Full text of Commercial and Financial Chronicle : December 8, 1955, Vol. 182, No. 5488

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ESTABLISHED 1S39

Utc 12
"'was
ma

Reg. U. S. Pat. Office

New York 7,

Number 5488

Volume 182

EDITORIAL

Price 40 Cents a

N. Y., Thursday,'December 8, 1955

National Economic Picture

Complexities in the

*

We See It

As
!

To be

er

net to be

By ROBERT R. DOCKSON*

"nonpartisan" in respect of

Partner, Hayden, Stone & Co.

foreign policies and programs during the com¬
ing political campaigns—that seems to be, if not
"the question" then at least one of the questions
which politicians in both parties are having much
to say about these days. One would suppose that
the fate cf the world, or a large part of it, hung

In his

the

description of the national economic picture, Pro¬
Mr.

employment to reach peak
levels; (2) the factors responsible for the current busi¬
ness picture and
are they strong enough to allow for
continued growth, and (3) outlook for high level of
business activity over the next decade. Holds private
sector of our economy was responsible for major upturn *
in business activity, but the big question now is whether
the expansion is about to end. Says much depends on
consumer spending, but concludes there will be a long
upward trend in business over next decade.
past year to cause income and

folkways of the day appear to require

that the nation shall be "united" when it comes

well be indifferent to it.

markets, describes the action of separate
market since September, 1953. Calls attention to factors

influencing the current stock market and its future oat-

look,, and concludes: (1) damage done by President's
illness has been restored; (2) the economic outlook

analytical tools he employs
happening to an economy and
what is apt to happen.
His task is very similar to the
task of the medical doctor who is

having

are

a

called
of

accusations

of

are

piake
and the
thereto
in the Republican

without doubt planning to

is another "issue" which many

party do not wish to remain on a

to

there

the

the

purchase when everybody feels
getting aboard. These statements
apply to the general psychology of
broad upward movements, or bull

like

markets, and broad downward move¬
ments, or bear markets. As if the

largely in the mind,
mental adjustments
application of normal

"nonpartisan"

R.

Robert

Dockson

psychological inhibitions were not
enough as applied to the large up
and down movements, there is also
another characteristic of the market

those

amongst

going
attack"

the

like

extent

to

us

that

disaster rather than

the

the 1929-33

rienced in 1937-38

or even

anything like

waivers of 1948-49

1953-54.

and

tie

the

on

IDA

20

page

address

Association

"

are

many

to

economy

who want to

the

of

by

the

Prof. Dockson Before
Los Angeles, Cal.

beat

heart

on

page

York "Times," Standard and
perhaps less representative of the
Continued

Finance,

City,

of

by

Mr.

Jarvis

before

the Seminar

an

extensive pictorial

State, Municipal
and

U. S. Government,

Short-Term Profits

Municipal

1 Securities
...telephone:

Are Worth While

*

STATE AND MUNICIPAL

HAnover 2-370#

13

BONDS

Suggested

Stocks

our

j. r. WlLLISTON & CO.
1881

C*TABLISHEO
NEW

ANO

OTHER

Miami

YORK

STOCK

—

OF NEW YORK

EXCHANGES

New York 6, N.Y.

Beach

BOND DEPARTMENT

REQUEST
THE

THE FIRST NATIONAL CITY BANK

CXCHANOC

STOCK AND COMMODITY

115 Broadway,

30 BROAD ST.,N.Y.

Bonds and Notes

REVIEW"
ARE NOW AVAILABLE

BANK

;

December Letter
ON

DEPARTMENT

BOOKLET

"ATOMIC ENERGY

CHEMICAL
CORN EXCHANGE

Public Housing Agency

COPIES OF OUR
NEW

in

BOND

32

Dec. 3, 1955.

in

State and

page

on

15 will include text
recent Annual Conven¬

along with Committee Reports, delivered at the

Investment Bankers Association of American, plus
coverage of this important yearly event.

the

DEALERS

.

on

Banking Sk
the School of Commerce, New York University, New York

address

♦An

1946 up-to-

from

Dow Jones, New

Poor's, and others, are

35

Bankers

Mortgage

America,

averages,

market

stock

date has been aware that the various

CONVENTION ISSUE NEXT WEEK—The "Chronicle" of Dec.

of the addresses,

tion

fact is there

American

Continued
*An

Continued

The

entire

our

who has followed, even
moderately closely, the activities of

N. Leonard Jarvis
*

"nonpartisanship," whether
with reference to foreign policy or to anything
else, is mostly mythical or unreal in one sense
but almost omnipresent in another sense. The
fact is that political orators rarely if ever let an
seems

heretofore unknown.

Anyone

expe¬

one

1946, that of selectivity, to the

since

and yet there are
us who feel certain
to collapse with a

pronounced

has become very

which

ex¬

are

healthy

we're
"heart

We

contrary and a complex

worst

is

situation.

a

in the sense that it is generally
best purchase when everybody
wants to leave it alone, and the

proper

latter

is both

are

the

other times

are

(4) large funds

contrary

concludes the per¬

doctor

illness

tremely

basis.
It

is

hygienic principals a healthy, useful
life can be enjoyed.
IVfy diagnosis
of today's economy is somewhat akin

of them next year. Communism
record of each of the party with reference
more

It

symptoms
There are times
is possible to identify the

and

and with
and

stock market

diagnose the

to

the

son's

party in 1952 thrown at them. In point of fact,
spell binders have been making a good deal
of President Eisenhower's
"achievements" in

Korea and

it

when

the

still

in

malady,

Republican

the

The

affair.

ailing person.

an

when

number of rather nonpartisanlike

and

statements

are now

relaxation

no

still available
for investment despite credit restrictions; (5) there will
be active tax selling this year, and (6) the advance in
stock prices cannot continue at current rate in coming year

of defense measures;

An economist has different

Republican party

(3) there will be

most promising;

appears

when examining what is

daily
pleading for "nonpartisan" treatment of all mat¬
ters that have to do with foreign relations—as did
the Democratic party spokesmen in 1952—and
Leaders of the

stock
of
sections of the.

Jarvis, after noting the complexities of the

market, which indicate it is composed of a number

,

to dealing
with foreign countries, and every
politician feels it necessary to insist that he and
his party ardently desires to abide by this rule of
conduct—although, of course, the other side may

Stock Exchange

York

New

Members,

(1) what has occurred within

fessor Dockson discusses:

the decisions made in this matter. The mores

and

JARVIS*

By N. LEONARD

University of Southern California, Los Angeles

our

on

Stock Market Outlook

Head, Department of Marketing

Professor and

Copy

HARRIS, UPHAM & C°
Members New York Stock Exchange

120
Bond

Dept. Teletype: NY 1-708

Rye, N. Y.

34

Chase Manhattan

BROADWAY, NEW YORK 5
offices from

bank

coast to coast

Net Active Markets Maintained
To

T. L.Watson &Co.

Dealers, Banks and Brokers

CANADIAN

1832

ESTABLISHED

Members

SECURITIES
Commission

New York Stock

American

Exchange

Orders

Executed

Canadian Exchanges At
CANADIAN

Stock Exchange

On

FIRST

getd/lW€4t COMPANY

BROAD

STREET

NEW YORK 4, N. Y.

Dallas

DIRECT

Abilene

•

Plainview

•

San Antonio

•




Tyler

•

PERTH AMBOY

Goodbody
NEW YORK

Express Co.
COMMON

Analysis

upon

request

DEPARTMENT

WIRES TO MONTREAL AND

115 BROADWAY

BONDS & STOCKS
All

Doxraox Securities

&

TORONTO

1

6rP0RATI07!

Co.

MEMBERS NEW YORK STOCK EXCHANGE

BRIDGEPORT

American

Regular Rates

Teletype NY 1-2270

25

CANADIAN

NORTH LA SALLE ST.

CHICAGO

40 Exchange Place,

New York 8, N.Y,

IRAHAUPT & CO.
Members New York

111 Broadway, N.
WOrth 4-6000

Teletype NY 1-702-3

WHItehall 4-8161

Stock Exchange
Exchanges

and other Principal

Boston

Y. 6

Teletype NY 1-2708

Telephone:

Enterprise 182©

2

(2414)

The Commercial and Financial Chronicle

The Security I Like Best

35 YEARS SERVING BANKS,
BROKERS

AND

DEALERS

A continuous forum in which, each week,

participate and give their

400 issues

over

a different group of experts
advisory field from all sections of the country

in the investment and

Primary Trading Markets
in

for favoring

reasons

Industrial, Public Utility

7

are

and Railroad Securities

they

he regarded,

to

as an

Partner,

Government, Municipal

Hourwich

&

number

Co.,

Florida Telephone Corporation
The Independent Telephone In¬

Bank and Insurance Stocks

dustry,

system,
continues
increas¬
ingly to receive the attention of
investors

looking

New York Hanseatic

Corporation
Established

Stock

120

Exchange

Broadway, New York 5

WOrth 4-2300
BOSTON

Wirei

Private

CHICAGO

•

SAN

•

to

Principal Cities

and at

120

Exchange
Exchange

in

these

market

and

omy.

ica

2-7815

behavior

understand.

basic

is

it is

the cost of

and

call

Alabama-Tennessee Natural
Gas

The

Horner &
Mason, Inc.

Lynchburg, *Va.
Tele. LY

62

LD

33

same

servi™

And

and

more

of large

blocks of

STOCKS & BONDS

social

America

ESTABLISHED 1929

ST Wall St., N. Y.

Tel. Hanover 2-4850

-Bell

a

railroad

other

or

fraction of the cost.

is

under

these

cir¬

a

relationships.

.

has fifty million

system.-

tele¬

There

5,300

are

of

serve

the area that is served by
Bell. The great growth of the in/dustry in the future is certainly
with the independents. The inde¬

pendents

all

are

through

distance lines

interconnected

their

or

long

own

through the. toll

facilities of the Bell system.

WALL
NEW YORK

STREET

cordial one and is governed bv a
historic agreement in the
industry,
arrived
at
over
50
years\ ago,
which encourages the
of the

independents.

The

allocation

of

revenues

as

the independents and Bell
is subject to regulation
by the
Federal Communications Commis¬

Florida

Telephone

Corpo¬

ration

is

of the

industry, said to be thirty-

one

of the

smaller units

eighth in point of size in the
_

a

It

in

area

na¬

serves a well integrated
the heart of Florida with

great growth potential; some of
has already
been
realized.

this

Florida

SUGAR

say,

Raw

—

Refined

—

Liquid

is

as

one

a
whole, needless to
of three fastest grow¬

ida

Telephone

located
the
DIgby 4-2727




conditioned

state.

eight
tion

at

Corporation

Ocala
The

counties

in

the

center

company

without

(In point of size it

are

of

serves

competi¬
is

about

one-fourth that of Peninsula Tel¬

New

iHi.itt.otzi*

jnutsTivaii

of

costs

and

maintenance*

tion.

for

The

invested

to

had

un¬

increased

from

it

War

capital in the

$7,387,558.
New

more

service; than

of World

same

favorable

Florida

The senior debt

company is held by such
known and conservative in¬

well

ropolitan
New

Massachusetts

as

Life

York

Mu¬

to

the

Railroad

the

Co,

Life

Insurance Co. of New York.

The

of

Hartford,

others.

Conn.,

Commission

has

Public"

The

has

company

projected

a

growth that will increase its sta¬
tions to 45,000 by 1958 with a total
capital investment of about $17,-

000,000.

In general, the objective
a doubling of facilities
within the next five years.
seems

to be

*

This

growth has been financed

through

private

placement

of

senior debt and

preferred shares,
retained earnings, depreciation ac¬
and

the

sale

of

holders

have

The

been

last

made

issue

ratio

of

three

one

offering

current

ber of

time.

is

market

share

The

success

attested
of

for

by

bid

18

-

of

the
18 %

asked. The shares in recent months
have been quoted at the 18 V2 - 19

the

on

It

paid

$0.80

1954

and

which

ranged

in

ended

Sept.

stock earned

$0.98

the

to

issuance

large

expansion

and

conversion

manual

operation,

it

of

1955,

money

The

normal

stock,
should
$1.05 and $1.20
mechanization
more
„

share

per

18

-

18%,, tne

one

gives

leturn

be

can

mented

by

in

this

and

expected to be aug¬

whatever

value

the

rights, in the event that they are
issued, might command. The writer
believes the stock, which has a
limited market, is an interesting
investment for growth. It is traded
in the Over-the-Counter Market.

Trading Market

CANADIAN

—

DELHI

PETROLEUM, LTD.
Common

WISENER

Stock

AND

COMPANY

LIMITED

73

King St. West —Toronto, Canada

Established

1856

H. Hentz & ,Co.
New

Members

York

American

-

■J

New

Stock

Chicago

Orleans
and

Exchange

Exchange,

Board

.

Exchange

Cotton

Commodity,
New

Exchange

Stock

York

of

Cotton

other

N. Y. Cotton

Inc.
Trade

Exchange

exchanges

Exchange Bldg.

NEW YORK 4, N. Y.
Chicago

Detroit

•

Miami Beach
•

Pittsburgh

•

Coral Gables

»

Hollywood, Fla.

KENDALL H. LUTES

Beverly Hills, Cal.

Geneva, Switzerland

Research Department
A. C.

Members New

1

Amsterdam, Holland

,

Mlyn & Co., Chicago, 111.
York Stock

Exchange,

Midwest Stock Exchange and
/

American Stock Exchange '

H0\)«

Marritt-Chapm^n & Scott Corporation
(Common Stock; 4'A% Cony. Debs.)
•;

I regard the common shares

Merritt-Chapman
poration

growth

&

of

Cor¬

S:ott

having
appeal
and

substantial

as '

at

current

they

levels

o'fer

an

ceptional
yield of bet¬

e x

ter

than 8%.

The

41/2%

Convertible

the

D ebentures

due

1975 offer

similar

a

of
Kendall

H.

Lutes

&

senicr

on

7

14-Year

Performance

of

35 Industrial Stocks
FOLDER ON BEQUEST

and

reasonable in-

Continued

OVER-THE-COUNTER

INDUSTRIAL STOCK INDEX

feature

position

Scott

N. Q. B.

for

the

a

c o m e.

ritt-Chapman

at¬

investor

added

dial.

rate

of
$0.80

of

return of 4.26%

a

regular intervals

increase

Bankers

Maintained in

the

as

with

thing,

Investment

r

dividend

At the end of 1954, 59.1% of the

For

&

Broadway, N.T. 8 GOrtlandt 7-5680

Firm

becomes

program

for

Conversion of the balance within
five years is the
objective and
should result of course in better
and
more
profitable operations.

111

1897

Office Tokyo—70 Branches

Brokers

fully effective.

exchanges to
reasonably

were

Established

Home

At the current market price

is

service

Yamaichi

Securities Co., Ltd.

between

average

traction

in

write

or

earning

the

telephones

knowledge

become effective¬

can

utilized.

will

at

Call

the

equity resulting from the sale of
shares
during the spring.
Such
declines always occur
until the

certain that this policy of
offering
additional shares to shareholders

continue

with

appeal

vision—

dividends

outstanding dur¬
period,
reflecting
of
the substantial dilution in

addi¬

expenditures

investors

with

the average

on

As the company has

projected

remaining

of

unusual

investors

of Japanese potential.

num¬

the;

course,

incorporation have pre-emptive

dial

in

30,

Shareholders, under the articles
rights

to

ended Dec.

market

tional shares.

have

may

issued- rights
price while in
existence between $0.53 and $1.00
per share.! For the 12 month pe¬

level.

of

SECURITIES

shares outstanding at that

during

share in

per

new

held.

since

offered

was

April 8, 1955, at $13

this

maximum

additional

Eight separate offerings to share¬

the

year

1954,

stock to its shareholders.

common

1945.

share for the

31,

■■

.

branch offices

our

JAPANESE

repeat¬

of the shares, even giving
effect to future sales of additional

among

.

to

power

preferred stock cf the company is
held by The Travelers Insurance
Co.

wires

The common stock earned $1.07

ly

of

Mutual

Mobile, Ala.
Direct

utilities.

and

per

new

Co., The Met¬

Insurance

and

NY 1-1557

Orleans, La. - Birmingham, Ala.

opera-*

edly declared in its rate decisions

ing

financing in 1954 amount¬

$1,849,750.

New

number of shares

$1,433,676
rv;

-

Exchange
Exchange

S, N. Y.

regulatory climate in Flor¬

is

riod

II.

Stock
Stock

:

The

ida

in¬

company

York

HAnover 2-0700

the

on

of the service rendered
and mechanization greatly reduces

in the future.

ing sections of the country.
The general offices of the Flor¬

Exports—Imports—Futures

orders

each

among

tion.

5, N. Y.

1954

had at the end

count

relationship between Bell
the independents is today a

The

99

growth, the
of

end

filled

the

sion which in general has favored
the independents.

LAMBORN & CO., Inc.

the

of

phones serving 165 million people.
One in five of these is operated
.by a company independent of the

and

at

and

more

expansion

&reer\ecmdCon\paT\^

area.

telephones' has

tremendous

to

The

"OVER-THE-COUNTER"

is

quality

Flor¬

industry, cattle rais¬

stitutions

either

PLACEMENT

central

7,642 to 25,462. The
number of long distance toll calls
(a particularly profitable part of
the business) has increased from
837,436 to 2,483,533. Despite this

ed

magic carpet for
young and old, in business, family
f

of
from

better

twice

or

in

tual Life Insurance

as a

telephone

and

number
creased

everyone

I

ACCUMULATION

schedules

-7;;- shares this spring, is somewhat,
The growth of the company has under 5%, so that as far at rate
been exceptional.
In the decade making is concerned, the company
since the end
of
the
war,
the is in excellent position.

period

is

| these independents and they

Exceptional facilities for the

lakes

results

cumstances

S ;ott,
;

thp

as

virtually within the

wants

journey at

Southeastern Telephone Co.

already
1,600,000 per¬
sons though the population imme¬
diately served by the company is
perhaps 75,000. There are a larga

distant places. A telephone
often
will
accomplish the

same

Company

is

econ¬

At the

car.

quicker service to

more

Virginia

our

the telephone

the motor

literally

Products, Inc.

industry

to

reach of every one.

Trading Markets

difficult

not

The

on

low that it is

Bank of

little

a

Suburban living—and Amer¬
moving to the suburbs—is

on

time

is

essential

dependent

as

Air Control

columns

twice within the period.
The reason for
this
excellent

BROADWAY, NEW YORK 5
TEL. REctor

an

over two years ago at about 15 is
currently selling at about 30, hav¬
ing sold as high within recent
months as 33 and having issued
valuable rights to its stockholders

to

Stock

Stock

population

a

exceed

there.

Hourwich

Iskander

phone

Members
York

is

to

writer

time

impressive

As

American

Ocala

believed

example, Continental Tele¬
(formerly Telephone Bond
and Share) recommended by the

of

New

of

Co.
and- others
have
important The rate of return on net plant
operating subsidiaries in central in service of the Florida Tele-,
Florida. Though the area is large¬ phone Corporation has averaged
ly rural and farming in character, about 6%,- being somewhat under
an
increasing number of small this figure at the moment.
The
manufacturing plants producing a rate of return on invested capital,
variety of products are locating reflecting the sale of 1 additional

same

Members

19 Rector St.. Hew York

ing and processing and vegetable that it sets rates at a level calcu¬
processing — are important eco¬ lated not only to be fair to the
nomic mainstays.
Nationally consumer but also to attract the
known corporations such as Min¬ capital necessary for the expan¬
ute Maid, Libby, McNeill & Libby, sion programs undertaken by the
Swift & Company, American Can companies under its supervision.

high degree

Steiner,Rouse&Co

hundred mile radius

a

old—Quoted

Con v.

Lutes, Re¬
Dep;., A. C. Allyn & Co.,
Chicago, ill. (Page 2)

pendents

capital gains.

McDonnell & (b.

4%%
H.

.

Within

The citrus

the prospects

Since 1917

stock;

Utilities

income

Rights & Scrip

(common

Leos.)—Kendall
search

tinuously attracted to the

the

Specialists in

other

Corp.

Scott

&

in the equities
of
the
inde-;

of security of
principal and

FRANCISCO

B ought—S

Merritt-Chapman

The

a

PHILADELPHIA

of

a

ida and living conditions are such
that, new settlers are being con¬

com¬

Louisiana Securities

CPy. (Page 2)

are

number of

bines uniquely

Teletype NY 1-40

—

promising
Investment

ft-

./

more

Alabama &

fields.

1920

Associate Member
American

and

new

for

Week's

hourwich, Partner,
Hourwich, &
Co., New York

independents
operating in Florida. The growth
of the area and the company is
above the average for the country
and for the industry.)
V v
7

distinguished from the

as

Bell

Foreign Securities

Thursday, December 8, 1955

Participants and

Florida. Telephone Corpo~aticn

be, nor
sell the securities discussed.)
to

ephone Company and there

New York

Corporate Bonds

intended

not

are

offer to

ISKANDER IIOURWICH

.

Their Selections

particular security.

a

.

jSKanaer

(The articles contained in this forum

and

This
Forum

.

Mer¬

Corporapage

46

National Quotation Bureau
incorporated

46 Front Street

' New

York4,N.Y.

Number 5488

182

Volume

.

.

The Commercial and Financial Chronicle

.

3

(2415)

INDEX

Evasion!
U. S. Court of

Appeals

taken against oil

NASD's disciplinary action

reverses

royalty dealer. Holds, in the instant circum¬

is

a

in

R.

V.

The Pipes of Pan-Canada—Ira U.

Company (Docket No.
23463) handed down by the United States Court of Ap¬
peals for the Second Circuit is destined to have an all-;
important effect on certain phases of pricing policy by
administrative agencies in the securities field.
On the heels of this decision came the proclamation>

V.

Causes

"NASD News"
■

•

■

-

issue 'of

■

WALL STREET,

of-Inflation—Roger W.Babsori__iJ__-

»

•,

Promising Growth Picture

11

BASIC

Ensley

13
17

*

ATOMICS

T

•

{"

*

I',.'

*

*

*

INC.

*

*

"The

necessity for this interpretation grew out;of a f,
decision of the U. S. Court of Appeals for the Second
Circuit in which the Court upset an NASD expulsion ;
(upheld by the SEC) because it found that the Association
had not previously warned the member in connection with an
examination that 50 % mark-ups on oil royalties vio¬

Evasion! (Editorial)—'

limited

to the

The

or

its

was

Possible Checks
National

around

broker

a

and

dealer

The District Business

Co.

Survey

17

Conduct

City

Bank

Letter"

Members

42

Project in Financial

,

Sections 1 and 4 of Article III of its Rules of Fair
Each sale

was

made at

a

Broadway, New York 4

DIgby 4-4970

Block Office

Direct

District

Teletype: NY 1-4643

wire

to

34

branch

Lake

violation

and

recommended

he

be

and

be

As We

as-

Se

It

(Editorial)

Bank

.

and

Insurance

Cover

Stocks

The Diners'
Dumont

26

sessed the cost of the

proceeding. The full District Busi- ;■
adopted the recommendations of
subcommittee and imposed the penalty of censure

Dealer-Broker Investment Recommendations

Conduct Committee

ness

its trial

and assessed costs.

Of

its

censure

PacificUraniumMinesCo.*

the

NASD

Board

of

From Washington Ahead of

Governors

sociation.

the News—Carlisle Bargeron

Indications of Current Business Activity

Revlon, Inc.
*Circular

10

appealed to the SEC which affirmed the
expel him.

,

1

Funds

in the

being done to pricing policy
alleged light of it, that we are considering.

"

The United States Court of Appeals reversed ailalong the line the penalty imposed upon the dealer
and

mors

than 250

NSTA Notes

45

Singer, Bean

News About Banks and Bankers

18

Observations—A.
Our

Reporter

Our

Reporter's

Wilfred

May

&Mackie,inc.

5

Governments

on

over-the-counter securities

HA 2-0270

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

27

Direct W ires

Report

Philadelphia

45

*

Chicago

to

*

Los Angeles

ordered his re-instatement.
Public

In support

of, and

as a

basis for its decision it pointed

Utility

were

experienced in

buying and selling securities. Neither complained of the
They were not called as witnesses. In reply
to letters from the Secretary of the District Committee,
both wrote letters expressing entire satisfaction with
their dealings.
(2) The NASD "5% policy" was based upon a survey
which did not include instances of sales of oil royalties,
nor had the Association ever circulated among its mem¬
bers any rule or interpretation as to permissible mark-ups

-

Securities

Continued

-

on

page

Now

Prospective

transactions.

Security

specialized in

.

•

Boston

Nashville




•

TELETYPE N. Y. 1-5

•

•

Chicago

Schenectady

•

Glens Falls

Another Toni

Corner.

34

.

and

You—By Wallace Streete

16

Twice

COMMERCIAL

B.

Park

1

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

HERBERT D.
WILLIAM

2-9570

to

Reentered
ary

25,

1942,

SEIBERT, President

Worcester
Other

Chicago

city

news,

Offices:

3,

111.

135

news,

bank

Pan-American

Dominion

of

countries,

Bank

Salle

St.,

(Telephone STate 2-0613);

and

$62.00

office

at

dend

New

$37,750

.

debt

re¬

million
.

.

cash

liabilities.

current

on
outstanding pre¬
paid, permitting divi¬

payments

on

common

stock.

Rates

Note—On
rate

of

made

in

S.
of

per

of

Record

the

New

York

fluctuations

funds.

.

.

.

—

GENERAL

INVESTING CORP.

In

exchange, remittances for for¬
eign subscriptions and advertisements must
be

Earnings in upward trend
expected to triple in 1056,
Send for FREE Report

Monthly,
(Foreign postage extra.)

account

•

year.

Publications

Quotation

$37.00 per year.

the

La

ferred

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

Other

clearings,

etc.).
South

post

Arrears

matter Febru¬

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

Other

Thursday (general news and ad¬
vertising Issue) and every Monday (com¬
plete statistical issue — market quotation
corporation

the

Subscription

9576

Thursday, December 8, 1955

and

at

to

exceeds all
•

York, N. Y., under the Act of March 8,1879.

Every

records,

second-class

as

In 3 years, company
duced from several
dollars

Eng¬

Share

N. Y.

SEIBERT, Editor & Publisher
DANA

C.

Copyright 1955 by William B. Dana
Company

COMPANY, Publishers

Place, New York 7,

E.

•

and

CHRONICLE

DANA

$1.65 Per

4

48

Weekly

Revlon?

Common Stock About

2

Reg. U. S. Patent Office

state
•

.

FINANCIAL

ST., NEW YORK 4, N. Y.

TELEPHONE HAnover 2-4300

43

31

REctor

BROAD

BYMART-TINTAIR INC.

39

Offerings

Washington and You

25

Members New York Stock Exchange

Security

State of Trade and Industry

The

PREFERRED STOCKS

Spencer Trask & Co.

31

Registration

The Security I Like Best

WILLIAM

Albany

15

or
The Market

The

For many years we

in

Salesman's

Published

25

;

Railroad Securities

(1) The two custodiers involved

.

Securities—

-

out, inter alia:'

have

Request.

14

appeal then went to the courts, and it is the de- ;!

cision there made and what is

Request.

on

38

Board's decision to

The

on

IFe maintain trading markets in

Mutual

/

The dealer

19

**Prospectus

penalty
expulsion from membership in the As¬

to

GulfCoastLeaseholds,Inc.*

8

Einzig: "Goods Shortages in Great Britain"

took the matter under review, and increased the
from

Club, Inc.**

Broadcasting

,

motion

own

in

Corpus Christi Refining Co.

.

guilty of the

censured

office

City

Regular Features

practice.y.

50% mark-up percentage.

The Trial Committee found the dealer

.

City Stock Exch.

charges against him alleging sales of oil royalties to
customers at prices which it was claimed violated

two

•

Salt Lake

32

Salt

filed

request

Spokane Stock Exchange

"Monthly

Chase Manhattan Bank Announces
Two-Square

Committee of NxASD

on

J.F.Reilly & Co.,Inc.

Business Investment Boom Cited in First

011

in

member of the NASD.

a

Insurance

of the Court's findings, but

import.

centered

case

securities who

.1.-Vt

Circular

Economy to Attain New High Peak in 1956, According to

description does not begin to do justice

a

case

3

by Arnold Bernhard, Eliot Janeway and A. Wilfred May___ 10

Prudential

so

V

VWhat's Ahead for the Stock Market?"
(Forum participated in

lated the Rules of Fair Practice."
was one

4-6551

'

<

•,

That, indeed,

NEW YORK

Telephone: WHitehall

Bonds—Leroy F. Winterhalter-- 12 :

handled in the Over-the-Counter Market."

foregoing, the December
contains the following:
•!

'•••

and Credit Policy—Richard Youngdahl

Current Problems of Economic
Policy—Grover W.

the

1 *'

*

9

equally subject to the;
Policy previously announced*as are any other securities!
are

us!

to

Obsolete Securities Dept.
99

" !' •*

"

■

,

..

The Banks and Government

opinion of the Board of Governors that**

Explaining

6

7

•

j

cash

no

5

Tape* Reading Today—G. M. Loeb
.

the

Molodovsky

—George B. Wendt

-

STONE

moss.

—unless sold

Why Municipal Bonds Are Desirable Bank Investments

mark-ups are subject;
to the "5% policy" of the Association. In a resolution
re-p 4 Interest Rates
cently adopted by. them,:they said in part: *.

no

An obsolete

4

Meeting the New Phase of the Cold War—Sherman Adams;

Securities Dealers that oil royalty

is

Cobleigh

Outlook for Stock Prices—Nicholas

5

of the Board .of Governors of the National Association of

"It

A ROLLING

Cover

gathers

Klein

transactions in such securities

Cover

National Economic Picture—Robert R. Dockson

demonstrated.
decision

llCHTfUSTfl
AW COMPANY

—N. Leonard Jarvis

applicable to future sales. Fallacy of this interpretation

The

Page

Complexities in the Stock Market Outlook

50% mark-up did not violate NASD rules of fair
practice. Despite decision, NASD persists its "5% philosophy"
stances,

B. S.

Articles and News

80 Wall

St., N. Y. 5

BO 9-1600

4

The Commercial and Financial Chronicle

(2416)

items, Canadians

The

Pipes of Pan-Canada

This, in

Enterprise Economist
A swift

of the present plans to serve, with Canadian

resume

natural

born

the Dominion Government, in as¬

The recent unfolding of defini¬
tive

sociation

pipeline

blueprints in
Canada* has been a many and/ored thing with a diverse interna¬
gas

tional

Lines

law¬

yers, politicos,
producers,

years.

transmission

der

Long

in

the

lurch
been

the

tential)

in 'Canada,

and

cient

volatile

and

At first the

simple.
Leduc

our

oil

fuel.

and

Alberta

in

doing

is

resourceful

Delhi

1947,

the

where

now

second,

let's

switch

line.

This

the

to

is all

West-/

ready for

the digging, with the hitches now
ironed out.
It will be a big

all

giving
there, at last, the big

west

Canada

West

in
U.

S.

they've

for.

Westcoast

Ltd.

has

been

with

and deliver to the inter¬
boundary about 200 mil¬
lion C.F. daily beginning Nov. 1,
1957
for export
use
in Oregon,
Washington and Idaho.
To build the line bringing this

debentures

of Texas),

615,000 shares of
as

unit—$1,000

a

seeking to import gas into the
U. S.
(particularly to serve the
Minnesota
market) at Emerson,

in Westcoast, namely Pa¬
cific Petroleums. Ltd. and Sunray

ation of Interprovincial Pipe Line
and latterly Trans Mountain Pipe

Manitoba.

Upon the success of
Tennessee's
application
(before

be

Line, with which companies and
equities you are doubtless already
familiar.
Original subscribers to
Interprovincial convertible 4s of

the.Federal Power Commission..in

from

rated

were

and

by truck

or

1970 had

in

Local

soon

oil,
tank

car, was

their

wonderful time, seeing
bonds zoom in 18 months

from

par

a

to

300.

past

portant,, the

vital

oil

needs of West Canada

effectively

served.

with the natural

More

im¬

transport

were

But

being

not

so

which West

gas,

Canada is today

producing at the
irate of 135 billion C.F. annually,
with

present

trillion

C.F.

reserves

of

That's

lot

a

18

some

of

it's

increasing daily and common
has long dictated that ways
should be found to get it "to mar¬
ket—particularly when the mar¬
ket
is
not
only
waiting,
but
clamoring.
Well with quite a few blunders,
mostly of a political nature, and
even more delays, it now looks as
though the pipes of Canada will
start to puff gas within the next
years.

releases
the

on

past

The

news

this

subject

month,

been

pally

Oil.

believe .that

this

are

their

plans

the

benefit of pjap

Just

is

At that point, Pacific North¬
Pipeline Corp. will pick up
volatile stuff, and propel it

connection

also

will

tie

into

the

extensive

gas Southern fields of
the San Juan Basin in New Mex¬

ico

in a quite
(1) sell $165

chase

of 20

(3)

sell

Colorado.

and

This

pun

shares

deliver

million

in

of

$47

common

out

for

into

the

U.

virtually
gas pipe

a

Canada

joint (no
will ulti¬

S.;

round

and

complete

Pan-

system running
from Montreal to the Pacific,

at

All

approximately

common

this

highly

out¬

boon

lays

already made by sponsors;
and (4) sell $33 million in addi¬
tional common to the public. In
respect - to
the
public
offering

our

of

not

course

practical,

but

a

only is
golden

for most of Canada, and for
Pacific
Northwest.
It
pre¬

sents,

too,

exciting

new

oppor¬

tunities for investors—both North

South

and

and

October

goods producers.

industries

changed

was

concentrated

New

orders

little

from

of

of

record

the

pipeline

the

in

This increase reflected higher replacement costs as
well as
increase in volume, the report stated. It said about two-thirds
the rise occurred in durable goods industries while
increases
book

values

non-durable goods producers "

among

erally small."

-t

were

Backlogs
;

of unfilled orders also edged up a bit during
The report said at the end of the month
manufacturers'
totaled

October.

,

at

orders

the-end

of

earlier.

$53,300,000,000—$300,000,000

September and

$5,900,000,000 higher

higher

than

than

year

a

V-.h.

■

.

v-"'

It

reported that claims for the state unemployment insure
by 43,800 the past week, bringing the total up to 230,000.
Seasonal employment declines were noted in
construction, lum^
bering, food processing and the apparel industries. States re¬
porting the greatest number cf new claims included
was

ance rose

"

*

>

'•

.

border.

The

equities

t

top melting grade for the first time in history, states "The Iron
nauonai ineiaiworKing weekly.
/
4
"The Iron Age" scrap composite
jumped $2.50! per ton td
$49.50, compared with the previous high of $46.15 in 1951. -Sky-

high

prices for

demand

scrap

for steel

declares

this

were

trade

going into conversion plus unprecedented
largely responsible for the break-through,

weekly.

Meanwhile all bets
of time

that

will

going
a

before steel

up.

while

affect

all

^

off

are

consumers

major

bad
on

-

r

.

steel prices.

get the bad

It's only a matter

news

price boosts

on

products.

The worst will be

before the worst is

over
over

Consumers who have not the
from

on

Base prices and extras are
in 90 days, but it will be
quite
from a steel supply

standpoint.

or the
ingenuity to get steel
including conversion, will be in a
production cutbacks due to steel shortages are

means

other-than-usual sources,
way.

More

the way,

this trade journal adds.

Mills themselves hardly know which
way to turn.

Freight car
backlog alone will reach 150,000 by year's end and mill produc¬
tion is sold out for the first six months of 1956.
The steel companies need more money to finance
expansion.

has

Continued

on

page

Transcontinental, El
Paso
Gas, and Northern Nat¬

Natural
ural

Gas

in

the

U.

S.; and the
Interprovincial
Pipeline in Canada, and you set
the stage for avid enthusiasm fof

The Pennroad

We

new

earlier

sudden

paragraphs.

The

apparently

Bulletin upon request

-

situ'

Vilas & Hickey
Members

T^ew Tor\ Stoc\ Exchange
Midwest

49 Wall

—

•

arise
investor apathy, but
from the difficulty in getting full
allotments on subscriptions. Ev¬
erywhere natural gas has been

piped in, this low cost high effi¬
ciency fuel has ushered in a new
of

era

served.

American Stoc\ Exchange

Stoc\ Exchange

Street, New York 5, N. Y.

Telephone:
HAnover 2-7900




.

'

promotional

the

November 29th, 1955 of

Derek G.
a

and

our

Simpson

Director of this firm

close associate for
many years.

se¬

curities, issued on blueprints and
expectations
have
been
sensa¬
tionally rewarding.
here's

a

salute

to

the

pipes

Teletype:

of Pan-Canada, and the dozens of

NY 1-911

distributing companies, all along
the way, that are bound to bene¬
fit

on

sorrow,

prosperity in the area
Moreover, here's one field

of finance where

So

passing

deep

major

will

not from any
1

with

securities outlined in the

difficulty
/

announce

sensational rise of

the

handsomely.

*7f*v

'•

*' J,iV.

/xfee,

gains, increased dividends, split
in such leaders as Tennessee

Gas,

•

The steel scrap market is
running wild and prices this week
broke through defenses set up by the mills and
skyrocketed to. alltime record highs. Prices in some areas hit
$50 and more on the

ups

.

gen¬

y

.

golden for shareholders. Just
review, for a moment, the market

opportunity

by

previous

index

been

An unusual

en¬

received

to

Oregon and California.

along the U. S. West Coast in a
new, 955 mile, pipeline which, by

the

y

Washington,

hounds).

ever.

the

^

fringing the line to Sumas

only half the total deal, how¬

west

down contra?-seasonally
seasonally, the United States

Pouce

River

$12

Let's talk about the all Canadian

gas

institutions;

(2)

of

Colum¬

million of first mortgage bonds to

$3.72;

phase first,, On Nov. 21, 1955 it
was announced from
Ottawa, that

British

Merritt, B. C. to Sumas, Washing¬
ton
(the foregoing itinerary for

million
of subordinated debentures (pos¬
sibly 5 xk %) with each $1,000 bond
carrying warrants for the pur¬

couraging.

and

September

goods

level

unfilled

intended) facility
mately deliver (1959) over 300
million
C.F.
a
day from Peace

tentative sort of way:

en¬

will

Williams

approval of export to the U. S ).
Here

an

B. C. through Dawson j
Prince George, Quesnel,
Lake,
Kamloops
and '

Creek,

can

course,

Alberta

Coupe,

—

(assuming, of

Co.

their inventories.

earlier.

the

bia all the way down from

Ontario to Toronto and
altogether some 1,565
miles. Only one obstacle remains
in the way — a little matter of

be done

&

up

turned

less than

So, its season¬
tumbled
$400,000,000 from, the previous
$26,700,000,000 for October.
Manufacturing inventories rose $500,000,000 during October
to a book value of
$44,800,000,000 at the end of the month, the
Department reported. This was $1,900,000,000 higher than a year

princi¬
present..'share¬

Eastman, Dillon

business

rose

durable

adjusted

month's

shares

principal underwriter.
This project will transport

kasing,

ment '.-men-

largest

to

rapidly build

new

between September and October to be $700,000,000.

ally

holders

early progress of
Lines Ltd.
With
this
approval, then the
whole picture comes to life. The
projected pipeline (34 inch) will
run. from Princess; Alberta to the
Ontario border, and from Kapus¬
Montreal

common

output for

.:*"'
> ;•'
/" "•
sales, it noted, amounted to $27,900,000,000 dur¬
ing October. This was a $300,000,000 increase over September's
volume and $4,300,000,000 more than October of last
year.
The Department, however, figures the normal seasonal rise

carrying
30
shares of
$1,150, and (4) sale of

3,200,000

the

siderably,

for

stock

Trans-Canada Pipe

press

most

benture

Ltd.

Washington, D. C., on Dec. 18) to
thus
import gas, depends, con¬

have, in

and

Lines,

raising $250 million to finance
the;i enterprise..; Informed invest¬

gas,

sense

two

Pipe

industrial

Manufacturers'

to

the first
to
require
Hence
the
piping.
building and most successful oper¬

markets

up

to

sales

between

among

non-durable

de¬

swiftly satu¬
which had moved

bubbling
quantity.

was

occurred in total

month.

bracketed
common

continued

October and

tirely

broken

offered

be

J

business

to the U. S., Westcoast Trans¬
mission Co. Ltd. financing total¬
be

Business Failures

edged up
during the month, adding that manufacturers received $28,100,000,000 less than September's new business but still topped Oc¬
tober of last year by $4,500,000,000. v
The Department said this seasonally adjusted 3%
drop,in new

permitted, by
Commission, to

Power

ordinated

Clint

reduction

Index

Both manufacturers' inventories and unfilled orders

Co.

national

with

moderate

Price

Auto Production

Department of Commerce currently reports.

waiting

million is in prospect.
down into (1)
$83
million
of
first
mortgage
bonds, (2) $29.5 million in bank
loans, (3) $20.5 million in sub¬

Lines
quite

Industry

users

in

supply

will

and

Manufacturers'

North¬

Western
(representing a
group of Canadian financiers) and
Tennessee
Gas
Transmission,

gas

increasing

ever

as

mar¬

Transmission

,

the nation as a whole in the period ended on Wednesday of last
week, but production remained comfortably above the level of the
corresponding week, a year ago.: Copper was in reduced supply

pro¬

been

now

Federal

and

,

\s=

end

deal for Peace River,

Output
Trade

Commodity Price Index
Food

ing $153 Vz

Canadian

(identified

Murchison

the

Retail

State of Trade

A

Now
bound

It

in lively exis¬

groups:

Oil

by

Production

Electric

Carloadings

gas

tence, Trans-Canada Pipe
Ltd., sponsored
by three

problem had seemed
in

and

miles.

about, there is

Since the opening of the
field

somewhere,

larger, and private enterprise sec¬
tion of the project comes in.
: With
considerable jockeying

only U. S.
yet served with this effi¬

not

to

675

Which

the

Pacific Northwest—the
area

for

it

po¬

in

is

where

of

and

assured of completion.
prudently does not assent
bringing
nothing, from no¬

to

gas

Canada and

(present

fields)

pro-

ducers

West

cover

Ontario

have

bulging
in

will

Kapuskasing,

bor¬

presumably

Steel

The

1957.

bankers,
11 variously
throwing in
either a plan,
an option or a

left

consumers

Manitoba-Ontario

pleted,
of

kets

wrench.

gas

to

East
com¬

officially approved, depends on
quite a few things. First, it is to
cost
$118,000,000,
and
Ontario
wants in only (1) if its share of
the tab will not exceed $3o,U00,000, and (2) if the whole line
(running
west
to
the
Alberta

monkey

reserves

Ltd., for not more than 25
This section, a bridge line

sections

of

gas

anies,

a

Cobleigfa

build a 30rinch
Northern Ontario,
to Trans Canada Pipe

certain

to

Canada till the entire line is

ducers

p

and

U.

of

675 miles and its building, though

com

Ira

Province

would

the

from

the

across

and lease it

assort¬

of

ment

Ontario,
pipeline

with

essence,

Canadian

within 25 years; and further pro¬
visions for delivery of American

East Canada, and the Pacific Northwest.

gas,

Thursday, December 8, 1955

(r

is the plan for
line, with provi¬
sions for purchase by Trans-Can¬
ada Pipe Lines, Ltd. of the govvernment/provinee built section
all

an

..

to be given

are

first cut at the subscriptions.

By IRA U. COBLEIGH

.

Midland Securities
Limited

Corpn.

36

Volume 182

Number 5488

.

.

The
Commercial and Financial Chronicle

.

(2417)

Observations...

does

age

of

Dr.

since

Familiarization with company affairs is today rendered vastly

important than heretofore by the vast increase of the inves¬
the popular media of the mutual fund and the
instalment stock buying device. As a result, there have come on

'

tor population, via

the

•

scene

balance

millions

of

sheets and

stockholders

.

There is no lack of opinion concerning the outlook for the stock

whom

to

income statements

are

as

well as for the key to his attitude
as
a
stockholder, is the basic
principle also to be embraced that the stock¬
holder, no matter how small, should conduct
as

personal

conduct

himself

as

he would

part-owner of

as

a

\~f-

and

se,

this

/

</

ss.ed

[

Instead,

\

the

over

-

valuation

against 34%
high of May, 1946, and 24%
high of March, 1937,
/

additional ele-

?

power

the

^

base for capital values.

The

Using the 12-year moving aver¬

represented

earnings figures,

broaden the

base of

considered;
judgment.
In order to. save

of earning pow¬
and applying the multiplier of
14.8 to reciprocals of each succes¬
sive quarterly deviation of current
earnings from earning power, we
obtain the
curve
of a normal

well as

er,

1, are, of course, those of oiir 50stock average,

a

rp0 compute value, i.e., capital
WOrth, a constant capitalizer was

^

space

as

age as a measure

all the other stock data of Figure

N{cbo!as Moiodov.k*

measurement

and to

^id .a laborious presentation of

v.,

earning

on the chart
by the curve of current earnings,

of

ceptible

its

to

12-months' earnings.

latter are

are sus-

and could

and in

of

age

in-

formation,
which

related

*

basic or normal
leads to that of

The concept of

.

some

of

was

n

Price-Earniiigs Ratios

./commentary -have been of late

to

paper

ments

be invaluable
is doing to im¬
prove its product, how it is meeting competition, its labor rela¬
tions, the impact of government regulation and otner policies, and
the'future.'

widely

bring out

can

now

utilities

under¬

hypothetical or normal pricevalue of all listed common stocks, earnings ratio. To have any func>An average consisting of "blue tional or operational significance,
chips" was selected btecaUse in- the price - earnings ratio must
.vestors' attention and financial serve as a capitalization multi¬
plier. And since current earnings
are
unstable and are subject to
.The line of earning, power on frequent and sometimes drastic
.Figure 1 is a 12-year moving aver- changes, they are unsuitable as a

|

information about

likely affecting his investment

at the

also

proportionate share of the dollar

effort will

-

in

Beyond the earnings data, today's report

host of other matters

j

known

s c u

an

in informing the stockholder what his company

a

well
d i

comparison with
competing companies, is the annual report.
A. Wilfred May
Cognizance of his company's statistical
rlesults in the financial operating area is im¬
portant both for the market valuation of his stock, and for the
arrival at judgments about the quality of the management.
per

at the

the. index

of

p.

facts.

The primary source of

operations

in-

terpretation of
and

pri-

yately-held business.
The Annual Report

1955,

and

but

consistently

amounted to 28%, as

Therefore, there would sentative of the general market,
be no particular point in thrust- And the number of stocks belong¬
ing upon the
ing to each branch of economic
reader another
activity entering the composition

of their status in relation to their management.
In his scrutiny of his company's financial
and

ber,

In this respect, it is repre-

dustrials,
rails.

1947,

valued, stock prices are once again
in
a
position of distinct over¬
valuation. At the high of Septem¬

market.

Greek; and who have only the Vaguest concept

results,

declining
early 1956. Expects such reaction to be reversed
later in the year, with a substantial rise of spending in 1957.•
Calls for a constructive but cautious investment policy.
a

trend in

more

■

Figure 1 reveals that, in terms
our
index, after remaining,

After reviewing various factors affecting the stock market,

Molodovsky concludes that stocks will be in

representing aver¬
of our

normal earning power

stock average.

White, Weld & Co., Members, .New York Stock Exchange

YOU AND YOUR COMPANY*

not,

unduly low for

By NICHOLAS MOLODOVSKY*

By A. WILFRED MAY

The figure of $6 a share
offhand, appear to be

cently.

Outlook for Stock Prices

appliea, f0r each

year,

price-earnings ratio, as shown on
Figure 1. The movements of ac-

to the level

0£ earning;power. This multiplier tual price-earnings ratios are jalso
js
made^ to a was. computed by correlating the -shown on1 the chart. Their posi¬
pubhshe&by the acjuai Price-earnings ratios with tions on the chart, as related to
author in
those of the normal price-earnings
The Analystsr Journal
eacfc year's deviations of current
and. August,
earnings from earning power. For ratios, show the extent of pyer-orunder-valuation of stock prices.
lu
.These studies , outline; the the period shown on Figure 1, the
theoretical
"thinking^
on -wbich the multiplier amounts- to* 14.8. The •. In a different way,- these Jwo
present:material-is based and sub- respiting
line, showing; the level [lines*tell; the same story as do the
mit
Irrespective of charges for postage and management time; Make-up
^e: principles ^evolved to a of value> has been drawn, on Fig- ; plottiiigs of the Price Orbit; or
searching
appeal, including lavish color, and illustration may be overdone;
histoid verification ut& lr through: * the "quarterly value; and of stock prices* them¬
But it must be realized that glamor, dramatization, simplification;
going baqk to 1871.
.
,
:
ranges.;of the 50.-stockrindex. It is selves/ To this extent, the two
and spoon-feeding of the data to the stockholder, are prompted by
curves Of price-earnings ratios are
V '
; ;
V
i I "
liU'
designated as the Price Orbit. his chronic indifference: Hence; the key to improvement in re¬
repetitious/. They
are
useful,
1'.';
./• ."i;'.: Value
•
It
is
clear
.that,
:
under
the
nevertheless, - because*. they show
porting lies in arousing the shareholder- to the fulfillment of his
i;V
'V ,;
method used, the, level of value
the actual levels of the ratios and
responsibilities, as business owner*. < ; *
- .
/ - i :
The simplest method of * estidepends on the respective sizes of
their relation to the; levels at
mating
orjrojecting
stock
values
^
factors: those of the constant which they* should standras capi¬
;
What to Look For
is
through the capitalization- of
capjtalizer and of earning power,
talization
multipliers. •
:
Both the fully-detailed as Well, as the short-form versions of
corporate, earning powerThis
IL.
,y

,,

:

statistical techniques and compu-

We assume that the wealth of data

provided by the securities
incomprehensible, and often unavailable,
to the average public shareholder. So we are faced with some
tendencies to overelaborate-the document, and to concentrate on
the public, relations phases.
Ornateness and extravagance with
this medium may be going too far. A recent survey showed: that a
good proportion of these documents costs around a dollar apiece,
'

statutes and the SEG

reference

tations,

-

series

are

,

of articles
.

*

"

-

.

*

-

..

•,

.

•

,

•

.

.

..

...

.

,

-

....

method

paid to changes/ indicating progress and growth, over a goodly
intervening period, say ten years. Some companies go;much fur¬
ther back; Bethlehem Steel for 50 years.
:
Take

a

look at the dollar sales volume, coupling the absolute-

figure with the past annual trend, and watching out for increase
that may be due to price inflation rather than unit increase. *In
this item particularly should comparison with other companies be
For

companies making a variety of different products, fur¬
breakdown of sales covering these products is advisable.
Sometimes jointly with the sales figures, often with the pie illus¬
tration techniques, there is specified the distribution of the aver¬
age dollar of income allotted to salaries, wages and other employe
benefits, materials and services, taxes, depreciation; and finally
nishing

a

the net income divided between cash dividends and the undistrib¬
uted

•

that

portion retained in the business.

also

is:

most

in

i

Importance of Depreciation
few

words

about

the

important

Whereas it is impossible to measure

item

*'

of

the actual deterioration' of

Tf? i *1 A"-?
io»n?r

capitalized corporate earning
has been, in fact, for the

period of available histor-

data—i.

e.

for

almost

cen-

a

the operational value of
investors
and the orbit Of the
fluctuations of stocks.
tury

—

War

stihn
ithvpat
^tnod

it

of the First World War, it stood
at 10,°*
As to the level of earning pow-

it may be observed on Figure
Stock prices, shown 6n Figure 1 I that, based on a 12-year movin the form of quarterly ranges ing average of current earnings, it
since 1937, are depicted by an now amounts to a little under $6
average
of 50 quality equities, per share of our index. Current
This index contains not only in- earnings have
significantly ex.

*°^n,s exPress®d
in th,f ar!'de fljjj*
own, and are not necessarily

the authors

*

-

depreciation.

~

*

_

A

~

^

,

power

entire
ical

made.

.

keeping
- capitalizer, of14,0; repp?-;
Thus, if is apparent from Figure
with economic theory and* the de- seilts a multifdieR .that is^by mo I that it was- normal for pricecisibns of the courts in cases of meahs low..
For - the turbulent earnings ratios to be relatively
valuation of-commercial property,
high in 1945 and to be quite low
gnomic
'And it can be shown statistically
in 1948 and 1950. The actual price/
inrm

the 'data should be carefully read and scrutinized; with attention-

those

of White,

Weld & Co.

;

.

r

er,

ceeded this level in only a few
quarters of booming business in

1950-1951,

and

Bgaill

Qllitc

earnings ratios were true to the
It was only in over¬

normal trend;

stepping it that they created con¬
ditions out of line with value.

Figure 1 also shows that While
price - earnings
ratios
at a historically relatively

current

stand

they are, in reality, too
high with respect to their normal
position as capitalization multi¬
pliers.
low level,

Another

reason

for

Continued

TG-

on

a

a single 12-month period; accepted accounting prac¬
tice determines the depreciation charge by spreading the cost of

plant during

Continued
-

on

page

That We

a series summarizing lec¬
"Your Investment Problems
Today," at the New School for Social Research.

by

the author in the

May Better Serve Our Clients

16

This is-the seventh instalment in

tures

WE ARE PLEASED TO ANNOUNCE THAT WE

course,

HAVE BEEN

ELECTED TO MEMBERSHIP IN THE
MIDWEST STOCK EXCHANGE" *

WE ARE

PLEASED TO

THE

ANNOUNCE

APPOlNTME^bF^1"

ROCKWELL-GOULD CO., INC.

RI CHARD-AfiW ARKEY

103-104 Robinson Building

•

AS SYNDICATE MANAGER-

;

'

/
AND

/

Elmira, N. Y.

PETROLEUM SPECIALIST

;

.

V

Telephone 2-1611

"•.s'K

F; H. Crerie &
:

19

Co., Inc.
We

RECTORS STREET
.

NEW YORK 6,

*

Tel.— BOwlingGreen

direct

9-5944

N. Y.

wire,to crerie 8t company,




"

Bell Tjele.-?NY

Specialize in

.

;

houston. texas

'

•

District Representatives in

- r

Ithaca, Corning, Penn Yan,
Mutual Trust Funds

1-4683

>

i

Investment Securities

Waverly, Binghamton, Oneonta,
a

"

studying

price-earnings ratios is that they

Hancock.

page

28

6

»nhiwr?>' *a*w

ii.

WVfcW nJWWlfU VWM

I'ikVM**!

(2418)

The Commercial and Financial Chronicle

the

Meeting the New Phase

body of considerable

The

Waij

Council

is

truly

Assistant, after commenting

and,

in

us

some

and

new

capitalism.

new

Points

out

f

and

should

we

Sees

I

President
recovery.

have

about

say

tinue

the

deals largely with his
This, I presume, is what

you expect

President
a

to

to

has

be

large
For¬

If

this

about

figurative

a

statement, and
not

As

ness,

patho¬

a

logical

the

everyone

through

of

the

of

his

ill¬

onset

might

you

like

doctors

will

his

tell

recovery

that

and

complete. You

In

Sherman

cannot

have
have-

good

of

his

physical

doctors,

condition

in
as

Al¬

pectancy," which

as

age

than

any

you

are

of his age whom
they ever
he did suffer an injury. That
injury was caused by the stress

the

security

of

actions

his

well
For
on

This

explains

a

lot

of

principal

and

he

elected.

was

mentally,

it

is

the

honor

of
of

Funda¬

Adams

why

to

1955.

best

were

of

is¬

recollec¬

most
of

it.

been

this

on

my

the

zealots

of

have

record

at

in

the

about the

good

vertising

Council

good

goal

active

any

stead.

nation.

or¬

Your

deeds of the Ad¬
stood

What

I

me

have

the

truth.

The

in

since

Council,

the

course,

is

anism.

It

but it has

not
a

of

indispensable mech¬

an

only

heart,

has

an

are

a

of

head,

attribute of

are

A

variety of

devised

...

of

serv¬

seeking

op¬

portunities to invest their funds in
established Canadian
companies with
growth potential.
Our facilities include

wire

cities

service
of

Boston

to

have

ways

offices

Canada

and

in
to

Corporation, New

principal
The

First

York.

Inquiries invited

should be. No wise

responsible

or

counsellor would divest the Office
of
the demands upon it
which

determine

the

principal

Notwithstanding,
there

have

been

policy.

the

over

added

years

duties

East

in

are

the nature of

duties

otherwise
delegated, and which
properly can and should be dis¬
charged by others. It is in this

field

that

thorough

attention

is

being given toward the dis¬
posing of irrelevancies.
now

This by no means
the needs of the

management

wholly meets

the

carry

the

of

not

of

perfect

more

Office.

physical competence of

The

man

to

burden

is

a

Presidential

determined
times

by the number
day he must sign his

a

Rather

name.

lies

it

and

in

the

judgment of

his

more

VANCOUVER




CALGARY

SHERBROOKE

will become of your

Eisenhower's

NEW

YORK

QUEBEC

and

pose,

you

can

that

whose

of

be

economic

the

was

blind

to

The

systems fur¬

recent

gains

consumer

Malenkov

not

reduction in

the

was

harassed

promised by

Government.

It

the betterment of the

to

sumers

that

political

ambition

their

is

con¬

might

and

committed.

are

The

largest
peacetime military
budget in Soviet history brings
only increasing privation to the
individual Soviet and to the satel¬

lite citizen.

this

weapons

like

Germany. You

different

a

climate,

Egyptian and

his

trusts.

burden

The
the

magni¬

President

in great measure
determines, him¬
self when he makes his

appoint¬
head of a

The

do

the

without
lean

work

set

out

continually
the

upon

needing

Chief
his

measures
as

agency
for him

stature

instance, you would not be
particular whether your gov¬

too

sold

ernment

change

for

it

for

in

day he

the

.

metered

by

how

the opposite can be the
The

management

dential
most

Office

the

the

best

choice?

probably

task

ganization

is

half

the

kind
or¬

battle.

It

inducements

if

Syria, Afghanistan
We

are

and

We

all

of

dimensions

the

Office

of

cf

the

time

of

is

yes,
no

and

need

to

is

over¬

decisions,

signatures.
divest

it.

That
Now

topic.

is
I

I

powers

where
come

the

approach

misgivings.

reposing in

they belong.
to

my

it

assigned

with

all

some

one-third the value of
and equipment

by

in

nation.

the
a

everybody

Almost

savings account, or life in¬

surance, or belongs to a pension
plan. More and more earnings of
individual are being invested

sensitive

industry.

political

and

who

now

on

page

27

the

under¬

doing

are

stability
among all na¬

desire

are

invested in the seeuri-

Continued

Leicester-Veimont
BOND OFFERING

economic

self-reliance

and

tions

being

are

Employees

of

to

which
we

in

this

negotiation,

are

in

freedom

and

self-government.

John Burnett, Superintendent of

Schools,

Pittsford,

Vermont,

will

receive sealed bids until 3:00 P.M.
on December 20th, next,
purchase of $65,000 gen¬
obligation school construc¬

(E.S.T.)
A

New

Let
that

it

of

Cold

War

really is. Here we have
phase of the Communist

new

ference

Let
are

be

us

that

sure

we

clear about the dif¬

between

the

in each

proffer, and what
the

the

be sure, we Americans,
understand all this for

us
we

what
a

Phase

we

blandish¬
Soviet

new

hold out for

phase

it

lias

As

not

as

changed. It is as
sinister, as deceptive
been.

ever

an

How

aftermath
the

that

we

unexpected

there

are

has

the

of

notion

and

do

bonds, dated Jan. 2nd,

1956.

interest

payable

at

the

First

Brandon National

Bank, Brandon,
Legality < approved by
Charles H. Brown, Brandon, Vt.
Vermont.

involved in

been

conduct

crisis.

Geneva

took

a

central

of

every

stated

schedule of

new

so.

If

INVITED
Looking for

purpose

we

phase of
has been

objectives.
attainable

MANUSCRIPTS

hold

some

Not

BOOK

we

foreign affairs, it
carrying out relentless\y

clearly
a

tion

$3,500.00 due Jan. 2nd, 1957/66
inclusive; $3,000.00 due Jan., 2nd,
1967/76 inclusive.
Principal and

enter, it is true, a new
the cold war but the

is

somehow

the

eral

the

We

of

conflict

in

for

hope and the goal of the free

world.

of

There

without

are

Ceylon.

meet it?

burden

President.

ceeds

our
best, in company with our
allies, to promote the unification
of
Germany
and
help
develop

as

the

you

or

aware

propaganda

conduct

decides

and

plant

Consumer

equipment in the possession of
cur people, in homes, automobiles
and durable household goods, ex¬

other

ominous,

that

interesting

becoming stockholders. The funds
of labor unions, in many cases,

is how the Presidential
appointees

themselves

are

opportunities now being of¬
fered, loans for a steel mill if you
are
in
India, various trade and

ourselves

the

its

of

There

the

of

Economic

of
an

more

ments offered

Success in its initial

me

the

a

Presi¬

Council

gave

statistic.

Chairman

the

day

Advisers

has

you

is

capital

the

oi

your
cotton, and cotton is your
bread. Wherever you are, are you
so sure now that the West offers

offensive.

Often

Ownership

rapidly moving into the hands of
more
and more Americans. The

all industrial plant

is

case.

of

is

difficult

times

many

President.

ex¬

Czechoslo¬

about

come

Americans Are '

vakia. The Americans didn't want

and

Administration

the

sees

inj

you

from

arms

cotton,

grow

to

Sometimes, from what I read, it
that the importance of a

man

you

an

for

Executive

public servant.

a

if

are

is

Capitalists

other

And

their

and More

More

President's

In

have

should

dream

un¬

ask?

you

It

through an evolution of the very
system he so deeply reviled.

it,

work

of

if

destruction

Americans.

more

ironic that this which was Marx's

want the West to prevail. But will

at

dis¬

pur¬

and

more

some¬

time,

the

means

it.

to

of

back again. You
avoid the war

will

country

a

sincerity
of
hope that

come

he

loosened,
of

that

liberty
property. You believe in

and your

lie

and

it

what

influences

responsibilities

extraordinary

KITCHENER

distrustful

and the agency chiefs to
carry out

Office of its vital function and the

WINNIPEG LONDON
HAMILTON

want

are

You

our

MONTREAL OTTAWA

not

still

way.

course.

There

WEST, TORONTO, CANADA

Berlin

do

you

appointees, his Cabinet, his Staff,

directives,

EMpire 4-0161

East

West. If you reside in the

or

Yet

of

signature, of directive, of decision

burden for the
necessary

50 KING STREET

of

free

a

we

program

competition.

slight

Soviet

so

or

crash

as

after it.

as

reflect

acter

anybody who can read
language, adult or
whether
his
origins
are

how he

sufficient

Head Office

the

to

were

uncompromising
ideological philosophies. In char¬

whatever

feel

personally to make
major decisions. This is as it

there is.

private teletype

in

been

seems

investment requirements
American investors

Stalinstrasse

the

often

the

ther

the

of

by the Congress and the
literally to require

his usefulness

offers complete facilities for

icing

close

should

conflict

Com¬

citadel for

Constitution

to

Since 1921

Berlin,

These

sea.

a

on

materialistic

library. There it
is—modern, beautiful, free. Baoks,
by
the
thousands,
a
cultural

effec¬

number

ability of a
vitally important Federal

of

from

not

are

Nor

ago.

Goering—a scant half mile

the President

ments.

and Distributors

We

the

from

misconceptions about the
characteristics of his work.'

charge

Canadian Investment Securities

weeks

the

on

unchanged,

basis.

yourself.

considerable

a

tude

Underwriters

Berlin

East

—stands

Admin¬

'have

you

few

a

and

explicit before Geneva

shambles of the Reichstag and the
bombed out bunker of Hitler and

other

their

LIMITED

West

munist

part of the

a

Federal

That

competence

McLeod,Youmg,Weir & Company

the

took

stone's throw from

a

land

objectives,

tively assumed the task of public East sector and are apprehended
While we condemn the system
information aspects of the giving
reading a capitalistic newspaper
we
seek to thwart we should be
of blood, for instance, the
preven¬ your conviction carries 25 years
mindful of the increasing benefits
tion
of
forest
fires, the educa¬ under close Communist military
of the
new
capitalism we seek
tional needs of our children, and
supervision. Yet the librarian told
to strengthen and
preserve.
We
the distribution of the public debt me I that he
estimated over 25,000
have
actually
achieved
those
through U. S. Savings Bonds, all eager hungry readers had taken
this has lightened the President's
things Communism empty-handthe. subway this year from East
edly promises. We are literally a
burden.
'
to West Berlin to seek
knowledge
nation of middle class, few of us
otherwise forbidden to them.
Lightening the President's Load
very rich, few of us very poor,
If you live in West
Germany
most
of
us
somewhere
in
the
That brings up another subject.
during these days, you are being
middle of the economic road. The
There has been a good deal said
persuaded, by every conceivable
growth
of
the
middle
income
lately about lightening the Presi¬ means that the Soviet
possesses
dent's load. I read recently that the
population has been enormous.
only remedy to a divided
it was absurd that the President
The abundance of our land, the
Germany. You are being taught
had to sign his name an
leisure to enioy it, and the oppor¬
average that the West cannot provide it.
of 200 times a day. This
tunity to grow intellectually and
is an Look at Geneva, they
say,
you
inaccurate approximation.
culturally are being shared by
There can" see for

which

learned is that what they told me

con¬

Advertising
Council
in
Clarence Francis, Special Con¬
the President, New York
City,

sultant

you

think
I

ganization

reason

Mr.

the

I

now

emissaries, Mr. West and
Mr.
Repplier, were early Commodore
visitors, and the lecture I got

the

Dec.

1,

by

what

time

public

To

tion,

was

address

knows
some

Council

reason

to which his full efforts will
*An

that is, if
like my¬

things.

peace will continue to be the

Dinner,

I,
man

Advertising

post-election

why the President has considered
peace the great goal of his efforts
since

young

the

the

sue.

the lives of American
boys.
In it you find the

and

you
a

Now

affected

country,

fall¬

case

self.

of anxious years. In the
doctors'
view the most anxious
years were

his

for¬

means the Presi¬
dent will probably live to an older

saw,

when

look

ing into that uninspired category
figures called "average life ex¬

of

man

those

can

particular

not

President was, on the

our

statement

so

this

to

it is a fact that
far is thorough

event,

any

ward

thought that
does
physical
reaction.

a

though

Adams

sub¬

a

know

other guy."

some

Your

stantial

to

curious person was
himself. The first

President

anxiety.

you

curious

condition

the

I saw him after he was
ill,
said, "If the doctors here didn't
tell me differently, I would think
this
heart
attack
belonged
to

of great

you

he

he

few

a

yourself

real

Therefore, they

business.

And

time

he

passed

years

the

that the most

one.

knows,

found

you

President at

Government.

Conant

Thursday, December 8, 1955

.

.

on

Berlin.

Brandenburg Gate separating

istration, in short, the President's child,

sure,
remains.

heart.
is

dedicated.

responsibility

the

part

business

a

President, and thereafter, I
as long as his strength

am

very

tunately,

be

of

of

measure

the

on

will continue to devote himself to
this goal as long as he continues

to talk about. The

me

to

large

a

until

saw

free

The programs you have adopted
those whose success impos'es

conflict between military demands and demand for tax reduction.
What

the

country.

our

to

the

Here, hardly

are

Americans.

more

being of

Propaganda

went

Ambassador
see

never

common

and well

ownership of capital is rapidly

more

you

your

understanding
of
urgencies of substantial
importance to the peace, security,

seek to strengthen and
preserve the increasing benefits of the

moving into the hands of

For

of

I

great library John
McCloy, formerly High Commis¬
sioner, dreamed of, and which he

in¬

couple of
it means

a

Communist

Summer

to

me

national

unexpected crisis

defense against communistic propaganda,

as a

words.

use

for

from illness and the increasing burdens on the Chief
Executive, discusses the new phase of the Cold War which has
developed since the Geneva Conference. Denies the failure of
recovery

the Conference involved

fuzzy

to

There

public

the public

than

more

or¬

extraordinary
talents
and
facilities for public
enlightenment—to fulfill the need

the President's

on

is

the

Assistant to the President of the United States

Presidential

terest

an

the

to

interest, and here

By SHERMAN ADAMS*

Offset
This

ganization devoted

Of the Cold

signifi¬

these days.

cance

.

Ours

pubU'her?

L^arn how
and dis¬
have done

promote
as we

for hundreds of others.

on

is

business

and

/11 subjects

financial

New authors welcomed.

strength,

warning and communication lines

a

Dublish.

considered. Especially seeking books

of

air
squadrons,, long range mis¬
siles, strategically located bases,
evolving
new
atomic
weapons,

can

tribute your book,

for

booklet

CN.

It's

topics.

W.ite today
free.

Vantage Press, Inc., 120 W, 31 St., N. Y.
In

Calif.: 6253 Hollywood Blvd.,Hollywood 28

In Wash., D. C.: 1010 Vermont

Ave., N. W.

Volume

Number 5488 7V

182

The Commercial and Financial Chronicle

.

the ^County

Why Municipal Bonds Are

noiS.

ice

classifies

nature of

.-t

distribution of

states

ship of State and municipal indebtedness, and reviews advan¬
tages of municipal bonds

investments for bank portfolios.

as

Preliminary to this discussion
"Municipal Bonds," it might be
well to clarify the subject by de¬
fining it for a better understat¬
ing of the term. Therefore, "Mu¬
nicipal Bonds," or "Municipals,"

taxed.

tion

bond

limited

The

over-all

such

that

im¬

as

which those bonds

large initial expenditures required
for

them

tion

necessitates

the

of

costs

capitaliza¬

complished
namely,

that

by

immediate

well

rate

maintaining

as

at

the

most

one

tered

is

the

bond.

It

is

faith

from

cf

the

valoreum

of

the

real and

real

the

upon

value

other words,
rect

It

eral taxes.
*A

also

of

talk

are

the

payable

.

Nov.

1955.

29,

municipals.
000,000

In

both

cor¬

it

taxes

aren't

always necessarily derived

since the initial block

from

gasoline

in

be

may

tax

allocated

obtained

from

receipts, but

from

revenues

water, transporta¬

July, 1951.

of

those

was

issues,

it

they

the end of this year.

.

.

prohibited

them,

from

although

bonds may be

folio,

,:<

The newest category of munici¬

pal securities making its
known

is

ance

the

as

appear¬

"Housing

Authority" bond.
The

local

The

substantial

national
the

growth

of

to

in

amounts,*. when

coupled

economy,

stringent restrictions

with

govern¬

ing the creation of municipal in-

housing

authorities

debtedness, has brought into

created by statutes in the various

prominence another class'of pub¬

states

lic financing commonly designated

their

empowered

are

bonds.

own

have

ties

no

taxing

issue

to

Those

authori¬

powers

as

"Revenue

as

nue

Bonds."

bond is not

a

The

new

method of

their income is only derived from

financing public works.

thh

recent

housing

projects.

Under

au¬

years

has

it

Reve¬

Only in

reached

1937,

tration)
with
to

amended, the Federal

as

(Public Housing Adminis¬

the

local

provide

with

Local

any

and

security.

illustration,

County

are

limited

contract

housing authority

the

monies,

together

available funds

Authority,

principal

a

and

to

meet

the

of

annual

interest payments.

These' contracts

pledged

are

as

security for the bonds, and further

that

Revenue

bonds

from

specific
are

the

facility

issued.

that is
the

particular

are

No

for

Almost

which

road

a

they
to¬

projects, toll bridges, transit

facilities,

waterworks

in

gentlemen

This

is not

announcement

introduced

has

our

own

heretofore

Act

banks

Revenue

bond

trading.'

permit

to

to

participate

underwriting

benefits

to

the

states

interest rates

creating
them.

As

pected to

those bonds

on

the

amendment

come

up

direct

general

on

page

December 7, 1955

■

is¬

Refunding Mortgage Bonds, 3H% Series K,
due December 1, 1985

:

,

County, payable from

taxes,

they

are

addition¬

ally secured by the specific pledge
motor

fuel

funds

allocated

to

Office—Home—Xmas

Price 101%
1, 1955

Gift List

$15.00

□ Canada 4x4 Ft

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

□ California 3^x4 Ft.J___„_ 45.00
to

last

lifetime.

a

Amazingly

plastic.
can

Allyn and Company

Bear, Stearns & Co.

Blair & Co.

water¬

!Incorporated

□ New Jersey 2Y2x4 Ft.______ 30.50

Dick & Merle-Smith

□ Wisconsin 3x4 Ft.„/_____i 37.50

Carl M. Loeb, Rhoades & Co.

Equitable Securities Corporation

Ladenburg, Thalmann & Co.

"•fhobl".. S"lf-framed in

proof and
...

They're

A. C.

Ilalsey, Stuart & Co. Inc.

Incorporated

vinyl plastic base and

a

-The First Boston-Corporation

45.00

b;

light

hung with

a

in

weight

few nails.

L. F. Rothschild & Co.

Wertheim & Co.

They're educational, informative and
decorative.

INSURE

ORDER

TODAY

CHRISTMAS

American Securities

TO

DELIVERY.

Write quantity desired in
1

DUN

space,

send entire
&

BRADSTREET'S

99 Church

ad

clip to Letterhead

or

Baxter, Williams & Co.

Hayden, Stone & Co.

/

F. S. Smithers & Co.

INTERNATIONAL

MARKETS

William Blair &

Company

Central Republic Company

"

'

Bache & Co.

Ball, Burge & Kraus

"

"

Francis I. duPont & Co.

(Incorporated)

Street, New York 8, N. Y., Dept. N7.

NAME

Reynolds & Co.

to

New York Ilanseatic
YOUR

Corporation

Corporation

Shearson, Hammill & Co.

Stroud &

Company

Incorporated

"

A. E. Ames & Co.

Gregory & Sons

McLeod, Young, Weir, Incorporated

Incorporated
ADDRESS

All

prices quoted

CITY
are

f.o.b.

Philadelphia

cludes parcel post charges and




ZONE

STATE

except the world map which inhandsome leatherette container.

is mailed in

Auchincloss, Parker & Redpath

Wm. E. Pollock & Co., Inc.

is

for
ex¬

for considera-

Continued

Consolidated Edison Company
of New York, Inc.

obliga¬

and

market

broader

a

NEW ISSUE :

First and

their

and

political subdivisions by lowering

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

$70,000,000

that

of

Passage

While

purposes.

of

amendment

an

Banking

an

The

are

Bricker

Senator

amendment will bring substantial

other

and

satisfactory by

you

that

commercial

is familiar with various toll

day

doubt,

the

to

de¬

everyone

considered

gress,

secured sole¬

of

history of earnings

a

Ohio, at the last session of:Con¬

and

operation

the

unless

supervisory authorities.

aware

class

or revenues

usually

approvals

forthcoming

project has

the
now

Such

aren't

credit.

ly by the income
rived

ities.

(either

taxes

additional

as

into

enters

to

of. municipal

approved by the Banking Author¬

□ United States 5l/2x3% Ft.__ 45.00

on

in

purchased for port¬

limited

Molded—Flexible—Colorful—3 Dimensioned

plastic coateti, these maps are made

of

revenue

pay¬

limitation)

□ The WorlJ 3x2 Ft._

Printed

both

dealing

certain

limit.

specific pledge of other

of

our

Flus accrued interest from December

MAPS

be adequate to cover

Banking Act, national banks

are

500,000 low-rent hous¬

ing units will have been built by

-

for

revenues

purpose,

Under the present provisions

the

esti¬

operations.

However, if the

soundly conceived

debt service and operations.

offered

tion,. electric, gas plant, and other

ascer¬

required

legal

general

tions of the

of

For Your

should

sold

is

is

essential

an

$2,000,-

been

be regarded

general obli¬
gations, and, likewise there are
no
taxing powers pledged as se¬

project

From the proceeds

bond

mated that

of general obliga¬

Superhighway

gen¬

under

have

cannot in any manner
in the same light as

im¬

is

sued several millions of bonds fdr

is the type of mu-

Just

them

i

aspects

indebt¬

bonded

without

or

way

Cook

di¬

of

type

7

not only ample but

the

from

revenues

By

by Mr. Wendt at the Confer¬
Correspondents of the First
of Chicago, Chicago, 1.1.,

Bank

for

municipal bond is also

carries the

Bank

of

National

within

with

issuing

from

the
are

A third class

(or

property.

those bonds

obligations

municipality

ence

of

funds

Consequently,

issuing

tax based

a

the

ma¬

or

that

personal property).

levied must

be

can

them

payable

An ad valorem tax is

that

pay

property

assessed valuation.

general obligation bonds to

amount, against all

taxable

be levied not to exceed 75c

outstanding

able

or

all

that

provides

the $100 of

be levied, without limitation
rate

the

Constitution

tion

to

of

attached

tain

taxes

obligations

variety.
The
that may be pledged

funds

that

should
kept in mind: first, such bonds
important

curity for them.

regarded among the highest grade

of

full-

the

the

to

other

portant in considering limited tax

obligation

by

of

resorted

agency

edness.

encoun¬

housing

prominence and importance

which

as

both

general

secured

subdivision,

ad

may

be

to

credit

and

political

apt

local

thority of the Public Housing Act

any

Among the types of municipals
the

by law is an
i.e., the limit

operating purposes and
principal and interest charges on

tax

the

the Public Housing

to operations as well as
to debt charges.
For example, in
the
State
of Illinois,
t"e Stat°

porate

level.

non-burdensome

a

full-faith and credit
the amount of taxes

limitation,

terialize

the funds to contruct the projects,
as

repayment. While

charges is restricted. The tax

rate

procedure,

to

by

"double-barrelled"

are

Furthermore, cut cf the maximum

realization of

tributions

applies

on

period of
A two-fold objective is ac¬

also

may

be,levied to service the

can

may

by the issuance

of bonds payable over a
years.

that

county bonds issued s":all be fullfaith and credit instruments, nayable from ad valorem taxes which

issued. The

are

taxes which

limitation prescribed

highways,
schools, housing, sanitation, and
many
other essential needs are
some of the foremost purposes for
provements

a

men¬

i3 payable

amount

be levied for its

it, too, is
obligation^

just

type

that it

the

in

debt

public

the

from ad valorem

(a) General obligation bonds ".
(b) Housing authority bonds •;
(c) Revenue bonds
for

is

property

quite common today is
to

tioned, except

be classified into three

Two

' be

to the payment of the annual con¬

authority

which

„

identical

principal categories:

demands

the

against

Another form cf general obliga¬

Generally speaking, "Municipal
can

lien

first

a

as it will be employed in these re¬
marks, includes that group of pub¬
lic securities issued by our States,
Counties, Municipalities and other
political subdivisions.

Bonds"

because of the fact that it

also

of

.

niciprl bond most in demand, not
only because of its quality, but

of

have

issuance

owner¬

pay

ventures

of bond has financed.

security.
h Administration, the Housing
subdivisions in other* Authority bonds have come to be

Political
-

public

"double-barrelled"

a

Describes briefly the

Gives data regarding

to

them.' In the
trade,
that
particular
class
of
municipal bond is referred to as

municipal bonds h three categories,

(3) Revenue Bonds.

each.

levied

taxes

namely: (1) General Obligation Bonds; (2) Housing Authority Bonds, and

the

the part

on

housing authority.
those bonds, the County, there-1
Because of the solemn pledge
fore, abates the general property j of the faith of the United States

Vice-President, The First National Bank of Chicago

Wendt

than sufficient to serv-l breach of contract
debt charge requirements? the local

more

orl

By GEORGE B. WENDT*

Mr.

by the State cf Illi-' provide that the Federal contri¬
receipts have butions must be made despite any

As motor fuel

been

Desirable Bank Investments

7

(2419)

27

8

The Commercial and Financial Chronicle

(2420)

& Co.; R. S. Dickson &
Company Incorporated; American
Securities
Corporation; ;• Branch a
Banking & Trust Co.; Eldredge-i& 'Z

—
Review — Sutro Bros. & Co., 120
Broadway, New York 5, N. Y. Also available is a review of
Products, Inc.

Pabco

Cprnbelt Insurance Company
209

understood that the

firms

send interested parties

to

mentioned will

La

Salle

Drexel Furniture Co.

Recommendations & Literature
It it

South

Wilder

—

Analysis

Memorandum

—

—

R. S. Dickson &

Building, Charlotte 1, N. C.

the following literature:

General Time Corp.

Memorandum

—

Review—New booklet—Harris, Upham & Co.,
120 Broadway, New York 5, N. Y.
■'

Atomic

Fusion

mentary

Bramhall,

Federal

Missiles—Calvin Bullock,

articles

Street, New York 4, N. Y.
Pennroad Corporation

Depressed
11

Limited, 1 Wall Street, New York

Equities

Stocks—List

seven

First

securities—Good-

For

Stocks—Bulletin—Thomson

Investment—List
&

of

issue

the

&

Market

—

Co.,

Tabulation

Public

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

York

Positive Investment Policy

For

search

De-

Sun

Saxton &

H. Lewis &

Mid

10

which will

per

list of

111

candidates lor tax

ities.

Co.—Memorandum—Talmage

Mr.

&

Perin

the

corporation
since

sors

Harvard
He

Warrants—Bulletin—Dreyfus & Co., 50 Broad¬
Railroad

since

Company

Brochure—Hooker

—

losses; and switch suggestions.

*

Express

co-managed

group

*

Dec.

Company—Analysis—Ira Haupt & Co., Ill

bulletin

list of stocks for

Analysis

Harris

—

Also avail¬

containing two sample portfolios

a

year

and

Basic

Atomics, Inc.—Circular—J.' F.
Broadway, New York 4, N. Y.

7

&

Co.

42

Analysis — Dean Witter & Co
South Spring Street, Los
Angeles 14, Calif.

Investing Corporation,

Charles Pruning
Company, Inc. — Analysis
120 Broadway, New York
5, N. Y.

Corporation

Analysis

—

Reynolds & Co.,

Ernst

&

Broadway, New York 5, N. Y.
York

-

N.

d,

Bulletin

Y.

Also

Marshall Field & Co.

"

Bache

&

available

is

-

.

issue

Forgan

an

1995, inclusive.
submitted

group

100.1016

for

F. H. Cruris Co.
Richard A. Markey has become
associated with F. H. Crerie & Co.

Inc.,

19

Rector

City

as

Syndicate and Petroleum
Specialist.
Mr.

of

bid

a

combination

a

120

Co., 36 Wall Street,
a

memorandum

on

.

The

First

Portland,

interest cost of 2.737%.

nois

The

bonds

prices

2.60%

being reoffered
to
yield from

are

scaled

to

2.7.5%, according to

ma¬

turity.
the bonds is exempt,

on

New

and

Bank

State

York

income

&

venson

of

eral

these

in¬

savings

banks

and

of the Attorney Gen¬

the

bonds

State

will

of

New

York,

constitute

valid

and

legally binding obligations of

the

State

of

full

faith

and

of

be

New

York

credit

of

and

the

pledged for the

the

State

payment

principal and interest.
members

of

the

St.

Louis;

J. C. Bradford

Braun, Bosworth

&

&

Co.;

Co. Incorpo¬

rated; Alex. Brown & Sons;

City
National Bank & Trust Co., Kan¬
sas
City, Mo.; Coffin & Burr In¬

ers

Trust Company; J. P. Morgan

&

Co.

Guaranty

Dick

&

•

Public

markets

in

flora, ltra j^ecmities

385

F. W. Craigie & Co.;
Merle-Smith; Ira Haupt

& Co.;

Hirsch & Co.; A. M. Kidder
& Co.; Wm. E. Pollock & Co., Inc.;
Shearson, Hammill & Co.; G. H.

Member
•

DEPENDABLE MARKETS

©o.t Xttt.

Utility

•

k.

A.

in

2400

new

issues

as

they

appear

N.

Y.

Connecticut Turnpike's
$160 Million Bond

Offering Postponed
Governor Ribicoff of Connecti¬
cut and State Treasurer Ottaviano

announced

Dec.

7 that due

to

the

unfavorable condition of the
tax-exempt bond market at the

very

present time, the sale of $100,000,000 Connecticut Turnpike
bonds,
scheduled

for

postponed

indefinitely.

was

to

13

concurred

Brothers

advisors

Dec.

the

who
state

in

are

has

This

been

de¬

by Leh¬
financial

in this

con¬

nection.

^

ELMIRA, N. Y. — RockwellCo., Inc., Robinson Build¬
ing, announces that they have

Japanese Stocks and Bonds

been elected to

without obligation

Midwest

Security Dealers Association

Trinity Place, New York 6, N. Y.




Co.

Houston, Texas.

Gould

on

NY
74

Inc.

Midwest Excti. Member

Industrial Stocks

Troster, Singer & Co.
2-

Co.

direct wire to Crerie &

a

f

F. H. Crerie
and

has

a

o

years.

Markey

Rockwell-Gould Go.

N.A.S.D.

Material and Consultation

Members:

Cor¬

Natural Gas and
Broker and Dealer

Also

and

Carbon

Co.;

The Boatmen's National Bank of

corporated;
under¬

writing syndicate include—Bank¬

Incorporated;

&

Union

Carbide

number

Jackson & Curtis; Wood, Struthers

Co.; F. S. Smithers & Co.; Dominick &
Dominick; Roosevelt &
Cross Incorporated; Dean Witter

was

poration for

of

the opinion

legal

are

with

Illi¬

trust funds in New York State. In

bonds

for

thereto he

associated

Chicago; Eastman,
Co.;
Paine,
Webber,

Company

for
Her-

old, Inc., Geol¬

Trust

and

S.

ogists. Prior

of

&
Co.; Lee Higginson Corpora¬
tion; Laidlaw & Co.; Robert Winthrop & Co.; Hayden, Stone & Co.;
Clark, Dodge & Co.; Bacon, Ste¬

The

taxes.

John

Lynch,

Bank

Continental

Ore.;

National

Dillon

National

&

Interest

will

Company,

&

Co.;
Merrill
Pierce, Fenner & Beane.

of

Manager

man

dependable

Markey
formerly

National Sales

cision

make

Street, New York

Phelps, Fenn & Co.;
Bank of Chicago;
Sachs &
Co.; Glore,

Goldman,

public

Markey Joins

National

2%s and 2.70s, representing a net

Other

Central Foundry

awarded

was

1985 to

eral

Inc

—

"n*c*a*r\Report—iGeneral

First

of New York

under present laws, from all Fed¬

Reilly

Wall Street, New York
5, N. Y.

The

by

First

vestments

Celotex

cf

was

Freres & Co.;

a

end recovery.

Broadway Hale Stores, Inc.

charge

Company of New York;
Harriman Ripley & Co. Incorpo¬
rated; Smith, Barney & Co.; Halsey,
Stuart & Co. Inc.; Lazard

of $50,000,000
Thruway Author¬
ity bonds, due Jan. 1, and July 1,
The

5, N. Y.

a

in

in 1929.

Vice-President

Trust

New York State

on

*

American Machine & Foundry
Company —
Upham & Co., 120 Broadway, New York
is

a

research.

yield from 2.60% to 2.75%.

underwriting

and Lehman Brothers

at

able

underwriting group co-managed by
City Bank and Lehman Bros, price

issue to

consolidated

A

Broadway, New York 6, N. Y.

HA

been

1952

R. A,

$50,000,660 N. Y. Stale Thruway Bonds Offered
Consolidated

predeces¬
from the

&

Fay, 221 Montgomery Street, San Francisco 4, Calif.

First National

its

or

graduation

Business School

has

utility
Pacific

George L. Perin

has been with

New York 4, N. Y.

way,

Western

new

Control

American

re¬

and

analysis activ¬

Broadway, New York 6, N. Y.

Tri Continental

Comparative figures — G. A.
Co., Inc., 70 Pine Street, New York 5, N. Y.

Products, Inc.—Analysis—First Securities
Corpo¬
ration, 111 Corcoran Street, Durham, N. C.

We

and

conduct

copy—

Co., 63 Wall Street, New York 5, N. Y.
Oil

co¬

ordinate

Post

Techbuilt Homes, Inc.—Bulletin—Aetna Securities
Corporation,

suggestions t,o save you money";
analysis of Milling Companies, Cigarette Manufacturers,

New

Co.,

Airlines, Inc.—Review—$2.00

Continent

National City Bank

632

&

—

New York 5, N, Y. Available in the current
issue of "Market
Pointers" are "Tax Tips—20

80

Western

Christmas—Suggested groupings—in current issue
"Gleanings"—Fiancis i. du Pent & Co., 1 Wall Street,

an

views—Lerner

»

partm'ent

Co., Ill Broadway, New York 6, N. Y.

1956—Brochure—Dean Witter

Stocks For

Air

&

Ray

Co., 45 Montgomery Street, San Francisco 6, Calif.

Public Utility Common Stock.?

a

chure—Kidder, Peabody & Co., 17 Wall Street, New York
5, N. Y. Also available is a memorandum on Massachusetts
Indemnity Insurance Co.
Co.—New

^

In¬
Re-

—

<'

head

new

a

ir

desig¬
as

4, N. Y.

Situation—Review—Chase Manhattan Bank, Petro¬
leum Department, Pine Street corner of
Nassau, New York
15, New York.

of

of

13-year period —
Front Street, New

Petroleum

&

been
nated

vestment

John

Averages and the 35 over-the-counter industrial stocks
in the National Quotation Bureau
Averages, both as to
a

George

search

Over-the-Counter Index—Folder showing an up-to-date com¬
parison between the listed industrial stocks used in the Dow-

and market performance over
National
Quotation Bureau, Inc., 46

Broadway,

Analyical bro¬

Seaboard

Monthly Investment Letter—J. R. Williston & Co., 115 Broad¬
way, New York 6, N. Y.

used

Company of New Hampshire

Cement

Corporation,
New York City,

announces

Office Square, Boston 9, Mass.

Nomura

—

Outlook, and analyses of Mitsui Chemical Industry Co.,
Ltd., Sumitomo Chemical Co., Ltd., Tokyo Gas Co., Ltd.,
and Tokyo Electric Tower Co., Ltd.

yield

Service

Riverside

Securities Co., LtdJ, 61 Broadway, New York
6, N. Y. Also
in the same issue "Nomura's Investors Beacon" are discus¬
sions of Bank Rates, and analysis of Business Results and

Jones

Los

Street,

Corp.

Boston

Portsmouth Steel

Ltd.,

—

Spring

South

First

L.Perin, VicePresident, has

in

of

Japanese-U. S. Taxation Conventions

647

The
100

N. V.

Investment Opportunities in Japan—Circular—Yamaichi Secu¬
rities

Company,

Dept.

At First Boston

—

Corporation—Analysis—New York Hanseatic
Corporation, 120 Broadway, New York 5, N. Y. Also avail¬
able is an analysis of Cleveland Cliffs.

"Weekly Stock Bulletin"—The Nikko
6, 1-chome, Kabuto-cho, Nihonbashi,
Chuo-ku, Tokyo, Japan.
Securities

California

Circular

—

Philips Gloeilampenfabrieken — Analytical brochure —
Smith, Barney & Co., 14 Wall Street, New York 5, N. Y.

McKinnon,

suggestion securities—Bruns,

Japanese

Perin Heads

Vilas & Hickey, 49 Wall

—

that

Co., 52 Wall Street, New York 5, N. Y.

Foreign Investment in
current

—

Angeles 14, Calif.

5, N. Y.

Street, New York 5, N. Y.

Nordeman

the

of

115 Broadway, New York

Common

Wall

Co., 60 Beaver
memoranda on

are

Phaostron Instrument and Electronic Company

Attractive

body & Co.,

Also available

Analysis
Street, New York 5, N. Y.

5, New York.

Currently

.

Square D Co. and Western Union Telegraph Co.

to

Guided

on

Street, Boston 10, Mass.

Northern Pacific Railway—Review—H. Hentz &

30, 1955—Atomic Development Securities Co., Inc., 1033 Thir¬
tieth Street, N. W., Washington 7, D. C.
"\
'
publication to provide informal
guide investors—including in current issue data

-

&

Holiday Coffee Company—Analysis—May & Gannon, Inc., 140

atomic map also available—both contain portfolio as of Sept.

"Compass"—New

& Co., Inc.;
Allen & Com¬
pany; Baker, Watts & Co.; Heller,
Bruce & Co.; Rand & Co.; The
Robinson
Humphrey Company,
Inc.; Schaffer, Necker & Co.; Van
Alstyne, Noel & Co.; Eldridge E.
Quinlan, Inc.; and Winslow, Doug¬
las & McEvoy.

C.

D.

Fallion

The Ohio Company;

Hazeltine Corp.

on

of New York—Bulletin—Laird, Bissell
Meeds, 120 Broadway, New York 5, N. Y.

Confusion—Quarterly report containing com¬
thorium, and uranium oversupply—

thony & Co.;

Auchincloss, Parker &

—

Guaranty Trust Co.

fusion,

on

memorandum

a

and Trust Company; John Nuveen
& Co. (Incorporated); Tucker, An¬

Gruss & Co., 30

—

Redpath, 729 Fifteenth Street, N. W., Washington 5,
Also available is

Atomic Energy

Company; Mercantile-Safe Deposit

Co.,

r

...

—
Analysis
Street, New York 4, N. Y.

Broad

Co/Incorporated; E. F. Huttori &

Street, Chicago 4, 111.

Franco Wyoming Oil Company

be pleased

Cruttenden & Co.,

—

1955

Walker

Copper Range Company

Dealer-Broker Investment

Thursday, December

..

.

1-

376

61

BOwling
Head

Green

Office

9-0186

Tokyo

membership in the

Exchange.

The firm maintains district rep¬

Broadway, New York 6, N. Y.
Tel.:

Stock

DEMPSEY-TEGELER & CO.

resentatives

in

Ithaca, Corning,
Waverly, Binghamton,
Oneonta, and Hancock.
Penn Yan,

Volume

Number 5488

182

.

.

The Commercial and Financial Chronicle

.

The analysis of transactions should

Tape Reading Today
Stock market analyst discusses the nature

and scope of tape
reading, and states that the tape reader, in addition to knowing
everything that can be known about actual stock transactions,
must also take into account anticipated and realized news.
to

help

reach

Stock

_

today.

Two
sev-

enty - five
of
these are the
Paper

slip

hundred

movie31*

^

n

1

the

reading
ence

in

^

reading

tape

pretaticn of

means

inter-

on

Today,

transactions.

Iu specifically
mean forecasting
trend of stocks from under-

the

standing the significance of
past in affecting the future.
The

broker

broker,

floor

a

'

occurs

a

the

be he

specialist

the

has

trader,

knowledge of
it

the

as

floor

the

at

whole he must watch the

a

a

depends
market

on

which

screens

tions at

the transprint transac-

shown

tape

varying time lag, which
on
the activity of the
the
the

at
at

Stock

is able to watch

wise, than

who
even

tape-

market,

the floor

addition

have

a

Exchange
ticker may

the

to

nearer

because

man

to

the

access

to

"flashes" from

room

of

his

they

are

order

although

ticker

he

broker

may

the

which,

usually

a

bit

behind the actual floor price, still

from

?'r 'yer

Is

from my point
of
who places major
stock transactions
in making up his mind whether
and what to buy or sell is a "tape
anyone

reader."
as

than
my

on

look

I

of

sort

a

as

the

be

tape

a

termed

analyst'

if

toe

In

reader might

a

"transactions

title

not

were

•stock

security buyer who has

a

prices
each

once

Once

and

on

his

acts

mo-

eration

I

was

toe

that consid-

oi

dividends

earnings,

aiviaenas,

j3ajance sheets are far afield from

ta

true
mu

reading.
*

The

j

.

true

„

reader

tape

in

a

Every

gave

can

the

hospital

hour

in

the

of

me

a

the

ta'k

by

Bernard M. Baruch

of

the

to

who

he

stock

or

ar)y

was

basic factor in

a

records would

wheiner

aid

to

buy

cies,

in

security that acts "badly"

It

do

pages

scanned

cir-

for all investors of

of

the

,




or

them.

Battle

for

Invest-

I learned how to

make

the profits first.
Then
in
1935, I wrote the basic chapters,

Others have been added from year
to year right up to this vear

leS! I »^?Amyjett as .t0 "why"
Now what about the "pure" 1955. Ten thousand copies have
and f.elt that the dePresTslng
tape reader who considers nothing been sold in the first six months
WaS
tel?P°rary. Note I qualified eise jn reaching his conclusions? of this year. It has at least a half
my statement when I said "hope
feei

that

very,

very

t0 h°ld" tand, 1 d» th'S h?,®*"8!! SUCeeed if they make
?.s 31p,rac ieal ma"®rf.w® a11 £lnd 'ape or chart reading
ll felatlve'y m°re d;ffl.cu"
a transaction than to initiate

few

dozen chapters

can

on

various useful

fetish o£ aSP®Cts °f tape reading. and 1
to the ex- think it is a good book for you
close elusion of other basic factors. I not only because I wrote it but
one.

have

a

because I think it puts tape read-

it done. ..I would not

seen

S°n,ai!
matter P5C^°gIiand
of tax
dating
C11„u

such considerations.
The

6

advise most people to try.
ingbut
in not
its proper place-important
all important.
"Aside from the very few people
other
You

.

WnTtTii
mentally

and

v

investor who watches

tape

t

equipped

requires

time

won't

succeed,

to

the

factors

ar

to

get

ideas £or new in_
be investigated
in

Conclusions

sudden activity of strength

mav

of

tomers

my

book

find

than

much

vou

will

P^iy.£,

J

f

J

g

,.

in

find

in

talk today about "double tops,"

New

York

stock

any

E

3

^b^nS as seeing something stait
•'
Sometimes they have

led io imp0rtant iong pull profitable

positions.

have

led

to

Sometimes

they

blanks.

A Dinner Bell and

an

Tape

or

refreshing skull

to

care

selling commissions the most useful tape reading ideas
ieveis required to wdl automatically float to the top

and

for

a

statistically-minded, six

months

clientele.

amount

of

time

nut
put

the

The

expensive

required

by

the

that

'

f

It is

no

real digression to say

investment

management

pressure

missions.

tainly

is

and °ccur to me. If I have to dig
them out or jot them down and
catalog them, they can not be so

time
investors
also has Paint
vital
nressure
on
increasins

many first

Alarm Bell

therefore

reading

buying
tQ

on

The

increasing

comcorn-

day of the sophis-

not

the

condition

now.

Spreads between bids and offers

If I forget
an
n>aybe it

today

isn

dividend

uses

jTcinP

thi«;

cvstpm

nr

lark

This announcement is not an

ojjer ojsecuritiesjor sale

or a

never—never—for itself.

Continued

on page

solicitation ojan ojjer to buy securities.
December 7, 1955

a

buys a stock because of
good news he is not a tape reader
person

than

more

any

if he considered

other basic statistical
tors.

security fac-

However, if he buys
its

of

to

stock

Columbus and Southern Ohio Electric Company

action—action—cn

then

news

some

a

he

be

truly be

can

acting

250,000 Common Shares

the

on

tape
Now

j

hope

j

have

Par Value $5 per

nQt

jnad_

™ftr0 ts°OTde

Jd

P

1
e SUDJeci,

Ppgat ®f

h

Share

Price $31.75 per

otner aspects

share

The Tape Reader and the Chart
Reader

The

relationship between floor

prices,

prices,

tape

.

,

.

stock

,,

^ t tL 'ame wav'by
that

ana,yze

tape

reader

Copies oj the prospectus may be obtained from such oj the undersigned
{who are among the underwriters named in the prospectus) as may
legally ojjer these securities under applicable securities laws.

tables

.

transactionsy

carries

in

his

those
The

mind

The Ohio Company

Dillon, Read & Co. Inc.

wbat the chart reader writes down

remember.
by the

same

Both

are

motivated

forces

t>

taP® ^ 1 P°salbly can oday-

.

n

ih,

t

H

The First Boston Corporation

Blyth & Co., Inc.
Merrill Lynch, Pierce,

Fenner & Beane

Hemphill, Noyes & Co.

Lazard Freres & Co.

Stone & Webster Securities Corporation

Hornblower & Weeks

investment conclusion, or to trigger an investment investigation,
j said «inyestment»» deliberately

and not

"trading"

or

"speculative."

Paine, Webber, Jackson & Curtis

Reynolds & Co.

W. E. Hutton & Co.

L. F. Rothschild & Co.

Incorporated

Shields &

Company

it

'

y

to

If

nf

I

in-

only

news

lm-

The Keyword Is to "Compare"

to

another. The true

means

t

portant at all.

tn

consider its relation to taoe action
and

studying

.g actjve ?nd strong

announced

it

*

one thlnS

means

reader

tape

,

if

Th

\ rl 1
.f

and
an

crease,

J

v

newS'

on

trnn^rt;nn<5

.

local

York,

more

change member brokers and the practice for this talk. My reason
emphasis placed on six months is I do not believe in such methital
ains b
toda , t
laws 0ds. I buy and sell stocks every
Vidual securities just through such are factors that tend to increase day- 11 seems logical to me that

n__lirQ

"

Mr Loeb made
School of Busi-

City

tape

them —studied

of

most

of

ment Survival."

type.

every

subject

market—"The

private,

opinion is

my

the

books

hundred

You can read my own book on
how to make profits in the stock

essential factor to considei

a very

un-

some

mention

several

reading exclusively. I have

none

in

to

easy
cover

on

chart

unfair, but it is true,

Tape reading in

one

it

is

which

improve.

at least

or

That is very

hope to hold

nor

formance?

As it is, tape reading is a bit
beyond the pale. It is something

oossesspc

success

pleasant

enough of tape reading to really
improve
your
investment
per-

institutioxiai

our

other

and

commonplaces of yesterday,
How do you go about learning

investment

acts "well" according you don't do at all in

tape reading standards
mos|; valuable

not

erally accepted that tape reading

less

juice

orange

less correct in its views,

or

this

buying or
holding
acts

is

or

an

patient dies, no one can tell the
proportionate parts played by nature and the physician. However,
I am sure that if it were gen-

intends

he

in

life, medical, milipolitical science is any

However, analysis, I think

knows

today's narrower markets,
Hence,
pure
tape
reading is
somewhat
rare
along with real
vanilla
beans, freshly squeezed

latest prices.

Co'k-'e
New
New York City, Nov. 17, 1955.

ness

stock

of

even

whether

watching

with

hcipated
and toeaknow
l ed new .
He
needs
about
ex^1! r+?Un^d secuJ\\y investor; can ticated tape reader who was in
^, Jf
..
,he both a dinner bel1 and an alarm and out of the market constantly
pectednews and news as it occurs bell>
v
may come again but that is cer-

New

,

♦OutJine

investor

"badly"
a

is

,

.

at

and

know

profitably

be

can

the tape
exclusively is also rather limited

investment account shows up
badly the owner knows it. If a

If

needs

eVgrythirnge
tkaf ca,._ ba known
&
ina
^ual t^actlonsplUB aneyeryi

What is the value of tape readI told him what to buy and sell.
I. think its value is very
It
more
than paid the
hospital S°od ^ ^ is used along with other
bill, and it was just as much "tape factors to help reach an accurate
broker

little

very

practiced

js profitably practiced.

^he

tary
more

previpractical mat-

a

not

by

be ^ry fundamental and well
many
WOrth ch«king. I have made
reld- ma"y «xhaushve studies of indi-

thTiatter

earnings

of

eration

desk

on

If

f^serin £e|^ ^r^o^aWeictS

Orleans.

*

placed

hour

The

pure

be obvious

term

hopelessly cumbersome.
Thus

i.
decisions,

^

rather

"•nickname"

precise description.

a

opinion,

better

upon

our

a

lb!!

more tactors tnan pure lape reaa
1
*

However,

dependence

is

as

do

I

tnat

employed

How many buy into individsituations that turn sour be-

it?

defined

as

to

influences. The amount

vertently used language which is

Reader?

Tape

a

of

TechnicW anWysis considere

considered

by

Who

tane

Dure

that

one

Portionof

a

occupied

many

the floor member,
Most
peoole think of this class
as the basic type of "tapei reader."

!

is

because

view,

is

his

for

points on the
floor instead of just the single spot
come

attention

fall?

this uncertain

i

brokers he is
brokera he is;
Tape reading an.d tecihmcal

him

York

one's

to

a

like

undoubtedly

are

tape requ res Ume. Conclusions „head and shou]d
„ ,.triangle£>
the vestments to
i® j ® "*"y £ °®fP°r5and "rectangles," to mention a
«1 ed by stock tbroader ways is st"r®,t0 -lallch on !re currently unL!ora We
!ne few, because I. believe in very
straying from the '°
?
pr°!ltab,®
r
ldeavs.'
®
great
V
demand
e
for m
increased in^
few of these ideas.
straying
om t
The meaning of a
new high
vestment reSearch from the cusI have not "researched" or done

n0

time
time.

The person ofi the floor of the

New

few

definition

Mv

longer a pure tape reader
he attempts to find out if

first

stock transaction

a
on

post at which he is standing. However, for the position of the marticker

vl^

nrobablv

*

Kn

New York Stock Exchange,
commission

the

floor of

the

on

Cfnnv

Vrxv.1,

an

degree because there

a

contlnuously watch

forecasting based

an-

transactions

ment he introduces a second fac"lcul: UT !"!iuuubcs 11 fcVvllu. A£,v-"
tor intoi his judgment he is no

g. M. Loeb

To my mind
price

price

factor in

a

would

floor

ta^e j-eaderjs mie^that^only^ PaHJr tosjs^^ matter Jf^per-

my opinion is

tarfe*
tape'

to

transactfons

all
all

are
are

Jane reader

far greater
the comparatively few who

than

con

that

sly

tions

tape
audi-

is'another ^eat
Lks at "charts »

there

rpadprs

Hi

1

simul-

true

„

ticker un-

a

lhere are also those that look

are

con

■

T

if I had

as

as

they

me,

the

on /

ual
fore they can do anything about

departing here from "pure

there

ter

my^

I

taneously.
However,

:

action

tape

the

H-JoHl tintent
HiThe!
■
They

manv

»

.,

.,

current

be.

great.

very
am

Possibly the largest body of tape
readers
^sinS
tlhose that look at the daily stock
table of volume, opening, high,

screen

It
watchE

in

I

-

the

°"^nd

and
and

tVneth-t

be

also

der my eye.

JK|H

thnnlnU ?!

lux

volume

would

Wpr? 'S
hundred

reading

or

the dif-

low
and last m their daily news~ his security transactions. I for
paper.

JaPe

type that tape
readers let

..

00_

3,885

Exchange stock

operation

m

_

,

approximately

are

York

com-

"trader"

a

and

actually

tickers

ket

past

investments

reading to the exclusion of other basic factors.

thousand, three hundred and

or

of

of tape or chart

.

as

capital

as

is

what

investment is

an

reading",
ously because

There

a

of

Believe

of

and, therefore, tape reading to the security investor can be both
a dinner bell and an alarm bell. Warns against making a fetish

New

the
th®

"out" of the market before

tion

known

to

determining future value is either
ignorance or prejudice. The value
of the tape in bringing potential

exact science,

an

"speculator." The final determina-

and

used along with other

Acknowledges investment management is not

same

tance

investment conclusion.

accurate

an

the

confined

ference between the price at which
it is bought and the price at which
it is sold. To ignore the impor-

Members of the New York Stock Exchange

Holds value of tape reading is good, if

wider than they might be, due to

be

monly

By G. M. LOEB*

factors

not an exact science.
The publfshed reports of institutional investors prove that. How many are

not

Partner, E. F. Hutton & Company

9

(2421)

Sweney Cartwright & Co.

22

10

The Commercial and Financial Chronicle

(2422)

steel

follow

to

The Stock Market?"
Differing views

the

a

of

summary
a

Commercial

City

ARNOLD

The

its

Value

stock

market

an

of

We

is

It

breaking

5%

years.

they

at 14

are

times

loss

sold-out

and

the

Summer

of

of

the
bond

low

as

yields

1929,

1.2

1.2

as

only

the

in

Spring

1937, the Summer of 1946 and

row.

guments

that

tionalize

this

overvaluation

the

ones

that

very

rationalize

offered

are

the

ar¬

to

ra¬
are

used

were

to

undervaluation

.prevailing in 1946, 1947 and 1948.
Then
of

it

said

was

that

advanced

The
that

could

be

ciation

infla¬
worn-

than

provided by the depre¬

allowed

Revenue

thermore,

it

later.

get

Thus,

was

the
Fur¬

then

argued

was

bound to

by

Bureau.

that because business

or

was

greater

was

charges

Internal

was

of

reproducing

equipment

were

then

because

tion the cost of
out

thesis

so

good

worse

sooner

1947,

when

in

and
end

will

ously with stock prices often

it

^

fall

if

irwfic-frvrig

common
seem,

thriving

on

sense

this bull
periodic

confidence.

The

of

bull

market

strength.
Confidence

in

Eisenhower

a passing coincidence in the
early stages of our New Era bull

And

the

businessmen

less

confidence

(investors

and

have

in the New Era,

paradoxically and
the harder they will

perversely,
have

chase

to

market

The

the

New

Era

bull

upward.
New

bull

Era

market

is

condition. And

a

it is a worldwide condition, not
merely limited to the U. S. The
world boom has been many dec¬
ades
obsoleting
the
business

cycle. No revolution so long in
the making can end quickly. The
abroad

boom

boom here and
clearly show

the

will

inflation

the boom abroad

•

1956
that

Exemplified by the steel indus¬
try, politics have long since obsoleted the saying
that as Maine
goes
so
goes
the nation.
But

the

under
stances

rationalized

very

circum¬

same

of inflation and excellent

business.
Good business and inflation
conditions of
Let.

strong stock

a

are

mar-

But

they are not always the
of
strong stock markets.

cause

The rules of valuation also apply.
The
rules
of
value
have
been

broken

times

at

in

the

past—in

1.929, in 1937, at the peak in 1946
These things have hap¬

find now.

pened, but the

duration of these
abnormal valuation patterns has
•never
been long.
Although

no

one

knows the fu¬

there are rules of value
which
provide safe conduct to
ture,

investors.

According

to

these

stocks today are abnor¬
mally high; and this is said with¬
out ignoring the circumstance of
very good business and a further
threatened price inflation.
3

ules,

Stocks like International
Norfolk

tion

and

3*ave

a

Air

American

during

price

•States
was

Western,

moved

ward

of

&

side wise
a

Reduc¬

Telephone,
or

down¬

period of 15 years

inflation

(1937 to

Nickel,

in

1952).

the

United

This also

period of wide growth of

business

must

goes,

everything

so

steel

go.

times

all

a

worldwide

products
the

to

flationary

the

in

the

ore

acute in¬

has

shortage

steel

short¬

from

A desperately

ground.

al¬

ready started.
If Wall Street

speculated about

politics less and studied industry
more, it would
know that steel
industry budgeting for expansion
the verge of

on

imum

of

$10

forcing

billion

a

into

min¬
quick

investment in basic facilities.
mills

exactly

dends

return

1955's

new

steel

basis.

new

of

plus

on

is

steel

mill

mill

will

put

7%

plus

a

a

divi¬

money.

steel

capital

This

their

new

pay

stocks

fiduciary

stock market and fiduciaries must

buy yields.

duciary
a

This

stock

the

crowd

psychiatrist—

economist

business

or

L. R. Goward

Rejoins

CHICAGO,
Goward
office

has

of

111.

joined

Stone

Lincoln

—

&

the

R.

Chicago

Webster

Secu¬

rities

Corporation, 33 South Clark
Street, as a registered represen¬
Mr.

Goward

began

with

career

in

New

his

Stone

York

in

invest¬
&

is why

market

is

the fi¬
becom¬

steel market, and it is why

the

military

courts.

been

to

arrested

Court granted

firm until

1944.

Webster

upon

He rejoins

from

Blunt

Stone

Ellis

&

Simmons.

which, in effect, directed
him over to the civil

turn

Lincoln, according to the learned au¬
told the Supreme Court, in effect:

You have issued your

order,

now

let's

that

..Apparently
Southern

States.

is

the

attitude

Arthur

are

and means
Mississippi and Georgia have already
passed legislation whereby the schools will be
operated on a private basis with public funds.
ways

cision,

The

two

houses

Virginia is

of

the

Virginia Legislature—

of the most advanced Southern

one

Carlisle

states—have just voted to set up the same sort
of vehicle subject to a referendum of the voters.

Now, the President's Conference
a

Education with

on

Bargeron

more

than

thousand delegates met in

Washington coincident with the special
meeting of the Virginia legislators. It was widely represented by
the "liberals" who want the Federal Government to go whole¬
heartedly into the support of Education, and generally pictured in

the newspapers as a stacked group which would come up with
recommendations in line with the Administration's desire to keep
out of this field.
All during its sessions the Conference was represented as sup¬
pressing free speech and free discussion. But surprisingly enough,
whether there was suppression of free speech and discussion or
not, it came up with a strong recommendation for Federal aid to

the schools.

This action

appearance

of

heart

the

on

followed, significantly, on the heels of the
Folsom, the Secretary of the Health,
Welfare Administration. He signalized a change of
Marion

and

Federal aid, not

There

was

now

against

favor

in

of

just loans to the States but grants.
monkey shines somewhere.

demand that States not complying

a

which has been

Administration

the

There isn't likely

Federal aid voted for the schools by Congress unless the
rebellion is straightened out. Most certainly there will

Southern
be

said

some

are

to be any

B.

part of the Administration

aid

Federal

lation

with

with the Supreme Court

such restriction is likely to get favorable action.
So what has brought about the surprising turn-around on the
any

part of the Administration?
tion circles that to be

Either it is thought in Administra¬

for Federal

now

Jan.

anything because the legislation cannot pass, or
the Administration would like to have the aid legislation with a
view to bringing the Southern States into line.
That it could bring them into line if it has money to dole out

1

Leo

Reif

will

Stock

forget

he had at his command.

than probable.

more

be¬

Roosevelt

lot of its prejudices with the

a

The way

about repeal of prohibition in Southern

partner in Arthur Wiesen¬

a

aid will not cost the Fed¬

eral Government

State aid

Wiesenberger

To Admit Leo Reif

York

most

of

busy working out
to circumvent the Court's de¬
They

to the States for education seems

On

see you

enforce it.

the Great made the South

come

by the
him a

thorities,

Web¬

1924,

graduation from the University of
Virginia, and remained with the
&

had

The Supreme

decision not be given any Federal aid and most certainly no legis¬

tative.

ment

who

Indianan

an

military.

Education and

Slone & Webster Sees.

in which he brought

States is

Roosevelt didn't do much of it himself but it

was

a

case

in point.

his Administra¬

tion and he should get the credit.
What

happened

that Jim Farley, Roosevelt's chief politi¬
time, browbeat the Southern legislatures into
falling into line with the threat they either did this or they would
was

cal lieutenant at the

get

no

I

Exchange.

Federal relief funds.
not at all

am

dole

to

out for

sure

that

Eisenhower, with

a

lot of

money now

schools, could not make the Southern statesmen

calm down notwithstanding the strong feeling which the desegre¬

gation decision aroused.

But what is not yet clear to me is how,
circumstances, he expects to get the money.
In the meantime, though, he would seem to have removed as
issue against him, the contention that he is heartless about the

Hardy & Go. Sponsors

under the

Two Lectures

an

Hardy & Co., New York invest¬
firm, will
bull

on

sponsor

two lec¬

markets;

taxation

for

investors; and personal plan¬
ning and investment management.
The

lectures,

session
ment

course

(Dep.

nine-

a

(Dec. 12, 8 p.m.)

in the

schools.
and

be

an

seems

through his Secretary of Health, Education,

now,

an

advocate of Federal aid to education.

awful opening of a
to be well

sitting

on

Thursday

15,

4

pm.)

in

afternoon

Schwartz's

are

open

Ball, Burge & Kraus

Stanley Merrill

Albert Frank-Guenther Law,
131

Firm Name Now

John A.
Frame has
of Frame,

the
on

25

retired

King

under

the

McFadyen

Stock

a

Howard

W.

Street

the

firm

&

West,

now

name

Co.,

be

of

to

the Board.

To Admit SokoS

carried

John

A.

Limited.. The

CLEVELAND,

Ohio—Henry F.
Otto, William B. Anderson, Bruce
B. Ranney and Henry Weissen¬
bach, will be admitted to partner¬
ship in Ball, Burge &
Kraus,
Union Commerce Building, mem¬
bers

of

west

Stock

the

I. M. Simon & Co.

and

member of the Toronto

Exchange.

according

Calkins, Chairman of

John T.

—

from

Inc.,

Cedar Street, New York City,

Vice-President,

McFadyen & Co., Lim¬

business will

firm is

as

McFadyen Go.

TORONTO, Canada

To Admit Four

Rejoins Albert Frank

to the public.

Stanley F. Merritt has rejoined

ited,

This could

Pandora's Box but the Administration
the lid. Methinks there has been some

mighty clever politics within the Administration on this. Cer¬
tainly it was surprising when the Administration spokesman ap¬
peared before the more than 1,000 delegates to the education
conference and bespoke Federal aid and it was surprising when
the so-called hand-picked conference recommended it.

Restaurant, 54 Broad Street.- The
talks

is

He

Welfare,

Delmonico, 502 Park Ave¬
and

nue,

of

general invest¬

topics, will be held Monday

evening
Hotel

part

on

The

money

raise

for

power,

for

this

utilities

combination

earning
need

raise

they will

in

The

will

as

money:

market

forecaster.

tures

warehouse

yield

t^«

panics.
The
industry is heading into an

in

steel

for

not

ment

unprecedented

is

tion

month in¬

many

confidence

vestor

age

ever'knows

Where steel leads,
prices will follow—no mat¬

how

population and of national income. ing




steel

as

else

ter

the

York

than

more

that

stock

which

at

berger & Co., 61 Broadway, New
City, members of the New

the boom here.

pace

are

rate

un¬

even

or

capitalize earnings, which is
the price determinant, is a ques¬

will continue to

to

mally low yields

The

before the
It has all along been

boom here.

pacing

in stagnation
decline.

actual

began

rtocks

sold for 7 times earnings
yield about 7%, the underval¬
uation was ignored. Today, high
price-earnings ratios and abnor¬

in

ster

theory, but

a

inflationary forces, since the
World War II; simultane¬

of

responsive

has

been

not

inflation, stock earnings

overstated.

it

because

to
may

reassertion

market.

Ironically, the background

activity,
large
profits;

and

bulls, who braintrust and
panic
themselves
into
selling
stampedes on "news," chase the
market just as hard
after each
new

trial

May

investors. Nor
businessmen

investor

of

Wilfred

will

is

yields have
2.5

A.

busi¬

of

indus-

great

the

on

enjoyed

expanding

economy,

con¬

ing 1956.

fluctuated bew e e n

have
an

should lose their confidence dur¬

market

Stock

of

n —

4%.

times

bond

Janeway

Contrary
though it

AAA

AAA

Eliot

ings and yield

times

times

earn¬

expression

nessmen

yield,
in
ten
Now

an

part

average,

past

not
as

fidence

times

9.9

has

political

at

sold

market.

risen

lead¬

The

the

were

conforming
be¬

on

They

assurance

no

market

on a

yield.

fac¬

of

against segregation in the schools and the South's apparent rebel¬
lion against it. The Lincoln-Supreme Court issue revolved around

warrants

havior.

price - earn¬
ings ratio and

Arnold Bernhard

and

business
tors

Eisen hower

have

t

of
eco-

c

bull

ing industrial stocks that com¬
prise
the
Dow-Jones
Average
a

i

Survey

rules of value.

own

has

been

rot

Director

Line

external

Court is

being cited in connection with the Supreme Court's decision

now

writ of habeas corpus

n o m

bull

market

commu-

g

diction

over.

BERNHARD

Research

and

The

n

Correct pre-

bull market is

The

com¬

nity.

mmrnrn

worry

With Values
Editor

i

The bull market has been fore¬

Stock Market Out of Line

By

market's

stock

sequently,
there's no
need to
whether the Eisenhower

November 19:

on

the

of the News

By CARLISLE BARGERON

A set-to between Abraham Lincoln and the Supreme

determi¬

important

of New York casting the coming inflation. Con¬

Harmonie Club

=

Financial

and

Memos

Janeway's

senhowers illness, held at the

Ahead

ing
price
level
will
be
the
psychological state of the invest-

of

Publisher

and

most

of

nant

JANEWAY

ELIOT

By

The

Washington

.

Chronicle

Driving Bull Market Up
Economist

From

MAY

WILFRED

Steel, Not Confidence,

forum,
"What's Ahead for the Stock
Market?", including possible
implications of President Ei¬
presentations at

will

Psychology the

A.

Thursday, December 3, 1955

.

dividends

Determinant
By
The

Herewith is

prices

steel

Crowd

market outlook presented at forum by
Bernhard, Janeway, and May.

on

Messrs.

stock

continue,
up.
A
rising steel market will be a ris¬
ing market.

"What's Ahead foi

.

.

ST.
&

LOUIS,

Co.,

315

M.

Simon

Fourth

Street,

Mo.—I.

North
the

members

of

Midwest

Stock

New

York

Jan.

2

will

William

W.

admit

Sokol to partnership.

and
on

Mid¬

Jan. 1.

(Special to The Financial Chronicle)

BEVERLY HILLS,
L.

Calif.—Mark

Insko and Robert I. Baron

now

on

York

Two With Daniel Weston

and

Exchanges,

New

Exchanges,

affiliated

Weston &

Drive.

with

Daniel

are

D.

Co., 140 South Beverly

Volume

Number 5488

182

...

The Commercial and Financial Chronicle

$5 billion, consumer
nearly $4 billion, and
outstanding increased
$10
billion.
These
and

over

were

Interest Rates and Credit Policy

credit
about

By RICHARD YOUNGDAHL*

other

Vice-President, Aubrey G. Lanston & Co., Inc., N. Y. City

the

available

Youngdahl reviews the forces that affect interest rates,
such as the shifts in credit demand and supply, and the shifts

supply of

from

our

funds,

for the different categories

credit

major

insti¬

had

in

than in

duction

credit

our

into

markets.

intention is to isolate a force almost any general level of
'♦
few
of
the major relationships interest rates they choose to es¬
H which are important in determin- tablish. This was amply demon¬
ing both the level and the struc- strated in the war and postwar
ture of interperiod. They did this almost en¬
est
rates.
I
tirely by affecting the supply of
funds — by creating whatever
have selected
''
loanable funds, were required to
for discussion ::
some
forces *
keep interest rates from going up.
When rates fell too low they abr
which
I i be-

enough loanable funds,
interest; rates had to rise to high
levels, particularly during the
first half; of the year.
In
a

the year

1954, we

shift

marked

in

flow

of

We

all

The

A

point
ences

corresponding lift in the inter¬

structure,

which

if

rates,

this

time

rates

the

coun¬

actually a
pattern, or
you
wilL
at

structure

will

There

on.

by maturity,
is

arid supply. Two major borrowers

business

drastically

viduals.

-

"

v

lieve

;

most useful in

will

be

sorbed loanable funds.

.

But when

the Federal Reserve elected to

tablish

and

es¬

maintain

;

to

f

and the future

particular
interest rate levels, it had to fore¬
go. its role as a balance wheel
against,, the. business cycle.
In
actuality it worked to support in¬

in-

flation and to reinforce deflation.

reaching a
point of view

■

with

respect
past

the

of

course

terest rates.
shall
>

not

In recognition of

this, interest rate
pegging practices have long since

I
C. Richard

to

develop my
own
present
point of view for you.
rates

Youngdahl

funds.

economy

such

ours,

rates

in the

for
are

as

long

Changes

stating that interest rates are

by the forces of sup¬
ply and demand, particularly be¬
fore a group such as this, I know
I run the risk of being consid¬
To

bit naive.

of you

some

it may seem too obvious a point.
Others may consider the general¬

useful.

ization far too simple to be

certain
posted interest rates that we all
There

are,

of

course,

know have not changed

Reserve

actions

do,

nevertheless,

oring to tailor the supply of Re¬

estab¬

established

a

Bank

serve

credit

to

is

what

appropriate to the prevailing eco¬
nomic situation, the Federal Re¬
serve System strongly affects the
aggregate supply of credit. At any
point in time, the Federal Reserve
tends

to be the most important
single force operating on interest
rates. But it is only one force, and
its influence is primarily on credit
supply.
Credit demands can be

influenced only to a very moder¬
ate extent by the instruments now

available to

Federal

Reserve

au¬

thorities.
Shifts in

Credit Demand and

irrespective of what has
Supply
to credit demand or
For an adequate explanation of
supply. If we focus attention on
interest rate changes we must in¬
these rates, the role of changes in
spect
both
credit
demand
and
the supply and demand for credit
credit supply factors.
It is not,
is not easily seen. But these in¬
however, as useful as it might
flexible rates typically pertain to
credit sectors where service is the

product
being
sold,
not
In
aggregate
amount,

such credits are
dwarfed by the volume being ex¬
tended under circumstances where
demand and supply forces have
real freedom to play on interest
moreover,

rates.

large

lenders,

a

few

by

re¬

fusing to follow an interest trend,
can
sometimes bring about a re¬
versal—at least for
dividual

lender,

a

time.

if he

is

tistics

move

*

r

look

to

to

in

1953

for

this

of

interest rates.

kind

of

action

The

same

Major Borowings:
Federal

is

State

local

and

—

credit

Consumer

Mortgages
Other

bank

loans._

will

the

We all

also

buyer go on in almost all markets,
not just in the market for credit.
Frequently individual sellers or
buyers do better because of it. But
over
the longer run, the basic
market forces have their way.
Federal Reserve authorities, if

Life

4.6

0.9

4.6

5.2

5.4

6.1

—0.1

—0.7

time, the

same

credit

available

supply

decline
term

to

increase

marked

availability,

was

a

interest

in

Government

in

credit

very

sharp

rates.

in¬

have about demand

we

never

construct this type
a

about the

tions, however, shared somewhat
in the growth in loanable funds.
The result of the easing off in
demand for credit, together with
the

rates

supply shifts. But the facts
really be adequate to
of analysis on
predictive basis. For guessing

can

institu¬

All

banks.

of interest

fragments of

and

major institutional investors rose
sharply in 1954. The most im¬
portant increase was, of course, at
commercial

future

whatever

formation

the

from

fry. to forfn a judgment

to the

as

from

future

isolate key
on
those.

we

must

try to

forces and concentrate

Before

yields dropped

of

are

we

interest

features about interest rates that
merit

as

the
less

rates, there

are

of

interest rates

convenient

though it
to

lower market
advantageous

were

This, of

simple

a

in

ful

funds as fully invested
they had been in 1953.
Comparable figures on borrow¬
keep

to

it

are

is

available

we

many

kinds

bks.

Fed. Res. Banks.

.

come

although we
more
flexi¬

group,

to

than

is

point

most

that

and falls

uniformily, nevertheless,
rate
relationships
hold reasonably well.
interest

some

as

Importance of Yields

use¬

The

financial

key guideposts in the in¬
are the yields

terest rate structure

Continued

credit

on

^

Equipment Trust, Series EE
Equipment Trust Certificates

January I, 1956. To mature $773,000 each January 1 from 1957 to 1971.

Philadelphia Plan with

25% cash equity

0.6

3.10%

Jan. 1,1962

3.25%

Jan.1,1967

Jan. 1, 1958

3.125

Jan. 1,1963

3.275

Jan. 1,1968

3.375

1.3

2.5

Jan. 1,1959

3.15

Jan. 1,1964

3.30

Jan. 1,1969

3.40

29.3

26.6

Jan. 1,1960
1, I960

3.175
3.175

Jan. 1,1965
1, 1965

3.325
3.325

Jan.
Jan.1,1970
1, 1970

3.40

J

Jan. 1,1961

3.20

Jan. 1,1966

3.35

Jan. 1,1971

3.40

]

associations

The
for

in

ins.

year

credit
the

first

companies

1.8

2.0

3.8

4.3

4.5

4.6

15.3

20.5

1953 was a big one
demands, particularly
six

by

3.375%

offered subject to prior

sale, when,

Drexel & Co.

eight months.
whole the Fed¬
eral Government borrowed riearly

corporate bonds and stock issues

and if issued and

Union Securities Corporation

to

billion,

as

Salomon Bros. & Hutzler

Stroud & Company

For the year as a

$5

are

subject to approval of the Interstate Commerce Commission.

us,

Incorporated

December 8,1955.

i

on

Government Securities

Pennsylvania Railroad

These Certificates

us

we

the
pattern of
rigid structure that rises

$11,595,000

received

of

while

consider

as a

12.0

9.6

very

Consumer credit rates

this

9.8

5.2

a

;

move

NEW ISSUE

Issued under the

in

>

rates

expect.

rates

We know

of

interest

have

a single
is far too

very

those

seen

as

live.

in

cannot

homogeneous, and
course,

of

volume

from

■

The

often

of credit

concept to be
studying
the

world in which
there

speak

interest rates

treat

rate.

the

recently
bility in these

some

brief exploration.
In con¬
sidering the factors affecting the
level

that

have

begin a search for
key factors determining the level

yields showed correspond¬
ingly sharp declines. In part, at
least, as a result of these inter¬
est rate shifts, other lenders —
particularly business corporations
—cut back their lending and in¬
it

funds

sluggishly.

term

since

fact

financing ivent beyond the

position to profit most from the
tax-exemption feature of these

Rates

and even went
much lower for a period. Long-

made

such

issues.

Relationships Among Interest

around. 1%,

vesting,

the

to

Some

Short-

I think here of

3.7

Nov. 28, 1955.




the

when we

demands.

rates

municipal securities where inter¬
est rate or yield movements may
resist basic change for a time,
because of special factors in the
tax-exempt markets.
This hap¬
pened in 1953 and 1954, when
yields
on
municipal
securities
rose
more
sharply
than
other
rates and then failed to drop pro¬
portionately with other rates, due

Jan. 1,1957

and state and local
governments the same amount,

Bank

At

credit

To be dated

Youngdahl at the Con¬
Correspondents, First
National Bank of Chicago, Chicago, 111.,
talk by Mr.

in

offsetting the contractions

other

that credit form.

of Debt

&

Savings & loan

certainly

of

through, consciously ahd un¬
consciously, an analysis like this

go

these increases fell far short

perhaps

Other

respond fairly promptly but with
varying degrees of lag, frequently
due to special factors unique to

lenders:

actually intends to borrow. Tugof-war tactics between seller and

can

but

are

prove

Selected institutional

Mutual savings bks.

of

if

trends

rates

MATURITIES AND YIELDS

business

temporary, assuming the borrower

ference

interest

bill

best illustration.

Corporate bond &

Commercial

disposed,

larger in 1954 than in 1955,

were

1953 1954

^

to borrowers, of course. But
here, too, the effects can only be

•A

future

the

(Billions of $)

open

are so

and

point.

And Equity Financing

lending

course

the

by

Treasury

sta¬

somewhat longer period of

fect

rates

facts could be developed.

3lA%

time, nor can it permanently af¬

they

credit

in Major Types

stock issues

a

a $3 billion con¬
Increases in mortgage

of some interest.

Increase

Bank loans to

available

1954

and

side, yields will be affected. But
since the lender probably cannot
hold funds uninvested for long,
his action does not affect the total
over

,

interest

analyzing
shifts in demand and supply.
If
might also be possible to develop
statistically a worthwhile point
of view with respect to current

reflecting

price was arrived at by show¬
ing the statistical balance of sup¬
ply and demand during a par¬
ticular period. I think, however,
that a summary of the statistics
on borrowing and lending activi¬

contraction in supply, and,

funds

it is quite pos¬
if you have the data, to
explain past changes in the level

immediately in response to
shifts in the relationship of over¬
all
credit
demand
and
supply.

any

if the market is thin on the supply

of

the

demonstrate

im¬

portant one, can hold back funds
if the yield in the market is not
acceptable. This results in a tem¬
porary

As you can see

of

up or

down

sible,

It is always difficult to show how

An in¬
an

to

seem

ties
All of us also know that

individual

de¬
The

borrowing and in corporate fi¬
nancing in the capital market

to

in the last

happened

credit.

their

,

traction.

rates

25 years,

basic

all,

of

credit

interest

run

demand.

ered

curtailed

the credit market.

Government
borrowed
less than $t billion,from the pub¬
lic, a decline, of almost $4 billion
froth
the previous year's level.
Consumer credit scarcely rose at

Federal

supply

an

in rates, like
changes in the prices of commodi¬
ties, reflect changes in supply and
In

the

by

powerfully
affect
interest rates today even though
the System is not now directing
its efforts toward establishing any
particular rate level. By endeav¬

In

lished by the interplay of
and demand forces in the
market.

abandoned

Federal

prices

the

are

been

Reserve.

loanable

paid

on

Federal

indi¬

and

me

point for this group.

Some interest rates

,

try

Interest

.

mands

corporations

and

need for

no

-

*

any

differ¬

show

in interest rates by quality,

by tax status,
to labor this

market, particularly from

to

at

in

the

drawn

funds

rates—a

of

so

again

new

of

has

credit

of

interest rate is

look

know

that the result this year has been

est-rate

sections

lieved.

a re¬

spectrum

reserves.

kinds of

although geographically dif¬
are in fact probably less
than
is commonly
be¬

counts, but largely to an increas¬
ing restraint on the availability
bank

same

different

marked

savings

deposits and share

on

It is

ferences

structure

a

demand

the

try,

rates

interest

command

various

ac¬

of

quite

see

both

time

in

limited

1954, due in part of

the

IX

always vary .widely.

credit

the supply
major
lending
more

that

also true that the

is another
demand side.

hand,

from

in

and

them

1955,

year

the

other

of

do have in¬

we

this
on

funds

come

To attract

My

one

of

months

institutions has been

non-financial

investors

that

the

are not available

10

figures

dicate

corporations,
pension funds, for¬

to

first

record
On

individuals,
eigners, and other miscellaneous

of yields on government securi¬
ties as affecting interest rates for various kinds of loans, and
discusses Federal Reserve policy and the rediscount rate
changes in determining level of interest rates.

the

but those

The rest of the

therefore,

from

new

ing and lending
for

demands far outdis¬

tutional lenders.

Stresses importance

of loans.

credit

tanced

Mr.

in the structure of interest rates

■

rose

mortgages

(2423)

page

24

12

The Commercial and Financial Chronicle

(2424)

derables

The Banks and Government Bonds
By LEROY F. WINTER!!ALTER*

Vice-President, First National Bank, Chicago

reviewing credit policies of recent years, mid-western
banker discusses the factors which should determine a bank's
Government bond

Lists

portfolio.

the management of

fundamental importance in

Government

a

take advantage

time

As

marches

changes in
in

ment,

economic environ¬

our

Federal
policies, and in the

Treasury

Reserve fiscal

and

interest

rate

Interest rates

are

the

constantly
flected

in

re¬

early in

the

this and

during

of these

scope

tive

holdings

bank

a

of

year-end,

of

be¬

their

assets of the bank. In recent years,

through the formation
growth of the tremendous

"active

restraint"

pressures

rates

public debt, they have grown in
importance until they are now a
major source of earnings both in
the investment account and in the
account. Liq¬
ability to convert

reserve

assets into cash at

tice—is

of

moment's

a

no¬

critical

it

1954,

December,

and

the

early

in

met

built

inflationary

as

un,

been

have

interest

and

practi¬

firming

cally all during the year 1955.
This

-

since

flexibility of fiscal policy
contributed

has

1951

often

so

occur.

sub¬

ments

visualize

to

me

significant change in the interest

they have been forced to approach
the

difficult for

in the economy during the

year

discount

window

in

ever-in¬

down-turn

a

in

business

suf¬

of

rate structure.

On. the other hand,
of the word "plateau" by

the

use

Dr.

Burns

would

to

signify
that the rate of expansion is slack¬
ening and the trend leveling out.
seem

creasing numbers in order to ob¬ It does seem that the attitude of
tain funds to satisfy legitimate our fiscal authorities has hereto¬
credit needs without the necessity

fore been

of

to

a

selling

intermediate

issues

at

loss.

fact

that

there

of watchful waiting
eventual results

one

what

see

the

would be of the restrictive

Policy During

Recent

Years
To

obtain

true

a

picture of the

situation, I think we should re¬
view in detail the history of credit

policy during recent

years.

should

formulate

enable

to

us

This
a

quotations.

Since

Federal

the

so-called

"Treasury-

Reserve

Accord"

was

reached in March, 1951,

fiscal pol¬
icy has been directed towards the
establishment

healthy

of

sound

a

economy

wherein

and
our

'cherished rights of free competi¬
tive enterprise would be amply

plying moderate amounts of
serves
through the purchase
Treasury
chase
ment

Bills,

and

agreements
bond

by

with

dealers.

re¬

of

re-pur¬

Govern¬

This

action,

opinion, is

my

to

furnish

reserves

during this period and, at the mo¬
least, should not be con¬
as a change in Federal Re¬
serve policy. i ■

ment at

strued

With
the

these

thoughts

supervisor

bond

account

of

in

mind,

Government

a

keep himself
informed regardirigrthe policies of
our fiscal
authorities, and he can
can

himself accordingly
re¬
garding the maturity schedules he

govern

To achieve this end, it may want to maintain. The con¬
to encourage and stant aim of fiscal policy is, of
business
activity, course, to keep the economy, so
high employment, a rising stand¬ far as possible, on an even keel,
ard of living, and a reasonable and the, effects of the
policies
stability of the nurchasing power adopted on the interest rate struc¬
of the dollar.
The flexibility of ture and bond prices can be an¬
fiscal policy has been graphically ticipated with a reasonable degree
illustrated during the period from of accuracy.
1952 to the present time.
Strong
Factors Determining a
inflationary pressures developed
Government Bond Portfolio
during the latter part of 1952 and
strong

There are,

early 1953, due to strong demand

however,

many

other

factors which must be taken into
♦An

the
of

address

Conference

the

First

by

of

Mr.

Winterhalter

at

consideration

Bank

National

Chicago, 111., Nov. 29,




Correspondents
of Chicago,
1955.

R»*»k

an

the

in

the

handling

of

investment program. Basically,
presence

of so

many

impon¬

consists of

situations

deposit

major

hand, where a concentration ex¬
ists in large deposits of national

turities

ening
sible.

there is always the pos¬
that major withdrawals

might occur, and

bank must be

a

prepared to have sufficient shortterm
securities
or
other liquid

ih

for protection

available

cases.

Cash

to

various other

are

account to contribute to
fare

the

of

bank.

the
United
States
Bulletin
of
October,

formation,
Treasury

indicates

1955

a

of

commercial

that

had
approximately 15% of their Gov¬
banks

as

July

bond

ernment

callable within

31,

1955,

holdings

due

or

44% in
one-to-five years; 37% in five-toten years;
and 4% in over-ten
years.
As of June 30, 1954, these
percentages
were
respectively:
32%, up-to-one year; 26%, oneto-five
years;
33%, five-to-ten
years; and 9% in over-ten years.
will

You

note

one

year;

that

the

major

variations

quirements,

and the business needs of

will

usually

banker

to chart

community
the alert

are

this reflects the results

extent

refunding
a
large

Treasury
inasmuch

as

banks

have

tended

maturities

Excess

as

possible,

the

is

intervals

obvious

would, in most cases, apply only
to

the

institutions

larger

at

much

a

faster

rate

than

the

where

the variations are substantial over

in

bank

balances

Federal

the

all times.

(2) When loan demand exceeds
available

funds, it is sometimes
profitable to borrow tem¬
porarily at the Federal Reserve,
more

rate, which is presently 2Y%%.
(3) Frequent

supplement earnings, particularly
in

connection

with

Government

new

period of time. It has been my
experience that the average small
banker
ordinarily
maintains
a

the Tax and

use of

Loan account is often desirable to

offerings

of

issues.

a

Risks

constant

answer

problem. I believe that t.iis
method of handling cash reserves

invested

the

re¬

to the

operations,
number of

upward pressure on bank operat¬

his

should not

reserves

quirements with moderate success. especially if otherwise it would
schedules designed to be necessary to sell securities
provide funds at the anticipated yielding more than the discount

of

automatically
ex¬
by merely ac¬
cepting new issues as they were
offered.
Many did this to aug¬
ment earnings in order to offset,

enable

the wel¬

Among these

Maturity

in the up-to-one year
and
one-to-five
year
brackets, sufficient cash reserve for
and I would say that to a large
needs and does not keep
changes

given

a

methods

Reserve, but
should be kept fully invested at

float,

in

pos¬

the following:

(1)
in

in the

whenever

utilizing the Government bond

constantly \

vary

maturities

There
of

are

needs

from month to month

establish

to

ma¬

necessary

then, I would keep

or

intent

small

a

longer

provide the

Even

jority of banks, and close atten¬
"cut and dried" maturity sched¬ tion to the
history of available
ule, but purely as a matter of in¬ reserves as against reserve re¬

Without

into

picture to lessen the risk in the
long end of the bond list by short¬

sibility

assets

forced

income.

concerns,

such

is

mand

fully posted at all times and grasp
small in¬ the first opportunity presented by
the other changing conditions in t.re loan

relatively
balances.
On

dividual

bank in

a

large number of ac¬

a

with

counts

total

where

as

community with nominal loan de¬

immobilized

as

current

fully
his big-city brother.
as

(4)
a

considerations

Tax

occupy

prominent place in the manage¬

ment of

Government bond port¬

a

folio.
I am sure that most of you

know

the tax consequences of sales and
in the

Bond

Account

exchanges of bonds or other in¬
debtedness
securities.
To
those
of
operations has to do with the who do not, let me point out that
maintenance of a proper relation¬ a net loss* for the year on sales
ship between the market risk in¬ and exchanges of these securities
volved in the Government bond may be deducted in full from other
A

somewhat

different phase

and the essentially dif¬ income. On the other hand, a net
type of risk inherent in gain for the year on such sales or
the loan portfolio. Various types exchanges would be taxed at the
of loans
commercial, industrial, capital gains rate of 25%, if the
account
ferent

—

3%

4% expansion factor which

or

agricultural, consumer credit, etc.
—all pose different aspects as to
length of maturity, whether se¬
cured or unsecured, as to back¬
bracket, as I have mentioned be¬
ground
and credit standing
of
fore, is the tight money situation
borrowers, and other uncertain¬
which has existed practically all
is

regarded as normal
for our economy. Another reason
for the shrinkage in the one-year
generally

and which has forced many
banks
to
liquidate
substantial

year,

of

amounts

short-term

Govern¬

ment holdings.

Government

Bond

a

Account

average

duce

a

good rule

that

whereas

it

should

of
be

the

loan

decreased

the

below

52%

to

income

the
was

the

$25,000;
net capital gain for the

would be taxed at 25%. Ob¬

portfolio, viously, it is to your advantage to
plan your operations to take losses
a
cor¬

to

responding degree in the long end
bond list.

a

by

taxable

reduced

year

in

taxes

your

that

increases

In other

net loss for the year would re¬

of thumb to follow, it can be said

the risk

held

been

your bank has other tax¬
income in excess of $25,000,

able
a

not

as

had

words, if

In

general, and this is

sold

longer than six months.

extent

of the

these

With

securities

ties incidental to credit extension.

expansion

Questions in Management of

This will

neces¬

in

one

year

and gains in another

year.

•

•

maturity

sarily cause variations in matu¬
Up to the latter part of 1954,
figures as a background, the an¬
rity bracket percentages, and it is the bond market, as you know,
swers
to the following questions
my belief that, regardless of loan was quite buoyant and strong, and
may
be
regarded
as
being
of
risk, the average bank is reluctant as a result, bond sales during that
fundamental
importance in the under most circumstances to ex¬
period usually were made at a
of
a
Government tend maturities
management
beyond the ten- profit. Consequently, many banks
bond account:

year range

(1)

What percentage of the de¬

consists of savings

amounts.

to

restrict

in other than nominal ended the
bond men prefer bond costs

Most

their

maturities

up

to

eight, nine or ten years, depend¬
(2) Is there a concentration of ing on conditions, and rely on
the loan portfolio to furnish the
deposits in a few large accounts,
balance of earnings needed in the
or
are
they" scattered through a
bank's operations.
large number of relatively small
accounts?

de¬

necessary

foster

country.

in

moderate

such

be

deposits?

protected.
was

the

of

posit liability

for the normal expansion of credit

bond

the

of

the Federal Reserve has been sup¬

be expected in fiscal policy devel¬

Government

in

located

history

already in operation. Occa¬
sionally, and to a limited extent,

however, in
signed only

on

background,

in

meas¬

constructive background on which
to base decisions as to what may

opments, and what effect periodic
changes in fiscal policy may have

substantial

is

communities

among

be expected to be

can

the

although

ma¬

ures

Credit

mind

ing expenses, which seem to grow

ficient magnitude to indicate any

have caused banks to
liquidate practically all of their
short-term holdings. As a result

past

the

in

keep

Chairman of the Council
of Economic Advisers, aptly de¬
Burns,

of course, that circum¬
resulting from develop¬

stances

so,

insofar

it is

It is true,

doing

stantially to the formation of an
economy which Dr. Arthur F.

importance to
scribed as follows: "In an economy
a
banker during these periods of
like ours, poised on a hieh nlateau.
wide deposit fluctuations, and a
neither the threat of inflation nor
reserve
secondary
consisting of of recession can eyer be
very dis¬
short-term Governments, readily
tant." In the third quarter of this
salable, will furnish partial pro¬
year, total output of goods and
tection
against
unexpected
and
services reached
the astounding
substantial fluctuations in deposits
rate of $392 billion annually, and
which

application,

was

that inflationary forces were

however,

—

continued until the
when the Open

and

evident
again
relatively becoming predominant and a new
small ratio to
policy of "neutrality" was adopted.
other earning This policy ranidly became one of

Winterhalter

uidity

The Federal

Committee

Market

only minor

cause

secondary

sharply

reversed its restric¬

money

easy

were

concern

F.

a

policy and in May, 1953,
adopted a policy described as one
of "active ease."
This period of

a

government
of

raised

was

as

period.

There

time when the

L.

the

Reserve then

bond

ac¬

result of
other restrictive policies,
1953, and

problems.
was

rate

the bond market declined

and

nature

commercial

business situation.
firmed substantially,

rediscount

logical
principles

broad

general

in

For

banks.
seem

therein, in the
deposit fluctua¬
tions, and in numerous other local
conditions
peculiar to different

the

structure

all

and

tivities

cumulation and general optimism

regarding

the

have

local

inventory

speculative

credit,

examine

sections

for both consumer and

policy that will

of

it would

volatile,

more

fluctuations
rather

to

Demand deposits are, of

case.

course,

where

task

types of predominant business ac¬

of interest rate changes.

sweeping

on,

needs

purpose,

economic

factor. Sees a confused picture in what the future may hold with respect to Government
bond prices, but advises a cautious attitude by bankers in
arranging bond maturity schedules to provide opportunities
to

the

the

pro¬

difficult

a

variance

ing maturities to reduce the risk
j

workable

a

which

and stresses the value of selecting and restrict¬

bond account,

within

it

to

number of questions of

a

residing
makes

fit

condi¬

local

to the banker
the community

vide

our

After

relating to

familiar only

tions

Thursday, December 8, 1955

..

.

(3)
in

If there is a concentration
accounts, are they ac¬

large

counts

of local well known firms

where

the history of

This
from

also

makes

sense

to

me

another

schedules,

at

their

with

high level;
in some cases, very close to the
high for the year. When the bond
market declined substantially this
spring and early summer, the ma¬
jority of banks found Government
bond
prices substantially below
costs.

that

numerous

The

portfolios

in issues

on

very

a

their

angle.
Maturity
their
designed
to
furnish

maximum earnings consistent with

1954

year

net

result

banks

by

was

adjusted

taking

their books at

losses
high

a

price, and reinvesting the proceeds
loan in
other issues not substantially

fluctuations liquidity requirements and
ascertained, or are portfolio risks, can also afford identical
to those sold. I use this
they of large companies doing a needed protection against chang¬
terminology because a loss would
nationwide business where sub¬ ing interest rate trends.
A uni¬
be disallowed on a wash sale; that
stantial
fluctuations
might, and formly staggered maturity sched¬
is, if the same securities, or sub¬
often do, occur frequently with¬ ule, whether it be for a cycle of
stantially identical securities, were
out previous notice?
eight, nine, or ten years, supplies
to be purchased within a 30-day
(4) What ratio of cash reserve an abundance of funds available period before^ or a 30-day period
for investment each year. Assum¬
is
after the sale. In addition to the
maintained, and are records
kept of the history of fluctuations ing that, a bank maintains a grad¬ improvement in the composition
uated maturity schedule, a pre¬
to
provide
a
reasonable basis
of
their investment portfolios
mium loss in the long end of the
upon
which to chart the cash
through these so-called, but mis¬
list
can often be nullified, at least
needs
during the period of a
named, "tax swaps," these banks
partially,
by
the opportunities
year's time?
were often able to improve their
provided by the balanced sched¬
(5) How are loans divided as to
yield by selling premium bonds
ule, to reinvest maturing issues
and buying new bonds at par or
commercial, agricultural, indus¬
each year, at relatively more at¬
trial, real estate, consumer credit?
less, or by buying a bond with a
tractive rates. The question as to
(6) What is the ratio of loan whether a schedule should be re¬ higher coupon than the one sold.
While losses taken this year re¬
volume to total deposits?
stricted
to
eight, nine, or ten
duce taxes by 52% if you have a
Savings deposits are normally years, or some other cycle, is
net loss on other bond transac¬
considered more stable than de¬ something, of course, which de¬
mand deposits, and a bank with pends on the many imponderables tions, they also reduce net profits
of the bank after taxes by the
large savings totals, in theory at I mentioned previously—having
remaining 48%.
Thus, reported
least,
would
seem
justified
in to do with local conditions, etc.
weighting its Government bond I do believe that the maximum earnings in a loss year will suffer
unless
you
have bond reserves
account in relatively longer ma¬ length should be confined to ten
turities than would otherwise be
Continued on page 46
years
except in unusual cases,

can

be readily

Volume 182

Number

5488

.

.

.

The Commercial and Financial Chronicle

Policy

needs

Last

ernment

taxes

sales

not

of

association

meetings, of

most financial

statements, of near¬
ly all economic reports, and cer¬
tainly of every
political plat¬
form!

Fortu¬

nately,

most

of

today's

of the

the

other

hand, the August
estimate of receipts, although $2.1
billion higher than estimated by

nomic

the President last January, is still
It looks now as though Fed¬

prob¬
lems emerge

low.

from,

eral

a r e

spotlighted by,
buoyant pros¬

be

this fiscal year could

revenue

sufficiently

higher

than

esti¬

mated

by the Treasury last August
wipe out the then estimated

perity at home

to

and
and

administrative budget deficit, and
to result in a moderate cash sur¬

nomic outlook

plus.
Prospects

abroad

the op¬
timistic eco¬

for
im

the

in

years

mediately

ahead.

This

is

the

ahead

Grover W. Ensley

it

v

problems

from

by

recession

international

c o n

or

d i-

tions.

Although

$400 billion national

a

is
the

immediately

unlikely that total Fed¬
expenditures can be reduced

eral

posed

years

also good, even though

are

seems

welcome contrast to the distressing

worsening

fiscal

budget surpluses

levels.

t

cur r e n

spending

Present

•

defense is close to
the maintenance level, but nondefense spending will rise moderatelv

for

the basis of present pro¬

on

in sight, few
to expand grams.
At present tax rates, Federal
during the next ;
year as
it has during the past receipts will rise if the economy
year.
Today unemployment and continues to expand. Longer-run
unused
industrial
capacity
are projections at high levels of pro¬
economy

clearly

expect

economy

real

7%

output

near

irreducible

an

compared with

minimum

year ago.

a

as

Like¬

duction

employment suggest

rise

in

Federal

should

tax

re¬

the

needed

lack

of

characterized

a

We

expand

need

to

other

and

portunities

automation
we

need

more

get surplus in fiscal 1957 and the

growth, roughly one-half that of
the past year, a rate consistent
with rising productivity and the
normal growth in the labor force.
In the first instance, private and
programs must provide the
restraint needed
to prevent the

current

prosperity

from develop¬

with

ing into inflationary

boom

the

subsequent

possibility
The

bust.

of

a

Government

Federal

must pursue

consistent fiscal and

monetary policies.

In the second

place, the Federal Government,
in cooperation with others, must

develop programs which will per¬
mit and encourage improvement
in the segments of the economy
which have failed to keep pace
With the general advance.
have

I

selected

today

four

which

are

major
closely

discussion

for

problem areas
related to the

stability and growth objectives of
the Employment Act of 1946. They

first, Federal fiscal problems;

are,

second, monetary and credit prob¬

lems; third, problems of agricul¬
ture; and fourth, problems of lowfamilies and chronically

income

depressed areas.
*

-

-

;
'

'■

Federal

balanced

the

current

fiscal

budget for

ending
probable.
The "Review of the 1956 Budget,"
issued last August by the Execu¬
tive Office of the President, esti¬
-year

June 30, 1956 now seems

Federal

expenditures

at

poses

important

liberate

changes in Federal tax
expenditure programs? What

or

ducing the national debt, or with
expanding Federal financial sup¬
ways,

pretty much agree
Federal budgetary goals.
few still insist on trying
balance the budget every year.
on

Only

a

to

Most

guided

are

by general

nomic conditions and the position
of the combined
ness,

budgets of busi¬

consumers,

Put

ments.

objective

another

now

is

that

and
views
or

do
of

not

the

necessarily
Joint

individual

rep¬

Economic

members

Committee.




of

House

Conference

held

the

that

„

,,

meeting this week, will come forth

apparent later in 1956.
is

There

current

problems.

i For

the

fall

of
1954,
experiencing
most rapid ad¬

economy

history's
projections,

see

Potential

Eco-

to

today

months.
sumer

be

on the Economic Report by the Committee staff,
Committee Print, October 1954.

for

the

Committee

Joint

A

swell

ground

This advertisement is neither

an

offer

to

sell

nor a

to

balance

only

too

carry

big

with

interfere

solicitation of

a

it

can

sustainable

rate

a

Continued

load,

on

an

offer to buy

any

NEW ISSUE

200,000 Shares

Greetings Corporation
Class A Common

If

Shares

(Par Value $1 per Share)

fiscal

policy for the coming
is to be based on the need
for price stability and sustainable
high levels of employment and
production, commitments to re¬
duce Federal receipts should bg
until

the

economic

out¬

Price $22.00 per

Copies of the Prospectus

look for the coming year is clearer,
even

though

may

we may now reason¬

forecast

ably

as

balance

or

even

may

Share

be obtained from such of the undersigned

legally offer these securities in compliance with
the securities laws

k

of the respective slates.*
*

■

\

•

surplus in the Federal budget be¬
cause

of

current

year

the

momentum

prosperity.

The

of

McDonald & Company

the

emer¬

of a surplus in the coming
should not lead necessarily
-

Goldman, Sachs & Co.
A. G. Becker & Co.

Eastman, Dillon & Co.
Paine, Webber, Jackson & Curtis

-..

Incorporated

higher priority
standpoint of maintain¬
ing economic stability. In the face
from

a

next

Of

Shields & Company

the

booming economy, a tax cut
year would be inflationary.

course,

the

economic

outlook

December 6, 1955

-

Bache & Co.

con¬

expansion can
tempered by monetary

of these securities. The offering is made only by the Prospectus.

American

of

and business

policy. If monetary restraint tries
to

White

Education,

on

yet from monetary
though the effect may

year

of

the

are

suggest that

tion and at stable prices.

Dr.

Ensley

hopes

to

credit

and

the
of

one

new

of working and living. High

budget at high
levels of employment and produc¬

debt might hold a

Committee

and

Problems

as

even

become

1956

have not felt undue

nation's economic

address by Dr. Ensley before the
Annual Agricultural Outlook Con¬
ference,
Washington,
D.
C.,
Nov.
28,
1955. The views
expressed are those of

resent

with

Many must be

modern

groups

.

the
the

way,

Application of the surplus to
reducing the $279 billion Federal

*An

to

now

Since

cession.

and all govern¬

at
•

to

more

possible by tech¬

advance.

these

eco¬

cally justifies tax reduction.

3?rd

ways

the

and

construction in

>

better

world,

Credit

per¬

perhaps a tendency
place too much confi¬
Monetary policy in recent years dence on monetary policy alone
has regained much of its former as an effective stabilizer,-forgetting
prestige. Flexibly used, it ; can :that it is not a perfect or complete
help dampen excessive demand tool in itself but only one of sev¬
eral. While it has slowed, it cer¬
for goods and services in booms,
and
it
can
tainly has not stopped the rise
encourage .economic
expansion during periods of re¬ in industrial prices during recent
us

monetary

satis¬
of the increased lei¬

time made

reeducated

and
us

and

turn

when

now,

Economists

today

lion, and the administrative deficit
may

free

to; make

education, health, high¬
and similar programs?

to the conclusion that it automati¬

Expenditures

sure

use

a

make

to

port for

$63.8 billion, receipts at $62.1 bil¬

$1.7 billion.

Let

which

plans for high and rising levels
expenditures for plant
and
equipment and non-residential

restraint

Monetary

only

priority should be given to reduc¬
ing taxes as compared with re¬

gence

mated

prospect

questions of fiscal policy. Should
a
prospective budget surplus be
regarded as the occasion for de¬

deferred

Federal Fiscal Problems
A

This

factory

nological

immediately ahead.

humanities

the

sciences

not

policy,
;

and better educa¬

more

us

for

1965."i

convincing that
scientists, mathe¬

•

in

present

estimated

lags
.

of

were

-

tion

from

expected
incomes

and

The

may

of

Federal tax rates at levels of out¬

maticians, and skilled people to
conceive, operate, maintain and
improve .our modern technology.
We need

a stable price level,
anticipate reduction in
"perhaps 15 to 20% be¬
the hypothetical yield that

could

put

In¬

But part of the effect
on expenditures may

later.

owners

of

be

available.

made
are

haps justified, but later when they^
may
be needed to sustain eco¬
nomic growth. Present indications

where op¬

the
The recent Joint
are

Economic Committee hearings on

in

years

low

con¬

plant and equipment and inven¬
tories,
and
by
potential home

trends, of course,
If the world politi¬

would

taxes

Residential

result
in
reduced
spending by state and local gov¬
ernments, by private business for
occur

below

areas

now

national average.

citizens

sustainable rate of long-term

we

educational

opportunities for everyone; and
particularly for children in
rural

that
rate

prices.
felt

be

maintain

and

national disgrace.

is

restraint

of

cal situation does not worsen, and
if we continue economic growth

been

*

economic

hold the key.

more

prepare

bud¬

has

example,

for1

needs,

up

during the next decade
good. International conditions

and

prt-

to match
our
economic,
military
security,
and cultural

Favorable

a

school

are

gram

the coming year, therefore, is for
economic activity to adjust to a

therefore, in

real

a

undertaken. From

reductions

'

income.

stabi¬

overall

rising, which di¬
rectly intensifies the agricultural
cost-price
squeeze.
We
would11
hope that these credit restraints
would merely postpone expendi¬
tures to a later time when they
could be made without pushing

tax

It should
be
emphasized
possibilities for Federal tax

relative to the growth of the
nation's
population, production,

social

should result,

and

general

the

less.

costs

terest

insights into the major di¬
which tax policy should
follow to meet the nation's growth
requirements.

years

and

ever

policy

credit
continued un¬

of

being

While

credit

of

rections

been low in recent

have

the like

highways

tax

our

is

feeling the pinch, and
even
though financing terms are
relaxed, housing starts will fall
unless a relatively large volume

fresh

the

Expenditures for

health,

education,

greater than expenditure changes
on the basis of present programs.
economic conditions

enable

to increase its long-term

of growth.

rate

to

of

tight¬

July.
policy

the

none

study of the
system and

thorough

the

of

were

struction is

this inquiry there should emerge

tion in recent years to government

economy

most

economics

terms

lizing effects are desirable, im¬
portant economic problems result

and tax

Federal taxes

gate national demand for full em¬
ployment and for defense, econ¬
omists have given too little atten¬

ceipts

appreciably

of

in

abated.

con¬

Committee, under the Chairman¬
ship of Representative Mills, will
begin extensive hearings on the
relation

exercising

of

programs

restraint

One week from

policy to economic growth and
stability. We believe this will be

population in the labor force is
relatively high. The challenge for

be

of

matter

a

In their preoccupation and
concern
over
maintaining aggre¬

wise, the participation rate of the

public

.

and

the

that

be

concern.

with

conducted

other

and

The

today the Subcommittee on Tax
Policy
of
the
Joint
Economic

omy.

The

for

also

should

expenditures designed to meet the
needs of our rapidly growing pop¬
ulation and our expanding econ¬

programs

ened

may

tinuing

same

It

steps,

Open market opera¬
been

objective

FHA-VA

be needed to insure
balanced growth in the economy

pur¬

have

same

visions

discrimina¬

and

changes

of

restraint. The down payment pro¬

The

pf the tax load.

restraint.

of

series

a

10 days ago.

the

the

in

direction

taken

tions

in¬

inequities which call
for correction. The possibility tliat

surplus to immediate tax reduc¬
tion may further postpone Federal

difficulty of hold¬
ing defense outlays to the goal of
$34 billion, and because prices of
goods and services the government
buys are rising.
On

eco¬

or

are

be higher than this estimate both
because

tions

time, we should
recognize that applying a budget

insurmountable.

Economic growth is the current
theme

Holds these problems

areas.

excess

shifts

perhaps,

the

System has

in¬
cluding raising the discount rate
from iy2% last spring to 2J/2%

changes

to

structure

tax

tax structure contains

power.

the

At

to absorb

Federal

the

distribution

the

significant increases in

taxes

chasing

lems of agriculture, and (4) problems of low-income families

chronically depressed

in

sulted

consideration

cluding,

board, and took
many
persons
off the tax rolls.
The ensuing inflation has now re¬

however, "a $400 billion national economy is already in sight"
Selects as problems facing the national economy: (1) Federal
fiscal problems; (2) monetary and credit problems; (3) prob¬

does

recession, the Fed¬
moved

a

Reserve

has

reduc¬

Federal
receipts,
of
not preclude giving

course,

serious
in

prematurely cut income

across

eral

the

in

total

ing

do well to study the
experience of Great Brit¬

from

vances

pro¬

and

Congress

Caution with respect to

April, just before - a
general election, the British Gov¬

Congressional economist, in expressing view the economy will
not expand in 1956 at the same rate as in current
year, says,

the

for

nation.

of the economy.

ain.

the Economic Report

positive educational

a

gram

We would

recent

United States Congress

and

with

pass.

event, the Congress should
move quickly to provide revenue
adjustments
the
appropriate to

By GROVER W. ENSLEY*
on

the months

as

In this

Economic
Staff Director, Joint Committee

change

may

Cuirent Problems of

13

(2425)

Walston & Co., Inc.

page

20

t

FA

The Commercial and Financial Chronicle

(2426)

.

.

Thursday, December 8, 1955

.

Manhattan Bond
Investing for a
!

j

Ask SEC Annuity

mutual fund, the primary ob-

a

Sales of mutual fund shares set

jective of which is to provide an
investment in a diversified group
of bonds, preferred and common
stocks selected because of their
relatively high current yield and

i
I
I

reasonable expectance of its con-

|

Itinuance
regard toandtheother
risk
involved,. with
Prospectus

I

I

I

j
-

obtained
investment dealer or:

information

I

front your

be

may

Securities

National

s

New York 5,

Broadway,

j

J

to represent a very imsegment of the financial

grown

porant

Walter L. Morgan, Pres¬
Wellington Fund, stated
here. Mr. Morgan said that assets
of all investment companies now
exceed $8.5 billion.

scene,"

of

ident

Morgan, speaking as chair¬

Mr.

of the investment companies

man

of

committee

convention
the Association that one of the

of

significant problems affect¬

most

ing the securities business

is vari¬

able annuities.

BALANCED FUND
Quarterly Dividend

believe variable

practical purposes, a security
account.

all

and in fact an investment

STOCK

Dividends
ers

at

Quarterly Dividend

4:30

24 Federal

Fund,

Inc., mutual invest¬
affiliate of Investors

Inc.,

Services,

Diversified

Incorporated

Investors

of

assets

net

fund

ment

rose

$87,063,059 to $133,357,772,
increase of $46,294,713 during

to register.
"States
licensing
of
securities
salesmen, and since variable an¬
nuities fall within their definition
of 'security,' salesmen of variable
be

required

should

annuities

be

licensed

as

Growth

ended Oct. 31,1955,

of

the

of

the

during

shares

new

through

Fund

reached record .proportions.
increase of 62% over net

an

sales for the previous year.
About
year

of the sales for the

38%

under report represented ad¬
in

investments

Fund

the

by its shareholders, exclusive
number

The

of

shareholders at

of

the fiscal year-end was 37,000, an

fund whose

increase of 8,500 over the previous

hjcctivcisto relarge anlNCUMk

comparable

ainaWe

717,

available

from

investment

organized,
President
out.

dealer.

on

Tiie Parker Corporation

number

of

shares

has

than doubled in the 10 years
Investors Stock Fund was

since

each

The

outstanding was 5,486,increase of 1,193,294 for

an

the fiscal year.
Net asset value
more

on

period.

shares

of

P"n"'ial:

prospectus

The

increase

The
Feb.

Harold
of

K.

the

Bradford,

Fund,

pointed

original net asset value
28,

1945,
On Oct. 31,

share.

was

$10

1955,

per

the net

asset value

Berkeley Street

an

Boston, Mass.

$513,213

year.

declared

in

net

value

that

the

for

the

assets

period represented
asset

the

over

the close of the

at

Fund

per share was $24.31,
increase of $4.03 per share over

_

the

net

asset

value

of

$20.28

advance in

an

advised

were

that

achieved

were

against

a background of interest¬
ing developments in
the
bond
market, which witnessed a mod¬

erate

decline

of

IAi

Dt
h>ot*ss

Mining

ver

Toronto.

S.

in

market

Government

values

bonds

and

othter
topgrade bonds.
The
Fund's progress was attributed to
fact that the majority of its

the

bond

holdings

sive

to

were

business

more

respon¬

conditions

and

earnings.

also

included

mon

investment
a

fund

mining

is the latest mutual fund

sponsor

"cash withdrawal plan."

"The

called

Putnam

Fund—Monthly Check Plan" and

be briefly described as fol¬

lows:

investor, through his

—An

vestment

Nov.

account

depositing shares

by

and/or cash having a current

of $10,-

offering-price value
C00

more.

or

—He

may

then request in re¬

with

Address




was

board

new

of

by the Canadian

Research

Director of Research
Administrator

Portfolio

and

of

Mr. Humphrey has

1, 1955.

for

several years.
A

graduate of Washington Uni¬

versity (St. Louis)
Business

vard

common

that

the

two

10%

in

President

of

by

^7/ie

followed

was

weeks

drop

a

courses

at

PUTNAM

stock

common

SeoK^e

of

measured by most stock

as

taken

University.

compared
the Fund

as

stocks,
news

and the Har¬

School, Mr. Hum¬

also

has

phrey

turn

monthly (or quarterly)

a

specified amount

to be sent

(multiple of $10)
himself

to

or

person

any

he

names.

—Each

£/jo6ton
Putnam Fund

secutive quarterly dividends from

investment
the

income.
of

amount

making

the

Net

9

Each

cents

total

account will be

admin¬

by the Second BankTrust

State

Street

for

monthly (or quarterly)

a

Company

service feet of 50 cents.

ized

completely flexible; it can be
terminated at owner's option,
may

be

added

to

at

any

of

50 State

share,

the

year

sale

were

fiscal/

the

these

the

from

of

real¬

and
de¬
capital

year,

clared on Oct. 31, 1955, a
gain distribution of 13 cents p3r
share. This was paid in full shares
asset

value

as

business

Nov.

5,

net

of

—t—
>

'

Fund

profits the

of

the

close

1955,

with

shareholders

having the option of
requesting cash in lieu of shares.

KeystoneFunu
o

fC anadaitcL

A

Axe-IIougliton
assets

$6.02

a

fiscal

year

share

at

last

A

Fund

were

fully managed Canadian
Company seeking

total

$46,252,155
or
the end of the

Wednesday, Nov.

Investment

long-term CAPITAL GROWTH
and certain

30, representing an increase of
14% over the previous year and
43.6% over Nov. 30, 1953, accord¬

figures re¬
management.
totals were
$5.50 a share in

preliminary

to

leased by the fund

The fiscal year-end

$40,573,546
1954

and

share in

or

$32,203,456

or

$4.66

a

1953.

lump

shares)

sums

upon

may

notice,

be

(cash

or

withdrawn

monthly

check

amounts may be revised.

In
cents

the
a

The

Keystone Company

50 Congress

just
in

ended

dividends

the

Continued

local

investment

on

through

firms,

or;

prospectus

on

page

in

City

owns

and

group

HUGH W. LONG AND COMPANY
INCORPORATED

Elizabeth

3,

New

Jersey

describing
d 142

Nddress
State

.....

15

A mutual investment company

supervises

a

of securities.

Investment Dealers by

DELAWARE

DISTRIBUTORS, Inc.
300

funds

me

Keystone Fund of Canada, Ltd.

15.65
from

income and 29.85 cents a share

diversified

Diversified Growth Stock Fund, Inc.

mutual

Street, Boston 9, Mass.

Please send

ar

year

share

Distributed through

Prospectuses available

TAX BENEFITS

under Canadian Laws

Name

time,

Manhattan Bond Fund, Inc.

these

Distributors, Inc.
Street, Boston

in

was

per

for

$402,900

during

from

ing

remain

will

account

—Each

profits

securities

net

istered

it

FUND

During the 1955 fiscal year, the
Fund paid its 66th to 69th con¬

at

Established 1894

_

Walker &

Bullock, Ltd., effective

been Deputy

Columbia

expected from bonds

in¬

dealer, may open an

BULLOCK

.Name

of

36 cents.

stocks selected for their investment

ONE WALL STREET. NEW YORK 5

a

Director

appointed
for Calvin

com¬

quality and income possibilities.
Send for a free copy of the booklet-pros¬
pectus by mailing this advertisement to

CALVIN

Ltd.,

American,

company.

Fundamental Investors, Inc.

offering

diversified list of

in

directors named

Illustrating the greater stability
of capital value ordinarily to be

which

mutual

second

Co., 1 Wall Street, New York,

Deia$tare Fund

a

Company,

A

Boris Gresov, of G. H.

During the same two
weeks, the Fund's asset value per
share, adjusted for the October
dividend, declined only
3 cents,
or
about Vo of 1%.

Diversified Investment Fund, Inc.

is

director

of the International Cobalt & Sil¬

of

prices

Fund Distributors, Inc.

Putnam

per

share at the preceding fiscal yearend.

investment in

Corpora¬
a

Joseph H. Humphrey has been

increases

U,

Electronics

share from $8.12

per

Shareholders
these

&

tion, has been elected

to $8.30.

about

Begins

check of any

* ——

of

fiscal

Eisenhower's illness

For Income

may

Net sales amounted to $28,972,-

798,

and income.

mv

of assets

1954

Avenue, New York, and Axe

Science

reported

of

total

said

security salesmen," he stated.

is

reinvestment of dividends.

200

variable annuities,
called attention to the
report of the Variable Annuities
Committee of the National Asoeiation of State Securities Admin¬
istrators
which
maintains
that
variable annuities fall within the
broad definition of securities un¬
der various state laws and should
In discussing

Mr. Morgan

Theirs

ditional

N

regulation of the variable
annuities type of contract.

an

the fund's annual report shows.

>rff a ft
;^erm GROWTH of

your

Exchange Com¬

Securities and

a

sales

is

National

of Securities Dealers,

increase

an

mission

to offer

year

fund

Board of Governors of the

that net
assets of $25,723,146 at the Oct.
31, 1955 fiscal year end reflected

this

to

recommended by the

as

from

the fiscal year

Investors

A

solution

the

Association
is

State

Monthly Plan

Fund at Peak
Stock

isk

said

problem,

or

regulations."

securities
He

Federal

Fund, Inc., in
report to shareholders
the Fund's 17th year

indexes.

Street, Boston

al

thousands

without regard to

Putnam

I. D. S. Slock

Total

capital

investing public by
of insurance salesmen

the

FUND

Dec. 24 to sharehold¬
P.M., Dec. 9, 1955.

payable

of record

Control
to

Bond

operations,

within

CENTS A SHARE

15

97tfi Dnnneriitive

be of¬

would

they

approved,

If

EATON & HDIVAIUJ

of

require

of technicalities, we
annuities are, for

"Stripped

19 CENTS A SHARE

95lfi Connect/live

annual

44th

the

told

EATON & HlltVAItll

Investment
of America,

the

Association

Bankers

Dividend Announcement

full

the

for

total

"another
indication
investment companies have

fered

1954,

that

I

the

than

year

|

New York

1955, reaching $1,008,569,000, or

more

Established 1930
120

records in the first 10 months

new

of

&

Corporation

Research

'

annual

covering

Series

i

its

By ROBERT R. RICH

National Dividend

I

Fifth

Manhattan

through

J

Fund Shows Gain

Mutual Funds

Relatively High Income I

Personal Progress
Mrs. Ruth H. Axe, President of
Axe Securities Corporation, 730

Broadway, Camden 3, N. J.

Volume

182

5488

Number

.

The Commercial and Financial Chronicle

.

.

15

(2427)
r

Continued

jrom

tions from capital gains and $994,in dividends from invest¬

14

page

the five-year period 1948-52, while

425.48

the initial campaign was

ment income.

i Mutual Funds

The

capital

large

were

clared

distributions

from
net
profits
paid to shareholders.
The
figures are adjusted to reflect a

with

were

two-for-one

stock

split

two

16, 1955... The fund now has nearly
16,000 shareholders.

was

manner

in

agement's

Cites Need for

He

ownership

of

has

the

conservatively-man¬
Wellington Fund of Phila¬
delphia stated last night.
"This lamentable situation must

be corrected if American industry
is to continue
to

the

prosper,") Mr.

dinner

a

Exchange

meeting
of Beach

Club

stockholders in Amer¬

industry.

"This figure must

raised five-fold if the

requirements
industrial

of

capital
expanding

our

economy

are

be-

to

from

he stated.
introduced

at the dinner

by Charles A. Taggart, President of the Philadelphia
investment

firm

of

Charles

A.

Taggart & Co., Inc., and a mem¬
ber of the Exchange Club.
Wellington Fund's motion pic¬
ture

entitled

America,"

can

in

"Your

Share

shown

was

dinner.

the

small

film

The

in

following
shows

how

and

large investors alike
put their money to work—not

just

investment

few—but in hundreds of

a

securities of leading companies in
industries.

different

and-answer

period

A

question-

followed

proven
a

share

per

income

and

gains, this distribution is

45

dend

Mr.

Fox-Martin's address and the film

pay¬

23, 1955 to shareholders
28, 1955.

Wellington
104th

Fund

declared

its

quarterly divi¬
doing so set record

in

"conserva¬

board

of

declared

directors

a

dend cf 27 cents

of

the

divi¬

quarterly

share from net

a

investment

year-end

income and a special
distribution of 88 cents

Diversified

Investment

share from net

ties

profits.

Fund,

shareholder message ac¬

a

the current 11 cents per share dis¬
tribution brings 1955 payments to
cents

share as against 38

per

cents in the previous year.
The aggregate

distribution
compares

40 cents
the

for

per

share

current

year

also with 36 cents paid

by the fund in each of the years
1952.

-

•

Of the 92 securities held by

balanced fund

on

realized securi¬

Both

dividends

.bonds

and

stocks, while the
issue represented

this

23

consisting
preferred

remaining 55
common stock

holdings.
.

Group Securities' dividends and

gains

capital

business

more

The

in

and

Ohio

distributions

and

are

trends

Kentucky; electricity is served to
a
population
of over
1,100,000,
while gas is retailed to over 850,-

facilities

000.

ducing manufactured gas from oil

of

Electricity

Natural

and

36%.

gas

city of Cincinnati accounts
only about half of the popu¬
served;
other
important

for

65%

include

dletown

in

Norwood

Ohio

and

and

total¬

and

Executor Director

Covington

with

heating,

over

ing attention to the advantages of
the area, as well as to
12 na¬
tionally known products which
are

manufactured there.

gram
with

The pro¬

will be continued in 195G
frequent insertions in "The

Wall Street Journal" and the New
York "Times."

program

samples

Other steps in

Discussing
business
the coming year,

manufactured

in

the

to

area

by calls on

sonnel of the Industrial Develop¬
ment Division.

Newport

and

rural

in

in

areas,

is

for

the

most

dustrialized,
note

that

only

area

surprising

in¬
to

revenues

ac¬

part

industrial

for

Ohio and

14

Since the

is

it

added since the end of World War

The

Kentucky.

Cincinnati G. & E. has

29%

highly

of

the

total

compared with residential and

35%, commercial 25%, and

miscellaneous

18%,
16%

11%.

industrial

division

62%,

domestic

In

the

gas

area

in

reflected

been

higher gas rates to customers, the
cost of gas for residential heating
below

still

is

that

of

other
Greater use of gas is being
in industry, including dur¬

fuel.
made

any

ing the last two years substantial
volumes of interruptible off-peak
business

is

commercial

miscellaneous

and

Industry in

the

business

has

increase

The

iaries

under

are

contracts.

special
and

its

subsid¬

fortunate

in

having

company

4%.

escalator

is widely

schedules which protect some

provisions

in

rate

gas

growth,

good

enjoyed

36%

over

the

Peak

the recent level.

day gas sendout has almost quad¬

rupled since 1945 and is expected
to show a further gain of 31% by
1960.

Plant expenditures are

esti¬

mated at $25 million for next year
and

$38 million in 1957. The com¬
expects to raise about $10
new money in 1956 (prob¬

pany

million

through

ably

serial

and

notes)

$20-$25 million in 1957, probably
through sale of mortgage bonds.
The serial notes will be retired

80%
of sales against changes in cost of

diversified

and

includes

the

pro¬

gas

of

duction

increases

This power pool

generating economy and

reliability of service.
stallation

&

G.

role

of

a

E.

in

has played

promoting

an

Through in¬ growth of the service

different

type

of

important

the industrial
area

by

national advertising campaign.

a

In

$1.20 to yield about 4.2%.
on

Based

estimated earnings of $1.80 this

year

the

price-earnings

ratio is

15.8%.

In¬
This announcement is neither an

$475,-

offer to sell nor a solicitation of an offer to
offering is made only by the Prospectus.

buy

any

of these securities.

The

December 7, 1955

373,900 Shares

prospects

Vine.

Mr. Kulp
indica¬

are

plant and equipment during 1956
will reach

record level.

a

Common Stock

Accord¬

McGraw-Hill survey,
business plans for capital expen¬
ditures are placed around $33.3
billion, or about 13% above 1955.
Iron and steel industry expendi¬
ing

to

the

expected

to

be

automotive

chemical

(Par Value $1.00 per share)

about

Price $12 Per Share

about

about

34%

higher, the Wellington Fund ex¬
ecutive stated.

Copies of the Prospectus may be obtained in any State in which
from only such of the under¬

this announcement is circulated

writers, including the undersigned, as may legally
securities in compliance with the securities laws of

Affiliated
Fund

i

Investment

objectives of this Fund
long-term
capital
and
incons
growth for its shareholders.

Prospectus

upon

request

Lord, Abbett & Co.
New York

—

Chicago




i

offer these
such State.

Reynolds & Co., Inc.

Common Stock Investment Fund

•re

—

a

followed
prospects by the per¬

selected list of prospects,

tions that capital expenditures for

and

A

the

include the mailing of
or
symbols of product!

pay

of the

for

68%

$5,163,327.23 in year-end distribu¬

for

meet peak de¬
gained wide ac¬

the

of

advertisement ap¬

price rises in steel plates, news¬
print, cellophane and regional in¬
creases in petroleum products.

are

of

to

new

a

electric peak
load having more than doubled
II.
While the cost of natural gas
company also serves at retail 101
during the postwar period; by
other communities, and 223 unin¬ to the company has increased dur¬
1960 it is expected to be about
corporated towns and suburban ing the last five years, and this

and

Kulp reported further evi¬
dence
of
inflationary pressures
during the period evidenced by

higher,

up

but

System

as

Mr.

72%

figure is made

from

dwelling units gas
heated.
Some
118,000
gas-fired
central heating plants have been

Mid-

000,000 Wellington Fund stated in
a study of business conditions. -

tures

total

purchased

Gas

has

Gas

ceptance

lation
cities

is

maintained for pro¬

are

propane

mand.

The

gas

Columbia

the

64%

constitutes

and

revenues

the TVA system.

con¬

take-home

vestment Committee of the

being paid

are

the

generation of 5.6% more electric¬
ity in 1954 at 4.4% less cost for
coal than in the previous year.

city of Cincinnati

areas

station permitted

re¬

was

reaching new all-time high levels,
A.
Moyer Kulp, Vice-President

than 35,000 shareholders.

ling $6,157,752.81
to

the

serve

new

but

double spread ad in
the Oct. 17 issue of "Time," call¬

pared with 12,097 in 1954. Econ¬
effected by the operation
the

housing,

The first

peared

omies

subsid¬

its

discontinued

possible shortage of

cently renewed.

a

quality coal. It is estimated
per kwh will be 11,600
in the calendar year 1955, com¬

year

a

Fund Forecasts

pointed out that there

Oct. 30, 1955, 37

securities

senior

14

and

Beckjord Sta¬

possible to burn

that BTU

Divi¬

of

and

v.

ployment

companying distribution recently
of the fund's fourth quarterly 1955
income dividend, announced that

of

1894.

new

expenditure

an

with cash generated by tax de¬
ferrals resulting from accelerated
purchased
and
about
68%
soap, iron and
steel,
amortization, it is estimatedpayable Dec. 28, 1955, to share¬ transportation equipment, machine against changes in cost of labor
and taxes. Similar provisions con¬
Capital structure at the end of
holders cf record Dec. 2, 1955.
tools, airplane engines, chemicals,
tained in electric rate ordinances 1954 was 48% mortgage debt, 3%
The 104th consecutive quarterly
plastics,
food
products,
paper,
dividend declared today will in¬
petroleum products, electrical ma¬ afford protection against changes serial bank notes, 12% preferred
volve
the
disbursement of
two
chinery, automobile components in cost of labor hnd taxes to stock and 37%
common
stock
record amounts—$15,900,000 from
and many other commodities.
about 40% of consolidated electric
equity..Share earnings for 1955
net realized securities profits and
The company generates elec¬ revenues. Fuel adjustment clauses are estimated by the management
$4,900,000 from
net investment
tricity in three modern steam sta¬
income of the fund.
are
applicable to 88% of electric at $1.80 and for next year at about
tions with a combined capacity of
sales.
$1.88. The stock has been selling
nearly 900,000 kw; it is intercon¬
The management of Cincinnati recently
around 28 xk and paya
nected with a number of neigh¬

a

Favorable

Sets Dividend

were

in

paid in each

now

lower

1837

of

adjacent

rural

tinued during November with em¬

1953 and

and

as

The

business

company

iaries

year-old

$470,000,000

in

1853.

The

dividend distributions for this 26-

Top Year Ahead

Diversified Fund

40

since

count

tively-managed mutual fund.

tion it is

operating as a small
supplier in 1843, entering the

dends have been

;

furnace at the

one

coun¬

boring utilities and indirectly with

showing.

Inc. in

gas

incorporated

was

Kentucky counties.

consecutive
and

fund
was

began

fourth-quarter cash

of record Nov.

forthcoming from private funds,"
Mr. Fox-Martin

in

Consisting of 10 cents

indicated that only about 7,000,000

be

have

more than
$5,000,000, the largest in the 18-year his¬
tory of the fund, according to
George Putnam, Chairman.

able Dec.

Wellington Fund executive
pointed out that recent surveys
are

which

profitable

declared

it

and

distributions of

ital

The

ican

issues

try:

electric

Group.

cents per share from realized cap¬

Haven.

people

"an

—

George Putnam Fund of Boston

aged

of

of

Cincinnati Gas & Electric is
cf the oldest utilities in the

with

then temporarily

because

labor

this
man¬

rising
market to others presently offer¬
ing better values."

securities in American
companies,
Mr. Milton
Fox-Martin, an exec¬

Fox-Martin told

recommendation

especially

in this country are
sharing in the
fruits of the thriving American

,

in

with

also

those

Only about 10% of the families

of

reinvested

accordance

area

$400 million for new plant
equipment.
The
campaign

was

Cincinnati Gas & Electric Company

in prog¬
industries moved

new

over

and

By OWEN ELY

in¬

amount

pointed out that "The
substantial realized gains repre¬
sented by these distributions re¬
flect profits taken in shifting from

Shareholders

utive

the

into the
of

of

Seventy-

extremely satisfactory result," ac¬
cording to Herbert R. Anderson,
President

through

of

13

on

funds.

percent

value,

129

ress,

Utility Securities

de¬

be

asset

at

optional,

21

volved

Fox-Martin

economy

gains-distributions

enough*to

shares

cash

Group's

Sept.

on

in

Public

Atlanta

—

Los Angeles

Hornblower & Weeks

Paine, Webber, Jackson & Curtis

Laurence M. Marks & Co.

Francis I. duPont & Co.
G. H. Walker &,

Co.

Bache & Co.

"

Goodbody & Co.

The Commercial and Financial Chronicle

(2428)

16

THE MARKET... AND YOU
The old,

that!

familiar story all

that it

the rails

was

the

were

drag on the
buoyant industrials because of
their refusal to get
the

note

new

was

that

the

switched
brake

industrials

places and

had

were

the

the market because

on

of their

going. But
again this week

refusal

to

penetrate

decisively the September
high.
if

*

if

Once last month the indus¬

trials

approached to within

hair of their old

a

peak in the

average, but turned back
without breaking through the

In

this

week's

to the ranks of erratic

trial

suffered

average's yield well back

above

if

if

issues
its

available

less

at

than

working capital figure.
story of issues "worth

The old

if

than

dead

more

For

alive"

has

specific situations, the
been very quiet since 1953
dividend meetings
It all served to
biding the year-end
but in this issue the six-point
were still the most potent fac¬
technicians
back
into
the
narrow band in which it has
limelight although they pre¬ tor, with Revere Copper,
held
all
year
didn't even
sented a front that was far Union Bag, North American
from being unanimous. The Aviation and J. C. Penney equal the net working capital
at the peak. The best price so
various indicators were suf¬ somewhat prominent on cha¬
far this year was around $34
ficiently vague so that those grin, while Endicott Johnson
looking for a topping-out of joined the long lineup of against working capital of
the rise could find evidence those that found cause for nearly $39.
if

if

it. Others, how¬
ever, had their pick of miti¬
gating factors that made it,
at worst, only the preliminary
feinting in a real test.
if.

The

by

if

if

automatic

dividend

trim

counted for all but

nies

of

the

day

the

made

payments
a

ac¬

few pen¬
loss on

eventual

that the intra-day
reading was lifted to a peak
never

before seen,

cheer in

a

*

payment increase.
Some

attention

was

Dividends

Record

being

given the oil well supply is¬
generally more sues where, again, on at least
than lived up to expectations
a statistical basis, the current
so far. For the Big Board is¬
prices are above-average. Na¬
sues, the November score was tional
Supply, for instance,
the best in many years with
sells at around seven times
Dividends

less

no

than

151

increased

payments and 483 extra pay¬
ments.

last

For

year

to 62

the

same

the increases

and extras to

month

came
363. The

earnings, well below the
11-13-times-earnings "aver-

above the

general market as

reading December story is still needed well as the blue
chip norms.
above the 490 mark which to round
out
the
complete Halliburton Oil Well Cement¬
goes into the records where picture.
Last year in this
ing has also been eyed a bit
the hourly postings do not.
month 72 payments were
more
if
si;
sic
generally by the market
raised and 422 extras voted,
commentators. It, too, has suf¬
The fact that the average
leaving a good bit of room for fered from the highly com¬
had returned to its historic
making this one of the most petitive conditions in the in¬
peak after a rather wild two satisfying dividend seasons of
dustry with their pinch on
months of seesawing failed to all time. Last month
only two profits, but is expected to
bring out any pronounced listed companies omitted pay¬ boost net
comfortably over
pickup in offerings, as a re¬ ments and four reduced the last
year's
figure.
sistance level of this nature amount, which is a low-water
Aircrafts Ascend Again
might be expected to do. Even mark for many years.
Aircrafts, well-deflated far
market

having been sold, this advertisement

appears as a matter

of record only.

75,141 Shares

Empire Studios, Inc.
(A Florida Corporation)

Common Stock
per

share)

years,

particularly

In

recent

have

tion

become

provisions

increasingly

important;

evidenced

as

in the

Dividend

Corporate Profits Provision for Depreciation
and Amortization

after Taxes

Payments

(in billions)
1946

$5.8

$13.4

$4.2

1951-

18.7

9.0

S.l

1955

19.5

14.0

10.5

(estim.)_.

Accelerated

amortization

reaches very high

in

excess

of

normal

depreciation

amounts, about $55 million, or about 90 cents

per share, after taxes, in the case of Union Carbide this year. A
principal effect of the high rates of depreciation and amortization

is, while depressing

current

earnings,

to

represent

a

source

of

internally generated cash for coming needs, and to gain plant for
increased future profits.
For the

lay investor, uncertain concerning the realistic impact

of depreciation and amortization charges, it
to the

behooves him to turn

security analyst for expert interpretation of this factor.

Where

holding company is involved, be sure to look at the

a

consolidated statement, with intra-company transactions eliminated.
In the case of companies expanding through merger or change
in capitalization, concentrate your attention on

the final earnings-

per-share item, bearing in mind that the net trickle-down consti¬
tutes the simple hard-boiled investment test.
Looking at the Balance Sheet
The

balance

sheet, after leaving the incqme
important facets.
Vital to the investor

items, contains

the current
(including cash, marketable securities accounts receivable,
inventories), as contrasted with the fixed assets. Fixei assets,
as
evidenced by the price performance record over the years,
usually |mean very little investor-wise. On the other hand, while
tnere
can
be no assumption of liquidation, a high "net quick

many

are

assets

and

liquidating value"—the amount of current assets (often with large
cash-and-equivalent) less all liabilities including long-term cjebt
and preferred capitalization—does offer advantages.
It enhances
long-term safety. It implies larger dividend pay-out, other factors
being equal.
It harbors a potential of some unseen benefit (a
Wolf son

always

may

come

along to fasten

on

a

discount situa¬

And last but not least, is the investor's psychological re¬

tion).

from an impregnable balance sheet, whether or not the
capitalization sells at a discount (that is, whether "the
company is worth more dead than alive.")
There are a number of miscellaneous additional items which,
where possible, should be weighed by the shareholder as:

assurance

equity

Unfilled orders.
Current

and

contemplated expenditure

on

new

plant.

Proportion of export business, with exchange restrictions.
is

It

sometimes

posed by SEC and Stock Exchange reporting and general disclos¬

planes.

up

more

Douglas,

a

far-

which

after

posting a peak above 90,
only all the way back
the ladder but even managed
an
appearance on the list of
was

ure

regulations in the

case

slashed down to the 60s

was

not

highs this week. Boeing

has fared almost

as

well and

ing its 1955 top, nevertheless
has rebounded to the 70s after

posting

low

a
*

if

for

the

year

*

A similar case of
longdepressed issues managing

of registered companies.

The Intangibles

Besides

the

quantitative statistical data, the company re¬
all-important intangibles, calling for subjective
reaction—for playing-by-ear. In the case of "growth" companies:
the historical record of growth is of course
plainly set forth;
but what are the assurances or prospects that it will carry over
into the future?
And are profit margins likely to keep pace
with growth?
port

contains

'

seriously threaten¬

below 55.

Petersburg, Florida

special

by

following table:

,

242 Beach Drive North

swelled

switch of domestic airlines to

and somewhat

while not

Gerard R. Jobin Investments, Ltd.

production during their

total

reaching popularity, particu¬
larly for those sharing in the

new

(Par Value $.50

the estimated

permitted by law, amounts set aside for depreciation and amortiza¬

general
upset of Septemberhave worked

over

asked, still, whether company reports are
truthful; whether (particularly in bull markets) earnings are
"hidden," or perhaps over-stated.
The proper definite answer
is a resounding "yes" as to truth — with management's ordinary
honest inclinations buttressed by a multitude of safeguards im¬

October,
new

jet




actions,
sinking spells
making the merger
some

useful lives.

in advance of the

St.

are man¬

newcomer

Observations...
plbnt facilities

age" elsewhere, qnd its yield
of above 5% is comfortably

a

All these Shares

the oils

even

no

—

gong.

support

and

Dye,

mark and the aging currently to place a despite
earnings reports are candidate or two in this select rolls and the fact that the
sure to make the
price-times- group with fair regularity, company has mustered an¬
within the components of the earnings level a moderate one, notably Richfield Oil, Hous¬ other preferred dividend. The
even below that of
a split candidate — and
1946, when ton
30-stock index, the readings
company
has formulated a
the 1942-46 bull swing topped Tide Water.
weren't too clear with some¬
new
recapitalization plan, it
if
if
if
out. As a result, confidence
thing of a fair division being
was
announced, but it was
that the market is not at any
Cement issues continued to
maintained between plus and
reflect the belief that sooner indicated that it will be an
minus signs. New highs are danger point was high.
or later an ambitious nationexchange proposition. The de¬
A Better-Grade Bargain
holding a comfortable lead
w i d e
highway construction tails were not spelled out so
over the new lows, and rails,
Among the market students
will be necessary the easiness in the stock had
which posted their quarter- there was some definite cull¬ program
and
they were represented
century top a couple of weeks ing out of the better-grade
little specific behind it.
ago
have been maintaining secondary issues including frequently in the new highs
[The views expressed in this
column, General Portland,
slow but definite headway on some of the rail
equipment
article do not necessarily at any
Lehigh Portland and Lone time coincide with those of the
the upside after consolidating
shares, the pharmaceuticals
Star managing to do the tricks
their position.
"ChronicleThey are presented
that have been working on
as those of the author only.]
simultaneously.
Bethlehem Steel had its day newer preparations, and even
in fame from a Sunday night some of the long-depressed is¬
tip that made it at least a one- sues in the textile field. The Continued from page 5

through the 487 level but re¬ meeting isn't due for nearly
treated before the closing two months.

to

co,

United

the 4%

more

The Technical Expectations

Thursday, December 8, 1955

The increased
payments are new highs for something of a
guaranteed to boost the indus¬ change was American Tobac¬

day wonder with a fat jump dividend increase served to
to a new high, although little spotlight
Endicott
Johnson
determined test, the average in the
way of specific news is which, as was duly noted, is
worked more than a point around and the next dividend one of the few
better-grade

level.

..

excellent

STREETE

By WALLACE

year was

.

/

Corporate Personality
The

of the report gets an answer to such
revelation of the company's personality—an

reader

questions,
impression
tr at is given wholly intangibly. This goes far to establish the cate¬
gorization of the prevalent Blue Chip-ism; and, of greater practical
investor profit (avoiding Chip overvaluation), discovery of the
pale Blue Chips, that is, the Blue Chips of tomorrow's market.
as

well

as

(Other factors in the management-stockholder relation
be included in future

instalments.)

will

Number 5488

Volume 182

.

.

The Commercial and Financial Chronicle

.

Economy to Attain New High Peak in 1956
Economists of the Prudential Insurance

By ROGER W. BABSON

for

rise of $15

a

Mr.

Babson, after pointing out the chief causes of monetary
inflation, calls attention to today's new factor, namely, the
psychological cause arising from a war-scare that has led to
heavy defense expenditures. Says saving has become a lost

billion pver

1955. Predict upsurge in consumer buying and
a heavy volume of capital expenditures that will put the
nation on a new economic plateau, but with consumer prices
"inclining upward."

J*
jf.

and luxuries

art

salary component of personal income will rise by about 5Vz%.
M. Shanks, President of the Pru- Although the other components of
dential Insurance Co., the nation's personal income — rent, interest,
to

detailed ecoCarrol

a

nomic forecast released by

and

profits — will not rise as
rapidly, ,total personal income will

consumer

port.

There

flation.

many reasons

the fact that inflation

comes

the supply

exceeds the

of

money

pay off

Carrol

Shanks Gordon W. McKiniey

M.

establish
estabiisii

will
will

economy

another
anotner

high in 1956 with the value
of all goods and services produced
reaching an unprecedented rate of
$410 billion.

new

.

ti?JiTrepreSen^
an increase of
over the estimated cur-

$15 billion
rent

rate

record

of

spending by
the public
pnvate business and
Federal and local governments.
An upsurge in consumer buying,
a heavy volume of capital expen¬
ditures for industry and a rise in

supply
goods.

ities

will

be

economic plateau.

the

says

will

be

an

previously incurred debts

credit

they did in 1955..

higher

The Prudential economists
don't
overlook the
probability of a reduction in personal incoriie tax

and

»?£®S
this

the

an

I9.56 ?nd point out that

might add

about $2

billion

debt,

a
3

personal

sfowei rise in consumer

7ncreaseT

the

effect

far

thus

there

successful,

indications of increased

are

price

been

in
the months
They conclude that con-

pressure

ahead."

cu

ing b

viding

*

nr

%* support to overall

p

y*

.

.

the

of

one

nmv0^
omy is

most

indi-

convincing

the confidence

the fu-

in

ture exhibited by businessmen.

Anniversary

For

eomnefitivp

ecnnomv

_

amu

S°yei &

t

C°"

LTS
ThereTs also erowfng
™

that

eiti

week

annivpruaw

one

.

priations

eanital

nlanned
for
planned for
little weight given to intermediate

in

cyclical fluctuations
activity.
"These

business

ities

attitudes constitute

new

changes
in our econpmy in. repent years."
In
comparing the major segments
of
1956's
economy
with
those

of

1955's, the report fore-

casts;

Noyes to-

personal income.
(2)
in

Noyes, who founded the busi-

sen

WhLUn,dT,the
Pame ofne^PbS,
White & Chamberlm
in 1915
are

active

in

consumer

continuation

expenditures
the

of

and

a

the

We

?

Mnra

?

■

M

Jr., Robert

R.

Spence, Francis D
Dudley H Bradlee

and
s.

are

Williams,

Clayton F

Tr

*9

hillion

at

by

an

<;tatp

increase

and

other

tial

Total spending on residen-

construction

current

old

"We

storv

will

high levels,

remain

even

_iroj

Banks

Jr

c+n?f

.

,

labor

force

will

at

as
as

Asso¬

of

America, National

borrowed
one

em-

the

labor




Br®.s11.denTt»'
!

T

V

tm,.'

money *

have

would

Although
Since

World

War

p

xi-

c

w

As-

has become operative.

be"calfed
it

but

about

is

'lC*'

VlVe

comin"

which officers f
wjji be eiprtpd

?

r

T.

R

due

c

B^
'+
^
P frldfpfchPa^r
eR^s*
nfU™2 w,i*f

pbi]b

t*o

.

null^

rather

&

Co

SjSh

Duncan

N.Y.

than

neither

ill in?
Phllhps
and
of Janney
&

Ph

and

Security Dealers

30th Annual Dinner

these

The New York

Association
annual

will

dinner

Security Dealers
hold
at

their

the

Club

of

Los

Program

Thursda

the

Stock

and

0f

the

Borrbs"

"Atomic

genBomb°" ai^

HI.

"Hydro-

scare

us

into

nnn
u

innorent

IJ

1?nocent Ui

P

S

defensl

political

portant

would

Pe°Ple would

T

Rpanp

Pa^tersnn RnHriin^

Beane, Patterson BuUd.ng.
~

influence

—

one

_»

a

This

Republican and Democratic leaders recognize. This is
that in order to "stay in" or "get
in"

office

promise,

is de-

announcement

is neither

an

The

they

full

must

have,

employment

or

offer

to

sell

nor a

solicitation of

an

offer to buy

any

of this Stock.

offering is made only by the Prospectus.
December

8, 1955

80,000 Shares

Reading Tube Corporation
$1.25 Cumulative Convertible Preferred Stock, 1955 Series

3fea^

(Par Value $20 Per Share)

evening

•

Price

$25.00 per Share

Chairman

may

be obtained in

any

State only from such of the undersigned and

other Underwriters named in the Prospectus as may

lawfully offer the securities in such State.

Los

Angeles will be featured
by entertainment and a festive
dinner in
keeping with the hoU!

day

season

Emanuel, Deetjen 8i Co.

Joins B. C. Morton
(Special to The Financial
Chronicle)

BOSTON, Mass.

—
Abraham, I.
Jacobson has joined the staff of

B. C. Morton & Co., 131 State St.

Bache & Co.

!

ties business from offices at 1125

and Lorimer Street.

I

Exchange

r*

BROOKLYN, N. Y. — John B.
Sullivan is conducting a securi-

NEW ISSUE

Angeles

1

John Sullivan Opens

which both

Saving Becoming a I.ost Art
the radio

army-training.

in

ha?,b2£\^L.";
toThf .rtSfSf
y

forms B. D Armand Co.
the prosperity which I find today
B. D'Armand is engaging, in a
m New York and the other 20 securities business from offices at
cities which we are told are liable 471 Park Avenue, New York City
t0 be destroyed.
under the name of B. D'Armand
In. addition to the above eco- Ca
nomic reasoning there is an im-

'

over

With Merrill Lynch
(special to the financial chronicle)

Surely this is the basic reason for

Constant talk of this sort in the

and

while

ficers

demanding

neoole

This threat our boys are today

being fed by their superior of-

Guided Mis-

siles"

To

is very Hotel on March 9, 1956.
older peo-,

tbe terrible threat of World War

talk

vear

Party of The Bond Club

30th

Biltmore

above

way we

soning. I hate to admit it, but it

Th

to

eifclea' lhe Bo"d Club of

Party
8, at

Dec.

U"

"ssSteVspr^H^ I/S

^chologicaFcause; may be logical

a

reallv

Los Angeles Bond Club

m^teiyYoSng a'meetini™'t
tL

■?'

r»

^
3"il
Proci^onfe*
vlue-i-resiaenis,

Dlinpnn

Ple were once taught, yet it is the
wa3f young people are now rea-

another

II,

important cause of inflation

very

the

contrary to the

New Factor

Today's

sociation of Securities
Dealers and

Security Traders

?

d

rJG B.®afx;

S?^nr3™

lnxiToit

As¬

sociation.

?'

\

v

7+?

w-u

0n

u

i

—

probably remain as long as it
is at present. Unemployment may
be pushed down even below its
present extremely low level.
"On the basis of these factors,
that

at

^
m

aL*

^

PrnHiLo
ngeS' New
°,i"ilBe!la"?e.
as .wel1
the Investment
Bankers

^

grow,

will

estimate

fu«

w

V.S?1"

York

though

though by a smaller amount than
during the past year," the report
forecasts.
"Average hourly rates
will rise and the working week

we

?Jnu+1

prices.

press

i

J

i

?

3

waitin2 until World War 111 when

Copies of the Prospectus
,

"The

*T?x0a,Pge.s.\
w

10-cent dollars!" The same rea- £™thby'
Dunc3n'
Heward are
officers
soning applies to enjoying auto- r*v
7o.
mobiles, TV sets, washing machines, and even luxuries now on

can-

choose between full

.

i3n™ BbdadelPbia"*

this mortgage with these

can pay

ac-

Pie and eat il t00'"

our

Janney,

t

.J"0;'

S ^geles will hold its Christmas

local government
government levels
local
levels.

(5)

can

II

Limhed
Stanton Griffis John
Harold C Strong and

Membprchinc
nrjnrjnai

Frn<?t

(4)

offset

+vV ^Ts

____

p

house and I continue to exist. I D"lle? «<?>•. which will be dishouse
and I continue to exist, I
,
,
Mp„r,
wilr?P
rvant

trade

inventories

j"c^e' Charles and a willingness to be taxed
F' Lea-nan, therefor, we are fed with this

01

Election A Dinner

A probable decrease of $1
billion in spending by the Federal Government, which will be

and my house—then I'll

me

never have to pay the mortgage.

Jr^

_of business inventory spending.

than

It's the

'ii

management.-

rate

current

—

reason-

n'
sl.
G- Bird and Richard W. Heward,

spending.

capital

more

and

IT™1 partners greater expenditures for
L

the National

An increase of $11 billion

(3) A rise of $3 billion in busi¬
ness

nart-

Clifford Hemphill and Jan-

ciation

(1) A rise of over $13 billion in

5

plo.yment with higher wages and things nor the money, and would
higher
prices," or°
get killed to boot*
higher i prices,
or unemployment
unemployment perhaps
*
its with
~
lower wages and low r
Drink, and Be Merry Now"

celebrates

the business, Hemphill

ners,

retail

decrease,

decline

tion

firms of comparable
a^e and size
whose founders are still active in

partners

of the most important

one

for five years"

for

them

both

this latter

Then
the
supply of
will increase, credit and
money
will tighten, wages will
decline, and we will have defla-

jto

anniversary in the securbusiness.
One of the" few

Tan^n

realization

come

blame

To Be Formed
^_T

be

can

five

within

come

- you

wnfarac

mS'
'bprobable
boR'Efact
Iet}—namely:
aT
™
If World
investment must be
reriep^vr c?1
Maloney, Law- War III should now come, the 20
the
the 'S
long dX^with
pull, witn Wafke^W
walker W. iyenS' Blancke Noyes, largest U. S. cities with 30,000,Stevenson,

a

house

indus¬

people are reasoning as follows.
"World War
"Hi
III will
vvxii
wipe
vvx^/c
out
wuv

comes as a result of" boom times
such as are now being enjoyed by

15 not have

N.ew York City,-

•

40th
40th

still

business

a

same
oalHc

goods

Hemphill, Hops

Tr

Broa^Str

-Jl caminTt Sz6 SToS
•

will not

cumulate.

40th

.

.

new

_

__

will

originaf

that

Shanks

circula-

money;

a

the

Since
are

Janney, Dulles & Co.

that the pubJic

=^iC6S
arC
likGly t0 "inCh ^L°P^3tes
/Icfees^t-ioupward."
~
coast. Two of the
They advised Mr.

more

as

that

so

will

do

this

Or else the inflation coming with
^
^st"Jla^e New York and other large cities, or after World War III will cause
$n bmio
in 195V «nrn~
Contrariwise, if unemployment the value of our dollar to go down
strong support tf'overTli increases and advertising appro- to 10 cents. Ip that case, if the

the income tax

III

house

mortgaged for 95% to 100% of the
cost, with from 20 to 30 years to
pay the mortgage. In view of the
talk that "World. War III is inevitable — although
it
probably

tion of money,
which can

W. Babson

Roger

the

inflation.

more

and

credit

in

increase in

lldvc the
lllc
have

Considering the higher
income

which

prices
higher
wages, or (2)

^HLfweMoKinW prnrt wfsMf
mei!?6 hrnt-try'S
le®dinS investstaff ment
and
brokerage
flSf. banking
?a"klng ,and.
brokerage
tirms, this week
cGlphrstp^

have

most

results

public will probably save
of their income in 1956 than

Gordon W. McKmley and his

of Pi Lideiiticil economists, s^ys ttiBt
<
i+u
u
+
"although
'although anti-inflationarv
anti-inflationary efforts
efforts

"free

by

have

and

clear."
Furthermore,
mortgages were written for
a term not exceeding five years.
Now, as a bribe to voters, the
government offers or guarantees

(1)

increase in

government
or
private

to

to spendable income."

mortgage

to pay up

was

buy—without

their shortsighted income
ing?

Bombs, people would
mortgage for only about
60% of the cost of a house. Their

occur

either

re¬

used

War

a

ambition then

to

trial wageworkers who are being
fed the scare threat that World

Atomic

get

above

more

responsible

largely

it

can

in per¬

be reflected in

of

of

and the

outlays for highways, schools and
other state and municipal facil¬
for the nation climbing to the new

of

when

voters

great number of voters

stroying the American habit of
a
thrift,
substituting
therefor
spending craze. Before we heard

for inMost important has been
are

The

spending,

Part

means

are now

$13 billion."
Not all of this increase

•

years,

nevertheless still be up by about
4%% in 1956—an increase of over

sonal income will

the

money—houses, automobiles, and
anything else they want.
This

being bought on easy credit policy to
promote full employment.
Holds this means more inflation.

"

According

prosperity NOW. In order to give
this to the Voters, the government
must supply more credit, favor
higher wages, and make it easier

Causes of Inflation

Company estimate

$410 billion output of goods and services,

-

17

(2429)

Blair 8C Co.
Incorporated

Hayden, Stone & Co.

18

The Commercial and Financial Chronicle

(2430)

by the stockholders at the annual
meeting on Jan. 18. The directors

>

the

declared

News About Banks

regular

quarterly

the

trust

company

stock payable

Jan.

BRANCHES

NEW

OFFICERS, ETC.

15, to stockholders of record
Dec. 12.
The total dividend paid
during 1955 was $3.20. Mr. Flan¬
igan stated that it is manage¬

Bankers

and

REVISED

CAPITALIZATIONS

ment's intention to recommend to
the directors at the next dividend

The

appointments of Russell H.

Johnson

Vice-President

as

and

Lloyd W. Pederson as Assistant
Secretary of the
United States
of

pany

York

by

Benjamin
Strong, President.

Mr.

Johnson,

who

has

been

an

Assistant.
Vice

19

in

51, joined
1928.

in

pany

Russell

He will super¬

vise

H.

Johnson

the

Op¬
erations Department of the com¬
pany.
Mr. Pederson, Senior An¬
alyst in the field of oil, natural
i\as and non-ferrous metal invest¬

joined the trust

ments,
ia

company

#

%

extra

fhare

the

and

*

to

15,

per

dividend

regular

share payable Jan. 3,
record

of

stockholders

1356

Dec.

$2

1955, were declared a
week ago at the regular meeting
cf the Board of Trustees of the
Hew

York.

Company

Trust

States
In

letter

a

of

stock¬

to

holders, Benjamin Strong, Presi¬

dent, stated that a special meet¬
ing
of
stockholders
has
been
for

called

5

Jan.

vote

to

on

whereby the par value

company

cf the stock will be reduced from

£100 to $20 per share.
standing stock will be
from

shares

100,000

of

split

effecting

thus

shares

Strong

5-for-l

a

the present stock. Mr.
also announced that the
intend to declare

Trustees

an

in¬

the
par value stock of 80
share payable April 2,

itial

quarterly

new

$20

cents

The out¬
increased
to 500,000

per

dividend

on

1356.
*

*

have

of

Bank,

Stewart

J.

nounced

on

appointed

been

Vice-Presidents
Manhattan

of

the

Chase

New

York,

Baker, President, an¬
Dec. 1. Mr. Miller is

assigned to special investments and
Mr. Romefelt is a member of the
staff

official

customers

serving
the

in

the bank's
England

New

Miller

Mr.

ftates.

the
in 1929,

joined

bank's credit department
jind three years

later was assigned
to the public utilities department.
He was appointed to the official
Ltaff in
1941
and promoted to
Vice-President

Second

in

Mr. Romefelt also joined the
j

i

3

jan

1929.

by

Advisory

Queens
members

1948.

bank

He served in the brokers'

and customers' securities de-

ad Vice-President

official

r.cw

ounced

were:

in 1933.

Other

appointments
anTo Assistant Vice-

President: Anthony I. Eyring and

Hooper, in the National
and Edward

John A.

District Organization,

William H. Lentz, James
and Alfred R. Wentworth in the International Depart¬
\7. Heim,

V.

Watts

Assistant

To

ment.

Treasurer:

Daniel A.
O'Connor and Samuel Pinkowitz,
3 iternational Department; Howward
c

L.

innon,

and

Brown, Thomas J.

Jr.,

John
ment.

W.

Peter

Corp.; Thomas Goodfel-

Con-

E.

District

George J.

Bitz, Edward A. Klug

Robert

B.

Whitbeck,

Trust

Department. Dr. Paul F. Genachte
was

General

Vice-President and

appointed Acting Director of




the old shares. This
would represent an increase of 30

Island

City Savings Bank; Hanford Main, Ralph C. Persons, and
Henry Z. Steinway. Chemical Corn

Exchange Bank has branch offices
located throughout
Long Island
City, etc., and the bank has nine
other advisory boards serving its
offices in other regions of Greater
York.

New

*

of
7

National

City

announced

York

New

that

si:

*

First

The

Frank

Bank
Dec.

on

T.

Mitchell, VicePresident, has been named also
Deputy Manager of the bank's
Division.

Overseas
has

in

been

Mitchell

Mr.

charge of the South

will

in

succeeded

be

that

assignment by Robert M. Franke
who
was
appointed Vice-Presi¬
dent at the regular meeting of
directors

the

Franke
ant

Vice-President.

also

appointed

Mr.

6.

Dec.

on

formerly

was

Assist¬

an

Board

The

three

Vice-Presidents

as

currently
resident
charge of the bank's

men,'

in

abroad

various

in

branches

They

areas.

overseas

Robert J. Brey-

are

on

fogle, London; John B. Arnold,
Argentina; and William H. Beattie, Brazil.
Clarence V. Horan,
Jr., Manager of the Chelsea Office
in New York City, was appointed
an
Assistant Vice-President, and

the annual

share over
dividend of $3.20 paid
per

$275,000

from

Bank

of

ment's

Bulletin

to

capital

is

primary

£

the amount of
$50,000 has brought about an in¬
crease in the capital of the First
stock,

National

N.

on

J.

to

Bank

South

of

raising

the

21.
*

ing the 2,519,500 presently author¬
ized

isued

and

value

of $20

shares

par

to

5,039,000 shares of $10
value. This proposed change,
is considered to be "ad¬
vantageous
to the stockholders
and the company since it should
result in a wider distribution ar.d
par

he

said,

greater marketability of the stock.
Mr. flanigan also announced that
the directors on Dec. 5 approved
an

employees' profit sharing plan,
wiil be submitted to the
at the annual meet¬

which

stockholders

ing and must be approved by

the

Department. The pro¬
will cover all full-time em¬
ployees.
Treasury

gram

School

Wolf,

Savings

installed

Manager of the
Department, was
5 as the 58th

Dec.

on

member of the

election

of

of The Montclair

Montclair,
Dec.

N.

H.

Mc-

Hugh

Savings Bank ox'

J.,

announced

was

1, by T. Philip Reitinger,

President

Coniiell

Mr.

bank.

the

of

Mc-

Vice-President

is Second

of the

Meropolitan Life Insurance
Company. He is also a member of

Council Commit¬
tee, Yale Engineering School, ar.d
University

Vice-Chairman

National
Yale

is

Mr. Mc-

of

dent

Vice-Presi¬

former

a

Montclair

the

the

of

Engineering Fund.

Connell

Academy

Foundation.

S.

U.

Currency
Nov.
of

that

reports
First

Newton,

West

the
effective

Comptroller

the

22

$

^

^

The

of

National

Bank

with

com¬

Pa.,

capital stock of $100,000 was

mon

£

President

Lincoln,

The

of

Hooper,

W.

John

honor.

his

con¬

gratulated Mr. Wolf in the pres¬
ence
of officers and trustees on
hand for the occasion.
August H.
Wenzel, President of The Lin¬
coln's
Twenty-Five Year
Club,
presented the new member with a
watch.
Besides various other ac¬
Mr. Wolf is the former
Secretary of the School Savings
Forum of the State of New York.
tivities,

:Js

Frank Mullen, First

,

Bank

&

of La Porte, Intl.

Trust Company

enlarged its capital as of Nov. 22,
$600,000 as a re¬
sult

of

Vice-Presi¬

New York
Savings Bank cf Brooklyn, N. Y.,
was elected President of the bank
at

meeting

a

trustees on

the

of

13, succeeding the late Ber¬
nard F. Hogan, whose death was
referred to in these columns Oct.

Oct.

6,

page 1409.
Mr. Mullen joined

£

❖

W.

Jackson

partner

Smart,

firm

accounting

elected

of

member of the board of

a

directors of the Uptown National

fill

of Chicago, 111., to

Bank

a va¬

created by the recent death

cancy

of Ernest C. Dose.

Bank

of

Co.

Trust

&

Rockford, III., the amount having
been increased from $1,000,000 by
dividend of

stock

a

The

Co.

of

its

creased

from

National

Second

Trust

#

capital

additional

$600,000

by

stock

a

of Nov.

as

&

in¬

Mich,

16

$3,600,000, the

$3,000,000 to

realized

Bank

Saginaw,

having been
dividend of

amount.

C.

Arthur

Hemminger

was

elected Vice-President and Public
Relations

First

of

Director

Na¬

St. Louis, Mo. at a

tional Bank in

dent.

pointed four officers in the Cor¬
porate Trust Division. They are

positions of Assistant Comptroller
and
later Vice-President-Comp¬
troller.
In November,
1951, he
was
elected
a
member of the
Board of Trustees and was pro¬
moted to
the position of First
Vice-President in December, 1951.

Valfred

Gardner,
Assistant
Trust Officer, and John C. Claflin,

Among

William M. Crane and William T.

ficers

Hayes, Assistant Secretaries.

Banks of the

and Park Avenue Office.
Directors

of

the

Trust

Farmers

City

Bank

Company

ap¬

J.

*

York

Company

election

the

announces

on

Board

Fogarty to its
of Directors. Mr. Fogarty is

President-Elect and

Continental
rector

of

a

a

Director of

Co.

Can

number

and

of

a

di¬

associated

McDonnell,

the

of Commerce,
*

of

Branch

Company

Trust

the

of

Long Island
Garden City,

N. Y., has been approved by
the New York State Banking De¬
L. I.,

partment. The office, which was
opened in November, 1954, will oc¬
cupy a building at Stewart Avenue
and Clinton Road, Garden
City.
became Executive Vice-President
Fred Hainfeld, Jr., President of
was

Nov. 22 of this year

elected President of the

pany

com¬

effective Jan. 1, 1956.
*

*

Long Island Trust Company, also
stated that the name of the branch
would

*

be

changed

to

the

"East

Office" to avoid any

Garden City

President

possible confusion with the loca¬

of Manufacturers Trust Company,
of New York, announced after the

tion of the bank's Main Office or

Dec.

which is scheduled to open

Horace

that

5

C.

Flanigan,

meeting

the

2-for-l

Bank

Board

of
had

the

directors

approved

n

the

Jan.

new

ommended

the

rec¬

change for action

Manor

office

*

is

resulted in

has

increasing the capital

California

ern

months and

file,

on

ress, on

in

two

these

in

applications

work already in prog¬
three additional offices,—

Los

Angeles, with

scheduled

be

few

last

the

has

now

or

Southern
to

to

plication

is

office

in

Foothill

north

of

Covina

for

Los

Angeles

latest

The

ap¬

Western

First

a

office

main

the

in

district.

of

one

the bank's

be

California

located

financial

Center, located
Azusa

between

Glendora.

and

*

The

sale

*

*

of

'

'

of new
stock by the Bank of California,
$1,044,000

it is noted

by the Treasury Department, in¬
the bank's

creased

of

ance

capital, effec¬

from

11

Oct.

cf the

$10,440,000

bank

incident to the issu¬

new

stock appeared in our

1182.

*

*

*

the Old National
Wash, enlarged

As of Nov. 21,

its

to

the plans

Details cf

issue of Sept. 22, page

of Spokane,

capital

the extent of

to

$1,-

000,000 by the sale of new stock
to that amount, bringing the cap¬

$3,750,000 from $2,750,increase in the

ital up to

earlier

An

000.

capital, from $2,500,000 to $2,750,—
000 by a stock dividend of $250,was noted in our issue of Nov.
*

*

nounced

30

Nov.

on

of Sir Roy H.

Com¬

Toronto,

office

head

merce,

of

Bank

Canadian

The

an¬
the election

Dobson and J. Geof¬

Ltd.

and
Ltd.;

V.

Roe

Canada

Canadian

Car

&

Managing

Director of A. C. Roe

A.

of

Foundry

Company Ltd. and a director of
Hawker Siddeley Group Ltd., both
&

of London,

England.

President

is

Mr. Notman
Mana¬

General

and

of Canadair Ltd.; Senior VicePresident and a director of Gen¬
eral

Corp.;

Dynamics

a

director
Mont¬
Ltd. and

cf Canadian Arsenals Ltd.,

Locomotive

real

Works

Canadian Marconi Ltd.; and

Canada Ltd.

F. Products

S.

Chair¬

Ltd. and

of Canadian Copco

man

Two With

Com¬

PASADENA,

York

Public

Relations

University; and

School

at

Syracuse

Walter

&

with

Hurry,

Bi

Inc.,

n g

h

70

South

a m,

Euclid Avenue.

With Walter J.

Hood

(Special to The Financial Chronicle)

PORTLAND,
F.

ME.

—

Richard

Murphy has become connected

with

Walter

J.

Hood

National Direc¬

a

Financial Public Rela¬

tor of the

affiliated

now

New

Bankers

State

Calif.—Patrick J.

McCool and Brice W. Schuller are

Hemminger

Mr.

Bingham, Walter

(Special to The Financial Chronicle)

member of the faculty of the

a

New
of

in

Association

415

Company.

Congress Street.

tions Association.
*

*

*

Third

The

Joins Frank Knowlton
Bank

National

ber increased its

of

cf
Nov.
4,
it to
$4,000,000 by the sale of $500,000
of

new

to

the

to

stock.

as

The earlier addition

capital

Calif.—Merrill

E.

Onstad, Sr., has become affiliated
with Frank Knowlton &
of

Co., Bank

America Building.

referred to in

was

these columns Oct. 27, page 1768.
$

*

OAKLAND,

capital from $3,-

$3,500,000, has,
further enlarged

000,000

(Special to The Financial Chronicle)

in Octo¬

Tenn., which

Nashville,

Atwill Adds to Staff

*

(Special to The Financial Chronicle)

The

issuance
16

for

Bank

of

water,

Florida^

in

the

U.

of

the

*

A stock dividend of $55,000

Trust

and

City, etc.

Nov.
*

First Western;

has opened seven offices in South-;

of Chicago; Public Relations
Director of the New York State

about

10.

split of the shares of the

company's capital stock and

Stewart

American

of

Director

National

Continental's VicePresident in charge of sales.
He
on

Before

1930.

joining the staff of First National
Bank in St. Louis, he was Public

was

in 1950 and

in

Journalism

York

Relocation of the Stewart Ave¬

Coats, Chairman of the Bank's

Board of Directors.

Relations,
was
graduated
from
the University of Illinois School

For several years Mr.

companies.
Fogarty

of

pany

*•

bank's Presi¬
who joined

the

in June, 1952, as Di¬
Advertising and Public

bank

rector

of

an¬

office,

Nov. 29 by T.

on

Mr. Hemminger,

State of New York,

*

nue

A.

29, according to William

Bankers

of New

Dec. 1 of Thomas C.

Nov.

Relations

etc.

Irving Trust

on

the Investment

Brooklyn Chamber

$

*

and af¬
Of¬
Association of The Savings
his memberships

filiations are

P.

open

California

announced

was

ger

%

s|i

meeting of the Board of Directors

will be assigned to the 46th Street

permission to

Southern

it

frey Notman to the bank's Board
of Directors. Sir Roy is Chairman

$500,000.

*

*

Trust

State

*

National

&

application with the
Banking Depart¬

an

for

other

capital of $1,500,000 was re¬
ported as of Nov. 9 by the Illinois

the bank on

through

Bank

17, page 2097.

*

*

*

as

*

000

the ranks to
become
Assistant
Secretary
in
1932.
He subsequently held the
worked

*

Western

A

Nov.

he

ment

Bank

in
Touche,
Niven, Bailey & Smart, has been

the

that

30, 1914, as a SecretaryStenqgrapher to Charles J. Obermayer, the first President of the
bank. During the ensuing period,

First

$300,000 stock dividend.

a

A.

Company of San Francisco, Calif.
has filed

from $300,000 to

Greater

The

of

dent

*

$11,484,000.

National

First

The

*

Presi¬

Cashier.

tive

Twenty-Five Year
Sayings Bank

Brooklyn, N. Y. at a luncheon

in

the

Addison

as

port, Ta.

Club of The Lincoln
of

indicated

N. A. of San Francisco,

*

The

$300,000,

$200,000. In the

placed in voluntary liquidation,
having
been
absorbed
by the
i copies
Union bank cf McKees-

*

*

❖

J.

Peter

The

Connell to the Board of Managers

21.

as

organization

California

*

*

Nov.

Wakeford, and E. A. Branson

River,

capital from
$500,000 to $550,000 effective Nov.

the

is

dent

New

of

announced

and the surplus as

cf Nov. 29.

as

Thursday, December 8, 1955

.

.

$220,000

National

Y.,

£

on

the stock
during the calendar year 1955.
The split of the
bank's capital
stock,
Mr.
Flanigan
explained,
would be accomplished by chang¬

Office

American District at Head
and

$3.50

cents

Manager, Long Island R.R.; Jarvis
S. Hicks, Jr., Vice-President, Long

Ramberg

Rivers, Jr., Na¬
Organization, and
C. Senholzi, Bond Depart¬
To
Investment
Officer:

Thomas

tional

and

Brennan,

G.

1'rank

Clough,

H.

President, Fairchild Camera & In¬

artments and was appointed an
Assistant Cashier in 1930 and Sec-

j

Other

Board.

John

are

the

of

Chairman

named

been

1

c

been

our

*

William S. Miller and B. Walton

romefelt

has

Borough

desire to con¬
tribute to that growth by provid¬
ing
the
best .possible
banking
service." Philip L. Becker, Pres¬
ident of American Chicle Co., has

an

the

the charter of

cmendment to

offices

of

network

our

that

low,
of

dividend

cf $3.50 per

United

for

strument

1941.

An

Dec. 1 by N. Baxter

on

prompted

com¬

meeting in March, that the annual
on
the split shares be

$1.75 per share, or the equivalent

*

Establishment of a Queens Ad¬
Board by Chemical Corn

_

N.

dividend

of

Board

since

the trust

'

and the formation of an Advisory

Presi¬

-

dent

*

Jackson, Chairman. "With branch
offices throughout Greater New
York," Mr. Jackson said, "Chem¬
ical Corn Exchange Bank is ba¬
sically interested in the economic
development of each segment of
the area.
We expect Queens to
continue its
impressive growth,

on

1

*

announced

were

Dec.

sion.

Exchange Bank of New York was

New

announced

Divi¬

Energy

visory

Com¬

Trust

Atomic

bank's

the

Lincoln

the

Buffalo,

dividend of 80 cents per share on

CONSOLIDATIONS
NEW

of

.

a

Clearwater,
S.

charter

City

was

on

National
at

Clear¬

made known

Treasury

Depart¬

MIAMI

BEACH, Fla. —Haskins

L. Chilton is
Atwill

and

now

connected

Company,

Lincoln Road.

Inc.,

with

605

<s>

Volume

182

Number 5488

.

.

.

The Commercial and Financial Chronicle

the degree of

scarcity that will de¬
velop will be sufficient remains to

Goods Shortages in Great Britain

about long ago

Dr. Einzig points out that

an

indication of inflationary condi¬

shortages in certain essential
Says the volume of purchasing power has
than the volume of goods, notwithstanding the

materials.

expanded

more

credit squeeze and other
credit restraint efforts

disinflationary

The

only

*

LONDON, Eng.—One of the in¬

return

of

shortages

of

goods.

There

is,

of

course,

no

question

of

degree

a

of

supplies of
als

have

ably.

also

then

that

the Ameri-*

be-

power

and

in

Britain.

In

the

cir-

of

the

increase*

an

Reserve

rediscount rates

by J/4% is liable to be much
effective

than

increase

an

British bank rate

more

of

the

by 1%%.

once

in

more

particular

of

steel

and

consider¬

every

out

con¬

and

now

of

various

and

there

It

is

is

true,

the shop windows and shelves

banking

community to comply with the
requirements of official policies
not

was

some

fully

justified.

When

banks

in

their

relations

many

are very often un¬
get just what they want.

exaggeration to

months

during 1955 the
British banking system has frus¬

say
that the state of affairs in
which too much money was chas¬

trated

ing

ernment

securities in order to be

able

maintain

goods

has

now

re¬

turned.

The volume of gocds that
available is now incomparably

is

larger

than

it

early postwar
of

ume

even

of

ume

mula

goods.

would

has

power

than

more

the

The

ex¬

the

vol¬

correct

for¬

be

therefore, "too
chasing not quite so

much money
much goods."

This

state

of

affairs

has grown

during the last few months,
notwithstanding all credit squeeze

worse

other

and

disinflationary
long as supply

So

ures.

meas¬

is

in

inferior to demand,
it will be difficult to halt the rise
in
prices.
The government has

many respects

embarked
hortation
turers

on

campaign

a

to

persuade

of

ex¬

prices, or at
rate to abstain from raising

any

them further.

isting

In view

supply

of the

demand

-

ex¬

relation¬

ship, however, it is difficult to
imagine that such peaceful per¬
suasion

could

produce

worthy effect.
ment

any note¬
Unless the govern¬
in

succeeds

reduction of
of

means

achieving

consumer

demand by

curtailing

consumer

purchasing power,
and

in

a

merchants

manufacturers

likely to

are

accordance

with

the

act

law

of

supply and demand in fixing their
prices.
The
some

the

The
ities

fact

that
were

the

prices

raised

of

recently

; in spite of the fact that their producers
showed
considerably in-

credit

and

volume

British

squeeze

gov¬

merly

of

credit,

stock

to

at

&

force the credit squeeze by means
of an

^ven

base

now

effective

a

scarcity of

more

credit

due to

money

taxes

of

during the first two

months of the year. It is expected
the
flow
of
funds
to
the

will

up

consider¬

of liquid

resources,

mop

able amounts

thereby compelling the banks to
It

credit.

remains

to

whether

be

this

how¬

seen,

credit

age will be allowed to

short¬

proceed to

point where it begins to hurt.
Already there is a growing pres¬
sure against it.
A leading indus¬
trialist, Lord Chandos, who was,
until recently, a prominent Mem¬
a

of

ber

the

Winston

State
Ira

special

Burnet

&

Co.

situations

and

for

Wiesenberger & Co,

He collaborated
cial reports

were

prepared
request of the Board of
Governments of the New York

Exchange

government

Unions

ber

1
Crist will be admitted

of

the

New

York

stage to

of

be

the

moment

is

least

at

admission,

a

21

these

pretty well

mem¬

the

at

up

gentle¬
in the

26

their

bought

Eastern Sees. Co Formed
BANK, N. J. —Jack S.
Skakandy is engaging in a securi¬
business

Broad

Street

Eastern

from

Securities

&

the

at

157

name

of

Co.

Form Credit &
Credit

offices

under

Commodity

Commodity Corpora¬

tion has been formed with offices
at 250 West 57th

City,

to

Street, New York
in

engage

a

The

inclusive

whether

seen

dual

Stock

member

Seven memberships are owned
by the estates of former members.
John

brokers

between
and

—

1900

still

is

Exchange's

Leonard

March 28, 1889.

on

Branch, for instance,
membership in 1896. He

a

died

in

owns

it—and has

1930

are

oldest

White

D.

of

This informa¬

Gould

is

83

Sichel

A.

is

89

and

The
bers

owned by estates.

memberships

been

$62,000

The

new

directory does not give

the ages of

members but the l?.st

count

a

1954—six

was

made—on

members

Other

ranking

25

and

29

old-timers

in¬

age

age

a

matter

years.

of record only.

100,000 SHARES

Minshall Organ, Inc.

re¬

COMMON STOCK

Mr.

(Par Value $1.00

strong enough to

per

share)

pressure.

.

.

creased

profits

resentment

in

in

causing

official

much

circles.

The government feels that it will

,

be

difficult

Unions
claims
not

,

long

the

Trade

their

wages

employers

as

to

cooperate

in

government

halt
of

so

induce

to

moderate

prepared

the

.

to

the

are

with

effort

the

rising trend in the
living.

to

cost

The view is held in London that
;

the United States authorities have
been

much

more

successful

in

recent
*

,

If the government

really wanted
bring about the required de¬
gree of credit squeeze it could, of
course, do so by direct interven¬

tion

in

duce

the money

curtail

their

maintain

their

traditional

await

volume
tax

natural

a

of

The

cash

payments.

would be

the aid of monetary devices.

cash

of

of

1956

all

that

the

to the government

of

i

the

to refrain from

ing




in

In¬

these

cash
tax

that

will

high quality electronic home organs since 1944.
priced musical instruments has met with
unusual fine reception — Sales have increased consistently and
back-log of orders is the largest in company's history.
In

our

the

payments.

its

result

Whether

opinion

an

outstanding capital gain situation for 1956.

Write for latent report—no obligation

BARUCH

BROTHERS & CO.

INC.

UNDERWRITER

replac¬
find

COMPANY

.

Manufacturer of

mone¬

as a

GROWING

Their line of medium

tary authorities would have to do

way

on

to

its

Per Share

I

through seasonal
During the early

business

responded

at

8%.

decline

promptness with which American
conditions

order

ratio

minimum

stead, the government prefers to

lating

with

in

credits

RAPIDLY

re¬

volume of bank cash,
thereby compelling the banks to

part

conditions

market to

the

year than the British authorities in their policies of regu¬

business

Price $3.00

to

44 Wall

Si.

New York 5,

N. Y.

and

95

Aver¬

of all members is about

53.

re¬

be¬

old, 32 be¬

As these shares have been sold, this advertisement appears
as

Jan.

were

years

ranged from 30 to 39

clude Howard Gould who became

retired

in the past few years.

tween

at

B.

A total of nine

have

seat

quoted

Benson

directory lists 1,359 mem¬
plus
seven
memberships

tween 21 and 24 years

is

hi3

Eugene

Sloan, 88.

according to Exchange records. A
today

1

and

brother, Frank Jay, is 77.

1,

bid and $87,000 asked.

still

White, the Exchange's
oldest member, is in his 88th year.

paid

consideration,"

estate

paid annual dues

Leonard

time

nominal

his

but

of $750 each year since 1930.

tion is not in the directory but he

"a

Kerr

bought

Philadelphia who bought his seat

securities

business.

sufficiently ad¬

a

1910

veteran

seats

today.

RED

ties

of

in
1898; his brother
Gould who bought a

Jay

Howard

Another

President of the Exchange, issued

the

cause a

Butler would be

resist

their

scale.

age

and

Stock Exchanges. Mr.
Manager of the firm's
bond department.
Crist

Sir

slight
employment.
It

in
to

of

rank

men

partnership in Kay, Richards
Co.,
Union
Trust
Building,

be

must

time

PITTSBURGH, Pa.—On Jan.

members

the

behalf

on

the part of

on

the

squeeze reaches

mains

bought

In view of the fact that

Kay, Richards Go.

Churchill,

erfully by protests

vanced

members

now

seats in the last century.

delivered
a
strong attack against the credit
squeeze.
Protests by businessmen
are
likely to be reinforced pow¬
Trade

in the New York
Exchange is no guarantee
longevity—but five men who

are

Francis Oris! Partner

to

payment

member

a

Frank

Stock
of

&

Superintendent of

represents

Membership

Commis¬

sion.

In

Bailey, State

check

and

membership the following year;
Eugene A. Sichel, 1899; and Ben¬
son B. Sloan, 1899.

Stock Exchange and submitted to
the Federal Reserve Board and
&

The

Co.

N.Y.S.E. Issues

the

Securities

&

several spe¬

on

which

Florida.

and "B" Bonds purchased on Nov. 1, 1955.
Left to right: Hunter S.
Marston, Partner, Glore, Forgan & Co.; Governor LeRoy Collins
of Florida; Corrington, Bailey, and Donald Breen, Manager of the
Municipal Bond Department of Glore, Forgan & Co.

was

analyst

of

Haupt

Glore, Forgan & Co. and associates for
$10,412,000 State Board of Education of the State School Series "A"

Co.

E.

Carrington, Jr., Manager of the Municipal Bond
Haupt & Co., Dec. 1 presented a check for

Ira

$10,415,526.16 to Thomas D.

economist forFahne-

the

on

that

ever,

as

G.

of

and

of

payment of large amounts

curtail

Department

di¬

members, according to a seniority
directory which Keith Funston,

hopes

seasonal

Treasury

William

Co.,

higher bank rate. They Pittsburgh

operation of the
in the new year

direct

&

their

squeeze

the

Walston

portfolio analysis

Thompson & McKinnon

Francis E.

rein¬

with

the

Mr. Ohlman also
manager the
investment research department

in

author¬

reluctant

..

"Investment Appraisals"

was

vision

in¬

even

monetary

still

are

duction

goods

official

defiance of the official policy.

manufac¬

to lower their

to

crease

But the vol¬

years.

purchasing

panded

during

was

the

by selling out its holding of

Exchanges,

Planning," has a
experience in all phases of
investment management.
He for¬

at

discipline and loyalty of the

British

but customers

few

of

the

States

of the New York

Stock

broad

Arthur

United

-

and ."Investment

Snyder, gave evidence before a
Congressional Committee, he grew
positively lyrical in his praise of

the

able

too

chief

for W.

the

ago

i

Ed¬

Edwards-^ &

^Ohhiian,. former editor-in^

Secretary of
Treasury, Mr.

years

with
the monetary
authorities.
Today he would tell a different
tale, in view of the fact that for

are

with goods,

ever

an

Mr.

and served

British

of

in

has announced that Maxwell Ohl¬
man has
joined the firm's staff..

willingness

in replacement.

It would be

.

headed

delay

to

,

wards;; .partner
Hanly, members

employees; and American

one-sided in the United

cumstances
Federal

of

Another lesson taught by recent

sup¬

Hanly

HEMPSTEAD, N.-Y.—Bert

British experience is that the re¬
liance
placed in the proverbial

stocks

as

Joins Edwards &

materials

short

"too late and too lit¬

Maxwell Ohlman

decidedly

have

still crammed

,

raw

goods

run

a

.unern-

are

declined

the

balance

as

non-ferrous met¬

told

are

the

States

In the retail trade, too,

sumers

is

postwar

made

some

With

millipn

upon,

early

shortage

a

ployed to draw

employers

ply, and bot¬

not

the part of those who feel

on

can

as

in

appearance;

of several

nearly

Einzig

is

is understandable.

erence

reserve

tween

essential

credit

tle."'"

is the object of envy
in British official circles^The dif-r f

and the

boom.

of

criticism

ary measures

years

some

there

to

that of the war

that of the

to

open

it has been

disinflation¬

Nor

Nevertheless,

have

occasions

shortages

Korean

their

recent

moderate

comparable to

to

tlenecks

two

or

relatively

economy is much more flex¬
ible
than
the : British
economy.

years, or even

Paul

one

policy

is

it has gone too far but also
the part of those who feel that

on

dications of the inflationary con¬
ditions that exist in Britain is the

of active

that

successful than those of the British

more

means

British

squeeze

Sees U. S.

measures.

by

intervention instead of awaiting
passively
the
development
of
scarcity after the turn of the year.

tions in Britain is the return of
raw

Present Payment for Florida Bonds

be seen. But the same
degree of
scarcity could have been brought

By PAUL EINZIG

19

(2431)

BOwling 9-2800

The Commercial and Financial Chronicle

(2432)

20

Peace in Korea will be a matter
party; the failure in Geneva will
ammunition for the orators of the other. And so

being of politicians.

boasting by the

furnish

one

and down the line, and we for one
the prospect.

it will be up

tremble at

much

do not

in

estimate is the fact that

our

lems of the

day

there

practically all the prob¬

had almost said a Pickwickian—sense.

a

superficial—we

That is to

say

the

parties sponsor and defend very much the same things
even if they assign different names and different slogans
to their program's. The Democratic party under the tute¬
lage of the New Deal and the Fair Deal set up in this
country the most expensive, the most extravagant social
security system this world has ever seen, possibly the
most extravagant this world has ever dreamed of. The
Republican party proceeds to broaden and enlarge it until
its liabilities almost reach the unimaginable. The New
two

Deal and the Fair Deal foisted
tem upon

this

the country in

an

leave this basic

tax system, but they

over our

principle in tact.

rate, costly, useless and senseless system
the

for putting the

shackles.
The
"opposition" reaches a position where it could do some¬
thing about it—it had screamed to high heaven about it
business

of

an

to

moderate

and

in

country

earlier date—but it has done

at

sanitize the

exactly nothing

system. It inherited

even

so-

a

called full

employment law and full employment philos¬
ophy grafted On to full devotion to the nfanaged economy
notion. It has done nothing but swear allegiance to it
since.

ever

;

For

Roosevelt had in
the

farmers'

a
a

votes

generation the - party of Franklin
gentlemanly sort of way been buying
election

in

after

election

with

this

larger, broader and deeper sense any issue
if there were definite differences
programs of the two contending

could be partisan only
in the philosophies or

parties. But where is that difference? There are much
greater differences within both the Democratic and the
Republican party than there is between the two parties.
And

this

seems

to

us

programs, as well as

to be true

of

foreign policies and
of the sundry domestic issues of the

day. What the political orators shout about are super¬
ficial phases of things which are believed to have vote
getting or vote repelling qualities.
But what

is most regrettable in

all this is the lack

of

carefully defined international programs or policies
which are calmly,
explicitly stated and mean somethings—
a
line of thought or action about which men can and
would legitimately differ and about which there
might be
calm

and realistic

clebate.

opportunity for such
lies in the heads of

a

It is not

as

line of action

one or

if there

or

the other of the

were

no

that all wisdom

political parties.
happened is that the New Deal, following the
Wilson doctrine, has developed a world
leadership com¬
plex, which seems at times at least to aspire to a sort of
Pax Americana throughout the world. Although there are
individuals in the party which hardly subscribed to such
a
notion, it is a fact that by and large the Republican
What has




lieves

maintain

to

that

Kremlin

food

and

vote

increased
and

ments

must continue

trade

with

the

to

Iron

con¬

Curtain

countries.

Unfortunately for. do¬
industries, broad
political considerations must
govern United States actions in
mestic exporting

dealing with this problem.
Understanding the current farm
problem might be aided by divid¬
ing it into two somewhat arbi¬
trary segments.

now

lems

of

cal orators.

marketed.

are

First, the prob¬

full-time

agriculture

we

of

so tnat it can de¬
energies to arma¬

imperialism, then the

free world
trol

requirements

fiber,

playing it is a
matter about which there are at least two opinions. But
doubts are heard only from impotent minorities. Both
parties are hopelessly committed to this line of action—
and in this sense the question is nonpartisan by nature
no matter how much
screaming there is among the politi¬
way

of trying to
shortages and mili¬

stockpile

tary

peace

are

we

the

meet civilian

large stake. Of that

a

failure

all this warrants the role

commercial

composed

of

well-

equipped farms of sufficient size
to

produce

vail.

satisfactory family
prices pre¬
This group constitutes about

35%

of farm

income

if

a

reasonable

operators who pro¬
of farm products

duce about 85%

'

The
problems of commercial
agriculture are largely those of
the

Continued

from

page

13

market

from

the

place, and they stem

difficulties

of making
adjustments, of ex¬
panding consumption, and of sta¬
bilizing prices and income. From

production

Current Problems of

economic

an

much

Economic Policy
of

growth or the achievement
other national objectives.

of

Thus, monetary authorities have
the delicate task of maintaining
just the right balance and of de¬
tecting quickly signs that restraint
is becoming excessive. They must
be prepared to reverse policy be¬
fore
the
economy's
growth
is
checked and unemployment cre¬
ated., Monetary policy should be
used

jointly and consistently with

other

government

programs.
It
inconsistent, for ex¬
ample, "$ to pursue a restrictive
general credit' policy with rising

would

seem

time

rates

and

the

at

same

legislate

general tax cuts
the grounds that the economy

on

needed

stimulation.

Problems

of

Agriculture

It may be presumptuous for me
at this particular forum to touch
the

on

current

Yet how

farm

Current

me?

agriculture
the

question.

it be ignored within

can

the context of the

subject assigned

trends

in

American

undoubtedly

number

rank

domestic

one

as

eco¬

nomic problem.

Most

tions

farm

under

since

World

this adverse
which

sector

previous

a

started

will

programs

of

program

farmers

trend

standpoint
said

be

to

individual.

grow

capacity.

pro¬

the

Probably
current

to match our pro¬

reduce

most

which

fact

disturbing

reflects

the

problems of agriculture is the dis¬
parity of price movements — the
prices of things the farmer and
all of us have to

buy, On the one
hand, and the prices of products

the

farmer

other.

has

sell

to

gyrations

which

and

mounting surpluses.
this

volume

is

nearly
50%
above
prewar.
Advancing
productivity has given us this
output on approximately the same
number of acres,
fewer farm units

30%
if

fewer

farm

markets

are

year

with about 20%
and

with

some

workers.

Even

expanded

and

other outlets

utilized, further ad¬
justments of farm operations ap¬
needed to enable farmers to

pear

tively small changes in corp
duction.

We

for

program

taking

lutely

and

relatively.

Average

net income per

population

capita of the farm
from agriculture de¬

clined about 6% from 1952—when
the

parity ratio stood at 100—to

1954.

is

If

income from

all

sources

included, the decline has

about

ized

4%.
net

With

farm

aggregate

income

been

real¬

declining

10% this year, the per capita sit¬

uation, of course, has worsened
considerably further. Other seg¬
ments
istered

of the

economy

have

reg¬

real

mately 65%
addition

from

of farm families.

In

problems of com¬
mercial agriculture already men¬
tioned, these farmers presently

farm products and foods have ad¬

have insufficient

vanced 3% in the past four

months

while, in the same index, the price
of farm products declined 7.2%,
and processed foods declined 4.7%.
We

claim

can

general price sta-

bilitv only because of falling farm
prices.
Joint Economic Committee

has

for several

urged

that

years

effort be made to find out¬

have

Some

been

to the

land, equipment,
training to
produce a satisfactory living un¬
less their incomes are augmented
in

and,

many

important steps

these other
able.

1950

were

and

of

farm

tional

an

markets.

fair

basis

whose

We

of

means

with

other

production

growing.

need

find

to

competing

on

a

countries

for

export

is

But

shortsighted
at¬
our
surpluses
effects, not
only on world markets, but on
ourselves. If a food disposal pro¬
gram could be tied to an invest¬
ment program in underdeveloped
areas, important objectives could
tempts

could

to

unload

have

adverse

to

devise

kets,

we

While it is difficult

programs

know there

of

use

which

are vast un¬

products

has

brought
renewed interest in foreign trade.
The
Foreign
Economic
Policy
Subcommittee
nomic

of

Committee

pleted

the

Joint

Eco¬

has

just com¬
this subject.

hearings on
Perhaps the most pressing

and

the

this

most

troublesome

of

the

If

we

could

Communist

use

bloc

to

break

for

un¬

dermine the drive of the Kremlin

political

as

areas

possessing serious

problems.2

goals

and

economy

for

upon

preservation

our

and

strengthening of the free world.
For

to

the

extent

that

incomes result from

these low

underemploy¬

ment, they represent to the rest of
the

nation

available
services

to

loss

a

markets
that

produce.

it

the

has

otherwise

goods

the

means

nation

a

and

capacity

The loss of these

kets, in turn,
of

of
for

mar¬

for the rest

lower

level

of

employment and income, a lower
level of living, less inducement for
investment and consequently
rate of economic growth

lower

than it would otherwise have. The

magnitude of these losses, like the
magnitude of underemployment in
American agriculture, cannot be
precisely estimated. However, if
the

nation's

having
$2,000

farm

money
per

families

now

incomes of less than

year

could

increase

2

Development of Agriculture's Human
Resources:
A
Report on Problems of
Low-income Farmers, U. S. Department
trade with .of Agriculture. April 1955.

country's immediate foreign trade
problems concern East-West rela¬
tions.

five million in

incomes

national

new

farm

popula¬

people. But they also have
important bearing upon the
performance of the rest of our

a

The need for outlets abroad for

million

one

farm

obviously mean
low levels of living for these

very

this

our

over

rural

a

over

Low

filled needs for food and fiber in

country and abroad.

nof avail¬

are

Agricul¬
recently estimated that in

there

farms
tion

Too often

sources.

sources

The Department of

ture has

but more are
needed.
In some instances, such
as cotton, we are losing our tradi¬
better

cases,

from non-farm

taken,

during this

Indica¬

large,

in recent months, we
experiencing an alarm¬
ing, rise in general price indices.
Wholesale
prices of other than
be

down the Iron Curtain and to

period.

off

excesses

stock when crops are short.

would

gains on whatever
basis you wish to calculate them
same

pro¬

workable

a

the market when yields are
and
increasing marketing

declining

do not interfere with present mar¬

de¬

need

The second segment of agricul¬

come.

a

rela¬

ture consists of the other approxi¬

be furthered.

Agriculture has received

farm

of

the

participate fully in the benefits
resulting from rising national in¬

clining share of national income
during recent years, both abso¬

in

out

come

been

on

Had farm prices not

the

prices

low-income

tion

price

ductive

present

surpluses.

capacity
Produc¬

also

a

demand

to

characterized

excess

is

maintaining economic growth is a
fairly stable price level. There¬
fore, we should do something to

left

lets at home and abroad for farm

of

the

single

a

support system for some com¬
modities. One of the elements in

if

until the day the huge
surpluses are somehow disposed
of and the nation's population and

every

problem

to

limit

there

But

is
of

use

payment

to

something to be said for

War II have been relieved of the

the

there

the

would

payment

problems of excess capacity that
plagued
them
during the
late
1920's and throughout the 1930's.

'Agriculture,1 however, still faces

direct

which
of

amount

for

grams

continue

The

industries

that

are

the

in

tax¬

payers' funds. The cost of the system by the time the
present Administration came to office was staggering. The
cost of the system has been somewhat reduced, but is still
enormous, and Republican politicians in preparation for
next year's voting are now talking vaguely and wildly
about schemes which certainly could not lead to the sup¬
position that the Republican party was one whit more
eager to call a spade a spade as respects agriculture or
one
whit more inclined to real statesmanship in the
matter. Basically, the difference between the two parties
comes
dangerously near being that between tweedledee
and tweedledum. In a superficial sense the issue is politi¬
cally as partisan as such men as former President Truman
can make it,
but in any basic sense it is anything but
partisan.
In

countries, we would have
to gain from such trade,
politically as well as economi¬
cally. But, if trade merely re¬
much

almost final disaster.

an

trying to play in the

interest

■;

almost

nation, have

doubt—and

no

Thursday, December 8, 1955

..

other

such

some

an

extreme not before known in

Out of the "reforms" of the 'Thirties came an elabo¬

securities

in

"soak-the-rich" tax sys¬

a

country at least; the Republican party coming into

control undertook to work

be

can

But whether

"partisan" only in

are

is

this we, now a mature

could be

serious and much more regrettable

more

of

historically new situation as
respects international relations. Time and space, if they
have not been annihilated, have at least been drastically
reduced in their impact upon the relation of one nation
to the others around the globe. Some of the older powers
which for so long kept the world more or less at peace by
means of a balance of
power no longer play the same role.
The balance of power technique seems to be less effective
than in the past, and, moreover, any balance is difficult
to acquire and to maintain in present conditions. In all

Really Partisan?
But

prophet

Real Problems

paigns will certainly not be nonpartisan as regards foreign
policy. To suppose otherwise would be to ignore history
and human nature particularly as it is in evidence through
the

and

supporter

a

world

The

opportunity pass to score a point against an opponent
regardless of where the opportunity arises or what the
matter concerns.
In this sense the coming political cam¬

or

now

doctrine.

We
See It

As

is

party

Continued from jirsl page

.

domination

over

For

additional

information

see

Under-

employment of Rural Families, Materials
prepared for the Joint Committee on the
Economic Report by the Committee Staff,
Committee Print, February 1951.

Volume

182

Number 5488

their incomes to $2,000, without
adversely affecting the incomes of

White House recently promised to

to expand at rates

submit

the

increase

and

in

a

other people, this would give them
in the aggregate about $3 billion
more

to spend than they

per year

have.

now

This

addition

their

to

spending power would undoubted¬
ly increase employment and in¬
available to the rest of the

comes

nation's
an

people by fully

as

During

recent years the Joint
Committee, under the
leadership of Senator Sparkman
and Senator Flanders, has intensively studied the problems of the
family.

consistent with

the

labor

In

policy-makers in the coming year.

skill, and the free institutions to
solve them.
It is important that
we

make

sary

the

adjustments neces¬

to enable the entire economy

(Special to The Financial

(Special to The Financial Chronicle)

CHICAGO, 111.—Eugene H. Dib¬
ble

III

Straus,

joined

has

South

(Special to The Financial Chronicle)

JSAN FRANCISCO, CALIF.

—

Eugene C. Weinstein is now affil¬
iated

with

Reynolds

Montgomery

&

Co.,

425

of

the

Blosser

the

staff

of

La

previously

Street,

members

and

Midwest

York

Stock Exchanges.

with

Mr. Dibble was

Hornblower

&

Joseph Grandwetter Opens
Joseph Grandwetter is conduct¬
a securities business from of¬
fices at 235 Mount Hope Place,
ing

Bronx, New York.

Weeks.

Street.

Street.

McDowell, 39

&

Salle

New

Chronicle)

BOSTON,
Mass. — Gilbert
L.
Steward, Jr. has joined the staff
of Tucker,
Anthony & Co., 74
State

With Reynolds & Co.

-

The

President, the Department of Ag¬
riculture, and other Federal de¬
have

partments

recently

made

recommendations.

Important bills
comprehensive
pro¬

providing
grams with

GOING PLACES

Federal assistance for

this important group are pending
in

the

should

the

great turnpikes

with Cities Service...

Congress.
It is generally
that a balanced program

agreed

on

industrial de¬
velopment within the area, stim¬
encourage

ulate

relieve
techcredit to help

•

enlarge

•

out-migration

population

nical assistance and

farmers

to

and

pressures,

reorganize

and

their farming operations.3
Problems of Low-Income Families
And Chronically Distressed Areas
In

addition

the

to

rural low income

are

problems

.

the problems

of urban families and

areas

which

in times of bountiful pros-

—even

experience excessive
low in- ;
and economic distress. The1

i t

p e r

of

y

chronic
come,

—

unemployment,

Census Bureau has estimated that

the

under

change
There

in '
—did not:
1948 and 1954.'

prices

between

about 9.5 million such

were

families.4

have

this

in

Some

group

and.

income

satisfactory

a

in- ;

$2,000—measured

1948

constant

families with

of

number

comes

Many others will
continue to need assistance.
But;
of living.

level

large numbers can be more prod u c t i v e, self-supporting, inde¬
pendent citizens. if given an op¬
portunity. Maintaining general

prosperity is the first essential
Beyond that, experts agree
that in the long run expanded and

step.

education

broad

health

and

pro¬

offer the best hope for in¬
creasing the productivity of this

grams

group.

problem is that of
where
general
activity is on
a
low

related

A

distressed

areas

economic

.

,

plateau or actually declining.
In
September of this year, there were
26 major labor market areas show-,
There

classified.
midst

of

Department

The

there

estimates

Labor

500,000

so

of

over

fMrni

in

about onenation's total un¬

alone,

the

of

are

unemployed

persons

areas

fourth

areas

These persist in the
the record-b reaking

prosperity.

these

minor

94

were

surplus."

labor

"substantial

ing

or

employment.
A clear need exists for action on

distressed-area

comprehensive

a

program.

designed
lems

MM*
vyyyy//?

A • program should be
to deal with the prob¬
distressed

of all

whether they originate

areas,-

from com¬

petition of imports, from automa-.
tion, from shifts in population,,
from changes in market tastes and
* or
from other causes.
comprehensive program

demands,
This

should

for .technical

provide

as-,

sistance to individuals and groups

community

or

organizations,

for

Federal credit in limited amounts

needed, for education and

where

training and retraining of workers,

relocation

and for assistance in the
of

workers

willing to move to
employment op¬

of greater

areas

portunity. Senator Douglas has a
comprehensive distressed area bill
pending
in the Congress. The

motorized Americans
Cities Service petroleum products than ever before.

other oil company. During 1954,

bought more

the Subcommit¬
Families of the Joint

Hearings before

3 See
tee

Driving along the major turnpikes, as millions did last year, it is easy
Service has more stations on principal toll highways

to see that Cities

than any

Low-Income

on

Committee

the Economic Report, No¬
(available
in
December

on

1955

vember

CITIES

1955).
4 See

Characteristics

of

the

Low-In¬

Related
Federal
Programs, Selected Materials Assembled
by the Staff of the Subcommittee
on

come

Population

Low-Income
on

the

Families,

Economic

Print, October

Joint

Report,

Committee
Committee

1955.




@

A Growth

and

Number 16 of

a

series

21

Tucker, Anthony Adds

With Straus, Blosser

force

productivity. This is the
challenge to public and private

conclusion, let me say that
problems which I have dis¬
cussed today are not insurmount¬
able.
We have the wealth, the
human and material resources, the

large

in

the

Economic

farm

proposal in January.
Conclusion

amount.

low-income

(2433)

The Commercial and Financial Chronicle

...

SERVICE

Company

22

(2434)

The Commercial and Financial Chronicle

Possible Checks

Business Investment Boom

on

tion of the Federal Reserve Banks
in

raising

in

December

"Monthly Bank Letter" of the First National City
find they are

Bank of New York points out businessmen may
not able to spend on new construction as much

-

there

as

-

limits

are

the

to

required. Holds there is

materials

and

skilled

Obviously

they
in

and

in

manpower

December

issue

of

interest

fear

not

a

near

future,

tighten

money

of

business

sta¬

a

the

uled

for

next

year

"Monthly Bank Letter," monthly

upon

in

both

Government

publication of the

private

forecasts

offset

moderate dip

First

the

National

City Bank of New York, contains
some
pertinent
and
interesting

tial

a

building.

is

to

In B, G.

Christopher

and

mind when I think of analyz¬
ing security transactions is "com¬
pare." No action of any stock, no

my

action in other directions.

thing in tape reading is relative.
to
other
stocks
and

producers'

ing this topic the "Monthly Bank

tained
by
purchases,

all

Letter" states:

production

should

current

boom

Concern¬

"Among the specific reports of
the month, the most significant
place belongs to the results of
annual

the
of

McGraw-Hill

survey

business

plans for capital in¬
which was conducted

vestment,
in

October, after the President's

heart

attack.

equipment

if

even

difference

the

important

some

the

world

as

whole and the group

a

which

to

of
individual
should compare
question with the

you

in

stock

market

in-

not

are

the

first

Speaking

decline."

movements,

"Although

in

"when" something happens.

automobile

"Bumping Against the Ceiling"
dusties

It makes

"when."

is

time and

to

the

on

business investment.

it

This is

pushing against
ceiling as much as those cited
earlier, it is clear that further
gains in over-all production must

sentially easy to do. We spend a
great part of our lives comparing

be

the

the

belongs.

es¬

in order to arrive at decisions. Do

According to this
expenditures
for
new
plant and equipment in 1956 will

gradual and harder to achieve.
Under such circumstances unre¬

Compare, and for buying purposes,

strained

give

be

made

survey,

a

13%

than in

greater

total of $33.4 billion.

turers

scheduling

are

1955,

or

Manufac¬
a

30%

in¬

crease, and three-quarters of the
firms surveyed already plan
to
maintain
of

rate

expand this advanced

or

spending

during

1957

Producers of iron and

well.

as

steel,

automobiles, cement, and nonfermetals plan to step up out¬
lays by more than 50% in 1956.
rous

"These

ambitious

plans speak
Obviously
the
companies spending these huge
rums anticipate an economic cli¬
for

themselves.

in

mate

which

they

can

put

new

facilities profitably to work. They
to

want

expand
capacity
and
modernize plant and
equipment
Jo. order to be ready for

growing
markets, keep in step with com¬
petition, and hold down costs.

New

products,

production
and distribution techniques, and
new plant locations all enter into
their plans.
The high level of
of capital expenditures scheduled
for

indicates

1957

these

new

outlays

that

many

of

part of longand therefore are

are

range programs

less

likely to be cutback appre¬
ciably in case of short-term busi¬
fluctuations.

ness

"Experience
has

shown

in

that

more

likely
preliminary

past

surveys

management

to revise
plans
for

is

upward

capital
spending than to cut them back.
In
1956',
however, businessmen
may find that they are not able
to

spend as much as they would
like. What they can do will de¬

in
large
part
upon
the
ability of the capital goods indus¬

pend

tries to obtain

terials

and

the necessary ma¬
skilled
manpower.

Expansion

programs do not break
bottlenecks overnight. Meanwhile

shortage

one

other.

tends to breed

to

manufacturers

would

like

step up their output, but have
been

not

able

do

to

so

possible

sion,

because

tain

run

the squeeze on

cer¬

types of steel will be inten¬

sified

by the industry's

pansion
"But

Federal

noals

are

fully

lowing.

that

It is worth

not

only

is

re¬

the

for

capital
goods large in itself, but produc¬
tion of these new facilities
also
Lives rise to employment
and

purchasing power without mak¬
ing available, over the short
run,

a

commensurate

f umer

(A

goods.

industrial,

quantity of

situation

steady

With the strain

tive

facilities

rather

produc¬
becoming
more
on

less

than

pronounced, the
keep the foot on the brake

need to

"Here and there

relaxing

either

a

credit

or

are

indications

pressure,

reflecting

lessened

an

half

of

1,373,000

1955.

in

This mod¬

decline, together with fore¬
of

casts

ment

department.

further

a

the

past

4%,

which

12

ness

in

drop to

and

labor.

months

is

the

whether

credit

may

want,

evidence

supply
The

of

Paine, Webber, Jackson & Cur¬
tis, members of the New York
Stock

that
cause

the

on

be

tight¬
materials
is

supply all

every
builder
further inflation

boom

rising

by

prices, and
until

it

vacancies

and

within

bounds

capacity, price
minimized, and the

struction

to

as

the

partnership

James

W.

bert P. Everts, Jr., of Boston, and
Thomas

O.

Peirce,

of

Beverly

Hills.

spread

There
which

over

con¬

longer

a

be little doubt

can

would

course

con¬

tribute most to economic stability
and best serve the general wel¬

Which

made

in

outlook

the

to housing but to

ahead,

whether

one

thinks

R. W.

Pressprish Co.

stocks

R. W.

Pressprich & Co., 48 Wall
Street, New York City, members
of the New York Stock
on

Jan.

will

1

Vandernott

to

Vandernott

firm's

Exchange,
Joseph F.

admit

partnership.

Mr.

is associated with

municipal

the

market

the

illness

the

chances

trend

try

rising volume
commercial,
and

public utility construction sched¬

can

safely

do

expectations

automobile indus¬

do in 1956.

authorities,

Morley to Be Partner

the

too

much

J.
a

John

—

Morley on Jan. 1 will become
partner in A. M. Kidder & Co.,

members

of the

New

York

Stock

Exchange. Mr. Morley is resident
ville

the

of

manager

firm's

Jackson¬

office, 122 West Forsyth St.

dence

available

prepared

in.

persistence of the

tops

key

market

to

clines will

Laurence Harks Go.

to

to

them

and

be

when

It may

change
new

their

Laurence

M.

Street,

members

Richard

on

&

Co.,

York

New

Jan.

2

Marshall

M.

de Forest

Marks

New

the

of

Exchange,

49

Citv,

advances

evidence

comes

be noted that the

ac¬

de¬

or

work more than

never

ard K.

Volume of trading is also
an
important factor. It is difficult to
define

in

Therefore,

is far

more

little

a

useful than

lot of theory.

Street,

In

similar

a

ume

is

on

are

the

continue

changed.
the

This

trend

until

applies

in

proven

both

for

in question, indus¬
trially speaking, and price trend
of a stock, tape-wise.
company

"Never argue with

the tape" is

saying worth thinking about.
the trend

to

change direction

be

a

in being

there

has

occurs

of

powers

the

most

of

us

after

it

has

it has

highest order. For
detecting the change
occurred

to

and

to

I

think

goal.

it

better

is

be late and

early

before

but

proceeded too far is still

profitable

very

gifted with
and foresight

are

analysis

very

place.

detect this change
and becomes gen¬

can

evident

erally
of

to

change in the influences that

Those that

and

many

Joins

CHICAGO, 111.—Harry J. Diacou
has become connected with

&

Co.,

141

West

Irving

Jackson

way

most

endless.

trading

the varia¬

previously, pat¬
behavior
are

You will have to study a

wish to have a knowl¬
edge of them and it will be up to
you to decide to either partly use
or

discard that knowledge.

few

very

will

you

have

patterns

them

note

heard

never

There
that are
will
find
if

even

their

you
or

name

had them called to your attention.
I will say on thinking it over

from

late

1933

the

buyer who

and

were

came

quite a bit
did quite all

up

bottom,

resembles

mentioned

believe

in

in

following

Averaging

pyramiding,

That

means

up

one's

not

believe

I

successes

and
as

minimizing one's failures. Or
the saying goes, "cut short your

losses
care

and

of

let

profits

your

themselves."

believe

stock

folio of diversified

take

.,

see

a

tors

and

buy

tape

However,

as

reader, I

use

as

a

reason

why

some

Shearson, Hammill &

and

some

the

of

ac¬

good.

this tape indication

try and determine
of these stocks are weak

necessarily

think

I

those

action

at

—

critical

any

whether

a

or

timated

greater

it

on

makes

a

impact on a
less than es¬

or

impact is

least it is

important.

important where

At

very

a

elemental and widely spread tape
seouence

is involved. An abnormal

follow-through in such cases gives
a
good tape reader a useful clue
to add to his other conclusions.

Recording
what

remembering

and

the tape is the
difference between tape

you

greatest

see

on

reading, chart reading and simply

keeping a numerical
prices and volume.

of

record

Proper Tape Reading—A Most

Complete Picture of the
Market
So far

with

I

say

must

that

tape

for

our

but

competent

a

retentive

a

ink

memory

does

supply the most complete
picture of the market. In the first
place, it is "live."

ample

It's

Now."

It

Charts for

"canned"

are

comparison.

A

or
a

ex¬

"on film"

real

case

of

moving

tape
picture of the market also gives
several other types of information
not

You

readily available elsewhere.
see
aprpoximate transaction
as
it occurs.
I say "ap¬

volume

proximate"

because

items such

"floor stopped stock"

as

not

are

there

are

printed and of course
of odd lot transac¬

percentage

hedged and thus are not
printed.
You
see
approximate
sequence.
That is, sales in the
general order in which they oc¬
are

curred.

This is very valuable be¬

essential

cause

it

is

some

of

the

tioned

do NOT

vance

that

tape

are

ticker

with

person

it

have not stained

we

fingers

tions

I am not a pure tape

strong.

tape

theory of how
tend to interpret any

anticipated

port¬

to

are

news

good

the

stock

a

shares I auto-

more

A

normal

mean

maticaly want to sell the bad

for

need

The reflection of this

moment.

that

.

prices

knows

masses

the

the

before.

particular

in

right.
and

for meticulous study

reason

of popular tape and chart notions.

of

turning points, lost the

The

after

ously with

Linn.

many varying
Experience is the

a

doubtful.

or

Mr. Diacou was previ¬

&

point.

book if you

than to be

sure

down after 1929 to 1932

buying

Boulevard.

Co. and Rodman

in

but

a

volume, and in time you

of

the

on

for

something and when I

Irving Weis

to

Observe

As I mentioned

an

Many, who
thought that various levels on the

I

(Special to The Financial Chronicle)

bearish,
up

great

a

circumstances.

It

assume

being will

I

Stock Exchanges.

is

only

cases

There

increasing vol¬

way

advance up to a point
and decreasing volume

reversal

a

both

the

that

averaging.

of

you

get to

an

bullish

on

reader

asso¬

members

If

can

destination more quickly at
mph. than at 10 mph. But you
may wreck the car 1 at
100 mph.

"See

Montgomery

terms.
you

car

50

those

in

Eubanks has become

a

your

However, in a broad general
way the averages work in favor of

most.

FRANCISCO, Cal.—Rich¬

positive

driving

are

sense

Stock

(Special to The Financial Chronicle)

new

horse

Joins Dean Witter Co.
SAN

ones

that perhaps after all there is one

admit

Lockwood, 3rd, to part¬

mak¬

valid

will

Manice

been

changed.

York

and

have

highs, the addition of
is meaningless.

new

anything actually useful. You
perhaps that they occur logically and that

nership.

Weis
course

save

new

ways

us

Wall

ing

FIRST

after a weak
a
lot. After

mean

shares

of

scores

The
year

The lock, so to speak, is al¬

average

To Admit Two

comparison comes tim¬
something happens is

all-important.
highs for the
spell usually

are

is that the key to
and bottoms or the

market

attainable

cannot

guessing.

are

the

When

will learn what it indicates.

stock market

before it

JACKSONVILLE, Fla.

Next to

ing.

before

rule about

no

considers

one

market, the reasoning I indicated
is more apt to be correct.

Eisen¬

That rule

one.

when

infre¬

occur

iat most in-between

quently, hence
times

absolute

But

top

being?

There is

in

of

low.

bottoms

President

caused the trend in the first

in A. hi. Kidder Go.

The monetary

however,

They must be guided by the evi¬

only

in

is

and

terns

In order for

the New York and San Francisco

upon

"bottom"

tops

in

only the
starting point. Next, I believe in
departing from pure tape reading
and inquiring into why. What are

one

pends

largely

fact, they MUST be ultimately
because the "top" is high and the

tion

its

be.

In

than when

now

are

are

teacher.

made

of

cheap and those that
dear.
They might

are

high

best

observations

Such

trading depart¬

ment.

ciated with Dean Witter & Co., 45

to what the

You can also
bottom levels.

or

higher

are

the

a

To Admit Vandernoti

the economy is tilting toward in¬
flation or toward recession
de¬

as

are

naturally recent levels. Which

Pyramiding

automobile demand and the agri¬
cultural situation.
Looking fur¬
ther

and

support

compare

And

the most?

higher in 1946
higher now

tops

1937

than in either year?

once.

of

pres¬

period of years.

issues advanced

in

stock

compare

over a

Which

will

1

is

demand; or whether,
other hand, activity should

held

sures

to

Jan.

on

Davant, of
Minneapolis, Henri
deLaChapelle, of Los Angeles, Al¬

of

shrinking
the

Exchange,

aomit

risen

question

housing costs and

on

invest¬

come,

have

it is better to

the

halted

the

some

Four New Partners

calling forth criticism of Fed¬
eral
Reserve
policy.
However,
costs
of
residential
building in

carry

of

for

Paine, Webber fo Admit

is

of

Manager

Mr. Mader

firm

can

the

to

hower?

of
particular

of

of

average

the first
erate

as

availability

saturation

markets, or perhaps both. Home¬
building is showing a mild slack¬
ening. In October, the number of
private dwellings started was at
an
annual
rate, seasonally ad¬
justed,
of
1,242,000,
compared
with

the

accordingly.

increases

of

this

to

up

time.

Exchange.

with

time

part of busi¬

con-

The




it

particularly in in¬
Money policy and
business prudence have contrib¬
uted immensely toward keeping

"Uncertainties

demand

time

ventory policy.

the

been

prudence

leaders,

ness

relate not only

expansion
realized or not,

demand for plant and
equip¬
ment will be a powerful sustain¬

membering

the

on

fol¬

are

same

continued

caution

York Stock

has

You

movements

than

market.

stock

consideration

first

best.

CITY, Mo. —Edward
Mader, on Dec. 15, will be ad¬
mitted to partnership
in B. C.
Christoper & Co., Board of-Trade
Building, members of the New

the

in

same

ex¬

the

aggregate

Banks

the

At

for

Mader

KANSAS

policy
of
which
the

fare.
own

these

ing force in 1956.

the

Reserve

argues

and

for

restraint

monetary

program.

-whether

com¬

—

period.

the short

a

spiral, excessive debt ac¬
cumulation, and eventual business
reaction
in short, the boombust
cycle.
This danger is the

justification

Edward

expan¬

to

price

to

However, it takes
mills, and over

credit
not

and consumption but to a more
rapid advance in prices, with the
danger of an accelerated wage-

productive

capacity.

demand,

increase in production

mensurate

they cannot obtain the necessary
steel. In turn, the steel
industry
is
planning extensive additions
steel to build steel

in

by

lead

would

an¬

The

shortage of freight
cars, for instance, has led rail¬
roads
to place
large equipment
orders.
As already noted, equip¬
ment

increases

low

time.

durable

goods production many be main¬

comments

in

Every¬

groups, and relative in point of
The second keyword refers

in residen¬

Over-all,

Tape Reading Today

Relative

than

more

9

page

chart, no high or low, nothing of
this sort is of any value whatso¬
ever
unless compared with the

Mader io Be Partner

counted

jrom

Thursday, December 8, 1955

..

forecast.

bility."

harder to achieve.
The

did

the

Continued

is

rate

business

a

downturn

"bumping against the ceiling"
further gains in over-all production must be
gradual and
now

sense

discount

when they acted to

they like,

as

one

the

.

before.

in

making

comparisons
If

the

men¬

motors

ad¬

know by watching the
which
particular
motor
you

Volume

Number 5488

182

.

.

The Commercial and Financial Chronicle

.

(2435)
started
most

first

active.

sustained
the

or

which

You

change

in

You

strength
can

ket

if

see

elsewhere.

a

some

cover

That

And of

is

course

how active the

see

be,

on

supply under

comparison again.
you

how

see

might

activity

can

in

seems

the

was

can

movement

a

reversal.

issue

of

and

mar¬

really is by how fast the tape

moves

much

how

or

of

falls

it

behind actual transactions.

if

know

how.

It

rewarding.
backs

selected

has

its

draw¬

a

as

taxes

are

Direct tape reading has

focus

to

the

on

be

can

previously.

occupation,

tendency

tion

it

and

have the time and

us

against it.
a

certainly

But

won¬

the time

described

as

Few of

have

you

atten¬

your

short term.
A
critic might say it tends to have
fail to

you

trees—but
trees

it

very

the

see

the

forest for

truth

show

may

is

50-cent

week

a

increase

in his pay as a runner.
Newborg
Co. had been in existence just

&

five years when Mr. Easton joined
them.
Mr.

Easton

became

managing

partner of Newborg & Co. in 1937,
and has continued in that posi¬
tion

partner of
New

since.

ever

a

York

As

managing

member firm

Stock

with

of

the

sion.

respon¬

supervises

recruitment

and
development of
personnel,
keeps in constant review the best

of

use

ment,

mechanized

acts

in their

ties

office

agent for his

as

which

numerous

firm

Mr.

Easton

has

unique

other du¬

involved

are

day-to-day operation of
brokerage office.

rather

equip¬

dealings with other firms

—along with

Exchange he is

numerous

He

a

in

the

reputation

a

among

banks

rarely hears about.

reputed to have the most illegible
signature in
Wall
Street.
Mr.

The efficient

discharge of those responsibilities,
though, is essential to providing
maximum service to the

investing

public.
Mr.

handles

Easton signs

his

for

firm's

instance,
relations with

the Stock Exchange and with the
Securities and Exchange Commis¬

brokers

he

—

is

He

lives in

an

Erie

commuter

and

Ridgewood, New Jersey.

with
Bank
New

One

of

for

his

a

drives

hobbies—a

strange

commuter—is

driving;

thousands

miles

of

a

of color

York

liam
South

the
Koncius
with

has

Fla.

—

become

Oppenheimer

Duval

Steven

I.

Co.,

Stock

was

Street.

&

a

were

against

you.

not

York

and

Exchanges,

Los

on

partnership.

be

The average investor has to de¬

pend

more

tions

for

tions

and

I

over

the

charts.

ple

charts

on

his

analysis of transac¬

favor

charts

tabula¬

or

the

tabulations

For

have

a

most

peo¬

peculiar

way

of

appearing simple and it is very
clostly to find out that they are
far from it. Just plain records of
what you wish to remember in the
way of unusual activity or dull¬
ness
or
important high or low
points supplies most people with
all they require.
I

think

this

to

occurs

is

me

about

all

valuable

as

that

within

the time limits at my
disposal to¬
day. I will be very glad to at¬
tempt to answer any kind of

questions
what

related

remains

In

to

of

our

our

conclusion,

in

topic

hour.

remember,

in¬

vestment analysis and advance or
inside information are useless un¬
less weighed on a current market

price basis and considered against
the

general market trerd and in
relation to expected persistence of

that trerd.
most

do

of

not

I mention this because

the

analysts
to

seem

why they

I

know

have
it.

More attention

to

met

That

earn as little as

is

they do.

transaction

an¬

alysis would, increase the accuracy
of
their investment
conclusions.
The margin clerk looks at market

prices

at

not

book

earnings ratios
Be

values,
income

or

price
A GIANT FOR ITS SIZE

yields.

that you pay some atten¬
tion to them as well.
sure

of the Bell

They

are

rent to

F. A, M. Easton Willi

...

Shown above, in actual size, is

Telephone Laboratories'

electronic devices which

direct

current—an

new

one

silicon rectifiers.

convert

alternating

cur¬

telephone

serv¬

essential step in

ice, household equipment and in almost

every

industry.

Hewborg 59 Years
F.

A. Morgan Easton on Dec. 2
celebrated
the
50th
anniversary
of

his

association

with

the

Stock

Exchange firm of Newborg &
Company, 25 Broad Street, New
York City.
Highlights of the
celebration
tickets for

were

Another New Electronic

Development from Telephone Research

trip to Honolulu

a

for Mr. Easton and his wife Helen
—a

surprise gift from the firm—

and the personal and official

gratulations

of

Keith

President of the New

9 IMPORTANT NEW SILICON RECTIFIER, WITH MANY POSSIBILITIES IN TELEPHONY

con¬

AND

Funston,

OTHER

FIELDS, IS PRODUCED AT BELL TELEPHONE LABORATORIES

York Stock

Exchange.
Mr. Easton's only comment—for
publication—was:
"I

&

will

remain

with

Newborg

Company until things get bet¬

ter.",
Mr.

York

Easton

City

attended
Street

born

was

in

New

March 25, 1886. He
public
school at
77th
on

and

Amsterdam

Avenue,

Townsend Harris High School and
the City College of New York.
He

started

Street

with

Company
week.

firm

his

A.

as

a

Another
at

that

career

A.

in

&

at

a

employee

time

was

$10

of

the

Bernard

Baruch.

following year he moved
over to King Hodenpyl &
Co., pos¬
sibly influenced by the fact the
a

was

runner.

brings benefits

also have important uses in television,

It is

willing/to
In

Easton moved

1905

pay
on

$10.50 for

Dec.

2, Mr.

again, this time to

Newborg & Company, again




a

en¬

other indus¬

to many

tries and to many

product of original work

Transistor

equal performance and it does

people;

Bell Laboratories which

at

produced the

(mighty mite of electron¬

#

military equipment.

miniature units.

device

sizes

convert

amounts

sunlight into sub¬

of

electricity).

may

and thus

current

Yet the

theuse of
tech¬

new

also be applied

to

larger

provide entirely

and power

possibilities.

rectifier

nomically for telephone calls. It

not re¬

computers,

Its small size permits

new

current more eco¬

other metallic rectifiers.

niques

to

System the

supply direct

quire the bulky cooling equipment of

ics) and the Bell Solar Battery (first
stantial

The

firm

will

Wall

Housman

runner

The new silicon rectifier is an ex¬
jjjp The new rectifier is expected to have
ample of how telephone research, f an almost unlimited life span. It is
much smaller than tube rectifiers of
though primarily for communications,

In the Bell

new

>

can

industrial machines and
1

Many other benefits for telephone
users

tinue

and for all the
to

come

people will

from this

con¬

long-range

pioneering work .in electronics at Bell

Telephone Laboratories.

BELL

TELEPHONE

643

SYSTEM

Angelei

Jan.

Soriano

much stacked

so

1 i f.—Wil¬

Company,

rewarding enough if time and
taxes,
commissions
and
floor
spreads

th3

Mr.

previously with Rqy

the

can

of

Exchange.

Spring Street, members el

admit Jose M.

613

Huntington

Company.

Staats

New

Stock

affiliated

&

Co.,

A.

associated

members

ANGELES, C

R.

(Special to The Financial Chronicle)

WEST,

&

♦

William R. Staats Partne?
LOS

KEY

[

Ohio—George
become

Building,

Meinhart

photography.

Joins, Oppenheimer Staff

has

Vercoe

E. Hawk &

year all over the country.
Quite
recently he has taken up the study

and his

is

CdLUMBUS,
Meinhart

cial community.

all stock certificates

signature, by virtue
of total illegibility, is well known
throughout the financial district.

Joins Vercoe Staff

children and five grandchildren—
none of whom works in the finan¬

he

23

(Special to The Financial Chronicle)

member of the Leonia

a

Board of Health, and active in
Boy Scout activities. He has two

being transferred out of the firm's
name

Easton,

other

Church,

one

acquired

vice-president of the Up¬
Community

a

Ridgewood

per

modern

sibilities which the general public

and

He is

the

that

you

a

charged

Oh, direct tape reading is
derful

joying

to

1

will

limited

The Commercial and Financial

24

Continued

Again the

mortgage market.

from page 11

ex¬

' be

found in the
function being performed by the
planation
short

Interest Rates

can

market

Government

of

source

liquidity

for

as

a

fi¬

our

nancial institutions. This liquidity

and Credit Policy
short-term

on

Government
been

and

long-term

securities.

especially

This

nant

factor

in

the

public and private.
term

of

area

the

the

Treasury bills.
parable private
commercial

the

a

domi¬

total

debt,

In the shortcredit

sensitive

most

has

since

true

Federal debt became such

market,
is

rate

Rates

on

In

as

the

on

the

leadership

in

rate

the credit market.

ance

the

economy

in

under the influence

policies of the Federal Reserve.
The short Government market is
the

core

flected

and

to

the

the

bond

has

and

entire

easing

■?>#

of
This

true since
early 1951, when Treasury yields

particularly

reflect the pres¬

were

set free

sures

of market forces.

The

focal

to

of

role

Government

yields in the establishment of the
interest rate pattern is due pri¬
marily to the fact that the basic

liquidity

position

types

institutional

of

of

major

our

lenders

—

banks and others—is concentrated
in

Government

of

pressures

issues.

credit

When

demand

step

up, most types of

lending institu¬
portfolio of
Treasury securities as a supple¬
mentary pool of loanable funds.
tions

look

This
ury

to

almost

their

insures

that

Treas¬

yields will be the first to feel

selling

pressures,

money

to

,as the need for
begins to outrun

lend

repayments

old loans and

on

accumulation

When

banks

ments.

When

insurance

O

Govern¬

savings banks and

companies

mortgage

in

are

they sell short-

reserves,

intermediate-term

or

the

savings.

new

commercial

of

need

of

find

O

that

other

capital de¬
running ahead of the
funds they have for lending and
investing, they will first look to
mands

and

o

are

sales

their

of

Governments

•s

o

—

o

typically long- and intermediateterm

to

—

o

supply the balancing

factor.

•s

Government

therefore,

are

cornerstone

highly

than

more

of

each

of

turity sectors of the
capital market. Thev
most

yields,

security

ma¬

credit

and

are

sensitive
tend

yields

to

response
ance

ply.

of

•Cfa

to

Their
first

the

change in the bal¬

a

credit

And

be

to

ID

also the

shifts in the credit climate.
movements

o

the

the

demand

and

sup¬

being the basing-point

rates, Government yields rarely
change materially without fore¬
shadowing a fairly prompt ad¬
justment in
the
others.
This
relationship, and the timing of
the changes, can readily be seen
by examining

chart showing
yields on shortterm
and
long-term
Govern¬
ments, and the yields on other
paper in the money and capital
any

the movements of

markets.
Short-Term Government Yields
Reflect Bank

Reserve Positions

It is possible to

that

the

those

basic

show, however,

market

short-term

on

particularly the
short

rates

distinguished

bill

from

are

Governments,
Shifts

rate.

Government

yields

purely

(as

tem¬

V

3
V)

porary

week

-

to

-

week

fluctua¬

W
M

tions)

are

the best guide to future

changes in long-term

cluding yields
ernments,

nicipal

on

on

yields, in¬

long-term Gov¬

corporate

securities,

and




and

mu¬

in

the

or

restraining

authorities.

Changes in credit demand and

moves.

yields.

liquid re¬

supply factors for 1953 and
illustrate
this point
well.

spectrum

mortgage

been

liquidity

banks,

actions of the credit

Treasury yields
far without being re¬

in the

of the

and banks
are in the most exposed
position
to fluctuations in credit demands,
of

source

long

goes

of

of

municipal securities of various
grades
are
hardly
constant,
a

rarely

It is

needs

over-all

the

with

While spreads between long-term
Government
and
corporate and

move

elastic

banking system that creates
extinguishes credit in accord¬

being the major

longer maturity sectors
the market, moreover, yields
Treasury securities also take

of

or

really

pile,

that key rate.

on

sector of

only

the

com¬

typically move
in
keeping with changes in Treasury
bill yields, and, to a lesser de¬
gree, the whole short-term yield
structure hangs

comprise

at

bankers

and

paper

commercial

for

the

significant
banks,
which

particularly

thus

such

paper,

is

role

on

acceptances,

in

Chronicle

.

..

(2434)

*
4)

z

1954
The

side

supply

bank

in the commercial bank¬

ment

securities.

ments

sold

major

only

was

shift

on

the

The Volume of bank

ing system.

lending and investing in 1954

double

nearly
1953.

what it was in
factor, coupled with

This

slackening

some

was

in

demand

and

we

period

have been in an¬
of credit restraint,

trend

the

of

interest

has reversed again.
on

credit

has

been

rates

This restraint
achieved

in

large measure by limiting the
capacity of the commercial banks
to expand their total loans and
The

Federal

keeping

Reserve

has

been

banks short of reserves,

particularly
in
recent
months,
and, in the aggregate, bank credit
has grown very little this year.
Large
increases in loans have
been offset by large reductions in

exhuberance

attempts

to

unsustainable

the

on

part

of

by holding down
available
to

support increases in bank credit
and deposit money.
In a period

Federal Reserve Policy, the

Discount

We

have

Rate, and the
Interest

seen

banks play a key

that

Rates

role in the shift¬

Governments, and that the effects
short

and

Governments

To

uncover

the yields

intermediate-term
are

transmitted out

to all sectors of the

credit market.

the prime forces at

work, however, we must go

one

step back to examine the actions
of the Federal Reserve.
In

a

of

everyone

reserve

funds

receding activity, the Federal
endeavors to cushion the

contraction

commercial

of these adjustments on

the

Reserve

ing volume of credit supply, that
the shifts in supply typically are
accomplished by adjustments up
or
down
in
bank
holdings of

of

investments.

Reserve

excessive

contain

tive yields.

for

Level of

1955,

other

by banks have found

Federal

the

nearly

1954.
In

Govern¬

The

buyers in corporations and others,
but only at higher more attrac¬

short-term credit, was largely be¬
hind the sharp decline in yields
in

portfolios of U. S. Govern¬

Thursday, December 8, 1955

period of rising prosperity,

credit

and

through

by stimulating bank
monetary expansion

creating

an

abundant

volume of bank reserves.
If

we

study the basic

business

picture,
the
Federal
Reserve
policy actions taken to adapt to
that picture, and the administra¬
tion of the three major instru¬
ments of Federal Reserve policy
—

open

market

discount rate, and
serve

operations, the
changes in re¬

requirements—we

plain

most

basic

can

interest

ex¬

rate

trends.

Open
used

by

market operations
are
the Federal Reserve to

Volume 182

expand

Number 5488

reserves.

In

When this is the case, the

funds.

tendency

period

a

credit

is

to

the

use

discount

of

window

hope that something will de¬
velop that will make the sale of
Government
and
other
liquid

on

This

paper unnecessary.

ment

places

sition

where

they
at

until

they

can

positions

Governments
A

to

po¬

The discount rate is thus

time

otal rate, witn

into borrowing
Reserve, at least
adjust their re¬
either by selling

Federal

serve

time

from

a

building

by other

or

of such

up

increasingly

an

since

the low side or
on the high side of that rate, de¬
pending on the
extent of the

means.

pressure

be

various

In the

make prompt adjustments by
selling Governments as long as
they can do so at yields under
or
equal to the discount rate.

money

the

selling,

discount

the

then

becomes

the

rate

by

ual

discount

rate
source
of

.cheaper

period from mid-1951 to

banks

remained

the System.

to

govern¬

in

moved
From

went up

However,

fairly narrow range.
mid-1952
to
mid-1903,
a

long in debt

With this general

that

order to support

were
row

their

partly anticipated this move
in its prior rise, the rate structure
shifted upward still further in re¬
to the higher discount rate.
Subsequently, rates rose to post¬

sponse

this

their lending

ac¬

over

caused them

intensify

their

bank

at the Reserve Banks

continued.

from midbrought about a
marked reduction in the need for
Credit easing actions

1953 to mid-1954

aujust

to

on

banks to repay in¬

by

debtedness

subsequently to

efforts

efforts

as

and

bank

pressures

as

positions were maintained
the winter and spring, and

reserve

therefore, to bor¬
with increasing frequency at
Reserve

peaks

war

in

obliged,

Federal

Although the market

had

Individual member banks

tivities.

their dis¬

increased

Banks

serve

wanted

banks

steadily over the period.
early in 1953 the Re¬

count rates.

operations, the volume of bank

reserves

rose

Inter¬
mediate and long-term rates also

pressures

ket

been

mid-1952.

after

it

above

optional
bonds) fluctuated around 2%%.
Corporates and municipals also

ing to provide, through open mar¬

Over the pe¬
riod, member bank borrowings
tended to average less than $400
million, and few, if any, individ¬

sm«i

long-term
(the 2lk%

on

bonds

The Federal Reserve was not will¬

tially at neutrality.

security and other
market yields are forced

yield

three-month

on

Treasury bills, which had
below
the
discount
rate,

around

since the Treas¬

mid-1952, for example, Federal
Reserve policy was aimed essen¬

When Treasury

the

Rates

rates.

Treasury se¬
2%, and

year

hovered

in bank reserve
relationship
is
a
review of

by

periods

tnree-five

curities

itself

reflected in a rise in interest

was

of credit demand began
to accelerate, and a surge in eco¬
nomic
activity developed in the
fall
and
winter of that period.

ury-Federal Reserve accord.

encouraged

to

above

This

illustrated

well

rate,

on

ease

or

positions.

pressure

important

will

banks

piv¬

a

short-term market

yields tending

banks makes the discount rate

on

and

to

forced

are

the

banks in

many

less reluctance

development

This

repay.

bill rate remained below the

positions in order to

asset

their

borrowing, the Treasury
dis¬
count rate of 1 %%.
The yields

level

restraint, such as we
are
now
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the Federal Reserve
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to borrow

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has

*0

25

(2437)

The Commercial and Financial Chronicle

reduce the volume of

or

unborrowed

of

..

.

&
*

5

(Special to The Financial

BOSTON,
nor

has

Bache &
Mr.

become

&

associated with

Co., 21 Congress

Treanor

Mann

Chronicle)

Mass.—Vincent Trea-

was

Gould.

Street.

formerly with

26

The Commercial and. Financial Chronicle

(2438)

.

.

Thursday, December 8, 1955

.

Leib and Shurtteff

Bank and Insurance Slocks

Vice Chairmen of
Blyth

120

that

This Week—Bank Stocks
There

rather

are

wide

dispari¬

ties among banks in different sec¬
tions of the country with regard
to:

|

the proportion of their
gross income that must be set aside
to
provide interest on interest-

deposits; and, secondly,
ratio of
interest-bearing de¬
total

sections

deposits.

the

of

country

commercial banks take

the

functions

and

interest

stantially

of

In

some

the

large

savings

payments

banks,

draw

sub¬

gross income.

on

Far West
Dec. 31,1954

Income Required
en

Interest-Bearing

Interest-

Deposits to

Bearing Deposits

Total Deposits

14.3%

5.3

11.9

3

3.9

15.7

8.3

22.9

8.6

31.8

3

23.0

49.3

4

20.5

42.4

-

i—*

CO

32.7

6._.__ 20.1

48.9

7

6.4

G|ross

Dec. 31,1954

Income Required
to Pay
on

Ratio of

Interest

Interest-Bearing
Deposits to

Interest-

Bearing Deposits

Total Deposits

16.4
15.8

market.

7

8.9

25.5

8

7.1

15.6

9

7.2

18.7

Year-end adjustments of positions for tax
purposes are
prominent and" it is indicated that this kind of transaction

5.4

8.9

7.3

13.7

13.7

35.1

George Leib

again, the data used were
the larger banks in each

district.

As the Reserve banks do

break

down dhe

time

deposits

7.7%

24.2%

2

4.5

10.1

4.9

9.7

3

deposit item
and interest-

—

4

10.8

30.1

5

4.2

7.0

noted

that

the

Fed¬

stituting Reserve districts 1, 2 and
3; 4, 7, 8, 9, and 10 for the Midappears

two

and
with
a
interest-Bearing
deposits it may be said
areas;

ratio

of

that

volume

costs

11.5

them less than in the other

areas.

on

to

total

their

deposit

Robert

the
Dec. 31,1954

Ratio of

Interest-Bearing

S.

New

Byfield,

York

member

Stock

passed away Dec. 1 of
ment

at

the

a

heart ail¬

of 58.

age

of

Exchange,
Mr.

By-

Deposits to
Total Deposits

10.1%

2„.__

2.8

11.3

3

3.7

4—__

3.6

5

3.4

6

2.8

6.0

2.0

8

3.0

6.5

9

2.8

3.0

10

5.8

11.7

5.2

10.6

12

Averages—

parison

4.8

8.5%

the

Robert

com¬

geo¬

graphical sections, all among the
largest in the area. They were
chosen
the

at

three

largely

random.

confirmed

by

data
areas

the

began his

vestment

are

&

was

a

New York

the

with

in¬

Ames,

Co., Inc., later estab¬
own

firm.

Until

1947

partner in Lewisohn

&

(Special to The Financial Chronicle)

MIAMI BEACH, Fla.—Janet B.
Behrens and Murray Spies are
now

with

Bruns,

Nordeman

&

NATIONAL
of

INDIA, LIMITED
Bankers
Head

Bulletin On Request

West

Laird, Bissell & Weeds
Members New York Stock
Exchange

BROADWAY,

Exchange

NEW YORK

Telephone: BArclay

5, N. Y.

7-3500

Bell

Teletype—NY 1-1248-49
(L. A. Gibbs, Manager
Trading Dept.)

Specialists

in

Bank




Stocks

BANK

to

the

Government

Colony

and

in

Rocky

Moun¬

continues

headquarters

in

to

San

From
San

modest

a

Co., Inc., had
pansion.
cific

in

a

By

expanded

beginning

in
Blyth &
rapid national ex¬

Francisco

1914,

1920,
and

up

Coast.

the

firm

down

has

the

Immediately

Pa¬

after

in

strategic

the country.
& Co., Inc., is unique in
investment banking business

the

across

in that

it

in

has two

San

New

York.

firm

rests

home offices—

Francisco, and
The
in

direction

the

hands

committee,

which

of

are

the

divided

one

in

of

the

of

an

mem¬

about

certificates

offered

are

sale

the

of

certificates

are

subject to the authorization of the
Interstate

The

Commerce Commission.
is

following

End

(London)

Branch:

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

Protectorate.

Authorized Capital

Paid-Up
Reserve

Other

to

new

be

secured

by

equipment

es¬

members

of

the

offering
group include—R. W. Pressprich
& Co.;
Baxter, Williams & Co.;
Freeman & Co.;
Gregory & Sons;
Ira Haupt & Co.; Wm. E. Pollock
&
F.

Co. Inc.; McMaster Hutchinson
Co.; Mullaney, Wells & Co.; and
S.

Capital
Fund

The Bank

£4,562,500
£2,851,562
£3,104,687

conducts every description of
banking and exchange business.

Trusteeships and
also

Executorships

undertaken

obliga¬

refunding.

new

conditions which

conditions, it

was

was

made, but be¬

developed, attributed to the tight

necessary to make switches into the

one-

On the other hand, there have been cases where
has been bought at the
expense of the 2%% obligation.

the 2%%

Market Reaction Not Too Good
The

reception which

was given
to the refunding issues was
to be not too good.
It seems as though the 2%s and
2%s would have been received in a somewhat
different manner if
the money market had not been
so tight, and if the
powers that be
had given a bit more
help to the refunding operation of the
Treasury. The size of the attrition, about $900,000,000, which came

about in this

exchange for the maturing obligations attests to the
tight conditions which are
prevailing in the money markets. Ac¬
cordingly, the Treasury's new money offering of $1.5 billion of
99-day tax anticipation bills was larger
by $500 million than had
been expected. This
offering should be very well received.

Lack of Value to

Yantis &

Co.

ber

15

were

funds

was

Refunding Offer

on

given to the holders of the Decem¬

maturities apparently was

satisfactory as far as the rates
concerned, but there was no value to the "Rights" because
were not
ample enough to create an important demand for

the new securities. Just the
same, the one year 2%% obligation
did meet the needs of
those that had to have a short-term
liquid
issue and there were
many investors that were well satisfied with
this security. As for the
2%% note, it was well liked
by those that
could take a somewhat
longer maturity. It is reported that cer¬
tain dealers in Government
obligations were attracted to this issue
and there was no hesitation
on their
part to suggest the exchange
into the 2%s where it met the
requirements of investors. It was
being pointed out that if interest rates should ease in
the not too
distant future, the 2%%
coupon rate would be a valuable one to

have.

The intermediate-

lerm

government obligations have been un¬
moderate amount of pressure because
of the refunding
oper¬
ation, plus the tendency which is still evident to move out
of these
obligations into the longer maturities.
Nonetheless, there has been
and indications are that there will
continue to be, not a few inves¬
tors that are
building up modest positions in selected issues of the
middle maturities
through swops from short-term obligations.

der

a

Long Bonds Seen Desirable
The

longest Treasury bonds are the center of an
amount of
switching, because it is evident that these

increasing
exchanges

will have to be consummated
by the end of this month. The 2V2%
bonds due September and
December, 1967/72 appear to be going
into what is termed
strong hands, even though the tax swoos which

being made have brought a certain amount of
selling into
Support for the most distant Government
obligations
continues to be found in the
market, because the belief still per¬
sists that now is a
good time to pick up these securities.
these issues.

PHILADELPHIA, Pa.—The

at

Officers

3520

are

Thomas

bons, President;

for
A

over

in

50

Jr.

the

who

the

had

investment

years.

member

X.

Gib¬

Ripley

R.

Gib¬

was

President; William M. Gallen, Jr.,
Secretary; and J.
O.
Gibbons,
Treasurer.

Boyd

succeeds

banking business in Philadelphia

F.

Dowling, Vice-

Arnold

active

staff

of

since

organized

Arnold

William

of

partment,
as

in

Harri¬

the

and

Battin

as

Municipal

Clifford

M.

De¬

Jones

Cashier.

E. F. Hutton Partner

as

Manager of its
office, 1529 Walnut

Edward

been

Patrick

bons and Hugh W.

Mr.

A.

Manager

has announced the
appointment of

late

Hampton Avenue.

in¬

banking firm of Harri¬
Ripley & Co. Incorporated

Street.

LOUIS, Mo.—Mid Continent
Securities Corporation is engag¬
ing in a securities business from

Ripley

vestment
man

appointments

Ripley's Philadelphia branch

man

include

For Harriman

Philadelphia

ST.

Other

Arnold, Phila. Mgr.

Eugene Arnold

Inc.

Mid Continent Sees.

offices

"Rights"

The option deal which

are

issue

cost not less than $9,375,000: 6 diesel electric passenger
locomotives; 26 diesel electric road
switching locomotives, and 100 all
steel, covered hopper cars.

&

new

too many were obtained in the

exchange which

of

cause

money

at

prices to yield from 3% to 3.45%,
according to maturity. Issuance
and

or

It is reported that there were
instances in which the 2% % was
not the favored issue in the

War I, the firm began to
its eastern offices and today

open

Office:

13, St. James's Square,
Branches in India,

making changes in their positions of these two

World

Uganda

26
Bishopsgate,
London, E. C. 2.

been

tions because too few

1933

timated to

Bruns, Nordeman Add Two

Kenya

Stock

the

Shurtleff
his

The

Co. of New York.

Guaranty Trust Co.

120

in

career

of the Treasury is still being
digested
by the Government market because some of the new issues have

yet to find the permanent homes which
they will eventually. It
is_ evident that not a few switches are being made between the
2%s and the 2%s and
vice-versa, since there are those that have

opera¬

is in charge of the
operations on the Pacific Coast.

Co.

oper¬

Banks:

American

of

in

Francisco and

one

refunding operation

considered

Roy

Byfield

business

lishing his
he

S.

for

ating ratios material published for
1954 by the 12
Federal Reserve

Members

east

York

charge of

tains.

the

The

geographical

field

Emerich

three

overall

San

UU, maturing semi-annually July
1, 1956 to Jan. 1, 1971, inclusive.

3.7%

in

New

to

from

moved

offered $7,500,000 of Chicago, Mil¬
waukee, St. Paul and Pacific 3%%
equipment trust certificates, series

2.4

were,

Leib

A group headed by Halsey, Stu¬
art & Co. Inc. yesterday (Dec. 7)

6.8

The banks utilized for the

in

Kalsey, Stuart Group
Offers Equip, Tr. Glfs.

6.7

7

Francisco

equally between those two cities.

8.9

Refunding Offer Being Digested
The

year certificate.

George

executive

15.4

*

San

1914.

bers

6.6%

4

Vice-Chairmen,

Blyth

Bank No.
I

new

business in

cities

Robert S. Byfield

20.3%

Interest

two

has 23 offices located

46.5

Interest-

The

make

to be at

advantage in that the pro¬
portion of gross income required
to service interest-bearing depos¬
its is considerably less than in the
smaller

Northeast

Executive

Chairman.

as

tions

the Northeast

areas,

15.3

to Pay

continue

con¬

graphical

7.0

Bearing Deposits

Chief

and

as

Charles E. Mitchell, who joined
Blyth & Co., Inc., in 1935, will

Francisco

three

the

7.0

Income Required

President

remain

Officer.

and is in

in

8

% of Gross

will

geo¬

banks

7

7.2%

announcement,

vidual

16.8

Averages.-

Charles R. Blyth, who made the

closely
bears out the figures of the indi¬

other

13.3

and

the

5.8

-

York

of San Francisco.

interest.

6

9

New

along with Charles R. Blyth, are
three of the original founders of

some

'

Roy L. Shurtleff

George Leib of
Roy L. Shurtleff

portion of total time depos¬
its; the bulk of time deposits bears
be

will

supply the major part of the volume and activity in the
Government market for tne balance of
the year. The size of these
switches is not the all-important
factor, but rather the large num¬
ber of them which are
being made.

small

will

very

continue to

17.3%

6.9%

The Northeast

1

during the year. The refunding operation of the Treasury did
bring with it a very modest amount of help from the powers that
be, but this did not, and evidently it was not intended, to relieve

6.9

West; and 12 for the Far West.

Bank No.

monetary authorities

rise

eral Reserve Bank material

Mid-West

be as tight as ever, because
are still keeping the pressure on it.
The
this week in commercial
paper rates marked the 12th increase

the

7.1

of

It

% of

The money market continues to

Chairmen,

-

6

bearing deposits, time deposit fig¬
ures
are
used.
For most large
institutions non interest - bearing
time deposits are a comparatively

36.1%

-

has

credit-limiting policies which are being carried out. The
inflationary tendencies appear to be as forceful as they have been
and, until thes is some evidence of a slowing down of this
trend,
there is not likely to be
any lifting of the tightness in the money

23.2

Averages.. 15.8%

Vice

By JOHN T. CHIPPENDALE, JR.

announces

directors

the strong

-

5

two

Governments

on

5

into

24.6%

of

Reporter

Wall

6.9%

2——

that,

not

2

I

Deposits to
Total Deposits

2.1%

Here

Ratio of

Interest

Bank No.
1

Pay'ts to Gross
Current Income

Averages—

% of Gross
to Pay

% of Time

4

of

on some

board

elected

% of Interest

1

bearing
the

the

Our

Blyth

14

District—

first,

posits to

Co.,

Inc.,
Street, New York City,

By ARTHUR B. WALLACE-

=

&

21

the
the
years

Harriman
company
ago,

Mr.

E.

F. Hutton
& Company, 61
Broadway, New York City, mem¬
bers

of

change,

the New
on

Jan.

York

1

will

Stock

Ex¬

admit

T.

Kenneth Ellis to limited partner¬

ship.

Robt.
On

Timpscn Acmits

Jan.

1
Robert Timpson &
Co., 63 Wall Street, New York
City, members of the New York

previously held the post
of Manager of the
Municipal De¬
partment in the Philadelphia of¬

Stock

Exchange,

will

fice.

Gpnrop

F.

nartnershin.

Painp

tn

admit

Volume 182

Number 5488

.

.

.

(2439)

The Commercial and Financial Chronicle

Continued from page 7

exception. During nicipal bonds of good to high
1955, some quality offer attractive opportuni¬
$4,884 million were marketed. It ties for bank investment.
is interesting to observe that de¬
spite the substantial amount of
J. Allen Harlan Opens
flotations, they were readily ab¬
DAYTON,
Ohio—J. Allen Har¬
sorbed by the investing fraternity.
lan
is
conducting a
securities

has

been

Tsolainos to Admit

no

the first ten months of

Why Municipal Bonds Are
Desirable Bank Investments
tion

when

next

spring, commercial bankers

Congress

reconvenes

consisting of $29,300,000,000 gen¬
eral obligation bonds, and $9,500,-

are

very much interested in the
outcome of that legislation.
State and Municipal indebted¬
ness

outstanding
estimated

was

Dec.

at

31,

1954,

$38,800,000,000,

000,000 "Revenue
On June 30,

that
the

debt

was

commercial

counter"

sounds

terious.

But

among

Insurance companies

3,700,000,000

listed

lessens

$500,000
800,000
300,000

Corporations
U. S. Government accounts

Savings and loan associations
Corporate pension funds, nonprofit

Federal

authoritative
municipal
varied from as

to

the

is

wide

maturities

bonds

adaptable to any
gram.
The majority

as

us

now

the

review

advan¬

bonds as in¬
vestments for bank portfolios.
A
prime requisite in the analysis of
any

of

municipal

investment security is its past

record.

Referring to a survey
made by the Municipal Finance
Officers'
Association,
they
re¬
ported
before Congress in the
latter part of October, 1935 (the
peak cf municipal defaults), that
less than 2% of all political sub¬
divisions in the country had been
in default.
At that time, it was
estimated that there were 175,369
taxing subdivisions
in
nation.
Subsequently,
the

separate
the

those defaults were
paid in full. Contrast that to the
more than
250,000 private corpo¬
majority

of

rations that have failed with
financial

recoverable

1929,
the

loss

the

to

vigorous cities and

bank

the

states,
officer has

portfolio

available
investment

of

and

that

will

be

it indicates the

as

annual

average

rate

earned

or

on

return

the

obli¬

gation if held to maturity.
Even though the marketability
of

commodity is normally a
of supply and demand,

any

function

municipal

cur

choice

usually

price,

the

municipalities ranging
in size from the smallest hamlet
With

dollar

a

non-

bonds.

relative

facility

bonds

with

which

be

negoti¬
ated
has
long been recognized.
Although not comparable to U. S.
can

Government obligations, in hav¬
ing such close spreads, the mar¬
ketability of municipal bonds is

excellent.

Their

distribution

practically an unlimted selection

strong financial groups is
responsible
for
the
secondary

of credits to choose from,

market

both

diversification

extensive

economically.

geographically and
Should

offering

policy

investment

the

prohibit purchasing bonds of socalled
one-industry communities
(e g., Detroit, Gary and Longview,

there

Washington),
other

cities,

are

and

towns,

many

political

subdivisions from which to select
credits

wherein

balanced

a

econ¬

prevails.

omy

An eminent reason

why munic¬

among

being more widespread
today than ever before. Differ¬
ences in quality of a credit, cou¬
pon rate, and maturities are some
of

the

underlying

factors

mining marketability, but
the

"General

obligations

deter¬
any

of

Market" municipal

will

usually be sal¬
difficulty.
The supply of municipals has
been increasing since World War
II, due not only to the
pent-up

able without

demand

by

ipals

are considered attractive for
bank investment is the exemption

municipalities
for
many capital improvements that
were delayed by that
conflict, but

of the interest from existing Fed¬

also

eral

income

taxes.

rate

income

tax

the corpo¬

If

rate

remains

as

Another

important

feature

to

their

meet

the

expanding

exigencies

population

of
as

well.

high as it is today (52%), munic¬
ipal bends will continue to be
favored for that reason, if for no
other.

New

municipal

securities, in¬
cluding
revenue
bonds,
issued
during the past -10 years, have
averaged approximately five bil¬
of lion dollars annually. This year

Yield and Graphic Comparison of I

Various U. S. Treasury, Municipal, and Equipment Securities,

Reflecting Effect of Federal Taxes (52% Bracket)
J/n. 1,

3-15-1958/56

U.

S.

1955

1955

1.45

1.70 'Z

1.60

1.08(0.52)

1.85(0.89)

2.05(0.98)

Treasury 1.23(0.59)

2.38(1,14)

2.41(1.16)

2.75(1.32)

3.00(1.44)

5-year "A" Municipals

11-15-1960 U. S. Treasury—

5-year Equipment Trust Certificates
10-year "AA" Municipals

10-year

Equip't

♦Considered

Trust

to be low noint

reflect yield after Federal

Treasury

Certificates

1.75(0.84)
1.30
1.45
2.21(1.06)
2.55(1.22)
1.65
1.90
2.52(1.21)
2.90(1.39)

1.90

2.20




1.75
2.00

.

2.74 (1-32)

2.55(1.22)

3.05(1,46)

320(1.54)

2.20

2.00

:

2.65

2.30

2.88(1.38)

2.74(1.32)

3.15(1.51)

3.30(1.58)

in Municipal Market Jan. l-Nov. I,

taxes.

Nov .1,

1.50

5-year "AA" Municipals

10-year "A" Municipals
2\k% 6-15-1987/62 U. S.

Yield

1955

1-year Equipment Trust Certificates

2Vs%

on

♦Aug. 15/20,

0.90
1.00

1-year "AA" Municipals
1-year "A" Municipals
U. S. Treasury Bills (91 days)
21/2%

the

1.955.

Figures in ( )

will admit
partnership.

Brown Kiernan Partner

have

Aloysius

J.

East

44th

in

month

ROSELAND, N. J.—Associated
Securities
Company
been formed with offices on

Investment

engaging in

a

has

Fernwood Avenue to engage in a
York securities business. Alexander G.
Evans is a principal of the firm.

Street, New

City.
-

bond

prices
September.

of

have

been

on

said

It has been

BANK OF NOVA SCOTIA

THE

ESTABLISHED 1832

F. W. Nicks

H. L. Enman

General

President

$25,000,000

that the fluc¬

record

The

periods.

that

sustain

theory

it

to

week

ago.

a

about

at

REST ACCOUNT

$15,000,000

$35,000,000

is

compared to 91-day U. S. Treas¬
ury Bill weekly averages which
have ranged from a high point
of 1.049% at the beginning of the
year

CAPITAL PAID-UP

to

appears

when

UNDIVIDED

Branches

across

TORONTO, CANADA
Canada and in:

CUBA

JAMAICA

During the same period, one year
or
less "AAA" municipals great¬

PUERTO RICO
TRINIDAD

DOMINICAN REPUBLIC

approximately
LONDON, ENG., 108 Old Broad St.

.50% against 1.40% for the Treas¬

Bills.

ury

PROFITS $1,026,682

GENERAL OFFICES:

low of 2.44% just a
They are now quoted
the latter yield basis.

est fluctuation was

Manager

CAPITAL AUTHORIZED

tuations of tax-exempt bonds are

usually less than other types of
bonds
during abnormal market

NEW YORK, U.S.A.,

37 Wall St.

A further

possible indication of
the market trend was established

reversed a
precedent of some years standing
by defeating about a billion dol¬
enough,

Bldg.

worth of them.

the

municipal

by

continuing

with

new

Accordingly,

responded
upward trend

market

its

issues

commanding

higher prices than was evi¬
denced only a few weeks previous.
much

This, perhaps, is one of the most
conclusive examples of the oper¬
ation of the law of supply and
demand.
While less than two weeks
more

CONDENSED STATEMENT
AS AT 31ST OCTOBER, 1955

ASSETS

voters

the

lars

a

CHICAGO, U.S.A., Business Development Dept., Board of Trade

few weeks ago,

when almost 300
municipalities
and
states
sub¬
mitted proposals to the voters for
their approval, totaling approxi¬
mately one and one-half billion
dollars
of
bonds.
Surprisingly
a

optimistic

view

of

Canadian Government securities not

exceeding market value

236,300,505

.'

stocks, not exceeding
76,398,522

market value
Call loans

81,690,108

(secured)

Other loans

and

discounts

vision for estimated

(less

pro¬

584,418,552

loss)

Customers'

liability under acceptances
and letters of credit (as per contra)..

ago

Bank

the

Controlled

municipal market, for the balance
of the year, was prevalent, the
situation today suggests a more
cautious tone due to the visible

$180,540,320

Cash, clearings and due from banks....

Other bonds and

17,924,202

11,114,934
4,029,487

premises
Company

550,796

Other assets.

$1,192,967,426

supply of new issues being slightly
above average. However, none of
the new financing will approach
the size of the huge issues mar¬
keted during preceding months.

LIABILITIES

=====

Deposits

$1,120,934,324

Although several potentially
large issues are reported to be
under consideration, they are

Other liabilities.

Acceptances and letters of credit
outstanding.

Shareholders''

$i,141,940,744

Equity

Capital paid-up........... .$15,000,000

pected to develop until next year.
An ample supply of bonds, a

Undivided

record

of

prompt

payment,

ex¬

emption from existing Federal in¬
come
taxes, a broad diversifica¬
tion of credits, and a wide choice
of maturities emphasize that mu¬

profits

17,924,202
3,082,218

mostly
confined
to
"revenue"
bond projects, and according to
informed
sources,
are
not
ex¬

Rest account.

Con¬

Associated Inv. Sees.

principal of the firm.

Herbert Rapp is

admitted

nolly to partnership in the firm.

securities business from offices at
11

Wall

Street, New York City, members
Exchange,

of the American Stock

Since then,

pressed in percent: rather than at

since

and it points out sharply
safety record of municipal

for

the

a

Herbert Rapp Opens

municipal bond prices
the upswing.
(See
pro¬
accompanying table.)
of general
In retrospect, the low point of
obligation bonds floated by mu¬
the
municipal market occurred
nicipalities are issued in serial
about Aug. 20 of this year when
maturity form. They may mature
the
average
offering yields of
from 1 to 20 years, or 1 to 25
"AA" rated municipals due in five
years, as is the situation among
and ten years, were at 1.95% and
our Middle West credits. Current¬
2.23% respectively. Presently-, the
ly, banks purchasing them confine
yields for the same brackets of
their commitments to the 1- to
maturities show 1.76% and 1.95%,
10-year maturities although some
which is a dollar appreciation of
institutions will go beyond that
approximately a half point and
range.
;-js *
two and a half points for a 2%
Customarily., municipal bonds bond.
are offered
on
a
yield basis, ex¬

sources, the holdings of

12% of their total assets.

pre¬

responsible
turn

downward

Miller is

1

1

general

was

until

municioals

the

and

Reserve

Jan.

on

Doris V. Tousey to

municipal bond

firming of money rates

dominately

$37,300,000,000

Let

mar¬

during 1955, has largely
followed the path taken by gov¬
ernment and corporate bonds. The
restrictive policy adopted by the
2,300,000,000

tages

Street, New York City, to engage
in a securities business.
Sidney

no way

detracts from its

or

has been
116 Broad

Securities

Selective

formed with offices at

bond is not

a

exchange in

any

The trend of the

700,000

much

largest

market,

as-

fsociations, etc._

as

on

change,

80

at

Form Selective Sees,

ketability, nor the ability to ob¬
tain a quotation on it.

Mutual savings banks

to

The fact that

tions.

Miscellaneous (000's omitted):

by banks
little as V3 of 1%

To

bonds, both public
and corporate, are traded in the
"over-the-counter"
market,
in¬
cluding U. S. Government obliga¬

$14,800,000,000
12,000,000,000

office^

Co.,

&

Wall Street, New York City, mem¬
bers of the New York Stock Ex¬

Brown, Kiernan & Co., 60

and mys¬

the

far

from

Tsolainos

Theodore

Meadow Lane.

"over-the-

vague

by

business

amounts of all

following types of holders:

banks

market.

phrase

distributed

4,500,000,000

According

that

many

Public funds (consists of trust, sinking and invest¬
ment funds of state and local
governments)

'

"over-the-counter"

1954, ownership of

Individuals
All

Bonds."

While on the subject of market¬
ability, it should be noted that
municipals
are
traded
in
the

27

35,000,000

1,026,682
51,026,682
$1,192,967,426

28

The Commercial and Financial Chronicle

(2440)

Continued

from

50 "blue

5

page

in

chips," but is lower both
In order to

price and quality.

give them the same proportionate
weight, despite the big differences

Outlook fox Stock Prices

in their

shed

some

additional light on the

movements of stock

Normally, price-earnings ratios
and current earnings move in op¬

directions.

posite

the

cause

ratios

is

This

so

be¬

compensate

for

the deviations of current earnings

from

spite

earning power. Instead, de¬
the fact that current earn¬

ings

resumed

middle

rise

their

in

the

of

1954, the ratios, which
should have been declining, con¬
tinued
to
advance
through the
third quarter of 1955.

In

so

doing,

they magnified the already steep
progress
of
current
earnings,

bringing

about

forward

sharp

a

thrust of stock prices.
A careful examination
ure

of

1 will demonstrate that

current

in

movement

direction

of

all

the

a

Fig¬
con¬
same

three

factors, i.e.,
of stock prices, current earnings
and- price-earnings
ratios is an
unusual

takes
than

time
could

Whenever

occurrence.

it

place, it rarely lasts longer
single quarter. The only

when
be

such

development

a

witnessed

particularly

on

an

annual

the

period covered
in 1942. It was
pronounced
in
the
was

recond quarter of that year, which
caw the end of a long decline and

marked the

beginning of
rise of stock prices.
terms

of

a

they indicated the exist¬
a
phase of overspecula-

approaching
Since

the

historical

only

change

a

trend.

of

beginning of available
data, i.e., since
1871,
be

tew such cases can

a

re¬

corded. The most clear-cut among
them

the

were

and

1907

years

when price-earnings ratios
were declining, and the years 1901
and 1929 when they advanced.
1942,

direction with simultaneous¬

ly rising
or
earnings and

The

fer

numbers

shares

of

the most direct

serving

traded

probably of¬

means

for ob¬

changes

in

dynamic

shaping the price trends.
they express them in simple
physical terms which are less sub¬
ject to risk of misinterpretation
And

than

some

plex

other

and

dex

price

of

stocks.
ative

is

more

com¬

measures.

The

advance

the rate of the fall of

the

forces

are

or

mean.

vthe

extraordinary

a

appearing

at

combined in¬

high grade and secondary
It contains

equities.

100

represent¬

Fifty among them

identical with those composing
index shown on Figure

the price
1;

Each of the
a

remaining 50 stocks

close counterpart of one of the

grade

general

public

preponderant

of

ume

trading

tion

If

this

of

with

reads the 1954

one

in

index

the

Our

stocks

ilar

index

the

The

of

of

or

the chart is

in

rise

the

and through the

The

lower

pictures

half

second

the

of

1954

beginning of 1955.

portion

Figure 2

of

respective

monthly
trading in our 50 quality and 50
stocks as percentages

secondary

of the total volume

on

the N.Y.S.E.

the

stocks

of

largest and strongest
But it does

behavior

ized
on

the

also

not

ex¬

companies of sim¬

of

index

our

un¬

doubtedly

teristics.
line

high

only slightly lower stature.

investor

a

stock

50

our

contains

the

Figure 2, one
gets
a
clear impression of the
presence of two distinct charac¬
on

in

illustrates

corporations.

conjunc¬

movements

other four lines

the

a

increasing selectivity of investors.

haust the list of

action

plays

The decline in the relative vol¬

of that year.

took

in

role

most

which

still

market.

rise in stock
place in 1954,
especially in the last two months

prices

almost

reflects the shifts of
preference. In a period
unchangeably character¬

by change,

new

constantly bring
industries

and

used

stocks

following.

to the forefront

enterprises
have only

to

of

small

a

on

them, their

trading grows at the

of

expense

whose

As investment interest

increasingly centers
volume

technologies

the

traditional

more

Price

Ratio, and does so in a more

of

1954

price and relative vol¬
action, "by quality stocks.
Trading in secondary stocks came
ume

the

to

tively
the

activity

growing

in

relative

the

traded.

As

occured

an

expression

it

volume

between

of

the

middle

of

rapid rise in the relative volume
of

secondary stocks. This
outlook

as

the

est

of

shares

On the

contrary, the relative vol¬

of

secondary ] stocks
has
shown
greater
stability.
Ap¬
parently, and despite the rising

ume

characteristic

was

due

ure

the

for

enter¬

a war economy.

umes

through

1955




1939

-.1940

1941

1942

1943
_

1944

1945

1946

1947

Statistical Limits of Fluctuations

is

the

third

Price

same

Ratio.

traded

stocks

line

Fig¬

on

construction
The

each

number

month

comprising

in

the in¬

of Stock Prices

,

Statistical
of

prices

some

ing

trends.

nominator

contains

the

de¬

monthly

Yet while

exercise

may

Figures

limits,
an

3

annual

basis.

and

,

its

1949

1950

1951

1953

1953

a

trend

i3

■

•

and

momentum.

indicate

4

respectively

such

computed
',

•

on

quarterly

on' a
,

•

M '

Each chart is the result of three

multiple

correlations
based
on
high and low prices. The

respective

the

furnish

position of

they cannot project
probable limits within which

mean,

while

the

progress,

in

numerator,

to

.

value,
price-earnings ratios and the un¬
derlying structure of the prevail¬

dex of secondary equities appears

the

as

\

relations

volumes

and

clues

'

and

norms

stock prices with respect to

relevant

1955

1948

unlike

not

is

declines in stock prices.

it

monthly Ratio of Volumes

2—has the

50

marginal

FIGURE 1

1938

the

and

similar developments in the past,
which were often precursory of

formulae

statistics

RANGE

1954

1955.

and

data

THRU

100

1937

a

the funds of
Nevertheless,

of

steep decline of the Ratio of Vol¬

shares

1943, a sharp drop
in the relative activity of "blue
chips." It was compensated by a

which

decades.

portion

was

of

channels

the small investors.

Figure 2 shows, there

1942 and that of

quality stocks has been consist¬
ently' declining since 1947-1949.
Early this year, it touched its low¬
two

was

the

IV

The

point in almost

probably
siphoning off

This

of

institutional

Changes in underlying economic
conditions also find

our

of

mild.

result

into

media.

prises in
relative

The

of

speculative phase ended

early in 1955. Compared to some
previous similar manifestations of
speculative activity, it was rela¬

in

as¬

half

the second

in

fore

1954. This

the

other

The earlier months
dominated, both as

were

to relative

able

few

a

stocks.

dynamic form.

above

adds

50 high

of

umes

to the emergence of a more favor¬

and

index

the

of

The Ratio of Vol¬
tells the same story as the

It confirms the observations noted

pects.

index

volumes

the

grade

This combined index emphasizes

The second

the stock market

on

declining
current
prices, and
thereby amplified the rate of the
stock

geometric

a

joined

monthly Ratio of Prices of the
two averages of 50 secondary and
Activity of Transactions
50 quality stocks.
The averages
So far we have considered stock
of monthly closing prices of sec¬
prices with relation to economic
ondary stocks stand in the numer¬
norms: those of normal value and
ator of the Ratio.
Although this
normal price-earnings ratios.How¬
Price Ratio never reached, in the
ever, as is well known, fluctua¬
more recent years, levels compar¬
tions of stock prices often stray
able with 1937 and 1946, it did
away from such norms.
register, nevertheless, a marked

top of Figure 2 is

annual

together by

m

Differential Action of Prices and

major

data, when
price-earnings ratios moved in the
came

of

tion and signalled that stocks were

a

basis, during
by Figure 1,

In

stocks,
ence

prices.

influence of institutional investors,

respective price levels, the

two 50-stock averages were

Thursday, December 8, 1955

.

.

.

1956

are

1

other
noted

NOV.: 15

V

charts.

the

on

Number 5488

182

Volume

tional

that

of

power

move,

as

computed high prices and be¬
low the computed low prices each

does

three standard errors.
They draw the statistical limits
which stock prices are unlikely to

annual and the quarterly ranges

transgress.

had

encompass

Both charts

lations
the

1937,

in

corre¬

though

order

to

is reproduced only
They are each com¬

it,

1949.

since

on

even

chart,

quarterly

magnify

based

are

since

puted by correlating current price
with the price of the preceding
annual or quarterly period
and
the current period's annual divi¬
dend rates. In addition, the quar¬

annualized
quarterly earnings. Both charts
are expressed in terms of our in¬
dex of high grade stocks.
chart

terly

As

also

to

was

be

the

correlation

the

influence

current

uses

and as
formulae
show,

expected,

and

dividends

of

small.

is

earnings

It

In

order

Figures

to

the
of

both

project

and 4 into 19.56, esti¬
earnings and dividends
be made.
At the time of

3

of

mates

to

this

writing, there is no suffi¬
convincing evidence for
forecasting either markedly high¬
er or lower earnings. Accordingly,

ciently

have been assumed to re¬
main unchanged. It will be noted
that
the
same
assumption was
they

made

the

are

projections into 1956
As far as dividends
concerned, their 1956 level

was

estimated to

on

Figure 1.

on

annual

rate

found

yet

annual

able

rates

still

their

They were
because many

5%.

by

tax

an

and

index.

our

its

level and of almost
September high.
decline
could
conceivably
from

The

continue

by

4.

ure

for

ent

point.

But

statistically projected

of the formula
of Fig¬
Its most essential ingredi¬

yet

as

that

beyond
means

used for the

construction

projecting

statistical

the

prices

the second quarter of
price range of the first

in

1956 is the

which

quarter,

the future's

in

If

turn

we

is still shrouded
impenetrable veil.
attention to the

our

annual projections of
will

that

observed

be

Figure 3, it
entire

the

of possible statistical limits
stock prices in 1956, in terms

range

of

account

of

between

our

111,

is

average,

encompassed

approximately

74

and

against an actual 1955
to date of 89 and 108.

as

range

However,

even

if one assumes
taking place, the

quarter, i.e., of the
trend momentum itself, looms as

i.e.
the
quarterly
the situation in
greater detail. It suggests a re¬
versal of the upward trend.
For
the first time since the beginning
of the rise in the last quarter of

factor of trend
On this basis, the for¬

1953, the quarterly range of stock
prices cut through the line of

width of the lower band which is

computed mean prices and pene¬
trated into the lower band.

has

would
it

had

been

have

smaller if

even

for

been

not

the

tions among the factors

influence of the price

ceding
the

interac¬

used. The

of the pre¬

year or

dominating

building.
mulae

show

the

existence

of

a

high order of relationship, espe¬
cially for the quarterly computa¬
tions.

bands of possible
fluctuations
are
quite wide. It
would be wishful thinking to ex¬
The resulting

pect statistics to provide pinpoint

guidance. Even at that, on
annual
basis, as illustrated

an

by

1954 and 1955,
exceeded the alloted
limits.
For
quarterly
ranges,
shown on Figure 4, this was the

Figure

3, both in

stock prices

case

only

the

in

last

quarter of

1954, and then only slightly. This
the only occurrence of either

was
an

upside

or

penetration
onstrates

downside quarterly

since

once

1937.

more

It

the

dem¬
excep¬

Figure

chart,

4,

presents

that

a

reversal is

would

decline

contained
rather

based

likely

within

than

on

a

been

be

to

standard

one

the

from

error

be

computed

low

the

full

penetrate

triple deviation. Such
the

since

experience

This would raise the lower

1937.

reversal

limit of the projected range from

actually took place, then, in the
light
of past experience
since

approximately 74 to approximate¬
ly 82.
This projected 1956 low
of a possible decline is 23% below

If

one

that

assumes

a

1937, i.e., going back beyond the
scope
of the published segment

the current level

If

of the chart, one would expect an

extension of the decline, sometime
within

the

next

vicinity

lower
in

the

of

the

Such

band.

1937,

few

quarters, to

edge
was

the
case

1940 and 1946. In 1953,
penetration
was

downside

the
more

shallow, but the decline be¬

gan
from
valuation,

In

case

position

a
as

ter of

of

the

a

rebound

then

be

from

likely

to

in

the

computed

98

and

it

level.

106.

of about

decline does actually occur,

could

its

find
high

stop

would

low

at

ceiling

a

of
a

about
lower

But it could hardly be ex¬

a

first

a

of

In
the
a

vs.

Analogy

rounding out this survey,
temptation is strong to write

bearish ticket.

is most comparable

the century and
World War I,

of

tum

the

the

that

suggests

rise

is

momen¬

losing

steam.

Many other indicators stand in

positions

often

important
Among

them

odd-lot

that

coinciding

with

market

tops.

stock

can

mentioned

be

traders

enthusi¬

are

astic buyers and that stock
as

well

as

yields,
yields on

their ratio to

highest grade corporate bonds, are
very
low.
They are shown, in
inverted

position, on Figure 1.
And bond prices themselves have
been
in a long
declining trend
which is often precursory of a
turn in stock prices.
All this is
an

taking

place

against

backdrop

a

of

tightening credit conditions,
which are already in the fourth
round of rediscount rate increases

last

since
in

April. Persistent rises
rates are a notorious
depressant. And the very

money

stock

fact

that

the

continues

boom

to

pile up unprecedented records is
a
frequent companion of stock

prices that
The

are

tapping out.
of these

concurrence

vari¬

the beginning of

when earning power
was
building up
strongly and
remained at a high level for many
as an aftermath of what
amounted to an industrial revolu¬

years,

not a fewwell.
During

tion of which there are

earmarks

now

that period,

as

stocks remained in a

position of theoretical overvalua¬
tion
with
investors capitalizing
current earnings on the same

a

moving

12-year

used

average

Its capitalization seems to
adequately reflected value

power.

have

during

the

period

of

exercise

of

judgment.

ceivable that
into

a

we

may

period with different char¬

acteristics;

that

a

structural

change is taking place in the level
of
normal
earning
power
of
American
Not

indications is

corporations.

only, does

current

the

impressive. Yet
the danger is always present of
relying too much on reasoning
by analogy.

thinking
concerning underlying
trends extending into the nineteen
sixties
lend
support to such a

The distinctive characteristic of

view, but there exist elements of
inherent resilience in the figures

ous

period

in

live is
strength
and

which

we

extraordinary
of corporate

earnings.

either

in 1946,
in a declin¬
ing trend, nor in 1937, when they
had to their credit only a rela¬
tively brief recovery from a de¬

when

was

not

earnings

so

were

of reported earnings. High taxes,
which will remain high even after

possible reduction, provide a
Expenditures for main¬
tenance and repairs are at a gen¬
erous
level.
Ample depreciation

a

cushion.

Continued

on

Pi
w

u
»—<

0$

&

a

s
J
o

2 0

-3

<
H
o

H
In

o
w

w

o

fi
z
ui
o
aJ

nocfi

UJ




1939

191+0

191*1

191+2

191+3

191*6

191*7 T 191*8

I.

It is con¬
be entering

<

1938'-

Figure

However, the use of a mechanical
device should not preclude the

H

1937

was

earning

measuring

for

o

fH

basis

they capitalized average earn¬
ings power of the past.
In the first section of this study,

as

FIGURE 2

>

to our

the turn of

between

that

is

own

ations

This

Analysis

which

within the bounds of their fluctu¬

stability

quar¬

projected at about 87 in terms

of

basis

position of the current quar¬
range
of
quality
stocks

the

should

1956, its probable low could

light

terly

the

under¬

decline

the

the

upper

1956, into
band of Figure 3.

the

In

reasonable

pected to penetrate, in

is shown on Figure 1.

such

materialize during the
be

of

the

historically pression that was unprecedentedly
valuation, destructive of corporate earning
stock prices are overvalued. Price- power. Even in 1929, the earnings
earnings
ratios
are
too
high. picture did not have the same
Moreover, they indicate that over- elements of strength as seem to be
speculation was present in high present now. At their 1929 peak,
grade stocks. Price and volume earnings were far below their pre¬
relations confirm that a specula¬ vious wartime high and has suf¬
tive climax in secondary stocks fered a deep five-year decline be¬
was reached early this year. And
tween 1916 and 1921. The period

limits of the fluctuations of stock

of

treatment.

its

it cannot be

in

on

repre¬

18% from

present

20%

have

prevailing more favor¬

This would

decline of about

a

expression

increases

dividend

recent

not

exceed the 1955

higher

projected

of

sent

chart.

also the annual

the

29

(2441)

The Commercial and Financial Chronicle

above

bands

The

...

191*9

19J?0

1QCLO

1

Q5/i

1Q55

1956

page

30

30

(2442)

Continued

The Commercial and Financial Chronicle

from

page

prices

29

If

extent

Outlook foi Stock Prices
allowances and

rapid amortization
give validity to the promise of
larger future earnings.
The conviction may gain ground
among investors that the present

ratios.

the 1954already
marks the beginning of such a
development. Should it continue
of

greater

than

their

recent

ratios

price-earnings

ratios.

But

of

if current earnings should also go

neces¬

sarily prevent a decline of stock
prices. Bear markets have some¬
times

developed out of positions

of undervaluation.

In order to lift

stocks to the higher level of

there should follow
vance

of

actual

an

value,

active ad¬

price-earnings




of

time peak.

It is in such

ronment that

quently

are

indicators

may
a

turn

all-

envi¬

an

maladjustments fre¬
born. The action of

certain

possibility

an

that

suggests

business

downward

in

the

activity
1956.

As

rule, the turning point in stock

The

same

phenomenon

observed—and
son—in

for

the

the relation

of

may

same

the

omy
raw

stimulates the prices of
materials.

But

if

the

ket

of

stock

whether the

mar¬

will

capitalize, without doubt
fear, current earnings on the
some basis as if they already rep¬

Nobody
the

mation
call

more

future.
best

elements

within

for

cur

infor¬

reach

would

stock

prices to be in a
declining trend in the earlier part
of next year, followed
by a re¬
versal of the downtrend in the
of

course

the

same

year

limits

of

such

a

decline and sub¬

place, the countervailing force of
such a development could cancel

preceding section of this re¬
They cannot constitute a
forecast, but they provide a rea¬

tors.

It would lift price-earnings

ratios, in terms of
age

to

current

our

stock

aver¬

approximately 15 times
earnings, in order to bring

stock prices in line with the
level of value. As the ratio

stands
in

an

at

12.5, this would

advance

of

almost

price-earnings ratios
all basis.

-

on

-

new
now

result

20%

an

over¬

An
active reappraisal of cor¬
porate earning power would seem
to be a logical expectation.
Thp
question, however, is whether it

is already now in the cards

or

the

port.

sonable basis for projection. Need¬
less to say, the projections would
have to be
altered, if it became
necessary to revise substantially
the
estimates
of
earnings
and

dividends

has

which

on

/.-ru'V

based,

in

v

rebound, as far as 1956
concerned, were discussed in

is

From the

they

Hi P= 3. 6711+ 6.5796 D +
0.5933

ysis

calls

cautious

point of view of prac¬
policy, my anal¬

for
and

projected

attitude

both

constructive.

The

an

decline

were

expressed

stock

average.

RANGE

Hi P

Mean P« 2.2988 +* 6.2972 D
+0.6059 Mean P
S
$4. 01
R2=-85.5%
0.1873 + 5.3097 D+0.6905 Lo
-

= -

Pp

S=$3.94

FIGURE 4

are

.

tical investment

.ftfTmH

Lo P

a

sequent

1955

.

and

resumption of the rise extending
well beyond 1956.
The probable

in

and

R*~

87. 5%

THRU

rebound

terms

of

a

Individual stocks

ES Estim.

-r

Yet

weaves

of

FIGURE 3

>/

The

likely.

which

the

slower

a

process.

knows the

pattern

together

through

gradual

seems

resented earning power itself. As
mentioned
before, if this took

out all the other unfavorable fac¬

rea¬

some

future

on

or

ratios

business

immediate

prices hinges

be

to commodity prices.
At the mo¬
ment, the reappearance of short¬
ages in certain sectors of the econ¬

reappraisal by investors of
earning power.
Thus,

a

corporate

a

goods and services is at

be that

achieved

more

latter

Still, the staunchest bastion of
the ratios' strength would

be

and

disappearance
of
inventory profits adds to the sig¬
nificance of reported earnings.

For a while, a decline in stock
prices would find a reflection in

lower

to

The

vance.

further extension of down, this would create an off¬
level of current earnings, under the rise of stock prices should be
setting tendency for ratios to rise
existing and realistically envis¬ witnessed in the coming year de¬ through the usual play of the
aged future conditions, is more spite the accumulation of signs compensating mechanism. It
representative of normal earning and portents of an important top. would operate as a brake on any
power than
an
average of past
Perhaps, however, before the fall of both the ratios and prices.
earnings, even though such an faith in the solidity of the new
Other
potential
supports
to
average does reflect a markedly
plateau of earning power becomes
price-earnings ratios could well
rising trend. By applying a capi¬ entrenched in the investors' minds manifest themselves. It now
looks
talization multiplier of 14.8 to the with
sufficient
firmness,
they as if the Federal
budget can be
present level of current earnings would need another test of resist¬ balanced in both the
present and
of $8.30 per share of our
index, ance of current earnings, such as the next fiscal years. Historically,
the resulting value would be lifted was witnessed in 1953.
periods of budgetary equilibrium,
to about 123, as against the 1955
That such an opportunity could and
especially of surpluses, have
high of 108 of our index. The be offered to them seems to be been
accompanied by high priceover-valuation would then vanish
well within the scope of the pres¬
earnings ratios. Sound money con¬
as a bad dream.
ent situation. National production
tributes to the quality of earnings.
This in itself would not

unabated,

the

contract
and
commodity
prices should weaken, price-earn¬
ings ratios would tend to ad¬

10% drop, their decline could also
contribute to a general economic
contraction.

It is possible that

rise

1955

should

precedes that in business.
should go down to an

stocks

Thursday, December 8, 1955

...

NOV.

15

Number 5433

132

Volume

.

.

.

(2443)

The Commercial and Financial Chronicle

participate in varying meas¬
in an average action.
And
some
of them will move against

will

Continued

from

31

3

page

ures

Above all, if a
reappraisal of general cor¬
porate earning power is in the
making, it will be the cumulative
result of reappraisal of the earn¬
ing power of individual corpora¬
tions. And the referendum of in¬
vestors will be conducted at daily

the

in
tne
market
cumulative action of
individual
capitalization
multi¬
pliers, expressed not in terms of
changing current earnings, but as
town

The

related

of represen¬

estimates

to

should pro¬
key for opening the
outlook for stock

tative earning power,
vide the best

of

vista

the

prices.
Finally,

if

an

intervening

cline should break the
of

*

in the sale of

de¬

(3) The
his

guidance could be

tional

"If

demand

rect

may

Like Phoenix, it can resur¬

cance.

ashes

of

out

before

much

done to
the
of de¬
mand and supply become useful.
They can indicate oversold con¬
ditions and temporary tops. They
can
be
helpful for investment

damage, if any, has been
the

trend.

price

But when

is lost, studies

momentum

timing.

From Curb to Street

Or 40 Yrs. for Hunter

in

ner

derived

deterioration of
have little signifi¬

was

any

statement:
a

dealer must act in

dealing

a

just and equitable man¬

with customers, the NASD and the
act justly and in an equitable

Commission must also
manner

in

dealing with him."

Two

dealers

in

oil royalties, called as

expert
50% mark-up is customary in

witnesses, testified that a
oil

facts

The

in

case

were

not

in

dispute, which,

makes it amazing that the Court and the Securi¬
Exchange Commission should have come to such
diametrically opposed conclusions.
Even more striking is this because the uncontradicted
testimony was that the SEC hsd on several occasions prior
to the sales lh question, itself examined the dealer's books
and records, which showed as to oil royalty sales, the same
uniform 50% mark-up with all other customers. No warn¬

being

so,

ties and

given by the Commission nor was any disciplinary
action taken by reason of such mark-ups. Clearly the
dealer had as much right to rely on this as an interpreta¬
tion, as upon similar action by the NASD. The Court's

ing

was

partisan
We

disposition,

savor

rather than that of justice.

come

now

to the

Hunter,

"Duke"

in the investment busi¬
ness.
He began his career in 1915
with the old New York Curb Ex¬

40

years

still an out¬

change when it was
side market.

Phila. Inv. Women Meet
Pa.—The In¬
of Phila¬

PHILADELPHIA,

vestment Women's Club

delphia will hold its
meeting of

cational
series

on

Thursday,

second edu¬
the 1955-56
Dec. 8,

1955

p.m., in the board room
Fidelity-Philadelphia Trust
Company.
The speaker will be
Mr. Leigh B. Hebb, Research As¬
sociation,
Bureau
of Municipal
Research, Pennsylvania Economy
League. Mr. Hebb's topic will be
"Philadelphia's Economic Revival

at

5:15

of the

and

the 1956 Budget."

Steiner, Rouse

Branch

Steiner, Rouse & Company an¬
the opening
of a new

nounce

branch

office in the lobby of the

Chanin Building, New

York City,

management of Leon
J. Weil and Edward N. Weintraub.
Also associated in the new office
under

will
the

the

H. Reeves, Jr., in
department and Walter

W. Thompson

in the statistical de¬

partment.

111.—At the lunch¬
meeting of the Investment

CHICAGO,

Analysts Society of Chicago to be
held Dec. 1 at 12:15 p.m. in the
Adams
Room
of
the
Midland
Hotel,

Joseph

President

poration
You-See"

we

hold

a

high

remembered'^ however, that the

services rendered by

the NASD, are purely
voluntary, on a part-time basis, that they can have no
extensive knowledge of the multifarious affairs of the
NASD and must to a large extent rely on the paid per¬
manent staff bf the Association for their information and
them, and by the committees to

of

S.

Wright,

Zenith

Radio

ViceCor¬

will speak on "Pay-astelevision and Zenith.




Two

things had

split, appeared less likely.
Nickel

stock has

Plate

However, neither
back into line

moved

the present level of

:£|j% policy" did not include instances of sales
of oil royalties. Hence the only sound procedure before
taking any position on permissible mark-ups would have
a

survey

on

sales of oil royalties only.

ijyfve disclosed the customs, trade practice, and
usage with respect to them and would have created a
proper foundation for the establishing of a rule or inter¬
pretation on the subject, which, as the Court pointed out,

This would

had

not

previously been done. As it stands we

interpretation, and still, this has not been
We

vehtiire the opinion that such

a

have an

earnings for some time to come.

from

and

Toledo

via

Detroit

its

controlled

Louis

St.

to

and

prove

the "5% yardstick" utterly

of oil

royalties.

survey

would

inapplicable to the sale

Something ought to be done promptly
of Governors concerning
the Court's decision

by the Board

their having been misled. Where

pointed the way so clearly, wThy the

dodge? Somewhere in the NASD set-up are
sible

paid permanent

to heel.

Peoria.

the respon¬

personnel who should be brought

also has

It

access

50% owned Detroit & Toledo Shore Line

the

subsidiary,

leased

and

Wheeling

&

to

and its

Lake

Erie,

extending from Zanesville, Ohio and Wheeling, W. Va. (actually
Terminal Junction) to Toledo, provides a heavy volume of soft

steel traffic. The Nickel Plate is
freight road, with 95% of its revenues coming

origination and iron and

almost

entirely

a

from this source.

addition to this advantage of not

being hampered by such

deficits as are the problem of so many of the roads in
the East particularly, this road also enjoys a high level of traffic
density, and this does not apply alone to the ton-mileage figure
which is naturally boosted because of the large proportion of coal,
steel and other heavy rather than bulky traffic. The road's revenue

passenger

density—dollars of revenue per road-mile—is also in the forefront.
This is one important factor in according to the road a very

(cost) ratio. There is an irreducible minimum
train-mile for moving freight regardless of how
heavily the train is loaded and also the road must be kept in safe
and usable condition whether the traffic is one light train or 20

favorable operating

of

cost

per

One pronounced effect of the high revenue

heavy trains per day.

density of the Nickel Plate is the correspondingly low ratio of
road maintenance cost.
While the equipment maintenance ratio

the ratio of its main¬

of the Nickel Plate is not far from average,

and structures is traditionally and perennially low.
Although the road has a long way to go in dieselization, its

tenance of way

below

well

—is

average,

as

months of this year
One of the

is also its wage ratio.

there is room to make

engaging features of the Nickel Plate is that
good situation even better.

a

point in appraising the Nickel Plate is that

Another notable

there

little

relatively

is

overstatement of

earnings due to tax

non-depreciable property or from
amortization. The Nickel Plate paid Federal

credits, either for retirement of
deferral due to fast

49%

the rate of 44%

at

amounts to only 58 cents per share or

this year

deferral credit
less than 8% of

1955 net per share.

estimated

Another important
is

this year—a pretty full rate.

is estimated that the road's tax

Furthermore, it

tion

in 1954 but has accrued this charge at

the first nine months of

for

the

point in sizing up the Nickel Plate situa¬

steady increase, particularly

in the last five or six

relative to the group of roads
serving the same general territory. The special progress of the
Nickel Plate itself affords considerable compensation for the lack

years,

in its proportion of revenues

growth in the territory, which instead

of notable

index of 117 based on the 1947-49
121 for the Union Pacific, 120
Southern Ry. and 116 for Atchison—all notable

100, as compared with

for Seaboard and

growth roads. Among roads

outstrips the

Pennsylvania and Erie with 99 each and the New
103.

York Central with

trend,

This
market

reasonably good yield, and a sound

a

ratio of

share earnings all make Nickel Plate an
stock for longer term investment at the current price

price to

attractive

a

in its own region it is rivalled only by
the same 117 index, but it far

Chesapeake & Ohio which has

the

of

is more on the

Nevertheless, the Nickel Plate makes a splendid

side.

cyclical

about 55 V2.

per

It is these factors,

rather than the probability of

that should be weighed in appraising the
merits of the stock. We can not think of any merger
help the Nickel Plate, although the party of the second

split-up or merger,

investment
that would

part might stand to
Plate are

sidered

as

being interested in a merger

traffic-wise with
Central
traffic

gain considerably. The finances of the Nickel
of roads generally con¬

incomparably stronger than those

and

and it is well situated

connections to New York via both

the Lackawanna.

relations by

the New York

The latter wishes to cement its

representation on the Nickel Plate board

in

18% of Nickel Plate
stock. The question of both the legality and the propriety of the
intention of the Lackawanna is to be taken under advisement by
the ICC. The Nickel Plate itself is one of the objecting parties
and informed the ICC on Dec. 6 that the shares acquired by the
Lackawanna Ry. had been placed in trust by the latter and that
the trustee had been authorized to use "its best judgment" in
voting the stock. The Nickel Plate claims this can only be "con¬
strued as transparent efforts by the Lackawanna" to evade the

view of its interest

done.

to pass and

the strength of

The Nickel Plate serves the highly industrialized Great Lakes
region. Its 1,657 miles of owned road, which is all main line,
extends from Buffalo to Chicago via Cleveland and Fort Wayne,

average as

ing to the

came
on

,

growth showing, with a revenue

announcing that the "5%' policy" now

been to conduct

a

its relative merits and the outlook for the continuation of at least

applies to
oil royalties we believe that the Board of Governors was
badly misguided. To suggest as the "NASD News" did,
that this interpretation was made necessary by the Court's
decision surpasses misguidance and approaches deception.
This interpretation was based on the old survey, and
Judge Frank distinctly pointed out that this survey lead¬
In

been

increase in the dividend to

an

guidance.

—

Chicago Analysts to Hear
eon

Board

regard. Many of them have an impeccable reputation and
are among the tops in the investment banking field.
As
men
of character they are above reproach. It must be

be George

bond

namely

taxes

action of the NASD Board of

Governors. For the members of this

Wellington

looked for and one,
level more in line with
earnings of $7.50 or more per share as estimated for this year,
was
at least a justifiable expectation.
The other, a rumor of a
sell-off.

appointed"

transportation ratio—35.2% for the first nine

which was reversed by the
Court, was the more unpardonable because it is manned
by a permanent staff of reputed experts who are supposed
to possess special qualifications in the securities field.
However, to those who know the long history of the
Commission's gunning for the oil royalty dealer, its
determination came as no surprise even though it had a
SEC

The

Wellington Hunter Associates,
Jersey City, N. J., is celebrating

York, Chicago & St. Louis stock—there is now only one
class- -has had a rather smart recovery from the recent "dis¬

In

the

Chicago & St. Louis

New

royalty sales.

logic is equally applicable to both..

Wellington Hunter

New York,

coal

(4)

a

progress,

issue, without

impropriety in these spreads.
Finding that the failure to give warning then constituted
an
interpretation of the Rules on which the dealer
reasonably relied, Judge Frank made this trenchant

ply relations in jthe stock market.
When an overpowering trend is
in

accounts

intimating there

studies oi demand and sup¬

from

District Business Conduct Committee
against the dealer had previously examined
with other customers which had the exact

very

percentage mark-up as the transactions at

momentum

By GERALD D. McKEEVER

qiliroyalties. As to oil royalties, Circuit Court

which decided

upward trend, some addi¬

the

»

Judge Frank,
o rendered the opinion, said, "Concededly,
they differ from stocks and bonds, since the former do not
have established)market prices"

meetings

place.

Railroad Securities

Evasion!

general trend.

basic

jurisdiction of the
for

"protection"

Lackawanna.

of 363,000 shares or almost

Commission and so appeals to the Commission
styled merger overtures of the

from what is

32

The Commercial and Financial Chronicle

(2444)

Continued

jrom first

supplement progress that we have
made in defense by building up
our over-all strength of arms. The
new approach of the Soviet Gov¬

page

Complexities in the

and down movements. It
could hardly be otherwise in a pe¬

and L\e mutual fund
group.
Wall Street, in its eftort
to
give the best service to its
customers, is spending a sum of
money in research to ferret out
facts and figures for their cus¬
tomers, which in the 1920-1929
decade would have appeared fan¬

riod such as has been covered since

tastic.

been

at

previous period.

any

In

iact, we can say with a good deal
of conviction that the market in
the broader terms is

composed of

a

number of markets within the gen¬
eral

the

up

of

end

World

II.

War

conditions but at the
whole

a

industries,

of

galaxy

new

time

same

partly founded upon the research

of

efforts

search

of

most

stocks

in

defense effort during

a

groups,

by

when,

period

past

measure¬

market

bull

that began

them.

see

decline

because

the

for¬

clouded

was

Again, with the advent
domestic political philosophy,

war.

of

a

as

evidenced in the 1952 elections,

from reform and in the di¬

away

definite action groups has become

rection

of

pronounced. This was
the so-called
police action Korean War and by
the further development of inten¬

stability and business
encouragement, we have been ex¬
periencing one of the sharpest ad¬

sive

York

more

oven

in turn influenced by

and

research

for

There

been

has

even

further

gards

the

in

that time

as

stock

best

designated

ket.

The quality market, in turn,

has

been

three

As

perhaps be
quality mar¬

could

averages

a

as

generated

at least
One, is

by

factors.

separate

allies

deferses

result,

a

Russia

war

continues, but I question that

has

for

mestic

has come the great
and increasing influence of insti¬
the

on

is

of

ence

Secondly,

funds

cold

now

the

picture

from

an

it appears at the

as

yet,

we

this

as

affairs

long period of time.

For the most part, certain
institutional funds have confined
their

investments

infallible

in

the

to

their

of

"Blue

selection

at

all

character¬

a

of this market that

istic

Perhaps, this general viewpoint

They have not been

times, but it has been

of a company which for¬
merly met with only moderate in¬
vestment reception are reflecting
improved earnings to a degree to

then
on

at

has

the

the

desired

people not in Wall

should

be

to

Street,

is

the

ment

the

of

underwriting

business houses

as

as

in

develop¬

and

brokerage

well

as

in

the

departments
as




of

pro¬

insurance

interim

period

Ministers

to

agreements

We

ings

second

which

implement

the

further

to

only

too

objectives of both

were

not

attained.

becomes

that the cold

over

30-year

a

period.

than half
of the cost estimated by Ameri¬
can
engineers for completion of
figure is rot

more

The

heads

ernment
on

the

of

the

at

are

war

of

the

the

Soviet

present time

salesmanship

a

well
meet¬

In

Gov¬

credit.

over

As to the present

tour,

to

so

fact,

is with
no

us

Soviet

doctrine

again,

restriction
Union
of

to

world

pansion.

that I would expect more
signs of inflation and an
accompanying
higher
level
of
speculation and business before I
think

the

edly learned
son

ment

are

public

vast

works,
equip¬

industrial

and

being promised

terms

on

will

Reserve

the

lor

first

both of the

In 1953, act¬

1953 and 1954.

years

ing

valuable les¬

very

a

moderation in

on

time

in

many

with an Administration
which assigned responsibilities for

years

credit
the

control

measures
fully to
Reserve, including
Treasury
cooperation,

complete

Federal

the

Reserve

went too far.
both

This

evidenced

was

by the actual

of credit in

obviously

unavailability

by
quick reversal which the

policy which

try and could be met bv

a combi¬
private industry and
government subsidy only by a

further

in

increase

beyond

which

amount

anv

of

outgo

the U. S. Treasury

from

money

the

seems

either
the present Administration or the
opposition party.

likely

be

to

This

approved

by

phase of the cold war
aspects which can at
the present moment be traced to

has

new

ment

invest¬

policies in this country. But,
the

of

one

which

factors

be entirely overlooked is

sibility of the
approach

only

went

in

the pos¬

of this new
that are not

success
areas

important

strategically

to

cash

importance to many Ameri¬

corporations. Perhaps the best

example

this

of

latter would be

the repercussions in the event

the
territory of
Saudi Arabia should, through the
blandishments of community lead¬
Middle

oil-rich

East

the

in

the

di¬

supplying more credit
be ultimately used at

could

than

far

too

sup¬

time.

Federal

The

Reserve

this

and

nations

Western

supply of world oil

Communism but only the methods

The

new

ap¬

Factors

On the domestic front

problems which must be met
extension of diplomatic,

commercial and financial

means

to

by

re¬

the Federal

early 1953.

Federal

.

Reserve

conse¬

quently knows very well the ef-

onC"thlne+SS °f thiis type of control
wh™
+1W0
categori*s has
of credit
where
the
expansion
been
most

persistent and yet, the most
that any Federal Reserve
official

has

said with
respect to these

ever

powers

that

is

accep?

they will

them and employ them to
the best
of their discretion if
Congress on
its own elects to
reinstate

them.

11

ft sa;r:e,

was Stressed
the Federal e'Reserve
did not
seek reinstatement of
these
that
that

quali¬

tative credit control measures.
There could hardly be
greater
reassurance in view of the
lesson?
™in 1953 than
lack of

for7WwReserve suggestions:
for legislation
regarding qualita¬

tive controls that

moderation

policy of credit

a

the

is

watchword
gardless of the name given to

nominal

available

at

The
As to

Level

of

business,

rolling along at

Business

we
a

all know it is-,

high level. But

the stock market looks
ahead

where is it going

months

six

Let

to

a

make

us

to be-

from

year

now.

determination

a

compose the Gross:

j

over-all

In

meas¬

presently have of the

the

order

stated,

the

three

"]aking up the Gross
Product are:

borrowers, although interest rates
have increased

penditures by individuals for
sumption goods and

Perhaps
cant

things pointing to
control
policy
altogether

credit

moderate
depending

a

Central

on

Banking operations of increasing
decreasing bank reserves, in¬
creasing or decreasing the dis¬

or

rate

the

purchase and
securities, is
the complete lack of aggressive¬

sale

of

and

government

which

ness

the

has evidenced
tive

Federal

Reserve

regards qualita¬

as

controls.

people

ex¬

con¬

associated

the

with

familiar with the

are

government

purchases; three in¬
vestment by business and individ¬
uals for capital
goods.
Personal
consumption expenditures, which
recently
annual

ran at $235

year due to
a

billion

on

an

basis, have been rising this-

advancing

wage

rates,,

longer work week, an increasing

number
rising
and a

of

employed people, I
amount of consumer debt,,

drop in the rate of savings..

Upward Wage Rates to Continue
t0 1956' 1
exPect 'he
upward wage rate parade to con-

The Margin Requirements

We

one

services; two

of the most signifi¬

one

almost

count

na¬

production

National

moderately within

of'

this matter by
looking at some of

legitimate

the past year.

The'

question is not where business is:
"°w-hu

relatively

all

for

costs

re¬

any

activities! 86 °f Federal Reserv*'

s

is

credit

qualitative

which

some un¬

the

This

sesses.

Reserve

Employment

will

also

be-

large, based on reports from vari¬
industries as to their plans for

justment of margin requirements

prior assumption that the present

requirements

of

term

conservative

tive

branch

Democratic

Congress and the

in the

would

Execu¬
for

continue

I do

not re¬

the purchase of stocks.

on

reached

having

stand

now

that

Margin
at 70%,

level

two successive advances

force

in

within

at

the

the end

with

from the

previous level of 50% which
of 1954.

year

surplus
a

so

It is

ahead.

now

appears

tast

With

the

labor-

largely absorbed, it
that, to keep up our

business pace, hours of work

may

slightly lengthen.

that

consumer

debt

I question-

will increase-

at last year s
tions now

was

of the Federal

power

the

pos¬

matter of ad¬

the

is

control

credit

Federal

certainty as to the outcome of the
1956 elections
has
replaced the

rate, due to restricbeing placed, but I also,

doubt that the rate of savings will

increase greatly.

ties favor some

And probabili¬

increased spending
how¬ Reserve to advance stock margins
First, the to 100% at which point the cost of power from possibly lower per¬
sonal taxes.
stock
market has
already been money or the general credit con¬
Altogether, it would seem that
subjected to the possibility of po¬ trols can be entirely relegated to
personal
consumption
expendi¬
litical change and it seldom dis¬ the
background of a matter of
tures
will
hold their own, and
counts news twice.
Second, the curtailing or completely stopping
probably
will
advance
during 1956.
Congress
will
probably
remain the use of credit in the stock mar¬
As
to
government
conservative.
spending, it
Third, the elector¬ ket.
It is obvicus that if stock

gard this as a major factor,
ever,

for three

reasons:

ate, itself, has grown tired of re¬
form and is in favor of normalcy.

market

Its views necessarily will

for

be

par¬

any

White House incumbent, as¬
suming President Eisenhower de¬
new

cides

not

next

year.

to

become

candidate

a

to

collateral

borrow
the

money

cannot

be

used

except
unimportant

against,

relatively

carrying of stocks purchased on
rights, then interest rates could
be at any level that vou care to
name,
% of 1% or 10%, and it
will

As

to

banking

credit,

have

we

resources

the

Federal
a

wind,

action

more

this

a

Cur¬

Reserve

leaning against
but

ample

finance

to

rently,

an

in

tion

is

only

the Domestic Front

on

normal increase of business.

by

Reserve

less

credit

ous

proach of the directors of world
bid fair to bring

imposed

we

stock market

Communism

now

straints

from

or

ure

have

no

effect

one

way

or

*

have been changed.

dates

more

National Product—the best

and, while the present policy
designated as "restrictive," still

go

resources

credit

both

general

1954

vital

behind the Iron Curtain.

of

and
the

The

matter

a

backed av/ay from this super-easy
credit policy toward the end of

from the control of the

pass

types

governed

,

As

great expansion of

that time

,

of

rection

cannot

this country but are of substantial

can

likewise

many

upon

both

The

effected.

Reserve

planted the harsh credit line, es¬
pecially in September of 1953,

of

J'

4U

U

harsh credit policy lasted no more
than about three months. The su¬
per-easy credit

nation

pired in March, 1952.

sections and

some

that

could not possibly be made
by private industry in this coun¬

regulations proved
up until they ex¬

Federal

federal

again,

Federal

put the credit brakes on very hard.
The Federal Reserve undoubt¬

the very

mills

by

summarize

me

vigorous

speak, of this same idea in India.
steel

Let

saying

Here

abundantly clear tially, if rot fully, reflected by

having back of it
whatever

peace

meeting.

know

now

the

now

new

investment

fessional buyers such

the

Foreign

the

lhat

it

departments in

in

this conference and that

supposed

expand

intensive

research

and

the

it

known

extended
This

another four years.

tial

invest¬

well

the Nile at

with credit upon this amount

time of the first Geneva Confer¬

take

as

re¬

no

cost of $300 million

in

foreign af¬

meeting by concrete and substan¬

quality.
not

estimated

group

of

general ideas discussed in the first

The third factor, which is prob¬

ably

the headwaters of

an

Eisenhower

was

invest¬
stock,

funds

on

Southerners

of

that point and carry the
considerably higher after it

reached

ment

the

of

institutional

the

stock

change

characteristic

ment

noninterference

between

shares

substantially

or

is
expected.
Another
project, however, is in a slightly
different class, that of the Soviet
offer to build the Hi-Dam project

fairs in domestic investment deci¬
sions reached its apogee at the
ence

the

once

little

which

on

do¬

uoon

representing anything static
which we can rely over a

upon

investment

foreign

investment
policy.
And
cannot be complacent with

market.

Chip" issues.

to

payment

ers,

present time regarding the influ¬

them.

tutional

The

a

all-out fight.

an

That

of these

capital

threat of

relating their
in any way to the threat
are

over-all basis

their

the

receded.

pull to pick out the best and, in

of

become

war

programs

rely upon the management
companies to take care of

has

hot

of

growth

finally built
point where

bellicose and

tendency of more conserva¬
tive investors playing for the long

the

a

re¬

as

less

investors

the

fact,

to

picture

America

arms.

have

three

or

the West, it seems, can now nego¬
tiate from a position of strength.

depicted by the vari¬

ous

aid

of this

Sales

East.

have

their ultimate effect

two

past

balance of

a

their

from

market

the

her

and

tendency of the market to break
into separate sections, since Sep¬
tember, 1953. The dynamic move¬
ment

of the New

years, the foreign political
has materially improved,

Sections

a

the history

Stock Exchange.

Over

generally.

The Market Has Separate

in

vances

products

new

broader markets

Middle

and

activity.

by

into several

up

I

as

eign political picture

has

break

to

Czechoslovakia

Egypt and the Arab League in the

the

on

building before trying to form
idea of what the building

stantial

in

carried on with
only moderate interruptions since
that date.
The tendency of the
market

influence

Despite rising busi¬
ness in 1940, 1941 and early 1942,
the stock market registered a sub¬

trend.

1949,

influences

ket

posed to be in a general downward
The

that play upon and

Politics, of recent years, has
been quite a factor in stock mar¬

ments, the stock market was sup¬

June,

lies in the many fac¬

moves

will be like.

the

during

even

its

in

some

the oil stocks, utilities and other

special

complexity

otherwise, I want to deter¬
mine the material that goes into

strong action in such groups

very
as

market's

Stated

the war pe¬
time we saw

riod and at the same

satellite

Board's control

serve

week, of

because of the Federal Re¬

in

ious

substantial decline
closely related to the

we saw a

war,

be watched from week to
course,

ap¬

factor that must

a

These

effective

credit

various

new approach
seen, at least
outline, is in the Soviet's offer
sell arms at cut prices through

declining market are politics,
credit, business and public confi¬
dence. Before committing myself the same
project, taking into ac¬
to any viewpoint as to the outlook count all of the factors which a
for stock prices over the months
capitalistic industrial nation must
ahead, I want to review these var¬ do under the circumstances.

Thus, in the abortive bear mar¬
that followed the end of the

moderate

the

of

This is

future operations.

Among the various factors that,
together, add up to an advancing

ket

continued

suggests

instalment debt and mortgage ex¬

or a

type of business in which they are
engaged.

very

this

their

determined
on
consumer
credit
and upon real estate loans
respec¬

tively.

in

to

re¬

precipitate and extreme, and this

checks.

evidence

concrete

most

Its

trade.

action, however, has been de¬

prices which could only again be
duplicated by this country through
further now unauthorized grants

Stock Market

corporations that are in the manu¬
facturing field, regardless of the

active level of

Chip" category and in those issues
are
showing promise of
substantial improvement in their

more

even

an

The Various Influences

our

the amount of down
payments and
the terms of repayments
could be

which

make

to

its behavior.

products in many lines of indus¬
try generated by the extensive re¬

Mortgage Credit), through which

of

The

an Act

course, to

liberate and moderate, rather than

plication

society.

or

disposal, through

Congress, Regulations W (Con¬
Credit) and X (Real Estate

sumer

strong forces tend¬
terminate the pres¬

somewhat concerned at the rate of

tors

the enormous
«teps forward in aviation and elec¬
tronics but along with this was
the intensive development of new

halt

of

Re¬

mate¬

broad

covered

motion

ing to

cent

Federal

actually taken place at

These,

course,

capitalistic

in

ent

the

Board's power,

serve

set

had at its
of

within

rial

been

conducted during the war in rela¬
of

of

goods, mostly capital goods, by a
system which does not necessarily
have to count profits and losses
in
a
sense that this is true in a

lies

It

selective market both in the "Blue

The result of this research

The

tion to the war, came about.

one

legitimate

curb on

a

expansion.

occasion, how¬
ever, I see no major threat in the
credit picture even though I am

has

The

not only had to make a
transition from war to peacetime
economy

is

tion based upon the production

companies

whole than they have

a

as

satellites

of economic and political penetra¬

Stock Maike) Onllook
market

its

and

ernment

inflation than

Thursday, Dece?ftb»r 8, 1955

...

is

rising business

in the nature of

has
a

been

check

on

another.

Use of credit under pres¬

ent margin
very

requirements has been

moderate

by

standards of totals

any

previous

percentages
related to stock market values or
gross

The

or

Reserve

eral Government outlays are
being
trimmed
wherever possible, but
the

big item here is expenditure
and this is expected

for

to

defense
remain

rent
state

at

levels.
and

various

approximately
On

the

municipal
public works

other

cur¬

hand,

outlays
are

for

rising.

Turning to the field of capital
we naturally look to
construction, durable equipment

investment,

purchases, and inventory build-up

national income.
Federal

also promises to hold
up and may
even advance
slightly. The Fed¬

formerly

or

decrease—the three items mak-

Volume

Number 5488

182

...

The Commercial and Financial Chronicle

ing up this category. As to construction, the F. W. Dodge Corp.
has recently estimated a 3% in-

ments will show a sizable total
above disbursements last year. As

crease-in awards for 1956 for the

a

states east of the Rockies, this de-

idend

the

on

increase

and

these

may

pay-

payments

the

show

arise

simply from

the fact

that they have been viewed from

small
something
too

matter of fact, if this:year's divsame

seems

measurement, that
larger lies behind. It
a

if

as

good

a

case

can

be

spite the downtrend in residen- percentage increase

made for the hypothesis that

tial

have been in one gigantic superbull market since April 1942. At
that date and with Dow Jones In-

cies
In

building; while Federal agenare looking for a 5% increase.

turn,

McGraw-Hill

have

as earnings
over 1954, the yield on the Dow
Jones Industrial Average will ap-

just

completed their survey of capital

spending plans by industry for
plant and equipment next year
and

they come up with the astonishing figure of a 13% rise. Lastly,
inventories

have

not

kept

pace

with the rise of the present year

proximate 4%% with the Average
at present levels. To be sure, this

we

dustrial Averages at about 96,
there began an upward movement
in stock prices at a time when the
military outlbok for the Allies was
probably at its lowest ebb. This
illustrates the point mentioned before that in the broad general

return is not as generous as prevailed near the beginning of the
bull market but it is still the larg-

est yield that investors can obtain
from assets with a comparable
degree of liquidity.

victory

of democratic capitalism
statism, then if
all of these things are taken into

stocks

account,

we

the

stock

market

..

whole, it would appear, assumtag no drastic credit curbs by the
Federal
Reserve
Board, that a
urther increase in the Gross Na-

any event, a very good six

months. is

ahead.

Washington

economists who have studied the
matter

arrive, incidentally, at a
5% increase in the Gross National
Product for 1956

over

i

ing to time market peaks.
investor*

shift nut

ran

nf

summing

hts'
e

phasis

the various high-

up

f "JJ lJ"!
fiSw? £

.

5 I

«£

u

nL

«

market's

grade bonds

Suction

crease.

the

On

basis

of the foregoing
which have cov¬
ered the political, credit and busi¬
ness
outlooks, it is hard to find

with but

C0mm0n

that

they

believe one can place em- mon
the following points:

on

of

news

for

slight

a

stocks

got

re.

President's

the

slight margin

very

from

be seen

Differential

its present confident attitude. Con¬

Another piece

a

ex-

rlturn from

4u

divs.

•

£

.30%

of intensive public speculation,
During the past decade, the number of shares of common stock
listed on the stock exchange has
increased by more than 50% due

about

320 points in
Actually, however,

stocks have advanced
points during this time,
indeed, a large segment of
few

very

300

over

and,

the stocks listed
Stock

the New York

on

Exchange

is

not

high

as

the averages.

as

Not only

has a large segment of
the market not increased as much
the averages

as

thp
trie

nf
ot

but

it must

into account that

be taken

HtiP
rise

in
in

sprnritw

also

part

a

nrinnc

hn«

security prices has
been due to inflation of the dollar.

un-

derlying this market is the lack

to

stock

splits,

all

you

plants tends to

reflect

mendous

additional

of

amount

into common stocks.
short, the increase in stock
money

learnings

be

to

tactor

considered

the

is

level of stock prices in
relation to earnings.
If equities
climbed to dangerous heights rel-

present

v""lk,tu

ative

"v-*b"w

to

earning

xv-x

such as
existed back at former major market

the

tops,

power

market

would

be

vulnerable to any slight recession
in business

or

old

the

old

Theory.

Dow

to any

slight lessen-

ing of investor confidence. Based
on projected
earnings for the 30
stocks comprising the Dow Jones
Industrial Average,
however,

were

sell-

construction

automobile
shan)1
.

given, something that had not

occurred before in the market his-

tow going back to 1921.

Here again, without being

a pro-

ponent for any method of evaluating bull and bear markets, it is
sufficient to say that all of these
false signals become easily explainable if they are looked at as

September 1953.

If

we

out of the market
,

,

,

«

ifi

^

and

ar_

it not be finished

„ti11

q

+n

h

look at the

but only subiect
«rhir.h

nni.r„Pfinno

to healthy coirections fiom which

it may carry on.

How could such a ^mturrt
explained? For one thing there
was introduced into the money
supply during World War II financing, an increase never before

approximated. The market usually
be witnessed. If this comes in the eventually discounts such a fact.
early half of the year and carries Probably it did not even start to

enough,
it

might

we

wasn't

question discount this factor until Septem-

-

_

Looking at the Longer-Range
After one has reviewed the

doing

this,

may

we

perhaps

figure

now

of

estimated

population

is

around

earn-

come

and

at

the

1929

peak

the

power in contrast with
conditions at previous major market tops.

Reflecting
trend

of

the

stronely

rising

earnings, dividends




are

j

..

..

on^y continents and oceans remain."
.It may be that some of the con-

fusion,

especially

as

regards the
1946-49,

so-called bear market of

social
bility

aonroximateTv

14-

, ,

hJ%°vryrf,

the desiraof full
employment, the
great strides in research and perconsciousness,

haps in the end, although this is
by no means clear, the eventual

months

represented electric revenues,

,

imi

0

j

-onferencc accomplished little to
w°rld Peac® and the fact
™at ti!S"

„on

r.'r aeyices> win con

r"

Jllgn.^le.'

shares were

outstanding shares

outstanding snares.

,

American Greetings

Offering Completed
The

sll%8esls no leiaxation onmeasures,
our part
''' Je®ard
f6,,w? mis'

on common

$5,520,000, or $2.30 per share on

~

~

Sent

ended

of which $38,169,000

$44,280,000

thp

. w

-

transit

a transit

be

1^5 mod!

1nfn

^evelon

a

Columbus and suburbs.

in

Earnings
.,

A subsidiary of

Rw Ihe. HS

]t coulcl develop into the most * >
proseprous year in the nation's then

public

shares

(par

of

$1)

offering

class

A

of 200,000
stock

common

of American Greetings
share, which- was

Corp. at $22 pev
w.*. «. v- r-

ma(je 011 q6C 0 by a group of unr
.

derwriters, headed by McDonald

wespixe ine imposition or

& Co^ Cleveland, Ohio, was over-

[,,n^c Jw

c.

-

aiutm 1 Ir L subscribed and the books closed.
i,ihf wI pC n"
The net proceeds from the fi~
' daub' ™ ®'ber
nancing will be used to pay for
^ shares desoite th™ the construction of warehouse farctiii
T

reCenf lise

ot

%%

in the

redis-

investors

Institutional

^

cilities in Cleveland and for gen-

eral corporate purposes,

The company has obtained com? !
mitmpntc fnv ari-iitinnai
lnn^-fprm.
stocks which are sound from a mitments ioi additional long-terratechnical and fundamental point borrowings aggregating $2,500,000
of yjew
Dividend disbursements v/hich can be used for the coaover the
next few weeks should struction program. A program for
create the heaviest reinvestment construction of a modern single
demand
in history in the next story warehouse has been develCOup]e of months
In any case oped, the first section of which is
there apPears to be a strong techexpected to cost approximately
nical support level in the 465 Dow $3,200,000
(including the cost of
Jones industrial Averages and in land
development) and will be
contjnue

to

^

geek

u

lhe

158-I6O

g00c}

cornmon

j

«

5" 1°*'7
completed in
1957.

Dow Jones Rails

(5) Tax

selling may be very
active this year despite the fact
that a
good many stocks show
s}larp gains.
Stocks having large
capital gains as well as capital
josses may be subiected to selling
because
of pair-offs
and iiivesturs
investors
ircai/sc ui
pait-uxis auu
will be very alert for bargin op-

with

iSSUPS

SAN
n

new

According to an announcement
Tnroc+

rj

K

„

on Dec. 5, Geraia K. Jooin mvesrmen*s' Ltd., St. Petersburg, I'la.,
has sold 75,141 shares of common
^
^
stock

(par

50

cents)

of Empire

Studios, Inc. at $2.50 per share.
The net proceeds

will be used to

reduce bank loans and current
liabilities in the amount of ap-

proximately $15,000; and for additional

ecutive office at 108 North

Kidder, Peabody

FRANCISCO,
T

Calif.—An-

„ml.

dp^ppJah^^ &

ro

,,

,'IL

XT k A

1

p

Orange

Orlando, Fla.— It is en¬
gaged in the production of motion
pictures for world-wide distribu¬
tion, and television films.
Ave.,

Ri^^uU^n""

der' Peabody & Co'' Russ Bui d g'
rv

Empire Studios Slock
Offering Completed

equipment, inventory expansion and additional working
capital, including the finishing of
three films under release contract
to Republic Pictures Corp.
developments
Empire Studios, Inc. is a Florida
corporation, with its principal ~
ex¬

(Special to The Financial Chronicle)

up

.

earning

similar to

cress

system

imnortant

overall business should

pansion of the money supply dur-

since 1946. The German poet jng
war period, the growth of
price-earnings 1«IXVJ
^i«,t-toiuiii6o
ratio was
wc*a
around r——
aivunu
philosopher Goethe
^
in reviewing
.Z
uupuiclliun now
I1UW ill
uiugxess and
auu an
population
in progress
all
21. Hence, stoeks are very rea- the events of his time said, "All of the other factors that have
sonably valued in the light of 'hat is trivial has sunk from sight, come in> such as mUch greater

ings

manv

which in some wav has been mvsteriouslv associated with major
wars.
Prior to
1946,» students
of
•• —
—
......M
population trends were forecasting a static population for this nortunities should there be excountry at about the year 1970. cessive pressure.
^
All such s+udents now foresee only
(6) A year ago the Dow Jones
a minor dip in the great popula- Averages stood
at 390 approxi¬
tion growth in the next five years mately whereas today they are
based upon the small generations up to 485. Obviously, the stock
thpf. were born during the early market cannot continue at this
1930 depression years. But about rate"through 1956. New leaders
1960, these same sources foresee wiu establish themselves as time
a resumption of a great population goes on and> jn manv cases, techgrowth upsurge to carry on in this PjCally and' fundamentally unatcountry at least to the end of this tractive issues may have to be
century without interruption. The weeded out to be replaced by new

growth

in

nnerates

newed decline should set in here
and carry to a point where it fully
corrected the 1953-55 advance,
—;
;
then we would have strengthened
the market's base for a rather sustained move.

dynamic

riehts

generahng

tneJ company operates

ber 1953. One other factor which
must have a great influence is the

a

a°new eVctric

lation of 913,000.

as

wind-up of
the two-or-more-year bull market.
On the other hand, if re-

In

to

the

counties in central and southern
Ohio having an estimated popu-

rise

may

auarter

linttpplaf to

?hUf

puzzling questions that have

times

estimated

and includes

The company's electric service
comprises portions of 22

to

lourtn quarter as

j

emohasizing

stocks sold at about 17 times

26

™al

1957 models are introduced

have at least part of the answer J«n million people by the year pending.
the dynamic action of the mar- 1965.
ket since 1953 and some of the
with these two factors, the exWith

about

at

fourth

th

pJy_L

new

earnings
(based on the previously mentioned average). At the 1937 top,

ing

likelv

is

production

in

In market as one entity dating from
ex- April 1942, we get the overall pic-

broad general bull and bear market movements and a tendency of
the market to break down into
stocks are selling at about 12 times groups within
the broad moveearnings which is a very conserva- ments which we have discussed as
tive figure in contrast to what dating from 1946, one is tempted
existed at past market peaks. For to back away and regard the marexample, in 1946, before the mar- ket at an even longer range basis,
ket turned down, stocks

»n r®s'"

SSSySlSKS

more

volume has been due ture of oceans and continents with
f. y. the greater activities of all trivial things sinking from
''«"a '"^e sfockhfs Teen whT^eln aAreseni ievekmav
result, considerable stock has been which even at present levels may

whether

lhe

under

9n

an

?

taken

is

1957

31

area

professional investors in the mar- ever we regard the market, there
ket in the past few years. These has been nothing approximating 11
including trustees, poured a tre- a bear market indication since

far

replacement costs.

Also

tn

to

erable increase in the activity of ket dating from April 1942. How-

kpow,

other words, the value of existing
industrial

areordim*

according

dividends,

the cost of a in strong hands.
newspaper has doubled
and the
Upon considering these various
price of a subway ride has tripled, factors, I can't bring it upon mySimilarly, the brick, mortar and self to urge major liquidation of
industrial equipment underlying share holdings.
Indeed, at some
the stocks of our leading corpora- point in 1956 I would assume that
tions have increased in value. In considerable market strength will
As

given

given

etc. being much too small to have any
the Moreover, there has been consid- significance in a super-bull mar-

30 industrial stocks which has advanced

various

signals for bull and bear markets

-j

of evidence sug-

a whole is not as high as is
suggested by the present level of most

last six years.

seDtemher 1964

building

these signals was that it was invariably reversed almost as soon

on

gesting the strength which is

is that of the Dow Jones

,

market

tributing to this conclusion is also
the facf that the stock market as

average

'boagb f?}f.

negative

1955

u

"tionmaTtakfpla^eoTeraU WadfacentVreffo*

and at one time generally fol- aua empnasizing many important
fowed method of evaluating the changets and improvements over

.

,

$58 000 000

unit at

.61%

figure based

Dec

to

cost

1937

anticipated

popular stock averages,
Perhaps the most widely quoted

? plnnntP Aam^h

were

any

the

nrocess

^JLnrS?SB{5g,

were

pac/

stocks)

,

£" Ke'^todWOrtTSS

°T1

.P4%

Present

.„

§Z
ofVnk
Cns
which wen"
incurred
contraction
incurred for
xor W
its construct
on. p

dollS'

lew weeks by many billion dollar

104ft
1946

yields

at

Proceeds from the sale of these

sudden
,

ar\d up to September 1953, various

Yield

(bond

and

lllnfss as applied to investment shares will be used by tne aim-

ket may have been simply a correction of the fmst leg of the marka'da'ln$ back
APnl !942:, 1
might be mentioned in passing that

Bond-stock

cceded the

Co.

Electric

Possibility that the President unit at a new electric general g
™fbt be willing and able to run station near ConesviUe, Ohio.

the following tabulation:

1929

Columbus

of

Ohio

$31.75 per share,

'ember 1946 there occurred the
first decline which has been somewhat unsatisfactorily explained as

return

as may

shares

Southern

year_end dividend and probable cost $d»,uuu,uuu ana inciuaes tne

low

so

fhe

exceeded

pronounced
change in public sentiment from

of

pfintrarv

nnn

6 of a new issue of 250,000 com-

In Sen-

corrections in the

from high-grade bonds by only a

considerations,

grounds

When

mmmnn

in inrame, that condition

from

1955. From

from price in¬

to 2%

thp

at the close of the market on Dec^
a

p

i

«

(1) The damage resulting from

vanced from April 1942 to June
1946 with only two very moderate

stoeks into virtuaUy riskless high-

3% to 4% rise is expected in phys¬
ical output of goods and services,
another 1%

pmotions

nn

rpi__

i

important factor in attempt-

very
as

a

but, in

rt„„j.

Dillon, Read & Co: Inc. and The
Ohio Company headed an invest¬
ment banking group
which re¬
leased an offering for public sale

q,
Conclusions

bond-Btockyiclddffferentlal El ^eSeSf'%

Product in 1956

Taking the business picture
..

uirtVi-ct

as

it is today,
Tri
In

'

Eloc. Stock Moral

begin to have

may

for

reasons

is

tt._i

Gross National

Colnlns t So. Ohio

totalitarian

over

teSd-w ^ ** .lndeed-th-e
from common
movement,
the all
superb
time
to ^de™e,, tSLif
still yieId
considerably
above purchase
is when
reasons
based
A Higher

33

(2445)

c;

t

uercLi Vi. oimpson
Derek G. Simpson, a director of

With

Reynolds 8c Co.

(Special to The Financial

Chronicle)

Calif.—John
is now with ,Rey-

SAN FRANCISCO,

Strangman

Midland Securities Corp. Limited, L.
Tv/rnnt«*nmf>rv-St_
Toronto, passed away on Nov. 29. nolds & Co., ^0 Montgomery

34

The Commercial and Financial Chronicle

(2446)

Chase Manhattan Bank Announces Two-Square
Block Office

11

John J. McCloy,

hattan

Chairman of the Board of the Chase Man¬

Bank, New York, tells shareholders, building would
probably be between 50 and 60 stories high.
an-

nounced at the annual meeting of
stockholders

Dec. 6 that it has

on

tentative plans for a modern head

office

ing

build-

surround-

ed

by

open

plaza

on

two-

block
the

ex-

an

pansive

a

square

in

area

heart

the

of

financial

district.

Though
have

plans
yet

not

tallized,
the
building
probably
crys

would
J.

McCloy
u.

The

be

tween

be¬

50

and

objective

McCloy, Chairman of the
Board, told stockholders, "is not
only to

provide ample space for
bank's present needs and fu¬

ture

fit

The

plan envisages substantial
increase in the width of the four
surrounding streets on land to be
donated to the city by the bank.
Cedar

Street

would

vehicles from

closed

be

to

William

to

Nassau

west but north and south

as

well.

A vital feature of the plan from
the bank's point of view is that it

consolidate

tions under

one

all

its

both

ployees and customers.
Manhattan
Manhattan

Spring,

the

building

and

for

bank's

em-

various

office

departments, with
of nearly 8,700 men and
have been using space in
of nine buildings — six

a

lact

last
head
staff

women,
a

total

in

the

expansion, but also to bene¬

downtown New York

and

the

city as' a whole."
The
annual
meeting of stockholders, the first

which includes the present

c

head

buildings and real estate holdings

materials

in

stored

the financial district

will

longer

the

by

needed

no

Consideration is being giv¬

bank.

the

to

en

be

which

which

creation

would

of

hold

a

company

this

property

and obtain financing from outside

If

the

and

pany

this

done,

were

investment

bank's

in

this

bank's

the

com¬

branch

of¬

fices would approximate the book

of

value

the

banking

existing

premises.
Included

in

the

^neral

J:,®

JOf

n

i

„

building
and
plaza,
a
spokesman for Skidmore, Owings
and Merrill stated, "In
the '20s,
it is probable that the bank would

office

the present Chase Manhattan head

building at 18 Pine Street.
In

announcing the plan Mr. Mc¬
Cloy emphasized that a number
important steps, including dis¬

of

posal

of

certain

existing

office

building

corner

of Pine and Nassau Streets

the

at

northeast

the site could

of

space
years

proper-

ties of the bank and approvals on
part of city officials, as well
as the bank's
board of

the bank's

meet

requirements
for
many
in the future, while also
providing a substantial amount of

would be sold to that bank for its

head office.
With the exception of two small

rentable

office

space.

Parcels, Chase Manhattan at pres"The open plaza plan will afent owns all of the land on the
directors, Proposed building and plaza site, ford space, light and air not only
be necessary before con- The
Liberty-William-Cedar-Nas- for the bank building but for the
could be signed and con- sau Street block, site of the old other buildings around the plaza,

the

would
tracts

Mutual

struction started.
"Our

plans," Mr

McCloy said
imagi¬

"have benefited from the

Life

property,

was

ac-

will

It

also

provide

quired
}as[ year- These buildings, change
from the
most of which have not been
like streets of

a

welcome

narrow, canyon-

the

oc-

financial

dis-

that

the

project

Jack.

We

over-all

fits

have

found

concept

of

admirably with
plans, and they have
willingness to as¬
sist us in solving some of the dif¬
ficult legal and physical problems
their

own

indicated

x.

;

'

''

/

y;

,

/;

'

•'

y

•'

"

our

&

.

i

til

of

that

tors

tions

our

a

AL

Chase

more, Owings and
if plans

They

must

sponsibilities, too.

ation of what THEY MUST DO in
order for you to

The proposed

new

of

the

cover

area,

and

goals.

ing proposed.




client

a

longer did

no

This investor had

his securities there
a

most

this security

investment.

suggested

income
he

stock

I

a

thought

customer's

'ideas

which

stock

income

to

he

That

switch

the salesman of

did

the atti¬

the

That
of

this

they should keep records
received,
interest

responsibility of bringing

as

you

busy taking care
accounts as you can

are

many

to de¬

they finally drifted

ments that arise from time to time.

each

before this switch was made, rela¬

between them began

teriorate until

substantial

service, and that you want to give
of your customers the most
assistance possible, but they too
must help you to do this by keep¬
ing you informed of any particu¬
lar details concerning their invest¬

re¬

due to its very limited
supply.
Although both were at
fault in not talking things over
placed

tions

a

it to your attention.

the income stock that

closely held could not be

show

occasionally

take the

were in the dark
situation. The
switch did not turn out too well,

was

can

collected, notices and reports to
stockholders, and if something is
not clear to them that they should

selling. Both

on

of the

most

dividends

of

he held toward the stock he

and later

that

may

That

con¬

he

and

limita¬

some invest¬
depreciate in value
happens it is a
normal
thing
and
steps
then
should be taken to reappraise and
correct it if possible.

The customer gave his
the

found

when

and

holding

was

own

in value, in most
sound growth takes time.

ments

his

concerning
was

the 'switch

have

cases

opportunity for cap¬
Withdut a discussion of

the

your

possibilities

appreciation

an

for

tell

give

the

and

vestments

as a per¬

something

might

know

Although there are times when,
within a few months, certain in¬

He

switch from

a

on this basis, you will
customer's needs and

your

people
are not only reasonable
but they
will appreciate it if you tell them
candidly that:

One day the

into

us

securities he is acquiring.

corpo¬

income.

Let

And that

it should be. If you
in establishing a

way

will

tions

repre¬

closely held

generous

successful team

successful

he

you

was

the

relationship

satisfac¬

sound common stock

together.

work

can

capable

a

that

know

everyone

a

as

a

are

firm.

if

well

as

broker to make

is

the

salesman

a

understand each other."

business

them

heard

once

to his client, "It takes a good

customer

cus¬

of

investment

avoid

not

regarding

apart.

New Winckler Officers

Don't Assume Anything

service

buildings to provide the plaza

sound

a

things happen to

why

would be several floors of

of

he

by

another

tude

30%

which permits the type of build¬

inter¬

Just the other day I

informed

reason

not

there

other space involved in the
razing

for

I

ment.

Over

second

relationship that will help
you to better understand

consent

Chase

vaults,
facilities, and office space
extending under the plaza area.
This feature, and the
uniformity
of space through all floors of the
building, compensate for loss of

It

and

basis

the

summated.

Nassau

approximately

ground

Talk

of

the

Manhattan Bank Building, a rec¬
tangular free-standing structure,
would

you
have a transaction
the best procedure as to
instructions, and what
should be expected of an invest¬

clarify

transfer

ments.

first

attend to all

his customers.
understand their re¬
for

When

help them to be

successful with their invest¬

more

ital gain.

eventuate, occupy almost
all of the two blocks bounded
by
Streets.

the

I have found that custom¬
appreciate a clear-cut explan¬

customer

Merrill, would,

Liberty, William, Pine and

account executive to

ers

that

Bank

company

years

this

project, which is being designed
by the architectural firm of Skid-

the

and

things

Over

should
be
Later on,

them, they kept
again re¬
sumed dividends but they didn't
know
it
and
they
were
hard
pressed to collect. It is almost im¬
possible for a busy salesman or
them

such

salesman

we

they

of I selling

instead

take

must

that

placed in "street" name.

doing business
public, who in most

INVESTORS, you
for granted.

manent

provident plan."
Manhattan

assume

paying stocks and have in¬

structed

NOT PROFESSION¬

are

looked upon

base,

stockholders,

dend

obliga¬
as inves¬

nothing

was

The

they must
the lay

instances

a

viewpoint of bank operations it is
an
eminently practical plan, and

believe, it is

trip, or were plain negligent.
Others have purchased non-divi¬

inves¬

tors. When you are

with

worthless, just be¬
too busy, were on

were

a

ration which had been paying him

would give more usable space and
lower construction costs. From the

from that of

As

certain of the

understand

among

bank's

a

individual

more

they

cause

generally becoming inter¬
ested in securities, the responsibil¬
ity rests upon the retail securities
salesman to help his clients
to

very

By contrast, the pro¬
posed building, made possible by
as

avoided.

become

and

a

are

sentative of

building.

area

client and

a

tory account for many years, and

cient space, much more
costly con¬
struction, and no room for expan¬
sion
without
going to another

larger

down¬

town."

misunderstandings

could. be

and

more

but

building on a single block, with
setbacks, would result in less effi¬

a

desirable housing projects

including housing

between

salesman

These

property from a financial stand¬
point.
To build
a
conventional

using

the

of

occur

can?

the

re¬

rBe Initiated by the Salesman
Most

with

project.

use

interest

Sounder Customer Relations Must

was

"After
prolonged
study
and
careful analysis we are convinced
that this plan represents an ad¬

vantageous

will endeavor to

and

sponsible builders in undertaking

By JOHN DUTTON

both

•

their

involved in

redevelopment
city, will give their whole¬
cooperation.
We
are
keenly interested in this program

Securities Salesman's Corner

tomer

,

:

9 /IMSm.

-

com¬

inter¬

hearted

car and truck load¬
facilities approached by
a
from Liberty Street.
.Commenting on the city's plan
for redevelopment of the lower

your

;

others

as

of this

views with prospective clients can

'

ISi.

well

as

ested in the future

ing

form

our

in

all members of the financial

munity,

underground

Your

Proposed Chase Manhattan Project

Commissioner Moses and Borough

President

learning
-

City Government are to be
complimented
for
con¬
ceiving a plan to which I believe

say

Dur¬

area.

man-*

greatly

ramp

Let's

ing the initial stages of the project
we have consulted
Mayor Wagner,

the

of gratification
of the city's for-"

in the

many

ities for members of the staff, and

native attitude of New York
City
authorities toward the redevelop¬
ment of the downtown

and

of the

plans

not

stockholders

share

looking program for the
redevelopment of this vitally im¬
of New York. I be¬
lieve the Mayor and his associates

building
of its
undecided.
Among features, that will prob¬
ably be included are an audito¬
rium, dining and recreation facil¬

plaza

was

31,

unloaded

be

can

complete,- and
features
are
as
yet

of
bounded by Liberty,
Cedar and Pearl Streets,
on
property now owned by the
bank. Officials of important corthe

held

head

will

portant part

the site."

on

Detailed

are

Water,

intensively as permitted by the
city zoning ordinance. However,
our
study showed that a single
building on the northern portion

bank's

the

sure

LrLi
parking

nnn

1,000-Car

3

ing with the Chemical Corn Ex¬
change Bank is finally concluded,

an

am

bank

garage on a site one block east

since Chase and Bank of Manhat¬
tan merged
last March

If

"I

the

upon

con¬

construction since

Manhattan area,

^
StrUCtion

area

hattan

be realized.

of

ex¬

an

gestion during

the sale of

Place.

building, substantial sav¬
ings in operating expenses should

said:

simplicity of the
produces

will be obtained from

have developed the entire area as

the

extreme

ward

agreement which is pend¬

in

"The

building design

construction and lessen street

Commenting on the architectural planning for the Chase Man-

single

as announced by Mayor
Wagner at City Hall, Mr. McCloy

agement's feeling

office, and three on Wall
Street, Broad Street and Exchange
With all departments in a

projects,

ceptionally high proportion of us¬
able
space.
It also will speed

Since the

mprdor

indicate
the

constructing

Thursday, December 8, 1955

..

plaza will be ap¬
proximately $75 million, against
which a very substantial amount

opera-

merger

trict for everyone who works and
does business there.

estimates
of

roof, with greatly

improved facilities
Chase

cost

sources.

Streets, but pedestrians could traverse the plaza not only east and

would

the

now

are

60 stories high. cedar^
porations have expressed interest
of the bank,"
p J*1*1®1the development of this plan.

+.

John J.

the

that

*

The Chase Manhattan Bank

John

Preliminary

Project In Financial District

I

cupied for five years,
being demolished.

.

Even

investors who have

those

been

"Aerial

project

view"

from

east.

of

block

In

model

of

proposed

foreground

is

planned

Chase

Manhattan

1,000-car

parking

Pyramid-topped building to left of plaza is 40 Wall Street;
massive wedge-shaped building to right is Federal
Reserve Bank.
Tall building between garage and plaza is Cities
Service Building.
Block model of Chase Manhattan
garage.

building indicates approximate

size and location only, since plans and exterior treatment

undecided.

are

still

purchasing
securities
for
can be negligent and
in handling the details
connected with managing a port¬

many

years

careless

folio

of securities.

There

are

nu¬

.

and

have

of people who should

known

allowed

better

that

have

valuable rights to expire

Midwest

—

Stock

Exchanges:

Harry L. Schafer, President; Louis
J.

merous cases

.

The follow¬
ing new officers have been elected
by F. J. Winckler Co., Penobscot
Building, members of the Detroit
DETROIT, Mich.

Luchtman, Vice-President.
A.
Bayer
continues as

Walter

Secretary and William H. Gordon
as

Treasurer.

Volume

Number 5488

182

Continued,

from first

The Commercial

..

.

ar^Einancial Chronicle

page

National Economic Picture
'

.

of

.

_

..

.

T,

j

,.

•

individual. If and
actually accom-

ungle

a

I*

*

...

the dollar expenditures on new
homes and improvements for the
third Quarter of this year were
about $2 billion over the $14 billion level for the comparable pe-

35

(2447)

enough to allow for a continued
growth in the months immediately ahead?"
Answers to this question are not
simple but an important deter-

the

answer is quite clear.
It is a
resounding "no."
Many of our analysts point to
the
relatively low number of
families that are currently being

mining factor is the level of per- formed
sonal income that

we

will be able

the

as

why

reason

nological changes," the rate of curconsumption, and the psychological outlook of the business-

rent

Technological changes are
coming very fast and since most
firms "have"their eyes on future

man.

we

should

employment, the
worked, and the

anticipate a declining markets
investments in new
housing market. Such analysts are equipment are aimed at more than
looking at only part of the picture, the mere replacement of present
The replacement of houses lost by capacity.
Also, the shortage of
fire, flood, wind, earthquake and workers and the increase in wage

^.e^c f,
?■ f: There were ups and wages and salaries paid, it might
National Economic Picture, I will downs in the value of building be worthwhile to examine the'

other disasters as well as the re- rates are forcing firms to turn to
placement of substandard homes automation and other technolog-

when this is

ever

plished, it will be the end of the
greatest

system that has

economic

been created by man.

ever

•kt

to

Since total personal

maintain.

income is largely dependent upon

the

of

amount

number of hours

T

attempt to

These

three questions,

answer

(1) What has occurred

are:

S hilnJh-e past yea,r t0 Tse tht

e7el °t if ome. and employment
hfhejt levels in our
pe the facl°rs. re"
sponsible for the current business

vuJ^C?

m

picture strong enough to allow for
a continued growth in the months

immediately ahead? and (3) What
;is the outlook for business activi.
_

y

..

^

.

i„

„

,

the next 10 t0 15

over

years-

The National Accounting Data
rr.,

,

tion,
the

What

past

of

,.

reaeh

to

year

and

the

in

levels

our

the

past
of

third

the

In

year.

1954

(July through
September), Gross National Product was at the rate of $358 billion,
approximately 2V2% below where
it

in

the

of
1953. A year ago, most forecasters
myself included
were
prewas

quarter

same

effect upon the economy
<

■

u

Unc,

**

a®

National

Product

iidiiuuai

of

1955

increase

by
uy

nuuua

the
me

middle
xniuuie

instead
of the $34 billion
that
actually occurred.

A review of

data enables

our

us

to be rather precise in accounting

for the 10%

increase that has

curred.

The

country

have

businessmen

moved

of

our

with

ahead

confidence, and this confidence
been largely responsible for
rapid

in
Increased

upsurge

production.

total

our

expendi¬

tures by businesses have account¬

for

ed

nearly 50%

total spending.

of the rise in

We have added to

capacity to produce by pur¬
chasing large auantities of elec¬
our

tronic

and

other

durable

pro¬

ducers'

equipment and by con¬
structing new commercial and inplants. Expenditures for
these purposes are over 8% above
last year's. These are highly sigdustrial

nificant

dollars because

they put
and, thus,
have a multiplying effect
upon
total spending. They replace obsolete equipment and add to our
capital formation and increase our
additional

to work

men
.

,

capacity

to

services

that

,

.

produce

and

goods

raise

living

our

standards.

iujg

and

and

equipment,

year ago.

In fact, during the third

quarter of 1954, inventories

being pulled

dov/n

at

an

were

annual

rently,
lated at

$3

they
an

are

Of course,

0£

unemployment

we

We do not have time to explore

many reasons why we can
expect a housing market as large

had

,TOQV,

last year.

the

share^pf
our
and tp save
anw

oavc

1 x-\

^an^in6

_

of hours they
' are work-

.

during
"U1.V'S

ing the

last

in

investments

Ser)tem-

%
ber,

The

has

re-

■

,

vxri+u

40 8 hours this year
'

*

—

suited in higher

incomes and

since

and,

ployment

v°?niJer]'u„ ai„,

em-

saved
saved

we

income! the"demand

ofrour

for
consumer goods and services increased
at
a
phenomenal rate.
During the past year, consumer
spending has increased more than
$1 billion each month. It has risen
from a rate of $237 billion during
the third quarter of 1954 to more
than $256 billion during the same

/Ninnr\v»TrinA

o

I believe the

„

Jnd

*th

will

f

f.

gee

^

a

mains

a

shortage

of

workers.

Thus, income from wages will rise
because
hours

the

of

worked

™

increase
and

also

in

the

because

trol

cannot

to

government spending
respectable level, we

trace the upsurge

in busi-

activity during the past year

Federal
spending actually de-

this particular source.

Government
a

little

more

than

$3

bil-

lion

expenditures so the net effect of
spending on
the

government
course

been

of business activity has
slightly depressing rather

Vrnictorirra

than

w\

/Ani

#-» r-\

v-x

con-

inflation,

sales

Look for

Private Enterprise Responsible for
Current Business Activity

the

can

dustry did produce and push
the

market

many

1955 than most of

sible

a

in

believed pos-

However, the
appeared
significant
changes

that

few

reveal

us

on

cars

ago.

year

models

new

more

have

great

enough

maintain

to

War

spend.

Prices

scare

which

stimulated

in-

ployment.

increase in government spending,

Another
has been

past

year

area

so

is

construction.
which

of investment that

active over the
that of residential

very

This is the

mortgage

familiar and the
are

not

area

bankers
one

with

are

so

in which you

particularly concerned. I do
know exactly how many new

homes have been constructed durmg

the past

year

but the Depart-

ment of Commerce estimates that




The

peoples' willingness to spend
has been

their income

encourag-

ing to business and, this, in turn,
has been an incentive for business
to increase its

Whether
levels
swers

the

at

will

capacity to produce,

not

or

sustained

demand

the

can

"current

depend-

upon

be

high

the

an-

to the second

factors

current

question: "Are
responsible for the

business,

jftcture

_

_

their

pect to spend oh plant and equipin 1956, the evidence from
-

-

they plan to do in '56. Ford, for
example, claims it will spend onehalf billion dollars next year on
various plants and equipment. All

told, I look for such expenditures
to
rise steadily up through
at

in

nf*owr S3'billion

ventory plans made by
ventory
plans made by "Fortune"

ajt-

easier

SknTnun
aS
7,500,000 car
would

still

sales

leaya

of

with

uS

S1Z~

consumer

durables will reflect the continued
m incomes.

predicted
take

to

The higher inwill encourage

on

still

another

consumer

non-du-

rabies and services have climbed

raPidly

during

and

very

jnto

are

as

The demand

1956.

gasoline,
wen

the current year
apt t0 continue well
for

more

expensive foods,
greater quantities be-

more
as

strong

it

stocks,

is

for a few additional
but it is difficult to.be-

ticipated

such

lieve

condition

a

be

will

maintained for all of 1956.

A de-

cline in spending to build up inyentories would just about offset
additional expenditures that
might be expected by business to
expand its plant and equipment,
any

There
.

to

seems

;

,

.

cr

be

hprltiled

no

signifi-

in

eovern-

months just

ment spending in the

An increase in defense ex-

ahead.

with
the
Russians
sweetly as they are at
present would be difficult while
any increase in other Federal expenditures is not likely to occur
jn an election year. I expect that

Penditures

smiling

as

increases^ in spending will cause of our growing population, state and local expenditures will
added confidence to the busi- additional tourist facilities, more follow the pattern they have since

nessman.

rable

and

thdr

reduce

t

d

is

and household

inventory

efficiently high to discourage any
fuj^gj. rapid increase. A further
increase jn stocks might be an-

rjonttliy
payment and the result mJths
likely to be additional pur-

The sales of

-

the

in 1953 when firms last start-

was

change

-

sales ratio is not as high as it

to

able volume of sales.

comes

faster than inven-

Although

a
~

Tn-

A survev of

magazine indicates that sales next

W% ,t0
eht5mwiu
15%
ortrise
year

this

industrial

We simply do not have large numbers of workers looking for jobs,
The important point is that income is apt to continue to increase
and, as long as people feel secure
in their jobs, we can expect further increases in spending. Fur-

noticed how
been exceeding

already

has

cllmbfag
and the
dealers
asking
still
credit.
A decline

for

...

Christmas sales lie jiist ahead,
and we can expect an extremely
strong demand through the end of
prices.
In my own mind, it - is the year. After that, the sale of
doubtful, however, that total in- consumer durables is likely to fall
come will increase at a rate quite
to around the level they were
as fast as it has in the recent past,
during the first quarter of 1955.
had

have

-yje

production

^arfxve.ry consumption at the annual rate

.

,

He

will

have

further

clothes, more public utility servjCes, and more liquor will all be

conclude from what has

spending in 1950, this is the first
year since 1947 that we have excrease in production and,
thps, is perienced an upturn in Gross Naalso bolstering to income and emuonal Product without a sizable
an

"n

1

not published

apt to see automobile inventories

prices, will eventually be reflected
in slightly higher consumer

incentives for increasing his pro-

The accumulation

inventories necessitates

'

A

ment

an

equivalent high level of sales. The

..

of

*

.

Point to still higher levels than
The automobile is another im- have been enjoyed in recent
Portant area of consumer spend- months. Some of our individual
inS that will call for close watch- large concerns have already made
ing in 1956. The autompbile in- announcements concerning what

,

sumers

n

t

mission have

tiVe-

famihes

next few months, wages

already

have

give

.

We

i

the Securities and Exchange Corn-

the McGraw-Hill studies seems to

us

The demand for other

g

Slightly Higher

Consumer

ther

than bolstering,

have

to fur¬

to achieve our objec-

for

way

ductive capacity which, in turn, the consequence of a total higher
also increased but the significant
been said that it has been the ™lL} have .agaln a multlP!ying ef" personal income being distributed
pomt for us to keep in mind is
private sector of our economy that iect upon income.
to more people.
that
when
inventories
increase,
bas been primarily responsible for
H incomes continue to climb m
Qn balance, consumers will be
businesses
are
producing
more
the major upturn in business ac- the months'just thead, what will spending a little more on their
than the.v are selling and,
thus, tivity that has occurred over the be the effect upon broad £peas of own needs during the months
°
Past year. Except for the Korean spending? We mighty look at du- ahead than they did in the comincome
stream faster than
con,

These conditions add up

Fall Report of what businesses ex-

increased the most but
hoth non-durables and services are apt to continue to rise and chases of furniture
are close behind.
this, along with the increases we appliances.

ness

optimistic long-run

outlook.

but
I
sincerely
question that holding back on
housing is the most appropriate

ua

to be b dd

emP^°yers are

against one another for the rela¬
tively scarce supply of workers.

In

a

A

need to

we

few

con-

tinued increase in the number of
hours worked because there re¬

this year. Spending on
?Hra ^ Soods, primarily automo-

Although

4-/->

r/N

disservice to the American

a

people. It is true

1955 and the first ±ew Ue* *S1X -°

rest 0±

monthg

5eri°i?i

remains at

the

of

cause

1Q_A
J
wpr.i*L ^
1954, the average worker in from this year, and it is possible least the first six months of next
Thl manufacturing put in about 39.7 the "improvements" will not be year.

quarter

wlwf'n?10M
period in 1954.

same

increase

the

the

increased

r-C

ing

down much below the current 2.4

have

wh
couraged by what
they see. Shortrun factors are less important be¬

1 have indicated but if we ther expansion in plant and
bu^4 many units below this num- equipment expenditures. Although
ker m *956>
will be perform- the Department of Commerce and

ahead, the next
six to nine months, it is not likely
that unemployment will be pulled

St??."umber
ing spent on consumer goods and
services

.

as

months

£
able income
less. As!_a result, japproximately Industries

annual rate of around

billion.

the

loe+

W(frke

rate of about $5 billion

while, cur¬
being accumu¬

jeve]

Personal income will have to come
disposworking more hours
or from
a
a little rppp;v;nfJ uift
at
„tt
higher nav
Almost
all

n

mately $2 billion instate and local

a

remainder of this decade,

|

business

much faster rate than

a

1.2 million homes annually for the

two factors: an

jncrease jn the number of people
-n ^be iabor fftrpo
force and the hfah
high

^os™exclusively

lc",ra

„

total employment was sion that we can absorb at least long-run trends, and they are en-

incr?ase

and equipment
and
residential million. As a
consequence, any in¬
construction, become explosive as crease in income
resulting from
soon as they are paid out to individuals in the form of wages and
from
salaries and other forms of per- crGaqG in the'size of the working
sonal income. When they become f
Here the pr0Spects are not
personal income, the portion left
VinGrGaSG mieht
over after taxes is either spent oh g
anticinated
Excent
for
this
consumer's goods or is saved. Our
£ ,, inc?p
* in the number of
data show ThaT during the last
rigi
leyel of total

over the year, but this was
offset by an increase of approxi-

inventories have been accumulat-

ing at

all of these in-

on

vestments, i.e., the building up of
inventories, the expansion of plant

xjiwwmc

nmxx

mnvo

income of current workers, the additional total personal
income
resulting from the in-

In

Funds spent

awic

,

average

nas posstble because of

industrial

to the expenditures

commercial

plants

has

cttuviy, uui, .til me .vrrcti

arger

ical improvements.

for a total demand for houses well
Current fconsumption of finished
in excess of the current rate of goods is at the highest rate in our
family formation. The Twentieth history. We have seen that inCentury Fund's study of America's comes are apt to continue to rise
Needs
and Resources
estimates and, thus,? firms see the need for
+w
ir
million

cm.

as a

clined

In addition
on

.

_

oc¬

has
the

*

^a?J*£JL?nvmpnt
J Inrecentwe™" there
cume. in reoeni weeKs, luere

JSt?
To uft f a'nn
0f mf£
eight to 12 billion dollars
Gross little
in

plus additions and alterations call

dwelling units will be needed
in my opinion, the psychology
during the fifties. Perhaps this of the businessman has never
study is a little high in the esti- been more optimistic than it is at
inasmuch
crease in employment amounted mate, but we have a lot of evi- present.
Businesses all over the
S in to more than $8 billion. Such an dence to substantiate the conclu- country have been studying our

whole, housing starts will be
in the neighborhood of 1.2 to 1.a
million

We have experienced an almost
unbelievable business upturn dur-

quarter

building which amounts to approxibately 26% of total business
investments has had a bolstering

cause the level
employment to

highest

trends found in these indicators.

aJ'
°r
third quarter
During the past year, total emULl™,vPloyment increased about three
crease m mvestmen s in residen- million persons from 621 miUion
tiaP construction eve^ quarter to @5 minion. If it is assumed that
^
I+ioi the average income of these new
This steady
rise
in
residential

uGTi-a
downturn* in residential
building activity, but, for the year

history?" can be partially found in
a
close scrutiny of national accounting data.

ing

shows

record

com

.

has occurred within

income

the

J

«wuSTe£

*•

but

permits,

goods,
particularly houses
~
1
automobiles,
non-durables

and services.

,

year. Autolikely to be down
but this will be offset by increased

ts

,

h

to

spend

0f

a

a

rising income that will be the

chief

factor

level

of

in

w|n

i00k

months.

That is,

I

the

the

determining

business

that

ductive capacity. These are: tech-

by his willingness
relatively large share

demonstrated

few

probably more than sales in other areas.
other, is familiar with what
Will the Expansion End?
has been happening to hoysing.
During the past year, business
According to the statistics I have
studied, we will have constructed has expanded its capacity to proby
year-end
approximately
10 duce, and the big question now is
million
homes
in
this
country whether or
not the
expansive
since the end of World War II. phase is about to come to an end.
This year, new housing starts will By and large, there are three conapproximate 1.2 to
1.3 million ditions that determine whether or
units and now .the big question is, not business is apt to increase its
"Have we overbuilt and, thus, investments in plant and equipmust we expect a downturn in ment and, thus, increase its pro-

OD_

which is

timism of the consumer

sibie

This group,

that

if

thp

mobile sales

are

.

.

.

increase of about $2 billion.

an

'n

parable period of last

any

home building?" In my own mind,

the end of World War II

next

the

over

believe it is posfirst

half

something

of

like

1956
1953.

spending from all sources
decreasing rate

will increase at a

then

an(J

as

the

electi0n

uncertainties will take
^
t0

nears,

over,

and

impossible
confusion that

becomes practically

penetrate

awaits

us

should

the

in mid-1956,
the bolstering forces of

our economy

be somewhat weaker

painted, there are
the government can
take jn order to prevent a signifitban

steps

j

bave

tbat

Continued

on

page

36

(2443)

36

The Commercial and Financial Chronicle

Continued

from

swimming

35

page

pools

will

be

much

more

commonplace than they are
today, and research will have
placed many new products on the

National Economic Picture
downturn

cant

well

prior to the elec¬

Due
to
credit
restraints,
housing starts have already fallen
below the figure of a year ago.
If they continue to drop the Fed¬
tion.

anticipate

of

mortgage debit in

excess

billion

next

Such

within

total
of $200

level

a

the

market. Ultrasonic

10

years.

housing can
be stimulated through the use of

an estimate
emphasize the direction
our economy will have to continue
to go if free enterprise is to con¬
tinue to demonstrate its superior¬
ity over any other system.
In
concluding m,y remarks, I

credit

would like to summarize what has

to

will

Reserve

eral

credit

ease

Treasury

know

turns

be

funds

larger
than

to

buy

few

a

open

mar¬

if

and

unemploy¬
noticeably, there

up

this

howl

for

of

our

is

economy

agencies

and

should

con¬

direction

struction companies.

Other tools that

maintain
tion

of

growth

taxes,

the

are:

both

started

reduc¬

personal

when

and

Because

to

longer-run

of

toward

investments, and

in

expenditures

the

mains

increase

for

hospitals,

What

of

real

a

the

Next

possibility.

about
If

this .is

listen

to

my

number

3,

10

to

then

so,

to

answer

"What

for business

is

activity

immediate danger.

forces

two

family

the

years,

will

cars

the

us

to

recent

from

Higher prices

outlook

the next

over

page

I

ever,

taken

are

the

six

major

that

were

These

were

variables

into

account,,.

individual

freedom

will

the

true

economic

disappear from

un¬

emplovment. the increase in pro¬
and
the expected de¬
cline in the average work week.

Industry

to get it.

pointed

is just

one

example.

industry the 8,500,000th

trend

Assuming

situation
static

somewhat

defense

"Ward's"

expendi¬

change significantly
down

or

and

that

we

cars

year,

the

ex¬

any

the

of

estimates

of

ary,

what

it

can

000

accomplish.

during

the

high

levels

thirties.

it

-Our

in

to

17

million

be done, it will mean
raise the living standard

can

If
we

our

markets

to

be

sion in the

increased by

are

indicated, there will
tremendous

a

use

bankers

expan¬

of credit and mort¬

will

come

their share of the increase
furnish the purchasing

in
as

power

for

they
that

will be necessary to
supply satis¬

half

October.

like month




another

to

the

$264,000,average monthly
rose

might

the

ingot

beginning
and

steel

capacity

like week

a

2,404,000 tons.

month

(revised)

equivalent

tons

the rate

to

with

compared

as

week ago.

a

rate for the weeks in

ago

A year ago

1955,

castings

125,828,310

of

5,

Dec.

for

as

of

was

Jan.

1955 is

1,

1955.

99.6% and

the actual weekly

pro¬

production

placed at 1,958,000 tons

or 82.17%.
The operating rate is not
capacity was lower than capacity in 1955.
percentage figures for 1954 are based on annual capacity of

because

of Jan. 1, 1954.

as

distributed by the electric light
industry for the week ended Saturday, Dec. 3, 1955,

power

estimated at 11,359,000,000 kwh., a new high all-time record
the industry. The previous all-time high record was estab¬

lished in the week ended Nov. 19, 1955, when

11,149,000,000 kwh.
produced, according to the Edison Electric Institute.
This week's output increased 632,000,000 kwh. above that of
the previous week, when the actual output stood at 10,727,000,000
kwh; it increased 1,747,000,000 kwh. or 18.2% above the com¬
parable 1954 week and 2,777,000,000 kwh. over the like week
were

in 1953.

Car

,

Loadings Decline 12.3% in Thanksgiving Day Week

Loadings of

freight for the week ended Nov. 26, 1955,
12.3% below the preceding week, due to
the Thanksgiving
Day holiday, the Association of American Rail-,
revenue

decreased 94,963 cars or

roads reports.

-

Loadings for the week ended Nov. 26, 1955, totaled 676,685cars, an increase of 93,165 cars, or 16% above the corresponding
1954 week, and an increase of 80,455 cars, or 13.5% above the cor¬

responding week in 1953.
U. S. Automotive Output Set to

Hold to Record Pace

Until the Christmas Recess
Output in the automotive industry for the latest week ended
1955, according to "Ward's Automotive Reports," rose last
1,600 units short of the April 25-30th record and the
industry is ranging well ahead of any full year car output in auto¬
motive history.
Dec. 2,

week to just

Last week

the

industry assembled

an

estimated

182,670 cars,

151,799 (revised) in the previous week. The past
production total of cars and trucks amounted to 210,965
units, or an increase of 37,022 units above the preceding week's

car output advanced above that of the previous
by 30,871 cars, and truck output by 6,151 vehicles during the
week. In the corresponding week last year 144,983 cars and 21,720

week

trucks

of

the past two years.

The Board

said

year

October

was

the

credit has pushed to

ninth
a

new

straight month
record level.

previous months, auto credit
the climb.

once

again

was

the major

Output Scheduled

to

This

Rise to 98.8% of
Week

year

ago.

the

trucks, and for the comparable 1954 week, 3,807

previous week

Business
Commercial
Dun &

in

case

force in

Capacity

a new
weekly record of 2.413,278 net tons
castings, while operating at 100% «f
capacity in the
ended Dec. 4, "Steel"
magazine reported. Operations have

Failures

and

week ended Dec. 1

capacity operations.

it added,

Order

mer

or

more

will

have

1956, depending'

plans for freight

cars

steel

producers

than

cars

double

Oil well drillers

requirements and

are

on

one

to

two-months

for the remainder of
this

of

product and producer.

year's expected

1955

total

output

of

attempting to line up midsumthe backlog of orders by structural

Mildly Higher

failures

edged

up

209

to

in

the

Bradstreet, Inc.

While the toll

was

below

a year ago

when

occurred, it was slightly above the 202 in 1953. Failures re¬
mained 21% below the 264 in the similar week of 1939.

174

Failures with liabilities of $5,000 or more dipped to 171 from
in the previous week and 190 last year.
All of the week's

upturn occurred among small failures with liabilities under $5,000.
rose to 38 from 31

exceeded
with

19

$100,000
in

the

in

both last week and
of

14

the

Retailers had 105 failures

to

31

failing

a

Liabilities

year ago.

businesses

as

compared

preceding week.
as

tractors

business in

and

from 205 in the preceding week, according to

week

been at 99% for the last three
weeks, it noted.
The publication said that
judging from the way customers are.
lining up business, 1956 may also be a year of

Move

industrial

wholesalers climbed to 25 from

now,

cars

221

Steel producers set

Right

Dominion

667 trucks.

of ingots and

carry-over

placed at 6,435 cars and 751
plants built 6,327 cars

was

In

They
Steel

a

output last week

trucks.

and $185,-

has been the

21,720

and 819

instalment

consumer

As

and

Canadian

instal¬

of last year.

'"

assembled.

were

Last week the agency reported there were 28,295 trucks made
in the United States. This compared with 22,144 in the previous
week

October, the Board noted, total consumer credit
outstanding amounted to nearly $27,000,000,000. This was slightly
more than
$5,000,000,000 higher than at the end of the like month

87,500

working in
we

This was about
the past seven months.

over

37,500 units.

continue,

pushed

during

Jf the trends that

economy

October

outstanding

factory housing to the 56 million
households we will have by 1965.
are

buying in

of

family unit in the United
St-atec by something like
$2,500 to
$3,000.
every

much as is

surpasses

that

announced

Scored in the Week Ended Nov. 19th

At the end of

labor

additional

instalment

rose only
$17,000,000 in October of last
000,000 in October, 1953.

did

15 years.

next

Institute

output, states "Ward's."

ment credit

force will be approximately 80 to
«2 million persons
by 1970. The
challenge" to business "is to
15

figure

It said consumer instalment credit

the

real

jobs within the

former

September, the jump was $544,000,000; August $679,000,000; July $562,000,000; June $765,009,000; March $466,000,000; and
February, $72,000,000.
October's rise, however,
easily surpassed increases registered

estimates are based upon
the assumption that we will con¬
tinue to have fluctuations but that
we will not allow
unemployment
the

The

of

The amount of electric
energy

In

These

reach

1,255,000 trucks for 1955.

high but the monthly increase was the smallest since Febru¬
the Federal Reserve Board reported.

increase

future

level of business represent an
op¬
portunity for free enterprise to
show

Some 849,000 units are on tap for December
with the 863,800 units turned out in the month just
Continuance of the current tempo will assure 8,000,000

and

new

$425 bil¬

the

programming fell just 6,000
high of 216,629 units posted in

record

1948.

Last week's

lion bv I960. $500 billion
by 1965,
and $630 billion by 1970.
Such

week's

year's

Electric Output Surpasses Previous All-Time High Record

revealed.

Consumer

Gross National Product

a

neighborhood

the

two years combined prior to 1948.

tremely low level of employment
that exists today, we can look for¬
ward to

For the

week's

either

have, each

as

Steel

and

Iron

week

of

annual

on

compared with

ended.

up

the

compared

tures will not

not

Saturday

some

represented the lowest level reached since the week ended Oct. 22.
All indications are that the
industry will continue to produce
at a record pace at least until the Yuletirae recess
snags activity,

activ¬

international

remain

that

scheduled to roll off

or

The stepped up pace came in the wake of the
holiday-crimped
turnout of the week before (151,799 cars and
22,144 trucks) which

long-term

a

business

our

will

and

to

in

late

was

truck built
United States assembly
car

50.6%, Ford 27.4%; Chrysler, 17.8%; and the remaining producers,
Overtime was prominent throughout the industry with Ford
Division, Chevrolet, Plymouth, DeSoto and Buick booking "extra"
day operations, the statistical agency reported.

then, the results

clearly

upward

based

With consumers

4.2%.

An attempt was made to
employ
conservatism throughout the an¬
even

American

The industry's ingot production

duction

the close of last week. This is a strong 10% better than the 6,674,933 turned out in the previous peak year of 1950.
Ford, Chevrolet and Plymouth, with schedules nudging their
best all-time or postwar yields, accounted for a large 55% of the
week's program, "Ward's" said.
|
Corporation-wise, General Motors took the lion's share of

ductivity

alysis, but

The

comparable

way

a

operating rate of steel companies having 96.1% of the steelmaking
capacity for the entire industry will be at an average of 98.8% of

our

,

employment that might be ex¬
perienced, the expected level of

the

eventually,

of

price

to $47

high construction activity and good
with any major economic downturn un¬

97.6% of capacity and 2,356,000 tons

and,

rose

improvement in construction.

The

scrap

said

perity

week, "Ward's" noted that the industry is ranging well ahead of
any full year car output in automotive history.
Some 7,341,942 cars were scheduled to be built this year by

anticipated change
in
our
population, the expected size of

the labor force, the degree of

publication

for

meaning

this

above

tons

4

rising and

5%

capacity

the most direct

automotive

be

2,384,000

Govern¬

arithmetical

scrap

likely while building activity is up. "Steel" pointed out that one
why readjustment in 1954 was so mild was the continuing

and

been

will

figure

ment for the continuance of pros¬

25-30 record) and 28,295 trucks were expected to be produced last

the

gage

more

Federal

the period April 25 to 30, "Ward's Automotive Reports" stated on
Friday, last.
Estimating 182,670 cars (just 1,600 units short of the^ April

economy

is impossible

the

reveal

can

economic

have

ever

the

upon

on

reason

was

line

me

to^ reveal in any great detail at

If

ourselves

will
depen¬

1956

The

be

we

rises, "Steel's"

Its composite

a

business go hand in hand,

for

It

ton,

The

costs have

In

this meeting all of the steps taken
to arrive at our conclusions. How¬

as

will

Steel Division and Ten¬

$42,000,000,000 and double the amount spent in

grasping for every pound of steel they can get, this is as good a
time as any to revise the price structure. Besides, steel production

it has been

past,

through 1970.

will

17 mil¬

who

Porter

1

these price

by

124,330,410 tons

question

project the American

this

15 to

labor force,

our

out¬

study that has enabled

-find

employment

workers

a

to

political vocabulary.

units short of the all-time weekly

to

our sys¬

power

living stand¬

our

necessary

more

dent

sored

in

our

income for the

find

since Jan. 1

will

the

entering

good fortune to have partici¬
pated in a major industry spon¬

ity.

within

is

K.

H.

year and will bring the postwar total to more than $320,000,000,000.
This will mark the tenth consecutive year of record building.

to

upon

tem.

The State oi Trade and

my

to

Businessmen

called

15 years?"

In

up

be

confidence in

It

to

economy

of

67-cent rise over the preceding week.
Turning to new construction, "Steel" magazine observed that
record $44,000,000,000 will be poured into new construction next

was

Continued

please

the

Unaffected

for

living standards that

will

you

and

without
find,

hard

be

enterprise

the

prove your

lion

Within 10

us.

knowhow

Coal & Iron Division.

composite holds at $128.14.
gross

the

possess

nish

The

pushing

are

tomor¬

through free private enter¬
prise. However, if we fail to fur¬

standard of living incon¬

a

of

Decade?

short-run

our

look.

15

to

There will be those among you
who will think I am
overly opti¬

mistic

our

homes

continue to raise

re¬

Division

Company Inc., Lukens Steel Co. and U. S. Steel Corp.'s American

the

of

many

ards

well

as

"modern"

free

like

same

inflation

resources,

ceivable to most of

highways, schools, etc. Our econ¬
omy is healthy and growing rapid¬
ly, perhaps too quickly. More in¬
flation in 1956 is

up

in

have been indicated.

prices
have
in a period

short of labor

we are

other

as

move

business, the improvement of farm
income, the liberalization of so¬
cial security, the encouragement

the

in

terms

achieve

the next six to nine

over

months.

available to

are

continue

not

price changes included Connors Steel

nessee

our

levels, I see no important reason
why the short-run forces at woik

a

will be 1,800,000 tons or 50% above
31, 1954. New business bookings this year will
reach 3,400,000 tons, the highest since 1929, "Steel" pointed out.
Costs continue to push up prices and the latest to announce

Steel & Wire Division, Columbia-Geneva

We

Although our economy
currently operating at high

fabricators by Dec. 31

the level of Dec.

row.

been said.

more

from

purpose

portion

lending

more

that

strong

a

for

much

the

on

controls

ment

will

than

bills

We

ket.

do

Thursday, December 8, 1955

panel control lighting will all be
more

to

..

clothes, television tape recorders,
electronic music synthesizers and
common

figure is only

a

made

to wash

means

steel

.

from

30.

against 100, while the toll among

17, and among construction con¬
In contrast, "declines brought the manu¬

facturing toll down to 36 from 43 and commercial service to 12
from
last

15.

year;

More

wholesale

and

the three other lines

construction
were

below

concerns

the

1954

failed

than

level, with

the largest decline among manufacturers.

Geographically, failures increased in five of the nine regions.
The toll in the Middle Atlantic States
edged up to 80 from 78 and
in the Pacific States rose to 62 from 52. Failures declined during
the week
South

four

in

four

Atlantic

regions, including

States.

regions, while five

More
were

the East North Central and
failed than last year in

businesses

below

1954.

A marked

rise from

a

Number 5488

Volume 182

year ago

.

The Commercial and Financial Chronicle

..

the corresponding week of 1954.

Wholesale Food Price Index Strikes Five-Year Low
Drifting downward for the second straight week, the Dun &
Bradstreet wholesale food price index slipped to the lowest level

1950, just before the start of the Korean war. The
to $5.99 from $6.02 in the previous week
off 12.6% from the year-ago figure of $6.85.

since June 20,

29 index dropped

and

was

hams,
coffee, steers and hogs. On the decline were flour, rye, oats,
bellies, lard, eggs, cottonseed oil, potatoes and lambs.
The index represents the sum total of the price per pound

gift items and Spring apparel. Total volume was slightly above
that of the comparable week last year.
Department store sales on a country-wide basis as taken from
the Federal Reserve Board's index for the week ended Nov. 26,
1955, increased 10% above that of the like period of last year. In
the

preceding week, Nov. 19, 1955, an increase of 6% was re¬
ported. For the four weeks ended Nov. 26, 1955, an increase of
6% was recorded. For the period Jan. 1, 1955 to Nov.
26, 1955,
a gain of 8% was
registered above that of 1954.
Retail

Higher in wholesale cost last week were wheat, corn,

of 31

raw

sales

volume

in

New York

City

past

the

week

'

of food prices at the wholesale

every

hunger
and
longing
of
beings for sympathy and
understanding are emotions com¬
mon
to every man whether he
human

rose

be

money, or
in the cold

City for the weekly period ended Nov. 26,
In

preceding week, Nov. 19, 1955, a decrease of 6% was recorded.
For the four weeks
ending Nov. 26, 1955, no change occurred.
For the period Jan. 1, 1955 to Nov.
26, 1955, the index recorded a

Index Holds to Narrow
Range of Preceding Week

commodity price level again showed little change,
although individual price movements during the week were mixed.
The daily wholesale commodity price index, compiled by Dun
& Bradstreet, Inc., registered 275.87 on Nov. 29, compared with
274.69 a week previously and 278.11 on the like date last year.
With the exception of corn, grain prices were generally lower
the past week. Leading grain markets reported moderate trading
activity. Although corn prices rose somewhat, buying interest
was maintained at a steady level.
The general

the

Grain

buying

week

by

25,000,000

in

reports

general

of

somewhat

was

prices fell slightly as

reduction in acreage.

result of the relatively poor

a

export business and slow buying generally.

Wheat supplies dimin¬

1,239,000 bushels reducing the existing supply
to 403,500,000 bushels, according to the Board of Trade.
Trading
was
fairly active in the soybean market, despite an absence of
renewed export buying and the slow demand from processors.

ished last week by

Soybean supplies decreased by 376,000
supply now stands at 20,171,000 bushels.
Flour prices declined moderately a

bushels

and

the

total

buying
Falling
wheat prices prompted buyers to delay their flour purchasing;
buyers anticipate a subsequent fall in flour prices. Some buyers
thought that farmers have been holding back their wheat offerings
for tax reasons and will sell more freely in 1956.

interest

was

week

ago

and

somewhat below that of the previous week.

wholesale coffee prices last
Sellers limited their offerings as they anticipated an im¬

There
week.

in the

slight rise

a

was

provement in Brazil prices.
At the end of the week Brazil

coffee prices rose moderately,

result of increased political tension within the country and

3S a

further

export registration restrictions.

Brazil for the week ended Nov. 26

Shipments of coffee from
higher than, those of the

were

previous week. The total was 304,000 bags as against 292,000
of the prior week. Of last week's total the United States received
178,000 bags, Europe 120,000, and all other destinations 6,000
Cocoa trading was moderately active and prices advanced slightly.
At the end of the week United States importers purchased 4,500
bags of Brazilian cocoa for December-January shipment.
Cotton prices dropped slightly the past week and there was
a moderate decrease in buying interest.
:'J

The price level was somewhat

below that of the comparable

1954 date.
There

indications that the United States Department

were

of

recommend a soil bank plain whereby cotton
farmers will be paid to take part of their land out of cultivation.
This would check the cotton supply and prices would be less
apt to fluctuate so widely. Exports for the season up to Nov. 24
were placed at 504,991
bales, as compared with 1,091,425 in the
same period last season.
Agriculture

may

Trade Volume Last Week Lifted By

Christmas Sales

Traditional Christmas sales promotions and low temperatures
stimulated retail guying the past week, as consumers began- fullscale holiday shopping.
The total dollar volume was slightly
that

of

the

previous week and moderately exceeded
level of the similar 1954 week.
Automobile
both

new

sales

and used

considerably

rose

the

gains reported

in

Wednesday of last week

the

period ended

3 to 7% higher than a year ago,

was

according to estimates by Dun & Bradstreet, Inc. Regional esti¬
mates varied from the comparable 1954 levels by the following

percentages: New England +3 to -f-7; East 0 to -f4; South +2
-|-6; Middle West -f5 to +9; Northwest and Southwest +4 to

to

Considerable
last week.

scored

were

in

dining room sets, upholstered living room chairs and occasional
end tables.
Volume in draperies and floor coverings expanded

sales

in

china and glassware

surged

Refrigerators and automatic laundry equipment

were

upward.
the best-

selling major appliances*

Shoppers stepped-up their purchases in apparej a week ago,1
was slightly above the level of the similar

and the total volume
week

last

Department

year.

stores

reported increased

turnover

in women's scarfs,
coats

and

noticeably.

gloves, handbags and jewelry. Volume in cloth
suits expanded, while fur coat sales dropped
Men shoppers sought overcoats, raincoats and heavy

Winter

suits.
Food sales

appreciably, with noticeable gains in poultry,
candy and canned goods. Housewives were interested in fresh
fruits and vegetables and volume in frozen foods expanded some
rose

what.
Fresh

-

meat

turnover

was

considerably lower than that

the corresponding period a year ago.




which

Because the people supply both
the capital and receive the bene¬

increased

our

what has evolved

than

United

bases

of

we

human beings, we
a
far better

our

purposes as a

world

of

our

Conflict

Between

America to¬

for

peace

strive will only be won
us

well

as

confidence in them. In that
we

hope

can

for

better

a

and for all mankind.

us

Consolidated Edison

air-

our

abroad,

or

re-

The
and

First Boston Corporation
Halsey, Stuart & Co. Inc., as

joint managers of an investment
banking
syndicate,
yesterday
(Dec. ,7) offered $70,000,000 of

Military

Demands and Demands for

Tax Reduction

day is truly a "People's Capi¬
talism." The Advertising Council
coined that phrase, and"l like it.
The

abandon

can

our

duce our Armed Forces,

productivity,

in

we

fields,

Consolidated

Edison

Co.

of

New

1 While we seek resolutely for York, Inc. 3%% first and refundformulae for peace, we still are ing mortgage bonds, series K, due
Information confronted by the need to keep Dec. 1, 1985, at 101% and accrued

States

Agency
haS
adopted
it
as
a
meaningful way of describing our
system abroad, and has asked the
Advertising Council to produce an
exhibit
called
"People's
Capitalism" for display at trade fairs
around the world. That exhibit is

forging

in

ahead

the

for

interest,

scurrying for maximum defensive
strength, a hard task of budget

to yield approximately
group won award of
the bonds at competitive sale on.
Dec, 6 on a bid of 100.35%.
Net proceeds from the iinahcing will be applied by the com-

balancing

pany

race

intercontinental missiles, and 3,322%. The
more modern and powerful atomic

With all the frustrating

weapons.

confronts

While

us.

toward

the

payment

of

presently building and will be set Geneva's disappointments mean short-term bank notes (which at
up at Union Station in Washing- no crash programs of accelerated
Nov. 9, 19^5, aggregated $65,000^ton early in February, so many military preparedness, they rein- 000) incurred in connection with
of us may see it before it begins force decisions already made to the interm
financing of the cornits tour abroad.
provide for the maximum security pany's construction program, and
The term

"People's Capitalism"
of reclaiming for
America's
aggressive use words
v/hich
significantly characterize
the very life blood of our whole
system. In 1787 it was, "We the

has

virtue

the

people," who did ordain and
tablish

Constitution.

our

es-

There is

our 9ourRry against a hatefully
expanding Communism. It is not
aasy
marshall public support
|or major expenditures of public
funds for military security in the
face of demands for tax reduction,
J: 1S n2t easy .f°r jhe farm fami-

lies

America, for instance, to

the balance toward the payment
for additions to utility plant on
.

and after Oct. 1, 1955.

The new bonds will be redeemable at optional redemption prices
ranging from 104% to par, and at
special redemption
jng from. 101% to

prices recedplus

par,

ac-

accept
with
good grace
the crued< interest in each case,
feel
harrowing necessitypf maintainConsolidated Edison Co. of New
Lincoln's "of the people, r by the'
mutual ...security programs of York, Inc. is a public utility cornpeople, and for the people," and'uuge proportions. Yet we must pany engaged in the manufacture,
those words now describe not only flot
^alax th°se. efforts which generation, purchase and sale of
scarcely

citizen who does not
himself strongly bound to;
a

Government but

our

system as well.

economic

our

;

i

v

We need not and should not be

foolishly

apologetic

that what

we

for

the

in this

have

me®t the threat of Communist ex- gaSj electricity and steam.
pansion. Vigilance is no dearer pRes electric service
buildinP

nersuadeothers'

T

to

our

wav

is capitalism. We should not
have to think to a
try to disguise it by calling it moment as We "have tonight of
something it is not. Instead of the what h ' happened in America in
term capitalism becoming a
toe
weapon to be used against us it
t
,
that it i<?\ometoinff trnlv
should become a proud descripnew
and
we
can
carrv
tion of what our system in fact
word
There
are
T

try

dvLmic
Sad

^

is, namely a new "People's
Capitalism" which serves our nation in a way no other system has
ever approached.
|

now

for

it

the

it produces the most
In America today
not
developed as Marx

has

many.

predicted. Far from the poor becoming poorer and the rich becoming
richer,
ever-increasing
benefits have come to the great
of

citizens/Contrast this

our

Soviet, concealing behind its curtains and its barbed

wire

its low

living standards, slave labor and
cruel
restrictions
on
personal
freedom.

thi
fl

k

elements

t

ion

Th

this

to

npnnlp

^tions

nf

have

per

ip„

two

main

in

determining
the
direction in which they will go.
First, they want to follow the
direction they believe to be the
winning side. Second, they naturally want to pursue the path
which will do the most for them
in providing for their own needs,
their own culture, and their own
happiness.
concerns

George Mason of Virginia in
the Revolutionary Convention of
i776

stated

philosophically

he deemed to be

one

of the

objectives of the system
is

no

doubt that we

what

at

assuage

ke Borough of Manhattan. The
con£Pany controls, through ownerfr,lpf °} mi votlr?2 stock, Consoiiaatea I eiegrapn & Electrical
Subway Company, which owns a

sysIem ,°I. underground conduits
USS~ PJJ-nclPally by the company,
0/°J;.h.e
months ended Sept.
3">

conferences made

painfully clear is the need to press
relentlessly the logic and justice
of

our

own

cause.

Moreover

our

military and economic assistance
programs must be continued. We
can no more abandon the support
of
our
freedom-loving
friends

the company and
showed

total

its

operat-

BSJ°L?% o7/

JfJ

net income of $51,426,376.

great

of gov-

ad?Pted only two months later by
Geneva would do much to Jefferson and his Committee m
this
conflict.
We
can the
first section of a great

but what these

1955>

subsidiary,

Greenfield

Ration.One
of the^tenable
rights ot all men
ought to be,

Others Now

>
D
r
With Boren & Lo.

are

claim "E" for wholehearted effort,

the

the

county; gas service in the Boroughs of Mauhattan and the
Bronx' in the First and Third
Wards of the Borough of Queens,
and in the more populous parts of
Westchester County. It also supP^es steam service in a part of

u

(Special to The Financial Chronicle)

that the conferences just held this
year

sup-

and
Queens excepting the Fifth Ward
(Rockaway District) all in the
City of New York' and in West~
chester County excepting the
northeastern portions of that

eminent then emerging. That obin a conflict, continuing and cold, jective was pursuing and obtainIndeed there was little to indicate ing happiness. That thought was
There

It
in

"'SS Boroughs of Manhattan,
J tbis Republic
Bronx, Brooklyn, Richmond,

Si

fact th

coun-

with the wretched socialism of the

home furnishing lines
Furniture retailers reported increased sales in modern
gains

somewhat, while

ties
of the corporations
employ their membership.

of

The

world for

Of the Cold War

fit

as

toward

move

appreciation of

as

Meeting the New Phase

mass

-f 8 and Pacific Coast +1 to -j-5%.

shall

by their confidence in

Actually
of retail trade in

their welfare

people.

6

page

efforts to

our

heart, as well as a willing
hand, and hold a firm interest in

spirit

cars.

The total dollar volume
on

with

from

terms of conventions.

PeopleTthaf Americans hate"™

which

Continued

not

are

simply in terms
of
in rates of interest, or

will dedicate

we

of the

or

sentiments

warm

las^

Coupled With Colder Weather

above

If

rise of 2% from that of the
corresponding period of 1954.

during

to take about

of grain land out of cultivation, government pay¬

acres

ments to compensate the farmers for the

Wheat

stimulated

Administration plan

an

These

expressed

the

Wholesale Commodity Price

citizen of the East

a

West.

■

above that of the like period of last year.

his universal pos*-

as

The

about 2% above the comparable period a year ago.
In. the week preceding the gain amounted to 1% above the 1954
volume.
v.-

store sales in New York

man

session.

mildly to

1955, advanced 5%

,

do we can

we

fervently hope and willfully strive
for the sharing of that right by

foodstuffs and meats in general use and its chief func¬

tion is to show the general trend

level.

it for ourselves. If

,

last week.

14 in the preceding week

Canadian failures rose to 32 from

and compared with 31 in

Nov.

The dollar volume of wholesale orders expanded
moderately
Wholesalers reported increased turnover in Christmas-

appeared in the Middle Atlantic States, in contrast to a

considerable decline in the Pacific States.

37

(2449)

BEVERLY

p

HILLS,

Calif.—Roy

Greenfield, Sidney A. King,
Philip Klein and Edward. E.

assQciated ^

^ ^

..

nartnn

they said, the pursuit of happiness. Boren & Co., 186 North Canon
In this Christmas season it is Drive. Mr. Greenfield was fornot inappropriate to

reflect upon merly Vice-President of Fewel &
the significance of that thought. ro in Pharee of their local office*
If It belongs to us as it belonged. Sf" MnZ
V
with
Fewel"
to them we must believe in that Mr' More was also with Fewel
right for others as we believe in & Co.

*

IVso

38

(2450)

The Commercial and Financial Chronicle

The

Indications of Current
Business

Activity

week
Latest

AMERICAN

IRON

Indicated

steel

AND

STEEL

operations

INSTITUTE:

(percent of

AMERICAN
Cruae

and castings

PETROLEUM

oil

capacity)

Dec. 11

(net tons)

m.a

Dec. 11

Gasoline

(bbls.

average

(bbls.)

average

(bbls.)

6,858,800

Distillate fuel
Residual

Revenue

oil

OF

Ago

;

82.1

2,404,000

AMERICAN ZINC

1,958,000

6,749,500

Slab

(17,741,000

7,657,000

Nov. 25

7,476,000

26,201,000

26,310,000

27,075,000

Nov. 25

2,396,000

2,351.000

2,050,000

Nov. 25

11,844,000

11,948,000

11,250,000

6,974,000

24,130,000
«

8,600,000

8,242,000

7,811,000

7,661,000

155,866,000

153,580,000

Nov. 25

151,607,000

149,191,000

34,315,000

35,144,000

36,436,000

36,244,000

151,566,000

134,916,000

145,374,000

(bbls.)

at

148,661,000

Nov. 25

45,045,000

45,293,000

46,299,000

771,648

835,396

U.

8.

Private

583,520

699,384

583,048

Public
State

and municipal

OUTPUT

Bituminous

(U.

coal

.

Dec.

.

S.

BUREAU

and

DEPARTMENT STORE

Electric

000

$394,011,000

$302,762,000

216,313,000

278,458,000

196,088,000

West

AGE

steel

115,553,000

106,674,000

96,869,000

84,517,000

•

16,169,000

18,684,000

22,157,000

*10,460.000

9,990,000

7,432.000

478,000

500,000

456,000

Nov. 26

.Dec,

INDUSTRIAL)

DUN

—

(E.

&

!

M.

J.

575,000

146

142

126

133

3

1,359,000

10,727,000

10,853,000

9,612,000

1

209

...Nov. 29

205

237

5.174c

5.174c

Nov. 29

$59.09

$59.09

$59.09

$56.59

$47.00

$45.83

$44.50

$32.33

Zinc

(East

St.

Nov. 30

42.700c

43.050c

42.700c

Nov. 30

29.700c

45.375c

44.575c

43.575c

.Nov. 30

30.650c

100.125c

99.125c

96.250c

..Nov. 30

90.250c

15.500c

15.500C

15.500c

15.000c

—

at

—

at

...

Louis)

I.Nov. 30

15.300c

15.300c

15.300c

Nov. 30

14.800c

13.000c

13.000c

13.000c

11.500c

at

MOODY'S

BOND PRICES DAILY AVERAGES:
U. S. Government Bonds
I

Average corporate

—_

Dee.

6

95.03

94.80

96.28

...Dec.

6

99.21

107.44

107.62

107.80

110.70

111.25

115.24

Dec.

6

110.70

110.88

109.42

109.79

6

112.56

107.27

107.62

107.62

6

102.46

110.70

102.63

102.80

Dec.

105.00

6

105.69

106.04

101.21

Dec.

6

109.06

107.62

107.80

107.98

Dec.

6

111.25

108.70

108.88

109.06

112.00

—

-I

Railroad
Public

.;

-

——

————~

Group

...

——....

Utilities

Group
Group

Industrials

4—

MOODY'S

BOND YIELD DAILY
D. S. Government Bonds—

Average

corporate.:

6

6

1

;

Industrials
MOODY'S

3.29

3.13

3.12

3.10

2.89

3.20

3.18

3.03

Orders

INDEX

PAPERBOARD

(tons)
(tons)

of

194!)

AND

DRUG

AVERAGE

REPORTER

STOCK TRANSACTIONS
LOT

DEALERS

EXCHANGE
Odd-lot

sales

—

PRICE

FOR

AND

SPECIALISTS

(customers'

ON

Customers'

short

other sales

N.

Y.

sales

3.41

3.39

6

3.30

3.29

Dec.

6

3.24

3.23

3.22

3.06

Dec.

6

407.3

402.6

398.0

409.1

Nov. 26

227,809

214.122

Nov. 26

284.924

279,120

199,444

294,652

Nov. 26

288,522

95

244,798

104

Nov. 26

102

542,397

599,443

591,291

343,160

107.17

106.98

107.15

106.56

3.38

3.22

3.28

3.10

Consumed

by

2

THE

N.

Y.

EXCHANGE AND ROUND-LOT STOCK
OF

MEMBERS

1.022,356

$58,694,698

1,033,314

1,261,044

1,287,125

$56,370,657

$65,732,153

$62,232,710

Nov. 12

807,386

838,716

1,075,018

4,830

1,412,954

7,015

10,181

9,383

831,701

1,064,837

1,403,571

$42,741,072

$57,896,498

$62,265,089

269,790

464,100

Nqv. 12

802,556

Nov. 12

$42,246,724
199,230

213,900

OF

199~230

213,900

269,790

464,100

419,490

429,190

479,500

380,050

443,030

408,140

12

437,120

9,774,320

Nov. 12

9,907,610

11,269,010

10,217,350

15,992,880

10,315,750

12,706,130

16,741,940

MEM¬

purchases
sales

Total sales

Total round-lot transactions for
account of members—
Total purchases
:
Short sales

226,110

438,110

1,490,980

1,929,090

237,600

286,960

454,440

Nov. 12

29,300
267,210

585,120

22,200

19,700

37,500

Nov. 12

235,570

418,440

256,510

492,310

257,770

438,140

529,810

sales

(1947-49

=

SERIES

U.

S.

DEPT.

504,040

Nov. 12

480,840

566,425

88,800

680,649

78,680

67,230

98,170

Nov. 12

490,463

Nov. 12

500,950

566,294

579,263

578,581

579,630

633,524

676,751

All

1,859,350

2,021,470

325,080

2.951,275

OF

54.261,773

27,805,803

22,864,261

18,099,757

85,415,091

74,232,987

$487,413,821
44,087,975

$477,025,801
58,177,460

30,760,116

443,325,846

418,848,341

432,967,910

23.832,183
•

77,874,895
$463,728,026

',!■

OF

$42,900

11,900

11,700

*23,300

22,400

$79,900

$79,600

$77,000

9,688,621

COM¬

October

of

737,056

Oct.

month

of

of

Oct.

of

as

29

October

Oct.

25

874,837

706,936

1.362,267

1.209,252

1.392,963

14,543,307

11,796,569

12,845,924

157,068

.—:

-

active

STORE

$44,3C0

12.000

23,200

9,552,939

DEPT.

29

147,263

116,389

1,376,111

1,337,932

1.6G4.762

19,302,000

19,243,CC0

19.236,000

SALES—SECOND FED¬

DISTRICT,

BANK

OF

N.

of

FEDERAL

Y.

1917-49

—

October:
108

108

116

111

110

118

108

112

131

123

130

117

116

116

13,381.000

*13,378,000

12,612,000

7,694,000

7,623,000
*5,755,000

5,531,000

—

EMPLOYMENT AND

PAYROLLS—U.

LABOR—REVISED

S.

103

DEPT.

SERIES—Month

of

October:
All

manufacturing

Durable

(production

workers)

goods

Non-durable

—

goods

Indexes

(1947-49

(1947-49

*108.2

102.0

*158.8

139.1

16,929.000

►16,916,000

16,007.000

9,725,000

*9,644,000

9,002 000

7,204,000

*7,272,000

7,005,000

$25,127

*$24,768

$23,709

19,519

*13,547

19,199

$44,646

*$44,315

$42,908

27,396

*27,229

23,008

$2,788,843

$2,848,115

$2,130,872

.i—

of employees in manufac¬
turing industries—
'
manufacturing

Durable goods
Non-durable goods

—

'

108.2

160.8

Average=10Q) —

L—

number

All

.'

i

7,031,000

Avge.—100)—
-

manufacturing

Estimated

5,687,000

———————

Employment Indexes
All manufacturing

—

.

MANUFACTURERS' INVENTORIES AND SALES
(DEPT.

OF

Month

of

COMMERCE) NEW SERIES—
September (millions of dollars):

Inventories—

I

—

Non-durable
Total

Sales

NEW

YORK

STOCK

(000's

EXCHANGE—As

Cash

net

extended
hand

on

Total

of

debt

to

in

customers'
value

of

Market

value

of

accounts-

balances..

banks

free

listed

on

borrowings

on

IN

in

credit

U.

S

—

balances—

shares

listed

borrowings

Member

Oct.:

customers—

and

Market

Member

of

omitted):

customers'

bonds—

——

U.

issues

S.

other

Govt,

collateral

THE UNITED

39,775

43,457

357,459

370,620

329,750

920,294

976,695

192,781,695
106,109,809
126,519

197,536,241
104,547,615
95,588

923,796
148,162.510

2,326,237

2,233,556

1,474,690

$307.5

*$305.3

$287.9

212 0

*211.2

195.8

92.1

*91.5

56.0

*56.1

52.5

28.1

27.9

26.3

35.8

35.7

34.2

35,567

109,395,338
156,655

STATES

(DEPARTMENT

OF COMMERCE)—Month
September (in billions):
Total personal income ——I———

Wage and salary, receipts, total
Commodity producing industries.—
Distributing industries
industries

—

—I

—

employees

for

special

82.8

in¬
5.3

-—

5.3

4.5

7.0

7.0

Proprietors and rental income

6.6

49.7

*48.8

49.0

Personal interest income and

27.1

*26.7

24.7

transfer

dividends

payments

non-agricultural

PRICES

RECEIVED

—

income

313.040

1,775,120

2,643,324

2,070,280

2,956,364

573,780
2,561,871
3,135,651

111.3

109.5

85.6

91.8

S.

farm

FARMERS

DEPT.

OF

17.0

*16.9

16.3

292.6

*290.8

272.1

—

235

242

INDEX

AGRICUL¬

100—As of Oct.

—

15:

products

230

Crops

—

Commercial vegetables,

fresh

—.—_

Cotton

Feed,

grains

Food

and

hay

grains

Oil-bearing

.'.

crops

Potatoes
—

—-

and

products
products

—

animals

Poultry

229
230

190

278

285

233

167

174

204

and

—

235

188

210

220

225

275

129

160

443

427

441

236

240

241

264

257

262

240

eggs—

■

217

243

227
130

Tobacco

Meat

224

223

220

Fruit

.

Wool

295,160

1,688,763

2,013,843

BY

NUMBER —U.

TURE— 1910-1914

Dairy

Nov. 12
OF

contribution

surance

Other labor income

3,157,929

Nov. 12

REAL

Nov. 29

products
foods

Meats
All commodities

32,725,277

94.524,725

250

265

195

202

154

222

226

293

$945,838

$1,059,597

$766,284

155,324
504,788

163,174
521,302

383.209

168.473

179,355

141,148

291,549

309,642

250,070

455,621

463,068

417,216

$2,521,593

$2,696,538

$2,121,888

100):

commodities

Processed

54,193,249

52,924,571
-•

BALES:

as

RESERVE

Livestock

Commodity Group—
Farm

71.424.438

monthly), unadjusted
daily), unadjusted
Sales (average daily),
seasonally adjustedStocks unadjusted
Stocks, seasonally adjusted

All

Nov. 12

Nov. 12

Total sales

—

194,280

1,658,590

Nov. 12

*

LABOR

206,980

1,884,700

floor—

Short sales

NEW

73,156,089

64,117,040
4

COMMERCE)—

Sales (average
Sales
(average

■

PRICES,

OF

—

other than

farm

and

foods

111.0

83.9

*84.7

Nov. 29

98.2

98.4

98.8

72.9

*73.0

103.5

Nov. 29

77.1

113.2

119.2

85.0

118.7

on

new

high

introduction of Monthly Investment Plan.

annual

ESTATE

AREAS

Nov. 29

•Revised figure.
((Includes 860,000 barrels of
foreign crude runs.
SEased
of Jan. 1, 1955, as
against Jan. 1, 1954 basis of
124,330,410 tons.
tAll-time
tNumber of orders not
reported since




111.1

—Nov. 29

114.5

OF

FINANCING
U.

BOARD—Month

Savings and loan
Insurance
Bank

—

of

IN

HOME

Sept.

NON-FARM
LOAN

(000's

associations

companies

and

Mutual

S.

trust

companies—1

savings banks

Individuals

capacity of 125,828,310 tons

as

record.

W: Li

L

i.

Miscellaneous
Total

lending

"

$28,337,036

99.334,159

1,892,160

1,038,600

Nov. 12

off the

102,763,701

39,647,694
117,556,133

'i

1,930,410

1,232,880

12

Nov. 12

transactions initiated

1,253,670

931,090

Nov!
floor—

sales

1,117,710

1,138,070

Nov. 12

the

Total sales

Other

of

storage

Oct.

i

Sept.

(running bales)-.

Average=l(K)—Month

Total

Nov. 12

sales

Total sales
on

$24,005,371

44,435,779

$44,600

(DEPT.

LINTERS

spindles

Total
Nov. 12

Other transactions Initiated
Total purchases
Short sales

WHOLESALE

1

RESERVE

749,060

Total

Other

of

29____—

Service

Transactions of specialists in stocks in
which registered—

Total

Month

-

l_

month

ERAL

SPECIALISTS:

purchases
Short sales

51,559

of

Nov. 12

Nov!

52,278

COM-

Government

TRANSACTIONS
FOR
ACCOUNT
BERS, EXCEPT ODD-LOT DEALERS AND

Other

OF

as

Stocks

sales-

ROUND-LOT

Other

DEPT.

-

SERIES

Linters—Consumed

TRANSACTIONS
(SHARES):

sales

61,746

dollars):

PERSONAL INCOME

Nov. 12

STOCK

Total sales

Other

City

public

Less

Other

—

—

consuming establishments

Total

Nov. 12

ON

—

Member firms
carrying margin

Nov. 12

SALES

—

In

31

dealers-

STOCK

——

—

In

Cotton

83

—Nov. 12

Number of shares

Total round-lot

6

Dec.

Nov. 12

sales

Round-lot purchases

of

AND

Credit

by dealers—

ACCOUNT

Dec.

STOCK

Number of shares—Total sales
Short sales

FOR

3.13
3.45

COMMISSION:

Dollar value

TOTAL ROUND-LOT

3.30
3.58

Nov. 12

Customers'

_

York

NEW

Nov.

COTTON

purchases)'—t

Odd-lot purchases by dealers (customers'
sales)—
Number of orders—Customers' total sales

Other

3.30
3.59

ODD-LOT ACCOUNT OF ODD-

SECURITIES EXCHANGE

by dealers

sales

3.32

3.60

Dec.

Number of shares
Dollar value

Eound-lot

6
6

INDEX—

100

=

City

Durable
...

activity
Unfilled orders (tons) at end of
period..

OIL, PAINT

Dec.
Dec.

ASSOCIATION:

received

Production

Percentage

3.30

3.13

3.20

„

COMMODITY

NATIONAL

3.31

2.55

6

Group

Group

-

,

States

COTTON GINNING

All

2.73

6

Group

Utilities

2.89

Dec.

—-—.—

Public

2 87

..Dec.

;

Baa

Railroad

'l.

__

Payroll
Dec.

—..Dec.

■

.

A

———.—

INVENTORIES

'

AVERAGES:

—

Aaa
Aa

109.42

Dec.

..Dec,

A

90,415

152,137

$26,053,663
78,531,988

—

———

Aaa

Baa

.

_

——■

New

DEPARTMENT

Domestic

Lead (New York)
Lead (St. Louis)

_—

Manufacturing
Retail

4.797c

Nov. 23

67,047

87,365

42,167

CITIES—Month

—

United

(millions

221

5.174c

83.448

87,748
43,881

&

__1

York

QUOTATIONS):

at

DUN

i—...

MERCE—RUNNING

Electrolytic copper—

refinery at
Export refinery at
Straits tin (New York)

(tons)

—

1

:

—

—.

MERCE

&

Pig Iron (per gross ton)
Scrap steel (per gross ton)
METAL PRICES

89,188.000

73,dl9,000

PRICES:

lb.)

(per

—,

Total

Dec.

COMPOSITE

Finished

of

'

As of

AND

INC.—215

Central

BUSINESS

RESERVE

100

bK/\I)STREET, INC.
IRON

),030,000

.Nov. 26

kwh.)

(COMMERCIAL

(tons

(tons)

Central

'"Pacific

INSTITUTE:

(in

output

FAILURES

=

period

VALUATION

...

Central.

South

Outside

$305,501,000

.

Ago

pounds)

■

173,248,000

105,547,000
91,080,000

Mcnth

Wholesale
.Nov. 26

1—

INDEX—FEDERAL

AVERAGE

of

2,000

Atlantic

Atlantic

East

MINES):

(tons)
(tons)

SALES

SYSTEM—1947-49
ELECTRIC

OF

lignite

Pennsylvania anthracite

EDISON

England

South

55,513,000

$278,795,000

14,467,000
COAL

October:

New

construction—

Year

Month
of

89,462
of

PERMIT

of

Middle

Total

Dec.

end

New

ENGINEERING

construction

at

Mountain

construction

INC.—Month

output all grades

(tons

'

662,109

of that date;

Previous

'

RAILROADS:

647,964

are as

Latest

pounds)

BRADSTREET,

10,888,000

Nov. 25

CONSTRUCTION

INSTITUTE

smelter

BUILDING

2,513.000

25

676,685

of quotations,

cases

Unfilled orders at end of
period

NEWS-RECORD:

Total

zinc

Stocks

6,270,100

at

ENGINEERING

in

or,

either for the

are

October:

(bbls.)

AMERICAN

production and other figures for th^

cover

Ago

99.6

Nov. 25

freight loaded (number of cars)
Nov. 26
freight received from, connections (no. of cars)__Nov. 26

Re/enue

CIVIL

oil

fuel

ASSOCIATION

at

6,851,109

Thursday, December 8, 1955

.

Year

Shipments

Residual fuel oil output (bbls.)
Nov. 25
Btocks at refineries, bulk terminals, in
transit, in pipe linesFinished and unfinished gasoline
(bbls.) at
—Nov.

(bbls.)

*2,356,000

.

Dates shown in first column

that date,

on

of

(bbls.)

Kerosene output (bbls.)
Distillate fuel oil output

Kerosene

Month

"97.6

82,384,000

Nov. 25

stills—dally

output

month ended

2,000

outputr—dally

42 gallons each)

Crude runs to

Week

or

month available.

or

INSTITUTE:

condensate

ana

Previous

Week

Equivalent to—
Bteel ingots

following statistical tabulations

latest week

.

institutions

BANK

omitted):

163,961

■

Volume

Number 5488

182

.

.

The Commercial and Financial Chronicle

.

39

(2451)
Vv
*s.

it INDICATES

Secu riti es

N ow

Allied-Mission Oil,

Inc., Tulsa, Okla.
598,800 shares of common
stock (par one cent). Price—50 cents per share. Proceeds
—For acquisition, exploration, drilling and development
of leases. Address—P. O. Box 1387, Tulsa, Okla. Under¬
writer—United Securities Co., same address.
Oct. 3

(letter of notification)

Aloha, Inc., Las Vegas, Nev.
Aug. 8 filed 900,000 shares of common stock (par $1)
and 900,000 shares of preferred stock (par $10) to be
offered in units of

—$11

related

share of each class of stock. Price

one

unit. Proceeds—For construction of hotel and

per

activities

for

and

contingencies, stock in trade,
and working capital. Underwriter—None.

Alpha Plastics Corp.
Nov. 18 (letter of notification) 300,000 shares of class A
stock (par 10 cents).
Price—$1 per share. Proceeds—
$90,000 to redeem the preferred stock; $18,100 to be
payable

stockholders for

to

to company;
for working

N. Y.

advances

heretofore

made

for payment of current obligations, etc,£ and
capital. Office—94-30 166th St., Jamaica,

Underwriter

J.

—

E.

DesRosiers, Inc., 509 Fifth

Ave., New York 17, N. Y.
Arizona

Public

Finance

Co., Phoenix, Ariz.
Sept. 16 filed 78,006,081 shares of common stock to be
offered for subscription by holders of life insurance
policies issued by Public Life Insurance Co. Price—20
cents per share. Proceeds—For working capital, Under¬
writer—None, sales to be directly by the company or by
Salesman of the insurance firm.

Assateague Island Bridge Corp. (Md.)
Oct. 7 filed 100,000 shares of 5% cumulative preferred
stock to be offered primarily to members of the Ocean
Beach Club, Inc.
Price—At par ($10 per share). Pro¬
ceeds—For construction of bridge across Sinepuxent Bay
from the Worcester County • (Md.) mainland
Jo Assa¬
teague Island. Office—Washington, D. C. Underwriter—
None.

in

•

ratio to be determined

an

Industries, Inc., Houston, Texas
(letter of notification) 200,000 shares
com¬
mon stock
(par one cent). Price—$1.50 per share. Pro¬
ceeds—To purchase dies and materials and for working
10

capital, etc. Office — 6006 Harvey Wilson Drive, Hous¬
ton, Texas. Underwriter — Benjamin & Co., Houston,
Texas.

f

operations.

Livesley Bldg., Salem, Ore. Underwriter—None.

manufacture

and

sale

Bonus

Plywood Corp., Boston, Mass.
100,000 shares of common stock (par $1)
to be offered in exchange for the outstanding 291,431
14

filed

shares cf

stock of Plywood, Inc. at an exchange

common

of

stock

Inc., Denver, Colo.

the "grip-lock" driver and
St., New York, N. Y. Under¬
writer—Ellis-Greenberg Co., 1051 Carroll St., Brooklyn,

Dec.

N. Y.

Plan.

Office—137 Grand

.■■■•

v

it Borden Co., New York
V
1 filed 400,000 shares of capital stock
.

be issued under the

8

'

it Belgian-American Bank & Trust Corp., New York
l\ov. 2y filed $20,000 of American Depositary Receipts
to be issued against Parts Sociales of Union Miniere du
Haut-Katanga, a Societe Congolaise a responsibilite
limitee, to be issued at rate of 40 American Depositary

B-Thrifty,- Inc., Miami, Fla.
Nov. 23 filed 37,000 shares of class A common stock (par
$25). Price—$38 per share. Proceeds—To open addi¬
tional retail
stores.
Business—-Supermarket concern.

Shares for each full Part Sociale.

writer—None.

Northwest

Office—5301

Underwriter

Canada.

Uranium

—For

Corp.,

Overton,

Ranch

E.

Reed

Nov.

Casualty Insurance Co.

Oct. 28 filed 200,000 shares of common stock (par $2.50),
of
which
170,527 shares are to be publicly offered
at

$5

share,

by

at $4.50 per

Underwriter

Arthur

—

it Blue Moon Mining Corp., Salem, Ore.
(letter of notification) 100,000 shares of capital
stock. Price—At par ($1 per share). Proceeds—For min-

Nov. 25

(Bids

<

Southwestern

$2,625,000

CST)

noon

Price—$16.50 per share.

(par 10 cents).
retire

bank

loan

inventories;

December

9

(Friday)

Cascade Natural Gas Corp

Texas

Eastern

and

Proceeds

directors; to in¬

reduce accounts payable.
Island City, N. Y. Business
cutting devices. Underwriter

to

and

Common

Co

Read

Dec.

Corp...
.Preferred
Inc.) $2p,000,000

Co.

&

Offering—Expected

it Central Illinois Light Co., Peoria, III.
1
(letter of notification) a maximum of 25,000
of common stock
(no par) to be offered to

102,000 shares

Inc.)

Inc., New York.

shares

Price — At 90% of present market value.
construction, improvement, or extension

employees.

Proceeds—For

Hinton

December

19

(Monday)

Underwriter—None.

of facilities.

-

~

from

loan

today (Dec. 8).

Transmission

(Dillon,

Notes & Common
-V";-

(White, Weld & Co.; First California Co. and Elanchotfefc.
&
Jones,
Inc. )
$3,589,450
notes
and
71,789:
shares of stock.

Telephone

Republic Co.

& Co.,

—Schuster

.Equip. Trust Ctfs.
$9,600,000

EST)

noon

States

(Central

due

Office—42-26 28th St., Long

Co

(Bids

notes,

it Cavitron Corp.
Nov. 23 (letter of notification) 18,035 shares of common

CALENDAR
Pacific

(12/9)
interim

repay

Chicago, 111.

Equip. Trust Ctfs.

5J/2%

bank loan and for new construction. Underwriters
—White, Weld & Co., New York; First California Co.,
San Francisco, Calif., and Blanchett, Hinton & Jones,
Inc., Seattle, Wash.

Co. Office—Rockford,
Krensky & Co., Inc.,

M.

Corp.
of

$3,589,450

rights to expire on Dec. 16. Price—To be supplied by
amendment.
Proceeds—Together with other funds, to

and

the Blackhawk Mutual Insurance

Gas

Natural

filed

31, 1960, and 71,789 shares of common stock (par
$1), to be offered first to common stockholders of record
Dec. 6 in units of $50 of notes and one share of stock;

and

Town

18

Oct.

29,473 shares are to be pur¬
Country Insurance Agency, Inc.
share. Proceeds—To acquire through merger

per

chased

Insurance Co., Burlington, N. C.

Underwriter—None.

Cascade
&

Denver, Colo.

2

ton, N. C.

Co., Inc., Reno, Nev.
Fire

Co., Inc.,

(letter of notification) 30,000 shares of class B
common
stock (par $1) to be offered for subscription
by stockholders. Price—$10 per share. Proceeds—For
working capital, etc. Office—262 Morehead St., Burling¬

Nev.

Underwriter—James

expenses.

&

Underwriter—To be named.

Nov.

3,000,000 shares of com¬
(10 cents per share). Proceeds

Price—At par

Office—Toronto,

Brothers

Baruch

Corp.,

Carolina Casualty

(letter of notification)

mining

—

erty and equipment, construction of additional facilities,
etc.

Securities, Inc., Salt Lake City, Utah.

Ute

k

July 15 filed 505,000 shares of common stock (par $1.)
Price—$4 per share. Proceeds—For acquisition of prop¬

(par one cent). Price — Three cents per share.
Proceeds—For exploration and development costs. Office
—206 North Virginia St., Reno, Nev. Underwriter—Mid

stock.

Under¬

•' '

York.

New

stock

Big

Ltd.

ploration of mining properties in Cuba.

Caribou

mon

«'■

500,000 shares of capital stock (par $1Price—$1.50 per share. Proceeds—For ex¬

Canadian).

Big Ridge Uranium Corp., Reno, Nev.

Oct. 28

Ave., Miami, Fla.

27'filed

Oct.

Oct. 19 (letter of notification) 9,000,000 shares of common

America

37th

Canuba Manganese Mines,

Big Chief Uranium Co., Pueblo, Colo.
Sept. 20 (letter of notification) 1,500,000 shares of non¬
assessable common stock (par 10 cents). Price—20 cents
per share.
Proceeds—For expenses incident to mining
operations. Office — 441 Thatcher Bldg., Pueblo, Colo.
Underwriter—Investment Service Co., Denver, Colo.

Southern

(Thursday)

(par $15) to

company's Employees Stock Option

—Manufactures ultrasonic

December

(President),

mining expenses. Office—1154 Bannock St.,
Denver, Colo. Underwriter — Mid-America Securities,
Inc., Salt Lake City, Utah.

crease

Missouri Pacific RR

Hall

E.

ceeds—For

stock

ISSUE

Uranium,

Louis

(letter of notification) 3,000,000 shares of capital
(par one cent). Price—10 cents per share. Pro¬

—To

NEW

Office—c/o

■»

Oct. 28

Automatic Tool Corp.
Sept. 7 (letter of notification) 20,000 shares of common
stock (par $1). Price—$5 per share.
Proceeds—To set
up a factory and purchase equipment and machinery for

111.

Atlas

Nov.

ISSUE

ing

Blackhawk

Oct.

REVISED

610

\

Atlas

ITEMS

later. Atlas presently owns 496,-

holdings of such stock to 80%.

screw.

PREVIOUS

Plywood, Inc. stock and desires to acquire
additional 133,809 shares in order to bring its

680 shares of
at least

ADDITIONS-

SINCE

'

'■

.

December
Maine Fidelity
(P.

National

12

(Monday)

Old Line Insurance
Securities

December

Cumberland

13

&

&

Delaware Power

Common

B

shares

of

each-V

(Tuesday)

Delaware Power &
(Bids

50,000

$400,000

shares

December 28

(G

Walker

H.

&

120,0JO

Preferred

Sept. 6 (letter of notification) 12,500,000 shares of non¬
assessable capital stock.
Price—At par (one cent per
share).
Proceeds — For expenses incident to mining

(Reynolds & Co.) $6,000,000

$5,000,000

January

.

______Equip. Trust Ctfs.
CST)

noon

"

$8,700,000

CST)

Utah.

National Propane Corp
(Carl SI. Loeb,

Preferred & Common

Oct.

Pittsburgh Coke & Chemical Co
(Hemphill, Noyes & Co.)

160,000

...Common
shares

^

January 17

(Tuesday)

and

Bonds

Pennsylvania Electric Co

-

(Bids

Pennsylvania

■■

to

be

Invited)

Electric
(Bids

to

Preferred

Co
invited)

be

.

Office—810 Deseret Building, Salt Lake City,

18

filed

$8,000,000

Las Vegas, Nev.
amendment) 435,000

(by

preferred

stock

(par 10 cents) to
stock and
per unit.
Proceeds
For production
of production payments.
.Underwriters—First California Co., Inc., San Francisco,
870,000
shares

shares of

of

common

common

Corp.;

(Lee Higginson

Harriman

Estabrook

&

Co.)

Ripley & Co.

Inc.;

December 14

(Bids

(Wednesday)

Telephone Co
11

EST)

a.m.

Hydro-Electric

'

Lynch,

Fenner & Beane; and
6,952,293 shares

Pierce,

'

-

Corp.)

'1

$1,000,000

(Offering

(Hirsch

&

Co.)

^

.

^

Debentures
*

$300,000

^

Common

LeCuno Oil Corp
and First
Co., Inc.) $4,050,000
&

Co.

(Vickers Brothers)

California

by

January 31
Texas

Utilities

(Tuesday)

Co
to

be

Common
invited)

about

$15,000,000

$300,000

February 15
Dallas Power &
(Bids

(Wednesday)

Light Co
to be

.Bonds

invited)

$10,000,000

New York.

*

February 28

Common

Old Empire, Inc.




Co.)

$2,000,000

underwriting)

Dillon

&

Common

Debentures

General Capital Corp

(Eastman,

Weld

to stockholders—may be underwritten
Blyth & Co., Inc.) 100,000 shares

(Eids

Crystal Dairies, Inc

(No

White,

Seattle-First National Bank

Common

Investing

40

(Thursday)

Colohoma Uranium, Inc
(General

page

&

Commission...Debenture^
15

on

Class A Common

(Blyth & Co., Inc.; The First Boston Corp.; Goldman, Sachs
Co.;
Kuhn,
Loeb
&
Co.;
Lehman
Brothers;
Merrill

^

(The First Boston Corp. and A. E. Ames & Co. Inc.) $50,000,000

December

Price—$20.20

(Wednesday)

January 18

..Debentures

$25,000,000

stock

Continued

and

$1,500,000

Ford Motor Co

New Jersey Bell

stock.

—

Debentures

Tracerlab, Inc.

shares of $1.20
(callable at $20 per share)

be offered in units of one share of preferred
two

$20,700,000

Salt Lake City, Utah

Underwriter—Utah Securities Co., same City.

cumulative

.1

Rhoades & Co. and Union Securities Corp,)

Uranium Corp.,

Channel Oil Co.,

Preferred

New Orleans Public Service Inc..
(Bids to be invited) $6,000,000

$500,000

100%

activities.

(Wednesday)

11

Preferred
noon

22,500 shares

Chaffin

(Monday)

Magnavox Co.

common

Common
shares

...Preferred

EST)

a.m.

of participating junior subordi¬
due Nov. 1, 1970 (with
stock purchase warrants for a total

$750,000

of common stock, par $1 per share).
(in units of $500 each). Proceeds—For
working capital, etc. Underwriter—Paul C. Kimball &
Co., Chicago, 111.

(Wednesday)
Co.)

January 9

$10,000,000

Light Co

(Bids

Daitch

of

400,000 shares

Price—At

■■■&»<

Corp

Quebec

detachable

Common

Corp

Zapata Petroleum Corp

jt

filed

7

nated sinking fund 6% debentures

(Tuesday)

(Bear, Stearns & Co. and Keith, Reed & Co. Inc.)

..

Bonds

EST)

a.m.

Central RR.
(Bids

Inc.)

Century Acceptance Corp., Kansas City, Mo.

Common
Co.)

11:30

.

«

Light Co.

11:30

(Bids

Muzak

&

Gas Corp
(Bioren

Illinois

Georesearch
A

Otis,

December 20

i-".;.-'

•

Co.

50,000

Corp.)

•

Common

Nov.

Common

$1,000,000

Class
(Equitable

(Gearhart &

: i:

Life Insurance Co._

W. Brooks & Co., Inc.)

International Metals Corp

Texas Electric

Service

(Bids

to be

(Tuesday)

Co

invited)

...

$10,000,000

Boston

Philadelphia
Bonds

Pittsburgh

San Francisco

Private JV,ires to all

offices

Chicago

Cleveland

40

The Commercial and Financial Chronicle

(2452)

Underwriter—Central

purposes.

Continued from page 39

Securities

Co., Dallas,

East Basin

Calif.; and Blair & Co., Incorporated, New York. Change
Name—Formerly Continental Production Corp. (see

Offering—Indefinitely postponed.

below).

Buying

Charge
Oct.

17

common

to be offered

warrant

one

chase

Service,

Inc.

in units of five shares of class A stock and

(warrant holders will be

entitled to

pur¬

class A share at 62V2 cents per share). Price—

one

unit. Proceeds—For working capital and to
current expansion and liquidate notes and liabili¬

$2.50

per

meet

ties. Office—522 Felt

Bldg., Salt Lake City, Utah. Under¬
writer—Cayias, Larson, Glaser & Emery, Inc., same city.
Charleston

Parking

Service,

Inc..

of notification) 120,0C0 shares of non¬
voting common stock, class A—(par 50 cents) and 60,000
shares of voting common stock, class B (par 10 cents)
Aug.

to

(letter

1

in

offered

be

units of

class A

two

and

one

class B

Proceeds—For general work¬
ing capital.
Office—505 National Bank of Commerce
Building, Charleston, W. Va.
Underwriter—Crichton
Investment Co., same address.
«hare.

Price—$5 per unit.

Cisco

Uranium Corp.,

Salt Lake City, Utah
Aug. 10 (letter of notification) 7,000,000 shares of capital
*tock
(par one cent).
Price—Three cents per share.
Proceeds—For mining expenses, etc.
Office—2630 South
2nd West, Salt Lake City, Utah.
Underwriter—Denver
Securities, Inc., Denver, Colo.
(
Citizens Credit Corp., Washington,

D. C.
(letter of notification) $245,000 of 6% subordi¬

Sept. 27

debentures

nated

due

1975

(with warrants to purchase
2,450 shares of class A common and 490 shares of class
B common stock).
Price—99%.
Proceeds—To supply

capital to subsidiaries. Office—1028 Connecticut Ave.,
W., Washington, D. C. Underwriter—Emory S. War¬

N.

ren

& Co.. same address.

Cole
Nov.

Engineering Corp.

9

of notification)

(letter

stock.

Price—$10

share.

per

2,575 shares of common
Proceeds—For new ma¬

Underwriter—Spencer, Zimmerman & Co.,
Inc., Columbus, Ga.

chinery, etc.

Colohoma

Uranium,

Nov. 9 filed 2,500,000

Price—40 cents
development

cent).
tion

and

rate

purposes.

Inc.

(12/15)

shares of common stock (par one
per share. Proceeds—For explora¬
expenses and for general corpo¬

Office—Montrose, Colo. UnderwritersInvesting Corp., New York; and Shaiman & Co.,

General

Comet Uranium Corp., Washington,

D. C.
(letter of notification) 700,000 shares of com¬
(par one cent). Price—Five cents per share.
Proceeds—For mining operations. Office—501 Perpetual

Aug. 20

stock

mon

Bldg., Washington 4, D. C.

Underwriters—Mid America
Inc., Salt Lake City, Utah; and Seaboard
Securities Corp., Washington, D. C.

Securities,

Proceeds—For expenses incident to

25

(letter of notification) 1,500,000 shares of com¬
stock (par one cent).
Price—20 cents per share.

Office—Corpus Christi, Texas. Underwrite!

—Simon, Strauss & Himme, New York; William N. Pope,
Inc., Syracuse, N. Y., and Draper, Sears & Co. and Chace.
Whiteside, West & Winslow, Inc., both of Boston, Mass.

center.

Grange, Ga.

officers of company.

Office—Mailory-Hutchinson Bldg., La
Underwriter—Franklin Securities Co., At¬

lanta, Ga.
Cross-Bow Uranium Corp.
Aug. 29 (letter of notification) 5,000,000 shares of com¬
mon
stock.
Price—At par (six cents per share).
Pro¬
ceeds
For mining operations. Office — 1026 Kearna
Bldg., Salt Lake City, Utah. Underwriters—Potter In¬
vestment Co., and Mid-America
Securities, both of Salt
Lake City, Utah.
—

it Crown Central

Petroleum

Corp.,

Baltimore,

of

shares

of

stock

common

(par $5)

be offered

to

subscription by employees pursuant to the
Employees Savings Plan. Proceeds—None.
Cuba
Nov.

for

company's

filed

$2,000,000

•

of

4%

Veterans,

Underwriter—Allen & Co., New York.

Cumberland

Nov.
Price

—

Gas Corp.
(12/13)
50,000 shares of common stock

filed

17

To

be

supplied

by amendment.

(par $1).

Proceeds

—

To

Southeastern Public Service

Underwriter—Bioren &
•

Daitch

Oct.

28

Crystal

filed

Nov. 8 filed 140,000 shares of 5y2%

preferred stock; 10,-

000 shares of 4% second preferred stock; and 4,000 shares
of 2% third preferred stock to be sold directly to mem¬
bers of

the Association.

Price—At par ($25 per share).
general corporate purposes, including
cash requirements necessary to meet requests for re¬
demption ahead of maturity on outstanding certificates
of indebtedness and 5y2% preferred stock and to finance
Proceeds

—

For

accounts

receivable; also to improve existing facilities.
Underwriter
None; stock sales to be made through
Association's employees. Office—Kansas City, Mo.

chasers

and

of

York

The

City.

United

States

Life

Insurance

Price—At the market

Co.

per-share).

Proceeds—For general corporate

Office—310

So.

Michigan

Ave.,

in

New

(estimated at $181.50

Chicago

4,

purposes.

111.

Under¬

writer—None.

Co., the selling stockholder.
Co., Philadelphia, Pa.

Dairies, Inc.

(12/15)

$2,000,000 of 4% convertible subordinated
1975. Price—100% of principal amount.

and The United

City.

Price

share).

—

States Life Insurance Co.

At

Proceeds

Office—310

So.

the
—

in New York

market

For

(estimated at
general corporate

$110

per

purposes.

Michigan Ave., Chicago 4, 111.

Under¬

writer—None.
Continental

Production

Corp.

Aug. 29 filed $8,700,000 of 15-year 5y2% income de¬
bentures due Sept. 1, 1970 and 870,000 snares or common
stock (par 10 cents) to be offered in units of
$50 of
debentures and five shares of stock.

Price—$50.50

per

unit.

Proceeds—For acquisition of production
payments.
Office—Las Vegas, Nev.
Underwriter—First California

Co., Inc., San Francisco, Calif.

Statement Amended and

Name Changed—See Channel Oil Co. above.

Cook Industries, Inc., Dallas, Texas
Aug. 1 (letter of notification) 199,999 shares of common
stock (par $1), of which 107,915 shares
are to be sold

by

company

Price—$1.50

and 92,084 shares by a selling stockholder.
share. Proceeds—For general corporate

per




Micro-Ledger Accounting Corp.

(letter of notification) 297,000 shares of com¬
(par 10 cents), to be offered for subscription
by stockholders.
Price—$1 per share.
Proceeds—For
general corporate purposes. Office—53 State St., Boston,
Mass. Underwriter—None.
stock

mon

Entz-White

Lumber

and

share

one

lets.
ment

with

merger

of
Shop well Foods, Inc., and for expansion program. Office
—Bronx, New York City, N. Y. Underwriter—Hirsch &
Co., New York.
Delaware

company

Power & Light Co. (12/13)
$10,000,000 of first mortgage and collateral

Nov. 16 filed

trust bonds. Proceeds—To
repay bank loans. Underwriter
—To be determined by competitive

bidding. Probable!
Kuhn, Loeb & Co.
(jointly); Lehman Bro¬
thers; Union Securities Corp.; The First Boston Corp.
and Blyth & Co. Inc.,
(jointly); White, Weld & Co. and
Shields & Co. (jointly); Merrill
Lynch, Pierce, Fenner
& Beane and Kidder,
Peabody & Co. (jointly): W C
Langley & Co.
Bids—To be received up to 11:30 a.m.
(EST) on Dec. 13.
bidders:

Halsey Stuart &

Salomon

Bros.

&

Co.

Inc.;

Hutzler

Delaware Power &

Light Co.

effective

Nov.

(jointly);
(jointly); Lehman Brothers; W. C. Langley & Co. and
Union Securities Corp.
(jointly); Morgan Stanley & Co.
Bids—To be received up to 11:30

a.m.

(EST)

on

Dec. 13.

it Deleon Uranium Co., Fort Collins, Colo.
Nov. 30 (letter of
notification) 590,000 shares of
For

Price—At par

mining

Collins.

Dec.

filed 240,000 shares of class A
(voting) common
(par $25 cents); 214,285 shares of class B (voting)
common stock
(par 35 cents); and 300,000 shares of class
1

stock

C

(non-voting) common stock (par 50 cents). Of these
shares, 40,000 are to be offered to officers, directors and

employees of the

Sept.

share).

per

common

Proceeds—

Underwriter—None.

Minerals

Co.,

Class A, B and C stock will
policyholders of the Farm & Home

company.

Casper, Wyo.

(letter of notification) 600,000 shares of non¬
common stock
(par five cents). Price—50 cents
per share. Proceeds—Expenses incident to
mining oper¬
ations. Office—223 City and

County Bldg., Casper, Wyo.

Underwriter—The Western Trader & Investor, Salt Lake
City, Utah.
Dinosaur Uranium

Corp., Salt Lake City, Utah
Aug. 15 (letter of notification) 15,000,000 shares of com¬
Price—At par

(one cent per share).
Pro¬
ceeds—For expenses incident to
mining activities. Office
—15 Exchange Place, Salt Lake
City, Utah. Underwriter
—Western States Investment Co., same city.
•

Dirats

Nov.

10

Photo-Plate

Co., Inc., Westfield, Conn.
(letter of notification) 7,000 shares of common

stock

(par $10) and 4,000 shares of 6% non-cumulative
preferred stock (par $25).
Price—To be supplied by
amendment. Underwriter—None.
Dix Uranium

Corp., Provo, Utah
Aug. 10 (letter of notification) 6,000,000 shares of
assessable capital

share).
North
Weber
•

stock.

Price—At

par

non¬

(five cents

per

Proceeds—For

mining expenses.
Office—290
Ave., Provo, Utah.
Underwriter —
Investment Co., Provo, Utah.

University

Eagle Newspaper Enterprises,

Inc.

Oct. 19 filed 75,000 shares of
7% cumulative convertible
preferred stock (par $10) and 75,000 shares of common
stock (par 10 cents) to be offered in
units of one share
of each class of stock.
Price—$10.10 per unit. Proceeds—
To exercise an
option, which expires on Dec. 4, 1955,
to
acquire certain properties of the

Brooklyn Eagle,
Inc.; and for working capital.
Office—Brooklyn, N. Y.
Underwriter
James Anthony Securities
Corp.. Npw
York.
Offering—Not Expected'until after Jan.
1, 1956.
Eagle Rock Uranium Co., Salt Lake
City, Utah
Sept. 19 (letter of notification) 30,000,000 shares of non¬
—

assessable

share).

common

Proceeds

stock.

—

For

Price—At
expenses

par

(one cent

incident

to

per

mining
South, Salt Lake City,
Utah.
Underwriter—Valley State Brokerage, Inc., Las
Vegas, Nev.
activities.

Office—214

East

5th

to

in

exchange for the assignment of their
Price

—

At

their

respective

par

Underwriters—

Farmer's Educational

and Co-Gperative Union of
Denver, Colo.
filed $2,300,000 of registered
debentures, series
A; $500,000 of registered savings debentures, series B;
and $i,zuo,000 ol registered
savings debentures, series
C. Price—At par (in units of
$100, $125 and $120, re¬
spectively). Proceeds
To be loaned to or invested in

Atr»o|ri'*a,

Nov.

23

—

Union

subsidiaries;

to retire outstanding indebtedness;
and to expand the Union's educational activities. Under¬
writer—None. Debentures to be sold by

salesmen, deal¬

and agents,

ers

of

the

Union,

and by officers, directors and employeesis often referred to as National

which

Farmers Union.

it Fanners Union Telephone Co.
1 (letter of
notification) 24,000 shares of

common:

stock. Price—At par ($10
per share). Proceeds—For ad¬
ditions and improvements, etc. Office—Cross
Plains, Wis.

Underwriter—None.
Fort

Pitt

Packaging International, Inc.

June 30 filed 300,000 shares of common stock
(par 100),
of which 250,000 shares of for account of
company and

59,000 shares of five selling stockholders.
share.

Proceeds—For

"Totosave"

Ray"

system;

infra-red

space

Price—$3 per
working capital; for exploitation
and for marketing of "Tropicheater.
Office
Pittsburgh, Pa.
—

Underwriter—Barrett Herrick & Co., Inc., New York.
Franklin

Railway Supply Co.
(letter of notification) 20,000 shares of common
(no par) to be offered for subscription by stock¬
holders.
Price—$10 per share.
Proceeds—To reduce
19

stock

20

stock.

issued

Proceeds—For working capital.
James E. McNelis and John J. Rhodes.

Oct.

assessable

mon

be

values.

of

Office—147 West Oak
Street, Fort

expenses.

Colo.

Delta

(50 cents

.unit.

per

80.

Dec.

(12/13)

by competitive bidding.
Co., Inc. and The First Boston
White, Weld & Co. and Shields & Co.

Corp.

$50

—

★ Farm & Home Loan & Discount Co.,
Fhoenix, Ariz.

dividends.

proposed

Price

debentures;
inventories; and to establish additional out¬
Office—Phoenix, Ariz. Underwriter—None. State¬

insurance

debentures, together with funds
investor, to be used in

stock.

increase

to

Proceeds—From sale of
with

Inc.

$80,000 of outstanding

Co.

be received from institutional

of

retire

also

to

Supply,

26
filed
$500,000 of 20-year, 7% sinking fund
debentures and 10,000 shares of capital stock
(par $1) to
be offered in units of $50 principal amount of deben¬

Insurance

connection

&

Oct.

debentures due

+ Continental

Casualty Co., Chicago, 111.
Nov. 25 (letter of
notification) 2,700 shares of capital
stock (par $5), to be offered for
subscription by em¬
ployees of this company, of Continental Assurance Co.

stock).

Sept. 28

unsecured

927

to

bank loans and for

working capital. Office—
St., Wilmington, Del. Underwriter—None,
Floyd Coffin and Herman F. Ball have agreed

Market

But C. W.

purchase all shares not subscribed for by stockholders.
Freedom Insurance Co.

—

it Continental Assurance Co., Chicago, III.
Nov. 25 (letter of notification)
1,650 shares of capital
stock (par $5) to be offered for
subscription by em¬
ployees of this company, of Continental Casualty Co.

of

Electronic

tures

Courts and
Public Works bonds due 1983.
Price—To be supplied
by amendment.
Proceeds — To Romenpower Electra
Construction Co.

shopping center in Lansing, Mich., from builder of
Underwriter—None, offering to be made through
Funds are to be held in escrow (if
not enough is received, funds will be returned to
pur¬

Proceeds—To

(Republic of)

21

to

Md.

Nov. 29 (letter of notification) an undetermined number

stock.

Consumers Cooperative Association

III.

working capital.

Probable bidders: Blyth &

notification) $299,000 of 6% deben¬
A, due Oct. 1, 1973 (with stock purchase
Price—At par (in denominations
of $500 and $1,000 each). Proceeds—For purpose of mak¬
ing loans and for' other general corporate purposes.
Office—904 Hospital St., Providence, R. I. Underwriters
attached).

Edgemont Shopping Center, Inc., Chicago,

Oct. 14 filed 6,000 shares of class A common stock. Price
—At par ($100 per share). Proceeds—To acquire title

warrants

(letter of

drilling for oil and
gas. Office—Colorado Bldg., Denver, Colo. Underwriter
—Philip Gordon & Co., Inc., New York.

Credit Finance Corp., La Grange, Ga.
Oct. 23 (letter of notification) 148,000 shares of common
stock (par $1). Price — $2 per share. Proceeds — For

tures, series

10

mon

—None.

Nov. 16 filed 50,000 shares of preferred stock
(par $100).
Proceeds—To repay bank loans and for new
construction.
Underwriter—To be determined

Consumer Acceptance Corp.

Nov.

Uranium Co.

Corpus Christi Refining Co.
Sept. 2 filed 500,000 shares of common stock (par 10
cents). Price—At the market. Proceeds—To a selling

and

Denver, Colo.

Thursday, December 8, 1955

.

Oct.

stockholder.

(letter of notification) 300,000 shares of class A
stock (par 25 cents) and 60,000 class warrants

&

.

Texas.

'

of

Oil

.

June 6 filed 1,000,000 shares of common stock

(par $10).

Price—$22 per share. Proceeds—For capital and surplus.
Business—All insurance
coverages, except, life, title and
mortgage.

Office—2054

University Avenue, Berkeley,
Wiser, President. Office—Berkeley,
Blair & Co. Incorporated, New
Offering—Indefinitely postponed.

Calif., c/o Ray
Calif.

B.

Underwriter

York.

—

Fremont Uranium Co.,

Aug. 1

Salt Lake City, Utah

(letter of notification)

15,000,000 shares of

com¬

stock.

Price—At par (one cent per share).
ceeds—For mining expenses. Office—515 Deseret
Salt Lake City, Utah. Underwriter — Moab
mon

Pro¬

Bldg.,

Brokerage
Co., Western States Investment Co., Potter Investment
Co., Mid-America Securities, Inc. of Utah, and CashinEmery, Inc., all of Salt Lake City, Utah.

it Frontier Assurance Co., Phoenix, Ariz.
Dec. 2 (letter of notification)
2,000 shares of class B
voting common stock (par $25), to be offered for sub¬
scription by holders of class A common stock. Price—
$36 50 per share. Proceeds
For capital and surplus.
—

Office—4143 N

19th

Ave., Phoenix, Ariz.

Underwriter—

None.

Gas Hills

Aug.
tal

1

Mining & Oil, Inc., Kemmerer, Wyo.
(letter of notification) 1,000,000 shares of capi¬
(par five cents). Price
25 cents per share.

stock

—

Proceeds—For oil and mining
expenses.

Underwriter—

Empire Securities Corp., Las Vegas, Nev.
1

General

Oct.

3

Capital Corp. (12/15)
(letter of notification) $300,000 of 10

debentures.

Price—At

$500, $1,000 and
commercial

Springs, Fla.

par

$5,000).

paper.

(in

denominations

Proceeds

Office—4309

Underwriter—None.

N.

—

W.

For
36st

year

of

8%

$100,

purchase of

St., Miami

Volume

•

Number 5488

182

The Commercial and Financial Chronicle

..

.

Georesearch, Inc. (12/20)

Nov. 25 filed 400,000 shares of common stock (par
$1).
Price—To be supplied by amendment. Proceeds—To re¬
tire

$400,000 of notes and forjjeneral corporate purposes.
Office—Shreveport and Jena, La. Underwriters—-Bedr/
Stearns & Co., New York, and
Keith, Reed & Co., Inc.,
Dallas, Texas.

★ Gera Corp.
Dec.

• Industrial Plywood Co., Inc. ,
30 (letter of notification)
100,000 shares of com¬
mon stock
(par 25 cents). Price—$3 per share. Proceeds
Nov.

rt/To liquidate loans and for general corporate purposes.
Business—Purchases and sells plywood and laminated

plastics.

Office

Underwriters
Blauner

1

(letter of notification) 478 shares of $6 voting
preferred stock to be sold at public sale through Old
Colony Trust Co., Boston, Mass. Price—At highest price
bid. Proceeds—To
Verney Corp., the selling stockholder.
Office—1740 Broadway, New York 19, N. Y.
Under¬
writer—None.

(2453)

&

—

Blanchard

Standard

St.,

Newark, N. J.
Corp. and Weill,

Securities

Co., Inc., both of New York.

Insulated
Nov.

168

—

Circuits, Inc., Belleville, N. J.

10 filed

100,000 shares of 6% cumulative convert¬
(par $5). Price—To be supplied by

ible preferred stock
amendment.

Proceeds—For general corporate purposes.
Underwriter—Alexander Watt & Co., Ltd., New York.

International Investors Inc., New York
Aug. 23 filed 200,000 shares of capital stock

,,

★ Great Basin Development Co.
Nov. 25

(letter of notification) 1,038,000 shares of

stock.

mon

Proceeds

—

Price

At

—

(five

par

cents per share).
Office — 21 South

For

West Temple
None.

com¬

development of oil.
St., Salt Lake City, Utah.

Underwriter—

ties

Phoenix,

Ariz.

dividend refund

optional
policy premium. Price
Proceeds—For working capital, etc.

of their

--$1.60 per share.
Underwriter
None.

annual

Some

—

the

of

stock

will

also

be

offered to public through Kenneth K.
Pound, President;

Lovelace, Secretary-Treasurer.

•

Guilford-Chester Water Co., Clinton, Conn.
10 (letter of notification) 8,507 shares of common
stock (no par) being offered for subscription
by stock¬
Nov.

holders of record Nov. 4

l-for-3

basis; rights to ex¬
pire on Dec. 12.
Price—$29.50 per share. Proceeds—To
reduce bank loans and for working capital.
DealerManager—Putnam & Co., Hartford, Conn.
on

a

Busineat

foreign securities of the free world out¬

side of the United States.

Underwriter—I. I. I. Securi¬

Corp., 76 Beaver St., New York, N. Y.

International Metals Corp. (12/19-22)
4 filed 400,000 shares of common stock

Gulf Coast Leaseholds, Inc., Houston, Texas
Sept. 14 filed $2,000,000 of 5% sinking fund convertible
debentures due Sept. 1, 1965 to be sold to Brandel Trust.
Price—$1,8215,000, plus accrued interest of $29,632. Pro¬
ceeds—To purchase certain working or leasehold
ests in oil and gas interests.
Underwriter—None.

inter¬

(par 10
cents). Price—$1 per share. Proceeds—To finance ex¬
ploration and development of mining properties of Recursos
Mineros Mexicanos, S. A., Mexican subsidiary,
and to discharge note. Office — Houston, Tex. Under¬
writer—Gearhart & Otis, Inc., New York.
International

Plastic

N.

Y.

Industries Corp.

Office

;

Israel

Industrial

&

&

Co., New York.

Z

'

Mineral

Development Corp.
Oct. 5 filed 200,000 shares of common stock (par $25)
Price—$27.50 per share. Proceeds—For general corpo¬
rate

purposes.

New

York, N.

"Isras"

Underwriter
Y.

Israel-Rassco

—

Israel

Securities

Investment

Sept. 28 filed 9,000 ordinary shares.

Co.,

Price—At

Corp.,

Ltd.

Aviv, Israel.

Underwriter

—

(100

par

Rassco Israel

Corp.,

New York.

Half Moon Uranium Corp.,
Ogden, Utah
Aug. 10 (letter of notification) 8,000,000 shares of capital
stock.
Price—At par (two cents per share).
Proceeds
—For mining expenses. Office—E-17
Army Way, Ogden,

Canyon Uranium & Gil Co.
^ T
(letter of notification) 3,000,000 shares of - non¬
assessable capital stock (par one cent). Price—10 cents
per share.
Proceeds—For expenses incident to mining
operations. Office — Simms Bldg., Albuquerque, N. M.
Underwriter—Mid-America Securities Inc. of Utah, Salt
6

Lake

City, Utah.

Maine

Fidelity Life Insurance Co. (12/12-16)
40,000 shares of capital stock (par $10).
Price—$25 per share. Proceeds—For general corporate
purposes.
Office — Portland, Me. Underwriter—P. W.
Nov.

10

filed

Co., Inc., New York.

-•

Manhattan Mercury Corp.,

Denver, Colo.
Oct. 26 (letter of notification) 1,500,000 shares of com¬
mon stock
(par one cent), of which 1,400,000 shares are
for account of company and 100,000 shares for certain
stockholders. Price—20 cents per share. Proceeds—For
mining expenses. Office—374 Denver Club Bldg., Den¬
ver, Colo. Underwriters—General Investing Corp., New
York; and Investment Service Co., Denver, Colo.
.

Mansfield
Nov.

4

Telephone Co., Mansfield, Ohio

(letter of notification) 6,000 shares of 5% pre¬
Price—At par ($50 per share). Proceeds

stock.

Office—35 Park Avenue East, Mansfield, Ohio.

program.

Underwriter—None.
Manufacturers

Cutter Corp.

Oct. 18

(letter of notification) 300,000 shares of class A
common stock. Price—At par ($1 per share). Proceeds—
To

loans, and for new equipment and working
Business—Cutting tools. Office—275 Jefferson

repay

capital.

St., Newark, N. J. Underwriter—Paul C. Ferguson & Co.,
same city.

Marl-Gro, Inc., San Francisco, Calif,
(letter of notification) 172,500 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For mining expenses and expenses incident to selling
Oct. 6

Israel pounds each, or about $55 in U. S. funds), payable
in State of Israel Independence Issue Bonds only. Office
—Tel

Lost

Oct.

—To reduce short term indebtedness and for construction

.

369-375 DeKalb Ave., Brooklyn 5,

—

Underwriter—Kamen

Lake

ferred

Oct. 12 (letter of notification) 150,000 shares of common
stock (par 10 cents).
Price—$2 per share. Proceeds—
For advances to Arliss Co., Inc. for purchase of equip¬

ment, etc.

mining expenses. Office—440 West 3rd North, Salt
City, Utah. Underwriter—Skyline Securities, Inc.,
Denver, Colo.
^

—For

Brooks &

(par

Proceeds—For investment.

Oct.

Oct. 26 filed 700,000 shares of
capital stock (par $1), to
be offered to present and future holders of
policies
issued by National Reserve Insurance Co. as an

Law L.

—To invest in

•

Great Southwest Fire Insurance
Co.,

and

Price—At market.

41

soil

a

Market

Office—681

conditioner.

St.,

San

Fran¬

Underwriter—Globe Securities Corp., New

cisco, Calif.
York.

*

Utah.

Underwriter—United

Intermountain

Brokerage

Corp., Ogden, Utah.
Helio

Nov.

3

Price—$5

and

share.

per

engineering

Proceeds—For

Office

expenses.

—

administra¬

Metropolitan

Underwriter—

tAt Holan (J. H.) Corp., Cleveland, Ohio
Dec. 2 (letter of notification) 150.05 shares of common
stock (par $1).
Price—At market (estimated at about
$15 per share). Proceeds—To common stockholders in
of

fractional

Ohio.

Office

shares

in

4100

—

connection

West

150th

with

5%

stock

St., Cleveland

11,

Underwriter—None.

Acceptance Corp., Salt Lake City, Utah
(letter of notification) $300,000 of 25-year 6%

1

junior subordinated debentures due Oct. 1, 1980. Price—
At par (in denominations of $1,000, $500 and $100). Pro¬
ceeds—For

working capital. Office—837 South Maine
St., Salt Lake City, Utah. Underwriter—Edward L. Bur¬
ton & Co., same city.
tiousaionic

Public

Service

Co.

Sept. 13 (letter of notification) 12,774 shares of common
stock (par $15),'being offered for subscription by com¬
mon

stockholders

new

share for each 29

Dec. 12, 1955.

of

7

the

on

basis

of

one

shares

Price—$21

struction expenditures.
Conn.

Nov.

record

per

held; rights to expire on
share. Proceeds—For con¬

Office—33 Elizabeth St., Derby,

Underwriter—None.

Hunt Uranium Corp., Green River, Utah
Aug. 22 (letter of notification) 1.200,000 shares of com¬
mon
stock.
Price—At par (25 cents per share).
Pro¬
ceeds—For expenses incident to mining activities.
Un¬

Elmer

derwriter

—

Salt Lake

City, Utah.

K.

Aagaard,

323

Price—At

stock.

working capital,

Newhouse

Bldg..

-

Hydro-Loc, Inc., Seattle, Wash.
Oct. 25 (letter of notification) 1,674
($100

par

per

-

shares

share).

of

capital

Proceeds—For

etc. Office—603

Central Bldg., Seattle
4, Wash. Underwriter—Pacific Brokerage Co. of Seattle,
Wash.

Indian

Monument Uranium Mining Corp.
(letter of notification) 3,000,000 shares of

Sept. 6

stock

Proceeds

(par

Office—205

expenses

Byington Building, Reno, Nev. Underwriter

•—Richard L.

Dineley,

same

address.

Industria

Electrica de Mexico, S. A.
(Electrical
Industry of Mexico, Inc.)
Nov. 7 filed
157,632 American shares representing a
like amount of common shares (par 100 pesos-Mexican
currency—U. S. $8 per share) being offered for subscrip¬
tion by common stockholders at the rate of one new
share

rights
shares

for

to

each

common

expire

were

on

first

share

Dec.

held

13.' Each

exchanged

for

of

record

five

four

Nov.

28;

old

American

new

American

shares 1955 pursuant to a plan of reorganization effective
Nov. 21. Price—At par.
purposes.

Underwriter

Mexican corporation

Proceeds—For general corporate
National Financiera, S. A., a

—

controlled by the Mexican Govern¬

ment, has agreed to purchase all of the additional
common

stock

not

subscribed




for.

Price—10 centi
incident to mining

Montezuma

St., Cortez,

Bay Securities Corp., New York

—

Co.

Nov. 10 filed 75,000 shares of capital stock (par 25 cents).
Price—To be supplied by amendment. Proceeds—To re¬

tire

outstanding mortgage indebtedness and bank loan;
construction program;

other

Pa.

and for working capital and

Office — Boyertown,
Loeb, Rhoades & Co., New
Offering—Expected today (Dec. 8).

general

corporate

Underwriter—Carl

York.

Kayser

(Julius)

&

purposes.

M.

Co.,

New York

Oct. 24 filed 130,000 shares of common stock (par $5)
being offered for subscription by common stockholders
five shares

on

the basis of

Oct. 27

held; rights to expire

one

new

share for each

Dec. 14. Price—$20
per share.
Proceeds—For general corporate purposes.
Business—Manufactures wearing apparel. Underwriter—
None.
Any unsubscribed shares will be taken up by
certain officers, directors and insurance companies.
Kendon

Electronics

Co.,

on

Lander Valley Uranium & Oil Corp.
Aug. 15' (letter of notification) 3,000,000 shares of com¬

Price—10 cents per share.
Proceeds—For expenses incident to mining
activities
Office—c/o Warren E. Morgan, President, 1705 East First
South, Salt Lake City, Utah. Underwriter—Empire Se¬
curities Corp., Las Vegas, Nev.
•

(par two cents).

Oil Corp.,

Jefferson, Texas (12/15)
shares of capital stock (par 10
cents).
Price — Around $9 per share.
Proceeds —For
payment of liabilities and expenses incident to oil and
gas and mineral activities.
Underwriters—Eastman, Dil¬
lon & Co., New York; and First California Co., Inc., San
Francisco, Calif.
LeCuno

Aug.

29

Lite

new

Price — 62cents per share.
incident to mining activities.
Underwriter—Standard Securities Corp., Spokane, Wash.
(par

filed

450,000

Underwriters Insurance Co.,

Shreveport, La.

Sept. 26 filed 100,000 shares of common stock (par 25
cents) to be offered for subscription by present stock¬

basis of one new
rights to expire 45 days
from the commencement of the offering, after which
unsold shares will be offered to public. Price—$8.75 per
share for each four shares held;

share to stockholders; $10 per share to public. Proceeds
—For expansion and working capital.
Underwriter—

•

Refractories

Mexico

filed

19

price_$3

Underwriter—None.

purposes.

106,962 shares of common stock (par $2)'
being offered for subscription by common stockholders
of

record

Nov.

each 10 shares

Little

Mac

Uranium

Co.

Sept. 12 (letter of notification) 3,000,000 shares of capi¬
tal stock.

Price—At par

(10 cents per share).

Proceeds

29

the

on

basis

of

one

new

share

for

Price—
$20 per share. Proceeds—For expansion; purchase of
machinery and equipment; and for working capital.
held; rights to expire on Dec. 12,

Underwriter—The First Boston

Corp., New York.

Electronic Corp., Miami, Fla.
Nov. 25 (letter of notification) 46,000 shares of common
stock. Price — At par ($1 per share). Proceeds — For
general corporate purposes. Underwriter—None.
• Milgo

Mobile

& Oil

Uranium

Co., Salt Lake City,

Utah

Aug. 22 (letter of notification) 5,500,000 shares of non¬
assessable capital stock (par one cent).
Price — Five
cents

share. Proceeds — For expenses incident to
activities. Office—605 Judge Bldg., Salt Lake

per

mining

Underwriter—Skyline Securities, Inc., Den¬

City, Utah.
ver,

Colo.

Mohawk

Silica

Co., Cincinnati,

Ohio

(letter of notification) 3,000 shares of 8% cumu¬
lative preferred stock. Price — At par ($50 per share).
Oct. 3

Proceeds—For

processing plant, heavy equipment,

and
Office—2508 Auburn Ave., Cincinnati,
W. E. Hutton & Co., Cincinnati,

working capital.

Underwriter

Ohio.

—

Ohio.
Mt.
Nov.

Vernon

16

same

Mining &

Development Co.

(letter of notification) 3Qp,000 shares of com¬
Price—At par ($1 per\ share).
Proceeds—
exoenses.

Office—422

Continental

Bank

Lake' City, Utah. Underwriter'— Ackerson-

Investment

Hackett

Co.,

701

Continental

Bank

Bldg.,

city.

National

Underwriter—Sellers, Doe & Bonham Co., same city.

Inc., Cleveland, Ohio
Oct. 17 filed 600,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—For exploration
and development costs, etc. Underwriter—George Searight, New York City.

Ind.

Laboratories, Inc., Elkhart,

9 filed

Nov,

working capital. Office—408 Marion Bldg., Augusta, Ga.

Developments,

Elgin, III.

500,000 shares of common stock (par $1).
per share.
Proceeds—For general corporate

mining

For

of
v

10 filed

For

—

consummation

upon

Mid-Union Indemnity Co.,
Nov.

Bldg., Salt

$44 per share. Proceeds

stock

National

outstanding
exchange.

tAt Lincoln Life Insurance Co. of Georgia
Nov. 29 (letter of notification) 6,800 shares of common
—

57,776

of

None.

(par $5). Price

Mo.

Mexico,

Co.,

shares of common stock (par $5)
being offered to stockholders of National Refractories
Co., a subsidiary, in exchange for 57,776 shares of capital
stock (par $5) of National on a share-for-share basis,offer to remain open for 60 days from Nov. 17, 1955.
Offer is conditioned upon Mexico owning at least 80%
Oct.

stock.

Lithium

expenses

Metro, Inc., Baltimore, Md.
30 (letter of notification) 5,000 shares of common
stock (par $1). Price—$10 per share. Proceeds—To Kail
R. Kahn, President of the company.
Office — 808 E.
Fayette St., Baltimore, Md. Underwriter—Auchincloss,
Parker & Redpath, Washington, D. C.

mon

stock

cents).

35

Proceeds —For

Miles

(letter of notification)

stock

stock

Inc.

60,000 shares of common
stock (par 10 cents). Price—40 cents per share. Proceeds
—To Nicholas J. Papadakos, the selling stockholder. Of¬
fice—129 Pierrepont St., Brooklyn, N. Y. Underwriter—
20th Century Pioneer. Securities Co., New York.

mon

Inc.

Mines,

Aug. 1 (letter of notification) 300,000 shares of common

Nov.

Chemical

holders of record July 21, 1955 on the

com¬

cent). Priee—10 cents per share.
incident to mining activities.

one

For

—

expenses

West

326

—

Underwriter

of record Nov. 25

Home

Sept.

Office

Kawecki

for

dividend.

Proceeds—For

activities.

Mascot
non¬

stock (par one cent).

common

share.

per

common

None.

mon

assessable

New York.

24,000 shares of

Airport, Canton (Norwood P. O.), Mass.

lieu

Minerals, Inc., Cortez, Colo.
Aug. 26 (letter of notification) 2,855,000 shares of

Colo.

Corp., Canton, Mass.

(letter of notification)

stock.
tive

Aircraft

Jurassic

Mercury Corp., Denver,

Colo.

notification) 750,000 shares of common
cent). Price—40 cents per share. Proceeds

Oct. 24 (letter of
stock (par one
—

For

•

— 414 Colorado Bldg.,
Underwriter—Shaiman & Co., same city.

mining expenses. Office

Denver, Colo.

Co. (12/12-16)
class A common stock
and 50,000 shares of class B common stock

National Old Line Insurance

Nov

15

(par

$2)

filed

50,000

shares of

Continued

on

page

42

42

The Commercial and Financial Chronicle

(2454)

Continued jrom page
\

41

'■

'

amendment.

Price—To be supplied by

(par $2).

Pro¬

Office — Little Rock,
Ark.
Underwriter—Equitable Securities Corp., - Nash¬
ville, Tenri., and New York, N. Y.
ceeds

To selling stockholders.

—

(12/13)
convertible second pre¬
ferred stock (par $25) and 100,000 shares of common
stock (par $1).
Price—To be supplied by amendment.
Proceeds—Together with funds from private sale of
$4,950,000 of 4%% 15-year notes, to be used to pay for
bottled gas business of Shell Oil Co. in the Middle West.
Office—New Hyde Park, L. I., N. Y.
UnderwritersCarl M. Loeb, Rhoades & Co. and Union Securities Corp.,
National

Nov.

Propane Corp.

filed

18

140,000 shares of

mining activities. Office
Salt Lake City, Utah. Underwriter—

working capital and

—419 Judge Bldg.,

Utah.

Paria

& Oil

Corp.
Oct. 17 (letter of notification) 3,000,000 shares of com¬
mon
stock (par five cents). Price—10 cents per share.
Proceeds
For mining expenses.
Office — Newhouse
—

Bldg., Salt Lake
States Investment

3

City, Utah. Underwriter
Co., Tulsa, Okla.

Precision Products, Inc.,

Penn

Nov.

notification)

(letter of

share, and 1,857 shares to non-stockholders who are resi¬
dents of Pennsylvania at $14 per share. Proceeds—For
purchase of mill.
Pa.

Okla.

Office—206 N. Virginia Street, Reno, Nev.

Winnemucca, Nev.

derwriter—Shelley, Roberts & Co., Denver, Colo.
New Jersey Bell

1, 1995.
Proceeds—To repay advances from American
Telephone & Telegraph Co., its parent, and for general
corporate purposes.
Underwriter—To be determined by

Probable bidders:
Halsey, Stuart
& Co. Inc.; Morgan Stanley & Co.; The First Boston
Corp.; Shields & Co.; Kuhn, Loeb & Co.; White, Weld
& Co.
Bids—To be received up to 11 a.m. (EST) on

competitive bidding.

2315, 195 Broadway, New York, N. Y.

Uranium, Inc., Reno, Nev.
(letter of notification) 2,000,000 shares of com¬
mon stock (par three cents).
Price—15 cents per share.
Proceeds—For expenses incident to mining activities.

it Pillsbury Mills, Inc., Minneapolis, Minn.

Public Service Inc. (1/11)
of cumulative preferred stock
(par $100). Proceeds—For construction program. Under¬
writer
To
be determined
by competitive bidding.
Probable
bidders:
W.
C.
Langley
&
Co.;
Lehman

(letter of notification) 6,000 shares of common
(par $25) to be offered to employees pursuant to
the company's Stock Purchase Plan.
Price—At market

—

Brothers; Merrill Lynch, Pierce, Fenner & Beane; White,
&
Co.; Kidder, Peabody & Co. and Stone &
Webster Securities Corp.
(jointly); The First Boston
Weld

Corp.; Equitable Securities Corp. and Union Securities
Corp. (jointly); Blair & Co. Incorporated.
Bids—Ex¬
pected on Jan. 11.
North Shore Gas Co.,

Salem, Mass.
Nov. 10 (letter of notification) 1,289 shares of common
stock (par $10) being offered for subscription by minor¬
ity stockholders at rate of one new share for each five
shares held as of Nov. 28; rights to expire on Dec. 19.
Price—$14 per share. Proceeds—To repay advances from
New England Electric System, the parent. Underwriter
—None.

Norwood

Uranium, Inc., Norwood, Colo.

(letter of notification) 6,000,000 shares of com¬
stock (par one cent). Price—Five cents per share.

Proceeds—For mining expenses. Underwriter—Columbia
Securities

Co., Denver, Colo.

Nu-Petro
Nov.

14

cents).,

Dallas, Texas

Corp.,

filed 4,000,000 shares of common stock (par 25
Price—30 cents per share. Proceeds—For pur¬

Pipelife Corp., Tulsa, Okla.
29 filed 115,000 shares of common stock (par $1).
Price—$4 per share. Proceeds—To pay current accounts
and notes payable; for research and development; and
general corporate purposes.
Underwriter — North
American Securities Co., Tulsa, Okla.
Pittman

property interests in both oil
and gas and nuclear situations. Underwriter—None; but
offering will be made through licensed dealers.
Jack
Frost of Dallas is Chairman of the Board and J. Cullen

Oak Mineral

& Oil Corp., Farmington, N. M.
notification) 2,000,000 shares of common
stock (par five cents). Price—15 cents per share.
Pro¬
ceeds—For exploration and development and other gen¬
Nov. 8 (letter of

•

Underwriter—Philip Gordon &

New York.

Empire, Inc. (12/15)
Oct. 31 (letter of notification) 300,000 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—Tc
retire $17,800 of outstanding preferred stock; for equip¬
ment, inventory and working capital. Business—Chem¬
ical specialties. Office—865 Mt. Prospect Ave.,
Newark,
Underwriter—Vickers Brothers, New York.

Olive-Myers Spalti Mfg. Co., Dallas, Texas
Oct.

24

share of

at

preferred stock for each 2,597 shares of com¬
The subscription warrants will
expire
p.m. (CST) on the 14th day following the ef¬

stock held.

3:30

fective

date

of

the

stockholders, $9.50

registration

statement.

share; to public $10

per

share.
Business—Manufac¬

Rupe &

Son, Inc., Dallas, Texas.

•

to

develop
Aaron

c/o

N.

Y.

stock

and
W.

market

Price—At
dental

a

par.

tooth

stick.

Office—

Underwriter—None.

Aug. 16

Getter

Inc., Las Vegas, Nev.
notification) 3,000 shares of capital

of

Price—At

($100

par

per

South 5th St., Las Vegas, Nev.

share).

Proceeds—For

Underwriter—Hennon &

Roberts, Las Vegas, Nev.
Pacific

International

stock.

Price—At




i

par

offered in units of

unit.

Proceeds—For

Pittsburgh Coke & Chemical Co. (12/13)
filed 160,000 shares of common stock (no par).

Price—To

be

related

to

current market

the

time

at

of

offering. Proceeds — For general corporate purposes.
Underwriter—Hemphill, Noyes & Co., New York.
Porto Rico

Nov.

7 filed

Telephone Co.

100,000 shares of common stock

Nov. 28 at the rate of one new share for each four shares

held; rights to expire on Dec. 13. The International
Telephone & Telegraph Co., the holder of 399,495 shares
(99.87%) of the outstanding stock has waived its pre¬
emptive rights to purchase 99,866 of the new shares.
Price—$21.45 per share to stockholders; $22.75 to public.
Proceeds
For construction program. Underwriter —
Merrill

Lynch, Pierce, Fenner & Beane, New York.

Professional Casualty Co.,

Champaign, III.
(par $4).
Price—$10 per share.
Proceeds—For working capital,
etc.
Underwriter—Professional
Casualty Agdncy
Co.,
Nov.

filed

25

250,000 shares of common stock

Champaign, 111. John Alan Appleman of Urbana, 111., is
President of the company.

developed as a new subdivision in Richmond, Ind., an
working capital. Office—Richmond, Ind. Underwrite
& Co., Chicago, 111.
Offering—Expecte

for

—Cruttenden

day.

any

Nov.

&

Uranium,

Inc.

(one cent

per

share).

com¬

Pro¬

200,000 shares of common

filed

4

•

stock (no par

being offered for subscription by common stockholder
on the basis of one new share for each seven shares hel
Nov.

on

shares

rights to expire on Dec. 12; unsubscribe
offered to employees up to and includin

25;
be

to

Dec. 9. Price—$40.50 per

share. Proceeds—to repay ban
Underwriters—Th

loans and for construction program.

York.

Rogers Corp., Rogers, Conn.
Oct. 3 (letter of notification) a minimum of 5,883 share
and a maximum of 7,453 shares of class B commo
stock to be offered to stockholders on a basis of on
share for each four shares held. Price—($29 per share)
Proceeds—To

Prudential

Loan

Corp., Washington,

D. C.

111,000 shares of 44-cent cumulative prior
preferred stock (par $5) and 55,500 shares of 10-cent par
stock

offered

be

to

in

units

of

one

share

of

preferred stock and one-half share of common stock.
Price—$6.75 per unit. Proceeds—For general corporate
purposes.

Underwriter

replenish

sustained in recent flood.

Juan

San

working

capital

due

Underwriter—None

Racing Association,

to

losse

.

Inc., Puerto Rico

Sept. 27 filed 4,000,000 shares of common stock

(par 5

cents), of which 3,800,000 will be represented by 3,000,00
voting trust certificates and 800,000 warrants. These of
ferings are to be made in two parts: (1) an offering, a
50 cents per share, of 200,000 shares for subscription b
stockholders of record April 30, 1955, on a two-for-on
basis; and (2) a public offering of 3,000,000 shares, to b
represented by voting trust certificates, at 58.8235 cen

Proceeds—For racing plant construction. Un
Hyman N. Glickstein, of New Yor

share.

per

derwriter—None.

City, is Vice-President.
San Juan Uranium

Aug.

19

(letter

assessable

Exploration, Inc.

of notification) 925,000 shares of non
stock (par one cent). Price—12 cent

common

Proceeds—For expenses incident to minin
718 Kittredge Bldg., Denver, Colo
Underwriter—Shelley-Roberts & Co., Denver, Colo.
share.

per

activities.

Office

—

Sandia Mining &

Development Corp.
3,000,000 shares of capit
stock (par one cent).
Price—10 cents per share. Pro
ceeds
For mining expenses. Office — Simms Bldg.
Albuquerque, N. M. Underwriter—Mid-America Secu
rities, Inc. of Utah, Salt Lake City, Utah.
Sept 9 (letter of notification)
—

Souci

Sans

Hotel, Inc., Las Vegas, Nev.

1,428,000 shares of common stock (of whic

Nov. 9 filed

1,097,529 shares are to be offered for subscription b
stockholders at rate of 1% shares for each share held o
record

Dec.

(with rights to expire on Dec. 31)

1955

1,

to be issued in payment for claims o
individuals and firms aggregating $30,471; an

30,471 shares
seven

are

shares are to be offered by George E. Mitzel,
of company).
Price—$1 per share. Proceed
—For construction of new facilities; to pay off notes; and
300,000

Straus, Blosser & McDowell,

—

Chicago, 111.

for working

Underwriter—None.

capital.

Sayre & Fisher

Brick Co., Sayreville, N. J.

325,000 shares of capital stock (par $1).
Price—To be supplied by amendment. Proceeds — For
Sept. 30 filed

due
including

prepayment of outstanding 5%% sinking fund bonds

1970; balance for general corporate purposes,

working capital. Under¬
Herrick & Co., Inc., New York City..

additions and improvements and

Puerto Rican Jai

Alai, Inc.

writer—Barrett

Nov. 3 filed

1,250,000 shares of common stock (par one
Price—$1.50 per share. Proceeds—To purchase

property and for construction of sports stadium, etc.
Business—Playing of jai alai, with pari-mutuel betting.
Office—San Juan, Puerto Rico. Underwriter—F. H.
rie & Co., Inc., New York. Offering—Expected any

Creday.

Quebec Hydro-Electric Commission (12/14)
of 25-year debentures, due Jan.

Nov. 25 filed $50,000,000

Press

Science

of

New Jersey,

Inc.

of common
par).
Price—$5 per share.
Proceeds—For
building, equipment, working capital, etc. Office—Spur
Route 518, a mile west of the Borough of Hopewell,
County of Mercer, N. J.
Underwriter—Louis R. Dreyling & Co., Jamesburg, N. J.

Nov.

10

stock

(letter of notification) 15,620 shares

(no

1, 1981 (to be guaranteed unconditionally as to principal
Province of Quebec, Canada. Price—

it Scott Faper Co., Chester, Pa.
Dec. 7 filed 10,400 memberships in the company's Em¬

To be supplied by

ployees' Stock Purchase Plan for 1956, together with
48,262 shares of common sock (no par) which may be
purchased and distributed under the plan.

amendment. Proceeds—To repay $8,-

000,000 in bank advances and
struction

program

for

the

to

finance, in part,

period

September,

con¬

1955

through the year 1962. Underwriters—The First Boston
Corp. and A. E. Ames & Co. Inc., both of New York.
Real

Estate Clearing

House, Inc.

(letter of notification) 270,000 shares of 7%
cumulative preferred stock (par $1) and 135,000 shares

Sept.
of
of

14

common

two

stock

shares

of

(par five cents) to be offered in units
preferred and one share of common

unit. Proceeds—For working
capital, etc. Office—161 West 54th Street, New York,
N. Y.
Underwriter—Choice Securities Corp., 35 East
12th Street, New York, N. Y.
Price—$2.05

per

Republic Benefit Insurance Co., Tucson, Ariz.
Sept. 30 filed 150,000 units in a dividend trust and stock
procurement agreement to be offered to certain mem¬
bers of the general public who are acceptable applicants
and who

to become active

policyholders in the com¬
general cor¬
porate purposes. Underwriter—None; to be offered by
Leo Rich, Robert Kissel and Sidney M. Gilberg, as Trus¬

pany.

are

Price—$2

per

unit.

Proceeds—For

Reynolds Mining & Development Corp.
Nov. 22 filed 1,500,000 shares of common stock
(par
one
cent). Price—50 cents per share.
Proceeds—For

Corp. of America
$15,000,000 of 6V2% cumulative income sub¬
debentures due Nov. 1, 1980 to be offered

Sheraton
Oct. 31 filed

ordinated

initially by the company (a) to its stockholders on the
basis of $100 principal amount of debentures for each
25 shares of stock then held and
(b) to employees of
corporation and its subsidiaries. Price—$95 per $100 of
debentures to stockholders; and at par to public. Proceeds
general corporate purposes. Office—Boston. Mass.
Underwriter—None,! but Sheraton Securities Corp., a

—For

subsidiary, will handle stock

sales.

Shumway's Broken Arrow Uranium,

Inc.

(letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For mining expenses. Office—Moab, Utah. Underwriter
—Ackerson-Hackett
Investment Co., Salt Lake City,
Nov.

7

Utah.
•

Southwestern

Nov.
Price

Metals

.

Electric Corp.

&

Gas

President

Nov. 22 filed

•

company

(par $20),

being offered for subscription by stockholders of record

tees.

Aug. 12 (letter of notification) 12,000,000 shares of
mon

the

Proceeds—

Lewin, 130 East 59th St., New York 22,

Ottilia Villa,
stock.

(par $1).

(par $1)
to be sold for the account o
and 60,000 shares for the account of tw
selling stockholders. Price—$5 per share. Proceeds
To repay a mortgage note, for the organization- of *
wholly-owned acceptance corporation to be used fo
financing purposes, for plant additions and the purchas
of additional equipment, for the purchase of land, to b

of which 80,000 shares are

Nov. 22

stock.

• Oro Products, Inc.
Nov. 23 (letter of notification) 480 shares of
5% noncumulative preferred stock (par $100) and 960 shares
common

per

payment of note and working capital. Office—420 Citi¬
zens National
Bank Bldg., Independence, Kan. Under¬
writer—Dewitt Investment Co., Wilmington, Del.

Price—To
per

Proceeds—For expansion program.
tures household furniture. Underwriter—Dallas

of

Price—$5

each.

of

and interest by the

filed

100,009 shares of 55-cent cumulative con¬
vertible preferred stock (par $6.25) to be offered for
subscription by common stockholders on basis of one
mon

share

cent).

Old

N. J.

Independence, Kan.

stock (par 10 cents) to be

common

common

Looney of Edinburg, Texas, is President.

Co.,

Drilling & Oil Co.,

Sept. 6 (letter of notification) 60,000 shares of 6% nonpreferred stock (par $5) and 60,000 shares

cumulative

chase of investments and

eral corporate purposes.

for employee's

—

Oct. 21
mon

date of purchase by company

on

Nov.

one

140,000 shares of common stock

filed

25

Oct.

First Boston Corp., New

stock

of

'

Inc.

Homes,

23

Nov.

ir New Orleans

;

Richmond

Rochester

Penn-Utah

Dec. 2 filed 60,000 shares

•

501 Crescent Ave., Reading,

account.

$25,000,000 of 40-year debentures due Dec.

Dec. 14 at Room

—

Aug. 4

price

(12/14)

Telephone Co.

Office

•

Underwriter—None.

Underwriter
—Philip Gordon & Co., Inc., New York, N. Y.

Sept. 16 (letter of notification) 1,500,000 shares of com¬
mon
stock (par one cent).
Price—20 cents per share.
Proceeds—For expenses incident to mining activities.
Office—Professional Building, Winnemucca, Nev.
Un¬

Nov. 18 filed

of common

(no par), of which 2,000 shares are to be offered
subscription by existing stockholders at $12 per

America, Moab, Utah
Sept. 7 (letter of notification) 300,000 shares of non¬
assessable common stock (par one cent). Price—$1 per
share. Proceeds—For expenses incident to mining ac¬
tivities. Underwriter—Western Bond & Share Co., Tulsa,
Nevada Mercury Corp.,

Western

Reading, Pa.

3,857 shares

both of New York.
Natural Power Corp. of

—

stock
for

4

D. C.

Co., Salt Lake City, Utah.

Uranium

Thursday, December 8, 195

mining expenses. Office — Moab
Underwriter—The Matthew Corp. of Washington

ceeds—For expenses incident to

Guss Securities

/.-.

30
—

finance,

filed

To be

in

States

Telephone Co.

(12/15)

(par $1).
— To
Office —- San
Central Republic Co.,

100,000 shares of common stock

supplied by amendment. Proceeds

part,

Francisco, Calif.
Inc., Chicago, 111.

construction
Underwriter

program.
—

Volume

182

Number

5488

.

.

The Commercial and Financial Chronicle

.

(2455)
'

Southern Mining & Milling

Sept. 14

Co., Atlanta, Ga.

(letter of notification)

300,000 shares of

by that company of a new building which is to be leased
by Tracerlab, Inc.; and for working capital for use for
general corporate purposes.
Underwriters—Lee Higgin-

com¬

stock

mon

(par 10 cents). Price—$1 per share. Proceeds
expenses incident to mining activities.
Offices—
Healey Building, Atlanta Ga., and 4116 No. 15th Avenue,
Phoenix, Ariz. Underwriter — Franklin Securities Co.,
Atlanta, Ga.
—For

Corp. and Harriman Ripley & Co. Inc., both of New
York, and Estabrook & Co., Boston and New York.

son

Trans-American Development
Corp.
Nov. 14 (letter of notification
45,000 shares of 8% cumu¬
lative preferred stock
(par $1) and 45,000 shares of
class A common stock
(par $1) to be offered in units

it Spiegel, Inc., Chicago, III.
Nov.

30

filed

shares of common stock, issuable
Restricted Stock Option Plan for offi¬
executives.
60,500

under company's
and

cers

key

of

share of each class of stock.

one

Price—$1
working capital. Office—5225
Blvd., Los Angeles, Calif. Underwriter—None.
Proceeds—For

Spurr Mining Corp.

per

unit.

ton, D. C.

700 shares of

Strouse, Inc., Norristown, Pa.
Nov, 10 (letter of notification) 60,000 shares of

In

stpck (par 10 cents).

common

Proceeds—
working capital. Office — Maine and Astor Sts.,
Norristown, Pa. Underwriter—H. A. Riecke & Co., Inc.,
Philadelphia, Pa.
Sturm

20,000 shares of

Sept. 14

Price—$1 per share.
Proceeds—To pay notes
payable, premiums due insurance companies, etc. Busi¬
insurance

Office—21

agency.

cumulative

preferred stock to
by common stockholders

tion

ferred
par

share

($2

per

eration

of

for

be
on

each 'common

share).

offered for
the basis of

share

held.

extraction

plant.

which

pre¬

Underwriter—To

307

alt
e.,

Lake

City, Utah.

Target Uranium Co., Spokane, Wash.

For

mining expenses.
Office — 726'
aulsen Bldg., Spokane, Wash.
Underwriter — Percy
ale Lanphere, Empire State Bldg.. Spokane, Wash.
—

it Telephone Utilities, Inc., Ilwaco, Was!],
ec.
1
(letter of notification) 5,000 shares of class B
on-voting

stock

(par $10) and 10,000 shares
f 6% cumulative preferred stock
(par $25). Price—
t par.
Proceeds — For purchase of common stock of
sland Empire Telephone & Telegraph Co. and to acquire
tock

common

additional

cf

telephone

companies.

Underwriter

None.
•

Texas
ov.

3

American

(letter

of

Oil Corp.
notification) 600,000

shares

'i

of/com-

tral Bldg., Midland, Tex.

Underwriter—Kramer, Woods

Co., Inc., Houston, Tex.
Texas

Canyon Oil Co., Austin, Texas
notification) 100,000 shares of common
tock (par 10 cents).
Price—$1 per share. Proceeds—
or mining expenses.
Office—906 Capital National pank
ldg., Austin, Tex. Underwriter—None.
I1
ov.

•

25 (letter of

Texas

Eastern

Tov.

30

tock

(par $100).

filed

Transmission

200,000

shares

of

Corp.

(12/15)

|

cumulative

preferred
Price—To be supplied by amendment,
roceeds—Toward redemption of presently outstanding
90,000 shares of 5.50% first preferred stock. Untferriter—Dillon, Read & Co. Inc., New York.
i
Thatcher
ec.

tock

Glass

Manufacturing Co., Inc.
7
(letter of notification) 1,000 shares of comfnon

1

(par $5)

to be offered to employees.
Frice-3-At
Proceeds—None, shares having been purchased
company at $16.25 per share.
Underwriter—None.

arket.
y

Tracerlab, Inc., Boston, Mass. (12/13)
ov.
18 filed $1,500,000 of 5% convertible
debentures,
ue Nov. 1, 1970.
Price—To be supplied by amendment,
roceeds—To repay bank debt of Keleket
X-Ray Co^p.,
subsidiary; for advances to or for account of TraceiTab
evelopment Corp. in connection with the construction




»

of 5% convertible preferred
stock, 1955 series (par $30), being offered for subscrip¬
tion by common stockholders on the basis of one pre¬
ferred share for each 20 shares of common stock held
to expire about Dec. 14.
Price—
Proceeds—For exploration and develop¬
ment programs.
Office—Houston, Tex. Underwriter—•
White, Weld & Co., New York.
Nov.

on

$30

share

rights

30;

share.

per

Wonder Mountain

Uranium, Inc., Denver, Colo.

Aug. 12 (letter of notification) 2,380,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds
For expenses incident to mining activities.
—

Denver

Nat'l

Under¬

Bldg., Denver, Colo.

writer—Floyd Koster & Co., Denver, Colo.
Woods

Oil

&

Gas

Co., New Orleans, La.

Aug. 29 filed 250,000 shares of common stock (par $5).
Price—$8 per share. Proceeds—For retirement of debt;
revision
of
corporate structure,
etc. Underwriter —
Straus, Blosser & McDowell, Chicago, 111. Offering—To
be withdrawn.

Woodstock Uranium Corp., Carson

City, Nev.

(letter of notification) 3,000,000 shares of com¬
stock. Price—At par (10 cents per share). Proceeds

Nov. 21
mon

mining expenses. Office—Virginia Truckee Bldg.,
City, Nev. Underwriter—Cayias, Larson, Glaser,
Emery, Inc., Salt Lake City, Utah.

—For

Carson

City, Mo.

Corp. of America

Wycotah Oil & Uranium, Inc., Denver, Colo.
1,500,125 shares of common stock (par one
cent) to be offered only to the owners of percentages of
working interests in certain oil and gas leases and to the
owners of certain uranium properties, and in exchange
for such working interests and properties. Price—Shares
to be valued at an arbitrary price of $4 per share. Pro¬
ceeds—To acquire properties. Underwriter—None.
Nov. TO filed

Wyoming-Gulf Sulphur Corp.
10 filed 971,000 shares of capital stock
(par 10
cents), of which 700,000 shares are for company's ac¬
count and 271,000 shares for account of two selling
Oct.

Price—On the over-the-counter market at

stockholders.
then

prevailing price, but not less than $2 per share.
Proceeds—For auxiliary equipment for Cody plant, for

Sept. 29 filed 254,000 shares of common stock (par $1).
Price—At the market. Proceeds—To August Buschmann,

it Union Sand & Supply Corp., Painesville, Ohio
(letter of notification) 6,418 shares of 5% cumula-

writer—None.

Dec. 2

tive convertible preferred stock.

share).

Proceeds

—

For

acquisition .of additional site, and related activities.
Wyton Oil & Gas Co., Newcastle, Wyo.

of

Price—At par

($20 per
working capital. Office — 51

Johnnycake Ridge Road, Painesville, O.

Underwriter—

None.

U. S. Automatic

Machinery & Chemical Corp.
(letter of notification) 300,000 shares of class A
common stock (par 10 cents).
Price—$1 per share. Pro¬
ceeds
For general corporate purposes.
Office—8620
Nov. 4

Montgomery Ave., Philadelphia, Pa. Underwriter—Co¬
Corp., 135 Broadway, New York. Of¬
fering—Expected before Jan. 1, 1956.

other

general

of

company,

Continental

Assurance

Co.

and

of

Continental

Casualty Co. Price—At market (estimated
$162.50 per share). Proceeds—To Continental
Assurance Co., owner of the shares to be offered. Office
about

William

—84

St., New York. 38, N. Y.

Underwriter—

None.
Universal Service Corp., Inc.,
Houston, Texas
July 8 filed 500,000 shares of common stock (par two
mills).
Price—$2.50 per share. Proceeds—For equip¬
ment, mining costs, oil and gas development, and other

corporate purposes.
Postponed.

Underwriter

—

None.

Offering

—

Utah-Arizona

Uranium, Inc., Salt Lake City, Utah
Aug. 1 (letter of notification) 600,000 shares of common
(par 16% cents). Price—50 cents per share. Pro¬

stock

ceeds—For expenses incident to mining activities.

Office
—Greyhound Terminal Building, West Temple & South
Temple Streets, Salt Lake City, Utah. Underwriter—
Trans-Western Brokerage Co., New
Orleans, La.

Office

purposes.

—

Consolidated

Yuba

16

filed

405,365

Gold

Toronto,

Otis, Inc. and F. H.

Crerie & Co., Inc., both of New York City.
Indefinitely postponed.

Price—To

at

corporate

Underwriters—Gearhart &

Canada.

Nov.

this

Corp.

payments under purchase and option agreements for
claims; for working capital and reserve Tunds; and for

of

(letter of notification) not exceeding 615-shares
capital stock (par $4) to be offered to employees of

Uranium

Aug. 19 filed 1,000,000 shares of common stock (par one
cent), of which 700,000 shares are to be sold for account
of company and 300,000 shares for account of Stancan
Uranium Corp.
Price—$1.50 per share.
Proceeds—For

•

it United States Life Insurance Co. of New York

Seattle, Wash., and members of his family. Under¬
Yellowknife

Nov. 28

sleek

(par 10 cents). Price — 50 cents per share,
roceecls—For drilling expenses, etc.
Office—216>,Cen¬
on

one

lumbia Securities

ug. 12 (letter of notification) 1,000,000 shares of nonssessable stock (par five cents).
Price—20 cents per

Proceeds

each

—

Underwriter—Skyline Securities,

Western Natural Gas Co.

.Union Gulf Oil & Mining Corp.
Sept. 9 (letter of notification) 600,000 shares of common
stock (par 10 cents).
Price—50 cents per share. Pro¬
ceeds—For mining expenses. Office—510 Colorado
Bldg.,
Denver, Colo. Underwriter—Honnold & Co., same city,

•

Denver, Colo.

hare.

presently outstanding. Pricecurrently entitled the holder to purchase

writer—None; shares to be sold through directors and

'

Birmingham, Ala. Underwriter—Graham & Co., Pitts¬
burgh, Pa. and Birmingham, Ala.

common

officers.

Swank

Sept. 9 (letter of notification) 3,000,000 shares of capital
stock (par one cent).
Price—10 cents per share. Proeeds—For mining operations.
Office—605 Judge Bldg.,

the

insurance company, and one mortgage loan firm. Under¬

Aug. 17

Co.

of

797,800 shares of common stock (no par).
Price—Proposed maximum offering price per unit is $5
per share.
Proceeds—To acquire one life and one fire

127, Arvada, Colo.

Uranium

exercise

Oct. 13 filed

Superior Uranium Co., Denver, Colo.
(letter of notification) 29,600,000 shares of comlon
stock.
Price—At par (one cent per share).
Pro¬
ceeds—For mining operations.
Office—608 California
Bldg., Denver, Colo. Underwriter—Securities, Inc., P. O,

Sweetwater

upon

—

Nov. 9

Uranium Drilling & Exploration Co.
(letter of notification) 3,000,000 shares of com¬
stock. Price—At par (10 cents per share). Proceedii
-For expenses incident to mining activities.
Office—
Moab, Utah. Underwriter—Honnold & Co., Inc., Salt
Lake City, Utah.

issuable

Evans & Co., Kansas

Boise, Idaho,

mon

be

Price—At par (in denominations of $100 each
multiples thereof). Proceeds—To refinance and dis¬
charge secured obligation. Underwriter
McDonald,

Underwriter—None.

Box

will

purchase warrants

Union

St.,

Underwriter

rants).

Idaho

Myrtle

Tower, Seattle, Wash.

or

Nov. 30 (letter of notification) 200,000 shares of common
stock. Price—At 25 cents per share. Proceeds—For min¬
—

non¬

Tunacraft, Inc., Kansas City, Mo.
Aug. 22 (letter of notification) $295,000 principal amount
12-year registered subordinated sinking fund de¬
bentures, dated Sept. 1, 1955 (with stock purchase war¬

Springs Uranium Corp., Rapid City, S. D.<
1,200,000 shares of common
stock (par 10 cents). Price—25 cents per share. Proceeds
-For expenses incident to mining operations. Office—'
Harney Hotel, Rapid City, S. D. Underwriter—Morris
Brickley, same address.

Office

shares of

of 6%

Summit

Warrior Mining Co., Birmingham, Ala.
Sept. 29 (letter of notification) 6,000,000 shares of non¬
assessable common stock (par one cent). Price — Five
cents per share.
Proceeds — For expenses incident to
mining activities. Office — 718 Title Guarantee Bldg.,

Office—414

100,000

1.27 shares
at $17.76
per
share for
specified in the warrant certificate.

op¬

Oct. 3 (letter of notification)

expenses.

Smith

Each warrant

Price—At

Honolulu, Hawaii.

common

1810

stock

by amendment. L. D. Sherman & Co., New
York, handled common stock financing in August, 1954,

ing

Pro¬

Tri-Continental Corp., New York
Oct. 27 filed 2,573,508 shares of
common stock (par
$1),

be named

^Sunset Uranium Corp., Boise,

unit.

—National Securities Corp.,
Seattle, Wash.

non-

Proceeds—For construction and

sulphur

Office

subscrip¬
one

per

stock. Price—At par ($1
per share).
Proceeds—For repayment of
loans, working capital, etc.

St.,
Bradford, Pa.
Underwriter—William T. Bowler & Co.,
I. O. O. F. Bldg., Bradford, Pa.
Sulphur Exploration Co., Houston, Texas
21 filed 600,000 shares of 6%
convertible

Price—$1,010

(letter of notification)

assessable

Webster

Nov.

stock.

common

Travelfares, Inc., Seattle, Wash.

common

stock.

ness—An

of

assistance, advertising and promotion; and working capi¬
tal.
Office—Widener Bldg.,
Philadelphia, Pa. Under¬
writer—Albert C. Schenkosky,
Wichita, Kansas.

(Ray L.), Inc., Bradford, Pa.

(letter of notification)

debentures, series A, due Sept. 1, 1965 and 24,common stock
(par 10 cents), to be offered
consisting of $1,000 of debentures and 100

ceeds—For payment of
indebtedness, expansion, estab¬
lishment of additional
offices; professional and editorial

Price—$1 per share.

Fdr

Nov. 8

units

f'

Nov. 10 filed 183,003 shares

Traveler Publishing
Co., Inc., Philadelphia, Pa.
Sept. 29 (letter of notification) $247,000 of 5%% con¬

shares

'

working capital and other corporate purposes.
P. Investment Co., Provo, Utah and

Underwriter—H.

Wilshire

Nov. 9 (letter of notification) 300,000 shares of common
stock. Price—$1 per share.
Proceeds—For mining ex¬
penses.
Underwriter—Cavalier Securities Co., Washing¬

vertible

for

and

43

Offering—

Fields

shares of capital stock

(par $1).

supplied by amendment.
Proceeds—To
selling stockholders.
Underwriter—Blyth & Co., Inc.,
San Francisco and New York.
Offering—Expected to¬
be

day (Dec. 8).

it Zapata Fetroleum Corp., Midland, Tex. (12/28)
30 filed 120,000 shares of common stock (par 10
cents). Price—To be supplied by amendment. Proceeds
—Together with funds from proposed bank loan of
Nov.

$1,000,000, to be used to redeem presently outstanding
10,000 shares of preferred stock (par $10), $1,005,000 of
debentures, $200,000 of 5% registered notes and
$116,250 of 4% convertible notes; also for acquisition,
exploration and development of additional property.
Underwriter—G. H. Walker & Co., New York.
4%

Zenith-Utah Uranium Corp.

Sept. 14 (letter of notification) 6,000,000 shares off class
A common stock.
Price—At par (five cents). Proceeds
—For mining expenses. Office—45 East Broadway, Salt
Lake

City, Utah. Underwriter—Bel-Air Securities Corp.,

same

city.

Utah

Grank, Inc., Reno, Nev.
Aug. 15 (letter of notification) 270,000 shares of capital

Prospective Offerings

stock.

Price—At par ($1 per share).
Proceeds—For ex¬
incident to mining activities. Office—312 ByingBldg., Reno, Nev.
Underwriter—Lester L. LaFortune, Las Vegas, Nev.

Aug.

•

directors

penses

ton

Varian

Nov.

16

Associates, Palo Alto, Calif.
$2,000,000 of 15-year 5% convertible sub¬

filed

ordinated

debentures

due

supplied

Dec.

1, 1970.
Price—To be
Proceeds—For purchase of

by amendment.
land, buildings and equipment for engineering, market¬
ing and manufacturing, and for working capital and
other

corporate

purposes.

Underwriter

&

Co., San Francisco, Calif.
(Dec. 8).

five

21

filed

cents).

2,000,000

Price—25

shares
cents

Dean

Witter

Offering—Expected

Wagon Box Uranium Corp., Provo,
Nov.

—

of

per

stock

small

1, B.

City
L.

are

Electric Co.
England, President, announced that the
considering the sale to the public of a
of common stock (not more than 75,000

now

amount

shares) early next year.
Securities Corp. and

Underwriters—Probably Union

Smith, Barney & Co., both of New

York.
Atlas

Plywood Corp.

Oct. 12 it

was

announced company

edness.

(par

Proceeds—To

explore and acquire claims, for purchase of equipment

plans to issue and sell

$3,000,000 of 5% sinking fund debentures and $3,000,000
of 5%% convertible/subordinated debentures. Proceeds
—To increase inventory and to

Utah

common

share.

today

Atlantic

approve

retire subsidiary indebt¬
on Nov. 2 voted to

Meeting—The stockholders
a

proposal to increase the authorized common
4-n

-M /%#/-»

W

44

(2456)

The Commercial and Financial Chronicle

Continued

jrom

Dolly Madison International Foods Ltd.

43

page

Nov.

shares to 2,400,000 shares to provide
for exchange of stock for minority shares to Plywood,
Inc., for conversion of proposed new debentures and for
possible future acquisitions of property. Underwriter—
For convertible debentures, may be Van A^styne, Noel
stock from 1,400,000

&

Offering—Expected before end

York.

New

Co.,

1955.

'

to

Du

early

announced

was

next

year

stockholders

who

will

may

&

sell
stock to its

Maine

&

mid-January

on

additional

holders

Southern

&

the

directors

shares
the

on

of

National

common

of

one

York

stock
new

the

sale

(par $10)
share

for

of

/

■-

'

100,000

■

-

and for

t

;

•

Power

was
some

&

construction

company

Co.

considering a public

Nov. 21 it was reported company is

following consolidation of nine stores into one
parent corporation which is expected before the end of
offer,

the

Underwriter—Carl M. Loeb, Rhoades & Co.,

year.

Offering—Expected in January.

New York.

Magnavox Co. (1/9-13)
Nov. 14 it was announced company plans to issue and

preferred stock (par

120,000 shares of convertible

sell

research
Under¬
Offering—Expected
9, 1956. Registration — Planned for about

writer—Reynolds & Co., New York.
week of Jan.
15.

bank

(Inc.)

an

stock

pur¬

loans.

Un¬

and

Corp.

it

Co., Detroit, Mich.

announced

was

stock

is

a

expected

Loeb

&

two

It is expected that the
in January and that the war¬
on

that date. Dealer-

Manager—Stone & Webster Securities Corp., New York.

* Green
5

(A* P.)

it

Fire Brick Co*, Mexico, Mo.

reported

was

common

stock

financing is ex¬
pected early in 1956. Underwriters—May be Blyth &
Co., Inc. and Shields & Co., both of New York.
Guff States Utilities Go.

May 16 it
$10,000,000

was

reported

may issue and sell
if market condition

first mortgage bonds
Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Lehman Brothers;
Merrill Lynch, Pierce, Fenner &
Beane and White, Weld & Co.
(jointly); Salomon Bros.
& Hutzler and Union Securities Corp.
(jointly); Kuhn,
Loeb & Co. and A. C. Allyn & Co., Inc.
(jointly); Lee
Higginson Corp. and Carl M. Loeb, Rhoades & Co. (joint¬
ly); Stone & Webster Securities Corp.
Houston Lighting & Power Co.
Oct.

31

it

reported company may sell early next
$30,000,000 of bonds. Underwriter—To be
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Smith, Barney & Co., Lazard
Freres & Co. and Blyth & Co., Inc. (jointly); Lehman
Brothers, Union Securities Corp. and Salomon Bros. &

..

was

about

year

determined

Hutzler

reported

was

(Mich.)
company

may

offer publicly

$1,000,000 of convertible debentures and some common
stock.
Business — Manufactures prefabricated homes.'
Offices—Dearborn, Mich., and Port Jervis, N. J.

Campbell,

writer—Probably
troit, Mich.
Muzak

Under¬

McCarty & Co., Inc., De¬
/ " ;/■/;

A

-

(12/13)

Corp.

Union Electric Co. of Missouri,
St. Louis 1, Mo., up to noon (CST)
on Dec.
13 for the purchase from it of $500,000 of 7%
cumulative preferred stock (par $1,000) of Muzak Corp.
and an interest in a royalty agreement with Muzak Corp.
Bids will be received by

•

12th Blvd.,

No.

New York Central RR.

:

-

f

asked ICC for authority to sell $6,600,000 equipment trust certificates to mature Dec. 15, 19561970 to Despatch Shops, Inc., a wholly-owned subsidiary,
with latter tc ultimately offer* the" certificates through
Nov. 28 company

Probable bidders: Halsey,-Stuart
Salomon Bros. & Hutzler; Kidder; Peabody
/'
'■/
/'
"" ,'•'/

competitive bidding.
Co. Inc.;
& Co. :
&

New

18 it

vote

..

.

New Haven^A-HartfordvRR^

York,
was

-;-

announced stockholders on Dec. 21 Will

approving a plairof exchange providing for the
(a) of not exceeding $58,131,150 of new un¬
100-year 5% debentures, dated

on

issuance

secured non-convertible
Jan.

1,1956, in exchange for present $55,363,000 par value
preferred stock, series A, on the basis

convertible

5%

$105 of debentures for each $100 par value of pre¬
ferred stock, plus $5.25 in cash ($5 of which will be

of

paid as dividend, on preferred for year 1955); and (b)
of $72,638,265 of new 5% non-convertible general in¬
come mortgage bonds, series B, dated Jan.
1, 1956, in
exchange for present $69,179,300 of 4%'% convertible

general income mortgage bonds, series A, due July

1

company

permit.

be,,

it

21

Nov.

shares held.

Homes Corp.

Modern

315

Offering—Expected early in 1956,

2 directors

Dec.

Peabody & Co.

Hayden,

announced company may issue and sell

was

Corp.

6

625,000 equipment trust certificates due annually from
Jan. 1, 1956 to 1971 inclusive. Probable bidders: Halsey,
Stuart & Co. Inc.; Salomon Bros. & Hutzler; Kidder,

Nov.

Power

record date will be early

by competitive bidding. Probable bidders:
W.
C.
Langley & Co. and Union Securities Corp.
(jointly); Kidder, Peabody & Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Carl M. Loeb, Rhoades
& Co.; Blyth & Co. Inc. and The First
Boston Corp.
(jointly); White, Weld & Co. and Shields & Co.(jointly);
.

(E. J.)

Korvette

Co.. New York.

share for each

determined

Lehman Brothers.

Byllesby & Co.

rants will be mailed to stockholders

stock

Underwriter—To

considering

are

common

approved a proposal to file a registra¬
tion statement with the SEC
covering a proposed offer
of 1,652,176 shares of common stock at the rate of one

Light Co.

_

with

★ General Public Service Corp.

i

program.

directors

together

Proceeds—To reduce
M.

Ford Motor

Dec.

financing early in 1956,
probably first to stockholders (this is in addition to bond
and preferred stock financing planned for Dec.
13). Pro¬
ceeds—For

York.

announced that the

was

$50). Price—To be named later. Proceeds—For
and development program and working capital.

Co.; Lehman Brothers; Merrill Lynch,
Pierce, Fenner & Beane; and White, Weld & Co. Regis¬
tration—Expected about Dec. 15 or 16.
'

announced that the company expects to
common

pur¬

prices,

than 50 cents per share.

more

announced

was

warrants.

Kuhn,

Danly Machine Specialties, Inc., Chicago, III.
Nov. 21 it was reported company plans to issue and sell
180,000 shares of its common stock. Proceeds—For gen¬
eral corporate purposes.
Underwriter—A. G. Becker &
Co., Inc., Chicago, 111. This will represent the first public
offer of the company's stock.

undertake

a

reported that the offering price was expected to be
$60 to $70 per sharer Underwriters—Blyth & Co.,
Inc.; The First Boston Corp.; Goldman, Sachs & Co.;

Underwriter—To

>■/;

the New

around

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Salo¬
mon Bros. & Hutzler; Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Union Securi¬
ties Corp.; Equitable Securities Corp.; Lehman
Brothers;
Blair & Co. Incorporated.
Bids—Tentatively scheduled
for Feb. '15.

on

was

;

(2/15)

construction.

new

Duquesne Light Co.

New

stock fi¬

(1/18)
public offering of class A
shortly after Jan. 1, 1956./
The stock to be sold will be
6,952,293 shares (or 15% of
the 46,348,620 shares to be owned by the Ford Founda¬
tion following reclassification of the
stock). Price—It'

be determined

Sept. 28 it

debentures,

common

was

Delaware

of

•

:

Power & Light Co.

loans

issue

Nov.

reported company plans to issue and sell
$10,000,000 of first mortgage bonds. Proceeds—To repay

bank

Laboratories class A

Electric Co.

it

Boston

$1,000 debenture and 100 shares
of stock.
Price—$1,100 per unit.. Proceeds—To build
plant to make charcoal brickettes and chemical by¬
products, notably furfural. Underwriters — William R.
Staats & Co., Los Angeles, Calif.;* and Carl M. Loeb,
Rhoades & Co., New York.4 Registration — Expected
Dallas

un¬

$10,000,000 and $12,000,000 of first mortgage
bonds. Underwriters—To be determined
by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;:
Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fen¬
ner & Beane
(jointly); Lehman Brothers and Blyth &
Co., Inc. (jointly): Glore. Forgan & Co.: and The First

a

■

be

between

is expected
shortly after Jan. 1 to consist of $900,000 of 5% sinking
fund debentures and 90,000 shares of common stock to

Nov. 28 it

Pacific

15

April 14 it

Hemphill, Noyes & Co., New
V-v.•/
-V

in December.

will

Alstyne, Noel

was

derwriters—H.

Cumberland Corp., Lexington, Ky.
19 it was announced public offering

sometime

Van

Exchange by negotiated sale to
buy at the prevailing market

Nov.

chase

Nov.

be offered in units of

Mont

offering

and

will

Federal

nine

company

—

This

& Co.

as

be

County Electric Co.

Florida

v

Mont

22 it

Stuart & Co. Inc.; The First Boston
Corp.;^-^Missouri Pacific RR. (12/8)
Kidder, Peabody & Co. and White, Weld & Co. (jointly);
Bids are expected to be received by the company up to
Blair & Co. Incorporated.
noon
(CST) on Dec. 8 for the purchase from it of $2,-

Stone &

Underwriter

Du

/

plans fur¬
ther financing, the nature and extent of which has not
yet been determined, except it is not the present inten¬
tion to sell additional common stock.
Proceeds—To be
used to pay for further expansion, estimated to cost an
additional $37,000,000. Underwriter—Blyth & Co., Inc.,
Nov.

/Halsey,

plans early registra¬
common stock, of which 50,000
.shares are to be sold for the account of the company and
125,000 shares for account of certain selling stock¬
York.

B.

reported company plans to issue and sell
some additional first
mortgage bonds. Underwriter—To
be determined by competitive bidding. Probable bidders:

to stock¬
each

who

July 18 it

(subject to approval of stockholders in Jan¬
Price — $30 per share. Proceeds — To increase

holders.

Du

discount of not

a

Essex

capital and surplus.

Craig Systems, Inc.
Sept. 26 it was reported
tion of 175,000 shares of

stockholders.

Kuhn, Loeb

Stock

chaser

shares held

uary).

its

to

of the common stock of

Bank, Atlanta, Ga.

recommended

basis

stockholders of Allen

some years ago.
Stockholders of Laboratories
Oct. 10 approved formation of
Broadcasting firm.

less

would be issued.

8

to

Nov. 28, it was announced SEC has authorized Standard
Power & Light Corp. to sell not more than
10,000 shares

RR.

plan to offer $105 prin¬
cipal amount of series B 5% income debenture
bonds
(plus 5% interest for the year 1955) in exchange for
each of the outstanding 274,597 shares of 5% preferred
stock (par $100). Not in excess of $28,874,564 of bonds
Citizens

2

Difquesfie Light Co.

ap¬

Oct. 20 stockholders approved a

Nov.

Dec.

on

Neenah, Wis.

Kimberly-Clark Corp.,

Broadcasting Corp.
announced that corporation, following is¬

Co. handled

on

a

/ Boston

Underwriter—

was

derwritten.

issue and

common

about

vote

Mont

offered

Under¬

refinancing program. Proceeds — Together
with funds from sale of $8,000,000 new 4*4% prior lien
bonds, to redeem $10,400,000 outstanding 4x/2% first
mortgage bonds.
proving

stock.

nancing

company

additional

some

Madison

Laboratories, Inc. of 944,422 shares of common stock
a dividend,
contemplates that additional shares will

it Bangor & Aroostock RR.
it

Dolly

f

of 250,000 shares of common stock (par $1.50).
writer—Cohen, Simonson & Co., New York.

1

its

during the

have the times or methods of financ¬
ing been definitely determined. Underwriter — Kuhn,
Loeb & Co., New York.

current year, nor

Co., New York.

Aug. 10 it

of

that Foremost Dairies, Inc.
give its stockholders the right

future date to

Thursday, December 8, 1955

No such financing is contemplated

financing.

announced

was
a

purchase

suance

'Vv,;'

it

Allen &

* Automatic Washer Corp.
Dec. 5 it was reported company plans early registration

Dec.

15

intends at

...

(jointly); Kidder, Peabody & .Co.; Equitable
Corp. Offering — Expected in February or

1,

2022, on the basis of $105 of new series B bonds for each

bonds plus $5.25 in cash, which will

$100 of series A
1955

include
Pont

interest.

& Co., New

Dealer-Manager—Francis

I.

du

York.

Northern States Power Co.

(Minn.)

capital require¬
$31,000,000. Present
plans contemplate these funds will be obtained tem¬
porarily from short-term bank loans ta be repaid from
proceeds of the sale of additional bonds late in 1955 or
early 1956. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc. and The First Boston Corp. (joints
ly); Merrill Lynch, Pierce, Fenner & Beane, Kidder,
Peabody & Co. and White, Weld & Co. (jointly); Equi¬
table Securities Corp. and Union Securities Corp. (joint¬
ly); Smith, Barney & Co.; Lehman Brothers and Ritex
& Co. (jointly); Glore, Forgan & Co.
March 29

it

for

ments

was

1955

announced

will

that

new

approximate

Securities

March.

NIGHT &
Conveniently located in the heart

ic Hudson Pulp & Paper Corp.
Nov.

28 it was reported company
may do some public
financing in connection with proposed newsprint mill,
which, it is estimated, will cost about $25,000,000. Under¬

of New York's
great financial

district, Pondick Press, Inc. is "open for business" 24 hours

o

writer—Lee Higginson Corp., New York.

day;,

Illinois Central RR.

7 days a week.

Bids
135

HIGHT & D!r)Y Service it

on
one

of the

reasons

guarantees the finest and most complete

"JPrinted

by Pandick"

will

East

and

to

&

TJ THAMES

ST., NEW YORK *

WOrth 4-2900

NY 1-3147




71 CLINTON

ST., NEWARK, N. it

MAHt.l 3-4994

"

\

the

at Room 301,
to noon (CST)

company,
up

equip¬
certificates, series 41, to be dated Jan. 1, 1956
in

30

equal

semi-annual

installments.

bidders: Halsey, Stuart & Co.
Inc.; Salomon
Hutzler; Kidder, Peabody & Co.

Inland

EUablitbtd I92S

'

(12/13)

by

Place, Chicago 5, 111.,

mature

Probable
Bros.

>

received

*;

Dec. 13 for the purchase from it of
$8,700,000

ment trust

printing service available.

hndic/rpress. /nc.

be
11th

"

Steel Co.

-

;

Offshore

Gathering Corp., Houston, Texas
C. Bintliff, President, announced com¬
an application with the Federal Power
Commission for a certificate of necessity to build a
364-mile submarine gas pipeline off-shore the coast of
David

Nov.

18

pany

has filed

Louisiana

the Sabine River to the Gulf Coast of„
Mississippi; It is estimated that this gather¬

from

the State of

ing system win cost approximately $150,000,000. - Type:
of financing has not yet been determined, but tentative

plans call for private sale of first mortgage bonds and

public offer of about $40,000,000 of securities (probably
notes, convertible into preferred stock at maturity, and
stock).. Underwriter—Salomon Bros. & Hutzler,

common

New York.

Outboard, Marine & Manufacturing Co..
22, Joseph G. Rayniak, President, announced that

Nov.

Nov. 3, Joseph L. Block,
the company plans to offer to its common stockholders
President, announced that a
substantial portion of the required funds for the comthe right to subscribe to 213,845 new common shares
party's expansion program (estimated to cost approxi-"^ (par 83% cents) in the ratio of one new share for each

mately

$260,000,000

for

three-year

period 1956-1958)
earnings and depreciation
However, he stated, it will also be necessary
to secure a large portion
through public financing. It is
quite hkely that a major part will be in the foqn.of debt
will be derived from retained

reserves.

10 held

later.

on a

record date to be determined and announced

Concurrently, 100,000 shares

are to be offered to
public for the account of two selling stockholders.
Proceeds—Together with funds from a long-term loan
of $3,700,000 frpm an insurance
company,, to,. be ugejl

the

*r•>'■ *1we

ii

Volume 182

Number 5488

.

.

about

Wash.

Nov. 22 it

reported company plans to issue and sell

of first mortgage bonds.
Proceeds
loans and
for new construction.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First
Boston Corp.; Kuhn, Loeb & Co.; Kidder, Peabody &
Co.; Equitable Securities Corp.; Harriman Ripley & Co.,
Inc. Bids—Expected Jan. 17.
'

bank

repay

sale

of

plus.

,

of preferred siock early next year.
Proceeds—For construction program.
Underwriter—To
be determined by competitive bidding.
Probable bid¬
ders: Kuhn, Loeb & Co.; W. C. Langley & Co. and
Glore, Forgan & Co. (jointly); Kidder, Peabody & Co.,„
The First Boston Corp.; Smith, Barney & Co.; Harriman.
Ripley & Co. Inc. Bids—Expected Jan. 17.

Southern Nevada
Nov. 7 it

it

announced

was

that about

800,000 shares of

New

to pay for expansion pro¬
gram. Underwriters—Porter, Stacy & Co., Houston, Tex.;
and Muir Investment Corp., San Antonio, Tex.

Texas Utilities Co.

may

it Union Planters National Bank, Memphis, Tenn.
an offering to stockholders
of 60,000 additional shares of capital stock (par $10) On

Bids will be received at Room

Nov.

for

Edison

to

grouped

issue.

go

;;Vv.

winning syndicate paid the
3%% coupon

a

The runners-up bid 100.1311
for the same coupon for a spread
rate.

Underwriters

of

distributors

and

cbrporate securities are
still floundering around seeking
to find a level at which such is¬
new

sues

will attract investment buy¬

ers.

But up to this point they do

answer.

double-barreled

The problem is
at

with the firming

moment

the

condition

of * the

money

compounded

being

by

market

the

ap¬

the year-end and the
customary institutional reluctance
to take on new issues at this time.
proach

The

of

more

venturesome, who bid

in ne.w issues, this week for dis¬
tribution, seemingly encountered
the same lack of interest, at least

of buying orders, that
prevailed for the last several

in the way

has

weeks.

Although

some

corporate bor¬

for example Consoli¬
dated Edison Co. of New York,
decided to go ahead after having
waited for months for improve¬
ment in the market position and
rowers,

the

as

outlook

new borrowers,
decided on a "wait

for

other segments

and see" course;

Prominent

the latter cate¬

jin

is the Public Housing Ad¬
ministration which had planned
to market about $90 million of

during the

rates, together

with slug¬

money

markup in

in the tax-exempt
brought a decision to post¬

gish conditions
market,
pone

the business

Tightening
mercial

paper

indefinitely.

rates on comand bankers ac¬

of

coming in the wake of
the most recent markup in Re¬
serve rediscount rates presumably
was the moving force behind the
ceptances,

decision.




j.

.

,-i.

it

was

reported

that

common

stock

Sachs &

a

secondary offering of
planned the week.of

was

Underwriters—Blyth & Co., Inc. and Goldman,
Co., both of New York. It was withdrawn.

York County Gas Co., York, Pa.
29 it was announced company

June

determined.
and

Proceeds—To

probably to refund

an

pay for new construction
issue of $560,000 4% % first

mortgage bonds due 1978.

Underwriter—May be deter*
bidding. Probable bidders; Hal¬
Stuart & Co. Inc.: A. C. Allyn & Co. Inc.; White,

mined by competitive
sey,

Weld

&

Co.

and

Shields

possible that issue

,

may

&

Co.

be placed

(jointly).

Salomon

Bros.

&

Hutzler

It is alee

privatejv

Salomon Bros. Group
Offers Pa. RR. Equip'ts
associates

contemplates tha

issuance and sale later this year of a new series of it*
first mortgage bonds, in an aggregate amount not yet

'

Ms'

and

NSTA

today (Dec. 8) of¬
fering $11,595,000 of Pennsylvania
Railroad series EE■$%% equip¬
are

Notes

trust' certificates, maturing
annually Jan. 1, 1957 to 1971, in¬
ment

clusive.

The

"

i

\ V'

.:

<

.

certificates

are

priced

SECURITY TRADERS ASSOCIATION OF NEW YORK

•

to

yield from 3.10% to 3.40%, ac¬
cording tb maturity. Issuance and
sale of the ' certificates arb subject
Inter¬

Edward J.

Kelly, of the firm of Carl' M. Loeb, Rhoades & Co.,
elected President of the Security Traders Association of New

wag,

TorkyJnc., for, the ensuing
y

year.

Tisch, b| Fitzgerald & Co., Inc.

Mr. Kelly succeeds Alfred F;

;

state Commerce Commission.
The Week Ahead

Next

if

week,

The

there

is

Electric Commission.

This under¬

Associated
Drexel

.

be

secured

by

&

in

the offering are:
Union Securities

Co:;

Corp.; and Stroud & Co. Inc.

first collateral trust bonds

new

and for 50,000 shares of new pre¬
ferred to provide fdnds for repay¬

Minshall Organ Stock

ment of bank loans and to finance

construction.

'

'

\

On Wednesday New Jersey Bell

Telephone Co. will open bids for
$25 million of 40-year debentures.
This business likely will attract
ample competition.
N. Y. Thru way Bonds

A

bright spot in the otherwise
cloudy investment market sky was
the brisk reception which greeted
the newest blodk of N. Y. State

had

rejected

bids

larger

single

block

months

back,

The

the
public,
Brothers & Co.,
Inc., of New York City, of 100,000
shares of common stock (par $1)
offering
through Baruch

to

of Minshall

Organ, Inc. at $3 per
share has been completed, all of
said shares having been sold.
Minshall Organ, Inc., is a manu¬
facturer of high quality electronic
home

organs

struments

The second such block, after the
agency

Offering Completed

since

1944.

Their

brought

a

for

a

some

bid

of

100.1016 for 2%s and 2.70s for an

has

met

fine

with

unusual

reception.
Sales have in¬
creased consistently and backlog
of orders are said to be the largest
.

in the company's

history.

2.7370%.
The

(Special to The Financial Chronicle)

July, 1985-1995, was priced for
LOS ANGELES,' Calif.—Mario
reoffering to yield from 2.60% to. S.
Lopez has become associated
2.75%, depending on maturity.
with Akin-Lambert Co., Inc., 639
With

the

older

issues

of

the

lively interest
in the current offering which, as

investors

showed

indicated, afforded 10 to 20 basis
points more in return.

-

■

:

i»„.

Nathan A. Krumholz

Henry Oetjen

Daniel

G.

Mullin

Second

Vice-President; Barney Nieman, of Carl Marks & Co., Inc.,
Secretary, and Daniel G. Mullin, of Tucker, Anthony & Co.,
Treasurer.
Elected

as

Directors for

a

Two-Year Term Were:

Edward A.

Horn, Kuhn, Loeb & Co.; Reginald J. Knapp, Wertheim & Co.;
Wilbur Krisam, John C. Legg & Co., and Lewis H. Serlen, Josepthal & Co.
'
«y >
■ -«*
■}?.
£ #
.

.

Trustees of Gratuity Fund (Two-Year
man,

Term) : Edward L. ChaoSpencer Trask & Co.; Salvatore J. Rappa, F. S. Moseley & Co.

National Committee:
Ssmuel Magid, Hill, Thompson & Co.,
Inc.; John J. OKane, Jr., John J. O'Kane, Jr., & Co., and Harold B.
Smith, Pershing & Co.
■

.National

Lopez With Akin-Lambert

issue, maturing January and

Thruway selling in the market to
afford a return of 2.50% to 2.55%,

Kelly

Nathan A. Krumholz, of Siegel & Co., was named First VicePresident of the Association; Henry Oetjen, of McGinnis &
Co.,
•

Alternates:
Samuel F. Colwell, W. E.
Stanley F. Dawson Smith, Cruttenden & Co.; John
D. Olandt, New York Hanseatic I Corp.; Stanley M. Waldron, Mer¬
rill Lynch, Pierce, Fenner & Beane, and Graham Walker, Joseph
Committee

Hutton & Co.;

indicated net cost to the borrower
of

Edward J.

line of medium priced musical in¬

Thruway bonds.

much

to

463,190: 240 70-ton covered hopper
cars; 500 flat cars and 1,130 70ton hopper cars. '
•

taking will be made via the ne¬
gotiated route.
;
Delaware Power & Light Co.
will be seeking bids for $10 million
of

is

issue

the following new equipment esti¬
mated to cost not less than $15,-

no

change in plans in the meantime,
will bring to market $50 million
of bonds of the Quebec Hydro

gory

temporary loan notes
week. But the further

14

Nov. 21.

28.

to the authorization of the

lull in buyer interest.

to have come close to

not appear
an

of-roughly $2.20 per $1,000 bond.
In these days of close shooting for
a
reoffering basis,, that spread
may have caused some temporary

Feb.

now

Whirlpool-Seeger Corp.
Nov.

Inc.; The First Boston
Corp.; Union Securities Corp.; Kuhn, Loeb & Co., Leh¬
man Brothers and Blyth &
Co., Inc. (jointly); Hemphiil,
Noyes & Co. and Drexel & Co. (jointly); Kidder, Pear
body & Co. and Merrill Lynch, Pierce, Fenner & Beane
(jointly); Harriman Ripley & Co. Inc. and Stone &
Webster Securities Corp. (jointly). Bids —
Tentatively

bankers,

100.35 for

annual

able bidders: Halsey, Stuart & Co.

after
Consolidated,Edison Co.'s $70 mil¬
lion of 30-year, first and refund¬
ing mortgage bonds, were a bit
more
than usual apart in their
The

equal

Electric Service Co.. (2/28)

scheduled

syndicates

company

15

bidders:

—To repay bank loans and for new construction. Under¬
writer—To be determined by competitive bidding. Prob¬

Proceeds—For expansion program.

the

in

Co.,

company

Bonds are expected to
privately. Proceeds—For new pipe line. Un¬
derwriter—Eastman, Dillon & Co., New York.

28 it was reported company plans to issue and
$10,000,000 first mortgage bonds due 1986. Proceeds

sell

Sept. 20, Thomas B. McCabe, President, announced l
major financing program will probably be undertaker
by next spring, No decision has yet been reached as
to the precise type, amount or date of financing. Stock¬
holders approved proposals to increase the authorized
•common stock to 40,000,000 shares from 10,000,000 shares,
and the authorized indebtedness to $150,000,000 from

for

mature

Ltd. v'
plans to issue
$20,000,000 of securities, probably

reported

publicly over
in units Of debentures and stock.

Nov.

Scott Paper Co.

bids

to

Transmission

was

150,000 shares of

Texas

privilege). Underwriter—Eisele & King, Libaire, Stout
•& Co., New York.

Consolidated

SS,

Probable

it

be placed

Halsey, Stuart & Co.
Inc.; Salomon Bros. & Hutzler; Kidder, Peabody & Co.

offer to
its stockholders the right to subscribe for 1,200,000 addi¬
tional shares cf common stock (with an oversubscription

two

series

installments.

21

and sell

2117, 195 Broadway, New

certificates,

Riddle Airlines, Inc.
Nov. 2 it was announced company plans soon to

into

l-for-10 basis.
Price—$35 per share. Underwriter—
Equitable Securities Corp., Nashville, Tenn. Meeting—
Stockholders to vote Jan. 11 on increasing authorized
capital stock from $6,000,000 to $7,000,000.
••
>
a

(12/15)

New York.

Investment

Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Union Secu¬
rities Corp.; Lehman Brothers and Bear, Stearns & Co.
(jointly); The First Boston Corp. Offering—It is antici¬
pated that the new stock will be marketed'during the
first quarter of 1956.
Nov. 29 directors authorized

York 6, N. Y., up to noon (EST) on Dec. 15 for the pur¬
chase from the company of $9,600,000 of equipment trust

$50,000,000.

Proceeds—For further investment in common stocks

Probable bidders:

1956

County Natural Gas Co.
it was reported company plans to sell about
$600,000 of common stock. Underwriter—Bache & Co.,
17

(1/31)

subsidiaries and for other corporate purposes. Un¬
be determined by competitive bidding.

Westcoast

Pike

Oct.

of

Power Co.

-k Southern Pacific Co.

of 30,(

derwriter—To

Underwriters—For stocks: Hornblower & Weeks,
York; Wiliam R. Staats & Co., Los Angeles, Calif.;
First California Co., San Francisco, Calif.
Bonds
be placed privately.
'

and

issue

Nov. 18, the directors authorized the sale; of "additional
shares of common stock to raise approximately $15,000,-

gram.

be offered for public sale
Proceeds — Estimated at

new

a

(no par value), of which

stock

planned to initially issue 10,000 shares bearing a $5
and having a redemption value of $105 per
Proceeds—For expansion program. Underwriter
—Rauscher, Pierce & Co., Inc., Dallas, Tex.

of

announced company plans to sell in

was

authorized

common

new

share.

approximately $10,000,000 of new securities (probably
$7,000,000 first mortgage bonds and $3,000,000 preferred
and common stocks).
Proceeds—For construction pro¬

Pigeon Hole Parking of Texas, Inc.
additional capital stock would
after the first of next year.
about $2,000,000, will be used

issuance

Industries, Inc.

stockholders

dividend

000.

authorized

45

it is

110,00(1
shares of cumulative convertible preferred stock (par
$10). Proceeds—For exploration and drilling program,
etc. Underwriter—Previous common stock
financing was
handled by Hunter Securities Corp., New York, who
it is stated, will not underwrite the new preferred issue.

$8,000,000

Oct. 22

stockholders

30

11

shares of

announced bank

was

South Texas Oil & Gas Co.

reported company proposes issuance and

was

Oct.

~

Underwriter—Blyth & Co., Inc., Seattle, Wash.

Aug.

(1/17)

Pennsylvania t Electric Co.

Nov. 7 it

Texas

Bank, Seattle,

(1/18)

plans to offer its stock¬
holders of record Jan. 18, 1956, the right to subscribe
on or before Feb. 24
for 100,000 additional shares of
capital stock (par $20) on the basis of one new share
for each eight shares held. Price—To be not less than
$85 per share. Proceeds—To increase capital and sur¬

$20,700,000

To

—

ll*i.'■'»'1 JT U'&J&* ?J«V( fc''<itJ'^: 'v&feb<£'^WiVV*'rof-SHMtWiWAiwiW'*

(2457)

Seattle-First National

(1/17)

Pennsylvania Electric Co.
was

■

The Commercial and Financial Chronicle

.

expansion and general corporate purposes. Underwriter
-—Morgan Stanley & Co., New York. Registration—Ex¬
pected in the near future.
Oct. 28 it

I'IMT/S1*MWSIW'.(&V^V^'taSRW

South

Spring Street, members of

McManus & Co.
Election held Dec. 2,

Exchange.
formerly with H.

Lopez was

Hentz

&

Co.

conducted
business

and

his

in Los

prior

own

thereto

investment

Angeles.

With Frank L. Walker

Caunter Adds to Staff

the Los Angeles Stock
Mr.

1955, at, the Bankers Club.

(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

James J.
connected
with

CLEVELAND, Ohio
Strnad

is

now

L. A. Caunter &

ing.

.

—

Co., Park Build.

•

MARIETTA, Ohio

—

Janet S.

Storms has been added to the staff

of Frank L. Walker & Co., Peoples
Bank Building.

46

The Commercial and Financial Chronicle

(2458)

Continued

from

the

on

12

page

suspicion,

It

will

fiscal

the 1953 "squeeze" and that mod-

be offset by either an increased
yield in the future, by future gains
at the

taxed

capital gains rate, or

a

combination of both.

Up

future pol-

govern

monetary policy have

been

of

productive

the

nificant alteration of Federal Re-

activity.

serve

That

(2)

the

year

capital

gains

bonds

new

by

bond

losses

year.'-

during

The

terms

at

the

of

Dec.

15

re¬

2V2%

has

has continued1 to prosper, and

ness

most

Indebtedness 'and

Notes

2%%

one-year

the

1%%

proximately

$2,300,000,000 since
mid-year. These loans increased
only about $200 million during

elect to accept either a

can

Certificate of In¬

debtedness, or a
two-and-onehalf-year 2%% Note, or a combi¬
of

nation

both.

The

the

matures Dec. 1, 1956, and

despite

the note,

June 15, 1958. The new issues will

Con-

year.

credit continues to expand

sumer

certificate

last

period

same

repeated
the

down

to be

seems

efforts

to

slow

expansion, and there
widespread optimism

be dated Dec. 1, 1955, and the de¬

that

livery

date

will

which

time

the

standpoint,
Under such conditions, is it not
reasonable to anticipate that the

and

be

with

attached.

the

These

rates

short-term
both

27/8%

be

coupons

15

will

to Dec. 1.
in

in

line
1953

and

issued.

a

Market

reaction preceding and subsequent
to the discount raise discouraged
whatever

hopes
might have had of
tial

matter

a

of

considerable

Treasury

any consequen¬

of the

extension

As

the

public debt.

fact,

there

discussion

the

the

holdings of the Fed¬
Reserve, corporations, and
possibly a substantial number of
larger banks, will be rolled into

eral

the certificate.

Banks

hold about

$2i/2 billion of the maturing issues,
and

I

do

feel that

considerable

a

number of smaller banks
may con¬
ceivably be attracted to the 27/g%
note.
While at par the after-tax

yield

is

approximately the

that

as

June

it

the

on

15,

must

of

2%%

of

bond.

as

the

discount at

the

accept

which

it

is

to which hold¬

note

issue

exchange represents that

in

the

much of

gain in the Treasury's aim
lengthen the debt whenever

a

on

to

pos¬

sible.

I feel that the rate
of 2%%

the

certificate is sufficiently
attractive .to
corporations
to
prompt

rights

them

or

which

new

might

maturing

to

buy

issues

either
from

otherwise

obligations

the

banks
the

use

to

obtain

funds for loan demands.

Future Government Bond
Prices

proceeding to make an
estimate of what the future
may
hold with respect to

Government

prices, I think

recognized
sented

is,

Reserve

that

to

the

put

tremely confused.

it should

picture

it

pre¬

mildly,

After

be

the

ex¬
un¬

fortunate illness of the
President,
a
strong feeling developed that
in some indefinable
rates would

way

ease

as

a

interest

result of

relaxation of the restrictive

etary

a

mon¬

policy of the Federal Re¬
This idea also germinated
circulated reports that the
authorities feared a repetition of
serve.

from




excellent

an

will

restrictive

a

continue

policy

to

until

definite change in the
picture? I am unable to
convince myself that we can ex¬
is

pect

early easing of rates

an

even

though business does tend to level
off, because, in my opinion, the
tremendous

the

gain since the Presiand

regained

then

momentum

and

at

least

perhaps

ThP

until

behind

recent

the

.

waiting

eral

Reserve

fan

end

to

The

rent

cu

less unexpected in some quarleaves little doubt in my

ters,

in

toward

and

the

the

mone-

bears
there

correct, the

am

out

economy

be

can

little

basis

that

to

the

mfy antl.clPafe
Lr f ^
" rat.es ln
fhf r^nc!lhnit 7th
fhG fp a*^ayS
+

Lv8!?6

°n
may collapse premabecause at the mornent-

tha

Li
turely
+

to

h

borrow

analogy

^

i

+.P

Dr.

again

we

Burns

poised on a
aSricultural

are

faU'ubeen

situation has

distressing for

^lm®» and there| is evidence
that housing starts this
year will
not

it

equal last

seems

year s

totals.

Also,

evident that the automo-

bile industry will have some difficulty in approaching last year's

Pu°fVf
that the

Because of the fact

prosperity and, undoubt-

edly, the

very existence of a substantial number of other industrial

enterprises, depends
demand

from

the

on

continued

farmer,

the

builder, and the automobile maker
for

the

products

of

these

mdustries, it is possible, of
that
eventually we may
trend

At

economy.

the

ever, as I have
appear
In

in

our

moment, how-

It

is

less

or

more

however,

that

the

our

reflected the

rate

trends, de-

continuation

or

current business

I feel that the recent dras-

decline

prices,

are

in

Government

triggered

discount

anyway,

and

by

rate,
the

the
was

rise

bond

raise

in

overdue
in

prices

different

seven

than

more

indicative

of

30%
the

the

in

pany

in¬

of

the

total,

diversification

that has taken place in this

recent

com¬

past.

It

is

now

nized

tion

without

letup,

icals

axiomatic,

interest

do

rates

not tend to continue in

direc-

one

I would

and

be inclined to anticipate a moderate

easing of rates sometime about,
or just
prior to, the middle of
next year. It might very well be
that by the end of 1956 we may
look

back

prices
tive.
time

cautious

should

chances for
range

today's
bond
relatively attrac-

upon

being

as

A

attitude

furnish

us

bond

our

excellent

bankers

as

this

at

maturity

to

ar-

sched-

ules

to provide opportunities to
advantage of tne interest rate
change when it occurs,

take

Emanuel, Deetjen Group
Offers Reading Tube
Preferred Stock
of

ReadinS

Tube

certain

t

t

of its

CorP-

$23 25
to

he

Per share-

$l

-

be aDDlied to the com-

fund

Seb£ntures;

due

mi\m

m%

July 1, 1971 at
wiU £e applied to

the payment of the principal balof

ance

the

company's

note

due

May

11, 1965, payable to Berks
County Trust Co., and the balance
will be piaced

in

the

general funds

company's
-

Tbe n6w preferred stock will be

convertible at any time into com-

a^ j.be

mon

sbares

f0r

r£de

0f

i 56

common

each

preferred share.
«pbe preferred stock is redeemable
at prices ranging from $27.50 per
Bbare pri0r to Jan. 1,

1961 down to:
sbare after Dec. 31, 1964.
sinCe
1945, the company has
been engaged in the manufacture
<^5
*

per

and saie 0f copper tube for use in

construction,

plumbing,
radiant
and
general heating, refrigerafj0n, air conditioning, oil burner,
industrial and allied trades.

Prior

to

that time, the company manufactured cold drawn seamless steel

tubing and cast steel flanged fittings, which operations were discontinued in 1945 when the

agement
the

became

manufacture

man-

convinced
of

copper

offered possibilities of larger

writing

Co.;

members
group

Blair

stone

Co.;

that

tube
and

profitable operations.

Other

&

of

the

include:

under-

Bache

&

Co.

Inc.; Hayden,
Co.; Dempsey-Tegeler &
Francis I. duPont & Co.;
&

Arthurs, Lestrange & Co.; Stroud
&

Co.,

&

Co.

Incv; Arthur M. Krensky
Inc.; Straus, Blosser
&
McDowell; Robinson & Co. Inc.;
Butcher &
man

&

ar$-recog¬

"substantial

g
?

■

,

/

j

„

of products is-favors

outlook-forsteel, chem¬

and

construction $ products
services is particularly good.

There

are

changes

MCS in

position

developing its competitiv
in heavy industrial an<

marine

construction.

These proj

ects include: two dams in Califor

nia and

India;

Washington;
pulp

a

pipeline-ii

a

and

papermill
an air
field41:
substructures 'i

New Zealand;
Crete;bridge

further

no

ent structure of

pres¬

the company

an¬

Sherrerd; Suplee,YeatCompany, Inc.; Newburger

during the preceding few months &
Co.; and Warren W. York & Co.
was
mainly psychological, based inc.

the work.

Being
field

This company is now in the
stage
of
"digestion" of the additions
made
in
1954
and
early
1955.

ing 1954

included Newport

Corporation

and

Steel

its

subsidiary^
Products
Company,
Inc., The Shoup Voting Machine
Corporation,
Marion
Power
Shovel Company and its subsid¬
Radio

iary,

the

Osgood

Company, and
C. A.
Pitts General Contractor,
Limited. During 1955, New York
Ship Building
Corp., Devoe &

Reynolds, Inc., and the Tennessee
Products

and '

Chemicals

Corp.

anticipated

was

the

at

time

diately
contribute
to
MerrittChapman
&
Scott's
earning
power,

and

would

be

that

time

and

required

to

effort

develop

their individual

potentials. How¬
considerable progress has

ever,
been

made

to

Steel, which
at

date.

deficit

a

Newport

expected to op¬

was

for

at

least

a

best

&

Scott

has

in

made

establishing

greater

a

for

the

opera¬

result

a

these

recent

of

only oper

company'*}

and services, but also
stability to the earning^
longer term.
No less
than 14 separate companies were
acquired during recent years anc
this pooling of financial
resourcesj
operating know-how and other
the

assets will enable

these

MCS to operate

various

companies
profitable basis.

more

on

Obviously, my opinion is influ
by the effects these vari
ous acquisitions have had on th
growth of the company.
Tota
enced

have

increased

since

195

by 1,224%; net worth by 1,200%J
net
working capital by 1,319%J
gross revenues by 887%; and net
income
before
taxes
by 409%J
based on projected 1955
estimates.}
In

addition

various
have

this

to

also

enabled

& Scott to

man

growth, these
acquisitions

corporate

Merritt-Chap-j

diversify its activ-l

ities.

The advantages of this
versification are
many
and tlr
various
companies are comple¬

di-j

divisions
the

of

the

company,,

chemical,

terials to the steel division.
are

examples of but

opportunities

As

not

markets for the

paint andi
metallurgical division supplies pig
iron and other steel making ma¬

tion.
.

will

un¬

diversifi¬

products

over

while

earnings

overall

of

program

will lend

other

con¬

solidating their recent acquisi¬
tions, which has had. the effect of
potential

th(

Devoe

considerable

integrating and

in

marine

used

Merritt-Chapman

years.

progress

and

mentary to each other's operation
& Raynolds' paints can be?
for nearly all the divisions
in the company.
The steel divi¬
sion supplies certain products toi

following
its
acquisition,
produced
earnings last October
and is currently
enjoying one of
year

its

a

which

up new

assets

also acquired.

industrial

•

heavy construction, MCS has
cation

Utah

concentrated

so

of

dertaken

These successive acquisitions dur¬

Michigan; tunnbl:

qualified to assume the responsi-!
bility for the original design and
planning, on a construction proj
ect, regardless of size, and the
carry it through to completion ,o

significant

additions to the

or

York and

in Virginia and Maryland; a hote
in the Dominican
Republic. MC

ticipated in the immediate future.

erate

saTe orthese sLres

ssHsfwill

di-

received

he

n

that some of
these companies would not imme¬

hare

Qf

fr0m

that

ha vi

of these acquisitions

$L25

and

and

It

preferred

officers

fields

as

range

were

Emanuel, Deetjen & Co. and as¬
are offering 80,000 shares

more

market

com¬

derived

now

no one of which accounts

able.- The

*ion, loan expansion, etc.

analysis, therefore,

the

upon

abatement of
boom.

a

said, this does not

prices, in which
shifts in interest

tic

see

booming

the future course of bond

pends

other

course,

to be imminent.

the final

for

This

-

are

The demand for this
company's

theory

contention

my

least

at

dustries,

tighter

/

on^nflat?onarySpressures &
fore, if I

from

operations.

revenues

growth potential.

forces

working

effect,

in

now

vL Simultaneously, the company is
in offering 40,000 shares of this stock

^Le

of

scope

pany's

has strengthened its staff throug
the years to the point where it?

i f current
raise in
which was more

mind that the attention of

construction, boom. The following partial list
hoisting com¬ ing of the company's present 0
dating back to 1860. Since recently completed jobs gives ai
1951, it has greatly broadened its idea of the success attained b,

pany,

ment-—all

+
the a'
discount rate
«

line

marine salvage and

policies
natural

lrSg cumulative convertible
the re" stock' 1955 series at $25

evaluate

Security 1 Like Best
old

an

market. This feeling is predicated
the. restrictive nature of fiscal

on

sociates

watchful

is

represented - in
chemicals,
paints, steel products, heavy con¬
struction and earth moving equip¬

year-end

longer.

even

tion

New

present boom will carry for¬

ward

or

its

lost

a

business

reversal of

Before

bond

follow

be

business

Part

on
the 2%% bond
capital gains resulting

selling. The extent
ers

the

coupon

the

on

that

yield

consists
from

of

the note is de¬

on

a

2%%

the

bonds

remembered

from

against

same

1958 at current market,
be

current income

rived

2%%

Federal

was

cate issue because of the unsettled
condition
of
the
market.
Cer¬

tainly,

will
a

concern¬

the desirability of confining
offering to one 2%% certifi¬

ing

1956

from

year

there

with
when

certificate

were

pre¬

interest

case

rates

note

notes

should

are

2%%

a

at

Dec.

Accrued

be paid in each

8,

maturing

certificates

sented

Dec.

of

has

market

The

money,
wide
the such asthe expansion of-circular

reached

now

of

go on the downward side in the

been

April, and

of'you. Holders commercial, industrial, and- agrimaturing \lk% Certificates Cultural loans have increased ap-

of the

of

has

rate

highest point since 1934. In spite
of increasing interest rates, busi-

funding were announced last Fri¬
day and by now, I/presume, are.
familiar to

rediscount

the

early

extending maturities, because we
may conceivably have further to

fear

raised four times since

=*-.

The

return

Government

Continued from page 2

when nor-'
circulation

of the lost ground, tnat it
would be. extremely prudent to
remain cautious in the matter of

of inflation rather than deflation,

that

the

in

year

some

definite impression
in Washington is

my

is that the

called will not be drastically, off-1
set

main

However^

or

the

lot

a

monetary

the

in
due

are

next

J.dent's illness,

factors
affecting
policy
are
obvious
factors:
;
enough. Business is still booming
in
(1) That Federal Income Tax;
spite of the fact that in a few
statutes
and
rates
will
remain segments of-the economy there
are indications of-a
substantially the-same as now;
levelling off.
The

of

Thursday, December 8, 195

.

.

see

strong feeling, despite the fact
that during tne past two weeks

sig-

any

to

and loan liquidation can be expected to develop an easing tendency in
money rates.
I have a

to

result of

not

Therefore,
various
types of comparisons
which
show "the
advantages of
selling one issue and buuying an¬
other are predicated on two future
a

mally

date, the complaints
that money is tight enough, and
that business is slowing down as

icy.

interesting

authorities

months
eration would

that

the offing.

what action will be taken by

The Banks and Government Bonds
against which to charge the losses.
Otherwise, a reduction in earn¬
ings in a loss year is presumed to

be

hope,

or

easy money was in

.

through

merged companies

These

few of the

a

can

which

the

benefit

oner

changes and acquisitions, MerrittChapman & Scott has become one

another, not to mention the
sav-j
ings to be achieved through

of

elimination

the

nation's

giants.

Upon

companies, the

bination

will

America's

turing

100

worth

in

should

as

largest

corporations,
of

excess

Projected

new

emerge

1955

of

tion

with a net
$130 million.

Division

has

position

strong

Scott

has

in

achieved

the

a

industrial

and

marine construction

and

the

industry
companies' past and cur¬
rent projects cover many types of

revenues

$375

&

six major divisions. The Construc¬

manufac¬

gross

approximate

Merritt-Chapman

com¬

one

thej

of
duplicate
over-5
head, estimated at $5 million an¬
nually.

industrial

completion of the
merger
of
these

contemplated
several

newest

million

and net profit before taxes will be
in the neighborhood of

in

work

the

construction

field

to

performed all over the world. The
Chemical, Paint and Metallurgical

Under the leadership of present
management, which took over in
April of 1951 when Mr. Louis E.

Division includes Tennessee Prod¬

Wolf son

agricultural

$28 V2

$30 million.

the

ucts

has been
able to make rapid strides toward
building a widely diversified, yet

strategically
eration.
to

It

note

rate

company

division

that

MCS

and

all

are

companies

tories,

which

its

corpo¬

well

estab¬

with

through

undergone

this

company

emerged

the

as

parent

of

1754:

for

.

company

new

far-

the

con¬
~

of

this

construction

Steel

and

to the year
Steel

Prod¬

States, with a rated annual
ingot capacity of approximately
708,500 net tons; and the Milton
Steel

foresaw the need

struction division in order to take

advantage

The

Products

carbon

division

and

which

alloy steel
bars, bar size shapes and reinforc¬
ing steel in Milton, Pa. The Ship¬
building Division's activities are
carried on by New York Ship
Building Corp., which has a 230
produces

construction work in

early 1950's and expanded its

this

United

finally

flung industrial enterprise.
The

in

Raynolds,

of New¬
port Steel, which is about the 20th
largest steel manufacturer in the

Hav¬

a

&

ucts Division is made up

dramatic

has

included

Devoe

States and dates back

■

growth, the

Also

is

ranks among the top five
paint manufacturers in the United

long his¬
the years

have operated successfully.

Corp., which
aromatic
and

chemicals,

which

well-integrated op¬
of significance

lished

ing

materials.

is also

family

heavy,

metallur¬
gical products, fuels and building

elected Chairman of

was

Board, the

Chemical

and

produces

Volume 182

Number 5488

The Commercial and Financial Chronicle

...

.

47

(2459)

yard in Camden, N. J. and is

acre

Revlcn Common Slock

of the three largest shipyards
in the U. S., capable of building
any of the largest ships yet de¬
one

Offered at $12

signed.
The Equipment Division
is comprised of the Marion Pow■•er Shovel Co. and
its subsidiary
the

Osgood Company, which

ufacture

plete

the

line

world's

of

com¬

excavators,

shovels, and mobile

power

Also

cranes.

its

Robert
vestment

&

facture of truck trailers and semi¬

r.d,"liquid

cargo.

This

currently
benefiting
from
adaptation of "piggy back" trail¬
to

railroad flatcars and

looks
reve¬

ers

nue from this new

by the

of busi¬

source

by

Id the Manufacturing Division
are three
companies—Nesco,

is engaged in the fabrica¬
tion and coating of sheet steel and

which

«9ts,

manufactures

television

.

tronic

assemblies

forces

and

television

the

for

radio,

juke

for

in

N.

introduced

J;,

&

the

of

portion

in

cf this

the

the

plant

DIVIDEND

annual

H.

in¬

and

for

en¬

New

to

CAN COMPANY

City

.PREFERRED STOCK

NOTICES

der

roof

one

economies

and

of

make

of

one

1955 a quarterly dividend
per cent was de¬
Preferred Stock of this Com¬
payable January '3, 1956 to Stock¬
and

three-quarters

the

on

of

remain

record

15,

open.

production
come

a

metics

different

immediate expansion in sight and

which

with

terms

adequate working capital
position, the outlook is for higher
earnings in the years to come.

creamy

the
of

has

almost

makes

preparations,

most

net

sales,

liquid
and
compact
shampoos and lotions,
directly

largest
The

lion before taxes and $13 % to $15
million after taxes, equivalent to

The

share

common

stock

is

for
listed

on

New

York
Stock Exchange
currently selling around
$24, paying an annual dividend
of $2.G0 per share. The 4V2 % con¬

year

to be substantially

pected

the rate of the

than
when

the company reported

share

number

based
of

on

the

shares

$1.66

&

outstanding

plus

provide
level

&

volume from
acquisitions this should

broader basis for higher
and
earnings

a

The

longer-term.

stock

of MCS

to

.$1,297,826

are

to
net

to

outstanding Capital Stock of the Com¬
pany of the par value of $12.50 per share,
payable December 23, 1955, to holders of
record at the, close of business December
14,1955.
>
J. T. CULLEN,

November 29, 1955

BRAGA,

1655

,President,

-

Vanadium Corporation

of Direc
held this day, a quarterly divi'
of 25
per share and an extra
of

25

the

on

420

Lexington Avenue, New York 17

per

share

de¬
stock of the

common

were

Dividend Notice
At

meeting

a

held

November

itock

of

the

.956,

to

stockholders

p.

share

Corporation

DIVIDEND

November

following dividends

have

been

declared

A

regular quarterly dividend

$4.25 Cumulative Preferred

for

of

this

payable

January

Webber,

1,

rec¬

ord at the close of business

December

on

7, 1955.

Common Stock
A

quarterly dividend

$0.25

1,

share

per

&

of

the Com¬

on

B.

Du

Mont

to

stockholders

the

at

shares

ing

Convertible

December

closed.

Checks

mailed.

Wm.

dividend
outstand¬
Cumulative

5%

of

at

will be mailed.

o'clock

SHRIVER, Secretary

1955.,'

.

Preferred

Stock,

not

clared

the

dividends

ferred Stockholders of record

to

at

following quarterly
payable January 1,1956

holders of Preferred Stock of

the close of business December

record

15, 1955.

December 16, 1955:
Paul

Raibourn

at

the close of business

Series
Series B,

5%
Series D, 4.25%
Series E, 4.35%
Series F, 4.35%

be
be

diiMont

J. williams

on

Per Share

Treasurer

November 30, 1955

7, 1955.
will

PREFERRED STOCK

The Board of Directors has de¬

payable January 1, 1956 to Pre¬

of

close of busi¬

$1.25

$1.0625

$1.0875
$1.0875

VINCENT T. MILES

Treasurer

In All Phases of Television

Jackson

&

November 30, 1955

Co., Inc.; Smith, Hague,

Co.; Francis I. Du Pont

V'M

Si-

Co.; Laurence M. Marks & Co.;

INTERNATIONAL

Co.; Bache & Co.;

Eichler

&

Co.;

Good-

Leonard

& Lynch;

SHOE

Raus-

COMPANY
NATIONAL UNION

St. Loui>

New York, December 7,

per

1955

fire insurance

179TH

has

declared

a

quarterly

common

1955

to

stock

of

Eighty (80) Cents
the Capital Stock
Company for the quarter

extra

Cents

dividend of

per

Eighty (30)
share, both payable'

January 16, 1956, to stock-

U. S. AND

CANADA

at

the close of

business December 15, 1955.
^

Thompson

divi¬

OF PITTSBURGH, PA.

Common Stock
A

136'" DIVIDEND DECLARATION
quarterly dividend

of 60^
The Board of Directors of this com¬

per

share payable

on

January
pany

1, 1956 to stockholders of
ord

at

the

December

clared

close

of

15, 1955,

rec¬

business
was

de¬

by the Board of Directors.

STUART K. BARNES, Secretary
ANDREW W. JOHNSON

Secretary
IN

company

CONSECUTIVE DIVIDEND

ending December 31, 1955, and

15, 1955.

wm. E.

quarterly

on

holders of record

stockholders

record at close of business December

a

of

share

of this

on




3:30

today declared a cash divi¬
Fifty Cents (50^) a share

dend of
on

the

capital stock. This cash divi¬

dend will

be

close

of

business

December

12,1955.

Vice-President and Treasurer

/UKJ1£±A{
ytJJ/CLU^
/

Guaranty Trust Company
of New York

paid December 30,

1955 to stockholders of record at
the

Treasurer

December 5, 1955
December 6. 1955

15,

record

Checks

DIVIDEND

this day has declared a
of $.25 per share on its

Vice-President & Secretary

cash dividend of
on

fifty

capital

Laboratories, Inc.

Stock, payable January

1956

record

an

29,

of

February

QUARTERLY

The Board of Directors of Allen

of $1.0625 per share on the

Transfer books will

106th CONSECUTIVE QUARTERLY CASH DIVIDEND

share

payable

ALLEN B. DII MONT

LABORATORIES, INC.

Preferred Stock

$26,in¬

Reynolds

Dweficitrf Sinance Co:
per

A.

Directors

the

on

by the

Board of Directors:

dend

December

29,

of

dividend

LONG ISLAND LIGHTING COMPANY

NOTICE

The

day declared

$.25

of

1956.
D.

Dated

1955.

Board
a

declared

was

February 3,

m.

the
1955,

per

The Board of Directors has this

payable

of

29,

:ents

stockholders of record at the close

I

Directors

America

H. B. Pierce, Secretary

DIVIDEND NOTICE

of

Treasurer

,

stockholders

to

Co.; and Reinholdt & Gardner.

The Board

O'lA

dividend of 50? per share on the

a

meeting of the Board

a

cher, Pierce & Co.; Reed, Lear &

income.

payable

of business December 16,

ness on

with

Paine,

Moore,

interesting possibilities for growth

the Capi-

RIONDA

body & Co.; Lester, Ryons & Co.;

has especially

Twenty-five

Company, payable December 28,1955,

Brothers; Hornblower &

Bateman,

com¬

this day

un

nivinrwn

DIVIDEND NO. 234

'The Board of Directors has de¬

;

clared

The Garlock

clared

the

and

months

G. H. Walker &

operations
the

AND LIGHTING COMPANY, INC.

I

Curtis; Cruttenden & Co.; Hugh

Noble

augmented

an

the recent

of

eight

Johnson &

during this period.
I feel that
with anticipated construction work

THE SAFETY CAR HEATING

■0^

of

dend

Co., Inc. in the underwriting are

average

—|

on

dividend

to $1,375,609.

Weeks;

Secretary

1955.

tors,

company

1955,
Consolidated

I ehman

1955.

1955.

16,

December "5,

At

after taxes for the year 1954

months

5,

G. PACE

nail

and

cosmetics

any

Associated

ex¬

higher

nine

of

months

first

December
FRED

-J-p
December 6, 1955
"J COMMONDIVIDENDNo.318

mon

$26 through July 1, 1958. The
market.. is
around
$98V2.
Last
are

December

H. T. McMeekin, Treasurer

and

amounted

at

1955

12,

mestic

come

Chicago

1955

shareholders of record

December

1956 to stockholders of

the

profits for

22,

Stock,

vertible debentures, also listed on
the N, Y. S. E., are convertible

quarter

December

on

of

share on

1955,

28,

75? per share

concurrently by

paid

revealing sales
figures for the first time, reports
consolidated net sales, both do¬

415,983.

is

and

be

check

company,

eight

at

business

of record at the close of business on

/

foreign, have risen
from $18,991,000 in 1950 to $33,604.037 in 1954 and, for the first

full

per

outstanding,

B.

will

selling
through retail establishments.

Earnings are estimated in the
neighborhood of $28 Mi to $30 mil¬

per

of

Dated

of

The transfer books

through

or

sales

net

dividend

a

(25c)

Stock

December

,

OF

DIVIDEND

numerous

its

acquisi¬

tions.

$2.75 to $3.00
year of 1955.

tal

quarter of 1955, and an EXTRA

subsidiaries,
foreign markets, as
well
as
in
the
United
States,
where the company believes that

result

a

close

1956.

closed.

will

Street, New York 5

of Directors has

makeups,

in

as

Gents
'

50?" per share, for the final

OF

important,
in
are lipsticks,

greatly expanded volume of busi¬
ness, but also from the many ad¬
obtained

DIVIDEND

ol

enamels. These products are sold,

company's recent

declared

QUARTERLY

A

100

These record profits should result
not
only
from
the
company's

the

Wall

106

The Board

4Hih ttividend

toiletries, in general.

beauty

husiness

SUGAR COMPANY

opaque

cos¬

company

of

the

at

be

not

Packing Company

world-wide leader in
and

close

record

FRANCISCO

THE

METALS, INC.

to

be¬

riod in its

an

a

and

the

at

1955. Transfer books
Checks will be mailed.

of

January 13,
will

•

un¬

since

threshold of

a very favorable pe¬
history. With no further

of

enamel

The

vantages

MACHINE AND

"Revlon, Inc., organized in 1932,
pioneered at its inception in the
nail

American

today a dividend of twenty cents
per
share
was
declared,
payable
.January 27, 1956, to the shareholders

AMERICAN

creased production.

in

meeting of the Board of Directors
Phenolic
Corporation

a

of

JOHN R. HENRY, Secretary

possible
and in¬

operation

At

held

December

bring its Bronx and

Brooklyn operations together

NOTICES

•

York

banking firms.

plant will permit the

new

DIVIDEND NOTICES

AMERICAN

holders

the

be

to

Treasurer* Mr. deSelding, to

Law¬

pany,

The purchase

surveys.

company

In conclusion, I feel that Merritt-Chapman & Scott is on the

and

the

clared

offering, which is

equipment

and

der, Peabody & Co.

yoim«?er

DIVIDEND

sale

of

First

On November 29,

Johnson in Metuchen,

and

gineering

1932, has received
most favorable acceptance in this
country and is in use in 23 states.

mon

with

investment

used to complete payment
plant newly acquired from

a

stalled

and
third

Manufacturing
Division is Shoup Voting Machine
Corporation, which is one of Merritt's most promising acquisitions,
being one of the nations' two
major producers of voting ma¬
chines.
The Shoup machine first
company

stock

Johnson

armed

box

be

to

and

The

cabinets.

proceeds

company's

common

transformers, electrical and elec¬

over

comprise*

expected to exceed. $3,000,000, are

radio

loudspeakers

net

the

The

succeed Robert H. Austin of Kid¬

stockholders

of

heavy duty galvanized ware for
industry in the several manufac¬
turing plants; Utah Radio Prod-

per

at

succeeds

of

Corporation, to succeed
Rockefeller, Jr. of Dominick & Dominick;
Secretary, R.
Bruce McBratney of Wood, Struth-

Associa¬

offered by stockholders at
share.
The
remaining
shares are being offeree

The

the production of steel drums and

the

York

He

Presi¬

Ijams

ers &
Co., to succeed Edy^rd J3LdeSelding of Spencer Trask & Co.;

Avery

of Morgan Stanley
Membership of the Asso¬

Co.

directly, to cer¬
employees and only such oi
these shares as are not purchased
by the employees will be offeree
by the underwriters. •

there

of

elected

the

at

Vice-President,

Boston

tain

which

arid

was

per

33,900

ness.

in¬

the

Investment

New

associated
an

of

T.

Parker

rence

and 67,933 shares

company

being
$12

of

ciation

underwriting group that is offer¬
ing the 272,067 shares being sold

is
the

company

-forward to further sustained

selling

Reynolds & Co., Inc., heads

trailers for transporting both dry
a

by

Seebeck

the

of

j 101 833

stockholders.

manu¬

dent

tion

shares

F..

elected

were:

Maitland

banking firm of Smith,

Barney & Co.

meeting.

and

which ranks seventh in the

since

being offered, 272,067 shares
being sold by the company

are

Highway Trailer Co.

time

total of 373,900 shares of common

sion

the

first'

stock

included in the Equipment Divi¬
is

the

officers

meeting

Of Inv. Ass'n of N. Y,

organization in 1932, securities of
Revlon, Inc., were sold to the
public yesterday (Dec. 7).
Of a

For

man¬

most

Share

a

Other

Seebeck President

48

The Commercial and Financial Chronicle

(2460)

.

Thursday, December 8, 1955

.

.

Istration and "liberal" Senators, •

BUSINESS BUZZ

but

A ^
jljL § l\A/

Behind-the-Scene Interpretation*
from the Nation's Capital

'

actment next year are rated as

good.
The Labor Department, which
theoretically has no control over
state
workmen's compensation
commissions, is busy drawing

m

JL

1A/
/

WASHINGTON, D. C.—Presi¬
Eisenhower's White House
here

evaluated
other

Education

on

the

in

step

simply

as

enactment

by

an¬

ultimate

of

Congress

a

President first conceived

in

education
he
a

Education.

on

passed the resolution call¬

ing

last

culmination

the

state-wide conferences of

education

in

for the

of

too,

By tipping his hand

in 1954,
the
President may have acci¬
dentally contributed to the de¬
lay in the enactment of a Federal
program.
It was expected that

to

of dressing

the

up

characteristic Eisenhower

which

ner,

Federal

aid

would operate as ,a
gigantic, nationwide propaganda
drive to influence grass roots

Federal

money

meetings

.

break

and

local

When the Democratic opposi¬

notice

clear

put

thereby

was

intended

the

that

such
President
on

the

Administration

the

beat

to

draw,

to

a

1955

and

had to back

bill

Federal

aid

elements

of

program

construction,

but

oil

differing proposals of their own.
f

in

the

vent i o

have

education

in

n

sooner

the

had

been

"No

were

subject

prepare

active consideration of the sub¬

dent

quickly brought out divi¬
sions among supporters.
iWhile many southerners are
not nearly as hostile to receiv¬
ing
supposedly free
Federal
hand-outs as they have the re¬
putation of being, the Supreme
Court's desegregation
decision
is in the forefront of their con¬
ject

of

niust

used

be

as

device

a

races

desegregation
in public schools.

President

Eisenhower's

in

may

to its failure to enactment

1955.

In lieu

of

outright

an

system of Federal grants-inaid,
generally
a
mechanism
familiar

to

the

Congress,

the
President proposed an unfamil¬
iar and gimmick-like formula
whereby states would enact
statutes to avoid their

stitutional

or

own

con¬

statutory borrow¬

ing limits, and the Federal Gov¬
would

ernment

become

the

market for such doubtful legal
obligations, with only a rela¬

main

two

which

there

ment,

the

"The

thing

of

our

I

the

It

should

May Fail in 1956

possible

program

can

that

a

fail of enactment

again in 1956.
a

Although it was
change, the President in
opening message to
the

subtle

his

White

House

Education

Conference

indicated

an

on

unmis¬

takable shift in emphasis from




subsi¬

any

not

be

of

and

eral

for

clearance

by

central authority. We know

education, centrally con¬
trolled, finally would lead to
the

kind

of

fields which
will

never

icated

to

control
we

other

don't want and

have.
the

in

So

we are

proposition

was

to

control

Of
of

However, by the Housing Act
1954, several of the pieces
this program of
Federal

subsidies

were

tied

into

tio

that

question

the

Eisenhower

sincerity

of

posedly

;

desk

of

Washington

intimation that these two
tlemen

legedly evil machinations in af¬
fecting a possible down-turn in
building.
Neither

gentleman squirmed.

Instead they took
that

the

going

whole

firm stand

a

so

expansion

monetary

over

from

getting

turning into
both

also

out
a

of

hand

later bust.

made

the

point

was

sharp rises in the cost of
building materials, additional:

would only raise the al¬
ready rising cost of new houses
and

do

the

Eisen¬

of

control

by

the

Fed¬

activities

state

President

in

the

buyers

thereof

As it worked out, the Federal
Reserve and the Administration

that

with

out

should
be

a

1956

boiling

like

it

commitments

of

expansion.

The

commitment:

came sooner

than otherwise be¬

of the

Sparkman hearing.

cause

In

the process the Chairman
of the subcommittee and Leon

S. Labor Department would

under this bill disburse

sums

of

agencies
for promoting industrial safety.
The bill provides, however, that
state
labor
departments must
money

state

to

labor

conform to strict Federal stand¬
ards

as

a

condition

to

getting

committed

them¬

selves to the view that regard- /
was infla-

less of whether there

guarantee some mystically "de- Y
sirable level" of housing construction.

\This column is intended to re¬
flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" own views.]

this grant-in-aid money.

This

bill

was

previously

backed by the Truman Admin-

TRADING MARKETS

in

Fashion Park

any more

than any one

Congress is bound by
ing Congress.

Opponents

can

Morgan Engineering

a

preced¬

Carl Marks
FOREIGN

rewrite many

programs which started out in¬

nocently as aid programs de¬
signed only to get a specific ob¬
jective achieved with Federal

stimulus, and which ended

National

by

pre¬

up as

SECURITIES

50 BROAD STREET

TEL: HANOVER 2-0050

-

tion in the economy..as a whole,. ;
special steps must be taken to i

U.

sup¬

bound
any

has

been in the latter part of 1955,
the brakes will be held on the-

proposed "grant-in-aid'' bill to
promote industrial safety. The

Eisenhower,
is

vol¬

Keyserling

eternally, there
day another Presi¬
Mr.

.

commitment:
business

For instance, the Labor Department is getting set to back
next year with utmost vigor a

earth

successor

no

good.

ume

officials of

Federal

besides

that

; with

W. L. Maxson Co.

no

and

They

lives

dent

was

to prevent the boom

necessary

Indian Head Mills

on

was;

economy

strong and demanding
much
credit
that
control
so

strings at¬
tached. However, since no man
no

gen¬

expected to squirm

were

in the public view, for their al¬

the

Administration

offering Federal aid with

the

til "central control" in fact

discussed

:

to
listen
to
Randy
Burgess,.
Treasury Under Secretary, and
Bill
Martin, Federal Reserve
Chairman, explain why the Ad¬
ministration was currently
maintaining a tight credit pol¬
icy. There was some advance

came

his opening remarks to the Edu¬
cation Conference.

Every week there passes, two
a week,
press releases

over

un¬

eral

the

in fact, "central control" or the

to withhold these subsidies

play the hostility toward

municipality
agreed
to
complete
Federal
domination of its housing and
municipal planning.
n

Adminis¬

hower Administration do not dis¬

orie

! package, and the package was
| made deliverable within any
municipality only upon condi¬

Eisenhower

whifch

Other

hotly denied by the

that

to

called

Johnny Sparkman

a

credit

established.

local

In other words it has become

need

avail¬

now

knowingly and
intentionally, in the Housing
Act of 1954, asserted the power

to

to three

not

are

curious coincidence, it

a

tration

economic

young is primarily
the President stated.

will

subsidies

the

was

city does not get the money.

Opponents

By

programs were

ded¬

local,"

Therefore these Fed¬

so on.

release.

guarantees.

the responsibility for educating
our

improvements,

future

city specifically named in each

"liberals" of the time.

should

slums, of
of fi¬

from

planning,

able to "X" city, being the given

housing

is that the ;

re-housing

of

added spe¬

were

of

Government

or cen¬

slums,

inherently highrisk mortgages for re-housing
under-privileged,
under
gov¬

To these

forms

rent,
to
clear
rehabilitate
slum
areas, etc.
The idea that this
was, at the time enacted, part of
a
"conspiracy" of the Federal

his

controlled

nancing

housing, and Fed¬

subsidies

pay

agree¬

family and the locality.

decessor,

Federal

or

Federal official)
of planning, of elimin¬

anonymous

slums and rehabilitation of slum

slums,

upon

that

the

is

"public"

.

of

and

It

displaced

neighborhood

provide

quate" for those who could not

free," the President stated. '*
j
"It should be under the control

direct

subsidy.

can

told

young

those

to

to
achieve
specific,
objectives, to wit: To
provide housing deemed "ade¬

be

may be some

school

be

tions, enacted various schemes

designed

that education

was

tively minor part (at least ini¬
tially) going for admitted and
Federal

points

should

its

concrete

Presi¬
ration¬

his

President

first

education

to

own

given

ating

At first these

far in advance. One

Conference,

the

approaching this
have contrib¬

technique of
problem also
uted

of

the

the

answer,

having
so

opposition

should not be Federally
trally controlled.

They naturally fear
Federal aid inevitably

hasten

the

an

alization

sciousness.
that any

which

Federal Government is satisfied
that the given city has an "ade¬

program

and

dily provided the rationalization
for

lo¬

and

Initially and separately, over
a
period of years, Congress at
the behest of past Administra¬

ernment

Contror

Eisenhower

the

quate" (adequate in the view of

cial

Mr.

that

statement

the

in

follows

There

releases.

detail

an

areas.

so

Vice-President Nixon also han¬

re¬

the
the

quiescent
before
Congress this year.
And

and

of

some

Central

President

than they might

mained

of

eventual

i

Federal

states

to

the

illustration

an

"approved"

control.

eral

the

strategy

aid

to

dized Federal

Eisenhower's closest advisers.

principle, oppose Federal interaroused

all

theoretical

political

characteristic

those who, on

process

illustrated
of

amateur

the

hastily improvised

a

which

from

calities

approach

got into the act in.
the
Administration

the

school

mat¬

a

when

cropper

the

for

Housing offers
tion

Eisenhower

ings in 1955 on not only
Administration's "shoe in
door"

Controls Local Housing

Home

and

has

Agency

fact, the idea inherent in

1954

Democrats

of the Congress held hear¬

tees

Finance
the
planning of "X" city, named in
Housing

of this almost inevitable evolu¬

in 1956. As

appear

correspondents, saying that the

Federally

controlled mechanisms.

again

came

and

completely

virtually

taking two years of careful
propaganda approach to build
up for action not before
1956,

it were. Both the
Labor commit¬

as

Education

predict failure

aid

of

attemped

Democrats

the

to

not

active consideration in 1955 may

the

objective to his political reper¬
toire,

is

Federal

a

ter of

welfare

this

add

to

want

they

and

program in
but only to report that
many
of
the
same
conflicts
which developed when the leg¬
islation was prematurely given

governmental function.
tion

Sponsors of

education

to

-

lot of mortgage lenders and
builders and Leon Keyserling

1956,

enter

into this characteristically

in

from the Treasury.

comes

This

of

against having

Government

Federal

the

long-estab¬

down

lished prejudices

So
a

don't
how it is raised except that

care

it

program

a

problem. The housing
is in the eyes of the
building industry and
"liberals," the shortage of mort¬
gage money which is allegedly
putting a crimp in the volume
of speculative home-building.

broad and definite initial budg¬

etary commitment.

Sparkman
held a

week

man¬

avbid

to

appears

J.

last

problem

home

approach

coy

Ala.)

housing

scheme, in the

a

the state-wide and final Federal

such

(D.,

by the

seance.

John

"round table" discussion of the

Administration

the

cling

not intended

was

Senator

prin¬

on

Control

out of the House

engineers of this

of their systems.

future

Then,
still

for

to

if less clearly than in 1955, may

ilar character.

sentiment

strength

schools, lay and parochial, will
a
further relative handicap

sim¬

a

which

desegrega¬

their

see

conference,

week's

of

foes

add

Inflation

news

table" discussion of the housing
credit
problem
is
something

be

And advocates of private

ciple.

Con¬

gress

was

vention

White House

a

the

will

probably

will

it

1956,

fails in

program

Confirms

What is

those who oppose Federal inter¬

persuaded Congress to issue

Conference

.

Banking subcommittee's "round

the

tion

that year

In

1954.

.formal call for

which

leged to exist.

because

to local

benefits

under those statutes.

however,

the idea of Federal aid

Its objec¬

liberalize

to

Federal"

If

education.

is

local,
responsibility, to
make good this deficit in teach¬
ing talent and class rooms al¬

of Federal aid to local

program

The

men's compensation.
tive

and

inexorable

the

toward

movement

indirect to direct responsibility.

Vice-President

state

the subject of work¬

on

He talked as did

Nixon of it being a "state,

is

"model

proposed

a

statute"

Conference

the

Its chances of en¬

up

dent

until

Administration

along.

came

Washington...

nowhere

got

Eisenhower

•

&

Co. Inc.

SPECIALISTS

NEW YORK 4. N. Y.

TELETYPE NY 1-971

Riverside

Co.

Cement

LEHNER & GO.
Investment Securities

10 Post Office Square,
Telephone
HUbbard 2-1990

Bostpn 9, Mass.
Teletype
BS 69