Full text of Commercial and Financial Chronicle : February 20, 1958, Vol. 187, No. 5718

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c

*

i \"E

H*

1

MICHIC

OF

ESTABLISHED IS39
JJERlOOICAL
y

JTDING ROOM

Re*. TJ. S. Pat. Office
IV

Number 5718

Volume 187

New York

7, N. Y., Thursday, February 20, 1958

Price 50

Cents

Copy

a

!

PITORIAL

Unwarranted Doubts

We See It

As

Chairman, Finance Committee
United States Steel

One of the measures

being urged by many as
of combatting the current recession is a

means

sharp reduction in Federal taxes.
course, no

Absence of

unanimity about what taxes should be

anteeing

of

the President's

paralysis similar to the 1930's.

executive

granted that almost any relief ffom the pres-"
ent burdens of taxation—provided it was sub¬
stantial enough—would do a great deal to reviye v
business and increase employment. Even so emi¬
nent an authority as Professor Arthur Burns,
Chairman

recommends, however, remedial
which

measures

development

destiny by adjusting
cies to

for consumers
economy," al¬
though he carefully refrains from saying that
reduction should be made

a

as

There
that

we

is

in this

if

reduction

when

and

to warrant

as

or

the great corporate institutions,

swings of postwar

developments.

the

can

that the "keen mind and

pin his faith for

for high stakes and

land

of the

one

soul

a breakthrough,
rewards"; and enumerates samples
of equities of interest to professional adviser.

courageous

.

in

equity investment policy for the present, and ad¬

forecasting without an understandable frame
"replete with charlatanry if not asininity." The author holds that it is on the specialties, not'

national attitudes and poli¬

our

-

termination
time

to

in

of

Preamble
I must say that I find discussions concerning the stock
market on the tedious: side, although the subject itself

the

from "

booms

history

of

our

is fascinating. It fascinates the public

It is about this possibility
I would like to discuss briefly, be¬

7,

vTi

circumstances were

ranted

about

doubts

as

the

anc^ the press, who are in turn at-

politicians, who in their own trade j
have a good sense of insight and '*
psychology, and any omen of the
thinking and feelings of men and the
mass seems significant to them. And "

situation;

unwarranted

are

presence

.

.

.

it

..

the

refer

business

the

to

broad

that has

events

repeatedly

and

R.

C.

regularly followed each of the
great wars in which the United
States has
engaged.
The story of
that sequence seems to be something

Tyson

this:

page

cago,

by Mr. Tyson before
Chicago, 111., Feb. 7, 1958.

Executive's

the

Club

of

baffling

finds

the

since | in

his engi¬
Armand

32

Continued
School

Chi¬

address
of

by Mr.

Business

on

Administration

Alumni

22

page

Association

on

Dean's

and investors in corporate

are

poten¬
38.

State, Municipal
and

j

*'•»

i

-

'

:

Municipal

Securities

j*.

1

V

r

ni5i)

>

*.

r i

p < r.

W

V UNDERWRITERS

;

"7/ "'/V'

and..

STATE

,

AND

:

of

BONDS

IIAnover 2-3700
INVESTMENT

COPIES OF OUR

''ATOMIC ENERGY
7

CHEMICAL

SECURITIES

,

Public Housing Agency

MUNICIPAL

DISTRIBUTORS

-

.

-

telepiioxe:

Erpf

Erpf at the New York University Graduate

in

Stale and

-

stock

exact, coherent, consistent, purpose¬
ful, and fit into a well organized
blueprint. By the time the industrialist has gotten his
affairs into a tidy pattern and most of his problems, in

afforded a complete picture of issues now registered with the SEC and
tial undertakings in our "Securities in Registration" Section, starting on page

DEALERS

„

Day Homecoming, New York City, Feb. 15, 1958.

SECURITIES NOW IN REGISTRATION—Underwriters, dealers
securities

instrument

a

neering and planning things must be

♦An
address

industrialist, who

monstrous

industrialist

market

all very well know, fearfully
In war-time a single objective
supersedes all other goals. It is to win the war. This
on

this

possibility of

The

War, as we
the economy.

Continued

in

clue for his own
projections and of course he has to
go there now and then for money.

of

sequence

the

fascinates

sees

What War Does to Our Economy
I

4

tracted and repelled.. It interests the

unwar-;

are

certainly be dispelled, lest
itself aggravate the
situation. •
-x

their

like

22

page

there

.

should

♦An

on

suspect

and such doubts

wrenches

constructed
overhauled
too high quite re-

Continued

I

cause

a

event. Some rates are

the

on

>

time

permit it. Our whole tax

U. S. Government,

REVIEW" ;

Bonds and Notes
'

.

r

V

•

1

•

'

BOND

ARE NOW AVAILABLE

DEPARTMENT

.

ON

CORN EXCHANGE
the FIRST NATIONAL CITY BANK

BANK
bond

department

Burnham and
MCM8ERS NEW

30 BROAD ST., N.Y.

15 BRQ AD
CA.LE:

Underwriter

•

YORK AND

STREET, NEW YORK 5,

N.Y.

•

014-1400

•

•*

*'

''

Dept.'Teletypes NY 1-708

Active

Net

Dealers,

Markets

Members New Ydrk Stock Exchange

120

V

;

J

Bond

Distributor

..

•

TELETYPE NV M2«

'

COSUrtNHAM

EXCHANGES

REQUEST

Harris, Upiiam & C2

OF new YORK

Company

AMERICAN STOCK

To
.

34

BROADWAY, NEW YORK 5
offices

from

coast

THE

Chase Manhattan
bank

to coast

Maintained

Banks and Brokers

\

'

-'•-Dealer "

T. L.Watson &Co.

SECURITIES

"

Members '

Commission

New York

California

CANADIAN

1832

ESTABLISHED

Orders Executed On

BONDS & STOCKS
All

:i

Stock Exchange

\
25 BROAD
.

<Southu>eAt COMPANY
DALLAS




T

i

*

'

STREET

NEW YORK 4, N.
1

:

.

"•

'.

;

BRIDGEPORT

.

•"

■

••

•

DIRECT

CANADIAN

Municipal Bond

DEPARTMENT '.

Teletype NY 1-2270
WIRES TO

•

PERTH AMBOY

MEMBERS NEW YORK STOCK

115 BROADWAY
NEW YORK

*

Department

Domdoox Securities

.

MONTREAL AND TORONTO

Goodbody &

Y.

\ Municipals

Canadian Exchanges

Stock Exchange
'

American

FIRST

4

Mr. Erpf concludes watchful waiting is the

of reference is

better

a

Republic.

system, incidentally, is conceived and
upon false premises, and should be
in any

it

country may be standing at

.

such

make

close to their higbs to those down two-thirds

vises thai

be

can

or

more.

wisest

economic
we

mounting conviction abroad

a

.

large popular ap-;
eal. Business men find the taxes they are obliged ::
to pay in this day and time very burdensome, and
consumers, whether or not they know it, must
shoulder a very heavy load of taxes paid in the
first place by others.: Income taxes, too, on all
but the lowest incomes are a dead weight for the
individual to carry, and their excessive progres-;
siveness bears; heavily upon business initiative
and willingness to undertake ventures. No one
in his right senses would for a moment oppose
tax

further

can

and

tax and labor

.

yet when it ought to be done.

always has

position of broad categories of industry ranging from
those at

historic turning points in the broad sweep of American
business affairs—such a turning point as has occurred

expressed much the
view, but did not believe the time had come

Tax reduction

Wall Street partner offers specific insight into current

The finance

Concludes

suit the characteristic broad

The President sometime ago
same

By ARMAND G. ERPF*

Partner, Carl M. Loeb, Rhoades & Co., New York
President, New York Capital Fund of Canada-, Ltd., Toronto

.

this time.

at

and

business

porary tax cut of $4 or $5 billion
and businesses would revivify the

hinder

to

stand.

now

destiny

our

Economic Advisors, feels "no doubt that a tem¬

such

said

are

they

as

of

masters

of

Council

,

headed into another nationwide

not

we; are

economic

for

former

Corporation

great speculative, low-margin stock market

a

and presence of sound home mortgaging financing are
two factors singled out
by Mr. Tyson as capable of guar¬

There is, of

by how much, but it appears to be taken ^

cut and

Equity Investment
Policy lor Today

77/7}/ By ROBERT C. TYSON*

Gkporatioti

Co.

EXCHANGE

40

Exchange Place, Now York 5, N.Y

/ 1 NORTH LA SALLE ST.
CHICAGO

iBank of America
Associac,v-

-

300 MONTGOMERY STREET

Teletype NY 1-702-3

WHitehall 4-8161

SAN FRANCISCO 20.

_

..'

CALIFORNIA

/,

The Commercial and Financial Chronicle

2

.

.

Thursday, February 20,
1953

.

(830)

For Banks, Brokers,

The

Dealers only

A continuous forum in which, each week, a different group

Try "HANSEATIC"
•

In the investment and

reasons

Large Trading Department

they to be regarded,

Research Depu

Private

Wire

American

System
when

the fast grow¬

ing photocopy
field

and,

un¬

like its

princi¬
pal
competi¬
tors, this busi-

Corporation
Established

1920

Member

Stock

for the bulk of

Exchange

120 Broadway, New York

r

WOrth 4-2300
;

the

5

PHILADELPHIA

ing

CHICAGO

•

Its

s.

Wires

to

over

the

last

years

Private

six

phenomenal,
H.

its profit mar¬

gins

it

Specialists in

of

Brown

in^the

is

dominant factors.

the

enviable position

obtaining the major part of its
from repeat business.
The

1957

39%,

high of

oV-m

0+

tL

earnings for

Since 1917

30 '

H".

fin.po

1 o

yeaV

ended Nov

Period

greased

marketing

been

a

1939, but

since

its period of rapid growth did not

New York Stock Exchange

the

120

Exchange

BROADWAY, NEW YORK 8

Trading Interest In
'

American Furniture
Bassett Furniture Industries

^transfer diffusion process of

other establishments

and

Life Insurance Co. of Va.
Commonwealth Natural Gas

STRADER and COMPANY, Inc.
-5-2527--

-

Private

Wire

York

1956^

onororto

on

an

average

35%.,

onnnol

annual increase

Volume

.

last

year

•

large.

Opportunities Unlimited

potential cusphotocopiers is still

*

The

IN JAPAN

were

.for

sales

company's

in

for

our

Monthly Stock

our

% of Total

Photocopy
Chemical

♦

picture of the Japanese
economy as a whole.

$3.4

28

7.8

64

paper

pected.

$100

Nomura Securities Co., Ltd.
Broadway, New Y'ork 6, N. Y.

Telephone: BOwling Green 9-0187
an

orders for

offer

or

solicitation

for

any particular securities

the

,

Almost

8

-

three-quarters

company's
paper

business

-

.

Charles

Pfizer

of

comes

and chemicals

the
from

in

used

&

----i—*---

assessing

Textbook Co.
Unlisted Trading Dept.

the

to

maintain

Members New York stock
Exchange

Exchange

(Associate)

65 BROADWAY, NEW YORK
6
BQwL Green 9-7060

Teletype NY 1-2746




>

■

one

chemistry; and

but

little

duction
in

six

all

and

-

Burns Bros. & Denton

its

facilities
S. and in

■

Dealers?-)::?t?C

pro¬

facilities

1950-1956,/it

in! four
11

states

foreign

Investment Securities

in :

coun¬

Canadidn arid Domestic

tries—Argentina; • Belgium, Brazil,
Canada,'4 England/ France, Hong
Kong, Italy/ Japan, Panama and
the
Philippines. In 1957 Pfizer
was
again engaged in an expan¬

L. A. DARLING

COMPANY

One of the most phenom¬

in

1950

million

in

to

an

BOUGHT

estimated

has

developed

1957—and

sales.'

|

MORELAND & CO.
Members

Terramycin was the first
of
major discoveries in the

Pfizer's
broad

are

spectrum

antibiotic

field.

For

a time, this
highly successful
product contributed a large part
Of the company's profits.
Many

in
The

by

the

regarded

even

-company

being too dependent

growing

from

of

this

source/

ceased to be

soon

and

cern

profits

on

Midicest
.

,Detroit

1051

as

efforts in

J. Walter Leason

stock
Stock

original

it

acetate

copy

with

thin

pany

plastic

film

result, Pfizer's common
(listed on the New York

pliable

Exchange)

greatly
market

The

com-

also has expanded its prodby the purchase last year

uct line

As'a

an

sheets of transparent cellulose tri-

WOodward 2-3855
Branch

75

Office—Bay

City,

Mich.

as

earnings

However,

this

for

con¬

a

cause

were

used

to

research, production

sales.

-

and

,

59,

affected
decline.

which

1957-58

is

has not been
by the general
It

much

is

now

closer

about
to

the

high of 65% than to the

low of 42%.

The favorable show-

1

.

<<0

<9

,

"SAVING^

it comprises almost
every commer¬
cial item from the "narrow
spec¬

trum"
cin

penicillin

to

broad

brand
newer

the

and

newest

streptomy¬

tetracycline,

Over-the-Counter

spectrum
name

drug (under the
tetracyn) and eve^

combination antibiotics like

Sienemycin
which
work
effectively together than the

more

Quotation Services
for 44 Years1

com¬

ponents alone.
It is a leader in
motion sickness drugs like Bonamine
and
in
nasal
decongest¬

ants, with important business

in

National Quotation Bureau
incorporated

steroids,

tranquilizers, and good
ing is explained by the excellent
of
poo«?Miities in vaccines.
punching and binding machines 1957
earnings of $4.22 compared
Qstic binders.
These two with $3.36 a
4Pfizer /is. now testing an oral
sh»™>
1(>5* —
machines .are expected ,,to a$q. er
shares,
Dividend, payments
Continued on page 6
,

Penobscot Building

constantly.

process

completely

■:

DETROIT 26, MICII.

of the

one

a

both sides of

Exchange

Exchange

ening

markets

which

Stock
Stock

de-:
velop the company's well rounded

been

duce acopy.,
Last October Apeco
unveiled its new desk-top lamin-

or

.

end

no

Concentration

revolutionary has converted a 109-year old firm
to be mar- (founded 1849) and
formerly speketed soon, which is automatic, recializing in fine chemicals, into a
quiring only one paper insertion,
vigorous diversified growth comand takes only 18 seconds to
pro- pany.
-

either

SOLD

sight. Pfizer is easily the world
leader
in
foreign
ethical
drug

v...

machine,

machine

—

Late Information

Today, Pfizer is a well balanced
Pfizer
has
company. Only about 31% of sales
outstanding com- is derived
from
Pfizer Labora¬
$250,000 per year, or 2% of sales, panies in effectively
bringing new tories which
and the company's research proproduces the broadest
hopes of health to people throughline of antibiotics in the
gram is showing definite results, out the
industry;
world.
In the
photocopy

Street, New York 5, N. Y.

Under wilers—Distributors

hundred

research

From

the U.

37 Wall

out¬

Diversification Replaces

medicine

It

Banker a

in

p r e v e n tive

now.

-i

Investment

of

Brooklyn.

distribution

states/

added

$75

industry

b ir o a d

&

$10

of

awareness

Tokyo, Japan

J

bio¬

known

ended;,its first

years/with

million

when

favored

'

ill Broadway,N.Y.6 C0rtlandt 7-5680

product

become

Brokers

.

Inc. ,■/

of

Yamaichi Securities Co., Ltd.
t

it

enal parts of its business is
foreign
sales which have grown from

pe¬

a

encases

Established 1910

7 Affiliate

:

of

Company

of New York,

v

scheduled to be added in 5 states1
the U.- S. and in 10 countries

defbnsive•

write

or

Yamaichi

; in

•

*

information

current

Securities

sion program that rivalled all its
previous expansions with projects

the concept of

company

•/.Pfizer

the

news.

the

•••

relative

health

en-

in .1947,

leaders/- in / controlled

was

abroad.

^

the

in

current

is

acid—it has

side of its native

indus¬

of

atmg

G. C. HAAS & CO.

'

Co.

stabil-

or

For

Call

throughout
the
entire
world;•' and only,ten years ago

.

precious commodity—health. This
important to keep in mind when

the

Research expenditures run about

International

:

<

business—main

world

out/ Pfizer

Pfizer deals in the world's most

constantly

100

the

>

tended

The Most Precious Commodity

ity

citric

branch offices

our

STOCKS

$207 mil¬
Starting with a fine

;

to

JAPAN

.

portant supply business should
able .the

Birmingham, Ala,
Mobile,Ala. :

Direct wires

chemical engineering. Its produc¬
tion facilities and sales have ex¬

a,

:.V

million

developed sales

fermentation

ex-

at

pay

shares.

photocopy machines, and this im-

experiencing

Stock

is

now

will

company

good level of sales volume during
depressed periods such as we are

American

are

rate, providing
a
3.7%, and it is expected

0f

that

drug

This Is not

on a 8Jl!atC1'

An increase in

Dividends'

;

■

recession
1.0

$12.2

61

10'5%

annual

evidences

concentrates

& specialties

$39.2

lion in 1957.

saies this year of over 25%

riod

accessories

of

.

* rNY 1-1557

;

New Orleans^ La. -

as.

chemical

were up'

tries

Photocopy machines &

other reports

that give you a pretty clear

1956

follows:

as

HAnover 2-0700

dictionary,; defines 'meta¬

,

in-

creased 21-5%- and earnings,? at'"

ness

Millions

Digest, and

sales

income

Rocfor St., New York 9, N. Y,

business in the last 10 years. From

"

was

the number of

tomers

The

morphosis
structure,

4p'

innvooca

lion, or 12.8% over 1956.
This
growth is expected to continue be-

City

cause

Write

cost

for

expected to increase to $150 mil¬

TWX LY 77

New

to

1Qbft

;v

,

cutting, time speeding applications.
According to Apeco's market reJ* WALTER LEASON
searchers, the photocopy industry Manager, Investment Research Dept.,
has increased its volume from $40
Gregory & Sons, New York City /
million in 1952 to $133 million in
Members, New York Stock Exchange
of

LYNCHBURG, VA.
LD 39

A Metamorphosis

producing photocopies.
This is a ak0llt 40%
of
earnings in the
photographic process which trans- future.
fers the negative
image onto a
Apeco's capitalization consists oFr
positive sheet by passage through
$i>250,000 of long term debt and :
a chemical
solution, and it copies 825,00() shares of common stock.?
anything.
-phe company was privately held
Photocopy machines are usually until March of last year when
employed where only 1 to 10 200,000 shares were offered to the
copies are desired and they are public, and the "float" now prob-V
fast
being adopted by business ably consists of only these 200,000

TEL. REctor 2-7815

19

with

has

net

Exchange t
Exchange

Members American Stock

million,

$14.9

t Members New York
Stock

totaled

veal

to

? Bought-—-Sold—Quoted

Steiner; Rouse & Co
i

®l
ended last
J"™ *,il! LL?99

begin until 1952, when it adapted

American

Stock

*•'<

Walter

Co.—J;

&

Leason, / Manager,
Investment
Research
Dept., / Gregory
&
Sons, New York City. (Page 2) ;

v

%

number of shares.

,.

_

has

photocopy machine

Members

•/

Net income during■this

$2'31'
,

ffcpONNELL&fO.

,

reason-30 sales gained/22.4%,

seems

19-57

Apeco

Brown, ;; Re-:
search Dept., Stiilman, Maynard:
& Co., New York City (Page 2%

"a change of form,
Sales have increased at an average
or substance as> trans¬
annual rate of 42.5% and the total formation by magic or witchcraft.','
gain between 1952 and 1957 was "Metamorphosis"
well
describes
what
has
happened to Pfizer's

stock, down considerably from its

SCRIP

&

new

Louisiana Securities

Equipment

Ronald

$2.10 in 1957 compared
$1.75 in 1956. The year-end
withir? t.hp 1 quarterly dividend was increased
While competition withinthe
industry .g intense) three compan-/ from>$0.35 to $0.40, and the $0.65
ies—Apeco, Three M, and East-./ extra dividend indicates that $2.25
man
Kodak—have about 90% of < may be,; regarded as a minimum
the market, with Apeco estimat¬ for 1958.
The stock is selling at
ing its share atv approximately 4 14 times last year's earnings and
25y0.
The success of the pnoto;/ yields; 3.8% on a $2.25 dividend,
copy
machines
has
encouraged basis. These ratios are more rea¬
many companies to enter the field, sonable than those of good qual¬
and more might join the compe¬ ity chemical issues which are far
tition in the future, but Apeco, more cyclical and have less clear¬
with its strong position in the in¬ ly defined growth ahead.
dustry, should continue to be one

sales

RIGHTS

Photocopy
H.

—

„

high,

are

and

Ronald

Co.

Charles; Pfizer

The company's growth has been
phenomenal in the last 6 years.

has been

Principal Cities

the''

of

growth

SAN FRANCISCO

•

company's

sales andearn-

Teletype NY 1-40

BOSTON

accounts

ness

v

„

Equipment

producers in

New York Hanseatic

,<■

?ew Products, like the photocopespecially attractive iers» wl11 also result m a large r *>

an

Alabama &

achieve like sales results.

situation for capital growth at this
'time
It is
one
of tne leading
the leaning
time.
it
is
one
01

you

Try "HANSEATIC"

Associate

?

laminating machine is expected'to
These

Photocopy Equipment Co.

(Apeco) is

American

American

particular security/f

StiMman, ^aynard &

American Photocopy

serve you

Week's

./Their Selections

about $1 million to sales this year

Go., i\ew lork Li y

Ready to

a

are not intended to be, nor
offer to sell the securities discussed.)

as an

H. RONALD BROWN

geared for service
Nationwide

for favoring

(The articles contained in this forum
are

•

of experts <

experience

years

in Over-the-Counter
•

This

Forum Participants and

advisory field from all sections of the country

participate and give their

35

Over

Security! Like Best ;J?V

Established 1913

46 Front Street
OHTrJAGP

...

New York4,
SAN

N.Y

T^R.AXrrTPU-v

„

-T

(831)

laand moCehT.
icrem Financial Chronicle

Number 5718

Volume 187

INDEX

■

Time for

New

a

at

llCHTflMin

R. S.
>V:,

3

Articles and News,

v

Page

■,

mmmm

AND COMPANY

Equity Investment Policy for Today—Armand G. Erpf_„„Cover

THE MUSIC MAN

By CYRUS EATON*

Chesapeake and Ohio Railway

of

;

industrialist, and

New Look at International Relations
—Cyrus W. Eaton—

There's More to the Economy Than

accommodation

workable

a

with

Russians"

the

trialist

Soviet-hate-monger" and calls for reversal of his policy or
Claims Russian intellectuals carry great¬

Industry—Marcus Nadler

J Federal

fired

mounting impact of
especially in the
missiles field, I feel impelled to
address myself to what I consider
•
'
' • ;
to be the crucial '•>. question

m

the

.

.

.

the

of

How,

f

;;—Morton S. Allen

t

their

this

reached

nuclear weap¬

who had made the

listic missiles,-

butions in

-/can

greatest contri¬
wartime American

our

laboratories

keep

we

/mankind

were

'hismagnif- nations were, of course, not long
materi-; in catching up with the United
States on the A-bomb.
;
al accomplish¬
ments
f r o m
/ Then came fusion, which can be
going up in superficially described, as . a re¬
versal of the process of fission,-by
smoke and
which infinitely greater quantities
/flames?
icent

Cyrus S. Eatoa

released.
most
easily employed for fusion, the
weapon
utilizing fusion is the
hydrogen bomb. While the United

of

Sixteenyears

the compla¬
delusion that she could remain

cent

States, from

at

peace

rest

the

while

world's major powers were

to

went

tests

but

working feverishly to solve
mysteries of the atom. At
the
University
of Chicago, of
which I am a trustee, we assem¬
bled the leading nuclear scientists
of the world, with the collabora¬
tion of the late Albert Einstein. A
the

that

plaque
the

' scene

Chicago

y

we later placed at
of
the
remarkable

experiments

proclaims,

.

1942,
man
first/self-sus¬

December -: 2,

"On

achieved

here

the

taining chain reaction, and there¬
by initiated the controlled release
of nuclear energy.", This harness¬
ing of fission marked the
ning of the Atomic Age. v

begin¬
.

.. ^

August 16, 1945, the United
dropped the first A-bomb
Hiroshima.
Immediate fatali¬

On

States
on

ties
ese

are

.

t

78,000 of the Japan¬

totalled

city's' 340,000 people. Others
still dying from the after¬

math, and future generations will
also be affected.
On the day of
Hiroshima's decimation, one of

.

University ex¬
"This is a sad
day for-us scientists. * Let us hope
we have not placed dynamite in

our

top

Chicago

■■

perts Commented,

the hands

of

children."

-

Atomic Competition
•

r

%"

test

first

in

*An address by Mr. Eaton before the
Canadian
Club of
Montreal, Montreal,
Canada, Feb. 10, 1958.

MINERALS
LITHIUM CORP.

.

15

—

20

J.F.ReilIy&Co.,Inc.
Members Salt Lake City Stock

1

12

Eisenhower Expects Recession to End in March

:

1955,

and
As

4, 1957, the world's

successfully
Soviet Union.
The/sending of the 184-pound
Sputnik by rocket into space not
only signaled the beginning' of
the
age
of cosmic exploration,
but also brought forcefully home
to
us
the formidable fact that
Russia is far ahead in the field of
missiles.
A month later, Russia
reaffirmed
her
supremacy - by
satellite

first

launched

by

43

i

> SEC Reports to Congress

K. M. Bartlett Suggests Positive

Business Leadership

39

45

.

Yes, But

.

.

(Boxed)

.

Regular Features

Aircraft Radio

Cover

-

.

Pacific Uranium
Banks and Insurance Stocks

27

——

American Cement
Coming Events in the Investment Field

8

Dealer-Broker Investment Recommendations

H

-

8

Pan American

/From Washington

Mutual Funds
•'

NSTA Notes

18

6

Ahead of the News—Carlisle Bargeron

Indications of Current Business

——;

Activity

Singer, Bean

46

—

-

HA 2-0270 40 Exchange

-8

———

,

:■
'
Status .Today
..

r

Railroad

position/ of the
US and- the USSR
in

engaged

are

•;;/%:

.

;v

'/;•/' ■' '', '

••

a

monumental

Teletype NY 1-1825 & 1-4844
Direct Wires to

Philadelphia

Los Angeles

Chicago

Dallas

47

• T

.

31

—

Lithium Corp.

16

Securities

Securities Now in Registration

—

Prospective Security Offerings
American bomb¬
ers
are
in the
air around the
V Securities Salesman's Corner
clock with lethal loads |Of hydro¬

armaments race.

bombs,

each with

a power
great as the

1

/

>/The Market

.

.

.

j

The Security I Like

the

!

The

28

i

bombers

Continued

are

on

on page

38
General Minerals

42

*

t.

35

Alaska Oil & Mineral

r 16

and You—By Wallace Streete—

mightiest bomb dropped on Ger¬
many
in World War II.; More
American

2

Best—

United Western Minerals
'

•' I

4

Industry

State of Trade and

Washington and You

—

t

48

,

Quinta Corp.
i

L

Published

,

have

The COMMERCIAL and
FINANCIAL CHRONICLE

specialized in

Reg.

WILLIAM B.
1

25

'

Park

U.

S.

Reentered

DANA COMPANY,

Publishers

Spencer Trask & Co.
-

25

Members New

BROAD

TELEPHONE HAnover

York Stock Exchange

4, N. Y.

ST., NEW YORK

24300

TELETYPE NY 1-5

•

HERBERT D.
•

r

v

•

Nashville




Boston
•

•

Chicago

Schenectady

•

•

Glens Falls

Worcester

Publisher

Dominion

Other

20, 1958

-

In

United

Territories

Pan-American

SEIBERT, President

Thursday, February

.

•j

Rates
_

Subscriptions

i

of

Union,

$65.00

Canada,

Countries,

Qther

and

States,

U.

Members
per year

8

ol

INCORPORATED

ir

$68.00 per year

$72.00 per year

W* V. FRANKEL & CO.
39 BROADWAY, NEW

Thursday (general news and adissue) and every Monday (comstatistical issue—market quotation

Every

records
state

corporation

and

Other

cC

citv news,

Offices-, 135

news,

bank clearings

etc.).
South

La

Salle

St.

37 ffl (telephone Stat, 2-0633).

Bftnk and Quotation fteeord — Montnij
$40.00 per year. (Foreign Postage extra

Note—On account of the fluctuations li
the rate of exchange, remittances for for
eign subscriptions and advertisements muai

tie made la Sew Irorlc laada.

YORK 6

,•

|>tlb)k^loha

WHitehall
Teletype NY

I

trertising
Dlete

Albany

SEIBERT, Editor &

WILLIAM DANA

second-class matter Febru¬

Subscription

Place, New York 7, N. Y.
9576 ' •

Possessions,
.i.

as

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

ary

Patent Office

REctor 2-9570 to

/

Sabre-Pinon

Company

v

PREFERRED STOCKS

i

Copyright 1958 by William B. Dana

Twice Weekly

..

For many years we

inc.
PI., N. Y.

the

is

The

world?

vvf

/.

>

What

• =■

•

Mackie,

&

44

*

■———

——

Sulphur

Alaska Oil and Mineral

Einzig: "British Employers and Unions Threaten
Conservative Rule"
—

aloft, our experts frankly concede 0 Our Reporter's Report—
V.1that we are still fivq years behind
;/• "
V
•• •'
the Soviet Union. /
Public Utility Securities
.' •

•

Teletype: SU 158

45

-

(Editorial)

As We See It

•

-

,

Exchange PI., Salt Lake City

DAvis 8-8786

catapulting
a / second
satellite \i News About Banks and Bankers——
.
18
weighing almost half a ton ;' a
thousand miles into the,. skies.
v'' Observations—A. Wilfred May—
—
—--————
4
Granted that the United States
has recently succeeded in sending
//Our Reporter on Governments————————/— 31
its own little 31-p0Und Explorer

World's

HEnderson 4-8504

Teletype: JCY 1160

was

the

•

Exch

Exchange PL, Jersey City

Dlgby 4-4970

the United States third.

five million times as

came

UNITED WESTERN

14

Spokane Stock Exchange

has

On October

VTC'a)

13

today,

gen
-

to a swift
conclusion after the United States
World War II

,

countered

Russia

it/would appear that
gone the furthest in
advances in the field of fusion,
with Russia probably second, and
of

Britain

known

to be

■p.:

her

A

___/

&

in H-bomb

the world

1954,

Great Britain followed in 1957.

labora¬

the

in

tories/ Tho Germans were

in

with

United States
not only; on the

war

battlefronts,

energy / are

led

States

of the
locked

The

warfare.

in
►

atomic

.v

(Common

J Check Mounting Unemployment With Professional Salesmen
J —Roger W. Babson__;
L
21

v

Because hydrogen nuclei are

Japan's smashing surprise actack on Pearl Harbor roused the
ago

United

-

12

Outlook for Textile Stocks—Emil N. Haddard

Italians, Danes,

all

•

Jules Backman

/ •

Hungarians./Other

Germans, and

and

SAN JUAN

RACEWAY

iJi.—'.

| Wages, Productivity and Prices: Post World War H

despite the fact that the scientists

ons"^ and bal.

HYCON

11

1958: A Critical Year—Malcolm P. McNair

/

riddle.,/We
foolish /conclusion

solve

STREET, NEW YORK

10

;

i
Survival—Oecil Brown

An American Road to

Permanent Optimistic Bias: A New Problem for Forecasters
which is an unfortunate ;
X"—A. G. Abramson—
1
——
trait, we concluded that
held a permanent monopoly
A-bomb secrets, and that none 0- Taxes and Economic Conditions—Walter Maynard—
to

obsoletes!

MANUFACTURING

The Case for Investing in Natural Resource Companies

Lapsing back into compla¬

able

of.

era

WALL

9

Recession—Roy Blough

a

of the rest of the world would be

this

in

,

new

.%

on

hour:

plenty of

up

your

7

____

American
we

for

Telephone: WHitehall 4-6551

6

—

cency,

.

mi

-

second A-bomb on Naga¬

a

saki.

events,

•

——

Insurance Co.—Ira U. Cobleigh

^ How to Meet
ci

weight with their government and possess the likelihood to

With

has drummed

.

re

■

'

world

5

99

enlighten and ameliorate the Soviet system's harshness.;

/;

.

do

statesmen for

our

removal from office.
est

Monetary-

Conclusions About the Economy and the Textile-Apparel

and

stalling.; The Cleveland indus¬
depicts Secretary of State Dulles as a "self-appointed

condemns

3

Fiscal Activities—Hon. Robert B. Anderson

fears for a world "hell-bent toward . . . bank¬
and suicide.":. Mr. Eaton contends "we can and must

ruptcy

WALL STREET
.

ex¬

i

presses grave

reach

'

a

_———

sponsor

of ^scientists and intellectuals,

of Pugwash conferences

Time for

•;

;

Prominent Canadian and American

Cover

Unwarranted Doubts—Robert C. Tyson

Chairman of the Board, Steep Rock Iron Mines, Ltd., and

Direct

PHILADELPHIA

3-3960

1-4040 & 4041
Wires

to

SALT LAKE CITY

4

information.

Observations

.

.

TOP-HOLE INVESTING

TECHNIQUE
The

.

.

t

unlisted

markets

.

transactions

mitted to all of the trustees aggre¬

in

securities

itpon 01
tne
Boston Per¬

Prop¬

.

shares'

present

Thursday, February

,

..

uable in filling some important
the portfolio before expenses, to
Founded
gaps in the industry's "vital sta¬
a net-after-expense return of 4.3%
1893, jit: is.
tistics," as on the scope of the
-....^
the oldest in-• to the shareholders.
market off the exchanges. Thus it
vestment trust
Good Asset Record, Too
is shown that there are an esti¬
in the United
"And a highly satisfactory per¬ mated
80,000 to 90,000 corporations
States.
|
formance record has also accom¬ and governmental bodies • in the
Year-to-year panied these management tech¬ United
States, each of which has;
changes in its niques. During 1957, after
adding outstanding a sufficient amount of
porfolio, which, back the capital gains distribu¬
publicly held securities to warrant
consists
al¬
tion, the net asset value per share on occasion an over-the-counter
most
entirely declined 7%,' compared with de¬ market. Based on a count
of quo¬
pany.

in

20

1953

Electric Output

Carloadings
Retail Trade

State of Trade

Commodity Price Index
Food Price

and

The book thoroughly covers such

only $16,629, the entire aspects as the character and great
to the shareholders last extent of these markets, volume of
year
added up to only $35,257. activity, pricing and price differ¬
This is equivalent to 7% of the
entials, characteristics of transac¬
income and 0.27% on the assets, tions,
positioning practices, the
appreciably lower than the fund problems confronting these mar¬
industry average.
kets and the relationship between
"'
:
This low expense ratio combined the over-the-counter and the ex¬
the

.

Steel Production

The

Auto

Industry

gating

with

.

occurs.

market change markets.
;.
<>
discount from asset value, raises
erty Trust, a
Vitiil Industry Statistics
closed-end in¬ the current yield from the gross
The volume is particularly val¬
income earned -directly on
vestment com¬ 3.8%
sonal

.

e

Index

Production

Business Failures

Cs-

expenses

advantage - of
long-term
digging-in with a minimum of
portfolio activity is interestingly
highlighted by the current annual
.

on

equivalent to that available on the
exchanges.
Furthermore, it will
give to the nonprofessional war¬
ranted appreciation of that broad
nationwide arena where by far
the greatest dollar volume of

By A. WILFRED MAY

•

Chronicle

The Commercial and Financial

(832)

:J

The current

performance of trade and industry shows little
improvement over that of previous weeks, but then, not too much
was expected at this time, since the month of March was
signalled
out to be the turning point in our lagging economy when
business
.

show-some

would

evidence

,of better days ahead. President
Wednesday of last week stated that im¬
provement in business should start in March and spoke of new
plans to spur the economy, if such aid should be necessary.
Eisenhower himself

on

One note of encouragement,

however,-was to be found the
relating to the latest report of the United
States Department of Labor on home building covering the month
of January. It placed housing starts for that period at an annual
rate of 1,030,000. This figure exceeded the December level and was
the highest, annual rate, since August,
1957, when such starts
totaled 1,056,000.
"
"'
r
~v

past week in the.

news

,

A. Wilfred Mar

of

stocks

common

clines

of

15%

in

the

Dow

Jones

tations that appear in investment
services and in private releases of

of the highest grade,
Composite
Stock
Average
and
extremely minor. Dur¬ 12% in the Industrial
Average. investment banking firms, the au¬
ing 1957, typically, the aggregate Adding back both
capital gains thors estimate as outstanding a
and

have been

dollar

amounts

of

transactions

and income

value

asset

4%,

.

new

compared

.

business upturn about the middle of the year,
consistently listed housing as one of the favorable
factors indicating the early return of economic recovery.
The
general prediction for the full year 1958 is around 1,100,000 againstl
1957 private starts of about 990,000.

1,

-

,,

operates without
of

its

fees

own.

an

office

or

staff

Thus, with the total

documented

•tiling

paid to the trust company at

$11,662 and the remuneration

re¬

volume

the

goes

widespread

far

need

'"These
Arthur

industry
data compiled
Weisenberger & Co.

The

a

officials have

In the steel

industry, "The Iron Age" reports this week that
are bringing pressure on the mills to cut prices,
getting anywhere, since the pressure on prices is
an old story to steel veterans.
They recall the fiasco of the 1930's
when depressed business conditions brought about a wave of pricecutting that demoralized the industry, this trade paper further
some

in
for
by

these markets function, the forces

influencing
their
and

their

development,
distinctive characteristics,

their broad problems.

purchase of

steel

states.
;

«

Some mills

BROS., INC.

30's

warning their sales forces to expect increasing

to

"The Iron Age" adds that the mills learned their lesson in the
and they know from that experience that price cuts failed

bring in

any

business, that they were selling the same
prices.

new

amount of steel at lower

The

mill's

position

on prices is understandable, being faced
inflationary factors, including wages, fringes, ex¬
pansion, selling and shipping. Tliey have just given their workers

with "built-in"

a

5-cents-an-hour

July 1
on

wage boost and face another wage increase
under their three-year contract. Scrap prices have been

the rise.
The

steel

price situation is pretty much the same for the nation's
warehouses, continues "The Iron Age." However, there are
isolated

some

For

instance,

instances

of

price

fluctuations

in

certain

Los

Angeles

warehouse

prices

dropped

"The Iron Age" states that the storm that struck the eastern
part of the country last week-end will strengthen steel scrap
prices throughout the East.
Scrap collections in the East are

virtually at a standstill.
already 011 the rise.

The storm hit at

a

time when prices were
■

Meanwhile, there is

growing feeling among steel men that
their market has bottomed out. Incoming orders are still slightly
lower than the current steel production rate, but the downtrend
of the last several months appears to have leveled off. The mills
are still looking for a pickup in March.
This trade magazine points out that signs are increasing that
steel

users'

inventories

a

have

hit

hand-to-mouth

levels.

OF

S. ATKINS

SAN

the

automotive

industry United States passenger car and
the past week, "Ward's Automotive

truck production declined 4%

Reports" stated

Friday last.
104,419 cars and 18,814 trucks compared to
the preceding week's totals of 109,028 cars and 19,481 trucks. In
on

were

ESTABLISHED




on

page

1894fe

STATE AND MUNICIPAL BONDS
CORPORATE

was

BOND$

LOCAL STOCKS

negotiated and consummated by

mm

SchwabacW&Co.

mid-

reportedly is down to about a one-week
inventory. Another steel user gave a 30-ton order to a warehouse
because his regular mill supplier couldn't give him the prompt
delivery he .needed.
Prompt delivery is a major selling point for the mills. Sales
forces are pressuring for a buildup of finished steel products at
the mill level for competitive reasons. Even plate and structural,
which were on a three-to-six months delivery basis last summer,
are being offered for two-to-three-week delivery today, concludes
"The Iron Age."

COMPANY

FRANCISCO

A

western appliance maker

Continued

ROBERT

areas.

early in
December by as much as $35 per ton, but part of this drop, about
$15 of it, was restored in recent weeks. The December price cut
did not stimulate any new business.

Scheduled

by

are

for price concessions and are pointing out that established
prices and terms of sales still hold for all customers.
pressure

In

ROOS

users

but they are not

.

,

Administration economists expect the rise to continue.

year.

Forecasting

distributions, Boston's

total of 40,000 to 50,000 govern¬
during the year fell mental and corporate issues overwith an average the-counter. Of these, 3,000 issues
decline of 11% by 10 diversified are
thought to be traded daily, of
time, the absence of an absolute closed-end
funds, and a shrinkage which 70% are common shares,4
fetish of rigidity is seen in major
of 12% for the average of 60 open- 10%
preferreds, 10%
corporate
changes in the overall composi¬ end common stock
funds.^
bonds, and another 10% govern¬
tion of the portfolio over the longThe 1 comparative
record,
of ment and municipal bonds.
term.
Whereas tin 1913, :~12%
of course, cannot be so favorable in
the portfolio consisted of bonds,
Relative Use By Institutions
all periods. But on the long-term
and 24% of preferred stocks, now
-The study gives important at¬
tests of both principal and income,
tention to the relative impact on
practically
the ~ entire "holdings it is evident that this form
of
consist of common stocks.
And common
stock trust fund manage¬ exchange and unlisted markets of
whereas 16% was then in railroad
transactions
by institutions.
In
ment at a discount renders the
recent years thinness in exchange
securities, now only 2% is left investor service which is
unique
markets has been accompanied by
there; ihen 20% was in real estate and highly
advantageous.
great growth in institutional op¬
securities, now merely 0.5% is in
this
erations with stepped-up demand
category.
Of the
common
EXPLORING THE
for large-scale purchases and sales.
stocks, industrials accounted for
As a result, the broad opportuni¬
8.3% of the entire portfolio in
OVER-THE-COUNTER
ties
offered
1913; now two-thirds is so placed.
by the over-theThe fund is managed by five
counter markets for seeking offers
MARKET
The investing community is now for large buyers and bids for sell¬
trustees, Messrs. Edward L. Bigelow, Harvey H. Bundy, Francis C. offered an unprecedentedly com¬ ers, has importantly stimulated the
Gray, Henry R. Guild, and Moses prehensive picture of the over- shift from the exchanges by insti¬
counter
Williams, bankers and lawyers the
securities
investors—coupled with
markets. tutional
who
in
accordance
with
New For the structure and operation an increasing
number of block
England practice, also serve as of ;thiS: vitally important invest¬ transactions.
trustees of other funds; in fact, ment area is
depicted in massive
'"' V A Collective Product
some of them have been:
brought detail in a newly published vol¬
The collection of this material
up., in
the
trust business.
Mr. ume, THE OVER-THE-COUNTER
was
made possible by the active
Bundy is a member of a promi¬ SECURITIES MARKETS, By IR¬
cooperation of hundreds of organi¬
nent law firm.
Mr. Bigelow is WIN FRIEND, Professor
of Fi¬ zations in the unlisted securities
Chairman of the Board and Mr. nance, Wharton School
of Finance industry; including extensive de¬
Williams is a director of the Sec¬ and
Commerce; WILLIS J. WINN, tails obtained from thousands of
ond Bank-State Street Trust Com¬ Vice-Dean
of the Wharton School;
separate over-the-counter trans¬
pany.
and G. WRIGHT HOFFMAN, for¬
actions.
Now
available
in
one
mer
Director of the institution's
Low Expense Incidence
volume, this information gives ev¬
This trust company takes care Securities Research Unit
(Mc¬ eryone interested in this
import¬
of the books and all records and Graw-Hill. 490 pp., 6 x 9; $12.50),
ant area of the investment world
transactions of the fund, which The fact-packed and minutely
a thorough understanding of how
totaled only $231,000 of purchases
and $490,000 of sales, made up of
six
transactions.
At
the
same

J, The January gain extended the general pickup, in private
housing starts which began in the latter half of 1957 into the

4

The Robins

6n;$umphrey Company,Inc.

RHODES-HAVERTY BLDG.

ATLANTA

WALNUT 0316

LONG

1, GEORGIA

DISTANCE 421

36

Volume

Number 5718

187

..

herited
with

There's More to the Economy
Than

This
ent.

Secretary of the Treasury

,;.X
.

..

Treasurer Anderson

Though

-A

I

which

may

delay

believe it is always a tempta¬

generation to think
of its own problems as more cru¬
cial—as casting a longer shadow

tion

for each

the

over

fu-

tur e—than

of other

those

periods. And
just
as
our
difficul-

own

ties

seem

larger,

so

our

means

for

re¬

them

solving

It

was

new.

This

for

vates

the worker

greater

and

skills

universal

moti¬

to acquire

new

drive

education; the
to expansion in

business, large and small.
?

universal

This

of the economy, and

has

drive

Our; transportation

munication facilities

and

com-

.

increas¬

are

ing in both extent and efficiency,
and

been

in agriculture

it has increased even more.

better

search of rewards permeates every

differ¬

was

earnings

urge

man
idea

was,

the

and all the

gone

our

wholesale and retail dis¬

tributive

industries

are

greatly

.

community..

.

.

j

;

;

.

tions inherent in the whole

widening benefits which have
with it." A wide variety of
figures can be cited—the fact that
family
now

the

actually work against progress."

or

new

a

Moreover, a number of ' these
factors responsible for our pre¬
vious growth have stronger po¬

predictable ratio to use of a few tools intended to modify the
people's collective judgment and actions. Thus, Secretary;
Anderson skeptically views ability of influential monetary-;
fiscal weapons to alter our economic system in a short period
of time and recommends we "avoid wrong or hastily considered '
steps

or

trating the changes made in Amer¬ whole
society
derives
benefit
ican life by mass production and from all the skills and knowledge

laissez-faire is over," he stresses the importance of the creative

individual in warning that our economy does not respond in a

.

The

past.

widening the network of services
—as
is evidenced by the spread
of
supermarkets
and * suburban
shopping centers in almost every

'

.

the
slant

for all the world to the
great- generating force.? for
see,
American.
And, finally, it cumulative growth in the United
has met the supreme test'— the
States since the beginning of. our1 American
system works." history. * Because of decentraliza¬
There are many ways of illus¬ tion of economic • initiative, our

_

points out that "the day of

,

from
new

the work
bench, in the laboratory, or in a
skyscraper office—could be sure
of a hearing.

By HON. ROBERT B. ANDERSON*
i

a

—whether developed on

Monetaiy-Fiscal Activities

5

(833)

The Commercial and Financial Chronicle

.

our

incomes

average

fact

homes

in

over

that

this
$5,000

more

are

than

ambitions and inven¬

people. tentials pow, than in: the past.
expansion in the Research has become big business,
country American economy and in Ameri¬ with more money than ever be¬
a

year;

60%

can

of

for

drive

The

society

millions

of

springs from tens of
sources

—

not

from

fore
our

being, devoted; to
fund

of

scientific

enlarging
and

tech¬

owner-occupied;

some
power group on top, as in nical knowledge. Private expendi¬
startling figures on the owner¬ authoritarian systems.:
tures for research which amounted
\
x
are many ways of characterizing
ship of such things as automobiles, xBefore, examining the" implica¬ to $200 million in 1939 have in¬
the American system; no one of
telephones and electric household tions of our current situation, it creased to more than $3 billion a
them, certainly, can tell the whole
devices.
j1
is helpful to look a little more year at present—quite aside from
story. But I believe that most of
us would agree on one outstandingThis, of course, is only part of closely
at
the
specific factors the research expenditures of the
?
;
characteristic of both our form of the material side of the picture. making for long-term growth in Federal Government.

the

Our schools, our recreational fa¬ our
economy—now, as in the past.
cilities, our community activities,
It may be noted first of all that
That is the placing our churches, the rapid spread in while our economic growth has

the way of life

government and
which

have come to designate

we

American.

as

,

responsibility for both

of ultimate

recent

years

of

local

centers

proceeded at a uniform rate, part of every American family.
long periods of time Our nation is growing at the rate
all the result of the continuous
show no tendency on the part of of three million persons a year,
striving of individual Americans the
growth rate in this country equivalent to adding a city the
to better the conditions in which
to diminish.
The achievement of size of Los Angeles to our con¬
they live.
continually
higher
output
and sumer population every 12 months.
Because of their firm rooting in continually wider sharing of that Together,
the forces of change
the past, the forces making for output over a period of time is working for individual business

policy and action squarely on the music, art and adult education
individual citizen.
From the

of

Finally,
we
have
a
rapidly
growing population and a drive
for increasing betterment on the

days of the first town

meetings right down to the pres¬

sometimes-

not

are

data covering

ent, Americans have eagerly
grasped
the
opportunities
for
elusive
than managing their own affairs and
we
like to working out their own problems growth and creative expression in not an imagined Utopia.
promotion and expansion and in¬
dividual family betterment make
think was the presented by a free society. More every sector of American life are
In the United States, it is and
case
in
the than 100 years ago a visitor to the present today as strong as ever
up the most powerful drive to¬
has been a practical goal for prac¬
Robert B. Anderson
ward continued growth that- the
United States, Alexis dc Tocque- before. We need to recognize, how¬ tical men.
past.
world has ever known.; This has ?
The birthday of Abraham Lin¬ ville, painted this picture of the ever, that the very vitality of our
Now as to the long-term growth
been so in the past and with the
and
its
ever-changing
coln, should make us wary of fall¬ American scene: "No sooner do system
factors which are strongly present
character will make for a differ¬
growing
diffusion
of technical
ing into
this habit of thought. you set foot on the American
today.
skills and of education, it is so
Faced with events which many ground," he said, "than you are ent momentum in our economy at
Recites Growth Factors
in increasing degree in the present.
different
times.
The ' important
thought would result in shattering stunned by a kind of tumult. A
First among these may be men¬
the Union, Abraham Lincoln had confused clamor is heard on every thing is to be wise enough and
Studies Implications
enough to view our tioned certain human resources.
the supreme faith to look far into side, and a thousand simultaneous perceptive
These are some of the powerful
the future and
to speak of the voices demand the satisfaction of present situation in the proper Managerial ability, sparking mil¬
American
ideal
as
"the germ their social wants. Everything is perspective.. It is only when we lions of separate businesses, large long-term factors which have kept
our economy on a continuous up¬
which has vegetated and still is in motion. Here the people of one understand the true sources of our and small, shows no evidence of
grade, despite occasional setbacks
to .grow and expand into the Uni¬ quarter
meet to decide on the productive power that we can take deterioration; in fact, enterprises
and pauses.- What are their im¬
versal^ liberty^ of mankind."
building of a chuch. There a rep¬ the right kind of actions for pro¬ are now planned ahead with more
plications for our present situa¬
resentative is being elected,
A moting growth in our particular care than ever before.
Abraham Lincoln's vision was
tion? V ■;
:
little farther, the delegates of a type of economy, and avoid wrong
The
American- business
com¬
great enough to see America not
First of all, I think we should
county are hastening to consult or hastily considered steps which munity is more development-con¬
as an achievement, but as part of
upon
some
local improvements. may delay or actually work against scious than it has ever been; it is remember that we are dealing with
a process—a process whereby the
economic
mechanism highly
Elsewhere the laborers of a village ■progress.; X ^t^x'x ?? X;/?■■'•".'6:"
more
alert to new markets and an
creative energies of free individu¬
diffused over a wide geographical
als ate constantly working to give quit their plows to deliberate upon Sources of Our Productive Power to the use of new materials, proc¬
area, involving millions of people
a projected road or public school."
esses, and techniques.
new
form to the ideals set down
and producing an annual gross na¬
What, then, are the sources of
All of this, observed de TocqueOur labor force remains highly
by the Founding Fathers. At the
productive
power
on
the
ville, has to be seen to be under¬ the
mobile and posseses growing skills tional product of about $435 bil¬
beginning of our history, George
American economy? As I have al¬
stood; and he added the shrewd
and
adaptabilities to
the new lion. While all of the monetary
Washington had said that liberty
comment that "This ceaseless agi¬ ready indicated—and as visitors
techniques and pTocfe'S&bs of ihdus- and fiscal instruments available
and self-government are "finally
tation
may be the
greatest to out country began to glimpse try.
staked
on
the» experiment
x". ? ./■"> xv
en¬
V.?;
over
to the Government are important
a
century ago — the major
trusted to the hands of the Ameri¬ advantage of democracy."
characteristic
of
the
American ; Our stock of capital goods per and are highly influential, they
can
people." Not only Abraham
worker keeps mounting
and is
economy
which makes it stand
What Our System Produced
Lincoln, but every American be¬
pushing output per do not within themselves consti¬
out from all others is the diffusion continually
Individual responsibility—facing
fore or since has felt intuitively
worker upward. The rate of out¬ tute the entire means by which
of economic decision and economic
that this is so.
problems and getting things started action. In our free society, sparked put per man hour has increased the whole course of our very
at the grass roots—has kept Amer¬
What has this conviction meant
by the profit* motive, risk and by more than 3% per year in re¬
Continued on page 27
in the history of our Nation? There icans working, risking, adventur¬ enterprise
are
encouraged; the cent years in the nonfarm sector
ing, striving, and above all, chang¬
♦An address by Mr. Anderson before
ing and adding to the store of
the Union League Club, Philadelphia, Pa.,
more

seem

-

...

.

Feb.

e

arc

accomplishments

and

ideas

12, 1958.

pleased to announce the

in¬

Bank Stocks

installation of a

Direct Private Wire
Our
to our

correspondent

of

analysis of the 1957 year-end reports of a group

outstanding banks is completed and now
A copy

available.

will be sent free upon request.

Stewart-Eubanks -Meyerson 8 Co.
Members
New York Stock

Exchange

2)16 Montgomery

Pacific Coast Stock Exchange

Street, San Francisco

4, Cat.

in bank shares and are prepared to

We deal actively

buy

or

sell in large or small blocks at net prices.

CO.

.E.W
HUT TON &
ESTABLISHED 1886

Members New York

exchanges \

New York

CINCINNATI

YOU K

NEW

Blyth & Co., Inc.

Slock Exchange

and other leading

Boston
Philadelphia
Lexington, Ky*

Dayton

Boston

Baltimore

Detroit

fjxviston. Me.

Pasadena

Biddcford, Me.

Burlington, Vt.

Columbus. O.

llarifonl

*

Portland. Me.

Boston. Pa.

•

•

San Francisco

Philadelphia

•

Minneapolis

•
•

•

San Diego

•

T

r

-



*

"v.

4.

'*

■*»

*

* 1 lb

-■%.

*

* c'-f

,

*

k

»

*

t

#. r *<► £

>

#- t

* 4" f

h

*

•

V

•

Chicago

Pittsburgh

»

•

Spokane
San Jose

•

Los Angeles

•

Seattle

•

Portland

Cleveland • Louisville • Indianapolis
•
Oakland •
Eureka • Sacramento
•
Fresno •
Palo Alto • Oxnard

Number 5718

Volume 187

Time (or

.

.

(831)

The Commercial and Financial Chronicle

.

INDEX

New Look aC
International Relations
a

Page

t

Chesapeake and Ohio Railway

THE MUSIC MAN
of

,,

Time for

sponsor

4 —Cyrus W. Eaton.

<

reach

accommodation

condemns

firod ^ second A-h6mb

impact of
especially r ire the
missiles field, I feel impelled to
address myself to what I consider
mounting

.»

cial *.

The

able

flames?
Cytui S. Eat mi

were,

catching

States

described

superficially
which

v

rJ

as

of the
locked
United States
rest

the

world's major powers were

The
not

only

war

labora¬

the

in

the

on

The Germans were known

feverishly to solve
of the atom.
At
University
of
Chicago, of

be working

mysteries

the

I

which

am

a

scientists

bled the leading nuclear

with the collabora¬
tion of the late Albert Einstein. A
the

that

at

remarkable

the

proclaims,

experiments

Chicago
•On

placed

later

we

of

scene

2,
1942,
man
the first. self-sus¬

December

achieved

here

taining chain reaction, and there¬

release

by initiated the controlled

energy." This harness¬
ing of fission marked the begin¬
ning of the Atomic Age. v
r
•

of nuclear

.

On August 16,

1945, the United

dropped the first A-bomb
Hiroshima.
Immediate fatali¬

States
on

78,000 of the Japan¬

ties totalled
ese

are

city's 340,000 people. Others
still dying from the after¬

tests

in

with

math, and future generations will
be affected.' On the day of
Hiroshima's decimation^ one ■> of
top Chicago University ex¬
perts commented, "This is a sad

our

we

scientists. Let us hope
have not placed dynamite in
-us

the hands of children."

~ v

-

-

her

of

War

II

address

by

SAN JUAN

RACEWAY
-

1$

Mr. Eaton before the

Canadian

Club
of
Montreal,
Canada, Feb. 10, 1958.

UNITED WESTERN

•

MINERALS

ljl
\

LITHIUM CORP.

15
20

J.F.ReiIly&Co.,Inc.

.

21
*

:jt

Members Salt Lake City Stock

12

first

test

in

would

it

Yes, But
'

;

'

.

.

(Boxed).

.

"i-;" -y' A

•

'i

*

'

I

-

'

"•

'

.

»

"

n

,

As We See It

Aircraft Radio

Cover

(Editorial)

Pacific Uranium

that

appear

27

Banks and Insurance Stocks—

Coming Events in the Investment Field

8

Dealer-Broker Investment Recommendations

8

American Cement

the United States third.

4, 1957, the

On October

satellite

first

was

world's

that

Granted

From Washington Ahead of

Observations—A. Wilfred May_-_
Our Reporter on

f

■■

What

The

engaged

in

a

Securities Now in Registration

monumental

bombs,

each with

The Market

World

Montreal,

Continued

.

.

35

—

and You—By Wallace

Alaska Oil & Mineral

Streete__—16

great as the

War

bombers

.

General Minerals

42

Salesman's Corner.—

Securities

a. power

II.;

on

Security I Like Best

The

State of Trade and Industry

More

on

the

page

28

are

2

The

mightiest bomb dropped on Ger¬
in

Lithium Corp.

38

Prospective Security Offerings—

■

American bomb¬
ers
are
in the
air around the
clock with lethal loads of hydro¬

many,

31
16

armaments race.

American

United Western Minerals

4

——

V■■■

48

Washington and You

Quinta Corp.

i

The

PREFERRED STOCKS

have specialized in

Reg.
WILLIAM B.
•

.

25

CHRONICLE

Park

U.

Patent Office

S.

DANA COMPANY,
Place,

25

Members New York

BROAD

4, N. Y.
TELETYPE NY 1-5

TELEPHONE HAnover 24300

•

Nashville




-

Boston
-

•

•

Chicago

Schenectady

•

•

Glens Falls

Worcester

as

J

Publishers
'"

WILLIAM DANA SEIBERT,

Publisher

President

;.

Every

vertising

general news and ad¬
and every Monday (com¬

Thursday
issue)

statistical

t

issue

—

market

quotation

corporation news, bank clearings
state and city news, etc.).
Other Offices135
South La Salle St.

records,

Chicago

3, fll.

^

second-class matter Febru¬

Subscription

Rates

United States, U.
Territories and Members

Subscriptions
Pan-American

Dominion

(Telephone STate 2-0613).

of

$65.00 per year
ir.
Canada,
$68.00
per
year

Union,

Other
B&nk

$40.00

and
per

Note—On

the rate

of

8
oi

in

Countries,

Thursday, February 20, 1958

.

•

1942,

25,

Other

J

/,

.

1

■

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

Possessions,
HERBERT D. SEIBERT, Editor &

plete
Albany

9576

Stock Exchange

ST., NEW YORK

-Reentered

V'-V '

.

New York 7, N. Y.

REctor 2-9570 to

Spencer Trask & Co.

Company

COMMERCIAL and

FINANCIAL

v

i
Sabre-Pinon

Copyright 1958 by William B. Dana

■{Published Twice Weekly

For many years we

Dallas

47
—

Securities

Railroad

position of the
US and the USSR

Los Angeles

1

Chicago

the

is

world?

...

Status- Today

Direct Wires td

Philadelphia

31

Governments-.—.——

Securities

Public Utility

inc.
PI., N. Y.

Teletype NY 1-1825 & 1-4844

.

4

_________

Reporter's Report—

Our

Mackie,

HA 2-0270 40 Exchange

18

News About Banks and Bankers

*,

...

&

-8

are

World's

are

44

experts .frankly concede
still five years behind

our

we

the Soviet Union.

Singer, Bean

46

NSTA Notes

recently succeeded in sending
its own little 31-pound Explorer

that

6

the News—Carlisle Bargeron

Mutual Funds

has

aloft,

18

Indications of Current Business Activity.

skies.
States

into the
the United

miles

thousand

Alaska Oil and Mineral

Einzig: "British Employers and Unions Threaten
Conservative Rule"

the

by

Pan American Sulphur

successfully

Soviet Union.
The
sending of the 184-pound
Sputnik by rocket into space not
only signaled the beginning' of
the
age
of cosmic exploration,
but also brought forcefully home
to
ps
the formidable fact that
Russia is far ahead in the field of
missiles.
A month later, Russia
reaffirmed
her
supremacy *by
catapulting
a
second
satellite
weighing almost half a Jtonf a
launched

Teletype: SU 158

45

J__,

probably second, and

with Russia

Exchange PL, Salt Lake City

Regular Featuree

the furthest in
the field of -fusion,

in

advances

39

45

Leadership

gone

has

HEnderson 4-8504

DAvis 8-8786

and
As

1955,

Exchange PL, Jersey City

Dlgby 4-4970

43

1

K. M. Bartlett Suggests Positive Business

countered

Russia

1954,

Exch

s'f

■-

-

VTC',)

(Common &

.

Teletype: 3CY 1160

are released.
nuclei are most

five million times as

to a swift

came

conclusion after the United States
'An

•

Maynar&_-____-— 10

___i

SEC Reports to Congress

energy

today,

Britain

gen*

Atomic Competition

World

for Forecasters

Eisenhower Expects Recession to End in March

Great Britain followed in 1957.

also

day for

ID

11

easily

trustee, we assem¬

of the world,

plaque

STREET, NEW YORK

HYCON

1

re¬

a

fission, by

at

the

Sitrvival—--(jecil Brown:

>

employed for fusion, the
weapon
utilizing fusion is the
hydrogen bomb. While the United
States Ted the world in H-bomb

to

_______

—Roger W. Babson__'

infinitely greater quantities

f atomic

of

Sixteen years

but

J

.

Spokane Stock Exchange

Because hydrogen

battlefronts,

WALL

the A-bomb.

on

versal of the process of

and

Japan's smashing surprise at¬
tack on Pearl Harbor roused the
United States from the compla¬
cent delusion that she could remain

tories.

:

MANUFACTURING

Mounting Unemployment With Professional Salesmen

Check

United

with the

up

ago

to

★

/.

7

0

'

_

__

^ear-^Maicote'?vMcNair«^^

Then came fusion;-which can be

l

up.in

going
smoke

of course, not long

in

from

ments

warfare.

obsoletes!

'

—Merton S.' Allen-J.__.-__—.

lDDSt A' Critical

Hungarians.Otlicr

nations

accomplish¬

al

went

"''

;

Outlook for Textile Stocks—Emil N. Haddard_____

Germans, and

and

materi¬

icent

in

*

.;

plenty of

up

your

,

all hismagnif-

•

1

-

for

mi

Telephone: WHitehall 4-6551 T

in Natural Resource Companies

for InvestiiiR

ase

•T Jules Backman

and

mankind

•

while

#

*

Wages, Productivity and Prices: Post World War II.

despite the fact that the scientists
bal¬ "who had made the greatest coriCributions in our wartime American
listic missiles,can
we
keep laboratories were Italians, Danes,
ons;

has drummed

.

re

conclusion

foolish

this

nuclear weap¬

peace

11

.

Taxes and Feonomic Conditions—Walter

uWe

Solve ;;their friddle.

to

reached

.

do

6

_

G. Abramson^______J.__«______»._^_a.___i_____»_______

;

o f,

j'- •>*

• •

5

;

__

Perifiahe'iit Optimistic Bias: "A New Problem

.which is an • unfortunate
trait, we concluded that
we
held a permanent monopoly
on A-bomb secrets, and that none
of the rest of the world would be

this

e r a

(

American

hour:

in

How,

-

*

•

the Textile-Apparel

Recession—Roy Blough_

a

An Americdn Road to

on] Naga¬

cency,

question

the

new

:

W

,

How to Meet

■

to be the cru-

of

v,

Lapsing back into compla¬

saki.

events,

-

■

99

;

-

''

_

Monetaty-

Federal Insurance Co.—Ira U. Cobleigh

enlighten and ameliorate the Soviet system's harshness. ;
the

:

Industry—Marcus Nadler J

;

weight with their government and possess the likelihood to >

With

1

-

,

Claims Russian intellectuals carry great- §

removal from office.

world

.

,

r

Secretary of State Dulles as a "self-appointed
Soviet-hate-monger" and calls for reversal of his policy or
est

■

3

1

1

»

••

•.. •

,

Conclusions About the Economy and

triaiist depicts
.

'

...

WALL STREET

The Cleveland indus- 4'

statesmen for stalling.

our

'

,

Fiscal Activities—Hon. Robert B. Anderson__

;>

tha Russians" and

with

y%"

There's More to the Economy Than

fears for a world "hell-bent toward . . . bank- ir
suicide."' Mr. Eaton contends "we can and must

workable

a

u.

1

ex¬

presses grave

ruptcy and

New Look at International Relations

a

.

conferences oft scientists rand intellectuals,

of Pugwash

Cover

.

t

American industrialist, and

Prominent Canadian and

I

J|

AKP OOUTAKY I

mmmmm

..Cover

Equity Investment Policy for Today—Armand G. Erpf
Unwarranted Doubts—Robert C. Tyson

Rock Iron Mines, Ltd., and

llCHTiSIl

B. S.

Articlet and Newt,

By CYRUS EATON*
Chairman of the Board, Steep

3

$72.00

per

year

v

-

Reeord — Monthl)
(Foreign Postage extra

account of the fluctuations

exchange,

li

remittances for for

eign subscriptions and advertisements must
be made in

New York ftffida.

INCORPORATED

39 BROADWAY,
WHitehall

Publications

Quotation

year.

m V. FRANKEL & CO.

Teletype NY
Direct

PHILADELPHIA

NEW YORK 6
3-3960

1-4040 & 4041
Wires to

SALT LAKE CITY

4

The Commercial and Financial Chronicle

(832)

information;

on

unlisted

Thursday, February

.

Steel

The

where

arena

by

Carloadings

greatest dollar volume of
transactions in securities occurs.

•

The
advantage
of long-term
digging-in with a minimum of
portfolio activity is interestingly
highlighted by the current annual
-

ine

01

xeport

Boston

sonal

Per-

Prop-

Trust,

erty

a

closed-end investment

com-

Founded
1893 it is

pany.

|

in

oldest

the

in-

vestment trust
in

United

the

States.

■

*
to the shareholders last

expenses

|

-

This low

expense

ratio combined the over-the-counter and the

the current yield from the gross
3-8% income earned directly on

has

also

accom-

al-

most

.

transactions.

At

the

average

same

time, the absence of an absolute
fetish of rigidity is seen in ma]or

changes
term.

the

mi

tion of the

overall

portfolio

Whereas

over

composi-

the long-

decline

oF

consist

stocks.

common

whereas 16 ^

was

then

in

And

railroad

diversifild

of

11% by 10
funds, and a shrinkage

closed-end

0f 12% for the average of 60
openend common stock

funds.*

xhe

comparative
record,
of
course, cannot be so favorable in
ajj periods. But on the long-term

l913, ;-12 ,<? of
the portfolio: consisted of bonds,
and 24% of preferred stocks now
tests
practically
the
entire -holdings it is
<in

of both

principal and income,

evident

that

this

form

of

stock trust fund manageat
a
discount renders the

common

nient

securities, now only 2% is left investor service which is
unique
there; then 20% was m real estate and
highly advantageous,
securities, now merely 0.5% is in
this
category.
Of the common
EXPLORING THE
stocks, industrials accounted for
v

8.3%

of

the

entire portfolio in
two-thirds is so placed.
The fund is managed by five
trustees, Messrs. Edward L. Bigelow, Harvey H. Bundy, Francis C.

1913;

OVER-THE-COUNTER

now

Gray, Henry R. Guild, and Moses
Williams, bankers and lawyers
who

in

accordance

England
trustees

practice,
of

other

of them

some

up.,in

the

Bundy is
nent

law

Chairman

firm.

been:

of
a

the

as

in fact,
brought

business.
Mr.

New

serve

funds;

member

a

Williams is

also

have

trust

with

Mr.

of

a promiBigelow is

Board

and

Mr.

director of the Sec-

ond Bank-State Street Trust Company.

MARKET

r

and

governmental

occasion

on

market.

of ..this

securities

structure

and

markets,

operation

vitally

ment area
detail in a

important investis depicted in massive
newly published vol-

ume, THE OVER-THE-COUNTER

SECURITIES MARKETS, By
WIN FRIEND, Processor of

1RFinance, Wharton School of Finance
and. Commerce; WILLIS J. WINN.
Vice-Dean of the Wharton School;
mer

Director

of

the

institution's

over-the-counter

an

Based

on

a

count of quo¬

tations that appear in investment
services and in private releases of

investment banking firms, the au¬
thors

estimate

as
outstanding a
40,000 to 50,000 govern¬
mental and corporate issues over-

total

the-counter.

Of

these, 3,000 issues
thought to be traded daily, of

are

which

70%

are

ment

and

shares,
corporate

common

10%
preferreds,
10%
bonds, and another 10%

govern¬

J
.The current performance of trade and industry shows little
improvement over that of previous weeks, but then, not too much
was

municipal bonds.

study

gives important

point in

was

signalled

lagging economy when business
better days ahead.
President
Eisenhower himself on Wednesday of last week stated that
im¬
provement in business should start in March and spoke of new
plans to spur the economy, if such aid should be necessary.

/f.'Vv

show

One

our

evidence

some

of

note of encouragement, however,

past week in the,

to

was

be found the

relating to the latest report of the United
building covering the month
for that period at an annual
rate of 1,030,000. This figure exceeded the December level and
was
the highest annual rate, since August,
1957, when such starts
news

States Department of Labor on home
of January. It placed housing starts

totaled 1,056,000.

;

' F","

~•

%

>.

The

January gain extended the general pickup in private
housing starts which began in the latter half of 1957 into the
new year.
Administration economists expect the rise to continue.
Forecasting a business upturn about the middle of the year,
officials have consistently listed housing as one of the favorable
factors indicating the early return of economic recovery.
The
general prediction for the full year 1958 is around 1,100,000 against
1957 private starts of about 990,000.
•

In the steel
some

great growth
erations

in

institutional

counter markets for

seeking offers
large buyers and bids for sell¬
lias importantly stimulated the

shift from the exchanges by insti¬

investors—coupled with
number of block

increasing

transactions.
A

Collective Product

collection

of

this

when

depressed business conditions brought about a
cutting that demoralized the industry, this trade

in

the

unlisted

securities

industry; including extensive de¬
from

thousands

separate

over-the-counter

actions.

Now

available

volume, this information gives

"■

wave

of price-

paper

further

.

am warning their sales forces to expect
increasing
for price concessions and are pointing out that established

prices and terms of sales still hold for all customers.
30's

"The Iron Age" adds that the mills learned their lesson in the
and they know from that experience that price cuts failed

to bring in any new business, that
amount of steel at lower prices.

The mill's

position

with "built-in"

they

were

selling the

same

prices is understandable, being faced
wages, fringes, ex¬

011

inflationary factors, including

pansion, selling and shipping. Tliey have just given their workers
a
5-cents-an-hour wage boost and face another wage increase
July 1 under their three-year contract. Scrap prices have been
011

the rise.
The price

situation is pretty much the

same

for the nation's

steel warehouses, continues "The Iron Age." However, there are
some
isolated instances of price fluctuations in certain areas.
For

instance,

Los

Angeles

warehouse

prices

early

dropped

in

December by as much as $35 per ton, but part of this drop, about
$15 of it, was restored in recent weeks. The December price cut
not stimulate any new

"The Iron Age" states

business.

fhat the storm that struck the eastern

of the country last week-end will strengthen steel scrap
prices throughout the East.
Scrap collections in the East are
virtually at a standstill. The storm hit at a time when prices were
part

already

on

the rise.

of

trans¬
in

-■

pressure

did

made possible by the active
cooperation of hundreds of organi¬

obtained

industry, "The Iron Age" reports this week that
are bringing pressure on the mills to cut
prices,

but they are not getting anywhere, since the pressure on prices is
old story to steel veterans. They recall the fiasco of the 1930's

material

was

zations

users

an

op¬

with

stepped-up demand
for large-scale purchases and sales.
As a result, the broad opportuni¬
ties
offered
by the over-the-

The

steel

Some mills

at¬

markets has been accompanied by

tails

expected at this time, since the month of March

out to be the turning

would

states.

tention to the relative impact on
exchange and unlisted markets of
transactions
by institutions.
In
recent years thinness in exchange

an

Business Failures

.

Relative Use By Institutions
The

ers,

Industry

of

tutional

counter
the

the

publicly held securities to warrant

the

-

in

States, each of which has
outstanding a sufficient amount of

for

For

bodies

United

investing community is now
offered an unprecedentedly cornprehensive picture of the over-

The

and G. WRIGHT HOFFMAN,
for-

'

LfOw Expense Incidence

Statistics

.

uable

.

tion, the net asset value per share
entirely declined 7%, compared with deft common 3iines of 15% in the Dow Jones
stocks and of the highest grade,
Composite
Stock
Average
and
have been extremely minor. Dur12% in the Industrial Average,
inf 1957, typically, the aggregate Adding back both capital gains
dollar
amounts
of
transactions and income
distributions, Boston's
totaled only $231,000 of purchases
asset value during the year fell
and $490,000 of sales, made up of
4c7
compared with- an

six

ex¬

The volume is particularly val¬
in filling' some important
the portfolio before expenses, to gaps in the
industry's "vital sta¬
a net-after-expense return of 4.3%
tistics," as on the scope of the
to the shareholders.
market off the exchanges. Thus it
Good Asset Record, Too
is shown that there are an esti¬
And a highly satisfactory per- mated
80,000 to 90,000 corporations
record

Food Price
Index
Auto Production

markets, volume of

with the shares' present market change markets.
discount from asset value, raises
Vital Industry

formance

consists

May

as

extent of these

y^r added up to only $35,257. activity, pricing and price differ¬
J^1S 1S equivalent to 7 % of the entials, characteristics of transac¬
'"come and 0.27% „ on the assets, tions, positioning practices, the
appreciably lower than the fund problems confronting these mar¬
kets and the relationship between
industry average.

Year-to-year panied these management techchanges in its niques. During
1957, after adding
porfolio,which back the capital gains distribuA. Wilfred

aspects

thoroughly covers such
the character and great

Trade

Commodity Price Index
1

and

The book

^Jln^TING

TECHNIQUE

1953

Production

Retail

State of Trade

far

the

.

TOP

20

Electric Output

appreciation of that broad

nationwide

By A. WILFRED MAY

.

markets

equivalent to that available on the
exchanges.
Furthermore, it will
give to the nonprofessional war¬
ranted

.

one

Meanwhile, there is

a

growing feeling among steel men that
Incoming orders are still slightly

their market has bottomed out.
lower than

the

current

ev¬

steel production

rate, but the downtrend

of the last several months
appears to have leveled off. The mills
Securities Research Unit (Mc- eryone interested in this import¬
are still looking for a
Graw-Hill. 490 pp., 6 x 9; $12.50). ant area of the investment world
pickup in March.
This trade magazine points out that signs are increasing that
transactions of the fund, which The fact - packed and minutely
a thorough understanding of how
steel users' inventories have hit hand-to-mouth levels.
operates without an office or staff documented volume goes far in these markets
A midfunction, the forces
of its own.
western appliance maker
Thus, with the total 'Whig the widespread need for
reportedly is down to about a one-week
influencing their development,
./ inventory. Another steel user gave a 30-ton order to a warehouse
P®id t?
their distinctive
trust company at
~ind
data
arf
b
characteristics,
because his regular mill supplier couldn't give him the prompt
$11,662 and the remuneration re- Arthur Weisenberger & Co.
and their broad

This

of

trust

the

books

company takes care
and all records and

problems.

delivery he needed.
Prompt delivery is a major selling point for the mills. Sales
forces are pressuring for a
buildup of finished steel products at
the mill level for
competitive reasons. Even plate and structural,
which

were on a three-to-six months
delivery basis last summer,
being offered for two-to-three-week delivery today, concludes
"The Iron Age."
are

The

purchase of

In

ROOS

BROS., INC.

the automotive industry United

truck production declined 4%

Reports" stated
Scheduled

on

Friday last.
104,419 cars and

were

the preceding week's

by

States passenger car and
the past week, "Ward's Automotive

totals of 109,028

18,814 trucks
cars

Continued,

ROBERT

S. ATKINS

compared to
I"

19,481 trucks.

and

on

page,36

COMPANY
3 ESTABLISHED )394fe

OF

SAN

FRANCISCO

STATE AND MUNICIPAL BONDS

CORPORATE BONDS
was




negotiated and consummated by

LOCAL STOCKS

Schwabacher&Co.
RHODES-HAVERTY BLDG.

ATLANTA

WALNUT 0316

LONG

1. GEORGIA

DISTANCE 421

\

Number 5718

187

Volume

.

.

.

The Commercial and Financial Chronicle

(833)

herited

There's More to the

Economy
Monetary-Fiscal Activities

with

This
ent.

..Secretary of tlic Treasury

Treasurer Anderson points

Though

.

'

that

out

"the

day

has

of

;

fiscal weapons to

alter

.

of time and recommends

steps which may

we

delay

or

;■'

of

its

are

many

ways

the

the fu-

ture—than

of characterizing

those

of

other

periods. And
just
as
our

would agree on one
characteristic of both

us

outstanding
our

form of

government and the way of life
which we have come to designate
American.

That

is

for

greater

vates

the

worker

earnings
to

moti¬

acquire

"This

was

;■

met

the

test

supreme

are

many

—

This

universal

great

drive

generating

cumulative

the

States

new

and

'•

has

been

wholesale and retail dis¬

our

tributive

industries-

greatly

are

for widening the network of services
United —as is evidenced by the spread

force

growth in the

since

of illus¬

can

be cited—the fact that

incomes

average

fact

in

that

this

$5,000

over

than

more

The drive for expansion in the
Research has become big business,
country American
economy and in Ameri¬ with more money than ever be¬
a year; can
society springs from tens of fore being devoted to
enlarging
60% of millions of sources

the

homes

not

from

owner-occupied; some power
group on top, as in
the startling figures on the owner- authoritarian, systems.
;
ship of such things as automobiles,
- Before, examining
the implica¬
telephones and electric household
tions of our current situation, it
devices.
is helpful to look a little more
This, of course, is only part of
closely
at
the
specific
factors
the material side of the
picture, making for long-term
growth in
Our schools, our recreational faour
economy—now, as in the past.
cilities, our community activities,
It may be noted first of all thai
our churches, the rapid spread in
are

,

placing
while our economic
own
difficul- of ultimate responsibility for both recent
growth has
years
of local centers of
not proceeded at a uniform
ties
seem
rate,
policy and action squarely on the music, art and adult education are
data covering long periods of time
larger, so our individual citizen.
all the result of the continuous
show no tendency on the part of
means
for reFrom the days of the first town striving of individual Americans
solving them meetings right down to the pres- to better the conditions in which the growth rate in this country
to diminish.
The achievement of
sometimes
ent? Americans have eagerly they live.
see m
continually
higher
more
output
and
grasped
the
opportunities
for
Because of their firm rooting in
continually wider sharing of that
elusive
than
managing their own affairs and the past, the forces making for
output over a period of time is
we
like to
working out their own problems growth and creative expression in
not an imagined Utopia.
think was the
presented by a free society. More every sector of American life are
case
in
the than 100
In the United States, it is and
years ago a visitor to the present today
Robert B. Anderson
as
strong as ever
has been a practical goal for prac¬
Past*
United States, Alexis de Tocque- before. We need to
recognize, howThe birthday of Abraham Linville, painted this picture of the ever, that the very vitality of our tical men.
coin, should make us wary of fall- American scene: "No sooner do system
Now as to the long-term growth
and
its
ever-changing
ing into this habit of thought, you set foot on the American character will make for a differ- factors which are strongly present
Faced with events which
many ground,"
he said, "than you are ent momentum in our economy at today.
thought would result in shattering stunned by a kind of tumult. A different times.
The
Recites Growth Factors
important
the Union, Abraham Lincoln had confused clamor is heard on
every thing is to be wise enough and
First among these may be men¬
the supreme faith to look far into
side, and a thousand simultaneous perceptive enough to view our tioned certain
human
resources.
the future and
to speak
of the voices demand the satisfaction of present situation in the proper
Managerial ability, sparking mil¬
American
ideal
as
''the
germ their social wants.
Everything is perspective. It is only when we lions of
separate businesses, large
which has vegetated and still is in motion. Here the
people of one understand the true sources of our and small, shows no evidence of
to grow and expand 'into the uniquarter meet to decide on the productive power that we can take
deterioration; in fact, enterprises
versal liberty^ of mankind.'*
building of a chuch. There a rep- the right kind of actions for pro- are now
planned ahead with more
Abraham Lincoln's vision was resentative
is being elected.
A moting growth in our particular care than ever before.
as

of the economy, and in agriculture
it has increased even more.

the beginning of. our of
supermarkets
and * suburban
history.v Because of decentraliza¬ shopping centers in almost every

" :

ways

^

.....

differ¬

—

our

the American system; no one of
problems as more cru- them, certainly, can tell the whole
casting a longer shadow story. But I believe that most of
over

urge

idea

was,

There

now

own

cial—as

man

for all the world to
the
American.
And,: finally, it

figures

/

believe it is always a temptalion for each generation to think

was new.

It

1 family

actually work against progress."

I

The
new

a

tion
of economic
:V>.'
initiative, our community.;.
trating the changes made in Amer¬ whole
society
derives
benefit
;
Moreover, a number of these
ican life by mass production and
*
from all the skills and knowledge factors
responsible for our pre¬
the widening benefits' which have
and all the ambitions and inven¬
vious growth have stronger po¬
gone with" it.
A wide variety of
tions Inherent in the whole
people. tentials pow .than in the past.

economic system in a short period r,
"avoid wrong or hastily considered v

our

or

American system works.

laissez-faire is over," he stresses the importance of the creative
individual in warning that our economy does not respond in a

predictable ratio to use of a few tools intended to modify the
people's collective judgment and actions. Thus, Secretary
Anderson skeptically views ability of influential
monetary-

■

past.

developed on the work skills and -better education; the
Our •f transportation
and
com¬
bench, in the laboratory,"or in a universal drive to expansion in
munication facilities are increas¬
skyscraper office—could be sure search of rewards permeates every
ing in both extent and efficiency,
of a hearing.
"
business, large and small.

see,

i

the

slant

new

—whether

By HON. ROBERT B. ANDERSON*

1-,

from

a

5

.

fund

our

nical

of

scientific

and

tech¬

knowledge. Private expendi¬

tures for research which amounted
to

$200 million in

creased

1939 have in¬
,

than

$3 billion a
at present—quite aside from

year

the

to

more

research

expenditures

of

the

Federal Government.

Finally,
we
have I a
growing population and

rapidly
drive

a

for

increasing betterment on the
part of every American family.
Our nation is growing at the rate
of

three

million

equivalent

persons

a 'year,

to

adding a city the
Angeles to our con¬
sumer population every 12 months.
Together, the forces of change
working for individual business
promotion and expansion and in¬
dividual family betterment make
up the most powerful drive to¬
size

of

Los

continued

ward

world

been

has

so

and

that

growth

the

This has

known..

the past and with

diffusion

growing
skills

ever

in

.

the
technical

of

of

education, it is so
increasing degree in the present.

in

Studies
These

are

Implications

some

.

>

of the powerful

long-term factors which have kept
our economy on a continuous up¬
grade, despite occasional setbacks
and pauses." What'are their im¬
plications for our present situa¬

greatvenough to see America not little farther, the delegates of a type of economy, and avoid wrong
tion?
:;v-'.■v,The
American- business
com¬
us an
achievement, but as part of county are hastening to consult or hastily considered steps which
First of all, I think we should
munity is more development-con¬
a process—a process
whereby the upon some local improvements, may delay or actually work against
scious than it has ever been; it is remember that we are dealing with
creative energies of free individu- Elsewhere the laborers of a village progress.
'
more
alert to new markets and an. economic
mechanism
highly
als are constantly working to give quit their plows to deliberate upon
to the use of new materials, proc¬ diffused over a wide geographical
new form to the
ideals set down a projected road or public school." Sources of Our Productive Power
esses, and techniques.
area, involving millions of people
by the Founding Fathers. At the All of this, observed de TocqueWhat," then, are the sources of
and producing an annual gross na¬
beginning of our history, George ville, has to be seen to be under- the productive power on the ; Our labor force remains highly
mobile and posseses growing skills tional product of about $435 bil¬
Washington had said that liberty stood; and tie added the shrewd American economy? As I have al¬
and
adaptabilities
to
the
new lion.
and self-government are "finally comment that "This ceaseless agi- ready indicated—and
While all of the monetary
as
visitors
staked
on
the
experiment en- tation . . . may be the greatest to our country began to glimpse techniques and pl'ocO'SStis of ihdus.

trusted to the hands of the Ameri-

people."

can

Not

Lincoln, but
fore

or

that this is

only Abraham
American be-

every

since

has

felt

advantage of democracy."
v

over

'

What Our System Produced

intuitively

Individual responsibility

facing

—-

^

,he

century ago

—

characteristic of the American
which makes it stand

economy

°ut

all others is the diffusion

AJ

„

ing, striving, and above all, chang-

_

u"!n„^T8ueyaubr;

arc

by

enterprise are

encouraged,

the

stock

Our

instruments

to the Government

of capital

are

available

important

goods per
keeps mounting and is and are highly influential, they
continually pushing output per do not within themselves consti¬

worker

worker upward. The rate of out¬ tute the
entire means by* which
put per man hour has increased
the whole
course
of our
very
by more than 3% per year in re¬
Continued on page 27
cent years in the nonfarm sector

" ing and adding to the store of
,

ideas

i2, 1958.-

'e

action. In our fiee society, spa k

fiscal

and

the major try.

so.

problems and getting things started
What has this conviction meant at the grass roots—has kept Amerin the history of our Nation? There icans
working, risking, adventur-

Feb.

a

pleased to

and

accomplishments

the installation of

announce

ln-

a

Bank Stocks

Direct Private Wire
Our
to our

correspondent
of

analysis of the 1957 year-end

outstanding banks is completed and
A copy

Stewart -Eubmks -Meyersom & Co.

will be

sent

free

of

reports

now

a group

available.

upon request.

Members

New York Stock Exchange

2< 16

Pacific Coast Slock Exchange

Montgomery Street, San Francisco 4, Cal.

JVe deal

buy

sell in large

small blocks at

or

net

prices.

E. HUTTON &

jr.

ESTABLISHED

1886

Aletniters New York Stock Exchange
,

NEW

Philadelphia

and other leading

Lexington, Ky*

Boston

Easton. Pa.

Columbus, O-

*




exchanges

Blyth & Co., Inc.

v

CINC1NNA Tl

YOR K

Baltimore

>

or

actively in bank shares and are prepared to

•

Dayton

Portland, Me.

Burlington, Vt.

New York
Ifartforil
Lrniston. Me.

Biddeford, Me.

Boston

Detroit

San Francisco

Philadelphia

•

Pasadena

•

•

Minneapolis

•

•

San Diego

•

Chicago

Pittsburgh
•

•

Spokane

San

•

Jose

Los Angeles

Cleveland

•

Oakland

•

•

Fresno

•

Seattle

Louisville

•

Eureka

•

•

Portland

•

•

Indianapolis

•

Sacramento

Palo Alto

•

Oxnard

Financial Chronicle

The Commercial and
6

<834)

them

Conclusions About the Economy
By DR. MARCUS

NADLER*

j
{
|

In

when

1920

I

work, anybody willing to do a lit¬
tle

bit

more

is de-

than

of

manded

last year

him, will make
his quota in

good time. The
opportunities

dle

great

then.

They,
were
great
during the de¬
pression. And
the opportu¬
nities today
are perhaps
greater than
Marcus

Nadler

before

ever

for

anybody

willing to put his shoulder to the
wheel and do his task to the best
of his

ability.
And, therefore, while I realize

that

1958

any one

work

will

be

a

willing to do

rugged year,
a little more

last year, use

than

little

a

ingenuity than last year, will
indeed, a good year.

more

find 1958,

,.

Last

after I finished an
outlook talk, I raised, as I usually
do, theA question: What conclu¬
sions

year,

be drawn?

can

say:

I had this to

"Now, what conclusion

can

be

drawn from all this?

"(1) 1957 will be a good year,
whether better than 1956 is not as
yet clear. Looking at it from the
overall picture there is a possi¬
bility that the first half of the year
will be better than the second half

probably will exceed for

From

January to about the mid¬

of the
of

economy

summer of 1957 the
the country moved

sidewise.

The pickup in the fall
did not materialize. And-in Sep¬
tember

evident

became

it

business

activity

that

decreasing.

was

of course,

The index of industrial activity as

prepared by the Board of .Gov¬
of the Federal Reserve Sys¬

ity the figure will stand at 137 or
138, and may even be a little lower
than 137.
Since the

months

summer

em¬

ployment began to go down and
the total number of unemployed
rose.

the

In

total

November
number

last

of

of

year

unemployed

a

talk by Dr.

Nadler before the
sponsored by Rob¬
New York City, Jan. 7,

ert

Reis

&

Co.,

vember of 1956.

main
1

more

hand,

~

vonncc

o

"r,

.

-

•

.

another problem, that. of increas¬
^
- ing
unemployment.
They may

ir*-

,

inrf

effect, if not

will continue to increase
because

the

of

in the cost of

in

the

S

—

The

availability

will

increase.

easier

to

(5)

obtain

of

will

It

credit

at

be

lower

Bond prices will

rates of interest.

it will be easier to sell

go up and

bonds in the open market.

too prosperous and sought to put
on
brakes. The Democrats made

Carlisle Bargeron

me

.

Democrats

;
.

..

an issue

of inflation from

a

steady

with a
to be headed

coming up

are

of the

same

'
thT rI'
w

the mam speaker.

_

r„ view of these patently money
«***&* in whioh -the lnhhv-

Unemnlovment

P,u^ ,anf ,n^Ye

that

tPatfe™e ®e"
"?' taee, apd

,

Overtime

payment disappeared

and it became much more difficult

a

every month
moderate decline.
on

forces1 operatf^'^n'therw-'^en
by the summer the decline should
have

to

come

an

end and after

meZ!?tioninfthe '30'S

Rctei?

hi
(9) Keta11 sates itenll tirnhahil
sales in all piobabil-

isy

given way to pessimism
many
people are worrying

"nobody

can

tell

?

t

Year in and year out I

that

howevter

*

point out
what

the

men

The only thing one
analyze all the forces,

do is to
far as we

can

as

them, weigh and

measure

letter

4or

was

Mr

ventlon and

of

cure

cancer

by

granting about $1,200,000 annually
for delivery of antibiotic filtrates
.

j

as

wel1

m

run—

ns

1958
-

agahi

Republican
Senatorial

chairmln of the wins
CongJ-esstenal and.ment

The

campaign

committees,

are also an important seg-

; Production of Lysine (an
essential amino a acid) through

alert0>iriUdrealize'termentati^ may op«i
large new commercial markets
alert

will

realize

that

the

eco-

genator

Schoenoel

have

on

the

security of the people is. ^•-A
IldY.e» 011 Axie. when the price is further reduced.
■ - qther hand, said, in effect, nuts,
large, that the liquid savings in
Sales or animal feed supplements,
the hands of the people are vast, they want all the campaign money
animal and plant health products
that even if we have 5 million un- they can get. This strikes me as
account for about 7%
of sales,
employed, we wull have more than
S f ?5-?c^lcal ^.n?
s
ypo" and the Roerig specialized vitamin
60 million people gainfully em- cr^ *ca
1° take,
division for, about 6% of sales.
ployed at wages higher than ever
,
be^n solicited recently, The balance of 36% of 1957 volume
before. And if we concentrate our, in fact, in behalf of a $100 dinner
came from the International Divithoughts on how to sell to those for Senator Langer of North Da- sion. ■
./.""'A"
r-' 5
employed and stop worrying about kota. The Senator is up for reResearch
what the unemployed will do, we election this year but he is old
The word "metamorphis" was
will do well.
!
and in such bad health that it is
This is my forecast" for 1958.
doubtful he will run again. Yet earlier used deliberately. This is
a word derived from Greek origin.
I could stop right here. But then there is this
ingenious device to
you would have to take my con- raise
campaign funds for him For the P1>ocess
transforming a
elusions on faith. Therefore, I will just as there was six
years ago.
substance as by magic or witchelaborate the reasoning for these It is truly amazing that the Sena- craft, the Americans use a difternonuc

.

j

• j.

X

conclusions.
I

;

X

,

„

,

.

ent word. It is called "research ,
pfizer has steadily developed its
research to the point where it
am°unted to over $9 million in
grocery firms and the like
But 1957 and is
main reason for
six years ago he raised a consider- its success. The recent purchase
able amount of money in this way
of the Morton-Withers Chemical
the lobbyists of the meat packers' Company—a small unit in petrothe big chain grocery firms etc' chemicals—may see further broacinot wanting to argue the point ' eninS of Pfizer's research efforts,

tor

:

stated before I will

would

expect

to

collect

any

hedge on large amount in this way because
two points and they are: (1) As- he is an ultra-liberal
opposed to
suming mo worsening of the inter- the meat packers 1 the' big chain

sell

national political situation has

curred, let's

this

large

the

it,

but

sort

sav,

oc-

at the outbreak
I do not

should

happen

course

ex-

anything

then

of

naturally

of business

activity will
entirely different.
: >
;
second hedge is: Assuming
that we do'not revert to large
scale deficit spending. I do not expect it, but if under political pressures the public debt should be inbe

'

\

The

block?

m.

.

.

„

Healthier Horizons

know the North

as

1

Pakota Senator,^is the only

The average life expectancy has
1° a(i0Pt^the $100 dinner
increased_^about 20 years just
^ure of the two national commit- within the last fifty years. We
Pr?x a^-^ figures he Js a are only beginning to learn fascione
proce-

i

creased, let's sav,

Call.

if the deficit of
eminent should
will

Merrill Lynch, Pierce, Fenner & Beane
70 PINE STREET

NEW YORK 5, N. Y.

Offices in 112 Cities

1

r——

v«--

x

,Ui0vu0v.

.

0

the Republibecause the cans» after their speech-making
pioment people realize the impor- f?ree'
they have killed off
tance of such a deficit, the reacPJ^tnik affair, that is, the
tion will be as follows: "Here we lssa.? °t the Administration negare back at the same old staiid,"
if
°.ur defenses and letting
and the inflationary forced will
Russians get a Sputnik into
lion:

Marketing Department

then the

be

p

P°rter to write. The President has ^thev organic compounds .
ordered the National Committee j ?he next largest domestic dm- •
nQt to
take any of the money sion — Chemical Sales — accounts ;

_

future holds in store for us, and it
is just as well that we don't know

impolitic

t

enlment K®s recognized Pfizer's:
effective research into the pre- -

S aidte poSMe^t'hat ^ed' inasmuch ill/very"" high /Continues 20% of sales. Bulk^/ Vitfl^
5^"is lie is not
for about importflnt. Citric acid
^
minded

they did in 1957.

as

what hapoened

*n J"™

goods and notably automowlU not sel1

i

dence has
and

No matter how pessimistic
may be, a decline of the mag-

A

arranf°F

Jg? Po^ toim&'tbBr^at
bow^ch the Texas oil
owed

(8)
one

hard

The' boom which started in April,
1955 had come to an end. Confi¬
.

2

r *

"ftsubstitute for insulin- whichGov- appears promising.. The Federal
n

"twilight

witnessed

ryaae

J

sKajsssta es;s *sx™.->::::' i

employment." Disposable income
began to go down, and from Sep¬
tember

Continued-from

(7) By the end of the year the publican Leader Joe Martin was
readjustment should be over, ancLthe speaker :
'*
v-A-A'A

pect




,
.

pany pr0sperity as it has in the
past, and the Administration fell
off by one in Washington where ^
"give 'em hell" Truman is to be h Wheth
j
„
.
,
seines

activitv in all probability will

less

J

,

recent money raising dinners

(6) The greatest decline in bust- -

.

mist, heavens no, but I believe
history, will ishow thab our present

of price.rise which I, in my ignor.bank the Republicans, lor example, the ance, believe will always accom
,

credit

.

>

an econo¬

ington trying to chart the minute A:
affairs of more than 170 million '
people. We had a delightful pros- '
perity but these thinkers, study- !
ing their graphs, decided we were ;

services; the increase about Jackson
index, however, and Jefferson.

in '57.

or

hopes they

I do not profess to be

trouble is due to the efforts of
a
so-called thinkers in Wash-

consumer

onset

their lesson.

have learned

few

around talking

io

one

!.

same oppor-

increase

by next Novem¬

will

primarily turiity to go

constant

out of that

ber in which event

^Democrats will
be given the

:

•

*1 it-*.

come

one can ex-

pect that the consumer price index

of the Korean War.

/

in

r

less stable.

or

On the other

'

to

■'

fnl/nc

a recess,

course.

'

Lil^e

a

"'i

_

period of levelling out, business
pared with 2.463 million in No¬ activity will resume its upward

can see

1958.

time Congress

...

1

as com¬

what tomorrow will bring."
■"From

_

11

will0 do

1958

tem, 1947-1949 =r 100, was. 145. in
August. It was 144 in September.. marily in the capital goods, pro-;; given to me for the recent Re¬
goods, machinery and publican dinner—you wonder why
If was 141 in October, 139 in No¬ ducers
vember. The figures for December equipment and durable consum- the sensation about the Houston,
ers' goods.
are not in yet and in all probabil¬
Texas, dinner, at which House Re-

What about the future?

Arthur M. Reis Forum

.

ernors

a

reflects the increase in

-

•

^

.

i

I

good year, and in
some
respects better than 1956.
The gross national product which,
wras

in

reached in December of 1956.

Any decline in busi¬ and wondering what the future
holds in store for us.
ness activity that may take place
in 1957 will be of minor impor¬
j This is the record of last year.
1957

-

quite pronounced.
' v'
A>-*AA-can d°V this,
(4) The inflationary forces will and/:in tjie
recede. In all probability the in- next1 f e w
dex of wholesale prices will re- weeks*the;

of the year:

tance."

•.•

already keen actually, in
and competition will increase even order that the
more
with a squeeze on profits [Republicans

was

to obtain what is called

■

•

(3) Competition is

1956.

amounted to 3.188 million

Recalls Last Year's Forecast

industries

better than in 1957.

the first time in history $200 bil¬
lion.
But the peak of the boom
was

were

wages

1957 than in

By CARLISLE BARGERON

rA soft
the

that

are

•

higher in
Disposable in¬
come
was
also higher.
And the
total volume of retail trade during

this prices and

to

came

country with four dollars I soon
realized that anybody willing to

of the News

A-';

lower level than dur- .'£•

on a

chances

good

then resume its upward course. The noted professor and banking consultant takes cognizance of the reasons which in the
long run augur well for the textile and apparel industry, and
concludes present downward readjustment in no way alters
the attractive long range economic outlook.

•

on

Ahead

reached

(

(1) Looking at the economy as
whole, business activity in 1958

the

and that the economy's decline should halt by
Summer. At that time he expects business to level out and

than last year,

I

From

Republican..^, §Er
*2™ j ? ' ourselves. -The people
ing 1957.
*
"
•''pretty much back in/Washington seemed to have relaxed on that
(2) The soft goods industries in
,sPrfe o|: siipging the score.
«
all probability will do well}and praises of Lincoln. Every year this
However, the Republicans have

whole—will do better in 1958

economy as a

=SI

i-

..

Conclusions about 1958

a

Dr. Nadler's analysis of weak, strong and stabilizing forces
at work indicate to him that the soft goods industries—

the

'

As regards 1958 I have

will be

contrary to

'

these conclusions:

and Finance, New York University
Consulting Economist to The Hanover Bank

conclu¬

certain

■

V I will make only two hedges, to
which I shall come back to shortly.

Professor of Banking

•

reach

and

sions.'.

Textile-Appuel Industry

And the

,

Thursday, February 20,
1955

...

m

course

of

business

was

different

•

Continued
^onunuea

on

vanr

20

page dO

n!wr'
thing

n-

past

ments lie ahead.

Pfizer
this

-

great,

experience,

stock

trend.

should

is

develop-

near-term,
beneficiary 01

Even
a

1958, earnings
further to
Looking ahead to

For

expand

$4.75 a share.
1960, sales could increase to

er a11' >va have some- $270 million and produce.earnings

sailing

around

out

in

the

of

$5.00-$5.75

a

share.

>

...

187- Number 5718

Volume

.

...

.

.

The Commercial and Financial Chronicle

.

(835)

the

Federal Insurance Co.
By DR. IRA U. COBLEIGII
'

' Enterprise Economist

\

,r

•

of the operations of this highly successful

A swift summary

;

plus

;U underwriter,

.'%</

;•

projection of its broadened earning

a

power

" '

/

"/■;

myriad
calendars
distrib¬
Well, "admitted" assets, in
of
Federal,
stood at
6/30/57 at $172,091,000. They were
not idle assets, however. 54% was
'(■. in cash, government and munici¬
pal bonds; 7% in general market
bonds and preferred stock; 33%'
uted!)
the

•

i; in

through its recent acquisition of Colonial Life Insurance Co.
ii't*■'. * i'1.'-

•••

v'V

Co.

Insurance

309,000

existence by
stock at $100 .,a

capital

selling

favorable

have

a

per

share;.

.

V;

-This

total of $4,643,000

adjusted the
net. income, _equalj/to
$1 72 on

been

2,700,000.shales then
the. fortunes outstanding As tor dividends, it

So

(of if this
is pany

/well

has

corn-

and
have

affairs

so

of

Son

&

that

•

sh ares

$32,000.

tions,
U. Cobleigh
,

i-

'■

mcome. in

recent;

ife

romance

new

arniinition

Colonial

of

is

Life

insurance Co. This is not a large
organization,
iIts assets

as

life companies go.
at

12/31/1956 stood

at

$72,500,000 and it had but $426,-

700,000 of life insurance in force,
Founded

jlas

in

1897, its growth rate
less dynamic than a

keen

-jvi^usijriess: under the aegis ofFed-:

Accordingly, Federal Insurance
Co., On an indicated 90c dividend
basis
yielding 2.25% makes 'no
appeal to the buyer for income."

worth, at current quota-

■i.

quite; low.cash divi-

investment

*° c01"e?*

8 0 0

Federal

at

Considerable

added to the Federal picture by-

In other words, myest- number of others, and presently
ments assure the return to share-.
,ioes business only in Puerto
holders; wnile underwriting
prpi- Ric0 Connecticut, New York, New
its are used to build up- surplus
Jer30y Pennsylvania and Mary(and ineidently to add to the land. ;Xhc capacity, however, for
funds that create investment in-,, expansion of this life insurance

each y original
$100 share has
o

in miscellaneous.1

and 6%

years.

the' manage-

;

the custom

dents, averaging only about 72.%

mentoi Chubb
-

been

j°.?ay

its

been

handled under

Ira

'

,

($1.23

combined to

started its corporate
share.

stocks (including bank

common

stocks)

,■
/<!.-.

Federal

1901

In

case

efat is exciting,
//First of all, it should be

pos-

sible to license Colonial Life to do

business

in

many

more

states.

This is quite But to growth-minded investors Secondly, withFederal's re/ and /those whose >tax brackets> sohrcfes, an aggressive'expansion

;/}.///£ ,TecoTd. /

^

Federal started out/aaa Special- : create almost a•.disdain .for:

divi-. program is possible, including
ociean*.:^
derid income, Federal's ipeprd of)substantial outlays for advertising;
tljen >addeid^-'/fire/and .PP1®*1 i prop- growth!,/, its stead^ \ build-up ^
etc. Thirdly,
ist ' in'

.

,

-lines,

erty

advancing,-, with •.•.the-', surplus, and/its

•

stock .-dividends

industry, into over the years, present a considerautomobile
coverage
and -later, able allurement.
•
u
aviation insurance. In 1953 it took
Uniaue in corporation balance
over United States Guarantee Co.,
h
t
is' the insurance company

rise

of

motor

the

,

-

stP^m'ent

leadingPompany in the under/-,
writing of

a

So

today Federal

don-t

cjuite complete multiple—line

ci

company

property

are

some

admit-perhaps

assets thev

good

the stent's fuce

AVliting almost all type,

of,.: fire,

there

,nimiftfl

nnnliootinn

tVio

wm;
sfter
mrl

you've signed the application, and

casualty
(the
fastest growing segment of the
insurance industry).
J
and

immediately available. ^

Then, of course, the revejrse is
Old policyholders of
[Colo¬

true.
nial

'will

house

of

Federal

The
The

toughest

±ne longnest
thing about building up a lite insursnco compsny* is the developmont

ment

nf

of

reaerai.

o

a

^Vliomib

calpc

-fflPPP

dynamic sales force,

for

marvellous

a

Federal's!

eral
at
this
time.
Also,
since?
casualty
companies
are
heavy
bondholders, the rise in the bond

market since last October has had.
favorable

a

There

own

Another

point to note about this
is investment management.
Federal's •
portfolio
handling
through the years has been most
excellent; and the same talents
applied to the $67 million Colonial
now has invested in a portfolio of
bonds, mortgages and real estate,
might add substantially to overall
profitability.
■
<The
outstanding
features
of
Federal, in comparison with other
traditional companies in fire and
casualty, include the delivery of
an
underwriting profit in both
1956
and
1957,
(very
tryingyears);
and
the
considerably
lower loss ratios
(than its com¬
petitors) which it has been able to
document year after year in its
various risk categories.
Further,
fidelity and surety lines (tradi¬
tionally more profitable than many
casualty risks) comprised a rather
high percentage (15%) of Fed¬
eral's earned premiums in 195G.
There's another point to keep in
mind about fire and casualty busi¬

merger

A

experi¬
loss
claims
and higher rates

period of
-•
heavy

and

results

in

new

poor

in

following years. So that one
bad year may set the stage for a
dramatic

profits

a

rise

few

in

later

of course, dozens of
casualty companies to

Federal
an

Insurance has that, plus

impressive past

future.

and

Mere

breadth

of

operations

1956

and

for

1957

This

is

in fire
and
casualty
underwriting. >In
fact, the last two years have been
pretty miserable ones for com¬
panies in these lines. Underwrit¬
ing profits for most stock companies declined or disappeared in
warranty

annonv

Over-the-Counter

Market

and, at
this writing, is priced at 40.

Donal Jaffey Opens
ROCHESTER, N. Y.—Donald H>
Jaffey

is

business

conducting
from

a

offices

at

due

to

rising

formed

Securities
with

Inc.

offices

at

inflated

M. H.

MINNEAPOLIS,

Dated March 1, W5S
'

."

Interest

Co., Northwestern Bank Build->
ing,
members
of
the
Midwest
Stock Exchange.
;
\

Joins Paine,

*

with
this

run

out, and are replaced

higher premium ones.
•

certain

theory,-

On

investors

favor casualty companies in gen¬

Corporation
Due

/

payable each March 1 and September 1

and property damage rates
10%, in most of the states except

York.

•\ Whereas,
above

due

recited,

casualty
in

Further

-•-.

increases

Price 98'/2% and Accrued Interest

year.

to

•,

conditions

fire
and
have ..turned

many

companies

underwriting losses, or sharply
profits, in the past two

reduced

Federal

•years

has

shown

industry
stock

-

wide

the

,

all

for

average

Copies of the Prospectus may be obtained in any Slate from only such of
undersigned as may legally offer these Debentures in compliance
with the securities laws of such State,

its

quality by delivering an under¬
writing profit for 5 years (195256) averaging 11.3% against an
companies of only 4.7%.

"

Which

brings
us
up to
the
anatomy of earnings in a fire or
casualty company.
Ideally such
an
enterprise should earn money
each

from two

year

sources:

underwriting profits
income

(1)

premium
underwriting ex^-

minus

Federal, this is how

the combination works out.
First,
-We'll take a
good underwriting
Year—1954. In that year Federal

showed

(alter

adjusted

income

underwriting

$3,500,000,

income
$1.00 per share.

gether, and

you

net income 0f
per
•

taxes)

profit

DILLON, READ & CO. INC. THE FIRST BOSTON

of

of

BLYTH&CO.,INC.

GLORE, FORGAN & CO.
KIDDER, PEABODY & CO.

$1,334,000

investment

EASTMAN DILLON, UNION SECURITIES & CO.

GOLDMAN, SACHS & CO.

Put these to¬

& BEANE

year.

profit
(49c

per

income

•

LEHMAN BROTHERS

SALOMON BROS. & HUTZLER

SMITH, BARNEY & CO.

STONE & WEBSTER SECURITIES CORPORATION

$6,192,000 and $2.29

WHITE, WELD & CO.
a

HARRIMAN RIPLEY & CO.
Incorporated

LAZARD FRERES & CO.

MERRILL LYNCH, PIERCE, FENNER

share.

^^vrhing

DREXEL & CO.

$2,692,000,

arrive at adjusted

Now look at 1956,

alty insurance

CORPORATION KVHN,LOEB & CO.

an

$1.29 per share; and,

or

investment
or

MORGAN STANLEY & CO.

—-

penses, costs, and loss claims paid
and (2) income from investments.
In the case of

poor

casu¬

Adjusted

un-

dropped

to

share);
rose




to

but
$3,/

February 19, 1958.

'

-j

MINNEAPOLIS, Minn.—John B.
Kelley
is
now
affiliated with
Paine, Webber, Jackson & Curtis*
Pillsbury Building.
•
; -

20%

anticipated this

''

Webber

in: 195^,
aptpTiabiyty/rates^wei-e dhcrea^d

New

Bishop

&

necessity. /Accordingly,

are

Wall

Minn.—David

Stewart is now with M. H.

Year 4% Debentures Due 1979
Twenty-One

'

been
-

Bishop Adds

$150,000,000

:

80

(Special to The Financial Chronicle)

policies

General Motors Acceptance

?

has

(Special to The Financial Chronicle)

property values. In

of court-awards for bodily injury
inVirtptor acHdehts,' alid: damage
repair costs, had been rising so
irapidly that higher automobile
premiums
became • an / absolute

State

Street, New York City to engage
in a securities business.
/

re¬

automobile insurance, the amount

39

Form York Securities
York

offer.to sell nor a. solicitation of an offer to binj any of these Debentures.
offer is made only by the Prospectus,

;v,;

-

securities

Street.

The

placement costs, and a lag- in in¬
creasing coverage to correspond
with

cement is neither an

success

bright

a

The stock is traded in the

coverage plus life insurance

no

share

per

pick
from—some
small,
some
large; some with good under¬
writing records, others with poor
ones.
When it comes to investing
in this area, over the long run
there is no substitute for quality*

old

as

on

are,

and

underwriting

years

effect

book value.

fire

ence

branch offices all over the United
States,.thousands of life insurance

list

prospect

ness.

splendid

the

make

wares.

sales

of

They're

i

■

Co.

Insurance

•

n

one,

organization of Federal, inclucling brokers, agents and company

because

sales are almost "ready made" to
assets—they're old and satisfied clients of the

assets.

fidehty^iid surety pro- ^ just/ plain
?
rr
"admitted"-.assets.v(We, miay/asof Colonial Life

t!-r ♦V
control

chased

is

it^

mf

Here, in the Federal organization,
Colonial Life has a magnificent

>7

8

The Commercial and

(836)

Financial Chronicle

Quotation Bureau Averages, both as to
performance over a 19-year period —
Quotation Bureau, Inc., 46 Front Street, New York

used in the National

yield

National

Dealer- Broker Investment

-•

4, JM. Y.

.

Recommendations & Literature
pleased
send interested parties the following literature:

at

Fair

the

Article

—

^Airlines—Analysis of outlook—John H. Lewis & Co.; 63 Wall 77.7:7*
^trrvpt-'Npw

'

T7T V

■

■

AktiMlMaiiM

Ynrk- *v

*

N

Y-

..-v.A

•

a-ji
77.^
/; 7./7 ';7

■'+

*•'

P'

'

Vf«

itri-fVi

—

rvartinillQr

f***

t.O

Industry—Analysis with particular; reference to
7> Aluminum €o. ot America,- Reynolds Metals Co.,. IJ, S.^FoiI
Co.,and KaiserAluminum
Chemical—Sutro Bros. & Co:,
Aluminum

,v7l20

Broadway, New York

-

.

;

Thursday, February 20,

on

U.

S.

advertiser
has just become a
His daughter Beryl

department,
grandfather,

■

.

;7'' 7

.

long-time member

"Chronicle's"

the

of

VV

7:

'■'!

-

-

*

■

.

_

'

^

_

'

t

V 777... 7'

•

•'''

:early Wednes-'
..day. ..morning
; Feb, ,19.; Both

?

momma

|;7child,

vCorporation, .120- Broadway 4 New ;York,

a,

-N.

•

Y.4;

;

•;

fea;re'Mn

„'

Vy \
7.

35)—Analysis ol fund investment in missile
field-r-Atomic Development Securities Co., Inc;, 1033 Thirtieths

"Street, N. W., Washington• 7,'D. C.7;7>7:7;;
Automatic

Controls—Analysis

*

7 tae

with

.

.

-Hal

7 Wall Street, New York 5,. N. Y7 Also in the

particular

reference

Company, 207 East Michigan Street, Milwaukee 2, Wis.

:

on

same

circular

'

&
a

Stocks—Earnings comparison of 21 leading bank stocks
New York—Laird, Bissell & Meeds, 120 Broadway,
New York 5, N. Y.
outside

'

;

Federated Departments Stores, Inc.

*

bulletin

Franklin

on

Power

"Chronicle"

Stores Corporation.

Company—Analysis—Coffin

& Burr, Incor¬

Ketclium

&

Co.—Memorandum—Dean Witter

&

Co., 14 Wail

Street, New York 5, N. Y.

able is current Foreign Letter.

Maine

Canadian

Agriculture—Analysis in current issue of "Monthly
Review"—Bank of Nova
Scotia, Economics Department,
Toronto, Canada.

Public

Service

Co.—Review—A.

B.

&

in

5, N. Y.

Tobacco
Indian

and

&

Also available is
on

the

Co.,
a

G.

Becker

Mountain Fuel Supply Co.—Memorandum—Boettcher
pany,

on

&

Bank

N.Y.

Outlook for Electronics.

Market—Bulletin—Harkisondass Luklimidass, 5
Hamam Street, Bombay, India.
7/7'7'7,7-.

Brush, Slocumb Go.

new

five-year economic

—

7

Parker

Also

4

/

:

7

•

and

metropolitan

areas

on

of

each

the

of the

351

/

cities, towns

Mr.

First

Ilamiii'in

Jose

Petroleum

COMING

EVENTS

&

In

Feb. 21, 1958

Suburban

Hospital Association—Report—B. C.
and Company,
Security Building, West Bend, Wis.

.

Zenith

Radio

Corporation—Analysis—Joseph

Broadway, New York 6, N. Y.

annual

Faroll & Co., 29
Feb. 21,

Commonwealth—Massachu¬

—

Review

—

Co., 120 Broadway, New York 5, N. Y.
the current "Pocket Guide for

Harris, Upham &
Also available is

Today's Investor" containing

Feb. 27, 1958

—

Averages and the 35 over-the-counter industrial stocks




(Detroit, Mich.)

Detroit Stock Exchange annual
■7' dinner at the Statler Hilton. :

7

NSTA

Notes

Feb.

(Philadelphia, Pa.)
Association

28, 1958

Investment Traders

1958—Discussion—Sutro Bros. & Co., 625 Madison

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

Jones

Club

Bond

and

meeting

of

Avenue, New York 22, N. Y.

<

Wis.)
annual
election at the

1958 (Milwaukee,

Milwaukee

various selected lists of securities.

Over-the-Counter Index

Lakeside

Pfister Hotel.

1958: A Year of Opportunities

Outlook for

(Houston, Tex.)
of Houston

Field Day at

Country Club.

16, Mass.—on request.

-

Field

Stock & Bond Club

Zeigler

setts Department of Commerce, 334 Boylston
Street, Boston

<

Investment

Inc.—Report—Troster, Singer & Co., 74

Trinity Place, New York 6, N. Y.
West

formerly with

was

California Company in the

trading department.

a list of companies which
public works programs.
7
i

Corp.—Memorandum—Kidder, Peabody

of

Hennig

Co., 17 Wall Street, New York 5, N. Y.

Yamaichi Securities

Company of New York, Inc., Ill Broadway, New York 7,
New York.
V"'
V '
47 ,

Massachusetts—Monographs

benefit from

465 California Street,
the New York and
Coast Stock Exchanges.

Inc.,

Pacific

of Propellants.. Also available is
should

San

—

Co:

members

Co., 1 Wall

Corp.—Analysis in current issue of "Gleanings"

Beacon—Nomura

program*

Current information

77--.7V.>

:

FRANCISCO,
Calif. A. Hennig has become
affiliated with Brush, Slocumb &
Richard

—Francis I. du Pont &
Co., 1 Wall Street, New York 5, N. Y.
In the same issue are lists of "Tax Free" Stocks
and Makers

Shipping trade,

and of the

to

ya,

(Special to The Financial Chronicle)

and Meadow Brook National Bank of Nassau
County,

Pacific Lighting

Japanese Electrical Machinery Manufacturing Industry—Analy¬

Japanese Stocks

business in this

SAN

Street, New York 5, N. Y.

Inflation, Deflation and Investor Psychology—Discussion—•
Hirsch & Co., 25 Broad Street, New York 4, N. Y.

Securities Co., Ltd., 61 Broadway, New York
6, N. Y.
in the same issue are discussions of
Japanese

Hal

Richard Hennig With

& Com¬

Company of Chicago—Circular—

Otis Elevator Co.—Memorandum—A. M. Kidder &

Stock

sis in current issue of Nomura's Investors

both

Co.

Security Adjustment Corporation, 16 Court Street, Brooklyn
1, N. Y. Also available are circulars on Franklin National

New

Street,

to press.

say,,

change the familiar
Hal"
to "How ya,
Grandpa," on his subsequent visits.
disposed

828 Seventeenth Street, Denver 2, Colo.

Old Republic Life Insurance

R. J. Reynolds

Wall

36

bulletin

-

securities

the

"How

Manufacturing—Bulletin—J. R, Williston & Co., 115
Broadway, New York 6, N. Y.

Industry—Comparative figuresSmith, Barney & Co., 20 Broad Street, New York 5, N. Y.
York

to

4 and his wife Lyla are just about
the proudest residents of Basking
Ridge, N. J. And his many friends

Mcnasco

Pharmaceutical

Convertibles—Bulletin—Bache

ex-

Incorporated, GO Broadway, New York 4, N. Y.

Natural Gas Investments—Analysis—C. M. Oliver
Company Limited, 821 West Hastings Street, Vancouver I,
C., Canada.

Chemical

went

Needless

Canadian
&

7rL a W t 0 IV4
r:y:. Pierce, for-

country and Canada may well be

porated, 60 State Street, Boston 9, Mass.

—

Murphy

-

Consolidated Mines

Philadelphia

Winter

SECURITY TRADERS ASSOCIATION OF
NEW YORK
Reservations for the Security Traders
Association of New
York 22nd birthday
party, to be held April 25 at the Waldorf
Astoria, should be made with Raymond C.
Forbes, Shearson,
Hammill & Co. Tariff is $15
per person.
Those desiring hotel reservations
should contact Vincent M.
Gowan, Goldman, Sachs & Co.

Dinner

•»

annual Mid. Bellevue-

at

Stratford Hotel.

York City)
Dealers As¬
annual dinner at

March 7, 1958 (New
.

New York Security
sociation 32nd
the

Waldorf-Astoria.

April 11, 1958 (Toronto,
Toronto Bond Traders

Here Is A

Special Opportunity for You:

"FOR SALE"

Bank &

April

Set of

Quotation Records From 1933

Association

25, 1958 (New

to 1955

or

ner

St.

>

Edwin L. Beck
;

Chronicle, 25 Park

meeting

York, N.

at the

Y.)

of

Waldorf-Astoria.

May 1 & 2, 1958 (St.

June 9-12, 1958

PL N. Y. 7

,

.•:

7

Louis,

Mo.)

Dealers
Spring Party.

Municipal

Louis

Group annual

c/o

annual

Shamrock Hotel.

Security Traders Association
New York Annual Spring Din¬

Available in New York
City—-Write

Phone REctor 2-9570

King

April 23-25, 1958 (Houston, Tex.)
Texas Group Investment Bank¬
at the

Beautifully Bound

Canada)
Associa¬

at the

tion annual dinner
Edward Hotel.

ers

(Canada)

Investment Dealers' Association
of Canada annual convention *»
Manoir Richelieu;, Murray Bw#

Quebec.:

:

<

i7:-.ther,;7Williaiiro:

.

pected. V is literally: "walking on
air." The arrival of baby Joeelyn
was most timely, the blessed event
having occurred on the day the

;

Company—Bulletin—Georgeson
Co., 52 Wall Street, New York 5, N. Y. Also available is

Interstate

View
Monthly Investment letter — Burnham and
Company, 15 Broad Street, New York 5, N. Y. Also avail¬

tluv;

proud fa-

7merly of Boston, as is to be

Co.;' 72
.

.

4"V '7*f4"' 7'

7.; '7:7 7-v-_:7'*

vr

Goldfield

Bank

Burnliam

"

BeryIlium

report

Stocks—Analysis of 1957 year end reports of a group
outstanding banks—Blyth & Co., Inc., 14 Wall Street,
New York 5, N. Y.
v

of

;

Combustion Engineering.

Consolidated Foods Corporation—Report—Thomson & McKin: non, 11 Wall Street, New York 5, N. Y.
Also available is a

Bank

:

on

Wall Street, New York 5, N. Y.

7

to

"

r

data

; are

Brpsli

,7 Johnson Service Company and Ranco, Inc.—The Milwaukee

■

,v.ss7p,ink7'and

7777

.^Atomic Letter {No.

aid

we're

f h happy to note,

77 Atomic, Energy 1B58—-Reviews-National Securities & Research r
v

be

..Lyla Pierce

-«7"|

.

'

011.11 c e

named Joeelyn

I

rAtomi^ Btierffy-r-Review^-Harris,-Upham & Co.; 120 Broadway, y
New York
:
• 777ir
:::

v

t

to

pound

|,v^i:rl7to

7-r:• 7-,7.'v:-7'

:

an-eight

17 7* f

P

~

birth

-gave

l \~

7
77 '
* Aeiequip Corporation—Analysis—Haydeiv Stone & Co., r25 v~^
77 Broad Street, New York 4, N. Y. 7:VC 47:
r: v7:?v 7!
.

1955

Murphy Now a
Proud Grandfather

Hal Murphy,

.

Y.

participation in
% "International Trade Fair—In February issue of "American ;
Investor":— American Stock Exchange, 86 Trinity Place,r.
^ • • New- York 6, N. Y,-^15c per copy; $1.00 per year. Also in v.
7;; -'the. same issue.are articles r 011 'Stop & - Shop, Inc., Brown:
Forman; and Development Corporation of America, 7 7747
Sam

.

•

Study—G. H. Walker & Co., 1 Wall Street, New York 5, N.

Uncle

It is understood that the firms mentioned will be
to

'

.

Hal

market

Securities Outlook for the Investor and Business Executive—
-

•

and

.

\ ;

Number 5713

187

Volume

.

.

.

The Commercial and Financial Chronicle

"

«

■s

hi

a

(837)

The

countries

affected

be

would

7"':-,X forced to reduce buying our goods,
thus increasing unemployment in
our
exporting industries.
More

"*'/•

B>- DR. ROY BLOUGH*

I

would favor .heavy public expenditurcs .for- the? purpose ;:of
pulling us out, bht our job now
is to prevent us from going .into

9

income-tax, either in the form of
-.simple Vpercentage^decrease

a

the.board

across

or

with not

than two brackets;

It

more

should

be

Though

is not

howevtty helietes it

necessary as yet to

spark the

taken

econ¬

spending

anti-slump

as an

measure

..

First, it."seems to m'e that the
hh inkeri

chmilH

,npA.vf

The

the

m

war

re

caii:

he

lied

t

¬

foh

on

culation

.

declined,

(

heavily

panded
b

o

t h

goods

ex¬

o

goods

f

Roy Blouffh

"

has

purchases--and
extended

been
sumer,

~

into

-

even

other

has

There

areas,

con-

-

been

a

period; of accuDHilatiom of
consumers*;, durables, I T h e -in-

long

vestment

in

boom

which

costs

have soared far above other price

has

increases

produced
excess
sectors. Finally,
while it may be mythology;• it is
not necessarily irrelevant that de¬
pressions have followed previous
great wars. In short, although this
recession
may
turn out to be
capacity in

nations.
me

These

preventing

recession

is

and

why

it

no

should

that it will.

particular

and

one.

It would be

a

Public

,ent iinet

long or
important

should

and

would
-

serious

be

into effect.

thus

be

Spending

a

,'

:

;

NEW

deliberate

a

ISSUE

private sector

'

'

'

for the purpose of

New programs can be

not

-

rather

seems

of

Dated

We all

on

Affects

/'

Our

has

upturn

time-

Congress
journment. / - It
reluctance

approaches

is

with

for

borrowing. The /debt ^ limit
should be made-high enough to

ad-

great

restore ample room* for maneuver
by the Treasury since1 otherwise

that^T

its

of

the

irreversibility.

Once taxes
cut it seems that all the king's
horses cannot get them up again

"hnrt°nf\vnv

nr

other

woSd

te

to

meet

c

is

as a

measures

recession
'

,

n

.

Finally,

tacreased

be

,

:

in

was

1949

our concern

temporarily dissipated, I think
should give a great deal more

most effective stabili¬

attention and study to the problem
of inflation.
Inflationary booms

zation devices and we must learn

certainly accentuate and .probably

situation.
one

to
1
a

of

use

Yet

our

them if

tax

ar7to'^intehv'

we

«5tnhlo peonomv
otahte economy.

.

,

.

.

*

For

greatest

simplicity,

effectiveness

-unsolved:

no

....

..

and

tax cut that is
the individual

any

made should be

on
.

.

..

.

ln"
flation f appears to be

*

.

economic

-

circumstaxices to be construed

as

recessions,

.

.

as an

offering of these

Prospectus,

'

t

-

'

*

-

February 15, 1978

principal, interest and sinking fund retirements by

/ * ■

>•1-

that

the

not

Union

Marxist

arguments

has

position that

bound to

been

occur

depression

a

in the United
our

of

our

legally offer these securities under the laws of such State.

Shields & Compan y

iialsey, stuaut & Co. inc.

white,wkli>&Co.

savard&iiart

Eastman Dillon, Union securities &

HORNBLO WEU & WEEKS

Co.:

iiemphill, noyes

LADENBURG.THALMANN & Co.

;

; SALOMON BROS. & IIUTZLER

,

TUCKER, ANTHONY & r. L. DAY

economic

'

Statement by Dr. Blough before Con-

jO'essitmal Joint Committee. Washington,
C., feb. 10, 1958.




February 19, 1958.

.

Co.

LEli IIIGGINSON CORPORATION

present

recession with its stories of bread¬
lines is certain to be a severe blow

prestige

may

over¬

long
used
in its propa¬

The result of

State from

the

economic; field the

Soviet

any

only such of the underwriters, including the undersigned, as

severe

a

prestige in the fields
technology, industrial
development and military capa¬

bilities which has

be obtained in

.'

/

yet an
aim

is

stability with growth
means avoiding infla-

and that
tions as well

.

as

problem,: Our

Price 96.829% and Accrued Interest

than

.

recession

about inflation

1953.

or

*

'

the midst of

Prestige

serious

more

either

Tor at-

could ; be

r

..

m

expendi¬
>

science,

In

,

we

inflationary
changes are

an

the

nullified.

emereencv

when

again

of fiscal

use

tacking

are

Due

may

many

well; for example,

to resort to expensive substitutes

the

by

suggest a tax
reduction for this purpose because

•'

Copies of the Prospectus

and

anti-

it has forced the Executive Branch

economy
declines
if there has been

or

considerable

no

as

(Canada)

depression, would be. a
for this country.
recall the damage-that the

There can be no doubt
two sputniks- have dealt
blow to our

D.

device.' It

an

other defects

the

case

The City of Montreal

matter

tax

in

-

is difficult to feel any
the direction or

considerably

the

of

use

measures as

promptly by reduced withholding

$13,500,000

Guaranteed unconditionally as to

outlook toward the United States.
In these respects a recession is

to

with the

expenditure
recession

February 15, 1958

1949 recession did to the econo¬
mies of other countries and their

States.

sistent

be

tax

a

effected

4

a

serious

ganda

such
be

dim.

point is ' thatthe
foreign relations aspect of a deep
or
long continued recession- let

was

could

second

•

come.

contemplation in Conprove to be insufficient. A rigid debt limit is incon-

about

Recession

of

We should

that

so

reduction

the

which
•««*

may

experience,*

past

tures in Washington; "

it

income taxes.

preparing

limit

under

gress

temporary reduction of individ-

Ual

that

course

debt

Sinking :4%% Debentures, 1958 Issue
Fund

shift again to inflation.

stability of thinking

alone

•

is

reces-

in the
-

now

basis

assurance

My

the

meet

of

means

increase

sion, it should be in the form of
a

This

.

to
-

-

Montreal Transportation Commission

being considered
by the Congress. If so, recession

however, it

to

necessary

found
-

public the fundamentals of fiscal
P0^cy should not be overlooked,

future in the

near

the amounts will increase far be¬

soon

he

is

—

on

.

The out¬

expenditures for defense. Perhaps

the

relaxation

monetary
-

educational possibilities of using
the tax Teturn forr teaching the

expanding demand

an.

In government,
however, we face
substantial increases in Federal

On

My fifth point is that if further
governmental action aside from

,

•

initiated in the

may

expenditures. It is economic waste
to. spend funds on defense that
arP not needed for defense.

,

major expansions to be

those

expendi-

labeled
as >;"temporary
anti-recession tax reduction," and

slump,

a

reason

.

for goods and: services.

yond

differ-

of

defense
needs,; not ^ economic should^ be subtracted -after the
needs, «£h6tild- determine defense* final'.'computation :,of tax. The

much further

.

.

out

economy

securities for sale, or as an offer to buy, any of such securities. The offering is made only by the

renewed accumulation rests on the

for

raised for the;purpose of pulling .clearly

This announcement appears as a matter of record only and is under

resumption of economic ex¬
pansion is dependent on rising de¬
mand. While undoubtedly inven¬
tory liquidation will - soon ehd,

look

Views
a

the basis of
recession but on the
basis of public benefits.
If wc
should get into a real depression,

neighbor" policy,
\

,

j do not believe that we

using protection would/ developed,
be to shift unemployment to other curing the
thy

can-

sparking the economy. We do not
yet know enough about the nature
of the present downturn to engage
in expenditure programs that are
slow in coming into effect and
hard to turn off, once they are
started.
However, now that inflation has subsided, we can look
at civilian needs more objectively,
Postponed programs can' be put

of

-

i

We

point is along

^ure pr0gram

damage to our foreign
relations would be serious.
The

countries

r

downward movement when there

the

"beggar

•

A

prospect of

ma-

have yet reached the stage in the

recession

assurance

no

..

friends;

raw

bath water.

were

^ fourth

a

an

if it

tion to the recessions of 1949 and

1953, there is

atti-

need foreign markets,
policy it not

economic
;

Offers

diplomatic posture.

some

comparable in mildness and dura¬

We heed

free flow of

-

ance, would be minuscule in relation. to the national economy

result

their

keep friends by playing
tariffs, export
subsidies, and other international
economic devices.
/
,
; .

at home by increasing tariffs and
protecting domestic employment,
The benefits here, if any on bal-

while

us.

on

or

fast and loose with

con-

to the conclu-

mistake to try to meet a

u rive r

n s

that

second

p u r-

a

not get or

point which I wish to
emphasize is closely related to the

chases and
c

free

as

The third

for
capital.

take

to

sometning that we can safely turn
from hot to cold or back again

imeommitted

the

we

1 oieiS«

element in maintaining ourdefense

;-

a

Foreign

;

siderations lead

...deep

h as;;.-

has

In
T~

-

of ,rthe

/sion

liquidity

credit has been

of

eves

;

The v velocity
•
of money cir-.'; .

risen,

the

,

stimulation.;-

need

terials;

addition,
recession
4~~
here
has
already meant difficulties
for
some
raw-material
supplying countries and, if it con¬
tinues, will almost certainly be
widely felt throughout the world,
weakening the economic strength

;

countries

tudes toward
we

nations.~

1953.

afford

•

in the eyes of the uncommitted

from<:,

longer

no

of

of-"

wave

demand

that

or

1949

of

cession

other

system and our industrial strength

present recession should be taken
more seriously than either the re-

cannot

complacent view of the impact of
our policies
on the economies of

and "playing fast and loose

:':j, devices."

"■

:;WeV

;

subsidies, and "other international economic

with tariffs, export

steps inconsistent with our

talk;the

with public spending. Instead, he favors putting into
operation postponed programsTo provide needed public bene¬
fits and a, temporary tax cut, and does not favor using defense
omy

*0

The Commercial and Financial Chronicle

(838)

rials is

The Case lor Investing in
Natural Resouice Companies
|

The

Taking 1950 as a
predicted
thatv our )
demand for tin by mia-iy/u would X'
aemana lor
oy mid-1970 wouia
increase

I

!

ing

f

"have not nation"; calls attention to industrializationabroad by other nations; and notes the relatively attractive
prices; quoted now.
Adds declines are completely
unrealistic for what "in all likelihood [is]
a transient

I

his

18%;

automobiles

each

-

pace

f

of

t.,;t*r, V'V«
e s e.K ^circumstances;-;"^ave ^^^1957 f the

.

principal topics considered in Mr. Allen's study. Cites Paley,
Life, and N. Y. Times studies indicating our rapidity in becom-

.

1955

demand for zinc
T h
automotWv ¥
would be up 39%; copper, 43%,created a negative -attitude toward
/General Motors,/i ieouaiXpf13?
iron
ore,
54%;
rubber, v 89%; natural resource securities on the'jeading position in
the inn
/
nickel, 100%; oil, 109%; tungsten, part of the individual investor, because style
initiative, wasSX
150%; fluorspar, 187%; aluminum, The present unpopularity of these by Ford - and-.
Chrysler> ThX + S
291%; and cobalt, 344%. •
3
securities33has
caused v declinesi Gf ?fashionraces is
a^mdiirif*0
Since the report no basic 'jmajor which
seem 3 completely unreal-; financial burden and
it do<Sf
change has been indicated to alter istic. ^International Resources Mu--;, secure ^ the
investing comna •
these estimates. ;;
*%*;%:3^tual Fiind reviewed the •securitiesu With': any. - continuing kvarttS
Eight years have already gone performances of natural resource Such a

natural

I

ling
Attractive ?!

/ •

•

•

overwhelming institutional preference for investing in
resource
companies, and the reasons therefor, are

1

20

rising along

Commission

Harris, Upham & Co., New York City

f

Thursday, February

,

ulation growth.

By MERTON S. ALLEN

£

..

S'

competitive state has

a

by; thus we are nearing the; half- companies
from ; their
market /reached" in many industries tw
mark of these projected fig- highV of 195.6-57.to-the year .end
.companies involved almost 2!
ures.
es.
'
/
'•
*' w .1957 lahd found the following per-t0 -.enter a brand
-'new busiS*
Since that time there have been cbhtage' declines within Standard
each;./year ; with ^veryX
i-iirl
in/4iic+r*'iol
o+-rirloo
nti4cirlofn-f
irn4nctriol
'
:'x:rapid industrial strides outside/of 'JJr Pnnr'c industrial cfl'minc
&'Popi/s
^/carry^ver advantages-ftdKh*
the U. S., Canada, Australia, Ger- \ 4* A
: i?" -V». # Decline v past;:'
way

.

■

i

'

stability, tax advantage and
inflation-hedge protection, and limited supply available.

situation";

and

basic

notes

individual

available
with

for

laitude.

funds

investment

dilemma of

a

with

After

no

is

faced

small mag-

determining

the

amount of risk

must

tive

ansd

in

note

will

that

the

study

accordance

with his port¬

of

group alone repiesents
the
total
assets.
Coal

folio

est

Products,

require¬

there

is

final

task

eingling
the

Natural

Then

ments.

the

^nclndfn'v

of

the

^3 ~""""""~~39

Yv^tX3~3~~~~

""""37

"

~

dQ n

projected demand. There
betterthan
change that

a

E

been

the

for

case

Large

natur.al
as u.

resource

s.

•

Qulf

have

«£h eanivt «"™ed by their

further

McDonnell,

; United

Aircraft, ' Douglas, North

^

•.•

»

General,Dyiiamics, Northrop, Re¬
public, Marquardt; etc.?

Ao *

—

It should be noted that

of

some

Wh

-

cf0in«

these groups, prior to the above
eippftonipc
declines, had rather7 substantial r
advances during the bull market:', -Rendix
Admiral

com-

steel, Ana-

+n

con-,

period., -It would

however,

seem,

Rore

Warner

Mnt®rn,a

own studies, that that there is a good probability

hpnpfit

nnrft lln? J

^FlPntriP^

CondaCopper,International Nickel
and

or

electronic securities.,, Who is
goor lose the government
contract?
Boeing,

3,
a

.:

panies? such

shifty jn

havP

progress

tS ^ro^ess side of>ng
.h.a« the
thorn in the

ing to get

-—

5X2
Sulphur

natural

resources.

For-

a

purchasers of aircraft,. missile

oa'9

Integrate* Oils

and ur
unexpected

-technological

?

Manufacturers

— '
Steeh-Alldys'fAmeric.a^;.Grumma4^

even

be

will

Rapid

v

•

97'i

';

Vicissitudes of

.

Material

this

oils;
23%

^etal andIron and
Mining,
Rubber,

Gas,

■H

Aliiminiim

Wp^tinghnucp

Aveo

rdm'

Radio

4m,™

out

most

ap¬

pealing security
within

Merton

S.

Allen

•

the elected Held.

Among the many
(ndustries vying for his selection
»re:
Banking, Insurance, Public
Utilities, Natural Gas, Aircraft,
Building,
Chemical,
Container,
Electrical
Products,
Electronics,
©nd

is

...

One

industrial

estimate

Study

..

shows the largest group to be

"
*;.f
v'

veys such as the one made by the Vf
Paley Commission, usually under-" '

,

prospects

through

and
dllU

America

ing with people demanding mote >Sn„
wTil,;?"" if?
bette£
goods.
Past;«n
experience has indicated that jsuri-'vs
°

stock funds.
Trust

going

tldJJcUl
Japan

South

Eas£

indus¬
Investment

of

revolutions of modest proportions.
The Near and Far
are seeth-i-

meat trusts. Balanced investment
trusts were excluded because their

try offers the
most attrac-,;

.rt.IXXVct,
Africa,

countries

are

ings distorted the percentage as
compared
with
their
common

decide

which

latest published reports, the largpuoiisned
tne largest and most successful invest-

bond and preferred stock hold-

,

he is prepared
to assume, he

South
OUUUI

many,
Illdliy,

the

The

Mining, Petroleum, and doz-

•gns more

the

Aviation

prepare

Electronic

and

combined total 4.0% of the

groups

trusts'

This

investments.

It is

ply

other electrical companies who, of

There

;

exactly

attuned

to

missile

undoubtedly

•-

•

,

Several factors have to be taken

into consideration when using the

•

with

^

sup-

demand.

will

be

pe-

will

not participate in the riods in which demand

cour,se» ,do

much

rnnformin?
tn
thl raniRlv - Government- intervention is {
° ?
^
factor which affects the railroad
changing style: whims of. the pur- utility, pipeline^
telephom
chasing
public
or
unexpected' and like companies hegatively a:
technological advances of their investments,' through the settini

difficult, if not impossible,

for these companies to keep

group

includes the airline companies and

race

Individual Attractions;

^7 Alf®ndkatLsto^''0ne decided advantage natural many fine companies.iOne com5j
^ntfnued efforts to^^
fdr- resou^ce. -companies , have • over- pany does not long remain a "iaeXged futoe demand P
i"0'"6' aTO«^^ompetitifi.

rai Resources a clear majority.
It is further worth noting that

ex-

.

,

,

cee(j supply and, of course,7times" competitors.
•
t

.

v

when production ability will out- ing

These fads

•;

than

more

are

of rate schedules. ^While many o;

caus-•

,..

....

little anguish in

a

•

the companies within these Indus

heeds. The present economic" tlie automotive iield-ua welhas^Mrti^^enjojr local

pace

There

thing favorable
for

each.

©Mine

and

Dividend

probabl

©re

this time.

Sh-

The

aircraft and

elec-

Aviation

anamid,

Pfizer;

some

and

S.

U.

extensive

Gypsum
natural

Airlines

actually

are

resource

com¬

Machines

6.1

•

and

Machinery &

others

&

Natural

are

such

and

ramifications

•

•

•

•

•

•

>:

-

5.0

investment

trusts

have

tion

3.5

4.6

3.8
Tire

Ca<h

institutional funds been directed,
why?
s
"Favorite 50"

and

^

Vickers

Associates,

Inc.,

New

York City, prepared a study called
the "Favorite 50."
This is a list

&

Other

-

;

1.5

,/•

2.9

Iron.

2.9

:

tion

of

direction of

the

institu-

tional preferences.

En-iivalent

What are the reasons for the
overwhelming institutional preffor natural

erence

There

rities?

50

4.8

'■

;t

resource

secu-

many.

Some

in

stocks

the

'o

rp~-

ment companies and over 165 Mutual Funds.

The

vorite

market

value

of

the

"Fa-

50"

represented approximately 25% of the total assets of
all
investment
companies.
A
breakdown
that

oils

plus

steel,

the

of

and

list

natural

and

rubber

were

If the
at

least

partially as natural resource
stocks, then natural resource securities,

total.

represented 73.7% of the
Utilities
came
to
6.9%;

building

equipment,

trical

equipment,

tive,

2.5%;

8.8%.

The

and
oil

4.5%; elec3.6%; automo-

miscellaneous,

and

natural

gas

category alone represented 36.3%
of the total.

An

>

accompanying

shows

try holdings of, according to their

Low

stock

-~imon

/

:

13.2

^

States established

of

the

Mate-

Actual

*Tri-Continental

cash

and

is

6.9
•

38*

in

Filtrol
Texas

Potash

&

Chemical

the

a

115

70
73

Cities

76

38

S. Natural Re-

2.6

California......'

23

Kaiser

basic.

reason

The U. S. has less than 7%

of the worlds

0f

sume

for this situation is

it

population and only

land

almost

area;

yet

half

of

1.75
4.75

(9)

1.57

""

21.0

1.80

we

the

con-

free

4.58

3.6

1.36

(9)

5.0

4.43

(9)

:•

;

2.50J
.

,

37

2.00

/.

6.00

13.8

4.30

1.75

8.6

5.60

(9)

7.22

9.8

10.75

(9)

3.6^.

6.7

5.90

(9)

4.19

8.7

5.25

3.35

;

(9)

3.01

10.0

4.50

9.7

6.00

h

3/

/

•■"•

4.0

4.43

(9)

3.78

1.20

3.2

1.31

(6)

1.62

1.80

3.6

1.47

(6)

1.49

17.6
13.0

2.354:

50

31

1.40

4.5

39

2.50 !i

6.4

0.40

38

U.

57

3.00

5.2

68

Firestone

85

95

2.603

60

Goodyear Tire

2.401;

3.3

(9)

2.37§

(9)

4.83

Steel

Corporation
Rubber CompaniesTire

Rubber...

5.13

(9)

5.24

4.68

-

(9)

2.75
2.85

' 13.4

..

2.40

.

6.50

6.0

3.0

72

1.75

1.3

74

3

4.88

6.9

5.00r

6.2

3.61

3-

6.00

7.2

7.25

.

5.77

7.8

4.18

(9)

7.47:
6.50

11.4

4.98

(9)

11.0

4.47
1

84

37

Pittston

106

57

Corning

39

Co.'s with Uranium Kicker—
Anaconda
Company

Company

45

1.20

2.6

77

Works

1.50$

1.9
"

'

42

31

Homestake

3.00

Mining

38

38

Kerr-McGee

2.00

Oil

5.3

40

.80

2.0

sheet

1.80

12.6

v

3.87

4.2

3.00

balance

3.75

9.32

,

5.5

31

*0veMhe-counter offered

2.35

4.65

2.4
3.3"

43

corporation;

1

9.4

2.17'
--

*;;

16.0 ;
11.4
.

.

-

58

world's entire volume of resources,

Our rate of consumption of mate-

' 13.8

1.91;

(9)

Republic Steel

Glass

2.75

15.6

4.52

37

&
Miscellaneous—

Per Share

/

3

16.4

5.0

2.501T

/:

Earning

v

3.75J

45

Steel

S.

(1957 E
Earnings)

3.14

1.31

4

1957 E
v

■

:

3

mak
stock

3.92

2.17

•">•

8.1

14.2 3 :

■'•

(9)

(9)

;

./.

(9)

v:

(9)

2.40T7

8.5
7.3

"

35

60

vtv3:~.

3.71

(9)

0.90

5.7

8.2

3
2.45 ' '

1.78

40

65

sources."

The

-

2.95

1.37

46

of

3'.

Previous

2.49

105

Co.

Share

(9)

(

Petroleum

64

231/2

subject, which

Dec. 9, 1957. The title of
series was "Dangerous De-

Oil

Oil

per

(Mos.)

4.1

48

.3.4

f

P*E Ratio

5.9

24

3.3
2.0

3

common stocks percentages'were adjusted to
other bonds amounted, to 16.45; and preferred
,4
;

1.80

3,

23.1

,3
•

...

%-:\. 32.2 3,

*

.

1.00

75

Service

Dutch

z

•2.2

1.4

44.0

17.8

3.8

1.23

3: 3

2.6

1.00

V

1.39

4.1
3.6

i

Te~-

£5

.<•

6.4

1.1

20.1
*

17

°"mpany
PaperChampion Paper & Fibre
Kimberly-Clark
St. Reqis Paper..,
Steel Companies—
Jones & '-"lhlin (adj.)

four-

on

cline Found in U.

the

so

3.26%;

1.6

1.6

:

5.5.3.3/,

3

8.7

2.01

M

,.4.2
:

-s

.

"

5.3

2.00

.

1.4 33-:

••'•.■:

4.8

Earnings

101

this

"

6.3

43

Corp
Sulphur.

Gulf

Metals and MiningInternational NickeP*
Kai«er Aluminum & Chemical.....,,
Oil-

June,

1952. More recently the New York

on

;

-

18.6

Current

1.00

Standard

series

•;

Yield (1%)

1.20

American

-

1

2.751

60

with

11.6

totaled

•

1 ;*

,.

#

2.3

.

8.1:3
:'
'

3.2

Indicated

76

rapidly becoming a "have not
nation." "Life"magazine confirmed

concurred

' f

securities

29

Gulf

"Times"

;•

5.7 •;

8.0

v;

X 7.0
V

balanced fund,

••:

Socony-Mobil Oil

resources.

article

1.6

3.5

Interim

Cement

Royal

feature

4.3"
•

'33

1.4 " •

•

II £B|!'

S.

66

a

4.4

■,

%

a

38

60

began

government

Approx. Price
Industry and Company

152

dav

%

'

.v

funds.

% •i

•.

"

10.9

2.4 3;../
20.5

.23.0

'

6.8

Building Materials—
Johns-Manville

We

natural

to

are

in

1.6

.3.;. 3'.&
33

3.2

'

30.8

1.5

,

5A"

:

7.5

6.9

•/

.

3.2;; ••;

.

:-i .5

V;3:.7* 3 •

Chemicalsa

ply of our natural resources. This
commission, headed by William S.

this

!

/
;

-

Gypsum..,..,
Weyerhaeuser Timber

Policy Commission to deter-

regard

-

3.9
7.3

r

•'*'•

6.5

portfolio.

1956*58

mine the present and future sup-

8<£

table

the percentages of various indus-




President

that the United States is weak in

6.3%.

included

the

Paley. Chairman of CBS, disclosed

metal,

stocks,

United

10.0

2.1

chemical, figure stated.

1

U.

issues,

stocks

last" two

1952

rials

the

Approximate
Price Range
High

*,-

■

X

5.7

,v:

••

2.7

.6
*

4.5

'3/3/.' "3.1
if.r

''3"•

,,,,

13.5

11.1

.

*%

4.6;

$

.

,

:

1.5

■

Penn-Dixie

are

disclosed

gas

mining
and
represented 60.8%
of the list; chemicals totaled 6.6%
paper

In

in

o'u.

8.09% of the

Government Study

portfolios of 60 closed-end invest-

included

are

v

,

-<

.

'2.6

1-6.:

18.0%

m

">3t 2.0
•.37.3.33:
1,5,
•3;; 2.2 -.3 "

1.9
■

1.2

:-

2.5

./•

•

v

5.5^:v3,v

3.4 3-

;/ 3

41.8
i

6.4

23.08' X

4.5

•

5.6

12.6
•

follow:

favored

16.9

•

:

^2.8

-

'.5"
4.9

1.9
22.9

8.8

8.8

,:"/'

•

15.9 ;!■

4.9

1.2

12.5

*•:

1.5"

.

'^Drugs
were

9.3

.

"

■'•J- 3.5-

4.5

1.9

face value but only as an indica-

prepared in the fall of 1957 of the
most

5.4

13.2

Industries

4.4"

'
,

2.6

i- 22.1
*

5.8

-( "" K'i

2.8*'
5.9,;;

;'

*•>'2.5
•

•

•3:3:2,7 333

8.3

3.3"

3.7

15.4
-v

^

3;

\ i

1.3

4.1
•

.

1.2 •^*•3

,

5.3

1V;

Foreign
.

.:'V

•.;

1.1

6.2

i;,.V....

'

Utilities

such

of

'

'

8.1
V

i/'v 3.1

4.2

&

4.0

-

3.5

15.4

Steel

the

•

4.6 v;;

'

2.8

•

2.0

Retailing

2.5

1.5".
4.1

"

what

'*

k

2.9 V;--.:

1.7

j

■■•••

-

-

1.6

3.i% &

r

1.9

■i 8.7

t

•

Railroads

Rubber

\

4.3

.

1.7

;

:

V '*v»

.9%

'

.1%

6.7
'*

•

4.0

'

1.2

•••

2.9

•

Gas

3.0

•

;..

4.5

Mining

3.7 "*•••
4.1

:«v
3.5
/

2.0
4.3

Equipment..

Oil

Many

•

1.4

Beverage

Forest Products & Package
Insurance

while

•

.8
1.8

....

"■•Tricontinental

2.9%

'4.8 ,'i."

"*V

'

2.4

:

Trust:

2.0% :C
4.3

u. s. &

MassX-lnyest/^ic.'^v;^^

.

.

3.7

-

Metal

Fundamental, Incorp't'd; Investm't Co.
Lehman
Investors
Investors m of America .-t ; v Corp.

3.8

v

2.3

7.6

Chemical

Food

•

1.4%

2.2

•

2.9

Electrical

finers,
grated,

2.5%

1.9

Drug

,

'

Fund
1.0

6.0

Coal

ing industry.
Obviously there has to be a
good deal of weeding out.
But

Fidelity

'■

2.3

Building
Business

•

'

Finance

&

•

Eaton &
>V.
Howard Stock

es

1.6%

Automotive
Bank

benefit considerably by the speedup
in our missiles and .defense

&

price.

statistics

^Excludes noti-recurring

in

Canadian

currency;

7.1

5.06

(9)

3.75

1.86

(9)

7.50
2.50

6.0

2.05

v

31.0

'

*3
.

.

'

3.36
1.13

2.31

^

(9)
-

17.6

1.09

2.16

4.00

10.5

9.80

(6)
(12)

::

17.6

Income. ■ tlncludes extra dividends, f Plus stock dividend. § Pro forma1 data,
dividends subject to 15% Canadian non-.residence tax withheld at source.

4.

-

2.15

■

v

2.31

*:Canatlian

"*<

Number 5718

Volume 187

(

'-servicing

its

over

are

■/V .'•••/By CECIL BROWN*

from these negative factors.

free

Commentator, American Broadcasting Co.

President, Overseas Press Club of America, New York City

Basic Stability

;

■K-,

-

-

The above circumstances rarely

t

True

if, affect .the 'natural resource companies.'// Paperr 'laluminum, / oil;
4 rubber, etc. are always^., in style

»our

i Further, if business is poor one

v-

the inventory problems are

year;.

.

enough,

-

former position as

leaders—that we will catch

our

//with Soviet Russia.!'- Ilk urging

■

up

with

shack

rice

But then,
do

To

roof

a

desires

that

J J more
manded

i..»-

every

as

a
a

immaterial to millions

/
'

wailing at the

'.than

sources

earth's

the

to

companies*/'

Inflation Iledge^

-

•

words'.

;

onnnni

...

l/i-j/But^this century is the age of:;
heard-round the world is: I want
heard -'round the world is: T want

the motions of

economist ■' will

any

mine.

a/crab/arfis;£
moving side- will, is inevi- ways, because .

agree that the consistent erosioff
Of the purchasing power of money;

inflation; if you
table. History has proved that, at
best, inflation: has;only been delayed during - various periods of
our economic development.
Dur<or,

times

such

ing

companies

\ Such

:

century, there's an essential
difference.

are

whether

doubt
Africa

anyone

can

and

Asia, as well as
Europe,-these days, without rec-

visit

say:
want" what I should have in a

1

to

win

We, the richest people on earth,
an insecure,
baffled and not

informed people, are
a tizzy by each purge
in
Moscow,
and
each
Soviet
gyration.
>
well

Is it not time

one

by now to develop

conviction?

t

.

„

Two Courses to Follow

t

One, quite obviously, is war.

sumes

ral

a-high-level, prices of natuhave

resources

While

^tendency-to

a

space,

value of the assets retained

mining,

forestry -companies,

-

we

20til Century Revolt

however,

madmen have scattered hydrogen

bite..the Russian-made French or English king, an obtuse
over us from outer czar>
a maniacal Fuehrer,
or a

etc..

^ ">;-v ;-;v ■
Limited Supply

•

.

..

.

';

-

'

-

whether

We

are

should-jump out of ■■ notion
bed, or go on yawning, sleepily
murmuring: Oh, Uncle Ike will
we

that

the

good

It Is a
things

sensible

person

ured words—co-existence.

visit

can

we may shrink from that now
Russia, as I did this past summer re(j.starred word — co-existence,
without returning with an absoi
..
lute conviction:

world-wide uprising against the

not quite sure

•

of

f V

"

That the Soviets want the ulti-

.

But sureJy» we cannot quail and
*
Continued on page 26

,

•

to

Tot*

this

of
;•

surface

There is a limited
it

and

of

world

land
ice.

area

Parts

much: take
the rest sea
So

ours -

and

of

-'2.5

are

readily
It

to

say,

ite, gold, uranium and other natu¬
resources/1 Some of what the

ral

■161

earth contains has been found and
,1.7

has been used.

"3.1

been

What has already

is

found

everything,

NIAGARA aM MOHAWK

saying the obvious:>
that we, the White

House> the Congress, the nation's

Daux^;me(j.a

2.6

the
the vast
majority of the American people
communications,

New Issue

business community, and

have
years

luxuriated "in *' almost" five

250,000 Shares

of Rip Van Winkelism.

owned, by various
That state of suspended anima¬
companies and/or countries. There
tion was so profound and precious
is still / more to: be ^discovered.,
that those who tried to, puncture
Obviously,that which ; has been
the
blissful
somnolence : found
most readily accessible was first
to be developed. Those resources: themselves denounced/as'.unpatri
which have not yet been disclosed/ °^c
even subversive.
^

Iks
4.2
1.6
1.6
-6.4

2.2
23.1
3.3
2.0

Niagara Mohawk Power Corporation
Preferred Stock, 4.85% Series

probability, will prove relaNow,'^President Eisenhower, ; "
tively costly to develop.
; v.Congressmen > and Editor s. are
'

in all

3.4
5.7

8.5

now

of

only

con-

tains a fixed amount or oil^ bauxtains a iixecl.amount of oil

2.5
v

care

It

it

accessible and others not.
•

area

"

•

The

6<lds
dictate if that

7.3
8.1

almost' of-necessity

-. the
major natural
companies / which exist
today will bO the ones, to secure'

resource :

($100

par

value)

soundirtg the cry that lay silent •,
111 their throats and stilled'in their ■
PQns, jfor so long
thte cry ^of:
Americans, / and

/

major resource finds, of "To- arise. Come out from behind-that
The -population of this eight ball; •,
globe Oi ours continues to grow—' r- We have, the precious oppor-

/

Awake,

ye

the

'a hiofroW.

but the availability of natural re-

T sources to • supply them, does not.
.

:"

--

a

:

s

*■

Conclusion

-

.
■

.

! The
foregoing does not mean to
4

iimply that all

one

must do to be a

successful: Investor

is

dash-out

6.00

immediately and start!purchasing
natural-resource companies;^.or

1.75

that

rsu<;h securities

are

to be pur-

chased with quick profits in mind.The issues following are suggested
long-term
They are, for

investments
one

reason

onlv.

or

an-

other, especially attractive at this
time.

tunity to help manufacture peace
in a quivering world. And quiver
it- does,- for -we ,tremble" on the

Murdoch,
Rippev Formed

*

This announcement is neither ihn

-

.

any

The First Boston
'

t

Eastman

'

Corporation

government

„

deedI to the investment

,

,

\

-

.

•'
'

Mjrron Hauser, President;
Richard
Murdoch," VicePresident- and T Mes RinnPV
Amp?
ana
-1,
rtippey,

,

Blyth & Co., Inc.

Drexel & Co.

•

Glore, Forgan & Co.

Goldman, Sachs & Co.

Kidder, Peahody & Co.
*

Rhoades & Co.

Lehman Brothers

Incorp
Incorporated

Merrill Lynch, Pierce, Fenner & Beane

our

jn manv respects, the

Smith, Barney & Co.

dominant /

*An address bv Mr. B»*«wn befnre the
F,^na,
Session
the National
r....mign
Trade
Convention, New j York
City.

'•

^

are

Digitized for Secretary!
FRASER


v

"

Carl M. Loeb,

'

condition
business of cai-,n0t be that desnerete. --

5ff. ^ Sloan Investment Co., Inc.

-

/

otUciat< vdon't
than the com-

DALLAS, Texas—Hauser, Mur,u
■
know any more
doch,, Rippey ■ &
Co.,; Adolphus mentators. '
^
Tower, has been formed to suePut tben snrelv,

-

Dillon, Union Securities & Co.

■

our

Ripley & Co.

Incorporated

the

In Dallas

solicitation of an offer to buy these securities.

Copies of the Prospectus are obtainable in
State from only such of the undersigned and such other dealers as may
lawfully offer these securities in such State.

Harriiran

r

past few years,-and the way
sortie- of
our
l^ders' reacted to
the
first
Spntnik.
I
have the
frightening thought t^at perhaps

offer to sell nor a

share

from February 25, 1958)

The offer is made only by the Prospectus.

concede/ even the news

commentators.';'
' ./"/ ;,///- '
You know/ after the events of

V

Price $100 per
(Plus accrued dividends, if any,

razor-sharp ridge that, separates ""
golden promise and unimaginable
desolation.
w
We are engaged in the exchange > f
of goods. I suggest that that field of endeavor may contribute more f
to the fashioning of a spirit of bearable tolerance between peopies and nations — which is the
real definition of.peace—than the
statesmen, the bomb throwers, .
the Madison Avenue and f Red'/
Square • slogan .makers /and,
I
blush to

Officers

,

1

February 18,1958.

only

asked:

treasured American word — comthose petition
or, the Soviet's treas-

allies of Communism.

No

.

of despair.

,

.

it might be added,

And

are

at the moment,- in comic Italian dictator,
bo<My chemical changes.
R Js a revolt to secure indivld.

»a;niaterial blessings.
tends to increase with the passage
of Time.

_

..

we are,

between

be

Where is everybody?

Then, he said: "Our enemy are

dust,whipping

Thus the
by oil,

increase to hew heights.

.;

:

would resolve
only one point: Ho\^ little of the
world would be here, and how
few people can remain in it, after
That,

adventure,

Secretary of State.

events.; Brit! it is getting; rather
annoying to .find J ourselves, so
often, with egg on • our faces.

by

but

could

seldom recede beyond "the level
from which they Commenced their
climb. I-isWhen businessragain -re-

by

tactics..

—^
+v_

not interrupted.

I

1 Now, people do not- merely

e

Russian bear

who

been

thisv

Rock, and be;%t h

have

aim

icy, are not dissimilar, one iota,
from their predecessors. They are
at war with us, and they mean to
do US In.

known, of course, since time be-, all fated to»stumble drunkenly
gan.
But in this second-half of toward the next £«qtury—if we

of Sputnik /
a n d A-» it'tie
c a d s e

yearnings

Soviets

—

*

Almost

are

hearts and minds of the offspring • , Now,' as we, and they, trudge
0f this century. ^
:
^ '' 'down the Sputnik; missile, jet
tt~i
•*. —j
^-e +uj„ -—
Unless we all recognize it and bomber strewn path of this cenall help to deal with it quite ef- tury,
We, and they, have two
fectively and intelligently, we are choices, two courses to follow. "
t

#most strideftt voice
i

win,

The present rulers of the Kremlin, in the conduct of foreign pol-

that

distribution is now pulsating
. ^

<•

appeal.*.-

to

lIieiu
vaned capitalism, sociali?m: communism It seems to me
that this desire to have the re\v.a? .? ?. industry, Science and

such-

cherish

deeply

Even the communists use

them.- Thus, they are aspirations
which do indeed have a universal

„

iv a

re-

•//'/• c a us c <-o u rf
economy has ;

//

/,.

j

.l 1 and
manufacturing wringing of .' -/
«///*:
hands,,. hc-r/J

fob extractors, of

rights * We

•

_

depletion • allowances.

and

considerably more favorable

,are

I:

is;. £uite
dent, much

recognized that the depre-.

eiation

methods

carries

vehicle

f been

our

seek

thrown into

such

Pertinent to our times,
-now determinedlygreat
deand to
and to
verv
very

—

We

conquest,
infiltration,
intimidations and, if you will pardon the
play on words — by cut-throat

pese are nol omy basic but }vmu
oasic ,)ul what

'.i

sure,

The

tion.

these'are not only

M versus last year's coal should be J VWeAmericans are usually .pscilT/characteristic of the 20th century
quite .discernible. ->
• .
latijng Vbettoeeri £arr.6gati0ev-and'' is: not "idealism, but materialism.
'i.i

be

very

submit

I

remember, so
of ours.

us

persuasion, precept and participa¬

does not

that

let

want the triumph

we

different.

leak. /

as well as peace, Mr. Brown assays wrong and right
^ activities and warns
^'we can compete only by competing."

m...

of

mate world-wide triumph of their

It need not be a swank Park
Avenue apartment. It could be a

"giant step" toward military

a

Waldorf-

It could be only

bowl

assured

wheel

a

a

11

cause.

day.

strength

•

be

could

It need not be

Astoria luncheon.

"leader of the Free.World." Cecil Brown

*incre<hble utterances of

It

Cadillac.
barrow.

of our previouradvantage and castigates

constantly-finding new
j £ets'M / V
- ;.r:V;a///;/." ^ r
v

>.

.v

~

an

..•are
!

./

have riot stood still but we*have not done

we

commodities

these

most, of

.

nationally known TV-Radio commentator asserts in recalling

v

and

life, the decencies of human existence, are not permissible or obtainable for any of God's children.
That attitude is a startling and
stunning change in the attitude of
mankind toward his destiny.
I hasten
to add that a good
thing
of
life
need
not
be
a

An American Road to Survival

speaking,

companies

resource

(839)

The Commercial and Financial Chronicle

.

pricing

and

judgments^r Relatively
natural

.

regulation

government

constant

:
.ti

.

Stone & Webster Securities Corporation

White, Weld & Co.

12

Stress

Optimistic Bias—
New Problem for Forecasters'

Peimaneat
A

:

By DR. A. G.

ABRAMSON

Director of Economic Planning:-, :

Philadelphia, Pa.

S. K. F, Industries, Inc.,

»

Another

facts,

Long Run

on

compulsion to be
optimistic has developed out of
the recent emphasis on long-term
prospects. This emphasis; has af¬
fected the forecaster in two ways.
First, such long-term planning is
supposed to modify short-term
movements in a favorable way be¬
new

important segments of the
business community are now act¬
cause

Copious pressures fashioning uncritically held optimistic busi¬
ness views are surveyed by industrial economist who compares
this "mood of the moment", optimistic bias with opposite held

long-term
growth, labor shortages, etc.,
rather than adjusting to shorting

economy", thesis. Dr. Abramson
finds the pressures include: private and governmental leaders'
assumption that the level of business is a matter of psychology,
emphasis on long-term prospects, belief we can now mitigate
the business

conditions to

term-declines

or

casters

This

demand.

in

for: action

basis

business

means

activity will be more stable—for
example, it is supposed to result
in more
even
expenditures for
new plant and equipment, at least
for the large companies. Secondly,
analysts who concentrate on the
long run are presumed to deal

cycle, and argument we cannot allow economic
sabotage our world leadership position, interna¬

political party chances, domestically. Cautions fore¬
notes skepticism regarding value of business

tionally,

the basis of

on

,

during the days of the "mature

'

and

with

outlook seminars.

fundamental foi'ces and

more

therefore

provide

worth¬

more

while and useful conclusions. This

said of people without demur their responsibility point is illustrated by the follow¬
in general that they tend to pro¬ for maintaining the economic ing comments of William C. Bober
They in the "Harvard Business Review":
ject the current scene into the health of the community.
future.
If
conditions are good, differ on the methods they choose
".
we must learn to
distin¬
to employ, but not (apparently)
people tenH to
guish the fundamental from the
in their confidence they can do it.
believe they
spectacular, the permanent from
The new doctrine is so universally
will remain
the ephemeral, the profound from
iccepted that one would be the
good—if they
superficial. ... It is the explo¬
ihought very eccentric, and very sive events of the moment that
are bad, to
eactionary, even to question it. catch and hold our attention
believe they
Vet the odd thing is that this re¬
will remain
most of these short range ciases
sponsibility has been accepted
bad. T h i s
are
not the stuff out of which
without the slightest proof that
"mood of-the
anyone knows how in fact, it is to
moment"
It has long been

.

.

.

.

forecast

be

has

.

nentStoics!"68 i's ®rea': perma_

discharged."
ordinary

Under

also been used

conditions it
politics

Or

would be considered poor

!or

proclaim that economic conditions
bad become

rent crisis."

range

projections of
professional
business

ditions

one

the

In

of its 1955 bulletins,

Federal

Philadelphia

Reserve

offered

Bank

this

of

advice

or

would

or

seeker to

soon

become

during his tenure. Although
hedged in the act itself, the offi¬
cial acceptance of this new re¬

history is

to be wary of moods of the mo¬
ment.

more pressure in
direction. This does not

sponsibility adds
the

same

imply,

to forecasters:

"One of the lessons of

holder

bad

ana¬

lysts.

A. G. Aora»

con¬

office

of course, that those en¬

gaged in the technical or profes¬
sional

the

of

end

their conclusions.

slant

project

But there is ob¬

Prolonged depressions start¬
vious pressure to put as good a
ed us searching for changes which
face as possible on anything held
would explain an apparent condi¬
If the
tion of chronic stagnation; ex¬ mp for the public to see.
tended booms, on the other hand, government is responsible for the
maintenance
of acceptable
eco¬
have often inspired explanations
nomic conditions, one must assume
as
to why depressions have be¬
they have the ability to discharge
come a relic of the past. Realism
that responsibility.
If conditions
demands that we avoid being car¬
are not good, then there has been
ried away by either extreme."
failure to act wisely or in time.
When business conditions
The pressure not to admit failure
change, there is a natural inertia and invite defeat at the
polls is
which causes people to resist rec¬
obvious. Thei-e is a strong vested
ognition of the shift. This reluc¬ interest in
preserving the statisti¬
tance or lag is due also to the
cal facade of prospeibty.
"mental conditioning" which de¬
The pressure on the forecaster
velops during a prolonged boom
to be optimistic comes also from
or
decline.
Philosophies such as
leaders in private as well as gov¬
the "mature economy" thesis de¬
ernmental organizations. Some of
velop to explain why a decline
these leaders or top executives be¬
may persist indefinitely and "roll¬
lieve the level of business is to¬
ing readjustments" to explain why
tally or largely a matter of psy¬
a boom may never be interrupted.
chology—therefore no one should
Everyone hopes for and works make
any public statements which
toward that happy time when we
would weaken confidence. Others
have found a way to achieve con¬
believe forecasts of business de¬
tinuous growth without inflation
clines ci'eate antagonism or fear
and without destroying those eco¬
on the
nomic liberties essential to

a

free

".

psychology, then visions of his
pulling the rug out from under a
gallant, far sighted, and un¬
suspecting Uncle Sam would un¬
doubtedly have its obvious effect

question

on

his forecast.

Natural Tendency

This

have rea6hed the stage where

we

analysts to feel the business

some

cycle has been substantially modi¬
This belief is based on the

fied.

long-term business
planning, the increase in impor¬
of

growth

tance
of the
governmental and
non-manufacturing sectors, the

growth of organized industrial re¬
search, the development of many
new
and
important industries,

governmental actions to maintain
income, a larger percentage of
"spending units" in the higher in¬
come brackets, greater knowledge
of the causes of business fluctua¬

long-term

of

previous booms?

ing

Unsubstantiated

Optimism
come

from many directions and sources.
A new one was added in 1946
when the Employment Act of that
year was
nance
a

should

Similar

be

fluctuations should be
in

duced
or

eliminated. The forecaster who

results
dict

would

activity became

formally accented governmental

obiective.

Geoffrey Crowther, re¬

ferring to the acceptance of simi¬
lar

responsibility by the British

Government, wrote
"Both

parties

in

seem

1956:

to




accept

such

obviously not pre¬

declines, or at least none as

severe as we

have had pi'eviously.

Similar

compulsions

exist

employment

—

declines

create

problems and dissatisfaction.
conditions

All

being the same,

financial people find an expanding
company

usually

more

and its problems more

profitable

managable.

Analysts of the business cycle
aware

the

individual business unit tend

to result in

the

are

that these pressures within

mand and

over

are

a

estimation of de¬
factor in creating

cycle. The effect of these

sures

mate*

on

Another

the

analvsts'

»mt been

knowledged.

new

optimistic

business outlook has become

so

pres¬

esti-

widely

ac¬

the

in

ence

the

United

States

influ¬

economic health of

true because of its effect

trade,

or

on

world

economic assistance

psychological warfare.

or

A decline

in economic activitv in the United
States

is

said

therefore

threat not onlv to our

to

be

leadership

sive

"on the fence."

still
a

powerful and

argument.

It

is

nersua-

similar

in

emotional content to the argument
that

a

decline

in

business would

be nautical suicide fm-

a

nartv

single office holder. Its actual
on

the fcrp^aster

is

or

Bias

of

the

analyst

is

uncertain

his conclusion after

a

sort is,

any

medicine

bad

which

validity

0f

revised, ponder¬
overall
activity

always, rise.

>

Economics has been called "the
dismal science" and its
practition¬
ers "sad, thin men
wrapt in gloom
•V

and

eloquent only in prescribing
misery." This day has certainly
passed

far

as

forecasters

as

cial:

-

".

forecasts

.

.

are

tend to support popular sentiment

published forecasts try to
please the reader."
.

.

It is easy

interpret

for

forecaster.

a

to misrepresent, mis¬
misundei\stand the

or

state of things

in the forecasters

trade. Valid generalizations are
difficult to establish here

as

else¬

optimism

strong

are so

to suggest the usefulness of

as

bit

a

of self-examination.

■■

m

In

as

But the pressures toward

continual

of course,

-

unfortunately

■

■

Eisenhower Expects Recession to End

in

special statement, answering pessimistic utterances re¬
we have had
the worst of unemployment; forecasts March "should mark the
beginning of the end of the downturnjn our economy";; and is
confident in the "recovery of our economy later this year ..
Also, releases a fact-paper showing right, not the wrong, steps
a

garding employment trend, President believes

that have been and will be taken to spur recovery.

Following is the text of Presi¬ sumption of sound growth in our
Eisenhower's
special
eco¬ economy.

dent

forecast statement of Feb.
fact paper setting forth
programs and policies bearing on
12

Confident of

and

the

economic

current

Yesterday

situation:

the

Departments of
Labor
and
Commerce
published
figures for January on employ¬
ment and unemployment.
They
indicate that
the

current

falling
the

is

in

off

economy

this

time

First, it is my conviction that
underlying foi'ces of growth

the

strong and undiminished.
nation, we must provide the
needs of a population growing at
a
rate of three million a year.
Billions of dollars ai'e being spent
remain

As

a

reseai'ch and devel¬
that will
mean
new
products and new jobs. Overseas
economic development will pro¬

of

of

vide growing
The

us

sources.

deeply

are

the hard-

for the

families of the
Eisenhower

Pres.

additional

out

those that have

of

of

work,

gone

ened work-week.
are

and
a.short¬

on

I know that

we

concerned, too, with the loss
production involved and the
this puts

nesses across

on

many

the land. While these

of

situation,

present economic

our

they

perspective

must

as we

March
From

and

011

be

/

get,

study of the facts

our

that

bad

we

news

have
on

had

the

ment front.
we

I

not

are

am

most

convinced

facing

of

unemploy¬
that

others

taken;

ef¬

as

to

study of the

are

review; still
before Congress in the

under administrative
others

are

form of

requests for

legislation.

Taken

Action

dispel false impressions

To

and

activities of this
Administration in these fields, 1
to make clear the

am
releasing today a fact paper
setting forth programs and poli¬
cies bearing on the current eco¬

They

situation.

recent

in

action
can

regularly placed before me, I be¬
lieve

been

ready

nomic

Pick-Up

the best advice I
my own

in

seen

look ahead.

every practical avenue
Some steps have al¬

on

action.

busi¬

developments reflect important
features

covery in every sound way. I am
making sure that we will go for¬

ward

breadi-winners

temporarily

for it.

Second, the firm policy of the
Government is to foster this re¬

figures

record

the

to

pare

that

these

markets for our re¬
future will belong,

faint-hearted, but to
those who believe in its and pre¬
not

concerned

ships

later this year

ery of our economy
for two reasons.

opments

year.

All

Upturn

I have confidence in the recov¬

every year on

sharper

than usual for

Federal

Reserve

incl"d®

months by tne
System to ease

credit, with dramatic results al¬
ready achieved in a greater avail¬
ability of credit and lower bor¬
rowing costs.
Steps have be
taken, going back to last Augu: »
to stimulate home building, ev

disappointed

a

prolonged

though

downswing in activity.

Every in¬
will

Congress
authorize interest rates that vv0

mence

is

to

that March

see

the start of

in job opportunities.
mark the

the

provided

a

com¬

pick-up

That should

beginning of the end of

downturn
we

difficult

to assess, but its tendency is cl ear.
If

outspoken

dication

unity of the free world
and to our success in convincing
This is

more

published data, particularly

some

where.

Skepticism on Outlook
Symposiums

a

but to the

those

Some

observers question the

.

the growth of long-term
business planning, the new inter¬
national responsibilities of the
United States, domestic economic
developments believed to modify
the cycle, and new pressures with¬
in individual companies and other
economic and political units.
ment,

our

allies and of that part of the world
which is uncommitted.
This is

fect
own

compulsion to be
business pros¬

comes

tions

out

look.

management association offi¬

more

enduring because of the accept¬
ance of governmental responsibil¬
ity for maintenance of employ¬

about

from the "cold war"
and our position of leadership in
the free world. In general the ai*gument is that economic condi¬
pects

of

public and many
private
conferences on the business

prolonged business boom. concerned.
The new attitude is
decade or so the public reflected in the
following comment
expression of optimism about the by a

of

World Leadership

Commilsions Within

be

become

usefulness

most

a

re¬

magnitude and severity

believes in the probability of

avoided.

Firms

passed and the mainte¬

of economic

and devel¬

opments are effective, then busi¬
ness

the

perma

analyst«

In the past

pressure

other

Pressures to be optimistic

contracts,

wage

etc. If these measures

to

stronger and more pei'manent dur¬

over

tions,

tends

so

many

nomic

push toward optimism has
strengthened also by the eco¬
nomic developments of the past
decade or so which have induced
The

been

part of customers and

therefore

readjustments will mean no more within
individual private firms.
than a leveling out for measures
Salesmen are suDoosed to be eter¬
of total activity. Is this commoii
nal optimists—always increasing
position a result of the "condition¬
their sales and share of the mar¬
ing" analysts have received dur¬
ket. Production people want long
ing the years following World War
'runs" and
low costs
which
II?
Or is it because this period
means larger volume.
Personnel
has resulted in an optimistic bias
peoole like expanding or stable
which is more
permanent or te¬
nacious than those which grew out

detect

to

attempt

an

to

happy, and well liked.

attitude

that

pose

those frequently
ous
measures of

{

,

wants

everyone

prosperous,

period of strong, or even phenom¬
enal, growth, emphasis on this pe¬
results in more optimism
does

and

news

„

short-term fluctuations.

.

wants to be the bearer of bad

one

riod

than

,

tendency to be optimistic
has always been strong since no

long-term future is
almost universally regarded as a

society. Few believe that time has
arrived. Yet much of the comment
on the business outlook
suggests

'•

>

The

the

Since

Optimism has become
a

the gleam of

.

.

Thursday, February 20,1953

.

now

vision beyond
the preoccupation of each recur¬

an

.

nent

described it:

short

if he believes business

or

.

conditions are largely a matter of

"Economist"

the London

as

to describe the
-

Chronicle

The Commercial and Financial

(840)

in

our

economy,

apply oui'selves with

confidence

to

Americans

we

the job
have

a

ahead.

As

responsibil-

ity to work toward the early

re¬

the

we

were

failure

of

.

the

attract mortgage money

into ma y

phases of home construction, i
also include sharply steppedexpenditures

highway
increase
urban

sharp

on

the

nation a

program,
activity tinder

building
in

renewal

program,

^
^

an

in the first
Continued on pa9e

increase

•

^

187

Volume

Number 5718

anil

«D¥AC

I

.

VUllQlIlOIlS
,

By WALTER MAYNARD*

Partner, Shearson, Ilammill

& Co.

is a token recognition of this unTreasury far higher sums than economy, not only in securitiet
if the reforms but in farms, forests* commercia fairness. It is our belief that the
were not enacted. The stimulating
properties and small businesses.
dividend credit should be ineffect of tax reform would be esCongress has granted some re- creased to 20%, as it has been in

I

r

r

;

would be produced

Association of America

Governor of the New York

Stock

conilHtip.

ir,

—

—

the

'
•

dividends by. the stockholders,
The present 4% dividend credit

capital which it would bring about, ment. The same situation in varywould, we are convinced, bring to ing degrees exists throughout oui

Chairman, Federal Taxation Committee of Investment Bankers

v

13

diminished incentives to tax avoid- his capital gain of 40 points. The tions is taxed once when received
mice and extravagance, and in- 10 points of tax represents 20% oi by the corporation itself and again
creased formation of venturesome the present value of his invest when received in the form of

*

■

(841)

The Commercial and Financial Chronicle

.

Jbcunomic

C11IUI

A UAVil

.

Exchange

.

.Securities

firm's

reform at this

tax

pecially desirable at this juncture lief in this respect to owners of Canada, as soon as possible,
when business is sagging and our dwellings, who are now permitted
!
national burdens are increasing. '
to sell their homes free of tax if
IV
{they buy a new one within a
Voluntary Pension Plans for
year.
One of the considerations '
; Self-Employed Individuals
> "

testifies that stimulating effect of

partner

recessionary time would be especially desirand steep progression of personal

able since punitive rates
income tax

seriously affects all sectors of small business and
general economic health. Besides advocating income tax re¬

form, Mr. Maynard suggests
dend credit and pension

;

leading to this provision was that
Finally, I mentioned earlier that
the rise in the price of homes a Very substantial * proportion of
}™ch produced the gam subject our industry was organized in the
0
* was in large measure due form of partnerships. This means
*° inflation, and therefore illusory that the partners in firms so or-

::V; Capital Gains Taxation
In

reformgpn capital gains tax, divi¬

another

of taxation the

area

Investment

with

Association,

Bankers

in

plans for self-employed individuals.

common

other

organiza-

.

tions in the financial industry, has

The members of the Investment

-and illusory gams

leadership, and the added defense
a special interest, that is the area
Bankers
Association
operate in responsibilities which are now beof capital gains taxation.
areas
of the economy which are ing thrust upon us.
Anv
analysis
of
the
fundaextremely sensitive to shanges in
The premium on a strong shift
economic

con¬

ditions.

in

The

businesses

o

f

tion's

when

mem¬

bers come

un¬

er

heading

toward

tax

forces
and

ex-

obvious.

making

would

about

comes

be

tendencies

In

for

tax

toward

evasion, and the
increasing ex-

o£

our

T,?„r corporations. Your Committee has

—

_

members
about

;and the
f

manly

me¬

about

in

~

nmot

Our views bxnressed here
uui views, expiessed here

iLnf i.t_A

sinele

IS

iS

reflect

,

i

.

the personal income tax.

shelter

the

of

\e

heves that

macje

self-employed

start should

our

nomic

'

belief that

personal in¬

an

jn

brackets,

interested

especially

are

comes

Tariff, $5.50.

-

capital gains tax lia- To Hear at Dinner
Security Dealers

The New York

HI

?>u if h«" wv

Association has announced

Dividend Credit

TP^irloTr

j,,

cotporate stocK m ina
the hands ot toipoia

.

Astoria

Marph

7.

at.

thf>

Hotel,

This advertisement is neither an offer to sell nor a solicitation
The offering is made only by the

in

of offers to buy any of these securities.
Prospectus.

NEW ISSUE

$1,500,000

tax

effects

which

in

the

than

they

directly

widely, and
generally arise
from forces entirely beyond their
control. In the business history of

AAl ViV"

long

50%

the

more

in
in

Sce«

excess

of

of
oi

extravagance

50%
ou/0

ta
in

effect
eiicci

the

cause

.

that

urges

able

penod,

?ax

irom

antique Lnippenaaie
executive offices, through

advertlSmg

pendUureJ

is

ch-

exotic

than half of

each

can

dividual, this
in

an

in

situation

is

harmful

order

risl»g

economy which must grow
to bear the burdens of
pop

ulation, international

"Statement by Mr. Maynard before the
Ways and Means Committee. H^use of

etic 0L' a steeply

™DOSals
P

th
"u

all

fter

the members
must make it

study economic
^ clogest attention,

reform

the lines
in even a fairly

along

^gested will not,
su»g
q{




Scott, Horner & Co.

Auchincloss, Parker & Rcdpath

John W. Clarke & Co.

Inc.

Doolittle & Co.

Mackall&Coe

Stein Bros. & Boyce

guch

ag

Rouse, Brewer & Becker

TreaS-

February 19,1958

On the contrary, the aaaeci
incentives to creative work, the
(

j

i

Hewitt
&

Irving J. Rice & Company
Incorporated

Stirling & Company, Inc.

H. P.Wood Company,

twQ

significant reduc-

tioil in tax revenues to the

Jones, Kreeger

Ferris & Company

ury.

7ei958Cntafives* WashingtOTI' D" C'* Fe

the

laws thereof.

Johnston, Lemon & Co.

to

y"ars>Pause any

undersigned only in such States where

compliance with the securities

Economic

the foregoing
it is the considered view

bus'iness

be obtained from the

legally offer these securities in

Chace, Whiteside & Winslow,

to

A'ssociati0n,

^.

may

amount of

Stimulant

P

undersigned

The
progressive

same

Tax Reform an

dollar that he creates, he will be

tempted to work less hard. While
possibly not unpleasant for the in-

•

five yeais.

say

structure is that a man receivincome in equal annual instal1 c
less in tax than a

respect

Copies of the Prospectus may

of equity.

hwome in irregular amounts.

keep

additional

plus accrued interest

(The Debentures are issuable in denominations of $100 or any
multiple of $100, fully registered as to principal and interest)

£or this recom-

one

,.eceiviFg the

Human nature being what it is,
it is easy to see that when at
any
time a taxpayer finds himself in

situation in which he

theret

eluded in the tax laws a Provision
for averaging of incomes over a

Fngy1
ing

in

January 1, 1968

For this reason also our Asso-

ciation

iaas°dded r^ason

in

Price 100%

to save some

of income Should Be

Treasury to bear the
part ot the cost of eveiy
business luxury m which a tax-

major

directors' meetings

Due

January 1, 1958

tax structure,

reasonable

.

%

matter

1968

a

provision for retirement.

l'ort and toward tax avoidance.
the

6% Convertible Subordinated Debentures of

j

would enable them

fact

^

Company

lifetime they enjoy
really large incomes, which, under
of

years

in

add

include

Southern Oxygen
Dated

econ¬

a

exceeding

tend

from their businesses

fluctuations

these

The harmful effects of tax rates

less

the

from

to fluctuate extremely

revenue.

a

-

The members of this Association

producing capability of the

desks

for Bank of Commerce,

tremendous

n

y^aatS°of^^pi^operty m?wCeffec- N. Y.
Security Dealers
tively and permanently locked up

..

be

now

top tax rate is brought to a level
beiow 50%.

economic, and that rates exceed¬
ing 50% produce harmful eco-

m

llcn

Lansing

1946 Standard10; it of New selling ; A further matter in which our P. Shield, President of the Grand
Oil is now Jersey
invmum vsvuu
stock sold at
at 50* A buyer of Standard Oil Association has an interest is a Union Company will be the guest
of Nev^ Jersey "h 1946 at 10, ven- further whieh now exists against speaker at the 32ndAssociation on
who nation reduction in the discrimi- ner Meeting of the Annual Dinwished to make a more
^ b7t"h'at Friday, March 7, at the Waldorf
Waldorf

highest to the lowest, so that within a reasonable period of time the

in essence punitive rather than

rates
laics

effect of the tax and release

tax reform through firm

on

tions

tax rates which exceed 50%

In

hut also

these general now wished to mane a more ve.i- imuo„
*1
now
specific fecom- tures0me investment, would be holders of
Association be- required to pay a tai of 25% of income in

to

of the

on "Hospital Financial
taaafA s "sssu- ««». ^

' u- if 1S. exactly the situa- t>y potential
tl0n whlch exists m a great deal b-i:riGS

are
tax structure.

George Bugbee, President

amount of capital

oTL^und fS te

7"

?fin

v cuiuic*

wctvjj,

our

a

^

W*

amended to "provide that in no

would

reform of this nature because in-

It is

omy

bovine

Venture-

ways.

_

forwar(i scheduling of tax reduc-

1

are

idea

vitv

from

Departing

In addi-

Personal Income Tax Rates

come

simnlv

our

considerations

mendations,

tax, dividend credit and
for

other

in

really hurt by

personal income tax, I will also
discuss reform which our Association would like to see in the capi-

pension plans
individuals.

bv

fiiitiici in umci

•

lion to proposals for reform in the

tal gains

imDact

jts

of

munuu,- auu

„

K

our

tnx-free^cm-i^ T&iS

iUnited States, is that of the pumfive rate and steep progression in

1

"^eeUhe

Meeting all tries which fluctuate widely

health

to

-----

-

uu-ee

event shall the

"soak-the-rich" concept, actu- ""7
ally the rich can easily avoid much +.

business, and the

economic

were

vou

serir some small businessmen in indus-

nrnhipm

sectors of small

s^ot^roperty

a

^

io

Prrf't, our capital gams tax is in the amount o£ loss whieh ma b£ dinner meeting on Feb 20 at the
ieal"y ? vanable iate Uansfei deducted from ordinary income Railroad Machinery Club. Recepf ** ™er,e propose^ to your increased to $5 000.
,
fl°n wiP 6:30. at 5:30 p.m. with
be
Conuuitee that a transfer tax on
' ,
A
dinner at

vol'

upon

snortenea

*
live of economic activity, but also
steeply pro- ^ouW not bdng In any' substang^eggive tax structure is based on tial amount of revenue.
Qmr»nnt
nf
a
revenue.
■*-

*1--

Also> although

^uSS^S gained fl'°m th6Se
general

nofoi'me

T5fSL^S,JSftll

sx&eprgpcp stats wkmts

•"
m

great extent ter and perhaps ultimately fail.

a

cnanges 111 demand tor
changes in aemana for

Wo

soon we ac+ov

a

^

.

,

c? »

jw Jsssrftvr s. attijrs ."sf srtss

goods, and by changes
rates—areas in which

rxt

r\e

pre-

of tax. retorm.

l^mlasure cfepends

interest

cu/in'tfe

fairly

oiivii-ti/scf

businesses to

capital

s"
strong

so

and abandon purely punitive rates
which run up to 91%, our whole

22.

a fleeted by
ajieciea Dy

are

not fanciiul to
o

dict that unless

Partnerships comprise a high proportion of our membership.^ the

°«r

seems

7T-— «ptthe amplest

employees

is

unsound,

that it

number

dian
o

is

$225,000

,

J

Pins tax> as it stands, is noi a homes should be extended to from this situation, and they are
tax.5)111 capital gams at all. a true owners Gf all forms of property. fuiiy endorsed by our Association
capital gams tax would require
We als0 urge that the present
a periodic appraisal of all piop- maximUm rate of the capital gains i|
i A^JSt JtCCAA
ei^y.' ancl
e. Pa3rn*ient
tax be cut in half. It is our belief D3IIK wfCflll ASSOCa
°? ir]creases 1,1 yall!f
that at this rate returns from the «.
y ■ ■
MaaISniv

hu-

d

.

"
v u Bills,
r».n„
faT>1thatgathltacTptit°al fhele r®ats0"s 'v? 5#ve ihat thf betoreTt the Jenkins-Keogh relief
treatment accorded the owners of which provide
measure of

"

capital of

should not be ganized cannot accumulate provi-

....

reveal

araarssss?e=s-tarw

in that
median

the

the

must

avoidance

of small busi¬
ness,

50%,

fact,

the gen¬

eral

ci

which

from

away

and

individual's tax rate

an

ceeds

mentals

endeavor

effort

avoidance

Associa¬

the

human

creative

_

taxed. A large part of the gains sion for retirement on a tax-denow exlstl.nS V1 ot]?.er forms of ferred basis, as can employees of

Inc.

14

'■

really knows how deep this read-

v

whether there will be
of

to

as

1958 after analyzing

wide situation., One

powerful forces

the economic outlook and singling

retailing expert concedes "it is not possible at this point to

[what kind] of business
readjustment we are facing" and adds, however, that were
GNP to drop "20 billion in 1958" it still would be the second
best year on record. Turning to the state of world affairs^ the
with complete confidence

.

economist condemns small and

taken

I

address

an

of

one

I

Association

took

ago

year

Dry Goods

as

title

a

remarks the question,

to

"Will

Business Turn

t95°7^ I
Tnmmn
1957
com-

mented

the

on

of

measure

°

f

vin the sufficient
shares to - bring the
States, the /strength ^fxshareS owhed by Hartford/to at
the fact of managed.* least* 80% of the outstanding.. For

of

P

con
r

j

Prof. M. P. McNair
ir

lei1

industrial

substantially
sausLaimauy

lu

-

above
auuve

nn
on

previous

occasions

had

now

for

u

nur

in

that

In

moved

A

very

mi1/-»n4"1

«*.L

vrvrt/i

t

a..

a
ci

tu

tional easing
it. is in

since

ever

"on.

August,

and salarv

wnae

nuc.-

an-

St

I

in

retrospect

the year
vnc
jc«i

on

uu

little reason to

see

change

of those statements It is true
;ements.
1
that the total volume of business

any

--

„

_

f

—

—v-

1

•

.

The

A

cunamutui

uu

a

leading man-

ianeous-dtei^. til^mploys

sion is essentially "man made,;?;:
■havfi

wp

mishftrl' intn

hppn

.

uuljjul,

npri1fin<3

by steel production

it

nf

Kj^.±yj*y

-

-

-

-

-

City.

•

dttniit

7PiO

at.

rifrsnnts

its

:A

x.

•#

**

Callaway NY Mgr.

a totalg!
nlant.s

„

the doleful predic- The abquisitidn.by International^...w uavia n. u,,,..,,
is partprogram. term " / S1 -, Michigan Corporation, has been
ofiits long
diversifi--Vice-Presidentof The First of
cation

uv

fAw fourhes

a

of ad-

>

Fiinis&ative bundling in WashingJ^ustr#tive bun»un8 m wasmn?"
ton.

below 70% vi capacity,carloadings
,v/t of
vutiuwyivvuiv/Huuibo
.

19 58

The Appeal,

•

Tl 111

.

,

""

'

"

.

.

The

Bridgeport Brass Company
has sold its

AprosobProducts Di-;

i

'

Manager of

Resident

appointed

is

evidenced

Salvation

r m y

York

Emmon, Bryint

inventories to new Porter'"tersfinancial analysts
liaas and the su,ch as Sylvia
Thenf

as

-

or

Appeal in New-

,

of our economy profess to believe ufacturer;.pf electrical specialties,^
Qur curren£
incipient recess lipstick: cases and of other miscel-

uut cve" nw sigumrJs? 111 the ratio of
cuuist',

Iiidustry

Division

1

inflation is the dominantvthemeIsidiary.^Eyelet;is

_1

cycle.

Now

and

Some of those who are : per-: Specialty./■ Company,;. Waterbun'4 ^rvlces- ; which- the
Salvation
suaded that a creeping structural-which will, be operated as a sub-:; Army i operates in Greater'mew

nav-

™t
Fhnf \'

whether the American
people had
to overcome the busi-

1957

the Commerce

million...

-

.......

Bankers

Committee in

opposite diree--: , xhe has/acquired Silver Eyelet goal of $J 275 000 is^eekingtup"
International The Com- „ , ot4l/7S,uuu, is seeking suppany
port for the 60 institutions and,

ti0°^elnents in

month-to-month fracinuii in- tu-mvii

^manufactiirlnir

ness

ment

.

....

/-V V*

no means pre-

airmanship

of the Invest¬

Active. Feb., 10.' In the merger
each of the 4,000.-, sharps of An--;
sonia $50 par stock will receive lbu
shares of $10 par value common:at l.iPhion • and_ New Haven.; -.^The;
merged bank will have assets oi:
over $80 million* and combined

the, occ""'e"?e1 fi'om time capital and surplus/'■ * $5.5
of tj.<
.«

hiVh nintoGn ond
u y
a
gs ai
high plateau and that "AN
41-»
the question was whether wTco'iiTd O I/ALA
stav on it., anrl T sncffrActnrl +"hof fV>»
lne ratio OI ma-lUiaCtUring and
ana
vprv

a
a

ch

in-„'.vv^"

our

llie coiie^>onamto iiguies to time <*-Substantial corrective
to7a^rs^emonfhsT7e^7nt0 ,,me * of ,substantial corrective
same months

the

anH

tural inflation" by

the corresnondhi" Hgures

signifi- ments
that the dron is most

downturns. I remarked
uDwiuuiid.
economy

Xadof
Jlieau

*
WlOUB'

v

•-

; Stockholders of The Union andNew Haven Trust Company and
false voted to merge .the two banks, ef-r
of Ansonia National Bank have;-*
in-

chology that nppn«inns in us
has played
nrpvimw

payroll figures; personal

has shown
iiao
oiav vv li

•

had

pasi
,Past

"'V

led to
our

i

-

■

mnnv

in

ibusi-

•

prevailing^phi- -over-'40-years Hartford has rein- Ivf'V |m Plaaritu Ahua I
employment. These-sured the entire direct insurance
I" Unflniy flttdBjl
Emmons Bryant, President of
underlyta^demand forbothlabo?
1 by ^Northwestern, - Val-'.; r
/Blair
& Co
otlath«ugh on occasion some of ^
nrnwimi
tiocdn the
Inc., 20 Broad
observers th,t the
insurance'has beeiVt Ceded bacl£
Street, -New
ouf times k in th^dhwtton of to WlWftMwstern.
York City, has
price "nflatkm
Y t in this kind
V V:'.. •> ■ . . :
•
*
accepted the

a

,nn

some

the

:

recently^'october6'was^ffSallv of thinkinS of "New Era" psythere could -be the
rpnnrtZ Au y subtle bias

more

closely

;

Rrif3III IIaaiIc (Spaiim

fJL

million and may well hit 414 dustrial history. The longer a
the economy
b,an before this month is oyer, fcoom lasts the more people accept
which
were
^ e same time hours worked
as normal and
find impressive
making the Pe^ week have continued to drop, reasons why it should continue,
situation
reand the effects of less employment And in any event an underlying/
semble
more
?
shorter hours are appearing trend toward world-Wide v'strucand

-

.^7*

trade unions,

output, the business readjustment
baa already been going on for a

accumulation
strains

operated

Whitney

w^v?Cy^a#nn

v

of

is

and

pratt

of stock

.ttdnd;,!;o riods up; to June 15, 1958, is com- at the plant over the 1,400 npr
g0ve111??Tie
spending,. the tingentvupon the availability of sons presently employed there
popu atmn
growth

rapid

figure will register a further deThus according to this
physical

at

Middletown

share.

by the
Division of
Hartford i United Aircraft Corporation. The
rOUgh
sub-, contract will involve expenditure

P

-

doubt the December, 1957

no

Der

P11^® 0

dn^?t|y
15.8%s^he ^'^-is^expected,to
28^ but

.

steps

program

can cite such
Minn., at a
the rapid .rate There are

as

ST*? inteilsified>

stepped-up fiscal budget.
and

:

to the National Retail

.

faltering defense

far and calls for

so

.

The plant which was
constructed
^ &
^ about $5Q milUon

of technological progress, the in^outstanding,
creasing emphasis on research, the0wns
- The offer whichCof about $15 million a year and
world-wide
urge
to
raise - the, sidianes
standard of living, the pressures
result in- a sub¬
expires
^Feb.
2Y
,
of the cold war, now becoming i
tantial increase in employment
tended for additional 30 day pe
i_

department stores out for specific forecast. The distinguished
say

i, '

Aircraft Nuclear Engine. Laboratory (Canel) until Sept. 30, 1960.

^

strong business upturn in second half

a

1

.

"consumers hold the key"

Professor McNair declares

'

.

impressive array >c4
^ Fi ■
insurance
can
be presented to - The
show the strength of underlying
ed to buy stock
Compaiiy^has offe
Q
Marine
inflationary factors in our econ?f Northwestern Fne and Mairne
omy, and indeed in the world- insurance Co™Pa
Jw
-A Quite
arguments

of Business Administration

School

Graduate

Harvard

nn
on

Thursday, February 20,1958

.

justment will go and how long it
will last.

Lincoln Filene Professor of Retailing

cant

.

'

By MALCOLM P. McNAIR*

my

.

>

1958—A Critical Year

In

Chronicle

The Commercial and Financial

(842)
;

ISf n f
York o£tice

w

£

vision to Shulton, Iuc.
The sale
the recent
2 Wall Street,
activity, measured in terms of dol- substantial lay-offs in
Role of Federal Reserve
.*
does not include any~; real testate.
Detroit, and
T«?cli a rg e" of
lars, was somewhat greater than so on.
This is an opinion from which Bridgenort will, con+ipue. to
Significant also is the price
pro-./the Eastern
I had
anticipated, primarily be- situation in basic commodities.
am
afraid I shall have to dis- duce the Aerosoliline; for some
'c0rD0ratfg and
cause of price
advances; but it is Industrial raw materials
have associate myself, at least in con- six months afterrwhich time op->
unicinal
also true,
incidentally, that de- dropped more than 15% over the siderable
degree.
Last
year
I erations will ;be-moved*to the bon(a hnsiness
partment store sales during the
year, scrap steel is only about half envisioned
the
significant/ part Fine Chemicals Division plant.of
■;<Kas:"been
tirst half and also for the
year as
of its price a year ago, copper has which the policies of the1 Federal' Shulton in Clifton,' N. J.L Bridge^-?
\XmAl
b n n -Jk ced
a
*\r\*»4*
V\n*r/\
Iiirl lnof A/4
of
whole, were somewhat" lower dropped some"26%I~ '
""
Reserve Bo'ard might play in the.port official have
O

A

ttmvA

1

—-

-—

—

—

currently

—'

—

down

3

~—

16%,

»

c\r*r>f

—

t*

T~%

*t

•

t-j-

—1-1-

-«•- i

it-

-—

—*

\

_

••

.

'

*,

.

.

indicated,^{yite^stfcc'e.'eds:^

than the estimates 1
gave you. The

Earnings have felt the impact. 1957 business scene and
Paul
mam
fact, however, is that busiL/. SlPp'
Increasingly ■ the interim reports mented.an;tlie very uifihcult
ness
has
flattened
out
in
the 0f
wlh? reil1red as
companies,
lems of timing which were m-.-lmcs of -brass, aluminum ana.spe .o£ Jan j.
x.uiin/wiuv-1?, especially since the
t,"v'
months since
•nths
t.-i ,.j
in
.August, 1957, and middle of the
nniipv of combatting cial metals products. ■:>year, though some:;; Headcjuarcurr
■plvedUna P
[•rently gives quite unmistak- times
0f credit con--^

r>rol:°fbe"ts1.1$^"e-.

w

VI

u Wll»

X*

„

le
able evidence of
For

gross

billion.

.

a

downturn.

^

revealing, slightly h^er troll Aiinout,
trois.
trols. AUhou^
Although

iers

H. Callaway,

of.'The

Jr.

,

to"tbe *i. Th^^/Connecticut Tumnike'was VWof Mirhto be « ; TheVConnecticut Turnpike ^ was First of Mich
the calendar
year, with a terioration of profits. This trend one of those who think that the openedvto 'traffic-;on"JanN. 2.;>vlts'
iganV Corporation,/' underwriters,
national
product of $435 presumably is what the jittery Federal Reserve authorities waitedM29Tmile route- crosses 28
dealers in mutowns;t distributors and r^d(
UD

from

$415

sales volumes, show a marked devolumes, show a marked de-

hi'llinn

111

Rtftrk market Tine

hncn

too

fnr^actSntf

long

happen

I
1

1

before

,

relaxing

-

the

•

anH

cities

-V

incllldi'ntf 1 such

inaiof."U{«inol

1956

•

on/1

nnrnnr?

went
ment

</vi.

"

the yeai as a whole.
rp""YI
To be
cure, there were more factors adverse
to
department store sales
crowded into the second half
of
loi

n,

o

" „Ybh
Not all the

however.

way,

eeason

Nrfidenre- ?h»% ,dls"
continence, the? Christmas

was

transit
•cities

strikes
v

at

recent

months,

Nevertheless the slack-off

Roods,

which became noticeable
September on, was almost

from

certainly due to morq fundamental
causes.

.

•

Reviews Decline

During the end of 1957 and
early 1958 the evidences of business
deterioration have increas-

and

the

with the over-all rise in
to

a

total

year.

,

we

ldgh'of 1147°in'December «£

wo

seen

a




is an undertaking of

I

do

not

t

believe

;

fee

our prognostications are i earthshaking. Events rather than fore-

or.

will it be

a

longer type

;

ICWl

-

The short and Simple

■*

"R0"inff

seeml

" sta»ds "0W?
"

answer, of

course, is that at this stage
nobody

border.

interchanges

The
*

and"*'""^
i'•

For Sutro Bros.

Co.

: *

«

#.-r*:

.

.

^Manager d

ot tier pen. .ourger u

contract

-

with

Connecticut: partner in

charge.

.,

mcans in the majority.

tl is

j

of us in this crystal ball
business sbould kid ourselves that

months,

of

Q0

•
The Atomic Energy Commission.the research department. Step
vAs fo^ the influence of doleful has extended its cost-plus-fixed-^:H..~Floersheimer will continu

leXustme t Will
it be anotter
rolfin^readjustinent
with Zuptum in the second
six
acici-

hasi'

-

casts determine the trend; iand,
moreover, as I read the numerous
year-end predictions that have
aPPeared lately' 1 do not thillk
tbat tbe Pess™ists ate by any

vear

->

expeyiencm^.- manv sections of the highway will,
many secuons.oi/ine.nignway wui

areZVvSio! Sany

n

ANaU"n^SSRet^iiP Dry S feT,
•New York City,
tlie

exneriencing

.

Sreat importance.
.

commentators

"f^ considerabi/^Jiness readjustind
liave mt v/t
Se end of R- S ^
rribVM
avem-of neeitiuTdt/The
S NesuL relatS tothe cS!

mad

-.LfC-S ^ :S

Development

T9U5^n
a

more

>

to the Rhode Island

by t le Committee on Economle; accidents.•'»'>- ^SfaVHe?^B^J

billion

'

"

,

have

much

i

P™jcctecl stud^ofIhesermatters ofia^sttm ap^iniment

nersonal

of $343

should

we

with

thing we..are., noty

total

nnnnlne

in'con-

buying, especially in hard

two,

...

the calendar
whole' ^pta* Pace

year as a

mivn

turner

or

/--pj

up

mPi?,n*ep of for the
timeS.
'

year

v

of

abnormally short; and income

came

same

number

Z?VrfeLt!^r¥pU^ = ^
tarbed
xuioea

The

a

4-bi

housing starts has picked

new

in

.—highway
•

signs point the

,

CHAS.W. SCRANTON & CO.::
Members New York

>

Refas*m^f"

in another of those

"rolling read-

justments" that have occurred
Continued

on

page

at
33

Stock Exchange

V

New Haven :
Now York —REctor

•

Hartford

—

JAckson

Teletype NH

2-9377
7-2669

194

4, ,

.

Number 5718

187

Volume

.

.

The Commercial and Financial Chronicle

.

(843)

the

and

picture
v

was

5v'

!

]

y-";

5;

:

New York University.

is primarily attrib-

years

in

With the boom's termination and its ability to translate wage
'7 inflation into price inflation, Dr. Backman sees
wage-price

spiral unlikely/; The underlying phenomenon of labor costs
exceeding productivity, however, is found to leave us with the" ^
problem of wage inflation unless, "during this breathing spell, 1*

!

'f3/
J

we

.

.

devise

.

V inflation."

vV

.

programs

.

Author defines all labor

"mined

-

4; P

tiAn'

UTArVor

contracts,

costs

a

con-

v

a

fourth

being

years of

• -

on

the

b/Supplementary
Benefits*

lion workers

the

have

surveys

Chamber

However, a group
manufacturing companies
vided

data

for

each

7&

of

pro-

the

of

re-

con-

since

1947.

from

rose

five

$1.1

'•:/ Cent Per

Per Cent

Year

Payroll Hour

1947

18.4

12.9

23.8

14.9

30.9

16.9

1949

cur-

Only scattered

data

1953__.__.___

of Payroll

37.1

18.5

44.8

_v

1955___u

20.4

Clearly, the cost of fringes hasi

avail-

are

\

1951_

premium pay for Saturday and
Sunday work in continuous process industry like steel.

sec-

able *° show the relative impor- risen significantly for these leadin tance of the cost of fringe benefits, ing companies since 1947—and the

plans

were

°ne of th® most comprehensive rise would be still greater if data

now about 2% mil-

surveys is

covered ?

are

by

five

Unemployment

such

No

effect-in'19*5;

companies

the

been ai} increase in premium pay
f°r holidays and the introduction

the third

;; shift in 1945 to 6 and 9 cents
'; rently;9

of

in

Premium Pay for Holidays and

continu-

on

numbers

ported
ducted

Saturdays and Sundays: There has

,

industries, they have

process

of Commerce covered the experience of 1,000 companies.
Varying

surveys. It is instructive to trace
billion the rise in fringe costs for these
in 1945 to $3.6 billion in 1951 and 79 companies. This is shown in
$5.7 billion in 1956.
the following tabulation:

fare funds

to 15

now

is

increased from 4 cents

—

manufacturing

*

■

slightly lower
than in non-

that made biennially by were available for 1945 and 1957.

the Chamber of Commerce of the

Exclusive of legally required pay-

the

a

Amorifi<in

tV\A

A#

ous

-•

dverlap^ing

substantial improvement in the economic posihas been

of

"Shift Differentials:..In

contract periods, and
] c«l>cizes proposals to halt wage-price spiral,
t V"

o

'Ixhere

increases and

wave

some

;ond shift and 6 cents

including wages;
notes limitations of
productivity-measurement; observes unfor¬
tunate attributes of long-term wage contracts with
predeter-

,

week

vacation

of

service. 5.

to limit future wage

.

.

majority

third

granted, usually after 25

4
•

4;

In

week

"

were

contributions to pension and wel-

A

years.

4

in

added in most industries with

fewer than 5 years

service requirement of 10

a

beginning to be adopted.a

of vacation

were

growing

a

was

'

■

w

The benefits

15

Welfare Funds: There has been manufacturing industries,
large growth in health and wel->
In the 1955 survey, the Chamber

a

mi-

a

of

tracts.

•5y uted in this study to wages increasing faster than productivity
gains, with accompanying rise in labor unit costs, and to effect %
:'-.;Jof demand shaped by money supply and deficit financing.

v

Vesting right provisions

steadily.
are

1 week vacation for 1

-«■

<

fare plans with an increase in the
number of workers covered, improvement in benefits paid, greater
life insurance, and greater coverage of dependents. 9 Naturally, the
cost of these plans has also risen.
According to U. S. Department of
Commerce estimates,
employers'

4 vacations

Consumer price index rise in recent

r

•

1945, the general

companies provided 3
week vacations, usually after 15
years
of service.
By 1957, the
service requirements for two week

Ky DR. JULES BACKMAN *

,

Department of Economics, School of Commerce

.

In

of service and 2 for 5;

year

nority

/

paid holidays.4

more

b Vacations:

Prices: Post World War II

'

•

-

typical contract provided for

,*.7 or

:
.

'

■

•

.

War

rlnt<

In

i-\»

of the

been

for

pension and
welfare
the costs of which have
been
accounting for a steadily
larger proportion of total fringe

payroll funds,
.T

d mother'

am

~

then. V' Most

plans

r

y

improve-: |

?e/10d °J

in

some

of

the

1945-48

-

4 U.

S.

Af »airs, "Basic

on

Lor^in

lieSS

velocity of credit,

1954,

January

p.

1951,

ivnlanatinn'

»nsf

24;

(holidays, vacations, sick leave,
Profit slianrnrpayments7¥omise7

p.

2.2

Negotiations-Vacations; Holidays and

the'foliowhlg ' arcS' O )

the. postwar rise in prices
wages and real wages*
Wdges, ana real wages,

money

f2VthP naiZ)inena-

Work,"

Bulletin

No. 908-2,
Bureau of Na-

^wo

reau

j

convinced

am

V-in\ri

that

91:1-3; Buof National Affairs, what's New in

S.

of

Department

Labor,

f16. ,r!®f in ?rifCS-

1950," Monthly Labor Review, February
1951, p. 156; "What's New in Collective
Bargaining Negotiations and Contracts,"
op. cit., Oct. 18, 1957, p. 4; Ewan Clague,
"Problems
of
Pension
and
Welfare
Funds," in Emanuel stem (ed.), Pro-

79

to

at

a

companies

$2.20

much

Bureau
Pay Pro,

avpra«p
hnnrlv
a"d Contracts, op. cit; Nov. 16, 1956,
improvement in So--ucto.Der
real^average nouriy
93;ioa-b.
called fringe ^benefits and their
in Collective Bargain^i2^^ctunng
"What's New i
cost;;. (3):„the relationship between
l ^se by
Ji? compared... ing Negotiations and Contracts," op. cit.,
an
increases in labor icosts and gains w^h the rise ?of 103.9% in money Feb. 22, J957, p. 3.

9 "What's

New

in

Collective

Bargain-

ing Negotiations and Contracts,"

carpings during Jihe/same period.

and

57:5

19g6

57-288^289

indus:;^f7

more

rapid

lionrbr

n,rorQ0.0

rp^

tt

ine U-

o

nnvnincrc

rtpnartment

"

11 Chamber

States,

»p.

««.,

Nov.

29,

1957,

by

narrower

the

concept than used
have

Chamber,

^

bi]Hon

jn

Continued

This

announcement

is not

an

.

The

Uniled
Washing-

of Commerce of the

offer to sell

or a

New Issue

.'

in^meiited by other significant bene2 "fits/ However, it is much less senin sational
than ; the gains which

n

specScularlv from
1
increase^ nfmnv?!0 i!
risen
1Q4=;

or

•

no

sen^atini^i

sensational

tory.2

WaV

later, it

^

increases

Moreover,

alone

?Uq

rIh

12-vear

in

on

solicitation of an offer to buy these securities.

.

1

+

most
his-

our

supplemented by relatively
large
improvements
in
other benefits.

V1ww

February 18, 1958

;f.

was also

From 1945 to

using prices.

°dexe7!57h 77 ,TSUrr PriC°
rise

nse
may be -broken
three phases:
/V

:

.

102.8

.

1953
•

114.4

October 1957.

121.1

„

^or

76.9

__1

-

.

t rom

into

down

1917-1!K=100

(

1945./

,

..v

1945 to 1948, the main fac-

influencing the price rise

•A„

addresi

l»y

Dr.

Backman

was

before

ve^srty ™TSi..**tat'OM Co"fe,'enc,i' Uni.

,:Europ"ean

1 Various
been
experiencing

rif p5/4 few

a

years-

mnffnitndp

nf

countries

wage-price

For

a

have

spiral

summary,

in
see

2 From

1914

io,n

w

u

w

i

postwar rise was 'from 24°'cenu'an
11^^ 1(\r56 cents» a rise of 32 cents or
furt4»°"
°m. *920 to 1929, there was no
to
r»e.Ti"Se
money wages. From 1939
c

jnd

•

obwr

or

ma!? 371

"9%.

1967,

the rise

has

been

frpm

"our to $2.08, a rise of $1.45




Capital Notes due February 1,1973

-

other Labor Benefits
r,

...

,

-

Fringes

—

,

types-if-benefit

.y.

, i b

e r a

others

while

(Subordinated to all oilier Indebtedness of ibe Corporation)

1 i

payments

ze

some

A detachable warrant for the

have'

$5 per

d significantly

S S

have

duced on a wide scale for the first
time. The following is a capsule
description of some of the more
important changes in these bene¬
fits.
They are designed to show '
the broad scope of the changes

purchase of Class A Common Stock, Par Value

share, will be attached to each Note.

Price 100%

plus accrued interest

rather than to pinpoint the preciSe

magnitude

which

vary

the

of

among

.

changes

different

in-

The

Prospectus
such

may

!>e obtained in

of the Underwriters

any

State in which this announcement is circulated from

as may

legally offer the securities in such- State.

dustries and different localities.
Paid Holidays: At the end of the-

Paul 0. Kimball & €«.

^ar, a minority of companies gave
their

production

holidays.

Ill

1947,

Workers
many

paid

compa-

»p*i,i8 Street Journal> °ct- Z5' 1957» nies agreed to grant 6 paid holi1

6%%

thA

gams 111 other lab01 beneflts*
During the postwar period,

,

^

^

nf vicing
of

one

thP

Corporation of America

(Formerly People** Finance. Corporation)

■

'

.

...

are

will be noted

as

Consumer Finance

Peters, Writer & Cliristcuseii, Inc.

.

Dempsey-Tegeler & Co,

days although some companies did

^ive a lar§er number.
3 See

Jules

Backman,

By 1957,
Administered

Prices, Aug. 15,
1957, pp. 16-28; and
"Wage
Demands
Feed
Inflation,"
Natian's Business, November 1957, pp. 36-37,
64-68.

A. G. Edwards & Sons

$5.0

29

in Fringe Benefit Costs," Management
Record, November 1957, pp. 388-389.

$800,000
•

to

page

Ibid., pp. 29-31. See also National
Industrial Conference Board, "The Trend

offering is made only by the Prospectus.

incomes

money

considered. The role
played by the rise in labor costs
in/creating pressures for price
. .
-jj ^
considered after re-

was

timim,IO„

when

emerge

rw

Wnnhlin^nf

a

,r

$102

increased

1939

12

Fringe Benefits-1955,
p. 10.
t

which has been supple-

earnings

fnm~

pp.

1956,

ton,

is a.major, gain in real

1
•

-

nf

Department Ot LOHl-

estimates that total supple-

merce

;

earninpc:

than,

average llOUlly eaillingS.

.

•hourlv "

rate

as

as

.

:Averace

53.8%.

In fact, from 1947 to 1955„

■

improvement factor; (5) escalator7'
' ; v ' ; v77r- r°"sun,"A
V
clauses; (6) the role of long term.:7,; v:..7
•, Avera&e 1 xZL
^LrxaZIi '
contracts; and. (7),- the; effects of
hourly <1947-49(in 1947-49>,■
labor cost increases on prices dur-^^r
«i°?ors)
ing prosperity as compared- with - ^tober^
^ob
12U '
1.71s
recession. 77;
7
;-per cent change;.). 103.9
57.5 7 29.6
'■

Money Wages, Real Wages, and

from

rose

by

or

an,hour wer® m°recent increase ll»
th?n 0ne-lhh:d
large
the 77

224-d2e27&nd Company' Albany> 1956' pp* much

Union Agreement.," bet." iTVSsVT p.'i:
10 "Collective
ypa^ wages have risen much less Monthly Labor Review, October 1947, p
Bargaining Negotiations
than money wages. From 1945 to 423; "Collective Bargaining Negotiations and" Contracts/' op-" cit., November 30,
"
*

,

143.5%

hourly earnings

Fringe costs have been increasing

\i£eldSSL'tkll
Premium

the annual

by

rose

ments to wages and salaries, a

^

the

.;,productivily)'; (4)

these

wages.

Washington 1947, p. 2;
tional Affairs, op. cit., pp.

yearS)

of

$1.43

--

—

fringes

6.3

1.9

etc-

National

of

cost

while the average

Pai{* iest Perlo^s» lunch periods,

Department of Labor. Bureau
Statistics, "Collective Bargain-

Week-End

6 U.

in

3.6
6.3

etc.-

Patterns in Union Con-

1 examining ine
anatomy Of prices during the past
y'

*

vigorously.

b

Labor

of

Aftfr evnmSlif Pis'1

causa! factor in the price

of

During the 1947-1955 period, the

compensation

funds,

Bureau

Labor,

Bureau of

128;

workmen's
welfare

cos^s

added fringe costs of 26.4 cent,

5U.'S.

exces-

wage increases, and the busiboom Each eroun has its net

d~s^^^"em7he

ture

curity,

and unemployment compensation)

rghdipgrohdtUsStlS
sive

^wnicn nas oeen

given to

of

Department

-

Blame has been placed

,

Pension,

A

ruary,

creased

Jules Backman

wages
wages
and
a xj u
have reduced the real value Of the
other benefits obtained One oues-

a

and

:

the

gains

whiPh

of

-

% of

Payroll

companies • have increased

the

in-

pute.

y:. m o n e y

tinn
i on

nature

to

■

.

war

The causal forces in the 1955-57
rise has been subject to wide dis-

eroded-

n

;y.;flSPl

/;

rises-!

have

i

i

-

money

apparent

lb

*.

October 1957. The

S## ^widely "b
rec-,of ^
Ognized.
b/
Labor
Review,

•.

terms alone.

Price

•

in

'duced

spectacul sir"?.

than;suggested

v

1 oi

121.1

ever,

11

hour

a

liberalized. The costs

f

the gains.
haye been less b

longer

no

security;

^rtSei- numb®1 of workers are covered, and the benefits have been

'

ments.; H 0\V;r

are

with social

recorded'; ma-b
jor:

~7~ i-t.

.

have 4

benefits

Wilson, Johnson & Higgins

Metropolitan St. Louis Company

16

good business, is participating
.n the hunt for new drugs ana
ias been busily adding to the
>ome
2,400 products it mar¬
kets a 1 r e a d y. Last year's
jrofit is estimated at having
xeached a ' historical lh i g h

THE MARKET... AND YOU
By WALLACE STREETE

Tne

maritet

the

line

anything like

a

essen--cA&crwuci t;,

Ccime

lo.uic

111-

nor
tot stage good earnings, but was comgeneral rally, plicated by a rather A busy

flurry of rumors of some type
issues were of radical development in the
more than: routinely soft on cigaret- field:. Scr far such talk
dour hews. North-American,^has. been • without % substanwhere overly-optimistic; esti- tiatiom Nevertheless, it built;
nmtes^of iearnings. ran; into an up a more speculative interest
-

Only

a,

-

few

official" statement"; that

the than

•;*1 ;*%
*;
v
Tobaccos after their good
Jrerformanee: in recent months:
leached' a::point wheFe£ profittakers moved in and theywere1 at ; times clipped a bit,
although not drastically. The
drugs: had* a similar experience at times but;
againj without reacting in anything approaehinga spectacu 1 ar

warranted with the

was

March x^rter;,was i a:
veryv 1
one for;
the;compaiiy* was-an .lowing
easy item in .the aircrafts. ;
.> %

:folon

its heels.

■

.

>

tune with the easier money

market.: A newish: note

was

:

*

0f better than

this

a

dollar

a

share

tion

in

year

the* nature

since

basis

the

of

a

$4

is
that- the paper-shares showed
leaning heavily toward going
occasional
.stirrings on the jn for important diversificastrength *' side; * they haven t tion outside the tobacco busihad anything to celebrate in
ness.
months until; some glowing
Distillers' Stepped-Up
predicttons fromr greater utili¬
Diversification
zation of waste pulp were put
company

.

011

the record' at

trade

a

the year, it had been

months of

■

the control of the Board of Direc-

road's

have further eaten into the

facturers where the future is

position. The New Haven's tors. This group purchased the
long term program of improving--stock; W'ith the ;right to "put'' it
its equipment, particularly -of mo- back-to the railroad at from $70
tive power, modernization of way to $75 .a, share by December, 1959.
and yards
and greater over-all Obviously, the road does not have
cash

operation efficiency, so far has
paid off in keeping expenses within some reasonable degree of con-

and

year

costs of materials and

It

building

putes are on this year's cal¬
endar.
%%%■' ;>; ■ V
V, '■ r".

Unjike steel operations that
capacity to below
60%, operations of the
cement
companies in their
own
private recession de¬
clined from 100% ; to around
85 % of capacity. This could
be hiked easily if, as antici¬
pated, housing starts turn up
importantly and the actual
work
of
laying down the
roads/ contemplated in the
Federal highway program
speeds up to any degree.
;:

believed

is

land Cement is credited with

supplies,
the

of

amount to about 28% of the out^standing.preferred stock.

im¬

mark these davs nartieularlv

year before The liquor end
the l3revlous
year but the 1 ncrease in

Homestake-Mining, is impor-

get* Mped how
lgs s^ea^y-

rent, but is

tantly

a

bit wide of the

a

engaged

candidate for

ings

improvement

fair

earn-

this

a

vear

and the current dividend rate
indicates
A

a

return of

of

measure

over

the

5%.

market

neglect is the fact that the issue
hasn't ranged over an
area of as much as 10
points
for any year since 1955 and
that year its range was less
than 14
»

Vir

points.
rp

1

•

Profit-Taking

•

m

when

all

1

rr

Tobaccos

Tobaccos, which,
vored

^

'

in

uranium
and timber and coal through
its land holdings. Homestake
is

J. Kirk

a new young man¬

during the time
the present management took over
control in January, 1956, and the
present. Authority has been vested
in

team

of

number

a

each in

whole

being

J..Kirk Hopper is now associated

vice

consolidated

office, 2 Wall Street, it

under nounced.

authority, with

centration

special phases of the l

So

So

operations.
'

con-

Jacity

road

course




.

,

companies. These, of
largely dependent
011 auto production since such
ex¬ financing is so important to

Moreover, the chemical
&?»slon is a continmng one.
^ h e r e National Distillers
budgeted $4 /2 million for the
Peycrage division and $18.4
1^11:^1.on {or the chemical ac-

an

:

them.

Pacific

however, is

for

the

fa- years,

stock

was

for

a

dozen

article

do

not

coincide

Securities
?

Dcnart-

WM«Mm Wire lo

was regarded in,the
being in sorry shape.
To remedy this defect, some $1(B£ > >
Siaw art FuhdllkS
million was expended in 1957 on :,?'K';
■'
motive
power.
Some
30 FL-9
W. E. Hutton & Co., 14

as

locomotives

New
a

Haven

still

is

faced

Strpet, New York City, members

were

of the New York Stock Exchange,

have .announced the "installation
of a direct private wire to their
correspondent, Stewart, Eubanks,
Meyerson & Co.; members of the
New York Stock Exchange and
the.Pacific C.oa,st Stock Exchange,
with offices at 216 Montgomery
Street, San Francisco, Cal.
•

R. A.GustafsonWiih

Goodbody in Chicago
(Special to Tun Pinanciai

from

passenger

or

business

bined

almost equal to the

net

railway

from

come

freight

has.

son

all

Fi¬ ing

passenger losses the road has
embarked on a three point pro¬

The

New

Haven

officially

holds that commuter

service, as a
public liecessity, is essentially the
responsibility of the communities
that

use

it.

Consequently, some
being sought

form of subsidation is
as

part

problem
P

of

the

Tax

solution

to

this

.

obtaining

property tax
mainly in
Boston. Also, it is held,
passenger
fares should be placed on a more
reductions

the
for

department
thereto
Trust

and

Pittsbureh.
Pittsburgh,

was

last

with

prior

Northern

the

Brown, Wareing, Ball
Co. Formed in Houston
HOUSTON, Tex.
&

Tom

Ball, Jr

Robert D. Brown &
Ma gill, Wareing & Go

Co.,

and

Ball

&

Bank

year,

railroads

been

Company.

of

the

Co.,
have

Wareing,

Offices in ine
Southwest Building-

wjth

q0

some

realistic basis. Almost all

w ith

Salle

municipal bond
A E TVIastcn &

^relief "also i<ThpW merged to form Brown,

m.
relief also is being
sought and the road was success¬

ful in

of

Manager

in- 'r™mnv.
Company,

other

services. To combat these mount¬

gram.

Gustaf-

associated

become

Goodbodv & Co., 1 North La
in. street.
'He has recently

com—

operating
and

Ohronici.6)

CHICAGO, 111.—Ross A.
with

difficult passenger problem. The

loss

-

.

_

.

necessarily at any operate passenger service at a loss
with those of the and
the New Haven's problem
They are presented seems obvious from the fact, it
those of the author only.]
h^. the
highest percentage of

time

"Chronicle."
as

a

Equitable

:

■

power

1957 amounted to around $15 mil-

of

tvitli

■m

lion,

nance,

formerly villi

meni; of .teWork xffeInsurance

Two years ago, New Haven mo¬

course, are

some

was

Rnvir

increase in rail-

nance

growing
operation, including a life in¬
surance subsidiary organized
in 1956. The company is an
Lvities last year, this year important operator in the
"growth
of
Planf ca}} for only $3 million west and area"beenthe south¬
has
reporting
011. e. liquor expansion and
good earnings comparisons
a fat-$26 million to enlarge
plus a yield of around 512'%
^ chemical participation,
and could participate in any
*
*
*
spring upturn in auto sales.
A newcomer to the lime[The views expressed in this
light, including a new high

Rexall Drug. The
bleak company has been
enjoying

were

was

/'

the fi¬

Hopper

gross revenues.

Companies Favored
were

en-'

I

1

prior; ,hereto he had been affiii-

freight carloading to bolster

tive

an¬

institutional

more profitable jn theif JJew York office, and
the New

%
Of

Haven, like most of the nation s
carriers now is m a position where
it must have

Mr?

was

ill the Sales De-

is

Alex. Brovm & Sons of.Baltimore,

trailers.

Also in favor

He

in :an

allocation of

diesel-electric

Finance

1 '
investment firm's New York

in the
-

the President and Chairman.

on

Hopper With
Michigan

First of

presidents,
separate field, with the

a

industry

In this field General Port¬

of

up

agement

went from

-

one

portant steps taken has been the

labor dis¬

no

faced with higher wages and

was

1S

gofdht b^namaordeter-

island
only a

,

A diversification issue that

con¬

:

carries

nominal .amount of .freight,

being able to show the high¬
making rapid -strides in est profit margin of the major acquired and the road has 30 more
on order for this
year.
changing its basic nature is companies, as well as offer a of locomotive shuts off This type
the diesel
Gold Issues Neglected,
National Distillers & Chemyield of around 3%%. The engine and drops a "shoe" to the
Therehas; been little favor
jcaj From its large reliance
third rail upon entering New York
company
is well equipped
for gold !issue& foralongtune,
Central trackage for the balance
on
liquors, in which line it is with
plants to serve the rapid of the run into Grand Central Tereven:
gently.despite the;fact" the second largest domestic growth of the southwest por¬ minal. It precludes the
in
necessity
entity, the company has been tion of the company. Lone of changing locomotives from
where
the diesel-electric to the straight
busily spreading out into the Star, the
giant of them all, is
shelter
^supposedly is found chemical lines, and last year at least temporarily finished electric locomotive at New Haven.
when the economy, is faltering
Other new equipment placed in
upped the new line to where with its immediate
expansion, sexvice last year included three
otherwise.
^
^ ^
it provided 38% of operating the program having been tugboats, two steel carfloats, two
profit, a rise from 34% the
lightweight trains and 30 highway
completed last year.

vention.!

which

hurt- Railroad,

ing earnings for the full year. On
; the basis of results for the. earlier

With regards to short-term debt
much was accomplished last Year'
anticipated the road would be able Some portion was paid off * and
to show a black figure. However, part Was consolidated or extended,
drug issue;
the precipitous decline in the final,:The flood loans Amounting in ali
months produced a deficit, after to: $16 million obtained in 1955
% Cement Group's Prospects '
all taxes and charges., of $2,363,702. and
1956 " were being, serviced.
A mundane group recently This compared with a net income Workingcapital ' declined but
that vwas getting at. lot -of at¬ of $261,704 reported in 1956. %% capital-account showed • improveIf it had not been for economies men t. <
%
,» •
tention from market students
placed
into
effect
in ^earlier;:;.;;^e--Pos^blHty, ftf-alproxy conwithout, as yet — showing months, the final two months of ~tesfr still looms, but may be eomany spirited r market action last year and the first two months promised; A
syndicate holding
was the cement shares. Un¬ of this year would have shown more than. rtSijOOO- shares is beeven
larger losses which would lieved„ to be -considering seeking
like the durable goods manu¬

last

counting,

to where the
Steels or autos, and the utili$3 60 dividend should be
ties seemed to. have come -to covered
about
twice.
This
at least a resting place, after
naturally makes- it a candithey had done, superior work date for dividend liberalizam

New the exception of rthe Long

on the New York,
Haven & Hartford Railroad,

sharply

in history and earnings for
troubles loom,
the cement
195? artificially depressed by
companies had their trouble
a switch in inventory ac-

life in the for

was no, more

1953

final two-months

•

There

Thursday, February 20,

.

the cash to finance^such a transaction.; With, arrears of rnore than
10%, the preferred has the right
trol. In addition to the sudden to; elect two-thirds of- the Board
the
syndicate's
holdings
steel and motors where labor drop in freight traffic, the carrier and

-

rebounding occasionally.

.

freight traffic in the passenger revenue to total reveof 1957 declined nues than any other railroad, with

Railroad

•* v,*
*'
■ %
: \ vague, the cement shares
have prospects of lively de¬
These flareups did little to
mand for their principal prod¬
alter the facts and Reynolds
uct from increased use
in
Tobacco is right in the thick
of the industry uptrend with highway, utility and residen¬
tial construction work. And,
its sales crossing the billion
unlike the big segments like
dollar mark for the first time

*
*
fashion.
With the adjustment to
*
*
•
LIFO accounting out of the
Oils showed little life, sagway, the company is being
gmg moderately at times and projected to a profit increase
then

.

York, New Haven & Hartford Railroad Co.

New

which puts

the issue on a low
tially I marked time for the evitable profit-taking s t a g e timesharings base. In addi¬
most this week, holding the that gave some of them, par- tion, it. has yet to reach its
line with rather good success ticularfy Lo r i 11 a r d, some book value marketwise, The
considering f the • b us i n e s s rough moments. The story of yield of nearly 4
before
background.: It was neither Lorillard wasn't entirely due the- recent strength was an
inclined to find a base farther to the basic factors such, as
above-average ^return for a
&tocii>

down

Financial Chronicle

The Commercial and

(844)

Form Dieter & Town
CLEAN,
and

Louis

N.

Y.—Ralph Dieter
^

Town have

„

lormeu '

partnership, Dieter and r^oW.n1' s
engage in, a securities busii
The

firm

may

P. O. Box 451.

be

reached

Volume

187

Number 5718

.

.

.

The Commercial and Financial Chronicle

($45)

CREDIT

packaged for action!

1958

can

if

back it with confidence and action!

we

Credit

be

plays

one

of America's best years —

sj

11®

vital role in maintaining this

a

!i

confidence, and promoting business activity.

PC

to

u:

'yvyXsiNN*^^ys<,X j

goods and provide services.

move

To create fast

NHS

A

mm

JPiP9l[ living to unmatched heights, by supplying the
power

ip|

IJ

ff§ It has helped to bring America's standard of

buying action, credit has

'

:*?■>>>!»!jcfi

I|1 to be readily available. Associates specializes
in

putting credit in suitable packages for the
of automobiles

convenient buying

giving the dealer
moving his

a proven

..

thus

.

selling aid in

cars.

Last year

Associates provided

over

\M

billion dollars for the retail and wholesale

financing of automobiles. In addition to its
key role in automobile financing, each year
Associates furnishes millions of dollars to
American
for

industry

...

and to individuals

family needs.

Again throughout 1958 Associates is con¬
tinuing its significant service to our dynamic

economy—making available its ample finan¬
cial

to facilitate the

resources

movement of automotive

uninterrupted

and other products.

ASSOCIATES
CONDENSED

1957

Dec. 31,1957

$ 90,379,297

Marketable Securities

and

REPORT

SHEETS

$ 90,150,167

Common Stock Dividend

$711,007,982

receivables.........

$700,367,608

109,199,276

personal installment loans,
.

Less: Unearned discounts.

Reserve for losses.

,

,

72,102,682

75,048,9S9
48,888,754

62,836,287
40,278,730

$944,145,001
58,242,489

loans.

.

28,021,000

2,031,557

36,046,112

37,481,065

year...

payable

January 2, 1958
Accounts Payable, Accruals and

Wholesale motor vehicle short-term

Commercial and other receivables

$436,556,800

38,968,000
2,086,807

one

Dec. 31,1956

$410,355,800

Notes Payable, short-term.......
Term Notes due within

Retail motor vehicle installment

Direct and

Dec. 31,1957

Dec. 31,1956

Receivables:

•

BALANCE

LIABILITIES

ASSETS

Cash

FINANCIAL

CONSOLIDATED

$875,585,307
54,429,155

22,717,549

22,314,277

$863,184,963

.

Reserves

...........

Unearned Insurance Premiums

28,194,731

Preferred Stock.

182,300,000

80,034,000
20,250,000

65,600,000
22,500,000

.

Long-Term Notes
Subordinated Long-Term Notes

29,227,061

243,964,000

.

.

..

Common Stock.

32,104,720

31,254,720

85,932,953

70,058,804

$977,937,123

$905,031,007

.........

$798,841,875

Surplus
Total receivables, net

CONDENSED

,

CONSOLIDATED

24,372,863

16,038,965

$977,937,123

Other Assets

$905,031,007

INCOME STATEMENTS

Year Ended

-

>

.

Dec. 31,1957

Dec. 31,1956

$132,473,577

$122,457,993

Discount, interest, premiums and other
income.

Operating

96,397,124

expenses

Net income before Federal income tax

Net income.

common

share of
of

stock after payment

Commercial and Installment

$35,538,296

15,545,000

$19,508,296
INVESTMENT

ASSOCIATES
ASSOCIATES

preferred dividends




Financing

16,030,000

$20,531,453

Provision for Federal income tax.......

Consolidated net earnings per

86,919,697

$36,076,453

DISCOUNT
and

HOME

OFFICE

Other
•

COMPANY

CORPORATION

Subsidiaries

SOUTH

BEND,

INDIANA

17

Commercial and Financial Chronicle

The

18

.

.

.

Thursday, February

20

1955

(846)
would be absurd if the Conserva¬

Government

tive

Employers and Unions
Threaten Conservative Rule
By PAUL EINZIG

Even

things.

;

CONSOLIDATIONS
NEW BRANCHES
NEW OFFICERS, ETC,

•
'

CAPITALIZATIONS

.;

has-been

1951

in

and

A REVISED
"

largely the outcome of the Socialist devaluation of 1949. A country ^.^ive'former Assistant

employers gain support for resisting wage increases by sacri¬
ficing a greater part of their profits in cutting prices back ~~"
substantially. Dr. Einzig attributes current inflation to cur¬

increase

stanuai

01

ievei.

11s price

Treasur- • has been elected Vice-President J
cirt

1

1

J

X

inflation and, two, that

Socialist Government's election means

au-

iwk,

rsew

luannaiian. jauiik,

O

+l,W

'

•„

W

"l W

.

v

^_v .•

'cofding to. an annoimcemeriL Feb. ;£r Edward
Nash,: President-of
such
as
17.,,by f: George' Champion,: Presi- The *LafayetteNational Bank
international trade and firianpi&K
Brooklyn, N. Y.,%:annqunced the
relations, does not exist in jsLyad-* '.Those promoted:' were Ttiotfias tfbll<%ing ;np£m^
jp

unwillingness to resist wage demands has "done as fully as
much as trade unions" in bringing about non-stop price rise.

price level' of a country
Britain, with extensive

the

For

devaluation of 1949, and to ironical employers whose

rency

office

sumed

Einzig recommends two
One, that the public be told, at long last, that a

by-election defeat, British observer

,

a

News About Banks

place since the Conservatives as-:

the disastrous Conservative Party's recent

on

be,re¬

greatly accelerated pace."
the inflation that has " taken

at

ceed

Commenting

to

were

jected by tne country for its: inability to stop inflation, -seeing •
that under a Socialist Government
inflation would be certain to pro->;

it has to bear some relation Bellinger and Reginald Russell in Knowles^frpm • Assistant Viceworld price level. - If .> its ^ Bank's United" States departs .President- to^Vic e.^President,
level is reduced m terms of • ment," ^
nA/ Howland a n d >Gredit~;WiUia^
could be made to realize that the foreign currencies as a result of a Martm J/ Logan, Jr. in the, metro- Assistant : Cashier to Assistant
Government succeeded in estab- devaluation, there is bound to be
po]itah department, and Edward Vice - President
insurance >prelishing stability and to combine a trend towards upward adjust-,
j Pllclps in the personnel achnin- m-urn financing department; Her*
it with prosperity, the general ment. Unless the prices of other,, istration department.
: : v-' rnan • C.
Kipp, f r o m; branch,
election might not bring the So- countries happen to decline to a
:vNewAssistant Treasurers"also Manager to Assistant Vice-Presicialists to power. But time is bccorresponding degree.
:
- appointed
were
Kenneth T: dent-operational. duties at the
coming
short.
At
the present
The Socialist equalitarian redis- 'Hoeck? Jr., Louis J. Kessler, John main office; and Edward J. Slatmoment the rise in the cost of
tribution of income would greatly^ E: -: Staiford
and
Gladstone
T. tery, from Assistant branch Manliving is still going on. It would
aggravate inflation, becauseXa Whitman.
Justin E. Koch: was ager to Manager ,of the 69 Lafayhave to be halted and reversed
larger proportion of smaller in-. named a vault officer and :Alvin ette AvPnVe/office^*
; v 11
for at least 12 months in order to
comes is spent and a smaller pro-J j#
Bosgang-* and .; Edward': Kahn
satisfy the public that the change
re-f ; The:KFirst' National: Bank an
is of a lasting character. And it Portion is saved. The decline in were designated electronics
the rate of saving would be ac- Search-officers. ^
< ' ♦
:
Trust Company of Walton, Wal
would take some time before the
companied by an increase in the ^
^^
^ ton,New:-;.,York,r with commoi
recovery
that would follow two
uum;

the

to

price

LONDON, Eng.—The immediate

by-election,
Government's sup-

result of the Rochdale

the

which

at

porter

not

defeated

easily

was

the

by

only

Socialist

can-

didate

but

the

by

even

candi-

Liberal

date,

was

a

in

setback

sterling and

a

weak-

further

ening of the
Ex-

Stock

change.
markets
that

,

-

•

this

re-

„

;

,

^

■

,

Paradoxical Employers

,

Labor

Government

the

to the

Board

rtf8Xrl?no- !vnn?d Vnn^verv
steihn„ would

feme of
iense

the charter,of The First Nations

Mr- EiSer ioi»re<1 Manufacturers

-

laifcy^y-

Bank and Trust Company of Wal

general election, of a Socialist Government has
Trust Compally in 1928 as a clerk
low in then list of piioiities. and
^
messenger
He "was
apThe
effect
was,
however, mod- done its best to undermine the
another devaluation would accel-;
£:
erate
and
short-lived,
and
a position of the Conservative reerate the rise in prices
The^So-'P°intcd a chief clerk in 1945- an
cteadier .tone. set
in within 24 gime.
Employers, through their
eiaUsts
favmrite idea
that ttis ^stehA Manager in W49
a
hours.
This was because Minis- unwillingness to resist inflationafter

next

the

ton and under the title "The Na

n„«„i

and

spokesmen

fectly

plain

it per- ary wage demands, have done
not the fully as much as trade unions to-

made

it

that

is

decide

wards bringing about the nonstop

early general elec-

rise in prices which has discredited their government in the coun¬

Cautions Against Premature Sales

line of least resistance in face of

intention

Government's
in favor of

an

to

tion.

The

try.

temptation to

take the

claims, and to outbid each
the Prime Minister is entitled to other for the scarce manpower,
the

Under

carry

Constitution

British

for five years even if it

on

becomes obvious that his Govern-

longer enjoys the confideuce of the majority of the elecment

no

long as he commands a
in the House of Commons. And the Conservative Party
could afford to lose quite a few

torate,

wage

so

was

the

in

Government
a

the

before

House

would cease to have

working majority.

The position

is, therefore, that, unless some
unexpected
development
should
make
an
early election appear

expedient, there will be no genelection

eral

another

for

two

cal controls
cuiiHuia

EIrt
aosuici.

.

is

could

trols

,

at the

the next Labour Government intends to adopt.
"
_

,

In order to avoid a Socialist victory at the next election the Goveminent will have to achieve a
change in the attitude of employers. It would be well worth their
while for business firms to sacri-

For this reason, it would fiee the greater part of their profbe, to say the least, premature.to its during the next two years, by
sell sterling or British stocks in making substantial cuts in their
1958 in anticipation of the advent prices. If this is done by a suffiof a Socialist Government in 1960. cierit number of larger firms it
After the first unfavorable reac-- would bring about a decline in the

comes

5

or

to

.-not less thai

All

appear
self-evl- HaroldlH. Helni, Chairmaii,;]Mr^Oneida, New York,^and
yet the Government Mendell will become" associated National Bank and
Conservative Party has with the Bank's offices in: - the pany,
Syracuse,
New

this

may

,

And

dent.

- •

a

case

this

in

also

effects

which

respect, • in
to be

Meyer Treasurer..

by-election re-

disastrous

the

the increased

Nevertheless,

probability

of a

change of Govis likely

to preoptimism about
the British economic prospects. It

eminent in

1960

vent unwarranted

is

true, there is nothing to

vent

from

nomic

conditions

such

trend.

of

pre-

sterling and British stocks
booming if immediate ecoa

should

Towards

the

favor
close

1959, if not before, holders of

sterling

of

and

whether

British

Government

stocks—
loans

or

blessing in disguise.

Mobil

g. l

with

ciated

—
are likely to
begin,
however, to play for safety at all
cost. And many of the more cautious holders may feel inclined

equities

^

Janney,

Dulles

&

-

the Government has not succeeded

much earlier, while the so far in obtaining their cooperagoing is good.
tion in this sense. The National
Possibly events may prove them Union of Manufacturers emphatito
bev wrong.
After all, public cally rejected the Government's
opinion is liable to change un- recent appeal to cut their prices,
expectedly, and it is by no means Possibly the shock of the Rochdale
impossible that within the next by-election may induce tlmm to
two years the Conservative Party reconsider their short-sighted atmay
restore its popularity.
To titude.
that end it would be necessary,
A grave omission on the part
however, to bring inflation to 'a of the Government has been its

to get out

halt
ry

If

and to

resume

non-inflation-

expansion of production.
by

i960

the




British

public

failure to enlighten public opinion

about

the

inherently inflationary

character of Socialist policies.

It

"::^
of General y
a {Corporation,
Corporation, has: been elected 5
SaviiW^Director ;of th'erfGenesee • Yallejl

eleHiefp11

was

Central

the

of

in

Bank

York,

New

Feb. 13 at the age

on

died

^Ts

bf 59.

banjks in the country.

Dinner
the

was

Grand

held

The

•1'

-

■

employee organ¬
ization composed of veterans with
more than
25 years service with
the
Bank,
elected
Archer
W.
Bachman, Pension Trust Division
Club,

Assistant

an

Vice-President,

as

its

1958 President. Named Vice-Pres¬

idents

Bank's

Battles, Inc.,

1401 Walnut Street,

members

the

of

Philadelphia

New

York

Baltimore

-

of

and

Stock

the

John

were:

L.

Club

for

the

year

Potterfield,. of the
Division

Collection

and

Mary E. Oliverio, with the Bank
Development Division. Ernest F.

of

Bray,

Trust

Bankers

Com¬

Exchanges, in the trading depart¬

pany's London Office, was named

ment.

a

Mr.

Wallingford

with

merly

the

was

trading

for-

depart-

Vice-President

si: '

1

August
Haselbauer, Karl Hinke and Mat
tin J. Travers were elected Senifl
Galvin,

John " M.

Marin'

the

of

for

the

year,

representing the overseas branch,

Vice

Presidents

Trust

More than 700

dorf-Astoria Hotel.
attended.

Wal-

of the

Ballroom

'-i*

(.vr

.]•

15th

Century VClub
on
Feb. 18, in

Quarter

Co., of Western New

Yon

Buffalo.
si:

,

A merger

si:

sj:

issuj

certificate was

Office of tc'l
Comptroller of the Currency, ap;
proving and making effective^
of the close of business Jan.
the merger of National Bank
Jan.

20

the

by

Commerce

Portland,

of

with

Maine,

common

Portlaii
stock

wn I

$1,250,000.^

TBI

Of

stock

common

merger

charter

Na¬

into First Portland
Portland, Maine,

$550,000,

tional Bank,

under

effected

was

title

and

'First

of

Port*

Bank.

land National

ment of H. M.

pany,

Byllesby and CornIncorporated.

John
elected

Morgan Adds to Staff
(Special to The Financial Chronicle) '

LOS ANGELES, Calif.—Edward

Francis
a

Gehan, has been

Director of the Bank of

North America, New
*

!l:

York.

of the Board

of the Bowery

Savings Bank, New York, age 76,

Morgan & Co., 634 South Spring

died at Winter Park,

Street,

members of the Pacific
Exchange. He was
formerly with the Edwards In-

17, 1958.

vestment

ant

Stock

Co.

and

prior

thereto

with John M. Barbour & Co.

*
Miss

Dorcas

advertising

and

Fla.,'on

*
*
Campbell,

Feb.

Assistin charge of
public relations,

Vice-President

Frederick,
x

of

Hagemann,
&

-

the

Bank of Boston,
on Feb. 18 the

tion of John J.
sistant

Jr.
,

Rockland-Atw-

announced

Edison has become connected with

Coast

H.

President

National

*.

Henry Breure, Honorary Chairman

\

and large*|

oldest

the

onc^of

,

Annual

*in. Mjd

Mali--Sy / J ff )?w
lan<f -bank. / Founded in 1853,

Company's

Trust

Valley k'Unio

Genesee
_
..

si:

*

Bankers

Rochestct|

Trust Company,

Eugene.C..Wyatt, an Assi&taiv
Vice-President of the Chase

; hattan

Charles Wallingford

.

-

Trustee

PHILADELPHIA, Pa.—Charles
Wallmglord has become asso-

five years' time limit expires,
,

^etired;?^^^':^•

Go

Oil

Wallingford With
B^kfNew Y^rkr ^
Janney, Dulles Go.
L.

Hoit, Executive Vice-

Jennings,
Chairman of the Board of Socony
lairman

ernment with an onportunity to
have a general election before the

Suggests Governmental Action
It is indeed amazing that, although most employers are supporters of the Conservative Party,

,

Gordon G.

B.: Brewster

manding wage increases. Should
they continue to do so nevertheless,- and should the resistance of
employers to such demands lead
to major strikes, the sympathy of
the public would, turn strongly
against the Socialists who have
always identified themselves with
wage demands. Such a change of
sentiment would provide the Gov-

„

,

it. would prove

operators realized this,. price level.
The trade unions
and the immediate adverse effect would then have no excuse for deof

■ •:».

,

a

dividebvilito^l^Pb0.sharesm
stock,of the^pa^^valu? of$l

a

most

suit ceased to operate.

-

,

10%. But when iit;::^,e
ln
coi -*.powerful trend physi-tln^r jof^Lmcoln.Place.
mon
cal controls would be Helpless;~as '.
•*.'r
indeed they were helpless during % Oliver M. Mendell has been ap-; ;divided profits ol
the Socialist regime of 1945-51. '>£ pointed
Assistant % Secretary < of: $250,000.
; :
Chemical Corn;..Exchange. 'Bank,r.,.-,;..,:
Little Public Awareness
New York, it was announced by a Madison
, County
Trust Co

of, say

years.

tion

consolidated Bank wi

a-

„

inflatibn'

disguise an

..r

Lincoh
Trust Coil'
and
the
Yori.
done very little to make the pub- Borough of Queens. ~^
merged under charter and title of
lie aware of these facts. Possibly
r' r- ..the latter bank.. A branch vas
inadequate compensation, to crip- the shock of the Rochdale by-elec-lT;
Underwriters TrustCo.,* New?bstablisheid.-in • tbe,.?ormer location
plmg taxation, and to various
tion result may produce salutary York,
elected
Christopher
F.
Maclison County Trust Co.
other anti-capitalist policies that

only themselves
to blame if, as a result of their
short-sighted attitude, they will
cbe exposed to nationalization with
They will have

majority

seats

too strong for them to resist,

'im110'1 Manager in 1955.
v .■ /^..AtAhe-e
SS '* At- -present-,. Mr.,-Eiger.,;.is. as- dation"the
oucn con■

)C
flood could be stemmed bv lihvsil'uj

i,u,

Ba»k York.
Delaware County
New
Walton, effective date .of, consoli

.

terial

effective as of thlif i

close of business January 31. Thi
consolidation was, effected uiide:

Flanigan, Chairman of the
"
* •
*
:'v'- >. i;:-

c

ace

policy of over-full employ-

"stock of -.$150,000; and. The Na
tional Bank of Andes, Andes;. Nev
Vork,% with. >• common; iStock ;rv0

announceCby..Horr :$4pjpOO,snerged

New York, is

The Socialists would ieveit,
The

fpet
feet.

lose the most through the advent

of

return

a

SocM^"wou?H

.

It is a strange irony of fate that
the class of people who stand to

owed
Paul Einzig

capital cxpendituie in puiThe ^-appointment:'"; of' Abraham!!
suance of the -ambitious
^ociali^
ag. Assistant' .Secretary ,of
investment policies.
This ^wbulcL 'Maimfacturers . Trust' Company^

could

The years ol'economic stagnation
felt make itself felt,

foreshad-

suit

late of

Pr01]j

Marshall Ron1

Branch

oi

Manager

Copley Square Office,

to

Cashier, and Manager

of that

fice.
* -."

The

®>: /

:

Newark, on Feb.. 16

"

"

r

Bank v®
a the
announce?

National
State
^.
"

"

••

Number5718

187

Volume

The Commercial and Financial Chronicle

. . .

to

Kirk-Assistant Cashier.

appointment "of . Jaines L.
Patrick, Jr. as
,»j

•

«.

.

J The

*

:!:

$

and

First National Bank and
Company
of Kearny,

Trust

Mr. Halbouty,

the board.
Mr.

were

They

are

elected to

N. Y. Cancer Committee

James Noel,

Both Mr,; Wells

Meyer.

Fiduciary Group

have

resigned from the board and

from

Kearny,, New Jersey,., increased
its common
capital •; stock from

association with the Bank. V

;///:;/x :-'*x vx;

(847)

,

;

Chairmen

for

Group
Cancer

■

of

the

the

t

New

Committee's

Fiduciary
City-

York
1958

April

hold Finance

Corporation, Finance
Companies
Division;
Willard F. Place, President of Ex¬
celsior
Savings
Bank,
Savings
Loan

and

Bank

Division; Louis T. Boecher,

President
eral

of

Knickerbocker

Directors

of

Board

Cancer

the

of

Crusade." have

been

ap¬

Savings

and

Loan

Committee is seeking $1,616,000 as
share of the Society's nation¬

its

wide
cer

goal of $30,000,000 for can¬
Research, Education and Serv¬

ice.

Fed¬

Associa¬

Savings and Loan Associa¬
Division; and Timothy R.
El Paso National Bank, El Paso, pointed,
it
was
announced.: by
Stearns,
President
of
Textile
John Heed Kilpatrick, President
Texas, reports an increase in the
Banking Company, Inc., Factors
and
Chairman of the Board of
par.'value $25.) .V;";/V.//.,//:": capital' from $3,000,000 to $4,000,-;;
Division, will serve with the 1958
the Committee.
:
?
>'
' '/V
;"'/x ^ 000 effective Jan. 23, 1958 by
April Cancer 'Crusade.
v
John - S. Taber, Vice-President
The First Pennsylvania Bank¬
The
New
York
City Cancer
16%% stock dividend.and-sale of
of Bankers Trust Company, Banks
ing : &
Trust Co.,- Philadelphia,
25,000 new shares of $20 par value and Trust Companies Division; T. Committee is the local division of
pa ,t elected f Harry,». A., Batten,
•
F..Breen, Vice-President of House¬ the American Cancer Society. The
chairman of N. W. Ayer & Son, stock at $50 a share.
The

$500,000 to-$600,000 -by a stock
dividend effective Feb.; 4. .(Num¬
ber of shares outstanding—24,000,

Form E. W. Heathcote Co.

tion,

EL

tion

.

.

PASO, Tex.—E. W. Heath¬

cote & Co.

has been formed with

offices at 618 East Yandell Boule¬
vard

to

in

engage

business.

Partners
and

Heathcote
Heathcote.

formerly

a

a
are

Mary

Mr.

securities
Earl

E.

G.

Heathcote

William P. Drake, President
Pennsalt Chemicals Corp., and
James M. Skinner, Jr.,* President
of Philco Corp. Directors.
John.
W. Thorn, James F. Bodine, Wil¬
liam M. Bradford,- Norman F. S.
Russell, Jr., and William J. Boland
were ; elected '■? Vice
Presidents.
Anthony G. Felix Jr., was elected
Vice President and Secretary and
William. A. ' Hoover, Vice Presi¬
of

•••;

Pennsylvania National
McKeesport, Pa., has ap¬

Western

Bank,

pointed Edward Soroka trust
estmentbffleer for its 1 67btanch
office operation,
announcement was;
President! M. AxCan-

rThe

WPNB

celliere.

.! -/••'

•

„•v.:

' '•

■|: Mr. Soroka. was formerly trustinvestment officer of Peoples First
National Bank and Trust Com¬

? X*-.

pany.

jr George W. Bartrem was elected
•vtyice President in charge of new

•

& Trust r

-accounts in Potter Bank

Pa., in the com-

J

j^mercial department. Richard A.
.(Brown, Jr., was. elected Assistant

'

sCo., Pittsburgh,

Secretary and Assistant Treasurer.
«

/

i

*

'By a stock dividend, the cona¬

capital stock of the Security

tion

lank, Washington, D. C., was inTeased from

$1,000,000 to $1,100,Feb. 6, (Number oi
outstanding—44,000 shares*/
value $25). ""
;

00 effective

hares
ar

.

L'

*

The

4

" 4

*

'

Savings

Peoples
Mount

ompany,

Bank

Gilead,

changed > its
Peoples Bank.

title

as

Ohio,
The

to

The Bank of Edenton, Edenton,
North Carolina, and Peoples Bank

Trust Company, Rocky
orth

Carolina,

charter
ank.

in

A

the

branch

former

Mount,

merged 1 under

title

and

of

latter

the

established

was

location

of

The

Bank of Edenton.1

The

National

merce,

of

Bank

Houston,Texas,

Com¬

elected

Marvin K.- Collie President, ana
Robert P. Doherty, formerly President

elected

was

chief

executive

Chairman
officer.

■

and

A.

D.

Simpson, former Vice Chairman,
was

elected

honorary

to

the

post

*

:S

common

of

active
'

-

The
The

new

Chairman /with

Status.

❖

.

capital

stock

of

Texas

City National Bank
City, Texas, was increased

lexas

from

$250,000

to

$350,000

by

a

'

stock dividend and from
$350,000
to

$400,000 by sale of

effective,. "Feb.

shares

5,

new

stock

(Number

"THANKS

of

those early times
when the ancients sipped beer through
straws-—to today's handy, sanitary

It's

outstanding—2,000 shares.

Par value

$20).

-

*

►

The

*

*

"Caldwell

National

Active Feb. 3.
.

r

-

*

•
.

.'

*

Controlling

.

.

interest

in

man - Michel T. - Halbouty.

riches

the

and

was-

a

elected

was

Frank S.

-r

Executive"1

Vice-President,
wo new

directors, in addition"


our

bursements

'•

;

■
•'

-

industry—which

economy

of

some

en¬

by annual dis¬

supply in vast quantities. And that's
where our Weir ton Steel Company
comes

in—as

a

major supplier of both

electrolytic and

hot-dipped tin plate.

Of course,
many

Steel

tin plate is just one of the

products made by National
Corporation. Our research and

production

men

work closely with
fields to provide

customers in many

better steels for the better
of all

U.S.

industry.

Corporation, Grant Building, Pitts¬
burgh, Pennsylvania.

billion;—

$3.5

ease

because of its low cost, its
its availability.

filled

a

In fact, the industry
cans of beer and

billion
one-half pounds of steel and tin.

ale in 1956,

and

for steel
strength,

record 8 billion

using

more

than

a

OWNING AND

Stran-Steel

Weirton Steel Company
Hanna Iron Ore Company
•.National Steel Products Company •

OPERATING Great Lakes

Corporation

•

Steel Corporation

The Hanna Furnace Corporation •

National Mines

Corporation

products

National Steel

for beer in cans
of handling and storage.

And brewers themselves go
-

f

'i

used for all prod¬
ucts in the U.S. each year? More than
40 billion, a preponderant majority
containing foods and beverages. This
means that tin plate must be in constant
How many cans are

finds householders go
for its

At

Bank's board of

Rectors, Mr. Halbouty
cted President
eyer

;

The brewing

by oil¬

j

'

-

*

Side State
Bank, Houston, /
Jxas, has been purchased

^ting of the

corrosion).

resist

Bank"

wth

'

far cry from

a

packaging of beer in cans of steel (the
"tin" can is 99% steel tin-coated to

Caldwell National Bank,"

aldwell,- Texas, changed its title
t0

donft mind if I do.,M

-

-

•

W.

C.
was

partner in Heathcote,

Ziegler & Co.-

Ine •

dent and Treasurer.

19

20

would not be

Stocks

Outlook Foi
Mr. HaddadY survey4 of

Believes

textile industry is

on

the encouraging

that this year's consumer purchases will significantly
durables to soft goods.

shift from

are

the

attitude

talk

(1)

Washington

There

for

ceded that

a

base has been reached
and that we can

these stocks

toward,

upturn in
earnings of thesecompanies.
Naturally,1 if our economy

the

an

whole does not

as a

from its

recover

period of "rolling readjust¬
textile

ment" t then

shares

will

Government

nomic expansion pattern that can

the

discount
;

'talk

a

by

Haddad

Mr.

assume

before

JJew Bedford Textile Club of New York,
Feb. 6,1958.

let

me

say

that

at Harris, Upham &

Co. feel
that consumers during the greater
part of this year may be expected
to apply the major portion of
their buying power to soft goods
instead of to durables with which
they are well equipped.
To us
this means a gradual recovery in
we

when the Federal Reserve Board

lowered

conclusion

In

give us a clue to our economic
upturn: machine tool orders and
steel production.
A reversal in
business was officially recognized
--

reasonable to

are

will become easier

the changes will be only in one
direction—up."

suffer accordingly. There are two
sensitive indicators of our eco¬

rate.

seems

expenditures
already told

from

page

demand for both cotton and syn¬
thetic textiles—and for blends.

the months

as

Disposable income will be large
*n spite of unemployment because
wages in '58 will be higher than
in '57.

of

We do know that
w
T

industries

made

a

number

contracts

in

previous

years which grant labor
increases in 1958. New contracts

will be made in

6

1958

and

in

all

increase.

(5) It is quite certain that Social

Security benefits by the Govern¬
increase."

ment will

Conclusions About the Economy
And the Textiie-Appaiel Industry
reassert themselves.

People will
hedge against infla¬
tion. They will buy more freely
and naturally the course of busi¬
ness will be changed. But I do not
expect it to happen.
Should it happen, then the pre¬
dictions I have made obviously are

endeavor to

not correct.
Bases for Conclusions

These
well

reasons:

that

(2) The strong forces and the
measures that will be taken by
Government that will prevent the
decline from going too far and
ultimately will reverse the course.
(3) The strong stabilizing forces
in existence in

our

augur

-

7

,

mobiles and similar durable

econ¬

goods.

omy.

This industry, therefore,

will decrease.

Weak Economic Forces

l.et

us

look

first

at

the

(3)
weak

are

down.

a

Why does
business activity
answer

is

expect that
will decrease?

one

follows:

as

(1) Capital expenditures by corporations will decrease.
It has
been estimated that capital ex¬
penditures will decrease by five
or seven per cent.
It is possible
that the decline may be greater
for these reasons:

(a)

The, productive capacity

is much greater than the present

effective demand. \

(b) Competition is very keen
and becoming keener,

(c) There is

»

*

r

strong squeeze
on the margin of profit.
(d) The economic climate has
FRASER
undergone a change.
a

Digitized for


An effort will be made to
inventories.
Already we

reduce

forces that will pull the economy

The

not

(a) Automobile prices are too
high.
(b) Many people are heavily
indebted and they will endeavor
during 1958 to pay off for the
cars they bought in 1955.
(c) Overtime payment has
disappeared. Twilight work has
disappeared.
This does not
augur well for the sale of auto¬

analysis of these forces:
forces

do

for

capital expenditures by
corporations and, therefore, one
may expect that these expendi¬
tures will go down and have an
impact on the economy of the
country.
(2) The sale of durable goods
will decrease.
This applies primarily to automobiles for these

On what'did i base my conclu¬
sion? My conclusion is based on

(1) That We have
will pull us down.

conditions

witnessing the

beginning

of

about three

And while

an

now, 175 mil¬

lion

lion

credit and a reduction in interest

\ \

the

of

ment

-A

market,

equity

po¬

developments, and in part
it will depend on the attitude of
manufacturers and distributors. If
litical

manufacturers and distributors put
dark glasses and they
anything but gloom and

their

on

can't

see

year frpm today, three mil¬
people consisting primarily
babies will all be good cus¬

of

a

tomers of yours.

■

«

The standard of living of
the people is rising. We are be¬
coming a nation of middle class
people. One of the characteristics
of the middle class people is the
principle you have to live up to
the Joneses, and this is a para¬
dise for a
smart
retailer. The
middle class is the greatest spend¬
ing machine ever invented by the
(2)

t

perdition, then obviously business
activity will be adversely affected. Lord.

of

decline in inventories and in all

probability this tendency will con¬
tinue, and I need not tell you that

the

same

extent

as

industrial

ac¬

tivity, that people have vast sav¬
ings at their disposal, that the
in turn will have a favorable ef¬
population is increasing, that this
fect on public works and later on, is not a
depression but merely a
on
housing, both of which will readjustment, and they put their
have a favorable impact on the shoulders to the wheel and they
economy of the country.
work harder, they will not only
(4) Disposable income in the meet the quotas, but also they will
hands of the people will be large, influence the
spending of other
and that is the most important
people.
factor in which you are interested,
And finally, it will depend • on

an

are

creating a general in¬
in the availability of bank

crease

Summary

go by. Interest rates will decline.
Bond prices will go up. And this

probability they will also witness

Continued

rate

annum.

All these in the long run augur
coming months.
On the other hand, if they real¬
(3) Money rates already have ize that the disposable income of well for the textile industry and
decreased and in all probability the people will not decrease to for the apparel industry.

yond.
Mr. Love, of Burlington
Industries, at the annual stock¬
holders meeting today said: "Cur¬
rent textile prices are so near
rock bottom that if changes oc¬
it

annual

an

degree of the decline and million per
of the decline will increase in

thereby

(2) Public works will increase
materially. There is still a great
pent-up demand for roads, high¬
ways, for schools, for hospitals,
and in all probability public works
expenditures will increase in the

personally interviewed some
of the top men in the textile industry and am pleased to report
a
genuine feeling of enthusiasm
among them for the outlook on
textiles for the next year and be¬

cur

(1) The population is increasing

at

duration

the

certain that irrespective of the
budget figures, the deficit for the
fiscal year 1958-59 will be larger.

is

of

I

Emil N. Haddad

being recom¬

that

Decline

Degree of the
The

rates.

now

mended

an

about it for these reasons:

to an end.

come

pushing

they are:

cotton,

subsidy
payments to cotton growers to
reduce the gap between U. S. and
world prices.
This would then
mean tight acreage restrictions.

and

are

*From

considerations.
in

the problems
are that

as

million,

—

high supports are dictated by po-

conservative* portfolios on a year
to two year basis. It is now con¬

.

65

of

alone,
population does not
indeed, depend on the following factors: assure us a higher standard of
The measures taken by the Gov¬ living—if this were the
but that is only one part of the
case, India
ernment and how fast they put and China would
picture, one side of the coin.
enjoy the high¬
them into operation; how fast the est
standards
of
living in the
Strong Economic Forces
reserve
authorities change .their world
yet, we do know that
There is another side to the coin, credit policy
to make reserves when we have a population of
172 >
namely, the strong forces, and available to the commercial banks, million, as we have

water-proof fabric, surgical

litical

Encouraging Textile Outlook
Great

and many confront this industry, I don't 41
people believe that the world has h°w anybody can be pessimistic
instead

that the estimated surplus for the
In part it will depend on psy¬
fiscal year '57-'58 will be converted into a deficit. It is quite chological forces such as the move¬

that textile is¬

recently

a

million people working

Cotton, on the other hand will
not be neglected politically since

a
grad¬
change in

mild

in

60

will increase. We

been

look

with

only

dressings and in binder twine.

has

there

in

blend

see

can

mal*

dress-conscious

people, and here one
year of readjustment

paper,

average

sues

a

be 60 million

it h

w

investor, but I
am
happy to
report
that,

ual

as

Thursday, February 20,
1958

.

Wallace wrote that our

dis¬

in

been

items

ve

at work now and are

.

it when Mr. done to make the American
goal should style-conscious or

years ago was

many

.

the outlook would be bad

to state my

,

stocks* ha

Un¬

the economy down.
If this were the situation

In
the
synthetic - fiber rayon
posi¬
tion concerning the textile indus¬ staple has' shown a solid upward
In 1957 some 350,000,000
try: I feel that textiles are as trend.
basic to our economy as are the lbs. of rayon staple was produced
as against 210,000,000 lbs. in 1952.
steels -and-the—
'
oils. Until xe-.
Rayon staple appears to offer the
greatest variety of uses in such
cently textile

I would like

be¬

reaches

unemployed

employment, or the growth of un¬
employment has an adverse psy¬
chological effect even on those
people who remain employed.
All these forces combined right

base has been reached in these stocks and

a

of

ber

tween four and five million.

Registered Representative, Harris, Upham & Co.

side.

surprising'if during

the winter months the total num¬

By EMIL N. II ADD AD*

repute

Financial Chronicle

The Commercial and

(848)

vl

And finally, the liquid savings

in the hands of the people are very

Now, what conclusions can one
reach?

(1) A free economy is bound to
its ups and downs. To be
sure
we
have learned how to

have

major swings in the
cycle. Depressions such
had during the '30's are a

eliminate

business
we

as

their favorite commentator is pes¬

thing of the past, but we have
as yet not abolished the swing of
the cycle itself. Business activity
reflects the mood of the people,
the millions of decisions made in
millions of homes and by thou¬
sands of boards of directors; A

simistic

free economy

Public opinion is

public opinion.

made by very few people. A great

people listen

many

the

read

When
is

to

newspapers,

they

the
and

radio,
when

pessimistic, too.

are

their favorite commentator

well, they say to
themselves, "There is nothing to
worry about." A great deal, there¬
fore,
will
depend
on
whether
those who make public opinion
will look at the picture realis¬
tically and not be swayed by the
optimistic,

weakness of

one

or

the other

sec¬

is bound to have its

and downs.
*(2) Every downward readjust¬
ment is painful, but I do sincerely
believe that in the long run the
ups

present readjustment will be more
helpful than harmful. It has at
least for the time being retarded,
if

stopped, the forces of

not

flation.

in¬
.

large.

People will have a large tor of the economy. ■.
Productivity of labor will in¬
^
supply of money at their disposal
Some of the maladjust¬
Now a word or two about the crease.
and in all probability they will
textile industry.
What is wrong ments which have crept in during
sPen.d it. They will spend it pri- with the textile industry? Every¬ the period of the boom will be
marily on nondurable goods. The
eliminated, and when the read¬
body asks this question.
fact that in 1958 for the first time
Let's divide the textile industry justment is over the foundation
a great many Americans will have
will be laid for a much better
paid for their automobiles pur¬ into two parts, the mill end of the
future than would be the case it
chased during 1955 will give them textile industry and the apparel
the boom had continued, the in¬
added purchasing power to spend groups and its distribution.
flation had been accelerated, be¬

on nondurables, on soft goods and
on services.

Apparel and Mill Ends of

the Federal Government, and low¬

What

would have

is

magnitude.

wrong

end of the textile

ering of money rates, are very
simple. The mills
strong and powerful forces. How-

/^.^a^e.s time before an apPropnation is translated into an
^der creating a demand for labor
?* ** for m
fi \ i may take six
«? "*ne-^on

?re.. 11rlc^ea?fd

appropriations will be felt in the

decline later on
really been of majoi

the

then

cause

Textile Industry

Now, increased expenditure by

with,. the mill
industry? Very

as a

general rule

and for reasons, which you know
and I know, which I do not have

The year

be

a

will

year

,

ducers'

the

felt

in

and

be

,

1958 on the whole wiu
of readjustment whic
durable

capital pro¬
consumers

like to work six days goods. The non-durable goods in"
week, three shifts and, there¬ dustry on the whole will do \ve .
(2) The decline will be mme
fore, pile up inventories faster
to analyze,
a

than

warehouses

can

be built.

pronounced in the

first half t

in the second half. By the saranjL
It is one of the most
It takes time before low
disorgan¬ months the measures taken by
money rates begin to affect the ized industries in which a ruth¬
Government as well as the stioi»
economy, and have a favorable ef¬ less type of competition prevails

economy.

_

that

fect

in

has

suffered

I

forces

most

have

analyzed ioi>0

on industry
other industries is
and trade, and,
will begin to be felt. The decline
therefore, realizing that there is a considered as completely outdated.
will come to an end, and
time lag, I reached the conclusion
The industry has suffered from
a period of relative stability
that the decline in all
probability the inroads of plastics and glass ness activity will resume its
will continue until about the sum¬ as well as
paper.
The industry ward course.
„aimtmer

and then the stronger forces

will

come

business

to

and

from

competition

the fore

then

economy higher.

The

present

stabilizing from abroad. These are the prime ment in
pushing the weaknesses of the industry.
range

As

far

as

the

sale

of

downwardI adju

alters the
^
economic outlook 10
which Is as good
no

way

United States

apparel
concerned, it was affected by it ever was. The
0n
decentralization
movement omy is highly dynamic ba
in_
There are other forces at
(4) Exports in all probability will
work, from the cities to the
suburbs a rapidly rising population,
called stabilizing forces.
decrease partly because the boom the so
which of
necessity made a family crease in productivity and
in Europe too has come to an end, First, transfer oavments bv the
more durable
goods conscious. A crease in the standard of ^
»
Government will increase. Unempartly because the productive ca¬
greater portion of the
family in¬ and research which createsin
pacity of the Free World has in- ployment insurance, old age pen- come is
spent on durables than values and destroys old
wm
creased materially, and partly be- sion. relief, this will maintain the ever before. The result
is that the
And finally, 1958 though it
cause there is developing a short- purchasing power of a great many
percentage of disposable income be a rather rugged year, 1
1Jttle
age of dollars in some free coun- people.
that is used to
buy apparel has willing
to work ]ust
f ^eir
tries of the world.
Second, as I stated before, wages not increased as is
the case in harder, use a little more
a
During 1955, '56 and '57 exports will increase in 1958 even during most other industries.
In part it imagination and ingenu y» ^re,
played a very important role in the period of unemplovment. We is the result of
high cost of food little more promotion tnan
t
the boom.
ought to have 60 million peo- and services and in
part, partic¬ while it may not be thebj in
And finally, unemployment will pi#* gainfully employed at wages ularly the men's wear
industry, will be one of the good >e»
increase. As I stated before, it higher than ever before.
How due to the fact that little

a liquidation of inventories has an
adverse effect on business activity.

Stabilizing Forces

is

the

-

#

has been

history.

b

187 \ Number 5718

Volume

Check

.

.

The Commercial and Financial Chronicle

.

With Piofessional Salesmen

*

Rising unemployment

A

nationwide

underwriting

author calls attention to the rising professionalism of the sales^ {.

firms

indispensable requirement and as the oppoexemplified in : the play, "The Death of a

k

the

yesterday (Feb. 19)
on the market a new issue
8150,000,000
General* Motors

Acceptance Corp. 21-year 4% de¬

•

bentures.

k k

-mature

The debentures,

on

on.

used units

dollar

volume

of

European Tour
Mr., and Mrs. Edward H.

Welch

(Sincere and Company, Chicago)
J. Arnold

and Mi*, and Mrs. Henry

receivables

-

purchased in 1957;
^
v Notes and-bills
receivable, after
deducting unearned income' and :,
loss /reserves, held by the com¬
pany; at Dec. 31, 1957, amounted -v
to
$4,168,092,000,- compared with
$3,850,046,000 at Dec. 31, 1956. k

placed
of

as

prod-v
of any"

The financing of automo¬
vehicles comprised 98% of

tive

headed by Morgan Stanley
and. comprising 233 invest¬

•

well

as

new

make.

ment

man,

k?T;'-:- Salesman.!'"I,,
k

re¬

ucts

& Co.

group

can

£
i

site of the type

Welch and Arnold

by

21

re¬

sale and finances such dealers'

Offers Gen. Motors

Acceptance Debs.

k

as an

products

tail instalment sales of

be checked, Mr. Babson advises,
by increasing consumers' demands for goods and services. The

hailed

manufactured

General Motors to dealers for

new

.

By ROGER W. BABSON

"

Corp. finances the distribution of

Morgan Stanley Group

Mounting Unemployment

;

(849)

which

March

1, 1979, were
priced at 98V£%: add accrued:iri-.'
Total
GMAC : indebtedness
Evci-yone is; aware - of the fact
at.
wlio, were en-J
teresk; to
yield
approximately Dec,
that
employment • - has
recently gaged "in trade."
31, 1957, was $3,739,369,000.;
Salesmanship 4,10 %k'.
"y.. .'k ■
.k :'k •, -V r' This total; included:
been falling off. Despite attempts-has become a completely respect-;
due within
The net proceeds from the sale
at
rationalization
of
one year, $1,498,800,000; due
increasing able occupation because countless
sub-;
of the debentures will be;added
-'vf u n e m p 1 o y- intelligent -salesmen
are
sequent to one year, $1,865,569,taking- to the
general funds of the com¬
ment as "sea- their-vocation seriously and dedi000;
subordinated
indebtedness,
pany, and .will, be available for
sonal"
or - as eating themselves to it.
$375,000,000.- c ' •' - >kk:k
They are
maturing debt or for the purchase
i
AH of the outstanding capital
occurring umty • realizing that they are performing r»f
only
reooivahles
Such
Edward H. Welch
nrbceeds
~:"
ffoot
oflvxiinp to
in
certain a great service to tho nation as a
stock oi GMAC is owned by Gen¬
the nation as a!
to the
Industrie s," whole.
eral Motors Corp.
Total capital (Geo. Eustis & Co., Cincinnati)
duction of short-term borrowings.
we should face
stock and surplus at the year-end are leaving
New York City on
Xr
c
«?•
,
k
The new debentures are not re¬
the fact that it11 Is Not So Simple Now
■
amounted to $273,832,000.
Feb. 21 on the* Italian liner San

k'-V.*

-

■ >

.v'v.k*k .• down upon those

.

-

.

...

•

,

'

-

-

—

<t

'

jc

—

«

^a^b^appTied'initially

re!

-

_

*

-

is

general

more

xt

-

One of the saddest plays

already

produced in the theatre

was

deemable before March 1,
ever; On
and after that date the

"The

pany

than is healthy
for our econ-

turnia

Death of a Salesman"—sad, that; the
debentures at 102%
if re¬
is, as the story of an individual
deemed before March 1, 1964, and
It is im-.who went down to utter defeat,
thereafter at prices decreasing to
portant that Perhaps
quite
unintentionally,
the principal amount on and after
this
negative however, it symbolizes somethingMarch 1, 1971. However, there is
movement
be that need not be considered sad at
a special provision for redemption
Roger W. Babson
checked as aLU-the "death" of a certain conat lower redemption, prices in the
soon
as
pos- ception of salesmanship. It makes
event
of
stipulated declines in
sible.
Among many suggestions us realize the day of the "drummer"
aggregate
General
Motors
Ac¬
coming to me, I especially ree- who
depended
for
success
on
ceptance Corp. non-subordinated
ommend the
following by one of backslapping, telling funny stories,

TULSA, Okla.—Ralph H. Henry
engaging in a securities busi¬
ness from offices in the Enterprise
Building under the firm name of
V

the

Babson

Institute

professors,'.and being "well liked" j.s truly
past.
Not, of course, that per¬

' 7,

Foley.

Salesmanship

Is

the

United

Universal

Motors

Securities

eight-week

an

motor

France 'and England.

H. Hentz Adds Two

Harold

Opens

L.

L.

Hertz

Calif.

HILLS,

with H. Hentz

now

are

OCEANSIDE, N. Y.—Stanley D. & Co., 9680 Santa Monica Boule¬
Mr. Epstein was formerly
Karlin is engaging in a securities- vard.
business

from

offices,

with Daniel D. Weston & Co.

2625

at

Hertz was with Sutro & Co.

Cornwell Place.

Acceptance

is^. only one way this salesmanship as in everything
else.';,
mounting unemployment can be - That, however, must be a factor ••
checked.
That is
by increasing' added to actively intelligent deconsumers' demands for the
goods votion to one's business and all
and
services
that
industry can that, it requires to be up to date,
There

produce.

Factory Av'necls

We cannot be

cannot

keep

saved

"secu-

by

on
turning, and jobs for
workers cannot continue to
exist,
unless their product is

rity," which can be only relative
and temporary at best. We can be
saved only by faith. In the final

tinually sold.
Successful
salesmanship is vital to the prosperity

analysis,

being

of

con-

all, including those

tions

it is faith that makes

need

to

exert

themselves

■ ■ ■ ■

effective salesmanship to mesmerize people
temporarily into buying what they do not really need
°r

desire,

Al

•

.

.

.

.

Sales of

Increased

income

net

$17,182,701

of

Acquired Guarditc Com¬
pany ... a leading pro¬
ducer of equipment for en¬
vironmental testing and to¬
bacco processing.

$32 mil¬

than in 1956.

more

to

rl5

Solid Growth

the largest

...

Expanded facilities and

in

Company's history and
6% above the previous

markets of Adhesive, Resin

and Chemical Division

in

through purchase of Booty

R|ar|r |1|)6||$

DENVER, Colo. — Phillip J.
Clark has opened offices in the
Guaranty Bank and Trust Build¬

what

or

$234 million
lion

A

1 mBllr
T™11
(Iuim InVP^IltlPlll flfflCfi
wWIl III ¥ tJ^IIIICIII WIHWc

call for "highpressure" selling in the unfavornor

.

P||jl|j|) J'

a

able sense. It is neither
honest

record

Achieved

_

strenuously than they have
been accustomed to
doing. This is

however,

Another Year

fiscal year.

more

not,

•

•

great salesman—a humble faith in

selling. So the threat of growing our economy—and, most important
unemployment becomes primarily of all, faith in God. Salesmen may
a
problem for salesmen of goods well be proud of their occupation,
and of
advertising.
for the maintenance of our way
In the
buyers' market in which of life is dependent upon them,
we now find
ourselves, salesmen We need more praying salesmen,
will

»

a

in occupa- bis own ability, faith in the value
directly connected with of what he labors to sell, faith in

not

they cannot
truly afford to pay for; in other
words, what they ought not to
buy. The best salesmen are not

Split

.

:

'

;

■

Added

k Vkk:

one

-

.annual cement

»

additional

at

Raised Common Share div-

u.

r]0 O

American-Marietta's
progress

CO

and has resulted

Z

in substantial increases

several locations.

o

in dividend income for
Extended

after stock

ucts

by 25%
split. 1957 div¬

idends totalled $6,823,696

not

concrete

prod¬
operations into areas
previously served.

owners

wmM

of Common

Shares.

compared with $4,934,502
for

Q

•*i!

lias contributed to

capacity
operational efficiency

idend income

use

o

of earned income

amounts

capacity by f

Increased lime
and

■

.

facilities.

share for each two held.

necessarily

Reinvestment o£ sizeable

1,500,000 barrels to

building of new production

on
3 for 2 basis. Shareowncrs

received

:

shares

common

<
m*

Share, exclusive of Class B
Shares:

cc

Resinccrs.

Earned $2.21 per Common

"fast
talkers." They,
their intelligence in
analyzing
situations
of
possible
cus¬
tomers and
in

Shipped

previous year.

deciding

genuine

They
the

sales

have

where

possibilities

the

Attained
excess

imagination

real

benefits.

These

appreciate when they are
shown him—and will
want. Sales-

lession,

actuated

stanrim.no
standards.

by

a: pro-

professional

than

Are

ever

before,

thorough knowledge
U.uiougu luiowieage
«

4

has to sell.
-

days it

_

_

11

is

an

.

T

or
of

it

is

wnai
what

..

,

.

,

an

in

.

,

applying to

materials

raw

production.

printing ink field
Had

an

with 48 plants.

increase in Share-

from

27,923.

pany

improved

21,467 to

...

,

»-«

11

—

o

indispensable

upon
an

to

nowa-

to

have

render.

We

economy in which

salesmanship

(Special to The Financial Chronicle)

q

that

our

Morton

associated with

^eCOme

w"as

l955

1953

1957

nave

Shearson,

ANNUAL REPORT
SENT ON REQUEST

w^h King Merritt & Co., Inc., and
l. Jamieson & Co. Mr. Morton

WITHOUT CHARGE

wjth Dean Witter & Co.

Address Department 5

requires

With Paine, Webber

ancestors

(special to

would

not
have dreamed of as
requisite for
being a "mere sales-

Carl

and

1951

1949

Calil.—itooeri
ANGELES, Calif.—Robert

g0az

jjammill & Co., 520 South Gran(
^venue. Mr. Boaz was previously

amount of
preparation and con-

tinuing study

Co.

With Shearson, Hammill
LOS
lqS

*

In many lines

have evolved

2

he
n«

acquainproducts offered,
in order
to explain
accurately just
what kind of service
they can be

success

from

|

depletion allowance basis

owners

to act as a dealer in mvestment securities.
Mr. Clark was

to have

extensive technical
tance with the

depended

|

Required

necessary for the salesman
r\

•'

REINVESTED

Benefited

through acquisition of Sin¬

^

h

EARNINGS

from

-

formerly executive vice president

Salesmen

More

•

clair and Valentine Com¬

Phillip J. Clark

of Amos C. Sudler &

Good

record amount
pipe and prebridge sections
enlarged facilities.

used in cement

Entered

he will

manship is fast becoming

of $100 million.

Increased working capital
by $10,791,348 to an alltime high of $44,766,863.

and

ingenuity

turnish him

worth in

net

exist.

to demonstrate to
prospect how their product is
fitted to his requirements arid
can
the

a

a

of concrete
stresscd

the

chronicle)

he

BOSTON, Mass.

AMERICAN-MARIETTA COMPANY

^

E

man,"

Jackson

101

BAST ONTARIO

11, ILLINOIS

STRIBT, OHICAOO

paine is now with Paine, Webber,

We have
cornea long way since
the time
when "persons of
quality
found it
obviously natural to look




f*

&

g

Curtis, State
paine

*
local manaS

was

Revelation* In Progre**

Mutual

formerly

PAINTS

•

INKS

•

RESINS

CHEMICAIS

•

fnkSavard & Hart,

•

Through Modern Research

HOUSEHOLD PRODUCTS • BUILDING MATERIALS •
•

--

_

m,

,

i

K.
'i

I

A

t

—

Epstein and Lawrence

sonality is unimportant; it has always coimted and always will—in

Problem

k

(Special to The Financial Chronicle)

Co.

BEVERLY

S. D. Karlin

States indebtedness.

General

many,

is

omy.

Louis

for

trip through Portugal, Spain, Italy,
Switzerland, Austria, West Ger¬

Forms Universal Sees.

its option, redeem

at

may,

1963.

com¬

U •-

r

11

.

:

'

i'

:
t

\y

'

L

\

u

CEMENT
•

'

.

i" f

*

■

J
>

i

»

A

i:

Mr.

22

The Commercial and Financial

(850)

Thursday, February
20,19,^

.

a good many who have been decrying -" trance and exit. He has the stain,
policies as likely to do great harm io
ma to withstand^ the strain and
business and to the country now. 'seem. to .fhirik • that Vthey;
jhal^
•!
the overall long-term result.
could and would bring an end to a recession.
The

Strangely enough

Continued from first page

these

We See It

■'As

Chronicle 7

loose fiscal

equity owner carries the burden
of his ownership and not
every,
body has the capacity to stand

•-

gardless of any need, real or fancied, for stimulating recovery at this time.

Continued

from first

page

the load of

What Price Tax Reduction?
But these tax reduction

.

suggestions now being offered
as a means of
reviving business need to be studied with
care.
Few take the trouble to explain what taxes they
think ought to be reduced or by how much—and that
phase of the subject is of first rate importance. There is,
however, very little obscurity about at least one aspect of
these proposals. It is implicit w most proposals, and fully
expressed in others, that such tax reduction as is effected
now should be
temporary. Professor Burns is explicit on
the subject; others without doubt assume that when busi¬
ness
improves, taxes would be raised again. In other
words, the idea usually is that tax rates should be raised
or reduced as a means of
controlling business fluctuations.
Now let us see what is implied in this notion of tem¬
porary tax reduction. For one thing business men are sup¬
posed to be encouraged to go ahead with plans for expan¬
sion, including expenditures for plant and equipment, but
are promised, or
virtually promised, that as soon as they
do so their taxes will be raised again. Now Business men
—certainly the successful men of business—have a habit
of looking well into the future. They would not be suc¬
cessful if they had no such habit. For strictly short-term
operations. probably, a temporary tax reduction might
prove an effective incentive. But capital expenditures are
not usually short-term commitments.
The incentive value of a temporary reduction in the
income tax in the higher brackets—where they ought to
be permanently reduced in any event—would also appear
to be uncertain. Where these extremely high tax rates on
large incomes are most harmful is in the case of individ¬
uals who may have dreams such as Ford, Rockefeller, and
thousands of other geniuses have had in the past. But such
projects as they would undertake are not short-term.
They are life-long undertakings for the most part. Merely
to assure such a would-be entrepreneur that he would
have to pay less income tax for a year or two would do
little to create an atmosphere conducive to a
vigorous
course of action such
as
probably would occur were it
not for the burdens of high income taxes on such incomes
as would be earned if
undertakings of the sort prove suc¬
cessful.

of the
upon

Equity Investment

:

very large part
in other types

lower prices for

.

It

since

consumers

the

art

have

world.

in

the

indeed;■

And

nnccihlr*

enmo

double

of

times

1

this-x^LOO

< m

in

Since

reduced

buy

;

theirKopportunity?tcf

their favorite

_

forecasting the future .is

market and stock

with

charlatanry
pinioned

reference

which

wheif

equities

"sycnologicah

'

.,

V;.ca^g^ric^

nevertheless^^eouni-^^

examine as quickly as
^tgL;
score or so to; find oul
stand and what we arc
about.;,77
prices is replete : S5g
^
^7-;??;.:7.7 ...7?
if not asininity,* 5&er .part attributable -'to^iones:*;.?^ ?Vie,W of'Industries
to
frames 7 of; company,;Chrysler, and to a much;,;;f:!;.Vv;'^77:p.£7 TV
S"
understood >^sser .'V extent;?.'; Westinghouse.;.7:' (A.):at oit ctx>SE to,their:highs

difficult, if not impossible, 75 «??
but let us
and we
can
only feel our way..-nJL*n
p0SSible a
forward to a certain degree, the
where we
attempt to prognosticate the stock7 , .talking

are

:^ls apparent^earnings;;:.n^^-r;./ :
^b^thc; pnee swings of;their|7^ V; v 7 ' ? ^
public
are
S
were co^^erably;; greater,
, • Finance
demands
Wall Street that an ?ay 25% for the averages; reflect-r 7; ^
-^7:
unhedged simple forecast be
,change in .price multiple: - ; ; - Tobaccos^
made.
They tend to forget? the.'ft0"1 ^r-times'r'to ,;157;tim6s^V.;'.'"at-highs7 6 •dQwii>i5%:^V
frames of reference postulated or; 5ck ™J2 fjmes and; encomgass^ 7 . Eiectric 7 utilities: 7
Currently
inherent in such prognoses. ; In'v11^ within the averages multiples ;!n
d Their highs ^reflecting
other activities the mistakes are7?1 considerably less^^than 10 times^ J
er ^ ev•rates defensive poswept into the past or are buried for some of the stocks to well OveR siUon
and iong_term ^favorable
new tack is taken, but in the."?0 times. f°r othors; Thu$^^a;dhan|ri'?prospects
Selling' at'almost 19
stock market the bookkeeping is ;.m.^ultiple ca'n-.be more import^umes7. for " the ^ growth ; utilities
inexorable,
accurate,
and
lives aht 111 terms of the. price of the "{vher(r the averagl yield is 3%%
with
for years and decades. shj5e^than, a change
earnings^-^ 14 times for the rumof-theThe pocketbook is a very sore and reflecting an economy! that flW^v^^^^'where the yield

accepted,

and

remembered.

the . client. and ;thei
insistent with their

fortunately

a

011

would

or a

,

us

sensitive point and the individual

^as growing and then

a,®'7.. .' 'and
Cabots

'

^

.

Anatomy of Stock Prices

i

air

on

this

7 Good' investment

Grocery Chains:-

the Lodges" ? ;

These three factors are

The shares are

further'rc^bi"g ^.^.^Eorabft

W«Ook..ffntanu^mtefajra»

""-""Voted hv the,„nfortnnatk

Having attempted to clear 1"
,

vl

was7paus^5

taxes

really bring lower prices? Or if lower prices en¬
assurances can there be that they would be
than strictly temporary?
Rising costs, particularly

give 'them

7

1777
coriiponents,
;! Since 7 l955;?rna^e Up ?the7 securities market
earnings.iof;; the.; Dow-Jones*,There are 50 to f00 industries in-

our

notable

such

progress.

very

theirMong-

enthusiasm for the country
whole,: nevertheless believe

a

price,

naitfht. :fnr thf1

which

talk

shown

has

,<dirhinutioh' in

term
as

The sharp drops orr that a cbrrectidh^is not possible
Vaiiectmg the until we have gone through the
common, stocks on the New? traditional and orthodox; bath in
Stock Exchange and a few; the classical manner^ and this will

changes

hi" m™7railtu^e a SCapi'K<mt f0r
that

we

jittle

-

back even to classical times York
of antiquity when the Greeks sawj; thousand
'listed
arid "unlisted
fit to consult with the oracles to 7 stocks 7traded
elsewhere in the
rfnin

provemeht at the mid-year point
with everything all;right in the
]ast six months. The latter, with

afduohs? ;;
(2) 7Trice:

decisions

>

assurances

^tellectually, temperamentally, and

goes

sued, what
more

failing to

.- termed -A "The
Six
Club," on the one hand,
and "The 350 Club" oh the other,
The former see the turn to itn-

derisively

Months

some

coping with the problems

of

Lower Prices?

what

human

^

street there are two vocal groups

inside dope in appropriate to his investment ob-to instill one's courage and; jectives and procedures.?; 7 /
get

task of

buy while they had an opportunity which is to
pass before very long. So far as can be ascertained, how¬
ever, consumer disposition to buy has suffered a good deal
more than consumer
income, or in other words consumer
ability to buy. What lower prices would do to consumer
psychology, we do not profess to know.

But

follow

to

bolster

goods people want might well stimulate
case

enough

natural

a

to

order

to

would

is

try

demand. The temporary nature of reductions might work
tend

a

bis -soberly arrived at. They have all7
analytical
lead.
Talleyrand,
worked with {approximately«;ine
Napoleon's
day,
said,
IYer, same material. 7 Nevertheless, the;
speculate except on the best oi in- range; ot interpretation is wide.t
formation, and how much-money y The investor will have to study;
I have lost.
'•
these economic diagnoses and then-;
There is the myth that the stock ,-the prognoses and choose theremarket
is a key to the future, from that which suits him in-7
incautious

of the expenses of the masses. Reduction
of taxes which resulted in substantially

in the other direction in this

.

working tool, subject, to change
without; notice and /always prehis opinion, licked, and the out-; p h r a s e £ called ("price-earnings pared for changes, that we are in
look
for
his
company
appears multiple.'';"•:*7."a decline more severe than 1954
propitious he then comes to the
Let us for a moment discuss just 'but not a .depression and that
conclusion that his enterprise is these three factors.
:;/77 ;=;•■v:77;while,the inventory readjustment
pretty good and a probable buy. $£( 1%- E&dnpmic' Setting: Since thev.-may soon be, alleviated the other
Since by that time
others who ;: pause ahcl slip in business a great 7 cycle of construction of plant and
have been looking over his shoul- 'number of competent economists
equipment culminated last year
ders have anticipated the fruits A have
focused their scrutiny on> and is likely to take a protracted
of his work, he becomes an inhobusiness even more closely than
period before7 an uptrend starts
cent source of misleading infor-, ever before and we now have a;anew.;.-;
;.■• ',
mation to his friends and others
range 0f forecasts studiously and v
As 7.you £may yknow, • in Wall

spending
to us, depend
constitute

7"; 77as for^i the t economic £ bacl£
7> ground, I am willing to accept as

7 7

the

great rank and file would, it seems
circumstances. Income taxes do not

are the normal tehthe marketplace,! .-j 7:1*7

sions in

•/,.

unless
on

•'

f

•

What effect lower taxes would have

living with uncertaifi-

if-ties. which

vexatious ; matter,

labor costs, must not be overlooked. What is
more, let it
not
be forgotten that the lower taxes
suggested are

designed to

accompany

In other words what is

higher, not lower, Federal outlays.

being suggested is

a

large national

deficit—and that just at the time that the Reserve
system
is apparently less interested in

preventing

in

crease

further in¬

prices than in inducing business expansion. The

indexes have given no
convincing evidence of any marked

tendency to decline. Indeed, with

a changed Federal Re¬
policy and persistent labor demands for higher and

serve

higher
we

say

it takes a good deal of optimism—or should
naivete?—to believe in lower prices
generally as a

wages,

result of tax reduction.

us

so

ing deficits which in

or; no

recession, the country and

that taxes

the end

we

can

are

almost certain to be in¬

groups who talk about tax reductions
but

larger Federal outlays

as

need reduction in

be cut without creat¬

flationary and generally harmful. But




in

which the facts of

are

a

the fact is that the

are

urging not lower

stimulus

to

business!

less

trend

important

and

the

^
than

their

estimate

?vnthPsi7P^rp fow

|

lav

\£-

over?

i tiraes, and

ana consutuie xne specu

7»re bXm In
r

.

the mixed. pr°Pri^rL(

^vseUing^arounch^ W
attractive.; &P1-

^

^

of

and

nomDe+itive but,

Government l!«Wne--f °^1(t ??r(
economic position months or years ;
i^ooing^. ir 101
.
yields around 4%. - Grc
ahead. Secondly, there is the price their; own account than.,th(q,- ahe
.
^
^ growth, and excellent i
of the securities which constantly
'"•.art'culafuig it to the satisfac-.
worthwhile equiti"*•
I
changes and continually has to be ^n; of others
The others wish search _,wor^y
u t
re-related
to
assets,
ear.ninghave a clear-cufcproof wtaehln,^'the?
power, and outlook, both its own
«ie nature of - things' cannot be
^.Vh
, 0-11 times th*
doingMC for

.

sand

in it need lower taxes. But

public outlays first,

.

and

Of course, recession
all of

™eSi«r?na iiMfirmv LTn "nly talk to eSch
Sw^ thpr^is^ the economic SV®11?' if at all. Those who'attempt?
Fust, tneie is
setting.

in

comparison

and

one

with

other

.

a

securities.;

'

The

sophisticate,

v

besides

^••vt^^?i^rfS»4ar«ariil«gs.

not7.y^^?'^l_

y^ds

'D,VI'
goad-

Thirdly, there is the psychological -^articulating his views, is not nec^.^^^ri^rr^^^r ' tK_ir biglis
attitude of mind which gains it? .Issarily right. His; judgments are:.^.Banks::
optimism or pessimism from the ^frequently visceral thqiish backed though .the
fi'O111
world picture, the national
.siiw^iby,--c6i^nuoitts>{:m^
Reac¬
tion,
political
overtones,
social Study and: rationalization o^'tpe their highs bf a year,
eartl.
feelings;
and
how
all .this 7 is' evidence - Wherv he makes a ixiis- oilably priced in
;
..gTf; and
translated into whether attention : take he does not lose his nerve7vings: iast
should be focused on the realities He may run but he does not re-:. most
sellingsComputed
of the moment

things to

come.

or

the

romance

This ends

up

in

of
a

move*:himself

'nor

attempt

to

from

the

pinpoint

market, from';

his

• en-'

conservattvely^

book values.

Dividends

safe.

23

(851)

Number 5718

Volume 187

.

The Commercial and Financial

. .

Chronicle

ranging all
the
from
10 to 14 times.
In most sections
continued ..growth, 'but nov fire-

off about one-thira from
which were reached in
fv^?h dm ^itv hT^
1956> although U. S. Gypsum is
nationally- the growth* facte"vsti11 hoverin£ near its Peak- Com"
rL1Vadlly t.lne grow r.n lactoi, ,j.,m Hmpnts flPP not imreasonahlo on
Whatever
tw^or-''^^ments are not unreasonable on

can -

-Tobaccos:

cancer,

See

halo von

thn

30

Deuks'iof

group is

to-sfi

Under the pall of
own
neglected during the stock
rise of the 50's.
They are now
ftoes toe
pear their 1956-1957^ hig^s hut^ the world oil industry
•some;,.of the .leaders well below few hands.

■}i

result of

juncture

too

Building: The building materials

cbfelarabl^u^th^^ha^nf^tP

be expected. - Good
ballast for the portfolio.
-

works

supply and demand not

great, say 15%, but the price
cut in half, the multiples are 20
times on current earning power
01* 9-11 times if copper is postu¬
lated
at 30c and full
capacity.

balance of

The group

the multiples are

the

than vice versa.

year

merit' in the 60s. Some of the

#v

vears ■ ■

^k^^r^ouble^tS T?-rr ??ec\alty < comPanies are
railr$W Uion of newe«,,itv statlstlcally cheaP*
nlbney
attraf!ivo ^Th^^ '
The cement industl'y with a ca¬
SSrf^^
Paci^-of 375 million barrels wil1
earn-;}t|
for ;,roTfh rth'a seU about 300 million barrels this
fme.t'er ^h^h:
8l0wth 0,1 a year, a'couple of per cent above
m

seem

aro

go0n

Lead

Lead and zinc

Zinc:

and

down nearly two-thirds,
represent a fragmented industry
shares,

hidden by
stockpiling and various devices,
and now requiring boom times to
put it on its feet for worthwhile
great overcapacity

witn

of

in transition from short¬

to

which

its

contractors

the

into

fear

and the invasion
of
outer
space
by the Soviet,
striking terror into our belief in
our
superiority and invincibility.

hearts of many;

elements,

three

These

coming

together, created a par¬
oxysm of fright and swept shares
to indiscriminate lows. Since then
closely

mainly

readjustments,

threats

upward,

the

investor,

and

ensued

have

down

shares,

defense

brought

saturated

Nickel

and overca¬
default of the U. S.
in dispensing pay¬

Government

upthrust.
Nickel:

that tne econ¬

oversupply

to

ments

the

things:

several

awareness

pacity; the

is
high and
price of copper is low, rather

when

lost last year were the
minor panic, the con¬

a

omy was

ages

is a candidate for pur¬

as

dTSestlc rate ind i '>le expectancy of a 5% or better
increase in housing starts this
is still in
wlth a substantial improve'"""""'v'* SM" lu year with a substantial improve-

ago.; The five ccompanies battle
With their brands, and with the
health scare, and some are attenating to diversify. The four
majors sell at 8U-10 times
frigs, and yields are plentiful! at
5% to 7%. wherein lies>the prin-

sudden

the time to buy them

chase

precipitous drops and

The

the money

than 10 times.

yields varying from 3%*to 6%. cfalized scientific laboratories, and
Cwrento there ls^ah oversupplyfothers ranging from production ot
°* botl1 crude oil and refinedy prosaic items to new and exotic
products and the growth factor . fuels and weaponry.

Tot

around

and small, spe-

10 141/2 limes net earnings witn companies great

^%oofls- This potpourri of scores
of companies finally ending up in
the cuisine are in general semng
V -fVroir hicrhc ^ with • rrmltinlp*

(2)

good the multiples were less
Now with the im¬

were

craft manufacturers,-down 30%
from the 1956 higns, electronic

better important d o m e s t ic integrated
:
companies which range from 7 V2

shelter *! like them
than preferred stocks.*
For

recent years with

over

inflation,

of

with

argu¬

good ments of growth, and with a
•
prospects and strong prices in deepening sense of basic security
±
X*. ■ last year. Leading companies are
by¬ in this great economy of ours,
cipal attraction. *"
°ff,ce Hmipment:"L e a d e r s priced at 15 times earnings partly nickel, and will benefit fromCur¬ may not return to throwing over¬
'
down one-quarter and the leader based on the belief that the roadproduct copper recovery.
me
leaders (I.B.M.) down 8% building
program
will get up rent multiples while not cheap are board his savings in the form of
) rI)OWX 1 0%-20%
• ;
equities and may not be unduly
with a brilliant future at 23 times steam.
not unreasonable.
Electric;-----r-- 15% .to 20%;. •
Containers
to 20% ' vdepressed
or
obsessed by
the>
^C0PS1°Ji?-a^ti; Agricultural Equipment: Two
Aluminum:
Aluminum, down
.*•'*
Rubber and Tiresir-_-.;^ *20%:"'
parade of poor reports which, we
Natural Gas
%20%
^
^ ^^
or tnree stronS companies, down one-thircl to two-thirds from the can
expect during the first half
■tif
v*One down 40%
>
^
^,-'5^.
.V- i-1 ^J-'^y-^vabout a third from the highs of highs of the last two years, must of this year. So I do not expect
-v"<•
.-^.^v^Ierchandising: The great mail five years ago. Slowly eliminating contend with heavy overcapacity the 350 Club to score a touch¬
Electric: G. E. down-15% ./from a'order and department store com- weak
competitors in an over- but has a firm price structure and down.
•"
y
y,
good long-term prospects.
Cur¬
However, the period we are in
rent multiples around
20 times.
may, in effect, be a tax holiday
Candidates for eventual purchase.
for non-earning or lower earning
DeVerages:
Fiberglas: This glamor growth corporations which normally con¬
Soft ___________l__—— FailIk- comparatively interesting as their Now selling at 9-10 times roughly
tribute
so
handsomely to
the
Hard
Low
group of three companies is down
Airlines
_______—3,--- '40
||; major market wilT suffer'no';.c6rir."..'e6tima;ted 1958 earnings. Not unrevenues of this land
for which
over 50% from the 1955 highs and
Textiles
40%
^t traction in the coming year, .and -^reasonable. Yields generally at-,.
the leader, which does over twoprofitability they are assailed by
Fire and Casualty— 33%-50%
ft| the-'latter* one is tinderpriced. : tractive . and ithe speculative eye
the ungrateful recipients, that is,
Automobiles
40%
thirds of the business, after un¬
Nojnferrous Metals:
ftffCOntainers: f; Dowh&12%-20%
:
paralleled
sales
growth, ^ has the politicians and. the labor
ic Nickel ———-lu—w
Va
4 from the 1956-57 Sighs'Tor the^Jie^s ^°d subject To
Budgetary deficits will
shown a mere 7%
increase per leaders.
Copper :
Vh-lu
■m three- leading.:-'eompanies.%vaayihgcu.
§10lvt }?
C
increase the money supply.
Aluminum
Va-^'a
annum for the last five years and
He... -Zinc
a3
M'reached a; degree; of -saturation ah
' vin<Jer."
sells
at over 25 times reported
(3) The decline in stocks has
Fiberglas
—56%
5 three - are diversifying. ;• A defen- .J.-A S thil w1 + ?1(luldalPrs
had more or less fair logic. There
earnings.
feS sive group selling at 13-16 ti'mds-^
- take.- hold. Not interesting
is not much gold immediately to
(E.) WAY DOWN.
~
ft® earnings.; ^Growth slow, - yields b9t undergoing .changes and com— Beverages: Hard and soft, the
be found in the groups with the
Television
__:_2
V
^ satisfactory.
' '*
bmations are
former"; near their lows,
Rail3
50%
great
declines.
Those
which
Machine Tools
67%
dropped the most deserved the
. Rubber
Tires:, Three of 20.%
the
Rayon
70%
O.four big "companies
down
fall. It will take good search and
^down^bfi^^
i^v,; Airlines: The airlines, after ro*Some down—some oat.
K from Thighs of last; two
penetrating intelligence to pan the
^ars.
^
si b"- ^antic bursts in 1945 and 1955,
Television: Many in group way precious metal from the dirt. The
Selling at - .12 times this;;
have slioped from favor and in
,estimated< earnings.
Still good 80%_90% 0f capacity^'Thehiaior'2^ >"ears have had a de(dine of
pickings are slender and can be
long-term I growth with pusstuic eomiiaTiies are selling at nvnr 15 4U7p. . They swi below uuur vaiuca, down
possible companies are selling if over 1 ^ 40%- lliey sel1 ueiuw book values»
found a little in the great declines
wi^-iwnt
gruvym
vviui
dynamism abroadvand ih- otherwell ' below replacement .values, they,
but also in the shares that have
lines.- One of them (U S
(U. b. Kubshown their strength.
[ imes, une Ol inem <uyS/'Rub- .crease in pnvninoc iv»iic+ Ho rrAofn.
at only a few times cash
a
ber) depressed,, over 40% down lated on 1959 alld ]960. A coupie dhrowoit.
regulatoir mrfhojv
(4) Below the great corporate
very mixed group, some interest¬
institutions which have won their
•"'•j speculatively the longer term. in "the'
on
a
leal recovery over .interesting
Regis and Mead, are sellin^ at of
regulation and competition, ing, the survivors to benefit from race and are the warp and woof
obsolescence and
new
develop¬ of our society, there remains a
Natural Gas Pipelinesr
Down aroqnd 12 times earnings and may,: creating pressure on weaker seg.

one-third, continue to have

„

r

;

■

.

-

..

.

.___—

__

;Varietj^chai«s;

—

;

,

the others

brewing.

f|

r

iteT'^e ofTm1

' RUb1"

oaer,m1"y.,8a"i Sny'tn-

fW9eP

2Q%: from the .highs# of 1957.
Plagued by regulatory^ imbroglio,
legislative' snarlsj;. and >judicial
snags.v A mixed group mostly not
group-mostly
-

!"•>% :T-. ■"
(c.)' DOWN
.!■■

*.

yssffirif- ;

eu

'

Life

insurance-

-*•'

The

'

•

shares

nre

schizophrenic problem

rrients vof the industry to meige
without careening the stronger
to
'nt0 iiuene'31 ditiicultics and, at
the same time, allowing, all
Pie 6aiut: lAU,lc'

ments.

,■

*

T-

Rails:

v^;,re^dyitbeniselves
thT
hete^_J%»s pi s
.

.

t

hiukc.

-

*r;

•

j

«uiu. uuw

.

upeictiiu^i. iu ^inaii

un-nn'u

».v "v,

constitute only a small percentage
of the whole. High unsafe yields.
In a trough but more often than
not sell at deflated prices.
* Fir#» and Casualty Shares are
ancl casuuiiy. ^naies are
bov/n ,one-third to a half fiom
their highs of 1955, justifiably deyield -4% TowT io'2%
This "n- >Va0m.
S 18 ' n ty?'Ca\
'flated"' because of red figures.
dusti'y is coremlex and 'consists of in ufs(ly'f ar-e allf,rgl„c
Prospects are mediocre in view
fearful of price cutting, aonornng of jn*reased competition from diabhorring
cor4flc"
:
ieartui ot
^ ? in A f

'60%Tof capacity. : Proponents believe prices will hold and earnings ^/urni-ngs' h"1 °n Will be down 20%-30%, on which
-LS if
?
basis- probably basis the shares are selling atr 9
riHpmnJ^iyan^d _6f-.^cburse, the in- considering next vear's notential
11 times. Not unreasonable
.cidence of research and develop- to
ment exnenses ha<?di<stnrtirm«: !%#
■.
• next yeai s potential.
of- course, many investors, for
potentials
C^h dividends
C0U$?' • mfuV + myes1tors'.^

in|&?

+
'

r

*

a
a

•

^atpc

,

9ggre" the large labor * component, the ,

61

n

wo

•

i

,

&
IS arr^g Zt™il!tancy «

union, and an-

>f wruprs such as

s^ars Roe-

^k" AiTife t Tpeci^%>ut-

cnaL.CjPf''y and stillrbeing tagonism of the Government to- j»rr"",7:ph as Government Em?S„dJed.atag00dcllP,'andbeing wards decent prices. The leader
invaded, by many other, strong
unde^alued""
ployees, and rate problems.
,Companles diversifying their other
"
•
Automobiles: Three companies
.

businesses.
sonable.

Labor content is

Basically stiU strong

'StitutfonT™ alfair'''G°°d i0F T"
......

=

Oils:

Standard

9ined

index

down

about

of

Poor's

&

oil

19

25%

from

com-

stocks

is

thb highs

? .;}aat year.* This great industry
With its many facets is not judged

by

value
"

yardstick.

one

and

Perhaps

The

appraised

throwoff

cash

the

important than

more

conventional -price-earnings

are

the

mul-

tiple. With regard td the first the
shares
®nce

are

reasonable.-With refer-

to the second, current

ran^

fdnge

f,™

iiom

ov4
to

earnings; and
,s

o

8

3

;as

to

ordy significant

4times

for

prices
,
cash

•

the




more

v

prjces down 40% from the
of twQ years ag0. what-

growth

and -after being rchecked .briefly ever the mildlysay the market for
potential, and interesting
last year are now in a strong upthey are faced with per:Wa1'
curve w ich presuma y petuaj style problems, major labor
^ ^ n
troubles, ancl now consumer

tuL1^

lethargy. Not

interesting. Auto-

motive suppliers in similar box
will be large percentagewise^ This
d subject to great squeezes,
can be a fertile field for invest6
ment» speculation, and outright
Metals: The Copper Group
.^aihbling, if one wishes to hazard reached their highs early in 1956
tbe va§aries of defense procure- aTid have been in a bear market
ment, - obsolescence, long lead for two years. The leaders are
time, and the remote possibility of d ° w n c 1 0 s e.
^
f.tn6
\
w
„
some disarmament.
The range of lesser companies are down price
Riirbs or m0re.
Domestic twocomprising the ,0f .:copper has dropped
great and reasonably priced air- world prices 60%. When

third, it ^companies is wide,

the

.

Aircraft and Missiles: Defense ,
but expenditures, on which this group h-

rea-

45%,

things

gets better.

.

Down "

Tools:

Machine

Bleak outlook.

thirds.

70% from the
Earnings trend still

around

multiples

and

lugubrious

all

from *10 to 15
at less than half
and several selling

lot

the

Selling

times.

values,

gling entities

terprises that the keen mind and
courageous soul can pin his faith
for

a

or

not

cialties

Each professional has

Wall Street.
a

few in his own

account, what¬

his view of the economy,

ever

skepticism

these

the

are

worry

or

source

his

general

over

of our for¬

great
reflecting
optimism and pessimism

if any—while
companies
fluctuate
tunes,

the

decade or so have a big
momentum. To pick up

and every

forward

morsels requires

promising

Conclusions

subject by itself.

danger.

Policy and

breakthrough,
for high
rewards. These spe¬
are the secret weapon of

and

stakes

these

high in some cases
barely

squirming and hack¬

ing their way upwards. It is or,
these small and not so large en¬

Yields
but dividends
covered and in

cash flow.

around 3 times

many

the
market, or his pessimism about
two- things in general. These are the
quicksands of our liquidity and

Down

Rayon:

highs of 1955.

book

%

those

interesting enterprises which con¬
stitute the real striving and strug¬

.

fore its

1

The highs were

specialties,

of

host

reached
d(,wn
30%
taSi1 their overex
in 1956 and since then the rail
loin hiehs Business w
u, LJ! last
nloited 1955 wJ?.*
market has broken in two and,
: .• .%i'
%
^exceUen^^d tSf ^ ?'r
the fit
cVviTPQ nrp BVflllrlhT^ jet age.
—
for that matter, some of the rails
.feshould be quite good.
Tliehiij^le
a ,d
mnedies for can go broke if the low level of
»°f compound interests works thp^hen. return to toi tune ancl favor current loadings persists. Some
. ^
25%
*T
a virtu nllv free nf tav hitp
nvpi*
lav or selected rails in the northwest and
C5',J r "
' ov< r'th?; are largely in the lap ..1 ihe.Govthe southeast quadrants of
the
25%' years. - :GrnmGllt
steels:'The highs were-reached'
.
country, such as Western Pacific
> 'at the'end of 1936 and early 1957.
• Textiles; Real highs reached in and Southern Railway, may be
purchased for income, worry, and
eventual appreciation. Yields 6%9%. The news will get worse be¬
'

5

"

particularly inviting, f f

be interesting

'

from mid-1955 highs but
managed to eliminate a
dozen and half contenders. Still

-

seemid" ran*k7sueh- aT'st itv has

:

——_

conIS5lfWnan?
^ar's;4"vt1^^^

.

L

.

t0 mlt,<,,ing' G°°d f0r inCOme'

fe&inTSle andTheThareT^e

,

of
of
a
real died-in-the-wool investor,
that
is, speculator, which is a

with the machinery
Wall Street and the becoming
contact

(5) For the professional adviser
sampling of the
as
opposed to the gambler or
industries, disposed of in a casual
trader, his investment course does
and
cursory
manner • to discern
not veer abruptly. He is as equally
their present position.
From the
impressed with conditions as he is
foregoing and from other factors with
prices, carefully examining
This is merely a

I

should

of

like

a number
conclusions:

to offer

comments and

Aside from a holocaust like
this is not a stock market
a
market of stocks.
Some

(1)
1932,
but

groups
bear

in

and

or

industries have had a
others are

market for years,

swing of prosperity
popularity.
Stocks are not

the

full

coffee, copper, or

wheat. They do

in unison but by
industries which are affected by
their own imbalances and struc¬
tures.
To view it otherwise
is
not

fluctuate

oversimplification and error.

statistics, the many
and recommendations
which
cross
his desk, picking
areas
of disagreement as is his
wont, adjusting his views to con¬
the

of

flow

reports

they unfold, and from
arriving
gt
convictions
which he slowly translates to the-

ditions
it

as

all

shifted gently
take
of
new
winds ancl
He does not turn

portfolio, which is
to

bend to the

advantage
tendencies.

times and to

Continued on page

2}

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Number 5718

187

Volume

.

.

.

Institute of Investment

Banking to Hold 6th

America.

in

nual

session

of

an¬

Institute

the

of

Investment Banking is scheduled
for

March 30-April 4, it was

an¬

by William C. Jackson,

nounced

of

Friday, April 4, the
concluding day.
./
Several
added

one

the

by

Association

University

of

and,

years,

cooperation with the Wharton

School,

tion exercises

organizations.

Registrants attend the Institute
week in the spring for three

' >

Sponsored

Annual Session

Association

Bankers

member

Association

Bankers

vestment

First
Southwest
Company,
Dailas, President of the Invest¬
Jr.,

ment

WASHINGTON—The sixth

(853)

The Commercial and, Financial Chronicle

receive

program,
Merit

Pennsyl¬

in

their

of

vania, Philadelphia, the Institute

ment

Chairman

specialized training in the invest¬

offers

an

program

other

executive

development

seasoned

of

personnel

will

In¬

be

awarded

at

the

of

the

'

pus.

Applications
the

111

' /

;

'

••

innovation

sion, March 31.

•

may

will

opening
<

ses¬
r

.

:

again exceed

facilities this year,

available

noted, in view of the
preferred list-carried over frorti
last year and the advance interest

Mr. Shepard

•

t,

'

additional

be announced at the

forums—on munici¬

pal finances, securities merchan¬
dising and investment companies

gradua¬

regis¬

University of Pennsylvania cam¬

Education

IB A

to

Case-study problem, on estate
planning.
... V
Tours of Philadelphia and the

program

An

Three open

pected that about 70 Certificates

for officers, partners and

Institute

Committee:

It is ex¬

banking business.

features have been

the

available

all

to

provide additional op¬
portunity for informal discussion.

according to Robert O.
Shepard,
President,
Prescott,
Shepard & Co., Inc., Cleveland,

Certificate of

a

recognition

new

be

trants

this year,

completion of the

upon

to

—will

25

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111III

in

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the

session

1958

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*-

Financial Chronicle

Commercial and

The

26

(854)
,
•

*

>r

■

■

^

..

V

>

STS'syna to
e,S"

i.

and

stripes

wort competition!

*

•

though

fight

that

terribly

was

Sputr^T.

quite

WVM.

ovr

hefore the stars

.

;

we

^

McCarthyism.
McCarthyism.

T

.

In that contest,

why should we

by

—

notable stride

a

„

—

-4

For.if we do shiver and flee
is all that we have, all that
have done, all that we repre¬

then,
we

w-th

sent, mere pretension?
And

competition means mili¬
tary, economic,
spiritual, ideo¬
logical, sucuuni, cuutduouai,
scientific, educational,
luKicai,
cultural, political, the exercise of

thrown off its cadence by
in

tually

Faubism

Arkansas

^

1

11

vxroii

tnn

have

does

+hpt

^oiinndo

ie

c.hallei?g

e

tv

Wf all know, all too Wi5'nionq ?2SS!? 1S

a

7" I

?

1

m'akp

thp

i^Utary Casual about murder S
idefs!nthensummon!ng'ofdete?- SdwThave engaged in world- ££?^Itth^y^r steak.
mination,
discipline

exercise of selfit
is competition

the
—

in the whole wide and wonderful

wide

without equal, in
scope and imagination, in the his¬
tory of civilization, or what passes

of human activity.
That, it seems to me, is the nub
of the free world's struggle against
the world to tyranny.
range

Let
that

us

concede what

thA

QnviAt

TTnion

barbarians, perhaps
ly, cannibals.
For
their

for civilization.

know—

we

is

hv

run

more

correct-

they

devour

in purges and suffoca¬

own

tions.
Call the Soviets barbarians, can¬
nibals, treaty-breakers, what you
will. Whatever they are, they are
headed, for the time being, by a
Trhrnchphotr
ufVia
nlovc
Pnceian
Khrushchev
who
plays Russian
roulette
with
the
biggest fire¬
-—

—

•

—

</

>

cracker this side of the

——^

sun.

That is the essential point: The
Soviets own ICBM's and hydrogen
bombs.

It

that combination of

is

programs

multiply oiir muscles and com¬
pels us to invigorate our search
for
peaceful solutions with the

trou-

our

and

title

the

assumed

have
have

people of

that

that

that

^ e^ntual disintegration of

fbe Soviet tyrannj.

we con-

as part of our- own integrated survival, million of Amen-

But

cans face a harsh and monumental
story. ••ds;."far. decision^, and,•'-•many.;:are actually

East

over-but it;bas .gone this;Waking it right now. ; :*
The Russians have achieved ,l-It ls no less, than tins: Is it more
a
300-year-old ambition.- They-desirable to go on hugging to ourhave bought and paid for a baae selve^a^diti6nali,system of ra® the Middle
and • separateness,

such

a

plant themselves than it is to take a basic step to
which is to say, Russia Vain the trust and respect, and
COntrols the faucet that Car- perhaps even the "friendship, of a

6ver Turkey, to
-n gyria

Not so. It needs to be-

now

of the oil Western 'Eu-'."billion and a half people whose
needs to survive. 7: Y'7777 ski'nvis not what we call white?
For over a year," ottr Govern- p The bhoice,v 1 ''suggest,. is un-,

ries 40%

the;.rope

nation which thinks it

a

in

far.

and in a shorter time ever saidV7Y:v
alloted to a people for mental,
And it needs to be said by
physical and financial adjustment,
we
we

.

mat

^

from

you are

might say: That goes with-

out saying.

as

in the

n?JrX??^Knfslichev1'is
For

Middle

The

sers,

noble and
meJ}\ dai(j;d not let
'"w^
would
to mee.t t!le Russians with a bal-/a fieid where we - pride ourselves, appear to be inevitable—no* just
But we are not in competition anced budget. "
; %
,
' .
so lustily in competition—freedoms-for our moral posture befoTe the
with our. past. We are competing
ft needs to be said by a Presi- of the press.
*
y
world, but because "ws need the
against the present and the future dent and a Congress that imposed r; The refusal to permit'^American pon white people oh'our side, in
we are in*a contest with Soviet
a national debt ceiling, .^"V there- correspondents to gb to Red^ China order to^^survive^77;
and
T
17
"
1
7r
7
of i
^ cdrtaih men- >Qn no point I have mentioned,
Russia—we are in a race to deal by imposed on the United States put the onus
with events coming around the a form of unilateral disarmament, tality ; on us,» not on ? the Com- Vare wo; standing still.■•.. Of course,
notion ■*:.
:the'.
still, v Slid
are we
iniinlsts.
..,-14.':
fliiriflc
fp.«hflnnPTJlTlS
the burdens,
world leadership.

free

of

of

many

.

—we

are

xiuooia

iu

wc

a

cvutesi

ate

ui

ci

wim

ouvict

iav,c

^

.

.

utoi

*

.

.

7-•-

,

:

.

"••••

.1

>

t'

'

:

...

.

.

.1

i

tiru

bend,

And fate is a hard taskmaster.
It hands out duties and never says:
Do you want this job?
prepared to handle it?

Are you

,1

or

fall, in

direct

responsibility that is thrust upon
them, by an incredibly complex

a

...

•,

,1.,

::

.

.s

.

,.

....

,

,

,

UniMr

.1

Why do
we
have military munists.
strength,
if not to
deter • our
enemies and retain our friends? •
...»

„

things

.

are -

more

hanpening and more

|^oplfs' will happen. Having, been caught
'f £^ S With our face out of joint and our

Military Parity Is Not Enough

a^naif

—

,

fal

t£fc

GovernmLt polled

.

ml,ltarv DOsture is «>e main
1/UVViA
V.,*W;

rise,

Nations

barbarism with the big bang, that
accentuates our danger, forces us
to

hitched up

and'

buflv nation calls Tor immense
AmericanSltosSnl
American military strepgm.
You

We have

with

saddled

world

A

Soviet

v^wpr-

,

own-view

«

convincedto tms day that we con
mved Wlth BritalI?» 1 Y 2,
?7
Israel for the invasion of Egypt.-1;

-

nhvimK

a

ourselves.

.We dld

/

under Russia.

clean

to

'7-

the rug.

across

^eSilSto educatioa
the Soviet;
P'

political m

a

for

ne€d to remember that one even-

though the stride was

him

handed

Victory and made, for ourselves,

!mw'Tva^nchht. upon'us wl St aLend

1954 Supreme Court deci-

a

sion—even

sounamg

-

^syP

undignified, ineffective
uuu.8uu.eu,

«w«.w«ru,
awkward,

years ago, there was

cry

_

,,

under that rug is an

To crouch

We have made
We have made

shiver in terror or flee in despair?

campaign

a

the thick rug about^the" East—we * ■Evei7>isitor..to Russia is tre-.
toend^o^
M'drile
jc<very visuor 10 itussia is treevents in the fvua
mendously. impressed .by the exresponded

^ v

haven.

;

-

-

20, 1958

^

a

a

tragically interrupted

that just five

aerial inspect-

Rll„ia

proposed to Russia a

Sum-

Geneva

SffgS
wama^atol°™p^lemsWCe
been" swept to
dark and false

An American Road to Survival

flinch

the

from

riueiitlv

Thursday, February

.

,

•

•

"Continued jrom page 11

.

.

freedom we are supposed to sym- matuye
r

as

••

not to attempt

;
try to cling bolize
ia^ihg of Soviet
?««? * whichCywe dissuade the Russia?or is it an ^
to
\ " 9. 000'/?Aine.riean ':and::Tr
:r
u
T.aQt
1

4.

^ f<

^

rcmec1W,4 7;
v*a,W;

ciimmpi-

growTh

v -^ -

set of circumstances.
In

the

balanced precariously on the knife

way,
presidents the small war. >
.:
■.
Festival in Moscow— except for few ye
.... ,
record, not on the basis
But parity with Russia- is not the opposition of the- State DeDUl
of deep freezes or fur coats, ac¬
P/iny wunwnv in imnrpss partment.
nussia is noi
^
-• ;V that we are
mnct
.. .
■ .
the most AffAPtivA way to impress
effective
this "giant leap" toward military
These
cepted or rejected, but in demon¬
2,000 young Americhpg:
the
neutrals
and
uncommitted
-tnese ^,uuu juuug . iririvri Mn strength as well as peace
^
V1QX7a
strating how alert they are to the
peoples of our superiority.
*
need not have .uttered a wdrd
. .. ,
4
m
challenges rushing to meet them,
We can hardlv afford to foreet
to
and how effectively they deal with

edge of terror, followed by nuclear

them.

Russians.

>

Hester Pearson,

of Canada, the
Nobel Peace Prize Winner, has
expressed it succinctly.
""The alternative to peaceful co¬
existence," he said, "is a peace

war

It

all need to know—not

we

for the sake of scapegoat hunting
—but for the carving of a future,
is this:

How well
a

are

desperate

race,

mands of

our

we

times, here

on

earth,

0
the Heavens above?

Some observers say

HAAiinA

—

nrAAinitnns

absurd

anyone

stopover

denigrate

our

accomplishments in
the whole postwar period.
Titanio
that .-e

thAv
1
ly

still

We

y

one

•

nrA

^

^

^

,

i1ndeed- But

2
part of the answer.

have

to

ourselves:

ask

ftched m ourincapable and taking
muscles of minds

.

Ana

a*

thn
t e

answer

no,

d

a

not enough.

,

is,

al^f1^

hunt

quite obvi-

u

,

ously

_

in
order
communicate to the 'RusJhat we shall haveto do. Many
that manv' a nation
ahd mnnv I sian people' Their mere :preSene6, p?tlons.« W the drnect immemfnd have' reristed Co,™nunis? ^
appearance' th?)' ^
threat and blandishment for onlv
dresses and shoes, would have 'J"timidatl0n 01 destruction, neea
reason?
derailed many a Russian's train of power to.protect them, and to stay
the assurance that we have he
thought.
>
Confidence in U. S. superiority
We could have'reaned onlv rich "the hand of Russia. ,
■•'•.-.Y; V;
tech- rewards
S If we agree that we iieed bigger
one

reason.

-

noiweapons and tech' rewards for the Russian in 1 the
...
, iy smiling that we people, with mental add that stronger nerves,
__Ttf confidence now has^ to^ be street to see amiable area friend military balance,we need a sounder
should muscles, I think we
restored by leaders who, time and neither horns on.'our head,/mor mep
a"d

T,mp

nn

wne

v

nn

and

sat.lsfv all

Hasivas

And there

"uu luclb

,

tary

nynurpss

progress,
soothina svrun

anri
and

On"

their
their;.., Almost the first

poured

heads;i of

the

to

me

hv

everv

remark.

•made^"yai}1

Russian'! eneoufi-

'

g0 around' to
™

etched

>,n

and

tiincp.

will test

4n

_

wasl4^?Jjz^p^|S^i^v
bdnS ^"r/^^^ed^tmptafloni^

SMSf5

are

n,iA.+

.

'

tered im the Soviet Union

ix/a

the S ^aneed^Sn^a^°'®een lightened,
beerf
tioned, by. 2,000

^^Pit^i2^abroad^4iaa;J)een
disunity lethargy

dfascd - or: :ques-

,

.

..

in

'engage' in "foreign adto divert bt been whethome and
ha.<i;

^,

ged by Sputnik; Per- tioned, by 2,000
snatching has assumed popularity?
has been
across
TbA
KmnipM face of our nation.
um
The contra rv is frilA
contraiy ,s true
Empires iace 01 our nanonhaps not—in the < oiaest terms oi emissaries—at iho cost of noten
coldest terms of Ami«canA«—nt the
are in decay.
a dime to the State/Department."
And communism is
If we must fix a rigid time to military hardware.

|hat

_

time

d0n,t dr°P at0m'
a1.^ dent Eisenhower to Paul-Henri us.
:
■
Spaak, the Secretary General v.of r; That fear, so profoundly*-pro-,/Russia .to
NATO, have assured us that the: moted by the Kremlin, could have Te"tures>Ki
But let me describe a pattern balance of
riur lei me aescnoe a pattern 'knin
t military power has not been lightened,
m-4

current
or

^

.

again,
time and time again, nave mis- atom bombs in "oun:hip-'pocket.^:>r-t'd-nd a Te-evaiuation^ot^ui.^
have mis- atom bombs in our: hip pocket.- ^'materialistic
calculated the rate of Soviet mill-;;:,: That could have been useful.
<'cv«h.ped sense ot maieruu.s.
calculated the rate of Soviet mili-

srnnoZats U^oui- the American people-

diffieuHiesP

,

•

.

time

enough?

fienS^-has S £be- suf^iy all desires.
eS°^ to
satisfy

merely
merely gentle—has come, is it because communism has become so
attractive?
Is it because empire-

for

to

Moscow, and at all
points
in between, to

that in the

ship of the free world alliance.
thA

here

"wewe done

past four years, there has been a
precipitous decline in free world
power, and of American leader¬
Tf

be

would

from

competing, in

to meet the de-

fKo

in

and

A

and total annihilation."

What

same

make their

0

and indecision. iv/i V;; -vv
u ^ Remarks have been
,

...

..

,,

.

,

harsh

th^eold%a7"and .brittle., they me so, ..because

trahquilize our way into. thb
everything—until had five years in which a notable have or do not have weapt^sr The liquidation.
accomplishment has been made.
Russian assurance has increased.
We have to reckon with the fact;tpre: Y?e can compe<
and
President Eisenhower has united Ours has decreased.
7that the issue no longer;fe;tb
w„
to
therefore
the nation m accepting the fundaPart of military strength is the Russian out of the Middle East
_/iiticiiG
iiiast
Cvsnfniv1 fAi*
US* ^
one solitary reason:
mental sociological and economic attitude of one's allies,
The ad- but how to negotiate Russia into Mr^ UUl Ul4, v*Ay,;;yr r - •
Hbe somnolence
illlCU,
We have been remiss—I use the and international precepts brought vantage there also is with Russia, reasonable Middle East behavior: assumed, qui oi;
thnt
more
charitable word—we have into being by the Roosevelt New
The index of the military textFor if we had a policy to keep V7e have been
^
v
been remiss in the field in which Deal and the Truman Fair Deal.
book of today can be found in the Russia out of the Middle East, that thick rug. '
H
"
incentive to
we were supposed to be enthusiThat is to say, Mr. Eisenhower incredible utterances of our lead- policy has failed.
:v : ; We
hav^-quite a •••; y-an(j
astic and supreme—the field of performed the herculean task of ers—that we will "catch up" with -• The issue is not how to
unify awaken. Our >yor;ici
^ \vide
competition.
transporting
many
millions
of Soviet Russia.
V
1
Germany on our terms—that hope their .W0Y
Si°o^vnption from the
screaming or reluctant Americans
Who, five years ago, would have is dim if not extinguished—but open to utter aesxiuc
_
Are We Competing?
intp the 20th Century.
thought we would have been com- how to prevent Germany's unifl- stratosphere.
*'.t
:' '^iHally
Our mortal peril comes
not
That was, and is, a notable ac- polled to make such a confession cation on Russian terms. i';
ivubsian
reims.
The auswci "
.
• - J-/tIlie answer is only suoerr
in OUT
1i-1
li-.-i
primarily from the power of Rus- complishment.
of the liquidation of our advanThe issue in Asia "is riot how to rin Washington. Essentially, i
^
sia
and certainly not from the
At the same time, we were in a tage?
'• 7V,'.
enable Chiang Kai-Shek to return system of a society, ;it ;is
magnetism <of communism
but race to win more people to our
It's often said, we are battling to mainlnnH rhinn^'iM^hhn^ «,«• miwbhwo
could

stomach

,

the Hungarian massacre.

.

ke^pY?0^6^^: ^^t%Swtitude

Russia3'has^ataed—for
4>l.

-*

£

m

-

■

1

"i-

_

•

"»

J-l_

_

-r*

ix

tat

,

.

;

JIJI

-

—

-

-

■

-

"

-

—•

..
...

—-

•».

v

enjoying under that

...

-------

.

~

vw

x

_

v.

„

v,v,auuu

vii

JX

.

-

-

-

-

,

^

_

-

—

struggle to survive.
essential

The

If

we

do

not

question

years
now

is:

want war—and the

Soviets do not—and, neither of us,
wants the big war—how well are
we

competing?

In

so

many areas, we have made

stunning
field

progress — more in the
technology, than in the
of Ideas — but still, in no

arena

have we stood still.

field

of

upheld the principle of
freedom of thought—always difficult even in a democracy—even
We have




has been

the reluctance of

President Eisenhower to recognize

Sizing Propaganda Initiative

that field, we need to be
—and
therefore
an
inability to realistic enough to be unafraid to
communicate
to
the
American compete.
~
people—the urgency of the race
The American story around the
with Soviet Russia.

In

world has been muddied and muf-

Events rather

clearly show that fled by Congressional myopia and
what Mr. Eisenhower did com- administrative incompetence.
municate to the
nation
ably
Since January, 1953, we have
abetted by editors and public re- seized the propaganda initiative
lations experts—was
a
national from Soviet Russia, only once.
state of euphoria.
That came at the Geneva SumIt is hardly necessary for me to mit Conference in the summer of
say this. Events speak more elo- 1955, when President Eisenhower
—

For if
about

tie? proudlv^and responsibly, of.

had a policy to bring
collapse of Red China,

we

the

it hno rn11 nH
has failed.
it

,

.

•

t

Educational Program
We all

can

be gratified

Leader of the free

•*<*.>

f

r

Iai«

v

that,

-

un-

•

,

F^dmari"

JOin i-a®

bigger

crop

That's
seem

producing

of scientists and

gineers, five, ten
hence.

in
or

twenty
-

a

a

en-

years

"

rather drastic

change. I

to recall, and you may also,

j

r^ancix)

-(special to the financial
jxHaro^
LOS ANGELES, Call1: ndecrson,

der the spell of Sputnick, our nation may get off on an education-S, Anderson,

kick—especially

world.

Walter A. -an

Don N. Bowker, and.Ma^y
ing have joined the stall

„un-

•

agt-

^..5

Dillon, Union-Secur
Co., 3115 Wilshire Bouleva

man

were:

formerly with

& Co. ^

Dean

•

&
^
^

Number 5718

187

Volume

.

.

The Commercial and Financial Chronicle

.

Continued f rom page 5

(355)

plans of a free people will result
in growth and expansion?
If you

believe these things, you
confidence — confi¬
is the primary in¬
gredient for insurance that, despite
any readjustments, our economy
will go forward.

There's Moie to the

Economy
Than Monetary-Fiscal Activities

should have

dence

/

Sroups> w®, c^1Jot expect that
every period will be spangled with

) Only a < few months agoour omy and that of other free nations
primary concern was to halt the is being; constantly studied and

Bank and Insurance Stocks

,

whicli

complex economic system can be unemployment .and
the
human
*n tlie growing, ever-changing
altered within; ashort«period - of problems it creates. Each adverse ccpnomy, .constantly responsive to
time.V-.
;
factor in all sections of our econ- the decisions of individuals and

»

•

growth of inflationary tendencies, evaluated as best we can.
suPerlatives. What we should reToday, > considerable attention is
Tne first need, as I see it, is to
t
our economy is
stand these/indicators up against
*kat we will grow and
tion." --.'v
the forces-'Which have stimulated..^xPan^,> ^a^ w.e W1^ meet new
,> In; point of fact, even the brief-and are. continuing to stimulate Jieinarids of an increasing populaest review of our past develop- -—the impressive long-term growth .h®11. We believe that the one new

By ARTHUR B. WALLACE

This Week

—

Bank Stocks

A selection of 12 New York

City banks to compare with a like
the largest outside of New York, brings out not

number among
much difference in the two averages for

1957, so far as their priceconcerned, as well as the rate of earnings on
value, or invested capital. However, oil the average divi¬
dend pay-out as related to operating earnings there is shown a
more pronounced difference between the two
groups.

earnings ratios

are

book

directed toward economic stimula-

;

ment indicates that

.i

rate

the American

in

people's collective

But

judgment and

we

The day of laissez-faire is
There is an immense body

over.

and

law

within which

custom

of

;

12.8

;Vv: 9.7

7.4

12.0

20

9.1

10.7

39

Republic National, Dallas—
Security First, Los Angeles—American Trust, San Francisco
Crocker Anglo, San Francisco-

20.5

8.3

may

Bank of

;j

Seattle First

the

people

and

a

First

has

been

I believe that every
,

Cleveland

....

.

........

are

favorable—which indi-

American, business and labor must

^

operate. Governmental authorities in some lines and certain adjust-.®111, freedoms and
must remain flexible at all times, merits in output and prices have American pattern ot
and must be constantly alert to already taken place.
Possibly in

properly and. helpfully as we can. commodity

of the

Bureau

showed considerable stability.

job.

■

■

In

our

The

decentralized f ree enter-

prise system, the

level

of

personal

income

...

There has been
% the economy comes from the mil- prompt and responsive readjust{lions of: decisions being made all ment in certain stock and bond*
over the country by businessmen, yield
and interest-rate relationworkers; investors, housewives — ships, arid the stock? market has
of has held up well.

momentum

-

all

of; us,

in

walk of .jife; shown rsome elements of strength

every

"that

resnonsibilities. ^

seriuus

assume

:

ures.up

'to .the

demands

pach

nected

of

it

"•efforts

16

achieve'

; acquire'

teke-home

pre^r^he
are

Federal programs such as the post
office modernisation program lust

tn

announced-.-by the President, high- its

the

laborer

from

and '

the

cannot

values «inhprfant
"

cratlc
-

socie^f-

■rpu,*;.**
'

*

^

•

divorced

be

the

endangering

the

of

in

n

iW

year-ago.

Hemn

* ir^V ae^-?, ing!

~
n

all

•

4-

•,ir

ivinill! rf

/

'J.J

and contract placement will provision

..also have a stimulating effect on
the economy.
Another factor may be. noted
mriy riave a stiiririlatihg^
for f€C^ on-, business spending in the

petition,

W

^frenlightened negoringS interest to comnletelv domy

'

_t?,.com,I? e.

i":

•

iaith

and

credit

aie

Increased defense spend- the Connecticut River and include

altmistic. w> hV^st
^™a °^ar!3C-es
sectioiml dif-4

full

stater 4hd local projects haying to net interest cost of 3.2584% to
do with;community facilities are the State,
proceeds from the offering
ihcieasing,. with the visible supply
Net,.pio<
costs of
°FneW municipal bond issues est!-, will be applied to the
west of
ma^ed '^°.be-twice as large^ae a. the pait of the Tuinpike

The
of

wages

of

welfare

.people- without
;

Ihe;

he £fate of.Connecticut forwhich

other construction pledged. The underwriting group
and ihodernization programs and was awarded the issue on Feb. 18
"rban rectevoiopment. In addition, on a bid of par, resulting in a

nav

motive

inclu-

a?
in

profit
generated-

profit

arid Fuel Tax Bonds, Greenwieh-Kill-

influencev cair be expected from sive,. at prices to yield 2.25 /o to
the steDped-up pace , of certain 3.25%, according to maturity. The

fntellig^nt Smpetition

of

3.30%

,

the retirement of

for

$31,100,000
general
obligation
notes which were issued for Turnpike purposes.; The entire length
the. Turnpike extending. from
Greenwich, Conn, eastward to

/ ; ,•
> :
Killingly on the Rhode Island line
Between-1946 and 1957 Ameri- was opened to traffic on Jan. 2,

future.
-

/ d0

can.

tadustrv.• invested

over

$300

1958 -except

for

section

a

com-

1f,eo

,

trifoution to our industrial ma- during 1958.
sh6uld,; chine^mdi it is an important fac- : The bonds are redeemable beAs individuals^ -wO must %be tpF ^ «th-' ipcreased outPut Per ginning Jan. 1, 1966 at the election
awarethl- man hopr of recent years*
^ Pf the State or ;beginning July
l of skillSi and. business manHowever, it has been little real- 1, 1963 from available funds in
agement so as to foster continued ized that a large and increasing the
bond acceleration fund at
inve§tmentf;arid ' jobs and Renter- proportion of this investment was pfiges fShgirig fl^om j♦
What

then;

are

t.hp no^itivp riirpptinr^

which

our

•

,

77

10.5

9.2

48

11.1

10.6

57

9.9

^-v.9.7

49

9.9

43

,

v

indMdtmt/^^f^Ho^repiace capital values

prise " and
sufficient1
rsavings tOiSupport them. 'We-musf
;recognize - the necd for. iroproared^^
educatiopland- a widening, of- the,
Skills of oun population. We must
not deny; the needed
mobility of
-

^

^

^v-_ "4

Exchange
City
—

Bank

r

1

-

United

Trust

States

the

;

that>"depreciation
4t__

.

''OSTON, Mass.

allowances are' Cay has been

Robert C

-

appointed resident
..

0ffjce

0£

Congress

Munro,

differences

9.1%

between

the

for-

£^^45^1^

^appointed rCgi0nal m"D"
^

on

average,

York.

some

In the

of Dec.

case

aste* himself;-

~ ' D6~ I believe in this country?

^




on

Yorks, only four banks showed,

as

31

last, deposit ratios above the old orthodox 10:1; and
the highest was Manufacturers Trust with 13.6:1 (capital funds:
total deposits). On the other hand seven of the hinterland banks
ran

above

10:1,

with

the

highest

at

16.5:1

(Bank

of America,

N. T. S. A.). In this group the most conservative ratio was Mellon
National's 6.7:1; New York had Guaranty Trust at 5.9:1 and
United States Trust at 4.4:1.

The latter, it must be* noted, is not
and Bank of America, based on its deposit
distribution, might be called 50% a savings bank.
a

commercial bank;

But the point is that on average the New Yorks are consider¬
ably less in need of retaining earnings to fortify their deposit
liability, while the interior banks do have to think in terms of
backing up deposit volume with retained earnings. In cases where
the deposit ratio is relatively high not only is the pay-out ratio
likely to be somewhat on the low side, but such banks normally
give consideration to new capital financing via subscription, rights.
If it is decided to do this, often an increase in- the dividend make^

Corn

stock

new

example,

in

more

1957

attractive.

both First

raised

Exchange

around the time of their new

National City Bank and

their

financing.

regular

dividend dates

As recently as Jan. 31,

1957, City's pay-out ratio was 54%; Chemical Corn's only 47%.

Thus,

many

through

a

banks seeking new capital are able not only to put

successful flotation, but also to increase the cash divi¬

dend and still

present

a

conservative pay-out ratio;

Incidentally, using 1957 yeari-end dividend rates and market
prices, the New, York City banks had a sizable edge in, yield over
the banks away

from New York, respectively 5.08%

This is probably a

reflection of the fact that

investors

regard the interior

than those in New York

NATIONAL

banks

-

our

Bernard

Jaffe

;

passed

economic suddrinly February 14th. Mr. Jaffe
«

r.;.

*

Wn

with Cnrl M

Bo^Iv believe thaf competition, had been associated with
skill,' ambitions, the Loeb, Rhoades & Co.

initiative;

away

Carl M.
.

_

as

versus

many

4.17%.

bank stock

better growth prospects

.

OVERSEAS

AND

Earnings Comparison

GRINDLAYS BANK LIMITED

21 Leading

Alma/gamatlng National Bank of India Ltd.
mid Grindlays Bank Ltd*

Bank

Stocks Outside N. Y.

Head Office:

London Branches:,

E.C2
Bulletin

■.

13 ST. JAMES'S SQUARE,

:

on

Request

S.W.I

Laird, Bissell & Meads

adbn/kenya,

UGANDA, ZANZIBAR A SOMAL1LAKD PROTECTORAH

Dcinara Jarre

^

ecoimmy^and thesri. are prbpCrly
Do ]I*/Relieve' iri
Iflc^Yihgr^ttehtion. ' We ate'facing; system?;?:
; ;
the facts
squarely. We are d^ply
concerned.; about the increase 111

averages

group

;

56.6%

higher than the banks away from New

18%

of the New

Bankers to the Government in

American; should

•

56

The primary reason for the greater pay-out ratio average lies
in the fact that the deposit ratio of the New York banks is, again

54 PARUAMENT STREET, S.W. 1

.

two

:

price-earnings and on earnings on book value are not ; of much
consequence.
However, when we get to the pay-out ratio aver¬
age, the figure for the New York banks is, 23% greater than* that
of the banks away from New York. It does not follow from this
that the managements of the large New York banks are more
liberal with the stockholder, for they are not. Indeed, being banks
of deposit for smaller institutions around the country, their ten¬
dency would more likely be over-conservative when, they are
subject to the loss of deposits by interior banks' withdrawals.

26 BISHOPSGATE, LONDON.

'r,*;'At present; "a number'of downward indicators areievidehtr-ih the

63

8.6

11.1 times

-

60

8.7

10.4

—

„

.

ef&ttngriem Mall,
.

^une^30, 1968 to

on or^prior

currently -used up. Recently only ; 100 2% after June 30, 1993.
abouf.;p,ne-:tenth of business ex-,:;:
-.'.y
^
^lxed assets *?as
0L^ri. pav Boston Mer
represented net expansion. This f>ODe" Cay^OOS^pn lVlgr.
fact has not been generally under•
por Reynolds & Co.

.

ofhXd°curJent bS?tuX,r

60
-

12.5

Trust

AVERAGES
Thus

*W:'

■10.5

Morgan & Co

New York

'

j

53%

-

efforts1

take^:

■

Pay-out

8.9%

7.6

Chemical
.

Book Value-

12.8

For

Creativeness, Not Controls

45.9%

8.2

the sale of the

*

i

Dividend

on

3.6

J. P.

Revenue and Motor

A sustaining rurnpike) due 1968-1997

Earned

11.7

Corn

National

Irving Trust

"to

^nd ^ke-hoffe
rais is ({^vstem

wlmre

slightly,

46

10.0%

10.9 times

York-

New

Hanover

his

consider his
decisions'
richievinV fhntsp bnalc
nc

'

available.

b

64

9.6

10.9 times

——

;

Guaranty Trust

in

rimst

pa>-

readily

cx-

upward

12.5

10.2

11.3

v,

and

11.5

Manufacturers Trust

;

3 *4 %

44

56

First

'and

npreson

urofit?

well

;

has turned

IficiurcornpeUti^

.Connecticut

46

Chemical

An underwriting group managed
jointly by The First National City
Bank of New York, Bankers Trust
Company, \ Lehman Brothers and
The First. National Bank of Chicago is offering $77,000,000 State
Expressway

•

r

45

8.8

10.6

57

/

of

If is-ih;'t]bis;a^a;:m6sf importantly;" dimng^he'^
each" 'one
of -lisJ needs -to '
Resideirtial housing construction

;

9.9

9.5

9.3

■

;

•

47

11.3

"

:

•33

Chase Manhattan

UTl6l 60 10 IliwBSIOrS

■

-:;;r

10J2

RAnile

n##

45

10.1

UGnCTcll UDIIga DUIluS

index

of

/

9.5

Earnings

Bank

51%

8.0

11.4

America, San Fran-

Bankers Trust

TllflMllfP

of Labor Statistics have; recently

whole

But this use cannot do-the

Trust

11.0%

'

Price

MyllirevJIvMI I III lipilVC
Alalia1

-

Chicago

AVERAGES

preserve the
progress,

changing conditions. We have the reflection of this fact, both sensi~
and determination to tive industrial material prices and
employ the tools of government as the prices reflected in the all-

willingness

National,

8.7

National Bank of Detroit

think¬

.Abr a h a m Lincoln dm not
visualize a static America but a
a constantly changing, a
First of all, we can recognize, constant^" improving America. I
without being unduly optimistic h»vc iaith that our people, wantthat part of the readjustment has.? i^niam free, will make their
occurred; Reduction of inventory decisions, so that we perpetuate

—

*

>/ 9.3

dence.

place for governmen- cate that a general upturn
and
an
important not be too long postponed.

There is a

place.

that

Pay-out

9.8

by

done,
recognize also certain fac-, ing American has the same con?
in
the
short-term
outlook Clde"ee and faith in his country.

which

,

/

when

Dividend

Continental-Illinois —

tmng in hundreds of years—gov-

economy,

can

tors

Laissez-Faire Is Finished

ri tal: action-

American

,

collective actions.

,

the

Earned on-

Book Value

9.8 times

This is the best insurance I know
system of competitive enterprise—
of against ill-advised and in-;
will succeed.
I haVe that confi¬
appropriate action.

simply does not respond
predictable ratio to use of a
tools intended to modify the

a

in

Price

Earnings

First National Bank, Boston-Mellon National, Pittsburgh—

eminent

i economy

few

27

Branches In:

Members New York
*

tanganyika. zanzibar, uganda,
northern and southern rhodesia.

•-

Boll

Teletype NY

Exchange

YORK 6, N. T

Telephone: BArclay

india, pakistan, ceylon, burma, kenya,
aden, somaliland protector atb,

Stock Exebanfo

Members American Stock

120 BROADWAY, NEW

2-880®

1-1248-49

Trading Dept.)
Specialists in Bank Stock*

(L. A. Gibbs, Manager

28

(856)

Financial Chronicle

The Commercial and

i

.

.

.

Thursday, February 20, 1953

and
unlettered masses.
v.
the Besides realizing fully the dead¬
armaments race were not stopped. ly nature of nuclear weapons, the
Soviet scientists certainly know
Most surprising and most prom¬
that their nation's standard of liv¬
BOSTON, Mass. — The Boston
ising of aff was the report from
Club
will
Russia. First the Presidium of the ing could be markedly improved Investment
hold its
if it were not necessary to engage
February dinner meeting at 5:15
Academy of Sciences of the USSR
in the production, of these instru¬
met
and
officially ratified the
p.m., Wednesday, Feb. 26, at the
ments of destruction.
Boston 'Yacht
Pugwash
manifesto. Then
195
The same Mr. Dulles who labelsground ready to take ■. on, their.,
Club.) Discuss-1
leading Soviet scientists called in.
deadly cargo. Russia has similar, Russia and Red China as ruthless;
;7'- • V'y Extends Invitation " 7
ing thg out--,
writing lor a further meeting of
dictatorships has despotically de-1
planes.; She also has hundreds of
While
the ; scientists
of
the look for iri-i
scientists of as many nations as
submarines, armed not only for creed, that no American observer
possible at any time in any place world exert their best efforts to surance stocks ;:§J
sea
combat, but also capable of ; or journalist shall go into China' to work for world
secure honorable peace among na¬
will be Shelby;
peace. 77 f >
^
launching landward-bound mis-;; to get,"first-hand information for
tions of opposing philosophies,. I : Cullom - Davis,;, &
When the Russian declarations
siles • with nuclear: warheads; In 4 the American people on what is
should like to .urge my fellow P r e s i dent of
reached the United States, I made
0,
addition, Russia apparently has* transpiring, there. To deny us hcV
businessmen and, industrialists to. the .firm
of ;§
the statement, in a New York
jntercontinental-' missiles : which, cess to eye-witness reporting oil
Herald Tribune interview, that I speak up and to work for the Shelby Cullom ;
loaded With H-bombsJ could re-' the world's most populous nation
same life-and-death goal. Evei'y-. Davis & Comconstitutes" as arbitrary a ukase thought the Russians meant what
duce Montreal or New; York to
thing to which we have devoted, p a n y. 7 M.;r.w
they said, and I proposed that we
as ever emanated from the most
rubble and obliterate every form
our lives is at stake.
We cannot Davis was at J
meet the Soviets half way.
The.
Let us no'
of life that these cities contain. " absolute of dictators.
afford to stand idly by while our; one time an
statement was picked up by the
All of these hideous weapons are - longer - call
ourselves the free
world press, and it has produced- families, our homes, our factories, e c o 11 o m i c
desigiied lor almost push button^ world when the petty tyrant of'
our mines, our places of business,
adviserto
an amazing response.
Approving
use,
and authority is vested in our State Department can bring
stand in jeopardy.
Thomas
E.
Shelby Cullom Davis
letters
have
been
pouring
in

Continued

'

'7

'

from

3

page
V-

t.

Time for

They

■

-1

,1 •'

•

»■

'

i

■

saw

vival

':•*

*

of

slight prospects for sur¬ erisheel

the

human

race

Boston In

if

Hear

New Look at

a

Club to

Shelby C. Davis

International
.

.

;1

.

.

.

.

.

'

hundreds

of'

in

men

scattered

parts of the globe to touch them
off if World War III appears to
have begun.

■.>)

The

$74,000,000,000 federal bud¬
get
that
President
Eisenhower
recently sent to Congress calls for
expenditures
of -.$47,100,000,000,
or
64%, for "protection" against
Russia.

The

USSR, we can be
sure, is likewise devoting as large
a
part of her substance to "pro¬
tection" against us.
An American

expert on modern
has lately recommended

warfare
that

this to pass.

•;

I submit that the statesman who
hurls

opprobrious epithets at Rus¬
China

and

sia

America

friend

no

With

of
the

crushing burden of taxation that
has been saddled

on

the American

people to sustain the armaments'
race, I further submit that Secre¬
tary Dulles has brought us not
only to what he boastfully calls
the brink, of war, but also to the
brink
of
depression.
Finally, I
submit that there

pect for

be

can

no

pros¬

political understanding

a

the

between

US

until Secretary

clear combat.

the

and

Without such shelt¬

it has been estimated that
60,000,000 American lives would

whole

be

in

lost

nuclear

intercontinental

an

war.

policy

statesmen

Suicide

and
From

tents,

all

these

signs and por¬
only conclude that

one can

the

human

toward

is

race

both

hell-bent

bankruptcy

frank

face, for

I

all of

I

feel

vigorously
believe

we

is

incredible

ought

to

move

must

and

Certainly

with

issue

110

large
tion

to warrant

as

all

of

that

the

destruc¬

civilization

produced.

so

?

has

•

.

Our

r; statesmen
plainly
have
stalling. - They have played

been
down

the

hazards to mankind

insane armaments

the

have

to

seized upon

foment

Russia.
the

can

in

hatred

of

Twelve years ago, in
fact,
States declared colcl

principle of Ameri¬
foreign policy ever since. Bear
that,

Russia had been

Japan had been
made

to

up

our

that

time,
ally, just as

our enemy.

While

with Japan

peace

and

suggestion
native village of
Pugwash, Nova Scotia, last Sum¬
mer.
From Russia,
Red China,
Japan Great Britain, France, the
United States, Canada and other
convened in

countries

my

came

22

of the

world's

leading nuclear experts, from the
(helplines of physics, chemistry,

biology and medicine. Others who
to attend because ot

unable

were

commitments

conflicting
touch

close

with

the

kept

in

Pugwash

proceedings.
Despite barriers of race, creed
these eminent scientists
able to reach an agreement
Pugwash and to issue a mani-

were

festo declaring that a third world
war

employing nuclear

,

would

constitute

chain leaction touched off

her, we turned on Russia and
challenged her to an armaments
Because we alone knew the

race.

secrets

of

the

A-bomb

we

began

the contest with contempt for our

Decries

The
jn

change

the

Dulles

of

United

brought not

an

Administration
States

in

1952

alteration in

our

policy of baiting the Soviet bear,
but

intense

an

:

self-appointed

monger.

Six

} still making
»

i

years
a

the

Western

later

career

enmity and

up

Soviet-hateof

distrust

and

he

is

stirring
between

Eastern

worlds,

j He takes regular occasion to redeclare the cold war not only on
*

;

Russia, a proud and powerful
tion of

as

profoundly

on

na¬

Red

China,

a

new

nation

of

650,000,000 people undergoing a
far-reaching industrial revolution,
and destined to occupy a position

of

prominence among the world's

major powers.




as

chain

nuclear

teen years ago
ot

the

that

What

of

first

seven¬

to take for¬
The Science Council

action.

Japan devoted much of its an¬
nual meetmg to the Pugwash pro¬

world, where the
it

record

as

endorsing the Puefindings in their entirety.

Germany
was
next
to
art
Twenty of her leading scientists
reviewed and approved the

Pug?

tw'llleu,0- Their ccmcensus
that settlement of political

disputes by force

possible,

spirit has

war

mounting strength.
gratifying that the

and

sians

and

was

would

no

be

longer

suicidal.

can

role

by

reasonable concert.

some

He'

Rus-:

her

on

challenging task of developing the
continent.

pied

difficult

ot

Accomplishment

but rewarding indus¬

d?an tradition.
financial

The physical and

obstacles

struction, in the

the

to

great Canadian Pacific Rail¬

now

the sceptics to brand
original backers as objects of
derision. When my associates and
1
tackled
the Steep Rock Iron
Mines project 15 years ago, we
were the subject of scoffing that

its

suddenly vanished after
last

Pugwash

Committee

summer's international

Permanent Pugwash

a

was

set up.

The Com¬

mittee met in London toward the

end of December to lay plans for
second

a

somewhat

and

larger

shipping millions of
annually from our billion
half

a

ton

grade iron
It

is

have

we

news,

now

nership

with

steel

$200,000,000

consider nuclear problems

strictly from the scientific stand¬
point, those who are to gather
will

soon

ment
can

on

strive

reach

agree¬

practical suggestions that

k? offered to the statesmen

their nations

of

to

for breaking the

stalemate.
This second
meeting cannot be held at Pug¬

present

new

iron

reserves

of

high

ore.

110

Txru^eieilce summer'sr'e2r future. I?www?8
*n
Where last
participants
met to

rolled

started

and

and

close,

we

back the deep waters of the lake
tons

a

con¬

Eighties, of the

way caused

they agreed without reserva¬
tions to the Pugwash manifesto. I
need not remind you that Canada
played host to this momentous
meeting.

As

unoccu-

trial feats has long been a Cana-

Pugwash, and

that

Permanent

and

immediate

own

rich resources of her vast

Chinese could

the Red

and would come to

I

that

sure;

am

embarked, 0 part¬
five of Germany's

Producers, -on

a

to tap vast
deposits in the Un-

program

ore

gava Bay region in the far north¬

part

ern

this

of

marvelous

Pro¬

of

Quebec. This entry of
strong German steel interests into
vince

the

mining industry here should
much
to
the
burgeoning

mean

Canadian
we

economy.
In Ungava
shall also have the active par¬

buildings there ticipation of North America's oldequipped only for summer use est iron ore firm, The Clevelandlack central heating.
There Cliffs Iron Company.
Cliffs has
is
good reason to hope that the spent 20 years and scores of mil¬
new conference will be convened
lions in laboratory and pilot plant
m Canada, however.
research and in operation on the
our

are

and

Inasmuch
enhiPH
gained

II

as

the statesmen have

nUy J°S*
ground

rather than
World War

since

ended, I find

for optiscientists of the
reason

nusm

that

s

?-rllingi?appi^them-

the

same type of ore which occurs in
northern Quebec, and which has
to be upgraded before shipment

and

use

?? ^ ±be practlcal aspects of
evolutionary discoveries they

ihft 1
the

have made. They understand
fully

unspeakable

destructiveness

of the new
weapons,

imbued with
tho
the

an

and they

increasing

are

sense

addition,

shall

we

benefit

experience in

have

of

the

escape

There is special

reason for op¬
timism, I feel, in the tremendous
01 'he Soviet scientists to
lind the road to world peace
Of
all segments of Soviet society
I

believe

that

the

intelllc-

ore

,777 Past decade, Canada has

emerged among the nations of the
world

as

a

young and

fast-grow-

mines

railroad?
,,grinl path that railroads

p'oTn'

in¬

Steep Rock's

the art of iron

wlal1?sp0nsibility for finding mi8 ?Cf°n0miC gjant, with
to open, factories to
tor mankind to
way

In

coiiditfons.der COmparable

m
to

points but to death.
..

the blast furnace.

m

valuable

ceedings, and adopted a resolution
firmly
placing its component societies
and their 25,000 members squarelv

was

held in the western

was

assumed
found

JaPan under¬

were eager

of

wash

Dr. Schweitzer the

gave

both sides of the iron and bamboo

in the laboratories
0f

mal

famous

reaction

University of Chicago.

standably

on

225,000,000 people, but also

by the

ufHTlu mj?n*fest0of mankind
hopefully may
affect the luture

aggravation of it.
Secretary bf State Dulles became
the

trate

greatest encouragement was that
this meeting of scientists from

of

appalling

opponent and confidence in bur-

friendship

with

constructive

Analysts Societies,
served as its

Financial

of

$13.5 Million Issue of

year."

weapons

disaster

a

selves.

ancient

our

peace

she

believe

winner: "I attach great im¬ The cities of Canada will txj in the and "in 1955-1956
portance to the fact that the pro¬ front lines of an intercontinental President.
posal of the Soviet scientists goes nuclear war.
back to your meeting of inter¬
While playing this conciliatory
national scientists at Pugwash last part, I hope Canada will concen¬

wash because

and color,
at

Nobel

and

I

prize

Committee

proportions, with ag¬
gressor and defender going down
in ruin together.
On their return
to their native lands, they moved
swiftly and diligently to place the
Pugwash manifesto in the hands
ot
their
colleagues. The moral

restored

to reach

six

to

J^rs^ confnrence pursuant

Canada is concerned,

as

humanitarian

from

letters

meeting of nuclear scientists drew

to the Einstein-Russell

Russia, and that has been

on

cardinal

mind

we

occasion,

every

popular

of

They

United

war

the

race.

As far

.

Deputy Superintendent of Insur¬
ance in New York, prior to taking

play a highly- over the management of the old¬
using her est firm specializing in insurance
Mr. Davis has also been
considerable influence to persuade stocks.
both the U. S. and the U. S. S. R. active in The National Federation

included

Nobel

nuclear

new

Pugwash Conference
a

accommodation

these

of

clangers
weapons.

reacn

dividing the world looms

now

so

scientists of all nations to meet

o

immediately

can

Russians.

the

this

we

and

workable

a

discus¬

at least the scientists have

to
the impending catastrophe.

avert

I

free

and

and warn the world of the deadly

say

folly.

world

laggard. Shortly be¬
fore
his
death, Einstein joined
with my
good friend Bertrand
Russell,
distinguished5
British
mathematician, philosopher, and
Nobel prize winner, in an appeal

and

suicide.

the

have been unable to meet face to

not been

Bankruptcy

of

Turns to Role in Canada

prize winners, contained
this
typical comment from Dr.
Albert
Schweitzer, world-famed

which

curtains

the

If

sions,

Hell-bent Toward

Dulles reverses his
is removed from

or

and

Dewey,

people in all
part of the
globe. One day's voluminous mail,
from

day

every

walks of life in every

USSR

office.

ers,

,

is

the world.

01*

to $40,000,000,000 should
be spent on shelters for use by
the populace in the event of nu¬
up

*

construct,
rivers

DOwm
powers

to

many
erect

harbors

to

improve

navigable,

tele-

tnelt0 Stdn8 ard water
harness. It will be
to

a

res°tnof°th^anad1w a!°ng With the
mirnPlL of 'Vorld, if the diverted
miracles
ne modern
science can

'he scientists,

carrv
carry the greatest weight with
their government. With the Rus¬

sian
intellectuals lies the likeli¬
hood for enlightenment and ame¬
lioration of the harshness of the

?h0aV/en SyS-tem' Let us China, too
that Russia—and Red not forget
i„e,,rib(raCe<1more of the in -order
communism material
obtain
to

hmgs of life for their vast impov-

Uoi^fn
to

f°r dGath and of peace
destruc¬
sweet

tion

+h
the

and

prosperity.

An issue of $13,500,000 Montreal
Transportation Commission 4%%
sinking ;>fund, ,vdebenturesV 1958
issue;.due Feb.715, .1978,) Was of¬
fered" lof public sale on Feb. 19
i

underwriting group headed
by Shields & Company;
Halsey, Stuart & Co. Inc.: White.
Weld & Co. and Savard & Hart.
by

an

jointly

uses

and

96.829%

yield approximately 4.875% to
maturity.
The Commission will use the
proceeds from the sale of the de¬
bentures in connection with its
1958 modernization program. This
will involve the purchase of -545
autobuses at a cost of about $10,-

construction 01 a
and other garage ex¬
and improvements at a

350,000 and the
new

garage

tensions

approximately $2,050,000.
debentures are uncondi¬
tionally guaranteed as to princi¬
pal, interest and sinking fund re¬
tirements by the City of Montreal.
A sinking iund calling for annual,
payments of $472,500 starting Feb.
15,
1959 is calculated to retire
cost of

; The

of the debentures
maturity. The sinking
fund price is 100%.
Except for the sinking fund the

more

than 66%

prior

to

redeemable
Aug;. 15, 1968,
with optional redemption prices
ranging from 103% to 100lA%.
Greater
Montreal at June 1,
debentures

are

P^ace

Moody

John Moody, founder of
Moody's

Investors

February

following

Service

icth
a

at

passed
the

age

brief illness.

not

prior to Feb. 15 01*

1956 had

a

population of

1,620,000,

compared with 1,395,000 in 19.ilThe city from its early days has
been a focal point for the trans¬

shipment of both exports to othei
countries and ot imports for dis¬
tribution to various parts of Can¬
ada and the United States.
The
city's econoimc development is
expected toi4fio\v continued im¬
provement pbqn completion of the
St. Lawrence {Seaway, scheduled
for 1959.
7 >V ■
:
The

Montreal

Commission

Transportation

trolley-buses,

of
■■

89
,

''

and a

garages

story office building.
the

.

to this
Commission
will

Giving effect

financing
have

$71,490,000.

Thomson McKinnon
(Special to The Financial

away

urban

furnishes

transportation services in an area
of approximately 91 square miles
comprising the City of Montrea
and 17 neighboring municipalities.
Property and equipment at Nov
30, 1957 included 1,457 buses,
a

funded debt of

John

are
priced at
accrued interest to

debentures

The

.

d"V' ^°ads to build'
extend, airports to

make

Montreal Transport
Comm. Bonds Offered

ATLANTA,
Gernazian is

AcWs

Chronicle)

Ga, 4-Harry
with Thomson

now

L.

&

\

Number 5718 .:.

187

Volume

,

The Commercial and Financial Chronicle

(857)

"ontinued

from

page

15

in

1957

will

and

more

long term
there

Wages, Productivity and
billion in 1945, $5.4 billion in 1947

billion in 1956.13 From
to 1956, the cost of these sup¬

1945

duction workers in

150%.

about

rose

in

errors

average

has

a

company, no
if productiv¬

arose

been

a

of 3%. Thus,
further rise in
increase

the data for steel and railroads.
From 1939 to
1956, output per
manhour rose 64% for the basic
steel industry.
average

ing and Construction Trades De¬
partment proposed a moratorium
on

houriy earnings plus
may be shown by using

period,

on Dec.
2, 1957, Richard J. Gray,
President of the AFL-CIO Build¬

110

average

fringes

dustry.
When
there
was
little
change in the proportion of pro¬

This serious
rise from 4.3% of total com¬ ity was

plements

increased

unit labor costs in 1957.
The magnitude of the

Prices: Post World War II
and $12.4

have

probably less than the

During this same
hourly earnings

higher

living

stated:

costs

"Shall

strive

for

he

continue

we

and

when

obtain

to

in¬

wage

to compensate

creases

for—and, I
might add, contribute to—the in¬

creased cost of
living and infla¬
measured in terms of their rose 201%
and
average
hourly tion?" (underscoring a d d e q) .21
pensation in all private industries manhours alone. The trend over earnings plus fringes increased Needless to
say,
this statement
in 1945 to 4.9% in 1947 and 6.4% time, which is the important fig¬ 211%. As a
result, total unit labor was promptly greeted by a chorus
in 1956. For manufacturing indus¬ ure, was not distorted. However, costs from 1939 to
1956 rose by of
dissent
from
other
labor
tries, total supplements were 4.9 % in recent years (the proportion of 89%.
•..
}
--T; leaders.22
of total compensation in 1945 and production workers in our econ¬
In the year
1956, productivity
omy has declined.
For example, rose
7.3% in 1956. -,;V
1.7%, average hourly earn¬ The Annual Improvement Factor
from
was a

.

.

.

,

From

an area

1947 to 1956, the ratio of pro¬
to the total de¬

these

data,vit is evident
fringe is covering quite
and that the area has been

the

that

duction workers

creased from 83.7%

growing in importance. In fact, in relative increase
of
nonproduction
many settlements it has not been

to 78.0%. The
the number

in

workers

over

unusual for the cost of the

the past decade has resulted from

to exceed the cost of

the

fringes
higher wages.
Under these conditions, the meas¬
urement of labor gains cannot be

Productivity

Gains

The key to the

in

such

nonproduc¬

as engineering, sci¬
sales, and personnel. 40
These shifts affect the rate of

ence,

confined to changes in wages.
Increases in Labor Costs Versus

increase

tion activities

change in productivity. For ex¬
ample, in the steel industry from
1939 to 1955, the rise in produc¬
tivity on the basis of production

ings

6.8%
and
average' hourly
earnings plus fringes by 7.4% in
the basic steel
industry.
A similar picture in shown for

the railroads.

From 1939

to

1956,
productivity increased by 86%,
average
hourly earnings by
185.6% and average hourly earn¬
ings plus fringes by 190%.
result, wages and payroll
thousand

per

traffic

As a
taxes

units

from

$5.20 to $8.10 or a
55.8% in unit labor costs.

rose

rise

of

In
impact of labor
1956, railroads productivity
was
costs upon prices is found in la¬ worker manhours
approxi¬ rose by 4% or slightly more than
bor
cost - productivity
relation¬ mately 62% in contrast to a rise half as much as the 7.2% increase
ships. Labor cost increases press of only 55.0% to 57.5% on the in average hourly earnings and
of total manhours.
Simi¬ the
upon unit costs and prices when basis
7.7%
increase
in
average
they exceed the gains in produc¬ larly, BLS has reported that for hourly earnings plus fringes.
I have cited these two indus¬
tivity. It should eb emphasized in the steel industry "... the num¬
making these comparisons that all ber of employees per unit of out¬ tries to illustrate that total labor

labor

1

I
I

be

considered, put declined less than the number
alone.14 When the costs of production workers per unit of
and-other benefits in¬ output, from 1947 to 1955."16

not wages

of

must

costs

wages

creases
more
than
output
per
manhour, unit labor costs rise. No
amount of statistical manipulation
can change this fact.
As was noted
earlier, the data for fringe benefits
are
very
inadequate and hence,
most of the comparisons necessar¬
ily must be made using only aver¬
age hourly earnings.
Some
fringe benefits are re¬
flected in the reported
average
hourly earnings figures. Thus, for
example, payments for time not
worked such as holiday pay, vaca¬
tion pay, call-in pay, rest periods,

and coffee breaks

are

reflected in

the average hourly
In reporting such

earnings data.
data to BLS,
companies include the money paid
for these hours in their payrolls
and they include the hours in the
number reported.

; ; y :
•
:">■ V.
payments for shift
differentials and premium pay¬
ments for holiday work and Sat¬
urday and Sunday work also are
reflected in the average hourly
earnings. An interesting illustra¬

Similarly,

tion of how these
fect

the

figures

reported

may af¬
is found

totals

in the steel industry. Prior to 1952,
in
thei months
which
included

holidays,

the

mium .holiday
about 3 ^ents

of

effect

net

pay

add

to

was

hour to the

an

pre¬

was

months
wage

used

date

base

a

as

for

comparisons.

hand, payments for
pensions, welfare funds, supple¬
mentary unemployment benefits,
social security, and similar pay¬
reflected

not

are

average

hourly

They should be
to obtain

a

changes in
wages and productivity for manu¬
facturing industries during
the
war and postwar period.
Increases

in

.

the

in

earnings

data.

added to the total

proper

ex¬

the
all

manufacturing industries and for
the entire economy.
Average

hourly earnings in manufacturing
industries
1956.

to

by 214% from 1939

rose

Inclusive

various

of

fringe

benefits, the increase is
even larger.
During the same pe¬
riod,
output per
manhour
in¬
creased only 48.8%.
As a result,
unit

labor

doubled..

have

costs

One

thaw

more

estimate

total

of

compensation

of
all
employees
unit of output in all manu¬

per

facturing

industries

rise of 130%

recorded

To

suggest that such

in

unit

labor

major impact

pact,

have

a

prices is not to
ignore this im¬

on

To

is

however,

large rise

a

will

costs

anti-labor.

be

a

from 1939 to 1,956.17

anti-

be

to

arithmetic.

exclusive

Unit

benefits.

of fringe

For the

comparative.

first

4%

above

of

that labor costs

per

than

1957,

rose
1956

the

Inclusive of fringes,

Productivity data prepared by During

method of measurement overstates
the rise in

months

industries

facturing

1957,

13 This

total
for

Unemployment,
unemployment,
civil

servants,

come

includes

social

employer

insurance

railroad

retirement

retirement

etc.)

(compensation

(old

and

systems

other

labor

con¬
age,

and
for
in¬

contributions

to

and

rent

Business, July 1957,

14 Jules

16 U.

for

injuries,
em¬
private pension
welfare funds, pay of military re¬
servists, etc.) U. S. Department of Com¬
merce,
Office
of
Bus'ness
Economics,
National Income, 1954 Edition, Washing¬
ton, 1954, pp. 21-0-211; Survey of Cur¬
ployer

p.

22.

5%

this year.

output

Denartment

in

S.

Comparisons,"

pp.

59-67.

of

Statistics,

Department

of Labor,

Bureau
Unit

Labor Statistics, "Man-hnuvs Der

Basic S^oel
1939-1955." Bulletin No. 1200,

of

in

Outout

U.

S.

17 Joint

Economic

Prices, and
ernment
Pr'nting
no.

144

Ibid.,

p.

1957.
18

Industry,

the

Government
Washington, pp. 16-17.
1956,

wage

excessive

increases in labor costs

is described
tion

in

as

cost-push infla¬

a

contrast

to

the

demand-

pull inflation which results from
excessive

an

creation

of

money

supply.
The

impact

increases

pends

in

in

1 *8.

280.

bargaining.

This

September

Printing

Committee,

Office,

on

unit

prices
labor

of

such

costs

de¬

in their relative
importance.
Thus, where labor
costs account for a small percent¬
age of total revenues, the effect
on prices of any rise in such labor

Incomes, U. S. Gov¬
Office,
Washington

collective

was

an

relate

provement

factor

been

never

principle

adhered

to

has

part

costs

will

costs

are

be

small.

Where labor

large percentage, the
price effects tend to be significant.
This point is well illustrated by
a

the service component of the

price

sumer

index.

predominantly
this

is

an

con¬

Services

are

labor

costs
and
the economy

of

area

productivity
gains
have
been minimal. Thus, it is not sur¬
prising to find that the steady

rise in wages and other labor costs
has

been

rise

in

reflected

in

steady
prices of all types of

the

the

prices

a

services

of

rose

compared with the rise
in the retail prices of

4.9%

goods.
Drices

of

services

while

1957,

have

risen

prices

goods

rose

Evident, therefore, that

It seems

inflation

significantly

any

rise

leaders

in

in

the

recent

have

dis¬

relationship between
and

advances

in

One st^el union economist

prices.

stated:

steel

contributed

index

increases

wage

has

the

to

Labor

years.

avowed

has

price

consumer

have

steel

single

"Wage
not

20

increases

caused

price

19 For

this

years

in

even

increase

tional

11

New

in

a

of

However,

the

nature

economists,

see

Business

York.

ident."

Economic

Hearings

long

term

agreed

to

hour

an

gain

2%

was

increase

an

because

in

national

it had

a year,

of

3

cents

in the real wages
of its employees.
Since the first
2%

or

1957.

of

Wage

that wage increases will bear any •

relationship to productivity
changes. One result is
rise in unit labor costs.

further

a

The rise in unit labor costs cre¬
ates pressure on total unit costs
and in turn

upon prices.
increased generally,

are

If prices
the con¬

price index rises and

sumer

round

of

matically

auto¬

place." It

takes

obvious

a new

increases

seems

wage

that

escalation

wage

clauses

adopted

against

increases

as

living help to
price increases

protection

a

in

the

bring
which

this

the

they

are

The

im¬

neutralize.

has

pressure

demonstrated

of

cost

about

in

1957.

the

In

escalator,
about

were

7

cents an hour and as a result the
total rise in wage rates including
deferred increases, was about 14
cents

hour.

an

Escalator

help to widen

the

clauses

between

gap

contract, the wage

increases

productivity and hence add to the

has

2^%

6

or

increase pro¬
stepped up to

been
cents

hour, which¬

an

in

labor

pressure for

costs

and

in

higher prices.

is greater.

ever

The

Long Term Contracts
relationship between real
and productivity gains
One of the important develop¬
embrace the various fringe ments in labor relations in recent

benefits
is

well

as

as

This

wages.

Reno»*t

such fringes
as
pensions,
walfare funds, and supplementary

unemployment benefits. The auto¬
mobile

and

increased

other industries have

real

wages

than

more

the
long term rate of gain in
productivity.
In
addition, they

have improved
recent

duced

considerably

at

As

result

a

before

the

of

Joint

of

desirable

these

develop¬

the

stability for

pro¬

stability in the

labor

bargain.

It

to

provide such
elements in the

all

^

labor contract except wage rates.
When
predetermined
wage
in¬
creases

included

are

as

part

of

these contracts, then we find com¬
panies required to give wage in¬

far greater than the gains
productivity. We don't have an creases of a size that would not
annual improvement factor — we be granted in light of the actual
have an annual improvement plus economic conditions prevailing at
factor.
And the plus is a very the time of the increase.
iniDortant component of the wage
Thus, for ^xample, the rail-,,
inflation which has characterized roads, with sharply declining vol¬
in

our

in the postwar years.
attempts to evaluate the

economy

In

our

economic

effects

of

the

annual

improvement

factor, this depar¬
original underlying
concept must be emphasized.23

ture from the

found

ume

To

rise

Escalator

protect

cent

cluded

in

living costs,

contracts
clauses.

include

BLS

million

number

a

reports
union

a

of

escalator

that

about

workers

are

protected by these clauses 24
number of such
employees

now

The

doubled

between

December

this

against

wage

category

January

1956.

1955

Included

in

railroad workers,

are

5

steel

hour

an

cost

cents

industry, which has already

experienced

Clause

workers

that

they had to pay
increase (in¬
of living in¬
crease) in wages (as of Nov. 1,
1957)
despite
their
precarious
financial position.
Similarly, the
12

a

steel

20% decline in

a

continuation of operations

a

substantially
below
the
recent
peak levels, will find itself obli¬
gated to add 10 cents to 15 cents
hour

an

summer

to

its

labor

well-being at the time.
A
period of recession
time

wrong

to

labor

to

costs.

add

workers

shall

adjusted

to

have

their
in

price ind^x in

with

pi-escribed ratio.

a

wages

the

While in

theory, these adjustments
uo

con¬

accordance

can

be

down, in practice, escalator

or

clauses have been us^d primarily
during
periods 01 rising
prices.

When the outlook
21 New

Sun."

York

Dec. 2.

22 New
pp.

1,

23 I

and
of

to

these

others

manv

Annual

in

1937,

potential
mv

Imnrovment

The

Fac¬

Wage Increases, N°w Y"rk University
Business, June 1952, 72 no.

Schools of
24 U.

of

S.

I.eho,-

Sf»*!«*irs,

Cladses "
ary

Denartment

in

1957,

1957

Mon'hly
p.

52.

of

Lab«>r.

"IpfpfvpH

and

Wa«"e

Labor
I

no

wages

money

essary in order to improve the
economic well-being of labor. It
is an interesting fact that one of
the

largest
increases
in
real
hourly earnings in the postwar
period occurred in 1949 when
general wage

Many

on

page
.

contained

contracts

clauses

no

movement27 devel-

Continued
25

V

such

30
'
es¬

the

early postwar pe¬
Korean War. How¬
with the stability in living costs
1953, the clause was droDoed from

most

contracts.

riod

and

ever,

problems

attention

is

increased

after

3,

38.
called

there

and

Nor is a general
increase at such times nec¬

calator

Dec.

labor

_

and

1.

d.

"Times,"

of

should not rise.

changes, unions

<4World-Telegram

1957.

York

shortage

is the
substantially

When

wage

changes

next

costs

regardless of its economic

unemployment,

sumer

ac¬

tivity and for which the outlook
is for

workers, auto workers, meat
packers, and many others. These
clauses
typically
provide
that,
every three.months or six months,

Pres¬

Eco¬

element of

an

terms

been

tor

pb.

Long term labor contracts
vide

seems

ments, the increases in real wages
and
other
fringe benefits have

74

fhe

ered under long term contracts.26

intro¬

cost of 5 cents

a

hour.

per

steel, railroads, automobiles, elec¬
trical equipment, and aluminum.
About 5,000,000 workers are cov¬

unemploy¬

have

and

years,

supplementary

ment benefits

dustries, three year contracts have
introduced. Among the in¬
dustries with such contracts are:

been

their pension and

welfare fund benefits

Frnncmics

of

has been the negotiation of "
In many in- '

years

particularly true in connection long term contracts.

with

Economics,

Congress of the United
r~ngress, jst Session, Jan.

295.

There is nothing'
timing to suggest that
productivity will have risen at the
same time.
In fact, the larger the
price rise, the less likely it is

vided

creases

p.

the

other

any

about their

increases

the

productivity

rise,
later.

have

increases.

wage

industries,

States.

31, 1957,

on costs as

clause

nomic C"mrni**ee.

85th

impact

many

Na¬

Testimony of Otis Brubaker in "Jan¬
1957

same

Motors

since

Onf»rence B«ard.

Studies

Number Efi.

uary

by

Industrial

Inflation.

ago."20

discussion

a

Dr^blem

increases

of

the formation of the ^teelworkers
Union

wage

portance

that

wage

time

Such

been

announced

of

prices

short

a

substantially more than
productivity.
Initially,
General

and

services and 13.6% for goods.

wage

follow

wages

effects

When

closely since the labor costs have

31/2

.•

Between 1951 and October
the

the

see

increased

The

as

us

escalation.

to

Between March 1955 and October

1957,
7.9%

Let

.

supposed

very

.

20

Produc¬

into

attempt
formally the improve¬
ments in real wages to
gains in
productivity in the national econ¬
omy.
However, the annual im¬
to

in

it is probable
Between 1949 and October 1957,
manhour in¬ the increases have been 32.4% for

total

tivity.

Backman, "Wage-Productivity
Industrial and Labor Re¬


lations Review, October
1954,


of

S.

Labor

called

only 3.6%.

Labor, Bureau
"N«nnroduction
Workers in Factories, 1919-56." Monthly
Labor Rewiew, Aoril
1957, pp. 435-440.
i

been

Sometimes, the pres¬
price rises resulting from

for

sure

factor

must
excess

inflation.19

22.0%

volume in 1957 will be moderately

15 U.

has

Corpo¬

introduced the annual im¬

provement

also

gains in productivity with
accompanying rise in unit

the

a

earnings

The increase in wages in

more

manufacturing industries was first
stabilise! on a high plateau and
then declined. However, the total

of

costs

of the

level.

higher than in 1956.
These con¬
productivity in recent ditions are not. conducive to large
years.
Productivity reflects the
gains -in nroductivity. Wben the
result of all hours worked by all
data finallv become available, it
workers in a company or an inseems
probable that productivity
tributions

labor

has been greater.

of

hourly earnings in manu¬

average

than

10

more

lating production workers hours
paid for to the total output. This

4.5%.18

rose

These trends continued in 1957.
the

unit

on

In 1.948, General Motors

ration

services.

entire private

creased

the U. S. Bureau of Labor Statis¬
tics usually are obtained by re¬

2.9%.

rose

nonagricultural
economy,
productivity
recorded no change in 1956 and

In

pressure

where

Output per manhour rose 2.7%
in all manufacturing industries in
1956 as compared with the rise of
5.3% in average hourly earnings
labor costs

than shown

more

by data for average hourly earn¬
ings
alone
and
thus, that the

labor costs

have

wages

ceeded by a very wide margin
increases in productivity in

unit labor costs

On the other

ments

the

examine

us

aver¬

hourly earnings. This factor
important in connection with

age

With these limitations in mind,
let

costs have risen

less willing to agree to such
adjustments 20 Thus, they become
one way street.

are

wage increases for one year to

halt price inflation. He recognized
that higher wages may
add to

291

Bureau

Wg«o

Tn_

Escalator

Review,

Janu¬

found

in

in

during

the

The

contracts

main exception

was

which included annual

imnrovemont factor increases.
26

1957,

Monthly
p.

27 In
average

Labor

Review,

January

50.

1949,

the

monthly

cbnees

m

hourlv earnings in manufa,"tur,n?
were
between $1,392 (October

industries
and

November)

December).

and

$1,408

(July

and

30

Continued from page

agreements on wages and

rcacn

other labor benefits that

Prices: Post World War II

to

the

well

rest

the community

of

in real average hourly
earnings in all manufacturing in¬
change

the

since

end

World

of

War II.
Real Hourly

Year to

Earns. (In 1947-49

Year

Change

dollars)

Year
1946

$1.31

:

1949

—;

1950-

1961

+ 0.8
+ 5.3

1.43

1948--,

—0.8

1.38

—

+ 3.6

1952—.———

+ 2.8

1953-

1.55

+ 5.4

1954

1.58

+ 1.9

1965

1.64

+ 3.8

1956——

1.70

+ 3.7

1.72

+ 1.2

1957 (9 mos.)

important ones, a reduction

most

in labor costs often means unem¬

ployment is increased. The effects
or
combination of effects which

develop depend upon the general
trends in the economy.
During
periods of expansion, it is prob¬
able

unit labor

in

rise

the

that

rise in prices

a

possibly to some shading of
margin of profits.
Tins is
what happened during the 1955-57
the

1.47

—

costs can be reduced.
costs are by tar tne

and

1.43'

—

(3)

labor

Since

costs will lead to

1.30
1.31

1947

and/or

increases

rise

in

ings in 1949

real

hourly

5.3%.

was

earn¬

With the

exception of 1953,
it was the
largest rise in the entire postwar
in

Increases

period;

rates

wage

other labor costs during

and

pe¬

riods of recession act to limit the
downward

price
adjustments
which can play so significant a
role m correcting the economic
maladjustments of the preceding
boom. Such declines in prices also

urgent relief to the
fixed income groups who fail to
provide

some

in

share

the

boom

who

and

are

penalized by the rise in prices at
such times.
If they have no op¬

portunity to recover their position
somewhat during a period of re¬
cession, their plight, indeed, be¬

and

Many persons have been skepti¬
cal of the possibility of success of
such a policy of voluntarism. Ac¬

timing of long term con¬

tracts in different industries also

significant role in the
wage inflation picture. The rela¬
tionship between auto workers
plays

a

and steel workers contracts is par¬

ticularly important because of the
intense rivalry between
Walter
Reuther

David

and

MacDonald.

Thus, for example, the three year
contract entered into by the auto¬
mobile industry in 1955 was a
very important determinant of the
level of wage and fringe increases
agreed upon in the steel indus¬
try's three year contract negotia¬
ted in 1956.
In 1958, when the
auto
workers'
contract
expires/
one of the important factors will
be the steel contract negotiated in
The

1956.

automobile

perform

t;an

industry

constructive service

a

to the national economy

by resist¬

ing vigorously excessive increases
labor

in

costs

next

year.

To

be

effective, it will be necessary to
adopt industry-wide bargaining.
Otherwise, Mr. Reuther will again
be able to capitalize on the in¬
tensely competitive situation
among the Big Three by picking
them off

one

Because

at

a

time.

automobile

and

steel

is

industry. It is cer¬

that when

tain

the

negotiated in

steel

contract

in

whole

in

unit

in

or

labor

part

costs.

increase

an

While

such

situation might develop during

period of boom, it obviously
cannot develop generally during
a
period of recession since one
of the main characteristics of such
a

period is

the

automobile

contract

entered

into in 1958 if it is for more than

of the un¬
fortunate attributes of long term
contracts
with
predetermined
wage
increases and overlapping
contract periods, is that they tend
to
prevent
even
a
one
year
breathing spell in the march up¬
ward of wage and labor cost inat
rates
exceeding the
one

long

Thus,

year.

term

gains

one

in productivity.

Under these conditions, long term

contracts

add to

which are
inflation.

prices
wage

the

pressures

generated

with

unit

overhead

the consequent rise
costs.

tion of

ship between wage increases and
changes in prices, profits, and
employment gives a misleading
picture of the causal relationships.

During the period of boom, when
price, ^increases follow labor cost
increases, it is often said that the
labor

price
were

conditio *" ** * *e
alternative' effects are possible:

prices can be raised, or (2)
profit margins are narrowed,
(1)




increase

cost

increase.

the

caused

demand
the

if

But

not adequate to support

hieber level of prices, a company
would not be
in a position to
its

recoup

higher

through tbis

higher

labor

cost

In effect, the
costs
become the

means.

labor

the publicly accepted
rationale, for the price increase

excuse,

which

is

possible

strength

of

because

In

profits means that 52% - of
any wage increase granted by a
profit-making company is paid by
the
government. ; The
'subsidy'
might be reduced moderately by
requiring, employers to wait a
year
before counting wage in¬

whether

effective

control

could be imposed in

wages

time.. In

this

there is

halt

demand.

In

the

of

light of

restraint, apparently in¬ because
voluntary, on the magnitude of they set.
labor cost increases.

formal

tioned

for

whether prices would rise
in the absence of laree

much

Hence,

a

unit

tbis

in

of

wage

in

labor

sense,

costs.

we

may

wace-nrice spiral when

increases

in

excess

ductivity gains create
flation wHcb

of pro¬

wage

a

in¬

The

importance

siderations

price

of

becomes

during periods of declining busi¬
ness activity.
As *urh times, de¬
spite the rise in labor costs, it is
difficult for many companies to
raise their prices. In other words,
although wage increases are still

publicly accepted reason for
price increases, underlying con¬
ditions do not permit such in¬
price

relationships

What

not

auite

so

on

are

are

be

a

the surface

simple

of the facts surrounding

lar situation

to

appears

when
a

all

particu¬

examined.

(6)

wage-price

Walter

spiral.

earliest suggestions

stop

Among

be

29

was

labor

President

of

power

the

of
Prices,

Subcommittee

m

cf the Committee

States

Senate,

J.

K.

Hearings

should

4.85%

on

85**h

the

This

proposal

been

advocated

regards
bv

op.

Oct.

cit.,

nrices

Senator

of

ou*put

firms.

where
to

p.

34.

come

of

past,

$106

prices,
of

in

whole

<

to be

are

in

part

through

share

per

depending

Jan.

or

upon

the .date

redemption, plus accrued divi¬

dends in each

Prior to Feb. 1,

case.

of these shares may be
redeemed through certain refund¬
ing operations.
1963,

none

-

Operating revenues of the com¬
for the year 1957 aggregated
$254,969,000
and
net
income
amounted to $26,430,000. .
Niagara Mohawk renders elec¬
pany

tric

service

York

in

area

an

New

in

State

having a total popula¬
tion of about 3,200,000, including
the cities of Buffalo, Syracuse, Al¬
bany, Utica, Schenectady, Niagara
Falls and Troy. Electric operations
include service to residential farm,

commercial

industrial

and

cus¬

is also sold
and municipal

tomers. Electric energy
to

utilities

other

distribution systems.

such

Bamm

Corporation Opens
Corporation; has

Bamm

been
Madi-

on

other

the activities

bank¬

;
.

.

- The

groups.

exercise

much

in the past. It has
usually
that such power be cur¬
the abuses have be-

widespread.

hnancial

Sooner

American

D

1,

address

an

HILLS/: Calif.

BEVERLY

-

-

Arnold & ComCamden . Drive.
formely with H. Carroll &

nected with Lloyd
pany,

He

364

was

North

Co. and Daniel D-. Weston

& Co.

16,

1957.

b°6»re

the

Staff

Joins ;Bache

later

Underwriters Association
Illinois on Oct. 11, 1957.

?1Se£. .Jules„. Backman,

f"«
1953,

Financial-Chronicle)

(Special to The Financial

Chronicle)

HILLS,. Calif. Norman Mendleson has j ^ined tne
BEVERLY

staff

of

Bache

Roxbury Drive.

&

Co., 445

..

Norm

.

Life

Chicago,

Price

or

of the Bie Three

Carothers, The Commercial and
Chronicle, Oct. 10, 1957, p. 38.
Yntema, Wane Inflation: Pub-

Enemy No.

New

(Special to The

Darvin M. Curtis has become con-

-

too

Arnold

With Lloyd
'

when

35 Neil

lie

Avenue, New York City to
in a securities business.

sOn

restric¬

investment

Fixing,

Pitman

York, 1938

and

Government

Publishing

Price

C<-rp.,

Practices and

rt ?8' *°onald 20.
Press' New York,
Chapters 18 to

.

31, 1963 and thereafter at reduced

activities

Automobile Companies, Auir.
■

"Administrative Infla¬

tion," Current Business Studies No. 28,
Society
rf
Business
Adv'sory
Profes¬
sions.
Inc., New York University, Oct.
16, 1957* pp. 41-42.

the

34 Letter to
presidents

in

Means,

program..,

preferred shares

redeemable
at

>

>

notes and to finance in part

construction

The

ap¬

insisted

wu'd

Sl'chter,
The
Commercial
Chronicle, Oct. 10, 1957,

in

and

36 T. O.

Financial

C.

and

power

tailed

is

c-rporaH-n accounts for
of the total sales of the

powers

mulate

O'Mabv Nat

one

25%

firms

was

term

its

American public has been unwill¬
ing to permit any groups to accu¬

p.

Has

whenever 30% or more
produced bv five or six
Weinberg would I'm it it to situ¬

the

of investheaded by

group

a

Ripley & Co., Inc. The
priced- at par $100 a
share... //.'■ ;j/ '-./•/••/ '
Net proceeds from the sale of
the preferred shares will be used
to reimburse the company's treas¬
ury; to repay $6,000,000 of short
stock

a

placed

were

trusts

5.

honey (see Ibid., p. 1021 and
Weinberg of the UAW (Heannsrs bef->re
the JHnt Econ-m'c Committee,
January
19S7 Economic Report of *he
President,
Jan. 31, 1957, p.
adont this policy

18 by
banking

Harriman

railroads, public utility hold¬
ing companies, securities trading,

53.

Prices,"
as

Mohawk Power Corp.
stock was made

perferred

ment

ers,

1957.
31 "Administered

//

engage

and

M-nop~ly

Monitor,

*"■

-

formed with offices at 515

tions

Coneress, First Ses¬

Science

:

in

inflation !

evaluations

the Judiciary, United
p.

be given

interest

wage

Ripley Group
Niagara Mohawk

Feb.

on

giant

of

union

;

'

Public offering of 250,900 shares >

laws to

implications
upon

the

complete pub¬
lic airing and be
subject to care¬
ful study.
As a result of such

Ad¬

before

Antitrust and

sion, July 1957, Part I,
30 Christian

Galbraith,

full

restrictions

of

of Niagara

the restriction of
negotiations to a company

The

proposal
companies to

■

in

Power Preferred Slock

may

the

are:

antitrust

wage-

greater than gains in

diminution /of

a

Offers

unions,

union

Reuther's

Testimony

32 Sumner

a

this

plication

a

However,

Harriman

designed

limit

to

a variation

Thus '

.increases

problem.'//";

term

of

rises/

to

term problem of wage

costs

solutions

This

automobile

ministered

and

the

problem

no

required to
limit future wage inflation.
Un- '
fortunately* past experience sug¬
gests that with a reduction in the
pressures for. price rise, there will

the problem.

the

main

to devise the programs

which the unions are most power¬
ful. Among the proposals

renewal

a

Report of the President,
U. S. Government Printing Office, Wash¬
ington, January 1957, p. 3.

33 G.

to

the
year

industry,

In the past year many proposals

advanced

a

in¬

28 Economic

20%

been

possibility of

in 1958.

the

ations

Proposals to Halt Wage-Price
Spiral

have

for

to

a

The

productivity, remains/During this
breathing spell, we would be wise

which

long

face

1958.

boom/ has
immediate

price

inflation// namely
labor

rather'than to an
Industry, and
proposal in¬
the restriction of
volves voluntary restraints over
bargaining to a
plant basis or geographically.
any wage or price increases.

also
-

an

hold

to

line

second year."33

creases

50.

creases.

Wage

the

out

a

in

the

need

'

emphasize
We

earlier in order to control

labor monopolies.
It is .not an
accident that the major pressures
on labor costs have been initiated
in the areas of the
economy in

proposal was Gray's sug¬
gestion noted earlier, for a volun¬
tary
moratorium
on
wage
in¬

a

complex.

agreement
wage

given

management

-

"work

con¬

clear

very

labor

to

and

a

to

*hese

of

a

provide

to

of'

the

the longer

peace¬

patterns

•/-.;/■ rO-..

believe

price spiral at this time.

Considerable attention must be

this

becomes the reason

for the rise in prices.

Call

conference

with

as

solution

the

inflationary :

me

introduce any
of the various proposals
outlined

However, this does not

to

appear

(4) Impose comprehensive gov¬
ernment wage and price controls.
This proposal turns the responsi¬
bility over to government.
(5)

of

an

spiral

for

pressure

Resistance by industry can be
helpful in sortie key bargain areas

a

not

modified

during the Korean War meant a
slowing up in the rate of increase,
not an unchanging level of wage
creases as part of the costs which
rates. Thus, as a practical matter
are deductible in computing Fed¬
these proposals really mean the
eral income tax liability,"30
V imposition of some type of con¬
(2) Advance notice and public trol over prices. Time does not
discussion "where major move¬ permit a full exposition of the
ments in wages and prices are in distortions which would be intro¬
prospect."34 This proposal relies duced by government fixing.3? It
not provide
a
upon indirect political pressure to does
satisfactory
solution and hence I am complete¬
hold down prices and wages.
(3) Limit annual increase in ly and unequivocably opposed to
such actions in peacetime.
wages and fringe benefits to about

quires

do

wage-price

be recalled that wage stabilization

2Vz% a year, except in unusual
circumstances. 32 This proposal re¬

I

termination

over

connection, it

Monetary

-;,-'/a

conclusion, let

that

.

rate

forces.

price spiral.:

gaining. This proposal is designed
to equalize the bargaining power
of the parties and to increase the
cost of obtaining excessive wage

cordingly, a number of specific increases,
proposals for action' have been // (q)-Prohibit'strikes tb help
made including the following: /// inflation35'/
"
"
*

the political concern over price
rises, however, it may be ques¬

is

productivity, unit labor costs

relation¬

and effect

cause

by

rise. Under th^e

in

respects, this formula¬

some

simple relationship

When labor costs increase more

it would mean

basic

which rio counter

.

In

on

Wage Changes and the Trend of
Economic Activity

than

decline in total vol¬

a

ume

1959, the overall

agreement will be influenced by

might

In others,
industry,
industry-wide bar¬

;

are

with American

this

automobile

the

ia

policy and fiscal policy are the
appropriate instruments with ;

strikes.

taking
as

these

costs.

instances,

/some

such

are

increases

outlined above to
stop - a
wage-price spiral do not deal with

tered

a

increases

key wage bargain industries,
these
overlapping contracts en¬
able the unions to play leap frog

In

mean

excessive

posals

resist ex¬

labor

in

increases

by

supply and governmental
budgetary deficits.,-The nine pro¬

(9).-;Break- up labor monopoly.
(1) Have provision in adminis¬
Make unions subject to the anti¬
price
industries
for
"a
period of stable or
trust laws.36 These two proposals
standstill on price increases for a
declining business activity, it will
are designed to weaken the rela¬
be more difficult, and in many period after the conclusion of any
tive/; bargaining power of : the
new
wage contract.
This would
instances impossible, to pass on
unions. •'
,/// ;/•/
insure that wages
are bar¬
a
rise in unit labor costs in the
-'The'-first six proposals involve
form of higher prices. Rather, the gained for out of proceeds and not various
forms
of voluntary
or
tendency
would be
to
reduce automatically passed; on to/ the governmental actions tolimit rises
public."29 This proposal involves
profit margins and/or to cut costs
in //wages * and/or
prices.' The
a
form of involuntary price re¬
with the resulting increase in un¬
seventh is intended as an interim
straint. Sumner Slichter suggested
employment.
measure to strengthen the power
another version of the use of {$.■
These effects are unavoidable as
of management in key bargaining
a
matter
of
simple arithmetic. penalty as a deterrent to exces¬ areas. The eighth and ninth pro¬
sive wage increases:;-';J//-//
///J;/ posals are designed to limit the
Clearly, unless a company can
"Withdrawal of the Large Sub¬
recover its increased costs by in¬
power of unions to impose settle¬
creasing its
revenues,
it must sidy That the Government ; Now ments involving excessive labor
reduce its profit margins or cut Gives to Wage Increases.
cost increases. - v 7.
'v
' T/ ■
its costs or some combination of
"It is ridiculous for a govern¬
Voluntary or imposed restric¬
both.
It is true, of course, that ment that is sincerely interested tions on
increases in prices and
under
some
circumstances
in¬ in preventing
inflation to give wages do not
hold
out:' much
creases in volume may be of such
employers powerful
encourage¬ promise as an effective means of
magnitude that overhead costs per ment to grant wage increases. But stopping a wage-price
spiral. It
unit decline by enough to offset the income tax of 52% on
corpo¬ m a y
b e
seriously;- questioned
During

-

a

The

caused
money

to lower prices in return
vague promise to keep wage

cessive

will insist ;that
the
of the labor monopolies be

Fundamentally,/inflations

•

in¬
de¬

signed

consistent with

productivity pros¬
pects and with the maintenance of
a
stable dollar./And-;businesses
must recognize the broad public
interest in the prices set on their
products and services."28 /: : V

»

public

•curbed.

boom.

a

serious.

comes

This

persons immedi¬ for a
Negotiated wage demands moderate.
benefits: shold be
(7) Industry should

.

The

as;

to those

as

ately involved.
oped and
when the consumer
price index declined moderately.
The following table shows
the

creases."34

fair

are

price
proposal is

necessitate

would

Thursday, February 20, 1958

.

power

•bpccuicaily, business and labor by the UAW to "avoid making
recommendations that
leadership have the responsibility [wage]
to

....

the

Eisenhower's appeal for voluntary, cut their prices by an average of
restraint. In his words:'
'7 '
$100 in return for a commitment

29

Wages, Productivity and

dustries

Financial Chronicle

The Commercial and

(858)

Benjanrn Phyfe;
Benjamin P." Phyfe, partner
Whitehouse

February

&

11th

Co.,

in

passed away

at the age

of

u-

-

Number 5718

187

Volume

.

.

The Commercial and Financial Chronicle

.

(859)

31

Whitehead to Conduct

Public Utility Securities

Course At Hunter Coll.
..Louis. H.

By OWEN ELY

Whitehead

been asked to conduct

New

England Gas & Electric Association

New England Gas & Electric Association is

i,

.it

.

[

whose subsidiaries'

operations are confined to the
State of Massachusetts: The Association is now 31 years old, having
been organized on the last day of 1926.
It started 1927 operations
with1 six utility properties, arid during 1928-35 acquired ten addiing

.

company-

was

owns

the electric and

gas

will

for

in

Framingham and the Hyde Park "district of Boston.

substantial Amount of;

Harvard and

power to

meat packing, cameras,

chemicals,

Candy,

cireainf :ihkstics;^eiedrvntes^and^ha^o,: machine tools* instru¬

ments.

'V'

•

-r:'

v

bb^dous^

impprtant part qf .this^System's business.
It buys gas from Aigohquih Gas" Transmission (it owns 48,561
shares of that company) and Tennessee Gas Transmission; it also
maintains a very efficient standby manufactured gas plant with
ample capacity for peak shaving, etc. Before receiving natural gas
the company had done considerable research in producing manu%

Gas is

..

,

factOT^^^-and

crediting- sale of by-products.

•

;

but

7c

While New England has been

Sept. 30, 1956. 1

considered vulnerable to the loss

in recent years, it has gained many

textile and shoe business

industries, particularly? electronics, and machinery.

new

the

have

greater if degree-days had equaled the

amount for the 12 months ended

ol

1957 share earnings would

20-year average,
would have been 18c higher if degree-days had" equaled the

been

old plants were marginal

Many of

operations using old buildings and

left available skilled labor

antiquated machinery; their departure

The Boston
area and particularly the city of Cambridge is said to have perhaps
the greatest concentration of scientific, engineering and research
talent in the world—including the ability to discover new products
ready to develop

and the

personnel to develop them.v

The City of
\

development of new

$85 million Prudential Life Insurance

clude the company's own new

development will in¬

building plus other office and store

auditorium, etc.
NEGEA expects to spend about $9 million for construction in
1958, but the parent company does not expect to sell any stock this
year. Share earnings in 1957 were $1.50 based on average shares.

facilities,,

On

the

share.

sinking fund payments

basis

same

The

apartment houses, municipal

hotel,

a

common

Counter Market around 17 and based
rate yields about

the regular $1 dividend

ratio is 11.4.

$46

*$1.50

1956

44

1.44

1.00

1955_

38

.

36

1952__:

f

.

.

1950

1.00

18

1.00

16%-14
15x/2-14

1.23

1.00

-

29

25

'-•1947^_;

,1.31

:

•

-

-

16
16

1.00

0.95
'."0.85

1.46

29

-

1948__

*

1.46

31%

1949-:___

1.00

1.32

.341.15

1951_w__-,

^

;

18x/2-17
18x/2-16

1.23

36

1953__

'

1.37

40

i

-

0.80

'

1.31

lec¬
the

American

In¬

turer

stitute of Banking, Mr. Whitehead
is

partner of Cosgrove, White¬
& Gammack, New York 5,

a

head

can

Stock

Exchange.

than

thirty

had

more

of experience in

years

investment research and advisory
work and is in charge of his firm's

the

University

Since
been

1942;'Mr.
member

a

Whitehead
of

the

the New York Institute of

to

successor

ducted

the funds which would usually be finding an outlet in the
equity market, and which went into the longer refunding secu¬
rities, are now coming into short-term Treasuries.

Money Market
The money

Current

in

Economic

market.

Johnston,

con¬

Co.,

Lemon;- &

proceeds from the

0.-40

:

•,

retire

have
as

bank

debentures

The

prior

interest.

to

Jan.

be

1,

well

as open,

market operations.

to

about the lowering of
In addition,, open market, operations so far
the available supply of credit which j

down

cut

not

make

were

Banks Will Need Reserves to Finance Treasury
for

new

money

in the not distant future, will be in the market

and the bulk if not all of the securities which will

be sold for cash by the

The

new

ments

of

government will be short-term obligations.
financing will be tailored to meet the require-#banks and this means the most liquid

money

the

commercial

However, in order for the Treasury to sell siz¬
obligations to the commercial banks,
institutions will have to be supplied with the reserves which

type of security.
able

amounts

these

of near-term

will make possible their

be

purchase of new money government se¬

curities.
0

An

re¬

increase in

the

is in the making beyond any

debt limit

question of doubt, and with the advent of important borrowing
by the Treasury, there will be a lowering of the reserve require¬
ments of the commercial banks.
Sales of Treasury issues to the

1960,

deposit institutions is one of the ways in which the decline in
deposits can be overcome, and the money supply increased.
The
economy at this time is in such a position that some reflation
should be

conversion price of $10 per

a

desirable

development.

All Bond Markets Depressed

share.

is en¬
gaged in the production and sale
of compressed gases, including
oxygen, acetylene, hydrogen, ni¬
trogen and argon. The comnany
also produces and markets liquid
oxygen,
and
sells and
exports
welding equipment and devices,
medical
equipment, and related
Co.,

The offering

of the 3%s of 1990 seems to have had a tempo¬
depressing effect on the whole bond market. Recent new
issues of corporate bonds and tax free obligations have not been
too well received, with some syndicates being dissolved.
As a

rary

prices

result, these securities are now selling below the original

put on the market. It is reported that certain
savings banks which have been prominent in the new issue bond
market are now putting money to work in the mortgage field due
to some betterment in the building business.
at which they were

30,

the

1957,

fiscal year ended Sept.

the company had total
of $9,712,899
and net

Upon completion of the current
financing outstanding capitaliza¬

Mrs. C. Towart Joins

Phila. Inv. Ass'n to Hear
PHILADELPHIA,

of $343,461.

W.

D. H. Blair & Co.

Pa. —Russell

Richie, Vice-President of The

Towart has joined
Philadelphia Saving Fund Society, the collateral loan department of
will be guest speaker at a lunch¬
tion of the company will consist
D. H. Blair & Co., Inc., 42 Broad¬
meeting of the Investment
of $5,799,132 of funded debt and eon
way, New York City, it was an¬
Association of Philadelphia to be
139,878 shares of common stock.
nounced by Philip Egner, Viceheld Friday, Feb. 21, 1958, in the
President.
Carlton
Room
of the
Sylvania
F. A. Melhado Opens
Formerly with Garvin, Bantel
Hotel.
& Co. for the last eight years, Mrs.
Frederick A. Melhado is engag¬
Mr__Richie
will * discuss
the Towart had
previously been with
ing in a securities business from
"Problems
Concerning
Saving Frazier, Jelke & Co. and Stewart
offices
at
120
Broadway, New
& CO. "•
*
•
•
Fund Investments."
%
York City.

-15

-13%

-12%

Mrs.

Claire

•

;

Based op average

shares.



i,

1 ^

.

..

....

4.

4

-

r

.n

•'

v'

:

^

I

.

t

*

,

.

i

To

there have been decreases in the central, bank rate in the

The Treasury,

The debentures

Oxygen

as

for

be converted on or before
maturity or redemption, into com¬
mon shares of the company at the

Southern

to

lowering of margin requirements and the discount rate
any more credit available to the money market.
purely psychological actions which will not have
more than a temporary influence on the credit and interest rate
pattern.
;

may

basic

coming

Policy More Aggressive

banks,

requirements.

tended

These

optional
redemption
prices
ranging from 105% to par, plus

accrued

are

as

The

did

The

loans.

are

to

seem

payments of Joans.

sale of

used

be

proceeds will
added to working capital.
deemable

which

statistics

business

could have put more funds at the disposal of the money market
through the return flow of currency from circulation and the re¬

syn¬

the

of

powers

monetary

last two months, but nothing has been done
reserve

transportation equipment,

to

would

of the commercial
be sure,

equipment at Greensboro; to pur¬
chase new liquid oxygen, nitro¬
and

the

pattern has turned down in previous times,
'it brought with it rigorous action on the part of the Federal Re¬
serve Board.
This consisted not only of successive reductions in
the discount rate, but also the lowering of reserve requirements

pany's Greensboro, N. C., facility;
to remodel plant and install new

balance

that

nothing to loosen the money V:
procedure in the face?*

practically

unfavorable

Past Fed

corporate purposes, in¬
cluding, the purchase of a new
liquid tonnage oxygen, nitrogen
-and
argon .plant
for the com¬

revenues

12%-10

.

It

general

gen and

the favorable side in

the part of the

the defensive.

Oxygen Co.

will

on

on

indicate

When the business

of an underwriting

debentures

doing

help

data

and

interest.
Net

new

This appears to be a rather unusual

Developments

dicate,; yesterday (Feb. 19) of¬
fered
$1,500,000 Southern Oxy¬
gen Co, 6% convertible subordi¬
nate debentures, due Jan. 1, 1968,
at a price of 100% and accrued

the

Its Own

though the Federal Reserve Board is
still very much concerned with an inflationary pattern, when one
looks at the type action which has been taken by the central ;
banks to offset the return flow of currency from circulation and %
the decrease in the demand for loanable funds. It may be that the
existing recession in business will be overcome without the aid of
more ample credit and easier money rates.
This, however, would;.
be very different from the course which has been followed by the
monetary authorities in the past, while the economy has been on

Offers 6% Debentures

manager

any

available

latest

are

the

light.

of

Johnston, Lemon Group

income

14V2-10
12 -10

.

.

all

of

Affecting Investments.

Of Southern

The

authorities

Stock

Economics

be.

on

market continues to stay

spite of the absence of

Finance,

the New York

courses

plenty of

of

has

Exchange Institute where he

go

government

government market continues to
demand, because money which would ordinarily
be used for business expansion purposes is being put to work in
the most liquid Treasury issues. Likewise, it is reported that some

at

faculty

'

The short-term sector of the

have

Pennsylvania.

of

.

lower, and future offerings of intermediate and
bonds will not be significant enough to
affect the outstanding issues adversely.

investment counseling department.
He is a graduate of the Wharton
School of Finance & tommtiOv

permanent hold-

or

obligations.

rates will

est

that

Whitehead has

these

investors

It is evident, also, that certain institu¬
tional buyers have decided to make purchases of the 3%s of 1990
and 3s of 1964 at premium prices, because they believe that inter¬

New York, members of the New
York Stock Exchange and Ameri¬

For

'18%-14%^

$1.05

1954.

a

for

sity, and
Louis H. Whitehead

of

ers

as

supplies.

Approx. Range

Dividends

Earnings

1957

^

Record

Common Stock

—

(Millions)

Years-—

on

The price earnings

5.9%.

Revenues

amounted to 15c per

selling recently in the Over-

stock has been

Univer¬

were

by those who cannot be classified

at

;

through a period of rejuexpressways and highways.

Boston has been* going

venation with the

The

industries and new products.

new

a

faculty of Syr¬
acuse

.

long-term

Formerly

-

the, weather. NEGEA is planning to prepare its operating gas
budgets on the basis of "trended degree days." If there is a sus¬
tained period of cold weather the company would hope to set up
a reserve.,(with regulatory approval);;which would then be avail¬
able to add to earnings in abnormally; warm periods. As an illus¬
tration of. the need for such adjustment, it may be mentioned that
in the 12 months ended Sept. 30,

of

-

.

has* 68,400 space heating customers or about 43%
of totaLrdomestiQ gas 'customers... Last.; year. it sold enough heat¬
ing equipment and water heaters, to increase sales of gas about
5.%, although the weather was much warmer than normal. During
the past ten years the number of degree days has averaged 5,286
while last year they were only 4,670.
Gas sales" and earnings are greatly affected by variations in
The company

v

total

level almost comparable

a

with natural1 gas,;: after

■

week

a

a

member of the

Mr,

printing and publishing, baking, ice manufacturing, steel products,
i cev

eve¬

'

MIT,, the total for these institutions amounting to over one-quarter
of &:ihdu§trial electric; load. Harvard also takes a substantial
amount of steain. ; Other leading industrial customers in Cambridge
are in the following diversified fields:: rubber products, wire and
cable, fasteners; 'soap,

one

15 sessions.

NEGEA supplies electricity in
communities; gas in about 40;. and steam to Harvard Uni¬
versity and: 29 other customers in Cambridge. About 54% of rev¬
enues arey derived" from electric business, 44%
from natural gas
and 2% from steam heating. Electric revenues are about 37% resi¬
dential, 23%- commercial and 28% industrial.
Important cities
served with both electricity and gas include New Bedford, Plym¬
outh and, Cambridge, and with gas; alone, Somerville, Worcester,

a

The government market appears to be

%

ning

about 40

sells'

member

%

The

steam from the generating stations.

NEGEii:

in

requirements of % of 1%.]

digesting very readily
offered in the refunding operation. This is

meet

Cambridge,.-the Cape. & Vineyard Electric, New Bedford Gas
Edisoft Lights Plymouth Coupty Electric, and Worcester Gas Light
Co., all located in the southeastern third of Massachusetts. These
six companies represent by absorption 12 of the units originally
purchased. " Cambridge Steam Corp.; was also organized to seil

.

the Federal

reduction

a

in spite of the sizable amount of these securities which were taken

course

disposed

companies

announced

reserve

the bonds which

Studies.

;f: of, NEGEA thus becoming ah "exempt holding company.
.

Hunter

the

Board

bank

of General

tional, in the meantime disposing of a few companies. On April 1,
1947 the Association \vas recapitalized to conform with the Hold¬

ing Company Act. ;Jh 1954 New Hampshire Electric

Reserve

Davi-

College School

"

er

[Late yesterday (Wednesday, Feb. 19)

by Dr.

Director

son,
of

By JOHN T. CHIPPENDALE, JR.

Feb. 11,

Edward

integrated hold¬

an

in

course

announced

was

again

has
a

investments (which began

'

1

<

/V." .1

*!/

j

1

%

"3

1

'

; " *

'

32

The Commercial and Financial Chronicle

(860)

Continued

from first

lelism—we

afflicted

as

Unwarranted Doubts
is

the

survival

simple

require¬

tion

pursuits in order to
prosecute the war at the front. On

you

peacetime

front

home

the

give

we

the

up

production of those things that can
be spared the better to produce
the materiel needed
"We

convert

extent

the front.

at

factories—to

our

the

be converted—to
the building of guns and equip¬
ment.
We patch and repatch the
they

can

facilities

old

to

them run¬
Other factories whose out¬

ning.

keep

put is not essential are Just closed
clown, the manpower and mate¬
rials
being
needed
elsewhere.
There
are
long lists
of goods
whose continued output Can be

These
are
the
du¬
because those we al¬
be made to last a

postponed.
rable goods,

ready have

can

of

decade

a

We divert manpower from

ment.

boom. Most of
remember the 1920s—it

can

who

delve

into

1820s, following
the
War
of
1812, there was a
period of similar reconstruction
prosperity and expansion. That
period was called "The Era of
Good Feeling." There was a simi¬
lar period following the Civil War.
has

It

been

labelled, "Industrial
Overexpansion Prosperity." And

since

the

have

we

period,

close

ing in the promotion of
rising scale of living.
while

Thus

business
close

inven¬

our

constantly devis¬

the

is

war

measurements

ever-

an

the

on,

will

dis¬

high level of activity,
but
this
war-energized activity
cloaks a deeply sub-normal pro¬
a

very

duction

of

peacetime

durable

II

War

a

that has probably been
lengthened by the conflict in Korea
and the adoption of a "guns plus
butter" national policy. 1
There is one thing about these
one

postwar,

decade-long

they

are

World

of

again been in such

once

things as new houses, automobiles,
Jhousefurnishings, clothes, roads,
public and private construction of
many kinds, and the thousands of
new
models, products,
gadgets,
conveniences, recreational facili¬
people

history will find

that in the early

should note.

ties and comforts that

or

It is

always

seem

overdone.

we

the past

to have been
they last so

Because

long, people

booms

that in

insidiously led to
prevailing boom
normal, whereas
what really happens is the devel¬
opment of a much greater than
believe

are

that

conditions

the

are

so-called

normal

demand

for

peacetime durable goods to make
up
for their deeply
production during the

is also

a

subnormal
There

war.

natural

very

why

reason

postwar booms might be overdone
and
overprolonged.
Thus
with
backlog demands on top of normal

demands

for

end

the

products of

simultaneously a
period of great production and of

business, the existing capacity of
industry is overstrained. So those

great postponement. It is

capacities are sought to be ex¬
panded. And this places still more
demand
011
industry to produce
also
big quantities of producer
goods. Industry must simultane¬

War

goods.

is

period

a

in which the nation is singlemind-

edly engaged in satisfying its
vival requirements.

sur¬

Multiplying the Supply of Money

ously produce to meet current de¬
mands, backlog demands and de¬

the

In

meantime

the

Govern¬

ment, in order to meet its huge
war bills, increases taxation.
But
even that does not provide enough
money, so it borrows heavily. Part
of the debt is lodged with banks
and becomes the basis for

expansion
which

we

in

the

bank

for

use

great

a

deposits

in

money

this

country. During World War II

our

money supply was roughly tripled.
In
order
to
counteract
the
in¬

the

crease

Government

tioning.

imposed
price controls and ra¬
The techniques of this

modern

substitute

extensive

fashioned

beyond the

are

the

for

up

dis¬

cussion. But the point is that when
war is over the nation finds

itself simultaneously possessed

of

One

money.

close:

era

to

comes

a

begins. With the
heavy demand for survival having
a

new

one

been met, the nation turns to sat¬

isfying

its huge backlog

demand

for peacetime durable goods.
The

Postwar

even

or

think

is

here

I

After

the

of

Many

out

worn
up

on

during

deferred
expan¬

sion plans laid aside while
the war
was on. The
postwar reconstruc¬

Boom

ket

new

things. Such

mar¬

innovation

is furthered by the
wartime stimu¬
lus to find
better and

quicker

ways of

ulus

to

doing things, by the stim¬
men's

minds

as
they are
environment to
meeting the war re-

*noved

from

others

in

one

quavrhencs.
And
great

so.

the

1920s

to

came

wars

there

each

has




been

close.

a

reconstruction

of

our

about

of

And

who have looked back

over

booms:

The

sequel, in the literature on
the subject, has come to be called
a
"Secondary Postwar Depres¬
sion." According to the long chart

of

business

activity

by

the

prepared

Cleveland

and

Trust
such

depression in 1826—about eleven
after

years

of

1812.

the

That

about
1874

for

close

A

that

War

lasted
years.

half

a

entered

another

such

remained

we

we

similar depression in
remained for about ten

a

we

years.

the

and

six years. And in 1930

entered

which

of

depression

four

we

over

big part

these

of

the

so-called

reason

secondary

postwar depressions have been

long is that the nation

so

appears to

enter them

with

excess

It

capacities to produce them.

takes
it

time

also

to

of

to

wear

them

takes time to

nation's

sources

tion

relatively well stocked
durable goods and with

new

the

still

abundant

re¬

produc¬

and

newer

out

reorient
and

manpower

But Knowledge Is Power

the

There is a saying that knowl¬
edge is power, and if that be the

then

case

we

to meet

power

business

Forewarned

before.

until

future.

This

augurs

ahead.

Encouraging, too, is the fact that

/

of

construction

in

restraint in the recent period has

It

not

was

helped
period

defer projects from a
when their performance

to

the middle

1920s, for exam¬ would have aggravated existing
that there was such a thing boom to a period when their per¬

ple,

the

Federal

Reserve Board in¬

formance should prove
salutary.
production; and Everyone also knows that our
it spanned only the years subse¬ population
has
resumed
its
as

dex

of

industrial

take

look

a

and

Corporations

the ere

of government.
They
resourceful invention of

pie

them

enable
and

resources

accomplish
tasks

their

beyond

the

The

of

so

production'

power

of

any

small

or

number
paid by
less than 4

dividends

these corporations

cent

labor and

mighty

individual

them.

per

are

peo-'
large numbers 0f
cooperatively to pool their

to

one

at

double

are

ations
the

of

knowledge

our

origin.

steadi¬

public roads, schools and utilities
remain to be performed. Monetary

about these matters is of compara¬

recent

the

and

Most

never

forearmed.

people forget that

tively

in

ness

possible serious large volumes

as

is

assuredness

more

well for the period

with

armed

are

any

decline

the

are

nation's

income '
yet corporations provide
nearly"
three-quarters of all the non-gov- *
eminent wages
The
corporate
the

and salaries
paid
economy is also

biggest remaining segment of

business

life

that

is

still

disci¬

plined by vigorous competition. In
the light of all this there
must

surely be something wrong with
a
generalized attitude of
hostility
at rates comparable to towards
corporations
and
their
the middle 1930s that the records those
experienced in the early profits as such. Their
profits are
were
retroactively
compiled to part of this century. This is a less than
they were six years ago
tell us of the fluctuations in busi¬ mixed blessing.
Although it adds —while the nation's annual
wage
ness back to 1790. It was
only then to the markets of the future, .-it bill has increased
by $80 billion.
that the regularly repeated long also adds to the costs. There will
Yet the taxation of
corporations
swings
of
business
activity be more people to buy things; but seems
unhappily designed not on¬
wrought by war emerged from there will be more people to be
ly to double tax the income that
the record; it was only then that supported
out
of
existing
re¬
they generate but also to erode
students began to understand the sources. In terms of business
pros¬ away
their capital. The income
how and the why of these matters
pects, however, it is a powerful is double taxed because it
is first
and coined the term, "Secondary long-term factor
sustaining capital taxed—to the extent of over half
Postwar Depression." This, indeed, expenditures of
industry.
of it—as it is earned; and then it
is the first time that the nation
Mention should also be made is taxed again when paid out as
has ever come up to the possi¬
of the social security programs of a dividend. The capital is eroded
bility
of
such
a
period
with Government and
industry, and of away because the tax code refuses
knowledge
that
the
possibility the fact that a very
large seg¬ to recognize that it takes a lot
even existed. That
knowledge has ment of income in the form of more of
today's cheapened dollars
already borne fine fruit.
Government payrolls is presum¬ to equal enough depreciation to
ably stabilized. Although these replace
equipment
purchased
Hopeful Factors
cannot breed business revival, they many
years
ago
when a dollar
For
example, we should first can cushion business recession.
would buy much more than it
note
quent

to

1918.

that

time,

It

have

we

until

not

was

not

had

growth,

this

does

did in

The

1929, a great
speculative stock market, financed
as

we

thin

on

money.
of

margins
It

great

with

as

repeating

of

the

times

as

recorded—

by the

stock market
which led ulti¬

if

the
is

1930s

rapid and less
of

the

features

unwarranted.

wish to insure

we

tion

drastic

still

a

more

reorienta¬

onerous

nation's

But

affairs

to

its

collapse in 1929
historically characteristic pursuit
mately to the great difficulties of of an ever more
abundant life,
the banks in the
subsequent years, then we must look at certain
na¬
and which, in turn,
tremendously tional policies to which we have

aggravated the

difficulties of do¬

become

habituated

The

now.

bitrarily

already noted why fear

of

before

ever

have

borrowed

credit—three

engendered

I

Broader View

great collapse

the

was

bank

deficiency

is ar¬
income and

considered

taxed

as

Steel

alone

such. In the

such

of U. S.

case

tax

erosion

of

capital as it turned over through
depreciation
amounted
to
over
$650 million in the
1957

of

1940 to

years

inclusive.

If

we

look

to

are

corporate

at

income

taxation

from

the

broadest possible viewpoint of the
nation's
enduring
welfare,
we

broad

should

also

and fair a perspective as we can.
monetary authorities have been,
What I deeply fear is that in
vigilant in seeing to it that no
the course of nearly two decades
great collapsible structure of spec¬

impair

productive

ing

business

of

all

kinds.

in

as

The

In

the

light

of

all

this

the

troublesome question now is: Are
again on the eve of repeating
that which has been so

we

regukarly

in

our

To those who

waves

note

that

it

tends

to

past?

mechanically give

blind obeisance to historical
paral¬

of

handicap

general credit collapse. But things
vastly different
this
time.

in a period when our
effort should be to reinvigorate the processes of private
productive investment, from which

the

every

additionally increased—this is the
so-called progressive taxation of
corporations—then I suppose that

Home

alone

persons

served

in

greatly

the

to

early

1930s

aggravate

the

are

mortgaging

significantly

practice

shifted

from

has

lump

the

comes

self-sustaining
hand

and,

011

creation

of

new

jobs on the
the other, the

one

tax

rate

them

on

behind

the

would

Iron

be

Curtain

could congratulate themselves that
we in America had reached some

sum,
short
ever
maturity
loans, to
sort of a new high in self-stulti¬
newer
and
better products
and
monthly amortized, 20 to 30-year
fication.
obligations, more like rent. Much services which are the very sub¬
stance of an
of the debt is also
The biggest part of the business
advancing scale of
guaranteed 01*
done in this country is carried on
insured by the Government. The living.

owners'

equities in their homes
thus steadily
growing and big
lump sum due dates have been
eliminated.

ability
on

an

to

So

the

meet

asset

a

question

large

which

is

of

payment

or

has

de¬

preciated market-wise, can scarce¬
ly arise in wholesale fashion as
it did in the 1930s.
These
could

that

we

qther

two

be

factors

not

as

the 1930s. Our

borne
two

fine

I

vital

we
new

fruit

alone

to

well

guarantee

headed

nation-wide

ralysis such

into

an-

financial

pa¬

experienced in

knowledge has

indeed

in

these

areas.

think

next

records

being

show

large,

data

do

that

business

men

it

is

inventories
true,

but

as

the

would

not

disclose

a

situation

require a prolonged
period of readjustment. There is,
moreover,

all

the

look

us

and,

since

look

first

dividual

really

it
at

first

is

must
at

closer

the

taxation
to

home,

taxation

income.

of

Does

believe that

the

in¬

anyone

best

way
encourage 170 million people
to invest their
savings in new

to

creating/ ventures
that

difference

in

any

might
taken

tion
to

cate

make

in

that

to

provide

the

they

money

doing will
them

by

increasing

cent?

per

of

so

from

ever

that

is

additional

away

at

91

you

tion

that

as
a whole have
conducted their
affairs with far greater prudence
and deliberation than ever
before.

The

Let

job-

sufficient
are

through

Taxation

are

better

goods and services to promote its
rising living standards.

repeated

following

turn.

taxation.

next

taxation

'

what

happened after the "New Era"

tion era also feels the
resurgence and
of the characteristic
American im¬ 'the

pulse to devise, produce and

be

what

remembered

us

depression in which

catch

to

troubling the minds of

In

to

must

people.

many

goods that people have had in the

machinery

new

transition

come

past, that

maintenance, to reinstitute

To

case.

now

let's

1953

foreclosures

And

and

different

for

the war,

I

Well,

corporate

20

postwar

faced.
I

close

a

something

issued

they know about, that
they know how to produce, to
which they feel they are
entitled,
and
for
which
they
have
the
money to pay. It is a demand com¬
pounded by the need of industry
to replace, at last, its
equipment

the

be

Thursday, February

.

the
long record find somewhat
similar sequels to all our previous

to

comes

to

ful and insistent known to
peace¬
time markets. It is a demand for

and

capacity;

excess

homes, homefurnishings, automobileSj and so on. Another era

a

This demand is the most power¬

In¬

well stocked with

are

Company, the nation entered

Booms

not

the

.

efficiency and
impede growth. The company that
operates more efficently than an¬
of war and of postwar boom cer¬ other pays a relatively higher tax,
ulative
bank
credit
has
been
and so in effect pays a penalty
tain
attitudes
have
become
so
reared this time. For that we had
widely accepted and ingrained in for being more efficient. Taxes
better
be
thankful, rather than
levied at high rates against effi¬
national policy that it will
prove
critical
of
the
safeguarding re¬
very hard to review them objec¬ ciency cannot help but impair that
straint recently imposed
by the
tively. Nevertheless in three great efficiency. This, in turn, affects
monetary authorities.
a
corporation's ability to finance
namely, in taxation,
Let me next note that it is true areas,
in
monetary and fiscal policy, and its own growth, and this is cer¬
that we have had this
time, as
in
labor policy,
we
have done tainly not in the national interest.
we did in the
1920s, a great post¬
Should we additionally provide,
which
the
nation
could
war housing boom financed large¬ things
is
stand while war and assured boom as
being promoted in some
ly
with
mortgage money.
The
were
the order of the
day. But areas, that as corporations increas¬
spiralling collapse of real estate
these
ingly serve the nation's markets,
attitudes
could
values with successive
prove
a

many

of

shortages of peacetime du¬
rable goods and abundant
supplies

accomplished.

dustry is eventually supplied with
people

the

big

is

process

adequate

press

of this

scope

enlarge its own capacity.
takes a long time to catch up.
But eventually the long catching

old-

printing

money

mands to
It

need

with

considerations

called "The New Era." Those

was

little longer. Among them are such

tive

reconstruc¬

postwar

prosperity

world
between
an
orderly
liquidation of inventories in the
course
of
business, and a fast
liquidation forced
by
a
credit
crisis, from which crisis we have
been saved by the Federal Reserve
those authorities.Because business plan¬
ning has proceeded with prudence
in the past, • it can proceed with

nlight think

of them
"parallelitis"
—the answer must perforce be,
"Yes." But the more thoughtful, I
am
sure,
will find many good
reasons
for
believing that this

page

.

Let

most

be

taxa¬

rates

up

ardent

advo¬

heavy progressive taxa¬
history has known was

Karl Marx.

He wanted

it

because

time

we

our

we

tion's

gave

full

initiative.

not

we
we

dividuals but also

lus to

the

same

a

similar stimu¬

individuals when

acting as a corporate group. So a
long hard look at corporate tax¬
ation

is

also

needed

if we are

to

the prospect
of subnormal business activity.

skip

or

Let
not

me

seek

minimize

add

one

caution.

reduction

tax

I do

resulting

government deficits and infla¬
tion.
We should instead seek to

in

to

ter

thoughtful attention

present
are

so

confiscatory rates

help destroy
enterprise by penalizing
the more industrious and
under¬
mining productive incentives. It is

if

and

whether

s(fa
productiv
incentive for each producing un
that
is
possible without
mining a similar incentive for a
other units. Let me quote a seg ¬
ment expressed by Sumner Slic -

he believed it would

private

to

ourselves

really want to handicap ourselves
unfairly,
corporate
tax - wise.
Surely in view of what we may be
facing we need and want not only
the maximum fair stimulus to in¬

remind

me

corporations,

ask

stifle

productive

the

na¬

genius

and

re-devise

our

tax

systems

to leave the maximum

^

in

way

tax

a

Winthorp

back in

1942.

Ames lectui^
He said:

history of the United

States

v

i

Number 5718

Volume 187

.

.

The Commercial and Financial Chronicle

.

recent years- has been fairly sen-

sational.
A visitor
would suspect

,

from

Mars

created by
supply.

of demand

excess

I

over

(861)

Continued

//."

from

page

14

33

probable

that some further steps
monetary ease will be
taken, possibly in the form of
lower reserve requirements.
No
return to the cheap money of a
toward

^that,/a Communist

These are matters of profound
importance to every citizen and
especially to every one who lives
private enterprise unworkable. I Through the wages he earns. There
v
few years ago is to be anticipated,
least twice previously in the dozen petus
am
not complaining ^alxmt the - is> however, one .
.for-the next boom (quite but it is a fair presumption that
aspect of the
general
matter'which is of particular con- years since the end of the war. Possibiy atomic energy and space the
availability of funds will imam complaining of the extraordimost
recent
of
cerh to me in view of the busi- The
these, in exploration) had not yet become prove somewhat during 1958 and
nary way in whiqh taxeshave been ness transition we seek and de- 1953-54, carried the Federal Re¬ effective.
At such a juncture al- that the
prime rate will be re¬
modified to h^r
-h^vUy on any sir^ in this land. It is the seem- serve index of production from tentions in public psychology can duced. It would be a mistake,
137 down to 123 over a period of occur more easily
enterprise
individual .whq/dis- in'gly
and exercise however, to assume that business
endless
and
irresistible
plays daring, bac^s -an, innovation wage-cost-price spiral of inflation 15 months, and raised unemploy¬ greater influence than at earlier
activity will respond directly to
ment to 5% of the labor force. periods m the
or
boom, aiid there is this credit factor alone,
experim^V^j^ially
wrought primarily through labor
percibent * which-_ is^pretty *eertain power. I see this spiral manifest This readjustment was occasioned more than a shrewd suspicion that, / r
>
>
v>
to experience ?• losges- for a few: ^ the affairs of II. S. Steel. Year by a drop in government spending a-growing uneasiness among both
'
■
v
Price Level
;
/
for defense and the correction of businessmen and
years.*' - F^teen^years^lmye^gone *
consumers, a eer- / * The price situation as the . year
ter year, in peace and in war,
by since those words were aaid. in periods of good business and in a top-heavy inventory situation. tain degree of disillusionment with obens is somewhat mixed. .'Eleven
Maybebf ^had;/"the letnploj^m&dt If our present situation is anal¬ the present ~ Administration
in of the 13 commodities in the BLS
them;-;*
ogous to
1953-54 then we may Wa s h i n g t on, worry about the index of industrial raw materials
y
j>^a%cosj/,;Per i4iour n^arfches:/steadily consider that a
readjustment which foreign; situation,
perturbation fell in price during 1957, with the
Monetary .attd J^iscah?phQy ./
C°Sts has already been under way ior over contract cutbacks, disquie- greatest declines in the metals and
.a
up with it. Since 1940 our emI wouldsome time (the high point of the tude
over
the racial integration ipbtoer.f; Nevertheless' the general
Jook ^oyment costs per hour have adatthe broad
s^^^^e^pohcy yanced on the average at a rate Federal Reserve index was 147, in issue, fear of Democratic political all-commodity index of wholesale
and
publie^a^rwfes towardy it. of over 8% per annum corn- December, 1956) should be com¬ gains, all were triggered by Sput- prices at the end of the year was
One ;b*g..part of that polioy^ ,'have ptmnded.
Surely a resourceful pleted no later than the middle of nik into ~a. very conscious and only fractionally off from, the
fifth .columnist-■ was -writing the
laws for the purpose of-making

1958—A Critical Year
.

..

,

.

.

,

,

CS?J.tf ?Siotlier

.

.

„

^xhinvite^purto

,

alre^y;

American people
way to check this

anev£P

on

that' the once

selfrrejiant hhd in-

can

find

some

insti^tibrializied-

inflation and do it, with justice to
every one concerned. And surely
this is something very important

dependent - American.-- P^dPle- have
come to rely bhn^ly-npon
^>veivir. to consider on the eve of what
ment to take c^e of everypody. might otherwise be our entrance
Is this really whah we ;wapt, in our. into another serious economic de-

1958

should

and

be

followed

by vocal dissatisfaction with the: ex- high of 118.4 recorded in August
an upturn in the second half year,
isting state of affairs. That this (1947-49=100), ' and
the
retail
under the impetus of increased; alteration jn public psychology pl'ice/index was at its all-time
defense spending, depleted, inven-. has had some effect on both con- high of 121.6. Obviously the upsumer and business behavior dur- ward; trend
of wage rates over
tories, and easier money rates. /
_.

mg the
last several 'months is
"
something more than a "roll¬ entirely probable.
ing readjustment?" The consensus
Effect on Retail Sales *
:
conntry?\Is: this, really: the/\yayi toc cline. For in terms of ordinary of informed opinion at present
promote the transition .we seek? common sense, is there really any seems to be giving a negative an¬
Now all of tills Is simply a long
Has not the .process,. ,<n; -doflcit better
way to handicap a business swer to this question; but I think way of saying that although the
spending -be^r . tried , put
and readjustment than to provide that we owe it to ourselves to take a general concensus among ecoplayed ^ut. Gonsiderythe^,astro- everything, willy-nilly, has got to good look at the possibility of a nomic observers looks for this to
nomicaly debt we have^^hlready cost more to produce and hence more serious deflationary episode be another rolling readjustment,
achieved. Consider: th^ threat of; be sold at cost-covering
price in- than we have yet experienced in reaching a bottom in the first half
endless inflation; with which its, creases
in
markets increasingly the postwar period.
The typical of 1958 and then turning up, you
renewed fast expansion would be saturated?
rolling readjustment, so called, is should not close your eyes to the
regarded by an awakening public.
one that takes place in correction
Conclusion
possibility that this time a more
Consider
the
fact
that in
the
of an over-extended position in fundamental type of readjustment
course of the biggest /and ..longest.
^ come to the close of these one or two sectors of the economy may be needed, going farther and
so
boom our country has ever ex- „emarks.
n°ie that * of either at a time when industry as a lasting longer. I am of course
bave
far made
no
mention
perienced and with the highest,
whole is still somewhat short of aware of the very great differeven confiscatory,, tax rates ever
needed capacity and there are still ences between
^
our
present-day
imposed in peachtime^ there has
if
r° .lvV\a in the aggregate many unfilled economy and the business strucbeen ho •'sigriificdht/ rddiictibixihv
demands. But is this the case to¬ ture of the 1920's and 1930's, difu
day? Capacity in almost all-lines ferences whicli make a repetition
^repose fond--and, I .©hE blind— has witnessed the declining lead- of production is more than ade¬ of the experiences of the l:930's
dcohfidehce in gbverhmerit "spend- er^11P°Ithe British Empire the quate to meet present demand, vastly unlikely; but I do not think
ng as the sovereign cure foV ecoend of the long Pax Bntannica. and consumer inventories of du¬ we should dwell so
exclusively on
lomic ailMehts/\tet
the Ruthless despotisms have-concur- rable goods are at a high level, at the differences that we fail to
record: From
1930
1940 the rently arf™to d^m}1^te,InSfiy the same time that consumers
recognize some of the similarities
Federal debt was: nearly tripled to PTe<iP
end of
War seem to be more conscious of ex¬ of antecedent conditions/when
But

are

we

confronted this time

.

with

.

„

.

^ l^JV8 th,e ™haPPy

^
Sj£

^

?

.me/lte

augment
gpvernmeht spending.
But unemployment' TQSC^nbt de-

i

clined—from

to.8 mil-

million

lion people.
the factualIr^fd

to the conclusion that the spending of tax money and ^printing
press money to support

people in
a
non-productive / st$tu£ ' shryes
more to perpetuate ;them in that
status

than

to : secure' their

employment'

f

w

'

re-

;

1

So we had better earhestlv -review this part of fiscdl~ policy. If
do

-

of ever

a

governmeht

must

come

constantrarid:insistentpub-

lie demand that
any government

Kvaste and. inefficiency be driveh
lout, and that the true job of gov{ernment is" to defend land to gpv|orn the nation '—^,and very little
else, let alone to engage in an ineentive
I

of

hensive attention. We call it cold

It is not within my power
to prophecy what alterations in

™ar-

that posture may occur; and

so

other presumptions.
cold

war,
,

hot war,
.

,

light of
Whether it is
or no war at

,.

people's income.
> be a 'release of
Productive incentives so that real
income

rapidly
thus
relatively . lighten the
•burden. /
,*
..v.'v\
may

and

grow

tax

,

should still seek fiscal and
monetary sanity avoid mcentivedestroying taxation and find fair
ways ^o;corb destructive wagePrice inflation,

Labor Policy

need re-experience another 1930s.
On
the contrary, armed with

can

,

next to

one

be

can

growth

of

giant

Unions, headed by
Possessed of great
to

outdo

labor

leaders

who,

in
lefficTaffSpec Je 1ddustries. The
\vithi^,VK- and ^social framework
DpIc
•ey luuction comthiQ r-^c^+c.°mpete in elevating
trv
nn
is basic taall mdusbasic
? consolidated -industry
asis
•

employment cost represents
than three-quarters of all
and

"it

as

Prices upward.
called

rises

it

This has

cost-push

^stinguished

developments.

? from

XT

come

inflation

Edward H. Heller,, partner in
Schwabacher & Co.; and Jan
Oostermeyer, former President of
shell Chemical Corp., have been
elected to the board of directors
0f The Siegler Corporation, it was
announced

by

John

G.

Brooks,

president

proves

to be

.

Por
^be Jh°st reasonable
forecast is one of price stability;
the pattern of advance established
J11 the last two years seems to
have been broken, but no general
downtrend is as yet in the makQuite plausibly the wholesale
P^ce index will ease a couple of
points during the year, but it
there is any change in the con¬
sumer price index it is likely to
he a fractional edging up. If this
appraisal is correct, any changes
m economic magnitudes m 1958,
.

wRl have less of

a

price-change

element in them than has been
the case for the last t\vo years,

(Parenthetically it is possible to

previously
experienced
in
the
postwar years, we should bear in
mind the fact that the retail industry,

isbed goods, with what ultimate
consequences still remains to be
seen.
/
;

a

longer and more severe type of
readjustment than the nation has

of

has given rise to marked diverSence in price movements between raw commodities and fin-

:

being the first recipient
spending, will suffer.

dca ®

reversal of inventory building that

4 ® °bl

u

SI 'm-e

it

lsPmore

a

of the "better l fe- which

"^memnowenlovthan iTi^a
ul

^ lce

f

cha=

retail

the

cllanSe 111 the retatt

Aeverv

consumer

less attrition in sales volume than

-

.

.

Major. Spending Flows

most other sectors of the economy.

tories

have

not

risen

greatly in
relation to sales, though if sales
should decline considerably, this

*

-

:

Against this general background
••./,;
suppose we now proceed to assess
1"
probable changes in the major
Before examining the outlook flows of spending for 1958, some
for the basic flows of spending in of the pluses and minuses that
•.

■

.

will enter into the composition
of the gross national product, remembering as we do so that we
are working] on a very large base,
The gross national product for
the year just closed was about
a small
deficit at the end of the $435 billion, with a high of $438
to give us some pause.
Although
the
situation
probably involves government's current, fiscal year billion in the third quarter; so-

might be given.
So 1958, we need to orient ourselves
respects the typical "roll¬ briefly with respect to three siging readjustment"
pattern does nificant guide posts, namely, the
not appear to fit the current sit¬ government
budgetary situation,
uation very aptly.
money rates, and prices.
.
In all probability there will be
There are other circumstances
appearance

in

some

next June 30.

For the next fiscal

bear

in

mind

the

fact

that

even

H. G. Hoffman Opens
Henry G. Hoffman is conducting
a

securities business from offices

the/:- better at 318 West 75th Street, New York
City. He was formerly with First

by /rising




?

prices

fact is that we have
a

Investors Corporation.

great

of

1957,

in

response

to

uation

seems

to

demand

such

Por

a

the

current

government

move. During a considerable part fiscal year defense spending will
tight money, decreased produc¬
of this calendar year, then,
the b® a Rttle above the $38 billion
tivity, higher wage costs, and cur¬
be paying out that was projected probably $39
tailed earnings. All this is much government will
more than it is taking
in, a fact billion, and for the next fiscal
in the classic manner, as is the
which presumably will tend to year it is certain to go up by at
sharp break in the stock market
stimulate business activity. Quite *east $2 billion and more, probduring the second half of 1957.
clearly the debt limit will have ab*y .$•* billion, or even more if
(Remember that the stock mar¬
to be raised, but don't forget that tbe
international situation conket paid
relatively little atten¬
the ratio of the debt to the gross ^ues to deteriorate.
Any idea
tion to the rolling readjustment of
national product is currently much tbaJ Congress, in an election year,
1953-54.)
In times past such de¬
lower
than
in
many
previous will cut back other Federal spendvelopments
have
usually been
associated with
the end of an years. It is fairly clear that there "}g programs, such as agricultural
are
three things that we cannot fid, m order to provide for addiover-expanded capital investment
have simultaneously: (1) the con- tional defense spending within a
boom.
sumer continuing to "live high on balanced
budget can quickly be
And we must not overlook the

psychological aspect.
been

to
as

.

lNamed Directors

forces

^nown: den^n^rpulL type of the
caused
Past

P°licies to suit the characteristic
broad swings of postwar business

power,
seek
each " other in

thr>T?^n^ employment costs

6

But even if this

/ /

to be the same occasion for

masters of our destiny.
make it a better destiny quarter

of the most

American history—the startlingly

costs

not

does

appear.

in inmaterial prices, and

raw

lower profits, a budget deficit is only to 1957 in its economic magjust experi¬
almost certain; conceivably it may nitude.
boom in capital
knowledge that has already been
be accentuated by a tax cut, if
.
Government Snendin"
utliized in a safeguarding way, we goods spending, and that boom has the business
(and political) sit- a
ernment &penains.
just turned down, in the fourth

as we thoughtfully adjust our
extraorditiary phenomena of overridmg national attitudes and
come

m°re

Furthermore / there

seem

enced

We

•-

always

:

they begin to

dustrial

Reviewing the array of possi- some need for inventory adjust¬
year,
with the Federal budget if we should anticipate a drop of
bilities, I find no good reasons for ment, the major problem does not
projected at $74 billion and with as much as $20 billion in 1958, we
There supposing that we in this land necessarily appear to be one of
tax receipts declining because of would still
have a year second
inventory adjustment. The basic

the

rapid

>

I appeared in 1954. Thus far inven¬

,e

'

isting debt obligations and less
disposed to incur new ones. Also,
the unrelenting wage pressure on
consumer goods prices at a time
when
consumers
are
showing
some
reluctance in buying is a
kind of maladjustment " that may
take considerable unwinding. •

less responsive to changes

destroying redistribution

-

jshould, instead

I

Prospect seems still some time
away* Powerfully armed Good
af / Twfi
armed Evil now
^an4 fatf/uUy poised m appre-

-

lightening the totar bur¬

of

fr°m

faP

hav.® sP°kf.n on the presumption
we
m^uncdv^r'%e reallts ooatmuance. • .But as I rethatthe'-only dufeBlffhopc view what I have said I find little
that I would alter in the

ization
den

Pax Amenbe accepted and so

a HPr^Sgressive

'Herwhohs:.wHling.;to".^er m a new brigit period of
^ fofted buman histroy. Unhappily that

llface

we

World
"lhere was reasonable prospect

recent years has made both retail
and general wholesale prices far

remarked

the hawg," (2) adequate national
last defense, and (3) a balanced Federal budget.
Your guess is the
boom
same as mine as to which one of

It has often

during

the

couple of years that the
getting tired, the forces that
these will go by the board.
gave
rise to it were becoming
^
j
,
Now that the Fedeial Reserve
spent, we had reached the dan¬
gerous "in between" years, when authorities have decided that their
the fires under the old? boom had battle against inflation can be re-?
grown cold and the big new ini- laxed for the time being, it seems

was

at

iu

^

dismissed. State and local expenditures are still on the vise,
and probabiy^ wili go up at least

f

ll

*•'

Pa

aPs

f°r *be first ParJ

? Hi

i

calendar

year, government spending at the
jeasj. wpi be leveling out from ita
recent
j

'

decline, and for the latter
,

Continued on va p

OA

4

34

(862)

The Commercial and Financial Chronicle

Continued

from

page

federal

33

income

taxes

is

for

likely,

tnough that necessity may have to
be faced eventually as the ex¬

1958—A Critical Year
of

part

the

it

year

should

be

and

months,

new

have

housing

for

1957

one

million. For 1958 the number

probably $4 billion.

of

new

Capital Goods.
Business

spending for plant and
turned down slightly
in the fourth quarter and is fore¬
cast to take a much sharper drop
equipment

in

the first

increase

for

less than
an

1957

over

lion

is

forecast

by McGraw-Hill
drop about 7% in 1958, or $2.5

billion.

capital

Much

process,

little

this

of

spending
of

reason

is

business

already

in

course, and there is
to suppose that most

existing plans will not be carried
out.
Following the recent turn¬
around in Federal Reserve policy,
somewhat greater availability of
funds

be anticipated as the
year goes on, but no return to the
easy money conditions of a few
years ago is on the cards. And in
any event easy money is not itself
a

may

cause

of

liberal

factor.

be

of 22% in 1956 over
1957 figure of $37 bil¬

The

will presumably

money

vorable

spending

for

capital goods.
The chief holdbacks to this kind

of

outlays in 1958 will be (1) the
existence in many lines of indus¬
try of fully adequate or excess
capacity to meet any nearby an¬
ticipated demands and
(2)
the

slated

for

be

a

and commercial fields. School and

is to

construction
probably
increase, however, though it
be borne

in

mind that

pro¬

of the federal government

grams

areas

may

sentiment.

sumer

Despite
residential

the

J

of

then

.

.

.

are

on

the increase.3

"

""

"turers to carry on with; capitalin<

.

,

Cannot Predicf T.vpe of Recession

This
the

It is significant that during
of
1957
total consumer

kind

tacit

of

need to -be replenished and will'
give, encouragement, to. manufacvestment for the future/

Gross Margin. Competition
will
arithmetic unakes be tough and inventory, trimming

assumption that

we

,

will be conducive to markdowns,

are

October

Company,
major road

experiencing; nothing

credit increased by less than $20
million, as against $120 million in
October, 1956, and $400 million in
October, 1955. For the year 1957

Walter Hoadley, Jr., Treasurer of

Cork

tion,

of total output.

early part of 1958; especially

1957?

upturn the
building

the

remains well under its
peak years of 1950 and 1955. Mr.

lour

living

consideration. Will people take on
more debt in 1958 than
they did in

con¬

industry

the
Armstrong
points out that

maintain

might happen in

(4) Consumer credit is the next

-

recent

sector

and

This

and hold about even on construe-

would

cial assets

outlays in 1958 would
$49 billion, but this could
by any continued de¬
business

order to

-

still be the second. best' on vecord;"
in terms of this monetary ."measure

altered

in

goverhmeht^s^!hd-;j sohal income increased

since savings in the form of finan¬

the

construction

terioration

in

standards.

light of defense requirements.
Perhaps a fair figure for over-all

be

dp and per-

that a ;sho\Ying of
somewhere beconsumer; spending tween 1 % and 3% down would
not
have to vin^reaae ^pnly: $3 ^surjpfise.me.; The consumer
holds
billion to make the total economic .the-key,•not • only"
fbythe fortunes
activity of the year approximately^of retail business :in .1958 but in
the same as in 1957." And rcmehi- a -larger
sense! to -the fortunes
ber that even if ,the totalVgross. of the-total,
economy. Well-susnational product dropped as much tained consumer
buying will hasas $20 billion, the year 1958 cwould
) ten -the i jtime ^when inventories

what

be reviewed in

the

be $48 or

move

ing will rise about $4 billion, that
will offset a possible ..drop /of $4

lion

highway

in these

was

1957;®

(3) People saved about $20 bil-*
of their personal income in
1957, something under 7%. At the i
end of the year the rate was de¬
clining. Clearly there is still some
leeway here, if people are so dis¬
posed, to cut back savings some¬

in

1958, particularly in the industrial

will

these
secondary
might expect
department store sales to run ahead
of
totahrfetail sales,a period

,
from a
$336 billion rate in January to a
$346 billion rate,in Jhly,
aepartbillion
in
business
outlays^.fprt ment stores were able to increase
plant and eq uipmerit.. ff ,we ;their sales by only 2%;I
believe
nomic sense if business deteriora¬ squeeze $2 billion out of
iriveh-ythat a break-even sales performtion continues irito the second half
tories, probably an outside esti-y aiice as-against last year is about
year.
.
'VV-'.7
y;v\;;:>vv mate, reduce exports by $1 billion, the best that I would hope for and

to

recession

some

some of

one

be a budget-unbalancing tax
Though the reasons for such
action would be mainly political,
the step
could make good eco¬

fa¬

seems

1958

conspectus fof
the major flows of Spending for
such
1958, it is at once apparent that as the first half of 1958. But
rethe balance of pluses and minuses membering that
during the spring
does not produce d; total that yisriof. 1957,;;when total
business

cut.

Non-residential

however,

Thursday, February 20,

.

it not for

With this general

may

or

Somewhat easier mortgage

crease.

construction,

6%, in comparison with

to

slightly
over, and repair and moderniza¬
tion
outlays will probably in¬

was

1956

million

one

The

increase

1955.

to

quarter of 1958.

close

out

housing starts should again

be close to

B.

come

boom,

a

.

factors

panded defense program develops.
Talk of a tax cut, on the other
hand, has died down, in view of
budgetary realities. Yet conceiv¬
ably
if
the
business
recession greatly; different ftfbm
deepens as the year goes on, there saythat total

starts

rather strongly up. The minimum
increase for the calendar year is

expecting it to spark

it did in 1955.

as

.

ous than
another .rolling: type of gross margin. On. the other hand,
readj ustment, certainly ^mothing r .the ? merchandise mix, with a
more serious
(and quife ^possibly greater
admixture ^of ; apparel,
a good bit less
seriods) than the should lead ;to higher
mar-

Total

consumer

credit

.

1954

episode,

when

the

Federal

giii, and the state of the wholesale

Reserve i

index, ayefageridriC Ifnarkejtk^^peiihit^Pihh good
dipped from 134 to; 125, uft- buys. So perhaps we should
say"
employment averaged 5% of the that no change in gross
margin'
labor force,
and gross 'national percentagewise is the
likely outproduct (in terms of 1,956 prices).; come. ; !?\ ■£/;•
year,

outstand¬

ing at the end of October was $43
billion, about $12.5% of current

business

a' lower

.

be less than $2
billion, as compared with $3.2 bil¬
lion in 1956 and $6 billion in 1955.

residential construction will again
contribute in a major way to a

pioiht- to

.

the increase may

blocks need to be removed before

^ore; seifeihese factors

-

boom, namely, (1) tight
(2) high and rising build¬ personal income of
$345 billion at declined by $6.-4 .billidtfj^Njipe
Expense. It requires no crystal
costs,
(3) lack of effective the annual
read
rate, almost exactly the present
j^tment, hpweyer,,. ball ^to. predict that ^ expense
marketing devices to facilities fi¬ same as the
corresponding per¬ should prove to be
^.^-ifMh^^' - percentage, will .rase-in. the spring
nancing and sale of houses, and
centage at the end of 1956. Thus mental 111 character, then ,:these 0f 1958.
Because wage advances
(4) the relative ineffectiveness of consumer
credit, while still grow¬ comforting
^ajagies rnay
® will stiil be taking jplace it will
competition in the building in¬
ing, is advancing with much less applicable.
substantial tapering of plant and
Presumably^ a piore pr0ve difficult for most stores to
dustry .2 ..
rapidity than previously and for fundamental type of readjustment
dollar expenses in line; and
equipment spending during 1958,
the past year has maintained a would involve- a larger ultimate
and I should not be surprised if E. Foreign Trade.
tf sales slack off a bit, the-per¬
constant relation with consumer ch op in capital
the annual rate of this
_spending,_ greater centage cannot help rising. Here
Though foreign trade plays a income.
spending
This
is
not
a
picture inventory liquidation^ higher dd- and
was lower
by at least $5 billion at distinctly minor part in our total which
there, however, • ;some comsuggests that increases in employment,
and.
considerably
the end of 1958 than it is now.
panics that really tackle their execonomy it may be remarked in the total
burden of consumer debt reduced
consumer
expenditure,, pense problems from the standMost important is the
point re¬ passing that the fall in basic com¬
will powerfully augment spend¬ accompanied, perhaps,
by aJi apcently
made by Martin Gains- modity prices in world markets
point of making "an agonizing reing in 1958, as was the case, for preciable declipe in PricgSA < To
brugh i
,that
business
declines and the restrictive monetary poli¬
appraisal" may be able to back
instance, in 1955. Indeed, a de¬ find any historical analogy for this,
which begin in the capital
this trend >
3.^ <
goods cies in a number of countries cre¬
crease in the total amount of con¬
type of recession, it is necessary
'
'
sector go deeper and last
T
'
.
longer ate problems of payment which sumer credit
outstanding is not to go back at least as far as1937,
than those that begin in the in¬ may operate to reduce the
farm"ss- 1
ti1
ex¬
unthinkable, though there is no and conditions have changed' so. P
ni^'C\Vdoubt tha^t
ventory sector.
port trade balance, thus contrib¬
evidence that consumer credit is enormously in the 20 years inter^
tP fom€!
m
.J*
uting a small minus factor to the
C. Inventory.
shaky.
vening that no useful parallels can of 1958. .It has been
total equation.
1
be drawn. In
Consumer Spending
a& honesty-I think it. rf.CqP! y®ars .
Inventory accumulation during
^
is not possible at this
1957 was not excessive
poiriU'to'spy.• shghtly .by
(5) But consumer purchasing
although, F. Consumer Spending.
with complete confidence
as remarked
earlier, the relation¬
Personal consumption expendi¬ power does not automatically get
improved'^sales
ship to sales gradually worsened. tures in the
translated into, expenditure; par*; .these:-^types of
year just closed were
ment we are facing.
During the first three quarters the not far from
; -J;
dM|ie.se
$280 billion, roughly ticularly in a time of business un-Aare dim.' So with expenses alniost
anuual rate of
inventory increase divided $35 billion to durable certainty. There is the important
y
:
certain 'to;; go
up,' this,': coming
was
matter of consumer attitude. As
substantially less than in 1956 goods, $140 billion to nondurable
or
Coming, then, iiiore
far back as the spring of 1957 the
1955, and in certain lines there goods, and
$105 billion to services.
to the first half of
was apparently considerable
1958,'li-believ.e
liqui¬ Much of the 1958 outlook depends study of consumer attitudes and
P-I'
HV© shall see dliri " " 2y
~ ***
- 'dvAirnmnnr f-' At
-nPinnrtTTiPnt.- ' RtOTG
dation during the fourth
quarter, on how well consumer spending buying intentions^' made by the
which contributed to the
Survey Research Center of the a further decline
signifi¬ will be maintained.
ness
cant drop in gross national
something 01
prod¬
(1) PersonaT income, with a University of Michigan indicated
uct from its high of $439 billion in
a shift in
the direction of "cau¬
Production—A drop in the Fed- i.
I suspect that most in the
current annual rate of about
$345 tious and
the third quarter.
moderate expenditure," eral Reserve index from .the-ie- industry,, have already-laid out
Although inven¬
billion, has been slipping a little
tories at present are not
an
attitude that almost certainly
impor¬ for the last four
months, and this has been
tantly out of line with sales, they
reinforced by the events
decline will be extended into 1958
have been kept that
of the past six months. Consum¬
way by some because of
growing unemployment er
rather severe cut-backs in
purchases of automobiles, appli¬ between 4:
pro¬
and shorter
/2
and 5
work-weeks, the ef¬
million/;
duction, especially in the fourth fect of
ances, furniture, and other "big
^
dons dictate something different.
which will more than off¬
Gross National Product—A dequarter. Of course, if sales should
ticket" items are governed more
The principal interest centers on
set wage advances. Nevertheless
cline from the third
quarter an- the second half of 1958.
deteriorate
further,
inventories for
by expectations of the nearby fu¬
at least the first quarter and
nual rate of $439 billion to about
could again become out of line
ture than by actual current in¬
probably for most of the first half
$431 or $432 billion at the low :
Second Half of 1958 '
and further liquidation would be
come. Hence the hard
goods out¬
of 1958, personal income in dol¬
in order. With inventories it is al¬
look for 1958 must be considered point for the half year
.
In the main> as
lars
will
be
see it. we are
running somewhat
Peisonal Income
A continued
ways difficult to know how high
rather dubious, at least until such
ahead
of
the
'r0lying 011 three factors to tinn
1957
months.
In
is high,
tapering off, bringing the figure
time as there is a
especially since a growing
clearing of the
the situation around before that
assessing the outlook for personal
economy, like a growing business,
economic skies. The single most back to even with 1957 sometime time:
income it must not be
namely
(1)
easier credit
forgotten
has legitimate occasion for
important hard goods product, of before the end of the second quar- conditions, (2) inventory deplelarger that
manufacturing industry,
ter.
inventories.
Whether
v-'
inventory where most of the
course, is the automobil^ and al¬
tion,
(3) ' increased' government
unemployment
liquidation will prove to be a sig¬
Department Store Forecast
though Detroit is still talking in
is appearing, is no
spending. Without trying to guess
longer the ma¬
nificant minus factor in the 1958
terms of another six-million-car
In this situation what is it rea- whether. these factors will in acjority employer of labor; employ¬
business equation depends on the
year, I should be willing to settle sonable to
ment in distribution and services
expect of department duality turn the business
rea
course
of business itself. Unless
for 5V2 million. Here as elsewhere store
business in the spring sea- hack to an upward path by
now
predominates, and such em¬ in
there
is
a
continued
the hard goods field the
general
higher son?
,> •. fall
season, I think certain com-.
ployment does not fluctuate so
downward spiral in business, it is
retail price tags
resulting from
much as
Sales. Sales of apparel and other 'merits may be offeaed.
manufacturing employ¬ wage
hard to see
^
increases are not helping the
inventory decline in ment.
soft goods are
Also, of course, the opera¬
1958 accounting for more than
likely to keep pace
First of all, easier moiiey
outlook.
$1 tion of social
with the higher personal! income
security measures
or $2 billion.
ditions, assuming that .tney
For soft goods and services the
has helped to loosen
figures that will characterize the velop, will be a facilitating rai
any close de¬
is
different.
pendence of personal income on picture
Consumer early months of 1958. This trend than a causative factor. VVe ieaiii
D
Building.
outlays may be expected to keep will be favorable for
manufacturing activity. On the
department somewhat
painfully during
Construction in 1958 should at other
pace with income, and hence some store sales in
side of the picture the
the spring season; at years of money .and credit ^exp
pos¬
least hold its own, in dollar terms
sibility must not be overlooked increase in both these sectors is the same time,-the sales of hard mentation in the 1930
if not in
s,1
f;indS
physical volume. For that
increased labor strife in 1958 probable for at least the first half goods will be no better than
even, the most plentiful and cheap
some two and a half
^
years begin¬
may cut income in some degree. year.
and more
probably off somewhat, will not automatically si*u
ning with 1955, home building ex¬
All
Also department stores in
(2) Disposable income will at
iq all, consumer spending
the re- revival if businessmen are ai
perienced a decline; but a turn¬
g
will be a
least keep pace with
strong supporting factor cent past are not quite keeping clined to borrows So opportu
personal in¬
around has been' evident in
recent
in the 1958
come.
economy, but there is pace with the whole group of gen- and profit possibilities are e
Certainly no increase in
certainly no present justification eral merchandise outlets, possibly tial. If these are sufficiently
somewhat

cloudy prospects for
business profits, especially in the
light of projected wage demands
for the coming year. In
my opin¬
ion, these holdbacks will cause a

money,

ing

.

.,

M

,

whic*'of?»d

-possible^
^
virtue,ol^ettei-fgr

■

-

.

SpecftkSi^

,

.

f

configure of X39 to

.

,

,

—

'

.

,

'

_

^

YiIh\B?.Stner
Board
Board,

In?

me,

1957 >

1957),

<New

p.

86.




Conference
-

2 The

York,

Business

National

Outlook—19S8

Industrial

Board, Inc., 1957),

pp.

25-29.

(New

Conference

because

"S

3

ber,

Survey of Current
1957,

pj.

13.

Businessj Decem¬

stores
ence

of the department
continuing to experi-

many

are'

"downtown
*£l

trouble."

Were

able, easier credit will help

the ball rolling again at
clip. If, however, there is a

j

:
r

&

•

Volume 187

Number 5718

T7ie Commercial and Financial Chronicle

.,«

period of adjustment needed be¬ certain goals,
fore

such opportunities again ap¬

be

not going to

we are

able to hold

our

own

attractive, important results petition, either warlike

pear
from

relaxed credit policy will ful,

a

with

dedicated

a

in

or

(863)

IftA

IUH

com-

peace-

HcpicSGIIIaYlvG:
J lllf

directed:;.

immediately forthcoming.
economy. I do riot think we have
Inventory depletion:, is a much as yet begun to realize the full
more v certain
cause ; of
revival. picture (partlyi because our leadinvestment
When inventories have been pulled ers have; been afraid to give us

oa

w™ingk>n

,

clown, the orders flow back to the
factories, There is much reason to
think that many; businesses today

facts), but

reuresentatWe of

euarantfef staff
ConnerLtion

time unfolds I

as

«

'the

again be the same as
be beginning to draw down before Sputnik.
their inventories faster than they
Today we have only two alterare placing new orders.
The pro¬
natives, ^either retreat and ultiductions cutbacks of recent weeks mate surrender

t'

consulSion^on

for

a

m011^j1 schedule at the New

once a

York

field

ment

oT*Comrnerce^

office,

U.

S.

By JOHN BUTTON

of

Ad
P

New York
r

may

Securities Salesman's Corner

XOF NT llOIISlilOllOIIS

not be

the

Depart-

350 Fifth
Avenue, it was announced,

(and I mean those
William J. Russell, manager of
certainly: reflect a drop in inven¬ words
very literally)
or a pro- the Commerce field
office, said
tory, buying. Revised figures for granr
with-positive and powerful. Th o ma s P. Doughty, associate
business magnitudes in theifourth
leadership-dedicated to regaining - chief,. investment guaranties
staff,
quarter swilfc indicate, that .a ,sub> the missilelead, to surpassing
Rus-*ICA; would welcome appointments
stantial amount, of» rea^iustment^ sian science,, vto'greatly strength- from
members of the New Yofki
is already behind us.,
Provided fining- the
strategic air force/ to investment community for Feb.
consumption holds up,: depleted
stepping; up our submarine de- 24, March 24 and April 21. These
itiventpries will. surely; bring an fense, to
increasing the materials appointments may be arranged by
early; pick-up in industrial ac¬ and: forces needed to
fight local telephoning LOngacre 3-3377, Ext.
tivity. ; "Provided .consumption,
wars, to initiating practical civic 31.
holds up"—that is essential.
So defense
measures, and to extendMr. Doughty will discuss dehere the consumer; and to - a lesser
ing.increased economic and mili- tails of the ICA investment
extent the merchant,, holds - the
lary aid to other free countries.;
guaranty program, under which
key.
Let's keep shoving those
The
\ economic cost of such a guaranties protect U. S. firms
goods over the counter this spring.,
program will,' of course, be very against the risk of being unable
but let's not get panicky about it
great, but it is not unmanage- to convert foreign earnings into
or
give the consumer any idea
able. Even if we were to devote dollars and agaiiist the risk of loss
that it would be advantageous for
$90 billion a year to it (approxi- through expropriation,
him to defer buying.
mately the peak of World War II
These guaranties are offered by
Increased government spending:
; annual ;ekpenditure), : that would
IGA for the protection of new U.S.
may
take time, ' to materialize. be only* 22% of our
gross national investments in 37 friendly nations
There is the problem of the debt
produet. .More realistically a de- which have entered into guaranty
limit to be dealt with, lead times
fense budget between $50 and $60 agreements with this country,
on
complicated-items are-.neces-. billion-would be
appropriate and Complete information on this type
sarily. long, and there is as, yet no,
economically feasible. Needles^ to - of insurance protection will be
clear indication that the; signalsay/ there will be problems and available from Mr. Doughty,
calling system in Washington has pressures: -taxes will have to in-"
As of Dec. 31, 1957, 206 investbeen straightened! out,
If, how¬ crease;. some of the lushness will
men! guaranties with a total value
ever, the /seryfces- have any back-C. have
to;g<* out ,pf American living; of $187,496,484 had been issued,
logs ol. orders that, can; be tossd# controls ofv: basic
materials, > of a new high of $631 million in
into the situation at an
early date, credits of inventories, and perhaps
pending
applications has
been
quicker effects can be expected. of
'prices, and- manpower may well reached,
And, of course, if announced pro¬ be
needed;: the trend toward a

Perspective
In

order

to

accomplish any
worthwhile project you must have
a
method and an objective.
No
ship was ever brought into port

varies in individual industries and

unless the captain knew his des¬
tination and his navigation. Today,

tors will not touch them will prove
to be a profitable investment.

investment men are like the
captain of a rudderless ship that

down the drain.

.

:

b£g. and

shorter

spectacularr .then, business .wilt

make

anticipatory

work-week

waits It wilb be

will
time

a

have; to
of

Wimltall ftrAiin flffarc
lilliiDall UlUlip 1111615

sacri-,

will fices; and retail trade will bear a
stimulate? activity;; Front advance
full quota,!oi these.
Under the
reports, of <the new budget,/how¬
moves that

Oil#

(fOUSUIflCr

11131106 wIKb

I

conmusns^ aw suggesting, it cer-

Paul c. Kimball & Co. heads an
tainly will not- be possible to say
underwriting group which on Feb.
is good for the United
18 of£ered to the public $800,000
VI
States is good lor retailing, or
0f
capital notes of Consumer
In closing, I cannot forbear re„yice versa.
:
Finance Corp. of America, with
marking .that iri the existing state
But retailing, and all business, detachable
common
stock purcf affairs in the world it
does.not
ancj; all;of us ,as individuals, I :am chase warrants for 80,000 shares
seem
very< important
to, debate
sure, ;wilr cheerfully face up to of $5 par value class A common
whether department store sales
this ..tune of. sacrifice and extra;stock. The
company was formerly
and profits will decline in the first
effort,- once we-understand .the people's Finance Corporation,
half of i958, and whether
they facts and the choices, once we are
The notes, due Feb. 1, 1973, are
will pick up again in the second
given the leadership.
,
half. Unless we
priced at 100% and accrued inimmediately give
TO those who think they have terest.
Attached to each $1,000
right answers to some very crucial
national problems, problems that somo understanding of the facts, note is a warrant to purchase 100
it is; profoundly shocking that, the ciaSs A common
arc
as
crucial as .life and death,
shares; each $500
Administration
in its projected. note, carries, a warrant for 50
the matter of;
department store
budget for the next government, shares.
:
'
profits, or indeed of
ever, nothing of this kind seems to
be indicated. "
t

that what

|

.

'

.

is

without

out

a

He gazes

compass.

the storm tossed

on

ask

and

ocean

himself,

s

"Where are we
Such a situation is far

headed?"

from comfortable and at the same

time cannot

bring the ship back

The only thing that can
be done is to find a piece of
.sky

on course.

and take

sightings—the

some

same

old standbys are still there if we
look for them. The stars haven't

I don't intend to become

profits,

in

may

the

business

years

.

fiscal year apparently takes such
small and .faltering steps toward

ahead

become of only historical interest.

.

Proceeds wiI1 be added to work.

portion expected
an adequate defense program. Just
Four years
to be used to reduce outstanding
ago, I said, "I am not
incidentally/ the kind of program
one of those who believe
t ln_n(3
that the
which I believe the situation de.
.
.
international situation is improv¬
-mauds would quickly dispel any
Consumer Finance maintains
ing. On the contrary, I think the
doubts about the character of the headquarters at Denver, Colorado
realization'gradually will grow oh
us
22, offices in seven Rocky
that we are losing 'the cold present business readjustment; the
in- Mountain States,
war, that ultimately we shall have anticipation of such greatly
creased government spending
to end our wishful
Associated in the offering are:
thinking and
would reverse present trends well Peters, Writer & Christensen, Inc.;
face the
necessity of large sac¬
g £unds

with

a

T,.

the

of
the year, Dempsey-Tegeler & Co.; A. G. Edthe
long
lead wards & Sons; Wilson, Johnson &
istence." And I
and
Metropolitan St.
this crisis will come before 1960." timea involved in making the ex- Higgins;
rpenditures,,effective. It is not for Louis Co.
Today that, crisis is at hand.

rifices to defend

before

national

our

middle

ex¬

added, "IT believe \notwithstanding
Sput¬

that

nik has blown
up our fool's para¬
dise. It is difficult to find words
or
tones of sufficient

gravity

present

what

I

analogy is a correct one.
guidance and no direction can
be given to an investment account
know where you are
This applies even though

you

going.
the

it

situation

is

the true situation.

fort- to
to

^

In

foave
now

a

Russian

specific

tion

.*

-

national
the

of

of life..

.

alternative
surrender

.

by
Chairman,

Form Alan Russell Sees.

of

been

knowledge,

achievement

several

Alan Russell Securities, Inc. has

progress. toward

objectives
and

committee of Ameri¬
Exchange
members,
Charles Leichner,
has
announced
that

formed

with

offices

at

hundred

members

of the

Exchange
will
testimonial
dinner
in

American: Stock

37

attend

a

confusing

(as

always does) in tlit^middle of

There

a

are

so

many counterparts
iji the history of the business cycle
(it hasn't been eliminated) and

the securities markets that

reminders

of

what

has

happened in the past
the

air

and

restore

a

few

always

may

clear

some' clear

thinking

to the captain on the
bridge. Each investment securities
salesman

is

that

handling

cus¬

tomers accounts is in

a position of
leadership and responsibility as it
pertains to his client's invest¬

ments.

he

Unless

has

some

con¬

structive suggestions to offer and

exhibits

intelligent,
confident,
leadership, his customers will lose
confidence in him.

This is a must,
want to hold your clients

if you

Past History Indicates

Some last for short

last forever.

periods from four to eight months,
others several years.

(2) Over-optimism is followed
by over-pessimism. The emotional
swings

accentuated

are

the

by

radio commentators and the head¬
line makers.
come

an

It is best not to be¬

extremist in your think¬

ing—keep calm and watch the
psychological index
heat
up,
either on the up side or the down.
pessimism and gloom mounts
the

and

of

more

a

business

news

becomes

:

20th

of-

Century Transfer

von the Exchange trading

floor, is

'nTTt^Afn
-i*r
+u::,a
partner in the firm, Merrill
investment, direction; of :
BUFFALO., N. Y.
Twentieth
Lynch, Pierce, Fenner & Beane.
manpower^ direction of: education. Century Transfer
Agency is en/
«
The
xr

-

m

politicians start to swing at one
another, you can be sure that it
isn't going to be too long before
recovery will start in certain areas.
(3)

The stock market is
of

notion that
of

"millions

our

initiative"

in

a

of

gaging

free

from

enterprise system
would
auto¬
matically provide superiority in
scientific ; achievement
overr the
regimented

efforts

of

the

in

a

offices

securities
in

tne

business

.

Prudential

Building..:- '

*

Mid

est

CHICAGO, 111-—The Executive
Committee

Institutional Financial

Soviet

Exch. Members

Exchange

of the

Midwest

today elected

Stock

the

fol¬

Unless

had to be sharply
we

'Institutional Financial Services

are




John

of sound

never a

one

to our economic sit¬

cons

uation.

Every day that passes
brings the turning point nearer
when public psychology will once
again become confident and the
indexes of business will move up¬
ward.

Meanwhile, the stock

mar¬
com¬

ing recovery in advance. The ex¬
perienced investors will have
made all the good buys that were
available at low levels and those
who did not will once

themselves

again kick

shins

the

in

for

not

buying when they cpuld have had
bargain,

a

(6) Here then are some sound¬
ings that are based upon experi¬
ence.
Let your customers know
that you are aware of them.

(7) If you have any real 100%
4ldogs" in a customer's account, go
to him and tell him that you think
he ought to get out, take his loss,
and use the proceeds to buy some¬
thing else that has some merit and
possibility of recovery, Every
time he thinks about that "pup"
he is

going to think of you. After
rid of it, you will find that
to continue business

he gets

his

desire

relations with you may
what improved.

be some¬

Hurson Officer of

Republic Hal'l Bank
National

Bank

Trust

and

elected

Assistant

an

Vice-Presi¬

Republic National
Bank of Dallas, James W. Aston,
of

dent

the

President

of

Republic,

nounced.
Mr.

has

an¬

^

assumed his duties

Hurson

with Republic on Feb, 17, He will

responsible for directing the
accounting department, Mr. Aston •'«*:

be

said, pointing out that Mr. Hurson
a
background of 20 years'
work with banks, finance com¬

has

panies and in the public accounting
field.

Phila. Inv. Woaen lo

Hear Peel F. Miller
PHILADELPHIA, Pa.—The fifth
in

a

series

Educational

of

meet¬

Investment Women's
in 1956 and others in 1957. Some Club of Philadelphia, will be held
Feb. 24, at 5:30, on the Concourse
industries have been working off
floor of the Philadelphia National
over-capacity by closing uneco¬
Bank.
The speaker at this meet¬
nomical plants and selling off ex¬
cess inventory for months.
Other ing will be Paul F. Miller, Jr. The
industries are pulling in their belt topic will be Growth Stocks with
comments on the Paper Industry.
and cutting down waste and ex¬
Mr. Miller became a partner in
travagance. The free economy ad¬
the investment advisory depart¬
justs itself IN SPITE of the poli¬
ment of Drexel & Co., in 1956 and
ticians' attempts to interfere with
is presently engaged in advisory
the normal adjustments. This con¬

recession,

by

is

and

celerated

now

business

being

ac¬

manage¬

that

ment

problem

much

than

closer to

the

Washington will

ings

of

function

the

with

institutional

ac¬

investment research.

in charge of
He was Lec¬

turer in Finance at

University of

counts.

He

is

Pennsylvania
from

1953 to

also

Wharton School
1957.

understand.

ever

(4)
bled

is

As groups of stocks stum¬
when they made their highs

these same groups are
showing resistance to further

many

of

lowing to Exchange membership: now
W. .Billings,
Jr., Chicago, selling. The most opportune time
prepared Corporation* has been formed with 111.;, Robert A. Don, Granbery, to buy sound equities is when they
to
accept a definite channeling of offices at 85 Broad
Street, New Marache & Co., New York, N, Y.; are depressed and companies have
our
resources, our manpower, and York City, to engage in a securi- John A.
Kemper, John A. Kemper been undergoing a period of de¬
our
educational :' system ^ toward ties business.
*
& Company, Lima, Ohio.
clining business.
The timing

dictatorship has

revised.

and the

com¬

of stocks. Many
highs in 1955, others

groups

their

•

centers

It is

front page story, and the

day, March 6, 1958, at the Park dition has been going on for sev¬
Lane Hotel. Mr. Julian, a broker eral months during the present

securities business.

a

the valuation

stocks.

sided coin, and there are the pros

First

honor of John L. Julian on Thurs-

y.l'rki.&h: -V-\vy;,;

going

Business recessions do not Co., Kalamazoo, Mich., has been

(1)

engage:.,in

ourselves
substantial degree, of purpo¬
direction in our lives, direc¬

not

DALLAS, Texas—John A. Hur¬
son, formerly Comptroller of the

and business recession.

Wall : Street, New York City to

without

become

is

Money will not
valueless, nor will defla¬

common

them through this try¬
ing period of market unsettlement

As

The country

tion ruin

and keep

made

Honor J. L. Julian

American /. .A special
can
Stock
:
headed

voluntarily ' submitting

sive

the: only

extinction

very real sense the Soviets

power;
a

.

way

already won, because it is
demonstrated that we. cannot

match

to

be

eventual

,

and

Advises Stepped-Up Budget
•

ASE Dinner to

looks

decline in the businessStfdex and
a fall in stock prices and
earnings.

posed

but because I believe such an - ef¬

to

convinced

am

reason, however, that I urge
greatly, expanded defense effort,

a

literary

but the

No

unless

(5)

ket will have discounted the

changed.

■

any

companies within industries, but
or later stocks bought at a
time when the majority of inves¬
sooner

many

-

grams. are" sufficiently ;

35

Beil & Hough
CLEARWATER,

Branch

Fla.

—

Beil

&

Hough, Inc. have opened a branch
office at 605 Court Street under
the

management of Pry or

Crosby.

also recently

opened

The

firm

-

an

office with Alan

resentative.

Stark as rep¬

26

The Commercial and Fina'acial Chronicle

(864)

Continued

from

12

page

commissioners

\

-

.

Columbia

of

struction

Eisenhower Expects

Recession to End in March

will be

try.

1958

*
Public

These

Works

,

and

proposals are outlined in the fact
paper.
If
other measures
are
needed, I assure you they will be
proposed
and in time. ;For example, for some time now the
Administration has been engaged,
in systematic and comprehensive
planning for expansion and modernization of public works and
buildings, all of these useful pub¬
lic projects to be taken off the
ehelf

when

they could most

ap¬

propriately be undertaken.-Ye§terday I

to

In all these matters

of Govern-

;

fiscal year

1d57

1958

Certain

„

Programs
the

on

Hoiising — New housing units
are
currently being started at the
rate of nearly 1,000,000
per year,
An

contracts is being sharply accelerated. These contracts will provide
increased
employment
in
many industrial communities.

increase in this rate is justi-

*rcd in teims of
would

have

«ffect

a

housing needs and
widely beneficial

the economy. Diiect

on

Defense-procurement contracts
placed in calendar year 1957, and
planned for calendar year 1958,

em—

ployment would increase in thoueands

are

follows:

as

of

communities, and many
industries, such as lumber, furni¬
ture, home equipment and appli¬
ances, would be indirectly bene¬
fited.
•
'*• V"1 1
'// • •• \ /?/■'■

calendar
—1
years

The

1st

Federal

taken

Government has
number of steps, going

a

back

2(1
Half

1st

Half

$0.7

$12.4

,

$5.7

$17.2

$9.7
1.0

0.0

2.1^

1.2

0.3

2.2

3.9

2.0

1.9

4.2

$17.8

$9.9

....,,

Total'....,

$7.9 $23.6

eralized

schedule

ui
u,
of

»LIleuule

minimum

minimum

,

into effect for FHA-insured home
,uclii>
wm
loans.
On a aii......
a
top
$12,000 Iinils«

house,
I10usc,

*

*+i
example, the
n

minimum

down payment

Tonunm,'

eminent

for

loi

hiehwavs

the

civil

on

increase

ex-

SK.
Federal Govpublic

shamlv

in

works

the

cur-

iecmcea trom

tem

has

been

appreciably

im¬

1 oko

discount

from

3%

rate

3%

to

was

reduced

in

November,
i957? allc( has recently been further reduced
by 10 of the 12
Federal Reserve'banks to 2%%.
Th

•

increased

lower

cost

of

availabilitv

credit

and

these

which

steps have brought about will help
promote a higher level of home
building and construction gener'ally
Thev
will
also
make
it
and

less

expensive, for
governments to

and

forward with the construc-

local

tion °f needed public facilities.

Bache Offers Course

In Sees. Investment
special

eight successive

weeks, beginning Feb. 18,
offered
onereel

Bache

by
by

is

Co.

&

being
in its

ordered

the

highways)

release of an additional
$177,000,€00 of funds for
military

Natlli'al

tor

building

under

Federally supported

$325

$424

841

958

J-012

other

tals>

schools

in

,rareas)

programs.

127

219

201

40

43

41

,

,.

.

Congress
should
promptly on the request of

Total

(rounded)...

act

the

celerateVthedproraTsingHoi
loan
in+mmrf

r7h nVn
GI home

+

v

Ninety-two

home-

loans lale
should

be

mated, to permit veterans
War

II

under

to

enjoy

elimi-

Congress

also

cooperative

the

size

cured

in

■'

'

loan

by FHA,

the

nort

of

should

also

that
as

President's

inri

should




to

expand
estimated $300

The,ia^ authorizing this

can

permit

be

XI

promptly

r>-

re-'
•

program

to

continue

authorized.

in-

in-

this

*

„

re?u

x

•

a

capacity

he

.the Budget has approved

Operations the Current Week Expected to Yield
54.0% of Ingot Capacity ; ;
;

ducers

expect

industry the current week flab-rolled steel pro¬
automotive buying will pick up in
April, based

the belief that

on

zine reported

auto strike will start in

an

V

Monday last.

on

Steel producers

think the auto

June, "Steel"

maga¬

'

■■

companies will

reverse

their

policy of holding steel inventories to a minimum and will stock
up for high operations when the/ anticipated strike ends.
Most
automakers have been holding steel stocks to an
abnormally low

automotive order has been
Some
now

the

the

of

reasons

heavily to the troubles of
the year, since no major

placed for

a

automakers

month.

not buying more steel
due to the fact that sales of 1958 models have been
dis¬

are

are

inventory was 818,000, 21% higher than it was a year
645,000. At the January sales rate of 14,627 a day dealers
have a 56-day inventory. Since they regard 35 days as about
new car

right, they

are in no mood to accept more cars.
Although automakers have reduced .production /(January's
output was 489,357, compared with 641,591.. a year ago), they
will still turn out about 1,700,000 cars between Feb. 1 and
May 31,
when contracts expire.
Subtracting probable sales for the period
(1,632.000) from output would mean'an addition of 68,000 cars

to

inventory.

With nearly 900,000 cars in dealers' showrooms on June
1,
automakers could suspend production for six weeks without in¬

conveniencing buyers.
Sluggish auto
doldrums-stricken

demand

is

not

the

only explanation for the
Pittsburgh construction com¬
panies report their work has fallen off sharply this month. As a
result, they are not in the market for plates or shapes. Mills are
absorbing more freight but holding the line on base prices.
steel

market.

Steelmaking operations declined another half point last week
of capacity.
Production was 1,445,000 tons, compared

53.5%

with 2,501,000 tons for the like week
"Steel's"
another

34

composite

cents.

the

a

year ago.

scrap moved up
$37.67, it is at the highest level since last

At

on

prime

grade of

October.
The Federal

working

as

highway program is not such a boon to metalfirst thought, the publication declared. While road-

(Special to The Financial Chronicle)

BEVERLY

HILLS, Calif.—Al¬
fred Borglum has joined the staff
of Daniel Reeves & Co., 398 South

Beverly Drive' members of the
New York and Pacific Coast stock

He was formerly with

Few economists checked by "Steel" last week
States plan to build, and modernize post

Peabody

thought that the
office buildings
anti-recession remedy.

and

equipment will help markedly as an
$2,000,000,000 program will be spread
years.
/■.;
..■''/
The

.

over

three

to five

;;/'■-//-//.;

A sign of the weather and business times reveals that Cleve¬
land's Cuyahoga River, usually free of ice because of hot indus¬
trial materials disposed in
it, was frozen last week for the first

time since 1913.
The American Iron and Steel Institute announced that tlie
operating rate of steel companies, having 96.1% of the steelmaking capacity for the entire industry, will be an average oi
,:90.8% of capacity for the week beginning Feb. 17, 1958, equiv¬
alent to 1,459,000 tons of ingot and steel for castings (based on
average

actual

weekly production for

1947-1949)

as

compared with a

rate of

*90.0% of capacity, and 1,445,000 tons a week agoOutput for the week beginning Feb. 17, 1958 is equal to about
54.0% of the utilization of the January 1, 1958 annual capacity
of 140,742,570 net tons compared w ith actual production of on.o/o
the week before.

.

For the like week

dilction 1,496,000 tons.
was

a

*93.1% and p
weekly product

month ago the rate was

A year ago, the actual

placed at 2,501,000 tons,

or

*155.7%.

'Index of production is based

on

average

weekly

production

1947-1949.

Electric Output Spurred by Cold Weather
Further the Past Week
The

amount

of

electric

energy

distributed

Increased

by

the

light and power industry for the week ended Saturday, r
1958, was estimated at 12,417,000,000 kwh., according to the
Electric Institute.
For the

e

'

•

loponn-

15, 1958, output increased
previous week and 471,000,0UU
or 3.9% above that of the
comparable 1957 week and increas
1,096,000,000 kwh. above that of the week ended Feb. lb>
000

Now With Kidder

increase structural steel usage about 10% this year
last, the figure falls short of expectations.

United

Joins Daniel Reeves

kwh.

week

above

ended Feb.

that

of

the

•

(Special to The Financial Chronicle)

LOS

lluucIt
ANGELES, Calif.—Robert

Car

s.^Corner" has^lbeco^ie^'affdialed1
Kidder, Peabody & Co., 210
West Seventh Street. He was fm-

*CL ^Columbia—The Bu- merly with

submission to the Congress
by the

cur¬

.

for

with
,

•

characteristic

the steel

In

In

participated in
and handled many important financial and security transactions.

to

beyond the 92 projects currently

recommended

economic

pro-

(LegislaUon"?^needed

increase

of

general counsel

Bache & Co.

remaining projects.

military housing.

Congress

Prior to
for many
law firm

was

large New York commercial

a

with

housing and

large cor¬
pension trust

hank and all of its branches.

o^ financlnrfor thr si Exchanges

an

as

of

of

plans.

he

member

000,000

re-

investment

union

served

sharply

should

the

number

and

a

which

^

sche'dufed

is

of

«cur-

-

program

interest-rate .limitations on
FHA-insured loans for rental

capehait

i

T,7

move

projects

xu

"

benefits

this program.

The

are

ing $105,000,000 of financing.

of World

their

projects

a

joining Bache,

purees"program'11 GSA>S leaS€"
puicnase piogiam.
T

of

funds and welfare

to

$1,290 $1,730 $i,97o

In the calendar year 1958, 58
^ on ProJects will be initiated involv-

-x

i

68

General Service Administration

lnsurancp
insurance FmiYliVnHnne
applications.

Tho

61

126

VI

Housing Administration
supplemental authorization

a

charge

funds

this

Federal
for

ment of Bache & Co. and is still

years
8
63

level of home
construction.

The

Steel

scheduled to stait at 8 p.m.

Allan Rogow, Account Executive

porate

impacted
•• *• \yyt

f,
*
Veterans (mainly hospitals)
Prompt action by the Congress Agriculture and agricultural
on several matters
already before
r®Guri^
(grain stovage
it would help to promote a
higher
■r,

steady-pace

production

over

in

LaT/ov^nTTelSe '(hospil

housing,

■and

$172

„

(ntain

sources

;■*';

the

rently stands 27% behind 1957, while'truck- output is 17% below
last year. Car production has totaled
702,857 this year compared
to 961,924 in corresponding 1957. This year's truck count is
120 9^°.
contrasted to 145,457 in 1957.

Chrysler Building office, 405 Lex-

cluding trust-fund financed

has

'

continued

operations so far this year, but Studebaker-Packard shut
down
its passenger car assembly line all week.v<;V' ■
v
:
A year-to-date comparison shows 1958 car

ington Avenue, New York. Classes
* cphpdnlAd to «tirt it 8 nm

i

President

Motors

builders will

~

The

American

;
of

securities

in

course

e

i

4.

at other divisions.

creases

to

i

+wy«i

onch

during

week. General Motors programmed a 5%
decline and Ford
dropped by 4%. Chrysler, however, although De Soto
production
is virtually at a standstill, raised
programming by 8% via in

ago at

These include natural-resource- with Bache's Chrysler Building
development projects, hospitals, office, will conduct the course,
to
/>CS
^
schools
in
Federally
impacted which is designed to give invesduced further the cash investment areas, general government build- tors a clear understanding of the
ing, etc. Amounts are as follows: opportunities and problems of in¬
required by a home buyer when
vesting.
fiscal year
purchasing a home
under
an
Mr.
FHA-insured mortgage.
Rogow, an attorney, was
(Millions)
1957
1958
1950
formerly Manager of the corpo¬
Commerce and housing (ex¬
Housing Funds Freed
rate and
union pension
departTn

or

appointing. In January, dealers sold 380,300 cars or 22.4% fewer
than they did a year ago when sales stood at 490,000. On Feb.
1,

nI—skroW
addition day,evening (or
Civil Public

.

nT
of

u.

the

$13.4 $10.2

W11i mciease snaipiy m ine cm
rent ±lscal year and wil1 be stl11
higher in the coming fiscal year.

required

reduced from

was

$1,200 to $600

.

1SS
penditures

P??m.ents Vf Put

and

i;

.

Big three, General Motors, Ford Motor Co
Chrysler Corp., had some plants on part-time operation

The reserve position of member
banks 0f the Federal Reserve Sys-

investment, to be held each Tues-

sharply lib¬

;

„

the

of

level of 20 days. That has contributed
the steel mills since the beginning of

2.1

1.5

Other

ago, output was 145,846 cars

Credit Policy—Steps have been
taken by the Federal Reserve
authorities to increase the availability of credit dnd to reduce its
cost to borrowers.

A
a

^

^

year

a

24,113 trucks.

$7.5

Construction

4

page

the corresponding week

em-

/•

2(1

Year Half-

a

August, 1957,

to

payment in many communities,

construction.
In

benefits

pro¬

curement

period of months, to
help promote an increase in home
over

direct

move

-1958

—

Half

Year

Type

possible to accellending activi-

state

1957

Major

,

it

bank's

w^j1

easier

(In billions)

■

make
the

The

Defense Contract Awards — The
placement of defense-procurement

•

wouid
erate

proved.

IV

Current Economic Situation
I

continuity in the
operations,
the
President has requested that the
Congress increase the Export-Im¬
port Bank's lending authority by
$2,000,000,000. Prompt action by
^ie
Congress
on
this
request
assure

lending

195fl

„

on

To

bank's

......

Proposals Bearing

in the second half of the calendar

III

„

from

.

Exports financed by Export-Imp0r^. Bank credits will rise further

1.771

•

is

It

—

be machinery and equipment.

9G9

policy it is well to remember Projects completed......
2
20
*25
that with an economy as complex '.'Projects':being started.......... 5G 100 120
as ours it is
necessary not only -to'
m executl0n at end of
avoid the taking of wrong steps:
but
confidently take the right 1/'As .part of a five-year extension
of this program, the President has
ones. This we propose to do.
requested an additional $200,000,000 for the fiscal year 1959.
Fact
Paper

•

2,382

V

Bank

the Export-Import Bank will finance $625,000,000
of shipments
abroad in the first half of the
calendar year 1958. A substantial
proportion of these shipments will

year.

ment

and

■

year

directed the Postmaster/,.
present to the Con Urban Renewal—Activity under
gress a $2,000,000,000 program for the urban-renewal program will
modernization
during
the next increase substantially in the fiscal
three-five years
of post office years 1958 and 1959. The increase
buildings and equipment through- in program activity is indicated
out the country.
/''V;1-in the following figures:
General

Export-Import

(Millions)
$

Continued

Each

estimated that credits extended by

appreciable impact on the economy in the months ahead in the
direct employment of labor and
materials,
and
by! stimulating
large amounts of additional indirect investment.
•
...
Estimated expenditures during
the fiscal years 1957-59 are as
follows:
1957.

>•

Thursday, February
20,1955

.

projects will

V®

*

^

—

'fiscal

These

sury over a period of five years
o± $iuu,uuu,uuu.

Federal-aid highexpenditures will-have an

way

.

other programs

end

of

prOvements.

.

Highways

of

District

.

entail borrowing from the Treas-

at which crease FHA's insurance authorizacontracts tion., ~
;
placed with private indusH

of this year in the rate
defense procurement

the

of

proposals for con-..
needed public
im-.

.

and

Lloyd Arnold & Co.

Eastman

curities & Cor

Dillon,
.

Union
\
.'V

Se-

Loadings Declined 3.3% the Past Week
Below Like Period

Loadings of

revenue

a

and 20 <

Year Ago

freight for the week ended

_

Feb. 8,

' '

18,137 cars or 3.3% below the preceding week, tne
elation-of American Railroads reports.
k-i9 289
Loadings for the week ended Feb. 8, .1958; totaled *'
■
cars, a decrease of 132,962 cars, or 20% below the corresp

were

,

Number 5713

187

Volume

.

.

The Commercial and Financial Chronicle

.

1957 week and a decrease of 152,039
corresponding week in 1956.

cars,

22.2% below the

or

Automotive Production Declined 4% the Past Week
production

Automotive

"

for

the

week

Feb.

ended

14,

1958,

according to "Ward's Automotive Reports," declined hy 4% below

A year-to-date comparison shows 1958 car
output currently stands 27 % behind 1957 and truck output 17%
preceding week.

the

below a year ago.

week's

Last

output totaled

car

104,419 units and

compared

(revised) in the previous week. The past week's pro¬
trucks amounted to 123,2o3 units, or a
decrease of 5,276 units under that of the previous week's output,,
states "Ward's."
-■
y; '7'i■;',
7-7^7;with 109,028

duction total of cars and

week's

Last

output dipped below that of the previous

car

4,609 cars, while truck output declined by 667 vehicles

week by

during the week. In the corresponding week last year 145,846
cars and 24,113 trucks were assembled.
Last week the agency reported there were 18,814 trucks made

This compared with 19,481 in the previous
week and 24,113 a year ago,
;
Canadian output last week was placed at 7,300 cars and 1,175
trucks.
In the previous week Dominion plants built 5,722 cars
in the United States;

1,052 trucks and for the comparable 1956 week 8,049 cars and
•
r :/ '.' 7
,7-': ,77 V-'y
-77'■■

and

1,827 trucks,

(865)

in

purchases, lifting prices substantially. Orders for sugar and
prices held unchanged from that of a week earlier.
Hog prices
increased noticeably in
Chicago as trading
advanced.
Hog receipts were slightly below those of both a

those

1958, were 5.7% below production, according to the National
Lumber Trade Barometer. In the same period new orders were
above production.
Unfilled orders amounted to 29% of
stocks.
Production was 0.2% above; shipments 2.0% below and
new orders were 5.3% above the previous week and 7.5% above

0.9%

the like week in 1957.

Business Failures Eased
Commercial

call for woolens expanded
and carpet wool

industrial

and

failures

dipped

to

319

in

the

week,

week of 1939 when 293 occurred.

•

„

involving liabilities of $5,000 or more declined to
279 from 297 in the previous week but were higher than the 266
of this size a year ago.
There v/as a dip also among small
casualties with liabilities under $5,000, to 40 from 45 last week
and 51 in the similar week of 1957.
Twenty-five of the failing
Failures

liabilities

had

week ago.

7

in

of

excess

$100,000

against

as

41

hides

on

burlap occurred

a

of

of the

All

26.

the nine

increase from

1957

Fewer concerns succumbed than in the

was

concentrated

with last

even

year

preceding week in six

The total on the Pacific
Coast was down to 75 from 79, in the East North Central to
40 from 44, and in the South Atlantic to-23 from 30. In contrast,
New England casualties climbed to 30 from 23, Middle Atlantic
edged to 105 from 100 and the Mountain States to 3 from 2.
major geographic regions.

Trends from

last

mixed. Four regions reported more
failures than a year ago and five reported lower totals.
The
most noticeable increases from 1957 appeared in the New England
year were

and Mountain States.

Wholesale Food Price Index Rebounded to Previous

High Set
The

wholesale

Jan. 21 Last

on

food

price index, compiled by Dun & Bradstreet, Inc., for the week ended Feb. 10, returned to the high
point of 1958 of $6.52, reached on Jan. 21.
This represents an
increase of 0.8% over last week's $6.47 and 6.4% over the index
one

year ago. •

A

-

Higher in price last week

were

corn,

rye,

oats, wheat, flour,
oil, steers,

sugar, cocoa, butter, eggs, potatoes, prunes, cottonseed
hogs, hams and bellies, while barley, coffee and raisins

registered

declines.
The
of

31

index represents the sum total of the price per pound
foodstuffs and meats in general use and its chief

raw

function

is

over

to

show

the

general

trend

of

food

prices

at

the

Wholesale level.

Wholesale Commodity Price Index Turned Moderately

those of

a

as

Upward the Past Week

week earlier.

There

oats,

was

noticeable

a

which

resulted

in

rise

in

wholesale

buying

of

corn

appreciable rise in prices, the
Chicago Eoard of Trade reported.
Despite increased trading,
prices of wheat and rye were close to those of the prior week.
Prices of soybeans increased somewhat as transactions improved.
Traders were waiting for an announcement last week on what
the Government will do about some of the
price supports this year.
t

A moderate rise in flour buying occurred during the week

which

brought

about

prices. Flour receipts at
29,410 sacks, with 2,580
for
export and 26,830 for domestic use.
In preparation for the
Lenten season retail grocers
noticeably stepped up their orders
New

York

for rice.
•

'

out

railroad

an

increase

terminals

total dollar

Wednesday

Prices remained close to those of the preceding week.

Coffee futures

prices

picked

at the beginning of the week,
end of the period.
Cash coffee

dipped

up slightly at the
slipped as trading lagged behind that of a week earlier.
Limited supplies of African cocoa resulted in a noticeable increase
for FRASER

prices

Digitized


the

American

Stock

change
o

f

Ex¬

Board

Governors

at the

Board's

reorganization

meeting, ac¬
cording to an
announcement

by Edward T.

Cormick,
Exchange
President.

After

hav¬

Joseph F. Reilly

as

telephone order clerk

a

New York Curb

volume

of

retail trade

in

the

new

5 to 1% below that of a year ago, spot esti¬
by Dun & Bradstreet, Inc. show. Regional esti¬
the comparable 1957 levels
by the following
percentages: East South Central States —2 to +2%; Middle
Atlantic and Mountain —3 to +1%; New England —4 to
0%;
South Atlantic —5 to —1%; West North Central —6 to
—2%;
collected

mates

varied from

East North Central and Pacific Coast -—7 to
—3% and West South
Central States—9 to—5%.
.7

Appliance retailers reported noticeable year-to-year declines
in sales of refrigerators, automatic
dishwashers, television sets
and lamps during the week. Interest in upholstered
chairs, dinette
sets and case goods slackened. Total furniture volume was down
moderately from last year. Slight declines from last year pre¬
vailed in purchases of linens, draperies and
slipcovers. The call

covering fell considerably.
Valentine sales promotions

Although

women's fashion accessories and men's
volume

fell

stimulated

interest

in

furnishings, over-all apparel

moderately

below that of the similar 1957 week.
Apparel stores reported some increased interest in women's Spring
coats and sportswear, but sales of coats and dresses
sagged. The
buying of men's overcoats, suits and dress shirts dipped below that
of the similar period last- year.
Food

of

the

First elected to

1951, he

American

the old

member

Exchange in 1936.

the

on

Exchange, he be¬

regular

a

reelected

was

President of

as

Stock

Exchange

Clearing Corporation in 1955 and
again in 1957. His present assign¬
ment

period ended

was

mates

will

include

Chairmanship

of the Committee

on Floor Trans¬
actions. Upon his election as ViceChairman of the Exchange

today,

he

his

announced

Clearing

retirement

Corporation

as

President.

His replacement will be named at
a

later date.
Governors

pointments

who

received

Committee

as

include:

men

James

ap¬

Chair¬

R.

Dyer,
Chairman, who will head
Committee; Louis
Reich, Committee on Securities;
Harold A. Rousselot, Committee
on
Outside Supervision; John J.
Mann, Committee on Finance;

Board

the

Executive

Gerald Sexton, Committee

Ad¬

on

missions; Paul Porzelt, Committee
on
Arbitration; Walter T. O'Hara,
Committee on Public
Relations;
Leo G.

Shaw, Committee

on

Busi¬

Conduct.

ness

sales

slackened somewhat during the
week, despite a
gain in the call for candy, baked goods and some
dairy products. Volume in fresh meat, poultry, canned goods and
frozen foods slipped.
Contrary to the national trend, sales of household goods in
considerable

Seattle

improved, resulting in moderate year-to-year gains. The
buying of women's apparel declined most noticeably in Detroit.
Apparel buyers noticeably stepped up their orders for
women's Summer dresses and sportswear last week.
As a con¬
sequence, volume was slightly higher than that o<f a year ago.
Interest in Spring coats and furs remained close to that of a week
earlier. Wholesalers reported slight gains in sales of men's light¬
weight Aiits and Summer sportswear. A slight rise in the call for
children's Summer clothing occurred during the week.
Wholesale buying of furniture at shows in San Francisco and
Kansas City continued to climb. Principal gains were recorded in
metal outdoor tables, chairs, dinette sets and bedding and mod¬
erate year-to-year gains were reported.
Wholesalers in Chicago
registered increases from last year in sales of gilts, glassware
and dinnerware. While volume in .draperies and linens slackened,
purchases of floor coverings improved. There was a slight decline
from last year in interest in hardware and building materials.
Although transactions in wool climbed substantially during the
week, trading in worsteds and carpet wool was sluggish again.
At the beginning of the week some scattered orders for print
cloths and broadcloths were reported, but over-all volume in

D. M. Reeves Named

Secretary by N.A.M,
BOCA

RATON, Fla.—David M.
Reeves, long-time staff executive
of

the

National

Manufacturers,

Assocation

of

elected Sec¬
association at the
was

retary of the
opening session of the mid-winter
meeting of the board of directors
here.

#

Mr.
tion

Reeves joined the

in

1940

administrative
was

Assistant

and

years

has

and

associa¬

held

many

posts
since.
Secretary for

succeeds

Thomas

Brennan, who recently

was

He

two
M.

made

Assistant General Manager of the
association.

.

cotton gray

goods was unchanged from the preceding week. There
moderate dip in bookings in industrial fabrics and man-

a

made fibers.
Purchase of food at wholesale

lagged during the week. Prin¬

Rice, fresh meat and frozen foo^s

ucts.

week.

l'or the

on

On Feb.

10

registered

slight gains

the Dun & Bradstreet wholesale food

equalling the high point of the

year so

Jan. 21.

Department store sales on a country-wide basis as taken from
Federal Reserve Board's index for the week ended Feb. 8,

For the

period Jan. 1, 1958 to Feb. 8, 1958 a decrease of 1% was

recorded below that of 1957.
Retail trade sales volume in New York City last week
from
ago,

about

ranged

to

5% above the corresponding period a year
according to trade observers.
Cold weather the past week proved a deterrent to sales.
even

M. J. Gordon Now
Bache Research

as
Manager of the research de¬
partment of the nation-wide in¬

vestment firm Of Bache & Co., 36
Wall Street, New York City, has
been

served

from

preceding week, Feb. 1, 1958 an increase of 10% was reported.
For the four weeks ended Feb. 8, 1958, an increase of 3% was

the

3%

in

1957.

was

by

Harold

L.

as

Assistant

Manager

of

For the period Jan. 1, 1958 to Feb. 8, 1958 an increase
registered above that of the corresponding period

January, 1954, to February,

1956, when he was named Acting
Manager.
Mr. Gordon has been a member
of the New York

Society of Secu¬

rity Analysts for about six years.
For
the past ten
years he
has

teaching at Brooklyn Col¬
conducting courses oil cor¬
porate financial policy and secu¬
rity analysis.
\
been

lege

According to the Federal Reserve Board's index, department
weekly period ended Feb. 8,
1958 decreased 2% below that of the like period last year.
In

of

announced

Bache, senior partner. Mr. Gordon

store sales in New York City for the

registered.

Mgr.

Appointment of Monte J. Gordon

the research department at Bache

1958, declined 8% below the like period last year. In the pre¬
ceding week Feb. 1, 1958, a decrease of 2% was reported. For
the four weeks ended Feb. 8, 1958 a decrease of 3% was reported.

in

totaled

of

man

came

Automobile dealers reported a moderate lag in sales of
passenger cars and slight year-to-year declines prevailed.

the

an

term

ing served

ings.

far set

and

1929, has been elected to

Vice-Chair-

as

in 1954 and served

Price Index rose to $6.52,

ago.

to

first

stantial gains that occurred on Lincoln's
Birthday. Overall retail
trade was moderately below that of a year
ago, with the most
noticeable decrease in major appliances, furniture and floor cover¬

Feb.

a year

his

the Board in

price

291.94 of the comparable date

1927

A fractional rise in prices

cipal declines were noted in canned goods, flour and dairy prod¬

index,, compiled by Dun & Bradstreet, Inc., rose to 279.08
10 from 276.21 a week earlier, but remained below the

Joseph F. Reilly, a former page¬
boy on the trading floor of the
old New York Curb Market from

Mc

trading improved.

Price increases on steel scrap, livestock, flour and some
grains helped boost the general commodity price level moderately
over that of the
preceding week. The daily wholesale commodity

,

moderately, while interest in worsteds

Extremely cold weather and rising unemployment in many
discouraged consumer buying the past week, offsetting sub¬

was

on

as

Reilly ViceCh.

Of American Stock Ex.

areas

for floor

trade groups had lower failures during the
week except wholesaling, which edged up to 33 from 26. Casual¬
ties among retailers fell to 161 from 182, manufacturers 53 from
57, construction contractors 47 from 51, and service establishments
trade, while manufacturing held
and other lines declined slightly.

unchanged

Latest Week

All industry and

from

were

continued to lag.

on

.

retail

lard

on

Wholesalers reported another dip in rubber
purchases/ causing
prices to fall fractionally. Improved volume helped boost prices

on

Dun & Bradstreet, Inc. reports.
However,
casualties remained slightly above the 317 in the comparable
week last year and exceeded considerably the 252 in 1956. Busi¬
ness failures were
9% greater than in the corresponding prewar

25

Prices

trading equalled that of the previous week.
Following declines at the beginning of the week, cotton
futures prices picked up at the end of the period.- The
early
decline was attributed to reports of .continued
sluggish demand
for cotton textiles.
The
later increase in v prices followed a
report that the Department of Agriculture had' approved an
export subsidy of 6 cents a pound, effective August 1.
There was a slight decline in prices on cotton
print cloths
as
bookings lagged.
Despite a drop in new orders, synthetic
fabric prices held steady with those of the
preceding week. The

The

Slightly in Past Week

holiday week ended Feb. 13 from the post-war high of 342 in the

in

earlier.

week

a

shipments of 480 reporting mills in the week ended

Lumber

to

of

Trade Volume Registered A Moderate Decline in

Feb. 8,

concerns

Cattle

receipts
The salable receipts of sheep and lambs advanced considerably,
depressing prices somewhat. Purchases of lambs were close to

Ended Feb. 8, 1958

preceding

period. Transactions in steers
prior week and prices climbed
were
somewhat below last year.

sustained at the level of the

moderately.

Fell 5.7% Under Output in Week

J. F.

earlier and the similar 1957

week
were

.

Lumber Shipments

37

Now First Eastern Inv.
RED
name

157

J.— The firm
Investment Co.,
Street, has
been

BANK, N.

of

Eastern

Broad

changed
ment Co.

to First Eastern

Invest¬

38

The Commercial and Financial Chronicle

(866)

..

.

Thursday, February

* INDICATES

Now in

Securities
if Aeronca Manufacturing Corp.
Feb.

10

(letter of notification) 5,000 shares of common
stock (par $1). Price—$6 per share. Proceeds—To go to
selling stockholder. Office—Germantown Road, Middletown, Ohio. Underwriter—Greene & Ladd, Middletown,
Ohio.

^American Business Shares Inc., New York
13 filed
(by amendment)
an
additional 500,000
shares of capital stock (par $1). Price—At market. Pro¬
Feb.

ceeds—For investment.

American Life &

•

Casualty Insurance Co.

Dec. 3 filed 101,667 shares of common stock (par $1) to
be ottered for subscription by common stockholders at
the rate of

one

share for each two shares held; un¬

new

subscribed shares to be offered to public.

Price—$10 per
share. Proceeds—For capital and surplus accounts. Office
—Fargo, N. D. Underwriter—None.

share. Proceeds—For investment in first trust notes,
Company may
develop shopping centers and build or purchase office
buildings. Office — 900 Woodward Bldg., Washington,
D. C.
Underwriter
None.
Sheldon Magazine, 1201
Highland Drive, Silver Spring, Md., is President.

per

second trust notes and construction loans.

—

American

Provident

Investors

are Chairman, Vice-Chairman
spectively.

and President,

re¬

if American Quicksilver Corp.
Feb. 3 (letter of notification) 300,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For min¬
ing expenses.
Office—626 W. 231st St., Wilmington,
Calif.

Underwriter—None.

American Telephone & Telegraph Co.
Dec. 81 filed $718,313,000 of 4%% convertible debentures
due March 12, 1973 (convertible into common
stock, be¬

ginning May 12, 1958, at

•

■

price of $142, representing
$100 debenture and $42 cash) being offered for sub¬
scription by stockholders of record Jan. 24, 1958 at rate
of $100 principal amount of debentures for each nine
shares held; rights to expire on March 12, 1958. Price—100% of principal amount. Proceeds — For advances
to subsidiary and associated companies; for purchase of
stock

a

offered

for subscription by such companies; for
additions and improvements to company's
plant and for general corporate purposes. Under¬

extensions,
own

writer—None.

Statement effective Jan.

17.

added

to

loan

funds

of

Underwriter—White, Weld & Co., New York.

Anderson Electric Corp.
(letter of notification)

Dec. 23

14,700 shares of class B
common stock (par
$1). Price—$12 per share; Proceeds
—To go to selling stockholders/ Office — 700
N. 44th
Street, Birmingham, Ala. Underwriters — Cruttenden,
Podesta & Co., Chicago, 111.; and
Odess, Martin & Herzberg, Inc., Birmingham, Ala.
★ Andes Copper Mining Co.
Feb. 6 (letter of
notification) 6,277 shares of class B
capital stock to be offered to stockholders at rate of
share of class B stock for each six shares of
capital
stock (par $14) held as of Feb.
one

21, 1958; rights to ex¬
Price
At par ($35 per share).
outstanding obligations to Anaconda

pire about March 11.
Proceeds—To

Co.,

the

pay

parent,

—

for

funds

advanced.

Underwriter

—

None.

Anita Cobre U. S.

Sept

A., Inc., Phoenix, Ariz.

30 filed 85,000 shares of

common

stock. Price—At

($3.75 per share). Proceeds—For investment in sub¬
sidiary and working capital. Underwriter—Selected Se¬
curities, Inc., Phoenix, Ariz
par

•

Atlas

Sewing Centers, Inc.

(2/24-28)

Jan.

6 filed
$1,500,000 6%% convertible subordinated
debentures, due 1973. Price—100% and accrued interest.

Proceeds—To increase
bank debt.

inventories, expansion,

and reduce

Underwriter—Van Alstyne, Noel & Co., New

York.

000,600 outlay, and over next five

rilately

ing fund bonds due 1993. Proceeds—To
repay bank loans

and for construction

Underwriter—For bonds,
bidding. Probable bid¬
Inc.; White, Weld & Co. and
First Boston Corp.
(jointly); Harriman Ripley & Co.
and Alex. Brown & Sons
(jointly); Kuhn, Loeb &
Expected to be received tip to 11:30 a.m.
program.

to be determined
by competitive
ders: Halsey, Stuart &
Co.
The

Inc.

—

(EST)

on

March 3.

Bankers Management
Corp.,
Texas (3/11)
Feb.

10

Houston,

filed

400,000 shares of common stock (par 25
Price—$1 per share. Proceeds—To reduce
out¬
standing indebtedness and for
working capital. Under¬

cents).

writer—McDonald,
t

Holman & Co.,
Inc., New York.

BS!I D'sWiner

Co., Chicago, III.

$1,000,000 of secured notes
due Oct. 1, 1962
warrants attached to
purchase whiskey warehouse




$g80,OOO#OO!,; U^erwrifer^Td

determined

(jointly); Glore, Forgan & Co.; Blyth; & Co., Inc.; The
White,' Weld.* & Co;;;Diilon Read &
Co: Inc.;;Bids-^Expected to. bb receiv
up? to 11 a,m,
(ES$)"itm Feto; 25 at 55P^iicSq^
Ohio!
Columbia Gas

•

System, Inc.

(3/6)

ic Butler Brothers, Chicago, III.

be

Rroceeds^-p'or cbnstructiqh

■

,

Price—To

;

supplied by amendment. V Proceeds—For
general corporate purposes. Underwriter—None.
Power

Co.

(2/27)

;

determined

due 1933.

:

competitive; bidding. / Probable bid¬
ders: Halscjf, StuaftW CoV; .!Morgian;StanIe"y4& .Co.; Mer-:
rill Lynch,- Pierce, Fenner & Beane and
White, Weld &
Co. (jointly).1 Bids^Tentatively .expected' up to U a.m.
(EST) on March 6.* • 'K3 V'

be

Electric

by

First Boston- Corp.;

Offices—Port

Feb. 12 filed 50,000 shares of its commori stock (par $15).
to be offered to certain Ben Franklin franchise holders.

and

calls for $65..

years total is approxi

competitive bidding.
Probable bidders—Halsey, Stuart
& Co. Inc.; Blair & Co.; Inc. and' Baxter, Williams
& Co

by

Commerce Oil

Refining Corp.
ti
$25,000,000 ox first mortgage bonds due

,

filed

mortgage bonds due
1988. Proceeds—To repay bank loans and for construc¬
tion program. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.

Dec.

Inc.;

of stock and

Jan.

23

filed

$12,000,000

of

first

The First Boston Corp.; Kidder, Peabody,& Co.;
White, Weld & Co. Bids—Expected to be received up to
9 a.m. (PST) on Feb. 27 at offices of
O'Melveny & Myers,
Room 900, 433 So. Spring St., Los Angeles 13, Calif.
Camoose

offered

Brothers, New

-

York.

Uranium Mines of America,

Inc.
9 filed 3,000,000 shares of common stock
(1 cent
par), all owned by Camoose Mines Ltd.,/which is in
liquidation and has equivalent amount of stock out¬
standing (1 cent par). When registration statement be¬

effective, Camoose Mines will issue

ing dividend,
Canadian
York

on

a

share-for-share

Uranium Mines

City.

shares it

as

a

•

Corp. ;; ;
stock (par 20
cents) being offered for subscription by common stock¬
holders on the basis, of one new share for each four

on

stock

Fund, Inc., St. Louis, Mo.
shares of capital stock, (par one
cent).
Price—At market.:
Proceeds—For investment,
Underwriter
Counselors
Research Sales Corp., St.

repay

or to make first mortgage loans and for
business.
Office—Miami

Beach, Fla

Chenango &

v

—

Telephone Co.
common

by

stock

common

of record about Feb.
21, 1958 on basis of
for each 5.28 shares
held; rights to

_

,

writer—Herrin

Diapuise Manufacturing Corp. of America
- '
(letter of notif ication) 150,000 shares of common
(par 10 cents). Price—$2 per: share.
ProceedsjFor general corporate purposes., Office—276 Fifth Ave.,
New York, N. Y. Underwriter—None.
Jan. 29

con¬

stock

Under¬

(2/21-24)

if Digitronics Corp.
/ :
„
(letter of notification) 140,000 shares of class n
capital stock (par 10 cents).; Price —^ $1.50 per
.

.

Feb. 12

stockholders
new

other corporate purposes. Under¬
Co., Seattle, Wash.
»

and drilling costs and

(par $20) to

one

Daybreak Uranium, Inc., Opportunity, Wash. ?
1,156,774 shares of common stock (par 10
cents), of which 630,000 shares are to be offered for account of company and 526,774 shares for selling stock¬
holders. Price—At market.
Proceeds—For exploration

Jan. 29 filed

Corp., New York. Offering-

Unadilla

•

Explorers, Ltd.
Oct. 28 (letter of notification) 600,000 shares of common
stock (par $1-Canadian).vPrice—50 cents per share-U. S.
funds.
Proceeds — For exploration and drilling costs.
Office
Suite 607, 320 Bay St., Toronto, Ont., Canada.
Underwriter—Stratford Securities Co.; Inc., 135 Broad¬
way, New York.'Offering—Postponed indefinitely.
;

bank loans and

mortgages

Robert H. Green is President.

Cubacor

Feb. 25.

Jan. 29 filed 20,000 shares of
be
offered for subscription

100,000

—

Central Mortgage & Investment
Corp.
Sept. 12 filed $5,000,000 of 20-year mortgage bonds and
500,000 shares of common stock (par five cents) to be
offered in units of $100 of bonds and 10
shares of stock
Price—$100.50 per unit. Proceeds—For purchase of first

writer—Aetna Securities
Date indefinite.

filed

5

Louis.

A. C. Allyn & Co. Inc.
(jointly); Salomon
Hutzler; Blair & Co., Inc.; Blyth & Co., Inc.,
Kidder, Peabody & Co. and Merrill Lynch,
Pierce^ Fenner & Beane
(jointly). Bids—Expected to be received
on

•

Research

Counselors

Feb.

and

(CST)

•

;

mining expenses. Office—1500 Massachusetts Ave¬
N. W., Washington, D. C. Underwriter—E. L. Wolfe
Associates, 1511 K St., N.W., Washington, D. C.
:
>

&

a.m.

Mining & Oil Corp.

(letter of notification) 250,000 shares of-Common
(par 10 cents).. Price—$1 per share. Proceeds-

nue,

Underwriter — To be deter¬
mined by competitive bidding. Probable bidders:
Halsey,
Stuart & Co. Inc.; Eastman
Dillon, Union Securities &
Co. and Equitable Securities Corp.
(jointly); Kuhn, Loeb

•

14; rights to expire on Feb. 28.
share./. Proceeds—For exploration

per

For

March 18.

G, due Feb. 1, 1988. Proceeds—To

struction

of Feb.

as

cents

Continental

Dec. 9

bonds, series

to 11

common

activities and capital expenditures. Office — Havana,
Cuba. Underwriter—H. Koo'k & Co., Inc., New York
;

Office—New

Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fenner & Beane
(jointly); Lehman Brothers; Blyth & Co.,
Inc.; W. C. Langley & Co. and The First Boston Corp.
(jointly); Equitable Securities Corp. Bids—Tentatively

up

held

shares/of

599,464

Underwriter—None. *•"

gram.

Co.

filed

Price—50

if Carolina Power & Light Co. (3/18)
17 filed $20,000,000 first mortgage bonds due 1988.
Proceeds—To repay bank loans and for construction
pro¬

Bros.

30

shares

liquidat¬

Feb.

&

Offering—Indefinite.

Consolidated Cuban Petroleum

Dec.

basis, the 3,000,000
owns.

in/unitsas follows: $1,000 of bonds ahd 48 shares

$100 of debentures and nine shares pf stock.
Price—To be supplied by amendment; Proceeds v-<- To
construct refinery. Underwriter—Lehman

Jan.

comes

16

Sept. 1, 1968, $20,000,00 of subordinated debentures due
Oct. 1, 4968 and 3,000,000 shares of common stock to be

share

Proceeds—For

general

corporate

expire about March 9.
Price—To be supplied by amendment.
Proceeds—To re¬
pay short-term bank loans and for additions and
im¬
provements. Underwriters
W. E. Hutton &

subscribed

purposes. *

Officfe

bertson

a"

Oct. 10 filed 400,000 shares of

Avenue, Albertson, Long Island, N. Y. Una
writer—Cortlandt Investing Corp., 135 Broadway,
York 6, N. Y.- - •
' • * •;"
1 • ' "v'

—

Co., New
York; and Laird, Bissell & Meeds, Wilmington, Del. Un¬
about

shares
March 10.

are

expected

to

be

Disc, Inc., Washington, D. C.

publicly offered

Chess Uranium Corp.

May 14 (letter

of notification) 600,000 shares of
common
(par $1—Canadian)
Price—50 cents per share
(U. S. funds). Proceeds—For exploration
costs, etc. Of¬
fice—5616 Park Ave.,
Montreal, Canada. UnderwriterJean R. Veditz Co.,
Inc., 160 Broadway. New York.

Chairman.
•

••

•

Feb. 20

(today)

cumulative

(3/12)

(par

supplied by amendment.
improvements, to repay bank loans, and for other

cor¬

porate purposes. Underwriters—Morgan
Stanley & Co.,
W. E. Hutton 8c Co., and
Blyth & Co., Inc., all of New
York.
.

★ Cincinnati Gas & Electric Co.
Feb. 20
common

by

'

Dixon Chemical & Research,

rate

of

one

Price—To

be

expansion

and

(3/12)

company plans to file 450,923 shares of
stock (par $8.50) to be offered for
subscription

stockholders of record March 11,
1958, on the
basis of one new share for each 16
shares held; rights

new

share

supplied by

and p

'

.

Inc.

t0

for

each

t

.T

Offering—Temporarily

Ex-Cell-O

Co* p.,

25 filed

88,000
in

four-tenths of
Offer

an

L0.,

Detroit, Mich.
shares of common stock

exchange for common
Co. of Springfield^

will

Ex-Cell-O share for
become

^

o.

postponed.

Chucking Grinder
share.

snar^.

Proce^ed

general corporate purposes,
Underwriter—P. W. Brooks &

Clifton, N.

Nov.

foiir

amendment.

New York.

to be offered

(today)

common

•

'

-'V'

Dec. 24 filed 165,625 shares of common stock dpar
be offered for subscription by common, stocknoia
the

to file 130 000 shares of
$100).' Price—To be
Proceeds—For construction and

stock

Irving Lichtman is President

•='-* >

"

^

company plans

preferred

Business—Purchase
writer—None.

stock

+ Cincinnati Gas & Electric Co.

class A common stock:
Price—$2.50 per share. Proceeds—For investmen .
and development of real prop
and acquisition of stock of business enterprises. U'
rj
$1).

;

(3/3)
$30,000,000 of fir-t refunding mortgage sink¬

$9,500,000

program/ iLafter, for 1958,

Feb. 7 filed $30,000,000 of /^^year/debentures

Baltimore Gas & Electric Co.
Feb. 7 filed

andim^royements'tn

Illuminating Co. (2/25)
$30,000,000 first mortgage bonds due in 1993

for construction

for construction program.

be

Price—To be supplied
by amend

■

loans,, and

Jefferson, N. Y.; and Bridgeport, Conn. Underwriter—
None.
* ■
•
;

amendment.

Proceeds—To

REVISED

Cleveland Electric

Central Illinois Public Service Co. (2/25)
Jan. 29 filed $15,000,000 of first mortgage

City.

bank

ADDITIONS

PREVIOUS ISSUE

ITEMS

Proceeds—Retire bank Joans in amount of

stockholders of record Dec. 31, 1957 at the rate of three
new
shares for each two shares held. / Price—$10 per

(City of), The Netherlands (2/25)
Feb. 5 filed $15,000,000 of
15-year sinking fund dollar
bonds due March 1, 1973.
Price — To be supplied by
the

March 26.

on

iP*o^

Jan. 8 filed

Bridgeport & Port Jefferson Steamboat Co.,v.
(letter of notification) 30,000 shares of common
$5) to be offered for subscription by common

scheduled to be received

Amsterdam

•

19-

for ;pther corporate - purno^
Underwriters—Morgan Stanley & Co., W. E. Hutton
Co.; and Blyth & Co., Inc.; all of New York.

stock (par

Proceeds—To construct-new vessel.

expire

repay

Jan. 30

California

15," 1957, filed 50,000,000 shares of common stock
(par one cent). Price — $2 per share. Proceeds — For
working capital and general corporate purposes. Office
—Dallas, Tex. Underwriter—Peoples Securities Co., J.
D. Grey, of New Orleans, John S. Tanner, of
Dallas,
and C. L. Edmonds, of Houston, three of the 22 direc¬

to

ittont;

Blacksmith Shop Pastries Inc., Rockport, Mass.
Sept. 17 (letter of notification) $100,000 of 6V2% deben¬
tures dated Sept. 16, 1957 and due Sept.;15, 1972 and
40,000 shares of capital stock (par $1), to be offered
in units of one $50 debenture and 20 stufres of capital
stock. Price—$90 per unit., Proceeds—To retire mort¬
gage notes and for working capital. Underwrite*—Mann
& Gould, Salem, Mass.

Corp.

Feb.

tors,

Registration

/

receipts. Price—To be supplied by amendment. Proceeds
—To repay short-term bank loans of $400,000 and for
working capital. Underwriter-^FuIton. Reid .& Co., Inc.,4
Cleveland, Ohio, Offering^Expected-.this. weekv ;

share.

American Mutual Investment Co., Inc.
Dec. 17 filed 490,000 shares of capital stock. Price—$10.20

SINCE

:

2d

(P
stock or

Va., at
each full

effective upon

$3)
t

an*
by

J*cceP"ft1 c0m8Wo£i&

holders cf not less than 209,000 shares (95%) ™
mon stock of Bryant outstanding.
Underwriter

.,

Number 5718

187

Volume

.

.

The Commercial and Financial Chronicle

.

Expanded Shale Products, Inc., Denver, Colo..
60,000 shares of common stock (par $1) and

$180,000 of 6% callable unsubordinated unsecured deben¬

due?;1960-1964 to

$600

N. M.

Co.,. Albuquerque,

-

Fidelity Trend

of notification) -16,900 shares of common
$5)'and 390 common stock, purchase warrants

-

capital.

"Working

ment' add

;jLynchbUrgi

Office—922? Jefferson

Underwriter

£

stock

-

Famous

'■

Freeman

Electric Construction Co., Inc.
(letter of notification) 100,000 shares of common
(par 10 cents). Price—$3 per share. Proceeds—To
reduce accounts payable, etc., and for working capital
and general corporate purposes.
Office — New York.
Underwriter—Harris Securities Corp., New York City.
Nov. 27

Un¬

stock

Crosby Corpf, Boston, Mass.

(par $1).

Price

commoi)

—

General Aniline & Film Corp., New
Jan. 14 filed

.

ceeds—To

be named by amendment.

e

Price—$3

//\AV-'.

;;a:

AAV-;'*'' A- \

'•'A'A.

;■

■■ V •

/

General Credit, Inc., Washington, D. C.

preference stock, fo be offered in units of $500 of deben¬
Price—$500 per unit. Proceeds—

tures and 40 warrants.

calendar

For

expansion and working capital. Underwriter—Nona
Offering to be made through selected dealers
Application is still pending with SEC

'

named.

K8'''ES February20'^TfrursdayK ' a-*
AJA "(Bids 11 a.m.'BfeT) $8,000,000

,:;r7 '

'

Unadilla Telephone Co._i_ .Common

Forest

*

7... v.February 25
Amsterdhiii'
^

7:a77a

^•

;■

button &
Inc. ) $13,000,000

.

,

,f

.(Oi'fering

a

to

stockholders—to

Stanley & Co.:.W.

$500,000
'

'

"■

(Bids

A---.-Common

underwritten

E. Hutton & Co.

PoT)

8. a.m.

March

by

18

March 20

CST^'SIS.OOO.OOO r\

"■

:■

$20,000,000

.

Eiectrib IHumiriaUhgi C6.;.^^_2™Bdnds.
r11 ^t^^^;$3o;ooo,ooo vK'.,
/•.. •;
V"''vTenney Engineering,Inc._^uciL-:.ri._c;.Commoii

'A A
A

Bonds

•

m

(Milton

u

Dl.-Blauner

Kle4% 3? Co^Jwci.)',$3971999, '

0.;

Potomac Electric .Power Co._____U___ 1 __Preferred;
..v;^(Dinct, Read Si Co. Inc. and Johnston, Lemon & Co.)
'• ':r
•
$15,000,000 '
4''?

.-••

A"

A

:

'•/" -(Bids

United

11

EST)

a.m.

April 1
'

^AU^'-V/'^tBids
.•A..

27

February

AAAA-'
;A';'

(Thursday)

>

,

v

.

A .'A^-

(Tuesday)
A_

.Bonds

(Wednesday)
....

(Bids to be invited). $15,000,000

-

April

California Electric Power Co_____^u_-^__—Bonds
(.Bids 9 a.m. PST) $12,000,000
A

A-

February 28 (Friday)
National Aviation Corp
Ad
^
^ - Common
'.'A.' v (Offering.,.to• stockholders—no.* underwriting) * 174.404 shares

-

;

.Bonds
.
/

(Tuesday)

15

Commonwealth Edison

Co.—

Bonds

(Bids to be invited ) $50,000,000 to $60,000,000

April 16
(Bids

(Monday)

March 3

r

:t

4

A,.,,;--

a.m.

(Offering

Corp

Paper

be

.Bonds

invited)

to

57,362

April

Bonds

22

shares

(Tuesday)

Consolidated Edison Co. of N. Y. Inc
(Bids to

Common

—.—

be invited)

..Bonds

Co.,. Inc.J

Biauner

D.

4

March

$450,000

Sierra Pacific Power Co

(Bids

II

ESTi

a.m.

$40,000,000

Pierce.

Lynch,

"

A"~

Union

'

(Bids

(Wednesday)

March 5

Philadelphia

(Bids 10:30 a.m. CST) $9,000,000

''

Electric

'

—____£V^

Co

(Bids

11

EST)

a All.

$35,000,000

to

(Bids

Gas

(Bids

11

Gas

(Bias

EST)

noon

March

10

noon

Power

(Monday)

EST)

Debentures

v

March 11
-

(BicV to

•

(Bids

..Bonds

invited / .-$8,000,000

be


1,;.

'

/L'

*'

•

i"

*

J..

.•

!

;

'

?

,.i.i

$19,000,000

to
V. i ■'

•

:•

■

'

'-"j

J-*

,

■

to

be

(2/20)

$8,000,000 of first mortgage bonds due 1988.
Proceeds—To repay bank loans and for new construc¬
tion. Underwriter — To be determined by competitive

Probable bidders: Halsey, Stuart & Co. Inc.;
Dillon, Union Securities & Co.; Kuhn, Loeb &
Co.; Blyth & Co., Inc.; Lehman Brothers; Merrill Lynch,
Pierce, Fenner & Beane and Salomon Bros. & Hutzler.
Bids—To be received up to 11 a.m. (EST) on Feb. 20 at
office of Southern Services, Inc., Room 1600, 250 Park
bidding.

at the rate of $100 of debentures for
An additional $100,000 of deben¬
tures to be offered to employees and $150,000 to others.
Price—At principal amount.
Proceeds—To be used to
by stockholders

buy

36

shares

held.

airplanes, to repay certain short-term bank
and for other corporate purposes. Underwriter

new

Hofmann Industries,
20

filed

Inc., Sinking Spring, Pa.
of common stock (par 25

227,500 shares

cents) to be offered in exchange for
shares of Van Dorn Iron Works Co.
Bonds

Home Owners Life Insurance

offered to the

(Tuesday)

invited)

'•

^ Hawaiian Airlines Ltd., Honolulu, Hawaii
Feb. 18 filed $1,250,000 of convertible subordinated de¬
bentures due April 1, 1975 to be offered for subscription

Bonds or Debs.

of class B

at $6 per

$25.000,000

outstanding common
Underwriter—None.

Co.

of class A common

stock to be

public at $5 per share and 116,366 shares
stock to be offered to stockholder

common

share at the rate of two new shares for each
Proceeds—For working capital. Office

five shares held

July 1

(Tuesday)

Florida Power Corp

_

,

,

Co.

Power

Jan. 24 filed

$25,000,000

Virginia Electric & Power Co

Bankers Management Corp.^
...Common
A;-A"..:
(McDonald, Holman & Co., Inc.) $400,000
,

-"

10

sold at 25 cents per warrant

general corporate purposes. Underwriter—None.

ital and

Dec.

$25,000,000

(Tuesday)

to be invited)

June

(Tuesday)

Indianapolis Power & Light Co
*'

3

$40,000,000

•

of warrants which are to be

Nov. 1 filed 50,000 shares

Union Securities & Co.)

'

'

Md.
stock, of which
200,000 shares are to be publicly offered and the remain¬
ing 100,000 shares reserved for issuance upon exercise
Guardian Insurance Corp., Baltimore,

Aug. 16 filed 300,000 shares of common

loans,

(Tuesday)

invited)

■

(letter of notification) 300,000 shares of common
stock (par 10 cents). Price—$1 per share.-' Proceeds—
To pay balance on oil and gas properties, and unsecured
notes .and for drilling and working capital. Office—207
Newhouse Bldg., Salt Lake City, Utah.
Underwriter—
Birkenmayer & Co., Denver, Colo.
Oct. 11

—None.

Appalachian Electric Power Co,
(Bids

•'

be

Underwriter—None.

poses.

Bonds

to

June

$20,000,000

(Dillon Read & Co. and Eastman Dillon.

Bonds
$12,000,000

Co

Bonds

Olin Mathieson Chemical Corp

purchase leasehold and for other general corporate pur¬

•

Illinois

(Bids

.

Co

invited)

May 20

Bonds

—

$5,000,000

Merrimack-Essex Electric Co
(Bids

to be

Underwriter—James An¬
N. Y.

^ Graybar Building Associates of New York
Feb. 12 filed $4,180,000 of participations in partnership
in associates (in $10,000 units).t Proceeds—To

each

$40,000,000

(Tuesday)

Improvement

$30,000,000

EST)

a.m.

Virginia & Southwestern RR

Bonds

invited)

May 13
United

..-Debentures

System

(Monday)

Bonds

(Bids

Columbia

Bonds

$30,000,000

Co

be

16, N. Y.

Ave., New York 17, N. Y.

(Monday)

invited)

Electric

1

(Thursday),

6

March

to be

May 5

—Debentures

Iowa Illinois Gas & Electric Co

$3,000,000

Puget Sound Paper & Light Co

Beanei .$25,000,000

&

Fenner

Bonds

invited)

to be

April 28
Preferred

Public Service Electric & Gas Co
(Merrill

(Bids

Bonds

Ohio Edison Co
,

(Wednesday)

April 23

(Tuesday)

«

,

Eastman

$50,000,000

•

tMiiton

March 12. A,

New York

Gulf
Common

stockholders)

and

12

Street,

$15,000,000

$30,000,000

EST)

Service Co.^^.>.-___——

(Bids to be invited) $10,000,000

V

Saxon

11:30

(Bids

y

to

Sierra Pacific Power Co

Bonds

Baltimore Gas & Electric Co.___——
Iowa Public

(Wednesday)

Mississippi Power & Light Co

Curtis

&

organizers, incorporators, management, and/or direc¬
tors. Price—$10 per share. Proceeds—For working cap¬

- _ _ _

.___

Jackson

to

-

,

,

Corp, (jointly); Equitable
be received up to 8 a.m.

Great Divide Oil Corp.

(Bids to be invited ) $10,000,000

"

Webber,

Securities

Bids—To

interests

..Bonds

Duquesne Light Co

on

Corp.

(letter of notification) 150,000 shares of class A
common stock (par 10 cents).
Price—$2 per share. Pro¬
ceeds—For general corporate'-purposes. Office—1 E. 33th

.(Monday)

—

April 9

Bonds

EST).; $30,000,000

noon

A

A

/

'

$30,000,000

$20,000,000

-

Telephone CoLU__Debens.

Gas Corp._J____—w_u^.—

31

V Idaho Power Co
.

•

Bonds

EST)

(Bids to be invited ) $30,000,000

'

'

,

.ami;

Wisconsin Electric Power Co

South Caftiliria; Electric &;^Ghs JCb.V^ j--V--^m*no11
(dfrerlsfastockholder—rto: bb' -underwritten by Kidde'l;
-V;-^-};^-''.v:^,;..^Peabodyi3r, Co., Inc.) 309,694 ;Bharfes\.f.r;./;r.>-M,v.-,/Southern New England

Light Co.—

11:30

March

-

■

(BWs

New Jersey Bell Telephone Co
.Debentures
A"
(Bids to be inVited) $30,000,000
J

-

,

,

(Wednesday)

26

February

A

'

.

SuUberger & .Co.;

Co..'iInc.4U-Iallo\v'ell,

&

.

Florida Power &

Paine,

Webster

thony Securities Corp., 37 Wall St., New York 5,

March 25 (Tuesday)

■

-

&

* Glassheat Corp.
Feb.

(Thursday)

series

hidding. Probable bidders: Halsev, Stuart
White, Weld & Co. and Kidder, Peabody &

(jointly);

Stone

(PST)
Bonds

;

Cleveland

Co. Inc.;

Co.

Securities

(Tuesday)

(3/12)

L, due 1988. Proceeds—To repay bank loans and for con¬
struction program. Underwriter—May be determined by
&

Georgia PoWer Co—.—
.A
:AAAA AAA v
(Bids 11 ami. EST ) $24,000,000

Bonds

:.a:

California

filed $20,000,000 of first mortgage bonds,

11

competitive

Morgan*

and

$20,000,000

to be invited)

(Bids

;

V'v;iWliite/; Weld &-Ch:) $15,000,000'
a.m.-

—

A-A;:

•

.

1

•

General Telephone Co. of
Feb.

and

Carolina* Power & Light "Co.. L

(City-, of ),: Ther: Netherlands - i'-nBohds''

/:>•?:' (Bids'11

be

Co.

A\* Blytlv & Co.. Inc. ) $3,828,346
General Telephone Co.: of California—.Bonds
AAA : " '!

(Tuesday)

Centrarilliriois Public Service Co._-.,__^;

;

Bonds
,

(Morgan Stanley & Cori . Wv E.

.

$29,000,000 AA'A^

EST)

(Bids noon

v.A

125,000 shares of common stock (par $1) to
employees of the company and its
subsidiaries pursuant to the company's restricted stock
option plan.

Co.J___—____.Preferred

A-AA- A'-A A; :
Biytb & CO..
Cincinnati Gas & Electric Co

_ -

_ _

Feb. 13 filed

(Wednesday)

(Bids noon JEST ) $lti,000,000

y

v.

£ la iU
r. Common
77vV,A-,,,1(Charley.jPlohn■:jS^rCo;» s:; oo. ixhi
Pennsylvania Electric Co._____^_-_—_l_-___Bond»

7L-R Heat Treating Co,
'

;

.»

-Common

/jAlfrea'L. Powell'& Co;, and H: Carijollv^j Co.)

ic General Shoe Corp., Nashville, Tenn.

Debentures

•

.

Co.fc.$1,500,000.

$30,000,000

Co.)

Chicago, Rock Island & Pacific RR

February 24-1 Monday).

Alstyne/; Noel
Laboratories,

&

be offered to certain

12

Cincinnati Gas & Electric

"

A'AAiAAVi

Securities

(Paine,. Webber, Jackson & Curtis) $40,000,000

;

;Atlas:Sewing Centers,:Inc^uiv_^^__^-Debentures

v

Union

March

i

v

7-

Dillon,

Debentures

Sylvania Electric Products, Inc
■

•.V ''

.

(Eastman

.

:

(Qrferjng to stockholders—underwritten by W..E. Hutton & Co.
Y v and: Laird, BiSsell & Meeds » 20,000 shares
.
; \

Chenango; &

a

r

.

•

lFriday).^7v'^AdD" 'v77

7 A:Feb*"uary 2L,

^

Mississippi River Fuel Corp..

—,,_____-___Bonds .V'v>-

Co._.

Power

Gulf
A-A-'A

Glore,

Aug. 17, 1956 filed $2,000,000 of 6% subordinated sink¬
ing fund debentures, due Sept. 1, 1971, with detachable
warrants to purchase 160,000 shares of participatini

Sol Goldberg is President.

■

;'VA

common B stock (par $1).
Pro¬
Attorney General of the United States.

the

(jointly); Kuhn, Loeb & Co., Lehman Brother^
Forgan & Co. (jointly). Bids — Had been
scheduled to be received up to 3:45 p.m. (EDT) on May
13 at Room 654, 101 Indiana Ave., N. W., Washington 29,
D. C., but bidding has been postponed.

and

Proceeds—For exploration work and work¬
capita). V Off ice—Portland, Ore.
Underwriter—To

ing

York

A stock (no par)

ton Corp.

share.

per

common

Underwriter—To be determined by competitive bidding.
Probable bidders: Blyth & Co., Inc., and The First Boa-

Fluorspar Corp. of America
Dec. 26 filed 470,000 shares of common stock.

Office—316 Rogers
^
Bldgv^-Mt.^¥erhohi 111. ""Underwriter-^Paul * A. Davis &
CoW Miami; 'Fia.
For oiif an&vgas1 •drilluig- expenses.

426,988 shares of

1,1537,500 shares of

and

Corp*, Washington, D. C.
Nov. 27 filed 500,000 shares .of class A common stock
(par five cents).'. Price — $5 per share. Proceeds—^To
purchase properties.
Underwriter — Whitmore, Bruce
& Co., Washington, D. C.
-A A

/(pa^ Jiyc^pents,)* *;Pricfc^2:; per-share., Proceeds—

stock

investment.

filed

28

Colo.

limited number of investors.

a

First Leaseback

,

,

^

$3 per share. Proceeds — Fox
capital and surplus and for first year's deficit. Office—
3395 S. Bannock St., Englewood, Colo.
Underwriter —
American Underwriters, Incw Englewood, Colo.

^ Farrar Drilling Co.
,
*,
,c..
Feb. 3 (letter of . notification) 150,000 shares of common

c

Mass.
of which 10,and the bal¬

Aug. 26 (letter of notification) 100,000 shares of

St.,

Virginia Foods Corp.
;/ •
Nov. 6 (letter of notification) 5,000 shares of common
; stock.
Price—$6.67 £ per' share.
Proceeds-^To' selling
^stockholder.' Officje-^922 Jdfferson St., Lynchburg, ; Va
5 Underwriter-^Whitney & Cp., Inc., Washington, D. C.

~

investors.

Un¬

(2/24)
200,000 shares of capital stock (par 10
cents). Price—$2.50 per share. Proceeds—For sales pro¬
motion of company's products, working capital, additional inventory and accounts receivable, for research
and development and for other general corporate pur¬
poses. Office—Brooklyn, N. Y. Underwriters—Alfred L.
Powell Co., New York; and H. Carroll & Co., Denver,
Aug.

•V First International Fire Insurance Co.

<

Whitney & Co., Inc.,

Washington,-/D.

;>;

Boston,

share. \ Proceeds—For

per

derwriter—the

warrant:

h

Inc.,

Fund,

to be offered to

Price—$10

offered in units • of 50 shares dfestock and one
Price—$500 per unit;/'Proceeds—For, equip-.

be:

to

is

ance

Jan^SO (letter

stock (par

of

number

Feb. 6 filed 20,000 shares of capital stock,
000 shares were previously, sold privately

V;,

:

limited

a

Price—$10 per share. Proceeds—For investment.
derwriter—The Crosby Corp.,, Boston, Mass.

■

Virginia Foods Corp.

Famous

v

r -*■:;

is to be offered to

ance

-

shares of ^tock. .Price—$1,0QQ per unit- Pro¬
ceeds—For construction of plant, working capital and
other corporate purposes.
Underwriters-MinorMee &
of notes 200

39

Forest Laboratories, Inc.

Fidelity Capital Fund, Inc., Boston, Mass.
capital stock,,! of wrliich 10,sold privately and the bal¬

Feb. 6 filed 20,000 shares of
000 shares were previously

Jan. 29 filed

ture notes

(867)

v
r;

.

.

V

A

—Fort

.....Bonds
'■
"

—

(Bids to be invited) $25,000,000
;•

j:■

'

k: ./• /

) - v.-!

■

1 '

*

1

Lauderdale, Fla. Underwriter—None.
a.

Continued

on page

40

40

The

(863)

Mineral Basin Mining

.from4page--3^r}^^;!- Dec.

Continued
*.

;•„>'

i

't"''

,-.;Vv1

•»

>"*

»•$(£».*;-

30

'

stock;

7

Corp.

Northern Illinois

.

(letter of notification);200,000 shares of common
Price—At* par- ($1 par value).* Proceeds—For

Mines, Ltd.
/'•/.; "--.V' —
7/.-/i./V•.
Nqv. 20 (letter of notification) 300,000 shares of com- • ^ mining expenses. < Offiee —1710-Hoge Bldg., Seattle
■<
tnon stock.
Price—At par ($1 per share):; Proceeds—- >- Wash. Underwriter—None.
:
Minnesota Development Corp., Minneapolis,
To repay loan, tc pfurehase equipment and machinery
Horlac

Chronicle

Commercial and Financial

;

Thursday; February 20, 1958

+

Gas^Ce.^;;/^/;;./:^'';

:>y.

i^b pref&red

100,000

Jan. 31 filed

crnr>1

(par $100). Price—To be supplied :b^ 'amendment Prn
ceeds—For property additions and improvements. Under
7 writers — The First Boston ;iCqi:p;. and
Glore, Forsan a
V

4,

,

7

Co.; both of New York. Offering—Expected today (FeK:
ruary 20).
*7 *'7;_
capital. Office-—155I-A: Eglinton Ave,-7
Nuclear Science &.Engineering.Corp.
>
West, Toronto 10, Ont., Canada. Underwriter—IPAmico -;t Jan. 3a filed 20,000 shares of capital stock (no par);/
Sept. 20 filed 100,000 shares. QL commpn stock (par 2V:
& Co., Inc„ Buffalo,..N>/Y 7
Price—$50 per- share. Proceeds—For general corporate
o,:7;Kr> J*7 77,-..
7 cents).* Price—To be supplied by amendipent.
Proved*
purposes. Underwriter—None. Walter M. Ringer, Sr/, ofit Indianapolis Power & Light Co.(3/Il).'.'iy--v/7 7/
—To prepay indebtedness ' td • Norden-Ketay
Corp t0
Feb. 14 filed $8,000,000 of first mortgage bonds, due 1983.~;- Minneapolis, Minn., is President.
Mftlft.

•nd for working

Equitable Securities Corp.

Motet Co. of Roanoke, Inc.,

notification) 60,000 shares of common
Price—$5 per share. Proceeds—
purchase of land, construction and working capital.
Underwriter—Southeastern Securities Corp., New York.

stock

it Industrial Processes Inc..
4
(letter of notification)

shares

490

of

common;

system.

Office—527

10,000 shares of 7% cumulative convertible preferred,
to be sold publicly at a unit price of $101, representing
Bldg./ Aberdeen,/; one share of preferred and two shares of common. Pro¬
ceeds—To be invested in the stock of Motels Americano,*

Finch

Underwriter—None.

•

•

Iowa-Illinois Gas & Electric Co.

(3/5)

$9,000,000 of convertible debentures due 1968.
Proceeds
Tp repay bank loans and for construction;
program.
Underwriter—To be determined by competi¬
tive bidding. Probable bidders: Halsey, Stuart & Co* Inc.; 7
Kuhn, Loeb & Co.; Glore, Forgan & Co.; The First;Bos-^ "
ton Corp.; Harriman, Ripley & Co. Inc., Eastman Dillon, Y
Union Securities & Co. and White, Weld & Co. (jointly);
Lehman
Brothers; Merrill Lynch, Pierce, Fenner &
Beane; Equitable Securities Corp.; Blyth & Co. Bids—
Expected to be received up to 10:30 a.m. (CST) on
March 5 at the First National Bank of Chicago, 38 South

land.

Iowa

111.

/;'•7

">

Janaf, Inc., Washington, D. C.
July 30 filed $10,000,000 of 5^-8% sinking fund deben¬
tures due Aug. 1, 1972 and 100,000 shares of common
•tock (par 20 cents) to be offered in units of a $1,000
debenture and 10 shares of stock, or a $100 debenture
•nd one share of stock. Price—Par for debenture, plus
#2 per share for each 10 shares of Stock. Proceeds—For
construction of a shopping center and other capital im¬

,

150,000 shares of common
(par five cents). Price—$2 per share. Proceeds—
capital expenditures,
equipment, repayment of
loans and working capital. Business—Welding and cut¬
ting equipment.
Office — 253 Boulevard, Hasbrouck
Heights, N. J. Underwriter—Pierre Rossini Co., Westwood, N. J.
*
Lefcourt Realty Corp., New York
Jan. 29 filed 250,000 shares of common

stock (par 25
Price—To be supplied by amendment. Proceeds
—For development of property in Florida. Underwriter
—Frank M. Cryan Co., Inc., New York.

cents).

common

•tock (no par) to be offered for subscription by common
•stockholders at the rate of one new share for each
€0.4364 shares held.
Price—$28 per share. - Proceeds—

Office—203 West 9th

Treating Co., Newark, Ni J. (2 24-23)
Feb. 5 (letter of notification) 120,000 shares of common
•tock (par 15 cents).
Price—$2.50 per share. Proceeds
—To pay outstanding obligations and for
working capi¬
Underwriter—Charles Plohn & Co., New York.

Proceeds—To be used

lor

enlargement of existing stores, opening of new stores,
end other corporate purposes.
Underwriter—Lee Higginson Corp., New York.
Jan.

17

(letter of notification) $299,000 of 6% sinking
lund debentures due, 1978. Price—Of
debentures, issued
in denominations
$1,000 and $500.

Proceeds—Refunding

of

outstanding Bonds,. Debentures and increase working
capitaL
Office—932 Paterson Plank
Rd., East Ruther¬
ford, N.J. Underwriters—Mohawk Valley Investing Co.
Inc., Utica, N. Y.; Security & Bond Co., Lexington, Ky.
Merrimack-Essex Electric Co.
11

1988.

redeem

a

bonds, series

Proceeds—Together with other funds,

to

like amount of 5%%series B b^nds dim
1987

Underwriter—To be determined by competitive
bidding*.
Probable bidders:
Kidder, Peabodv & Co. and White,
Co-> (jointly); nalsey, Stuart & Co. Inc., and

Zirs^ B°5ton Corp. Bids—To be
March 10 at 441
on




Stuart

(letter of notification)

100,000 shares of com¬

stock (par 10 cents). Price—$3 per share. Proceeds
—For cost of plant and inventory and for general cor¬

porate purposes. Office—Room 202 Houston Title Bldg.,
Houston, Tex. Underwriter—Scott Taylor & Co., Inc..
New York, N. Y.
•

National

Inc., Cleveland, O.
5% 10-year debenture bonds,
9,000 shares of 4% non-cumulative preferred stock (par
$100) and 15,000 shares of common stock (par $10) to be
offered in units of $9,000 of bonds, 90 shares of preferred

Dec.

4

stock

Bowlero,

filed

$900,000

of

shares

of

150

and

common

stock.

Price—$19,500

unit. Proceeds—For erection and operation of two
bowling sports centers. Underwriter—None. William N.
per

Skirball is President.

Statement effective Feb.

Inc.; Morgan, Stanley & Co.; First- Boston1 Corp.; Glore
Forgan & Co.;While, Weld & Co. and Eastman Dillon'
(Jointly);' Bids—Expected to be

officers and other key employees of the company pur¬
the company's Restricted Stock Option Plan.

suant to

Natural Gas Pipeline Co. of America
Nov. 19 filed $40,000,000 of first mortgage pipeline bonds
due 1977.
Price—To be supplied by amendment.
Pro¬
loans.

bank

Underwriters

Dillon^
Read & Co. Inc. and Halsey, Stuart & Co. Inc., both
of New York. Offering—Temporarily postponed.

(letter of notification)

(letter of notificatiohj) 100,000 shares of common
stock (par $1>. Price—$2.50 per share, i Proceeds—For
development of oil and mineral, properties. Office—208
Wright Bldg., Tulsa, Okla.^Uhfljerwrffer—Universal Securitles Co., 201 Enterprise Blidg., Tulsa 3; Okla.
:

Pennsylvania, Electric • Co.; •(2/24Li/7«'u7'--...
first hnprtgage bonds, due March

Jan. 16 filed $29,000,000

1, 1988, Proceeds—To be used,- along with proceeds of
previously-authorized sale Of 500,000 Shares of common
stock to parent company, fop. repayment of short-term

new

offered to stockholders

be

share

for

each

16

at

shares held.

the

late

of

one

Nichols, Inc., Exeter, N. H.
Nov. 14 filed 25,000 shares of common stock (no par).
-

share.

Proceeds—To

repay short term
capital. Business — Sells
hatching eggs and day-old chicks. Underwriter—None.
George E. Coleman, Jr., is President.

loans and for working

Halsey, Stuart & Co.
Harriman Ripley & Co.
Inc. (jointly); Equitable Securities G6rp.; Kidder, Peabody & Co., Merrill Lynch, Pierce, Fenner & Beane,
tive

and

gas

exploration

program.

Interests

Probable

bidding,

Eastman Dillon,
& Co.

bidders:

Union Securities & Co. and White, Weld

Bids—Tentatively scheduled to be

(jointly).

ceived up to noon

(EST)

New

■

York, N. Y.

on

re¬

Feb. 24 at 67 Broad Street,

..

Peoples Security Investment Co../ ,7;
Oct. 28 filed 1,000,000 preorganization subscriptions to
class A voting common stock and 250,000 preorganization
subscriptions to class B non-voting common stock to be
offered in units of four class A shares and one class B
share,

the purchaser agreeing, to- donate, each class B

for Christian

to the Peoples Security Foundation

share

surplus to finance a proposed insurance company to be
named Peoples Security & Endowment Co. of America.
Office — Montgomery, Ala. Underwriter — None. T. J.
is

Patterson

President.

Pittsburgh Brewing Co., Pittsburgh, Pa.
Nov. 15 filed $5,646,750 of 5% sinking fund income sub¬
ordinated debentures due Oct. 31, 1902; 112,935 shares ol
common stock
(par $1); and 451,740 warrants to pur¬
chase 451,740 additional shares of common stock being
offered in units of $50 of debentures, one common share,
warrants to purchase four common shares plus $1 in
cash. These units are to be issued in exchange for each
outstanding

share

are

to

stock (par $25) plus
expire on Jan. 31,
reduce preferred divi¬

preferred

of

dividends.

accrued

offer

The

Purpose—To eliminate

will

or

Underwriter—None.

arrearages.

K

Statement effec¬

tive Dec. 13.
Pleasant Valley Oil & Mining Corp.
Sept. 30 (letter of notification) 2,000,000 shares of com¬
mon stock.
Price—At par (five cents per share). Pro¬
ceeds
For geological studies, reserve for contingent
liability, for machinery and equipment and other re*
serves.
Office
616 Judge Bldg., Salt. Lake City, Utah.
—

—

Co., Inc., New York.

Underwriter—Steven Randall &

Potomac Electric Power Co;

(2/28)

-

•'

Feb. 5 filed 300,000 shares of preferred stock (par $o0).
Price—To
be supplied by amendment.
Proceeds—-ro

bank

loan

for

and

ston, Lemon & Co.,

Under¬

construction.

new

Co. Inc., New

&

John¬

York, and

Washington, D. C.

Premier Pharmaceutical

Corp*, Buffalo, N.

Y.

100,000 shares of 6% preferred stock (par
$10) and 100,000 shares of common stock (par $1) to be

Jan. 29 filed

offered

in

for

units

of

one

share

class

each

of

of stocK.

plant,
other
Securities, inc.,

unit. Proceeds—To build or lease
equipment and .for working capital and

Price—$11
new

per

corporate purposes. Underwriter—Girard

Buffalo, N. Y.
Professional Life & Casualty

Co.,

16 filed

Dec.

$15 per

it Nortex Associates Inc., Dallas, Texas
Feb. 17 filed $2,000,000 of participating interests in 1953
oil

and

Inc.; The First Boston Corp. and

Rights will expire

Price—At par ($10 per share). Proceeds
working capital. Office — 1521 North 16th St.,
Omaha 10, Neb. Underwriter—None.
—For

per

program

part of $41,500,000 coiistruction outlay scheduled
for 1958.
Underwriter—To be determined by competi¬
to pay

writers—Dillon Read
common

March 15, 1958.

Price—$27

1957 construction

issued to finance

notes

repay

25,000 shares of

'

'Oil'- &^ Mineral Operations, Inc.
Nov. 4

—

Nebraska Consolidated Mills Co.
6

(EST) March 4 at Bankers Trust
Yprk."15;: N. Y. 1

received up to 11 a.m.

fCo., 16 Wall Street, New

dend

Feb.

Co.

$40,000,000 of first:mortgage bonds due 1988
etc, and for new con¬
struction. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co

1958.

10.

^National Tea Co., Chicago, III.
Feb. 11 filed 50,000 shares of common stock (par $5),
deliverable only upon exercise of options which have
been and may be issued, without cash consideration, to

reduce

Edison

Proceeds—To repay bank loans,

Education, to be incorporated as a non-profit corpora¬
tion.
Price—$2 per share. Proceeds — For capital and

Biochemicals, Inc.

National

Sept. 10

condi¬

Champaign; IH*
rrl<7
surptu .

120,000 shares of common stock.
share. Proceeds—To increase capital and

Underwriter—N one.

(3/4)

Public Service Electric & Gas Co.

be

opened up to noon (EST)
St.. Boston 16, Mass, 1

public sale in $10,000 units. Proceeds—For
exploration and development of gas and oil properties.

Feb. 13 filed

cutnu

tive

Underwriter—None.

(3/10)

SS? $20,000,000 of first mortgage

C, due

Underwriter-—None.

mon

bank

Co., Inc.

investments.

Proceeds—For

stock to

ir Mangel Stores Corp., New York, N. Y.
Feb. 18 -filed $3,000,000 of convertible subordinated de¬
bentures due 1973. To be offered for
public sale. Price

Matheson

Aviation Corp.,

for

ceeds— To

\

L-R Meat

—To be supplied by amendment.

/

New York (2/28)
shares of capital stock (par $5) to be
subscription by stockholders of record Feb.
27, 1958 at rate of one new share for each four shares
held (with an oversubscription privilege); rights to ex¬
pire on March 13. Price—To be supplied by amendment.

For

of

.7

National

offered

Koeller Air Products, Inc.

Lorain Telephone Co., Lorain, Ohio
Dec. 13 (letter of notification) 1,785 shares

—

Feb. 7 filed 174,404

Kov. 25 (letter of notification)

tal.

.77,

$1) to be offered in units of $250 of debentures and 400
class A shares. -Price — $910 per unit.
Proceeds —To

•

•tock

•

'7

Ore.
Deo. 26 filed $250,000 of 10% unsecured debentures and
400,000 shares of class A non-voting common stock (par

New York.

provements; for retirement of present preferred shares;
•nd for working capital, etc. Underwriter—None.

6t., Lorain, Ohio. Underwriter—None;

Eugene, Ore., as President.

Multnomah Kennel Club, Fairview,

Municipal Investment Trust Fund, Inc.: (N. Y.)
May 9 filed 5,000 units of undivided interests in Munic¬
ipal Investment Trust Fund, Series A. Price—At market.
Proceeds—For. investment.
Sponsor—Ira Haupt & Co.,

Underwriters—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co.; Eastman
Dillon, Union Securities & Co. and Salomon Bros. &
Hutzler (jointly); Blair & Co. Inc.; White, Weld & Co.;The
First Boston Corp., Kuhn, Loeb & Co. and A. C. Allyn
& Co., Inc. (jointly); Kidder, Peabodv & Co. and Blyth
& Co. (jointly).
Bids—Exoected to be received up to
11:30 a.m. (EST) on March 3.

improvements.

of

bank loans and short-term unsecured notes. Un¬
Stone, Moore & Co., Inc.; Denver, Colo.
Offering—Expected early in February.

gram.

and

1,000,000 shares of class A common stock

filed

31

(par $1). Price—At market. Proceeds—For investment/
Business—Investment company, with Spencer R. Collins

derwriter

Jan. 31 filed $10,000,000 of first mortgage bonds due 1988.
Proceeds—To repay bank loans and for construction pro¬

For additions

Jan

repay

(3/3)7

Public Service Co.

.

Vancouver, B. C.

Multnomah Canadian Fund, Ltd.,

—

„

organization. Office—Silver Springs, Mary¬
Underwriter—None.
,/'.,..7 .77,777/7.

Italian

an

Feb. 5 filed

Dearborn St., Chicago,

shares of class A common stock and

Jan. 14 filed 20,000

Ib^cauSe of/ptefrket

;■//7/—:v

Union Securities & Co.

Price—At par ($100 per share).
a wheat washer solids

fProceeds—To install and assemble

Wash.

Motel Corp. of Italy

.

In cancellation of indebtedness and 260 shares are to be

recovery

(par 40 cents).

For

Feb.

tions.;

Feb. 6 filed

Roanoke, Va.

Nov. 18 (letter of

Bids—Expected March. 11.

ing—Temporarily postponed
Ohio

Dillon, Union Securities & Co., New York.
^

©tock, of which 230 shares are to be offered to creditors
offered to stockholders.

>

.

Feb.

by, competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.: Eastman Dillon, Union. Securities & Co.;
White, Weld & Co. and Shields & Co. (jointly); Blyth

Co.; Kuhiv Loeb & Co.; Lehman Brothers; and Goldman.
Sachs & Co. and First Boston Corp^ (jointly);

•

it Mississippi River Fuel Corp. ■ (3/14) •
17 filed $30,000,000 of 20-year sinking fund deben¬
tures/due 1078; Price—To be supplied by amendment.
Proceeds—To repay bank loans. Underwriter—Eastman

R*roeecds—To repay short-term bank borowings, and for'
construction program.
Underwriter—To be determined

&

-v

supp!.n(j

by

offered

•

for

North

American

Contracting Corp.
Dec. 27 (letter of notification) 169,500 shares of common
stock (par 10 cents). Price—$1.75 per share. Proceeds—
For

working

necticut
1

ti<">.

-i

capital

and

expansion.

Office—1526 Con¬

Ave., N. W. Washington 6, D. C. Underwriters—
f

-

^

J

~

„

•

_

Tnc., New York/N. Y. Offering—Temporarilv with¬

drawn.

(by amendment) 250,000 shares of
preferred stock (par $100). Price—To be

amendment.

for

Proceeds—To

construction.

new

Pierce,

Fenner

&

sell these securities
of

unsettled

now

been

Public

Nov.

29

cents).

were

market

repay

Underwriter

Beane,

New

bank l°ans
Merrill L>

at

•

Negotiat1011^

discontinued last June

conditions

,

—

York.
that

^

bee

time, but

resumed.

Savings Life Insurance Co.

filed

113,000

shares

of common

Price—To be supplied by

r

stock

amendment. *r0

go
etjs

Number 5718

187

Volume

.

.The Commercial and Financial Chronicle

(869)

Savings Insurance Co., the selling stock¬
Office—Charleston, S. C. Underwriter—None.

Public

—To

holder.

+ R-B Corp./

Arlington, Va.

Feb. 7 (letter of notification) 4,000 shares of 6%
cumulative non-convertible preferred stock (par

Co.

and

for

additions

im¬

and

working capital and payment, of current liabilities. Ad¬
dress—Wrightsboro section, 3 miles north of Wilmington,

provements to

by

'V

V

-

Telephone & Telegraph

property. Underwriter—To be determined
competitive
bidding.
Probable
bidders:
Halsey,

;

N. C.

Stuart & Co.

Inc.; Morgan Stanley & Co.; White, Weld &
Kidder, Peabody & Co. (jointly); Lehman
Brothers and Salomon Bros. & Hutzler
(jointly); The
First Boston
Corp.; Merrill Lynch, Pierce, Fenner &

non-

Co.

$10)

of common stock (par $10) to be offered
shares of preferred and one share of com¬
mon.
Price—$10 per share or $210 per unit. Office—
1510 N. Quincy St., Arlington, Va. Underwriter—None.

and 200 shares
in units of 20

Beane.

Bids—Scheduled

(EST)

Feb. 26

on

at

be

to

Room

York, N.'Y.

Reichhold ChemciaJs, Inc.
7 //V %?/yV;/; 7;;,
Oct. 10 filed -200,000' shares ot common stock (par $1).
Price—To be supplied; by ^amendment -Proceeds—For

received

to

up

11

.

a.m.

.

2315, 195 -Broadway, New

///A •//////%'

1

I*,

40,000 shares of

'Price—$9.50

expansion program and .working capital. Underwriter—
Blyth & Co., Inc., New Afork. Offering—Postponed ternporarily. r'~; Iy* J:
v5:

filed

per share.
bank loans and for

Stock

common

(letter of .hot jtfcafioh-fc "30,000 shares of

bank loans, to repay all or
part of an outstanding, 5% term loan and/or provide additional work¬

.

Eastman

Union Electric Co., St. Louis, Wo. (3/5)
$35,000,000 of first mortgage bonds due 198a.
Pr©eeed«-AFor improvements and additions to
property.

V ■
■

R#sdiii^t^y^^i^v.Cd^xt€L

Feb. 11.filed

Xluderwriter—To be determined by competitive
bidding.

Southwest .Grease A OifCo,,lnc. /*,
(letter of notification) 35,290 shares of common
stock (par ;^7.50) to be-offered
for subscription by com¬
ing capital, etc; Bu^nes»TAPuieiiase and sale"of-commpmon stockholders about
Feb; 3 on a l*for-4 basis. Price
ditiesy <
.^yrCanada^ •'fJiiderttTite^-4 i
—t$7/75 per share. rPreceeds-fFor the
Irving Weis & Co^Nbw Yorfor- ■:. .
acquisition of Bat*

Oct. 29

Manufacturing Co.
Sept. 24 filed $600,000 of 6% sinking fund debenture!)
and 30,000 shares of class A common stock
(par $1) to
be offered in units of $500 of debentures and 25
shares o#
stock. Price—To be supplied by amendment. Proceeds—

ing capital. " Office—Roanoke, III/ Underwriter—Whit*
& Co., St. Louis, Mo.,'on a best-efforts basis.
> / ;
/

(par $1).

Proceeds—To repay short-term

construction program. Underwriter-r—
Dillon, Union Securities & Co.,. New York. Of¬
fering—Expected this week.

;

Wilmington,

To reduce

Southwest Gas Corp
22

Selected investments,

—

Ulrich

.

Jan.

Underwriter

1N, C,

;and

'

41

common :* vV

Jan. 17

stock; Price—At par ( $5 per shafre).f^oeeeds—For work-

.

tibs &

Co.

Eastman. Dillon, Union Secufi-A
Shields & Co. -( jointhOr the Fii'st Bps-

and

ton CorpABids^Expected' to be received
tenfeld Grease & -Oil
up to 11 aim
Corp,: Office vt- 220 W., Waterman
Z«Uenof»tet Pa.
:A
St./ Wichita; Kan. -Underwriters '-r- / SmaUrMilbum Co."; / (EST), on March 5. 'c,;///
//4:
Dec. 6 filed 20,000-shares.of common stock to be offered *
UwifiOd Fukds, Inc., Indianapolis, Ind.
Lathrop,-Herrick & Clinger,'Inc,; and Brooks & Ccx of
^ *
for subscription by stockholders of record Dec. 1, 1957
Wichita, Kan. and Barret, Fitch, North & Co., Kansas ; Feb. 14 filed $12,000,1)00 series B certificates (to be is¬
in the ratio of 3'V? new shares for each 10 shares held;
sued in denominations of $1,500
Pity, Mo.
' :
each).- i;
• < >
>7. :'N/- v<£7 ■-

/;

,

,

unsubscribed shares-to be offered to public.

Price—$10,

—None.

:

.

Rocky Mountain Quarter Racing Association
Oct. 31 (letter of notification )J300,000 shares of common
stock. Price—At par ($1 per-share). Proceeds—To re¬
pay

outstnding indebtedness.

Underwriter—R. B. Ford

Office

more

Worth, Tex.

con¬

'

Sentinel Security Life Insurance Co.
filed 5,000 shares of common stock (par $10).
Price—To be supplied by amendment.
Proceeds—For

Under¬

York
like amount of ordinary shares)
being offered for/subscription by holders of ordinary
shares, including stock represented by New York shares
of record Jan.
17, 1958, on a l-for-10 share basis; rights
to expire March 3.
This represents 10% of the total
a

offering by the company, which 10% is being offered for
subscription by American residents. Price—5 pounds,
ten shillings; $15.40 at current official
exchange rate.
Underwriter

—

None in the United
States./ Statement effective Jan. 20./

Sheraton Properties, Inc., Boston, Mass.
30 filed $990,000 of first mortgage
sinking

bonds due Dec.

1,

repay indebtedness.

Corp.,

1973.

subsidiary.

a

Price—At

Underwriter

fund

Proceeds—To

par.

Sheraton

&

postponed.

Securities

,

Beane, New York.

Offering

—

Indefinitely

,

South Carolina Electric & Gas Co. (2/26)
Feb. 4 filed
369,694 additional shares of common

for each 10
shares held

(with an oversubscription priv¬
expire on March 12.
Price—To be

rights to
supplied by amendment. Proceeds—To
and for new
construction.

repay

Underwriter

body & Co., New York.

—

bank loans

Kidder, Pea-

Tax

warrants).„ Price—At pqr (in denominations of $1;000
Proceeds—For payment of demand notes pay¬
Office—2301 Huntsville Road, *

Birmingham, Ala, Underwriter*—None.

?0"th«r" N^w England Telephone Co. (2/26)
Liaa filed^3o»°00JX10 of 33-year debentures due March
s

rw?

%Proceeds—TV>

by amendment.

1,500,000 shares of common stock (par ono
Price—$1 per share. Proceeds—For plant rental,,
etc.; to retire corporate notes; for core drilling; for
working capital; and for other exploration and development work.
Office
Houston, Texas.
Underwriter —
—

Exempt Bond Fund, Inc., Washington, D. C.

Equitable Securities Corp., Nashville, Tenia* Offeringup pending passing of necessary legislation by
Congress.
<
: /
Held

•

Taylor Instrument Companies

the

basis

of

Price—To

one

be

share

new

for each four

shares

Proceeds

held
—

Tc

retire short term bank loans and for
working

capital and
Rochester, N. Y
Underwriter—The First Boston Corp., New York. State¬
purposes.

Office

ment withdrawn Feb. 5.

'

—

\

.

•

Price—To

None.

Uranium Corp. of

America, Portland, Ore.

April 30 filed 1,250,000 shares of

common stock (par ltf
cents). Price—To be supplied by amendment (expected
to be $1 per share). Proceeds—For exploration purpose®.

Underwriter—To be named

by amendment. Graham Al¬

.Washington National Development Corp.
(letter of notification) 50,000 shares of common
stock (par $1) ©f which 34,280 shares are to be offered
publicly at $1.20 per share and 15,720 shares are to beOct. 2

'offered to certain individuals under options. Proceeds—
For genera) corporate purposes. Office — 3612 Quesad*

Tenney Engineering, Inc. (2/25)
Jan. 29 (letter df notification) 99,333 shares of common
stock (par 10 cents).
Price—$3 per share. Proceeds—
To repay outstanding bank loans and for
general cor¬
•

porate purposes.

Office—44 Harvard St., Montclair, N.J.
Underwriters—Milton D. Blauner & Co., Inc., New
York,
N. Y.; Hallowell, Sulzberger & Co.,
Philadelphia, Pa.;

Co., Inc., New York, N. Y.

Underwriter—Wagner A

Co.. New York City.

^ Washington Planning Corp.
(letter of notification) 39,200 shares of preferred
stock (par $5) and 7,840 shares of class A stock (par 10
cents) to be offered in units of five shares of preferred
Feb. 13

stock and

share of class A stock. Price—$26 per unit*

one

Proceeds—For
To transact

•

and Michael G. Kletz &

Universal-Cyclops Steel Corp.
10 filed 600,153 shares of common stock (par $1).
be supplied by amendment.
Proceeds—To
selling stockholders who are to receive said shares in
exchange for their holdings of Empire Steel Corp. and
Reeves Steel & Mfg. Co. common stock. Underwriter—
Feb.

St., N. W., Washington, D. C.

supplied by amendment.

general corporate

A//y

bert Griswold of Portland, Ore., is President.

Jund 20 filed 40,000 shares of common stock. Price—$25
share. Proceeds — For investment. Underwriter-

general corporate purposes.
Business—
general securities business, specializing in

a

Mutual Funds.

Office—52 Broadway, New York 4,

Underwriter—None.

N. Y„

-:

-k West Coast Airlines, Inc., Seattle, Wash.
12 filed $600,000 of 6%
subordinated debentures,

Feb.

due 1970, and 150,000 shares of common stock (par $1) to
be offered for subscription by common stockholders of
record

March 1,

1958, in units of $100 principal amount
common shares, at rate of one unit

of debentures and 25

if Texas-Arizona

for

Price—$125 per unit. Proceeds—To finance the acquisi¬
tion of six new Fairchild F-27 "Friendship" aircraft on

Minerals Co., Inc.
(letter of notification) 71,850 shares of common
stock (par $1). Price—$2 per share. Proceeds—For min¬
ing expenses. Office—Farm & Home Savings & Loan

order for

Association

writer—None.

3

repay




advances from American/

Building, 600 Caroline St., Houston 2,\ Tex.

Underwriter-—None.
Tourist

Industry Development Corp. Ltd.
Jan. 14 filed $2,250,000 7% perpetual subordinated de¬
bentures (4% fixed interest and 3% of earned), to be
at

par

thereof.
on

in

denominations

of

$1,000

and

multiples

Proceeds—To acquire mortgages or other liens

real estate, also for loans to or invested in

sorts

inland

or

transport.

hotels, re¬
Office—Jerusalem, Israel. Un¬

derwriter—N one.
•

Town

&

Price—$4

share.

W.

Proceeds

California

derwriter—None.

—

(no par)

For working capital.

Fort Wayne, Ind.
Statement effective Feb. 5.

Transi-America

Road.

Uranium

Un¬
^

Price—25

cents

per

share.

stock (par one
Proceeds—For land

acquisition, exploratory work, working capital, reserves,
and other corporate purposes. Underwriter—None.
fred E. Owens of Waterloo, Ta., is President.

Trask

Al¬
-

Manufacturing Co.
Dec. 5 (letter of notification) 19,000 shares of common
stock (par $5). Price —$4.50 per share. Proceeds — For
-

common

shares

held

on

the

record

date.

delivery during 1958, and related costs. Under¬

Western Copperada Mining Corp. (Canada)
Aug. 30 (letter of notification) 300,000 shares of commou
stock. Price—At par ($1 per share). Proceeds—For de¬

velopment and exploratory work, drilling costs and sur¬
vey, and for working capital.
Office — 1205 Phillip*
Square, Montreal, Canada. Underwriter—Jean R. Veditz
Co., Inc., New York.
'
Worldmark Press, Inc.

For

(letter of notification) 150,000 shares of common

(par 10 cents). Price—$2 per share. Proceeds—
working capital and general corporate purposes.

Office—207

East 43rd

Street, New York, N. Y.
Co., Inc., New York.

Under¬

writer—J. A. Winston &

Young (Donald W.) & Son, Inc.
14 (letter of notification) $75,000 of 10-year 6% '
debentures due Oct. 1, 1967, with common stock war¬
rants to purchase 7,500 shares of 10-cent par common
stock at $1 per share. Price—$100 per unit of a $100
debenture and one warrant.. Proceeds—To repay shorv
term debt and for working capital. Office—Stockholm
N. Y. Underwriter—Sherry, Maloney & Co., Inc., New
Nov.

Mining Corp.

Nov. 6 filed 3,000,000 shares of common

mill).

31

stock

Country Securities Corp.

per

each.

Dec. 20

Dec. 20 filed 250,000 shares of common stock

*

working capital.

supplied

per

Office—442

Southern Electric Steel Co.
Uec. 23 (letter of
notification) $300,000 Of 6% second
mortgage serial bonds (with common stock purchase

able and

be

Halsey, Stuart & Co. Inc., both of New York.

sold

stock

(par $4.50); to be offered for
subscription by common
stockholders of record Feb. 26 011 basis of one new share

ilege);

Price—To

Two Rector St.,

Feb.

—

Simplicity Pattern Co. Inc.
Oct. 10 filed
155,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—To two
selling stockholders. Underwriter—Merrill Lynch, Pierce,
Fenner

1983.

Oct. 1 filed 99,195 shares of common stock (par
$10) tc
be offered for subscription by common stockholders on

"Shell" Transport A Trading Co., Ltd.
Dec. 20 filed a> maximum of 817,720 of New

Dec.

v

•

Proceeds—To repay bank loans and for
working capital.
Underwriters — Paine, Webber, Jackson & Curtis and

writer—None.

For exploration programs.

due

26 at Room 2033,

.

United States Sulphur Corp.

(by amendment) an additional 100,000
capital stock (par $1), Price—At market. Pro¬

Louis, Mo.

tures

Nov. 27

—

Feb.

on

cent).

if SySvania Electric Products, Inc. (3/11)
Feb. 18 filed $20,000,000 of sinking fund debentures due
1980 and. $20,000,000 of convertible subordinated deben¬

—

Proceeds

(EST)

Oct. 8 filed

inations of $1,000 each). Proceeds—For
working capital
and to reduce bank loans, Undenvriter—White &
Co.,

com¬

-—

Shares (representing

noon

New York '6, N. Y.

None.

St.

Office—Salt Lake City, Utah.

Ripley & Co. Inc. and Goldman, Sachs & Co. (jointly);
Kuhn, Loeb & Co.; White, Weld & Co. and Equitable
Securities Corp. (jointly).
Bids—To be received up to

Offering—Delayed.

Stuart-Hall Co., Inc., Kansas
City, Mo.
Nov. 27 filed $650,000 of 20-year 6% convertible de¬
bentures due Dec. 15, 1977.
Price—At par (in denom¬

Scientific

working capital.

construction program.
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders:
Halsey,
Stuart & Co. Inc.; The First Boston
Corp., Harriman

Underwriter—Reilly, Hoffman & Sweeney,

ceeds—For investment.

La.1 (2; 26)

for

filed

shares of

Underwriter—None.

Industries, Inc.
Dec. 27 (letter of notification) $120,000 6% convertible
sinking fund debentures, due Feb. 1, 1968, convertible,
except as provided in case of redemption, into common
stock ( 5 cent par value) at a price of $1 per share. Price
—At par.
Proceeds
For expansion of plant in the
manufacture of laboratory and scientific instruments
and to build up company's new electronics division. Of¬
fice
15 Park St., Springfield, Mass. Underwriter —
Willis E. Burnside & Co., Inc., New York City,

14

United Gas Corp.; Shreveport,

of first mortgage bonds of United Gas Pipe Line
Co.,
wholly-owned subsidiary; to purchase additional secu¬
rities of Union Producing Co., another
subsidiary; and

i Stein Roe & Farnham Fund Inc.
Feb.

(par $30) and 418,475 shares of
common
stock/ (par $1) to be issued in exchange for
stock of White Laboratories, Inc. (which is to be merged
with Schering Corp, effective Sept. 19, 1957) on the
basis of one share of preferred stock and IV2 shares of
class B

*

Feb. 3 filed $30,000,000 of first mortgage and collateral
trust bonds due 1978. Proceeds—To
purchase $27,000,000

Philadelphia, Pa.

Inc., New York, N. Y.

vertible preferred stock

or

-V\;

and

York.

stock for each White class A

>.

Proceeds—For construction, payment of
promissory note
working capital. Office—3309 Winthrop St., Fort

filed

share held.

•

•

Sovereign Resources, Inc.

Paper Corp., New York (3/3)
112,500 shares of common stock (par 25
cents). Price — $4 per share. Proceeds — Working cap¬
ital. Underwriter—Milton D. Blauner & Co., Inc.. New

mon

*•» -•> t

Nov. 19 (leftter of
notification) 1,500 shares of 7% cumu¬
lative preferred stock. Price—At
par ($100 per share).

Saxon

common

4

1, Md.; John W. Yeaman, Martinsville, Va.; and

Bioren & Co.,

Co., Witidover Road, Memphis.

Sphering Corp., Bloomfield, N. J.
Sept. 19 filed 278,983 shares of 5% cumulative

?-

Virginia Gas >€6,
notification) $125,000 of 6% converti¬
ble debentures due
Jan., 1, 1983. Price—99% of prin¬
cipal amount. Proceeds—To retire bank loans and for
working capital. Office—1014 Fidelity Bldg., Baltimore
2, Md. Underwriters—C. T. Williams & Co., Inc., Balti¬

A;

Jan. 31

"

yH Southwestern
Jan. 31 (letter of

Littleton, Colo.

—

^

-

•

-

A•;*;-

Tenn.

.'fry

•*.

share. Proeeeds^-To pay $100,000 outstanding. obli•gations and for improvement and rehabilitation of plant
and facilities. Business—Fiberglass panels. Underwriter
per

York.

:

r. ;

v

f

/

•

Continued

•'

on page

i?

Continued

from

page

Consolidated Edison Co. of N. Y.f Inc.

41

Jap.
and

reported company plans to sell approxi¬

mately $3,500,000 convertible debentures. Underwriters
—To be determined by competitive bidding.
Probable

Noel & Co. and Crowell, Weedon
(jointly). Offering—Expected in March.

bidders: Van Alstyne,

Appalachian Electric Power Co. (6/3)
Dec. 2, it was reported that this company, a subsidiary
of American Gas & Electric Co., plans to issue and sell

$25,000,000 of first mortgage bonds. Proceeds—To repay
Underwrite!
—To be determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; The First Boston
Corp.; Kuhn, Loeb & Co. and Eastman Dillon, Union
Securities & Co. (jointly); Harriman Ripley & Co. Inc.
Bids—Tentatively expected to be received on June 3. /:

bank loans and for construction program.

Associates

Investment Co.

was reported company plans to issue and sell
additional debentures (amount not yet determined).

Jan. 23 it
some

Underwriters

-—

Lehman
Offering—Expected before

Salomon Bros. & Hutzler and

Brothers, both of New York.
July 1.

//

1958 $10,000*000 of first mortgageTaonds. Underwriter
be determined by competitive bidding. Probable
bidders: Halsey* Stuart & Co. Inc.; Eastman Dillon, Union
Securities &. Co. and Smith, Barney & Co. (jointly);
Blyth & Co., Inc.; The First Boston Corp. and Drexel &
Co* (jointly); White, Weld & Co. and Shields & Co.
(jointly);
in

—To

reported company may issue and sell in
third quarter of this year some additional
first mortgage bonds and preferred stock. Proceeds—To
repay bank loans; and for construction program. Under¬
writer—For bonds to be determined by company, with
Jan. 27 it

was

the second

or

prospective bidders including Halsey, Stuart & Co. Inc.;
The First Boston Corp.; White, Weld & Co.; Lehman
Brothers and Harriman Ripley & Co. Inc. (jointly). For
preferred stock, The First Boston Corp., New York.
Brooklyn Union Gas Co.
Nov. 25 it

was

announced that company expects to issue

and sell $22,000,000 of first mortgage bonds next April
or May.
Proceeds—To repay bank loans and for con¬
struction program.

Underwriter—To be determined by

competitive bidding.

Probable bidders: Halsey, Stuart
& Co. Inc.; Lehman Brothers; Blyth & Co., Inc., and
F. S. Moseley & Co. (jointly); Merrill Lynch, Pierce,
Fenner & Beane; Harriman Ripley & Co. Inc. and The
First Boston Corp.
(jointly); White, Weld & Co.
Central Hudson Gas & Electric Corp.
Jan. 22 it

reported company plans to issue and sell
July 1958 $18,000,000 of first mortgage bonds.
This may be done privately.
was

in June or

Central Illinois Light Co.
was announced stockholders will vote March

Jan. 22 it
27

on
increasing the authorized preferred stock (par
$100) from 250,000 shares to 500,000 shares. Underwriter
—Eastman IDillon, Union Securities & Co., New York.

Nov.

12 it was announced company plans to sell about
$5,000,000 of first mortgage bonds sometime after the
turti of the year. Proceeds—To repay advances made by
Peoples Gas Light & Coke Co., the parent. Underwriters
—Probably Billon, Read & Co. Inc. and Halsey, Stuart

Inc.

'

t

Chicago Rock Island & Pacific RR. (3/12)
28 it was announced company plans to issue and
sell $16,000,000 first mortgage bonds due 1983. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co.; Eastman Dillon,
Union Securities & Co. and Blyth & Co.
(jointly); First
Boston Corp.; Kuhn, Loeb & Co. Bids—To be received

Jan.

up

to noon (EST) on March 12.

was

Co.

:

about

$15,000,000 of first mortgage bonds. Proceeds—
repay bank loans and for construction program.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.;

To

Morgan
Stanley & Co. and W. E. Hutton & Co. (jointly); Blyth
& Co. Inc. and The First Boston
Corp. (jointly); Mer¬
rill Lynch,
Pierce, Fenner & Beane and Lehman Bros,
(jointly); Eastman Dillon, Union Securities & Co. and
White, Weld & Co. (jointly).
Citizens & Southern National Bank of

Savannah, Ga.

bank loans and" for

was reported Bank plans to offer to its stock¬
holders the privilege of subscribing for
100,000 additional
shares of capital stock in about 60
days. Underwriter—
None.

Columbus & Southern Ohio Electric Co.

pec. 9 it

was reported company plans to issue and sell
in 1958 about
250,000 shares of common stock. Under¬
writers
Dillon, Read & Co. Inc. and The Ohio Co.
(jointly).
—

★ Commonwealth Edison Co,

(4/15)
company plans to issue and
sell $50,000,000 to
$60,000,000 of mortgage bonds. Pro¬
announced

construction program.

determined

Underwriter—To

be

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Glore,
F°rgan & Co. Bids—Expected to be received on
April 15.
Registration—To be filed about the middle of March.




UnderwTiter—To hi

new

construction.

be determined by competitive bidding.

Underwriter—To

Probable, biddersHalsey, Stuart & Co. Inc.; Blyth & Co., Inc.; Lee Higginson Corp.;
Equitable Securities .Corp.;, Eastman Dillon

■'

reported company plans to issue arid sell

Union Securities & Co. and Merrill

Lyhch. Pierjce, Fenner
(jointly); Kidder, PeabodyX& /Co. and White
(jointly); .Kuhn,- Loeb & Co, Offering—Ex¬
pected in September or 'October; * /X- XX
,, ,f.. * v
& Beane

Weld & Co.

.

Kentucky Utilities
Jan.

21

it

Co.-;/ • •'/•/>v.,

...

also./reported/that /company/hteV,:(>£fer

was

approximately 165,000

additional Shares of its common
stock to its/common stockholders oil a 1 -for-15 basis
,Uniderwriters-/Blyth & Co., Inc. and J.' J; B. Hilliard &
Hon.
:

Co., Inc. (jointly); Merrill Lynch, PiercU;; Fenner &
Kidder, Peabody & Co. (jointly). OfferingExpected in June.X /:/:/o/./^X£///^
Beane and

.

•

(4/9)

Duquesne Light Co.
was

—

Litton Industries, Inc.
Dec. 14 stockholders approved the creation of an issue
of 16,000 shares of $100 par preferred stock and an in¬
crease in the authorized common stock from 2,000,000 to
3,500,000 shares. Underwriters — Lehman Brothers and

of first mortgage bonds due 1988.
bank loans and for construction

$15,000,000

Proceeds

XXX/X^X^.//:7/^.

announced company plans to sell not ex¬

To repay

program.
Underwriter—To be determined by competi¬
tive bidding. Probable bidders:
Halsey, -Stuart & Co.

Inc.; The First Boston Corp.; White, Weld & Co.; Glore,
Forgan & Co.; Kuhn, Loeb & Co.; Eastman Dillon, Union

($ark, Dodge & Co. handled last equity financing which
done iPriyately.,
:
'h X/;X'X'XX://XX//7X:

was

Securities & Co., and A. C. Allyn & Co. Inc. (jointly);

Power

-

Dec. 16, it was announced company may

000 from banks

Corp.

(7/1)
Jan. 29 it was reported corporation plans to issue and
sell $25,000,000 of first mortgage bonds due 1988. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Kidder, Peabody
& Co. and Merrill Lynch, Pierce, Fenner & Smith (joint¬
ly) ; Lehman Brothers and Blyth & Co., Inc. (jointly);
Eastman Dillon, Union Securities & Co., and Harriman
Ripley & Co. Inc. (jointly); The First Boston Corp. Bids
—Expected to be received on July 1.

pertding

borrow $11,500,final finanoing program relat¬

a

ing to the disposition of its gas properties to Louisiana
X Gas Service

Jan.

27

it

Co.,

/vX/'X'r,X X/;/ /-

a new company.

Fund, Inc., Fairfield, Calif.X v—X v

Master

announced this

was

;1;XX:

,t:

newly/organized invest-

ment company plans to offer to bona fide residents 0
California 10,000 shares of capital stock (par $1). Price

—$10 per sTiajre, less an underwriting discount of 8'2%
PrApppfls—TiYiv
'• "> ..•f-*'-5-:,"--> .
JProceeds—For MiniHrpefrrtWit
investment.
...
•

.

v

,,

;

;

Missiles-Rockets-Jets & Automation Fund, Inc.

Florida Power & Light Co. (3/25)
30 it was reported company may

On

Jan.

Jan.

7 this new fund registered under the Invest
Company Act of 1940. Plans to issue $15,QOO,QOi

ment

issue and sell
$20,000,000 of first mortgage bonds. Underwriter—To be
determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce, Fenner
& Beane and Kidder, Peabody & Co. (jointly); The First
Boston Corp.
Bids — To be received up to 11:30 a.m.
(EST) on March 25. Registration—Expected Feb. 25. ;
Georgia Power Co.

Louisiana Power & Light Co. -

/

Drexel & Co. and Equitable Securities Corp. (jointly).
Bids—Tentatively expected to be received on April 9.

corqrnon-stock, of which $7,500,000 will be underwriter
on a firm basis by Ira Haupt & Co.
Price—$10. Proceed
—-For investment.
Theodore

Technological Advisors—Include Dr

Karman, Chairman of the advisory grou;
for aeronautical research and development of NATO.
von

XX Mississippi

Power & Light Co.

Jan.

(3/20)

announced

29

(4/16)

plans to issue and
plans to issue and X sell $15,000,000 of first mortgage bonds due 1988. Under
sell $24,000,000 of first mortgage bonds due 1988, Pro¬ 7 writer—to be determined
by competitive bidding. Prob
ceeds—To finance construction program. Underwriter—
able Judders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb &
To be determined by competitive bidding. Probable bid¬
X Co.;
Equitable1 Securities. Corp. , and Shields & Co.
ders; Halsey Stuart & Co. Inc.; Morgan Stanley & Co.; X (jointly);/ Blyth & -Co.,*;- Inc.; MerrillV Lynch, Pierce,
Lehman Brothers; The First Boston Corp.; Blyth & Co.,
Fenner. & Beano,, Eastman Dillon, Union Securities &
Inc., Kidder, Peabody & Co. and Shields & Co. (jointly);
Co., White, ./Weld. & Go. and Kidder, Peabody & Co.
Equitable Securities Corp. and Eastman Dillon, Union
(jointly).; The First: BbSton jCorp. : Bids -- "Tentatively
Securities & Co. (jointly). Bids—Scheduled to be re¬ v.
r/expeeted to be deceived on .ATjril 1:6. t,y ./
/'///
ceived up to 11 a.m. (EST) on Feb. 20. RegistrationFeb. 10

it

was

announced

it was

company

company

■

Planned for Feb. 21.

X:'XX'

X

/'

'X/'x

Gulf, Mobile & Ohio RR.
Dee. 20 ICC granted company permission

to issue $28,343,800 of 5% income debentures to mature Dec. 1, 2056,
in exchange for the 283,438 shares of outstanding $5 pre¬
ferred stock (no par) on the basis of $100 of debentures
for each preferred share.
Offer expires Feb.' 14, 1958,
but may be extended. Underwriter—None.

.

reported company plans to issue and sell
in May $20,000*000 of first mortgage bonds. Underwriter
—To be determined by competitive bidding.
Probable
bidders; Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce,
was

f.

-

(jointly); Lehman Brothers; Stone & Web¬
Corp.; Kuhn, Loeb & Co.

Jan.

in May.

(4/1)

Feb. 14 company applied to the Federal Power Commis¬
sion for authority to issue and sell
$10,000,000 of first

Illinois

Power

Co.

-■

-

was

Stuart & Co. Inc.; The First Boston -Corp. and Blyth *
Co., Inc. (jointly); Merrill Lynch, Pierce* TFenner_^
Beane, Kidder, Peabody & Co. and White, Weld &
;
(jointly); Lehman Brothers and Riter & Co.
r '
Equitable Securities Corp. and Eastman Dillon, JJh
Securities & Co. <jointly).
Gas A

Electric

Co.

X

"

cell

company

Equitable^fe^erriil

9

if Oiin Mathieson Chemical Corp.

(3/10-21)

Feb.

tive bidding. Probable bidders:
Halsey,
Eastman Dillon, Union Securities &

a

plans to tssue ana
$15,000,000 of bonds this year. Underwriter—To be a
mined by competitive bidding. Probable bidders:
U/.Jes
liaxovj
bonds—Halsey, utucii t & Vv« Inc.;.
Stuart lx< Co.
Corp.; TlxeFirst Boston Corp.; Kuhn, Loeb
Co.,_- -- -•&
.
Veld
Lynch, jriciue, xeimer oc Dcaiic anu White, we i.nian
uynun,
Pierce, Fenner & Beane and
Co. (jointly); Harriman Ripley & Co. Inc. and Eas
Dillon, Union Securities & Co. (jointly).
uv/xiuo

(5/20)

,

it

Oklahoma

reported company plane to issue $25,000,000 of first mortgage bonds. Proceeds—For construction
program.
Underwriter—To be determined by competi¬

-

13

Feb. 3 it was reported

was

Stuart & Co. Inc.;
Co.; White, Weld &
Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly);
The First Boston Corp.; Harriman
Ripley & Co. Inc.
Bids—To be received on May 20. '
•

(Minn.)

l-eported that the company may be co •
sidering the issue and sale this Summer of about$2o,uuiv
000 of first mortgage bonds. Underwriter—To be netemined by competitive bidding. Probable bidders:: Haise.i

by competitive bidding. Probable bidders:
Lynch, Pierce, Fenner & Smith and Lehman
Brothers (jointly); Stone & Webster Securities Corp.
Merrill

Jan. 29 it

l

plan to is

and sell

Northern States Power Go.

determined

mortgage bonds due 1988 and $10,000,000 of sinking fund
debentures due 1983. Proceeds
To repay bank loans.
Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Blyth &
Co.,
Inc. and Lazard Freres & Co.
(jointly); Kidder, Peabody
& Co. and White, Weld & Co.
(jointly); Salomon Bros.
& Hutzler and Eastman Dillon, Union Securities & Co.
(jointly); Merrill Lynch, Pierce, Fenner & Beane; Equit¬
able Securities Corp. Bids-—Expected to be received on
April 1.

//'

•

Bros. & Hutzler,.

—

Power Co.

(jointly)/Morgan Stanley & Co.; The
to be re¬

$6,000,000 ofT'irst mortgage bonds until ui(
first quarter of 1959.
tlpderwriter—To be determmec
by competitive bidding. Probable bidders: Halsey, Stuar
& Co. Iiic.; Lee /Higginson Coiq?.; Equitable Seciuatic
Corp. and Eastman Dillon, Union Securities & / ■
(jointly); Kiddex*. Peabody & Co. and Stone & Webst
Securities Corp. (jointly); Wliite, Weld & Co.; Salomo

Jan. 29 it was reported company plans to issue and sell
200,000 shares of common stock. Underwriter
To be

if Idaho

the directors

New Orleans Public Service^^ Inc.-

sue

Gulf States Utilities Co.

Bids—Tentatively expected to be received

30

Feb. 10 it •wasXannouxiced company does xiot

Fenner & Smith and White, Weld & Co. (jointly); Salo¬
mon Bros. & Hutzler and Eastman
Dillon, Union Securi¬
Co.

New Jet$ey: Rell

and Shields^ Co.

Gulf States Utilities Co.
Jan. 29 it

iTelepiione

Co. :(3( 25) XX^VX'
approved the sale of $30,000,000
debentures. Proceeds—To. redeem aTike amount of ftsio
debentures'idue 1993 on or;about April/28.:;Uhdervrriter
—To be determined- by competitive biddihg., Probable
biddex*s: Halsey*-Stuart & Go- Inc.; White, XWX^ld
r

Jan.

First Boston Corp. Bids—Tentatively expected
ceived on or about March 25.
; ;
'\;:/

—

Jan. 15 it

;;

/-'Kentucky Utilities Go.
X^Z/X^X/T'o/ X": ?r
reported company plans to issue and sell
$10,000,00() of first mortgage bonds. Proceeds—To repay

ster Securities

1958 to sell

program.

Jan. 21 it'was

$10,000,000 of first mortgage bonds, due 1988. Proceeds
—To repay bank loans and for constructibn program.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; White, Weld
& Co. and Shields & Co. (jointly); Eastman Dillon, Union
Securities & Co.; The First Boston Corp. arid Blyth &

ties &

Cincinnati Gas & Electric Co.
Nov. 8 it was reported company plans in

ceeds—For

Consolidated Natural Gas Co.

Company reportedly plans to issue and sell approxi¬
mately $45,000,000 debentures. Underwriters—To be de¬
termined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co.; White, Weld & Co. and Paine,;
Webber, Jackson & Curtis (jointly); Morgan Stanley &
Co. and First Boston Corp. (jointly). -/'">X,x:
Delaware Power & Light

1953

by competitive ' bidding. Probable bidder*
Halsey, Stuart & Co. Inc.; The First Boston Corp.- Glore'
Forgan & Co.; Harriman Ripley & Co. Inc.; White WeS
& Co.; Blyth ,& Co., Inc.; Equitable Securities
Corp. Ree
istratiori—Expected bpfore Spring.;
■J:,
v

7

Chicago District Pipellno COi-

St Co.

determined

Florida

Boston Edison Co.

construction

Underwriter—To be -determined through ^compet¬

Jan. 22 it

20

to issue fan<?
$10,000,000 of first mortgage-bonds due 1988 cpt^'

bidding. Probable bidders: Halisey, Stuart & Co.
Inc.; Morgan Stanley & Co.; The First Boston Corp. Bids
—To be received on April 22.

ceeding

and sell

Thursday, February

Feb.J4 it;was announced company plans

sell

ceeds—For

Jan. 29 it

Atlantic City Electric Co.
Jan. 20 it was reported company plans to issue

...

^ Kansas Power & Light Co; *

-

itive

American Electronics, Inc.
Dec. 30 it was

(4/22)

2p directors authorized an issue of $50,000,000 > first
refunding mortgage bonds. Proceeds-^-To repay bank

loans.

Prospective Offerings

& Co.

Financial Chronicle

The Commercial and

(870)

42

plans to issi

12

it

was

announced ".company

aJl((
■

$40,000,000 convertible subordinate debentures. ^
Ta
rArlnniYi
ILvnn
rwA#Ckn*£irl
ctnplr ISSUCS. ^
ceeds—To redeem three preferred stock
Read
sell

noo/Icy

*

k

'

-

J

general corporate purposes. Underwriters—^lul,VTro.,
e& Co. Inc. and Eastman Dillon, Union Securities
both of New York.

R egistration—Expected

Feb. ^

and-

be

ders;
rlore,
Weld

—To

■

1 sell

repay
r—To

Jan. 27 it

& Co. Inp.; Morgan Stanley

Halsey, Stuart

rs—

Vhite.
-Ex-

eld &

offer,

Public

basis,

;

Stanley & Co. and Drexel & Co..
Bids—Expected week of May 5.
1
:

Service Co. of Oklahoma
reported company plans

• --

-

-

be

in-

OOOto
sr

and

which

'uitable Securities Co.

-

,

,

t

Dec.

relat

n&iana

nds due 1987

Co.,

I

gnts of
,J

Price

-Richfield Oil Corp.

writter
r.oceed

:t» 21 it was

ide Dr

i groui
iTO..

an

White, Weld

Inc.;

announced company plans to

ly).

register with

SEC Reports to

.Pierce,

[*ities &
Co.

&

t'atively

new.

1,000,000
47s%

;rw

riter

'robable
1
Co.

:o:;The
be re

To be received

by competitive bidding.

up

Washington
Oct.

18

Natural Gas Co.

the directors

in debentures.

York.

Jan. 20 it

derwriter—If issue is not placed privately, underwriter
may be determined by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; Equitable Securities
Corp.; Eastman Dillon, Union Securities & Co.; and Salo-mon Bros. & Hutzler
(jointly); Carl M. Loeb, Rhoades
& Co.; The First Boston Corp.; White, Weld & Co.
■

faith and
/ ' /

the

Commission

available

has

utilized
tech¬

enforcement

staff,
crease

was

announced

last" session

and which/proposes

to is-

ntil

th(

jrminec

Stuaii

■,

icuritic
& Co,
Webster
Salomon

report stated.

the

attributable

is

The in¬

to

recent

creasing? K°n F
be con-

525:

deterHalsey,

3

31yth A
nner

?

«

a2

*

rilEK uninformed
ho »/, tJtir

of/i 41S P°S~
Unskf1'led to reap
rltiA
^-P
111 willing
'nties markets" and are th-V6~
>le

!f„

only
companies whose securities are
listed £n stock exchanges; would
be extended (with certain exceptions) to non-listed companies
bavit)g $10 million of assets and
more than 1,000 stockholders,

"w

/

,

,

purchase unknown and specu-

Co,
iointly)

Smaller "Boiler Rooms"

Shift to

a &

rfteriS

.

attitudes,

served,
and sell
e deter-

'e

the

"increase

•

; The Commission reports , that

tS£of^larger "boiler rooms"
m-fnSg
Commission -whos? •activities created such con¬

Unw»|msual opportunities^
he*

,

for

substantially

opportunities for illicit profit

the past year are no longer
operation. The term is applied

cern in

to firms engaged in the sale of
Primarily over the teiejcurities
Phonel Particularly the long disMen-ill
telephone, by high pressure
'dcd-in the Federal securities methods ordinarily accompanied
^Veld •"&
Sastma11 nvs." Thev also "recmire
by misrepresentation, deception
'gorous and accelerated program" and fraud> The detectlon and Proo£
1
invester: protection undeb th^e of, fraud in these cases, the Co
^ including
0f mission indicated, .'is a difficult
sue snd
enforcement,The repefrt stated! undertaking, involving the painsPr°"
and for
Jhe report of the Commission taking collection and verification
°tlQts to its legislative program • of evidence from widely scattered
,n, Read

^t the

illegal and fraudulent sale

securities and increase also the ;i ??curities
eimlum upon successful evasion
t
the - investor safeguards . pro- tanf®

(1)

a

new

more

measures

es.

.

&

Co,

21 or

nutted to the

Congress

2'-




at

its

sources

through theUnited States;"

sures

provided through such regis¬
seek to apprise investors

trations

which favor of the basic facts essential to an
promotional stocks, par¬ informed analysis and evaluation
of the securities. Similar disclo¬
being used by smaller firms wifh ticularly in fields in which the
securities
of
established
enter¬ sures are provided by companies
only a few high pressure sales¬
whose
securities are listed and
men, making the Commission's en¬ prises have shown marked gains.
forcement work even more diffi¬ Among these are the promotions registered on the nation's stock
of new insurance and finance ven¬ exchanges. The aggregate market
cult.
tures
particularly in the South value of all listed stocks amounted

niques to meet the problem. The
"boiler room" techniques are now

/

-

conditions

economic

the sale of

Abused Exemptions

<

added to the

of the laws now applicable

Thp

plans to issue and

Bids—Expected to be received on March 3h

-

n

company

$30,000,000 of first mortgage bonds. Proceeds—For
program.
Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; The First Boston, Corp.; Glore, Forgan & Co.,
Eastman Dillon, Union Securities & Co. and Harriman
Ripley & Co, Inc. (jointly); Merrill Lynch, Pierce, Fen¬
ner &
Beane and Equitable Securities Corp. (jointly);
Lehman Brothers and Salomon Bros. & Hutzler (jointly).

$15,000,000 of first mortgage bonds in April or
May of this year. Proceeds—To repay bank loans. Un¬

all

it

construction

-about

"

14

sell

reported company plans to issue and sell

was

(3/31)

it Wisconsin Electric Power Co.
Feb.

Central, Southwestern, and South¬
problem
which has eastern parts of the country; and
Commission's law en¬
techniques have been employed in
mmission, in its 23rd Annual amendments to 87 provisions of forcement problem has been the the offering and sale of their se¬
port for: the*1 fiscal year; ended the* Federal securities r;laws, de¬ sale- of
unregistered
securities curities which appear to involve
ne 30,r
1957, delivered to Con- signed1 wto strengthen ' the safe- based upon a claimed but ques¬ abuses and possible violations of
bss
currently, ' declared that it guards and protections afforded tionable exemption from the regis¬ the anti-fraud provisions of the
essential for the Commission to the public by tightening the juris- tration
and
disclosure
require¬ laws which require Extensive in¬
itinue a vigorous enforcement dictional
provisions, / correcting ments of the Securities Act. vestigation.
the Federal Securities laws "if certain
inadequacies reveled Among these are situations in
The Commission's report notes
confidence and faith- of the through administrative experience Which securities were transferred
erican
channels
in
Canada, a substantial increase in all phases
public in the capital and facilitating criminal prosecu- through
rkets are to be maintained so:j'tions and other enforcement ac- Switzerland,
Liechtenstein, and of its law-enforcement activities
at the essential supply of capital tivities."
The Commission also other foreign countries. "There is during the last fiscal year, includ¬
a be continued to meet the
high notes that, in a bill introduced reason to believe," the Commis¬ ing possible law violations under
te
of
demand
anticipated
by by Senator J. W. Fulbright and sion stated, "that in many in¬ investigation,, administrative ac¬
esent estimates of industrial pro- endorsed by the Commission, the stances these channels are utilized tions, injunction actions, and cases
referred to the Department of Jus¬
iction with the resultant high financial reporting, proxy solicit- for the deliberate purpose of com¬
tice
for
criminal
prosecution.
indard of living."
'
U ing, and insider trading provisions plicating or frustrating the Com¬
mission's
investigative
effort. Thus, there was an increase from
and'* Exchange

authorized the sale of $5,000,000
Un¬

Proceeds—For expansion program.

derwriter—Blyth & Co., Inc., San Francisco and New

Only bidders in 1956 for $4,000,000 bonds were
Stuart & Co. Inc.; Hornblower & Weeks and
William R. Staats & Co. (jointly).

fiscal high in

Securities

March 6 at Room

to noon (EST) on

Another

he

Probable

2018, 70 Pine St., New York 5, N. Y.

ding.

Congress

proposals recommended to retain American public's
/
confidence in the capital markets.

determined

Halsey, Stuart & Co.; Salomon Bros. & Hutzler;
Eastman Dillon, Union Securities & Co.; Kidder, Peabody & Co., and White Weld & Co. (jointly),, Bids—

Halsey,

dollar volume of registered securities is
reported by Securities and Exchange Commission in its 23rd
annual report. The report focuses attention" on abuses and
violations uncovered in its law enforcement activities, and on
A

Co.

(3/6)

bidders:

For bonds, to be determined by competitive bid¬

Loeb &
&

be

—To

~

announced company plans to raise in mid-

was

and

; :

Prob-

)

Merrill Lynch, Pierce,

Co.;

":; /

/'■/' X>-

issue of new common

Under-

)f

&

and

;ue

Virginia & Southwestern Ry.

Company plans to sell $5,000,000 bonds. Proceeds—To
redeem similar amount due April 1, 1958. Underwriters

$5,000,000 and $6,000,000 new capital, about
two-thirds of which will be through bond financing and
the balance through common stock financing.
Under¬
writer—For stock, may be Hornblower & Weeks, Wil¬
liam R. Staats & Co. and The First California Co. (joint¬

y

April 28.

stock,'the number of
res and the price at which they will be offered not
t determined. The authorized common stock has been
SEC

tively expected to be recefved on June 10.

reported company plans to issue and sell

was

Toledo Edison Co.

Inc. XXX

Riddle Airlines,

Planned for

1958 between

6 it was reported that company may

ii.

16 it

Dec. 3 it

,

late in January
Inc.
a nounce its financing plans, which are not yet comInvest p ;ted. Underwriter —/ May;; be Merrill Lynch,; Pierce,
/
, ./
,000,001
i|f nner & Beane, New York.
J

—

Southern Nevada Power Co.

,

construction. Under-

Bids—Expected to be received,on

i.

8 %%

Registration

Fenner & Beane.

by competitive bidding. Proble bidders; Halsey, Stuart
Go. Inc. and Lehman
others (jointly); Stone & Webster Securities Corp.,
e First Boston Corp. and Smith, Barney & Co. (joint-

a

invest

and to finance new

bonds or debentures. Underwriter—To be
by competitive bidding. Probable bidders:
Halsey, Stuart & Co.; Salomon Bros. & Hutzler; White,
Weld & Co.; Eastman Dillon, Union Securities & Co.;
Stone & Webster Securities Corp.; Kuhn, Loeb & Co.
and American Securities Corp. (jointly). Bids—Tenta¬
determined

—

liter—To be determined

v

23.

plans to issue and sell

$25,000,000

Dean
Bids—Tentatively scheduled to

March, 1958, $15,000,000 of first mortgage bonds. Un¬
derwriter
To be determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth &

& Light Co. .(4/28).;/
n. 29, Frank, McLaughlin, President, announced com■ly plans to issue and sell $30,000,000 of #rst mortgage
pds. Proceeds—To redeem $20,000,000 of 6Vi% series

1,500,-

April

on

(6/10)

Virginia Electric & Power Co.
Dec. 26 it was reported company

in

Puget Sound Paper

.

by competitive bidding. Probable bid¬
Halsey, Stuart & Co. Inc.;, Morgan Stanley & Co.;
The First Boston Corp.; Kidder, Peabody & Co.; White,
Weld & Co.; Merrill Lynch, Pierce, Fenner & Beane and
Eastman Dillon, Union Securities & Co. (jointly). Bids
—Expected to be received on May 13. Registration—
About April 11.

Southern Counties Gas Co. of California

bank loans and for construction pro-/
•am.
Underwriter—To be determined by competitive
dcung. Probable bidders:, Halsey, Stuart & Co. Inc.;
hite, Weld & Co.: asnd Shields & Co, (jointly); Blyth
Co.;' Inc.; Salomon Bros. & Hutzler; Kuhn, Loeb &
Jjf and Eastman. Dillon, Union Securities & .Co:' (joint)• The, First
Boston Corp.; Glore,v Forgan & Co.;
oceeds—-To repay

issue

received

(jointly).

(5/13)

To be determined

March 25.

mortgage bonds due 1988.

May. $16,000,000 of first

Co.

Improvement Co.

reported company plans to issue and sell

ders:

Sierra Pacific Power Co. (4/23)
reported company plans to issue and sell

Witter &

Gas
was

$15,000,000 of first mortgage bonds. Proceeds—To repay
bank loans and for construction program. Underwriter—

body & Co.; Stone & Webster Securities Corp. and

to issue and sell

20 it. was

n;

arc* &

na

United
Jan. 28 it

Jan. 27 it was

Co.; Morgan

jointly)i

tnmon

i

plans to

stockholders the right to subscribe

to market conditions, $40,000,000 of first • $3,000,000 of first mortgage bonds due 1988. Proceeds—
tortgage bonds due 1988. Underwriter—To be deterTo repay bank loans and for construction program. Un¬
ined by competitive bidding. Probable bidders: Halderwriter—To be determined by competitive bidding.
iy; Stuart & Co; Inc.; The First Boston Corp.; White,
Probable bidders: Halsey, Stuart & Co. Inc.; Kidder, PeaMay subject

by the srJe of about $5,000*000 of common

rate purposes.

Underwriter—Exemption from com¬
petitive bidding to be sought. Stone & Webster Securities
Corp. and Dean Witter & Co. (jointly) were only bid¬
ders for last rights offer, which was on a competitive
basis.
.y
.vs---..-i.:/ N:.""-''

& Co.

announced corpora¬
future of $1,000,000

preferred stock, to be followed

or

Proceeds—For working capital «n4 other corpo¬

stock.

struction program.

.

enner

later in 1958

for 57,362 additional shares of common stock (probably
with an oversubscription privilege). Proceeds—For con¬

Philadelphia Electric Co.; (8/5-9^
n
27 it was reported company plans to issue and sell

'illon,

common

convertible debentures

(4/16)

also reported that the company

was

offer to its

.

1959 ($137,000,000 in 1958).,,Underwriterdetermined by competitive bidding. Probable bid- -

be

Iders:

Pacific Power Co.

Sierra

1958 and

ggin.

New

43

Imx, Arcadia, Calif.

Feb. 10, Leo L. Strecker, President,
tion plans issue and sale in near

York, N. Y., handled previous public
offering of 500,000 shares of common stock at $3.25 per
share in July, 1956.

_.,.//• , : \
.■//
Pacific Telephone & Telegraph Co.
n
8 it was reported company, plans $300,600,000 capi1 outlay program. Proceeds—For construction program
•ancisco, Calif.

finance route

and

Fla.

San

Baerwald;, and J. Barth & Co.; all of

&

luger.

Reg.

Tuttle Engineering,

7,500,000 to 15,000,000 shares. Proceeds
expansion and for working capital.
Underwriter—James H. Price & Co., Inc., Coral Gables,

increased from

National Bank, San Francisco, Calif.
b 12 the Bank offered 44,708 additional shares of eomn stock tpar $20) to stockholders at the rate of one
.J share for four shares held as of Feb. 11; rights to
mire-on March 4. Price—$37.50 per share. Proceeds
lTo increase capital and surplus. Underwriters — Ellorthy & Co.; Scmvabacher & Co.; Davis Skaggs & Co.;

Pre-

(871)

The Commercial and Financial Chronicle

. . .

Pacific

:/ 5-.

0

Number 5718

187

)lume

1958

Every effort must

be, and is be¬

ing, made to discover the^ facts in
such cases and to prevent evasion
of statutory

duties by such means."

in the case
issued in connection
and consolidations,
sion states that it is
Again,

17

to

26

in

the number

of cases

prosecution; 33 to 68
actions filed;
in temporary suspensions

referred for
in

court

95 to 132

injunctive

of Regulation A exemptions from
with mergers registration for small issues; 8 to
10 in stop order proceedings chal¬
the Commis¬
still consider¬ lenging the adequacy and accuracy
of disclosures made in connection

of securities

ing possible modifications of
"no sale" theory of its Rule

the

133 with proposed public offerings of
circumstances, securities; 44 to 73 in proceedings
to deny or revoke broker-dealer
provides an exemption from regis¬
tration and which the Commission registration; 952 to 1,214 in the
believes "has been abused in de¬ inspections of the books and rec¬
ords of broker-dealer firms de¬
liberate efforts to evade compli¬

to

over

$262 billion at June 30,

1957; and the dollar volume of
all securities traded on stock ex¬

in the
compared with
billion in 1953.

changes rose to $34 billion,
fiscal year 1957 as
about $17

Grimm & Co. to Admit
On March 1 Robert Warren

will

partner in Grimm. & Co.,
44 Wall Street, New York City,
members of the New York Stock

become

a

Exchange.

W. L. Lyons

Partner

LOUISVILLE, Ky.—W. L.
& Co., 235, South Fifth
Street, members of the New York
Stock Exchange on March 1 will
admit William Lee Lyons Brown,
Jr. to limited partnership^
Lyons

To be

Starkweather Partner

March 1 will
partnership in
Starkweather & Co., Ill Broad¬
W. Lee Brokaw on.

be

admitted

way,

to

of

New York City, members
Stock Exchange.

the New York

which under certain

New A. M.

Kidder Branch

PETERSBURG, Fla.—A. M.
Kidder & Co. has opened a branch
office at 195 Seventy-fifth Avenue
under the management of Kings^
ST

provi¬ signed to enforce compliance with
revisions of the reporting and other require¬
ments of SEC rules; and 952 to
the rule, the Commission stated
ley E. De Rosay, Jr.
1,214 in the cases under investiga¬
"may ultimately prove necessary
tion.
to prevent its being used as a loop¬
With Harris, Upham
hole for evasion of the registra¬
The dollar volume of securities
(Special to The Financial Chroniclf.)
tion requirements."
registered with the Commission
ance

with the registration

sions."

' Substantial

the sale of pro¬ for public sale during the year
of new ventures reached a new fiscal year high of
has placed a most serious burden $14.6 billion, a 94% increase over
1953. Financial and other disclo¬
on the Commission's investigating
An increase in

motional

stocks

LOS

R.

ANGELES, Calif.—Stephen

McKibbin is now

Upham

&

Co.,

Street.......

523

with Harris,.

West
" /

-

Sixth
.

,

44..

;

(872)

With Paine, Webber

is

Mark H.

—

associated

now

with Eddy &

was

-

(Special to The Financial Chronicle)

is

with

Benj. D. Bartlett

&

Co., 313 Vine Street, members

of

the New

York

and

Developments indicate the business decline may be "somewhat
greater" than that of 1953-54 and recovery
may take longer—
"unless the consumer becomes an
aggressive buyer of goods"-—
a
well-known
Wall
Street
investment
research
organization "
reported. ■/.■%
^.
„

••

CINCINNATI, Ohio—Charles S.

.

The

Cincinnati

report

largest

Stock Exchanges.

U:.,.-;.;-/.

,

made

was

diversified

closed-end

^

w

to Tri-Continental
investment

.

Corp., the nation's
and

company,

three

associated mutual funds, Broad Street
Investing Corp., National
Investors Corp. and Whitehall
Fund, Inc., by economists of Union
Service Corp.
'
\
■';;;
"There

is," the

economists

stated,

"little indication of this
However, as yet there is no,

increased

A MUTUAL

purchasing i at present.
evidence that this decline will assume the
1937-38 period and, even more

INVESTMENT

character of the

severe

certainly, not that of the long de¬

FUND

pression following 1929.
"Business activity," the
report noted, "is now at approximately

line, calculated
having exceeded this line for

The

While it may well decline below the trend line for
time, as it has often done in the past, continuation of the
long-term growth should eventually bring a higher level of
activity
some

Tkalmwt

without generating

Dividend S c'/ieSt

boom.

a

"There has continued

a

wide divergence between the

common

FREE INFORMATION

stocks of cyclical companies and consumer
goods companies. Even
at the current level, cyclical stocks have declined
more from their

FOLDER AND PROSPECTUS TO

Many optimistic forecasts
early recovery in business are based on the expectation of
increased consumer buying. A
study of earlier periods indicates
that such expectations are not
supported by historical precedent.
of

YOUR INVESTMENT DEALER OR

NATIONAL SECURITIES &

an

"A comparison with the last recession in
cate that the current situation is not as

RESEARCH CORPORATION

strong in

Established 1930

with
120

1953-54 would indi¬

Broadway, New York 5, N. Y.

the exception of

declining expenditures in the
This

accelerated

-Continental

report

as

earlier period." '

government

brought

respects
against

many

increasing defense expenditures

out,

spending

;

defense,

on

the Tri¬
benefits,

plusv "unemployment

public

level

of

18,862.

all

to

seem

considerations, - the report opined that there

be

Development Mutual Fund, Inc. This

that

fund has

movement,

June

or

an

earlier

month

will

see

the

a

start

of

a

recovery

well have

may

been

lower level by that time."

I. D. S. Funds Assets Now $1.4 Billion

Atomic Development Securities Co., Inc.
Dept C

Total net assets of the five mutual funds
managed by Investors
Diversified Services, Inc. increased

$26,777,008 during 1957, Joseph

1033 THIRTIETH STREET, N. W.

M.

WASHINGTON 7, D. C.

Fitzsimmons, President of IDS, announced Feb.

18.

As of Dec. 31, 1957, combined total net assets
of the five funds,
Investors Mutual, Inc., Investors Stock
Fund, Inc., Investors Selec¬
tive Fund, Inc., Investors
Group Canadian Fund Ltd. and Investors
Variable Payment Fund,
Inc. were

$1,388,651,090

HAVE YOU

$1,361,874,082 at the close
The

CONSIDERED

assets

FINANCIAL

of each fund

of 1956.

taken

at market

'

value

Mutual, Inic

tion's

Investors Stock Fund, Inc

at

in Financial
Industrial Funcl Shares, you
can be part owner of over 100
companies in 18 different in¬
dustries, selected both for in¬

and

long-term
possibilities.

Totals

growth

"On

Jan.

corporation

booklet-proiptctus,

1958)

mail cowpan today.

m
Management Corp.

net

shares,

end

Principal Underwriter

3,

1958,

assets

of

Investors

net

Mutual, Inc.

assets

81,1957

FIF

i

i

950

i

Denver

Management Corp., Inc.

the

rose

Fund

to

amount

in

the
of

five

City__

i

State

14,534,221

regained

to

K




66% a yeat ago!
utilities constituted the

largest

followed
New

1957 and

by

industry holding,

oils

and

$9,060,437,000

commonstock

insurance

section

Fund's

G-IOD

and
short-term
corporate
obligations held by the 143 mutual

in

tii

A!

$594,225,000 at the end of January.
This
compares with
cash holdings of
$523,154,000 at the close of De¬

23,100
shares of American Can Co., 8,300
American Natural Gas Co., 22,520

cember and $516,921,000 as of the
end of January a year ago.

General Motors

Babcock

Wilcox

&

No dividends

Fund

ordinary income

J

sh
in

ac

18

included

Eliminations

totalled

Co., 40,000
Corp., 9,000 Guar

.4$

1

Fi

!w.
st:
pe
M in

anty Trust Co., 15,100 Kerr-McGee
Oil
Industries, Inc., and 20,000 g ne
m dc
Mississippi River Fuel Corp.

Wisconsin Fimtl

Fi

^

revealed in the mutual fund's

ment

to

take

reversal

trend

enable

of

manage¬

advantage

of

general business
investment oppor¬

of

they

as

present
Harold W.

selves," said
President.

them¬

Story,

Ltd.,

are

in

amount

at

its

status

as

1957, 8.7%

cash

-{-Initial

of

Feb.

30,
cor¬

;

net

1957.

assets

AO

/

Dec.

totaled

31,

a

capital
cents

gains
share

a

to

is

being

shareholders

the sales

The

of securities in

report

showed

during the

,

Ci

industry,
which was feeling somewhat pessimistic, was surprised by a spurt

M

increase

shares

in

of

compared

with

382,130

1957

and

with

capital

its

stated

which

-

of

policy.
may

the fund to
^

./<

■r

were

said

Slayton

to

t

a

the

Public

Utilities,

3.5%;
•

9.9%;

Chemicals,
»

_

tion, 4.6%;

Food

and

5.2%;

and

,

of

inventory

j

M

Distnbu-

Beverages,

4.2%, and Stores, 4.0%.

Mr.

Stocks held in Wisconsin

panies

include

are

shares

Corp.,

Wisconsin

Slayton also looks

months.

<

Co.,

?

o

Wisconsin Public' Service Corp.
v

■

..

joi
&

in;

J.

i

e

i

m;

.<

'

-

i 1

Ne
th,

E>

He

capital.app^op *
nrnilprnt-111
tions for new plant and equipmj;
are
reduced," he said, "they alC
"And, while

Wisconsin Electric Power Co. and
nr.-

|oi

^

textile, apparel and TV mdi
to increase output in the ncx

com¬

Bank-

Bucyrus-Erie

He

i

^

such

-

red}ich°"

goods in
tries—big users of steel and ot
.
metals.
The steel industry msei
expects to complete its inj ei1
\
reduction bv the end of
:n
U Ucll LCI
WHU
auarter,--with a pickup liken hi'
a
qie second
quarter followed w
steady second-half gains.

__

Transmission

half

St

Fi

has been in durable

Banks, 9.3%; Oil and Gas, 9.1%;

Drugs,

nnnobt

agah1According to Mr. Slayton, more

1957.

Ur

said

hc

retailers will find themchnvt
selves caught short nf stocks and
of stocks

«many

than
of

joi

enti

year.

happens»

Ar

and sales

have to start buying more

~

corre¬

bilho

rate of $3

mi.rAc

Gas

•%

ill

will rise about 4% over the

outstanding

securities at the end

mi

late in Decern

for the first half of 1958

The larger holdings by industries

the

derived

a

1otn

inventory

slow down

an

ent

realized

nn

sales

se-

totaled

Instead,

be

nal

car

376,184.

$40,958,212, equivalent to 67.4%.

gains

w

the automobile

17.433
during 1957 from 2,147,433 to 2,to 9-

.were:

of

hand,

the fast raw
reduction
caa
continue much longer," with re¬
tail sales continuing to hold UP
as well as they are.
It is generally
expected
that
liquidation wi
Mr.

of

the

at

was

on

ber," he added.

1957.

6,333,

and.

filled

"Even

of

The fund also

11%
of

to

year

high.

an

number

of

close

orders

out of stocks

dis¬

that

Sc

to reduce
producers, in

output, he said. As
result, the sudden record burst

a

Jan.

on

Si

retailers

of Christmas sales had to be

or

distribution

sales

Be

turn,; to cut

1956

$11,634,065

fund

October-November

caused

their

se

pa

V" ;"

in inventories.

lag

in

to the 19,000 share-

mutual

The

pa
ve

his

of

chn^
share.
in new

n

$5.42

On

V'-

nationally-distrib¬
group
Mr.
Slayton cited the sharp December
upturn in
retail sales as one
major reason'for the rapid drop
uted

Dec.

on

means

-■■

■

Reporting

31,
1957
amounted to $10,756,227 or $4.53 a
share.
This is equal to $4.79 a
share after adding back the 26c
capital gains distribution paid on

cured

12,

offering

On, June

in cash and

was

assets

31,

At

Fi

holders

and

common

bonds.

or

Net

business

/.sard."

porate bonds and on Sept. 30, 1957
this proportion rose to 14.2%. At
the end of the year, 21% was in

all-time

billion

SI

a

(as

the

reinvested, thereby increasing the assets
•t .i

invested
in
preferred
stocks.

349

paid to shareholders in Investors Group Canadian

accordance

sponding extent.

fully

lo

to," with the start of a gradual
recovery "that much closer," Hil¬
ton H. Slay ton, President of the
$49 million Managed Funds, Inc.,

any

the

and

tunities

the

if di

has declined "about all it is going

tory readjustment

will

$2
S sh

The current fast pace of inven

an¬

nual report.

"This

Slay toil Savs

an

cash, U. S. bills and corporate
bonds as of Dec. 31, 1957, it was

number of shareholders increased

|

I

I

ei

during the

Angeles.

ties

members

the

Regis Paper Co., and 5,700 Security First National Bank of Los

Cash, U. S. Government securi-

fund

to

quarter of 1957 included
10,000 shares of Merck & Co., Inc.,
23,100 Polaroid Corp., 10,000 St,

of Jan.

as

additions

final

31, 1957.

on

,

Currently

$1,011,459,000.

,

—

Fund's

tii

investments,

compared with
Electric

31, 1958 from net realized profits

$107,677,081

totaling $60,798,096, of which $49,925,353

I

.

Street.,

tii

$9,217,948,000 as of Jan. 31, 1958 compared
with $8,714,143,000 at the end of

21,133,239

$120,366,344

SI,006,233,000,

funds

72,216

1956.

I
,

n<

m

w

Wisconsin Fund held 80 differ¬

1957 dividends in the

3, Colorado

w

per

members amounted to

tributed

Shareholders in the three United States funds reinvested
their

Broadway

of

com.

stocks.

nine

227,828,889

$10,872,743 from capital gains,
paid to shareholders in the five funds
during 1957.

Department CFC

i

declined to $30,445,-

open-end

nJ ?i ™d

Common stocks represented
60%
of the Fund's total

company

A

Dec. 81,195C

from investment income and

i

1956

^Canadian.

increase

an

Dividends

r-

of

1957.

Shareholders

454,346,

and

net

$1,388,651,090 $1,361,874,082

.

when its

June

1957

21,311,903

Investors Variable Payment
Fund, Inc.

investing

the

240,320,725

Investors Group Canadian Fund Ltd.

i

143

on

share.

by

Total net assets of the Associa¬

Jan.

*$992,117,897 $1,005,234,873

Investors Selective Fund, Inc

Name,

redemption

comparison with
$33,411,000 in December, 1957 and
$37,261,000 in January a year ago.

■T'yv-'.v'
Dee.

Investors

FUND?

against

as

following table shows the comparison between total

ends.

year

INDUSTRIAL

i

for

A year ago the fund was almost

growth la principal and income.

FIF

in

000 in January in

companies active in the atomic

for free

-

-

at
fo

$12.44 at the end of 1956 to
$11.19, after adding back capital
gains distributions of 34 cents

The value of mutual fund shares

turned

any

although the level of business

stabilized at

field with the objective of possible

to

ia

All But Over

prospectus describing Atomic

stocks selected from among those
of

re

Business Decline

historical basis for expecting the con¬
sumer to bring this
readjustment to an early termination because
of aggressive purchases
and, until there is more evidence of
buoyant purchasing, one is forced to conclude that it is doubtful

come

|l33 219 (»0

^ere; 5133 219.000I on IDee. 31

in

Viewed from

holdings of

d(

pared with $134,034,000 a year ago,
^<r^ a^s,ei 7. ?.e J?er share declined
from

Wisconsin Fund, Inc. had more
than a fifth of its total holdings

"does not

By

•

compared with 39,000

'

20% in Bonds, Casli

feeling of security which stimulates
"the over-capacity of industry
precludes, for
some time, rapidly
rising prices which lead to consumer stocking
of goods, as was evident at the outbreak
of the Korean War."

We will be glad to send you a free

ti:
w

„

retail

free spending" and

ATOMIC

m

\

Russian advances in the missile
field, the economists observed,
"have not been conducive to a

In

than 75

m

sales, which are now reducing inven¬
tories and eventually should call for
increased production."

Interested

more

JjqS!

18.371 new
1957, 15,910
such plans were opened and, in
January a year ago, the total was
V

IS

cc

opened
In December,

plans.

and private pension payments, and an
increasing portion
of wage earners in service
industries, should go far to sustain a

reasonable

an

in

popularity of accumulation

investors

as

highs than during the 1953-54 recession.

WRITE FOR

st
ar

I11 Year

plans for the regular monthly or
quarterly purchase ;of .m u t u a 1
fund shares continued in January

several years.

nW

Record

company

shareholders

the level called for by the
long-term growth trend
at 3.75% annual
increment, after

at

Purchases by investors of shares
(mutual of The George Putnam Fund of
fund)
shares in January were Boston during 1957 were the high$131,605,000 compared with $102,- est for any year in the history 0f
952,000 in December, 1957 • and the Fund, a total of $22,644,000
$149,911,000 in January of 1957, compared ™th $20,866,000 during
according to the National Asso- 1958 according to the 20th
Annual
ciation of Investment Companies. Report to
Shareholders. Shareinvestment

Decline May Be Greater and
Recovery Longer
Than 1953

v.

purchases-of open-end

Investor

With Benjamin Bartlett

Millard

Sales

January

$131 Million

By ROBERT R. RICH

formerly

Company. "

Thursday, February
20,1955

.

Putnam Fund

with

Paine, Webber, Jackson & Curtis,
111 Pearl Street. He

.

I11

(Special to The Financial Chronicle)

HARTFORD, Conn.

.

Fund Sales

"

Klein

Financial Chronicle

The Commercial and

Number 5718

187

Volume

.

.

.

The Commercial and Financial Chronicle

still only 11% under a year ago
and 31% higher than two years

1958

in

und

r

Slayton said business senti¬

Mr.

of

has

tially"

with the realization that

the economy

what

>44,000,
during
Annual

Assets Now

has been un¬

.

.

assets

net

Selected

of

American Shares at Dec. 31, 1957,

the

nounces

Campbell,

election

the

"simply an inventory President, were $59,805,980. Out¬
readjustment during an transition standing shares of 8,001,847 were
toward

expansion."

for

Fund

^ *

*'

'

has become

business upturn

1 com,

of

!arago,

eclined

widespread, not only among busi¬
nessmen .but also among
econo¬

1056 to

mists and

a

financial observers..

-"This is

nts per

is

to

elected

total assets $65,165,831, out¬

were:

shares

6,556,189,

93c

capital
a

in

share

Jan.

was

value

Miss
b

a

Fidelity Fund

lolding,

shareholders and shares

o., Inc.,
000 St,

,

) Guar-

38% more

ii

ne

of 26c

a

$ Fund reported net asset value of
U $232,089,331; Net asset value per
I share as of this date was $11.72.
Dividends from investment income
& an 1957 were 50c per share.
A
If distribution of 58c per share from

H long-term capital gains realized
liiven

I

in 1956

jusiness

I

As

At the year-end common stocks
represented 97.5% of assets; cor¬
porate short-term notes, convert¬

ible bonds, and cash accounted for
the remaining 2.5%. The company
had investments in 113 companies.

made on Feb. 4, 1957.

was

of Dec.

31, 1957, over 37% of

steel

electronics

electrical

8.2%,

&

7.8%.

In the fourth

quarter the com¬
added stocks of these com¬
panies to the portfolio:
Allied
Chemical
&
Dye 2,000
shares,
American Airlines 3,000, Anacon¬
da 3,000, Emhart Mfg. 500, Lily
Tulip Cup 2,500, Louisville Gas &
Electric
3,800, May Department
Stores
4,000,
National
Gypsum
5,400, Northern States Power 7,000,
Republic Natural Gas 5,000 and U.
S.
Gypsum
8,000. Increases
of

pany

J Fidelity Fund shareholders are 2,000 or more shares in stocks
gradual ^participating in a continuous in¬ previously owned were: Bristol-

is

going

r," Hilof the

Is, Inc.,

plan or a dividend re¬
investment plan account, repre¬

vestment

a new

high figure for such

participation.
distrib-

With Shillinglaw,

Mr.

M'cniber
one

as

id drop

sales

(Special to The Financial

v

Bolger

Chronicle)

CHICAGO, 111, VD a v i d ; M.
has joined the staff of
Shillinglaw, Bolger & Co., 120
,

Bolger

South La Salle Street.
-v

■,

■

reduce
ers,

As
d burst

aid.

t>e

tilled

ldustry,
lat pes-

spurt

a

(Special to The Financial Chronicle)-

ST.

Mo.—-Wesley W.
with Yates, Heitner &

LOUIS,

Crone

Woods,

is

Paul

members

Brown

the

of

Midwest Stock

New

Building,
York

and

Exchanges.

Decern-

Two With Eastman Dillon
rate

ist

"can't
ith re-

lold up

ncrally

will

i

billion

(Special to The Financial Chronicle)

DIEGO, Calif.—James M.
Anderson and Harry R. Hyde have
joined the staff of Eastman Dillon,
Union Securities & Co., 415 Laurel
Street. Both were previously with

First California Company.

(Special to The Financial Chronicle)

duction
indusd

Co., First National Bank Build¬
ing.

itself

With Edward D. Jones
(Special to The Financial Chronicle)

ventory

first
kcly i»

ST. LOUIS, Mo.—John J. Hergmann is now affiliated with Ed¬

'Cd

by

ward D. Jones & Company, 300

for

the

he

•histries
cxt few

North Fourth Street, members of

Exchanges.

He

was

formerly with

henry, Franc & Co.

Prime Investors Opens
investors

Co.

has

been

formed

xvuth offices at 2409 Cadillac Drive
t°

engage in

securities business.



a

early
is

the

opinion of K.
M. Bartlett,
President of
Horizons
c o

In-

rporated,

process

materials

and

over."

The

chief

did

shares.

Boldly

fear

executive

specific

but

instead

the

business

conditions,
attitudes

general

strike
this
a

out

the

fear

1957

included:

Increases—Auto¬

attitude, they prefer to adopt

"wait and see" attitude that, it¬

self, is only
problem.
"When

compounding
"
;
'

business

whatever

the

slows

American Associates in the British

they

the

potential loss

Isles.

from their all-time

down,

and unem¬
ployment grows, the general pub¬
fears

decides

would

highs and have

:~

For

the

last

as

of

for
not

reason,

its
to

own

spend

future, and
the money

six

years,

Miss

sold

consider

set

optimism

the

stage for renewed
and public

of business

at large.

much of their holdings be¬

Treasurer of the Girl

the

United

States

of

Yes, But

the acquisition of the
the

Gordon

Girl

birthplace of
Low, founder of

Scouts

rent cash

the

of

United

paid off from

cur¬

of the Banks.

resources

Upon redemption of the issue, out¬
standing notes of the Banks will
have been reduced to $659,000,000

to member

the

in

report

to

"Whether th» stock

decline has fully or

adequately re¬

flected the lower business figures
.

.

remains to be seen.

.

But some

said.

The

institutions, Mr. Smith

repayment of such loans

in turn reflects

a

heavier inflow of

savings into member institutions
a seasonally smaller demand

and

for mortgage funds.

of the most
to

the

important facts, which
discerning pointed to pos¬

With Illinois Mid Cont.

sible trouble when the market was

(Special to The Financial Chronicle)

turning in a more favorable
direction
we remain strongly
convinced of the basic long term

CHICAGO,
111. — Patrick
C.
Brewer, Alfred J. Ganz, Robert E.
Kehl and Victor A. Zucco are with

strength of the forces working in
favor of the owner of American

Illinois Mid Continent Investment

to be

...

common

stock

Co., 676 St. Clair Street.

equities."

Joins J. A.

A^hnrs. Lestrange Admit
Pa.

Arthurs,
Gateway

"The

rapid changes taking place in agriculture
largely the result of a major breakthrough in
agricultural science and technology. In recent years
agriculture has been experiencing
a veritable
revolution in produc¬
tivity.
are

Stock Exchanges,
on March
1 will admit Joseoh P.
Short and Alexander J. Burnett

and

Pittsburgh

III to

partnership.

SAN DIEGO,

has

Berger
J.

A.

Avenue.

T.

R.

He

Peirsol

&

was

&

I. du Pont & Co.

the

Co.,

staff

1030

formerly

Co.

and

*

per man hour
has doubled since 1940. There has

been

production

more

within

the

change in agriculture
lifetime

of

men

now

living than in the previous two
thousand years.

,

"Changes of such magnitude
place great stress on our farm peo¬
ple and on the social, political and
economic institutions which

serve

Pres.

Eisenhower

them.

Far-reaching adjustments
are being made which involve the lives and hopes
of 20,000,000 men, women and children on the

farms of America.
,

"The scientific revolution in

agriculture is irre¬

is continuing. It cannot be avoided
and it need not be feared. In recognition of this basic

versible

and

we must find ways of utilizing more com¬
pletely the abundance that our farm people are now
able to produce; we must find ways of further ex¬
panding markets for this increased production, not
only among our own citizens but among people all
over the world who need the food and clothing we

fact,

produce in such abundance. At the same time we
must help our farm people to cope with the some¬
times harsh consequences of their own unparalleled

and strengthen¬

ing free enterprise and the family

farm."

Calif.—Charles S.

joined

Hogle

*

"Farm

ability to produce, while preserving

Hogle

(Special to The Financial Chronicle)

—

Lestrange & Co., 2
Center, members of the New York

tho

—

finance 2%,
building 1.5%, chemical & drug principal amount.
5.6%,
electrical
&
electronics
The strong cash position which
3.7%, electric utility 4.3%, food enables the Banks to meet the
2.4%, oil 4.2%, retail trade *1.3%.
large note maturity without re¬
Decreases—aviation 6%, machin¬
funding primarily reflects repay¬
ery 2.7%, paper 2%, railroad 1.9%, ment to the Banks of loans made
says

of

public. Rather than
boldly in the face of

points out that during the last ten that would actually set the wheel3
New York
years,
thousands of people in¬ turning again."
where she took her vested in the stock market who
What, then, is the answer to this
Master's degree in Business Ad¬
never had done so before.
paradoxical problem? Mr. Bartlett
ministration; later she gave a
"Even though today they have concludes
that
leadership must
course at the New School for So¬
come from those large companies
cial
Research
on
"Women
and experienced no actual loss and, as
Their Money." In 1950, she was a a matter of fact, still realize im¬ whose expansion plans and other
of
positive
thinking
guest lecturer for the British- portant paper profits, nevertheless examples
School of Commerce

Feb. 17 will be

Largest
changes
in
industry
holdings of common stocks during

im¬

Mr. Bartlett believes that most

lic

Horizons

Out

business executives do not actually

Mr.

times

conditions

Strike

search organi¬

M. Bartlett

business

prove.":;.

re¬

the

States of America, and served as
3,200, Otis Elevator 3,000, Pai'ke- Vice-Chairman of the Building
Davis
2,000,
Socony
Mobil Oil Committee of the National Head¬
13,000, Standard Oil (NJ) 12,000, quarters at 51st Street and Third
Tennessee Gas Transmission 2,000,
Avenue, dedicated January, 1958.
Texas Co. 3,000, West Penn Elec¬
tric
11,000, Zenith Radio 3,700.
Companies eliminated from the
portfolio
were:
Allied
Stores,
Everett Smith, fiscal agent of
American Smelting, Consolidated
the Federal Home Loan Banks, on
Edison, Delaware Power & Light. Feb. 17 announced that $148,000;The Company decreased its hold¬
000
Fdderal Home Loan Banks
ing of Ingersoll Rand by 4,900 4.30% consolidated notes maturing

PITTSBURGH,

EAST MEADOW, N. Y.—Prime

lipinem
iey

Relations ' at

r

,

"In

University,

the New York and Midwest Stock

ropria;
are

Public

at its high last summer now seem

other

y

taught

Juliette

3,000, Louisiana Land &
Exploration
4,500, Monsanto
Chemical 11,828, National Dairy

shareholders:

&

to

if

•

According to
Bartlett, "if people were cer¬
"Women in Banking and Finance"
tain that business conditions today
and "Your Career in
Banking," reflected nothing more than the
the latter a compendium of suc¬
situation of the mid-1940's, I have
cess stories about men in
finance, no doubt that much of the general
both published by E. P. Dutton &
pessimism would dissolve. And,
Co.
after all, any general business de¬
Miss
Campbell has lectured cline is not so much a matter of
throughout the United States on specifics, but rather of personal
banking subjects, especially with attitude compounded millions of
reference to the position of women
in banking today. Miss Campbell

"

Cleveland pro

the

Such

Kenneth

Miss Campbell has written two
on
careers
in
banking,

afraid of their pos¬

loss."

America played an active role in

<

Home and John Van Home have
joined the staff of J. Cliff Rahel

lead

conditions

1930's."

elected Assist¬

books

are

In addition to

zation.

Scouts

Edison

was

future

Cleveland

of

later be¬

18,000, Feder¬
ated
Department
Stores
3,000,
General Foods 5,000, International

Rubin

OMAHA, Neb.—Edwin N. Van

them

again
i, more

She

they

sible

1955, such a person may
well have purchased a new car,
a new home, or other such items,
not because of his specific income
at that time, but because of ex¬
pected profits from investments.
"Today, • of course,: selling to
protect investments is causing the
market to drop still further, and
is
preventing • any
determined
comeback which might be possible

the

Of¬

ant Vice-President in 1949.

monwealth

Join J. Cliff Rahel

said,

and

relations.

Campbell

steel 3.1%.

entire

■:ks

fice

cause

are

all attitude.

that

of

the Main

Myers 4,500, Chrysler 9,000, Com¬

mobile 1.8%, bank &

SAN

id sales
e

we

■

FHLB Redeem Debs.

With Yates, Heitner

in

■

•

i ii

partment

we

causing the bear¬
ish market, Mr. Bartlett contendsthis is only part of a general over¬

charge of the
;Service De¬

Campbell

boldly" rather than

recession,
are experiencing the same

was

Nickel

senting

share-

ip

Dorcas

haunting

that

mild

coming Director of all Service De¬
a share, the same as in
capital gain distribution partments, and subsequently of
share was declared Jan. publicity, advertising, and public

2, 1958, payable Jan. 29, from net
profits realized in 1957.

Dur- 8.8%,

16%.

period approximately

■3 ing 3957 sales of new shares were
-McGee
nearly five times greater than re20,000
U demptions.
\
-r
rp.
$
As of Dec. 31, -1957, Fidelity

Says

A

31, 1957, there were
shareholders in Fidelity
I Fund than at the end:'of 1956, Largest holdings of common stocks
while the number of shares out- by industry were oil 19.9%, elec¬
tric utility 11%, chemical & drug
standing increased in the same
Dec.

of

As

23,100
)., 8,300
22,520
40,000

outstand¬

ing again reached new highs con¬
tinuing the trend that has char¬
acterized the history of the fund.

Secu-

of Los

twenty-

eighth Annual Report states that
in 1957 number of Fidelity Fund

the
lcluded

1

1956.

Inc.,

Fund,

Fidelity

Fund's
ng

stock

out

series of events

but! rather that

a

totaled 31c

At New Peaks

surance

of

midst of

to

placed
.

prices during the year. Dividends
declared from investment income

the. .movement

the

Camp-

1 1

e

"strike

to

Concludes

not

the University
of Michigan,

:

was

flected

in

is

the bank from

distribution of
declared and paid
Asset

people

many

-

Coming

gain

1957.

the

that office.

to

share¬

holders 16,661. Net asset value per
share was $7.47.

A

be

business

"The real fear that is

woman

at ago,

the

bank,
Camp-

bell

probes paradoxical psychological bearish factors

on

leadership must come from large
companies whose expansion plans and other examples of
positive thinking would set the stage for renewed optimism by
business and the public.

In

first

calls

"wait and see."

years

parable figures at the end of 1956

tments,
ed

the

of

.

60%

110

Miss

change in sentiment $9.94 a share on Dec. 31,: 1956.
which could find sudden reflec¬ With, appropriate adjustment for
tion in the stock market at any capital gain distribution, the per
share decline approximately re¬
time."
C.V'

capital

and

Dorcas

<

held by 19,838 shareholders. Com¬

standing

fact," he said, "expectation

"In

-

spending

less

ately

,000 in

government and
and moder¬
spending by. business

more

consumer

high

of

Vice-President.

as

reported by Edward P. Rubin,

as

K. M. Bartlett

George O. Nodyne, President of
the East River Savings Bank an¬

$59 Million
Total

of East River Savs.

:

45

Suggests Positive Business Leadership

Campbell V P

dergoing is

Share,

ed

Selected American Dorcas

"substan¬

improved

ment

high,
tory of
-

w

rate."

1955

shares

capital goods spending
should still exceed the

Thus

ago.

(873)

—President

Dwight D. Eisenhower

of

Sixth
with

Francis

the others
solution will be found
only in a shift of many agricultural producers into
other pursuits. Let's face that fact.
But,

as

the President must know and

ought to know, the ultimate

46

Chronicle

Commercial and Financial

The

.

.

Indications of Current

latest week

week

Business Activity

id

AND STEEL INSTITUTE;
Indicated steel operations (per cent capacity)
Equivalent to—
Steel Ingots and castings (net tons)

AMERICAN IRON

Week

Latest

AHf

§54

H

1,496,000

*1,445,008

2,504,000

n

l>

:

'

INC.—Month of December:

:

<

Feb.

Feb.

Feb.

526,857

$322,937,000

26,836,000

182,733,000
140,204,000
111,388,000
28,816,000

—Feb.
-Feb.

8

7,460,000

DEPARTMENT STORE SALES INDEX—FEDERAL
SYSTEM—1947M19 AVERAGE = 109 —

8

413,000
93

RESERVE
—
Feb. 8

12,417,000

Feb. 15
DUN

(COMMERCIAL AND INDUSTRIAL)

13,420,000

•\

$45,325,000

INVENTORIES — DEPT., OF COMSERIES—Month of November

->8 145 0

178,040,000
133,606,000
107,382,000
26,224,000

461,000

8,790,000
506,000

tu
V $52,899,000

$50,279,Wo
se

ft

,

*$54,100

$53,800

—

12,800

Wholesale

12.800

.

s€

24,300

24.200

92

108

:

•

———1.—1

Total

bl

$90,900

H-

*$91,100

v

ta

DIVIDENDS—PUBLICLY REPORTED BY
S. CORPORATIONS—U. S. DEPT. OF
COMMERCE—Month of December( (000's

CASH

oi

U.

(

-i

$2,|31,900

101

V<

4"

:r'\'

319'

;V January (000's omitted):

..) J:yV.',V'v i

-

-

to
tli
es

f

,

$1,258,813 yy-$966,900
,201 •
409,765
,612
14557,135

conStfcUctionL——
Private construction
public construction ——~———.—

*?

...

•

•

—

;•

ca

$1,663;
.' "741,52

.

~

v

;

\

tl1

9221

;667i4:

—

317

260

342

m

$2,217,401

CIVIL ENGINEERING CONSTRUCTION — EN¬
GINEERING NEWS-RECORD — Month of

11,946,000

12,400,000

$325,000

;

JFeb. 13

it

fl

-(Millions of dollars):

9,725,000
601,000

12,289,000

th

?

'

MERCE NEW

•:

co

£

iSZ
:10,946 S

12,895.000

$311,646,000

&

—

83

.;'_3,p72,pOO-

————.

Total U. S.

INSTITUTE:

(in 000 kwh.)_

665,251
630,037

Manufacturing

$219,940,000
105,118,000
114,822,000
80,115,000
34,707,000

8,120,000

110,765,000
83,929,000

.

5,713,000'

Retail I—.

97,918,000

——

OUTPUT (U. S. BUREAU OF MINES):
Bituminous-coal and lignite (tons)
Pennsylvania anthracite (tens)
——

BRADSTBEET, INC.

."

.

,

$208,683,000

—

Total liabilities

BUSINESS

569,444
490,066

13
13
13
13
13

COAL

FAILURES

58,257^)00

183

37,042,000

.

Feb.
Feb.
Feb.
Feb.
Feb.

—

Electric output

93,516,000

72

4)2

$18,061,000 i: =$21,785
5.912.000

—.

Retail liabilities ■
Constructlonliabilities'.»J_-._-.__i-_---:--_-.-._

23,614,000

93

r—.5;5fi57,000
16'.;028,b0,d

Commercial service liabilities—-.-_I i=

27,261,000
141,349,000

194

,88

y!

559

174

——

liabilities

Wholesale liabilities

199,895,000

550,426
533,316

502,289

Feb. 8
of cars)—'Feb. 8
ENGINEERING

construction

EDISON ELECTRIC

Manufacturers'

8,894,000

•

■

NEWS-RECORD:
Total tJ. 8. construction—.

—

57,627,000

^Feb.

ENGINEERING CONSTRUCTION —

Federal

21,580,000
117,552,000

—Feb.
. Feb.

......

.'

1)2

114

514

—.—

Total number

14,086,000

198,738,000

204,559,000
23,179.000
123,121,000
57,502,000

208,043,000

Feb.

at

—

ASSOCIATION OF AMERICAN RAILROADS:
Revenue freight loaded (number of cars)
—
Revenue freight received from connections (no.

Private

7,497,000

8,119,000

27,386.000
2,613,000

213

-"96.

number—:——*—

Commercial service

;

transit, In pipe lines—

(bbls.) at.....
Residual fuel oil (bbls.) at

puhlic construction —
State and municipal

7,772,000
26,981,000
2,524,000
13,189,000
7,705,000

7,431,000

—Feb.

at-

Kerosene (bbls.)
Distillate fuel oil

7,548,000
27,040,000
2,486,000
12,543,000

Construction number

—-

gasoline (bbls.)

and unfinished

Finished

6,858.285

117,325,000
26,047,000
2,587,000
12,045,000

Feb.

output (bbls.)
Kerosene output (bbls.)Distillate fuel oil output (bbls.)
Residual fuel oil output (bbls.)—:
Stocks at refineries, bulk terminals, In

Gasoline

203

—-—-—

number
———1-————-—
Retail number ——.■——-—

7,461,215

Year

'

r

Manufacturing number
Wholesale

6,849,985

-

—Feb.

stills—daily average (bbls.).

Crude runs to

6,842,385

Month

FAILURES—DUN & BRADSTREET, A;

BUSINESS

97.8

Previous

Month

i

55.4

-

-

output—dally average (bbls. or

oil and condensate

CIVIL

Ago

that date, or,

on

Year

§1,459,000

..JFeb. 23

gallons each)

42

month ended
Month

*53.5

Feb. 23

moiith available. J Dates

PETROLEUM INSTITUTE:

AMERICAN
Crude

or

production .and other figures for ft,
shown in first column are either for ft,
in cases of quotations, are as of that date;

statistical tabulations cover

or

previous

Latest
Week

:>-v;

m

V

254,7:

•

ywiiypw.

IRON AGE COMPOSITE PRICES:
Finished steel (per lb.).

5.650c

Feb. 11

5.967c

5.967c

5.967c

Feb. 11

$66.42

$66.42

$66.42

$62.90

Feb. 11

$37.33

$36.67

$33.17

$53.33

Feb. 11

24.500c

24.400c

Export refinery at.
(New York) at.
(St. Louis) at.

-Feb. 11

Not Avail.

20.625c

Feb. 11

13.000c

13.000c

13.000c

Feb. 11

12.800c

12.800c

12.800c

15.800c

10.500c

10.500c

10.500c

14.000c

at.

-Feb. 11
Feb. 11

10.000c

10.000c

10.000c

13.500c

Feb. 11

26.000c

26.000c

26.000c

25.000c

92.750c

92.750c

93.375c

101.375c

±

Pig iron (per gross ton).
Scrap steel (per gross ton)—
PRICES

METAL

copper—
Domestic refinery at

>

Lead

(delivered)

(East St. Louis) At—

Zinc

Aluminum (primary pig. 99%) at-.
Straits tin (New York) atMOODY'S BOND PRICES DAILY
U. S. Government Bonds-—

Received

-Feb.11

AVERAGES:

94.48

-Feb. 18

,

26.550c

33.400c

21.725c

31.175c

-Feb. 18

96.07

9o. d2

102 80

102.80

99-. 84

99.36

99.36

96.07

86.78

86.65

84.81

—Feb. 18

92.06

91.62

91.77

98.25

98.09

96.85

Industrials

98.41

97.94

Feb. 18

Group

2.97

2.97

2.99
4.01

4.04

3.58

3.59

3.79

3.79
3.98

!ai

146,516,0

tl

109,610,000

122,138,0

261,578

187,8

-

!m

246,341
•

ol

274,3

-

280,242

VJ:<.

268,047

109,344

•

—

96.248

V

57,0

•

123,5

:*

120,111

131,667

107,015

...

P

272,:

261,923
'
——

ii

£

.■

246,686

112,738

302,749

294,637

E

128,1

221,9

—

31

Dec.

V

Shipped

—.—

—

(1,000-lb. bales)—

Hull Fiber

Stocks

155,611

;k<

b.

.

135,056

730

849

1,007

773

-

,

—

Produced

y:

161,2.

.

.

654

31-.—

Dec.

ai

170,9

177,597

147,499

—y.

Produced

3.98

Aa

4.00

237,267,0

Shipped (tons)
~r—
(running bales)—

3.81

::

113,978,000
133,727,000

...

(tons)'

Produced

-

3.66

3.76

r

192,572.0:

Linters

3.98

3.58

Feb. 18

(tons)

'i'i-r:,
Stocks (tons) Dec. 31

3.24

Feb. 18

—-

-

132,316,000
131,698,000

(tons)

Shipped

89.37

.—Feb. 18

corporate

Aaa

146,271,000 ^ 155,988,0:

107,956,000

Hulls—

Stocks

Feb. 18

lit

203,699,000

—1——

(tons) Dec. 31—X,

Stocks

Produced

97.16

MOODY'S BOND YIELD DAILY AVERAGES:
U 8 Government Bonds—
Average

,

•

96.69

98.25

lblic Utilities

v

127,828.000 ''.178,477

180,635.000

(pounds)

Consumption (pounds) —
Cake and Meal—
v ,,

95.16

Feb. 18

Group

96.23

—Feb. 18

c(

[it
I. *'r

144,856,000

;/■
-

Dec. 31—."—
Produced (pounds) —
—,——14

Stocks

96.38

—Feb. 18

570,

1,233,215

124,341.000

1.—
—..i.—

W

339,(

610,411

•'

542.035

; 1,616.446-

Refined Oil—

99.04

/'

96.38

31___...

(pounds) Dec.
(pounds)

931,617

925,266';

•

•

—

Shipped (pounds)

101.47

,

I

(tons)——

mills

Produced

bv.-d

102.63

—Feb. 18

Stocks

91.00

9„.*7

|rr

.

Stocks.(tons) Dec. 31-.—:——1*
Crude Oil—-' ' .•
■'\

16.000c

•

94.42

94.25

—Feb. 18

corporate

Average

at

-

.

(tons)

Crushed

-

Lead

IZinC

di
Cotton Seed—

f/jM

QUOTATIONS):

A M. J.

(E.

Electrolytic

1,'197

.

Feb. 18

3.99

4.00

A

Feb. 18

4.65

4.66

4.80

4.46

Baa

Feb. 18

4.27

4.30

4.29

4.06

3.86

3.87

3.95

3.96

Stbcks Dec. 31

Feb. 18

3.85

3.86

3.88

3.93

Produced

Feb. 18

—Feb. 18

329.8

397.0

392.2

413.7

Railroad Group
Public Utilities
Industrials

Group-

Group
INDEX.

COMMODITY

MOODY'S

.Feb.

Orders received (tons)—...
Production (tons)

309,914

241,750

264,368

251,516

244,049

275,279

Q<t

402,939

450,170

Percentage

Feb.

83

Unfilled

Feb.

395,797

340,841

INDEX—

OIL, PAINT AND DRUG REPORTER PRICE
AVERAGE

1949

=»

—JFeb. 14

100

TRANSACTIONS

ROUND-LOT

FOR

ACCOUNT

OF

282,539

88

82

of activity.
orders (tons) at end of period

108.67

108.44

108.63

(1,000 pounds)—
——.——*—.——i—..
L
...»

Durable

—

goods

Nondurable

>,

.

,

-

100.9

8hort sales

—

sales

Other

.

goods

w

—

—:

1,628,660

1,296,210

1,476,610

311,060

394,750

194,070

261,270

25

1.096.820

932,940

1,170,390

Durable

1,127,010

1,431,660

Nondurable goods

294,020

316,120

Jan. 25

1,407,280

-—.Jan. 25

395,200

393,670

Other transactions initiated on the floor—
Total

purchases

,

_

-

—

48.800

78,300

24,400

282,650

320,170

194,650

292,450

331,450

398,470

219,050

Total

-

—.——

492,204

Total

46,590

110,650

Credit

605,928

471,415

335,922

521,422

Cash

781,178

750,035

382,512

632,072

Total of

Jan.25

—Jan. 25

sales

Total sales

—Jan. 25

—

DEALERS

LOT

EXCHANGE

AND SPECIALISTS ON
SECURITIES EXCHANGE

—

sales by dealers
Number of shares

Odd-lot

Dollar
Odd-lot

2,474,315
535,110

1,985,398
2,520.508

value

1,209,909

1,388,699

$50,423,753

$59,718,097

35,357

8,917

1,118,409-

975,321

Jan. 25

$40,658,571

$40,765,537

$38,952,023

$47,370,141

249,570

195,840

347,330

..,

.

203,650

.tan

M

r

25

Jan. 25

FOR ACCOUNT OF MEMBER8

STOCK

Y.

195/840

3471330

round-lot

542,870

676,810

323,610

620,170

Less

956,310

.Jan. 25

11,296,480

11,358,970

367,890
10,021,700

.Jan. 25

12,252,790

12,650,090

10,389,590

WHOLESALE
LABOR

PRICES, NEW SERIES

—

(1947-49=100)

—

U.

8.

DEPT.

RYS.

Processed

Feb. 11

626,500

_

118.8

*118.6

118.7

Feb. 11

95.5

94.2

93.6

other

""

"than

farm

~

and"foods"

108.9

108.4

108.9

100.6

99.1

100.7

81.

125.8

*125.8

126.0

Mnn

C1
v.i»V'


half cent

•ne

v

•

^lan" tPrtnie Western Zinc sold on delivered basis at centers where freight from East St. Louis exceeds

31.7

22.7

22.6

6.8

6.8

327.3

*

...

;

* •

*330.3

-

$99,631,473
20,788,586

...

deductions

after

fixed

from

5,030,943

income-

charges

charges-

*

preferred

stock—
....
flx«d charges

Imports

4,446,957
63,664,980

49,046,108
28,454,137

—

OF

-

CENSUS

.

-

.

3.70

3.19

AND
IMPORTS
Month of Nov.

EXPORTS

<000's omitted);
Exports

21,032,027
1,287,586

—

of Income to

STATES

BUREAU
;

taxes

Stock—

common

Ratio

.

99,188,846
68.111,937

appropriations:

on
On

•

115,389,116
84,192,019
4,372,780
79,819,239
49,476,845
43,776,442
•<

—

Income

Dividend

$84,248,246

120,420,059

income

Net income

Federal

125.

^Includes 932,000 barrels of foreign crude runs. §Based on new annual capacity of 140,742,570 tons
.as aS*inst Jan- 1, 1957 basis of 133,459,150 tons. tNumber of orders not reported since introduction of

8.0

*58.4

297

in-

deductions

UNITED
BR

".

income

Income

88.8

Feb. 11

6:

(Interstate Commerce Commission)-

Income available for fixed

104

HI_Feb.il

10:

40.3

8.0

-

_—

Miscellaneous

117.

Feb. 11

"

°°™moditles

III™

235

34.1

50.4

payrrtehts———
contribution for special

33i

*04.2

-34.2

,'

Depreciation (Way & structure & equipment)

foods

Meats

:

railway operating income

Total

10,553,430
11,179,930

•

HI—-HI™™

lSOi
2.323.S:

SELECTED INCOME ITEMS OF U. S. CLASS

*

~*Toup—

commodities
Farm
products

.69.023,

343.4

'

income—

transfer

880;

*100.9

40.3

5

industries

labor

335.f:

-219,17o.;

*239.5

100.0
64.3

surance

OF

All

1,770,570

238.8

industries

employees'

Other

Commodil

*"

1,291,120

99 957

.i

342.8

income

personal

Other

.Jan. 25

•

8§

STATES

"total nohagrlcultural Income.—.

(SHARES)*

sales-

102,487,208

235,171

1,949,844

$2,

COMMERCE)—-MOhth

Month of October:

Other

1

issues-

Personail Interest income and dividends-

TRANSACTIONS

Total sales

bonds™

billions);

Net

Short sales

—__

200,919,287

Proprietors and. rental incomei_

STOCK

sales

listed

of

^

896,064
195,570,176

105,071,743

credit balances

OF

Other

-

Total

free

41,786
324,964
876,175

:

'Government-

2031650

Jan. 25

ROUND-LOT STOCK SALES ON THE N.

249^570

$2,559,177,

$2,549,605
67,824
342,360

borrowings on other. collatera.1

December (in,

Total

...

customers'

Distributing

10,714

913,546

—

AND ROUND-LOT

,

986,035

948,903

21,818
896,036

Round-lot purchases by dealersNumber of shares

EXCHANGE

1,127,326-

917,854

,

accounts—

debit balances...

customers

Wage and salary receipts, total—..;
Commodity producing industries

$66,902,133

—Jan. 25

-

,

sales

$39,504,282

.Jan. 25

by dealers—
sales

Short sales

Other

1,069,228

_Jan. 25

...

shares—Total

of

..

1,3^1,505

1

i

i
1

J-$31,424,0

•

PERSONAL INCOME IN THE UNITED

Total

Jan. 25
-

Round-lot sales
Number

2,395,882

i-

17,159,0
4.0,071,0
•" 7,068.0

>

hand and In banks in U. S

value

Service

orders—Customers' total sales

> '

.

Member borrowings on U. S. Govt.
Member

N. Y. STOCK
COMMISSION:

other sales

Dollar

1,728,572

Jan. 25

short sales——.

on

net

to

of

purchases by dealers (customers' sales)—
of

2,983,145

.Jan. 25

Customers'

extended

(DEPARTMENT

(customers' purchased)—t

Customers'

carrying margin

customers'

Market

411,620

1,984,262

ODD-

value

Number

265,060

1,463,512

$31,090,000

•

2,284,934

2,250,394

*6,988.000

$31,661,000

Market value-of listed shares.—-;

2,682,265
751,670
2,141,475

*9,593,000

6,907,000

."

31,(000's omitted):

firms

460,164

—Jan. 25

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT Of

TOTAL

Member

659,935

purchases

11171

'16,581,000

1^..;

EXCHANGE—

STOCK

Dec.

278,620

Short sales
Other

As of

175,250

transactions for account of members—

round-lot

Total

YORK

Jan. 25

sales

16,333,000

(000's omitted).

t

10"

i

9,426.000
——_

s

i

'
;

'

t

I
1

NEW

600,435

sales

Other

'

^

_

goods

As of Nov. 30

.—Jan. 25

-

O,523'00j

MONEY IN CIRCULATION—TREASURY DEPT.

Jan. 25

11.

n.

»

,

......

*

manufacturing

—Jan. 25

purchases

Short sales

Total

All

332,150

transactions initiated off the floor—

Other

'

39,700

—Jan. 25

—

^sales

'»

Total

—

jan. 25

Short sales
Other

turing industries—

1,428,680

1,349,890
1,744,640

—,—-

—

'7,627,0001

Estimated

-Jan

——

Total sales

•13,350,000

*161.1

(1947-49' Avge.=100)—

manufacturing

jan. 25

,

i

*100.2

158.1

—

jan. 25

purchases

1

*12,719,000
*7,318,000
*5,401,000

-

Total

3

i
12,482,000
7,160,000
5,322,000

Payroll
indexes
(1947-49 Average=100)—
All manufacturing—
—
number of employees in manufac-,

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—

689

<

,

,

(production workers )_•—
!
...
—_____

indexes

Employment
All

1,200

2,364
.1.207

2,908

PAYROLLS—U. 9. DEPT.
LABOR—REVISED SERIES—Month Of

December:

111.05

f

v
'

AND

All manufacturing

MEM¬

OF

——

656

265,863

.Feb.

—...

Shipped

Motes, Grabbots, etc.

EMPLOYMENT

NATIONAL PAPERBOARD ASSOCIATION:

5

20

(874)

The following

•

Vi

Thursday, February

.

—

*

$1,681,000
1,032,000

$1,672,900
•1,144,700

:l0®'g02;44

.J 553,31

2^
60,1

Number 5718

187

Volume

. . .

t:
parently are back at the old stand
and. determined to drive the best

»tin
the

''fupdsr.;:^^

date;
•

1

'

.

Year

J.

J 4

i

AgO *

fX-.

presumably

ers

V

it

172

million

of

debentures,

Wednesday.
,;;rr,
Next in scope is

due

on

;

turned; easier.;/.

times.

'83

The corporate new

issue market

continues .to bump along
the; road none-too-smooth

.!:$82

21,785,000
5,619,000

w,946,000
8,149,()0o
3,780,1)00

The?shift

50,279,000

emphasis
investors, withbit unexpected¬

ly. But now they
settled down once

12,800
■23,500

finding-

in. money

available, a

funds
$52,200

,

//

seemingly caught

turn of events. Even
through the days of abnormally
easy money they maintained that
the latest

With

741,52
922,18
-

667,48

;? ??/">,?'• ?
They did put large amounts into

years.

254;

J. I. Case
; T'

dividend

*92,572,01

55,988,0

237,267,0
146,516,0

122,138,0
1870
274,3

2720

the

$1.75

March

preferred.

Co.

In the new

of

record

1958.

the

at

25 Broad

1958

17,

prospective btfyers -appear/to
playing possum, at the moment
and come up willingly only when
yields are to their; liking.

170,9
161,2!

Debentures

GMAC

•

5;

the 1%
share on
this Com¬

per

of

April

close

of

1958

1,

business

: \.
■
T./. NEWMAN,Secretary.

•

The

1,331

1,234

quarterly
the

S,523i00i

some

the

of

underwriting group,

this'large1 issue

promised

even

to

be

;

In

.

,

..

...

..

addition to

intermediate

COMPANY
at

the

MIAMI, FLORIDA
A

quarterly dividend of 35c per share

Mar. 25, to

the Common
.

..

the

par

Vice

share

ers

March

on

the close of business

on

12,

of record at the

1958, to sharehold¬
close of business on

Fob. 28,1958.
February 17,1958.
r. h. fite

President

on

IImied Umims,

payable

record at
20,

Incorporated

1958.

KENNEDY.
and

President

52nd Consecutive Dividend

Secretary

Board

declared

on

common

or

DIVIDEND
declared

KNOWS NO SEASON!

5%

Preferred

.

.

.

V

254

.

.

254

5% Convertible Preferred

5.40% Convertible Preferred

Mi'waukee. Wis.

UNITED FRUIT

274

e < t

.

7

\A

•')

v

•

5V2% Convertible Preferred

40c

vv

*

,

J

,,

27!/2(l

Common

February 18, 1958

ALDEN L, HART.
President

1, 1958, have been declared at the

Secretary-Treasurer.

REGNER,

D.

.

.

.

fa Ley,

.

..

.

GOUL

vice-pres. & treas.

NATIONAL

February 17, 1958

BATTERIES,

Consecutive
Manufacturers of

of

events

in

the

money

A

per

REGULAR

A

dividends have been
declared by the Board of Directors:

the

per

share on

$4.25 Cumulative Preferred

on

of $0.25 per

quarterly dividend of forty (40)
per share for the first quarter
declared on the com¬
mon stock,
payable March 10, 1958
to stockholders of record at the close
of business on February 26, 1958.
A

quarterly dividend
April 1, 1958 to

Back At Old Game

per

Common

share

Board of

Secretary and Treasurer

Stock,

declared

Boston, Mass., February 10. 1958

by the

Directors

on

January 10, 1958 payable
March 15,

March 4,

on

South Bend, Indiana

on.March 14, 1958.

T. E.

1958 to

stockholders of record

Limited U. S. A. Inc.

Drewrys

stockholders of record at the close
of business

of 50c
on

of 1958 has been

share on the Common

Stock, payable

H.

A.

JEANNERET,
Treasurer

—1-

1958.

DAGGETT

Public Service Electric

PRESIDENT

Secretary and

Paul

?T,

and Gas Company

»

J. W. Reilly, Secretary
NEWARK.N. J.

Portfolio managers for large in¬
stitutional investment outlets ap-

£19,1750

HOME AND

SERVING

DIVIDEND NOTICES

•

'59,022,tj

1958, to share¬

holders of record March 14. 19~>8.

cents

March 14, 1958.

Common Stock—A

has been de -hrcd,

EMERY N. LEONARD

was

1958 to

payable April 1,

of business

DIVIDEND

QUARTERLY

DREWRYS

regular quarterly

$1.0625

share on the capital stock of

payable April 15.

The following

Preferred Stock—A

dividend of seventy-five cents

this Company

Checks will be mailed.
.

Quarterly Dividend

complete line

storage batteries.

Transfer books will not be closed.

"

a

of automotive and industrial

DIVIDEND NOTICE

stockholders of record at the close

market.

the close

record at

following rates per share:"

1958.
G.

stock of

WHERE INDUSTRY

15, to shareholders of record March

a

quarterly dividend of thirty-five cents (35c)
per
share on the capital stock
($3 par
value) of the Corporation, payable March
T5. lor,q. to stockholders of record February

L.

per

the outstanding

capital

before March 31, 1958,

stockholders of

Abilene, Kane.
February 7,1958

Quarterly dividends payable March

has

Directors

Directors

cents

of business March 12, 1958.

UTILITIES COMPANY

of

of

quarterly divi¬
30

the company, payable on

CALIFORNIA-PACIFIC
to

Board

.a

of

share

The

will he mailed.

John Corcoran, •
Vice-President & Secretary

Cumulative

March

on

able

February 28, 1958. Checks

stockholders of record at

company

company,

stockholders of

to

payable

dend

Stock,

gardless

WITH ESSENTIAL BASIC

INDUSTRY

PRODUCTS

REYNOLDS

2,323,81

Atlas
33*

on

Company

declared a quar¬

meeting held today,

a

terly dividend of 30 cents per share on
the Common Stock of the Company, pay¬

The

maturity set for the issue, the fact

return at least for that period re¬

880,i-J

CONSOLIDATION
COAL COMPANY

CORPORATION

dividend of

the

ing the investor protection of his

$2.8554
3201
33501

of

business

BRICCS fir STRATTON

233 investment firms

friends for the debentures, afford¬

$31,424.0

PITTSBURGH "

the Tegular

Series

Stock

1958,

;<

five'years helped make additional

17,159,0
40,0710
•7,0880

of-$1,375

dividend

1,

this

declared

1958,

JOHN A.

that it is non-callable for the first

mil

of

of

The Board of Directors

FLORIDA POWER & LIGHT

to

added

Directors

19,

close

the

Move <•

sprbad out well around the coun-

try.

107,

DIVIDEND NOTICES

the

With

•13,350.000
■7,827,000

been

outstanding

Preferred

reported a good demand
$15(1 million of new 21year debentures of General Motors
Acceptance Corp., put on the mar¬
ket at 98*2 to yield 4.10%.
in

Slocumb & Co. Inc. of San Fran¬

NOTICE

DIVIDEND

itreet, New York 4, N. Y.
of

Board

February

on

Dealers

for
2,831

Coast

cisco.

on

snare

Cents

payable

declared

been

12,

corporate bond mar¬

be
221,9!

Pacific

and

BEVERLY HILLS, Calif.—Mar¬
tin
Blum
is now with
Brush,

DIVIDEND NOTICES

CITY INVESTING COMPANY

ket

128,1

York

Exchanges.

Stock of the

April

28,

57j

123,5

New

Stock

(Special to The Financial Chronicle)

conected with

Mitchum, Jones & Templeton, 650
South Spring Street, members of
the

With Brush, Slocumb

Calif.—Herbert

now

has been declared

/,-,>■

Preferred stock

6Second

pany has
to holders

per

11.375

and

has

But/right now

Edison

LOS ANGELES,
W. Morrison is

LOS ANGELES, Calif.—John H.

Kaufman

fBRIGGS&STRATTON):

that/latter out¬
let is not present in the same di-;
mensions. For the moment equities
are finding more ready acceptance
than'debt issues, it appears, judg¬
ing from the reception accorded
offerings like Gulf States Utilities
preferred and Southern California
:

;

Company

February

Wis.,
of

stock

ment

178,477,0!

;

-

4eht?issues/pMlny^st^

corporate:

570,0!

'2,122,?!

Anthony Polack Opens
Anthony V, Polack is conduct¬
ing a securities
business from
offices at 366 West 29th Street,
New York City.

(Special to The Financial Chronicle)

DIVIDEND NOTICES

(Incorporated)

Racine,
A

Preferred

.purchases, and into the
mortgage field at somewhat better;
rates than Were offered by nhvv,

339,6!

them

of

47

r

-

(Special to The Financial Chronicle)

DIVIDEND NOTICES

1 direct
-

With Mitchum, Jones
■

Merrill Lynch Adds i

?

nicely into that category

was-/worthy of its hire al¬
though tliey weren't able to make
much of a case for a period of

'

all

issues,

seven

capital

$1,663,70

.<

Busy Week Ahead

have , dropping
again. And the)

the last year or eighteen
months, are not taking too kindly

'

-

-

appear to

over

to

^

Pierce,

523 West Sixth

was

*

momentarily off the rose.
vInstitutional buyers
havijig
tasted the blood of liberal yields

$2,217,400

deal.

a

'■

bloom is

$88^00

•

on Tueday, and Southern
England
Telephone's
$30

New

Lynch,

& Beane,

He

formerly with E.
Hutton & Company.

largest being Cleveland Elec¬

at the
moment in the wake of the recent;
flurry of activity as money rates

183

for

F.

Merrill

of

staff

Fenner

Street.

Pennsylvania
Electric Co.'s $29,000,000 of bonds
Portfolio managers
for major
up for bids on Monday. To add
outlets naturally keep a weather,
a bit of European flavor, the City
eye on! the trend of things, espe¬
of Amsterdam,
through bankers
cially unsold inventories in the
here, is slated to market $15 mil¬
hands
of
offering groups. And lion of bonds on
Tuesday.
they can press a hard bargain at

bid

472

•

a

of bonds

that
prospective

the

figuring out how to

eration when

'72

tap, the in¬
relatively

on

tric. Illuminating Co.'s $30 million

buyers';pricing ideas into consid¬
■

"Street-size,"

The major offerings foot up to
total of about $147 million, the

two

issues

new

aware

are

must, take

they

a

to

• necessary

week, investment bank¬

in the last

called

vestment market faces

7-

•

loose two* sizable

turn

er s

J

v,

found

Having

v
•

placing their busy period next week.

bargai impossible in

"."'■i A V

ro

(875)

The Commercial and Financial Chronicle *

i9:J

V
20,

AMERICAN

Corporation

33 Pine Street,

New York 5, N.

Y.

235

EASTERN

CYAN AMID

35

5% Cum. Preferred Stock
and Common Stock

&

The Board

1?

ican

Preferred Dividends
No. 7, 8, 9 and 10

31?

Regular quarterly of 25*
per share, for the year 1958
„

Payable March 15, June 16,
September 15, and December

PREFERRED
The

DIVIDENDS

of Directors of Amer¬

today
declared a quarterly dividend of
eighty-seven and one-half cents
(87tit1! per share on the outstand¬
ing
shares
of
the Company's
3 V2 c/c cumulative Preferred Stock,
Series D, payable April 1, 1958,
to the holders of such stock of
record at the close of business
Cyanamid

Company

COMMON

February
27,
May 26, August 26, and No¬

'Record

vember 26,
•

1958,

respectively

Common Dividend No. 65

Regular quarterly
per

oi

15e

share

payable

Payable March 20, 1958

declared

Treasurer

February 15,1958




ary

cents (40c) per share on
outstanding shares of the
Common Stock of the Company,

1,

1958

24, 1958.
E. H.

250 Stuart St.,

28, 1958. to the
of record
March 3,

Boston 16, Mass.

February 13, 1938

New

York, February 18, 1958.'
i

■

'

r't-

J

»'

Symbol is EEU.

■
,

f-U i!

...

a

and one-half
share on the out¬

'.

m

-

Dividend

Stock

Per Share

4.18% Cumulative Preferred
4.30%

Cumulative Preferred

$1.40 Dividend Preference

.$1.02

.

.

.

1.045

.

.

1.075

..

.35

/.

.45

Cemmen

Stock has been
April 1, 1958, to
of record at the close of
March 11, 1958.

standing Common

before

are

March

stockholders

of

payable
31,

on or

1958

record

to

March

declared, payable
holders

The

Transfer

closed in either case.

by

3, 1958.
F. Milton Ludlow

Secretary

will not be
Checks will be

Books

The Chase Manhattan

Dated, February 12,

New York Stock Exchange.
•"

Class of

4.08% Cumulative Preferred

All dividends

(121/2 <0

cents

ending March

31, 1958:

DIVIDEND

ALLYN DILLARD, Secretary

Our stock is listed on the

KYLE, Secretary

following dividends

for the quarter

dividend of twelve

Bank.

1958.

R. S.

quarter

COMMON
A

business

BIRD, President

declared

ending April 30,
1958, payable May 1,
1958, to
holders of record at the close of
business April 11, 1958.
the

for

clared the

quarterly dividend of

43/4% Series A, has been

mailed

of such stock
at the close of business

Walter G. Clinchy,

u

A

to
shareholders of record Febru¬

Directors of Amer-

the

payable March

Record date February 27, 1958

April

—

regular

DIVIDEND

fifty-nine and three-eighths cents
(59%£) a share on the outstand¬
ing
Cumulative Preferred Stock,

PREFERRED

dividend

forty

holders

regular

A

regular quarterly
of $1.12*4} a share,

STOCK

Cyanamid Company today
a quarterly dividend of

icgjh

CUMULATIVE!

4l/2%

COMMON DIVIDEND
The Board of

—

February 24, 1958.

March 3, 1958.

dates

STOCK

quarterly dividend of 40 cents
a
share, payable March 28,
1958 to shareholders of record

15, 1958

r

Reynolds Metals Building
Richmond 19, Virginia

PREFERRED DIVIDEND

28

•

The Board of Directors has de¬

FUEL

ASSOCIATES

COMPANY

Dividends declared on

35

QUARTERLY DIVIDENDS

COMPANY

AND

103
6!

METALS

GAS

1958

PVBLIC SERVICE
CROSSROADS

OF THE

EAST

The
43

Commercial and Financial

Chronicle

:, Thursday, February

.

(876)

Philip H. Watts, Alex. Brown »
Sons; J. C. Herbert Bryant,
Bryam
& Co., Ralph
S. Riggs

BUSINESS BUZZ
;

Dana &
Ferns &

•

•

•

20,1955

Folger,

Co.; George M.
Ferris Sr'
Co. ; James
Parker Nolan'

Nolan,

-

Capital

sorely
going
to lose perhaps their foremost
champion. Senator Harry Flood
Byrd, 71, is going to retire this
already

States,

lacking in leadership, are

v\; •••'• :

year.
The

Virginian,

v!

on

he would

that

sending mes¬
appealing to him to

reconsider and

personal friends of the Vir¬

are

the

invalid,

an

would

he

that

talk

again. He and his wife plan
the remaining days of
their lives at Berryville, their

of

Because

received

Dominion

Old

Labor Union
.

State, where the state govern¬
ment is operated pretty much
on

his

basis,

pay-as-you-go

a

critics describe the state politi¬

organization as the "Byrd
Certainly the Byrd
lieutenants have long been the

cal

been elected with their backing

the

part outstanding men

most

former

like

Harden and

far

as

Stanley.

is

on

and

expenses

Central

has

distinct from

as

a

labor point of

view."

b i g

the
in

truly ominous,
gone
largely un¬

recognized. and that it cries out
for analysis from a truly public,

to hold down

keep

it

that

conservative

government

"Unions

Wash¬

already

do

many

ington from getting even bigger,

things

the

trade in the product market and

Virginian

has

in the

been

forefront for many years.

which

which

directly

businessmen

•

merely because they
Probable New Chairman

is

There

v

vital

and

place

laws,"

Capitol Hill for the role Senator
Byrd has been playing. The man
who will probably succeed him

"They

as

Chairman of the

nance,

of

Senator

Oklahoma,

person

the

to

„

Senate

Robert
will

S.

not

Fi¬

Kerr
the

be

the mantle of
of the Senate.

assume

watch

dog

The Oklahoman, who made his

said

in

used

Dr.

be.

may

ployers

as

to

f

e n

product

prices.

j
■!

been

agents of

em¬

collusive

respect

in

And

j where producers for
<

have

o 1* c e

with

unions

antitrust

Chamberlain.

and

effect

V agreements

are

do,

to

cases

some rea-

$011 are unable to form

or

main-

tain

a monopoly agreement,
unions have a special incentive

the

market

product

own

unions

"Indirectly

;

have

ready

more

The booklet by

the professor
specific monopoly

refers to some

practices of labor; Among them
is the restriction of output for
the purpose

of controlling mar¬
prices, exclusion from the
product market, direct partici¬
pation in price fixing as well as
organizational and j u r i s d i c-

ket

tional strikes.

&

for Power

Universal Match

union, once formed, nat¬
urally seeks to extend its
power. This, of course, has been
down through the years.
"What

union

is

a

power

if

the

or

from

bargain¬

derived

collective

would

be

removed

were

re¬

effectively controlled

residuum

small;

or

merely

bargaining

but

whether

not, the first step is

analyze correctly the nature

of the powers possessed in order

that

an

intelligent decision
as

& Gas:

them

of

a

may

properly

by society.

Cer¬

decision will

never

be possible as long as all union

Anheusejr Bitsch

activities

r-

are

indiscriminately

lumped together under the

V

pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" own views.]

Exchange Firms Govs.
Meet in Washington
Governors of the Association

Edward Rotan, Rotan, Mosle &
Co., Houston; James H. Scott, Scott j
&

Stringfellow, Richmond; Wick
Shreve, Hayden, Stone & Co,
York; C. Newbold Taylor,
W. H. Newbold's Son & Co., Phil*
delphia; Edward F. Thompson, Jr,
Lamson Bros. & Co., Chicago; I
Emerson Thors, Kuhn, Loeb & Co,

liffe

of

New

Exchange Firms, the trade

Stock

representing
securities

and

,

stockdealers

membership in the New
Exchange, held their
midwinter meeting of the govern-

gen-

Stock

ing

New

February 16-18th in
Business
sessions
held at which partners and

York

Wendell

York; James G. Tremaine
Gude, Winmill & Co., New York;

board

~ *

*

of

current

ment

Robert

J.

president
brook
at

concern

&

the

and

Co., New. York, presided: of
sessions

reception

Keith

Funston,

-

and

,

a

T.

.

C.

of

Smith,

Omaha

a

;

Capital

..

-

J i

Coe, partner in the

;.

M. J. Sabbath Opens

WASHINGTON, D.

Sabbath

formed

of

the

Exchange firm of; Street, N. W. to engage in a secti*.
rities business. M. J. Sabbath is
Association, headed the President. Mr. Sabbath was f01'1*1"

committee
members

on

arrangements. Other

were:

Mark

erly head of M. J.

Auchincloss, Parker & Redpath;
Frank
Stemple, Bache * &
Co.;

TRADING

■\l

A. S.
,.

Sulphur

Carl Marks

,




Mo.

20 BROAD STREET

TEL:

Member Midwest Stoc'x Exchange

&

Co. Inc.

Com.

Mills
Envelope
Engineering

Indian Head

Morgan

f~

National Co.

.

LERNER S

NEW YORK 5, N. Y

HANOVER 2-0050

Investment

'

■

Telephone *'

HUHbard 2-1990

^

CO.

Securities

10 Post Office Square,

GArfield 1-C225

v

^

Flagg Utica

FOREIGN SECURITIES
SPECIALISTS

SCHERCK, RICHTER COMPANY
Louis 2,

Botany Mills
Campbell Co.
Fashion Park

United States

...

320 N. :4th St..

MARKETS

American Cement >.

■

l

Bought—Sold—Quoted

St.

Sabbath Co

Sullivan, Jr.,

Old Ben Coal

•»L 456

Co., Inc. has been
offices at 175' "

Mackall & Coe and local governor

•

Bell Teletype

&

with

New York Stock

Lone Star Steel
Pan American

Company,
Building. >

-

....

„

&

Polian

National Bank

G

the

Exchange, spoke

Living Wage."

William

at

dinner.

and

president

"The Risk Taker—His

Needs

Chronicle)

Association
OMAHA,
Neb. —Kenneth A.
partner in Esta- Nelson has been added to the staff j

Lewis,

New York Stock
„

Smith, Polian Adds

invest¬

CSpecial to The Financial

business

formal

on

the

to

fraternity.

Northwest Production-

*

Dean Witter

Witter,

&

Koehring Co.
s/'v"-*

W.

Co., San Francisco; Lloyd C,
were
Young, Lester, Ryons & Co., Los
officers of more than 30 firms Angeles,
prominent in the securities busi¬
ness
discussed important matters
Washington.

/.Delhi-Taylor
,.

Chapelle, Lee

Detroit.

may

to how much, and

sanctioned

bargain¬

'

[This column is intended to refleet the "behind the scene" inter-

be found that

may

accretions

the

all

moved

to

It

per se.

of

accretions

from collective

power

ing

clear picture of
is to disentangle

the

analytically

the

said

needed,"

"for

1

i Olin Oil

La

McKenna
Lynch, Jr.,
Moore, Leonard & Lynch, Pitts¬
burgh;
Joseph
A.
Martin, Jr.,
Gaines & Company, New York;
Michael
W.
McCarthy,: Merrill
Lynch, Pierce, Fenner & Beane, i
New York; • Ludlow F. North,:
Robert W. Baird & Co., Milwau-J
kee; Blancke Noyes, Hemphill;;
Noyes & Co., New York; William
C. Roney, Wm. C. Roney & Co.,

holding

points out that a

labor

author,

misleading

'collective

of
>

organization

author

The

he

Gas *

rubric

brokers
The Quest

tainly such

It* *V

al¬

may

influence 011
prices

costs and thus
than do businessmen."
raising

>

and completely

era!

ing'."

which,

C

their

for

ends.

be reached

Colorado Oil

de

Higginson Corporation, New York;
Brittin C. Eustis, Spencer Trask &
Co., New York; Herbert S. Hall,
Morgan Stanley & Co., New York;
Henry Hornblower, II, Hornblower
& Weeks, Boston; E. Jansen
Hunt,
White, Weld & Co., New York;
Charles

in

exercise monopoly power

to

restrain

cannot

from the

exempt

on

a

~~

labor has become

95% Of the Re¬
Chpitol Hill. When

to trying

comes

preservation of free in¬

stitutions the power position of

a

more

for anyone concerned

are that
with the

probably

publicans
fit

i

;

"Democrat,"
party labels are con¬

cerned, he
than

Tuck,

governors

Although he is
as

for

and

competent,

points out that the

position of American labor has
changed rapidly the past quar¬
ter of a century, so much so that
most people do not fully com¬
prehend what has happened. He
declares
that the "plain
facts

political force in Vir- ;
ginia, but the officials who have
been

was

j ciation, Inc., a non-partisan re| search organization with head| quarters in Washington.

dominant

have

Analysis of

Power," which

The author

hypnotist!"

have
booklet on

published and distributed by
j the American Enterprise Asso-

Machine."

a

was

Congress

48-page

a

Economic

"The

in- j

Senator's

the

the

in

of

Members

home, where the Senator oper¬
a large apple orchard.

ates

he

laws like business.

trust

Securities Salesman

"I understand before he became a

placed under the anti¬

should be

to spend

fluence

who feel that labor unions,
good of the country,

the

for

run

Con¬

of

members

among

gress

not

TiW

&

Richard

there is more and more private

ago

years

th#

Foste?

Co.,
New YorkCharles E. Ames,
Kean, Taylor &
Co., New York; John D. Baker Jr
Reynolds & Co., New York'' H
Lawrence
Bogert, Jr., Eastman
Dillon, Union Securities & Co
New York; John D.
Burge Bali'
Burge & Kraus, Cleveland; Edw'
N. Carpenter, Jesup &
Lamont'
New York; Henry I.
Cobb, Jr.,De
Coppet & Doremus, New York*
Henry M. Cook, Newhard, Cook &
Co., St. Louis; Charles P. Cooley
Jr., Cooley & Company, Hartford!

It is for this reason that

to stay.

Senator Byrd
said he promised his wife, now
Six

v

•

corporations, are here

business

said there is no chance
Virginian reconsidering,

ginian
<of

Perhaps few students of gov¬
dispute a con¬
tention that labor unions, like

ernment would

in the Senate who r

ever, persons

the

and

The,Labor Issue

again. How¬

run

Virginia

in

Nation.".

tion this year, are
sages

all

ernment

Scott

Hetherington, II,

Good body

interest in public affairs. I
do all I can for good gov¬

will

seek reelec¬

not

James A.

good citizens," said
Byrd's retirement an¬
nouncement, "I will never lose

announcement

Byrd's

Senator

;,

Senator

my

attending

David

were

Pershing & Co., New York
Harry C. Piper, Jr., V. P., pjD '
Jaffray & Hop wood, Minneapolis-'

their control is not in

"Like

!

V. P.,

this,

from

appears

governors

meeting

re¬

Orvt

Co.; Leo Sade, Sade
.

Other

great jeopardy.

any

parts of the
the heels of

all

States,

United

It

Quarles,

Brothers &

Co.

elec¬

after the November

distance

12, 1933.

from

People

.

Co.; Francis C. Huntpr'
Lynch, Pierce, Fenner £
Beane; Charles B.
Merrill

of the Demo¬

tion.

guished families, has been the
"watch dog" of the United States
Treasury for two decades. He
has been a member of the Sen¬
ate since Feb.

Senate

the

in control

crats

distin¬

most

America's

of

one

- = •.

if

Committee
mains

member of

a

Laidlaw &

natural

in the oil and

industry, has a political
philosophy markedly different
from that
of his Virginia
counterpart.
He
will become
Chairman of the Senate Finance
gas.,

Conservative
United

jj®'

Harmer
Reeside, Hirsch & rv'
Joseph P. Kreeger,
Jones, KreefJ
&
Hewitt; Homer C. Bassford

millions

WASHINGTON, D. C. — The
forces
in the

F.

able, Harris, Upham & Co.- rS
H. Menzel, Hemphill,
Noyes* r

Behind-the-Scene Interpretation*
from th* Nation's

£

Fleming-W

Hit>bs_& Co. Inc.; Edwin

Boston 9.^