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FEB 2G 1§S7
ESTABLISHED 1S39
iSsm
Reg. U. S. Pat. Office
New York
Number 5612
185
Volume
EDITORIAL
.
We See It
-As
Our Money, Capital
"In two messages you have pointed
Question:
out the
danger to the economy, if business takes
Professor of
profits or if labor demands too much
wages: In connection with the oil industry, as a
result of the Suez crisis, the oil industry has said
that it has to increase
prices, and many of them
have. Has it
attention as to whether
undue increase?"
is
justified
Answer:
I
come
or an
business
said
and
labor
.
developments
of
impact will be greater on capital rather than money mar¬
ket. Forecasts declining capital expenditures and more
vulnerable equity market.
:
by
Their
any manner or means.
long-term good is involved, and I am asking
them merely to act as enlightened Americans.
►
"Now, unless this happens, the
controls of some
and
firmly with so-called
kind, and when we begin to con¬
prices and allocations and wages, and all the
rest, then it is not the America we know. Now,
the reason that I am concerned about all this is
trol
long practice, their defense
any
as
conference on Wednesday of last
week. Almost simultaneously, certain business
leaders and labor spokesmen had some things to
say on the same subject. Walter D. Fackler, econ¬
omist of the United States Chamber of Com¬
Rodgers
Raymond
the
even
examples,
horrible
in
direct
manner.
no
expressed the opinion that "competitively
exercise the type
on page
Trust
26
New
DEALERS
tial
are
us
can
credit has been described as
The "tightness" has stemmed from sharp gains
in the aggregate demand for credit
rather than from a diminution In its
as
on
page
Actually,: the latter has in¬
supply.
creased
ure
little over the year ago
a
and
has
been
forged ahead of the supply, the in¬
fluence of the resultant scarcity has
been felt in both the bond
C. Canby Balderston
extent
more
of
the
impact on
difficult to judge, but
industrial expansion is
it has been affected also.
Continued
26
afforded
undertakings
by Professor Rodgers before
Conference sponsored by the American
in
City,
Feb. 4,
the 38th Mid-Winter
Bankers Association,
1957.
1 exas,
Jan. 28,
STATE
AND
State, Municipal
COPIES OF OUR
ON
THE FIRST NATIONAL CITY BANK
30 BROAD
ST., N.Y.
Burnham and
MEMBERS
15 BROAD
CABLE:
NEW YOBK AN3
5. N. Y.
014-1400
T.L.Watson&Co.
Exchange
CANADIAN
STREET
Y.
DIRECT
WIRES TO
IXmcnoTf Securities
MONTREAL AND TORONTO
Goodbody &
DAitAS
BRIDGEPORT
•
PERTH AMBOY
upon
request to
Unlisted Trading Dept,
(Room 707)
6rpora3ioti
Co.
MEMBERS NEW YORK STOCK EXCHANGE
<Scui/we6t COMPANY
Analysis
our
Stock
.
Teletype NY 1-2270
NEW YORK 4, N.
BONDS & STOCKS
Regular Rates
DEPARTMENT
K«« Corporation
Class a Common
Orders Executed On All
Canadian Exchanges At
Stock Exchange
BROAD
CANADIAN
SECURITIES
District Bonds
FIRST
BANK
coast
Maintained
Banks and Brokers
CANADIAN
Commission
25
Chase Manhattan
YORK 5
34 offices from coast to
1832
Members
New York Stock
American
the
TKLCTYBC NY 1 -MM
COBUBNHAM
ESTABLISHED
County ami
York Stock Exchange
120 BROADWAY, NEW
Teletype: NY 1-708
Bond Dept.
To Dealers,
Municipal,
Members New
DEPARTMENT
BOND
EXCHANGES
*
Net Active Markets
State,
Harris, Upham & C-
OF NEW YORK
Company
AMERICAN STOCK
STREET, NEW YORK
AVAILABLE
REQUEST
ARE NOW
CORN EXCHANGE
department
tends and Notes
FOR 1957"
SECURITIES
BANK
Agency
"MARKET OUTLOOK
BONDS
of
.
Public Housing
MUNICIPAL
DISTRIBUTORS
CHEMICAL
28
Idol.
REGISTRATION—Underwriters, dealers and investors in corporate
complete picture of issues now registered with the SEC and poten¬
our "Securities in Registration" Section, starting on page 34.
and
HAnover 2-3700
page
address by Mr. Balderston before the Southwestern Confer*
of the Mortgage Bankers Association of America and Schocf
Busihetfjf"*Administration, Southern Methodist University, Dallas,
a
INVESTMENT
bond
on
ence
of
UNDERWRITERS
Securities
telephone;
and mort¬
markets. In turn, it has affected
residential construction and possibly
school
building, although the lat¬
ter continues in large volume. The
gage
and
Municipal
fig¬
effi¬
'
U. S. Government,
State and
more
though it has been restrained, the
supply of credit has not been reduced,
As
the demand > for : credit
has
in
,
used
ciently. This is evidenced by the 8%
increase during the year in the turn¬
over
of
demand
deposits.
Even
mechan¬
serve
school bond rates.
During this past year,
"tight."
characteriza¬
Continued
address
York
SECURITIES NOW IN
securities
removing legal limits on mortgage and
♦An
♦An
individual businessman can
Continued
of
of accepting higher
of real goods price rise. Advocates
interest rate instead
I propose to tackle this problem
Paraphrasing the words of a popu-
.
merce,
worst
opposes govern¬
credit demands. Prefers free
markets and anti-inflationary weapon
tions, an internationalist!
Nonetheless, on the old theory
that no one is entirely useless, as
press
Mr. Balderston
of bank credit to meet all
egghead, or a long-hair, or that
an
concerted action and tim¬
controls and resort to the price inflationary route
a
most devastating of all
the Presi¬
foregoing colloquy took place at
with stable prices.
speaker Who attempts to cornel
to grips with international develop¬
ments hazards a great deal. In fact,
he runs the risk of being classified
that
■
The
same,
highly ^fveioped
ism has become so
throughout the whole economy./
dent's
ment
purchases to olfset depressing influence of world
on our economy, and opines Middle East
intelligent man can see the
direction we will have to go, unless,ther6 is some
wisdom exercised not only in government but
I believe
that
ress
international developments have a direct,
frequently heavy, impact on our internal political
and economic conditions, few Ameri-r
cans are willing to face up to world
realities. They feel they have prob¬
lems enough at home without'having
to worry about issues and incidents
halfway around the world! Through
then has to move in more
are
ing to achieve an economy running at high speed,
out overstraining capacity, in pursuit of economic
Although
United States
and emphasizes the importance el
their coordination in terms of
market
to be altruistic
the
policies
cise their
own
j
objectives of monetary anil fiscal
underestimated
Rodgers believes Reserve authorities made use of open
discharge their responsibilities, and exer¬
authority in conformity with the needs
the United States, I wasn't merely asking them
i
Federal Reserve System
dle East's impact on
must
'
Vice-Chairman, Board of Governors of the
Reserve official claims
European and U. S. economies and, in particular, eval¬
uates its impact on our money and capital markets. Mr.
exercise their,
must
By C. CANBY BALDERSTON *
<
:
American business in 1957 has been
by most executives and their economists,
Banking Professor sets forth impact upon the Western
,
Now when
.
Banking:,«New York University
Asserting "economic developments in the rest of the
world are hastening the end of our boom," and that Mid¬
to your
(By the President)
Of Federal Reserve Policy
Markets
By RAYMOND RODGERS*
undue
this
Pric^ 40 Cents a Copy
7, N. Y., Thursday, February 14, 1957,
115 BROADWAY
1 NORTH LA SALLE ST.
NEW YORK
CHICAGO
40
Exchange Place, NewYork5,N.Y«
Teletype NY 1-702-3
WHitehall 4-8181
IRA HAUPT & CO.
Members New York Stock Exchange
end other Principal Exchangee
11% Broadway,
WOrth 4-6000
N. Y. 8
Teletype NY 1-3860
2
The Commercial and Financial Chronicle
(774)
For Banks,
The
Brokers, Dealers only
Security I Like Best
This
Forum
A continuous forum in which, each
Try "HANSEATIC"
participate and give their
reasons
for favoring
(The articles contained in this forum
MARKETS
FOR MORE
week, a different group of experts
advisory field from all sections of the Country
In the investment and
they to be regarded,
are
not
particular security-
a
intended
Our
full
Senior Partner, Benjamin.
facilities, long
ex¬
Hill & Co.
New York City
F
,
£.
"
Members I\ew York Stock
.
perience and
vate
nationwide pri¬
wire system ^provide you
broadest
the
with
It
New York Hanseatic
Established
PHILADELPHIA
•
Wires
to
Electric
will
next
few
ness
1920
to
wit¬
re¬
of
the
various
ex¬
York 5
CHICAGO
SAN FRANCISCO
research^
ner,
Benjamin, Hill & Co., New
City. (Page 2)
this
RIGHTS & SCRIP
Meinoers
120
of
Westing¬
Electronics.
largest com¬
the second
within them.
Stock Exchange
Exchange
8tock
BROADWAY, NEW YORK 5
TEL. REctor 2-7815
while
a
to
is
consider
some
calamity hits
unexpected bad
side effects of a single antibiotic
—,—7 V
:
~
v
product broke the 7o-ye<u .olcl
the
.
-|
Air Control Products,
Inc.
has
that
has
golden opportuni¬
stances offered
the
including
equities,
Alabama-Tennessee Natural
Gas Company
First
Favorite
-The
Trading Markets
t
Aerovox
Trailer
B
j
J
F#|y
Vita Food Products
ST Wall St., N. Y.
|
the
of tangible
flow
steady
fairly substantial; in the
atomic
field.
Westinghouse
has
become by far the leading factor;
as to appliances, the company ap'pears to have already regained its
of
the
market
Ristine
Members
New
&
Co..
York
New
Stock
colume of business
foctpgt
is
is
cf
ui
one
uuc
ccniD£inics
growins;
in
is
some
^
5 36
• —
data ■"
processing
...
and
—
i.-_-
4.53
4.78
SI.47
S3.04
current
information
-
write
or
Established
Home
Office
Brokers
111
----
for
used
although
and
developing
is the fsct, th3t Rsdistioo eQuin.-
&
Tokyo
1897
—
70
Investment
Broadway. N.Y.6
r
Branches
Bankers
COrtlaadtT-SCBB
current
fiscal
year,
which
ends
Boms Bros. & Denton, Inc.
37 Wall
Street, New York 5, N. Y.
UndcriCT iters—Distributors
Dealers
Investment Securities
is being tested for use
in the
-
Earth satellite nmrrram
program.
In
Radiation's growth, as shown in
,
the accompanying table, has been
'
Canadian and Domestic
phenomenal. Its future, however.
Aui 31, sales is even more promising,, owing to
nearly the fact that digital systems are
ouadru pie. rapidly coming to the fore iir the
Volume
is
guided missile program because of
estimated at
their
S8.5
and
million,
which
compare
$2r4
in
will
with
million
fiscal
1956.
inherently greater accuracy
handling
data
What
s
•
more,
earnings
Edward K. Hobby
are
also
soaring.
i
n c o m e
Net
c o
u*l d
reach
per
drawback
to
an
an
even
capacity
as
compared with analog data units,
in
-
a
j-egard to the statistical table,
m0st significant fact is that the
alwavs
has
company
been
oper-
ated
profitably.- Unlike many
other young electronic engineerjng firms, which may be long on
scientific talent but short
ness
Radiation appears to
acumen,
prosperous balance
two.
Perhaps the
a
the
°" a contract completion basis,
company's greatest asset, however, ris its ability to attract top
up research
and
engineering
per-
sharply from $218,000, or 40c per
share. The outlook over the fore-
Sonnel.
De^Dite
an
extremely tmht
?ngi£lrs
i» for
of $20 million
J
01
.V°?an?e
is likely
more
'
.
m
Jwk-
marilv
.
"ra il
' r
^ aP„h
the design of high
with
such as complete telemetry systerns, data processing systems, re-
mar-
since
the
company's
price
one
of
securing
new customers.
it's
smart
to
your
place
advertisement in
Hadiation has managed to expand
its
staff
to
more
than
and
150,
hopes to increase this number to
20(r d
•
th
Dresent vear proof
THE COMMERCIAL
attracted
FINANCIAL
tt%aYbreT ThV persminel
to
subsidiary
hi
h
Jwo
are
So
inception,
Radiation
the-
is
its
Dikewood
new
^'
reCentlv
AND
CHRONICLE
Com
of the "white sale" (business con-
at
•
i
used for testing aircraft, jet
nuclear nhvsicists
engines and guided missiles, the- 1*°
nlS
guidance and control of the latter, si0n of the Western Electric
Co
ago
is
the most useful tools in
share, depending on-delivery of
some' contracts that are handled
corders and associated units. These
years
Advertising
busi-
on
better
two
appear to be stirring due
improved Japanese economy.
now
Yamaichi
the
speed digital handling equipment,
.
of interest to note that
tracted
practically
at
Securities Co., Ltd.
the
uic
T._
avionics.
the
1.92
2.30
remaining
Btationary levels for three years
Call
testing commercial aircraft. Jnd cative
of its pioneering
position
v*
^
rapidlv expanding fields of cigital ment
this
aS«T;,red
}0 eXPa"d t0 ,a
billion from last year's
is
2.00
application,
military
Exchange
,
Inc.
me*
STOCKS
after
company's products are for direct
City
Radiation, Inc.
Radiation,
nauiauuu,
JAPANESE
For
systems and equipment since its
incorporation in 1950. Most of the
York
in
earnings improvement at
this stage is the continued effect
%
earnings
Director Investment Research
P.
offices
Average annual
EDWARD K. HOBBY
F.
branch
to our
evi-
between
$lJi,bi!lipn
—
-
have struck
y
4 95
-
*vls Year, or about 70c to 80C
The total
3.88
1.45
.1
1954
to
.-deuce pointing to the reestablishment of the organizations ad-
inventory
business continues to
share
1.43
—
1953
recognition
increasing
aPProxlmately $400,000 to $450,000
important
Films
Gen¬
1949
the defense
It
J?.
Official
3.59
1948
ketwise: for another, investors are
75
after
cents
"Lifo"
record $2
Tel. HAnover 2-4850
1.10
1947
other
4.03
earnings,
instances, with promotional
effort continuing
1:1
high gear,
1930
.65
'4.23
many
ESTABLISHED
$2.05
-.50
charges, the dividend $2, and the
stock 5242. Indications now point
to a steady and fairly rapid re¬
covery of the company's earning
power. The order backlog seems
to assure a capacity volume
in
most heavy items well into 1958:
former
3reme«aComponi)
.65
'
1175
as-My
be
Botany Mills
S
1952
-
LD 33
Riverside Cement
latest
10
were
1945
.1946
1.60
Stock.
for
cents
WX
1950
giving
wires
may
-company's
1956
for
Lynchburg, Va.
fa¬
thins,
one
,
Mobile, Ala.
Direct
to
GE
1051
For
just before the strike, were run¬
ning over $5 per share and the
dividend payment was $2.50. Tne
stock was 85. Now the earnings
Scott, Horner &.
Mason, Inc.
T.WI.T.
Co. .stock
esting.
the
Electric.
Westing¬
picking
am
Electric
house
Colony Life Insurance Co.
Tele. LY 62
I
timing
inter¬
stock appears to have established
a rather firm technical
base mar-
experienced investor.
Therefore, because of merit and
Virginia
many
highly
is
strike
latter's
decade
of the
the
over
beginning
the
preceding
down¬
recent
price trend of
NY 1-1557
New Orleans, La. - Birmingham, Ala.
Record
Comparative
record
earnings
per¬
compared
Exchange
York t, N. Y.
HAncwer 2-0700
-
following comparative
General Electric-Westinghouse
selling
thrdlighbut this period,
this
Stock Exchange
Stock
19 lector Si, New
-
The
years,
under
been
ties to the
Bank of
two
American
the
It seems to me that
is reasonably priced at
10-Year
A
disap¬
noteworthy that its price
has
been
essentially
i
|>;f^e'rTPav^s
^* <T*S stock. abou1
3a%. These unfortunate circum-
Trading Markets
'tne^Yast
ih
;
stage for sound investment aiyi.
substantial capital appreciation.
Electric.
various
but it is
a
industrial company. For
example, the Iranian Oil crisis a
few years ago depressed Standard
Oil of New Jersey stock about
also,
General
the
.pressure
leading
35%;
of
case
stock
eral
hardships caused
by one of the longest strikes in
the country's history. Every one
in
the
leading
M. S. Benjamin
Members
fields.
York
Members New
]
stoek
of
vorably with
the two years of
flfcpONNEIL &f0.
\a J,,!,
pur¬
tw
that
Steiner, Rouse & Co.
City. (Page 2)
vanced position in many phases of
the growing electronic and atomic
_
Westinghouse obtains
SI.60 of sales per dollar of market
price versus onlv 68 cents of sales
ward
Another; factor
Since 1917
im
-
0
chaser
formance
to
areas
many
.
sideways for over a year—a
in these fields and first in
pany
York
only-
factor^/west*
behavior
En¬
is
house
against
as
.,g
f
Jtance since
*
i
mo?n
it means
the
than
and
ergy
search, F. P. Ristine & Co., New
S34 for General Electric, judical- "r1
.situation
at
era
Westinghouse
Bought—S old—Quoted
Re¬
Investment
of
Director
pointments and uncertainties ap¬
pertaining to, the Westinghouse
i se or
Atomic
Specialists in
0^.
Senior Part¬
Radiation, Inc.—Edward K. Hobby,
equivalent to S100 in case
are
Reflecting
more
mankind
ing
in
Westinghouse.
No age.has
Principal Cities
fgHMIII
York
the
in
around
compared
$45
Benjamin,
Louisiana Securities
Co.—Mau¬
Electric
S.
York
^or Genet al Electric.
Sales per common share outstand-.,
the
lab¬
oratories
pr om
American
in
taking
"benefit
New
wish,
place in the
offered
Private
be
the
now
Exchange
Teletype NY 1-40
•
'
periments
120 Broadway, New
BOSTON
special
my
sults
Member
Stock
WOrth 4-2300
is
years
Corporation
Associate
Exchange
category of economics, that all of
the stockholders of Westinghouse
market coverage.
American
,
Westinghouse Electric Co.
possible
is
Westinghouse
Alabama &
rice
Better and faster
MAURICE S. BENJAMIN
Week's
Selections
Westinghouse
to
.Thursday, February 14, 1957
.
Participants and
Their
be, nor
offer to sell the securities discussed.)
as an
are
.
formed
bv
25
Park
Place, New York
7
formert^
—
Doman
™sS1 factor1^ taheVecrom.fahev- ^ whefverfeollection and ha""
profit experience is exnected to
8
"formation at high
Helicopter
Acoustics Associates
reach
Brown Allen Chemical
Atomic Fuel Extraction
Philippine Oil Development
2-8570—Teletype JCY
Direct Wire Dlgby 9-3424
but
its is likely to show a
consistently
119
speeds and extreme accuracies is interest in Dikewood. while Radiarequired. Radiation is the recog- tjon maintains an 80% interest.
nized leader in this type of work,
division will act as a con-
in
parison,
General
Electric
is
now
selling at 521/2 with 1957 earnings
indicated at about
year's estimated
dend
rate
is
$2.75
$2.50;
$2u Net
vs.
the
on page
.
.
of
earnings per share probably
starting the year at around $3 and
ending it at about $5. Finances
Continued
having produced highly advanced
rising trend, with the annual rate
good shape relative to fore¬
seeable capital needs.
(In com¬
Exchange PL, Jersey City, N. J.
HEnderson
peak in the first half
taper off rapidly thereafter,
Thus, the pattern of interim prof-
are
CAPPER & CO.
1
a
will
Dr. Sheldon H. Dike and Dr. Walter D. Wood. Each has a stock
STATISTICAL TABLE
(000's omitted)
Year
Ending
Sales
1956_._..,
1954_____:
Earned
To
ot Sales
Net
$445
19.1
$219
$0.40
379
21.0
187
0.34
23
0.04
-
493
42
last
1953
296
46
15.5
17
0.03
divi¬
1952
215
43
20.0
21~-
0.04
13
10.2
10
0.02
worth
of
1951
-
8.5
;
,
128
f
,
'
35 Industrial Stocks
Per Share
1,805
$2,337
1355
Net
OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
18-Year Performance of
Pre-Tax
Aug. 31
8
N. Q. B.
POLDER
ON
REQUEST
National QnotatioD Bureau
-
46 Froot
York 4, VL Y.
Volume
185-
Number 5612
.
.
.
The Commercial end Financial Chronicle
(773)
INDEX
Investing in the
Articles and News
Aluminum
Industry Today
Page
World Developments and Our Money and Capital Markets
By DONALD B. MACURDA*
—Raymond Rodgers
.——
Cover
—„
FEBRUARY 14th
Partner, F. S. Smithers & Co., New York City
The
Terming himself "an incurable optimist on the [aluminum]
industry's long-term prospect/' Investment banker details
market penetration figures and notes aluminum's consistent
•
the prerequisites
.
decades ahead."
Mr. Macurda reviews aluminum stocks'
for
*
.
.
.
increased, demand
...
What, Why and When of Federal Reserve Policy
—C.
Canby Balderston_
Don't
Cover
—Donald B. Macurda
in the
performance, whiclr he believes should interest long-term
or financial fund manager, and points out there are
only 10 common stocks actively traded in world security markets. Doubts the industry is overexuberant in its demand
projections, shows how quickly capacity can accommodate
itself to demand changes without government aid, and explains
"break-through" in auto, shipbuilding, building and construc¬
Anatomy of the Price Inflation and Steps to Thwart Further
investor
-
The year 1956,
sor
1955,
for the
like its predeces¬
outstanding one
industry. Pro¬
was an
aluminum
duction and consumption, both in
the Un i t e d
States
and
in
—John L. Gaunt
rec¬
heights
new
as
uses
estab¬
were
Continuing Foreign Aid in the Years Ahead—William L. Batt~ 14
Despite this extra market veloc¬
ity, aluminum stocks were still
able h> show respectable net gains
Independent Retailer Today—Roger W. Babson.—
net gain of 4^2 points,
Kaiser Aluminum &
common, a
of
Aluminium
net advance
5.1%;
lished and
Chemical Corporation common, a
older markets
net
more
deeply
penetrated. In
the
United
gain of 4% points, or 11.6%;
and
Reynolds Metals Company
common, a net gain of 9Vi points,
A. Howe
URANIUM
12
.
UNITED WESTERN
MINERALS
15
:
SAN JUAN RACEWAY
There Has Been No Mandate to Encourage
Tragedy of Infla¬
tion—Perry M. Shoemaker
——
Common & V.T.C.',
17
_
STANCAN URANIUM
Wages, Productivity and Inflation Discussed by First National
City Bank's "Bank Letter"
23
„
J.F.Reilly&Co.,Inc.
C. H. Haines Questions Existence of Federal Budget Surplus
Members
(Letter to Editor)—
Salt Lake City Stock Exch.
Spokane Stock Exchange
25
—
18.2%.
or
these
States,
Policy—Jarries
setback.
Shoqldi Be Qur Money
It
of course, be argued
that the year-end price is a rather
were
accom¬
arbitrary cut-off date, yet it is as
Donald B. Macurda
plished de¬ good a vantage point as any to
spite strikes, cast up the market accounts and
and without material dependence measure the progress (or lack of
on
government stockpiling calls progress) made. The fact is that
or
increased
defense
require¬ the aluminum group of stocks,
ments. In the rest of the Free when
viewed from a net gain
World, new records were achieved viewpoint, either from year-end
or
mean
even though industry had to con¬
yearly prices, have ac¬
tend with rising nationalism, quitted themselves with honor in
the
1956
market
place. On finan¬
shortages in energy supplies, for¬
eign exchange problems, and pro¬ cial commentator, in reviewing
tective tariff barriers. It was a the action of 35 major common
year when the industry more than stock groups last year, pointed out
that 22; or 63% of these, wound
ever was strictly, on its own.
;
It was also a year of further up the year at a lower level, one
remained unchanged, and only 12
price and wage increases; of im¬
were
higher.
Six groups were
position of inflationary controls;
of substantial additions to raw comparatively strong, and one of
could,
Many Questions, But No Answers (Boxed)!
42
25
material, chemical, smelter, and
fabricating capacities; of new
capital program announcements
involving hundreds of millions of
dollars; and of supply in-several
countries temporarily catchirig up
with
Now, for those who have
their
aluminum
•For the aluminum
a year or
After
"market weather.
investor
30%
highs, this may be
small comfort; but for the longterm
was
shareholder,
rather heavy
excess
an
enthusiasm
moved
akpninum stock prices to new and
"ipTecarious heights in early 1956,
these
shares, along with other
See It
(Editorial)
-
Bank and Insurance Stocks—_
Business Man's Bookshelf
investor
or
financial
21
.
-.1-—„
—
Coming Events in the Investment Field
Dealer-Broker Investment Recommendations
erally
*An
tbe
fast
as
brf ?the
address
Mid-Winter
the market gen¬
upside,
by
Mr.
Trust
that
and
Macurda
before
Conference of
the
more
rewarding
than
in
As ,to the problem, of "Investing
the Aluminum Industry To¬
Pacific Uranium Mines Co.
From Washington Ahead of the News—Carlisle
—,
Li———
—
.
Wilfred
Observations—A.
18
a bit jn time so that a balanced
perspective can be reached. For
all of us, we sometimes become
Metallgesellschaft
(a
leading
European statistical organization),
irt its introductory remarks to its
1
Continued
on
page
:
Securities Now in Registration.
NaabvUi*
-
•
••
,
Railroad Securities
t.
■
!
,...^,3$
,' '1
)t\
l
Class"#"
37
29
,
The Security I Like
Wallace Streete
16
Best
The State of Trade and
Chicago
Schenectady
•
♦
Now Around $5.00
2
....
Industry
An Outstanding Purchase Because:
6
Steady growth
1
Weekly
COMMERCIAL
Drapers* Gardens, London,
land, c/o Edwards & Smith.
Place, New
2-9570
25,
.
.
Every $400
D.
1942,
Possessions,
DANA SEIBERT,
President
Every Thursday (general news and ad¬
vertising issue) and every Monday (com¬
statistical, issue
records,
corporation
--
market .Quotation,
news,
bank
clearings,
at
the
post
dividends
office
at
New
of March 8,1879.
in
United
Territories
Union,
$60.00
U.
S.
Members
of
year;
In
per
of
Canada,
$63.00
per
Countries, (67.00 per year.
Other
Publications
year.
y Other
Chicago
Offices:
3,
Hi.
135
,
South-La
(Telephone
STate
Salle St.,
2-0613);
Bank and Quotation Record — Monthly,
$40.00 per year. (Foreign postage extra.)
Note—On account of the fluctuation* In
the rate of exchange, remittances, for for¬
eign subscriptions and advertisements must
be
made
in
(if retained) and
We
look
to
en¬
Aber¬
New
York
funds.
projected
program
of
ac¬
quisition to increase cash profit
and
to
add
to
intrinsic
value of stock.
Send for FREE Report
<
.
stat£ and city .news, .etcJ,
deen's
inflow
States,
and
Dominion
Other
Thursday, Feb. 14, 1957
^t|iows a 6-year gain of 82%
^including cash dividends, stock
hancement.
Subscription Rates
9576
SEIBERT, Editor As Publisher
Pan-American
WILLIAM
Eng¬
second-class matter Febru¬
York, N. Y., under the Act
York 7, N. Y,
to
as
Subscriptions
HERBERT
C.
Copyright 1957 by William B. Dana
Company
Reentered
DANA COMPANY, Publishers
Park
E.
and
CHRONICLE
ary
7
.
invested in Aberdeen Petroleum
44
Beg. U. S. Patent Office
Worcester
Listed on American Stock Exchange
Corp., Class "A" Stock in 1950
FINANCIAL
Glens Falls
.'
-ffi
'
Securities Salesman's Corner
The Market... and You—By
■.
UtrdaM Petroleum
-^rrirw^-—H
Prospective Security Offerings
plete
•,
Direct Wires to
32
TELETYPE N. Y. 14
inc.
Exchange PI., N.Y.
27
,
v
ST., NEW YORK 4, N. Y.
•
40
Philadelphia * Chicago * Los Angeles
40
Washington and You
Members New York Stock Exchange
•
19
—.
most recent annual issue of Metal
Spencer Trask & Co.
Boston
Mackie,
HA 2-0270
4
.
,
Public Utility Securities.
REctor
'•
&
Teletype NY 1-1825 & 1-4844
25
-
Singer, Bean
8
.
May___
Our Reporter on Governments
WILLIAM B.
Albany
41
._
News About Banks and Bankers..
PREFERRED STOCKS
TELEPHONE JHAnover 24300
10
42
1
1
NSTA Notes
The
25 BROAD
Bargeron
Indications of Current Business Activity
Published Twice
specialized in
10
„
day," I should first like to go back
City, Feb. 5, 1957.
have
Hycon Manufacturing
Credit Weapons"
Our Reporter's Report.,
other sections of the market.
American Bankers Association, New York
For many years we
McLean Industries
8
Einzig: "Disappointing High Bank Rates and Alternative
,
as
Aztec Oil & Gas
44
—,
would have been possible in most
prime growth groups, subse¬ so concerned with immediate ob¬
quently have shown a persistent stacles in the
foreground; we for¬
downtrend pattern, with cumula-.
get the general terrain that is be¬
tive losses from their highs ex¬
ing traversed.
ceeding 30%. It has been said that
aluminum,
Tremendous Recent Production
equities
during
the
Growth
long bull market have advanced
twice
44
fund
the net behavior of this
through the close of 1956
far
HE 4-8504
•
Wires to Salt Lake City & Denver
Cover
.
seen
lose
Teletype NY 1-4643
Exchange Place
Jersey City
As We
from the 1956
group
of
stocks
1
Regular Features
Mutual Funds
manager,
demand.
Stock Price Fluctuations
it. has been
aluminum.
was
Broadway, New York 4
DIgby 4-4970
over-all gains
these
i
STANROCK
What
Limited registered a
in 1956 of 12J/2 points, or 11.6%;
Aluminum Company of America
ord
GULF COAST
9
.
they declined with the same rela¬
tive rapidity during the present
value for the year.
4-6551
LEASEHOLDS
7
Enlightened Capitalism Today and Coping With Inflation
Free
reached
6
.
Currency Outlook: 1957—Franz Pick_____
in
World,
Telephone: WHiteball
5
Foreign Trade Outlook for 1957—Walter H. Diamond—
the rest of the
Dept.
WALL STREET, NEW YORK
'
Rise—Jules Backman
tion and other fields.
valentines
Obsolete Securities
4
—
99
ket
us
they're obsolete!
3
__
Florida. Currents—Ira U. Cobleigli——
mar¬
send
—unless
Investing in the Aluminum Industry Today
increase in its share of the nonferrous market which has "all
.
3
General Investing Corp.
Members
American- Stock Exchcagg
to Wall Sf«, New
York 5 • B0 9-1S00
4
(776)
The Commercial and Financial Chronicle
Florida Currents
lion realized
on
the urgency
for future financing.
With
By IRA V. COBLEIGH
05-70%
have
Enterprise Economist
a
few lines of comment
utilities
of
Having
seasonal
just
from
to the
a
seashore
excellent
with the burgeoning Patrick Air
Force Base, and 13,000 civilian
indicate-
the
respondent is,
Florida,
your cor-
a?ain,
once
up' guided missiles; Vero Beach,
the Dodger incubator, the lagoon-
enthusi-
Intimations
four
to
semipen-;
haven
diving i
ro m
and
driving!
Jsnow.
Those
ami
Palm
or
Beach
in
plane
Mi-:
f
r o m
paltry
a
hours miss the un-
folding of the countryside which
train
or
car
a
ride provides. There's
bustle of
Jacksonville—rail-
est
cattle
and
grower),
rapidly
expanding electronic, aircraft, and
shipping enterprises — and, of
course,
tourists,
700 families a
,
most at the million kilowatt
its
fishing
boats,'
Naples, the Tamiami Trail, and
Key West, the Truman hibernating
hideaway.
as
Or you
might follow the East
Coast down from Jacksonville, to
historic
St.
Augustine, Bunnell
where they make cement out of
cochina shells; Daytona with its
beach
equally
to
ingratiating
bathers and hot rodders; the In\
dian River orange country, Cocoa
companies we prom-
lse<i to talk about,
,
Florid*
The
first
in particular.
Power
takPe'
up
Florida
Power Corp., which now
provides electric service to 190.000
customers
central
in
northwestern
Florida
in
an
and
area
com-
prising roughly one-third of Florjda. The large cities served are
Clearwater
Gross
and
St.
in
revenues
neriod
$21
1950-55
Petersburg,
the
six
year
doubled
from
to
$42 million.
Since
generating capacity has
T
js
As
expanded
580,000
from
by the
117,828
end
of
1946
been
k.w.
to
al-
about
share.*
$2.50
per
FORECASTS OF
but
STOCK
natural
a
proposed
pipeline .from
Louisiana to Florida may
bring in
PRICES
like business
be
can
very
budgets: they
helpful
specific and based
not.
influenced
on
by
only
if
analyses
wishful
thinking!
15-page
Appraisal
of
the
24th
Annual
Outlook
for
Business and Stock Prices em¬
phasizes these basic principles^
It also features the reverse side
of the studies which had led
to
expect
a
us-
major bull market
high at around the 520 level.
(See Chronicle, Feb.
j
2,
1956.)
A copy of this study will be
sent
to
you
upon
receipt
of
your check for a trial subscrip¬
tion to our weekly BUSINESS
AND
INVESTMENT
Service.' (Annual
TIMING
subscription,
$60.)
Send your check
for $10 for
3-month trial, or $20
U
for
6-month trial to:
a
percentage^ of
Florida Power
sales.
a
residential
does
quite
well along those lines with
about
45%
of
sales coming from this
Moreover, average resi-
source.
dential
(1955) was substantially above the national average
of
Our
by 1958
utility investors favor
gas
Many
nigh
are
now
use
2,751 kilowatt hours. The
age
home
Corp.
line
hours
in
on
a
Florida
aver-
Power
used
3,043
kilowatt
1955, electricity being
not pnly for lighting, appliances, radios and TV's, but for
water
heating
and
cooking as
welL jTbe company- has pioneered
in the heat pump
field, and sees
a brightfuture for this unit
which
can either
(and interchangeably)
heat
or
cool
a
house
electrically,
Each
such
unit
installed in a
standard 5-roOm house should re-
quire $150 to $200
rent. -Twenty-five
oumps
the
are
on
in curhundred heat
a year
stream
and
instal-
now,
company looks for new
lations at the rate of
5,000 a year.
The balance sheet at
Sept. 30,
1956 showed $100 million in
debt,
$23,500,000 in preferred stock and
2,558,127 shares of common now
selling at 53, paying $1.80 to yield
3.40%, supported by 1956 earnings of about $2.90 per share.
Rapid expansion of plant has
required six
ances
ANTHONY GAUBIS
& COMPANY
L
Investment Counselors
\
>
!
122 E. 42nd St., New York
17
-f
have
common stock issuthe past decade.
These
all been well received and
in
even on
these larger amounts out-
standing, earnings and dividends
have advanced
oresent
satisfactorily. The
dividend
is
50%
higher
than
well' aware,
sure,
the
I
is
management
unreasonable, PRO¬
also, restricted to ap¬
number
same
to
submit
If
you
would
be
of
words.
Wilfred
A.
the
non-thinking
'
•
that
both, the
-
rendering
stockholder
and
management
/
-verbiage.
to
such
-
I
cause,
believe
basically that consideration of an effective
stockholder's proposal can, if at all, only be secured
through the notice of. meeting and proxy statements, and unless
they are included therein, may be ruled out of order and denied
the
a
all consideration.
Under
in
.
its
.•
.
the present
material
lay stockholder
'■
.
statement in
support
of
any
'!»*
'
<.i
«:
lack
of
restriction
any
""
'
»•(.:/•»
''
■
More of the Double
information
proposer
cautioned
of the
of
the
the
to
as
'
on
1
'
>■*«'-
'
Standard
,
consult
with
him
even
It
is generally assumed that the chief purpose of
requiring
make
to
-
material
ments
sure
investment
banking
Boston, New
York, Hartford, and Portland and
Bangor, Me., has been admitted,
effective Feb. 8, to membership
in the New York Stock Exchange,
the Boston Stock Exchange, Mid-
Light property and the $10 mil-
can
a
member
of
Exchange, and AmeriExchange (Assoc/).
a
that
the
•
statements
made in the
proxy-soliciting
Particularly where such state¬
advanced by minority stockholders,
complete and true.
are
relate
to
proposals
the
one way in whicn the Commission* can
insure the truth and
completeness of the comments made by the management in relation to such proposals is to permit the proponents of such
pro-
;
posals to become acquainted with 4hem before the time of mailing;/
If the Commission does not follow such a policy; it creates a con-
;
\ Continued
.
t
,
*Ct. Stock
Market
'
Subcommittee
,
eighty-fourth
of
the
congress.on
We
on page
are
S. 879.
3;,
part
pleased to
pp.
160O
et
seqv
announce
July 5,
1956.
that
JAMES B. McFARLAND
is
now
associated
with
our
Trading Department
.
STROUD &
COMPANY
'
INCORPORATED
PHILADELPHIA
NEW YORK
•
PITTSBURGH
SCRANTON
♦
•
ALLENTOWN
ATLANTIC CITY
•
LANCASTER
}
■
<
16
Study .(Corporate Proxy Contests). Hearings before a
Committee on Banking and
Currency; U. S. Senate,
:
BOSTON; Mass.—Coffin & Burr,
Incorporated, 60 State Street, 58-
firm with offices in
when
possibility of the dissemination of misinfor¬
preliminary filing with the Commission five days in advance
of the mailing to security holders is to enable the Commission
*
" ' '
^
Afllllllfofl f A N V S F
MHHIIIIWI1U Ha
proxy statement, is for the
only; and refusing to inform the
to
or
mation.
'
am
Commission
content;
Gllffill ft Blllf
Stock
•
in advance of its dissemination in the
favorable, and, for current investment, purchase and retention
purveyors of electric current we ; have outlined
above might facilitate for you, in
due course, a Florida vacation or
even a contented retirement them
west Stock
;
Compounding the abuse of this "quantitative" discrimination
is the persistent policy of the SEC, via the
interpretation of its
own rules, in insisting that the
reply by management, at any stage
of shares in the
also
*
.
sands of future permanent residents.... The- currents of Florida
whether they are in the Gulf
Stream, the St. John's River -or
the race at Sebastian Inlet are all
is
such
the matter in question.
on
Contrastingly, there is complete
the length of management's reply!
.
fhlip to its economy and cause
indoctrination of tens of thou-
The firm
»
.
rules, management is required to include
stockholder's
a
:
proper proposal which it opposes.*
But such proposals—irrespec¬
tive of their complexities and technicalities—are limited
inflexibly
to the negligible maximum of 100 words with which to
educate the
,
old
1
v
'
It must be realized
support for
said. Six million tourists a year,
who annually leave behind over
a billion dollars in this prosper°.us. peninsula, give, a powerful
year
,
This columnist is, indeed, well aware of this
discrimination j
against the shareholder, and in fact, has recommended remedial
legislation in testimony before a "Fulbright Committee."*
In this brief report, stressing as
11 does the rapid growth in Florida and the highly residential
character of the electric power
demand, volumes more could be
-
you
highly constructive service.
'
stability of income and
««
should
•
LAWRENCE I. PEAK
adequate yield, Florida Power
a?d Ll&ht ls
more
correctly
vl?wed as a growth stock. At 46
thls stock yields about 2.80% and
?llls about 18% tir^e.s earnings,
•"ie *act tbat casb dividends have
doubled in the past five years,
however, is most encouraging to
Present and prospective shareholders.
A
ap¬
.
stockholder
weight
your
uninformed
or
.
amount of
same
lend
can
California, Md.
.
their
May
:
In
-
however, management has taken nearly two
pages '
Gilbert's resolution, using the timeworn
argu- }
be limited to the
,
on
reasonable.
pear
six
.that paid
19.02,
Florida Power decided last year
to
sell
its Georgia Power and
.
am
,
™
oil
1
are,
a
ments which
Present earnings velocity of the
company, this net figure should
advance about 25c per share! a
year*
'Y, *
Cash dm«enas, as above mentioned, have been most conserva*ive and are currently.at the rate
of $128 Per annum» which is
twice the 1950 payout. There was
a 2-tor-l split in 1955. Whereas
many utility commons are valued
™
generating stations burn
you
places-restrictions
the instant case,
to belabor Mr.
earning
At
protection to stockholders who do
proximately the
level;
in
rests
common
for
1956.
capitalization,
;
the
number
of
stockholder may use in support of his
resolution.
This is not
^y $36 2 million in preferred. The
equity* which represented 37% of
million shares of
Y'
advantage of being on the inside
part of management.
a
SEC
and plans under way envision installed
capacity
of
1.9
million
kilowatts by the end of 1960. Six-
the
Corn
Wu
one
some
words
followed
t01\tbe
Y
not .have the
week are moving to Florida per- ty-six million dollars will be
manently. By no means are these cpent on plant expansion in 1957
ah "65 plussers" coming to retire, alone." The company dividend
Many are young couples, who find policy of retaining almost 50% of
at the south as you leave.
From; the climate, working and living net has meant that about 40% of
there, your way may take you to conditions in Florida attractive, all construction costs in the five
the West Coast, St. Petersburgh
Florida is, in fact, one of the very years (1951-5)
were
provided
with its curbless street crossings, fastest -growing - states
in
the from internal sources.
Tampa and- its annual salute to Union; and growth is just fine for
Sept. 30, 1956 long term debt
Gasparilla, Sarasota, home of Bar-! electric-utilities m general, and stood at $148.6"
million
Myers and
comfortable
j
very worthwhile resolutions which would have ''
shipping, commercial -and
banking
center
with
the
ultra
modern
Prudential
Building
standing like a gigantic sentinel
and Bailey; Fort
the proxy pol¬
Mr. Lewis D. Gilbert has submitted
two
given
way
jium
Committee
Banking and
-
'Y; Y
; .1recently received a notice of the annual
rpeeting of a large Industrial company and
noted
VIDED
now
'
DEAR MR. MAY:
the'jiighest rates in
. "
' V
Generating capacity is
on
this
company
meeting season, make
particularly timely the question raised in the
following communication from a reader.
•
the U. S.
eattle (Florida is the second larg-
GAPS
Fulbright
midst
tiesResidential;^ consumption
averaging 3,239 k.^. hours in 1955
af opp of
the
along with the publicly-aired agitation stirring
Hobe
Sound, elegant Palm Beach, marina packed Fort Lauderdale and,
of course, fabulous Miami, where
million people, over 5,000
industrial
plants,
mountainous
production of concrete blocks (of
which most new houses are built),
that
Exchange Commission,
whoosh
f
in
thermometers
the
Coast,
down
this
four
East
who
motion
tropical
or
to the
over
beavers'
for-
'insular
three
Moving
hand
to
Currency) will at this
St. Lucie River, posh
laden
coming
(a subcommittee of the U. S, Senate's Committee
session carefully consider
icies being pursued by the Securities and
Light Co.
eager
the
ward
by
Florida Power &
we view another major rapidgrowth utility, Florida Power and
Light Co., which, lor 1956, will
gross around $167? million, up
swimming pools outnumber the from $46 million in 1950. Florida
telephone booths; and the promis- -Power-& Light serves;-452 coming platers and flaming flamingoes ^unities principally on "the East-*
of Hialeah.-Not to mention Or- Coast including Daytona-Beach,
lando,
the
complete
southern Fort Lauderdale,, West .Palm
metropolis, mid state."
Beach, Hialeah, Miami and Miami
All this thriving, balmy geog- Bcscn. In
area
over oneraphy, with its zooming land val- third of the state's population,
ues, is.the native habitat of about and its fastest growing commurri-
for
economic
epidemic
North
workers "revving
.
h
a **r a «*
with
asm
the
.
virtu-
allv
„uu
Ira U. Cobl.l.b
technicians and
MAY
PROXY SOLICITATION
excel-
common.
-
sands of sunny
.1
By A. WILFRED
rate of
^progressive
Ience ot Florida Power
f .l
The at¬
modernity of« property,
quality of management all
and
"f-
Observations.
dividend
the years.
over
growth,
providing dynamos for dynamic Florida.
returned
sojourn
'f
out
stockholders here
net,
received
lessen
paying
tractive territory, unusual
the two major electric
on
of
custom
a
treatment
Delivering
that should
Thursday, February 14, 1957
....
1
I
.
Volume
5612
Number
185
.
The Commercial and Financial Chronicle
.
.
(777)
A
Anatomy of the Price Inflation
And Steps to Thwart Further Rise
u
major/groups of wholesale
prices between, December 1955 and
December 1956,,We find the major
increases in machinery and motive
ucts
and
structural
Also
index and factors contributing
price rise in past
year or more
which
(1) commodities most sensitive to price inflation
,
.
-Since
June
1955, the wholesale
vidual
risen
has
recorded
were
creases
metal
and
5.3%.
by
change
It
instructive
to
sector
of
the
prices.
rise
-
agricultural machin¬
which
ery,
the
the
while
of
the
construction
areas
trical
experienced
the.
greatest
price
rises
and
that
showed
ade¬
the
Jules Backman
of pro¬
prepared several - tables
which show,the changes in whole¬
demand
sale
rose
have
since
prices
and
decline
an¬
of
build¬
products
price
declines
and
volve
with relatively small
were
and farm
distortion when allow¬
some
When comparisons are
tors.
the
between
suc¬
this problem of sea¬
movements is over¬
price
The
index
overall
materials
mediate
shows the changes in
prices by major indus¬
groups
from June 1955 to
arrayed
The
wholesale
rise
was
price
5.3%
index
in the
and
period.
this
The
.
*
••
■
:
k
by 7.3%
rose
to
and
'
'
Table
the
4
"
BLS
the
shows
for each of the
ties
also
is
•
W
'vV
•
changes in
into for,
spot primary
three selected dates.
changes
The
specific cothmodi-*;
"
shown.
Supb ' piice^
usually reflect inflationary-pres¬
sures
in
our
e con om®er3?i
of
major
retail
in
8%
and
the
Wheri
prices.
substantial inflationary pres-
the
increases
Continued
have been largely those
in prices
in the
on
page
24
and
taken
'
.
announce
INCORPORATED
FOUNDED
which have been
boorri
by the
YORK
NEW
PORTLAND
•
apparel
-
EDWARD
"
\
place.
JAMES A. SEBOLD
JOSHUA B. RICHMOND
previous¬
:
" '
,
president-oircctor
.
BOSTON
.
-
i
»
»
M
■
I
«.
.
II"
•»
JOHN
senior
•
i,
psesioENr
vice
biftvcto*'
<3
I • .'Jt.l
otexecfm*!*
•
'
i'
T. GLEASON
J. ERNEST
BOSTON
vice
4Tb At
assistant
ia.il.
:
S
•
sales
WILLIAM
B.HUBBARD
representative
.
sales
PRESIDENT
YORK
HARDING
G.
representative
.
•
BOSTON
BOSTON
>
>V
K
stockholders
/•}
it
"t-
nonvoting
.CHARLES
K.THURSTON
THEODORE
PORTLAND.
firm
•
JOHN
S. PETTENGILL
AUGUSTA.
ME'.
other
ME.
T. BEACH
NEW
>
YORK
officers
*
REGINALD
V. KENNEDY
assistant
.assistant vice president
NEW
.
CHARLES L. SKINNER
.
NEW
EDWARD
secretary
other
WALTER
.
BOSTON
j,
VICE
BOSTON
11
McMahon, new york
Ja Bahth
•'
' MALCOLM G. DODGE
ASSISTANT VICE RRE8IOENT-OIRECTOA
NEW.
WEBBER. JR.
B.RICHMOND
assistant
president
BOSTON
*
•//x-.'Kl*
.
BOSTON
JOSHUA
*
'
president
vice
,
M. INGALLS
vice
...
.
,
|
qVICEPR E 61 DISljlT<=7°A
WILLIAM
president
BOSTON
-
.
"
'JOtOtn
ROSlNa^nBj'AfcES'^d^EEiOLD
TREA9URER-OIRE
oi rector
„ti
J4
* V-.»
.J.
.
-"HENRY B.PENNELL. JR.*,
Vict ^isnAENT-DihECToR
PAINE?..
A.
BOSTON
•
SmFrmcisc*
our
voting stockholders
ARMITAGE*
T.
ALBERT
EDWARD' S. AMAZEEN
1
general partnership in
V
WILLI AM-G. HANDING
JEROME M. INGALLS
CHARLES L. SKINNER
-
officers. directors and
-
price rise which has
+■%. "
MALCOLM G. DODGE •
-
EDWARD 8, HUBBARD
*•
S. AMAZEEN
>
J. ERNEST ROBINSON
|
T. GLEASON
WILLIAM S. WEBBER. JR.
William'Howard Brown, San Francisco
have been admitted to
BANGOR
•
HAVE BECOME VOTING STOCKHOLDERS;
THE FOLLOWING
THAT
ANNOUNCE
TO
GLAD
ARE
WE
tbe three
and
■
G.
HARTFORD
textile prod¬
x
e
*
labor costs
of declining prices
Richard C. Van IIouten
Eugen
1898
boston
or
that effective February I, 1957
■
Exchange
COFFIN 8c BURR
indi¬
JEROME
■
to membership in the
Stock
York
place in those sectors
in the overall
4
-
■
halt.
Sensitive Price Index
As the
significant that
the
with
»
pleased to
are
A
be
to
me
areas
BOSTON
Wc
which
can
then brought to a
to the
have
taken
durable goods.
consumers
increases
HOLLIS
'
rises
New
secr*etary-clcr k
<L
prices
rise
a
contrast
in
we announce our admission
noted.
This table underlines
the importance of expanding de¬
mand and boom-time conditions
largest in-
Washington, D. C., Jafh.~3f, 1957..
major
the
stimulated
areas
by Dr. Backman before the
Economic
Committee of Congress,
w
goods
ly
^Statement
Joint
pattern
for the finished
similar. There has been
of
ucts
than farm products and foods dur¬
'
taken
bacco manufacturers,
7.8%
in the index for commodities other
ing
act
the overall rise irt
be slowed down "and
place in producers goods and for
inter¬
for
supplies
HOLLIS
The^ changes are
order of magnitude.
in
monetary policies
areas,
T
during the past year and a half,
price rises have been nominal or
nonexistent.
These
include to^-
1956.
overall
and
boom
iu
greatest relative importance.
On the other hand, in industries
which-have not
done too well
1
December
potent force to stop
To the extent that
promptly.
At the slightesf^hinf
inflation, they" move upward
sharply,
Past
experience
has
the., lagging sales of President [in his Economic Re¬
shown
that the general,.; whole¬
cigarettes partly as a result of the port] has noted, "Prices of invest-sale price index and the consukner
cancer
scared This is also an area ment, goods and semi-manufac¬
of
relatively
low
labor
costs. tured materials and components price index generally follow the
movements of the sensitive whole¬
Chemicals and allied products also rose
quite
rapidly,
reflecting
sale price index, though not as
involve relatively low laibor costs. heavy pressure of demand rela¬
sharply.
*
tive to supply."
(pp. 30, 32).
A
From 1939 through August 1945,^
little
By Economic Sector
later
in
the
Report, ref¬
the sensitive price index almost
is
made
to
the
con¬
Table 3 shows the breakdown erence
doubled
as
compared with
in¬
of the wholesale price index by tinued rise in prices of producercreases of about one-third iri the
finished
equipment, "the demand
economic sectors.
Between June
general level of wholesale prides
1955 and December 1956, the over¬ for which was especially insist¬
and in retail prices. By 1948, the
all
index
for
crude
materials ent." (p. 32). It seems clear that
sensitive
price
index
had
in¬
showed no change. However, when the areas which have been most
creased to a level of 264% above
the important components of that stimulated by the boom show the
prewar as compared with an in¬
index are examined, it is found largest price rises in contrast to
crease
of 112% in the! wholesale
the
that foodstuffs and feedstuffs de¬
relatively modest price
76 o.L
in
retail
price level and
in other sectors of the
clined 51/2 % in contrast to the rise changes
prices.
of
7.2%
for
nonfood
materials economy.
From
June
1950 to February
It must be recognized that eco¬
except fuel and a 13.9% rise in
1951, the sensitive price index
fuel. This latter increase reflected nomic data of this type rarely rose more than 50% as compared
primarily the sharp rise which has yield a picture of perfect rela¬ with an increase of only 16% ih
taken place in coal prices.
tionships. Nevertheless, it appears the general wholesale price index
extreme, small net
in industries in which
wholesale
try.
that
have
are
Table
most
products.
cates
most
come.
/
rose
was
change for foods and
shown for processed
of tie economy
cessive years,
sonal
the
products
the
An examination of Table 1
made
months of
same
ill
has not
to biunt the rate of advance in the
sharp
foods, lun bar and wood products,
is not made for seasonal fac¬
ance
for
used
sumers
,
between
December inevitably in¬
June and
activity
part
8.4%
At the other
food and farm
comparisons
products,
have
areas
the price rise.
nondurable
goods; in contrast, finished dura¬
ble goods
prices rose 6.4% and
prices of producers finished goods
rose 13.2%.
This tabulation again
indicates the relatively small price
changes for the nondurable con¬
markets)
reported
no
declining prices in 1956.
area
prices
the
Middle East situation.
seasonal
the
movement for many
increases
large
,
or
expanding components
sharply
and
rates.
Petroleum
reflecting in
wage
and
1955
June
since December 1955.
Because,
of
influence
posed policies.
I
small
a
component, gas, was about
unchanged. In contrast, coal prices
rose
22.8% under the combined
other
forces
quacy
of
areas
and lighting materials was
5.9%.
This
smaller than
rise resulted from the fact
one
component, electricity,
only
to evaluate the
causal
both
machinery,
average
which
against
prices of
machinery and elec¬
in
power
as
background
a
7.7%
was
,
dynamic expansion, approximated
15%.
The overall rise for fuel
have
which
lagging
a
economy,
increases
determine
economy
with
deals
textile
been
fectecf .by
the machinery group,
for
the
groups
fiscal
little
increases in prices was tobacco
manufactures, which has been af-
products
within
that
prices
of
is
and
non-residential
and
Another
metal
for
construction
for components
of only 3.1% for other
lagging
expanding monetary supply can lead to resourceunemployment instead of price rise.
index
for manufac¬
Intermediate ma¬
be
turing (15.4%).
decline
of
which
have
economic
major rises in prices
terials
The
apparel., (which have experienced
(14.9%) and
However, there has been a wide machinery and motive products
variation in the behavior of indi¬ (12.9%). It is interesting to note
price
The
goods
sales),
.
the boom continues. Believes wage-price spiral not
as
by
21/2%.
7.1%.
by the large decline in automobile
posed alternative of wage-price fixing in peacetime, prescribes
larger budgetary surpluses and more effective monetary steps
long
de¬
rubber and rubber products
(which /were adversely affected
productivity gains. Professor Backman doubts President
Eisenhower's appeal for labor and business voluntary restraints
.."..'.'will succeed in keeping price down, and after decrying pro-/"
so
which
only
rose
in
areas
lagged
manufactures
levels of December 1955.
Lumber and wood products (which
were
adversely affected by tne
ing,
of
fed
were
the
from
the
goods
pressed
rise is due to business boom and labor cost increases in excess
i
advanced
change for food manufactures
and that materials for nondurable
and
among
larger increases in 1956
farm products and processed foods
by NYU Professor shov/s:
are now only
moderately higher than in 1950; (2) prices rose in those areas
most stimulated by the boom; (3) we are not in a period of
classic inflation reflecting Federal budgetary deficits cr large
money supply expansion—though increase in hand-to-hand
money and demand deposits are pointed out; and (4) price
to
nonmetallic
included
The table in whiph .the presses of the
practically * boom have been greatest while
that
been stimulated significantly.
occurred in materials, used in du-, These
data
also suggest that a
rable goods manufactures (10.1%)
slowing down of the boom will
products, metals and metal prod¬
the
and a half.
to^re was
year
no
minerals.
Breakdown of wholesale price
past
in
shows
University
York
New
Economics,
of
is. shown
in
By DR. JULES BACKMAX*
Professor
similar' picture
Table 2 which, arrays the changes
5
NEW
YORK
E. FOSS
secretary
YORK
members
Co.-/
T
ESTABLISHED <1883
NEW
BOSTON
YORK
EXCHANGE
STOCK
STOCK
•
EXCHANGE *
"
MIDWEST STOCK EXCHANGE
1
Members:,'
/
'
-
New
York Stock
Exchange.*.
American Stock
Exchajnge: (Associate*
T
>
AMERICAN
STOCK
EXCHANGE
( ASSOCIATE)
.
i
NATIONAL. DISTRIBUTOR
"♦
-
SAN Francisco * LOS ANGELAS %NE\V YO«X '
-
Pacific Coast Stock Exchange
.
•
NEW
ENGLAND
FUND
-
..
«
t
:r ■
:;/V; j.
-
S.
1SS7*
-
*
G
(778)
The
svnt^ofic
Foreign Trade Outlook for 1957
in
By WALTER II. DIAMOND*
Corporation
Booming U. S.-European trade, higher prices, distortions in
marketing pattern, and effect of oil crisis on Europe
are
described by McGraw-Hill's international economist in
analyzing the trade and economic outlook by country and
The cold
portant
Mr. Diamond envisions Austria, Belgium, Brazil
and Canada to be the best markets for our
exports; Western
be
momentous
the Middle
Europe.
events
East
occurring
in
and
Hemisphere;
gain in imports to
in
to
the
is
Goods.
in
The
cause
some
purchases .of
Moreover, Paris
toward
trade
In
in
still
gains.
"Western
Austria
is '
of
one
tions
in
it
area,
been
which
S.
,
1 9 5 7
that
built
would
climb
as
much
as
will
reached
Walter H. Diamond
1956
by
only about $<00 million. This was
based on the premise that com¬
and
goods
in
will
reduce
forces
in
the
and
levels
the
defense
greater
of
ern
U.
lies in Europe
artificial
armed
pur¬
and
America's
European busi¬
Repeated restrictive
by
most
of
Al¬
West
tremendous impact
have
trade
balance of payments all
»An
address
fay
Foreign Trade
Island, Jan.
Rhode
Mr.
Diamond
Club
15,
before
'
j.
other Western
Euro¬
Unparalleled
pros¬
and
exchange reserves, up $100
million in the past
year/ will level
Belgium's greatest
will
lie
wealth.
in
exporters
will
larger
can
is
pay
sales.
'a
on
.re¬
U.
'
'
last
year's unprecedented
level
since increased oil
shipments will
stability
compensate
eign exchange position is
strength¬
for
reduced
sales
of
the shipping short¬
rising prices for manga¬
and
nese,
tin, rubber, jute,
hides, meat,
vegetable, oils
and
other
materials from the Far
raw
East, West¬
ern
Europe will
itbe
relp
more
upon
\ overcome.:
Danish
ening
is
An
that
so
imports,
element
appearing
economic
on?
The
scene.
controls
which
Providence.
were
for¬
on
dollar
liberalized
twice
in
1956, will' be further
loosened. But the oil
shortage will
prevent
a
stepped-up industrial
output. On the other
hand, Den¬
mark's
European neighbors will
have to depend more
on
Danish
farm products because
of
Americprl
imports of
tinue
for
to
open
new
American
and
opportunities
European
ex¬
porters in 1957.
A severe oil
shortage will force
industrial slowdown in
France.
production will suffer the
most but the chemical
and
U.
is
PRIVATE LEASED WIRE
SYSTEM
las Angeles Stock
Exchange
•
Honolulu Stock
and other
—Private leased
SAN FRANCISCO
•
PORTtANO
•
\'
Exchange
• Chicago Board of
Trade
leading commodity
exchanges
radiotelegraph
•
•
circuit
NEW.YORK
AND
hit.
industrial
the
the
exchange
continue
$263
to
Moreover, the
force
France
•
OTHER
to
will
PACIFIC
•
weaken
to
in
r
almost 500,000 during the month to 2,900,this increase about average for mid¬
rose
called
-
.
in
total
employment between mid-December and
was the
largest for that .period since 1948-49.. In
1949, employment slipped 2,020,000 under a" month
earlier.
-
-
In the steel industry this
weeic, a release by "The Iron Age,"
national metalworking weekly states, that a
sharp decline in steel
demand is out of the question this year and that the
recent easiness
in demand for some steel
products reflects a return to normal
seasonal market
influences, nothing
more.
4
•
An "Iron
Age" check of mills and major users suggest that the
overall ingot rate will show a
slight decline in second quarter.
Mills now operating at above
capacity may have to cut back to a
less hectic pace,
barring
sudden turn in international relations.
a
Here is how the steel picture
shapes up for the year, accord¬
ing to,this trade journal: First quarter, 96% of
capacity; second
quarter, 90% or slightly better; third quarter; 80 to 84%, the usual
summer4 decline and'the fourth
quarter, 88-90%. Overall for the
year,
88-90%.
*
,
The trend toward
»
a
buyer-seller relationship in sheet
and strip reflects a growing
tendency to reduce inventories. The
automotive industry has taken the lead with
automotive parts
makers, appliances and warehouses not far behind.
Actually,
.'
states this
trade
magazine,
Some mills continue to operate at above
steel
business
capacity.
a range of slightly less than 90% up to 100% of
on the company and its product mix.
Mills
sheet and strip capacity are feeling the trend more thart
companies with a better balance between heavy and light steel
products and the plate, structurals and pipe markets are still
running strong.
shipments, depending
heavy
on
Near-record Januarv-March auto
predicted
motive
for
t.be
Detroit
production-emnteyment
of
.
.;.}
"Ward's" said the upsurge stems
-level
Motor
On
principally from programmed
January-March
Co.
of which
and
are
Chrysler
output plus sales
Corp. 1957 passenger
built in this
of
successes
cars,
40%
45%
t
combined
the
a
1956
model year
and
January-March
added
this
have
programmed
output
car
30%
their
over
a
combined
year
ago.
is
„
Ford-Chrysler completions for the Detroit area in JanuaryMarch, or 380,000-plus units, than last year at this time, plus
rp^
appropriate
and
manpower
employment to handle such vol¬
ume.
Such
ouarter
a
bright
prosnect contrasts
outlook
car
which
at
this
with
time
the
is
nation-wide
first-
being scheduled
2% to 4 % above year-ago levels.
only
Reflecting January sales strength, auto production in United
certain
'more
Ford
to
area.
basis, Ford Motor Co.'and Chrysler Cor]>.
Jumped to 50% of industry new car sales, in January from 43%
the
credit
a
was
Friday last, by "Ward's Auto¬
area, on
Reports."
more
oil crisis will
spite
good.
,
ex¬
The ?franc
is
Incoming busi¬
is running in
ness
.
Monetary
reduce
States plants increased
to
143.441
units
last
week
from
136,308 a
Meantime, the
„
year
according to the statistical publication.
daily rate of Jan. 21-31 new car sales increased 4%
and
ago,
5%
over
over
Jan. 11-20
Dec. 21-31.
L
Truck
Western Germany and
Italy
BOSTON
•
Inflationary forces
SEATTLE
as
COAST
CITIES
will
not
strong in West Germany
Continued
on
as
page
ago.
be
in
20
;
.
normal
.
The
rigid credit policy. Devaluation is
certain if prices continue
to rise.
Honolulu
CHICAGO
agencies
drop
mid-January
decline
million
International
Fund.
military expenditures.
•
Exchange
HONOLULU
Co.
Son Francisco Stock
Exchange
Midwest Stock
Exchange • American Stork
tos ANGELES
-
while
will
despite
from
Membert-
-
certain,
serves
Dean Witter
Exchange
be
ports will drop but coal sales will
gain. A freeze, on dollar transfers
DISTRIBUTORS
v
American
*
•"
/
■
.
also
provide
will be curbed and
tariffs will be
raised.
DEALERS
New York Slock
will
can
unemployment increased between
mid-January, both seasonally, according to a
equivalent to 92% of the first-quarter
969,000 unit level of record year 1955.
,
•
Ford Motor Co. alone is scheduling its United States
JanuaryMarch car output at 99% of the
556,712 completions netted in
the first-quarter of 1955.
"T
On a projected basis, "Ward's"
noted, this means some 30%
only 80% of
French oil requirements.
Imports
BROKERS
&
S.
and
'
"Ward's
glass
industries
UNDERWRITERS
The
nation-wide
Auto
INVESTMENT SERVICE
Unemployment
000.
in
an
Complete
slipped
'
winter.
shipping
,
will. Step up
a
seasonal declines in construction and other outdoor
work.
of
the
Uj/rjS,.. and.tilfStii) / America. shortages and longer routes of
BrUaini West
Germany and Italy competitors. Denmark should con¬
1957.
pay
24,700 to-1,749,600.
year-earlier figure of 1,517,200, the
S.
5% gain
a
Bad weather and labor,
setbacksDenmark early last
year-have
been
jobless
on
increased
.
.
.
count
in business.
endlesS
market,* well
promotion
with
again
Belgium
competitive
designed
asset
Congo's
Although
.highly
wards
the
with
26
According to the two agencies, employment in the week ended
Jan. 12 totaled 62,390,000, down
1,700,000 from; mid-December
and nearly the same as the
62,891,000 of the like 1956 month.
The agencies attributed the decrease on the usual
sharp cutbacks
in jobs after Christmas in retail and
postal work. They also noted
January,
Suez crisis prob¬
in
age
a
globe. The upshot will be
another
the
Hemisphere supplies. Ameri¬
loans certainly will finance
a
goods.
Because of
the
over
West¬
sumer
and
it
past two years will
hold.
Heavy world demand for
iron and steel,
metallurgical prod¬
ucts
and
coal
will
sustain
the
economy again in 1957. But gold
off.
compares,
Jan.
East
perity of the
nations
upon
any
nation.
pean
Depart¬
the
The
'•
good proportion of the
payments.
As a result, U. S.
exports to West¬
ern
Eurone will remain rlos« to
activity
will
on
the
machinery,
tools,
automotive
equipment, steel, scrap and con¬
following suit.
business
the
mean
materials
are
This
can
increase
spending will
S. Government
chasing of raw
heavy equipment.
throughout
our
probable
Middle
Prosperous Belgium
1956
States
'*
World
than in
the
United
V
credits
more
by
the
2, the
the number of workers
stated.
power
to
aue
lighted
1956 than in the
previous year, or
total
exceeding $6 billion worth
of American
goods. With petroleum
and its by-products
now
one
of
the majdr problems in
the world,
Western Europe will be
almost
intensified
everywhere, including this coun¬
try. Washington's decision not to
electric
'
of
Feb.
same'time, however, non-farm employment was the
highest in mid-January for any January on
record, the report
re¬
ably will be felt less in Belgium
scene.
total
At
make'
tensions.
Effects
ended
'
a
in¬
a
be
will
t
cause: of
been of little
help so far.
Despite the credit controls im¬
posed
in
the
attempt
to
halt
inflation, Western Europe bought
$1 billion more from the U. S. in
manufactured
of
exchange
while
extent
any
place.
dropped 15,500
year.
mid-December and
assures
here
forthcoming,
Austria's
stabilizing boom will not be unset
to
food products took
and
unemployment compensation
week
Employment
be
addition, there
incredibly high levels of 1956.
^Because of these unsettled con¬
ditions, the buying boom in raw completely dependent
hard
will
have
beyond the
in
loans,
for
the
merce.
im¬
hope of quashing the in¬
flationary
spiral
which
high¬
ness
general and
even
In
strides
Bank
20%.
the" main
prices.
measures
Middle East dilemma and
Russian
satellite upheavels
actually will
benefit world trade in
materials
great
and
area
nation
expansion,-chiefly
is little
mercial exports would hold
steady
at last year's fourth
quarter rate
of $17 billion.
Imports, on the
other hand, were
expected to rise
Jess than 4% to $13.5 billion.
Now
it is certain that
increased cold
war
tension arising out of the
will stimulate it
be
creased
in
gold
Tne
serves,
Shipping
shortages
and
longer
routes
around, the'Cape : of Good
Hope
,the
liberalization ' of
increased
thrown
were
—
suffer great
hardships as costs of
their imported commodities will
all-time peak
of
$29.8 bil¬
lion
is
of the
trade in
exceed
it
completely out of kilter because
blocking of the Suez Canal.
West
European
countries
will
had
antiei-
P a t e d
U.
the
Canal
in
joint release of the United States Departments of Labor and Com¬
these.
growing market in Austria. Peak
tourist earnings are reflected: in
Suez
Wednesday of last week
on
a
Department stated.
Europe
the
opera¬
This
industrial
actual
y
whole in the
dropped fractionally
as
....
few
a
erupted into
r
country
moderate increase above the level of the
correspond¬
year ago.
Year-to-year gains in the production of
The agency also said
lists in; the week ended
.
Continual
pattern—
and the commodity structure
upon
the
claims, judged an indication of the number of workers
-hiring a given week, totaled 276,500 during the like
last
span
in
ports from the dollar
American
exporters
trade
Index
.
register
-
289J00
]nc5n-
and Lon¬
spite of the oil crisis,
countries
a
'.New
cur¬
U.; S.
"_vr
-
Production
ment of Labor reported.
re¬
liberalization
Europe.
week
a
New claims
to
re-impose direct
controls, revising the trend
trade
Price
Auto
*
together
year.
ended
for
output
electric power, steel, petroleum
losses
reserve
The year of 1957 is likely to
go
down in history as one in which
world
ing
marketing
damage the
countries
bound to
should
entire
period
industrial
but showed
normal
further
two
Industry
Food
Business Failures
J
Total
don may have to
billion.
mili-
and
dis¬
Suez Crisis Changes World Trade
ta
*
those
Retail Trade
Commodity Price Index
general
how
$500 million this
tailment
Until
the Middle
Eastern crisis
•
of the
sult
-
than $14
more
the
consider
will
at
jump in U. S. exports to
roughly $18.5 billion and an 8%
Eastern
to
pattern
for
main¬
10%
inevitably linked to the
within
tortions
v
iK
i
England
Estimates place the
imports from U. S.; Africa will gain from Asian unrest; and
Italian and British industrial production may be
slowed by oil shortage.
America's foreign trade in 1957
steel
i
r,
•
Electric Output
Carloadings
economies of England and France. '
French,
will
and
M,
Steel Production
,
State of Trade
able
because of shortages
However,
$14 billion.
Latin America's gains at
expense of Asia will increase their
i #
prog¬
handi¬
be
not
picture of booming U. S.-European
trade and higher
prices, it is im¬
world trade in general beyond 1956's record
high, and increase
U. S. exports by 10% to $18.5
billion, and imports by 8% to
Europe's record $6 billion imports from U. S. will be
economic
American
on
gap
France
arising out of the Middle East
upheavals are expected to boost
tained due to increased oil needs from Western
the
Thursday, February 14, 1957
.
The
the
—
severely
will
.
fT
link
here.
tension
war
rjrsryen^
fill
normal
its
be
Europe
.
from' this
vital
a
production
of
will
—
capped.
to.
crisis and Russian satellite
steel
foundation
ress
region.
Coal
European industry.' But West
Europe's
Editor, McGraw-Hill "American Letter"
Economist, McGraw-Hill International
™tb^er.
country will become
Commercial and Financial Chrov.icle
building numbered 22,917 last week and 24,659
Last week's total was 23,093.
Ward's
output
in
-
said
its
the- resumption
Wisconsin
plants
of
American
following
the
Motors
recent
Continued
on
a
Corn;
strike
page
year
car
ac-
31
,
olume 185
Number' 5612 .;
The Commercial and Financial Chronicle
.
t
j
&
By FRANZ PICK*
;
y..r} Monetary
'
are made to lose
modern economic sys¬
tems,*. salutes governments' - notable progress in their subtle
techniques of accomplishing depreciation. Offers condensed
and practical survey of the principal "rubber-monies'* of world
trade; and individually analyzes Sterling, the European units,
South America, and .the Ruble bloc. Term? Deutsche Mark; one,
Moscow
\*
must
;•
against
..
-listed
j
V
ult task.
You
ndless
obstacles.
ave
buyer,
a
pi"rtaht
eluctaht
he
do
either
be
to pay
will
in
man
the
street
not
shape.
Dominated by
Sterling, they nevertheless fluc¬
tuate
The
in the
;
i}
to help
V
*
Ana if another
near future.
should
.crisis
arise,
will have
we
'England again.
management,
of*, philanthropy — but
purely and simply for motives of
reasons,
i xi £01? 6 st
We'havp
tLt
_
Vearnert
D
care
...
sterling
on
g fd
cannot
Area
as
wav
become
m0rtfiaee
f
We
„
thP hsrH
pSun7 hL
the
.
the
d?y this technique will run into
major
troubles, put the tune is
j
the:
comes-
Bank
repurchases the gold it sold
doubtful
short
and
rency
down.
makes
profit.
a
game
has been going
than
seven
years,
Franc,
has
goods.
,
This
hen he prooses
to
pay
a
cur-
in
rotf
han
tary leukemia.
the
j
a
o r
of
or
j
Pick
Franz
hen the deal
tightly
apparently
v
in
closed
to try to
us
This
,c(>^mitments
.
'4
'
which
400J to
Dollar
the-
a
'
be-
thu
in
its
buying value of this debt by $24 a substantial amount of her gold
billion or more, during the last 12 and Dollar assets, due to her exustomer, decides to suspend all months.
Computed-in a rather pensive expedition to Port Said
ollar payments for former,
as
popular way,
this depreciation an^ the resulting expenditures of
veil as for future, imports. Then amounted
to exactly $144 per P®
She drew $263 million from the
either with head for each human being living
ou sit high and dry
ollars, the foreign government,
ontrolling r the imports of your
locked
orts
for
assets
due
past
ex-
with deals that have been
or
•oritracted
ot
your
remind
to
want
the
Co-
of
you
omplicated adventures with
ombia, Turkey,
ther countries.
and will
:>en
I-have
atent medicine to-hand
nd
do
not
osition
But
solve
primarily
ohditions,
I
will
utline, what
briefly
to
situation
what,
a
currency
on
try
the
and
resent
in
problems,
questions
your
export
many
no
out here
to. be
pretend
to
as
based
re
or
again.- I want
occur
it'dear, that
make
o
Spain, Egypt
Such things hap-
is
at
according -to
strictly
personal
opinion,
might evolve during 1957. '
\
Let us begin with some harsh
my
eliminate rosy, tnou^ius
facts and
brought
on
To start
with,
customed
cies not
in
thinking.
must grow ac-
you
believe
to
that
curren-
only cannot remain stable
value,
ciated
wishful
by
but
one
have
erriments
have
-
be
to
depre-
the other. Gov-
way or
excellent
made
in techniques of accom-
progress
plishing sugh
In earlier,
results.'
-
classic
country.
this
do not know
I
>-
.
'countries they are much
*
Decline of purchasing
power in England and mahy memhers-of the Sterling Area has been
mucn
greater tnan that, in the
U. S. and many Western Europeai>, Asiastic and South American
lands
showed increases of
some
ruptcy
caused
has
of
many
you
substantial losses, as was the case
a
few
or,
yeats
Sterling
when
ago
devalued from $4.04 to $2.80,
was
when Argentina, Chile, Para¬
and Uruguay devalued re¬
guay
cently.
declarations
subtle
more
and
tions,
<
easier.
'
.
most
important
determines tne
fate
is
use—"the
to
living."
And
era
the
cost
of
declines in its purchasThat could stir
ing power.
the
of
It is never stated thrt a
currency
rest.
rise
sentence
now
of
we
up un-
live happily in
declining:
purchasing
address
near
will
•
-
*
will
improve
Beirut's free
in
market
Continued
on
but
offer to. sell nor a solicitation oj offers to
offering is made only by the Prospectus.
buy
any
$171,720,200
of these securities.
. ■
'
being offered
for the above Debentures at the rate of $100 prin¬
cipal amount of Debentures for each 20 shares of Common Stock held of record
February 7, 1957. Subscription Warrants will expire at 3/.30 P.M., Eastern
Company's outstanding Common Stock are
on
Standard Time, on
February 25,1957r
The'several Underwriters have
'A
,
en
.
agreed-,1 subjectJto c^rtaip
..
' •
:-
conditions, to
purchase any unsubscribed Deberit^/and, bothering and following the
subscription period, may offer Debentures as set forth-in the Prospectus.
Copies oj the Prospectus may
be obtained jrom any oj the several
underwriters,
undersigned, only in States in which such underwriters are qualijied
dealers in securities and in which the Prospectus may legally be distributed.
including the
to act as
The
the
.
Dillon, Read & Co.
Inc.
Kuhn, Loeb & Co.
Swiss Francs or to
Mark.
England's
Madison
on
British
have
Avenue.
But
learned, how
to
get along with little. They have
the skill to do it and I believe,
that
The First Boston Corporation
■'
Glore, Forgan & Co.
Blyth & Co., Inc.
Eastman Dillon, Union Securities & Co.
Goldman, Sachs & Co.
in
spite" of
which
its present
all
the
confront
weighty
it, the
will be able to be held
level of $2.78-$2.32.
at
Harriman Ripley
& Co.
Hemphill, Noyes & Co.
Incorporated
Lazard Freres & Co.:
Smith, Barney & Co.
Lehman Brothers
Hallgarten & Co.
Kidder, Peabody & Co.
Merrill Lynch, Pierce, Fenner & Beane
Stone & Webster Securities
Corporation
will
page
.
Holders of the
be de¬
future.
the assets of the Ford Foun¬
dation
York
"
than
more
Pound
1&57.
in vahr*
again when
their oil exports are resumed E.t
pre-Suez levels.
The Famous
Saudi Arabian Riyal lost in valuer
and
rights to subscribe at 100%
the
Dollar reserves, a little
$2 billion, are smaller
gold and
than
or
Deutsche
by Mr. Pick before the
Export Managers Club ft New York, New
City, Feb. 5,
have somewhat declined
difficulties, I do not
Sterling
the
Belgian
problems
*An
The units of Syria and Ira?i
ible.
J
Union,
Sterling position at present is not
comparable to that of the Dollar,
the
at aii ideal
remained
has
Bqt in spite of Britain's political
and financial
the
have arrived
Pound
excellent and completely convert¬
ing.
in
way
an
The
neither
tfc^
of
due 1987
only of
not
Payments
European
valued
nearly
currencies
Convertible Subordinated Debentures
to the Pound,
but also of the organization of
make such
of
failure, a
of
the
Among
Phillips Petroleum Company
r
And
currency.
happens
whatever
that
painless
techniques
stronger than
ago,
year
istrated
,'v
naving explained to you the
illusion, of
currency Rvalue, 'if
looked at from the strictly official
parity of monetary units," we can
-proceed with the condensed and
practical survey of the principal
rubber-monies of world trade,
Sterling ranks first. Nearly 65%
of the world's exports and un¬
ports are invoiced in Pound Sterling. Therefore, without any exaggeration, Sterling is the globe's
all
monetary authorities in the world
lations
The Italian Lira is
a
favor
Near East, the
Lebanese
Guilder,
not
values cannot be men¬
tioned in Spain.
currency,
abroad.
though
slightly depressed by declining
gold and Dollar assets, is in no
danger' whatsoever.
r
do
an!
The faefc
to rise.
rules
of¬
an
Pesetas
38.95
of
.
uniform public re¬
The
rule.
the
Dutch
capital,
But the Dol¬
Pesetas in
51
market, against
rate
fascistic
that
all
February 8, 1957
NEW ISSUE
-
brisk
The
about
really
th*
who
from
These
1956.
believe
rather than
Today,
This advertisement is
depreeiaavoiding frank bankrupcnot make export business
in
'
*
;
-
of their cost-of
to 27%
8%
living
Brazil.
Furthermore, no doubt
remains that a Sterling devaluation would also be a terrible blow
to the U. S. Dollar, which in the
long run would have to align its
v-alue to every major cut of Sterl-
Dollar assets, sim-
Monetary
black
ficial
Convertible
exporting
worth
is
might continue
is very ably admin¬
by the Banca d'ltalia, and
is beyond any immediate danger.
Fund, During last year's tourist season,
4
from
their gold and
devalued
their
currencies,
legal method of state bank-
road, to
investment
for
worse.
South American Multilateral Payments Clubs of Argentina and
ply
become,
of the
one
The
currency
administra¬
is1 excellent and Germany is
the
money
subsidies Spain gets.
all purposes, it is backed to
more than -100% in gold and Dol¬
on
the
makes
for
lars.
well-functioning
Nobody knows
Conditions in nearly every coun-
days, governments, unable to cope
with
the
constant
shrinkage of
This
'
Even witL
try on the globe are identical. In,
the
■
so-called
or
-
units.
cur¬
what the figure will be for 195 7.
for
going down tne
frustrations or headches becoming a permanent feaur'e of your business life.
I do
rain,
in
best
practical,
a
unit.
the
.world's
uni|. eft-
Peseta of at least 25 sub-varietiea
irito
The Deutsche Mark has
a
Spanish
bad record for itself.
lar
alongside these monies,
quality.
has been unable to streamline the*
risk.
tion
.
-Another widely discussed currency is -the French Franc.- Here
too I would like to venture my
lar declined at least 3%
during opinion of practical stability for
1956.
It therefore reduced the the coming year. France has lost
International
\
really sizable U. S. help, Madrid
fluctuates
parallel market.
a
Sterling
during
_good
,
I
And
consider
.,
is
-
mismanaged
management; based on il¬
lusions1 of grandeur, has create!
for more
on
around
prevent a
For this rea-
wilI do it.
Would
Prt~~%ear,'
corporations, insurance comparties, individuals, etc., was about
$800 billion at the end of last year,
The purchasing power of the Dol-
And
often,
ery
categories,
government
an
wBe
lieve
vate
cur-
ions.
using the
The total U. _S. debt,
private and public, including that
fluctua-
ency
must" for
it
Therefore
foreigrK trade>
The offeet of' it, s^erimg devaluation.
microscope.
risk
f minor
-Pound would play havoc with our
circulation
circuiauon
the
me
without
shown
be
can
Dollars,
•un
cancer
currency
infected
infected
system" of our Dollar with mone¬
generally
ou
of
form
also
also
has
nas
other
ency
yet in sight.
not
v-
Lira,
Spain's Peseta also is
during which
happened to
free
or
Central
The
.
he
better
a
ago.
the domestic
over
highly
reasons,
year
-
Turkish
interested
The Belgian and Swiss Francs,
•_
a..y.
_i
in
maintaining, .our
exports
at completely financially convertiole,
their"present level,,, A devalued are hard currencies without any
-
in
are
a
Not in such good condition ar<a
„
price
the
customer
a
Value
period, nothing
,ose
t
and
than
-
Not for
.
little
position
technicians^ will continue
fegulate the - Franc's free mar¬
ket
are
are
good
bypoliticians
and- surrounded- by
gold
graft.
While
listed
at
art
illusory
market. Whenever a Franc panic
official value of 2.80 Liras to' th->
arises, • people in Paris buy gold.
When they push the gold price ; Dollar, the black market pays U>
to H Liras for greenbacks. It will
up high enough, the Central Bank'
take a long time and a substantial
sells some gold bars :and a feW"
devaluation to improve Ankara's
hundred - thousand. - gold
coins.
V*
When the. scare, recedes, the gold • monetary conditions.
to
^
for
The Scandinavian Units also
in
of good
con-
going to harden
J
does
can
and chances
power,
'
-
or
nable to proide the Dolars
When -you
-
hedging against it.
currency
mastering all tricks within reach
$500
a
that the Pound is
sometimes labeled inflation. We all have to pay for it.
It is a rather cosily pleasure. Bu%it beclouds the real issue and the
diffihave to cope with
a
securities, provided
»
lift lie to function
s£I
Export managers- have
most solid collateral
government owned U. S.
War, Britain's currency
•
« a
//
French
miUjoh credit and the crisis was
settled. • If there is no third World
,
.-'
smoothly-functioning
capitalistic West.
-
,
millions
necessary
the
of British
"gian t on day feet," atad
export gold' to buy essentia! goodit from the
within Russia
currency system
lost
$571
advanced
were listed at a small
discount? in- Italy's free market;
i
,
continuously dis¬
1949, people have
of Dollars in un¬
since
cussed
7
greenbacks
<
devaluation of the
as
•
our
of the world's best units^ Maintains the
Fund
And
Franc has been
lost'in
was
million, the Export Import Bank,
■\y
business to remember that currencies
value, for the better working of
time
emergency, no
Publisher, Pick's World Currency Report
in export
present, and > near-luturei commit-
In this, ments.
pyiting the limping Pound on its
legs again.
The International
Prominent international currency expert; urging those engaged
in
which will enable her to face her
recent. events,
highly critical situation.
a
%
*
resulting
Suez; brought Sterling into
The'
from
Cnrrency Oullook—1957
'
(779)
White, Weld & Co.
22
8
(780)
The Commercial and Financial Chronicle
Campbell
Soup—Bulletin—J. R. Williston & Co., 115 Broad¬
New York 6, N. Y.
Chesapeake
Ohio Railway—Annual
reports—Chesapeake &
Ohio Railway, 3809 Terminal
Tower, Cleveland 1, Ohio.
City and County of Denver Water
Bonds—Bulletin—Hemphill,
Noycs & Co., 15 Broad Street, New York 5, N. Y.
Cleveland Trust Company — Memorandum
Prescott & Co.,
National City Bank
Building, Cleveland 14, Ohio. Also avail¬
struction
way,
Dealer-Broker Investment
Recommendations & Literature
It
understood that the firms mentioned
if
will
be
pleased
following literature:
send interested parties the
to
is
memorandum
a
Crestniont Oil
520 South
,
on
Resistoflex
Atomic
Letter
Comments
marine
(No. 24)—Includes Atomic
Highlights of 1956.
Franch atomic power
program, British sub¬
ship
propulsion, and items on RobertshawCo., Lindsay Chemical Co., Consolidated
Denison Mines,
Ltd. and Can-Met Explorations, Ltd. —
Atomic Development Mutual
Fund, Inc., Dept. C. 1033—
30th Street, N.
W., Washington 7, D. C.
Fischer
the
favorite
stocks of
readers
of
the
prices
given
with
Stocks
Bulletin
sub¬
Newport
Yamaichi Securities
_
'
'
•
Sugar
York
1957—Bulletin—Harris, Upham
City Banks
Portfolios
and
Breakdowns
—
of
sources
&
of
Meeds,
York 5, N. Y.
& Co., 120
-
Singer
&
of
120
13
New
Broadway,
Jones Averages and the
35 over-the-counter
used in the National
Quotation" Bureau
yield and market performance over
*.
National
Quotation
York 4, N. Y.
Bureau,
.
Inc:,
Bond
Also available
are
which have
stocks
Broad
Co.,
Utility
—
Memorandum
York
—
is
;
memorandum
a
'
-r
'
,
Two
Tax
*
Company facilities include nine
buildings
Philadelphia will hold
Friday, March 1 at the
Bellevue-Stratford Hotel.
Dinner at 7:30 p.m.
(tariff $16).
A
member-guest luncheon will be held at 12 noon on March 1, also
the
Bellevue-Strattord
bonds.
&
Stocks—Comparative figures—G.
A.
•
—
»
Report
Ryan,
Inc.,
Co., Inc., Philadelphia.
suiting
Street, New York 5, N. Y.
Alexandria, La.—City Public Improvement
Bonds—Circular—
Scharff & Jones,
Inc., 219 Carondelet Street, New Orleans
12, La.
American Pipe and
Construction
and
tronics
and
systems
paid
••
7
;
'/
,,oO
,,
.ij
/
in
analysis
nuclear
guidance
for
program.
of
and
the
the
guiied
missile
Dikewood is expected
by
$250,-
Over the longer term,
division's
hanced
elec¬
control
to generate income of about
tation
bu
specializing
evaluation
000 in 1957.
Company—Analysis—Security
Adjustment Corporation, 16 Court
Street, Brooklyn 1, N. Y.
/(
prospects
the
are
outstanding
en¬
repu¬
of its officers and
the vast,
potential in the type
being handled. Inciden¬
tally, two other situations similar
unscratched
iu
Jus?
of
Banks, Brokers, Dealers-
work
to Dikewood's
are
currently being
pursued by the company.
Radiation's
most
important
Current
projects to date
Trading Favorites
sored
Aircraft Radio
Bought
—
by
the
have
Air
class
been
Force
spon¬
for
the
units:
at the
of the information
and
the
unit
where
be
receiving
the
compiled.
which
accept
desired,
recording
and
information
data
from
re¬
share, which are being
7V:>c quarterly basis.
have
equal voting
rights.
basic
of
two
DEPENDABLE MARKETS
have
i
t
,
,
*
common.
likely before the end of the year.
In
common
Inc.
Radiation,
conclusion,
A
is
"my favorite
security" because it is
well man¬
a
electrosensitive
than
12
inches
paper
wide.
no
This
apparatus is suitable for test and
leader in
the
field of digital data
processing for guided missiles and
and
statistically
under¬
rapidly
valued in relation to other
companies
growing
elec¬
the
in
evaluation of military
equipment,
commercial aircraft and aircraft
tronics
engines,
ing in the Over-the-Counter Mar¬
uses
plus
other
requiring collection of
many
high-accuracy
as
myriad
of
the
a
data
points,
automation
of
such
Instrumentation
complex
tion.
As
a
matter
of
is
another
fact,
con¬
at
ket
industry.
Currently
approximately
estimated
15
sell¬
times
earnings for fiscal 1957,
Radiation's stock appears cheap in
comparison
other
with
'growth
electric firms, which sell at ratios
of 25
to 50 times
earnings.
AVAILABLE
Attention N. Y. S. E.
Editor—Reporter
Firms
Arbitrager
Analyst—Researcher
avail¬
14 yrs.: Wall Street
•'
tion only.
I;
:
Dow-Jones
York 6, N. Y.
DEMPSETTE6ELERA Cl
"■i.r
I•
Parte
&
Box C 26, Commer¬
Financial
Chronicle, 25
Place, New York 7.
1
Ticker
Magazine of
.
cial
Journal
Barron's
clientele—New York City Loca¬
& CO.
Security Dealers Association
Trinity Place, Ne*r
No
been
aircraft
of
more
Experienced
Y.
stock.
paid on the
Additional financing is
able—Have substantial personal
Members: N.
A
class
roll
Sold
TROSTER, SINGER
share
convertible
is
into
aged organization, the recognized
major field of endeavor for Radia¬
consists
common
ceiving unit for a permanent rec¬
ord,
are
capable
of
accepting,
converting and plotting up to 24,000 binary words
per second on a
systems.
company's
A
a
units,
the
Class
per
share
class
Recording
and
common
management-
dividend preference
a
will
manufacturing techniques.
The
chemical
stock.
common
dividends
transmitter placed
a
source
A
of
shares
on
The
for
development of digital telemeter¬
ing and automatic data handling
telemetry system
Airborne Instrument Lab.
380,934
of 30c
for the electronics
agency
industry,
General Investing Corp., 80
—
of
shares
Both
•
Wall
radar
laboratory.
owned
The Security I Like Best
70
tests,
test sites,
ranges, exposure
trailers
and
a
Capitalization consists of 169,066
Continued from page 2
Mobil Oil Co., Inc.,
Exempt
Market—Discussion—Park,
Pine Street, New York
5, N. Y.
radar
shares have
Street, Rm. 2400, New York 17, N. Y.
air¬
complete environmental
as
(tariff $3.50).
Reservations may be made ,with Thomas
Suski, Eastern Secur
rities, Inc., New York, or Andrew F. Pimley,
Woodcock,'Hess,
Mover
three
Melbourne and Orlando,
In addition to production
plants, these provide, such services
The Investmeht Traders Association of
33rd annual mid-winter dinner on
their
at
at
located
in
Florida.
ports
INVESTMENT TRADERS ASSOCIATION OF PHILADELPHIA
-
Broadway, New York 5,-
Oil—Information—Socony
Aberdeen Petroleum
and
com¬
pany's test equipment is designed
for'checking and determining the
performance of mechanical ♦ and
electrical instruments, such as the
amount of pressure required to
activate a valve or bank a plane.
on
<
radio
The
microwave frequencies.
Goodbody & Co., 115 Broadway,
6,
intermediate,
video,
Company—Analysis—First Securities Corpora¬
Durham, N. C.
Corcoran Street;
Co., Inc., 70 Pine Street, New York
5, N. Y.
Skin Diving for
150 East 42nd
missile); and in the design and
development of circuitry and in¬
struments in the ranges of audio,
NSTA Notes
ppidrdividendsfior 50 years or more, common
growth and tracing, selected
bonds, pre¬
Common
test
(including complex precheckout of the guidance
system employed in the U. S. Air
Force's
first
operational guided
10 Post
Situation—Review—Chase Manhattan Bank, 18 Pine
Saxton &
electronic
aircraft
13-year period —
Front Street, New
Street, New York 15, N. Y.
Public
products de¬
manufactured by Ra¬
include
ranging from general
purpose
wavemeters
to
special
purpose equipment of a classified
nature; electronic checkout equip¬
ment for field and depot support
of
guided missiles and
piloted
Wachovia Bank & Trust
Company—Analysis—R. S. Dickson &
to
purposes.
other projects,
highly classified
a
important
and
diation
Company, Incorporated, Wilder Building, Charlotte 2, N. C.
analyses of Colgate Palmolive Co.,
stocks and convertible
Petroleum
Other
signed
Corp.—Bulletin—Bregman, Cum-
,
*
its
nature.
Shipbuilding and
N. Y. Also available
United Aircraft Corp,' : -**"■ ;
fof income
ferred
Products
Cement
Trane Co.
Dow-
of
most
flight
New
Nickel Rim Mines,
Ltd., Singer Manufacturing Co., Westinghouse Electric Corp., a review of the
Petroleum Industry,
and in the current issue of
"Pocket Guide," lists of 20 stocks
,
Like
a.
46
& Co., 120
for
missiles
defense
this work is of
Dry Dock Co.—Analysis—
Street, New York 4, N. Y. ;
Sugar Refining Company—Annual
report—National
Refining Company, 100 Wall Street, New York 5,
tion, 111
New'
,
Review"—Harris, Upham
N. Y.
News
Schield Bantam
'
com¬
as
development
tracking
national
equipment,
Co*—Memorandum—Lerner &
Office Square, Boston 9, Mass.
'
J
York
Pittsburgh Bank Stocks—Comparative
analysis—Moore, Leon/
. ard
& Lyhch, Union Trust
Building, Pittsburgh 19, Pa.
Portfolios for Small
Investors—In current issue of "Market
,
Distillers
Riverside
Co.,
industrial stocks
Averages, both
antenna
and
Broadway, New York 6, N. Y.
*'
Over-the-counter Index—Folder
showing an up-to-dateparison between the listed industrial stocks used in the
equipment in
by the CAA.
comment is the
of
automatically
Chas. Pfizer & Co.—Report—Bache &
Co., 36 Wall Street, New
York 5. N. Y. Also available are bulletins
on Cooper Besse- "
mer and Great Northern
Railway.
•
Government
income
gross
City, Banks—Laird, Bissell
r
N.: Y.
.
Broadway, New York 5, N. Y.
Makers—"Highlight" No. 32—Troster,
74 Trinity
Place, New York 6, N. Y.
New
Ill
Hayden, Stone & Co., 25
National
—
Missile
worthy
and
If Wall Street, New York 5, N. Y.
National
Manual
Market Outlook for
Haupt & Co..,
non,
Morgan & Co., 634 South
Spring Street, Los Angeles 14, Calif.
of Sugar
Companies, 33rd Edition—Farr & Co., 120
Wall Street, New York
5, N. Y.—$3.
—
Also
Corporation—Analysis—Unlisted Trading Dept., Rm. 707,
Ira
Co., Ltd., Ill Broadway, New York 7, N. Y.
Life Insurance
navigational
company's vital position in radar
mings & Co., 100 Broadway, New York 5, N. Y.
—
ex-
B-57 aircraft for tests
Company, Boston, Mass.
Knox
,
—
service
nuclear
a
the installation of communications
and
Montecatini Mining & Chemical
Co.—Memorandum—Hirsch &
Co., 25 Broad Street, New York 4, N. Y.
National Dairy Products
Corp.—Report—Thomson & McKin-
scription tor three months to "Business and Investment Tim¬
ing" at $10—Anthony Gaubis & Company, 122 East 42nd
Street, New York 17, N. Y.
Japanese Stocks
Current information
instrumentation, field
plosibn. A current project involves
John Hancock Mutual Life Insurance
Company—Annual report
John Hancock Mutual Life Insurance
out¬
trial
ground
evaluat¬
.
—
appraisal of the
the
Company—Analysis—Boenning & Co., 1529
Street, Philadelphia 2, Pa.
Oil Company of
Texas—Analysis—Blair &
Co. Incorporated, 44 Wall
Street, New Lork 5, N. Y.
Hooker Electro Chemical
Company and subsidiaries—Annual
report with six-year summary of the combined
companies—
Secretary, Hooker Electrochemical Company, 27 47th Street,
Niagara Falls, N. Y.
*
—Monthly investment letter
Burnham and
Company, 15 Broad Street, New York 5, N. Y. Also avail¬
able is current Foreign Letter.
Forecasts of Stock Prices—24th annual
look for business and stock
and
and
and evaluation of results obtained
Walnut
"Exchange."
View
testing
from test aircraft in
Porter
&
for
aircraft under special condi¬
One such project involved
ing
General American
Billions in Dividends—Discussion of stocks listed
on New York
Stock Exchange which have
paid $8.3 billion in dividends in
1956"—"The Exchange"
Magazine, 11 Wall Street, New York
5, N. Y.—$1 per year. Also in the same issue is an article
on "Yardstock for Sound
Management," and a discussion of
Burnham
& Co.,
Co., Inc.,
5, N. Y.
Controls
and
tions.
&
Emhart Manufacturing
Company—Analysis—Parrish & Co., 40
Wall Street, New York
on
and
Fulton
—
aircraft
in
struments
Los Angeles 17, Calif.
—
Force space
general area of the Glen
plant.. In
this
regard,
Radiation designs and installs in¬
Martin
stations
Eitel-McCulIough, Inc.
Memorandum
Walston
265 Montgomery
Street, San Francisco 4, Calif.
Air
the
in
Corp.
Company—Bulletin—Shearson, Hammill
Grand Avenue,
Castle
Pine
on a
foot building
plot adjoining the
square
320-acre
a
on
just completed
was
28,500
new
—
able
Thursday, February 14, 1957
:..
.
,
<
Box
Wall Street
EXCELLENT
C
*
REFERENCES
2*. - Commercial -Ml
r
Financial
Chrcnide, 25 P*rlr>lace, ;■ New York
*; *
*
.
Number 5612
Volume 185
-
Financial Chronicle
The Commercial and
.
.
(781)
Money at
Work
As
Hedge
a
Panics do not follow great wars
adjustment which
never
camfe.
Why?' Why, for the first time, did
Suppose this company , was able immediately. The Civil War,end¬
in
1865." The postwar bodm
to maintain its margin of profit. ed
Its net earnings would be doubled. lasted two years. Prices were cor¬
If it paid the same relative divi¬ rected in late 1866 and the panic
dend, the stockholder would re¬ of 1873 came eight years after
ceive twice as many dollars—his the war. In World War I, we had
IS months of combat, 17 months
income doubled.
,
And Coping
,
.
JOHN L. GAUNT*
By
.
With
First California Company, Los Angeles
Vice-President,
That is the theory. How does it
work out in practice?
Recognized California investment banker-broker, in review¬
ing vital economic changes, counsels money should be put to
had bought the common
stocks of the 10 largest corpora¬
loss during continuing Uiflatrends by investing in real estate, raw materials, or
work to prevent
tionary
into one's
more
If you
purchasing
power
to
business. Mr. Gaunt states "money is* costing
own
ft profit jrole as M^ inceptive fa^ anfas corners^e
of
the
that whole¬
the textbooks tell us
exactly doubled. If we
sale prices
in 1950
money;
growing,
I
much
as
1861
an
the
at
begin¬
of the
ning
states
the
—
it
follow
and
to
through
learn
1866,
we
that
it
drop¬
in
chasing
pur¬
ped
to
take
;1916
dollar
"check" money.
much
as
to
of
all
1946 had
by
country
making
were
in
four times
—once under the Federalists, once
under the Republicans and twice
the
under
amongst
the
did at
rock!"
first
It can't be
beginning.
•.
it
somewhere around
the
what
old
professor would have call "stoff"
was
being produced for sale at
the end of the
as
period.
we
have three times
much money
chasing one-and-
Now here
one-half
times
"stoff."
the
We
end, there would be
rise in prices; we do tax
high as we can, we come to the
point where representatives would
defeated
be
were
to
noils
the
at
if
taxes
higher.
any
Then we have
ourselves, so we
from
borrow
That is the
language
to
have
who
If we sold
me—people
to
to
dig down in the
deposit box for cash, or
safety
write
check
a
bank
and
you
account
reduce
and
things and still can't
Now, here is where we get into
Your tax authorities say,
if
the
won't buy
themselves, we
know where the money is, we'll
more
sell
bonds
This
people
bonds
the
to
banks:
could
I'll
let
of
Bank
down
$1,000,000
sell
they
America
in
or
bonds
to
gets
changes hands. When the
low on cash to meet
pay-rolls, etc., it can borrow from
money
gets
Federal
flat
Federal
to
bonds
either
Reserve
case
or
even
Reserve
oil
1950
it
sell
—
notes—new and green.
In
war.
tion
in
grows
1940
we
as
fight
we
a
had in circula¬
this country $9
*An
San
address
billion in
by
Mr. Caunt
before
the
Dealers Association,
Jan. 28, 1957.
Automobile
Francisco,
War
as r
H
the
World
1917
this
great country had
debt—except Panama Canal 3s
that we're self liquidating from
canal tolls.
At the end of the war,
the national debt hadreached
$36
billion, at 3%%, 414% and
that debt down to $16 billion.
pay
War
II, we had 44
months
of
combat,
about
two
years of postwar boom, but no
Then the New Deal came in and
real
lion.
readjustment.
price
In
late
1946, the stock market, following
and anticipating a let
down, fell on its face.
Here ;is
what happened in 90 days. Good
precedent
sound
investment stocks that had
not missed
(such
a
dividend in 75 years
our
from
debt had
At
the
there;
was
In 1950 the build¬
vs. 104 or $17,-
219
same
or
one
war
end
it
ries
of
inflationary
shots such
hypodermic
if
(1) Aid to Greece and Turkey.
(2) The Marshall Plan.
■
a
i
total issue not to exceed $14,160,000)
Railway
Equipment Trust, Series A
y%%0 Equipment Trust Certificates
(Philadelphia Plan)
To
mature
'
$97,000 semi-annually August 1, 1957 to
February 1, 1972, inclusive
guaranteed unconditionally as to payment of principal and dividends by
endorsement by Norfolk and Western Railway Company
MATURITIES AND YIELDS
(Accrued interest to be added;
forget
you
everything else I say today—
Yesterday's
in
business
was
done
yesterday's dollar.
Today's business is done in to¬
Feb.
1959
3.65%
Aug. 1957
3.50%
Feb.
1958
3.55
Aug. 1959
3.70
Aug. 1958
3.60
Feb.
3.75
1960-1972
day's dollar.
will
business
Tomorrow's
done
in tomorrow's
be
dollar.
1965 business will be done in a
dollar—WHATEVER
company
million
tons
of
IT
IS.
had sales
company
$60
million.
produced
tons
a
in
the
1950
same one
and sold it
$120
carefully.
Their
business did not double. The dol¬
lar
shrunk
50%.
such
HALSEY, STUART 6L CO. INC.
million
at
ton it had sales of $120 million.
this
The
steel in 1940
If this
of
of these Certificates are subject to authorization by the Interstate Commerce Commission.
Offering Circular may be obtained in any State in which this announcement is circulatedfrom only
of the undersigned and other dealeis as may lawfully offer these securities in such State.
Issuance and sale
that produced
and sold it at $60 a ton
/
as:
house.
this
stood at
,
outside.
Remember
1941
4From then on, instead of pull¬
ing in our belts and starting to pay
debts, our economy received a se¬
Chase Manhattan Bank)
went down 25% and stayed there
(Second installment of
To be
a
By
climbed to $51 bil¬
$255 billion.
as
for two
started
we
cost
bath
some
4%%. Do you knoiv what that
Scotsman did? Hfe .made us
old
Deflation?
In
money and pay our
He certainly would not fit
modern ideological world.
our
In
at
Post World
an
no
20's."
Then
the
panic came in 1929
after the war.
No
•»
•••
(3) Put the money to work in
well managed business — your
Consider
National
into
The
years
Why
'
,
have forgotten
us
some
debts.
roaring
"crash."
hardwood
modern
the
A steel
in this way, the supply of money
and
"the
—11
Norfolk and Western
barrel—in
•
with
house
and
for
200
1965
other ways, but chiefly
you
have pre¬
from the loss
purchasing power?
was, $Ll0 per
sold at $2.33. r
index
one
grows
save
healthy
You know those years
=
a crazy idea that
during good
times, when everybody has a good
job at high wages, we ought to
000,019,2$
•
money
its
$8,000 in 1940.
Inflation and War
some
story
should be
high school in the
young
generation
(2) Buy good'real estate. A two
in
back come those little
in
bedroom
packages of Federal Reserve
In
deliver at peak prices.
The second phase is called
could
your
1940
a
deposit slip—an account is set up
and the bank gets the bonds. No
bank
period
anything
can
(1) By buying raw materials—
gold, copper, .oil.. For example in
Chase Man¬
government
The
50%
own
The
hattan.
every
how
1940,
served
ers
there is yours.
Somewhere around $12 of yours
and
$1 of the bank's fund.
So
money
growth.
normal
;.
effort to pay
had
,
to climb up,
that
,
of
«
an
fashioned Secretary" of the
Treasury •—Andrew MeHon. He
but they
fall down. Business faced up to
reality and in 15 months we were
to
controls,
old
its
government bonds, the
seem
debts.
our
Most
4y4s, dropped from 10 T to 82 and
one-half.
That postwar readjustment squeeze is painful; it really
hurts, but it doesn't last long.
Prices
We made
(2)
understand.
the
The
secret.
a
on
all
Now, if you had known this in
floors
on
story of inflation in
understand. That
simple
nation.
banks
don't have much money—most of
in
you
to
backlog
—„a
track. The stock market fell
ended
the market place.
hundreds of miles of main-line
face—and
we
government
spending
and left business to fight it out in
Idle
locomotives and cats were stored,
on
We
we can
taught in
of
trouble.
any
war
sell almost
bushel.
I,
large
our
pay our way.
"Well
the
can
all
,
1950.
in
to
get the bond —
there would be little rise in prices.
We do these
it
a
*
War
is why a Dodge car that costs
$1,100 in San Francisco in 1940
had increased to more than $2,200
sell government bonds.
them
It's that simple.
doubled.
as
effort
huge
borders.
the
in 1920-21.
"honey."
Wheat
dropped to 50 cents
World
.
all politics.
at each year
the
was
After
.
152%, or one-
times
with
a
it
(1)
withdrew from the League of Na¬
tions and kept within our own
years.
Businessmen's in¬
(3) The Korean War.
vestments, good ones like General
(4) NATO. :
/
Motors—an outfit that nobody in
the buyer
becomes critical.
He
(5) Rearm ourselves.
•
i
1946 would have said had caught
has
everything
he' wants,
or
(6) Rearmament of Germany.
knows he can get it from a dozen up with demand—went down 40%
(7) Point 4.
and stayed there two years. Spec¬
competitors. Inventories build up
At every point when the econ¬
and nobody comes to buy — at ulations, not "cats and dogs," but
good ones, where the facts are omy showed signs of normal post¬
current prices. Then business must
available and you can pour your war
shrinkage, it was given aii in¬
improve the usefulness or style
own
drink
according
to
the flationary shot of "government
of its product or cut the price—all
strength of your financial stomach spending" — and away we went
of these things are pursued with
(International Telephone)
went again.. Today, 11 years after the
speed and diligence. Volume dries
down 75%.
IT&T dropped from
war, ; the
money
in circulation
up. Red ink appears on the ledger.
30 and
one-fourth to. nine and stands *
at ^ $30,700,000,000,
This is the period of "agonizing
14%
one-fourth and stayed there twq above the 1950
'figure. The pur¬
reappraisal."
years.
:
chasing power of the prewar dol¬
Finally, after a rough voyage,
The Dow Jones Industrial Aver¬ lar, down to 56 cents at the end
the product is right, the price is
right, and we move into the third ages went down from 212 to 161 of the war, worked its way back
phase—"the resumption of nor¬ and touched the same bottom to 60 cents during the minor de¬
mal growth." This is a period of
three times in the next two years. flationary period of 1947-1949 and
sound, slowly expanding, healthy
then steadily sank to its present
The financial world waited with
business, which lasts for a long
Continued on page 30
bated breath for the radical re¬
period of years.
I'm
remember
"post-war boom."
period when business
tremendous
a
up
squeeze
And
came
deflation refuse to appear?
,,
cents.
"post - war
price
readjustment
squeeze." That is the period when
,
•
.
75
the
during
when
were
1940 rate.
around
of demand for civilian goods built
It must- scream our heads off, but we are
be something we always do — still working in a competitive eco¬
what?
If we paid every bill as
nomy. So the balance was struck,
we
went
along in a war, with one-and-one-half goes into three
taxes levied to balance the budget twice and the dollar price has
little
brief look at deflation.
a
called
catch
mines and oil
growing, digging and
pumping products (not made in
factories) at about 135% of the
wells
him
who is without sin,
you,
the
throw
"Let
Democrats.
around
turn
Then
readjustment
back
1812, the Civil
and World War I, the dollar
makes
much manufactured goods as they
and-one-half
happened
should
we
That is the
this
170%' as
factories
the
and
cents.
this
Now
dollar
1939
56
a
business
managed
somewhere
is
1940-1950 pe¬
At the end of the
riod,
-
the
than
;
Why did this happen?
The post-war busines cycle us¬
ually has three phases. The first
using a
follow
it'
big piece of charcoal, not a fine
John L. Gaunt
through to
pointed pencil, in all these com¬
1920
21
we
find that it dropped in purchasing putations.
Anyway, the average comes out
power to 54 cents. You all know
that
more
and
to
Please
sunk
much
figures.
well
think
War
up
cents. If
58
we
would
After the War of
All of the farms,
power
paid
you
twice
spendable money — .they were
about $30 million in 1940—and $92
million in 1950—ragain three times
between
war
what
earnings
over
regained about half of its former
purchasing power. It moved back
as
dollar—
paper
you
Bankers and econ¬
omists add demand batik deposits
around.
money
'
take
well
dividends
and take
times
three
is
That
you),
maintains its purchasing power.
had $27 billion.
we
for
Remember: Money at work in
for "their money's worth."
If we go back to the second war
with England—from 1812 to 1815,
twice
Their
been
twice the 1910
a
free capitalistic enterprise system. Believes if is about time
legitimate car dealers, major finance companies and banks
undertake an organized effort to show buying public where
and how to buy a car
than
have
out
me
sold them in 1950 for
them.
for
purchasing power
make a profit" Author recounts better public understanding
(no expert like
them
pick
more
make
decrease. To survive, ^business must
its
1940
could have
day and inflationary presspres continue to
every
in
tions
of postwar boom.
9
BAXTER & COMPANY
February' 14, 1957.
McMASTER HUTCHINSON & CQ,
-
i
10
The Commercial and Financial Chronicle
(782)
point
DisappointingHigh Bank Rates
view
of
of
the
the
.
>
•
lion
a
year.
»
"•
?
Alternative to Bank
The
"
F
-v.. -
,,
Rate Weapon '
of England, and
Jhe
community
will
now
Ahead
have to do" some hard
thinking to *
devise ways by which credit con-ditions could be kept reasonably »-
1952/ British economist recommends lowering of abnormally
tight in spite of a lower Bank rate.
Co-operation and voluntary action
*
the part of the banks, arid a
determined effort on the part of
the Treasury to consolidate part
-
of the
in
to
be lowered to 4%'.
reduction
a
four
five
or
Democrat
candidates
.
the
candidate
win.
appreciable saving on the tost
receiving
.On this
plurality'
a
would
lone
of
basis the Republican strategists '•
that the* Democrat candidates "'
the
Democrat
vote
and
the/-
divide
Republican
,
.would
have
the
an
excellent
of
t
lowing
Court
on
,
,
payments
the
time, ;the
same
But
'
of
,
,
land, dealers, speculators and
Most
from
the
written,
comments
forecasting
in
moderate
rise.,
the
Sterling
cause
.
favorable
of sterling.
Dollars
Repay
near
that-the
receive
have
is
really
whether
it
will
persuade the
regard
be-
the
be
trade
lower
as'a
ciomoi fQr another round of exag-
may
.
.
_
derated wages claims. From this
abandon, hope. {unds transferred to London in point of view U would be.adviseTowards the end of the month
connection with interest arbitrage able lor the Treasury to repay to
the markets developed a hesitatoperations
the International Monetary Fund
vestors
began
have caused
loans
tone and government
became distinctly weaker.
ling, too, lost
Ster-
fh
of its earlier
some
hi rift?'
mn v
it
wi
of
some
with
the
to be
settle
import
there are
oil, and that
of
immediate Bank rate reducalmost
were
abandoned.
\
completely
Unexpected
was
Feb.
on
the
7
ing power of workers in
of the Bank rate from
announced, the decision came
as
complete
a
Rate
,0
Cut
Even
surprise.
f££damentaI
other
before
of
4^
that it
cal
on
the
of
eve
the
reduction-cer-
fcainly gave no indication that
dealers, investors and speculators
were anticipating the change. And
commentators had put forward an
jhnpressive array of arguments to
show
futs before his. budget statement
111 April* ^For it has come ,to be
realized • that in -conditions such
as hav.e existed in Britain during
..recppb years,, the Bank rate-weaP011 1S largely ineffective.- There
change was not to
be expected in the immediate fu-
reviyaLof the >cult of Bank
rate-worship after the expen¬
se
enge
why
a
-
-
tiiForemost
these
amon*
•
.
ateu-'
tbidget position and out'ook. Duf-
big
the greater part of-January
the Stock Exchange was confident.
fnd
enable
rivphiv
the
Chancellor
of
the Exchequer, Mr
Mr.
to
wasva
make
Thornevcroft,
appreciable tax reduc-
tions in his Budget.
The publiPa-
tion of substantial Supplementary
3Estimates
case
turns
turns
gave
on
the
was
above
estimates.
current
rise
to
subject.
running
deficit
It
was
increase
reduction
of
muA
.
mpr0Vpmept'
jn i952
duei
was
not
disinflationary effect of the
«'e
but' to the
c-han^e of the terms of, trade in
Ba'"k
favor of tbe Sterling Area. There
h
w
h
•
fand thl
iDStance
th
.
effect
nrb,Pnt
out
reflux
a
.
.
g
.
of
of
the
foreign
Bank
considerably
worth.
is
the
true,
capital
the
Government
the
next Budget
For the cuts
expenditure
are
by
the
trouble-, thm
more
is
From the point of view of
balance
of
cost
extra
estimated at
payments
of
dear
alone,
money
S hupert
Co.,
I
11
investm
cheap
holders
ceive
a
year
of
sterling
as
funds
i
to
;
balances
higher interest.
From
the
worth.
Republicans
The
have
Republican ^governors and could
Republican senators iiyi,the event anything
name
restless.
ana
Insofar
as
.
members of
the
,
House
are
a
uaHy^ trymg to outdo the
Republican
about
in
ears
the need
of
ltaaeis"
•
There
Republican
SOrJ" ^ a counterpart, of. the„
c.,
t
New Deal falls
Congress.
a
&nd the Committee
;
that
has
upon so many deaf
been considerable talk
organization outside
the
Americans for Democratic
party,
Action
for^an • /Efficient Congress, to offset the labor
li
isrr.t a Question of making the Republican
4^R^^^:"slightestr--but simply one. of not,
P^^ftung.a labor part^td,^ke
r.o dotibt
t
ftbcut the need fdr„sdch
A.
.
.
v
•
•
over, the government.
an, organization
*
There is
'
:
r5&7'".
Trucksess
a s-
b
Coast
e e 11
Trucksess
a s s o c
i
e
a
e
ted
w\i t h
t h
firm
for
Past
^ears hi
Austin
curities,
is
Inc.
Stock
-
.
change.
He
Western
was
,
new,
officers
Stock Ex¬
Se-
formerly
with Colorado Investment Co.
.
the
wishes
(Spocial to The Tlnanciai. Chronicle
"and
at~a
re-
West Ninth Street.
Company, .114
The
.r
had-
special
"
Frank E. Naley, Vice-Chairman
Schneider
and
on
Germany.
behalf
extended
of
his
on
of., th
the occasion of the. ded
of
ceremony
on
Feb.
your
been
ne
9."
old "Frankfurt
Exchang
during
destroyed
U.
.
With Peters, Writer
the
best
•r
(Special to Tile Fxnanclal Chronicle)
DENVER.
Anderson
.
During Dr. Schneider's visit to
trading
.
mart, greeted
wishes to the Federal Republic of
the
-
bombing raid during World Wa
of the Pacific Coast
Exchange
-
Exchange
.
■
i
the
icatiort
guest of officers, of
Exchange during trading floor
ceremonies
luncheon.
Dr.
Joins Dale Hill Staff
was
members
Stock
Exchange thei
heartiest congratulations and!, bes
Schneider, German Consul
General,
and
Frankfurt
t
the
Eduaid
th
same time
The message read: "The officer
At the.rLos Angeles Division of
Pacific Coast Exchange", Dr.*
capacities,
with
-
on
appear
and members of the Pacific Coas
Stock Exchange, extended to th
Exchange joined, in
Frankfurt--(Germany)
Herbert A. TrucXsess
flashed
in San Francisco at the
Los Angeles and
Feb. 8 the Pacific
Saluting the opening,of the
tui¬
various
now
in
Francisco
Coast
e
was.:
,
ceremonies
Sarr
n
Exchange
ANGELES, Calif.—During large trans Tux tape.;. It
LOS
Company.
has ,-b
Agnew's' congratula
tory cable to the Frankfurt Stoc
Salutesfrankfut t Mart
dent
—
of
the
Mr.
Goveriiing Board Chairma
William "H.
a
PUEBLO. Colo. — Donald E.
Black has1 become associated with
Dale R. Hill and
overseas
whom
upon
have
a feeling that unless
something heroic is done
recession in the 1058 elections. One
Republican
House leader has told
me,, and: I agree with him, that the Re¬
publicans will never again get control of the
House unless they
find some means, of
oitsetting the influence of; labor leaders; in
politics. These fellows are
congenital Democrats andit is doubt¬
ful that if-the
Republican Party were to become
completely prolabor that- it would
capture their allegiance.
That is the reason
(hat the talk about ."modern". Republicanism which
means essen-
be
can
nrcK-peds
selors,
Herbert
is
compared with the
states
the
they will suffer
&
e n
announce
something like £100
money ^period,
Senators
.
■c o u n
*
million
to
to
election, the mortality table has seemed
taking over control of the Senate .within
concerned, there is
an
?
it
expected
a
-
.
that has become of dubious
even
vvhose
;
.
PHILADELPHIA, Pa.—Studiey,.
.
disaDDointing
s
But
T*
.
position
reserve
.
.
two,.Tncumbents, have bounded back with re¬
newed vigor and on the other
hand, a Republican, Langer; of
North Dakota—at- least he calls
himself .a Republican—is sericusly. ailing at 70 in the hospital here.
;
,
;
\
.* :
There is no gain
saying that the Republieans in Congress are
'
oY the'th^
prolonged abnormallv bi^h
-P
and
downhearted
In-anv-
capital^expenditure. But from
fhis is small comfort.
be
Studiey, Shupert Go.
,h
ProvSt -Sctbl^Ston. .ISf
second
largely offset
gxiint of view of the
*n
economic
gold
elected
meaos
diture
a
when the
-
Democrat
happened
the
.
^ee
pp ^g'. .
With Western SernrliieV
Official, quarters are beginning... .vv.111? western securities
the weekly Exchequer re- *° realize that in
existing cir. (Special t& the financial chronicle/5.
showed that
that cut
snowed
cuirent
the hi"h Bank rate
DENVER, Colo. — James VV.
tent pxnen--Cumstanees
expen.
thoughts
by
19o2,
in
f
econX^drKT hiaber
would
the
of
Trucksess V.-P. of
the previous
of
pass
dbubclui jf
aged
counted
claimed
"inevitable" techni-
was an
consequence
is
few months.
two
time
have to be
London.
.
Nevertheless, th e Chancellor
was rJgbt in deciding in favor ot
lowering the abnormally high
decline in market, rates of dis- Bank rate. He would be right 111
count, the attitude of'the markets* 'following up this move by'furtherthough commentators
a
be
now
some
improvement
replenished
Wants „ank
a
to
- may
for
may
appreciable
industries,
5Vo to 5%
safe
ahead, there
the coal
some
in
likely
serving their purpose, therefore, with the threat
the legislation or not.
.*
;
mqqn .or the vaunted Texas oil money is
are
they
,
sterling
considered
would stiengthen the bai^a
industry, railways and
reduction
is
from
Aside from the Texas
to favor the Republicans'
London balances,
uncovered
Although
thl
...
Expected
When
their
it
;
of
influence foreigners short'of Ster-.
bng
the desired-sense.";The
latter have so far shown-,' very
little inclination for covering their
sbort
positions - or
replenishing
u
trade -unions
than
sense
Bargeroa
all
in
Republican Senator in Texas would^do.
.
®
influence
wrong
become - accentuated, it is tiue.
shortages in .fuel oil might caus
u
e m p 1 o ym e n t or shoit-time
}
was
in
it
to
.
no
The
from
would
Carlisle
will
available to the Republican candidate at
any rate. This oil money
is conservative but it is
unlikely tnat it wants to displace Lyndon
Johnson as leader of the Senate which is what the election
!rf
JL™
the credit squeeze,
Stock Exchange boom, exa^geiated ^a?es
t?1311!?!! ]I°
Pressed forward^ and t e iisu g
wages-costs-prices spiral w ou 1 d
Payments
fense
tion
™
the
finance
to
spectacular1 cuts in deexpenditure this year, hones
an
secured
This
there
,
It
moment
k
iv,
deficits
earlier
European
and
dollar
of
to: paft ; with
recently borrowed
its
to
Union
dollars
possible
whether
^ized
had
Treasury
dollars
the
earliest
Democrats
on
the ground that sterling
December- Even though the gold
J :zad® and uonar reserve now includes
1!J
yJJ*??bo rowed dollars, its relatively
became known that, so
J|. .Nor nastne can,ge£oi intiar bigh figure conveys a false feeling
gaining gold in, January,
!°on^^ eJ; L
! oC s^'^ritv. which is more likely,
far from
the
the
at
^
improvement, and-the decline of
Treasury bill rates came.to a halt.
When
withdrawals of
to
ing
run-off.
a
-
else
or
been-up; in The aif for the past several weeks has deferred the
Republican strategists from getting underway. Amid Democrat'
.charges..that'-a huge slush fund .was being sent!.into the State to
elect the Republican, the Republican
strategists have been afraid
to do anything for fear it would insure
passage of the legislation
through the Senate.
In the meantime tne weeks have rolled
by
until they now have only about six weeks before
election". The
to-
not
rate
vote
its ancient Democrat
moorings in the
Congress or state officials ."
proposed legislation for a change in-the election Taws
is, as this is written, before the Texas Senate.' What the Senate
will do is problematical but the
very fact that the question has
however,
unions
a bill requiring
:
April 2 election must5"
the
The
-
nossible-to
Bank
be
to
of
majority
matter of members of
IMU
to
matters,
♦.
passed
weex ago
a
winner
a
that it has turned
ail
-
for-the
,
has been haunting them from the
probability defeat the
strategy and. the hopes of the Republicans; Although Texas voted
again tor Eisenhower last November there are no indications at-
•
What
,
was
weaker, presumably
the lower Bank rate
is
forward rate
ab¬
further
slightly
in-
rate,
spot
ex-
or
,tuxe about
the
^
possibility, of the law. being re¬
the rules changed in the middle
The lower house of the Texas Legisla--*
outset.
drawal, while unfavorable for. the
response
far from
was
future, and the Stock Exchange
acknowledged the change with a
the
of
markets
all-out-
an
the-
of the game,
holders of' sterling
to
This should * go some
way towards offsetting the effect
accentu-
an
rate reductions
Ban^
the
Indeed
rate.
the
stained
of Eng-
Bank
,
balances.
aggerated.,
a
weekly meet¬
ings of the
,
from
of
announce-
change fol-
Einzig
fit by the reduction in the interest.
Bank
without
day
Paul
Amidst the wave of optimism in
January the authorities abstained
At
to make
campaign in-his behalf.-;--
swung in the opposite direction it covered
by -forward
exchange,.
was considered
safe to lower" the^transactions,go .that their with-
Thurs¬
lowed
Dr.
balance of paymentswould bene-
effects in the form of
when
m en
ing is continuous.
reducing the Bank rate, for
£eac of exaggerated psychological
Thursday fol¬
the
cessions.
"chance.. They determined
tax con-;.
some
withdrawals, of foreign ♦
ated
boom<
But now
that
the funds engaged in
interest- arbimonth."
psychological pendulum has trage. In any case, such funds are; "
But
!J
their nature non-repeatable, while
the rising trend in current spend-
Chancellor to make
•
would
figin^d rightly
Together with
.
/LONDON, .ENG.-.-*- Throughout
January the City was confidently
expecting a Bank rate reduction,
in anticipation of which the Stock
Exchange and
sterling were
v e r y "firm
during-the
greater part
one;
and
Republican., Under present law, unless it is
rewritten-before this article 'appears in prifit,"
appreciable cuts in defense expen¬
diture,
it
should
enable
"the
*
Mews<
where it had high hopes-of
capturing, next :
April 2, control of the Senate through the election of a.
Republican >
in a
special Senatorial election.
There are..
would'result-
of the public debt.
■>
outsmarted in Texas
floating debt; should make
were
\
"Moderh" Republicanism seems by way of Laking a Ticking inits first set-to with the Democrats since November; It ha|; been
possible to prevent an unwanted /
credit expansion even if the Efonk
-Such
fc,
r
-
*•>„
it
rate
,
By CARLISLE BARGERON
.
on
high Bank rate to save extra Budget cost paid to foreign hold¬
ers of sterling balances since it has not improved the terms
of trade. Dr. JEinzig trusts that cooperation, voluntary bank
action, Treasury floating-debt consolidation will prevent un¬
wanted credit expansion, even if Bank rate were lowered to
4%, and benefit balance of payment position. Author also
recommends repaying IMF dollars borrowed in December to
remove
false feeling of security and basis for trade union
higher wage demands.
*
romJFas/n'rigfon
Bank
banking
Contending that the Bank rate weapon is largely ineffective
and was not responsible lor the economic improvement after
•
>
' "
,
.
By PAUL EINZIG
budget
extra cpst is well over. £ 200 rnilr
Thursday, February 14, 1&57
area, a copy
of Pacific
is
Colo.
now
Kenneth
E
affiliated '-wit
Peters, Writer & Christenseri, Inc.
724 Seventeenth Street.
Volume
185
Number
5612
.
.
.
The Commercial and
(783)
Financial Chronicle
(it
»«t.
vm
'?■*
,
■
The never-ending search for
,
strange
> ► '
'rV-»*
oil takes
men to
♦»
* • <
-if4* t v.*. * M * *1
IS
»V
places—even to ocean floors.
Here Mobil scientists; the first company team
of
"
research
geologists trained as skin divers, probe
the bottom of the Gulf of Mexico.
BUSINESS
:
-
>
CONFERENCE
en
the Free WorLd^to
ous
and
guarantee you a
abundant flow
of the
continu¬
thousands
of
Training gd^fogists as skin divers is but one of
Mobil's" pioneering methods
of exploring
petroleum frontiers in a world where
ever
-This
more
difficult and
new
oil is
expensive to find.
progressive policy resulted in the first tap¬
ping of otf-shore oil reserves out of sight of land
—another
write
//.
S
,
s
v
f
v
:
'
%.
s,
1 'J;,
'&J$L
Mobil
"
v
-
'
Co. Inc.,
York 17, N. Y.
-
'<
323333:
2400, Socony Mobil Oil
150 East 42nd Street, New
''/
S3
to Room
A
'
'"yji "y,
example of Mobil's master touch in oil.
,jy,
,,
v
'V '■
SOCONY
MOBIL
Leader in
for 91
OIL
CO.). INC.
lubrication
years
t
12
(784)
The Commercial and Financial Chronicle
LETTER TO THE EDITOR:
What Shonld Be Oni Money Policy ?
In agreeing that a
will not
3% progression in the volume of
.
Lack
I
the
d
and
"The
E.
Spahr's
Supply
Feonomic
of
article
Currency
Activity"
in
Commercial^and financial
icle
Dec.
of
1956
27
the
Chron-
out that the relations between the
ivolume
of
and prices,
money
in-
dustrial activity, the gross national
product and
the
variable.
national
The
It next
ably points sider
income
relations
be-
the
bank
member
*
«
'aI?°
often
an interrelationship
likely to be very loose.
is
but
of
shou d
reserves
more
or
less consistently
rather regu ar rateor should
fluctuate irregularly with tempoa
rary
I!
it or
It-seem,
.
primarily through their, powers
(which are not unlimited) to make
greater
a
or
Thus, they
encourage
reserves.
discour-
or
age expansion of credits and bank
deposits,, but in neither case do
they have power to compel a given
result.
The relations of loans and
deposits to
and
the
fluence
reserves
actions
of
Reserve
variable,
are
effectiveness
of
of
the
the
authorities
in-
Federal
with
varies
C0nditl0nSl
It
must
tion
in
inevitable
seems
address
to
the volume
much
very
variaoiiiiy.^.
banfe
on
thus
to
of loans
this
is
their
rir
Dr. Spahr ably
matters
economic
wmen
many
is
very
'ree
tion
in
the
quality of loans that
w
li
^
era!
Reserve
to
bank
the
authorities
of"
reserves
on
the
Fed-
but
to
member
basis
of
general concepts interpreted in
spectfic terms by their own judgWhat
What
should
these
basic
Drin
prin-
aDBOlute Power to
either
some
degree of
over-expansion or of liquidation.
Cannot Eliminate Business Cycle
It is
e
u
the
A
te-
n
e
i
'he Federal R:egerve authorities
.
.
p^bable
Prot?5DJ?
of reserves and the volof money should not
expand
will
re-
suit
reasonable to
meet the proper needs of business
and
Strici!upr0g^'
Although the
tion
of
goods
been highly
been
will
tend
to
re-
*
course
and
of produc-
services
has
irregular, growth has
characteristic
of
our
econ-
from the beginning, and the
prospective developments in our
omy
laboratories suggest that this characteristic will continue to prevail,
Therefore,
normal
it
course
appears
of
the
that
volume
01
some
some
However, it seems
anticipate that an
can
assJ
in the mitj.
nroffre«?«5
S
.
A reasonably
as
the
of
.
consistent
policy
to the volume of member bank
reserves connotes only small yearto-year changes therein.
Banks
and
an insufficiently rapid
growth of either will not
money,
of
r"fd obtainable6 lonKterm
rate of growth.
Similarly,
for
Deriods
mat, Peric>ds
selves much
of
.
that
in obvious inflation and all
its very well known concomitants,
rate
.
..
liquidation and readjustment are
not
not only
?,nly unavoidable,unavoidable,- but
but are
actually essential to the mainte"ance of sound business condi-
the
rapidly, because this
thp
dem¬
and
'
of securitV in these
greater than
and
businesses
adjust them-
tb
WOrld
*tandaeen
ea_
any-
larger,
less
at
and
more
uncertain.
3SS£SSJ5T5TT-
subdivision,
circles,
guch
that thege freedoms and
away.
slowly.
could .not
be
long period
a
situation
the
with
Federal
relative
Reserve
ease.
attvStion
^
yote
V°te
jh]
S0 much
mUC'h attention
.....
td
scien^
SCien-
to
to
,
fip_
materiarDt.0^tGSS
or
anv
if.
have
a
asristed
in
the
considerate
more
societv
Th
than
crearion
and
existed
p0ssibilities
of
in
thp
seems
unnecessarily
upsetting
either
We can > be sure that re-
con-
Way.
already adequate
serves,
pOI-t
lts f^1'
,
to
sup-
business
full volume of
a
at
a
-
„
ni
.
dr a
reserves
,
--
'
•
*
m
<Li
that,
to' decline
-
J
^
^ ^ volume busihess
*1 15a. baS£
3nd thereby '
rule,..go
as
ajread
wherever the; pressure
pressure for money
lack of
or
the
™e
less
that
under
mil
and
be'raised
is declining,
accelerating
qprv/P«? all
hneipber
^
materially
money rates wiU
i
ates-may,
with
jbe Harries of liquidation.
deposits and business.
2
the
is needled because the new
price level is lower, and thus feed
growth
.
with
money
rect the gold situation and did not
interfere materially with
of
A
..
stfcaHv
stically
ITSi™ d
equally fatuous idea
that
when
in 1931,
liquidation
or
that reas
way;
hrrmnrfirin
nf
an«
dictetes with-
woX
na<;f
on
all
inflation
1947
total
our
plus
currency
bank
deposits) have
rate
average
nually
also
of
been
The
rate
This
of
one
at
3%
an
up
Ajm
of
Reserve
The purpose of
Expansion
of
consistency and
reasonable,
is
not
the
mone-
tt
duce„
production. The aim is simply
to
of growth
actuaUy occurring
from time to tjme and
reasonably
on the basis of the
existing market
surveys of mdus-
companies
avoiding
for
the
g Jwch
jth
either
too
They
Since
«nrn_
corresponding increase in land,
a
much
reserves
the
of
future,
interferences
result
from
too
little
member
bank-
or
aTany othe?
are PerhaPs aa basic
single factor to the over-all credit
^
Therefore, their
*
move-
ment on a consistent basis wellcoordinated with an intelligent
.onger
.
'frm
Jate °{
and need
we
to
be
may
us.
tend
to upset the
monetary and
business situation, on the basis of
or
that, fatjuous hope
gree
of
not
consistency
the
mean
'of
action, have been ruled
as we
of
progress
of
the
price
perfectly straight line
growth
of
business.
The
realistic hope is merely to elim—
inate unnecessary extremes due to
money
management..
At What Specific Rate?
out.
un-
plying
quantity
a
ordinated
a
well
as
reasonable
therefore
of
sup-
money
co-
possible with
as
concept of the need
from
longish
a
term
The problem has
been narrowed down to
something
realistic par for the
course,
but here we run into more
problems.
What is the exact par for
a
the course?
What
of
is
our
the
the
production,
of
volume
of
for
and
services?
our
volume
what
is
What
is
business
cor-
par
now necessary
whether
not
or
in
for the
to
con-
actual
r.e^?na,bly be
i L ^ W^F..Sb<?u d break out
1S. PeHtically impossible to
costs thereof without
c^eallon
more reserves than
,be s
contemplates,
(2) If Congress is unwilling to
».n
1
^nance
bve within a budget which makes
it possible to avoid inflation, and
live within the projected program,
Even if the Federal Reserve authorities are allowed a large degree
the "physical"
volume
rected
-
The*?
objective has b^en limited to
attainment of
stability
a
But
this greater de-
or
realistic concept that prices or the
it is
Partul]es frobL this line would
son}etimes be desirable or, if not
desirable unavoidable. Obviously,
tbere .y
bavf !°, be departures
be selected line of growth
a nu^ber of circumstances,
which.fhe, following may
be mentioned:
to the fine point.
Extreme
changes and inconsistencies which
like
does
P
®xPect®d
^
nSidly to any
which the authorities selected
as aPProPriate> or whether de-
our
down
this
..
Pra<~tice the volume of member
appropriate
in
.
ba±^f
growth in
projects
•
ntSv?11 S0I^e 1?^ca"
v? probable range of lines
sider
laboratories will make 4% appear
more
appropriate.: sometime, in
the future.
Now we are getting
point of view.
progress
more
Perhaps
industrial development
have said before
f
faster than Eng-
grow
higher rate of
a
deposits
for money should exert a powerfui influence in the direction of
consistency of
•
of growth representing
quantitatively Intangible"
fatuous
bebef that sucb ffrowth will
and
+iJ?apf1JbJ
has increased, but, on the
whole, the record is very gratifying
* h
*
course,
growth 1" tha
in
will, therefore, be entitled to the
confidence and respect of business
leaders and the public,
relatively
are
come
The concept of par for the course
win at least be
an-
turnover
not
1930's) and, therefore, feel
that they cannot plan
confidently,
period
Prices
of
(which did
the
inter-
grown
around
consistent progress.
some.
deposits
(excluding
compounded.
has
CToi
;«* volume of credit
y'
Since
money
rate
-
.
of
non-material
is the regult of advances
th
-
given price level, will not be
cnlln!i Th appeare
f
Se ^ather» inordinately increased,.' overnight
resefves ?
banks because business has temporarily
°
.? H"1!6
sam® receded, and prices have dropped,
nr!^rALin« r
^
3 f t °t witb tbe fatuous idea that the fall
r^"VeS S
in prices will thereby be corrected
h
IZiRIa
it
£ 3nd 311 wil1 b^ Wel1 in the futurO",
existed, would seem tn
to
have
humane
fronts
trial
.r-
approach, however,
likely that tjhe annual
to
reserves
will
be
small enough so that it will not be
a
in
ar\'.
:«•>
\
.
this
•
.
of autonomy
(which
is
cer-
tainly desirable), they still cann.®. g0.so f.ar as to make it impos®lble to fmance the conduct of
Government.
They
be very
may
changes in prices, and
is it growing and
re..^ ai\~ ^ have to cooperate
Wlth mfiationary moves but canwill grow over the
years?
These n0^
themselves above Conconcepts are realistic enough, but &ressthey are quantitatively intangible,
(2) If it is impossible to prevent
at
what
rate
.
The foregoing generalities are
not sufficiently specific to serve
as
a
concrete
guide.
If
we
con-
elude that
a consistent volume of
rate of growth
of reserves
is
preferable to any other changes
If therein,
at
what
specific, rate
the
authorities'
of
ance
be
with
increment-
all, it was
unusually con-
nf
.
pre-
to
might
ideal, but all
involved. V
-•.
20
rose
clues
up,
initial concept, and then to keep
it au courant* but judgment is still
apnu-
these
prices
than
niore
sidered
taken
*:
f
faulty
sumably adjust themselves
During
wholesale
little
op_
.
Even
if
the
Federal
Reserve
authorities should base their
pol-
icy upon a concept of a long
time rate of growth of
production
and of the need for
money, which
is merely
intelligent but not ideal,
banks and businesses could
compound rate in
a
and
not excepting the action of prices or any
other factor, both to arrive at an
anv
and balanee of powers both within
and without /Government
easily to small
complete
less regular changes
level, or
regular
a^ tbe information
which they can dig
worlrf
^eTaccom
notation;
more
more or
on a known consistent
polthan to changes which are
based
icy
can
economists to do the best they can
with the problem by the use of
served
very
well.
During this
the fcietart period,
rates
all
Period, money .rates
moved
standard nf iiv;n« thp
has over
ovpr the
tbp map and the
fhp discount
dicpnnnt
rate
at
one
This has
point reached 6%.
This, however, served only to corpUshed by
:n
pl„p
^ere.^s| induced
rate
difficult to quarrel P
general idea that
volume
ume
too
been
and
" "the'^r'nossible'Vcrion'bv is aPPI0P"ate to °luT^LW^ch
the long time
gation of extremes, and tend towards consistency in the rate of
Federal Reserve Basic Guides
+1
with
years,
impossible to conclude that
able poli
ciples be?
t+
enterprise
9w
th^economicT'relationships "^and mov^efts 0/business mpan/.
actiri
o1
practical alternative
has
activiti
wbprp
absolute^oweTto tregulari,y
of
factors
any
the Federal Reserve authorities,
They way c'a11 uP<>n the ablest
in
one
period of little change,' they sud-.
denly jumped around 10% in a
single year but^ thereafter, again
grew-
Sl'tftJmidTtior^SUch'don6 eultufaT^dvanfes LvrCn en^pnPv i
hanced by material and scientific
^ency of
a1®® progress. The highest civilization
—nt
Judgment
Here, then, we have to come
back to the final reliance, which
must rest upon the judgment of
They did not recede appreciably in any year. After one short
those
creative jndividuals
ine
economic
reiauonsnips, ana
the limitations of
knowledge seem
to
leave no reasonably
reliable;
influence the volume
and
of
^fVeed^m'of'opporttniW
d
but
year
•
,
Relying, on Federal Reserve
much
neighborhood of 3 V2 %
scient&i^Droeress
cept of the growth of productive
power, or threatens a deteriora-
are
concern-
imormation
activities
re-
of the limitations of
averages, indices and other statistical mate-
rial, and the fact that there
.
f07%^t^rt^ividua°lf ^nd "or
,
alterna-
points out
;V
cf.iPnre
?
be
two hats
no
Vi'-'*-'*'"*
~
an
rate of
a
would
every
banks grew; at
ally.
4%
a
ofA^erieftopoliS
tive
increased
the
^%fcesn%hb/"7eatest^contributton
and
for
of women's hats in
alike?*'*
™
earnings of the British Railways
of
better ways ormaking
m
small
ours,
10%
-likely to tend to discourage
narticular aSDec
of livinc
that
lKinin in rrpdits and the volexpansioin
in credits and the vol- PamCUiar aspect OI living, mat
balanppd lifp
ume of money: so
rapid and so
'TA
prolonged that it is altogether out
—
seems
to
of line with any reasonable con-
principal
no
result
of
too
are
too great. In the two
decades before the first World War the
gross
of
growth of produce
ingenuity
portunities
^ei^^
=y#b^
InnaLh
int
nf ptw
1—
longish t/r^
term point
of view
a
rate
volume
u
creative
seemsi
prevent
mg
•
discourage^ extremes of
bank
tive.
many
to
and contraction. We
sh°ukl emphasize that we have
some
extent used the words "tend to discourand deposits, age
encourage,
and have not
and they have
power,
they
atten-
major
of member
and
because
Preferable
are.
direction and degree
ffnct to_
they ought to influence liquidation
volume
serves,
that
the
which
the
their
that
Reasonable consistency • of
smaller: growth of the volume of member
a
volume of member bank
..
dtainutions^n
the go!o£
reasonable to-condude
In practice the Federal Reserve
authorities exert! their influence
available
the
con-
volume
changes in such ..volatile or
tween the volume of money and potentially volatile items as prices,
almost every other economic fac- rate of turnover in money, degree
are
'
whose
fi
11
the
,
4%. rate
a
2%
a
The ultimate Source of progress
,
is
grow
at
or
social science nas peen me aem
advisable to
seems
whether
Nor will
of
rate
/
growth
much
like
Thursday, February 14, 1957
.
physical terms, when
money
necessarily result in
2%
or
be
economy
.
the production
each decade, and in neither decwill not ade did
employment vary over
3% progression in the 5.5%. For
the period as a whole,
production of goods; the
deposits of the joint -stock
of
services.
tion.
Dr.
Spahr's
progression in
3%
a
progression
money
business.
nance growing
with
would
slight¬
Constancy
progression ' in
T^JryTo'
oe necessary xo
win
money
that
volume
and
the years must be upward
over
/
Walter
of
"produce" a
volume of
of
Editor, Commercial and Financial reserves and the volume of money
Dr
course,
a
the
on
firm arithmetic formula?
a
History, I think, would tell us
quite clearly that a rate of growth
over a
long period of 1% per year
is not altogether
Nor would
quite agree
belief
.
operations conducted as customary.1 The Mutual Life econo¬
pointing out that this course cannot be followed with
mathematical: precision, details factors causing policy-depar¬
tures; advises reliance upon Federal Reserve judgment; and
prefers large degree of autonomy for the Fed. Relates reces¬
sion possibilities, regardless of excellent Federal Reserve poli¬
cies, to investment and loan character behind bank deposits.
called
the concept
as a
mist in
Chronicle:
production, provided, of
precisely at that rate
grow
basis of
of growth
rate
ly too liberal concept be seriously
damaging.
basic guiding
principle consistent and regular increases in volume of reserves
to "simply
provide a volume of money which is appro¬
priate to the long time rate of growth actually occurring from
time to time and reasonably anticipated . .
with interim
.
in
rapid actual
unreasonable.
a
"Chronicle," suggests Federal Reserve adopt
more
that
money
3% progression in the volume of production
or achieve a
deeired price level, James A. Howe, Industrial
Investment Director of Mutual of New York, in letter to the
produce
conception of the probable rate of
growth is a little too small, it will
not
necessarily interfere with a
.
should they grow, and must they
and
incapable
ment.
It
is
of
accurate
quite
clear
state-
that
a
inflationary increases
H13* is> increases which
in
are
wages,
in ex-
gallon of gas today is not the same
as
a
gallon of gas ten years ago.
tbe increase in productive
P°wer per man, t. e Federal Re-
It
serve authorities will be placed in
a very awkward position.
They
will
do
more
automobile is
orate
years
a
machine
ago.
How
work.
much
than
can
The
more
one
one
1957
elab-
of
ten
measure
cess
may
be
extremely
Continued
reluctant
on
page
to
40
Volume
With
Forms Denver Sees. Co.
Chicago Analysts
Announce Programs
(Special
eron
is
conducting
Cam¬
securities
a
DENVER, Colo.—John A.
has
Society of Chicago has High Center under the firm name
announced the following programs of Denver Securities Company.
Securities, Inc. He
was
RED WING, Minn.
Epps
(Special to The Financial Chronicle)
previously
with Securities, Inc.
Chamberlain &
W.
■
,
' CHICAGO, 111 —Wilbur E. Mc~
been added to the
of Cormick has
staff
the
joined
has
Munson
L.
Ethel F.
—
13
f■'
Boettcher Adds
;
^
(Special to The Financial Chronicle)
joined the staff of Olympian
business from offices at 1420 Mile
Analysts
H. M.
With L. W. Chamberlain
Olympian Sees.
(Special to The Financial Chronicle)
to The Financial Chronicle)
DENVER, Colo.—Duncan
CHICAGO, 111.—The Investment
scheduled
(785)
The Commercial and Financial Chronicle
Ndmber 5612
185
Inc., staff of Boettcher and Company,
Co.,
135 South La Salle Street.
315 East Avenue.
through June:
Horner, Chairman of the
Board and Chief Executive Officer
of
Aircraft
United
Corporation,
will address the group
their
at
luncheon
Adams
of
Room
Hotel.
He
Aircraft
will
and
Feb. 14
on
in the
meeting
on
United
aircraft
manu¬
speak
the
Midland
the
.
facturing industry._
Feb.
1957
21,
Invitational
—
Luncheon and Plant Tour,
Stewart
Warner & Co.—Principal speaker,
l»t»
i.I
^
t,
'Bennett Archambault, President.
«»» i
1? ■' *B< '
it
'
"
fcf
Feb.28,l957—Chicago\and Util¬
more
ities Forum—
(1)
.;
i
1:4$ — George R. Perrine,
Chairman, Illinois Com¬
■iHcVf
merce Commission.
for the American
Company Forums, 2:00-4:30:
(2)
Northern Illinois Gas Co.—
i
Edison
Commonwealth
—Willis
Proudly John Hancock wrote
independence
Peoples Gas Light & Coke
James F. Oates, Jr.,
Co.
—
Chairman of the Board.
(3) Reception and Cocktail
j
be the guests
J pating
Marclu
of the partici-
r' '
March
21,
—
American economy,
stability and strength.
billion.
John Hancock policy owners
Lowden,
A.
Fi¬
1957
Invitational
—
Americans
1957
To
-—
be
1957-r-Whirlpool-See-
$
.
i**
—•
CONDITION,
Short
term
.
67,465,066
,
18,
Cullom
1957—Shelby
Koenig,
P.
Railroad
Presi¬
Public
H. D. Starr, Vice-President
or
2,
Walter
—
....
utility
E.
?
Hoadley,
,
*+'
*
or
•
•
estimated
60,949,142
Guaranteed
Mortgage loans
real estate
Residential and Business
May 19-23, 1957—National Con¬
vention, Cleveland, Ohio.
June
on
Farm
.
.
.
.
.
.
.
Othef
(Home office and
other investment
Wiesenberger to Admit
Loans and liens
Arthur Wiesenberger & Co., 6i3*'* •
Broadway, New York City, mem-v.s,H
the New York
of
change,
on
G.
von
Axel
Mr.
Feb.
will
15
Nolcken
von
Stock
to
Nolcken,
on
84,985,436
properties)
Company's policies
.
„
Premiums due and deferred
.
member
Interest and rents due and accrued
;-
67,887,592
20
Arthur
TO
in Hecht
.$4,896,933,943
......
32,690,501
$4,424,320,357
POLICY
OWNERS
16,552,000
$
pense rates.
11,334,692
.
Total Assets
Feb.
FUNDS
safety fund
.
.
.
.
.
.
Held as protection against adverse fluc¬
tuations in mortality, investment or ex¬
41,182,129
.
Other assets
& Co.
On
.
General
individual floor broker and
berger will acquire
.
......
insurance
Exchange, has been active
in the past was a partner
.....
.
Contingency reserve for fluctuation in "
security values .......
partner-
a
.
Obligations
SURPLUS
47,322,242
:.)»
19,597,000
.
Special reserve funds:
Contingency reserve for Group
129,966,533
.
anc* °®cc
/.
113,287,554
obligations, including accrued
Total
Ex-7-'le^
admit
35,931,339
paid in advance of due date
special policy reserves.
expenses
Real estate
Charles
—
Thomas, President.
yet
Federal income and other accrued taxes
210,976,867
6, 1957 (Final Meeting)—
Monsanto Chemical Co.
22,878,533
of Insurance Commissioners.
1,041,154,321
.
not
Mandatory security valuation reserve .
As prescribed by the National Association
1,252,131,188
.
claims
policy obligations
Premiums
and other
221,090,465
Common
for
amount
,
reported.
282,039,607
•
•
90,724,374
Policy benefits in process of payment
.
Claims in process of settlement and an
F. W.
May 16, 1957—Clark Equipment
Co.—George Spatta, President.
339,941,280
including
payable to policy owners
.
Apportioned for distribution in following
year or in process of payment.
Other
Preferred
$3,769,269,776
.
accordance
legal requirements which will, with
premiums and interest, assure pay¬
of all future policy benefits.
terest.
1,021,668,920
.
Stocks
9, 1957—Chrysler Corp.—
Misch, Financial Vice-Presi¬
dent, or H. F. Diegel, Comptroller.
determined in
amount
with
Dividends
Jr.,
May
.......
The
274,254,614
1,131,325,031
.
Miscellaneous
Cork
1957—Armstrong
Treasurer.
an
VliJ
dividends, left with the Company at in¬
Industrial and
and Treasurer.
May
reserves
176,265,840
Municipal
1957—Cerro de Pasco
Corp.—Robert
as
l
31, 1956
DECEMBER
dowments and other payments,
State, Provincial and
Co., New York—Shelby
Davis, Insurance stocks.
April 25,
the
:
.FT
'
.vf 'X «v*oA.VT/'r
Policy owners' and beneficiaries' funds .
Proceeds from death claims, matured en¬
398,126
.
.
&
of
/ •,
future
308,706,927
?
ship.
'
OBLIGATIONS
Policy
ment
Dofninion of Canada
Cullom
bers
of independence for
guarantee
>>
t'
United States of America
an¬
Corp,—Elisha Gray, 2nd, Pres¬
Allen
solid
a
providing this guarantee;
part in
.$2,980,084,524
......
.
later.
11,
April
'
high of $4.9 billion
everywhere. John Hancock is gratefully proud of its
ASSETS
Bonds
ident.
Co.
number 10 million.
FINANCIAL
OF
STATEMENT
Long term
dent,
now
is
insurance
Life
family.
at a new
working steadily for national progress and
Report, the John Hancock announces an all-time record of serv¬
by Hancock life insurance to the security and independence
— now
Dayton Rubber Co.—
28,
April
Davis
assets
ice
FreedlandCr, President.
March
nounced
-
John' Hancock's
prudently invested nationwide in almost every phase of the
1957—National Cash
14,
Co.—G.
Luncheon
ger
rio's~
Vice-President.
nancial
A. L.
arc
bullion o£ pew life insurance was purchased from this
Company ip 1956, bringing the total insurance in force to SI8.8
BKesideni]
Register
And
his signature for American
proudly today, with this 1956 Annual
and
Over $2.
corn panics.
7^,1957—Link, Belt Co.-—
March
—
of the American
will
Party—4:45-6:00 — We
*
"10
Co.
Gale, Chairman of
' the Board.
/
'
family..
■
Marvin Chandler, President.
•
.
....
'
'
-
12:15-
Speaker,
Luncheon
;•
-v
.
103,000,000
353,061,586
,
472,613,586
Total
Surplus Funds
Total
Obligations and Surplus Funds .$4,896,933,943
.
.
Wiesen¬
membership
a
in the New York Stock Exchange.
Assets
are
valued in conformity with the laws of
the several States and as prescribed by the
National Association of I nsuranr.e Commissioners.
With Carroll & Co.
DIRECTORS
(Special to The Financial Chronicle)
DENVER.
Colo.
—
Richard
L.
Davis, Herman EnMinnie Enger, Fred T. Gar¬
ner,
Melvih R. Hansen, Leo J.
McCarty, Jesse L. Nelson, Darrell
L. Oaks,
Lee L. Rubin and W.
Howard Weakly have been added
Cadieux, Joe
ger,
to the staff of Carroll &
ver
Co., Den¬
Club Building.
With M. H.
Ralph Lowell
Lloyd D. Brace
Thomas D. Cabot
Lee P. Stack
Joseph E. O'Connell
Merrill Griswold
Earl P. Stevenson
Paul F. Clark
Samuel Pinanski
Dwight P. Robinson, Jr.
William M. Rand
Philip H. Theopold
Irwin D. Can ham
Edward Dane
E.
William Wood Prince
Charles L.
Ayling
Albert M.
Creighton
Daniel L. Marsh
Taylor Chewning
Edward B. Hanify
Byron K. Elliott
Georges F. Doriot
WU
Bishop
A*.
John
Hancock
pays
MUTUAL/ LIFE
INSURANCE
BOSTON.
*
Elected AFebruary 11,
A.M., 1957
benefits averaging $1,364,000 every
working day
(Special to The Financial Chronicle)
MINNEAPOLIS,
Minn.—Wood .
rus
F.
Horman
is" with
M.
H.
r
-Building.
-
A
COPY
OF.
THE
COMPLETE
ANNUAL,
REPORT
WILL
BE
SENT
ON
REQUEST
•f.V.
Bishop & Co., Northwestern Bank
'
_
COMPANY
MASSACHUSETTS
*CIyde F. Gay
;
i-
14
(730)
The Commercial and Financial
Chronicle
t
>
In
Continuing Foreign Aid
Mr. Batt,
former SKF Industries President, reflecting upon
chronic dependence on U. S. help and
leadership, predicts
to be with
problem
our
as
far
one
of
us
such
as
and
highways,
as
Actually aid to Britain
ended
in
and urges greater aid without
Terms
outstanding
Nine years ago John J.
McCloy,
of
the
Board, Chase
range
program
about
some
in
with
Bank,
and
I
this
opened
series
Nato.
point
In
we
Conferences.
if
I
cate
indi¬
substantial
Europe
of
the
the
contrary.
jects
were and
our
general
approach to¬
ward
them.
the
w a s
tain
then,
Win. L.
raiser
-
and
my
Batt
Responsibility
the World's
as
of
stand
we
Aid
for
the
on
Western
(2)
Is it in
interest to
our
con¬
tribute materially to the rebuild¬
ing of the disordered economies
of Western
(3)
Europe?
What is the
willingness
in world
Mr.
to
"
■
measure of our
interest
ourselves
Hope
Have
for
of
the
analysis
shocking drains
of
He
of
the
trade
energy,
and
finance on the economies
Western Europe, and the
of
simul¬
taneous emergence of the
United
States and Soyiet Russia as
domi¬
nant world powers.
with
He concluded
a
strong plea for approval of
Plan—then only in
the discussion
stage on the- floor
the
of
Marshall
Congress—and the fullest possi¬
use of all other
financing me¬
ble
dia
to
tation
the
of
end
that
of the
one
production
areas
on
the
said
and
I
reasonable
rehabili¬
two
greatest
earth
reasonably be assured.
jective,"
goal
And
problem—Hungary
our
doubt
no
of
tant part of the
billions
[in the past decade] are
something very different from
But why not look at our
expenditures
as
for
this
specific
a
illustration
When
I
have
concluded
might
"The
ob¬
prospect
of
attain¬
yet, almost ten
later
years
United
generous
States?
Have
contributions
last years been
wasted
there to be no end to
American help
of
our
these
effort?' Is
dependence
and American
leardership?
Our Military
First
it
Security
to the amount:
as
two
was
billion,
Aid
years
be
confine
question
a
deal
to
and
it
matter
one
cent
per
of
is, J
Which
since
matter
a
and to
of
me
vital
as
a
President
Aid
a
if,
is
a
a
as
should
major
strength
was
to
you
concern
part of
our own de¬
by
activities directly related to main¬
taining those military establish¬
ments
abroad!
Korea,
such
defense support.
of those so critical of
Aid
program
have
much
so
tary
about
deal
of
and this could
I predict, the
make
plank
American
in, a long-
*An address by Mr. Batt
before the
Tenth Annual
Forecasting Conference of
the Chamber of
Commerce
of
Greater
Philadelphia, Jan. 10, 1957.
of
as
it
Taiwan,
How
our
and
I
Foreign
for
of
the
Europe's
never
prewar
too
one,
gen¬
erally, of limited production and
consumption goals; prices as high
the
as
market
wages
thing
and
would
stand
low; competition
as
to
be
avoided
undesirable
some¬
wasteful
as
and
and
the
prime
and
only important objective of
business, the very largest pos¬
a
sible
return
the
of
to
the
„
major
One
owner.
objectives
Marshall Plan
of. the
help Euro¬
to
was
pean
businessmen
such
policies;;to show them .how
much
America
the
see
had
folly of
gained
from
a
philosophy of greater and
greater productivity, shared in by
the
that
elements
of
the
economy
benefited
mili¬
for
military
by
Con¬
our
repeat,
our
own
our
own
security!
what
considered
there
would
Economic
as
include
we
eration—the
ordinarily
Old
technical
Point
various
this
to
runs
about
five
worked
at
making
them, could also have them: the
joint recognition by management
and
by labor, that the benefits
In
years.
Of
changed
those
menace
earlier
but
was
this pat¬
nine
days, the
had not yet shown
truly
economic
in
and
purpose; most of it
rected
toward
Western
our
form
was
di¬
Europe
and those
drastically disorganized
trading areas to which Mr. Mc¬
Cloy particularly directed his at¬
tention.
so
much of Western
in the
Us
measurable
a
and much of the
way,
be
given
efforts
directly
credit
to
the
under, Marshall
ministration.
proved
United
revolutionary in
Europe, is really
taking hold there in
And
business
can
formal
Plan
It
was
for
their
benefit
Plan
conceived and developed.
was
been
stream
such
as
methods
"be *
Aid
the
in
United
see
varied
since
as¬
Re¬
in
about
steady
a
help
an
our
the
of
one
coopera¬
Latin
Ameri¬
must
program
be
outstanding
ways,
t'e d
p e c
equally
when
The
from
.we
a
Ford
some three
ing
field
and
country
im¬
portantly,
seen
by
by
as
and
look
may
has spent
this
areas.
succeed
under
the
unde¬
what may
now
to
ap¬
success,
pattern for
a
National
Association,
only
raise
ne¬
East.
amounts.
have,
many
as
for
to
East:
cretely,
to
to
which
less;,
are
wily
to "put
to
prone
fo
direction
years study¬
charting the
country.
Not
but most im¬
by the citizens
us,
seen
large
made.
One
France
'48
and
in
were
ing under
of
gree
As
far
now,
this
some
an
in
of
and
fall¬
much greater de¬
domination.
outsider
judge
can
this risk is largely removed
Productivity
had
will
bearing
a
surely
on
in
remarkable
have
France's
France
upsurge:
a
direct
-
abjlity to
compete with
Germany and is
already contributing to a better
understanding between those two
countries. Again a result, in part;
from
American
Aid.
This
new
East
final
be
must
1947
danger
Communist
as
today.
has
Italy,
real
Arch
Who
studies,
Is
can
hope
initiated
States?
I
can
There
Nine
years
McCloy
the
as
is
we
of
aid
effort
before
particular
I
con¬
significance,
consider what
we may face
then and in the Middle East, from
Soviet Russia. I remarked earlier
that
our
the
Far
Korea
expenditures
East
has
hundred
had
had
.countries
in
Vietnam,
bodia
this,
of
most
in
in
small.
—
1956
three
with
neighborhood.
Laos,
Thailand.
course,
aid
going to the other
that*
Formosa,
and
for
been
the
million
about the same
Com-
Some
directed
United
tonight,
ago
and
I
said
to
of
World seemed to
the
the
us
Mr.
that
you
West¬
to depend
United
States, and what
people were willing
leadership re¬
the American
accept
their
as
sponsibility.
I
am
unhappily compelled
challenge, except
to
that
renew
widen
it
to
countries
confines
There
include
outside
of
all
the
Soviet
to
those
immediate
Russia
itself.
a^e
many
lessons to be
learned from the last
decade, but
the
one
I
want
to
emphasize. is
that the greatest and most
power¬
ful nation ih the world must ac¬
cept the wide responsibilities for
that
automatically "go
Helping those who
is
I
of
one
them
that
say
to
be with
can
see.
termine how
peace.
[Ed.
marks
most
power.
AicJ
is
far ahead
problem
to
use
so
it
is
sure
as
one
to
de¬
wisely and
that it may
of
world
stability
the
in
McCloy's
same
the
a
and
;
,
Note:—Mr.
at
con¬
effectively toward
'
appeared
Jan.
and
as
Our
of
in trouble,
that is why
are
Foreign
us
•
re¬
conference
"Chronicle"
of
24.]
Scherck, Richter Co.
Wire to
ST. LOUIS,
clude my remarks in this discus¬
sion. .That relates to the Far East
and
the
solution that
no
economic future
ern
on
to
by
is
see.
because
Small
of
area
considered
sort
burned
fill that
seething vac¬
threatening portent except
sweeping program of vision and
a
them¬
of
Aid
that
is
of
uum
•
Far
Keystone
avail
of
public money,
that the greatest mistakes can be
happened.
Sound
any
planning and spending
sums
of
end
egoism
into his consciousness.
.set *i©f .condition
officials
should
these
of
of
the
unmistakable
government
R is in the
on
the
possession
Foundation,
particularly,
from
a
unless
self-inflated
that
signals available to
'con¬
better life, Is less prone
to Communism. And
just that has
way
lini,
of
constructively
selves
our
arrogant
Egyptian
leader cannot too long be allowed
to see himself as another
Musso¬
tribute
and
it
hnofe
of
with
unresolved
it will not settle it¬
with
country; themselves. There
developed from that study, a
promises
Western Europe
a
look
This
of each
Most
car¬
seething
self.
is
sub¬
some
wisdom
generous
who may be involved in the de¬
velopment and working out of an
aid program, public or private.
future
the
leadership
tomers and make, a
corresponding
contribution to an enlarged flow
of world trade.
When they have
property to protect and
some
Another Mussolini
of
Planning
clear
.
that
-
but must be
objectively
and
to;force others
politically
with
the
emotions and
results
not
Far
most
involved,
as
results
wise
James -P.
very
more
test
issue
we
longest period and
modest
failure.
grant
a
problems of the Middle
East is likely to come
very soon.
What is to happen
with
Israel
is no academic
question; it is an
of
whole and in terms of
money
e x
by
see
study
attempts
agree
A
then,
pressing.
must
putting
friendly
of
in
and
recent
Congress,
Calls Nasser
up
kind and another.
Nothing very
striking about it; many mistakes
-and.many failures but, looked at
and
A
How
to many
is! Try
it
settled
groups, the Foundations,
business organizations and
finally
ad¬
-
solely, that the Marshall
its
the
most
Government,
can
it.
leadership in helping to rearrange
stabilize the
desperately un¬
the standards of
living of a peo¬
ple, obviously, their cQnsymption
increases
they are better cus¬
the
itself, and the larger part of
aid
to
now
States,
the
the
over
in
for
praised
so
well
United States.
ligious
a
to
concludes
on
to
more
so
of
program
States Aid
hundred
course
much
other, the
first, here we
As to the
as
in¬
Foreign Aid Program has
without
in
part
-because
seemed
know better
,
listen
and most
of that, about
60%, actually went to Korea and
aid
our
the
and
1939,
the
as
seem
children
get.
be continued
ried
kind of people
appraisal
aid
the
tie
own
of
Richards,
East
resulting from increased produc¬ •future programs in other
tivity could and would be shared veloped or less developed
by all who had contributed^
We
million
has
any
pects,
to
Foregn Trade
to
on
glect two other and widely sepa¬
rated areas, the one Latin-Amer¬
venture
coop¬
de¬
But
in
East
unwise
you
form of
far
part made
-was
so
the need
tive
who
men
Aid—
of
done
and
ica
in
been
how
your
member
principally
small
a
same
vThat
-are*
our
on
is
impor¬
Keystone
Far
of
and that
much the
of
and
actually
the
they
so
is
have
Far
chose
where
over
resting
talked
results
effort
forward,
Four
kinds
be
the
world
we
have
we
the
us—but
it
area.
have
and
stantial
For
of
been,
American
most
peace
America
I
by better business
management. Goods priced so that
—
contributing to
security,
many
understood
was
and
purposes
gress
Soviet
subject
great
every
philosophy
we
of
at
a
per
how
sure
and
Latin
distribution.
been
t«
goods
sound
a
of
pivotal
Now
strong
common
billion seven of
foreign aid
direct military assistance
and
another billion plus, for
economic
velopment
assistance
toward
a
higher standard of living—all of
myself to the
I have had a
our
for
One billion of. this
that
help
lays
arch
an
our
ahead and
tantly, it
long-range significance, of.
had
Dromise
as
of
of
directly
in
has
lor
to
This
result
dollars
too
reasonable this will
our
this last contribution should
be lost sight of.
economy
spent
it fivps
years
for
re-
two
fense position.
the Far East.
think,
critical
coun¬
home:
hand.
this
I hope you will accept the con¬
clusion that this
philosophy, so
tern
misunderstanding,
be
in¬
importantly, two-
thirds of this total, went to
tries whose
military
requiring the fullest
there
national
our
and most
come,
do, with it in these
still seenis to me to
possible understanding
American.
It
hundred
amount
same
what
The
direct
small—
so
Europe, to make our aid
dependent on such performance
reaching
well.
as
a
this
in
prone,
as
be
extending
fluence,
value
are
million
never
of
way
our
today's
.
us
can
effective
to
Revolu¬
far
amounts
three
or
One
influence. It strength¬
military security far more
effectively than many times the
ens
about
all
actually,
seven
million for the
year 1956; a large
figure but only three-quarters of
called^—the
Question of Foreign Aid
shall
good
re¬
fusion as to what our aid
money
has actually been
going for.1
purposes determined
responsibility for world
leadership? Is Foreign Aid still
something demanding the
support
,
that
view, it will be easier to see, I
think, why there is so much -con¬
for
importantly,
and
to
part
the
belongs to
American
have
life
every
raising, if only a
shockingly low stand¬
living of tne people. But
the
country for technical cooperation.
frequent
incalculable
and
stimulus toward the amentanre of
of
variety of items included
under the
heading of Foreign Aid,
Pakistan
"is a worthy' Vietnam,
and
Turkey
believe one within received the largest amounts of
her
I
fiscal
past
the wide
ing
on
spent
that.
—the same general
problems still
t'ace this nation! Is
America meet¬
the
No, these
have
we
more
production
American
picture.
which
that
of
to¬
generosity. But this kind of need
is actually not
large or an impor¬
year
even
example and I submit
immediate
response
an
he,
ment."
,
aid
properly
of
normal
on
as
toward
the
two
deal
and
Industrial
will
larger market for
credit
aggression
indirect infiltration. Some
of
here
exchange
sponsoring
and
a
it
ard
that these insti¬
say
an
It
large
help
things but
outright
kind directed pri¬
or
the
problems
satisfied
from America—not alone
in supplying material
mind
emergency or distress
This is the simplest form
day is
that
in
to
relief?
"Eur¬
was
Recovery."
brilliant
a
have
problems?
McCloy's subject
ope's
.
gifts in cash
marily
for
Where do
it.
we
These were the main
points to
be made then, as I saw them:
(1)
for
revival
of
Dominant Economic Power."
question
hope
Communist
as
little,
American
every¬
accelerated:,
be
to
like
abroad
Europe?
began
firmer
talk¬
are
a
appeared
leaves
subject Was:
"America's
we
by
of
I
cur-
what
in
to
were
put to work;
needs, so long starved
destructive war and its after¬
math,
than
them
did
you
Production
sharply
was
Much
Do
sub¬
our
agree as to
results
to
are
results
living
tell
one
to
center for the
a
me
tion.
of
consumer
if
see
Great
no
of
of
the
information and experience.
less
aid
end
unemployed
bring
us
the
standard
people.
accrue—let
Western
economic
of
Western
plant visits and a matching of
operating
practices,
will
sound
very inconsequential to an Amer¬
ican, but to a European it is no
was
to
toward
improved
an
of
place, let
it
aid
truly
was
directed
again
briefly
what
first
that
ing about when we refer to For¬
eign Aid and our approval or dis¬
Itmaybe help¬
ful
the
is
well
centers
all
of
Cooperation
over-all
For
only
those early Marshall Plan
days,
and
stability
the middle Eastern picture. ■*
of
Fo recasting
of
Marshall Plan Results
our
intended to
Economic
provide
The
success,
measure
al¬
was reinstated later
aid directed toward increas¬
where
Chairman
was
1950
in
direct
,
tutions
strings to the Far and Near East.
Manhattan
of
productivity
formed
countries
Thursday, February 14, 1957
.
strengthening the ability to resist
of
Europe and a European Produc¬
tivity Agency has been set up by
the
Organization
for
European
predominant
December
been
though there
that
an
have
some
in
"sound Keystone."
the
productivity
Europeans is not
spasmodic, l -am - sure;
industrial
larger
share.
to
to
a
the
increased
part
-or'
National
railways
power,
and
receive
aid, which in 1956 amounted
helping Europe to become
industry,
Italy
determining how wisely and constructively such aid can con¬
tribute "most effectively towards a condition of world sta¬
bility and peace." Author reminds those critical of our foreign
private and public aid to Latin America
electric
the
local
ing Britain's military contribution
three-quarters of one percent
of our national income, that two-thirds of such aid in 1956
was
designed for our security, and reviews our success in
i
interest in
on
continental countries—France and
By WILLIAM L. BATT*
sure
'50, the bulk of
rehabilitating
agriculture, those public services
President, World Affairs Council of Philadelphia
American aid to foreign nations "is
ahead as we can see."
Construes
'49 and
toward
In the Years Ahead
I
'48,
aid expenditures was directed
our.
.
.
of
toward
Reynolds
Mo.—Scherck, Rich¬
ter Company,
320 North Fourth
Street, members of the Midwest
Stock
Exchange, have installed
wire to Reynolds &
a
Co.„ Chicago,
With Allen Inv. Co.
(Special to The Financial Chronicle)
DENVER,
Colo. —Donald ' T.
George E. Fischer, Ber¬
Giddings,
Jr.,
Donald
E.
Hoffman, Wesley C. Kettlekamp,
Jr., Philip M. Lorton, John F.
McGrath, Louis J. Megas, Joseph
Baker,
tram
A. Vento and
been
added
Investment
Center.
Harry Y. Worl have
to
the
of
Allen
Company," Mile
High
staff
Volume 135; Number 5Cl2
.
The Commercial and Financial Chronicle
.
.
(78?)
/, Vwere announced recentrv, are part:
r:oi ,a :>carefuliy-blanned program
/whidhtealjs/ for an1 expanded ,'fekecutive staff to anticipate, as well -
Emanuel Wolf Opens
'
.
'/-"i ••• /:
y
""
/ROGER W. BABSON *"
" By
'
;
*
; <
"have-not"
and
I!
/•
nations* and
'
-
looks
s
who .done.
.
B
'-spend?! *a r g e
./ • sums' of 'moil/ e.y Ah' n ewZ
~-
+
i pnten.t,
lighting/
'ecru
*
new
..intensive a d
•
'?
.
-Fund's purposes
promotion:
*'/'
Independent
'merchants
h.uSi
pay: J Uo.«>
nuch as
as
t h
1
e
chain
Roger W. Babson
'
g e
opeia-:
tisirig sphed in
.
newspapers and
they* must;
pay
magazines." Often
,
proportion¬
more
ately -"for. goods /. they Stock be¬
they cannot buy. in* such
large: quantities as the chains.
cause;
Also/ independent
w i t
h
" retailers
are
/
increasing- demands
higher employee
and
wages
greater fringe benefits after these
.
was
for- Massari
•
ily,
however;
the
'total ' cost
Their savings
dow? dressing
Selling Our Good§ Abroad 1
HOOKER
production into
our
own
our
bringing
in
of
down
distribution;
•
in buying, in win¬
and
ment of the American
way
These, products,
HOOKER ELECTROCHEMICAL COMPANY
"
urgently.; needed ; in ;mhny " /
parts of the world where disease are
of fooa and
However; no
succeeded which
raiapaiAt beCapse
other aeficiencies/;
as,
has. yet
plan
would
make
surpluses
in
Reports for 1956
»
-
Consolidation of
som^
nations available to needy people
in
other
the
ling
»"
.
countries
ot countries.
groups
H'
nations, without upseteconomic balance/; be -
•
individual
tweeii;
,
or>.
v
/•;.
/
-
help solve the problem
growing imbalance be-"
"have'/ and the "have-
the
not-
made
strides
great
in
vestment at the
ing
Conrnnmisna .has
nations
brought
additional experienced per-.
us
new
plants,
new
.
Eutope,
products in
phosphorus and chlorate chemical
field and hew markets,
the
tween
plants
the
.
Hooker Chemicals
Oldbury Electro-
Chemical Company into Hooker
sonnel,
j
We must
of
abroad
our
at
the new $12 million caustic-chlorine
our
Can Now Do
,
'
,
prefers .waiting on customers to
waiting for his turn .at golf has
little, to worry .about,
Tnere al- way$ ; Will be«a, demand? for; this
personal attention on the part of
certain customers/ They' are will¬
ing lb pay- for / this; personal jat-tentfph as well as /for; credit * and
delivery. / Of : course, .the' iridepenqent merchant must be willirig
are
Were
esses
$109,980,000. Earnings equaled $ 1.75
per common
share:
•
Fiscal Years Ended: November/30
•
RESULTS
OF
OPERATIONS '
(In thousands of dollars ex<5ept
advertise ;and
secure; a
formation;
l^et sales of tchemical products and services
Other income
Plus:
Del. Fund
;..,...
Equals: Total income
PHILADELPHIA, Pa,—The"aP- *
Service,' .with;" head¬
I
Employee
wages,
1,874
.846
$105,121
88,730
82,041
$. 23,124
$ 23,080
$24,523
.$25,942
transportation,
/
1
fgel,• local and state taxes, other costs 55,619
51,013
Depreciation on buildings, equipment $7,169
6,505
Leaves: Profit before income taxes
•Less: ;
; Consumers
to
,
adn.
night)/ where they_
and;. mid-
can
get
any
(desired-, merchandise.:.'-Thus short-
ens .the time .between the eon-;
sUmer's reading of an advertise^Zment and his. getting Juto a retail
store.
profit
.
v..
.'!.../.;.*
$
*
Less:
Cash dividends
Leaves: Balance of
'
Linton /Nelson,
.
"/
..
year ago from
his/
He
.
Curtis Publishing
formerly
of merchants to save the alumnus
of
the
University
of
keeping open evenings,
Pennsylvania's
Wharton
School,
by /cooperating
to
concentrate Mr. Steele rose, to the rank' of
evening
inquiries- through "one Lt.
Commander
in. the" United
capital (net current assets)
Total liabilities
$
5,082
5,386
Common Stock
$ 39,635
10,841
7,984
$ 31,898
$ 31,651
............-,
(shareholders' equity)
Which is represented by:
$4.25 Cumulative Preferred Stock
$
.............
,..
surplus)
to
4.96 to 1
X
$112,270
44,073
38,569
78,797
$ 73,701
5,000
32,295
7,304
34,198
32,285
7,300
29,116
1.75
1.72
5,000
SHARE DATA
Earnings per common share
Annual dividend rate per
Book value per common
group
5,991
$ 42,739
............
Current liabilities
Leaves: Net worth
PER
'
1.00
1.00
11.42
10.63
Hooker common share
share
'
-
/
expense of
$
..;. /.
Capital surplus paid-in
Profit retained in the business (earned
.
6,415
in
3.94
own
Cutting; this" time: in half
has fithe effect ; of doubling retail
and Procter-& Gamble Distributsales". Furthermore, it, enables a
ing Co.
A graduate and ac/ive
....♦•*•
$122,870
•
automobile. agency arid :"
was once connected in research,
.sales dnd administrative capacities
with several leading firms in, the'..'
Philadelphia area, including Scott
Paper Co.,- Sharp & Dohme; IiW. -
use
$ 11,377
Ratio of current assets to current liabilities,:...............
v
headed*
retained for
11,703
11,497
Total assets
Less:
t
.
year
11,627
POSITION-—Fiscal Year End
Leaves: Working
~i'i'Mr1.
Company,
.
Current assets
Less:
...
profit for
business.
our
FINANCIAL
^President.;, >
•/»•- <>♦
">>''*<' ;; -..,
Steele./Came .to the' Fund.
/
learn quickly (ariy
d
between/ 6
Federal'income taxes ./...................
Leaves: .Net^
$104,27^
salaries, payroll
taxes and benefits
Raw materials; power,
byr WV
1955
*
1955
1956
,
share data.)
$111,854
,
...Z....
Including:
-
.
nounced
per
$109,4^0
...
Our costs of doing business ;..,...,
Less:
pointments of Edward: A. Steele,.;
Jr. as administrative Vice-Presi¬
dent and Charles H; Dudichum as •
good
quarters at 6 Maiden; Lane, .New
York City. This /'service enables
for
195$
Steele, Dudichunr
.
:
*
Combining Hooker, Durezr Niagara Alkali and Oldbury
location with plenty, of ;show. win¬
dows, always 'kept, attractive! To
believe/ however, that he is des¬
tine^ to be pushed out of business
by -department,, stored or chain
"t
>
REVIEW
HIGHLIGHT
ing the1 problem of international .
•distribution would " thereby • * re- ;
Vstordsrpr"mail order houses is a
? mist'akenddea.;
Howard
Steeic, Jr.-'-Charles H. Dud/cbum
Z* *
Retailers can further be helped
/investment, .ufficqp!. ;of *. the'' $47 '
by the .plans' of the United In¬
million Delaware Fund were an-./
"
„
plastics, were
Combined sales totaled
^
-
about
developed and new prod-
introduced...
Canadian subsidiary,
largely responsible for
toward- solv- "
.
<
was
,
ucts, both chemicals and
Construction is nearing completion
plant of
year-end
Through Hooker research, new proc¬
*
."
'
.
Limited/Out other
expanded. Total plant in¬
were
$125,000,000.
further increas¬
diversification.
Positive steps
this.
Named by
The independent merchant who
time
DlVERSIFfCATION
■
:
,
products abroad.
AND
-
that we "will also take steps
sell, mOre - American- made *
to
YEAR OF
EXPANSION
do/Z
of life,
;;"What Independent ^Retailers
*
*
PLASTICS
display,
great contribution to* the better¬
to
!
"
-
mestic consumer channels, I fore- /
cast
ANOTHER
CHFMICALS
f
for
easiejr, and .cheaper movement of;
Z In addition: to making plans
^
•
■
"
.
Detailed
Annual -Report*
including
a
.
r
channel.
.
States Navy
Importance'of Distribution
He is
rapid rise of
our
country
to
a position of world power and
the Simultaneous expansion of our
industrial
give
ample
Poor Richard
Mr.
.
who
-
the Fund's
of
and
be sent
-
also
national
"
.
.
,
waiz nee£^s of ourselves" and
the
we
cap
our
allies provided a-challenge in production.
the
we
,-i
form
Wealth
ins
abundance, in
goods ."and services,
have learned to produce.
of
However, -we have peen
prac¬
HOOKER
ELECTROCHEMICAL
the Delaware
organization in 1S52. Prior, to that :-
Fund,
time,
several
firms.
Mr.
joined
'
;
,
Nelson
,:
said
-
-
.
these
appoint-'
others which
'Niegaro Foils, N. Y.
.
.
•
COMPANY
and SUBSIDIARIES
.
he
was
associated, with
Philadelphia • brokerage
tically standing still in distribu¬ ments, along with
Hooker
27 Forty-seventh Street,
request. Please write to Secretary,
Niagara Falls, N. Y.
is
distributing company, Delaware"
Distributors, Inc., and/ Assistant .'
N
Secretary-Assistant Treasurer of; ;
that
on
Electrochemical Company,
the
!
Club.
Dudichum,
Treasurer
.
produce
aboveandbeyondour needs. The
evidence
*h
economy
Association
six-year summary of the combined companies, will
;
American'
member of the
a
Marketing
The
during World War* II. *
'
Tiacomo, Wosh.
with
Fanner's /Union
,
;is -mdeh;more/10 ;be"
/v'Z-v.; "*
move the greatest grievance upon
they
.
share with tneir customers. They- which Communism feeds;,
„have made and
are
making a
•
Inc.,
Building.
"
affiliated
now
are
Kfensky.AT, Securities;
„
These chains have helped might¬
,
-
•:
concessions are obtained initially .Asia, and Africa largely because
by employees. Af big stores; Too 5»ov»et leaders have been so sue:- *
cessful in pointing to the "selfish !
many independent Tetailers have"
ana wasteiul'Miving standards in
already succumbed to these pres- :
the U. S. American movies shown
sures.
'
■
:
.
Co. and: Bache; & Co.
international
.
a r
tors for adver-
,
He
merly with Arthur M.
and policies.
'
-
yertisingand
.
for.
Investment Building.
program* he commented, will also
,i assure, a continuation of Delaware
Chain drug stores. There,.
and tne
store 'opera-^ hbvVevCr,
* ..."
.*
„
faced
(BpedlaJ to
WASHINGTON,
the. Chain. "5 and *10" Vapefy.;
stores;,,'the /cbaiii; supermarkets^
/
He'is hot keeping pace with chain
.
*
Four With Seet he. ; ¥
*' *•
of
*d|^%.hJghly^mpetittve' markets'.
i
better
'
/
FtNANcxst CHftbsrictB) •
concerned about the fate, tion,, except for the development
am
the independent retailer in. to-
of
for
"/ distribution.
•
,
.
*fHE
D. C; — EmanDEN \TE R, Colo* 4^ Leonard
uel Wolf is engaging in a secu-*Bachmeier,
Donald H. Carlsen,
as, meet, the fast-growing Fund's
rities business from offices in. the Arthur
W.
Larson
and
Phillip;
increasing", responsibilities.: This
'
Plight of independent retailer leads' Mr.' Babson to analyze
his problems and offer several suggestions to 1 improve his
competitiveness/ -Author also scrutinizes the plight of "have"
(Special to
Montague, Mich.
North Tonawonda, N. Y.
Spokane, Wash.
Columbus, Miss.
Kenton, Ohio
North Vancouver, B.
C,
r
/
16
The Commercial and Financial Chronicle
(788)
THE MARKET... AND YOU
By WALLACE STREETE
companies, has been expand¬
ing energetically and is far
from a one-product company
ponents of the Dow industrial
today. The
average.
portant one
is an im¬
in both cosmetics
and
drugs.
article
company
ethical
if
The
parent.
un¬
The
specific demise was
signalled when the industrial
anything approaching any
mass
liquidation
level. ,.In
dropped sharply fact, the most dour of all the
facets
was
the
depressed
through the support level
that had stood inviolate on a psychology
rampant in the
average
handful of
sinking spells all
last year.
Some
-
tr*
It
is
not
signal
in
however.
on
*
the
There
first
"bear"
the long runup,
In the fall of 1953
general heaviness the in¬
dustrial
Street.
tions
Steady Issues
many
situa¬
where liquida¬
.were
around
tion
has
months
been
and
underway for
logically,
these,
able to resist the latest
were
which
tics
line
not
quently
are
if
if
Shipbuilding shares, which
lately have quieted down
after being all the rage, were
swayed to some extent by the
market
gyrations, although
the benefits of the expanded
oil tanker building program
and defense work have
yet to
dropped downpull. Texas Gulf Sul¬
contribute materially to oper¬
phur, for one, has been hover¬
level. But the signal was a
ating figures. Newport News
ing within a couple of points
false one and the "bear mar¬
Shipbuilding has the largest
of its low for the last half
ket" was confined to a onepeacetime backlog in its his¬
dozen years, offering a yield
tory and the greater bulk of
day stand. The next day the of 6.7%. It stood its
ground it is for commercial vessels
list started
uphill and never
valiantly. And to some of its in contrast to the
periods
stopped Until the industrial
followers, Texas Gulf Sul¬ when naval
orders dominated
average
had more than
phur, the leading domestic the
average
through
'!=
*
was
high
for
return
.
*
*
a
sile
❖
Food shares have had little
ready large supply of pessi¬
popular following throughout
mism around.
The paramount
where
was
buy¬
new
ing, in volume, would be
tracted.
The
that
the
consensus
worst
at¬
was
the
area
around
433, where the heavy
selling after the President's
attack
was
would
finally
be
the
ar¬
outer
limit of
any further decline.
There
of
was
doubt
a
the
would be that
if
fair share
even
that
\
decline
steep.
Jfc
<
jjt
the market
upturn and
on
the
tional
Dairy,
for
shrug off the
one-day selling deluge
able
was
worst
in
15
to
months
with
small
a
plus sign and stand its ground
in the stock market.
such
Good Value, in
defensive
low-grade issues
t i
been
runup.
Institutional Buying Awaited
as
the logic
goes, there aren't
many spec¬
ulative excesses to be cor¬
rected and sooner or later
the
billion-dollar
pressure
same
essen¬
field, National Dairy
usually listed among * the
n u e
'
groups ' that
con-
high-level operations
even,
if
slack
off
the
a
economy
does
bit. Even in the
in the
stages of the market
upturn, National Dairy wasn't
able .to post a peak as
high as
that
reached
success.
ditions.
in
Some
been
at
only
yield.
a
growing mutual funds, pen¬
funds, etc., which has to
1954,
available
contribute to this
ije
year's
of
earn¬
ings justified most of the
cur¬
market
price with its
important operations
available at little
cost.
or no
•
illus¬
a
going well and, in fact,
helped boost earnings in the
just where prices will
eyes
bargain
status
in
of the professional
as¬
the
man¬
agers.
Little
in
York
the
of
from
at
to
general
P.
fice, 404 Montgomery Street; Mr.
McMahon
is
office,
Broadway.
115
the
in
With Inv.
(Special to The Financial Chronicle)
Mass.
John
D.
Henry
—
G.
Lund
G.
BOSTON, Mass.—John C. Vose
has been added
with
now
York
(Special to The Financial Chronicle)
Fioravanti
are
New
Planning
*
Aldo
and
quarters in the San Francisco of¬
5500
Trail.
Three With Palmer Co.
BOSTON,
partnership
Mr. Van Houten
Mr. Brown will make their head¬
kt'.-
Cournoyer,
Stock
announce
Feb.
in the firm.
securities
offices
Tamiami
Coast
that effec¬
1,
Richard - C.
Van
Houten, William Howard Brown
and
Eugene G. McMahon were
tive
admitted
Robert
a
Pacific
Exchanges,
presented
—
and
to the staff of In¬
vestors
Planning Corporation of
England, Inc., 68 Devonshire
Palmer, Pollacchi & Co., 16 State
New
Street.
Street.
'
ttT
Continued
jrom
4
page
J.'im;.
Observations.
dition most favorable to
lar
importance,
•
•
misleading shareholders, and of particu¬
unnecessary litigation.
stimulates
around its best
and
«
the
*
consequently
vulnerable.
its
way
of out¬
right distress selling
was ap¬
price in
A
more
an
even
the company's efforts to
year
increase
hint of
production,
a
clear
booming sales, haven't
helped the issue turn into
market
leader
but
a
have
Bufferin,
although
like
the
-
of
Bristol-
other
drug
in
pressures
obstacles,
And
it
and
equal
be
must
support
including
shareholder
the
in
its
of
elaboration
of
of
in
great
his
both
for
that
exert vast
can
position;
shouldering
the
opportunity
remembered
framework wherein management
a
%
contrast
re¬
this
addi¬
to
the
blocking
expense,
position.
The Readily Available Remedies
amendment of the
statements
of
both
The method of
uncertain
rules
the
by
well
as
tration.
provision
be
can
easily attained by
by limiting the
management
shareholder
and
to
200
words.
providing for equal scrutiny is rendered more
less definite wording of the present relevant
the
as
space
Commission's rules—as simply
Commission's
attitude
toward
their adminis¬
#It interprets its rules X-14A-6(e) covering "preliminary
proxy material" as preserving the management answer for the
information of the Commission
only, and as affirmatively barring
it
from
informing the
him to examine it.
This
the
writer
strongly
Commission
the
on
of
of
ground
proposer of its contents
from permitting
or
1
disagrees
with
this interpretation by
X-14A-6(e) which it bases
its clause barring public inspection."
Surely
its
relevant
rule
consultation by the Commission with tne maker
insure the accuracy and completeness of
of
a
proposal to
management's
or
answer,
examination
even
by the proposer, do not constitute "public
inspection." In fact, such communication with the proposer is
specifically provided for in the Commission's present rule, which
states, as an exception to the "confinement of information to the
Commission only" provision, that "the Commission
may make such*
investigation in regard to the material as may be
for an adequate review thereof by the Commission."
or
An
Easily Avaifable
Remedy
However, if the Commission persists in its restrictive inter¬
pretation of the present rule, it should then amend par. D of Rule
240. 14a-8, which already orders the
furnishing to the shareholder
of
statement of
a
intended
to
be
management's
omitted, to add
with respect to proposals
simple provision requiring the
reasons
a
contains the contrpversal material commenting on the
shareholder's iproppsgl.
Tr
.
If the.Comthission perseveres
proxy
in excluding from its proposed
revisions provisions which arfe designed to assist the public
stockholder in
obtaining fair consideration and
entation of his proposals, it is
are
negligently focused
contest between two
on
its role
are
the
by Philip
well-past
of
Morris
6%
mere
watchful
aims
umpire in
powerful intra-corporate groups, to the neglect
if
if
.
if
if
...
long-existing lack of reliable reference
work
the many problems, legal intricacies and
the
ing the above 7% return of¬
fered
a
from proxy contests and threats of
were among
some
as
pres¬
dealing with
new techniques
resulting
contests, as well as an over-all
up-to-date compendium of the rules, is now fortunately filled by
a volume,
Proxy Contests for Corporate Control, by Edward Ross
success.
Cigarets Strong
group
adequate
of the scattered shareholders!
The
Post-Cancer Scare
this
an
justifying the criticism that its
with
higher yields for investment-
promotion
tional
story;
*
helped it hold the line
grade issues, not the least be¬
a
in
his
verification.
or
exists
the
for telling
space
buttal
bleak report. So far this
bit
was
equal
Shareholder
conditions, then, the shareholder is denied
ment which
would have been
good share of
popularity traces to
successful
Myers,
a year
Double Hindrance to the
portantly. Without this help
it
Cigaret shares
#
A
Under present
management also to furnish the shareholder proponent a copy of
at least that portion of its
preliminary copies of its proxy state¬
the other
its recent
*
Barth &
only.]
in
FRANCISCO, Calif. — J.
Co., members of the New
this
any
final quarter of last
year im¬
its
sume
business
North
necessary
sturdy spots in the
Drug stocks weren't at all
general heaviness, most issues
keep will be hunting obvious
among
the
casualties
for
well deflated
bargains in the stock list. except for
long ago by the
Bristol-Myers
That leaves
recurrent
had
cancer
been
only the question which
scares.
In
hovering
of
engaging
last
5%
sion
earn
is
inquiries
Chrysler Holding the Line
recently
shade under
❖
estimates
what its missile business will
trating the neglect vividly. It above-average
has
It is among
to be
..
latter
.
Consequently,
is
was
Chrysler, well depressed by
year's poor results, was
a
shining light in the motor
Defensive... group. Its new models seem
As* the leader in the
stages were marked by rabid
speculation that carried the
That phase has
reached in' this
a
Issue
and, the
work,
the companies where the
gen¬
eral agreement is for higher
record this year. Earn¬
tial food
tastic levels.
with fair
other
steadily in the
postwar years, posting a rec¬
ord last year and
anticipating
classic case, in
1929, the final
never
those
are
Equalization of the
fight off the downpull
have increased
as
to near-fan¬
able to
with good success later. Sales
new
rocket
and
rent
ings have followed the
case
with
They
SARASOTA, Fla.
Horn
*f
showing, Na¬
mitigating factor was a steady uptrend.
negative one, as is frequently
In previous
runups,
those in 1946, 1937
if
Tire,
earnings this year than last
despite over-all business con¬
instance,
superior
a
...
The
some
in this group were able to nut
a
,
-t
.
General
only lately
quality
being appreciated for its mis¬
issue.
nal" break which contributed
that much more to the al¬
rested,
Three New Partners
'
.
decidedly limp after the "sig¬
heart
in
necessarily at
category.
producer and, in fact, in the
world, offers an unusually
iff
The market this time
at
J. Barth & Co. Admits
similar support
a
doubled.
question
was
com¬
Robert Horn Opens
and
if
expressed
not
those of the author
as
its principal
long ago conse¬
now contributing
less than half of total sales.
week
SAN
views
do
coincide
*
this
plus sign among
"Chronicle."
were
too
break
[The
time
if
if
Margin accounts
Similarly Chas. Pfizer,
derway since at least 1949— seemingly were
in
pretty
once
a
moderate
size
pro¬
there
is
still
dispute over good shape, except in some
ducer of bulk chemicals, has
when it actually did
get go¬ of the low-priced issues which
ing — came to an end this were getting to levels where grown into a leading pro¬
ducer of drugs and chemicals
week, at least to followers of house rules dictate a cashand a pre-eminent producer
some
of
the
better-known only
basis.
Volume, while
of the mycin drugs and the
stock market theories.
picking up markedly on the
newer tranquilizers.
❖
❖
Antibio¬
*
easiness, was still well under
long bull market
the
on
the sole
Thursday, February 14, 1957
..
.
yield
and
Arannow
A.
Einhorn; Columbia University Press
It will be useful to the lay investor as well as
the lawyer.
if
if
if
if
if
Reporting the Glamorous Hits and Ticks
Is
the reportorial
writing of ball game and Stock Market ses¬
similar in bearing little
relationship to the actual events
being covered? Asked this question by this writer at a press confer¬
sions
the Overseas Press Club in New York,
Tuesday, A1 (Goody)
Rosen, long-time star third baseman of the Cleveland Indians who
has just retired from baseball to devote full-time to his
customers'
ence at
broker position at Bache and
Amendment in
in
American Tobacco. The latter
Herbert
and
(577 pp., $15).**
**The
in-this
or
left
boek
article.
withholding
is
In
editorially
iu
no
fact,
way
the
uncovered
a
responsible
main
in,
Company, carefully pleaded the Fifth
possibly incriminating reply.
for
points wc
the volume.
of
any
cover
1
the
are
<
•
thoughts
either
expressed
omitted
from,
Number 5612
Volume 185
(789)
Commercial and Financial Chronicle
T he
...
There Has Been No Mandate to
Of Area's Potenial
It looked like
stock
the State of New York
Bros.
&
their
new
a
Co.
Madison
Recently,
.
have witnessed the
we
to
mandate
a
of
this
single resource, its business enter¬
prise, by encouraging the tragedy
ing
key Administration
s
okesmen,
p
including the
President
himself, invitn g
Congress
i
the
cut
to
and
btidget
their
M. Shoemaker
Perry
tions!
J. A.
as
"an abdication of
responsibility." To many citizens,
their apprehension over the size
of the budget is equaled by con¬
cern over its confirmation of
the
"Welfare State." now but 20 years
old, receiving its greatest postwar
impetus.
will include
additional private offices. It
a special new business
department designed to conclude
arrangements for re-distribution
of large blocks of stock, or for the
and the
states.
assistance
to
5
some
million
An additional $1.8 billion
to Social Security pay¬
to some 9 million people.
added
welfare costs for
makes
some
year
statements
by
programs
munications
system has been in¬
their Salt Lake
a
flashes
veterans
billion, and
communications
ous
billion in
a cost of $2
the next four years. As
days ago, "A boom is on in
forms
it
the "U. S.
Report" said a
World
and
of
welfare
programs—
all apoears to be free
money."
the
21
further
A
terest
in
is
increase
recom¬
foreign aid.
trenchment
but
upon
The
money.
with
the
Each of
office
or
"all
an
use
simultaneous
station"
broadcasting
or
re¬
so
the
facilities
in
less than
half
An
feature
important
the
of
is that
it automat¬
segregates transmissions
to
according priority
flash traffic, thus
and
orders
insuring instant handling of
tomer orders.
were
to make this
new
be
sent
into
the
system
but
is
automatically held at the switch¬
ing center as long as there is pri¬
ority traffic.
A.
Hogle
&
of the
Company
New
York
pockets of United States' citizens
and corporations will be about $86
billion in the next year. Cash to
paid
by the
out
this
amount
is
Government
expected to
are
Exchange and other principal ex¬
and "have offices in the
following
York
Missoula, Reno,
Ogden, Provo, Spokane, Tucson,
Long Beach, with correspondent
offices in Boise, Twin Falls and
Pocatello,
Great
Butte,
businessmen, are not
satisfied with this philosophy; if
If we,
as
not satisfied with the pros¬
pect of continued high taxes, the
probable increase of payroll taxes,
then we, as individuals, must im¬
Senators and Con¬
determination to
have economy in government; our
press upon our
gressmen
our
determination to
take
of
by
but
Last,
will
there
be
no
business
how
eight
There
can
special large
be
The
office
started
with
representatives.
23.
Shortly there
will be 50. Unit sales,
incidentally,
exceptionally high.
interested in
Clients
buying the better
to Mr.
Beere, indications are that
there will be
vestment
a
great deal of in¬
activity in that depart¬
ment. He says
that the ladies are
showing more and more interest
bond markets.
reasonable
istration that the last election was
Mr. shoemaker before the
of Commerce,
Feb. 7,
Inc. has been formed with
ing to engage in
Officers
a
Net
*3
half of the year, rose to
1955.
earnings on the 663,618 shares of stock
$3.25
on
against
Oi
568,815 shares outstanding in 1955.
Continuing the long-term improvement
program,
$2,045,772 was spent on capital
working capital increased
additions, while
from $13,006,907 to
$14,415,781.
,
.
Highlights of the past five years, taken
from the
nual
statistical record in the 1956 An¬
Report, are given below. A copy
full report
of the
is available on request.
Vice-President
Truman
and
Secretary-
lor, Assistant Secretary-Treasurer.
Ross Securities
curities,
Inc,
N.
has
business.
Net
earnings
earnings
(per share)
K.
Dividends
Net worth
(per share)
Opens
Y.—Ross
been
Officers
1952
$147,889,146
$1,746,688
$3.07.
$2.50
$32,166,612
1953
$150,461,935
$1,536,870
$2.70
$2.50
$32,281,444
1954
$140,714,410
$2,254,631
$3.96
$230
$33,114,037
$2.50
$33,542,928
$2.50
$37,306,076
Cobb,
Treasurer; and J. Wesley B. Tay¬
BROOKLYN,
Net
Sales
securities busi¬
are
Pennell, President; Ted D.
rities
Sugar
provided facilities to serve the
growing midwestern and southern markets.
Total sales, including the Godchaux vol¬
offices
1955
$144,856,086
$1,850,929
$3.25
1956
$172,071,752
$2,558,258
$3.86
Se¬
formed
are
THE
NATIONAL SUGAR REFINING
100 Wall Street,
President and
COMPANY
New York 5, N. Y.
Eu-
Treas-
gene
Ross,
urer;
and Reuben Ross, Secretary.
Chamber
1957.
in 1956
Sugars, Inc. in June 1956, increased
MANUFACTURERS OF
by
Refining Company
Company's refining capacity by about
outstanding were $3.86 per share as
JACK FROST
•
as
the finest Madison Ave¬
in the stock and
type of blue chip investments.
$172,071,752 from $144,856,086 in
room,
example of nue Women's Shop. Here they witt
gotten out of have complete privacy. According
have
now
as
reception
delightful in appoint¬
an
you
customers'
are
modern and
many
ment
give
things
hand:
that
multiplied
Acquisition of the refining business of God-
for the last
set
members of
was
Increased Sales and Earnings
ume
least,
very
The National Sugar
one-third and
means
department
a
aside exclusively for
over.
Just to
of the city's top interior
in the Mercantile Securities Build¬
Sixth Street to engage in a secu-
talk
Business
handled will be
are
chaux
.
...
to the Ladies
Caters Especially
STATISTICAL HIGHLIGHTS
with offices at 1866 East Twenty-
Y.
and
Stocks,
By so doing
a
beginners in the
stock market.
will be doubled and the
area
amount
are
Form Life Stocks Inc.
will impress upon the Admin¬
anti-inflation action.
N.'
fice
exchange facilities.
gage one
would
Falls.
DALLAS, Texas —Life
ness.
about $83 billion.
*
plans. Evening lectures will
boom¬ the fair sex. So many of the ladies
beginning. have found this branch convenient
space
is already
that it was decided to make them
being used. Within a few days
work
will
start
on
a
greatly completely comfortable.
needed expansion program.
Of¬
They will have the use of a
branch the last
Stock
changes
New
private
a
also in the
are
most fastidious
the
to
sexes,
ing
from
the
Every inch of
One of the first steps was to en¬
word in stock
office
the-new
didn't mind.
determined
both
Actually, the cash taken from the
we
room
be conducted for
_
a
cus¬
Routine traffic may
side, Denver, Boulder, Idaho Falls,
July and amounting to al¬
most $72 billion, is only part of
the picture.
It does not include
the highway trust fund which will
amount to almost $3 billion more.
we are
new
and
library
conference
management thus made
that
times
equipment
re¬
budget for fiscal 1958, starting- the
be
search
of
that it would
serve both well.
But they did not
expect these features to be an
overnight success!
They guessed wrong—but they
Many parleys had preceded the
opening of this swank uptown
branch. Senior partner Walter D.
Floersheimer and partner Harold
Friedman
Sutro's
both
quickly as to make
doubling of space
the
spending
bookkeeping
first of
from
raising of corporate capital. A re¬
as
instantane¬
cities: Salt Lake City,
City,
Los Angeles,
Beverly Hills, San Diego, River¬
cents of the Government's income
dollar, emphasis is not upon
be
have
Hogle
members
With in¬
payments alone taking ten
more
office.
of
The expanded area
offices may com¬
municate directly with any other
J.
Emphasis Is On Spending
mended
the
across
major financial centers.
electronically,
proposed at
switching equip¬
orders
fording Hogle clients
most
all
town
out
many
will
from
country at the speed of light, af¬
ically
few
offices
ceiving hookup.
start.
building, one of the
dangerous Federal projects
progressed in our lifetime, is
News
The new fully
21
The electronic
ment
aid for school
to be
priority
from
City headquarters.
and
down for $5
are
the
billion, and
Secretary Folsom
$14
indicate that this is but
Farm
as
appeal
year.
handling of J. A. Hogle & Com¬
pany customer orders by a
new
Western Union high speed com¬
It is
proposed that the Federal Govern¬
ment will pay $1.7 billion in a
time of record prosperity for pub¬
each
come
iri the company's down¬
rapid
sure
they did not envisage public
and
Utah-
CITY,
automatic
and
augurated
are
us
many of them
back to invest and to trade"
taken
be
to
communities
one
Instant
responsibility is connects their
from the coast to coast.
More and more
This
LAKE
SALT
executions
that
many
area
automatic transcontinental system
proposed
ments
but
acceptance
Electronic Wire
conservative
Washington Senator characterized
is
every
Hogle Installs
State
Impetus to Welfare
A well known and
people.
women
tend to visit
also
curiosity. A great
while being able to see the
quotation board at all times.
Trunk lines have been put into
operation direct to the floors of
the
various
exchanges.
This
necessary
recommenda¬
lic
the
a
-
citizen in this country.
own
it this week
great
which unusual blues and
your
the not-so-distant future of
curtail
thus
surprisingly
.
spectacle of
immediate
find that a
shoppers in
"We
President, I urge that'
you give this situation your own
personal study and that you then
make it your further responsibil¬
W.
D.- Florscheimer Milton
J. Beere
ity to make known to your Sena¬
tors and Congressmen whatever
branch a few.months ago. True,
personal conclusions are the result they expected the office to be a
of
such
review.
This is not a success. They set out to make it
political matter, it is too impor¬ second to none in appearance,
tant to be either exaggerated or convenience and facilities.
They
de-emphasized by partisan consid¬ invested a considerable sum in
eration.
It is a matter affecting
special equipment and services,
further
hotels and
the
dot
vicinity.
means
As
seen
that
said Mr. Beere.
greatest
of inflation.
high,
too
and have
the
be¬
as
The result is
number of fine
ers'
the
threaten
tion
within the Administration
clubs
vacy,
health
budget being attacked from
great
representatives in individual
private offices. This enables their
customers to enjoy complete pri¬
strange picture of an Administra¬
country's
Sutro
luxury
ture is the installation of custom¬
.
not
in
opened
head advises those taking
the "welfare state" and
to spending instead of retrenchment to "impress upon our
Senators and Congressmen
[need] to have economy in
government... [and] anti-inflation action."
.
word
last
instruc¬
this
Avenue
Sutro
of
they
when
625
the
make
beautiful
office
in
yellows
predominate.
An intriguing and unique fea¬
long pull to the
house
exchange
Their only
to
were
and modern decor.
exception to increased impetus given to
~
hand.
tions
branch
By P. M. SHOEMAKER *
N. Y. State Chamber of Commerce
free
a
President, The Chamber of Commerce of
to Milton J. Beere,
Manager, the office la
drawing many customers from the
According
*
Resident
Saphier Associates, Inc. was1 given
*
Branch Indicative
Encourage Tragedy of Inflation
The firm of Michael
decorators..
Sulro's Madison Ave.
|T
QUAKER
•
GODCHAUX
•
ARBUCKUE'S SUGAR
18
The Commercial and Financial Chronicle
(790}
jA
>
1
'
f
f *
/
'
•
*
*
*
$1,000,000 to $1,500,000 by
*>
1
t
News About Banks
NEW
Company
of
stock
Bank
effective
value
par
The appointment of Stanley A.
Carrington, Joseph C. Cnerry and
Eustace B. Chapman as Assistant
letin,
Vice-Presidents and John E. Isler,
institution is capitalized at $1,300,-
announced
,
Douglas J. Smith and
White,
Feb. 6
announced
was
,
The
Carringtpn has been en¬
in investment work since
Mr.
Cherry has been associated
the
since
1937; and
investment
Assistant
Mr.
department
appointed
was
Secretary in
pany
with
ciated
National
Trust
he
shares,
Sec¬
Smith
the
has
been
Samuel
.
associated
ft
stock
$150,000
by
its
from
ft
com¬
was
promotion of John J. Kinsella and
Marine Trust Co. of Western New
Winslow
from
Assistant
At the
ft
The
Stein
appointment
as
tional
Martin
of
Bank,
from
•
L.
Vice-Presi¬
dent of Manufacturers Trust Com¬
Feb.
1
C.
Stein joined Manufacturers
Trust Company in 1951 as counsel
to the
Personal Loan department.
At present, Mr.
Steip is assigned
Manufacturers
Trust
*
a
Members of the
Club
The
of
of
time
in
Quarter-Century
Savings
Bank
at
the
bank
,
.
new
members, who have
completed 25
of service, were welcomed
the
years
past
into the
George
year
Quarter-Century Club by
C.
Johnson, President of
the bank and
of the
Honorary President
club.
These
include:
Anita
new
members
Mesterharm,
George C. Strack, Thomas J. Keegan, William C. McGroarty, Wil¬
liam T, Isaac, Thomas S. Sites,
MelvinC. Small, Edgar R.
Adrian,
Christiana
Dierkes,
Jehle,
Gerald
Hubert
J.
Edward Allen.
Peffert
J.
and
;
In his brief address of
welcome,
Mr. Johnson paid tribute to
Sey¬
mour B. Wurzler, the oldest em¬
ployee, who has been on the
bank's
payroll for 71
Officers of the
Club
elected
Quarter-Century
George
A.
#
t-
Mooney,
Superin¬
tendent of Banks, has approved
mercial bank
the
New
Department
to be authorized by
York
State
Banking
in
27
John
years,
it
was
stock'
Earl
at
of
Logans-
its
from
$350,000
to
of
to
$500,000
the
by
common
the
By
National
to
30,
auth¬
was
delphia,
Pa.
William; J.
and
John
Assistant
William
H. Barndt,
Joseph' Gaev
V.
Chi¬
of
its
effective
W.' Hulton'
were
Vice-Presidents
com¬
Jan.
Donovan, Emerson A. Thomas
elected
John
F.
.
Voss,
•
Jr.,
were
Assistant. Treasurers
E.
elected
were
Fairfield,
000
Assistant
f>
to
total
dend,
elected
H.
shares,
*
a
Dobbin
has
Vice-President
been
of
The
the
ing the regular
board. He will
par
March
Mr. Dobbin
ier
of
the
1
meeting
jof
1.
Assistant Cash¬
Baltimore
Bank
of
1
Sag¬
-•
<t
*
Mellon
Pittsburgh, Pa.
*
Feb.
A.
a
The President
1,
Zapp.
The
bank
state
bank
as
formerly, under the
title of the Zapp. State Bank.
*
Emmons
National
moted
to
*
W.
*
Collins
Executive
was
its
of
common
capital
Bank
pro¬
Vice-Presi¬
".,
.
of
National
the
First
&
Bank, Duluth,
increased
and
e^ctlv
e
value
par
— -•'
■
stock
-
from
The Security National Bank of
Sioux
City,
Iowa
increased
the
plans
for
capital
at
its
the
annual
two-for-one
a
bank's
outstanding
stock
and
a
split
shares
McAllister,
proposed
will
di-
announced.
Comp,
compared to 60 cents
pajd
on
the
present
being
now
stock.
This
repiesents an increase to 65
d
K10n'^reSn
banking business.
*
...
a
new^ck?'^
.
a
The branch wjll
..
The
-
its
The
subject
'
directors pJan to declare
0„arterlv dividend of 39V,
quarter
on
the
stock
When
poseci
cents
out-
now
standing.
Ster-
establish
*
Chairman "of
-
Industrial
n
- *
acc0mplished,
split
will
affect
the
the
■
pro-
hold-
ings of 2,970 stockholders. It will
change, the par value from $20 to
S1° Per share and will increase
the number of
outstanding shares
from 598.200 to 1.196,400. The last
division,
a
5-for-l split, occurred
in October 1949. •
.
y
Park National Bank of Kuoxville,
Shareholders also approved
Tennessee was increased from $1,«- Pians tor the bank s merger with
000,000 to $2,000,000 by a stock Modesto Bank & Trust Co., Modividend, effective Jan. 22 (200,- desto, Calif, whose stockholders
COO shares, par value $10).
ratified the merger agreement
The common caoital sfock of the
.
*
Security
Greensboro,
1
:
,
„
be
*
*
'
^
;
from
,^aie^0^lders of The Bank of
nu)proposed .change is also
of...'to the approval • of the
its/; trolldr of the Currency.
increased
r
American
Minn.
-
_
meeting immediately after the annual meeting, adopted
^solutions authorizing -the ^plit
aild.calling tor a special meeting
31
Bank
^•>vl?en
*
par
S10).i^% shareholders,,
at-a date which
later
to
Memphis, .Tennessee,
handle all
of
its
^e, Boar^- reported that the
sale
nLf. Jp .5 the northeast corJvi ' /p c^i
1
.
value S10)
oar
.
announce-
of
its
*.
(7,000 ,shaies7
uilding
■,
increased
was
front, $300,000 to $350.-
/7 nnn
Bank
increased
California, San Francisco, Oalif.
^eai'd Edwin E. Adams. President,
' Elliott
.
ft
Roanoke,. Va.,
'
Jan.
,value
pjir
Tenn.
Commercial
-
.
dent
M.
'
,
meeting
$1.-
the
is Edward
operated
Th« Colonial*American National
Bank
by
*
■
issued a charter by the Comp¬
troller; of the Currency, effective
years were spent in
service with the U. S.
Navy. From
1949
to
1952
he
was. Assistant
-
Second National
„'
now
and
was
National
intervening
ft
-9-
'
National
N.
.
The Zapp National Bank of St.
Cloud,' Minn., with a capital of
$200,000 arid $ surplus cf $439,932
1936 to 1940, and 1945 to 1949. The
Bank,
•
stock and
ft
National Bank
$-
the
new
.
was
the
=j»
e
new
(3,000
Colo,
shares
un-, of
from
stock
effecHve
J
Houston,
old.
*
common capital stock ^ot
e,
nTr°«nnSnnalKSt>uk
?25°"
010 to $300,000 bv the fr?m
sale of
inaw.
a predecessor of the Fidel¬
ity-Baltimore National Bank, from
of-
22
changed its title effetcive Feb.
to
Bank,
Cashier
Jan.
„■
his
*
First
at
years
*
Amer-
Denver National Bank, Den-
■
,
increased
First; National
Clarksville,
divi¬
stock
a
value $100).
Second
Feb. 8 follow¬
assume
caoital
stock
was 68
Board
of
83,000.000 to $3,500,000 by a stock
dividend
effective Jan 25 f350
^
.
Chairman of the Board "of Direc¬
on
The
its
Tenn.,
shares,
->r
increase in the quarterly dividend,
Trust Company of Saginaw, Mich,
Fidelity-Baltimore National Bank,
Baltimore, Md., Hooper S. > Miles,
tors, announced
Bank.
increased
by
effective
ft
Tilton
(150,000
N
-v.i.lu
and
Feb. 4
on
He
„
ver,
:
'
s earn-
'
id $1,500,000
new
value $20).'
»*
-
.
elected Tr^st
'»
,
National
-
Tll
The National Bank of Commerce
-*
died
Assistant
were
>'„•
of
effective ;Jan. .31
par
value $25).
$7,309,000.
common
stock;of
fective Feb. 1 (18,000 shares,
ex-
profits and Reserve
2*50.000
«
capital
re.-
passed to Reserve.
Memphis,
Bank
capital stock from $200,COO to $300,000 by a stock dividend and from $300,000 to
$450,000 by the sale of new stock ef-
*
weie
and
value $25).
Illinois
$300,000
e\°
Janf 22
common
Miller
capital stock from $100,-
common
A.
Secretaries.
f
Fairfield
and
Renner. and "Florence
Hoadley
The
J.
n'nn
corn
in
*ca>
Tex.
The
year.
reelected
were
,
*
President
Farmington,
increase
were
Edward
were
„
National
«
*
that' Hubert Early. ' Albert
Hamm. and Gorman J. Roherta,
•
and
an
Directors
officers
was
i.1
,
Theodore
$75,000 of the increase
by a stock dividend
par
*
common
1C0%
a
month; last
except
divided
made
(14,000 shares,
directors'
S2C0.000 of the Company
<1
$100,000 by the sale of new stocK.
became
a
Trust
Officer. Harry G. Bossert, Ann M.
•
value $10).
*
Chairman of the Bank
Kentucky,
Company's capital, surplus,
named
William .'Blanc
,
effective
Merchants
former
an-
Rosenbaum.' who
who asked
ask-e.l
Rosenbaum,'
they not be reelected.
mgs
2o
and
J.
President,
Officers
value $25).
ft
other
formerly
Trust Officers,
$175,000 to $350,000. effective Jan.
22.
„
JJ,? f
•
Hardwick, Vice-Presielected a Director.
who
The
stock
new
par
W.
First
Boland,
,
was authorized to
par
of new stock
(75,000 shares,
a
22
cept
increased
ft \
v,<:
Edward J. Nolan, an oilman and
Louisville,
same
was
All
capital stock from SI.400.000
(70,000 shares,
Muir,
-
Michael Street, Mobile, Alabama,
Jesse
that
value
par
Security' Bank
•
'•.
of Mobile, Alabama was authorized to open a branch at 102 Saint
*
declared
the
All
and
'
sale of
$1,700.00 1;
v-!
stockholders' and
elected
divi¬
stock
a
'"t
Illinois
cago,
mon
(50f000
*
•
value $50).
10c per share over the amount
dent,
by the Comptroller of the
it
by
ft
in
elected
were
the
of
R.
its
paid
!
ft
par
$350,000
The cash dividend is
stock dividend ef¬
(21,000 shares, par
ft
to
stock dividend and a cash dividend of $1.20 per share,
payable cn
Jan. 23 to stock of record Jan. 8.
common
The common capital stock of the
VicePennsyl¬ First National Bank of Evergreen
vania Banking & Trust Co., Phila¬ Park, Illinois, was increased from
Presidents
in-
stock
capital
common
Company,
meetings
Bank
increase
2Q
The Midland National Bank, Midland, Texas was increased from
$1,000,000 to $1,500,000 by the sale
National
Missouri
nounced that The Louisville Trust
ft
„
Pa.,
f-
County
Columbia,
*
John
Cade,
Robert
D.
David R. Houser and
A. .Onsa
cap-:
stock of
common
increased
•
000
28
Boone
of
creased- its
value of $20 each; surplus
$25).*
An
J.
Franklin,
Na¬
Bank of Kankakee, III. from $350,.-
(45,000 shares, par value $20).
a
charter for the State Bank of Long
Beach, New York the first com¬
value
common
ft
The
$825,000; and undivided profits
not less than $360,290.
ft
The
s
to
$800,000, divided into
National
*
"
The
At the
have
will
Currency (5,000 shares,
Conestoga* S100).
:
stock dividend effective Jan.
a
duties
Roy H. Shep¬
herd, President; George Harned,
Vice-President; George W. Stew¬
art, Treasurer, and Frank Boakes,
Secretary.'
<«
its
"Purdue
Cur¬
Lancaster,
Ti,arw
charter
capital stock of the City National
capital
stock from $600,000 to $9C0,0U0 by
years.
are:
the
of
The
of
ft
total 2,325 years, held their eighth
on Feb. „5,
Twelve
increase
to
the
N. Y., whose length
service
Bank
Edward
annual dinner
in
National
<•.
Dime
of Brooklyn,
authorized
rency
Com¬
pany's legal department at
main office, 55 Broad Street.
bank
dend effective Jan.
the Board.
Mr.
title
i t
(7,000 shares,;
orized
Comptroller
busi¬
of
increased
consolidated
Ind.
a
Jan
&
(50,000 shares,
dividend, effective Jan.
by a
fective Jan. 31
Comptroller of the Currency (2,shares, par value $10).
The
000
con¬
consolidation
the
Arkansas
Company of Lafayette^ Bank
$525,000
647,812(2
Flanigan, Chairman of
close
The
the
from
$400 stock divi-
h
value $10).
par
^
*
stock
The
the
New York is announced by
pany,
Horace
to
by
%
common
com¬
were
to
authorized
was
with
under
ft
Pa.,
'
ft
effective date of consolidation the
the par
common cap¬
Philadelphia,
common
$500 000
.
a Bank 01
.
increased its
by
effective
and
$100,000
capital
$17,652,083.33 bi
dend
from
$26,478,
by a stock dividend effective
125
Assistant
an
'
.
sis
ft
Ind.,
40,000 shares of
ft
.
An increase in the
Firsty, Harold E. Mel¬
and
Jean-Louis 'Terry.' as
Assistant Trust Officers.
under
of
ital stock of The Philadelphia Na¬
Daniel
ville
and
port,
ft
■
.
com¬
announced the appointment
pany
of
time the trust
same
Trust
ital stock of
York.
ft
*
The First National Bank of Fort
the
of
nn^Tn^^nnnn
000 to SoG°>000
(10,000
sS
a
.
the
31.
t,.
,
dividend,
by
Lafayette,
of
$150,000,
of
as
Jan.
ap¬
John
Trust Officers to Trust Officers.
of
effected
and
ft
Vice-President
R
vafue^m- 24 (70'°00 Shal'eS' ^
IToMO
Bank
stock of $625,-
tional Bank of Lafayette."
dividend
Hemink
W.
a
National
Company
Lafayette,
_
.
VV
fh
Fi-rtH
™or*b' Florida,
of First Merchants National Bank
of
pointed
its
from
of
%
Daytona Beach, Fla
Muskogee,'
increased
stock
Bank
capital of $1,-
a
^
to
caoital
*
of
Cur-
charter
a
A
shares,
Company
Oklahoma
n
stock
Bank
the
wlnL™ f?0^000'
^
im--*
.
from
capital stock from $50J,$1,000,000 by a stock dividend, effective Jan. 25
(10,000
shares, par value $100).
01
Lloyd
the
announced
ft
Company,
National
of
National
ft
common
stock
solidated
$100,000
stock
a
Trust
Dade
d nt is William M. Pres-
Na~-
"
First
the
Bruns-
$=
Jan. 28 issued
Th/p^inLft
Cur-
West
was
effective Jan. 31 (6,000 shares, par
value $25).
ft
York,
increased
the
City
Smith,
ness
r
-
$5,000,000
,
to
*
■
Comptroller
rency on
000; and The Purdue State Bank,
mon
Bank
The
(300,000 shares,
ft
of
the
Trust
$5).>
«=
Miami, Fla. with
capital stock
$1,000,000 by a
•*
sale
*
The
a
31
*
effective Feb. 1
nar
value
$10nV
shares, pai
value $100).,
stock dividend
a
Merchants
Trust
was
ft
ft
Y.
City Bank Farmers Trust Com¬
G.
First
and
National
the
by
Jan.
shnres
$4,-
*
First .National Bank of
wick, effective Feb. 1.
City, Okla. to increase
to
par value
>-
_
(684,600
Y.,
from
25
ft
ft
N.
by
of
dividend
its
value $20).
par
Ind., with
mon"'capital
to
$6,000,000 by
ft
First
Owego, N.
in
.company
partment.
New
31
ft
$5,000,000
Jan.
from
stock
stock and
value $7.50).
ft
The
to
increased
c
and
common
$750,000
National Bank
Ohio
capital
effective
.
•associated with the investment de¬
pany,
to
Bank
of
as
ft
Huntington
new
Albany,
value.
par
1928 and since that time has been
'
of
ft
Columbus,
000,000
sisting of 8,000 shares of the par
value of $25 each, to $400,000, con¬
sisting of 16,000 shares of the same
departments of
since 1937.
'
White, a Dartmouth
C.
graduate,/, joined, the
1
t
Bankers
its
common
given approval
to
increase
its
capital stock from $200,000, con¬
service
the company
Jan.
Amsterdam,
pany,
-
.
Oklahoma
Citizens
18.
<500,000 shares,
.
value $100).
authorized
Bank
of
$300,000
Comptroller
Farmers
stock divi¬
a
Company,
stock
Bank
effective
par
stock dividend, effective Jan. 22
a
(12,000
increased
was
to
*
The
rency
The
Montgomery County Trust Com¬
Mr. Isler joined the company in
1929, and has been associated with
the income tax department since
that time.
*
with
par
de¬
retary.
Mr.
effective
asso¬
of
ft
tional
of
increased from $4,564,-
$5,134,500 by
Savings
Jan.
be
stock
Commercial
Company
was
to
dend
appointed Assistant
was
Y.
com¬
partment since that time. In 1951
capital
ft
ft
-o'
,
dividend
Bucyrus,
and
will
$200,000
stock
Thursday, February 14, 1957
.
The National Bank of Brunswick, Ga. changed its title to the
capital
Kan.
from
Ohio, has changed its title to The
.
Chairman
>
common
and
000
investment
the
{
The
Ni
an
1954.
Chapman joined the
in 1936 and has been
and
of
The
with
board
respectively,
.
shares,
$1,-
stock
a>
ft
National
(3,000 shares,
ft
evenly
.
stock
new
(875,000
ft
common
First
Manhattan,
The Farmers and Citizens Bank
Karelsen" and Frank W.
E.
Breitbach..
1936.
1.
first
Frank
.
gaged
being
amount
President,
-
Mr.
„
the
1
The
$10).
According
paid-in surplus.
on
by Benjamin Strong, Pres¬
ident.
Feb.. 8.
on
department's Weekly Bul¬
published each Friday, the
divided between capital stock and
States Trust Company
York
the
000,
Samuel C.
Assistant Secretaries of
as
the United
New
to
Feb.
ft
to
by
value $100).
par
The
Ohio
$7,000,000
$8,750,000 by the sale of
$1,200,000
of
and
Dayton,
from
shares,
'
ft
National
increased
was
"
-
capital
common
Trust
-
$10).
ft
Winters
The
Bankers
and
OFFICERS, ETC.
CAPITALIZATIONS
from
dividend effective Jan. 31
value
par
The
REVISED
stock
shares,
CONSOLIDATIONS
•
capital
common
000,000 Xo
ft
NEW BRANCHES
stock
a
dividend effective Jan. 30 (150,000
.
.
creased
from
its
■
National
North
common
$2,250,000
to
>
B
a n
k
Carolina
■
of
in-
capital sto k
The
Bank
three
&
business
offices
Trust
on
Feb.
Co.
4
of
Modesto
opened
as
for
offices.ol
The Bank of California, San Franby -cisco, Calif. >The merger became
.
$2,500,000
last -week
Volume 185
effective
Number 5612
the
at
close
.
.
(791)
business
of
Feb. 1.
'
W. W.
U
The Commercial and Financial Chronicle
.
Giddings, formerly Presi¬
Our
dent of Modesto Bank & Trust Co.
Reporter
Governments
on
California
of
of the Modesto
Edwin
The
E.
desto
located
are
third
the
in
in
way,
Mo¬
nearby
offices
to
13,
have
bank
the
The
been
offices.
Harry
*
•-
the
California
of
.
Los Angeles,
Bank,
California, marked the completion
of
Feb.
on
•
full half century
a
in banking
1.
Mr. Hudson's record of 50 years
;
continuous
of
Unparalleled
terms
President
as
Monica
has
He
staff.
Bank
than
California
the
more
the
members of
2,900
service is
banking
among
Clearing
five
served
the
of
Santa
provide
To
The
of
directors have
new
National
First
a
been
Trust
and
Guilford
H.
announced by
Whitney, Chairman
been
Those elected include: Milton F.
Heller, Dr. Roger R. Revelle and
Orien W. Todd, Jr.
E.
in
important buyers of this
the
of
died
Feb.
on
retired
Board
America,
Calif,
Jose,
new
The
is
expanding and
this has been responsible
which is evident in these
Enlarged Buying in Long Governments
Although the most distant Government bonds are still a long
erans
11.
bringing
shift
the
that
from
of
Blauer
Mr.
was
San
has been invested in the
His
age
ing
Committee
Executive
the
member
a
preference for this security.
a
Director of the
1}
if.
in British
Cut
a
of America.
Bank
*
of
and
.National
of
Bank
its
increased
in
Alaska
Territory
of
Alaska,
capital
common
stock from $400,000 to $500,000 by
a
stock dividend effective Jan. 29
(10,000 shares, par value $50).
if
if
The
.
to
of
open
Street
the
at
Pomeroy, Garfield County^ Wash*
ington.
.
_
is
is
9
Edward
Byron
San
a
Jose, Calif,
long illness. He
He
-
had
Ford, died at
Feb. 12 after
was 62 years old.
on
President
been
the
of
Philippine Trust Company, Manila
and
Executive
an
as
far
it
seems
as
of
Canadian
Toronto,
the
Bank
of
Canada
in
As far
at
the rate of
each
five
Each
15.
in
for
one
750,000
share.
a
will be
17,
share for
new
of
owned
Feb.
record
share
new
be paid
may
ten
equal instalments on
month, beginning
May 17 and ending Feb. 17.
is
The
is
Canadian
of
Bank
on
second
a
London, England. The
is
48
at
of
Feb.
Com¬
11
branch
Berkeley Square.
It will
provide complete banking service,
thus supplementing the facilities
as
original branch, which remains at
St.
Fitzpatrick Inv. Opens
have
and
formed
Texas —Louis
E.
S.
G.
Fitzpatrick
Fitzpatrick
Invest¬
ment Co. with offices at 107 Fran¬
ces
ties
Drive, to engage in
business.
.
Nearing End?
the United States is concerned, there appears to be
.
Money Demand for Tax Purposes
..
a
securi¬
Adler
served
has
Post,
&
Co.,
to
be
the
judgment of
large
as
they
as
market specialists
money
many
to take care of these
need for funds
unfavorable development as far as
that the
payments will not be nearly
in the Spring of 1956.
were
This should not be an
Government securities are con¬
cerned, although this demand for money might have a temporary
of Treasury obligations.
effect upon the buyers
However, if money conditions are tending in the
ease, as
direction of
they appear to be, any decline in quotations of Treasury
obligations should be
a
Associated
was
liam
F.
with
Stone,
F.
James
been
Nelson,
him
Edwin
Kennedy,
are
Notice
STREET
t.
Certificates jor
Prefer red Stock ($7), $6 Preferred Stock,
Second Preferred
Stock, Series A ($7), and Common Stock (old) of
American
&
Power Company Inc.:
Foreign
February 29, 1952 the Plan of Reorganization (Plan) of
American & Foreign Power Company Inc. (Foreign Power), pur¬
suant to Section
11(e) of the Public Utility Holding Company
On
Act of 1935,
became effective.
the Plan, all rights of all holders of the Common
Stock (old) and of the Preferred Stock ($7), $6 Preferred Stor k
and
to
Second Preferred Stock,
Series A
($7), including the fight
all accumulated and unpaid dividends on such Preferred Stocks,
have been revoked, abrogated and cancelled except such holders'
to
receive, subject to the terms of the Plan and within the
provided, the new securities of Foreign Power
allotted to them hy the Plan and such other rights of such holders
as are specified in the Plan.
Holders of certificates for such Preferred Stor ks and for such
rights
to
time limit therein
Stock
(old) who surrender same prior to the expiration
from February 29, 1952, to the Exchange Agent:
appointed under the Plan, will receive in exchange the new securi¬
ties of Foreign Power and the cash (if any) to which they are
Common
of six
(6)
years
that the Plan provides that no stock¬
Power who shall fail to claim the securities or
which he is entitled pursuant to the terms of the Plan
Notice is hereby given
holder of Foreign
the cash
to
(6) years following February 29,
of said securities Or the
other cash to which such stockholder may
prior to the expiration ef six
1952 shall he entitled to receive any part
proceeds thereof
have been
or any
Lichtenfeld
will be formed
fices
25
at
March
Broad
York
City.
1
&
Co.
with
of¬
New
Street,
Partners
of
the
new
ELIZABETH,
N. J.
Co.
entitled under the Plan.
Copies of the form of Fetter of Transmittal which must accom¬
pany certificates representing stocks when surrendered and other
material relating to the Plan may he obtained from Bankers Trust
Company, Exchange Accnt, Corporate Trust Department, 46 Wall
Street, New York 15, New York, or from the Company.
—
the
Theodore
Levy & Co., members of the New
York
Stock
formed
Exchange,
effective
279
be
Feb. 21 with of¬
North
Broad
Street,
firm, which will hold membership
fices
in the New York
Stock Exchange,
Elizabeth, and 120 Broadway, New
will
A.
York City.
Jacob
be
Lichtenfeld,
member of the Exchange;
McMahon,
Julius
S.
A.
Rosen,
Evelyn
Benjamin
Lichtenfeld,
general
Johnson,
Morris Meyer,
A.
Denis J.
Leyton,
and
Alvin
partners;
Sol
Meyer
Levy,
at
will
Emanual
ners,
Partners are Theodore
Exchange
Stanton,
member,
general
and
part¬
and Charles Flom and Irving
limited
partners.
Mr.
and
Coleman,
and
Levy has been active as an indi¬
limited partners.
vidual floor broker.
13c
share in cash plus
new
per
Common Stock,
share
011
one
on
share for each 100 shares of
December 5, 1952.
the 10th of March, June, September and
December, 1933.
15e per share on
the 10th of March, June, September and
December, 1951,
plus
a
year-end dividend of 13f per
share
paid December 10, 1934.
15r per share on the 10th of March and June and on the
9ih of September and December, 1955, plus a year-end
dividend of 15f per share paid December 9, 1955.
20c
per
the
share
10th
of
Dated: New York,
Sco¬
Wil¬
William
NEW YORK
All Holders oj Unsurrendered Stock
to
10c per
McMahon.
;
F.
Murdoch and Charles S. Weeks.
the
Form T. Levy
a
as
Potter,
A.
Upon exchange, holders are entitled to receive dividends upon
new
Common Stock heretofore paid as follows:
buying opportunity.
McMahon, Lichtenfeld
Ap¬
Inc.
entitled under the Plan.
for
to meet the March 15 income tax payments, but it appears
money
for travelers offered at the bank's
Fitzpatrick
S. Boom
ingly, if the boom is petering out here, and that would be a very
healthy condition, then it will not be long before the pressure will
be coming off the money market."
% 7
*
*'
in
branch
LONGVIEW,
economic advisers that it is
the
new
2 Lombard
many
not-too-distant past. The supply of
goods in many instances, has caught up with the demand and this
has tended to take some of the steam opt of the boom., Accord¬
*
announced
opening
of
had been predicted in the
the 17th of each
merce
the opinion
of
offer
to
$30
Rights, expiring May
at
be
conflicting pronouncements as to what the future trend of busi¬
ness will be.
However, there are some rather definite indications
that economic conditions here are not as vigorous at the moment
Commerce,
Canada
shares
common
to
Naturally, there is likely to be a fairly sizable demand
plans
Ochs
President of
merly
TWO RECTOR
picture of the world in general is concerned,
U.
'
is
Bank
stockholders
the inflation
Reduced
is
of
panel member for many years.
NEW YORK 6,
losing its momentum'and, if this turns out to be true, then the
hardening in money rates will be coming to an end.
the Philippines.
is
Conway
uourt
to 5% was
Also, it has been the opinion of many money market ob¬
servers that the boom in England has passed its peak and with this
would come an ease in money conditions in the British Isles. Also,
-as
"
York
The late Brigadier General
peals.
the
New
feature
which
Post,
World
expected inasmuch as it was out of line with other money rates
Com¬
Branch
a
the
ville
Pursuant
Bank
Chief Justice Albert
of
Paralyzed Vet¬
for this phase
Association
No Surprise
ft
National
authorized
by
AMERICAN & FOREIGN POWER COMPANY INC.
Bank Rate,
The decrease in the British Bank rate from 514%
of Seattle, Washington was
merce
a
Charles
were
program
there.
Anchorage,
of
members
It is likewise evident that
at
78.
was
145
helped in its program by leading
fair amount of money into the 314s as well as the 3s.
quite a sizable amount of equity money
new 314% notes, with foreign funds show¬
a
at
Res-
formerly known as the Crossroads
is
stocks
common
will
held
portraits
Eastern
the
Wall
issues. It is reported that the 314% due 6/15/78/83, are being
bought by pension funds, small insurance companies and out-oftown commercial banks that have large amounts of savings depos¬
indicated
luncheon
active
years.
ury
is
Com¬
Better
Silver, President of the Board
of
Education; Rev; Laurence J:
McGinley, President of Fordham
University;
Ed
Sullivan;
Drew
Pearson; Hinson Stiles; Herbert
Bayard Swope; and 22 judges led
of the contest.
larging interest in the market for certain of the longer-term Treas¬
it
H.
Adolph
Post's
eight
with
from being on a competitive basis as far as yields are con¬
corporate and tax-exempt obligations, there is an en¬
Also
the
The
hospitals has been
the
than
securities.
way
Contribute to
for more Forms Melvin Scoville Asso.
Commander
SEATTLE, Wash. — Melvin J.
Murphy announced that in addi¬ Scoville
has
formed
Melvin J.
tion to the cash prizes for hospi¬
Scoville and Associates with of¬
talized veterans, this year's con¬
fices in the White-Henry-Stuart
test will be expanded to provide
a
prize for paraplegic veterans. Building to engage in a securities
Arrangements have been
made business.
Mr. Scoville was for¬
of
there is still a fairly sizable professional interest
longer-end of the Government list but, in spite of this, the
demand
310,
W.
Essay Awards Competition
at the
at
Judges of the 1957 contest. Among
No.
F.
taurant,
does
I
proposed
According to Heyman Rothbart,
of the Essay Contest,
serve again as
by Vincent Trotta, who
year
considering,
subjects
Chairman
The Post will pre¬
DiFalco a portrait
1957.
Judge
selected
was
after
munity Living."
prize winners.
deposit instructions have
obligation.
small way for the improved tone
no
its.
Blauer,
the
of
of
a
*
a
Bank
The 39-month note appears to
few investors in Government securities,
cerned with
of the Board.
Chairman
each
To be sure,
was
William
to
of himself
with reports that savings banks and some
fornia at the annual shareholders'
it
26,
sent
February and March maturities.
a
Can
Street, New York City, on
Feb.
title
Post
veterans
by
Whyte's
Fulton
the
of Wall Street
Murphy ill
O'B.
has
the 1956 Panel will
be
c.
and
by
Kingsbridge V. A.'
Hospital.
Last year's title, which
was
similarly chosen, was "How
-
Inc.,
.,„
Post
3y2% note that the Treasury used as part of the refunding for the
have attraction for not
a n
panel
Com mander
V.
:
market continues to reflect opinions that the very
restrictive phase of the money tightening policies has been passed
for the time being at least. This is being reflected in an improved
demand for nearly all Government securities, even though certain
of the intermediate-term issues are now competing with the new
Savings Bank of San Diego, Cali¬
meeting,
still
cqrporates
sure,
numerous
C0
r
The money
Board of Directors
the
to
be
it
Murphy, III,
Pearson,
Murphy &
that
and tax-exempt issues
better yield than comparable Government bonds.
investment
Three
elected
indicates
Easing of Restrictive Credit Policy Indicated
in the
#
$
market
liquid Treasury issues
more
Associa¬
House
tion.
#
bond
Government
continuing to move into strong hands, in spite of
now and then. The demand for
is as sizable as ever, with the
longer-term bonds gaining in favor with those that have funds for
the
Offiee
Monica
Santa
the
of
are
This
by
was
the
Essay Contest Judge
an
title of this year's essay is
"Citizenship—What It Means
Me."
to
O'Brien
Vice-Presi¬
Hudson,
E.
of
dent
action
as
The
to be
Charles
savings
of
-
investment.
*
redemption
the
organize
Veterans,
nounced
profit-taking which is in evidence
during the past 30 months
through mergers and the estab¬
new
and
cash-ins
refunding
•
securities
added
lishment of
the
bonds.
in
offices of
13
of
care
serving 11
California, Ore¬
and Washington. Eight of the
gon
the
provide funds to replace the money which will be used to take
to
total number of The Bank of Cali¬
communities
of honor at a lunch¬
given in connection with
Annual
Essay
Contest
for
Hospitalized
to be
ably larger than had been expected in most quarters of the money
market. It seems as though there will have to be a continuation of
the larger weekly offerings of Treasury bills for awhile in order
Riverbank, California, brings the
fornia
refunding operation of the Treasury is now out of the
although the cash payout by the Government was consider¬
on
each year for the past six contests.
the guest
eon
President of
California, stated
which
and
be
The
addition of these offices,
that the
of
By JOHN T. CHIPPENDALE, JR.
Manager
operation.
of
to
served
served
Surrogate Samuel DiFalco will
Adams,
Bank
two
and
the
community who
its
panel
of
judges. Judge DiFalco, has helped
have
Essay Contest
has become Vice-President of The
Bank
figures ,in
Wall St. Post VFW
•
1$
on the 9th of March, 11th of June, and on
September and December, 1956.
New York, February 11, 1957
AMERICAN & FOREIGN POWER COMPANY INC.
By Henry P>. Sargent, Presidentv/v
SO
(792)
The Commercial and Financial
Chronicle
Cnritinnvrl
fmm
"
ft
rut no
» capital to Europe, Africa and Asia
*
•
diverted
Foreign Trade Outlook for 1957
the
other European nations. The
Deutschemark will be one of the
stable
most
Continent.
currencies
In
sion
of
of
lumber
the
America
the
on
declining. Tremendous
are
is
expan-
industry
depriving
the
in
the
Western
the
end
sales
Hemisphere. A substantial number of European businessmen already are seeking sanctuary for
up
their
tion
in the Latin Repub-
money
iics
Swedes
to
and
Canada.
vestors
will
billion
of
lay out
traditional
the
this
American
year
practically made
drop registered in
50%
The
Chilean
is
exchange
improving.
strengthen
as
$2.2
pands
and
inflationary
rein-
abate.
New economic reforms
and
output
copper
The
Suez
oil
Bonn
may
will
stoppage
a
action
re-
commerce,
production.
America.
is
But
no
anticipated.
down
will
crisis
severe
Industrial
slow-
reduction
in
agricultural
will help improve
ports
of
ance
payments.
U.
her
S.
the
dollar
bal-
of the
markets
s
backs.
Asian
Inflation
Italian
lira.
porters
w
11
economic
will
set-
weaken
Mm-
f
political
have
not
gress
to
difficulties
damaged
will
sures
in
gold
and
will halt
°f
inflationary
pres-
Consumer
be cut
trade
reserves
purcause
particularly
oyer
the untrend
will
diminish,
J
The
Import controls in Norway will
be
relaxed
again.
Gold
reserves
and
are
ex-
climbing,
while productive
capacity will be
in 1956,
are
demand'
with
the
20 %
crisis
consumer
InS-But Lisbon's
goods
are
to
infinitesimal
needs.
other
compared
will prevail
Austerity
again
once
licenses
as
automotive
essentials
this
increasing deals
in
are
determined to grab
market.
American
growing
exporters at last
ress
this
in
for
ma-
parts
wiR
be
and
limited
further.
r"
J
Tt
.H
»
United Kingdom
are
making prog-
sometimes
neglected
+
1°
y
-
s industrial out-
?umP,(:d. 25%.
is anticipated
gold and exscarcely have
S:
!
ehan»
been dented.
OimtoH
been
It
ways
pleased
Rcs
that
is
will
5ound
financial
Latin
Repub_
stand at the United Nations.
Germans
settle
down
dollar
all
as
tions
of
resorting
later.
wheat
tp,.
tei
.
the
old
system
contribute
and stiengt ten
the
payments
Loans
P°«o.
to
stability. Official
likely sooner or
is
y
+
c
.
.
VP<?rCi
nrn<jnprni1t;
the^ most piosperous
,
^
.
..
,-n
hor
years in hei
whiu
Wffhw/iv
to de.velop power facilities are a y
?•
/
Wm]ri
R-mi
certainty once the negotiations
®
with American and Foreign Power loans are a spur to the economy
Co. are settled. Foreign
exchange The first real oil find in Central
earnings will rise by at least $40 America, which was made in Costa
v
million
as
result of the Suez crisis.
England also will-expand.
exporters
wM7eeTheWcoldULiT donar
p^^'^ oonI ?nuf qX
""Urfties
^h-held U. S. securities will be
of
Brit
wih
lonH
R
and
up
nhmif
j
<R1
America will
hiiiinn
in
tomnornilv
f
recent
DOUnd
nrotpotoH
hv
rpsult-
nostnonemenl
mvments
Althnueh
nf
the
will weaken, there is
no
Except for
13
y'
Df Asia
/ncrelse
the1
tj
c
lion
that
s0
will
kw
of the
likclv
are
i
because of the distorted
,
..
help
stabilize
these
runaway
anH
TnH
moTfthSo-Sn fa-
—
nual allotment. Consumer demand
^xpoS compefe
f01 ^rowb18 soft goods, electrical,
currency,
uncertainties
hardware and machinery
American exports will
are
whipped, Bolivia will absorb much
more foreign capital,'-especially in
let
miHct
thanks to hpiw
castor
o
to
k
?°m~
IT
L^ i!',8?
expenditure^
nfl
and the sham
rke
-a"
in
renlarp
sources
1956
last
Frost
damage
tradirtonM
But
vear
tn
farm
leaH
nr
H
nninni
will
.
n
mnJt
mark
and
ever.
visible and caution is
recommended, despite the present
sales
prosperity.
and
first
are
4
fn
z,
^
U.
f
terfere
n„
does
with
outlook
Peru
a
t
e
bv
the
for
not
Sweden
In
Brazil
the
trade
.
and
eco-
.
nlan
brighter
Brlzil
mil-
Key
are
expanding steadily while exchange holdings have increased
substantially. U. S. fruit compa-
to
nC>ik
in-y
cotton
Mexico
py _olfering additional
^
coffee is
^ 44^e' co.rnpared
a year earlier.
In-
kets for
An
esDeciallv
Latin'America
America,
Latin
steel
sales-to
sales
to
grows
U
U.
S
S.
onlv
alstf
also
:W
competition
market
this
desirable
dictates h
pr0motion.
African Gains
Africa
stantiaI
co
t
will
Rs
£>balt
also
gains
register
this
of
<:iih-
Asia>s
at
year
reso,jrf.e«?
copper
uranium
a"d
manganere
other'minerals'will
be in greater
demand
as
than
ever
the
U
S
Government steps up its stockpiling program. Again the Belgian
Congo will remain
Dromisinff
+
one
in
areas
i*
of the most
the
world
a
j
for
,
expanding trade, Demand for consumer g0ods will increase another
20% in 1957.
U. S. businessmen
CoUafreserve's wil'l'be
^"ed
m/addH^1" 200
» °f foreign investment this
will
ores
bring this African
territory into focus during .1957.
u.
S.
steel
companies
plan
huge
manganese.
envisions
million, expenditure.
South
wiu
of
African
a
France
reach
the
use
business
heights
new
activity
as
result
of
bunkering facilities
required for the long shipping
haul around Cape of Good Hope.
Both
expanding consumer markets
and
substantial
American investors.
profits
lurd
Import liber-
alization will proceed on schedule,
sure
,
you
the
harvest
continuing
will
boom
The
en-
in
Middle
,
least-25%
East
of its
will
lose
annual
at
earnings
-°f ^pital to ,BT3zil from Mexic0- Exports and imports will
1957, or roughly $250 million,
kTk i3' Eutrc?pe and J3pan+^11 set new records- Mexican pur- ^ the Suez Canal is blocked for
a
largest
of Canada.
in
the world outside
Financial experts say
chases
of
industrial
will be steooed
ud
equipment
Eurooean and
are
,
P
in the U. S. not headway in 1957. U.
ln^J*easnd
but are rising once again
because
the flowexports
of
S.
frnm
hppai
private
^
Middle East Sales Down
in the future.
excellent
tn
products
oil as well as
s- supplies. Importg from America wiR expanc1
-
will surpass even the incredible will be accelerated. Imports will
$300 million trade surplus of 1956. deteriorate further to conserve
Extra heavy demaod for Brazilian exchange while more development
mangaliese, iron ore, essential oils, loans to Ecuador are likely.
on
*in
in
are
another 10%. Payments on drafts
will be stepped up but intense
Rio de Janeiro foreseen. But collection payments
share of all markets lor
than
a'dHitirmai
offering
n
ntg
Although
Ecuadorean
exports is investing $800 million annually
jumped about 70%; in 1956, the while Portugal has a
six-year pro7
financial situation remains grave, gram involving substantial
spendLittle immediate improvement. is ing for industrialization.
nas
a
sh,
Qre
rising rapidiy. Construction boont
will be sustained.
Europe will
also'depend On more Venezuelan
$200
Outlook for Brazil
'
h^s" upset
unset Tn
the Cub™^
Sair exoX^inm^rnve
has arrived." -But S. S prtvX capital InvStmTnt
exports will improve. BraZil'S
fbe gioomy side
Brazil's in
chemical
and
manufacturing
pointing'and°wm0 be 1Simoed^-and other minerals °r€ man8aneSe Sh°rt oil suPPlies' inflation and industries will expand. PEMEX
mSe by the oil shortaS M
I
need for ex^ange devaluation, will enjoy its best year. But the
demand for S wI rt i ^h" dnOats
TT W'IL haYe ™ore -"one. of which will make much mining industry may suffer from
priees
P
Iron
in
a
a
HoHamf*^more
S.
?nrr,if,cL
4-
tn
ig56
more
of capital
oil concessions
boost - optimism. Moie than two outlays to develop
s
in 1957.
s- en-is
u
oU b
ngs are I
now in op- q
American firm
eration.
t
T'u
riabnf^!rnHn /
wlB lnvest $200 million
to Brazil's bright future has been
South Africa will buy at least 10%
"% increase in exports and a nies will pay higher taxes and more from the U. S in 1957 but
fW simil^r eduction in imports, make larger investments. Guate- stepped-up promotion in this
" Pe,S als0 Moreover, the world is consuming mala is destined to become one of growing market will be
required,
^ t"3 a" more coffee than ever. Brazil's the best Central American mar'
i
i
tw
unable
whieh
expand. Nevertheless
signs of economic
doubles
I
he
,S tTonai
io
continue
the
AiZ
raw
spoiled
t
Production of
01!nwl11 m+cr(f9ansne andU- S- firms
other
Ne^ ol1,. fields a^e
£emg discovered continuously to
American shipPers can look for steadily growing
t3n
mean an additional $75
UgUay lion in exchange earnings.
f
h
mawfals wSfr±'m"
iribte for^
^ trade LS "" Zealand
ported
traHitirmoi
Arf?pntina
wnv^f
wm
year is in prospect.
jn French Equatorial" Africa a
great reservoir of. manganese and
a
rhbber, ric.e, nuts and coffee as
The
outlook
in
Guatemala
is
a result of Suez Canal blocking promising.
Exports and imports
nfwl
hpan?
is im-:
enjoy
.
Spain and Sweden
Snairi is in thp
The situation in Uruguay
proving slowly.
This
Republic?
now has a favorable trade balance?
Gold and exchange reserves will
hold steady although wool sale$
will be up because of Suez blockin^- Triangular deals will continue while more loans from U- Sare certain.
.' In .Venezuela another record
markets,
^ arp F.lse-
mining ventures.
2
In,Ln
Chances
evT
are
I that
.in
imnort
Sn^Si^o^T^wm
'
JJ
p'Lf,e"
®
li„L fn
!
Ma^vnn
e."
Malayan and Indonesian.
increase
acain
win murage import Quotas
quowb dgdin.
exchange
outlook for 1957 is better
than any time in the
postwar era.
a
will
,
dollar
nomic
R
olant
plant
,
3S
Commod
'
hf^
,
from?
.
niiiien
ity conditions
..
tight
^fwuTbec^'aIStobidte
m
fmm-the
tn
,
although competition
Europe will be less keen,
situation will ease. That country's-Cuban producers cannot keep up
earnings from tin alone will inEuropean demand. In concrease by $50 million at expense
^ i3 year 3S°-' rel?Lvely should make personal visits to the
of Far East nations as result of Ji ^
TY3r\. ^gar 1S going
Congo to cultivate this frequently
S400
Durcha^es
rke
exnense
eLhings
muc^al
as
though U. S.
..
_
Bohva's
Once
make ekten-
Latin Republics in 1957
to
'
America
Exchange
C0Unt °n another 15% jump in
U"fettled conditimis in the
sa^s, while flow of private capi- world, are sending Cuban sugar
tal to ArSentina from U- S- and Pf^es upward. They will remain
Europe will ^lso rise.
at peak levels even
ctor
the strom? "short" nosition
•
be
ex-
I)
(, f
s
Demand
lor buear
can
con¬
will
eventually become a heavy importer of oil. Peru's credit rating
Rica, stimulates much enthusiasm.
'1short<ages
ariid°7mnIort
of transport and power
Shortages, ana
import l>abilita.tion
industries.
U.
S.
shipping
output must be stepped up
siderably or the country
^
paid
VPart;
improve
Argentina s balance of
Trade deficits will continue
to be counterbalanced by new for-
control
Argen ine
mic aid fiom
P
to
the
to
seven
o
wd* v.3*
ex-
should
world markets will ab- but thebacklogcannot be
expH0^
ing.
Government, Will have bet- addjtio"
S40°
nf
Ln<r«
received from new
of
exchange nni.nin„0
earnings
~
of
peso
will
currency
devaluation
$300
arrears
exchange regulato
certificates
more
efforts
the
American
around
slowly
a
encourag-
*ent
consid-
Imports
reduce
to
The
Revised
~
contraction
to
the
its Middle Eastern
supp0rted
sharply
made
backlog
stimulate
more
the
be
million
1957
porters and $60 million
assistance from Washington, which
is
drop
will
for
are
eign
investments,
especially
in
mining and oil.
But petroleum
Austerity will be the watchword
European
America
considerably
Chile
in Colombia during
will
Credit Rating
s
Peru's prospects
expanding market
wil1 remain one of the highest in
Latin America and the sol will
strengthen further. U. S. exports
Republics will not be increased to any ex-
'tightened"'^hile°an
,
Annthm-
other
Latin
Peru
are
o£ ,raw ,'??aterials aid of Imports from U. S will gain anwiu.ne tigntenea, wnne an ImP°r?s
capRai goods will gain substan- other
5%
although trade with
'ntens'v« .export drive will be tially. Emphasis will be on re?
.
Latin
ris-
Latin
Y'
be
year.
7omenei nrtheW^T
the West. f CaUSl?f
Communist
countries
Turkey
to
will
Portugal's imports of raw mate-Latin America will
rials, foodstuffs, machinery, vehisive gains in 1957 at
cles. and
concern
in
help
aid
ments with Mexican firms.
ex-
,
American
will
Gold
pressures
erably
will
-
Gasoline
many
sorb a largei v
me
Products. More econ
compared
last
rise
in
Despite
U.T»? ,f'«lan" wiU ba cut isubstanin 1957,
gain about 10%
will
gain
they
was
countries
change.
to
Canada.
in'
to get
Washington's
hike
far
from
a' key
becoming
that
tourists
and
rationing
the
of Switzer-
now
duties
economic
exports1currency
44%
S.
instability
improving slowly. More U. S.
aid will be forthcoming but loans
stepped
.
change
U.
watch
surplus is
goods
rise,
Concern
favorable
decline
the main
are
the. import
will
The
exchange
chases, which
pro-
labor
the import
as
because
1956
Acute
continue.
narrowed.
of
postwar
extent.
any
shortages and
from
chinery,
a
anil Norway
,
In the
Netherlands the economic
and
America
one
is
buying.
t
remains
political
from
enues
Bern's
still
eventually
als0 help shift a
large share of
Europe's expected $1 billion rev-
disastrous.
the
drop in sales as oil and coal purchases will offset most of the cut
in non-essential
*
goods
goods
However, U. S. exexpect only-a slight
.can
world
lands Pre£er?nce
for boy
American
Swiss will
more
areas
on
and
not feel
resulting from
gold and
tension.
position
sumer
neressitaterfbv
necessitated by temnXv
S § are
tempoiaiy Luiopean
will
South
seven
^
More U. S. Economic Aid
-
products.
othei
in
Swiss
and
expanding
in
strongest in the world. The
U. S. exporter cannot be dislodged
as
the leading supplier of con.
private
i/
Italy
Suez
im-
capital investment willbe stimulated by the new Foreign Invest-
wfn
The
Hemisphere
ern
self-sufficient in wheat and
come
result
particularly with Latin
the oil shortage but will suffer
from flight of capital to the West-
be offset
by expanded
agricultural output. Italy will bea
5Q%
will
tard the pace of Italian industrial
Mexico.
courage
dollar earner, vested
earnings in 1957. By far working well. Foreign capital is
profit from Britain's troubles and Moreover, Washington's
farm^sur- fbe bulk of this will go to Latin being encouraged, while taxation
expand exports at the latter's ex- plus dumping
policy and "Buy America.
will be simplified.
U. S. compapense. Imports of raw
materials American" Act are having reperjj
g
companies, now in the nies will lay out nearly $100 milwill be maintained at a high mark
cussions on the U. S. exporter. second
phase
of
an
industrial lion
for
expanding copper and
although there will
be
some
The latter is rapidly losing a foot- revolution
that consists of capital nitrate
production.
Drafts
will
switch to substitutes and to closer
hold in this once easily cultivated
spending for plant and equipment continue to be paid more
sources of supply.
promptly,
U. S. sales to market.
abroad, like to invest in certain U. S. exports are
gaining rapidiy
Germany will remain at recent
cwit»prlnid
anrl
Turkey
Latin American nations because but optimism still should be ternlevels. German exports to Africa,
owiizeruim <uiu
u
y
0f the high return.
In
Brazil,
for
pered somewhat. Italian and GerMiddle East and South America
Switzerland s
recent
memberexamp]e> net profits on capital man competition is on the
will gain substantially.
upGermany ship in the General Agreement
ayerage 35%, with the majority swing... Multilateral
will pick up some of Asia's mar- on Tariffs and Trade will inspire
payments
Qf
American
companies, earning mechanism
kets in these areas.
substantial
cuts
in
duties,
this
consisting of U. S. and
fact,
in
chases from U. S. slightly but enmore
licensee
arrange-
should
record
a
trade drive
exchange balances will top
the $500
million mark in 1957,Higher duties will curtail pur-
situa-
Peso
Thursday, February 14, 1957
.
and
1955.
in--
.
new
have
American
capital
new
of
will
.
be
up
another
20%
exports
and shopld
in
1957.
By
falling metal prices.
as
expected.
That
me»ns U. S. sales to that area will
fall by
an equal amount.
military
situation
East has
will step
up economic
in
stabilized,
Once the
the
Middle
Washington
aid to that
area.
Peso will be
strong but will not be revalued
upward.
Britain
will
launch
a
months
slx
Iran
1
is
the
only
nation
in
the
Middle East where trade will hold
at
present
levels.
Shipments
to
Volume 185
Iran
to
this
to
will
area
be
Materials
"At
the
time,
same
Bank and Insurance Stocks
continued
surge*iri word shipping and" prosperity at home guarantees a
of vessels will im- record inflow of raw materials,
The
in
Iraq's dollar earnings because, construction
of
oil
3J
Prosperity Requires Raw
force Tokyo to seek new soloes
for cotton*.
•
on
(703)
will
imports of Japanese textiles
A sharp reduction!
letter of credit.
Chronicle
The Commercial and Financial
.
.
All other trans-
accepted.
actions
.
draft basis will continue
a
on
be
Number 5612
By ARTHUR B. WALLACE
sabotage will mean, an ex- prove Parkistan's earnings from* They - are needed to keep the.'
from tne* fiber. But this will be more than" wheels of production going forde-
tensive cut in purchases
iX S. and Europe.
American
million
$200
aged
more
year,
of course are due for a sub-
than
a
stability
in
economy*
for the next 20 years.
gradual growthmarks
the Philippine With more money
and
characterize
wdl
Egyptian economy to Eastern Eu**
rope
again in 1957. those of
in the consum- panies?
with
strengthened
through a
®
f
ti
° aO0ds
.
Thic
This
liberal trade policy.
_
dip
sharp
a
nnct Kfirn^n
post-Korean
Ih^
the
p
■
aggravated
in
TT _S*
°
V*
The drop
will be
20%
of
exports to Asia
taken
will drop another 10%.
ports
Eastern market for American
Canada
America
ex-
South
kets
Asia
lost, it
are
British
the
will
be
Australia's distorted
How-
in
critical
more
wool
become
another $1
offset
to
deficit
1957
in
of
A
billion traae
steady
stream
of. European refugee funds,w:hrcli
products and
will find
to lose out,to Eu¬
bound
are
ventures from the States will lie p
of
Sales
1957.
hides, meats, dairy
contribute
also
and Latin American com¬
petition. Shipping shortages and
haven in
a
maintain-
toward
.
and
investors
markets
S.
chases at
will
cap.ure
and
balances
trade
trouble
endangered
rising
by
position.
U.
economic
S.
a
crisis.
selling its holdings
A
the
the
as
on
local
for
cur¬
Kreeger Elected NASD
District Chairman
P.
Jones, Kreeger
Kreeger,
Partner,
& Hewitt, Wash-
Soviet
With
American
new
Satellites
foreign
toward
more
Suez
turn
industrial
with
and
materials.
Communist
Oil
increase.
but
with
Trade
countries
Asian
most important trade pattern established in 1957 after the dis-
China
will
torted
will
rise
caused
revenues
Europe will cut consumption
of Indonesian materials
by at least
commodity
by the Suez blocking,
In
trade
the
American
outlook
the
immediate
there
for
is
potent
one
to be remembered in the
Japan Faees Competition
ahead.
Japan's economic boom will be
maintained
unless
ternational
recession.
Russian
bloc.
and
shortage
hamper
capital goods.
may
trade
with
Middle
East
Japanese
Asia
Southeast
will
show
substantial
added
$2
billion to
their
dollar reserves.
They
will garner another $1 billion in
1957.
A continued high level 01
American economic aid, huge milgold
and
and
Virginia) of the National Association of
Securities Dealers.
Ludwell
Inc.,
Co.,
A.
Strader &
Strader,
Lynchburg,
electe'd" Vice-Chairman,
Va.,
was
.
.
_
ORLANDO
1
t-
Schenck Bros,
r
J
Fla
ormed
and L. V# Schenck, Jr.
E
ance
of
able
and
rise
payments
will
-
But
bal-
be favor-
exchange earnings will
slightly.
The yen will be
strong.
Increasing U. S. curbs
enthusiastic about the outlook for
-t mafkets in 1957 As a large
proportion of the fire companies
utilize
£es
on
.....
,
these
.
ing
in
offices
the
securities business from
at 221 Depot Place under
a
name
of
...
in
surplus goods plus sales to
_
a
.
,
e>t.
,
....
strong position.
,
.
•
in
bear trend ln
wiu be
^,idely
their
equj.
felt
into
played
these companies,
point
of
view. Nor
holders to
avail the equity
wjn
as
about what concerted. If the companies
to mention two leaders of are frozen in in a serious decline
quality). However, they are ^
probably require the us£
big investors in bonds, and the 0f convention values as was done
markets
for
these have
moved in the early 1930's.
their favor.
will
stocks
give
growth
Form Fund Corporation
a
On
MINNEAPOLIS,
Minn.— Fund
Added
to
the
factois
al-
jn
engage
officers
are
a
securities
busihess*
Truman E. Anderson,
S^
that
justify
attention
All were formerly with Anderson-
to Plan*k.-Arna0.
stocks.
the
other
the
hand,
fire-
Form J. P. Howell Co.
for December 1956 were
$96,485,- outness. Omcers are
Provenzano, President;
according to the estimate of
Board of Fire Under-
above the
writers, or nearly 20%
Cavicchia, Secretary-Treasurer.
13 NEW YORK
BANK
of INDIA, LIMITED
El
Paso
Management
-
"
Bond Portfolios & Sources
of Gross Income
S. W. I.
Ceylon,
Burma, Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and Somali-
Com-
land
,
Capital
£4,562,500
Fund
Members New York
Stock Exchange
Members American
Stock Exchange
120 BROADWAY,
f.2,851,562
£3,104,687
description of
banking and exchange business.
Trusteeships and Executorships
Reserve
The
Laird, BisseKI & Meeds
Protectorate.
Authorized Capital
Paid-Up
..
with the firm.
Breakdowns of Government
Branches in India, Pakistan,
pany
Partners
CITY BANKS
Backers to the Government in
Kenya Colony and Uganda
Head Office:
26 Bishopsgate,
London, E. C. 2.
West End
(London) Branch*
13, St. James's Square,
.
-
Bank conducts every
also
Joseph L.
Theodore
Howell, Vice-President; and Elsie
NATIONAL
(Special to The Financial Chronicle)
COLORADO SPRINGS, Colo.—
t
issues
are
faced with
MONTCLAIR, N. J. — J. F.
enough adverse factors to prompt
one to pause before investing in Howell
& Co., Inc., has former?
them right at this juncture. First, i*rith
offires at 460 Bloomfiela
fjre losses continue to rise. Those Avenue to engage in a secunties
Schenck Brothers.
are James E. Rouse,
Robert L. Kirchner, Lawrence V.
count y of $14 billion and the Gotton and William T. Eckhart.
1957 export outlook has to remain Charles L. Fouch is also associated
farm
stocks
COmmon
tfolios
Schenck
are engag-
ings of $2 billion from American
imports
_
,
assure
And
top
000,
about
billion.
of
the National
has been formed with offices
in the Mining Exchange Building,
..
overseas
from.
.......
2%,
casualty
private
unparalleled
like these amounts.
authorities ...
are
far
...
assets; Connecticut General
(District of Columbia, Maryland,
North Carolina, Virginia and West
from the U. S. Add to this a sav-
$2.8
have
markets
ington, D. C., was elected Chair¬
of District Committee No. 11
man
The
reach
thing
many
to
attempt to switch into bonds, for
in,cases whereJ;hey are permitted declining stock' markets will not
to invest in common stocks their readily
absorb large blocks of
commitments- have been modest COmmon stocks, and the attempts
(Travelers
about
4%
of
total at liquidation could well be some-
itary spending abroad, the tourist Form El Paso
Management
boom,
any¬
for
add
present
hands
these
the "free world' entered the
nations
1956T
valuations
not
has kept up, and the invest- investment
ume
factors
natlons of $17-5 bllll0n of lncomc
will
to
^
Joseph P. Kreeger
British, German and Italian
competition.
Exports will total
orous
while
,
,
those, years,
validations
will
mentioned is another, t e presjdent*
Norman
Terwilliger,
life companies low mortality rates
Vice_president;
John R. Goetz,
111
an
era
of wonder drugs aim
Secretaryj and wluiam N. Lunnew
methods in medicine.
This
berg
Treasurer.
Raymond
N.
is in an improving trend and is pl£mk and charles c. Arnao, Jr.
investment
billion
$2,000, share,-■■
ing large blocks of common stocks
^
to report
enormous increases iri
^
ready
gains. In other areas
Japan will have to face more vig-
$2.4
,
was
market
prices in 1954 and 1955
and enabled the companies hold*-*.
levels for the
Certainly bond-investing cornlife stock they appear panies, including the lifes, are in
be good values. Premium vol- ^ favorable position now from an
at
ments.
overlooked
economic shape. Last year foreign
to
*
China and
Steel
rising prices
sales of ships and
be
Prosperity
'
the
cannot
planning
Middle Eastern crisis in excellent
an
will be bolstered by expansion of
and
It
factor
in-
is
there
trade with Communist
that
y
appraising
luture
15%.
structure
oricewise
Corporation has been formed with
siderably short of the spectacular offl-ces at 425 Marquette Avenue to
there
will be fewer disappoin -
merce
Southeast
other
result of the stock
period, but if the growth
factor is recognized as being co -
trade wi-h the Soviet
with Red China. This easing of controls on exports of nonwill force Indonesia to re- strategic goods to the Communist
to Japan for its supplies of world could well be the second
a
.
But
through
traffic
of
Suspension
basis- Rate changes generally reQuire several years'
years' experience:
experience
behind them, and, generally;
speaking, present rates have noi,
been in effect long enough,
b(
Whereas asset valuations feH
the upward pressure of equity
range was 620-402 (unsplit
stock); Kansas City s 2000-1190,
and down to 1090 in 1956.
over
while the competiof U. S. exporters
about 40%.
„,
Life
engendered out of the Mid¬
dle East debacle and uprisings in
Eastern
Europe, will be slanted
will
as
over
much in
pol¬
satellites to reduce their depend-,
tive position
ence on Moscow.
(Poland's e<will be improved by the closing changes with Russia, for example,
of the Canal.
Nevertheless, India amount of 65% of her total). After
will cut its imports from U. S. Ly
this will come increased combe stepped up
about
prices
the
Joseph
granted will not be on a wholesale
'The life stocks did not remain
^ their tops As an example the
y
?kr,
ch s^ld.
?
"lgh of about 120, slumped to just
below 70; Connecticut General s
world s:'
''free
icy,
of raw male-
Trade with Japan
ban
products
Trade
New De.hi
this will cut into foreign exchange
earnings.
the Euro-
to
rise could
ine
Del g ava iao e, p eew
nianv more investors than it
bas*
the domestic market. But
on
way
to
then being available
production
Congress to
sales of agri¬
*
Then the present rates are, in
the light of experience, made-'
the shares, except for what effect
immediately ahead because of
Middle East crisis and cold
Trade will follow aid, as it always
and
will seek to moderate inflation by
rials
;
•
..."
nothing
imsptilprf
unsettled ppnnnmir
economic ronHitions
conditions that
that
gee
to some Communist nations.
rency
and
European private capital to India
prevent
the
cultural
in¬
aid
assistance
of
source
that 1957 will better*
assurance
probable that what increases are;
However, this
this added
added
»
the intrinsic value of
break-up.
ment
Since
*
even
attributed to
the persistant
rumor that a big split was to be
ordered; and, finally it was split
in what was in effect a 25-for-l
™i--i—
tension,
high,' and
no
the 1956 showing by much.
be
Common
Market,
which
someday
will establish
a
free
trading area for a dozen European
rtati0ns.
Meanwhile, despite ihe
war
too
Insurance's spectacular
pcan
lie
many
not interested
" For example, much of Travelers
of peak business earnings,
remove
of American
larger flow
will
s> membership
--
giVe
ran
—i.
big ^
turn-over *
from statutory
profit in 1955 to loss in 1956.. An,
losses continue bad. not only irit
fire lines but in casualty, we have
ered to be the rate of growth.
Although Western Europe looks
will
by
ai
announced
Quality stocks ran far ahead of q,uate; but as rates are not easy.
recommend what could reasonably be consid- to change on short notice it im
be
1957.
Eastern Europe are
White House will
ex¬
However,
to
prepared to spread its aid proto the Iron Curtain satel¬
lites.
Farm surpluses will be tne
prices
deteriorating foreign
creased
the-fever
came
any
were
just
$8,000,000; the two Amer-*>
Fore parent units also rang.
up a
yield so much as
with long-term appreciation. But
European .Trading Market
*
T„
current
basically economic, the U. S. will
main
the
Fairless CoinEisenhower to
°' T' C'
pr0ve
the
marke.s in
new
the revolts in
Second Five-Year Plan may
change
with
and trade will continue to grow andthus k insure
American exporters and importers
find
main
the
the
by
purchased
were
investors who
better grade
problem. Suez crisis will impair
export markeis and raise import
India's
lead
exporters will
Many American
India
be
could
Suez is reopened un¬
once
less imports are cut.
a
will
the country's
problem
However,
t ,e
consistent unfavoraole
huge
gram
Inflation
peak while astute monetary
measures will continue
major
be
can
Inflation in
be
.
combat inflation
to
position of excep¬
tional importance as far as Aus¬
tralian exports are concerned.
and
crisis acto develop
fiscal
and
bare minimum. Japan
a
occupy
costs.
up
.
—
Aetna Insurance
1955.
(consolidated)
majority of cases, yields
ignored entirely, and
the
stocks
at
new
a
expected.
Canberra's austerity will hold pur¬
U.
urgency
.
remain,
American
the
centuates
VV411
although tight
import
restrictions
will
cause
some
curtailment of production.
The greatest promotion campaign
in
Australia's
history to attract
will
But
set
4v,
in
profits
but every
up,
great
were
But internal prosper
$30 million.
ity
on
a
Organization for Trade Co^
operation (O. T. C.), which is designed to administrate the General
Agreement on Tariffs and Trade
(G. A. T. T.). The White Housfc is
—r*
...m
confident that Congress will ap~
over
Middle East
currency.
necessitated by the
Suez situation will cost Australia
Hope
,llutluull
boosts
run
tlcipatedvalues
in the big inflation of ica
in these issues. In
in The
ihf rLarilfn
Canadian Z'lar
dollar ST
U. %
S.
the
longer routes around the Cape of
ouc.
will
Canada
ropean
Good
amples.
mittee
wiu also ask for u
balance
will
position
payments
Tariff
companies
market
mar-
regain them.
to
accdunts of several bad burninga
in the past few weeks.
.
-
com-
K-«G-S#?CrS Pai# ?oss
ever, U. S. sales, up-30% in 195o, promote trade will
?e at a muc£ slowxer Pac0-" lower tariffs to counterbalance redifficult £he
dueed aid over the long term. It
into
Canadian-, oil and
uranium
these
Onc6
-
has-
protectionist
old
tiles in the pasc two years are ex¬
§ince
she
will
capture
of Britains best customers'
some
that-the
Administration
watches, bicycles and woven tex¬
best customer in 1j57
s
will continue to be Canada.
However,.
the oLt-
*SA P°
few steps of
a
character.
Customer
Best
Our
Is
However
nolicv
trade
more tariff hikes are in
■ "
v earnings but copra.'{P®* ^ere
eign
exchange
datnmpnt, whd
wpakpn
it R px- Republican
shipments
will weaken.
U.
S. ex¬
shipping routes. However, Japan
will be the single improved Far
for
mar_
because
earnings
i'n
' liberal
fiber
and
sugar
^e+s will improve Philippine for-
the "decrease in
of the longer
by
,
world
able
will contribute toward
life
the. leading
the stocks of widely known,
were
Reelection of President EisenRower and a Democratic Congress
nrnmisps tn
pnntinnp ppnpra Iv a
Proftlises tp continue generally aj
nf
oi
Stocks
Insurance
,
Past*
The
; Financial assistance to the Far foundation will be laid in 1957 for
East, particularly to the French ^be industrialization of the Philip-*
pnlnnipc
\*nli
r)p>r>linr>
tnic
vpar
colonies, will decline tnis year J Sres "Feso"\7iirbe firm" Favorrpyprwi
reversal
—
|r s pocketbooks* imported goods1 The «growth" ^ea, when it hit -A large proportion of the 1956^
the life stocks, really did a thor- annual reports that are appearing'.
larger Li- a necessity, not a luxury as, in the ough job on them for not only show large statutory losses verswn'
Economic vies'
Japaiv will be?
1957.
trade
and
FnreiP-n Aid tn Far Fast
Foreign
Aid to Far East
War trend
Week
.
Nassers cotton for
have
mortgaged the
expenditures.
deals
This
industrialization
pro- trial and school construction, and
gram will be hampered by a hike
the <$33 billion highway buildmg ; Has not the time come to con- like period in 1955 For the vear>
in freight rates, shipping shortage, program. Gross National Product sider .a shift of funds from the. 1956 they were 11.8% higher, than;
rising costs and inflation.
and personal income are certain fire-casualty insurance stocks to 1955; and we have had newspaper-
Karachi's
stantial decline because of defense
arms
fense, capital expenditures, indus-
higher costs of imports,
offset by
ex-
ports to Israel, which have aver-
undertaken
Telephone:
NEW YORK 5, N*
BArclay 1-3500
*
(L.
A.
Glbbs,
>
Y.
\
1-1248-49
Manager Trading Dcpt.j
.Be/I Teletype—NY
Specialists in Bank Stocks, *
22
(794)
The Commercial and Financial
Chronicle
Continued jrom page 7
strong organization
in
respect
U.S.S.R.
Currency Outlook—1957
The
Israel Pound has survived the re¬
dictator, owing his power to the
military alone, has to reward that
clique for his job, making him the
cent
richest
again
political
events
in
good
shape. It can maintain its present
of her
Among
f
the
the
most
Asiatic
important
lion
currencies,
India's
one,
Rupee, is under substantial pres¬
The new five year
plan is
very
ambitious and New Delhi
sure.
will
have
the
Japanese
Yen
good recovery.
well
and
in
the
ing
the
come
and
year
to
nearer
the
just
them
in
Let
mestic
the
Buenos
but the
One
long
good
whole
some
important
the
crowd,
will
tral
The
be
But
great
long
is
the
are
too
a
it
might
People
with
im¬
stability.
of the woods,
outlook
in
It
is
not
its
time
will
level,
to
is
eliminating
production
ments.
good
lot
a
most
of
of
of;
tons
of
fraud
the
annual
toilet paper.
know
Fantastic economic
130
some
the
.
official
Cruzeiro,
to cope with
not have the
with
a
varieties
nevertheless
of
tries
conditions, but does
courage
to
proceed
real
currency reform.
will have to do so one
It
day. Until
then, the Dollar in
fluctuate within a
75
Brazil
will
range of 65 to
Cruzeiros and Rio will remain
good customer of the U. S.
Chile's
Peso,
freshly stabilized
1956, has been rea¬
since
April,
sonably firm and continues to
cling to its official value.
The
country, ruled by an old dictator
cronies, is potentially rich.
But to increase her
industrial out¬
put is a long range
task, and not
and his
an
easy
rency
But
one.
prospects
Colombia,
bed
and
gime, Is
on
a
under
a
a
case
administration
here, too,
are
good.
cur¬
reasonably
monetary sick
dictatorial re¬
of complete misof
currency.
.The
rule
of
who
shown
of
its
value
illusory
penny,
Zloty,
officially
one
at
Ruble, or 25 U. S.
be bought in free mar¬
only .%
or
flowed
down
the
Volga
at
of
3%
American
an
of
its
former
splendor.
and
Dnieper. The blood bath in Buda¬
pest
took
place
and
cies of Poland and
pieces.
So
too
the
curren¬
Hungary went
went
their for¬
eign trade and the whole system
The
Czechoslovak
Koruna,
ficially labeled at about
can
in
be
it
bought in
14
of¬
cents,
Switzerland
or
Austria with less than 2
cents,
having
was
lost
of
cold
splendid
certificate
complished
the
about
86%
of
what
believed to be worth.
has
been
enough
that
the
no
to
these
of
make
facts
WHAT
monetary
the
on
of
contrary, black
currencies
try
to
frequent them for their
tection
many
ter
all
ments
of
records
that have
in South
lieve
savings.
me,
of
been
America.
is
not
such
of
Marxistic
Moscow
exactly
MAKES
a
the
Let
a
mone¬
has
not
yet used the word of hoodlums for
of
the
in
the
who
value
Ruble, immaterial for for¬
eign traders, might improve again
world's
Russia
will
system
of
Dollar
enough
markets,
imports
basis.
on
And
gold—about
more—not
her
much
will
and
Sterling
a
she
as
$7
but.
tight
control
currency
conduct her
or
free
continue
has
billion
or
happen
to
her
monetary set-up under the
present administration.. Its
major
drawback is located in the
prop¬
aganda
field.
cannot
be
There
used
as
the
a
Ruble
showpiece,
because
everybody abroad would
And, according to an old
French proverb, it's
only ridicule
laugh.
that kills!
If
its
the
Ruble
were
freed
from
draconic
restrictions, and if
people in the Soviet Union would
be given the freedom to
buy and
to
own
foreign
maintain
currencies
accounts
abroad, not much
value
would
be
or
of
Ruble's
left.
Therefore, in spite of
power, which to
and,
deposits
the
all
Soviet
deny would
be
a
great
mistake, the smoothly func¬
tioning currency system within
Russia
a
can
giant
The
only
a
on
only be compared with
clay feet.
famous Ruble
year
ago
Bloc, which
seemed
to
be
a
own
Chessie—and her kittens®
can
pro¬
bet¬
achieve¬
established
And
start* with
efficiency.
On
Corruption in
of these lands also
the
it.
present
believe
exist.
kets are flourishing in all Satellite
countries and many officials there
some
of
a
ac¬
currency mar¬
you
hear
not
mastership
not
no
units,
to
expres¬
any
people
do
to
presents
most
its
dogma. There
object
have
about
of
propaganda efficient
to
eager
11%
economic
a
difficult
official
it for
dry figures,
truth, are
of the collectivistic
Polish
can
These very
sions
historic
a
the currency dealers
abroad
deal in her banknotes. The
of
developments are not only possi¬
ble, but certain. The
government,
still unable or
unwilling to reduce
market
pros¬
exactly
false docu¬
and
for
will
and
facts
tary
Coffee prices are
high. Domestic
industrial production is
increasing
daily. Only half of Brazil's pop¬
shoes
Since then much water has
free
so.
reviewed
glorification
by
Central Bank has a
cushion of Dollar reserves.
wear
known about these
or
Ruble. Officially worth 25
S. cents, it can be
bought out¬
side' the Soviet Union for
about
3 M> cents.
This is not
The
ulation
facts.
was
kets
nickel,
The
Foreign trade, now based
Brazil's multilateral
payments,
reduced
worth
cents,
S.
buy
U.
amazingly
agreements, has majorly improved
hnd
stable
ernments
good.
bn
The
When the first revolt in
Poznan,
Poland, started in June of last
little
nominal
only about 7%
tations.
year,
Forint, without
official rate.
only
U.
one
can
interested
is
but
do
expect
out
but the long range
Brazil
be
Guarani,
certainly
us
yet
ties, but could get Soviet products
at rather high Ruble quo¬
of
you
collectivistic countries. There the
picture is not as rosy as the gov¬
cour¬
Brazil's Cruzeiro has shown rel¬
»
ative
grpw
army,
to
administration
hold
capitalistic
take risks there.
age can
arbitrary low Ruble-pari¬
Hungarian
buyers outside Hungary, presently
a
Berlin
an
But in West
enforced rate.
The
has
has
rate of 45 U. S. cents.
devaluation, has im¬
slightly in free markets.
hard
but
conditions,
worse,
again.
prod¬
value.
Ost-Mark
recent
a
Having
possibil¬
getting
And the
their
capitalistic West.
market
The
devaluation.
risks at present.
after
do¬
has
rose
road
prove
its
the
more
Sucre
remain
that
export gold in
order to buy essential
goods from
free
.
Peru's Sol, one of South Amer¬
ica's best managed
currencies, will
seems
A long and hard
economic
recovery has
are
deliver
official
1
currency,
devalued.
be
definitely closed.
Chances
sys¬
very
range
and
Dollar
Here
proved
lized with U. S. credits and
skill.
The era of socializations
ities.
at
to
Of the Bulgarian Lev's theoret¬
ical parity, only 15% remains in
ling jewel itself, totfay has a free
market value of
16^% of its of¬
dwindling
the
The
The country is
poor,
has excellent long
range
a
a
and
could
there
Paraguay's
continue
started.
ucts
had
ficial rate.
market
its
Satellites, has to
the
spark¬
no
already
of
rate.
Moscow, deprived of many
important deliveries from its Pol¬
ish, Hungarian and East German
were
the colonized territories.
a
Rumanian Leu,
as
Ruble,
has
only 14%
The
free
a
of
avoid
of
and his
Boliviano, South America's
currency,/ has been stabi¬
to
There
of
the
have
high in the country's free markets.
improve her position.
worst
Satellites.
Mos¬
value
of
us
value
during recent
Dollar assets of the Cen¬
Bank
have
been
and
the
country,
recover from Peron
corruption
to
and
will
have
Its needs for indus¬
dictator
decline
„
they
between
and
S«viet
mentioned,
Let
remnants:
months.
Politics, still an
factor, present many
problems,
but
straightened out
yet to
all
difficulties,
picture.
the
trade
cov¬
The
currencies
world.
the
at
Investments in Colombia
Ecuador's
might
improve
can
for
potentially
are
which must
range outlook is good.
crop
and
cow
system
look
in their jobs and their power than
in the quality of their
plans
from
Aires
multilateral
a
payments
to
is
traditionally
again.
Financially freely
transferable, it functions without
restrictions.
plans
formulated
excellent
pects.
cline
continue to have
receivables
and
markets
decades.
have
alphabetical order:
are
Pesos.
repayment, backed by U. S.
trialization
Argentine Peso, after an excel¬
lent recovery, has started to de¬
black markets and there
to free its foreign trade
been
rich country.
will
ering
clearing organization
dictatorial
Satellite
some
lost
Colombia
review
us
6.65
private banks.
the South Amer¬
currencies.
was
Bogota,
rated up
black market
at
These
be
not
tem of
convertibility.
thinking of
most of you are
in
exporters, who
time to get
quite
money.
will
More salient to the
ican
Pesos,
fluctuates
wait
their
dur¬
Yen
The official
Dollar
Pesos in the
now
will
discount of 11% to 12%
black market.
This dis¬
narrow
7.15
a
everything to im¬
probably
the Peso.
the
of
The country owes about $180 mil¬
lion to American
a
will
count
of
a
ago,
latter
listed at 2.50
her currency, which still is
prove
listed at
import
I learned
from former high-placed Satellite
officials, that there has never
been
of
today
the expense of U. S. exporters,
who simply did not get paid, and
to
Tokyo manages it
does
the
Satellites,
propaganda item.
a
days
only bilateral trade agree¬
ments, dictated by the Soviets to
and
to
made
half
its
as
few
a
dealing with the
military
hardware. Such expenses, sheerly
unbelievable, were made mostly
value
Rupee's
has
about
spent
export receipts of $500 mil¬
for
torpedoed
present value.
The
Last
country.
at
has lost substantial
amounts of
her currency
reserves, which de¬
clined to a very low level. Amer¬
ican credits will help,
but not
enough, and India
fight to
maintain
the
Colombia
year,
leveL
of
man
were
and
only
Only
recover, when Arabian oil
flows to Western Europe.
a
exists
that inspired
Western coun¬
many
tries which
Thursday, February 14, 1957
...
that, be¬
an
indi-
Number 5612
Volume 185
cation of spreading
ordered
...
selfishness as
not
do
communistic theory.
by
believe
what
their
bankers or brokers tell,
them* will be able to make the
These signs of currency deca¬
dence and of weakening colonial
decisions that avoid losses^
of Moscow, as welcome as
for contemplation, are
nevertheless
rather
dangerous
that I
events.
value.
This
power
they
are
Currency debasements,
under
communistic or
whether
capitalistic rule, always expro¬
priate people. Expropriations lead
to hidden or open revolts.
Re¬
volts create
in diplomatic lan¬
guage—what is called a political
vacuum.
Moscow's highly intel¬
that
ern
teaches
tragic
the
case
as
well
time.
as
they do.
And for the non-be¬
of
monetary situations, there is
always time to change from the
menaced
units.
is
into
the
non-menaced
The
only thing
knowledge or
some
advice.
I
best
confess
that
as
will try to stem the tide of
disintegration
of their colonial
empire and its currencies.
are
going to watch interest¬
ing events in the monetary world,
which
never
who
follow the trends closely and who
/ LROAD
PALM
Thomas
formed
Palm
stands still.
And only those among you
difficult
to
borders
of
Form J. Thomas Co.
cow
We
necessary
the
the Soviet such information is
outside
the
and Satellite currency problems obtain
may look at the present moment^ Manhattan,
#
it is more than probable that Mos-'
bleak
as
But they
lievers of official embellishments
available
us.
Therefore,
to lose
made
are
Los
advice
best
do not all lose their worth at the
rulers are aware of such
problems. They will not give in
Hungary's
about
give you. Do not forget
If they were not, our mod¬
economic systems could not
same
ligent
as
is
can
currencies
work
—
easily,
pro¬
vincial
Way to conduct
a
securities
Jerry Thomas is Presi¬
dent
Treasurer.
One
GROW?
is
however, inflationary
warns,
in
over
1957,
Angeles
The Bond Club of Los
has completed the ap¬
wage-price inflation; i.e., adverse effect
Joining the U.
S. Chamber of
of Witherspoon & Com¬ Commerce and the AFL-CIO in
Inc., announced on Feb. II. hailing the achievement of $2 an
Bond Club Committee Chairmen hour
average
factory workers'
for the year will be as follows:
earnings, for the first time, in
Program, William S. Hughes, of 1956, the "Monthly Bank Letter"
Wagenseller & Durst, Inc.; Enter¬ of the First National City Bank
tainment, Mark Davids, of Lester, of N. Y. is remindful of the differ¬
Ryons & Co.; Finance, Allen D. ence between "real and illusory
Harper, of Pacific Mutual Life In¬ gains," and, after adjusting for
surance Co.; Attendance, Bernard
price
changes
concludes,
"the
J. Johnson, of Bateman, Eichler
[wage] record represents substan¬
& Co.; Publicity, David C. Pear¬ tial
progress, and the figures be¬
son, of Bingham, Walter & Hurry, come still more impressive when,
erspoon,
pany,
measured
against
those
of
the
twenties."
With Goodbody Co.
The
DETROIT,
Meier
is
Mich.
now
—
John
connected
L.
with
Goodbody & Co., Penobscot Build¬
ing.
a
bigger, better railroad.,
February
examines
(Special to The Financial Chronicle)
concern
capital out¬
on
lays, and conflict between full employment and price stability.
pointment of all committees, Bond
Club President William D. With-
of a series telling what Chesapeake and Ohio
doing to make this
reached in 1956,
wages
forces must be contained, and examines two forms of
Inc.
business.
hourly
LOS ANGELES, Calif. —Look¬
Fla. — Jerry
Inc., has been
Co.,
Wages, Productivity and Inflation
First National City Bank, impressed by record high factory
ing forward to expanded activities
with offices at 238 Royal
and
Angeles Bowl Club
Appoints Chairmen
BEACH,
&
23^
(795)
The Commercial and Financial Chronicle
the
"Bank
Letter"
Automobile Workers,
announced in.
December he planned to 'wallop*
the auto industry next year for:
the 'biggest wage increase' in his.
union's 21-year history. Early in#
January, David McDonald, Presi-.
dent
United
of
Steelworkers
of
America, said his union was con¬
sidering going after 'some form;
of
shorter hours with
loss in
no
pay.' One of the 'possibilities* he
mentioned Was an extra three-tofour-month paid vacation every
five years for each union member.
"Nor
reliance
.
be
placed
upon the comfortable assumption
suggested in the AFL-CIO quota¬
can
forces
responsible tion cited above that union wage
advance, and finds pressures will spur management
that it is "encouraging to note to more
cost-saving expenditures,
AFL-CIO
acceptance
of
rising restoring profit margins and pro¬
productivity as the basic source of viding a sustaining flow of busi¬
labor gains, notwithstanding that
ness to the capital goods indus¬
featherbedding and other restric¬ tries. This might be true up to a
tive practices by some unions have
point, but as explained in the
often done violence to this prin¬ President's Economic
Report:
ciple. There is no denying that
"In some cases, declining profits
union
pressures
have . spurred tend
to accelerate capital outlays,
management to seek ways of off¬
as businesses seek to reduce costs
setting higher wage costs by in¬
through installation of more effi¬
creased efficiency.
The essential cient
productive
facilities;
in
point,
however,
remains:
the
others, capital outlays are ad¬
money to pay the higher wage§
versely affected, as lower profits
for
the
solid
,
would not have been there but for
the- huge
investments in laborand
cost-putting equip¬
saving
essie
looks
to
ment.
the future
•
estimated
"As
a
year
of significant growth for
Jpeake and Ohio. But 1957 should be
|better
Chessie's Railroad
year as
|t
over
$90 million went into
cars, new
new
yards,
diesels,
new
Ithan half of this
new ore
con-
hew
and coal
signal systems — and
capital expenditure
plan provides for
Ivemen.ts and
new
freight
cars,
All of this expansion means
better and faster
service for C&O customers.
Chessie's growth
keeps
with the steadily mounting de¬
for coal from the steel, electric and
pace
mands
ican coal
weekly
even more
equipment, including
are
going to
fuel-hungry
Europe. New, efficient facilities will better
serve
the
which C&O
new
$3 million invest¬
vance
a
th^export of coal.
billion dollars
totaling
more
than
a
half
during the last decade, Chesa¬
peake and Ohio is already practically
a new
railroad. But with faith in the future, Chessie's
out
of every ten coal
shipment
overseas,
cars
loaded at C&O mines
with
every
indication of
ing coal exports through the years ahead.
Id you like a copy
railroad is
planning, working and spending to
keep its place in the forefront of transporta¬
tion progress.
of C&O's 1956 Annual Report? Write to:
esapeake and Ohi«i
economic
Commerce
should
not,
in
kind of society in
Which
inflation
want,
we
to live."
;
*
.
AFL-CIO
the
and
of the tendency of
cause
good
time,
be
Inv. Dealers of Canada
realized.
Announce Courses
"But this goal will be meaning¬
inflationary forces
In
the
view
of
the
major
inflationary
today, both in our domestic
economy and abroad, arises not
from the fiscal and monetary poli¬
cies of governments but from the
upward Wage Jif^ssures of power¬
threat
ful
unions.
trade
This
concern
inflation,' prompted
by repeated rounds of wages and
price increases, manifests itself in
over
'wage
two forms.
"First, such concern is rapidly
becoming the foremost worry of
businessmen for the months im¬
TORONTO, Can. —The Invest-:
ment Dealers Association of Can¬
ada
Your
Money
been
Argent
layed
by
recent
labor
statements
leaders
as
to
al¬
of
the
and fringe benefit
demands with which industry may
further
wage
expect to be
confronted.
Reuther, President of the
Walter
United
en
Valeurs
Mobi-
lieres"is available to mmeber firms
price of $19
per copy.
Orders should be sent
to L. F. Almond, Regional Director
of the Association, 132 St. James
Street, West, Montreal.
and
employees at
a
Three lectures on
it
as
affects
aspects of the
securities
the
business will be given
27
with
Vice-President
W.
of
L.
in Toronto
Somerville,
Stock
Toronto
Exchange, speaker; March 7, W. N.
Duggan, Registrar, Ontario Secu¬
rities Commission, speaker; and
March
hardly
and
Votre
Feb.
are
into French
the title "Comment Placer
competition growing, more and
more enterprises are finding profit
margins squeezed. They are won¬
dering how far this will go and,
how much it will affect expansion
worries
Securities"; has
in
translated
under
law
plans.
that their Corre-*
announces
spondence Course "How to Invest
mediately ahead.
With over-all
business activity levelling off and
some
3809 TERMINAL TOWER, CLEVELAND f, OHIO
time. It;
.
"Such
Railway
our
to provoke government interveh-:
tion and direct controls—ofthe"
many,
With improvements
major issues of
continuation of the advance in
of
^
of the
involves questions hot only of the
value of our moriey, but also—be-:
ful only if the
are
contained.
-
American
the
of
efficiency that
helped to raise wages to $2 an
hour, there is no reason, why the
$3 goal envisioned by the Chamber
Airways, Incf, nationwide and
$50 million corporation to ad-
dismal
a
making
possible
higher real wages .and an im¬
proved standard of living. Given,
general
international air freight carrier; arid to sea
ping, Inc.)
is
ence.
in
economy
a
through its partnership in American Coal Ship;
This
are
prospect for those who must live
on' fixed
incomes or savings, as
many know from bitter experi¬
ground," according to
"How the conflict between full
First National
City Bank, "for employment and
stable money
genuine
satisfaction
in
these will be resolved has become one
Chesapeake and Ohio expansion been
Slick
inevitable.
with 12 of the 20 groups showing
Wage Inflation
confined to its 5100 miles: of rail line. It * is
ment in
or
"There is
serves.
a
ability to maintain
augment these expenditures."
by the National
ployee of more than 50%.
industries to the rich territory
reaching into the air with
and
financial
Conference
achievements
Nor. has
incentive
rises in average earnings per em¬
healthy growth of present industries
and attract
the
.
chemical industries. A million tons of Amer¬
vast
|aid for in cash out of the Company treashis years
more new
an
growing and going.
'ear
$70 million for
both
Reconciling Inflation and
Board last
Employment
November, the capital invested
"The second form of concern
per
manufacturing, production
worker in early 1956 amounted over wage inflation has to do with
to nearly $14,000, about double the the longer-range problem of rec¬
'46 figure.
In a similar study in onciling price stability with fall
October, the New York Stock Ex¬ employment. More and more, the
change calculated that for 19 out conviction has been growing that,of 20 manufacturing industries, the with governments everywhere
capital invested per full-time em¬ committed to full employment, we
ployee increased more than .50% are in an age of inflation in which
between
1947
persistent
upward
trend of
and
'55.
In
the a
wages and prices and a decline;
same period wages paid in these
industries scored sharp advances, in the purchasing power of money*:
Industrial
was
reduce
14, D. R. C. Harvey, Q.
C^
Daly, Thistle, Judson and Harvey,
speaker.
The Association is also sponsor¬
ing courses in "How to Invest Your.
Money in Securities": in Hamilton,
Ottawa, Norwich, Montreal^ and
Halifax
in
1957.
24
The Commercial and Financial Chronicle
(796)
Continued from
page
5
J
1
a
totals ,are influenced by the volume ol
.
.
Average Hourly
Earnings
security trading, the totals
mm
m
n
Y
■
fl
outside New York City
■"
Anatomy of the: Puce; Inflation And Steps to Thwart Further Rise
m
m
mm
.1
.VI
mi
m
¥%•
.
anticipated
sures
Korean
result of the
take place,
as a
failed
war
to
sehsitive
prices began to reverse
their rise. In fact, currently, the
index
is
only moderately higher
»
What has
happened to these
prices in the past year and a half?
Since
May
President
Of
24
the
products
shown in the
tabulation, nine were
1 lower in January 1957 than in
May 1955 and one was unchanged
in price; 14 commodities had increased
in
price.
The
largest
increase was for steel scrap which
advanced
clined
90.6%; it has since delittle.
a
freme,
the
At
other
ex-
beans
recorded
a
35.3%.
Half
of the
cocoa
decline
of
commodities
within
showed
range of
a
changes
plus and minus
6%.
A
Price Behavior
similar
pattern
of
creased by only about 1% in 1956.
Total
demand
deposits
showed
little change despite an $8 billion
increase in commercial bank loans
because this was offset in part by
liquidation of investments,
a
oar-
government
securities,
of the rise in time
Under
conditions
of
ticularly
because
and
deposits.
fof copper scrap. It is interesting
to note that sensitive prices Kke
lead scrap, and rubactually declined during
the past year despite the general
rise in the price level. This is not
copper scrap,
ber have
the
behavior
would
one
"nder conditions
of
expect
general price
reduced
bile
level
of
activity
characterized
the
automo-
industry
and
residential
large
overall
credit
suited
in
have
not
significantlv
a
of
expansion
would
re-
higher
led
prices."
wjth
0f
World
the
to
War
total
was
end
the
to
demand
deposits
the
banks
This
billion)
increase
in
tremen-
supply
money
potent factor in the large
postwar rise in prices.
a
an(j
war
jt is encouraging that we are not
experiencing any significant rise
money supply
to
measure
icy
This
which
in
due
large
tighter monetary polthe
Federal
Reserve
Board has appropriately instituted,
Omy.
mand
Factors Contributing to Price
Rises
deposit
turnover
by
the
Federal Reserve Board, there
was
an
increase of 6.6%
in New York
Lnl^C%dUrthng
y?ar,arVi
due
the sameType6 oiT factors
centers in 1956
and
6.8%
1955,
337
in
other
♦Viof
•
■
Ovnonc{n«
,-r,
expansion
in
/
TnnrM„~c
"
^
.
to
are
operating, if
formulate
have exceeded by
Th
■rv,,U^e»
Federal
*
j-u
.el
iThe
to
regular
e.,,^1
®uar
surplus Of
billion for
the
will
a
^.
each
less
further
In
June
motive
;
a
.
•
J™0111"?'
picture
Of
Thls
a
inflationary This
Situation
which
is
is
in
,
not
budgetary
sharp con-
frast to the huge deficits and
eompanying
IS
Federal
Budget which is deflationary
tremendous
rise
18
1955,
months
average
ac-
in
a
earnings
earn-
were about the same.
To
have
2.18
1.86
+5.8
+6.9
extent
a
fhat
'
* "
"j * * *
.
output
per
risen, the unit labor
compafty
risen
less
attention
industry
or
than
indicated
is^evoted
aldtte.
to
How
la¬
much
productivity risen during this
period of a year 'and a half? Al¬
though precise estimates are not
available,
mation may
a
'rough
be made
available
approxi¬
the basis
on
datcfc for
production
and manhours.
manufacturing? manhours
In
1956
to }have
appear
in
increased
fractionally for production work¬
and
ers
little
a
for
rriore
non-
production workers;
During the
same period, the Federal Reserve
Board
index
of? production
of
manufactures increased by 2.8%.
These data Suggest a rise in pro¬
addition, fringe costs
rose.
Clague
ported
was
mid-1955,
in
unit
5.3%
$1.88).
In
in
rise
June
Price Indexes
by
June
1955
1
All
commodities
Crude
Nonfood
materials
fuel....
except
Fuel
Intermediate
materials,
and
supplies
and
materials
Materials
components
food
for
Materials
for nondurable
for
durable
Components for
Materials
and
for manuf'ing
manufacturing
Materials
goods manufacturing
goods
manufacturing..
manufacturing
89.9
96.2
for construction....
components
consumer
nondurables
.
SOURCE:
r...............................
U.
S.
Bureau
84.8
115.5
+ 7.2
110.1
117.2
+ 13.9
of
Labor
115.7
119.4
124.2
+ 7.3
+ 4.0
117.1
120.9
125.9
+ 7.5
+ 4.1
100.0
94.8
100.1
+ 0.1
+ 5.6
102.4
103.7
105.0
+ 2.5
+
137.2
144.7
151.1
128.2
137.5
147.9
+10.1
+15.4
+ 7.6
124.2
129.0
133.0
+ 7.1
+
U0.6
111.5
116.0
+ 4.9
+ 4 0
106.5
+ 2.5
106.1
109.2
ln2 1
<>8 3
I"! 8
0 3
+ 3.6
108.7
110.7
+ 3.1
+ 1.8
115.1
118.1
122.5
+ 6.4
+ 3.7
127.1
132.9
143.9
+13.2
+ 8.3
58.5
66.7
+ 6.0
105.4
129.3
122.2
2.3
84.2
80.2
85.3
+15.9
+ 1.3
"
65.3
62.9
71.8
+10.0
+14.1
$0,115
$0,106
$0,116
+ 0.9
+ 9.4
.571
.574
.594
+ 4.0
+ 3.5
.365
.310
.236
-35.3
.350
.415
.298
—14.9
-28.2
1.461
1.248
1.345
-
7.9
.336
.339
.334
-
0.6
+ 7.8
1.5
.141
.119
.144
+ 2.1
+21.0
.132
.155
.140
+ 6.1
18.750
11.750
17.700
.122
.108
.153
.082
.092
.085
.137
.206
.186
08
yd.
lb.
bu
Cotton,
Percent
change
."
...':
.;
beans, lb
Copper scrap, lb..
,«*•••'
lb.,
Cottonseed
Hides, lb.
Hogs, 100
14 mkt. av£V.
oil, lb...
,
do..."
lbs
Lead
+5 9
Print
+50
cloth, yd.—
Spot and nearby.,.
Most
Lard, lb
lb
scrap,
4'.>-
Nonmetallic minerals, structural
125.4
131.3
+4 7
^SSili7her
Fuel,
llti
uti
£'{
109.3
113.1
Rosin, 100 lbs
Rubber, lb.
+35
Steel
+3 5
Steers, 100 lbs
Sugar, 100 lbs
Tallow, lb
Tin, lb
Wheat, bu.—
Kansas Ci'y
Minneapolis
durables
117.3
121.4
Pu,p' paper' and allied products.,
123.6
127.9
+3 5
88.8
91.6
+3 2
S0URci:
U.
S.
..!.!.!!!!!!
Department of Labor,
Bureau of
125.1
99 4
+28
108J
Labor
120.9
Statistics.
-
3.4
+ 2.6
+11.4
-
3.1
+14.0
-
5.5
+ 5.6
+16
distant
scrap,
'
21
—3.4
Wool tops,
contract.......
•-
ton
?y>
'Y-.
'
lb
U.
S.
-
-
9.7
5.6
+50.6
+25.4
+ 3.7
+41.7
-
-
0.5
-
-
7.6
9.7
.188
.195
.188
9.200
9.600
9.700
+ 5.4
+
.318
.422
.344
+ 8.2
-18.5
32.000
51.000
61.000
+90.6
+19.6
23.000
21.375
22.375
6.000
5.830
6.400
+ 6.7
.062
.072
.069
+11.3
.915
1.064
1.012
+10.6
2 462
2.150
2.330
0
-
2.7
-
3 6
1.0
+ 4.7
+
9 4
-
4.2
-
4.9
""M:
Zinc, lb
SSURCE:
-23.9
■
L
...........
Lumber and wood products...
+ 3.5
COMMODITIES—
+6.9
1*7 9
1957 From—
Jan. 10/56
62.9
88.6
151.0
May 31/55
+ 3.6
103.1
Rubber and products
Per Cent Change to
—Jan. 10,
98.6
Burlap,
106.6
10,
1957
83.3
152.4
Chemicals and allied products
Jan.
92.1
Butter,
96.7
10,
1956
74.8
98.2
Hides, skins, and leather products
Jan.
89.8
143.9
Furniture, other household
+ 2.9
101.8
Metals and metal products
Foods, processed
Miscellaneous
-
90.8
industrials
+7.9
p^lV'=ni '(.ois
3.1
107.4
89.0
Raw
143.5
materials
1.3
+ 4.4
Statistics.
+ 0.4
< 1947-49=100)
fa™
-
GR0UPS-
133.0
82.9
ito
+11.9
+ 0 5
+ 6.4
75.8
114.9
102.9
1947-49=100
Machinery and motive products
Farm product?
lighting
5.5
89.7
107.7
May 31, 1955, Jan. 10, 1956, and Jan. 10, 1957
December 1955-Dccember 1956
and
+ 7.0
TABLE 4
Corn,
power,
+ 4.4
0
Daily Index Numbers and Spot Primary Market Commodity Prices
Cocoa
1956
Dec. 1955
+ 5.3
goods:
Foods
Changes in the Major Groups of the Wholesale Price Index
1955
—Dec. 1956 From—
June 1955
86.2
I ABLE 2
to
components:
7-'^...
Total
+ 2.8
Statistics,
Dececmber
De;,
1956
96.2
+ 5.3
December
appears
maleiidls:
116.2
Labor
Dec.
1955
116.2
110.3
Bureau of
em¬
Economic Sector
111.3
1955
Department of Labor,
period, total
productivity
110.3
May 31,
U. S.
same
1947-49=100
+ 5.4
-
1955 to
1955, December 1955, and December 1956
+5.4
120.9
quarter of
TABLE 3
147.9
123.7
second
Thus, for the entire economy, the
with
compared
121.4
•*•
rose
higher in 1956 than in 1955
($1.98
140.3
—
product
ployment increased by about 2%,
earnings
hourly
115.2
95.6
national
were
Average
+ 5.9
103.1
of
real terms, the rise was about 3%.
in 1956.
+ 6.1
95.2
The
excess
During the
than 2%
more
no
113.1
103.9
in
$413.8 billion in the third quarter
of 1956, an increase- of 6.8%.
In
131.3
1.4
costs
$387.4 billion at annual rates
the
in
106.8
1.6
labor
Gross
from
123.7
+
costs,
5%.
+ 7 0
+
appears
labor
manufacturing industries.
in
w 4
91.6
leveling
in the lat¬
Thus, since
result appears to have been *a rise
124.6
108.3
of
that • in¬
including
wages and fringes, have far out¬
stripped the gains in productivity
929
123.6
it
in
creases
115.6
89.1
concerned, there
indication
[in productivity]
ter part of the year."
Commodities other than farm products and foods
106.8
meeting
last
later quar¬
as
ductivity in manufacturing indus¬
+14.9
+12.9
121.6
some
re¬
Industrial.
out
+8.1
+ 7.8
Chemicals and allied products
Textile products and apparel...
Foods/ processed
Board
that "Insofar
were
Labor
tries of
Producer
Tobacco manufactures and bottled beverages......
Evan
National
a
ters in 1955
143.5
commodities
at
Conference
year
127.9
structural
Dec. 1955-Dec. 1956
Commissioner
127.1
minerals,
Change
1.74
9
payments
yet
Per Cent
2.06
Goods.......—
-4t*
\ * * * *
has
of
Dec.
-.
Goods*.
118.3
SOURCE:
t
*
Earnings
'.
of
Other
152.4
tion
+6.2
the
per-
an even larger propor-.;
because of the increase in
1956
manhour has
costs
costs
hour by
$2.05
Total
Chaw'
dustries and total labor
1955
Total
indus-
December
average
in-, by
Foodstuffs and feedstuffs-..
hourly
year
half of price rises,
a
$1.93
Nondurable
la--
including fringes
by more than 10%)
con¬
Dec.
-
,
-
Clearly, total hourly
Manufacturing^,
Durable
..
.
+4.5
+4.4
industries by
Average Hourly
All
+9.6
-
-
welfare pro-' fringe benefits.
Wholesale
following
»'•»
cash
the Federal debt is
being reduced
bv
-modest
amounts
Thi*
{*.
Clearly
the
132.6
products
M,mber a?d wood products
a
eacn
Lul
hourly
in
1.86
.During
the
past
12
months,
hourly earnings have risen'
6.2%
in manufacturing
in¬
are
and
war
ings in all manufacturing
Miscellaneous
$2
MS lSyear. e£CeS.S
°L$.3 bilIi°n
During this period
in
rise
2.18
siderably more—during this
Pulp, paper, and allied products
am
eh™,,«
The
year
the
$2.05
1.99
1.70
rise
of substantial proportions.
Rubber and products
black
than
during
economy
$1.87
Mf.
j.au
we
,.7^; ^ Will show
little
sharn
tries rose by 9.6%; the increases
Budget
in
bee
Jpne 1955-Dec. 1956
payments
and
unemploy-
manhour.
per
u
i
be
ha
result
During the fiscal years 1955-56
1956-57, the Federal budget
estimated
in output
wide margin
and
Per Cent Change
1956
and in many
houftand liberaliza-
of pension
unit labor costs throughout the
and
is
a
...
m
Fuel/ power, and lighting materials
Furniture, other household durables
P°licyThe
I Greater
«
for durable and nondurable goods
public
proper
rw«
^.
New York City industries
Nonmetallic
fant to understand the
nature of
the price rise and the basic
oreswhich
generated
,n Produptmty
Increases in average hourly
earnings and various fringe benefits bave been of major magnitude during the war and postwar
years. The increases in labor costs
HjdeS/ skjns< and ,ealher producls
productivity.
.
r
,
reflects
reporting
Since
Machinery and
should like to review each of
these factors briefly
It is imnor-
lire
lar8ely the pressures
by a business boom,
Metals and metal products
tion Of the business boom
and increases
in
labor rosts in pvop«
A, iho
^
7. V? excess
u
rise
1'l947-4»==100)S<*
combina-
a
price
costs
Dec.
1955
have increased
plaft|. which cost 3
an
Durables
from
,7
does reflect
rise
the
June
! accompanying
bank
rnu-
tion
Total
large increase in money supply
including deposits and currencv'
sures
fact>
June 1955—December 1956
a
I
In
Changes in the Major Groups of the Wholesale Price Index
0 beep ln min(*
or
steel industry
capacity and could
at
not meet all demands. As I noted
earlier, 'these areas of shortage
experienced the largest price rises
during the past year and a half,
signifi-
credit
the
year,
operated
f°r- PriCeSl
mat
bor
costs.
lustrations
Jane
visions.
an
meas¬
labor
supplementary
benefit
to 5 cents
Finished
tills price rise does not
result
from large government
budgetary
deficits
with'
an
srrnmnanvincr
t
the
of
TABLE 1
postwar years? How does it differ from that earlier rise and do
these differences have
The
of unfilled orders which aceumulated in the durable goods in¬
dustries as the affected industries
operating at capacity could not
as compared with
which resulted in the explosive
rise of World War II and the
early
"If
cents
not
Total
City, 5.7% in six other large cities,
It
ment
faster rate. Ac- mid-1955 has been marked by
a
What factors explain the creeping price rise which has been tak-
any
18
fringe
Money has been Passing from postwar years. The period since
cording to data compiled for de-
econ-
higher
sure
on
many
of
the
durable
goods industries. One evidence of
this pressure is the large backlog
in the current the gains
is
an
the
of
earnings does
available,
clude:
.
The Business Boom
One characteristic of a boom is
the shortages which develop in
some sectors of the economy. The
1956 boom in plant and equipment expenditures created pres-
m
$42.3 o
billion
rf(
Than
%
the
/m
Ga,ns
bv
$102 3
^ous
situation
II
1940
outside
currency
rosde
in
sharp contrast
a
Of
end
1945,
anrl
have
we
the
rise
greater
a
40)
(p.
Again
From
to
band to hand at
upon
^
these
not
bor
pected during a boom which has
impact
Goods, :,L
the entire rise in
ure
when
or^ehav^or1 That1 would6 be^e™
uneven
been
total has
intensively.
more
capacity operations in key sectors fill all orders promptly. Unfilled
the economy, a larger rise in orders in the durable goods inand
demand
deposits dustries increased from $52 billion
could
only have meant further at the end of 1955 to about $59
pressures on the price level.
The billion at the end of 1956 despite
Report emphasizes the heart of the rising volume of deliveries
the problem when it concludes: during the year. In the latter part
situation.
which
active deposits
business
boom
currency
S
!^esf decli.nes.
are ex: in
plamable, however
in
terms of
the
very
..
Goods
increase,
in
of
have
price decline of 28.2%
usually create
little change, that
past year. From Jan. 10, 1956 to
Jan, 10, 1957, 10 commodities declined and one was unchanged in
a
The
^ed
national output, but would instead
hogs arid
Durable
Nondurable
hour
surplus
of price behavior is shown for the
price. The extreme changes were
a
price increase of 50.6% for
Manufacturing
This greater turnover of
pointed
Money Supply
bank
diversity
activity.
properly
The total money supply was in-
"A
Uneven
zi,dztcLi "ts
"prevented additional strains on
the economy." (p. 40)
1955, the overall
index has risen only 3.5%. In the
past year, the rise has been 2.6%.
products.
All
budgetary
has
the
that
31,
Table 4 shows the wide diversity
in price changes for the individual
usually
public debt which characterized anc[ second, the
In addition, there has been a conWorld War II and the first post- with the accompanying spirit of siderable
increase^ih the so-called
war year with the accompanying confidence. While the total supply fringes during this
period. Overlarge inflation in prices.
The 0f demand deposits has shown all estimates of tbte, magnitude of
out
than in 1950.
.
are
Thursday, February 14, 1957
.
Bureatf of
Labor
Statistics.
-
5.4
+ 8.4
2 471
2.325
2.335
5.5
+ 0.4
1.815
1.555
1.950
+ 7.4
+25.4
.125
.140
.140
+12.0
-
0
Volume
Number
185
5612
.
Chronicle
The Commercial end Financial
.
.
have been less than the long term
automobiles, and semi-annually in
annual
other
On
of
rate
gain of 2%.
basis of these data,
the
appears that
ana
half
a
tracts
provide for
vance, wage
benefits outstripped
the
gains
on
page
he
concludes
34
the
of
that
point
this
emphasizes
where
report
for
1956, "only
probable 4p 1957. If
the index "should be
it. will
cents
smallness
creases
.
tributed
costs
in
1956
.
.
gain
con¬
in unit labor
the rise
to
and, in turn, to the increase
No
Inflation
Explosive
is
virtually
unanimous
labor
cost
in
in
in
increases
productivity
President
result
has
year
prices
his
is
sound
on
conclusion
"The
during
the
that
in
ground
of
heavy de¬
goods
rising la¬
economy,
If the in¬
light of these
visions,
in
price
for
increases
materials, components, and
supplies.
And
these
became
creases
whom
also
were
these
price
keep in mind
attributable
will
tion
flowing from
fiscal
factors.
background
flation.
further
long
infla¬
an
as
and
not
price
assured
of
seem
in
ments
the
wage
adjust¬
key
areas
will be
these
in other
ing wage increases
of
tors
the
is
remain
still
Under
tiated.
impossible
labor
to
to
these
be
ability of such
Proposed to
much
not
To
their
'
Limit
what
to
With
further inflation, the
emphasizes three areas
will
Voluntary
5%
in
rise
limitation
of
price increases by labor
labor
unit
Price
and
and
Wages
prices
I
of
Wage
be -attended
can
v
Increases
other
fair
are
to
the
bene¬
of
rest
involved.
the
rise
and
continuation
a
later in
the
year,
should
The President
failure
ities
to
inherent
could
lead
to
assumed
be
There
this
stable
a
little
be
can
objective.
in
ductivity
with
quarrel
Wage
excess
of
result
in .higher
labor costs, which
dol-
gains in
in¬
pro¬
unit
create pressure
Nevertheless,
nize that many
must
we
recog¬
key sectors in the
economy are not free to apply this
proposed
standard
important
many
cluding
in
For
1957.
industries*
automobile,
steel,
in¬
elec¬
trical equipment, railroads, meat
'packing, agricultural implements,
and
coal, wage increases for 1957
and
in
some
for
cases
have
1958
-already been incorporated in con¬
BLS
tracts.
lion
workers
are
that
contracts which
.term
tiated
is
mil¬
covered by long
reports
in
but
a
1955
or
small
1956.
5
were
nego¬
While this
proportion
of the
that ".
.
free
that
that
such
price
and
price
and
'peacetime.
an
fixing
which
create
—
I believe that better results
fiscal
can
through monetary and
policy.
negotiated
scheduled
In
hour.
is
ally
ment
in
to
be
made
for
in
or
7
some
are
cents
'
'
further
an
are
Although
considerable
'tarv
adjust¬
that
The cost of livmade
industries,
Monetary Policy and Fiscal Policy
usu¬
if the cost of liv¬
wages
adjustments
terly
6
addition, provision
ing should.rise.
'ing
^idustries, the
quar¬
such
as
and
"To
President
gives
emphasis to
policy, he
mone-
the
fiscal
states
Do
five
months ago.
years
placed
on
collection
manner
that by I960,
deficit of $5.6 billion.
136 Goden Street
partially
a
a
C. H. HAINES
gradu¬
basis in such
current
mate
<'
Belmont 78, Mass.
a
February 8, 1957.
fifty percent
"In addition to the
-
is
testimony of Secretary Dulles,
knowledge that
common
our
two strongest
ously wounded by our policies in the
'
credit,
mortgage
consumer
expand at near record rates? And
mortgage credit excessively rer
strictive
with
the
present
low
since
the
have
our
peoples of the free world
to
use
we
Mr.
danger of falling over.
not
it
If
stronger fiscal and
restraints are
.
monetary
The
rise
the cost
labor
in
in
W.
J.
Fulbright
the
prices has reflected
is
an
under¬
of
the prob¬
1
However, we are
expansions in money
large
supply. So
Federal
budget re¬
as
the
deficits
'We
a
price in¬
wage-price
runaway
Unless
the
is fed by an expanding
money supply, it is more likely
to lead to unemployment of re¬
sources
as
they are "priced out
the Middle
of Jordan, of the
cancellation
revival of talk
her troops from Germany.
seriousness
of
present circumstances,
our
statement, neces¬
the validity of our
policies."—Senator J. William Fulbright
raised
likelihood of
hastening, or even permitting,
sarily raises a question as to
or
policy prevents a sharp expansion
in money supply, there is little
the black and
should want to de¬
fighter planes, and of a
withdrawing
"The
monetary
mains in
reasonable
according to the Secretary's own
a
budgetary
policies.
no
collapse of the British influence in
of orders for
period of classic inflation
reflecting either Federal Govern¬
not in
program,
ceive us.
draw their support
these cost increases on to
There
our
seen
be thrown upon our
own sorely strained budget and
upon our armed
services. Already we read of British plans to with¬
push exerted by increases
costs in excess of gains
buyer.
have
East, vast new burdens are to
productivity in a lousiness boom
to pass
hostile, to
-
"It is clear that in
policies.
Conclusion"
in
unsatis¬
explanation of why Great Brit¬
ain and France, the two greatest
beneficiaries of our foreign aid
*-
inflation, they should be imposed.
The evils attending inflation are
more serious than those attending
-
so
spent billions of our
indifferent, if
have
"I
required to halt an
strong anti-inflation
—
treasure are now
certainly hasn't leaned far enough
to be in
strained
factory. Nations in whose behalf
down-pavments and 30-year ma¬
for mortgages?
The Fed¬
Reserve Board "has leaned
wind,!'
century
the
with
so
eral
the
the
relations
been
turities
Martin's descriptive phrase, but
turiV of
other
"
is
against
grievMiddle East
and in the United Nations. Not
making every effort to combat
on
the monetary front
inflation
when
in
esti¬
Excess of Receipts
of $3.0 billion, I would
1958
1955 through
adjustments, in¬
these
an
Many Questions/ But No Answers
but isn't this
larger bud¬
seriously believe that we
we
flation.
exclusively
on
monetary and -fiscal restraints as a
means
of containing the upward
movement of priced would raise
depend
the
of six
of
allies, Great Britain and France, have been
long
increases
wage
In
being
Making
stead
private economy?
ment
2
level
even
lem of inflation.
•
the "key wage bargains."
In many of these
spending,
standable concern with
be obtained
the
esti-t
estimate
less 5%.
lower
8.3%
1959 corporation taxes are
with the
even
the
successful under
more
than
ally
mate I would use the 1957
the trend has been
the corporation
about
So for the 1958
individuals.
budget
Federal
will
no
being
the President has
think
I
over-estimated the collections for
being
are
increases by exhortation has
never
succeeded in the past and
be
for two suc¬
trend,
with
and -which has made it relatively easy
wage
current conditions.-
downward
accrual
the
taxes and
of corpo¬
six months
corporation
the
in
worse
limit- price
to
the
balance
in
to pro¬
overcome.-
effort
behind
more
However,
in
by
the control program is
designed to
The
will
level.
Treasury collection
the same as for
corporation except to a lesser de¬
gree.
With the trend of corpora¬
tion tax accruals in a downward
it
3)
of
duction, impairment of incentives,
and
an
ever
widening area of
evils than
billion
$21.4
the
re¬
The trend of individual income
tax collections is
surpluses should be built
compensation for the boom
.
an-
rises
wage
only result in disruptions
controls
3.0
preparation
as a
a
program
is
failure
and
can
to
the
Budget Message, the collec¬
of corporation taxes was at
cessive quarters
pro¬
new
of
tax
to adjust for this
temporary dislocation.
up?
getary
Su^ph
foredoomed
be
and
22.0
3.5
corporation
of
ceipts by 9.1%
It is true that it is ex¬
that
time, when
the
government. I would like to state
categorically that I am completely
ouposed to any such program to
.labor force, it does cover most of
.
will
and
inevitably entails." (p.
words,
the failure
fixing
to
do
inflationary
spending
initiated?
pected
rise
to
of
grams
voluntary restraints could lead to
wage
is
who
time
accrual of
government spending
when
continues
they
intervention
freedom
inflation
groups
to the
21.4
Taxes
the
or
not
seriously believe that we
we
front
economy
other
limit
for price rises.
*
In
a
some
may
41.0
ration taxes lags about
really making every effort to
combat
inflation
on
the
fiscal
by government, with
proach
of
Do
responsibil¬
demands
benefits should be consistent with
and
the
in
larger
or
1958
38.5
credit, and bank credit continue to
warns
accept
productivity
and
antici¬
some
as
also subside.
of
maintenance
costs
pate, then the pressure on prices
loss
prospects
a
tions
in the sense
will be
Income
estimate
1957
Taxes
income tax liability
Federal
Budget Message from
Receipts.
the
of the
are
subsides
boom
At
one
no
This has resulted in
paying 110% of their
eaeh
year during this five-year period.
I think it would be only fair and
reasonable to reduce the Federal
year.
corporations
(Billions of $)
of
corporation taxes are to be paid
lowing
issue of the
published the
you
Income
Corporation
Surplus?
in 1960 and the balance in the fol¬
January 24
Individual
pressures.
of boom time
the
If
labor
in
of
as
not
the
to
still
enlarged
1957 largely
result
increasing
increases
wage
i
that we will expe¬
furthe? price rise of sev¬
a
the
Negotiated,
much
by
that
hurting
to
do
contribute
not
are
labor
immediately
persons
with
question
suspect
conditions.
the community as well as to those
creases
this year.
voluntary restraint to hold down
rience
Report, the President sug¬
gests that, "Specifically, business
and labor leadership have the re¬
sponsibility to reach agreements
-lar."
much
a
costs
success.
In his
the
by
Under those conditions, I
eral per cent in
that
to
average wage
increase
-
showing President's "Budget
excess of receipts of $3 billion
of
Estim. Receipts
best
no
an
ing for comment:
minimum. In these terms,
who
groups
likely in 1957
the orobability that produc¬
or
dan¬
estimated deficit of $5.6 billion.
an
cannot
effects
adverse
a
1958,
which I have selected the follow¬
Excess
sense
alternative
the
whether the President's appeal for
Voluntary Limitation
its
kept to
serv¬
happens
an
the
increases exceed these amounts.
has
supplies data
-
an
"least worst" policy
that
percentage, many indus¬
tries will be subject to a further
Monetary policy.
(3) Fiscal policy.
fits
a
smaller
business leaders.
on
and
the
in
the
President's
will feel its effects. There is only
The ability of indus¬
increase of 4
and
(2)
:
policy
for
limit
<wage and
and
products
In
"Chronicle,"
those
on
Unfortunately, there is
that
the
broad public interest in the prices
(o. 3)
understand
to
which arise when labor cost
gers
Chronicle:
white collar groups).
can
The Report also emphasizes
"businesses
must
recognize
on
and
with
pace
hurt
of attack.
(1)
com¬
^e ,.$tope thrpqgh
restraint
insofar
as
wages and other labor costs are
concerned during 1957.
ices."
educated
Editor, Commercial and Financial
inflationary
price rise (government employees,
teachers,
ministers,
and
many
keep
Haines
in
imposed
whose incomes do not and
prob¬
voluntary
set
in excess of national pro¬
ductivity gains and if the public is
look
Eisenhower
happens if
not
are
groups)
contribute
Further Inflation
President
similar
pletely nonexistent, it is clear that
tivity
Policies
the
action is
an
to labor cost in¬
to agree
creases
prevent
Message'- contains instead of
Who live on fixed incomes
(pensioners, dependents ©f those
in the armed forces, widowfe, and
the existing
Since
Readtf
groups
restraint
labor costs.
the boom persists.
as
increases.
to
are
But this objective
refuses
What Budget
Then the burden falls on the large
agreements and negotiate smaller
waee
because
must
we
we
arid
stable
LETTER TO THE EDITOR:
permitted to spiral?
and prices are
nego¬
conditions, it
and
the
to reopen
were
But
President
by
What
picture.
restraints
these
try to hold down its prices is not
so
tion.
in the past
seen
affected
partial
sec¬
industry
for
exercise
in
be done in
1957
(p. 3).
a
will only be achieved if manage¬
ment in major industries firmly
repetition of the current situa¬
2such 're¬
straints. But to state the problem
in these terms is to give only a
where con¬
economy
reached.
groups
in determin¬
potent force
verv
a
But
prob¬
increases
can
in
area
the
consistent
prospects
productivity
who will be quick to
versely
rates
wage
unrelated
rise
a
indicates
that
Little
wage
been
who have little responsi¬
bility for the spiral will be ad¬
in
increase
an
excessive
to the future if
4% to 5% in 1957. Past experience
of
eliminated.
remain
should be
benefits
with the maintenance of
"key wage bargains" already have
(p. 44).
have
we
in¬
background
modest
as
the
explosive
an
the
is
to
the
monetary
This
for
is
It
have
not
spiraling effect
same
a
rise
factors
many
(p.. 32.)
It is important to
a
to
experiencing
rising labor costs."
that
in¬
price
increases
cost
producers of finished goods,
of
a
semi-manufac¬
of
react
that
or
still
This is unavoidable regard¬
less of what policies are adopted.
And it is also possible that some
pro¬
they
range
the
or
fiscal policy, how¬
modest, will inevitably hurt
groups
will
of
labor costs.
monetary
ever
modified
there
Any restraint exercised through
some
extent
year.
contract
already
we
generally."
omy
called for by the President unless
costs, and renewed advances
prices of many raw materials
tured
dollar."
lem
the
To
sibility for the movement toward
a
higher
cost-price
level
and
would court the risk of being ex¬
cessively restrictive for the econ¬
bor
resulted
be
severity on sectors of the econ¬
omy having little if any respon¬
points,
increase of
in
broad
restraints would bear with undue
become effective in 1957.
tracts
combination
of the
past
that:
mands from the investment
sector
*•.
forces
the
indicates
more
or
President
as
pointed out.
This brief review of the
r
affecting
of
excess
will
higher prices
for
pressure
the
and
with
spondingly greater. In addition to
provisions for wage
changes, some contracts provide
for additional fringe benefits to
In
major' pointed squarely to the proper
goal in this area in his statement
monetary that: "Negotiated wage increases
a
policy are used to blunt
boom, one of the major factors
contributing to price advances will
living costs are larger,
increases will be corre¬
the wage
agreement among economists that
gains
in
than" to
and fiscal
the rise in
industries I have listed.
the market"
the
these contract
prices."
There
'
the
of
prices, moderate restraints would
not
be
sufficient; yet stronger
hour in most of the
an
mainte¬
price inflation.
two
wage
a
mean
four
very
of
for
the
to
growth and sta¬
bility. In the face of a continuous
upward
pressure
on
costs
and
in the
increase
small gain in overall pro¬
ductivity is indicated
the
a
an
hour
an
the con¬
increase of
every half
obstacles
of economic
nance
consumers'
price index. Further advances in
the consumers' price index seem
point
significantly
productivity.
The
in
cent
one
serious
and
iron
In most instances,
of
President
like
steel.
it
during the past year
creeping price ad¬
increases plus fringe
industries
25
(797)
and
think
as
not
only
policies, either
spiral
great
a
to the
by
•
situation.
questions have been
recent
policies—
events or as to recent
but we are far from sure that a
would do much to remedy the
—
partisan debate
many
validity of our (foreign)
-
26
<793)
The Commercial and Financial Chronicle
Continued from first page
f As
of
See
We It
restraint
which
vidual labor leader
will
control
union
or
1949
■
and
National
inflation" and
"no
indi¬
It is
—
with all
this
it
is
futile
be "reasonable."
so far as labor is concerned for the
that it has been permitted—nay, encour¬
reason
aged—through the years to build up a tight monopoly.
Merely to call upon monopoly not to exercise the power it
possesses for its own advantage is never effective, wheth¬
er that
monopofy be in the field of production and trade
or in the field of
labor, and it is not likely to be in the
future. To be
perfectly frank about it, the President is
likely to find it futile to ask businessmen to ask lower
prices than their customers willingly pay—certainly not
There is, of course, little that is new in
any of these
observations. The tragedy of the situation is found in the
when such lower
ever
respect be it
one
such
prices cut seriously into profits. What¬
think of the rights and wrongs of them,
may
of action in
courses
the "advanced thinkers." To
situations like those now
existing
simply do not work.
And, it is a good thing that they do not work. Prices
(and wages are the price of one kind of service) have im¬
portant functions to perform. The President would do well
their
to take another look.
said—has
ancient
apparently learned nothing from history, either
quite modern, of such situations
or
as
.
these and
forgotten nothing of the ready remedies so regularly pre¬
by the easy reasoners among the politicians and
scribed
that
his credit, he would
accept
prescription with reluctance, but the fact remains
he seems to
suppose that it can in some way or other
the infirmities that he finds
cure
afflicting the
(now
argument
others of influence with the rank and file) is
economy.
a
What
we
are
what
we
had to expect in
light of the salient elements in
not
higher than actually is the
lar
movie:
this—and
The true
inwardness of
the
is
Since
early 1933, sometimes quite consciously and with deter¬
mination, sometimes with indifference to consequences,
and
sometimes
having
convinced
fashioned natural forces
ourselves
that
old-
longer operate, we have been
pursuing public policies which invite what is commonly
termed inflation.
Throughout most of the New Deal years
prior to World War II, higher prices were
avowedly one
of the major
objectives of the Federal Government. Dur¬
ing the war inflationary forces were built up on a massive
scale, although held in check temporarily or better
said,
perhaps, obscured by controls of one sort or another which
could be exercised after
no
a
fashion in times of all-out
Following the end of the conflict, fear of
sion
was
so
great and
so
a
widespread that
serious depres¬
no
thought of
holding inflationary forces in check was entertained. A
real explosion was
probably prevented by lack of con¬
fidence in the course of affairs in
Washington. At any rate,
loose fiscal
and
credit
ruption for long
years.
policies continued without inter¬
budget though far too large is in balance. So far, so
good.
The fact of the matter is
though that the fiddler is de¬
manding his compensation for many past years of un¬
fortunate performance. So
enormously had the volume of
credit
outstanding become before the current
money
"tight"
policy developed that
a good deal of it
When further credit became
cult to obtain, and when
demand for
active
very
use.
continued almost
gan to put
feverishly,
their funds
to
owners
was
more
not in
diffi¬
goods and services
of bank deposits be¬
intensive
more
use.
This latter
change in behavior is clearly revealed in
the bank debit
figures published by the Federal Reserve.
In 1949 demand
deposits in New York City turned over
some
been
27.9
times in the
course
of the year;
rising almost continuously
the rate has
since, and by 1956
It had risen
only to 34.4 in the
Eisenhower's first election to office.
ever
reached the level of 46.1.
year
of President
The increase is somewhat less
spectacular in other centers
-but is nonetheless
very substantial—from 20.9 in 1949 to
29.0 in 1956 (six other financial
centers) and from 15.9 in
Middle
East
Crisis
we
be
can
Now this isn't
in
interest
due
on
31, 1956. In addi¬
tion, import duties on gasoline and
other petroleum products were in¬
creased, higher income taxes were
threatened, and the Chancellor of
the Exchequer announced that, as
first requisite for restraining
a
domestic
the
demand
Middle
of
credit
played
so
must be
need
in
the
face
of
East
crisis, the policy
restraint, "which has
important a part already,
firmly maintained and if
be
strengthened."
These
steps
taken
by
Britain
indicative of those which will,
are
to a greater or lesser
extent, have
to be taken by the other countries
of
Western
doubt
no
Europe.
impact
the
and
on
ury,
and
As you
have
observed, they all have
direct
a
on
our economy
States Treas¬
United
thus
on
our
and
money
capital markets.
analyzed
and
omy
our
So
to
demonstrate
the
businessmen
the
and
money
far,
tragedy
reaction
and
of
would have you believe.
of
consumers
but
an
it
extravagant
is
made
in
all
seriousness.
Any interference with the flow
of oil, our modern
energy, is bound
to
be
serious
in
an
oil-hungry
world.
This
is
particularly
true
of the flow of oil from the
Middle
East,
as
it is vital to the economies
Europe.
In fact, just before the
crisis, Middle East oil production
had
soared
to
3,800,000 barrels
daily, or almost one-half of the
production
World
of
other
States.
But
the
entire
than
the
the
Free
United
blocking of
the
Suez Canal and the
the
Iraq
sabotaging of
Petroleum pipelines in
cut off
85%
of
the
to Western
Europe.
help
of
which
are
you
the
to
understand
competitive
forces
Gulf
Western
to
Europe
via
Suez is greater than from the
Gulf of Mexico to
Europe,
that the
and
present emergency
around the Cape of Good
route
Hope is
5,000 miles longer than the
route!
ing,
With
shipping rates
Suez
soar¬
5,000-mile longer haul, and
of 40 to 45%, or some
barrel a day, in Middle
East production, higher
prices due
a
decline
a
1,700,000
to cost and
supply factors
are
in¬
of all
con¬
of Western
Europe's normal oil requirements.
European
Industry
Middle Eastern
Oil
Western European
industry de¬
pends on Middle Eastern oii to a
much
greater extent than is
gen¬
erally
realized. The ratio of oil
consumption to total energy util¬
ized
in
1955
ranged
from
9%
for
Germany
through 13% for the
United Kingdom to 44% for Swe¬
den, and the ratios have undoubt¬
edly risen since then.
But
the
importance of oil to European in¬
dustry is considerably greater than
these
percentages
indicate,
as
it
powers the newer and more mod¬
ern
plants, i.e., the low-cost
pro¬
ducers.
In
jome
addition
to
the
500,000 barrels
a
shortage of
day. in the
and
other
com¬
through the
inflationary. Gaso¬
be
came
line rationing, which has become
widespread in Europe, has re¬
duced
the
biles.
This,
demand
in
for
turn,
automo¬
affects
the
industries which supply the auto¬
mobile manufacturers.
Other in¬
dustries which depend on
gasoline,
such
trucking,
as
established
factories
and
newly
which
gen¬
erally require oil for their opera¬
tions, are also adversely affected.
The
resulting decline in business
activity increases the ranks of the
unemployed; and even a moderate
rise in unemployment reduces the
inflationary pressures which have
plagued
all
the
countries
of
Europe in recent years. Putting
it
i*
other
words, with the oil
reduced
and
with
the
necessity of economizing on
supply
is
it
power,
demand
inevitable
for
all
kinds
that
of
the
durable
War II
the
economies
of
the
various
countries, is the fact that
part
of
the
a
large
Hemisphere
Western
oil must be paid for in dollars. As
market
for which the
—
Europe has been
will
con¬
be
materially re7
This, in turn, will reduce
—
duced.
the
goods
in
demand
for
of the
revenues
credit
the
and
governments.
>
a
result, a dollar shortage again
threatens the
stability of some of
the leading European
currencies,
as
you
steps
can
from
see
which
are
the
being
drastic
taken
to
protect them.
On
over-all
an
on
Europe
basis, it is clear
that the boom in Europe has been
The shortage of dollars,
the shortage of oil, the
shortage of
kets, make
In
a
overseas mar¬
slowdown inevitable.
effort
to help meet the
shipping shortage, the United
an
(2) Imports will be under
oil, next to food, is
important
import in
European countries, it is obvious
that they will do their best to
the
most
from
the
same
time,
erly known
reserve
as
fleet.
tankers
out
more prop¬
the national defense
In
addition
to
the
nearly
companies
release of
have
more
50
steamship
applied for the
than
200
regular
ships to haul grain, coal, and other
government-sponsored cargoes to
Europe.
,
In
an
effort to
pact of the
cushion
dollar
the
im¬
shortage, Eng¬
land took several important
steps.
She arranged to call on her full
quota of $1,300,000,000 in the In¬
ternational Monetary Fund, and
immediately drew down $561 mil¬
lion of the amount.
a
She arranged
$50Q-million line of credit with
the
e.,
to
At the
support
gold and dollar
possible, they will make
effort to sell more goods to
every
the
United
But
this is
as
States
and
Canada.
easily attempted
accomplished.
In recent
than
years,
their
continuously
exports
it
is
in
to
indeed
follows
more
more
all European countries have
tried
but
reserves
as
It
tankers
i.
area;
order
their
justments
18
in
much
releasing at least
fleet,"
imports, particularly
dollar
United States and Canada.
States Maritime Administration is
of the ' mothball
pres¬
Since
sure.
curtail other
Impact of the Crisis
factured products to
there remains
deficit of 15 to 20%
on
oil
on
will
of
fering taxpayers!),
Depends
effect
canal
will
pressures
although the immedi¬
siderably. broadened since World
certain
raw
materials, and .the
shortage of shipping space, includ¬
ing cargo space to carry manu¬
Western
Inflationary
Even more important than the
higher prices, from the standpoint
cerned, particularly the American
oil industry and our
government
(to say nothing of our long-suf¬
a
these
consumer
blighted.
Despite heroic efforts
fashion,
summary
evitable.
normal
transportation facilities for mov¬
ing that oil from the Middle East
will
some
Persian
unfolding in the
been quite slug¬
like
sound
It's
at work if you will keep
in mind that the distance from the
nothing of its political dan¬
statement,
question
a
tage
It
capital
ger, probably equals that of any
other happening of our time. This
may
(1)
ate
demand!
gish and of little consequence, al¬
though its economic significance,
to say
In
be reduced,
just the old problem of supply and
heavy and continuing impact
such developments on our econ¬
of
Europe warrant specific anal¬
are:
industry's taking advan¬
Europe's extremity, as
some
the
Syria
Time came, of
course, when in all conscience the utter
recklessness of earlier postwar
years had to be at least
modified. During the
past year or two, a more rational
management of credit and the like has been in effect. Ttfe
it—
of
speak
have at hand a red-hot
international development which
of
war.
Canada to
Dec.
on
ysis.
supply of oil, Western European
industry has the problem of higher
prices.
Middle East has
this.
of
speak
you
will
you
The
Nov/,
to
situation
million
loans
modities which
When
of the oil
both
The Facts
and
Certain aspects of the impact of
Suez developments on West¬
be kind!
markets.
case.
$100
States
the payment of more than
the
Developments and
Our Money, Capital Markets
certain of is that
the current situation. The truth
is, so it seems to us, that,
all things considered, we
may be thankful that prices are
.
World
convenient
they have not been arbi¬
trary—or they could not have been made to "stick" in a
competitive economy. They seem to us to be precisely
United
ern
and
probably effective defense of a course the labor
monopoly is determined to follow. We are not prepared to
express any opinion as to whether all price increases that
have taken place have
really been "forced" upon industry.
ices, including, of course, oil. (The
interest
rate
is
4 \z %,
payable
semi-annually!)
She also asked
Accentuates Economic Weaknesses
Meany about
going at top speed, but
widely made by politicians and
so
.
Continued from first page
We do not agree by
any means with Mr.
what is needed to
keep industry
his
ington, available for the purchase
United States goods and serv¬
of
the
particularly futile
simple
wages.
obvious fact that the President
by the Federal Re¬
Now, of course, in a situation like
merely to call on business and labor to
of
employment
buying, and hence more
higher
creation
the Export-Import Bank of Wash¬
cancel
with the assertion that maintenance of full
this year requires more consumer
income and
credit
authorities.
Futile Demand
Manufacturers, mean¬
while let it be known that, in its
opinion, businessmen
have had no choice but to raise
prices since higher wages
without corresponding increase in
productivity has so
raised costs that profit
margins are no longer satisfactory.
Then came Mr.
Meany, President of the American Federa¬
tion of Labor and
Congress of Industrial Organizations,
consumer
1956
be expected to exercise
can
Association
in
restricted
more
serve
effective, voluntary anti-inflationary restraints."
The
21.9
to
(337 other
reporting centers). Once
inflationary fires get out of control they are not easily
extinguished by such programs as higher discount rates
'
Thursday, February 14, 1957
w.
dollar
slow
a
that the
will
the
increase
to
the
necessary
have
to
be
curtailment
ports than in the
area,
process.
increase
ad¬
made
of
of
im¬
ex¬
ports.
(3) Gold and dollar
reserves
will decrease, despite the strenu¬
ous
efforts which will be made
to
protect
them.
Moreover, in
Britain, for example, the need for
even tighter
foreign exchange
control
will
further
postpone
the
day of free convertibility of ster¬
ling into dollars.
Similar dollar
exchange difficulties will plague
most
of
the
other
countries
of
Europe.
(4) More government control Is
inej/itoble.:Tightened foreign ex-u
»
Number 5612
Volume 185
.
The Commercial ajid Financial Chronicle
.
.
change control, with its licensing tth^'.-Kremlinr-.^re-^agaj^.-iwaghig.
further
will
opments? other, than"thevMiddle
restrictions, Putting it more bluntly,:we have East crisis will contribute to this.)
the power, to help, our allies to protect our
(4) The.life expectation of the
and
requirements
increase
governments over investment of ijiore than $60 bilimports; and this will certainly lion —since 19l(> alone — in their
economic security - and military
of the European
hurt international trade.
Public
boom has been shortened,- and its
end has become more certain,
. (5)
The equity market, despite
(
strength. NoyfcJ&e new military:- notable exceptions, has been made
economic aid pfogram for the more vulnerable,
hastened. The economic crisis set Middle East, calM for the expenr(6) The bond market will be
in motion by Middle Eastern de- diture
of stilh^more American the "residuary legatee" of these
velopments practically assures the money in that part of the world! .developments,
Pacific Gas & Electric Co.
market has been
common
,
adoption of the proposal for the
integration of France, West Ger-
Utility Securities
By OWEN ELY
(5) Integration of Free Europe
into'a
27
(799)
Pacific Gas & Electric
is
the
second
operating
Company
largest electric-gas
with revenues
cline
in
27c
share,
utility,
; While the direct impact of these
Now, in closing, one final comdevelopments pn our standard of ment lest you think that these tor a.rec®nt 12 months penod apmany, Italy, Belgium, the Nether- living defies .measurement, there Middle
E a s t e r n developments proximating $465 million—a gain
lands and Luxembourg into a are many evidences that it is in- have been magnified beyond their.
aPout
+v°ver *"e preylou®
"common market," with immedi- deed heavy. To use but one indi- economic importance. For further pen<Kl*
* \
^
current rate of
ate reduction, and ultimate elimi- cation, the average increase of proof of our vital interest, let us mcrease it looks as though the
nation, of tariffs. Even Britain 29 cents a barrel in the price of take a look at the Middle East £omp^y mig"*
y oyern)ay be forced to join in a wider crude oil, if applied to our entire itself.
zone of limited free trade through
domestic
consumption
of
nine
• As you know, oil is the hfeblood
1 «■
J, venu .s OI **
^11"r.rl
partial "integration"
with
the million barrels a day, will cost of our modern industrial
and
Fa11?
6%. Pacific
group.
As selected preferential consumers $2,610,p00 each day, or s Od a 1 economy. Unfortunately, ras
J1,s reveP^ecS
treatment is the heart of the idea, close to $1 billidn for the year, without Middle Eastern produc- mcreasea-190% since 1945 while
and
we
are
not members,
the even if the additional mark-up in tion there just isn't enough oil in ,on _lson s galned |^%*
common market, too regardless of
the manufacturing and distribu- the Free World to meet our needs.
Pacific Gas & Electric furnishes
any beneficial long-run effects, is
tion process ^disregarded. ,
But the known oil reserves of the electricity and gas throughout
bound td bring further pressure
Careful weighing of all these Middle East were in excess of 150 most of northern and central Cai*
on
the 25%, or some $4 billion, factors forces the conclusion that - billion barrels at the end of 1956. ifornia, an area with an estimated
of our exports going to Southern the
Middle
East
developments Moreover, and even more signifi- population of 6,250,000. The comand Western Europe.
will have a much greater impact cant, the know reserves increased Pany on Sept. 30, 1956 had 1,736,As this analysis indicates, the on American business in 1957
251vJ>ill/ion barrt!s 4u?ln? thf year*
pro
earnings
forma
works
out
capitalization
as
of
refunding mortgage bonds,
and
was as follows:
Millions
%
47
rl"ent^^v°enues' of^S^'n^mon
.
at
Oct. 31, adjusted to reflect the
recent sale-of $35 million first
•
_
a
19
Common stock equity
(17,069,000 shs.)____
622
34
$1,835
100
•
,
III
The
been
company's
earnings have
during the
the low
on
side
post-war period from a regulatory
point of view.
The per, cent
earned on invested capital (as re.
.
,
,
po_ed ,by Stairdhrd & ^Poor's)
fn°1949 a^wWch^af th°A S
Need more be said to demon-,322 gas customers, about 88% of dividend v n which year the $2
was covered by only a
centuated the economic as well as mists have anticipated in their strate the vital importance to the the latter were also electric cussmall amount).
The ratio grad¬
the political -weakness of Great forecasts. In sjiort, economic deof developments in
°
electric, 34 % gas and 1 % water ually rose until 5.6% was earned
Britain and Free Europe. Inevi- velopments in the rest of the tlie Middle East?
in the 12 months ended
and steam.
Middle
crisis
Eastern
has
ac?-
tably, the standard of living will
be lowered. Inevitably, the level
of
business
activity
will
be
forced down. Inevitably, the over¬
all
effect
the
on
economies
of
than most executives and
econo-
world
end-of
our
it
will
sooner
as
Europe will be deflationary.
hastening
are
bqom; and it
come-to
than
was
looks
an
end
expected
four.^eekSvago*
UIaa
late
Posts Announced
* * ** —»* f-
Appointment to various NASD
developments
of world
economy has
on our
committees
was
,
Sept. 30,
1956, but with the higher cost of
it is probably
now
in
a
The company owns and operates
13
steam generating plants and
much
as
announced
fuel
downtrend.
58 hydro plants.
Dependable ca¬
pacity last
year
approximated
Common
the
Although
ing
volume
total
by
Moore
Impact
agricultural products, and manufactured
goods will necessarily
decline.
Moreover, the uncertainarising out of the crisis will
undoubtedly have a considerable
ties
impact
business.
As
Ameri¬
on
no
one
knows
of
Middle
Developments
increase in oil and coal shipments,
exports of other raw materials,
psychological
through
of
exports will go up because of the
can
fashion
professorial
Eastern
Our
on
Money Market
Middle
developments,
on gold
dollar balances in
of materials, also have
portant
influence
Jong the difficulties will last, policies of
to be
the European
on
spirit
a
of
be
whether
caution,
in
automobile, a. house,
new plant and equipment must
expected.
buying
or
economies,
an
Any such reappraisal of the
business outlook will adversely
affect not only the plans of man-
for expansion, but also
attitude of consumer?. Clearly,
agemertt
.
the
a
decline
in
of
exports
certain
tvpes of manufactured goods from
the
United States, particularly if
accompanied by an increase in
caught
some
with demand
up
a
.Edward H
im-
very
fering from overprpdMCtion-TflWill
have a disproportionately adverse
effect
on.
the
.
level
of
business
activity, on employment, and on
the margin of profits.
These devglopments will,, in turn, bring
and information.
only
to
.
n
buted
increase
an
While
of
the
^and
cdmp'amts
.
on
'psvcholo'^i'cal influence
adverse
an
Christ-
on
tradc.
they were also fully
aware of the depressing influence
worjd developments wouM have
rnss
on our economy.
Clearlv. they did
not wJint tof take any
wpuld
increase
action which
that
threat
~
four communrties.
Dur.Y
ing the 12 months ended Sept. 30,:
1956 about 68% of the company^
supply was out-of-state gas pur-
_eJPr„C„e_„°A?U^el":D5°^
2
oil
brin«*
further,
pressure
and,
.
we
assist
JiV^
it
rot,
%9%
a
p
j^Sds
at 14 4 toes
J
generating plants, and also raised
the cost of gas purchased from
certain California producers un-
The new partners are Frederick
Hunter Collins, Jr.,
of
N.gw
earning
Richmond,
national
business conduct and legislation,
Donald L. Patterson, Boettcher
& Co., Denver, national quotations.
Farl
F.
Waterman.
Farl
F.
Waterman
Co., Seattle, legislation and information.
Alexander
Yearley,
oil
used
oil
in
and
the
gas
is
an
company's
containing
fuel oil
Orleans,
and
Thomas
Cleaves
price escalator clauses. The com- Holmes, Jr., of Monroe,
pany estimates that if these price
j£r# Collins
President of Lonincreases' for-botl) oil a.nd gas. had'
ind Coliins'" Inc.ftoi i#52
der
The been
IV,
power.
in 1955-56
fuel
of
contracts
in
effect
during
the
12
|0
.
months ended Sept. 30, operating WeiL
legislation.
would have increased
by nearly $12 million while the
expenses
ramL9m
_
'
o*
Ringwood
wood, 111.
A
Chemical
Co,
Ring-
Middle East will decrease.
(3)
-
Capital
n
expenditures of
inHllcfrv
nthpr than
n;i
luan oii,
Prior to
rate schedules; if authorized, this
change in the rate* schedules will
****
ment house prior to being made
partner in ^ firm
and'Co., Minneapolis investment
tfiA
Konlroro
Dn'n»*
tA
oort*ir»o
IP
<1
in his
a
new
,
capacity, he will continue to have
charge of the Monroe office.
The
bankers.
^
u
Monroe, La., branch of the invest-
bril,es.
y
u
.
to the company, based
upon estimated sales for 1957, of
Research Department of J. M. Dain $6,920,000.
" '
revenue
admiU^as
Mr.Holmes, wpo has been mjgio
investment business since 1947,
was Resident Manager of jjhe
result in estimated added annual
graduate of the University of
beine
and
FriMirSh-a
iQ«i4
a3 a
,'
Howard
Friedrichs
«ncp'
Comnanv
^d
with
been
Labouisse
company
would have benefited partner he
by $2.3 million increased revenue r<»s<*n#Atiw
_
^
^954
Robinson-Humphrey Co., Atlanta,
Capital expenditures by Chicago, Mr. Szold was also forAmerican oil companies in the merly Secretary and head of the
we
to- maintain
seL
and
Orleans Stock Exchange,
ajinouncea by G. .Shelby Frfcdricfts,
a par*ner 111 t"e
Stringfellow,
cost
Mr.
previously ViceVice- ing
escalator
reached a
Mr. Szold
Szold was
was^previously
ing from
from the
the fuel
fuei oil
oH^escalator
billion^in 1956^ President a^d Treasurer of the clauses in certain of these gas
which
(2)
retain and W^terh ;Arnpr-
in- order
bran
Men
______
deiet Street, members of the New
The
—
election
to
of
seven
the
the
two?
number
of
^
partners m the firm. Others are
.
If this adjustment-is obtained,^Alvin.H. Howard, John
Prior to service in the the pro forma annual net increase bouisse, Walter H. Weil, Jr, E#ul
rjavy during World War II, in costs would be equivalent to
stron^'iinit^M fr^nt avainst Russia wiU
probably fall below their he was associated with Stein, Roe. about 8c a share on the common
and the Cold War- the lords of burrent level. (Of course, devel- & Farnham as a research analyst, stock; if not received, the deFurope
a
1937^52but^Ls
increased the. cost of
*
Joseph J. Muldownev, Fcott fr
Canada, and Latin America.
on
this country.
or
7
rr
As for the direct financial costs,
Whether,
dividemlrSS
A $2
chased from El Paso Natural Gas
Merrill
Foster,
G.
Seth SzoW Joins
JP.
ill-increase in the United States,
probably the lass said, the better.
r~u?t
industry,
record level of $5 5
currencies and, thus,
business activity in
»
price
^
wou'd
to
during
sinca
WUi UdS SUlCe
raised to $2 40
At ^
prlce around 49 the stock
.
depreciated
early. 1956 they
an estimated
increased
Howard,
Laboui?se, YriftdaPr..,r0,??WJVr»..,222
have'
might
which
cSlMarket
capital Market
*
of
Amen'ean products in terms of the
a
,
increase, they
the $3
barrier
With the aid*of
weather in
again
gas. $340 f0r 1956
supplement ,was
possibility of a further
i^^i^dle
Eastern
developments
Oiein, I\oe <x. rarnnani resulting from automatic rate ad(devaluation of some of. the lead- will have an even more basic imCHICAGO, 111.—Seth L. Szold iustments for gas and electricity.
mg European
currencies consti- pact, on our capital market than has joined Stein, Roe & Farnham, The company on Dec. 17, 1956,
tutes. a
further
e J e m e.n t
of on our monev market. To mention Chicago investment counselors, as filed an application-with the Caliweakness. Such devaluation but a few of the effects in 1957: an account executive, it has been fornia Public Utilities
Commiswould, at least temporarily, ra(1) Capital expenditures by our announced.
sion to remove the present ceilthe
rate
through
reaching $3.32,
Oil price increases
undoubtedly
(
^
Increase
but in 1955, with the
a
broke,
national business conduct.
Thomas
naturally npt
were
,
gnd
of
remained
'$2-$3 |pr
of
Lynph,, .Pierce, .Fenner 3c >B9?ne, ,important.factor in the. company's
unnecessary.
they
thus, ultimately, on to be reversed in the near future.
plans
of management for
capital (expansion,-and the plans.
tooact of Middle Eastern
ucts
benefit
Propane gas is disWb-
in
company's
earnings
range
many years,
cold
supplies during periods of peak
demand.
the
manufactured
gas,
used
Share
within
Nearly all the supply of gas is
being
l
the
Two Partners
the
Thn
34%.
tional figure of 2,751 kwh.
Howard H. Fitch,
empties and
™mn«onmerS
f0r PerSOnal COn"
sumptipn.
industrial, 14% agricultural and
exec-
Presumably
designed to
since the equity ratio
(which dropped from 32% in 1945
to 24.9% in 1949) is now
about
Hart
authorities, utive director, executive, finance, natural
our Reserve
the market price-of furthermore,
pressure op
Austin, Austin
Angeles, executive.
Wallace H, Fulton, NASD
credit
the
on
—--.and' did not Want fp hazard
industries are actually,.suf^-
residential, 20% commercial, 25%
were
of
Howard, Weil Admits
tight
has
industries
committee,
17,068,000.
care
growth,
about 33%
are
h^ye
discount rate for any son-McKendrick & Co., Minneap- Company
and
approximately
length of time, the discount rate, 0iiS> finance and information. 32% was California gas purchased
is, increased.
But this \yas pot
Francis M. Brooke, Jr., Brooke from others. The company's peak
done in December.- Instead, the ^ cG., Philadelphia, national busi- day sendout during the winter
NEW ORLEANS, La.
of 1955-56 was 1,486,800 Mcf, and
r-Admis¬
Reserve authorities, through onen ness conduct and legislation,
sion of
two
additional general
market purchases, reduced tue
Arthur
A. Christophel,
Reln- during the 12 months ended Sept.
partners
into
the
New Origans
30
total
sendout
(plus
company
-Hll- r*te until it was in line with boldt & Gardner, • St. Louis, nainvestment
securities
use) was 382,836,000 Mcf.
firm
the discount rate, and thus made tional business conduct
in
our
take
than fhc
^mmindful
of
Electric revenues
to
these increases
capacity.
*
Barret, Fitch,
North & Co., Kansas City, Mo.,
was taken bv most observers
as
finance and legislation.
a certain indication thai the disEdmond E. Hammond, Paine,
count rate would be boo?t«d from
Webber, Jackson & Curtis, Boston,
3%. Historically and traditionally, finance and legislation.
whenever the bill rate is higher.
Edward J. McKendrick. John-
imports. from Europe, coming; at
a time when productive capacity
most
was
000
5% sales to other utilities. Resir
dential' ra*es average about 2.74c
reserves
and
&
Parvin, San Antonio
Texas. per kwh vs. a national average of
the international money market executive,
2.64c.- Annual residential usage of
and their effect on the shortages
jo m, French. Blyth & Co., Los 2»616 kwh compares with a' naEastern
or.whether they will become even For example, in December, when
aggravated,
or
how -far the latest offering of Treasury
TPsrnhiruy thoir
mnart will
KMlo
+V.O +
reaching, their impact
will prove bills was sold to yield 3 2%, that
nrn\;P
Louisville,
Co.,
Other appointments as committee members follow*
jn addition to their effect
how
more
&
named chairman of the legislation
earnings
as the
result of reg¬
ular .emissions, of eOmrqpn stock
during each of the years 19471954
inclusive, and during the
postwar period the number of
shares has increased from 6,261,-
the board of governors, who also load was 4,025,000 kw, so that an
Such adverse economic devel¬ the use of the Middle East crisis is chairman of the executive com- ample
reserve
(including firm
opments
in - Great
Britain
and as an object lesson, let us attebipt ■ niitt.ee and a member of the fi- purchased power) is maintained,
Work is progressing, or will start
Europe are of great economic im¬ to evaluate its impact on bur nance committee.
portance to the United States. money and capital markets.
Dale
F.
Lunch,
Berwyn
T. soon, on 850,000 kw of additional
.
stock
been diluted
including 359,400
available from two new gen-*
4,673,000 kw,
fyahk L/ Rei&sner, fch&rrmanof er at lhg units. Last summers peak
been set forth in true and exhaust-
Economy
n
NASD Committee
if
as
that the impact
Now
Adverse Impact on the American
the
now
^
Westervelt
T
'
Friedrichs.
and
G
'
Shelbv
28
(800)
The Commercial and Financial
Chronicle
Continued
jrom first
selves what they need and what
they will buy and at what price,
they give people the satisfaction
page
The What, Why and When
01 Federal Reserve Policy
The mounting demand has come
from
variety of
a
ernmental
sources
well
as
—
private.
as
and credit as scarce, rela¬
tively, as the goods people want
to
buy with money and credit.
money
gov¬
The
This
ships
and
many
of the
missiles
require
that
initiative.
Such
Moreover,
these
free
market
ones
consistent
of
processes
pldce
the
only
private
the
Monetary
and
Timing
Fiscal
and
tools.
willing to
Treasury and the Federal Reserve
with those individuals who desire
money.
at
houses,
funds
household
durables. As a result, inflationary
pressures
have centered largely
in
metals
and
metal
products;
new
these
pressures
this
to
and
cars,
are
not
Index of
of real
by accepting instead
Pro¬
capac¬
ity levels and there has continued
a
substantial expansion of plant
capacity. This tremendous expan¬
sion has been superimposed upon
an economy that was
already us¬
ing many of its resources to the
full.
The resultant competition for
scarce
materials, labor and credit
caused the prices of all of
has
them to rise.
the
omy's
capacity
In
this
has
made
trustee
the
the
on
business
Specifically,
mercial banks
Even
eral
though
my
policy, it would be
naive to discuss the objectives of
monetary policy apart from those
of fiscal policy.
Fiscal policy, em¬
bracing as it does, debt manage¬
ment, Federal budgeting, and Fed¬
eral taxation, is
probably as potent
In helping to stabilize the econ¬
omy as is
monetary policy.
objectives
are
protecting
is
role
to
tive forces of the market.
decisions of
and
rowers
In this
individual
lenders
stand
the
pur¬
basis for
making the best
the economy's resources.
etary control
concern
currently of
to Britishers.
keep the
speed
without
capacity.
overstraining
Only thus
can
our
its
na¬
tion achieve economic
progress in
form of more jobs and more
the
goods combined
with
dollar of
a
stable
buying power. To do this,
continuous stream of transac¬
tions must be kept
running much
a
like
the
stream
of
delicate
of
traffic
on
touch
the
broadaxe.
general
described
The
In
re¬
or
power
a
path for future
generations
pro¬
vided the current economic
traffic
does not become snarled.
However, there is now pouring
into the road more
economic traf¬
fic than the
present road capacity
will permit to move
forward at
one time.
Too many
people want
many things too fast
—steel,
cement and labor. As a
nation we
too
are
can
trying to buy more goods than
be produced,
trying to spend
more
than
borrow
our
more
incomes, trying to
than
we
If
save.
we
should
succeed, the result can
only be higher prices, and
we
would suffer inflation
with its de¬
struction of savings and
its
...
to those dependent
injury
on
them.
The
to
stock
over
exercised
Board
market
credit
that
is
by the Federal Reserve
under
authority from the
This particular form
Congress.
of selective control
minister
because
is easy to ad¬
of
the
limited
number of those
affected, the selfgovernment imposed by the Ex¬
changes upon their members, and
the self-discipline of banks and
brokers in adhering to the Board's
regulations.
However, during the war many
nations, including
our
own,
adopted other forms of selective
control
over
critical
imports,
materials.
criticize
foods,
One
and
cannot
country for resorting to
such controls in emergencies, but
a
these selective controls
have
provided only
Even
swer.
when
limited,
was
they
to
an¬
supported by
partriotism their suc¬
war-time
cess
appear
partial
a
did
not
in the end
and
inflation.
prevent
avoid
inflation,
we
spending more than
through production.
In
economy,
we
do
this
must
we earn
a
free
by making
to
citizens, the purchasing power of
the monetary unit suffered even¬
loss
stop
anyhow.
that
me
it
is
with just
a
It
seems
or
clear
not possible to
little rationing,
a
mental
controls
tend
to
spread
until they cover most of the econ¬
It
and most citizens.
is little wonder,
therefore,
that countries began to shake off
harness of detailed control
government
markets
Since
were
such
viduals
to
as
soon
as
functioning
markets
enable
determine-
Board
of
even
though
action
had
to
risk
of
unsettling
government
and
have
in
discussed
terms
through
of
co¬
concerted
maximizing the
of
monetary
assistance
policies.
We
turn
now
for
free
of
fiscal
measures
more
less
and
than
such
upon
as
stabilizing
than that of monetary
Fiscal policies have a
direct
ence
do
immediate
of
disequilibrium
inventory accumulation
as
excessive
influ¬
po'licies
monetary
causes
and the
of
use
credit.
consumer
mortgage
or
Fiscal decisions,
since they are
necessarily long in
the making, may come at
It is
oc¬
to
improve
business
stability.
monetary authorities, the
fundamental problem of tim¬
to foresee changes in the
ing is
the
the
other
on business
activity. If the author¬
wait
until
the
figures
demonstrate beyond question that
further credit restraint or stimula¬
tion is needed, the action
may lose
its effectiveness, in whole or in
part.
But
the
perils
of
action
on
judgments in advance
confirmatory information are
obvious!
I Of
consumption and for herd
expansion
forced
prices
higher
higher.
Each rise in prices
increased 25%.
detail
what
rising
eco¬
monetary tools, open
market operations are
responsive
in
the
ing
day,
to
extreme.
Buying and sell¬
modified from day to
and even from hour to hour,
can
be
adapt
to
tightness of
and still
fluctuations
the
money
work in
in
the
markets,
the direction of
stability. Open market
operations, flowing from the in¬
structions of the
Open Market
Committee,
of
an
have
automobile
Discount
indi¬
responsive
the
operations
and
though discount
sensitivity
accelerator.
rate
even
changes
are
pounds
in
same
prices
1947
55
to
time*
cut
capita
per
the
from
68
pounds
in
words, it is to provide more jobs
and
more
goods combined with
By 1951, the increased produc¬
tion from the enlarged herd
began
employment at consist¬
ently high levels. In still shorter
economic
the
dollar
words
equilibrium
is
here
stable.
of growth as the
economy
eral
to maintain
It
is
attempting to im¬
rate
of
that
keep
up
expands
with
merely
the
to
competitive
Joneses, without careful market
analysis, or provision of the nec¬
essary financing is a contributor
to
unbalancing
credit
demand.
So
is
a
that
company
normal
working
dividends
uses
capital
to
or
up
to
its
pay
build
up inven¬
tories, or to postpone going to the
capital markets
and
then
finds
itself without funds to
pay taxes.
The problem is to secure bal¬
anced
high
steady economic growth at
levels. In the
employment
the
past
new
to
to
"catch
resorted
its
technology
and
then
breath."
the
to
tended
by
Or
it
has
has
use
of
breakdown
a
of the credit structure.
process
and
paused
excessive
followed
and-go
to
It has responded
new
resources
credit
has
economy
in spurts.
grow
This stop-
often
proved
costly in many ways—unemploy¬
ment, lost incomes, and the in¬
discriminate
tion.
The
injustices
Federal
of
infla¬
Reserve
seeks
to eliminate those imbalances that
caused
are
Stable
full
credit.
and
money
employment
growth
balance
capacity
between
produc¬
and
consumption.
story of the beef cat¬
industry furnishes an ex¬
recent
.spending and
consumption spending and of the
to
keep the two in balance
avoid booms and busts.
World
During
War
II, consumer income
rising while much consumer
was
spending including that for meat
was' limited by
rationing. When
the latter was discontinued after
World
it
II,
rose,
cattle,
and
became
Ranchers
the
price of
raising of beef
the
profitable.
more
expanded
many
the
did
so
cattle
"main
wanted
everyone
its price started to rise.
and
meat
As
War
their
herds,
including
newcomers,
street
cowboys,"
entered
business.
With
his
operation
the
of
the
cattle
business,
colleague Governor Shepardinterprets what happened as
my
son
follows:
size
A
will
calves
crop
saved
a
cow
per
year.
certain
for
of
just
Out
Others
Cows that cost $300
sumption, from the low level of
55 pounds per capita in 1951 to
pounds last year, that prices
83
have
finally stabilized and turned
after a most painful and
costly readjustment.
Production Ahead of Consumption
If
consumption
then
is to expand,
facilities must
productive
first
be
This
increased.
involves
saving,
which diverts resources
from
consumption.
When
the
economy
is
operating
at
full
capacity, neither investment nor
consumption
can
be
expanded
further
flow
simply
of
bank
money
credit.
by inflating the
with additional
Unless
capacity or
increased, addi¬
tional credit will only result in
the bidding up of prices. Until
recently, for example, the real
productivity
limit
ing
are
the amount of
on
that
might
for
need
market
better
so
in
much
homes,
demand,
hous¬
new
built
be
depended not
year
or
any
the
on
the
or
the
even
availability of financing, but on
the supply of men and materials
that
could
be
other
into
drawn
dential construction.
demands
With
resi¬
all
labor
for
the
and
building
materials impinging on
the market, easier financing facili¬
ties could only result, and in fact
did result, in increasing building
costs.
It
is
within
the
not
the
task,
is
nor
it
the Federal
Reserve to supply new savings for
investment in housing or in busi¬
ness plant and
equipment, or for
the financing of the construction
of
schools
power, of
and
roads.
Savings for
only come out
these purposes can
of current income that is not
spent
for
consumption,
because
only
through such saving are physical
of
resources
and
men
materials
released for investment.
Fed Takes Macro View
Federal
Reserve policies, even
properly attuned to the cash
holding
desires
of
the
public,
if
cannot
always assure continued
growth and stability. The main¬
tenance
the
of| equilibrium
requires
balancing of an in¬
delicate
tricate
and
structure
investment
multitude
of
master
goods
mind
the
assurance
of
consumption
involving
and
a great
services.
direct
can
smooth
with
functioning
of
this complex mechanism.
The
forces of the market and the price
system must be relied upon to
a
given
direct
many
money and of goods and of serv¬
ices into appropriate channels and
to keep them
moving. There are
of that
number
50%
so
must
replacements
breeding herd.
herd
herd
produce
the
risen
by one-half in
1951
No
understanding
of
had
fell
dropped as low as $100
by 1953. By now, these ruinously
low prices have so stimulated con¬
with
is
essentially a
of maintaining an appro¬
priate
tive
The
by
economic
accentuated
that
years
upward
growth.
The swings are accentuated
by
imprudent decisions. A manage¬
ment
in
steadily,
rate that the Fed¬
Reserve is
and
Prices
two
the next two.
is will¬
no
fixed
slide.
in
rate
pose
on
the economy, nor could
Federal Reserve policies
by them¬
selves
assure
the
attainment of
a
marketings
key
"sus¬
a
market and
consumer
prices started to break.-. By 1952,
widespread drought increased the
unless
The
are
"orderly,"
tain," and "consistently."
important to have as high
to
to reach the
of stable buying
power,
implies that there can be
which
a
,
dollar
a
no
for
also
are
sensitive,
consumption
1951,
At the
consumer
sustain
and
the
1949 through 1951 com¬
demands for animals for
population
need
ities
three
or
biological
current
examine in
perative if the anticipated results
unduly by
the time lag between
changes in
monetary policy and their effect
increased
stimulated new producers to enter
the field, and the cow
between investment
reduced
the
and
tle
be
of
slaughtering.
From
and
cellent example of the distinction
to
because
peting
other.
business climate in order to make
not
in
age
for
Progress That Is
more
result
until after two
time requirement for
reproduction
and for growth to a
profitable
Open
compensatory action before the
figures actually prove its neces¬
sity. Promptness of action is im¬
are
not
shrinkage that was masked
and offset by the higher demand
for breeding stock.
&
process
For
most
will
years
operations
purpose to
my
somewhat
just the
time
wrong
again.
them¬
Each affects
rapidly
timing. Timing difficulties
to hamper the effectiveness
proper
economic
this
by
Banks, with
another aspect of coordination:
based
to
high
unpropitious time
for
we
fiscal
and
of
of private
omy
prevent
far
action
Despite the policing of the multi¬
and
To
So
tude of enterprises and
tual
plus
the
The
some
or
in ef¬
now
of
an
market
measures.
selective
one
latter now include
not only the
traditional
widows
and
school
teachers whose incomes
are fixed,
but the millions of
wage earners
at
are
little price and wage control.
Once embarked upon, such govern¬
citizens building up
pension
rights, other fringe
benefits, and
life insurance
equities.
taken
tools
there
crowded
highway. This highway
stretches
ahead
as
an
inviting
be
tend
addition
as
only
been
chisel
controls,
The
private securities.
have the
the
of
13%.
mon¬
fect in this country is the control
economy running at high
December,
despite
their
The first two
Reserve
in
order
finement.
of
1956
the Treasury in re¬
financing its maturing obligations
the
have
Moreover, the enlarged breeding
herd
on
condi¬
market.
discount
reinforces
but there is
of
problem for
These
of
credit
ing and able
fore¬
Federal Reserve action,
necessary
as
it was, made a more difficult
quirements.
the
increase
November
listed
those
The statement of
objectives may
foe expressed in another
way: to
in
ordination
in
in¬
McGraw-Hill
additions
ebullience
approval
mutual
direct.
Why Money Has Been Tight
of
be
demand for loans caused
three: open market operations, re¬
discount
rates
and
reserve
re¬
plane; the last, the cruder
much
use
to
the Treasury faced a
refunding in
December of over $12 billion. The
the well-known
are
these
is
the
Monetary Instruments
The last
these
bor¬
as
of
reflections
Governors, to raise their discount
rates
time the allocation
the
1955
over
Sep¬
uncertainties
sober
capital
Federal
the
ac¬
supply of money
credit is left to the competi¬
way
the
fluctuating
chasing power of the monetary
unit, and external, by keeping
international payments in balance.
of
in
expand
the
it reduces the number
available for current consumption.
Balanced
uncer¬
late
seemed
overall
an
in
these
the
when
seasonal
com¬
in
of
return
regu¬
economy.
same
dicated
that bank credit
so
That
survey
plans
products.
economic
illness
businessmen
cast
and
stemming from President
tember.
other.
The tools used for general
(2)
To maintain the financial
equilibrium of the economy, both
by
the
the
came
dissolved
of
private
the available
and
two-fold:
consistently high levels.
Internal,
of
materials
Eisenhower's
Reserve
or
on
and
the
At the
Their
(1) To foster orderly economic
growth and sustain employment at
Then
real
available to
with
of
needs
Reserve
its
reserves
cordance
topic is Fed¬
hand
pressure
contract
may
Monetary and
dustrial
total
one
the
and
Economic
was
and
of
loans, by rising
prices,
by business plant
expansion, by a scarcity of steel,
cement, and glass, and by increas¬
ing prices of many important in¬
supply of
money and credit.
Its obligation
as trustee is to carry on its work
free from partisan political pres¬
sure
discount rate
stock
Congress
Federal
the
over
late the
Fiscal Policy
the
country,
and
The Objectives of
produce
supply-demand
the
in
tainties
those of mid-1955
by about 5Vz %
prices by about 3 %.
to
the
both
orders
goods.
By the end of 1956,
wholesale prices had pushed above
consumer
price rise
a
used to
money
the time
for
posed
recognition
a
creased,
rate
November, 1955.
For nomic
progress means. I have de¬
some
months, business confidence fined its
goal as follows: to foster
had been mounting. It was evi¬
orderly economic growth and to
denced by the rise of industrial
buy these
goods. We do this through gov¬
ernmental supervision of the total
supply of money and credit, to
keep it in harmony with tne econ¬
are
problem
raised
goods is therefore avoided
for
or near
the
set aside and with them
are
but
Industrial
are
of the demands for goods.
General inflation in the prices
During this boom, the Federal
duction has been at
the market
some
world wide.
Reserve
Coordination of monetary policy
with fiscal policy is not easy. Take
pay the higher price of
The weaker demands for
confined
alone,
country
in
in
each
is allocated
place to those borrowers who
Discount
closely related functionally—
so
closely related in fact, that
they are basically supplemental
of
Credit
goods.
to
of
are
Policies
in the building and equipping of
plants for private industry. Cor¬
porations, in turn, have competed
of
in
market
enterprise system.
Coordination
time
levels
significant change has
a
tions
the
are
with
than
price
signal
curred
unwise.
rather
the
changes
to
in
Thursday, February 14, 1957
..
the, part of the Reserve System production
decisions
materials used
same
rates.
spending
be
time
changes
market
knowledge,
own
and
from
to
that
the
that
means
their
made
adjust
freedom is important even if many
price of
money—the interest rate—goes up
government has had to buy planes,
„
of
using
judgment
only
.
in
are
be
the
saved
expansion. The rest
available for consumption.
calf
are
If the
rate cf herd expansion is to be in¬
and
bound
to
hindrances
time
to
As
I
attract
be
and
the
flows
obstructions
slowdowns
of
and
from
time.
Federal
primarily
mentioned
Reserve
with
earlier,
the
is
concerned
total
production
l
185
Number
5612
...
The Commercial and Financial Chronicle
and total incomes In the
economy,
and * unly
indirectly with com-
credit,
mortgage
on
because of the
and
partly
ponent parts. Orderly growth for
the economy as a whole does not
and local government construction
and cannot mean uniform rates of
is
growth
of its relatively high sensitivity to
the cost of borrowing. Some long-
for
all
simul-
industries
taneously. Improved living standards grow out of new technology
and
that
resources
generate
buyers to
also
time
mortgage terms.
this
in
First Boston
Group
Phillips
Petroleum Offering
sensitivity oi; hpme
business
State
Underwrite
category, because
The
commitments, such
Phillips
.
Petroleum
..
.
,
Securities Salesman's
By JOHN BUTTON
Co.
is
u
°*fermg lts common stockholders
demands
and
shift
production also
be
influenced
by
interest ri&hts to subscribe for $171,720,200
away
from
older
industries, costs. In the
tight credit markets of 41/4 % convertible subordinated
Among individual industries, there 0f 1956 some of these weaker de- debentures, due Feb. 15, 1987, at
is a
continual process of birth,
ma^7»n
Z
~m-
JL •
.ul
l
*
'
_
growth, and
evolutionary
'
t*
decline.
new
*•
¥_
From
process
Such
mg.
changes
emerges
industrial
in
should
be
facilitated
^tber
.than obstructed so that
production can grow fastest in the
orferesources
Mob liH
to
healtev
a
and
1
-j
ji
growtn
.
,1
in
tne
markets
money
tional
funds,
sufficient
mand<
growth
these
meet
a
in
flowed
attracted
but
to
As
the
resultj
total
into
addi-
were
not
total
de-
of
the
most
output
in 1956
investment,
business
definitely.
economy
as
w/!°
1S+ c°?]?lstant .wV:n .*;on":
fvnp? of ShnH Ain
U?„
SrnlnfSinV
QPt
hVTvL in nriLtrHani"
PYnancinn
in
in,fp«t'
mpnt Qnandintf
hi nffJ?hv
Heriina
in
rpoidpnfial
rn^ivnn
tinnLtr wZpnMn rWI
•
Ml
\ C7
t-V*
/\«
K
r* r%n
©1
A+
r*
WMt
tant and desirable
these needs
as
stand as latent supports for
are,
v\
£a<rb ? shares of common stock
held of record at the close of business on Feb1957 •
A
headed
group
Boston
Corp.
The
by
will
unsubscribed
First
purchase
debentures
any
of
?he°l§s
in developing
a clientele
and
medium
middle-bracket
sized
investment
have
self
t6
accounts
Feb.
on
is
to
and
pure
simple,
with
stacked
against
worried
individuals,
these
odds
the
foolish
and
an
understanding with yourwell as with your client as
as
just what
you
investment
his available funds.
Challenging Situation
reasonably
can
the accomplish in the
at
termination of the offer
Let
of
look at
us
If
in
could
you
mind
keep this picture
if
and
you
the
in
are
investment business you know that
challenging andT
the situati0" realistically.
the situation is
nous.
The public just does not
know
what they
with their
know what
they can
can do
1
through
Feb.
15,
1967,
at
$55 a firm that serves the gcilClal
general savings.
They don'tv know what
vvaxmv
through Feb. 15, 1972, and at in- public in your area. You may con- they can achieve (under careful
creasing prices thereafter. They fine your activities to the solici- and conservative guidance and diwill also be redeemable at the tation of business from banks and rection) and what they cannot
option of the company at 10414% institutions and possibly a limited accomplish. You can't make peofor those redeemed prior to Feb. number of large accounts. If so, P*e rich if they have oply $25,000
15, 1982, and at declining prices what I am suggesting here does to invest. You can help them go
thereafter. The debentures are not apply. But if you have a broke though if you try and speeentitled to an annual sinking fund retail clientele of individual in- ulate with this fund on a foolcommencing in 1968 sufficient to vestors you may have a few large hardy basis. You can help a man
retire not less than 93% of the clients, and the rest of your busi- achieve a reasonable goal.
You
issue prior to maturity.
ness probably generates from
a can produce more income than 3%
The net proceeds from the sale cross section of hundreds of indi- for a retired couple who needs
of the debentures will be used in vidual investor^ and speculators, income now. And you can do this
part to repay bank loans totaling There will also be a number of without putting their capital at
$86,000,000, due in 1958, and the one or two-time transactions with great risk. You can do it over a
remainder will be added to the people
during the year which Period of years with their help,
company's general funds to be come along as a matter of course, understanding and cooperation,
vertible into
In this
situation, the
deferred
viuo
oiiuauuu,
me
ucicucu
bousing and school needs, impor-
Know Your Customer's Limitations
As Well As His Objectives
thetbafYl $J°°
^interested
"Pal
a rate that 25' 195?'
^ exPecte<J to Persist ln"
The debentures will be
to
orderly economic growth.
qi
"1
by the strong ones originating in
business
plant expansion. Tight
flsentfai w*lch e*panded at
is
economy
..ul
oxaoie
those for utility expansion, may
.M.lu.
this
growth in total output, in productivity, and in the standard Of livstructure
as
■
Volume
con-
stock at $50
common
•
Assume you are a conscientious
renresentirifT
salesman of securities
securities representing
a
±11111
Uiat
Del
Vt&
uic
the economy until such time as
business
investment
slackens,
when that time .comes, it may be
of critical importance that such
latent demands be available. Still
other developments, such as the
can
hp offspf hv inwpr invp^tmpnt
Federal highway program or anin auto manufacturing This is the otber boom
in expenditures for
phenomenon
of
the
past
half consumer durables, may support
decade that has been described as tbe
economy. All of these dea
rolling
adjustment.
Different mands contribute to the reserves
types of demand take turns acting essential for maintaining stable
as the driving force in
the econ- growth. In brief, then, the Fedomy, and at all times total demand era* Reserve objective is to help
is
more
or
less
equal to total maintain stable levels of total de- available for capital expenditures
The larger proportion of your
Y°u can sell a man speculative
capacity.
mand in the face of continuing and other corporate purposes. It business, however, will come from stocks that have a reasonable poInflation Types
fluctuations in its different seg- is anticipated that estimated 1957 many smaller investors, retired tential for capital gain if yot>
T,
ments. The total demand target capital expenditures will be cov- people, younger people trying to know, and he knows, the risk ini
e are.actually two types101 -ls determined by the capacity of ered
by
cash
generated
from save for the
ho
an
ran
a
.
future,
finpTanH fhPi^ th^nmmSitinn the economy and
mnnrhnSi
SnmS growth trend line
speculators
volved and whether
he is in
or not
along a operations after dividends and the who want to try for capital gain a position to assume it. But II
established by remainder of the proceeds from on a venture basis, and many y°u are going to sell stocks to
well a*SmmpLnXSmai'
the economy itselfthe sale of the debentures.
others who own some securities People that have no plan and no
state and local
for shares of the'
That we must rely on rolling
Phillips Petroleum Co., ninth which
they have acquired for understanding of what they should
total credit and goods available adjustments among the segments largest oil company in the coun- some reason, but probably have buy, row'much and
buying it, you are going theyare^
in
to makethe economy.
To the extent of the economy to produce sta- try, is a diversified, integrated forgotten what it was.
moves
as
that
demand
slackens
in
of
one
these sectors, there can be an increased flow to other sectors This
is
the
oility out of instability creates enterprise engaging in virtually
Problems of its own. Mr. Stephen every phase of petroleum indusTaylor
the
of
Board's
staff
has
try
operations
and
some
Most People Need
related
many
a
Hard, Head-on
commissions
(and
large
but
some
sooner
Exposure to Reality
in
or
ones)
later
possibly
you
are
going to be placed
position that will be embar-
a
observed that although some in- petrochemical activities in the
0ne
of the most
constructive r„„sin„ with th„p
stability within the demand struc- United States. It also operates oil things you can do for anyone is
f '=
"
people.
On the other hand, there is a
ture is inevitable the uneven and gas producing properties in t0 sit down with them and have
Let s face it-you can obtem
mutual
interdependence of de- competitive strength of different Canada and Venezuela.
a
heart to heart talk with them »% today if you aie careful—you
mands:
high consumer demand segments makes the variation in
The company has paid regular about
their
financial
planning
generates
high business invest- tbe total wider than may be nec- quarterly dividends on its com- both for the present and the fustocks^and _n^you buy tnem at
ment
demand, and business in- e^ary- Moreover, the turns of the mon stock since 1921 with the ture. Enough cannot be said ree 5lg *
!1?1S
n
vestment
generates
income
to wheel expose us to risks of cumu- exception of the years 1931, 1932 garding the tragic waste of assets
fa?,y' 2?1 you ^ 5
stimulate added consumer demand.
Native reactions degenerating into and 1933. During 1956, dividends and hard earned savings that
r
And, more to the point, a drop recessions.
of 37% cents a share (adjusted for takes place both in good times
y
in
investment demand, whether
'
the
two-for-one
stock
split in and in bad by people who have
Teswt tne ^wings ot^^iear
from
an
excess
of
investment
Route
June,. 1956, were paid on March 1 never been brought face to face a d optimism that come to some
relative to consumption in some
The solution is not to be found ancj June 1, and dividends of 42% with what then
want *from their Pe°Ple w"^n tney see the marKet
j
that
rolling
we
sustained
growth
have been observing.
,
_
i
.
important
area
"adequate
of
or
from
financing,
the
lack
tend
can
to
drag down consumer demand
by reducing incomes. This is the
cumuiative
to
response
move-
mpnt<j
in individual
indiviriiinl industries
inriii<strip« that
ments in
tnat
gives
to
rise
booms
sions
and
depres-
*
'
4
Stabilizing Influences
With
witn the
tne chance
cnance lor
for such
sucn
lative
responses
what
cumucumu
present,
ever
sustain the continuous
may
—.
......
_
-
the
future?
possibilities.
of
time
tions.
There
are
tn making free markets work.
large sten toward this end is
A
ment
boom
was
a
response
to the
philhps
'tpfl t't
i
j
i
x
Petroleum
nf
„
re-
ft71 nft0
to
are;
If free markets
combined!-with"sound monesocial
gains from
One of these consists :*:my depend
reacthe decision
extraordinary
consumer
spending of 19o5 that
helped to produce the 1956 rise in
capital investment. If this invest-
n
1956
and school bonds.
several j term
the
.
P01^601 tptal intome ^ V^U'U';'U"U
remove
institutional
rigidities
a
? ' £??•
such as legal
limitations on in-' equal
^
per share. This
ter^t rates
rate^ nWaWe on mortgages
terrst
LWlth, t0taJ 'nCOme °l
pa^nie on mortgages ^660,405,000 and net income of
labor
and
the
resort
sidies,
same
to
to free
markets
government
guarantees
and
sub-
or
«fi1 9ft
ner
period of 1955.
W'frk
N
shqre
for
H
the'consumption
off.
tapered
investment
This
r'.
and
added
to
the
staff of Norman F. Dacey & Asso-
ciates, 114 State Street.
second
consists
consump-
expand.
of
not
the
uie
forget
ket.
The
greater
shelter
credit
tieuii,
,
the free
influence
ernment,
demands,
comes
the
by
of
Walston Adds
gov-
situation
of
marginal
status
but
in
stand
so
those
not
Staff
to
protected.
In
a
free society, it
is axiomatic that not everyone can
be sheltered.
example
of
tiiis
type
Robbins
with
demand, partly because of the
relatively
fixed
yields
available
he
It is understandable,
feature
system.
of
upon
our
as
the
private
60
3eC
'V6 'S L°"g n"™, cafltal 8aln.
make sure he understands why and
n0
knows wnat ne is doing. Lret down
of age
years
limitoH
L
b
,
invp«;tinent
and
cases,
like
just
them,
securities
f
'
men
day.
every
working
wutAiu,
wome
who need to invest
miHHip-nePd
rnmuiu-d5cu
a
sma
increase their income now
,
or
later
t
is Hnin?
ttet down
to cases where you can with people and become an advisor to
them
This iheans kboWin^ them"
.
well enough to become their
fjdanf
aio0
and
beina
able
con-
to
paant ana als® Pemg aDie 10
the
them
they
can
kind
of program
<tell
that
expect will
income either
reasonably
them
gjve
now
better
jater.
or
hronsht
arp
ar«
f
knnwc what hP
several
thnnsanH
Thpr„
the?e
and
are
retired
Conclusion
It
is
possible that among your
acCounts you may have many peo^ wjlQ woujd welcome a confer¬
ence
on
their
entire
situation
the
of from $50,000 upward.
are
re¬
f
their financial plans for
future Times
present and the future.
garding
individuals with small nest eggs
1li
vpops
unsettled
central
enterprise
has
Walston
David
uavxa
Conn.
become
&
very
a
great deal
the
and
future
is
Co.,
Inc.,
w.
Ill
Jr.
and
who
of trepidation.
is
Conn.—Samuel
with
Income
Inc., 152 Temple Street.
uciucnuuua
^
ge^ there. There IS
in this
o^porlunl
opportunity
u^ullum
securities
men
who know
are
to the future with
The
how to call a spade a spade and
up
and the terrific injustice
make it stick!
With Cruttenden, Podesta
'
*
penalizing
income tax, have
these people to such a
pass that many of them are trying
to solve their problem by gam-
is
bling in real-estate syndicates, oil
podesta & Co., 209
of the
(Special to The Financial Chronicle)
brought
HAVEN,
Tator,
Funds,
little
d
„
who have
standards thev have had to
connected
With Income Funds
NEW
some
in
or more a year,
_
looked
were
looking ahead
Feaid Street,
therefore, that free markets should
be
hfJ(,
,1P
t9enftft
«,ith
saved
(Special to The Financial Chronicle)
an
if
than
keeD
markets,
he
mai ne
with you. If he
has sav,ed $25,000 and he has 20
y«ars of reasonable expectancy of
working and earning ahead of/kim«
be has a vastly different problem
naet
(Special to The Financial Chronicle)
the more difficult be'HARTFORD,
the
You
hat
mm
^ ^ SflheJTamteg'bjrerflWOO011to
mar-
amount
provided
him
on
does, then you can po^ibly make
s01T!e caPltal gains. "Ut 11 you seJJ
a stock where the ob-
we
availabie'to others £uXlf
uDon
on
should talk it out
cqvpH
client
vour
impress
moving upward or downward as it
,,?,ARF°?D' ConJack./P;
There are professional men who
hazy for those who don't
mate! J?'Ller
hav® been slavl"«
iiJdit:
£or the know where they are going or
Pnhnrnha/
Rr
MirlHlphrnok
Tnr w,'no
100
thic awayt
ponntrv.
them
use
we
musl
$35,000
special
Recent residential construe-
is
from
be
ready to absorb funds when credit
tion
wf must
time
liuin
stabilizing
credit
eases.
subtract
auuiidt-L
postponable
have
These
tight
of
»_
but
each
.
now
slackening while
some
have
needs
that
at^an susceptible
unsustainable
and labor
to rials,
who must
rplv
tion continues to
A
turn,
x
surged ahead
rate
in
may,
,
growth had
business
1956
of
impress
must
the
eain
to
_
?peenCdingngit bwaT delayed^untU ar^o^fnd m^t^ren?^1"'fl C°burn' Mlddlebrook Adds
after
ic
cfpn
confidence
.
they can
to accomplish,
expect
tm,p
,
bene-
tax
what
involving investment funds rang-
BRIDGEPORT, Conn-John M.
been
reasonably
and
potential.
many
variations
(special to the financial chronicle)
has
.
investments
sbare» for withjhe ^me^limted investment
But
these
-Witn Norman U acey
Reinhardt
The alternative
to
the
upon
sumers.
is
189 000
econ-
the quality of
making of business
officials and of con-
lags in " cumulative
Take
.
^
30
rolling adjustments at high levels-^tslry'and fiscal'policies; the long
in
..
supplying sufficient bank credit cents a share were paid on Sept. 1
to meet all credit demands, both ancj Dec. 1. A dividend of 42%
strong and weak. That route leads cents a share has been declared
to outright inflation with all its payable March I, 1957.
hardships and indiscriminate evils.
For the nine months ended Sept
Rather
the answer
is 10
to be
found
tV
p
namerioe
answer is
De iouno
dea"'ls,
CHICAGO, 111.—Helen R. Gitlitz
now
associated with Cruttenden,
speculative cat-and-dog ^embers of
common stocks, and they are do- D
ing it without know-how and with and Midwest
oc
South La Salle
the New York
.
„
x
30
(802)
The Commercial and
Continued
from
It is the incentive
tem.
9
page
driving force that
to
overcome
school in
factor, the
lousiness
causes
coal
difficulties; solve its
problems, and continue to
Problems to
And
SI
the
under
cents
free
Where
I
am
rising to $275 billion.
are
this
sure
terial should
shoWs
of inflation
background
ruinous
the
in
a
speculation
back
Un¬
credit risks.
poor
The
shoe
checked,
is tight. Other rates increased ac¬
burn
cordingly until
they will continue to
destroy the savings of
people by placing a premium
our
and
we
few months ago
a
Southern
saw
Pacific
mortgage bonds offered
debt.
first
5%%
at
The public, management
and labor must beware of
drifting
and Texas Eastern Gas Transmis¬
into insolvency.
sion
on
notes
ings
Anti-Inflation Program
to
What to do?
First
and
begin
to
foremost
pay
The
and
private., A few years ago, a
Vermont Savings Bank president
is
make
less.
can
and should pay off the entire na¬
tional debt in the next 25
years."
You cold hear the backs of the
Then
he
speakers
did
service
debt
of
to
it
is
now
be
can
charge
place.
few
public
He added, "and
do.
ever
this is how
the
over
what
the
on
$6.5
done!"
Our
national
billion.
That
is
interest. If we could raise that
$13.5 billion—only $7 billion
>
more
per
for
goes
year—at
first,
interest and
principal; later,
interest
and
a
little
a
that
$7
couldn't
billion
out
of
had
compete.
continues
power
business
to
grow
be
must
this
of
material—will be
business
a
profit,
of
and
make
a
moral
legitimate
a
of
Tightness
profit
in
enterprise economy.
By
definition, "Profit
end
result
for
chandise.
sult
the
the
of
It
rendering
selling
also
service
the
price
mer¬
end
re¬
in
spent
for
—
both
covers
the
time
and
parts
the1
of
another
the
billion
back for
go
moment
a
pro¬
discussing the profit
He walked in, waited for
quiet, and began, "If you
subject but no real beginning has forget everything I shall
say this
appeared.
whole
year
through, remember
.A^ long as the deadly threat of* these words, for they are the truth.
Soviet
Russian
military
action
remains, it will be politically in¬ "What Should Be" vs. "What Is"
bucjget?"
We
still
hear
talk
about
this
ept
to
cut
allied
government
defense and
support.
The
Administration
and
the
Fe^erpl Reserve seem to be trying
to maintain the
strength of the
i
dollar—with
rates
for
were
20
some success.
completely
years—from
1933
Lorig term interest
rates
par
better.
1
after
in
the
1953,
1952
price
open
was
really
market.
some
2
worth
is
Over
in
on
purposes.
frantic
Treasury
frqm all
—
over
the
yoju'll push
you
Washington
of "25."
us
into
fellows
for
dinner,
and
work
in
until
It
87%
down
to
97
%
on
Is it because he
when
the
or
operate
you
national
econ¬
premise
your
was
all young. Ideals
foreground.
doctrine
will
or
One
of
destroy
the
were
young
materialism.
life
of
any¬
any nation that follows it."
(He had called
came
—
the
in
De¬
were
3%s
somewhere
not
am
am
we
telling
telling
At the time, I felt the statement
.
was
bold
years
2%s
"I
when
you what is!"
that
and
there.)
men
you what should be—I
and
at
in
us
of
and
wore
he
set
brutal.
on,
I
forth
his generation.
Profit
free
and
advertising
(4)
The
public
taste
management
gressive and far-seeing to keep
pace
with
change and not
be
caught
napping!
research
Only
be the
can
it
the
capitalistic
student
a
Perhaps
that
is
But
came
the
to
as
the
realize
philosophy
cornerstone
enterprise
of
a
sys¬
it
the
and
the
ern
profits
The
experience of satis¬
That adds
I
to
up
lot of prob¬
a
have
not
world
live
we
the
He
the
new
materials,
raw
about tax
worry
wind
and
costs
taxes
all
the
up
these
and
The
year.
all
these
sheriff
things
come
hjnvr
Let
the
his
stress
me
profits
right
factor
is
man's
ing example.
here
in
beyond
and
that
in
long-ttrm
the
business¬
why I
sion
of
this
fit to inject
saw
the
business
talk.
cycle
into
other
automobile
business,
businesses, has
in
as
sparked
by
gone
1947-49
the
and
Korean
middle
1960
So make
—make
can
hay while the sun shines.
"there will come
a
threat from
sharply
a
Russia
or
greater
convinc¬
a
ing release of tension-could trig¬
ger off a long deflation.'
Is
it
sin
a
to
make
.
Is it
It
is
with
lie
a
true
some
mind.
than
in
sin to make
that
profit?
a
big profits meet
resentment in the
But I
earlier
think vastly
years.
I
publess
think
that
developed in the latter part
the last
century and the early
of
of
years
I
this
think
would
one.
most
admit
siderable
crossroads"
informed
"dirty
in
work
the
*
people
was
at
period
con¬
transcontinental railroads
were flung across the
nation.'
In
the period of
"rugged individual¬
ism," I fear that
tion
would
marks
a
close examina¬
dark
f nger-
reveal
the throats of
strangled
competitors as the oil industry
on
approached monopoly.
Almost
as
a
child,
found
bers"
taught
that,
racket
paying off
last
.
on
three
pose
I
woke
we
extensive
an
and
given
by
the
t:
lecture
keenest
our
,
courses
minds
public; Jhatp the
to
stock
market is the
the
market-place where
ownership of the corporations
of
the
United
We
States
explain
free
enterprise
any;
man,
also
to
that
save
the
You
tle
$40
as
I
think
.
will
dinners
steaks
a
may
to
are
too.
invest
of
as
sure
"What
or
consider
buy
it
earn
should
automobile.
an
rates
for "your
*
.
little
You
losses
in
is;
a.
substantial
earn
good
bad
(5). To
}:>'
to
years
years.
' '
,
„
must
in
,
,
;
(4)
to
-J
years with
capital risks "are
deflation,
profits
' "
..
make
capital
-
(3) After 11 boom
rising.
stand
;
"
.
»
earn
a
legitimate profit
virtue not
a
sin.
(6) -Enlightened capitalism be¬
lieves it is very good business to:
(a) Have
.
w.
,
/
a quality product;
Render' good service for
fair price. 1 /
.'(c)
Spend enough
(b)
to
business
(d)
-
men
the
went. Jo
Aircraft
-
are
or
me:
the
en¬
more
own
quarterly
talk
group,
President of
your
,
n:ws
,
(e)
the
the
tig
group got
He held up a
product,
Arouse your workers' in¬
terest in your business as
a
profitable enterprise by
incentive pay, profit shar¬
ing
plan and
ment
-
in
the
his
invest-
automobile
business.
We
can't
close
session
with
our
fessor.
We
had
without
a
final
rugged old
pro¬
Communists
in
those
days. It was a free forum..
Anyone could air his views. When
a
radical
to
to
research
place
service and credit terms.
...
monthly
with? their
follow
on
in a
world of constant change.
Tell
thecustomer
the
'
.
lit¬
keep
rave,
would^ get
the old
his
head
sit
frozen
test
had
up
man
ahd start
would
toward the window
until
the voice
died
down.
would turn toward
.
power
,
,
more.
,'v/'
-
pressures'are
the purchasing
/-
.
;
'*
booklet
a
buy
necessary
.
did
bargain?"
my
dollar.
foremen,
'lhe
The top officers
Along with a picture
to introduce
to
Contract did you*
a
Rising interest
their
„
up
be
dollar—"You
a
away
your
(2)
good
earning figures, company
and annual reports. • 1
*
Douglas
and
car
Inflationary
eating
know that
give
couraged to buy a share
I
a
truth about your
making outfit. These
When
effort
Conclusion
(!)
conscious of the fact that he
his men work for. a profit-
money—to
in¬
$25,000 worth, in
working lifetime."
plant problem, they have
talk aiming tp make every fore¬
the
fortune
common
how to
some
man
in
for
quarter.
most-of you
companies
many
come
a
Hq
me
car
'
-who
choose.
buy
will
your
money, can quickly become one
of the owners of
any business he
may
to
buying public where and
might
sell
know
changes
means
a
one
when
sense
seems
a
for your car?"
You
them -that
to
take
legitimate
have
really pay for
have
we
advertising campaign
numerous
teach
Now
up.
the
who
-
fig¬
paying
are
and
good
"What kind of
of
the middle three figures.
on
car.
.
timer
to
pay
dropped tne1
Now it reads
shares! I sup¬
3,265,000
nowadays they
down
a
pitqhnrian
get their money's worth.' Orr
nationwide
television, the \ first
panel
discussion might well' be
we
figures.
some
have
York
the'last, three
piously
off
do
organized
how
the "biggest "nurnf
in; New .York was
Horrified,
ures.
Irish
I
New
the
on
five
to
to
used
number
Exchange
each
day: Jt
3,265,793 shares: Then
the. and
when
the
we
the ' exact
Stock
on
that there
an
gam¬
traded
it
is a holdover from some rather
ugly phases of corporate greed
the-1920's
can
snares
profit?! hands.
a
Now how about the moral
justifi¬
cation of profits in a free econ¬
omy.
anything
in
So
you
Remember,
Either
"Vou
that' changes.
on
your
and
money r for
pay
gift/
show the
shucked.
,
easing two of
vested in
plant, the major finance
companies and the banks consider
tney gamble
were
proo-
layman, sitting at home,
television, anyone ' is
to
-
dealers
stupid.
was
People do gamble.
s.
profit while
a
We
common
•/-'
should
about
operated
ble
we
and
war
that
a
properly informed. It
would read
then,
huge government defense expend¬
itures, moved right over into the
long phase of sound expansion.
Normally, this could last well into
the
stocks."
publish
througn
11 years, the postwar
boom, with
only a slight price readjustment
squeeze
to
-
Back
Profit's Role Is Better Understood
The
foolish
He
public
could
pleased. Then one
"That is where
in
\
.
,
ply,
discus¬
.
To the
The
realized
we
outfit
your,
to pay
watching
employees and the
it
have
least in
years
We realized that if you asked the
man in the street
what the stock
market was, he was likely to re¬
That is
a
what
an
.
People
business
get
with other deal-,
up
(1) Overtrading
(2)
Nothing " down
For a century and
investment
banking
silence.
*
day
Large profits are
easy in the rising leg of a lusty
boom.
In
a
serious
depression,
top-flight management may come
the
you
They. £an in¬
profits. If
favor—walk
is
an
have
problems:-
tne
management
brokerage
think
control.
with substantial loss.
half
a
not
minded?
You
at
or
J
that its
when
men
,
of
germ
While we are
talking about ed¬
ucation, it might help in solving
act
public still don't realize that these
are
changed times.
My own business is an outstand¬
arid
w"
chief
out
blame
a
Why
small, team
Changed Times
often
your
is
the sub¬
on
for
three
every
J
there
home..
for-a
things next
will
is
corporations
available
are
paid vacations.
his sales, he makes a
If he doesn't make a profit,
do
more
-.
They spend tneir
dividend
crease your
theory, though most
and
,
sin.
as'a
company
a
pol¬
with
year
to
Most
finally
200,000 people,
of California
by
* American; Tele-:
1,400,000 people, and
Oil
a changed world? These
don't
regard
corporate
for
back
plan.
They have incentive pay, heal en
and hospitalization insurance and
below
can't
get
do
can
partner.
and
Douglas,
educational program for your men
to make them
profit conscious and
profit
Too
he
idea
big
union circles.
icies, government spendings, and
If
his
of
months.
sharing p.ans wnere
to 15% of net earnLigs btioie
up
advances.
must
same
More
have
tions, international upsets, new
products, new political develop¬
scientific
is
leaders feel
ject in
Uncertainty is
rule, not the exception. The
proprietor must face new inven¬
ments,
labor
foremen-
share—the
philosophy of mod¬
of them remain silent
in.
people
profits
ers.
un¬
the
/What
days
What
-
most.
General Motors by 540,0^0?
regard
on.
the
phone; by
,
lem.
that
continuous
characterize
moves
the
one
business.",
120,000 ; people,
corporation management.
labor
mentioned
and
that
world
of this
a
are
I
Maybe
happy
am
in
Standard
The
modern corporation
head
really feels and openly proclaims
on
predictable
changes
1
big
"Show
to realize that (he Bank of Am'eris owned by
those days are long gone.
say,
workmen.
sinful.
as
to
hung
in
;;respect.
You
the presence of
of
ica
aay."
thosa
bottom:
owners,
from
will¬
mistrusted
;came
kept
had
North American and Kaiser Steel.
How much better it is for them
New
in
was
public
business
far cry to the
and
in
12 hour labor
a
key to bigger profits.
(5) The working force must be
kept happy. This means satisfac¬
tory pay and
benefits.
Every
quality product or service reflects
skill
tne
came
share
one
he
He
intelligent
have/ heard on tne
subject of stock ownership came
remember
less than
expensive
answer,
suffering;,
the
questions
Workers
Mine
the
..
more
.
standing
of
those Tond LiOnS
United
at
for
that
desk.
ms
Some
Ycrk, I
hearing the head
of a great steel company in Car¬
negie
Hall, in
a
purple-faced
peroration, shout, "The s.eei cor¬
poration simply could not exist on
ag¬
.
is
As
very
be
little
America—perhaps out of ihat
well
cost
is
must
of
certificate
Douglas
.
tetters
>
ingness of coal miners to support
John L. Lewis, right pr wrong, ior
half a century.
?
*
'/
:'r
pre¬
lot of money.
day."
in the first place."
were
promotion must
effort
fickle,
any
the
Government
those
to
to
shaggy old doctor stood
silent for a long moment.
Then
very quietly and with great
pa¬
tience, he said, "Shush, children."
110%.
Federal. Reserve
back down
trying
The
instead
began a^ series of quick booses
1956,
ga¬
values?"
middle of 1955 the
2% s went back
92% to 101 and the new
cember,
the
Where is your place for spiritual
rose to
Sales
down
don't let up,
years
sag
come
labor
a
money panic
will be out of
the rediscount rate.
bonds began to
And
Sales
the product or service to the
public vigorously and constantly.
Another
the
from
summer,
midnight,
gadget?
a
brutal
Iji a little while, the bid went
bgck into the market and,
by the
Last
be¬
Quaker from Philadelphia got up
and
said,
"Doctor, that is the
It worked.
long-term 3%s
mechanic
a
wolf
We
country. Bank¬
75
is
quiet youngster said,
"Doctor, that's all wrong: What
about
my
duty to the aged, to
the
sick, to the
very
young?
businessmen, farmers,
you
It
shop,
because
in
re¬
These
into
came
morrow?
pros¬
a
the
wrong
and the Federal Reserve
leaders said, "if
were
a
business
one
screams
hours
other premise, your
conclusion is bound to be
wrong
all
other
interest rates'on the
various grades of credit
are based
on
the
government rate.
the
from
omy
y6u know,
rates started
up.
spend
from
wife, for his
uncoached—
As
home
a
a
thdught the price was right. The
Government
even
sold
several
funding
What
good citizen, a fine
wonderful husband? No!
children.
of
3Vi% basis and settled there.
Old
billion of hew 3%s at
par for
are
extra work, he can get
something
for himself, for his
the
period
a
the
ex¬
good neighbor, a faithful em¬
ployee of good character? No! It
isf because he thinks
that, by that
six
ma^i public himself,
and
he is
rage
or
months, Government
4s dropped from 101 to 92 %, a
ers,
for
home
"J* bonds was withdrawn in an
effort to see what Government
credit
and
cause
his
greed.
come
"What makes
-election,
support
and
midnight searching for
invent
Then
early
office
pects
gov¬
ernment bonds were frozen
at
2%%,
Banks could, in
general,
borrow or sell them
at
man
one
father,
1953,
on
makes
until
Money
to
—
of
sent
profit.
the
managed
(3)
he
selfishness
lot
money.
motive.
"The
mainsprings of all
traordinary human activity
spending
abroad for
human
deep
.
hefe and
of
these—and
a
revolving fund
hire 'em for less in
can
Out
the
quality, style, and be priced
right. Research is the key to all
to
in
—
we
came
costs
aoove
mine
a
strikes.
homely truth of the old
fessor
so
have
fee."
a
automobile business.
Let's
ber
the
is
production
is
effort
of
That
of
cost
free
a
hear
April."
research
fur¬
to\ynei, waicning
wretched, hungry " men pass oy,
remark, "we close up in Novem¬
or
economic
an
lems.
discussion
must
the
fills
lown
framed
of
$3,000 to buy -shoes for miners
to
need.
discussion—
a
product
a
with %
hie
for
fied
profit.
a
that
f
many;
the
Thursday, February 14, 1957
....
Tne
children who caihe t<5 school baruioot in January*? I was norriJLed
the
money
against the foregoing background
for
$70
a
Sav¬
everyday and in¬
pressure
rest
why
service
a
probably be
up to 3 %.
purchasing
survive,
goes
squeeze
to
is this—your
it makes
The
little
a
"And," said
banker, "who dares to say
we
To
sure
less
lot for principal—
the amortization tables
show that
the debt would vanish.
the old
its
lot
a
4%
more
flationary
shocked the assembled bankers at
benches creak all
moral
5%%.
institutions
to
up
costing
Atlantic
City by saying "We
Loan
at
Savings banks will
compelled to move
should
we
and
move
debts—public
our
offered
are
-•
(2) If this product is to compete
the public's money, it must
plainly to tighten
was
all credit for expansion and
and to sharply pinch
up on
It
fires
still burning.
are
The intent
ma¬
in your mind.
be
that
us
basis—and
market.
Business Needs Profits to Survive
now?
we
3.35%
a
problems
Solved
(1) You must find
a
around
of
pressure
government spending and the na¬
tional debt
The
Coping With Inflation
Be
of
.women
nished
of
little town in the soft
a
regions of Pennsylvania.
good
grow.
financial Chronicle
us
of
Then
turn
and
pro¬
he
and resumh
Volume
185
Number
.
his lecture
as
happened.
To him,
happened."
He
5612
.
The Commercial and Financial Chronicle
.
.
though nothing had
Until
walked
Continued
from
258
the
the
looked us over
began quietly, "You know
something.
Sometimes
even " I,
capitalist that I am, think that
in,
and
maybe
collectivism
Bolshevism
or
Communism
counted
might
—
Co.
or
best
be the
Steel
only
wouldn't
In the third
relatives
no
His
from
steal
to
In
fact, they are
extras, it noted.
.If
own
place, He
put
the
on
services
short lifetime — and
lifetime — some way,
some
how, you and I will have
to learn
to get along with-t^e
politicians,
the crooks and- the
Steelworkers
relatives."
gerated.
for my
through revisions
mainly
of
'
orders
?
becomes
prices.
on
point out that
tion
-
tract
Steel
known
offer
several
potential buyers before the deal is completed.
industry sources suspect foreign steel is the major offender.
Usually, the sellers are vague as to where the material comes
from."
Stuart
Halsey,
associates
publication pointed out, that the absence of an abnormally
high level of steel inventories also argues against a general re¬
duction in prices.
Still in short supply are heavy plates, struc¬
tural shapes,
Western
Also
trade
semi¬
maturing
certificates,
of
hap'pen, there are enough orders on the books to
production running into mid-June, "Steel" states.
ing
$14,160,000,
are
priced ..to
yield from 3.50% to 3.75%, ac¬
cording to maturitv. Issuance and
issue
entire
The
is to be secured
&
Hutchiftson
The
6,
it
uptrend
in
the
keep
of-
prices
continues
It
scrap.
its descent
$55.17, down
It is still above the
rate
steel
of
capacity
year-ago
Institute
companies,
the
for
Steel
and
that of the
level of $50.33.
announced
having
96.1%
will be
industry
entire
In the week
a gross ton.
83 cents from
of
an
that
steel-,
average of
the week beginning Feb. 11, 1957, equiv¬
alent to 2,469,000 tons of ingot and steel for castings, as compared
of capacity
96.5%
*
for
97.1% of'capacity, and 2,498,000 ton£ (revised) a week ago.
industry's ingot production rate for the weeks in J 957
is based on annual capacity of 133,459,150 tons as of Jan. 1, 1957.
with
The
New Incentives for Irish
Industry
The
Irish
troduced
the
and
manufactured
.Donal
of
•
the
duction
has
in¬
to
en¬
incentives
to
up
two-thirds
fit
the
The
The
of
the
1957,
ended Feb.
developed
Southwest
be
as
much
declined
facturing
-
a
1956
wCek
corresponding
the
on
business
up
taxes
profits of its
regard
V
taxes
coal mining.
50%
payable
businesses
is
given
compared
pay¬
coal
by
started
after
until
1967.
for
factory
depreciation
taxation
buildings
Last
totaled
1957,
In
in
encourage
1957,
647.972
or
1.9%
above
the
" -
on
the Past Week
for
the
ended Feb. 8, 1957,
Reports," .held to the higher
latest week
industry assembled an estimated 143,441 cars,
140,411 in the previous week. The past week's
rose
'
above that of the previous week
during
assembled.
the
United
agency States.
a
reported
This
there
compared
were
22,917
trucks
with
23,093
in
the
year ago.
industry.
.
Dun
&
However, the toll was consider¬
ago and the 238 in 1955. Compared
Bradstfeet, Inc., reports.
ably higher than the 236
Ire¬
in
thought that
the
close
the
of
week,
recovering
some
prices
prices
of the
losses.
for
While
slackened last week and prices fell
receipts expanded, they were smaller
hogs
hog
last year.
for
shiallest
any
Lard
slight rise in lamb receipts and prices occurred,.
A
week.
prices dipped slightly but exceeded those of a year ago.
There were rather sharp fluctuations in cotton prices a
"
.'«•
week
ago.
Mill
fixing
price
and
some
buying attributed to reports of
Belt helped to stabilize prices.
drought in the Southwestern Cotton
Cotton exports
this season are expected to total about 6,500,-
than export volume last Sea¬
by the New York Cotton
Exchange/' amounted to 275,000 bales last week, comparing with
215,000 bales a week earlier and only 5,000 bales a year ago.
With the exception of print cloths, trading in cotton gray goods
was
rather slow. Wool fiber used in December was 6% higher
than a year ago; for 1956 as a whole, wool fiber consumption was
000
bales, about three times larger
Exports of lint cotton, as reported
higher than in 1955.
Volume
Trade
•
In
■
Latest yVeek Held
at Level of
Preceding Week
level of the previous
The
and women's
in major appliances,
retail volume at the
L
week.
volume
of retail trade in the
period ended
of last week was unchanged to 4% higher
according to estimates by Dun & Bradstreet,
Wednesday
on
a
dollar
total
year
ago,
thah
Inc.
Regional estimates varied from the comparable 1956 levels by
the following percentages: New England, West North Central and
Mountain—2 to -f- 2; Middle Atlantic —3 to +1; East North Cen¬
+3; South Atlantic +3
tral —1 to
Commercial and industrial failures declined to 287 in the week
ended Feb. .7 from the postwar high of 320 in the preceding week,
machinery
investment
limited supply, trade observers
Pacific Coast 0 to
There
parel
was
an
to +7; East South Central
the most noticeable gains
with
and
+4% and West South Central +4 to +8%, *;f *
upsurge in the buying of women's Spring ap¬
substantial rise in the call for
in suits and millinery. A
women's Winter coats and dresses
remained at the level of the
preceding week. Best-sellers in men's apparel yrere White dress
shirts, sportswear and slacks. Although interest in overcoats and,
suits was sluggish, volume slightly exceeded that of a year ago.
Department store sales on a country-wide basis as taken
from the Federal Reserve Board's index for the
week ended
Feb. 2,
1957, increased 4% from the like period last year. Ijx
the preceding week, Jan. 26, 1957, an increase of 2% was reported.
For the four weeks ended Feb. 2, 1957, an increase of 3% was
recorded.
For the period Jan. 1, 1957 to Feb. 2, 1957, a gain of
2% was registered above that of 1956.
Retail trade sales volume in New York City last week rose
2% to 4% above the like period in 1956, according to trade
occurred, but volume in sportswear
observers.
allow¬
purposes
and
buying of both packaged and bulk
Although consumer purchases of
climbed last week, sales declines
sets and food products held total
^he corresponding week last year 136,308 cars and
week
the
stocks continued to expand.
television
below the corresponding
cars,
'
previous week and 24;659
_
to
with
.1
^
\
j
as
The volume of cattle for sale on Monday was the
Monday since October.
Prices for steers and
heifers climbed moderately.
While veal and calf prices fell at
the end of the week, receipts rose" above those of the previous
than
Business Failures Show Moderate Declines
have also been introduced in
land
week.
made
„
ances
2,
output
24,65.9 trucks Were
30,
This concession will operate
Improved
the
mining
1956.
Feb.
by 3,030 cars, while truck output declined by 176 vehicles
re¬
Sept.
ended
week
output, states "Ward's."
Last week's car output
the
'
wheat.
apparel
production total of cars and trucks amounted to 166,358 units, or
an
increase of 2.854 units above that of the preceding week's
export
A
week
Last week- the
re¬
in
the
according .to ^Ward's Automotive
trend of the week before.
to Sept. 30, 1961.
to
of
duction
the
with noticeable
-•
■ \
' t
furniture
^week in 1955.
Automotive
Another tax concession is given
in
from
Automotive Output*Continued Upward Trend
U. ;S.
also
a
decrease
the
demand
The
5%
decrease of 33,017 cars or 4.8%
but an increase of 12,193
cars,
manu¬
get
can
company
further
17,773? cars or 2,7% below the preceding week, the Asso¬
build¬
new
cf half of the
mission
able
A
a
of
somewhat.
f
Loadings' for
the full
have
concessions
tax
introduced,
was
ciation of American Railroads reports.
,
of«
Ireland,
as
This
2.7% Below the Preceding Week
and machinery.
New
distributed
energy
Loadings of revenue freight for the week ended Feb. 2,
ings and half the cost of the plant
•
electric
of
'
in Chicago
toward
previous
#
areas
cost of the factory site and
been
Trend the Past Week
week,
substantial.
view
rallied
12, 1955.
grants in West and Southwest Ire¬
may
annual capacity of
<
Car Loadings Declined in Week. Ended Feb. 2,
grants may be given under earlier,
laws which are still in force. The
land
an
last
Week's output dropped 303,000,000 kwh. below that
■.
re¬
"
and
West
on
.
previous week; it increased 676,000,000 kwh. or 6.0% above
the comparable 1956 week and 2,097,000,000 kwh. over the week
new
a
*
less
based
are
%
Noticeably Lower
there might soon be further price increases for rice. Sugar
softened in both domestic and foreign markets,
Coffee
of the
.
the
1956
for
Institute.
v r
The past
imported
goods,
giving
substantial employment or lead¬
ing to an export trade. The maxi¬
mum
grant
under
the
Act
is
In
the actual weekly production
by the electric
ended Saturday, Feb. 9,
estimated at 12,019,000,000 kwh., according to the Edison
was
Electric
cost,
by
economy
placing
3
ago
of Jan. 1, 1956.
as
amount
before.
undertaking will bene¬
national
$1.40,000.
year
Electric Output Continues Lower
maxi¬
a
where the establishment of
industrial
A
light and power industry for the week
entitled
Act
buildings,
of
mum
96.4% and pro¬
crop
prices fell slightly
corn
was
son.
be made towards the cost of
factory
figures
128,363,090 tons
Industrial Grants Act, 1956, grants
may
was
goods, according to
new
a
2,467,009- tons.
percentage
Scully, U. S. representative
Irish Industrial Authority,
Under
the rate
ago
The operating rate is not
comparable because capacity is higher than capacity in 1956. The
'fork City.
New
month
a
Commodity Price Index Scored Steady
Rice prices advanced and
rice
placed at £,433,000 tons or 98.8%.
was
the erection of factories
expansion of exports of
courage
week
_
Government
new
like
For the
■
Re¬
totaled 2,935,300 bushels in the week
ended Jan. 31, compared with 2,796,700 bushels a week
previously.
Barley and oat prices dropped and it was noted that oat -shifhments from Chicago were 15% smaller than in the previous week.
Soybean prices dipped in fairly active trading, although export
buying was high. Purchases of soybean oil were at record levels
and trading in soybean meal was fairly brisk.
Volume on the
Chicago Board of Trade climbed last week. Average daily pur¬
chases of grain and soybean futures totaled 50,000,000 "bushels,
compared with 43,000,000 in the preceding week and 40,000,00p
bushels a year ago.
v
" S
the
the
new
Corn
ceipts of
steel-
December, "Steel's" price composite
was
Iron
1
Reports of improved growing conditions resulted in increased
In
reached in
American
making
McMaster
and
Co.
&
Feb.
\-
Grain prices tumbled somewhat
decreases in wheat and rye.
1
levels.
peak
operating
Co.
general
steelmaking grades registered $66.17
to
the offering are—
Associates in
the
to
preceding week.
by 98 Diesel elec¬
$18,909,000.
Baxter
the
ended
certificates
of
record
At
on
tric locomotive units estimated
cost
from
subiect
are
contrast
making material* is the price of
Commission.
Commerce
state
In
authorization of the Inter¬
the
to
over-all steel consumption
an
eqii[kl, if not exceed, the record.
Bolsters the belief of a high level of business is the backlog
orders"fpr^pUrable 'gobds.'' If new orders ceased entirely, and
this won't
aggregate not exceed¬
sale of the certificates
journal, is the expectation of
that will
Aug. 1, 1957 to Feb. 1,
1972, inclusive.
The certificates, second install¬
annually
ment of an
large diameter line pipe, oil country tubular goods
nickel-bearing stainless steel. ;
refuting steel price cut ^possibilities, continues this
and
$2,910,000 of Norfolk &
Ry.
3%%
equipment
(Feb. 14)
trust
& Co. Inc. and
offering
today
are
general trend of food prices at the wholesale
Declining almost steadily in the past week, the daily whole¬
commodity price index closed at 293,72 on Feb. 5. The lowest
index so far in 1957, this was moderately beloW the 298.28 re¬
corded in the preceding week and the 280.62 a year ago.
selling of
:
f
The
Equipments Offered
An
sale
:
;
.,
Most
Norfolk & Western Ry.
Registered
;•
•
Declines to Close Past Week
moving at premium prices is probably exag¬
it to' the highest bidder so it becomes
tonnage
Sellhrs
to
:
Wholesale
a
as
Index
raw
get another increase.
•
is to show the
level.
received
year
'
^
Price
Feb. 5, compared
;
line
\
Food
The wholesale food price index, compiled by Dun & Bradstreet, Inc., dipped somewhat the past week to stand at $6.13 on
with $6.16 a week earlier. This level was 3.9%
higher than the $5.90 of a year ago,
'
i'
Commodities quoted higher last week included lard, cotton¬
seed oil, cocoa and rice. Lower in price were
flour, wheat, eorn,
rye, oats, barley, beef, sugar, potatoes, steers and hogs.
% i
The index represents the sum total of the price per pound
of 31 raw foodstuffs and meats in
general use and its chief func¬
96.5%
another upward nudge in wages the first
result of the rising cost'of living. Their con¬
calls for this automatic adjustment.. Next-July 1, they will
of this
long
your
at
material,,.cost increases set off
by the round of steel-wage boosts last summer are still going on.
.And
available.
not
are
Producers
in 1956. LiabilitiesMn
incurred by 25 of the failing concerns as
Easier Tone Last Week
Capacity
uptrend,
for steel
recession to hold the
gentlemen, His
"Unfortunately,
Week
This
Wholesale
particularly severe,
the metalwofking weekly said that producers may absorb some
freight charges. They did this in, 1954 during the steel inventory
of Directors."
Board
so,
Scheduled
the
on
competition
slightly above the 31
were
week's
past
Even though some forms of steel are
easier to get, prices
generally will not be cut, "Steel" magazine stated on Monday last.
He
customers.
-
Production
$100,000
against 26 last week.
the
of
of
would be smart
enough to know how. In the sec¬
ond place, He would be honest.
has
most
Corp. took 48.1%, Chrysler Corp. 19.9%
for
place,
He
for
remained
nf
car-volume gain. General
and Ford Motor
29.3% of last week's scheduled passenger car assembly.
Motors
all of us—if we could
bet God Almighty to come down
and
run
the thing.
In the first
thing
total
excess
form of socialism or
some
ago.
year
day—
last
last
week, but considerably exceeded the 205 of this size a
Among small casualties, with liabilities under $5,000, a
sharp drop to 37 from 62 in the previous week occurred, although
6 "v'
page
"nothing had
a year
with the prewar level, failures were 10% below the 318 of the
similar 1939 w^ek.
Failures with liabilities of $5,000 or more dipped to 250 from
According
ment store
to
the
Federal
sales in New York
Reserve Board's index, depart¬
City for the weekly period ended
of 3% above the like period of
26, 1957, an increase of 7%
(revised) was reported.. For the four weeks ending Feb. 2, 1957,
an increase of 5%
was registered.
For the period of Jan. L
to Feb. 2, 1957, the index recorded a rise of 4%
above that
Feb.
2, 1957, showed an increase
last year.
tho
In the preceding week Jan.
nnrrAcrwvnHin^
n^riod
1TI
1956.
O'J
(804)
The Commercial and Financial Chronicle ;
rnntinneri
imrn
*
r^nnp
"
schedules, would mean
industry must develop
,
.
•
.
-
,
■m
*
fmyflglmil
—
IhA
in
Jl XIV V all ABM
III
-
overcapacity.
m
A 111 mm Vim
111 II1111X1 IK 111
m
observations
term
demand
metals.
It
for
pointed
production
the
on
and
that
the
low.
Less
figures,
nonferrous
trialization
very
metal
was
shown
produced in that whole period of
thousand years than in
age
1945-1955
decade.
From
1800
to date, the production and consumption of these metals has in-
creased 230-fold
as
zinc,
lead
compared with
world
population
pounds.
risen
(aluminum,
dnd. tin)
was
By'1955 that
those
as
countries
which, subsequent to the
beginning of the Industrial Revolution,
have
become
ized.
highly
industrial-
Moreover, the population
the
former
the
latter,
crease
M
is
more
and
a
than
continues
to
in-
more
rapid pace, yet
the long-term
per capita gains in
world use of
nonferrous metals
are, still readily discernible in the
two
capita
per
sfeel
and
the
figures.
Data
for
additive
metals, no
doubt,.would also show important
net
capita gains.
pey
'
,
our
in
metal
an
not
becomes
too
difficult
„
rather
than
of
causes
of
the
000;
progress
ferment
in
Asia
the march.
are on
increased
the
demand
Expanding
for
metals
does
aluminum
long-term picture?
of
792,500
percentage basis
into
Kaiser Alum. & Chem.
Corp.
Anaconda Aluminum Co....
This
all-
w
increasing its share ofmonferrous
tinned
metals
consumption. Aluminum's
proportional penetration, based on
Metall^esellschaft figures of total
'
n
^
The, first three
v
two
'
nonferrous metal
consumption in
1955, is given below by major industrial countries.
additional
t
.
:
Hnmpctir
nn
competitive
7-n
it
•
\u
/
?
;
^
v,
estimated
of
atter
Revere
demand
Supply
1,838.600
—6,100
78,000
75,000
75,000
2,000,400
2,126,500
2,451,000
2,839,000
2,899,000
33.7%
19551...
12.6
1,844,700
21.5
1956
1.925.000
10.3
1957
2,064,000
1958....
48.3
12.3
25.5
42.8
1959_„_
15.9
2,214,000
2,374,000
37.1
1960____
2,546,000
7.5
18.6
28.9
5 5
19 0
21.2
2.9
13^7
2.9
Sees No Oversupply
These
7.9
1.1
13.9
4.0
27.4
,
aver-
steel—per unit
low
of
ofe4rnlendsUofmlal HfUmPtir
in
relation
to
four people, 86
?°UndS \TUS 5;600, In t-he other
pounds' free
world countries major gains
in
the
aluminum,
of
use
aluminum
You will note that the
first seven
countries mtentioned
consumed in
1955 from 40 to 65
pounds of nonferrous metal per
head, and yet
the
percentage of aluminum pen-
with
ltriU^,.vari?d fr°m?
billion, consuming only
confidently expected
ahead.
Beyond
countries
the
listed
U.S.S.R.) lies the
a
be
can
75,000
75,000
in the years
12 industrial
population of nearly 1.841.8 pounds
-
Company
indicates,
survey
forecasts
of
should
of
the
.ol
approximately 50%
world
market
and
with
would"jumpiht^nsump-
there
Hon
of
It
is
all
metals
these
tremendously.
long
factors
plus the inherent qualities of the
range
a'per "capita °i»sis.tIThenactiui<l SSf'tK?
ap!
P,dce.
per""canita a|ll,m™mf. consumed manufacture.so attractive"^!"muntries
countries
HsteH
listed
Western
in
pounds
Is
dustry and investors alike.
7.5
from
current
to
United
States.
the
in
ft
varied
Germany
21.6
In
third
expansion
in
a
series
wiu
amrninf,m
a*
Pomnared
sumption of copper per
capita still
5^latter
».he?d(of
aluminum,
the
favorable
s
whether
•weight
or
considered
volume
Should Reach
posi-
from
a
basis.
Higher
is
'
J?°£ and 1955 m<?d1els- ^Ylth
models
using
^
be
concluded
in
the
that
most
the
new
part
are
not based on
government supports
in the form of
guaranteed mar-
Capita
i?1
f'd
can
i
for
fmm
th*c*
concluded from these
1960>
mentioned
as
previously,
*3^? can'Sfi?
thlthat sdimfinfim
consumption
does
Pht 0 td
^a
10%
^ nPfPn^w
The Business & Defense Seiv-
?
aiumJnL ^plyTd
tota]
spring. One company thus far
*957 has put 25,000 tons to
the
Stockpile,
de-
another
plans
use
n
t
vu™ question
^ I
1^!'
that
n
proportion
of total
capita
per
T
consump-
i
»
•
concerns
lis
dustry is being overexuberant
in
its appraisal of aluminum
demand
,
maer
companies
^
that pumary aluminum field and the newer
jppasam^ion, In our domestic mar- carried out according
SItS
,®56'. 'JSi™0,ln
could
\.c*H
aluminum
company has
no
the
to
.
(and
the
until
possibly
new
new
of
likelihood
late
not
With
of
amount
Quarter
.
putting
amount
modest
a
of
government.
modest
a
..
.
indicated that it has
indention
present
in
the
then)
of
vear
appear
^ur car?
P^cation
..Foreign markets show
a
more
Shie adequate ^^r^eheaS
Engine
is
automatic
transmis-
components
account
oToversuppiy hfthl
question
Mediate
ahead
years
im-
becomes
\a~irPei
th*
natural
and
quick
»"*>»
color finishes
acceptance, the
tn
made
to
pn«ihlp
the
to
government
the
n.,k
duHng 1957 and
tn
th*
ctAPUniin
1958 should
more
excess
is
suddIv
estimated
iUd
sUn put
in
those
that
2
vears
1959'
volume
of
available.
metal
no
will
Beyond
be
these
such
made
dates,
a
new
agreement would have to be
negotiated in the event the gov-
could
half
no
figures
are
the
original
only pnelong-term
over
in
such
hope to match local
canno^hcpe^^tch lo^l
latter
has
oer
been
advancing
annum
pace
at
a
than in the
UiHted States
80%
chances
are
there
of
aluminum industry's breaking into
volume
new
spokesmen
can
be
markets?
are
done.
Industry
confident
that
it
They point out that
for the first time since World War
II ended, a free and
continuing
supply
of
metal
increases in
is
available
for
the
castings.
New
models
17.7 pounds of die castand
12.3
This expanded
use occurred and
was
engineered into passenger
car design before aluminum came
»<to fl'ce supply. It seems very
''kely that 1958 and 1959 models
wm
amounts,
with
major
a
"break-
thl'ough" in terms of tonnage
,eal Possibility,
For
examPIe.
manufacturer
the
of
Respect,vely on 1956 and
a
Aut« "Break-Through"
What
30-
1956.
over
i'.gs, as compared to 15.7
pmrnds
'
available,- it- jected
be surmised that
of
or
financed
severaf vtart
II
over/millionth
Obviously,
bein*?
cannot
faster
Tndustrv
the
of
next
areas
g°v«nment areas.
thaTtake ca?e if LvTndiSted
me1, ? While
entrants, if
to original
added outside North America,
canable
has
Pounds^ currently ^ear-
die
theTcw""smelter ca^cHy "beTng
Jhe
be
o
for
another 32.6%, power brakejs and
gteering take ? 3%> trim 13 2%>
and miscellaneous uses make up
the remainder. Aluminum trim in
ooWer;
to
in
The3 la~sin|le a^
sions, now' accounting for 41.1%.
found
^S.TL" It??'
a,,d 150,000t tonS m ,1960'. aft-' esourirmustturnS
Alundnium L mited ^nd/oJ
& ^r=! «
and
most, of course, is whether the in-nonierrous
in
Automobile Uses
to
''Ld'^'Twrd'major
rnomWy
onlv
fe wer® ,used' there would
® !!2SSnprimary sup^p ly^based
£
fn
of only
rate
iji
°
|ast
metal
P
If
annum.
increase
proiected
vf
,,
P^r
not
.P"rP°se,ssimply to the stockpile if necessary beinf " y s own con~ fore the contracts expire in 1958
The
from
P'ove to be conservative.
the
problem in 1957 or 1958.
higher figures for 1959 and
War II,
kets and/or accelerated
amortize-
Per
Level
It
predecessor
some
"ig^h-priced
^
pounds o the light
'neta'' 255
the
aa0Je
lo^fcould
average per car
19o7
iminedi-
ate
despite facilities
price
the
major building periods in the domestic alumi-
Se lemaining
remainiL^fnt'TiW^1"^8
four
aa-i«d^try
since World
listed,
distinguished from its
tion,
witlT 34 6
353,000
stockpile objective, somewhere in
support
of
trie
con-
The
program,
this
aw,?
«ii
™
237,000
was
new
require
equ
75,400
62,500
465,000
1957
-
15.6/o
than
car
portion
for
only 6%of the world's
population,
ranked below
Switzerland in the
on
6,500,000
that
consume
aluminum per
of
counting
produc-
a
year,
car
of
automo-
on
manufacture
willi
nidiiuidciui ew
pai>
the
supply
(including
rest of the world
)
11a
in
actually used last .year. On
basis, it is estimated that
or
Deficit*
metal
the neighborhood of 2ti- to 3premise that the primary alumi- million tons, has been
acquired
num
industry faces no real over- The short-term goal was reached
The
tin.
figures
Excess
Primary
'
21.6
14.6
too
Total
heavier
are
than
more
car.
models
United Mares
States
76,400
21.6
58.6
is still
tive
tion
196,500
64.6
ket
of
passenger
243,000
300,000
300,000
300,000
300,000
The first !1 industrial
countries
listed above in 1955
showed
pounds
replace
America's second annual
Supply
1,565,700
1,679,400
1.751,500
2,076,000
2,464,000
2,524,000
...
to
Aluminum
or
Supply
40.3
needed
average
based on the long-term
ln. alu„m_1^.u"1 consumpt,on
Primary Aluminum Demand and
the
the fact that only 40 pounds
(the
at the rate of 7%% per year,
doubling every 10 years).
of
alumt-
in
°,f alumlT can, be realized from
net imports and
primary
gains
and
P
recovery,
or
total
supply, as compared to
■
major
num
manufacturing
techniques
technology. The weight appeal
<
,
mates o
plrl
4
position
price
metal; and
'
following tabu ation shows
tn.flcI?
24
has
arv
Scrap
...
i
'
?^
..
manufacturers with the-problem
(Short Tons)
18.8
accounted
it
PvL.
For
Net
13.4
26.8%, represented
nrodnrtinn
LP
thprp
Imports
U.S.S.R.
oi
un
Production
Germany
jbJuc, and
not-lines
Demand
__
enpper,
.p
^
9.3
domestic
is
to
in
fimp
Scheduled
....
lead,
new
thp
Domestic
8.8
Approxi-
the
weight, as additional gadgets,
»HHiI conveniences, and other sales
panapitv cpViphI
P01n,ts, aVf added; the increasing
f
P fi Z
fr n7 iqc7"
availability of aluminum for the
97 ,-nn
f
^
th
H'
automotive
market; the strong
<>•501™
in'U»es«*cond
mavjmiltTI
K
will
nnri
Estimated
Italy
*Alnminum,
takes to brine
as
iin«
VPar
PerCcnt
49.4
of
market
however, until recently
more
'
21%
mate^ials< The nsln2 interest in
aluminum passenger car applicatio.ns ^fleets ? number of under!ying factors, including: the gr^"
ing concern of automobile
cr
Aluminum
57.3
Japan
aHHpH
thp
<
Estimated
email
Aluminum
Canada
■
tim/
f
capacity; ' and
Olin
nf
p
Consumption
Sweden
Netherlands
h
companies men- primary
newcomers
,
applications.
car
keen at relatively low* unit levels
nntcntini compared to the use of other
Consumption
..1.
France
5 mL5lirpmpnt
h
ture,
»
nrnHii^inn
45%
process
tentative 379,500
ve
a
of
years.
In the automotive field, manufacturers of trucks and trailers
consume substantial quantities of
aluminum. Its consumption in
d°mestlc passenger car manufac-
Iv.nllP
"e™comers' un" "cvuc
Melals Corporation and Harvey
™
rate
few
past
for by transportation in all forms,
of which auto parts account for
approximately 12%, aircraft 8%,
and railroad equipment 1%.
high-cost
some
1959.
,
•
afce now.Jinthe
Adding
of
the
at
the
the
aluminum
in-
an
production.
r'nmnnnv
,h
Per Cent of United States
Primary Aluminum Capacity
material,
in
has been consistently
to
capacity in the United
1957, 295,000 tons in
an(j
Reynolds Metals Company.. 27
fit
in
tons'in
,
Aluminum Co. of America..
Lbs. per Capita—,
Switzerland
Federal Republic of
primary
States
short
if.
structural
purpose
recent years,
a
months
of
mately
summary, it now looks as if
tons
will
be
added
to
a
on
six
senger
202,500
,
decades ahead.
Where
this
capacity
divided
follows:
populations, the awakened
demands for better living standards,
all the prerequisites exist for an
from
Total Nonferrous
Belgium
*
be
in the
--
jn
presently
peo-
with
uneconomic
total of 1,775,500 tons.
Thus,
primary aluminum capacity
in
the
United
States
is
or
stretch-
building procompletion dates
closing-down
Corporation, 434,500; and AnaAluminum Company, 60,-
conda
Africa, to realize that other
pies
cal
the
substantial
earlier
definite period ahead. They
might
also be reduced somewhat by the
deferred,
1955 Per Capita
Consumption of Nonferrous Metals*
United States
United Kingdom
reset
of
primary aluminum;
Reynolds Meals Company, 488,500
tons; Kaiser Aluminum & Chemi-
measure
of
grams,
tons
need
reflect
ing-out
than
can
■
Country
ready
continues
of
year-to-year gains
are expected to
develop after the
first quarter.
One of the most promising opportunities for a "break-through'
into volume levels is the trans¬
portation field, particularly pas-
the end of 1958 to 2,273,000
tons, and at the end of 1959 to
2,652,000 tons. These figures al-
TT
stalled
study the underlying
or
.
tivity
growth
Most
at
to
Thursday, February 14, 1957
.
.
stronger
construction
accelerated
o n.
attend-
We
use.
borders,
own
U.S.S.R.,
of
double
rise
regimented
about 1.3
figure had
in
is
anticipated,
aver-
t i
latter
mand
have
c o n s u m p
temporary
announce-
electrolytic cells,
If overcapacity is threatened, it is
relatively easy to defer adding as
many lines; or, conversely, if de-
only look to the new industries
rising in the countries south of
to
well
as
capita
avoid
Recent
rows or lines of
decade
metals
veloped countries, with
of
10.4 pounds per
capita.
These figures include
people in
all the world's
undeveloped areas
The
nations,
every
progressive gains in
per
ant
copper,
head
per
dozen
a
ing the field. Total primary capacity at the end of 1957, if present
indicated schedules are adhered
to, will amount to 1,978,000 tons,
adopt stretch-out
accomplish.
Aluminum
is
produced in pot-rooms consisting of
the industrialization of the unde-
the three-fold increase in
world
population. In the year 1800, consumption of the five leading non-
ferrous metals
of
Machine Company, are also enter-
'
Finally, and most important, dur- Review U. S. A. Capacity Plans
ing the balance of this century,.
At the present time, Aluminum
major progress can be expected in Company of America
has an in-
several
the
*
observations
tion
Second, in nearly
since
1900,
most
the
vol-
indicate that the industry
is now adopting both policies,
driving for new markets and deferring
some
smelter
capacity,
the past expansion and
consumphas evolved from the indus-
of
comparison
present-day
Demands Ahead
worthwhile
that
new
ments
„
also be made regarding
longterm metal trends. First, most of
these metals up to the end of the
18th century were,
by
with
■
Ann 17
■
lyUHy
can
nonferrous
out
m
Increased
Other
long-
consumption
_
InHflCVW
imiUAllY
Statistics, included a number of
exceptionally thoughtful and pertinent
or
to
programs
till?
-
markets
ume
.
has
designed
n'uminum wheel and
which would add
per
car
Vveight
and
some
,
70 pounds
important
The
,
an
brake drum
effect
savings.
,
used
aluminum
one
die
cast
,
aluminum engine-block,
previous-
ly announced,
is moving steadily
through the testing stage towards
consumption in
1957 of 7 to 12% over 1956, as- or 1^0 pounds less than a
surging that general business ac-' ventional gray iron
block,
con-
and
Volume
reportedly
.
.
The Commercial and Financial
Kingdom iii 1955 alone
absorbed some 19% of available
aluminum supply. Use per car in
Britain already averages around
116 pounds while the more expensive models like the Jaguar
use up to 182 pounds.
,
Shipbuilding and Railroads
savings in fuel through
lessened deadweight hauling.
an(j
in
is
,
4-uir.
—-
this field
—
—
or
books
of
both
primary
secondary producers indicate
that
requirements
manufac-
of
cause of an
outlay
for the first 1957 payment which
should be declared about the
middle of this month for payment
on March 31.
use
of
the
turers of electrical goods and ap-
industry is
pliances are steadily increasing,
Some estimate that present requirements will double ^by 19(10.
More
_ aluminum is^finding its way
into power transmission and distribution lines,, into packaging,
and even into small motors. In
aluminum
railroad transportation
by
noticeable in such countries
Switzerland, France, and the
very
as
Netherlands,.and
„ can
_
be
„ expected
_
be used in larger volume in
Western Europe. Rolling stock on
_
to
the British
railway systems, par-
actual
The
revenues.
for the year was
which
"
The
showed
revenue
a
demand,
ment
also offers the
it
Britain
in
industry
a
was
nance
as
stepped
33.6%
against
'I'lMfl
/\r»TK
month"
"iitrsn
up
for
=
1-v
r
a
the
of
road
and
all
on
other assets now owned or hereafter acquired.
,
L. A. Investment Course <
Sponsored by Exchange
LOS
Calif.—Some-
ANGELES,
thing "new* has-been added To" the
Montebello Community Investment Course to be presented Feb.
19 through March 26 by the Los
Angeles Division Pacific Coast
stock Exchange, it was announced
earnings
on
seem
alone
'
hfx
On March 12, Mr. Whitney, of.
Pe™Psey±^5 £? ^
and
"
Ired B. Post, of Shearson, Hammill,.
*iC1«!* secu"ties an_
it
fair to expect that the
of
thp
9«
^n' 3
l
total payment for this year would
at least equal the $1.50 per
_
the"irain
This was
would
w%
J*
1 At?/*
i
•
*
,
-
f
share
•
•
reason of
£or ihe operating deficit reported
last-.November- and forthe
deficit .of 16 cents per share as
against net income of 48 cents per
share for November 1955.
-
challenging market for substantial
of metal.
quantities
mileage
year which, due to reorganization
'.terms;; determine the dividend for
the current year, are expectedto
prove to be higher than those of
1955 out of which the 1956 dividend was disbursed. Cash and
working capital are admittedly
moderately lower, but not sigiiificantly so. Cash items as of last
Nov. 30 were down about $800,000
and working capital was down
only a little over $900,000.
^
•
™ series will also include the
following: iectures.
Howard D. Dawson (Morgan & '
Co.)- Securities, Types and
_
Origins, Feb. 19; W. G.'Paul
(President, Los Angeles Division,
Pacific Coast Exchange), "Se~,
curities Markets and their • Opera'
;
the movement of iron ore which
tions, ..Feb. 26; William G. Wil-*
Incurable Optimist •
ordinarily represents almost 5%
liams, Jr., (Dean Witter & Co.),;
For these reasons, I find myself of the freight revenues of the
J^"31-]^^ ^i^Yjor," March 5; and
an incurable optimist on the in- "Soo." This traffic, however, does
The reason? of . the speculative Dr. John C. Clendenin (UCLA),
dustry's basic ,long-term pros-- not swing the balance between a classification of "Soo" stock are
What are Common Stocks
pects. This is not to say that the good year and a bad one for this principally the heavy dependence Worth? , March 19
substantial part of such replacealuminum
Based
very
mainteto 41.9%
the 1955
small decline, the rate of
short, the increasing requirements
for aluminum over any extended
period appear to be general, and
Last year's result might conchase of new equipment. While possible break-throughs in several' ceivably have been better had it
the British iron and steel industry fields could result in substantially not been for the steel strike which
can be expected to obtain a very
higher levels of demand.
for almost a month all but halted
ticularly freight cars, is in bad
condition; apd. the British Government can no longer defer pur-
fully cumulative, and
this $6.3 million issue is secured
by the first mortgage on the entire
increase of about .15% elates. Similar action is expected
about $1 million
more than for
the previous year
and in November of last year, in
in
use.
Order
ant
considered
being
are
—
Furthermore, in-
is
duces the exceptionally high yield by Course Chairman Lewis J
of over 8% based on total divi- Whitney, Jr.
dend payments of $1.50 per share
—
<*•
program for added vol- has been at least a highly quesNot only aluminum guard tionable expedient to bolster
rails,
light standards, highway earnings in so many other cases,
ume.
traffic
are in
itself
6V2 times in 1956 and 4%
the average for the pre¬
terest
of stock pel mile of road,
In spite of all these favorable
points, the stock of the "Soo" is
classed among the speculative rail
equities as evidenced by the market appraisal of less than five
times estimated 1956 per share
earnings at the current price of
about 18%. As a result, it pro-
struction
ships has been over-
charge
on
vious five years.
model published by the time this story is lightly , capitalized with only
appears, it is estimated that the $9,200 of bonded debt and $19,000
50
"Soo".earned something between
$3.75 and $4 last year as against
$3.35 in 1955 and the next best
result was registered in 1951 with
earnings ; of $2.60 per share. It
is also to be noted that the 1956
The aluminum industry is also record was solidly achieved,
looking hopefully to the nation's rather than by means of a reducmulti-billion-dollar highway con- tion in maintenance outlay which
already
proving
through economies of maintenance and attendAluminum
times
homes at st r a t egic locations
throughout the United States durinS 1957 fully utilizing aluminum
building products, and has commissioned one of the nation's
foremost residential architects to
belp with design.
► \
:
technical difficulties of using
on
builders,
independent
'Abroad, therefore, the direction
of any break-through is more
likely to occur in the older forms
of
transportation: railroad
and
steamship.
Shipping yards the
world over, based on tonnage in
place or on the books, will be
busy building new ocean liners,
tankers,-intercoastal and other
types of ships well into the 1960's
Now that the initial
prejudices
aluminum
about
resi-
aluminum
such earnings,
on this
together with the road's
small fixed charges was covered
dential building products. Alcoa
Minneapolis, St. Paul & Sault Ste. Marie
is convinced .that a reasonable use
Pf the aluminum building prodNet income of the Minneapolis,
the
34.8%
for
the
1955
year.
nets now available could put 1,200
to 2,000 pounds into a new home, St. Paul & Sault Ste. Marie for Also, the overall efficiency measas compared with the 50 to 100 1956 made a new high by a good ure of gross ton-miles per freight
pounds in 1955. To implement the margin. Subject to possible year- train-hour showed a 55% gain for
program, it is erecting, through end adjustments which may be the 1947-55 period and the "Soo"
United"
and
better
and
on
interest
bond
Aluminum Company of
new
33
availability of earnings, it
the
and
to
over
the
on
has the first call
Amer¬
ica has recently started an inten¬
sive
development
program
for
it.
France, the automotive industry is
already one of the major markets
for aluminum. It is estimated that
the
automotive
market
in
the
I
be converted
still to
are
and
Kingdom
(805)
Chronicle
apartment buildings are in need
of it, and many office buildings
at
cost.
United
Inthe
.
produced
be
can
lower
10%
Number 5612
185
.
:
Aluminum in
.
than
10%
tion
finds
of
its
aluminum
produc-
dips or pauses in its forward momentum, but these only
into
aircraft
provide opportunities for the alert
way
road. For the. "Soo" it is a matter of the road on grain conditions
Among the sponsors are the
of the volume of grain movement and on farm income and pur- Montebello
and Bell Gardens
which contributes some 30% of chasing power and, as a result, its Chamber of Commerce, Kiwanis,
the road's freight revenues and irregular record of earnings. Net Lions and Rotary Clubs of Monte1956 was a good: year in this regard, income for 1953, for instance, bello and Lions and Rotary Clubs
It should also be noted that when amounted to only 84 cents per of Bell Gardens,
we speak of "freight revenues" share, but it should not be overFurther intormation is availof this road, we mean the greater looked in this connection that this afc,ie at Montebello Unified School
.part of total revenues since pas- was largely due to heavy main- District Adult Education Dept.,
industry will be immune to occa-
been estimated that
has
It
Aircraft
less
sional
investor
to acquire aluminum
equities at attractive price levels.
There are only 10 common stocks
of
integrated
aluminum
companies actively traded in world
security markets. Three of these
14% of domestic aluminum pro- are
domiciled
in
the
United
duction is being used for defense, States, and one each in Canada,
a
market which seems likely to Britain,
France, Italy, Switzerhold for the next several years in
land, Japan and India. Actually
view of present world tensions.
the list is smaller when safety of
principal is taken into consideraloi-rtact
onfl
net
Building and Construction Uses
tion. By far the largest and most
The No. 1 market for alumi¬ progressive
of these companies
are the ones located on the North
num, exceeding the transportation
field, is building and construction. American Continent. A summary
Here, the aluminum industry has of estimated earnings for 1956 and
been making spectacular inroads,
1957, together with indicated anthrough curtain wall construction, nual dividend rate and yield, is
color-finishes, insulation, air con- as follows: The earnings estimates
ditioning, windows, sidings, and for 1957 are based, on the assumpthe
like.
Air conditioning pre-,>tion that all of'the' metal produced
sents a strong future market - for
hnd " accordinglv
aluminum in that only 5% of the <^~r
De fva •»*"c7 accorcun8 y'
production in the United States,
8% of which is for military aircraft. The industry believes that
it will
take
10 years before it
loses its military aircraft market
to
other metals.
Approximately
.T}..
small homes in the
so
United
equipped, five-million
Rates of the Four Major
The 3,324 mile
n
'Soo"
gives
car.
Current
—Earnings—
Price
Estim.
Div.
Yield
(2-1-57)
Earns.
Bate
%
Limited
$5.75
America. _
4.32
Alum. & Chem. Corp. *2.35
Aluminium
Aluminum Co. of
4.00
Co.
Barclay
La
$7.82 $1201/^
4.64
f67/s
41%
*2.65
54%
4.84
$2.40
1.20
1.38
topped
2.17
mentioned
11.3
0.65
1.19
"Soo"
Roy
A.
Duke, Douglas
u. Dunca
~
A ~
^
Dean S. Foltz,
Hess Inv.
(Special to The Financial
Chronicle)
111.
ment""company,
Tnvpst"
,rand
edc
Howard
721 Maine
Street"
now
a
with
,
1955
has
bv
about
earlier.
15%,
However,
outdictanced
both
District
Ra+io
result of dieselization as com-
H.Schnei-
39.1%
with 38.3%
So
or at
Soring St
on
the
average
Goodbody Staff
(Special to The Financial Chronicle)
for the
H-
ctCKcil IS
bodv^^Cn *917° cL?thh
cfrilf
"
vmurcn.
—
since
the
end
of
World
War
IIJ
Furthermore,-the "Soo' is a light
road, laid largely with 90 lb rail.
This indicates the probability of
a
long range replacement program
CHARLOTTE, N. C. —William
Co
H. March is with Reynolds &
221
South Church
Street
With Garrett-Bromfield
order to
(Special to The Financial Chronicle)
from
DENVER,
Colo. —James R.
is now with Garrettand bridge improvement program. Bromfield & Co., 650 Seventeenth
Thus while defined or indicated Street, members of the JVMwest
"available"
about 15
earnings
are
within
far as reorganization indenture terms are concerned, the
portion of net that can actually
invs
be
Cleaver
Stock Exchange.
cents of reoorted earn-
#
Joins Hams, Upham
as
(special to the fu^ncial chronicle)
DENVER
Robert
Colo
W
paid
put 1°, stockholders may Elmer has' joined the staff „£
considerably less for some HarriSj UphaJm & Co., 740 Seven-
time.
teenth
por the more conservative investor,
the
Current
price
of
about
should
at the
83
at
Street.
Wayne Jewell Adds
"Soo" first mortgage
for 1954 and income
4>As due inanneal
1971
hav.
rnn<?idprah1e
B. Stewart are 1951-54 period, and the
Securities portation Ratio for the
Corp., 1780 South Broadway.
its
havinS declined to 34.8% in 1955
Pared
^
Columbine
as
the
and
oneration, its Transportation
a
618
With United Secs. Co.
five to indicated "available"
earnings for some time because of
(Special to The Financial Chronicle)
capital needs. Late last year the
GREENSBORO, N. G
Arnold
road announced plans for an $8.1
million freight car construction S. Marks has become affiliated
urogram, for instance. Although with United Securities Company,
the "Soo" has been on the "plus" Southeastern Building,
side in its freight car hire account
for several years, only about 25%
Joins Reynolds & Co.
of its car fleet has been added
(special to the financial chronicle)
in
F"11,Y„<4i:,s"lized
siT rr,tv l955;
the "Poo" is now a fairly' low-cost
1-.. HU1
mil, W
w.
L
Horace Palmer, William
y
QUINCY,
riihert
trilbert
con-
the
Class
I average in both
traffic
and revenue trends in all recent
vears with the exceDtion of 19^3.
tx
7
from
denced in the price-earnings mul41
Ut-p tUnn
timop" -ie
tiple of less than "five times" is
t^t dividend payments will probably be held at a low level rela-
the road also contemplates a yard
0.90
Johnaffiliated with
DENVER, Colo. — C. Edward
Investment Co., 208 South Ashley,' William G.rrtChambers^^Let
in the low rate
Another factor
traffic, revenues having
and
Northwestern
t"\
better rate per
of the traffic of
a
received
Joins
other capital improvements,
achieved from new peaks in rev-
15.7
Chronicle)
that now 2100 W. Cleveland Avenue,
under better control the Exchange.
gain fuller efficiency
high-speed heavy train capabilities of diesel ooeration and
enues
become
Salle Street.
is
also
but
The banner results of 1956 were
1.99
Joins Columbine Sees.
a
Soo
About 45%
18.7
(Special to The Financial
CHICAGO, 111.—Robert S.
has
15.4
of the following year.
With Barclay Inv.
son
1«>57
the
interchanged
road
necting carriers.
Annual
Estimated
jyr»s
Reynolds Metals Company._
Indicated
traffic
parent
"Soo"
the
1957
on
the
with
Earnings and Indicated Dividend
North American Producers
to be
Twin 0f capitalization of earnings evi-
the
and
Cities is controlled by the Canariinn
nnrl
ic
itc
larcroct
dian Pacific and is its largest
separately operated subsidiary,
The "Soo" in turn operates the
forecasts for the current year.
Price
months ended May 31
"Soo" extending
Wis.,
Superior,
vy-1
x
seem
due to complete dieselization and
northwest into North Dakota from
Current
*12
of the
total.
Wisconsin Central which extends
southward from the Twin Cities
to Chicago via Duluth. These two
roads together afford access to
Chicago for the Canadian Pacific,
and the 1948 traffic agreement between the latter and the "Soo,"
?nd which superseded the less
favorable 1940 arrangement, not
states-should be regarded as maximum 0niy lengthened the haul for the
Estimated Per Common Share
Kaiser
the tenance expenditures
represent
revenues
minor factor of around 2%
.
.
are
senger
(Special to The Financial Chronicle)
DENVER,
Colo.
—
,
Forrest L.
Trans- which tbe yielH to maturitv is Thomas has been added to the
first 11 about 6%%.' While payment of
Wayne Jewell Company,
months of 1956 was the same as interest on this issue
is contingent 818
Seventeenth Street.
84
(306)
The Commercial andFihancM
Now
Aid Investment & Discount, Inc.
Proceeds—To reduce
bank
Offering—Expected today
(Feb. 14).
Allied Resources Fund, Inc. (2/25-28)
Dec. 14 filpd 400,000 shares of common stock (par one
cdnt). Price—At market. Proceeds — For investment.
Underwriter—Fund Corp., 523 Marquette Ave., Minne¬
-
apolis, Minn.
1
Minerals,
Ltd.
Nov. 23 (letter of notification) 3,000,000 shares of com¬
mon stock
(par five cents). Price—10 cents per share.
Proceeds—For mining expenses and development of oil
properties. Office —- 901 Sherman St., Denver, Colo.
Underwriter—Lackner.&
Co., Denver, Colo.
American Federal Finance Corp., Kiiieen, Texas
Sept. 5 filed 40,000 shares of class B common stock (par
,
15) and 400,000 shares of preferred stock (par $5) to be
offered in units of 10 preferred shares and one common
thare. Price—$55 per unit. Proceeds—To purchase used
paper and
the field of
to extend the company's operations into
new car
financing.
Underwriter—None.
J. J.
American
Natural
Gas
Co.
(2/27)
Jan. 14 filed 442,114 shares of
be offered for subscription
to
of record
new
on
share
or
for
common
by
(par $25)
stockholders
common
about Feo. 27, 1957, on the basis of one,
10 shares held (with an oversub¬
Price—To be set
common
stock
each
scription privilege); rights to expire
14.
on
Feb. 25.
about March
or
stock of
Michigan Consolidated Gas Co., a sub¬
providing the latter with funds to repay or
$25,000,000 of bank loans. Underwriter—To be
determined by competitive bidding.
Probable bidders:
White, Weld & Co. and Drexel & Co. (jointly); Blyth &
Co., Inc.; The First Boston Corp. Bids—To be received
at Room 1730, 165 Broadway, New York
6, N. Y., up to
reduce
(EST)
on
Feb. 27.
Anaconda Co., New York (2/15)
Jan. 25 filed 1,734,865 shares of capital stock
(par $50)
to be offered for subscription by stockholders of record
Feb. 14, 1957 at the rate of one additional share for each
t
five shares held; rights to expire on March 5.
be supplied by amendment. Proceeds—For
Price—To
improvement
and expansion program.
New York.
Underwriter—Hallgarten & Co.,
~
,
Appalachian Electric Power Co. (3/19)
Feb. 13 filed $29,000,000 of first,
mortgage bonds
March
1, 1987.
construction
due
Proceeds—To repay bank loans and for
Underwriter—To be determined
program.
by competitive bidding.
& Co. Inc.; Eastman
Kuhn,
Loeb
&
Probable bidders: Halsey, Stuart
Dillon, Union Securities & Co. and
Co.
(jointly); The First Boston Corp.;
Harrimart Ripley & Co. Inc.
Bids—Expected to be re¬
ceived up to 11 a.m. ('EST) on March 19 at the office of
American Gas & Electric
York 8, N. Y.
Service
New
r
Arnold Altex Aluminum Co.
Corp., 30 Church St.,
(2/18-21)
177,760 shares of 35-cent cumulative con¬
vertible preferred stock (par $4) and
177,760 shares of
common stock
(par $1) to be offered in units Of one
§hare of each class of stock. Of the common stock, 50,000
shares are to be sold for account of certain
selling stock¬
holders. Price—$9 per unit ($5 for preferred and
$4 for
common). Proceeds—To repay bank loans and for ex¬
pansion and working capital.
Office
Miami,, Fla.
Underwriter—Scott, Horner & Mason, Inc., Lynchburg,
—
Virginia.
..
{
Associates
Investment Co., South
Bend, Ind.
Jan. 7 £iled 85,000 shares of common stock
(par
$10) be¬
ing offered in exchange for the outstanding stock of
Cap¬
itol Life Insurance Co.,
Denver, Colo, on the. basis of 34
shares of Associates stock for each share
of Capitol
stock. This offer will expire on Feb.
21. Underwriter—
None.
Statement effective Jan. 30.
•
Atlas
June 11
Corp., Danbury, Conn. (2/19)
146,160 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—To four
Business
Credit
Corp., Philadelphia, Pa.
filed $600,000 of 6% convertible
subordinated
debentures due June 15, 1968.
Price—100% of principal
amount. Proceeds—To retire indebtedness
of the com¬
pany to its affiliates for money borrowed for
working
capital.
Underwriters—Hallowell, Sulzberger & Co. and
Charles A. Taggart & Co., Inc., both of
Philadelphia. Pa.,
and Weill, Blauner & Co., Inc. of New York.
Statement
withdrawn.
28
(letter
—None.
.
•
of
notification)
18th
and
other
general
corporate
Transport refrigeration equipment. Office—947
Communipaw Ave., Jersey City, N. J. Underwriter—
Fred Kaufman Co., 120 Elm
St., Orange, N. J.
ness
—
Centers Corp.,
Philadelphia, Pa.
July 30 filed $8,000,000 of 5Vfe% sinking fund debentures
due Aug, 1, 1971, and
1,600,000 shares of common stock
(par one cent); subsequently amended to
$4,500,000 of
debentures.
Price
Proceeds
About
—
—
To
be
supplied
$4,100,000
will
by
be
amendment.
used
to
acquire
seven
shopping center sites and a Penn Fruit super¬
market adjacent tonne of them; the balance
will be used
to develop shopping centers at the
seven
sites and to
acquire
estate
and develop additional sites for related real
activities, and for general corporate purposes.
Underwriter
—
Blair
&
Co.
Incorporated, Philadelphia
Central
Electric & Gas Co.
rities
Proceeds—To repay bank
loans, purchase
of
subsidiaries
Underwriters
and
for
other corporate
secu¬
purposes.
Paine, Webber, Jackson & Curtis and
Stone & Webster Securities
Corp., both of New York.
^Central & South West Corp. >
'
Feb. .11
—
filed 600,000
shares of
common
stock
(par $5).
Proceeds—To repay bank loans and to
purchase addi-.
tional common stocks of Central
Power & Light
Co.,
Public Service Co. of Oklahoma and
Southwestern Gas
& Electric Co.
Underwriter—To be determined by com¬
petitive bidding. Probable bidders:
Blyth & Co., Inc.,
Smith, Barney & Co. and Harriman
Ripley & Co. Inc.
(jointly); Lehman Brothers and Lazard Freres & Co.
(jointly); The First Boston Corp. and
Pierce, Fenner & Beane (jointly). •
Merrill
.
.
Lynch,
/
equipment;
Underwriter
—
None.
and
other
""
,
to
Getto
McDonald, the selling stockholder. .Office—
Pawnee Road, Wichita, Kan.
Underwriter—Harris,
Upham Sz Co., Wichita, Kan.
;
5800
.
5
go to
Wallace
(President), who is the selling stock¬
Underwriter—Francis I. du Pont & Co., Wichita,
-
(Harry)
(letter
000
Merchandising Corp. (2/20)
of
notification) 30,000 shares of 6%
stock.
Price—At par. ($10 per
Proceeds—For retirement or
exchange of $100,6% subordinated
debentures; to
preferred
open new stores;
working capital. Office—134-01 Atlantic Ave.,
Jamaica, L. I., N. Y. Underwriter—None.
and
to
all
offices
for
Colorado Fuel & Iron
Corp.
Jan. 15 filed
$19,903,300 of 4%%
series A, due Jan. 31, 1977
by
common
Danly Machine Specialties,
30
filed
Price—To
17 "shares of
150,000 shares of
be
supplied
expansion
program.
Becker & Co.
G.
Inc.
(2/19)
stock (par $5).
by amendment. Proceeds
For
common
—
Office—Cicero, 111.
Inc., Chicago, 111. •
Underwriter—
Daystrom, Inc. (2/28)
$8,000,000 of convertible subordinate
Feb. 5 filed
tures
due
deben-
March
1, 1977.
Price — To be supplied by
Proceeds—For expansion and
working cap-'
Underwriters — Goldman, Sachs & Co. and R.
amendment.
ital.
W..
Pressprich & Co., both of New York.
•
Dayton Power & Light Co. :
16 filed 328,630 shares of common
stock (par $7)
being offered for subscription by common stockholders
Jan.
of record Feb. 8
rights to expire
ceeds—To
the basis of
on
eight shares held
(with
on
new
share for each
oversubscription privilege);"
Feb. 28. Price—$42 per share. Pro¬
bank
repay
one
an
loans
and
for
construction
pro¬
Underwriter—None.
gram.
Delaware Income
Jan.
15 filed
market/
Fund, Inc., Camden, N. J.
600,000 shares of common stock. Price—At
Proceeds—For
investment.
Distributor—Dela--
Distributors, Inc., 300 Broadway, Camden, N. J.
Diversified Oil & Mining Corp.,
Denver, Colo.
29 filed 2,500,000 shares of 6% convertible non-
preferred stock, first series (par $1), and
to purchase 500,000 shares of common
stock
(par 10 cents) to be offered for subscription
initially by
common stockholders in units of 25
preferred shares and
a
warrant to
per
purchase five common shares. Price—$25.50
(each warrant will entitle the holder to pur¬
unit
chase
one
common share at
any time prior to Dec. 31,
1957 at $2 per
share). Proceeds—To repay mortgages/to
$1,312,500 of five-year 6% sinking fund
debentures, and
for further acquisitions and
working capital. Under¬
writer—To be named by amendment.
Dixilyn Drilling Corp., Odessa, Tex.
stock
Price—100% of prin-
(2/20).
Jan. 28 filed 930,000 shares of class A
convertible stock
(par $4). Price—To be supplied by amendment. Proceeds
—To repay bank loans and other
debt; and to purchase
equipment.
Underwriters—Hemphill, Noyes & Co., New
York; and Dallas Union Securities Co.,
Dallas, Tex. *
El
Dec.
Paso
14
Natural
Gas
Co.
filed
5,235,952 shares of common B stock (par
$3) being offered in exchange for common stocks
of
Pacific Northwest Pipeline
Corp.. on the basis of 14
shares of
convertible debentures
being offered for subscription
stockholders of record 'Feb. 5, 1057 on the
basis of $100- of debentures, for/ each
held; rights to expire on Feb. 20.
Y.; and Berry
warrants
-
* Cessna Aircraft Co.
Feb. 4 (letter of
notification) 500 shares of common
stock (par $1).
Price—$40 per share.. Proceeds—To
go
share).
Private Wires
•
ware
cor¬
Corp., Philadelphia,
ie Cornwells Industries, Inc.
Feb., 7 (letter of notification) 25,000 shares of common
stock (par 10 cents).
Price—$2 per share. Proceeds—
For working capital.
Address—State Road, Cornwells
Heights, Pa. Underwriter—None.
cumulative
purposes.
common
,
—
Aug.
porate
-
Pa.; B. Ray Robbins Co., New York, N.
& Co., Newark, N. J.
development;
participating
Cleveland
York,
Aug. 27 filed $600,000 of 10-year 6%
debentures, Price—
90% of principal amount.
Proceeds—For research and
expansion;
program.
Consumers Time Credit, Inc.
Jan. 17 (letter of
notification) $250,000 of 6% renewable
debentures (subordinated),
payable upon demand) Feb.
1, 1962 or payable (without
demand) Feb. 1, 1967. Price
—At par.
Proceeds — For loans,
working capital, ets.
Underwriters
Walnut Securities
,
Century Controls Corp., Farmingdale, N. Y.
shares held; rights to
expire on March 6.
be mailed on or about
Feb. .15.
Price—
Proceeds—For construction
share.
Morgan Stanley & Co. and The First Boston
Corp., both
of New
(2/20)
25 filed $1,750,000 of
convertible subordinated de¬
bentures due Nov. 1, 1971. Price—At
100% of principal
will
—
A.
Jan.
seven
per
by
indefinite.
Offering—Date
'•
(no par)
stockholders of record Feb.
25, 1957, on the basis of $100
of debentures for each 25 common
shares held; rights to
expire March 15, 1957. Price—To be
supplied by amend¬
ment.* Proceeds
To retire about
$43,000,000 of bank
loans
and
for
construction
program.
Underwriters—
Jan.
■
stock
Consolidated Edison Co. of New
York, Inc. (2/26)
1
filed $55,087,300 of convertible
debentures due
Feb. 15, 1972, to be offered for
subscription
Latter has agreed to purchase an addi¬
tional 300,000 common shares and
reoffer them to per¬
sons
selected by it at $1.10 per share.
and New York.
common
•
Cargo Cool Corp.
branches;,
inventories; and for working capital. Busi¬
of
Feb.
Jan. 31
for increased
927,598 shares
Underwriter—None.
Under¬
(2/15)
(letter of notification) 100,000 shares of common
stock (par 10 cents). Price—$3
per share.
Proceeds—To
open and
acquire additional truck terminal
filed
Warrants
$16.50
writer—To be named later.
•
*-
,
24
for each
Underwriter—
purposes.
Power Co.
being offered for subscription by common
stockholders
of record Feb.
11, 1957 on the basis of one new share
Burma Shore Mines,
Ltd., Toronto, Canada
July 26 filed 600,000 shares of capital stock, of which
500,000 shares are to be offered
publicly, and 100,000
shares to promoters. Price—At
par ($1 per share). Pro¬
ceeds
For equipment,
exploration, drilling, working
capital
Connecticut Light and
Jan.
(par $1).
Office—4718 W.
★ Cohen
i f
be
,
240,000 shares of com¬
Price—$1.25 per share. Proceeds—
For partial payment for
plant site; partial payment of
obligation to Memorial Inc. and for working capital.
stock
mon
Feb.
San Francisco
to
,
Kan.
Philadelphia
construction
.
Dec.
Dwane L.
Chicago
for
and
Jan.
Beautilite Co.
holder.
Pittsburgh
loans
Commonwealth Investment
Corp., Sioux Falls, la.
14 filed
499,400 shares of common stock (par
$1).
Price—$4 per share. Proceeds—For
working capital to
expand company's business and operations.
Underwriter
per
* Cessna Aircraft Co.
Feb. 5 (letter of
notification) 2,550 shares of common
(par $1). Price—$39 per share. Proceeds—To
Boston
bank
on
March 5.
Registration—Planned
received up to 11 a.m.
(EST) on March 5 at
City Bank Farmers Trust Co., 2 Wall
St., New York, N. Y.
uled
unit ($98 for the debenture and
$1 per share-for the
stock). Proceeds—For expenses incident to off-shores
drilling of oil and gas wells.
Office—Shreveport, La.
stock
New York.
reduce
•
,
Co., New York.
Under¬
/.
(jointly); Eastman Dillon, Union Securities &
Co., and
(jointly). Bids^—Tentatively sched¬
Barnwell Offshore, Inc. (2/20)
*•'«
J v
Jan. 29 filed $2,000,000 of 6% subordinated
sinking fund
debentures due Feb. 15, 1967, and
600,000 shares of com¬
mon stock .(par 50
cents) to be offered in units of $100
of debentures and 30 shares of stock.
Price — $128
&
bank loans.
Glore Forgan & Co.
uled to be received
•
Underwriter—Bear, Stearns
ISSUE
Underwriter—To be determined by
competi¬
tive bidding.
Probable bidders:
Halsey, Stuart & Co.
Inc.; Dillon, Read & Co. Inc. and The Ohio Co.
(jointly);
Lee - Higginson
Corp. and Salomon Bros. & Hutzler
Manufactures precision ballbearings.
—
REVISED
program.
filed
Underwriter—Shearson, Hammill & Co., New York.
amount.
Jan..24 filed
•
Proceeds—To
Barden
trusts.
PREVIOUS
(3/5)
$16,000,000 of first mortgage bonds due 1987.
Feb. 5 filed
.
25
ADDITIONS
SINCE
ITEMS
Columbus & Southern Ohio Electric
Co.
—
on
Proceeds—To purchase
sidiary,
}1 a.m.
Office—Washing¬
ton, D. C. Distributor—Automation Development Secu¬
rities Co., Inc., Washington, D. C.
•
Thursday, February 14, l'J57
..
cipal amount. Proceeds—To
repay
writer—Allen & Co.; New York.
investment.
St., Houston, Tex.
Benjamin & Co., Houston, Tex.
Pain is President.
•
Proceeds—For
.
Amalgamated
car
market.
Jan.
•
•
Automation Development Mutual
Fund, Inc.
Aug. 24 filed 300,000 shares of common stock. Price—At
loans
and for expansion program.
Office — Akron, Ohio.
Underwriter—Merrill, Turben & Co., Inc., Cleveland, O.
.
★ INDICATES
in
Jan. 24 filed $1,250,000 of 6% capital notes due Feb. 1,
1972 (convertible until Feb. 1, 1964). Price—To be sup¬
plied by amendment.
Chronicle
Northwest
common
B
common
stock
stock.*
for
each
The
8
shares
offer, which
of
Pacific
has
been
accepted by holders of the required 2,435,000 shares-of
Pacific " Northwest, .will
gxpire on March 1 (extended
from Feb. 8).
Underwriter—None. Statement effective
Jan.
7.
•
"
-
(807)
v
Number 5612
185
Volume
Elyria Telephone
%
.
.
The Commercial ond
Financial Chronicle
Elyria, Ohio <2/21 i,
Co.j
shares of cumulative convertible pre-;
stock (par 550/. Price-^To be supplied by amend¬
Proceeds—Together with funds from the private
Feb. 1-filed 15,900
ferred
ment.
sale
series B, for con¬
Kidder,' Peabody &
/"•'
"
Co., New York;-
•
■
port Circle, Route 38, Pennsauken, N.
Arthur & Co., Haddonfield, N. J. *"*■';
if Equipment Finance Corp.
Feb..5 (letter of notification)
bonds; to be offered to present
:/.,**
/•
.
Columbus & Southern Ohio Electric
Louis RR.
' ' y
Equip. Trust" Ctfs.
1; "x""
*
-
$6,420,000
Lone Star Gas Co
■
"
;
"
-
-
stockholders—underwritten by
to
(Offering
Hallgarten-A: Go.). 1,734,863 shares.
■
,
/
J. Underwriter—
./"
*
-
~
1
••
$300,000
(Fred Kahitnan Co.)
'
;
Trans-Gulf
-
Son,
Inc.) $1,400,000
(Monday)
Food
(Rudd,'Brod
$300,000
Co.)
&
England Power Co..——
New
(Bids
-
March 1. (Thursday)
.Equip. Trust Ctfs.
Southern Pacific Co...
.
-
'
(Bids to be invited)-
..
.
.
(Monday)
March 11
Corp..-^______^_Comniq|k
Public Utilities
stockholders—without underwriting) 646,850 shares
General
.
Bonds
...
$10,000,006
EST)
noon
.
Bonds
Southern Counties Gas Co, of California
(Bi<3« to be invited) $15,000,000
/J. ^.Preferred
Inc.——.
Town,
•
Co-.-^i.^....^—....Common
Inc. h $1,399,840
Horner & Mason,
(Scott,
CnmtwAft
(Wednesday)
March 6
<
Co.._Preferred & Common
Arnold Altex Aluminum
by
(Blyth & Co., Inc.) 350,000 shares
18
&
Rupe
February
•s
Jorgensen (Earle M.)
...Common
Offshore- Drilling,- Inc
(Dallas
PreferreJ
—
(White & Co.) about 40,000.shares.
'
$263,750
(Foster-Mstnn, Inc.)
..
$300,000 of 6% 10-year
stockholders and to indi¬
viduals engaged in the farm equipment business in N- C. ;
and S, C.
Price —At par (in denominations of $1,000
each.)
Proceeds — For .working capital. , Office — 1026
South. Blvd., Charlotte, N.; C. Underwriter^None.
■;
Flakewood Corp., San Francisco, Calif.
Nov. 14 filed 100,000 shares of common stock. Price—
At par ($10. per share). Proceeds—For construction of
manufacturing plant and to provide working >capital.
Underwriter—None. Robert E. Evju is President..'
*
y
•
^.._......;Common
/Security Electronics Corp
-
..Common
Cargo Cool Corp..^.....—t—
'
,
^
Stuart-Hall Co., Inc.—.
V
'
..
■
.
(Offering to common stockholders—underwritten
The First Boston Corp.) $19,483,400
'
—.i.„..;Common
—
Co—:».Bondi
EST) $16,000,000
a.m,
Hilo Electric Light Co.
...
.Common
(Offering to common stockholders—no underwriting) 51,380 shs.
February. 15 -.(Friday)
Co.
Anaconda
11
(Bids
.
.
■
..(Bids nooii EST)
March 5r (Tuesday)
.;1.
February-. 14..(Thursday)/■' •.
New York, Chicago &.St.
.
Underwriter —
'•••'
; :■/:
En Fid Corp.
"
•• y.,r;yy....
Jan.-14 (letter, ot notification): 40,000 shares of common
stock (par $1). Price—$5 per shares Proceeds—For ma¬
chinery* equipment; working capital, etc. Address—Air¬
struction program.
5
y:
'
?l,25d,00a* first mortgage;4%^ bonds,
to be used to rep'ayr bank loans and
of*
•
due ,1987,
'
••
(Offering to
Minnesota-Power & Light Co
...........Bonds
;(Bids to be invited) $12,000,000.
.
Growth Fund,
.Florida
Inc.
Nov. 23 filed z,lhju,000 snares
Price—$5 per share. Proceeds—For
Underwriter—Frank B. Bateman; Ltd., Palm
cents);
Offering—Expected
'
soon.
Inc.-_____.Debentures & Common
Sperti Products,
v
investment.
Beach, Fla.
(S.
„•
if Food Town, Inc., Washington, D. C. (2/18)
(letter of notification) 100,000 shares of 8%
Feb. ,14.
Barden
con¬
Common
Co.) 146,160 shares
(Shearson; Hamtaill &
J
f
-
'
(Tuesday)
,
V; y
,
^
,
Bonds
Co..
stockholders—bids 11 a.m. EST)
Southern
(Offering
to
-.
-
'l
(Wednesday)
13
March
—...I/
Corp.
-
preferred stock. Price—At par ($3 per share).
Proceeds — To open and equip two new supermarkets.
Office—20 "O" St., S. E., Washington, D. C. Underwriter
•«
-
Commonwealth Edison Co._____^._2_l_i.
(Bids to be invited) $50,000,000 -
(Tuesday)
19
February
i
.
March 12
Fuller & Co. $1,000,000
D.
*
$745,300
Inc.i
Corp.Class A Common
Acceptance
Tower
Oswald,
Clowes &
(Smart;
of common stocfk (par 10
Comment
1,507,304 sharea
vertible
Washington, DC.
Ford Gum & Machine Co., Inc. (3/15)
Dec. 18 (letter of notification) $250,000 of 6% first mort¬
gage bonds due 1962 to 1967, inclusive. Price—100%- ol
principal amount. Proceeds—For machinery and work¬
ing capital.. Office—Hoag and Newton Sts., Akron, N. Y.
Business—Manufacturing chewing jgum and self-service
(Central
stock.
Office
working capital.
—
Debentures
& Webster
securities Corp) $1,750,000
1115 South Washington St.,
Dixilyn Drilling Corp...
Underwriter—Sterling Securities Co., Los
V
New York
Jan. 14 filed 426,988 shares of common A stock (no par)
and 1,537,500 shares of common B stock (par $1). Pro¬
ceeds—To the Attorney Geenral of the United States.
Underwriter—To be determined by competitive bidding
Probable bidders: Blvth & Co., Inc.; Kuhn, Loeb & Co.,
Lehman Brothers and Glore, Forgan & Co. (jointly);
Merrill Lynch, Pierce, Fenner & Beane and Eastman
Dillon, Union Securities & Co. (jointly).
No date has
Marion, Ind.
«
Union
.
Angeles, Calif.
General
set.
been
~
General Credit,
t
* ;'
.
Inc., Washington, D.
'
(tee Higginson
$2,000,000 of 6% subordinated sinking fund
1971, with detachable warrant!
purchase 160,000 shares of participating preference
stock, to be offered in units of $500 of debentures and 40
warrants.1 Price—$500 per unit. Proceeds—For expan¬
New
(Exchange
captal. Underwriter—None
Offering to be made through selected dealers.
^ General Public Utilities Corp. (3 11)
6 filed 646,850 shares of common stock
.
named
M. Bylle&by
(H.
(Offering
(Offering "c
of America, Inc.
operation; toincrease the number of
working capital. Office—41. Stukely St.,
if Hilo Electric Light Co.,Ltd.,KHo, Hawaii .(3/5)
51,380 shares bf. comi/idri ^tock Cpar $20), of
be offered for subscription
by common stockholders of record March 5, 1957 at the
rate of two new shares for each seven shares held; rights
to expire on or about April 6, 1957. ; Any-unsubscribed
scares plus the remaining 6,000 shares to be offered to
employees, and the balance, if any, to the general pubiic.
shares are to
whieh 45,320
Price
Proceeds
To
bank loans and for expansion and construction
—
repay
To be supplied by
program.
amendment.
Underwriter—None.
convertible pre¬
ferred stock, series A (par $5) and 2,476,116 shares of
common stock (par 60 cents), of which all of the pre¬
ferred
and
be offered
shares
763,011.3
of
common
stock
are
to
for
Stanley# Co.
S55.087.300
•
A'.
* ?
Continue don page 36
Houston
EST) $50,000,000
a.m.
(Thursday)
....Equip. Trust Ctfs.
Penn
tOffering to
Bonds
•
27
(Wednesday)
Missouri
/
Portland Cement Co....
(31yth &
'
•
442,114 shares
invited) $250,000,000
Co.," Inc.) 101,233 shares
(Thursday)
March 28
invited) $6,000,000
(Wednesday)
April 3
.Bonds
United Gas Corp..
;
,
*
(Bids noon EST)
February 28
.
935.000,000
11
(Bids
(Monday)
(Bids to be invited)
(Eids
J±r,
Ry.^—..Equip/Trust Ctfs,
Louis
(Goldman, Sachs &
Co. and R.
Cincinnati, New Orleans &
J
about $2,700,000
Texas Pacific Ry.
Equip. Trust
March
Transition
Metals &
(M.
1
(Friday)
Chemicals, Inc
(3. Gerber,
Ihc.) $500,000
May 9
11
(Bids
,
(Offeriag to
.
March 4
(Monday)
Power Co
stockholders—bids to be invited >
Common
549,3^4 shares
EDT) $14,500,000
(Tuesday)
^Debentures
Co
11:30 a.m. EST)
June
..Common
4
to be
11
Co.*.
Common
—
invited) 500,000 shares
6
Georgia Power Co
(Bids
$15,000,000
(Tuesday)
Virginia Electric & Power
(Bids
Boiala
—
a.m.
June
Consumers
(Thursday)
Co.
National Fuel Gas
Ctfs.
invited) about $2,000,000
(Bids to be
May 28
Debentures
$8,000,000
W. Presspvich & Co.
„
(Monday)
May 6
(Bids
y
$3,585,000
(Tuesday),
be invited)
to
y„-
——^Equip. Trust Citfs.
Ohio RR
Minneapolis & St.
—Bonds
—
EST) $6,000,000
a.m.
April 15
Baltimore &
.Common
(Thursday)
April 11
Mississippi Power Co
Alabama Power
(Thursday)
^
Columbia Gas System, Inc...^.
(Bids tc be invited) 1,506,000 shaies
Potomac
(Dillon,
..Bonds
Public Service Inc.—-
Common
Electric Power Co
—
Preferred
Read & Co. Ihc, and Johnston, Lemon # Co.) $15,000,00;)
V
Bonds
& Telegraph Co
April 23
——Common
American Natural Gas Co.,—...
*6fferine fci •stockholders—*no underwriting)
—Common
.
(Tuesday)
26
American Telephone
^k.
February
.
underwriting) about 612,300 shares
stockholders—no
EST) $5,000,000
Electric Co.———
Common
stockholders—bids noon EST* 528,000 shares
$o,540,0Ui)
(Monday)
Lighting & Power Co
Offering to
-Bonds
Electric Co.__^
.
West
Inc..-Debs.
in exchange for Mount Vernon Co. preferred
stock on the basis of one Holly series A
each of the 406,638 shares of Mount Vernon
11
(Bids to be invited)
New Orleans
(Bids li a.m. EST) $40,000,000
common
share
Eoston Corp.)
Davstrom, Inc.
Holly Corp., New York
'
Jan. 25 filed 406,638 shares of 50-cent
(Bids
(Tuesday)
26
Southern Indiana Gas &
/
;
.
- " •
' (Bids'J! a'.«i.
'
Co.——Debentures
Electric & Gas
Public Service
underwritten by
336,085 shares
Telephone Co
,
"V
Feb.. 7 filed
and
"*
•-
;
—Commoifii
invited).89,322 shades
stockholders—Bids may be
(Bids to be
Co. of New York,
First
The
and
Illinois Bell
stores; and
Providence,
■•."'/..'Vf
N. Y.
to
Common
stockholder.-*—underwritten by Morgan
Underwriter—Bruns, Nordemab &. Co., New York,
R.. I.
400,000 shares
Peabody- & Co.)
Consolidated Edison
,
for
(Offering
March
Common
stockholders—to be
to
.
approximately 580,000 shares
Corp.)
Utilities Associates
(Bids to be
(letter of
store
(Offering to
Eastern
(Monday)
Fund, Inc
February
—
; t|*/. .
notification) 240,000 shares of common
stock e(par 30 cents) of which' 86,619 shares are being
sold pursuant to outstanding - warrants. Price—$1.25, per
share; Proceeds— For additional discount department
shares
Electric & Gas Co..
Kidder.
about March 11.
-
.-t"" W
(Wednesday)
20
March 25
Class A
& Co. Inc.) 200.000
(Fund Corp. i
South Carolina
■
Electric Corp—-Common
stockholders—to be underwritten by The First
Preferred
——
& Co.) $750,000
February 25
Resources
Allied
„
,
RR...Equip. Tr. Ctfs»
^7,500^00
Baltimore Gas &
i
Subscription warrants are expected
Price—To be sup¬
plied by amendment. Proceeds — To repay bank loans
and for further investments in domestic- subsidiaries.
Underwriter
None,; Merrill Lynch, Pierce, Fenner &
Beane, New York, will act as clearing agent y/
Gob Shops
(Bids to be*-invited)
Southern Ry.—
Factors Corp..
Hubshman
equivalent thereof.]
Jan. 21
+
and F. S.
(Thursday)
(Kidder, Peabody
[Each holder of .less than J 5; shares will, in lieu of the
otherwise deliverable to him, receive the cash
or
Common
Co.—
$29,000,000
dealer-managers) 819,000 shares
as
Co~
Elyria Telephone
warrant
on
be invited)
Burlington & Quincy
Chicago.
March 21
offered for
to be mailed
to act
Co,
&
February 21
subscription by common stockholders of
record March 8, 1957, at the rate of one new share for
each 15 shares held: rights to expire on March 29, 1957.
be
England Electric System
offer—Patne, Webber, Jackson & Curtis
Moseley
(par 85) to
Feb.
Corp.) 100,000 shares
(Tuesday)
March 19
Appalachian Electric Power
Boston
Common
Nicol, Inc..^
Morningstar,
Aug. 17 filed
by G. H.
■'*
.
$2,000,000
Savannah Electric & Power Co.....
/.Common
(Offering to stockholders—to be underwritten by The
First Boston Corp. and Stone <fc Webster
,
Securities Corp.) 163,334 shares
|
March
Class A
44,318 shares
Walker.& Co.)
'
C.
working
Preferred
Securities Corp.)
shares
230,000
Merchants Acceptance Corp
(Offering to stockholders—to be underwritten
.
t
$250,000
underwriting)
(No
(Bids to
Loyal American Life insurance Co,
Common
(Offering to stockholder's—to be underwritten DyTJ. H: * ■:' »
Goddard & Co., Inc. and Thornton,
Mohr & Farish)
to
and
shares
250.000
debentures,1 due Sept. 1,
sion
Raffensperger, Hughes & Co.)
and
Co:
&
Forgan
(Glore,
"
Savannah Electric & Power Co
(The First Eoston Corp. and Stone & Webster
Common
Indianapolis Water Co
Aniline & Film Corp.,
Class A
—
(Hemphill, Noyes & Co.. and Dallas
Securities Co.) 930,000 shares
Inc.r-*
^—Bonds
Machine Co., Inc.—
Co:) $2,600,000
Central Electric & Gas Co..
(PainSf'tV'ebbbr, Jackson & Curtis and Stone
(letter of notification) 300,000 shares of common
Price—At par ($1 per share). Proceeds — For
Dec. 3
Ford Gum &
(Friday)
15
March
Inc.—.Debentures & Coriimon
.
Inc.
to
;
/
.
.Common
Inc
stockholders of ACF-Wrigley Stores,
be underwritten by,Allen & Co.)
to
(Offering
Bonds
.Equip. Trust Ctfsi
invited) $1,860,000
be
Properties,
(Wednesday)
February 20
....
(Bids to
Wrigley
Southerr?%alifornia Edison Co
/•.../
(Bids 8 a.m. PST) $37,500,000
Barnwell Offshore,
(Thursday)
March 14
Ann Arbor RR
25,000 shares
Inc.)
Co.
(Bear, Stearns &
Underwriter—None.'
Fruit Juices,
Republic
150,000 shaies
Telegraph Co.._Common
Inter-County Telephone &
—Rudd, Brod & Co.,
machines.
Inc.)
Becker & Co.
G.
(A.
....Common
Specialties, Inc
Danly Machine
a.m.
(Thursday)
—
EDT) $15,500,000
-
26
(808)
The
Continued
from
page
Leslie
35
Productions, Inc.
(letter of notification) 30,000 shares of common
stock (par $1). Price—$2 per share. Proceeds—For
spe¬
,
Jan.
preferred stock and IVz shares of HoJly common stock
for each of the 305,204.52 shares of Mount Vernon com¬
Of
stock.
mon
shares
to
are
the
210,000
remainder,
offered
be
certain
to
shares of Van Dorn Iron Works Co.
six-for-one
offered to
basis;
38,333
Holly
Holly
holders
common
of
35,000
stock
common
on
shares will
common
finders, 60.000 shares to certain ven¬
dors
of
property; 1,016,595 shares will be reserved
against conversion of preferred stock; and the remainbag 388,176 are to be reserved for possible issuance at a
future date in exchange for 64,696 shares of Van Dorn
'
stock.
common
Hub Oil
Underwriter—None.
Co., Denver, Colo.
(par 10 cents). Price-^$1 per share. Proceeds—
To buy leases; for exploration and drilling.
Office—
413 Fir§t National Bank Bldg., Denver, Colo.
Under¬
writer—Skyline Securities, Inc., Denver, Colo.
Hubshman Factors Corp.,
Feb.
filed
1
Price—To
Henry
New York
shares of
200,000
class
A
(2/21)
(par $1).
Proceeds—To
stock
be
supplied by amendment.
Hubshman, President, who is
M.
stockholder.
Underwriter—H.
and
M.
the selling
Byllesby & Co.; Inc.,
Chicago.
♦
Proceeds—Together with other funds to repay
of $20,000,000 incurred for construction
pro¬
debt
Corp., New York.
—
•
Loyal American Life Insur. Co., Inc. (2/20-25)
Sept. 28 filed 230,000 shares of common stock (par $1)
to be
offered for
Indianapolis Water Co., Indianapolis, l?td.
Jan. 31 filed
IP rice
250,000 shares of
(2/20)
stock
common
(par $10).
Proceeds—To
To be supplied by amendment.
selling stockholders. Underwriters—Glore, Forgan & Co.,
Kew York; and Raffensperger, Hughes &
Co., Indian¬
apolis, Ind.
—
Inter-County Telephone & Telegraph Co.
(2/19)
Jan. 31 filed 25,000 shares of common stock
(par $12.50).
Price—To be supplied by amendment. Proceeds — For
reduction
of
accounts
payable
and
for
payment
of
a
(portion of the company's 1956 taxes due in 1957. Office
.—Fort Myers, Fla. Underwriter—Central Republic Co.
Inc.;, Chicago, 111.
increase capital and surplus.
Underwriters—J. H.
Goddard & Co., Inc.,
Boston, Mass., and Thorntoh, Mohr
& Farish, Montgomery, Ala.
Macy
(R. H.)
be
to
Washington, D. C.
Sept, 28 filed $1,000,000 of time certificates, series B, C
'
end D. Price—At 100% of principal amount. Proceeds—
iPor working capital. Underwriter—Johnston, Lemon &
CoM Washington, D. C.
International Capital Corp., Des Moines, Iowa
flov. 29 filed 370,000 shares of common si^ck
(par 10
cents), of which 185,000 shares are to be offexrd by The
ISquity Corp. on a share-for-share basis in exchange for
Equity Corp.
shares
by
chares
of
International
share of Financial
one
cial
to
are
stock, and the remaining 135,000
General Corp. on a basis of 1%
common
Financial
common
receive the
tional common
stock
common
in
stock
stock.
in
exchange for
Equity and Finan¬
185,000 shares each of Interna¬
exchange for all the outstand¬
ing shares of common stock of Investors Financial Corp.
and Group Equities, Inc. International has been
informed
that 142,000 shares of Equity common owned
by Fre¬
mont
Corp. will be tendered in acceptance of the Equity
exchange offer. Underwriter—None.
International Duplex Corp., San Francisco, Calif.
Dec. 21 filed 500,000 shares of
eent).
common stock
(par one
share.
Proceeds—To equip and
launderettes and for working cap¬
Underwriters—Names to be supplied by amend¬
Price—$1
establish five
ital. '
per
super
ment.
* Mason Mortgage Fund, Inc., Washington, D. C.
Feb; 8 filed $1,000,000 of W note certificates. Price—At
par (in denominations Of $250 each).
Proceeds—For in¬
vestment.
(F. L.)
iV Jorgensen
(3/6)
4
*
Co.
11
filed
which
(Earle M.)
I
Co., Los Angeles, Calif.
350,000 shares of
100,000
shares
are
common
to
company and 250,000 for selling
To be supplied by amendment.
be
for
stock
stockholders.
repay
short-term
incurred for working capital. Business
and distribution of steel and aluminum
of
the
Price—
—
bank
loans
Warehousing
products.
Under¬
writer—Blyth & Co., Inc., Los Angeles, Calif., and New
York, N. Y.
Juneau & Douglas Telephone Co.
Jan. 24 (letter of
notification) $295,000 of 6%. 15-year
^debentures due 1972.
Price
At face amount (in de¬
nominations of $1,000 each). Proceeds
For additions
and improvements. Office—139 W. Second
—
—
,neau, Alaska.
Wash.
Street, JuUnderwriter—Grande & Co., Inc., Seattle,
15 filed
263,048 shares of common stock (par $1)
€o be offered for subscription
by common stockholders
'
and holders of certain
outstanding stock purchase war¬
basis of one shafre for each share
held, or
for each share subject to purchase under such
warrants,
rants on the
Mce—$3.25
a
-
per share.
Proceeds—To equip and stock
warehouse and any new stores that
may be acquired.
^Underwriter—Peters, Writer
ver,
the
maximum
a
stock
by class A
on
Acceptance Corp.
filed
(no
common
basis
of
par)
of
to
44,318
be
for
new
share
for
of
class
three
loan
brtffiarily to expand business in the
offices of company's subsidiaries or
acquire additional offices.
Office
Underwriter—G. H. Walker & Co.,
—
New
38
to
or
open
for each Lynn share.
Jackson
Colo.
2,500,000 shares of common stock (par
one cent).
Price—$1.50 per share. Proceeds—To acquire
for $2,400,000 the Chavin
lead-zinc-copper-silver mine
located in South Central Peru, and for
general
corporate
Otis, Inc., New
Offering—Postponed.
★ Minnesota Power & Light Co.
(3/11)
$12,000,000 of first mortgage bonds due 1987.
To repay bank loans and for
construction
Underwriter—To be determined
—
by competi¬
Stuart & Co.
bidding. Probable bidders: Halsey,
Inc.; Kidder, Peabody & Co. and Merrill
Lynch, Pierce.
Fenner & Beane (jointly);
White, Weld & Co., Shields
& Co. and Equitable Securities
Corp. (jointly); Lehman
Brothers and Drexel & Co.
(jointly); Kuhn, Loeb & Co.;
Eastman Dillon, Union Securities & Co.
and Salomon
Bros. & Hutzler
(jointly).
Bids
—
11.
Tentatively planned
Dec. 26 filed 1,600,000 shares of
capital stock (no par), of
are subject to an offer of
rescission.
which 708,511 shares
per
share.
provide for general
Proceeds—For completion of
plant,
creditors and for working
Office—Jackson, Miss.
capital.
Underwriter—None, offering
-
& Christensen, Inc., Den¬
★ Missouri Portland Cement Co.
Feb. 7 filed
to
(2/27)
—
and
San Francisco.
Morningstar, Nicol, Inc., New York (2/20)
Jan. 29 filed 100,000 shares of common
stock (par $1), of
which 77,858 shares are to be sold for
company's ac¬
22,142 shares for account of selling stockhold¬
Price—To be supplied
by amendment. Proceeds—
count and
ers.
-
S.
Moseley
&
Co.,Vboth
of
New England Power Co.
(2/18)
Jan. 15 filed
$10,000,000 of first mortgage bonds, series
G, due 1987. Proceeds—To
repay bank loans and for
new
construction.
Underwriters—To be
determined by
bidding. Probable bidders: Halsey, Stuart
Inc.; Kuhn, Loeb & Co., Salomon Bros. &
Hutzler,
Eastman
Dillon, Union Securities & Co. and
competitive
& Co.
Wood,
Struthers & Co. (jointly); Lehman
Brothers; The First
Boston Corp.; Equitable Securities
Corp.; Merrill Lynch,
Pierce, Fenner & Beane, Kidder,
Peabody & Co. and
White, Weld & Co. (jointly). Bids—To be received
up to
noon
(EST) on Feb. 18 at 441 Stuart
Street, Boston 16,
Mass.
24
filed
'
•
.
,
Shipbuilding Corp., Camden, N. J.
Exchange
stock
common
/
(par $1).
prevailing price on the New
at the time of sale.- Proceeds—To
Under-,
par
share).
cumu¬
($4 per
Proceeds — To pay off notes issued in
acquiring
the shares in subsidiary
companies and for working cap¬
ital. Office—4000
Montgomery
Drive, Santa Rosa, Calif,
Underwriter—None.
Ohio Edison Co.
Jan. 3 filed 580,613 shares
of
common
being offered for subscription by
of record Jan.
31, 1957 at the rate
stock
common
of
one
(par $12)
stockholders
new
each 10 shares held
share for
(with an oversubscription
privilege);
rights to expire on Feb. 15, 1957.
Price—$46.50 per share.
Proceeds—For additional investment in
stock
common
of
Pennsylvania Electric Co.,
struction
won
program.
subsidiary, and for con¬
Underwriter
White, Weld & Co.
a
—
award of this issue
on
Jan. 30.
'
Ohio Power Co.
Sept. 20 filed 60,000 shares of cumulative
preferred stock
(par $100). Proceeds—For construction
,
program. Under¬
writer—To be determined by
competitive bidding. Prob¬
able bidders: The First Boston Corp.;
Blyth & Co., Inc.;
Kuhn Loeb & Co.; Eastman
Dillon, Union Securities & Co.
and Salqrtton Bros. &
#utzler
(jointly); Harriman Ripley
Co.,'Ibc; and Stoife & Webster Securities Corp.
(joint¬
ly); Lehman Brothers; Bids—The two received
&
a.m.
up to 13
(EST)
on
Oct. 30
were
rejected.
Orefield
Oct. 15
Mining Corp., Montreal, Canada
filed 900,000 shares of
capital stock (par $1), of
which 200,000 shares
are now
outstanding. Price—To be
supplied by amendment. Proceeds
For exploration
costs.
Underwriter—To be named later. Michael
Tzo—
panakis, of Miami, Fla., and Denis
Colivas, of Montreal,
Canada, are large stockholders.
-At Paradise
Valley Country Club, Inc.
(letter of notification) $300,000 of first
mortgage
sinking fund 5% bonds due Jan. 1, 1969. Price—At
par
(in denominations of $500 and $1,000
each). Proceeds—
build a club.
Office—Scottsdale, Ariz. Underwriter
To
—None.
.
Paradox
Production Corp., Salt Lake
City, Utah
Feb. 4 filed
1,000,000 shares of common stock (par
$1).
Price—$1.25 per share. Proceeds—For
and
101,233 shares of capital stock (par $12.50).
Price—To be supplied by amendment.
Proceeds
To
selling stockholders. Office—St. Louis, Mo. Underwriter
—Blyth & Co., Inc., New York
Lynn
shares
Feb. 6
Mississippi Valley Portland Cement Co.
Price—$3
of
NEES
Dealer-Managers—Paine,vWebber,
F.
and
Boston, Mass.
filed
for March
(par $1)
stock
two
* Northwest Financial Corp,
—
tive
of
Feb. 6 (letter of
notification) 70,000 shares of 6%
lative convertible preferred stock.
Price—At
—
program.
Curtis
basis
writer—None.
Reoffering is
expected sometime during the first six months of 1957.
• Mineral
Projects-Venture F. Inc., Madison, N. J.
Dec. 14 filed $2,500,000 of
Participations in Capital as
Limited Partnership Interests. Price
In $25,000 units.
Proceeds
To acquire leaseholds and for
drilling of
initial or exploratory wells.
Underwriter—Mineral Proj¬
ects Co., Ltd.,
Madison, N. J. Statement effective Feb. 1.
Feb. 8 filed
&
for capital
the
working capital and general corporate
purposes.
Worcester, Mass.
Providence,. R. I.;
&
cn
ing preferred stock and 7,500 shares of
common stock.
Price—At par ($10 per
share). Proceeds
To liquidate
a
bank loan of
$178,635; increase inventories; and for
by competitive bidding.
Probable bidders;
Stuart & Co. Inc.; The First Boston
Corp.;
Blyth & Co., Inc.
Bids—Three bids were received on
Aug. 1, all for 434s, but were turned down.
Gearhart
exchange
Co.
—
existing
Halsey,
—
in
Electric
Dec. 27 filed 75,000 shares of
5% cumulative participat¬
determined
Underwriter
offered
&
Nic-L-Silver Battery Co., Santa
Ana, Calif..
shares
York, N. Y„; and St. Louis, Mo.
purposes.
"
Merritt-Chapman & Scott Corp., the selling stockholder.
Underwriter—None.
A
bonds due 1976.
Proceeds—To pay off short term bank
loans and for construction
program. Underwriter—To be
York.
be
211,254 shares of
Price—To be related to the
Michigan Wisconsin Pipe Line Co.
July 2, 1956 filed $25,000,000 of first mortgage pipe line
22
England Electric System (2/20)
819,000 shares of common stock
./
held; rights to expire on March 5. Price—To be supplied
by amendment. Proceeds—For working capital, to be
used'
•
(Province
filed
New York
subscription
Feb. 15, 1957
each
•
Brunswick
York Stock
shares
offered
3
Gas
Jan.
(2/20)
stockholders of record
one
to
—
and
be made through
company's own agents.
King Soopers, Inc., Denver, Colo.
rJan.
30
common
Proceeds
(par $1),
account
Proceeds—Together with
$4,000,000 bank loans, to
.
officers
Merchants
June
Oct. 4 filed $3,000,000 of 6% convertible,
debentures due
BTov. 1,1966. Price—100% of
principal amount. Proceeds
—-To pay short-term loans and for
working capital. Un¬
derwriters—McLaughlin, Cryan & Co. and Gearharf *
Otis, Inc., both of New York. Offering—Date indefinite.
Feb.
Underwriter
None.
Offering to be made
employees of this company and
of its affiliate. Mason
Mortgage & Investment Corp.
through
New
Dec.
Minerals, Inc., New York
Jacobs
of
offered for
subscription by common stockholders
1, 1957 at the rate of one new share for
each 10 shares held; rights to
expire on March 13. Price
—To be supplied by amendment. Proceeds—For
work¬
ing capital and general corporate purposes. Underwriter
—Clark, Dodge & Co., New York.
•
•
18 filed
of record March
Nashville,
Indefinitely
"" "
~
—
of)
Dec. 14 filed
$12,000,800 of 25-year sinking fund deben¬
tures due Jan.
1,1982. Price—To be supplied
by amend¬
ment.
Proceeds—To be advanced to The
New Bruns¬
wick Electric Power
Commission to repay bank loans.
Underwriter—Halsey, Stuart & Co. Inc., New York and
Chicago. Offering—Temporarily
delayed.
—To
Jan.
International Bank, of
New
Corp.;
Offering
postponed.
subscription by common stockholders
15, 1956 at the rate of one new share for
each three shares held (with an
oversubscription privi¬
lege). Price—To be supplied by amendment. Proceeds
•
Securities
Tenn., and New York, N. Y.
of record Oct.
Jan.
.
National Old Line Insurance Co.
Nov. 15, 1955 fKed
50,000 shares of class A common stock
(par $2) and 50,000 shares of class B
common
stock
(par $2). Price—To be supplied
by amendment. Proceeds
—To selling stockholders.
Office — Little Rock, Ark.
Underwriter
Equitable
per
& Co., Inc.
$12,281,100 of convertible subordinated de¬
bentures due Feb. 1, 1977,
Illinois Bell Telephone Co. (2/26)
being offered for subscription
Feb. 6 filed $40,000,000 of first mortgage bonds, series E,„ .by common stockholders of record Feb.
8, 1957 on the
due March 1; 1988. Proceeds—To repay short-term bor¬
basis of $100 of debentures for each 14
shares of stock
rowings and for construction program. Underwriter—-To
held; rights to expire on Feb. 25, 1957. Price—100% of
Ue determined by competitive bidding.
principal amount (flat). Proceeds—For
Probable bid¬
working capital
ders: Halsey, Stuart & Co. Inc.; Morgan Stanley &
and general corporate
Co.;
purposes.
Underwriters—Lehman
Brothers and Goldman, Sachs &
Kuhn, Loeb & Co.; Glore, Forgan & Co. and Eastman
Co., both of New York.
Dillon, Union Securities & Co. (jointly). Bids—Expected
^Manning, Maxwell & Moore, Inc. (3/1)
to be received up to 11 a.m.
(EST) on Feb. 26.
Feb. 3 filed 71,390 shares of common stock
(par $12.50)
Kew York
National Fidelity Insurance Co.
(letter of notification) 33,000 shares of
common
stock (par $1.25) to be
offered to stockholders on
the
basis of one share for each seven
shares held.
Price—$8
per share.
Proceeds—For working capital.
Office—314
Pine St.,
Spartanburg, N. C. Underwriter—None.
filed
gram. Underwriter—The First Boston
Dec. 18 (letter of notification) 290,000 shares of common
stock
-
-
(3/5)
154,834 shares of cumulative convertible
prefererd stock to be offered for subscription by common
stockholders of record March 5, 1957 on the basis of one
share of preferred stock for each 40 common
shares held;
rights to expire on March 25. Price—At par ($100
bank
Hawthorne,
Underwriter—Lee Hig-
Nov. 30
★ Lone Star Gas Co.
share).
Thursday, February 14, 195^
.
and for working capital.
ginson Corp., New York.
working capital. Oftice
—Columbia, S. C.
Underwriter—Alester G.
Furman
Co., Inc., Greenville, S. C.
13
,
N. J.,
cial building, equipment and for
Feb,
.
For construction of
plants in California and
14
a
be
certain
Iron Works
Commercial and Financial Chronicle
general corporate
oil and gas properties.
drilling test wells
Business—To develop
Underwriter—Market Securities,
purposes.
Inc., Salt Lake City, Utah.
•
.
Phillips Petroleum Co.
Jan.
16
filed $171,720,200 of 4*4%
convertible
nated debentures due 1987
being offered for
by common stockholders of record Feb. 7
$100 principal amount of debentures for
of stock
100%
subordi¬
subscription
on
the basis of
each
20 shares
held; rights to expire on Feb. 25, 1957. Price—
of principal amount
(flat). Proceeds—To
repay
'
Volume 185
*
Number
5612
.
.
The Commercial
.
about $86,000,000 of short-term bank loans and for
corporate
purposes.
Underwriter.
<•
—
Sperti Products, Inc., Hoboken, N. J. (2 18-21)
filed $745,300 of 6% debentures due March 1,
1972 and 14,906 shares of common stock (par $1) to be
offered in units of a $100 debenture and two shares of
other
Jan. *29
First Boston
The
Corpj,-New York.
Pioneer Finance Co.
(letter of notification) 12,000 shares of common
(par $1). Price—At market (estimated at $3.37%
to $3.87% per share). Proceeds—To a selling stockholder.
Office
1400 National Bank Bldg., Detroit 26, Mich.
shares
stock
the
—
★ Plymouth Fund, Inc., Miami, Fla.
Feb. 5 filed 500,000 shares of capital
writer
Proceeds—For
market.
Plymouth
—
Bond
Jan.
Electric
18 filed 300,000
1957
,
Miami, Fla.
—
program.
by amendment.
Underwriters —
Dillon, Read & Co. Inc., New York and Johnston, Lemon
& Co., Washington, D. C.
A- Princeton Research Park, Inc.
Feb. 11 (letter of notification) 19.360 shares of common
stock
(no par). Price — $12.50 per share.
Proceeds—
Together with other funds, to construct office building
for occupancy by Opinion Research Corp., the estimated
cost of which is $550,000.
Office—44 Nassau St., Prince¬
Underwriter—Ncne.
ton, N. J.
Inc.;
vision
releases.
Business—Tele¬
working capital.
for
and
Louisville,
Texas
Underwriter—E.
L.
Aaron
20,0,000 shares of common stock (par 25
Price—To be supplied by amendment. Proceeds
exploration, development and operation of oil and
properties. Underwriter—Perkins & Co., Inc., Dallas,
cents).
—For
Tex.
Samson
Uranium,-Inc.,^ Denver, Colo.
Aug. 21 (letter of notification) 25,000,000 shares of capi¬
tal stock. Price—-At par (10 cents per share). Proceeds
—For core drilling, including geological research and
core
assays; for mining shaft; to exercise purchase of
additional properties; lor working
corporate purposes. Underwriter —
Indiana State Securities Corp. of Indianapolis, Ind., for
offering to residents of Indiana.
option agreement
capital and other
>
on
Security Electronics Corp; : (2/15)
Jan. 11 (letter of notification) 263,750 shares of common
stock (par five cents). Price—$1 per share. Proceeds—
To complete design of an improved model of the Security
Check Register (now in use); to purchase 500 such units;
and for working capital and general corporate purposes.
Office—589 FifttTAve;, New York. Underwriter—Foster-
Mann, Inc., New York.
'*
Socoity Mobil Oil Co., Inc.
4,379,758 shares of capital stock (par $15)
being offered for subscription by stockholders of record
Jan.
30, 1957 on the basis of one new share for each 10
held; rights to expire on Feb. 19, 1957. Price—
Proceeds—For exploration and devel¬
opment costs and for plant expansion.
Underwriter—
Morgan Stanley & Co., New York.
shares
$45.50 per share.
South Carolina
Electric & Gas Co.
(2/25)
Feb. 4 filed 336,085
shares of common stock (par $4.50)
to be offered for subscription by common stockholders
of record about Feb. 25, 1957 on the basis of one new
share for each 10 shares held (with an oversubscription
privilege); rights to expire on or about March 11,1J57.
Price—To be supplied by amendment.
Proceeds—For
construction program. Underwriter—Kidder, Peabody &
Co., New York.
Southern
Jan.
filed
22
California
Edison
Co.
$37,500,000 first and
mortgage
bonds, series H, due 1982. Proceeds — To repay bank
loans
and
to
help
finance
construction
program.
Underwriter—To be determined
Probable
by competitive bidding.
bidders:
Halsey, Stuart & Co. Inc.; The First
Dean Witter & Co. (jointly); Blyth
& Co., Inc.; Kuhn, Loeb & Co.
Bids—To be received
up to 8 a.m. (PST) on Feb. 19 at 601 West 5th St., Los
Angeles, Calif.
Boston
Corp. and
Southern
Counties
Gas
Co.
of
Ca!iforn;a
(3/6»
Feb. 4 filed $15,000,000 of first mortgage
bonds, series B,
due 1982.
Proceeds
To repay indebtedness to parent,
Pacific Lighting Corp. (about $9,200,000) and for con¬
struction and expansion program.
Underwriter—To be
—
determined
by
competitive
bidding.
Probable
bidders:
Co. Tnr- • White, Weld & Co.; The First
Boston Corp.; Blyth & Co., Inc.; Merrill Lynch, Pierce,
Fenner & Beane.
Bids—Tentatively expected to be re¬
Halsey, Stuart
ceived
on
March
Southern
6.
Indiana
Gas
Proceeds—To
& Electric
Co.
(2/26)
first mortgage bonds due March
bank
loans and for con¬
struction program.
Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Equitable Securities Corp.; Kuhn, Loeb & Co.
and Salomon Bros.. & Hutzler {jointly); Blair & Cc.
Incorporated; Kidder, - Peabody ~nSi Co.; Eastman Dillon,
Union Securities & Co.; The First Boston Corp.; White,
.Weld & Co. and Shields & Coif jointly). Bids—Tentalively expected to-be received* »p to 11 a.m. (EST) on
f Feb. 26 at offices of CommerciaUServices, Inc., in New
1987.
Business—A
repay
>
*
nr*
V.'
public; and the underwriter will be
Office—Philadelphia, Pa. Underwriter—Mortimer
& Co., Inc., New York. Offering—Date
poses.
Burnside
Vanderbilt Mutual Fund,
?** ^5
Thermoray Corp.
fi i c
(letter of notification) 380,000 shares of com¬
mon stock
(par 10 cents). Price — 75 cents per share
Proceeds—For inventory, working capital, etc. Businest
—Electrical heating. Office—26 Avenue B, Newark, N. J
Underwriter—Eaton & Co., Inc., New York.
June
29
Guarantee
Title
&
(par $8) of
being offered for subscription
by stockholders on the basis of one new share for each
eight shares held as of Jan. 22, 1957; rights to expire
on
Feb. 19.
The remaining 26,152 shares are being
offered, together with cash, in exchange for stock of
Abstract
&
Title
Insurance
Corporation of Buffalo,
Rochester and Lockport, N. Y., on the basis of $15.25 in
cash and 4/10ths of a share o£ Title Guarantee stock in
of
Ltd.
(Canadian) of subordinated
debentures
3,750,000 shares of common
stock (par $l-Canadian)~to be offered in units of $100
of debentures and five shares of stock. Price—$156 per
unit.
Proceeds—For new construction. Underwriters—
In United States: Lehman Brothers, Stone & Webster
Securities Corp. and White, Weld & Co. In Canada: Nesbitt Thomson & Co. Ltd.; Wood, Gundy & Co. Ltd.;
McCloud, Young, Weir & Co.. Ltd.; and Osier. Ham¬
mond & Nanton. Ltd. About $31,250,000 of the securi'.ies
Trans-Canada Pipe Lines,
filed
26
Nov.
$75,000,000
due 1986 and
will be offered in the United
*
today (Feb. 14).
700,000
filed
24
South, Mount Vernon, N. Y.
West Penn Electric Co.
Drilling, Inc. (2/15-20)
of common stock (par
shares
stock (par $5)
stockholders of
record Feb. 26, 1957, on the basis of one additional share
for. each 16 shares held; rights to expire on March 14.
Price
To be named by company (sufficient to raise
about $11,000,000 or $12,000,000). Proceeds—To increase
Jan.
filed
22
Metals & Chemicals,
shares
1,615,500
of
Inc.
—
investments in subsidiaries.
i. i!
i
_i_.
i
....
~
^
common
and
stock
i-v* w\
n
a
other facilities; for equipment; and
Office—Wallkill, N. Y. Underwriter—
M. S. Gerber, Inc., New York.
Tri-State Rock Material Corp., Leesburg, Va.
Nov. 28 filed 500,000 shares of 6% cumulative convertible
preferred stock. Price—At par ($1.50 per share). Pro¬
ceeds
For asphalt plant, equipment, working capital
and other corporate purposes. Underwriter—None.
tion
of
plant
and
working capital.
—
Phoenix, Ariz.
11 filed 50,000 shares of common stock (par $10) to be
offered for subscription by common and preferred
Paradise, Inc.,
Turf
Jan.
first
Corp., Boston, Mass.
Wildcat Mountain
cumulative
of common
to be offered in units of a $400 deben¬
shares of-stock. Price — $500 per unit.
13 filed $800,000 of 6% subordinated
debentures due Dec. 1, 1976, and 6,000 shares
stock
(no par)
three
ture and
capital. Busi¬
Underwriter—None;
offering to be made by -officers and agents of company^
construction
Proceeds—For
Wilson & Co.,
Price—$15 per share. Proceeds—To retire
outstanding preferred stock. Underwriter—
Proceeds
ment.
Management Co., New York
Jan. 29 filed 400,000 shares of common
—
Corp.
of
redeem
To
presently outstanding
Indefinitely postponed.
Alabama
it
21
Jan.
Power
was
Co.
stock (par $1).
Name—Stockholders will vote
to Development
changing name of company
(5/9)
announced
company
plans to issue and
$14,500,000 first mortgage bonds. Proceeds—To re¬
bank loans and for new construction. Underwriter
sell
pay
—To
determined
be
Halsey,
by
Stuart
competitive bidding. Probable
& Co. Inc.; Eastman Dillon,
Securities & Co., Equitable
Union
Securities Corp. and
Drexel & Co. (jointly); Lehman Brothers; Harriman
..Ripley
&-Ca.-Jner-and"'-Geldman,
Sachs\r & Co.
(jointly);
D1
P.
T
Vi«/1 TY
av
Do
1^ A (TAltlflv \ *
v»
Blyth & Co., Inc.
and Kidder,
Peabody & Co. (jointly);
Stanley & Co. Bids—Expected to be received
to 11 a.m. (EDT) on May 9. Registration—Planned
April 12.
Morgan
up
for
* American Photo Equipment Co.
reported company plans
Feb. 5 it was
of about 200,000
early registration
part for com¬
shares of common stock,
and part for selling stockholders.
York.
pany
Underwriter—
Lehman Brothers, New
& Telegraph Co. (3/26)
authorized a new bond issue
American Telephone
Dec.
19
the
directors
of
$250,000,000. Proceeds — For additions and improve¬
ments.
Underwriter—To be determined by competitive
Probable bidders: The First Boston
Bids
March
Price—$5.50 per share. Proceeds—For working capital.
Underwriters—Sutro Bros. & Co. and Allen & Co., both
To Change
|
Inc.
first mortgage bonds, to repay bank loans and for expansion program.
Business—Meat packing firm. Unr
ierwriters—Smith, Barney & Co.: Glore Forgan & Co.
and Hallgarten & Co., all of New York City. Offering—^
Co.'
None.
on
and working
center.
Aug. 28 filed $20,000,000 of 20-year sinking fund de¬
bentures due 1976.
Price—To be supplied *by ^amend¬
Halsey, Stuart & Co.
15
and
be
Goldman, Sachs & Co. (jointly). Bids—Expected to
received up to noon (EST) on Feb. 26.
bidding.
Feb.
and
,
issued
of New York.
Probable bidders: Carl
Loeb, Rhoades & Co.; The First Boston Corp.
W. C. Langley & Co. (jointly); Lehman Brothers
M.
stockholders.
and
Underwriter—To be deter¬
by competitive bidding.
bidders:
(3/1)
_
/»
528,000 shares of common
for subscription by common
Prospective Offerings
1,126.500 common stock ^
purchase warrants, of which
250,000 shares of stock and 250,000 warrants are to. be
li.
r.V»
nn/I
nun
offered publicly in units of one common share and one
warrant. Price—$2.01 per unit. Proceeds—For construc¬
_f
filed
25
to be offered
25
—
Transition
Underwriter—None.
(2/26)
Offering—Expected
$2 per share. Proceeds — For mobile
drilling platform; reserves for escalation and contin¬
gency charges, etc.
Office—Houston, Tex. Underwriter
—Dallas Rupe & Son, Inc., Dallas, Tex.
Price
cents).
Office—115 MacQuesten Park¬
stock dividend.
10%
way
7 '
Offshore
Trans-Gulf
Jan.
States.
shares
capital stock (par $4). Price—$10 per share. Proceeds
stockholders entitled to receive fractional interest
—To
ness—Mountain recreation
New York.
(N. Y.)
★ Ward Leonard Electric Co.
Feb. 11 (letter of notification) a maximum of 300
Aug.
(2/18-21)
Dec. 7 filed 200,000 shares of class A common stock (par
$1). Price—$5 per share. Proceeds—For working capital.
Office—Houston, Tex. Underwriter—S. D. Fuller & Co.,
Fla.
150,000 shares of common stock (par 50
cents). Price—At market, but not less than $3 per share.
Proceeds—For mining operations. Underwriter—None.
tive Dec. 17.
Acceptance Corp.
Miami,
filed
29
mined
Tower
Inc.,
Sulphur Corp. of America
Venezuelan
The subscription
stockholders becomes effec¬
tive if latter company
acquires at least 85% of the
Abstract stock. The purchase offer will expire on Feb.*
28, 1957.
Price—$14 per share. Proceeds—To acquire
Abstract stock.
Underwriter—None.
Statement effec¬
of Abstract.
Mines,
Diamond
Venezuela
Aug. 31 filed 1,500,000 shares of common stock/ Price—
At par (20 cents per share). Proceeds—For exploration
and mining operations in Venezuela. Underwriter—Co¬
lumbia Securities Co., Inc., of Florida (name changed to
Alfred D. Laurence & Co.), Miami, Fla.
35,750 shares are
exchange for each share
offer to Title Guarantee
Corp., 458
Spring St., Los Angeles 13, Calif.
So.
in
New York
Trust Co.,
61,902 shares of capital stock
filed
21
writer—Vanderbilt Mutual Fund Management
Jan.
Underwriter—None.
Inc., Los Angeles, Calif.
filed 50,000 shares of common stock (par $1);
Price—At market.
Proceeds — For investment. Under¬
Dec.,. 31
npp-diversified closed-end manage¬
ment investment company^
•
Conditioning Corp.
granted options to acquire the remaining 500,000 shares
for reoffer to the public. Price—At market prices. Pro¬
ceeds—For working capital and general corporate pur¬
Ulen
Feb. 1 filed $5,000,000 of
1,
five cents).
expected at $10 per share in lots of
not less than 25 shares; of class B, expected at par. Pro¬
ceeds—For investment in theatrical and entertainment
Jan.
(2/19)
refunding
Plan, Inc., New York City
shares of class A stock (par five
52,000
Price—Of class A,
•
Air
indefinite.
cents) and 28,000 shares of class B stock (par
•
States
to be offered to the
B.
Corp., Clarksville, Texas
.
10 filed
Jan.
United
Sept. 27 filed 600,000 shares of common stock (par 16
cents), of which 50,000 shares are to be offered to em¬
ployees, distributors and dealers; 50,000 shares, plus
any of the unsold portion of the first 50,000 shares, are
Interests
filed
30
which
filed
Fuel
Theatrical
Oct.
& Co., New
Raymond Oil Co., Inc.; Wichita, Kansas
gas
cumulative con¬
(jointly); White, Weld & Co.<and Equitable Securities
Corp. (jointly); Harriman Ripley & Co. Inq. and Gold¬
man, Sachs & Co. (jointly); The First Boston Corp. Bids
—Expected to be received up to noon (EST) on Feb. 27.
29
Nov.
29
,
Securities CpsrgL
Inc.; Kuhn, Loeb & Co. and American
stock
mon
York.
Jan.
5%
(letter of notification) 120,000 shares of com¬
(par $1). Price—$2.50 per share, Proceeds—
To pay bank loans, financing
of time payment sales
of
appliances and air conditioners and for working
capital. Underwriter—Franklin Securities Co., Dallas,
Texas.
Offering—Expected soon.
Nov.
fields.
Pyramid Productions, Inc., New York
Sept. 27 filed 220,000 shares of eommon stock (par $1),
of which 200,000 shares are to be offered to public and
20,000 shares issued to underwriter. Price—$5 per share.
Proceeds—To retire $125,000 of outstanding 15% deben¬
tures as well as a $173,180 debt to Trans-Union Produc-.
tions,
of
Underwriter—Smart, Clowes & Oswald,
Ky.
preferred stock.
•
shares of preferred stock, series of
For construction
shares
working capital and for redemption of any unexchanged
Inc.,
(2/27)
Co.
Price—To be supplied
(par $50).
Proceeds
Power
of the debentures and 10,906
offered first in exchange for
publicly offered. Price—$100 per unit.
general corporate purposes, including
be
to
are
Proceeds—For
Joseph A. Ray vis, also of Miami, is President.
Potomac
be
to
ing $200,000 of debentures and 4,000 shares of common
$1).
Under-
investment.
Share Corp.,
&
(par
are
outstanding
54,530
stock
stock
of stock
vertible preferred stock (par $10) at the rate of one new
unit for each 10 shares of preferred stock. The remain¬
Underwriter—Troster, Singer & Co., New York, N. Y.
Price—At
of which $545,300
stock,
Jan. 9
37
(809)
and Financial Chronicle
—
Corp. and
Inc. (jointly); Morgan Stanley &
Tentatively scheduled to be received on
26.
^ Ann Arbor RR.
(3/14)
Bids will be received
by the company on
March 14 for
purchase from it of $1,860,000 equipment trust cer¬
tificates.
Probable bidders: Halsey, Stuart & Co. Inc.;
Salomon Bros. & Hutzler; R. W. Pressprich & Co.; Baxter
the
& Co.
America.
Baltimore Gas & Electric (3720)
.
Shreveport, La. (2/27)
Feb. 8, Charles P. Crane, Chairman of the Board and
Feb. 1 filed $35,000,000 of first mortgage and collateral
President, announce that the next financing will probtrust bonds due 1977. Proceeds—To purchase $30,000,000
of first mortgage bonds of United Gas Pipe Line Co., a
ably take the form of an issue of approximately. 580,000
subsidiary, and
construction, program pf the two - shares of cDmmon stock which are to be offered for sub^
companies.'TJnderwriter—To be determined by competi- •.
v
...
. ? r
'toaoe 38
..wtjve
bidders;4^iey,-:-&tuaj;V.&
.•,
»•*
United
Gas Corp.,
i
The Commercial and Financial Chronicle
88-/(810)
Continued
4
from
scription by
on
file
tive
'
common
basis of
Subscription
sidiaries.
37
page
...
stockholders of record March
share for each
new
one
period
probably
would
11
from
the
Statement expected
latter part of March into early April.
Underwriter—
The First Boston Corp., New York.
Registration—Ex¬
pected
on
Commonwealth
Feb. 28.
—To
ceived
Price—At par ($100
ceeds—To reduce bank loans and for
per
new
share).
Pro¬
construction.
Underwriter—None.
graph Co. in
shares
(of
a
Southern Bell Telephone & Tele¬
february, 1956, sold its rights to 14,464
66,640 share offering to stockholders) to
R. S. Dickson.& Co.
Central
Hudson Gas
&
Electric
Corp.
plans, before
the middle of the year, to issue
approximately $12,000,000 of new securities (two-thirds in debt securities and
Feb. 1 it
announced that the company
was
the balance from sale of
construction program.
common
stock).
Proceeds—For
Underwriter—For any debt
secu¬
rities, Kidder, Peabody & Co.; for common stock, Kidder,
Peabody & Co. and Estabrook & Co., both of New York.
Central Louisiana Electric Co., Inc.
Jan. 25 it was reported that the
company plans
debt and equity financing in 1957. Proceeds—For
—
some
$12,Kidder,
without underwriting.
was
In 1954, a convertible debenture
underwritten by Kidder, Peabody & Co.
Central Maine Power Co.
Dec.
plans
some
have
permanent
been
yet
financing
worked
out.
Bank loans
000.
outstanding at the year end totaled $10,500,Construction expenditures for 1957 are now esti¬
mated at between
mated that
$19,000,000 and $20,000,000. It is esti¬
$5,500,000 of the amount needed for this pro¬
gram will be
ance
to
be
supplied from internal cash with the bal¬
supplied from outside
sources.
Underwriters
(first to stockholders) may
underwritten by Harriman,
Ripley & Co. Inc.,' The
First Boston Corp. and Coffin &
Burr, Inc. Bidders for
any bonds may include: Halsey, Stuart & Co.
Inc.; Blyth
& Co., Inc. and Kidder,
Peabody & Co. (jointly); The
First Boston Corp. and Coffin &
Burr, Inc;
—Any
common
stock
offer
be
Harriman,
Ripley
(jointly);
&
Fenner & Beane and
mon
Bros. & Hutzler.
Co.
Inc.; Merrill Lynch, Pierce,
White, Weld & Co. (jointly); Salo¬
* Chicago, Burlington & Quincy RR.
Bids
are
expected to be received by
<Mdrch 19 for the purchase from it of
ment trust
(3/19)
the company on
$7,500,000 equip¬
certificates due in 30 equal semi-annual in¬
stalments.
Probable bidders:
Salomon Bros. & Hutzler.
Halsey, Stuart & Co. Inc.;
if Chicago & North Western Ry. (2/27)
Bids will be received by the
company, at Room 1400,
400 West Madison
St., Chicago 6, 111.^ up to noon;:(CST)
ortFeb. 27 for the purchase from
it>o£ $1,335,000-equip-; »
certificates to be dated March
15, 1957 aiicbj
to mature in
15 equal annual
installments^ Probabled
bidders: Halsey, Stuart & Co.
Inc.; Salomon Bros. &*r
ment trust
Hutzler.
was
around
certificates.
Clavaland Electric Illuminating Co.
Nov. 12 it
was
in
the
1957.
Summer
of
Proceeds—To repay bank loans and for
construc¬
tion program. Underwriter—To
be determined
by com¬
petitive bidding.
Probable bidders:
Halsey, Stuart &
Co. Inc.; The First Boston
Corp.; Blyth & Co., Inc.; Dil¬
lon, Read & Co. Inc.; Blair & Co.
Inc., and Baxter, Wil-
PS0- Oointly); Glore,
Weld & Co.
Forgan
&
Co.;
White,
Coastal Transmission
Corp., Houston, Tex.
Dec. 28, the FPC authorized
this corporation to build
574 miles of pipeline to cost
f^om
tem
approximately $54,589,000
County, Tex., to the point of
Rouge Parish, La.
Underwriters—May
a point in Hidalgo
in East Baton
Lehman Brothers and Allen &
Co., both of New York.
-Jr Columbia Gas System, Inc. (4/3)
Feb..13 it was announced
corporation plans to issue and
gell to the public 1,503.000 shares of
common stock
(no
par). Proceeds—For financing construction work of
sub¬
stock
V"
t
"
* '
•
,
•
:
time
-some
in
its
to
stock
the
on
549,324
basis
of
shares
The
Expected first
First
Boston
for
each
Corp.
(jointly).
week in March.
*
*2® it1
J an
of
28
trustees
basis
record
approved
stock
common
the
Halsey,
Bids—-
of
new
Co.
&
to
share
each
12
in
shares
shares
held
SepL 12, it-
on
surplus.
3
one
it
Power
,
Corp.
reported that company plans to offer to
stockholders in May or June about
$11,000,000 of
common- stock
on
a
l-for-19 basis.
Under¬
writers
Merrill Lynch, Pierce, Fenner & Beane and
plans to issue
& Webster Securities
Corp./both of New York;
Mitchum, Jones & Templeton of Los Angeles, Calif.
ferred
Rubber Co.
Fenner
Dec. 4,
M. G. O'Neil, Executive Assistant to the Presi¬
dent, said the management was working on a plan to
revamp
the capital structure and that the
company
ital' investments
one
during the fiscal
A. C. Allyn & Co. (jointly);
Incorporated and Drexel & Co. (jointly);
White; Weld & Co.; Ladenburg, Thalmann & Co.
:
Blair
!
sell
it
was
(6/6)
announced
the
Star Gas Co.
11
it
Shields
&
Co.
(jointly);
Equitable
Houston
1
it
common
common
each
Lighting & Power
was
a.m.
Co.
(EDT)
(3/25)
shares
was
the
-of
sale
York.
v
•
April
or
are
ment
years.
Offering—Tentatively
$19,000,000
first
now
mortgage
considering
bonds. due
May,
1957.
.
expected
to be
Jan.
sell
writer—None.
by
the
company
on
of
it
$2,700,000 equip¬
trust certificates to mature
annually in l-to-15
Probable bidders: Halsey, Stuart & Co. Inc.; Salo¬
Mississippi Power Co.
program. Under¬
(4/23)
received
purchase from
Bros. & Hutzler.
mon
Proceeds—To
squth of
and
„
reported that company is
April .23 if or the
held
Houston Texas Gas & Oil
Corp., Houston, Tex.
Dec. 28 the FPC authorized
this corporation to build
942.6 miles of main line
extending from the Mississippi
River connection across
Louisiana, Mississippi and Ala¬
bama, and then eastwardly across the Florida
panhandle
and down the Florida
peninsula to a terminal
issue
Underwriter—The
—
Bids
on
amendment to the registration
statement.
reduce bank loans and for
construction
New
April.
^Minneapolis & St. Louis Ry.
company plans to offer to its
stockholders about 612,300 shares of additional
stock (no
par) on the basis of one new share
10
Jan. 29 it
in
June 6.
"■
announced
as of March 25,
1957; rights to
April 15, 1957. At Dec. 31, 1956, there were
outstanding 6,122,596 shares. Price—To be
supplied by
expire
in
plans to
Proceeds—To repay bank
program.
Underwriter
To
be determined
by competi¬
tive bidding.
Probable, bidders: Halsey, Stuart & Co.
Inc.; White, Weld & Co.; Blyth & Co., Inc.; Kidder, Pea¬
body & Co. and Drexel & Co. (jointly); The First Boston
Corp. Bids—Not expected to be received until sometime
Securities
on
Corp.,
late
1987.
Corp. and Eastman Dillon, Union Securities & Co.
(jointly); Harriman Ripley & Co. Inc. Bids—Tentativelyexpected to be received up to 11
company
construction
Metropolitan Edison Co.
—
and
for
Boston
expected
company
and sale of
announced
was
$30,000,000 of debentures.
First
is planning is¬
$15,500,000 first mortgage bonds. Pro¬
ceeds
To repay bank loans and for new
construction.
Underwriter—To be determined by competitive
bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.; Blyth & Co., Inc., Kidder*
Peabody &
for
Co.
loans and
21
Feb.
&
Lone
Jan.
cap¬
to end Nov. 30,
year
1957.
stock—Lehman Brothers, Merrill Lynch,
Pierce,
& Beane and Reinholdt & Gardner
(jointly);
Bear, Stearns & Co. and
issue of preferred stock.
$18,000,000 will be put into
of these securities., Underwriters—To
bidding. Probable bidders:
(a) For debentures—Halsey, Stuart & Co. Inc.; Lehman
Brothers; Blair & Co. Incorporated and Drexel & Co.
(jointly); Stone & Webster Securities Corp. (b) For pre¬
Stone
with
any
be determined by competitive
—
up
increasing
authorized preferred stock (par $25) by 400,000
shares to 880,000 shares.' The Company has no immediate
was
come
proposals
-
the
reported company plans to issue and
sell,
probably in June, $40,000,000 of convertible debentures.Underwriters
Paine, Webber, Jackson & Curtis and
that close to
'
,
Laetrile Gas Co. ;
2$* stockholders approved certain
authorising $10,000,000 of debentures' and
^General Telephone Corp.
He added
Expected in
—
"
I '
Kidder, Peabody & Co., both ef New York.
would like to
Bids
Jan.^
—
&
(jointly).
July, 1957.
or
ties, of this corporation or Henry J. Kaiser Co., or
through the public or, private sale of a portion of the
securities of the companies owned by the
Henry J.
Kaiselr Qo., or of certain other assets. Underwriter—The
First Bbkton Corp., New York. -
share for each five shares held.
Proceeds—To increase capital and
its
General Tire
announced company plans to issue and
of first mortgage bonds due 1987 (later
to meet the $25,000,000 installment due April
1, 1957 on its 4%% term loan may have to be provided
by the creation of debt by, or the sale of equity securi¬
additional
and
program.
necessary
was
Feb. 5 it
expansion
Industries, Inc.
28, E. E. Trefethen, Jr., Executive Vice-President,
stated that it is anticipated that a portion of the funds
new
share.
plans
Nov.
Middletown, Ohio
Underwriter—Greene & Ladd, Dayton, O.
Florida
Jan.
of
company
issue of convertible deben¬
an
Kaiser
5 this bank offered to its stockholders of
record
Feb. 4, 1957 the right to subscribe on or before
March 4
for 22,000 additional shares of
capital stock (par $10)
per
to sell
Pierce, Fenner & Beane
Feb.
rate
was
^8^)00,000
June
—
the
—
& C&. The.; Kidder,
Peabody & Co.; The First Boston
Corp.; White, Weld & Co.; Eastman Dillon, Union Secu¬
rities & Co., "Salomon Bros. & Hutzler and Merrill
Lynch,
-
Price—$20
The
under consideration by the management.
to $15,000,000). Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
March 20. Kidder,
Peabody & Co., New
dealer-manager for the previous offering
to stockholders, with Stone & Webster
Saturities Corp..
acting as subscription agent.
Registration
Expected
at
sale
changed
as
First National Bank of
now
thermear future
sell
competitive bidding. Porbable bidders: Kidder, Peabody
& Co.; Blyth &
Co., Inc.; Stone & Webster Securities
Corp.; White, Weld & Co. Bids—Tentatively expected
•
finance
Jersey Central Power & Light Co.
of
(about March
18.
to
on
21); rights to expire on or about
Proceeds—To repay bank loans and for general
corporate purposes. Underwriter—May be determined by
Feb.
are
tures* ^Proceeds—For
April 4.
York, acted
required
Jefferson Lake Sulphur Co.
Dec.-27, Eugene H. Walte, Jr., announced
Inc.;
stockholders
common
for
cash
May be The First Boston Corp., New
York; and G. H. Walker & Co., St. Louis, Mo.
(3/20)
offering of 89,322
an
(par $10)
one
Stuart
that
exactr^mount to be raised and the type of securities to
■
\
Utilities Associates
Light & Power Co.
announced
was
^937 construction program will necessitate the
of sehufifies to the extent of
$5,000,000 to $6,000,000.
reported company plans to issue and sell
June about $5,000,000 of equipment trust cer¬
Eastern
underwrote last equity financing.
the
was
tificates. Probable bidders:
Salomon Bros. & Hutzler.
bank
repay
.
lowa EJectric
Underwriters
it
or
secu¬
d960, amounting
(jointly); Salomon Bros. & Hutzler; White,* Weld & Co.
Pressprich & Co. (jointly); Smith, Barney
if Denver & Rio Grande Western RR.
11
Additional
1959. and
and -R.JW.
&
Feb.
May
in
was reported
company expects to issue and
May $6,500,000 of first mortgage bonds. Under¬
be sold
in
make it
writer—^-To be determined by competitive
bidding. Probable^fcidders: Halsey, Stuart & Co. Inc.; Merrill
Lynch,
Pierce, Fenner & Beane and Kidder, Peabody & Co.
additional
of
share
one. new
Underwriter—To be determined by
bidding. Probable bidders: Kuhn, Loeb &
Co. and Ladenburg, Thalmann & Co.
(jointly); Morgan
Stanley & Co.; Lehman Brothers; Harriman Ripley &
and
conditions
Dec.fc20 it
sell in
plans to offer to
program.
Inc.
market
a^rqximately $14,000,000.v Proceeds—To
competitive
Co.
'
Interstate Power Co.
15 shares held.
Unsubscribed shares to be offered to
employees.' Price—Not less than $4.50 per share below
market price at time of offering.
Proceeds—For con¬
struction
'
new construction. Underwriter—May be
Lehman Brothers, Goldman, Sachs & Co. and The First
(3/4-8)
announced that company
stockholders
common
common
Co.
if
utilized;1 during at least part of 1957.
Bost|u£ Corp., who
Power
1957
rities will need to be sold
& Co. and Paine,
Webber, Jackson & Curtis (jointly);
Morgan, Stanley & Co. and the First Boston Corp.
(jointly).
was
'r
'
feasible, and an issue of $8,000,000 in bonds in 1958. Tem-<
porafey. bank loans are available and probably will be
loans_ahd for
Consumers
'
Indianapolis Power & Light Co.
Nov.agl; H. T. Prichard, President, announced that pres¬
ent plans
contemplate an issue of $6,000,000 of preferred
Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; White, Weid
Jan. 25 it
'
Underwriters—Merrill Lynch,* Pierce, Fenner & Beane
First Boston
Corp., both of New York.
* -
;
:\v
"
..
and
,
Co.
reported company plans to issue and sell
$25,000,000 of first mortgage bonds
plans
Feb, 11 it was reported company plans to issue and
sell,
probably in June $25,000,000 of 25-year debentures and
an
additional $25,000,000 of debentures - fn
the - Fall.
Jan.
reported that the company plans to issue
May 6 $2,000,000 of equipment trust
Probable bidders:
Halsey, Stuart & Co. Inc.;
Salomon Bros. & Hutzler.
sell
V-
it Consolidated Natural Gas Co.
suance
and
company
Registration—Planned for sometime
Georgia Power Co.
★ Cincinnati, New Orleans & Texas Pacific
Ry.
(5/6)
Feb. 5 it
March 12.
•
„
a7,..the directors approved, subject to stockholder
approval; an increase in the. authorized-serial preferred
stock^par $50) from 1,000,000 shares to 1,600 000 snares.
by
Stuart
on
County, Fla., estimated to cost a total
Underwriters—May be Blyth & Co., Inc.,
Calif., and Scharif & Jones,-Inc., New
Feb.
Co.
February.
Francisco,
if Illinois Power Co.
determined
to be received
31, W. F. Wyman, President, announced that "while
the company expected to do
in 1957, no definite
in
Jan.
500,000 construction program. Underwriters
Peabody & Co.< and White, Weld & Co. placed last bond
issue privately; last preferred stock issue also
placed
privately; with common stock locally or to stockholders,
offering
be
Thursday, February 14, 1957
.
Dade
Orleans, La.
to be filed shortly.
Edison
in
$94,285,000.
San
competitive bidding.. Probable
bidders: Halsey,
& Co. Inc.;. The First Boston
Corp.; Glore, Forgan & Co. Bids — Expected to be re¬
Carolina Power & Light Co.
Oct 15 it was reported company plans to issue and sell
between $15,000,000 and $20,000,000 • of first mortgage ~
bonds. UnderwrHer-^To be determined by competitive
four shares held.
Miami
of
issue and sell $50,000,000 of first mortgage bonds due
1987. Proceeds—For construction program. Underwriter
Salomon Bros. & Hutzler.
Carolina Telephone & Telegraph Co.
16 it was reported company has applied to the
North Carolina P. U. Commission for authority to offer
to its common stockholders an additional
58,310 shares
of common stock on the basis of one new share for each
by competi¬
Merrill.Lynch, Pierce,
(3/12)
Gale, Chairman, announced
Jan. 3, Willis
(4/15)
Bids are expected to be received by the company on or
about April 15 for the purchase from it of $3,585,000
equipment trust certificates to be due annually in 1-to15 years.
Probable bidders: Halsey, Stuart & Co. Inc.;
Nov.
determined
to
^Baltimore & Ohio RR.
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Kului, Loeb & Co. and A. C. Allyn & Co. Inc. (jointly);
W. C. Langley & Co. and The First Boston Corp. (joint¬
ly); Equitable Securities Corp.; Blyth & Co., Inc.; Kid¬
der, Peabody & Co. and Merrill Lynch, Pierce, Fenner
& Beane (jointly). Offering—Expected in 1957.
be
Probable bidders:
Beane, White, Weld & Co. and R. W. Pressprich & Co. (jointly): Morgan Stanley & Co.
Bids—
Expected to be received on April 3.
Registration —
15
shares held.
extend
Underwriter—To
bidding.
Fenner &
;
.
21
it
was
announced
(4/11)
company
-
plans to
$6,000,000 of first mortgage bonds.
issue
and
Underwriter
—
To be determined
by competitive bidding. Probable bid¬
Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce,
Fenner & Beane; Kidder, Peabody &
Co.; Blair & Co.
Incorporated; Eastman/Dillon, Union Securities &.Co.
and Equitable Securities
Corp. (jointly)^ Bids—Tenta¬
ders:
►
tively expected
April 11.
to be received
up
to 11
a.m.
(EST)
on
Volume 185
Number 5612
.
,
National Fuel Gas Co.
►
Jan. 10 it
000 of
in
investments
writer
(5/28)
To
—
Probable
be
Southern
price, all the shares of Pittsburgh
securities of subsidiaries.
period will
Rys. stock not sub¬
The subscription
period of not less than 21 days.
for
run
a
Feb. 1 it
Price —$6 per share, less any dividends paid on the
Pittsburgh Rys. stock after Oct. 19, 1956. Proceeds—To
Under¬
determined
by competitive bidding.
Halsey, Stuart & Co. Inc.; The First
bidders:
(811)
scribed for by the public stockholders:
reported company plans to issue $15,000,25-year debentures. Proceeds—To make addi¬
was
new
tional
The Commercial and Financial Chronicle
.
Standard Gas & Electric Co.
specified
amount
Probable
1
first
to
reported
was
Jan.
company
plans offering,
probably
stockholders, of additional
Underwriting—May be on
common
Lehman
Brothers; The First Boston Corp.; Equitable
Securities Corp.; Merrill Lyneh, Pie.ce, Fenner & Beane,
Kidder, Peabody & Co. and White, Weld & Co, (jointly).
Offering—Expected in first half of 1957.
Sept. 12 it
Power & Light Co.
announced
ceeds
,
;
company
Eastman Dillon. Union Securities & Co. and
&
Co.
White, Weld
Public Service Co.
Public
Service, Inc.
(3/28),
loans and for
Brothers.
on
Securities
Jan. 28 it
common
mon
^
York, Chicago & St.
Louis RR.
(2/14)
Bids will be received by the company up to
noon.-(E'£T)
on Feb.
14 for the purchase from it of
$6,421,000 equip¬
certificates due semi-annually from Sept.
March 15,
1972, inclusive.
Probable
-
New York State Electric & Gas
it
Underwriter—To be
program.
Hutzler
Probable
(jointly).
TMT Trailer
Proceeds
held.
one
new
com-*
14,
James
S.
it
was
it
21
announced
Co.
■
bank
&
reported
13
Power
Co.
total of 20,000
a
of
that, company
plans
$157,000,000 in
1958
to
for. expansion
and
improvement to
phone & Telegraph Co. Underwriter—For any bbhds, to
be determined by competitive bidding. Probable bidders:
determined
Pennsylvania
Electric
Co.
register on
shares of cumulative
12 it was announced company plans to issde and
$6,000,000.of first mortgage bonds. Underwriter—
To. be determined by ' competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; Merrill Lynch/Pierce,
Fenner & Beane, Eastman Dillon, Union Securities &
Co.(and White, Weld & Co. (jointly); Equitable Securi¬
ties
Corp.; The First Boston Corp.; Harriman Ripley &
Inc.; Kuhn, Loeb & Co.
^ Pennsylvania RR.
Bids
it
21
was
announced
cates. Probable bidders:
Jan.
Pioneer
Jan.
7
it
Natural
Gas
reported
was
registration is expected
Union
March.
in
in
Feb¬
—
Eastman
Dillon,
^ Pittsburgh Railways Co.
Feb.
5 At
common
was
that the
stock of this company
Electric Co.
ard
announced
will
be sold
on
Gas stockholders at the
a
540,651.75 shares of
held by Standard Gas &
rights offering to Stand¬
rate
of
one
45.6%
stock held. Standard Shares, Inc., the holder of
of the
common
to exercise the
addition,
has
stock of Standard Gas has agreed
rights to which it will be entitled and, in
agreed
to
purchase,
at
the
subscription
Power Co.
(6/4)
reported company plans to issue and sell
.
repay bank loans and for construction pro¬
Underwriter—To be determined by competitive 1
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;,
Blair & Co. Incorporated and Baxter & Co. (jointly); ;
Merrill Lynch, Pierce, Fenner & Beane and Stone & Webster Securities Corp. (jointly); Kidder, Peabody & t
gram.
Co.; Equitable Securities Corp.; Eastman Dillon,
Securities & Co.; The First Boston Corp.
Union
•
West Penn Power Co.
■.
h
plans to issue some
probably* about $20,000,000 *
of ftrst mortgage* fodnds due 1987. Proceeds — To repay '
bank loahfe and for hfew construction. Underwriter — To
Dec.
27 it was announced company
additional
21
it
was
common
about
senior ^securities,
Probable
announced
stockholders
Price—To
be
fixed
$10,000,000 of first mortgage bonds in
the Spring.
Underwriter—To be determined by competitive
(3/13)
company
of record
plans
March
to
offer to
13, 1957 the
March
12.
Underwriter—To be de¬
competitive bidding. Probable bidders: The
First Boston Corp.; Morgan Stanley 8c Co.; Kidder, Pea¬
body & Co. and Merrill Lynch, Pierce, Fenner & Beane
(jointly); Lehman Brothers; Eastman Dillon, Union Se¬
curities & Co. and Equitable Securities Corp. (jointly).
Bids—To be received up to 11 a.m. (EST) on March 13 at
termined by
Securities
bidders: Halsey,
Corp.
and
Lee
bidding.
Stuart 8c Co. Inc.; Equitable
Higginson
Corp.
(jointly);-
& Co. Inc.; Blair 8c Co. Incorporated; Coffin
Burr, Inc.; The First Boston Corp. and White, Weld
Co. (jointly).
Blyth
•
Wrigley Properties, Inc. (3/14)
11 it was announced this company, a newly
Feb.
&
&
formed
subsidiary of ACF-Wrigley Stores, Inc., plans to offer
its shares of capital stock for subscription by the latter'*
stock,
debenture
and
option
holders, the offering to
* Southern Ry.
basis of one share of Proper¬
ties stock for each two shares of ACF-Wrigley held as
of record on or about March 12, 1957, with rights to
exoire on or about March 28.
Price — $2 per share.
Proceeds—To develop locations principally for use by
Bids
the parent company,
250 Park Ave.,
Feb.
New York, N. Y. Registration—Expected
15.
share of Pitts¬
burgh Rys. stock for each four shares of Standard Gas
common
...
Electric &
was
company
right to subscribe on or before April 4, 1957 for 1,507,304
additional shares of common stock on a l-for-13 basis.
Co.
Underwriter
Securities & Co., New York.
early
Co.
Southern
its
of about $12,500,000 debentures, for public offer¬
ruary
ing
Halsey, Stuart & Co. Inc.; Salo¬
Bros. & Hutzler.
Co.
28 it
ceeds-r-To
n
rns'
September, 1957.
or
in February or
mon
-
Washington Gas Light Co.
12, Everett J. Boothby, President, announced that
the company expects-to raise about $8,000,000 through
the sale of first mortgage bonds some time in 1957. Pro-
bidding.
Gas
k
this privately-owned company
plans to issue an,d;h be determined by competitive bidding. Probable bidders: <
sell about $35,000,000 of first mortgage bonds. Proceeds
Halsey, Stuart & Co. Inc.; Eastman_Dillon, Union Securities & Co.; Kidder, Peabody & Co. and White, Weld
-To repay bank loans and for new construction.
Un¬
& Co.
(jointly); Lehman Brothers; The First Boston
derwriter—To be determined by competitive bidding.
Corp.; W. C. Langley & Co.; Harriman Ripley & Co. Inc.
Probable bidders: Halsey, Stuart & Co. Inc.; Blyth &
Offering—Expected
sometime in July.
Co., Inc. and Merrill Lynch, Pierce, Fenner & Beane
(jointly); White, Weld & Co. and Eastman Dillon, Union
Western Massachusetts Companies
Securities & Co. (jointly). Offering—Expected in August
Dec. 17 it was reported company plans to issue and sell
Jan.
received by the company late
early in March for the purchase from it
of from $7,000,000 to $8,000,000 equipment trust certifi¬
are/expected to be
California
Southern
announced
Dec.
& Webster
pected to be received until next Fall.
Sept.
Co.
competitive
was
i
•»
-
500,000 shares of common stock. Underwriters^r-To be
determined by competitive bidding. Probable bidders:
Stone & Webster Securities Corp.; Merrill Lynch, Pierce,
Fenner & Beane. Bids—Tentatively expected on June 4.
(3/15)
plans to
Underwriter—To be
Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp. and
Lehman Brothers
(jointly); Kidder, Peabody & Co.;
Eastman Dillon, Union Securities & Co.
Bids—Not exby
it
Virginia
Jan.
reported company plans to issue and sell
was
placed privately.
capital and other general corporate purposes.
$10,000,000 of first mortgage bonds.
'sell
,
14 it
were
from
.South Carolina Electric & Gas Co.
Jan.
cost of' its $110,080,000 1957 construction
Underwriter — For preferred stock — White,
giving active consideration to a public stock issue.
Proceeds—Together with a loan of * about $6,000,000
motion picture exhibitors, to be used for working ;
to
Corp.-and Stone
Boston
9
.
the
of
United Artists Corp.
,
Securities Corp., both of New York.
be financed in part, by debt borrowings and stock issues.
About 90% of Pacific's stock is owned by American Tele¬
Halsey, Stuart & Co. Inc.,* Morgan Stanley & Co.
First
I
reported that company plans to sell some
preferred stock and bonds in order to raise
previously
by common stockholders of record about March 14, 1957
a l-for-6 basis; rights to expire on March 29).
Underwriters—The
was
is
plans
company
,
Hutzler, New York.
about $3,000,000
preferred stock (par $100) and 163,334 additional shares
of common stock (latter to be offered for subscription
-
Vice-President,-announced
spent $159,000,000 in 1957 and
Inc.
Weld 8c Co. and Stone 8c Webster Securities Corp. Bonds
.
Electric
was
about Feb.
or
/
Cantlen,
Ferry,
program.
Underwriter—The First Boston Corp., New
Savannah
Jan.
part
Jan.
17
it
additional
offer to its
Registration—Expected about the middle of Feb-
-
reported -corporation is considering public
Financial Adviser—Salomon Bros. &
on
Jan.
was
share for each five
To repay
—
.
financing, but details have not as yet been determined.
Jan. 8
195,312 additional-shares of
the basis of
on
>>
of
Jan. 21 it
determined
t
•
both
Corp.
capital aqd. surplus.,
bidders:
Pacific Telephone & Telegraph
sell new
continuing
Underwriters—Emch & Co. and The Marshall Co.,
Milwaukee, Wis.
poses.
offer to its
stockholders 50,000 additional shares of capital stock
(par $5) on the basis of one new share for each six
shares owned of record Jan. 24;
rights to expire on
March 1, Price—$16.50 per share. Proceeds—To increase
by competi¬
Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co.; Blyth & Co. Inc. and JSmith,
Barney & Co. (jointly); The First Boston Corp. and
Glore, Forgan 8c Co. (jointly); Harriman Ripley '& Co.
Inc.; Kidder, Peabody & Co. and Salomon Bros. &
bidding.
announced company expects to
during 19o7. i*rice—Of preferred, $102 per share. Pro- •
ceeds—For working capital and general corporate pur¬
issue and
Royal State Bank of New York'
Jan.
company plans to sell in 1957
$25,000,000 of first mortgage bonds, and an additional
$20,000,000 in 1958. Proceeds—To finance construction
tive
was
Thorp Finance Corp.
i
it was reported company plans to issue and sell
locally 10,000 additional shares of 5% preferred stock
and to sell generally some additional common ' stock
15,
~'~*-
Corp.
it
Jan. 30
ruary.
announced
was
loan
plant expansion. Underwriter — For any bonds, to be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co. and
Merrill Lynch, Pierce, Fenner & Beane (jointly); Hemp¬
hill, Noyes & Co. and Drexel & Co. (jointly); The First
Boston Corp.; Eastman Dillon, Union Securities & Co.;
Kuhn, Loeb & Co., Blyth & Co., Inc. and Lehman Brothers (jointly); Harriman Ripley & Co. Inc. and Stone
& Webster Securities Corp. (jointly).
(3/20)
plans to
announced company plans to.
stockholders
loans.
York.
1957 to
bipders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.
Oct. 24
Telephone
was
stock
bank
ment trust
Co.
Gas
bank
Transcontinental Gas Pipe Line Corp.
shares
New
&
company
from an existing
securities during .1957 to obtain capital for its
Halsey, Stuart & Co., Inc.; The First Boston Corp.; Kuhn,
Loeb & Co. and Lehman Brothers
(jointly); Morgan
Stanley & Co. and Drexel & Co. (jointly). Bids—Expect¬
ed to be received up to 11 a.m.
(EST) on March 20.
Registration—Expected about Feb. 21.
(jointly); Lehmar
expected to be received
Bids—Tentatively
Electric
$40,000,000
Early registration of $40,000,000 to $50,000,-
Electric Service Co.
Texas
Jan. 2
Underwriter—To
construction.
and
expected:
Proceeds — For expansion program.
Underwriter—Dillon, Read & Co., Inc.* New York. /
$50,000,000 of debentures due
Rochester
•<
<
Corp.
is
000
of Colorado
announced
was
Eastern Transmission
agreement.
-
company
new
Service
it
early registration is expected'1
Price—$6.75 per
reported
Underwriter—White & Co., St. Louis, Mo.
securities
bonds to be determined by
March 1, 1977. Pro¬
ceeds—For construction program. Underwriter—To be
determined by competitive bidding.- Probable bidders:
Corp.
March 28.
29
sell
President, announced that this
plans to issue and sell $6,000,000 of first mort¬
gage bonds. Proceeds—For construction program. Under¬
writer—To be determined by competitive bidding.. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; White, Weld &
Co.; Blair & Co. Incorporated; The First Boston Corp.;
Equitable Securities Corp. and Eastman Dillon, Union
Securities & Co., (jointly); Kuhn, Loeb & Co. and A. C.
Allyn & Co. Inc. (jointly); Kidder, Peabody & Co. and
Webster
reported
was
Public
company
&
any
competitive bidding. Probable bidders:
Halsey, Stuart & Coj'Inci( Kidder, Peabody & Co. and
White, Weld & Co. (jointly); The First Boston Corp.;
Blyth & Co., Inc. and Smith, Barney & Co. (jointly);
Lehman Brothers; Harriman Ripley & Co. Inc.
Bids—
Expected to be received early in 1957.
Nov. 13, Edgar H. Dixon,
Stone
1957 issue
in
be determined by
Jan.
Orleans
may
plans the issue and sale
$30,000,000 first mortgage bonds. Proceeds—To repay
Equitable Securities Corp.; The First
Corp.; Merrill Lynch. Pierce, Fenner & Beane.
New
company
Corp.; Kuhn, Loeb & Co. and Blyth & Co., Inc. (jointly);
Lehman Brothers; Kidder, Peabody & Co.; W. C. Langley & Co. and The First Boston Corp. (jointly). Offer¬
ing—Expected in May.
Oct. 8 it
was
(3/5)
Naff, Vice-Chairman, announced that
corporation expects to secure an additional $100,000,000
through issuanec *>f senior securities and possibly equity
competitive bidding. Probable, bidders:
Halsey, Stuart
8c Co. Inc.;sWhite, Weld & Co.; Equitable Securities
(jointly):
Boston
announced
Underwriter—For
gram.
}
* '
Inc., Kansas City, Mo.
Jan. 16, George T.
Edison Co.
was
—
bank
plans to issue and
sell $5,000,000 of first mortgage bonds.
Underwriter—
To be determined
by competitive bidding.
Probable
bidders: Halsey,
§tuart & Co.; Kuhn, Loeb & Co., Leh¬
man Brothers, and
Salomon Bros. & Hutzler (jointly);
was
share.
$14,000,000 to $15,000,000 of senior securities. Pro¬
To repay bank loans and for construction pro¬
some
of
New Jersey
27. it
it
30
Texas
Potomac
'
Dec.
Halsey, Stuart & Co. Inc.;
a nego¬
tiated basis.
Jan. 3, 1956, it was announced company plans to
merge
its subsidiaries, Essex County Electric
bidders:
of about 40,000 shares of common stock.
common
stock later this year.
England Electric System
.
of
Underwriter—None.
★ Portland Gas & Coke Co.
Feb.
3
,,
expects to sell an un¬
equipment trust certificates on.
Salomon Bros. & Hutzler.
Stuart-Hall Co.,
Corp.; Eastman Dillon, Union Securities & .Co.;
White, Weld & Co.; Harriman Ripley & Co. Inc. Bids—
Tentatively scheduled to be received up to 11:30 a.m.
(EST) on May 28. Registration—Planned for April 18.
Co., Lowell Elec¬
tric Light Corp., Lawrence Electric Co., Haverhill Electric
Co. and Amesbury Electric Light Co., ihto one
company.
This would be followed by a $20,000,000 first mortgage
bond issue by the resultant
company, to be known as
Marrimack-Essex
Electric
Co.
Underwriter—May be
determined by competitive bidding.
Probable-binders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Company;
Salomon
Bros.
&
Hutzler,
Eastman
Dillon, Union
Securities & Co.. and Wood, Struthers & Co. (jointly),
7.
(3/7)
announced company
March
Boston
New
Pacific Co.
was
(3/21)
«fre expected to be received by the company on
March 21 for the purchase from it of $5,540,000 equip¬
ment trust certificates. Probable bidders: Halsey, Stuart
8c Co.
Inc.; Salomon Bros. & Hutzler.
stockholders to be on the
which
may
include individual loca-^
sites and shopping centers. Under*
writer—Allen 8c Co., New York. Registration—Expected
tions
shortly.
warehouse
40
(812)
The Commercial and Financial Chronicle
additional
the
to
of Socony-Mobil stock
company's shareholders!
serves
sponsoring
suitable adjustment.
The
been
of
making
syndicate
recurrent
has
"layoffs"
such
operation
Shares
of
The
the
in
pace
market,
the
issue
new
seasoned
one
investment
held
well
recent
as
in
as
at
share
$45 xk.
hold-
to
in
the
for
a
postponement
of
Anaconda
Co.'s
big "rights"
offering because of market con¬
from
ditions.
But
in
bonds
the
And
ing,
case
of
what
is
there
has
preciable
shelf
they have
equities.
as
quite
not
build
stocks
tions
any
in
ap¬
"rights"
purchased
market
by
end
By
in
bankers
of
the
open
kept
moving.
and
large,
however, the
buyers of new invest¬
potential
ment
securities
adopted
titude
toward
sumably
to
get
money
will
ahead.
If
market
at¬
pre¬
line on what
in
the
weeks
a
do
it
wait"
and
the
have
to
appear
'"watch
a
behaves
the
As
the
up
There
is
quarters
Federal
six
to
look
for
in
of the
months"
to
give
an
another
period
only
the
in
look
week
ahead
smattering of pipable
a
issues due up
busy
were
yesterday.
for bids.
each
are
held.
Rights
March
on
rights^ offering of 4,379,758 shares
This
as
of
due
to
in
5.
will
Continues
not
be any appreci¬
dealers
have
may
bits
Edison
of 25-year
Co.'s
first and
refunding mortgage bonds.,
Monday
New
England
accept bids for
$10 million of 30-year first mort¬
gage bonds which will put it in
Co.
will
to
liquidate
of
one
tories
banks
It
1907
limits
to
lend
policy, and to let
labor
as
a
means
of
checking
over-
hang itself through inflation
arising from excessive increases
expansion of credit.
in wages, but. a
political situation
could thereby be created which
(6) Extremely high money rates
might tend to produce trouble in
of
could
would
to
be
beyond
control.
They
alternatives
of
gree
cause
but
their
capacity
might have no
to
impose
restraint
which
de¬
a
would
recession,
degree of
or
sterling
abroad.
area
Although
ditions
domestic
entitled
are
elsewhere
or
to
con¬
primary
consideration,
cannot
otherwise
an
the
unnecessary
to 'accede1 to some .Ui.;(7)
foreign conditions
be altogether disregarded.
Foreigners hold
vast quick
against our?goldifj:eserves,
appear to l|e •and in theory could draw out a
at first a small
degree of infla¬ rvasto portion * thepresOD?, This contion may gradually become in¬
tirtgenfcyvdoes notiseem to be re¬
creasing and, finally, very dis¬ garded as very likely but it could
turbing
inflation.
It
is
very conceivably cause trouble, and it
difficult if not impossible to
keep is possible that we are not well
inflation small and gradual.
enough set up to handle such a
inflation;
tunately; what may
contingency without distortion
Rise in Unsound Credits
(4) If
begin to
of
the
lead
unsound
appear
credits
in
ultimately
to
member
should
large sections
and
economy,
threaten
to
extreme
an
<
unfor¬ iclaims
and,
(8)
bank
of
be
to
measures
was
of
the
to
Federal
Reserve
50
of
years
seldom
at
the
how
see
requirements
for
money, tax payments and Govern¬
ment
the
as
refinancing
operations
call
for
horse
bit, and he
has
policy
to
available
as
settled
If
soon
down
a
ready to trot
less damaging than a
too little and too late.
grow
the
to stand still or
rate much slower than
reserves
at
a
standard.
They would
be
in
the unenviable position of
having
,
to choose the lesser
(5)
A
change
in
of banks towards
reserve
bank
porarily take
volume
hands
of
of
of
two
the
evils.
attitudes
borrowing at the
might at least tem¬
the
control
reserves
Reserve
out
of
the
of
the
authorities,
been
made
to
Mathematical
Precision
It
a
is
clear
that
diate needs.
that
these
interme¬
It has been presumed
interim
operations
would go on
ary,
regardless
(9)
the
money
of. longer
which
ciency
for*
;
Changes
use
(10)
in
range
customs
as
to
money, or developments
tended
to
improve effi¬
in
the
use
as
be
of
ume
not
but
longish
a
for the
par
that such
all
with
sion,
as
mean
under
lowed
from
reserves
point of view
course
course
a
conditions
be
mathematical
under
than those of
war
or
fol¬
preci¬
conditions
course
rather
could
other
of
some
narrow
taken
delivery
into
con¬
firmer
with
the,
or
held
limits,
the
easier
in
direction
departure.^
within
and
that
accordance
or
Such
degree
of
general
a
concept of central banking
theory
does not signify that
Federal Re¬
serve
row,
policy should follows
purely mathematical
in
the
ments,
light
or
of
nar¬
con¬
constant review
actual
disregard
develop¬
any
of
the
realities, but it
give
Changes in the legally
be
money rates would tend to become
thereof, such, cept not subject to
shorter
pre¬
other
times,
the
best
even
both
changed.
have been
Governments will
not
prescribe
a
give
An
in
fixed
all rights
up
was
formula
ever
an
orderly progression
of money.
simply suggesting that
objective
be
reached
directly and simply.
one
and
to change it.
object of the gold standard
really
the volume
can
do is to
We
are
the
same
much
more
The best that
hope to persuade
tory with sufficient care, they will
find it in
to
their
own
best interests
permit themselves to be
suaded.
so
per¬
The suggested degree and
money
management
seem
unavoidable, as limited as is prac¬
tically possible, and as free as
the
danger of unsub¬
experiments.
On /the
stantiated
other
appears likely to
practically attain¬
able results inborn*
present state of
1920s.
do
that
character
of
Many
not
hand,
based
on
a
management
belief. that a given
money
price level and/or degree of busi¬
activity may be indefinitely
maintained by more radical and
less consistent changes in member
bank reserves, or by
changes less
well coordinated
with
scientifi¬
a
cally estimated need for money
smoothed
curve
standard,
be disliked
history and
on
is
it
reason.
have
changes
bank
,
In recent
years the
authorities
in
had
assets
influence in
some
'
future.
our
nearby
'
Investment and
Loan
Created
Deposits
During
to
take
assets
bank
wars
on
assets
investment
an
ter, that is,
tend
charac¬
large portion of the
a
to
come
be
invested
in
government
bonds, and the por¬
tion represented by loans
strictly
of
current
a
acter
self-liquidating char¬
recedes.
-
After
the
is
war
over, a reverse tendency sets in,
witn the result that the
proportion
of assets of
ter
short
investment charac¬
an
declines,
of
and
the
current
as
proportion
increases.
loans
have
we
recently, much
also
turn
over
to in¬
them
seen
do
rapidly than
more
the volume of money.
the deposits created
Presumably
by current
more
rapidly
than the deposits created
by bank
investments. When these processes
have reached such a point that
the
rate
of
bank
lending
diminish, and the volume
must
to
in
move
the
closer
volume
of
cession sets in.
deposits,
become adjusted
to
which
of
the
rate
must
of loans
correlation
Had the
bank loans and
a
re¬
economy
situation iri
a
expansion
deposits
was
of
well
coordinated, we could believe that
the policy which we have outlined
would
result
in
.the
successful
avoidance of marked recession.
„
Until, however, the rate of cur¬
lending and volume of money
rent
have
been
nated
over
it
be
may
more
in
would
closely
coordi¬
considerable period,
that even the present
a
policy will not be
ful
mitigating
under
as
fully
success¬
recession
conditions
it
as
more, re¬
mote from the effects of
past wars.
If this proves to be
true,
not
be
it will
because
the policy is un¬
but, because there is no
practical way of doing any better
job until the investment portion
sound,,
of
bank
assets
has
significant, and the
current
been
loans
and
become
legs
correlation of
deposits
has
established
on
a
more
per¬
manent and usual basis—the word
"usual"
of
the
among
being used as descriptive
situation found to exist
banks after the
have
war
effects
of
been
virtually com¬
pletely eliminated, and a, long pe¬
riod
of peace
has occurred.
JAMES A. HOWE
Industrial Investment Director
Mutual Life Insurance Co. of
173 Parsonage Road
N..Y.
Greenwich, Conn.
Jan.
27,1957
>
—J
Graham Elected NASD
District Chairman
Praises Federal Reserve
serve
to
not
may
the basis
on
of
appear
But
other
se¬
loans
influence in the 1930s, and may
an
ness
of
regular line of rather consistent
regular increases in the vol¬
■
of
example,
-
advancing
has been custom¬
policy.
especially if open market hold¬ times, should
ings were very small, and leave sideration.
them with only
as
at
of
selection
the
foreign,'
estate
today.
impossible
were
Here
the
and
par
deal with
coins, and neither of these
inviolate. In most wars, and
a
the
temporary changes in member
degree of liquidation, they might
other
particularly extraordinary
bank reserves. In this
have to forego
article the
temporarily what
conditions, it seems reasonable to
discussion is limited to
would
year
to
otherwise be considered
suppose that departures from the
year problems, and no
normal increases in
attempt has
reserves, and
cause
permitted ratio of deposits to gold
by setting the gold content
of
very well
Narrow
the
his¬
indicated.
No
of
far.
At least this is what
(he compar¬
ative
records
of
1907
and
1929
seem
determination
old
some
so
is
of
the
managed in
in
pol¬
along at his best traveling gait,
a
policy of too much too quick
restraint
or
governments to follow sound
slackened
appears
has
fiat,
money
icy, and if they will examine
compared to the valley
are
ex¬
era
depression of the 1930s.
reins
of
ever
and
possible of
as
time
our
the effects
severe
money
and
back
the
present
loans
of
this
ago,
run
look
we
,
sort
time in
some
Even
way.
was
by
nificant
can
Seasonal
degree
in
the
real
these conditions
be
crease,
Past
to any
volume
volume
other
some
bor¬
estab¬
The
gold system
of
of
one
the
always
been
managed
by
legally prescribed formulae,
correct.
led
in
No such
policy of
does
reserves.
isted.
goods
impossible
excitement
the
outlined
tirely by "natural causes," and that
rates were similarly de¬
commitments,
cent
the
past,
"panic" really were, we find
only a small dip in industrial pro¬
duction—one that is quite
insig¬
of
movement
reserves
Managed
termined.
inven¬
System with its greater flexibility.
the
of
movement
money
As
more.
indices of industrial production in
rates
the
free of any conscious
control,
and its suoplv was determined en¬
the
of the
sound
the
"managed money," apparently
the
busi¬
because
developments which
When
to
as
was
to
on
and
became
experience
order to
abandon
of
qommitments and pay
help. Hence, the
"money
panic"
which
required
The
of
in the belief that at
of
can
unsound
in
Therefore, bank loans tend
many cases to find enough money
meet the
outstanding
lishment
misconcep¬
fundamental
same
Some people object
to
minds
the
on
Money
practical
movement
another
This
be.
of
of member bank
hard up against
ran
outstanding
abated
Continued from page 12
In
somewhat,
rowed.
reason,
created
impossible of actual achieve¬
deposits with the ideal
too
degree
protesters
accumulated
then
outstanding
short-term obligations.
and
the
large
a
of
temporary
„
,
of
receded
only, two
actually up for bids, the
largest, slated for Tuesday, being
California
little
inflexible
rate
other
any
better the net results will
based
degree pass the buck to the
power
the
and
issues
$37.5 million
too
with
then
not
shows
is
expansion
the
pieces
around
from
previous
offerings they will be able to
put in more work in that direc¬
calendar
of
for
touch
ness
for
or
concept may in the future make
it possible to bring about a closer
Independence
Reserve authorities.
able pickup in new issue business
in the week ahead.
Thus, where*
funds
of
tent at least, be made the
scape¬
goat, and politicians more directly
for
and
monetary actions,
and which have impeded business.
It is possible that other measures
autonomy for the Federal Reserve
authorities. They can, to some ex¬
be
to
share
some
Slack
Power
Foresight appears to be pay¬
ing off handsomely for bankers
handling the "standby" on the
late.
neces¬
are
1
On
Let's Not Delay
policy
a
curity
possibilities
This is always a'difficult
prob¬
lem, and at best is likely to lead
to
depart from
for the course, by reason
exigencies of government
herein.
Reserve
decline, not the least of
severe
were
sulted in the past from
tions and false hopes
that credit
rate
the
which
disaster, and alluring but coordination
Federal
Because
were
1,734,865 shares
Southern
neces¬
discovered
excessive
that
to
seem to offer a
realistic promise of avoiding some
of the extremes which have re¬
whatever.
two sep¬
group,
offered to holders of record
The
is
probable
Thursday, February 14, 1957
.
ment, but they do
fatuous schemes for
perpetual ad¬
without any readjustments
reasons
There
it
less
or
signing
today in the ratio of
and
relatively
more
in
tion.
the
market
bankers can
to
operation
through
on
signing periods
expire
more
effective
however
Whenever
tions of
sary.
5
to
expansion is likely to be curbed
somewhat, there are always volu¬
ble protests,
exaggerated predic¬
indica¬
participating
are
size of the
The
get
is
Federal
have
These concepts do not, as we
have said before, promise a
degree
of stability in the
general price
level or in business
activity which
vance
who
the
the
available, and that
a
the
carried
business
ever
the
business.
forward
quiet
tendency
to
modify
its
firmness "over
of
Meanwhile,
underwriting
with
to
policy
next
assist
a
Reserve
current
the
even
that
possible
that money costs
more,
less readily
at the offices of the syndicate
arate
way as
some
minute
it
to
restraint
any
is
to
matter of fact, dealers and
a
same
since the turn of the year,
buyers could take heart.
last
managers late
the
have
business
Deal
disposition
possible
be
brokers
obliga¬
tions.
Moreover,
several
sub¬
stantial "layoffs" of stock against
that
of
schedule.
dealers'
corporate
"Rights"
some
were
would
reassur¬
been
up
-
of
as
been
Big
difficult
It
the
.
Reserve
finance
political support for the execution
anticipatory operations.
was
make
Finally, it is always
sary.
There
of
Money has to be ob¬
to
less
or
as
Another
business
these commitments.
(12)
the
equity
market, the group has been doing
well in its
when
par
are
the
look for
noticeably
in bond circles
meet
less
the
10
Considering
of
tainable
ratio
each
the
authorities
begin to move
inventories tend to
outstanding.
30
behavior
Sometimes
knowledge.
re¬
slowly,
pile up momentarily because many
commitments to buy are already
a
has
quieted
but is viewed
doing decidedly
well considering the behavior of
stocks in the last fortnight.
Though demand has simmered
down a bit, observers find that
people
are
not
backing
away
down
list,
Jan.
new
at
week
available
are
of record
s
this
of
require
declines and goods
share.
a
ratios
deposits would
more
just completed its fifth
price of $49
to
(11)
the stock against "rights" pur¬
in the open market.
The
chased
group has
minimum
scribed
.
Federal Re¬
to
seem
have
done
extremely well, not only in
of policy but also in
publicizing the nature and signifi¬
cance of their
policy in terms as
simple as possible, to the end that
it may be
clearly known, widely
the
matter
understood, and receive the
mum
maxi¬
attainable support.
Even with this excellent
policy,
however, they may not be able
wholly to prevent a material re¬
cession
at
years
bank
much
more
some
point.
loans
have
In
recent
expanded
rapidly than the vol¬
ume
of goods produced and the
volume of deposits. Jo what ex¬
tent business has become
ent
on
crease
this
abnormal
ly clear. It will at
to
depend¬
rate
of
in¬
in bank loans is not entire¬
abate,, because
some
time have
James S- Graham
ST.
PAUL, jMinn.^-JamesyS.,
Graham, AIlis65i'-Willidrns Co.,. St.
Paul,-Minn.,.was elected Chairman
of District Committee No. 4
(Min¬
nesota^ Montana,1 North; Dakota
very noticeable and
South/ Dakota > of .' the Na¬
inflation would otherwise
result!; tional Association: .of- Securities
After every recent war there has Dealers.
been at some time a
very serious
Mr/G£aham*succeeds Morlan H.
period of readjustment.
In the Bishop* M. H~
Bishop & Co., Min¬
1930s there
were-many causes for
,
neapolis.-
(813)
Number 5612
185
Volume
.
.
FIF
crossed the
Dreyfus Fund assets
Assets
$9,972,747 compared
Begins Scheduled Training
Program for Fund Salesmen
$10,000,000 mark on Jan. 4.
Dec. 31
were
with $5,639,306 a
went
value
sold
shares
93,819 cashed in.
to
4.916
increased
533,383
7.135.
and
America's
in
In¬
total
four
income amounted to 21
"that
and
a
he said,
"It seems probable,"
assets.
:
support of his long-range
forecast, Mr. Axe offered a fact
.
appraisal of the spectacular growth of these investment
companies since 1940. Total-net assets, he said,'fose from $448,-
$9,046,431,000 on Dec. 31,' 1956. • v ' ,
doubled every three and a half years
since 1941," he continued.
"This is*a remarkable rate of growth
not equalled by other forms of investment or savings and indeed
equalled or surpassed by few other industries.
Dec. 31, 1940, to
; 000,000 on
"They have practically
:
-
their
WRITE FOR
prospectus to
folder and
i
times
information
mutual
Established 1930
<
'
i
Brood way; Hew
; 120
"
These
the
in
more
:
.?
~
"Net
said Mr.
Incorporated
INVESTING^
fUTURi
INCOME?
I
f
investors.
in
mm
selected
CURRENT
INCOME?
shown
A
«
mutual fund whose
first
objective
is
to
by mutual funds
in the rate of increase
in 1956 (total assets rose $1,208,907,000
"probably attributable to the Middle East
crisis, which caused a decline in the general level of security
prices, and substantial price declines in high-grade fixed-inddme
securities owing to the rise in interest rates.
"The moderate slowing of the rate of increase," he observed,
"marks only the third time since 1941 that anything of this kind
has occurred.
Furthermore, since then, the total net assets of
the mutual funds have qever shown a decline from the end of
one year to another despite the substantial declines in the general
level of security prices in 1946 and 1953."
ahead.
I Income Fund
mutual funds in 1956.
moderate deceleration
the
found
during the year)
CAPITAL and
Incorporated
for
and net sales of
He
invested
INCOME in the years
NVESTING
gross
securities
for possible
GROWTH of
allowing for duplications."
'
"•
-•, ' ' ' ' *
called attention to the new all-time high records in
Axe
Mr.
.
list of
a
per
1956, also not
«
Ettablithed 1925
mutual fund
A
shareholder have also increased sharply,";
Axe—"from $1,513 on Dec.-31, 1940, to $3,593 on Dec. 31,
assets
as
return
^current income °„;
Change Name,
And
A
prospectus
fund is
your
on
available from
investment dealer.
The Parker.Corporation
"
200
Berkeley Street
Boston, Mass.
Maitland,
Fund. Inc.,
W.
James
of
Hudson
that
Messrs.
Claude
and
Walker
W.
both
partners of Hemphill, Noyes
President
announced
&
the annual share¬
Feb. 28, 1957.
said
Coincidentally, Mr. Maitland
-
that shareholders
be asked
of
of the Fund will
Agreement with Fiduciary
Company of New
bankers
inyestment
Co.,
Television
ment of
sion
-
of the Televi¬
sponsor
Electronics Fund,
withdrawn
for
writer
and
Stock
Chicago, investment man¬
and
ager
as
year.
Trust
Inc.,
principal
has
under¬
Hudson Fund.
Pennroad Buys
dealer
Eastern
Investment Advisor,
and in¬
important
producing
"
Fund of Canada
to
FIF
ex¬
end of
three-month
a
trial
Share Value
Up to $32
Net assets of New York
of Canada, Ltd.
Fund
Capital
on
totaled $27,879,299,
- -
securities had
value of $23,347,-
a
General Sales 814, which represented 84% of
Investment Asso¬ total net assets and was made up
Sutphen,
Manager of FIF.
ciates, is acting as
coordinator of
of shares of 54
companies, includ¬
and Herbert Johnson, ing 12 companies operating out¬
Vice-President, as a lecturer.
side of Canada.
The balance of
According to Mr. Sutphen, a net
assets
was * in
short-term
nominal fee of $1 is charged each
liquid holdings, 11%, and other
registrant which he — not the priorities, 5%.
dealer—must pay out of his own
Major group holdings of equities
the program
*
pocket.
• \
"Actually/'- he- explained,
oil and gas shares, 18.39% of
"the net assets; metals and mining,
for coffee breaks dur¬ 17.15%; utilities, 10.94%; food and
ing sessions. Our only reason for merchandising,
9.46%;
paper,
making the charge is to give the
Continued on page 43
salesman the feeling he has a stake
were
dollar goes
-
in the course
and an obligation to
himself to get the
most out of it."
will put sub¬
FIF program
The
stantial emphasis on
both Federal
regulations dealing with the sale
of mutual funds and the National
Association of Security Dealers'
Statement of Policy.
curriculum balances these
of the trade with
a
The
essentials
basic selling
thorough grounding in
techniques and a detailed study
of the history and background of
the mutual fund industry.
this
"With
tered
a
as
type
Mr.
mutual fund salesman.
principal goal is. to provide
dealer :,toith
an >completely
"Our
the
equipped
selling(iorgahization- so
more/ tirpe to
production ort ad¬
ministration, or both."
Absolute requirements for "pass¬
that
he> can devote
sales
ing" the course are
100% attend¬
assigned supplementary
reading and successful completion
road
Corp. bought back 121,900
of
the
final
examination. The
of its own shares for a cost of
examination covers the entire cur¬
$1,840,557, an average price of riculum and is "a deadly serious
writer and Associate Investment
$15.10 a .share, or 24% below ap¬ business," Mr. Sutphen said. Those
Advisor.;
<■
who pass it receive a wallet-sized
plicable net asset value a share.
They will also be asked to re¬
certificate of satisfactory comple¬
and to
approve
a new agreement with
Hemphill, Noyes & Co., as Under¬
pal
In
in,
potential for,
terest.
T.'
,
of
Robert
.either
York, as Princi¬
man's
terest
of the program
curriculum,"
Maitland
Mr.
measure
his
of balanced
Sutphen said,
further
stated "the serious student should be
Shares Manage¬ ready to begin his field work as
soon as he becomes formally regis¬
Exchange.
that
Jr.,
Advisory
Investment
the
continuation
to approve
Stevenson,
members of The New York
holders meeting on
\y;<
Leaman
F.
tors,
■
at
past
and to elect two new direc¬
will be asked
to approve changing the name to
Fiduciary Mutual Investing Com-*
Inc.
Fund
the
year
000,000 Mutual Fund
pany,
of
have
of this $7,-
the stockholders
directors
served during the
who
Sponsor
each
five
elect
Hudson Fund To
.
by the
applied."
'
.
accurate
Dec. 31
equal to $32 a
share on 871,312 outstanding
shares, according to the Fund's
for each of the abbreviated ex¬ annual
report for 1956. The per
perimental sessions
to a later share net asset value compared
date," he reported, "and, although with $28.54 at the end of the pre¬
they're not eligible; salesmen from ceding year.
as far away
as New Mexico have
The fund's investments in equity
duplications—
shareholders own shares
.
.
an
indicate maxi¬
mum
registration will continue
indefinitely, Mr. Bacon said
"We've had to defer applications
ownership of mutual fund
well-known fact that many
than one fund.
(i
require¬
examination
yardstick with which to
results.
eligible
are
double
to
Results
run
explained, do > not allow for
totals, he
The
(3)
ment offers the dealer
125
the
States
pected
■
"and it is a
over
salesmen to the
"school," with the number
shares fully as
.
York 5,-N. Y.
a fuller under¬
is expected of
standing of what
him.
~
assign
lqan associations in-
remarkable. "The number of mutual fund shareholders in the
United States," he said, "has increased from
296,000 on Dec. 31, 1940, to 2,518,049 on Dec. 31, 1956. It has
tended to double every year since 1941."
I
-
f
"
the ever-widening
present,
United
increase should enable the
funds to reach the $20 billion-mark in total net assets by
Mr. Axe found
gives the salesman
sponsoring
offices.
Avenue
organizations ' in
multiplied
of
rate
and fundamental sales¬
manship "livens" the lectures and
ground
consisting
course,
At
example, the
funds in the United, Sjtates,
of this
continuance
the end of I960.",..
;
NATIONAL SECURITIES &
RESEARCH CORPORATION
Fifth
life insurance companies doubled
reserves, mutual savings
banks increased their assets 1.8
and commercial bank time deposits increased 1.5 times.
"A
dealer or
your investment
The
their assets 4.4 times,
creased
-
all mutual
of
In the same period, savings and
6.1 times.
;
1
; free
assets
which ended Dec. 31, 1955V *for
decade
the
"In
net
*
FIF
by
(4) By reviewing the Statement
of six
two-hour evening sessions, will be of Policy and the SEC regulations,
the course buoys the dealer's con¬
held during the. first two weeks
of
each
mopth, throughout the fidence that his salesman will
adhere to both "the letter and the
calendar year. It will be limited
spirit" of laws and -^restrictions
to 50 salesmen, and will get un¬
derway next week at FIF's 500 designed to protect the public in¬
' V"
and figure
-
here
Bacon, President of the
firm, said yesterday. ;
is one, will be
recession in business, if indeed there
*
In
I
FUND
provide
sales
fund
any
mild."
MUTUAL
sufficient business activity and
firm basis for new high records
1957,. Mr. Axe foresees
mutual
in
economist
according to Emerson W. Axe,
Axe-Houghton mutual funds.
of the
personal income to
-
more
from now,
years
For
INVESTMENT
and
Invest¬
ment Associates, Eastern distribu¬
tors of Financial Industrial Fund.
"It is not only the first such
training program to run on a
fixed, permanent schedule, but
probably the first to require a
written examination," Charles E.
mutual funds should have $20 billion
than four million shareholders by
open-end
assets
net
and President
cents.
A
The balanced curriculum of reg¬
ulatory data, fund industry back¬
established
Four Years
Mutual Funds to Double in
Unrealized ap¬
preciation increased 1,039,783.
vestment
industry's first
regularly scheduled training course
for
dealer
salesmen
has
been
The mutual fund
By ROBERT R. RICH
profits.
cluding 72.12 cents a share
Shareholders
Mutual Funds
Share
year ago.
11.2% to $9.43 in¬
up
41
Financial Chronicle
The Commercial and
.
1956, the $101 million Penn¬
ance,
.
33rd CONSECUTIVE
DIVIDEND
-
The Directors
tion.
"The
flunk-outs," he continued,
"may either repeat the course or
return to the dealer for personal
recommend one
the other of these steps but,
course, leave it up to the dealer
make the final decision."
instruction.
Fund
investment fund ef diversified
stocks selected for investment
,
isa mutual
i
common
quality and income >■ possibilities. Mail v
this ad for free booklst-proepectus to
A Common
.
_
^
,
r*
«
»
«
«
ONE WALL
.v!..'
,
income
growtn
lor
us
Bnarenum
Prospectus upon
request
STREET, NEW YORK 5
Mr.
Bacon
said initial response
to the program
and
gave
has been "terrific,"
Lord, Abbett
—
Chicago
—
& Go.
Atlanta
Lob
.
(1) The regular, monthly sched¬
of courses enables him to
his men to sales training
methodically
and according to
assign
Angeles
dealer
four reasons for
uling
New York
Address.
to
enthusiasm:
'
Name_
Fund
...
»
CALVIN BULLOCK, LTD.
Established 1894
of
Stock Investment
.
.
.....
_
or
We
need.
,'
.
f'
Electronics
declared
per
a
share
income,
of Television-
Fund, Inc. have
dividend of 8^
Jgjwn investment
payable February
28, 1957, to
shareholders
7,1957.
of record February
February 7,1957
(814)
The Commercial and Financial Chronicle
The
Indications of Current
latest week
Business Activity
week
Latest
AMERICAN
IRON AND STEEL INSTITUTE:
Indicated 6teel operations (percent of capacity)
Equivalent toSteel ingots and castings (net tons)
following statistical tabulations
Month
Year
Week
Ago
Ago
§96.5
Feb. 17
month ended
Previous
Week
Feb. 17
or
*97.1
§2,469,000
month available.
or
96.4
*2,485,000
98.8
2,467,080
AMERICAN PETROLEUM INSTITUTE:
Crude
42
oil
and
gallons
Crude
condensate
(bbis. of
stills—daily average (bbls.)
Gasoline output (bbls.)
Kerosene output (bbls.)
*
Distillate
fuel
oil output
Feb.
1
l
7,422,050
118,202,000
Feb.
1
Feb,
(bbls.)
.Feb.
Residual fuel oil output (bbls.)
Feb.
Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
Feb.
Kerosene (bbls.) at
i
Feb..
Distillate fuel oil (bbls.) at
Feb.
7,081,200
Domestic
shipments
8,290,000
8,068,000
Domestic
warehouse
27,162,000
28,209,000
26,139,000
Dollar
1
2,825,000
2,487,000
2,899,000
2,814,000
Based
1
14,615,000
14,333,000
14,468,000
13,535,000
8,687,000
8,702,000
8,745,000
9,341,000
CIVIL
l
196,351,000
24,622,000
193,248,000
25,619,000
187,167,000
1
31,194,000
20,357,000
1
100,369,000
•106,4.>0,000
132,942,000
84,230,000
1
38,212,000
39,531,000
42,731,000
38,570,000
647,972
665,745
561,519
2
629,877
632,757
527,274
BUILDING
(U. S. BUREAU OF MINES):
coal and lignite (tons)
anthracite
STORE
(tons)
SALES
ELECTRIC
Electric output
New
661,733
Feb.
7
$428,491,000
$406,802,000
Feb.
7
269,307,000
223,012,000
$376,052,000
166,108,000
AND
100
INDUSTRIAL)
DUN
—
7
159,184,000
183,790,000
209,944,000
Feb.
7
132,697,000
7
128,060,000
31,124,000
154,370,000
Feb.
29,420,000
77,247,000
Feb.
2
Feb.
2.
399,292,000
M. J.
16,742,000
148,399,000
142,870,000
99,781.000
$966,757,000
$924,443,000
$641,680,000
S.
DEPT.
$3,800
$3,258
OF
$3,370
units
and
8,775,000
*10,170,000
7,415,000
573,000
531,000
326,000
.32,841,000
Other
—
_
alterations
Feb.
2
Feb.
9
94
96
93
12,019,000
12,322,000
building
a
institutional
320
11,343,000
256
5
5.622c
5.622c
5.622c
5.174c
271
223
272
288
270
128
131
144
157
161
226
235
186
utility
Other
and
5
$62.90
$62.90
$62.90
$59.09
Residential
5
$53,83
$55.50
$60.83
$49.50
Nonresidential
Feb.
6
6
33.600C
35.500c
35.550c
43.900c
Hospital and
—
31.225c
33.200c
33.275c
45.575c
Other
building
building
Export
—Feb.
98
369
Lead (New York)
at
Feb.
6
Lead
Louis)
at
Feb.
6
15.800c
15.800c
15.800c
15.800c
Military facilities
Highway
(delivered)
at
Feb.
6
14.000c
14.000c
14.000c
14.000c
Sewer
Feb.
6
(St.
fZinc
Zinc
(East St.
Aluminum
Louis)
MOODY'S BOND
U. 8.
at—
(primary pig. 99% ) at
(New York) at
Straits tin
13.500c
1...
__
„
"
A
Railroad Group
Public Utilities Group
Industrials Group
MOODY'S BOND
13.500c
—*
YIELD
DAILY
AVERAGES;
Government Bonds
25.000c
25.000c
22.500c
102.750c
99.875c
99.000c
92.59
91.98
90.19
95.88
Feb. 12
96.23
95.92
95.16
107.98
101.14
100.81
99.20
111.62
of
93.73
08.25
97.47
109.97
New
72
267
10
11
10
898
1,134
823
27
30
21
338
286
33
36
30
200
210
186
23
28
Group
Group
Group
.
—
-
96.23
96.23
95.77
107.98
Middle Atlantic
88.95
88.67
102.80
South Atlantic
.
-
95.16
94.86
93.97
106.39
East
96.54
96.38
96.38
108.34
South
96.85
96.54
95.01
109.42
3.10
3.15
3.99
r
3.83
Feb. 12
3.99
12
4.47
3.32
4.06
3.28
3.80
3.08
DEALERS
3.86
.3.91
3.17
3.99
4.49
*
,
4.06
4.02
f
4.51
3.98
3.98
3.26
4.07
3.20
—Feb. 12
'419.7
424.2
434.6
407.3
4.08
New
4.14
—
1
—
AND
„
N.
ON
370,583
276,706
Feb.
Feb.
94
96
•*75
101
471,744
380,664
**454,359
651,772
234,936
282,631
**135.504
405,935
**102.280
291,570
111.13
110.78
items
Jan. 19
$76,462,431
Jan. 19
1,076,150
$77,553,576
$62,131,961
!
1,078,221
10,855
1,087,570
Dairy
4,481
1,065,295
1,009,906
1,083,089
1,045,635
Jan. 19
$53,947,979
$52,253,290
$52,588,609
$53,324,873
Jan. 19
246,970
214,180
281,890
»
<??.
.»•}
shares
*.'• n.v,.
—Jan. 19
•
'"•<
home
109.5
111.3
107.9
1
H27.4
127.0
123.9
—_
—
electricity
and
fuel
.—
Other
Public
214,180
281,890
266,490
120.4
113.8
111.5
136.1
•
u
,652,290
699,070
446,220
604,600
Other
/
.
t".
f <
f-r
108.6
——
—
Jan. 19
ACCOUNT
Jan. 19
.
Crude
,>
584,780
613,210
417,840
373,180
-*12,277,850
11,829,160
11,383,590
11,529,320
-*■
12,862,430
12,442,370
11,801,430
1,491,160
1,595,140
1,492,610
Jan. 19
242,290
285,740
234.210
212,650
1,384,090
1,481,530
1,131,440
1,419,160
1,626,380
1,767,270
1,365,650
1,631,810
_Jan. 19
314,310
349,050
307,430
Jan. 19
267,550
31,500
22,709
19,000
Jan. 19
23,740
384,460
343,700
258,410
340,510
Jan. 19-
415,960
366,400
277,410
364,250
on
sales
Total sales
Other transactions initiated
Total purchases
off
In
the
Jan. 19
579,442
528,371
582,665
19
565,580
98,570
139,950
83,090
55,920
I
Jan. 19
581,957
558,625
584,129
Jan. 19
599,217
680,527
698,575
667,219
655,137
'
Total sales
Total round-lot transactions for
account of members—
purchases
Short sales
Other sales
Total sales
I
'
I
WHOLESALE PRICES, NEW SERIES
—
U.
S.
DEPT.
ZIII"
F
Jan. 19
2,384,912
2,472,561
2,382,705
2,252,040
Jan. 19
372,360
2,350,507
448,390
2,383,855
336,300
292,310
Jan. 19
1,973,979
Jan. 19
2,358,887
2,722,867
2,832,245
2,310,279
2,651,197
_
—
All commodities other then farm and
foods
A..(tons of
116.9
116.3
OF
89.4
88.2
84.7
104.3
103.5
98.7
Feb.
83.3
82.9
80.3
72.2
125.2
124.7
120.2
~
§Eased on
tNumber of
basis
at
new
annual
orders
centers
not
where
capacity
reported
freight
All
106.8
103,089
*99,513
104,098
129,839
132,970
145,423
99,594
114,524
139,512
120,645
116,516
61,554
121 4
•
117.9
-
pounds)—
end
of
period
(tons
'
13,097,798
14,373,438
AND PAYROLLS—U. S.
DEPT.
LABOR—REVISED SERIES—Month of
indexes
(1947-49-
manufacturing
Payroll
—
indexes
13.329,000
'13,368,000
7,807,000
*7,813,000
7,838,000
5,522,000
*5,555,000
5,613,000
.—
,
(1947-49
—
Durable goods
Nondurable goods
*108.1
108.7
171.1
*168.3
163.7
—
17.027.000
17,134,000
*17.160,000
10.039,000
*10,033,000
9,886,000
7,095,000
*7,127,000
7,141,000
$84.05
FACTORY EARNINGS AND
HOURS—WEEKLY
AVERAGE
ESTIMATE—U.
S.
of
December:
OF
,
,
$82.42
$79.71
9134
*88.99
goods
86.52
74.03
*73.26
70.30
manufacturing
41 0
40.6
41.3
41.9
*41.2
42 0
39.8
*39.6
40.4
Durable
goods
Nondurable
Hours—
All
Durable
goods
:
,
-e-—-
Hourly Earnings—
All
manufacturing
*
'
Durable
goous
b^wuo
■—
_
:
—~
-
Nondurable- goods
:
■
■.
-
•
'"
Louis
j
107.8
manufac¬
manufacturing
Nondurable goods
St."
13.451,000
Average=100)— All
number
of
employees in
turing industries—
All
;
Avge.=100)—
manufacturing
Estimated
133,459.150 tone
since introduction of
Ekst
117.8
13C.2
120.6
pounds)
manufacturing (production workers)
goods
Nondurable goods
ot
from
167.3
134.5
•
December:
(
..."
127 3
-
109.0
—-
•Revised figure.
^Includes 769,000 barrels of
foreign crude runs.
Jan. 1, 1957, as against Jan,
1, 1956 basis of 128.363,090 tons.
hly Investment Plan, tPrime Western Zinc sold on delivered
exceeds <me-haJf cent a pound.
**FIve days ended Jan. 5, 1957.
173.4
123.5
123.2
Durable
111.9
88.9
104.4
125.1
133.2
174.1
123.3
123.3
Weekly EarningsAll
manufacturing
Feb.
-Feb.
133.1
of Dec.:
.DEPT.
116.8
91.1
(DEPT. OF COMMERCE)—
LABOR—Month
"~Feb
11 ".8
92.1
A.-—
2,000
at
93.1
126.2
92.2
EMPLOYMENT
Employment
OF
Feb
'
S-
106.1
—s
pounds)—
2,000
104.7
108.4
-w.-
(running bales)_
100):
Processed foods
U.
COTTON GINNING
As of Jan. 16
Commodity Group—
All
of
1C7.0
All
floor—
Short sales
Other sales
(tons
S.
4
*
120.7
126.4
'
.
199.3
month
U.
2,000
128.0
"103.4
121.8
services
Refined copper stocks
of 2,000
pounds)
the floor—
Total purchases
Short sales
of
,
100.4
134.7
Deliveries to fabricators—
11,902,500
1,418,910
—
recreation
and
(tons
-
Jan. 19
Other transactions Initiated
—-
care
Copper production in
i
MEM¬
OF
—
COPPER INSTITUTE—For
™
Refined
FOR
-
—
goods
103.8
124.5
.100.3
——
—
ana
134.3
104.1
124.8
107.0
—
girls'
—
113.7
112.0
care
Readlng
115.2
———,
...
46'970
2
114.2
94.6
131.1
—
266,490
110.7
123.0
Transportation
Medical
107.7
115.3
133.8
,——
apparel
98.8
111.1
117.4
134.2
oil
boys'
98.0
111.3
123.5
operation
and
.
r—-
——
and
114.7
,112.9
vegetables
at
117.8
112.9
111.2
—.—,————
and
Men's
4,229
Jan. 19
Meats
foods
Footwear
?
Jan. 19
=
lin.o
a—
—
————
—
-
.
Jan. 19
—'
TRANSACTIONS
(1947-49
and
Other
Apparel
sales—
sales
—
45,121,585
303,970,033
products
Fruits
Personal
*—Jan. 19
:
t.
commodities
Farm products
74,795,675
415,008,191
Rent
1,049,864
8,315
Jan. 19
Total sales
LABOR
49,355,515
337,000,313
—
1047-19=100—
and bakery products.
Meats, poultry and fish
1,450,274
$75,474,442
t- Short sales
<
Other sales
Total
—
:
Food at home
Jan. 19
Total sales
;
—
—
—
Food
107.08
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—
•
INDEX
oi December:
Month
All
Household
1,231,451
$349,091,618
74,577,168
27,755,208
27,295,395
17,593,663
15,900,479
—
PRICE
Private
sales
Short 6ales
Other
City..
—
Houseiurnishings
Jan. 19
—
;jTotf! purchases
York
States—
Solid fuels
1,564,230
92,174,770
$489,803,866
v
—<——~——
,
Gas
1,527,496
96,331,149
$386,355,828
'61,387,779
—
_—a.—
.
67,236,029
27,425,666
70,988,203
59,894,159
21,888,227
16,435,783
66,582,711
70,965,271
—
Round-lot purchases by dealers—
,
$18,640,840
121,633,524
30,956,562
87,523,427
—
,
Women's
other sales
round-lot
—
,—
Housing
111.03
Jan. 19
TOTAL ROUND-LOT STOCK SALES ON* THE'N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
FOR ACCOUNT OF MEMBERS (SHARES)fVi - '
'
ROUND-LOT
$27,884,812
73,991,725
34,875,947
——da—
Central
CONSUMER
STOCK
Y.
Short sales
Other
$15,309,815
—
■
shares
sales
——
.—1
Outside New York
City
" 3.37
T?eu.
Feb.
Feb.
—-
SPECIALISTS
Number of shares—Total
Total
10
CITIES—Month
Cereals
Round-lot sales by dealers—
of
16
&
—
3.28
3.97
Dollar value
Number
22
44
3.58
,
.
3.97
Odd-lot purchases by dealers (customers' sales)—
Nupiber of orders—Customers' total sales
Customers' short sales
Other
80
36
66
*
14
DUN
—
—
EXCHANGE — SECURITIES EXCHANGE COMMISSION:
Odd-lot sales by dealers (customers' purchases)—t
Dollar value
110
32
—
Total United
OIL, PAINT AND DRUG REPORTER PRICE INDEX—
tr
263
56
—
We«t Central
2.81
4.01
3.70
3.95
.
AVERAGE —100
INC.—215
Central
Pacific
STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD-
Customers'
420
100
—!
89.23
Feb. 12
Feb. 12
Feb. 12
:
Percentage of activity
Unfilled orders (tons) at end of period
of
250
December:
England
Feb. 12
Feb. 12
Utilities
Number
97
:
VALUATION
Mountain
.
Orders received (tons)
Production (tons)
LOT
_!
■
MOODY'S COMMODITY INDEX
1949
50
118
development
PERMIT
BRADSTREET,
NATIONAL PAPERBOARD ASSOCIATION:
"
64
108
enterprises——.,
and
20
55
—
public..,
Feb. 12
■
—1—
—
BUILDING
Feb. 12
Feb. 12
.
Public
service
other
30
80
329
311
water
Conservation
All
Feb. 12
j,-eb. 12
Industrials
and
Public
13.500c
25.000c
102.250c
3.68
Railroad
13.500c
6
6
Feb. 12
Feb. 12
Feb-12
Average corporate
.
16.000c
Feb.
Aaa
a
16.000c
Feb.
Feb. 12
Average corporate
Aa
U. S.
16,000c
36
75
PRICES DAILY AVERAGES:
Government Bonds
Aaa
16.000c
33
;
293
i—
building
20
445
institutional
nonresidential
27
402
Educational
refinery at
refinery at
62
54
—
Industrial
QUOTATIONS):
copper—
Domestic
27
'
103
„
Electrolytic
44
31
34
Public Construction
Feb.
75
48
50
telegraph.,
public utility
private.—.,
Feb.
73
32
90
a.
other
109
46
25
-
construction
Telephone
236
All
Feb.
31
679
—
;
287
42
794
recreational
Miscellaneous
Public
88
♦
40
.
and
and
1,279
1,160
„
768
270
—,
Railroad
7
126
—
nonresidential
Hospital
90
12,327,000
1,145
102
i
$2,435
1,313
.
1,060
j
Educational
623,000
,
$2,666
1,202
building (nonfaim)—.
Religious
9,755,000
,
•
Office buildings and
warehouses
Stores, restaurants, and garages^
107,774,000
I
,
$2,472
(nonfarm)
Commercial
140,615,000
•I
Social
Feb.
Pig iron (per gross ton)
Scrap steel (per gross ton)
&
9,700,000
—
Industrial
&
BRADSTRJEET, INC
(E.
dwelling
Farm
IRON AGE COMPOSITE PRICES:
Finished steel (per lb.)
METAL PRICES
54,125,000
1,859,000
December (in millions):
1
building
Nonresidential
$539,907,000
INSTITUTE:
(in 000 kwh.)
(COMMERCIAL
FAILURES
=
8,950,000
183,954,000
construction
Residential
680,989
INDEX—FEDERAL RESERVE
SYSTEM—1947-49 AVERAGE
EDISON
new
Additions
Feb.
municipal
Pennsylvania
210,400,000
15,381,000
-
CONSTRUCTION—U.
LABOR—Month of
Total
COAL OUTPUT
DEPARTMENT
$251,682,000
295.077,000
13,443,000
213,114,000
between
I
_
Nonhousekeeping
Federal
Bituminous
shipped
182,656,000
ENGINEERING
—
Public construction
and
$277,461,000
329,315,000
—
2
construction
State
—
Private Construction
Feb.
received from conaections (no. of cars)—Feb.
CONSTRUCTION
and
Ago
$260,627,000
credits
stored
Year
Month
31:
I
goods
Previous
.
NEWS-RECORD:
Total U. S. construction
Private
Dec.
Latest
Month
Total
Feb.
freight loaded (number of cars)
ENGINEERING
of
of that dateg
BANK
exchange
on
foreign countries
ASSOCIATION OF AMERICAN RAILROADS:
Revenue
YORK—As
7,416,700
7,395,500
8,189,000
26,850,000
1
-
Residual fuel oil (bbls.) at
Revenue freight
NEW
either for the
are
are as
OUT¬
Exports
—Feb.
.
to
runs
of quotations,
cases
Imports
output—daily average
each)
in
or,
DOLLAR
ACCEPTANCES
STANDING—FEDERAL RESERVE
OF
Thursday, February 14, 1957
production and other figures for tlte
cover
BANKERS'
2,433,000
4
Dates shown in first column
that date,
on
t
.
.,
&2.05
$2.03
2.18
1.86
" "
'
_V
$193
2 16
2-06
1.85
1.74
■r
Financial Chronicle
The Commercial and
Number 5612
185
Volume
Investors
Continued from page 41
„
(815)
net
Total
assets
Investors menting
of
Group Canadian Fund Ltd., most
would
5.49%; pipe-
8.24%; life insurance,
^penditures will
h$j?h rate, probably
a
Yhjrease
an
unrealized appreciation
increased $2,157,-
likely
nificant
in
total unrealized
appreciation of $6,271,814 at the
824, resulting in a
to
decline^
to show a sig¬
t
•
•
larger expenditures for
assume
force is
report described as "re¬
Canada's increase in
rising.
markable"
residential
addition'!^ seems reasonable
consu#i|)tiort,
personal
end of the year.
1956
over
plough
levels,
even*
building is
investments
The
at
showing
$608,111, net realized profits
sales of securities were $395,-
633 while
the labor
as
expand$£ig and wages are
Nonagfciiultural employ-'
increased; libout 5% in 1956.
ment
physical output of goods and in The
industrial'l$bor force is grow¬
total output of goods and services.
ing not only fi'pm the natural in¬
The report said that "in 1956 Can¬
crease
in population but also by
ada again enjoyed an outstanding
shifts from
far|a to nonfarm em¬
rate of growth. The value of the
ployment andv^hrough immigra¬
total output of Canadian
goods tion.
The
naSMral increase in
and services is estimated to have
Canada's
population is 2%
billion, 11% higher
than
the
$26.8 billion of 1955,
which in turn was
10% bigher
than in 1954. In the United States
been about $30
1956 the gain
in
highe^
annum,
a
United
States,!
inflow
net
product was about 5J/2%
as against an improvement of 8%
in the preceding year.
^nd including the
overseas
the
approaches 3%."
increased
assets to $11,634,065
net
the year
rate than in the
Fund
Wisconsin
total
per
f|pm
growth
overall
in the gross na¬
tional
its
fcpr
endeet|Dec. 31, 1956 from
in $10,644,941 th^ previous year, ac¬
Canada in 1956, they continued, cording to the annual report re¬
was a record level of commercial
leased today. *
and
industrial
capital expendi¬
Net asset value
for
basis
The
the
Electric Stocks
upsurge
per
tures, whereas in 1955 residential
construction
was
the
feature.
$5.42, equal to $5.86
including
44
the
a
share
figures, Mr.
in
his
letter
to
said: "As a matter
capital
of
comparison, it should be borne
in mind that income for 1955
was
of
Services, Inc., rose to sub-normal, since the fund was in
$107,677,081
(Canadian) ,as
of a period of organization and op¬
Dec. 31, 1956, a gain of $56,037,- erated for only eight months."
In accordance with the. fund's;
278 or approximately 109% over
the preceding year-end total of stated policy, net income is •' not
distributed
in
$51,639,803 (Canadian), Joseph M.
dividends, but is
Fitzsimmons,
chairman
of
the held and, invested in additional
board and president of the fund, securities for the benefit of share¬
announced in the company's sec¬
Total
holders.
accumulation
of
ond annual report.
The report is net income retained for reinvest¬
the first, however, to cover a full ment amounted to $1,552,250 at
the year end.
year's
operation,
inasmuch
as
shares
the
of
initially
the
to
offered
were
public
in
Fitzsimmons
Mr.
1955,
fund
May
pointed
of
the
fund's
objectives,
emphasis was piaced on
purchases of Canadian securities
with promise of future growth.
continued
out.
Net asset
fund
16%
to
$5.85
th£"
at
with
$5.06
share
at
market
held
1956
.yalue of shares of the
increased
share
approximately
S-. dollars) per
(U.
end, compared
S. dollars)
per
year
(U.
the
close
value
of
the
by
the
Dec.
31,
by $5,704,694
with $1,at the close
Common
1955.
vertible
shares
of
outstanding
into
stocks
comm.on
or
rights
ac¬
counted for 5.48%. Cash and other
net
assets
amounted
Diversification
industry
by
as
to
8.90%.
at
groups,
31,
market
1956,
was
follows: Petroleum and natural
increased
during the past year
10,211,428 to 19,177,199, and
from
and
metals
and
the number of shareholders from
18.25%; public utilities 11.55%;
expenditures amounted
gains distribution made Jan. 31,
to about $7.5 billion, or roughly
pulp, paper and lumber 10.88%;
1956. This compares with $5.84 a 30,000 to 44,000. Investors Group
Canadian Fund Ltd. is now the
one-quarter of the gross national share at 1955's year end.
banks
9.41 %;
Four
merchandising
product. Not since early in the quarterly dividends totaling 20 largest Canadian fund distributed
5.50%; steel and fabricators
century has this factor accounted cents a share were paid in 1956 ir\ the United States, the report
stated.
4.42%; installment finance 3.45%;
for so large a proportion, and it is
from
investment
income,
com¬
automobile and parts 2%; build¬
hard
to
find
any
other indus¬
Net investment income for the
pared with 19 cents in 1955. From
trialized
free-enterprise
society
profits on sale of its portfolio year 1956 amounted to $1,471,381 ing 1.95%; railroad and railroad
which has devoted so large a por¬
holdings the fund also passed on (Canadian), compared with $391,- equipment 1.51%; others .71%.
tion of its total activity to develop
611 for the preceding year. Com$560,326 to shareholders as a capi¬
and
In
memorandum to investment
a
out
that
"From what is
capital
tal
presently known
plans,
investment
gains distribution of 26 cents
share
a
it
in
not
*
stocks
of
consistently or 'in a 7
straight line"; that even they have
move
their
up
periods
best
time
hesitation
of
consolidation.
and
Suggesting that the
to
buy
such
growth
groups is when they have not done
well, the bulletin confirms Dis¬
tributors Group's own conviction
that the long-term growth from
such
stocks
still
appears
to
be
unquestioned.
Personal
Richard
Progress
Grimm
W.
of
Marsh-
field, Mass., has been named As¬
sistant
the
to
Manager of the
Department
of
Keystone
Custodian
three
Funds.
the
For
last
Grimm has been in
years
charge of the bond department in
the Boston office of the New York
had
Previously he
Corp.
worked
at
Brown
Brothers
Harriman & Co. and duPont,
Hom-
& Co.
sey
NOTICES
DIVIDEND
PEPPERELL
MANUFACTURING
DIVIDEND NOTICES
NOTICES
DIVIDEND
the
even
acknowledge growth industries do
diversify its economy.
of
Electrical
dealers, Distributors Group points
Hanseatic
mining
21.47%;
gas
"Capital
'
Electronics
Equipment Shares of Group Secu¬
rities, Inc.
r
Bond
investments
of
of Dec.
as
poor
constituted
equity-sharing
carry
values,
Number
stocks
85.62% of invested net assets, and
senior securities which are con¬
compared
(Canadian)
267,304
investments
on
cost
Total
1955.
of
fund
exceeded
(Canadian),
of
Investments of the fund during
the past year show that in pur¬
suance
-
price action of elec¬
tronics and electrical equipment
stocks during the past 18 months
suggests a buying opportunity for
long-term growth, according to
Distributors Group, Inc., sponsors
Diversified
was
share after
cents
open-end investment funds spon¬
sored and managed by Investors
The
these
on
Fitzsimmons,
Yhat in the coming recently organized of four mutual shareholders,
capital
continue
was
on
appear
year
Unes, 5.27%, and otaers, 8.81%.
Net income of the fund for 1956
on
D. G. Recommends
Group Canadian Fund
Crosses $100 Million lit Year
Mutual
43
COMPANY
1957.
January
Boston, January SS, 195T
NOTICES
DIVIDEND
DIVIDEND NOTICE
A regular quarterly
DREWKIS
COMPANY
BAKING
CONTINENTAL
has declared this day
The Board of Directors
of
$1,371/2
share
per
quarterly dividend
a
Preferred
the outstanding $1.50 dividend
on
Stock, payable April 1,1957, to
of business March 8, 1957.
..
stockholders of record at the close
T. e.
Common
Dividend No. 48
dividend, for the first quarter
.
on
the
108 of
No
Checks will be mailed by the Old Colony
Company of Boston, Dividend Disburs¬
ing Agent.
Cents
Trust
Forty-five
(hc
stared,
Frederick D. Strong, Secretary
payable
•«"?
ri95'".o ShoMer,
o.
April 1,
,957.
record
loeB,
^
President'
JEANNERET,
CORPORATION
regular quarterly
♦
share
Stock, payable April 1, 1957, t<>
of the year 1957, of 5Of per
outstanding Common
stock
holders of record of such
at
the close of business March
AMERICAN
American -^tattdafd
CAN COMPANY
PREFERRED DIVIDEND
COMMON DIVIDEND
PREFERRED
8, 1957.
be closed.
..
STOCK
dividend
of one and
was de¬
clared on the Preferred Stock of this Com¬
pany, payable April 1, 1957 to Stockholders
of record at the close of business March 14,
On
The stock transfer books will
not
DODGE
PHELPS
N. Y.
Brooklyn.
Secretary and Treasurer
has declared this day a
The Board of Directors
A
AD.vd.nd N .OT
South Bend, Indiana
r
.
1957.
Dividend No.
■
Limited U. S. A., Inc.
Orewrys
comply.
inc.
108
manufacturing
quarterly dividend of forty (40)
cents per share for the first quarter
of 1957 has been declared on the com¬
mon
stock, payable Mprch 11, 1957
to stockholders of record at the close
of business on February 27, 1957.
A
Preferred Dividend No. 73
dividend of Seventy(76V) per share has been dedared
payable February 15, 1957, to stockholders
of record at the dose of business February 8,
five Cents
WIUIAM fISHER
tr.eas:»ca
5. 1957 a quarterly
three-quarters per cent
February
1957.
books
Tran-ter
will
remain
clared.
payable
business
A
March
record
1,
at
1957
the
share
business
Common Stock
the
on
has
on
first-quarter dividend
Seventy-five
per
share
of
this
March
per
been
Cents
(754)
the capital stock
on
Corporation,
payable
8, 1957 to stockholders
of record February 21, 1957.
payable: Ma^ch
stockholders
a
of Directors has
of
to
of
close
February 21, 1957.
quarterly dividend of 35 cents
Board
declared
on
declared,
JOHN' R, HENRY, Secretary
of
stockholders
open.
Checks will be mailed.
Fzbmary 6, 1957
A quarterly dividend of $1.75 per share
on
the
Preferred Stock has been de¬
The
25„ 195|7f to
recordrat/tfiq close of
February 21, 1957.
of
M. W.
URQUHART,
Treasurer,
AMERICAN RADIATOR t STANDARO
SANITARY CORPORATION
Frank J. Berberich
j.
Common andPreferred
Dividend Notice
January 30, 1957
'
the
.
of Directors of the Company has
The Board
'
5ERBORRO
declared
rfo ALUS-CHALMERS
dividends, all payable on
stockholders of record at close 4
following quarterly
March
1,
1957/ to
of business,
-MFG. CO.
COMMON STOCK DIVIDEND
February 8, 1957;
A
Per Share
Security
Preferred Stock, 5.50% First
Preferred Series
Preferred Stock, 5.85% Series
Preferred Stock, 5.00% Series
Preferred Stock, 4.75% Convertible Series
Preferred Stock, 4.50% Convertible Series
CommonScock
.....
...
Common Dividend
No. 149
$1.3712
$1.46J4
A dividend of
31.00 per
$1.25
$1.18%
$1.12! i
$0.35
share
the
common
on
stock of this
has been
March
t
15.. 1957.
to
close
EASTERN
©
3HREVEPORT.
LOUISIANA
A
^Secretary
1,
of business
March
1957.
C.
common
stock, $ 0
pany
< n
February 7, 1957
par
value, of this Com¬
has been ueclared payable March ;}0.
1957 to shareholders of record at the close of
business March
1, 1957.
The Board of Directors of Sea¬
4.08% PREFERRED
DIVIDEND
No. 11
regular quarterly dividend of one dollar and
two cents ($1.02)
per share on the 4.08%
Cumulative
$101) par
declared,
holders
Convertible
Preferred
block,
value, of this Cotnpany has been
payable March 5. 1957 to share¬
of
record
at
the
dose
of
business
February 21, 1957.
will
not
W
E.
regular quarterly dividend of 25
cents
a
share
on
Common Stock,
holders of record March 21, 1957.
PREFERRED STOCK
DIVIDEND
The directors also declared regu¬
lar quarterly dividends of $1.18% on
the $4.75 Sinking Fund Preferred
Stock and $1.25 on the $5.00 Sink¬
be dosed.
ing Fund Preferred Stock, both pay¬
able April 10,1957 to stockholders
Hawkinson.
of record March
Checks will be mailed.
Vice President and Secretary
February 8,1957
board Finance Company declared
a
payable April 10, 1957 to stock¬
A
Vice President and Secretary
J
8Mb Consecvfive Quarterly Payment
the issued and outstanding
share
Transfer books
Allan Fee,
No. 131
regular quarterly dividend of fifty rente
(50c; per
Corporation
declared payable
stockholders of record at
CP"
DIVIDENO
COMMON
Amount
TEXAS
February 6, 1957
/
Secretary
21,1957.
A. E. WEIDMAN
January 24, 1957
Treasurer
The Commercial and Financial Chronicle
(316)
SC 44
.
.
Thursday, February 14, 1957
.
ing
BUSINESS BUZZ
tenth-hearted
The
on
A
Behind-the-Seen® Interpretation*
from the Nation's
•
g]
the
must
If they
give
are
going to
redouble
Eisen¬
hower's bid, there may
be such
and
,
inflation that there will not be,
in
a
manner
of ..speaking,
a
/II#
SXlllX
Capital
budget
new
them pause.
•
double
-yj
toward
welfare state.
JL IfU/
country left in which they
compete
with
"modern
can
Repub¬
licanism" for office.
WASHINGTON, D. C.—Deni¬
of this
capital city are
watching with baited breath the
progress of Washington's latest
case
of Second Term Egotitus.
This is a rare ailment. Of all the
zens
bipeds who inhabit the Earth,
only Presidents of the United
States
ond
who
elected
are
office
of
terms
to
sec¬
large
by
majorities are afflicted. It is not
a physical
illness of any kind.
It operates only to inflate the
fegos of its victims, and to de¬
stroy self-critical judgment.
established
plainly
.
thinks
victim
i
the
when
large electoral
a
areas
ture
have
majority and his own ompiscience are one and the same
thing. While the occurrence of
the disease is necessarily so rare
and may or may not
"Fiscal Control"
the
insisted
various
that
Government
WAS exercising
"fiscal control"
and
that
labor
and
business
should likewise do their part, A
solid
conviction of self-right¬
is
signs
in his Economic
the Federal Reserve should con¬
incurable.
tinue
However, the disease does not
destroy the physical health of
the victim.
It just works to
bank
hence
his popularity and
excises
his
of
most
ego.
This operation is performed in
the end by the victim himself.
Washington's most recent case
was
that which hit Harry Tru¬
the poor underdog until he
man,
fiscal
if
control"
does
as
he
not
be
the
temptation
raising
by
profits
United
"the
its
fatten
to
then
prices,
States"
will
crack
fooled most everybody and won
down with price and wage con¬
handsomely in 1948. From that
time as far as Harry was con-
trols, the President said.
anything
knew
oerned, nobody
else from
nothing but Harry.
Eventually the gentleman from
Missouri
went
back
to Independence, and has been
trying to build
dejectedly
his
up
ever
ego
industry should sim--
ply turn off
spigot and turn
on another,, it is so very simple,
and
get that
500,000
barrels
daily to western Europe that
this
one
needs
area
sustain
to
its
economy.
symptoms:v,
(1)
The
was
devoted exclu¬
the
conquered.
the
ever,
hower
this
to
gods
in
the
critical
Plainly,
put
Mr.
White
how¬
Eisen¬
House
juncture,
in
at
order
the world.
save
final
A
(5)
address.
Inaugural
This address
sively
to
pledging
without
seeming limit the resources of
all the taxpayers for the job of
promoting a just world peace
based on moral
law.
Nobody
much has as yet codified world
moral law or cited a peace that
was "just" except in the eyes of
the victor as he imposed it on
,
Eisenhower
also
pledged
without
stint, the resources of
the 'taxpayers to help improve
the standards of living of peo¬
ples everywhere, no matter how
far distant they may live from
the United States.
The Budget
(2)
Then
came
the
decision of the President to
make
the Republican
other
party
The
party.
sufficient
President
Paul
election
and
his
in
conferences
both
to
as
has
recent
Robert
J.
"Collier's"
in
Donovan
in
<s
,
,
Just below the surface, recent
Presidential stands are full of
tremendous promise for
George Humphrey, his
Secretary of the Treasury, to
say that Congress should cut the
budget, so long as*Mr. Hum¬
phrey did not express an idea,
he
and
did
a
not,
where
some
matter of faet Mr, Eisen¬
hower justified the large
expen¬
ditures
as
which
and
the
reflecting
things
"people demanded"
deserved.
As
has
been
The President's policy of
committing BOTH the
the
and
(including his party)
Government
of
States
to
new
a
the
and
broad program without advance
more
forcefully since January of this
year than ever before. And it is
causing
of
the
United States. His demands
for
sia
her
of
out
interest
in
It is another to
back
own
yard.
(2) Price Control. The initial
reaction to the President's spon¬
taneous
press
conference out¬
"the
that
burst
with
the
in
leaders
advance.
States"
United
Secretary
day, it
merce
the
next
that
the
Congress, after
have played this
past for political
the
profit, is to lay off. They believe
that
the
country
would
not
stand for price controls (wage
seldom
much)
the
affected
short
of
dent
On
consulted
other
is
hand,
if Eisen¬
self-righteous
may
it.
press
this
on
There is
outside possibility that if he
an
some
fun. What fun, one cannot
until
might be
to
the
time
comes.
considered
empower
popularity.
cuse
to
use
to
It
might
this
issue
turn
profitable
the Administration
to control prices and
fun
It
not
was
seen
around
be
to
equal
an
a
ex¬
more
conservative side.
or
added.
new
closely with his
because
away,
at the
the
he
was
local theatre. This is
here
White
a
a
new
new
House,
wise¬
occupant
and
he
The
This
President
than
first example, of
was
Sunday
papers.
in
advance.
the most
subscription
sooner
Democrats
later
or
the
must
agonizingly
re-appraise their political mer¬
chandise.
Democrats
h
o w e r
made
basic
a
as¬
early
in the EisenAdministration.
They
looked at
the
President's many
for
welfare
recommendations
N.
42nd
upon
the
the business
President
and
just decided Eisenhower really
couldn't
So
mean
the
enhower
it.
proposed
spending,
when
a
issues
tials,
just doubled and
doubled it
a
few
times, and
of
cused the Administration of be-
the
President
the
without
Congress.
Excess
first
decided
Profits
consulting
speculations,
on
poten¬
etc.
—
Included with 5-week trial sub¬
&
to
Mining
Letter
for
&
Metal
$1.00—Spear
Staff, Inc., Dept. M-15, Bab-
son
Park, Mass.
Manual of Sugar Companies,
&
Co.,
33rd,
120 Wall
Street, New York 5, N. Y.—$3,
TRADING MARKETS
Campbell Co. Com.
Fashion Park
Indian Head Mills
United States Envelope
Morgan Engineering
National Co.
Carl Marks
irritating arrogation of
continue
risk
reporting
interesting
Botany Mills
Saturday
been
17,
re¬
ac¬
course,
has
with
Eis¬
dollar
122
York
North—Mining &
Edition—Farr
Democrats
Company,
New
Metal Stock Letter
Stock
around
&
St.,
Fortunes in the
scription
men
and
"Business
to
v
programs and his modest initial
They looked
prices —L
Y.
appropriation requests for
same.
24th
—
Timing"—$10—An¬
thony Gaubis
that
Prices
thfee months trial
East
FOREIGN SECURITIES
SO BROAD
istration
Tax
included with
is
Leaders of
This
Stock
appraisal of the outlook
Investment
fed to the press by the
on a
of
for business and stock
ever
neither party had been consult¬
ed
annual
A. S.
State Department
for
Forecast
Another thing which the
President's new vigor suggests
(3)
the "Eisenhower Doctrine."
was
is
Eisenhower."
destroy its
as
not
family
although
not
with Congress. Sherman Adams
sumption
the
anniversary dinner
King Edward Hotel.'
at the
official
war
a
economy.
clear
This is something
of
in
parties
issue, he
Bond
25th
During his first term, the Presi¬
happening.
Sentiment
unions
ation
(Toronto, .Canada)
Traders* Associ¬
1957
Toronto
close advisers.
from
farther
be
made
had
ment either with his Cabinet
crack. "There is
controls
March 8,
cleared the controls pronounce¬
suggesting
could
Weeks
became
President
nothing
in
great
Security Dealers As¬
anniversary din¬
31st
limb against controls.
■ '
From the yelps which Com¬
that
issue
The
majority of the Republicans in
Congress are way out on the
would impose direct controls, is
both
Congressional
s
before.
to
President
World's
Western
h i
irritation
real
more
recipients of government bene¬
the
It is
tell
(1)
policy since early in his Admin¬
and
in public.
even
thing to ACT to protect the
one
revo¬
l>ointed out, the only
demanding
people have been prospective
fits
Doctrine"
"Eisenhower
than
graver
about the
in pri¬
skepticism expressed
vate
President
reception),
at the Biltmore Hotel.
ner
sounding off for controls,
again had not
the
consulted
and
(New York City)
.
much
also
is
There
able.
money could be saved.
As
consulting them in advance, or
—
presses it Democrats would have
consultation has been used
Mr. Eisenhower
tolerantly al¬
without
himself
committed
he
lutionary change in the whole
political line-up in this capital.
These changes have not jelled,
but change seems to be inescap¬
unless
lowed
repudiating the President on
-major foreign policy to which
hower
a
United
boom
his
<«
$78 billion in the ensuing fiscal
year with an enormous deficit
inflationary
Treasury.
alternative
with the
of
that
his pre¬
.......
Congress
the
said
"Saturday Evening Post" piece
several weeks ago, hit right on
the target what the President
is thinking.
tors into account, this portends
bails out the
the
press
suggest
Hoffman in
article
first
a
or
rank and file who constitute the
budget.
of $77 to
leaders
In
Members of Congress thus are
re¬
party re¬
gardless of the wishes of either
the
Taking all the background fac¬
budgetary expenditure
the
is
symptom
>!<
Mr.
Feel Committed
formally resolve in advance in
Congress to fight to keep Rus¬
Remake Party
1
New York
sociation
a
Mid-
(to be preceded
luncheon
a
March 8, 1957
Avoids Cabinet Consultation
Middle East oil.
jsince.
The
Stratford Hotel
"No, no, Mr. Corncob — I said your STOCKS
need changing!"
confronted
Association
annual
Winter Dinner at the Bellevue-
going along..
oil
The
annual
(Philadelphia, Pa.)
Philadelphia
by
reasonable in its wage demands
business does not forego
of
%
manufacturing
labor
Club
Investment Traders
Furthermore, since he is "ex¬
averred,
Wis.)
(Milwaukee,
Bond
March 1, 1957
sufficiently to stop
ercising
if
1957
21,
dinner at the Wisconsin Club.
that he does not think
avoid
An¬
Sheraton-
at
Blackstone Hotel.
Feb.
price-cost inflation because that
bears
down
too
harshly
on
"small business" and housing.
and
(Chicago, 111.)
Meeting
Message
best available word is that it is
be destroys
nual
Milwaukee
credit
Field
Bond Club of Chicago 46th
Thus Mr. Eisenhower made it
of the victim until such time as
Investment
Feb. 14, 1957
in his way.
(p. 44)
judgment
In
Second Term
of
plain
the
EVENTS
other
the
of
one
COMING
,
Egotitus.
(4)
The
victim of Second
Term Egotitus develops an emo¬
tional
impatience
with
those
who disagree with him or stand
to
views.]
his
Congress
to
Federal
eousness
coincide with
own
throughout
messages
the
"Chronicle's"
Presi¬
the
Nevertheless,
(3)
dent
thentic medical information, the
constantly
[This column is intended to re¬
flect the "behind the scene" inter¬
pretation from the nation's Capital
and
insistent
been
that there is an absence of au¬
warp
:
expendi¬
Federal
of
continuous.
tell-tale
'
It is
diagnosis is simple.
Its
new
TEL:
t
•
&
Co Inc.
SPECIALISTS
NEW YORK 4, N. Y.
Riverside Cement
Sightmaster Corp.
LERNER & CO.
Investment
HANOVER 2 0050
V
10 Post Office
Securities
Square, Boston 9, Mass.
Telephone
HUBbard 2-1990
Teletype
BS 69
Volume 185
Number 5612
.
.
,
The Commercial and Financial Chronicle
*
PICTORIAL
MEMBERS OF
THE BOSTON SECURITIES TRADERS
ASSOCIATION
At The Hotel Bradford
33rd ANNUAL
(F
DINNER
February 8, 1957
President
Vice-President
Recording
Secretary
Treasurer
Corresponding
Secretary
Leo F. Newman
American Securities
Corporation
Walter T.Swift
Kidder, Peabody &
Co.
Frederick V,
Wallace D. Dexter-
McVey
Childs, Jeffries &
Thorndike, Inc.
Stone
vL
J
&
Webster
Securities Corp.
Herbert L. Ferrari
Hornblower & Weeks
GOVERNORS
Wilfred 6. Conary
C.
H
Walker &
Providence.
R.
Co.
I.
Albert Crosby
F. S. Moseley
& Co.
Warren Donovan
Dayton Haigney &
Co.
Inc.
Allan C. Leland
Coffin &
Burr,
Incorporated
.Gilbert M.Lothrop
W. E. Hutton & Co.
Herbert W. Young
Brown
Brothers
Harriman & Co.
2
PICTORIAL
The Commercial and Financial Chronicle
.
.
.
Thursday, February 14, 1957
'(tnuucan §«nni(in'
Cnpouiun
We maintain markets
at
NET PRICES in:
PUBLIC UTILITY STOCKS
and
BANK STOCKS
Joseph Smith, Newburger A Co., Philadelphia; John M. Hudson, Thayer, Baker A Co., Philadelphia;
Bill Burke, May A Gannon, Inc., Boston; Ed Knob, Drexel A Co., Philadelphia; Sam
Kennedy,
Yarnall, Biddle A Co., Philadelphia
Ctm&ucan
(^QAjiaxxdlon
NEW YORK
BOSTON
CHICAGO
HARTFORD
PHILADELPHIA
I. S. M05ELEY & CO.
ESTABLISHED
1879
MEMBERS
New York Stock Exchange
American Stock Exchange
Boston Stock
Midwest Stock Exchange
Exchange
Underwriters and Distributors
CORPORATE
AND
James
York
B.
Maguire, J. B. Maguire A Co., Inc., Boston; William Kumm, Coggechall A Hicks, New
Larry Lyons, Allen A Company, New York City; Charles E. Callow, Frederick C. Adams
A Co., Boston;
Robert L. Polleys, Jasepthal A Co., Boston
City;
of
MUNICIPAL
SECURITIES
COMMERCIAL
BOSTON
.
NEW YORK
•
CHICAGO
PHILADELPHIA
PAPER
INDIANAPOLIS
•
•
WORCESTER
SPRINGFIELD
•
Melvin O. Hall,
Investment Bonds and Stocks
Connecticut State Securities Director; Nat Krumholz, Siege/ A Co., New York; Leo F.
American Securities Corporation, Boston; Gene Hussey, First Boston Corporation, Boston
Newman,
Securities of the United States Government
and its Instrumentalities
State, Municipal, Revenue and Housing Securities
Hal Murphy, Commercial A Financial Chronicle, New York; Frank Harrington, H. D. Knox A Co.,
Inc.,
Boston; George Stanley, Schirmer, Atherton A Co., Boston; Charles R. Clausen, Hoit, Rose A Company,
New York;
Thomas C. Brown, Charles King A Co., New York
Bonds, Preferred and Common Stocks of Industrial,
Public Utility and Railroad Corporations
' 1
Bank Stocks
Casualty, Fire and Life Insurance Company Stocks
Bankers'
Acceptances
Securities of the International Bank for
Reconstruction and
Canadian Bonds
Underwriter
New York
Philadelphia
•
Development
Foreign Dollar Bonds
Distributor
•
Boston
Pittsburgh
Cleveland
•
Dealer
Chicago
San Francisco
Carroll
Boston;
Williams,
Harold
Chas.
A.
Laird, Bissell A Meeds, New York; Barney
White, Director of Securities Division, State
Day
A
Co., Inc.,
Boston;
Frank
of
Daley,
•
Bernard, Schirmer,
of Massachusetts;
Assistant
Massachusetts
Director
of
Atherton A Co.,
Wilfred N. Day,
Securities Division
.
—
Volume 185
Number 5612
.
.
.
3
PICTORIAL
The Commercial and Financial Chronicle
Kidder, Peabody & Co.
Founded
1865
in
f
Mpmbers New York, Boston, Midwest and
American Stock
Exchanges
>
Trading markets in
New
Rod
England Bank, Utility and Industrial Stocks
Federal Street, Boston
75
Darling, du Pont, Homsey A Company, Boston; Russ Potter, Arthur W. Wood Company, Boston;
John Tirrell, Star Printing Co., Boston;
Dick Corbin, Blyth & Co., Inc., Boston
Teletype: BS 338
Telephone: Liberty 2-6200
CHICAGO
NEW YORK
PHILADELPHIA
New
Lowell
Springfield
Victor
Dugal, J. B. Maguire A Co., Inc., Boston; Herbert E. Hurley, Hornblower &
Martin J. Carew, Hornblower & Weeks, Boston; Burt Whitcomb, Harriman
& Co., Incorporated, Boston
England Branches:
New Bedford
•
FRANCISCO
SAN
Newport
•
Taunton
•
Providence
•
Worcester
•
Weeks, Boston;
Ripley
White, Weld & Co.
40 Wall Street,
New York 5f N. Y.
BOSTON
CHICAGO
PHILADELPHIA
Members New York Stock Exchange
and other
and
LOS ANGELES
principal Stock
SAN FRANCISCO
Commodity Exchanges
r
NEW HAVEN
'
•
HAGERSTOWN
%
MINNEAPOLIS
WINCHESTER
FOREIGN OFFICES
LONDON
Larry Ccnnell, Wellington Fund, Boston; James
Saunders, Dominion Securities Corporation, New
•
ZURICH
•
CARACAS
•
PROVIDENCE
HONG KONG
McGivney, Hornblower & Weeks, New York; Walter
York; Lou Walker, National Quotation Bureau, N. Y.
UTILITIES
PUBLIC
PRIMARY MARKETS
INDUSTRIALS
WITH COMPLETE
BANK AND INSURANCE
TRADING FACILITIES
MUNICIPALS
llf
Clive
Fazioli,
H'rsch
&
White.
Co.,
Weld
New
A
York;
Co., Boston; Bud Lewis, Weeden & Co.,
Frank Breen, Schirmer, Atherton & Co.,
White, Weld & Co., New York
Boston; Robert De Fine,
Boston; Peter Molloy,
BONDS
PREFERRED
•
STOCKS
•
STOCKS
COMMON
Blyth & Co., Inc.
NEW YORK
BOSTON
•
•
•
•
INDIANAPOLIS
SACRAMENTO
Jim
Toronto; Bert Pike, Troster, Singer & Co., New York; Lewis
Co., Boston; Joe Buonomo, F. L. Putnam A Company, Inc., Boston;
Traviss, S. J. Brooks A Company,
McDowell,
Chas.
A,
Day A
CHICAGO
SAN.FRANCISCO
PHILADELPHIA
•
•
DETROIT
PASADENA
•
LOS ANGELES • SEATTLE •
PITTSBURGH
MINNEAPOLIS
•
•
SAN DIEGO
•
•
•
CLEVELAND
SPOKANE
SAN JOSE
•
•
OAKLAND
FRESNO
PORTLAND
LOUISVILLE
•
♦
•
EUREKA
PALO ALTO
•
4
Ed
PICTORIAL
The Commercial and Financial Chronicle
.
Thursday, February 14, 1957
..
Creamer, Schirmer, Atherton A Co., Boston; Bill Bozsnyak, White, Weld A Co.,
York; John Marshall, White, Weld A Co., New York; Ed McCormack,
White, Weld A Co., New York
New
Ray Bond, J. B.
Maguire A Co., Inc., Boston; George
W. Scranton A Co., New Haven
H.
Harvey
Angelos, Cherries
Keller,
Keller
Keller
Norton
Brothers
and Herman Keller, all
Co., Inc., Boston
of
Securities
Distribution
in NEW ENGLAND
for
than 100 YEARS
more
Estabrook & Co.
15 STATE
Boston
STREET, BOSTON
Telephone LAfayette 3-2400
Boston
New York
Hartford
Teletype BS-288
Poughkeepsie
Providence
Members New York and Boston Stock
Springfield
Joseph M. Rinaldi, Lerner A Co., Boston; Herbert L.
Ferrari, Hornblower A Weeks, Boston; Alfred Zuccaro,
First Boston Corporation, Boston
Lowell
Warren, Dominion Securities Corporation, Boston;
Johnson, G. A. Saxton A Co., Inc., New York;
Torpie, J. C. Bradford A Co., New York
Walter
Bob
Exchanges
UNDERWRITERS, BROKERS and DEALERS
distributing
CORPORATE and MUNICIPAL SECURITIES
since 1886
W. E. HUTTON & CO.
Members New York Stock
and other
Exchange
leading exchanges
NEW YORK
CINCINNATI
Philadelphia
Burlington, Vt.
Baltimore
Columbus, 0.
Hartford, Conn.
Boston
Dayton, O.
Lewiston, Me.
Biddeford, Me.
W.
Jim
Moynihan, J. B. Maguire A Co., Inc., Boston; L--«
Walker, National Quotation Bureau, New York; Arthur E.
Engdahl, Goldman, Sachs A Co., Boston
F.
May,
American
May
A
Securities
Chas.
A.
Gannon, Inc., Boston;
Joe Slifer,
Corporation, Boston; Leon E. Day,
Day A Co., Inc., Boston
Easton, Pa.
Lexington, Ky.
Portland, Me.
Townsend, Dabney
and Tyson
ESTABLISHED 1887
Members
New
Associate
30
York
and
Members
STATE
Boston
American
Stock
Stock
RHODE ISLAND SECURITIES
Exchanges
Exchange
STREET, BOSTON 5
Our Trading Department Invites Your
On All Rhode Island Securities
Dealers in
New
Inquiries
England
Open-end Phone to Boston
Corporate and Municipal
Securities
—
LAfayette 3-0610 and 0611
G. H. WALKER & CO.
Established
New York Telephone CAnal 6-1540
new
york
a
american
15
Teletype BS-346 for Trading Dept.
—
1900
members
BS-430 for Municipal Dept.
WESTMINSTER
Telephone
union
midwest
stock
|
stock
exchange
ST.
exchanges
(assoc.)
PROVIDENCE 3.
1-4000
Bell
Teletype
'
-
direct
Branches:
Portland, Me.
Lewiston, Me.
Greenfield, Mass.
Augusta, Me.
Lawrence, Mass.
Bangor, Me.
Keene, N. H.
new
Fitchburg, Mass.
Manchester, N. H.
George W. Cunningham, George W. Cun¬
ningham A Co., Westfield, N. J.; Jim
Kelly, Shearson, Hammill A Co., Spring¬
field,
Mass.
york,
st
pawtucket
private
louis,
and.
wires
to
bridgeport,
white
plains
hartford,
offices
PR
R. I.
43
Number 5612
185
Volume
.
..
PICTOB1AX,
The Commercial and Financial Chronicle
Coffin & Burr
Incorporated
Founded 1891
Trading Markets in
New England Securities
BOSTON
Jim
Philadelphia; Charles Walling ford, H. M. Byllesby
Incorporated, Philadelphia; Frank Harrington, H. D. Knox & Co., Inc., Boston;
Mundy, Suplee,
&
Company,
Yeatman, Mosley Co., Inc.,
Bob
Allison, Coffin &
LvlFM >tsh£
BANGOR
.
Boston Stock Exchange
New York Stock Exchange
Burr, Incorporated, Boston
•
HARTFORD
PORTLAND
NEW YORK
American Stock Exchange
Midwest Stock Exchange
(Associate)
PRIMARY MARKETS
UTILITY and INDUSTRIAL STOCKS
NEW ENGLAND SECURITIES
Ted 'White,
Bob
Irgalls,
Louis
William H. Coburn & Co., Boston; Ray Murray, Tucker,
Tucker, Anthony & R. L. Day, Boston; Ed Williams,
Zucchelli, /. B. Maguire & Co., Inc., Boston; Robert
Providence, R. I.
Anthony £ R. L. Day, Boston;
Hooper-Kimball, Inc., Boston;
CORRESPONDENT
BOSTON
v
B. Sorterup, Brown, Lisle & Marshall,
A.
KIDDER &
M.
CO., NEW YORK
for
BANK and INSURANCE STOCKS
J. B. MAGUIRE & CO.,
31
INC.
Boston 9, Massachusetts
Milk Street,
Open-end Telephone Wire to New York
New
York-—CAnal 6-1613
Bell System Teletype—BS 142
Boston~HUbbard 2-6600
Providence, R. I.-—Enterprise 2904
Nesbitt, Thomson and Company, Inc., Boston; Fremont
& Co., New York; Lloyd Clearihue, A. E. Ames & Co., Incorporated,
Hayden, Stone & Co., New York
Dick Chamberlin,
"
Portland, Maine—Enterprise 2904
Hartford, Conn.—Enterprise 6800
W. Robson, F. B. Ashplant
Boston; Don Williams,
•
.
Since 1929
Sumner Wolley,
Boston;
Coffin & Burr, Incorporated, Boston; Vincent Ryan, New
Wilfred Conary, G. H. Walker & Co., Providence, R.
Clayton Securities Corporation, Boston
Offering fast and accurate
stocks
to
on
a
Specializing in New England Securities
York Hanseatic Corporation,
I.; Bert Woglom,
General Market Stocks and Bonds
service on all Canadian
prices
MAY& fiAXXON-
commission basis or at net U.S.
banks, brokers and dealers in
the United States.
Open-End Telephone, New York to
Toronto
■VA'm
•
Walker 5-0422
Enterprise Telephone to
STREET, BOSTON 10, MASS.
140 FEDERAL
IS
Wz
William F. May
*<
William J. Burke, Jr.
Joseph Gannon
-,
*/,
Treasurer
Vice-President
President
Buffalo, Cleveland and Detroit
NEW
BOSTON
Enterprise 6772
HU
JAMES A.
Mgr.-U.
BROOKS & COMPANY
MEMBERS
THE
TORONTO
•
STOCK EXCHANGE
185 BAY
STREET
TORONTO
1
YORK
6-2610
TRAVISS
S. Dept.
HARTFORD
PORTLAND
PROVIDENCE
Enterprise 9830
Enterprise 9830
Enterprise 9830
Bell
S. J.
CA
2-8360
Kendrick,
Securities & Exchange
Commission, Boston; Jerry Ingalls, Coffin
Phil
&
Burr,
Incorporated,
Boston
System Teletype
BS 568-9
:'
p-
6
PICTORIAL
The Commercial and Financial Chronicle
.
..
Thursday, February 14, 1957
I
Automobile
Banking Corporation
$1.50 Preferred & Class A Common
Report
on
request
Hodgdon
10 State
Co.
&
Street, Boston 9, Mass.
Telephone CApitol 7-4235
Bell
System Teletype BS 849
John
Chapman, Chapman & Co.. Inc., Boston; Bill MacDonald, Chapman &
Co., Inc., Melrose, Mass.-;
Warren Donovan, Dayton
Haigney & Co., Inc., Boston; Speed Hughes, Clayton Securities
Corporation, Bostcn
UNDERWRITERS and DISTRIBUTORS
Industrial, Public Utility and
Railroad Securities
Municipal Bonds
Bank and Insurance Stocks
Unlisted Securities
Laird, Bissell & Meeds
A. A.
Geller, Allen & Company, New York City; John D'Arcy, F. L. Putnam &
Company. Inc.. Boston;
Philip Kenney, Hayden, Stone «£ Co., Boston; Harry Frank, Frank Investors
Corp., New Ycrk
MEMBERS NEW YORK AND AMERICAN STOCK
EXCHANGES
120
BROADWAY, NEW YORK 5, N. Y.
Telephone BArclay 7-3500
DU
PONT
BUILDING
Bell Teletype NY 1-124849
PHILADELPHIA NATIONAL BANK BLDG
WILMINGTON, DEL.
44
WHITNEY
NEW
HAVEN,
PHILADELPHIA, PA.
*
AVE.
ZURICH
CONN.
160
SWITZERLAND
W.
BROADWAY
SALEM, N. J.
Dealers and Brokers in
General Market Issues
Irving C. LeBeau, May & Gannon, Inc., Boston; Crandon Leahy, National
Quotation Bureau, Boston;
Fred
Carter, De Haven & Townsend, Crouter & Bodine, Philadelphia; Jim
Concagh,
Nesbitt, Thomson & Company, Inc., New York
Specializing in
New England Securities
Carr & Thompson, Inc.
31
M|1LK STREET
BOSTON 9, MASS.
BOSTON
NEW YORK
HUbbard 2-6442
WHitehall 3-7600
Bell System
Teletype BS 328
Charles A.
York;
190 4 r * 53 YEARS OF SERVICE *
Chas. A. Day
&
Bodie, Stein Bros. & Boyce, Baltimore; John Fitzgerald, W. C. Pitfield & Co.,
Inc., New
Kumm, Coggeshall & Hicks, New York City; Arthur Murphy, A'. C. Allyn and
Company, Incorporated, Boston
Bill
New England Markets
Co.
Underwriters and Distributors
-
Incorporated
-
r
-
•
Listed and Unlisted Bonds and Stocks
t
particularly of
Secondary Distributions
Support
•
Banks and
New England Corporations
£
•
•
Insurance
Industrials
—
Stocks
Utilities
Inquiries invited from Dealers
and Financial Institutions
Maintaining
Inactive
Securities
Retail Department
with Distribution in New
England
a
f. L. PUTNAM & COMPANY. INC.
Member
77
WASHINGTON AT COURT STREET
Member Boston Stock
i—.
jj.
"Exchange
Boston
Stock
Exchange
Franklin Street, Boston 10,
Mass.
Telephone Liberty 2-2340
525 Hospital Trust
Bid?., Providence, R. I.
"Duke"
Hunter,
New
A1
Number 5612
185
Volume
York;
.
.
.
The Commercial and
Wellington Hunter Associates,
Neil Brady, Blyth A Co., Inc.,
Dykes, du Pont, Homsey
Bridgeport, Conn.; Carl K.
Financial Chronicle
Jersey City, N. J.; Reg.- Knapp, Ira Haupt A
Boston; Herb Smith, Blyth'A Co., Inc., Boston
& Company, Boston;
Ross, Carl K. Ross &
Paul D. Sheeline
&
Herb
Co.,
A. Maurits Johnson, G. H. Walker &
Co., Inc., Portland, Maine; James Lynch,
Co., Boston
Boston;
Bradley A Co., Inc., New Haven;
Upham & Co., Boston; Joe
Bob Blair, Harris,
James E. Moynihan, J. B. Maguire A Co.,
Titolo, Harris, Upham & Co., New York
Stone
A
Bill
Co., Inc., New
McGovern,
York; Joe Krasowich, Gregory
Gregory
& Sons, New
York
A Sons, New York;
W. E. Hutton A Co., Boston;
McBride, Midland Securities
Howard Kadelburg, Francis I. du Pont & Co., New York; Jack Putnam,
Frank Murray, Laird, Bissell A Meeds, New Haven; Mickey
Corpn., Limited, Toronto
Co.,
Scattergood, Boenning A Co., Philadelphia; Wilfred B. Perham, Townsend,
Boston; Walter Nester, M. A. Schapiro A Co., New York
Harold
Guy R. Hogarth, E. M.
Kugel,
Gesbell,
Inc.,
City
Dabney A Tyson,
Established
1926
H.
OPPORTUNITIES IN CANADA
Our facilities can
in
the industrial
investors
those interested
and of benefit to
suitable investments through which to
participate in
&
be of valuable assistance to
development of Canada
selecting
in
KNOX
CO., Inc.
MEMBERS
New
.
York Security Dealers Ass'n
Canada's assured growth.
DEALERS AND
Nesbitt, Thomson and
BROKERS IN
Company
Limited
Members of The Investment
Head Office:
355 St James Street
Branches in the
UNLISTED
Dealers' Association of Canada
W., Montreal
SECURITIES
principal Cities of Canada
•
Nesbitt, Thomson and
25
Broad Street, New
Company, Inc.
York 4, N. Y.
Telephone HAnover 2-8875
Teletype NY
140 Federal Street, Boston 10, Mass.
1-4358
Your Doorway to trading markets in
11
New England
Securities
Telephone DIgby 4-1388
Bell
!
31
MILK STREET,
BOSTON 9, MASS.
System Teletype NY 1-86
27 State Street
Telephone HAncock 6-8200
Direct
New
York,
Boston,
Kitchener, London
wire connections
Montreal,
Broadway
NEW YORK 4
BOSTON 9
between
Toronto, Ottawa,
(Ont.), Winnipeg, Calgary
Hamilton,
Members New York
and Boston Stock Exchanges
Telephone CApitol 7-8950
Bell System
and Vancouver
Springfield
*
Fitchburg
•
Worcester
Direct
Teletype BS 169
phone between offices
8
PICTORIAL
The Commercial and Financial Chronicle
...
Thursday, February 14, 1957
TRAPIWO MARKETS
*
BOTANY
*
MILLS
INDIAN
W.
HEAD
L.
MILLS
MAXSON
MORGAN ENGINEERING
*
SIGHTMASTER
*
RIVERSIDE
*
CORP.
CEMENT
UNITED STATES ENVELOPE
NATIONAL
*
COMPANY, INC.
Review Available
John
LERNER & CO.
Investment
10 Post Office Square
Telephone: HUbbard
Maguire, May A Gannon, Inc., Boston; John
Ingham, Blyth A Co., Inc., Boston; Joseph Gannon,
May A Gannon, Inc., Boston; Herbert L.
Ferrari, Hornblower A Weeks, Boston
Securities
•
Boston 9, Massachusetts
2-1990
Teletype:
BS 69
MASSACHUSETTS SECURITIES
Trading Markets
*
Retail Distribution
John
KELLER BROTHERS
o>
L
CO,, INC.
ZERO COURT STREET
BOSTON
TELEPHONE RICHMOND 2-2530
MASS.
9, MASS
TELETYPE BS 630
BANK STOCKS
Naumkeag Tr. Co.
Norfolk
Middlesex C'nty Nat'l Bk.
Springfield Nat'l Bk.
Third Nat'l Bk. & Tr. Co.
Union Tr. Co.
Maine
C. Mathis, Jr., Estabrook A
Co., Boston; Stanley Jackson. Estabrook A
Co., Boston; John
McDcnough, H. C. Wainwright & Co., Boston; Jim
McCormick, Jr., A. C. Allyn and Company,
Incorporated, Boston
New
C'nty Tr. Co.
Hampshire
Vermont
Bank Stocks
Lee
Ed
Paul D. Sheeline & Co.
31 MILK
Telephone HAncoclc
Hallett, Goldman, Sachs A Co., Boston;
Henry Tabb, Townsend, Dabney A Tyson, Boston;
Hines, Chace, Whiteside, West A Winslow,
Inc., Boston; Charles Smith, Moors A Cabot,
Boston;
Roger Bragdon, Goldman, Sachs A
Co., Boston
STREET, BOSTON 9, MASS.
6-0170
Teletype BS
CLAYTON
51
UNDERWRITERS
DISTRIBUTORS
SECURITIES
DEALERS
CORPORATION
PRIMARY
TRADINO
MEMBERS
MARKETS
MIDWEST STOCK EXCHANGE
Direct
79
MILK
BOSTON
STREET,
9,
Telephone to
New
York
WOrth 4-6820
MASS.
and to
HUbbard
James
2-6065
Grace
Teletype BS-30
Canadian
Securities
Inc.,
A
New York
John
and
Portland
Wellesley
Television & Radio
H. M. Byllesby &
Broadcasting Corp.
WGAW
WESX
Quincy
Gardner
Salem
—
Company, Incorporated, Philadelphia; Dan Quinn,
Schirmer, Atherton
H. Salisburi, Eastman
Dillon, Union Securities A Co., New
York;
Meyers, Gordon Graves A Co., Inc., New York
Co., Philadelphia
WJDA
Bought
McFarland, Stroud A
Co., Boston; William
Sold
—
Quoted
JACKSON & COMPANY, INC.
31 MILK ST.
BOSTON 9, MASS.
John
McCue, May A Gannon, Inc., Boston; David
May, May A Gannon, Inc., Boston; Walter
Eagan,
Harris, Upham A Co., Boston; Dick
Murray, May A Cannon, Inc., Boston
@FedFRASER