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TO
y\
ESTABLISHED
Chronicle
Reg. U. 8. Pat. Office
Volume
Number
184
5592
New York
Price 40 Cents
7, N. Y., Thursday, December 6, 1956
Copy
a
EDITORIAL
As
By RAY D. MURPHY*
The Equitable Life Assurance Society of the U. S.
;
Citing
had with
an
average sort of business man in the
Midlands. Here is the way this Britisher sums
recent
happening
lations:-
-
British-American
in
;"'V
re¬
to take this
we
find. that
we
can't
count
-
longer. So why should we go on pouring out
millions for all this defense effort and this NATO,
any
stuff, when
allowed to
we
use
suddenly find that
it for ourselves?
f
aren't
we
even
and
'
.
.
&
"*
t
".What point is there in our giving you these
air bases and supporting all of your policies if
aren't going to stand with us when it is a
of our oil, and our economy and our
of this ordinary man of
everyday affairs specially interesting. We think
in his words the
explanation of much that
in the world today. They reflect the
nature
of
the
difficulties
that
R. D.
even
tight.
This
is
a
on
but
J
'
<
Mutual
SECURITIES
NOW IN
afforded
by Mr. Murphy before the National Association
Savings Banks, New York City, Dec. 3, 1956.
REGISTRATION—Underwriters,
complete picture of issues
a
undertaking in
our
now
"Securities in Registration"
dealers
and
Stale and
in
our
technical -prog¬
lifetime
not
—
having
much about how it all
happened, we kind of take it for
granted that this miraculous un¬
folding of new breath-taking prod¬
ucts—unheard of today—but a real¬
ity tomorrow—will continue. Part¬
ly because the pace is so fast we
unconsciously assume that as long
thought
as
we
very
have sound fiscal
and
mone-»
tary management—growth will take
care
of itself
—
hardly realizing
Hans A. Widenmann
that
growth
is
creating
its
own
problems and pressures. But this growth business is not
like anything we've had before—the demands it is gener-
Continued
on
by Mr. Widenmann before the National
of Manufacturers' Congress of American Industry, New
An
Dec.
investors
address
6,
page
44
in
Association
York City,
1956.
corporate
registered with the SEC and poten¬
Section,
starting
on
page
16.
State, Municipal
and
<0*
Municipal
STATE
Securities
AND
ww
MUNICIPAL
Public Housing Agency
COPIES OF OUR
LATEST
telephone:
HAaover 2-3700
BONDS
THE
ARE
corn exchange
department
ST., N.Y.
THE FIRST NATIONAL CITY BANK
MEMBERS NEW
YORK AND AMERICAN
IS BROAD STREET,
♦
Dl 4-1400
120
Bond Dept.
To
T. L. Watson & Co.
ESTABLISHED
American
Stock
Orders
BROAD
STREET
DIRECT
NEW YORK 4, N. Y.
^0ilthwt4t
WIRES TO
MONTREAL AND TORONTO
&
•
PERTH AMBOY
'
115 BROADWAY
NEW
YORK
Knox
Corporation
Class A Common Stock
BONDS & STOCKS
Analysis
oar
upon request to
Unlisted Trading DepU
(Room 707)
Pontoon Securities
(orpokatioti
Co.
MEMBERS NEW YORK STOCK EXCHANGE
BRIDGEPORT
CANADIAN
Regular Rates
Goodbody
COMPANY
DAtlAS
BANK
BROADWAY, NEW YORK 5
CANADIAN DEPARTMENT
Exchange
Chase Manhattan
Exchange
Executed On All
Canadian Exchanges At
Teletype NY 1-2270
25
Stock
Markets Maintained
SECURITIES
Exchange
York
Dealers, Banks and Brokers
Commission
New York Stock
New
34 offices from coast to coast
CANADIAN
1832
Members
INSURANCE STOCKS
Teletype: NY 1-708
TELETYPE NV I-22S1
Net Active
BANK AND
Members
STOCK EXCHANGES
NEW YORK 5, N. Y.
COBURNMAM
THE
Harris. Upham & C-
OF NEW YORK
Burnham and Company
CABLE:
NOW AVAILABLE
ON REQUEST
LETTER
BANK
30 BROAD
DEPARTMENT
BOND
VIEW
BURNHAM
MONTHLY
Bonds and Notes
"POCKET CUIDE FOR
TODAY'S INVESTOR"
CHEMICAL
FIRST
the
unbelievable
seen
ress
—
economy,
very
U. S. Government,
bond
fabulous growth of
but nobody is doing
much about it. AIL of us have
growth
in
■
IRA HAUPT & CO.
40
Exchange Place, New York 5, N.Y.
Teletype NY 1-702-3
WHitehall 4-8161
Exchange
Principal Exchanges
Members New York Stock
and other
1 M0RTH LA SALLE ST.
CHICAGO
i
42
address
*An
as
we
nobody does anything
about - it.
Today
everybody talks about
this
♦
of
bigger savings
in an editorial in the Hartford "Courant,"
Dudley Warner said • everybody 'talks about
weather
en¬
page
and credit system in which
1890,
Charles
the
popular miscon¬
Continued
securities are
•
In
this
to
answer
banks, savings and loan associations and the life insur¬
ance
companies, have all established new high records
vorably inclined to the Anglo-American alliance
for the reason that he thought he could count
Continued on page 33
DEALERS
the
ception. Actually our money supply as measured by de¬
deposits and currency in circulation is higher than
any previous time in history.
The mutual savings
keel. Note that he has heretofore been fa¬
tial
find
While I disclaim being
it sot
well as the
take a fresh
look at bank holding company restrictions. Concludes we
mast all do something about oar fabulous growth instead
of just talking about it, or "it may choke us.'*
•
of-im-
at
an
on
to
pressures,
capacity to expand debt, and recommends
mand
Nations and all of the current day alliances are
having in keeping the world in general
»ened. Notes growth requires
the Federal Reserve Board has made
Murphy
it
United
the
up
Before * discussing
"How
Long
Tight Money?" however, let us first
consider
"Why Tight Money?"
If
you were to ask business people why
money is tight many would say that
We find these words
basic
Hundreds
i
operate effectively; Stronglymaintains indepen¬
dence of Reserve should be strengthened rather than weak-
the outlook for interest rates.
the Russians?"
on
timely.
1
can
with any special powers of
prophecy, the question posed does
present an opportunity to discuss
some aspects of our monetary situa¬
tion which may shed some light on
"Why don't we just save all this money we're
spending on defense, and make the best of it with
going
easing
4i
tax system, banking system,
a
debt structure, and a money
it
.
dowed
future?
is
most
question.
matter
we see
an.
problems and
own
automatic, and required
pprtant business decisions are hang¬
ing
in
balance
while
executives
"strive
,
you
growth is creating its:
/ When one of my associates suggested "How Long Tight
Money?" as a subject for my remarks I protested mildly
since I dislike being cast in the role of a prophet.
I
had to admit, however, that it is a provocative subject,
'
*
*
will end with
<
Partner, Carl M. Loeb, Rhoades & Co.
Members New York Stock Exchange
Mr. Widenmann maintains it is too little realized tbat
of the labor force and industrial expansion rate; denies
little fellow is prime victim of fight money; and opposes *
selective credit controls and Federal mortgage policies.
-
it
on
By HANS A. WIDENMANN*
;
;
;
Federal Reserve's indepen¬
opposes plans to destroy the
dence. Predicts tight, money
-
■
now
that $136 billion investment is required
surveys
bring plants up-to-date, and denying the Federal Re- '
serve made
money tight, Equitable Life Chairman avers
further credit expansion at this time would lead to in¬
stability, In criticizing a' proposal made before the
American Bankers Association Convention, Mr. Murphy
Anglo-Ameri¬
can alliance as
something }we could count on—
that you would always back us up in a pinch
when our interests were-vitally affected, because
our interests and
your interests are, in the end,
the same. \ ': " /'•* '['■
"■'. \
'
come
j
to
:
"Look, we've
"But
In Economic Growth
Chairman of the Board,
Cabling from London, Don Cook tells in the
"Herald Tribune" of a conversation he recently
up
The Role of Credit
How Long-Tight Money'1?
111 Broadway,
WOrth 4-6000
N. y. •
Teletype NY 1-2708
2
The Commercial and Financial Chronicle
(2382)
The
Banks, Brokers, Dealers only
For
For Year-End Service
on
Blocks
equipped
fully
are
A continuous forum in which, each week,
and
loss
to
pro¬
they to be regarded,
are
switch
Director of Research
issues.
Further,
our
| nationwide private wire system,
complete facilities and broad contacts assure prompt, reliable OTC
service—always. Why not give
call?
a
New Yoilt Hanseatic
Associate
American
120
Teletype NY 1-40
BOSTON
•
CHICAGO
PHILADELPHIA
•
SAN
Private
Wires
to
FRANCISCO
Principal
Cities
this
play
King" unit
important
realize
a
fac-
that
two-way
-
been
in
strated
-
-
and foreign
to
a
other
highway
the
use,
two-thirds
a
E. T. Boll
of mobile
refrigeration units
producer
currently
supplies
me-
and
80%
about
of
in
ISO
Exchange
BROADWAY, NEW YORK B
TEL. REctor 2-7815
high
efficiency of the
to the lightness
in weight, compactness
and the
ability to obtain national service.
While the units vary in cost depending on size, the company sold
more
than $12 million worth in
in
Bank of Virginia
_>
Alabama-Tennessee Natural
Gas
Company
Lynchburg, Va.
-
Tele. LY 62
-
LD 33
30,
for
the
expected
to
about $3 million
increase
are
again
future
for
the
the
national
program
fiscal
1956
appears
particularly
road
as
construction
the
progresses,
popula-
tion
continues to grow and the
demand for frozen foods and perishables. increases.
Already it is
noted
that
localities
some
are
standards of refrigeration re-
quired
in
the
transport
of
foods
i:cT
Estate Liquidations
Appraisals
a
Specialty
ESTABLISHED
31 Wall
St., N. Y.
1929
Tel. HAnover 2-4850
units
for
cross-country
trailers
trucks, has recently made an
effort to develop
other sources
and
of
business to supply the
tant
customer
which
most
LOW-PRICED
alert
from
Inquiries invited
contract recently received
from the St. Louis Public Service
in
Two of these buses
1
Exchange PI., Jersey City, N. J.
[JEnderson 2-8570—N.Y.:
Dlgby9-3424
Teletype JCY 119
were
the
hot
1956
summer
enthusiastic
bus
by
mental
in
Because
instru-
was
contract
the
rapidly
in
the
and
regis-
response
riders
the
of
population
months
award,
growing
Middle
Primarily engaged
30
in
structural
and
the
ing
of
The
early
pany's
more'school
„
growth
operations
in
plants
of the
com-
Haydite
Minneapolis
com-
$356,000.
a
single
with
ample
onerating
economies
the
volume
sales
1956
the
all
and
shares of
only
standing
pansion
stock
common
to
earn
the
ence
with
its
;
m
,
stage,
$12
over
d2?ived
that 85%
in
mo
tion
i
trailer
e
the
is
common
anical
mec
national
trucks
by
shipment
and
cargo
quire
sealed
of
these
constant
of
railway and in-
ternational
Both
refrigera-
transport
of
cases
newer
trailers
by
boat,
from
industrial
com-
.
.
,
...
..
,
the nations
is
methods
refrigeration
re-
and
a
t
WALL
NEW
attractive
Prospects
over
is
and
in-transit
concrete,
sand
and
gravel, crushed stone, and precast
concrete
as
the
appreciation
the next few
actively
STREET
YORK
5, N. Y.
SUGAR
Raw
—
Refined
Liquid
—
E x porta—I mpo rta—Fut uree
Dlgby 4-2727
experi- products, ready-mixed and mixed-
good growth stock
offering
traded
in
structural
concrete
company
Stone
and
block
also
and
products such
and
offers
Canon
pip^).
The
Holiday Hill
Brick
in
a
va-
of color and sizes for interior
exterior
in
uses
N. Q. B.
OVER-THE-COUNTER
1
INDUSTRIAL STOCK INDEX
14-Year Performance of
residpntial
pnd commercial construction.
Sales
have exceeded the
company's abiljtv
to
produce
these
attractive
vears.
the Over-the-Counter Market and
presently sells around $8 to $9
share.
99
Other products which have met
with success are concrete masonry
The/>riety
ingredients of
per
LAMBORN & CO.; Inc.
raw material
ing States have been using Haysave weight and cost,
stock of this company ap-
stock
Canadian and Domestic
construc-
dite to
Thermo
pears to me to have the essential
^
Investment Securities
of
^
compact, light weight, refrigeration
equipment
markets.
refrigeration
.
ended Mav 31
Te.xas Industries
•
in research and high
product
be in excellent
mobile
jk.-.
out-
acceptance should
of
i
six-year period
2,000 F, causing the
emerged from
favorable
Dealers
"
activities
-
barely
experimental
King
a.
'■
900,--to expand,creating millions of
'about
program.
has
JJndcrtcriters—Distributors
remaining 15% from
residential construction and other
Since mobile mechanical refrigeration
Street, New York 5, N. Y.
which the company is
on
expected
37 WaU
Net sales
expanding
are
Burns Bros. & Denton, Inc.
sub-
of the last five years,
time there
Richmond 2-2330
Teletype 5S-A30
are
J fading producer of Haydite, a
^gntweight aggregate made by
c6n^^at}^{slia+®' aaJ ^laYv'".to-ov»r
steadily
CO.
WOO COURT STREET. BOSTON 9, MASS.
tion an(1 the
effected
States, this entirely neu§ source of
business may be an important factor in the near-term
growth of
undeveloped field
cJ>
v.*
sur-
controlled
in 1950 to
vear
is estimated
salesare
mercial
company jnaintaineu-a
servative capitalization and at'the
000
latest
in'the
it
assets
would
included.
were
of
assets
and unconsolidated
the
in
million
space
the
present
million
from $217 000
should become apparent in subsequent earnings statements.
~
During
if
sidiaries
rose
st.antial future growth in the fmld
new
KCLLER BROTHERS
gas
aggregate
total
and
$25
pass
consolidated under
roof
and
total
Today,
affiliates
land was acquired and
refrigeration manufacturing oper-
had
$15 million
near
joining
now
oil
lightweight
plant- and
in various parts of that city. However, in the spring of 1956, a new
plant with 90,000 square feet of
floor: space and 22 acres of, ad-
are
and
In 1950 the company owned one
•
Southeastern
company.
New Offices
products
in
boilers
steam
paratively small plants scattered
ations
our
properties.*
.
accomplished in several
was
'
in Boston
visit
Iowa.
rapidly increas-
population.
'}
con-
Texas,
Louisiana,
Oklahoma, Kansas, Minnesota and
In addition, some five subsidiary companies. and three af-
manufactures
position to participate in the sub-
this
When
,
nancing,
housing
developments,
mining, ceramic tile, mahogany,'
the
1
this
,
to increase substantially over the
next few years as the nation
.steps
for
V
Branches
Bankers
Broadway, N.Y. 6 COrtlaadt 7-5681
filiated companies are engaged in
such
diverse» operations
as * fi-
building
70
and
school desks and, functional furnifor offices, 'institutions'and
schools. This operation is expected
the
1897
—
A Investment
potential business, Texas Industries operates
West,
and
Ill
e Pr°bt picture is showing stnkln£ improvement,
ture
experimental operation during
Another
CAPPER & CO.
had
a
Southwestern
Bought, sold, & quoted
be
may
Office Tokyo
Brokers
.
wholly owned • bsidGeneral School Equipment
which
Home
.
,
a
iary,
Company,
-
Yamaichi
solved.
crete
'
-
company
fall
n0.n".c9n^c.
air cells.
When
u?e. as an a£gregate or in masonry
$1
pe'r
c
result is unusual inshare for the fiscal year ending sulation and acoustical properties,
Company for 100 "Thermo'King" Nov. 30, 1956. Last year-;an in- ample strength and a 40% saving
units to air-condition that number
surance
loan of $1 million was in weight.
Many of the larger
of buses for mass
transportation obtained to partly finance the ex- buildings in Texas and surroundprofitable
proven
tered
& INDUSTRIALS
diversification
company's valuable research has
the
MINING, OILS,
impor-
managements
illustration
that
the
An
in 1957.
PRIMARY MARKETS IN
profit is
•
write
Securities Co., Ltd.
Major
year
a.re ,bein^
economies have been effected and
-
of
information
besetting
earlier
,
com-
source
ap¬
last
Milton
or
,.Established
of
the
estab- new plant is calculated to increase
CS
operating efficiency sharply and.
the
i
seek.
[WerteoiviGompann
having
company,
j
lems
D.
current
Call
at
proximately
5V4. The prob¬
Earl
For
for
purchase
price
many
the Sante Fe.
as
remaining at practically
stationary levels for three years
now appear to be
stirring dine,
to improved Japanese
economy.
stcck
the current
reduce
This
Another
•
t
aSf •
supDlier nf efficient refrigeration
of
cnrYnU
;
such
*
depressed
available for future growth.,'The
^
SECURITIES
p
§|
operating costs and
deliveries.
'
y.
recom¬
mended
units to various meat packers and
other large shippers of perishables
the
and
company
to
r
e
attractive
is
and
already furnished
up
pany has
up
Sales
and °ther perishables.
OVER-THE-COUNTER
speed
increase
v
after
to
consequently,
o
growth
of frozen*
use
to
endeavor
and
facilities
the
BLOCKS OF
spoilage
sales.
endeavoring to prescribe by law
We will buy
railroads
percentage gain of better
than 33%%. In 1950 the company
reported
about $5%
million in
extremely bright,
Scott, Horner &.
Mason, Inc.
Nov.
year or a
year
Southeastern Telephone Co.
ended
year
That represented a $3 milincrease over the previous
1955.
Products, Inc.
addition
fiscal
lion
Air Control
owner
operating
unit
the
Trading Markete
doubtlessly selected
because of the very
was
by the
the
in the
continues
STOCKS
on
e c
this
This market appears to offer good'
prospects for future growth as the
foods
now
road
a
according to the requirements of
the perishable freight in transit,
current trend
The "Thermo King"
branch offices
our
JAPANESE
expan
C
-
company
railway refrigerator
the national market lor over-the-
which you see on the upper
front
of
many
cross - country
Stock Exchange
Stock
7m
cars.
the
as
*
chronic
r
interest
Direct wires to
the nast
tries is
the
This unit varies the temper¬
ature and humidity of each car
for
a
6, N. Y.
NY 1-1557
-
Birmingham, Ala.
Mobile, Ala.
^
rising costs, Texas Indus-
slon a
adapted
tion
unit
suffered from
.
subsidiary known as Thermo King
Railway Corporation which has
developed a mechanical refrigera-
is
and
HAbov* 2-0700
Now Orleans, La. -
op-
imminent.
annear
owns
unit
Memoers
Havine
ca^ of ind^gesti®n dTr?ns
profit--;^||0t ^
imTportant y.®
'
r°m °v
In addition to the units
of the best
trailers
York
19 Rector St., New York
.
,
Texas Industries, Inc.
soon prove
Several
units
,
American
EARL D. MILTON
,
applications requiring small, compact, high capacity refrigeration
relatively few
years
that it
has developed
one
established
road-haulers.
New
Steiner,Rouse&Co.
Members New York Stock Exchange
Members American Stock Exchange
payloads,
-.
sharply in the near future. Several foreign distributorships have
able.
~
field.
chanical
ftfc'PONNELL&fO.
Bought—Sold—Quoted
D.
,
demon¬
leading
Since 1917
Earl
—
erptions should
day
SCRIP
Industries, Inc.
coming
recognized to-
&
Louisiana Securities
E.
—
Milton, of Campbell, Henderson
& Co., Dallas, Texas (Page 2).
development.
Also
are
beginning to
to
attain
a
higher
field
RIGHTS
Texas
an
products in its
Specialists in
Corporation
theirmust
include e£- ,
Henderson and Company,
fccient refrigeration units. On a • - V
;
Counsel,
nafaon-wide basts, this new devel-^.;
v1 Dallas, Texas
op.ment should stimulate sales
has
Exchange
King
Boll, Director of Research,
Fusz-Schnelze & Co., St. Louis,
Mo.
(Page 2).
selecting
a
promising
growth stock, I like a company
which appears to have a quality
product supplying an
essential
industry and
capable of ul¬
timately be- 1
King
Corporation
Broadway, New York 5
WOrth 4-2300
Alabama &
Selections
carriers
-
Thermo
Member
Stock
,
When
tor in its
1920
Thermo
to
"Thermo
percentage of
King Corporation
dominant
Corporation
Established,
.
„
in
many
St. Louis, Mo.
Thermo
famous
expected to
part
Fusz-Schmelzle & Co.
400
intended
not
are
the
is
large trading department
maintains
primary markets in
us
as an
trans¬
Our
over
Week's
Participants and
Their
be, nor
offer to sell the securities discussed.)
BOLL
TED
E.
actions.
'
This
Ted
(The articles contained in this forum
brokers and dealers in their yeartax
of experts
group
advisory field from all sections of the country
participate and give their reasons for favoring a particular security*
vide substantial service to banks,
end
different
a
'
-
Forum
Thursday, December 6, 1956
.
.
in the investment and
Try "HANSEATIC"
We
Security I Like Best
.
35 Industrial Stocks
POLDER ON REQUEST
building stones
"
The
caused
CaUSed
*
f
the
\he
Droblem
common
stock
whirh
to
dron
common stock to drop
Continued
on
page
8
National Quotation Bureao
Incorporated
46 Front Street
.
New York 4. N. Y.
Number
184
Volume
5592
;
i
The Commercial and Financial Chronicle
.
(2383)
3
MM
'V
Long-Range Rail Outlook
r *
I ND EX
-
I
Manager, Transportation and Railroad Section
The
investment
compares
....
"
'
*
Page
•-
.
AND COM? ANY
IIow Long "Tight
Moody's Investor Service
Recognized rail securities'specialist
pros- ?
Role
of
Money"?—Ray D. Murphy
Credit
in
Economic
Cover
RAGS TO RICHES
Growth
—Hans A. Widenmann
the current tight money mar¬
ket; and discusses the probable future outlook of individual *:
carriers, including the changing impact of accelerated amorti¬
zation upon earnings. If, as is expected, the 1957 freight vol¬
ume does not differ much from 1956, and the pending emer¬
Cover
pects of stock and bonds during
offsets
rate relief application when granted more than
gency
increased added cost,
3
Promoting World Trade—Hon. Sinclair Weeks
4
Florida and the
;
Tankers Away—Ira U.
an
is
being gradually displaced by
the private automobile, airlines,
-and trucks, and for that reason,
feel
a
.
that
rail
dubious
6
i
Cobleigh
our
ragged obsoletes!
Obsolete Securities
Survival—John Jay Hopkins
WALL
99
STREET,
Dept.
NEW
YORK
WHitehall 4-6551
Telephone:
7
;
Research in Business—N. Leonard Jarvis
Investment
cause-
Advertising
stocks, at best, are
of investment.
type
Therefore, I feel impelled to talk
briefly on the long-range outlook
'for the industry.
railroads
could
handle a much greater volume of
traffic with their present facilities,
stock,
that
so
heavier
a
not
am
traffic
The
9
._
all
at
10
Developments
for
Auto
Other
and
Municipal
Bond
MATERIALS
Loans
UNITED WESTERN;
11
Market
and
f
-
George
/'? —Elizabeth E. Cook.
t
Rising Money Rate Period
1
MINERALS
j
12
McLEAN
.World-Wide
—Hon.
optimistic with
The
little coricerned %
with the inroads currently being r
As" you all know freight traffic made by the private automobile-r
is the backbone and breadwinner and airlines. Forced to run lightly .<
for the carriers and is, by far, the patronized trains, at fares which
-major portion of their business, ac-v fail to compensate for increased
counting for 86% of total operating costs, most railroads in my opin-^
-revenues.
Trucks, inland water¬ ion, would be better off if there :
ways,
and pipelines have- been were some way they could get rid ?
v
: \
steadily eating into rail freight of their passenger business,
loss, I
a
STRATEGIC
Alive?
or
load
respect to passenger business, but
as
this service is generally oper¬
ated at
B.
the
would be tremendously beneficial.
I
Credit
\ —Edwin
future optimism. Aside from roll¬
ing
Status: Dead
s
—Richard E. Cruikshank
Instalment
rail¬
antiquated and out¬
moded form of transportation that
as
Self-Sufficiency to Permit Economic
old
freight volume in next decade to increase 20% to *
Some people look upon the
roads
riches
5
for
South—Roger W. Babson
Providing Energy
then railroads, according to Mr. Day,
25%, and fast amortization's cessation after 1957-8 to
earnings to decline.
*
V
We'll give
Long-Range Rail Outlook—David M. Day__
should produce somewhat better earnings in 1957 than in 1956. r
Author reviews rails competitive position to total freight traffic;
and expects
LICHTEIWEI!
»
Articles and News
By DAVID M. DAY*
Oil Problems and Long-Run U.
Fred
A.
S. A.
Shortage
Seaton
Stock Market Today—Edmund
Brown, Jr
Foreign Economic
BIG HORN-
14 5
2
17
Policy: Sins of Commission and
Omission
POWDER RIVER
PACIFIC URANIUM
J
—Emilio G. Collado
L__
;
*
"
Automation and Our Future—Thomas J. Watson, Jr.
am
INDUSTRIES
13
18
____________
New Capital Formation Outlook for 1957 and the Years Ahead
J
t—Robert P. Ulin.
Conservative
20
Economic Policy: A Current Appraisal
J.F.Rei|Iy&Co.,Inc.
"
—Henry C. Wallich
.
20
i
Salt Lake City Stock Excfi.
Members
Spokane Stock Exchange
e
traffic
w
that
so
the
the nation's total
mles
•ton
in
has
rails
of
share
declined
76%
from
1940, to 56%
in 1950, down to 49.4% in 1955.
However, in the past 2 or 3 years,
•
1925, to 61%' in
the
slow
-to
down.
For
1955
in
49.4%
decline
of
rate
tended
has
instance,
compares
the
with
in 1954, and some authori-
49.5%
ties believe that railroads, in the
•
future, will be able to hold their
the
of
share
.somewhere
Time
into
this
are
.
the
overall
traffic
at
the 50% level.
permit me vto go
near
does
not
evidence
that
supports
belief, but, if further inroads
made into rail traffic by other
modes of
transportation, I believe
is likely to be much
erosion
.the
Private
The Current Earnings Picture
inter-city freight
in
will fail to
1956
mate $850 million
The railroads, while they have
:
lost
•
relative
terms, have, nevertheless, gained
absolute
in
,
business
freight
That
terms.
r
in
this
is,
freight traffic has been increasing
,
but has failed
the
to
keep pace with
rise in overall
rapid
more
inter-city freight traffic. All inter¬
'
city freight transportation in the
15 years between 1940 and
1955
increased
•
r
i
;
-
robust
108%, but the
railroad gain in.ton mileage was
a
comparatively smaller .68%, In
its forecast covering the next 10
years, Railway Progress Institute
estimates a 44% increase for overaU inter-city freight, traffic and
a 41%. gain for rail freight traffic
alone.
This
is
predicated, on a
continued high level of business
activity, growth in population, and
higher standards of living.- This
forecast may be over-optimistic,
but I believe rail freight volume
a
may
increase
next
decade.
the
it
rails
does
a
25%
to
20
This
does
the
in
riot
make
industry, but
basis for some
growth
provide
a
♦An
address
York
City,
ot
by
Mr.
Day before the
Brokers, New
for the lower
6%
1956.
.
,
42
.
22
The Sale 1 11 Never Forget—Andrew L. Childs
24
r
The Labor Outlook in 1957—William Haber____
56
'
'
-
'
•
.
*
*
*
;
•
earnings is that the
\
New York
freight rate increase, granted
take
until
effect
March,
come
the
middle
Market
Recently,
a
agreement
was
•
calls
three year*, wage
negotiated with
brotherhoods,
with
for
7c
a
12V2C
effective
increase
Nov,
additional
an
1956,'
each
Nov.
operating unions will settle on a
similar
ibasis. If all employees,
agree to these terms, it will cost
the industry $330 million annually
the
first
year,
and $85 millionThere
is
anch
also
calling for
the
a
for
crease
escalator
% point rise in
living index.
This
as the cost of
has gone up three
points since the first of the ;year
and could rise 10 points in three
living
these
to
and
It
(Editorial).
Cover
Pacific Uranium
26
-
Strategic Materials
8
Einzig: "Gold and the Suez Crisis"
.
18
From Washington Ahead of the News—Carlisle Baigeron_-__
16 V
Indications of Current Business Activity...
52
Funds
Mutual
About
News
x—-------
Banks
Observations
—
Bankers
and
Singer? Bean
53
_
&
30
__
A.- Wilfred! May....
5
Our Reporter on Governments.
28
____
Public
Securities
Utility
.
Teletype NY 1-1825 & 1-4844 :
Securities
Now in
added
54
-
Registration
Aberdeen Petroleum
46
...
increases
meet
in
material and fuel costs, all of the
have
asked-the ICC
for
7% hike in freight
rates. This is likely to be granted,
Security Salesman's
The Market
Offerings.
Security
•Prospective
wage
.
.
.
49
—
_—
Class "A"
37
Corner
and You-^By Wallace Streete—
Listed
16
and
will
probably
Jan.
around
1.
go
With
The Security I
dues
allow¬
Now Around
2
Like Best..
The State of Trade and
!
Industry...
4
*
for
exemptions and rate
coal, lumber, fresh
fruits arid other commodities, and
ances
on
Continued
■
on
page
and
Washington
*
*
You
45
York
1
Twice Weekly
and
COMMERCIAL
Reg. U. S.
Drapers'
E.
London,
Gardens,
C.
Eng¬
CHRONICLE
Reentered
Patent Office
DANA
COMPANY, Publishers
25, 1942, at the post office at New
York, N. Y., under the Act of March 8, 1879.
REctor
HERBERT D.
Subscription
2-9570 to 9576
Subscriptions
SEIBERT, Editor & Publisher
Possessions,
WILLIAM
DANA
SEIBERT,
Thursday,. Dec. 6,
President
Dominion
Other
1956
of
statistical issue — market
corporation news, bank
and city news, etc.).
Boston
Nashville
•
•
Chicago
Schenectady
•
•
Glens Falls
Worcester
state
Other
Chicago
Offices:
3,
111.
135
South
La
(Telephone STate
quotation
Bank
2-0613);
$67.00
Every $400
.
rate
of
maae
in
8.
of
year;
In
per
of
exchange,
New
82%
stock
gain
(if retained)
We
projected
look
and
to
program
en¬
Aber¬
of
ac¬
inflow
and
to
add
to
intrinsic
value of stock.
year.
Send for FREE Report
year.
Record
—
Monthly,
(Foreign postage extra.)
account
eign subscriptions and
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U.
Members
per
$63.00
cash
hancement.
deen's
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year.
Note—On
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clearings,
Salle
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Countries,
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Thursday (general news and ad¬
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plete
•
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and
Union, $60.00
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records,
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United
in
a
dividends
Febru¬
ary
B.
Every
TELETYPE N. Y. 1-5
B. Dana
second-class matter
as
shows
including
Copyright 1956 by William
Company
Stock Exchange
•
Outstanding Purchase Because:
invested in Aberdeen Petroleum
Park Place, New York 7, N. Y.
ST., NEW YORK 4, N. Y.
TELEPHONE IlAnover 24300
$5.50
Corp., Class "A" Stock in 1950
,
Spencer Trask & Co.
An
Steady growth
^Co^umn not available this week.
WILLIAM
New
Stock Exchange
American
into effect
FINANCIAL
Members
on
emergency
PREFERRED STOCKS
BROAD
Direct W ires to
Philadelphia * Chicago • Los Angeles
15
.
Securities
Railroad
inc
40 Exchange PL, N.y.
"
,
56
Reporter's Report
Our
Mackie,
HA 2-0270
;
....
railroads
See
We
some,
index
years.
To
offset
costs,
As
lc an hour wage in¬
of
me
Lithium Corp.
year.
clause
every
cost
worries
succeeding
an
•
1
thereafter. It is presumed that the
additional
l'-'
Dealer-Broker Investment Recommendations
hour
1,
lessop Steel
35
...
Bank and Insurance Stocks
non-operating
which
(Boxecy
Regular Features
•
25
25
;
15
"
>>
that 1st quarter net in¬
substantially below 1st
so
was
Can Hope!
of
quarter earnings in 1955.
an
We
land, c/o Edwards & Smith.
specialized in
4-3634
Lake City & Denver
.
Security Dealers Association Publicizing the '
Over-the-Counter
not adequate
to
fully
offset
higher
wages
granted late in 1955. Moreover,
the freight rate increase did- not
The
have
Place
• ! HE
Jersey City
Wires to Salt
t
Published
For many years we
Teletype NY 1-4643
Exchange
1
near
I estir>
compared to
Broadway, New York 4
•
earlier this year, was
Customers'
Noy. 27,
Programs
;
$925 million last year. The reason
limitations
Association
as
Meistrell
S.
DIgby 4-4970
.
the
-gradual than in the past.
the
meet
record net income of 1955.
Lending Opportunities^" Federal Housing
—Frank
Despite a slight gain in traffic
volume, Class I railroad earnings
'
more
•*
the
fluctuations
remittances
for
in
for¬
advertisements must
York
funds.
'General Investing Corp.
Members
American Stock
80 Wall St., New
Exchange
York 5 • B0 9-1600
4
The Commercial and Financial Chronicle
(2384)
.
.
Thursday, December 6, 1956
.
Japanese Trade Creates Problems
Promoting World Trade x
y.V'
'
By HON. SINCLAIR WEEKS*
In the present
"
Curtain
;
be in
Secretary of Commerce
Remindful that this is the 22nd anniversary
of the Reciprocal
promotion and protectkM# views, | and declares
Administration will again seek Congressional approval of
trade agreements. After a
lapse this authority to., bargain
reciprocally on trade matters was
of the passage
of the income
in
the
was
recreated
im¬
During the
.Century
nation
19th
it
ing to observe
when¬
that
business
ever
was
good
tariffs
1
were
w e r e
o
d—
presumably
because
farmers
the
Sinclair
did
hot participate
Weeks
X ]
!
fully in txie prosperity and be¬
cause government revenues
were
larger than those required.
When
•
:
business
it
bad
was
semi-finished manufactures.
and
:
close
Exclusive of
Back
recite this bit
and
Forth
of history
last
turn
of
the
down on the tariff scale
with
variations,
the
the
for
in
and
and
audience ;
in
problems
of
not
because of
to our economy to be placed
jeopardy by an unwise, un¬
balanced
protectionist policy.
These
exports represent the
duce of
and
about 36. million
factured
Over
pronounced.
goods
four
the
of
million
and
American
over-all
trade
*An address
by Mr. Weeks before the
43rd - National
Foreign Trade • Conven¬
tion, New York City, Nov. 26th.
many
tial
of
raw
our
foodstuffs and
materials...
deep
very
between
the
"to
foster,
The
today
nations
that
is
such
:XX
have
TT
on
,
X
;
.
one
struggle
approaches
a
climax
as
of the busiest periods in steel history.
portends
upward
an
the
the
The
in steel prices soon,
boosts as opposed to base
;
break
impact of Suez probably will hit
United States efforts to help Europe
"little war" in Egypt will affect
plates, structural, and pipe.
delayed
aftermath
of
is
estimated
risen
a
of
that
the
1,
steel
production
ton
since
the
Jan.
by
conservative
$5
last
costs will
At that
August.
a
steel
labor
wage
time, the mills boosted base
prices an average of $8.50 a ton, but the increase was considered
by some mills to be less than enough to cover cost boosts up to
that time, declares this trade weekly.
■'.*
trade
Record steel scrap
is
page 26
into
the
settlement
out this last statement
Continued
.
.
critical products as
It
good.
good would only be to emphasize
.XX
that
not disturbed
than
cost-versus-price
head
Meanwhile,
my
the nations
was
the steel market in January.
promote,
of
he
probably in the form of steel* extra
price advances, it adds.
X
statute
because
conviction
the
To spell
also
October,
during '
X-Xvxr'X/'X X;X-:;X;" Xvv;
indicated
Clague
index
more
combination
the
of the United
...
price
for
weather
that trade between
essen¬
X.
.
trade
X;%X X'XXXXX; -X
higher
still
go
increase means * a two-cent an. >hour pay
1,000,000 auto and farm equipment indus¬
try workers.
Some;300,000 other employes in the aircraft and
metal working industries also will get hourly wage hikes of one
to two cents, the Bureau added.
Some electrical workers Will
also'get more pay. "XX;XXxX-;X• • XvXX XX;
':
xXx"'■i:
Steel mills are fighting a desperate battle against rising costs.
Some companies are using every device short of a base price
increase to bolster 'shrinking profit margins, "The Iron Age,"
national metalworking weekly, states this week.
r
this
-
would
.
consumer
The
develop the foreign and do¬
States."—but
for
pattern
foreign
mestic commerce
three years workers and their families are
largely
dependent
on
foreign
ago
I
pointed out that it
was
Secretary of State Blaine
and trade.
President McKinley, when he was X On the import side I need
only
Chairman of the House Ways and point out that we are dependent
Means
on foreign countries as a
Committee,
who
first
part of
with
probably
Mr.
boost
charges the Department of
Commerce
manu¬
country,
When I spoke to you
our
only
which
of
acres
farmland and 1/ 10th of the
less
pro¬
concerned
it
climb would result in inflation.*
mills
before
said
However,
Trade-
myself
year ago were
continued
the
Free
1956
present
total of 215,000 during
a
a
price index rose 0.5% to 117.7% of the 1947the Bureau of Labor Statistics said. It was the fourth
this year, apd the Bureau's chief, Ewan Clague said
the November index "tends to be pointed upward." He would not
guess how much.'
V'": ^X:XV X,:X::v"X x 'V^X^XxXxxxX^X:'
are raised
with respect to
objective when our industry
is subjected to competition Trom
equally
efficient .industries
of
.
unemployment insurance by jobless workers
to
New claims
officials
The
this
I
for
1,900
49 average,
new record
lems
military aid, total
are expected
to
by
November.
United
of
.
The cost of living went up to another new high in
X
>
promoting,
interest
-
lumber
and
the effects of claimant rescheduling because of holidays.
and
security to remain .eco¬
nomically strong. Searching prob¬
Export sales of such magnitude
obviously too important to us
continued,
however,
essential
in
showed fractional
construction
processing,
the week ended
208,300. Insured unemploy¬
ment, the Bureau of Employment Security noted, went up 14,200
to a total 951,000 during the Week ended Nov. 17.
The total in
the like week of 1955 was 843,300. The increase in this category
was attributed to seasonal curtailments in a variety of industries
World
are
century
and until 1934 fluctuations up
is
"
claims
New
dropped
Nov. 24.
.
sim¬
long-range economic planning on
the part of businessmen was ex¬
ceedingly difficult.
the
It
States
food
employment has created a marked shortage of labor
in at least two major New England areas.
It's also plaguing em¬
ployers in many other parts of the-country, the United States
Department, of Labor reported. Many big industrial centers re¬
port jobholders at a record high, with the total still mounting.
Employers in four-fifths of the areas checked said they anticipate
job gains into early January.
!•'_.;■■■ 'X-X. X X'.
no domestic industry would
placed in jeopardy.
X
be
i
the
Rising
the reduction of barriers to world
the
of
in
latest week
under those of last year. Increased employ-
7%
were
occurred
industries.
other
countries
operating .with
wage
scales. and a standard of
approach the $17 billion mark, as
living substantially below ours.
compared with $14.3 billion last
year and $12.3 billion in 1953. I
t
Administration Promotes
f
ply to show that the swings back
and
forth
necessarily
brought
about unstable conditions in which
Since
that in
Unemployment claims in the
ment
trade
Toward -the
be¬
exports
I
X
declines and
negotiating at all Iwith
or without hedges.
*
quently stated
Importance of"Exports
as declines took place in automotive, electric power,
industries. Compared with a year ago, how¬
total production continued at a higher level.
x
' ;
ever,
Low-Wage Competition
to
necessary
Swings
of
somewhat lower trend prevailed last week in total industrial
coal and paperbbard
.Japan—with,
1
45%.
to
A
ago more
years
Failures
production
our
hundred
a
Business
able to persuade only 18, in¬
raise tariffs century, significant changes began
to take place. U. S. exports for
again both to produce the needed
revenue
and to give to industry the first time exceeded our im¬
the necessary opportunity to de¬ ports. Since the United States became
a
creditor
nation
during
velop. The extent of the swing is
shown by the fact that duties col¬ World War I we have been con¬
lected on all imports —- whether tinually confronted with the prob¬
dutiable or not—ranged from 15% lem of bridging the dollar gap.
came
arid Industry;
*
;
of the 32 member nations she
high wage countries from -com¬
than 75% of U. S. exports were
petition by highly industrialized
composed of raw materials and low wage countries. In attempting
.unprocessed agricultural products, to reach aft'
equitable and; longwhile 75% of our imports were
range solution every nation should
then-finished or. semi-finished in¬
give equal consideration both to
dustrial products. Today, nearly;
their responsibility to their-Free
,75% of TJ. S. commercial exports, World allies and to their
obliga¬
Or; in 1950 an estimated $12% bil¬ tion to maintain healthy domestic
lion, are manufactured goods—ap¬ industries. Neither of these ob^
proximately
twice
the
dollar jectiyes should be sacrificed for
amount of our imports of finished
the other. The President has fre^
interest¬
is
change in
Index
Production
-Auto-
position in the X,' This Japanese picture highlights
family of nations. As a new young the serious problems confronting
the
,
Commodity Price Index
Food' Price
•
port tariff.
Output
Retail Trade
i~
State of Trade
country *
tion
in 1934.
-The-ehanges in our tariff pro¬
cedure
instituted in 1934 reflect
1912
tax
Electric
Carloadinja
U. S., to enter * into
agreement negotiations.
Practically all of these 18 coun¬
tries
have
established
stand-by
measures which operate to protect
their domestic industry. However,
the U. S. .opened wide its doors
with no special restraint or hedge
looming in the background. * The
remaining 14 GATT countries in¬
voked article 35 under which they
obtained release from the obliga¬
rocal
the United States until the advent
Steel Production
that every
trade
the
X
ThXX;X:x;
cluding the
brought into our tariff legislation
authority to enter into recip¬
history of tariff making in
country is a fascinating one.
The main source of revenue for
see
was
membership in O. T. C. in order to implement foreign
Offering "moderation^ as the proper
approach to tariff issues, whkh is shown to crosf party-liner
now in the South, Secretary Weeks declares liberal or protec¬
tionist extremism might cause Congress not to pass new re¬
ciprocal trade agreements or to enact further quotas on imports
trade expansion efforts.
The
interest to
but
U. S.
this
to the Iron
believe it to
we
is
economically
strong. Let us look at one of our
important partners, J a p a m
In
1955 Japan acceded to the General •
Agreement on Tariffs and Trade ;
tration's trade
the
countries,
our
free
Act, Commerce Secretary presents Adminis¬
Trade Agreement
alignment of the
Free World as opposed
prices are the major threat to steel earn¬
materials also have risen. These include
coal, ferroalloys, iron ore and pig iron. Freight rates are likely
to rise in the near future.
Under the cost-of-living clause in
labor contracts, steel wages are expected to rise three cents,
possibly four cents, an hour Jan. IX"
X*_%/'.*XXX"'V *■
X ;
ings,
f
but
other
raw
-
Under these conditions, something has to give.
If base prices
increased, then steel price extras, charges made by the
special processing and handling, will go up. Perhaps
much as $3 a ton, states "The Iron Age."
*
are
not
mills
as
for
Continued
WE
ARE
PLEASED
TO
ANNOUNCE
JX
XM*S, CH&9L/E$
We
BEEN
EL ECTE D
PR E S I D E
AND
..
CHAIRMAN
OF
THE
NT
..
—
OF
are
clac.
NEW
AND
1*5-6
DOMESTIC
name
to
■'
79
I,
changed its
Dealers,-! nc.
Amos Treat & Co*, Inc.
—
MEMBER
X. .X'-.-X ,.
pleased to announce that
All Statei Securities
DIRECTORS
BUSINESS ESTABLISHED 1865
DECEMBER
*
:
cftjJWxlGSSct&C).
■
.X.v..
\'v
-■
BOARD
■
„
has
/
page
ULRICK
***/ '"—>
H AS
on
THAT
YORK
OTHER
AND
STOCK
EXCHANGE
Wall Street
•
BOWLING
New York 5, N. Y.
GREEN 9-2520
LEADING
CANADIAN
EXCHANGES
November 30, 1956
Teletype NY 1-182
41
Volume
Number 5592
184
The Commercial and Financial Chronicle
; ;
.
(2385)
'✓./V
■X'
jackpot in Florida and the South¬
east/but it is coming some dayY
Florida rand the
■
By ROGER W.
Florida*
A.'* V
?»
v * ?"}
BABSON
•
•
states
tourists
•'*
•
,
Florida
holds
of Florida is
directions.
,
future
a
t h
and
calculable dollar-and-cents total of the tax bill.
Wilfred
A.
Y.
example
habit,
of
such
is
under-emphasis
year-round proclivity, to gloss
a
the ^acceptance
on
the
:
.
sugar-coated if not actually
*
desensitized
that
under
'
•
;
.
never,
getting
-t
; /'Y
platitude about
soothing
[poor through taking profits. U
Yr;:.C Y
»
•
*,
"
: Profit-Taking Realism
.
.
/'/The simple
%>•
a
want
1 i k
has
the
income
new
Remember
one
its
famous
fur
little
with
Beach
hard
sand
world-
racing
for
growing.
/
-of
sure
plenty
food
of
/.Y/a;/.y
Y
Baker, Weeks & Go.
you.
which
panies
concerns'
f
knew
you
beforethe
as
war
Street, New
South
the
as
more
homes
year-round
and
are \
on
to enlarge their
Edmund
B.
ship.
All the South
.
has
are
no
in
On Jan.
or
partner¬
1, Hayden, Stone & Co.,
the New
members of
^Florida, which
State income
to
Y
:;Yvr;Y;;AdmitvfhrtB0»^
parking space for cars..
low
Sullivan
Wi
and
Hayden, Stone to
•
Taxes
Exchange;
Frank
Hausmann
,
airports to handle
safe for the jet age.
admit
Emit J.
more
built.
the traffic and also to- make therh
needs ifiore
will
1
Bartlett,
Builders and/ engi¬ //Most Southern citifes will " have'
over-yalued in gelation/to
&
Of the. New York Stock
Jan.
;
Co., 1 Wall
York City, members
Weeks
have
into very large operations.
This will happen to many presentday small construction companies
in
Baker,
little
grown
;
Admit Three Partners
:
that since the war
great growth all
Construction com¬
been
has
around
farming industries in Florida
are *
yourself
there
cattle
The
be
population of
ly. Think of your own small town
Y'.;'Y; where you, live and you can see
veconomy there
plenty- of jobs for people, who
are
willing to work. There ap-pears/to be: room for every one;
Certainly, the South is /always
looking, for young people willing
trade.;
also
and fuel.
is
Cities will grow there, very quick¬
* ; Y' >Yvi.:
some
to affect the
•
e
Ore
Team
United / States
York
Stock
Exchange, will admit Carleton H.
inheritance
Simmons
.
hotels
rates,
summer
whole
a
Florida and other Southern states.
Florida's
In
/
the
of
bound
neers arq needed,
In fact,, most
professional men can .Settle in the
South today and have no difficulty*
; the medium to which the proceeds are to be transferred,- be it cash [or another security, by at least the amount of the tax bill accrued
finding work.,Y//': .%./
-'Y Y
; on his capital appreciation.. For example, the long-term holder of
:x stock bought at 40 and now selling at 120 is justified in selling "$ Older People Still Flocking South
; on the conclusion that the held stock is
still
The- constantly increasing popu¬
hapcli-
and
-
though appareptlyr- distasteful, Y
capital gain. should be premised
incontrovertible,
truth is tbatadecisiontocash in a
c
lation
expanding
to
Y ;■
in
Florida.
Roger^W. Babson
v
oyer
the
healthier
itiate
•
;
of unrealized-capital appreciation, an
inroad thereon but often
inexorable
i
An
\
.
the, tax
■
May
•//.
special
attract
summer.
and
undreamed of before:
women
People
seem
"pier
influencing your portfolio decisions. ■*.■
Equally objectionable -is - the temptation- to ; under-emphasize and gloss over the readily
>
in
a n
r e
a
factors
wmm.
both for
North.
.
v
airlines
,
principles.
.•
V:
- y/'A "A
Discipline yourself to keep that nasty
threatening tax collector in proper perspective! /
t Refrain from over-emphasizing the tax factor,*;";
a tendency stimulated by the deluge of year- '1
end literature for the tax-troubled; bearing in
mind that it should only constitute one of many
/
'-f
winter and
the
beach,
Practically all jacket! Rents are lower. One can Cypress Gardens, the Everglades
National Park, Hialeah
still growing in many build, a very modern/house that
and its
Light industries are may be planned to make house-< pink flamingoes, Key West with
its famous deep-sea fishing, Lake
'
finding the keeping light.. People are finding
and
the
beautiful
Bok
South more it constantly harder to get servants Wales
and; more the and hence are qsing that money "Singing Tower," and Marineland
with its magnificent aquariums.
-ideal spot..La¬ to go out to their local
Country
bor is s o m e- Club for some meals. 1
Y.
Y//,/ Finally, if World War III should
what
come, Central Florida
should be
cheaper
a very safe place in which to live.
Long-Term Future for All the
and absentee¬
South
It
should
ism is far. less
escape
bombing1 and
'
•
which
in
spot
both
that
to
itself and for you.
investment
basic
and
incidence
tax
ideal
the
more
''Yv'to locate.
j
of detailed
between
and
Now
Southern
continue
Daytona
HOUSEKEEPING'
information—rules,' regulations, '
-instructions, avoidance hints, etc.—descending on the individual
from every direction and source midst this tax-housekeeping sea'son, this column will confine its contribution to a few general
caveats for the ^ogical investor.
Above all—
and this assuredly is worth, emphasizing and
re-emphasizing — you must realistically apr
praise the relative weight to. be apportioned
the deluge
Midst
South
AND HIS YEAR-END
THE INVESTOR
TAX
have
finding the South
more
ol&ef
will
Well-known investment adviser analyzes the potentialities of
Florida and the South.; Mr. Babson says lighter industries are
By A. WILFRED MAY
5
and
David
B.
Stone
to
Men. and women still,, think of:
only if he is convinced that X is overpriced by $20 (the amount of
tax; though it does have an1 "inhis tax payable at the 25% ceiling) or by 17% in relation to either -v Florida as the ideal place to retire.
tangible" tax/Y~ Y Y~ YYv'-":Y -—Y partnership. They will make their
another available attractive stock or to cash:
In effect .(that is, V Every, year thousands go to Flor¬
headquarters in the firm's Boston
net after'tax) he is selling his stock for 100/ not 120y Either .he Y ida to do just this.,. Subsidizing
Y Y Land as an Investment Y
: office, 10 Post Office Square.
On the same date, Albert Ehrenshould see something* equivalently undervalued into which V to
retirement at 65 years of age has
After
the
next
stock
market
switch, he is convinced that the 100 (not 120) constitutes,an advan-> helped to bring these people South. crash people " will recognize that freund of Albany, a limited part¬
•
1
.
**
^
.
'
tagcous liquidating price.
;
.
%Yvv/y-''A
:••/./;
YY; ^/V%Y:'- They know that living costs
are
good real estate, especially in
ner
an
in
the
firm,
will
become
a
general partner.
And realistically, one certainly can "get poor through taking Y cheaper there, and this will be inflationary era, is the best invest¬
especially true if the United States ment: I have always advised buy¬
profits," via the tax-slicing of a substantial increment off the prof¬
is going into a "cold cycle." After ing a small piece of property on
its of successively gaining and losing transactions—embodying the
J. L. Loeb Elected
the North, it is a climate in which the outskirts of a small town and
heads-you-win-tails-I-lose process of attrition. / Y - V
//
.
>
over-emphasizing the tax factor, overzealousness to offset
it often leads to pointless, and even costly, registration of book¬
In
keeping
:
failure to allow for the accompanying
The net gain or income against which the
through
losses
transaction
expenses.
loss is to be offset must exceed not
only the loss but the brokerage
these
example,
expenses
on
switch between stocks selling at 17, since
a
setting tight until the town grows
sell
acreage land, hold onto the min¬
eral rights.
Often a separate and
to
ern
and
sun
home
I
outdoors.
play
artificial heat.
provide
small
Fuel bills are comparatively
would amount to $52! on a 100-share lot, making
new stock $17.52 and not $17
per share,
and clothing is
less expensive. No
elaborate
commission and the transfer tax incurred in the switch.
For
do
advise, however, that every South¬
expensive
clothing
or
although
needed,
is
winter
the
out
very
to
If
you.
John L. Loeb, senior partner
should
you
the
of
rights alone later on. The
oil industry has yet to
York
investment
of
bank¬
ing firm of Carl M. Loeb, Rhoades
&
profitable sale can be made
of these
New
Co., has been elected Chairman
the
Baord
and
of I a
newly
created
The
hit the big
executive
committee
Atlantic
Cuban
Sugar
of
Corp.
effective cost of the
the
the switch is
justified only if the loss on the sale of the old stock is
to offset the additional half-point on the new.
of a high bracket taxpayer (as 66%%), he would
sufficiently large
Thus, in the
case
market shrinkage of 1% points before he would derive
saving. Short of a lV2-point registered market depreciation, he actually loses money.
require
a
We
cent of tax
one
Moreover, it must not be forgotten that in connection with
tax-loss
switch for
purposes,
in the event of
1
value
case
for
the
of either $100
intervening
sales
or
no
transfer
par
tax
calculated
as
oil
stock
a
value, -which tax amount is
ivilli
the
the
announce
our
merger
firm of
53
New
.YYY'Y
having
graded down
values.
par
page
at
Social
Embodies
of
on
from a lecture in the series "Your Investments"
Research, New York City, Nov. 29, 1956.
'Excerpts
a
investment-
success
Continued
School
pleased to
are
a
HELLER. BRUCE &CQ
par
in the
Y
"
New York
San Francisco
'
y
,r
vA^n
1
n
o
n
u
c
i
•
.
g■-■'•'y-'Vy.'.;:
n
V
;
the
formation
on
December
1, 1956 of
f."
FuLton Reid
r-
*
&
'■
Y
Co.,:Jnc.
v
*«
-
•
'
.
'
successor
to
the business
.
of
"
'
.
'
•
.
"4
■
if. ItMITII
[
"
'
V
the
*
partnership of
.
-Y:';
.
FULTON/REID 6- CO.
-
-
which
-was
'
terminated
on
'
'
NEW
•
Y
LOS
YORK
STOCK
EXCHANGE
ANGELES' STOCK EXCHANGE
Nov. 30,-1956
SAN
*
.
.
SAN
FRANCISCO STOCK
EXCHANGE
AMERICAN STOCK EXCHANGE (Associate)
FKANCiSCO
X
1186 Union Commerce
,
December
1,
Building
LOS
ANGELES
NEW YORK
CLEVELAND, OHIO
1356
December 1, 1956
,
•
.
1
•: .-"
'
.7".
.
ESTABLISHED 1883*
Members
-
•
^
I
as
Y'
"
'Y
•
Y
.
X
-
IY
6
The Commercial and Financial Chronicle
(2386)
No
of individuals is better, pletion of the Free World's fuel
than .the industrialists supplies by explosive demand, by
of the Free World to acquire tne
seizure, by sabotage,, or by. na-.
proper understanding and to act tionalization, is crowding us inupon it.
And in no area of world exorably toward destruction.
Providing Energy Self-Sufficiency
group
prepared-
'
To Permit Economic Survival
interest
By JOHN JAY HOPKINS*
I
President and Chairman, General Dynamics Corporation
In
we face in respect to energy is so
short, that we must pool oar -atomic
die/' Mr. Hopkins calls -for the immediate estab-
f
resources or
j*. -
for
k
f
resources,
well
as
immediate, short-range
an
as
.
first
here at the world's
international
major
trial conference
in
the
hisiory
fleets
atomic
on
the
of
energy
world
re-
-
theoretical
search.
for
getic
closely
men
Much
,f
«
the
Free
Does
the
and
to
to-, needed
the
The
a
of
jonn
and
transcends
aspects,
knowledge.
mere
-
'
Your
very
presence
here
is,
then,
a
manifest
of
industrial
statesmanship—an act of leader¬
ship. ■
■
'
with
three-day
a
work
schedule, and having already done
cur
homework
and
English
in
with
both
the
Frencn
help
of
a
work
and
extrapolations
of
our
basic
text
in terms of the present world
po¬
litical and economic crisis.
I
think
and
that
it
be truthfully
sweeping scientific
may
the
technical
past
glorious
years,
world
must
situation
World.
tions
the
latter
be
now
Concern
and
with
penalties
leadership
must
be
revolutions
of
this
nish
those
:
terms
vide
of
emerge
If
broaden
the
of
distance
obliga¬
dimension
which
♦An
address
by Mr. Hopkins before
0rd International Conference of Man¬
ufacturers, ^sponsored by - the
National
the
Association
Nov.
of
Manufacturers, New York
29,
1956.
*
is
beyond
must
I
XnHd
rfoA ?? ^dustri^izaUon
and that
Sf^uvetconJnies^£e
exception
committed
to
further, industrial expansion, then
the consumption pattern of fossil
•
f
t.
^Prv
evre<H
Rnnn
pvpn
future
oil and
coal,
natural
gas
.-k:-..,
Vnided
nuclear
Time
the
under¬
I
suffice.
time
StMg
economic
sizable part
a
needs.
A significant index
rie-
imr\r
of the de-
on/avrfu"
inonr
.
the prediction that
UlfiOs
even-
would
be?
in
deadline for the Free World Will
far
fear,-
shorter.
the
-
pur^world
date
or
fuel
with
us
.
.
all
byf the States
earlv
United
major
-
We
of
so
shall
find, I
depletion "and
to
nations
that
suggest
are
like
We
lightning speed.
-
J
-
■
-
j
T
-
.
r '
.
-ri.•
T
of
or
are
»
may
postu-
to
seems
-
pendulum.
The fde-
:
clear fuels.
able
coal
;fv j
A
Pocono Alfotels Units
,
•
LANCASTER
conversion process. Moreover, any
such development would require
large capital outlays for plants
operation and maintenance These
would have a profound effect-on
the umt
Curtis
bafic.- work
Wide
SCRANTON
"The
paper,
Industrial
of
Role
Energy-fcoal
in-
World
Nuclear
oil
iand
have" at
—j
1~
—
SSlW
—----
evefbe
win
« Pjaced as fuels for light -transportation^.home space heating and
machine lubrication
to name
only a few of their many impor-
aa
petrofeum"as chemicaf'com'
poTeStel ^p^
bli rations
p
her
^iu
industries
.
It
.
...
outside
the
ld
w
being
seem.
waste^uch-versatile
piaceabje
-
mineral
which
uges
cases
indeed,
in
a
future-generations
.me against
.
Dower
petro-chemical; and
the
'
and
irre-
in
by
resources
be
can
nuciear fuels
?ven
supplied
;
»
>
Stock
•
j
conve^.(; their
.
PH 375
fronnmie«?
f
~
nroeressivelv raoid d-Dletion
tab^clunue
and
petroleum
in
^
to
Grinnell Corp.
v
^
i
Parchment
Keyes Fibre Co.
-
|
BOENNING & CO.
Established
1914
1529 Walnut Street
N. Y. Phone X
COrtlandt 7-6814
must inevT?
iLSe ext?lme
the- tions of explosive violence among
Kalamazoo Vegetable
,.
will
bTSt^Ss to^Je
.
by
Continuing Interest in
Excharige
Pennsylvania Bldg., Philadelphia
Teletype
unmter
an
underdeveloped nations,., to
agrarian economies
jn
ple.
"
•
.
-
of
the
-r..
115
Broadway
New York 6,
CO 7-1200
Philadelphia 2, Pa.
N. Y.
-
.LO 8-0900
ATT Teletype PH 30
world's
•
What then is &
Publishing 3-4% Pfd;
Phila.-Balt.
Wnter-
an
postulating
population growth all over the
worj^—an(j an irresistible urge,
-
energy
tion
peo¬
V
reasonable geo¬
logical "time scheme"?
If world
demand and world popula¬
growth exhibit the same pat¬
as they have since
tern of increase
1900, I would venturd&to
the
limit
25 years
We
Members
•
fuel and also
Prlce of
Mbit economic growth, ; , V
"As I havp pointed out in the
nu-
Fischer & Porter Inc. *
\
Samuel K. Phillips & Co,
PHILADELPHIA 9
ALLENTOWN
first glance. This is because of
the tremendous energy loss in any
^ Current estimates of the avail- social unrest and to create situa-
John B. Stetson Pfd. " !
Reading Co. 3%s, 1995
•
tensive as,one would imagine at
-
fanatical, sabotage.: freedom is possible only with
confronted, it
*
PITTSBURGH
may be recovered are not as ex-
votable rate of increase.: Dynamic
f
,
-.-Indeed, I think we
Guarantee.Bank & Trust Co.
INCORPORATED
economic
bious possibility-at best, industrial
ence.
.,/{'
because, to the -geo-
Buck Hills Falls Co.
STROUD & COMPANY
the
on
Even the much '
reserves and shale oil
deposits from which hydrocarbons
three-fourths
'
•
effect
the advent of nuclear power, sub-
energy
military
NEW 10RK
shore" installation, the unit cost of
ruipled_ flow of Middle Eastermqil
BANK STOCKS
,
more scarce
of
me^jwith an economic "pit'? and
a
largest Plihidelvhia Banks
WC"S
,
or coal they cannot do what
they want, when they want. With
an
ization,
;
Sl"Ce
conditions for prospecting
more difficult, such as in "off-
um
demand, -01; of tion is to be capable of remaining
.the imminent possibility of a mili-^ indefinitely self-sufficient with retary coup, or of selfish national- spect to- energy. ,-Such economic
PHILADELPHIA
IP
y
marines—and nations—have hope expansion of this region cannot.
rushing of a hew^ measure of independ*^...continue at an economically ia^
inaccessibility*
resoureey
,
is
exploding
Send for comparison
of 11
of
..laical the negative effects offbe late hat of an ultimate economic
time scheme", must
the
applied
objective
inaustriahzed na-
Maintained in all
n°miCaUy ^i^are continually '
Petr°le,Um- &
course, new wells
of one hundred
years, submarinesTn at least one respect:
apprehensive that the actual :'As long as they depend on petrole-
This
■
day, or more:than 3 billion barrels
It would appear that the
United States possesses no more
than 20 to 25- years' supply of ecora year.
nature
upon
Trading Markets
t
-
" ic
,clear power:" A visible symbol
deadline
re- ■
fuels is averaging at present
something like 9,000,000 barrels a
gree
U-• tViA I
say that a quite safe. this atomic power ''revolution" is
unspectacular estimate of this the USS
Nautilus.
I should like
am
be
its power
of
for
energy
of American concern with
ohnrto CfC*
the1 imminent energy shortage is
limit
energy.
economic
'
American consumption of liquid
x
should
and
United- States has estimated
bsmdinR
serves-of 75 billion barrels.
unless supported'by naval vessels authorized for con-;
.employment of rpi-• structton will be prop-lied by nu- v
cease
offshore," 13 perhaps 200 bikbarrels. Of this amount the
ing
U<5i
Latin America.
geologically
are
7Zrs oVconv'n^l'Tud-n^ust,
1c
i^
all
_
nrpSi r^nW Srowth of the -United. States and
"the
(2)'
throughout ,the world
massive
clear
under¬
V
^
(1)
begin to decline and
tually
should
*>11
frighteningly
™mot £
!sZL7eot
»
over-all
which
velopment
understanding is worthwhile
•.
present-
Geological
ttrwinK
notrnw/I
exhaustion,
'
so
fe
resources
perfectly safe to postulate
maximum
a
rapid rate, the
is
LT th^Lvt C£>W and
basic/without
Schemes
It
not, in my opinion,
well
enough. Understanding is, indeed,
urgently
required; ;„but
standing .alone will not
schemes1"
and
a
schedule
ls so remote become deeper, pools
by 1975 or 1980, begin to rely upon
.the
individual
"time
Politico
r
.
our
scheme/^'''00 * 6 c 0 n 0
only if. it is antecedent to? action.
Active
two
geological time scheme,'-and
standing, it will have done well.
For
is
.
two
expandng at
f"flf r-afwrnJt fro tSJnLlarSer coal
'dan-
of action.
our course
also
unwisely I am -American prospecting costs have'
From
now
on,
I believe, our reserves
"
•
:
<
survival, as individuals and* as,.<;/ • ;Cv -^
^
nations, must be conditional upon
Pending U. S. A. Energy Deficit,
modern
But
and
^ to
political1^
aefme
national prod-
gross
time
hibitinS
considerations
develop
to
a
increase - of nearly 4% each
year, or for the fact that the use
net
ques-
these-
definite pattern does
from which, it -seems to-
serve
govern
particular
Conference
our
most
°»
will
lowance for
S SwS oil mUst inCreaSe sharp,y and must'
cont^ary to the truth of the wor d therefore, have a consequent in-
the, present
may
Without making any al-
sources.
&eYieratl<jns. Nothing, it seems to
day
which,
in
military ■ material, pro¬
physical security from ag¬
this
na-
combined to
?£re', tueVresoJrSs
tl0rlal ™el .res°urces
a
we
I
re-
peace
the
problem
a
of
reflect
outline,,
products
(
Const
a
Tt isyexceedmsly:
answer
energy
being brought in, and it is difficult
to. estimate accurately "offshore"
led some of-us reserves,..but it is significant that
This has
world' reserves.
a
tho
of
gression.
to
portend,
in conventional
*uels attd tbe amoupt ,of proven
.
to all nations of the Free
common
of all
ex-
™ternational\?£b®co£^
ics and humanities fnr
econ o m
volved,
of
ultimately
economic
today, the need for wise and ef¬
me,
fective leadership, based upon an:
understanding
con-
the
gerously
unstable
picture.:: Once, however, we have
we
must
the dual t>remise
stripped away the host of vari-Aofrofffff
ables
which obscures '"the basic
achievement
may
the constricted
era!have all but annihilated
thqse
traditional concepts of time and
City,
"break-
faming and
world?
which
paper,
"The World relevance to the industrialist
for,
Wide Industrial Role of Nuclear
essentially, the entire basic re¬
Energy," I am sure little or noth¬ sponsibility for the maintenance
ing would be gained by a mere of a nation's economic
post.re
reprise.
I - shall deal,- therefore, belongs to that nation's industrial
tn an abbreviated fashion with leaders.
They must manage, prof¬
certain ideas and conclusions that
itably : and
economicallyjl their
are
implicit in the material we own
businesses; they must ad¬
have
studied.
Further, I
shall vance the material well-being of
make
what
I - regard
as
logical their nation; and they must fur¬
raid
the
Does the Free World have
the
and
sentimental
well be not
merely short-sighted but, indeed,
a
most dangerous attachment. in
Hopkins
J ay
to face
historic, precedents,
to
the
to
face
tdo
or
of
to
"
oil? Ihave"f,I
techniques have all
crisis
resources1 ncrease both the supply of i03s[l
human
achieve
and
Hemisphere
would say, a rapidly approaching
diort. The estimated reservesof the
existing Western Hemisphere both discovpart,ally tred and undiscovered, not mclud-
rate
have ' the
fashion. For they are compounded1
of those complex social,
implacable foe that
an
rigid
devotion
logical
basic
too
or
understanding
which, in its
World is
Free
with such
be
only
through that
Faced
World
Western
the
1; tions in any specific or objective
Foundation
,
that this lead¬
Western
the
Strengthen
achieved
intuitive
* extens've *during
snf
spiritual fortitude to seek the
action
not world domination.
a
and
the
respect
lessening of political and military
welfare—
world
mean
of
energy-needs
trophe?
I
—
be-
quent world-wide economic catas-
gnition
can
have
throuehs" that: will avert
atomic leader-
ership
Free
material
aifficult
r eco
World
Toad ^iow^carried by^ coal
and
bound
scheme"
partially-by
fuels
econ€)mics
.
the past i5
ficient "lead time" to make'
years. - New exploration methods,
giant
scientific
strides ^reauired1 new and more ef^ieht stripping
before nuclear enerev can assume*10* what had been, considered-exa
substantial bart
the lher^v; bausted-wells or fields, and -Vastly
Does
of
and
done
wide energy
view"
and
effective
h i p,
be
prevailing view. The world view
must
prevail.
And
by
"world
a
.
Thursday, December 6, 1956
.
.
of liquid fuel, because of various
economic and military factors, is
v;
itu-'Rons It T q^ite true that dlt
LnYcxTo^^to^v'r erosive*" jn6-" coveries of new petroleum, coal
ternational polftrcal sftuaiito"',and natural gas fields have b2en
industrial
n
must
a
time
arid distribution
experimental,
mestic view may no longer be the
more ener¬
more
so
are
that
and
gether in a physical, as well as
economic, sense that the do¬
of
urgent
need
nations
all
determined
fore the massive potentials of
emergency
to
obvious
..geological
conventional
has thus far lagged behifrd
power
reveals
schemes"
,,Coai and Oil Are Finite
,
The
■
"
be
-
is
general acceptance but
generation ago. It must now
one
"time
of
;
possess/
we
an
an
awareness
the
indus¬
these
of each
darkly ominous picture:
potentials
energy
nucleus,
brief examination
a
the
-
extent
in
were
more
in
«
program.
Our presence
than
united power re-
a new
atomic
by 1980 will require nuclear-energy for a sizable part of its
power needs,-and that the Western nations face a much more
immediate and urgent problem. Author depicts this as a longrange
program
to eradicate poverty and equalize energy
.
great
so
economic and scientific Free World -QrganideTelopment to meet the dnal threat of
rapidly diminishing fossil fuels and enemy seizures of oil and
coal deposits. General Dynamics head avers that the U. S. A.
lishment of
zation
the
of the atomic
Contending "that the crisis
leadership
needed
of energy resources.
area
great, and time
such
desperately
[
[*
is
.
year
is
say
1980—less
awayk "
,
thai
than
.
-
have
already rpredicated^ a
geological time scale'of but 20 to
25
for the United States,
sharply increasing unit
energy, before we
see
beginnings of an economy of
years
without
costs
the
for
Continued
on
page
32
Volume
184
Number
5592
.
.
.
The Commercial and Financial Chronicle
(2387)
copious
Tankers
Away
steel
supply
place
tMs
position*»
By IRA U. COBLEIGH
Second
in
r.;,
size
•
-
-White shipbuilding has/traditionally been a "feast or famine"
looked
Ipusiness, NND has shown
company in an excellent competi-
building
a
pleas-
so
good/And
as
7
the maior
independent, Newport News Shipmay
is the company
discussion today
be moving into th-3
mg , stability
of earning power best decade of its
long and honhaving operated in the black for ored history. Earnings of above
$7
Newport News Shipbuilding— 29 years in a row and paid some a share (after most
conservative
big, integrated, efficiently run, and dividends in each year since 1931.
bookkeeping allowances for con^
•
selected
we
Enterprise Economist
for
—
Some consideration of the critical
ship shortage created by
the Suez stoppage, and a swift look at a major American
enterprise dedicated to the correction of this shortage—
Newport News Shipbuilding and Dry Dock Co.
now
looking eagerly forward to
very
bright future.
The
-
-
plant at
marvelously
Newport News is
over
225
laid
acres
out,
spreading
of land with
a
very
and
time.
vage and remove the 48 hulls and
.
hulks that block the
Suez
Canal;
Now
and to restore
water
in
this
burgeoning ship
(commercial cargo and
building
wa/to &
useful-'
-
two
seven- wavs
these
these
and seven- ways.'
are
wa-
quar-
^nf
1956 is not £°ing to be
able
_
at ^he'ven^eastsal-' builiingCeVer toown^uring pelce teVfrontage"of /mile"and'a
the
least, to
sal^ bmicing ever Known.aunng peace-ter
million,
a
?
large enough to a^commo-
^^the^fg^est-0aircraft^carriers"
,o®ly Bo/rn/n owne/ Na/
as
last
year
a profitwhen $122V2 mil-
t+c
possible for 1957;
"cash
flow"
earninrj
"—u
outstanding (sole capilaliza- ing visU of expanding future ovcapitalizavista
year the prospect dersand rising profit ratios, there/j
is fpr a per share net of" around good" ne ws" at°NewpVrV*Ne ws"
84-75 with a regular dividend of
moi\
"1W*
tior})- For thi-s
-
HellOr
News-Shipbuilding-
tmrcofiio
seem
actual
*
** extra'
■
witn
lipn of .gross A<£?AnoeSS deAvpr^S ru.nninS well over $10 a shard.:
1
earnings of $6.03, of.which $3 With a "hep" management, a fin3
wai
oleAAn dividends on balance sheet, the simplest po:
of the 800,000 shares
comsible
aach ol.tlJe 800,000 shares of com- sible capi+"1i~"+i's~ and" an eiis>,
of
capitalization, —A
!?
advantage since, because of highef
tingencies)
^QVou-inay well inquire why it is
quarter that; with earnings showing such
a-
1955,- NND
With J
has
its market action
), two Grace liners, a lot of recently. With a4" 1956 range be- .-.SAN FRANCISCO, Cal.—Marc^
Britain, " Japan and West"
F. Hellman, Senior Partner of J.
government, work,
including
a
tween 50 and 89V2 the current
crazy..' The Germany
are - the
Big Three in
plane- carrier, plus construction, quotg might seem a generous ap- Barth & Co., 404 Montgomery
*e c o n -o m i ct
ship""c6nstructioh with the LL S; y uwvT"
,
t
yy«r V.f s?"cluuJs
g ains Nasser ranking 10th flast vearV accountWlth the collaboration of Westing- praisal of this equity, m a market Street, members of the New Yorlc
and
San
Francisco
Stock
Ex¬
to re-" ing for less than 2%/of world/house Electric, of the first neucle- noticeably devoid of bullish ena re Dy graba'i4 bv gran nrodnrtion (Yd during 1944 we: opip power plant for a major sut- thusjasm. The investor attraction, changes, announced that the firm
iuction. (Yet
production. (YU during 1944 we
\
.
f.
.
face craft. «
Such a ,,nit might well however/ is found in the future. of
a unit might well
however, is fourid n the future,
Heller, Bruce & Co. and all c 2
worte/This
is -Great
lougSt
E®
n'af, 'couM. alTof 'to^^v!^in^™awor?dv5?;12?5,l!5
easily
U. Cobleifh
Ira
been
bv
negotiation
negotiation
have
turned
temDerate' vantaee
w^Jt^m powers;
nLore-
with
with
out
last
vear
however'Possess
achieved
.Western
over
-=-we can
while the
a
V•
do
real
verv
foreien
We
ad-
vards
todav
ntm/
build faster. Monv overMany
1"
-pulsion of
^P")- EncQwaged^by Navy requlmnents'its
commercial vessel; including the modernizing and
i,ni' shouId the next Congress perhaps atom powering of a quite
authorize an atom driven plane outmoded fleet; fanned by the
carrier, Newportshould be in line aforementioned frantic demand
„
x
\u.
a
•
/,
»
mayhem he has created seasw yards are booked solid
3
?
NND does not confine itself' to
by inciting invasion, and by sabo- the next three
years,
while we.;
shipbuilding exclusively.
While
taging thi3 vital artery is bound to. can deliver, on a new
order, with70% of its gross now comes from
harm Egypt,
relatively even more" in a year's time. //
y
v '
'
this. division, ship conversion acthan it harms the essential marine
for:An ^
^
ronfinp1t«Pi
,
t^ade
was
of
a
Western
Europe. Egypt
country but it was
poor
lilrXI,,
mnvQ
Be
that
it
as
used to
and
of
Co.
V^U.
u.
oil
petroleum
from
other
Bethlehem
S'ards^^nd
(if
shipyarcls
and
ust
r
be
The
they
c**e*t
today,
most
category
built
is
and
typical
the
them
World
>
by
War
million
Eleven
captive
and
American
million
President
for
istence
has
in the
tion
and
been
since
ojjer oj securities for sale
an
in
municipal
with
and
offices
in
apiece.
;
or
solicitation of
in
"
x
.
in
a
that
letter
this
1
to
his
merger
j
:
clients
an
/
.
"
'
.
/
will
Postwar, this
price, and in 1954
clients
of
•
4V2% Convertible Subordinated Debentures, due December 15,1981
flag operation)
at aso.
Right now the same
cost
*."/'"
$2.8 million
you
' flag
running; ; and
foreign flag operation one
such might command $4: million.
Convertible into Common Stock at $54per share
before December 15t 1966 and at
for
.
~
1
on or
higher prices thereafter, conversion
prices being subject to adjustment under certain circumstances.
*
the
scarcity of sea-going
shipping capacity in oil: .'And the
situation, if anything, is tighter
general
boats
cargo
The Company has
com¬
manding the highest charter
history).
issued to holders of its outstanding Common Stock transferable
warrants, expiring Decenaber 19» 1956,
rates
evidencing rights to subscribe for these Deben¬
tures, at the rate of $100 principal amount of Debentures for each 25 shares held and at
in
the price set forth
Thus, quite logically, if oil is
screaming to be transported, and
below, all
as more
fully set forth in the prospectus. Debentures
may
,
.
,
.
craft
to do
same
hard
are
be ofiered
by the underwriters
as
set
forth in the prospectus.
to find
and
urgently needed, they become
No. 1 priority in the
shipyards
a
of
the world
British, German,
Japanese and American. Only this
—
week
oil
representatives
companies
of
in
met
15
major
New
to work out the details of
Subscription Price 100%
York
stepping
shipments of Venezuelan and
North American oil to Britain and
France. Before this we were de¬
up
livering 300,000 barrels to Europe
a day; and now we
must step this
Suez reopens.
Well, where will
tonnage?
There are
the
get
more
than
40
T-2
the "moth ball
surely,
be
building
Right
yards,
30
21
with
Copies oj the .prospectus
writers named in the
map
he obtained from such of the undersigned (who are among the under¬
as mag legally/ offer these securities under applicable securities laws.
prospectus)
o.k.
ernment
gency
left
in
Dillon, Read & Co. Inc.
These will,
activated.
the only
But
answer
The First Boston Corporation
tonnage.
there
are
tankers
a
On
is
we
not
under
in
American
Clyth & Co., Inc.
on
order; and
Maritime Commis¬
top of this, the gov¬
about emer¬
of
a
Merrill
Glore, Forgan & Co.
Lynch, Pierce, Fenner & Beane
Smith, Barney & Co.
White, Weld & Co.
Dean Witter & Co.
whole
fleet
(perhaps 300) of 60,000 ton
tankers, designed to ply between
here and Europe; or around Good
Hope as though Suez had never
been built.
Eastman Dillon, Union Securities & Co.
Lazard Freres & Co.
talking
construction
Kuhn, Loeb & Co.
con¬
more
awaiting
sion
run
new
now
struction
tankers
fleet."
swiftly
the long
for
is
..
by at least 200,000 barrels until
up
both
offer to buy securities.
,
(for
This, all adds up to the
Stone & Webster Securities
~
4
-
Corporation
-1
facilities for individual and institutional
The National Cash Register Company
-
in
4
stated
proviZ.3
•
„
this
hundreds
Fran¬
g eater and improved services ar. I
$28,170,500
.
ex¬
facte?
corporate
San
December 5, 1956
..
'"-■/•A'
wsrj
Mr. Hellma
worH
cost of about
a
or a
its
major
a
cisco and New York.
Hie
the
xwi
1924
underwriting and distribu¬
of
bonds
New Issue
American
(•with
and
spurred by commercial fleet additions and modernization (24 units
for Grace Line, 33 for American
IllCm
ment
in
t,J,e
tanker./We
the
II, at
craft would
is
carriers,
Lines, and a replaceCISX116
aging iHnti XV. a vxx
America of
eluding those suitable for water U. S. Lines) — impelled by all
power installations making up the of these demands, peacetime shipbalance. /
building in America has never
represent
.
you could have picked one up
Such
com-
10%, with machiner.y, castings, pressuring equipment and uyuxauiic turbines, inIllVllt
axiu
hydraulic LUlUXIieS, 111-
This announcement is not
sup¬
are
unit
T-2
craft declined in
for
Steel.
XU70
over
bauxite,
Which
of the goods on order
shipyards of the world
the
$3
a
10%
some
SUIIlt;
for
50%
some
i
of
scarce*
shipping
in
Bethlehem Shipbuilding
which dCL'UUlHS for
WIUU1 accounts 1UI
counts
new
and
formed
+1
tankers, impelled of the need
millions of tons by
iron
ore
wiEj
merged
day which
a
sources.
tolls last year;
very
Mfuiphpryv^hfnhniMina
.
^ the-net sales °f its parent
brings us smack up to^ todav's
topic.
Tankers paid 65% of the
Suez
J
for
have
Heller, Bruce & Co.
glide through Suez in the
tankers, glides no more;
the
plied
the''fat
may,
Farouk), is in the fire
1,200,000 barrels of
holds
...
tanks!^British.
tinkers thain Russian
not the
T,
„
TT
u..
personnel
his firm.
firm;.
8
The Commercial and Financial Chronicle
(2388)
Selburn
Bailey
Also
bert
Recommendations & Literature
Ceco
Weeks,
uranium
in
23)—Comments
(No.
contracts, atomic merchant ship program, progress
Dover
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
zine
published
Street,
by Brooks
16, Mien.
Detroit
in
Monthly
letter
investment
able is current Foreign Letter.
Burnham and
Also avail-
—
Magazine"—$1
TB-4,
& Co.,
Christiana
Magazine,
Exchange
year—The
per
Securities
Dept.
Policy
Meeds,
&
Montgomery
Street,
Japanese Stocks
—
Witter
1957—Study—Dean
for
Francisco
Sari
Current information
Co.,
&
—
showing
used in
yield
com¬
National
York 4,
performance
Quotation
over
Inc;,
Bureau,
a
46
Broad
of
Stocks
du
securities
13-year period —
Front Street, New
Suez and
&
Incorporated,
Steel,
and
Witter
115
tor
income,
packages—Francis
stock
Wall
Chemical
and
Kelsey Hayes Wheel.
Wall
Petroleum
Gas
Bonds—Reoort— Dean
Revenue
Report — General
New York 5, N. Y.
Investing
—
Corporation
Street,
American
Other
and
Co., 14 Wall Street, New York 5, N. Y.
Street,
Alabama
Bulletin
—
New York 5,
Corp.,
60
Corporation,
Gas
&
Broadway.
from
Georgeson & Co., 52
—
N. Y.
Aircraft
Court
16
Street,
York
Brooklyn,
N.
Y.
&
Co.,
from
high
a
low
New
...
We again suggest
you
and
your
profit in:
can
industry
is
fourth
now
largest
the
in
United
Electronic Association President, Dr. W. R. G.
from
its
$9
billion
sales
to
$15
States.
Baker, predicts
billion
by
1960.
to
5
is
York
6,
last 'fall
to
to
a
in
be found
at higher costs,
Steps have been
the company of
assure
adequate
the
of
sources
winter
inactive
delivery
raw
the
in
cement
by
during
months
fall
busy
for
and
seasons.
Although
rising
costs
materials will
problem,
Aerovox
—
Henry G. Isaacs
of
Manager
now
the
Trading
Department for Pan American Se-
Y.
N.
>
<
-
Instr.
Lab.
Corp.
Burndy Corp.
.
•
Collins
•
"»v
-
..
.
Radio
Dynamics
•
Corp.
Jack &
•
of
Amer.
price
of
labor
always be
have
increases
earnings
during
the
Heintz
P.
disappointing, resulting in a
decline in the price of the
Mr.
severe
acquired
during
the
aggressive
acquisition pha§e of the company's
history.
Earlier,
the
on
operations
theory
acquire
that
and
it
were
was
rehabili¬
Isaacs
was
Vice-President
.
-
are
Latest
in the black.
now
The remain¬
ing few plants are expected to be
operating profitably soon.
;
Earnings
Mitchel, Schreiber, Watts
Effective
share
declined
from $0.66 in fiscal 1955 to $0.22
of
in
&
fiscal
per
First
1956.
quarter
re¬
of
at
the
share.
the
annual
company
secutive
thus
fice at
the firm
name
Mitchel
Broadway, New York City,
14
Wall Street
will be the
sole office of the firm.
Charles E. Haydock, Jr., Fred H.
general partners, and
Henry B. Bjorkman, limited part¬
Jorgensen,
retired
from
Haydock,
Schreiber, Mitchel & Watts, Nov.
ner,
of $0.20 per
February, 1957,
30.
will have paid con¬
becoming
1
Schreiber,
changed to Mitchel,
has been discontinued and the of¬
rate
dividends for
120
at
$0.181/2,
Effective
was
Schreiber, Watts & Co. The office
ports, for the period ending Aug.
31, 1956, reveal a net profit per
share
Dec.
Haydock,
Watts
five years,
available
for
Dominick
in¬
to
Admit
plants than to construct vestment
; John G.
W. Husted, Jr. of Lon¬
by
many
fiduciaries.
new plants.
While this assumption Besides
being currently available don, England: on Jan. 1 will be¬
is proving true,' the tithe element
come1; a; partner in Dominick &
at depressed levels,' the /common
was
miscalculated.
Management
Dominick, 14 Wall Street, New
has for the past year or so devoted stock
appears
attractive for its York City, members of the New
time
to
the
modernization
of
DEPENDABLE
long-term growth potential.
-
It is York
Stock
Exchange.
MARKETS
Mallory
Sprague Electric
WITH DEEP
THE
Troster, Singer & Co.
York
Security
Place
Dealers
•
HAnover 2-2400
Teletypes
Private
Wires
York
NY
ANNOUNCE
PARTNER
TUESDAY, DECEMBER 4, 1956
To
DETROIT
GRAND
DALLAS
HARTFORD
PHILADELPHIA
PITTSBURGH
ST.
SAN
RAPIDS
WE
OUR
JOHN J. O'KANE, JR.
6, N. Y.
CHICAGO
LOUIS
OF
1-376-377-378
CLEVELAND
,
SORROW
DEATH
Association
New
HOUSTON
LOS
ANGELES
FRANCISCO
of'
reports
from
the First Southern Corporation. In the
actual plant sites are that success past he
was
in the investment
has been achieved and most plants business in Norfolk, Va.
stock.
R.
•
were
Henry G. Isaacs
curities, 561 Northeast 79th Street.
Prior to joining Pan
American,
giving proof of
quarter beginning December, 1956. the progress being made. Current
thinking is that full year results
Over-expansion, the major cause
of declining earnings in the past could exceed $0.40 per share and
year,
.resulted
in
unprofitable reach much higher in the follow¬
operations at several older plants ing year. Dividends are being paid
its
Pfd.
Perkin-Elmer
•
New
on a
Hycon Mfg.
•
Members
them
profitable basis.
Electronic Associates
•
Trinity
these plants and placing
tate older
Aircraft-Radio
•
on
cheaper to
Corp.
Airborne
•
impact
based
Along With Many Others, We Trade and Position:
74
is
2
page
13
of
of
longer exists.
no
and
Electronic Stocks
•
MIAMI, Fla.
Mercantile Bank Building, Dallas 1, Texas.
Broadway,
to. import cement
115
6, N. Y.
clients
•
Shu-
Corporation—Bulletin—J. R. Williston & Co.,
placing orders for cement
Co.—Memorandum—Goodbody
New
DEALERS
increase
&
Circle Tower, Indianapolis 4, Ind.
Inc.,
been
effected for the company's
products and shall reveal their full
an
Mgr. for Pan Amer.
Cohn
over-expansion, cement shortage
As far as the investment com¬
and rising costs. The cement short¬
munity was concerned, initial re¬
age, which required the company sults of this rehabilitation phase
a
Thi»
Henry Isaacs Trading
The Security I Like Best
summer
Oil
States
120
Its
Continued
taken
Pipe and Construction Company—Bulletin—Security
Adjustment
Aztec
the
I.
Oils—Study—Bache & Co., 36 Wall Street,
5, N. Y. Also available are bulletins on Bethlehem
Concrete Pile, Universal
Cyclops: Steel,
Bridge
Aberdeen
of
of | purchase.
Co., 1 Wall Street, New York 5, N. Y.
Potash &
&
Co.,
time
containing lists
growth and trading-
recent
Turnpike,
&
Many
certain requirements to be
at the
;
; ;
Co.—Memorandum—Kiser,
Raymond
American
Bros.
Company, Inc.—Analysis—Unlisted Trad¬
:
Tool
&
Company,
United
Domestic
New York
Wisconsin.
added
Y.
N. Y.
6,
west
South
123
Co., 14 Wall Street, New York 5, N. Y.
&
Christmas—Suggested
Pont
sylvania, Rhode Island, Texas and
Today's Investor—Pamphlet
Upham
for
&
Company,
Philadelphia 9, Pa.
for
selected
Harris,
5, N.
York
placed
list of any State.
sota, Missouri, New Jersey, New
York, North Carolina, Ohio, Penn¬
a
& Co., 50 Broadway,
Company—Analysis—Sutro
New
determined, the
Trinity Universal Insurance Company—Analysis—First South¬
Street,
Guide
60
is
Uses—Quarterly journal of the Tin Research In¬
stitute—available on request—Tin Research Institute, Inc.,
492 West Sixth Avenue. Columbus 1, Ohio.
"
N. Y.
banks—Stroud
Pocket
Co.,
&
available
Also available is an analysis of Polaroid
4, N. Y.
Machine
maker,
Tin
Philadelphia Bank Stocks—Comparison of 11 largest Philadel¬
phia
Hentz
for
stock has not been
the legal
met
Gear
Ross
and the 35 over-the-counter industrial stocks
Quotation Bureau Averages, botfe. as to
market
:>■/
Also
Y.
N.
4,
16
'However, the 4.60% Convertible
Sinking ; Fund
debentures
due
1975, referred to, were considered;
legal as of May 23, 1955 in Cali¬
fornia, Connecticut, Florida, Il¬
linois, Indiana, Iowa, Kentucky,
Massachusetts, Michigan, Minne¬
14
Diebold Inc.
Inc.—Analysis—Dreyfus
Korvette,
York
up-to-date-
York
be
can
as
common
Corp.—Memorandum—Birnbaum
Company—Analysis—H.
New
on
at
ing Dept. (Room 707), Ira Haupt & Co., Ill BroadWay, New
the National
and
the
*
.
conversion,
$1,500,000 and at 18 for
remaining $3,000,000.
So far
;
;
for
1965
1,
$1,500,000 prin¬
debentures pre-,
the second
on
study—Smith, Barney & Co.,
until June
of
sell
convertible into
are
stock
amount
sented
Richardson &
Man., Canada
James
appear
currently
for the first
14
cipal
Co.—Memorandum—Doyle, O'Connor
Oil
Marmon-IIerrington
parison between the listed industrial stocks used in the DowJones Averages
—
at
a
Street, New York 6, N Y.
Street,
Broadway,
Yamaichi Securities
an
Review
—
is
They
around 77 and
Corp.
Co., Ltd., Ill Broadway, New York 7, N. Y.
Over-the-Counter Index—Folder
J.
Mesta
45
Calif.
6,
Limited
Electric
New York
Broadway, New York 5, N. Y".
120
Investment
Ky.
Also available
Kentucky Gas Co.
2,
desiring
security,
Convertible
Sinking
attractive.
Building,
Co.—1956'.-semi-annual report—W. R. Grace &
memorandum
E.
Bissell
Co.—Bulletin—Laird,
The Bankers
Life
common
type
debentures due 1975
Fund
—
Home
The Kentucky Company, 320
—
Louisville
Manufacturing
37 Wall
Beaver
Wall Street, New York 5, N. Y.
11
N. Y.
defensive
4.60%
the
preferred '
of
For those investors
more
a
'
Chemical Stocks—Discussion in current issue of "The Exchange
&
Canada.
shares
1,040,731
stock.
Hornblower &
—
Circular
Kentucky
Co.—Detailed
&
Plastics
E.
Jefferson
J
and
Matthews &
Co., 7 Hanover Square, New York 5. N. Y.
J.
15 Broad Street, New York 5, N. Y.
Company,
-
—
—
Street, New York 5, N. Y.
y\. R. Grace &
Stocks, Insrersoll-Rand, Pullman and Budd.
View
Report
—
Company
Western
on
Tidelands
Grace
R.
Wall
Letter"—Hayden, Stone & Co., 25 Broad Street, New York
4, N. Y. Also in the same letter are discussions of Machinery
Burnham
—
Co., 135 South La Salle Street, Chicago 3, 111.
&
Investment
"Monthly
current
Analysis
179 Portage Avenue East, Winnipeg,
Royal Bank Building, Toronto, Canada.
Glasscock
W.
Buildings Stocks—Discussion
4.60% convertible debentures, 10,-
common
Companies,
and
1950 West Fort
Perkins, Inc.,
&
—
Street, New York 5,
Street,
memorandum
Sons,
Corporation
Memorandum
—
Fifth
Fraser
"Magnesium" quarterly maga¬
in
000
Ky.
2,
Corp.
South
Street, N. W., Washington 7, D. C.
Boral-Titanium—Discussion
Corporation Ltd.
Incorporated,
Louisville
Canadian
additional
on
C. Gil¬
Apartment
Co.,
Over-the-Counter
000 shares $5 cumulative
Wall
40
the
Capitalization consists of $170,notes
payable,
$6
million
Meter,
Company, Mead Johnson and A.
Products
Steel
Bond
Letter
Neptune
on
in
Market.
Company.
Cumberland
Atomic
data
are
Company, Ltd., 220 Bay Street, Toronto, Ont.,
parties the following literature:
send interested
to
in
—
issue
current
Chemical
Bethlehem Copper
will be pleased
firms mentioned
understood that the
the
in
Kawecki
Thursday, December 6, 1956
.
traded
current issue
American Stock
Ltd.—Discussion
published by
Gas
&
Investors"
Exchange, 88 Trinity Place, New York 6, N. Y.—$1 per year.
Dealer-Broker Investment
It is
Oil
"American
of
..
f.
>
JOHN
DEMPSEY-TEGELER A CD.
J.
O'KANE,
JR. &
CO.
Volume
Number 5592
184
The Commercial and Financial Chronicle
...
In
Senior Partner, Hayden, Stone & Co., New York City
rendered
with
decision
executive
problems arising each
new
making
coping
in
by the growing
year
use
of
other.
operations research, motivational research and electronic com¬
Mr. Jarvis and is found to have
puters is evaluated by
that
this
an
more
OR's
Where
time in research.
generally think of research
being tied to the development
of a new product emanating from
a test tube or a maze of intricate
devices pref-
as
pilot
a
plant.
the
In
business world
of today a vast
of
area
re¬
Berably housed
has
search
been
accom¬
plished before
or
called?
It
"the
of
dollars
on
the pilot plant.
1
...
to
spend millions
N. Leonard Jarvis
.
or
as
has
it frequently is
defined
been
Growth
is
Since
1951
business
wonder
achieving
objectives."
as
If
this sounds high falutin
as
of
just think
the quantitative applica¬
Chicago, and col¬
leges and universities like N. Y.U.
and others
The quan¬
are
Operations
America
training
Research
here
now
This
'
-
today's
growing
understandable
is
in
the
face of current competitive condi¬
tions, mounting labor and material
costs.
When you get right down
to it, executives are paid to make
Solving
G.E.'s
OR
that
sal¬
New
grown
to
over
sales problem.
began
sales
man
topics
as
"linear
should call
mathe¬
signment of personnel and utiliza¬
additional
is
there
matics
more
It
is
than
method of tion
of
facilities
"inventory
devising experiments that ques¬ management." They hold sessions,
tion existing beliefs and reasoning for instance,
on
the techniques
to
OR.
a
on
limited information.
At
involved
in
the
or
various
mathe¬
the surface matical theories used or the meth¬
the basic variables. It seeks no ods employed in recognizing prob¬
conclusions
except those that can
lems,
analyzing
them,
accounts
a
quantitatively expressed with and classifying
high degree of
rationality.
application.
lous.
:!H:;
Line
programming has also been
by oil companies to deter¬
mine optimum product mix
pos¬
used
sible at
a particular
refinery. Com¬
panies have used it to reduce
freight costs by studying which of
a
corporation's several plants
should
collecting
a
was
our
sales
the
on
this:
on
force
in
sales?
job
'
add
we
order
The
to
erations in
on
number of calls in
of
number
of
a
company analyzed the operations
of
one
railroad's
classification
made in these areas,
market.
yard and
spe¬
data, testing and
Enough companies to
do
not
depend
number
of
on
calls."
yard.
was
hallmark
an
The purpose of the analysis
were
of
that affect the
freight
cars
Continued
were
executive.
even
executives
and
don't
human
are
lute
of
since
However,
information
tions
will
non-rational
factors
and
to
future,
based
diversify
to
a
both
an
art
established
an
important
an
next
a new
market,
new
have
upon
as an
offer to sell,
or as a
solicitation of
an
offer to buy
;
December 5, 1956
NEW ISSUE
on
product,
where to
locate a new plant, whether to ex¬
pand a sales force, whether to
invest
in
expensive
electronic
equipment, even how to hold that
promising young Executive VicePresident or keep the plant Man¬
ager happy, are all factors that
will
circumstances to he construed
of these securities. The offering is made only by the Prospectus.
rational
as
Deciding whether
business, to launch
invade
no
any
1,000,000 Shares
with the XYZ Corpora¬
merge
tion,
become
This announcement is under
abso¬
condi¬
the
be
well
as
and
what
in
must
science.
a
on
like
be
their decisions
have
year's
ments.
All
which
and
Vast
sums
spent
in
state¬
areas
Common Stock
(without nominal
or par
value)
upon
spending
are
time
more
researching.
of
money
are
being
corporations large and
to compile scien¬
by
small
are
Company
bearing
earnings
businesses
more
these
Public Service Electric and Gas
order
tifically the facts that will moti¬
the
vate
correct
decision.
Operations Research
the most dramatic—and
One of
newest
and
—
of
research
techniques
currently much in vogue,
appropriately
named
"Operations Research." Don't let
one
has
been
the
title
scare
the
that
you.
Or, the fact
administrators
business medicine
new
most
with
are
of
Dean Witter 8C Co
"long hairs" — Ph.D.s
previous business training
part
no
or
experience. They are instead
economists, physicists, mathemati¬
even
Reynolds 8C Co., Inc
psychologists,
cians,
an
Lehman Brothers
this
for the
biologists.
astronomers;
Their product is
applied science that may some
be considered a branch of
Bear, Stearns 8C Co.
day
engineering. Steadily it is being
applied to all the functions of
business
from
how
to
Laurence M. Marks 8C Co
operate
equipment to how a
salesman
apportion his time among
customers. It is used to help bal-
should
G. H. Walker 8C Co
*
An
address
by
Mr.
Jarvis
before
Homecoming
Alumni
Dean's Day, New York University School
of • Commerce,
New York City, Dec. 1,
the
6th
Annua)
1956.
the
discovered that freight
to determine what the
factors
changes in the
that
instance,
spent a large percentage of
their time in this
classification
sales changes
If
For
cars
being
calls
increase the
sible
cific geographic area and reached
the conclusion that "within
the
range
to
gain
plotted mathematical
the effectiveness of a
certain
order
company's understanding of rail¬
road problems and thus their pos¬
to
man
OR
graphs
]
Westinghouse Airbrake has used
OR studies to carry out scientific
research on several railroad op¬
and how often
Should
particular geo¬
a
area.
Railroad Problems
given period. G.E.'s prob¬
lem
supply
graphic
talent for making
right decision at the time is
the
carry
currently
affecting the sales
decisions—the
the
proved
could
he
account. Obviously, the ear¬
lier plan by management to hire
more
salesmen appeared ridicu-
ment
be
than
per
Ever since sell¬
executives have
OR
such
consider¬
this
salesman
carried without
been making educated guesses as
to how many accounts one sales¬
into
a
management
each
more
Sales Problem
1,300 and conducts regular semi¬
nars and workshops breaking the
science
that
mihg" in its lamp division to solve
during
Yet
a
of
titative part is mathematics for its
method is the method of science.
to
:
analysis proved
able
reduction
in
the
average
number oL calls was possible with¬
out affecting
sales volume.
To
General Electric Company used
what is called "linear program-
Institute
in
has
The
its best it cuts through
of
one
of
York
men.
programming"
which
really is the scheduling of mate¬
rials, machines, distribution, as¬
commonsense.
based
is
Director
in which the number of calls
smallest and compared this to
the number of calls made during
the year prior to this
study. His
was
like Armour in
ing
in
level
businesses.
Slocum,
studied each account for the
year
$30
million is being spent to pay OR
talent
and
isn't
there
nearly
enough of it to go around. This
technique is being used by every
major industry and by the leading
members
ness
Indeed, research at the executive
~
A.
man
handicap OR has today is the
that will increase their effective¬
tion
new
est
a
of OR
that
C.
question then
shortage of trained men to prac¬
tice it and yet it has been reported
elsewhere that in 1951 a mere $1
founded in 1952 with 17 interested
decision
product
Dr.
decided that the
was
was, by how much could the num¬
ber of calls be cut?
Next, the OR
the Institute, says that the great¬
study of complex
organizations aimed at identifying
the problem and giving executives
a
quantitative basis for decisions
arrived at
for
OR
scientific
the
search
number of calls could be cut with¬
out losing sales. The
in
getting this
tool
to
help men,
production and inventory. It machines, materials and dollars
companies in each. It is also being
is a newfangled approach but to behave?
Today, there are many used by the Government. How
many who have used it, it already consulting groups in the field, and does it work. Let's take
a look at
has proven a sound investment.
large accounting firms, and other some actual problems and the re¬
research
institutions sults achieved:
Exactly what is "Operations Re¬ non-profit
was
to
research tool so far is
it .might motivate the
ance
search,"
in
against
volved.
new
We
true then it
who
regarding a single
problem, it may conflict with a
company's over-all aims. Like all million was being spent for
high-powered
treatments,
there men and this sum included
are
always certain dangers in¬ aries plus overhead.
Today,
sounder executive judgment, Mr. Jarvis
presents wide variety of problems tackled, such as determining
optimum product mix possible in a refinery, merger feasibility,
plant location, railroad scheduling, and complicated tax prob¬
lems, and other areas noon which businessmen are spending
and
launched
correct decision
permitting
more
been
9
sound like
The most serious criticism
has
new
that while
exceedingly rapid Tecent growth reflecting the soundness of
such an investment. In describing these latest research tech¬
niques
situation, where the
business executive gets his infor¬
mation
from
the
OR
man
he
By N. LEONARD JAR VIS*
assist
ideal
an
a compilation of who's
industry
have
sent
a
variety of their executives, viceshould be able to tell what area
presidents, controllers, engineers,
remains in which he must exert
accountants, treasurers, purchas¬
his judgment. This is where de¬
ing officers and market research
cision-making as an art comes in analysts to the OR Institute's
and sets one executive above an¬ seminars and
workshops.
Research in Business
The
(2389)
major
move¬
through the
on
page
28
10
The Commercial and Financial Chronicle
(2390)
been
Investment
distributed.
kits
are
member
Advertising's
firm
which
with
Status—Dead
Alive?
or
.*20
Advertising executive critiques financial advertising, and offers
overdue "new look" in
ers
to
talk
the
subject of investment adver¬
tising I felt a little like the Pasha
others because they have
the
remarkable
growth
who faced his harem for the first
number
time. He knew
what
was
ex¬
pected of him
he
but
didn't
know where to
start.
I
can
though,
by. answering
start,
the
question
posed
by
my
title
"Invest¬
ment
tising
Dead
—
Alive?" The
best
to
answer
this is that in¬
Cruikshank
number of
and
animated
of
$7,000
210%
ber
now
1941
and
numbering
in¬
the
incomes
lion, is the prime
funds
mil¬
of indi¬
source
investment
this
that
I2V2
and
the
most
powerful group for spread¬
ing true "People's Capitalism."
And-—they have recognized
other fact
of
.
,
.
an¬
the
fimns
giving
are
which
in
tising techniques used so success¬
fully by
the
companies
whose
stocks they sell.
One firm, Merrill Lynch, has an
Investment Information Center in
Grand Central Terminal featuring
a 30-foot toy train.
This firm held
a
huge How to Invest Show at
Armory in New York which
an
was
firm
position.
its
to
Eight
leading
present
years ago
they
ran
vertising
full page of type in the New York
"Times" containing 6,000 words of
alive?
look
A
furnishes
the
at
part
the
of
The somnolent state of in¬
proof.
vestment
advertising is further in¬
dicated
by the number of securi¬
ties firms who do no advertising
all
at
or
only
occasionally
oil
a
Advertising Strides
first
let's
take
a
look
at
what strides have been made, and
there have been some mighty big
steps taken by this industry.
•An
inre
;>ales
of the investment
address
the
by
Mr.
Sacramento
Executive
ownership first and
secondarily the idea of buy¬
ing securities through their firm.
fraternity,
Cruikshank
be-
Advertising
Club, Nov. 27,
and
Praises New York Stock Exchange
change which during the past few
has embarked on a substan¬
years
tial
campaign
newsoaoers
the. veil
of
of
advertising in
and magazines to lift
mvstery
advertising
tized
over
budget
stocks.
fnr
the
rather famous.
the
need
educational
small
for
informative,
The
copy.
print
It drama¬
and
ad
was
headed
a
"What
Everybody Cught to Know About
Stock
Five
and
Bond
thousand
letters
ceived in two weeks.
'of
sands
the
in
ad.
150
was
It
has
A
little
still
were
re¬
Many thou¬
ordered,
were
opened
as
a
result
since
appeared
papers
and in
different
"Time."
it
reprints
accounts
new
of
Business."
over
drawing
a
year
it
Nineteen
have
seen
their
ran
film "What Makes Us Tick." Over
pieces of literature have
an
Invest¬
"
Girl's
A
Best
"The f
it
pulled
10%
more
outs
once
and
hid
nancial
headlines, austere lay¬
uninspired
themselves
pages
of
which
copy
on
the
newspapers
fi¬
are
beginning to disappear. Bright,
new, sparkling advertisements are
appearing in magazines, in the
general
news
section
of
of
some
newspa¬
Grapes."
children,
showing
pictures
of
homes, landscape plans, the places
to
see
on
world cruise.
a
%
+
Why is it, then, that investment
is only "half alive"
advertising
and
changed the
securities advertise¬
those
what
this
of
is
the
ads
underlying
regulated
of
most
and
censored
advertising today.
all
it is
Most of
beneficial and
with
all
type
needed
Canadian securities
can
which
buy through
cessfully
sold
"New
merchandise
;
Our
complete investment service
to
growth
I
mean an issue of new
securities
needed to produce the plants and
tools of
business, is sold by hun¬
of
dealers
in
markets
Yet in advertising this
chandise,
V A
on
first
you
time
advertisements
in
our
gen¬
reading financial
are
sell the "end
which
attempt
results"
to
of
investing
—the things that stock ownership
makes
possible rather than toe
securities
themselves.
foods,
companies and
companies have been
Breakfast
automobile
insurance
doing
this
for
For
years.
investment
reason
some
firms
have
ignored the approach used by one
of their
big competitors, Life In¬
companies.
surance
how
really
stock
find
out
they
to your life
talk
agent
surance
To
competitive
should
you
some
are
in¬
time about
a
investment
plan versus an
annuity type policy. Life insur¬
ance
companies have long sold
"end
result"
of
investment
a
with
life
insur¬
advertise¬
ments
featuring the college edu¬
cation, the happy retirement days
and
other things that insurance
buys. Banks are selling remodeled
homes and travel; breakfast foods
advertisement the statement which
in part says "This advertisement
is not to be construed
pany,
as
executive
are
New
are
and detergents
prettier hands.
a
the
investment
York
Stock
firms
and
Exchange
the
who
of
name
the
stock
the
and
Correspondence Department
to deal in securities
V Private
To be guaranteed
teletype service
Canada and
V
to
Mutual
small
funds
investor
blue
many
gone
from
1940
to $12
thems
a
to
offices
our
ing
in
they
their
the
Fund,
as
objective
and
their
multiple
page
tisement
giving
may
investment
address.
newspaper
of
have
the
as to
payment oj par
Membership in The Investment Dealers' Associa¬
Canada, and through our broker affiliate,
membership in leading Stock Exchanges in
Priced
to
tion of
Canada.
Fund
are
to
So
far
I
as
know,
it
Censorship
Mutual
and
funds
vestment
tential
tised
appeal
for
audience,
with
less
to
R. W. PRESSPRICH
Investment Dealers Since 1921
KING
STREET
WEST, TORONTO, CANADA
Montreal
Ottawa
Winnipeg
London
Hamilton
Vancouver
Calgary
Kitchener
Quebec
Sherbrooke
Windsor
THE ILLINOIS COMPANY
New York
December 5, 1956
CO., INC.
by the
on
*
maturity
&. CO.
IRA HAUPT &, CO.
McMASTER HUTCHINSON &. CO.
*
po¬
restriction
INCORPORATED
WM. E. POLLOCK &.
large
adver¬
LIMITED
50
in¬
be
value and dividends by
'
*
have
a
can
Continued
Company.
GREGORY & SONS
never
Screening
which
HALSEY, STUART &. CO. INC.
-
has
been attempted since.
of the Certificates are subject to authorization bv the Inferstate Commerce Commission.
Offering Circular may be obtained in any state in which this, a •mince mi it is circulate I fro n only
such of the
undersigned and other dealers as may lawfully offer these securities in such state.
FREEMAN &. COMPANY
but
certainly have bored to death
anyone who attempted to read it.
invited.
McLeod,Young,Weir & Company
legal
which
must
4.25%, according
DICK & MERLE-SMITH
a
adver¬
attention
Issuance and sale
An
Inquiries from investors
yield 4.00%
One
entire
the
caused
f187>000 annually January 1, 1753 to 1972, inclusive
endorsement by Erie Railroad
cautious
t'ris by running
overcame
prospectus
of
name
and
their
to
as
offer¬
Basically, all
brief
a
statement
Fund
just
are
underwriter
advertise is the
can
a
piece of
advertising
an
They
securities.
new
allow
a
billion this year, find
straitjacket.
as
own
Equipment Trust Certificates
unconditionally
across
the
chip issues and have
$1 billion business in
fives
limited
which
-
to
Equipment Trust of 1957
New York.
of
name
(Philadelphia Plan)
mature
com¬
underwriter.
using the approach of the big
4*/4% Serial
Department with up-to-date informa¬
major Canadian companies.
the
brief
very
success;
selling
The
Erie Railroad
by mail.
offer
an
description of
the type of business, the
price of
are
selling stronger bodies; and
clothing manufacturers are selling
United States
To
new mer¬
you must include in your
advertise
the
For
eration
V A Research
tion
all
the country.
over
$2,805,000
investors includes:
for
-
-
Merchandise," and by that
showing improvement by the
to sell or an offer to
buy." Such a
of brokerage jargon
statement
or
one
similar is re¬
and more persuasion, human in¬
quired by the Securities and Ex¬
terest, benefits, and informativechange Commission. In most cases
type presentation.
the group of underwriters
selling
the stock to the public can
only
Selling Investment "End Results"
us many
attractive
it
present problems for an ad¬
vertiser who would like to
employ
copy techniques which have suc¬
elimination
offer sound investment
qualities. Some of these also have
possibilities.
but
does
Sound Canadian Investments
United States investors
cause
semi-consciousness.:
First,
advertising is probably
dreds
has
are
the
Sparkling Advertisements
The dull
too
Babies,, . animals,
Aesop
Fables, testimonials, boy and girl
situations are being used.
Even
ance
in¬
and the
ox
work
Art
can
are a
many years.
Hep."
ago
quiries than it did in 1948.
million
A
:
.
"Steel, Schools or Soy Beans."
"The Professor Just Had to Get
and
interest
inquiries and in fact the last time
first half of 1956 totaled $600,000.
10 million
1956.
advertisement which has since
become
the
Their
These steps have been taken by
some
idea
security
very
Leading the wav for the indus¬
try is the New York Stock Ex¬
hit-or-miss basis.
But,
of
Shopping in
"Dividends jAre
Friend."
-
plan
telling why
are
girl's best friend,"
how'a stock acquisition
provide an education for
showing
ments.
merchandising and adver¬
sales promotion is to sell the
half
only
by
-
ment Store."
but not enough, are employing the
modern
current crop of brokerage firm ad¬
why is it
It
Business."
Go
league advertisers
"dividends
the
Stock—Buy
fragged My Husband Into Big
face of many
an
Now
alive.
Your
f the Month."
■*I
Thursday, December 6, 1956
.
securities
Through Investing."
•
the business and the biggest
spender, believes so strongly in
this premise that the primary ob¬
jective of all their advertising and
is
vertising
half
about
a
'
investing in their of¬
fices, in auditoriums, furnishing
speakers to clubs, showing films,
exhibiting at fairs and a number,
their
is the largest
for
Buy
Beautiful Baby Girl."
in
courses
Their
complete lack
the in¬ advertising has been the envy of
the industry and has
helped build
by millions of
business
firm,
Several
about
potential investors.
One
brokerage firms
following suit and descending
Cruise."
a
You
"How to Make Your Garden Grow
attended by 100,000 people.
understanding
vestment
of individual
tors.
Would
"Choose
.
Stringent Advertising Regulations
as:
Kitty for
a
"Let's
from their pedestal to woo inves¬
has jumped by
more
since
group
vidual
with
families
or
which
ground floor windows.
are
watched
in
the
that
displays
attractive
you see appearing in the
advertisements
with
such
"What
Over 200 brok¬
A growing but insufficient num¬
upper
note
taken
".Start
a
in the Ex¬
sponsored, three - dimen-
-
er's
really wealthy people.
have
number
of
ad¬
vestment
middle
with
informative,
headlines
feature various industries in brok¬
Americans and the shrinking
They
Adver¬
or
E.
come
of
press
participating
are
tionai
the New York Stock Exchange, and
on
easier to read.
Now
securities.
magazine
a
change
by advertising consistently, rejecting the style of
the 1920's, and appealing to the large untapped, inexperi¬
enced, potential investor market.
asked
of
worth
speakers bureaus.
be done
was
and
100,000, conduct ed¬
programs
in schools,
ucational
Bonds program, New York Stock Exchange, and the growing
but insufficient number of individual brokerage firms, much
I
more
circulation of
advertising. In admitting that securities advertising
probably the most regulated and censored of all advertising
Mr. Cruikshank insists, nevertheless, that like the
insurance and banking industries, the Government Savings
When
Booklets ani other literature
are
histories and other pro¬
milJ'on
outdoor post¬
and
ers.
direct mail sugges¬
many
case
They publish
is
can
-for
television
„
today,
R.
scripts,
and
supplements.
using racio—some
are
television
even
helps. Their sponsorship
of the Monthly Investment Plan a
few years ago has helped sell over
Sacramento, Calif.
an
advertisements
radio
Sunday
Some firms
each
to
complete
are
in
pers,
compre¬
given
motional
Vice-President, Albert Frank-Guenther Law, Inc.,
suggestions to awaken and create
tie-in
newspapers,
tions,
By RICHARD E. CRUIKSHANK*
investment
Very
hensive
.
SHEARSON, HAMMILL &. CO.
page
36
Volume
Number 5592
184
,
.
.
The Commercial and Financial Chronicle
(2391)
detail of my initial projection for
1957.
However, the preliminary
Instalment Credit Developments "figure
For Auto and Other Loans
for
—neglecting consideration
in the
Director
of
Economics, Dun
i
Bradstreet, Inc.
&
of
That freer credit might push 1957
Auto
units
is
envisioned
Of
credit.
analysis
specific goods
I
shall
to
con¬
loans
course
for
terms.
repair and modernization activity
doubts credit would be made easy enough to support such a
sales volume, but does not dismiss pressures by producers
Credit
major interest focuses
chases made
classes of goods
—autos, other consumer items and
by Dun and Bradstreet Economist who
that 1955 experience has rendered
uncertain the reliability of fore¬
casts
of
sales
car
based
more
or
credit, and credit class
on
These factors of
always
interrelated
closely
course
and
breakthrough
a
it's
be
and
forth—I don't
Continued
in 1957 in view of
so
so
possible to eliminate
see
on
a
how
lot of
24
page
credit should auto sales
on
decline below about 6.5 million.
old-
are
will
car
might engineer
on
is
standby variables—GNP itself, the
the big sponge. Changes in credit size and
age-distribution of the
will depend on the volume of car car;
population, the number of
sales, the percentage of total pur¬ households distributed by income-
shot at the behavior
a
instalment
the
for this
automobile credit since this
on
neighborhood of $37 billion,
Now for
fine
sales to 6.8-7 million
car
the pver-all credit situation. Both
reason and for the reason
so-
called personal loans.
consumer durables with
which I'm now working—and to
which my estimate of instalment
credit trend are in bondage—falls
By EDWIN B. GEORGE*
of
11
Dr.
George
1957
compares
This announcement is not
outlook with certain earlier postwar periods, and guesses that
GNP will approximate $434 billion in 1957. Author looks for:
offer to sell or a solicitation of an offer to buy these securities.
offering is made only by the Prospectus.
an
The
(1) somewhat larger proportion of cars 4o be sold on cash
cash'fdus.irade-in basis in 1957 than in 1956; though a sig¬
or
nificant absolute credit sales increase will occur;
and modernization loans to show
other
$20,000,000
(2) repair
fairly steady growth; (3)
credit goods to maintain or moderately step-up
consumer
the constant rate of
a
Long Island Lighting
growth from 1956 to date; and (4) instal¬
credit ex-personal loans to rise between $2.05 and $2.63
billion annual rate in 1957 compared with $1.67 billion in
ment
first three quarters
of this
First
Mortgage"Bonds, Series I 4ZA% Due 1986
year.
Dated December
prime
My
interest
as
fore¬
a
concern
global predictions. I
greatly concerned about
never
am
the
instalment credit outlook
for
cept
rive
pe¬
appeared
that
level
the
tivity itself—
not merely its
mix
verted from
savings,
substan¬
tially affected
to
by the behav¬
and
over-all
on
instalment
and
via
multiplier
changes
credit
in
occasions
riod
during the postwar
when
not
this
appear
tfue
so,
1957
likely to be
one.
was
of course that
for
autos
main
a
pe¬
does
the percentage of to¬
those who
over-all prospects
such
ence
appraisal
on
sales
than
its
in
availability
spending will
of
net
a
rise
in
DICK &, MERLE-SMITH
L. F. ROTHSCHILD &, CO.
R. W. PRESSPRICH & CO.
HALLGARTEN &, CO.
SALOMON BROS. & HUTZLER
SCHOELLKOPF, HUTTON & POMEROY, INC.
HIRSCH
&,
WERTHEIM &, CO.
BACHE &. CO.
CO.
for one
involve
GREGORY
-
WILLIAM
A0CHINCLOSS," PARKER i&, REDPATH
NEW
YORK
HA#SEATIC
FREEMAN
December 6, 1956.
BLAIR
&
WM. E. POLLOCK
CORPORATION
over-all dollar
shifts of funds from
one
& SONS
&
COMPANY
&
CO., INC.
COMPANY
■'
1
^.-iv ,!...;..,.;.
sequence
This announcement is not
of
spending to another, as for ex¬
ample between instalment goods
and
heavy
cause
investment,
might
change in velocity,
net
a
offer to sell or a solicitation of an offer to buy these securities.
offering is made only by the Prospectus. ■.
an
The
■
and
influ¬
likely to
more
BEAR, STEARNS & CO.
"
re¬
I am not forgetting the.
compartmentalization of
funds, but still expect them to be
fluid enough marginally to make
this
judgment walid.
(Perhaps
foregoing, it will be
anything I have to
say on instalment credit isn't go¬
ing to be very helpful since it is
first
and promises to
now
demand.
that
contingent
HALSEY, STUART & C®. INC.
growing
the
evident
.
of
than
have.)
From
the
(It's; diversion fron\ other forms rather
knowledge of
the probable availability of credit
for these items is still important
to
effects,
tight enough to insure that
rise
form
stoves,
or
is
money
have to predict what will happen
to
more
important, at least for the first
approximation.
The
supply
of
'
;
may be obtained in any State in which this announcement is circulated from only such
of the undersigned and other dealers as may lawfully offer these securities in such State. *
so
out-
standing; and
although there have been several
;,f
sales
The Prospectus
accumulated
contribute
price
represented
by
credit.
For 1957, however, com¬
position in this sense will rnot be
interre¬
lated1
Edwin B. George
tal
sold
items
Price 102:75% and accrued interest
demand, both directly
ior of demand1 greater was
for
general
spending or by
from
would
Due December 1, 1986
ar¬
a
other
withdrawals
would
—
To
forecasts of
good
1, 1956
prospective
given "autonomous" jump in cash.
outlays for consumer goods,
whether financed by money di¬
of general ac¬
be
the
setting, one had
to assess among other things not
merely the level of demand but
its composition.
For example, a
riods in which
it
at
ex-; activity in such
'
.
with
was
scale of over-all spending.
caster lies in
any
then
but
lays,
be in¬
in
over-all
dollar
out¬
$10,000,000
of variations
the range
seems likely to be quite narrow.) *
by them; and then upon.
If this is so, the dollar level of
judgments with respect to the de¬
activity in 1957 will depend on
gree to which sales on instalment
the amount of money lenders are
will share in the general
develop¬
able to make available arid on its:
ment. And
the
;
fluenced
judgments
don't:
shed much light on that relation--
GNP
velocity rather than
on
Qctual mix of demand-^-dlthough
ship and could be far off the beam r
tile latter could well affect the
dictating significant revi-1
volume of physical output asso- *
sion in my basic projection.
' t
ciated with a given dollar output
All this being so, I believe that
because
of
differences V in
the
the best way to proceed is as fol¬
prices of the goods principally af¬
lows: First, to indicate why in my
fected.
for
1957
general outlook for the
in
field
the
of
instalment
reasonably
be
com¬
credit
much
So
will be those I have sug¬
ing year; and finally to indicate
what accompanying developments
may
'
erice
As
to
Versus
the
Other
stalment
picture for
for
prospect
that
In
year.
several
postwar pferiods (e.g., first
quarter 1949 to spring 1950, or
from
late
1953
well
into
1955)
a
general forecaster
keep a close eye
on
prospective
demand
in
those
where
on
pressures
sales
reason
to
areas
typically made
were
instalment
an
had
basis.
During
such
periods, real resources were
under-utilized, there was plenty
of money
to support instalment
without
sales
pinching loans for
purposes,
and our major
other
*An
the
address
4th
Annual
r«mir
Nov.
by
Mr.
George
Conference
University
15,
on
of
before
the
Eco-
Michigan,
1956.
the
basic
!
Dated December
1, 1956 "
Due December
'
i '•»;
1, 1986
Price 100.848% and accrued interest'
differ-
1957
arid
certain
credit
outlook.
What
for
of
the
the
general
outlook
Beyond spring, this still
to
me
depends
Years
1957, the
basic explanation lies in the mone¬
tary
:
:
i
i
earlier postwar periods in the sig¬
nificance of developments in in¬
self?
expected.
for
between
pears
1957
Light
considerations
gested"; then to deal briefly with;
the
i:
First^ortgage-Bonds, 4M% Series due 1986
the
without
view the dominant
i,;
Dallas Power &
of
so
it¬
>
!
i
i '•']
ap¬
much
on
tenance
obscure since
•
be obtained in any State in which this announcement is circulated from only such
of the undersigned and other dealers as may lawfully offer these securities in such State.
»
The Prospectus may
how readily monetary
policy is adjusted to insure main¬
cially
levels
mum
unemployment
at
HALSEY, STUART A CO. INC.
-
R. W. PRESSPRICH
and
politically
tolerable
exercising the maxi¬
degree of restraint on price
L. F. ROTHSCHILD & CO.
& CO.
while
FAHNESTOCK &, CO.
NEW YORK HANSEATIC CORPORATION
HIRSCH & CO.
increases
jective.
consistent with this ob¬
My own guess is that the
authorities will do fairly well this
coming
year.
If
so,
I
$434 billion for the
Now
form.
the
How
durables get
the
-
INC.
will
BYRD
competing
FREEMAN & COMPANY
DALLAS UNION SECURITIES COMPANY
BROTHERS
this
consumer
scarce
uses.
closely
ANDERSON & STRUDWICK
MORELAND, BRANDENBERGER, JOHNSTON & CURRIE
NEWBURGER, LOEB & CO.
funds
To tell the
truth, I have still to firm
THOMAS & COMPANY
MULLANEY, WELLS & COMPANY
takes
It is hard to estimate
of
FIRST OF MICHIGAN CORPORATION
STERN BROTHERS & CO.
out of this $434 bil¬
allocation
among
CO.
WM. E. POLLOCK & CO.,
i,
year.
question
much
COURTS &
guessing
am
that dollar GNP will approximate
lion?
»
so¬
up
the
ARTHUR
December 4,1956.
PENINGTON, COLKET & CO.
L.WRIGHT & CO., INC.
12
The Commercial and Financial Chronicle
(2392)
interest
The
were,
they
delineating the factors affecting the ailing municipal
market and the changed yield curve, Miss Cook concludes that
in the absence of unbridled inflation, "the present boom will
After
little boy sick at a riotous, birthOff
and
on
2.63
2.58
2.42
2.96
3.24
same
for
which
four
but
19
prices
inventories
with
had
been
remainders
of
built
before
the
middle
few small
a
issues
cheered
the
market
weeks, only to drop the
to 2.96% again on Oct.
after
week
a
of
in
no
re¬
prices.
principal change in the
in the third quarter was
sharp increase in farm prices,
economy
followed
and still being followed
by increases in the cost of nearly
all
other
goods, due to higher
steel and other wages or the ex¬
up
issues
which hadn't gone well and prices
began a two-months' decline. By
pectation of them.
dropping their bids so low that
some.of them were rejected, deal¬
Tight Money
ers were able to price a number
Thus far this year, municipal
of new issues where they were
bond
prices have not been de¬
taken the first day. But old bonds'
pressed by the Treasury's financ¬
could be sold only at a loss.
ing.
But rates have been in¬
creased by all lenders, including
Dreary Summer
now on.
of
many
.
boy has
gobbled up
our
too
puffs
with the usual
consequences,
but
of
most
the
time
has
he
been
hungry
and
bruised,
crowded away
from the table
and
by
Cook
E.
pummeled
crowd of
a
Glow
The
many
cream
Elizabeth
not.
In
active~~ease'' kept the
supplied wTCPTreserves.
of
banks well
W#h
nlwntv
_of
and
moiitaf
■
bonds
Of
and
municipals,
maturities. Aa
total
mous
espe¬
bonds
^
tlpft year-—$F,klu;75B,almost. fquallv dluStaaripe-
was"T5sued
000.
tween
enue
general obligation and Kpv-
Mt>re accurately
than
figure
any
speech, the chart tells what has
happened.
Prices of all
bonds
have been falling while most pro¬
duction,, sales, and price* indexes
have been making one new high
after another.
For m u n i c i p a 1
bonds
of
"Bond
the
bonds
tJni^us^Ince Labor Day, iho4.
the
Because
av
"Bond
During
1955 the
of
eTagtrlFTDaSeTT'drr^
dollars
than
do—rro—more
snubbed
ejai
off
of
trend
prices.
It dTTes
bond
tax-exempt
but
great surge of
worth
of
Government
They bought very few
give—»- tax-exempts. The Federal Reserve
stiffened
its policy of restraint.
noTsnow wTTen die
spread between general obligation
Interest rates rose
such
sharply.
At the end
oL hflw the
and
long" maturi¬
lj
hlrr
gives ho
scales
uf
were
(tf-down.
with ~5Tl~tts
But
There is of
course
no
1956:
The
one
price
*An address by Miss Cook before the
Municipal Analysts, New York City.
than
there
last
business
which
bond
been
market
more
difficult
because,
have
or
did
a
been
at
intervals,
variations
industrial
might have
gone
most
not
hard
half,
in
that
in¬
the
began
end
until
summer
of
the
time.
ready to
as
to change the trend toward higher
of
14.
their
appeared
such
activity
end
Sept.
for
which
withdrew
or
of
some
open
far enough
bond
dealers,
gov¬
refused
But
they
were
eyes
half-
pounce on bargains
$38,484,000 Massachusetts
on
July 11, $16,000,000 Michigan
Highways on July 17, $14,000,000
Jacksonville
Revenues, July 24
and
$15,000,000 Maryland Roads
the
are
sibly
iw
mi
m»
mo
mt
mt
mi
m«
ms
im«
iw
mi
mi
mo
nn
ml
nu
mi
borrowers
some
highest
lowest
since
1933.
since
1933
or
pos¬
dealers and
by
under
dealer
difficult
most
con¬
the first nine months of this
In
the "Bond Buyer's" average
year
has
traveled
2.42%
from
down
to
2.56%
The Yield
Curve
the relationship between the
of short and long maturi¬
men,
ties
is
spoken
of
price level,
general
dicated
by
yield
4
'
The
the
the
as
curve.
One
Dollar
the
of
reversal
perplexing
investor
of
year
and
make
can
down
or
yield
wide
a
swing up
affecting the
without
curve.
For
long
a
time .prior
to
higher
old
long-term.
than
depression, which reduced
short-term borrowing to the min¬
imum, then by a heavy influx of
gold
(between
1933
and
1941)
which
theory
be
the
swelled
money
base,
the
war-time
interest rates must
finally
by
that
low
kept
the
for
the Treasury.
Since
banks
stopped buying
municipal bonds, the
a
group
short
term
yield
curve
has been changing its
Prices
shape almost continuously.
higher,
yields
lower,
are
maturities
the
but
been
than
in
This
greater
the
illustrated
is
by
of the California State bonds sold
January
1955
in ^October
and
'
devel¬
.started
Is sues:
IrT January Hoy
critical
newspaper
tt—Cvas
several
articles
few
a
and
roads
h?d
hgft^-~4rr^the
2 year
Increase
from
in
short
to
still
.70
1.45
_
municipal
maturities
the
to
melted
best
who
the--feuds-Tor
issues.
knew,
or
discover, relative
into the market.
the whole
Finally
But
took
values
in¬
time
came
by that time
price level
lower
that
issues
could
was so much
the
strongest
even
not
their
recover
former
prices.
probably
It
all
dollar
is
bonds
vulnerable than
nicipals in
term
inevitable
should
be
that
more
regular type mu¬
Being
down market.
a
they /
'bonds,
are
actively
quoted in dollar prices and on the
up
side
are
speculation.
to sell
favorite medium of
They are the easiest
a
and the first to be sold.
Hard
"Bond
the
bonds
yield
more
earliest years.
not
reversed its former
The change has been even more
ernment
jTrrf
$4,678,509,000
securities.
For
several
months certain short and interme¬
maturities
diate
of
government
securities have yielded more
than
September, the
2V2S of 1961 gave a return 0.26%
higher than the 3s of 1995. And, in
the opinion of some students of
the market, the yield curve of
government securities would now
slope from the highest yield in
long
.bonds.
In
the shortest to the lowest yield in
the
longest years of
for
one
it were not
practical and one psycho¬
I
reason..
Treasury Bills' Yield
m»
$5,003,135,000 for the first
curve has
shape but
pronounced in the prices of gov¬
estimates
months-of this year—compared
The
The Treasury's 91-day bills, sold
h
jjon<jay
have become the
'A
.
Continued on page J4
' during-> the
Incomplete?
Available in New York
Phone REctor 2-9570
1938-1950
City—Write
or
Edwin L. Beck
c/o Chronicle, 25 Park PL N. Y. 7
ma
mi
mi
mj
mi
iw
mi
mv
mo
nn
ma
mi
wm
ms
long
than
it has tended to flatten.
logical
Going
Buyer"
2.85
yield
long maturity
In
2.15% :
.75%
2.20
—
20 year
the
selling
Oct. 1956
Offered to Yield
"CHRONICLES" from
mi
all
in
in
long end.
the scales
much
short
the
in
increase
has
yield
Beautifully Bound Set of
mo
of
when the
1955,
January,
as
benefit
p
"FOR SALE"
W39
the
But
pattern was changed, first by
the
Are Your Records
m«
1930
short-term rates usually had been
Jan. 1955
sentiment
Fu7n nOre
tjywafcl
with
1137
as
Buyer's" index of 20bonds, can change overnight
Bonds
opments of the year has been the
11
mi
in¬
as
such
average
an
"Bond
1956.
Doleful
totaled
ms
to
up
2.96%.
In the lingo of municipal bond
;
in
earlier date.
some
The
»♦»*
since the first
change in the yield curve,
short-term
municipals probably
issues.
uninterested
recently
20-year municipals at the
prices since 1936. Because
vestors
evei^
municipal
only dozing with their
in
funds
unsatisfactory to local
Investors
municipal
this year has
bids
Hopes
than
which
ernments
False
the first
complaints
decline
was
very
sliuft-
comings the ayerage does trace a
line which pretty well fixes the
dates of changing trends.
by
prices
up
of
scarcer
nicipal bonds went down, with the
new—isawes
ex5ggex^t£^he^-end,^~Wlielliei'
July by 3'2%,
that one month.
For
the
sold
banks
ditions.
and
the
of
tery
Under
years.
in
to
now-
borrowing
expensive or
more
year.
lowest
even
The
longer
busi¬
of
is
have
arrange
are
shows
the
reduced
index
Re¬
last
Except for the short dip in 1939,
the
"Bond
Buyer's"
average
Rumors of easier money were re¬
It
it
automo¬
to
the
placed
June
And
strike,
in
become
construction, inventories, studies.
Later
consumer
credit, the cost of liv¬ qjisappointing
ing, and bank loans all were up.
lessens, nox-itm.
betweenlshort
Federal
slightly,
dustrial
af1S~~authuiity "bonds
ties:
steel
it
and
Reserve
activity
only lor
conditions the prices of mu¬
widens or decline much greater in the early
ehaaggTn spread" "bank"
maturities
than
in
the
the
reduction
in
building would out¬
weigh
the
factors
making
for
tighter money.
The steel strike
did cause heavy losses in a few
ness
securities.
2tt
that
drastic
was
bile production, and the slight de¬
mobiles
Buyer's"
apparently
cline in home
*
borrowing to buy homes and auto¬
prompted banks and in¬
surance companies to sell billions
the
terms
eased
rates
•
industries
Relief
advertised
dealers'
mistake
Federal
No
Buyer's" "frlttex
shows
that,
except
for" brief
rallies "the- dgclThe has "been (•oiT-
swelled
clined.
rgygr&wg-^if>6
was
which
harder
offerings in
the
Blue
List
to
nearly
$325,000,000.
Prices
de¬
the f7TW-trrri4^atTTTTT?"I balMpn Fprl-
eraF—Reserve
for
been
few
a
has
the
Inward the end of 1954 bond
prices Uteplll led due to an exces£iW amount Of new" bonds and
took
large tax-exempt issues, but their
soon cooled.
Again unsold
believing
Chill
in
Except for FHA and VA loans,
easier.
inves¬
money
rumors,
and
ardour
grasping, selfFirst
in
rushed
The
The
make
to
Prompted by these
tors
bond!
important rivals.
of
act
soon
enor-
tax-exempt
impt
of
May
not
enough bor ™jw-«-r~s_ihey were
eagei^ibtey'b' r s—of—Government
cially short
advances
two
and June the belief,
serve
discount rate, the
that the steel strike would cripple:
3%;
in August, where it
many industries Jed to predictions
all over the country.
that the Federal Reserve would
the Federal__J£eserve's
|ffi4
policy
In
of Health
been
(11/30)
They have
yields
The
the
period last year.
sales
good
rising calender and Blue List.
covery
the
on
same
Since then there has been
uptrend until
the end of February, when they
reached their high for the year
to date.
By early March dealers'
lQuH
day.
Finally just
September
terest
Sales of tax-exempts were brisk
past two years there
times when it could
been
"2.37
2.56
average
and
nnlv^mhfeaJl cannot distrihi'tp lbe current, supply quickly.
have
2.38
Reserve, and steady sales of Gov¬
ernments by banks.
rnpdjtinn
the
1955_____.
went with the
wind, and started the very slight
recovery in prices and buying in¬
have led many per¬
ignore the contrary sig¬
high bill rates, selling by
2.36%
2.26%
attracted attention,
irregularly,
Last
2.54%
2.54%
Federal
Reserve,
increased
member bank borrowing from the
level at which the municipal bond
A7kT in
party.
uay
decreased
High Yield
1956__
of
member
the
portfolios of commercial banks, and expects more effective
If
February
Ta5F Exempt Bonds
Price
Low
Yield
1954
the
may
to
nals of
chief sufferers from high interest rates, the
Federal Reserve policy is not directed against them. Author
reviews Treasury and Federal Reserve operations, the changed
ailing for the past two years,
suffering amid laughter, like a
of
loans
which
are
The municipal bond market has
than
better
rate
any
Low
Open
outlook
going to be for long.
early January unt»l nearly
sons
have—perhaps in a gentle rolling adjust¬
ment"; it can do no harm for municipal dealers to assume
fluctuations around an upward money cost trend for next dozen
years; closer cooperation by elements comprising the municipal
bond market can help prevent credit flow stoppage, so vital
to community health and progress; efforts to find new buyers
for short maturities have been fairly successful; and though
been
industrial
were
middle
bank
all booms
at
or
From
Federal Reserve credit restraint from
the
clouded, the year began with
conditions, for municipal bonds,"
looking rather better than they
the
Thursday, December 6, 1956
.
The "Bond BuyerV Average of <20 old '20-year
never
was
Publicity Manager, Hemphill, Noyes & Co., New York City
municipalities
they
.
High Price
Because
By ELIZABETH ELLSWORTH COOK*
as
But
have.
Municipal Bond Market
And Rising Money Rate Period
end
rates.
.
'
'
V
Number 5592
184
Volume
.
.
(2393)
The Commercial and Financial Chronicle
.
*
of
Woild-Wide Oil Problems and
.
deliberations
its
and
Compact
and
conserve
we
can
interstate
The
an^ fullest and WiSeSt'ti^e
is
Long-Ran U. S. A. Shortage
A. SEATON
By FRED
United
know
countries
world's
oil
their
proved supply,
are
two-thirds
now
resources,
However,
cere
anyone
into
do
I
believe
achievements in
been
of free
of
valueless unless they have avail¬
now
United
The
great
bulk
being produced in
States
under
is
cal waste below
or
care-
above ground,
However, new factors have developed
and
some
of
those
Foreign Ecoby the Con-
«•
adjustment and the freedom of individual initiative, which are fundamental to economic progress."
Middle East Has Most Oil
Oil reserves are not"equally dis—
there comes to mind a flood of
tributed throughout the world—a
arguments why such a- compact.
that w.e must fully realize,
could
not be
negotiated, and if The United States has about a
ever it were, why it could never
fifth of the Free World proved
work.
Our own long-drawn out
reserves, while the Middle East
difficulties
before
the
compact has about two-thirds. Since 1938,
could become a reality, including
United states proved reserves
Even
fully enforced conservation practices, calculated to prevent physiv
major aspect of the internapetroleum problem, then
ciples of the Interstate Compact?
everyone
that respect have
substantial.
the oil
the
markets of the West. Affirms Administration's:
intervention policy into private business; reliance
a
tional
here
the industry will agree that our
voluntary efforts to control import level flow; and sinintention to deal with world's oil problems; and plans for
upon
is
is fully satisfied with, the question immediately arises:
we
are
achieving in Why not an intergovernmental
conservation
of
petroleum, agreement based upon the prin-
the
able the great
minimum
also
results
the
in
thus
on
up
at ^President Eisenhower's
request, summed up the Government's position in these words:
Such agreements . . . "introduce'
rigidities and restraints that impair the elasticity of economic
who
today
oil
resources; and though "Western Europe will face disaster if
Middle East oil is permanently cut off," those Near East oil
applies at least to the
Western Hemisphere.
helping*.
Since conservation can develop:
the world supply.
doubt if there
I
asserts that over the long-term we are not self-sufficient
oil; that we will be required to tap more effectively foreign
I
States,
nomic Policy, set
of the/availt T-gress
question
conserving and fully utiliz-
to conserve
Middle East issues, Interior Secretary
tne
ing the great oil resources of the
Secretary of the Interior
Without discussing the
in
make
Certainly, that
important step in our own prog-- able oil resources?
ress
The Commission
public^ internationally may well be: How
record.
13
justified
have
the
question
Congressional'
question-
raise
I
as
fng as to whether such an agree-
have approximately doubled; those
°f the Middle East have multiplied
15-fold. Last year in the United
States we had to drill 20 wells to
My introduction to the respon- able us to see more clearly the serve of productive capacity ha" hov
really difficult it'would be Und a million barrels of oil. Ten
sibilities of the Department of the
long-term direction in which we been developed, employment and to reach any semblance of inter- years earlier, it required only 14
Interior witn respect to oil and
should move.
wages are at high levels: and many governmental agreement. Particu- wells to find a million barrels,
gas
was,
at least to me,
a bit
The oil industry, beginning with foreign sources of oil have been iarly that is true of an agreement
Before World War II, Europe
the simple well-drilling tools used tapped. In the creation of reserve that would achieve conservation
was getting three-fourths of her
sudden
and
Middle East
created
Emergency Committee.
new
.
Facilities
sizable re-
problems.
have been expanded, a
monopolization
encouraged
ment
and
stabilization,
price
indicat'
'
dramatic.
by Drake, and a
Early in June,
of
became
I
nology
Interior.
On
July
out
of
the
tian
Govern¬
ment
of.
hOw
its
take over its
terminate
its
to
operate.
would seriously demage
Western
the
of
economies
nature of petroleum—
and the manner Of
OCCUrs
„
those
For
imports
do-
upon
„!Ui„
Advisory
„
•
in
n.
the
United
nations
'A.complete
stoppage for any length ,of time
i„„,r
°iH.n t]1As.!c0.V"tryJgra_dualLy ®rows
costly
nntl^nSltartr
In the light o£ these facts, let's
ma;or problems in forei«ri prosee whats happening to demand.*
duction
The Middle East Is espeSince the turn of the century, the
"more difficult and more
and
reasons
Committee
■
£ially f;,ee
Energy
complications! population of the United States,
into constitu- has doubled.
Our ttse of energy,
tional? to Say nothing of legisla- has increased fivefold since then..
Governhient PoIi,.v on oil Imnorts
tive, problems in attempting to
the last 25 years our consump1
troatv .l.-. which s_
that
in finn of petroleufn nmHnrts IHnW
tion nf
products tripled.
UOVCrnmem 1 OUCy °n UI1 lmP°"S
This committee faces one of the th United States we haveconsid- Currently, in thedaily demandfor,
total
all oils is
on
could
we
-States;-best assist the. petroleum industry *
continue to deal effectively with
such
0f
also
..
.
...
,.
run
cimnlc
,
an
effort to extend
^
too
Ana
.
its peculiar problems, so that the
security interests of the nation and
its economic well-being are test-
ro^exienq
in
fundamental nrinclnles ^
o''
simple' ll"^
£
against- proposals
/
far nas been anectea towara some
for
a
full-scab
formation tends to migrate toward
that well. In the absence of regu-;
latory measures, each owner of
an adjacent tract rushes to drill
on his land so that his oil will
not be drained away. '
of
Egypt's action, it was impossito say how long the
Canal
could, or would, be permitted to
operate. The preparation for the
adoption of plans of action was
immediately necessary.
of
ble
agreement
offi-
hold, and
took
of
arc
the
Secretary
tee
out
carry
and
The plan
This announcement
dislocations in supply,
which brought this Com-
that if we were
would be the productive capacity
Continued,
solicitation of an o/]er
made only by the Prospectus.
in neither an offer to sell nor a
has
existence
Debentures.
on
page
The offer is
to buy any o/ these
been
approved bv the Attorney General
to its legality, and by the Director of the Office of Defense
Mobilization as to its adequacy.
as
Thirty-Five Year 4Vs% Debentures
Dated December 1,
Interest
Due December I, 1001
1030
payable June 1 and December 1 in
Detroit or ,\ew York City
portant oil would be to an ex¬
panding economy.
East Discussion
Avoids Middle
of
Events
,
in
last
the
Europe and the
no doubt that
leave
Middle
we
qq
East
pass-
are
wag
scarce
Board for the purpose—believe it
or not—of forestalling a possible
consequences.
Whatever the net shortage. Before the Board could
results of this crisis may prove to figure out what to do about that
be, it is likely to affect funda- problem, discoveries of great new
mentally the domestic independ- producing fields changed the
ent producers as well as the large
threat of a shortage into one of
companies operating both at home superabundance, wastefully pro-
ing through an international crisis
of unforeseeable proportions and
the
late
not
the
on
think,
do
possible
however,
outcomes.
that
certainties in the present
for a reexamination
call
of
in
basic
our
to
ence
a
This
the time to discuss
issues involved, or to specu¬
This is
petroleum
reexamination
the
Board—a
Navy,
Interior,
address
Nov.
14,
by
of
terest in the oil
our
every
Mr. Seaton before the
Institute,
Chicago,
P'trolcum
1956.
and
Commerce.
ence—by way of public hearings,
reports ana recommendations—it
did succeed in arousing public in¬
'
*
*
MORGAN STANLEY &
JILYTU &
CO., INC.
TIIE
FIRST BOSTON
IIARRIMAN RIPLEY & CO.
CO.
industry now operates,
EASTMAN DILLON, UNION SECURITIES <£
CORPORATION
KIDDER, PEABODY &
CO.
GLORE, FORGAN & CO.
CO.
LAZARD FRERES & CO.
Incorporated
LEIIMAN BROTHERS
MERRILL LYNCH, PIERCE,
WHITE,
Almost
the Interstate Compact
Conserve Oil and Gas, grew out
including
to
problem.
concept of regulation under
which the
*An
ap¬
Through its seven years of exist¬
supply.
Such
not help us
solution
Cabinet Committee
some
present difficulties, but it can en-
American
Copies of the Prospectus may be obtained from on ftp sir eh nf the-undersigned.
as may legally offer these Debentures in complianee with
6
the securities laws of the respective States.
Conservation
refer¬
of
may
immediate
Oil
pointed by President Coolidge —
included the Secretaries of War,
I
the un¬
situation
concepts with
Federal
Accrued Interest
v~%Wv,.
duced.
and abroad.
,
Price 102.266% and
for several years
after the war, and that triggered
off t^e establishemeijit.in 1924 of
the Federal Oil Conservation
weeks
few
December
o.
1333.
■
poll here today on what
Michigan Bell Telephone Company
then wasrit.too important to
nation. Suddenly, there came
the First World War, and overmght we realized how much our
national defense depended upon
svailabilitv of petroleum supP^es. About that same time, we
a^so began to discover how im-
to meet pospetroleum short-
■.
Run
$30,000,000
were
measures
into
mittee
Long
in this country was
State and
a
Emergency
sible Free World
ages
Interior,
the
of
Commitbeen formed to plan and
East
has
am sure
Federal Governments
generally willing to allow a
^ree hand to the competing producers and landowners. After all,
have been
Under the chairmanship of
Middle
a
wild race to see who could get
the most in the shortest time,
During those years, both the
familiar with steps that
taken
Now, I
to take
for
a
eenerallv
course
years
many
ar-
ranged 1o meet the crisis.
Ynn
_
Imports
petroleum, oil production for
Government
again
quickly
try
0
Due to this peculiar nature of
leaders in the oil indus-
Once
cials and
tn
than 15 million barrels.'
more
-
.
.
of population growth and demand
production
involving
price maintenance, and
'solution ot the problems resulting
allocation from the rapid increase in imports.
n
\
* say temporary because it seems
Our Government, as you k o
to me that over the long run an is opposed in pnncip e o sue i
y
^nt aspect ot our problem commodity agreeme ts.
Reviews Past Oil Production
be
to
exPect total requirements
around n million barrels a day.
By 1975,' a reasonable projection
jcdsuiinun. k* ujeeuuu
intergovernmental commodity
w0.uld "J?.an _25£xoluHoi
serious problems for the rest
the Free World.
On the day
neighborhood of,
By 1965, we
million barrels.
^ mf&£!; figures indicates United States of
a potential daily
demand in the
.
.
of the origin. Once a well begins
very
Western
pointed by President Eisenhower.
to him who produces it, regardless
European
the
extent tor our conservation meas
Supplies and Resources Policy, ap-
the owner of the surface of the
earth
cdnn owns
the underlying min-.
me underlying mmerals. In the case of oil, however;
the
"rule
of
capture"; r applies
which means that the. oil belongs
Stoppage in the flow
Canal.
it
n
Nearly a million and a half baror
of oil udiiy passing' through
ou
daily pda&iii^ uuuui,ii
the
and
scarcity,
migration—gives rise to. a set*
generally
reis
rels
of this oil
ot
from
Hemisphere.
The United States
was a net exporter of oil; now we
have become a net importer of a
million
barrels
a
day from all
nine
property of problemsapplicable toto mining, board. How can the ^orernmen. ered a ]matter to be handled by the ""
peculiar
it. Under.
light to the laws
e
s,ajcs'
■ •
.
.
host ass et thn nptrn wim inHnstrv
SldlA-S.
J
J
Annrafo
that
of
portentous
The very
Sea.t.ii
A.
Com-
10
pany,
and
Fred
Suez*
Canal
impact
mestic production,
threats of
/fantastic abundance.;
, ■
^ >
'equally
the Uni^
alize
threats
between
de¬
purport¬
ing to nation-,
cree
versal
the
others,
without growing pains.
Much of the Coolidge Federal Oil Conserthe history of the industry has vation
Board finds its; modern
been characterized by alternations
counterpart in the Presidential
Egyp¬
a
management
and yet not put world trade ant
problems of inventory manage- competitive
enterprise
into
ment, and in the development of strait-jacket.
foreign sources, we fan the flames
The complications of widesprea
of an intraindustry dispute: over
J' dWerseland ownCTsh'i^whic
well know, this spectacular development has not been
announcement
by
modern
and
°H supplies
productive capacity, we run into
As you so
the
sky, came
bur-
know-how.
26,
clear
a
has
still,
geoned into a mammoth industry
based on science, industrial tech-
the
Secretary of
the
refinery the size
moonshine
a
WELD & CO.
FENNEll & PEINE
35
14
The Commercial and Financial Chronicle
(2394)
yield issues
The Stock Maiket Today
substantially
1955-56.
By EDMUND BROWN, JR.*
how
Partner, Penington, Colket & Co., New York City
stock market rise and
adjustments, interest rate developments; and concludes indus¬
trial underlying growtji trend is still strong, balanced bond
and stock program can work out very well, and that monthly
stock purchase plan will have its reward. Mr. Brown cites
factors providing reassuring 1957 outlook, and possible termi¬
nation of bond price downtrend.
Your
stock
Fund
organized in
At that time the*
was
market had shown
tent uptrend for
nearly
consis¬
a
ad¬
a year,
vancing about
clined
while
months.
than
the
From
Fall
1954
terms
•
the
more
the
ages
the
100%,
Brown, Jr.
too
tion
to
this
Percentage-wise
compar¬
was
the
Middle
be
can
develop¬
and
East
high—especially in rela¬
In
June
made
a
rates
came
exceeded by the rise from
up
"Even
of
and
1926 to
1929, which was admittedly a
speculative orgy. The advances of
1953-56, therefore, are not io be
laughed off if one is to make a
cold rational appraisal of the pres¬
ent situation.
available
now
of
individual
stocks,
the history of this three-year pe¬
riod is even more striking. Beth¬
bond
of
money
market
this
and
comment:
though we ought not
a
constructive" view
to
abandon
of
equities for the long pull, we can¬
not escape some feeling of relief
at no longer being pushed and
for income.
lehem Steel, for example, had sold
in a narrow range for three years
in
the
balanced
Relief from
business
of
investment
doing
job for
a
our
customers." Triple A bonds then
yielded 3.40%
and
the
average
prior to 1954 (roughly 45 to 55)7
yield on
corporates
was
aboiit
Recently it sold at 175.. The inves¬ 3.60%. The
average yield oh 125
tor who paid 60 in early 1954 had
Industrial
Common
Stocks
<1 dividend
of $5.75 in that year
(Moody's) was 5.53% and on aand
$7.25 in 1955,-the latter a
composite of 200 stocks of all
yield of over 12% on his cost. In
types was 5.51%. (D. J. Ind. Aver¬
1954, after five years of favorable
age around 260.)
Earnings it became apparent that
nteel profits were pointing higher
Real Interest Rates
and that the steel
companies were
longer the whipping boys of
"Washington. So the stock took off
no
to levels nearly 200%
greater
advances
the
of
aome
higher.
Far
scored
were
aluminum,
by
copper,
building, and aircraft stocks and
certain specialties. (The averages,
of course, include a number of
Blocks,!
such
Loew's
which
gards.)
The
advances
is
been
that
any
fairly
com¬
The next
bull
a
point is that
ket has been based
on
the
mar¬
expanding
business with rising earnings and
The national income
and
the
income
available
families
advanced
to
after
record
to
in-*
taxes
levels.
has
Both
payrolls and dividends in 1956 are
higher than ever before. Tnis does
not
that
mean
kept
with bond
below.
on
it
yields
stock
yields,
But
get 5%
stock
with
pace
as
is
have
prices
or
will be shown
still
possible to
selection
a
of
ably good stocks and the pay-out
earnings is still conservative.
Dow-Jones
credit conditions of the New Deal
and the War
period, interest rates
have been allowed to seek
governed
level
a
by supply and demand.
Today
around
triple
3.65%
is available
A
bonds
while
G.M.A.C.
due
in
1958.
return
active
an
4%
The
yield
4%
a
such
on
of
high
stocks
Industrials,
as
a
group, are earning about $30.00 a
share and paying about
$20.00, a
yield of about 4.25%. But
3.17%.
the
yield
(D.
J.
high-grade
in
It
520
7%
and
investment
many
grade
utilities yield close to 5%.
Some
Turning
movements,
some
of
the
it
is
to
spread
1953
to
the
stocks"
high-priced
such
Business
International
as
Machines,
clear
advances
prhe
also
were
that
quite
excessive; and in the Wall Street
jargon, certain "adjustments"
have taken place during the
past
*An
address
by Mr.
Fifty-Four Fund
of
N.
Brown
Y.,
before
Dec.
4,
the
1956.
suggests that
to yield 5%
1957
Reassuring
As
it
be
can
of
ignored for
discussion.)
this
your
Trust
better
position
investment
to all of
the
Outlook
•
>
••
•
other built-in
such
income
.•
to do
in
"a
in
the
(2)
economy.
Fund
The predictions
increase
over-all
next
in
despite
year
rates
has
causes
rise
marked
in
home-building.
road-building program
appropriations for
are on the plus side.
(3)
The
ments
The huge
local
schools
necessity of supplying
;
the
batance.
banks
Now
to
sell
have
we
bonds
seen
the F. R. B. step up the rediscount
from 2% in 1954 to 3%
today, and
commercial paper rates have ad¬
vanced
along
the' banks
their
with
Moreover,
reducing
holdings for the
have
security
it.
been
past 18 months.
It
ing,
that
therefore,
is not surpris¬
such
low-
and Odessa, Texas; and
Quincy, 111. He holds memberships
on
the New York, American and
Midwest
Exchanges
Chicago
Board
builders, railroad equipment
panies, and
rhachine-tool,7
com¬
will
have
tainty.
worked
showing
■;."*/
„
Inventories
good
of
of
to
*
and
with
year,
anced
intense
development, running to $5.5
billions, result in a flood of new
old
goods
(8)
ures
creates
hy the F. R. B. Now if
should
managers
it
have
around
Furthermore,
in
in
been
ing is
as
certain
follows:
op-
items
which
bal¬
and
out
4.
r
N. J., in
63
was
The
L.
sud¬
who
same
the
as
students
as
and
Trend
in
War
was
<
The
rate
of
a
John
J. O'Kane, Jr.
the
U.
ing. -The purchase of the
car
or-
the
second
readily be deferred.
(2)
in
Past
S.
Army
Commander
Legion
Post
No.
of
1217.
Rates
Corp.
SAN ANTONIO, Texas—Atkin¬
son
Investment
been
can
'
formed
Corporation
with
offices
at
are
encourage
Nov.
30,
are
lo7
Commerce
-
Gopp to Firm
Wood, Struthers & Co., 30 Wall
Street, New York City members
of the New York Stock
on
Jan.
will
1
Exchange,
W;
:
;
George
admit
Copp, Jr. to partnership.
Foster & Adams Partners
"On
Jan.
has
Syracuse
354
will
Victor
Milford
1,
^
and
become
Dean
of
J. Milem
general partners and
a limited part¬
Fdna Avenue to engage in a secu¬
James M. Beverlev
rities
&
Adams,
120
Broadway, New York City, mem¬
business.
Officers
Jo¬
now high enough
savings by individ¬ seph D. Atkinson, President and
uals
directly
and
indirectly Chairman of the Board; and Harry
through mutual
funds, pension* V. Burns, Secretary-Treasurer.". -
to
on
firm
*
be¬
second
TV\set
the
the- Union
in
Admit
I
Form Atkins, Inv.
family forma¬
for the time
terminated
was
Wood, Siruihers to
He
draw
tion has receded
Reid & Co., Inc.;
to the business of the
Building.
In the past he had been PT,esid°nt
of the Security Traders Associa¬
strong—has been pretty-well
filled.
on
of Fulton
Offices of
eated
upon the sav-„- tion of New York.
ings of individual families—while
still
<
and
Captain
a
O'Melveny .& Myers
of
herewith.
successor
1956.
„
Asso¬
Club.
World
/
Co.
member
a
served
reason¬
1
which
New
of the Prince-
ton
&
partnership of Fulton, Reid & Co.,
Security:;
ciation,
was
Staats
CLEVELAND, Ohio—Announce-;
.
Dec.
Board-
Dealers
to
years.
7
the
York
Beebe
R.
picture of Mr. James
ment is made of the formation
O'Kane
of Governors
of
William
of
Fulton Reid Go. Inc.
.
member
a
that
Formed in Cleveland
-
of age.
.-Mr.
was
an
was
correct
appears
1893, /■
* years
error
sion
O'Kane,
Municipal
incorrect
photo-;
The picture used
of
James, L.:
Beebe, Manager.. of the Trading
Department for the Southern Divi¬
in-
in
Mr.
Beebe
graph appeared.
well;
very
L.
California
Bond Outlook
Kingston, .J
feel that the'
The
Dec.
born
of
used
.
Price
Southern
John J. O'Kane, Jr.
was
certain
former
close to termination.
a
bonds-
of
James
un¬
monthly purchase plan
a
unem¬
have available the
which
tools
on
islump
profits
become evident
the
industrial
of
work
can
denly
American
investmeht
a
that
is
trend
New York City, passed away
betier
The record figure of! Gross
and
•
John J. O'Kane, Jr., senior part¬
ner of John J. O'Kane, Jr. & Co.,
plants
old processes obsolete;'
for.'1
were
have its -rewards.;
•
(7) Economic growth in Europe
markets
and better
Oc-
year's
reduced
that the purchase of selected
will
and
South America
in
research
for
Beebe, partner of O'Melveny &
Myers, Los Angeles, Caiif., on the
the
of net assets.'.
program
stocks
mobiles and trucks will be sold.
and
funds
to
growth is still strong; that
a
stocks
make
close
conclusion
derlying
and
which
L.
Conclusion
.
The
.
seems
to be in /the
Perhaps 7 million;,auto¬
products
of
times
of mutual
were
making.
Expenditures
Chronicle, of
Nov. 15 with t.;e remarks of James
,
about 5.7%
.
automobiles
models
Financial
the
But'the fact remains that
sales
competition,
>
the
Correction
Jn
invest¬
stock
high. Gash holdings
down'.pending the
new
motor
(6)
and on
Trade.
com¬
plenty of busi¬
in 1957.
were
of
modes*
American
top of sev¬
markets, especially when
Security Analysts.
Krensky firm
maintains
in
Chicago; New York;
imcer-
net
ship
seems
of
in
reserve
tober
likelv
that
(5)
is
So¬
buying
has
more
weight than personal speculation
in
governing the course of * the
market; It may be noted that the
feasible.
It
panies
He
York
Midland,
against
institutional
price advances in petroleum prod¬
are
ratio
as
SiocK tunas wiJi build up a
;
Europe places the domestic
petroleum producers in a strong
position, regardless of whether
ucts
and
to
cash
new,
to
7;'.' (4)
Co.
McKinnon.
New
He.
research;
&
Washington, D. C.; Grand Rapids;
Mich.; Fort Wayne, Ind.; El Paso/1
fixed-income
securities in accordance with their;
market policies, and some of the
and
,
the
vary
construction
(1)
The
demand
for- houses,
interest* automobiles, appliances and other
the
sold
are
t h 6;
of
The
offices
averages over
a
period.
The so-called balanced funds will
an
moderate de¬
a
cline in
oil
for
are
Managers' Problem
a
ciety
the
on
the
of
1 I
a
Hutton
and
member
a
certain amount
shares
F.
f
by. the firm.
served
of E.
director
and
Wolkiser
Thomson
mar¬
open
also
staff
market
-
us.
Historically,
has
the
public, the struggle? is for
benefits, and farm price "performance"—i.e., to find stocks
which will do better
than
the
supports, are a stabilizing factor)
Bond
:7
whose
managed
o
^witching goes
panies)
long downtrend in bond prices is
job," and this applies
the
M.
social security payments,
as
of money and credit
balanced
Arthur
funds
veterans'
still
a
of
out
Abbett
Company
and
institu¬
of
of
for
Lord,
over¬
mutual funds (or investment com¬
factors
case
any
is
Of course, a
formerly
director
on from day to
day, and it is not unusual to find
one
fund buying a stock which
another is selling. In the case of
expenditures
for defense are likely to be great¬
er in 1957 and this, together with
the
stock
ket.
of
39
research
volume
the
take
Government
(1)
purposes
In
Officer
return
is
at
dwa y.
Wolkiser
was
attractive.
A consideration not to be
the business
stands,
now
turn
the
growth,
in
York
o a
Mr.
with some
should be.
more,
or
B 'r
of stocks
will
fir m's
office
the present mar¬
er we
can
expect anything more ket. Many mutual funds, pension"
than a trading range in the stock
funds, trust funds, and insurance
market for
an
extended
period. companies—not to mention invest¬
Can we avoid a further decline in ment clubs—are
pretty well com¬
the stock market and a temporary mitted to the
purchase of equities
set-back in business?
for all or part of their incoming
cash.
These
operations tend to
/
He
located
New
.
Institutional Buying's Influence
wheth¬
dividends
sweeten
high
are
a program
of
prospect
sectors of the economy the money
to
rates
if interest
Now
even more
Minnesota
Mining, and Dow Chemical. (The
practice
of
paying
small
stock
--
be
the
looked
around
"growth,
ents.
international
the
in
to
insti¬
tutional; cli¬
enough it suggests that bond port¬
folios may do better. But it also
portunities for American industry.
narrowed
resentative
service
seen,
foreign
of
of Arthur
is
It
tional buying in
have
we
as
announces
situation.
corpo¬
ployment
it
the
encouraged
stock
brokerage
the appointment
M. Wolkiser as a Regist e r e d Rep¬
Chicago
Inc.,
firm,
business and the de¬
the course ol'
to
than
on
again
market
be
velopments
National Product in 1956 hajs been
attained despite restrictive meas¬
eral bear
Adjustments
and
stock
quite apparent
that many reasonably attractive
bonds
yield
substantially more
outside
of
the blue-chip
category sell to yield from 5% to
the
will
the business prospect, and
and
The
unul
deferrtd
inflation.
against
the
F. R. B. has reversed its policy
again and the question is whether
this credit policy has dampened
23-
a
be
that
these restrictions
relaxed, dependent upon
possible
precedented proportions.
many
Blocks
directed
management to engage, in a
capital expansion program of un¬
Now,
will
or
(4) High credit costs are partly
result of Federal Reserve policy,
a
rate
91-day
on
is
today.
in
has
Ind.
from about 2%
restrict
In
to
leading
Average) and
bonds
0.6%
is¬
Debentures
rate
of
between
reason¬
of
The
direct bearing on stock
Following the unrealistic
a
prices.
year
dividends.
dividual
has
rates which historically
Treasury bills has reached
man's book.
about
the problem
to
us
sue
and that this has been
mon
lag¬
100%
brings
Of money
and
notable
were
point
have
market in
•
Chrysler
as-
advance
ness
This
operated
May of 1953 the policy was re¬
versed, the rediscount rate was,
reduced 2%, banks increased their
holdings of bonds, ind — as one
commentator says—they "opened1
the door for a great New Era stock
market." It paved the way for an
stocks by the
common
perpetually easy money philos¬
ophy causes some painful transi¬
tional problems, but it puts us
back
slowly
by selling governments.
on
a
Market
low-
Arthur Krensky Go.
Arthur M. Krensky & Company,
the costs are less severe,
ing.
with
shoved into
high-priced
Trust Officer
a
review
the
corporate investment in new cap¬
ital facilities will proceed more
are
prospect for 1957 is quite reassur¬
1953
careful
pressure
Bull
terms
declines
ominous
return
to that of 1934-37, following'
the great depression, and was only
able
In
ship¬
aircraft,
high grade bonds.
advance
A
in
the
to
in
was
Edmund
advanced
three-year
These
on.
so
Central Europe. But most of them
indicate that the price of the stock
aver¬
over
and
40%,
about
in sharp contrast with
these
of
related
Au¬
1956
gust
price
31%,
strength
ments
September
to
Paper
its high, Al¬
from
Chrysler
are
Some
average si
From the lows
1953
top
less
building, steels and certain others.
rep-
resent ative
oi
Oil
declines
of
the
off
are
International
33%,
Gulf
about
It has de¬
from
averages
11%.
santo
further,
to
was
33%, U. S. Gypsum 33%, Mon¬
coa
ad¬
vanced
50%
in
of
i t
29%
about
the
lost about 31%
mid-
to
1956
dividend which
on a
well above its average.
40% in twelve
credit
1955 and paid $7.00, or less
250 in
than 3%
declining
bonds
expect the fund man¬
had
serve
A. M. Wolkiser With
7
(3) There is some evidence that
Back in 1952-53 the Federal Re¬
sold up
DuPont
months.
four
If
we
can
tions.
their highs of
from
agers
to buy
yield stocks?
Investment Planning Manager reviews
October of 1954.
plans, trusts, and savings associa¬
duPont, Alcoa, and
as
International Paper have declined
Thursday, December 6, 1956
..
are
ner
bers
in
Foster
of
Exchange.
the
New
York
•
* V
Stock
Volume 184
Number 5592
.
.
.
The Commercial and Financial Chronicle
Hew York
Public
Sesuriiy Dealers Association
Publicizing Over - the - Oounter Market
Utility Securities
The
Connecticut Light & Power Company
Connecticut Light & Power, the
largest electric and gas utility in
Connecticut,
thirds
of
about
serves
the
principal
cities
served
Greenwich.
Electric
contribute
about
13% of revenues,
87%,
also
contribute
Four of the
.>
'
revenues.
in¬
gas sales
heavily
to
gas
/
ment
revenues have
installing
will
sales
an
and
8%.
have
revenues
average annual
Connecticut
shown
growth rate of
is
not
only the
fastest growing state in New
Eng¬
land, but its population is grow¬
ing substantially faster than that
of} the. -nation as a .whole. 7 &
There is
urban
marked trend to sub¬
a
living in Connecticut.
A
pdrt of the company's service
is
suburban
the
state
largest).
to;
to the
(it
not
This trend
increase,
contain
most
of
the
the
the
likely
suburbs
transporta¬
facilities, and industry is also
moving
of
out
the
where
industry
centralized
or
cities.
The
much of the
company serves
A
area
unoccupied
large mar¬
land that is still near
kets and convenient
tion
big
serve
seems
since
has
area
already de-"
likely to.
would
be
number
tries
of Connecticut indus¬
meeting growth require¬
by establishing branch
are
ments
plants in Connecticut instead of
other parts of the'
country. The
CL&P
expects to
of
age
for
about
same
*ive years.
rate
to
tion
1960
ings.
and
equity
financing
early next
basis
do
may
on
year.
'
The
has
company
obtaining
mixed'
natural
lower
heat
of
its
operations,
cash
and
dividends
Connecticut
fered
less
has
than
probably
other
New
suf¬
Eng¬
land states from the exodus of the
textile
industry.
company
has
In
event the
any
been
successful
in
helping to bring in new industries
to.
fill
up
large empty textile
plants in the eastern
stpte.
switches,
macaroni,
of
are
the
electric
candy,
and furniture
paper
of
part
Manufacturers
op¬
of
hundreds
paid
been
without
of
Company,
of the Association,
governors
of
Secretary:
member of
Chairman, ' Education
/
Committee, calls attention to the fact that the public
Van
Vance
tee:
well
on
the vast majority of all
as
Osgood to Head
Pierce, Fenner
Lynch,
Beane.
foreign securities
are
\
in
larger
the
at
areas;
some
/
used
natural
The
tem.
of
gas
reduction
in
has stimulated
the
33%
in
heat
has
another
return
oil.
its
oh
for
now,
two
the
fully
The
gas
first
Hammill & Co.
Richard
C.
;
■
Mr.
American
De¬
new
~
.
V
~
tion
Engineering
Connecti¬
and
Atomic Nuclear Experimental
Chairman, Program Committee:
Osgood has spent all of his
career
in
CHICAGO,
.
years
field
the
he
has
closely with the A.B.A.
of
its
offices
Street
to
105
—
Wallace,
West
in
K.
lications
of
Wallace
firm
and
Nils
of
S. Geruldsen.
with
Arthur
Inc.,
of
Both
on
which
formerly
Committee:
and
The
calendar
Charles
of
Members
committee
the
were
H.
is
that
announcement
is neither
an
offer
The
;
associated
-
;/
with
P.
Gimbel, White Weld & Co.; R,
was
Smith;
J.
.
the
new
Jr.,
G.
H.
Walker
Peterkin,- Laurence
& Co.; and L.
Sachs
&
this
nancing
basis.
sell
nor a
solicitation of
an
offer
to
buy
any
of these Shares.
' /
NOT A NEW ISSUE
630,COD Shares
level
of
earnings will
despite equity fi¬
perhaps a
l-for-KL
on
to
offer is made only by the Prospectus.
•V"
/
""
-
f'
*
~
Share earnings include tax
savings due to accelerated depre¬
ciation, but this is about offset by
a charge for amortization of
plant
acquisition adjustments. The lat¬
ter
about
(#1.25 Par Value)
charge amounted to $1,371,700
or
Common Stock
■
21c
months ended
The
stock
cently
share
a
in
Sept. 30,
has
been
over-counter
the
12
1956.''//
quoted
re¬
about
19.
at
The 630,000 common
rata
Inc.
by the
owner
common
dividend
is
at
-
shares offered by the Prospectus are outstanding shares and are offered pro
thereof, Foremost Dairies, Inc.', to the holders of record of Foremost Dairies,
at the close of business on November 30,-1956. The Purchase Offer will expire
3:30 o'clock, P.M., Eastern Standard Time, December 17, 1956,
stock
$1
returning a
The price-earn¬
Purchase Price $11.25
and
Providence
York, Bos¬
markets,
is
expected to aid the industrial de¬
Joins
Blytk & Go.
Edward
J.
O'Rourke, Jr. has
joined the trading organization of
Blyth & Co.; Inc., in their New
velopment of eastern Connecticut
when it goes into operation next
year.
of
other
New
England
ities, Connecticut L. &
hydro power, 9% of
util¬
P. has
some
total
Kwn
output last year being hydro-gen¬
erated.
electric
The
new
plant
Shepaug hydro¬
on
the
River,
which has
capacity of 47,000
Housatonic
peak
a
much
steam
CL&P
has
Barney & Co.
clude
Club
tion
postwar;
produce
eighths
of
New
U.
Club.
85%
pound
of
of
coal
or
may
be obtained from the undersigned only in such States where the
legally offer these securities in compliance with the securities laws thereof.
is a graduate rf
College, class of 1947,
as
Company
Ladenburg, ThaVann & Co.
rirst Ca'ifornia
Korean
Auchindoss, Parker & Redpath
Kirsch & Cd.
Goodbody & Co.
Conflict.
New
James L.
is
better.
ness
Cody Opens
LAUREL, Miss.—James L. Co^y
units
seven-
engaging
from
in
Company
Carolina Securities
Corporation
Lieutenant in the
a
Navy during World War II
the
Allen 8C
Strcus, Blosser & McDowell
added
steam
kwh from
may
Incorporated
D'Rourke
served
S.
and
York
Club, Bond
and Corpora¬
capacitv in the post¬
one
undersigned
His affiliations in¬
Bankers
Dartmouth
and
period, so that more than
three-quarters of steam capacitv
is
the
Bond Traders
Mr.
war
can
background
investment bank¬
a
10 years in
ing, having previously been with
Goldman, Sachs & Co. and Smith,
load
kw, is com¬
pletely operated by remote control
from another hydro plant farther
up the river—a good example of
"automation."
Mr. O'Rourke has
During and prior to the expiration of the Purchase Warrants the several Underwriters may offer
common shares, including common shares acquired or to be acquired by them, through the exercise
of Purchase Warrants at prices, and pursuant to terms set forth in the Prospectus.
Copies of the Prospectus
York off»ce/14 Wall Street.
Like
Share
E, J. O'Rourke, Jr.
„
ton
per
a
securities
busi¬
offices at 423 Vz Oak St.
burger, Loeb &. Co.
December 3, 1956
Sutro Bros. 8C Co.
M.
&
Co.;
Marks
Kaufman, Goldman,
Co., alternate.
>
next year,
Parker,
Morgan Stanley & Co., Chairman;
Bennett, Jr., Wertheim & Co.; F.
firm is William D. Anderson.
$1.32 and President Knapp hopes
hold
C.
nominating
L.
*
estimate
year
-
Pub*
Co.,
&
Wallace
Mr.
officer.
Also
many
were
M.' Krensky
worked
printing requirements.
This
/
-
Publicity
Lee, Jr., White, Weld & Co.
Adams
the
Middendorf, Wood;
Co.
&
Chairman,
securities
a
Principals
Robert
are
at
engage
business.
an
many
Illinois
^
Geruldsen & Co. has been formed
with
William
Struthers
(Special to The Financial Chronicle)
ated with the Eilert Co. since 1927.
For
John
Earnings have been better than
Laboratory. The new Greenwich
Killingly Expresswav, providing
easy access to the New
,
*
,
graphic arts and has been associ¬
com¬
of return
operations.
the
plants
cut
Esta-
.
.
yield of 5.3%.
ings ratio is about 14.4.
(built or planned) include
Kimberly Clark Paper, Combus¬
Com¬
Egbert,
brook & Co.
Formed in Chicago
Eilert
announced
business
company's
rate
of
Association's
Association..'
properties is
time in years,
the
the
on Jan. 1, it
by Merle E. Selecman,-Executive Manager of the
was
Gas
years.
become
now
petitive with
of
partment of Printing
price
househeat-
hopes to reach
company
Osgood
director
come
in 1952 to 14% currently
the
and
O.
Bankers
ing sales; saturation has increased
from 6%
Peter
•
Dept.
Printing Co., New York, will be¬
later
probably adopt straight
gas throughout the sys¬
plants
plants in northeast¬
Connecticut.
Important new
tr.
;
Chairman,'/ Membership
Wallace, Geruldsen
New A. B. A.
(with
is still
The
ern
Commits
Mayo-Smith;
Worthington
Merrill
Dine,-
son,
althougn
gas
erating from either former textile
or new
Coons,
Stanley & Co.
Morgan
mittee:
b
-
S.
Donald
Smith, Barney & Co.
Chairman of its
and
V.
Ijams,
Co.
Vice-President: William G. Gall*
Treasurer:
Weinberg &
S.
&
agher, Kidder, Peabody & Co.
in¬
"traded "almost exclusively in the over-the-counter market. V>:
date it will
wall
now
table
a
have
Langley
mittee: A. Parker Hall, Jr., Shear-
an
Locks, continues to expand at anticipated this year, amounting
location.
In
August a new to $1.30 per share for the
12
one-story plant was com¬ months ended Sept. 30 vs. $1.08 in
pleted by Fafnir Bearing in New-' the previous 12 months (the latter
ir>gton, convenient to its head¬ was affected by flood expense).
Manufacturing is planning addi¬
manufacturing units- near
Waterbury, its headquarters.
C.
chairmen
Maitland
President:
the
to 172 years.
up
Weinberg,
modern
tional
given
60-page booklet containing information
a
this
Scovill
be
committee
and
1957:
Chairman, Entertainment Com*
benefited by
content)
from electric
Britain.
will
also
some
•-
gas '
reformed
or
Division
New
officers
for
all registered exchanges combined;
sor
in
differs
business, Mr. Statter said.
individuals
Nominating Committee has
the following slate lot*
*
ard
quarters
it
speaker.
stocks,
"rights"
a
.
The
Exchange
&
guest
as
that municipal, government,- corporate bonds, bank and insurance
retained ^earn¬
The company
interested
mately .3^5Q(Lsecurities listed
About one-third of the
accruals
how
and
Securities
Hoc;
Chairman
presented
generally does not know that the shares of some 50,000 different
complies have a market over-the-counter, against approxi¬
year
during the past
as
comparable to
of United
Aircraft,
Bradley Field in Wind¬
;
aver¬
a
up
Publication
$100,000,000 will probably be
raised
internally from deprecia¬
plant of the Hamilton Stand¬
near
an
million
Samuel
the board i of
state,
in the various
sponsor
series of advertisements explain¬
over-the-counter,
the
5, with the
Armstrong,
Commission,
annual
sixth
its
Dec.
on
Sinclair
of
Exchange Markets, and presenting additional
which
on
terruption for
/
•/ v
the
spend
$25
construction
new
—the
in
growth
and
phases
securities
With anticipated continuation Of
substantial
the
dinner
J.
held
York
of
Association
Investment
The
New
America's oldest and largest security market, explanations of
various
begun installation of 106,000
new
bhilt
on
82,000 kw unit which
•';>////-a/'•; VU/:
of
will
group
newspapers a
opportunity of obtaining
r
into operation next year;
and Hartford Electric and CL&P
large cities in
does
are
go
kw units.
Holds Annual Dinner
Dealers
the over-the-counter
on
Investors
United Illuminating is
an
area
functions
information
under construction under this
now
agreement.
the
plans, with
Three units
Security
from the auction and
'
•
postwar
generating capacity
r i p 1 e d.
Both Kwh
and
has almosKt
ing
co-ordi¬
for
ago
years
pooling of power;
mpre than doubled in the
decade,
Metropolitan
largest electric util¬
of construction
York
/market, the security dealer's
-
two
have
Electric sales and
and oper¬
controls so
one,
same
ities in the state signed an agree¬
gas; nation
and
latest
the
a
negligible;
will
increase
capacity about
106,000 kw in 1958 or about 14%.
which approxi¬
mate $70,000,000 a
year. Resident
tial sales provide 43% of
electric
revenue, commercial 17%
dustrial 26%. Residential
the
be
it
sales
and
with
will
; that labor costs will be
with
electricity are Waterbury, New
Britain, Bristol, Meriden, Norwalk
and
of
ated
.
unit
Devon
new
twin
two-
state
by area, and
about 39% by population.
Among
the
The
New
N. Y. Inv. Association
Association, comprising
leading over-the-counter securities firms, is embarking on a
new
educational advertising program, according to Eugene G.
Statter, of Hoit, Rose & Company, President of the Association.
On the basis of its
experiences through a similar previous
program, when it was learned that the public is extremely anxious
-to gain all
the knowledge it can about the over-the-counter
By OWEN ELY
15
(2395)
16
in
THE MARKET... AND YOU
WALLACE
By
wells it started.
have
last
The threat of
a
rather conclusively
wiped out this week with the
year was
list
exploiting the promising
equipment shares, after hav¬
ing been neglected with mo¬
notonous regularity through¬
putting on occasional
strength that was the best in
petrochemical field.
months. There
was
still
It
out
Equipments Perk Up
in
was
general
a
,
bull market,
most of the
only
if
issue
recovered
if
that
has
never
any
with
great
profit-taking to be absorbed were finally perking up as the enthusiasm from when the
and the feeling was rather Suez incident made it fairly
company had its troubles is
widespread that the rebound sure that expanded explora¬ United Fruit. The stock has
was both too
spirited and too tion in this hemisphere is def¬ been
bumping
around
its
early for the full-fledged initely in the cards. Dresser
year's low despite earnings
year-end rally treatment.
Industries, as a matter of fact,
comfortably
ahead of
last
was
prominent in the 1 new year and with the dividend,
Like the market
generally, highs column of the week offering around a 6 V2% yield,
the domestic oils were able to even though its stock split is well covered. The stock has
and
not
particu¬ been
show good demand and occa¬ imminent
hovering below the $50
news
any
more.
The level for sometime against
sional profit-taking and even larly
new
shares, as a matter of the
the
international
oils
were
$70-plus that it sold at in
fact, have been trading on a 1951 before its Latin-Ameri¬
dble to
make
some
uphill
the Suez situation
progress as
seemed to be
quieting down.
❖
#
able
also
to
forge
*
were
to
new
can
rior Oil,
feature was Supe¬
currently the highest
priced
issue
Stock
tacked
the
on
New
Exchange. It
$132 last week and
on
then added another
$100 in
a
A.
steered
from it.
if
Smith
O.
the
in
same
their
point in this, issue is that it
have
will
that
prices,
the
lift
to
of
out
protracted doldrums,
benefit United Fruit but
had
little
effect
the
on
year
equal its high of stock. Rising cargo rates, too,
which was posted because of the shipping
during the summer rally. The shortage are an added boon
others have been able to push
to United Fruit.
was
finally giving some com¬
into new high territory with¬
petition to the $ 1,332 peak
in
the last
Neglected Retailers
month, making
recorded
in
1948
by Coca- A. O. Smith somewhat
Retail stores, too, have been
lag¬
Cola International which was
a
somewhat neglected group
gard.
the highest
tag recorded in
although lately they
have
modern
times
on
the
ex¬
Shipbuilding Pause
been given a mild lift by the
change.
Shipbuilding shares called approach of their seasonal
couple of sessions this week
to
erupt into the $1,300 price
tag bracket. In that area it
Pressured
Issues
the
Improve
recent
So far in the
ket
improved
beneficiaries
the
most
including
sure,
chemicals
Pont,
and
and
which
pres¬
of the
some
especially du
the
aluminums
also
have
had
papers,
flated,
able
were
there
issues
recent
sledding. The
but
mar¬
quite
logically have been the
under
time out for
wasn't
tough
well de¬
to
steady
much
fan¬
fare to it.
the
a
rest after their
superior
consensus
action.
But
that there
was
sometime before the concrete
results
of
all
the
work
new
flooding in will become ap¬
parent
in
the earnings
oil well supply issues
expanded by one new
when
came
Dover
Corp. be¬
Exchange list¬
Stock
a
ing and the stock lost
in
getting
to
a
make it
a
#
$
:Js
has
only been pub¬
licly owned for
half,
a
formed
units
from
in
company,
pleted
ago,
around
after
its
the
good
popularity to
4-for-l
an
own
combination issue in that it is
definitely high in the ranks
ular
and
makers,
a
com¬
year
time to build
earnings history in its
on
a
pro-form
basis has been able to show
a
fairly steady growth in sales
and
a group pop¬
currently with investors,
is an important factor in
Oil is another of the combina¬
The
tions, mixing its sizable petro¬
leum business with
earnings. At its trading
inaugural the stock was sell¬
shipbuild¬
ing for another double hedge
in
a
different line,
*
Service, despite the
popularity of domestic oils
generally, has been no threat
to its year's
peak. The com¬
more
however, is
promising
one
of
all
oyer Europe after World War I, our State
Department is always wrong and the foreign
governments right.
Eisenhower has just won
another land¬
slide victory at the hands of the American
he
that
of
against sales improve¬
of only around
17%.
one
of
the
to
out
us
Well,
actual
Dulles
small
no
this
measure
was
foreign policy, at least to the extent
got
war.
the
the
field
him
kept
has
who
this
hear
to
and
war
man
in
work
and
of
is
out
doing
us
been
John
discussed
Foster
the
by
pundits in the great propaganda gallery of the
Press Club you
would think he is
Enemy No. 1. In the opinion of these
Carlisle Bargeron
foreign experts he has never done anything
right. It is a queer characteristic of our for¬
eign correspondents that they have this attitude.
It is not an
National
Public
attitude of theirs towards Dulles alone.
American
every
Secretary
generally
reflected
our
of
enterprising
Britain
with
the
.
France
to
the
-
developed
mess
pundits
radio
and
about
too
'
V
.
.
Eastern
report
is
Apparently to be a
smart
or
intellectual
press.
is
.
attitude
their
and
American
Middle
It is their attitude towards
State
Department
the
how
hied
more
themselves
losing
were
we
our
to
favor
governments
not
no
It
news.
anti-Americanism
Oh, there
But
too.
the
of
and peoples of those countries.
To my
single reporter has been sent around these United
finding out the attitude of the American people.
This
States
was
in
State
newspaper
and
knowledge
was
the
France
and
was
a
rising
tide
of
Britain.
about Eden's and Pineau's unpopularity,
news
thing
there
that
news
was
in
foreign correspondents seemed to enjoy
that Dulles had jeopardized the North
American Alliance, that Russia had been very clever in finally
dividing if and separating the United States on the one hand
most
writing
Britain
and
Such
the
we
and
was
France
had
British
the
on
criticism
the
of
effect,
other.
our
to
foreign
own
office in this
extent, of rallying
large
very
a
French
and
behind their own governments when at
hostile. The United States has now become
scapegoat of the British and French policy.
And apparently
are going to have to
pay for it.
first
the
our
about
printed
has
country
they
We
were
going
this
going to have to pay for it in loans to the Western
nations with which they can buy our oil and we are
to pay for it in the increased prices for oil in
to
have
With a hard winter coming on this will
domestic consumers to say nothing of
country.
pretty
will
very
"are
European
industrial
to
mean
mean
a
what
to
penny
Now, I
it
users.
this would have
come about, very likely, without
foreign correspondents who seemingly always see
foreign government's view. We have a stake in Britain and
France, of course.
We have poured out billions towards the
recovery of their economies.
To permit disastrous unemployment
the
aid
of
say
the
the
in
now
either
Germany
But
and
if
of those two
and
other
the
France
they
question
if
they
countries, not to speak of Italy, West
nations would simply mean that
friendly
would have to start all
we
over
arises
are
not to continue to
are
with
a
Marshall Plan
what
to
as
not to
is
continue to
for Europe.
stake
our
be
in
Britain
imperialist nations,
have their colonies
or
their colonial
influence.
Economically, they in themselves, that is Britain and
nothing.
They do have something through their
colonial holdings.
France,
of those rari¬
have
Are
we
to
continue
to
countries; encourage them
If
nationalism
encourage
to act
up
in
the
Arab
against Britain and France?
why continue to be the protector of the British
so
and
French
economies?
6%.
There is another speck in
said
now
to
the ointment of the
ease
which
is
be
coming into the Middle Eastern situation. And
is, that it is very doubtful if Anthony Eden will ever again
have a close understanding with Eisenhower.
Eisenhower doesn't
like
to
be
doublecrossed, as he was when Eden and Pineau,
undoubtedly in abetment with Israel, moved into Egypt.
that
Electric
another
only
Storage Battery is
issue
that
sells
at
more
shade
a
than
its
working capital alone, with a
yield of around 6% and
Ghase Manhattan Bank
recently
To Increase Int. Rale
over,
in
earnings. Moreprojections
company
point to
higher earnings
next year in view of the ris¬
ing trend in effect and vari¬
ous
even
diversification
\The
article
time
al¬
steps
views
do
not
in
expressed
ihis
necessarily
at
with
coincide
M
On
of
those
Savings Accounts
The Chase Manhattan Bank yes¬
"ChronicleThey are presented,
those of the author only 1
In F. S. Moseley Go.
BOSTON,
partner in F. S. Moseley & Co.,
a
will increase the interest rate paid
the
savings accounts from 2xk% to
on
deposits from
$5 to $10,000, effective Jan. 1, 1957.
per
The
annum
$10,000
be
will
bank
21/2% per
annum
on
continue
on
compounded
Interest
and
Exchanges.
charge
partner
mus,
City,
Stock
63
in
De
Wall
members
Coppet
Street,
of
Exchange,
the
New
New
on Jan.
1.
Dore-
H.
Edward A. Fischer
Jan.
A.
with
York
G.
H.
Fischer,
Walker
City, passed
associated
&
away
Co.;
New
Nov. 2*
1,
Rudolph
Weeks
of
Stock
is
in
Municipal Depart¬
Edward W.
G. Nettel.
KlussRobert
Clayton, Jr., and Edwin J. Fitz-
patrick
Edward
Mr.
the
members
Boston
Admit Four Partners
credited
On
York
York
of
and
Orvis Brothers to
man,
become
&
Street,
York
will
De Coppet Partner
Henry W. Putnam will
New
ment.
quarterly.
a
Congress
pay
amounts from
$25,000.
to
to
Mass. — On Jan. 1,
Weeks, Jr. will become
Robert S.
50
any
the
mm
Weeks to Be Partner
terday (Dec. 5) announced that it
3%
as
oil
bring
in
and
voters
due to his
since
43% im¬
of the
opera¬
tions has been able
a
ready taken.
#
ing at less than 10-times-earn- companies in the business of
adding to reserves. The com¬
ings and on a yield of nearly
pany in its tideland
5%.
cess
Cities
pany,
to
provement in earnings in two
years
proposed
intriguing
an
results
its
shipbuilding operations. Sun
only
acquisition
right but
of
a r e
the
split, is
*
up
sh
which
was
business.
no
year
Steel,
a
best
selling below book value
yet offering a return in ex¬
smaller
four
which
has had
a
it
Bethlehem
of steel
'
••
•
and
time
good early play
prominent item.
♦.
Dover
no
the
1949. It adds up
to
ties
Combination Issues
owed
show
The stock is
Intriguing
among
year
ment
The rather limited selection
face
II.
ex¬
panding aggressively and the
was still room on the
top for
program has started to show
the companies that very re¬
up in the operations reports,
cently were struggling for
including
record
highs
in
new
orders. The Suez Canal
sales
starting in the
1955
shutdown changed all that in
fiscal year. Profits continued
a
rush, although it will be
to climb into the 1956
column.
was
high activity period. R.
Macy, for one, has been
it is inevitable that
of course, but
reasons,
paying the bill for the British-FrenchIsraeli adventure in Egypt because of the attitude of our foreign
correspondents.
From the beginning, Dulles has been wrong
in their eyes and if you will look back over
their record since they came to be established
thing to be.
Immediately
issues
sugar
other
are
this country should end up
yet to
the
prime
By CARLISLE BARGERON
There
critic
if
sugar
been
able
have
has been doing better
recently with a pause now
and then but the significant
group
has
inves¬
;,
if
Rising
odd
York
problems
tors away
*
*
❖
An
and
basis
highs.
*
.
when-issued
of the News
a
if
An
Thursday, December 6, 1956
.
.
Washington
Ahead
prices would be sell¬
debut since the other oil well
for the
From
of
far and
so
timely
Oil
low in
new
year's results
Earnings
ahead
shade over 10times the projected profit for
the full year. The company,
moreover, has been actively
ing
the industrial average
well
moved
at recent
STREETE
.
than half of the wild¬
more
cat
some
Financial Chronicle
The Commercial and
(2396)
Orvis
will
become partners in
&
Co.,
14 Wall
Brothers
Street, New
of the New
York City,
members
York Stock Exchange.
I
Volume
Number
184
5592
.
.
.
The Commercial and Financial Chronicle
(2397)
dustry.
Automation and Onr Future
The
lends itself
matic
in
process
more
control
one
face
case
it—and
easily to %uto-**will be
than
his
others:^ use his head
in "the
Steel, automobiles and textiles
job should
automated. Then
and
trucked
can
point.
he
less amenable to Automation than<
;
Facing squarely up to the charge that automation causes
unemployment, IBM President predicts the process will do
the opposite, and become known as the Great Emancipator
for the working people. Mr. Watson envisions all factory jobs
becoming white collar jobs, and avers that survival of the
U. S. standard of living "depends on our ability to produce
more
goods with relatively less workers." Credits electronics
with being the "missing
link" in permitting financially
feasible
and
^
I
.
want
subject,
word
by pointing out machines
men
discuss
to
favorite
This is a
my
Automation.
today
creased
work
of
life
us
almost
.
Some
forbid
agination.
Perhaps
>
And
ther
j
Talking:
about this
and
as
unemployment,
inal.
are
never
m?s 3je
They don t
lend
.
,Yn™lg~ great admiration.
<
remove
to
achieve
parrots repeating people
doing things which haver
call this programming
.
.
.
the
soon
was
truckers
in
more
other
as
.
.
.
essentially
or
there
that
for
crude form of
a
of industry,, dustr^ is one of the few that my
replace men. own company has looked to with
They:
pipelines and other improve¬
,
.
does—-the
THINK.
shipping
Automation—just
today's unpleasant jobs are be¬
ing taken over by machines.
Ever since that day, oil workers
have been finding out if they have
increasingly better tools to work
progress!
with, they constantly make more
j wish I knew more about your money. In 1910, the average
industry ■ than I 'do
but the hourly pay of a production worker
little*I have learned has caused in the oil industry was about 25c
in 1939, it was 96c
today,
me to have great admiration 'for
oilmen, Quite frankly, your; in- those average' hourly earnings are
for
and
schievinff
telling
.
.
.
.
$2.70, almost triple the 1939 rate!
As you know, examples of Au¬
We have tried
hourly-rated
executives
the
vious in the refinery than in the
field.
our
-our
.
tomation have been
same^Very.high goals that
been cnrefully tsu^ht to^tireffi,
against
could
we
back
step fur¬
guarantee
a
a man
the
The disagreeable work of trans¬
porting oil by truck was ended by
in many areas
machines can
Automation.
a
don't
to
; lines.
Industry
J
.
doubly clear; let's
could go
we
i.-."
Automation in the Petroleum
J110?® difficult and expensive it is
AreP
e- lin ky machine. -
further
any
industries
plex thei job that
the principle and say that
by law in the United States, we
defies the im¬
be happy!
can
industry
own
themselves to Automation at the
present writing. The more com-
employment.
To make this
your
the
ing of your wells and in the. proThe history of your industry re¬
ducing of your oil, a high amount garding Automation can be helpof machine power—a
relatively ful to everyone studying the sublow amount of manpower to the
ject. * It's a classic example of
great benefit of everybody in-' courageous use of controlied
volved.
power being rewarded by great
reverse
important to all of
<
in
a very high
application of power both in the drill-
concluded that the processes in
the aggregate always result in in¬
■—and its future importance to the
American way
ment—he
Clearly,
there has been
will think.
never
ments
,
distinguishes between automation
automation,, and
God gave us all heads; to use. He
can
have
pride of accomplish-
are
oil
However, the
progress of
the industry vwas so stimulated by
for the pilrpose that
petroleum.
By THOMAS J. WATSON, JR.*
President, International Business Machines Corp., New York, N. Y.
the
17
every
you
When
all
fineries
dsy
-A it wWt alwavs
*in
with
nptrn
wasn t always so in petro
IeunH
<
1
But
the machine cannot
con-,
A century ago, the oil industry
ceive of new things—take a few was in its infancy. It used much
known
facts and
by combining manpower — and some steam
them,and THINKING;,; come»Up-' Power./'Each oil well bad its own
with an entirely new thought or boiler, and: fengine. Each required
invention. This coheeptidhVorift** two ^ men to operate it working
venting
ability is what -has "tours;" from noon to midnight,
the machine what to do and When
one
the
industry
were
or
ob¬
even more
began,
small
two stillsv
i
re¬
operations
The stills
charged and their contents
by heat until only tar
This took half a week,
industry is
step back
with good luck, so that the weekly
like
carrying
along this line, you can easily see
coals to Newthat
in a
capacity of a refinery was about
misguided attempt to
double
its still capacity.
About
castle, for
preserve
high employment, the
the turn of the century, continu¬
cost of a product would be pro¬
your industry
ous refineries were designed which
leads the way
hibitive. The cost of an automo¬
in the appli¬
probably would have put still
bile, without power tools and Au¬
brought all progress in the world* and from" midnight to noon, six operators
cation of this
out
of work
if
the
tomation, might well be $50,000.
and it has always been done by
days per week. In 1869, David petroleum industry had not been
T. J. Watson,. Jr.
At this price the market would
philosophy
men
men
who increasingly Yanney erected a big boiler and
but perhaps a
be gone, and the industry would
growing so rapidly.
use
machines
as
tools
to
help Piped steam to six engines pumpshort review rfeay give all of us be dead.
Automation is even apparent at
them. This is man's best work and
*ng s*x wells. This apparently
some
new
ideas—and
Is it new
or is it old?
Of
studying
the wellhead today. Central pro¬
the results of Automation in the course it's old because it has been as we progress, man will be doing was the first small step on the
gramming of
pumping stations
more and more
of it—while ma- r°ad of Automation in Petroleum,
petroleum industry gives us a going on since before the time of
chines do the drudgerous, boring, By 1880, several wells were con- pumps each well each day in ac¬
Christ. Some of the water-pump¬
pattern to apply elsewhere.
cordance
with the existing "al¬
dirtv work of the world.
nected to one engine by walkingYou hear the word daily now¬
ing devices of the Egyptians in
lowable" level and without human
How often have all of us seen beams- Thus> one man could Pump
adays. To some, it seems a night¬ 2000 B. C. were automated so that
^
nnmLnlc30 wells and get from them as intervention, except for inspec¬
mare; to others, a great industrial they operated for days and weeks
much °» as was eroduced under tion.
promise for the future, but it's in¬ without the intervention of human
It is obvious that the oil indus¬
K? machine. In our French 53 the original system with 30 boilFrLf-h fac
by
handsL
teresting to all.
p-pq
thirtv prmino^
and
SO
men
try
embraced
Automation long
Is it a specter or a savior?
tory a few weeks ago, I saw a man
g
'
Defines Automation
before the word was coined.
running a punch press and proDriving here in Chicago re¬
;
I suppose before I go any fur¬
ducing washers. All day long, the
Meanwhile, Samuel Van Syckel
cently, I noticed a sign on the La
Created $15 Billion Industry
ther, I had better define Auto¬
Salle .Street
bridge which said: mation as I understand it so we machine punched out thousands constructed a two-inch pipeline
In the last 20 years, Automation
of washers while the man pressed between
BRIDGE
BEING
REMODELED
Pithole, Pennsylvania,
all know what I am talking about.
has
helped petroleum grow up
TO
buttons for control. I thought of and a loading point about five
PERMIT
OPERATION
BY
Automation is the process mak¬
into a $15 billion industry. Today
ONE MAN INSTEAD OF TWO.
his pride of accomplishment at miles away on Oil Creek,
ing machines—sometimes simple,
oil and natural gas account for
I
later
learned that
all of
the
night compared to yours and mine.
This pipeline was a threat to
sometimes
complex — that run
Continued on page 40
He has a shallow, boring life—let's
the teamsters who formerly had
bridges
crossing
the
Chicago other machines
machines do¬
River
are
being modernized in ing some of the work of men
subject
people
all automated processes and power
tools from the automobile factor¬
to
in
the
oil
ies
in
Detroit.
As
to do it.
we
-
were
distilled
was
left.
..
.
.
.
.
.
.
.
™
'
_
.
The
manner.
of
purpose,
course, is to permit better traffic
flow—both highway and river—
in that highly .congested afea
equally important, to
This
is
scale in
and,
moneyi
save
Automation
on
small
a
simple enough applica¬
tion so that it can be thoroughly
understood.
Probably in that La
a
Salle Street
bridge,
lars is
investment
an
of several hundred
thousand
dol¬
being made to replace
one
man.
Is this because
man
is unimpor¬
.
Usually,
Automation
is
selfchecking or self-c o n t r o 11 i n g
through the use of "Feedback."
Therefore, is controlled power. In
your catalytic cracking plants, in
our own use of computers in busi¬
ness,
"Feedback"
is frequently
mentioned.
that the
in general, is
being replaced by machinery—or
is it perhaps quite the opposite?
Is this investment in the bridge
coming about because of the vast
"
means
rect themselves
of
the
the
oil
against
the
process,
of
product
their
-
standard and the correc¬
a
tion of the heat of the furnace and
other
factors
to
oack
product
In
.
Walter Reuther's
Statement
ate
ter
is
true.
vestment,
a
more
For
reasonable
a
one man
in<-
is freed to take
challenging job—and
the
job he leaves is made mor*» in¬
teresting to his companion. This is
sometimes
called
"Job
Enlarge¬
ment."
The replacement of men
by machinery is being made
cause
of
the
men—not
vast
importance
because
of
creasing importance!
ther
said
200,000
earlier
000
their
of
de¬
Water Reu-
this
automobile
be able to do
be¬
the
to
norm
result
In
...
and
machines".
address
36th
Annual
tute
Meeting,
by Mr. Watson before the
American
Petroleum
Chicago, Nov.
15,
Insti¬
i956.
are
share
being offered by the Corporation to holders of its Common
Stock for subscription,
subject
to
the terms and conditions set forth in the Pro¬
spectus. The subscription offer will expire at 3:30 P.M., E.S.T., on December 17,
1956. The several Underwriters may offer Debentures pursuant to the terms
and conditions set forth in the
Prospectus!
it is simply the
.
a
the
placing of
more
more
.
.
machines and
under the control of
power
a
Copies of the Prospectus may be obtained in any State only from such
man.
result?
net
result
of
power
behind
United
Subscription Price 100 %
by
manner
.
every
It is
States.
the
workers
Well,
is
course
see
of
amount
in
to
the
put
net
ple,
uses
much
more
worker in the
interesting to
power
various
behind
LEHMAN
industries
much
times
Petroleum, for exam¬
nearly three times as
power
per
steel—over
as
as
worker
five
as
times
automobiles—and
much
as
of the several Under¬
such State.
writers, including the undersigned, as may lawfully offer the securities in
in America.
and
*An
.
of machines in
the
Yet, repeated investigations and
studies of the application of power
and automation
to industry
has
The Debentures
more sophis¬
the men who
design them and employ them
use
ticated
The
the truth.
Convertible into Common Stock at $40 per
computer,
proceeding with
This* is "Feed¬
.
1,1981
intermedi¬
So, Automation-is not what the
Monthly" has recently
it:
"the uneasy, halfembarrassed rivalry between men
may
1.000,-
.
Due December
described
workers
presently employed in the in¬
.
a
an
AVi% Convertible Subordinated Debentures
"Atlantic
single
dustry
because
of
automation.
Nothing could be further from
.
back."
that
of
before
problem
year
the work
.
machine
a
the double check of
I think it is obvious that the lat¬
oration
analysis
refinery
the
back
of
j
accordingly.
needed?
men—because
offer to buy these securities.
$30,154,700
alyze the work that they are doing
as it affects the product and cor¬
shortage today—because of
their high cost and the necessity
of using them where they are most
of
an offer to sell nor a solicitation of an
The offer is made only by the Prospectus.
an¬
It
adjust the final
to a standard
tool, the analysis of
the dimension of the product, au¬
tomatically, and the resetting of
the tool to bring the dimensions
importance
This announcement is neither
au¬
tomated machines are able to
In
Is it because man,
.
the automatic control of power.
tant?
*
,
.
.
.
this
t
iron
as
fifty
the apparel in¬
December 4, 1956.
BROTHERS
18
The Commercial and Financial Chronicle
(2398)
.
.
Thursday, December 6, 1956
.
r
i
.
Exports Mean Jobs, Too
Foreign Economic Policy—Sins
Of Commission and Omission
EMILIO
liberal international
Standard Oil official notes that private'
capital invested abroad has been very substantial, which, on .
a realistic gross instead of net basis, exceed* our government's
r economic aid;
and points ont that business realizes the tick- w lish problem confronting our government in weighing govern:
ment aid versus.private capital.
Author suggests: (1) aid *
—dectsioas should also consider private' capital treatment by
recipient countries; j (2) Trade Agreements Act be imple¬
mented by joining the O.T.C; (3) greater recognition and; *
support for private investments abroad by ourrtiwn and by ■
foreign governments; and (4) ^Congressionalforeign invest- 0 In
emphasizing the vital place of
more
>
-
ment
revision.-
tax
'
i
maximum
would
like
briefly
opinion, has been
has been wrong
country's foreign eocnomic
policy
in re¬
what,
in
right
and
in
discuss
to
our
my
what
cent
not
years—..
forgetting
other
that
countries have
sins
their
c
of
s~
and
n
o
i
in
m
o
i
s
omiss on,
too.
Our govern¬
has
ment
rec¬
how
ognized
important our
foreign eco¬
nomic policies
and
are,
Lrnilio
G.
Collado
a
,
only
controls
non-dollar
over
dollar
expenditures which we
are
continuing to make in order
to meet the political
tensions in
the world. Today's events appar¬
military
ently have led
the
the
of
end
the
and
military
alliances
and
nent part
of
abroad
support of our
allies
are
a
perma¬
international
our
eco¬
nomic life. Actually, though, these
contributions
age
are
the
to
dollar
short¬
extraordinary
an
factor.
We cannot afford to become
The
placent.
problems
from
com¬
international
the
of
world
trade
in .just .normal
ment.
The
The
Gray
S.
Congress, and the adminis¬
to
certain
a
Eng. — The strange
behavior of the price of gold since
the beginning of the present crisis
in the Mi/idle .East has been sub¬
ject to much
extent,
of world
cause
:
trade;
time
aid,
of
course,
has
integral part of our over¬
all
international
economic
poli¬
cies.
Despite the fact that we
have been dispensing such aid for
many years, I have a feeling that
public opinion is very much con¬
fused on the subject.
On the one
far
are
World
Trade
Influence
:
imme-;
-•
morial there
an
hand
is
there
desire for
rather
a
was
rise
the
p r
in
i
a
of
c e
gold each time
there
was
feeling of
a
un-
the
are
make
tives,
fixed
the Suez crisis in accordance with
this
conflicts
mo¬
the burdens of our
supply the money for
and
must
we
there
is
recognize
simple way out
no
single for¬
mula
to
decide the
appropriate
amount of aid, if any, for a par¬
this
of
has
well-established
been
a
premium
their
on
rule.
There,
sharp increase in the
coins compared with
•
no
dilemma,
-
have
not
the recommen¬
or
have dissipated the
some of the good
actions
adopted
dations,
effect
of
have
we
taken
by
actions
other
which have brought strong unfav¬
orable psychological
In
abroad.
taken
other
reactions
instances
time
it
has
implement
example,
in
1951
the
Rockefeller
Report
suggested establishment of an In¬
ternational
Finance
Corporation.
Only this year has it come into
being.
We have, in fact, pro¬
gressed only part way toward the
long
a
to
recommendations.
achievement
economic
Gap
of
the
of
has
arisen
when
sounds
been
complacency
gold
that
hear
we
abroad .are
of
Yet
has
reasons
feeling
reserves
foreign
Solved
Not
the
nations
sound
a
policy.
Dollar
One
of
For
how
accumulating
and
dollars.
It
ments
of
Act, and
15 %
the
bullion value.. On
the other
cases
with
that
dollars
than
we
relax.
can
they
earning
need
more
that
and
Apparently
we
are
achieving "trade not aid" in the
important trading areas of
the
world,
Europe
and
Latin
most
America.
and
Direct
economic
credits have declined
cantly.
Whereas, in 1949.
amounted to $5.4
have had
though
military aid,
ments.
in
promises
our
most
on
important
trade
the psychological
was, and is, great.
in the
form
the
little foreign exchange. Al¬
together it would seem that these
dous,
as
we
Congress
tention
as
has
accumulations of dollars by other
tion
of
signify
the dollar
the
solu¬
pays
to
Louitrvilfe, Nov. 12,
J S*5€.
a
such
been
points out
recent
Council
to
obtain
tremen¬
are
know,
and
the
also
believe
that
international
our
ties
groups.
shown
in
so
book,
on.
Actually,
repeated
convincingly in his
published
Foreign
for
the
Relations,
Industries," public opinion in
is
far
liberalization of
than is the
favorable
rpore
our
trade
Congress.
—
own
much
the
economic
investment
of
private
abroad.
The
and
government
by foreign
;
ments by* the
policy state¬
administration and
by£ the' "bipartisan
have
left
question
no
of
such
They have recommended
support.
actions,
many
commissions
executive,
some
legislative,
to
encourage
private investment abroad, but so
far
to
policies
of
number
a
these
recom¬
have
not
been
imple¬
mented.
One
with
recommendation
had
to
do
diplomatic support by all of
official
our
sentatives
agencies
abroad,
It
and
is
repre¬
not
easy
to
generalize about the accom¬
plishments, or lack of them, in
this
area.
though,
It
based
is
my
on
impression,
experience and
reports from our foreign affiliates,
that
country's foreign service
people have been taking an in¬
creasing
interest
in
trying
to
our
obtain
•
'
if it could
even
altogether.
As
increase
both
*
•
an
understanding
of
Continued on'page 39
of
not be eliminated
result, the sudden
a
the
for
demand
in
sov¬
un¬
Hence the sharp rise in
the premium.
Middle
East
Another
between
Other
and
Hoarding
for the
reason
contrast
the
tendency of sover¬
eigns and bullion lies in the fact
that in the Middle East sovereigns
are the favorite medium of hoard¬
The
ing.
international
uncertainty
East
even
affected
political
Middle
the
than
more
by
Europe, and
countries must
Arab
itself
made
felt
in
Western
This
markets.
demand
entirely
was
market
.
12c
and
15c
an
ounce-
Coins
Are
Up
Bullion
and
„
Russian
troops and the frontier
the Hungarian puppet
display such zeal in
preventing refugees from crossing
guards
of
Government
the
border.
caught
are
gold coins
is
only
confiscated.
are
popular
weakness
explanation
of
the
increased
than
bars
at
premium
and
discount.
a
explanation
Hoarders
have
is
two-fold;
potential
hoarder^
coins .$0
bullion./Throughout the postwar
coins
substantial
have
commanded
premium
bullion
value
even
recent
years
that
clined
periods
uncertainty.
a
their
over
though during
premium
considerably.
Its
Gold
of
bullion during the pres¬
indicates the beginning
twilight of the rule of gold.
true, the extent to which
is
It
is
gold
of
de¬
increase
mestic
"to
limited
market
because
they have to be weighed and the
ordinary
hoarder
is
distrustful
their
fine gold
coins
with
content. He
which
he
familiar and in which he has
Postwar
confirmed
his
even
experience
faith
in
though
have been counterfeited
is
con¬
has
coins, be¬
sovereigns
on
a
very
purposes
the
circulation
note
do¬
and
con¬
siderably during the last quarter
of a century.
The popularity of
gold as a medium of hoarding has
always
been affected by
termination
raise
to
not
the
of
the
buying price of
other
the de¬
United
States
official
dollar
gold and
of
countries
by the
Britain
not
and
to
devalue
their national currencies
in terms
of
gold and dollars.
So
long as this attitude contin¬
gold is not a suitable hedge
against domestic inflation unac¬
companied by' a depreciation of
.
ues,
the
exchange value of the
cies
the
of
countries
a
and
the
secure
credit structure has declined
have
cumbersome
are
for
used
reserve
of
cause
1
'L
crisis
of the
On the other
fidence.
\*
Rules
gold
ent
bars
prefers
political
acute
Nobody should imagine, therelore, that the decline in the price
during the present crisis indicates
the
degree
of
this
preference.
about
of
Still
determination
preferred
always
period
This
of
siderable
The
are
their
example of the extent
gold coins are still used
during
A
who
and
one
which
Down
Refugees
searched
Gold
mendations
British
practice
,
rather
thisi country,
In
the
confined to sover¬
price of
Other
gold
coins
were
gold declined to 250 s 8% d an eigns.
ounce
on
Nov. 27.
On the basis marked up in sympathy with the
of the current rate of exchange appreciation of sovereigns.
:
According to a Vienna report
this was equal to $34.88. This is
coins were practically 'the
lowest dollar price since the re¬ gold
opening of the London gold mar-; only valuables which a number of
ket. It is slightly below the price Hungarian refugees were able to
out ; of
that can be realized through sale bring
Hungary.
In¬
to the United States authorities.
deed, that's the reason why the
The-London
Gold
activi¬
of
Thanks to the vig¬
counterfeiting in a number of
countries, this source of supply
has
become
materially
reduced
European
*
more
governments.
great deal of at?
"What the Tariff Means to Ameri¬
general
tnce,
I
'
con¬
the reduction
against
markets.
thought and consideration
need
to be given to that third side of
some
surveys, and as Mr. Percy Bidwell
can
shortage.
*An s-ddrons by Mr. Coilc-do before the
Seventh Kentucky World Trad* Cvnfer-
all
damage
individual
industries
very
must
from
pressures
exemptions
Al¬
cases-
woolens—
•
nately,
The
The
only a small
itself. ^-Unfortu¬
and
balance of pay¬
Technical
aid
generates
countries
have
groups
year
abroad
empty.
are
bicycles, and
themselves
effect
feeling
special
impact, it is di¬
from
growing
signifi¬
billion.*
ac¬
great deal to do
a
such aid
of supplying arms and
equipment,
has an economic
vorced
a
watches,
grants
billion, last
it had declined to $1.7
over
which
Treasury
have
between
Economics
large-scale
largely
-
of
the
on
action taken by the
orous
demand
gold bullion is that
final passage by the Congress over
American
it
is
due to selling
capital
by Central
extremely
vigorous
opposition enormous potential help which Banks for the purpose of provid¬
certainly provided a definite psy¬ such investments can
contribute, ing dollars for oil purchases. Pre¬
chological gain for the United
particularly, to,, the future devel¬ sumably several European central
States abroad.
opment
of
the
underdeveloped banks preferred to resort to this
On the other hand, how
disap¬ areas of the Free World,
generally method of financing the abnormal
pointing it is thaty the Congress is
recognized.
countries dollar import rather than draw
Many
failed to back up these
principles eagerly are seeking such invest¬ upon their dollar reserves. Even
this year when it failed to
approve
ments. and many American busi¬ so, the absence of adequate de¬
membership in the Organization ness
enterprises of all kinds are mand to absorb such selling is
for Trade
Cooperation, a mem¬ looking for good opportunities to somewhat puzzling. After all, if
bership which requires no new
go
into business abroad.
And I the international political uncer¬
trade concessions or policies but
am
sure that' United
States busi¬ tainty
induced many people to
which is simply a reaffirmation
nessmen
would
make
increased buy sovereigns, the same consid¬
of
basic
United
States
eration should have induced them
trading investments abroad if there were
principles. In addition, the deci¬ greater
And yet they
recognition, and support to buy gold bars.
sions in a number of escape clause
for their activities, both by
our prefer to buy sovereigns at a con¬
three
arc
tariffs
years
companied the last renewal. The
actual impact of these reductions
probably is very small, but the
ether
nations
three
International
authorization
reductions in
next
though the dollar short¬
age problem has been solved—that
as
the
premium.
supply
come
of
has
tributed towards
the
the
has
result
a
counterfeiting
hand, the price of bullion has been
Rockefeller Report,It is still true that the United
and particularly the Randall Re¬
ticular country.
It seems to me
port in 1954, made specific, and Slates is the dominant world trade
that
each
case
must
be
ham¬
influence and that our trade poli¬
far
reaching
recommendations.;
mered
out
in
intergovernmental
Another group, the Fairless com¬ cies set a pattern for the rest of
bargaining,
with • firm
commit¬
Obviously, then, it
mittee, currently is bringing the the world.
ments
on
the
undertakings by
to
facts about foreign aid up-to-date seems
me,
we
must provide
each
side;/ and that bargaining
and restudying them in. the light positive leadership toward trade
Even at $34.88 it was not profit¬
liberalization.
The United States ought to be conducted with frank
of present world conditions. recognition
of
the
self-interest able, however, to ship gold to New
In my opinion, the previous rec¬ Government has taken construc¬
involved.
York
because the cost of ship¬
The most apparent
ommendations
have
been
good tive action.
ment, insurance, loss of interest
ones, for the most part.
Unfortu¬ achievements, of course, are the
etc.
would amount to something
Recognizing the Third Side of
nately, in a number of areas, we renewals of the Trade Agree¬
the
Report,
as
remarkably weak in all European
aid.
time
some
sovereigns that
market
prepared.
there
humanitarian
our
taxes which
foreign
For
weight and fine¬
.V,"';/"..
ereigns has found the market
an
or
a
understandable
between
full
v-." V''
litical
obvious
Also,
such
unworkable.
of
are
ness.
a
world
policy
tion
certainty
owing to a po¬
e c o n o m i c
simple, concrete pol¬
icy which, once decided upon,
crisis.
On the
could be applied on all occasions
f
Paul Einzig
present
occa¬
without further thought. On the
sion, too, the
other hand,
there is the wide¬ price of sovereigns and of gold
spread realization that changes in coins in general has responded to
the
to be realized."
ever come
LONDON,
,
Probably
Dominates
A.
v-l'-yy.'y'
'
Keyaesian prophecy that goldY value would decline
that of scrap, iron "will
to
....
have
responded to pressures which, in
my
opinion, not only cannot be
justified in terms of the country's ^comment in
general welfare, but have .done
ittj" t h e financial
significant damage to the whole
Press.; Since
that
U.
that the-
industrial.move¬
.
tration
solved.
since
them
war.
to conclude
many
that maintenance of troops
number of bi¬
studied
have
mittees
than
trade
trade, and with
from
the
large
receipts
partisan
com¬
dollar
over
2,000,->
Foreign
a large part of the world
maintaining more strict
by
has
also
,
hedge
'
Actually, the problem has been
solyed in
It
some
-f*
tain their official
workers change jobs monthly
000
EINZIG
so long as those respective countries main¬
gold buying price and do not devalue ex*
change value of their currencies * Author sees no indication
are
the
dependent,
.are
protection.,
pointed out that
been
anti-inflation
.estimate,
which
tariff
on
been
I
1,000,000 jobs which, in
Bid well's
Mr.
many
many,
PAUL
looking into the present price divergence of gold bullion
from gold coins, Dr. Einzig doubts whether in the U. S.
A.,
Britain, and some other countries, gold would be used as an
convincingly.
The
jobs affected by. ex¬
of
times the
trade in world peace,
By
In
demonstrated
ports, for example, is
(New Jersey)
Treasurer, Standard Oil Company
'cies in the interests of the general
welfare
of
the
country can be!
number
COLLADO*
G.
point is, of course, that the
supporting such trade poli-
case
,
By
Gold and the Suez Crisis
The
as
much
on
all,
hand, gold is needed
as ever
adverse
for the settlement
balance
international
gold
has
tional role
as
curren¬
concerned.
of
retained
a
payments
account.
its
Above
tradi¬
medium of hoard¬
ing during periods of wars, threats
war
or
internal
upheavals.
of
There is
the
as yet no indication that
Keynesian prophecy that the
value
that
of
of
self Is
gold
scrap
now
a
would
decline
to
iron—the latter
it¬
much
more
valuable
large scale for the sake of bene¬
fiting by their premium, as far as
commodity
than
it was
thirty
years ago when Keynes made that
is. .known
prophecy,
all
counterfeit
sover¬
eigns that have got into circula¬
realized.
will
ever
come
to
be
Volume
184
Number 5592
.
.
.
The Commercial and Financial Chronicle
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,
The Commercial and Financial Chronicle
(2400)
'
■
"'J. "
■
; A\
"
"
'
1
•
■
'
•:
■
*
.
:
'
Capital Formation Outlook
m
m
II
W9
1
'
For 1957 and the Years Ahead
By ROBERT P. ULIN*
Department of Economics, McGraw-IIill
McGraw-Hill Economist emphasizes new
spending is going
total private
plant and equipment
over 1956, assuring
powerful general busi¬
in 1957, substantially
up
investment increases and
a
boom support.
Does not believe increased manufacturing
investment boom collapse; envisions
over the next few years added capacity to be more in liiie
with population growth and incomes; and indicates business
capital expenditures will continue to increase — subject to
business pauses and immense changes in production techniques.
Without minimizing home building's economic importance,
ness
w hai£ o£ 1957
build-up is not
likely to occur when goods are
moving off the shelves so rapidly.
Moreover, a dangerous build-up
is not likely to occur when funds
for speculation are as difficult to
find as they are right now. Money
is tight.
Bankers are questioning
the purpose of loans and suggestig
firms
tories
their
over
By IIENRY C. WALLICH
Professor of Economics, Yale University
With the assumption that conservatism means many things to
people, with that of Pres. Eisenhower differing from Mr.
Hoover's, Dr. Wallich asserts as its characteristics the belief
many
that the safeguarding of individual freedom should be realistic,
leaving maximum responsibility to each individual. Maintaining
inven¬
rapidly. The financial
large corporations
similar pressure on
more
economic expansion
of
is
exerting
are
their operating divisions.
not
in
to "carry
easy
hopes
of
So it is
little extra"
a
beating
price
a
crease.
Actually,
the
rise
in
the
next year,
and in
risks of
are
nomic
what
with intensified
sions.
on
there
some cases
term
i
n v e
practice, capi- size my forecast:
tal * is
money
invested
l
d,
a n
ings
or
in
—
buildequipI
consumers,
suggest,
an
automobile
or
!l?ve_.ls 2%
tal
much
as
j
l
land
as
or
buildings to
Robert
Ulin
P.
a
business
enterprise.
Any
these
of
apply
in
long.
(3) Therefore, total private in-
definitions
will
he
vestment will continue to increase
be
to
fS.
addi-
factor in
plus
a
our
business outlook.
Now
turn to
let.us
of
consideration
price declines. Loans
with
invenTories, housing and new plant and
eqUipment.
importance,
in-
of
subject
the
aDDroach
i _appioacn me suoj ci
ventones^ with some^misgiving,
capital; that is to say,
because j have not the foggiest
to
inventories, plant and notion of where inventories stand
equipment. Along the way, 111 say at the moment.
Repeated attempts
a
bit
on
housing—because none tn o,.rvev businessmen on invenness
tions
nf
of
us
under
der
if
decide
can
thic
this
if
government-and
,fg
belongs
spending or
consumer
P™sram,
hnlnncrc
under
so
un-
on
our
business
in-
1956,
5o
inven-
be-and those who do
good idea are not inclined
a
disclose
capital formation
saved
investment—is
new
their
what
know
will
tories
have
them
suggest that most of
not
f°
■
In
survey Dusmesbmeri on ihvcii
7
tones
precise
it.
I
However,
am
the necessity of
being vciy
this subject, because I
ceeding all previous records, with am dealing with a small figure
a
total of $64 billion. In other and so cannot make a large error.
words, $64 billion has been ininventories are not large, at the
vested in new, permanent
struc- moment, because the steel strike
tures and equipment. It is imporacted as a crude stabilization debusiness
new
ex-
on
to
total:
and
note
Two
what
items
item
one
is
counts
this
111
(1)
Inventory change accounts
only about $3 billion out of
$64 billion.
(2) Homebuilding
$15 billion.
Investment in
accounts for
+
i
linn
new
f
for
+
accounts
Going
what
by
ment
inexu.
bil-
in
1957
really counts for 1957,
of its size and by
momentum
plant
on
This
J.I11S
IS
is
materials
I lu
the
-ii
i
skill
and
for
equip-
most
most
what
wxiai
affects
aiiecis
for durable coods
' 4.
aura Die gooas
to make them, and
canital
new
from
our
past year alone has
most $6 billion. And &t
in
is
a
we
law
as
of
been
some
in
economics
up
must
of you
that
probablv
the
on
anx-
I
come
forecast of what will
capital
your
seats,
spending
as
next
Spending
for
equipment is
"An
address
Annual
16,
by
Mr.
of
once:
and
up
Ulin
Economic
University
I
at
plant
new
going
happen
year.
will resolve these doubts
ference,
goes
come down. And so many
are
to
Fourth
applies
what
edge of
a
at-
times
physics—though
—
met
no
«nnrrnai»
in
1957.
before
I
the
Outlook
Con-
Michigan,
Nov.
1956.
average
w
or
n^rinH
for the postwar period,
laws
of
physicS)
amended,
as
this
•
rate
+J,
the
should
,
increase
-
,
early part of 1957,
mieht
slow
un
inventory,—No.
TJbe same mood prevails in lhe^
.
maae xo xms conierence
in
esch
of
1955
the
and
yesrs
I
it
difficult
to
1956
highest quarter in terms of both
sales and inventory formation. It
may
be that we are learning
something about how to control
the speed of
UP.
inventory build-
an
_
_
financing for extra
them find
tive
since,
the
counting"
Inventories
high
now,
1 Includes
chased
by
non-profit
ness
apparently
relative
plant
and
to
for
not
are
sales.
And
equipment
farmers, professional
institutions, as well
expenditures
w e
the
knows
practice
extra
this
in
gmaller
capital
as
pur-
exercise
creativity that flows from it,
-
cide
became
of
JP
dominate
to
shall
j
ownfore-
remind
great change in
formation
^ory
Is Tl!
That
my
you
inadequate statistics—
on
no
at this
policy generally at tnis
casj.—wbicb
for
cau.
business
irenerallv
^sfdYnger C
js based
.
J"000 °? neawny cau
nolicv
t^"cautTo^
™y'lose
js
.
mood of healthv
a
'
seems
jnvent0rv
stocks
car
f
t
*•
tlon
a
during
inven-
C.
term.
the
1957.
homebuilding
and
welfare
But it is not
for
industry
of
the
1957.
It cannot
the
years,
value,
building has
of
fore-
a
either
go
In postwar
residential
sharply
swung
is
econ-
nation
important in
down—very far.
up or
a
change is not possible
up
or
lenders
that
Builders
pusmuic. ouuucxs
i
J
already
u
have
been
informed
increase
no
1957; the funds
'tb
A
in
by
are
already
T
g
there will be
in
vielrJ«
tbp
com-
pxnpf>t
T
some
improvement
pIIowph
nn
yieias all°wed on govern-
•
lpnHinfr
pnpnnra«p
±
-o
mortgages.
gn
a
But
i_
will
it
suph
nn
be
too
must also face the fact that
homebuilders are selling in a
-market. The great wave of
nev! amiJy formation that sparked
P°stwar ho us i n g developments
7*s _pafs^' \ Family
"I3 ^on,,ls
®
J i°W^?r n°Y'
J1
?
,
market
be
fiL
considerably
manv
bTgger
families
house^r
they will buy
different tilings.
is ability to
^
\
ereater
would
better
but what thev would likp
what
and
politics,
economic field.*' Our economy can'
not stand still for
long; it must
expand
or
sink into depression.
Expansion requires invention and
brings social change.
Conserva¬
tives, if they want to preserve
principles, must accept and even
promote changes in outward form.
They
will
pay.
The
are
difference
And after
i
two
a
and
excursions.
attitude,
an
thaa
Conservatism
approach,
an
is
more
specific set of doctrines. Its
a
specific policies must change with
the times r— anything else would
be
ossification, not
conservatism.
COTltlTlUCd 011 JDCLCje 37
with
selective
minimum
a
about
servationism.
The
conservative,
responsible
ing
it
interests.
issues,
Conservatism,
more
defense of
the
are
what
and
take
sjtand
on
them?
doubt,
no
things to
be
to
What
conservatism
many
means
people.
many
No
individuals,'can'* speak for
single
all
is
them.
of
Dwight
The
conservatism
Eisenhower
is
of
influence
side
liberal is from want¬
not
that
of
of
flicts
As
to
likely
are
In stating
presenting only
am
but
and
—
neither
known
the
as
between right and
the moderates
between
the extremists
sions.
of
all persua¬
,
The
Goal—Growth
one
Without
Inflation
What
we
principles
specific policies, views
to grow farther apart.
either, I
be
not
are
left,
is
Burns
Byrd.
basic
extremists
to
different
Arthur
Senator
from
move
They slough off the
of
wants
party with the lunatic fringe on
top. Today, the irreconcilable con¬
from that of Herbert Hoover. The
conservatism
far
nothing done twice.- In midcentury, both sides strive for
moderation.
if
is
then,
from wanting nothing to be done
fof the first time—as far as the
convictions,
opportunism and
disturbance.
"
20th
than
of
not, if they are wise,
Conservatism is not con¬
And conservatism must flow from
that
the
are
should
economic policies
from
a
con¬
flow
„
servative attitude?
moulded, of
challenge of
They must be
the
meet
to
course,
times.
the
Perhaps
the dominant challenge to be en¬
countered by a conservative ad¬
man's view.
Conservatism's Main Features
ministration will
The main
rapid growth of the economy with¬
out
inflation.
This
goal
alone
vative
features of
attitude
discern.
a
conser¬
not
are
hard
Conservatism
takes
to
an
organic view of society, as some¬
thing
that
time
has
and
grown
cannot
uo
over
be
arbitrarily
different from a-
changed — very
set of building blocks that can be
shuffled and reassembled when¬
ever
invents
someone
model.
Conservatism
stock
in
stract
new
a
puts
more
reasoning.
experience
than
in
ab¬
It is skeptical of
solutions, preferring to go
step by step, to cross no bridges
before they have been reached,
broad
and
burn
been
after
none
have
crossed.
their
of
Western
vative
share
belief
the
in
with
the
This
central
philosophy is
commerce
core
no
But
and
his
of
conser¬
conserva¬
ative
are
They feel that the
to develop the qualities
are
more
home.
at
Isn't such emphasis bound to lead
from truly conservative pre¬
occupations, toward a paroxysm
away
of
materialism?
sense
not
to
speed
Does
it
when
up
what lies
sure
at
On second
make
we
the
are
end
of
permission
Issue
of
the
from
Yale
the
Review.
thought, conservative
concerns
like
into
background
the
fronted
with
situation.
these
these
the
The
realities
omy
the
best
growth
of
must
retreat
when
realities
most
is
con¬
of
obtrusive
Russia.
still those who
the
A
1956
chamber of
vocabulary, where stability
balance
and
that
safeguard this heritage
realistic.
Autumn
or
program.
At first blush, "growth" as a
top policy goal seems to be some¬
thing of a stranger to the conserv¬
how to
by
for broad
platform
any party
are
*Rpprinted
encourage
range of ac¬
tion that will take the measure of
lib¬
supreme
individual
monopoly.
best way
to
.
would call
tives believe that their ideas about
more
be
the road?
Conservatives
erals
they
Vear
r,_
be
change, and try to bring it about
resist it.
freedom.
is
sure
houses
of
a'tti-
instinctive
They will
mwrn
ment-insured mortgages. And this
will
one
arena
the
the year goes on, 1 expect
„
eco¬
almost
tolerant
more
shape the specific policies
advocated by conservatives, but
certainly do not commit them to
any unvarying doctrine.
This ap¬
plies with particular force to the
however, where the dust never
settles, the basic designs are less
does
extremely important in the
cast
conserv e
nomic policy
Presidential
for
now
In
t i
v a
Wallich
in action
vested
Homebuilding
omy
adopt.
have
seen
H«nry
economic
Tbe
to
We
These
are
tudes
visible than the incidental alarums
t
w??rkets
and
goods.
r e
pol¬
icies that, as a
nation, we de¬
"dis¬
of
cars
industry—in
build_up
busi-
men
a r e
warded, de¬
pends in good
part i on the
Most of
cars.
Pay result—although one. never
dangerous
build-up of inventory
during the early months of 1957.
well
.
value
do not expect a
the
work,
how
inventories less attrac¬
.
In any event I
success¬
we
and
wholesale
arrange
fore—
think
the
economic
uded"somf foreboding3 th" lafte tori a«ec,t
thfe tottal
{wsslow-up woulj^ occur® How- o^res.dent.al bu.lding for the
^ver,
fully
automobile industry, where deal-,
nc
cast—1954
-under
♦
ers have sponsored a law to protect themselves from what they,
suddenlv
+if ^^"t slow up suddenly
•
in the last part.
I believe every
forecast made to this conference
to
tions.
of course, if the rate of inven-
m
is
How
™ent^ t0 hlgher yieldlng mvest~
formation
individual
than liberals of surface imperfec¬
No Dangerous Inventory Expected
+orv
the
them,
economics.
flow of funds to this industry will
be possible during the first half of
rapidly
of
by leaving to each man
work, eight hours a day and some¬ all the responsibility he can carry.
times a little more, comes»mainly r For the sake of self-reliance and
our
in real estate, uranium stocks, oil
wells or Broadway
shows—or
even to use at the race track—but
okay
rnay apply here. What has npt
gone up cannot come down—at
least, not very hard.
^the fourth quarter has been the
ious
to
in
sharp.
not convinced that it
am
I have
sales—which is about
mnnpv
have had declines
quite
were
It
I
past,
our
that
a
now—but
But
conservatives
still
only figures we have, total busi- down only when there has been
inventories were last re- a marked change in the availPorted at about 1.6 times monthly ability of credit. For 1957, such
upward,
and
market^Mo?eover °the ?ncre™S°e
the
at
The
the demand for construction labor
and
who suggests that it is going
frantic rate. According to the
normal
Spending
Up
its
spending
is
u-i
$46
reason
of
reason
on
twn
Capital
both
nlant and
fhirHc:
two-thirds nf +hn tnfal
of the total.
nr
or
So
ing
one
campaign
heading of
is
money
pess
•
equipment
lion,
cuf off what might have
quite small,' been quite a build-up of invenlarge;
tories in 1956. Rebuilding is go-
are
very
for
CD
vice and
election
an
everybody talks politics.
a
to put
^
tant
and strong compul¬
unique opportunity
path toward uniting the country instead of dividing it,
it must develop
forward-looking policies.
widespread. And all this sobriety
Inventories in 1957
t
During
government intervention
Concludes while conservatism has
detailed
a
outlook for
the
1957, dealing in reverse order oi
^bejr
may
busi-
ahnut
year
and
special situation. But
a
Hi<5r>niirep
mv
sub-
up
The increase will continue
(2)
an
kitchen
a
be
(l) Spending will
gtantially over 1956.
And to
ment,
cent
a
•
cannot give exact figures, because
carTy inventory cost 4-5%. My
the surveys on which we rely for own survey of • this problemsuch figures are not complete. Our made among the venturesome inown preliminary survey for 1957
dividuals of the 7th Avenue garis being made right now. But I, ment district—tells me that it is
stment will make three points to empha- not a good deal at all. Five per-
some
the
not
Typ¬
1-2%
level
argument
"capital
formation" means. According to
classic
teaching, land is capital,
According t o
might have
about
enterprise system.
"
price
inflation, and the strengthening of the American
Avers the alternative to free enterprise is
socialism, but also undesirable a more centralized system
in¬
temptation to do I
general
brings social change, warns "conservatism
As challenges to conservative eco¬
policy, he lists the circumstances attending rapid growth,
conservationism."
not
the threat of
•
.
.
this is not v,ery great either.
ical forecasts call* for only
large at present, and doubts whether the neces¬
sarily larger inventory required by 1957 business growth will
become too dangerously built-up.
We
turn
managers
not
are
Conservative Economic Policy
—A Current Appraisal
But 'a dangerous
Observes invent
Mr. Ulin finds it not vital in 1957 forecast.
rising rapidly. Somewhat |
are
higher inventories will be .acces¬
sary
to support the volume of
1 business that is clearly in pros-..
that
capacity foreshadows
tories
Thursday, December 6, 1956
.
.
,•
sales
New
.
seem
the
of
There
to think
of countering
the Russian econ¬
way
is to deny that it is occurring.
more
rational
is
to
page
38
aporoach
Continued
on
Volume
184
Number 5592
.
.
.
The Commercial and Financial Chronicle
(2401)
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socony mobil
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21
22
The Commercial and Financial Chronicle
(2402)
in
Private Lending Opportunities
In Federal Housing Programs
'
Indemnity Administration
Former Deputy Administrator, Housing and Home Finance Agency
Federal
In
the
depicting
Agency's
Flood
program
on
the
Housing and Home Finance
economy, Commissioner Meistrell
VA programs.
of FHA to
of
Reveals: there would be
short period;
in
FNMA debentures enjoy
I
want
to
begin by reviewing
very briefly the structure of the
"dousing and Home
Finance
.Agency. For perspective I will go
to
sack
In
1942.
The
that
year
his
der
the housing
and commercial
properties
in
the
Governmentowned Atomic Energy Commission
Wash¬
ington, and Oak Ridge, Tennessee.
Scope and Magnitude
un¬
My
con¬
solidated
the
government's
bousing
oper¬
ations, which
bad
been
.spread
cies
over
15 agen¬
some
under
reaus,
the
Na¬
new
Meistrell
Frank
tional Housing
In
Agency.
Reorganization Plan
under
1947,
3, the Housing and Home Fi¬
nance Agency was established
to
No.
take
over,
on
permanent basis,
of
a
responsibilities
the
duties
the
and
whole,
that,
agree
the
headed
by
taken as a
is one of the
HHFA
the
and
nator
daily
our
no
term
Administrator.
Although each of
constituents
has
its
dis¬
own
of activity, all
of them
closely related to the Agency's
overall
responsibility to assist in
maintaining
a
sound
housing
economy and the improvement of
diving standards and facilities in
communities.
Under
Administration, all of
these
operating
programs
are
geared together and used in con¬
cert
through
the
coordinating
powers and policies of the HHFA
Administrator.
as
I
might do if I
were president of
insurance company,
a
a
agencies
are
the
Federal Housing Administra¬
tion, which insures private hous¬
ing loans; the Public Housing Ad¬
ministration, which
administers
Federal aid to localities for. hous¬
ing low-income families; the Fedoral National Mortgage Associa¬
tion, which helps maintain a sec¬
and
market
VA home
outlet
which
clear
for
FHA
mortgages; the Ur-
Renewal
helps
Administration,
local
slums
and
communities
eliminate
and
an
railroad,
or
poration.
report,
manufacturing
a
But
I
can
give
cor¬
you
an
idea of the size of HFIFA's opera¬
tions by citing some simple figures.
The
Federal National Mortgage
Association holds
portfolio,
a
cov¬
ering all its operations, of nearly
$2% billion worth of mortgages.
The
Federal
tration
der
on
pe¬
of homes
were
the
and
by sec¬
mortgages which
so
of the
many
homel purchases during the 1920's.
In order to stem the trend to fore¬
tablished.
surance
The FHA
has
Housing Adminis¬
just un¬
its books
on
$20 billion worth of insurance
home loans.
In
addition to the
of
new
Last
non-farm
than
more
there
Ad¬
(>70,000
year
dwelling units,
one-half
started
were
HHFA
the Veterans'
course,
ministration.
the
of
under
the
or
total,
mortgage
insurance and guarantee programs
of the FHA and the VA.
And $10
billion
third
worth,
of
under
were
the
or
either
these
billion
than
more
non-farm
$20,000
guaranteed.
of
mortgage in¬
system has facilitated the
need
for
mortgages
in
recorded
FHA-insured
Since
programs
worth
the
a
one-
1955,
VA-
or
inception
total
of
$70
of
mortgages on
homes and housing projects have
junior
financing.
Since the FHA-insured mortgages
are
amortized
long periods of
monthly pay¬
ments) they have greatly reduced
(wiih
over
level
likelihood of default. Lenders
have
been
such
loans
encouraged
to
make
not
only because they
are
insured, but also because the
FHA performs a sound borrowers
credit
underwriting job, and, al¬
though the loan amount is deter¬
mined
value
by the statutory loan-toratio, it is based on an
appraisal
of
the
long-term
prop¬
erty value.
Finally, the FHA mortgage in¬
surance
has
system
stability
feature
market.
When
FHA-insured
is,
The six constituent
consolidated
a
bank,
the present
ondary
of
past
financing
characterized
the
3jan
extension
during
mortgage
third
and
had
with
urban
credit
straight
ond
because of the many varied types
of operation, I cannot present you
our
unchecked
supplementary
the
living.
dollar denomi¬
to all the programs,
common
1,396,000
dwelling units started in 1950.
building was reduced to
Home
about 1.1 million units
lender
forecloses
property
paid
for
a
loan
to
the
built-in
a
the
housing
default
and
on
and
occurs
tenders
he
FHA
is
a
the
in
erties
within
relatively
a
short
period, FHA would not be under
pressure
to
It
supports
Korean
tions
War.
and
The
creait
removed
were
early
1953.
began
to
starts
reaching
in
regula¬
late
1952
Activity
accelerate
in
again
with
million
1.2
1954
1955.
to-value
of
1955,
however,
which
had
latter
condition
developed
part of 1953
during the
prevailed
and
througn much of 1954.
circumstances,
had
during
financed
loans
made
the
Under the
FHA-insured
VA-guaranteed
lenders
the
was
market
money
and
which
commitments
easy
sales
for
period
money
in
home
many
projects in 1955.
mid-1955, however, sharp¬
ly increased demands for invest¬
ment
funds
ing
hold
the
bentures
insurance
the
made
for
relative
a
have
buyers
in
authority
data
the
tion
on
to
and
areas
^a
new
develop
all aspects of
for
research
and
supply
housing, and
responsibility for the disposi¬
both
of
will
war
and
defense
housing and community facilities
more recently, for the sale to
and,
An address
by Commissioner Meistrell
before the New York Society of
Security
Analysts, New York, Nov. 8, 1956.
hower
done
fully
employ the re¬
of the industry, the Eisen¬
sources
remote
jninority families,
that
Administration has
so
over-all
within
always
the framework
economic
of
and
policies designed to
monetary
prevent both
VA loan guaranty
duced
ever
gage
years
more
before
inflationary
and
the
of
specific actions
restrict
home
expansion
the
most
loans
and
been available:
could
could
be made
cover
the
mort¬
for
30
entire
price of
a house, eliminating any
down-payment requirement. Un¬
this reason, in coordination der
the
ihnpetus of liberal fi¬
general
monetary
policies nancing terms, the availability of
inflation and deflation
For
with
adopted
1955,
taken
home
to
restrain
restrictive
inflation
measures
in
were
loanable
shortage
funds,
which
and
had
a
housing
developed
by the Government in the during the depression and
financing programs. Briefly, home building activity was
and
Under
the
FNMA
new
secondary
has
charter
separate
any
market
operation
accountability from
support functions. FNMA buys;
insured and guaranteed
mortgages
at
prices within
the
range
of
prices in the private secondary
mortgage market, so that it will
be in a position to resell them to-
private investors.
tions
Stock subscrip¬
required
are
of
sellers
of
mortgages to FNMA,
so
the accumulation
private capi¬
permit the
tal
and
of
of
capital
the
can
the
original Treas¬
the ownership,
secondary
be turned
that when
will
stock
market
facility
private
to the
over
stockholders.
to
of
surplus
retirement
ury
Dividends
are
paid
stpckholders, and payments in
of
taxes
made
are
to
the
Treasury out of earnings. Operat¬
ing capital is obtained by selling
FNMA
debentures
financing, all had
ing effect
exceed
in
the
private
of
retard¬
a
ac¬
any
ten
time
one
times
may
capital
and
Sale of FNMA Debentures
to
terms
homebuilding
upon
outstanding at
credit,
taken
liberal
On
Nov.
National
fered
8,
1956,
the
Federal
Mortgage Association of¬
$100
million of secondary
operations debentures toprovide for the redemption of a
market*
tivity.
Effect of Tight Money
like amount of debentures
on
Nov.
year.
The
the beginning of this year
20, 1956. This is the third issue,
inflationary pressures arising
$100 million having been sold in
from
the
homebuilding segment
February and another $100 mil¬
of
By
the
the economy had been substan¬
tially
reduced.
The
rate
of
ex¬
pansion in housing credit also had
subsided. In
lion
in
two
earlier
August of this
ceived
issues
in
the
well
were
market
fact, in order to avoid
re¬
and
are
highly regarded by commercial
in this segment
banks, savings banks, and other
the earlier hous¬
investors.
ing credit restrictions were mod¬
As you probably know, active
ified by removing the restrictions
day-to-day
markets
are
main¬
on
maximum maturities.
tained by dealers in Government
Nevertheless, the demands for and
agency issues.
This market's
credit
in
the
over-all
economy
appraisal indicates that the FNMA
continued to rise, and the result¬
debentures
compare
favorably
ing restrictive monetary and credit
with other agency obligations such
policies fell with greater effect on
as
undue
of
deflation
our
economy,
the
homebuilding than perhaps on any
other major production activity.
The
tight money
situation
has
made the 4^2%
terest
FHA and VA in¬
rate—which
the VA program
less
attractive
In
September
relieve
case
of
lenders.
of
this
acceu
of
some
the
is fixed by law—
to
Administration
in
year
the
iu.uxcr
with
the
pinch
prp^n^
loans,
most
was
where
and
severe,
for
FHA
and
VA
home
,
FNMA
This
Recent
brings
me
Changes
to
the
HHFA
constituent
Federal
which
mortgages to FNMA
from
of
3%
the
to
buys
2%, and later to 1%,
balance
of
loans
and in that
to
purchase
sold
to
FNMA;
phase of the operation
FNMA
advance
92
reduced
outstanding
mortgage
where
was
commits
buy
price
itself
mortgages
was
raised
in
the
from
to 94.
FNMA,
behind
assets
tures
FHA-insured
know, buys only
and
VA-guaranteed
war,
mortgages.
Prior to 1954, when it
ac¬
functioned
actively,
FNMA
Loan
Federal
Bank
Interme-
the
FNMA
deben¬
the portfolio of Govern¬
are
ment-insured
and
guaranteed
mortgages held under the second¬
ary
market operations of trie As¬
sociation.
The
investment
the
form
Secretary
of
the
sup¬
substantial equity
a
in
of
Secretary
purchase
the
Association
preferred stock.
also
has
to
the
right
billion
$1
in
The
to
of
the
secondary market operations
de¬
up
bentures.
National
these
banks
invest
may
debentures
the
to
without
statutory
in
regard
limitations
and
restrictions generally applicable to
investment securities.
The
direct
identification
of
the
Association with the Federal Gov¬
ernment, as well as the virtually
risk-proof character of its assets,,
provides the basis for the high
credit
rating
ciation's
separate
has
Under
given
tne
to
Asso¬
obligations.
Under
FNMA
two
special
a
accountability
other
functions.
assistance
func¬
tion it buys mortgages for special
such
programs,
ing
and
using
urban
as
military hous¬
renewal
housing,
Government
funds
in
authorized by the Con¬
Under its management and
amounts
gress.
liquidation
trustee
for
function
the
it
acts
Treasury
in
uidating the old portfolio of
$2.5
billion
worth
latter
some
of
the
as
liq¬
mortgages
bought by FNMA at par. In con¬
nection
FNMA
as you
Home
the
oiate Credit Bank debentures. The
by actions to assist the secondary
market
and
Treasury has
t^e
FHA-insured
Federal
notes
to
the
liberal terms than had
was
Housing Act of
passed by,the Congress.
surplus.
de¬ National Mortgage Association, the
intro¬
FNMA
the
not
the
program
1954
recharter
in
ment, plus the policies adopted by
properties could be disposed of FHA and VA mortgages when pri¬
prevent the spread of urban blight; been insured
by FHA ($33 billion)
vate secondary markets are tight.
the Community Facilities Admin¬
gradually
during
periods
of
a
or guaranteed by VA
($37 billion)> stable
As part of its steps in September
housing market.
istration, which aids communities
Since it
exerts such
a
major
to alleviate the tightness of funds
to provide public works and
makes
Home Building Trend
influence upon the economically
in the housing segment, adminis¬
loans to
colleges to meet their
The innovation of the FHA did trative actions were taken
strategic home building and home
through
expanding housing needs; and the
financing industries, the Govern¬ not immediately lead to a housing this agency to make more financ¬
new Federal Flood
Indemnity Ad¬ ment
must
administer
its
pro¬ recovery, and over the interven¬ ing available.
In order to supple¬
ministration, recently established
grams in these areas with an eye ing years there have been succes¬ ment the supply of
to insure properties
private funds
against flood
to
maintaining stable econo'pic sive liberalizations of the loan for insured and guaranteed mort¬
loss.
In
addition, the Adminis¬
growth. While seeking to encour¬ terms permitted on FHA-insured gage loans, the FNMA stock sub¬
trator has various other
responsi¬
age a high rate of home building loans.
After World War II
the scription
required
of sellers of
bilities, including a system of vol¬
untary mortgage credit for home
to
the Federal Reserve Board to curb
and
run,
various
market. The amount of debentures
contracts.
term
to
of
looking toward the
scarcity of money and led to ris¬
ing interest rates.
This develop¬
properties dur¬
20-year
lation
proposed
lieu
After
Ad¬
reducing
private ownership of the
secondary market facility, legis¬
the
in 1955 was due in part to
provisions of the Housing Act of
1954, which permitted higher loan-
easy
programs, and
of
eventual
that
and 1.3 million in
year
dispose of the homes
loans.
claims under
mortgage
could
part of the
as
policy
to obtain cash to pay
its
Some two years
par.
however,
ago,
Government
a
large number of foreclosed prop¬
ing them at
ing the next three years under the
impact of credit regulations im¬
posed
with
the
advent
of
the
year
cash, but in debentures
home
financing
by
permitting
guaranteed by the Treasury which
minimum
uowii
pay^.txito
oo
have a maturity of 20 years.
Thus,
lower-priced
housing
financed
if the FHA should be
tendered
ported the market for insured and
guaranteed mortgages by purchas¬
ministration
the
not
Thursday, December 6, 1956
.
.
dur¬
a
ing
FHA
and
of
homes
with
low
important arms of purchase
Government in terms of our down-payments, thereby obviating
economy
of
The high volume of home build¬
running at over 200,000 a year in
the early 1930's, this volume was
in part "the result of the short-
coordinated
through the overall policies and
supervision of the Office of the
whose operations are
are
com¬
to year until
year
the record
tion
time
tinct field
for
Banks
from
reached
ratios and a longer ma¬
turity on FHA-insured loans. The
principal factor making for toe
high level of residential construc¬
Cole,
consists of six constituent agencies
M.
Albert
/Administrator
the
Loan
mortgage loan
new
vital and
most
Since there is
HHFA,
the
Home
from
borrow
in
purpose
will
you
war-born agency.
Today
could
aggregate
—
bu¬
and
the
were
savings
closures, the Home Owners' Loan
providing this
Corporation was established in the
review is also in part to remind
early 1930's to permit home own¬
you of the scope and magnitude
ers
to refinance on terms which
of the Housing and Home Finance
they could carry—and also to take
Agency and the impact of the over
many
properties and hold
various programs on the national
them off the market.
The HOLC
economy. Many of you, no doubt,
made
over
a
million
mortgage
like
many
others may have at loans and
acquired nearly 200,000
best
only a vague idea of the homes
and, incidentally, after
HHFA since your own interests
about
20
years
of
liquidation,
and
dealings have been largely ended
up in the black.
concerned with only certain parts
In the mid-1930's, the Federal
of its functions, such as the FHA,
es¬
the PHA, or the URA. But I think Housing Administration was
war
powers,
in
When foreclosures
President
Hoosevelt,
they
of their
it
marginal credit underwriting, and
of
Richland,
the
addition,
celerated
new
subsequent foreclosures and losses.
local residents and private owners
of
below
In
riods of thriving prosperity, as in
the 1920's, led to inflated prices,
a
this insurance operation.
communities
accounts
mortgage
Community Facilities Administration sets
by the market place; and that the new Flood
program's experimental aim is to have private
over
maturi¬
guaranteed
reduced
10%
the
above
and
and
Foreclosures
rate
Indemnity
industry subsequently take
loans
mitments.
high credit rating;
interest
1955
maximum.
restricted to
part
on
FHA-in¬
savings and loan associations
started under FHA-
no pressures
in
were
statutory
down-pay¬
for
minimum,
insured
making
dispose of houses for cash in event of large number
foreclosures
for
Federal
FNMA holds nearly $2% billion in mortgages;
FHA insures almost $20 billion home loans; and more than
one-half of non-farm homes last year were
ties
field,
VA-guaranteed
raised
were
statutory
amount
points out:
<
and
share
of
impact
housing
requirements
sured
loans
By FRANK S. MEISTRELL*
Commissioner,
the
ment
.
cured
with
has
by
issued
function
debentures
se¬
the
portfolio
in
the
amount of $570 million in the pri-
Continued
on
page
40
Volume
184
Number 5592
...
The Commercial and Financial Chronicle
(2403)
Royal McBee
unlocks
the;
■
handcuffs
■'
:
'
of
'
BUSINESS
COMMUNICATIONS
Management couldn't start
a
production line
rolling; Sales couldn't write
firm one, or
an
order,
con¬
relay it to Production without
Communications.
Hastening the word of business is Royal
McBee's
prime
concern.
Royal manufactures
typewriters than
in
the world.
That's
more
any
other
It's the
why
and better
company
reason
McBee
continues to create the business forms and
business methods
which spark economies in
com¬
panies of all sizes—large and small, in this country
and
And it's why now Royal McBee is on
overseas.
the threshold
of
tronic-solutions
applying
to
many
new
and startling elec¬
of today's problems in
data-processing.
It's
always advantageous to remember that when
the
speed of
has
a
a
word
means
fast and economic
SUMMARY
Three Months Ended October 31st
business, Royal McBee
answer.
OF
RESULTS
1956
1955
Income from Sales of Products,
Services, etc.
I26'174'080
Federal
on
Income
Taxes
1,565,360
$ 1,567,337
on
Income
Net Profit after
$ 3,132,697
$ 1,605,136
for
$ 3,298,149
Depreciation but
before Federal Taxes
Provision
$22,782,404
1,693,013
Net Profit after
Depreciation and
Provision for Federal Taxes
on
Income
*Earned per Share—Common
Stock
*Computed
on
$ .96**
1,535,074 shares currently outstanding.
**Includes non-recurring income equal to 14$: per common share
resulting
from an award in litigation.
(Subject
ROYAL
M9BEE
Westchester
/<j> year-end adjustments and audit)
CORPORATION
Avenue, Port Chester, New
York
23
24
The Commercial and Financial Chronicle
(2404)
Continued
Boston Inv. Club
To Hear Fisher
The Sale 111 Never Forget
BOSTON, Mass.—John B. Fisher,
Administrative
By ANDREW L. CIIILDS
Senator
City
on
sounding like a theft from the
Alger, Jr., this tale is true.
of Horatio
pages
1919, when callow in the ways of life
Street, I had managed to complete my* new
employer's investment training - course
with
marks
considerably lower than
Wall
Summa Cum Laude.
launched
was
of
seas
bond
a
of which
selling
Railroad.
they
ate
Amphibious
South
Pacific
II.
unknown, but suspect.
With
of
doctorate in finance and
L..
A.
profit motive had
Then
one
simply,
behind
now
the
„
plants and
the
gift to Paterson found
more
in
office
our
"Please
than
modicum
a
calls
more
were
lenses, although the
been put aside.
have
your
49
at
one-cent
a
Mr.
Wall
postal card
Street.
Childs
It
read
when
call
-con¬
venient."
Arriving at the plant as if by jet plane I was
met by my friend who
spoke to me unbelievably as fol¬
lows:
"Our policy has
changed. We have recently liqui¬
dated about
in
behind-the-
a
entitled:
Concept of
the
"The
Eisenhower
$1,200,000 of real estate and wish
to invest it
good grade bonds.
We have looked into your house and
since
you are the only salesman who has been here in over
a
year we sent for you."
,
J...
pundits at the office did the selecting, of course.
The
sales-manager was flabbergasted. The partners were
incredulous but pleased and I
began to think of Paterson,
N. J., the
way people now think of Fort Knox.
1, 1981.
offering of
Service
made
common
share.
per
Burroughs
tures,
$100
for
held.
Electric
&
yesterday
nationwide
Gas
Co.
(Dec. 5);
underwriting
was
Dec.
17,
been'
the
.20
deben¬
basis
of
of
deben¬
shares of stock
offer
will
The
expire
on
offering has
by a
group
underwritten
Sinking fund
issue
stipulate
may
provisions
optionally
the
retire
company
to
$1,debentures annually dur¬
200,000
ing the
During
the
it
years
is
$1,200,000
required
annually
option,
up
1961-1965, inclusive.
1966-1980, in¬
years
clusive,
its
that
the
of
retire
and
to
up
retire
to
may,
at
addi¬
an
by
a
by Merrill Lynch, Pierce,
Fenner & Beane at $31,125 a share.
000
on
past
Nov.
incurred
29,
for
year
the
during
purpose
of
and
constructing addi¬
manufacturing plants, ma¬
chinery and equipment, for mod¬
ernization
for
Net proceeds from
together
with
from
sale
the
$50,000,000
the
offering,
proceeds
received
Nov. 21, 1956 of
and refunding
on
first
mortgage bonds due 1986, will be
added
to
general
funds of Public
Service and used for
general cor¬
porate purposes.
Such purposes
include the prepayment of
bank
loans
the
and
the payment of
part of
cost of the
company's current
construction
program.
The bank
in 1956, were used
loans, incurred
for general
corporate purposes in¬
cluding payment for a portion of
the construction costs.
Estimated
construction
cost
of
the
program
current
of
as
Aug.
31,
1956,
was
$226,000,000,
largest items of which are
construction
of
two
generating stations.
new
the
the
electric
Of the $226.-
000,000, approximately $42,200,000
has
been
the
last
or
four
will
be
months
exDended
of
1956
sale
of
existing facilities,
working capital
resulting from the
current
balance of the proceeds from
of
the
debentures
will
be
079,814.
is currently pay¬
ing common dividends at the rate
a
in
and
Public
share quarterly, equal
year.
Electric
in
the
12
months ended Aug. 31, 1956 were
$292,788,691 and net income appli¬
cable1 to
the
stock
common
$23,572,250, equal to $2.38
on
the average number of
shares
on
which
a
was
share
common
dividends
were
paid during the period. :
Joseph
Galdi
C.
of
a
similar
least
at
of
Street,
dium
will
$18,000,000 by
models
of
including
sized
business
small
electronic
ma¬
and
total.
has
President
Corporation.
data
proc¬
line
of
business
forms.
In
addi¬
tion, the company has become a
supplier of military goods with
special
emphasis
on
electronic
and
computers
control
apparatus
(3)
become
an-
Smith, Moore
of
ST.
LOUIS,
Mo.
Edson
Smith, Moore & Co., 509 Olive St.
lumbers
Midwest
States
name
has
Treat
&
Nov. 30,
been
Co.
1956.
changed
Inc.,
the
to
effective
firm
Amos
as
of
rate
to
be
6.8
don't
I
think
volume of sales.
a
the
for
allowance
Even
fact
that
with tighter credit some
be made
heavier trade-in allowances)
with
and
for
than
cash,
cutting
between
strikes
What
much
this
does
more
probable.
imply in terms
outstanding credit?
has
what
million units
6.7
and
as
changes in
From
That
1956
promises
unit,
not
that
is
its
likely
1955
say,
to
of
the
duration
average
be
to
of
much
the
same<
"
r,or.QV/mo„+£!
„
extensions, ior two reasons.
the rising trend in sales, not tem¬
by a
period; "and
m€nts
shortening of
the "runoff of
Evi3ently
tion
of
this
forces
automatically
of
rates
payoff
re-pay-
1955 sales
on
mere
at
enumera_
work
doesn't
any
specific-
yield
increase
in
instalment
credit
outstanding.
As a rough
judgment, however, I don't think
far
go
billion
and
estimates
total
*
$1.70
of
billion.
(These
consistent
6 5
million
million. Of course,
combinations
place the
$1.25
between
seem
sales
to
wrong
somewhere
been
said, it will
iation to
there
6.7
other
are
the
of
with
and
variables
the spread
in number of
fGr the reason that the higher
carSj
the sales, the greater the percentage
sold
thereof that
on credit.
be clear that my
implies
from
diverting
more which would yield the same net
goods rather results.) The spread is larger than
sales, something might appear at first sight, in re-
car
6.5
me
much
other
from
money
of
sales will
smaller margins
on
is
weighted
loans
average
per
repayment
differ
and
the
extended
Gf
we'd
estimate already
on this vanthe question
figure but merely
will
Consumer
have
to
be
Goods
judgment
a
of
the
of
the
Stock
—
N^w
York
Exchanges.
pattern
past
reflect
the
and
Securities
Commercial
National
its
of
Change in
Exten-.ion
Repaym't Outstdgs.
(Millicas of Dollars)
Third
1954...
First quarter 1955....
Second quarter 1955..
Third quarter 1955
Fourth quarter 1955...
-irst quarter 1956..;.
Second quarter 1956..
Third quarter 1956
quarter
The
mass
lows:
a
+
of
34
+
274
+
960
+1,165
754
577
+
+
135
86
+
+
fol-
as
expansion
in
risen rapidly
feverish annual rate of almost
$4.7 billion in third quarter 1955,
underwent
sharp although
a
pro-
smaller decline during
gressively
the next year and is now probably
that
to
prevailing
of 1954.
been
the
in
(The whole cycle
compounded
Par^d 195f> t0 date andJee.1 that
*n,1957
din.^f.mlgJ18®™
between $650 million and $750
million.,! believe that the judgments underlying these figures are
subject to a considerably larger
degree of error than those I gave
for autos, but for my purposes this
1S n°f so serious since substantial
departures of experience from ex¬
pectations
would
nificantly
the
not affect sig¬
over-all trend in
total instalment credit outstanding.
880
+
effect is about
credit, after having
to
of
sharp
Repair and Modernization Loans
In this
Corporation,
Bldg.
experience
in
seasonally
On
ings.
whether
the
trend
of
rate
in
reversed
,,
.
growth
,
to
shortly, leading to
a
be
total
which
that
the
(1)
Although
cash
ance
or
have
action
such
wanted)
a
will be sold
on
cash plus trade-in allow-
basis
in
1957—first
year
of
past
banks
are
I doubt
going to
so
would
as
lead
governmental
(un-
to
measures
And
0ther
on
hand, given that the
maintained, I don't be-
trend
is
iieve
the
give
a
aulhorities
would
seek
shot-in-the-arm to the
of
lending
within
the
framework of a tight ovei-all pol-
We shan't go far wrong, I
SUSpect? to place the changes in
icy.
somewhere
1957
million and
between
$150
$175 million.
What all the foregoing comes to
is
a
guess
or so,
somewhat larger
cars
hand,
designed to lower the dikes.
taken
expectations:
following
proportion of
a
will
This opinion rests
year.
good
outstand¬
one
borrowers
category
steady growth in
,
,
the
tightly to poto
prevent
any
rjse jn outstandings, especjaqy jn view of the danger that
terRiai
I expect this down-
.
adjusted
the
appiy the screws
on
,
of
half-year—a fairly steady growth
repavments.)
A
see no
expect sharp departure
the
from
again, I
area
to
reason
to
George
Bank
3,767
3,714
rate
The
89
$2,932
2,955
3,003
3,032
3,215
3,352
3,485
3,559
3,612
3,628
1954.. $2,843
2,989
3,277
3,912
4,175
4,517
4,239
1,136
quarter
quarter 1954....
Fourth
increase in 1957 appreciably larger
,
Young has jointed the staff of
Interstate
revision
recent
totals.)
on
—
of
quarters
ten
place this
CHARLOTTE, N. C.
W.
answer
change during
since this
gives one some impression of the
effect on repayments implicit in
past extensions. Here are the relevant data on a seasonally adjusted
basis.
(The figures are those just
made available by the FRB and
the
(Special to The Financial Chronicle)
Securities
Inc., 79 Wall Street,
City,
announces
that
might
units.
fact,
Wi*h Interstate Sees.
Dealers,
New York
1957
between
somewhere
port such
but requirements
downpayments seem
whatever
total
than
Now Amos Treat Co.
All
(3)
amount
that
after
total,
pr0bable and will work the other
superimposed
B.
associate member
clearing through H. Hentz & Co.
the
higher
changes in the rate of extensions
(Special to The Financial Chronicle)
76
Exchange,
raise
for
credit will be easy enough to sup-
has
With
Cooke has become connected with
Stock
far short
specifically, if
sales
car
In
should rise
but
only
Higher prices plus higher
charges would tend to
pered
freely available,
million
close
kinds.
York City,
corporation
the
of the American
were
T e^x pa n si oil 'of
pi
a
of
summer
thereafter
More
were
7
occur,
per car sold
credit
on
interest
wouldn't fall
we
pushed
and
me¬
essing systems, a line of office
supplies and accessories, and a
Membership
New
that
announces
model
nature
expects
1957.
of various
Galdi,
Securities
Beaver
the
Nevertheless, I suspect that
summer
Galdi Acquires
f th e°r
capital
Burroughs Corp. and its subsid¬
iaries are engaged in the produce
tion, distribution and servicing of
chines,
of
revenues
additional
company
to
end
many
;
operating
Service
the
in
policy
domestic
Second
the
amount
.......
company
for,
expenditures
the
Total
if
even
as
able; hence to
which
to $1.80
rela-
a
under the postulated credit condi-
credit
Credit extended
F<>r other consumer goods sold
$1,200,000 annually.
Of the net proceeds from the is not to derive a
on credit, I look for at least mainsale of the debentures,
Burroughs to spell out some of the considera- tenance and more probably modplans to apply $12,000,000 to the tions underlying the projection of era^e stepup in the almost c°n~
partial retirement of short-term demand itself. In doing so, it is stant rate of growth in seasonally
bank loans, amounting to
$29,000,- best to begin with presentation adjusted outstandings which has
tional
tional
eight months of
to $77,859,003 and
amounted
group
headed
1957
and
the
headed by Lehman Brothers.
acquiring
first
a
1955 and
of
1956, I doubt
could repeat the 1955
we
sales
(2)
(2)
way.
in
tions,
have
the
for
on
1956.
.
available
of 45 cents
ap-
good year in
whether
in credit sales will
crease
still subject to
we are
the frontwash
tively
the familiar 2-year cycle—than in
1956, a significant absolute in-
of slightly.
■
the
has
Since
(1)
of this
stock
common
amount
each
The
during the period Jan. 1, 1951 to
Aug. 31, 1956 they totaled $466,-
stock of Public
and
follows:
as
con¬
Under the offer
100%,
principal
tures
The
The
smallness
new
perience
pur¬
debentures
stockholders
at
during the
1,^00,000
car
credit whir-h tnnk place in t.he pnwhich took nip™* in the en¬
growth of the company's business.
shares of
relative
1954
The debentures
convertible into
$40
requirements
Public
used
suing nine to 12 months.
4Vz %
Developments
several
on
of
models that 1955 exled us to expect,
hopefully, to name some—is about
peal of
warranted
rights to
of
subordinated
Dec.
are
at
30
$30,154,700
vertible
due
Nov.
on
chase
about $81,700,000 will be expended
in 1957.
Gross property additions
Electric & Gas Stock
variables
of
but
strength
inventories
car
high
The Burroughs Corp. is offering
its
common
stockholders
of
and
1956
sorts
above
the
used
record
By Lehman Group
the
The
Merrill Lynch Group
Offers Public Service
the
on
mentioned
others—the
sales,
projection,
any
judgment, predicated not
own
r-f&nit
.
thick
day in May, 1920,
received
was
be
industry.
from
guesswork
My
tnnus
economics from
During that Winter several
man
will
right to subscribe
But Wall Street's latest
the
England
Burroughs Debenture
some
deep waters of this interview
on
the
War
Offer Underwritten
He
promptly explained that the company * never
bought securities, believing more in New Jersey real es¬
made
in
World
-
could open with credit conditions
as
generally favorable
to
many calls were made through the
slush of a hard Winter.. Among prospects
of education.
was
~
year
University of Leipzig.
in the
Force
discussion
record
tate values.
a
Administration."
a
a
Kappa,
during
New
talk
Team
large silk manufacturing company situated
about a quarter of a mile
beyond the end of the trolley
line. The
middle-aged, bespectacled Treasurer sat in his
shirt sleeves behind a
high bookkeeper's desk reflecting
all
and
Recently, he organized Joyce
blizzards and
at
Beta
Fleet
to
not
Phi
College
Lieutenant USNR with the Third
scenes
misgivings
permission to also call on
In this Elysian bower of brick
was
of
laude gradu¬
cum
Thursday, December 6, 1956
.
.
For Anto and Other Loans
only
a
Harvard
member
a
smoking chimneys
visited
Club.
Fisher,
of
His
the tenure
career,
gave me
the'banks.
Yacht
ests
My superiors had cautiously selected a
sphere of operations which widely detoured
the
sophisticated metropolitan
area and
placed me in the thriving manu¬
facturing City of Paterson, N. J., on the
Erie
Meeting
Fisher Associates of Washing¬
ton, D. C. to represent the inter¬
no ceremony,
the experimental
upon
then
was
Annual
&
Immediately, and with
I
Club's
11
page
Instalment Credit
S.
Thursday, Dec- 13 at the Bos¬
ton
Mr.
In the Fall of
and
U.
Leverett
vestment
While
to
Saltonstall, will
be the speaker at the Boston In¬
Vice-President, A. W. Benkert & Co., Inc.,
New York
Assistant
from
.
personal
where
that over the next year
instalment credit other than
will
loans
between
rise
some-
$2.05 billion
and
$2.63 billion as against a (season-
ally adjusted)
annual rate of in-
Volume
of
crease
the first
5592
three quarters of
concluding
in
1956.
-;
-
.
credit extended to
purchase of
that
cover
durables.as¬
consumer
two things: (1)
of Regulation W
implicitly
sumes
variant
a
will not be imposed; and (2) that
producers of such items will not
attempt successfully to engineer
breakthrough
the
expansion
I believe
forcing
greater
money
supply.
to
the
in
a
credit,
permit
on
authorities
write off the first
we can
possibility for 1957.; If, however,
as
the year unfolds the share of
additional
credit
to instalment
to
be
the
sales
available
should
than
and
can
Telephone & Telegraph
organization.
These
Co.,
parent
Stanley & Co.
and 47
associated underwriters yesterday
vances
ad¬
used, among other
for extensions, additions
(Dec. 5) offered for public sale a. and improvements to the com¬
new issue of $30,000;000 Michigan
pany's telephone plant. The com-,
Bell Telephone Co. 35-year 4%%
pany Spent a total of $276,202,600
debentures, due Dec. 1, 1991, at for new construction during the
102.266% and accrued interest to 5V2 years ended June
30, 1956.
yield approximately 4.25% to ma¬
Operating in Michigan, the com¬
turity. The issue was awarded to
pany at June 30, 1956 had 2,475,the group at competitive sale on
312 telephones in service of which
Dec. 4 on its bid of
named
The
106.766
101.565 which
about
will
be
were
54%
were
Detroit
in
and
callable
at
population of 50,000
or more.
Harrison
the six months ended June 30,1959
total
operating
revenues
were
$123,237,280 and total income be¬
—
of
fa
running
of
the
New
York
Westhermer Adds to Staff'
CINCINNATI, Ohio
Jeanne
Westheimer
Charles N.
Covey has become connected with
Atkinson and Company, U. S. Na¬
tional Bank Building.
Walnut
New
is
Husman
R.
and
York
brought
producers
by
would
that
and
Cincinnati
Exchanges.
fore¬
yield
and
haps
below
range,
my
credit
loans has
ex-personal
chance of being close
a
—though in the second
activity
total
case
would
what above my
of
per¬
estimate of expansion in
my
instalment
dollar
in¬
So with bars b.th
greatly.
above
the
would
thereto
crease
and
run
some¬
projection because
being souped up somewhat by
inflation.
Natl. Gash
Register
Offer Underwritten
The National Cash Register Co.
is
offering
standing
tion
to holders of
its
out¬
stock subscrip¬
common
rights to subscribe for $28,convertible sub¬
170,500 of 41/2%
ordinated debentures, due Dec. 15,
1981,
shares
m
the basis of $100 principal
on
of debentures for each 25-
amount
of
record Dec. 4,
held
stock
common
of
The subscrip¬
Subscription
warrants expire at 3:30 p.m. (EST)
tion
price
Dec.
on
is
19,
1956.
100%.
Dillon, Read &
1956.
Co. Inc. heads
an
investment bank¬
ing group which
underwriting
is
How your
the offering.
words might be
The offering represents the first
public financing by The National
Cash
Register Co. in 30 years.
Proceeds from
will
bentures
for
compressed into "shorthand'' sound
the sale of the de¬
be
used
primarily
for
waves
telephone transmission
working capital.
The
debentures
convertible
are
into
common stock at $54 per share
through Dec. 15,1966 and at higher
YOUR EAR IS OUR CUSTOMER.
prices thereafter to maturity. An
sinking fund, commencing
1967, will retire approximately
40% of the issue prior to matu¬
rity.
The company mav retire
annual
Homer W.
in
through the sinking fund
ad¬
an
ditional amount of debentures not
hand" method of
Any time
to
can
we
speed
your
voice from telephone
telephone with less equipment you're bound to benefit.
exceeding the amount required to
be
retired
each
in
sinking fund at 100%
deemable at the
pany
to
are
possible
way to
method which Bell
a new
100%
including D°c. 14, 1961
on
The
to
Actually, it's
and after Dec. 15,
ofT
possible is
by
our
job.
are
a
method by which samples
are
snipped
receiver that rebuilds the original
sound.
registers, accounting and book¬
keeping machines, adding ma¬
chines and supplies fo** these ma¬
chines.
These' products are dis¬
tributed
serviced
and
through their
States
in
and
in
the
net
and
come of the company
oth^r
and
net
$12,661,000.
This
compares
and
$213 985.000
$9,747,000
ottmr
and
for
net
the
even
charts
with
a
Our scientists
95
in¬
idea, which could
more
sent
amounted to
$241,126,000
salps
two
the
on
right show how this
be
short sound like ^or."
income
to
be
economical
are
mean
use
not
only improved service hut
of lines
as
well.
by fewer electrical signals. And
sent over
of
income
of
period
It's
(8pecial to The ITinancial Chronicle)
more
MILWAUKEE, Wis.
McKinnon,
now
622
—
Herman
with Thomson fa
North
Water
St.
word is
to
recognize the particular sound.
a
1
voices could
Jj, T
each wire.
If
-
i
i
n
,1
J\f
''if
exploring and developing like this that make
telephone service the bargain it is.
THIS IS ELECTRONIC SHORTHAND OF THE SOUND "OR."
"pitch period" in three (as against all nine shown
in upper
chart) has been selected for transmission. With
Working together to bring people together
this system,
three times
SYSTEM
cally travel
over
'
A. Uihlein is
a
Electronic machines don't really need all these
Voices could he
One
Thomson, McKinnon
Vibrations
putting further research into this
with
income
same
originate in puffs of air from,the larynx when
spoken.
1955.
Joins
can
records vibrations of the sound "or."
vibrations
serv¬
anoroximatelv
sales
The
done
Chart shows how the oscillo¬
THIS IS "THE SOUND "OR."
scope
United
For the nine months endod S°nt.
1956.
a
principally
sales am'
own
organizations
countries throughout the world.
of
as
speech sound—just enough to identify it—and sent
a
by telephone to
rmt
quickly and efficiently
in the produc¬
engaged
are
its
and
company
1977.
subsidi¬
business machines, including cash
30,
as
over
to ear
exploring. You might call it ''electronic shorthand."
tion, distribution and servicing of
ice
telephone
patterns
wave
would ordinarily hear them
telephone. To get these sounds from mouth
transmission
Telephone Laboratories scientists
re¬
com¬
do this is by
sending speech, studies
as you
at prices ranging from 105%
and
aries
and
option of the
the
by sounds
fundamental
One
The de¬
year.
bentures will be redeemed for the
made
Bell Laboratories scientist
Dudley, who originated the "electronic short¬
BELL
TELEPHONE
the
as
same
many
voices could theoreti¬
pair of wires and he rebuilt
into the total original sounds.
Mrs.
with
Company,
authorities'
the
—
now
members
Street,
cast, both the strength of pressure
likelihood
Cin¬
and
cinnati Stock Exchanges.
signifi¬
cantly below the rate 1 have
to the
Company,
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
PORTLAND, Ore.
For
John B.
staff
Exchanges.
With Atkinson & Co.
vicinity and around 24% in
other
Michigan cities having a
and including
Stock
—
has been added
bers
Ohio—James H.
Moore - is
with
Ball, Burge
&
Kraus, Union Commerce Build¬
ing, members of the New York
CLEVELAND,
Midwest
CINCINNATI, Ohio
Morlidge
Fifth Third Bank Building, mem¬
Joins Ball, Burge
(Special to The Financial Chronicle)
and
Harrison Co. Adds
(Special to-THE Financial Chronicle)
,
the
Nov. 30,
1957, and thereafter at prices de¬
creasing to the principal amount
on and after Dec. 1, 1986.
to
was $14,with $110,173,378 and $14,400,378, respectively,
in the same period of 1955.. Total
1955 revenues were $229,327,181
and total income $29,577,820.
.
25.
compared
purposes,
the 4%% coupon.
bonds
income deductions
4t8,574
payment of advances from Ameri¬
Offers Mich. Bell Bds.
Morgan
fore
auto
assumes
be
prove
smaller
deal
good
a
made
buyers should
projection
The company, will apply
the
proceeds from the sale toward re¬
Morgan Stanley Group
comment:
Everything I have said about the
trend in
(2405)
The Commercial and Financial Chronicle
»
.
billion
SI.67
around
.
Concluding:.Comment
-
One
•
Number
184
of
322
the
Stock
The Commercial and Financial Chronicle
26
Continued from page
Week
This
First National
—
National
Trust
City
Federal
Reserve
bank
holding
a
the
of
Bank
Board
County
in
Perhaps
set
up
under
Company
has
heat
the
to
company
Holding
1956 much
erated
be
and
Bank
Company that they had apfor the permission of the
plied
been
Act
gen¬
public prints.
few
a
comments
may
made, it is hoped with objec-
There is the argument advanced
the holding company plan is
that
to circumvent New York
means
State law.
plan
Just how
state
chartered
necessity
state
have
charter
under
one
Act.
If the
bank, would
to
and
the
of
relinquish
take
out
a
its
new
National
Banking
juris¬
national banks any¬
As the states
diction
it?
is
to go through, County,
were
over
have
no
how, just how would the circum¬
venting take place. It is true that
bank would have given
up its
one
state
charter, but of
there
course
plenty of state-chartered banks
are
around.
The
of
New
York
said
that
is
it
Suoerintendent
reported
to
have
how
see
this
for
have
would
result.
generations
dual system.
built
We
up
a
Many national banks
operate
alongside
many
state
banks. Many of the states
permit
the
formation
of
bank
holding
companies.
New York State itself
countenances
which
has
been
with
company
neighbors for
It
has
of
one
in
the
operation
national
as
of years.
been
charged that the
national holding
company act
new
will
spark a movement of state
chartered banks to take out na¬
tional charters. Might it not
ly
restore
the
balance
that
state-chartered
been
a
when
In
the
city
trend toward state charters
shifts were made.
Within
the past three
►
has in
with no complaint.
Organization of holding
years
them
to
merging with
(Bankers-Public;
Manhattan-Chase;
National
City-
•
investment
13th
charter;
12
with
business,
state
with
crowding $200 million in
The
seem
of
York
State
Banks
is
if
Therefore,
stock
taken
is
over
the
company
bank
surrendered
be
the
holding
and
As
on
It
ing
opposition
to
By
Teletype—NY
I
1-1248-49
Manager Trading Dept.)
Specialists in Bank Stocks
A. Gibbs,
of example let me point
way
agriculture and shipping.
Both
by
legislation
and
by
treaty, special tariffs, quotas and
tariff quotas are permitted in the
field of agriculture.
\.
sufficient
its
make
fairs,
trade
missions
has
joined
Ladet
Co.,
Building.
the
First
He
was
staff
of
National
formerly
with Birkenmayer & Co.
ler has been added to the staff of
South
La
the
Salle
We have developed
New
York
and
Midwest
(Special to The Financial Chronicle)
CHICAGO, 111. —Sheldon M.
Gordon has become affiliated with
&
Street,
Salle
Renshaw,
York
209
South
members of
Midwest
and
the
Stock
program.
also
for
S.
vessel
that of
same
a
it does
averages—as
between
—
four
five
and
times
foreign vessel plying the
In
route.
Government
instance
this
the
the
reimburses
operator
for
the
full
Of
Joins Dean Witter
is
now
with
Georee R. F'Md
Dean
Witter
&
Co.,
105 South La Salle Street.
BANK
'course,
this 'procedure
INDIA, LIMITED
Bankers
to
Kenya
Head
the
Government
American
Colony and
Office:
26
E.
manufacturers.
and
Paid-Up
Reserve
Capital
Capital
Fund
The Bank conducts
banking
and
business
the
'
that
and
the
would
Govern¬
the work
we
doing in market research and
trade
in
promotion.
;
wisely and effectively in developworld
trade by maintaining
best
the
possible representation
by keeping the Gov¬
and
abroad
ernment informed of its activities.
Where
elements of
an
my
there
analogy here.
Commerce Department Trade
its
of
in
is
to
activities, the Government
better position to point out
a
industry its opportunities.
Views
President's
business.'
undertaken
-
Before
problems,
solve, let
future,
I
describe
which
me
based
trade and the
we
briefly
on
trade
On
our
to
discuss the
desire
for
responsibility of the
country?
Face
stand
we
the
the
free
Reciprocal
procedures.
Severe
today
on'
nations?
We-
anniversary of
Trade
Agreement;
Consider
for
a
mo-J
year
Commission,
the
Presi¬
country ..in the free world,
nomic strength is dependent
eco¬
must
trade.
.
.
Nations
,
buy from other nations, and
to pay for
what they
order
in the consideration of
legislation—HR-1—the Presi¬
Later,
dent
wrote
MaHin
Minority
used
and
Leader
these
words:
This program,
and
therefore, must be
be, administered to the
will
benefit
the
of
Nation's
economic
Korean
general problem may
lead
seem
to
to
contrary objectives, but I
think not, provided only that the
and the protectionist
willingness to give and
take and to jointly work toward
the goal
of increased trade be¬
indicate
a
this
tween
nation
the
and
Free
have
said
be
must
it
Foreign
that
will
succeed
good
basis.
we
buy
they
when
best
is
sound
whom
Those abroad from
this
in-,
of
for several
now
trade
for
the
peace
first
time
in
the
whole 20-year period.
This
trade
normal
development
of
Reciprocal Trade'
under the
Agreement
is bringing
competition in cer¬
program
severe
industries.
of
the
of
some
illustrate
the
faced
by
manufacturers, let
attention some
our
bring to
To
problems
your
examples of what has
been
pening in the last few
years.
Between
1950
hap¬
1955 the im-.
and
ports of bicycles rose from 70,000
units
to
1,200,000—an increase of
1,130,000 units. During this period
in this
country fell
production
from
million
two
to
million.
In
the
cordage
barely
over
field
imports
nearly
trebled in volume while
domestic shipments fell about 20%
and
in
but
all
line
one
eigner today has
for-
the
of the;
50%
over
business,
U.
S. manufacturers' shipments
sewing machines have dropped
severely since 1950 while imports
of
than
more
doubled
between
1950
1955.
In
field of textiles and ap¬
the
parel
have
we
become
the situation
seen
that
acute
so
in
certain
segments of that industry imports
risen
have
the
to
exceeding,
point
a
domestic
production.
emphasize that
behind the
competitive
position in
Again
let
me
the underlying reason
loss
in
industries
has
entirely to
al¬
been due
matter of price..
a
Traders
trade
a
on
midst
with the:
increasing development of normal-
most
to
and
general
a
these
World.
Advice
War
years
and
These two stated approaches to
the
the
lVz
buy they must sell."
the
in
of
upon
levels of economic activity
internally
and
high
levels
of
nigh
international
development
creasing tensions, followed by a
six-year period of war, followed
again by a period of reconstruc¬
tion, followed once (more by the
the
of
dent used these words; "For every
in
of
procedure
forth
Trade
recommendations
the
on
de¬
To Urge
OTC Membership Again
Looking to the future I firmly
believe that as our foreign trade
develops,
countries
the
overseas
developing
new
markets instead of seeking
to
displace markets already in
will develop a better understand¬
existence. ..Do
which,
vote
their. efforts
pays
Y2
in
his
to
the
want
we
for¬
market because he
labor anywhere from
to l/10th what we pay ours, or
eigner
our
he
has
good product—
a
maybe styled and designed better
than
ours—maybe sold better than
ours?
The
has
manufacturer
well
he
these
face
to
these
answer
advised,
adheres
who
abroad
problems
and
questions will be
it seems to me, if
to
policy—of which
the reciprocal trade program is a
part—aimed at raising the stand¬
ard of living of all the free na¬
our
the
As
difference
is
nations
national
will
a
between
standard of living and
other
reduced,
competition
develop
ducted
on
basis
that of
inter¬
obviously
that it
so
a
would
can
in
be
con¬
which
walks
in
have
an
a.
and
if
and
vehicle
did that in this country,
will
nations
build
on
basis.
a
The
may
jectives are:
(a)
Non-discriminatory
treat¬
ment of both imports and exports
by member nations.
(b)
Elimination of
barriers.
non-tariff
.
(c) Gradual reduction of tariffs
wherever
is
It
this
and practical.
conviction that
and the world can
possible
still
my
country
achieve
maximum
that
toward
these
progress
objectives
through
membership in the Organization
for Trade Cooperation—known as
the
or
to,
enduring
presently
this
In
all
the
acceptance
facts of life
established by
best be accom¬
plished is the General Agreement
on Tariffs
and Trade, whose ob¬
which
the
my
session
of
Con¬
providing for this
failed to pass. It is
judgment that it failed to re¬
ceive
of
last
bill
membership
over
basic
adhered
between
sound
OTC.
particular product. Well, if one
company
trade
gradual
a
of the
some
gress
substantially all of the market for
a
of
no
foreign competitor
takes
ing of and
unfair
advantage.
-Supposing
additional
seek
with
extent
economic
all
Industries
Where"do
tain
special message to Congress
a
country
Promotion
£2,851,562
of
group
Competition
industry tells Government
tions.
the
are
Certain
period
community.
We have expanded
are
any
£4,562,500
Trusteeships and Executorships
also
of
Somali-
£3,104,687
every description of
exchange
recommend
not
manufacturing friends that
Protectorate.
Authorized
do
reimburse industry on
basis, I can appreciate
point of view of some of
Branches in India, Pakistan, Ceylon,
Burma, Aden. Kenya, Tanganyika,
Zanzibar,
I
ment
2.
End
Uganda,
Although
such
Uganda
Bishopsgate,
C.
;
not
in
is
a
the Reciprocal Trade Agreements
Act was passed. First, a five
because
supported because we all recog¬
nise the highly important defense
aspects of the merchant marine.
But I wish to say in passing that
military strategists
have jiever
failed to recognize the essential
contribution made to victory by
in this country, but
activities of
the
Foreign
Service and in its applicability to
strengthening
With respect to the relationship
between the foreign and the U. S.
U.
to
of
ment the sequence of events since
I
payrolls this is the effect of what
happens. Suppose the payroll on a
situation
activities
a
but
difference in his wage cost.
—
Department
fi ee-trader
made
American
Exchanges.
CHICAGO, 111
the
which should result in
of State
erate in the U. S. coastwise trade.
'
With Rodman Renshaw
Rodman
in
program
repair, main¬
tenance, and construction, and no
foreign ships are permitted to op¬
Co.,
208
members
Exchanges.
La
with
agreement
personnel
a
our
a
celebrate the 22nd
ministration of this measure."
are
Street,
fees if he finds
shipping we recognize the
inequality in the wage cost and
apply what is known as an operat¬
ing differential, subsidy. Subsidies
(Special tc The Financial Chronicle)
&
op¬
portunities.
to
In
CHICAGO, 111.—William E. Mil¬
Chapman
authorized
the
of
investment
of
the
from
do not tolerate in this
we
of the world and the development
international
competition,
companies abroad operating under
cartel and
other systems which
•
of
picture
a
life-blood
such
were
not
countries
strength and not to its detriment.
No American industry will
te
placed in jeopardy by the ad¬
tion
Farwell Chapman Adds
Farwell,
or
agricultural
creation
visit
to
agricultural, products are subject
to
special import or processing
taxes. Furthermore, the agricul¬
ture of this country is promoted
in many products by a subsidiza¬
(Special to The Financial Chronicle)
DENVER, Colo.—John W. MacM.
is
the
for
jeopardy.
The specifications of
competitive products from abroad
are
carefully
limited.
Certain
Joins L. M. Ladet
Kusick
President
The
fruition,
the
New
differ¬
to
impose quotas
land
Exchange
BROADWAY, NEW YORK 5, N.
Telephone: BArclay 7-3500
Bell
be
to
(I^ondon) Brancht
13, St. James's "Square, S. W. 1.
Members New York Stock
Exchange
American Stock
trade
the
company
from
by the U. S. in international
tion
Randall
that
note
to
violent
are
be
me
manufactured goods,
we have a settled policy involving
almost iron
clad
protection for
some
segments of our economy.
questionable.
of
and
of opinion on tariff matters
ences
this bank hold¬
on
appears
Bank
there
New; relating
many
act is academic, for
company
there
L.
interesting
whereas
could not be
in
is
It
of
stock
Aid to Agriculture
Shipping
would
Department has inaugurated
of
Because
is
evolve
one
build
to
programs for the stimulation of
international travel, for participa¬
Alabama.
and
Federal
is, of course, possible that the
wide discussion
West
Laird, Bissell & Meeds
The
South
\
Request
Members
Carolina,
to
London,
Bulletin
in the votes cast by Vir¬
North
Carolina
folios.
of
Securities Co.
(L.
the
NATIONAL
Christiana
were
ginia,
England banks, bank shares have
become
an
important
portfolio
component, it is not difficult to
vizualize the upset to these port¬
Superin¬
saying that approval of the
appli¬
120
stock
company
substituted.
to¬
as
shifts
evident
eligible bank
by a holding
an
a
quoted
Similar
bill.
cur¬
on
Commerce
trade.
In
(Special to The Financial Chronicle)
New
tendent
their
to
holding com¬
to be outside
bank
stocks
pany
tal assets.
.
stocks
trust
list,
that
operated
under
New
York State charters. Of
the large
banks in the
city (let us say with
total resources of
$200 million or
more), there is one lone bank with
do
10 votes in the House to recommit
the
the
tending
Department
the pale.
tionally
41
(79%)
to
recent
in
shire, has admitted
1956, 11 were na¬
chartered
(21%), while
national
lists
And, while one, New Hamp¬
some open-end
years.
of the banks in Greater
New York
as of
September
grants
their
Georgia, for example, in the 1955
vote we saw a state which, be¬
cause
in recent years it has be¬
come industrialized,
cast 8 of its
have
others
of
kind
economic system, would be elimi¬
nated. How much worse off would
we
few comments
a
activities
rent
illustrated %'■ I believe there is also an oppor¬
tunity for industry to participate
be
best
may
by examining the recent attitude
of
the
traditionally
free ^ trade
Democratic states in the South. In
and
borders
City;
thinking
bank
eligible
own
York
New
Stock
Probably it is little realized
a
their
to
broadened
state
banks which became the survivor
and a third with a
national bank.
National.)
the
confine
stocks
their
gave up
institution,
First
ponents and outspoken opponents
in both parties.
The
extent
of the
change in
companies. Generally, the six New
England states have bank stocks
on
their
legal lists for savings
banks and trust companies. Sev¬
eral
lines.
partisan
along strictly
Today there are both | strong pro¬
panies for bank stocks could unset
the portfolios of a number of New
England savings banks and trust
charters upon merging with
others,
of
fell
com¬
of thinking
1934 the division
In
four years three
or
large national banks
two
trade.
affairs has been accepted for many
for¬
institutions?
recent years there
the
government's supervisory
policies? All state chartered banks
that
boast
membership
in
the
Change in Thinking in Some Areas
Federal
Reserve
System or the
Since
its
original passage in
Federal Deposit Insurance Coroo1934, there has been a significant
ration are subject to examination
change in respect to the thinking
and sunerv'sion by those two fed¬
regarding this approach to world
eral
agencies, and this state of
mere¬
merly existed in, at least, New
York Citv between national and
York
with
wrong
national
in
banks
number
a
largest,
is
What
State."
would
bring about a
'•possible impairment of the dual
banking system." It is difficult to
to promote
Legislatively
the
means for doing so has been pro¬
vided by the last extension of the
Reciprocal Trade Agreements Act
which, after lengthy and tumult¬
uous debate, was passed in 1955.
constantly
trade.
world
a
"subterfuge designed to evade the
supervisorv policies of New
en¬
this
fast.
Why?
trade.
First,
has
Administration
deavored
into
snowball
into
which
Secretary of Commerce to develop
subject as this one.
This
could
eligible
Banking
obvious—hardly necessary be¬
fore an audjence as erudite on the
Bank Stocks
cation
Department of Justice would
walk
the
City-County Trust Co.
Since the announcement by First
a
Thursday, December 6, 1956
.
the
4
Promoting World Trade
By ARTHUR B. WALLACE
a
.
pretty
Bank and Insurance Stocks
*
.
(2406)
consideration
either
House
on
the
because
floor
thei
op¬
position wanted to kill GATT.
We shall reintroduce next year
Volume
5592
Number
184
.
*>\£ tt '»v*mfr fr^n^spr. ^ "•
A
1
.ww "hfwhwilw t
a i.m£u*u<>f# cjw»u,™
:;. .»t :?r
!Mwsw^'SfcW(?i!S69?W
The Commercial and Financial Chronicle
.
.
1
a,
;
(2407)
the bill providing for U. S. mem¬
I
bership in the OXC, and I earn¬
estly hope that tnis time many
more Congressmen in both parties
vanish in thm air.
will
have
Foresees
Moderation Must
Great
in
this
I
Benefits
From
domestic
our
problem
great
other
hand,
ing
avoid
partners
and
ex¬
in
properly promote twotrade, I foresee expanding
way
business
of
and
have such
that
,
bonds
and
are
avoided, surely the goose that
lays the golden eggs will be done
away with. And this is neither
:"I
the
American
:
The
people
15
than
told
were
American
in
our
tempted
and
want
sound
to
basis
see
I
it grow
have
at¬
to describe.
international
(Special to The Financial Chronicle)
continuing
DENVER,
Imada is
contribution
Denver Club
to
Colo. —Henry
with Carroll &
Building.
my
products
the
of
Erie
Railroad
certificates
the certificates
who
DENVER, Colo.
Samborski is
and
now
—
Hutchinson & Co.; Wm. E. Pollock
&
Co., Inc.;
-
Norbert J.
with Coughlin
Company, Security Building.
and Shearson, Ham-
mill & Co.
4J/4%
serial
Two With Intermountain
scaled
are
to
the staff of Intermountain Securi¬
ties, Inc., 309 Columbine Street,
subject to the
are
of
(Special to The Financial Chronicle)
DENVER, Colo.—Mary V. Kirby
and James P. Solan have joined
the
With Bosworth, Sullivan
Interstate
Commerce Commission.
(Special to The Financial Chronicle)
ships
three
aggregate
With Coughlin Co.
&
Merle-Smith; R. W.
Pressprich & Co.; Freeman & Co.;
Gregory & Sons; Ira Haupt & Co.;
The Illinois
Co.
Inc.; McMaster
certificates, ma¬
Jan. 1, 1958 to
yield from 4% to 4.25%, according
to maturity.
Issuance and sale of
authorization
;
—Dick
yesterday (Dec. 5) offered $2,805,-
The
K.
Co.,
peace.
addressing
in
now
Halsey, Stuart & Co. Inc. headed
group
of underwriters which
equipment trust
turing annually
1972, inclusive.
Joins Carroll Staff
friendship
a
000
cus-
The
issue
is
to
be
(Special to The Financial Chronicle)
secured by
cars esti¬
500 50-ton capacity box
mated to cost
$3,625,000.
DENVER,
terline is
Colo.—Paul
gave
starring in MOBY DICK
•
A Moulin Production—in Technicolor
•
are
660 Seventeenth Street.
Presented
by Warner Bros.
•
moaera-
it
said, and I quote,
"Where changes are required tney
be
Must
ally,
embarked
with
gradu-'
upon
precaution
every
'
pos-
sible
taken
in
present systems of proauc-r
artd distress to individual
our
tion,
citizens."'
f
,•
And later,
•,
;
•
./
' /:
■
the President, in the. ;
mentioned
message
"The
'
.
dislocations
avoid
to
earlier,
I am
that
program
says,
here
recommenuing is moderate, grad-.
ual,
reciprocal.
and
erate program'
measurably
the
.;
•
add im- I
can
United
free
Positions
and; '
States
world."
Will
Injure
Trade Programs
j
.
mod¬
A
„
security
the
of
rest
.
.
the
of
Extreme
.
the
to
well-being
and
.
.
"
I have already pointed out that /
in
judgment if from either
view an extreme ,ap- ,v
my
point
of
proach is invoked, it will do our
foreign -trade program no good.
Now
let
tion
one
life
*
too
that if
discussion
whose
upon
us-/,
ox
is/
categoricallyf'
Congressman has a par¬
company
or
industry in
to you
say
district
back
*ts
of
^
a
ticular
his
tariff
a
depends
gored. I
fact
^
Baruch sometime since
that
ually
forgotten.
.
atten¬
your
important
very
often
Bernard
said
bring to
me
which
is
laid
flat
on/
by
foreign competition,/
that Congressman will vote to do
something about it or he won't be
back
in
to vote at all.tnis is quite true ir-/
respective of which party he be¬
longs to. The voting record in
Congress already cited must indi¬
Believe
Congress
me,
,*
cate that this whole
only
subject is not
becoming of bipar¬
rapidly
tisan
interest
that
but
sional views change
in
Congres¬
conditions
particular locality change.
the
as
*.<
*
And in
thethe
I
Congressman
is
refer
wilderness,
mind
that
you
member
in
with
his
to
voice
in
sat.re¬
particular v"'
this*
representing
district
trial
lone
a
I, who have
body, would
legislative
a
think that
you may
particular
whom
in
case
indus-,...
an
will
trouble
talk
colleague
representing
agricultural district or a min-
an
...
.*
ing district. They have their prob¬
lems too and you may have heard
the phrase,
"You scratch
my
back
Whales
and I'll scratch yours."
never
Must
I
should
I
were
marks
of
Avoid
a
in
but
less
we
problem
will
I
do
age-old
an
guessing and
and
re-
.
say
do
now
approach
on
a
little
Where's the
this
whale
...
...
but
oil
in
are
great
A stellar
tinue
that is, until the
petrochemistry's march toward greater frontiers.
But this demand
confined to
Moby Dick? In its hundreds; of
made with
products derived from
pe¬
troleum through the miracle of petrochemistry.
sound, constructive
a
producing oil for centuries
feet of man-made skin and gallons of crimson
blood. Both
fo you that un¬
Service products is not
sweeps
the spectrum of
Cities Service fuels and lubricants and echoes in
reserves
ers, new
in
offspring of the oil industry, petrochemistry
for Cities
petrochemicals. It
and refining facilities, new
new
oil
pipelines and tank¬
stations and dealers, and constant improvement
product quality.
Or, to put it
more
simply, it
means
that bigger and
moderate
basis, avoiding the
extremes, you and I could be
disappointed by the results.
For example: You
failure
to
might witness
renew
in
1958
would
Legislative quotas which
distinctly mark
a
backward
step in trade relations may appear
the
scene
approach
to
.
.
.
and
the
foreign trade
'
transforms crude oil into hundreds of petroleum chem¬
bigger things
icals wrhich in turn become the vital
for nearly half a century, a leader
countless
new
raw
materials for
are
coming
your way
from Cities Service—
in petroleum
progress.
products of everyday life: Miracle fibres,
the
Reciprocal Trade Agreement pro¬
cedures.
on
♦
square
contro¬
two
the
V
capable of making much
dent
versy,
brief
my
been
cinema's Moby Dick.
optimist indeed
an
consider
to
as
be
Extremes
have
has oil helped produce a
sound
which
"rubber" paints, and scores of plastics and drugs.
As
a
leading member of this dynamic industry, Cities
Service is
now
substantially expanding its petrochemi¬
cal activities to meet steadily
growing demand, and
con¬
CITIES
Cas-
worth, Sullivan & Company, Incv
Participating in the offering
•
GREGORY PECK
B.
affiliated with Bos¬
now
-
years.
lip service to
when
share
a
finally address¬
remarks to all who believe
this
at¬
times the amount of manufactured
Randall* Commission
more
tion
of
Halsey, Stuart Group
Offers Equip, Tr. Gtfs.
years ago
some
about
am
abroad
they could not drink. That experi-.
ment lasted
a
of
factured
ingredient,
You recall that
to
flow
remarks to
the American exporter of manu¬
surprising nor original because in
phase of life that I know
anything about, moderation is the
fj
i
goods
lasting world
every
desirable
to
am
—
unless
moderation prevails and extremes
activity,;
my
trade
on
t o m e r s
increasing economic
strength in free nations—stronger
great interest in this
a
of
area
commerce—the
tractive
entitled
employment in for¬
trade, which we
Say is good. But I say to you, who
world
is
and
we
eign
building
we
bring in here, and
addressing my remarks to
foreign producer who wants
am
market, and I
tremes and
finally to
come
the
on
trading
our
Prevail
We
products
certainly
Trade
If,
Warns That
will
the
its value.
see
share
suggested
27
@
SERVICE
Progress through Service
,
>
28
(2408)
The Commercial and Financial Chronicle
Continued
R. R, Wilson Joins
Our
Schwamm & Go.
Reporter
Governments
on
from
.
.
Thursday, December 6, 1956
.
9
page
Research in Business
By JOHN T. CHIPPENDALE, JR.
yard.
The
long Government bond market is backing and filling in a
professional manner, not too far away from the lows of tne
Although there has been a ratner modc.st buying interest in
very
year.
certain
selected
issues
intermediate-term
that
yet
Treasuries,
obligations,
especially
there
has been made
bottom
a
of
are
in
in
of
some
definite
no
the
indications
Government securities.
The
more favorable yields
which are available in corporate and taxexempt bonds continue to take the play away from Government
issues. This is likely to continue to be the situation for the fore¬
seeable
future.
expected,
was
The
boost
the
in
brings it in
and
FHA
line
rate
with
from
current
4M»%
to
5%
market
money
1
r
Raymond
Raymond
ft.
w .isu.i
R. Wilson is
now
purchases of Treasury bills by the Federal Reserve Banks,
wtll as by others, has taken the yield of these securities down
as
as¬
levels
sociated with Schwamm & Co., 50
to
Broadway, New York City. He
formerly Manager of tne mu¬
nicipal department of Van Al-
discount
that
indicate
to
seem
rate,
because
of
there
will
be
return
the
on
the
no
increase
shortest
obligation being well above the Central Bank rate.
Less Tension
styne, Noel & Co. and prior there¬
to
was
with
Union
Securities
in
to
the sizable purchases of Treasury
Spencer Trask & Go.
Spencer Trask & Co., 25 Broad
rai«ed, due largely
York City, members
driver's seat.
Stock
Exchange,
Jorgensen,
Charles E. Haydock, Jr., Henry B.
Bjorkman and Nathan Heilbron-
attractive
announced that Fred H.
are
associated
now
They
Haydock,
with
formerly
were
Schretber
the
Corporate and tax-exempt issues continue to be
than
Governments to most buyers
favorable
more
yields
which
Current
As
been
not
&
far
tax
With Bache & Co.
Market
Government
as
buying here and there.
switches
which
have
been
term
have
been
&
term
marketable
obligations
On the other
hand, there
Terminal
Reinhart &
with
were
Elmer E.
Building.
John W.
Co. and Central Trust
Ball, Burge Adds
Ball,
Burge
&
Kraus,
In the past he
manager of Vercoe
40
West
local
was
The
now
Bache & Co., 229
Avenue.
He
Lewis
Thill
D.
Wis.
—
Carl
connected
siire, with
R.
and
The
have
resulted
in
and
are
have
out
come
savings
of
the
longest
bonds.
are
too large, as l'ar as can be determined,
oeen
May Change Credit Policy
for
the
policies of the
demand for credit
the
no
monetary
great
as
authorities.
it
as
To
to
appears
be
be,
alterations in tie restraint of credit.
influence on the future trend of interest rates as well as the
credit picture. It is the opinion ol some
money market specialists
that the immediate
inflationary effects of the uncertainties in the
Middle East could give way in the course of time to
Marshall
Company.
ones,
which could have
here.
If this should
a
deflationary
important bearing on the economy
it is not likely that the very re¬
very
be the case,
strictive policies of the powers that
be, would be further tightened.
On the contrary, it might
bring about
in
our
loosening
derstanding of railroad yard op¬
eration, the company was certain
develop
products.
Another OR
of
name
'Operational
in
stock market
continues to
of
amount
the
watched
on
paper instead
air in their study deter¬
in the
mining operational problems cre¬
ated by such factors as weather
general flight patterns.
and
Research
the
in
the
in loans and other forms of
fact
lems
corporations.
ticle
the
the people.
equity market
inflationary
a
on
pressure
would
off
A
take
the
a
borrowings would make
A decrease
money
avail¬
(Special to The Financial Chronicle)
PETERSBURG. Fla.—Wade
Iiampton
Jewett
have
&
and
joined
Robert
the
staff
J.
ST.
PETERSBURG, Fla. — Joseph O. Blackman and Thomas H.
of
James
Company, 3006 Central
Avenue.
45 Milk
Wilh R. F.
St
R.
has
Campeau
F.
become
Campeau
CHICACO 4
BOSTON 9
Second Avenue.
ST 2-0400
HA 6-6441
with
small
as
is
an
ar¬
Though the
it
time
cuts
years
orders
typing
by
40%,
order
errors
by
one-third
subsequent savings in waste
with
material
per
took
reduces
now
master
on
and
work
returned
goods. Pa¬
circulation
dimin¬
in
ished, resulting in filing and read¬
ing savings.
Within six months
after
installation
tvpists
creased.
The
system
is
about
needed
were
although
50
in
sales
less
the
sales
volume
in¬
communication
new
also
used
for
other
messages
than
orders
sending
such
technical data, cost figures, etc.
the way for ALCOA's
automation of accounting, produc¬
It prepared
tion
planning,
and market
inventory
control
analysis.
ducing labor costs fully 60% by
correctly learning when to har¬
vest, pack, freeze and wrap its
food
product.
research
projects
single issue
such
companies
opment,
M.
A.
Commercial
Other
genthaler
Macy's
peake
done
were
Es«o
as:
Hanna,
for
Devel¬
Lockheed,
Solvents,
Celanese
Warner
Corn.,
&
Mer-
Linotype, Bamberger's,
Refining, Chesa¬
&
Ohio
Railroad,
Curtis
Marlboro Cigarettes.
For-:
merly with its dainty white pack¬
it
Johns
Publishing
Co.,
Administration.
They in¬
research
projects related
production, sales and distribu¬
tion, personnel and
clerical
as
the
one,
a
bold
package
red
tattooed
M.
now
Kidder
&
connected
Co.,
400
with
Beach
(Special to The Financial Chronicle)
Motivational Research
Though OR is
Bache
& Co., Inc.
&
He
Co.
associated
&
was
and
Co.,
110
BOSTON,
Stewart is
mann
&
formerly
McCleary
Stewart
Mass.
now
with
—
Emily
Jay W. Kauf¬
Co., Hotel Touraine. Miss
was
previously
with
Pont, Homsey & Company.
du
stir,
particularly
goods
Research,"
emphasis
logical
The
men
picture
enjoying
stout
at
realistic epough
that
they never
are
preciate
achieve
the
sylph-like
the former ads.
In
on
to
no
people.
thinking here is that the
people
stout
to ap¬
could
figures
in
both these in¬
stances, markets have
been
vastly
increased.
Realizing that coffee lovers
re¬
sent
any
aspersions to their fa¬
vorite drink, General Foods, after
MR consultancy,
changed its Sanka
campaign to the theme of you can
drink
as
without
much coffee
losing
as
perpetuate
about
want
you
sleep,
any
than
rather
jangled nerves!
the
old
jingle
Of
course, MR, new on
search horizon,
raises a
problems,
not
the
least
the
re¬
host
of
of
which
a
fear that advertising will be
stereotyped and much of its effec¬
tiveness
nored
lost, yet it cannot be ig¬
since
it
is
one
ing to depend
research
are
com¬
upon.
Electronic
Generating
the
of
more
tools that executives
new
Computers
important
an
the
are
host
area
of
of
newly
developed
electronic
computers.
They promise so much, vet their
cost
is
and
great
gradually
executives
coming
to
are
understand
that
these
good
as
work.
They recognize too, that the
problem, once the decision
real
has
been
tronic
machines
onlv
are
as
the brains that direct their
made
install
to
computer is
not
organization
just
there
use
swamp
two
it
an
mountains
are
involved
electronic
an
to
elec¬
an
how to
with
So
research
of
steps
here.
First,
comouter
serve
This is the feasibil¬
purposes.
probe,
field
i<;
in
the
"Motiva¬
psychological—
a
Freud—socio¬
on
sometimes
best
work.
to
put this computer to
For
instance,
medium-sized
nies,
before
"brain,"
decided
consider
the
the
policies, the billion
insurance the company
good.
public
dustrial
or
also
relations
relations
a
is
It
men
being
and
in¬
studying
the public's attitude
particular
company.
It
at
in
They
impossible
their
is
give
for
so
of
research
products
last
year,
a
full
yet
their
they met with
and
demand
instead
of
accom¬
well
but
the
confined
to
the
important
and
business
success.
The round robin of research that
demanded
by
new
that
some
forms
they
the
use
computers
development
"Fortune" Magazine reports that
the $260 billion spent on con¬
could
not
repetitive
functions
mammoth
they
it
tasks,
did
scope
costly,
ing the
doing.
If
additional
plish
determining the "real"
people buy or think the
things they do, instead of report¬
reasons
could
a
400,000
things
do.
they
help and
savihes only if it could perform
live highly important functions to
force.
thev
that
machine
had
by
compa¬
a
practiced by cultural anthropolo¬
gists, into why people buy the
even
the
of
one
insurance
installing their
of
sumer
now
cocktail crowd and
a
dollars
of
redesigned
was
ads
longer is slanted
reason
A.
and
muscular
appeal to
how
and dramatic
new
hand mysterious, it-is by no means
the only research tool business is
using.
Creating a stir, a contro¬
aims
la-'
ity survey, and if so which of the
transportation scheduling. "several types available is best for
a
specific company. And, second,
as
employees
With Jay W. Kaufmann
the
Similarly the ad direction
Ry-Crisp crackers was altered
can
used
for
this Philip Morris product.
our
with
considered
was
only.
On the basis that men
smokers outnumber women two to
cluded
well
For
of
in
Atlantic
Manville,
products.
instance, MR has completely
changed
the
advertising
pitch
OR
mentioned
Swasey, International Minerals
Chemicals.
food
is
The same issue tells how Seabrook Farms, by using OR, devel¬
oped a climatic calendar thus re¬
frozen
con¬
products
gasoline, bev¬
soap,
and
erages
as
toward
PETERSBURG, Fla.—James
Donlan
with
A.
are
Drive North.
(Special to The Financial Chronicle)
*51 So. La Salle Su
day.
a
installation
versial
Two With A. M. Kidder
ST.
well
Featured
half
effect,
money
(Special to The Financial Chronicle)
J.
testimony to
solving prob¬
is
as
to
tion
I
"Operations
detailing how ALCOA by in¬
to
cigarettes,
as
of
nearly the same in qual¬
performance and price such
ity,
dies
stalling a ticker tape system cut
order processing
time from one
lessening in the demand for the
Two With Bieder Co.
ST., NEW YORK
is
OR
large
Examples
of
Digest"
that
for
consumer
WHiteb.il 3-1200
issue
recent
choice
a
are
age
Other Project
A
that
to
by money market
psychological influence
decline
of
be
able for the bond market.
IS BROAD
flew
men
has
sumer
of
by individuals, corporations and tax-exempt entities.
INCORPOKATED
OR
particularly ef¬
fective in markets where the
statistics.
Watched
goods and services which have been responsible for the borrowings
8c Co.
Gaming."
jet transport
The
used
General Motors, General
Electric,
AT&T, Goodyear, Procter & Gam¬
ble, General Foods and Chrysler.
Power
continuation
Bieder
fancy
United Airlines, for instance, used
this in preparing for
operations.
those
have
directly or through their ad¬
vertising agencies. These include
house Electric and the Bonneville
market, because there might be
Aubrey G. Lanstojt
the
1955,
from
that
MR seems to be
has
in
came
MR
.properly,
consi 'erable
Fhave
equip¬
new
advertising
on
nearly $1 billion
big corporations
Commerce Dept.. H. J. Heinz, Brit¬
ish
Overseas
Airlines, Westing-
The
ST.
tool
spent
Authn'-hv of W>w Vnrk. TT. R.
followers because of its
Securities
and
areas
facturers had tried MR. They point
that of the close-to-$9 billion
out
country, which would not be unfavorable to fixed income
Stock Market's Course
U. S. Government
those
half probably went to industries in
which one or more major manu¬
credit
some
bearing obligations.
Specialists in
changes
evaluate
it could better
this
an
with
yard
development of new
equipment could contribute to
yard operation. With a better un¬
office
indications that public funds
However, the complicated international' situation might have
with
formerly
of
there should be
East Wisconsin
was
demand
modification
(Special to The Financial Chronicle)
is
recently
loans, and the indicated future needs for
arid credit for capital purposes, does not augur very well
change in the tight money conditions unless there is some
for any
With Bache & Co.
MILWAUKEE,
funds which
International Situation
& Co.
money
Raymore
made
of the
some
they have been important enough to give a certain amount of
support to a market which is very thin and at times rather
thoroughly disorganized.
C. Luft has become affiliated with
Third St.
It is indicated that
but
Clarence
—
attracting
public funds have not
(Special to The Financial Chronicle)
Ohio
has
continuing to make purchases of the most distant Treasury bonds_
as quotations have declined.
Also, reports have been current that
Government agencies have been buyers of the
longer-term Treas¬
ury issues in times of price
weakness.
These commitments by
Company.
MANSFIELD,
there
(on the buy side)., than
It is reported that certain of the intermediate
as the 1961 maturities as well as the 1964/69s,
Cook has joined the staff of Bache
formerly
and
opera-:
the
complete
concerned,
are
procedural
isolate
week
Transactions
obligations
disposed ol.
issues, such
Dixie
former
slightly larger commitments being made
(Special to The Financial Chronicle)
was
more
because of
the
reported changes in the over-all demand for them,
though selected maturities are beginning to attract a modest
even
Co.,
in
any
amount of
He
bonds
~
the
Watts.
—
of
available
are
securities.
with
Mitchel
CINCINNATI,, Ohio
through
improved
classification
from
away
much in the
very
the
daily schedules
bills by the Federal Reserve
have funds available for such investments still
information
for
the
of
where
of
the money market. To be sure there is no
let-up in the restrictive
policies of the monetary authorities and no immediate change is
looked for in the very tight money and credit conditions which
have been prevailing. This means that the market action of fixed
income bearing obligations is as uncertain as ever, with those who
Four Join Staff of
ner
the
(
Banks, has tended to take part of the extreme tension
firm.
in
Treasury
Money Market
The fact that the discount rate has not been
Corporation.
Street, New
tion
The
was
of the New York
mendations
ment
conditions.
:
this
With
company expected to make recom¬
and
of
are
of
utilization
management
able
instances
these
includes the
to
they
have
of
data
create.
In
pro-
Volume
voked
to
by
overcome
data
processing
decentralized
a
have had
5592 .*.
which
problems
be
the
Number
184
have
.
The Commercial and Financial Chronicle
had
centralizing
operations of
They
company.
an
impact on personnel
by eliminating many hitherto im¬
portant
clerical
tasks
have
and
of
name
diversification
they might
this
does
claim
not
tax
that
mean
that
so
losses,
but
the
cor¬
porate shell gimmick is yet ex¬
hausted; instead, it continues with
new
and
ance
sheets. The Internal Revenue
fancier
juggling of bal¬
the
search -of how
tives.
increases
ent
the
fair-sized
fided
company
how
since, business advisory organiza¬
if
other hand they have turned
into
tions
rather
than
raise.
Chances
research
new
for
work
salaries.
tools
such
on
themselves
in
problems
minimizing the total cost of
duction
one
or
cost
which
depend
may
pro¬
upon
of such factors
more
as
the
as
of
have
found
that
tifically
ments
approaching
of
planning.
today how
nocent
projects,
ponents
penses
to
or
materials, the cost
it or the cost of
raw
overtime
and/or
of
training
new
tejling
purposes,
products
workers.
The
is
Increased Volume and Profits
the
tax
no
distributing
selling tax
services pays off better than their
wildest
dreams
would
have
led
them believe and thus are scien¬
making the product, stor¬
ing it, purchasing the needed com¬
of
Ever
be
are
or
tax
refine¬
There
started
as
incurred
now
new
is
in¬
many
ex¬
for
tax
thriving
new
companies.
angle
is
being studied in
raise
connection with
company
instead
it
look
worried
help
is
tax
his
themselves
to
get
which
the
his
about
send
may
in
him
may
set
confreres
studying
the
Also
com¬
being
including
that
some
be
can
so
such
cost
margin^ ip^vitably follows
voluihd"*no
longer holds
industrial expansion
has greatly increased the clerical
Rapid
load
and
much
ized,
stems
tape.
Much
de¬
of
this, it is real¬
from
corporate
research
red
currently
Monsanto
Cedar
Chemical
has
at
Monsanto,
retention
pe¬
riods for the transfer and
disposal
of records in
order
keeping costs to
to cut
minimum, have
a
interest
as
insurance
free
and
loans,
medical
programs.
This
in
estimated
time
values for
all
workers
for
review
in
segment
operation
of
and
E.'s
Cincinnati, Ohio
Findlay, Ohio
at
and
designing
Columbus, Ohio
forms
aimed
reported
forms
and
old
Tulsa, Oklahoma
du¬
Charleston, South Carolina
needed
Spartanburg, South Carolina
uniformly,
and
Nashville, Tennessee
dis¬
Valleyfield, Quebec
economical
as
insuring periodic-
forms
revised
and
study of
DEWEY
&
ALMY
costs
their product mix
decide
where
output.
on
items
and
relative
to
through
with
materials
and
products where be¬
constantly
fluctuating
commodity
prices,, margins are
considered vulnerable.
Another is
through weeding out those items
incapable of carrying their own
weight cost-wise. In this act are
big companies
as
Corn Prod¬
ucts
Refining, Kendall and U.
Plywood Corp.
Research
Tax
Is
Chicago, Illinois
i
Cambridge, Massachusetts
and laboratories in
S.
DEWEY &
ALMY OVERSEAS
COMPANY
DIVISION
Buenos Aires,
than
Melbourne, Australia
you
think
of
bigger bite
corporate profits these days.
keep reminding themselves of the
learned words of Judge Learned
Hand:
"Anyone can arrange his
so
low
that his taxes will be
Yes, the Government
ruled
of expansion in chemicals.
a
seven
divisions devoted
to
chemistry Grace provides industry
growing variety of essential chemicals and chemical-based prod¬
To
meet
increasing demands at home and abroad Grace is steadily
enlarging its facilities.
.
,
Epernon, France
^Hamburg, Germany
Among these projects
catalysts,
CRYOVAC
chemicals.
Naples, Italy
are new
plants for the production of petroleum
plastic packaging, sealing compounds, and polymer
Today the facilities of the chemical divisions
represent
assets.
CHEMICAL
DIVISION
Memphis, Tennessee
GRACE
CHEMICAL
RESEARCH & DEVELOPMENT
COMPANY
DIVISION
as
have
against companies buying a
corporate
shell
in
the
defunct
expanding its chemical operations,
in
paper
moving ahead rapidly
production and petroleum
in diversified Latin American
in world
For
POLYMER
.
enterprises
.
.
.
.
*
trade, transportation and finance.
copy
of 1956 Semi-Annual Report, write
CHEMICALS
DIVISION
Baton
may
Besides
W. R. Grace & Co. also is
New York, N. Y.
possible."
as
program
Sao Paulo, Brazil
London, England
COMPANY
Lawyers and accountants are hav¬
ing a
heyday and businessmen
affairs
with
ucts.
Argentina
currently is how to lick that
a
dynamic
With
Problems
problem. When
it, taxation is taking
Through
of Grace's net fixed
Without any doubt the most in¬
volved area of research in busi¬
ness
a
Montreal, Canada
*
tax
Lansing, Michigan, to Baton Rouge, Louisiana, from Sao Paulo,
to Hamburg, Germany, W. 11. Grace & Co. is building new plants
Brazil,
GRACE
Coping
From
Acton, Massachusetts
Adams, Massachusetts
Specialties
of
cause
Leandro, California
in¬
consumer
branded
semi-finished
t
thus
portion of
One-way that has
raw
•
San
this
''upgrading"
emphasis
on
creased
throughout the world
DIVISION
is
re¬
highest
and
are
been found to effect this is
product
to
in order
their
lines
concentrate
their
rising
companies
many
Symbol of service
CHEMICAL
forms.
of
pressure
profit margin
such
Alliance, Ohio
in
over-all
This
was
Maryland
Pompton Plains, New Jersey
COMPANY
search
to
G.
20%.
Albany, Indiana
Wilmington, North Carolina
re¬
costs
production
of
possible
The
Co., 53 State Street.
Joplin, Missouri
metal¬
department
unnecessary
the
tribution
to
Electric's
of
by
and
forcing
Thomas H.
with
Lansing, Michigan
that data could be trans¬
making
review
now
Trenton, Missouri
paper
printing
forms,
so
mitted
is
is
Lake Charles, Louisiana
forms
program
eliminating
•
all
products
plicate
turn
Freeman
Chronicle)
DIVISION
Curtis Bay (Baltimore),
elimi¬
of
internal
control
new
tasks,
hiring.
General
lurgical
as
other
increased
forms
pen¬
—
Perry, Iowa
pa¬
required for production
of a single product in
eight branch
plants.
The
results
have
freed
that
BOSTON, Mass.
care,
Wakarusa, Indiana
work
duced
(Special to The Financial
Fort Pierce, Florida "
New
Rouge, Louisiana
Clifton, New Jersey
W. R. GRACE & CO.
Executive
,
Keller Adds to Staff
low
Jacksonville, Florida
predetermined time standards,
stop-watch
measurements
and
used
_
Bartow, Florida
Illinois Glass Company
measuring office costs by means
A
,
CHEMICAL
COMPANY
record¬
set.
nated
;
r
of
per
'
Toronto, Canada
Owens
Is
itself.
in
Rapids, Iowa
DAVISON
as
problems and the business of cre¬
ating the tools to solve them is
indeed becoming a
big businesr-
Greenville, South Carolina
substi¬
pilot plant for a rather
expansive microfilming operation
and thereby saved almost
$250,000.
well
is hardly a
brings new
Lockport, New York
a
been
static affair. Each year
DIVISION
is
as
the executive front*
Serving industry
directed at reducing paper work—
the red tape.
For example,
Now
on
well can see,
you
CRYOVAC COMPANY
and
tuted
Research
as
are
finding
adage that higher
old
once
higher
true.
are
magical fringe benefits
tax-free to him
are
his employer.
to
executives
that the
profit
with
by
uppea
as
sion
the
for
exercised
advantage
that
em¬
but is causing him to figure
that
of
their
desires,
Decline
Many
to
plans
recreational, educational and
is
done
proceeds
tax-free
pensation plans being peddled. The
here
full
part of the tax picture,
smaller
employees
are
sharing
each year in more fringe benefits
host
newly developed deferred
his
lower tax
in full force.
now
While
figures.
is
option
when the executive
to
he
a
the
be
Stock
warrants
off
Africa,
would
executives,
blood
what the
pay
earning
Research
estates.
then, just to
though the com¬
hunting
their
away,
as
they
game
another
and
is
big
him
he'll
on
how much his real income can be
insurance,
ees
car
effect
an
lower rate if the recipi¬
how to offer executive employ¬
on
having
ployee Js-asking of his employer
not only with an eye to take-home
longer
a
no
bracket.
be
a
is
salary and thus is in
con¬
would
him
gave
are
pany
pressure,
he
voting
make
of
also* that
one
the
wistfully
grateful
until
actually received
possibly upon receipt will be
taxed at
meaninglesis.
Just
day the president of a
other
income
as
are
the
and
milestone.
was a
ferred payment will not be taxed
execu¬
and
On
evaluation
on
hold
of to¬
day's business executives, report¬
edly, are in brackets where salary
Act of 1954
research
new
to
Virtually one-third
job
given rise to
29
(2.409)
Offices: 7 Hanover Square, New York 5
55%
Keller
&~
30
(2410)
//
''
s.
The Commercial and Financial Chronicle
S*
and Chairman of that bank's
mittee
tions.
News About Banks
OFFICERS, ETC.
Bankers
and
REVISED
will
tional
City
of
The
Bank
appointed
was
Executive
of
Standard
First
Temple,
Ltd.,
New
York,
member
a
Na¬
of
the
of
Board
Dec.
4
on
upon
the retirement
of
Sosthenes
Behn, Honor¬
ary Chairman
of
the
Inter¬
national Tele-
phone
and
from
ard
Bank
have
holders
senior
director
in
years
of
ice,
Temple
having
served
board
since
1925.
serv¬
the
on
Mr.
Tempie is
the senior officer in
charge of the
bank's Economic
Department and
the Monthly "Letter on
Business
and
Economic
Cohditions."
also has supervision of
public
relations
the
became
bank's
activities.
Temple joined the bank
He
He
He
is
tual
Trustee
a
Insurance
of
Atlantic
Mu¬
Co., the American
Academy of Political Science and
the Committee
velopment;
tial
for Economic
De¬
Director of Pruden¬
a
Insurance
Co.
of
Great
Britain, Seaboard Surety Co., the
Hudson
York
Insurance
and
the
Co.
of
New
Centennial
Insur¬
Co.
ance
#
♦
Simmonds,
Jr., President, are Elliott Averett,
Banking Department; Charles H.
Fritscher, Credit Department and
Clifford P. Kingsley, Investment
Department.
Promoted
to
As¬
sistant Vice-Presidents were Wil¬
liam K. B. Middendorf and Rich¬
B.
Tuttle,
partment.
were
Banking
William
promoted
pointed
Jr.,
to
J.
Trust
De¬
Beer
was
Officer.
Assistant
as
Ap¬
Secretaries
Olga M. Bendix, George E.
and
Joseph
L.
Lalla.
Garvin
was
Company, at 100 Broadway, New
Xor.H' ^eld
on Dec. 4, a quarterly
81% cents per share
the capital stock of the com¬
of
payable Jan. 2,
stockholders of record at the
close of business Dec. 14. This is
an increase of
6% cents per share
over
the
quarterly dividend
of
cents
each
the
of
the
meeting
directors
extra
for
quarters
At
year.
the
an
declared
previous
current
clared
share
per
the
of
in
usual
dividend
*
J.
have
and
been
Vice-Presidents
of
of
nounced
by
J.
in
at
books will
York,
over
the
division.
it
trust
last
Baker,
was
de¬
an¬
weekend
President.
Also
in
the
trust
department,
Robert
W.
B.
Delevan P. DeLong,
Miller, Jr., and James
North
sonal
were
appointed
Per¬
Officers.
Donald F.
Trust
Eggleston
Planning
was
appointed
Officer.
*
❖
15th
New
York
from
2nd
to
January 1957, both dates in¬
Estate
Agency of the
cash,
Hi
Company
special
Garden
of
meeting
approve
2%,
for
City,
Dec.
on
of
26
30.
one
shares
50
on Nov.
dividend
stock
a
ratio
a
each
Nov.
capital
the
of
Nov.
16,
of
bank
stock
on
a
in
out-
1909.
and would
.
each
held,
Frederick
effect
raise
of
the
the
action
bank's
The
the
proposed
Second
stock' from
$1,120,000 consisting
112,000 shares of $10 par value
each, to 128,240 shares totaling
$1,282,400.
An item bearing on
of
additional
stock
issue,
consolidation
National
Somervillei
N.
J.,
-
and
the
with
the
each
$20
First
County,
19,
of
the
two
according
the
to
News"
by
of
have
the
bank, it is added, will be
$762,500,
composed
of
30,500
sh$re.
a
continues:
paper
consolidation
with
a'
•^^I710S^
votes
u
and
proxy
favor
wfere
cast
than.- 90%
more
of
^
V
*
by
for
*
*
5%
a
stock
dividend
and
A
stock
which
of
$70,000,
26,
effective
Oct.
has served to increase the capital
of the Central National Bank of
Jan.
of
of
with
stock
common
the
and
First
the
Concord,
National
of
Caphal
of
Concord,
with
stock
of
$250,000,
became
tive
Nov.
on
the
the
National
and
Concord
enlarged
have
under
value
The
bank
stock
$10
will
of
$450,000
of
not
each;
less
than
H:
The
Trust
Co.
National
Bank
&
Conn.,
death
of
bank
Nov.
on
Hs
Hs
Acquisition by
merger
of Citi¬
National Bank & Trust Com¬
of
pany
tional
Caldwell,
State
N.
J.,
by
the
was
directors,
tional
State.
rectors
it
W.
on
bank's
was
Apgar,
Nov.
29
board
of
Citizens
and
Caldwell
likewise
by Na¬
Newark,
announced
President
The
J.,
of
approved
President
Stillman,
N.
Bank
Newark
Howard
Na¬
W.
of
by
Paul
National
ren
deemed
Caldwell's
A.
Allen
dend
v.
bank's
approved
Norris,
interest"
a
000.
to
bv
War¬
1925,
in
made
was
1946;
Mr.
Vice-President
a
Hummel,
who
has
Trust
Company,
13
offices
which
tne
Fi¬
including
Fidelity
founders.
in
has
now
Pittsburgh
three
in
The
bank's
new:
.
$3
million
stock,$1,500,000 in sur$400,000'"in undivided
*
*
of
two
Currency,
to act
21.
The
the
stock-
respective
the
of
and
banks
the proposal on Dec.
on
twp
dis¬
Bank
of
the
Bank
Central
of
Free-
National
Freehold, and it is
R
National
K
.
tlle
name
Bank.
million.
Mr.
,
National
Pa. voted
*
of
Bank
on
*
-
proved
issuance
Philadelphia
of
Philadelphia,
Dec. 4 to recommend
shareholders at the bank's An-
nual
Meeting
the
re-
have ap-
50% stock dividend and
a
of
-
132,342
additional
shares of stock at $30 a share. The
capital is being raised
deposits that will be as-
cover
sumed
of
as
result of the purchase
a
Washington
225,000 votes
number
bank
on
be
Jan. 15 that stock
^frlit
on
a
three-
Trust.
85%
—
Almost
of the total
shares—were
of
cast
of
Plans
for
the
the
of
the
Company by
Pennsylvania
Na-
Bank
Nov. 22
acquisition
Trust
Western
were
issue,
page
*
*
noted
in
our
2200.
oldest
27 with
at
an
depositor
was
date
which
account
she
was
a
with
of
the
had
shares
each;
of
of
undivided
the;
un¬
merger
was
stock
in 382,604%
stock, par $20
common
surplus
the
Bank,
capital
a
$17,652,083.33V3,
19
at
merger
National
title
effected,
Nov.
that
the
$50,360,416 66%;
profits of not
less
than $17,217,637.02.
«
H«
Appointment
tran
to
the
*
>.
cf
'
H.
C.
Boulevard
111.
Ford-
staff
management,
National
Bank
of'
of
announced
was
.
on'
Nov. 26 by O. Paul Decker, Presi¬
dent... Mr. Fordtran, well known
in banking, and audit circles for
the past 25 years,
has recently
been serving as a
Consultant 10
Dr. Lloyd Morey in the Illinois;
State
Auditor's
this he
cial
was
Office.
Vice-President
son-Jones
Co.
Fordtran
Ward
Co.
for
For
18
with
was
&
Prior
to
Controller and Finan¬
the
Wil-,
Mr.,
years,
Montgomery,
Order
Mail
as
Di¬
visional Controller, and laccerly as
a member of the Divisional Man¬
agement Board.
nancial
He began his fi¬
1928 witn the^
in
career
Wilmette
State
Wilmette,
Bank,
Illinois.
*
-*
*
National
Boulevard
Chicago, 111., has
to full
fective
2,
it
Paul
Becker,
of the bank, states
is
move
in
ef¬
announced'
was
O.
28.
President
this
Association,
House
Jan.
Nov.
on
Bank
elected
been
membership in the Chicago
Clearing
that
interest
the
lection
by
checks.
of
in
step
in£ormaI
the
of
.
Clearing House
in all phases
The Chicago-
Association, with'
appointment,
will
resent
85%
in
sources
Boulevard
13»
the total bank
of
the
Chicago
Bank
has
been
re-%
The
area.
an
af¬
filiate member of the Association
for
35
years.
«
The Exchange
Chicago, 111.,
1 *
National Bank of
now
(as of Nov.
has
of' $1,600,030,
.* the
been
increased
from $1,400,000 as a resuLt of the
sale of $200,000 of new stock.
23)
capital
a
amount
having
of
Oct.
❖
26
the
office
of
the
Currency at
Washington issued a certificate
making effective Oct. 31 a merger
Comptroller
of
teen-age girl, received
have
members, which collectively rep--
of
congratulations of John A. Byerl^,
Fidelity President, and other of¬
intro¬
an
regular,,,rp,embers, and 13 affiliate1
bank's
since
col¬
Boulevard's
of customer service.
honored.
Fidelity
is
It
the
plans for expansion
this
rapid
more
a
—
Miss Ella Black, 85, who has had
an
his
"Bulletin,"
Philadelphia
As
which
in
reports
Weekly
*
Fidelity Trust Company
of
Pittsburgh marked its 70th anniNov
our
Nov.
effective
and
in
made
was
22, page 2200, the
Comptroller of the Cur-:
S.
of
com¬
$16,648,333.33%—to
in
favor of the proposal; it is added
that no negative votes were cast,
observance
The
of
rency,
der
$912,500
National
Acqui-, providing better service to bank
Cancelliere also
stockholders
vealed that
ver£ary
*
Directors
of
TRUST
McKeesport,
Pa.,
depositsifo over $135
indi-
Sifith.fiieSerger WiU
U.
of
&
Pa.,
Philadelphia, with
stock
issue
Bristol,
stock
which reference
ductory
tional
National
and
to
purchase
the
the
,
the
of
merger
Bank
Philadelphia
of
increase
Washington
First
common
the
customers
banks, according to
the "Newark Evening News" are
hold
with
into
Bank
mon
Valley
Company
sition of Washington-Trust's more
than $30 million in/deposits will
to
consolidation
Freehold, N. J., banks, have, it is
said,
received
preliminary
approval from the U. S. Comptroller
are
approved
WASHINGTON
additional
*
Proposed
holders
of
nounced that the bank's stockhold-
bank's total
and
the
Gancelliere
COMPANY of Pittsburgh.
profits."
of
A.
Pennsylvania
National
Bank of McKeesporfc Pa., has anhave
of $1,050,000 in
up
President M.
Western
the
capital struc-
"ture 'will"total me'&rly
Trust
of
0f
■
Delaware
the
The
y
5,000
.
of
Assistant Vice-President,
ers
bring the; total to 105,wiljL.be payable Feb.- 5
"The
an
divi-
stock
Referring further to the
Richie joined the Society in 1952
*
to
It
Vice-President in 1950, while Mr.
quote:
shareholders 61 record the day
di¬
Caldwell -director
named Vice-Presidents. Mr. Walt,
who has served the bank since
has outstanding
vadd4>another.
the
communities,
"most advantageous
C. Watt was named a-Senior VicePresident' and J. George Hum<mel and Russell W,: Richie were
k
account-in /the" as
we
now
said.
will,
shares
p..
plan. The merger, extending Na¬
tional State's branch
system to
18
offices
in
five
was
Mr.
an¬
9.
at
40,000 shares of-:$25 par value
each, and the 2%-for-l stock split
will mean their Replacement
by
100,000. shares/)fy$10 par value,
Evarts
Chapman Stevens, Sr., Vice-Pres¬
zens
"The bank
capital
Meriden
of
the
indicated
paper
plus
the
nounces
Jersey,
Jhe bank,' it is-learned
the' ""Newark Evening
dollars, made
Hs
pro-
was
0f
8," it
News.". From
of
profits
$484,259.
Hs
Home
New
stock,- of.the meeting.■-.-'•A"
surplus
undivided
and
of
Bank.
consolidated
$1,250,000
of
title
in 45,000 shares of common
parr
effec¬
Bank
the
National
capital
a
common
9, under the charter
First
Concord,
H.,
$150,000
State
Bank
of
Na¬
N.
split,
of
from
*
of
iq
Nov.
on
has" been
made-been associated^ with/the Society
known by Samuel L. Allen, Presr- since 1931, became 'en Assistant
on
-
Bank
Bank
stock
New Brunswick, N. J., are to be
acted upon at the annual
meeting
of the stockholders of the
bank
Canajoharie, N. Y., from $700,000
to $770,000.
•» dent
*
2%-for-l
a
tional
dividend
became
the
former
many
timers,"
of
Chicago,
made known by the Board
Managers ..following the ad4 vancements,'^according
to
the
v "Philadelphia
Inquirer."
Henry
.
Plans
Society of Philadelphia,
were
consolidation.
posed by the directors of the NaH*.
"old
The
recalls
some
the
$75,000,000 capital ai$ surplus,
' "'
:
*
- *
on-
peared in these columns Nov. 29,
H:
maae
took
stockholders
ap¬
be
cap
shares with a par v&lue of $26,478,125. -Surplus would be $48,521,875 to make up£the total of
The Newark
"Thevyote
distribution
place at sepa-^^he
promotion of three officers
meetings for stockholders df i 0f ^he
Philadelphia paving Fund
rate
ln
stock
common
a
essential for a strong banx in
an expanding community."
Upon
completion of these£changes tne
882,bU4 1/6 shares n&w outstanding would be raised to 2,647,812 V2
new
of
in
so
July 16 last and Second
of $25
"The
retarding v5$ h e
future
growth of capital funds whicn are
National's assets of $10,64.9,709 on
the same date. The capital of the
par
President, said:
witnout
the First National Bank of Bound
shares
is
This
assets
$29,901,896 4— representing reof $19,252,186 reported by
on
in the cash dividend
position t& distribute a
portion of the improved earnings.
sources
Brook
of $5 on
share and
Philadelphia National Bank has
a
point, we^ feei, where
20.
that
compare
reached
"New- it
total
rate
\ valu#
par
eric A. Potts,
on
Nov.
quoted states
will
would
present
tnree
on
shareholders would receive, f red-
the
banks
This
of 8%
crease
Somerset
approved
was
stockholders of
Nov.
of
y£ar
would therefore amopnt to an in-
Bank
of Bound
Brook,
J., under the title of the First
Bank
represent^ total pay¬
per
shares.
of
page 2307.
Hi
delity
,
$5.40
of
Bank
National
will
capital
of
ment
bank
rata
pro
for
bank.
*
founded
paper
stock
the
teacher
shares would become three shares merged with the Colonial Trust
equaling $30 in par value. <
Company, combining a trust com¬
approval of the Comptroller
Management of^the bank also pany, Fidelity, with a commercial
of the Currency. Earlier this
year,
announced that, ltjplans to recom- bank, Colonial. The Fourth Ave~;
National
State
absorbed
the
rrle9d
initial quarterly,. nue building is now known as
former Irvington Trust Company, d*Yld<:nd .,or?
V?1UnuW J ? *jay7 the Trust Office of Fidelity. The*'
with
over
$15,000,000 resources, able April 1, 1957, be declared at company
was
established
wuh
and
in
July acquired the First 45 cents per share.-It was pointed capital of $500,000. It no w has as¬
National
Bank
of
Millburn, of out .that if continued on an an- sets approximating $250,000,000.
similar size. National Stale is 144 nual
basls ^1S
#
a
#
enJ; 10
years old; Citizens National was
an annual rateroL4^80 per share
Evening
record
the
to
share
new
shares
to
the
of
10,000 shares
are
of
the
new
share
new
addition
one
the
be
the
shares
ficers
school
standing, and its assets are $11,000,000. The merger also requires
The
held, payable
holders
to
In
record
that
two
Thursday, December 6, 1956
.
.
$7,500,000 to any one borrower, trict,
including
the
Under the plan it was stated that Golden Triangle, was established
on or before Feb£18 two addi- Nov. 27, 1886, in a building on
tional shares will be issued to Wood Street not far from its
each stockholder of record Feb. 1. present main office at 414 Wood
The par value of the outstanding Street.
In
1889,
the
company
shares will then be restated at built a 7-story granite building
$10 each as compared with the at 341-343 Fourth Avenue, which
present par value of $20.
Thus served as the main office until
one
of the old $20 Par value Aug.
6,. 1954,
when
Fidelity
merger,
by
stock, plus $10 in
share of Citizens
There
of
stock
eight
ex-
both
Caldwell
27
through the sale of
14,000 additional shares of $10
par value, for $32 each to holders
basis
of
each
ark
dividend of 2,240 shares, approval
was
also
given to increase the
of
State's
ratification
State
National.
of
Hs
L. I., N. Y., the stockholders voted
a
policy
The
receiving
for
National
Hi
to
holders
N.
H£
Trust
the
,
date
Incident to the plans to increase
the capital
of the Long Island
to
The
less
at
that
on
clusive."
James J.
Previously Assistant Vice-Presi¬
dents, both are in the personal
trust
books
closed
be
ident of the
appointed
the
New
Stewart
invest¬
necessary pro¬
visions have been made. Transfer
25
partment of the Chase Manhattan
Bank
Sep¬
Hs
James
retained.
National
and
Hs
Patrick
25th
on
30th
bank's
the
basis. At the same time,
there
will
be
other
proposals
which will have, the effect of increasing Philadelphia National s
capital
position sio
$75,000,009,
giving the bank -a lending limit of
new
all
de¬
20, to stockholders of record
the close of business Dec.
14.
O'Brien
the
value
same
aiso
cents
per
share on the capital
stock of the
company payable Dec.
Hs
posted
At
Consolidation
At a meeting of the Board of
Directors of The New York Trust
75
be
*
to
to
appointed As¬
#
pany was declared
Ltd.,
share¬
dividend pay¬
the
stood
tional
♦
on
last
market
and
sistant Trust Officer.
dividend
will
s|s
Leigh C. Rhett
Stand¬
Africa
pay
interim
London:
Hainfeld, Jr., President, explained
*
New
Vice-Presidents
of
The
Bank of New York announced on
Dec. 4 by Albert C.
ard
than
to
of
to
next.
tember
at
Vice-President
a
in
British
Warrants
Mr.
National City in 1941
and; an Ex¬
ecutive
Vice-President
in
1952.
re¬
Currency of one
Shilling
per
share
subject
to
income tax at the United King¬
dom standard rate of eight Shill¬
ings and six Pence in the Pound.
1931.
in
29
The
of
South
of
an
in
able
ments
bank's
office
resolved
January
the
Africa
Nov.
on
directors
Behn
Alan H.
head
its
"The
Telegraph
Corp. Mr.
was
South
of
ceipt of the following cablegram
Di-
rectors
Bank
announced
for-one
com-
negotia-
banks, will
achieved through an
exchange
shares, with Caldwell stocK-
be
H.
been
National
shareholders
of
Alan
be
subject
CAPITALIZATIONS
Vice-President
has
the
pansion program, all officers and
personnel of the Caldwell bank
BRANCHES
NEW
As
throughout
CONSOLIDATIONS
NEW
conducting
.
the
stock
Peoples
Mich.,
the
Farmington
Farmington,
mon
of
State
with
$100,000,
nf
of
with
$300,009
Bank
Bank
com¬
and
the
of Belleville,
common
into
Detroit.
State
Mich.,
stock
of
the National Bank
Mich.,
with
common
Volume
184
stock
$26,000,000.
Number
5592
.
.
The Commercial and Financial
Chronicle
.
(2411)
of
was
eiiecteci
and
under
title of the
Detroit.
the
At
The
the
charter
National
the
ing
merger
shares,
effective
date
of
and
million
Bank of
stock
common
to
tion
wiil
its
which
to
add
Oct.
on
1,365,000
nearly
present
$3
capitaliza¬
31
stood
1943
Madras from
had
*
St.
*
*
installment
ment
of
First
Louis
to
•
loan
•
in
snare
for
Sale
permanent* be
into
moved
Bank
Bimson.
Purchase rights for the new issue
will be offered to present stock¬
holders on the basis of. one new
1957.
depart¬
National
of
held Jan.
12
every
the
underwritten
issue
new
by
15,
will
Joins Gerard Jobin
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
DENVER, Colo.—Roger E. Cone
is
The
Wall
tendered
Street
Anchor
dinner
a
on
Securities,
McRae
Club
coln E.
McGovern
headquarters
and
Hugh P. Conway.
309
Colum¬
to
With Louis McClure
(Special to The
McRae, Sr. will make his
the
at
firm's
office
in
on
•1
•
Henry R. Lieb
—
has become associated with Louis
C.
McClure
&
Co.,
617
Madison
Street.
With
' •.
.
Financial Chronicle)
TAMPA, Fla.
.
v
PETERSBURG, Fla.—John
now connected with
Gerard R. Jobin Investments
Ltd.,
242 Beach Drive North.
Lin¬
—
McGovern is Assistant
Delray Beach. Mr. McRae was
quarters at 511 Olive Street* of local and national investment
Treasurer of the Chase Manhattan
Nov. 13, it was announced
formerly in Mainfc.
by houses.
July, 1954, marked the Bank and
a past President of the
William A.
McDonnell, President, last .public offering of Valley Wall
Street Anchor Club.
of- the
bank. "The
Bieder Adds to Staff
department,? Bank stock. Two hundred thou¬
which has been
1
Mr. Conway is Assistant Treas¬
operating at 600 sand shares at $22 each were sold
(Special to The Financial Chronicle)
urer
of the
North Broadway since the
Bankers
Trust
Co.
that
time
and
merger at
brought the
ST.
and past Recording
Of United Bank & Trust
PETERSBURG, Fla. — Carl
Secretary of
Company , total of outstanding VNB shares
the Anchor Club.
into First National Bank on Dec.* to
W. Dorbel has been added to the
1,200,000.
At the same time
30, 1955, now occupies three floors • the annual cash dividend rate was
John J. Boyan of L. F. Roths— staff of Bieder and
Company, 3006
of
the
former
Senate
Building: increased from £0 cents to $1 a child & Co. was Chairman of the Central Avenue.
which has been
dinner.
completely rebuilt share.
Another
60,000
shares
new
ST.
C. Brasher is
Florida
DELRAY BEACH, Fla.
1956, at the Chateau Tav¬
ern, New York City to Edward T.
Mr.
Inc.,
bine Street.
Monday,
Dec. 3,
associated with Intermoun¬
now
tain
Honored at Dinner
syndicate
a
With Intermountain Sees.
1948.
McGovern, Conway
a
$74,000,600 and undivided profits
of $18,265,000.
The
1946
at
$25,402,000. The
action, recom¬
capital of $26,340,-. mended
by "the directors,
was
000 in 2,634,000 shares of common:
made public
opt Nov. 27 by Board
stock, par $10 each, surplus oL Chairman
Walter
R.
-
capacity in India from
1952, and as Governor of
to
the National Bank of
merger
Detroit
similar
a
31
Minneapolis Assoc.
(Special to The Financial Chronicle)
MINNEAPOLIS, Minn.
Dor¬
—
othy H. Olson has joined the staff
of
Minneapolis
Associates,
Inc.,
Rand Tower.
and
modernized.
The move was
were
issued in...January of this
last step in First National's
year in the form of a stock divi¬
floor
dend distributed on the basis of
remodelling program,
and one of the final
projects inv one new share for every 20 held
the
bank's
building
at the
the
main
expansion
modernization project
launched in 1951.
I
and
time.
at
The
dividend, valued
outstanding shares to the
1,260,000 total. As of to¬
day, deposits, it'is stated, are in
excess
of $375 million and out¬
standing loans Aotal more than
present
"
The board of directors of the
Lincoln Bank and Trust
Company
of
Louisville, Ky.,
election
of
announces
Wilbur
T.
Chapin
President, Deroy Scott
the
as
Vice-President and Garnett
Cook, Vice-President and Trust
Officer,
board
as
member
a
of
President, Noel Rush.
*
!;!
Nov.
12
Bank
of
by
dent
the
of
of
First
on
National
C.
Self, Presi¬
Mil's,
Greenwood
Greenwood, S. C.,
Director of
as a
the bank.
*
Oscar
*
*
C.
Bruce, Chairman of
the Executive Committee of the
Republic National Bank of Dallas,
Texas, died following a heart at¬
tack
As
while
office
route
en
Nov.
on
of
home
14.
A
from
native
Wills
capital
became
The
started
life
in
Bank,
1906, and
soon
ant
his
store
entire
banking.
Van
tne
National
drug
spent
in
Zau**
Wills
He
^ouiay
Point,
became
in
Assist¬
an
Cashier,
later serving in the
capacity for the First State
same
of
the
stock
effective
iI
*
Oct.
24.
$1,50^,000 building
new
N.
A.,
will
of"
the
building is
laaho
that
bjmk.
The
new
Driscoll added
week-long
a
house
Mr.
will
the
public
open
held in connection
be
the
network of Bache outlets is under
as well as for the
operations.
Flirs.5
Security will continue to operate
its
Lioise
Jefferson
Ninth
"Street
drive-in
Jefferson
and
maintains
now
Bache's
all
the
at
Streets
From
Cashier
.
1920
to
President
Bank,
he
of
and
of
1940, he
the
Banking operations will
cupy
the
lower
National
November of 1940,
Vice-President of Re¬
public.
In June
elected
a
of
Senior
1952,
he
was
Vice-President,
August of 1954
was
'
and
elected
*}
*
The
Vice-
was
Dallas
was
board
American
of
first
DENVER,
Billings
of
James
of
man
ecutive
as
K.
the
Lochead
*
*:■
Vice-President,
changes
Nov.
%
the
newly
enlarged
Republic
Dallas, Texas,
from
creased
effective
National
capital
of
Bank
of
Nov.
8.
Details
regard¬
ing the increase in the capital by
sto»k
dividend
of
$1,530,000
were given in our issue
of Nov. 8,
a
page
1982.
#
As
of
result of
a
$500,000
Bank
$
cf
a
the
stock
Alamo
dividend
National
San
Antonio, Texas, in¬
creased its capital as of Nov.
19
from $2,500,000 to
$3,000,000.
*
it
B.
cf
Phoenix, Ariz., have rec¬
issuance of an addi¬
ommended
tional
105,000
Their
proposal
shares
will
be
of
stock.
the
139th
GOLDPOlNT,
of
annual
head
Jan. 15.
If
scheduled
Ltd.,
Angelo
December
stocks,
T.
H.
value. The results
Some
have
many
well
one
big
Turning
out,
1920.
performed
so
well, too.
of financial infor¬
masses
a
of
Two With Columbia Sees.
of
G.
the
bank
s
Mr.
career
to
become
Managing Director.
a
Companies, Ltd., and
other companies.
a
number of
has
been
(head
Sir
Archi¬
appointed
a
Di¬
Royal Bank of Can¬
office
Montreal),
announced 'on
Bee.
4.
it
Sir
Archibald
apnroVed, the proposal
for
ada.
recently relinqu'shed
High Commissioner
United Kingdom in Can¬
pest
the
He
and
M.
Silverman
Bernard
become
connected
Securities
:
as
served,? his
country
of the
ers
why it's
so
a
Magazine-a big
Company,
regular reading
a
preview of
in
a
few
important articles subscrib¬
A broad look at the
In An
a
new
on
Big Board:
Impressive Picture there's
analysis of companies listed
The New York Stock
This article includes
ing such facts
DENVER, Colo. — Theodore E.
Ragatz has been added to the staff
of. Colorado
Investment
509 Seventeenth
Co.,
Inc.,
Street.
sales,
as
revenues,
a
Exchange.
table show¬
thoughtful
These
articles represent only a
sample of
the
(Special to The Financial Chronicle)
exchange
Maga¬
zine's wide coverage of investment
activity. Every issue is packed
with information
tives,
top
—
written
corporation
by the
analysts
and
execu¬
financial
writers.
Ideal for Christmas
gift giving:
Think how many of your business
clients
and
other'
friends would appreciate
a
scription of
the exchange
Maga¬
zine!
a
over
With
paid circulation of
125,000, the
azine
costs
sub¬
exchange
only
$1.00
Mag¬
for
Federal Income
scription will be mailed first-class
to
ratios
and will include
employee figures
for
a
revealing
study, the first of its kind.
assure
arrival before Christmas
a
card with your
Do your Christmas
name.
right here!
Fill
shopping
in the coupon
below.
COLORADO SPRINGS, Colo.—
DeWitt Hatcher
has
joined the
staff
Burns
of
Copley
Building.
and
Company,
tb-4
the
Joins
DuLac has
Colo.
Robert
—
exchange
11 Wall
Dempsey-Tegeler
Dempsey-Tegeler & Co., Midland
Savings Bank Building. He was
formerly with Coughlin & Co.
Joins Hornblower Weeks
Magazine, Dept. 7
Street, New York 5, N. Y.
□ I enclose $1 for
E.
become affiliated with
a one-year
□ I enclose $.... for
for
the
names
....
on
subscription for myself.
gift subscriptions at $1 each
attached
Christmas card with each
list.
Please
identifying
NAME.
street & no..
(Special to The Financial Chronicle)
WORCESTER, Mass.
Pikiel is
now
—
Harry J.
with Hornblower &
Weeks, 95 State Street.
13
monthly issues. Your gift sub¬
trial classifications. It's
to Staff
is
economy.
Taxes, dividend payments and
plus
essay
the total assets,
1,071 listed companies in 27 indus¬
Copley Adds
reading in today's dynamic
fiiany investors and
will find for December.
with
With Colo. Inv. Co.
DENVER,
%
G.C.M.C., K.C B, K.B.E.,
rector of The
.
This
"must"
associates,
Raffery
—
(Special to The Financial Chronicle)
]
*
Lieutenant-General
bald Nye,
M.C.,
Francis
have
Fla.
sharer
the
the exchange
reason
invest¬
encourage
stocks.
nation's
habit with
to
high price-times-earnings
editorial trademark
(Special to The Financial Chronicle)
MIAMI,
of
Director
at
fast-reading facts and
an
infallible way to
an
article discloses
why the chemical
reason
tend
ments in
as the
points
listed after
was
which
1000%;
500%. And,
no means
judge stocks. He discusses factors
amazing.
over
Magazine
stocks have
of
by
Exchange,
are
gained
over
exchange
the
first traded
was
figured the current market
brokers. Here's
(Special to The Financial Chronicle)
3 at
rose
Co.,
estab-
investor, Mr. Davis contends it is
each
The New York Stock
The
as
Montreal
he
Investment
While
an
at the time
connected
Columbia
Estaprooks Company,
where
Colorado
Earnings?
lished qualitative measure for the
figures is
become
Price
determined the cost of 100 shares
(Special to The Financial Chronicle)
have
Shelby Collum Davis,
security analyst, asks in
What
mation into
DENVER, Colo. — James W.
Austin, Jack C. Pridey and Hugh
This is what
noted
1956
price-times-earnings is
With Colo. Inv. Co.
Inc., 3839 Biscayne Boulevard.
Director of the Ca¬
nadian National
Railways, Fraser
his
—
Cook,
in-* Montreal.
President and
for
will increase the bank's
outstand¬
Nev.
its
This provocative
Patricola is engaging in a securi¬
ties
business
from
offices
at
Greens Camp.
«
meeting
office
Today, he is
was
meeting
Opens
in
earnings?
exchange
editors selected 15 chemical
every
A. Patricola
mem¬
a
Brenan, began his business
stockholders cf the 43-office
Arizona banking network at an
annual
as
elected
was
Bank
holders held Dec.
ada
fore
Kirk
Company, Ltd., Saint
John, N. B.,
be¬
put
C.
Brenan,-President
Barbour
of
♦*
'
*
Bank
Chair¬
effective
if
Directors of the Valley National
Company, Mile High
the
Why talk about price-times-
the
as
issue. To illustrate this fact, the
have become affiliated with Allen
Investment
8.
R.
E.
with
%
San
.*
pf directors.
became
now
$32,130,000, in¬
$30,000,000, became
A.
handsomely
says
Magazine
Kranitz
the
Chief Ex¬
President and Ransom M.
.*
The
of
as
and
Officer,v Harris
ber of the board
1
K.
Inc., 509 Seventeenth Street.
directors
Board
Senior
civic activities.
Norton
—
Marton
stocks have treated
owners as
chemicals,
and
Center.
Francisco, announces the election
mittee.
for many
Colo.
and
common
their
on
(Special to The Financial Chronicle)
two
*
Trust- Company,
Chairman
of the Executive Com¬
Mr. Bruce also found time
for
Two With Allen Inv.
oc¬
bank.
in
became
and in
1920
that
including
market, on the various com¬
modity markets, in mutual funds,
and complete research services.
Eastland, Texas, and in
elected
large di¬
a
Exchanges, in the over-the-coun¬
Stuart
1919, Mr.
was made Assistant to
the
President of the First State
Bank,
this
in
Boise.
chemical stocks?
Few
organization,
amazing growth of
Street,
in
trading on the New
American and Toronto Stock
with
In
offices
advantages of
facilities
Idaho, Utah and Wyoming.
Wills Point.
57
Wall
Brooklyn branch offers
versified
Bruce
in
36
country and abroad.
floors, and part of the third floor,
of the new building.
First Secu¬
rity operates 63 banking offices in
Bank
at
First
Security Bank,
the
the management of Alexander Da¬
vis. The investment
firm, with its
opening". The six-story,
high building will serve
headquarters" for
bank's
the
the
be
situated at Ninth and
Streets.
of
Exchange, have
opening of an of¬
fice in Brooklyn at 2215 Church
Avenue, just off Flatbush Avenue.
Formerly a branch of Talmage
& Co., the newest addition to the
officially
opened on Dec. J17, according to
J. L. Driscoll, Chairman of the
Board
members
What's behind
Stock
ter
of
the First Security Bank of Boise,
as
father's
Point,
business
$50,000
a
Co.,
York
announced
$425,000, compared with
$275,000 previously. Tne enlarged York,
105-foot
in
sale
and
of
with
Point, Van Zandt County,
Bruce, except for a brief
his
of
the
dividend, the First National Bank
Boulder, Colo., now has a capi¬
of Wills
in
Ari¬
New
&
headquarters
stock,
new
declaration
Mr.
time
major
*'
result " of
a
$100,000
Idaho,
.
28
&
it
if
James
the
Bimson
operates
now
in
communities.
zona
tal
made
was
Greenville, S. C., of the
election
bank
in
*
Announcement
President
The
offices
cf
the former
million,
noted.
the
directors. The foregoing
changes occurred on Nov. 15, fol¬
lowing the death on Nov. 9 of
his
$220
branch
Execu¬
as
tive
Bache
approximately $2 million, in¬
creased
Bache Opens Office
In Brooklyn, New York
CITY.
.zone
state.
include
me as
a
donor.
*
A
The Commercial and Financial Chronicle
(2412)
Continued
from
current
6
page
dependence
tentative
and
dwindling
on
oil
and
coal
looked
re-
sources.
Providing Energy Self-Suificiency
To Permit Economic Survival
.^scarcity.
rCrcond
turn
of reference
let
Now
point
oolitico-economic"
the
the
to
us
—
scheme,
time
or
moral
purposes
The
"politico-economic"
r-eheme
be
can
time
roughly
expressed
the scalar effect of international
■ji
were
to
Needs
principles if
and
to permit these peoples
; we
Politico-Economic
become
hapless victims of So-
viet
imperialist
brutality,
and
hopeless slaves of the Communist
conspiracy. Nevertheless, the Free
five
about
now—be-
years
tional
energy
ginning with the knowledge that
there might be sufficient uranium
Western
dilemma.
Indeed,
industrial
West
far
as
the
as
concerned, the
politico-economic time table is far
than
serious
more
the
geological,
much of the available
because
the
in
resources
Middle
oil
and
East
,vnd economically unstable.
This
to-called "neutralist" group of na-
lions
is currently
being subjected
to mounting Soviet economic and
political pressure.
Should their
vast, unrealized human and physi
al
fall
resources
I UoUUI Lta
Cctl
trol
of
Oi
UUUCI
under
i.rtll
of
influence
or
the
me
World
wunu,
Free
r ice
pect that
they
U1C
the
the
enemies
exu
would impound a
tho
xxmrirTc
of the world's
Lhef,nii,i portion
nibstantial.
conventional energy supplies. Such
development,
a
i
would, of course,
drastically our particular
time scheme.
educe
energy
It
is
■
possible to describe, but.
imagine,
the
hardships
to
rot
which
would
course
of
result
from
such
a
events.
Western
reckoned as permanent, but because of the rampant nationalism
°* t,1e Middle East which almost
certainly within five years will
either forcibly cut off the oil sup-
economic survival.
of
programs
ficiency is the prime condition of
of
nuclear
In
military
again
sion which
jH
forums
in
Canada, and
this
*he West entered into
country,
in Japan,
the
on
the
ot
one
59th
alliance
defensive
a
against
aggres-
designed to enlist
was
the combined power of all
nations
the
of
alliance
protection of each i
member-nation.
15
free
is
the
nations,
North
n
d i
This
as
of the
the
for
i d
v
all
you
1
u a
of
alliance
know,
Atlantic
ganization.
Congress of American Industry of the National Association of Manufacturers, I proposed—as a first step
towards
achieving this cultural and economic
goal—a specific 100-year
Treaty OrNATO has provided all
of
Annual
a
with
us
of
measure
military
security and has fortunately, in
addition, been a strong economic
integrating force. Successful operation
0
J®
hfrhmL
£ SgAf^
of
has
NATO
influenced
would
rntions
nations
.
,
.
fh_
Middle
beclu^e atomic research reactors
c,.er-aeveloped, natl.ons
because
r.T*u/>f
nr
of nationalism
hie;
East
rm»w>
nnu;
has
m
gone
now
jl-onli i^ed coloniaTism
Five-Year
What
Lead
fortunate,
of
through "Euratom"
Energy Community
and small
x-
i
~
scheme?"
and
If
inevitable.
Yet
raise
the
are
we
diplomacy
our
readv
f
ment,
allocated
T 7,
j
bv
y
a
is
in
ever
the
Latin
and
.
hv
^
•
u
,also
<
T.
European-
known
as
the
exemplifies
—..f.
in
period
over
a
pcsed
bnd
25
Asia, Africa, IsI urged
categories
Atomic
of
Rnoruv
it
now
to
seems
ganization
over
development"
the
a sin
of its member
sources
me,
must
nations,
similar
a
the economic
so,
or-
NATO-
mutual
of
niques
cooperation.
•
lists
and
and
much
so
the
since
Yet,
is
crisis
energy
time
same
programs
all.
of
en-
resources
the
current
much broader
significant than
so
more
the localized crisis at Berlin which
brought
into
NATO
■
UNATOM
existence,ultimately re-
would
quire greater resources,
greater
capabilities than presently exist
within
the
should
the
be
NATO
Nor
program.
of UNATOM
purposes
explicitly defined.as those of
NATO, nor its intent so specialso
ized.
what
it
as
visualize
I
alliance
flexible
is
generally
the
of
providing
at
is
free
a
na-
rapidly
a
woridwide equalization of energy
wouid
Specifically, UNATOM
expedite not. onlv nuclear
power
development,
res0urces.
but
advance
nuclear science and technology so
tjiat
lUai
aii
ail
member
mt'IllUVr
tbe shortest
cner£v
nations
IiaiJUIlt,
might
IIU'.'IH
in
III
of time achieve
sn^ce
self-sufficiency—and hence
political
economic
,
T
arm neiice
independence
independence
.
^
.
„
that
provides.'
,
,
,
\ eir>Phaslze science and technolofX because these are theprin-
<;ir?al instrumenta lties which can
point of view,
?lear -DO'ver applications Certain-
us
bring a needful flexibility to
situation
of
is
1956
far more critical to the continued
a
the -15
Second,
-
with
provide
enFromSfsUtratyegic
security of the Western World .than
fnm.
a
to
Third, the NATO type of organization preserves national sover-
the
.
seeuritv
cmorirv
In
years.
.
provided military
security through the combined re-
Tokyo,
year and a half ago, I proas a possible specific sec-
step,
fVpp
four
of
.
As NATO has
America,
logical and
the urgent
international problems within its
difficulties, to be
realistic approach
energy six suixiLicncy
NATO
y WA1U-
implantation of atomic "seed"
reactors
a
govern-
our
repayment basis.
To
living and cultural standards
on
in Asia, Southeast
realistic, I believe we may eke
a
five-year postponement of
(he
x
racl
Time?
then, is the "politico-ecotime
Organization
assist tne in- Economic Cooperation — OEEC.
dustrialization of the worlds un- The proposed European Atomic
too far for any reversion to
nojrdc
the
of
of suonres
a1^lc P?wer 1 oactors, financed philosophy of workable internatactics of suppres- by American dollars in part al- tional cooperation first advanced
cause
Mirinin
the
much
and
tnotics
thoso
•
The
nm
not,
no,,j„
,
government
ft American industry
v
Wor d
Woild
African
NATO has proven, despite recent
eignty, but at the
1946, certain free nations of
development. During this
period, I have spoken again and
at
threefold. First, and foremost, i
are
member nations, at least would be*
eating the immediate adoption
world-wide
Thursday, December 6, 1956
.
familiar with already proven tech-
It is therefore abundantly clear
that for the West energy self-suf-
energy
.
sphere.
-
period when general discussion of
this important development was
non-existent—I have been advo-
tbat
cut
Europe,
World.
"f n^nt aiid Amencan industry, of the European Coal and Steel
WoSi^d and Sot I suggested then-two years ago— Community, and in the formation
CUIIcon-
could
louiu
we
we
aggression which must be
nomic
necessary
reactor de-
.
Barring
is
a
own
Review OEEC and NATO
upon conven-
reserves.
providing
velopment, they must now look to
the
economic
survival
of
the
World must take immediate and coming "Atomic Revolution"; on
radical steps toward becoming in- massive atomic creation versus
war, such political
unrest has a dependent of Middle Eastern oil. massive atomic destruction; and
qualitative, but no less meaningThis is imperative, not only be- on "Atoms for Peace." In DecernSal, impact on the overall energy cause of Soviet military and eco- ber of 1954, for instance, to the
•j-olitics and tensions
ai\atomic foreign aid
as
stimulus to their
for limitless peaceful applications
of nuclear fission and
during the
other vital resources, we
indeed, be flouting all
for oil
would,
For
to
program
.
the military situation of 1948.
In-
nu-
^r mucb more advanced reactor
al1d P°wer plant designs must and
will be forthcoming in tie electric
power field. And these develop-.
x
x
through scientific and
advances
world
u5%
Western
of
igum
needs,
Larrels
a
Europe
or
over
year, is
petro-
s
billion
one
supplied by this
enlightened
into
war.
Many of
tions.
most distinguished
our
apparently deepening despair
iroubled area. More than 30% ol
y^h respect to current efforts to
Western Europe s total economy is
keep peace. The specter of atomicpowered by oil, and consumption
hydrogen war is, perhaps, for the
>s
increasing at the rate of 10%
present the only sure means of
year. Any substantial strankeeping an armed peace because
filiation ot of speedy would, by
this flow
me threat
collapse
Western
Europe
pel
ol
Western
the
s
economy,
com-
Hemisphere to
the difference. How long
make up
could the
United
States and Latin
America afford to export close to
billion
one
of
cess
barrels
present
a
in
year,
ex-
t
without
exports,
exceed,nslv violent eeonom.e eonexceedingly violent economic con
.cquences?
n
•
.
hi-11.
i-
x
c-x
x.
Assessing Middle East Situation
We must, it
to me, assess
seems
realistically the political and
>md, indeed,
j.st
eco-
situation in the Middle East
stomic
the entire "neutral-
in
Soce
to
up
-■present
J
«nd
fact
adequate
by
under
conditions
energy,
has induced in
the
and
economic
the
able
to
extreme
dislocations,
necessary to review
lengthy
events
vted
world
social
hardly
you
com-
widespread povert^,
paired and of
lears
ims
area
It is
must
we
that
°t effective leadership
of
PPUHded
Sor
that
say
the
Uast
tions.
Yet
and
of
restraint
with
JiOmic
Asian
i£?ns.e
rhis ls
not to
indolently
Free
of
with
areas,
part,
coupled
of
a
eco-
these
mature
into
may
rational
re-
world environment.
imply that
permit
political
■j^Su and
fi the
4>cnt
our
programs
eventually
nations
void
must
one
With
so
we
Russia
of
the
must
to
fill
Middle
many
peace
tional
forces
must be precarious,
I do not believe that
our
present peace can withstand
much longer such volcanic politi-
Therefore,
ca} disturbances
endured
It
in
seems
that
first
as
the
to
despite
danger in
two
months,
almost inoredihlp
the
the
the world has
past
me
characterize
to
easing
seems
forewarnings
Middle
East
of
which
reluctance
power for fear of
of
these
and final step: The creation
na-
of
Community"
a
to
be underwritten bv all the nations
the
an
world.
ail
The
the nations of
organization
would
such
of
purpose
be
to
put
dynamic
-
Program utilizing principally the
forces
of
atomic
fission
and
ap-
later atomic fusion, to balance in
turings of Mossadegh in Iran
that
a
the Free
tinued
the
World
to
hope
for
a
solar
solution
by
political
situation
deteriorated
Western nations still did not grasp
energy,
perhaps
and
master concept the world's
have'con- nomic
should
needs
with
the
eco-
world's
the price of ultimate slavery
been
taken
—
steps might have
actions that would
of Western
Europe and
pos-
ent.
Such
programs
might
have Instilled immediately
sufhaps brought a semblance of san-ificient
hope
for
a
better
life
ity to would-be aggressors.
The among the peoples of the Middle
"politico- economic time table"— East and Southeast Asia, so that
per-
the Free World's Procrustean bed
their leaders would not have been
—might
impelled to adopt belligerency as
national policy. Such programs, in
my
opinion,
might
well
have
have
and in such
been
lengthened,
period of relief our
perhaps put at
least on the road to its one and
only solution.
I
a
problem
energy
refer, of
massive
Fiee World program of nuclear
energy development not only for
power
course,
ease
a
but for all those additional
applications which
the Middle East
to
are
technically
and which will be
before
nuclear
neces-
power
may
significantly the Free World's
thwarted
economic
the
threatened
Soviet
imperialism at its
very
beginning.
capabilities of
js at stake,
'
During the past few weeks, we
seen
in
the
most
graphic
form possible, how a few hours
have
imaginative atomic aid to underdeveloped nations must give way
to
still
tions.
more
practical
Where,
before
ufe blood of 350 million peop e
therefore
be solved now by a massive
cooperative effort on the part of
Free
World
industrialists who
can
to
speed
the
under
—
the road blocks to international nuclear development. But
awav
nro
Suez
Crisis, the free nations of Europe
and
the Americans
might have
and
must
im¬
A
mediate urgency of individual and
national survival
to make the
New
World
proof
Soviet
against
The world
seems
of
I propose that we begin, now,
to make the Free World independ-
As
the
Berlin
Blockade
into
NATO
into
an
even
program
of
positive,
the
16th
the
of
7ens
to the
science
Gf
non-Sovi'et
thp>
political
military
trialists
and
men
of
leaders!
the
action he taken
world
to the
religion
and
to
Free
now
the
indus-
World
that
to form
not
a
military
new
a
new
or political alliance
economic alliance, an
Atomic Alliance, a "United Atomic
Treatv
Organization"—UNATOM.
"
Proposes UNATOM
An
organization such
should be modeled
UNATOM
general upon NATO.
force
a
southeastern
of
Eu-
Western
Christendom
of
and,
indeed,
civilization
Western
dpadiv
n0rii
of
the
was
armed
all
in
might
0f the ancient Ottoman empire.
w-fVl-
+h
t
'
t
h
finps
Witnm tne constrictea c n
the West, tne agrarian teuaawhich
liad
governed
there for 600 years was
away
society
crumbling
under the combined impetus
,
men
to
the
all
Then,
and^' vitalfty^had
m;ijtarv colossus blocked
lsm
"
power'
Europe's sudpIv routes to the East.
cooperative
therefore, to the citi-
century.
of"great
intensive
more
action.
i j3ropose,
social and
ferment similar to that
Western Europe at the dawn of
trig-
existence,
Suez:.Blockade must. I sumbit,
drive the Free World into an even
more cohesive economic alliance
and
again to be in
state of intellectual
a
political
economic agression.
gered
soon
Age of Discovery
—
Free
considera-
the
of science and
men
^t^tpplvin^^Xttrfai SelnfluL^heT^—d cTear
but
Nov/, much of the initiative for
near
industry. Some may well require
scientific "break throughs. "Others
the world itself
mv
Europe economy
—
well
very
F.irnrm
lsm> to strangle industrial Europe
and ultimately the Americas.
in view of our own disappointing failure to win completely
the hearts of other nations, the
urgency is now even more appar-
the
sequent stifling of the entire West
the moral values of entire peoples
through material assistance — at
and
within
about
come
future under pressure of sheer eco...
—
nomic necessity and the proven
xuiu,vu.,uv.
ent of those Mid-East oil resources ove°run
utter economic dependence upon
the stability of such an unstable
Positive
advances in nuclear power, transportation, communication, medi¬
cine, agriculture and biology will
means to fill those needs.
the over-all implications of their
area.
con-
possible
purpose,.-multi
pos-
with
Petroleum Blockade—and the
„
a
multi
sinister
ago
Blockades
1 should like, thereloie, to pro
pose that we begin, now, with all
Plied
apparent
Petroleum
and
into effect by the united governments of the world a multilateral,
-
of
the
Now, with the 1Jluut,ulIUiJ WA
(V1U1
probability of
"strings attached"
attached
of the world for
to
nuiV)
at Phoenix, Arizona,
in November of last year, a third
Energy
sphere
merelv to the immediate tac-
Berlin
con-
—I proposed
"World
economic
tical situation.
attempts to develop atomic power
potentials for the "have not" na-
tions of the world—and the
the
me,
American
five
sary
often
over
became
indepen-
were
na-
brush fires burning, any
that is .based on conven-
angry
^ou^eas^ Asia. Even feasible
World
Asia and
here
all
ture
improvement,
peoples
.table
the
on
even
"perhaps."
Say
and
men
contrib-
other
dynamic
all
have made unmistakable the
Suffice it to say that only
through
jvatient understanding and uniJsu'o\
for
sure
lament-
xenophobia, and innationalism, of the Middle
tense
in
tions to accept the boon of atomic
and
and
the
assist
compelling fear of death, certain
have
which
to
the political rigidity which
sequent
years
international
effort
an
its total destructiveness enlists the
area.
First, I would
Need Is More Urgent
In
an
..through
Free World governments and inBerlin Blockade in
the military oustrialists,
be accelerated
far
sphere.
In
11448,
however,
the beyond current or prelected prostakes were limited, it seems to grams. I am confident that these
in
ancj articulate leaders have voiced
and
cooperation
,0nHLaserfs^ref0
mdiviauaiism. ixanaie.s seris, rer
"5e.es-
y.
f™'11
^a^f,
,
in
My reasons
,nxS ?
'
ra,mtJwtdJ^°nd
.
.
.
n
,
w
,.iHp,
nis.
j^rni/'worp
la™1110 a a
-Pc
everywhere prevalent,
case>
Yet, in
as
.
their ancient rights forfeit by the
e n cl os u re movement resulting.
Italy,
an
incredible in-
tellectual and artistic revolution
Renaissance of the Spirit of
—a
Man—was already beginning. The
for
tools
5592
Number
184
Volume
millenial
a
.
The Commercial and Financial Chronicle
.
.
in
advance
being
prepared.
And within 50 years'
time this rebirth—the Age of Dis¬
covery— succeeded the darkest
period of Western European his¬
thought
action
and
tory.
Age
of
Renaissance
pletely
Discovery
of
the
altered
the
—
Spirit—com¬
world civilization. Eor without the
scientific
of the
advances
technical
and
Renaissance
astronomy,
—
navigation, shipbuilding, printing,
As
terests
backing the British
the scientific
both
the philo¬
and
vitally affected." But
were
clined to the
and
"pointjjf no return,"
Americas
our!
might
never
have been.
*
I
think
this
that
of
age
World
we
epitomize
may
Man—this
of
of
discovery
the
and
the
remark¬
able conquest of the forces of de¬
struction
-—as
by the forces of creation
triumph
a
of
Spirit,
the
individual courage, and
ship inspired by
worlds
a
their
and
fitting out, the manning
suddenly find that
sending
the
forth
far
Galileo
globe;
the
men
like
of
Copernicus; the voy¬
Prince
the
gator;
the
questing
and
of
ages
of
corners
individual
to
the Navi¬
Henry
daring
of
Columbus,
Cabot, Grenville and hundreds of
others;
all manifestations of
were
the
tireless
the
human
of
bonds
intellectual
mind
tradition
interdiction
the
because he
rest
this
powerful
than
16th
more
century's
enemy
Ottoman
Empire stands at the gates of Vi¬
enna.
Christendom
again is in
deadly peril not before the Cres¬
cent, but before the Hammer and
Sickle.
The world is crying out
in anguish for a new un¬
derstanding, a new leadership.
And again there is burgeoning
again
revolution
intellectual
an
credible magnitude, far
would
We
aissance.
of
greater, I
possessed, now,
are
tools and
new
in¬
of
than that of the Ren¬
say,
stemming
techniques,
of
new
the
from
advance
modern
science, that are aweinspiring in their capabilities. And
the spirit of the times—the 'de¬
velopment
of
and
new
a
like
fit
to
mer¬
con¬
out
the
scientific expeditions of this Atom-r
ic Age: Argosies to explore, in ex¬
pectation of fabulous reward, the
sub-atomic and astronomic worlds.
In the
exploration of this Universe
the
lies
promise
infinitely
herein
and
ery;
solution
nent
of another
lies
of
and
of Discov¬
greater Age
the
world
perma¬
economic
and
political problems.
one can say whether UNATOM,
if
tried,.,would. ^gc,eed.
No
I
But
that
contend
in
face
great, and time
must
sources
I,
one,
re¬
of
an
enough
am
fail.
Enough
of
we
of
realist
a
a
we
we
to
cannot
pessimist
dare not fail.
believe
to
Enough
in
the
triumph of moral principle, of in¬
dividual courage, of the coopera¬
tion of free
men
I
have
the
good
For
that
under God.
certain
and
prevail—for
only
the
the
true
good
must
real.
true
are
SAN
FRANCISCO, Calif.—Louis
sel Investment
ket
with
apportion their
according to
some
•
and adjust
resources
their interests
formula not yet devised.
interests
THE
Best
to be critical of this unnamed British
him
for
the
that
reason
SOLUTION
we
many
'round the
TO YOUR
if not
world.
in
that
the
former
nationalism
is very
peoples
colonial
capitals of the
imperial
is
the
not
idealistic
GIFT
toward
some
equally. It is
Give
a
a
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chiefly upon this rock that efforts to build
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rock that the United
Nations is in danger of being
wrecked at this moment. It is this fact which has always
rendered the notion of a United States of Europe no more
than
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dream
will
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'★
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to
be
And
it
eliminated
is
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at
fact
the
which
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Every Thursday, The Commercial and Financial
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are
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Balance of Power
the
Of course, the "balance of power" theory which is
supposed to have served the world well for a long span
of years is based upon and makes use of this very same
nationalism. Countries with identical, similar or at least
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non-conflicting interests band together in a sort of mutual
protective relationship. When such groups are roughly
equal in strength, or too nearly so for any of them to wish
to
precipitate trouble, the world tends to stay at peace—
so it used to be
thought. But now the United Nations
undertakes
and
those
upon
United
band
to
with
all
together, those with conflicting
interests as well, and pins its
means whereby these conflicting
some
ambitions
States with
peace
no
can
he
reconciled—and
it
is
the
particular interest except that of
which thinks of itself
as
the leader in
the movement.
Of
course
there
are
more
sophisticated views of the
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sort of Utopia where all will
rigorous, competitive nationalism
which must of necessity give rise to
conflicting hopes,
ambitions and purposes among the nations of the world.
be served
interests
Four
mean
We
but
governors,
or
knowledge
the
It is
way.
•
:
so
short, that
atomic
•
have been said on the subject and \
be said about it, it is not easy to envisage a time when great nations, "advanced nations," .1
backward peoples (particularly when they own coveted
:
we
is
our
optimist to know that
state that
crisis
energy
die.
or
for
so
pool
now
the
to
respect
:
whatever" may
whatever may now
Nationalism is far from dead. On the contrary it
much alive, and not only
among the backward
who now insist upon independence from former
past,
hesitate
not
for
the citizens of other countries
own
industrialists,
predecessors, the
adventurers, will, I am
protected in this
countrymen, and for that matter of
most of
the
their famed
chant
fellow
our
have, also.
been a good deal of talk about
"an instrument of national policy,"
course,
as
•
suspect that he is at heart quite typical of most of his
who
World
fident
We do not
We
we
and
country.
commentator.
understanding
an
has, of
Typical
multi-dimensional
of
Universe—that
Free
own
looks
dangerous
and
the
alliance, the United Nations and all
thought British interests around the
served
useful instruments
of his
which
vastly
a
There
it fol"
use
implicit in his outburst that he- expects the
British to be permitted to judge when their interests are
being served. In plain language he is a nationalist to the
core. He
is interested in international organizations and
international dealings when and only when he finds them
And
and
we
likewise
military
its way
and
winning
hour
world would be
world.
geographical
physical unknown.
At
of
same
thing
handing that part of the world over to Russia which
has long wanted to
get a good hold of it. And so we are
back to very nearly where we stood half a
century ago.
'
gentleman, plainly, has been in favor of NATO,
the
richer
the
into
and
vigor
bursting
allowed to
Kremlin, and that to
would be about the
over
as
renouncing force
the British-American
The
the
even
made
hut
The
of
expeditions
of
aren't
we
stuff, when
is
there will be chaos." He might 1
strongly suspect, he was thinking,;
as we
permit chaos to take
he wonders why
now
added,
the United Nations
or
or
that chaos is made to order for the
in¬
ourselves."
new
and
our
countrymen "should go on pouring out millions
of leader¬
vision of
potentials.
pinch when
a
for all this defense effort and this NATO
sophic thought of that remarkable
age—Europe might well have de¬
"in
up
well have
33
in -the Middle East. Either Britain
courses
strong enough to do it,
It
We
See
he and his
and
the temporal, romantic spirit
of the conquistador and the mer¬
chant /adventurer .who
applied
three
are
polices the Middle East,
of
the> pattern
.
"there
Continued from first page
were
upon us
The
(2413)
Britain is
quoted by Mr. Cook to the effect that
i
|To
«
Address
H
City
^
State
«
^
8
Mention that this is a Gift from
••••
^
I
®
|
34
The Commercial and Financial Chronicle
(2414)
The Business of Banks Is Lending
page.12
Continued from
Banks
traffic
Municipal Bond Market
And Rising Money Rate
The
to
answer
They sell at yields not
treasurers.
at
salable
and
time,
any
investment lor tax
ideal
an
are
U.
reserves
be neded
It
prefer bills to any longer
maturity giving a comparable re¬
turn
and
every
Monday finds
The
pUrchtfse
every
which
week
believe that
any
purchase by the
Open Market Committee may pre¬
dict
a
policy change to easier
has led others to buy bills
and so to
money
whenever the Fed. does
their
keep their price higher and
yield lower than seems consistent
with the yields of slightly longer
government securities.
Opportunities
Investor
flattening
of
the
yield
of tax-exempts has been a
The
curve
continuing source of difficulty for
municipal bond dealers but it has
investors opportunities to
offered
a
earn
minimum
the
with
come
of their capital
in¬
tax-exempt
generous
risk
of
funds.
uniform.
Many
without
the
of borrowing are
local governments
perform
their
functions
forms
cannot
but
getting,
for
money
they need it,
schools, streets,
as
extensions
water
other
the
and
capital improvements made neces¬
by their growing populations.
In
this period of costly
money
they are paying more dearly than
sary
Rent of
course
is not
tax
deduction but
ing
a
a
an
income
veteran
buy¬
home
of his
can deduct the portion
monthly payment which is
interest.
Instalment buyers are making
optional purchases. If they don't
mind paying up to 14% interest,
no
is
going to worry much—
except the Federal Reserve Board.
one
For
long
sell
corporations, paying around
50% Federal income tax
on prof¬
its, the stated rate of interest is
in effect only half as
great. And
the
banks
for
The
whole
intense
tax-exempt
Corporate
in
Increase
in
Increase in
Increase
bonds....!!
consumer
loans
mem.
fege and
WTffjnnt""
it
instalment-borrowing.
deter^Jaowuawipg only by
can
^nd
meriting
Its purpose,
of five
have raised their rates to discour¬
from borrowing from
And they have done what
banks
age
them.
1954, just before the
policy of restraint was begun, the
average of daily figures showed
that
credit
Reserve
Federal
$37,677,000,000
they held
of gov¬
ernment securities.
When
before
was
down to
At
the
the
1956
if it merely
investment for an-
one
other, but the result is quite difBy sending the cash to
the Federal Reserve
the
bank
The
securities
ceeds
When
the
loans^
assets
ot
bank
the
sale
assets
are
additional
are
by a similar amount
oy a similar amount
which
are
liability
a
of
reserve
a
This
Reserve.
use
of the cash pro-
only, for Nov. 17, 1954
1956, it appears that:
bonds
the ratios between certain
of
their
assets
and
liabilities
which the banks themselves, bank
examiners, and the Federal Re-
of
banks
of
the
Bulletin)
having sold securities, a
large portion of them short term
loans
while
until
increasing
being
rather unsuccessful in selling additional shares of their stock.
and,
..
Th
recently,
2QC/
f
*
couldn't go
^
s
g loans,
Other ratios involve the defini-
tion of riskless assets.
Bank
Respected
Ratios
ing the past two
years
have weakAll
1954
Total
( 7 months)
Commercial
Cash
N
$155,377
2.688 Dec. 30
3.024 Oct. 15
2.37%-2.63%
2.42%-2.96%*
Risk
56.620
106.723
assets
•
adjusted, "All Banks" and
1954
1955
currency
outside banks)
$129,700,000,000
133,300,000,000
est. 134,500,000,000
Federal Reserve Credit
$25,708,000,000
*27,420,000,000
25,593,000,000
all
as
have—perhaps in a gentle
"rolling
readjustment."
When
buying and building decline, there
will be less demand for loans and
interest
rates
a
is
terest
no
will
lower.
be
But
its
own
bank
more
more
ratio
have
an
a
For
there
then
is
the
ratio
of
capital funds which
conservative bank likes to
around
six
to
keep
one.
.
,
All these ideal ratios have been
increasing strain during the
past two years. And for that reafrom
now on
the Federal Re-
policy of credit restraint, if
continued, will be
Without
trality
money
anything
on
more
more
The
effective,
than
neu-
the part of the Reserve,
will be less readily
three
expansion
of
obstacles
bank
low rates
very
The Longer View
rates
avail-
to
further
loans
were
discussed by Dr. Jules I. Bogen in
"Journal
is
(i)
Decline
legal
in 'hank
Governments
over
pared
with
more
years
ago,
and
investments
ments
20%
now
1946:
other
than
falling
interest
1921: rising interest
or
not
two
and
Govern-
(risk assets) have increased
but capital funds only
about
10%. He concludes: "All three of
these factors will make it difficult
r
.
rising interest rates with
From
the
.beginning to the end
of
these
each
of
rates
periods
interest
fluctuated
widely
but in
general did not go back to where
they were at the beginning.
Records
for
the
history
and
of
ring
basic
of
Europe
or
our
does
of
is
reason
many
would-be borrowers to
country
show
obtain the loans they seek at the
banks,
even
at
rates, in the
higher interest
that
of
seldom
more
absence
of
a
modi-
fication of Federal Reserve policy
or
a
contraction
for funds."
interest
.
.
rates
.
in
the
demand
"A further rise in
on
bank
loans
is
years
possibly it takes about
and
It
to
is
of
to
actually
the
effects
inflation
all
the
the
central
war.
gen¬
the
ex¬
deflation.
these
changes
a
emotional
of
or
Federal
than
major
a
reverse
customary
attribute
rates
without
material
tremes
and
Perhaps the
there
30
eration
recur¬
prosperity
period
a
but
years,
own
depression.
been
has
distant
more
swings
slump
mea-^
increasingly
are
gre
Or
for
a
period of artificially low rates
in war years and later years.
,
com-
than 69%
that loans
alernations—
possibly 1902:
or
falling interest rates
interrupted by very high rates
during the stock boom.
reserves.
are
say
1921-1946:
of
limiiditv
of deposits
50%
would
subject
rates.
He points out that member
banks have been borrowing from
the Federal Reserve to keep up
their excess reserves, that cash
arid
the
1900-1920
^ ^ Decline in bank liqu dity.
(3), The falling ratio of capital
funds to risk assets,
much
a
Very likely those who have
rates.
14.9%
Commerce"
of
a
in
generally
46.6%
He listed them as-
shortage
in
been
a
move
1865-1870-1898
15.927
of
have
have observed these
186.326
20.7%
Oct. 16, 1956.
ex-
year.
And
the
rigid in some reliberal
in
others,
ample, a very conservative bank
may consider that its riskless assets consist only of cash and Government and tax-exempt securities both running not more than
bonds.
the
that
financial
history
will not
necessarily repeat itself. But they
51.8%
26.4%
may
to
they
fall, muncipial bond
prices probably will begin to rise.
86.837
38.057
liquidity
that
assurance
rates
word.
99.064
31.3%
loans
able and rates may go higher.
(Average Daily)
inflation,
Perhaps theory is too dogmatic
106.648
43.654
% Risk assets to total assets
Total
serve
Supply
unbridled
booms
rates
42.444
69.221
Total riskless
son,
Money
to
us
agencies
presenet boom will end
discussed
under
1.175 Dec. 27
the
various
and
Government
theory that interest
long, somewhat ir¬
regular cycles of 20 to 30 years.
$205,712
37.502
Why Money May Be Tighter
2.26%-2.54%
commit
Congress
There
June 30/50
assets
risk aSsets to
1956
just too
could
boy
generally rising trend since 1946,
but it may be historically inaccu¬
rate to speak of them as "high."
Banks
U. S. Government Securities
one
Discount Rate
be
school
Tide Will Turn
The
Interest
Assets
than the theoretical ratio.
( 9 months)
would
if any
predict prices.
son.
(in billion of dollars)
spects,
issues of tax-exempt
1955
ex¬
Dec. 31/47
For
(10 months)
business
boring
October, 1956, page 1085, provides the figures for this compari-
(Based on Gross Assets)
standard
new
rities
0f
The operations of the banks dur-
increase.
,
to
few years ago. Whenever in¬
% Capital accounts to risk assets____
( 6 months)
what
But, during periods of
comparative stability
of money
rates, variations in the demandsupply ratio have kept bond prices
bobbing up and down. The secu¬
expect.
very
( 7 months)
about
every¬
return
sidering the great activity of the
(11 months)
know
Then
will
a
10.059
( 9 Months)
desirable.
would
one
either
to be
rates,
might seem
low,
or
most
of
sides of
This simple
144.103'
$3,221,000
5,003,135
6,288,000
7,800,000
1,552,000
3,442,000
6,013,000
the
reserves
th
"s "
J*,7°
of
power
in&rest
Steady
high
powerful
et
themselves
especially if
the dollar
market,
j
is decreasing rapidly.
banks in New York and Chicago.
^ *s *ess *n °^er Par^s °f the
country.) And of course banks
mana^e always to have a margin
f
% Loans to deposits
Capital accounts
1956
the
Unless
$134,500,000,000 (estimated). Con¬
was a
buying
ing accounts) 1S mandatory witn
liquid
price
can
of
the
ipe ratio oi zu /0 reserves
Total gross deposits
intervening period this
else
out
that anything is "riskless" except cash and Government securi¬
money
it
thing
?fmst de™n<? deP°3lt? <chet*-
was
$14,536,000
5,900,877*
10,240,000
16,200,000
6,356,000
7,348,000
14,440,000
a
factory to local governments
needing to borrow, and to dealers.
But
municipal bonds like any¬
ex-
January it
1954
1955
as
group
governments,
yield more than A
in early July this year.
single bank, not for
the banking system.
ample is for
the
both
sheet.
balance
(the latest figure in the Fed¬
small
There
is no thought that the strength
of the banks has been impaired,
merely that they are less well
padded than formerly. The change
from
funds.
Today
bought for what
be
Falling money rates and rising
prices are of course highly satis¬
ened
resulted
and
now
bonds did
^
desirable.
their
in¬
profits
Baa bonds cost four years ago. By
their "Moody's" averages Aaa
11,698,000,000
consider
taken
can
stock
private
many
have
Aaa bonds
3,
687,000,000
serve
that
there
enlarges
„
1955
favorites
aminers, hard hearted guardians
of our deposits, will not admit
ceeds
somewhere
"High for period.
Oct.
20%
3
October 3, 1956
transferred
and
carried with the Federal
must be
2V?
„
ber banks
last New Year's
Indicators
nro-
agreements
deposits which
against
cash
makes
loan
offset
onset
the
Reserve
$27,420,000,000 to
end
Reserve
17, 1954
31, 1955..
3, 1956
1954
vestors
can,
and
their
from
October
November 17,
December 28,
ly seen, those for reporting mem-
additional
as
theoretically, lend five times that amount.
reserve
$129,700,000,000. On July 25,
eral
seem as
make
to
ferent.
supply (demand deposits adjusted
and
currency
outside of banks)
was
securities
sells
proceeds
might
exchanged
$25,480,000,000 again.
end
the
Federal
over
but
bank
a
uses
a
31,
December 31,
July 25, 1956
much better than that from
has
1 V2%
December
past two years?
Using the figures most frequent-
ties. The Federal Reserve Bulletin
3, 1956 Federal Reserve
credit was $25,593,000,000, the dis¬
count rate 3%, member bank bor¬
rowings $902,000,000 and member
bank holding of governments only
help banks
of their
times the amount
On Oct.
$25,979,000,000.
deposits
have
reserves.
was
$25,708,000,000. The discount rate
was
l1/2%.
Member Banks were
borrowing only $86,000,000, and
New
can
the
obtain reYork and
they
(in
they
December
(Demand deposits seasonally
about $293 millions,
Where did the banks get all the
money they have lent during the
* 902,000,000
from
borrow
Reserve
November
Active
had to be found for the
maturities, and the effort
fairly successful. For the
past year the tax equivalent yield
of municipal bonds has been so
short
serves was
the Federal Reserve
different.
and
Chicago)
demanding more goods than are
being produced. The objective is
to prevent inflation which eventu¬
ally results in deflation.
The
Federal
Reserve
banks
New York Federal Reserve
Rate.
of buyers
re-
varying from day to day—on Oct. 3,
banks
Federal
loans it
than 8% of total of this column.
In 1955 the increase in consumer debt was
greater than the total of
Buyer's Average
"'Through Oct. 19.
of
has been
other securities
banks
are
and
*Less
B'll
deficiency
prioes of the past year;
high money rates, have
many
investors
who
to
previously found tax-exempt
yields too low. Whole new groups
$12,295,000,000
only as compiled
Wednesday. Those for all
banks
state3~matty timies^ is to curb bor¬
5 099 000
Bend
net
increased
These figures are for reporting
serves
scarcefHtireveryorie.
l'l26,000
banks
The low
due
interested
t
When
1,049,000
representing
"all banks"
bor-
to
their
high;
borrowers want them low.
borrowing from it. On Nov. 17,
1954 they had net excess reserves
of about $812 millions; on Oct. 3,
1956
high
low? Lenders want them
or
them to increase their
1956—daily average
poweZ^4fr-Tegu4ftte..jmort-
if
former
12,500,000
debt
loans
to
amounts,
desire
have sold
amounts
'
each
9^516^000
mortgages............
come
Banks have borrowed from
be
$12,593,000
6,810,758
financing
Increase
have
unusual
have
Banks
that
(000's omitted)
New
p
Banks have sold Government Securities
individual
Government
have
Even some big lendfinance companies and
as
member
1954
S.
banks
before.
ever
expansion,
insurance companies
situation might
quite different and less acute
the Federal
Reser^j&--hrad^ its
The Demand for Money
U.
tnan
term
bonds.
such
ers,
the present mpney
Credit got up to
other borrowers.
But should money rates be
H_,_
lf
Steady
remembered
be
should
It
Dollar
the
Keep
On Nov. 17,
Borrowing has become more ex¬
«
®\...
.
Some have sold shares
To
scarcer.
pensive for everyone but the bur¬
den of high interest rates is not
asking the
borrowed from banks rather than
interest
rising
could, without hampering
normal business, to make money
Rates
optional,
for
the chief
they
The Pressure of Rising Money
been
Many companies, wanting money
rowing which will raise prices by
?
bor-
years
types, except farm-
credit
more
directed
not
buys or
ooliga-
equalize credit pressures
tQ week. The will to
to
from
is
of all
have
ers,
although the strict money
of the Federal Reserve is
against them.
rates,
policy
sells the shortest Treasury
tions
During the past two
rowers
Loans
from
term
to a very lim¬
Our municipalities are
sufferers
short
has forced
ited extent.
the
by
only
borrowing
term
short
ments,
ar¬
For local govern¬
not feasible except
.
attached to
bills
of
Reserve
Federal
borrowing
by
for short terms.
is
influence
psychological
the undue importance
same
postponing final
been
has
rangements
them bidding
ity has kept bills from declining
in price as much as might have
been expected.
suffers the
Treasury
S.
for
be strict in their
can
The Federal Reserve could have
created free reserves for the member. banks but, on the contrary, it
for
the
disadvantages
as
local
govern¬
ments on its billions of financings.
also
against corporations
and dealers. This special popular¬
the use
high,
rates
interest
With
working capital not likely to
for a while. The banks
and
expect to
of the borrowed funds.
much under the discount rate, are
bear
Prices-More
Buyers
to do.
profits by
their
increase
They
Higher Rates-Lower
for expand-
or
^as focused on the banks,
judgment of the credit-worthiness
of borrowers. But they don't stop
lending, for that is what they exist
borrowers
business
all
corporation
of
prayer
will
loans.
for spending
row
charge whatever the
can
Thursday, December 6, 1956
.v.
days
in
to
money"
Reserve
bank,
but
here
and
probable under these circum-
everywhere, changes its rates
only to correspond with what has
stances."
already taken place in the
money
j
Volume
184
Number
5592
.
.
The Commercial and Financial Chronicle
.
(2415)
i.
market.
From
dividual
borrowers
the terms
agree cn
will
day
to
Continue^
pf&xfi
lenders
make and
so
the
scale
of
serve
invented, by the
interest
not to rule
way,
and
reserved of the domestic
the
industry in 1975,
pain of its jumps and bumps, es¬
pecially those of its brief erratic
tie
If
interest
rates
do
in
move
20
to 30 year cycies, no central bank
ever
has
haps
it
can't
The
If
controlled
we
rising
in
Per¬
done.
Necessary
are
Bonds
long
a
period of
i e:, of general
wide prosperity,
money rates,
confidence
we
be
Most
them.
and
not far
are
But whether
along in it.
no, it can do no
harm for all those concerned with
municipal
bonds
to
proceed
on
the
assumption that the general
trend of the cost of money will be
upward for a dozen years or more.
Within the long trends there al¬
ways have been
downs,
frequent
the ground cannot in-
resources in
definitely supply all of the nation's rapidly growing needs for
liquid and gaseous fuels.
The great debate concerns the
ouantity ultimately available, the
rate at which it
be recovered,
can
at what future date
productive
they must be
Intermittent
periods
ex¬
pacity will be unable to meet
quirements, and the
denies
one
even
that
is
now
plement
order
production,
reserves
snmlfm
be
maintaining and improving living
civic
communi¬
ties.
pac.ty for
emergencies.
argument
is
states,
local
governments,
and Authorities, with few excep¬
tions, seek financing only for con¬
struction projects necessary to the
health,
education,
or
civilized
convenience
of
their
tne
pest
The real
the
over
interest
President
the
to
equitable
ot
our
the
year
little, really. Last
increase
credit, chiefly for
ceeded
empt
the
total
consumer
cars,
ex¬
tax-ex¬
new
issues.
The total
in
in
new
of
such
public
small to
terest
of the funds
have
financing
much
rates
involved
but
is
too
on
effect
in¬
The
flow
of
credit
must
1
Eisenhower dealt with
S.
Flemming, Director,
The
study^ should proceed, of
on
the assumption that
course,
plans which
be
un-
He said,
ar^ developed are to
consistent
with
the
requests
that you have made to oil importto
voluntarily
crude
of
a
•
oil
keep
this
into
country
at
level where they do not exceed
leyex wnere mey ao not exceea
significantly -the
imoorts hore to
the
nroduction
domestic crude oil in
Now
can't.undertake to dis-
we
here
of
1954."
all
of the questions- involved in the issue of oil imports,
We
all
born
this
recognize
nrobleni
as
stub-
a
requiring
best
our
to
our
This
be
can
can
be
brought
cooperation
investors
stitute
the
modified
of
who
about
the
the fact
by)
tha\jeriiv? unalterable fact must
in a,? intfdePa»de"t
That
world.
guide
our
thinking.
Pi«in«r
Oil
<J11
rusing
interests
hopes
for
area.
Question
of
Some
you
of
Self-Sufficiency
believe
last,
I
advised
am
7%
some
mar|
reasoned believe that the
continue to rise.
future
in
Indeed,
which for
the
entire
(in harmony, in the
favorable atmosphere of free en¬
terprise, they can find ways'to be
mutually helpful in providing Lie
steamships —rior
funds
hides.
to
American communities
keep
our
its
crease
oil
for
the
power-^for
Military rr-for
\
healthy
#
1°
:
face
will
a
of
in-
oil—
unon
industry—for
railroads
and
automotive
g r
ve-
Where is itvto
come
come,
from?
from
Ob-
every
region of the world—a major portion from thp-Middle East, so far
Fahnestock
as we now
(Special to The Financial Chronicle)
that
continue
to
don S. Wells has become connected
be available
with Fahnestock & Co.,
Sunrise Boulevard.
That simply means it is important
too, that tbe.r United states con-
1750 East
the world markets.
in
With F. I. du Pont
(Special to The Financial Chronicle)
MIAMI, Fla.—Charles T. Cubellis
I.
is
du
affiliated
now
Pont
&
Co.,
with
121
Francis
Southeast
and repeated
soon
Joins Sessler Co.
reflects
there
neither
states and
^ g a„y
nor
Tn
security
foreign
certainly, the record of his-
oiL
r"*
tory
Canada.
,,T.
with
10
John
Post
ayne
was
Gleason
G.
Office
Sessler
Company*
Square.
Mr.
Ron¬
formerly with Sherman
& Co.
and Keller Broth¬
Who
Will
to
us
,
0
Disaster.
Western Eurone will face disaster
if
Middle
East
oil
is
perma-
nently cut of&i.
There is, however, another side
Securities
Co.
to all this.
The
countries
ourseives to be-
the
Middle
SrDriJe
wnere private enterprise
developed
In
to
T
stafford
of
Qnate, the industry has
administrative
or
a
'
(Special to The Financial Chronicle)
WEST
Mozie
inc
enternrise
nhilosonhv
with
abll
shouM be
oUcom-
to achieve
thei?
orderly development of
without
resources
self-sufficiency must be found.
The costs of achieving self-sufficiency> jn iron ore> COpper ieacj,
and zinc
or
even
we
could
Harvey Building,
staff
•
,
,
.
.U1
a^e^ ^l^RcieS^1^-
to
™
dl
f
cost_in
tin
stratesic
strategic
industrial dia-
o1 cost
in
un,
United States and
have
such
such
thosp
As to some minerals and metals,
effective answer to our security problems can be found in
stockpiling practices, such as we
an
Joins
T
should
be
made
for
the
Insuring an adequate supply of,
petroleum
is
matter
a
Military
almost
of
major
operations
entirely
are
by
supporting civilian
services simply bog down if adeouate
supplies
realize
1
not
are
that
of
what
you
Two With Inv. Planning
to
years
You
come.
if
you
argue,
not
are
permitted to meet the peacetime
requirements of the country, how
can
you be expected suddenly to
expand outnut to meet emergency
Despite the merit of this point
of vjew> ,jt js my considered opinjon
the
over
next
the
30
we
^ap
resources
the
to
oil
will
countries
that
other
This
States.
sav
demands
require
effectively the
more
of
United
meant
for
than
is
sha11
we
Minimum
We
are
not
slack
ministration to
The
in
up,
he
in
a
in
this
Ad-
minimum of in¬
private
Secretary
Under
Herbert
it
Interference
committed
FVa
John
Fu'lfer
F
Mass.
mass.
—
—
Irving
and
Lena
M.
r.ena
ivi.
Poll
have
joined the staff of investors Plan^
^
ning Corporation of New England,
H*
*
'
V.
Barclay Adds to Staff
Cvikota
William
'
tein
(Special to The Financial Chronicle)
m'
joined
the
^staff
&
Gardyas
have
cpvpnth
215
has'
208
West
South
—
Stanley
been added
Barclay
Samuel I B.
of
Company,
111.
CHICAGO,
^precner ana Haroia fatein nave
La
Investment
Salle
State,
to
oil,
when
said:
Street.
Strppf
son
&
Co
few
Co.,
Mr.
Inc.
——
We Can Hope!
"I
would say
that our biggest problem basically
problem which is expressed perhaps in the
formula—peace with justice, and the renunciation
of the use of force. Those are very basic, both be¬
is the
cause
of
our
adherence to
those
provisions in the United Nations
Charter and because that is arti¬
cle No.
1
in
North Atlantic
the
Treaty.
"I believe that there is
a
grow¬
ing understanding of the United
States policies in world affairs
which has dissipated some of the
doubts that were entertained by
some of the
neutrals, and there
is a more sympathetic acceptance
of United States policies. We are
John F. Dulles
not adopting the policy for that
reason,
we
are
adopting the policy because we
think they are right enlightening policies, and be¬
cause we feel that those are the policies to which
we
are
bound by the Charter of the United Na¬
tions."—Secretary of State Dulles
It
in
is, of
such
has
not
not easy to know
course,
affairs
so
as
far
these.
what is "justice"
Renunciation of
always survived
in the
"force"
practical
everyday world.
are
J.
to the
Gardyas was formerly with Lea-
1
business.
of
Hoover, Jr., summed
reference
Chatsey
*
Wlifl rranKIin
Archambault
long term—say
years—the
world
•
on just
call
some
"cheap" foreign oil, would be able
find plenty to meet all peace
and
wartime requirements for
many
(Special to The Financial Chronicle)
BOSTON,
UUSTU1M,
are
to
furthermore, that
120
mpmhprs of
Street, members ot
-
Wifk
rive
convinced that the domestic petroleum industry, if relieved of the
competition
Rtrppf
with
available.
of
many
S^IIp
Salle
the Midwest Stock Exchange,
LOS ANGELES, Calif.—Leon J.
oil Franklin
essential
affiliated
Inc., 68 Devonshire Street.
have followed. As to other materials, some provisions can, and I
think
a
South La
dealing
basis.
a
Nancy E. Jen-
—
h
2gSJ^®J^^er £Cn
to
on
on
h
the
the
on
Wlt^ these serions matters
such
John
Shillinglaw Co.
CHICAGO, 111.
.
World
++
w,
—
South Sixth Street,
rp^nnrmihilitv
keep
111
M- -Evans has become connected
with J. M. Dain & Co., Inc., 110
£rades of mica,
Pa^1 ^ laos.e ,^nose responsibility
m?nds and many othar strategic £ ^
^tention'
this
miaerats and metals.
Administration
to
Co
(Special to The Financial Chronicle)
MINNEAPOLIS, Minn.
the
right
conduct
conduct
whnsp
of
Free
unquestioned
an
expect just
exPect just
&
(Special to The Financial Chronicle)
peoples
thp
Weld
With J. M. Dain Co.
undulv
_
The
White
UeVOnShire btreet"
worjd.
admitted.
of
Devonshire Street
ones created out of an uncerlajn situation in the Mid East and
be
afforcj.
ron-
Planning
BOSTON,
Mass. — Henry
B.
Cabot, Jr. has been added to the
That they are serious ones, regreat—greater quiring sound thinking and planw*nt to |ssume ning by men of good will, must
wouid
perhaps than
Securitv
t
different sort. They are
a
Fla.—
now
(Special to The Financial Chronicle)
developments
upon
with
is
White, Weld Co. Adds
in
the
BEACH
Simnson
>
congr e s-
Foreign countries adopting the
PALM
L
nected
strong
sional.
iems 0f
Jor many of these materials,
liinvcvci, some answer other than
affiliated
Joins Security Planning
imports. So long as
voluntary efforts are ade-
paXs,
become
r
Danv
^
level
ha
with West Florida Securities Com-
greatlv restricted in
,
d
(Special to The Financial Chronicle)
selves^ut ^ off fronf these^DDHes" elsewhere in the worldtheiravail'
In the immediate future we are,
^ereen^
however, concerned with probaD'llty dUrmg an e™ereency- <
or
the
to
Corpora-
TALLAHASSEE, Fla.—Samuel
of this policy, the
pursuance
impinging
many other metals
Southern
unprecedented
an
Administration is depending upon
industry to regulate voluntarily
oil
added
With West Fla. Sees.
^as been allowed to operate, have
L
tungsten, for manganese,
more
dramatic
demonstrations of the vitality and
resourcefulness of the private
of
Venezuela,
where pHvate
?°me for
dependent upon other nations
"There
^
ers
Kuw^t
^uwait,
?o0Mration
allo'^ed
have
we
terference
-p..
Face
<of
economies
carefully ex- private
this appraisal. Repeatedly,
reqmres
amfne
of ecoEurope
(Special to The Financial Chronicle)
BOSTON, Mass. — Thomas G.
Ronayne has become associated
.
Fla.—Roy M.
been
350 Lincoln R
tiie Point. On the other hand,
is
exoerience, that
itself in the United
First
of
u
ernmental interference, whether it
-that
in providing incentives for furasexploration and discovery in
maintaining
production and ,the Un-ted States certainly, we
exploration in the Middle East.
ought to do the best we can at
Western Europe is desperately home to
discover and produce ped«per>Hfmt u.oon oil and trade with troleum within the limits of wise,
the Middle East; We know, by bitlong-term conservation,
ter
staff
and
l-known examples
only by complete self-
assured
sufficiency
BEACH,
has
measure of insurance against gov—
m
any decline ijp -tlm level
■nomic activity* in Western
Second Avenue.
MIAMI
xhomas
*ran,'1 Argentina,
the
tmue its effonfc for peace and
sist
re-
can
of
V JnS/r-j^ utmost importance
Middle East oil
At.
FT. LAUDERDALE, Fla.—Shel¬
know.
petroleum
technical, financial,
in
? *7la ar.e
those
requirements.
'
viously, it must,
progressive.
we
number
a
world
dependence
#
l
normal
every
Working
necessary
that
have
that
and
demand will be
greater. And, there is
which
security of the United States
concern.
Free World's over-all demand will
bond
First Southern Adds1
management difficulties. ,r,
The
^as^s.
the
powered
npm^rhi
uciiidna
publi
con.
and
John
bank^,
together
muneipal
Joins
that
peace in
of
basic
maintenance of extra productive
years
■
the
constantly
capacity.
the least of which is
Western European
ket.„
and
mutuality
of
their
degree.
rot
continue, with
officials, dealers and dealer
and
this
one
loca
rising interest rates.
closer
in
lies
the
in patience, good will,
diplomacy,
ingenuity, and.,in business dealing,
I simply want to emphasize that
it is a problem with
many facets,
stoppage except in a national
While demand for oil
in
the
But
the
planning, United States-will probably be
timing,
and
merchandising
of I some 4% greater this year than
fit
valueless
are
they have available
great markets of the West.
that
proportion
no
to
resources
unless
imports
emergency.
their bond issules
their oil
Those countries know
the
municipal
bond market performs a patrioti
function of definite importance
governments
°Ur
question in his memorandum
Arthur
cuss
very
place
and have engaged in governmental operation
have been
for Potash, and
domes
Office of-Defense Mobilization
growing
ponulations.
They ask
ra
totoetesttotoestofZfdomes-
xo
ers
Our
and
of
and sold.
They are more
important than any other kind of
financing because they pay for
our
in
nrnHiipfive
reasonable surplus proaucuve ca-
issued
conditions in
sup-
maintain
reasonable
der date of Oct.il2, 1956.
in part:
;
to
market it.
of
any-
to
necessary,
vance.
have
even though they have this
oil, not only will slip back in their
economy but also give up opportunity for improvement in their
standards of living unless they can
importation
some
domestic
to
influence
price. Hardly
on
secudtvn°my:
bonds
East,
re-
falling rates and rising prices will
be
generally welcomed and the
rising rates need not be harmful
if a technique for working with
them has been thought out in ad¬
Municipal
taken
sources
ca-
and
ups
and
pected.
could get litshould, however, get general agreement to the
proposition that the oil and gas
we
I We
agreement.
tnese factors
or
has
countries
nationalized
Long-Run U. S. A. Shortage
the money market but to ease the
moves.
which
petroleum field.
"Those
Oil Problems and
rates,
long before the Federal Re¬
was
invented.
And it was
since
that
in th©
(Special to The Financial Chronicle)
change the price of money. This
they have been doing, up and
down
than
13
page
which they*
on
do business and
in¬
day
and
35
in-
centive system in the world today
But
i
mankind would
feasible
substitute
dog" practices
so
is
certainly be served if some
developed for the "dog-eat-
long ruling in world politics.
■H6
The Commercial and Financial Chronicle
(2416)
Continued from page
"Do
10
Status—Dead
"Ten
Alive?
01
in vestment dealers themselves
"package
this
power."
earning
American
who
of
But
again there are many restric¬
tions. Every piece of copy which
mentions
the
words
"m u t u a 1
i
iere
?unds"
sent
be
where
of
fund must
the
name
to
or
Washington,
a
firm
by their firm.
spending the same pro¬
were
portion of their gross commissions
as
their competitors they would
probably be spending over $100,annually on advertising.
000
Other investment firms are still
advertising
more
the
in
less
or
.big
style of the '20s and feel that "dig¬
nity is the only thing that counts
in any promotion they do.
They
have failed to see how other insti¬
the
tutions like banks have humanized
•of buying
and
Association
A mention
the SEC.
Dealers
advertisements
these
screens
Security
of
of
for
of the
one
advantages of these funds—
periodic or accumulation plan
them in small amounts
—can be made only if followed up
with several warnings about abil¬
ity to
the payments, etc.
averaging,
another
carry on
Dollar
cost
popular feature of these plans, can
be mentioned only in a very re¬
stricted way.
modernized their advertising.
Still
vertising today
ad¬
the members
Exchange,
are
of the New York Stock
which
organization must approve
■all copy run by their members.
Local regional exchanges also re¬
firms
other
somewhat
have
but
advertising
to the tradition that
Advertising Pays Off in
cling
"Old Hat
Wall Street."
As
fact
of
matter
a
the
is
that
article in "Printer's
the story of
of the nation's larger invest¬
title of
an
Ink" which^features
one
firms.*
ment
This
article
this
In
the
advertising manager of the invest¬
against
defends his
colleagues
criticism of
He insists
frequent
the
Wall Street advertising.
quire prior approval.
financial
that
ads
be
must
if any industries require servative. He even
says that "con¬
lhat advertising by one member
sumer-type appeals may be not
-of the industry be censored by a
only
ineffectual
but
downright
■committee representing the entire
dangerous." Here is a leading in¬
industry. While the restrictions of vestment firm which tells readers
the Exchange are needed and good
of "Printer's Ink" that the basicfor the industry, they do prevent
desire for money must be treated
brokers from using some of the
cautiously and that it is like sex
obvious
appeals so
successfully in this
regard.
He ridicules the
used by other types of advertisers.
idea of appealing to the senses, of
For instance the word "savings"
stressing emotion, snob
appeal,
purchase of specific securities
providing or offering to
without
provide information about the
curities.
There
essential
to
other
are
rules, all of which
se¬
basic
the
maintain
You
(and I
cannot
from
income
imply
investments
that
could
the word coidd not will
use
can) help finance a new home.
California a state body, the
or
In
Division of Corporations, also may
disapprove of copy and must re¬
view all
fore it
issue advertising be¬
new
be used.
can
Any advertis¬
ing which attempts to sell new
venture securities, including book¬
lets, circulars and advertisements
must
their
pass
scrutiny.
nically, all investment
Other
Tech¬
should
this body for their
be submitted to
files.
states
copy
have
similar
regulatory bodies.
prohibit
of
investment
financial
take
copy
stitutional
or
vestment
advertising
firms.
"Sunset
year,
not
Until
Magazine"
of
would
nature, in¬
any
otherwise
from
in¬
fifms,
amined and approved it, but you
cannot mention a specific security
the company whose shares
you
recommend.
You might want to
or
sell
ownership in the Telephone
Company as a good conservative
investment, but you could not do
in
fo
"Sunset."
The
"Evening
Post,"
magazines also
■copy
and
"Saturday
a
other
some
screen
investment
and the New York
requires
"Times"
advertiser
new
to
fill
out a lengthv questionnaire before
accepting his copy.
Many
Do
Not
Consistently
Advertise
Investment
are
still
many
*vho do little
all.
One
of
reasons.
There
investment
firms
or
the
no
advertising at
nation's
largest
investment firms with offices from
-coast to coast openly admits
they
do not believe in
any consistent
advertising, limiting their
to
her
an
announcements
with
love
your
block
a
of
Advertising
or
efforts
occasional
many brokerage firms' adver¬
tising today and I think explains
to
great extent why investment
a
advertising
is
only
half
These headlines have
to
experienced
an
usually
has
who already probably
one
brokerage account with an¬
firm, and doesn't
switch
a
other
brokers any more
insurance
does
banks.
or
Such headlines overlook the really
important
which
investment
not
cultivated
be
must
brokers today
.
market
.
stocks and those
own
by
those who do
.
who
are
compre¬
other
form
investment
of
life insurance (82%). Less
than one out of four adults know
such
as
what
stock
common
the
half
adult
Some
do
not
know
New
"Times
York
Magazine" and other supplements.
million
about
think
who
like
to
Some
40
would
them.
people should
more
stock and
own
knows
million
about four
non-shareowning households ac¬
tually
considered
buying
stock
last year but thought they should
know
Now—is this
profitable
to
untapped audience
firm?
brokerage
a
Can they all afford to invest?
they
the
take
some
type
invest?
to
which
the
of
fit
do
to
that
note
$10,090
this
in
the
earn¬
have
year
a
contacted
broker.
by
in¬
an
Also significant
interesting fact which the
discovered: Many people
$75,000
to
For
a
do
year
not
instance, four out
five
of
and
and
salesmen
to
his
Of course, most readers
this
as
rather
a
to
proach
but it
recognize
far-fetched
winning
girl's
in
a
set the stage
does
ap¬
hand
hu¬
a
interest way for the Exchange
explain
ment
a
the
to
article
set
is
stock
own
publicly-owned companies.
While
"can
.
we
switching
the smart
say
to
convertible
new
selling securities
of their advertising
some
their
the
show
experienced
how,
reach
the
to
can you
investors
new
with headlines like "How to Meet
Uncertain
Market
"Ten Reasons for
Conditions"
or
Bull Market."
a
Many brokers also fail to real¬
ize
that
effect
stockholders
—•
getting
is 48
average age
and
are
versus
in
—
The
younger.
51 in 1952
of
advertising
of
effectiveness
better and
good design in
art work and
advertising.
More
should be
selling the idea
advantages of security owner¬
Fifth:
Advertising
show
the
which
things
that
in¬
sound
vesting makes possible.
Sixth:
In
business
a
which
in
most of those in
it offer the
merchandise
the
at
wherever
might be:
training of salesmen, extra
ices, such as a transcribed
use
to
histories
case
show
how
firm
to
(if
not
part of their financial
a
their
could
Ads
gram.
beautiful
show
new
pro¬
them
home
or
by
en¬
joying leisure and other evidence
of
if
a
with
success
indirect)
that
part in their
surance
one
of
reference
a
investing nlayed
camoaign
If the in¬
success.
companies
them
(even
has
can
along
this
can't brokers do it?
States Government
with
do it
very
a
(and
effective
line)—why
If the United
can
get
their
a
little
savings
bonds advertising, whv can't brokerc onen the stops a little.
This
in
old
hat
"Printer's
sample
advertiser
Ink"
headlines
firm:
"How
writing
gives
these
used
by
his
,
to
Meet
Uncertain
Market
Conditions"
^Paine
Webber
Jackson
is
merely
Curtis.
an
particular
attempt to "push"
stock
study, booklet
A
fair
or
a
by
offering a
research report.
of
percentage
a
broker's
advertising budget should be used
for this purpose, since it will draw
leads or other inquiries
experienced investors who
coupon
from
want
that study or
want to know
what stock is being recommended
and
type
to
why. The idea behind this
of advertising is, of course,
get inquiries and possibly sell
the interested
particular
vestment
person
stock.
firms
But
are
in buying
many
a
in¬
merely "pub¬
lishing houses" whether they am
grinding out mimeographed re¬
ports on one sheet or compiling a
comprehensive industry study for
distribution
cent
&
a
great volume
advertising today
investment
edition
to
of
investors.
the
In
a
re¬
Sunday New
York "Times" 10 out of 13 broker¬
to
come
when
expect
tliey
do, is needed.
These
suggestions to
awaken
advertising from its
semi-comatose
would
state
look
new
a
bring
investment
in
advertising.
But
needed to interest
owning
is
people in
more
share of business. "Peo¬
a
Capitalism"
ple's
look
new
a
merchandised
if
be
must
we
better
raise
to
are
through equity financing the $60
billion needed
to
buy tomorrow's
plants and tools.
Yearley Elected to
NASD Bd. of Govrs.
ATLANTA,
Ga.—Alexander
The RobinsonHumphrey Co., Atlanta, has been
Yearley,
IV,
elected to the Board of Governors
of the National
Association
of
Securities
Dealers.
He
served
trict
on
Dis¬
NASD's
Commit¬
tee No. 9
stock
(Ala¬
bama, Florida,
handling, certain types of trans¬
in
Georgia, Lou¬
report,
such
more
staffed
enced
mutual
as
and
research
isiana, Missis¬
board,
or
T
He
1956.
Seventh:
Media
heretofore
used
by investment adver¬
tisers should be explored. Several
never
financial
advertisers
excellent
results
has used it for
have
reaped
radio.
from
One
20 years.
over
One
small investment firm found
very
that
out
with
television
excellent
could
results
be
in
used
small
a
valley town in California.
Eighth:
Since
business is
to
investors,
all
would
to
appear
be
securities
the
service business and
a
many
firms
well
for
strive to create
with
done
and
created
the
in
the
help of
impression
the
advertising
and
1954
was
Chair¬
-
IV
in
committee
the
of
Chairman
and
in 1955.
■
members of
District Committee No.
9 were:
Gus G. Halliburton, Equitable Se¬
Elected to serve as
curities
Tenn.;
Nashville,
Corp.,
Malcolm M. Manning, V. M. Mann¬
ing, Greenville, S. C.; and William
S. McGinness, Elder & Co., Chat¬
tanooga, Tenn.
Carroll Gunderson
to*
Sometimes
Yearley,
man
Gunderson, aged 59,
Carroll A.
a
advertising
other
firms
some
personality or a
character which identi¬
be
can
Vice
Alex.
brokerage
be alike, it
fies them from others.
it
essee)
e n n
fi^om 1953 to
location.
even
and
Carolina
a
quote
South
sippi,
experi¬
more
,
a
department,
complete
more
funds,
Senior Deputy Manager
and direc¬
of Govern¬
ment Relations of the American
Bankers
Association,
died sud¬
of its Department
tor
Hunt¬
denly Dec. 2 at his home in
firm's
ing Towers, Alexandria, Va.
He joined the American Bank¬
ers
Association in 1944 as Secre¬
phy
tary of the Small Business
promotion done by the firm.
Slogans,
which
emphasize
the
policy and selling philoso¬
can
help. Sometimes it's a
copy theme—like "The Man From
E. F.
Hutton"— or it might be
achieved through a consistent use
of human interest type copy or, as
a
Tulsa bank has done, by featur¬
stores
their
feature
.top
mer¬
brokerage advertising.
Unfortunately,
of
to
experience
market
Ninth: There is
testimonials
or
successful
social) .people have made invest¬
ing
thi*k this indicates the need to
modernize
what
serv¬
chandise.
opportunity
financial
reader
brokerage office, and tells
a
Ex¬
I
alert
invites the
which
into
thorough
tainly
wonderful
program
participate in it- or take only a
passive interest in it. Advertising
advan¬
possible.
more
ing their services in newspaper
advertising
just
as
department
a
but
same
preferreds?" I say no we wouldn't
say such a thing but there is cer¬
some
Week
price,
develop
and advertise competitive
tages
What
us:
helped lift this veil of mystery
many brokerage firms do not
same
efforts should be made to
amples
in -America
vest
fea¬
be used effectively to
can
remarked
happen if I were to walk
brokerage office. The In¬
a
end results*of in¬
tures the actual
vesting
into
copy
first
to
to
once
would
highly
radio net¬
use
using photographs,
Fourth:
a
about
and
2,140,000 names added to
brokerage rosters in the past four
years the median age is only 35.
for
One
placed executive with
investment
\
increased
company
advertising must be
sophisticated and
investors,
how,
oh
some
directed
on
"Old Hat" advertising—the writer
the idea of snob appeal. He
.
not
Stockholders Are Getting Younger
back
scorns
.
do
popular invest¬
very
plan.
Getting
writes
in
.
.
.
to
boy
among
for
techniques which tend to produce
interest and readership.
There
are
ample studies which
income ranges from
upper
stock.
own
more
or
been
never
vestment
is
65% of people
win-
the
market
more
necessary
them
of
office.
shouldn't
risks
Many
Are
reluctant to enter
are
brokerage
a
them
Third: More brokers must mod¬
ernize
better
girl friend into the holy
state of matrimony.
The heading
reads
"Not only that, but I'll
Start a Monthly Investment Plan."
couple with
obviously trying
a
the
at
market.
actions
first.
more
doctors, lawyers, major
minor executives, engineers
over
this
at
only
households
stocks
own
more
and
brokerage office.
a
million
16
is
population
the location of
$7,500
friend
and aim
look
ship.
place only one out often families
own
stock
although
90%
have
Thursday, December 6, 1956
.
invest who
has
brokers
many
fresh
a
potential
and
opinion
surveys
con¬
by
the
New
York
Exchange indicate that in the first
rently
the
think
I
take
shareowners
ducted
surveys
is
Second:
must
devoted
Three
.
it.
understand
can
hensive
same
appeal he ridicules is Used
sensibly. Take for instance a full
page advertisement appearing cur¬
Here
ate
more
market?
.
that the financially illiter¬
ten so
unfamiliar with in¬
vesting and its rewards. Just how
big and how profitable is this un¬
completely
.
make it really come alive?
First: Most copy should be writ¬
readily than he
agents
today to waken
advertising
investment
up
alive.
appeal
investor but
some
Advertising Succeed
What is needed
of
ing
'Well, this is not as ridiculous as
seems
particularly if the very
in
How to Make
typical
one
of these negative cate¬
gories. But I think it's interesting
Refers to Insurance and Banking-
it
is
into
AT&T)."
emotional
advertising is only
half alive for other
1
example he says in a jok¬
ing vein "Stress emotion? (Show
last
including J. P.
Morgan themselves.
Today they
will take copy which is institu¬
tional after they have first ex¬
s
advertising.
As
man
Many media also either restrict
or
out of the realm of finan¬
as
considered
are
high
ethical standing of the industry.
Copy may be censored for many
reasons.
etc.,
cial
Investor
.
work
on
Bull Market."
a
appeal
con¬
Few,
par se cannot be used. No recomjmendation can be made for the
of
type
some
ment, firm
for
advertisements on the finan¬
pages were offering a report
some s^ock.
tapped
their
modernized
still
very
financial
in
leaders
Your
cial
Inexperienced
to
age
to
reports
If this
featuring
ads
out
turned
C.,
D.
committee of the National
a
special
Reasons
Appeal
,
-sncrchandise
in
Mistake
This
"Consider Buying Tax-Free Bonds
Now."
Advertising's
Investment
Make
You
Investing?"
.
a
broad
area
good will and confidence that
be
created
by offering
in
of
can
adver¬
tising to utilize the program plan¬
ning approach. There are people
v/ho
have
only a hazy idea of
they want when it comes to
buying
securities.
Haphazard
what
methods of purchasing and
securities without
leaves
them with
security.
As
of
its
a
well
like this—like the insurance
have
Tenth:
There
a
many
only
appeals to buy
a
office
Washington
April, 1956,
was
appointed
On Nov.
1. 1956, he was named director and
Chief Administrative
Officer of
Senior Deputy Manager.
the
newly created Department of
with head¬
Government Relations,
quarters in Washington, D. C.
J. C. Flax Adds
(Special to The Financial Chronicle)
lead
"Careful
among
in
and
known
the
in
panies do—can create
many
Association's
feeling of in¬
says
Magazine" adver¬
planning pays
off
whether
you're
building a
new home or investing." The firm
that offers to perform a service
interest
Deputy Man¬
of the A.B.A. and became
Secretary of the Association's Na¬
tional Bank Division.
In 1952'he
assumed additional duties at the
ager
SPRINGFIELD, Mass.
"Sunset
tisement:
who
In 1950 he was made
financial goal
one
brokerage firm
selling
a
Credit
headquarters in Chi¬
cago, and in 1947 was transferred
to New York where he also be¬
came
Secretary of the Associa¬
tion's Credit Policy Commission.
Corp., with
and heard
specific stock.
people with
the
1562
far
means
too
to
of
J.
has
been
Clayton
—
Robert
added to the
&
Flax
Co.,
Main Street.
Join J. D. Creger
new
investors
still
staff
com¬
fresh
seen
are
Dionisi
F.
WHITTIER, Calif—Frank Bayon,
Jene vie ve W. Bristol, Fred L.
Elmer, Boyd G. Jensen and
L.
D.
Pluemacher
are
now
Robert
with
Creger & Co., 124 North
J.
Bright
Volume
184
Number 5592
.
.
.
The Commercial and Financial Chronicle
(2417)
37
Securities Salesman's Corner
33
The Commercial and Financial Chronicle
(2413)
'Continued
^supporters differ,- -butrfew
.that we would feel it.
from page 20
deny
*
is the system best.suited
society.
^V^the
prime
A Cnrrent
speed up our. own expansion.
"Whatever the future may hold, we
dare' not
let
ourselves
be
over¬
taken.
imiJtiAn
Appraisal
In
and
savings
both
are
strongly influenced by the tax sys¬
tem. High personal and corporate
more congenial ur¬
arises from the great many
things still to be done in our own
country. Education, health, hous¬
ing, roads, raising of the lowest
income
brackets, all demand a
rapidly growing national income.
rates take some of the zest out of
Growth also
arrives
Another and
gency
i
L.
!,...» i
_
4'i 4-
^
the hunt for
x
A*
1
n
»
♦rvlrA
a
profit. They also take
of the wherewithal that
large
and small businesses and wealthy
some
individuals
might
otherwise
put
short cut into
a
'
in contrast to Europe, no
blind
a
the words of Talleyrand,
"It
is
mistake."
not
than
worse
crime, it is
a
Deliberate
role
inflation, if
crime, is at least of
very demorality, because it in¬
volves an attempt to deceive peo¬
ple, and works hardships on those
I.
a
i
..
1.. 1
„
1 M.-
—^
..
batable
least
able
t_
defend
to
'
:
_
4i.
!
themselves:
know
Wt
We
a
of two
ence
tem
tbc
the
be effective in
can
When
output
in
control.
sys¬
emer¬
an
converted
we
private enterprise to
ment
a
had to speed up
we
hurry,
a
exDcriexpeI1
that such
wars
gency.
from
lrom
from
But
govern¬
know from
we
equalization, if all par¬
seems
to
ticipate in it. The enlargement of
tween
social
equity and progress.
the bake softens the argument over
the size of the slices.
If
try
even
distribution
the same experience that, to be
dependent,
the old.
Very probably it is also effective, such a system must em¬
a
mistake, like most attempts to ploy strong compulsions. By ra¬
fcol all the people all of the time., tioning the consumer, by control¬
For a few years, quite likely, the ling production, prices, and wages,
a
centralized economy can thru
inflationary preseription may
out a lot of goods—for fighting; or
work. The economy, working un¬
sive
der full steam and with the
for greater
Granted
serves as
that
shouldn't
a
ment
on
rely
substitute
a
is urgent,
growth
conservative
govern¬
American
consumers
back
into
1'ieir
income.
out¬
want
a
free
have
so
no.
fine
a
to
because
busi¬
and
consume
put and
Had
they
decided
of current
more
out¬
less, growth would
save
have
been
\vOuld
still have done well by us,
less.
The
economy
fry making the most efficient
possible of the resources that
iled.
new
because
it
a
decision is in the hands of its
free
A
e*'s.
us-
therefore,
tjiay be operating with high effieconomy,
riencv, and yet have little growth
-
—if little
if..
capital is fed into
new
By the
cient
token,
economy, such as
sian,
may
ineffi¬
the Rus¬
same
an
nevertheless
advance
rapidly if living standards arc held
dawn so as to allow a high rate of
investment.
ruit
assure
fast
circumstances.
in create
growth
What
under
an
Our
success
war
in
should
real dif¬
encounter
may
farther along the road. But accel¬
erated growth is only one of many
compelling
of course, why
everything must be done to pre¬
vent
new
a
■cause
to
reasons,
disaster, and
believe that if
speculative
slave off
a
find
excesses,
severe
than
dol-
a
themselves
the
at
short
end
inequality have more to gain
over a period of years, from faster
growth than from any conceivable
income redistribution. A
in
real
output of only
speed-up
extra
one
lift
soon
even
economically weakest into in¬
of
we
have
we
we
avoid
can
also
depression.
be
lost
altogether, the economy
spiral off into chaos.
Or if
this escape is
ployment
markets,
courage
ment
The second
redistribution
amount
no
could
promote
them.
The
conservative
science is
social
put at ease
con¬
ated growth would be
to invigor¬
ate the body economic—to expand
its'little grey cells, through more
education and research, to quicken
its reflexes, by removing rigidities
and
sharpening incentives.
Con¬
servation.
defend
to
differences
income and wealth
on
in
grounds of
natural law, or property
motivations.
rights,
or
and to leave private enter¬
prise the elbowroom it needs.
Capital Formation the Core
-
But
important as these things
they qre not the core of the
question. The core is capital for-
•are,
Toation.
want,
To get the expansion we
we
the last
must invest
five
years,
more.
Over
investment in
the American
#
rate
of
economy has run at
about 15% of the gross
national
product. In a relatively
country like West Germany,
i/; has been averaging 25%, even
predict
and
soon
vanced
How
7%,
ours,
3 to 4%.
much
an
economy invests
partly
on
incentives—
profits, markets, new techniques,
competition—and partly on the
depends
'
how
assurance
intensely
of
any
these
would
issue
the
clis-.
more
ized
to
approach
the most likely — and
probably earliest consequences of
inflation
economic
are
controls.
British
tem
to
the
growth
concept.
Its ultimate results bene¬
fit
those
even
the
bill
for
at
first
seem
Inequality
is
losing
its
sharp
edge, moreover, thanks to the
re¬
of our living habits by
technology. Not the least
science's miracles is the
in
which
it
has
between
shrunk
living
the
stand¬
ards.
The
in the
$5,000 and the $25,000 house¬
hold
basic
models of the
a
a
same
equipment and
lew more frills, its owner
few
inflationary
final
boom
But
forever, and they
be
exclusive
losing
what
a
50
off
themselves
is
would
alien
to
of
are
threaten
even
That
risk
our
is
political
too
high
a
to
there
other
are
ways
open
us.
The
threat
servative
people,
choice
of
inflation
great challenge
then
that
policy must meet.
given
the
between
is
con¬
Most
unpleasant
inflation
and
de¬
worst
two
of
freewheeling
con¬
the frictions
call
for
focus of
way
of
pretty phrase.
a
If
we
a
values
efforts
to
are
con¬
of life,
way
must
be
the
strengthen the
enterprise system.
To
begin with,
servatism must
the
American
life.
the
pression,
would
farmers
Even
started
and
century
of
small
to
yearly
is
rey,
when hard pressed at a Con¬
gressional hearing by Representa¬
richer.
challenge of rapid growth,
which we have been
discussing so
far, is intimately connected with
tive
thor¬
a
removed
independent
traders
be.
the
now
industrialized
and
a
nation
out
con¬
The United States,
part, is
oughly urban
community —
from
successful
keep its policies in
changing pattern of
for the most
It
is
that
it
ago,
is startling.
gap
Patman,
a
second
issue
that
conservative
economic policy will have to meet:
the problem of
inflation.
In its
early
stretches,
like
primrose shortcut
a
The
inflation
always
ently— two .positions.
that
say
prospects
of
rapid
of
this
consist¬
Some
inflation
tively desirable because
the
to
proponents
argue—not
them
looks
is
of
posi¬
it bolsters
business
and
encourages investment. Others
cept inflation with moderate
luctance,
product
icy.
the
as
of
so
ac¬
re¬
than
their
of
mum
get
at
the
all
unemployed
By push¬
its
absolute
times,
we
rate
maxi¬
shall
of
also
growth.
About the degree of inflation
that
this
procedure
Conservatives
policies
the
choice
believe
relieve
can
between
the two, which often
razor's
that
people
inflation
edge,
into
looks like
a
safe,
a
solid
thoroughfare.
A
and
fastest
Yet
would
involve
its
third
challenge
to
conserva¬
From
these
The
lems
social
of
and
economic
abstract logic, as a practical prop¬
osition laissez faire long ago joined
the dodo. There is no place for it
in
modern
phy.
conservative
Ours is
thg
government
large role. To this fact
the
owe
good
changes
lenge of
a
nature
different
chal¬
from
those posed by growth and
by in¬
flation. It concerns the enduring
structure
of our economy, rather
than the current functioning. It is
all the more basic for that reason.
In
conservative
things, free enterprise is
a
method
services.
of
economic
is
more
of
than
producing goods and
It is
enterprise
view
a
a
way of
highly
life.
Free
efficient
system, but above all it
largely
the
25 years, and
from there to improve
them and to initiate further
An
industrial
own.
urban
needs broad social
con¬
home
the
to
can't
go
It
to
cover¬
farm,
live
the
aged
their
chil¬
and
with
go
needs
protection against
illness—medicine is no longer in
the
stage
of
simple
bought for little
better
that
are
supply
money.
remedies
It needs
housing—the social condi¬
tions of urban
not
and
Many of these : expanding re¬
quirements" can he filled by pri¬
vate enterprise, and as
many as
should.
can
living create strains
solved
demand.
readily
It
Much,, however, will
vhave'to be done by
Spvernment-
local it possible, Federal if neces-
sary.
Is this
ism?
Those
march into socialwho take that view
a
disregard the dynamics of
free
a
They overlook the fact
changing living conditions
economy.
that
and
greater
situations.
of
wealth
create
new
It
happens that some
things for which need in¬
the
with rising income are of
the kind that, in Lincoln's
phrase,
the people cannot do so well for
creases
themselves and which the govern¬
can do better. Should
private
ment
enterprise be the dog in the man¬
and object to anything being
ger
done that it cannot do itself?
What counts is that these
things
a rich
economy can afford be
done in a way that preserves in¬
that
centives.
There is
no
greater dif¬
ference in the world than that be¬
tween a man who is
trying hard
and
the
who is not.
one
T^keep alive
play of rewards and penalties,
unemployment
must not make
we
attractive
more
We must
not
ined or real,
good health.
than
make
work.
profitable than
more
But
hard
illness, imag¬
when
the
living
standards of the great bulk of the
population
further
called
rising further and
are
above
what
be
to
used
subsistence, there is plenty
of room
for decent social services
without risk of softness.
The shape of the American
so¬
ciety is changing, and our ideas of
where right leaves off and left be¬
gins must change with it. Those
who look at it with the
eyes of the
past may call that a dangerous
trend. To
our
all leftists.
grandparents
But these
sequences of a
cialism
do
justice.
They
capacity of a
poor
underrate
so-
and its
economy
the
free economy to adapt itself to the
changes of its
making.
own
A further touchstone of
ative
conserv¬
sincerity in calling free
terprise
en¬
way of life is equality
opportunity. We have equality
today for the highly talented. A
really bright boy can get an edu¬
a
of
cation
any
he
and
We
to
get
can
walk of life,
starts.
do
the
top
in
matter where
no
have
not
it
for
the
moderately talented. A mod¬
erately talented son of an Ivy
League
alumnus
will
to
go
his
father's college and spend his life
in
a
reasonably good
job.
moderately talented
is
stands
man
the
key.
a
The
son of a work¬
good chance of
life.
access
More
to
it,
Progress in racial in¬
tegration,
as
fast
is
as
possible
without social and political disin¬
tegration. ris another step toward
fuller equality of
opportunity.
Still
another
requirement for
free enterprise as a
way of life is
te be serious about free
markets,
competition, and decentralization
of power.
potent
forth
They
devices
are
by
initiative;
ment to all who
the simple but
which we call
ensure
fair treat¬
participate in the
economy, and
ultimately safeguard
freedoms.
We
shall
never
achieve perfect competition nor
perfect markets.
But unless we
our
work
shall
them
at
in
time
The
everlastingly,
have
very
little
we
of
by
needs
Objection to Bigness
This calls for steadfast
applica¬
tion of the anti-trust
laws, not to
combat bigness as such, but to en¬
sure that bigness docs not become
monopoly.
It
business
chance
tax
a
means
giving small
through the
through government
through monetary and
—
system,
contracts,
credit
policy.
progress
toward
agriculture
j
con¬
successful, dynamic j
their
performance
;
we are
the
are
Those who speak of
economy.
society
security
them.
cither.
age—unemployed workers can't
dren.
the
a
of the last
structive action of its
a
we
functioning of
terprise
is
plays
economy since the war. Conserva¬
tism today must accept most of the
must go on
This
philoso¬
mixed economy, in
a
economic policy will be the
strengthening of the American en¬
system.
urban
society cannot be solved by laissez
faire. Whatever the beauties of its
which
afford
being overlooked by
education, and easier
prob¬
industrialized
an
!
Government.
ing
familiar facts
these
■
even
becoming
needs, opportunities, and ob¬
ligations.
self-preserva¬
tive
keep pressure at a peak.
high-pressure economy, it is
to
no more
and depression and can.
eventually
convert the boundary line between
by¬
to
output
the instinct of
tions.
worker into production.
ing
This is
historians tell us that inflation far
oftener than depression has pre¬
ceded the breakdown of great na¬
pol¬
should be pumped under the boil¬
resource
prices.
ing experience of the 1930's.
inevitable
Both share the belief that all
able
stable
jobs
tion-—sharpened by the devastat¬
expansionary
an
the fuel that
easy money and big
government spending can generate
ers
over
for
out
came
and
all
economy-—
rich,
very
flow
closing of the
years
to
/t
;
The Place of
action—sometimes
chiefly with
human
a
enables .us
>
also
enterprise
painful sort.
broad
enter¬
effective but
an
than
more
a
free
regime.
To call free
life is
that
economically to
control, and a better
dictatorial
inflation.
probably take
Secretary Humph¬
the
life than
line with
another
such
superior
of
enjoys
as
the
democratic
price to pay for accelerated growth
when
of
all probability
In
have
conclude
cerned
liberties.
But
of the controlled system. Conserv¬
American
would
effectiveness
loss of initiative and
a
bitter
spending their
We have every reason
skeptical.
is
people. Pursued to their
end, economic controls
for
what they wanted.
would
It
eco¬
sys¬
of their freedoms—
that of
the
—
a
control
sumption and relatively low sav¬
ings of the 'free economy, and the
not
the
the
and seemed to
war
none
system?
But
luxuries.
contrasted with
it
they
their
in
us
under
bureaucratic
other than
of
mechanics of life
have become very similar.
$25,000 home contains better
The
the
central¬
that
staring
after the
years
nomic, and political temper of the
Becoming: Blunted
Inequality
way
an
when
presented.
in
difference
day
stave
who
be losers.
among
evil
the
us
living
were
of
way
thanks
control
face every time some government
bureau
issues a regulation.
The
worlds
Controls Follow Inflation
of
tell
serfdom
see
we
Among
the
system need not involve compul¬
sion.
Certainly there is no need
to be
all
reason
to conservatives.
eva¬
settle
government
proponents
money on
that
quickly
against
The
repercussions would make
themselves felt. But the prtoSpect
is there—an incalculable risk and
tasteful
peacetime:
and in favor of economic freedom.
off
tification
after
**«*oss
with
how
fiance
prise is
argued, will bring every last avail¬
war
largely
The result: Germany's
national
product has ad¬
imbalance
also
sion, black markets, and open de¬
atives
This
reconstruction
and
run,
develop to plunge it into a
deep depression. No one, of course,
can
to such methods in
allocations, foreign trade and cur¬
rency controls might help stave
one
poor
completed.
economy
long
We
inkling, however, of how
people would react
an
Price and wage controls, material
as
the
route
ever,
em¬
sellers'
for investment.
American
of the facts of life.
For
growth.
circumspectly, how¬
The
In the
friction
the
economist, economic ine¬
quality acquires a functional jus¬
simply
merit to
move
by overfull
perennial
while rising prices dis¬
saving and distort invest¬
enough
Political thinkers have
sought
servatives will want their govern-
~
and
have
we may see
may
by this ob¬
The
step toward acceler¬
blocker,
then slows down.
,
-
will
measures
perhaps
for
brackets to which
come
modern
we
opportunity
shares.
From
of
shaping
to the very
us
that
conservative
lars-and-cents point of view, it is
even those who
biggest
of staying
one
this endeavor since the
not blind
the
quite obvious that
active growth pol¬
icy is the obvious
cfat of depressions.
ficulties
easier
incentives dulled
of
expand
eventually,
The lid may
blow off, control of inflation may
equality
equality
all
favorable
The first and
ingredient of
forced-draft
safety
their penalty.
for
of
would
But
these
may
be done
can
down,
exact
conflict
is
tied
rapidly.
in¬
this
Yet
valves
more
the
we
of
therefore, does
circumstances
to growth?
we
inequality
accept
resolve
to
A free economy,
If
accelerate ' growth,
to
the
Precisely
free system, this
incentives
growth.
unorganized,
than for the liberal, the conserva¬
tive being more concerned about
resources.
is
to
down
ex¬
But the system does not de¬
the income
up
percent per year will
by itself what percentage of
output is to be ploughed back to
it
conflict be¬
a
use
cide
create
because
up
investment
slow
come.
to
one
by means of progres¬
taxation, we reduce savings
an
ploughed
economy
part of
the
to
so
have saved and
nessmen
open
curtail
^performance in raising income and
li ving standards. It has done this
w e v e r,
reluctantly,
and
Economy has turned in
h o
we
the
conclusion at which
a
and
economy?
The answer, like
many in economics, is yes and
primarily,
This is
sup¬
natural forces to
ply it? Isn't rapid growth
standing characteristic of
<Qur
into such ventures.
.
growing
'
so-
one
seriously questions .private
alley.property. The alternative is a more
when
centralized system, in which the
Napoleon ordered the shooting of
government would play a stronger
a member of the Bourbon
family:
like
savings that become available. In¬
centives
Slli55S£ 4.hc
to.lree enterpriser not
of
mover
needs—our
also
Conservatives can not Accept this
foreod-draft type of economy. The »n.at1,.ve
of
path "T inflation to tVi^n, looksd
in them
Thursday, December 6, 1956
.
.
tb'Vift^Tmore"'X^'''fi>rtuhai<Jiy^
'
•
..
The Alternative
Inflation—Crime and .Mistake J
.
It
a
means
further
self-supporting
through
flexible
price-supports and the ending dC
1
Volume
184
Number
5592
.
.
Trie Commercial and Financial
.
Chronicle
(2419)
habitual
our
crop,
It
surpluses.
Continued
from
willingness of industry and
labor to face competition not only
means
at
home,
but
also
from
abroad,
through gradual tariff reduction-.
Lastly, it, means preference for
private
local
or
action
Y~
;
•
....
..
..
Y
.
panies
-
this
Foreign Economic Policy—Sins
are, it seems to me^ the
elements of a conservative
economic
policy;; If conservatism
makes progress on these
fronts,
will incidentally help tp solve
problem
that
today
it
tellectual
that
the
anomalies, situation
chief
American
protagonist of the
private
vestments
United
contribute., .to;
L
Negotiating
Progress
has been made,
in
negotiating .treaties
foreign governments to es¬
with
tablish
treatment
Five
of
the
made
proper member of the community.
I;forbear to be explicit about what
Three
have
believe
I
to be the
view of many
about intellectuals.
businessmen
Yet the fact is that the main
con¬
far
so
has been,
not art,
sci¬
nor
the
be
organizer
of
production, has
the agent of this contribution.
en
Y We need not enter into the
for
sons
the
conflict.
disappeared
Some
in recent
rea¬
have
and
years,
the distance that separates the two
sides has narrowed. In this proc¬
third
Here,
.
tism
elsewhere,
as
conserva¬
that
three
into
others
Commission
expropriation
of
inconvertibility
or
exchange,
has
been
rather
a
controversial
subject.
However,
the Congress has again authorized
extension
the
of
and
program,
provided it with additional funds.
The
greatest shortcoming, how¬
the area which I
con¬
ever,
is
sider
by
far
the
detail
the
made,
them,
I
most
important
Without
policy.
would
the
like
way of life satisfactory to all,
the present conservative trend will
but
he
servatism has
interlude.
Con¬
great responsibil¬
a
If it is successful,
accomplish
of all
that
most
political
perform¬
conservative evolution.
ances:
recognition
is
from
by
its
of the
A
changes
fact
different
As
the
recom¬
were to
to
President
the
to
and-inequities."
twice
has
Sent
Congress urging
these
on
recom¬
Unfortunately, so far
the
Congress has not acted, al¬
though exhaustive hearings have
Halsey,
Stuart & Co.,
investment
as
held.
Some
day,
perhaps
next year, the needed
changes will
be made—at least, I
hope so.
Investment Considerations
The
man¬
own
policies and actions of
government, essential
as
they
are,
in
000
when we turn to a
sideration of the policies of
Dec.. 4 offered $10,000.Dallas
Power
&
Light
Co.
first mortgage
due Dec.
interest
accrued
The
the
bonds. 4*4% series
1986. at 100.848% and
1,
to
underwriters
bonds
Dec. 3
on
4.20%.
award
of
competitive sale
at
on
bid of
a
yield
won
proceeds from the sale of
bonds, and from the sale last
of"31,835 additional shares
common
stock, together with
month
of
will
the
be
used
construction
of
new
facilities
of
agement
trying to decide whether,
where, to risk the sharehold¬
ers' investment
into
account
than
for
this
The
stability
internal
ment,
protection
other
corporate
The
new
bonds will be redeem¬
able at general
redemption prices
ranging from 165.85% to par, and
at special redemption prices re¬
ceding from 106.85% to par, plus
accrued interest in each
Dallas
case.
utility
service to the Greater Dallas area,
and
adjacent unincorporated
areas, all in Dallas County. Texas.
The present population of the ter¬
ritory served is estimated by the
at 660,000.
company
For
the
12
Sept.
company
showed to¬
tal
revenues
of $38,057,-
000 and
net
the
govern¬
security
efficiency
and
and
the
freedom,
promptness:
the government func¬
enterprise, the
government-owned
existence
of
gov¬
ernment-sponsored
cartels — all
these and many more need to be
Most
income of $8,010,000.
of
that
honored.
in
course,
international investment is
surance
contracts
The nature ol
an
as¬
will
be
many en¬
terprises—and this is particularly
true
of
that
the
oil
the
be
plainly
refused.
Naturally,
exists
a
be¬
which
programs
governmental
are
such
as
those
in¬
—
ports—and
the principle
But
gory.
and I think
lieve that
make
the
our
clear
no
op¬
I also be¬
government should
all
to
of
record
is clear,
should miss
we
portunities to stress it.
countries
their
that
treatment
of
private capital, domestic and for¬
eign, will be an important factor
in
decision
any
foreign aid.
on
Unreasonable
restrictions
by
foreign investments on private
capital investments, whatever the
ideological or emotional reasons
for
them,
unfortunately
involved.
try
prolong,
Such
restrictions
indefinitely,
fruits of plen¬
tiful energy and productivity can
be realized by the people.
postpone
or
the time when
Substantial
the
Sized
Private
Gross
Capital
business—.requires
is being invested, all over the
world.
As a matter of fact, the
and
a
with
the
government
unilaterally
repudiates
such
the whole fabric of
contract,
ternational
point
That
the
seerns
of
is
trade
the
not
to
is
us,
Suez
a
in¬
of
a
of the
1955 exceeded
billion
of
I
the total
$4V2
economic
aid,
and
tant
these
differences
to
an
understanding of eco¬
Productivity meas¬
nomic growth.
solely
by
the
outside
plant
capital
built
invest¬
relatively minor
a
our
coun¬
business
grossly understate what is really
going on. In the United States we
have for years published capital
investment
estimates
which
in¬
clude all
expenditures ior capital
goods, whatever the source qf the
funds—new
retained
investment
money,
depreciation
earnings,
$35 to $40 billion is being
capital
United
is
This
in
the
the
meas¬
is
what
economy,
invested
expenditures
States.
of
ure-
are
going on in our
building for the future.
reported only
made
of
con¬
countries
have
the net direct
the
reinvested
earnings
of foreign subsidiaries, of invest¬
ments from depreciation funds, or
of
even
investments equal to
new
invest¬
in place. According to these
United States net private
proceeds
ments
funds
of
sales
of
with
and
depreciation
retained
earnings —
what we might call
productivity
improvements—which have been
responsible for our phenomenal
increases here at home.
The same factors
apply abroad,
important for
understanding of the contribu¬
and
course,
tion
of
the
American
private capital
of the rest of the
economy
world.
Incidentally,
of
ment
are
Commerce
the
Depart¬
has
now
rec¬
ognized this deficiency, and is be¬
ginning a study to find out just
what these gross investment
fig¬
amount to.
ures
which
many
mine in Chile
copper
Venezuela
was
a
No
mere
mostly
United States consumption as
prime example of international
trade, actually a preponderance of
private foreign investment is de¬
lor
a
the United
entirely, Outside
States.
That
is
much of the goods which
world
trade
to
say,
in
move
produced6
are
in
a
may
be,
what
but
the
some
gross
idea
of
the amount of the understatement
parison
may
with
come
from
figures
for
a
com¬
Jersey
Standard's investments abroad. In
to
that
$679
million
ported for all United States
re¬
com¬
international trade policy is vital
to our national welfare.
Whether
not
with
one
bipartisan
tion
and
sold
of
in
the
neither
from
duction
nor
that
or
other
by
world
com¬
capital
the
the
comes
country
country
of pro¬
sale.
of
The international petroleum in¬
dustry is the foremost example of
what private foreign capital can
do
build
to
from
one
up
the flow of trade
part of the world to
an¬
other.
Companies affiliated with
Jersey Standard, for example, did
acceptance
year.
business
The
was
great bulk
conducted
outside the
United
is," it
oil
was
of
that
entirely
States
produced,
—
that
trans¬
ported, refined, and sold among
foreign countries. Only a small
fraction of
our
than
particularly
in
they
the
Congress.
Yet unquestionably it is their
work which has, in
large measure,
been responsible for such
progress
as
have
we
made.
We
have
not
yet achieved
a
consistent, modern
foreign trade policy, in my opin¬
ion, but at least we have managed
to prevent
any
serious ruptures in
those policies which
Furthermore,
have had.
we
the
activities
of
these commissions have
helped to
educate American public
opinion
to the
point where it has a some¬
what greater
understanding of the
vital place of more liberal inter¬
national
trade
in
world
peace
than have
tives
I
in
of
some
our
sure
that
all
participating
Trade
sense
Conference
of
the
of
who
you
in this
have
World
deep
a
importance of inter¬
national trade to
and
representa¬
Washington.
am
are
our own
country,
peoples of the
to all the free
world, and will take
tunity to spread that
and
every oppor¬
word to your
associates
here
and
Lucky Stores Offer
Underwritten by Allen
& Go,
international busi¬
consisted of imports into, and
exports from, the United States.
Our concern with the actions of
Banking Group
Foremost Dairies, Inc. is offer¬
ing to holders of its
common
stock
rights to purchase pro rata,
630,000 shares of common stock of
Lucky Stores, Inc. at a price of
$11.25 per share, in the proportion
of
one
held
The
3:30
share
common
for
each
12 y2
Dairies
of
Lucky
shares
of
stock
common
of
record on Nov.
30, 1956.
purchase offer will expire at
P. M. (EST) Dec.
17, 1956. -
In
addition,
Dairies
each
common
Foremost
stockholder
of
record Nov. 30, is
being given the
privilege to purchase at the same
price ($11.25
per
share)
any num¬
ber ol such of the
630,000 common
shares of Lucky Stores
as
not
are
purchased through the exercise of
rights, subject to allotment.
$1.4 billion in international trade
last
their
disagree
recommendations ought
a wider
recogni¬
far,
so
Foremost
whose
all
certainly
to have received
foreign
by a company with
capital, and are distrib¬
and
I
few of them
myself—their
Stores
uted
with
agrees
and
—
a
host country
Allen
&
Co.
is
manager
of
an
investment
banking group which
underwriting the offering. -i
is
The
common
shares being- of¬
hereby are currently out¬
standing, and represent the hold¬
ings of Foremost Dairies, Inc. in
Lucky Stores as of Sept. 15, 1956.
fered
ness
our
which affect world
therefore, derives mainly
country
trade,
from the effect of these actions
stimulating
trade
all
over
on
the
world.
In this connection, I think that
the recent studies by the National
Planning Association of
tories
of
abroad
tion,
Lucky Stores, Inc., with its
private
both
here
case
his¬
investment
warrant the
and
widest atten¬
abroad.
The
story of Sears Roeouck in Mexico,
of Casa Grace in
Peru, ol Sun
ex¬
ecutive
offices in San
Leandro,
California, is engaged primarily in
the operation of a chain of 63
tail food stores in
California,
Francisco-Oakland
Los
Angeles
Bay
and
re¬
lo¬
in the San
cated for the most part
in
Contribution to Host Country
$679 million.
knows
one
pro g r a m s
exhaustively:
evidence, I believe, is con-<
elusive, that a liberal, consistent
peo¬
producing
to activities
Rock7^
commissions.
trade
iron mine
or
accom¬
Gray,
Their
ple do not realize is that, although
we
think of an American-owned
in
the;
<
abroad.
Private Foreign Investment
Outside U. S. A.
Another fact
""""
tribute
pay
Randall
and
recom-*
tremendous
*
eco¬
They have studied the problems
involved in our international
friends
investment outflow abroad in 1955
involved
solemn
as
investment outflow. No account is
controversy.
is
try
to
the
teller,
have
emphasize
the
If you have
seen them, I
highly.
*
of
views
between net and gross investment
because I think they are impor¬
of
to
was
con¬
to
advancement
Finally, I want to
again
not
invest¬
importantly,
cultural
already
or
military.
an
and
mend them
countries
aid
even
all
countries
'contrast
many
Asian
centrated. But I suspect that over¬
all private foreign investment in
panies
iigure
tract.
Although
much
reported figures of foreign capital
jeopardized.
is the whole
nationalization—it
breaking
several
investment by American
data,
contract
When
for
voted
Despite
by
formal
government's eco¬
assistance to foreign coun¬
where
penalize
most of all the people of the coun¬
the
a
true
in the private-enterprise cate¬
investment be negot:ated
with the government, and covered
government.
our
has been
Overseas investments, however,
important,
of
ment
capital
a
total
factor in the growth of
Ameri¬
in
of
by private United States
enterprises have far exceeded the
private
and depletion accounts, loans, and
so on.
On this basis in 1956, some
or
abroad
new
capital, whether
for
recent years^
investments
capital
with
tions, foreign exchange restric¬
tions, discrimination against for¬
eign ^capital in -lavor 1 of ••"local
That, it
months ended
30, 1956, the
operating
of
considered.
Power
&
Light Co., a
operating wholly
within the State of Texas,
is a
subsidiary of Texas Utilities Com¬
pany/and is engaged in the gen¬
eration,
purchase,
transmission,
distr ibution and sale of electricity.
The
company
supplies
electric
public
factors
more
investment in
of individual
with which
lor
many
country.
in
and
abroad, must take
similar
a
during the remainder of 1956 and
1957,
com¬
pany,
the
purposes.
American
an
actual
solicited for aid * for a project
which clearly would be done by
all of the restrictions
for¬ and
other problems confronting
eign governments toward United private capital abroad, however,
States private capital.
The man¬ a vast amount has been invested,
funds derived from its
operations,
by the company for
somewhat
portance
and
100.09%.
Net
the
diminish!
Unquestionably, in
the
ured
con¬
banking
an
however,
not
more
these
contributions
nomic
plishments
government is
im¬
of
Which
our
group, on
ager
believe,
our
those
"provide
foreign invest¬
by removing certain United
messages
Light 4%% Bonds
do
tween
mendations.
Offers Dallas Power
I
no-man's-land
invest¬
income.
inducement
been
chosen.
that whenever
great
abroad
such
nature
domestic
legislation based
Halsey, Stuart Group
of
their
of
success
ments, but
and
oil.
confronted
all
projects which obviously
income
The
con¬
alternatives,
contain objectionable features bui
from among which, one must be
are
were
ment
is
out
point
investments
States tax burdens
dividing it.
an
no
it
and
of
will
solution,
our gov¬
when
dustrial
mended
structive
easy
sympathize with
can
with
be
can
realize
harbors
It has.»-unique opportu¬
nity: to move forward on a road
that will unite the country instead
it
that there
businessmen
for
Commission
from
Wation.
of government
private capital presents
one of the most ticklish
problems
confronting our government.
I
versus
most
plant
search
tries. Of course, this applies
only
to the
totals, and clearly was not
Capital Y
to
benefits
ments
area
almost"
modernized
Commission phrased it, the
mature deljb-
aid
Latin
our-
spent
new
aid
to
and
This whole
v:
Private
versus
for
the
ity to regulate change according
experience
Aid
affiliates
equipment, and in the
nomic
designed to give speciat
not
that
brief
a
ancl
alone
year
$20.0= -million
that
to
Randall
be
that-
,
million, yet
discussing
were
the
could
efficiently by
more
in
American
$22
and its standard of living.
Rather it is the plants rebuilt and
reasons
nating-reading. They; explain
of the host countries.
minus
a
not, the interests of the
American taxpayer demand that
have
investments in the Philip¬
pines, und of our own affiliate^
Creole, in Venezuela, make fasci¬
only the
or
recommendations for tax revisions
that
United
sticking ex¬
year
can
proposals
and
believe
we
private
capital
investment
free competition.
ernment
if it does not make free enterprise
only
which
think
develop forward look¬
ing policies. If it fails to do this,
a
tives
attained much
on
negotiation.
Randall
investment
private capital, many
others still believe that
they can
getodorrg: without atp5or{ can sub¬
stitute loans orv gifts from other
governments to accomplish objec¬
and
been
must
■entered
the
foreign
the program of
guarantees against
in
close the gulf further.
of
recommendation, for extension of
ened conservatism
do much to
since
under
now
A
—tax
can
existence
Commiss
have, discouraged
recommendation,
a
understanding
are
the businessman has perhaps
come the longer way.
An enlight¬
ess,
Randall
force, four more have been signed
by the United States, and it is my
tribution of America to the world
ence, but the production of mate¬
rial wealth.
The businessman, as
fair
investment;
in
were
such
the
on
foreign
treaties
when-
the
.
rules
common
or are beginning to re¬
economic restrictions
which,
move.
"
Y'Yi>.
slowly,
the
Life's
1954. The pub¬
lished figures for United States
investment outflow in the petro¬
leum industry in Latin America
removed,
other
Treaties*
outside
year
Standard
$725 million
showed
in¬
also
is barely ac¬
intellectual as a
economy,
cepted ; by
States
countries, and fair treatment for
those investments.
' Y *: Y
Yl
a
the businessman.
and
We have the
-what
preoccupies
many conservatives as well as liberalsr-r-the conflict between the in¬
Jersey
some
States. An even'morq
01 Commission and
without
These
1955,
ample is the
great sacrifice of efficiency.
main
in
alone is risking
Fed¬
over
eral ' wherever- possible
I.8.Y-:.,
page
39
area
San
and
Diego
Counties.
In
pro
an
unaudited
forma
earnings
statement
for
the
of
3.9
weeks ended Sept. 30, 1956,
Lucky
Stores
and
subsidiaries
showed
that sales, less returns and allow¬
ances, aggregated
net
income
was
$65,863,847, and
$1,053,729.
40
The Commercial and Financial Chronicle
(2420)
Continued jrom page
thousands of policy holders in
22
ordinary casualty
of the
did not eliminate the
protection against flood
companies
Private Lending Opportunities
In Federal Housing Programs
for
need
losses.
Accordingly,
Congress
the patterns woven
varied
and
adverse decision
the
But
the
areas.
had
such
in
France.
thereby relieving the risk of losses from floods for many
Treasury of that financial burden, enterprises now located in areas
subject to flooding. In addition to
Refunding Into Privately Held
insurance, the program provides
Debt
for flood zoning restrictions which
The Administration has pursued may be required of communities
a similar policy of refunding debt
if insurance is to be made availobligations held by the Govern- able after June 30, 1958, and for
ment into privately held debt in coordination
with Federal flood
connection with the public hous- prevention programs. These mea'Svate market,
The Public Housing ures should operate to reduce the
Administration
arranged
with risk of flood damage generally.
ing program.
local
should
sell
private
refund
could
held
loans
by PHA
in operation,
the PHA
to repay about $200 million to the
Treasury. The established policy
is to have long-term financing of
public
housing projects accomplished by the sale of local housing authority bonds to private incompleted and
of
were
This operation permitted
vestors.
guaranteed by the amount
contributions, to prorent
subsidy, which
is
annual
vide
a
the
Administration,
an
pro-
experimental one. The
intention is to develop experience
the
contents
$10,000,
and its contents in
to $250,000.
We
am0Unt
an
0f
flood
a
rate
structure.
legislation
authorizes
also
to enter into loan
corn-
mitment contracts within the
same
agency
dollar amount limits
for insur-
as
sophistication
bidge's. He, too, was
think
j
it
is very
important to
satisfactory relations with the insurance industry
emphasize
the
borrower would obtain
a
And
The
insurance
v~-
yet,
textile
industry,
give business firms
companies made
wherewithal
the
financial
reestablish
to
.
first
automatic
water-
ancient Egypt, up to and including
the steam engine was slow. It was
slow
because
needs
many mass
Industry
over
there
weren't
markets.
or mass
hadn't
very
begun
churn
to
at the rate that it is
churning
today.
wasn't
buying
But
wasn't
there
power
above
all,
missing link that in¬
dustry now has at its fingertips—
a missing link that is making my
successful
company
link
that to
sponsible
missing
a
—
large extent is
a
for
the
re¬
modern
more
type of Automation that is going
in
on
industry.
your
I'm speaking, of course, of elec¬
tronics—electronics that has meant
capital, but also—and limits set for the insurance pol- more to me personally in the last
important—destroy the icies issued by the Federal Gov- ten years than any other single
buisness term—electronics which
Community Facilities Administra- insurance protection purchased by ernment.
'
tion makes interest-bearing loans
spells the great and brilliant new
from
a
revolving fund of $100
future for us in every industry
Continued from page 17
million.
The 1955 legislation au¬
from the defense of our country
permitted
to establish the inter¬
rate, and this is done through
est
a
reflects
which
formula
right
levels. The current rates are 3%%
for loans secured
by general obli¬
4%% for loans
gation bonds and
secured
by revenue bonds. These
loans are beneficial in educating
in
communities
small
nancing,
in
and
fi¬
debt
few instances
they could
from
private
the
applications
a
the communities found
obtain
their
investors
loans
when
had been properly prepared. Loans
are not made until after the issues
have been advertised, to give
vate
investors
pri¬
to
opportunity
an
of
Automation and Our Future
market
well
,
,
,.
•
u
debt
for
interest
the
a
automatic
than
this
with
Purdue
a
trial
project
at
University.
Federal Flood Insurance Program
Before
closing
I would
like
to
tell you briefly about another pro-
Enacted in August, it may
long-range significance with
respect to future security issues
gram.
have
of
many
The
nity
a
corporations.
new
be made at all.
made
it
less
would
if it could
a
gal-
Ion of
gasoline costs less than
one-
third
the
distilled
water
impossible!
.
.
.
.
The
market
.
.
gallon
a
of
almost
seems
.
answer—volume
and
.
of
insuring
nearly
petroleum
dollarg
1950
24%
production
and prices of
tripled
products,
of
the
measured
constant
than
will
in
purchasing
than 16% lower
market.
area
one
Al-
though at the very lowest part
it appears to be putting people out of work, this is an
illusion because through expanding the industry and cheapening
.
the
product,
it
has
usually
in-
creased employment.
proud
flour mil1 here in America.
the
This
and
power
were
broken
big reason for these accom¬
plishments is the fact that the
and
productivity of
were* carried
from
and automatic
bagging machinery
put this
into
twice
workers
the
rate
workers in other industries.
I believe the
answer
has
of
Why?
is obvious.
That's enough about the petro¬
leum industry. I hope too much ot
it hasn't been repetitive to you!
Wherever
one
mation in the
has
found
Auto¬
livered
A
one
has always
.
flour
it
man
to the
—
chine
the
Survival
do not
we
big machine to run
another machine. Today, we build
a
small machine—the
very
mys¬
run
electronic
of
Millions
little
in
the
machine to
run a machine is now practical for
quite complex applications.
Now just take a quick look into
the future.
I am sure you have
boxes,
looked
the
into
in
the
and
selves for your
are
no
future
your¬
industry is leading
applying
machines to take
power
and
jobs which
over
longer the type of jobs that
humans
or
effectively or eco¬
even
with dignity
or
not
can
nomically
flour
Whether
de¬
and
—
computer ma¬
basis
in
keep
we
standard
of
living
standard
of
up
our
—
the
highest
country in the
our ability to
produce more goods with rela¬
tively fewer workers. Even the
on
survival of America
tion
automatic
punch
output, and to
worked
like
of
operated
puters
In
on
France,
a
an
oppor-
in 1801.
more
money
by
com¬
except
an.
Marie
Jac-
automatic loom
This loom
punched
input
that it
mechanical basis.
—
Joseph
gives the manufacturer
card
paper
We
large degree
electronic
the
today
a
was
cox.troxled
cards
which
than any
plant
depends
are
tential
great
as
a
free
na¬
our
on
ability
to
outnumbered by our po¬
enemies.
military
They
strength,
command
perhaps
many
vast rich
an
last 100 years, the average horse¬
behind
power
worker
in
million
in
the
U.
t, h
half
production
manufacturing plants
S.
electricity
hind
American
increased
400%.
every
has
Thirteen
with
and
maximum
steam
be¬
power
ir
tools
produce
the
total
manufactured
e
of
one-
goods in the world—170 million
people producing as much as 2M»
billion.
This huge power applica¬
our industrial workers
tion behind
adds
dignity to their jobs, makes
more
effective, and enables
them
them to
earn
greater pay.
the
great advantage, and
it at all costs.
This is
American
use
of Americans.
This is the way we are unbeatable.
This is our ace in the
hole, our
must
we
preserve
So I think
we
may
to the
come
conclusion that while Automation
once
may have been a luxury, a
profit-producing luxury to be sure,
it
has
become
an
absolute
neces¬
sity throughout American industry
today.
Will
Put
from
Far
work, it
People to Work
putting people out of
even
possesses
the possi¬
bility of reviving dying industries.
Nobody has seen better evidence
this
than
miners.
The
of
the
anthracite
high
coal
percentage
of
mining labor to the cost of coal
very nearly wrecked their indus¬
try, putting thousands of miners
out of work.
Then
machine
a
invented to do the work of
a
was
dozen
miners, and the anthracite indus¬
try is able to compete once more.
Some of you in the heating oil line
already know this. Thus, only
may
nortion
a
of the
displaced.
miners
being
are
r
is not going to
large numbers of Americafts
take
of
their jobs, but there is *a
possibilitv that Automation
out
real
will
supply of
raw
materials.
Why are we not overtaken by
our
enemies?
The answer, I be-
the
take
ards—the
jobs for
drudgery—the haz¬
noise—the
dirt
of
it,
will
out
Rather than
Americans.
fear
one
perhaps working people
day come to know it as
the Great Emancipator.
Perhaps
all factory jobs will have become
white collar jobs and we in Amer¬
ica will have taken another giant
industrial step forward.
shorter
A
work
is
week
prob¬
ably in the next decade. Longer
vacations, of course. Higher pay—
yes, but
higher profits, too, be¬
cause
output is proportional to
incentive.
Invention
and
frontier
Our
the
been
innovation
frontiers of
the
now
Frederick
torian,
wrote
had
that
our
are
country.
spirit has, I believe,
principal
reason
America's progress.
for
The late his¬
Jason
Turner,
Western
the
frontier
developed that quality.
"The
challenge of the frontier," he de¬
"was met and the result
clared
a
population steeped in self-
reliance,
ingenuity,
patience
and
energy."
How did these
peculiarly Amer¬
survive
after
closing of the frontier?
Pro¬
characteristics
ican
the
they would al¬
fessor Turner said
ways
new
survive
"a
.
of
new
.
.
as
frontiers.
realms
planes and more subma¬
rines than we possess, and the hy¬
drogen bomb.
And they have a
as
in
is
physical manpower is the princi¬
pal form of energy. Just in the
any
world—depends
in
fold
employee
equal to 250
anywhere in the world where
was
undertake.
Babbidge
automated
of
stored
be
can
other
produce.
and
.
bags
a
machines
very
a
early 1830's. This machine had
provide
tunity to invest still
need
grinders
the
called
an
on
types
to
shipping floor.
England designed
an
past,
found an expanded industry if the
Automation has been successful,
This is because of a rather simple,
economic cycle. A product is pro¬
duced at a lower cost
more
Various
grinders.
conduited
was
ma¬
machines.
farmers' wagons, carried it to the
grain
Our
Assures
instructions
is not always successful. It
must be used in the right place
and at the right time. In 1784, a
man called Oliver Evans, built a
the
other
run
Now with electronics
America
very
the
and
terious "black box"—to
floor where the sacks
at
to
conveyors took the grain from the
in
wheels,
might .well have been bigger than
the factory itself.
Water furnished
you
A
increased
chines
A terrific
of.
oil
and
of
...
industry must be
colossal collection of rods,
a
all
1925, in spite of
rise in the price of crude
which everyone
been
gears
of the scale,
Peo°le can buy the product, which quard invented
the
so
of unemployment.
Indem-
against
And
single
No—Automation
manufacturer
enough money could have
built
an
automatic
factory
for
some products.
But it would have
years ago, a
flour mil1 was Just about as automated as any mill can be today,
in
in constant dollars.
record
product
automated
years,
power, were more
in
the
Automation in Past History
In the last 25
hag
the
ening
of
lower and again broad-
in the
...
of
the cost
even
could call Automation self-curing
I hear that
price
bringing
down
methods, thereby
several
American
homes.
our
Fifty
much
as
without Automation
turn
in modern plant
through to the operation
on
with
semi-auto-
and
costs
much
as
the
.
Federal Flood
Administration
means
half
compared
at
Gasoline
processes
a
rate of 2%%,
interest rate has
precluded private financing, even
for a part of these issues, we are
now developing procedures under
which private capital can be at¬
tracted
to
supply part
of
the
money needed to finance some of
the housing projects at large uni¬
versities. We have just been suc¬
cessful
century.
matic
was
Va of 1% for administration.
Although
tenth
a
under
•
U
changed to provide
plus
than
the
of
in
financing has been going on
under
the
college housing proWp hsH rWplnnpH snhst.angram. We had developed substan
tial
private participation under
this program until the statutory
formula
less
to
nation's
process!
A similar educational process
,
the
of
present energy supply,
.
make them.
half
over
One
one
more
program
horsepower be¬
American worker by
more
of
other worker in the world.
.
company's
the agency
is
every
factor
one
the
Today's
thorizing this
There
hind
driven, water-pumping stations of
available.
most
even
the world.
.
.
The development of automation
from
their
a
Today, America's workers,
as
they are, still pos¬
greatest lifting power in
the
sess
workers
the Jacquard mill in
where there
was
great
demand
and
where
there
was
enough
turnover
of
money
so
that the cost of the
Automation could be justified, was
the
Govern-
ment loan.
The legal maximum
interest rate for such loans is set
and to
Views
mand.
ahead
way
of his time!
...
held
agencies to finance the construetion of needed public works, the
precision and
computer of
of Mr.
Bab¬
a
the
thorough study. They rec¬ operations quickly in the event
by PHA was reduced from ognized the importance of finding that they suffer flood damages,
$620 million at the end of 1952 to a way to indemify flood victims;
A third phase of the program
$12 million at the end of 1955. At the same time they could not provides for reinsurance of flood
Over the same period the amount find a formula that would fit both insurance policies issued
by priof the short-term loans to local the needs of potential victims and vate companies.
When this phase
housing authorities held by pri- the companies. Briefly, the com- of the program is developed it
vate investors increased from $313 panies
decided that insuring may serve to make flood insurmillion to $753 million.
against floods would not be a ance available to homeowners and
In another program, to aid local proper risk. A single catastrophic business firms who seek insurance
communities
and
other
public loss might not only wipe out a for amounts in excess of the legal
notes
short-term
such
of
the
of
.
The
investors.
private
amount
the
to justify
pace
.
financing held by PHA with notes
to
achieved
not
the
insurance
science
and
Jt\
no
stronger than its in¬
dustrial tools, no stronger than the
lifting power its workers com-v
men
way.
early 19th Century in England had
the develop¬
on
its
pay
-Business
are
up
presently working
to
business
or a
clarify the reasons why the at 4%.
pledged by the Federal Govern- Government, rather than private
The loan contract is intended to
ment.
carriers, is taking the lead in this provide a supplementary form of
We
have also
been successful field.
financial aid, with the difference,
in replacing most local authority
of
course, ,that
the loans made
Private Insurance Industry's
would be repaid.
temporary notes for construction
The loans will
sold
milling did not have much
did not have the margin it needed
or
LCUllIlUlUgy.
is
a
corpora-
property
Gur
where the need had not just
Flour
ixmci J«_clU
nation
proc¬
yet justified the expense.
it will be pos-
person,
am0unt up to
The
of
xxv-vc,
labor in it anyway so Automation
any
to
ment
In-
Flood
Automation
Thursday, December 6, 1956
.
.
outnumbered
insure a home and its
against flood loss in an
for
uon,
Federal
program
a
Babbidge's
failures because
were
were
esses
Under
on
to demonstrate the feasibility of ance>
Under these provisions
a
having private industry
subse- horbeowner or businessman would
quently take over this insurance be abie to obtain a contract, for a
operation.
In the operations of feej assuring him of a loan to the successful
beyond
the
wildest
the program private industry fa- extent of the flood damage he hopes of its inventors
and so
it
is
successful
cilities will be used to the greatest suffers. Such a loan may be made sometimes
practicable extent in selling and
a
private lender and guaran- and sometimes it is not.
And now, a word on develop¬
servicing policies and adjusting teed by the agency; or if a guarclaims for losses.
anteed loan is not available, the ment.
The debt service on these
bonds is
of
the
they gram is
projects which had been
some
on
that
so
to
bonds
and
notes
investors,
with the wishes
In accordance
housing authorities that they
they
demnity
Automation
.
Evans' flour mill and
computers
gram.
.
.
grand scale 150 years ago!
very
experimental
pro-
im¬
pact, that by 1812, 11,000 of these
automatic looms were operating
passed the law which,, as I have
already remarked, provides for an
Government
at will
tremendous
a
.
long
there were
as
He wrote about the
and
science
generation
of
predicted
explorers"
scientists if you will.
His
prediction
has
come
true.
No
major U. S. industry has grown
up
faster
than petroleum, where
pioneering spirit—a desire to
explore the frontier—has always
been overly abundant.
This same spirit burns just as
a
I
•
Volume
184
Number 5592
brightly in the
If
it
did
not,
wildcatters
no
.
^e. tidelands
OI?
pipeline
-
The Commercial and Financial Chronicle
.
be
Continued
from
4
page
(2421)
..
.
>'
.
same
Industry
industry,
lieve, wity allow
mation
that
to
us
will
to
be¬
I
ment of
in
reached
sharply
An America
in which the work of
the individual is ever more chal¬
lenging and
America
higher
above
.
x
the
America
strength
well
<
$30,100,000,000 of goods
high of $28,500,000,000
with
the
vital to
so
our
being.
-
well
per
In
business for manufacturers set
the
automotive
production
the
industry, United States car makers sched¬
week a^the highest level of 1956,
Chevrolet, Ford Division and Cadillac definitely pro¬
gramming Saturday operation and Mercury and Chrysler Corp.
divisions contemplating it, volume was
sighted at 153,553 cars.
"Ward's"
pointed
out
that
the
figure
tops
1956's
previous
weekly high of 149,995 autos, set Jan. 9-14, by 2.4%. Also booked
week
by 1971,
All
23,236
were
trucks
for
total
a
vehicle
count
of
units. This compares with 136,245 vehicles—118,949 cbrs
17>}296 trucks—built during last week's aboreviated Thanks¬
giving Day session.
^
Division
and
Chevrolet, this trade
are
battling
strongly for 1957 mbdel production honors.
With
13
assembly plants set for activity on Saturday, Ford anticipated
cars turnout at 39,400 units the
past week compared with a 38,000
total for Chevrolet, with
10 plants operating Saturday.
Thus,
the two firms accounted for
exactly 50% of last week's industry
yield.
for
Nov.
Geo. S. Payson
mittee
James
H.
Goddard
No.
14
setts,
New
Island
and
Hampshire,
Rhode
Vermont) of the Na¬
tional
(Maine, Massachu¬
Association
of
Mr.
-
Goddard
founded
the
in¬
his
in
name
member
1925.
the
of
Committee
and
Committee
of
the
the
Nominating
Boston
of
Chairman
as
Governors
Club
of
of the
and
Stock
has
years
of the
the
of
Boston
Hamilton
a
Constitutional
Exchange and in recent
served
is
He
Board
University
as
a
Trust
Boston.
than
May of this
Quarter Century Club
employees who completed
years' service during the past
became
year
members
of
the
nual
dinner.
were:
A.
The
Mrs. Rita
Severin,
Grover
S.
an¬
members
new
Ewald, Miss Edna
Adolf
Lyons,
Juergensen,
Franklyn
Of
220
employees
in
the
panies, 43 are active members of
the 25-year club. Oldest member
is
Herbert
man
S. Bachman, a Selig¬
employee for 58 years. J. & W.
Seligman & Co. is
est
investment
and
Union
the
organization
investment
istrative
one
of the old¬
brokerage
firms
is
Service Corporation
which
research
services
to
furnishes
and
admin¬
four
companies, Tri-Continental
Corporation, Broad Street Invest¬
ing Corporation, National Inves¬
tors
Corporation and Whitehall
Fund, Inc.
CHICAGO,
111.
Hambourger
the
staff
pany,
of
has
been
year,
classes
of
last
it
Boettcher
and
to
Com¬
Form Crook & O'Neall
FT. WORTH, Texas—Crook &
O'Neall, Inc. has been formed with
a
316
Bailey to engage in
securities business.
Curtis
Officers
E.
hour
Bethlehem
4,500,000 tons.
over
the
of
upward
November.
increase
in
a
practically certain three-cents-an-
steelworkers'
wage in January, resulting from
cost-of-living index. Index adjustments are
annually in the labor agreement.
Scrap prices have broken another record for the third con¬
secutive week.
"Steel's" price composite for steelmaking scrapi
shows a record $64.67 a gross ton for the week ended Nov. 28*
up $2.67 from the preceding week.
•
the
uptrend
provided
the
in
for twice
The
American
Iron
Steel
and
Institute
announced
the
that
operating rate of steel companies having 96.1% of the steelmaking
capacity for the entire industry will be an average of 100.5%
of
capacity
2,473,000
the
for
of
tons
week
ingot
beginning
steel
and
The
Industry's
annual
on
For the
duction
ingot
like week
A
place at 2,416,000
was
(revised)
rate
for
a
tons
or
week
100.1%.
ago.
weeks
in
195S
as
of Jan.
1,
1956.
100.1% and
the actual weekly
ago
percentage figures for 1955
828,310 tons
of Jan.
as
based
are
pro¬
production
The operating rate^is not
annual capacity
on
The
of 125,-
1, 1955.
Electric Output Registers New
Week Ended
In
to-
with
the
of 128,363,090 tons
year
equivalent
compared
as
month ago the rate was
a
2,463,000 tons.
1956,
castings
production
capacity
3,
Dec.
for
101.1% of capacity, and 2,489,000 tons
is based
Dec.
Ail-Time High
1, 1956
distributed by the electric light
industry for the week ended Saturday, Dec. 1, 1956,
estimated at 12,075,000,000 kwh., an increase above the week
ended Nov. 24, 1956* according to the Edison Electric Institute.
The past week's output rose 636,000,000 kwh. above that of the
previous week, registering a new all-time high since the week
and
power
was
ended
it
Dec.
1955
and
24%
some
in
when output reached 11,614,000,000 kwh.;
kwh. or 6.3% above the comparable 1955
2,463,000,000 kwh. over the like week in 1954.
24,
increased 716,000,000
March
and
Car
Loadings in Thanksgiving Day Week Ended Nov.
Fell 14.8% Under Prior Week
Loadings
of
freight
revenue
for
the
week- ended
Nov.
24,
1956, which included Thanksgiving Day, deceased 112,956 cars ov
i-t.o% beiow tne preceding week, whicn included Veterans' Day.
There
tion
at
44%
was
lower
than
rate
October failures increased 27%
higher
more
exceeded
was
than
a
year
than
numerous
in
two
in
$50,-
these
was
and
with
peaks
in
failures
above the
from
in
varied
in
in
failures
retailing
increase
an
a
degree.
1955
level,
in
in
and
all
10%, whereas trade and
year-ago levels by 32% to 34%.
Regionally,
More
failures
rose
businesses
in
any
construction
in
all
construc¬
size
to
rose
classes
rather
a
failures
all
succumbed
except
areas
in
the
West
the
Mountain
South
934.971
Dun
Central
months
of
remained
at
permit
an
values
all-time
level
for
first
the
government
tighten
the
requirements
squeeze
on
and
totaled
$5,-
quarter
United
products,
by
the
states
Suez
"Steel"
outlays
in
the
States
coming
fiscal
year
expected
are
to
rise noticeably,
with some $2,000,000,000 of the increase going to
If world political conditions continue to deteriorate,
expenditures will probably be still greater, it observes.
the
military.
Demand
terrific.
pressure
Some
122,250
from
railroad
railroad
cars
Reports,"
car
are
builders
on
order
for
as
plates
is
Nov.
1.
of
at the highest level of
set
was
the
Last week's
car
output advanced beyond that of the previous
cars, while truck output rose
week.
In the corresponding week
and 28,532 trucks were assembled.
during
cars
34,604
by
in
the
by
the
United
States.
vehicles
6,040
last
year
177,712
reported there were 23,236 trucks made
compared with 17,296 in the previous
This
week and
28,532 a year ago.
Canadian output last week was placed at 8,960 cars and 2,067
In the previous week Dominion plants built 8,575 cars-
trucks.
and
2,171
trucks
for
and
the
comparable
1955
week
6,624
cars
and 638 trucks.
Business Rose to
Highest Level in Four Weeks and
Greatly Exceeded Like Period
Commercial
and
industrial
failures
Year Ago
a
254 in the\week
preceding week, Dun & Bradstreet,
level in four weeks, the toll was
considerably above the 209 a year ago and the 221 in 1954, and
only 4% beiow the prewar level of 264 in the similar week of 1939.
Failures with liabilities of $5,000 or more increased slightly
rose
to
ended Nov. 29 from 207 in the
Inc.,
At
reports.
219
from
192
last
this
size
in
of
171
the
liabilities
under
Liabilities
week's
in
excess
failures
The
as
week's
lines; the
toll
wholesalers
to
highest
week
1955.
$5,000,
week, they were not
military requirements
will go up slightly, with alloys and stainless steels, wire products,
nickel alloys and aluminum being chiefly involved.
Alloy needs
are expected
to rise 2%; stainless steel, .12%; wire products, 9%
and aluminum, 2%.
Federal
Automotive
industry assembled an estimated 153,553 cars,
compared with 118,949 (revised) in the previous week. The past
week's production total of cars and trucks amounted to 176,783
units, or an increase of 40,544 units above that of the preceding
week's output, states "Ward's."
to
stimulated
steel
magazine, the metalworking weekly.
first
latest week ended Nov. 30, 1956, according
ten
Steel Production Estimated the Current Week at
said
Output Scheduled Last Week at Highest
Last week
v
building
315,833,970 for the 217 reporting cities. This compared with $5,144,338,967 for the corresponding period of 1955, or a gain of 3.3%.
It
Car
"Ward's
$
'
1956
will
S.
1956.
&
aggregate
of
1954.
Last week the agency
Bradstreet, Inc., reports. This was an increase of
for October, 1955 and a gain of 0.7%
over tjltf
September figure of $526,234,213.
New York City building plans filed
during October were
valued at $72,251,619.
This was up 63.9% from $44,087,975 for
October last year, but it was down 25.3% from the $96,679,762
The
to
month since 1940.
above the $487,392,751
September.
24, 1956, totaled 650,920
below the corresponding
11.6% above the cor¬
3.1%
or
Level of 1956
exceeded
The valuation of building permits issued in 217 cities includ¬
ing New York during the month of October amounted to $529,-
for
U.
week
in
Nov.
ended
bars
increase of 67,400 cars, or
an
responding week in
all
year
ago
prevailed in most
Commercial service casualties
manufacturing,
mild
8.7%
but
comparable month
industries.
but
than
increase
Failures
groups.
postwar
two
1%
month-to-month
a
trade
Increases
edged
week
decrease of 21,030
a
months
Failures
ago.
the
to
earlier
Loadings for the
1955 week
Car output for the
reached
states
somewhat
a
year.
industry
are
Crook, President; Fred¬
erick
B.
O'Neall, Vice-President
and Secretary.
1,158,
than
100.5% of Capacity
135 South La Salle Street.
offices at
toll
10,000 businesses in 1940 and the 73 in 1939.
were
'Rising
N.
added
occurred
While this volume
size
crisis
James
—
Failures
The liabilities of the
004,000.
With Boettcher & Co.
(Special to The Financial Chronicle)
of
Homer
B.
cars,
invest¬
ment
boost of
average
intensification
means
Adding fuel to the fire is
year.
the 67 for each
States.
com¬
A.
fluctuations.
R.
Markey and Joseph P. Mendres.
for
the Association of American Railroads reports.
industries,
club's
authorized
or
way
of failure, as
reflected in Dun's Failures Index, was
higher than in preceding months.
The index extends
monthly casualties to an annual rate and is adjusted for seasonal
ice
the
numbered
smaller
a
rate
in
at
in
week
week
October
slightly
Quarter Century Club of J. & W.
Seligman & Co. and Union Serv¬
Corporation
in
September, but
Up 26% from a year ago, more concerns failed
October since 1939, when there were 1,234 casualties.
Reaching a new postwar high of 53 failures for each 10,000
enterprises listed in the Dun & Bradstreet "Reference Book,"
the
under
capacity.
ingot
annual
an
this
than in any
Six
25
*
failures
in
this
Join
last year.
Business
Trustee
of
Car building is
pace.
behind
more
vestment securities business bear¬
ing
noted
also
that
domestic
producers built their
•millionth truck pf 1956 a week ago on
Monday, Nov. 26. However,
truck turnout remains 12% off last
year's
Securities
Dealers.
28.
"Ward's"
29%
is
the next three years at a cost of $300 to $400
over
The amount of electric energy
Significantly, said "Ward's" Ford set a postwar division high
single-day car output by producing 7,370 units on Wednesday,
-
long-term expansion plans,
producers may aggravate
comparable becausa capacity is higher than capacity in 1955.
declared,
paper
con¬
pressure on the
price structure.
"Steel's" finished steel price composite,
however, has been holding at $137.66 a net ton since the first
176,789
and
Ford
much
being
steel
past
With
last
is
result,
a
in reinforcing steel, "Steel" notes.
up
annual
of
ton
said
"Ward's Automotive Reports" stated on
Friday last.
for
work
Steel Co. believes ingot capacity of 200,000,000 tons will be needed
.
uled
some
construction.
As
steel "expansion
Currently,
was
price rises played a large part
in October's high level of activity.
"Price increases were more
important than higher volume," said one, "but there was some
volume increase, too."
He interpreted the report to indicate "a
very
strong position for manufacturers both now and in-Ihe
next couple of months." 1
To NASD Committee
BOSTON, Mass.—James H.
Goddard, J. H. Goddard & Co.,
Boston, and George S. Payson,
H.
M.
Payson & Co., Portland,
Me., were elected to District Com-
on
for construction steel from the
$27,700,000,000 volume and
in October of last year.
September's
of $27,800,000,000
of. structurals,
the, supply
delayed, and
concrete
With steelmakers enlarging their
15 million tons
Department economists
national
Goddard, Payscn Named
or
the tight supply situation.
rose
of business compared with $28,100,000,000 of new orders
received in September and $28,200,000,000 in October of last
year.
industrial
gestion is building
also
October
influx
all
An
under construction
are
in
being
is
reinforced
to
volume
The
year.
The department said new orders totaled
increasingly
of
living for
an
standard
from
this
of
a record in
October, too.
$29,500,000,000, surpassing
previous high of $27,800,000,000 set last June. The October
.
.
March
sales
New
important
more
with
in
congestion
building
proposed
diverted
demand
agency said manufacturers sold
October.
This topped the previous
with
ica for all—
An
Commerce reports.
The
better Amer¬
come a
new orders during October advanced
highs, aided by rising prices the United States Depart¬
record
Auto¬
use
wisely and well. And
use
Manufacturers' sales and
'
of
Bechuse
The State of Trade and
„
no big-inch
derricks at
spirit, duplicated in
American
every
tankers
Twenty-three
41
order.
Abadaban.
This
each.
tons
,
.
no
drilling barges
no
...
.
industry today.
there would
.
.
oil
.
Fise
were
climbed
to
numerous
of
$100,000
against 21
among
29
as
and
Although
was
a
noticeably higher than the
small
35
as
last
concentrated
19
and
previous
when 38 occurred.
20
by
of
the
ago.
in
retailers increased
from
year
involving
the
in
15
incurred
were
week
casualties,
from
the
to
trade
129
and
from
96,
service
among
commercial service to 20
However, manufacturing casualties were unchanged at.
39 and construction dipped to 37 from 40.
More businesses failed
than last year in all industry and trade groups.
from
among
14.
Four
geographic regions accounted for the heavier toll during
In the Middle Atlantic States, failures rose to 93 from
66, in the Pacific to 68 from 47, in the South Atlantic to 19 from
the week.
Plate pressure
81
tankers
will be intensified if approval is given to building
being proposed, including three of 100,000 deadweight
Continued
cn
page
42
'
42
(2422)
The Commercial and Financial Chronicle
Continued
from
Despite an increase in the buying of household
furnishings
last week the dollar volume was
slightly below thajTpf the similar
1955 period.'
'
41
page
The State of Trade and
12
and
in
While
Industry
and
Casualties
North
England to
exceeded
Central
in
centered
the
States.
the
from
13
level
1955
in
The
South
West
sharpest
Central
all
from
Mountain
and
Total
the
This brought the current figure to the highest since
5, when it registered $6.18, the peak for this year.
The
index compares with $5.99 on the corresponding date last
year, or a gain of 2.8%.
April of 1952.
The index
week earlier.
to 299.96
rose
It compared with 275.87
Grain markets
level
the like date
a
298.23
embargo
grains,
demand from
particularly on wheat,
foreign countries.
on
a
of
a
a
substantial',
I
all
grain and soybean futures totaled about 48,800,000 bushels
against 65,900,000 the previous week and
34,900,000 bushels in
corresponding week last year.
the
Domestic
bookings of hard wheat bakery flours remained on
basis with
only scattered purchases developing
among trade in early need.
Export demand continued quiet with
no
indications of improvement
despite the reopening of strike¬
hand
to
mouth
bound ports.
Coffee
prices
advanced in active trading.
Support was at¬
downward revision of the Department of Agriculture
drop estimate and Columbia's decision to support
coffee through purchases at a much
higher level.
tracted by
world
Cocoa prices rose
sharply under aggressive commission house
trade buying, reports of
improvement in manufacturer de¬
mands and the belief that
consumption will increase with colder
weather.
Warehouse stocks of cocoa were lower at
307,988 bags
against 319,512 last week and
compared with
Lard
price
continued
274,711 bags last
stimulated by strength in
upward,
vegetable oils and a sharp upturn in
hog values which rose to a
top of $16.75, as compared with $12.25 a'year
ago.' Small receipts
and a higher wholesale
pork market were factors in the advance.
..
Spot cotton prices
-
in most
were
generally steady with trading active
markets.
cover¬
in the'
dock workers' strike.
The CCC sold
423,000 bales of cotton on
Nov. 13 under the
export program. This is reflected in last week's
reported purchases in the 14 markets which totaled
540,500
bales,
as
against 477,200 in the preceding
week, and 222,400 in the Cor¬
responding week a year ago. Cotton ginnings prior to Nov. 14
season
Bureau,
totaled
as
11,113,000
compared
11,285,000 bales
bales,
11,421,000
with
to the
same
according
bales
a
to
the
Census
earlier
year
and
In Latest Week
Sales
inventories
passenger
1957 models
of
cars
were
pliances decreased somewhat.
The total
on
dollar
volume
Wednesday of last
year
ago,
gional
year
continued
limited;
climb,
volume
in
of
retail
was
from
trade
3%
in
the
below
and
dealer
major
1%
above
according to estimates by Dun &
Bradstreet, Inc.
estimates
varied
from
west
4
to
and
to
There
0; South
Pacific
was
to
—1
Coast
ap¬
period ended
to
the
comparable
—5
1955
levels
a
to
Best-sellers
+1%.
Volume
in
apparel
were
were
fractionally below
to
mounted
comparable
1955
topcoats and sportswear.
glassware,
appliances continued
the
kitchen
utensils
and
the
electric
expand.
While interest in
television sets and automatic
laundry equip-'
ment
rose
somewhat, the buying of
refrigerators and freezers
dipped moderately.
week
was
period
stay on the
required
for
a
the
and
a
time
crecm,
economic
24,
1956,
decline
a
to
side lines
deliberate,- calcu¬
being all the
money
sustainable
for
neeueu
the
growth.
additions
Any
supply now would
merely blow up the price level
and further depreciate- the pur¬
chasing power of the dollar by
of
money
furnishing the means to increase
bidding for the materials anil
1956 to Nov. 24, 1956
above that of the"
corresponding
rise of 4%
a
To
so.
'
-
four weeks ending Nov.
For the period Jan.
1,
the
services
ized.
-
...
already being fully util¬
:>;lJ
/
■
"i
v,'
V
ex¬
pansion at this juncture would be
certain, in
instability.
opinion, to lead tot
because of tight
my
If
?
money some demands
need
to be
our
reason
be
;
"
Now let us
of
the
look.-at,the other side
equation—the
Our
money.
demand
is
economy
for
fairly
bursting with enthusiasm, almost
everyone
is
ontimistic
and
feels
must
we
recognize that the great
demand
jjiuviuiiij;
t.ACj'
and
money
\-'ai±
k/oI'LUW
tiie
the
monthly carrying
charge fits the budget. Total con¬
sumer'credit
billion,
though
been
a
1955.
rate
be
which is
over
$40
high
al¬
increase
1956
-
means
expand
our
consumption, our
govern¬
servicesFeaerai, state
and local—faster than our
capaci¬
ties, for doing so permit.
^
t h
1,100 000 v*
a n.
new
constructed
this
reduction of 200,The reduction took
mostly
in
the -lowest
cost
houses and with
rising prices the
1,100,000 will cost almost as much
the
as
greater number that
constructed
and
year;
and
the
furnished
demand
mortgage
high.
sale
trucks
ever,
by
1955.
It
The
gain
are
last
for
credit
resi¬
is
still
automobiles
down
from
big
a
how¬
year,
but
sell
to
a
Great Demand for Funds
Major
Cause of "Tight"
Money
Business expenditures for
plant
and equipment will
probably
year.
billion
$35.3 billion for the full
This
is
over
increase
an
the
1955
of
$6.6
spending
on
the
military
estab¬
for
manpower,
jets,
guided missiles, H bombs, etc., at
a
rate
of
$40
billion
a
year.
We
keep three million persons in uni¬
form, thus depleting the civilian
labor force
dampen the demand
for
on
the
the other,
of their
hand, ajbd,
one
services.
The
on
plants up
our
-
J.
Effects
of
New
-ment and
Plant
and
Demand
Equip-
for
Consumer Credit
}
;
-
-
firms
adopt the most modern low
cost methods or be hard pressed,
must
by competition.
resents
In effect this rep¬
of capital
substitution
a
for labor.
Our
growing population
good wages and more leisure
seems to have insatiable de-:
with
fime
Let
funds
textiles and farm machinery where
capacity
now
fully
seems
Steel capacity
ade¬
by contrast
,
is booked for months ahead.
me
digressffor just
this
on
matter
People
haye
of
been
a mo¬
interest
accus¬
tomed to low rate$ for so long that
low rates are taken for granted
are
keep building, plant
we
capacity will outgrow its markets:
We have a few' industries such a£
quate.
stimulate savings.
assumed; to
be normal.
to fqrget that for 20
seem
interest rates
deliber¬
were
The
greatest danger to contin¬
plant expansion is the wage
spiral and the squeeze it puts on
corporate profits. One of the scare-;
est
things today is labor, using
-
ued
that word in its broadest meaning.
If
examine the want
will but
one
ad
section
of any
ately kept at artificially low lev¬
els by
pumping extra money into
the cr# it s^st.^mi wi+h the
daily paper he
y-iU be. imDressed by the intense
that during those 20 years our dol¬
lar
lost
half
of/its
purchasing
raid
The war,V of course, was
partly responsible.
This was a
frightful price tokpav for the. al¬
is not limited to the United States.
leged benefits of low interest rates.
There is
no
The experience distorted our per¬
increase
in
spective.
little
power.
If
rates
as
those
rate.
Suoerimposed on all this private
activity the Federal Government
is
existing conditions will tend
to
years
hjgh demand for credit.
amount to
under
yet
the
-•
tually, if
People
they
bring all of
**
sires for goods and services. Even¬
a
and
throughout
This,
regulatorfcetween supply
And demand, higher interest rates
as
re-
well
to
to date.
tion
new
is
lion
my opinion, is as it should be.
By permitting the market to func¬
it
with, the
models
early to know how
duce
higher rates of interest.
re¬
In any event we may expect
volume of sales which will oro-
a
demana for funds to express itself
in
rates.
its stride
to
"permitting" the;
in
research work which is
continually developing new proc¬
esses and new products.
It would
require an investment of $136 bil¬
/ With? rising/wage -rates,
-
Board
has done, and rightly so, is to re¬
the pressure to interfere in
the market,' thus
ment
was
Federal Reserve
plant and equipment is accel¬
new
erated by
V;
sist
the
standards prior
industry iexpects to
going
Interfering in {the Market
What the
by about two mil¬
any
1957
V
to
1956
was
year
lion units.
too
of
were
facilities and
Federal Reserve5! Right in Not '
■
has
a
000 from 1955.
place
of
in
About"
will
at
all-time
new
the
slower:•
homes
year,
stand's
func(s is the major
That money is tight
simply
that we have been
trying
cause.
to
for
secure in his job.
People do not productive
hesitate to buy
anything they want" mental
lishment
small
*
past
similar
situation
money
lated policy decision by the Board*
In its judgment the market has
'V,,'-"'
7*"'
the
the
do
has
1956,
24,
this
reverse
•
Re¬
an
considerably, they
Nov.
mind
my
know-how
prosperity should
more enduring.
in terms of the funds
entrusted to Federal Government is also
If I interpret the objectives of the
en¬
them for investment.
Pension gaged in legion other
Federal Reserve Board correctly,
spending acfunds which are an
important; tivities which carry 'the total Fed- ? it is precisely to avoid the severity
source of capital accumulation
are
of the adjustments that have in
eraFbudget to $66 billion.
•
/ *
also
setting new records from
the past followed unhealthy boom
Finally in looking at the de- i
month to month.
Finally, on the mand
,/
*
picture there- remains the periods.
supply side, depreciation allow¬
sector comprised of states and loHaving thus described some of
ances
and
retained
earnings. of cal units. Here the
the reasons for money being tight,
need for funds
corporations, are now at new all- to
let us now consider what changes
build schools,
hospitals, sewers,.
time highs.
if any are likely to bring about
wacerwofKS, eic.,~ is"' overwneimClearly then money is not tight
ing, as a result of our expanding easier money.
f
.••>
through a decrease in the money nonulation and
movement to the
How long can expenditures for
supply. Moreover, our dollars are suburbs.
plant and equipment be sustained
doing extra duty through' over¬
Ana so I say to you that we at present rates? Surveys by Mc¬
time work. The
velocity of money should not
The Department -of
assert that money is Graw-Hill,
has increased thus
improving its tight because the Federal Reserve Commerce, and Newsweek Maga¬
efficiency as a medium of ex¬
zine all point to substantial out¬
Board
has made it
so
nor
that
change.
lays through 1957. The drive for
money is in short supply. Rather,
by the
upsurge in the
buving of women's fashion
accessories the past week. The
call for dresses and coats
expanded
appreciably, but volume in suits remained at
the level of the
previous week.
Although total sales of men's
levels.
report.
City
below
to
and
overnight whenever ix chooses 10-
was
increase of
an
in
doubt
no
facilities,
deferred,
to
—1; East and North¬
-f 3; Middle West and Southwest —2
—3
York
percent
year.
following percentages: New England
+2
to
New
24,
In the
(revised)
is
for t^at
and
early Christmas sales promotions, shoppers
their buying of
gifts, apparel and housewares
but total retail trade slipped
slightly,,.below that
new
1956,
1956 to
Nov.
year.
w
styled
of
1,
position.
thority,
Continued from first
page
preceding
by
of last year.
Jan.
taken from
ended
siae-
The further resort to credit
The
noticeably increased
past week,
line
passive
a
t*ie
SCi'lSe
3
All
taken
that the Board has the power, au¬
"
Below Last Year's Level
Despite Good Response to
Christmas Promotions
!
the
lor
registered.
dential
date two years ago.
Trade Volume Dipped Slightly
Attracted
observers
index recorded
very
j
in
was
in*
Sustaining factors included mill price-fixing and short
ing and some buying resulting from Presidential action
this
week
ended Nov. 24,
period in 1955.
a
coffee
and
year.
the
has
of
not
,
decline
Cash oats prices were
strong due principally to the meager
marketings. Soybeans were the most active commodity on the
Chicago Board of Trade last week. Average daily purchases of
a
for
increase of 6%
an
because
Increases in tne dis¬
Uial rwt!l.
Uie
There
as
not
forces,
Board
year ago...
Cash corn
prices strengthened, reflecting a sharp
producers marketings as compared with last year.
in
index
one
the
,
shipments to thebeneficial effect'
because
country-wide basis
a
period
about
or
trade
ago,
lull
•
that of the similar
registered above that of 1955.
were
Atlantic Coast and Gulf of Mexico
ports had
all
with
par
the
volume
1%
somewhat irregular but the general trend
was
firmer with substantial gains scored in wheat and corn
futures. The news that dock workers had returned to their
jobs
and that railroads had lifted an
on
Board's
For
was
trade
recorded.
since mid-.
Nov. 27, from
on
on
on
rates
count rate haye followed and
of apparel
~-v
"
Interest
demand.
Board action.
products and
department
weekly period ended Nov. 24,
19o6, decreased 1% below those of the like
period last year. In
the preceding week Nov.
17, 1956, an increase of 9% -(revised) was
the wholesale level.
highest
buying
aid not gener¬
The Board
this
market
According to the Federal Reserve Bbard's index,
store sales in New York
City for the
daily wholesale commodity price index, compiled by
Bradstreet, Inc., continued its upward trend last week to
the
a
year
The
and
the
in
,
For the four weeks
recorded.
was
gain of 3%
on
The index represents the sum total of the
price per pound of
31 raw foodstuffs and meats in
general use and its chief function
year
ate
abnormally
an
mand.
tight resulting
heavy de¬
but
have risen because of competitive
&
Retail
Higher in wholesale cost last week were flour, wheat, corn,
oats, hams, bellies, lard, sugar, coffee, cocoa, eggs, prunes and
hogs. Lower were rye, beef, butter, beans, steers and lambs.
high for the
•
Feueral Reserve
1%
a
new
food
wholesale volume slightly exceeded
reported.
June
a
decline
a
for
orders
1956, advanced 1% above those of the like period last
latest
reach
furnishings offset
preceding week, Nov. 17, 1956,
week ago.
Dun &
wholesale
Department store sales
Daily Wholesale Commodity Price Index Reached a New
High For Year and Highest Since Mid-April of 1952
poultry, eggs
declined moder¬
1955 week.
Highest Level Since June 5
is to show the general trend of food
prices at
in
increase
textiles.
Regions.
Rising for the third successive week, the Dun & Bradstreet
wholesale food price index for Nov. 27 went to $6.16, from $6.10
a
home
some
and
Wholesale Food Price index Rose for Third Successive
Week to
from
Money is in gen¬
picture?
supply
erous
of
1
ago
year
a
purchases
cheese, the buying of fresh meat and butter
Moderate
the West
except
areas
increases
their
Grocers reported sales gains in baked
goods, frozen foods
and candy. Volume in
canndB goods and fresh fruit and
vegetables
was unchanged.
»
declines from
Slight
8.
boosted
in this
ately.
the
previous week prevailed in the other five regions, including the
East North Central States where the toll dipped to 27 from 31.
New
housewives
Thursday, December 6, 1956
...
of
count
rate
low
of
we
high
the
look
wn - should
recall
'20s/when the dis¬
fluctuated
3%. to
comparison
a
himh
between
of
rates| today
low.
existing
uoon
7%.
are
a
By
still
efforts
•
being
each
in
Europe
similar
the
labor
from
until
Lead
What
then
role of the
to
Expansion
Would
Instability
has
been
the
Federal Reserve Board
sudden
I
see
labor
wartime
baby
reaches working age begin-*
ning about 1°64 or 1®65.
A tight
labor
tight
market
money
adds
tension
to
possibility of abate¬
for consumer
credit in the fore-eeable future?
ployment
Hdnts
a
market.
think not, at least
true
a
force.
crop
Is there any
Credit
experi¬
shortages.
tight
a
the
to
In¬
labor
are
smite
ment in the demand
Further
of
nossibility of
relief
market
firms
by
shortage
the
Countries
encing
made
other's labor force.
cidentally
stays
so
highr
long
as
Manv
mn^imer
I
em¬
stu-
credit
as
Volume
134
Number 5592
.
.
The Commercial and Financial
.
Chronicle
(2423)
posing an inflationary danger and store flexible interest
rates
on
have suggested that
perhaps the home mortgages.
If rates were
Federal Reserve Eoard should be.
again made sensitive it would pergiven stand-by controls to
keep mit the housing people to compete
consumer credit within reasonable,
bounds.
Industry spokesmen
phatically deny the need for
trols.
The
credit
does
amount
of
outstanding at
not
think
tell
its
rate
footing with other
the
haifjust
in its mortgage rate to 5%.
Although the change is welcome, I
being
'
is
'TTnisri«A
an
views
it
to
:
the
-
ro
roically'cast
be
of my own
study
-doubts
more
wisdom
I
of
adding
monetary controls, a
network of
sgfective controls. They
are
really efforts to control proon
selective
a
basis
earlv
last
price
of
railway
tickets.
A
cement company in Palestine has
sold debentures giving the investor
the
option
of receiving paybags of cement.
ment in actual
Mr. Macmillan, Great
Britain's
Chancellor of the
Excnequer, nas
recently introduced what he describes as a "Premium Bond." Un-
der this plan investors
hond on which there
(
period ea,rly, last amazemonth
world stood
terest
lucky
in
Today
it looks like increased pressure
the money markets for
on
military
and
would
Pooled
he
and
dis-
w°uld b? Pooled 4and dis
as
cash prizes to a few
tributed
public
drawings.
party
has
Republicans
hate
monthly
opposition
The
labeled
this
a
lottery
while
and
among
who
still
are
who
groups
,
b#th
inflation, there
nority
tight money last.
This follows
naturally from the administrative
process, since it is much easier to
adopt curbs over larger loans than
there
Democrats
groups
mi-
to apply them to a
dislike
tight
money, groups who put political
expeaiency or personal gain ahead
of
national
our
welfare.
gravest
Herein
it
Intellectual
Integrity
A prominent speaker at
-
Cabinet level
economic council be
created to coordinate the monetary affairs of the Government,
eral
hold
means
a
active
the
Reserve
world
devising
have
over
been
to'"protect
clans
Board
People
Anyone who buys a life insurpolicy is a money lender—
money
would
and
of
depositors in time
million
the
throw
frequent conferences
Are
lender—about 12 million of them,
lenders-.
Actually
lender
the
is
interest
small
regular
not
but
money
fellow.
High
give the
only
few
a
also
are
the
little
rates
lender
interest
as
at which
^ P+°Hcy quesrti?1ns of b°th
savings accounts and the 19
shareholders of the sav-
ings and loan associations
recommendation overlooks
fact
that
the
staffs
of
the
and
Lenders
Themselves
The 67 million
This
the
Money
103 million of them. Likewise everyone who contributes toIJ
,.T,
wards a pension fund is a
and the Fed¬
as
-
about
.
Treasury Department
device,
of stimulating savings,
that
enriching
are
-
ance
The purpose obviously would be
}° give the President authority to
Pass finally upon questions of
all
-
Agate.this simply is a serious dis-tortion of the truth.
/.
and
charged
rates
big money lenders
at the expense of the little fellow.
monetary pol¬
icy into the maelstrom of politics.
similar
interest
Real
Board
been
-
recent
a
Monetary policy. This plan
destroy the independence
a
has
the banks and
meeting of the American Bankers
Association recommended that a
only the interest earnings are left
to chance.
Russia, Sweden, Norway,
Belgium, Italy, France,
Greece, Denmark and Holland are
using
also
high
danger.
Support Federal Reserve in Its
multiplicity of
small and divergent transactions."
lies
which is not quite accurate since
the principal remains intact and
Men
and localities
however,* and
powerful
are
.
persons selected at
purposes,
During 1956 states
He does not control Con-
rency.
gress,
sold a
are
yrould be no
regular interest payments but ori
which a sum equivalent "to
4% in-
month
tinue heavy military
expenditures,
if we are to live in peace.
bit clumsy because ine
on cjumsy oecause the
pressure
a
off their shackles for
neriod
day if true. Unfortunately the time
has not yet arrived.
Again Russia
is rattling the sabers and our country has no alternative but to con-
over
I
more
the
Could this mark the beginning of disintegration of the Russian ;satellites? " What a glorious
problem
to
^
ment.
general
duction
brief
a brjef
r';, the free
V
modified
The
the
?
.
■
difficult
some
been
year.
problem
as
is
I find
have
past
^
;
Controls
intriguing
which
dogmatic.
have
.
When the Hungarian
people hea
Production
'
This
the
still believe in flexible rates.
r_
important questions.
•
to
increase
an
___
Selective
the
nor-
The F.H.A.
announced
...
of the
about
houses
new
\yould be made responsive to
made in the
economy. The extent to which it
is financed bv bank credit is one
I
of
mal housing demand.
its
timing with respect to other total
expenditures
construction
railroad has sold securities whose
return to the investor is tied to
.
I
more
and
of. credit.:
users
again would be
by market forces and
determined
time
worry
equal
on
The flow of funds
story.•
increase
market
money
con-
any one
to
of
the
em-
consumer
whole
have
we
about
the
in
power guarantees based on
price
indexes. The French nationalized
43
extra
also
dollars
protect
him
from the ravages of inflation,
or-
These
hearings
will
make
the
than1the p^duction1^1 Ff
jY^1 have calendar isabout $5 with sevSa^^urftr^ inflation. In
bil- themselves against
headlines and present a golden
The borrowed
loaded
!?!u.c?a.nl.t0_yav^Lt.b!?.r<?ad_ _for additional pending issues. Voters .cies may be purchased with both discussed. But following full dis- opportunity to explain to the peoseveral
First it takes
dom^to "art^^lte^Md^udemlnt pK.thhe. real meaf"8 and ™port
I
new issues iotaling $2 4 benefits and premiums geared to
billion
am
reasons.
su-
not
be
lmWnnalamwn,laiit
economy.
Would it
thp
the
better
to
leave such
money market, and higher interest
rates have impinged perhaps more
deci-
heavily
One control usuallv leads to
and
embarked
once
pPFippno
to
n'".!"
the
1
an-
states
of
than
borrower,
works, roads; etc. have had to be
short
deferred because of statutory
strict-ions
Ex-
rates..
.
on
Th^e
moved.
efforts
debts
Certainly
immediatelv
amnle
warning of tne
pitfalls and ultimate futility of this
ahead
the
p^rt
of
interest
will
in
be
the
re¬
years
demand
market
re-
—
and
bivdles
tMs
agricultural production
be
and
urgently heeded civic improvements such as schools, water-
°"
Government's
control
should
f
cities
down
this road t^ere is
jio stopping
•'
of
complete regimentation.
with
other class
any
from
will
not
diminish.
tbaT°woh Fb^ufdnPttimot tT'kcen- F'ee
^hereH"grE™n,|nl.v °ut;U"
down
inflation
through
tmnoral
n,n& Normal
,Capital Formation
rronetarv controls and only if that
In this rundown of demand facse-;. tors I find a vigorous free-wheel-'
attempt fails should wod?o to
lec.tive controls as an act. if
yoii- ing,free-spending, dynamic econwill, of desPor£»tion. "The F^d<>ral omy.
It has out-run the normal
Reserve Eoard is about to o„blish
h
.study
on
consumer
credit
rate .of capital formation and is
confused and somewhat
impatient
with
delays and .1 obstacles that
arise in its path
by way of
re-
c^nFv rorenlPted at the reouest of
the Council of Economic Advisers!
tight
light
h^ld^iiht^dThpnn^!rme mTyproblem.„
heeded
the
on
-
n0w
The demand for moctvage credit
housing is a robust one. We
have ne^d for a
mil|ion
new
units
a
dbcolescence.
.;
to
vear
and
"APo
or
to
tbp
.
at
the
business and mine
building
in
the
years
snmo
one
activitv bv
of the money market.
......
.
the improving climate for «avin^.
Higher interest rates will be a big
help in getting the job done. We
must he realistic,., however, and
The chief
Jn
the
Market,
inflationary offenders
mortgage
several
Shouldv
considered
in
for
pensions
payments.
which
in
is"
thi
social
being
annuity
debated
but
another
is
the
sam'p
with
inflation.
haVe
the
devices
clauses
hotly
so
^of
been
security
variable
countrv
live
have
escalator
and
The
manifestation
to
also
effort
All
are
the
agencies
op-
In addition to higher rates people
market
government
erating. in the lending fi°ld: The
must
have
confidence
that
the
Veterans Administration, the Fed- r-urchasing powef- of .their savings
^ral Housing Administration,Fan- wjll.be preserved. The record in
hy Mae and the Home Loan Bank
Board;
.
These agencies have made
inortgage
times
.terms
when
the
more
liberal
Federal
at
which
signment.
unsound
fiscal
and
monetary policies of government.
tax
is
savings.
the
40
dishonest hidden
a
a
of
government cheats
part
or
all of their
The cheating hits hardest
million
persons
who
own
savings bonds, the 103 million polir
perwho:own life
t
sons
insurance
the-6? "million depositors in
time and savings accounts, 19 mil-
some kind, in .short, vjrtually |hO
entire population of the country,
How
can
there be any compromise
.^rith such
a practice?
If we follow
these inflation hedges to their ultimate conclusion most everyone
would be protected by
a
gimmick
^eiS0/Pe kind and in the
inflation would be
process
given such
im-
Reserve
poard was calling for restraint. I
bave hfard of no criticism of conyentional
mortgages
thrift institutions have no alternative but to fight
unsound monptary
an't
fiscal
we
Possess.
fborities
functioning.
,
.
I
that
as
are
sound
„
their
-Fortunately
we
have
ro ouarrel with the monetary au-
thev
Vejzarr^
at
source with everv ounce of energy
good, since
1952 but price increases in recent
ful people to wonder.
policies
.constituted
row
Our job is to
see
permitted to stay
am
a
forced
the
to
conclusion
will
not
end
by nongov- -'
fOemg used ADroaa .
any substantial
ernmmt
lenders.
Congress and
Savings have a tendency to dry near-term increases.in the saving
administrative agencies have tried up
.curing periods of rapid'price habits of our people.' We should
to instate the -h o u s i
ng, field, increases. In many countries where use every means at our
disposal*
agaiucf the rising interest market inflation has been
more
pro- .however, to get our
people to in£>v fixing interest, rates at an-ar-r nounced than
h^re,' some rather crease their pavings in order to
bitrarv-41,^or-. As a-result it is bizarre devices are
being u^d in reduce, inflationary pressures in
now
impossible to ^ell such loans an effo-t to coax out timid
capi-> the economy.
except at sizable discounts. This tal. In Finland most
savings banksThis brings me to my final queshes .caused housing starts to de-- offer
their depositors' a form of tion. What are the
possibilities of
clin'e and
the several
Federal account where a saver gets
43A% the Federal Reserve Board abanagencies are trying t.o restore vol-, interest,
which js Wz% below the doning its position under heat of
time by direct lending
activities; prevailing rate oe ordinary depos- political pressure? The reelection
which
freouent.lv at cross pur- its but at the end
of the year his of President Eisenhower
by such
posps wi+b F°der^l Re^rve Board account is credited with an
addi-r an overwhelming majority gives
policy. The Ron-d is bmug criti- tional amount which will restore cause for
optimism.
During the
cized bv the buiH'pg t'm'^s for a its
original purchasing pow^r. as campaign he repeatedly pledged
situation over wMch it
had indicated by a
cost-of-living index, his office to support the continued
little or "O control., I see no ?olu- Finland
al°o. has issued governindependence of the Board and to
tion to this problem
except to re- ment
bonds
w i t h
purchasing give the country an honest cur-
.
citizens be made to understand
bilization
about
experience with
chairman
can
Assuming
m
money
the
force
as
demand for
our rate of savings,
and
iong
so
the present
as
rate of ..industrial expansion continue? in _th®4 expectation^of m-
creasing profits.
I leave it to your
good judgment to decide when
changes in any of these condition?
recent
nolicv
of
wiU have
we
are
the
likely to
occur.
and Alfred
-Paves. President of the New York
Federal Reserve Bank and
Vi.cechairman
of
the
Open Market
Committee,
appear as
have
been
witnesses.
asked
From
to
al-
an
ready well established pattern
js
t0
it
anticipate the nature of
.^e questions to be
raised.
1
•
»
''Tight" Money Does Not Discriminate-Against Small Businessman
p
has
been
claimed
that
tight
b.usinessthe home buyer and
the
farmer while big business
gets all
the money it wants. This
simply
money
hurts
the
small
man,
nof true.
We at the Equitable
for example have about
$1 billion.
annually for
new investments.
In
period of tight money it has
been our policy to take care of
first, policy loans> which are con-
this
factual obligations, nex.t.jour nprdwelling and farm loan busi^-
'
^
,
credit
arhounts
old
tests
each.
we
loans
up
Above
try to take
customers
reduced
on
but
care
Last
>
Many thousands of',Americans
to
banks
essentially this
of
in
our
year.
.
But the tragic
a
look
instalment
of
loans
fact,
tell
following
policy,
every
U9,
is that
our
are
same
business.
"the-humber
more
at
their
cer
made
to
death is
twice
as
a
doctors...
third
cap-
needless death...
many
could be saved.
re-
For the facts of life about
loans
He found
that,
commercial
people
time.
Mr. J. Stewart Baker, President
to small
Mojr^and
K
cancer every
going to their doctora
are
in
line
of the Chase Manhattan Bank,
cently took
being cured of
are
are
new
jumbo applications
in
amounts from $10 million and up.
I know that several of the larger
commercial
their doctors in time
these
frequently
amounts.)
because they voent
to
\
mortgage applications vwhich meet
our
cer,
and
write
your
can¬
call the American Cancer
Society office
small
business in amounts ranging from
$1,000 to $100,000 had increased
to
nearest you or
"Cancer" in
care
of
local Post Office.
bv 31%
in the year from August,
1955 to August, 1956. This hardly
represented
horns. As
a
any
me,
Federal
We will have tight money so long
as there is a
shortage in our labor
been
Federal Reserve Board
to achieve
long
so
funds exceeds
from
Martin
are
And n°W in conclusion let
is
have
monetarv
we
J Reserve Board retains its freedom
week
a
William
if
neces-ry
sum
immL 1
Hearings
in
money
this result.
gA a^~
do
to review current and
now
importance of sound
-of initiative>
we
through a widecampaign can
educational
ence of the Federal Reserve Board
j«
s
scheduled
you
and bow the continued mdepend-
,
$250,000
tight money
quickly because of
I
,
on
,
-
our
.andwe accommodate all
that
course.
,(i
spread
the
of
Only
people.
to
carry
it out
intellectual integrity.
From another quarter the Board
Savings
your
each
the
permit them
Q,iV
by which
its'citizens
months
again.causing thought-
to
Is Disn°iiest Hidde11 Tax;
Inflation
.
with
..
pleats Citizens of Their
.
^ S,
uttl Sin
^n!i3^ The least
_
ri
.
?wouldbe^ddlh^ ofVdaS"
1 be meddling of a danfha
t^is,respect Jiasrbeen
are
A,
ols1count rate> yet subsequent de-.
vLel°Pments have fully supported
these
to
quirements. Perhaps even higher
interest rates wid prove necessarv.
.
Ec omm Advisers aPProved
K® *1^1 g ?
^ increase in the
treating the effects of the
disease while ignoring or condoning the basic causes of inflation
are
ties
long and hard before
,
key_busmess-
respective communihas an opportunity to explain these issues to the
the
^T3the
weak-
common
of
n-ess
a slow procpetus that the entire structure
get people to save enough must collapse. Those of us who
to.meet our growing capital re-"direct thrn
affairs of our great
ess
that
oion P°licy* Last May neither
Secretary of the Treasury nor
•
infll- r„vi."!,!„c.0ntTrarJ
admit that it will be
•Flexible Interest Rates
.• Be
Restored to Housing
certain
tion
new all-time highs, but JiOh- shareholders of the savings
still inadequate to meet the Pnd loan associations anq,12.5 milunusual, demand for funds. Your Jmn who have pe.nsion plans of
ba«>
a
Powerful', political aheqd are agoing to do our level
lobby continually pressuriTigGon— best to stimulate thrift- and sav—
gress
for m^re favorable -credit iftgs. We should be able to achieve
tr<*atmppt. vWhen monev tis si-' f°mewhat better results because of
be
can
contracts seek to insulate the
wage
earner from the erosion of
Suggestions
tight money.__As
in
men
One
Board thinks
reached
trade
phoned into
'
,
this
wage
are
new
rnnlace
preferred legation. tue r~s'dt is
fncreased pressur® on. the balance
,
V
look
,
quick
of supply. We have already indicated that savings h3ve
more
house
a
-ources
for
ifamiiv formations
for
judgment of
dictates.
a
cost-of-living index.
In
country escalator clauses in
Many
,
other
on
on
sions do the impersonal functioning of the competitive market?.-
1
The*tight
election day.
on
WXtfnr
for
best
A merican Cancer
pulling in of our
fact, in many
matter of
banks it is the loans to small bus-
iness which will feel the pinch of
_
?.
Society T®
AA
(2424)
The Commercial and Financial Chronicle
Continued from first page
fectiveness of the Interest rate
.
\
v
T„
this
to
mm
|H
to
as
over-borrowing—
especially and doubly so an inflationary price environment. Add
The Role oi Credit
m
r
HVWllvIlftlv
that
taxes has for
-f
lirnwtn
V*Www 1*1
AMAf||lfj
"ft
deterrent
a
money
before
even
long time been by
a
for
credit, for capital,
prodi-
are
tjious.
annual
Our
baby
market,
and
have
you
had
a
four
of
crop
of the recent campaign
oratory calling for lower taxes,
bigger exemptions, lower interest
rates, expanding spending, you
some
would
hospitals, water supply, colleges—
quite irrespective of how many of
our old people pass on at the other
this
niatnprf
nrnH.u-^ m'
hv
hv
growth
business
is
than
to produce
nvpr
just keeping pace with
rising population which con?:titutes only a part of this fascioating story — add to this the
necessity to put in new machinery
to
offset
rising
wage
demands
The capital flow of last year
couldn't produce all the money
that
the
insurance
companies
wanted to finance the mortgage
demand so they borrowed some of
it from the banking system via
which
the
more
our
have
become
almost
auto-
mafic—the necessity to put in new
warehousing
of
mortgages.
necessity
to
translate
into
jiachinery and brick and mortar
the
facilities
to
produce
the
fabulous
new
products that we
have been inventing, and you get
This
year
the
capital
market
couldn't produce all the money
that the corporations needed for
capital goods expansion so the.
corporate treasurers fell back on
their credit lines at the banks
to make up the difference—this,
in addition to running dovvn then
liquidity and depleting their-liquid
(growth
reserves
plants
just
to stay in the competitive race because if you don't
Vour competitor will, and finally
the
factors
credit
and
longer
a
demand
of
capital
which
straight
for
no
are
mathematical
projection, but more like an exponential
more
Jong
as
Yet
curve.
less
or
for
the
and
it
take
we
that
granted
decent
preserve
we
crnment
.
as
gov-
free
to the point
where they
had to borrow huge sums just to
pay their taxes.
1
Now
you
amounts
can
to
capital
that
say
financing
with
needs
this
long-term
short-term
with bank credit, and this
money,
enterprise
System, the savings and banking
is inflationary—and of course it is.
facilities will grow pari passu with
the capital and credit needs of the
solve
But
stating
it.
the
problem
We're
doesn't
all
so
talking about
the
inflationary dangers, but is
anybody doing anything about it?
We're creating inflationary pressures which the Federal Reserve
prospects that
we're apt to be taken in by those
has to deal with, but this doesn't
meet the more fundamental prob-
Country.
dazzled
by
the
of
matter
a
who
is
delusion
Komrc
As
This
great
time.
our
of
eco-
fact
we're
these
glibly
project recent rates
of growth, without
analysis as to
3iow
they
were
achieved
and
Rased
thereon predict
will
These
1970—in
then
work
1980.
back-
wards from there and if the actual
figures for 1956 and
1957, if
—
that
we've
fallen
haven't
we
come
behind—
to
up
growth potential—we have
duction
deficit
which
credit
our
a
pro-
must
as
#
The truth is that
to
run
with
added
.serve
Federal
Re-
banks, depending
what they're trying to prove.
Cr
«
urowin
v
a
«
wot
have
to
been
without
economy
patched
much
growth
on
proceed
•automatically — it has organic
-qualities—it needs the right environment
to
thrive—if
the
right
environment isn't provided growth
will
be
stunted; if there isn't
■enough
will
to
space
be
expand,
limited,
while
and
thought
dissipated
by
inflation,
around tne world tor any number
j*1 case histories—tne interest rate
becomes notning more than an
index ot tne anticipated rate of
depreciation ot the currency.
~
jn
our
happily
case
the
sharp
rise in the interest rate is not such
a
phenomenon
fleets
ated
tal
the
but instead
—
re-
tax-accentu-
enormous
by
growth—the very rise,
has
revealed
structural
and
growth
hothouse
weaknesses
not
venience
investor"
as
a
prime
banking and money
market mechanism, to wit:, the
corporation treasurers, the pension
fund
managers,
the
nonbanking financial institutions, the
Turnpikes, the Port Authorities
end all those who now keep their
factor in
our
surplus funds at work by investing them in U. S. Treasury bills
or commercial
paper instead
of
leaving them on deposit with the
commercial banks as they used
to in the past, when banks were
permitted
to
pay
interest
on
demand deposits. The prohibition
thereagainst set forces into motion which inertia and habit and
the
long
era
rates
money
of
artificially
obscured
for
low
many
years. Once money rates
however,
shift
in
there
advanced,
a
great
habits with
followed
institutional
respect to the disposition of shortterm balances. Of even greater
imPac't was the fact that both the
number
ui
"convenience
inese
investors" and the size of their
short-term balances seeking ternP01'ary remuneration have grown
prodigiously
structure in
•economy can function.
which
the
A tax sys-
1cm attuned to its needs is
prime
-essential
it
also
requires
a
Ranking system, a debt structure,
a
—
a
money
which
—and
and credit mechanism in
it
can
operate
these
things
automatically.
Canital
effectively
don't
c
happen
Right
s
i
,
now
weve
got
an
un-
Everybody is talkanybody doing
g about it, but is
anything
trary,
if
about
you
it.
will
On
think
the
con-
back
working capital.
real
problem
has
This
We
need
broad
a
a
be a
when
big cash
active
and
structure and
its relationship
the
credit
mechanism,
to
fiscal
and
Allan
as
—
the
amounts
of
Sproul
has
time deposits
being shifted
are now
out ot- the banks to other forms or
transferred
Canada.
to
At
some
point aiso when the present heavy
demand
for
credit
has
we ought to reexamine the distinction made between reserves
required of Central Reserve city
banks, Reserve city banks and
ani^truetural
MMshinicar
-
iiiiucuuies
.
,
.
...
the
nearer
truth.
by
power is mbranch banking
our
legislation enacted
and
certainly not
mizing them.
The
other
our
tax
years ago
when
whfn no bank will be able to op-
designed
and
no
tax
growth
respect
to
pact
on
are
the
rate
of
to
less
of the
aspect
use
maxi-
signifi-
laws
with
their
im-
of credit and
interest.
As
at
income
Nor
fact
the
present
to make loans is restricted. Simultaneously the liquidity ratio of the
banks is disturbed, because the
corPora^on treasurer has drawn
down bis deposits to buy the bills
ir°m the banks, which accordingly
d°n'£ have them on the asset side
their balance sheet.
as
savings
of
adequate
and
risk
capital.
thrown the loan/deposit ratio of
are
than
growth
insufficient
employ-
you
by
can
making
savings
by
ac-
up
infla-
downturns
business
the
as
would
money
in
general
critics
have
of
tight
believe;
us
rather, such downturns stem from
previous imbalanced over-expansion which cannot be maina
tained
in
The
any 4pase.
suggestion that the Federal
Reserve
Board
be
insulated
against such criticism and
jjeved
the
Gf
of
onus
be
re¬
implement-
jng the rather loosely defined and
r
taken
literally
the impossible
implicit in -the Employ-
rnandate
ment Act of 1946 bv the formation
COoi'dinate
tional
and
formulate
na-
monetary and credit policy
diluting the
Reserve
powers
of the Federal
Board,
should
we
strengthen them—give
the
Board
-
cur-
laws
for
full
guarantee
or
anymore
comodate
conditions were quite different, additional tools if it deems it
We ought to take a fresh lookj at necessary to ask Congress for
the device of the holding company £Rem and examine the question of
~ar}d the application of the First whether and to what extent the
National City Bank for permission power of other Federal agencies to
to form a holding company which tUt acruss lls policies should be
would enable it to cross the cul-tailed or eliminated,
county line may prove to be the
answer — and in reviewing this
Political Pressure
should bear in mind
In any economjc crisis there'll
that the time is not too tar oil aiways be political pressure to
vest them in bills or other inter-
are
erate
ment
.
lending
H?QlS .of
hibited
these
can
made
hence a balanced budgprime prerequisite to
but savings are the next
unhappy truth, however, is
money" does not gen-
flexibility and maneuver- is it seems to me a step backward
ability of the banking system to ra'ther than forward- as a matter
accommodate growth has also run
practical politics this proposal
hito mechanical and -structural appears more
likely- to weaken
difficulties in other respects. In ratber than strengthen the indethe first place the growth of the pendence of the Federal Reserve
corporation
has
outpaced - the Board; the fact "thatwe " have
growth of the bank so that the adopted the
Employment Act of
10% limitation on credit extended
doesn't mean that we have
by a bank to any one borrower thereby abrogated all other conhas become a real limiting factor. fReting legislation including; the
One reason for this is that the federal Reserve Act and that
long period of artificially easy
must make everything conform
money
prevented
the
normal irrespective of the
consequences—-'
growth of banking capital--re- rather we should broaden undersources. In addition the effective standing of what is
possible and
mobilization of 14,000 individual wRat js n0£
p0ssible—instead of
ost-bearing instruments, has
stable
The
The
much
a
essential
cant
A
at
(a)
(b)
that "easy
^
,
expand debt—as well
any excess bank balances and in-
and
of a National Economic; Council
Alcclianical and structural
>
quantities
—
budget;
make money rates easier,
subsided
down
be
the
point
or
to:
generate
time when
a
"con-
would
certain
a
would,
be expected
should,
time deposits fixed at
growth. The fact that the
venience investors" • draw
opposite
beyond
government
tion. Conversely, high money rates
are not inconsistent with growth
or full employment and they don't
The net of all these structural
problems and deficiencies is that
the capacities of the banking systern to keep pace with the constantly rising needs of industry
are running into limitations—and
growth requires the capacity to
tax away whatever it needs in any
manner
that political pressures
dictate, and that the balances will
be sufficient to take care of everything else—including growth at
whatever-rate? is needed
the
number
a
suggested. We ought to take a look
a* the limitations placed on banks
as t0 the rates they may pay on
tion of dividend disbursements,
tax Payments and other purposes
are bigger than ever and destined
to grow even more. The effects
have been far reaching—and have
£Pven rise to a whole series of
other problems which impinge on
most conspicexampie of thts probably is
our tax system, vet we blithely
assume that the government can
develops
the
least
our
dynamic economy—and we need
to
give serious
thought, to
its
banking,
had
hearings on the
question as
to
what
precisely
should be the guideposts of monetary policy in the light thereof—
without, however, really coming
to
grips with the problem—but
leaving the widely held popular
unbalance
market to accomodate
money
we've
liquid impression that if unemployment
may
the Treasury will have
surplus.
the
as
spring
next
to
come
erate successfully unless it is big
enough to afford a computer.
but
rate,
our
deficiencies
be
by monetary policy—in
resoive
money
rates
the
jt
by
increasing
the
supply and driving interest
but growth requires
down
environment
currency
of.
stable
a
and growth also requires
bigger
savings
to
supply
its
mounting capital demands. This
means
higher,
lower
not
interest
rates—we
urgently need greater
public comprehension of what the
Federal
Reserve
is
trying
to
do
and of the fact that submitting to
the discipline of a higher interest
rate
is
one
of
the
prices^and
a
cheap one much to be premonetary ferred to controls—that we must
policy is quite another chapter pay ,fpr sustained growth. And
and quite a different problem— our "growth irotential is so huge
-
up
the
problem
very
of
.
what
the
Federal
has
Reserve
in
effect been saying is that the rate
0f
growth
has
been
at
which
trying
of what
excess
sustain,
and
to
our
accomodate, what
the
country
expand
is
in
structure can
savings can
our
physical
our
what
to
as
point
to
a
permanently
interest rate
higher plateau of
than what we have been
accustomed to—this in turn raises
another problem for the role of
credit in economic growth, to wit:
how best to accommodate the
capacity can produce—that these Treasury's financial needs
and
are inflationary tendencies for it manage the public debt, much of
tax
simultaneously
premium
every cent one can
rate of savings.
business
urers of corporations in anticipa-
^eiievable demand forthe current virtual
capital that
clearly
outrun
nas
n
American
the
which
Act
laws
The Treasury bill has
emerged is one of the paradoxes of infla- which was contracted when innot only dilute the incentive to as the prime instrument of the tion that it is a condition where terest rates were much lower.
save, and thereby weaken the money market supplanting the nobody has enough money because
The Treasury will accordingly
classical functions of the interest bank
deposit
as
the
foremost everybody has too much.
continue to find itself in a posi-.
nnih«r
.
•
be
to
paper
money beld periodically by treas-
constituted
DemanH
surplus—the
apt
for
without
made from deposits, and when the
deposits aren't there the ability
a
is
regard
and
moment
exigencies
the banks out of Julter; loans
The
environment requires
only the free enterprise sys-
but
cramped
more
defects
et are
growth
pro-
ceed.
iem
the greater the
ury,
previously
rency and
can
this
Congressional
-
j>efore
growth
of
of
Country banks, particularly the
*irst two, which time and growth
however,' have made obsolete.
apparent. Foremost among these
is the
emergence
of the "con-
ment Act of 1946—which is to—
and I quote—"promote maximum
employment, production and purchasing power." Since the passage
created
dynamic
our
Thursday, December 6, 1956
.
.
the anomalous situation where the
demands for credit and capi-
generated
oxact
normal
opposite
thus
When that assurance is not pres- interest rates generally were much
ent an<7, you ,fYe but t0 1(?ok lower with the result that these
treatment will produce
unhealthy
-excesses which must be corrected
?iot
have
the
the
for
the economy. The
♦
Automatic
doesn't
the
just
We
of
except
uoug
But
of
their impact on other segments of
the
or
billion
trying
grown,' outdated, partly outmoded,
which
the
are
pieces of machinery
which as the very result of our
spectacular growth are partly out-
be
or
$420
a
we
various
made up and proceed to blame the
government
substitute for unavail-
a
able capital—for savings—on the
contrary.
you
please, haven't come up to these
mythical norms
why there's
that
and
what should be done to eliminate
what GNP,
in
be
people
proof
con-
stantly
them. For it isn't the function of
expenditures, disposable the Federal Reserve to provide
consumer
income
lem of why we have these
recurring pressures
be
not
mg*
sp
in
run
direction.
rely on to go in and out of
major respositSfy^of its
?rder \° develop savings at any
jfll J£terest rate
5+t
aP
aY«
t a?fur^r?ce.that the savings will
tbe various .byproducts of ove
end of the scale,
But
'A
may
borrowing and saving are pervasive—they mean a higher in-
0n
rnight think we were back in the terest rate is needed
Pf0C^
feelings
own
supply of government
sufficient
be
its
The consequences of this doublebarrelled impact of the tax laws
middle thirties—when we had an the same restraint on borrowing
to keep
us
pretty busy
for in economic,
fiscal and monetary than would otherwise be the case,
lust two years it means adding as climate which led Lord Keynes to
Inflationary tendencies are acmany people as there are in the develop his theory of over-saving,
centuated
by
the
tax-induced
whole of Portugal or Hungary—
Put over-saving is not our prob- pressure to make up by borrowing
and
it's
this
gross
figure that Jem
.thls ls an
*yK,
*or *he savmgs that have been
counts rather than the net addi- ferent environment
our problem taxed away or are not forthcomtions
after
death—for
the
four ls
"ot
J™, £r°!lllinh ing ln jS1J iS:,e
v^iU1?e to ac~
Vnillion babies will generate de- Quite another phenomenon, which commodate the growth demands—
mands for extra housing, schools, generates pressures and forces all yet it
is absolutely essential in
million alone
than
what constitutes a proper and
prudent debt structure and which
far the cheapest commodity in the sounder the position of the Treasveritable mandate to go into debt,
ating for goods, for raw materials,
for
new
machinery, for
labor,
rather
.
to
on,
because
deductible
in the
after
so
the
interest
that
place
a
on
borrowing
lay one's hands
a
1%
cost
is
increase
borrowing rate is onlv V2%
taxes, thus diluting the ef-
liquidity vehicle. This then places
the Treasury in the unwilling
position of being under constant
there
to accommodate the form
right
pressure
of
the
its
borrowing
business
mechanics
of
to
the
needs
community
the
money
and
of
the
market
This is
is
Federal
about
one
so
of the
much
Reserve
having
money
and
now we are
tight
reasons
criticism of
Board
and
why
the
why
debate
how to
a
make Federal Resejrve policy jibe
with the mandate of the Employ-
of having to refinance
maturities with
higher coupons
tion
as
well
savings
as
facing attrition
on
its
bond programs. Higher
interest rates reflect themselves
in lower bond prices. This means
portfolio losses for the •" institu-
5592
Number
184
Volume
.
.
.
tional holder and for the banking
as
well
Continued
has
merely
pending
.
;
'
-
...
_Y
...t
high-quality West Virginian coal
appears excellent, and Virgihiah,
....
figuring
Federal
the
meet
making allowance for the difficulty in obtaining approval on
intra-state rate increases, I figure
the 7% hike will add $450 million
to revenues. As you can see, this
would be ample to meet the immediate increase in costs.
Reserve
book and
prevented from raising the cost of
the public debt at the expense of
the taxpayer—another reason why
the independence of the Federal
Reserve Board should be strength¬
brought
to
and
So, when government bonds go
down materially, it always creates
be
cutbacks on
competition,
future
on
items
some
Should Be Strengthened
that
likely
Long-Range Rail Outlook
v
should
.
Norfolk & Western, and C & O
price.
cries
3
page
bought
a
as
Reserve
from
(2425)
the non-banking holder,
as
the
security
storehouse of value
such time as he
was
ready to use the funds for some
other corporate purpose. It means
the liquidity of his government
bond has become liquidity at a
who
\
The Commercial and Financial Chronicle
The
to
eastern
rail-
western
and
with low
lead
ahead.
to
be
All
of the others listed
should do better than the
industry
over-compensated. There has been
average, with the
trend in recent years for
strong, efficient carriers to
the
tion
be-
fic
a
and
more
come
more
prosperous,
while the marginal roads have
had to struggle harder and harder
to make both ends meet.
Since
World War II, stock purchases in
the
efficient segment of the
more
are
the
industry in
growth in the period immediately
ratios tend
wage
to
of
Nickel
volume
excep¬
be adversely af¬
St. Lawrence
may
fected
by the
Seaway, and by
sive
possible
Plate, whose traf¬
more
a
competitor
in
progres¬
New
York
Central.
Other roads that have
better
than average growth prospects are
Southern Railway, Southern Pa¬
45
hontas carriers will
not benefit as
much as other railroads
by a rate
hike.
However, with coal traffic
booming, this should not
prevent
these
roads, with their low wage
ratios, from doing well.
Southern
about
$6
Railway
share
a
will
this
and,
that the 1956 bond maturities
now
out of the way, an
are
earn
year
the
dividend
rate
increase in.
to
$3
seems
likely in the not too distant fu¬
ture. Management is
contemplat¬
ing ways and means of absorbing
its
profitable
subsidiary
com¬
panies (Alabama Great Southern,
industry have worked out exrequest for • a 15% freight rate tremely well, while speculations cific, and L & N. It is to be noted Cincinnati, New Orleans & Texas
boost, but the southern carriers *n the marginal situation have that many of the roads that have Pacific), which would add to re¬
have not joined them in this. The often
proved to be ill-advised. shown the best growth in recent ported earnings.
This
efficient
road serves a
15% petition will be subject to As Ipng as the inflationary spiral years, are also
growing territory
among those with
and the stock still seems
best efficiency
ened rather than weakened and prolonged hearings that may tajf#> continues to increase wages and the
relatively
records, and
three or four montns, anu
' Y'Y
ic is rates, I see no reason for this my preference in rail stocks lies cheap.
;Y Y '
'
why public understanding of what
what portion
with these companies.
will be trend to change.
is involved is so important—for uncertain
Y
yielding
that
the
this issue would mean
on
whole
the
struggle to unpeg
market
prior to
the
Federal
ReserveTreasury accord of 1951 would
have to be fought over again. The
answer to the handling of the gov¬
bond
government
debt
ernment
of
a
to
be
return
artificially
low
interest
rates
pegged by the use of Federal Re¬
serve
credit, but in the gradual
and
patient rolling over of the
existing debt into a rate structure
that
more
nearly
reflects
the
finance
order of
at
adequate
an
its
obtain
average,
4%
rate
from
the
Commission
satisfactory.
well in
mediate rise
of
invested
capital,
know, is
gentlemen
you
far
creases
on
a
their
on
freight
new
railroads
currently
lar^e
present
badly-needed
The
cars.
Therefore,
permit, in-
may
in
im-
of tne
excess
and prob¬
lems
are
by-products
of
our
fabulous growth which we're all
talking about but about which no
one
is doing very much in com¬
prehensive fashion. Here we have
a $420 billion economy and we are
wondering why should we have
also
are
anx-
that
haven't
been
compre¬
hensively reviewed since the Fed¬
eral
Reserve
some
of the
Act, not to mention
new-fangled contrap¬
volume to differ much from
The
immediate
certainly
to
get
if
into a peck of
seriously tried
us
we
ever
operate them.
-
....
coal
important to rail traffic. How-
loadings
car
currently are
under a year
runming slightly
ago,
and
some
economists
there
feel
be a genera let-down
business activity m the second
in
may
hat
ot
1957.
volume
to
we
similar
problem, we've resorted to
temporary expedients—but we'll
never
attain
our
real
growth
potential by just running
liquidity—in business
down
in
our
or
banking, or further speeding up
velocity of the currency or
continuing to try to
substitute
debt for
inadequate savings—in
the
fact we've
stretched
vices about
Here is
far
all
as
these
de¬
they will go.
a
inative
as
and
challenge for hard, imagconstructive thinking
embracing not only one segment
but the
whole spectrum of the
economy. There is no reason why
businessman
shouldn't
than
offset
be
banker
the
and
purposes,
ye£.aSst
amortization
granted
prj0r
wfth
is
in
except
ordered'
to
ionger
freieht
Dec
cars
31
1955
'out
amorUzation
running
industry ordered
bers 0f freight cars late in
greatBnum:
the
and
deliveries
will
p[ete until 1957.
|ds wj]]
duced
for
com-
While the bene-
continue for another live
it
years
1955
be
not
wiu
rate
most
be
at
a£ter
roads
much
a
19g7
1958
or
eI
A„
re_
Some raiiroad officials feel
the
s0_calIed
..sum
of
the
Between
Ilail
Stocks
cline
and
others
feel
(hat
amortization
a freight car shortdevelops again.
There is a
big difference between individual
Large segments of the railroad
industry are severely handicapped
by a super-abundance of unprofitable
passenger business,
terminal costs (particularly
New
York
heavy
in the
short-haul.
For this reason, profit
for
of the
several
large
carriers, such
as Pennsy, N. Y. C.,
Chicago Northwest, and Milwau-
kee
income
the
down
there
umn
regular
the
paying no Federal
and
others
are
more
52%
against
as
rate.
following, the first col-
shows the estimate
of
earn-
ings for 1956, and the second column
provides
an
estimate
of
income tax savings
amortization:
on
accelerated
an
illusion.
vent
to
review
our
and size
mergers
.have
.
devices and
new
to
do
a
we'll
folklore
have
about
We will
thinking in
per se.
lot
of
which the public will have to par¬
ticipate — in short, I think we
should all begin to do something
about
of
fabulous growth instead
our
just talking about it—for if
don't
it
may
choke
we
us.
Amos
Treat, President of Amos
Treat & Co.,
Inc., has been elected
are
"railroads
many
dividual carriers.
Class
I
1955
—_______—___
— _
—
_______
Seaboard
railroads,
in
revenues
eral
before
as
to
whole,
a
net
operating
director
Products
of
Gold
Corp., it
was
Seal
Dairy
announced
yesterday.
deduction
taxes.'
income
In
of
the
Maryland
Grande
32.3%;
Western
27.4%;
a
Ohio
&
of the
some
rail bonds
first
stock does not
than 7%,
more
railroad
a
common
at all
seem
enticing.
Money is likely to remain tight so
(long as the business boom con¬
tinues to keep up steam, and, with
high interest rates acting as a
brake
at
stock
on
for rail
asm
the
that I
mean
that
prices,
I
am
have
stocks
as
future.
roads
the
will
Then,
rail
far in
move
the immedi¬
a
stocks
substantially increased:
soon!
how
business
or
trially.
This good quality stock ip
conservatively valued.
Denver
Rio
&
Grande
Western
has been
buying in its outstanding
common stock and, with a
strong
cash
position,
the management,
probably will continue this policy.
This suggests that
the $2.50 divi¬
not be increased soon
earnings of almost $5.50
this
year,
but continued
stock
purchases
make
the
remaining
dend
may
despite
shares
valuable.
more
Nickel Plate will
-
V
third
its
of
freight traffic still
steam
locomotives*
efficiency gains through
handled
by
further
dieselization
over
in
reasonably
Virginian;
C & O; Norfolk &
Kansas City
Southern; Southern Railway; Den¬
ver & Rio Grande Western; Great
Northern; arid Nickel Plate.
alrnqst $4
earn
this year, and the $2 dividend pro¬
vides a juicy 7% yield. With one-
rail¬
seem
now:
is
passenger
branch lines, this is a
highly prof¬
itable
operation
and
the
Gulf
Coast area is expanding indus¬
until
are
Western;
this
almost
question
little
the
long-range basis, the fol¬
lowing
is
to be
still be achieved.
can
Great Northern's $3 dividend is
mid-March.
On
dividend
only
With
mouth
too,
poor
hearings
$4
the
not
conviction
over
talk
rate
does
bearish, but rather
little
either direction
ate
The
earn
basis
is not high
This
class will
a
enthusi¬
my
commons
moment.
consolidated
sure
mortgage
speculative
more
yielding
6% yield for
liberal relative to estimated
ings of
$5
over
latter
does
in
not
earn¬
1956, but the
include
undis¬
tributed net income from its large
holding of C B & Q stock, Spo¬
kane, Portland & Seattle or West¬
ern Fruit
Express, and the road is
financially strong.
#
^
Favorites
Named
30.3%;
Plate
C
® & OMilwaukee
Frisco
-_______
____________—
Denver ____ —
Great Northern
Rwy.
23.4%.
Rio
&
O
26.1%;
This
com-
Chicago & Northwest;
for
the
Milwaukee
more
Manv
T
.....
efficient
the
carriers
have
amounting to
40% or less of operating revenues,
while wage ratios for the marginal
roads run
50%
or
even
higher.
Thus,
when
the
ICC
grants
rate
make
relief
wage
try-wide
with
ratios
wage
2.47 10.00
1.41 2.25
1.64 3.50
9.75
3.69
8.10
high
out
to
offset
addition 0 °Pera \nS affic enc£ ea^eiul consideration must
a's.° ^ given to past and prob-
on
an
costs
indus-
the
companies
wage
ratios
do
not
too
well,
while
those
in
ha.veps^l™
the best avenue gains since 1947-
\
Wesd®rn
ruv
<5«uth
rS
Snrth'
c &-Oi:33; Great N<orthn
i
Seaboard
^
r
\ fniiT
L
advances
„Marketwise, they
may
in
test
their laurels in the immediate
future
1957
further
and
price gains in
somewhat
seem
unlikely, but
these good quality stocks provide
generous
yields and
have
long
potentialities.
C
O
&
will
$8.20 this year and is paying
Management expects traffic
and earnings to improve
Kalsey, Stuart Group
Offers Long Island
Ltg. Go. 4%% Bonds
Halsey, Stuart & Co. Inc. ft:
Manager of an investment bank¬
ing syndicate which is offering
today $20,000,000 Long Island
Lighting Co. first mortgage bonds,
series
at
further in 1957, and, like the other
to
Pocahontas
bonds
large
carriers, is spending
for rolling stock and
sums
4%%
I,
volume
102.75%
yield
the
expanded
coal, both here
and abroad. | Norfolk & Western's
terday
the
1,
by
won
the
of
the
competitive
1986,
interest,
under¬
sale
yes¬
101.60%.
indicated
Dec.
accrued
4.58%."Award
at
meet
due
and
was
writers
soft
demand
to
for
dividend
rate
is
$4.20.
Earnings of around $7.25 seem
likely this year;- The road" IS just
beginning to displace its steam
engines with diesels, and, while
Net
5)
(Dec.
-
will
be
bid
a
the
from
proceeds
bonds
on
used
of
sale
by
for
the
construction
plant
and
to
company
utility
of
the
of
bant:
repay
loans incurred in connection with
the ' construction
program.
Conthe
changeover is likely to be *s£f uction expenditures for the pe¬
gradual, it could produce substan¬ riod Oct. 1 1956 to Dec. 31, 1957
tial savings in the long run. Debt
are estimated at $65,000,000.
is
extremely conservative, so that
have a high-quality stock
with a 6% yield, that has ootentialities
of
really
worthwhile
improvement. Virginian will earn
about
pects
iqo'
If J *1
Denver
Noithern Pac fic 125.
You will note that the three
Pocahontas coal roads are right
up at the top.
The outlook for
$9.75
for
this
1957
in
favorable
year,
and
and
and
pros¬
beyond
view
of
export coal market.
extra
'fin3,? '''7™
in-
basis,
1956*.
on
market
The
bonds will be redeem¬
new
you
.
ern 13^
~rn,
good
facilities
4.20
4.
,
and'7% order the roads that
of
tered
$4.
Penn\v-Viio9'afoTeNeY C^S9«
Mlvl^carrta. I will name
for
C & O; Norfolk & Western; and
Virginian have all increased their
dividends recently and have regis¬
1.85
6.00
1.37
5.25
2.63 11.00
1.23
5.25
1.63
6.00
were
Denver
Southern
Nickel
Fedsame
year, more, efficient carriers
creased
a
on
yielding better than 5%%,
0.93
N. Y. Central
ACL
that are relatively free of these L & N
basic handicaps, and profit mar- Rock Island
gins
differ
widely
among
in- South. Pac,
low
Treat Director
bonds
and
earn
are
3.95
5.60
7.25
-everything is
Baltimore
range
far from robust, and drag
the industry figures.
How-
ever,
In
are
taxes,
40% or
paying
and
Chicago area),
light-density branch mileage, and
margins
roads. Some
.Nickel Plate ——— 0.35
tural changes, the .nature of which able ;to bring down 20-30% or .Southern Railway __,r_ 0.81
-will take much thought. We will e'veh better.
As examples I cite Norfolk & Western,— 0.87
have to foster savings in a big Virginian with a
whopping 45%; Virginian ___—___—,0.92
Kansas City Southern 33%; Nor- Soo Line
way. We will have to create new
0.50
institutions. We will have to in¬ folk
&
West
32.7%;
Western C & O
______
l.|0
-of
We will need to make many struc¬
6% yield
year ago, a
quality rail com¬
mons
seemed
mighty attractive.
Now, with high-grade utility
bonds being offered on a 4.25%
basis, With Missouri Pacific and
reinsl-ated if
5.25
5.10
care
A
be
may
0.75
0.66
•
to
City Southern will
a
age
income
more or
specifically, I should like
attractive
that
diglt,.
favorites
my
of the better
one
>
decline
naming
say a word about the market gen¬
remain_
ing equal, earnings will then tend
depreciation will cushion the de-
1956.
mechanisms will
less take
defense
celerated
better
in
brought down 15.3% of operating
as
for
than
somewhat
next year
ingenious as the
chemist and the engineer — to
simply assume that our existing
.
have been permitted to depreciate
over a five year period part of
the costs of new rolling stock and
roadway installations deemed
that
assume
can't
the
For income tax purposes the
railroads, like other industries,
the railioads
produce
earnings
be
more
c
tj
should
that
assume
will
if
and
relief will
rate
we
1957
in
1956
It
•
dodge the issue in¬
definitely. Having failed to tackle
.the
for
production appears quite
favorable, and Doth these items
Differences
We
outlook
1958.
and steel
tions that we've added that would
trouble
advanced. '
are
date, there is no real
for expecting 19o7 freight
reason
ever,
■and
rates
For
rates.
this
are
with
banking credit, tax,
fiscal and
rmcney
market structures, mech¬
anisms, and procedures that are
partly outmoded, partly outgrown,
it
operate
increase
more
on
year.
Before
erally.
simply postpones them until later
meet and
rail
At
we're
to
reason.
when
to
all these stresses and strains when
trying
Computing profit margins, before income taxes, rather than'
after taxes, was done with good
necessary
$11
The Market Generally
over-stated. This device does not
reduce taxes in the long run, it
are
reason,
pressures
*
railroad officials generally do not expect to lose traffic
both ends
icated by our growth.
these
Earning
and
Aaxes and Gainings
this
Trucks
costs.
also having a hard time to make
ious
All
Kansas
Taxes
However, unlike the industrials,
the
fast
depreciation
is
not
charged to operating expenses, so
that rail earnings, in effect, are
capital demand-supply ratio pred¬
,
separate
a
level if the industry is to success-
fully
which,
the*
filed
maintained
to
in
also
However, the ICC must
that rail earnings have
recognize
return
lie
not
face
the
approved.
higher interest rate
permanently
does
in
have
roads
the
seem
rising
It paid $1.25
increased
the
regular
dividend to $1 quarterly recently.
With earnings at the $10 level, the
road
can
afford
to
pay
1957.
Freight
increases
on
soft
coal
regular redemption prices
ranging from 107.75% to
at
special
accrued
plies
Nassau
the
and
gas
par,
and
Suffolk
contiguous
sula in Queens
Co.
sup¬
Counties
Rockaway penin¬
More than 76% of its
is
service.
derived
from
Population
tory
served
and
limitations,
that the Poca¬
estimated
at
in
and
County (New York
City).
by exemptions
re¬
plus
service
enues
be held down
and
case.
Lighting
electric
par,
prices
interest in each
Long Island
will
so
redemption
ceding from 102.75% to
out $5 or
better, but with its heavy equip¬
ment program, it would be haz¬
ardous to guess the extra dividend
in
able at
by
the
more
of
rev¬
electric
the
terri¬
company
than
is
1,600,000.
46
The Commercial and Financial Chronicle
(2426)
•'
.
.
Thursday, December 6, 1956
.
*
.
Securities
Laboratories,
it Allied
Now
to
Price—Not
pursuant
to
exceed
to
an
aggregate
Option Plan,
ottering price of
of
At par
writer—None.
tory;
Water Street, Toms
Proceeds—For
properties.
Office
—
expenses
S01
Underwriter—Lackner
American
Federal
&
and development of oil
Colo.
Sherman St., Denver,
Co., Denver, Colo.
heaters.
River, N. J.
Office—7
West
Underwriter—Berry &
Proceeds
27
stock
Corp., Killeen, Texas
Sept. 5 filed 40,000 shares of class B common stock (par
$5) and 400,000 shares of preferred stock (par $5) to be
offered in units of 10 preferred shares and one common
chare. Price—$55 per unit; Proceeds—To purchase used
car paper and to extend the company's operations into
the field of new car financing. Underwriter—None. J. J.
(par
debenture
notification)
to
be
and
$350 per unit.
850 shares of common
$212,500 of 6% second mortgage
and
bonds
stock
common
and
of
$100)
capital.
Oilcans, La.
units
of
$250^y4ober>ture
a
Proceeds
working
solid "in
one
For construction, equipment
Orleans Ave., New
—
American
Heritage Life Insurance Co.
Oct. 26 filed 1,136,250 shares of common stock (par $1),
of which 575,000 shares were on Nov. 29 sold to the pub¬
lic; 435,000 shares offered to agents and employees of
company from Nov. 29 to Dec. 27; and 126,250 shares to
employees pursuant to certain stock purchase options
granted by the company. Price—To public, $2 per share;
and to employees, $1.81 per share. Proceeds—For work¬
ing capital.
Office—Jacksonville, Fla. Underwriter—
Pierce, Carrison, Wulbern, Inc., of Jacksonville, Fla.
•
Arkansas
Louisiana Gas
Office—1609
Bridgford Packing Co., Anaheim, Calif.
Aug. 13 (letter of notification) 222,222 shares of common
stock
(par $1). Price—$1.35 per share.
Proceeds—To
pay obligations, purchase equipment, etc.
Office—1308
No. Patt Street, Anaheim,
Calif.
Underwriter—J. D.
Creger & Co., 124 North Bright Avenue, Whittier, Calif.
Price
W.
be
Brookridge
Development Corp.
Oct. 29 (letter of notification) 300,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For work¬
ing capital. Office—67-12 62nd St., Ridgewood, Queens,
supplied by amendment.
Stephens Investment Co., Inc., the selling stock¬
—
R.
holder.
&
To
(par $5).
Proceeds — To
Underwriter—Eastman Dillon,
Union Securities
Co., New York.
N. Y.
Atlantic Oil Corp., Tulsa, Okla.
April 30 filed 2,000,000 shares of common stock (par $1).
Price—$1.50 per share. Proceeds—For working capital
and general corporate purposes. Underwriter — To be
named
by amendment.
11
Corp., Philadelphia, Pa.
$600,000 of 6% convertible subordinated
filed
of the management
ment
debentures due June 15, 1968. Price—100% of
principal
amount. Proceeds—To retire indebtedness of the com¬
capital. Underwriters—Hallowell, Sulzberger & Co. and
Charles A. Taggart & Co., Inc., both of
Philadelphia, Pa.,
and Weill, Blauner & Co., Inc. of New York.
<
>
*
ceeds
Automation Development Mutual Fund, Inc.
Aug. 24 filed 300,000 shares of common stock. Price—At
Proceeds—For
investment.
Underwriter—Brown Manage¬
Delaware
—
capital
Price—At par ($1 per share). Pro¬
equipment, exploration, drilling, working
For
and
writer—To
other
be
general
named
corporate
purposes.
Under¬
Office—Washing¬
Burroughs Corp., Detroit, Mich.
Nov. 9 filed $30,154,700 of 4V&% convertible
subordinated
debentures due Dec. 1, 1981, being offered for
subscrip¬
Automation Industries Corp*,
tion by common stockholders on the basis of
Washington, D. C.
$100 of
May 11 fiied 179,000 shares of common stock (par $1). ..debentures for each 20 shares of stock held of record
on Nov.
Price—$5.25 per share.- Proceeds—For working capital'
30, 1956; rights to expire on Dec. 17, 1956. Price
and other corporate purposes.
—At par (flat). Proceeds—To reduce bank
Underwriter
loans and for
None. '
Harry Kahn, Jr., of Washington, D. C., is President and
expansion program; Underwriter
Lehman Brothers,
•—
—
Treasurer.
New York.
it Basic, Inc.
Nov. 23 (letter of
notification) an undetermined number
of shares of common stock to be offered
under1 the com¬
Centers Corp.,
Philadelphia, Pa.
July 30 filed $8,000,000 of 5V2% sinking fund debentures
due Aug. 1, 1971, and
1,600,000 shares of common stock
pany's Salaried Employees' Consolidated Profit Sharing
cent); subsequently amended to $4,500,000 of
Price
To be supplied by amendment.
Proceeds
About $4,100,000 will be used to
acquire
seven
shopping center sites-and a Penn Fruit. Super*
market adjacent to one of
them;.the balance will be used"
to develop
shopping centers at the seven sites and to
acquire and develop additional sites for related real;
&
of
$100,000.
(par
Retirement Plan.
845
Hanna Bldg., Cleveland,
Ohio.
estate
—For extensions and betterments to water
system. Office
Lafayette
St.,
Baton
None.
'
Rouge, La.
Nov.
15
filed
be
tional
sons
selected
22,000 shares of common stock (par $1).
supplied- by amendment.
Proceeds—To
Co.
corporate
purposes.^.
Incorporated, Philadelphia
Latter has agreed to purchase an addi-^
shares and reoffer them to ner--
common
by it at $1.10
per
share.
Offering—Date
Illinois Light Co*--—
(letter of notification) 5,555 shares of common
(no par) to be- offered to employees pursuant to
stock
purchase plan at 90%
the New York Stock
to
of notification) $50,000 of series A 6%
bonds, $50,000 of series B 6% debenture
207,500 shares of common stock (par 10 cents)
purchase.
or
(letter
bonds and
&
general
23
stock
Jx~.Beckjord Manufacturing Corp.
12
Blair
for
^Central
Nov.
—
Oct.
300,000
and
indefinite.
telling stockholders. Underwriters
Spencer Trask &
Co., Lee Higginson Corp., and Homer O'Connell &
Co.,
all of New York;
Laird, Bissell & Meeds, Wilmington,
Del.; and Chas. A. Parcells & Co.. Detroit, Mich.
debenture
—
and New York.
10-14)
Price—To
activities,
Underwriter
Underwriter—
Beauty Counselors Inc., Grosse Point, Md.
(12
—
-
>
Baton Rouge Water Works Co.
Sept. 11 (letter of notification) 6,946 shares of common
capital stock (no par). Price—$43 per share. Proceeds
—131
one
—
Underwriter—None.
of average closing price
on
Exchange for
a five-day period prior
construction, improvement
extension
Proceeds—For
•
of facilities or for general
corporate pur¬
Office—316 S. Jefferson Ave.,
Peoria, 111. Under¬
poses.
writer—None.
'
*
(par
90%
of
principal
development;
porate
$100).
Proceeds—To
construction.
new
&
(12/11)
Co.
and
bank
repay
Underwriter
loans
and
for
To be determined
Probable bidders: White, Weld
—
Shields
& Co.
(jointly); Kidder, Peabody &
Co., and Harriman Ripley & Co., Inc. (jcintly);
Kuhn,
Loeb & Co. and
Ladenburg, Thalmann & Co. (jointly);
Merrill
Lynch,
Pierce,
Fenner
&
Beane;
Lehman
Brothers; W. C. Langley & Co. and Eastman
Dillon,
,
Union Securities & Co.
The First Boston
(jointly); Blyth & Co., Inc., and
Corp. (jointly).
(EST)
99, Del.
.
received up to 11:30 a.m.
ket Street, Wilmington
Bids—Expected to be
on
Dec. 11 at 600 Mar¬
.
.
it Desert Empire Uranium Co;
>
Dec. 3 (letter of
notification) 10,000,000 shares of com¬
mon stock.
Price—At par (one cent per share). Proceeds
—For mining operations. Office—5651 Emile
St., Omaha
6, Neb. Underwriter—None. In addition," 7,000,000 shares
are
to
be
issued
Diversified
in
exchange for properties.
Oil
& Mining Corp.,
Denver, Colo. ; '
2,500,000 shares of 6% convertible noncumulative preferred stock,, first series
(par $1), and
Aug.
filed
29
warrants
to purchase 500,000 shares of common stock
(par 10 cents) to be offered for subscription initially by
a
stockholders in units of 25 preferred shares and
warrant to purchase five common shares.
Price—$25.50
unit
(each warrant will entitle the holder to pur¬
common share at
any time prior to Dec. 31,
1957 at $2 per share). Proceeds—To
repay mortgages, to
$1,312,500 of five-year 6% sinking fund debentures, and
per
chase
for
one
further
acquisitions
and working
by amendment.
capital.
Under¬
/
V
it Dixie Queen Mining, Inc.
Nov. 26 (letter of
notification) 300,000 shares of common
stock (par five cents). Price—$1
per share.
Proceeds—
For mining expenses.
Office
323 North Second
St.,
—
Phoenix, Ariz.
Underwriter—None.
Douglas Corp., Fort Collins, Colo. •
I
July 27 filed 4,000,000 shares of common stock (par one
cent). Price — 10 cents per shar-e. Proceeds
For ex¬
ploration, development and acquisition of properties and
for working capital.
Underwriter—Columbia Securities
Co., Denver, Colo. 1
,
amount.
expansion;
purposes.
Proceeds—For research and
equipment;
Underwriter
—
•
Eternalite, Inc., New Orleans, La.
(12/26-28)
Sept. 24 filed 200.000 shares of class A common.siock
(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—
Vickers Brothers, New York.
it Faraday
Nov.
be
and
other
cor-
None.
Century Controls Corp.
Oct. 4 (letter of
notification) $150,000 of 6% subordinate
convertible debentures.
Price—90% of principal amount
*
Mines,
Ltd*,
*
-
;
Toronto,
Canada
filed 595,000 shares of capital stock
(par $1) tb
30
issued
Which
Uranium
upon
were
exercise
issued
of
early'in
stock
1956
purchase
in
public offering of $8,500,000 of -5% %
warrants
connection
with
a
sinking fund de¬
bentures;. These warrants are exercisable on and after
Jan. .1, 1957.: Price—$1.75 per share:
Proceeds—To re¬
tire some of the debentures. Underwriter—None./
;
.
Flakewood
Nov.
Corp., San Francisco, Calif.
filed 100,000 ^shares of common stock.
14
Price—
At par
($10 per share). Proceeds—For construction of
'manufacturing plant and to provide working capital.
Underwriter—None/ Robert E. Evju is President.
^ Fleetwood
'
Century Controls Corp., Farmnigdale^ N. Y.
Aug. 27 filed $600,000 of 10-year 6% debentures. Price—
'
Light Co.
—
debentures.
Price—Not to exceed an aggregate
Proceeds—To purchase said stock. Office—
&
by competitive bidding.
writer—To be named
later..
•
ton, D. C. Distributor—Automation Development Secu¬
rities Co., Inc., Washington, D. C.
Power
Nov. 14 filed 80,000 shares of cumulative
preferred stock
common
shares to promoters.
.
<
market.
type.
Co., 833 Alaska St., Honolulu, Hawaii.
Burma Shore Mines, Ltd.,
Toronto, Canada
July 26 filed 600,000 shares of capital stock, of which
500,000 shares are to be offered publicly, and 100,000
to its affiliates for money borrowed for working
pany
*
Investment Co.,
Ltd., Honolulu, T. H.
July 11 filed 60,075 shares of common stock (par $1).
Price—At net asset value, plus a selling commission of'
7%%. of the offering price. Proceeds—For investment.
Business—A diversified, open-end investment
company
Atlas Credit
June
Underwriter—Wagner & Co., New York.
Brown
Office—408 West Seventh
St., Fort Worth 2, Texas.
Underwriter—None.
—None.
(12/11)
Nov. 16 filed 840,000 shares of common stock
num¬
(to aggregate $297,547.50)
to be "issued under the
company's Thrift Plan for Em¬
ployees. Proceeds—To purchase stock on the open mar¬
ket.
Underwriter—None.
stock
Co.
capital,
ber of .shares of common stock
-
Nov. 20
•
share).
etc. Under writers—
Cruttenden, Podesta & Co., both
working
it Community Public Service Co.
27 (letter of
notification) an undetermined
Bridgehampton Road Races Corp.
(letter of notification) 55,075 shares of common
(par $1). Price—$5 per share. Proceeds—For con¬
struction, improvements, etc. Business—To construct and
operate an automobile road racing course.
Address—
P. O. Box 506, Bridgehampton, L. I., N. Y. Underwriter
Fain is President.
For
—
Nov.
sharei of
borfdC>~PHtoe---'
capital stock. Price—
Proceeds—For acquisition of
Developers,
Julien Collins 8c Co. and
of Chicago, 111.
it Bonista
Nov.
Finance
Co.
(letter
convector
common
Commercial Discount Corp.,
Chicago (12/11)*
Nov. 21 filed 100,000 shares of
6% cumulative and par¬
ticipating preferred stock. Price—At par ($10 per
Co., Newark, N. J.
mining
electric
of
share).
Inc.
—
"Unit-Inch"
per
operating capital.
production equipment and materials; inven¬
and working capital.
Business
Manufactures
it Amalgamated Minerals, Ltd.
(letter of notification) 3,000,000 shares of com¬
mon stock
(par five cents). Price—10 cents per share.
($3,000
and
$500
chinery;
Nov. 23
ISSUE
plant site, construction of a mill
building, purchase
installation of machinery and
equipment, and as
Underwriter — Industry
a
shares
100
units,
REVISED
Plywood, Inc., Rainier, Ore.
Sept. 4 filed 200 shares
of stock).
Price: Of series "A" and "B"
each; and of series "C" units, $100 each.
Proceeds—To acquire or lease plant; for dies and ma¬
Proceeds—To purchase stock off the open mar¬
Office—^406 W. 34th St., Kansas City, Mo. Under¬
$50,000.
ket.
Chinook
a
PREVIOUS
ITEMS
•
in
offered
consisting of
Employees
an
Registration
ADDITIONS
SINCE
units as follows: 100 "A" units (each
$500 "A" bond and 50 shares of stock);
100 "B" units (each consisting of a $500 "B" bond and 50
shares of stock); and 1,975 "C" units (each
consisting
26
employees
be
to
Inc.
lined
(letter of notification) an undetermined num*ber of shares of common stock (no par) to be offered
Nov.
* INDICATES
in
Nov.
27
common
Motel
Corp.
J
(letter of notification) 15,000 shares of class A
stock (par $1) and 1,432 shares of class B com¬
mon
stock (par $1).
Price—Of class A common, $7 per
share, and of class B common, $1 per share. Proceeds-rFor completion of purchase of 3002 Pacific
Ave., Atlantic
City, N. J. and for working capital. Office—Suite 808-
,121
South
Broad
None.
St., Philadelphia 7, Pa.
''
.
•
Underwriter—
;•
•
(in denominations of $100 each). Proceeds
To pay
notes
payable, reduce accounts payable and to
pay
other current
liabilities; also for working capital. Office
Florida Growth Fund, Inc.
(12/10)
Nov. 23 filed 2,000,000 shares of .common
—Allen
Underwriter—Frank B. Bateman, Ltd., Palm
Beach, Fla.
—
Boulevard, Farmingdale, L. I., N. Y. Underwriter
•
cents).
Price—$5
per
share.
(
:
stock (par 10
Proceeds—For investment.
—None.
it Chart-Pak, Inc.
New York
Boston
Philadelphia
San Francisco
Private Wires
Pittsburgh
to
all
offices
Chicago
Cleveland
Nov.
27
(letter of notification) 4,150 shares of common
(par $2.50). Price—$12 per share. Proceeds—For
the purchase of land and construction of
plant and re¬
payment of debts. Office—100 Lincoln
stock
Conn.
Underwriter—None.
Florida Power & Light Co. (12/11)
13 filed. $15,000,000 of first mortgage
Nov.
Ave., Stamford,
bonds due
loans and fo? construc¬
Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Merrill Lynch, Pierce, Fenner & Beane and Kidder,
Peabody & Co. (jointly); The First Boston Corp.; Blyth
1986.
tion
Proceeds—To repay bank
program.
Volume
184
Number 5592
.
.
The Commercial and Financial Chronicle
.
(2427)
& Co., Inc.; White, Weld & Co.; Lehman Brothei
—Tentatively expected to be received up to 13
(EST) on Dec. 11.
•
Bids
a.m.
,
stock
tion.
11
filed $2,000,000 of subordinated debentures due
1971 and 450,000 shares of common stock
(par 10 cents),
of which $1,500,000 of debentures and all of the stock
Angeles, Calif.
publicly in units of~$500 of debentures
and 150 shares of
stock; the remaining $500,000 of deben¬
tures to
to
about
be
sold
75%
Texas
Price—To b£~'supplied by amendment.
capital, etc., and from sale of debentures
General
Corp.
investments
in
for
stock
equities
Under¬
the
and
payable
Orleans, La.
Russ
&
Co.,
Inc., San Antonio,
Postponed.
Texas.
Offering—
l&'-C'.M'-
,
Underwriter—None.
3V'
•
Genisco, Inc., Los Angeles, Calif. (12/17-21)
$300,000 of 12-year 6% subordinated deben¬
due Dec. 1, 1968 (with stock
purchase warrants
attached) and 33,000 shares of common stock (par $1),
for
lnc«r<Washington, D. C.
:f
Aug. 17 filed $2,000,000 of 6% subordinated sinking hind
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
unit; ^Proceeds—For expan¬
warrants.
Price—$500 per
working captal. Underwriter — None named.
Offering to be made through selected dealers.
v-.VM-7
sion
and
.
other
general
corporate
purposes. :
Van
^Gold Mountain Lodge,
Inc., Durango, Colo.
Aug. 23 filed 5,000 shares of class A voting common
stock
(par
due
of
$1),
295,000 shares of class B non-voting
(par $1); and $700,000 of 4% debentures
1975, to be offered for sale in the States
stock
■common
Dec.
31,
Texas and Colorado in units of 50 shares of class A
capital. Business ■
Underwriter—None.
Price
thereof
1956
At par
-—
held; rights to
ex¬
(in denominations of
Proceeds—For working capital.
Office—
St., Long Island City 1, N. Y. Underwriter
;■
Consumer
Finance
v.
';
'■
Corp.
filed
Proceeds—To reduce bank loans.
Underwriter-
Alstyne, Noel & Co., New York.
★ Hancock Electronics Corp., Redwood City Calif*
Nov. 19 (letter of notification) 300,000 shares of com¬
stock.
mon
Price—At par ($1 per share).
research and
vision.
Calif.
Underwriter—
Wilson, Johnson & Higgins; San Francisco, Calif.; and
Lester, Ryons & Co., Los Angeles, Calif.
fraction
■
26
ment.
machinery and tools, and to increase inventories and
for
'General Credit,
hotel.
(12/17-19)!
75,000 shares of 60-cent convertible pre¬
ferred stock (par $10). Price—To be
supplied by amend¬
Nov.
,
(letter of notification) 500 shares of 6% cumu¬
of which 23,000 shares are to be offered for the
lative preferred stock. Price—At par ($100
account
per share).
Price — To be supplied by
Proceeds—For repayment of short term notes and work¬ / of a selling stockholder.
amendment. Proceeds—To retire short-term
ing capital." Office^-313 Jackson
borrowings,
St., Sioux City, -Iowa.
30th
Guardian
tures
Nov. 23
Dec. 28.
each),
38-15
or
—None.
Nov. 23 filed
★ Gaynor-Bagstad Co.
stock,
on
$100
Corp., both of New York; and Mitchum, Jones & Templeton, Los Angeles, Calif.
to
-
note
working
resort
the basis of $100 of debentures for each
200 shares of
pire
tion with the
writers—Howard, Weil, Labouisse, Friedrichs & Co., New
Orleans, La.; Rauscher, Pierce & Co., Inc., Dallas. Tpxas:
-
to Texas Indus¬
retire a subordinated promissory
latter firm.
Office—New
and
year-round
common
1957 construction program; also for other
general corporate purposes.
Underwriters—Paine, Web¬
ber, Jackson & Curtis and Stone & Webster Securities
tries to
construction
5,
on
of
subsidiaries and for temporary advances to subsidiaries
for reduction of their bank loans and for
use in connec-
for working
new
• Guardian
Chemical Corp.
Oct. 29 (letter of notification)
$250,000 of 6% convertible
debentures due Bee. 1, 1966 being offered for
subscrip¬
tion by common stockholders of record Nov.
(12/10)
common
shares " Of" class B stock and one' $7,000
Price—$10,000 per unit. Proceeds—FOr pur¬
property, remodeling of present main building,
Operates
.
Telephone
additional
Proceeds—From
sale of units to retire short-term loans and
•
2,950
chase of
Nov, 20 filed 800,000 shares ©f common stock
(par $10).
Price—To be supplied
by amendment.
Proceeds—For
Industries, Inc., which owns
outstanding common stock.
l5i) Freiberg's
Price—To be supplied by amendment.
repay bank loans and for new construc¬
Underwriters—Paine, Webber, Jackson & Curtis,
York, and Mitchum, Jones & Templeton, Los
New
1
to be offered
are
stock,
debenture.
(par $20).
Proceeds—To
Freiberg Mahogany Co.
Oct.
General Telephone Co. of California
(1/10)
Nov. 13 filed 500,000 shares of 5% cumulative
preferred
47
-
Office—2553
Middlefield
Road, Redwood City,
Underwriter—Daniel Reeves & Co., Beverly Hflls,
/v.
o'/
Calif.
•
Proceeds—For
development. Business—Closed circuit tele¬
Hartfield Stores, Inc.
2 filed 240,000 shares
Oct.
Price—$9
of
stock
common
(par $1).
per share. Proceeds—To certain selling stock¬
Underwriter—Van Alstyne, Noel & Co., New
holders.
York; and Johnston.
Lemon
&
Co., Washington, D.
V-V'v
Offering—Postponed.
★ Hawaiian Pineapple Co., Ltd.
(12/28)
Nov. 29 filed 413,920 shares of common stock (par
$7.50)
to be offered for subscription by common stockholders of
NEW
ISSUE
record
CALENDAR
Dec.
28,
1956
the basis of
on
each four shares held.
one
new
share for
Price—To be supplied by amend¬
ment.
December
6
(Thursday)
New York Central RR
(Bids
invited)
December 10
$8,055,000
(Bids
to
be
(McLaughlin,
Beauty Counselors Inc.—;
(Spencer
Trask
&
&
Co.;
Co.;
Lee
Laird,
Higginson
Bissell
Parcells
.
Florida
Growth
&
(Paine.
K D I
B.
&
Ltd.)
&
&
Stone
Holman
&
Co.,
Inc.)
M.
Loeb,
(Paul
invited)
Co.,
Dillon,
Commercial
C.
Co.)
'about
&
Co.)
Union
Co.
&
Power
(Bids
.
;
Power
to
&
(Bids
,
11
^
(Tuesday)
Securities
&
Co.)
«
Crittenden,
be
840,000
shares
Podes.a
&
$3,000,000
-
$20,000,000
.
^>
P.
(Lee
7\.
Brooks
W.
&
\
P.
130.000
(Dillon,
Read
Stores
Brcoks
W.
Realty
Sachs
&
Inc.)
13
Inc.'f#
&
and
Electronics
to
&
Inc.)
Brothers)
Guardian
&
Higgins
and
debentures
Consumer
(Van
be
underwritten
(Newborg
&
Webber,
Jones
/
&
Co. of California
Jackson
&
to
Noel
7,'.;^....'
be
invited)
be
18
to
Co.
January
to
be
(Bids
to
be
invited)
Equip. Trust Ctfs.
invited
i
about
Equip. Trust Ctfs.
$5*340,000
of Interna¬
exchange for all the outstand¬
stock of Investors Financial Corp.
Investment
Corp. of Florida
Aug. 24 filed $515,000 of $60 cumulative preferred stock
to b.e offered in units of $1,000 each and 5,150 shares of
stock
10
at
each
to be
cents
offered
to purchasers of preferred
share at rate of ten shares for
bought. Proceeds—For working
per
preferred share
Office—Fort
Lauderdale,
Fla.
Underwriter—
Jacobs
(F. L.)
Co.
Oct. 4 filed $3,000,000 of 6% convertible debentures due
Nov. 1, 1966. Price—100% of principal amount. Proceeds
•
K
D
s
I
Corp., Rochester, N. Y. (12/14)
Nov. 16 filed 81,428 shares of 7% participating cumula¬
tive 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
Underwriter—McDonald, Holman &
Co., Inc., New York.
Kerr
Income
Fund, Inc., Los Angeles, Calif.
July 30 filed 100,000 shares of capital stock (par $1), of
which 9,300 shares will be initially sold at $10.98 per
$4,650,000
(Tuesday)
Cincinnati, New Orleans, Texas &
Pacific Ry
Equip. Trust Ctfs.
share.
to
Additional shares will be offered at
the net asset value of the Fund,
plus
a
a
price equal
sales load of
—
to
invited)
be
approximately
$4,000,000)
(Eids
to
be
.nvited)
Bonds
$5,000,000
Southwestern
Gas
January
&
to
be
29,
(Bids
Oklahoma
Gas
to
be
Electric
invited)
Co
..Bonds
$10,000,030
1957
(Tuesday)
& Tel. Co
invited)
..Debentures
$35,000,000
& Electric Co
(Bids
to
be
invited)
of such
Manager
price. Proceeds—For
—
California Fund
investment. Invest¬
Investment
Co., of
Kinney Loan & Finance Co.
Sept. 11 (letter of notification) $150,000 of 6%
sinking
which John Kerr is also President.
fund capital debentures, series A, due Sept.
1, 1971. Price
—At par in denominations of $1,000 each.
Proceeds—
For working capital. Office — 911 Tenth
Colo.
and
Bonds
$20,000,000
8%%
ment
(Bias
(Bids
$2,250,000
185,000 shares each
in
Inc. International has been informed
of Equity common owned by Fre¬
mont Corp. will be tendered in acceptance of the Equity
exchange offer. Underwriter—None.
corporate purposes.
(Wednesday"
Norfolk & Western Ry
(Bids
the
stock
common
in exchange for
Equity and Finan¬
stock
stock.
,
Bonds
$20,000,000
— may
be underwritten by
Blyth & Co., Inc.) 105,000 shares
16
receive
common
common
common
derwriters—McLaughlin, Cryan & Co. and Gearhart &
Otis, Inc., both of New York.
Common
and
Proceeds—
—To pay short-term loans and for working capital. Un¬
(Tuesday)
invited)
stockholders
Staats--&
(Tuesday)
Atlantic Coast Line RR.
$4,875,000
Valley National Bank
(Offering
v
None.
(Bids to be invited) $1,400,000
to
International
to
are
tional
Equip. Trust Ctfs.
Mountain States Tel.
December
of
capital.
and Mitchum,
$10,000,000
January 15, 1957
•
$287,500
& Co )
Preferred
Curtis
New Jersey, Indiana & Illinois RR.—Equip. Tr.Ctfs.
Preferred
-—.Common
Alstyne,
&
Templeton)
V
Underwriter—Johnston, Lemon &
share of Financial
stock
$750,000
Common
Co.)
(Thursday)
Southern Indiana Gas & Electric Co
Corp
Co.)
Marie Reid
(Van
(Paine,
*
1957
January 22, 1957
and Lester, Ryons & Co.)
33,«G0 shares of stock
Noel
shares
'-r'.
Ctfs.
by
shares
Peerless Life Insurance Co
Rose
Bonds
$25,000,000
(Monday)
Finance
Alstyne,
Trust
(Bids to be invited) about $2,000,000
10,
Savoy-
Equity Corp. common stock, and the remaining 185,000.
shares by Financial General Corp. on a basis of 1%
by
'
Equip.
(Bids
Debentures and Common ''
Johnson
$300,000
Common
underwritten
be
of
and Group Equities,
that 142,000 shares
$1,000,000
Louisiana Power & Light Co
$1,000,000
183,333
17
Ross)
&
80%
Price—At 100% of principal amount.
ing shares of
(Wednesday)
stockholders—to
to
January
/"
Common
Co.,
Debentures
RR
William R.
Inc.)
Co.,
December
,
Wabash
..Debentures
&
Genisco, Inc.
(Wilson,
;
(Friday)
stockholders—to
Perkins
Inc.).;..
1
J._
Lehman
Ling Electronics Inc..
(Offering
1957
share
29 filed 370,000 shares of common stock (par 10
cents), of which 185,000 shares are to be offered by The
Equity Corp. on a share-for-share basis in exchange for
cial
$35,000,000
Missouri Pacific RR
Debentures
Inc
(Perkins
Co.
$40,000,000
Corp.__
Co.
7' C
(Tuesday)
invited)
least
For working capital.
common
(Thursday)
December 14
Ling
(Offering
General Telephone
Co.
shares
Co.
&
December
(Goldman,
1957
be
V„-hr.Leftwich
(Bids
and
Texas Eastern Transmission Corp
May
to
.Common
Corp.
$9,000,000
Bank of Commerce,
Memphis, Tenn.
v
Corp.
Higginson
invited)
National
0
$i,oco,ooo
Kromex
Preferred
1
$3,000,000
(Wednesday)
and
Bonds
$20,000,000
Co.)
Debentures
Corp.
be
B
Nov.
:
Light Co
may
(Bids
Bonds
^
Higginson
$20,000,000
invited)
January 8,
$9,300,000
EST)
December 12
Corp
be
class
^ International Capital Corp., Des Moines, Iowa
(Monday)
invited)
and
offer will not become effective
of thO class A and class B stock pt
Co., Washington, D. C.
$9,600,000
New England Tel. & Tel. Co
:
3
Co.___
a.m;
to
January 9,
EST)
CST)
noon
11
be
A
Savoy-Plaza is tendered.
and D.
-
Preferred
Equip. Trust Ctfs.
Power
(Bids
to
class
exchange
Washington, D. C.
Sept. 28 filed $1,000,000 of time certificates, series B, C
(Thursday)
invited)
at
each
International Bank of
•*
<
Equip. Trust Ctfs.
be
The
Dean
Bonds
&
(Bids
;
.
Preferred
invited)
11:30 a.m.
to
for
one
!___
Corp
and
(Bids
Common
Light Co..
(Bids
Pacific
(Leo
by
Pacific Power & Lisht Co
...
Pacific Power
Co
Illinois Central RR...
Kromex
Common
Underwritten
Co
(Bids
.Preferred
Delaware Power & Light Co
Sierra
Ltd
—
January 7, 1957
$500,000
$7,500,010
filed
Hotels
unless
(Friday)
Co
(Eids
Common
&
Kimball
Discount
Collins
\
Co.,
stockholders
Pacific
and
$1,000,000
,
28
Witter & Co.) 413,920 shares
Southern
Idaho
+___
December
Florida
to
$900,000
January 3, 1957
Debentures
$22,481,000
Inc
Rhoades
Arkansas Louisiana Gas
(Julien
Pineapple
-v.vj;'.
$499,996
:
People's Finance Corp.
-i
;
Debentures
be
to
Northeast Airlines
•V
Hawaiian
(Offering
shares
Hotels
Corp.
278,733 shares of 5%% cumulative con¬
vertible voting preferred stock, series A (par
$25) and
278,733 shares of common stock (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¬
ferred and three shares of common stock of Hilton
23
Plaza.
Securities
800,000
Valley Investing Co.; Alien &
Gregory & Sons) $694,900
(Bids
(Eastman
(Wednesday)
Brothers)
December
Webster
Templeton I
(City of)_
4
(Carl
Common
$1,243,750
Class A Common
(Vickers
$10,000,000
Airlines,. Inc.;
(Mohawk
Montreal
Co.)
Preferred
(McDonald,
.
&
Eternalite, Inc
';
Common
Corp
Mohawk
Cryan
December 26
O'Connell
^Common
Curtis;
Jones
Hilton
Nov.
(Thursday)
A.
/•/'■'"T"
Corp
Jackson
Mi tchum
and
Homer
Chas.
and
shares
22,000
Bateman,
Telephone
Webber,
Corp.,
Corp.;
Meeds;
Co.)
Fund, Inc.____£
(Frank
General
&
20
$7,700,000
Common
*
>
about
Maine Fidelity Fire & Casualty Co
$1,380,000
Calif.
Equip. Trust Ctfs.
invited)
December
Equip. Trust Ctfs.
EST)
noon
(Wednesday)
Northern Pacific Ry
:
(Monday)
Baltimore & Ohio RR
(Bids
December 19
Equip. Trust Ctfs.
be
to
Proceeds—To reduce bank loans and for working
capital. Underwriter—Dean Witter & Co., San Francisco,
Underwriter—Wachob-Bender
St., Greeley,
Corp., o)f Omaha
Lincoln, Neb.
Continued
on
page
48
43
The Commercial and Financial Chronicle
(2428)
Continued
•
(12/12)
Ohio
tures
1976.
steel
writer—C.
purchase machinery and equipment, to retire
indebtedness and for working capital.
Business—Alu¬
minum and chrome-plated kitchenware and
giftware.
Underwriters—Lee Higginson Corp. and P. W. Brooks &
ceeds—To
York 17,
J.
Ohio
• Lefevre Chemical Co.
3 (letter of notification) 33,333 shares of capital
stock (par 50 cents), of which 7,500 shares are to be
offered for account of two selling stockholders, and 25,Dec.
shares
for
account
•
of
company.
Price—$1.50
per
working capital. Office—1639 West
share. Proceeds—For
Main
Underwriter—None.
St., Oklahoma City, Okla.
McNeill & Libby, Chicago, III.
$10,468,500 of convertible sinking fund
•debentures due Dec. 15, 1976, to be offered for subscrip¬
tion by common stockholders at the rate of $100 of
debentures for each 35 shares held as of Nov. 29, 1956;
rights to expire on Dec. 17. Price—At par (flat). Pro¬
Libby,
filed
9
Nov.
ceeds
Underwriter
loans.
bank
reduce
To
—
—
Glore
Forgan & Co., Chicago, 111.
•
McNeill
Libby,
Nov.
filed
9
shares of
610,664
III.
Chicago,
Libby,
&
stock
common
(par $7)
being offered for subscription by common stockholders
at the rate of one new share for each six shares held
Nov.
of
.as
29; rights
Price—$12
17.
to expire on Dec.
share.
Proceeds—To reduce bank loans.
writer—Glore, Forgan & Co., Chicago, 111.
per
Under¬
★ Maine Fidelity
filed
28
15 filed
-Sept.
12,
at the
1956
share
each
for
of two shares of new stock
stockholders, $10 per
rate
Price—To
held.
Proceeds—For ex¬
share; and to public, $15 per share.
pansion and working capital. Underwriter—None. Pub¬
lic offering will be made by employees of the company
«nd qualified licensee! \dealers,
•
„
Inc.,
Ling Electronicsr
(12/10) '
Calif.
Angeles,
Los
Electronics,
Ling
filed
Los
Inc.,
Angeles,
Calif.
holders at the rate of
held.
Price—$3
porate
one
Proceeds—For general
Underwriter
purposes.
—
&
Perkins
Co.,
Ohio
and
for
for additions to property
company
other
purposes.
Office—203
Underwriter—None.
corporate
St., Lorain, Ohio.
Los Angeles Drug Co.
Oct. 11 filed $500,000 of
6% convertible subordinated
1, 1971. Price—At par (indenominations of $500 and $1,000 each). Proceeds—For equip¬
ment, inventory and working capital.
Underwriter—
Quincy Cass Associates, Los Angeles, Calif.
• Louisiana Power & Light Co. (1/15)
4 filed $20,000,000 of first mortgage
Dec.
Proceeds—For
struction
program.
reduction
of
Underwriter—To
and
due
con¬
determined
be
&
Co.; Blyth & Co., Inc.; Merrill Lynch, Pierce, Fenner
Beane, Kidder, Peabodv & Co. and Harriman Ripley
Co. Inc.
(jointly); Salomon Bros. & Hutzler; The
First Boston Corp., and Glore, Forgan & Co.
.{-jointly);
White, Weld & Co. and Shields & Co. (jointly). Bids
—Expected to be received about Jan. 15, 1957.
&
&
Loyal American Life Insurance Co., Inc.
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
each three shares held
(with an oversubscription privi¬
lege). Price—To be supplied by amendment. Proceeds
—To increase capital and surplus.
Underwriters—J. H.
Goddard & Co., Iroc., Boston,
Mass., and
& Farish, Montgomery, Ala.
Thornton, Mohr
stock
rights
share.
to
held
(with
expire
on
an
over-subscription
Dec.
17.
Price
•—
Proceeds
To
Foremost
Dairies,
selling stockholder. Office
San Leandro,
Calif. Underwriters—Allen &
Co., New York, and Dean
Witter & Co., San Francisco, Calif.
Inc.,
the
note
and
Underwriter—.
Airlines,
20 filed
an
Inc.
(12/10)
undetermined
number
of
shares
of
$1
offered
by
to
other
stockholders
which
them.
remaiq
A/
v
—
James A. Grazier of Whaleysville
City, Md., is Chairman of the Board.
Lt.
Col.
Ohio
Inc., New York
and
Ocean
Power Co.
Sept. 20 filed 60,000 shares of cumulative preferred stock
(par $100). Proceeds—For construction program. Under¬
writer—To be determined
by competitive bidding.
Prob¬
able bidders: The First Boston Corp.; Blyth & Co.,
Inc.;
Co.; Eastman Dillon, Union Securities & Co.
and Salomon Bros. & Hutzler (jointly); Harriman Ripley
Kuhn Loeb &
Co., Inc. and Stone & Webster Securities Corp. (joint¬
ly); Lehman Brothers. Bids—The two received up to 11
(EST) on Oct. 30 were rejected.
Mohawk
a.m.
Orefield
Proceeds
For
general corporate purposes.
Under¬
writers—Mohawk Valley Investing Co.; Allen & Co., and
supplied
16
filed
To
be
(City of)
(12/10)
$22,481,000 of 1956 U. S.
currency
issues
competitive
Proceeds
be
—
For
later.
named
exploration
Michael
Tzo-
Pari-Mutuel
Equipment Corp.
(letter of notification) 60,000 shares of com¬
mon stock (par $1).
Price—$5 per share. Proceeds—For
construction of 250 race ticket machines; for' purchase
Price—To be supplied by amendment. Pro¬
local improvements.
Underwriter—
by
Canada
panakis, of Miami, Fla., and Denis Coiivas, of Montreal,
Canada, are large stockholders.
Aug.
finance
determined
by amendment.
Underwriter—To
costs.
Gregory & Sons.
Montreal
Mining Corp., Montreal,
Oct. 15 filed 900,000 shares of capital stock (par $1), of
which 200,000 shares are now outstanding. Price—To be
bidding.
Probable
bidders: Shields & Co., Halsey, Stuart & Co.
ard
& Hart and
Salomon Bros. & Hutzler
Inc., Sav(jointly);
24
of 40 machines for issuance of
and for
Lehman
Brothers, White,
Weld & Co., Eastman
Dillon, Union Securities & Co., and Blyth & Co., Inc.
(jointly). Bids—Expected to be received up to 11 a.m.
(EST) on Dec. 10.
Madison
derwriter—Wistor
New
•
National
By-Products, Inc.
v
(letter of notification) 2,000 shares of common
stock (par $1). Price—$5 per share. Proceeds—To
pay
York
race
R.
tickets;
purposes.
Avenue, New York 17, N. Y. Un¬
Smith & Co., 40 East 54th Street,
22, N. Y.
Peerless
Oct.
semi-blank
working capital and general corporate
Office—527
Life
Insurance
Co.
(12/17-21)
8
(letter of notification) 11,500 shares of common
(no par). Price—$25 per share. Proceeds — For
general corporate purposes. Office — 1310 Gulf States
Bldg., 109 North Akard St., Dallas, Tex. Underwriter—
19
stock
Federal
estate taxes.
Office—800 Bankers Irust Bldg.,
Moines, Iowa. Underwriter—T. C. Henderson & Co.,
Inc., Des Moines, Iowa.
Newborg & Co., New York.
•
Nov.
Des
National
Cash
People's Finance Corp. (12/10-14)
16 filed 50,000 shares of 60-cent cumulative con¬
vertible preferred stock (par $5). Price—$10 per share.
Register Co.
9 filed $28,170,500 412% convertible subordinated
debentures due Dec. 15, 1981, being offered for subscrip¬
tion by common stockholders of record Dec. 4, 1956 at
the rate of $100 of debentures for each 25 shares of stock
held; rights to expire
on
Dec.
19,
1956.
Price—At
Proceeds—To reduce bank loans and for
Office—Denver,
& Co., Chicago.
Oct. 29 filed 300,000
customers'
accounts receivable, and to carry increased
inventories; also for improvement and replacement of
plant and other production facilities.
Underwriter—
Dillon, Read & Co. Inc., New York.
—
mechanical device.
and
National Life of Anierica, Mitchell, S. Dak.
Sept. 21 filed 86,784.7 Shares of common stocic (par $5)
to be offered for subscription
by each of the
•
Pittsburgh Consolidation Coal Co.
3 filed 2,678,697 shares of common stock (par $1)
being offered in exchange for common stock of Pocahon¬
23,279 policyholders on and as of July 31, 1956 at the rate
of IVz shares of such stock and the balance of the shares
be
exchangeable for Founders
issued bv National Life as
certain
life
insurance
Proceeds—For
certificates
a
part
or
afid
tas Fuel Co. on the basis of
each
cou¬
feature
of
policies.
(EST)
Price—$7.50 per share.
working capital and other coiporate pur¬
common
Tenn., and
postponed.
stockholders.
Equitable
—
New
Office
—
Little
Rock,
Ark.
Securities
York, N. Y.
The offer, which
effective, has been extended until 3
has
p.m.
Feb. 1, 1957.
filed
Alai, Inc.
$1,500,000
of 12-year 6% first mortgage
1968, and 300,000 shares of common stock (par
$1) to be offered in units of a $500 bond and 100 shares
of stock. Price—May be $675 per unit.
Proceeds — For
stock
$2) and 50,000 shares of class B common stock
(par $2). Price—To be supplied by amendment. Pioceeds
selling
27
2% shares of Pittsburgh for
share.
bonds due
(par
Underwriter
on
common
Puerto Rican Jai
July
Insurance Co.
Nov. 15, 1955 filed 50,000 shares of class A
—To
Pocahontas
been declared
Underwriter—None.
poses.
Underwriters—A. G. Edwards & Sons
Dempsey-Tegeler & Co., both of St. Louis, Mo.
Oct.
company's
pons
working capital.
Underwriter—Paul C. Kimball
Pigeon Hole Parking of St. Louis, Inc.
shares of class A common stock (par
25 cents).
Price—To be supplied by amendment (pro¬
posed maximum offering price is $3.25 per share). Pro¬
ceeds
To
construct
and
operate
two multi-level
automobile
parking structures,
utilizing a patented
par.
Proceeds—For working capital to finance company's ex¬
panding volume of sales and the consequent increase in
to
Colo.
Corp., Nashville,
Offering — Indefinitely
*
construction
of fronton
and
related
activities.
Office—
San
Juan, Puerto Rico.
Underwriters—Crerie & Co.,
Houston, Texas; Dixon Bretscher Noonan, Inc., Spring¬
field, 111.; and Aetna Securities Corp., New York. Offer¬
ing—Date indefinite.
—
—
IMacinar, Inc.
July 23 (letter of notification) 400,000 shares of common
stock (par 50 cents). Price—75 cents per share. Proceeds
short-term
plant.
1976, and 4,000,000 shares of common stock (par one
cent) 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. Underwriter
Paul Korns, a director, of Johnstown, Pa.
filed
National Old Line
Lucky Stores, Inc.
Oct. 11 filed 630,000 shares of common stock
(par $1.25)
being offered for subscription by common stockholders
of Foremost Dairies, Inc. of
recqrd Nov. 30. In the ratio
of one Lucky Stores share for each 12
y2 shares of Fore¬
coqrimon
a
new
Ocean City Pier Corp., Berlin, Md.
~
\ /
Oct. 4 filed $2,000,000 of 6% debenture bonds due July 1,
Airlines, Inc., Ithaca, N. Y. (12/10-14)
Oct. 26 filed $794,000 of 5V2% convertible subordinated
debentures due Aug. 1, 1966, of which $100,000
principal
amount will be offered in exchange for
outstanding 6%
convertible notes. Price—To be supplied by amendment.
•
most
retirement of
additional
;
Nov.
bonds
loans
bank
by
competitive bidding.
Probable bidders: Halsey, Stuart
& Co. Inc.; Equitable Securities
Corp. and Eastman
Dillon, Union Securities & Cb. (jointly); Kuhn, Loeb
privilege);
$11.25 per
basis.
the
and
unsubscribed
located in South Central Peru, and for general
corporate
purposes.
Underwriter — Gearhart & Otis, Inc., New
June
debentures due Aug.
1987.
debts
shares
of
Corp., Spokane, Wash.
Inc.,
Telephone Co.
of notification) 4,994 shares of common
stock
(no par) being offered to stockholders on the
basis of one share for each 20 shares of record Sept. 24;
rights to expire Jan. 2, 1957. Price—$25 per share. Pro¬
in
Telephone & Telegraph Co.
2,000 shares of common
subscription by stockholders on
Price—At par ($100 per share K
for
value common stock (for an aggregate of approxi¬
mately $7,500,000), of which approximately 44% of the
shares are to be offered for subscription by common
stockholders of record Dec. 7, 1956, other than Atlas
Corp.; (rights to expire on Dec. 17); approximately 6% *
of the shares to Atlas Corp.; and the balance of the
shares, or 50% of the offering, will be offered to the
public. Price—To be supplied by amendment. Proceeds
—For expansion of operations; toward payment of 10
aircraft and related equipment; and for generaL cor-£
porate purposes. Underwriter—Carl M. Loeb, Rhoades
& Co., New York. Atlas Corp. may purchase a portion
2,500,000 shares of common stock (par
cent). Price—$1.50 per share. Proceeds—To acquire
$2,400,000 the Chavin lead-zinc-copper-silver mine
for
Of¬
par
Mines, Inc., Wellpinit, Wash. "
(letter of notification) 223,980 shares of common
(par. 10 cents). Price—$1.25 per share. Proceeds—
To go tJflselling stockholders. Underwriter — Standard
one
offered
Northeast
Nov.
Midnite
22
work.
None.
-
debentures.
(letter
"West Ninth
other
Michigan Wisconsin Pipe Line Co.
July 2 filed $25,000,000 of first mortgage pipe line bonds
due 1976.
Proceeds—To pay off short term bank loans
and for construction program.
Underwriter —~ To be
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
for bids has been set.
Company has received a $25,0U0,000 bank loan to mature Sept. 30, 1957.
Minerals,
be
Proceeds—For
•
June
construction
for
and
(letter of notification)
to
one-for-five
a
Realty Corp.
(12/13)
$25,000,000 general mortgage bonds due
Feb. 15, 1977.
Price — To be supplied by amendment.
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.
Securities
14
stock
filed
ceeds—To
ceeds—To reimburse
2,900
Stores
23
Nov.
Eorain
1
notification)
•
May
cor¬
Dallas, Texas.
Oct.
Nov.
of
None.
share for each six shares
new
share.
per
Norfolk & Carolina
Inc.
(letter
shares of capital
stock.
Price—At par ($100 per share).
Proceeds—For
expenses in manufacturing automatic controls for sale to
manufacturers using such controls
in their products.
Address—R. F. D. No. 2, Goshen, Ind. Underwriter—
Nov.
bonds;
new
Underwriter—Kidder, Peabody & Co., New York.
fering—Indefinitely postponed.
—
of common stock (par 50
cents) to be offered for subscription by common stock¬
shares
183,333
26
the
for
same
Proceeds
&
(12/10)
5
Nov.
•
$1,000,000 of 6% convertible debentures due
Dec. 1, 1966.
Price—100% and accrued interest. Pro¬
ceeds—For general corporate purposes.
Underwriter—
Perkins & Co., Inc., Dallas, Texas.
Nov.
shares
Price—$12.50 per share.
York. Offering—Postponed.
■
Nov. 5 filed
•
99,500
stock
339,600 shares of common stock (no par)
be offered for subscription by stockholders of record
to
Fire &
Casualty Co. (12/20)
of capital stock (par $5).
— To
increase capital
and surplus.
Office—Portland, Me.
Underwriter—Mc¬
Laughlin, Cryan & Co., New York.
Nov.
Nov. 6
Life Insurance Co. of South Carolina
Oct.
Price—To be
supplied by amendment. Proceeds—To redeem $6,976,000
3*&% sinking fund bonds, of The Sydney County Council
due Jan. 1, 1957, the holders of which may exchange
N. Y.
★ Mairco,
(12/12)
Nov. 21 filed 130,000 shares of capital stock (par $1).
3Price—To be supplied by amendment. Proceeds—To sell¬
ing stockholders. Underwriters — Lee Higginson Corp.
and P. W. Brooks & Co. Inc., both of New York.
Corp., Cleveland,
Kromex
B33
Street, New
William
15
Wales, Australia
(Electricity Commission of)
Oct. 26 filed $7,500,000 sinking fund bonds.
both of New York.
Co. Inc.,
•
Montague, Inc.,
Thursday, December 6, 1956
.
.
New South
Business — Manufac¬
specialty products.
Under¬
aluminum
and
>
$1,000,000 of 6% convertible debentures
Price—To be supplied by amendment. Pro¬
filed
21
•due
,
...
Corp., Cleveland,
Kromex
Kov.
—For general corporate purposes.
from page 47
.
★ New England Electric System
Dec. 3 filed 819,000 shares of common
to
be
Gas
&
offered
in
Electric
exchange
Co.
on
the
for
capital
basis
of
stock
stock
two
NEES
for each Lynn share.
Dealer-Managers—Paine,
Jackson & Curtis and F.
S.
Moseley
Boston, Mass.
&
(par $1)
of Lynn
Co.,
shares
Webber,
both
of
Pyramid Development Corp., Washington, D. C.
July 27 (letter of notification) 300,000 shares of common
stock
(par 10 cents), of which 25,000 shares are to bereserved for issuance upon exercise of
options. Price—
$1 per share. Proceeds—To purchase real property and
mortgage notes. Underwriter—Coombs & Co. of Wash¬
ington, D. C.
-
Volume 184
Number 5592
.
.
Pyramid Productions, Inc., New York
Sept. 27 filed 220,000 shares of common stock (par $1),
of which 200,000 shares are to be ofi'ere.d to public and
20,000 shares issued to underwriter. Price—$5 per share.
Inc.;
for
and
vision releases.
York.
:
capital.
L.
&
•
Rose
common
•
and
for
inventories, finance
Business—Manufacture
poses.
and
sale
of
swim
Office—Los Angeles, Calif. Underwriter—Van
Noel & Co., New York. /
V
St.
be
(par $10) of J. Neils Lumber Go^ at rate of 2% St. Regis
ex¬
•/>/'■
'• •'v;/-
Uranium,- Inc., Denver. Colo.
(letter of notification) 25,000,000 shares of capi¬
tal stock.
Price—At par
(10 cents per share). Proceeds
drilling, including geological research and
core assays; for
mining shaft; to exercise purchase of
option agreement on additional properties; tor working
capital and other corporate purposes. Underwriter —
Indiana State Securities Corp. of Indianapolis, Ind., for
—For
core
offering to residents of Indiana.
Sierra
Pacific Power Co.
Oct. 11 filed
1986.
1,
Proceeds—To
repay
bank
be
loans
and
determined
for
by
new
com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Salomon Bros. & Kutzler; Stone & Webster Secu¬
rities
Corp. and Dean Witter & Co. (jointly); Blair & Co.,
Bids—Rescheduled
Incorporated.
11
Mass.
bid
a
to be received up to
11 at 49 Federal Street, Boston,
Halsey, Stuart & Co. Inc., on Nov. 14, submitted
of 100.02% for 5%s, the only one received.
It
a.m.
was
(EST)
on
Dec.
rejected.-
;_.,//;
Southern General
/y
.
—
lanta, Ga.
Offering—Date indefinite.
Southern New England
Telephone Co.
Sept. 19 filed 679,012 shares of capital stock (par $25)
to be offered for subscription by stockholders of record
1, 1956 at the rate of one new share for each eight
shares held; right to expire on Nov. 2. Price—$30 per
share. Proceeds—To pay advances from American Tele¬
phone & Telegraph Co. (approximately $15,800,003) and
property additions and improvements. Underwriter
Offering—Delayed indefinitely by company on
for
(See also next paragraph.)
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
outstanding stock of Southern New England Telephone
Co. Proceeds—To American Telephone & Telegraph Co.
Underwriter—To be determined by
competitive bidding.
White, Weld & Co.;
Putnam & Co.; Chas. W. Scranton & Co., and Cooley &
Co. (jointly); The First Boston Corp.; Salomon Bros. &
Probable bidders: Blyth & Co., Inc.;
Hutzler.
Bids—Had been expected to
11
(EDT)
on
Oct.
10.
be received up to
(See also preceding
para¬
graph.)
■
-
Southern
Union Oils Ltd.. Toronto, Canada
Southwest
Grease Jk Oil Co.
'
—None.
purchase of new equipment and working capital. Office
St., Wichita 2, Kan. Underwriters—
-r-220 W. Waterman
Small-Milburn
Inc., Brooks & Co. and
Herrick & dinger, Inc., all of Wichita, Kan.
Co.,
Lathrop,
Fe, N. M.
June 8 filed 1,000,000 shares of comnlon stock (par 25
cents). Price—$5 per share. Proceeds—To exercise op¬
tions, purchase additional properties and for general
corporate purposes.
Underwriter—Southwestern Secu¬
rities Co., Dallas, Texas.
Southwestern Resources, Inc., Santa
Southwide
Corp., Anniston, Ala.
(par $1),
of which 211,681 shares are to be offered publicly 238,954
shares are to be offered in exchange for the class A
stock of Capital Fire & Casualty Co. and common stock
Sept. 12 filed 450,635 shares of common stock
Allied
lumbia Securities Co., Inc., of
Inc.
-
share. Proceeds—
Calif. Underwriter
American
change
the
Investment
share. Pro¬
ceeds—For purchase of stock of Capital and Allied firms
and for purchase of U. S. Government bonds. Under¬
Corp.
-"Venture
Price—$2
per
Florida, Miami, Fla.
Securities Fund,
Inc., Boston, Mass.
Sept. 4 filed 200,000 shares of capital stock (par $1).
Price—Initially at $25 per share. Proceeds—For invest¬
ment.
Underwriter—Venture Securities Corp., 26 Fed¬
eral
St., Boston, Mass.
•//••'" W/.; •/Z-■/-r ir Western Natural Gas Co.
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
Stock
Exchange
private sale.
by
or
selling stockholder.
Texas
the
or
Toronto
Proceeds—To
Stock
A.
P.
Ex¬
Scott,
Eastern Transmission
(letter
notification)
of
10,000
shares
of
5%
convertible
preferred stock to be offered to employees
and officers who are not directors. Price—At par ($3(>
share).
per
Office
1006
—
Main
St., Houston, Texaa
Underwriter—None.
Western States Natural Gas Co.
(12/12)
Corp.
29
Nov.
Underwriter—None.
Aug. 24 (letter of notification) 500,000 shares of commcm
stock (par 10 cents).
—For development
$28,000,000 of revolving credit notes and for
company's gas expansion and reconversion programs.
Underwriter—Dillon, Read & Co. Inc., New York.
Salt Lake
prepay
★ Texas Fuel Corp., CEarksville, Texas
Nov. 29 (letter of notification) 120,000 shares of com¬
mon stock
(par $1). Price—$2.50 per share. Proceeds—
To pay bank loans, financing of time
payment sales
of
appliances and air conditioners and for workingcapital.
Underwriter—Franklin Securities Co., Dallas,
Texas. •
"'//', ./ :
Interests
Plan, Inc., New York City
shares of class A stock (par five)
cents) and 28,000 shares of class B stock (par five cents).
Price—Of class A. expected at $10 per share jn lots of;
Oct.
filed
30
52,000
not less than 25
shares; of class B, expected at par.
investment
ceeds—For
theatrical
in
Business—A non-diversified
/fields.
ment investment company.
and
Pro¬
entertainment
closed-end manage-*
Thermoray Corp.
29 (letter of notification) 380,000 shares of com- ^
mon stock
(par 10 cents). Price — 75 cents per shares
Proceeds—For inventory, working capital, etc. Business
—Electrical heating. Office—26 Avenue B, Newark, N. J. /
Underwriter—Eaton & Co., Inc., New York.
Title
Nov.
Guarantee
filed
21
&
Trust Co.,
(par $8)
of
which
35,750 shares are to be offered for subscription
by stockholders on the basis of one new share for each
eight shares held; and the remaining 26,152 shares are
offered, together with cash, in exchange for stock
& Title Insurance Corporation of Buffalo,
to
be
Wheiand Co., Chattanooga, Tenn.
May 23 filed $2,000,000 of convertible subordinated de¬
bentures due June 1, 1976, and 136,000 shares of common,
the company's account and 61,000 shares for a selling
stockholder.
Price — To be supplied by amendment.
Proceeds—Together with proceeds from private sale ©i'
$1,500,000 4%% first mortgage bonds and $900,000 a!/
3-year unsecured 4V2% notes to a group of banks, wiD
be used to retire outstanding series A and series B 5%
first mortgage bonds, and for expansion program. Undetwriters—Hemphill, Noyes & Co., New York; Courts fe
Co., Atlanta, Ga.; and Equitable Securities Corp.^ Nasi -'
ville, Tenn.
Offering — Temporarily postponed. )
-
4/10ths of
basis of $15.25 in
share of Title Guarantee stock
a
Title
to
if
tive
latter
Abstract
stockholders
Guarantee
eifec-
becomes
acquires at least 85%
The purchase offer will expire
of
company
stock.
in
The subscription
exchange for each share of Abstract.
offer
on
the
Jan.
10, 1957, unless extended to Feb. 28, 1957. Price—To be
supplied by amendment. Proceeds—To acquire Abstract
stock.
Underwriter—None.
Trans-Canada
Nov. :26
filed
debentures
Pipe Lines,
subordinated cumulative1976, and 6,000 shares of common
(no par) to be offered in units of a $400 deben- ;
ture and three shares of stock.
Price — $500 per unit
Proceeds—For construction and working capital. Busi¬
ness—Mountain recreation center.
Underwriter—None;
offering to be made by officers and agents of company.
* William
and
1986
4,000,000
of
subordinated
shares
of
common
(par $1-Canadian) to be offered in units of $100
of debentures and five shares of stock.
Price—$150 per
Proceeds—For
unit.
In
United
States:
Young,
Nanton,
McCloud,
mend
&
&
construction.
Lehman
Securities Corp. and
Thomson
new
Brothers,
Underwriters—
Stone
&
^ Tri-State
& Co., Ltd.; and Osier, Ham-,
Offering—Expected in the last
Rock Material Corp.,
Leesburg,
Va.
500,000 shares of 6% cumulative convertible
preferred stock. Price—At par ($1.50 per share). Pro¬
ceeds
For asphalt plant, equipment, working capital
—
and other corporate purposes.
Underwriter—None.
Tyrex Drug & Chemical Corp.
Nov. 5 (letter of notification) 150,000 shares of class A
(par one cent). Price—$2 per share.
Proceeds—
equipment, raw materials, working capital and other
stock
For
corporate purposes.
Office—42 Newark St.,
N. J.
Underwriter—Dennis Securities Corp.,
N.
Hoboken,
Hoboken,
States
Air
due
of
Price—To
1976.
Proceeds
ment.
first
Inc.
$20,000,000
20-year sinking fund de¬
be supplied by amend¬
presently outstanding;;
mortgage bonds, to repay bank loans and tor e>~
28 filed
bentures
—
To
redeem
pansion program. Business—Meat packing firm. Un¬
derwriters—Smith, Barney & Co.; Glore Forgan & Cot
and Hallgarten & Co., all of New York City. Offering—Indefinitely postponed.
ic Wood (Alan) Steel Co., Conshohocken, Pa.
(letter of notification) an undetermined number
of shares of common stock (par $10) to be offered to the
employees under the Supervisory Employees' Stock Pur¬
chase Plan for 1957. Price—Not to exceed a total aggre¬
gate of $^00,000.
Conditioning Corp.
stock (par 10
offered to em¬
ployees, * distributors and dealers; 50,000 shares, plus
any of the unsold portion of the first 50,000 shares, are
filed 600,000 shares of common
cents), of which 50,000 shares are to be
Proceeds—For working capital. Under¬
writer—None.
*
Prospective Offerings f
Appalachian Electric Power Co.
May 31 it was announced company plans to issue and
sell in December $24,000,000 of first mortgage bond.1.
Underwriter—To be determined by competitive bidding;.
Probable bidders: Halsey, Stuart & Co. Inc.; Union Secu¬
rities Corp. and Kuhn, Loeb & Co. (jointly); The Fint
Boston Corp.; Harriman Ripley & Co., Inc.
/
Associated Truck Lines,
Oct. 11 it
was
Inc.
announced corporation plans to issue and
sell $1,000,000 of 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
selling stockholders). Proceeds—From sale of deben¬
of
tures,
J.
United
Sept. 27
Aug.
Webster
half of January.
Nov. 28 filed
Finance
of
Wilson & Co.,
White, Weld & Co. In Canada: NesLtd.;* Wood/Gundy & Co. Ltd.;/
Weir
(letter
Underwriter—None.
Pa.
Co.
Ltd.
Penn
Corp.
notification) $250,000 of 6% sub¬
ordinated renewable debentures due Dec. 20, 1963. Price
—At face amount.
Proceeds—To repay outstanding in¬
debtedness
to
Factors
Corp. of America and other
indebtedness.
Office—2829 N. Broad St., Philadelphia/
30
Nov. 26
Ltd.
(Canadian)
$80,000,000
due
Boston, Mass.
stock
Abstract
cash and
Wildcat Mountain Corp.,
Aug. 13 filed $800,000 of 6%
Nov.
New York
61,902 shares of capital stock
Price—50 cents per share. Proceeds
of oil and gas. Office—Felt Bldg„
City, Utah. Underwriter—Us-Can Securities
Inc., Jersey City, N. J.
debentures due Dec. 1,
Underwriter—None.
June
bitt
'
Sept. 27 (letter of notification) 40,000 shares of common
stock. Price—At par ($7.50 per share). Proceeds—For
of
of Arlington, Va. Malcolm W. Ater, of Falls?
Church, Va., is President, and Robert G. Baumann, a£
Ritchie, Md., is Treasurer.
\
V >
company,
stock
Aug. 24 filed 750,000 shares of capital stock (par $1).
Price—64^ cents per share. Proceeds—To selling stock¬
holders.
Underwriter—None.
•
per
Office—Los Angeles,
Rochester and Lockport, N. Y„ on the
Southern New England Telephone Co.
a.m.
Price—Initially at $7.14
of
—None.
4.
Treasurer.
•
Mutual Fund of California,
For investment.
Oct.
Oct.
and
8
Theatrical
Insurance
Co., Atlanta, Ga. V
Sept. 24 filed 95,714 shares of common stock (par $5), of
which 50,000 shares are to be offered publicly; 20,714
shares are to be offered in exchange for 10,357 shares of
$10 par common stock of Progressive Fire Insurance Co.;
and 25,000 shares are to be offered to certain other per¬
sons.
Price—To public, $14.50 per share; and to certain
persons, $13 per share.
Proceeds—To pay bank loan.
Underwriter
The Robinson-Humphrey Co., Inc., At¬
f
President
filed $40,000,000 of debentures due Dec. 1, 1976.
Price—To
be
supplied by amendment. Proceeds—To
(12/11)
Underwriter—To
is
27.
Nov. 21
$3,000,000 of first mortgage bonds due Nov.
construction.
Teachers
families.
V
■'Samson
Aug. 21
Nov.
;
filed 700,000 shares of capital stock (par $1) to
be offered only to members and employees of fche Cali¬
fornia Teachers Association (Southern section) and their
Dec. 31, 1956, unless extended. Exchange Agent
—The First National Bank of Portland, P. O. Box 3457,
: /
Cassill
C.
effective
Washington, D. C.
shares of class A voting stock and
1,587,500 shares of class B non-voting stock.
Price—
Six cents per share.
Proceeds — For drilling program,
and for plant and equipment for rendering ore market¬
able.
Underwriter —; William O'Connor, Secretary odf
Universal Lithium Corp.,
Nov. 15 filed 1,320,000
* Sunrise Fund, Inc., New York, N. Y. ;/
3 filed 500,000 shares of capital stock.
Price—$5 s
Venezuela Diamond Mines, Inc., Miami,
Fla.
/share. Proceeds—For investment. Business—Pres¬
Aug. 31 filed 1,500,000 shares of common stock. Price—
ently. is a closed-end investment company but will be-/ At
par (20 cents per share). Proceeds—For exploration
come arj open-end
company" in March, 1957.
and mining operations in Venezuela. Underwriter—Co¬
Nov.
on
.V/--
New York.;
per
shares for each Neils common share.. The offer will
■
_
..
Dec,
Alstyne,
filed'750,000' shares of common stock (par $5) to,
in exchange for outstanding common stock
Portland, Ore.
Ernest
Statement
offered
pire
\
Sun
None.
Regis Paper
Oct. 26
-
capital. Underwriter — Lehman Brothers,
Offering—Expected today (Dec. 6).
pur¬
suits.
/'
/
S.
U.
Industries, Inc.
r'
Nov.
14 filed $6,000,000 convertible subordinated de¬
bentures due Dec. 1, 1971.
Price—To be supplied by
amendment.
Proceeds — For expansion and working
Oct.. 15 filed
expan¬
working capital and other corporate
•
800
Marie
share. Proceeds—To increase
B.
indefinite.
per
Castle, Inc., Pompano Beach, Fla.
1,598 shares of common stock (par $5) and
registered 6% mortgage bonds due March 15, 1972/
(of $1,000 principal amount each). Price—At par. Preceeds—To construct and operate a resort motel and club
upon property in Broward County, Fla.
Underwriter—
Underwriter—Hopp & Co., Pas¬
^"''v v;■;
Reid, Inc. (12/17-21)
Nov. 26 filed 250,000 shares of common stock (par
$1),
of which 80,000 shares are for account of
company and
170,000 shares for selling stockholders. Price — $9 per
sion
shares of 5% convertible preferred
Price — To be supplied by amendment
share). Pro¬
ceeds—For construction costs. Office—Montreal, Canada.
Underwriters—Hamlin & Lunt, Buffalo, N. Y.; Allen &
Co. and Cowen & Co., both of New York, N. Y.; and
Straus, Blosser & McDowell/ Chicago, 111.
Offering—
Temporarily postponed.
(par 10 cents).
Price—$2 per share. Proceeds—
To purchase plant and equipment.
Office—2505 Butler
Place, New York City.
saic, N. J.
\...
poses.
29 filed 400,000
(par $5).
(proposed maximum offering price is $6
stock
capital and general corporate pur-;
Office—Philadelphia, Pa. Underwriter—Mortimer
Burnside & Co., Inc., New York. .Offering—Date
ceeds—For. working
Spar-Mica Corp., Ltd.
stock
Co., New
150,000 shares of
commission will be allowed
by them. Elvin C. McCary,
Anniston, Ala., is President.
Oct.
Co., Inc.
(letter of notification)
granted options to acquire the remaining 500,000 share??
for reoffer to the public. Price—At market prices. Pro-,
a selling
dealers for sales effected
of
Business—Tele¬
Aaron
to be offered to the
to
'
•
Redi-Food
Oct. 8
working
Underwriter—E.
public; and the underwriter will be
writer—None, but
Proceeds—To retire $125,000 of outstanding 15% deben¬
tures as well as a $173,180 debt to Trans-Union Produc¬
tions,
4$
(2429)
The Commercial and Financial Chronicle
.
for expansion and working
motor common carrier
short
haul
miles
or
routes
in
capital.
Business—A
operating over 3,309
Illinois, Indiana, Michigan and Ohio.
Office—Grand Rapids,
Mich.
Underwriter—Paine, WebContinued
on
page
50
50
(2430)
The Commercial and Financial Chronicle
Continued
from
page
49
Eversweet, Inc.
;
ber, Jackson & Curtis, Boston, Mass., and New York,
N.
Y.
Offering—Indefinitely
postponed.
.
Probably
Atlantic
Bids
Line
RR.
not
on Dec. 18 for
equipment trust cer-.
General
tificates, series K, to be due annually from Jan. 1, 1958
to Jan. 1, 1972, inclusive. Probable bidders:
Halsey, Stu¬
Baltimore
&
be
Ohio-RR.
received
by
at
company
Wall
2
St.,
due
in
15
,
if Bay I ess
(A. J.)
■
/
/
Markets, Inc., Phoenix, Ariz.
reported company plans to issue and sell
was
750,000 shares of common stock. Underwriter
H. M.
Byllesby & Co., Inc., Chicag.o 111. Registration—Planned
in January.
Offering—Expected in-mid-February.
•—
Nov.
12
Co.
(Texas
reported that early registration is ex¬
pected of approximately 200,000 shares of common stock.
of
this
was
company, formerly
be about $5 per
Upham Gas Co. Price—Ex-share. Proceeds—To selling
Underwriters—Shields & Co. and Shear-;-
pected to
stockholders.
son, Hammill &
bonds
as
held.
the next 16 months.
Lynch, Pierce,
clearing agent in previous of-*
Salombn
,
Bros. &
Mountain
•
.
.
Co*, both of New York.
(1/10)
v
Bids-are expected to be-received by the
company on Jan.
10 for. the purchase from it of $4,875,000
equipment trust
certifiedtes. Probable-bidders:-Halsey, Stuart & Co.
Merrill
Inc.;-
Hutzler.:"/;
States
^
:;/•
*
•
(1/29 )"•
i".
proposed $36,700,000 California<-to-Hawaii
cable and, if
approved by the directors on Aug. 16, will
be probably be financed
by a debenture issue.* Hawaiian
Telephone Co.'s investment will be
sell
~
Co.
T'-;*
proposal to issue and'$35,000,000-debentures.- Proceeds— To repay bank!,
loans #ztnd
»
& Telegraph
V///"y" / "•
Nov.'20 the directers. approved
a
/
/v
Telephone
,
July 30 it was announced that company plans to
acquire
15% participation with American
Telephone & Tele-;
a.
graph Co. in
|h
if Missouri Pacific RR.
for
construction
a
Underwriter—Tor
program.
dfet^rmined by competitive bidding. / Probable bid-'
approximately $5,-;. dersr Halsey, Stuart & Co. Inc.; The First Boston Corp.;-/
500,000. Underwriter—Probably
Kidder, Peabody & Co.,4 Morgan Stanley & Co.; Drexel & Co. and Dean Witter
New York.
;
/
/&
Conjointly).
Bids—Expected to be received4 On
Jan. 29/High Authority of the European Coal and Steel
// - ■..y
*
; tv
be.
■
*-■
River Gas
it
shares
Hawaiian Telephone Co.
/
-
15
fering to stockholders.
equal annual instalments to and including Jan. 1, 1972.-/
Probable bidders: Halsey, Stuart & Co.
Inc.; Salomon"
Bros. & Hutzler.
each
bidders:
& Co. ^jointly); The First Boston Corp. Bids—Not expecteU-to be received until December or early in 1957,
Company presently plans to issue and sell $22,000,000 of
Utilities Corp.
Fenner & Beane acted
York 5, N. Y., up to noon (EST) on Dec. 10 forthe purchase from it of $1,380,000
equipment trust cer¬
tificates, series HH, dated Jan. 1, 1957 and
for
Edison Co.
reported that company is considering the
was
Halsey* Stuart & Co. Inc.; White, Weld &
Co.: Blyth & Co., Inc.; Kidder, Peabody & Co. and Drexel
orange-
15, A. F. Tegen, President, announced that the
are
going to be offered approximately
647,000 additional shares of common stock
(par $5) dur¬
ing the first quarter of 1957 on the basis of one new
share
Thursday, December G, 1950
.
of^$10,000,000 first mortgage bonds due 1986. Underwriter^To be determined by competitive bidding. Prob¬
able
Nov.
(12/10)
the
Public
.
sale
stockholders
New
Brazos
July % it
Co., Chicago,-
art & Co., Inc.; Salomon Bros. & Hutzler.
Nov. 27 it
Metropolitan
0
reported that this company (a consolida¬
Corp. and John H. King & Co.) plans
registration of 100,000 shares of common stock.
was
early
Price—$5 per share. Business—Producers of fresh
juice. Underwriter—Burton J. Vincent &
(12/18)
the purchase from it of $5,340,000
Bids will
it
be received by the company
to
are
Coast
15
tion of Vita-Fresh
until January.
%
/
■
Oct.
.
Community,
Luxembourg
/
-"•••
.
National
Bank of Commerce,
Memphis, Tenn. V
July 9 this Authority announced that an American bank¬
^1/9)/
:V/;/ '-}4
ing group consisting of Kuhn, Loeb &
Co., The First .• Nov/13 it was announced stockholders will vote Jan. 8/
Boston Corp. and Lazard Freres & Co.has been ap¬ on
approving-a proposal :f© offer 25,000 additional shares;
pointed to study the possibility of a loan to be issued of capital stock on the basis of one share'for'each' fiveon the American
market.
The time, amount and terms
shares jield.
Price—$40 per share. Underwriter—Left-^
will depend on market
conditions.
Proceeds
To be
wicEfY&'Ross, Memphis, Tenn.
"
loaned to firms in the
Community for expansion of coal
'■■■
-/>
mines, coking
plants, power plants and iron ore mines..
: New. England Electric System
^
i
.
.
—
Carolina Power & Light Co.
'
■■
■'
Oct. 15 it
reported company plans to issue and sell
$15,000,000 and $20,000,000 of first mortgageUnderwriter—To be determined by competitive
was
between
bonds.
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc. (jointly);
W. C. Langley & Co. and The First Boston
Corp. (joint¬
ly); Equitable Securities Corp.; Blyth & Co., Inc.; Kid¬
der, Peabody & Co. and Merrill Lynch, Pierce, Fenner
& Beane
Offering—Probably early in January.
if Idaho Power Co.
Dec. 3
Nov.
16 it was reported
company has applied to the
North Carolina P. U. Commission, for
authority to ofter
to its common stockholders an additional
the basis of
on
eeeds—To
bank
one
Price—At par
new
($100
loans and
R. S. Dickson & Co.
•
for
58,310 shares
sjiare for each
i
per
new
are
22
expected
for
the
to
be
from
reported company plans to issue
by the
it
company
and
&
Ce.
Jan. 7,
ent
on
of
Bids—Tentatively
1957.
Power
time
-some
feasible, and
porary
to be
&
in
Light
pres¬
to
,
it
was
announced
company
to its stockholders
will probably ■ offer
early in 1957 some additional common
stock, to finance part of its construction program. Under¬
writer—None.
r
•
.
approximately $55,000,000 of convertible debentures
early in 1957, probably the
latter part of
February. They will be offered to common
Feb. 5 to approve
on
an
gram.
Stockholders will be asked
authorized issue of
$125,000,000
Proceeds—For construction
pro¬
Underwriter—May be
bidding.
Morgan,
determined by competitive
Halsey, Stuart & Co. Inc.;
Stanley &.Co.; The First Boston Corp.
Probable
Consolidated
Nov. 21
it
bidders:
Freightways,
Inc.
was
announced company has
applied to the
Interstate Commerce Commission 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.).
* Continental Copper &
Nov. 28 it
was
Steel
^Industries,
Inc.
announced company
plans to offer to its
stockholders the right to subscribe for some
additional common stock on a l-for-10
common
hasis.
For
construction
program.
New York.
Proceed*—
Underwritre—Allen
&
Co.,
Douglas Aircraft Co.
Nov. 19, Donald W.
Douglas, President, announced that
the company plans to issue and
sell $25,000,000 convert¬
ible subordinated debentures.
Proceeds—For
expansion
of facilities in order to
place the DC-8 jet airliner into
production.
Underwriters—Merrill Lynch, Pierce, Fen¬
Kuhn, Loeb & Co., both of New York.
Offering—Not expected until after Jan.
ner
& Beane and
1, 1957.
new
?
'
5,
of $9,300,000
equipment
trust certificates, series
43, to be dated Jan. 1, 1957 and
purchase
from
it
to mature in 30 equal semi-annual
instalments. Probable
bidders:
Halsey,
Stuart
&
Co.
Inc.;
Salomon
Bros.
-
.
,
Bids
/
&
St.
Louis,
Mo.
Jersey Central Power
Sept. 12, it
sell
To
was
$8,000,000
be
announced
of
first
determined
by
&
Offices
Co.
—
Chicago
mortgage
and
be. received by
^certificates.
(1/10)
this
■'
company
on)
$1,400,000 equipment
,
Probable bidders: Halsey, Stuart
Inc.; Salomon Bros. & Hutzler.'
Jersey Power & Light Co.
was
$5,000,000
man
Brothers and Salomon Bros. & Hutzler
(jointly);
Eastman Dillon, Union Securities & Co. and
White, Weld
&
-Underwriter—
bidding.
to
announced company plans to issue and
of first mortgage bonds. Underwriter—
To
be
determined" by
competitive bidding./Probable,
bidders: Halsey, Stuart & Co.; Kuhn, Loeb & Co., Leh¬
«sell
plans to issue and
bonds.
competitive
expected
Sept. .12 it
Light Co.
company
fare
Jan. 10 for the. purchase from it of
trust
Underwriter
Co.,
-
if Ndw Jersey, Indiana & Illinois RR.
New
Bloomington, 111.
(1/8) ^
plans to issue "
bidders:/,.
Halsey, Stuart & Cou Inc.; The First Boston Corp.; Mor-r
gan Stanley & Co. Bids
Expected to be received onU
,:Jan. 8, 1957.>
r
«.:■
-
Sept. 26 it was reported company plans to issue
and sell
75,000 additional shares of common stock.
&
announced that the company
and sell $35,000,000/of 29-/year debentures* -Proceeds^,To r#pay temporary borrowings. Underwriter — To be:
deterthined by competitive bidding. Probable
Interstate Fire &
Casualty Co.
—White
was
i
'////,/
Bids will be received
by the company up to noon (CST)
on Dec.
11, at Room 301, 135 East 11th St., Chicago
England Telephone & Telegraph Co.
-Oct. 16 it
Lehman. Brothers,
Goldman, Sachs & Co: and The First
Corp., who underwrote last equity financing.*/
(12/11)
Cq£ (jointly); Equitable Securities Corp.; The First
Boston
Corp.;
Merrill Lynch, Pieree, Fenner &
Beane.
Probable
bidders:
Halsey, Stuart & Co. Inc.; Kidder, Peabody &
New Orleans Public Service, Inc.
'
Co.; The First Boston Corp.; White, Weld &
Co.; East¬
Nov/13, Edgar H. Dixon, President, announced that thi9
man
Dillon, Union Securities & Co., Salomon Bros. & ■i
company plans to issue and sell $6,000,000 of first mort¬
Hutzler and Merrill
Lynch, Pierce* ^Fanner & Beane gage bonds/Proceeds=^-For construction
pfrogram. Under(jointly). . _*c. / writer-—To be determined
by competitive bidding. Prob»able bidders: Halsey, Stuart & Co.
if Kaiser Industries, Inc.
Inc.; White, Weld &
t•
Co.;/Blair & Co. Incorporated; The First Boston Corp.;
Nov. 28, E. E.
Trefethen, Jr., Executive. Vice-President, "
Equrtablb Securities Corp. and Eastman Dillon, Union
stated that it is
anticipated that a
^
portion of the funds
meetTthe $25,000,000 installment due April
1, 1957 on its 4%% term loan may have to be
provided
by the ereation of debt by, or the sale of
equity securi¬
ties, of this corporation or Henry, J. Kaiser
Co., or
through the public or private saie*'bF a portion of the
Securities & Co.
necessary to
securities
of
Brothers.
New
the
companies owned-;by the Henry - J.
Co., or of certain other assets. Underwriter—The
First Boston
Corp., New York.
was
der &
surplus.
Co., New York.
Underwriter--A. M. Kid-
Central
RR.
(12/6)
Stuart & Co. Inc.; Salomon Bros. & Hutzler.
;
are
increase capital and
York
and
Lehman
cated dated Jan. 1, 195? and to mature annually from
Jan.. Iv 1958 to 1972, inclusive. Probable bidders: Halsey,'
announced
stockholders of record Nov.
16,
being offered the right to subscribe/x>n or .be¬
fore Dec. 14,
1956, for 14,000 additional shares of capital
stock (par $10) on the basis of one
new share/for eacheight shares held. Price—$32 per share. Proceeds—To
(jointly);
Offering—Expected in March, 1957.
Bids will be received by the company on Dec. 6 for the
purchase from it of $8,055,000 equipment trust certifi¬
Long Island Trust Co., Garden City, N. Y.
1956,
(jointly); Kuhn, Loeb & Co. and A. C.
Allyn & Co. Inc. (jointly); Kidder, Peabody & Co.
Stone/'& Webster'Securities Corp.
Kaiser
Nov. 28 it
'
.
New
Proceeds—To repay bank
construction. Underwriter—May be
Illinois Central RR.
now plans to issue
mortgage bonds early in
be determined by competi-f
company
first
of
secu¬
Boston
stockholders for subscription.
convertible debentures.
for
Hutzler.
Consolidated Edison Co. of New
York, Inc.
Nov. 20, Charles B.
Delafield, Vice-President, announced *
company is planning an issue of
;
approximately $14,000,000.
and
announced
was
$10,000,000
—
To
.bidding.
Probable bidders: / Halsey, Stuart & Co./
Inc.^Kuhn, Loeb & Co., Salomon Bros. & Hutzler, East-v
man-billon, Union Securities & Co. and Wood, Struthers/
& Gpi (jointly); Lehman Brothers; The First Boston^
CoFpii/Equitable Securities Corp.; Merrill Lynch. Pierce,
Fenper & Beane, Kidder, Peabody & Co. and White,.;
WeldJ& Co. (jointly).
*./
-
1960, amounting
111., for the
Connecticut Light & Power Co.
Nov. 27
-
issue of $8,000,000 in ,bonds in 1958.
Ternloans are available*" and
probably will be
bank
sell
1957^ Underwriters
an
loans
Proceeds—To repay bank loans and for construetion program. Underwriter—To be
determined by com-*petjtive bidding.
Probable bidders:/ Halsey, Stuart & *
Co. Inc.; The First Boston
Corp.; Blyth & Co., Inc.; Dil- '
Ion, Read & Co. Inc.; Blair & Co. Inc.,
apd Baxter, WiU'
liams & Co.
(jointly); Glore, Forgan & Co.; White,'.
Weld & Co.
i:
and
issue of $6,000,000 of preferred ;
if market conditions make it
1957.
/
was reported company plans to issue
and sell
$25,000,000 of first mortgage bonds in the Summer of
England Power Co.
live
utilized, during at least part of 1957. Additional
rities will need to be sold in 1959 and
*
k; New
Co.
President, announced that
an
1957
& Co. and Wood, Struthers & Co.
(jointly);/
Brothers; The First Boston Corp.; Equitable;'
Securities Corp.; Merrill Lynch, Pierce, Fenner &
Beane,.- ^
Kidder, Peabody & Co. and White, Weld & Co. (jointly).:
Offering-r-r-Expected in first half of 1957./ /
/
Jan.|3 it
received
Registration—Planned for Dec. 7, 1956.
plans contemplate
stock
expected
Nov. 12 it
Illuminating Co.
Securities
Lehman
'
First Boston Corp.
(jointly); Kidder, Peabody &
Co.; Salomon Bros. & Hutzler; Lehman
Brothers, A. C.
Allyn & Co. and Wood, Struthers & Co..
(jointly); Kuhn,
★ Indianapolis
approximately;
$4,000,000 equipment trust certificates. Probable bidders;
Halsey, Stuart & Co. Inc.; Salomon Bros.-& Hutzler.
Cleveland Electric
sell
Proceeds—To
rities Corp.; Blyth &
Co., Inc., Lazard Freres & Co. and
Loeb
-
aame pf which has not as yet been determined.
Under-^
writer"— May be determined by competitive
bidding..
Probable bidders: Halsey,, Stuart & Co. Inc.: Kuhn. Loeb"& C^f^Salomon-Bros, &, Hutzler, Eastman
Dillon, UnioiP
The
Nov. 21, H. T. Prichard,
received
purchase
"
loans and for construction
program. Under¬
writer—To be determined
by competitive bidding. Prob-/
able bidders:
Halsev, Stuart & Co. Inc.: Equitable Secu¬
on
,
(1/22)
Jan.
,
/
(1/7)
$20,000,000 first mortgage bonds due 1987.
Cincinnati, New Orleans, Texas & Pacific Ry.
Bids
was
•
repay bank
share). Pro-T
construction.'
Underwriter—None. Southern Bell Telephone & Tele¬
graph Co. in February, 1956, sold its rights to 14,464
shares (of a 66,640 share
offering to stockholders) to
reduce
it
-
was announced company plans to mergCi
subsidiaries, Essex County Electric Co.^ Lowell Elec-»,
Light Corp.,! Lawrence Electric Co., Haverhill Electricj
Jo. and Ames bury Electric Light Co., into one
company :
Ilirihgf:I956. This would be followed by a $20,000,000j
JirsLJooortgage bopd issue by the resultant company, the-
its
trie
of
$30,000,000 long-term debentures.;,Under—
writers—Lee Higginson Corp. and
White, Weld & Co.,.
both of New
York; and William Blair & Co., Chicago, 111.'
(jointly). Offering—Expected in 1957.
of common stock
issue
1
Jan.^3, :1956, it
.*
"
Dec. 3 it was reported
company may register this month
an
Carolina Telephone & Telegraph Co.
four shares held.
★ Household Finance Corp.-
if New York, Chicago & St. Louis RR.
Bids -are
expected
Probable
bidders:
to
be
received
by
the
company in
January • or February for the purchase from it of ap-:
proximately
$6,400,000
equipment: trust
certificates.-!
.
"
Brod/& Hutzler.
Halsey, Stuart & Co. Inc.; Salomon*
4
Volume
184
Number 5592
.
.
The Commercial and Financial Chronicle
.
(2431)
New York State Electric & Gas
Corp. Oct. 24 it was announced
company plans to sell in the
Spring of 1957, $25,000,000 of debt securities v and an
additional
$20,000,000 in
construction
1958r- Proceeds
To
—
Underwriter^-To- be
program.
by competitive bidding.
Pan Cuba
Oil & Metals
Corp.
(Del.)
Socony Mobil Oil Co.
April 9,
Walter E.vSeibert, President, announced that
company will soon file a registration statement with the
finance
SEC preparatory to an
equity offering planned to
piace later this year.
Business—To
determined
Probable bidders:
Halsey, Stu¬
art & Co.
Inc.; Kuhn, Loeb & Co.; Blyth & Co. Inc. and
Smith, Barney & Co. (jointlyX; The First Boston
Corp.
and Glere,Forgan & Co. (jointly) ;-Harriman Ripley &
Co. Inc.;
Kidder, Peabody & Co. and Salomon Bros. <&
operate
oil,
and
gas
:
Pennsylvania
Nov.
27 it was announced the
to offer additional capital
the basis of not more than
take
on
explore, drill and
properties in the United
Office—120 Broadway, New
plans early in
company
1957
stock to its stockholders
one
share
new
for
each
10 shares held
(at Sept. 30, 1956 there were outstanding
43,727,585 shares). The financing may also include an
offering of debentures not exceeding $100,000,000. Pro¬
mineral
States, Cuba and Canada.
York, N. Y.
51
ceeds—For
Electric
Co.
exploration and development costs and Tor
plant expansion. Underwriter—Morgan Stanley & Co., "
,
New York.
Hutzler
Sepl i2 it was announced company plans to issue and
(jointly).
:
M
v.*
r
If a^afa Mohawk Power Corp.- sell^$6,000,000 of first moftgage bonds: Underwriter—
To be/deterhrined
by competitive bidding:
Probable
Dec. 4, the directors authorized
the-issuance and sale to
bidders: Halsey, Stuart & Co. Inc.; Merrill
Lynch/Pierce,
common stockholders of
$46,224,200 convertible-deben-: tenner.& Beenex Eastman Dillon, Union Securities &
tures due Feb.
1, 1972 on the basis of $100 of debentures - Co.
and-White; Weld-& Co.; (jointly)* Equitable Securi—
-for each 25 shares of stock
held.-Price—At IO0%"of prin- "
ties -Corp.;; The First Boston Corp.; Harriman -Ripley &
cipal amount.,: Proceeds
For construction program. VCo:
Inc.; Kuhn, Loeb\:& Co. *
'
t
-V:;
Underwriter—May be determined by competitive bid-v>.
oustfj^
*'
ding. Probable bidders: Halsey, Stuart «St Co;
Inc./ The^Woteum Co, j
u
..
.
First Boston
Corp.; Morgan Stanley & Co.; Kuhn Loeb *
24 it was indicated that the company next year
& Co.
and
Eastman Dillon,/Union Securities'Co.v? wlH Siveconsideration^ refunding its
$75,000,000 of
(jointly). Bids-—Expected in January.
' "
'
^ - short-term hank loans.-After review,, the company will
*
^
>
,
m
.
.
B
:
-
Southern
Jan. 30 it
Counties
was
Gas
Co.
of
California
reported company may in the Fall offer
$15,000,000 of first mortgage bonds. Underwriter—To
be
determined
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The First
Boston Corp.; White, Weld &
Co.; Merrill Lynch, Pierce,
—
Fenner & Beane.
■
»i
m"
Bids
are
■m,
•
Norfolk
-
&
WesternRy.
/
(1/16).
-
-
-
declde the-most appropriate type of long-term borrowing> whether' it be- insurance loans, long-term bank
.
.
_
expected to b% received by the company on or^: borrowing, convertible
debentures or straight debenabout Jan. 16 for the purchase from it of
approximately .v tures. Underwriter^-The First Boston Corp.,. New York.
$4,650,000 equipment trust certificates. Probable bid¬
; v
Pittsburgh ftys.- Corders: Halsey, Stuart & Co'.
Inc.; Salomon Bros. & Hutzler.
May 4 it was announced that Standard Gas & Electric
^ Northern
Natural Gas Co.
;
Co. will offer to its stockholders
rights to subscribe for
;
Southern Electric Generating Co. May 18, it was announced that this company, 50% owned
by Alabama Power Co. and 50% by Georgia Power Co.,
subsidiaries of Southern Co.,^ plans to issue debt securi¬
ties. Proceeds—Together with other
funds, to construct
and operate a
$150,000,000 steam electric generating plant
"
19 it
1956
construction
through
reported';
was -
issuance
of
latter part of year.
Inc;
•
Northern
Bids
are
Dec. 19,
plans
(costing
debentures
and
finance
to
about
':l
expected
treasury
funds
be
(12/19)---received
Probable
■
Oct. 8 it
"of
acoiu
Houston,
certificate
a
of
necessity to
gas pipeline off-shore the
build
364-mile submarine
Louisiana from the Sabine
coast
of
ing system
will cost approximately
$130,000,000J,*r~Type
financing has not yet &een> determined, but tentative
plans call for private sale of first
mortgage bonds and
public offer of about $40,000,000 of securities
(probably
notes, convertible into preferred stock at
maturity-; and
stock)/. Underwriter—-Salomon Bros.
New York.
Oklahoma
•
•
& Hutzler.
Nov. 14 stockholders approved
tional shared; of new -capital
basis of ,one new
July 26.it was announced company has been authorized
by the Oklahoma Securities Commission to issue and
sell
in
the
State of
sidiaries.v Business—A
-»-None.
holding
or
acquire
i
St.
seven" sub-
„
-
★ Oklahoma Gas & Electric Co. (l/29>
27, it was reported :company plans to issue and
sell $20,000,000 first
mortgage bonds: Proceeds—To repay
loans
and
for
construction
program.
Blyth & Co., Inc. (jointly); The First Boston
Corp.; Merrill Lynch, Pierce, Fenner &. Beane
and White,'•Weld &
iCflJ rioinflvV!* Harriman Rinltfv Jtr Pn
Wuhn'
\Coi (jointly);;Harriman Ripley & Co. ln«
Inc.; Kuhn^Loeb
?
&
Co.
Bids
—
Tentatively expected
Jan. 29.
v;
-
.,
4
!
.'
,
be received
to
,
~
f
~
through the sale of bonds;
-vestors as well
as
the general
$^17,400,000.
Pacific
-
;Nw. 19 it
'.
" ~
.
and
>
d
in
by comf>etitive bidding; |?robStuart: &> Co. -Inc.; Lehmam|Bro-
*
V
-
"Vxi
was reported
company plans to offer pul^licly
-issue of 90,000 shares of cumulative
preferred
;Stock
(par $100).- Proceeds—For construction program.-Underwriter
May be determined by competitive bidding.
"-Probable bidders: Lehman
Brothers; Blyth & Co^jlnc.;
Eastman Dillon, Union Securities & Co.
,
—
received
on
Jan. 7.
Bids—Exp|cted
Palisades Amusement Park, Fort
Lee,
-Aug.
21,
^
N./jJ
Irving Rosenthal, President,. announced/* that
^company plans to purchase another amusement
pgrl^ and
^inerge the two and then sell stock to public.
eight
the
to
be
received
purchase
from
•
construction.-
by
it
the
company on
about $5,600,000
of
Probable
bidders:'
Halsey,
Hutzlepr1.
(1/22)
Underwriter—To
Southwestern
it
7
Public
Service
announced
was
-
/
*
be
.
*
determined
&
Beane.
„
Co.
company
shares of common-stock
on
For construction program.
United States
Nov.
of
shares
not
than
more
held "(there
are
one
Underwriter
program.
Dec.
a
l-for-14
basis. Proceeds—
Underwriter—Dillon, Read &
"
5'
in
bentures.
4
>
Underwriters—Goldman, Sachs
Co.; Halsey, Stuart & Co. Inc.; and Lehman Brothers;
Chicago. Offering—Scheduled for
January, 1957, ■
all of New York and
to
t
Security National Bank of Huntington, N. Y.
rNov.,21
was
announced
stockholders
offering to stockholders of
an
of stock
25
it-
(par $5)
shares
expire
held
on
as
the basis of
of
record
Slick
one new
share for each
Nov.-20,
Dec. 14. Price—$30
capital and surplus.
on
increase
19,784
approved*5
additional shares
per
1956; rights will
share. - Proceeds—To
1
"
9 '
Nov. 15 stockholders approved an increase in the author¬
* "
ized
common
stock
from
1,000,000 no par shares to
2,000,000 $5 par shares. It was stated that the company
may issue and sell a convertible debenture issue or some
For
stock
purchase
in
order
of
new
to
raise $5,000,000.
aircraft
and
Proceeds—
working capital.
per
Diego, Calif.
to
of
offer
capital
share
new
for
to
its
stock
each
2%
1956; rights will expire on
share. ^-Proceeds—To pur-
7,
1956.
a
-
proposal of the bank* to offer to its
on
the basis of
and
one
15, 1957 the right
shares of common
new
share for each
Price—To be named later. Proceeds^To
increase capital and surplus.
of local
Jan.
for. 105,000 additional
(par $5)
Underwriters-rA'syndicate
national investment
houses whose identity
will be made public at a future <date.. William R. Staats
& Co. and
in
•
Blyth & Co., Inc. underwrote rights offering
July, 1954.
•*
Wabash
Bids
Jan.
9
RR.
(1/9)
expected
are
for
the
;
to
be
received
purchase
from
by the company on
it of approximately
equipment trust certificates.
Probable bid¬
Halsey, Stuart & Co. Inc.; Salompn Bros. & Hutzler.
$2,000,000
ders:
v
Washington G*s Light Co.
7
it
was
announced company proposes to finance
construction of pipeline in Virginia to
$3,380,000 from funds generated by operations,
sale of common stock and temporary bank borrowings.
Underwriter — The First Boston Corp., New York; and
Johnston, Lemon & Co., Washington, D. C.
proposed
Airwavs : Inc.
one
15,
plans
shares
stockholders of record
subscribe
June
.
Nov.
Price—$27.50
12 .shares held.
•
/
have
basis of
of
approving
on
stock
.
,
'
additional
Pasadena,'effective Dec.
common
Proceeds — To purchase customer instalment
*;
receivable from parent.
the
as
Bank
★ Valley National Bank, Phoenix, Ariz. (1/15) '■
Nov, 27 it was announced stockholders will vote Jan. 15,
Morgan
&
75,000
on
held
20.-
National Bank of San
announced
.
chase.Pasadena-First National Bank and its two branches
■
Acceptance Corp.
was
(par $10)
shares
new
1,411,578
—
it
9
stockholders
stock
modernization
common
•
v
(1/8)
plans to issue and
February or March, 1957v $5,000,000 of first mort¬
gage bonds and to-offer -to stockholders 292,000 additional
r
Dec. 1, Theodore V. Houser, Chairman, announced that
this company, a subsidiary of* Sears, Roebuck &
Co./
plans early registration of $50,000,000 of long-term de-
.
•
Nov. 21 it*
to be
Ry.
expected
for
new
4 957
•
(1/7)
of
Halsey,
sell in
a
.•
Light Co.
each
Sears Roebuck
•
an
r
3/
^
thers, Bear, Stearns & Co. and Salomon Bros. &;
hutz¬
ler (jointly);*Blyth &
Co., Inc. and White, WeiCo.
(jointly)t Eastman, Dillon, Union Securities & ChlBids
—Expected to be received on Jan. 7.
Pacific Power &
8
Aug.
-
outstanding),-and a debenture
offering of about $9,000,000." Proceeds — For expansion
$20,000,000 of first mortgage bonds'due 1987^ Proceeds—
To. repav. bank loans and- •ftfimew
UJbn'structibri/^llilBder-^.
writer—To be determined
.
on
Loeb & Co.; Merrill Lynch,
Pierce, Fenner
Bids—Expected to be received on Jan. 22.
^probably about 176,000 shares)
basis
a
shares of common
Light Co, (1/7)
;'
21-ft'was reported company prlans to issue
ati4 sell'
ab^e bidders? Halsey,
for
on
Stanley & Co.; New York.
Petroleums, Ltd.
'
stock
common
stockholders
share
project to cost !a4; lesti-.V~.'
Pacific Power &
Nov.
to
p»v»:.
reported company plans to offer 4' "
000 to $13,000,000 of debentures.^ Underwriter—
Dillon, Union Securities & Co. i Offering. — Expi
-
company
$9,600,000
Co., New York.
Manufacturing^ Co.
additional
was
January.
the
about
by competitive bidding. Probable bidders: Halsey, Stuart
Co. Inc.; Equitable
Securities-Corp.;-Salomon Bros. &
Hutzler; Blyth & Co., Inc.; Lehman Brothers; Kuhn,
Nov. 29, it w^s announced directors have
approved plans
to raise $15,000,000 ;in
January; through the sale of some
instrtutiojiual in-
public, " Proceeds—1
in parL^for
qost. of,new -power,
'.mated
to
are
for
_
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
★ ScovHI
rV
Aug. 13 it was reported company plaiis to selh about
$32,000,000 of common stock to the organizing
companies and
that arrangefhentsr are expected to be made
to crorrow
Up?to $60,000,000 on a revolving bank loan which will be
>reduced
by
of
-
v
-
"
Pacific Northwest Power Co.
purchase from" it
plans to issue and sell
$10,000,000-of first mortgage bonds due 1987. Proceeds
•*-To repay approximately $6,000,000 of-bank loans* and
—The Chase Manhattan
Bank, New York.
on
received
*
(1/3)
be
Southwestern Gas & Electric Co.
Nov. 21 it was reported company
ferred stock,' series
A, on the basis of $100 of deben¬
tures, one-qdarter. share of common stock and unpaid
dividends of $2.50'per preferred share in
exchange~f or
each 5%
preferred share: The oJiei will expire on Dec. 31,
1956r unless extended." Dealer-Manager — Eastman Dillon, Union Securities & Co., New York. Exchange Agent
Probable
bidders: Halsey, StUart & Co.
Inc:; Lehman Brothers and
.
/
■*•
Stuart & Co. Inc.; Salomon Bros. &
};*
.AA
22.
Co.
to
equipment trust certificates.
_
.ni.A(,
the
Southern
Jan.
stock
Ry.
for
Bids
dend
Underwriter
-^To be determined by competitive bidding.
•
equivalent to, the unpaid.'portion of the preferred divi¬
which has been declared
payable in 1956, in ex¬
change for its 616,000 shares of $100 par value 5% pre¬
■Nov.
bank
.
*
Jan.
on
Probable bidders:
Stuart & Co. Inc.; Salomon Bros. & Hutzler.
an
Sept. 5
(1/22)
equipment trust certificates.
of Tacoma
##
Underwriter
company.
Louis-San Franci$cQ
3
Pacific
expected
are
Jan.
■.
-
$20-,000,000 of its "Capital
organization and $10,000,000,
($10,000,000 within
publicly). Proceeds—To organize
Bids
,
Oklahoma
stock
★ Southern
Underwriter—
offering of 25,000 addi¬
(par $10) !on the
share,_for, each tthree shares Jheld;
rights to expire on Dec/-14. Price
$30 per -share,
Proceeds—To; increase capital and surplus.
Corp., Oklahoma City, Okla^//^*/
an
pected to be received
&
Puget Sound National Bank
:
Co.
Bros. & Hutzler (jointly); Blair & Co.
Incorporated;
Kidder, Peabody & Co.; Eastman, Dillon, Union Securi¬
ties & Co.; The First Boston
Corp.; White, Weld & Co.
and
Shields
&
Co.
(jointly).
Bids—Tentatively ex-
Ripley & Co. Inc.; Glore,
Co.; Kuhn, Loeb & Co.,' Salomon Bros. &
Hutzler and Eastman
Dillon, Union Securities & Co.
-(jointly).. Offering postponed.
>
/
Forgan
Electric
mon
To be determined by competitive
bidding. Probable bid¬
ders: Halsey,.'Stuart & Co. Inc.;
Blyth & Co., Inc.; The
First Boston Corp.; Harriman
;
of
-"Commen
bank loans and for construction
program.
v
River to the Gulf Coast of
It is estimated that this gather¬
the; State of Mississippi.
&
Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Equitable Securities Corp.; Kuhn, Loeb & Co. and Salo¬
Public Service Co. of Indiana, Inc.
July 30 it was reported company may issue and sell about
$30,000,000 first mortgage bonds. Proceeds — To retire
s
Gas
filed with the Indiana P. S. Com¬
application for authority to issue and sell
gram.
Expected to be received early in 1957.
.
Indiana
16 the company
$5,000,000 30-year first mortgage bonds due 1987. Pro¬
ceeds—To repay bank loans and for construction
pro-
.
Texas^
18, 1955/ David C. Blntliff, Pres., announced com¬
pany has filed an application with the Federal Powei
for
Underwriter—To
White, Weld & Go. (jointly); The First Boston Corp.;
Blyth & Co./Inc. and Smith, Barney & Co.
(jointly);
Lehman Brothers; Harriman
Ripley & Co. Inc. Bids—
Halsey,
Southern
mission
bidding. Probable bidders:
Not.
-Commission
•
Nov.
reported company plans the issue and sale
$30,000,000 first mortgage bonds. Proceeds—To repay
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co. and
jj
$7,7j0,COO
bidders:
and
Kidder,
Stanley & Co.
was
bank loans and for new construction.
be determined by
competitive
on
Goldman, Sachs & Co. (jointly); Blyth & Co.,
Peabody & Co. (jointly); Morgan
Inc.
./
Public Service Co. of Colorado
& Co.,
company
Stuart & Co. Inc.; Salomon Bros. &
Hutzler.
'•/ Offshore Gathering Corp.,
in
share. -v'L.--v
per
-
by this
1956, for the purchase from it of-
equipment trust certificates.
4.
"'"'r
"/
to
540,651,75 shares of Pittsburgh Rys. Co. Price—About $6
Its
$40,000,000)
Underwriter—Probably Blyth
Pacific Ry.
Inc. and
•
company
program
River in Alabama.
Underwriter—May be
competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Eastman, Dillon, Union Secu¬
rities & Co.; Equitable Securities
Corp. and Drexel & Co.
(jointly); Lehman Brothers; Harriman Ripley & Co.
■
July
the Coosa
on
determined by
new
cost about
<
Western
Nov. 13 it
Pennsylvania
National
Bank
Underwriters—Auchincloss, Redpath & Parker and Allen
Co., both of New York, handled stock rights offering
reported Bank plans to offer to its stock¬
holders 132,812 additional shares of capital stock on a
l-for-3 basis.
Price—$30 per share.
Proceeds—To in¬
early this
crease
&
year.
„
was
capital and surplus. .Office—McKeesport, Pa.
The Commercial and Financial Chronicle
(2432)
The
Indications of Current
Business Activity
week
Latest
AMERICAN
IKON
STEEL
AND
steel operations
Indicated
Equivalent to—
Steel ingots and castings
oil
Crude
42
gallons
9
S100.5
•101.I
.Dec.
9
§2.473,000
•2,489.000
output—daily average
(bbls.
_______
•7,164,750
6,998,200
7,965,000
7,670,000
26,483,000
25,931,000
26,201.000
2.855,000
2,619,000
2,680,000
12,163,000
7,891,000
12,389,000
11,844,000
7,742.000
8,600,000
172,739.000
171,985,000
155,866.000
8,458,000
CIVIL
;
,
36,305,000
35,978,000
34,518,000
U.
S.-
Public
157,268,000
(bbls.) at___—____—Nov. 23
45,745,000
46,768,000
47,493,000
45,045,000
Nov. 24
650,920
763.876
816,803
of cars)—Nov. 24
622,326
651,865
667,997
—Nov. 29
$377,118,000
$357,600,000
$350,139,000
-Nov. 29
189.585,000
249,851,000
165,918,000
187,533,000
107,749,000
184.221,000
105,547,000
-Nov. 29
171,104,000
90,228,000
166,045.000
91,080.000
Nov. 29
16,429,000
17,521,000
18,176,000
14,467,000
—
(no.
ASSOCIATION
output
107,100
4.355,800
4,171,900
24.900
:
104,534
93,493
INC.—Month
159,000
of
grades
all
of
(tons
V 90,235
89,441
106,848
92,377
87,748
88,810
102,165
43,868
53,425
64,450
61,746
3
__________
:—
(tons)
end
at
of
period
BANK
....
v..~——
—■
„r~—
8.
BUREAU
and
STORE
OF
MINES):
V
,
(tons)___l_
9,140,000
10.420,000
10,440,000
96
93
108
728
737
876
OF
$167,154,000
$183,819,000
$168,967,000
OF
GOVERNORS
RESERVE SYSTEM—Month
FEDERAL
•
thousands)
(in
FAILURES—DUN
INC.—Month
service
in
order (end of month)
on
&
'
.
BRADBTREET,
of-October:
Manufacturing number
447,000
640,000
642,000
482,000
Nov. 24
148
•151
128
Retail
9,063,000
Nov. 24
INDEX—FEDERAL
installed
units
September
BUSINESS
RAILROADS—
October:
units
DEBTS—BOARD
of
-
.
—_
number
J—
140
198
130
85
85
584
489
437
182
146
136
112
;
1
Nov. 24
(tons)
SALES
of
Wholesale
(tons)-——_i._.
lignite
AMERICAN
OF
locomotive
New
THE
_____
anthracite
DEPARTMENT
17.080
(M therms)—
of period
orders
Locomotive
ENGINEERING
_
Pennsylvania
4,339,257
173,248,000
„.;_.„__-_^._„„.i-„-Nov. 29
Unfilled
$278,795,000
connections
CONSTRUCTION
municipal—.:
coal
4.460,871
19,100
_____
therms)-
(M
INSTITUTE,
pounds)
2,000
Month
cars!
construction
Bituminous
sales
.639,665
received from
(U.
4,547,800
4,421,600
:—
therms).
(M
gas
smelter
zinc
Stocks at end
671.950
of
Federal
COAL OUTPUT
Ago
October:
RAILROADS:
(number
construction.
and
Year
Month
of
145,374.000
construction
State
sales
Slab
NEWS-RECORD:
Private
therms)
AMERICAN ZINC
34.315,000
160.460,000
ENGINEERING
Total
(M
gas
Shipments (tons of 2,000 pounds)__
158,871.000
freight loaded
freight
.
174,544.000
Nov. 23
ASSOCIATION OF AMERICAN
Revenue
gas
Mixed gas sales
6,858,800
_____Nov. 23
at
Distillate fuel oil (bbls.) at
fuel oil
Total
2,396.000
12,761,000
(bbls.)-,—
_x.r—_
___—Nov. 23
refineries, bulk terminals, in transit, in pipe lines—
and unfinished gasoline (bbls.) at.:
___Nov. 23
(bbls.)
month
7,741,000
26,816,000
Finished
Revenue
2,416,000
7,195,350
Residual fuel oil output
Residual
2,463,000
f!8,lll,000
___
.
Kerosene
ASSOCIATION—For
Manufactured
—
Stocks at
AMERICAN GAS
of
to
runs
100.1
Previous
Month
Ago
100.1
of that date:
are as
Latest
Natural
——.—
each)
—Nov. 23
stills—daily average, (bbls.)—____—_Nov, 23
Gasoline output (bbls.)___
Nov. 23
Kerosene output
(bbls.
Nov. 23
Distillate fuel oil output (bbls.)
..Nov. 23
Crude
of quotations,
cases
either for the
are
September:
(net tons)
condensate
and
Ago
Dec.
;
that date, or, in
on
production and other figures for tht
coyer
Year
INSTITUTE:
PETROLEUM
AMERICAN
Week
Month
Thursday, December 6, 1956
Dates shown in first column
month available.
or
month ended
or
Previous
Week
INSTITUTE:
(percent of capacity)
following statistical tabulations
latest week
ft
.
number
Construction
number
Commercial
RESERVE
1*^.
service
number
72
82
81
'
SYSTEM—1947-49 AVERAGE
==s
100
.
EDISON
ELECTRIC
Electric
output
FAILURES
•
(in 000
146
AND
jDec.
INDUSTRIAL)
12,075,000
1
11,439,000
11,487,000
11,359,000
.
Retail
INC.—.-;——-
254
Nov. 29
207
!:*,''
271
209
Finished
steel
Pig iron
(per gross ton)
(per lb.)_
:
5.622c
'> 5.622c
METAL
Nov. 27
$63.04
$59.09
$61.33
$57.50
(E.
&
J.
M.
Electrolytic copper—
'
V
•,
Domestic
refinery at
refinery at—
Lead (New York) afr.i—
Lead
(St.
Zinc
Louis)
•'
•
__________
35.700c
35.700c
36.000c
43.225c
Nov. 28
34.325c
33.925c.
33.100c
44.100c
_.ll— Nov,
—
16.000c
28
16.000c
15.800c
13.500c
13.500c
Nov. 28
14.000c
*-
16.000c
15.800c
Nov. 28
14.000c
—.„-j._i___Nov. 28' '
at
15.500(
15.800c--'
Aluminum
U. S.
(primarv pig. 99% ) at
„_Nov. 28
(New York) a——Nov. 28
tin
BOND PRICES
DAILY
Average
..
corporate
—_L
1
_,
.Dec,
—
_Dec.
Dec,
^
______
13.000c
'
14.000c
25.000c
110.750c
89.78
4—,
;
2—
2—
1
Railroad
90.42
'■•'
<
95.09
MOODY'S
U.
S.
^_x—■_
Public
100.32
109.42
97.16
91.34
4
93.16
Dec.
4
97.47
4
97.62
__Dec.
4
Dec.
4
98.25
..
91.62
:___Dec.
BOND
_________
YIELD
Government
DAILY
AVERAGES:
Average corporate
1
——
—
—_
x-,..
_
:—L—
—
Railroad
Public
95.16
96.63
105.86
98.03
98.41
107.62
97.73
99.68
3.34
3.37
3.29
2.87
3.96
3.94
3.86
3.31
3.73
received
Production
3.65
DRUG
DEALERS
Number
by
SPECIALISTS
4.06
4.06
3.96
3.40
3.87
3.85
ON
N.
Y.
3.90
3.77
3.23
4
437.5
437.3
421.3
231,330
240,275
260,253
278,966
278,432
279,120
24
89
94
373,310
97
428,989
542.3J7
109.62
109.60
109.49
107.17
1,490,392
1,333,750
973.024
1,022,356
$77,141,062
$70,848,894
$59,589,680
$58,694,698
___2222nov.
~~
10
Nov.
10
10
7,683
5,575
6,038
905,213
899,422
683,9)1
802,556
10
$44,633,922
$45,119,535
$34,093,982
:
912,896
904,997
__Nov.
10
Nov.
2___222_222_Nov.
__2
10
__Nov.
690,02.9
807,386
173,390
216,350
157,590
'
SALES
ON
THE
Y.
N.
~
FOR
purchases
ACCOUNT
AND
OF
216,356
173,390
'756,430
10
157~,590
'
_x
——
the
on
"'
floor—
640,970
479,170
[
;
initiated
off
603,170
8,916,480
10,505,330
7,453,500
9,519,650
11,036,650-
7,826,820
531,320
373.320
Meats
All
exceeds
% 1.043,320
1,131,390
M01„16Q
'297,610
1.414,970
'2
" 82.5,600
1,526.520
1,712,580
'v
"4,013,580
10 '
NoY.'lO
78,900
87,200
94.400
26.200
32,300
13,200
lm200
13,600
195,900
'191.000
210,300
242,500
225,000
231,200
APPLIANCE
Gas
conve-sion
Domestic
gas
water
Gas
METAL
heater
OUTPUT
of
Month
(in
Silver
Lead
fine
pound.
MINES)—
the
178,070
*182.457
192.134
3,113,078
'3,295.701
2,982,802
86,195
*92,078
90.42
27,318
ounces>_
(in
short
•30,613
26,876
$2,784,232
*$2,315,501
$2,783,843
:
*
tons)_
YORK
EXCHANGE—As
STOCK
i
of
Oct.-
omitted):
(000's
firms
carrying
Total customers'
Credit
Cash
margin
accounts—
debit balances
net
extended
hand
on
of
to
customers
in banks
and
free
customers'
value
of
value
listed
-
U. S.
on
other collateral.
1,138,070
210.014,923
100.587,883
,
754,059
7?
REAfc:
ESTATE
OF
'.
Z~,
FINANCING,
U.
S.
'*
IN
r' 2,228,618
126,519
HOME
—
10
396,435
84,620
v,ov"
87,480
83,770
88,800
10
544,221
570,979
453,442
628,841
658,459
537,212
579,263
10
1,986,945
2,413,195
1,627,892
1,859,350
Savings and
and
Mutual
_Nov
458,885
members—
1,936,111
2,465,261
U.
29,300
BOARD—Month
237,600
15.700
S.
DEPT.
529,150
364,152
504,040
430,590
286,450
2,385,309
1,527,982
1,688,763
2,815,899
.
1,814,432
2,013,843
325,080
OF
.
loan
2222222222222! Nov!
~
r
Nov
and
115.7
115.0
111.1
27
88.5
87.6
88.2
83.9
27
103.2
103.1
103.1
98.2
27
79.7
79.2
82.2
72.9
Nov. 27
foods__.
124.2
124.0
123.0
119.2
trust
of
foreign
Zinc
sold
crude
on,
runs.
tons.
JBased
tNumber
delivered
basis
on
of
at
new
annual
orders
centers
not
capacity
reported
where
of
since
freight-from
128,363,000
tons
introduction
East
St.
of
Lou-is
(000's
>
omitted):
;
Si t
$779,455
"
-
i
ITEMS
(Interstate
of
Month
railway
CLASS
I
income
291,549
1455,621
$2,544,317
$2,521,593
'
$103,590,532
deductions
fixed
for
fixed
from
.'
v
$61,432,984
$10.9.611,044
-20,134,749
129,745.793
4,239,805
2,591,599
73.064.C14
90,948,940
charges
charges
20,222,629
81.655.613
121,638,444
income
47.601,173
4.308,095
125.437,698
94.720,957
4.139.163
90.581,794
44,603,715
48,527.319
4,242,500
.
income
4,259,936
86,706,440
Depreciation (way & structure &
income
equipment)
taxes
43.341,233
46,877,304
46,011,359
40,928,945
10,021,155
27,513,948
14,945.503
appropriations:
common
stock
On. preferred
of
2
12M78,249
deductions
Dividend
~
'^*123jS87.717
income
after
Ratio
319,126
-452,092
Commerce Commission)—
available
C)i
S.
income
Income
Net
U.
168,473
Aug)«.st:
operating
Income
Other
OF
155,324504,788
387,503
$2,184,801
INCOME
$945,833
275,209
...
Total
SELECTED
RYS.
-507,563,,
181,326,
162,571
,
Individuals
Net
163 466
440,618
income
stock
to
fixed
__x
charges
-
4,298,168.
3.96
854.125
2.56
'I
_
$920,744-
139,445
—;
x
companies
savings banks
Federal
barrels
Western
Sept.
Miscellaneoss lending institutions
Other
115.9
of
associations
/
2,326,237
'
490.463
10
220,420
-
'
-
x
■'
NON-FARM
LOAN BANK';,
1
106,109,809
84.431
^■2,245,293
L
'
192,781,695*
.
931.030
/A
920,29*
^
<jo'Hrlssues__
on
borrowings
•866.356
-
bonds..
borrowings
39,775
357,459
834,044
332,779
.
balances
Member
33,478
100,290,606
S;______
*327,842
211,627,311
credit
U.
shares.
listed
of
36,014
in
Meihljer
4,|17,710
206,^80
2-136,980
Bank
^8ainst Jan. 1, 1955 basis of 125,828,319
a
OF
(in short tons).
296,510
10
929,000
(units)
fine ounces)_
(in
Total
IPrimc
43,000
United States:
267,210
—.2—ZIZZZZZIZZZZZZZ:::Nov!
Plan.
(unit.s)__
recoverable metals in
264,640
222
^Includes
(BUREAU
_____
September:
444,860-
ln
farm
shipments
309,900
_
than
(units >_
shipments
production ol
AREAS
10
—
(units)
shipments (units)
shipments
range
Miscellaneous
other
shipments
burner
boiler
Gas-fired
ASSOCI¬
October:
of
'
Nov"
SERIES
MANUFACTURERS
furnace
10
_I~~_Nov'
_Nov
NEW
.
•'
"
Nov. 27
cent
117
Insurance companies
for account of
foods
one-half
123
'
(1947-49—100):
^
129
adjusted——
118
"
.1,334,200
395.130
'
Nov
figure.
——
seasonally
248,940
.
t
*
Investmen
109
Stocks,
399,360
•__
_
Revised
°L,
Monthly
118
115
'131
Mjgmber
l0
-2—2222_2222222222222nov!
commodities
127
unadjusted
130
260,500
~~
products
Processed
FEDERAL
YORK—1947-49
of October:
144
10
commodities
Farm
NEW
11,421,406
11,112,983
122
443,030
Commodity GroupAll
49,733
120
10,217,350
;
PRICES,
133.834
120
ZZ-.ZIIZZZZZZZZIIZnov!
2122
sales
—
93,202
.2
112
9,774,320
10
the'floor
sales
LABOR
104.486
FED¬
*'
Nov
sales
WHOLESALE
;
daily), seasonally adjusted
Stocks, unadjusted
1,
45,500
_
Other
127,765
112,484
daily), unadjusted
353,150
_
Total round-lot transactions
total
.109.793
•96,026
v
136,373
113.353
-
(average
49,400
IIZIIZ"2
purchases
f
COMMERCE)—
DISTRICT,
OF
256,260
sales
Short
BANK
(average
Market
" IZIInov!
""
sales
Total
>
109, 960
(tons
SALES—SECOND
10
ZZZZ_ZZZZZZZ_ZZIZ
purchases
Short sales
Other
of period
OF
(average monthly),
419,490
10
1%:--.,.
1_ _C Nov. 10
•
■■
___x
—
sales
sales,
Total
STORE
Sales
Total
__
Total
*.
294, 380
*
•
bales)________x
Sales
199,230
10
u___Nov. 10
transactions initiated
Total purchases
transactions
(running
Sales
31
2
~Nov!
Z__Z_Z2-ZZI2ZZZ__Z2Nov.
Total gales
Total
(DEPT.
RESERVE
ERAL
SPECIALISTS:
___x—_^2_;
Other
Other
404, 340
;
129,253
106,120
:
!
Average=IOO—Month
MEM¬
f
Short sales
Other sales
sales
107,501
pounds—!___
stocks at end
14
DEPARTMENT
NEW
Nov.
__I_22Z2222222222222nov!
ZIZZZZIZZIZZZZZZZZnov.
___;
TRANSACTIONS
Other
-
-607,499
STOCK
i
sales
Short
2
October:
of 2,000 pounds)_____
pounds)-,
Nov.
Gold
Tra^ctions,, ol.specialists In stocks in which registered—
,. -
of
Member
—
EXCEPT ODD-LOT DEALERS
Total
As
199,230
sales—
sales
BERS
-
964, 787
336,752
117,670■1
,
of
month
2,000
(tons
GINNING
Copper
Shares
sales
ROUND-LOT
"
1,141,539 %•
in U. S. A.—
of
copper
COTTON
10
___
sales
other
$1,367, 127
$1,878,341 v
759,471641,891-
fabricators—
A.
2,000
Mine
purchases by dealers—
ROUND-LOT STOCK
Total
of
$42,246,724
;
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
ACCOUNT OF MEMBERS (SHARES):
-
*
4,830
10
sales
___,
round-lot
—
2,000 pound")-
ATION—Month
•
sales
Short
S.
Refined
of
(tons
to
Gas-fired
FOR
Total
$1,735,723.
976,252,
—:^.-
—
munlcipaLx___——
( tons
U.
In
GAS
STOCK
by dealers—
of shares—Total sales
of
95
401,797
sales
Number
TOTAL
24
Nov.
total
sales__x
Other
;
..'.-jc.V
—__
sales:.
other
Round-lot
^
of
—,—t—x—
Deliveries
227.809
Nov.
short
Customers'
Short
EN-1-
—
•
INSTITUTE—For
Crude
402,3
202,463
Dec.
Nov.
by dealers (tustomers' sales)—
Customers'
Number
*
> $80,000*
.
3.3C
3.89
—x___Nov. 10
orders—Customers'
Dollar value
Round-lot
3.59
—__Nov. 30
—
Odd-lot purchases
of
4.20
Nov. 24
—
,12,000
,v.
FOR ODD-LOT ACCOUNT OF ODD-
AND
Dollar value
Number
4.30
INDEX—
shares
of
4.32
SECURITIES EXCHANGE COMMISSION:
dealers (customers' purchases)—t
—
sales
4
3.91
_
PRICE
CONSTRUCTION
construction
S.
RESERVE
-
$44,700
•
:
....
3.31
4
2_22_I2nov!
.——Nov!
REPORTER
STOCK TRANSACTIONS
LOT
3.86
* f
_Nov. 24
AVERAGE:--- 199
EXCHANGE
3.93
4
;
period
*$49,509
■
omitted):
Copper production
ASSOCIATION:
of
•»
v2-;12,80O
•>> )$86,400 k/2 ^*$86,100
NEW8-RECOR.O— Month
(000's
and
COPPER
3.20
3.96
4
INDEX
(tons)
AND
3.13
3.73
4:*
Dec.
(tons)
Percentage of activity
Unfilled orders (tons) at end
OIL, PAINT
Dec.
$34,777,000
1
«
Federal'
108.88
___.Dec.
___
—
NATIONAL FAPERBOAUD
Odd-lot
Dec.
.—
Group..——
Group
MOODY'S COMMODITY
191!)
lx__x—,
_
Group
Utilities
Industrials
Orders
:
$50,004,000-: $39,313,000
COM¬
102.63
,
Baa
-
September.',,
of
construction
Refined
222221-122122221222222-Dec!
2,058,000
^ 23,400
construction
State
107.4*
.
93.08
3.82
A
3,620,000
,
8,713,000 73,655,000 ,1-.
*
—
Bonds____.
U.
Private
110.70
4
;
,_
Group
Total
107.44
99.20
■
OF
*
'
Dec.
—
Industrials
%
$50il00
ENGINEERING
98.25
—Dec.
Group _L—
Utilities Group——
Public
...
^840,000
(■—*—12,900^.
GINEERING
'101.64
3.72
.„
CIVIL
99.000c
100.32
'■
96.69
2.
Not Avail.
106.250c
97.00
100.4.)
4
98.88
Baa
'
V
DEPT.
—
—--L—x-i-x.;—x_—__i'i-—
Total
13.500c
25.000c
.
89.35
96.69
4;
2,416,000
i?-' 9,586,000
_—
.-Wholesale. ^
Retail
L,'JL
Retail
November
______
;
INVENTORIES
Manufacturing
AVERAGES:
Government Bonds___._„
Aaa
25.000c
110.000c
,
$10,407,000 s.
v
4,220,000
15,656,000
C
•
15.300c
13.500c.;
'
Straits
:
—
'/
919
11,145, OOO''
—x_x___
•--Mmillibns of dollars):
__Nov. 28
(delivered)
MOODY'S
liabilities
"
$9,539,000
^
5,517,000-
932
12.368,000 V
—
—-----»
MERCE NEW SERIES—Month
-"!'•»•
;
-
-_r
__L_—
at_^—-i-,
(East St. Louis)
JZinc
——
liabilities
Total
QUOTATIONS):
Export
$17,345,000
-ux-—
liabilities
3"
1,158
$47.00
BUSINESS
PRICES
1;
5.174e
$63.04
$64.33
Nov. 27
—
5.622c
$63.04)
Nov. 27
__l
__x
ton)
gross
liabilities
liabilities
Conimercial service
"
(per
■—'J.
liabilities
■Construction
IRON AGE COMPOSITE PRICES:
Scrap steel
number
Wholesale
&
DUN
—
*
"
Total
Manufacturers'
kwh.)___.
(COMMERCIAL
BRAD,STREET.
2
INSTITUTE:
29.344.107
4,537,038
4.08
>
Volume
?
5592
.
.
The Commercial and Financial Chronicle
.
(2433)
Hooker & Fay Adds. >
-
.
Number
184
(Special to The
SAN
gomery
Assets Gain
is now
Mont¬
members of the
&
Fay,
Street,
York
By
RICH
ROBERT R.
Francisco
San
and
David W. Barton
as
Fund Holders
chairman
*
*
Slated
Vote
to
" V
(Special to The Financial Chronicle)
trdStees.
Bruiidin is
*
with Sutro
now
of
the
Francisco
York
New
Shareholders
&
Stock
San
and
Exchanges.
received
holders
present
|
\ i..
through
A
u'
•*.
-
National Income Series
a
mutual fund, the primary
j
J
objec-
c.i'ive of which is to provide an ' L
inve8ttnent:in a diversified group
of bonds, preferred and common
|
I stocks, selected because of their
|
relatively hiizh current vield and
j
ment
of
special
to
founded in 1934 and
share¬
vote
on
from your
may ;-be
obtained
investment dealer or:
.
The
Income
fund
has
-liatifrnal Securities I
Research
tial growth of Income Foundation
past becomes economic consultant
to Federated Management Corpo¬
ration'. The investment policy will
Fund
is
assured 'as
substituted
the
in
that
is
fund
than
more
$20
million, of Federated Plans owned
Foundation
investors
who
make
regular
periodic investments under those ment;
programs.
Shareholders of Fed¬
erated Fund receive approximate¬ i
Leo
ly four shares of Income Founda¬
I
120 Broadway,
Income
E,
of
Foundation Fund will
;
H.
James
Federated
dent
of
•
becomes
Fund
state¬
ties
Research Corporation,
&
MacLaughlin Adds
has
—
*
affiliated
South
54
Company,
Avenue.
*
Los
Holders
tional
to
Continued
Established 1925'
&
now
Christensen,
-
Dean
U.
724* 17th
Inc.,
St.
Ira
•
•
for
^ GROWTH of
fnilaljnd Income.
wise,
substantial capital gains tax is being acquired. In our abovecase, to ;the noninvestment. transaction
cost
mentioned .assumed
be added
may
subsequently
with its
further offset in the form of the
a
accruing tax on the new stock's appreciation. Only death,
removal of the capital gains levy, can save him therefrom.
lncorporotcd
a
,» re-
30-day waiting period or
and
long transactions). '
we see that
a market loss must he sizable
advantageous tax-wise to switch.
|
The so-called "tax-free" dividend
on
is another frequent instance
pleasant delusion. It is true in many instances that dividends
sdme loss-carrying companies are exempt from cur¬
rent income taxation.
But the dividend must be subtracted from
each
available
from
fund
is
your
investment
the shareholder's cost basis,
gains
The Parker Corporation
200
.
/
correspondingly penalizing him capital
loss-wise at the eventual time of sale—again making
death the
~
-
possible rescuer.
,.
.
potentially abortive effect on year-end tax-saving
devices has just arisen through announcement by Congressional
tax leaders that proposals for closing "loop-holes" about to come
before the subcommittee on internal
revenue taxation
of the
House
Ways and Means Committee, may be
made retroactive to
Nov. 8 if adopted.
Practical Aspects of Gifts and
Another
of
area
inheritance
sublimation
of
Inheritance
,
weighed is that
Too often, because of
where the cold figures must be
pre-death gifts.
question of giving because
versus
the
of psychological
parent's; emotional insecurity in the surrender¬
ing of money "power," a substantial amount of tax dollars-andcents is sacrificed.
TV" > "
.V,
'
Under ~the-'gtatutes/the tax on gifts is generally 25% less than
foibles involving a
*
taxation; creating, in
effect, a 25% discount on ;gtffts. Additionally, the pre-death trans-.
fer via the gift yields a saving in current income taxation by usual
transfer of the donor's applicable tax levy to a lower bracket.
on
,
'
the equivalent amounts subject to estate
with
"The
year.
witnessed
the
months'
six
past
period
general decline
in the prices of bonds and pre¬
ferred.stocks caused primarily by
the change in money rates;, like¬
wise there has been
cline in
common
segments
field.;:/
: a '
:
stock prices," Mr.
reported.
of
In
fact,
stock
common
he
prices
total assets
Hungary."
during the
increased
31
year
ended
from
$1,265,124
"This growth," ac¬
well
as
value
the fund's
Added
to
the
the
during
tion,
from increased market
as
of
investments."
fund's
North
portfolio
Bendix
were:
year
American
broad
this ad for -free
policy of
this
"On
the
The
anced
CALVIN BULLOCK, LTD.
|
between
for
selected
Established 1894
'
Company
for
'l
;
.t
■
t
•
/
and
growth
and
a
Prospectus
Holdings
in
Con¬
Assurance, Imperial Oil,
Harvester, Niagara
Mohawk
and
United
Gas
portfolio
preferred
common
holdings
as
principal
of Oct.- 31
industry
were:
Oil,
19.0%; Chemical & Drug, 10.1%;
Metal,
7.4%;
Electronics,
6.4%
ahd
Eleptric Power, 6.3%,
—
Chicago
—
Atlanta
.
the
into
/'
:
section
entitled
United
Keystone's
Stock
Fund
Common
Growth
showed
S-3
a
20.7%
after
it is
Today,
nine
War
II, but only half its expected
10 years from now."
dimension
Puritan
assets
Fund
highs
new
reached
the
in
1955,
A
net
424,131.
The
Oct.
on
value
shares
of
number
adjustment
profit dis¬
share, for
for
31,
$18,-
was
Oct. 31, 1956, an
the
over
April
3,704,284.
there
were
30,
of
total of
1956
of. Oct.
As
as
increase of 18.8%
31,
1955,
shares
2,843,110
out¬
Net
$6.47
asset
value per
Oct.
on
31,
share
1956
was
compared
with $6.76 at the end of the fiscal
year
July 31,
1956.
the fiscal year ended Oct. 31. Over
the same period the Dow-Jones
1956
net asset
value per share is
Industrial Average
had
a
gain of
just less than 7%.
natural
Holdings
in
companies and
those
development of
new
processes
to
the
resource
after
a
The Oct. 31,
distribution from
realized
capital gains of eight cents a share
made
Sept. 4, 1956.
on
in
products and
engaged
Continued
on
page
contributed substantially
Keystone
is¬
sues
representing
15 industries,
with
38.6%t of the holdings in
steel, oil, metals and coal.
S-3.
perforipance
of
The portfolio includes 47
Over
the
year,
the
EATON & HOWARD
BALANCED FUND
number of
the highest
year-end figure in
the
history of this member of
Keystone's 10-fund organization,
aggregating more than $300,000,-
.
18 CENTS A SHARE
..
Dividend from Investment Income
42 CENTS A
SHARE
Distribution of Unitized I'rofits
EATON & HOWARD
STOCK FUND
17 CENTS A SHARE
With Wulff Hansen
Dividend from lnventment Income
(Special to The Financial Chronicle)
Russ
Building.
He
was
formerly
with Mitchum,
Jones
Co.*
Los Angeles
ago
year
asset
tribution of 80 cents per
FRANCISCO,
Calif. —
Reginald W. Hughes is now af¬
filiated
with
Wulff, Hansen &
request
——
States.
times its size at the end of World
standing.
.increase in per share asset value,
bal¬
Lord, Arbeit & Co.
New York
Address.
believing
growth of
outstanding totaled 4,405,807
fund's
The
stocks
stocks
'
Name
;
more
were
eliminated.
possibilities.
upon
,
-
are
continue
future."
another
invest¬
;
12A%.
Louisiana.
SAN
ONE WALL'STREET. NEW YORK b
'■
supervises
bonds
stability,
phenomenal
foreseeable
000.
Balanced Investment Fund
selected
for
ever
electronics will
In
there
score,
than
the
fund.
your
Seaboard Oil and Union Oil & Gas
Foods, Gerber Products, Kimberly
Clark, Winn-Dixie Stores, Kaiser
Aluminum, Newmont Mining,
was
,Business Shares
booklet-prospectus to
guiding
gauge
ment
quarter ended
Oct. 31, 1956.
On this date, net
assets of the fund totaled $28,508,553 compared with $25,379,277 as
of April 30, 1956, an increase of
record high of 6,735, and the
total net asset value of $17,909,814
American
A
;
Avia¬
Instruments, Florida
Food Fair, Ford, General
Texas
Power,
to a
common' stocks selected for investment
con¬
electronic
changes,". Mr. Tripp ex¬
plained, "were dictated by shortterm considerations, in the light of
temporarily adverse currents run¬
ning through the economy, but the
long-range viewpoint is still the
that
Stock Fund
the
of
com¬
"Some
reasons
and the turmoil in
Commonwealth
manufacturing,
instrumentation and
trols
general de¬
a
aircraft
puter,
a
..
J* tfoaKty and" income possibilities. Mail
com¬
principal portfolio changes during
the year "in part reveal. the in¬
creasing emphasis being placed in
36,357,963 shares at the end
of October last
•
is a mutual investment fund of diversified
year
"were
of
tronics and in the corollary field
of nucleonics." He added that the
shareholders in S-3 increased 34%
'■*
fiscal
list
ices within the broad field of elec¬
A further
Berkeley Street
Boston, Mass.
or
latest
1955^total of 98,942.
At the
time, the number of shares
outstanding climbed to 41,684,178
on
Oct. 31, last, from 39,633,792
shares on April 30, and compared
disbursed by
dealer.
the
the fund's assets
of
well-diversified
a
same
International
of
prospectus
in
31,
tinental
Half-Truth
The "Tax-Free" Dividend Only a
of
■;
87.4%
_
before it is
Thus
A
Na¬
increased
of
long position
(either after
through the device of simultaneous short
lighted in the case of the effective maintenance of a
in a single security after a capital loss is registered
Fund
whose
year
mon stocks of companies actively
engaged in research, development
and production of goods and serv¬
Aviation,
costly potential tax liability is high¬
Such reacquisition of a
fund
i
a
the
a
"Electronics
$2,594,015.
Today and Tomor¬
cording to President S. Waldo row," the report said: f"Today,
Coleman, in the fund's recently is¬ while just evolving from its em¬
sued annual report, "resulted from bryonic stage, electronics is an $11
new capital invested
in the fund billion giant. It is the fifth largest
;by both new and old shareholders, segment of the economy in the
from page 5 ;
•
from
114,856 at the close of October,
compared with the April 30,
figure of 107,182 and the Oct.
with Peters, Writer
■
f"nd
the
of
Series
1956
to
Investors
Income
shares
and
Oct.
A
of
reached one of its low points for
this six month period due largely
to the crises in the Middle East
Writer
COLO.
DENVER,
according to the proxy statement,
,f°UOd
stockholders.
Securities
dices
-
(Special to The Financial Chronicle)
Bakke is
25.3%
Chester D. Tripp, President, in¬
shareowners that at the
close
to
added, "on Oct. 31, 1956, the in¬
presi¬
of
formed
statement
,
Benjamin
become
With Peters,
Foundation Fund
increase
an
of National Securities & Research
Simonson
•
Television-
to
$116,730,597 total reported
earlier, the fund's annual
Corp., reported in the semi-annual
has
Robles
of
Fund, Inc. of Chicago
$132,618,446 at the
end of the fiscal year ©n Oct. 31,
amounted
had
ties '
be
assets
net
Electronics
and
total net assets of $284,454,242 on
Get. 31, 1956, the first half of the
-
(Special to The Financial Chronicle)
Lennon, President of
Income
proxy
.
Smith
Total
Series
sponsored
with Leo G. MacLaughlin Securi¬
by
derwriter of the Fund.
Fund
PASADENA, Calif.
•;
accumulation
for- the
Federated Plans, Inc.,
mutual
fund
sales
organization,
which becomes the principal un¬
New York
New York 5,
*'*
»\
of Fed¬
Fund.
Plans
#.
according to Income
be unchanged
by
offered
Corporation
gains.
which has advised the fund in the
«
established 1930
million
one
will be about $4 million. Substan¬
combined
tion Fund for each share
'
than
dollars of unrealized capital
Founda¬
The
funds.
balanced
more
Lionel D. Edie & Company, Inc;
Fund whose
Securities
.funds,
managed, by the National Securi¬
rated
leader in performance
a
the
among
Fund, becomes invest¬
to
the first
Charts
Johnson
1956
the fund
Managementv Corporation,
investment manager of
adviser
Fund
was
registered under the
Investment Company Act of 1940.
proposed plan, Fed¬
mutual
current fiscal year, compared with
report
$283,786,512 six months
earlier showed today.' The net asset value
and $249,042,081 on Oct. 31, 1955,1 per
share rose
to
$11.97
from
;
;
*
was' Henry J. Simonson Jr., President $11.06 on Oct. 31,-1955.
assets
tion
erated
:
a
mutual fund
a
r
information
as
...
Foundation
Income
Fund
the two funds.
Federated
'
of
of
of Income Founda¬
tion Fund.
Foun¬
Income
Federated
meeting
Under the
erated
of
and
notice
merger of
Investing for Income
be¬
board
continues
Barton
trustees
come
dation Fund
bers
Up
To $132 Million
Other Federated trustees be¬
tee.
er
Co., 460 Montgomery Street, mem-r
Fund
the
of
member of the executive commit¬
SAN FRANCISCO, Calif.—John
G.
President
now
Foundation
Income
of
comes
With'Sutro & Co.
National
The
Exchanges. He was former-:
ly with Francis I. du Pont & Co;
:*
Assets Go
-1
to
m i Million
221
Stock
J
TV-Electronics
;
Mitchell
J.
Hooker
New
Nat'l Securities'
■
"FRANCISCO,; Ca 1 if.—.
Christopher
with
Financial Chronicle)
53
-
&
-
Templeton/"
35 CENTS
A SHARE
Distribution uf Unitized Profits
Dividends and
December 24 to
at
4:30 P.M.,
24
Distributions payable
shareholders of record
December 3, 1956.
Federal Strcef, Boston
54
54
The Commercial and Financial Chronicle
(2434)
Continued
from
greater value than at the close
a
53
page
of
previous
any
fiscal
year.
At
the fiscal year
Mutual Funds
its
end, the fund held
investments in petro¬
larger
market
Investors Stock
value
uted
Assets Reach
Stock
affiliate
Diversified
follows:
as
distrib¬
were
stocks
common
of
New Haven has succeeded
taining
ST.
LOUIS,
Norman
W.
limited
Mo. —On
Halls
will
Dec.
become
a
of
Smith, Moore
& Co., 509 Olive Street, members
the
of
Stock
New
York
its
cluding
freight
Investors
of
while
has
that
means
it
has
The
in¬
expense
diem
charge
being
covered
unloaded.
could
pro¬
closed.
- The
number
of
shares outstanding was 15,485,821
this year compared with 10,973,port
435
a
ago,
year
previous
istration
which
was
admin¬
replaced
in
Dividends paid from investment
to
to
January
-net
March
while
and
reflecting
income,
October
seasonal
a
amounted'-to 39*4
cents gain, amounted to $424,107, this
and net results for the final two
share for the year compared
with 37 cents per share for the months will not be sufficient to
preceding year. A distribution of compensate for the losses and the
lower
rate
of
earnings - of the
28% cents per share derived* from
earlier months of the year.
The
realized
securities
profits 1 was
income
per
made at the fiscal year- end. More
than
88%
of the fund's share¬
reinvesting
were *
dividends
purchase
their
distributions
and
new
"
to
reduction, still amounted
$761,381.
to
As
was
$13.23
on
Oct. 31, 1956,
a
net deficit of something
$500,000 for 1956, according
over
to
result the New Haven will
a
show
Net asset value of shares of the
fund
stantial
estimates.
current
ICC
Under
the
accounting formula
this
means
deficit
per
DIVIDEND NOTICES
standard
share
a
on
ferred and
cit
the
investing in
common
stocks
Fundamental
Investors, Inc.
/
descriptive prospectus send
this od to your
investment dealer
or
Hugh W. Long and Company, Inc.,
Elizabeth 3, New Jersey.
CFC
$2.75
a
$1
bond
indentures
of
$3.25 per share deficit for
the preferred and a $3.65 per share
deficit for the common.
a
By either accounting method, it
is
thus
indicated
that
the
41/? %
interest will not be earned on the
road's $67.5 million income 4V2s.
On the basis of available
earnings
provided by reorganization
terms, it is currently estimated
as
A balanced fund
that only about $1.5 million to $1.6
million will be applicable to the
interest
[nvestment
Fund, Inc.
For free
descriptive prospectus send
this ad to your
investment dealer
or
Hugh W. Long and Company, Inc.,
Elizabeth 3, New Jersey.
CF C
on
this issue for payment
next
May 1. This would be some¬
thing less than 2V2%, but it is
provided that interest on this-is¬
sue
of
may
the
even
be paid at the discretion
road's
if
not
board
of
directors
earned.
of
the
New
current
Haven
em¬
to
seems
that
in
suspense
be
the New Haven
*1956
;■
1954
1953
had
under
the
most
113
106
a
it
will have
ipost
to
conserva¬
the
most
are
challenge to
and
diligent
a
capable
One of these prob¬
management.
lems
centers
around
the
large
proportion represented by passen¬
ger
business
which,
including
commutation, resulted in
of
ICC
formula
for
cost
large
proportion
of
earning
Securities,
A mutual fund
in
may
>
bound the road to buy back
certain banking interests
the
119
US
116
to pay a $5
97
106
1956:
1950__
'
96
per share dividend in
The dividend
agreement; of
course,
became
impossible, and
♦Estimated.
The
management
Haven
.is
of
studying
was
the
to
New-
make
the
best of its situation
by
abandoned
in
studies
ward
or
are
1952
is
movement
powered
improving
was
entirely
Steam
now
of
all
and
abrogated, and the repurchase
date
or
extended
was
in
be
can
time.
hurt
to put up
if
A
PROSPECTUS
age to supplant
interlocking
and
remote controls. There is
greater
ment.
freight
the
rate
room
efficiency of train
We
four
not
are
63 Wall
Group, Incorporated
z
to
lengthen
move¬
by this time by implication, \
DIVIDEND
NOTICES
alloca¬
llCth CONSECUTIVE QUARTERLY CASH
DIVIDEND
-
The
Board ,of
Directors :has -declared
cash
dividend
of
$.25
as
payable
record
per
''
an
close
29, 4956
On
round
the other
of
to
stockholders
December
17,
Wm. E.
Over .1,000
offices
U.
in
S.
of
1956.
Thompson
Benefkial
pending
increases, including
current
-
December 5, 1956
from,
/
-quarterly
Common Stock
of- business
Secretary
.
Canada, Hawaii and Alaska
SYSTEM
emergency
increase for
the roads have applied to
the
a
'
l
share
December
at
wage
hand, the
NOTICE
CONTINENTAL
of
$1.371/2
per
share
on
BAKING
COMPANY
day
-
a
quarterly dividend
the outstanding $5.50 dividend Preferred
Stock, payable January 1,
1957, to stockholders of'record
at
the
close of business Decemher 7, 1956.
Common Dividend No. 47
The Board of Directors has declared this day a
dividend, for the fourth quarter of the
the outstanding Common
year
6S0""!iE-—5--—
regular quarterly
1956, of 50^
per
share
Stock, payable December 26, 1956,
holders
stock
at
of
the
December 7,
record of
sucli
close of business
1956.
The stock transfer books will
REQUEST
Street, New York 5, N.Y.
going
this article by a discussion of New
Haven common. Its position must
have been made abundantly clear
for
7%
which
not
a
has
deal and what the attitude of the
is going to be.
Gross ton-miles per freight
from your investment dealer
Distributors
ever
ICC
fourteen obsolete
segments
"balanced"
ON
road
diesels for $14 million' commitment calls for. It remains
supplement the 399 diesel units to be seen what is done about this
owned at the 1955 year-end. Plans
also call for complete CTC cover¬
to
agement's judgment.
the
the $9.2 million that the
additional
of last March 7, and the
earnings have sufWfvJ
rordingly. By the same token, the
New
Haven
will
get less than
Tmentdealers or
man¬
of 1959.
Holders of the preferred outside
the
banking
interests
with
hand,
dieselization
August the road ordered 80
on
in accordance with
two years,
train
dieseL which the deal was made can not
electric, while present: benefit by the $70 per share com¬
understood to look to¬ mitment and, on the other
total
6%
stocks, with the
proportions
for
until the latter part
either
road's
relief
fr'om
131,385
shares of the preferred at $70 per
share in the latter part of 1957 and
deficit
such
Wjhat
purchase agreement contracted'by
the previous administration which
passenger
increase
even
suffi¬
lend speculative
preferred is the re¬
the
to
102
apply
rate
pre¬
to
appear
105
is represented
by freight revenues
is a small base on which to
bonds, preferred and
common
be
can
have to rebuild its finances,
104
business which is ordinarily prof¬
The approximate 60% that
—-ft2Sr
investing
full in¬
the
prospect, for
power
104
-
inc.
of
ciently resuscitated, the road \yill
The Board of Directors has declared this
Incorporated 1933
years'
case
remote
a
101
itable.
freight
be
may
is the relatively small
proportion represented by freight
THE FULLY
Group
comfort
business,
a
are
interest
^aid
be
if
Preferred Dividend No. 72
OF
they
tion, although the out-of-pocket
loss was
considerably less. Sec¬
ondly, and as a corollary of the
increases.
ADMINISTERED FUND
if
4y2%
stock, however, it is al¬
euphemism to call it spec¬
a
to
104
$14 million in 1955 under
over
the
a
this
more
fact
three
or
105
to
"built in" problems of
hand
In. the
1951
provement in the level of earnings
may be achieved.
On the latter
the
safe
ulative at the present time.
J At
this point the resumption of divi¬
dend payments can only be
117
100
or
The
some
1952
efficiency.
certainty
4V2%
terest.
*
102
New
the
that unpaid in¬
is cumulative to the extent
ferred
Total
95
______
in the
of
Revenues
99
_
but
terest
Class I
District
the
on
charges should be
full
on
issue,
flavor
New.Eng.
of
be
times
other
found
aver¬
102
1955—.
Last
offset
DIVIDEND
that
virtual
a
restrict itself to
rent assets of
cur¬
New
■>'
the
income'4V2s
disappointing to holders
be
counting
100:
as
Haven
tive financial policy for some time
to come even though some im¬
phasize the word "discretion." As
of last Sept. 30 the road had4 cur¬
$33,609,000, but
further
road's previous administration.
Under
these
circumstances
normal
However, the depleted
finances
held
the New Haven
reorganization, on the
other hand, this means that avail¬
able earnings after providing for
capital fund and sinking funds re¬
A
charges
score,
the
later.
the 1947-49
on
—
level and made effective at
certain
Under
per
age
road
added
payment next May 1 as suggested
by the previous discussion of this
which restored certain reserves to
proper
$5 pre¬
share defi¬
common.
the
about
1947
flect
For free
of
terms
A mutual fund
the
on
of
the "road's
month
a
the $4.4 million adjustment of ac¬
counts in December of last year
been
sub¬
a
re¬
indices based
the
element contributing to the workT
ing capital deficit may have been
of
shares at net asset
value.
deficit
once
although showing
of
$11,544,000 deficit
working capital as of Aug. 31
the
aforementioned
$319,000
net deficit for the first ten months
year,
loans,
the principal factor in the
was
duction
of this year. The New
Haven has operated "in the black"
since
gain of nearly
a
41/2 million shares.
holders
extension of other collateral
1.25
the
on
-
of the
to
ihe road's worst.
is the heavy per mile capitaliza¬
ended
Oct. 31,
1956, Joseph M.
tion of the New Haven which is
New York, New Haven & Hartford
Fitzsimmons,. chairman
of
the
the highest of any major road—
Board, announced in the eleventh
more than
30% higher than that
Concern over the New Haven rent liabilities of $33,928,000 with
annual report of the fund. Figures
of the Pennsylvania which has 5%
in the report were adjusted wher¬ situation has increased as we ap¬ the result of a $319,000 deficit in
more
revenue
per mile, for in¬
ever applicable to reflect the twoproach the end of the year, and working capital.
The restricted
stance.
Finally, there is the lag¬
for-one spilt of the shares which as it becomes apparent that this current finances of the New
gard trend of traffic and revenues
became
effective
on
April
26, road will have no net income for Haven are due mostly to the her¬
of the New Haven which presents
1956,
Mr. Fitzsimmons
pointed the first year in a decade. The itage of the burden of flood losses a formidable
operating problem in
full year's result has been bur¬ sustained in August and in Octo¬
out.
this era when almost
everything
dened by deficit operations in the ber of last year in spite of the
The
year
was
one
of
un¬
else is on the rise.
The relative
which
were
funding of $16 million of these
precedented growth for the fund. first three months
trend of New Haven revenues and
The addition of 25,000 new share¬ penalized by, among other things, costs into long-term debt. The fi¬
their lag even
behind the New
charges nal move in this direction was the
holders raised the total number a bulge in maintenance
England District in some years is
from
37,000 last' year to 62,000 by the new management in order supplementary flood disaster loan shown
by the following table of
when the fiscal year under re¬ to make partial amends for the of last September which, with the
practices
also
which is hoped to have been
year,
posed recently by the AAR direc¬
torate. Another "built in" problem
By GERALD D. McKEEVER
bonds
appear
side since fixed
burden will be increased if
the per diem charge is raised from
the present $2.40 to $2.75 as
Railroad Securities
Services, Inc., rose to
$204,592,575 from $133,357,772, an
increase of $71,234,803 or approxi¬
mately 53%, during the fiscal year
which
senior
Haven
on
during the free time
are
disasters
burden.
disproportionate
per
they
the
$16 million to its long-term debt
connecting
This
Investors
and
money,
impoverished :by
1955
terminal
cars
cost
been
in'receiving 74%
a
the
handicap of
from
which
shoulder
amount
Exchanges.
hour
of
40,790 in
1955
showed only the little better
than
average gain of 33% over the 1946
figure of 30,553.. But- improve¬
well
as
Thursday, December 6, 1956
.
ments
tonnage
carriers
to
Midwest
and
Connecticut
.
train
com¬
York, Massa-..
interstate.
the New Haven
in
partner
and
New
A third factor is the
31
in ob¬
22 y2% increase in
a
muter fares in
as
mutual invest¬
Fund, Inc.,
fund
ment
of
assets
net
date
investments
chusetts
market
93.83%;
convertible 'bonds
and
preferred stocks 5.20%;
United
States Treasury bills 0.97%. Total
$204 Million
Total
that
on
at
all
Smith, Moore Partner
electric and electronics industries.
taken
of
exceeded cost by $44,126,563.
year
leum, power and light, chemical,
Investments
value
held at the close of the 1956 fiscal
.
be closed.
WILLIAM FISHER
treasurer
^
^CAKE
November 28, 1956
"
Volume
184
Number 5592
.
.
.
The Commercial ctfid
Financial Chronicle
(2435)
New Walston Office
Walston & Co.
Inc.,
of the New York
Stock
-
members
Exchange,
the opening of a
have announced
office at 163 West 29th Street.
branch is the seventh
new
The
oper¬
ated
the
by
investment- firm 4n
New York City.
Walter E.
dent
Partner
■>
Joins Reynolds Staff
the
new
ager, and Ben Lewis,
tered representative.
SAN
-
the
members
and
dividend
man¬
--(Special to Tat
regis¬
Street/.
of
Financial Chronicle)
the
'.
V& \f '
•
106
.■!
.
The
declared
payable January 2, 1957
Transfer
"s
a
*
dend
Board
of
Amphenol
Electronics
a
R.
Preferred Dividend No.
toddy
1957.
be
quarterly
The
at
transfer
books
will
G.
dividend
No.
of
75d
Preferred
share
and
fifty
B.
3,
at
the close
holders of
of
business December
12\ l956November 28, 1956
17,
V
ajfj^lared
$.25
January
books
E.
F.
the"
Cable
dividend
a
on
out¬
The
holders
to
1956.
remain
The
P.
of
ers
ness
has
Dividend
fe
71
record
at
the
December
on
York,
N.
Beard
Y.,
and
•*
company
27,
Patten
of
ers
ness
1956
dividend
being
ital
of
also
Twenty-five
Dividend
Stock
declared
of
No.
this
180,
cents
•
of
In
business
addition,
dividend,
Common Cap¬
payable March 1,
Common Capital Stock
of
1957,
to
business
the
the
January
share
December
of
7,
1957.
declared
per
share has been de¬
the $25.00
on
par value 5 Y per cent
Cumulative Con¬
vertible
close of busi¬
December 14, 1956.
Preferred
'Stock,payable
December
to
Secretary
CONTROLS
1956
of
the
close
business
of
MR.
20,
stockholders
<s> record
De-
at
cember 10, 1956.
COMMON STOCK
A regular
quarterly dividend of 37J£c per
share has been declared
Stock
payable
stockholders
of
on
the
December
record
Common
20,
at
business December 10,1956.
fer books will not be closed.
1956
to
the
close
of
The trans¬
y,'
WALTER H. STEFFLER
QUARTERLY
DIVIDEND
Street, New York
|
New York, December
5, 1956
J
The Board of Directors has this
day declared
The Board
day
dend
^November 29,1956
clared
declared^a quarterly divi¬
dend
of
40 «ents
dividend
cents)
and
1957
sl^ire
on
par
payable January 2, 1957,
to
on
$10,
at
the close of business
Series
stock¬
Cents
on
December 14, 1956:
dividend of
extra
an
per
January 15, 1957,
holders of record
at
extra
year
1956, of Sixty
the Common Capital
payable
January
10,
record at the close of
4.25%
4.35%
$1.0875
Guaranty Trust Company
4.35%
$1.0875
of New York
4.40%
$1.10
STUART K. BARNES,
Sec-etary
37^
PER SHARE
Payable December 28, 1956
Record Date Dec. 10, 1956
Declared November 30,1956
VINCENT T. MILES
1956.
———
COMMON STOCK
$1.0625
Series E,
B)PLAGER, Secretary
$1-25
Series I),
DeCeipber 5th, 1956.
RALPH
Company
(Incorporated)
to stock¬
the close of
Series F,
business
——
Quarterly Dividend
business December 14, 1956.
Per Shore
Seri^BT5%
the close of
at
-r
Eighty (80)
share, both payable;
Series G,
holders of record
Electric
quarter
ending December 31, 1956, and
holders of Preferred Stock
of record
the capital
thifcacompany,
to
Capital Stock,
Company for the
following quarterly
payable January 1,
dividends
of'yO cents (total 50
per
the
extra
an
of
a
per share on the
of this
The Board'of Directors has de¬
4>j|Director8 has this
THE
quarterly divi¬
Eighty " (80) Cents
PREFERRED STOCK
-
an
quarterly^
regular
clared
In All Phases of Television
on
Company,
stockholders
Comoany at the
25,
the
Board
179, for the
No.
(60c) per
Cents
Stock
per
day
a
share,
Company,
1957, to holders Of said
registered on the books of
close
(25c)
One Wall
stock of
the
on
A
Treasurer
November 28, 1956
"
D.
.
C.
120
WILSON,
Broadway,
Assistant
New
Treasurer
York
5,
N.
REYNOLDS
Y.
WEST PENN ELECTRIC
SYSTEM
Monongahela Power Company
The Potomac Edison
West Penn Power
METALS
Company
Company e
COMPANY
Cerro
drf*Z&maZuma7
Pasco
de
DIVIDEND
.
NOTICE
Reynolds Metals Building
Richmond 19, Virginia
V'/HIl
rm
Corporation
The
The
Board
Ccrro
at
a
de
of
Directors
Pasco
Corporation,
meeting held on Tuesday,
4, 1956, declared a
cash
dividend
(40^)
mon
share
Stock of the
payable
to
per
of
forty
on
cents
I
the Com¬
Corporation,
December 27, 1956,
stockholders of record on
on
December 14, 1956. The Trans¬
fer Books will not be closed.
& CHEMICAL CORPORATION
share on the
$4.25 Cumulative Preferred
stockholders of record
10,
oTbusiness
Regular
Quarterly Dividend of
at
1956.;-?
One Dollar
300 Park Avenue
Secretary
quarterly
$0.25
dividend
of
Forty Cents (400)
per share on the Com¬
„
ord
on
at the,close of
business
Dec. 1G, 1956.
Transfer books will not be
closed. Checks
mailed.
per
will
per
be
Share
Vice
President, Financial Division
of
"
1
-AW,
i-xixXjx-xSvjr
1
PH05PHATE* POTASH'PLANT FOODS
•
CHEMICALS
INDUSTRIAL MINERALS •
AMINO PRODUCTS
twelve
and
of
one-half
December
1956.
A
a
Stock
j
|
{
j
declared by the Board
of Directors out
27,
the
of past earnings,
10,
payable
dividend
share
on
has
of
the
fifteen
Jan. 2, 1957,to
stockholders of record
been
Transfer
on
(154)
outstanding Common
cents
declared,
payable
at the close of business
January 4, 1957, to, holders of rec¬
ord at the close of business
Decem¬
ber 10, 1956.
The
thirty-seven
per share was
a share on the out¬
Common Stock has been
business
0f
and one-half cents
(12 V2 <0
Books
will
not
closed. Checks will be
mailed
The Chase Manhattan
Bank.
Dec. 12, 1956.
bo
by
I
ALLYN
>
dividend No. 275
n^rrv\\
declared,
payable
December
1956, to holders of record at
close
Share
A. R. Cahill
Secretary
Share
On Nov. 29,1956,
January 11, 1957.
standing
Declared—Nov. 15, 1956
Record Date—Dec.
14, 1956
J. W. Reilly
payable
dividend
cents
^
Preferred Stock: Dec. 30, 1956
Common Stock: Jan. 2, 1957
a
January 31,
February 1, 1957,
COMMON DIVIDENDS
A
Payment Dates
Declares 275th Dividend
holders of record at the close of
business
$5.00 Par Value Common Stock
Stock,? payable Jan. 1,
1957 to
stgpkholders of rec¬
New York 22, N. Y.
($1.00)
■..
Common Stock
A
mon
Michael D. David
1957,
DIVIDENDS
59th Consecutive
Dec.
on
quarterly dividend of
and
three-eighths cents
4% Cumulative Preferred Stock
Stock, payable Jan. 1, 1957
the close
fifty-nine
(59%c) a share on the outstand¬
ing
Cumulative
Preferred
Stock,
43A% Series A, has been declared
to
QUARTERLY
$1.0625>per
YALE &TOWN E
regular
for the quarter
ending
20 North Wacker
Drive, Chicago 6
A regular
quarterly dividend
to
The
I
INTERNATIONAL MINERALS
Preferred Stock
of
DIVIDEND
I
i
beSTT"declared by the
Board of Directors:
of
December
following dividends
have
PREFERRED
"1
i
i
Cash Dividend No. 146
■*
STOCK
dividend of $0.34375
flUMONT
company
.
1056.
this
on
be
FULTONI
November 27,1956
of
Board
-
Groensburg, Po.
record at the
on
Gf.rard A. Weiss,
Irving Trust
share,
The
close
will
Secretary & Treasurer
dividend
a
the
Checks
PREFERRED
1956.
LONG ISLAND LIGHTING COMPANY
Directors
has .this
day de¬
of
Twenty-five. Cents (2pc)
being
Dividend
No. " 116, »on
the
Preferred Capital Stock of
this Company, pay¬
able
February 1,
1957, > out of undivided, net
profits, for the year ended June 30, 1956, to
holders of said Preferred
Capital Stock regis¬
tered
on
the
books of
the
Company at the
close
ot. business
December -28,
1956.
clared
per
February
at
SHRIVER, Secretary
for
Capital Stock was declared, pay¬
able January 4,
1957, to hold¬
..
November
record
1957.
1956.
close of busi¬
14.
t
tgpeka
railway
payable
of
CONTROLS COMPANY
declared
No.
Rome, N. Y., November 29, 1956
Secretary
A.
27,
A
stock
distribution
of
one
share of Common
Capital. Stock
for every twenty shares of Common
at
the
of
1956
atchison,
29,
share on the Common
Capital Stock of the Corporation,
payable January 4, 1957, to hold¬
Treasurer
November 28,
November
stock
open.
Corporation
January
35 cents per
14, 1956.
Stanley
Corporalion
conseculive
its
five states and Ontario
Page, Secretary and Treasurer
santa
New
1957
10,
will
November 28,
-
2,
December
transfer
the
to stockholders
ROBERTSHAW
The Board of Directors of Rome
plants*
iri'fS cities, located in
extra
17
71st Consecutive Dividend
Mtijtiufacturing
a
York
capital
of
1957,
business
Dated
share
per
New
a
meeting
ol
the
Board
of
Directors
November 27,
1956, a dividend of fifty
per
share was declared
on
the
held
December
dividend
:j££iHENGST,
share
per
ferred Stockholders of record
the close of business
No. 145)
a
Avenue,
Dividend Notice
At
President.
standing shares of 5% Cumula¬
tive Convertible Preferred
Stock,
payable January 1, 1957 to Pre¬
COMPANY
cenj^(50c)
dividend of 15(f per share on the
Common
have, been declared.
Dividends are
payable
Lexington
Treasurer
"
Stock
record
420
J. T. CULLEN.
RIONDA. BRAG A,
1956.
this day has declared
of
MANUFACTURING
com^kdn shares of
the
1956,
an
December
on-
record
at
;' " 'i
November^O, 1956, the Board
share
for
31,
busines
record
Laboratories, Inc.
to
shareholders of record at the
close of business Dec.
10, 1956.
per
Stock
December
of
Capital
December
of
..
••)...
Company, payable Dec. 21, 1956,
193
Dividend
stockholders
America
of
DIVIDEND NO. 288
The Board of Directors
has declared
dividend of 50? per share on
the out¬
standing Capital Stock of the
Company
of the
par
value of $12.50
per
share,
payable December 21, 1956, to
Twenty-five
the
on
payable
Vanadium Corporation
formerly
The Board of Directors of Allen
B. Du Mont
PACE, Secretary
(OliriDEND
of Directors
notices
a
day
LABORATORIES, INC.
not
Chicago-November 27, 1956.
the
*
dividend
the safety car heating
and lighting
company, inc.
5
this
D.
Whittier
INDUSTRIES, INC.
,,
m^2M
East
Boulevard.
dividend notices
ALLEN B. SU MOAT
,y|
|
FRED
on
13412
D.
wenty-f jye cents per" share
closed.
Dated
Co.,
Wil¬
J.
mailed.
declared,% payable January 25.
1957, to the shareholders cf record at
.the'rclose of business
EXTRA
203
Common
per
Creger
14,
■was-.
ot
25tf
Ill
Street.
of
HENRY. Secretary
Company
of
WHITTIER, Calif.—J. D.
liamson, Sr. is now with
divi¬
of "t
On
dividend
the
stock
remain
American
the
to
Co.,
&
Cor¬
hold
Decem¬
Bank Note
on
Calif.—Jas.
added
Weld
Direc¬
CLEVELAND 10, OHIO
quarterly
been
-
meeting 5®* the
of
EATON I
(l'A%)
Sutter
has
White,
cents
January*: 11,
will
close
December
Stockhold¬
to
books
to
York
has
of
share
per
outstanding,
1956.
.
New
Directors
dividend
a
1956,
the
Checks will be mailed.
quarter-ending
of
notices
Street,
of
Cents .(25c).
26,
At
STOCK
of jecord at the close of business
A
FRANCISCO,
Morse
(Special to The Financial
Chronicle)
Amphenol Electronics Corp.
notices
-PREFERRED
JOHN
R.
staff
francisco
Wall
Board
Stock
PhiladelphiaExchanges,.-on
On November 27, 1956 a
quarterly dividend
of. one and three-quarters per cent was de¬
clared on the Preferred Stock of this Com¬
open.
been
Reynolds &
sugar company
dividend notices
the
CAN COMPANY
1956.
SAN
—
SAFETY
PASADEN4, jCalif. — Glen W.
Duke has become
connected with
J. Logan &
Co«, 721 East Union
AMERICAN
13,
has:
stdff of
With J. D. Creger
(Special to The Financial
Chronicle)
J. Logan
WitK
;
poration
ber
Rowland
.
to 4he
dividend
tors
ers
Calif.
Co., 425 Montgomery Street.
Baltimore Stock
Jan. 1 will admit Charles
Wesley.
Welsh, 2nd to partnership.
pany,
H.
.
added
Y^rk and Philadelphia
office;
Glendinning Partner
=York
FRANCISCO,
Walter
.
National Bank
building, members
of the New
-PHILADELPHIA, Pa.—-Roberl
Glendinning &< Co., 123 South
Street,
White, Weld Adds
(Special to The Financial
Chronicle)
Scott, Jr.January 2nd will
become a partner in
Hallowell,
Sulzberger .^ -iCo., Philadelphia
Stock Exchanges.
of
manager
New
Co.
Pa.— Blaine
McNerney is the resi¬
Myron H. Handler, associate
Broad
i^^lallowell
PHILADELPHIA,
W.
55
DILLARD, Secretary
Dated, November 29, 1956
f. dunning
Executive Vice-President and Secretary
THE
YALE & TOWNE
Cash dividends
MFG.
CO.
paidineveryyearsincs!899
W
The Commercial and Financial Chronicle
(2436)
.
Thursday, December 6, 1956
..
BUSINESS BUZZ
The Labor Outlook in 1957
Washington
By WILLIAM HABER*
Economics, University of Michigan
Professor of
...
freedom from
labor disputes will prevail during the year immediately
Michigan University labor economist avers real
major
Professor Hafcer expects:
ahead.
(1)
unemployment in¬
(2) labor
any
Column Not
stimulate drive for reduced work week;
to
crease
Available
with labor force increases but
very rapid rate beyond that; and (3) fringe items
will advance more rapidly than the wage increases which are
taken for granted.
union
not
membership to
at
grow
This Week
a
The year 1957
relative
will be
a year
either
of
or labor.
provisions for reopen¬
management
to
Even where
in American labor
The
major collective
peace
adopted.
arrangements.
Most
of
tant vintage. Switches aim to take
do
not
expire
they
are
subject to
re-
Slowed
opening
during 1957.
As
The year 1957
result
a
to
recouping
the
While
tries.
WHliam Haber
do
ex-
J
v
an
be reopened, as in the
industry or coal-mining,
there is a good chance that real
freedom
from major labor dis¬
pire
the
or can
members
following day bankers wil"
bid for 80,000 shares of new pre
stock of- Delaware: Powe
&
&
"Reckon
4
about
time
conditions
period,
increases
wage
Almost all
contracts signed in 1956 provided
for such increases and many in¬
for
taken
granted.
increases
deferred
cluded
be
to
put in effect in 1957 and 1958. For
the
most
provide
they
part
in¬
of somewhat less than 10c
creases
a
the
about
shorter
movement? There will be
regard
drive
for
There
is
shorter
a
strong
problem
this
various unions are
and
exploring the practical aspects in*1957 should
volved.
see
intensive
preparations in this area. Any inc r e a s e
i n unemployment will
hour.
**Fringe Items" will continue to further stimulate interest and has¬
per
important part in col¬
barganing
negotiations.
These will advance more rapidly
occupy
an
lective
than
and become a large
of payroll. There is
strong evidence that what is actu¬
ally taking place in industrial re¬
lations
in
recent
years
is the
establishment of a private system
*of social security to supplement
the benefits paid under the public
.schemes or to provide such ben¬
efits where public plans do not
exist. Thus supplementary unem¬
wages
component
ten demands
for
a
reduced work
week. The speed
with which these
are pressed will depend upon the
needs
of
national
defense, the
general economic situation and
automation.
f
The 35-hour week
vails in
some
already
industries.
pre¬
In cloth¬
ing, printing, construction, brew¬
eries, for example a 7 or 7 Vz hour
day has been in operation for
some
-XXt
time.
Unemployment Will Pressure
Shorter Hours
ployment benefits, disability ben¬
and private pension plans
supplement the three public pro¬ the work day or the work week
in these fields. Disability can be cut without loss in stand¬
pensions and
health protection ard of living unless there is a
provide medical benefits to nearly proportionate increase in produc¬
13,000,000 employees. Recent con¬ tivity. A reduction from 40 to 39
tracts suggest a large liberaliza¬ hours per
week, for example, rep¬
tion
Of
paid vacations with j a resents
a
2 V2%
decline
about
strong trend to
weeks
for
weeks
and
minimum of two equal to the annual increase in
and three man-hour output. There is real
a
everyone
for
more
those
with
longer seniority. Everything indi¬
the
that
cates
trend
ther liberalization
efits
of fringe
continue
will
fur¬
toward
in
ben¬
1957
and
1958.
in my
wage
earnings
for
leisure if any part of it
come
at
the
sacrifice of
is
mind
as
to whether
really
are
to
standard
of
living.
Quite
apart
from that several practical prob¬
lems must also be considered. One
long-term contracts is a post¬
development and has many
hours
.■■vv cv .:yy yyv'
1
In
i
advantages. Negotiations are long
costly and annual or bi-an¬
nual
ready
have
agreements
tive and create
situation.
As
are
an
a
both disrup¬
uncertain labor
result
an
increas¬
ing number of labor contracts
are
for two and three years and some
double
choosing
than
leisure.
tone permeating the pri¬
and also the secondary, in¬
corporate new issue mar-'
vestment markets, Michigan Bell
ket developed a bit more cheerful
Telephone's $30 million of new
tone this week with better de¬
35-year debentures encountered
mand reported
greeting several
relatively satisfactory reception
top-rated offerings which were
upon public offering.
put out for subscription.
Priced at 102.266 to yield about
The improved situation was not
an
outcome of any change in at-,
titude
the
part of large scale
institutional investors, but rather
on
reflected the appearance of small¬
er
investment units
as
4.25%,
issue,
the
proved
a
is reported-
cool to smaller-sized issues
invest¬
was
reported.
buyers.
Major insurance companies and
the larger pension funds were still
reported pretty much out of the
market on the buying side with
the bulk pf their available funds
being
pledged
under
previous
commitments by way of private
placements or mortgages.
as
AAA,
some
quick cleaning of the "pot"
pressure
in
this
situa¬
is
no
doubt
likely to increase with
longer. The difficulty which arises the reduction in the
is
how
to
deal
with
unforeseen
conditions which make the provi¬
sions in
an
agreement unpalatable
♦Summary of
Haber
ference
before
on
versity of
the
an
the
address by Professor
Annual Con¬
Fourth
Economic
Outlook,
Michigan, Nov. IS,
work week.
in
crease
Nevertheless,
day
any
unemployment
or
those
work
day
methods
ployment
of
even
though
dealing
are
with
of
some
others
in
the
available.
-
NASD District 11
Elects Members
don't
•
smaller
develops
that
who
get
it
much
of
a
chance
at
private placements, are inclined to
look
more
kindly
Seeking
"Tax
Switches"
The tenor of conversations in
a
sues,
on
the oppor¬
This is
a
sure
sign that the end
of the year is approaching rapidly.
Naturally some of this activity is
developing in the corporate mar¬
kets as might be expected.
But the bulk of it currently is
being done In the tax-exempt sec¬
when available, at what they
tion of the investment field, with
up
District
C.
D.
new
—
An
members
Committee
o
No
11
(District of Columbia, Mary
land, North Carolina, Virginia an
West
Virginia).
They
are:
E
Clinton Bamberger, Baumgartner
Downing & Co Baltimore; Fred
erick J. Bellamah, Bellamah, Neu
hauser & Barret, Washington; an
Anderson
Strudwick, Richmond, Va.
Donald Macurda to
Be Smithers Partner
the Research
top quality is¬
tunity to pick
NASD's
Donald B.
on
counterparts,
Accordingly,
their
WASHINGTON,
nouncement has been made of th
election of three
Bell
number of directions these days
that there is not likely
gives one a quick hint of the
to be enough competition among
season of the year at hand. Eight
bidders.
They are disposed to now a number of bond
men, nor¬
await
larger-scale undertakings mally engaged in distribution, are
in
anticipation
of
wider-scale,
putting in their time working out
dealer competition.
"tax switches" for clients.
Macurda, Manager o
Department, on Jan
will become a: partner in F: S
Smithers & Co.,
1 -Wall Street
1
New
York City,
New
York
Stock
members of i;h
Exchange.
With United Investors
i
(Special to The Financial Chronicle)
DENVER,
Reynolds is
vestors
Colo.
now
—
James
F
with United In
Inc., U. S. National Ban
Building, Mile High Center.
TRADING MARKETS
A. S.
Botany Mills
Campbell Co. Com.
Fashion Park
Indian Head Mills
United States Envelope
Morgan Engineering
National Co.
Carl Marks
in¬
FOREIGN
SECURITIES SPECIALISTS
SO BROAD STREET
TEL:
& Co Inc.
HANOVER 2 0050
NEW YORK 4, N. Y.
.
Riverside Cement
LEANER & CO.
TELETYPE NY 1 971
T
L'
*"
■
-r
Y"9 """""
-
*
1
Sip|- .'X '?>-
Telephone
HUbbard 2-1990
j
Securities
18 Post Office Square,
'WgT'f-'l'
|
Sightmaster Corp.
Investment
*
other
unem¬
debentures slated fo
new
-
System.
the theory
will
stimulate the pressure for reduced
Uni¬
1956.'
work
swel
ty's $25 million of 21-year: gen
eral mortgage bonds scheduled fo
Thursday.
:
>
tion, making for better than or¬
dinary reception, was the fact that
obligations of Michigan Bell are
not as plentifully distributed as
for overtime which
the
will
Edward C. Anderson,
Another eldment
The f oregoing group
rated
attractive to
ment interests with the result that
Another problem is
more
deals
SI
bom
Wednesday and May StoresReal
mary,
employment
work rather
thus
for
mortgage
Largest of these is Texas East
Transmission Corp.'s .$40 mil
firmer
The
employees will oc¬
cupy two jobs. It is estimated that
nearly three million workers al¬
.and
bids
take
new-
ern
lion of
keeping witn the somewhat
many
war
will
of
negotiated
is the likelihood that with shorter
The
1 X
'X
■
y
eager
more
idea
Long-term contracts.
of
doubt
r
Michigan Bell 4%s
;
It would be folly to assume that
grams
ex.-
of
30-year, first mortgage
4%s, brought out to yield 4.20%,
made
the best showing of any
new issue in
recent weeks, going
out quickly to investors.
V
j
•
efits
•:
-
•
the week's total.
lion
day.
in
Two
j
f V Dallas Power & Light's $10 mil¬
strong
work
interest
1
company
reasonably satisfactory
as
yieids.1
hours
a
Light
X
'
Tuesday Florida Powe
on
'
rapid rate beyond that.
very
What
are-
that
buggy
stocky Matildy?" X/X
V.
but not
in the labor force
? crease
which have prevailed in the post-. at
war
sold
I
taken for my judgment labor union mem¬
is due to bership will grow with the in¬
under
that
fact
the
Light Co.
million
it's
,
increases are
-granted. In part this
■
Also
largely from
white-collar occupations and re¬
tail trades will take place in the
next few years.
Others contend
putes will prevail during the year
that the labor union membership
immediately ahead.
has reached a plateau and will not
advance much beyond their pres¬
Wage Increases and Fringe
Items Liberalization
ent size for the next few years. In
;
Wage
b
shares
Gas.v
ferred
three million
or
slated to'offe
are
day 820,000
same i
Arkansas-Louisiana
of
resources,
the
of jurisdictional dis¬
increase of two
union
rubber
selection-of
! i The
some consolidation of
Some observers hold that
unions.
relatively wide
week. Bankers
putes, and
agree¬
ments
should test the suc¬
pooling
elimination
collec¬
some
tive
th
for investors in
An offering- of
$22,480,000 of serial debentures o
the City of Montreal will be pu*
up for bids on Monday to open* th
membership expansion. One of. the
results of the merger between the
AFL and CIO will no doubt be
these indus¬
of
new4 issues looms
the week ahead.
grow?
to
turn
'
Diversified List
A
Growth
continue
the
after
..-j'-'-"'/'-.-'
year..
of the union drives for larger
cess
in
occur
Labor
Down
unions
Will
large strikes
are not likely
•
the 'current loss with the hope' of
it, is still toward longer period ar¬
rangements of at least two and
more likely three years.
V
I
jior
part involving some of
the turnpike issness of not too dis¬
The trend, as I see
t>een
these
small
no
ing of the contract where condi¬
bargaining agreements in the basic tions change substantially are pro¬
industries
vided, such contracts have many
tiave
advantages over the. short-term
already
relations.
and You
Boston 9, Mass.
.-.Teletype'
BS 69
@FedFRASER