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ESTABLISHED 1839
Th a
an
d
Financial
fip
Volume 183
Rag. U. 8. Pat. Office
r
M/cHiuan
Number 5510
ELQ
New York
2
7, N. Y., Thursday, February 23, 1956
Price 40 Cents
Copy
a
3-1355"
EDITORIAL
Overseas Markets in 1956
2gy«m
As' We SeeTlt
,
,
interesting and significant—it would also
be highly amusing were the matter not so serious
of
leading markets and antici¬
(1) record high 1956 U. S. overseas commercial
trade; (2) increased U. S. imports providing larger
foreign dollar earnings, keeping U. S. exporter profits
on 1955
par; (3) St. Lawrence Seaway not cutting into
opinion and
;
ernment
*
course,
\
1
*
ought to be doing for their clients. Of
the farmer does not like to be told by
Uncle Sam how much he
may plant to this, that
or the other crop, or what other things he may
do in certain particulars. He is inclined to resent
such controls
mers
there
even
when he is paid to submit to
are
some
satisfaction be it noted,
among the professional agrarians
who understand that it
and oil
pile-up unwanted surpluses. When studied
against this background, it soon becomes evident
that
spite of housing-auto decline, and finds.
by: (1) inventory rebuilding;
(2) increased plant-equipment expenditures; (3) in¬
creased Federal, state and local budgets; (4) long-range
currency
of remedies, in¬
being practiced and those
ing the
abroad; and (5) consumer spending rate
possibly higher end of year level. Problems
resulting from full employment are described as: trying
to maintain it; inflationary trend, and the inconvenient
effect of monetary and fiscal credit
tightening policies.
at
goods.
Overseas commercial trade of American
cluding both those now
being urged upon Congress, offers any real solution to the problems
by which the farmers of the
country are faced.
economic aid
materials, producers goods, farm
equipment, and decreases in autos and con¬
raw
sumer
of the current crops
none
current level in
the economy supported
in 1956 than last year,
compared with 47 in
(7)
sales increase in
is not wise to continue
to
coming
will
year
be
the
industry dur¬
greatest
Chiefly because of
an
I
record.
on
expected
same
and
shall begin
economic
3%
this discussion by stating that from an
point of view at least we know the answer
increase in U. S. imported
goods, the
combined total of non-military ex¬
to
the age-old
will
approach
the matter seems to be that
slowly,
painfully and expensively, the situation is tending to cure itself. It should not be so slow and
certainly ought not to be so expensive to the coun¬
try as a whole, but apparently the natural forces
of economics are
slowly having their way. They
would very likely in the end have their
way with
$25.9 billion. Commercial
promise to maintain the
shipments
philosophic question,
high is up?" The economy is
operating close to maximum
capacity, it cannot go much higher.
extremely
It is true that the theoretical capac¬
less pain even to the victims were
government
and the soi-disant friends of the farmer
$11.6 billion.
ports
.
The truth of
■t
watching indicative investment trends to help
determine possible turning point in industrial activity."
Mr. Coleman expects total business in 1956 will equal.
as
1955;
devaluation in France, Turkey, Pakis¬
tan, Philippines, Uruguay, Argentina and Brazil. Sees
and
And, with deep
Bank economist questions whether rate of growth will
utilize expanding population and productivity and sug¬
gests
predicted; (4) N. Y.'s loss of
first place without large scale
improved maritime facili¬
ties; (5) increased West German competition in Latin
America; (6) of 50 countries, 33 will be better custo¬
them.
;
N. Y. Harbor trade
,
J
Economist, Mercantile Trust Co., St. Louis, Mo.
:
pates:
among the spokesmen
for the farmers of the nation about what the
gov-
Prosperity
By GEORGE W. COLEMAN*
Trade authority analyzes 50
the uncertainties of mind
;
Stand
Editor, McGraw-Hill American Letter
Economist, McGraw-Hill International Corporation
It is
—to take note of the differences
How Long Can We
By WALTER H. DIAMOND*
base.
on
Actual
sales
Walter H. Diamond
That
will
ity might be slightly higher but it
involve the use of high cost
machinery, inefficient
labor, and
would
sell
a
to
climb
for
postwar business,
volume
be'only
you
expensive
most
nual
than
more
of
limited
of the sharpest jumps in their
will 1956 go down in history as a
one
so
address
by Mr. Diamond
York, New York City, Feb.
at
the
7,
on
Export
Managers Club
al¬
can
statistically. Gross
is
at
now
an
an¬
rate
year.
just below $400 billion a
Per capita income is $1,700 per
Total employment is
more
64
duction
George W. Coleman
of
the
million
and
industrial pro¬
in the latest month is
1947-49
144%
Corporate
average.
I
profits
are
approaching
all-time
records and unemployment is only moderately above ;the
Even the stock market closed at an all-
all-time low.
Continued
37
page
1956.
"Up"
processes.
defined
Product
than
overseas
higher
gain
around
$150
to
be
National
can
slightly
Continued
•An
New
so
1954
hand,
year.
dollar
will
other
peak of
new
the
over
the
While 1955 will be remembered by most Ameri¬
exporters
can
rise
on
in 1956 that last year, with the
probably
million.
12%
continue
count
22
page
1955.
businessmen
Imports,
will
only such ameliorating steps, if any,
as humanitarianism dictated. Such a
doctrine, of
course, finds no favor with the politicians. It finds
less favor with the great rank and file of the
on
S.
abroad—a
with
Continued
U.
now
nearly $14.3 billion worth of goods
step out of the way and let nature take its
course
imports
healthy rate reached in
means
generally
to
and
"How
address
•An
of
ciation
of
St.
by Mr. Coleman before
Louis, St. Louis, Mo.
the
Sales
on
page
Executive
39
Asso¬
PICTURES IN THIS ISSUE
Dinner
DEALERS
of
the Boston
—
Candid shots taken on the occasion of the 32nd Annual
Securities Traders Association at the Parker House, Feb. 10, appear
on
pages
23-30 inclusive.
State, Municipal
in
U. S.
Government,
State and
and
Municipal
JUPITER
Securities
An
telephone:
HAnover 2-3700
OILS, Ltd.
STATE
and
MUNICIPAL
—#—
interesting low-priced
speculation in Texas
CHEMICAL
Bulletin
NEW
oil.
BONDS
J. R. WlLLISTON & CO.
BANK
(ITAIUIHID
MEMBERS
department
30 BROAD
ANO
ST., N.Y.
115
OTHER
NEW
STOCK
YORK
AND
I
•••
STOCK
DRUG INDUSTRY"
Beach
COMMODITY
—
ON
of new york
CXCHANOES
Bond
Bye, N. Y.
Members New York Stock Exchange
120
Dept. Teletypes NY 1-708
ESTABLISHED
1832
Members
County and
American
Exchange
CANADIAN
COMPANY
STREET
On
DIRECT
WIRES TO
•
PERTH AMBOY
Price 98.80
to
Company
"A"
1, 1965
yield 3.40%
Analysis
our
upon
Unlisted
request to
Trading Dept.
DEPARTMENT
Dominion Securities
MONTREAL AND TORONTO
Goodbody
115 BROADWAY
NEW YORK
Debentures
Payable in United States dollars
Canadian Exchanges At Regular Rates
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lA %
Due October
All
&
!
Co.
1 NORTH LA SALLE ST.
CHICAGO
Associate
Member
of
American
IRA HAUPT & CO.
Members Hew
6 rp oration
and
Stock
40
Exchange Place, New York 5, N. Y.
Tel. WHitehall 4-8161
Tele. NY
1-702-3
other
111
Exchange
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Commission Orders
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To
t. l.WATSON &CO.
THE
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the first national city bank
EXCHANOC
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ARE NOW AVAILABLE
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A continuous forum in which, each
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And Fast Executions
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Try "HANSEATIC"
they to be regarded,
•re
can provide your custom¬
with prompter service when
ask
you
our
large trading depart¬
The
I
of
that recommendation
"uranium"
a
corporation
rather
company
as
a
than
speculation will bring cries
PHILADELPHIA
Private
make
it
of
the
was
in
half
iiugn
from
million
SCRIP
fnes
over
barrels
oil
of
!"£,L
hniri
nmnprtv
not
just
much
so
and
"moose
pasture."
Members
uranium
a
Grants
BROADWAY, NEW YORK B
2-7815
body in
ore
of New
area
the
Mexico
is
unquestionably
one
largest in the country.
that
of
the
At
the
present time estimates vary from
„
of
„
,,
,
,
50% interest, an
agreement between the respective
a
Boards has been reached
American Furniture
Bassett Furniture Industries
Camp Manufacturing
will
be
sought
of
share
the
of
the
KAUtK, I AY Lull
Ot
i
l»Uv!nC.
Lynchburg, Va.
LD 39
TWX LY 77
Pinon,
for
It
Sabre-Pinon
each, share
of
share
one
each
two
that
of
Sabre-
shares
of
to
both
uranium
a
mining know-how and milling
a
tentative agree¬
has
ment
been
American
wherein
Associated Transport
the
build
mill.
Sabre
STeeneomdComptmL)
37 Wall St., N. Y.
Metal
American
(4)
sure
with
is the
tion
writer's
that
this
the
*ecemmended
the
1929
Tel. HAnover 2-4850
is
J"
New York
such
as
American
profit potentialjn combin¬
of
energy
WALL
NEW YORK
STREET
5, N.
Y.
Raw
Refined
uranium
t
in
entire
mainly
of
its
potential
the
growth
in
television
nuclear
broadcasting.
A
N. Leonard Jarvis
Assuming that a permit is re¬
ceived, the tentative agreement
year
UPX
ago
had
theatres
639
and
between Sabre-Pinon
Corporation • currently is operating 625 with its
and the American Metal
Company divestiture program calling for
thence becomes effective, Ameri- about 30 additional theatres to be
can
Metal Company will furnish sold.
Earnings in the theatre divithe equity capital for the
consion are believed to have been
and
of
the
insurance
mill
and
companies
banks
somewhat
disappointing
in
Sep-
Liquid
Exports—I m ports—Fut ures
tember up to about the middle of
furnish the balance of the financ—
will
December, but since then business
has been doing well. The outlook
ing. For this, the American Metal
Company shall receive 25% of the
common
stock of the Sabre-Pinon
Corporation,
DIgby 4-2727
ment
agree
Contract
to
until
Manage1962,. and
a
have representation on the Sabre-
Pinon board of directors. Uranium
in
this respect
improved
1956 has been
considerably
anticipated
by
for
various
schedules
motion
of
with
the
releases
picture
pro-
and
"War
CAROLINA
F. W.-
and
CRAIGIE&CO.
•
RICHMOND, VIRGINIA
likely
are
Sell
is
Twentieth-Century Fox for
ex-
i
83 & 84
Telephone 3-9137
already do¬
with
"The
is
expected
Spirit of St.
Established
"Miracle
and
Members
New
is
Cornel
and
Richard
W i d
Chandler
Bill
Stock
Exchange
Stock
Exchange
Cotton
Exchange
York
Commodity
Chicago
New
Exchange,
Board
Orleans
and
from
m a r
-
New
expected
Barchers
York
American
in the Rain."'
Pictures
1856
H. Hentz & Co.
"The
Lane
with Mario
of
Cotton
other
Inc.
Trade
Exchange
exchanges
N. Y. Cotton Exchange
Bldg.
NEW YORK 4, N. Y.
k,
i.
Chicago
I
Miami Beach
Detroit
•
•
Pittsburgh
•
Coral Gablee
•
Hollywood, Fla.
Beverly Hills, OaL
Geneva, Switzerland
..
Amsterdam, Holland
Robinson."
the
and
"Life
Broadcasting
ni
20.
are
Broadcasting
During the day time
the
HO""
,
evening hours
American
has sold
there
.
.
Of the 21 prime
'Weekly,
of
five
sored hours of "The
weekly spon¬
Mickey Mouse
£
25
W
BOLVJ
irgri
-Zo
Ifvl
rr»
Club," presented 5:00 p.m.-6:00
p.m. Monday through Friday. This
top day time program is rated at
least twice
tive
shows.
as
high
as
Recently ABC started
work basis
.
saving^
its competi¬
-
a
on
a
net¬
series of 100 feature
..
r.^8 Jnciu ,,n^ Curtain Up ' and
J Ye;.
a0 obtained from
Arthur Rank. Sponsorship is
n/)w being arranged. Many
new
s]lcnys are being planned for the
tT11^.,;
season, including
^0"n Cmbs, a top TV producer of
dramatic shows, who is expected
P10^*106 26-30 one and one-half
nour shows, including six in coJ,J8ra.nJ! ^7
TVea*r,e
TV Network is believed
*T
Over-the-Counter
Quotation Services
for 42 Years
National Quotation Bursal
Incorporated
Established
*
have had net billings of around
ducers.
v
MUNICIPAL BONDS
theatres.
-Jeff-
thp
>
NORTH and SOUTH
Kelly
"Away All Boats," a naval war
picture with Jeff Chandler (which
could gross $5 million on a domes¬
tic basis), "Pillar in the Sky" with
n
the
nf
because
production, and
the
c
group,
picture.
struction
SUGAR
r
p
hit
Mitchell" and
bet- :
than
Bankers
v
Profane"
and
and
Reed
fact, it has
ter
70 Branches
VIRGINIA—WEST VIRGINIA
to
Germany, "Backlash" with Donna
Theatres
I
1897
—
Investment
Since 1932 Specialists in
*
ount
exception.
Tokyo
&
Broadway,N.Y.6 COrtlandt 7-5680
Story" with Steve Allen, "Never
Say Goodbye" starring Rock Hud¬
should bean
of
111
bring out "The Benny Goodman
son
company
a r a m
big
a
Universal
to
BroadcastingP
is
Grace
U'l
'
follow
Lanza
City
a
Office
Brokers
With
"Gone
As she
Sea,"
"Bad
Seed,"
Ranger,"' "Serenade"
picture shares, have
ing mining and milling operations
assures
Sabre's
growth from a
factor
Established
Home
Jimmy Stewart, "The
"Pajama Game," "Damn
Y a n k e e,"
"Moby
Dick"
with
Gregory Peck, "Old Man of the
JARVIS
to be that
write
Securities Co., Ltd. ;
Giant,"
Broadcasting-Paramount
seems
or
Yamaichi
"Bhowani
Louis" with
been under considerable pressure,
but it
since
Sinatra.
the
"Billy
to
Theatres, Inc. (UPX)
The motion
economy.
information
ing well with "Helen of Troy" and
Members: New York Stock Exchange
Amarican
hit
Warner Brothers
Partner, Hayden Stone & Co.,
>
fill
to
Columbia.
-
current
Call
Ava
aforementioned
"Proud
Carolina,
Delaware,
Maryland,
Nevada,
New
Jersey,
Arizona,
Virginia,
and
the
District
of
Metal
in
For
years
a
too" is
in Texas, Tennessee, Utah, New
Mexico,
Colorado,
New
York,
Massachusetts, Wisconsin,' ;South
LEONARD
improved Japanese
Taylor
.Peace, "The Ten C o m m a n d merits,'* "Anything Goes ' and
^
develop¬
leader
has
.
Sabre Uranium Corporation is
unlisted. The isoue is quail led
N.
practically
at
be stirring due
to
appear
Paramount Pictures' "Rose Tat--
.
,
a
Granger,
with
releases.
gorjes
h
'
Wind," "Designing Woman,"
the
for individuals and
ore
into
it
to
Princess, much
free
publicity may naturally accrue to
for
pressure
speculation
which
Robert
with
Stewart
weathered the
The
in
office
it is being
and
body, and is fur¬
compiling the necessary data
a milling permit from the
Atomic Energy Commission.
a
LAMB0RN & CO., Inc.
Hunt"
become
investment trusts of growth cate-
the
personnel
on
cities
and Frank
recoramenda-
security
^rowth purposes
remaining
stationary levels for three
now
in which Grace Kelly joins with
Jimmy Stewart and Cyd Charisse,
and "High Society," which may be
her last picture, with Bing Crosby
field.
ergy
branch offices
our
STOCKS
after
well
box
research,
other
to
could be MGM's biggest potential
Company
exploration of its promproperties, and expansion
chemistry,
and
phases in the nuclear en¬
into
La.-Birmingham, Ala.
JAPAN ESE
its
The
time, the
Company is
Pinon
and
with
Gardner,
"Gaby" starring Leslie Caron and
John Kerr and three hits starring
Grace Kelly. The first with co-
of
ising
Ltd.,
extraction
Pictures
released. It will follow with
Junction"
Impressive earnings to inimportant exploitation in the
form
-
NY 1-1557
Mobile, Ala.
Direct wires
other promising hits such as, "The
highly tal~
conservatlveness and
ented
ther
field
99
New Orleans,
Suit"
exceptionally
done
various
Last
The aggressive and youth-
Exchange
Exchange,
.
Columbia
and
to seek
ESTABLISHED
Fiannel
"Picnic," "The Harder They Fall"
with Humphrey Bogart and "Tne
in
:V
Stock
Stock
w
®.
been
continuity of management by
Metal Company.
present
Metal
ment of the
Riverside Cement B
sizable
the
At
working
Corp.
with
Company,
American
a
American
E. J. Korvette
reached
Metal
Company will furnish the equity
capital necessary to do the mining
and
Commonwealth Oil
Norbute
Grey
ful thinkin& of the Sabre-Pinon stars Alec Guinness and Louis JorCorPoratjon board' as ^.e" as(tbe dan' entitled, "The Swan," which
profits from this tremendous ore
body. In order to insure compe¬
tent
of
merger
York
look promising.
already
American
(3)
would be desirable to seek further
management,
Trading Markets
and
the
mill
apparent
was
companies
March.
The
will be one
new
for
and
Pinon
in
merger
Corporation
Sabre.
Life Insurance Co. of Va.
concern-
ing the merger of the two compar.ies, and stockholder approval
basis
Commonwealth Natural Gas
mviAnoAn
.
Because of the tremendous si2;e
the ore body, of wh.cn Pinon
Uranium holds
Trading Interest In
J
the
MGM's "I'll Cry Tomorrow" has
(2) The outstanding capabilities
It
4,000,000 tons to 6,000,000 tons.
PTnsnrn
in
Man
to be hits.
board members.
Mid-year 1955, Sabre, and sub¬
sequently Pinon Uranium Com¬
pany through a farmout, encoun¬
tered
Exchange
Exchange
the
United States today.
one
carefu?l^ se?tcted
were
Through
American
HAnover 2-0700
ample is scheduled to release "The
Eddie Ducnin Story" are expected
tion, an ownership of one of the
largest known ore bodies in the
Bradford
sufficient funds
nraninm
ik
•
an
into Sabre-Pinon Corpora-
Sabre
The
a
summarize—
(1)
uranium
issues.
and
McDonnell &fo.
REctor
exex¬
other branches of
energy
beyond milling,
growth potential for the
following reasons:
unique among
were
TEL.
and
nro
New
II Rider St, New Yiit •, It Y.
unusual
reserves to assure
Since 1917
ISO
known
into
Sabre offers its stockholders
VMr„
Stock
through the
To
for uranium exploration for many
Stock
Members
Members
';-V
re¬
several times its current value.
picture
most
Specialists in
York
Hayden,
York City.
New
,
nuclear
1954, with an
adequate income
New
(Page 2)
Steiner, Rouse & Co!
Partner,
Co.,
few
a
nf
rpsprvps
reserves
com¬
company
American
&
pansion
that
Principal Cities
&
Jarvis,
Stone
,
old—Quoted
Para¬
-
Theatres, Inc.—N. Leon-
are
formed
RIGHTS
be
prising the
SAN FRANCISCO
•
ard
-
Sabre
Exchange
CHICAGO
Wires to
mount
should
field;
quite
Member
•
B ought—S
Broadcasting
can
^
value
through further explora^hcMonroe' Arias tas^'"
tion, development of
semi-proven*^ tolrf^Bergman' all of W*llCa
lich
gman, ail OI
of known ore, and
factors
Teletype NY 1-40
EOSTON
Dallas,
Co.,
however,
120 Broadway, New York 5
WOrth 4-2300
Securities
(Page 2)
American
plant
will
tired by 1962 and that
Louisiana Securities
—
there
1920
Stock
entire
Corporation
tax
horror
ment
Corporation
American
the
so
indebtedness
pany's
a
of
New York Hanseatic
Associate
Uranium
western
accelerated
an
Alabama &
Hugh Bradford, Partner, South¬
to make
definite statement regarding
the earnings per share, I believe
it is safe to say that all the com¬
from many in
the invest¬
Established
Sabre
nor
any
rank
Ilanseatic?
try
be,
to
be written off by 1962.
While it is premature
Corporation
sure
growth
time YOU need faster
why not
am
have
write-off
Dallas, Texas
Sabre Uranium
than 400 different issues.
next
service
mills
Partner, Southwestern Securities Co.,
specialists in over-the-counter
securities, we furnish hanks,
brokers and dealers throughout
the country with primary markets
more
particular security*
Texas.
As
in
a
intended
not
are
Week's
Participants and
Their Selections
offer to sell the securities discussed.)
as an
HUGH BRADFORD
for assistance.
ment
for favoring
reasons
(The articles contained in this forum
You
ers
This
Forum
Thursday, February 23, 1956
Continued,
46 Front Street
CHICAGO
on
page
8
1912
New York 4, N.
Y.
SAN FRANCISCO
Volume 183
Number 5510
...
The Commercial and Financial Chronicle
(939)
The SEC and Financing
Oi Small Business
Latest SEC release
INDEX
Articles and News
How Long Can We Stand
proposed Reg "A" and Reg "D" issues
unrealistic and would injure small business. Commission seen
using its rule-making power to emasculate Congressional Acts.
These
Overseas Markets in 1956—Walter
H. Diamond
3555
Exchange
issued
on
'
regulations
July 18, 1955 the
Commission
"Notice
gave
—John
of
Newer
On Feb.
An
r
persons
given until-Aug.. 15,
were
cash—for
R.
Silverman
Optimistic
Look
Ahead:
Our
7
National Economy
O'Leary
10
11
Circular
12
Current Status of Legislation
Covering Stock Gifts to Minors
—Keith Funston
:
.
,
•
;
some
in
24
some
release
voluminous, being composed of
pages. We will attempt to analyze the highlights
of its additions, omissions, and
changes.
'v
The Commission has announced
to be the
cable
*'
.V"'.;
;
■*
*
:
*
The SEC and Financing of Small Business
(Editorial)_L
3
To
accountants.
saddled
this
small
on
addedT
business,
we
burden, v which would
see no useful purpose,
/■%
*•
.As We See It
be
n
'"•"•'•w
As it is, in a $300,000
offering the issuer as a. ruleonly in the neighborhood of $200,000. All of these,
underwritings, being speculations, are contracted to be sold-
Regular Features
•
'
Bookshelf,
usually receives
20% to 25% plus $20,000 to $25,000 for
:Y
r"
': ■'
Dealer-Broker Investment Recommendations
8
From Washington Ahead of the
News—Carlisle Bargeron
These
as
bonus.
a
warrants
this
..
r
.
stock,
the
be,
enables the underwriter to speculate with the public
stockholders, and it is here that the profit lies when a
speculative issue becomes successful.
or
as
case
may
Underwriters of small issues will tell you
that there
profit in the commissions set-up in an underwriting
agreement in view of their overhead and pay to the sales
force. And salesmen, it must be remembered, will not
wait to be paid, they want their commission as the secu¬
rities are sold by them.
no
With
the
deem
above usual
and
Company
utterly unwise and inexpedient to add the
additional charge for certification by independent public
accountants
of
financial statements
dishonest
one
will
issuer
will not be
included in
offering
its
earlier
willfully deceive.
hindered by the proposal.
release
The
SEG
the
had
the
Reporter's
to
bffered
be
under
this
regulation
made eligible for offering in the
shall
be
qualified
or
State
or
Province
in which
poses
to
Public
Utility
the
issuer, conducts
or
pro¬
Security
.
and
The State of Trade
on
page
and
specialized in
PREFERRED STOCKS
25
B;
Park
Spencer Trask & Co.
Members New York Stock Exchange
25
BROAD
Albany
•
Nashville
Boston
•
TELETYPE N. Y. 1-5
•
•
Chicago
Schenectady
•
•
Glens Falla
Worcester
D.
WILLIAM
ST., NEW YORK 4, N. Y.
TELEPHONE IIAnover 24300
Weekly
to
Drapers' Gardens, London,
land, c/o Edwards Ac Smith.
Other
Chicago
hews,
bank
HI.
135
South
clearings,
1942,
Pan-American
Union,
Dominion
Canada,
of
Other
Bank
and
St.,
(Telephone STate 2-0613);
of March 8, 1879.
per
made
$63.00
per
year;
per
year.
Record
of
the
New
York
in
BROADWAY, NEW YORK B
WHitehall
-
3-3960
Teletype NY 1-4040 &
—
Monthly,
fluctuations
funds.
INCORPORATED
39
year.
-
(Foreign postage extra.)
account
of
In
request
of
Direct
PHILADELPHIA
In
exchange, remittances for for¬
eign subscriptions and advertisements must
b«
on
W!* V. FRANKEL & CO.
8.
Publications
Quotation
$40.00 per year.
rate
Prospects
Rates
$60.00
Countries, $67.00
Note—On
Salle
Sulphur
Diners' Club*
Eng¬
Subscriptions In United States, U.
Possessions, Territories and Members
the
La
C.
Gulf-Sulphur
second-class matter Febru¬
at
the post office at New
York, N. Y., under the Act
Other
jcity news, etc.).
Offices:
3,
25,
as
Subscription
SEIBERT, President
corporation
and
ary
9576
Every Thursday (general news and ad¬
vertising Issue) and every Monday (com¬
plete statistical issue — market quotation
state
E.
by William B. Dana
Company
Thursday, February 23, 1956
records,
Mexican
Copyright 1956
Reentered
SEIBERT, Editor & Publisher
DANA
Los Angelos
Pan American Sulphur
Gulf
1
COMPANY, Publisheri
2-9570
to
Revlon*
I
Place, New York 7, N. Y.
REctor
HERBERT
'
*
CHRONICLE
DANA
•
5
Reg. U. 8. Patent Office
WILLIAM
Chicago
Vitro Corp.
this week.
COMMERCIAL and
FINANCIAL
& 1-4844
Lithium Corp. of
America
,
52
31
The
For many years we
•
:
Exchange PI., N. Yi
2
"
available
Twice
.
16
Industry
■
Published
more-
mi
22
You—By Wallace Streete
•
not
40
Direct Wires
46
Washington and You
Column
in
securities'
42
Offerings
Salesman's Corner
.
;
f
34
Securities Now in Registration,,
.
trading markets
Teletype NY 1-1825
33
Securities
Securities
Request
over-the-counter
HA 2-0270
Securities
conduct its principal business operations and
Continued
350
Philadelphia
Railroad
*
have
18
48
The Security I Like Best
securities
maintain
on
Singer, Bean
&
Mackie, inc.
5
Report
following
provision:
"The
May
_______
Our
;
Mining Corp.]
20
Our Reporter on Governments.,.
Prospective
not
We
8
Wilfred
Earth
*Circular
than
The Market
In
L
Observations—A.
Leaseholds, Inc.i
Strategic Materials Corp.
40
Notes
s
Pacific Uranium
Rare
50
Funds
News About Banks and Bankers
speculative issues.
honest
The
NSTA
r
Mines Co.*
*
Indications of Current Business
Activity
Mutual
Gulf Coast
20
customary cost in mind,
it
circulars of
;
1-4643
Corpus Christi Refining
■'
8
Frequently the. underwriter receives in addition
nominally-priced warrants or controlled (sometimes called
investment) stock
Teletype: NY
52
* <
.'
••
'•''
Coming Events in the Investment Field
Einzig: "Britain's Measures to Slow Down Inflation"
.
DIgby 4-4970
best efforts basis. The underwriter
a
commission of
we
ANCHOR PRECISION
33
expenses.
is
REFINING
42 Broad
way, New York 4
Cover
'■
/""
•{
.
J. F.Reilly & Co.,Inc.
•
(Editorial)
Business Man's
nets
'
18
Bank and Insurance Stocks
<
'
12
.v
How Long Will the Building Boom
Last,
Asks George Cline Smith,
XV~"-"
'
'
,
jV'y
Economic Planners Shift Signals, Says
Rukeyser
example, the** intended new ? edicts includes the
requirement * that? financial statements included - in the
offering circular must be certified byTndependent public
a
••
request
'
CORPUS CHRISTI
For
*
on
*
'•
,'
15
18
of its chief aims
imposition of certain special requirements applK
companies in the promotional or development.
to
stages. r;
7
one
^
on
'
DOMAN HELICOPTER
Company
Reports—Roger W. Babson___
is
■
v.
On Where to Live and Invest and
Retention of
'
last
OFFICIAL FILMS
BASIC ATOMICS
__
This
4-9551
9
Martin, Jr
revised draft of the former.
STREET, NEW YORK
Telephone: WHitehall
in 1966
Reserve's Credit Restaining Activities
—William McChesney
gestions received by it to date, and this latter release is
a
WALL
Federal
that the SEC has considered all of the comments and
sug¬
or
obsoletes !
Obsolete Securities Dept.
6
The Crying Need for Hard
Money—B. Barret Griffith
subject, similarly inviting written
related views on or before March
9, 1956 on its modified
version of the
contemplated changes. This document says
limit
no
time
4
Equal Competition for Savings, and Federal
Income Taxation
—Gaylord A. Freeman, Jr.__
same
our
Concepts of Credit and Voluntary Control
—James J.
1955
14, 1956 the Commission issued its Release
the
on
There's
on
99
data, views and comments in writing on the
proposed revision of the regulation.
We opposed that
proposed revision.
3613
;
TIME LIMIT?
4
____
Moderate Year Ahead—Malcolm P.
McNair
submit
No.
Cobleigh________JS<
Jay Hopkins
—Herbert
now
$300,000.
Interested
.*■
to
'
Cover
Mobilization of the Atom for Peace and
War
exempt from the registration
requirements of the Securities Act of 1933 small issues of
less than
AND COMPANY
Of Banks and Yields—Ira
U.
Proposed Revision and Consolidation of Regulation A and
Regulation D." «
:
»llCHIfflSlflU'
Prosperity—George W. Coleman Cover
i
In its Release No.
and
Page
on
•
Securities
3
4041
Wires to
DENVER
SALT LAKE CITY
4
The Commercial and Financial Chronicle
(940)
a
0i Banks and Yields
IRA
By
bank
elite
comparisons people
making between the
With all the
have
been
of
their
some
for
year
shrewd
on
the
handling
fortunate
or
bond
shown not the
account), representa¬
gleaning from 55%
to 60% of gross income from loan
interest.
Moreover,
the
loans
themselves are, in many cases, of
a
variety
quite uncommon
15
least desire to
years
make
ment
be
of
tive banks
observed
that
bank
stocks
have
history
repeat.
National
City
selling
above
Now
500?
Bank
moving
up
couple
a
of
loans
Well those
together
played
days
are
back
have
storms and
or
back
to
excesses
for
all
the
century
a
banks
today are
citadels.
They
-
dozen
a
not
bankers
money,
ac¬
major N. Y. bank
for
fine
for
borrowers.
operating for sus¬
tained good earnings are increased
automation in accounting, posting
and statement machines, and, in
many instances, the economies re¬
sulting from mergers.
There
are
banks
naturally
the
commer¬
S.
U.
and
we
can't get very far in
of them in this short
coverage
column. So we'll
selves
14,000
some
in
to
just confine
topical
comment
our¬
about
of the bigger ones with ac¬
random, the composite
photograph would look something tive trading markets.
like this: Yield, 4%; price, at or
In New York our first salute
near book value; cash dividends,
goes
to Irving Trust Company,
at
an
all
time
high; operating fifteenth largest bank in the U. S.
costs around 38% of gross; earned with total resources December
31,
on deposits about 6/10ths of
1%, 1955 of $1,733,101,000. Since 1943,
and dividends around 65%
You
can
even
peer
yield above
anty with an
5%
a
of net.
about and find
such
Guar¬
as
indicated
$4 divi¬
dend selling at 77 will provide. In
all truth you may say that here
it
had
more
than
doubled
its
net
share. 1955 net of $2.20 was
up 26% over 1954 and provides a
good cushion for the present $1.50
per
dividend.
At
32
with
such
a
favorable
trend in earnings and
dividends,
and
current
yield
where
the
most
solid
sort
of around 4.7%, a lot of logic can be
values
still
prevail; and where advanced for purchase of Irving.
yields,
considering
the
quality Irving has paid dividends for 48
factor, and historic comparisons, years in a row.
are quite rev/arding.
Chemical Corn Exchange
is
a
section of the
equity market
the
at
for
almost
the
over
market
bank
prices
think,
list
were
looking
today, that
discounting
significant
reduction
in
power in 1956. Yet close
inspection fails to turn up any
important
evidence
to
support
some
.
earning
!
.
view.
that
banks
seem
The
to
big
commercial
be
doing a fine
profitable)
job
at
what
they're supposed to do — lending
(and
be
favorably
number
of
regarded
The
reasons.
for
a
merger
creating it makes it;, the sixth
largest bank, with 98 branches in
New
York.
These
branches
de¬
special mention. They rep¬
entirely owned land
and buildings and are most con¬
servatively stated on the balance
serve
resent almost
sheet.
Moreover
that Corn
it
has
been
felt
Exchange while serving
The
1812.
Parade
.
.
Company
Trust
York
New
61
.
.
are just a few of the stocks we make our
markets in—or find buyers and sellers for—
own
First National Bank of
Baxter Laboratories
Mansfield Tire & Rubber Co.
Continental Assurance
National Aluminate Co.
Continental Casualty
Continental Illinois National
Bank & Trust
Company
Copeland Refrigeration
Chicago
Pipe Line
NEW YORK 5, N. Y.
Offices in 108 Cities
by
o
those
t
nuclear
u r
e,
f
na-
the
on
absolute
destructive,
depending on
waging
not
atomic
Soviet Union
when
years
book
value
than any of. the big banks we can
think of. Right now at 40 it's just
about
200%
of
book. But this
sold
higher
above
the
or
human
motivations
that
trigger
has not kept this
stock from being perennially well
; it.
But, unlike
other
natural
regarded; and the earnings have
been there right along. They were
forces, these
new energy
$2.75 a share last year against a
John Jay Hopkins
present $1.75 dividend. Current
forms, by all
standardsof
yield is around 4.4%. Bank of
America
is
the
biggest,
and comparison, have incredible power
though appraisal of it must be and a protein diversity. As benefoverage
made
different
somewhat
on
icient
creators
malignant deare
capable
of
or
grounds
than
the
New
York
banks, its history of progressive
banking and high earning power
stroyers,
they
penetrating
every
organic
inorganic
of
commends it.
nomenal
There
are
some
Northwest
during
had
we
an
monopoly of nuclear
The Russians, however,
They
should.
National.
It
few
into,
deposits,
Seattle-First
million in
Take
$63
has
$800
million
in
for
record
0f
Other
Fastern^ institutions.
inJitutU?™
en-
Portland selling around 56 and
paying $2. Dividends here go back
1871.
for those looking
velocity in banking
course
for maximum
restraints
violence
on
as
evidence of bourgeois weakness.
I think there is no question but
that
the
atomic
Soviet
would
wage ;an
if it could be reason-
war
abl.y certain of escaping a punishing retaliation. Soviet leaders are
—on
the record—ruthless
suit of any military,
economic
in pur-
political,
or
advantage,
This second
consideration, therefore, becomes essentially a problem
of lead
time.
As
terrible
as
gy'
-d
par-
all
0f
^ess
fear while the balance
remains in favor of the West, or
roughly even.
But should the
lead time
on an ultimate weapon,
bi-lateral
even for a matter of months, favor
the Soviet Union sufficiently to
offer a reasonably good risk of a
kn°ekout, I am certain that the
Present Russian leaders would not
traditional concept
1
pO^rS
or
hdsitata to exercise 'hei^ Meeting
advantage.
'
therefnrp
side
of
fho
atomic
through
its
'u^
^ forever
war>
ag seems possiblej the
We shall not, then, be saved by
lack of a military "difference" any "bow-and-arrow" philosophy
should force ambitious, ruthless of disarmament. We are, indeed,
nations to give up global war as I am persuaded, more likely to
an
instrument of foreign policy, be ruined by it. The way out of
these terrible weapons may yet. our terrible dilemma is not to flee
prove civilization's greatest bul- from the awesome presence of the
Warks, it greatest guarantors of atom but to face up to the, force
military stalemate, its most po- that now confronts us, and to turn
tent guardians of the peace.
• • . turn
...
turn it to creative
If thth
.
widelv held by use.
q£
of
And of
two
engaged,
nossessed eouallv bv all
pn™v
.
tries would include. First National
to
result
devastated/,'
minister
Eastern
Northwestern
than
more
should ,be
pnrnrinYir>allv
features
in
in
If
71
banking, a big pertime deposits, and large
fine
both.
would be
wide branch
53ft found
not Iinrf
do Russian and
as
States—would
ticipants
The yield is not alluring at
the
moment, but 'the
rate
of
growth is truly impressive. State
m
—
United
in the socio-economic destruction
years.
centage
moral
Indeed, they have frepublicly disparaged
and
danger is that a new scientific
technical breakthrough may
momentarily tip the balance
heavily in favor of OKe adversary.
Barring an "accident," there seems
world.
uninhibited
fusion in total, all-out war, where
both sides possess instant atomic
the
funds, 68 branches in Washington;
largest bank in a state
that's growing fantastically. $93
here will buy you a stock earning
(1955) $6.34, paying $2.80 with an
dividend
quently
nuclear weapons already are, they
are
now
in
balance.
The
real
capabilities
capital
and it's the
unbroken
the
restraints.
use,
then, of
military application of fission and
which
ever
structure
and
given every indication that
they would be bound by no moral
phe-
The
looked
banks
have
Easteners
truly wonderful
,
_
in
d*+h
and the
a
Arizona,
Bank
Bjjrnk
Franklin NaIsland
Long
on
article
an
some
simply did
bimpiy aia
tion
of
and
are
Such
is
wWwoe-
«
time
and
nermit menpermit men-
reference
dozens
to
(1)
good
bank
well below 1955
highs,
Ih/muJ J? wWJiosc -n"/
finfhor t/flirfa i
7
-
,
tfi» ,®an\ln? ye3j
...
dividends
Moreover
iitv,n
time
certain
continue.
you
feel
+/
to
somewhat
shares,
toward
can
should
appropriate
some
„
move
volatile
of
„
the
.
out
.
of
indus-
these
bank
might well provide a suitreplacement haven, a fairly
rugged market defense and satishave
doubled
in
market
Value in the past decade propelled
in part by a steady plowback of
earnings.
If there
a
f
a
were
no
moral grounds
"C;/®1UU/US
there are the soundest strategical
generalization depends,
two vital consideravital consiaera-
reasons.
nowever,
however, on
tions-
I
free
Are the nhilosonhies
i®,
worid
reallv
irreronHlahle?
u
morai
checked?
Are the
u
a
on-
-t
bound by any form
restraint
national
tant
when
often
cumii^
ambitions
There
be
can
no
said,
'
if
Soviet
;+1TTQ
® n+e
"
J.
,natl0i;al Dorders and
intprf^"p with he^
J
cHtlln
institutions.
UnLi
n
The Russian
address
by Mr. Hopkins on the
occasion of the 109th Anniversary of the
Chr,^
1956f
®
ho
nro
be p e~
titanic and
of
irPPe"ai.lstlc energies of the Soviet Union will not be dammed
_
,.
u
,
Continued
on page
SALES MANAGER
Established
the
Investment
Southwest
experienced
has
Sales
Firm
in
opening
for
Executive
to
an
supervise retail department.
Only those presently making $25,«
Th«
rs apparently cannot repon*An
pprtnln
*
pneruioc
are
tfn^^n^nnres/1^
SO(/al
am
tu
Russia
^
^oa!d? P°*^
.
t
\
ques-
her desire for peace by withdraw•
f
.
natfonal borders and
g
mUc+
T*u
impor-
tion regarding the free world's
approach to both of these questions. As President Eisenhower
has
T+
„
imnerialistir
•
0f
of the
pniiosopnies oi tne sumed that the furious,
and the Soviet Union
posing groups
factory yields. A lot of good bank
stocks
The power to destroy can and
must become the power to create!
power
.
and
that
JJ' nich?™/^
road to war.
.
and dozens of worthv bank shares
7x7
j-~,
u
u LIiyx
r Mldict>.
We did,
however, try to make
points
led inexorably to
is
is "°' the p,ath to »>eace: lt is the established by the military atom
piece
not
not
we are
—
their
4„
in
..
.
space
valid,
mili-
progressive
in/nLc
increases
..
many of the world's leading
tary and poiitical strategists
further apparent astonishing para- for turning to the economic atom
^ Jr, age, phase ofdisarmament as aprecariousand supplement of
this atomic the thermo- the support balance of
nuclear
able
70 PINE STREET
emphatically and cate-
gorically
war
force
issues
Merrill Lynch, Pierce, Fenner & Beane
any
weapons.
trial
Trading Department
e
have
the
to
a?d <4> .that 4he trend
Staley (A. E.) Manufacturing
pabilities
L i k
applicable
creative
higher
G. D. Searle & Co.
Texas Illinois Natural Gas
affairs.
themselves to such a nonimperialistic point of view. As to
moral restraint, the free world
has already demonstrated its ca-
energy can be
shares
American Marietta Co.
forcing revolutionary
all areas of human
V
war.
cile
West Coast
traditionally
Switching
the
Here
in
friends.
Bank of America has
Naturally, this
fully incomplete,
.
.
changes
company
should gain investor
...
.
is
power
dividends,
trust
renowned
and eager and
managements,
.
proper to comment
on the manner in which nuclear
at
unbroken
of
years
this
areas,
.
H seems
66, paying $3, returns a favorable
5%. It is selling almost exactly at
book value. With earnings which
should run above $5 in 1956, and
nnnniatinn
population.
.
aspect that cannot be overlooked in the cold
time ago) are still moving ahead
at a fast rate propelled
by rapid
THAT'S ILLINOIS
Major factor in farming and farm implements
Prime mover in meat-packing, publishing,
printing
.
Manufacturing center for 7.5% of the nation's goods
Rail hub handling 1,800 trains, 350,000
people, and more
freight per day than New York and St. Louis combined.
Opportunities for Investment in Illinois? Plenty.
tries
of the atom.
practical value of atomic energy to underdeveloped coun¬
as a symbol of hope and
peace is described as another
"chemical"
only
(covered here in
on
lead in both the destructive and creative
aspects
The
change you note here is increasing
strength.
tional
Industry
.
tion that has weathered every war
since
resources.
military strength,
continuing social, economic and psychological =./
frontal campaign.
Power for peace is viewed as a positive
financial institu¬
a
superior, scientific, technological
Mr. Hopkins' concept of all-out
power
active and
an
1955
—not bad
production
in advocating the organization of the
war
atomic
defense includes, besides massive deterrent
year-end versus re¬
price of $44.50. The
dividend creates a 4%% yield
$2
it did for
as
world's
and
market
may
You'd
peace"
free
and no reduction in dividend
rate—ever. Book value was $42.70
cent
Corporation
General Dynamics head urges the free world to "mobilize for
of cash dividends in a
years
market
Other factors
cial
128
Chairman and President, General Dynamics
as
row,
credit,
show
to
first half. Also
some
at
going
1956—certainly for
they are now
in a position to confine credit ex¬
tensions to the very top grade of
with
truly
financial
certainly haven't gone crazy mar¬
ket wise, and most today can be
bought at lower prices, than for
many months. If you were now to
stocks
is
,
demand
are
earnings
the
call
weathered
more—these
select
tight
banks
margin accounts.
Today our great banks, the fine'*
that
most
a
unabated
gone
10%
with
10%
ones
business
loan
ceptances commanding 4J/8%, and
points between sales?
And sell¬
ing at $7,800 a share in late
August, 1929? And double liability
to trap the unfortunate and un¬
wary retainer of sheltered bank
shares?
this
current
Cobleigb
U.
In
hundred
forever
loans and
term
appropriate bank
function, but with present interest
rates it's highly profitable. With
only
And First Na¬
tional
ago—personal and instal¬
amortization mort¬
loans,
re¬
volving credits. Many bank loans
today replace the bond or note
financing of yesteryear.
Remember
Bank
are
loansj,
gage
For Peace and War
By JOHN JAY HOPKINS*
business solicitation are
good reasons for earn¬
ing improvement.
Moreover, for those who set
great store on dividend depend¬
ability, you'll go far to equal
Chemical Corn Exchange history.
offered
depended
bank often
a
areas
gressive
present
In sharp contrast with the
30's (when a good earning
late
Dow-Jones
high
about
Mobilization oi the Atom
the trust and personal
of banking under em¬
were
phasized. Hence the merger with
Chemical and resulting more ag¬
money.
recent altitude of our share mar¬
ket,
and
the
readings of
1929, it should
loan
Economist
with some notes
desirability.
shares,
get
larly
of current yield and price position
A swift review
in retail banking did
area
all the banking business
it had at its finger tips. Particu¬
U. COBLEIGII
Enterprise
wide
not
Thursday, February 23, 1956
...
n,
000
annually
and
potentials will
Box
C
126,
Financial
with
greater
be considered.
The
Commercial
and
Chronicle, 25 Park Place,
New York 7,
N. Y.
32
Volume 183
Number 5510
The Commercial and Financial Chronicle
...
(941)
economic
/T
The
Production
round
Observations.
Electric Output
Carloadings
Retail
State of Trade
Trade
Commodity Price Index
Industry
Price
Auto
Production
stitutes
the extreme
tion of the
pre
Slight decreases were noted in the production of steel, elec¬
tricity, automobiles and paperboard.
of
t
i
e r m
u
is
n
o
our
Layoffs in the construction, food processing and auto¬
has
and
learning the hard way
that a few order cancellations are not
enough to kill a strong
market.
Both now realize they face tough
sledding in coming
months, "The Iron Age," national metalworking weekly, states this
consumers
pp.
gjjg
or
—
are
outright
blast
idle to pretend
-
that my health
Some
mills
which
are
had
now
overbooked
in
the
belief
regretting their haste.
that
stored
consumer thinking means there will be
carryovers
the hoped-for catch-up with delivery
promises.
in
some
sizes used in the 1956
drain
The
,
Iron
are
and June.
Age"
has
learned
that
rise
,
and
Detroit
and
other
state
in
acceptance;
.
go
the
which
Jan.
on
with
v
a
of
candidate
or
car
previous week's
136,308 output. The current week's pace is the
slowest of 1956, save for the New Year's-abbreviated
opening week
of 125,245 units.
on
or
the
t i
a
has
either
course
1
is>
would
the
realistic
bed-side
ing
on
active
logical
taken
over
the
not
nomic
"We
there
lessened.
of service with E. F. Hutton
Company,
623
entirely
Fair
f i
strongly in economic progress through free and
competitive enterprise as our
r
m's
rely-
government expenditures,v.
and private con-.
let down by Adlai. Defense spend-;
ing, public works and the like, are.
certainly not going to be forsaken
by Democrats in the saddle. As
Company
i n
1921, M r.
matter
a
of
impelled
than
would
to
Mr.
more
Ike
may
be
the
From
tive
v
"Ward's,"
factured
as
on
this
week,
however,
of
1910
to
as
Logan
1920, he
race
Angeles
W1^ taie equally.
member
Press
Club
the
of
and
Stock
If it is argued that "Republican
Confidence" is the crucial factor;
it must be remembered that the
Lawrence,
Indiana,
is
also viewed
cutback the past week to 29,565 cars from the
a
Our
prior
week's 34,751.
General
Motors'
decline
was
microscopic,
while
Continued
URANIUM
The
-
American
on
in WYOMING
$100,000,000 A Year Industry
of
page
A copy
49
part
of this
,"« »
J*.
<.
* j
free
sent
of
reports
a group
available.
now
upon request.
■
We deal actively in bank shares and are prepared to
to the man with
money and
industry with a future where
fabulous fortunes may be made.-'-We can
supply producing and
non-producing properties, Jarge ervgmall' with seemingfy-Tinlimited
.possibilities. Write us indicating your wants. No obligation. TO
/BANKERS; BROKERS or INVESTORS our engineers have
prei./pared a Price Chart beautifully printed, on.heavy Photo-type paper
a
will be
new
buy
or
sell in large
or
small blocks
at net
prices.
.
to
_
show
at
a
glance the
reflected
out
-
i
ore
All
grades from
as
one
Ton
assays
or
a
A
Copy will be
which will be refunded if
sent
not
million.
you
percentage of U30«.
Gives Base Price and all
Box
8834
Britton
prepaid
satisfied.
The Victor
Co., Inc.
showing the
bonuses paid by the A. E. C. for quick evaluation of investment
sibilities.
&
value of entire deposits of blocked
gross
by the
upon
pos¬
New York
Boston
•
*
San Francisco
Springfield
♦
receipt of $1.00
Write TODAY.
Louisville
•
Detroit
Sacramento
Company
Station, Oklahoma City 14, Okla.
•
♦
Chicago
Philadelphia
♦
Minneapolis
Fresno
•
San
•
Los Angeles
Pittsburgh
•
•
Jose
•
Spokane
•
active
of
in
as past
master of the Ascot Lodge in Los
Angeles.
;
Offering unprecedented, opportunities
vision;to become
analysis of the 1955 year-end
Exchange
Masonic circles and served
New-Fair Deal medication for the
outstanding banks is completed and
Los
charter
Club of Los Angeles,
]yj-r
Brown,
a
native
and Stock Prices
Bank Stocks
Chrysler Corp. with each division patterning four-day activity
almost consistently throughout February, and Ford Motor Co.
ac¬
.field
i^arTassociatemember ofThe
{,!"•!
the 1,000,000th United States car of 1956 is manu¬
Tuesday, Feb. 21. Last year's 1,000,000th unit was
was
the " riewspaper
in
&
a
said
assembled six days earlier.
in¬
serving in various capacities on
leading western newspapers. He
significantly, said the statistical agency, the current
production is 25.5% below turnout of the relative week
in 1935, in which 173,482 cars rolled from factories.
reached
ted
telegrapher
Morse telegraph wire.
old
borsa' but ln thf economic race,
the bettors on all the candidates
Confidence
Brown
Bryan in Seattle
on
Eisenhower.
good political
a
was
vestment firm
William
on
Bets Off
i
&
the
with
1
All
F.
a
a s s o c
doubtless
spend
E.
Brown
fact, any alternative
candidate as well as
Democrats
of
Hutton
More
be
the
com¬
and brokerage
departments.
Before join¬
ing
the local
,
week's
will
Spring
where
heads
munications
are
as
South
he
•
Surely
now
Calif. —Wil-
celebrating 35
staff
issues
believe
is
Street,
or
Deal; but
no
major ecodividing the two
governing alternatives facing us.
surely
&
Brown
struction, wage increases and high
consumer income, would not be
_
has
ANGELES,
public
basis for such
by the market commu¬
nity over the long, or even the
short-terms. Perhaps the party of
enterprise
years
impli-
one
behavior
free
LOS
liam E.
actual
investment
an(j
feel
Jitters!
no
in
the
no
E. F. Button 35 Years
January,
bullish forecasters
defense
...Actually, there is
be
is
W. E, Brown With
through Ike's withdrawal
unexpected Election dis-
what
the
for
next
there
in£ stock market behavior,
g0
Republican
Basis
Stevenson
a
House
not ke
bearish aspects
e n
that
that
for
taking for granted
the accompaniment of correspond-
Implications
re-
-
zig-zag
i d
r e s
otherwise
be-
Unwarranted
'
Surely the governments
aiiy_stimulated expansion would
rumors.
No
will
which
cati0ns?
at most with emphasis
their bullish
of the P
others
Short-Term Ass„mpt,o»s Likewise
built-in
the
11-3
transpired
Deal
economic
the
has
or
a
aster-
dis-
s
Decision
market influence!
following
for granted
has
possible pump-prim-
White
ejther
without the merest glance at value
criteria,
possible
stabilizers;
pass;
the
the
and
negative
a
President's
this
com¬
a
lieve.
Should that worst actually come
supplanted the stock-split as
even
takes
Eco-
warrant
to
poll.
The
Presi-
current
1
8, following
expressions
elicitation
in
to
great
fictional; manifesting the
individual's
popular
foible
of
gearing his policy not to what he
himself believes, but to what he
profes-
a
business
be
to
seems
demonstrates
occurred
contrasted
wished-for
couraging
all
all
Fair
report-to-the nation, and
coinciding with the covering .reporters
16-4 vote predicting his
All
building is another heavy steel con¬
sumer.
Oil and gas expansion, the former being
spurred by con¬
cern over the Middle Eastern oil
situation, is drawing the strings
tighter on oil country goods, drill pipe, and line pipe. Other steelconsuming industries are just as strong, or nearly so, states "The
Iron Age."
United States car makers tightened their belts another notch
last week by announcing further reductions in production.
The automobile industry turned out
129,210 cars the past
week, said "Ward's Automotive Reports," a 5.2% drop from the
milestone
the
extent
Republican President's vetojng of the natural gas bill really
a dirty New Deal trick?
down the
through the roof.
greatest single-day
1939,
bust
munity
to
the
Friday, after the doctors' fa-
severe
capacity
pervasive governintervention.
And wasn't
ment
vorable
auto
mills
drop¬
off in business.
A slowdown will give them a chance to get in
some much-needed maintenance work.
The fast pace of 1955 and
1956 to date has forced them to
rely on emergency maintenance
that merely postpones the inevitable shutdown for a
thorough
overhaul, this trade authority declares.
From a strictly business standpoint,
ignoring the steel labor
question, the outlook for steel is very promising. Construction is
going to be better than it looked several months ago. Private home
building, particularly.. Requirements for the highway program
A
for
event, the popular
politicial "confidence"
cial Security system, and most im¬
May
.
oversold again for second quarter.
If the market eases in third
quarter, as some expect, the
will welcome the breathing spell. It's not that
they favor a
Freight
excellent
up
since
last
unusable in the
expected to step up their sheet and bar orders for May
That's why some steel people are afraid they might be
will be terrific.
the
market's
porters
1957 variety.
"The
cars
to
Wilfred
quick succession
-
models will make
haven
a
any
portantly— to
A.
-
'
instead of
.Many producers are coming to realize what's behind the short
tempers of their customers. The shortage of some steel products
—particularly structurals—is interfering with steel expansion pro¬
grams. The mills and their contractors are forced to compete with
their own customers for a share of these products,
\ '
Buyers for automotive companies are trying to be conservative,
but even so, some of them are busy reinstating orders
previously
cancelled. Their problem is to balance inventory against sales of
1956 models, so they can come out fairly even before 1957 model
production gets underway. Basic engineering changes in the new
r e
which the doctors believed it to be
in mid-September"), stock prices
the
An about-face
in
be
can
created
readied
every
nuance
week.
market would ease
the dol¬
So much for the long term,
°ver the short term, the business
ing devices to curtail depression— repercussions following even the
when, as, and if.
It marks the wholly unexpected Republican dephilosophy of an Administration teat of 1948 were most mild. But
now
committed to big spending even should the short-term ecoand hence high as well as soak- nomic impact of a possible Demothe-rich
taxation, to
an
even ?ratic v.ictory be depressive in the
broader and more expensive So- industrial
sector, the record
recuperat¬
dent's
the
Eisenhower's
economic
(recuper¬
ated?)
Presi-
27,
has
cred^o^a^Adm/nistraUon" wh'ich
on
ing
were
producers
as
the part of the
on
economic fluctuations,"
quotation of one of Mr.
a
dent
("it would be
Steel
devastating to
—
g
s.
n
not
have also
we
Truman's planners, but
sion of faith contained
fluc-
t i
a
i
n
Hanging
the chief sources of new unemployment.
Chrysler Corp. announced that Chrysler
division is cutting back to one shift and laying off 1,000 employees
at its Jefferson and Kercheval plants.
;
moderate
crowd
market
t
tions in claims, while the level in Washington and Michigan rose
centers
demonstra-
But
.
.
Government
emotion in de-
country's employment situation revealed that initial
claims for unemployment insurance were at the level of the previ¬
ous week, but were almost 6% below those of the same period a
year ago. Illinois and Ohio reported the most considerable reduc¬
.
believe that the Federal
to
come
emptive
-
role
The
*
fathers did
pressive acrobatics over Mr.
Eisenhower's Great Decision con-
ago.
Feb.
And, in
credo about
Wall Street's current manic-de-
production for the country-at-large dropped
slightly in the period ended on Wednesday of last week, but out¬
put moderately exceeded the level of the comparable week a year
Starting
equity share
WALL STREET'S GREAT ORDEAL
J
noticeably.
inflation
harangued man-with-capital.
Business Failures
Total industrial
motive industries
bigger
lar, but correspondingly stimulat¬
ing to the attractiveness of the
By A. WILFRED MAY
Index
Food
and
be
taxing-spending and all-
the free economy and to
•
•
will
patient
doses of
Steel
5
•
Seattle
Cleveland
•
Pasadena
•
Oakland
•
Portland
•
Indianapolis
•
San Diego
Eureka
6
The
(942)
In the
Newer
"Higher interest rates and what
have you got—costlier operation
162
metropolitan areas has in- and deeper in debt."
creased 59% compared with only
While American businesses may
a
20%
increase
for
the
cities not owe their souls to the com-
And Voluntary Control
Chairman of the
to
f
i
iads
the
of
students
heart
very
business
the
of
the
As
boom.
problem
expenditures
consumer
as
current
of
matter
a
fact
First
the
National
Bank
of
ton
in
Bos-
its
newsletter for
D ecember
said
"Con¬
spend¬
sumer
ing sparked
the
.
.
re¬
.
that
began in the
covery
fall of 1954."
almost untold impact on
of
•
argument
no
Herbert R. Silverman
be
can
with
the
the¬
that
sis
the
record
outpouring of dollars by
the public has played
a
major
part in sustaining business ac¬
tivity.
In the third quarter of
1955, for instance, consumer ex¬
penditures
soared
to
rate of $256 billion.
This
was
the
of
the
best
At
the
price
1953,
until
business year on
same
index
time
the
sumer
Yes, I repeat, a new look must great danger. Allan Sproul, Prestaken at the concept of con-' ide.nt
of. the
Federal
Reserve
spending and the necessary Bank of New York, recognizes the
credit to effectuate such spend--fact that more objective study and
•
Outmoded
,
to
this shift.
.
the
credit
instalment
of
use
maintain
to
essential standard of
an
There
little
is
consumer
sire
spending, it
home
much to the de¬
level
high
the
of
the
that
doubt
building owes as
of
individual
for
con-
appears that a tighter
tighter
government
credit vehience and comfort as to the
policy has been instituted which need for adequate shelter. While
automobile
long
ago
was
is giving great concern to an ever- the
increasing number of people. This transformed from a luxury to a
and
is
the
artificial
factor
in
the
law
governing the demand and supply
freezers,
and
credit
and
—if there is
an
not
may
medicine
for
the
be
give
credit
the
of
in
families
Food
dishwashers
automatic
conditioners
must
cer¬
high on the list of
products where need is a sec¬
ondary consideration. And what
ailment.
subject
air
tainly
ailment
I believe that the time has
to
the
trend
two-car
largely from desire.
of
proper
of
number
stems
growing
the
necessity,
fact that
tight government credit policy
an
come
rank
What fac¬
about color television?
consumer
tor
serious
will
determine
whether
the
thinking—at
public will buy them — need or
least, more, apparently, than it
desire?
has been receiving in the past.
Another
new
Too long has the
ingredient -that
subject been
the whipping boy of the fuzzy must be taken into* consideration
economic thinker.
In our school is the modern concept of ''family
This concept embraces
days—and that was not too long living."
not only more widespread home
*An address delivered by Mr. Silverownership but bigger families, a
nan
before the Bank Credit Associates
rf New
York, New York City, Jan. 19. faster rate of family formation,
some
it
of
science
which
economics
said
regulation
ever,
terms
loosening
needed.
all
Association
Dec.
on
was
where
It
to
such
was
an
type of restriction.
none
liberal
long - range
credit
structure, with flexibility to meet
short-range needs is necessary for
our national economy and should
be
particularly
geared
to
the
amount of outstanding credit re¬
lated
to
Gross
our
National
In¬
and
come
potential
maximum
production and employment*
I
think
will
we
all
agree
,
that
expanded credit becomes dangerr
ous only when credit is used ir¬
is
the American Eco-
before
nomic
or
A
to
proceeding
along the present policy of observation and opinion. In an ad-
dress
given
was
loosening
of con- responsibly.; I think it is-an
economy
our
than
'rather
in operation. How¬
was
attention
no
that
assume
Consumer
se.
line
of
tion.
is
life¬
the
goods
produc¬
Curtail such credit and you
curtail
29,
of
dangerous per
credit
consumer
error
expansion
an
credit is
consumer
production
in most
every
be
to
for
or
by consumers gave them little
concern; all seemed to agree
no
was,
consumer
•
.
think
don t
I
there
is
••
anaiyze
us
for
'a
today
doing
interest rates.;, ;
to
the
on
quantitative
of credit, other agencies,
particularly private financial in¬
stitutions should
be encouraged
and stimulated to exercise control
aspects
By definition, interest rates are
•
advise
to
moment
anyone,
prices paid for loanable funds,
today, who will dispute the fact, In. an economy such as ours, in- on the qualitative side. The em¬
that just as credit in the hands
terest rates are in the long run phasis, currently, should be upon
of the producer may further the
established
by the interplay of the now larger than ever respon¬
production of goods and Services,
}
and demand forces in the sibility of private financial insti¬
make them available to
thus
and
the
consumer,
sufficient credit
so
enable him to
to
ducers
buy the goods and
thus
and
services
make
stimulate
more
As
for
that
delightful
of
the
August
Moon" sagely
ob-'
served,
"American capacity for
production is matched only by
consumers.
character Sakini, in "Teahouse
,
American
capacity for consump-'
•
It
^
'
tion,»
is
belief
my
credit
has
the
that
consumer
general influence
on
the economy as 'that
exerted by other types of credit.'
So
why make it the whipping
boy? Why all the current statements that it must be drastically
same
regulated to avoid
a
Pkp
bust?
..
the
on
Supply
the
com-
_
praisal
when
less
one
economic
on
over
expressed
the lack of effort of
recently
the Federal Reserve
authorities to
The
control excessive inventories.
fashion. By
tailor the supply
responsibility should pass to the
financial institutions themselves,
what
where
really belongs.
it
speaks of controlling
credit he must bear in
Federal
has
concern
the Board believes is appropirate
to the prevailing economic situthere are two kinds of control— ation, it has strongly affected the
quantitative and qualitative.
price being paid for loanable
We hear a lot today about the funds.
When
authority
an
Slichter
upward
to
instruct .a
importance of
is its justification. No
to
conditions than Professor Sumner
Federal .Reserve actions today
are powerfully affecting interest
Credit
the
but the
the matter
,
to
ap¬
of
attempting
borrower,
.
Bank
by
portfolios* \
On
inventories
the
financial
institution has its embarrassments
rates fr01^ risilJga*most eiJ
y y
affecting the supply of funds
]?y creatmS whatever loanable
func^ were required to keep interest rates from going up.
Reserve
and
content of their own
the war and postwar period when
of
situation
re-appraisal
credit
business
t'
til,/'
m°s4
Seneral level of interest
J?4?5 they choose to establish.
This was amply demonstrated in
an
consumer
tainly, they can help the general
cJe
in
borrowers;
to
do much for
can
credit, if it expands unduly, by
keeping credit terms in line. Cer¬
Fe(teral Reserve autho ies
th?y a£ s? dlspo*td' T '! 'T
with_ the,law of supply a d d
man.
advice
proper
they
,
,
can help to keep
situation in order
They
inventory
by
modities, normally should reflect
chanees in suppiy and demand.
endeavoring
of Credit
tutions.
rates,
nrice of
the
in
rharu?es
rates
Restrictions
Changes in
market.
credit
pro-
goods
Reserve
Board's
plans to
control
credit.
with the fact that
of
There
credit
by
The
mind that
control
and the trend to the suburbs.
Let
just what the Federal Reserve is
verboten.
dispute
'
1956.
may
in the hands of the consumer will
accelerated
the
,
...
though
that credit for. the
obvious, but more important, is
the
purchase through credit of
goods and services not needed to
now
the
the
determine
many
sustained
stems from
Credit
in
credit
sumer
needed
was
„
finance travel and vacations. Less
•
a
Relativey;'
sound, the one element in the art
evidences of
An obvious example is
are
However,
because
of
certain
misconceptions and because of the
concern
Concepts
Paradoxical
living.
of
the place
research into
ing.
*
credit market.
There
8%
same.
rate
gov-
a
sumer
and size of tomorrow's con¬
scope
record.
about
-
will
which
forces
consumer
remained
credit, by
consumer
ernment agency raising or lowerinterest rates is fraught with
all types
credit
consumer
,
the level of the previous
and 11% higher than during
summer
The control of credit, particularly
an
of
checked and held static while the
be
and
-
above
year
easier, for the increase in in¬
any
terest rates must be passed down
to them in the form of higher
prices.
spending.
consumer
made
growth
important sector of the national
unchanging -1955, he said, and I quote:
The rise of instalment
ago—the very idea of financing is the element of change.
"The basic question involved is economy.
Two centuries ago in France, whether
an
automobile on the instalment
an
attempt should
be debt from 3% of the Gross Na¬
plan was looked upon with horror Quesnay and his fellow physio- made through regulation of these tional Product in 1929 to 7% to¬
by the conservative banker and crats regarded as "sterile" any specific types of credit (meaning day should not give us too much
r
a
large segment of out popula¬ economic activity that was not di- consumer and mortgage credit) concern.
tion. Today, the banker has fig¬ rectly concerned with agricultural to exert a stabilizing influence on ■;V I believe that economists will
;
uratively rolled out the red car¬ production.
areas
of the economy which, in agree that our great problem in
This theory was in vogue for a the
the next few years is whether we
pet and the idea of the use of
past
appear
to have been
credit by individuals
to satisfy long time but the results of the major £0Urces of instability of will be able to bring to more and
their needs has finally found ac¬ industrial revolution compelled a employment
and production, or more American consumers a high
revision
of this thinking and in whether we
ceptance! . ■'
\'
.'
■ should
be content enough level of buying power to
However, it appears, that of the latter part of the 18th century with efforts to regulate the over- clear the markets of the products
late, another change has taken the views and writings of econo- all availability and cost of credit, turned out by our increased pro¬
facilities.
However,
it
place in the field of consumer- mists emphasized production. But -hoping that fluctuations in -the duction
credit which
has not yet been even this emphasis contained a
major areas of the economy will goes without saying that this buy.fallacy
because
credit, baiance
fully appreciated.
The use of glaring
out.
Our
experience, ing power must not be the result
credit by individuals has shifted according to these thinkers, was ^us far, suggests to me that gen- of
a
speculative boom.
For in
considered to be a facility to be
in
very
recent years from the
eraj credit controls can exert an speculation lies disaster. The cat¬
used only by producers.
Rightly effective influence on these par- astrophic
financing of basic human needs
results
of
unbridled
to the financing of reasonable hu¬ used by them, so the economists ticular
types of credit only with speculation in the late '20s should
man longings and
desires. These of the time thought, the produc- a considerable lag, and that we warn us that it must not be al¬
longings and desires, and the nec¬ tion of goods and services would cannot rely upon countervailing lowed to happen again.
be stimulated.
How these goods forces in the
I submit that while the Federal
essary credit to satisfy them, are
economy to mainReserve authorities can do much
rapidly becoming the activating and services were ever to be paid fajn 0ver-all stability "
annual
an
and
families
two-car
is not being
Thursday, February 23, 1956
...
,
Certainly,
there
leading
greatest
of
store, the lot of the Ameri-
consumer
can
the
might be
Real
has
suburbs
ping centers, the creation of myr-
consumer
middle-sized businesses.
regard
the
to
real estate boom
history of the nation, the
construction of thousands of shop-
needs to reasonable longings
i-
nation's
the
chain-reaction
a
the
in
financing from human
and desires and the backbone
role of consumer spending in the economy, Mr. Silverman
challenges critics of consumer credit by pointing out:
(1)
if credit is required for production then it is equally necessary
to assist consumption; (2) the artificiality and ineffectiveness
of consumer credit restraints; (3) that "fuzzy" economists
should make dispassionate studies, and (4) the only dangerous
credit is irresponsible credit.
Urges cooperative voluntary
restraint program with financial institutions, and outlines
non-financial qualitative services
rendered to small- and
shift in
off
set
/
Board,
National Commercial Finance Conference, Inc.
After describing the
of
pany
trend
This
Talcott, Inc.
the subur-
years
themselves.
HERBERT R. SILVERMAN*
Vice-President, James
past 15
population
ban
Concepts of Credit
By
Commercial and Financial Chronicle
be
can
the
A
no
Proper
Federal
in
Canada
,
Points the Way
In
line
financial
with
my
institutions
thought that
should vol¬
police and regulate the
qualitative nature of credit with
authority of a central agency
untarily
Suggested Approach to a
proper
Experience
Credit Policy
the
The history of credit
regulation
behind it, the experience of our
by the Federal Reserve System neighbor, Canada, is pertinent.
always will be necessary. But the is not particularly inspiring.
In There, as you know, they do not
question troubling a great num- each of the three applications of have a banking system like our
Reserve is not only necessary but
"FOR SALE"
serious
of
ber
of
students
the
Regulation
"W,"
Government
Federal
.
problem
(A) Canvas
end of
Bound
Chronicles from
1953 available in N.
is:
presently
1926
—
to
the
being
Federal
the
correct
Y. C.
bound
volumes
of
the Bank & Quotation
1908-1928
c/o
It
Board,
seems
to
by
the
many
that undue empha-
sis is being placed on the raising
of
interest
rates
as
a
control
the
Chronicle
including
Record, covering the
measure.
During the past
years
inclusive.
Phone REctor 2-9570
measures
emphasized
Reserve
ones?
such students
also
(B) 84
the
are
seen
the
Federal
we
have
Discount
rate
year
to 2%%., thus necessitating
the rates charged by banks and
go
Edwin L. Beck
Chronicle, 25 Park PL N. Y. 7
up
other
financial
•
institutions
like¬
wise to go up and up and the end
is not in sight.
song
on
the
hit
parade
System but they
1
considered
tended
to
be
"right" terms.
the
*
Then, in each case, the removal
cf
the
regulation
meant
that
lenders
were
terms, and
moved
free
left
to
make
competition naturally
terms
in
an
easier
second quarter
R.
of
Montreal, production of goods and
was running nearly 10%
services
higher in over-all terms than in
1954.
According to Mr. Ball, the im¬
only
reached
these
By the
1955, according to Gordon
Ball, President of the Bank
of
direc¬
tion:
The
To paraphrase the words of the
popular
Reserve
agencies took the responsibility do have a strong central bank.
of determining what the terms
Canada's
recovery
from
its
were to be.
Lenders naturally
slight recession cf 1954 has been
went as far as they could within
nothing short of ^spectacular and
the limits laid down. The longest has exceeded the most
optimistic
possible terms within the law forecasts.
from
conclusion
the
regulations
to
be
experience of
was
that
the
portant job of moderating the re¬
current trends of business activity
Continued
on
page
34
Volume 183
Number 5510
..
The Commercial and Financial Chronicle
.
(943)
savings, has
Harvard Graduate School of Business Administration
of moderate
advance with inflationary forces held in check based
following: (1)
business
decidedly hiked;
are
investment
(3)
increase;
cludes with
(2) lower rate of
the
000,
whole.
(2)
Gross
National
Product,
perhaps the best over-all measure
looked' of business activity, was $361 bil-
at this
modest
lion
recovery from-$392
the readjustof
in
billion
1955,
ment
of
into
ble
a
.
or
i
,
in the
and
will
rate
a
third
of
quarter
probably
total
$387 billion for the
year
Personal
income
$30
over
more,
amounted
in
1955
;
at
was
1955.
the
inst
follows:
approximately
up
*°*al
nearly $31 billion in
quarter
This
is
a
the fourth
factor
that
was
in
dence at the end of 1954
pected
to
of 1955"
Thus
1955
than
year
Many
was
it
a
economists,
jority,
at
this
much
bigger
forecast
was
to
indeed
time
a
last
be.
ma-
year
doubted whether 1955 could equal
during
touched
which
top.,
a
year
annual
rate
we
-
of
been
(7)
continue
through
ex-
most
there
significant
sumer
;
$283
billion in
con¬
even
income
in
1954; and
as already remarked, therysharp increase in total con¬
was a
debt.
SUmer
'
'
Tf
.
£ ^nW?o
f^ors
he
apt s' «
.
one
m^ght
two
or
nut his
Sales
7%
from
The effect of wage advances has
been held in check by better vol¬
slightly higher prices
months, and improved
control.
pense
after taxes
be
Therefore
for the year
since
year
taking into
a
figure of $237
...
.
1950.
account
The questions
"p between November, 1954, and
November,
by more than $_>
billion. Roughly half this lnstaim.ent credit represented automobile
purchases and was clearly a
major factor in the sale of mors
than 7V2 million cars in 1955; a
large part of the remainder, e?
course, -represented
other
con¬
sumer
durables. At the
mortgage
in
these
December, 1954.
billion in
1954,
Fnrment spending in 1955 after the
TTnhirn
upturn
forces
gharp
What
credit
sustained the
same
time,
increased
and
housing boom.; Then
credit-
factors
sparked
business
a
1955?
the
were
What
causes
of
this
f
business
did
we
drQp
which
toQk
place
^
upturn
miss
in
.
in
our
in
the .preceding year. Thus governA
ment expenditures
were
factor
1
situation.
(6)
more
in the
1955
All this
jobs.
increase
activity
There
in
the
was
labor
a
neutral
greater
force
than
was
of
expected, apparently because
more
women
being attracted
into
the
ranks
(1)
of
including
principally
spending,
em
government
bracing defense and other Federal
outlays and also state and locnl
spending,
generated
a
spending,
(2)
business
we
boom
spending
for plant and equipment,
(3)
business spending for inventory,
(4)
spending
both
private and public, and
consumer
workers; the
average number of hours worked
for
constructio:
spending,
which
Continued
(5)
o?
page
on
is
3<j
I
*
/.
This advertisement is neither
an
offer to sell nor a solicitation of an offer to buy any of these securities. The offering is made only by the
Prospectus. This is published on behalf of only such of the undersigned as are registered dealers in securities in the respective States.
.
in
ex¬
New Issue
February
profits
than
21,
ig$6
in-
Dollarwise,
the
sales
400,000 Shares'
in¬
ask
now
Tennessee Gas Transmission
our¬
(1) How much farther, both in
extent and in time, will this
gen¬
eral
i
vGOO million fromthe end of 19„!
of
October,
1955,
the
stock-sales ratio was lower than
as
these:
are
..
"edlt' which increased less tha
.
The difference between the of all was the strong consumer
two preceding figures, namely, demand, especially the demand
the figures technically known as for durables and particularly for
crease, they will almost certainly
be better than in
any year since
1948.
v
*
selves
mairJ
fing^? oi
1955 will
better percentagewise
any
„
former nstalmert
marily because of lower markdowns; and the expense rate is
just a shade lower than in 1954.
ume,
:
...
.
1954, has risen
re
1954; the gross margin rate is up
by 1 or 2 tenths of a percent, pri¬
recent
ths
that
increased
spending
than
also
was
fact
to the end °f 1954> actually wen*
i
stock-sales ratio would not rise. In
fact,
anticipated.
Then
very
evi-
was
the preceding year. Not foreseen,
however, was the fact that sales
would increase so much that the
denartment
have
we
year results as
are
a
$2? billion for the whole of 19o4,
the rate of this spending rose to
nearly $4 billion
higher than at the same point in
.•
increase in disposable income than
had
(2) There was also an upturn faster
business spending for plant and hence,
i
(3)
The
factor
of
inventory
build-up was definitely foreseen,
Unemployment, conversely, By October 1955
inventories of
went from 2,800,000 in December,
manufacturers wholesalers and
1954, to 2,400,000 in November, retailers
were
_
roughly approximate the 1955 fiscal
try and the response of the public
to these efforts were phenomenal.
tended
to
rise;
and
factors, in conjunction with
higher wages (which were clearly
foreseen), brought about a greater
indus-
than, the
many of us missed last year since
*moved u,p to $256 bllllon at an analysis of the situation a year
annual rate in the third Quarter, ago? Some of the major elements
°_OI7_ outness we_nave ]USt re-} and probably will total
$253 bil- in the imtnrn were as £ollows:
corded
the
best Christmas sales //*
u11" in the upturn were as followslion; for the entire year.
in
history;
and
we
can
now
llon-£or the entire year.,
>
(1) Probably the biggest factor
in
business
the
(9)
long-termA?) Personal consumption, from tremendous
rate of growth.
Snecificallv
efforts of
.
the entire year.
three times
greater than the annual
store
and
decline .which
in November of 1955
1953,
whole.
(3)
promotional
ex-
merchandising
The
than
64,800,000.
$272 billion, and evidently
will, total close to $269 billion for
industrial
activity
rate two
a
as a
carried'to
.
of
commercial
at
verita-^
least
to
rose
pected.
greater
week
per
these
substantially higher rate of busi¬
a.bout $370 billion for Gross Na(4) Tbe continued demand for
ness activity, incomes, number g 1
the U.S. econr
according
to
the
most
recent tional Product. In the department
housing was an important factor
jobs, and so on, than had been
omy to new
figure to a rate of $310 billion, store
business
specifically,
I in the 1955 boom. This demand
anticipated.
heights of and apparently will total $303 bil- suggested last year a probable 3% also was foreseen in
part, but it
consumption, lion for the entire year.
.
increase for the spring season; was not visualized as being so
1956 Outlook
p roduction,
(4) Disposable income, i.e., what Amos ■. Parrish predicted an in- strongly
maintained
thrdughout
So where do we go from here?
and employindividuals
have
available
to- crease 0f 2% *> and the actual in- the year,
As usual, we must base our esti¬
ment. Indeed
spend, from a 1954 figure of $255
f or *hre. February-July
(5) As correctly foreseen, there mates on an appraisal of the out¬
the expansion
billion came up to a third-quarter penoa was over o/0.
was
a
flattening out of g0Vern- look for the important flows ci
rate of
Prof. M. P. McNair
was
at
boom that'
has
and
1954
1954,
slightly
was
1954
credit
Emplovment,
which Vin
December,.-1954, stood at 60,690,-
as
a
of
(8)
strong upthrust of consumer
spending converted what, a year
like
end
.$35 billion.
for 1954, stood recently at 144 and
will probably average 139 for 1955
time,
the
consumer
jumped t0
The year 1955 was preeminently
the "year of the consumer." The
ago
At
of
billion. By November of 1955-this
"
a
-less
income,
or
disposable
volume
-outstanding
Con¬
areas.
of
credit.
sumer
special department store analysis.
a
6%
billion,
substantially
(7) In this connection a very
significant figure is ...total/eon-
uncertain inventory-turn
dangerous strains in certain
sees
than
$16
automobiles. In 1955,/'automobile
sales wfere gome 17%
or
18%
higher than in 1954. Production of
close to eight million cars was
/
even
situation; (4) less pronounced construction rise; (5) lower
rate of consumer
spending accompanied by accelerated debt
repayment; (6) higher short-term interest rates; (7) possible
political tax reductions; and (8) divergent price trends. Pro¬
fessor McNair
below
The total for the year
may be not
-far from $16 billion.
the-
on
government spending slightly increased
if defense outlays
what
,
year
during the
1954
the
figure
$18 billion, a little over 7%
of
disposable
income.
By
the
third
quarter
of
1955
it
had
dropped to an annual rate some-
By MALCOLM P. McNAIR*
a
For
year.
was
Lincoln Filene Professor of Retailing
Prominent business professor percei/es
gone down
past
Moderate Year Ahead
7
Company
4.50% Cumulative Convertible Second Preferred Stock
go?
(Par Value $100 Per
(2) What will be the nature and
extent of the readjustment? When
will it begin?
Share)
/
Convertible into Common Stock through March 1, 1966
;
(3) How will the department
store business be affected?
I
tal
don't think there is
Price
any crys¬
ball
that is able at this time
to afford definitive answers to all
these
questions.
have
we
But
sought
to
we
do
can,
on
(2)
sues,
interpret,
in
per
Share
as
other
similar occasions, (1) direct
your
minds to pertinent facts and is¬
fashion
$100
Plus accrued dividends from the date of issuance
Copies of the Prospectus may be obtainedfrom any of the under¬
are qualified to act as dealers in the respective States.
some
signed who
at
least, the current and
immediately recent developments,
(3) sketch the major probabilities
they
as
with
you
your
appear, and
now
important
of
all,
try
to
(4), most
provide
Stone & Webster Securities Corporation
better background for
a
continuing
task
of
interpreting and forecasting as the
White, Weld & Co.
h
own
The First Boston Corporation
Eastman, Dillon & Co.
r
year progresses.
:
Glore, Forgan & Co.
Goldman, Sachs & Co.
t
Facts
Next
where
how
data
in
is
to
Kidder, Peabody & Co.
Lehman Brothers
Merrill Lynch, Pierce, Fenner & Beane
Incorporated
see
just
and to consider
Paine, Webber, Jackson & Curtis
Smith, Barney & Co.
Union Securities Corporation
Dean Witter & Co.
got there. Comparing the
now
1955
order,
we are now
we
Harriman Ripley & Co.
and Predictions
available
with
the
figures for 1954,
lowing:
for
most
of
corresponding
we note the fol¬
A. G. Becker & Co.
Incorporated
Hemphill, Noyes & Co.
Central Republic
Company
Drexel & Co.
Clark, Dodge & Co.
(Incorporated)
Hornblower & Weeks
W. E. Hutton & Co.
W. C.
Langley & Co.
(1) The Federal Reserve index
of
production, which averaged 125
*An
fore
Address
the
sociation,
by Professor McNair be¬
National
New
Retail
York
Dry
City.
Goods
As¬
Lee
Higginson Corporation^
F. S. Moseley & Co.
Salomon Bros. & Hutzler
Wertheim & Co.
^
8
Christiana Securities Co.—New
120 Broadway,
Study—Laird, Bissell & Meeds,
The Security
I Like Best
Bulletin—Park, Ryan, Inc., 70 Pine Street, New York 5, N. Y.
G.
South La Salle
Crusader
& Tracy,
Ltd.—Memorandum—Rogers
Conn,
120
Inc.,
Street, Chicago 3, 111.
Uranium
Oil &
2
Continued from page
New York 5, N. Y.
City of Detroit Mich. Water Supply System Revenue Bonds—
C.
1956
February 23,
The Commercial and Financial Chronicle... Thursday,
(944)
—
Bulletin
M. A. Cleek, Paulsen
—
Building, Spokane 1, Wash.
Daystrom, Incorporated—Report—Bertrand W. Hall & Co.,- 41
East 42nd
Street, New York 17, N. Y.
Fanner Manufacturing
San Francisco
Area
Firth Carpet
6, Calif.
Resources—"A
Chest in
Treasure
ings"—Francis I. du Pont & Co., 1 Wall Street, New York
City. Also in the same issue is an analysis of Storer Broad¬
casting Company and three selected $10,000 portfolios. Also
available is a list of 25 selected "bull market" shares vs. a
the
Growing West"—
Book explaining why the area served offers so much oppor¬
tunity to industry—Utah Power & Light Co., Dept. K. Box
899, Salt Lake City 10, Utah.
list of "Storm Shelter" issues.
Atomic Commentary—Semi-annual report on status of industry
as
of Dec. 31, 1955—Atomic Development Securities Co.,
Inc., 1033 Thirtieth Street, Northwest, Washington 7, D. C.
Bank>
Stocks—Analysis of 1955 year-end reports—Blyth
Co., Inc., 14 Wall Street, New York 5, N. Y.
&
&
Co., 120 Broadway, New York 5, N. Y.
information—Yamaichi
Fisheries Industry—Analysis—The
Co., Ltd., 5, 1-chome,
Tokyo, Japan.
Securities
Kabutt-cho,
Nikko Securities
Nihonbashi,
Chuo-ku,
Japan's Motion Picture Industry—Analysis in current issue of
"Investors Beacon"—Nomura Securities Co., Ltd., 61 Broad¬
New York 6, N. Y. and 1-chome, Tori, Nihonbashi,
Chuo-ku, Tokyo, Japan. Also in the same issue is a discus¬
sion on
Amending Foreign Investmnt Law and Japan's
Six-Year Economic Program.
way,
"Let
Robot
Do
with
It"—Automation
particular reference to
the Cross Company, Foote-Burt Company, Giddlings & Lewis
Machine
Snyder
Tool
Tool
Company,
and
Kearney
Engineering
Swasey Company—Troster,
Trecker
&
Company
Singer &
Corporation,
and
Warner
Insurance
Aetna
Life
Co., 74 Trinity Place,
Stocks—Analysis with particular reference to
Insurance
Jefferson
ance,
Company
of
Connecticut
Company,
Assurance
man,
Standard
Co.
and
Life
Insurance,
Travelers
Life
General
Life
Insurance
C.
Allyn &
Industry
Norwich
Wall
Ocean
with
particular
Old
showing
an
up-to-date
com¬
National
Life
Insurance
,
Co.—Memorandum-
Pharmacal—Bulletin—Van
Alstyne, Noel & Co., 52
Street, New York 5, N. Y.
Products, Inc.—Memorandum—Louis
Wall
C.
McClure
Co.,
Street, Tampa 2, Fla.
Hickory Copper
Marine
of
capital
—
&
Manufacturing Co.—Analysis—Cowen
Co, 54 Pine Street, New York 5, N. Y.
Pacific Uranium Mines
$2.25
&
share, and if the current
progress
continues,
it
would seem to me that earnings in
a
of
three to four years
Co.—Circular—Singer, Bean & Mackie,
Beaver
Steel
Corp.
—
Memorandum—H. Hentz
Co.,1 60
Street, New York 4, N. Y.
Riverside
Cement
Co.—New
Office Square, Boston 9,
Robertshow
&
10 Post
Co.,
Fall of
the
1957, but at the same
company to
time has enabled the
off
pay
of its debt obliga¬
some
In 1955 it is believed over
tions.
$3.2 million in debt was paid off
in addition to retirement of 160,par value pre¬
payments are due
July, 1957. Approxi¬
shares
of $20
ferred. No debt
until
now
170,000 options were ex¬
last year. Dividends of
mately
$1.20 were paid last year includ¬
brochure
Packard
that if current earn¬
parison between the listed industrial stocks used in the Dow-
ings
projections
a
higher
me
materialize for
might
dividend
well be considered before the year
"Formula
Its 35% interest in Disney land
is
for
report
in
form
Growth"—Studebaker-
Corporation, Detroit, Mich.
Valley National Bank of Phoenix—Analysis—William R. Staats
&
to
end.
Corporation—Progress
entitled
would
ing 20 cents extra, and it
Co.—Analysis—Cohu & Co., 1
Street, New York 5, N. Y.
Packard
to
gether with retained earnings, will
help the company to prepare for
color
broadcasting probably by
1956,
views—Lerner
Mass.
Controls
Fulton
Studebaker
of
&
up
a
seem
Republic
could get
share. Depreciation
charges currently running at the
rate of over $8 million is an added
constructive
feature
which, to¬
$4-$5
ercised
Exchange Place, New York 5, N. Y.
gains. In my opinion,
for 1956 could exceed
share and may even cross
a
$2.50
000
Report — General Investing Corp., 80
Street, New York 5, N. Y.
Outboard
Street, New York 5, N. Y.
Over-the-Counter Index—Folder
Williston & Co., 115 Broad¬
Southwestern Life Building, Dallas 1, Texas.
617 Madison
Wall
reference to Cities
Service, Ohio Oil, Pacific Western Oil, Phillips Petroleum,
Socony Oil and Standard Oil of Ohio—Thomson & McKinnon
11 Wall
Survey
—
Corporation—Analysis—Greene and Com¬
Dallas Union Securities Co., Adolphus Tower, Dallas 2, Tex.
National Life
Insurance—A.
Inc.,
neighborhood of $1.85 a share plus
5 cents of capital gains, as against
rate
Company-r-Study—Schneider, Bernet & Hick¬
Northwestern
Co., 122 South La Salle Street, Chicago 3, 111.
Oil
& Co.,
Also available is a
Y.
37 Wall Street, New York 5, N. Y.
National Tank
Franklin Life Insur¬
Co.,
Virginia, Lincoln National Life,
Accident
N.
Jupiter Oils Ltd.—Analysis—J. R
way, New York 6, N. Y.
40
Insurance, Continental
and
Horizons Titanium
&
New York 6, N. Y.
Life
5,
Company—Analysis—Ira Haupt & Co., Ill Broadway,
6, N. Y.
pany,
Stocks—Current
Co., Ltd., Ill Broadway, New York 7, N. Y.
Japanese
York
Parke, Davis & Co.
New York
Investing in the Drug Industry—New Booklet—Harris, Upham,
Japanese
Hoover
New
on
;
Earnings of UPX last year are
believed
to
have
been
in the
earnings
Co.—Memorandum—Kidder, Peabody
Street,
memorandum
Diego, Calif.
Co., 44 Wall Street,
5, N. Y.
Seybold
Wall
17
,
Electronics—Bulletin—Salik & Co., Bank of America Building,
San
Harris
lion.
$1.06 in 1954, plus another 5 cents
Foote-Burt Co.—Memorandum—Grimm &
New York
year
may
Company—Analysis in current issue of "Glean¬
in the previous year
million
it is
Co.—Report—De Witt Conklin Organi¬
zation, 100 Broadway, New York 5, N. Y.
Airlines—Bulletin—Dean Witter & Co., 45 Montgomery Street,
against $34
and
my opinion that billings this
will exceed $75 million and
get up to as high as $85 mil¬
'
Y; '. Y ; Y;,Y
Y'
Y''
1955,
million in
$52
Co, 640 South Spring Street, Los Angeles 14, Calif.
a good publicity feature and al¬
though nothing has been pulled
down it is regarded as a huge suc¬
cess.
AM-PAR-Record
Corpora¬
tion, organized last June, is get¬
ting
underway
distributing
Mickey Mouse records and other
Jones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau
Averages, both as to
items of interest. Its 33%
interest
in
a
yield
is owned one-third
each by UPX, Western Union and
the i Microwave
scientists
offers
and
National
York
market
Quotation
over
Inc.,
Bureau,
a
46
13-year period —
Front Street, New
in
Wyoming—Price
value
gross
flected
of
by the
grades from
bonuses
entire
Ton
paid
by
showing at
of
blocked
a
out
as
or
a
million.
Gives
Base
Price
*
Oklahoma
♦
m
Broadway, New York 6, N. Y.
♦
&
Standard
Sanitary
Corp.
—
Analvsis
—
Co., 120 Broadway, New York 5, N. Y.
Mining & Development Co.—Memorandum—Mountain
States
Securities
Corp.,
Denver
Club
Building,
Denver
2,
Colo.
Borg Warner
Wall
Corporation—Analysis—Glore, Forgan & Co., 40
Street, New York 5, N. Y.
Borg Warner
SECURITY
Analysis — Bruns, Nordeman & Co., 52 Wall
Street, New York 5, N. Y. Also in the same bulletin is a
Traders
Association
of
OF
NEW
—
to
appears
me
that
ABC-
appeal
this
at
time
and
I
YORK
New
COMING
Points
as
York, Inc. (STANY)
of Feb. 16, 1956 is as follows:
EVENTS
Team
(Capt.), Farrell, Clemence, Gronick, Flanagan__,
Leone (Capt.), Gavin, Fitzpatriek, Valentine, Greenberg
Grownev (Capt.), Define, Alexander, Montanye, Weseman__
Donadio (Capt.), Brown, Rappa, Shaw, Demaye
Kaiser (Capt.), Kullman, Werkmeister, O'Connor, Strauss
Serlen (Capt.), Gold, Krumholz, Wechsler, Gersten
Leinhardt (Capt.), Bies, Pollack, Kuehner, Fredericks.-.
Topol (Capt.), Eiger, Nieman, Weissman, Forbes
Barker
10
In
19
15^
Chattanooga Gas Company—Card
memorandum—Link, Gor¬
Peck & Co., 208 South La Salle Street, Chicago 4, 111.
Bill O'Connor
Mid-Winter
10
Bellevue-Stratford
__
9^
8
3
•
209
,
Chicago & Northwestern Railway Co.—Memorandum—Salomon
Bros. & Hutzler, 60 Wall
Street, New York 5, N. Y.
-
Hank Serlen
Philadelphia
March 9,
1956
in
the
Association
Annual
32nd
Dinner
Security
30th
Grand
at
the
Hotel.
(New York
York
New
Association
City)
Dealers
dinner
annual
Ballroom
March 12-14, 1956
Ernie Leinhardt
George Leone
of
of
the
Y Biltmore Hotel.
5 Point Club
L 206
Cy Bies
(Philadelphia, Pa.)
Investment Traders
13
(Capt.), Jacobs, Barrett, Siegel, Yunker__^
Point Club
March 2, 1956
15
15
(Capt.)^ Bernberg, H. Murphy, Whiting, McGovan
200
Field
16
Meyer (Capt.), Corby, A. Frankel, Swenson, Dawson Smith__
Bradley (Capt.), C. Murphy, Voccolli, Rogers, Hunter
Manson
Investment
16
.
brief discussion of Continental Baking.
man,
ASSOCIATION
TRADERS
Krisam
Lubet-
It
Paramount Theatres has outstand¬
ing
Bowling League standing
Co., 39
com¬
which
would recommend its purchase.
Security
American Machine & Metals,
Inc.—Analysis—Seligman,
kin & Co., 30 Pine Street, New York
5, N. Y.
Radiator
Notes
NSTA
E. C. for quick evaluation of
A Copy will be sent prepaid upon
will be refunded if not satisfied.—
American Alloys Corp.—Memorandum—S. D. Fuller &
Harris Upham &
All
and
the A.
receipt of $1.00 which
The Victor Company, Box 8834 Britton
Station,
City, 14, Okla.
American
re¬
Associates,
long-term possibilities.
glance the
ore
showing the percentage of U.,Os.
assays
one
chart
deposits
investment possibilities.
Balboa
pany
4, N. Y.
Uranium
all
performance
Microwave
Association
,
;
Firms
;
Mike Growney
of
(Houston, Tex.)
Stock
Exchange
meeting of Board of Gov¬
ernors.
April 26-28, 1956
(Corpus Christ!,
Texas)
Second
Printing Highlights
fjemura £entrittes
"Let Robot Do It"
Member
Company
Broker and Dealer
Giddings & Lewis Machine
Warner & Swasey Company
New
June 1, 1956
B
on
2400
74
Trinity Place, New York 6, N. Y.
61
Oct. 3-5, 1956
Broadway, New York 6, N. Y.
Tel.:
BOwIing
Head
Green 9-0186
Office
Tokyo
(New York City)
Country Club.
without obligation
376
Annual Dinner
Municipal Bond Club of New
York outing at the Westchester
Japanese Stocks and Bonds
Troster, Singer & Co.
NY 1-
York 20th
Material and Consultation
'
Security Dealers Association
annual
at the Waldorf Astoria.
Tool Co.
Y.
Investment
April 27, 1956 (New York City)
N.A.S.D.
Snyder Tool & Engineering Co.
Members: N.
of
Association
Security Traders Association of
Kearney & Trecker Corp.
Foote-Burt Company
HA 2-
Group
Bankers
meeting at the Hotel Driscoll.
©a., Xtd.
Featuring
The Cross
DEPENDABLE MARKETS
Texas
DEMPSEY-TEGELER & CO.
Association
Firms
.
(Detroit, Mich.)
of
Stock
Exchange
meeting of Board of Gov¬
ernors.
Volume 183
Number 5510... The Commercial and Financial Chronicle
An
Optimistic Look Ahead—
Our National Economy in 1966
ahead and
years
„
"
V
;
Introduction
.
tions in the
*
>
economics courses
and
called
description is incorrect today
two counts.
on
For
de¬
one,
spite all the
talk that econ¬
omists
have
discovered
to
ways
trol
con¬
busi¬
the
cycle,
ness
e c o no
mic
certainly
not
a
_
IA
Im
be
science. The
havior
man
O'Leary
be
hu-
to
test
Moreover,
at the
economics certainly
present time
cannot
-
beings
jected
analysis.
of
e
cannot be sub-
^
tube
called
economic b
Dr. James J.
s
can¬
described
as
with
but the
a grin that he knew
questions never change
than
do! This is truer
answers
ever
today.
As
I go along in my remarks,
will undoubtedly recognize a
number of implicit assumption.
you
There
I
three, however, which
might be placed on the
are
think
table at the start.
that
for
shall
we
number of
a
First, I
see
assume
continuation
a
of the cold
years
vyar between the East and the
West. This will have, of course,
the
important
effect
of
keeping
Federal budget at a high level
our
though we are able to avoid
a major nuclear
war. Secondly, I
am
assuming that the next 10
years will witness increasingly in¬
even
tense
competition
American
between
Soviet
and
the
economic
"dismal."
systems, which
will provide a
This may have been a fitting ad¬ strong driving force toward eco¬
jective back in the 1930's in the nomic expansion in both countries.
days of the "mature economy" and Thirdly, in their efforts to culti¬
the "stagnation thesis," but today vate the good will of the Ameri¬
economists talk in the optimistic can electorate, the economic poli¬
terms of "expansion,"
"growth" cies advocated by both the Re¬
and
"economic
progress." Eco¬ publicans and the Democrats will
nomic theorizing is alive with op¬ probably not be wide apart. In¬
timism.
deed, after just
^
reading the Eco¬
In keeping with the spirit of the
day*! I am going to let my own
far-
a
metropolitan centers. We
onrush
are
a
further
of technological change.
clearly upon the threshold
large
are away
behind in
meeting the demands of
expanding and highly mobile
population for schools, roads, hos¬
pitals, and public improvements
generally. Here is a vast field for
our
state
and
local
government
ex¬
Still
another
important
force
late with
of
As
I,
1966?
appreciate better than
of the most important ques¬
you
one
tions
for
life insurance today is
likely to be the behavior
of the general price level in the
Finally, and not the least,
we
next decade.
I do not need to tell
have the growing recognition on
the part of the general public of
you
the government's responsibility in
unanimity not only in our busi¬
ness, but also among economists,
helping to maintain stable pros¬
perity. I shall say more about this
presently, but it is certainly a
;
powerful force toward expansion.
labor
our
that
a
the rate of output per man
hour, and the average number of
hours worked per week.* Assum¬
continuation of the historical
seems*
likely that GNP in 1966 will
proach
$550
billion
in
1955 dollars.
Perhaps
in
few
a
this
'
you
level
which
markets.
can
a
of
o;.
*
of
will
For
one
at
illustrate
for Ameri¬
means
$550 billion GNP
GNP
ments. 0 The
basic
first
ch&nges
is
have
that
and
future
by labor, agricultural price sup¬
ports, and escalator clauses
of
various types which will not only
prevent costs and prices from de¬
clining :af
any
given level but will
thing, with
might ex¬
we
Whenever I become involved in
more
also
serve
More important, however, is
thought that under the Em¬
the
gradually to push them
ployment Act of 1946
our
it will perform on the
My view of the future will
how
economists
were
laid
they wouldn't reach
end,
end
a
to
con¬
clusion. That may have been true
in the past, but it is not today,
order that you may have
idea of the ground I am go¬
In
j
some
I list the following
questions to which I shall address
myself.
ing to cover,
will
What
national
we
nomic
-
be
the
size
of
in 1966?
enjoy rapid
economy
continue
to
growth and progress?
is likely to be the
What
havior
of the
between
Are
now
we
our
Can
eco¬
general price level
and
toward
keeping our national
humming at "full em¬
ployment."
It is widely agreed
that the goal of full employment
is incompatible with economic sta¬
bility sd'that it is anticipated that
ers
economy
government pressures toward full
employment are bound to produce
an upward push on prices. Thirdly,
the argument is made that the
tense international
political situa¬
with the resultant heavy
Federal budget, will be an impor¬
tant
contributory
force toward
higher prices.
tion,
There is
of
no
gainsaying the power
these
the
arguments, particularly
political pressures for main¬
taining full employment. Today
are living under an Adminis¬
dedicated
to
preserving
we
tration
Contiued
on
or
have
we
learned
how to control the business cycle?
And, finally, how, if at all, will
the nature of our national econo¬
my
Be
the
Size
Economy
of
address
by Mr. O'Leary at the
Saratoga Meeting of the General Agents
and Managers Section of the New York
of
Life
Saratoga Springs,
N.
Y.,
or as
1966?
by
tion, what will be the size of our
national economy by 1966? Can
continue to enjoy rapid eco¬
nomic growth and progress? First,
let
267,856 Shares
take
us
look at the economic
a
Miehle
growth which has occurred in the
United States in
The
the past 10 years.
National Product, or
Gross
ices
produced
United
billion in
$283
annually in the
amounted to $387
States,
1955.
billion,
In
1946
GNP
was
Class A Common Stock
again
1955 dollars. In
ing the past 10
in terins of
other words, dur¬
years we
have
Printing Press and
Manufacturing Company
the total value of goods and serv¬
(Non-voting, Par Value $7.50 Per Share)
en¬
joyed a real increase of $104 bil¬
lion, or 37%, in our Gross National
Product
measured
as
purchasing
power
assume
that
would
lion,
mean
the
that
amount
still
to
in
constant
dollars.
will produce a similar
next
If
we
I
am
Price $24 per
decade
Share
growth, this
GNP
in
1966
about $530
bil¬
in terms of
1955 dollars. The question is, do
we have any good basis for
ex¬
pecting this continued growth?
we
Association
or as a
The offer is
expressed
convinced that
there
Copies oj the Prospectus may be
States in which the
obtained from the undersigned only in those
undersigned
may
legally offer these securities in
compliance with the securities laws of
the respective States.
are
good grounds for anticipating that
change in 1966?
State
offering of these securities for sale,
solicitation of an offer to buy, any of such securities.
made only by means of the Prospectus.
circumstances to be construed as an
to the first ques¬
now
shall
have
at
least
as
much
Listing these questions reminds
growth in the next 10 years as we
me of a reply made by one of
my
had in the past decade. The rea¬
colleagues back in the days when
I was teaching economics. Year sons for this outlook are several
after year in his examinations he and are undoubtedly familiar to
employed the same identical ques¬ you. For one thing, we are now in
tions. Finally one day when he the midst of a period of substan¬
tial growth in our population, with
was-drawing up the usual exam
fairly conservative estimates of the
I pointed out that the undergradu¬
ates kept a file of past examina¬ Census Bureau indicating that our
population will increase by 25,*An
no
offer to buy,
Our
we
would
1966?
likely to have another
big depression
National
Turning
can
be¬
This is under
an
What Will
Underwriters,
Feb.
17,
1956.
000,000 in the next decade bring¬
ing the total to 190,000,000 in 1966.
The rapid increase in new family
formations, which has been taper¬
Smith, Barney & Co.
Blyth & Co., Inc.
Lee
Glore, Forgan & Co.
Higginson Corporation
White, Weld & Co.
February 21,1956
Dean Witter & Co.
Federal
Government, whether Republican
or Democrat, will direct its pow¬
for
me to distinguish between the
Republicans and the Democrats.
in
economy such as the growth
collfedtive bargaining strength
Of
that it
about the
you
probably be far wide of the mark
but perhaps it may be useful in
stimulating your own thinking.
The
choice
of
a
10-year look
ahead is at least long enough for
you
to forget my
conclusions.
Speaking about "conclusions," you
know it s commonly said that if
all
I confess
certain
occurred
our
up.
■.
will be interested
breakdowns
better what this
ap¬
terms
level will
steadily
moderate but persistently upward
price movement.
This idea
is
based Upon three principal argu¬
fair degree of accu¬
trends in these variables it
great deal of
upward.
Hardly
anyone expects that we shall have
runaway inflation
but rather a
racy,
a
a
the general price
move
force, which'can be cal¬
culated with
that there is
is getting more and more difficult
national economy—what it
be like 10 years from now,
way.
last month
specu¬
our
will
sued
riot and
run
-
,
forces leading to dealing out these billion dollar
economic
expansion
could
be figures I am always reminded of
mentioned. Our population will my wife's query—If you econo¬
Many
come we
*
Between Now and
ex¬
savings from financial institutions pect personal consumption
such as life insurance companies penditures to run as high as $360
billion in 1966 as compared with
on an advance commitment basis.
about $250 billion in 1955.
Dis¬
Still another force contributing to
the growth is the intensified pace posable income available to indi¬
viduals would amount to about
of business competition which we
$380 billion compared with about
see everywhere today. The drive
to get ahead by reducing costs not $270 billion in 1955. Getting closer
to our own market, on the basis
only stimulates business invest¬
ment but also widens the mass of the relationship which has ex¬
market. Another force makingTor isted in the past decade, life in¬
surance premium payments should
expansion is the wide diffusion of
amount to $13.3 billion in 1966 as
well-being among our people and
their insistent and growing desire compared with about $10 billion
There certainly should
to
earn
more
and
live
better in 1955.
which has led to the development not be any lack of market for our
of mass markets to match mass product.
production.,,
smart, how
what is
penditures.
ing
contributing to economic, growth
is the recent development of longrange investment planning by in¬
dustry. We have all been excited
recently by the multi-billion dol¬
lar investment
planning of the
steel industry, chemical industry,
and
automobile
industry.
This
long-range investment planning is
facilitated by the regular flow of
so
9
What Is Likely to Be the Behaviot
of the General Price Level J
The
rapid obsolescence of fixed capi¬
tal, which also paves the way for
large investment expenditures by
business and industry purely to
maintain productive capacity. y
are
nomic Report of the President is¬
imagination
,
have
aren't rich?
out of
move
size of the Gross National
the road to heavy "capital
expenditures by business and in¬ Product in 1966 must, of course,
be a matter of speculation. It will
dustry and
fosters. • a
dynamic,
economy.
Moreover, it leads to depend basically upoh the size of
was
plied
to
mists
will continue to
opens
This
that—the
bound
the atomic power age. We all
know that technological change
and
science."
is
It
mass mar¬
of
that they always knew the ques¬
days of Adam Smith
Thomas Malthus, economics tions he'd ask. To which he re¬
"dismal
broadening the
We
Back in the
the
expenditures
investment by
consumer
business
scientific knowledge and
stronghold of opposition to inflation, Mr. O'Leary
describes the problem as one of his industry's most important
questions—Regardless of Administration in power. The dynamic
growth forces are seen to be: population changes, research
and capital outlays, long-range investment plans, |>ace of
business competition, middle clasl growth, and the government's role in maintaining prosperity.
'
:'
to
now being spent for in¬
dustrial research, currently at $5
billion, it is inevitable that we
shall have a continued growth of
is the last
/
and
further
continue to be highly mobile and
money
sees:
(1) 37% increase in real Gross National Product; (2) busi¬
ness cyclical swings kept within tolerable limits; (3) persistent
moderately rising price level; and (4) greater government
economic intervention. In asserting the life insurance industry
;
stimulus to
reaching expansionary effect upon
housing and durable
consumer
goods. With the large amount of
Life Insurance Association of America
insurance economist looks 10
ing off recently,-; is slated to get
under way again in a few years.
This
should, of course, give a
ket.
By JAMES J. O'LEARY*
Director of Investment Research
Prominent
(945)
Kidder, Peabody & Co.
Lehman Brothers
Bacon,
Whipple & Co.
page
14
The Commercial and Financial Chronicle
10
Thursday, February 23, 1956
.,.
(946)
only wouldn't invest as the savings and loan associa¬
Congress has forbidden national banKs and '
member banks from investing any more than their capital
We not
81. Y. Sec. Dealers
Equal Competition fox Savings
To Hear Zeckendorf
"William
viid
Knapp
executive
business
By GAYLORD A. FREEMAN,
Incorporated, nation¬
ally known
ment concern,
the
will
be
the
at
the
of
York
New
Security
Asso¬
Dealers
ciation
at
the
Biltmore
on-
Friday, March
1956.
9,
Mr. Zecken¬
dorf,
as
Presi¬
dent
of
&
porated,
instru¬
in
securing
United:
The
the
nations for New York City.
present
of
home-site
East River
the U. N.
assembled by Webb
was
Knapp for the development of
!r.-City, a great inner city proj¬
ect, including office and apart¬
ment buildings, opera house, con-mtion
hall, etc.
This project
abandoned
vas
of
favor
in
objecting to the savings and
as "Saving? Associa¬
tions,'7 we should refer to them—and encourage the press to refer
to them—as "Loan Associations," which is what they were meant
to be—and
tions is not a happy subject nor is it an easy one
discuss.
It is fraught with emotion and is
ing policy, the lean associations earn relatively much more than
do.
(2) How Much of This Difference in Ability to Pay Is Due to ThisDifference in Federal Income Tax
with
N.
which
world
the
to
far
it
discuss
to
chance
the
have
that
in net.
also acts,
company
fear
I
for
more
that, together, we can think about
of
the point that the
from
start
associations
loan
and
by the banks on the
times ours, the loan associations
much higher rate. Obviously, our more conservative
lending policy is the principal reason why we cannot match the
rate they pay.
tan
sav¬
substantially
pay
cities
principal
hand and the sav¬
other in the
Seventh and Eighth
Milwaukee
firm
The
Peace.
was
en-
exclusive consultant in
\ \q
reorganization
of
Vincent
J ctor's real estate holdings from
5 142 to 1945, holdings which at
i
time had a book value of
I
i%
1% t0P/2%
3% to
5%
2%
2y2%to
3%
l%to
2%
3% to3y2%
2%
Sioux
3% to
'
2%
City-
3
,
they
they
%'*?'""•
of the difference
1%"
will
You
associations
as
the
that
note
are
differential
3%
2% to2y2%
Memphis
in
higher
1%
2%
or
•
The loan association,
paid by the savings and loan
instance. We can express this
3%, but actually in terms of the rate
rates
,■
every
or
This being so, let us
can
we
consider:
"ntatives for the National Secu-
1
v
i
"ties
and
by
H. J.
The
cause
Mr.
J aadquarters in
answer
they
exemption has not been present in the typi¬
some time.
The loan association has long
ceased to deal exclusively with its members and, on the contrary,
dealers with the general public as does an ordinary stock corpora¬
tion
incorporated for profit (such
Some
a
higher
courts
to limit the
is fairly simple; they can pay a higher return be¬
earn
as
a
commercial bank); hence,
the underlying reason for exemption no longer exists.
return.
They
earn
a
higher
be
to
of this change and a
aware
were
few attempted
exemption by saying:
it
"...
return
because:
New Haven, will
the
cal loan association for
'
Higher Rates Than We?
Jr., President.
Dunn, who will make his
?n,
taxed?
lastly,
are
(1) IIow Can the Savings and Loan Associations Pay So Much
it
Simon-
mutual funds,
of
Series
we
(6) What should we do?
wholesale repre-
announced
gs
that
rebated to, and realized by,
profit is
or
But this basis for
(5) What would be the effect of taxing them in the identical way
G. Sellers Smith, " Jr.,"
i i Philadelphia,
Pa., have joined
3 Yiional Securities
& Research
and
income
any
members rather than the corporation.
(4) Is this difference fair?
Vincent P. Dunn of New Haven,
l
stock,
*
%
taxation.
Why are cooperatives exempt? Historically, cooperative organ¬
izations operated for mutual purposes and without profit, such as
agricultural or labor organizations, mutual savings banks not hav¬
ing a capital stock and building and loan associations have been
given preferential treatment by the Internal Revenue Code.
tions
income taxes?
ment?
like the mutual savings bank, was for
form of cooperative and hence exempt
a
Why is this so? It is generally supposed that such associa¬
are mutual buying, lending or selling groups.
They merely
make rebates of price (or interest) to their participating members
and do not have profits as such. As they are corporations without
commercial banks?
(3) What is the actual difference in Federal income tax treat¬
lat'l Sees. Research
considered to be
years
from federal income
(2) How much of this ability is due to the difference in Federal
iljinn, Smith, Join
arporation as
,
ment of Commercial Banks and Loan Associations?
1%
paid, they pay 100%, 200% or 300% more than do we commercial '
banks. That is the primary reason that they attract savings that
would otherwise come into our commercial banks.
than
i
in. tax treatment.
(3) What Is the Actual Difference in Federal Income Tax Treat¬
(1) Why is it that they can offord to pay so much higher rates
?mn.,
higher returns. They pay these higher returns because
They earn more primarily because they follow a5
than we banks do—not because >
'
^proximately $50,000,000.
C
pay
earn more.
less conservative investment policy
2% y
4%
rather than the
great differ¬
in tax treatment, which accounts for the
Thus, it is apparent that the primary reason the loan associa¬
are taking the savings business away from the banks is that
1%
1% to ,,; 2%
is due to
be sur¬
tions
2%
l%to
,
as
2% to 3y2%
Chicago
Little Rock__.
Moines__.
pay
in earnings.
3%
1% to 11/2 %
Des
It is the difference in investment policy,
ours.
ence
iy2%
Louisville
has
aged
4%
21/2% to 3%'%
3y2%to
i%
.
1%
2%% to 3y2%
Detroit
<
of
Differential
Associations
1/2%tol1/2%
y2% to
i%
___
Indianapolis
Knapp is real estate adviser to
1 v.e Rockefeller family. The com-
ranal
Jr.
difference
St. Louis
<>.
j
G. A. Freeman,
Rates of Return Paid by
Banks
this difference in ability to
prised at how little. If the commercial banks had virtually es¬
caped taxation in 1954, as the loan associations did, the relative
earnings per million dollars of share accounts—or deposits—be¬
fore dividends and interest on savings, would have been: loan
associations $37,283 and banks $16,276. That is, even if we were
taxed alike, their earnings would be more than twice the amount
Federal Reserve Districts.
City
a
Of course, some of
one
the
of
pay
the inequitable difference in tax treatment—but. you may
ings and loan associations on the
oc-
advised a variety of
^anizations including Time, Inc.
(-Jnee 1938), the Columbia Broad<
sting System, New York Phil] a r m o n i c - S o c i e ty
Gimbel
j-rothers, the Willard Estate in
Washington, D. C., and the Carj agie
Endowment for Interna-
$37,283,10 and the insured banks had earnings before interest
reserves of only $11,404.11
and
the ques¬
With earnings of about three
will
I
ision, as real estate consultants
i~) corporations, estates and india 'duals.
The president of Webb
nny
t,
1954, for each $1,000,000 of share accounts (or deposits),
had earnings before dividends and reserves
In
tion.
r
j
,
.
are
the loan associations
ing the problem. Today I hope we can bring
to it less heat and more light. In short, I hope
Savings and Loan
on
that accounts for the difference
-
not unlike. For each $1,000,000 of
deposits or share accounts in 1954 the operating expenses—before
interest
(dividends)
were,
loan associations $13,060,8
banks
$16,474.9 Thus, the difference in the investment policies carries
through to earnings available for interest, dividends and reserves.
in
us
Treatment?
earnings rather than any major
gross
Comparative expenses
to analyze or
the past have expended
emotion than intellect in consider¬
of
many
I-or porated.
The
is this difference in
It
.
ings
U.
are.
we
higher rates of return to the saver. This point
is
clearly illustrated in the accompanying
table which shows the comparative rates paid
(rganization purchased the prop<
ties from Webb and Knapp, In-
themselves
to
The net effect is that because of their less conservative lend¬
Nevertheless, I am pleased
highly complex.
1T.
1b.e
referring
difference in expenses or taxes
fbe
N., Mr. Zeckendorf offering
property to the United Naat
any price the organiza¬
tion was willing to pay. Mr. John
3\ Rockefeller, Jr., heard of this
refer and
donated
$3,500,000 to
associations'
loan
between the commercial banks and
the
b'ons
that market.6
This suggests that instead of our
income taxation upon the competition
the savings and loan associa¬
of Federal
The effect
Knapp, In-
c o r
was
mental
order to maintain
Webb
Zeckendorf
William
Chicago
larger earnings, compared to commercial
30th...
°
.
.
liquidity of sav¬
ings and lean associations. As a part of the emergency H.O.L.C.
Act of 1933, Congress authorized the organization of federal sav¬
ings and loans for the primary purpose of providing a market for
mortgage loans and it continues to encourage their growth in
Congress does not require the same safety or
savings and lean associations'
banks, to: (1) higher
mortgage portfolio ratio—96% against 39% of respscii/e
savings; (2) lesser liquidity obligation; (3) liberal lending
policy, and (4) inequitable disparity in bad debt reserve
allowance.
Welcoming application of taxes to associations,
since 1952, as a step towards more equal savings competi ion,
Mr. Freeman finds even identical taxation would not reduce
associations' competitive advantage.
Advocates increasing
reserves so increased capital funds and reserves would allow a
larger return to the commercial bank saver.
-
dinner
annual
funds will be safe and available.
at'.ributes
banker
Chicago
speaker
(or 60% of time deposits) in such mortgages.5 Why?
Congress wants the banks to be liquid—so that the savers'
and surplus
Because
JR.*
Vice-President, The First National Bank of
real estate develop¬
guest
state
And Federal Income Taxation
President
of Webb
Zeckendorf,
rnd
tions do—we couldn't.
clear
seems
that, when it
substantially mutual
and
(the association) ceases
as its
chief business
adopts
dealing for profit with the general public by the methods of
an ordinary savings bank, it is no longer a building associa¬
will make his head«-carters in Philadelphia, serving
(a) They invest virtually every dollar of their savings in
loans, and
(b). All. of their loans are long-term and high-rate mort¬
gage loans.
Assistant to Vice-President G.
At the end of 1954 (which is the latest year for which we have
Smith and wholesale rep-
figures), savings and loans associations had $27.3 billion of share
accounts and $26.2 billion of real estate mortgages; that is, they
had 96% of their share accounts in long-term high-rate mortgage
basis, some bank groups, in 1951, made a heated attack on them in.
Congress and attempted to have them taxed as we are taxed—-
loans
Revenue
i erve
i
j
as
Smith
4 'ellers
tentative John M. R. Morton in
which com-
Eastern Territory
1
ie
]
rises
the
states
of
i
t
(
yxvania, Virginia and West Virjiia, as well as the District of
oiumbia.
3
<
]
to
joining
associated
\7t3
Company
in
with
their
Bache
savings entrusted
"
With Southern Inv.
Vick
"ith
has
Southern
become
connected
Investment Com-
l?^y, Inc., Johnston Building.
..
!
1
\
1954, we commercial banks had 61 %3 of our
deposits in cash and U. S. government securities. The savings and
loan associations had only 15%4 of their share accounts in cash
and governments, yet
C'.
.
to us, we
As of the end of
effice.
\
Revenue work toward taxation of the loan associations
strictly
Conference
of
..
the
5
Bankers
Association,
Savings
and
Mortgage
Statistics,
March,
Annual
Loan
Report,
Bank
1954,
p.
of
Act
on
established
on
Title
1935,
"We
basis
II, Sec. 208.
Prescott
Sen.
75:
p.
should
that
will
Board, Combined Financial Statements, 1954, p. 15.
-
Bush
in
have
lend
%
the
the
of
83rd
law
Congress in Hearings
established and the policy-
the
all
encouragement
possible to
people to put their money into depositories who are going to lend it privately
for the building of homes so as to get this home building business off the back
of the Government where it has found itself for some years." Of course, Senator
1954)
held
that
fact
all
billion
$18.3
over
insured
of
commercial
mortgage.
banks
(F.D.I.C.
<as
of
Annual
the
Report,
end
of
1954,
41.)
p.
7 In
of
a
overlooks the
Bush
the
Section
case
of
federal
5(a)
of
the
9
Op. Cit.,
F.D.I.C.,
Loan
11
Pnj.C..
Bank
Cit..
pp.
Owners
130
Up
Cit.,
ard
pp.
14
and
E2.
I
^38.
Building & Loan vs. Millzr, Collector of Internal Revenue,
143 at 147 Aff'd 285 F. 1020, Cert. Den'd., 262 U. S. 754.
101
(1922)
from the list of exempt corporations under the then
of the Internal Revenue Code.
By removing
Section
pd.
as
130 and 138.
Board,
Li.lev
F.
On.
this appears to be a clear violation
Lean Act of 1933 which specifies that
"Federal Savings and Loan Associations."
Cit., pp. 14 and 52.
associations,
Home
associations shall be known
8 Home Loan Bank Board, Op.
13
123.
Congress did amend the Internal
association to federal income
beginning after Dec. 31, 1951.18
of
Statement
975
280
2 Ibid.
3 F.D.I.C.
4 Home
Banking
SB
on
12
1 American
1955.
proper
the federal income tax—not
10 ti^me
1956.
a
the savings and loan/associations are now subject to
a special or a different tax but pre-
Thus,
-
on
Code, subjecting the loan
such
by Mr. Freeman, Jr., before the Regional Savings and Mortgage
American Bankers Association, Kansas City, Mo., Jan. 30,
*An address
.
they claim they are liquid.
competitive matter.
a
as
tax for the years
6 See
the
offer to the public.
Philadelphia
CHARLOTTE, N. C. —Marving
But, rather than letting the courts and the Bureau of Internal
do not invest nearly as
much in mortgages because we think they are not sufficiently
liquid tG give us the degree of safety which we feel we should
Of
&
(Special to The Financial Chronicle)
tion, entitled to be exempted from income taxation under the
statute in question.12
of 29%).2
National Seirities, Mr. Dunn was New Engmd Manager of the mutual fund
epartment of Lee Higginson Cororation in Boston and Mr. Smith
Prior
c
"
(this is not unusually high for them as the average for all
savings and loan associations over the last 20 years has been 89% ).1
Orli the other hand, we commercial banks, at the end of 1954,
had $46.8 billion of savings and only $18.5 billion of real estate
mortgages or 39% of our savings in real estate loans (and inci¬
dentally that was higher than the average for the past 20 years
Delaware,
Southern
Michigan,
few Jersey, Eastern Ohio, Penn-
3 Maryland,
j
■♦
Connecticut and Rhode Island,
i
fr.
i i
3
wholesale representative
them
Volume 183
Number 5510... The Commercial and Financial Chronicle
(947)
cisely the
same
banks
subject to.
are
tax
JBut, there.is
and
the
income.
law
that
commercial
we
,
.
corporations
are
taxed
Ciying Need for Hard Money
We banks, like
other corporations, are allowed to
deduct from gross income our business expenses; that
is, salaries, ;t 'vrent, supplies and other business costs, including the interest that
we
pay'i to
of
our
savings depositors.
our
losses;
.
We
can
lion.
You will recall that Ameri¬
dollars
can
eigners
Cattle Company, Inc.
Colorado Springs, Colorado
citizens
bad loans. Or,, as an alternative^we can deduct
income, and set aside, an amount to cover losses on ;;i*.
bad debt§ which we are likely to suffer in the .future/. This
is/; j
deducted as an. "addition to reserves for bad debts
coin.
Gold price increase to $100 and return to hard
money advo¬
on
,
-p '/ft. The
loan associations, which are otherwise/subject/ to the>^i
same tax provisions as
we, are, however, allowed to deduct a mudhiiii?
larger amount front taxable income and add to their jreservea for/;"
^
in liabili:ies to
foreigners will be cashed
in for
cash
to
short-term Treasury obligations.'
'Tor
I
gold
American
as
denied
for¬
of
in
that
During
the
right,
last
or
articles and
month
I
reports of
interviews with nationally known
•
gold because
.foreigners have restricted their American investments
hands
and
you
are
have read
cated by Mr/Griffith to solve all present agriculture, mone¬
tary affairs and foreign problems. Believes over $12 billion
.from taxable
the
redeemable
the right to own gold or gold
even
•
in
are
although
Elsinore
also deduct the amounts,-.,
*n
«
^eigners are approaching $12 bil-»
By b. barret Griffith*
their
on
'
•
The
difference!
one great
business
gross
tax
same
11
economists
on
the subject of the
adequacy of The United States of
America
gold reserves.
If
our
gold stock is adequate and satis¬
factory,
why
recently
has
there
bad debts.
It is'this single difference, the amount which can
been so much discussion about it?
bei^VMlthough' 4he handwriting on our present agricultural surpluses,
deducted fronv taxable Jncome and added to reserves for bad debts;
If economists can read the
the
jminda
wall ; is ^ominous,
is is now'on the
there
payroll of the UN of
that" distinguishes the tax treatment accorded the ? loan, associa¬
foreigners and therefrom con-,
nothing apparent today in agri- diving; comfortably in Rome andtions from that accorded our commercial'banks. It is the
elude that those foreigners under
only
culture,;: ihonetary -affairs, or for- devoting his thoughts to solving
difference in the way we are taxed. >
no circumstances would withdraw
v
a '
j/.
/ v
eign problems the
problem
of
surpluses
by gold from this
country, why have
H
which
/
Let us stop at this point for a moment and recall what we
could spending
huge additional funds those same
commercial banks are allowed to do in the way of
foreigners restricted,
deducting from
not be solved for that purpose.
V
'..Y their American
investments
to
taxable income an amount to put into a reserve for bad debts,
Turning to the foreign situa¬ either cash or
by a
higher
vfry short-term
;
As a result of several successive steps,14 the
Treasury Depart¬
price for gold tion, it appears that problem is Treasury obligations?
•>
ment has interpreted the Revenue Code to
provide that a bank
and return to the direct opposite to the one of
.
.
-
make annual additions to
can
nTr
the end of the current year.
There
First, the aggregate
cumulative
on
d
1
XIXv/XXCj
" agricultural surpluses.
'
»
11
i
the
of
for
V*?;
reserves.
built up over the years, from
this
kind, less actual
losses
seems
to
be
world
the reluctance
of
some
foreign problem
to
seems
population
increased
eco-
people.
by
to
seems
about
all)
Apparently
many people
and the Middle
suggested
reserve
B. Barret Griffith
balance and the
'
maximum
Thus,
deduct
•further
reserve.
deductions
the
once
aggregate
of
amount
our
reserves
i
reaches
'
Since these reserves are at the present time based on each
bank's loss experience, there is no
uniformity in the amount of
deductions. But according to figures prepared
by the Federal Re-./
times
the maximum
addition. .;;
current
cate
20
of
worst
Chicago16 loss experience for all member banks in
years, 1928-1947, was 8/10 of 1%
(0.8%).
Three times
this
average loss experience is 2.4%.
Thus, the
maximum amount that can be built up from such successive
years
of deductions is 2.4% of loans. Inasmuch
as
the banks, as of Dec.
>
31/
our
hard
eco¬
abundance.
a
The
-
to .our
agricultural
solu-
problem
that} Mordecai Ezekiel,
(0.2%)
Adjustment Act
of the drafters of the
one
loan association
a
can
of
deposits
<
of
into
lands
,
and
production.
payers
told
are
„
.
tural
by
factories
.
,
fathers
of
Miners'^'coriference
Colo., Feb. 3/ 1956.
,,
surpluses at home
and
the
gold
per
upward
ounce;
beginning of the taxable year.','16
valuation
to
to
extend
the
farmers
the
and
trade
spur
to
same
ranchers,
all
of
its
At the end
from
taxable
of
1954
the
position of gold, there
Joins
several
interesting and noteworthy factors.
Our present monetary gold
Total
income—hence, it does
t0ta'S ab°Ut
are
^
King Merritt
SPRINGFIELD,
Jenkins
bUUOn'
with
has
King
Woodruff
monetary liabilities to for-
Mo.—John
become
Merritt
■
Since
f
;
-
reserves
of
amount
such
losses—and since loan
aside
set
are
should
reserves
to
absorb
depend
future,
the size
on
associations have much
Building.
$3,645,000
Louisville and Nashville Railroad
losses,
of
the
Equipment Trust, Series O
;
probable
at risk—and
more
3%
at greater risk—than we do, perhaps they should be
.permitted to
build up greater reserves in relation to share accounts than we
Equipment Trust Certificates
•
(Philadelphia Plan)
in relation to deposits. Since their loans are riskier than
ours,
perhaps they should be allowed to build up greater reserves in
can
r.
relation to loans.
Since
more
of their
income
comes
To
_
To be
loans, perhaps they should be allowed to deduct a somewhat
larger portion of their income than we—But the great disparity
between
the
deductions
allowed
to
loan
$243,000 annually March 15, 1957 to 1971, inclusive
from interest
on
.
mature
associations
and
guaranteed unconditionally as to payment o] par value and dividends by
endorsement by Louisville and Nashville Railroad
Company
those
allowed to the banks is grossly unfair.
They
can
They
►
build
deduct 100% of income—we
build
can
of
reserves
They
can
reserves
12%
of
MATURITIES AND YIELDS
deduct 10%.19
share
(Accrued interest
accounts—we
can
to
be added)
./
■
reserves
;v
;
'
.
build
can
1962
3.00%
1967
3.05%
1958
2.90
1963
3.00
1968
3.05
2.95
1964
3.00
1969
3.05
2.975
1965
3.00
1970
1961
;
re-
2.80%
1959
/:
of 12% of loans26—we
1957
I960
of deposits.
1%
build
of
can
3.00
1966
3.05
1971
"
of 2.4%
serves
That
*
of loans.
'
:
-
just isn't fair!
Totally aside from the question of competition for the public's
savings, it isn't fair to require us to pay such taxes when they
escape.
We are in effect bearing a part of their share of the
burden.
tax
•
*
;
is
by
proven
an
examination
taxes paid by the commercial banks
;
on
of
the
the
one
14 See
Internal
Internal
and
15 A
16
Aug.
17
dollar
bank
Revenue
Revenue
can
13,
Service
select
Prepared by
Service
any
Mimeograph 6209
Ruling 54-55 (issued
amounts
of
(issued
on
April
on
page
Dec.
8,
1948.
13
Actually,
Section
19 On
20 On
accounts.
of
share
the
the
593
of
basis
the
of
Internal
Revenue
DICK
&,
MERLE-SMITH
FREEMAN
& COMPANY
of
figures.
that their
the third
accounts.
loans
quarter of
E. POLLOCK
Code.
annroximately
equal
their
1955 their loans were over 100%
R. W. PRESSPRICH
GREGORY &
&
CO.
SONS
L. F. ROTHSCHILD L CO.
THE
ILLINOIS COMPANY
INCORPORATED
WM.
1954
assumption
At the end
1954
HALSEY, STUART & CO. INC.
8," 1954).
years beginning with
1928.
Department, Federal Reserve Bank of Chicago,
in 1954, because many of the smaller banks do not find the
reserve
method attractive, the commercial banks in the
aggregate deducted,
as
additions to such reserves, an amount
equal to only 7% of net earnings
before taxes. F.D.I.C. Annual Report, 1954.
18
'
of these Certificates are subject to authorization by the Interstate Commerce Commission.
Offering Circular may be obtained in any State in which this announcement is circulatedfrom only
such of the undersigned and other dealers as may
lawfully offer these securities in such State.
1947)
20 consecutive
the Research
3.05
The
hand, and the loan
Continued
• -
3.05
,s
if.
Issuance and sale
...
~
This
,
February 23, 1956.
&
CO., INC.
McMASTER
HUTCHINSON
&.
CO.
W.
associated
&
(4) Is This Difference In Tax Treatment Fair?
/
to
(Special to The Financial Chronicle)
average
few loan associations had reserves of 12% of share accounts—
hence very few loan, associations paid any Federal income tax.
to
tax provisions.
Turning briefly to our mone¬
tary situation and particularly the
-
ratio of loan association re¬
(and undivided profits) to share accounts was 8.3%. Very
serves
-
income
net
not need to pay any Federal income tax.
as
suggested
'
duct
and
miners
Thus, until its reserves reach 12% of share accounts (which, in
short, is equivalent to 12% of deposits), a loan association can de-
a
(3)
of
;-//•:•/-'
;
to
and
by
Representa¬
tives, Jan. 11, 1956, with supple-,
ment to it to include gold
re¬
House
year
and reserves at the
en¬
serv¬
Memorial passed
Colorado
.
botb
have
-
St°Ck
'
sPent
of
$100
endorse
as
come
American tax¬
additional
be
exchange
would
men
both
by realistically
commodity prices and
the. value
that
_
at
limit of
food
a
problem of food shortages abroad.
Agricultural
the, founding
withdrawable accounts of its depositors at the close
exceeds the sum of its surplus, undivided profits,
or
such
their
re¬
and consequently
12% of the total
"amount by which
an
hungry
and dollar dole until such time
one
do.
It is allowed to deduct
areas.;
doUars must
as
be the recent newspaper
of deposits.
arrived
adjusting
Meantime, American
should give away and
the
all
right to trade and sell their goods
to foreigners at agreeable
prices,
areas
taxpavers
medium of
a
which
ices; (2) permit American farm¬
ers, ranchers, and businessmen the
solve the problem of our agricul¬
being submitted
tion
is
moment, let's look at what
under-developed
.
dollar
couraged to trade goods and
of
of plans
port
a
cultivation
and hard
equal confidence and thus be
by
humiliate
who*
may
Now for
those
representing billions of dollars in
taxpayers
investment,
resulted
that, using 1954 figures, the most that
deducted fropa taxable income was
only 10% of net operating earnings1? which is only 2/10 of 1% '
/
the
convertible
in
and build plants for the later pro¬
duction of manufactured goods in
depression
surpluses,
Ex-
finance
in
land
appar-;
the average bank could have
,
would
money.
are
offered
emplifying/the empty hollowness
of their deposits in loans, this 2.4% of loans
equals about 1% of deposits.
ihis
entirely
com-
from government
managers
/ apparently were not
divine.
1954, had only 41%
The net effect of
manage
/ In agriculture we
ently suffering from
Bank of
serve
the
three
and
to
and
be,
(1)
the
They suggest
American
citizens
thus create
are
Wash¬
ington experts seems to be a plan
whereby the American taxpayer
nomic'and monetary affairs. Facts
'suggest that gold miners, ranchers
Z and farmers together must advo¬
and
year
failures
pletely
subject to a limitation on the amount we can
a further limitation that we cannot make-;
are
we
each
permissible
-.admit
East
to
appears
to
that is available to foreigners and
Washington to
one-half the difference between its
Far
to
of.
some
same
hungry,
now,
today,
However, solution to the problem,
the
least
at
give
monetary
managers in
East
to
problems
self-evident.
have
nomic
in
available
currency
solution
today's
Second, in the first
and
hard
one
debt
year a bank adopts the reserve for bad
method, it can add to its reserve only one-third of its
maximum permissible reserve, and in the-second
year only
as
they are (agri¬
surpluses at home; hun¬
people abroad; and lack of
gry
be
million
150
facts
cultural
j*1
•
of hungry
populations throughout a substan¬
tial part of this world. Since 1945
problems
,
From
Reduced to
i
denominator,
common
related to the problem
tion to today's
charged against the reserve, cannot exceed three times the;
average loss experience factor applied to outstanding loans.
j
the lowest
.
.
stacle to solu¬
deductions
our
reserves
deductions
.
*1
;
two limitations
are
vl
rr.
a reserve for bad debts
equal to its
20-year35 ratio of loan losses to loans, times total loans at
worst
Co.,
Inc.,
«tv
(948)
/
made,
serves,
-
seasonal
Federal Reserve's Credit S
■'i
V
WILLIAM McCIIESNEY MARTIN, JR.* ;
By
System's objective
of bank
Credit restraining activities
reserves.
<
.
(
1IU
T
-
from
credit
nomic
W'
1955.
.
1SL
Report
in
operations
moderate
,
in
the
Government
cial
there
of
Hf
occurring
the
since
had
hart
that
interest
intPrPst
been
hPPH
jn
marked
....
...
APri1 from 1 k to l-/4%.
needed.-for
reserves
Ther r*oal
and
for
is
growing
a
economy
rising- standard
a
the nation.
Monetary
living
of
-
•
'
1
.
.
closely
policy,
co-
ordinated with debt management,
that
0f
itself
the
but
maintain
the
all
wish
for
continued
but
not
upon
the practice of prudence and
on the
i
;
_
i
business and
we
rests
progress
Government
on
by
and
oro^ress
Responsibility
have.
to
cannot
steady
sustainable economic
alone
attainment
to
objective
contribute
can
self-
part of leadership
...
... , .
finance, in labor,
Flexible Action
■
and in agriculture.
the year 1955 was
by the flexibility and
v Indispensable
.
The operation of free markets
adaptability that are essential in* *
Stock
Margins
: the
*
'
*
•
'v*
Y" ,'*•*
•
.
'
"21
"I
4 y% .J '
•'
'
*
«
f •- .y
A Kntm
-
4Ua'
"
*
4
•
ri ocp
a
'
J
Ai
flip
that
<
The .exact
deflation.
this purpose is difficult to measure
with fine precision ahead of time.
•
in
mrto
jngs
of
summer
~
~ '
1954,^the Federal Reserve Banks
their
discount
rates
in
'!
f'
'W
funds avail-
reserve
effect
0f higher discount rates in keep-
raised
whole,
*
vlm
11 y
gratifying
performance
g e n e r a
the
able to the market, and the
for
recognition of the rise in market ing down member bank borrow- restraint
rates
ratPS
1955 as a
of
some
change in commerreserve
positions.
In
bank
collection
securi-liquidity, the temporary nature of
little net
was
of
process
through the Reserve Banks. ;/
At
the
year-end
the >, money
market continued, firm
in tone
because of the large demands for
the second quarter of
Federal Reserve opera-
year
in
still
re-
,
commercial
banks
to
approximately
$5
of
,
•*
ill
the
detail
Reserve
serve
f.
Eco¬
describes
year
undersupply;
*
administration of monetary- may < be.« counted upon to bring
amounted
ThP BnarH hf governors rni.pd
Policy if u is oil' play its proper/about many.essential adjustments
to
X110 iDOalQ
OI Governor* XolSeQ
imoli
lihfViAfit fho
m+orironfi'nn rtf
/jbilliph or about. 3%—a smaller
inJ B°ara oi governors
role." Above all, timeliness* is; without theidirefct intervention of
AvClX* Xi
" Vi
X
1'liaCJlvV of
expansion than in 1954. Loans and ™arJra
lfvital. In ivviV0£/vvv X think Xi XCllX' Governments in * **Vr •* performance V/X.
retrospect I vflllilV it faif
The loo* fa\xr
-curl-,
investments, excluding United
kd
' say that the transition Of/.the economy in the last few years
1 States Government securities, rose lies
to wjwo in-eariy janu- monefary- policy from ease jb-^wst:ifies,-i:i?rbelieve,-? renewal of
by $12 billion or 15%-4he larg- a^y
lniatgApjii. restraint in 1955 was ' effected%faithin /monetary oetion as an
ments
Presi¬
dent's
the
the
or
amountof
banks'reserve accounts for checks
ties market were small, and
Treasury.
the rise in total loans and invest-
developments
T^he
emphasis
the
toward
ease
tions
Loans and Investments
monetary
during
in
,,
For
makes
change
This
1955.;
shift
a
During
the
bank borrowing,
and
tion
year-
float, which reflects the
volume of credits to the depositing
straint.
K/irpnitrinrf
Konlr
nvnraoi'
I should like to express
appreciation of this opportunity to
report
to
you
on
the nation's
April,
Federal
of
Federal Reserve Banks on member
On behalf of the Board of Gov-
bank
unusually
large
and
sustained
seasonal increase in Federal Re—
marked
Board head discusses: (1) shift in commercial
bank portfolios out of Governments;
(2) rising demand
deposit velocity; (3) non-money market effect of increased
Government securities purchases; (4) unusual float rise; and
ernors,
ally heavy volume of business and
financial payyments at the
season,
member
end. Reserves also became available about this time through an
quirements.
(5) aid to international trade financing and to the
volumfe/bi bank/reserves that will
safeguard 'the econorny from, the
money market of the exception- oversupply that makes for. infla-
fromthe». Reserve
resulted. Borrowings, which
and
and twice raised security margin re¬
creased discount rates,
in
-
averaged about $300 million in
December, 1954 and January, 1955,
increased to $500 million in March
r
successively in¬
borrowings accompanied by
bank
member
the
for
additional
;
Banks
;
in increased
seen
pf 1954. I. emphasized in my
ary
purchases
of - securities^ statement & yotr- that the: objec- •/f
under repurchase agreements with live of Federal Reserve policy and
dealers in Government securities' action-fisr;to:- makfe V available
borrowing
■<:
prudent
Depicts
providing hard-to-gauge right volume
as
reduction
tern's portfolio consisted of. temporary
reserves
than; usual
less
some
cooperation with debt management, and
business, labor, finance and agricultural leadership.
requires
;
•
,
finds indispensable monetary policy
Board Chairman Martin
the
the
^from
mands and required reserves were
;
y
;
Federal Reserve System
currency
-
associated with
the seasonal deposit decline. Since /The purpose', of these -purchases
the declines both in currency de- /was to moderate the effect on the
required
Chairman, Board of Governors,
91
and
circulation
v
available/ by
return
February-23, ,1956
The Commercial and Financial Chronicle... Thursday,
•
12
yP*tP*P
.'
®t-
i
!
StyCK,/
IIlaTKvJ
vtramhfltr
'
o e -1
onnrtnriiw
+
-
oonn a v*v i a
1
vooa yto Hxt k*,'A
enonc o KTki
voorc
♦Vinitcrli Hv
tin mpano
/
of the nation's
except for
i
the
past
M r M
»|
i
w.Mcc.Martin,jr.
U7
•
and you
have already had testimony dealyear
t
shift from Gov7,
j
.
1 v. •;
i
- Ih
the .early part 5of, July,, the;
System
purchased ;/Government,
#
worked" to restrain; bank lending.!seasonal needs, including Treasury,
important phases.of the' •<•/•- : .borrowing in the market. From-
ing with
subject The only supplement I;
will
billion,.^mainly in .shorts
.
issues. This
r,,.tiwi/ient securities to business and
agriculture,
over
/•-,' •' ^ ;/v\Y/tohave>• that
/ Federal Reserve Objective'
b t iiiis m'^bout the
j-fl. did not. take part a year agO>,^
V I expressed here two
consumer loans :.caused : bank securities, to supply banks. with in;your bearings on the Economic ^utiire which T exoressed here two
nqUidity^0decline, which in turn reserves; to
meet ' temporary. Report but the preceding Febru- years i
$7
economy,
for
offer
information
is
background
your
small chart book
a
r- j Money and Velocity!
the increase in totai bank
Like
.
- ,•
the
cred^
key
domestic
to the changing
response
economic
situation.
financial
rofe
,
to Restraint
Ease
In
.
,
_
.
^
outside
Hcnosits
rfPrnona
f
ing
•
times'
ing from the Reserve Banks rbse,
in September to a daily average^
level of about $850 million, as
compared with an average of $400
million in June. Interbank borrowing also increased during this
lead-
year
a
y
in
Federal Reserve policy
1955
flecting more actiye use 0f existmaintenance of ease, ing mcmey
Deposit turnover in
market to restraint finanoiail'-f.pnters was also faster
inflationary
developments. than -n ig54 Ag compared wjth
shifted from
in the money
of
During
be
to
fostering
policy
System
January,
continued
directed
while
recovery,
Q.n.noi.n
able
main-
Beginning
expansion
/n
for .the
over-all
industrial
and
however,
February,
1955
in
taming conditions m credit markets that would avoid unsustain—
the increase in time
1954
was
much
less
deposits
at
com-
mercial banks and about the same
mutual savings banks. Growth
savinsfs and loans shares was
at
•
mounted,
as
,
output approached capacity and
f—
inflationary -pressures
appeared,
-
■
Planners • Olllft Signals, Says Rukeyser
• - ■
- •
o .
.
Change in Federal policy from caution to increased
•
merchan-
/
dising zeal noted by commentator. ;Says regulators are now
maneuvering to foster sales, instead of sitting on the tid of a
boom. Cautions against "headline thinking,"; over-magnify-
*
ing immediate short-term fluctuations./
GRAND RAPIDS,
Mich.
—
The
J
•
^
y
lude to mortgage guarantees. The
.
.
,v
..
significance of recentr economic impact of the new ruling js to
at 11 Reserve Banks and 2V4% planning by the Federal authon- shift gears, and -the regulators,
at the'Federal Reserve Bank of ties in the housing field has-been instead of sitting on the lid of a
1% to 2%
Cleveland. The 2V4%
established
at
rate was to shift sig-,>
air Reserve
Banks
i ■ v
nals from cau-
establisned at all Reserve Ranks nais irom cau- •
by early September. Thus in this tion to in -
peridd restraint on bank credit creased merexpansion was firmed.
:
chandisingR||i!„n
r
(. Added
ze a
This
».
m
$1 B,ll,on Governments Added view was exIn !ate September, the System pressedby
resumed purchases of Government
boom, are now addition, thelte is
In : maneuvering/to
foster sales.
plans to
homes.;-/*' v''
official encouragement, of
modernize
old
/-;
No
,
.1
Merryle Slan.—
Basis
-■'<*•.
For Criticism
.
.
greater
:
than
the
in
i
"Inconsistency of rulings should
be interpreted as a basis for
criticism.
adverse
On
the
con¬
securities. Between that time and ley Rukeyser,
the
trary, management of the national
and
year-end more than $1 .billion
been added to the Federal
business columnist, au-
economy
Reserve portfolio of securities, of
Shift in Governments
.
not
had
somewhat
remainder of the year, as
demands
period. In early August, discount
however" rates were raised from
centers
192
from
-
System's holdings of securities de-;
clined and member bank borrow-^
active
the
in
rise
statistical information on, money supply, namely, the deand international eco- mand deposit and currency hold-'
nomm developments over,the past
jngg Q^ consumers and businesses,
yean My prepared statement will' ,wag moderate. For the year
the
relate mainly to adaptations in
money supply rose about $3.5 bilFederal
Reserve
operations
in non or ieSs than 3%. The turnover
of
^«#iob
- - - - • •
mid-July-to. fate September,; the. CCOnOKIIC
thor, and eco-
nature
through indirect credit
must, in the
related controls
of
things,
be
flexible.
A
classic sponsor of such procedures,
wMch a^ut *350 million were nomic conthe late Paul M. Warburg, intel¬
munitv
Darticularlv
business securities acquired under repursultant, in a
measures
were adopted to mod-^^
lectual father of the Federal Recorp0rya'tions S t a t e and loca! chase agreements. These opera- speech here at
erate the pace of
credi-e*Pf"3'onn governments, pension and trust "pn,s o£fset seasonal drains on the 67th an- M- v. n„w... ■ serve System, counselled that the
Federal Reserve actioni wught to
funds> and individuals> added sub. bank reserves and did mot ease n ualconven-- >
= * - - 'way to avoid a bust is to sit on
keep growth in bank
stantially
to
their holdings
of J!?e
money market.; In mid- tjon of the Michigan Retail Lum- the bulge during a boom/ In light
nnW/ nrnZt
c in^L"
United States Government securi- Nr,°^+mlier'
resi™lni oa bf^ ber Dealers Association. .
0f the letting down in demand,
?!!!/,
in/r/Zin; ties, including the short-term isxPan s 1 ? " ,wa? afln
Mr. Rukeyser said: "While busi- the Federal housing authorities
pressure
on ^ank
reserve
posi- sues sold by .banks. This shift in
,^ 2/ w /t /a'nesB executives, b a n k e r s, and felt that the time is here to relax
Nonbank
sectors
of
the
com-
nn
tion^
borrowed funds became
available
readilv
interest rates rose.
and
users '
^ess
^m^inal
to
ciably
Lending Restraints
In
of
Dursuance
restraint
bank
on
nolicv
this
credit
of
in
order to meet growing loan demands from their customers, had
Commercial
to sell
ment
banks,
large amount of Governsecurities to non-bank
a
holders.
creased
also
in-
frequency
and
banks
These
the
both
holdings
their
to
ore"a
^T^fnan^onfv
Federal
to
produce
a
gradually
increas-
iorcea
the
lending
sought to moderate the impact of
seasonal factors on the money
oy
successive
discount
*TeRtimonv
7,
rates
bv
Joint Committee
Feb.
their
on
Mr
on
inwonMP
increases
charged
Martin
hpfnr*
in
by
tb*
the Economic Report,
1956.
Housing. Administration recently New Deal and the Fair Deal Dr.
Gabriel Hauge, the Presidents
economic advisor pointed out that
market. In January and February
tbe
these indirect methods retain an
optimum of decision-making in
the hands of the individual customer.f
"in view of the continuing de¬
shortening maximum terms for bate, especially in banking quarhome mortgages from 30 to 25 ters, as to whether consumer
the face of a more stringent years. The latest adjustment re- credit totals are too high and
money market than was foreseen stores the 30 year limit, and has whether payoffs are inadequate,
when the terms of the Treasury the effect of reducing monthly it will be well to alert the inrefunding
were
decided
upon, payments by home owners. How- dividual
to the desirability of
Another unforeseen circumstance ever, the moderately increased self regulation through prudently
was an unusually large volume of down payment requirements are relating
fixed commitments to
maturing issues held by investors continued.
personal income, actual and prodesiring cash, which made them
"The fact that the earlier re- jected. A review of credit exindifferent to the terms of the strictive action had brought re- perience during the d e p r e s s e d
policy actions/of the was
to facilitate a
large-scale
Reserve in 1955 tended Treasury refunding operation in
Although
This restraint was rein-
restraint
some
confined almost entirely to Treas-
,
'
activity
Dur
vear
,
■
ury bills. At the end of November, Put
^ a green light. These
Tr/ lit tn liS however, the System entered into supervisory Federal agencies sigextended more credit to priyate commitments to purchase $167 naled that the danger of a runbarrow®rs^n ?
FJocV1?^f million of new certificates when away inflation in housing was
years: ^^ally sharp was the issued 0n December 8. The specific over, and they expressed this
rlse m mortgage ana consumer occasion for an acquisition of cer- viewpoint through reversing the
credlt*
tificates rather than Treasury bills cautionary action of last July in
their
of
,
sllfht1/',
borrowing ing degree of restraint over much
from the Resprve Banks
The fact °* tbe year> most of the System's
open market operations, including
that the banks tound it necessary
repurchase agreements with
to borrow did, in itself, impose dealers in Government securities,
magnitude
legislators have been debating restrictions. It should be noted
whether consumer debt is too that the Eisenhower AdministraTreasury Aided
high and whether the terms are tion prefers to rely on these indiDuring the
outright
to° loose» the Eisenhower Admin- rect controls as an alternative to
h
°f Government «fernritie^ istration through its Veterans Ad- direct price fixing a»d rationing,
u Ff,dpral ReservP wprp ministration and the Federal which were at times used by the
Jrvf Banks
Federal Reserve Banks.
of
Government securities by market
expan-
sion, the Reserve System reduced
slightly over the year its portfolio
of United States Government securities.
ownership of Government securities represented a reversal of
d e v e 1 o p m bankss added appree n t in 1954 when
commercial
syStem
sold,
or
allowed to exchange offering.
$1.3
-
mature without replacement,
Unusual Float Increase
billion of United States Government securities. This was mainly
for the purpose of absorbing
re-
Toward the close of the
as
suits was shown in decreased
monthly applications to both the
1930s'shows that the credit buyer
tapered off new commitments as
Veterans Administration and the conditions changed just as the
cash buyer did. As a result, pay-
year, Federal Housing Administration
is usual, additions to the Sys- for appraisals of homes as a pre-
offs
on
consumer
credit
were
Volume-183
Number 5510... The Commercial and
Financial Chronicle
satisfactory,
to lenders
more
the ;loss
and
ratio
.
much less than
was
Continued from page 11
,
on
195243
conventionally approved
older types of commercial and in¬
dustrial and governmental credits.
"In
an.expanding
it
economy,
relieves shock to be prepared for
record
breaking totals.
to
come
significant
are
more
expected
in¬
flected
the
boom
in 1955 and in
part
of
action
automobiles
housing in the first
1955
in
in
re¬
before
July.
restrictive
The
letdown
in
housing demand and the current
calming down in automobile pur¬
chases will inject self corrective
into
processes
the
statistics
credit."
consumer
of
"
.1,
t
Mr. Rukeyser, who is author of
"Financial Security in a
Changing
World," pointed out that the na¬
tional economy is
strengthened
individual
buyers
exercise
of
the
and
5
•j
$2,388,000,000
outlast
which
should
the
$10,853,Q00
i.
only to the banks—but to all
part of the loan associations'
made
taxed
obligations
they bring into being.
we
a
Dividends
'
••••
e
Such
financial.'^
unity
."
:
Recently
/.
Vice-
World,"
Smitn
Weston
been
Consultant
a
by
has
retained
the
national
Annual
Report
Surveys
and
Oscar-cf-Industry Awards which
he
originated and has directed
for 15 years.
the
of
reports
will
loan
associations
165
165
vi)
11,198
/
,
.
f
5,165
■
would make the loan associations not less com-
>
taxed precisely; as we banks are,
were
would they be the most
course
likely to follow?
the
pay
;
and he is also the one who benefits
and he is more certain to
•benefit by the latter course, the interest
their
addi-
'
' "
additions to
tend to encourage
of the shareholders would
the loan association to follow that course most
shareholder, and the least advantageous to the
beneficial to the
..tax collector;
As you can see
is the loan
■■
from line viii. in the
their
reduce
following table, the most
directly advantageous course from the present shareholder's
"
.
be
22 For
.7'
Bad debt
v.
.
Continued
on
1
point^
page
14
of
present tax
'•* :y
dividends-—..:.
and
$37,463
7 "7
;
'
;■
•.
taxable
tax
It would have loans of
but
before
than
more
adds the balance
Now let
the
reserve
taxes,
$1,000,00021 and net income (after
The offering is made
pays
($11,198) to its
make
It
of these securities
"■
••
>
-
February 21, 195*
-if;:-v
■
,;• j
•
r-v*y■■■•
Jl'.
■* •
300,000 Shares
;
(\
—
were
allowed
I
.if1 i*Vj
that is, assume the
Koppers Company, Inc.
only
aver¬
reserves
Common Stock
of
Vz of 1% of loans—or $5,000.
($10 Par Value)
might elect to keep
up its additions to capital funds
curtailing its dividend rate.
if it meant
any
ex¬
reserves.
deductible annual addition to
a
"
a
allowed to the banks
now
age bank could
solicitation of offers to buy
only by the Prospectus.
NEW ISSUE
or reserves)
of $37,463. At
dividend of $26,085 (a little
income taxes of only $180, and
pays
consider what-it would do if it
us
income.
dividends
association
2xk% rate), it
a
;.,
30%
This advertisement is neither an offer to sell nor a
.
penses
applying the common rate of 52% even though in
rate, for banks or savings and loan associations
on the
first $25,000 and 52% on the balance
actual
less,
^
,
present the loan
are
we
the
,
vi. Net after tax added to capital reserves-^.-— _165 '
v" vii. Total additions to reserves (ii and vi)
11,198
y
size
somewhat
-
11,033 "
26,085
>.-r.-v. 1 ;■ -..7 (zy2%,)
subject to tax—345<,».
(52%)—.:—
180
Income
this
.
reserve
■
simplicity
distribution of
^7'V7.;
7
reserves
its
of
be
"
.
$1,000,000 of share accounts; under the
per
case
would
they most likely to do?
"v
As in the past, selec- :
best
180
res.
cap.
fits by additions to reserves,
better off if the loan associations main¬
no
\
ii.
weekly magazine to continue the
■tions
the
iii. Dividends
1
Mr.
Smith
as
a
benefit if
i. Net income before
•
i
course
a
345
180
in theory at least, the one who bene¬
a
iv. Balance
Ex- I
n c
13'/*%')
Since the shareholder is,
present'dividend rate, and
us
earnings
re- r,
President of
"Fina
will
consider the average loan association's
:"law.::
Rector
ecutive
they
are
Of-
as
which
Which
have
signed
dividends
Let
Street, N. Y.
-
32,118
:
345
S
(52%)—-—
If the loan associations
will be, at an even greater disadvantage than at
present if the loan associations increase their dividends.
been opened
33
5,000
26,085
1
.
iv.the banks
,
at
banks
their
-
p in- investor
relations.
'
" 't
the banks will be
tain
management»"
fices
of
increase their dividend rates and reduce
to
the
,
co mm
$37,463
dividends,
Counsultants," a new
specializing in counsel to
and'
$37,463
——
Total additions to res. (ii and
vii.
which
Since it is the payment of higher dividends that
associations'present advantage,
:
Smith
rporat
fit to shareholder
and minimum tax)
petitive but FAR MORE COMPETITIVP^ihan iL present.
;
"
Counselling
co
rate
reserves?
r
Relations
firm
give maximum bene¬
is less
77.. 11,033
7—.4
Income tax
'
question.
to maintain their dividend rate and reduce
tions to reserves; or
,,
- •
; V
iii.
has
organized
will direct "Financial Public
and
An increase in
equal opportunity to compete
more
next
our
the
and
dividend rate (to
and divs.
res.
.reserve—
by the payment of larger dividends,
reduce
—
saver; or
ii.
,
,
Firm in Shareholder
Weston
debt
vi. Net after tax added to
interested in (and motivated by) a
also interested in achieving conditions
are
to
come
its share¬
(2Va%)
only
we
to
reserves
fcu-
them
to
.
Refalions
distribute
deductible
iv. Balance subject to tax—
'•<•M"v
cause
i.
Smith Heads
j
Net income before
111.
■b.-"''
Their Competitive Advantage?
to
after
all taxation.
escape
ii. Bad
a
'■■■-,
financial
be
and thus
income
net
(exempt if
Looking at the matter in its purely competitive aspect, our
question is — would taxing the loan associations exactly as we are
which
3%% rate)
a
D
v*
would have
we
is
tax law
terms
tures,
to
entire
n
(5) Would A Reduction in the Loan Associations' Reserves Reduce
impose on the construction
industry obligations to build qua¬
lity and endurance into new struc¬
its
'
.not
are
that
course,
Under present
3,977,000
4,391,000
and
prospects.
He
admonished that longer
mortgage
portunities
the third
than 12%)
•
Hence
elect
might
$ 2,485,000
savings.
statesmanship to
put their sights on long-term oo-
21/2%
a
virtually
burden.
justice,
under which
for
business
associations
reserve
*
-
re¬
the banks Is not reduced at all.
loan
holders
Loan Associations
695,000,000
786,000,000
907,000,000
Total
ate
fluctuations,
.
Banks
ing, which overmagnifies immedi¬
urged
from
.
.
(that is, continues
course
dividend but reduces its additions to capital
increase its dividend to $32,118 (roughly equivalent to an increase
other, since the end of 1951 when they first
$
We
desire for
association follows this
same
over
The
Amount of Federal Income Taxes Paid by
great tax
But!
crimination and self restraint. He
cautioned against headline think¬
short-term
the
on
That is grossly unfair—not
taxpayers for they are bearing
just share of taxes. '■
vY.;
dis¬
t^t?^d^t thg.;rate o&
by the amount of the tax), its immediate competitive ad¬
vantage
The law should be changed in order that these profit-mak¬
ing (and profit-retaining) corporations might pay their fair share
as
the
serves
became taxable.
big
remaining $6,378 of jiet-income is
If the loan
to pay.
associations
than
the
undigested totals.
The
bulge in consumer credits
7 If its
52%,22 it will add $3,062 to its capital reserves.
And Federal Income Taxation
The ratios
of'commitments
13
(949)
„.vuquy
even
handled by an independent board
of
judges.
In
annual
to
reports
surveying
each
Mr.
year,
'relations policies of
trial corporations.
has collected
than 12%)
As
libraries
materia]
of
-
stockholder
the
financial
rity analyst, financial writer and
associate editor, Mr. Smith in 1943
appointed
officer
and
director
survey
of
the
publishing
company.
A frequent
jects
;
of
lecturer
on
the sub¬
annual
reports
and
management - investor
relations,
Weston Smith is author of the
"Stockholder
•„
and divs.
Guidebook"
>
at
Income tax
v.
-
vi.
$37,463
11,033
Total
to
add
5,000
(2% )
345
12,912
180
6,714
res.
165
6,198
(ii and vi)
11,198
to
res.
the
cap.
of
sum
$6,198
its
to
11,198
capital
reserves
Copies of the Prospectus may be obtained from any of the several
underwriters, including the undersigned, only in Slates in
(which, added to an assumed addition to a reserve for bad debts
of $5,000, would equal
$11,198), would reduce its dividend from
$26,085 to $19,551 (roughly a reduction from over a 2V2% to less
than
which such underwriters
However, the loan association need not follow such a
It might elect to pay the same rate of dividend as before,
a
Relations
A
Public
tax law
if
Manual."
Relations
.
L Net income before
So¬
ii.
ciety of America.
Bad
debt
course.
(exempt
Maintenance
of the
Balance subject
(Special to The Financial Chronicle)
v.
is
National
ing.
now
City
with
East
Bache
Sixth
!
&
Co.,
vi.
vii.
_
Income tax
Net after
reserve
is
same
dividend
$37,463
$37,463
and divs.
__
—
__
__
_
11,033
5,000
_
___
26,085
<2'/2% )
tax
345
6,378
180
res.
165
3.062
(ii and vi)
11,198
Harriman Ripley &
Lazard Freres & Co.
Co.
8,062
:
added to cap.
res.
Assuming its
loans equalled
Merrill Lynch, Pierce, Fenner & Beano
Incorporated
Stone & Webster Securities
Corporation
Build¬
21
Goldman, Sachs & Co.
3,316
to tax
to
Glore, Forgan & Co.
Blyth & Co., Inc.
26,085
(52%)
Total additions
The First Boston Corporation
.
as
(2%^ )
Dividends
iv.
CLEVELAND, Ohio—Francis P.
secur¬
at present
•
Smith
dealers in
$26,085.
less than 12%)
res.
reserve.
iii.
Joins Bache Staff
as
legally be distributed.
C
Under present
and
past president of the N. Y.
Chapter,
qualified to act
~
-
He is
are
ities and in which the Prospectus may
2% rate), pay the tax and still make the $6,198 addition to
its capital reserves. Such a course would make the loan associa¬
tion materially less competitive than it is today.
a
...
"Shareholder
share
19,551
(52%)_
additions to
order
Price $53 per
$37,463
to tax
Net after tax added
In
addi¬
reserves
present)
26,085
res.
reserve
iv.' Balance subject
vii.
serving "Financial World"
successfully as statistician, secu-
was
debt
as
( 2 V2 "/< )
After
-
Bad
iii. Dividends
information
community.
•
Net income before
ii.
result, he
a
and
to
sent
i.
indus¬
same
tions to
is less
reserve
of the country's
one
-communications
;
1,000
the
(exempt if
Smith recently completed his 10th
vannual review of the shareholder
Arcduction In
dividends (to make
tax law
5,000
v
largest
"*
Under present
addition
share accounts.
•i
-■
firi
i
■
-i
X
.
Union Securities Corporation
White, Weld & Co.
14
The Commercial and
(950)
Continued
from
allowed
reserves
13
page
duction in the
The
And Federal Income Taxation
cf view is the payment
of
greater dividend and the
a
elimination
If Loan Associations
v
;
.
If Loan Associations Were Taxed
Retain Their
v
Precisely as the Banks
Are Today
C
Present Advantage
'
B
A
.
£
;
i
j
Under Present ■' A Reduction
.
Maintenance of
maximum
D
Div. Rate to Give
Max. Benefit
i/,
tions to Res. as
as at
to Sharehldr. &
than 12%)
at Present
Present
minim, tax)
./ '/
■
and
Bad
li.
dividends
the average
debt
—
5,000
5,000
11,033
5,000
26,085
reserve.
111. Dividends
19,551
23,085
Balance
Income
v.
Vi.
Net
subject
vii.
after
Total
(ii
(52%
tax
capita]
6,378
_
6,714
3,316
of 4%
reserve
a
until
loans
of
Interest paid to savings
|
additions to reserves
in
Incvease
11,198
8,062
5,165
$30,749
11,168
$34,147
$37,283
loan
Balance subject
Income
and
Total advantages to
holders
(iii
depositors
reserves
to tax
_____
$37,283
The only deterrent to the increase in dividends, and escape
taxation, would be the fear, on the part of the supervisors, or
of the loan association management, that such a course would fail
to provide adequate safety. Would, however, this extreme course
be so unsafe as to prevent its adoption by a loan association man¬
agement (or supervisory force) that considers a 100% home mort¬
gage portfolio as both safe and liquid?
The assumed deductible
addition to bad debt reserves of lk of 1 % is a substantial dollar
It is equal to V2 of 1% of share accounts (be¬
share accounts). This an¬
nual addition to reserves for bad debts is greater than the annual
cause
have assumed loans equal to
debt reserves) in relation
to bank deposits24 and at V2 of 1% of loans is almost as large as
bank additions to capital (and reserves) in relation to risk assets,25
(if not in relation to the degree of risk) and indeed provides,
greater shareholder protection than that required by statute or
regulation.26
;
additions to bank capital (including bad
Our conclusion is that taxation of the loan associations on the
basis
same
that
as
which the banks
on
in their deductible
additions
to
rates
cause
even
or
(i.
the
Committee sent
We
who
the
skyline,
Williamsburgh Savings Bank headquarters at 1
Place, a building that towers above the Brooklyn
signst were put up announcing
a 3% rate was ex¬
The words 'paid four times a year'
pected for this quarter.
underlined."
were
The article
"For
this
banks
cculd
difficult.
be
Williams¬
burgh, which is one of the very few savings banks in the
country with a surplus high enough to make its profits subject
to Federal income taxes, is confident its earnings will support
the higher rate."
Thus,
a
we
that the fact that
see
such
mutual
a
has
bank
to
Federal income taxes does not prevent it from paying higa
pay
rates. The
same
would be true of loan associations.
reduction in the bad debt
would not make them
make
mistake
a
if
reserves
and
concentrate
our
efforts in
this
Concerned
as we
are
over
the loss of
sav¬
first goal is safety and
our second
is profits for our stockholders.
Size, the satisfaction
of having large deposits (other than for their
profit-making po¬
tential) is less important.
"
/
'
/
,
•
Hence, in considering tax legislation, as in considering any¬
thing else, we must ask ourselves what will make our banks safer
and bring our stockholders a
larger return—not how can we
best smack down
On this
we
.
competitor.
a
.Jank
Adapated
we are to seek more
equitable tax legislation,
an
increase in the
from data in F.D.I.C. Annual Report,
Board,
Combined Financial Statements,
additions to capital funds
24 Net
including
1954, Home Loan
1954.
reserves
of
all
,®n^°VIlted t0 4 10 of
of deposits in 1952 and 4/10 of 1%
i-.p.I.C. Annual Report for 1953, pp. 106 and 107.
25 Net
additions
nmounted
See
to
F.D.I.C.
9/10
to
of
Annual
insured
in
pp.
106
and
107.
*s
sat
Regulations
Loan
System, April
See
capital funds including reserves of all insured banks
1% of risk assets in 1952 and 8/10 of 1% in 1953.
Report for 1953,
or regulatory limitations on the savings and loan
that contained in Charter K, Section 10, to the e'feet that
aside 5% of their earnings (for the
purpose of meeting losses)
such time as their general reserves are
equal to at least 10% of the
ciation s share accounts.
See Ru'es and
and
banks
1953.
,26 The only legal
ciations
shall
15,
1954,
in—from
comes
p.
11.
N
for
the
/
Federal
asso¬
th*--'
until
asso¬
Savings
competitors
'
27 Insured
41
pp.
&
28 50
Commercial
48.
per
'
..
Banks
'■
in
_
'■
...
1954,
from
F.D.I.C.
.
increase in interest
$1,785 mill-on
paid
to
savings
Annual
Report,
depositors.
uo
to 4%
of
Continued
'V.,.:'
from
page
cur
economy
of
.
liquidation
.»
of
this
our
easily exaggerated, we
much
about
the
causes of business in stability and
we have
better knowledge today
learned
about
1954,
<
•;:7
be
can
have
how
ment pnd p
Federal
the
Govern¬
rivate business can cope
effectively with a decline in busi¬
activity through aopropriate
policies in the area of taxation,
monetary and debt management,
ness
and
.
All of
it did in the great
so large a
households in
tax-paving brackets to¬
day, swings in business conditions
automatically bring into play sta¬
bilizing forces. Moreover, although
9
encour¬
as
income
Optimistic Look Ahead—
Oni National Economy in 1966
have been
of
number
a
Also, with
depression.
proportion
An
sure,
deep de¬
elements
hrusing, to mention
At the same
am
a
such as un¬
employment insurance and bank
deposit insurance which we did
not have in the Thirties, which
will help to prevent our economy
from going through the wringer
divided
banks.
are
we
to
that
assurance
stabilizing
a
mercial
again
ever
the
into
*o bring loan reserves
gross
1-ans
by 4%
the proposal to spread the amount needed
four-year perioa.
'
•
'
Calculated at 41%, the actual rate paid in 1954
by all insured com¬
necessary
that
little chance
see
gression is not in the cards. More¬
over,
we
have fortunately built
■' 'v
,
,
busi¬
1930's, certainly not in the next
years.
The forces for expan¬
sion which I outlined earlier give
six years.
■,
control the
ten
//'/;•/
cent
discounts
30
1
•
how to
cycle?
experience
another deep and protracted de¬
pression such as occurred in the
.
.
question,
have another
or
have
we
likely to
depression,
likely
n^w savers or the liquidation of loans
or
I
Another
turn now to the
us
learned
ness
other
'
•
confident
a
few.
time, although I feel
we can
avoid
a
deep and
protracted depression, it would be
a
serious mistake to assume that
knowledge of the causps of busi¬
ness
instability and skill in ad¬
ministering counter-cyclical meas¬
and exhilarating in many respects ures have progressed to the point
where we can eliminate the busi¬
—we face the dilemma of a seri¬
erosion
in
the
cycle entirely.
ness
It is
source
a
aged by the.progress made in this
ous
direction.
dollar.
of
On the other hand, on the more
optimistic side, we have the en¬
couragement that our economy has
the
the Treasury that so many
achieved
able to prevent anything but
Nevertheless,.* I think
that it is highly significant that
even
under this Administration,
at the top of a boom we are be¬
ginning to witness a shift in the
direction of an easy credit policy
in
the
because
in
basis, if
would be much better advised to strive for
23 Source:
''
direction.
our
from
harder
Depression?
we
great
grossly
But the proper solution lies not in
weakening them. It lies in
obtaining the right to increase our own reserves and thus enabling
us to increase our total
capital funds and at the same time pay a
larger return to the saver.
us, I
commercial bankers
Let
are
us
competition
higi^risk, high rate, loans—every nickel the
the integrity of the dollar.
must recognize that
we
To
Treasury, the A.B.A. Tax
This is
we may
(6) What Should We Do?
ings deposits,
in
difficult
success
even
to Have
Likely
We
Great
taxpayers have to pay, in addition to our own,
their rightful share of the cost of
maintaining our government.
Consequently,
Hence,
cash
all
allowed the loan associations
materially less competitive.
we
invest
with
some
need to work
we
Are
higher rate of return—and hence to capture more and more of the
public's savings.
The problem is further complicated by the fact that
they pay
virtually no Federal income taxes and, as a consequence, we
over
smaller
some
thereafter.
America
of
achieved
to make our influence felt.
These advantages enable the loan associations to pay a much
and
continues:
faced
—whether that is six months
29
/'.//'
v
attainable
the
Furthermore they don't have to pay it
back when requested to do so but can tell the saver to wait until
The
year.
a
are
can
some
story states that
"At
but
a
public entrusts to them.
theory. The practice of the mutual banks tends
the point.
Those mutual banks whose reserves
savings deposits from 2%% to 3%
be
before
our
and the Life In¬
Association
have
we
Conclusion
In all probability, however,
maximum, and hence are taxed like our com¬
mercial banks are every bit as aggressive in raising rates as
are those not subject to tax.
The New York "Times'' (for Sunday,
July 10, 1955) carried in the financial section a story to the
effect that "It Pays Even More To Be Thrifty Now" pointing
out that eight of Brooklyn's 21 savings banks had raised their
Hanson
should
Members
and I
government
combat
to
surance
reduction
e., a
of them to maintain their present dividend
increase them in order to avoid the tax. As a
on
A.B.A.
strong¬
inflation is
redouble
must
Life Convention
questionnaire last fall/ This
was designed to discover just how many of you use the reserve
method—and what you need. Forty per cent of you responded—
and your replies are now being tabulated.
'
'
The 4% reserve, if achieved, will be of real affirmative value
to you in further strengthening your banks—and in passing on a
greater return to the saver. This is more to be desired than
weakening your competitors/ For if and when the loan associa¬
tions fail, we will all suffer.
12%
dividend rates
it
year—but
strengthen its presentation
So much for
substantiate
election
'
such taxation of the loan associations would not
materially reduce their dividend rates. Hence, it would not reduce
the competitive advantage which they now enjoy — and might
give them an even greater competitive advantage.
/../'/^//...%,/
exceed
344
an
consequence,
to
790
last
policies which promote inflation.
Through the Joint Committee on
Economic Policy of the American
517
earnings
the
of
we
efforts
depression 4% is very modest) but because such a change from
individual experience to a flat rate should be approved by Con¬
gress rather than be granted administratively.
It is unlikely that this 4% reserve will be achieved in 1956—
more
to
believe
598 30
517
might lead some loan
reserves)
associations to reduce their dividend.
it would
taxed
are
907
.
One
life insurance business
the
has objected to the proposal not on the grounds
that it is too liberal (for in the face of bank losses during the
($5,000).
we
flation.
holds of opposition to
The Treasury
of
amount
2% per year will on a compound
.basis cut the purchasing power of
the dollar by nearly 22% by 1966.
Nearly everyone today is seeking
an escalator to rise along with in¬
1,459
2,214
taxes
not accept the
continued rise in the
a
general price level, however mod¬
erate.
Instead, we must fight it
like a plague. Even a rise of only
446 26
.____
should
prospect of
927 28
618
the life insurance
in
we
business
$2,832
Dividends to stockholders
share¬
Vii)
and
add that
Loan Reserve
$2,832
taxes
However, I quickly
employment.
Proposed 4%
165
3,062
6,198
165
_____
primarily due to
,
Actual
Net income before interest
shall witness a gradual rise,
our fetish for full
,we
the
Retained
Viii.
I must, it would be my
that in the next tep years
guess
of loans would enable
180
to
vi)_
1%
345
180
added
tax
of
Disposition of Bank Income2''
12,912
i
reserves
and
general price level, and I
suppose
bank to further increase its capital funds, including
)
(2% )
(2 V2f/e )
345
tax__
to
4/10
of
32,118
(3 Va
)
lv.
of the
a
(by using the pre-tax rather than after-tax earnings)
and, at the same time, increase the rate of interest paid to the
saver by 50%.
///:<//;^;/'/-/;:;/y
;
:
■/• .
$37,463
$37,463
$37,463
$37,463
_
>
is, permit
reserves
Net income before reserves
:]
?
The allowance of such
Reserve is Less
,/
deduction
annual
aggregate reserve equals 4% of loans outstanding.
An Increase in
the Same
the Same Addi¬
(Exempt if
dicated it might, consider a flat ,4%. maximum; .that
Dividend
in Divs. to Make
Tax Law
'
I.
allowed to the banks.
Nevertheless, the A.B.A. Tax Committee, a wise and experi¬
enced group, approached the Bureau with a request to consider
substituting for the 20-year average experience—a reserve equal
to 5% of loans.
The Bureau said the 5% was too high but in¬
Associations Decreased
our capac¬
to produce.
So, perhaps we
may
be exaggerating the infla¬
tionary bias of our economy today.
If I had to guess as to the future
ity
however, an easy accomplishment at a time when
the government's expenses are increasing and the political pres¬
sure is all directed toward giving the benefit of any tax reduction
to individual taxpayers—the voters/.
Reduction in Allowable Reserves23
Increased by a
_
w
reserves
a
spectacular increase in
,
Is the Competitive Advantage of the Loan
/
to
This is not,
of all taxes.
or
in the
crease
run¬
inflation can be explained
large degree in terms of the
away
Springs last April came to this conclusion and indicated (I think
very wisely) that it would use its best efforts to obtain an in¬
Equal Competition for Savings 1
that the avoidance of
am sure
re¬
a
in White Sulphur
spring council meeting
its
at
seek
to
allowed to the loan associations.
reserves
A.B.A.
banks—than
commercial
the
to
Financial Chronicle... Thursday, February 23, 1956
of
a
mortgag^ field
moderate
downturn
building activity from
level.
to
residential
a
a
record
Already we have gone back
30-year amortization period
an
that
Ex¬
capacity.
have
usually thought
of this rising productive capacity
as
a
potent factor toward defla¬
tion.
In this day
of optimism,
government-insured and guar¬
anteed mortgages, and a' How of
government funds is being directed
into the residential mortgage field
think less in these terms but
through Fanny May. None of us
is, of course, against prosperity.
influence
on
But
we
live in
a
world in which
governments are convinced that
unemployment must be negligible
if they are to be reelected, and in
this sort of a world—so wonderful
the
and services.
increases
Economists
of
capacity to
enormous
produce goods
pansion
value
tainly the sheer
services
duced
mass
which
today exerts
toward
we
cer¬
of goods and
can
be
pro¬
important
holding down
an
inflationary pressures.
In
respects during the past ten
many
years
it has been miraculous that in the
face
of
the
avoid
a
that
in
that
the
achieve
we
Board
government
business.
ripples
believe
ress
Reserve
is
now
mild
Actually, I
economic
in
and
people
prog¬
the next ten
will not proceed on a smooth
path. I am sure that we shall have
characteristic ups and downs in
years
do not think we
possibility that
of the swings will be fairly
business,
can
rule
some
and I
out
the
wide.
The
analysis
of business cycles
art. and not a science.
The course of business depends so
much on consumer and business
is
still
an
(demands which have psychology that forecasting still
been generated we have been
to
Federal
believe
authorities such as
to
concern
runaway
able
inflation. I
involves
work-
a
large element of guess¬
rliffiriilt.v
of
timiiig
Thp
Volume 183
Number 5510
The Commercial and Financial
Chronicle
...
(951)
governmental
policies
to
offset
business fluctuations is illustrated
well by the situation
today.
business economists
ing that
and
are
moving
now
a period of business decline.
principal straws in the wind
The
which
in
forecast¬
are
have passed the crest
we
of the boom
into
Current Sfalns oi Legislation
Stock Gifts to Minors
Many
they point to
automobile
there
are
time,
the
as
dustrial
expenditures
for
plant
and equipment and
heavy expend¬
have
we
hand
on
and
weeks
ago
had
we
our
as
guests at the Stock Exchange four
teen-agers from Texas—two boys;
at
any
given moment are still
just not good enough to tell au¬
thorities like the Federal Reserve
a
ment
when
I
first
in
realized
sev-
not
continue
their
direct
ity of credit.
pany
in the
E x change's
: '
follows.
Federal
I
blind
any
Government
that
in
and
better
skill
in
better
planning,
ance
private
the
free
man
G. Keith
of
Funston
Junior
deep and protracted depressions.
Indeed, I am optimistic enough to
tion which enables teen-agers, with
most
tions which
of
the
the fluctua¬
I
would
like
than
namely, will the fundamental
na¬
change
They
It
inevitable
seems
next ten years
continuation
The
economy
is certain
that
in
in
the
has been with
us
for
a
life.
This
increased
tain
economic
employment
without
course
most
stability at
level.
To
a
this
inflation
will
al¬
inevitably
require greater
Federal intervention.
I beTeve,
and I fervently
hope, that this in¬
tervention
will
take
in
the
main
impersonal form through such
government
policy measures as
an
policy, and the like. We have,
of
thev
tem has
The
is
significant
that
fewer
people
today
question the desirability of having
the
Federal
Government
and
revenue
high-school students but
citizens and busings peo-
enterprise
minimum
no
of the Exchange
sys-
require-
pursue
expenditure policies
Thes- voungsters
learning about our free enterprise system by becoming a
part of it.
In a very real sense,
they are learning by experience.
are
be
understand
they
what
stockholder in
a
the
recognize
it
a
I
cannot
imagine
introduce
problems
business
a
world
better
nomic
character.
svstem
tion with
which
record
can
compile
in
competi¬
Alone with
the Foviet.
the pressures toward greater Fed¬
eral
intervention to
injure full
employment,
see
and
more
vention
mote
undoubterTv will
we
direct
more
inter¬
by the Government to
the
social
try to exnand
welfare.
on
I
pro¬
won't
thj*—you know
this situation better than I.
•
In
suite
ment
the
of
increased
presents.
intervention,
mainsnring
progress will
of
I
believe that
our
deep-seated
have
had
country
You
my
Up
it has been in the
past,
to
the
in
the
to
had
thought
that
As
As
this
our
economy
The custodian has broad
pow-
Yet today children in 40 of on?
states are denied the greatest single teaching tool that we have—-
care jduring the child s minoiity
and also to expend either income Ownership. And largely as
or Pnncipal for the child s benefit. Sult of that denial of the
*
0f
the
custodian
But the reactions of
lawyers
our
can
sell
securities
for the child he is limited
purchases
to
and
seeking
a
which
reasonable income
preservation of capital.
third
limits
parties
of
—
the
problems
giving
of
children
vast
are
in
majority
an
c:c
economic
excommunicated. It is ail
unfortunate
fact
that, unlesa
changes are made in our laws, tLv>
great majority of our children
wjn reach maturity with no real
the liability of
brokers, transfer
comprehension
of
what
it
take?
to make a. business tick and
to my P™posal ranged from polite agents and others—in their dealfaction to outright shock at the ings with the adult custodian are
lnnocence of my suggestion. Didn t carefully defined in the statute.
* know
con-
sense,
prudent
a
the
stock,
0ur
in any
securities
would be acquired by
man
a
a rc-
^ny secufltl<rJ. caa be gJven to venient right of direct ownership
child under this statute. While
The
it means to share in
0f
a
business.
whei
the fortune!
Even now too mar/
adults lack that knowledge.
Our
children will reach maturity at a
jn
sbort, this legislation would
provide a simple and practical
stcck to minors, they asked? Was
time when the capital needs ct
1 aY?ue that a le6al guardian way for a parent to make a gift our economy will be so staggering
)y0 *7 "ave t° be appointed to sell 0f stock to his child without the that, if they are not met willing!/
t .e stock ®ho^d
e^er ,see™ present legal entanglements.
from the savings of people ednwise and that the proceeds of sale
gated to the significance of stoclc
could not be reinvested in stock?
Approved by Eight States
ownership, they will be met fc/
0r' they incluired> was I planning
j publicly announced this draft 'government investment and govto set UP a trust for each child? statute just a little over a year -eminent ownership. In a critical
i_x
J*
would be the trustee?
o*.
±.
ag0 and it was greeted with en-
the economic education ci
sense
1 couldn t argue wifo the law, of thusiasm all across the country, our children today will determine
cour?e> -but \ couldn t help but individual legislators who had both the form and the 'substanc.i
wonder why in the greatest capi- tried to give stock to their own of cur economic system 20 yearj
^alistic nation in the world we children wrote me asking permis- hence.
:
/
had. maae ^ so diificult to make sion to introduce the statute in ' This belief in the cumulative
a slmPle g"t of stock to a child,
am sure
that most of
you
their
own
sequence
legislatures.
the bill
was
In
rapid
educational value of stock
enacted into
ship
here tcday> lawyers and bankers law in eight states from coast to
was
ably
owner-
expressed
earlic?
m0nth
by M. J. Rathbono,
president of Standard Oil of Nei7
this
experienced in the trust field,
wouM agree with the advice that
our lawyers gave me, that a small
Sift of securities to children under existing state law created
more Problems than the gift was
worth. I hope you will also agree
coast—Connecticut and New Jersey in the East, California and Jersey and Chairman of the JunColorado in the West, Wisconsin ior Achievement National • Camand
Ohio
in
the
Mid-West, pajgn. * "Ownership of securitic.3
Georgia and North Carolina in by teen-agers," he said, "is noththe South. They all joined in an ing less than a personal introduceffort to make it as simple for tion to our business system, a
their residents to give securities
M
,
,
Model
have devised,
we
,
,
Statute
We have proposed
a
"
free
have learred
lose
loss
of
our
dignity
of
dielr children as it is to give
S Savings Bonds or bank acA good start has been made and
is reassuring since the prob-
children. Under this proposal the this
simple act of registering securities
in the form prescribed by the stat-
lem that is involved
on
in
Tbe
so
of this legislation
states in the
year ^
passage
eigh[
have an
the long-
This-announcement appears as a matter
Continued
of record only.
$11,000,000
The
in
Teleregister Corporation
(Subsidiary of Ogden Corporation)
These Credits have been
arranged by the undersigned.
an
great
how¬
oAllen & Company
well from
economic
liberty,
the individual
and
cannot
February 21, 1956
firs|
gratifying and encouraging. But
the job will not be complete untU
every
parent in America who
may
important influence
home course in economics."
•
initiative
political freedom
be far behind.
U.
statute to simplify stock gilts to
particularly in the increase
we
"
model state c0-"n s*
the experience of other countries,
we
was
'
ers to mana§e the property in his
idea.
of direct government intervention.
if
lay
econom;.t
Most Children "Excommunicated *
the statute.
without destroy¬
of
enterprise. There are
dangers in such a course,
the
a
lav-
an
n„r
American
and
ever.
our
been
a
such
rights"powers and 'duties the philosophy and operations ei
' ??rerS„„a
? our emnnmie system,
John
as her
cuseconomic svstem.
iainer, donn, as ner cus
are spelled out clear'y by
this
way
spark
as
free initia¬
tive and private enterprise. This
system
of
democracy is the education ar t
indoctrination of today s youth 11
can,
point we
ingenuity in this
increase government
evolutionary
ing
tomorrows leaders, I believe the £
our productive resources will b >
owned by many more millions oc
Americans. And essential to
»
a
register the securities
astonish-
economic
be in the future,
company
gift for these
the
the
intervention in
As
govern¬
I
of
the
own-
Junior
"tt-tmarks by Mr. Funston at Luncheon
rf the Banking Law Sec*ton of the New
York
State
Bar Association, New
York
C ty,
Jan. 26,
1956.
is
attractive
gift of securities to
of
,
the American people to raise their
living standards and have an eco¬
an
number is increasing every day.
By the time today's children ar;
adult must do
way
to
than
thorpfore, appreciate
ment and expansion will, of
course,
come from a desire on the part of
other
means
children
our
employment.
toward full employ¬
'
.
company,
support for government interven¬
tion directed
listed
payroll and other ex¬
they appreciate the
importance of the profit system.
to
is
father
a
a
Achievement
encouraging high
Moreover, popular
direct
a
and
directed toward
.
a*e
of this prize
each year is always one of my
most pleasant duties as President
New
It
a
overlook
presentation
penses
and
proves
ments
to
a
ideal
enterprise
Now I
people
many
too * The free
ple
the turn of the century corporals
ownership has spread from a rela •
tively small circle of American i
to 9V2 million'people and thii
re-
child's
the
with the solution
are
meeting
Deal.
their
of
These young Texans may be teenagers and
course,
witnessed
some
big
changes in this direction since the
fewer
return
Achievement
too
general control of credit, budget-, They
ary
the
fuU
steer
to
personal and practical terms,
point
intervention
an outgrowth of
government's desire to main¬
a
handsome profit.
and girls divided $593
addition
Junior
long time,
will be primarily
the
port-
made
boys
In
particu'arly since the early Thir¬
ties, that is, more and more Fed¬
eral intervention in our economic
300
sold
original investment.
shall witness a
the trend which
we
of
and
among themselves and paid their
stockholders a 20% cash dividend
change.
some
More
Achievement
all
over
the
from
manufactured
our
b°cause it
the
Junior
able charcoal grilles at $9.95 each.
better to ask the question in terms
that there will be
fall and
spring toward
every
country participated in this year's
contest.
The
winning company
change in the
Perhaps it would be
will
in
2,000
Companies
ture of our economy
next decade?
of how the nature of
organized
are
the end of the School year.
last question which
to discuss
briefly,
one
These miniature compan-
liquidated
Economy
Change?
There is
>
busi-
small-scale
own
ies
future will be relatively minor in
I
their
nesses.
scope as compared with the past.
Will the Nature of Our
national organiza-
a
help of local businessmen, to
run
experience in the
we
It's
in
on
thought then
was my
an
pretty good
Achievement program and how it
operates.
be
share'
a
liSef
demonstrated sn
demons.iatca so rlearlv
cleauy.
you
know
rray
can
contest
Junior
youngsters whose interest in
high
school
assur¬
a
daugh¬
in
and the
make
we
the
—and it still is—that
would
or
in
company
Exchange. It
be held within tolerable limits and
be prevented from moving into
that
a
ership share
ter
can
believe
in
was
when I sug-
me
prize
Achievement
If
have
sen
business
have t^e
now
we
first
Company.
you
the
that business fluctuations
situation
Sock
a
of
strength
todlan
children..; This
Achievement
of instruments of control, and
through
dnnqudiea siaie
gested at that time that
by
this
management
The stock then belongs to Mary
Jones completely and irrevocably
;
brought home to
report
American corporation has evolved
certain way—"John Jones, as
for
Mary
Jones,
a
to
Junior
cycle. Through improving knowl¬
edge of the functioning of bur
economy
oi
the
issued
its power to eliminate the business
use
uecduse
nual
the
has
now
ajaitiiii
nationwide
skeptical
am
faith
a
because of th»i
which have already
the
with
holds
of
'
or
business sys-
our
that
reserved to
Custodian
laws which surround gifts of stock
com¬
contest to pick
the b e s t an¬
My thinking on control of the
business cycle might be summar¬
as
n e
OI
a
custodian
to
say-
taken place and the even greater
changes to come
The modem
eral years ago that these children
could
of t
t'r prize They were °££iCerS system becausein,our. eaP»a"stjc
nr'!%
partticip,ati0n of antiquated state
ized
a
is
I
in only 50 years into what is profcclose relative of ahly
the outstanding economic
the giver desig- phenomenon of our times.
SincT
Whoever
make
child
winning
time, if it should act at
all, to ease the general availabil¬
to
power
parent
to
present
about
whom
a
With this kind of legislation all
how promptly it should act at the
,
or
our
Two
child
a
securities
educating today's youth on value of business owner¬
ship in light of economy's future staggering capital needs.
knowledge of business conditions
*
to
child
a
future of
tern.
parent
gift of
a
make
to
giver
called
range
re-
vast changes
adult
securities
served
tance of
itures by state and local govern¬
ments.
The
factual information
which
other
nates.
to broaden stock
ownership. Says law is now on books of
eight States and calls attention to Treasury Department ruling
qualifying stock gifts for tax purposes. Emphasizes impor¬
con¬
tinuing boom in business and in¬
fiduciary
statute" permits
This
or
a
?
the
Exchange head reports on present status of suggested model
statule to simplify gift of stocks to minors as
part of program
offsetting developments
toward expansion such
child.
a
the
and
same
create,
between an adult and
lationship
power of management
President, New York Stock Exchange
declines
are
production
housing starts. At the
By KEITH FUNSTON*
would
ute
13
on
page
13
le
Financial Chronicle
The Commercial and
(952) ;
[The
growth of lower-fare stock issue. Its dividend payone of the out of around. 145% is conserv-
with the
THE MARKET... AND YOU
By WALLACE STREETE
The
stock
largely
a
market
waiting
game
the time neared
back 15 years now..
has
appealed
to
was
facet
that
this
many
of the market observers
for
is the
cal among
the specialties has
greater growth in for¬
been building up a following
eign demand than in domestic
big political answer of the
largely because of some large
year — whether
or
not the consumption, with some fig¬
figure comparisons, the chief
President
will
run
again. uring that the overseas de¬ one
being a sales level built
There was a lot of deprecat¬ mand could increase 8% this
up some 29 times over what
ing so widespread a notion year against a 4% increase it was
just before World War
that the course of the market in the United States. The in¬
II. Earnings, too, have perked
would depend on extraneous ternational operators appear¬
up smartly, making the issue
political factors. But at the ing on the buy lists for this one of the
likely candidates
reason include Socony, Jersey
same time there was little dis¬
week
as
any
of
the
presented
of the author only.]
"ChronicleThey
those
as
>
..
at
those
with
.
are
,
Continued from page 15
Machinery & Chemi¬
Food
covered
well
this
not necessarily
do
coincide
time
in
expressed
views
article
tourists' rates. It is
lower-priced issues with a ative, hence*
longer than average unbroken currently,
dividend
record
stretching
Thursday, February 23, 1956
w
.
Current Status of Legislation
the
for
a
to
until
take
the
a
decision
erratic
performances when
directors of the company ig¬
Steels, like the oils, were
nored any recapitalization at
also benefiting earnings-wise
their
dividend
meeting.
from a fast getaway to start
Among the more violent was
the new year, record opera¬
a one-day swing over a range
tions persisting despite
the
of nearly 11 points, which
slowdown in orders from the
would qualify as a full year's
auto makers. How much of it
range for lower-priced issues.
is due to consumers' stockpil¬
Long Bell Lumber was an¬
other that was able to join ing lest the spring wage talks
result in a strike isn't known.
the wide steppers on occasion.
The fact that International However, the demand for the
metal has easily taken up the
Paper has declined to get any
slack from lower car produc¬
more specific than that talks
tion and some of the industry
are
taking place leaves the is¬
estimates of how long capac¬
sue with a rather wide area
to
production will run are
now
reaching into the third
ity
roam.
*
*
»
Veto of the natural gas
bill quarter.
*
❖
plane issues in the face
of Washington questioning of
of
profits
on
company
defense work. The
derives about two-
fifths of its income from com¬
mercial
business,
prime
*
companies
where the Government, up
to
is by far its chief cus¬
tomer.
Apart from engines
now,
and
propellers, the company
has built up a good diversifi¬
cation including new products
in the electronics field.
stock
has
make it
to
The
reacted
from its recent
and the hubbub it raised over
unlike the
airframe
pricewise
high, serving
attractive
more
a
as
so
into
complications;
in
Here
without
a
the
York
gift with its burden of complexity
bill
dissenting
Mitchell.
MacNeil
tor
We
are
hopeful that before long residents
of New York may enjoy the bene¬
this
of
fits
already
legislation
templated gift. >'
'
,
Beneficial to Brokers
observation
brokers among
will
be
eased
by this legislation.
However, I would like to add this
comment. We do not believe that
this statute provides the
complete
securities
excel¬
vehicle for smaller gifts. But
all
to
answer
believe
we
gifts
that
Association
of securities
approved
bill
the
of
;
year.
York
New
is
in
alone
not
its
legislative study. Ten other states
hold
will
legislative sessions to
consider general matters in 1956
and we anticipate the introduction
of this bill in each of those legis¬
latures.
states
These
chusetts
and
are
Massa¬
where it
has already been introduced, and
Rhode Island,
Maryland, Michi¬
Virginia,
Kentucky, Louisiana, Ari¬
Mississippi and South Caro¬
gan,
zona,
of
It will prove an
wishes to make
We hope that this en¬
dorsement will be reaffirmed this
include
and
those whose lives
lation of the New York State Bar
last year.
f
.
I would like to second Mr. MacNeill's
lent
Committee of State Legis¬
all
proportion to the size of the con¬
to minors.
The
can
restrictive" out of
costly and
last
vote
but was held in the Senate
Judiciary < Committee
pending
further study. The bill has been
reintroduced in the current ses¬
sion of the Legislature by Assem¬
blyman John R. Brook and Sena¬
year,
how a living
be cumbersome,
and
expense;
trust likewise
Assembly
General
how the
.
well crush the small intended
Considering Bill
New
the
.
panoply of legal guardianship
can
and
New York
.
full
enjoyed by our neighbors in Con¬
Curtiss-Wright emerged as
some sort of a refuge for seek¬
ers
do
necticut and New Jersey.
Plane Issue
Attractive
children
simply as he opens
a
savings account or purchases
Government bonds for a child.
can
dividend boost. The com-' passed
positive Standard, Calso and Gulf Oil.
pany is a leading producer of
is Generally, the industry's last
canning and packing machin¬
cleared up, making it a some¬ price squeeze was in
1954
ery; with
all the facets of
with a good improvement in
what odd market situation.
4'automation" in the packag¬
earnings last year and with
ing line. Its chemical business,
Split Casualty
this year already off to a good
in which line it is a compara¬
The inevitable stock'split
start in heating oil demand
newcomer,
has
been
casualty of the week was du- because of the colder-than- tive
Pont which turned in some
building up impressively.
usual winter.
position
stand
Covering Stock Gifts to Minors
wants to give stock to his
to
giver
any
a
a
who
substantial gift
child may well
consider the advisability of creat¬
ing
which
trust
a
can
provide
greater flexibility, including con¬
tinuance of the property in trust
the child's majority, and
disposition of the property to
beyond
the
other
someone
the
child's
dies
before
than
child
the
if
estate
reaching 21.
Many of you, of course, are fa¬
miliar with this legislation. Many
others of you will be asked
opinion
it.
of
I
know
that
your
each
of
you will approach your con¬
sideration with sympathy and un¬
derstanding of the problem which
lina.
In
considering this bill these
legislatures will have the advan¬
tage of observing its operation in
other
states
the
for
past
it is designed to help solve.
bill
This
is
important
an
part
of the Exchange's program to en¬
broader share ownership
courage
year.
among
This
period has served to famil¬
iarize transfer agents and others
While
people.
our
the
Steel, which has the
Stock Exchange is first and fore¬
campaign contributions from
purchase on a good yield basis.
most a market place for securi¬
the oil industry failed to gen¬ advantage of having grown
Some of the paper issues with the measure so that it is no
ties it is also at the very heart
erate
much : evident
disap¬ faster than the industry as a were in favor and, conversely longer a novel form of gift. The
of our economic system—a system
whole, had its followers' since
intervening period has also served
pointment among the affected
under which the individual, not
the companies with large timto clarify certain tax questions
in only nine months of last
issues and their pattern was
berlands were eyed greedily concerning gifts made under the the Government, owns the* tools
of production and
under which
largely one of consolidation year its net was greater than
;:;4
by the paper makers, includ¬ statute.
incentive derives from the profit
after recent strength. There for any full year in history
Treasury's Ruling
motive, not from the dictates of
save
for
the Korea
War - ing the International Paper
was no dearth of champions
A Treasury Department ruling
talks with Long Bell Lumber
all-powerful government. If this
for specific oil issues since it spurred 1950. A large part of
dated Jan. 6 of this year states system is to grow and prosper, we
which has sizable timber
the company's operations are
that a gift made under one
is one industry
of believe it is essential that the
assured of
stands.
Robert Gair, which these statutes—in this case Colo¬
ownership of our productive fa¬
comfortable earnings for this run by members of company
has been adding to its product rado—is a completed gift for Fed¬ cilities be as widespread as pos¬
unions and even in past steel
Armco
N
year.
*
*
*
As with most
strikes Armco has been
,
able
lines
and
to continue a
busily both internally
such acquisitions as
by
significant por¬
that of Southern Advance Bag
making it
last year. Sales have nudged
the oil section has been rather an odd strike hedge in the
all-time records with contin¬
selective and has left a wide industry.
With the benefits
ued improvement anticipated
disparity between the tradi¬ of improved facilities starting
when the new lines and new
tional measurements from one to show
up
in the profits
issue to the other. Some have column,
Armco
has
been capacity come into play. The
company
is sufficiently at¬
been available at 20 or more growing
steadily in invest¬
tractive
to
Owens
Illinois
times earnings, such as Amer¬ ment stature.
Glass so that the latter holds
ada and Continental, while
#
*
*
half a million, or 17%, of the
others in the group are avail¬
Pan American World Air¬
major group,
the demand that centered
on
tion
of its output,
,
v
.
able
at
less
than
10-times
shares Gair has outstanding.
ways, the largest air transport
in Pure Oil and line in the- world, has been
Atlantic Refining. Similarly,
growing in popularity because
on
a
yield basis some have of a
background of favorable
been selling at less than 2%,
factors plus the fact that it is
earnings
as
including Texas Gulf Produc¬
ing, while yields of 5%
more
have been
Sinclair
and
Richfield.
latter,
or
available in
The
particularly,
is
re¬
garded somewhat widely as a
likely candidate for a divi¬
dend boost on top of its rela¬
tively high standing in the
yield column.
,
>
An
*
.
*
.
nual $3,000 gift
continue
in
the
liberal
yield column,
but since they are the cyclical
well deflated under its 1946 industry
of the American
peak when it sold around 10 scene currently, even the odds
points higher. The company of their getting their 7 %
came close in half of last year
freight rate increase haven't
able to
to equalling its net profit for been
inspire much
all of the year before, despite speculative enthusiasm. Some
the fact that earnings of many of the better class, like Il¬
of it? associated enterprises linois
Central,
occasionally
tax exclusion.
what it
ing
popularity.
that most
modest
lars
on
stock,
means
to adopt
repre¬
small is of
directed
Irving
commenting
on
article
recent
letin"
in
exnressed
believe
that
to
the continued
clients
of
our
to
Vice-President
Trust
the
the
Company,
statute
in
a
"Trust Bul¬
his belief that it
will
without
getting
this
is
essential
dynamic growth
facilitating stock
help to educate our children
about our business system is only
part
of
its value. In addition it
of us as parents
will enable each
a
spending "many costly
hours
explaining
to
customers
how they cannot casually register
securities in the names of their
been
gifts to children seems to me to
fit
perfectly into this program.
The
fact
that
these stock gifts
burden
of
have
economy.
This legislation
-
would relieve trust officers of the
children
efforts
America. More than anything else,
we
to put
minor
-
one
com¬
,
the
at
without
gifts of securities to chil¬
MacNeiil,
these
many
explaining
dren.
of
our listed companies
stock purchase plans for
.objective — the
broadening of shareownership in
par¬
problems involved in making
Earl
regular purchases
We have
spend
today
frequently
modest
make
Primary Objective
of
All
—
pensation,
Investment
out of income.
their employees.
ticular significance to those of you
bankers
and
lawyers alike —
the
and
devised
encouraged
few hundred dol¬
the average.
; ,;. .
must
and
members
have
a
of these gifts are
hours,
to
of stock
think that the fact that most
who
firms
Plan to enable the maji of modest
It bears out .the
gifts are of
of
for the country.
instituted the Monthly
of the
amounts
senting only
our
Exchange
member
survey
fact
means
Stock
of a number
of
our
large
listed
companies
shows that gifts under these stat¬
utes are enjoying a rapidly grow¬
recent
relations efforts to tell
the story of shareownership, what
it means for the individual and
impetus to the use of these stat¬
utes for modest gifts of stock. In
a
in
and public
This ruling should give further
fact,
all
advertising
deavoring
gift qualifies for the an¬
a
For that reason we are en¬
sible.
shares
such
I
aren't reflected in its
are
own
given market letter an¬
earning reports. International alysis. The road has been able
Oil Favorites
air travel is also picking up to whittle its funded debt ap¬
As far as the specific oil and the trend is expected to preciably in recent years and
favorites are concerned, one continue through this
year eliminate entirely a preferred
gift tax purposes on the date
are
registered on the
books of a corporation and that
the
Interesting Rail
Railroads
more
eral
in
aside for our own children
or two of stbck—to give
direct ownership interest
share
them
the
a
future
enterprise
live.
growth of the free
system
in
which
we
Volume 183
Number 5510... The Commercial and Financial Chronicle
(953)
Millions of Dollars
Union Carbide
AND
CARBON
CORPORATION
ucc
1955 Annual
Report Summary*
CONDENSED INCOME STATEMENT
1955
•
.
•
Total Income
Cost of Goods
1954
946,174,299
668,418,442
106,307,911
••
$923,693,379
804,255,363
•••••••••••••••«••••••
$1,187,153,197
1,207,883,693
••••••••••«•••••••••
93,712,849
Promissory Notes
14,737,500
172,129,258
141,827,061
'52
'53
*54 '55
'52
'53
'54
82,349,987
89,779,271
4.83
3.10
87,206,032
72,381,985
$677,219,203
$553,594,053
670,435,893
675,518,610
17,508,524
15,862,794
Renegotiation
Renegotiation
Net Income
Net Income per
'51
11,913,750
282,582,919
140,755,858
Net Income Before Federal Income Taxes and
Provision for Federal Income Taxes and
'50
Safes-
Expenses
Depreciation and Amortization
on
'49
'48
Sold, Selling, General, and
Administrative
Interest
1946 '47
Share.
Dividends Paid
Millions of Dollars
CONDENSED BALANCE SHEET
Assets
Total Current Assets
Fixed Assets After Accumulated
Investments in Affiliates and
Deferred
Depreciation and Amortization
Foreign Subsidiaries
Charges
6,660,502
6,824,192
Patents, Trade-Marks, and Goodwill
1
i
..
$ 1,371,987,813
$ 1,251,635,960
Liabilities
1946 '47
'48
'49
'50
'51
'55
Net Income and Income Taxes
Total Current Liabilities
$229,098,541
2.70% Promissory Notes
110,000,000
120,000,000
3.75% Promissory Notes
300,000,000
300,000,000
217,149,684
212,662,021
$156,946,120
Millions of Dollars
Capital Stock—
28,499,319 shares (28,388,894 shares in 1954)
627,300 shares (563,900 shares in 1954) held by the
Corporation as collateral under the Stock Pur¬
chase Plan for
36,409,539
23,775,439
253,559,223
236,437,460
Employees
29,126,619 shares (28,952,794 shares in 1954)
Less present amount
35,891,641
23,419,484
217,667,582
213,017,976
of Agreements
,
Surplus.
515,221,690
.
461,671,864
$1,371,987,813
Earned
$1,251,635,960
1918*20
'25
'30
'35
'<
'45
Dividends Paid
♦Copies of the complete 1955 Annual Report of Union Carbide and
Carbon
Corporation will be furnished
illustrated booklet that describes the
Carbide and tells how the
human needs. If you
on request.
products and
Also available is
processes
Thousands
an
of Union
Corporation's research helps satisfy basic
wish copies of these booklets, please write
to
the
Secretary, Union Carbide and Carbon Corporation, 30 East 42nd
Street, New York 17, N. Y.
UCC s Trade-marked Products include-
Eveready
Flashlights and Batteries
PrestOne Anti-Freeze
Union Carbide Silicones
•
Dynel Textile Fibers
Electromet Alloys and Metals
•
•
•
•
Synthetic Organic Chemicals
Haynes Stellite Alloys
Bakjslite,Vinylite, and Krene Plastics
•
National Carbons
•
•
•
Prest-O-Litf, Acetylene
Union Carbide
Linde Oxygen
•
Acheson Electrodes
•
PYROFAxGas
Number of Stockholders
'50
'55
11
!
18
The Commercial and Financial Chronicle
(954)
Study
...
Oil Where to Live and Invest and
Every
^
listed
Retention oi Company Reports
gests
plants or factories
some
all
to
company
do
I
on
the
the company is
of
our
or
ritories has its
They will get new industries and larger;populations,
and will enjoy lower living costs
They have all the advantages of
tne oig city, witn none of the dis-
me
If
located.
are
them
this
towns
makes
cities
states
city,
bullish
above
small
48
of
In addition to
and three ter-
o u r
most
in
are
By JOIIN T. CHIPPENDALE, JR.
waiting for direction signals. It is not expected, however, that too
will develop until some of the conditioning factors over¬
hanging the money market have been cleared away. Tne most
any
much
rather
is
important of these are whether Presicent Eisenhower will
not
reading the Pres-
reducing its-debt--
to
advantages
disad-
and
The
vantages.
is
South
very
attraclivedur-
as
issues held
d
summers
not
d
,
.
encourage
ambition and
The
progress.
Roger W. Babson
Pacific
has
ful climate; but
is becoming over-
markets.
The Central West
appears to be
the surest place to make a living;
but
it
holds
speculative
few
op-
portunities,—not so many as does
Two
the Southwest, such as Texas.
people with self-conprobably save money
easiest in Alaska; while Washing¬
hardy
young
could
trol
ton, D. C. would be the most dif¬
ficult place to lay up savings. Un¬
and not
speculative
|
excess
million
next
decade
is seen by Dr.
mild
13
"While all indications
George Cline
Smith,
VicePresident and
Economist o f
F
the
.
than offset this
About
What
Cities?
Big
i
Dodge Corpo-
* -
.
cities
.
.
Dr. 'George
C. Smith
New
more,
Francisco.
mobile
of
Because
the'trek
and
auto-
the
the
to
sub-
'boom,' at least not in the
that the word 'boom' com-
ing
sense
^oes
no^
represent
a
< vitable
evitable
might
to
a?ree
sometime
sometime.
be
it:is
therefore
theretore,
It
It,,
property m one
to. buy
of these big sea-
board
even
unwise
cities
or
mediate- suburbs.
belief becomes
the fear of
Kb
Leber
fact, as this
general, just
could depress the
But*
waee<=
hp
oe
1m-
In
Sfear m^Tako
ldfhe£ wafes'
chniim
Miouia
the
m
more
war
this
now
what
amount
to
fnmS?
force
wS
i7
vnu
oomDea.
growth of the
ratio
that
with
the
are
iotai out-
pei-iods of normal peacetime
gr0wth and considerably lower
than the 13% figure that charac-
peak~years of the last
in the '20s.
,
doubtful that the average
----can
family
content to
hit
the
industry
.
.
.
.
.
..
.
harder
.Because
a
u
a
a
the
not
half old.
hand, the
might be
,
remainder
of
which
radar
this
lias
should
respect.
been
tect
an
we
be
No
very
helpful
radar,
invented
enemy
spending
are
that'
on
in
however,
will
submarine
denly rising to the surface on a
dark night 200 miles from New
York
City and prevent it from
throwing an atomic missile into
the heart of New York City
Very
few
companies
are
now
building new factories in these
large seaport cities; instead, many
population
the
and
nation,
in
both
in pected growth of the
standards, .of..
living.
"In
we
is
the
economic
as
was
pic¬
the
new
a
attitude which has developed in the money market
of what will happen as far as future
forerunner
be
were
recentlv
by Government agencies in the mortgage field might also
foretelling what the powers that be will be doing in the-future.
Current Market Movements
-
-
-
?
Institutional demand for the 2%% Government
bonds, accord-*1
ing to advices, is being stepped up-^ with pome of this money com¬
ing from the sale of the 3s, the 3%s and short-term "obligations.
The out-of-town
able
commercial
savings deposits,
of the
more
are
banks, particularly those with size¬
reportedly among the important buyers
distant Treasuries.
The rise in the British bank rate to 5
%% is looked upon as
an English financial development and is not
expected to
have any effect upon interest rates in this
purely
country.
economy
many
growth. of
de¬
sud¬
in
concern
demand for funds
made
absolutl
the
of
same
monetary policy is concerned,. The changes which
should ton upwwd to following
wouldTxpect
elements
distant
past. Therefore, some of this money is
being put to work in selected issues of Governments, with the
trend still in the direction of
lengthening maturities. This is being
done in spite of the fact that the policies of the
monetary authorities up to this time have not shown
any changes.
On the other
cen¬
"Housio& starts will probably,
the
in
case
Ameri¬
house
are
ture, there has not been the
,v
tury and
Demand for Loans in Downtrend
there
others; and during the stays healthy. During this decade,
war which followed, nondefense at
least
$600
billion
will .be
la short, I would not invest in the building came to a virtual stand- -poured . into
construction,
both
Gocdbody Adds
electric or gas companies of any still.
\ (Special to The Financial Chronicle)
The underbuilding of that new building and maintenance
ft these big seacoast cities. It may Prolonged
period left .us with and repair. - This figure seems
ORLANDO, Fla. — Newton R.
be possible to protect certain of backl°gs from which we are still huge, but actually it assumes only
Black, George W. Newhart, Paul
cur interior big cities from bombs
trying to recover; and these back- a modest expansion of the indus- S. Liker and Louis A. Kornstein
dropped by airplanes.
The bil- logs are compounded by the rapid try directly in line with the ex- have jpined the staff of
Goodbody
lions
,
The inventory picture is likewise a point of a modest amount
because it is indicated that build-ups in -certain indus¬
.
.
of the future will be
live in
years. I
an
the constructlon industry went minimum of 12-* to 13-million
throu§h a Period of ?16 lean years starts in the next 10" years, and
from 1930 through 1945. The de- probably a lot more than that if
than
those
under
downward trend in consumers' loans that would be
steep and pro¬
tracted would not be too good for the
economy as a whole.
At the
Present take ?mofthe neighborhood
rate
replacement, it
would
,"We <>«en forget ithe fact that
pression
Invest your money, in other cities than those mentioned above,
™t
jn
reaI building boom
somewhat
prices which would be profitable does not usually have a favor¬
able effect upon the economy. Consumers' credit is still a bone of
contention among many economists.
for replacement of obso-
or destroyed housing.
-is entirely consistent
customary relationship
terized the
.
-
syal-ni th?n 11.% <rf 150 years to replace our exist-,'
in 1955 equal?d
of the total natl0nal output, a ing housing stock; and it is very
now
were
bave reached i;levelsl which are not considered to be too
.healthy.. .The.liquidation!?iof.inventories that are not movable at
demand, but- rather * atemporary shortage of financing:
Actually, it is possible to- argue*
that even in housing, we* have
been' underbuilding.
Most units
being built go to satisfy the needs
0f population growth; relatively
Authorities
seem
1956
of FHA and VA loans,-is evidence that conditions "in the building
business are not quite as inflationary as was the case not too
long
ago......
'
■ 1
'
1 '
0f .basic
SSf b'S
w
in
starts
tries
decline
tailing off
Og cities being bombed in case of
World War III. Although such a
VL iq not
in si*M
ih* hest
Pl™v
economy.
home
The fact that changes have been made in the terms
However, the opinions now
evidently are favoring a decline in the total volume of these
duction—higher capacities — are
loans.
Some lessening in the demand for, loans by individuals
necessary.* In a sense, this, is a.
tacit recognition of the fact that ; "would riot be ari adverse factor, because it seems as though these
even
industrially, we have-been* -borrowings- have- been- high in many instances. Nonetheless, a
monl.y implies a speculative excess followed by a bust.
There s
cult to forecast. Frankly, I believe no denying that construction, like
young people make a mistake in most other industries, is highly
-settling therein.
prosperous—but prosperity should
The
above
advir*
is
whollv not
be confused with a boom.
poart froin fhe nossibilitv M the Actually; the
expepsion of con- few
fbs,
these ; cities
are
going
through changes which are diffi-
i
of
of concern,
where higher basic levels of pro¬
such
pattern which is not considered to be as
it has been, and it would not be too surprising if
Inventory Picture Vulnerable
as?Bo3tor£V
•—
r
York
Philadelphia,'*Balti- Jan- 31> Dr- Smith j- pointed put. underbuilding.
Los Angeles, and even San
"There isn't any current build"This
year's
housing
seaboard
economic
number
..
•
to .expand
theirplant
equipment spending indicate*
a
recognition that the national
economy'has grown to a point
ciation,'. Kan-
our
more
Particular-
drop.
the
now as
of last year.
and
Bankers Asso¬
in
the
a
facturers
American
applies especially to large
settle
advice
will
in
vigorous
ing, and industrial building; Re-•
cently announced plans of rxiariUr.
of
Conference
the
people not to
biggest cities. This
young
force
.
ly strong elements will;be public
works and other„heavy engineer¬
ings and Loan
advise
point to
construction
of
Already there are signs of a let-down in the
industry, which could have an important effect upon
the economy of the country, especially if it were to be accelerated
and to be of long duration.
The building business is another
automobile
.
tivity in 1956, expansion in other
addressing the
Regional Sav¬
I
,
decline in homebuilding ac¬
sectors
W,
|
grade, of
,
being watched very closely by money
specialists because it is evident that the key which will
unlock future developments in the Government market will be
found in what takes place in the various forces that make
up the
-market
business situation.
r
.
school will have more
children each year through i960,
and the higher grades will go on
increasing lo.ng after that.
;;
go" applies to every part
great country.
.//
/
.
.
housing starts involving at least
$600 billion in construction costs
for new and old homes during the
fortunately, the saying "Easy come
.
The business pattern is
•
construction attempts to catch
with economy's growth. Y
up
^ minimum of 12 to
as
ration, New
York City. In
—easy
of our
market.
keeping the year's total building trend upward.
Discerns continued housing prosperity for the next 19 year?.
populated by job seekers.
New
England leads in educational fa¬
cilities; but it is handicapped by
high-cost power and by its distance from both raw materials and
Dodge Corp. Economist attributes expected 1956 mild
sees non-housing
construction
wonder¬
a
no alterations yet in the poli¬
that be, it will not take a great deal more of a
change in the forces that operate in the economic picture to have
a somewhat different official position
develop towards the money
housing decline to financial shortage and
Coast
the most
cies of the powers
Long Will the Building Boom Last?
F. W*.
of
one
and while there has been
sources ',
How
o
Monetary Policy
which has been
pressure
forces operating in a tightening way in the money
market, appears to have subsided and an early resumption of this
pressure is not expected.
According to reports, th.s is the kind
of thinking which is now being found in what is termed "official
ing the winter
season; but its
•
inflationary
important
scattered
me> as the owners are
all over the country. -
j
investors.
Business Trend Key to
,
,,
as in the immediate past and this is bemg-at&r*"
coming refunding off the Treasury. The longest ^
according to-reports, are sail being well- bought by*;'
the usual institutional
The
bother
t
d
not getting
the
..maturities,
by institutions. Long.
are
much attention
to bank loans and short-term note
country.
advantages.
JLn the interim, while the money market is waiting far things
happen, the buying continues to be sizeable in the near-term
bfibuied to
I especially refer
increasing it.
will
run
obligations. The middle maturities of Governments
,
and
or
again, whether the business pattern will* continue to show
less vigor, and to a more limited extent the impending refund¬
ing operation of the Treasury. It is evident that most of these
imponderables will be resolved in the near future.
ident's report, note the balance
sheet and compare it with that of
previous years. This means yo*
should keep old reports as-tag .;
as you hold the stock. - Only in
this way can you leant whether
of them are building new factories in interior cities. The most
desired locations are in centers
not know of any with a population of Less than
such locations. 75,000,
and even in cities and
Every one of towns of 10,000 or less.
All the
During these cold winter mcnths,
I get many letters asking where
to locate to get. an easy living,
Governments
on
The Government market still appears to be at the crossroads
risky,
from the standpoint of war risk
or
labor
costs,
or
from
other
points of view.
I don't like to
have "all my eggs in one basket."
increasing its debt.
Frankly,
or
large
reports for stock owned be retained in
determine whether the company is reducing or
old
order
is inevitable
war
Reporter
stockholder—even
the owner of only one share. This
report shows where the company's
time, Mr. Babson is bullish
about the merits of small cities and towns as a place to live
and to invest. The Massachusetts investment counselor sug¬
In assuming
Our
report
to every
year
By ROGER W. BABSON
i
-
exchange,
each
stock
any
attractive
an
Thursday, February 23, 1956
..
with securities
company
on
sends
Reporls
Annual
+
*■
"Where
is
the
economy.
"money
coming
&
Co., 205 North Main Street. Mr.
Black, Mr. Liker and Mr. Horn-
from for this volume of building?
many
are
still
types of construction
underbuilding.
particularly true
of
This
highways
stein
That should be
Kidder & Co.
estimate
no
assumes
tion won't
grow
problem.
that
any
The
faster
ample
ing, subject, of
ary
stresses
funds
for
build-
and
M.
—
Thomas
Murphy has become associated
with Pacific Northwest
Company,
Wilcox Euilding. Mr. Murphy was
formerly with Zilka,
Co.,
Inc.
Smither &
prior thereto for
with Conrad, Bruce &
and
many years
Co.
to temporstrains * which
RudiL Kristelle? Opens
*
*r
Branch in New York
Rudd,
Kristeller
a
&
Co.
have
branch office at 11 Wall
*
Joins Bache Staff
(Special to The Financial Chronicle)
CHICAGO, 111.—Philip C. Buhle,
Jr.
opened
course,
will probably always occur."
(Special to The Financial Chronicle)
PORTLAND, Oreg.
than
can be found in the rest Of the economy; and the
other categories as well. Our auto- expected increase in national inm°hile population has doubled in come and the normal growth of
19 years, but the traffic-carrying savings and investment should
provide
previously with A. M.
construc-
and schools, but
capacity of our highways certainly hasn't increased correspondingly. There are enough children
already born to insure that every
were
With Pacific Northwest1
has
Bache
Street, New York City under the
Street.
direction of
with
Adrian R.
Kristeller.
become
&
associated
with
Co., 135 South La Salle
Mr.
Buhle
previously
Goldman, Sachs & Co.
was
v.-
Volume 183
Number 5510
...
The Commercial and Financial Chronicle
(955)
\w.w.v.
...gives its planes
continuous
>
positional ^fix
maior
CENTERS
.,+
..keeps In
of the Mighty FORRESTAL
The U. S. S. Forrestal
..
.
60,000-ton
sea
giant.
..
the
much of its fighting
... including its
advanced-design communication and air navigation
"nerve centers" developed hy Federal Telecommunica¬
powerful carrier afloat...
most
efficiency to its modern
tion Laboratories, a
and
owes
sensory system
division of International Telephone
guide its planes safely home through darkness, fog,
weather, the Forrestal utilizes Taean... rev¬
and stormy
olutionary
of the
To
new system
that continually indicates position
on
same
the
new
high-speed code and facsimile.
electronic "nerve centers" will be installed
super
aircraft carrier U. S. S. Saratoga and
carriers to come.
vital developments... Tacan, UIIF and MHF
These
radio
...
are
outstanding examples of the continuing
tributions of IT&T to electronic progress
...
to
the
con¬
grow¬
America's defensive forces.
keep in constant two-way voice contact with its
frequency radio system
one-and-one-half times
new
The
ing might of
moving ship to its fast-flying planes.
pilots in the air, the Forrestal
tems
voice, teleprinter,
other great
Telegraph Corporation.
To
For ship-to-ship and ship-to-shore communication, a
medium-and-high frequency radio system provides the
Forrestal with clear and dependable transmission for
...
beaming its
uses a new
ultra high
with an effective range over
greater than many previous sys¬
...
power
through new-type antennas in
flight deck. V
locations-below the level of the
INTERNATIONAL TELEPHONE AND TELEGRAPH
■"lyiCORPORATION, 67 Brood Street, New York 4, N. Y.
ID
^
'
20
Financial Chronicle... Thursday, February 23, 1956
The Commercial and
;
(956)
Trust
&
Britain's Measures to
'
NEW BRANCHES
Governments bitter anti-infla¬
still of insufficient dosage. Steps taken include:
Eminent British Economist finds
believed
be: Bank Rate rise to
to
making savings
LONDON, Eng.—On Feb. 16 the
of England announced the
Bank
increase
of
The announcement
to 5y2%.
4%
from
Rate
Bank
its
did
not
come
altogether un¬
expected. For
weeks
some
increase of
an
the Bank Rate
vaguely
was
expected
Thurs¬
day, owing to
the
growing
feeling that
every
the measures
taken
by t h e
Government
fight infla¬
to
were
not
sufficient.
Paul
11
tion
Einzig
Chancellor of
took Mr. Macmillan,
weeks
the Exchequer, some seven
and
post,
new
his
with
himself
familiarize
to
the
obtain
to
of his proposed
disinflationary measures. Fore¬
most among
them was the in¬
Cabinet's approval
The
Bank Rate.
the
of
crease
bankers
and
more
becoming
were
critical
more
the
of
Treasury's attitude in the matter
of
the credit squeeze.
They did
not
like
to
incur unpopularity
their customers by taking
the
initiative
for
cutting their
credit facilities. The increase of
among
Rate
thern
of
has
this
Bank
the
task.
bound to be
There
are
number of borrow¬
a
who will
ers
relieved
now
prefer to repay
now
stain from asking for loans.
Will
vide
the'5.%;% Bank Rate pro¬
sufficient
deterrent
busi¬
to
in
Possibily
expenditures?
ness
the
building trade there will be
less
activity
both
by
private
builders and by local authorities
engaged in housing schemes.
A
number
of
marginal cases are
likely to be affected in many
branches of business. But so long
as
the rise in prices is expected
to
continue,
terest
the present in¬
even
fail
rates
borrowers.
In
deter
to
most
that
dear
order
money should produce its effect,
it would be necessary to convince
the
public that the rise in prices
has
now
to
come
halt.
a
In view
of the
large wages demands which
are
being pressed forward, most
people are inclined to doubt
whether
in
fact
rise
the
be
halted,
of much
cost
in
prices could
except
meas¬
ures.
measures
Macmillian
the
go
Bank
after
Rate
far enough
turn
current
of
do
not
to
bring about
to
appear
The
a
total
sum
capital expenditure
expenditure
Government
by Mr.
increase
the
of the trend.
of the cuts in
and
announced
is
about
by
£100
the
mil¬
of
Bank,
Baker, President,
Stewart
J.
The Chase
New York,
of
Vice-Presidents
Manhattan
an¬
nounced on Feb. 21. Both men be¬
stockholders
to
of
which
warrants
the
and
ers
10.
with
expired Feb.
charter
National
by the em¬
2,435 shares
effected
was
the
ployees and the Employee's Profit
Sharing and Benefit Plan of the
bank.
Reference to the plans to
date
increase
stock,
the
our
❖
The
capital of the
chester
N.
First West¬
Y.,
of
New
fV'-i-
of his
some
proposals. In the absence of
degree of improve¬
in the near future, he is
ment
r.:-V
likely to be able to persuade the
to allow him to proceed.
Cabinet
City,
the
capital
The Budget
statement on April 10
provide him with an oppor¬
tunity
for
introducing
another
will
batch
of
is
It
measures.
under¬
stood that he will then announce,
others, some new measures
aimed
at
making saving .more
attractive.
Such measures were
among
of
#
•
$1,412,500.
in
Eden
January, and
even if no
available
about
is
information
their
is
it
nature,
Macmillan
Mr.
original
that
something
assumed
has
unconventional
and
in
mind.
Meanwhile
the
Bank
further increase in
a
is
Rate
distinctly a
possibility. Before the announce¬
ment of the increase on Feb. 16,
it was widely believed that.the
Chancellor would resort to shocktactics
the
organizations.
Chairman
and
Inc.
former
member of the board of
a
directors of the Commercial State
to
rent
:i»
capital of the First National
Head, Long Island,
of Glen
Bank
Allowing for all this, the im¬
pression remains that he has not
enough.
There is no
comparison between the sum totaf
far
gone
of the
taken by him and
Butler, his predecessor,
the breath-taking Draconian
by
measures
Mr.
and
adopted
measures
sterling
danger.
in
1931
in danger,
was
41: when
In addition to the merger agree¬
Britain
or
itself
when
in 1940was
in
But then, those were oc¬
the directors
Hemp¬
stead, N. Y. and the Wheatley Hills
National Bank of Westbury, N. Y.,
of the Hempstead Bank of
noted
in
Feb.
our
16
issue,
page
854, the Board of Governors of the
in its Feb.
Federal Reserve System
4
weekly announcement noted the
merger
stead
on
Bank
under
Feb. 1 of the Hemp¬
of Hempstead, N. Y.,
charter
its
title
and
with
the Oyster Bay Trust Company of
Bay,
Oyster
both
Y.,
N.
State
casions of acute crises, and the
members. The announcement adds
public almost enjoyed submitting
that a branch was established in
to brutally harsh measures. Today
Britain
the
years
has
been struggling with
inflation, but in spite
losses of gold during 1955,
the
and
the
On the
ment
So
Section
administered
medicine
in
has to
relatively
be
small
latter
been
(Feb. l),"the
Banking Depart¬
the
had
ex¬
by
of the Banking Law
conferred
powers
100
was
absorbed
/
*
by The Ham¬
Citizens
.....
The
of
National
Southern
and
'';h
has been elect¬
Cashier
Assistant
ed
*
*
Merriell Autrey
has
served
bank
Cowles
the
been
Mr.
County
Presi¬
Bank
National
Co.
was
noted in
854.
our
of the State of New
the
York, thereby
bank to a trust
;;
capital of the Florida
Pensacola, Fla.,
Bank of
previously.
dend
was
A $400,000 stock divi¬
the
of
means
enlarging
the capital.
$
$
First
The
y.','''
$
National
Montgomery,
of
increased
Ala.
Bank
its
capital from $1,500,000 to $1,750,000, as of Jan. 17. The increase
Feb. 16 issue,
resulted
#
1951.
.
whereby the capital now (Jan. 17)
against $400,000
r
❖
*
stands at $800,000
and
with the County Bank & Trust
page
with the C&S since
made to the
and
son
Advisory
Mr. Autrey has
An addition of $400,000 has been
Passaic, was
Vice.-President
Bank
Feb. 17.
meeting
a
Atlanta
bank's
on
*
of
Executive
the
of
the
Board
the
formerly
Peoples
Company
elected
of
years.
12
past
Andrus,
of
dent
Trust
President
as
the
for
of
reelected. Mr.
were
from
a
V
$250,000
stock
dividend.
Reginald C. Short, of Pittsburgh,
'
Pa., has been elected Vice-Presi¬
dent
of
Bank
13
will
Short
duties
in
Thomas
by
the
C. elected Vice-Presidents
bank.
his
assume
1925 and
the
number
years.
trust
and
new
14 it
was
litzelle,
announced
Chairman
Feb.
on
by Karl Hobof
and Fred F. Florence,
the Board,
President of
Republic. Their election occurred
at the regular meeting of Repub¬
lic's Board of Directors, held on
associated
was
and Senior
Trust Officers of the bank
the 36th
of a
through the
Returning to banking, fol¬
;of
Mo-
tional Bank of Dallas, Texas, were
offices in
Richmond, Mr. Boushall said. A
native of New York City, the new
bank
officer .began his banking
with
J.
Trust Officers of the Republic Na¬
main Trust Department
career
T.
and
Vice-Presidents
announce¬
March 5 with the bank's
on
both
:?
Richmond,
Boushall, President of
Mr.
MacBean
J.
roney,
#
at
to
Feb.
on
R.
The
of
*
an
Virginia,
Va.,. according
ment
Officer
Trust
and
departments
anniversary of the found¬
the bank. Both Mr. MacMoroney are veter¬
members of Republic's official
ing of
banks
Bean and Mr.
an
lowing active duty with the Navy
from
1942-1946, Mr. Short later
joined the Fidelity Trust Company
staff, and have long held top posi¬
tions in its Trust Department. Mr.
MacBean joined the staff of the
He ad¬
Republic Trust and Savings Bank,
Associate Trust Officer.
as
vanced
to
Officer and then
Trust
an
Vice-President.
to
$ -
given to Certificate provid¬
ing that Hempstead Bank is to
converting
doses.
the
reported that approval
ercise
bitter
of
date
same
New York State
unexpectedly bad trade
balance figures in January 1956,
the
public" is
not
sufficiently
frightened to face a major shock.
the
location
former
bank.
chronic
of
com¬
ilton National Bank of Knoxville.
Citizens Trust Company of Pater¬
%
'
' S;S
■
ment entered into by
borrowers.
bank
Trust
York, it was announced on Feb. 16 Company in 1951 after more than
by D. Mallory Stephens, Board 20 years of general banking ex¬
Chairman, and Jacob Leichtman, perience in the Passaic County
area. The proposed merger of the
President.
of New
Bank and Trust Company
The
with
Tenn.,
capital stock of $500,000, ef¬
fective Jan. 5.
The liquidating
will continue as the
Executive
Officer,
chief
bank's
of^he New York City
Commission, has been
Planning
tive assistants
Fuller, who
t'fi
,❖
McCrary,
elected
Knoxville,
of his election followed
of several busi¬
Jerry Finkelstein, President of
powerful deter¬
a
of
Organization
Bank, Atlanta, Ga.' Announcement
raising it to at least
N. Y., has been increased as of
6%, and possibly even higher.
Jan. 18 from $234,600 to $238,000
There is a feeling that he is quite
by a stock dividend of $3,400.
prepared to go up to 7V2%, and
jjj
the anticipation of a further in¬
provides
Annual
the
members, officers and administra¬
joined
by
crease
of the Commercial National Bank,
President of the bank. Other board
and civic
Tex
Cur¬
then
he
*
by Sir Anthony
the
of
16
has
.
foreshadowed
Jan.
Manhattan Company.
director
a
Comptroller
at Washington reports on
the voluntary liquidation
rency
the
of
trustee
when
is
ness
a
*
*
#
Meeting of the Board of Directors
Vice-Pres¬ of the County Bank & Trust Com¬
Manhattan pany of Paterson, N. J., held in
York,
New
a
Bank of the
He
has
of
The
been January, C. Kenneth Fuller, Presi¬
Bronx dent, was elected Chairman of the
Savings Bank of New York. Mr. Board and Cowles Andrus, Execu¬
Freese has been in banking since tive Vice-President,
was elected
1916
16)
(as of Jan.
now
$10,000,000, raised to
that amount from $7,500,000 by a
stock dividend of $2,500,000.
',
.
,
Chase
The
of
elected
National
mon
*
Bank,
*J
and
Trust Company of Oklahoma
17)
At
Frederick J. Freese,
ident
than
less
not
Bank
First
Okla.,
economist.
desired
the
of
y
dividend of
A stock dividend of $200,000 has
Hess,
Assistant
Vice-President,
petroleum
department; Wheeler served to increase the capital of
In any event, Mr Macmillan has
T.
Dell, personal trust officer; the Citizens and Manufacturers
already proved that he is made
Robert L. Barker, Thomas B. Hal- National Bank of Waterbury,
of a tougher fibre than his prede¬
lock, Daniel S. Johnson and John - Conn., as of Jan. 18, from $600,000
cessor.
It is understood that he
R. Mclntyre, investment officers; to $800,000.
wished to go much further, but
:;
and John G. Winger, petroleum
that the Cabinet has vetoed
profits
undivided
and
reserves
The
augmented by a stock
$70,625, thus bringing
capital up to $1,483,125 from
(Jan.
60,000 shares of common
i $25 each, surplus of
$1,232,107.
recently
was
the enlarged
merger
par
$4,500,000
and
Bank
National
Rochelle,
000, in
*
❖
First
effective
the
At
bank had capital stock of $1,500,-
in
appeared
issue of Feb. 2, page 639.
capital
the
under
31
title of the
and
Bank.
of
of $1,500,000,
Jan.
of
as
Mobile,
of
Bank
stock
common
the
into
$260,000
National
First
for
of
stock
mon
117,165 shares were
by the stockhold¬
total,
subscribed
merger
Bank
the
*
v
of
the
Citizens
of Mobile, Ala., with com¬
The
all
have
under
for
subscribed
been
Of
Plan
Benefit
and
ing
*
*
employees of the bank
and to the Employee's Profit Shar¬
of $125,000.
dividend
stock
record
Jan. 24, to
Okla.,
Muskogee,
in
13, the amount having
increased from $500,000 by
sufficient.
be
a
The
appointed
have
Pempel
gan
the the position is different. For
at
drastic
more
been
J.
made
of
Bank
a
7Vg%, and
as
$625,000 was re¬
the Commercial Na¬
•
and Ralph
their banking careers over 30
years ago with the Equitable Trust
when, in order to encourage capi¬ Company which was merged with
tal
investment, an "Investment the Chase in 1930. Mr. Conovich is
Allowance" was granted for the in the public utilities department,
Mr. Pempel in the trust depart¬
purposes of taxation.
Moreover,
the Capital Issues Committee was ment. At the same time five of¬
instructed to scrutinize more ficers received promotions as As¬
sistant Vice-Presidents viz. Cor¬
closely applications for authoriza¬
tion of public issues and of credit nelius D. Howland in the bank's
mid-western district and Jack A.
exceeding £50,000. And the banks
were
called upon not to relent Peyman in the branch administra¬
tion department; Harold M. Lindtheir
credit
squeeze. A Possibly
these
steps,
together with the stedt, LeVan H. Loveland and
Herbert S. Pettit at branches in
Bank Rate, will cause some reduc¬
Seven new of¬
tion of business spending. But it New York City.
ficers
were
appointed: Carl M.
is far from certain whether it will
their loans rather than pay
higher
interest rates, and many wouldbe borrowers will prefer to ab¬
high
as
by
*
#
of Dec.
as
Alexander Conovich
attractive.
more
ported
been
4%% to 5Vsi%; (2) cur¬
tailing investments by local authorities and private sectors of
the economy; (3) reduction of Government expenditures by
£100 million; and (4) continuation of the cooperating bank
credit squeeze program. Chancellor Macmillan's future meas¬
ures
capital
tional
CAPITALIZATIONS
(1) increasing the Bank Rate from
.
*
Bankers
and
OFFICERS, ETC.
NEW
$500,000.•
A
REVISED
tion medicine
of
CONSOLIDATIONS
PAUL EINZIG
By
16, by reason of a stock dividend
News About Banks
Slow Down Inflation
lii
Columbus,
of
Company
Ohio, became $3,000,000 as of Jan.
The
.
$
-T"
.
Commerce
of
Bank
and
was
Trusts, of Richmond, Va. and the
State-Planters
Bank
and
affiliate later consolidated with
Republic, in January of 1924. He
began as Assistant Secretary, later
becoming Secretary. In 1928, he
elected
Assistant
an
President, becoming
Trust
a
Company, also of Richmond, Va.,
dent
both State members of the Federal
Vice-
Vice-Presi¬
and Trust Officer Jan.
in
Vice-President
1, 1946.
Mr. Moroney became affiliated
with Republic in 1929 as an As¬
1931, and
'
lion
this
equal
to
Budgetary
over
the
year,
which
the
increase
Estimates
Estimates
is
for
for
about
of
the
1955-57
1955-56.
On the other hand, the Chancellor
expects the local authorities to cut
their
capital
expenditure by a
considerable amount, and the pri¬
There
hand, he
lem.
that end,
a
Mr. Macmillan repealed
concession made by his
prede¬
cessor
less
than
two
years
ago
solve
the
prob¬
is
awaited
that
the
with
as
much
there
influence
are
of
opponents within the Cabinet
should
is
allowed free
were
especially
indications
his
fects
achieve
feeling that, if only
would
measures
interest,
capital
To
a
The second instalment of his
vate sector of the
economy, too, is
expected to curtail its planned
investment.
is
Mr. Macmillan
weakening.
of
be
his
in accordance with the Reserve System have merged as
of Section 94 of .the of Jan. 3 under the new title of
Banking Law; also providing for the State-Planters Bank of Com¬
an
increase of capital stock from merce and Trusts, according to an
$1,000,000
consisting of
100,000 announcement by the Board of
company
provisions
shares of the par value of $10 each
to
$1,200,000 consisting of 120,000
same par value.
shares of the
j}s
Meanwhile the ef¬
present
sufficient
to
measures
hold ster¬
Blair
ling and slow down inflation, even
if they could not bring it to a
stock
of
halt.
Bank
of
600
Co.
&
announce
>j!
Inc.
:■«
and
-r
associates
that the offering of 119,-
shares
of
The
additional
Franklin
Franklin
Governors of the Federal Reserve
System, which states that the for¬
mer
head
Square, N.
Y.,
and
branch
of
be
operated
branches
as
by
the
continuing bank.
:;s
capital
National
office
Bank of Commerce and Trusts will
Increased
#
from
sistant Cashier. He became
sistant
Vice-President
Vice-President
*
elected
in
1940,
Vice-President
an
in
and
and
As¬
1938,
was
Trust
Officer in 1946.
*
$
%
Twenty-four men and one
woman were elected to the board
of directors of Crocker-Anglo Na¬
tional Bank of San Francisco at a
*
$2,500,000,
the
capital of the City National Bank
special organization meeting held
on Feb.
13 the first day of busi-'
Volume 183
Number 5510
under the
ness
The Commercial and Financial Chronicle
...
bank name,
new
it
W. W. Crocker,
Chairman of the Board, and Paul
E.
Hoover,
President
Executive
Officer.
meeting, members of
committee of 16
same
were
bank's
clared. In
stock
new
these
M.
Philadelphia Se¬
Association,
announced
appointments to various commit¬
curities
on
de¬
was
Feb.
columns
President of The
ap¬
pointed and the first dividend
the
.PHILADELPHIA, Pa.—Francis
Brooke, Jr., of Brooke & Co.,
advisory
an
to the board
men
officers
named,
were
the
for the
page
business
for
opened
that
and
it
Feb.
on
represented the
13,
con¬
solidation of the Crocker First Na¬
tional
Bank
the
and
Anglo Cali¬
fornia National Bank, both of San
Francisco. As indicated in
13
issue
the
the
Feb.
our
.
Association
the
of
tees
16,
854, it was noted that the
Crocker-Anglo National Bank
Eugene Arnold,
Co.; George A.
Bailey, Jr., George A. Bailey &
Co.; Walter Buckley, Walston &
Co.; John P. McCoy, A. J. Sailer
& Co.; Warren V. Miusser, Phila¬
delphia Securities Corp.; William
T. Poole, Schmidt, Poole, Roberts
to
serve
The
membership committee is
headed
by F. Lester Smith of
Janney, Dulles & Co., as Chair¬
with
man,
Stokes
Edward
&
Chairman.
blower
the
&
members:
rVice-
J.
as
Other members of the
Weeks
program
Stokes,
B.;
r
Company,
&
& Parke; Daniel J. Taylor, Wood¬
cock, Hess & Co.* Inc.; and Wil¬
liam A. Webb, DeHaven & Townsend, Crouter & Bodine.
Albert A. R. Wenzel of Horn-
1956.
year
are:
Jr:; Robinson
Appoints Committees
Chief
and
At
committee
Phila. Sees. Assn,
announced by
was
(957)
is
Chairman
committee.
Thomas
of
Other
J.
Meaney, T.
Inc., and
Meaney,
Chairman
committee
Mcllvaine
of
Company.
Lacock,
of
the
member¬
Leighton
is
Goldman,
Harold
Hornblower &
E. W.
F.
Doremus
H.
The
Sachs &
Cdirter,
& Trust
Corporation,
/The directory committee Chair¬
is C. Budd Heisler, Central-
man
Penn National Bank.
Poole," Roberts
Reeves
Bunting
body & Co.
1
Other
Orrin V. Boop,
are
are
E.
Pennsylvania
Company. "
Banking
SUNBURY, Pa.— James H.
&
of
Schmidt,
Parke
Pea-
conduct
a
are
Fourth
securities
Street
business.
James H. Drass, Presi¬
dent; L. E. Drass, Vice-President
and
1
Howard
offices at 30 North
Officers
and
Kidder,
Drass, Inc. has been formed with
to
mem¬
.
Treasurer;
J. G.
and
Secretary. Mr. Drass
On the public relations commit¬
tee
Chair¬
Form James H. Drass Inc.
are
members.
bers
Co.,
Elwood Williams of
First
Weeks; William A.
Clark & Co.; and
Securities
ster
Eshleman
-
and G.
man,
Stuart M. Wyeth of Stone & Web¬
Richard M.
Newnham, Brooke & Co.
The
•.
ship
was
Drass,
formerly
President of J. H. Drass & Co. Inc.
York, 3rd, of
principal officers of
Crocker-Anglo
Bank
are
W, W.
Crocker, Chairman of the
Board; Paul E. Hoover, President
and Chief Executive
Sullivan,
Jr.;
How Pi
Officer; J. F.
Chairman
the
of
Executive
Committee;
Paul
B.
Vice-President, and
William Pflueger, Executive ViceKelly,
First
President. All other officers of the
former
Anglo and Crocker banks
•it is announced
the
of
cers
tional
Bank.
America in 1892...
elected offi¬
were
Crocker-Anglo
William
Na¬
A. Hender-
previously
.son,
Anglo
Cashier of the
has
been, .named
Bank,
Vice-President and Cashier of the
consolidated
institution
J.
and
J.
Pineapple flourished in tropical Hawaii's fertile soil.
But it needed steel for its voyage to mainland markets
Cambridge, Jr., who was Auditor
"of the former Anglo Bank, has
been made
General
first dividend
bank
Auditor.
The
of the consolidated
3,867,000 outstanding
shares of capital stock, amounting
to 30 cents per share, was de¬
Early in the.-1800's,r pineapple
grown
clared, in adjustment of dividends
declared by the predecessor banks
payable
April ,1
on '
the United States
One
holders of record March 10.
*
*
Senior
Vice-President
White
Feb.
Plains,
18
Lawrence
in
Bronxville.
He
it
In
on
was
the First National Bank and Trust
until
when
1954
consoli¬
was
Trust
of
Company
an
Put
New
answer
already* proved
suc¬
in
shipping perishable foods
distant places:
-rrr: ":' V -
from
the Westchester Bank
dated with
and
it
an
cessful
1931
Company of Tuckahoe from
v
,
1892, Capt. John Kidwell,
English horticulturalist on the Islands,
came up with the obvious answer. Tt
of
years
How-
,
ship pineapple to markets
fresh, without loss of its distinctive
flavor?
President of
was
had tasted it.
distance.
thousands of miles away and still keep
Hospital,
68
was
Mr. Boland
age*
died
Y.,
N.
ever
was
*
of
the National Bank of Westchester,
of
reason'
could you
*
John F. Boland, Sr., late Direc¬
and
was
.slopes of
green
faraway Hawaii. But few people inT
share¬
to
the. lush
on
'
before the consolidation. It will be
tor
...
its
on
pineapple in tin cans!
••••■••
liochelle, under the former bank's
+
National Charter
as
Look what
National Bank
happened
,
'
of Westchester. He had been with
bank
the
also
was
since
Mr. Boland
1914.
former Vice-President
a
of the Westchester
From this beginning, pineapple
,
!. .tremendously
Clearing House
mainland.
Association.
*
,«
most
*
*
a
branch office in
By using
ing until completion of permanent
at
Spadra
Road
and
Avenue. Max B. Horn,
1,893
Office, will be
assigned to the'new Fullerton Of¬
fice in a similar capacity. He will
-be succeeded
fice
at the Anaheim
was
Edgar
in
-board
of
of
Trust
the
San
Francisco,
14.
it
cancy on
fills
and
..
.
to
director.
a
pineapple sold
States
the
is
Islands
grown
in
the
near
fields, only 15 min¬
Advantages of tin
of
variety of fruits,
meat,
soups,
vege¬
fish, milk and
other foods.
make
that
research
closely with customers in
or
carry
per¬
to
shatter.
corrosion.
It
staff of
L. Jamieson
Russ
H.
Building.
He
sole proprietor of
Company
.'
an
officer
joined
was
the
It's easy to
and to store.
At National
steels of the
of
Putnam
Fund
tributors.
It's sanitary, too, used only once.
it's
our
constant
quality and in the
quan¬
cost to
our
customers.
adding only the
compact,
fraction of
an
inch to its contents.
are
diced,
crushed
juice form—is only
1"
now
ST EEL-MA KING
one
readily available in all
Our Weirton Steel
at
Company, located
Weirton, West Virginia, is
Great Lakes Steel
Steel
a
leading
Company
supplier of the electrolytic and hot-
Products
dipped tin plate required for the
Corporation
...
thanks to
made of steel coated with tin.
than 35 billion
cans
more
•
Ilanna Iron Ore
goodness and full flavor
we
GREAT
DIVISIONS
WELDED INTO ONE COMPLETE
National's role
Company
Company
•
STRUCTU R E
Corporation
•
•
•
'#•
Weirton
Stran-Stee! Corporation
•
*
*
National Steel
The Ilanna Furnace
National Mines Corporation
made each year.
*w
■
<s»
f
Jr
S
NATIONAL STEEL
CORPORATION
was
Dis¬
men
many
tity wanted, at the lowest possible
formerly
thereto
prior
Steel, it is
Co., Inc.,
Covington Janin
and
production
goal to produce still better and better
want them
cans
has
and
products of all American industry.
whenever
FRANCISCO, Calif
Janin
of the
cans
foods from faraway places
(Special to The Financial Chronicle)
Covington
one
Our
their natural
SAN
just
steels made by National Steel.
work
coating of tin to
a
resistant
won't break
ship, to
A
approximately 99
steel, with
it
many
fields to provide steels for the better
It is strong,
cent
Of course, tin plate is
course, many reasons
is the ideal container for
SEVEN
Pineapple—sliced,
and in zestful
H. L. Jamieson Co., Inc.
can
tremendous
tables,
produce
clean, cut and pack pineapple -
of many
Covington Janin Joins
a
And
.
as
of pineapple juice.
There are,
why the
cans.
the board caused by the
serving
of pineapple and
a va¬
inability of Philip 'T. Landis
continue
United
located
announced
was
Mr. Jessup
cases
cases
Company, of
in
Feb.
for
was
It takes workers in spotless canneries,
the
utes to
on
•
ply. The industry employs thousands.
of First West¬
directors
Bank and
ern
member
a
1903,
about .70 percent of the world's sup¬
Jessup, President of
Calculators, Inc., has
elected
been
In
The 1954-55 pack alone
cases.
Hawaii,
*
B.
-Marchant
cans
the industry has
About 80 percent of
Of¬
ager.
*
cans,
17,976,739
14,291,984
by Barney W. Jordan, Man¬
*
into
example, the total pineapple pack
Anaheim
the
goes
phenomenally.
grown
Assistant Vice-President in charge
-of
pineapple
made of steel coated with tin.
ters in the California Hotel build-
Whiting
the
of the five
popular fruits consumed in the
Hawaiian
'King, President, announced. The
bank will occupy temporary quar¬
quarters
one
In fact, more than 99 percent of all
Fullerton, Cal., in April, Frank L.
•
Today it is
grew
on
United States each year.
California Bank of Los Angles,
:Ca!., will open
in popularity
GRANT BUILDING
21
PITTSBURGH, PA.
22
they
Continued from first page
farmers than it would
who
tician
it not for the ubiquitous
were
generis and deserves abundant largesse from
sui
of
&
poli¬
the rest
us.
Facts Not Easily Had
I
Now
One trouble with this situation is the
general lack of
knowledge of the essential facts of this situation. Slow,
persistent trends are buried beneath the mouthings of time
servers. A good deal of work is required to unearth them,
and a certain statistical background is needed to interpret
them. Yet the facts are unmistakable. There is a long-
number of men devot¬
ing themselves to farming in this country, and that in¬
cludes both proprietors and hired help. It is also a demon¬
else; and being so extensively
every one
Jansen to Address
depreciation charges mounted.
Boston Investment Club
situation of this sort will be solved, it seems
a
solved by the simple (though quite pos¬
sibly painful) process of weeding out the less efficient
producer and permitting him to seek a living elsewhere;
a retirement of the less productive land; a better selec¬
tion of goods to be produced, and a generally improved
efficiency in production. This must proceed until such
time that the price of what is produced will in response
to natural forces meet the lowered cost of producing it and
to us,
constantly telling the farmer that he is
is
with
are
motorized their
We See It
:As
,
Financial Chronicle... Thursday, February 23, 1956
The Commercial and
(958)
if it is
ever
afford the operators
keep
sufficient profit to persuade them to
as we can see, none of the
producing. So far
on
under discussion could be
"solutions"
now
hasten that
day. And that is the disheartening thing about
depended
to
on
it all.
strable fact that the income of the farm operator
has de¬
woes.
As Governor Smith used
record. It
ers
were
was
let us look at the
and 1952 that the farm¬
to say,
in 1947, 1948, 1951
definitely "in clover," according to the
particular year chosen as the best de¬
most
usual criteria, the
pending largely whether gross income, net income or
realized net income is to be used as the yardstick. In
1948 and 1951 a very substantial part of gross income as
compiled by the Department of Agriculture consisted of
inventory profits, so-called, and in 1947 a smaller net and
realized net income emerged largely by reason of large
inventory losses—for the most part bookkeeping entries.
The results, whichever figure is used, of these years were
i
i
•
heavily influence^ by rising prices for all sorts of goods,
but, by and large, they may be taken as the boom postwar
years for agriculture.
But
how many farm operators were these
goodly sums distributed? In 1947, the number was roughly
4,650,000; in 1948, about 4,522,000; in 1951, some 3,956,000 and in 1952, the figure came to approximately 3,882,000. Gross farm income per operator wa^ $6,820 in 1947;
$7,880 in 1948; $9,650 in 1951 and $9,660 in 1952. Now
-
th^se
costs
among
years were
also exceptional
years
in the matter of
but, all things taken into consideration, the net com¬
ing through to the operators was relatively good, better
than in virtually any other post war year. Net per operator
in 1947 was $3,120; in 1948 it was $3,700; in 1951, the
•
•
figure was $3,990 and in 1952 it came to $3,680. If we
take actually realized income, the figures respectively are:
$3,610, $3,450, $3,680 and $3,460. (
Now turn to the situation in
1954, the latest year for
which such detail is available. A very substantial amount
of information is available for 1955 and it rather clearly
indicates
that
last year
in no fundamental respect
very substantially different from 1954 in these relation¬
ships. Well in 1954, gross income came only to $34,165,000,
000, an increase of $2,452,000,000 over 1947, but a drop of
$1,491,000,000 from 1948, a decline of $4,015,000,000 from
1951, and down $3,325,000,000 from 1952. These are the
was
figures—and others like them—that we hear so much
about. But unheralded and unsung the number of farm
operators declined 872,000 from 1947 to 1954, 744.000 from
■
1948 to 1954,
178,000 from 1951 to 1954, and 104,000 from
1952 to 1954. Thus
we
find that the average
farm operator
gross Income of about $9,000 in 1954 as compared
with $6,820 in 1947; $7,880 in 1948; $9,650 in 1951; and
$9,660 in 1952. His net income in 1954 was about $3,260
against $3,120 in 1947; $3,700 in 1948; $3,990 in 1951 and
$3,680 in 1952. If net realized income is taken as the meas¬
ure
of comparative well being, the figures are $3,170
against $3,610, $3,450, $3,680 and $3,460, respectively.
Evidently the farm operator is not nearly so bad off as the
gross figures so often quoted would suggest. '
had
a
us
also take note of the fact that the farm operator
has had to pay
has been
a
steadily rising
wages
to his help. There
decline in the total number of
men on
the pay¬
rolls of farm operators, but their numbers have not de¬
clined
sufficiently to offset rising
matter is that the wage
1954 than in any
the cost of
The fact of the
wages.
bill of agriculture
previous
year.
greater in
Farmers naturally found
operating the machinery substantially greater
(since they had much
more
of it); taxes
were
higher—as
the
at
Yacht
Boston
Club
on
Rowe's
at
Wharf
*
7
p.m.
Mr.
Jansen
has been pre¬
in
field
of
e c o-
,
the
ated
School
Mr.
The "In Between" Calls
from
sity
By JOHN BUTTON
Jansen
with
Many salesmen work like beav¬
ers to open an account, then after
they have made the first sale or
two, their interest is turned to
some other prospect and off they
go chasing what they think are
greener
pastures.
Someone re¬
cently mentioned his experience
as a first time customer of an in¬
vestment firm and critically re¬
marked, "Until they had my first
order you would have thought I
was
the most important person
they could know, but afterward I
was the forgotten man.
Before I
became
customer their mail was
a
regularly sent to me.
Offers of
service, of new issues, of attrac¬
tive investment opportunities were
mailed to me regularly.
Their
salesman telephoned me when he
had information he thought might
for
the
handle
to
business
my
its
and they put my
books something
their
on
name
happened. Al¬
though I still hear from the same
salesman occasionally and he's a
pleasant likable fellow, I have to
call him npw
thing in the
formation.
when I want some¬
way of
I guess
service
or
in¬
he's out look¬
ing for more profitable customers
that the invest¬
could it be
different
is
business
than
I
always thought that
your
customer was your best
prospect but it doesn't seem so
as far as my experience goes with
—
this broker."
You
When
first
"I
like
he
gives you his
saying to you,
is
and.I believe I will
benefit from this transaction, but
the rest is up to you — show me."
That is the sort of thinking that
Each man knows
many other people who could also
be your clients.
Don't overlook
the fact that it is what you do and
ple is the same.
affer
him
that
advisor,
will
you
or
that
obtain
you
that
order
his investment
are
will
first
convince
either
him to look
cause
somewhere else.
Several months ago a mild sort
of
came
man
told
into
he had
me
office and
my
small amount of
a
He said he
funds for investment.
wanted
mon
of
to
buy
it.
I
him
as
if
investor
he
had
been
of
an
a
possibility
only
possible client but
as a
and
it
to
see
tomer
the
as a
that your new cus¬
that
YOU
ARE
knows
THINKING OF HIM.
there
is
anything
Ask him if
else
you
can
Offer him quotations,
for
further
invest¬
Show your interest In others by
taking note of things in which
they are interested and use the
telephone to inquire as to their
welfare.
The
man
who
takes
an
interest in his customers will not
with
believed
that
about railroads and their securi¬
From 1948 to
1950, he was head
of the railroad section of the New
York Society of
Security Analysts
and has continued to
me
YOU
AFTER
SALE
NUMBER
Start
to
MADE
HAVE
would
treat
him
right.
first impression had been
Much to my surprise he
also told me that he was sending
ac¬
City.
Education Committee
Of N. Y. Inv. Assn.
The Investment Association
sons.
of New York is made up of young
of
field
the
in
men
ONE.
James Mueller Elected
Slayton & Go. V.-P.
ST.
James W.
Louis auto¬
mobile retailer, has been elected
a
Vice-President
of
Slayton &
LOUIS,
Mueller,
writers
Hilton
both
—
principal
Inc.,
of
Managed
H.
Slayton,
firms,
Mr.
Mo.
veteran St.
Company,
under¬
Funds, Inc.,
President of
announced.
Mueller's
new
investment
brokerage. Leon J.
Weil, Steiner, Rouse & Co., spoke
before the Omailia Business Club
at Fordham. Arthur Rock, Shields
& Co., lectured to the N. Y. Chap¬
ter of Delta Nu Alpha Fraternity
and William Ruane, Kidder, Pea-
principally administrative,
dealing with internal operations
and budgetary controls.
Mr.
Mueller had been
auto¬
an
mobile salesman and dealer since
1932.
Before
before the Women's
York Uni¬
spoke
body,
Faculty Club of New
Vance Van Dine, Morgan
Stanley & Co., spoke before the
Pan Hellenic Club and the Sav¬
versity.
ings
Association
Bank
necticut and
will
duties
be
coming to the Slay¬
ton
organization, he owned and
operated the Downtown Oldsmobile Agency in St. Louis.
ham
&
Co.,
talked
ORLANDO,
Fla.
become
Court
—
In the next few weeks
ties
Secretarial
Chandler
from
School,
the
Hotel
Barbizon
the
addition
Women.
for
Education
has
scheduled
at
Cooper
In
Commit¬
six
lecture
Union
during
a
with
Inc.,
21
Columbia Securities Corp.
Opens New York Branch
William M.
is engaging in a securi¬
business
are
Congressional Fellowship and the
Street.
Sterling Road.
talks
members of the In¬
vestment Association before the
April and May.
W. M. Ellsworth Opens
Ellsworth
the
William T.
affiliated
Investors,
ELMONT, N. Y.
before
scheduled by
course
(Special to The Financial Chronicle)
Con¬
of
Walter Stern, Burn-
Palestine Lodge.
tee
With First Fla. Inv.
odd-lot
he
an
banking and
large
because
take
part in the group.
Since
1947, he has been a trustee of the
Irving Savings Bank in New York
tive
He told me he had
I
I
ties.
The investment busi¬ organizations where there was a
total attendance of about 380 per¬
not be a
you.
is not, and should
"one sale" proposition.
ness
South
see
articles
hundred
several
written
Speakers Programs
checks in his hand which he laid
to
has been
Finance at
Corporate
Columbia University since 1948.
more
Florida
desk.
of
New
of
York University. He also
business with them
as time goes on, but he can count
^
on their loyalty as well. Not only
-During the past two months
will you build small accounts into
members of the Education Com¬
larger ones by following this pro¬
mittee, Speakers Group of the In¬
cedure, but you can also obtain
vestment
Association
of
New
new clients from friendly, loyal,
York have
appeared before six
customers who have done well
only do
has
My
good*
that
human being.
Call on the telephone after you
have made the sale. Follow up
First
back
School
Graduate
Administration
Since 1937, Mr. Jansen has been
closely identified with "Barron's"
and, in the intervening years, has
the
Lane
my
at the
overlook
other fellow is IMPORTANT, not
He left and I forgot the
Just the other day he
buyer.
rities
teaching
reappeared and he had two small
incident.
From 1946 to 1953, Mr. Jansen
taught Analysis of Railroad Secu¬
be certain that you expose your¬
self to opportunities is to never
pleasant to
as
ever
railroad
in
considerable
him
just
instead
com¬
what I thought
me
gave
was
X Y Z
some
and asked
and
on
and
you
is going on in his mind. Even if
he is a small account, the princi¬
say
when
know
never
customer
a
order
almost
Business
sell
Don't Stop After the First Sale
firms
interest
where you are going to find busi¬
ness—but the only way you can
would ment, statistical reports, or just
find out the. state of* his health.
and
top service. After I made my
first
investment
through
them
ment
for
appreciation by giving
me
—or
reinvestment
him.
suggestions
show
His
ceived these funds he wanted me
pressed that here was a firm that
wanted
Univer¬
of Business in 1927,
has been connected
fairly substantial sum that securities
began in 1930 when he
was
invested
in
low
yielding, was head of the statistical
depart¬
fixed-income securities, and gov¬
ment of Schmeltzer, Clifford &
ernment bonds, and when he re¬
Company.
do for him.
was
Arthur Jans«
a
im¬
I
be of interest to me.
_
_
Columbia
financial
since.
come
was
held
and,
security analysis for many
years. Gradu-
Securities Salesman's Corner
time
Let
ing will be
nomics
others
And Now?
meet¬
railroad
a
sible for the farmer's
The
dinner
eminent
good deal less than the calamity howlers citing
price relationships would have us believe, and a little
analysis reveals the further truth that it is the cost of pro¬
duction rather than gross receipts which is mostly respon¬
clined
Inv estment
Club.
the
term, rather steady, decline in the
Mass. —On Wednes¬
BOSTON,
day, Feb. 29, Arthur Jansen, gen¬
eral partner of W. E. Burnet and
Company, will address the Boston
—
offices
at
159
Columbia Securities Corporation
of
Denver
has
opened
a
branch
office at 80 Wall Street, New York
City
under
A. Henry
the
Fricke.
management
of
Volume 183
Number 5510
...
The Commercial and Financial Chronicle
(959)
THE BOSTON SECURITIES TRADERS
ASSOCIATION
32nd ANNUAL
At The Parker House
DINNER
February 10, 1956
Recording
Treasurer
V ice-President
Secretary
Corresponding
Secretary
h
'f
r
Gilbert
W.
York
M.
Lothrop
Hutton
&
Co.
Frederick Y. McVey
Alexander W. Moore
New
E.
Cart V. Wells
J
Jeffries &
Thorndike, Inc.
Childs,
Hanseatic
Corporation
Paine,
Jackson
Webber,
&
John
May &
A.
McCue
Gannon, Inc.
Curtis
GOVERNORS
-
Francis R. Cogghill
White,
Weld
&
Co.
Wilfred G. Conary
G.
H.
Walker
&
Co
Raymond V. Coppens
Blair
&
Co.
Inc.
Walter
F. Eagan
Harris, Upham & Co.
E.
James
J.
B.
Moynihan
Maguire &
Co., Inc.
Leo F. Newman
American Securities
Corporation
23
24
The Commercial and Financial Chronicle... Thursday, February 23, 1956
(960)
Distribution
in NEW ENGLAND
for
more
than 100 YEARS
Estabrook & Co.
Gecrge Cunningham, George W. Cunningham & Co., Westfield, N. J.; Joseph Rinaldi, Lo.rner & Co.;
Lloyd Clearihue, A. E. Ames & Co., Incorporated; Tony Cala'ana, R. W. Presspri.h & Co.
15 STATE STREET, BOSTON
Boston
Telephone LAfayette 3-2400
Boston
kartford
New York
Teletype BS-288
Poughkeepsie
Springfield
Providence
Members New York and Boston Stock
Exchanges
Kidder, Peabody & Co.
Founded
in
1865
Members New York, Boston, Midwest and
American Stock
Exchanges
Jim
McFarland, Hecker & Co., Philadelphia; Frank Breen, Schirmer, Ath'ertcn & Co., Bpstcn; Carroil
Williams, Laird, Bissell & Meeds, New York; Alan R. Hart, Schirmer, Atherton & Co., Boston
Trading markets in
New
England Bank, Utility and Industrial Stocks
75
Telephone:
Federal
Street, Boston
Liberty 2-6200
Teletype: BS 338
NEW YORK
CHICAGO
PHILADELPHIA
New
Lowell
*
New Bedford
*
SAN
England
Newport
•
FRANCISCO
Branches:
Providence
•
Spring field*
Taunton
Investment Bonds and Stocks
John
Hudson,
William
Thayer, Baker & Co., Philadelphia; Gilbert Lothrop, W. E.
H. Rybeck, William H. Rybeck & Company, Meriden, Conn.;
Edward M. Bradley & Co., Inc., New Haven
Hutton & Co., Boston;
Guy R. Hogarth,
Securities of the United States Government
and its Instrumentalities
Jim
McAtee, Butcher & Sherrerd, Philadelphia; Fred Carter, DeHaven & Townsend, Crouter &
Bodine, Philadelphia; Bud Lewis, Weeden & Co., Boston; Ed Knob, Drexel & Co., Philadelphia
State, Municipal and Revenue Securities
Bonds, Preferred and Common Stocks of Industrial,
Public
Utility and Railroad Corporations
Bank and Insurance
Bankers'
v
Company Stocks
Acceptances
Securities of the International Bank for
Reconstruction and
Canadian Bonds
Underwriter
New York
Philadelphia
•
Development
Foreign Dollar Bonds
Distributor
•
Boston
-
Pittsburgh
Cleveland
|
,
•
Dealer
Chicago
San Francisco
Joe
Titolo, Harris, Upham & Co., New York City; Lowell Warren, Dominion Securities Corporation,
Boston; Walter Eagan, Harris, Upham & Co., Boston; Barney Nieman, Carl Marks & Co., Inc., N. Y.
Volume 183
Number 5510
,
...
The Commercial and Financial Chronicle
(961)
25
»
TEXTILES
DEALERS.
INDUSTRIALS
PUBLIC UTILITIES
BANKS
INSURANCE
Joe
Buonomo,
F.
L.
F.
L.
Putnam
&
Putnam & Co., Inc.; Mark Means, F. L. Putnam & Co., Inc.; John D'Arcy,
Co., Inc.; James Concagh, Nesbitt, Thomson and Company, Inc., New York
HOTCHKIN CO.
Telephone
Dealers in
LAfayette 3-0460
Cable
Unlisted Securities
Established 1908
Address
STATE
53
"Tockin"
STREET
BOSTON 9, MASS.
*
PRIMARY
,
MARKETS
UTILITY and INDUSTRIAL STOCKS
NEW ENGLAND SECURITIES
BOSTON
M.
A.
James
CORRESPONDENT
KIDDER
&
CO., NEW
YORK
E.
Sullivan, Baldwin, White & Co., Boston; F. E. Maguire, Stroud & Company, Incorporated,
Philadelphia; Jack Jossem, Mitchell & Company, New York City; Bill Thompson, Carr & Thompson,
Inc., Boston; Frank Walters, Cosgrove, Miller & Whitehead, New York
for
BANK and INSURANCE STOCKS
J. B. MAGUIRE &
31
Open-end Telephone Wire
New
CO., INC.
Milk Street, Boston 9, Massachusetts
York—CAnal 6-1613
New York
to
Bell System
Teletype—BS 142
Boston—HUbbard 2-5500
Providence, R. I.—Enterprise 2904
Portland, Maine—Enterprise 2904
Hartford, Conn.—Enterprise 6800
I
David
May,
May
&
Gannon, Inc.; Lewis D. McDowell, Chas. A. Day &
May & Gannon, Inc.; Irving Le Beau, May & Gannon,
Co.,
Inc.
Inc.;
John
;
\
••
■/.'
•
■
/
V-.-"
McCue,
'%
Since 1929
1904
*
Specializing in New England Securities
52 VMS OF SERVICE *
General Market Stocks and
Bonds
Chas. A. Day & Co.
Incorporated
TZIZ
Listed and Unlisted Bonds and Stocks
"E
MAV« GANNOIW.
140 FEDERAL
particularly of\
New
STREET, BOSTON 10, MASS.
r
William F.May
England Corporations
f
Joseph Gannon
William J. Burke, Jr.
Vice-President
Treasurer
President
ZZ
Inquiries invited from Dealers
and Financial Institutions
—
BOSTON
Maintaining
with
a
Retail Department
Distribution in New England
—
HU
NEW
2-8360
CA
--
HARTFORD
Enterprise
9830
YORK
6-2610
,
PORTLAND
PROVIDENCE
Enterprise 9830
Enterprise 9830
WASHINGTON AT COURT STREET
Member Boston Stock
Exchange
i
26
The Commercial and
(962)
Financial Chronicle
...
Thursday, February 23, 1956
Underwriters and Distributors
Industrial, Public Utility and
Railroad Securities
Municipal Bonds
Bank and Insurance Stocks
Unlisted Securities
Laird, Bissell & Meeds
NEW
MEMBERS
120
YORK
AND AMERICAN
PHILADELPHIA,
WILMINGTON, DEL.
44
WHITNEY
NEW
160
BASEL
AVE.
SWITZERLAND
CONN
HAVEN,
Murphy, Commercial & Financial Chronicle, New York; Wilfred N. Day, Chas. A. Day & Co., Inc.;
Don
Homsey, du Pont, Homsey & Company; Arthur Engdahl, Goldman, Sachs & Co.
Bell Teletype NY 1-1248-49
PHILADELPHIA NATIONAL BANK
BUILDING
PONT
Hal
BROADWAY, NEW YORK 5, N. Y.
Telephone BArclay 7-3500
DU
STOCK EXCHANGES
BLDG.
PA.
BROADWAY
W.
SALEM,
N. J.
William Kumm, Coggeshall & Hicks, New
Inc.; James
York; Timothy Murphy, Chace, Whiteside, West & Winslow,
B. Maguire, J. B. Maguire & Co., Inc.; Bab Greene, Stroud & Company,
Incorporated, Philadelphia
Your Doorway to trading markets in
New England Securities
31
MILK STREET,
BOSTON 9, MASS.
Telephone HAncock 6-8200
Members New York and Boston Stock
Springfield
Fitchburg
*
PUBLIC
PRIMARY
Exchanges
Worcester
*
UTILITIES
"Duke"
MARKETS
WITH
Hunter, Wellington Hunter Associates, Jersey City, N. J.; Joe Monahan, J. A. Hogle &
Yorki; Maurice Hart, New York Hanseatic Corporation, New York; Jim Traviss,
Goldman, Sachs & Co., New York
New
INDUSTRIALS
COMPLETE
RAILROADS
TRADING FACILITIES
BANK
AND
NESBITT, THOMSON AND COMPANY, INC.
INSURANCE
25 Broad
140 Federal
Street, New York City 4
Telephone HAnover 2-8875
Street, Boston 10
Telephone HAncock 6-3355
Teletype NY 1-4358
BONDS
•
PREFERRED
STOCKS
COMMON
•
STOCKS
Dealers in
i
Canadian
Public
Utility & Industrial Issues
Orders executed
Stock
Government, Municipal
for Financial
Exchanges
or
at
Institutions
Affiliated
on
New York
net
all
Canadian
prices
with
NESBITT, THOMSON AND COMPANY
Blyth & Co., Inc.
Limited
AND
NEW YORK
BOSTON
•
SAN FRANCISCO
SPRINGFIELD
•
•
•
CHICAGO
PHILADELPHIA
•
LOS ANGELES
PITTSBURGH
•
•
SEATTLE
CLEVELAND
•
•
NESBITT, THOMSON & CO.
PORTLAND
MEMBERS
INDIANAPOLIS
•
MONTREAL
EUREKA
•
•
DETROIT
SACRAMENTO
•
•
MINNEAPOLIS
FRESNO
•
SAN JOSE
•
SPOKANE
STOCK
EXCHANGE
•
PASADENA
TORONTO
OAKLAND
•
•
STOCK
EXCHANGE
CANADIAN
LOUISVILLE
STOCK
EXCHANGE
SAN DIEGO
MONTREAL QUEBEC TORONTO OTTAWA HAMILTON LONDON, ONT. KITCHENEK
Wilfred
Conary, G. H. Walker & Co..
Providence, R. I.; Joe Carew, Hanrahan
& Co., Worcester, Mass.
WINNIPEG
REGINA
VANCOUVER
SASKATOON
VICTORIA
CALGARY
SAINT JOHN, N. B.
EDMONTON
LETHBRIDGE
FREDERICTON
MONCTON
Co.,
Volume 183
Number 5510
...
(863)
The Commercial and Financial Chronicte
Carl
Wells, Paine, Webber, Jackson & Curtis; Ray Coppens, Blair & Co.,
corporated; Alex Moore, New York Hanseatic Corporation; John Mathis,
Estabrook
Leo
Newman,
American
New
York;
Securities Corporation, Boston; Lou Walker, National Quotation
Leon Dorfman, Goldman, Sachs & Co., New York; John Meyers,
Gordon Graves & Co., Inc., New York
2T
In¬
Co.
&
Bureau,
UNDERWRITERS, BROKERS and DEALERS
distributing
CORPORATE and MUNICIPAL SECURITIES
since
1886
W. E. HUTTON & CO.
Members New York Stock
and other leading
James
J.
Lynch, Paul D. Sheeline &
Seligman, Lubetkin & Co.,
Co.; JPaul D. Sheeline, Paul D. Sheeline & Co.; Ralph
New York; Dick Corbin, Blyth & Co., Inc., Boston
Dimpel,
Exchange
exchanges
CINCINNATI
NEW YORK
Philadelphia
Baltimore
Boston
Burlington, Vt. Columbus, 0. Dayton, O. Easton,Pa. Hartford, Conn.
Lewiston, Me.
Portland, Me.
Lexington, Ky. Biddeford, Me.
Primary Markets
Institutional Securities
U. S. Governments
Railroads
Industrials
Arthur Murphy, A. C.
tion,
New
Allyn & Company, Incorporated; Frank Ronan, New York Hanseatic Corpora¬
York; Walter Saunders, Dominion Securities Corporation, New York;
Fred McVey, Childs, Jeffries & Thorr.dike, Inc.
Municipals
Equipment Trusts
Preferred Stocks
Canadians
Bank
Public Utilities
Acceptances
Finance Paper
Salomon Bros.
&
Members New York Stock
Hutzler
Exchange
Sixty Wall Street, New York 5, N.Y,
Boston
Cleveland
Philadelphia
Chicago
;
West Palm Beach
Dallas
San Francisco
I. S. MOSELEY & CO.
ESTABLISHED
Vaughan, Doremus & Co.; Wilfred N. Perham,
Harold
Jr.,
A.
C.
Allyn
&
Company,
Incorporated;
Townsend, Dabney & Tyson; Jim McCormick,
Charles Callow, Frederick C. Adams & Co.
1879
MEMBERS
New York Stock Exchange
American Stock Exchange
Boston Stock
Midwest Stock Exchange
Exchange
Underwriters and Distributors
CORPORATE
of
MUNICIPAL
AND
SECURITIES
COMMERCIAL
BOSTON
•
NEW YORK
•
CHICAGO
SPRINGFIELD
Calvin
Clayton, Clayton Securities Corporation;
W. E. Mutton & Co., New York;
Brown,
Sumner Wolley, Coffin & Burr, Incorporated; Tom
Jack Putnam, W. E. Hutton & Co., Boston
•
•
PAPER
INDIANAPOLIS
PHILADELPHIA
•
WORCESTER
28
(964)
The Commercial and Financial Chronicle...Thursday, February 23, 1956
Television & Radio
Broadcasting Corp.
wjda
wesx
Quincy
Salem
Bought
—
Sold
—
Quoted
(Current Market %-l Vs )
JACKSON & COMPANY, INC.
31
MILK
ST.
BOSTON
White, Weld
9, MASS.
& Co.
William E. Creamer,
Schirmer, Atherton & Co.; Ed Beakey,
Brothers & Co., Hartford
Eddy
Herman
Keller,
Norton
Keller
Keller,
Brothers
and
Harvey
Securities
Keller,
Co.
Members of the New York Stock
Exchange
111
Devonshire Street, Boston 9
We maintain active markets
\mm
in securities
Natural
New
of
"t.
Qas Companies
York
Chicago
Philadelphia
Los Angeles
San Francisco
Hagerstown
Minneapolis
New Haven
Winchester
London
Amsterdam
Stevenson,
Nesbitt, Thomson and Company, Inc.,
York;
Carl K. Ross, Carl K. Ross & Co., Inc.;
Portland, Maine; Eugene Hussey, First Boston Corporation
Russell
Robert
Walter
Rex
Townsend, Dabney
ESTABLISHED
Members
New
Associate
30
York
and
Members
and Tyson
Potter, Arthur W. Wood Company; Joe Lombard,
Bros. & Hutzler; Kenneth French,
Salomon
New
Salomon
Bros.
&
Hutzler
1887
Boston
American
Stock
Stock
Exchanges
Exchange
STATE STREET, BOSTON 5
Dealers in
I
New
England
Corporate and Municipal
Securities
New York
Telephone CAnal 6-1540
Teletype BS-346 for Trading Dept.
BS-430 for Municipal Dept.
Branches:
Portland, Me,
Lewlston, Me.
Greenfield, Mass.
Augusta, Me.
Lawrence, Mass.
Bangor, Me.
Keene, N. H.
Fitchburg, Mass.
Manchester, N. H.
B. Flemming, Weston W. Adams & Co.; Robert
Polleys, Josephthal & Co.; Speed Hughes, Clayton
Securities Corporation
(
New
'
Swift, Kidder, Peabody & Co.; Walter Austin,
Kidder, Peabody & Co.; C. A. B. Boss, Broad Street
Sales
Corporation
England Markets
Underwriters and Distributors
Secondary Distributions
Banks
and
Insurance
Industrials
Inactive
—
Stocks
Utilities
Securities
F. L. PUTNAM & COMPANY.
Member
77 Franklin
Boston
Stock
Street, Boston 10, Mass.
Tel. Liberty 2-2340
525 Hospital
.NC.
Exchange
Trust BIdg.,
Teletype BS 497
Providence, R. I.
Lester
Doucet,
Salomon
Salomon
Bros.
J.
&
H.
Bros.
&
Hutzler;
Goddard
&
Hutzler; Ollie Sughrue,
James H. Goddard,
Co, Inc.
W. J.
Warkentin, Harris, Upham & Co., New York City;.
Dayton Haigney, Dayton Haigney & Co., Inc., Boston
Volume 183
Number 5510
...
The Commercial and Financial Chronicle
(965)
t
Pubco Development
Report
on
Co. Inc.
request
Hodgdon & Co.
State Street, Boston 9,
10
Carroll
Williams, Laird, Bissell & Meeds, New York;
Whitcomb, Harriman Ripley & Co., Incorporated;
Barney Bernard, Schirmer, Atherton & Co.; Wallace Mossop, Barrett &
Company, Providence, R. I.
Burt
Mass.
Bell System Teletype BS 843
Telephone CApitol 7-4235
Frank
Mullin, While, Weld & Co., Boston; Wally Runyan,
Hemphill, Noyes
& Co., Philadelphia;
Bob Albertson,
Hemphill, Noyes & Co., New York; Clive Fazio,i,
White, We d & Cc„ Boston
Underwriters, Dealers and Brokers
State and
Corporate Bonds
Municipal
and Stocks
Bonds
Retail Distribution in New
England
Chace, Whiteside, West & Winslow
INCORPORATED
24 Federal
Street, Boston 10
Phoenix Bank
N.
Jim Jones, Joseph McManus & Co., New York; Bob Payne,
Bache & Co., New York; Jim Mundy, Stroud & Company,
Incorporated, Philadelphia
Frank
rick,
Harrington, H. D. Knox & Co., Inc.; Phillip KendSecurities & Exchange Commission; Ed Kelly,
Carl M. Loeb, Rhoades & Co., New York
Y. C. Phone:
j
Bldg., Providence 3
Bell System
WOrth 4-1363
Teletype: BS 282
RHODE ISLAND SECURITIES
Our
Trading Department Invites Your Inquiries
On All Rhode Island Securities
Open-end Phone to Boston
—
LAfayetfe 3-0610
G. H. Walker & Co.
1900
Established
members
new
york
american
15
UNion
YORK,
ST.
stock
exchange
LOUIS,
WATERBURY,
exchanges
(assoc.)
PROVIDENCE
Teletype
bell
1-4000
DIRECT
NEW
midwest
stock
ST.
WESTMINSTER
Telephone
&
PRIVATE
WIRES
PAWTUCKET,
AND
WHITE
3.
R.
pr
43
TO
BRIDGEPORT,
PLAINS
HARTFORD,
OFFICES
Crandon Leahy, National Quotation Bureau, Boston; Chas. O'Brien Murphy III, Pearson, Murphy &
Co., Inc., New York; Sam Kennedy, Yarnall, Biddle & Co., Philadelphia; Jim Moynihan, J. B. Maguire
& Co., Inc., Boston; Jack Carothers, H. M. Byllesby and Company, Incorporated, Philadelphia
Dealers and Brokers in
General Market Issues
Specializing in
New
England Securities
Carr & Thompson, Inc.
31
MILK
STREET
BOSTON 9, MASS.
NEW YORK
BOSTON
HUbbard
2-6442
Bell System
am
Colwell, W. E. Hutton & Co., New York; Joe
Strauss, Strauss, Ginberg & Co., Inc., New York;
Smith, Newburger & Co., Philadelphia; Abe
Sol Bass, Bear, Stearns & Co., New York
WHiteball 3-7600
Teletype BS 328
I.
29
30
(966)
The Commercial and Financial Chronicle... Thursday, February
23, 1956
Specializing in
NEW ENGLAND
BANK
Maine
STOCKS
New
Vermont
Hampshire
Massachusetts
Firm Markets
Power Condenser & Electronics Corp.
Dynaseal Lighting Corp.
Cinerama, Inc.
Reeves Soundcraft
Eastern Gas &
Fuel
Paul D. Sheeline & Co.
31 MILK
Bob
STREET, BOSTON 9, MASS.
Telephone HAncock 6-0170:
NEW
Ingalls,
Tripp &
Jim
Kelly, Shearson, Hammill & Co., Springfield; Bob
Calvert, Schirmer, Atherton & Co., Hartford; Aaron
Cook, Putnam & Co., Hartford
Tucker, Anthony & Co.; Elliot Tabor,
Tabor, New Bedford;
Pete Munn,
Jackson & Company, Inc.
Teletype BS 51
VIEWS
ON
RIVERSIDE CEMENT
CLASS B
On
request
this stock
will send
we
offers
COMMON STOCK
an
you
an
analysis showing why
excellent opportunity for capital gains.
LERNER & CO.
10
Post Office
Square, Boston 9, Mass.
Telephone
Teletype
HUbbard 2-1990
BS 69
Harry Crockett, Coffin & Burr, Incorporated; Jerry In¬
galls, Coffin & Burr, Incorporated; Arthur Engdahl,
Goldman, Sachs & Co.
*
Emil
Kumin, Estabrook & Co., Boston;
Kugel, Stone & Co., Inc., New York;
New
York
Hanseatic
Corporation,
Herbert Gesell,
Fred Moore,
Boston
Incorporated 1915
ARTHUR W. WOOD COMPANY
We have
a
continuing interest and invite
your
inquiries in-
Dennison Mfg. Co. Com. & 8% Deb.
Eastern Utilities Associates
Haverhill Gas Co.
Lowell
Electric Light Corp.
Ludlow
Manufacturing & Sales Co.
England Electric System
Towle Manufacturing Co.
New
Western
Massachusetts Cos.
Vic
19
CONGRESS
ST.
BOSTON
Telephone LAfayette 3-0810
9,
MASS.
Mosley, Stroud & Company, Incorporated, Philadel¬
phia; Stanley Jackson, Estabrook & Co.
Vernon
Hall,
W. E.
W.
Hutton
E.
&
Hutton
Co.;
&
Gilbert
Lothrop,
Co.
Teletype BS 1059
CLAYTON
UNDERWRITERS
DISTRIBUTORS
SECURITIES
Coffin & Burr
Specialists in
Incorporated
Founded 1898
DEALERS
CORPORATION
PRIMARY
MEMBERS
TRADING
MARKETS
Trading Markets in
OVER-THE-
New England Securities
MIDWEST STOCK EXCHANGE
MILK
79
BOSTON
Direct
STREET,
to
9,
MASS.
BOSTON
NEW YORK
v n
HUbbard
COUNTER
Telephone
New York
WHitehall 4-6437
HARTFORD
BANGOR
2-6065
SECURITIES
Teletype BS-30
MEMBERS
Boston Stock Exchange
and to
Portland
PORTLAND
Wellesley
Midwmt Stock Exchange
American Stock Exchange
(Associate)
G. A. Saxton & Co., N. Y.
H. D. KNOX & CO.
INC.
DAYTON HAIGNEY &
Members
KELLER BROTHERS
New
York
27
STATE
eoocA^otoe^ CO.
CO., Inc.
Security Dealers Ass'n
STREET
BOSTON
9
,
DIRECT NEW YORK-BOSTON TELEPHONE
Telephone CApitol 7-89S0
Bell
DIRECT
ZERO COURT STREET
BOSTON 9, MASS.
TELEPHONE RICHMOND 2-2530
TELETYPE BS 630
System
WIRE
11
Teletype BS
BETWEEN
WORTH 4-2463
169
OFFICES
BROADWAY
NEW
Telephone
Bell System
YORK
DIgby
75
4
4-1388
Teletype NY
1-86
FEDERAL
STREET, BOSTON 10
Bell System Teletype BS 596
Volume 183
Number 5510
The Commercial and Financial Chronicle
.-..
(967)
31
\
Continued
from
unpropitious and investor apathy developed as a conse¬
quence or for some other unforeseen causes, the under¬
3
page
writer
The SEC
andFinancing
.
best efforts contract would find that he vir¬
a
on
tually had joined in
to the public.
a
firm commitment to make
refund
a
_
Of Small Business
<
.
The SEC, in its omnipotence, is now
„
trying to pre¬
public from speculating. By what authority, we
When we realize that the growth of this great coun¬
vent the
shall be offered for sale
in such State
or
Province
con¬
currently with the offering pursuant to this regulation";
This raised a storm of protest.
The Commission's
attempt to dicate the market place that the issuer must
choose met with strenuous opposition.
; ,;
Another anomaly was presented.
In our 48 states
regulation of the securities industry is varied and con¬
stantly changing. There is no uniformity. Where local
state requirements are contrary to those of the SEC,
whose jurisdiction would be paramount?
'
It was this dilemma, we believe, which impelled the
-
ask?
try of ours was considerably aided by speculation, that
j.
,
Commission
.V
'
abandon
to
this
offerings.1
'
,
.
proposal in Regulation A
■&''
r."
.:v%
v
r
of the early speculative issues are the blue chips of
we are led to wonder whether the Commission is
doing us incalculable harm as a nation.
many
Allen & Co. Arranges
Teleregister Financing
The
Teleregister
Corp.,
of
Stamford, Conn., a subsidiary of
Ogden Corp., has arranged to bor-'
row
$11,000,000
Life
Insurance
and
the
from
not
of
are
particularly troubled by the ability of the
nullify acts of Congress, as it is here seeking to
do. Fortunately there are alert statesmen in our Congress
who are alive to this possibility and, we hope, will not
let it go unchallenged. They will not permit to be undone
by the Commission what our legislators have done for
small business.
Mutual
Much
could
of vision
the lack
be said about
The
understanding behind these releases, but then our
Co.
Insurance
credit
electronic
with-
used to
will be
proceeds
finance
data-handling
systems and other manufacturing
operations.
manufacturer
A
Telereg¬
manufactures
also
ister
electronic
of
boards,
machines
quotation
reservations
processing
and
Life
will be a revolving
Irving Trust Co.
stock
more
York
York, secured by collat¬
trust
bonds and $6,000,000
■■
However, the last proposed revision retains this objectionable requirement in relation to issuers who conduct
of New
New
eral
We
from the Mutual
Co.
Irving Trust Co. Allen
& Co. negotiated the financing.
Of the total, $5,000,000 will be
in the form of long-term loans
today,
SEC to
>
lines- and
for
air¬
railroads.
or
propose to conduct their principal place of business
operations in Canada (Reg "D").
analysis would have to become quite technical.
.
These must
qualify
;
will be
conducted, which securities must be offered in such Prov¬
ince
concurrently with the offering in the United States.
That the argument
even
that
between the, SEC
arose
Province
as
of jurisdictional disparity applies
potently here, is clear from the differences
more
the
on
and
our
least
at
interpretation of
it relates to violation of
our
one
Canadian
extradition treaty
than there is under
Reg "A."
The Commission,
blithely on its way,
seeking, as it repeatedly has, more and extended powers
to do more useless work, when, if it stuck to its last,
it would increasingly be, as it now is, considerably over¬
manned. This is more imprudent waste of public money
by an administrative agency which was created to operate
in the public interest. >
y '
however,
goes
v
t
The earlier release stated:
would
"Provision
otherwise to
assure
have
deluge of releases pertaining to
proposed
powers,
new
to
be
over-staffed
Now Cleek-Tindell Co.
or
SEC Commissioners re¬
with offices in the Paulsen Build¬
long
so
as
a
temporary
lucrative jobs, and permit them¬
more
easily indoctrinated by
unrealistic and
an
ing
to
business
are
of
urer;
M.
investment
A. Cleek.
Officers
President;
Cleek, Secretary and Treas¬
and Jack R. Tindell Vice-
Melson
H. M.
the
continue
A.
Cleek,
President.
personnel.
to
be
made, by
ll
CEMENT, LIME AND
II
INDUSTRIAL PAINTS
AND
$165 Million of
CONSTRUCTION
CHEMICAL
COATINGS
MATERIALS
43.5%
26.5%
1
I
I
§
AMERICAN-MARIETTA
Products Sold During
CONSUMER PAINTS
AND
^
HOUSEHOLD PRODUCTS
13.3%
escrow
or
the return to subscribers of the money
M
m
1
The latest
provision is that the offering circular shall
representation by the issuer and the prin¬
cipal underwriters that none of such securities will be
issued and that 85% of all funds paid in by subscribers
a
...a
I
unless six months after the commencement of the offer¬
Accomplishment
for 14,800
)
A~M Shareowners!
•m
1
0
ing 50% of the securities originally proposed to be of¬
fered and sold hereunder has been sold and paid for in
cash, and
a description of the arrangements made for
the holding and return of such funds."
Great Year of
w
for the securities sold hereunder will be returned to them
NET SALES
(Millions of Dollars—Pro forma)
173
130
...
The first recommendation called for
of money paid by investors for
was not sold in six months; the
85% of such
a
return of
100%
all subscriptions if 85%
last* calls for a return of
paid for subscriptions if 50% of the
money
125
100
50
25
issue is not sold in six months.
There is something diabolical
about both these
pro¬
wonder whether the SEC hasn't deliber¬
ately set out to over-ride Congress, and through its rule
making to completely emasculate and abolish small busi¬
ness
issues, this, in effect, repealing the law relating
posals, and
we
thereto.
NET
INCOME
(Millions of Dollars—Pro forma)
12
11.1
of
First
buys stock he wants it
delivered, whether or not he is called a "subscriber."
What does the SEC mean by "
none of such securities
will be issued
?" Will the purchaser wait six months
all, when
a
man
.
.
or
any
quid
Then
he
the
as
can
8
.
pro quo
and wants it
to the issuer.
get it.
securities
10
.
substantial fraction thereof?
wants his
as
.
.
are
on
He will not!
the line.
5.5
He
3.8
2.8
3.0
<//////.
1951
1953
in the first instance.
»,
Any broker-dealer would have to be
sign an underwriting agreement containing
these provisions which the SEC envisages. After all he
is not a clairvoyant; yet, if the stock market turned
a
moron
to
Copy of the 1955 Annual Report
1955
sent on
purpose
But could he?
1954
of American-Marietta Company will be
on
the very
A
Y.Y/--Y,-
1952
it. A long wait such as six months may defeat
of the offering and render the issuer
bankrupt. This is assuming he could get an underwriter
depend
Ww
He wants his money as soon
Customarily he receives his share as
being sold. His very existence may
s
rules intended to enlarge the Commission's
will continue
stepping stone to
selves
rules
SPOKANE, Wash.—Cleek-Tin¬
dell
Co., Inc. has been formed
gard their functions merely in the light of
$
paid in unless at least 85% of the total offering is sold
and paid for within six months after the commencement
of the offering."
contain "...
new
securities laws.
Equally true is it that there is no more justification
dictating the market place of issuers under Reg "D"
for
The
make eligible their securities
or
in the Province in which such operations are or
I
HUll
request. Address Dept. 9
AMERICAN-MARIETTA COMPANY
101 EAST ONTARIO STREET, CHICAGO If, ILLINOIS
Revelations in Progress
t
Through Modern Research
32
Financial Chronicle... Thursday, February 23, 1956
The Commercial and
(968)
mainly, to persons, and frequently require hospitalization, medical
treatments, etc., the cost of which may go on for long periods.
^
WALLACE-
,•: ■
,
1945
I
Continental Casualty Company, as
in 1897 under Indiana law; but
its domicile was changed to Illinois in 1948. The title was changed
to the present name in 1900.
Capital at the start was a modest
$100,000, with surplus at $60,000. Numerous capital increases were
made to help finance the company's expanding business, some by
the sale of new stock via subscription rights; others were stock
started
was
by
1954—Two-for-one
carried
these
to which it
of
for each
one
Continental
holdings
paid
shares to
District of
1.26
2.95
0.60
171/4
143/4
147/s
interest of
some
$17,300,000,
24%
subsequent
0.75
19%
26%
161/2
33.30
1.24
1.75
0.76
2.22
0.94
263/8
221/4
36.35
2.34
1.95
1.59
2.70
0.94
411/4
1.03
.
39.47
...
4.90
2.30
3.18
4.03
1.25
48%
6.81
2.68
3.63
5.86
1,331
93
521/2
Adjusted throughout for
stock dividend,
1%
a
paid in
Auto
Liability,
10%;
15%; Hospital
and
took
The latter stock 13
considered to have out¬
standing possibilities. /
In April a shareholders' meeting will be asked to authorize
in
increase
ment of
an
the
company's stock outstanding to permit the pay¬
25% stock dividend. Continental Assurance holders are
a
to meet in April, too, to
authorize a stock dividend of three new
shares for each 13 held (approximately 23%).
Except for the year 1933, dividends have been paid uninter¬
ruptedly since 1906. The shares are on a $1.40 annual basis, and
as this is only about a 52% pay-out related to investment income,
a
continuation of the rate on the new capitalization after the
25% stock dividend is a logical expectation.
Liquidating value, as noted above in the statistical record,
increased 175% in the decade; net earnings 208%; dividend about
120%. The gain to the stockholder was $42.13, or at an annual
rate of $4.21 a share.
The 10-year underwriting profit margin
6.3%
to the end
stock
ranks
of
the top grades in the insurance in¬
dustry.
Accident and
Group
from
4
page
4%; Auto
Property
Damage,
6%;
Surety, 2%; Miscellaneous 8%,
tribution of its
Physical
Auto
has
reported
The company's geographical dis¬
a
top grade underwriter.
that in
ness
1954 every one
turned
losses
in
Another outstanding performance
This
was
of
one
the
economic
into
—
and ,with
economic
India—the
has
scored
Soviet
into
extended
writings,
but this
coverage;
Continental
category
Casualty
not
was
having
of
one
toward
Turkey and Pakistan with tompelling economic enticements and
calculated
for
psychological
To mature
this
new
citizens, the signs of
and
most
aggression should
pany's assets
United
of
were
States
1954, the latest full report available, the
broken down
Government
Machiavellian
now
other nations
admitted
aims
be clear.
munism.
Other Governments
2.5
v
o.l
Utility Preferreds
Utility
Common
Stocks
Railroad Common
Bank Stocks
Insurance
Stocks
unestimable
Soviet in
0 6
7.3
This is in
.Whereas
best
people
justers,
bare
assets.
keeping with the
a
nature of the casualty business needs.
fire company's loss is
speedily determined by the ad¬
this
is
not
possible
in
casualty
losses
as
these
relate,
Study
on
Christiana
NATIONAL
of
INDIA, LIMITED
Bankers
Securities Co.
Bulletin
«.
on
Request
.
BANK
Kenya
Head
the Government in
Colony and Uganda
to
Office:
26
Bishopsgate,
London, E. C. 2.
West End
(London)
Branch:
13, St. James's Square, S. W. 1.
Branches
Laird, Bissell & Meeds
Members New York Stock
Exchange
Members American Stock
Exchange
UO
v
BROADWAY, NEW
YORK 5, N. Y.
.Telephone: BArclay
7-3500
Bell
Teletype—NY 1-1248-49
^(L. A. Gibbs, Manager Trading Dept.)
Specialists in Bank Stocks
in India, Pakistan,
Ceylon,
Burma, Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and Somaliland Protectorate.
Authorized Capital
£4,562,500
Paid-Up
Reserve
Capital
Fund
£2,851,562
£3,104,687
The Bank conducts every description of
banking and exchange business.
Trusteeships and Executorships
also
undertaken
the
the
com¬
arts
social
of
their
inde¬
and
by
and
in
And
insecurity
memories
colonialism
once
identified with the west, the peo¬
ples of Asia
tempted' to chance
are
Soviets.
advantages
that
their urgent prob¬
of
means
developing
that their
achieve
may
a
measure
of
from
the
endless
circle
unknown
imperialism
of
the
in
have
may
Although the situation has long
little serious po¬
litical
challenge was offered to
preciated the plight of the under¬
developed nations.
Through the
investment of billions »of dollars
and
through
sought
to
various 5 aid
help
til recently.
the
pro¬
as
a
matter
of
in
the
critical
under¬
slow
nations
put
In
our
foreign aid planning, how¬
appear "t© have
over¬
First,
we
ignored
or
seem
the
to have
The
second
which
have
the
of these
areas
instead
grams,
of
Indeed, in
our
aid pro¬
gaining
friends, have earned instead
ity
the
and
consequences
backed
nuclear
a
up
command,
power
by
the power of
and
strategic
the West achieved
weapons
practical
military
ganda
on
old
incessant
balance
of
which checked Soviet mil¬
military
logical
wholly
With
areas.
ambitions
halted
that
was
pursue
Meanwhile,
Union, whose borders
of these nations, has
an
a
by "positions of strength," it
us
many
maintained
of
positive foreign military pol¬
icy in Europe and Southeast Asia.
Relying on the strength of NATO
in Europe and
SEATO in Asia,
em-
suspicion.
Soviet
adjoin
factor
to
may-
crucial
free
not
world
given sufficient weight is the
industrial
of
rate
enormous
growth in the Soviet Union
the past 10 years.
initiated
over
In short, when
all-out
economic
after the Geneva
war
Conference,
she appeared to be able, in rea¬
back
measure, to
the
in
her
up
underdevel¬
services.
propa¬
barrage, playing skillfully
suspicions of colonialism,
and
most
important, is
policy has not,
yet employed peaceful nuclear
as
constructive force
a
overcoming
in
of
some
the
most
the
Kremlin
its goals in the economic
sphere. And the economic "soft¬
ness"
is
of
the
world's
underdeveloped
weak
spot
in
the
underdeveloped nations.
parently,
nized
the
have
the
world.
luctant.
Nor, ap¬
Americans recog¬
immense
versaries
psychological
Signficantly,
have
not
our
ad¬
so
re¬
been
Whether it be recognized
propaganda
as
or not, the prom¬
responsible Soviet leaders
of
large-scale atomic aid in Asia
and in the Middle East have been
effective.
Should the
Soviets
ac¬
tually deliver, and there seems to
be no practical reason to deny the
possibility if it is in their inter¬
the
est,
lose
forces
the
of
freedom
economic
forces
of
doom
the
aggression,
world
to
war
to
domination—without
Last
and
may
the
thus
communist
a
bomb
ever
Nov.
9, in a speech here
York, before the Society
in
New
of
Industrial
Realtors,
I
pointed
that "we Americans not only
know
how
to
merchandise; we
out
have, indeed,
in this respect, no
possess also,7 in
development
of
peaceful
atomic energy, what I consider to
be not only the greatest product,
masters.
We
now
our
the
but
greatest
product
symbol
nations
the
industry be permitted to aid
as only it can in the marketing of
that product and of that symbol.
"I
missed
our
Soviet
many
great
very
ican
we
itary expansion in all
East.
in
us
and
attain > it
to
means
in the world. I propose that Amer¬
looked three, crucial factors.
and
Middle
pat¬
peril.
evo¬
lutionary development.
developed nations of Asia, Africa
the
may
and
sufficient time for traditional
air
adequate
been
of any aggressive Soviet economic
intervention, there seemed to be
and
charted, notably in Europe,
been largely in¬
policies un¬
Economic progress, in
fitful, and
crises frequent, but in the absence
been
efforts have
aid
underdeveloped
have
practical necessity and as a moral
obligation.
Although success has
our
conventional
our
ever,
The United States has long ap¬
-
integrated
an
military, economic,
being dropped.
v
remained grave,
of
subsistence.
grams, the American people have
New
dy¬
world
their
hated
na¬
overcome
relief
of
for
conditioned
the
the
their latent resources, so
and Miscellaneous Assets
above, account for 56.4%
the
serve
are
in
distress.
emotional
*
categories of bonds,
seek
millions of Asians that America is
hot
material
the
as
make up the remainder.
All
all
psychological
of
Many of these
war.
it
distortion, the Soviet strate¬
have managed to convince
either
productivity, low liv¬
ing standards and over population.
All, for better or for worse, are
advocating rapid industrialization
13.0
Estate, Cash, Agent's Balances
d
lems of low
o.7
y
~~~
I.IIIIIII
-
Stocks
will
3 3
.
Miscellaneous Common Stocks
Real
those
i]\
4*7
Miscellaneous Preferreds
cold
of
are
ai
have just recently won in¬
dependence in the breakup of the
old
colonial
systems.
All
are
highly nationalistic, impatient for
0.9
Railroad Preferreds
employ
tern
tions
o.3
Miscellaneous Bonds
—
or
:
29.6
State, County, Municipal Bonds
Utility Bonds
all
meeting the Soviet challenge and
gists
of
the
and ,to
result, to deduce from
possible consequences and
to
ises
cision,
material
23.1%
of
Masters
responsible
imihense,
unused resource—both human
follows:
imagine
an end
it
persuasion and the art of histori¬
three-fourths of the world's popu¬
com¬
fact does
of disaster that
namics
economic
value to
as
Obligations
plan
energy
Poverty, turmoil, and dissenin
The largely agrarian, underde¬
veloped nations which make up
the
it.
At the end
Asia,
we have, somewhat belatedly, be¬
gun the re-evaluation of our for¬
eign aid programs..; Inability or
cal
incite¬
ments to hatred and violence.
was
heavily
gone
to
in
solution—nor in
one.
turning
the
seized
value of atomic energy as a sym¬
bol of hope in these regions of
tion
now
have
initiative
critical economic problems in
notable
war
is
may
thwarted
nationalist
aspirations and actual unremit¬
ting poverty. The Russian prop¬
aganda campaign offers no real
lation of virtue of their
in
minor
position.
leaders
that our foreign aid
seemingly
frightening advances. The of¬
and
of serious
years
all- in
of
fensive
underwriting profit margin in
even
force
—
In China, in 'Afghanis¬
in Pakistan, in Malaya, and
most
of the company's 12 major lines of busi¬
profit.
a
an
unusually favorable showing
course
channels.
tan,
:
Continental
military
a
unchecked
writings is widespread, the volume in New York
each year for 20 years, an
of
effort
off balance and
Now that the
us
psychological
in
'State, the largest in 1954, constituting about 14% of total direct
premiums.
well have put
Third,
For Peace and War
4%;
Damage,
policy, the very
gle-phase " military
as
by
by an
foreign
dynamic
out
full-scale
for
oped nations with tangible goods
Mobilization of the Atom
26%; Workmen's Compensation, 8%; Liability, Other than Auto,
10
appealing
economic
force of our sin¬
Unsupported
and
and
Health,
past
offensives.
propaganda
written, at the end of 1954 showed
12%;
ground
the
pare
economic
sonable
Continued
plant consists of nearly
the
over
indicates a calculated nur¬
turing of unrest in the underde¬
veloped nations in order to pre¬
years
Russia
1954.
among
Accident Only 5%; Accident and Health,
Medical,
Soviet
the
unwillingness
rapid growth of Continental Casualty stock marketplace after the acquisition in 1952 of its interest in
more
23,000.
Allocation of net premiums
of
Soviet
of Continental Assurance.
shares
casualty company's stock.
agency
sematic
and
363/g
52.91
_
The
Casualty is licensed to do business in all states,
Columbia, Canada. Its
Ex¬
psychological
strategy and tactics
the
of
237/s
..
was
If the life com¬
held.
'
0.87
wise
valuation of over $84,000,000,
a
than $37 per share of the
Continental
1.03
to be priced at the present
were
market, it would give the holding
more
3.17
2.48
The
Casualty at the end of 1954
100 of Continental Casualty
pany's stock held by the parent
or
an
approximately
at
21.70
3.16"
stock dividend in Continental Assurance shares
a
13%
1.00
"
100% owned; and United States Life, about 51%
States Life,
12%
16
1.47
1953
five
approximately 36%; Transporta¬
Continental Assurance also holds
in United
19V2
0.60
United States Life.
Continental Casualty's interest is
tion Insurance,
0.69
1.89
stock dividends of 25% in 1950 and 33 Mi % in 1952,
and for two-for-one split in 1954; and as to liquidating value for issuance of
new stock via rights in 1947;" No adjustment made for contingent Federal income
tax liability on unrealized equities.
permit multiple line writ¬
ing, as it had been an accident and health specialty writer.
Net
premium volume increased from $16,700,000 in 1929 to $161,300,000
in 1955, putting Continental into
12th place among the stock
groups. This large gain was the result of aggressive underwriting
policies and the company's leadership in new types of writings. Its
accident and health lines, including group and hospital and medi¬
cal, account for about 58% of total premium volume; and the
company is ranked among the leaders in these underwritings.
Its affiliates are Continental Assurance, a life writer in which
owned.
$0.60
1.79
0.78
1.20
1954,„__.
revised in 1950 to
was
$1.90
0.57
0.89
2.99
1952
2,000,000, par $5.
The charter
$0.46
0.97
1.77
2.02
tAlso
bringing the outstanding
split,
$0.78
1.40
1951
held.
.
$1.58
21.71
-
of social and economic ag¬
gression ready and waiting.
amination
26.07
*
dividend of 33%%.
131/2
30.69
1950—Stock dividend of 25%.
1952—Stock
Low
1949
Those for the past decade were:
1947—Rights to subscribe at $40 for one new share for
H.gli
1950
Continental Assurance Company,
dividends.
Div.
22.99
-
1948
Earn.
17V4
__
1947
Net
Taxes
$22.17
-
1946
Continental Casualty Company
Business
have
grams
Price Range
Federal
Income
Profit
Value
Share*
Record—Per
Adj. Und. Invest.
Liquid
By ARTHUR B.
Statistical
10-Year
military stalemate
had
alternative
pro¬
eventual
the
and
Bank and Insurance Stocks
long foreseen
have
leaders
their
free
global defense structure.
Indeed, it is quite in keeping with
long-range Soviet planning that
respectfully suggest, there¬
that the President of ' the
fore,
United States, or his
the
delegate, call
industrial, scientific,
nation's
business and communication lead¬
ers
to
a
White House Conference
for the express purpose of formu¬
lating those
specific marketing
plans whereby the promise of in¬
dustrial atomic energy—of 'atoms
for peace' may become a reality
for the peoples of
Asia, Africa and
the Midle East."
I
should
like, today, to renew
that appeal to our President.
The
major problem of today, I
our need to under¬
think, lies in
stand that power for peace
merely military
economic
greatest
joint
power.
power
power
is not
it is also
And that the
power;
for
peace
is
the
of the military atom
and the economic
atom, combined
Number 5510... The Commercial and Financial Chronicle
Volume 183
(969)
acting in combination as joint direction of national defense has pace with the market demand. In
our foreign policy.
changed drastically over the past addition, we could expect to seThe free world must mobilize for 10 years. New weapons, such as cure, it seems to me a muchaircraft, guided and meeded impetus in reactor design
peace as it has mobilized for war supersonic
in the past, and as it is now mo¬ ballistic missiles, and new devel- and technology which would be
bilizing for defense.
What is opments in explosive atomic en- of vast' benefit to our economy
33
and
instruments of
heeded is the binding concept of
defense
in
the
deepest
all-out
of the
phrase—-the massive
broadened
from its posture of passive or re¬
taliatory military 'strength to an
sense
deterrent
principle
active
and continuing campaign
social, economic and psycho¬
logical fronts.
Faced with the
on
realities
of
communism, we must
positive lead in the
destructive aspects of the atom
maintain
but
a
unleash
also
must
we
the
creative power of atomic energy.
Our atomic posture must be, I be¬
lieve,
the
on the evidence presented,
upraised
arm
of
military
atomic power and the outstretched
hand of economic atomic power.
These
together
are
for
power
peace.
The word "peace" has not his¬
torically called forth the vigorous
emotional
response
induced by
the word "war," nor has it excited
that
kind • of
national
exertion
which»
industrial
submit, is
because past programs for peace
have
perform'
can
miracles.
But
been
that; * I
than
than
planned. I cannot help but be im¬
pressed by the thought that a
vast enduring peace might well
dynamic,
fee
achieved
planned
planned
rather
rather
passive
planless
if
for,
it
has
war
as
to
were
be
been
for; if we had, to sup-'
port our President, the resources
of a great general staff of scien¬
tific, political, social and economic
geniuses devoted to contriving the
master strategies and the master
tactics of peace;
if, to supplement
war
colleges, we had peace
colleges where men and women
by the thousands might be trained
our
in
the
psychological
if we had
a
mobilized force ready, willing
and able to plan years ahead, to
act, and to persevere for peace,
economic,
and social arts of peace;
i I fear, however,
have
we
been
putting some "first" things second.
; We
have constricted ourselves
in the
philosophy of mas¬
of de¬
narrow
sive military retaliation or
fensive
We
war.
have
not
com¬
prehended the scope of thinking,
planning and acting required to
solve the problem of the aggres¬
sor, when his aggression
is not
merely military but is also social
and
economic.
ulate
form¬
dynamic, multiphase, cen¬
tury-long campaign for the es¬
a
tablishment
order and
of
a
world
of
law,
—
-
and
-
the
economic
of the
be
of
one
instru¬
many
to establish and
perpetually main-
justice.
How, specifically, may our pow¬
for peace be mobilized?
How
specifically may the concept of
national defense be enlarged to
ers
crusade for peace?
peace
that blinds
itself to the presence and the po¬
tency of evil. But rather a peace
a
concept of
Not
a
foolish
a
tjhat supports both
thermonu¬
a
clear deterrent against the brutish
ignorance of military aggression,
and the mounting of a vast atomic
attack on the social and economic
imbalance
which
presently di¬
vides the world.
was
last
enduringly— with Eastern Buddhist, Hindu, and Moslem civili-
declared
the
on
We
summer.
free
would
to me, be able to
our
military lead time
equally vital economic
seems
balance
an
al
answer
to
all-inclu¬
no
these
difficult
questions. I'suggest, however, as
an approach that the
problem is
basically one of motivation, or¬
ganization and control
and
that the production experience of
American industry may hold
a
.
clue to
**
Let
.
.
even
examine for
us
a
moment
certain new development in
concerned
with
industries
defense
effort.
The
nature
those
our
and
selves like men
purpose
can
and pioneers."
R. S. Wllford Opens
economic planit remains the core
as
danger
un^resUmati'ng
seems
to
LA
MESA)
dsv-
competitive costwise with coal-oil power here in
ne United States
Atomic power
deal y
t
su
d
to
meet
exists
literally
less
export
and
components* in
market
oped nations.
of
also that
a
View Road,
HUNTINGTON,
for
bound¬
a
reactors
atomic
power
means
(fi
t
375
opened
NePw
a
York
Roy
g
JL J. Mack Branch
L. J. Mack &
a
would,
tional
course, develop addimarkets for all kinds of
of
goods*
and
services,
stimulating world trade and cer¬
consumer
assisting 'all branches of
American
industry.
American
science, technology and produc¬
tion skills
would, likewise, be
improved by being forced to keep
case; we don't know how long it
rapidly,
probably will continue; we anticipate no
ranking second in the industry in reduction in the revenue that we
this respect to El Paso Natural are now collecting under bond."
Gas. In 1954 both companies had
To cover its construction and
revenues
of $143 million — Ten¬
expansion program last year, the
nessee had $28 million in
1948 company sold $111 million secu¬
compared with $24 million for rities
$50 million mortgage
El Paso.
But in terms of increase
bonds, $25 million debentures, $20
in share earnings Tennessee Gas million
preferred (including $10
did better, earning $1.76 last year million for
refunding), and $16
compared with 71c in 1948; while million common 1 stocks in SepEl Paso probably made about $2.90
tember.
The company sold its
compared with $2.35 in 1948. Both American
Republics
stock
for
1955 figures include revenues col¬ about
$20 million, enough to cover
lected under bond and subject to the
purchase of Bay Petroleum.
regulatory approval.
Currently, the company is selling
Tennessee's expansion program $40 million $4.50 convertible sec¬
last year included the laying of ond preferred stock.
some 783 miles of pipe, the prin¬
The year 1955 was a very good
cipal construction being a line year for Tennessee, with an in¬
from the company's storage area crease in Mcf volume of
7%, in
across
northern
Pennsylvania, revenues
(including
rate
in¬
New
Jersey,, and
Westchester creases) of 16%, and in net avail¬
County, N. Y., attaching to the able for common stock of 42%.
New England line at Greenwich. On a consolidated
basis, the com¬
very
—
The
extension
new
opened
Opens
Co., Inc. has opened
r
LYNN, Mass.—Mann and Gould
have opened a branch office at 23
under
the
man-
agement of Clinton R. Gould.
Whitney-Phoenix Branch
PASSAIC,
N. J.
—
to
a
other line
to
of
new
facilitate
Two
reserves.
purchase
new
com¬
stations were built and
four enlarged.
These new facil¬
ities
will
greatly improve
the
company's
sales diversification.
pressor
has
northern
end
become
now
a
of
the
system
thousand-mile
loop affording great flexibility in
In 1944 the com¬
pany's entire output was sold to
marketing gas.
only two customers, but in 1955
76, the largest taking 31%
and the next largest 25%.
The
company has never failed to meet
the requirements for service nor
has
it
allocated
ever
or
prorated
V' •/
1955
Whitney-
Phoenix Co., Inc. has opened a
branch office at 18 Broadway.
the
this
summer
storage field will gos'nto
Ultimately therms will be five
cf top storage,
billion feet
this
a
days.
storage
around
of
31
$1.40,
4.5%.
of
and
the
The
331/3%.
the
on
the
recent
price
dividend
rate
yields about
price-earnings ratio
stock
approximates. 17.6% which, while
above
average,
reasonable
may
not
considering
be
the
enues
and
un¬
com¬
pany's growth record both in
rev¬
net per share.
AREA RESOURCES BOOK
explains why the
area
we
offers
A
so
serve
much
opportunity
to
industry.
Write for
0*$
FREE
COPT
WW
Box 899,
Dept. K
Salt lake
City 10.
day for 77 sustained
In
connection
operation
a
peak-
which
particularly
house-heating business.
The com¬
will also store gas for
Utah
with
popular in
England and is stimulating
proved
pany
dividend
Based
re¬
and also a
issue
new
equal to a
shaving tariff was installed
New
stock
the
share
a
which
giving the company some 77
billion
peak
flected
shares,
■
made its
from stor¬
another
service
supplementing the two already in
and
year-end
company
deliveries of gas
age,
on
about $1.76
earned
pany
built in Texas and
was
Louisiana
use.
City,
Avenue
up
share of the rich
New
York
City - Northern New
Jersey metropolitan market. An¬
company
fields
Central
■
Tennessee Gas Transmission has
grown
first
branch office at 50 Broad Street,
New York
,
:
In
large^share of the cost
underdeveloped nations
..-
Marjamaa.
Z™d, Anfi^ge'scafetdttSiI New Mann & Gould Branch
ization of
Gas
Avenue, under the management
fJj
Company
Transmission, a Service of New Jersey during the
leading natural gas wholesaler summer and deliver it on demand
with
annual
revenues
of
over in the winter, at an extra charge.
$168 million, operates some 8,300
Tennessee now produces about
miles
of
pipe
line
from
Rio 20,000 barrels of oil a day.
In
Grande Valley in Texas north¬ connection with its oil and
gas
easterly across Texas, Louisiana, activities, last year it acquired
Arkansas, Mississippi and Ten¬ Bay Petroleum Corp. for about
nessee to Greenup, Ky.
The sys¬ $20 million. The two plants are
tem then forks, one branch ex¬
being expanded and modernized
tending to Charleston, W. Va., and and are expected to fit in very
the other across Ohio, Pennsyl¬ well
with the company's opera¬
vania, New York and into New tions.
■. /'
;
■
•.
England.
Deliveries
are
made
The company is also stepping
principally to subsidiaries of Co¬
up
its gas reserves and during
lumbia
Gas
and
Consolidated
1955 acquired over 2 trillion cf
Natural Gas, but the New England
of reserves, bringing the year-end
pipe-lines
serve
35
regional
figure up to 13 trillion cf, or a
utilities.
Service
to
the
New
20-year supply.
These reserves
York metropolitan area began in
are in 201 separate fields in Texas
November, 1955.
The company and Louisiana. The
company has
buys most of its gas needs, but is
proposed building
a
new
line
also engaged in oil and gas pro¬
through the midwest to connect
duction.
;i ;;V(V V
" with the
projected Trans-Canada
Tennessee Gas at the end of
Pipe Line, which if accomplished
1955 had an installed delivery ca¬ will
open up for the
company
pacity of about 1,730 million cf large reserves in western Canada.
per day, and had a peak day of
Regarding rates, Tennessee Gas,
1,882 million cf in December and in common with other major pipe
in January another peak slightly line
companies, collects substan¬
higher, with a daily average in tial revenues from proposed rate
that month of 1,840 million cf. increases "under bond" or
subject
President Symonds remarked "the to FPC
approval. The company's
gas business is good and if it will
rate
case
was
reconvened
in
just stay cold and windy we will January, and President Symonds
do even better,"
stated "We feel we have a strong
Tennessee
it had
N.Y. —Family
have
Investors
branch
underdevel-
Anfc the competitive
d
F
underdeveloped nations.
There
s.
securi-
_
generally
fh"d 'L\t
the needs
Raloh
a
Upens Branch Ufiice
atomic energy simply because ft is "
of the
_
of, soeio *-economic
advantages
Tennessee Gas Transmission
The
t!es business from offices at 10005
chotgicaT humane a^raXal^untry
not
CaIif
me* in wi]ford is, engaging in
Immense
the
By OWEN ELY
the
be served by East and West than
that of nation helping nation to
bring the fruits of science to a
long-suffering humanity. Let us,
then, "be strong, and quit our-
international
ning,
tainly
the solution.
zations.
No higher moral
power—must be the matrix of
our
feature
"Certainly, I have
sive
moral
world
grave
■
great
which
taina world of law and order and
of
those
and ethical traditions which Western Christian civilization shares—
not always too steadily but yet
with
ments in the service of a program
of
power
wholly appropriate to
extend this kind of systems thinking to the all-out economic war
chological strategy and scientific lead time; and, strengthening our
industrially,- strengthen
strategy are prime but integrated friends
factors.
In
such
a
long-range also our own economy, science
planning,
military readiness and technology.
would ' be a vital factor — but it
Atomic power—not conventionwould
other material power whatsoever:
the
seems
strategy, economic strategy,
psy¬
welfare
nation and the free world.
Utility Securities
defense efforts,
.
then, it
on a
our
industrial
on
,
"systems+eoneept"—in which military
justice based
and to
In an address before the World
management. So interrelated are Symposium on Solar Energy two
the
complexes of systems and months ago, I proposed a mulcomponents, so specialized are the tilateral,
multipurpose program
skills needed to produce and inte- which
envisaged the establishgrate them, that only a very high- ment of a World Energy Comly specialized form of organiza- munity. Such a community would
tion can provide adequate direc- be essentially a partnership betion of
the
processes
involved, tween the various free governThe relatively simple production ments and their respective indusline concept and the one-project tries to promote and to utilize the
research and development effort completely free and independent
of
pre-World War II days are exchange, on a "need to have"
wholly unsuitable now. :
basis, of the most advanced power
A high degree of objectivity, sources — solar > energy,
atomic
flexibility, coordination, commu- power, and perhaps, eventually,
nication and control are indispen- fusion power.
;
f
same tor the design and construer This program, if implemented,
tion of such radical products as would be an economic example of
a nuclear submarine, a supersonic
the systems concept in action,
bomber, or a ballistic missile. And The concept of. balancing the
these are best achieved not by a world's needs with the world's resingle-unit organization attempt- sources—of deterring or immobiling in itself the development, izing or excising the war cancer
manufacture and assembly of the —would stimulate the interrelamany
necessary
highly special- tion and interaction of the whole
ized components, but by a plan- and its constituent parts, would
ned composite of separately man- serve as the coordinating agent in
aged industrial units, each sharing mobilizing
resources,
men
and
a
part of the production respon- ideas. The needs of each free nasibility; yet all assisted, guided,^ion, therefore, would be set forth
integrated and shaped into a per- by the logic of its present stage
fectly functioning organism by a of &onomic development and by
centralized and objective policy "the image
or
projection of its
and planning management'com- future structure and function,
plex. Thus, a maximum of effiFor some two years I have preciency results from each unit or sumed to urge these rather lonely
division concentrating on its pri- views on the government and on
mary product, while the steersindustry. I note now with gratiman
function
interconnected fication
that the recently pubwith operating functions through lished Report on the Impact of the
media or coordination, communi- Peaceful Uses of Atomic Energy
cation and control can plan and confirms and supports these concoorctinate ail eiforts.
tentions. American industry, howSuch presently changing con- ever, has not as yet responded to
cepts of management are, it seems the challenge,
to me, the industrial counterparts
Yet, all the elements are presof the weapon's system concept, ent for
American industry and
or the responsibility for the comgovernment to initiate and direct
bining of diverse men, personnel, a
free
world
mobilization
of
machines
and
ideas
toward
a
atomic power for peace. The free
single end. There is nothing es- jqations,^.together, stilP have the
sentially new or radical in this most efficient and comprehensive
approach, but its efficiency as av production plant in the world,
management technique is becom- They :still possess a qualitative
ing abundantly manifest.
and quantitative lead in scientific
And it is the purpose of these and technological research] Above
new
torms
of corporate and di- all,
the free world is dedicated
visional organization—these prod- still to that power for peace which
uct
and
services
systems — to surpasses military atomic power,
serve
both the military defense or economic atomic power or any
technology and
It
'* We must, it seems to me,
placed colossal burdens
ergy have
on
Public
Public
UTAH POWER
& LIGHT CO.
Serving in Utah
Colorado
-
-
Idaho
Wyoming
Financial Chronicle... Thursday, February 23, 1956
The Commercial and
34
(970)
businesses comprise some 95%
The claims of the International-Great Northern 5s and 6s of
r
$1,325 and $1,390 respectively
-FIRST
Bid Price
Railroad Securities
•
♦Accrued
refunding
the
for
or
81
116
108
_
T~7—
the
on
i.
..
—
— —
divided into
first
"and interest"
.
.
accruing from
1,250
the
«
•
The
is evaluated
as
127%
1.5%
There is
&
no
Mexico
;;
-
Principal
Bid Price
However, the present price of 24 for the
give
$608
762
$800
76
Series B4%s
1,073
71
$1,873
$1,370
Equivalent price
Market price QMOP 4s, '75
% indicated gain
The
$2,159 total claim
Continued
.
$588
jrom
Newer
page
•
It
Series A 434s
1,354
Series B43/4S
217
76
71
Indicated
Totals
$564
1,029
j:
because of the
situation,
management policies in small and
$2,159
—
carefully . conceived
and"
skillfully carried out
more
•
much
more
than at any time
Missouri Pacific 5V2S of 1949
170
-
abstention from alarm
last
Incidentally, those of
4%
are
follow the
who
you
dealing with Ca¬
nadian matters may have noticed
the unsecured obligation of
100% in cash. It is
conclusion of the
of the market
news
mercial
vances
able
Indeed, there is little or
effect, it is not at all
commercial finance
in
for
1941.
This
been
a
crease
up
being unsecured
It will be recalled
instalment that this latter issue is described as
and
without
ference
sinking fund, and that its noncumulative interest has the thin margin of being covered only
about 1.15 times overall by 1955 estimated earnings applied on a
pro forma basis. Accordingly, these 90-year debentures are quoted
a
recent
65, but with over 5 points of accrued interest in¬
The value of "QMOP" 5%s is thus heavily dependent on
how .these
debentures
work
out
as
the
following
evaluation
suggests.
Principal
Value
Series A 4%s
Bid Price
Indicated
"w. 1."
$152
Series B 4%s_i
200
71
142
Income Deb. 5s
1,819
65
1,182
$2,219
Equivalent price
Approximate Mkt. QMOP 5%s__
Indicated gain %
$1,476
147%
145
1.8%
leave
I
has
desig¬
it
in
to
to
the
very
consumer
im¬
agination as to what may have
transpired
at
this
conference.
~
your
However, you can be sure of one
thing: the policy laid down at
these conferences is rigidly ad¬
hered to but formulated
basis.
untary
76
called
past relative
Mkt. Value
$200
Totals
was
credit.
at only about
cluded.
Canada
nated persons or groups of a par¬
ticular industry.
One such con¬
$1,819 of the claim by the income debenture 5s.
last week's
in
conference
a
of
vol¬
on a
this
Does
contain the answer to
qualitative credit
approach
some
Query:
our own
The Commercial Finance Industry
in
a
Tight Credit Market
Because of the
tight credit
ket, today, there has been
a
mar¬
sharp
advice
and
counseling, relative to up-to-date
merchandising and sales methods,
and
other phases
of business ac¬
tivity, where needed.
by the industry in
past
further
there
substantial
Examples of Special
has
in¬
year
30%
over
what it
Accounting Aids:
to
was
take
not
into
feel, are advising their clients in
regard to the day-to-day opera¬
tions of their businesses. Incident¬
consideration
other types of financing
engaged in by commercial finance
companies such as the financing
of
commercial
and
industrial
market but because of the expan¬
sion
of
of
the
services
our
and because
in the
special
economy
increase
offered
by
the
finance
companies.
Our
from
its
developed along
industry
very
has
lines
specifically geared to the peculiar
and pressing needs of small and
medium-sized
businesses.
Inci¬
dentally, as you probably are well
aware, small
and medium-sized
to work closely with
accountants who, we
firm's
the
the many
equipment, inventory financing,
rediscounting, etc.
We
find,
however,
that our
market has expanded not only be¬
cause of a tightness in the money
With respect
it very
accounting aids, we find
important
1954, or at the yearly rate of
$4 billion.
Of course, this
Aids to Small
Business
Medium-Sized
and
some
birth
problems?
cost
(3) to give
recommend
technical
of
sources
in this form of financing—
some
does
bank
actually
to
(4)
ad¬
accounts receiv¬
compared to the $536 mil¬
financed
lion
called
in for
open
amount of
quality controls,
practical business advice and aid
in
planning expansion and ac¬
quisition of new facilities, and
com¬
funds.
company
gross
and
—
the
central
on
for
accounting methods,
proper
by commercial finance com¬
when
of series A
Trom
companies to (1) recommend the
improvement of financial plan¬
ning, (2) to assist in setting up
panies totaled approximately $3.2
billion
a
phenomenal growth
in
balance of
finance
the
1954
In
from time to time intriguing little
articles reading to the effect that
treated
and B of the general income 4%s and the
place: COST SAV¬
INGS,
EXPENSE REDUCTION,
and PRODUCTIVITY IMPROVE¬
•
in the demand
increase
and its most junior obligation, and this issue
accordingly in the reorganization plan. Of the $2,219
total claim of this issue per $1,000, $400 is settled by equal amounts
the bankrupt road
is
in the past. Our,
present competitive economy i3 '■
sounding more emphatically than
ever
those three insistent words
Concepts of Credit
And Voluntary Control
year's recession, so
now
they are keeping a sharp
lookout and are not being carried
away by boom psychology.
$1,747
167
was
during
174%
Market price of 5%s
Indicated gain %
competitive
medium-sized businesses must bef
•
So,
not the sole
there
154
Equivalent price
almost without saying,
goes,
credit, and
6
responsibility of
any
one
group
in th6 country.
Trade
groups
for business and
banking exercised discretion in
policy and planning, and just as
was
Mkt. Value
96
re¬
The early
that-J/currently,
MENT.
1.1%
Series C4%s
merchandise
allowances.
experience of the commercial fi-'
nance industry also demonstrated
the clients of com¬
mercial finance companies were
as much in
need of management
advice as of funds.-'
'
135%
"w. I."
in
and
hope for present management
where these concepts are ignored.
137
Bid Price
|oans provides
no
$1,000 of "QMOP" secured serial
5%s is met in part by an allocation of first 4V4S, but to a greater
extent by the general income 4%s of both series as shown by the
following "package" allocation per $1,000:
Value
of its
The super¬
that many of
funds.
per
Principal
con¬
the borrowing com¬
current
and
unusual
Totals
of
preparation of reports that
clear statement of changes;
quality of receivables gen¬
erated
turns
Mkt. Value
Series A 43/4S
a
in the
problem to the evaluation of the New Orleans,
bonds.
The $20 million first 4X/4S series A are
reorganization to facilitate the cash option.
♦Before
is
the effectiveness
and
ment
vision, of
.
the option of the holders, the latter may take
intended to arrange an underwriting at the
Indicated
"w. i."
Value
still
report regularly on the gen¬
quality of the receivables
as loan security. Through
for the
follows:
.
say
industry showed
collection procedure.
v
reserved for par for par exchange for the three NOX issues, or at
.
to
objective opinion
of the risks ac¬
cepted by its own credit depart-
places a theoretical price of 480 on the Class B stock.
common
;
Texas
current
pany obtains an
on
the quality
stock is to receive 1/20 share
$5 per share dividend preference of Class A.
Moreover, these
earnings could vanish rapidly in the case of a downtrend of even
mild proportions because of the high leverage against this small
issue. There has consequently been little in the way of an attempt
to value Class B and there is no "When issued" quote for it as
Vj- old
the
statement
and
was
these reports,
a
Class B common which, because of its small amount—40,657
shares—enjoys the seemingly fabulous figure of $155* per share
earnings on the basis of pro forma application of 1955 estimated
earnings. This, however, is "before funds" and there are no cor¬
responding earnings actually available for Class B because of the
temporarily over-large capital fund deduction and because of the
there is for the others.
busi¬
services, I believe
finance
it
pany
of
•
discussing
factual
a
variety of
great
a
the years.
offered
.
common
fi¬
siderable value to management to
have the commercial finance com¬
throughout that there is little left in the MOP issues on a short
or arbitrage basis, but this has no bearing on what future
values may be. \
are
$1,873 per $1,000 of the "QMOP" general 4s of
"package" allocated per $1,000' principal of this issue
is
that
129%
Pacific preferred with
commercial
that the early history of the com¬
term
among the weaker of the rail
nevertheless quite realistically
valued at present quotations. In the first place, the quoted prices,
unlike those of the first 4%s, are "flat" and contain about 5%.
points of interest accrual from Jan. 1, 1955. Secondly, if these
bonds had a 4%% coupon like most rail income issues, they would
sell 4 to 5 points lower to produce the same yield.
The greater part of the general income 4%s goes to meet in
1975.
Before
*
it
$1,294
adj. 6s
spe¬
available
medium-sized
and
over
nature of these
share—i.e., 4.42 shares.
Each share of old MOP
full the claim of
174
*442
156
"QMOP" preferred. At the current bid price of 39% for Class A
price for "QMOP" preferred is $104.50 per share
as against the corresponding market price of 103% for these shares
on the New York Stock Exchange.
The indicated percentage gain
here also would scarcely cover the costs of making the conver¬
sion from the old securities to the new. It has been quite plain
thus rank
bonds they
39%
>
812
;
the "work out"
ing after that on series A.
bonds
65
share including cumulative dividend arrears
general 4%s series A and series B are quoted at 76-77
respectively, the difference reflecting the longer term
mortgage
small
total claim of $264.50 per
is settled in full by
allocation of 2.645 shares of Class A common per share of
Missouri
to
quoted at 99 to 100 depending on series and accrued
are selling at a virtual parity with the new first
While these
v: 71
which
techniques to
eral
second lien
income
220
of the
made
companies have developed
through the application of their
nesses
$152
•.
-$2,112
♦Stated at $100 per
protective margin of series B. Both are secured by the
on all of the road's properties subject to the first
4%s. It will be recalled from last week's column that the series A
43/4S have pro forma overall coverage of interest of about 1.50
times based on 1955 estimated earnings whereas the corresponding
ratio for series B is about 1.33 times, the interest on series B rank¬
'
76
services
services
Mkt. Value
"w. 1."
$200
Equivalent price
Market price IGN
Indicated gain %
I
and lesser
•
is
ana¬
nance
Indicated
Bid Price
is the nature
mercial
71-72
Fame
company
financial
by commercial finance companies?
Generally
speaking,
they
are
another junior
6s,
adjustment
Value
Totals
4,/4S plus the interest accrual thereon.
The
What
cialized
•
-■'
Class A Common
interest claim
and
133%
0.75%
•
leplace the "reefers" par for par, viz., $500 of series B and $500
of series C, to make up the "package" for each $1,000 "reefer."
The new first 4V4S are currently quoted around 96% bid and the
"reefer" 5s,
127%
4^*, since there was no payment on IGN
QMOP 5s in the first half of 1955.
Series A 4%s
just under 5% up to the present. This accrual is offset, however,
by varying amounts depending on the series and interest dates of
the "reefers" on account of the payment of coupons on the latter
which fell due in the first half of 1955. The "reefer" 5s, which
sell at 99 to 100 depending on the series, have the claim on this
interest accrual as well as on the principal if the first 4V2S which
'
130%
———
Northern
Income Deb. 5s
the claim of the
(3) to apply in
proportion to the claim of the MOP secured serial 5V4S.
first 4%s are traded
of
or
134%
3%
Series B 434s
the property
The 20-year series A 4%s are to pro¬
cash repayment at par of the New
1, 1955 dating of the plan and this accrual amounts
—
Principal
'■
described) (2) to take care of the greater part of
International-Great Northern first 5s and 6s and
new
combination
services no fee is charged
expected, and the cost is ab¬
sorbed in the financing charge.
$1,345
$1,390
*
applied (1) to settle the principal claim in full on the Missouri
Pacific "reefer" 5s (the interest having been paid up as previously
The
88
61
$1,309
5s and 6s
be
the Jan.
of
the
lyst, business engineer, consultant
on
sales and merchandising, and
a host of other things.
For these
to the coupons paid on
International-Great
Orleans, Texas & Mexico first 4%s, 5s and 5%s while the series B
and series C 4%s of 35 year and 50 year terms respectively will
smaller
in
Today,
besides
supplier of liquid funds,
a
commercial finance
a
bond, receives the following "package" in settlement, but which
recognizes the claim of this issue of $2,470 per $1,000 only to the
application of the new first
4V4S which, as described in last week's column, are
three series all secured by the overall first lien on
vide
interest
bonds corresponding
„
of the consolidated system.
•
v—
of the Missouri Pacific and its subsidiaries
is to outline the
order
in
521
$1,325
_
that are involved.
First
$675
574
57
Equivalent prices
Market prices Ign.
Indicated gain %.
for some 23 years. The present
instalment will present the evaluation of the treatment
provided for the issues
;
being
companies
States.
many
and last of the series on this
bankruptcy trusteeship
in
and final
$700
515
'
Totals-
subject which
is believed to have represented the occasion for the most wide¬
spread speculation over the longest period in any single situation
in recent history.
Last week's instalment was devoted to the
development of the background of the new issues set up in the
pending "agreed system plan" for the reorganization and con¬
solidation of the Missouri Pacific and its subsidiaries which have
been
76
$656
*Cash
Reorganization—III
Missouri Pacific
This is the third
Mkt. Value
$680
96
4%s
Indicated
Value
a
96%
Ser. A
GERALD D. McKEEVER
Principal
Mkt. Value
Value
4,250,000
United
(is-
537
Ser.B4%s_—
Ser. C 4%s
By
-FIRST
5s-
Indicated
Principal
"w. i."
the
settled and evaluated as follows:
are
ally, the modern accountant seems
to be moving more and more into
management engin¬
of
field
the
This is a field, which, bythe way, the accounting profession
allowed, in the past, to go by de¬
fault to others not having the ad¬
eering.
.
vantage
.
of
the
thorough
back¬
each client's problem
that the professional accountant
has. We find that working closely
ground
of
these
with
aid in
men
is
an
invaluable
developing joint recommen¬
dations.
In
our
business we have
the op¬
portunity to view many types of
operations, and thus can draw
from others' experiences and pass
~
PI t
nL
""
b-nniirl
"*
do
4^
/\4-V»n*«c«
A
d
Volume 183
an
Number 5510
example,
many
experienced
erans
with
bay
opened their
extruding
green
the
as
insofar,
as
after
the
such fabricators expand their sales
take
for
have
i
services
our
casualties
number
which
a
find
••"•■-'•the'-
a
that
Aids:
Very
often
has
not
that
is ,suffi¬
ciently awake to the possib.l ties
management
and^potentialitieshvof the business
«?5f
hev is conducting.
tions,
In these situa¬
believe that the recom¬
we
mendation of
particular business
a
counseling
or
warranted
^nd
engineering firm is
recommend
we
firms that may be of help to manman¬
agement. For example, it is fairly
knowledge
common
small
panies
that
even
medium-sized
and
com¬
learning
are
benefit
to
from automation.
However, man¬
is not always aware of
agement
the
fact
by redesigning dif¬
ferent products so as to give them
certain common components the
volume may be increased to fully
justify automation in the produc¬
tion of the components.* In perti¬
nent instances, we have recom¬
the
employment of
counsel in industrial design so as
to give the product the necessary
components
common
take
in
order
to
advantage of automation.
Sales Aids: Where
there is
feel that
we
in regard to sales and
distribution,
recommend the employment of
sales and distribution counsel if
we
recommendations
own
sufficient.
new
are
products fail
consumer
achieve
to
you
of the fact that four out of
aware
five
believe
I
;
*
in¬
are
acceptance.
consumer
guess work, flaws in ex¬
selling, and a host of other
reasons, are often given as the
for the failure. The intro¬
reasons
duction
of
products involves
new
too many
marketing hazards to be
given« anything
less
than
the
gravest consideration by top man¬
agement.
firm
A
of
competent
counseling specialists initiates and
coordinates
ing,
all
the
planning
creating,
screen¬
of
marketing
and
accounts
receivable
inventories, the financing of
iPresent
industrial
Chemical
)w
Airlines
Company, Mon¬
Company,
Na¬
Chemical
tional
giants! like
and
others,
financing in
their early days-when they were
utilized
many
commercial
veritablethe industries where footfledglings—to get a they
hold
in
now
are
leaders.
profits resulting
on
from
higher
.costs of labor in the prime labcr
markets in 1S55 wiil mean higher
..prices
for
steel
;materials in
basic
Because of the
competitive market, it will
severe
•not
other
and
1956.
be
easy
higher
costs
to pass along these
to
customers.
To
'counteract the cost squeeze, prac-
.tically all managements
are
con-
.sidering increased mechanization,
automation and other investments
which
and
■
will
tend
to
reduce
labor
costs.
administrative
Close
attention is also being given to tie
need for rearrangement of plant
j
setup, diversification of produ:ts,
^acquisition cf raw material facil¬
ities
and
new
outlets via
market
the merger route.
;
Commercial Financing
...
v
,
Key to
—
Business Growth
-
,
-
No true observer of the Ameri¬
can
scene
mous
is
unaware
of the
contributions made by com¬
mercial
banks
companies
growth of
industries
in
insurance
and
the
tremendous
our economy
in
the
and of our
20th
Future historians will, I
write
enor¬
as
glowingly
century.
am
about
sure,
it
as
present historians write about the
to
net
a
to
fair
a
that the finan¬
say
cial service rendered by commer¬
cial banks, insurance companies,
small, medium.-sized and big busi¬
ness is the epitome of our whole
commercial and industrial system.
The many forms of nuances of
this service have grown with the
Ampriran
the
the
trade
for
industry—the National Com¬
year
mercial
Finance
group
Conference—of
T
the
tn
hn-n-
^
°
hiph
„
^
Chairman, inyited its members to
participate in an award program,
i.
in
send
e.
companies
nanced
their nominations
which
and
of
use
they
which
outstanding
thev
eronomv-
have
~/rom tie exu!
their
had
kerant anq rapidly developing industrial life of the United States,
had
of
fi¬
achieved
acceleration
the
of
rate
productivity
the
in
the
and
growth of our national
economy which is presenuy pusheconomy wmcn is presently pusninS toward the $400 billion Gross
National Product
goal, an un¬
precedented opportunity presents
amazing
itself to American financial insti¬
tutions to reach the
that
have
horizons
new
in
ushered
been
with
growth through the ^atomic era.t
commercial
finance
large number of
a
small- -and
medium-sized
panies
sent
were
to
com¬
Smith, Barney Group
awards
our
Offers Miehle Shares
committee of which Dean G. Row¬
land
Collins
the
of
Graduate
School of Business Administration
of
New
\ork
Chairman.
the
names
members
ords
University
in
sent
supporting
statements and
on
was
Of course, along with
of the nominees, our
sales
before-and-after
a
fi¬
rec¬
basis.
In each
instance, the companies
with very limited capital
started
and
each
attributed
its
rapid
growth to the availability of funds
from; commercial
panies.
finance
com¬
•
j..
'
I
would
like
to
give you the
history of one of these com¬
panies which received an award:
case
(1) The O. A. Sutton Corpora¬
(Wichita, Kans.)
•
tion
.
Just
Sutton
000
14
years
when
ago
incorporated, it had
order
for Beach
to
make
O.
aircraft
A.
$20,-
a
par.s
Aircraft, five employees-
working in a Wichita garage and
$2,000 of working capital.
The
machinery
and
equipment
had
been
purchased
numerous
on
defense
increased
company
credit.
With
contracts,
its
the
employ¬
circulator
in
The
first
public sale of shares
of Miehle Printing Press & Manufacturing Co., Chicago, 111., one of
the world's largest manufacturers
of
printing
im¬
most
ent
outlook
several
for
of
areas
assessed
as
each
of
spending
these
be
may
follows:
took place on
Feb. 21 with the offering of 267,856 shares of the company's class
presses,
back
this
up
McGraw-Hill fore¬
is generally agreed, how¬
that the rate of increase in
plant and-equipment spending in
1956 will be substantially lower
cast.
It
ever,
than the rate which
(1) Government Spendin g—
Figures on government spending
for
an
the
third
annual
full
year
cline
in
quarter
of
1955, at
rate, compared with the
1954
show
with
total,
a
small
the
de¬
drop
in
Federal spending almost made up
by the rise in state and local out¬
lays. The total figure for all three
categories is $76 billion as an an¬
nual
rate
1955
as
in
the
third
quarter of
against
little
over $77
probability
seems to
favor a slight increase
in government spending for
m government spending for 1956.
195b.
The defense budget is indicated as
being $700 million higher.
The
billion
for
President has
creased
be
a
The
1954.
asked for
further increase in state
a
local
in¬
some
foreign aid, and there will
and
spending. Thus the govern¬
spending
factor
will
be
definitely on the plus side in its
effects on business activity, par¬
ticularly in the second half of the
calendar year. If there should be
•'
_
The names of
the
odds
portant. In my opinion, the pres¬
ment
com¬
■'■■ni-Xu..
funds.
pany
by all
course
In closing, I believe it is
statement
Moderate Year Ahead
1954.
Conclusion
j
With
Last
VornadQ^air
squeeze
1948
profit of $1,471,278 in
.
1945. The company captured more
The
in
7
r,
change
a
and other financial institutions to
products.
Such a -firm ment to 300, bqught its own manthe
products,
pricing, ufaeturing plant and increased its
packaging, advertising, sales pro- net worth to approximately
$200,motion, channels of (distribution, 0CO in less than two years,
etc.
It is a fact that competent
in
anticipat-on
of
peacetime
counseling specialists have helped operation,
Sutton
bought
the
many
businesses achieve higher patents on a rather radical new
ratio of sales, a lowering of sa es electric
fan and
introduced the
cost, and a resultant increase in new
Aids:
possible
loss
net
a
Continued from page
35
company
commercial finance companies
a
new
Production
from
made
finance
host of other methods
lent and
pretests.,
profits.
In sumttiary, the use
commercial
funds
industry that
our
developed the vast
financing, the
of
dollar-wise.
\f secured commercial financing,
Costly
ternal
their
to
pommercial and industrial equip-
management deficiency
a
and
nancial
'
■our
md
that
mended
was
santo-
the--client
indus-
field of installment
quarter-
year.
.''Management
It
understand
something like
of-a-million
-V
I
contributions
(971)
of
.
takes great-pride^n its par-
\financing
they would
of business
list
the
ancient
r-*' *
finance
growth.
advantage of opportun¬
joined
•"
ticular
ities/ in the aluminum field where
but
commercial
war.^ shaped
We have been able to help many
and
try
fabricating and
plants
The
,
concerned*
were
own
the
.
tree
business matters
The Commercial and Financial Chronicle
ambitious vet-- seven wonders* of
in
working world.
^
"*
aluminum, but
proverbial
...
any.
further
rise
in
government
spending beyond that indicated, it
in the
probably will be
national defense.
Here
I
forbear
cannot
of
area
a
state¬
ment of personal
conviction to the
effect that I sincerely believe we
should be spending more for na¬
tional
defense.
think
I
there
is
a
of
quarters
manifest
was
firsthand
the
between
1955.
fourth
The, eventual
figure, of course, will depend on
how strongly
consumer
demand
is sustained in 1956 and may also
be
affected
materials,
of
by the availability of
well as the supply
labor.
Shortages in
as
skilled
steel,
freight
aluminum,
and
might have the effect
copper,
cars
of stretching out plant and
ment spending
for
equip¬
longer period.
a
(3) Inventory.—Inventory build¬
ing is likely to continue to be a
plus factor for at least a consid¬
erable part of 1956. The reversal
of
policy
by
many
companies
inventory depletion
to one of inventory build-up was
an
important ingredient in the
from
of
one
strong 1955 recovery.
By October
the increase amounted to approxi¬
mately $3.8 billion
previous
against the
as
October.
The
rise
be¬
tween
September and October was
$740 million. This was a greaterthan-seasonal
and at the
rise
same
in
inventories,
time sales
rose
a
little less than seasonally. If such
a
month-to-month advance were
to
be
maintained,
suggest
course
ventories
nearly
at
it would of
increase in in¬
an
an
annual
billion.
$9
In
rate
all
of
likeli-
hood more recent figures will in¬
non-voting common stock by a
growing recognition that we are
dicate
a
of
investment
bankers
inventory
losing the cold war, that, in fact,
headed by Smith, Barney & Co.
build-up but not at so high a
as
we
are
now
waging the cold
rate as in October.
The stock was priced
at $24 a
war, we cannot stop the Soviets
share. Of the shares offered, 50,Although new orders received
from winning it. Should there be
000 shares represent new financ¬
by
manufacturers
in
October
an
increase
in national defense
dropped as compared with Sep¬
ing by the company and 217,856
outlays, however, it is clear that
shares are being purchased from
it would not be likely to have tember, where ordinarily the sea¬
sonal
selling shareholders.
tendency is the reverse,
much
economic
effect
in
this
nevertheless the backlog of un¬
Net proceeds to be received by calendar
year unless the turn of
A
...
,
continu|d
group
the company from
additional
the sale of the
will
stock
be
applied,
together with other Miehle funds,
to purchase all of the outstanding
shares
of
Folder
Dexter
Miehle has owned 50%
sinde
will
become
v
a
Miehle,
purchase
wholly-
incorporated
in
1890,
wide variety
offset
a
of sheet-fed letterpress and
types and sizes de¬
the requirements
of
presses
signed
to
meet
of the
expanding graphic arts in¬
and cutting and creasing
presses for the folding box indus¬
try. Miehle
also manufacturers
dustry,
electric
motors
for
its
of
the
so
serious
as
anticipation
increased
to
by
defense
spending.
own
use,
and electric motors,
motor brakes,
and generators for sale to others.
Dexter Folder Company manufac-
was
a
sharp turn¬
spend¬
from a first-quarter
rate of $25.7 billion to a fourthquarter
rate
of
$30.9
billion.
Speaking here last year, I said,
"With the current rate of popula¬
cated,
there
around of this category of
in
orders
to
of
manufacturers
rise.
Also, as re¬
earlier, the ratio of stocks
sales, standing at 1.5 at the end
marked
of
(2) Business Spending for Plant
Equipment.—As already indi¬
and
ing
filled
continued
to
Co.
owned subsidiary.
produces and sells
be
substantial
business
of Dexter
with this
1927 and
Dexter
should
events
cause
1955,
tion
growth, with continued high
expenditures for research and de¬
velopment, with the current inter¬
est in automation, and with the
growing tendency of businesses to
undertake long-range planning of
their capital requirements with¬
out trying to guess the business
w?i. 8
8
fi
;
k
•
cycle, there is an excellent basis'
for
substantial
capital
goods
October, apparently continued,
notwithstanding
the
inventory
build-up, to be lower than it was
All this seems to spell
inventory build-up in the
early months of 1956, with the
rapidity
and
extent
depending
considerably on
the
course
of
prices as well as on the avail¬
ability of materials. Naturally any
a
year ago.
further
continued
or
enhanced rate of in¬
ventory build-up contributes to a
higher rate of business activity
until
a
Thus
while
a
is
turning point is reached.
inventory building is
plus factor at the time when it
occurring,
and
it
is
a
two-edged
extreme
inventory
fiuctuations can do great
than 10% of the nation's fan sales 'turers bindery equipment; paper
damage
in the first year. But in about feeders for printing presses and
economy
This is one of
spending in the years ahead. In the business indices
which execu¬
two years the.sales far surpassed other machinery used principally
the
absence, however, of
some tives should
watch most carefully
the company'sjability to maintain in the graphic arts industry.
dynamic stimulus to this kind of in 1956. The faster
a
proper
inventory or continue
inventory rises,
The
company's
sales
in
the spending in 1955, the prospect is the sooner
a turn will come.
manufacturing without additional sheet-fed
letterpress field are be¬ for a somewhat lower rate than
working capital. So, in 1948, a lieved to be
(4) Construction. — Authorities
1954
and
larger than those of in
consequently
for
on
the construction
commercial fifiance company exindustry look
any of its competitors, domestic some adverse effects on business
for another rise in over-all builds
tended a line of credit of $150,000 cr
foreign, while in the sheet-fed generally." Well, we did get that
on accounts receivable and an ining in 1956, but much less pro¬
offset
field
the
Company
has dynamic
~
~
~~
stimulus, and
it ap¬
ventorv line o£,the same amount,
nounced
than
the
upswing of
increased steadily until it is a parently was a combination of
1955.1
even though tLpe Sutton Corporaleader" in
this
| Although the number of
phase
of
the the unexpectedly high level of
tion showed a net loss of more
consumer
industry.
spending,
some
in¬ housing starts is expected to de¬
than $100,000.
In June of 1949,
cline from the 1955 total of some¬
long-range planning of
Combined sales of Miehle and creased
Sutton had current assets of about
Dexter during their latest fiscal equipment
expenditures,
and, thing over 1,300,003 to perhaps a
$800,000 to payocurrent liabilities
figure between 1,150,000 and 1,quite important, the existence of
years ended Oct. 31 and Sept. 30,
of a half a million and had a net
200,000, nevertheless total con¬
1955, respectively, totaled $34,- an atmosphere which might be
struction contracts in dollars are
worth of nearly $600,000. In 1952,
423,779. Net earnings amounted to described as the "Eisenhower con¬
Sutton entered the air conditioner
estimated at 3% above the 1955
$1,995,177, equal to $2.45 a share fidence boom."
field which is proving as equally
figure because of
increases
in
on the number of shares to be out¬
At the
successful as the air circulator.
present time the De¬ non-residential
building contracts
standing, adjusted to reflect a partment of Commerce estimates
However,' in 1948, when Sutton
and even larger increases in
recent 2-for-l stock split. Figures
that plant and equipment spendoriginally sought commercial fi¬
public works and utilities con¬
on the same basis for the respecing for the first quarter of 1956 tracts. In some
nancing,
its total annual sales
quarters, doubts
tive first quarters of the current will be at an annual rate of $31.6
were about $2,500,000 with an in¬
have been
ventory
of
and
$150,000
accounts receivable
each.
In
January,
1954, Sutton's sales were nearing
$40,000,000 mark with a net
the
profit cf $1,500,000.
receivable
The accounts
amounted
to
almost
$5,000,000 and inventory was over
the $2,000,000.
In less than six
O. A. Sutton with the aid
commercial financing gained
years,
'0f
first place in sales, both unit ar.d
fiscal
and
$755,403
sales
$9,902,103
were
years
net,
equal
to
93c
per
share, against $8,137,679 sales
and
$517,826 net,
their
pany
last
has
dividend
able
fiscal
or
64c a share in
years.
a
a
declared
of
March
37Vzc
15,
•
i
billion.
of
The
McGraw-Hill
businessmen's
weapon;
expressed
survey
intentions
with
to
purchasing
of
new
and equipment—a survey
which
has
established
a
very
respect
construction
plant
furnish
com¬
respectable record for accuracy of
minrtprlv
to the
as
ac¬
of the foregoing estimate,
but in general it appears that the
curacy
industry
substantial
will
again
support for
a
prediction—sets the probable rate
The
quarieny
lncreage
a
share,
1956
to
holders of record March 8.
pay-
stock-
in
these
i'ays7n"l956"atl3%
capital out.
above 1955.
Currently estimates of the Department of Commerce tend to
Continued
on
page
36
1 Thomas S. Holden, Clyde
Shute, and
George Cline Smith (F. W. Dodge Cor¬
poration),
"Construction:
Growth
In"V," Architectural Record, November.
1955.
36
The Commercial and Financial Chronicle
(972)
have
35
Continued from page
and
volume of business ac¬
the final
forecast
is dependent on the monetary and
banking
situation
and policies
pursued by the Federal Reserve
System.
Significant, perhaps, is
the fact that a slight easing of
mortgage credit has already oc¬
curred,
as
of mid - December,
through the action of the Federal
tivity at a high level. In
analysis, of course, this
Board.
Bank
Loan
Home
Consumer Spending.—Per¬
consumption is the major
flow of spending, amounting at
the current rate of 65% of the
Gross National Product.
Of the
increase of $32.7 billion in Gross
National
Product
between
the
(5)
,
sonal
third
of 1954 and the
third quarter
quarter of 1955, personal con¬
sumption
increases account for
spending for
$18 billion, business
the rest.
all
spending
consumer
1956?
in
ning at an annual rate of $310
billion, as against $288 billion for
the full year 1954, will continue
to show
some
increase, perhaps
according to some fore¬
high as $320 billion be¬
Support¬
rising,
as
fore the end of the year.
these estimates are the high
of employment, nearly 65,-
ing
rate
following
the
for
reasons:
(i) Inventory of relatively new
in the hands of consumers is
cars
higher than at any recent time.
(ii) Higher list prices for 1956
tending to arouse some con-*
are
resistance.
sumer
(iv) The 1956 models, on the
whole, do not represent as many
innovations
merchandising
and
features
new
did the 1955 mod¬
as
high
is
support
to
evidence
(down
in November
mobile sales
March-to-September monthly average),3 the ris¬
ing stocks of cars (nearly 800,000
at year-end), and
the lfinds of
deals already being offered by
from the
22%
dealers
University of Mich¬
The recent
igan survey of consumer attitudes
toward spending for
durable goods
that
the
rates
the up
plausible
trends in wage
present
and
volume
of
on
consumer
If
business invest¬
of
and
that
Outlook Summary
business
the
when
slackens a little, and par¬
ticularly
if construction shows
signs of dropping substantially,
greater ease will doubtless appear
in interest rates.
(As earlier re¬
marked, the Federal Home Loan
Bank Board has already moved in
this direction.) On the other hand,
Now what does
paoe
to with respect to
strong inflationary pressures
should become evident in prices
rise rap¬
idly in the spring of 1950, a fur¬
ther
short-term
of
tightening
rates would be in order.
all this add up
the 1950 outlook
something like this:
(1) A strong plus factor will be
business spending for plant and
equipment.
_
a
(2) Inventory building will be
plus factor for the early part of
the
period,
conceivably a minus
by the end of the year.
factor
(3) Construction will be slightly
the plus side, but perhaps only
on
it is
I think
ion
reasonable opin¬
a
the Federal
that
today
Re¬
authorities will be success¬
serve
accomplishing their pur¬
that the boom will be mod¬
in
pose,
erated without
throwing the
econ¬
also
Government
spending will
somewhat
on
the
plus
be
side.
'
:
.
(5)
Consumer
although there is running ahead
some
skid,
possibility
term
situation
may
least
one
into
omy
a
that
more
short-
the
require
application
at
of
of fiscal matters,
On
the
score
are
only two comments to
the Federal budget
situation will probably not be a
significant factor in the 1956 busi¬
ness trend.
Although the budget
make,
spending, while
for
considerable
a
part if not all of the year, never¬
theless will not be so strong a propellant of business boom as in
1955.
brakes.
First,
In
this
perspective,
appears as a year
vance, a
ary
year
then, 1956
of moderate ad¬
in which inflation¬
forces will be held in check, a
year of some
flattening out,
a year
the rising reveals no
in which gross national product
change from the pre¬
tendency in average weekly hours,
vious survey in June, 1955.
In is approaching a book balance, the and total retail sales may well
41.2 in November, indicating more
other words, consumer attitudes
possible increases in foreign aid make new highs but which, by the
overtime;
and advancing wage remain
favorable, but lack of a and defense spending may post¬ time the 12th month rolls around,
rates, average weekly
earnings
step-up of demand may be taken pone this development. Neverthe¬ quite conceivably could witness a
standing $79.52 in November and as evidence of some
flattening out. less it is almost certain that a number of business indices in
continuing to increase. It is clear In the face of continued industrial
cash balance and probably some¬ moderate retreat—in short, a year
that
wage
rates
will advance
expansion it can be argued that thing over will be achieved at the of going slowly around a not very
somewhat further in 1956, espe¬
this
apparent flattening out of end of this fiscal year, in June, abrupt corner. This is a basically
cially as the new minimum wage consumer demand
may indicate a
1956.
Secondly, any change in optimistic forecast, since it en¬
rate goes into effect.
Farm in¬ downturn in the
in, November;
€00,000
presumably will decline
1956 than in 1955, prob¬
trend but
less
in
ably 5%
as
against the 10% drop
occurred
which
this
In
1955.
in
connection it is to be remembered
that, because of reduced numbers
of people on farms, per capita
than over-all farm in¬
ably less
factors
Further
come.
consider¬
declines
income
farm
contribut¬
ing to high personal income are
the higher rate of corporate divi¬
dends and
increase in inter¬
some
income.
est
in personal in¬
likely to be on the order of
(b)
Increases
come,
offing.
its downward
will continue
come
5% in the first half-year as com¬
Possibly, then, sometime before
the end of 1956 consumer spend¬
stantial rise in
turn.
savings, since con¬
be paying off old
would
sumers
indebtedness faster than they were
incurring
the
a
year.
If
this line
1956
the
of thought has
any
spending in
will not continue throughout
year
to be so powerful a
in
was
disposable
consumer
of
business
1955.
boom
it
as
In
greater relative
benefit consumers, but
yet
certainty
no
there is as
such reduc¬
of
(c) But what will
with their income?
it
will
they
is
rate
-5.8%
of
do
How much of
save?
The
the
at
now
consumers
savings
low
disposable
ratio
income,
of
as
compared with figures well above
7% which characterized the pe¬
riod from 1951
of
1954.
through the middle
In the second quarter of
according to the SEC, in¬
actually reduced their
.net worth by $500 millibn. 2 As
already remarked, the very sharp
growth of consumer credit by
1955,
dividuals
than
miore
$5
billion
(from
No¬
vember, 1954, to November, 1955)
a
measure
of the extent by
which consumer spending in that
is
exceeded
year
Is
it
will
occur
income.
consumer
likely that
similar growth
a
in 1956?
a
marked
attitudes
especially
In
ers
of course, depends
extent on consumer
toward
durable
automobiles,
goods,
in
1956.
the first half of
were
1955, consum¬
spending 13% of dispos¬
able income for durable
goods, in
2 Business
P"
trying to pull all these
pieces together into any coherent
picture of the 1956 outlook, it is
essential to consider
carefully the
of monetary and fiscal pol¬
icy and prices, since developments
here during the next six months
can easily prove
controlling of the
areas
whole
trend
of
the
Week, November
*
"
12,
19SS,
in
economy
1956.
In
the
monetary
and
banking
situation the basic fact is that the
Federal
Reserve
properly,
brakes
Board,
quite
trying to put the
is
a
on
boom that
threatening
During the
count
get out of hand.
past year the redis¬
has
rate
times.
has been
to
These
been
raised
brakes
are
three
power
brakes, and they have to be
plied
this
with
a
regard
skillful
the
done
a
very
ap¬
touch.
In
Federal Reserve
authorities thus far
The answer,
to
a
in
reduction
taxation
is
still
without saying
reduction, and, in¬
deed, the anticipation of it, would
possible.
that
It
such
goes
a
favorable
a
effect
on
busi¬
visages no more than the kind of
readjustment with which we have
had
experience
during
recent
years.
Of course, this forecast is
barring any unexpected "monkey
wrenches"
Next
we
remarkable
to prices.
The
period of price stabil¬
come
bad consequences
in
of
a
(c)
cycle
.
remains
general
to
translate
expectations into
of
department
spring
store
season
a
The textile industry has a
of its
Own
of
some
18
to
two
years,
and this
cycle is due to turn down at some
point in 1956, although perhaps
not in the first half.
Everything considered,
fore-
a
cart of department store sales 4%
higher
for
the
February-July
period as against last year seems 1
reasonable
with
of increase
earlier
extra
the
better, rates
probably falling in the
months
day: in
in
view
February
of
and
the
the.
earlier date of Easter.
(2) Gross Margin. — On gross
margin the modest improvement
of 1956.
(1) Sales. — Personal consump¬
tion expenditures should run as
but part
tained
even
or
enhanced
a
little.
Competition will hold
a
close
ceiling o* initial markon. Hence
any pick-up will have to come '
from lower markdowns, a possi¬
bility that should be aided by the
slight stiffening of retail prices.
(3) Total Expense.—In the ex¬
department stores will
still be contending with an ad¬
vancing hourly wage rate, a situa¬
pense area,
tion which has persisted through¬
out the postwar period and has
thus far kept most of the expense
control activities: rather. steadily:
behind
the 8-ball.
For
the
first
half of 1956-this pressure-majr be
alleviated somewhat by the firm¬
ing of retail prices just referred
to, which will be conducive to a
higher average salescheck. Per¬
haps, then, we might look for ex¬
pense ratios in the spring season
no higher than:last year and con¬
ceivably down by one- or two-,
tenths of a percent. '
nite advance
results
ity since 1951 has been a most
important ingredient in the high much as 5% ahead for the spring
level of prosperity in these years. season as compared with 1955;
(4)
gross
this
the
season
over
1955 and make
most
profitable spring
experienced in the depart¬
ment store business since the year
1948.
Now all this is not to say that
the business cycle is permanently
tamed, that our economy will al¬
ways get by with these rollingtype readjustments, that there is
no
longer any danger of a con¬
downturn
in
housing,
the general wholesale price index dicated by the lower rate of in¬ current
consumer
installment spending for consumer durables,
is deceptive, since the agricul¬ crease in
inventory accumulation, and busi¬
tural component has been steadily debt since September.
ness
spending
for
plant
and
There will be some shifts in the
dropping since 1951 and in No¬
vember, 1955, was 26% below the mix of spending. Automobile sales equipment. On the contrary, let
me be quick to say that our long
average of 1951, and since during will be lower in proportion; and
period of rolling readjustments in
most of this same period the prices food purchases
may also be down
a
generally high level of pros¬
of manufactured goods have been a
little, wholly because of lower
perity has left
us
with some
rising because of higher wage prices; services will continue to
dangerous strains in the economy,
costs
and
recently because of absorb the same or a higher pro¬
shortages of a few materials. In portion of the consumer's dollar. notably the agricultural situation,
the consumer credit
and
home
other words, the price structure is Hence it
might be expected that
mortgage situations, and perhaps
changing; it is reflecting the fact soft goods sales will gain a higher
also the disorganized condition of
that we do not have enough
steel, proportion, and on this basis it can
distribution in the consumer du¬
copper, aluminum, and newsprint, be argued that department store
rable goods field. In addition it is
while at the same time we have sales will show a
higher percent¬ fair to
say that more and more
too much wheat, corn, and cotton.
age of increase than total retail
in recent Months the pattern of
Continuation of these diverging sales. Supporting this
argument is
movements is indicated for 1956, the recent improved demand for events has become reminiscent of
but there is some assurance of
higher price ready-to-wear. There the old-fashioned business cycle.
reasonable over-all price
stability are, however, some considerations We are on a
pretty good path, but
in the fact that futures
prices and that point the other way:
we
are
not definitely and cer¬
sensitive commodity price indices
(a) There will not be any auto¬
generally are not signalling any matic shift of consumer
tainly out of the woods; and the
spending
notable
changes, with the pos¬ from durables to soft goods, at time to be afraid is when nobody
sible
exception
of
steel
scrap
least not so long as the merchan¬ is any longer crying "Wolf!" So
prices.
Consumer prices have also ex¬ dising and promotional efforts of all that I am saying is that we
Wholesale prices, at an average
of 111.6 in
1952, stood at
due
of this increase will be
to
slightly higher prices.
111.2 as of mid-December, 1955. Some flattening out of consumer
But increasingly this stability 6f spending, however, possibly is in¬
level
seem
to have
good job. The rela¬
short-term rates for
tively high
borrowing are designed to keep
a
check-rein on inventory expan¬
sion and on the possibly too rapid
growth of
high
consumer
short-term
3 December
parently
more
credit.
rates,
These
however,
sales, however,
favorable.
were
ap-
hibited
for
the
extraordinary
four years
1952
stability the soft goods industries are so
through definitely eclipsed by those of the
1955, with a range in the index
durable goods industries.
More
this period only from a low
of 112.4 to a high of 115, the latest probable is an increase of savings
figure. For the past year the ten¬ as consumers lighten their debts.
over
-
are
fore¬
change in
November.
Department Store Outlook
for the
big
general
merchandise
running- ahead more
strongly than: department store
sales. In November, Sears, Ward,
Penney; and Grant were all ahead
by 10% or more, while depart¬
ment stores were ahead only 6.5%.
,
chains
these
that
situation, such
Administration
cast
the
Net Earnings. — A better
margin percentage and a
possibly decreased expense per¬
centage mean fractionally better
earnings as a percentage of sales, ~
probably not so much of an ad¬
vance as the spring season of 1955
showed over the spring season of
1954 but nevertheless something
on
the plus side. No change in
corporation taxes seems likely.
Hence dollar earnings after taxes,
if the expected sales improvement
materializes, should show a defi¬
might get tossed
as serious
complications in foreign affairs or
any snowballing of apprehensions
among businessmen as to possible
into the
It
eral merchandise outlets. Sales in
-
Monetary-Fiscal Situation
Before
tions.
downward
ness.
a
support of this
income may
view may be urged the smaller in¬
increase
than personal income because of creases in consumer credit occur¬
possible tax reductions that will ring since September, v
ceivably
a
Nevertheless, political argu¬
ments, particularly in a presiden¬
tial
year,
are
more
compelling
than economic arguments. And so
have
new
opinion,
stimulant
show
guments are against a tax reduc¬
tion art the present time unless
obligations.
In
rise in savings to an
annual rate close to $20 billion,
perhaps to 7% or more of dispos¬
able income, should be regarded
as a possibility before the end of
my
After the middle of the year, con¬
same
of the fact that the economic ar¬
business should take
may
than
validity,
the
This is said with full recognition
be rising less rapidly
disposable income. Such a
reversal of the 1955 relationship
would be accompanied by a sub¬
ing
months of
1955, will of course be carried
through
to
disposable
income.
with
pared
taxation in 1956 is likely to be a
reduction rather than an increase.
(b) Department stores are still
some volume to other gen¬
losing
achieved in 1955 should be main¬
slightly.
(4)
Thursday, February 23, 1956
..
months
for the economy as a whole?
On
the balance of factors, I see it
iif
there
new cars.
on
volume
ment.
ful
There
dency has been slightly
side, and it is wholly
buying will carry this consumer
had price index as high as 117 some¬
to give the Treasury a lift when time during 1956. Again there is
the acceptance of a new issue ap¬ a balance of opposing forces, with
peared shaky.) In the meantime food prices trending down and the
the still relatively low long-term prices of nonfood items, as well as
rates are conducive to a continued rents and services, trending up.
and if inventories should
(iii) Credit is harder to obtain,
and somewhat more costly.
these views in the decline of auto¬
(a) Personal income, now run¬
casts,
think that
automobile sales in 1956 will be
lower by 1V4 or perhaps as much
as IV2 million units than in 1955,
I
els.
will
What
do
belief that in 1956 this ratio
spending on durable goods will
swing back to about 11% rather
than the 13% which characterized
is my
of
Specifically
long-term money rates. In the
may prove untenable.
(Note
the Federal Reserve recently
comparison with a figure of 14%
in 1950 and only 10% in 1946.
It
1955.
unprecedentedly
an
spread between short-term
long run, this very narrow spread
Moderate Year Ahead
sustained
created
narrow
;
quite
probably
encounter
the
are
big
not
going to
bad
business
cycle wolf in 1956, but don't let
yourselves
the wolf
no
become too
sure
longer exists.
that
Volume 183
.Number, 551^,.;. 'The/Commercial and Financial Chronicle
Continued
from first
the form
in
page
(973), 37.
y
as
will
Overseas Markets in 1956
temporary
leveling
off
period.
However, this stability will be
confined only to sales figures. A
shifting trend both in geograph¬
ical area and in composition of
shipments will highlight the 1956
U. S. export scene.
goal of
a
$500 billion gross national product
assured
by 1965, there is little
that
U.
ports; will
within
commercial
S.
rise
the
10
years.
This
tary shipments have held close to
3V2% of the combined output of
and
In .fact,- this
services.
is even on ;the: con¬
servative side because in prosper¬
prediction
ous
in 1955, the percent¬
3.7% of gross na-
years, as
age
reached
tional
product.
-.vd"
.
charges, they definitely will
lar
riffs
and
of
dol¬
increased
or
ta¬
it
Therefore,
is
relationships and developing new
markets for both the short and
haul.
The New York ex¬
porter, particularly, must be alert
to this growth and start to make
his plans immediately.
He must
be prepared not only to win new
markets, but to fight for old ones.
A survey
of the waterfront area
showed that ship¬
the
U.
growing
ernments
now
of
own
can
those
down.
products, will be
raw
Gov¬
infla¬
manufactured
and
including
goods,
the
with
faced
pressures
consumer
around
more
that
order
from
orders
for
need
in
their
S.
centered
be
materials
tionary
Another
American
reason
ex¬
porters will have to look for in¬
creased markets outside of Europe
past two
years
in
well
lose
exporters, expected to
New York harbor
as
of
19%
trade
the
to
Lawrence
Seaway
operating in full swing. This
was
difficult
is
cities
Lakes
Great
St.
the
once
has
been
believe
to
because
and again
want
time
proven
it
that United States exporters
regular and dependable delivery
schedules. They will not wait six
months
for
become
navigable because of the
of
body
a
water
winter freeze-over. In many
of the United
the
in
send
miles
States, particularly
exporters will
shipments as much as 1,000
overland in preference to
port because
nearer
a
greater frequency of sailings.
Last
the
in
reached
its
in his¬
ships moved in
highest level
tory when 25,230
and
out
New York
of
Port
of the harbor.
However,
getting its share
country's expanding ex¬
New York is not
this
of
In
port
trade.
shipped out
creased
10%.
than 5%
less
tonnage
York in¬
New
of
States
United
1955
while total
jumped
exports
On the other hand, customs
receipts in New York skyrocketed
rise for the
entire nation.
Nevertheless, this
should be your tip-off that the
New York port area cannot afford
to wait to improve maritime fa¬
cilities on a large scale. Newark,
Philadelphia,
Hampton
Roads,
Miami, New
Orleans, and the
Great
Lakes
ports expected to
33%
against
benefit
20%
a
the
from
St.
Lawrence
Seaway will allocate more money
tor improvements
years
than
since
in the next two
spent
t.,.v
the full ■ potential
of
growth of U. S. overseas trade
Realizing
the
between now and
that
of
the
well
as
commerce
of
1965,
foreign
as
nations, which is up nearly
since 1937, it seems advis¬
all
400%
able to take
will
a
quick look at what
probably be
for
markets
the
50
American
leading
exporters
during the next 10 years. Of these
50
countries,
U. S.
an
commercial sales to that
fall
to
However, the
$3.6 billion.
will
decline
year's increase of
Austria will continue to
enjoy
moderate rise in trade with
American
with
exports
with
the
of
U. S.,
about
up
Iron
the
countries will be
result
a
However, commercial
3% in 1956.
relations
than
less
to
come
one-half of last
will
area
stepped
Curtain
up as
Treaty
State
a
ne¬
Russia will re¬
place America as a supplier of
phosphates and coal, while Aus¬
gotiated last year.
liberalize
will
tria
trols
outflow
The
import
to
vestments
of
con¬
goods.
Western European
on
in¬
American
Belgium
will show
sharp gain next year. Exports
to U. S., which were up 25% in
a
1955, will continue to climb. Euro¬
competition
pean
for
become
could
Belgium
intense
but
promotion efforts in America will
markets. World
demand for steel will keep the
maintain present
in 1955
Brazil, Co¬
sales
Gold and exchange hold¬
should hold steady.
'
controls
With
dollar
now
imports, Denmark
on
will be
Tourist trade
—up
15% in 1955—will be still
greater.
Denmark should become
one
of the leading Western Euro¬
pean
markets for consumer goods
Spain amount¬
ing to nearly $300 million to date
has been slow in affecting the
However, over the long-
country.
term it will be the vital factor in
there
Already
expansion.
signs that some
bottlenecks
are
are
of the principal
disappearing. In¬
creasing tourist receipts also are
important to the economy and you
can count on gradual strengthen¬
ing in the peseta. European and
U. S.
manufacturer^ will compete
successful
ing unheard of credit terms in
continue
tax
all-out
effort
underbid
to
On
one
with
payment
S.
recent
sale, a
offered no
top German company
down
U.
an
10
years
to
auto
on
has
sales
to
climb.
getting
Electrical appliance
have
in
cultivate
will
S.
been
a
foot¬
dealers
relatively untapped mar¬
a
to
ket
not
registrations
Consumer in¬
as new car
stallment buying is
hold.
U.
pay.
The
Sweden.
restrictions
reduce
on
which Swedish hardboard in the hope
is 2V2 times as great as in 1948 that farm surpluses can be dis¬
and shows the second largest jump
posed of in Sweden at bargain
in
But Stockholm will not
output
throughout
Western prices.
Europe, is bound to slow up. buy large quantities because half
American exporters will continue of the stocks must go in Ameri¬
can ships.
to ship on letter of credit instead
Although gold and ex¬
of draft basis well into 1957, al¬
change reserves are up this year,
though some improvement in the austerity will spread.
In Switzerland, capacity opera¬
economy is likely.
A marked deterioration in Ire¬ tions are prevalent throughout the
The backlog of orders is
land's trade balance reflects last nation.
year's poor crops. Imports in 1955 greater than any time in recent
were up 400% more than exports.
years.
If the labor shortage can
Despite the new Export Board be overcome, the outlook will
continue cheerful.
established by the Irish Govern¬
Recruiting of
ment to promote foreign expan¬
foreign workers from Italy and
sion of domestic products, little West Germany is necessary, with
real improvement in the economy the probability that another 200,Greece's production rate,
be
can
until
anticipated
1957.
arrive
will
000
in
financing
1956.
ment
this year but this is one of the
long-range markets that certainly
rapidly. Swiss import, duties on
dollar goods will be raised in re¬
taliation, for the watch tariff hike
deserves
tories
for
attention.
your
low
are
consumer
and
the
Inven¬
demand
goods is enormous,
the per
as
ance
capita household appli¬
ownership in Ireland is close
wines
machines
business
of
will
continue
Exports
and ships
booming.
are
to
climb, but over¬
commercial
Italian
now
banks
can
deal freely and
multilaterally
European currencies.
in most West
Netherland's prospects for an ex¬
cellent
financial year are
bullish.
The Dutch will keep their strong
accusations
anti-t rust
and
Washington.
here of Swiss
by
However, purchases
machinery and spe¬
cialty equipment will increase as
the Administration has j ust
lowered duties
on
few items.
a
Turkey's economic crisis shows
little improvement. Exporters in
U. S. are again being warned to
be
most cautious in
selling.
estimates
Ankara
least
two
will
it
be
at
before the situa¬
Although Tur¬
years
in control.
tion is
her development
capacity resources,
Washington will be
key has pushed
way
beyond
more
aid from
forthcoming.
The
world
-
look
can
for mate¬
in the United
Kingdom's balance of payments
position in 1956. A steady dip of
$860 million in gold and dollar
holdings from the 1952 peak will
rial
improvement
Further credit restraints are
end.
inevitable as
mass
a
ists for appliances,
and
demand
ex¬
television sets
London will not devalue
cars.
officially while sterling
during the year.
Currency convertibility will have
upturn in 1955 is certain.
Gold and exchange reserves will to be postponed another year be¬
progress will continue, with tex¬
tile industry prospects especially climb further, although the trade cause of England's exchange crisis.
Extreme dollar The latest export drive will take
good. After more than three years deficit worsens.
of complete price stabliity, infla¬ liberalization
has not
been
too hold, although inflation will ham¬
tion
will
be a
major problem. healthy for the economy, so you per results. Output will rise an¬
other 3% and trade with Eastern
Steel exports, which account for can
expect some tightening of
A
less
a
spectacular rate of
in
duction
France
than
the
pro¬
prices.
in foreign
position
markets, dis-
10%
pite stiff competition. A shortage
But of labor will lead to wage increases
large share of foreign exchange,
will be reduced because of
rising
Dollar inflow exceeds the
heavy trade
deficit as
on
weakening of
any
Soviet
"the
with
ties
the dip in shipments
Europe, American ex-
offset
To
to Western
porters
3%
expect to recover the
during 1955 in
can
suffered
loss
Overall
Latin American sales.
ports
Central
to
ex¬
South
and
the
to
rebound
should
America
figure of $3.4 billion. Coffee
will be the key to a better year.
The American consumer will
1954
drink slightly more
of this bever¬
in 1956 than last year because
age
of reduced
Moreover, low
S. resulting
prices.
inventories in the U.
from
and
disturbances
political
pending exchange reforms in Bra¬
Colombia
and
zil
behind
are
a
steady rise in coffee sales in the
However, if
pushed still
months.
few
past
forward
prices
lower
values
the
are
finally
Brazil
when
de¬
overall
the
cruzeiro,
gain in coffee shipments here will
be negligible.
At the same time the Latin Re¬
bound to earn more
publics are
in
dollars
controls
on
However,
dollar goods
in
consumer
in
1956.
American-minded
the
Holland
offers
an
the pound
will
strengthen
Europe
will
while
sharp
from
a
the U.
be
up
drop
mark "
of
because
1956
sub¬
noticeably
in purchases
S. is probable.
expanding
as
consumer
needs for oil will absorb the bulk
of
any
newly-acquired exchange
from coffee and metal sales. Four
and most important
©f the largest
Republics — Argentina, Brazil,
Chile, and Venezuela — will ac¬
count for practically all the rise
in U. S. exports to Latin America.
But U.
S. manufacturers will
keep their share of the Latin
market, particu¬
not
American export
for machinery, without a
struggle. Intense competition will
continue to come from Western
larly
Germany, which is fighting to re¬
her prewar rank as the
leading exporter of ma¬
chinery. The U. S. now holds that
gain
world's
position, with Britain in second
place, but both countries are los¬
ing ground • to Germany's drive.
In Brazil, for instance,
German
machinery exports have risen in
five
years
one-half
as
from
large
one-seventh to
U. S. exports.
as
of
Establishment
Install¬
expanding
is
Your sales to Ireland will be down
growing market for both Amer¬ all profit margins will be pared as
ican and European goods.
How¬ credit becomes tighter. A new law
ever,
criticism of Washington's to encourage foreign investment
surplus farm program will en¬ will be disappointing.
Sterling
courage Denmark to lean toward
exports, along with U. £1 tri¬
sources
outside the U. S. wher¬ angular trade transactions in par¬
ever possible.
The Danish krone ticular, will benefit from Italy's
will strengthen further as exports decision finally to join the Euro¬
increase and gold and exchange pean exchange arbitrage system.
improve.
will eventually mean larger
earnings from fishing and tourism.
graw
working makers had been extend¬
a
holdings
The
modernization pro-
fleet
count
qredit controls has not helped to
stantially greater exports of me¬
a much broader market.
German
stop the rising pace of inflation.
tals. Petroleum once again will be
credit terms to Latin America will». For instance, the 10% purchase
the
second
important
question,
be
restricted somewhat.
Metal-
and
relaxed
equipment.
intensely for this rriost promising
capital goods market in the next
few years. \
!, ..
Sweden's latest series of rigid
as
remain
exports
going and overall industrial to the lowest in Western Europe.
Tourist spending in Italy will
output—up 14% since 1954—will
dip only slightly.
All these fa¬ be the greatest on record this
vorable
aspects of the Belgian year.
Farm
output
is gaining
economy mean your sales to this while exports of fruits, vegetables
nation
nation's
of
low
imports
steady.
Installment
buying!, will
make
large strides in 1956, offering con¬
sumer
goods exporters in U. S.
and
boom
altogether by I960.
1950.
was
therefore,
indications,
overall drop in ex¬
ports to Western Europe amount¬
ing to roughly 3%. On this basis
to
critical
commercial shipping
year
traffic
can
kinds
are
backlog exists
incredible
an
all
for
American aid to
suppliers.
parts
Northwest,
200 miles to
of
to
again at¬
be
1956.
Present
point
and
face
worries.
of
years
Inventories
goods.
can
In all
rise
-
postwar
many
not
economic
bloc.
import licensing, Portugal
is liberalizing controls on Ameri¬
year.
steel ings will dip slightly
of
.
*
tained
After
a
will
ex¬
strict
credit conditions will be the main
in
will
companies, $300 million.
forwarding
and
ping
as
budget deficit,
S. and Western European
porters for several years.
to those imposed by Bel¬
gium to offset French price cut¬
ting. Political instability in France
will be responsible for a wider
export programs. Sales
The shift
Europe
long
made last year
ad¬
emphasize
not foreseen.
too
not
sanctions in
more
for the
market
optimistic
more
U.
probability West Germany
a
leveling off process
during 1956. Production is up 'in
all lines.
Industrial and agricul¬
tural output wiU rise again, but
much slower. The economy is be¬
ginning to show signs of strain
as the labor shortage worsens and
high wage demands scare off capi¬
tal investment. Inflation and tight
which marked
from 1949 through 1953,
quotas,
the years
is
limitation
as
allocations,
early is the
probability of a slower rate
for you to lay the groundwork
of industrial activity there.
It is
now to get your share of this ex¬
highly questionable that the aver¬
panding trade by renewing' old
age 9% gain in production for the
'
invite
devaluation
to
a weakening franc,
higher rate for the free price
force
some
reduction
in
U.
S. of gold and extreme caution on
shipments to Western Europeans. the part of American shippers in
However, a return to such direct selling to Frenchmen during the
terest
billion
$17.5
to
next
ex¬
long-term forecast is based on the
historical average since the end of
World War I whereby non-mili¬
goods
purchase taxes and in¬
restrictions
With the White House
doubt
consumer
^dumping" duties
dition
indirect nature, such as higher
an
of
alternative
an
single
a
exchange rate of 18
pesos per U. S. dollar ($0.0555)
is welcomed here as a significant
Argentine
first
towards reorganization
Argentine economy.
step
of the chaotic
traders do
However,
the
rate
new
any
can
not
period.
extended
believe
be sustained for
A
further
official devaluation is likely after
current studies of the entire trade
and
economic situation are com¬
pleted.
Although the New Gov¬
also
ernment
ated
will
not
twice
has
rate,
alter
materially
tina's exchange
depreci¬
free"
"official
the
earnings.
it
Argen¬
Income
wool, hides and dairy prod¬
ucts will increase only slightly.
A decision to seek the help of for¬
from
eign capital in, development of
Argentine petroleum resources
will follow other reforms. Despite
rejection of the oil exploration
deal negotiated by ex-President
Peron, analysts here consider this
inevitable.
It
has
been
the long-term
many
years
since
outlook has been as
favorable for American exporters
in
Argentina
as
now.
Although
trade will be a
gradual process, it is not too early
to make your plans and to revive
old business relationships.. A $10Q
the
stepped-up
million
loan
from
the
U.
S.
is
all indications of
the current political maneuvering
disappear. Argentina is fortunate
in having as her economic ad¬
visor, Dr. Raul Prebisch, head of
the
United
Nations
Economic
Commission
for Latin America.
He
will see that austerity
and
expected
once
turning toward tight exchange allocations are
industries and carried out for at least two years.
Bolivia's tin and lead produc¬
Norway's three-year trade agriculture as heavy equipment
agreement with the Soviet Union production goals appear tempo¬ tion may rise if hopes for fewer
As labor difficulties are fulfilled. Al¬
will provide for expanding trade rarily to have been reached.
sary
counter credit restrictions, system of subsidies and import with Eastern Europe. Heavy Nor¬ austerity is eased, there is no though the currency is un'ihely
doubt
that
the
Yugoslavs will to drop in value much below the
undoubtedly will be the most im¬ taxes forestalling official devalua¬ wegian exports to Moscow will be
increased
lombia
in
and
47, with
current
only na¬ gold and exchange reserves now
tions showing a drop in purchases. rival those of the sterling area.
The French franc repiains way
Rising
inflation throughout
Western Europe, with its neces¬
over-valued, with a complicated
portant
the
in
influencing
1956.
Al¬
these controls
will be of
single factor
American
though
Japan
exports
tion.
dip
Foreign aid
and
widen
in
to France will
the import surplus will
1956.
French
subsidies
excellent
market
for
the
U.
S.
exporter over the next 10 years.
required to
to
Russians.
proving
pay
off clearing debts
tha slowly im¬
But
economy
will not offer a
Yugoslavia
consumer
is
goods
want more of the
and
will
American
open
amenities of life
up
items.
their stores to
Meanwhile, do
November,
1955
low,
Continued
new
on page
ex-
38
•38
and Financial Chronicle
The Commercial
(974)
show
lines
Continued jrom page 37
country
The
is smaller than
carry-over
Overseas Markets in 1956
change regulations and an official
devaluation are in the offing. The
the
S.
U.
lection
roughly 7%.
was
Col¬
up
to
first time
in
delays—which
are
political
but
ago
U.
S.
will
sugar
a
year
and
the
shipments
East.
the
Cuban
probably keep
mTU.
for instance,
at present levels.
long-term, however, new
of sugar to make detergents
Over the
Middle
Africa
to
East" will
Far
decline
1956
in the
pressure
quotas
sugar
Increased
the
improvement and
prospers.
the
offset
S.
exports
to
Belgian Congo,
is
guying more each
from U. S.^ejcporters in order
complete her" vast road build¬
year
to
ing, hydroelectnc power and min¬
Commodity experts
and to feed cattle will help the ing projects.
over
a
year—will increase. For
ment as
in New York aire impressed with
economy.
Gold and dollar re¬
and prices are on the way up¬ the long-term, however, Ameri¬
the rising influence of
Belgian
serves
will remain strong while
ward.
Bolivia will enter into an can businessmen have great con¬
Havana will continue to expand Congo coffee beans on world mar¬
agreement with foreign debtors fidence that this well-diversified
kets.
Increased
earnings
from
trade with Russia. A deal for de¬
and thus qualify for a loan from economy will be an expanding
coffee in addition^ to huge earn¬
livery of 200,000 tons of sugar to
market.
the U. S. However, hopes are dim
Moscow early in 1956 already has ings from ores#hake the Congo a
for increased exports to Bolivia
choice country-to sell to in the
German and U. S. investors who
been arranged.
Last year U. S.
for the next few years as the have built plants in Peru during
next 10 years. ^Orie of the richest
exports rose 5% to $435 million.
territories
in -West
country is close to bankruptcy past few years find their invest¬
Africa,
the
Cuba will remain your third larg¬
and is faced with the severest in¬ ments paying off nicely. As a re¬
Gold Coast, surely will become a
est
Latin
American
customer,
flation in all Latin America.
better trade and'investment area
sult, they have been taking heavy
Once
the
Brazilian
exchange remittances from earnings out of showing a slight increase in pur¬ for the U. S. businessman as ster¬
chases over the years as a result
ling ties aare rioOsened.
Output
reform, with the necessary de¬ the free market, thus causing the
of the normal growth pattern.
from gold; diaitiond and mangan¬
valuation, is approved by Con¬ sol to weaken. However, there is
The business situation in Mex¬ ese mines- is mounting
steadily
gress, you can count on more lib¬ little doubt that the currency will
eral
authorization
on
import strengthen before long and pay¬ ico should be better this year than while new power projects make
in 1955, which is considered one the Gold CoasUbrie of the leading
licenses by the Banco do Brazil. ments to American
exporters will
U. S.
shipments to Brazil next be accelerated. Another 5% gain of the best years in Mexican his¬ aluminum providers of the ster¬
year
will recover at least one- in U. S. sales to Peru is likely. tory. Severe hurricanes and floods ling area.
will make slow improve¬
demand for lead is high
economy
for the
months
two
uses
Thursday, February 23, 1956
...
simplified license procedure. Ap¬
are
being handled
plications
promptly, with a considerable
larger percentage being approved.
Spiralling inflation has been
stopped. Export duties have been
abolished
count
reduced.
or
Indonesians
the
You
can
greater export sales by
on
in
while
1956
Government officials are likely to
import requirements.
ease
More-'
prices for the nation's prin¬
cipal exports are up to help boost
over,
income.
Japan's outlook is good. Textile
production will increase in 1956 as
result
of
rising .con¬
imports and
exports will gain with the great¬
a
rise
est
sharply
demand.
sumer
in
Both
trade
Latin
with
,
half
the
of
30%
registered
in 1955.
That would place total
exports
to
Brazil
at
approxi¬
mately
$390
million,
compared
with $340 million this year. How¬
ever, huge coffee surpluses will
the
be
New
in
drop
country's
markets
Europe, while
Curtain
Iron
countries
The
crease.
prime worry.
be developed
trade with the
must
will
multilateral
in¬
trade
pool with the Western European
nations
will
help exports to that
The
cruzeiro
the
to
zeiro
will
the
to
the
free
weaken
Brazilian
market
Chances
certain.
is
of
to
rate
the
are
cru¬
around
80
dollar
by midyear.
More
development
1 o a ns
especially
heavy equipment for power and
,
transport, will be forthcoming
the
Chief Executive has close
new
friends in both the
Bank
as
and
Export-Import
World
Bank.
But
it
will be at least five years before
Brazil
pulls herself out of the
present
ments
plight
and
your
again.
American
exports
Chile
to
should improve gradually in 1956
as the present low status of
cop¬
unquestionably is
Peru
in
will
1955
unex¬
expenditures in 1956. On
side, the rains had
pected
the
necessitate
positive
inventories
world
throughout
the
continued
means
mand for the metal.
high de¬
Copper quo¬
tations
on
side,
will
though
even
maintain
remain
the
they
exceed
firm
will
price
top
earlier this year.
Revenues
from
should
the
not
reached
alone
copper
$20 million
if
the
country does not suffer more than
the average number of work days
lost to labor strife.
main
root
of
stantly
trouble
With
economy.
being
found
you
thus
once
a
Chile's
uses
for
con¬
copper,
top market
a
inflation
permitting
mula
lies the
in
new
Chile could become
for
Here
is
halted,
stable wage for¬
to
prevent strikes.
The
Government recently has enlisted
the
aid
of
foreign
and there is
perts
economic
reform
financial
no
doubt
be
to
ex¬
the
drawn
up
will recommend another devalua¬
tion before
of
ditions
on
far
Uruguay's
serious
more
weather
adverse
con¬
are
crops
porter,
Discreetness
A sharp reduction in ex¬
culated.
port of the major dollar earners—
American
is
expected
exchange
to
get
situation
improving.
Exporters
tinue
cautious
to
be
before
worse
will
while
con¬
surpluses
onize
in
the
and
"dumping" U.S.
in order
not
foreign
more
ex¬
to
antag¬
customers
hides and skins —
must be the watchword of Wash¬
leaves the nation helpless. Amer¬
ican aid is the only solution and ington's farm policy in 1956. Mex¬
undoubtedly
will
result
from ico, for instance, offers a rapidly
household
appliance
President
Batlles
Berres
recent expanding
meat,
wool,
S. The peso will
be devalued to keep in line with
trip
to the U.
Argentine
import
tightening of
likely.
; ^
It
is
now
"dollars
zuela.
gram
while further
currency
old
to
story
construction
only
say
in -Vene¬
plentiful"
the
But
can
are
Japan
be
diverted
to
West Germany with the
or
least effort by these two competi¬
Aided
tors.
by
rising purchasing
Mexicans will buy 40,000
refrigerators, 30,000 washing ma¬
chines and ,150,000 stoves iff 1956.
power,
an
are
curbs
market that could
pro¬
described
be
as
Tension
between Israel and the
countries
Arab
is
bound
have
to
its
repercussions on U. S. trade
colossal, with no end in sight for
with the Middle East. A 5% drop
the pouring of huge dollar earn¬
is likely in exports to this area.
ings from oil into development of
But
the economy.
to
U.
sort
some
Washington's orders
Plan" for
petroleum' importers to
S.
reduce voluntarily Middle Eastern
purchases will benefit Venezuela.
evitable
"Marshall
a
the
is
your
ex¬
long-term.
however, which will net
Iran,
$250
American and European exports
million in 1956 from oil sales, will
to Caracas will be allowed to ex¬
buy more American goods and is
pand in order to keep pace with
the one bright spot in that vola¬
the nation's industrial expansion.
tile part of the world, although
You
can
count
on
important caution still is advisable.
growth of installment sales
of
Egypt's trade with Russia and
consumer
and
agricultural hard
her satellite countries will grow.
goods for the next several years.
New
measures
to
ease
imports
In
Central
America, greatest
from
Roumania,
Hungary
and
change among the 10 Republics
Czechoslovakia are being adopted
in the next 10 years probably will
and Egypt will exchange a trade
come in Honduras.
The Govern¬
mission with Peking. These steps
ment of this undeveloped nation,
will help Cairo dispose of cotton
which has vast unexploited re¬
supplies and give her new mar¬
sources,
will soon start a con¬ kets for cotton
certed
drive
over
textiles.
Egypt
assistance
for
private foreign will also
get financial
particularly
from from U. S. to
complete the huge
U. S. Honduras will sign a double
Aswan dam, which in turn will
investment,
agreement
with
1956—the
first
ington in
Latin
American
economy
losses
country.
will regain
suffered
Wash¬
with
The
of the
some
from
a
floods
and
boost her
The
cotton
production.
government is now resorting
crop
to barter
trade, particularly with
currency
areas. • Egyptian
hard
dealers
of
for the bean will have to
drop in
order
assistance from
will
ings
tighten terms and place ceil¬
on shipments.
Heavy world
coffee
supplies will add
burden
on
an
extra
Colombia, whose prices
to
compete more advan¬
tageously with other types.
The
forthcoming.
the
U.
S.
will
be
Guatemala, too, will
present backlog of approximately
million to U. S. exporters
be
will not be liquidated in 1956. Nor
is an official devaluation of
funds from the U. S.
$150
peso
anticipated
taxes
have
since
the
high
same
import
a
better market
increase
Costa
prove
in
Rican
this
because
technical
an
will
im¬
the recent $9.3
effect.
A million
Export-Import Bank loan
single cheerful note is the expand¬ to finance completion of the Costa
ing foreign private investment in Rican portion of the Inter-Amer¬
Colombia,
despite the
growing ican Highway will stimulate ac¬
political unrest in the Republic.
tivity. Coffee crops will be smaller
Import curbs probably will be because
of
heavy
rains
while
tightened in Ecuador this year.
shipments of bananas to U. S. will
Exporters can count on a drop in earn more dollars.
Nevertheless,
sales to this Republic as the Gov¬
imports will not increase despite
ernment begins to feel the
squeeze the 20% dip in 1955.
from
^reduced exchange earnings.
In 1955 the gain in
purchases from
General conditions in Cuba will
continue
satisfactory
tries
next
as
textile
exports to
expected
are
for
10%
rise
Israel-made
Great
Britain
pected in 1956
state in
a
to
coun¬
piece
prints.
joys
dollar
shoes,
goods, '- gifts
and
Increased reciprocal trade
cotton
with
rice,
principally because of
outlets in U. S. and
year,
expanding
Canada
business
year as
of
assistance
Israel's
cotton,
as
also
is
ex¬
Israel is the only
the Middle
East that
en¬
favorable balance of trade
with England. The chief worry is
to keep a curb on inflation. Im¬
ports will fall
verted
to
ditures.
before U.
as
exchange is di¬
greater defense expen¬
It
will
be
loans
floated
in
among
the
market
which
and harbor
some
years
S. exports will show an
appreciable improvement to Israel
well
as
twill
step"
as
New
York
help
finance
construction,
general busi¬
up
activity. TS o u t h
ness
Africa's
steady dip in gold and exchange
in
reserves
1955,.
same.
South
Africa
rose
import
means
will
remain
In 1955~JLU»S.
quotas
about
growing
demand
for
farm
equipment, as ^agricultural pros¬
perity features^the current prog¬
More curbs to halt inflation
ress.
will
be
required. However, sur¬
show thatTSouth Africa will
veys
record
tremendous,jump in
a
tional
income
years
as
of
means
entirely
an
ihe
appearance
"new
consumer
durables market f6r
development
by the American-exporter.
In
the
Far
economic
dia
"jSast, rivalry for
leadership between In¬
Communist
and
China
will
Commerce
Communist
nations
the
with
will
d
only slightly. Although U. S. mili¬
tary procurements in Japan will
expa.
decrease, the favorable balance of
payments will stay in the black,
amounting to some $300 million.
Gold
and
exchange
at
reserves
$1.4 billion will continue to
cover
in circulation
currency
by 100%
and
the free rate for yen will
strengthen. Tokyo's economic
gains will aid Washington in ns
stand to oppose cotton textile im¬
port quotas.
The
aid
J
full
force
to
,
the
of
has been
program
due
political
Korean
held
back
differences.
Amount of assistance to Korea in
1956
will
double
received
this
looks
for
about
25%
to
the
substantial
a
in
million
$90
Washington
year.
private
jump
of
shipments
Korea.
Devaluation of the rupe in 1955
will
help Pakistan's jute and bur¬
lap
exports
tion
scheme
September,
sales.
than
more
anticipated. A
to
originally
export promo¬
new
operate
1957
will
through
also
boost
Better commercial relations
with India will have
impact
tremendous
a
the Pakistani economy
in general. Small but
steady gains
in your sales to Pakistan are
pos¬
on
sible in the next few years.
Prospects
power
This
ects.
na¬
during the next 10
result of a number of
and mining proj¬
a
expansive
countries.
the
exports to
20%. There is
a
in¬
East
and will boost
for
ports
of
the Middle
onions,
strikes in recent years.
Exports dates and other products are will¬
will be up while the recent loan ing to ship to the U. S. under
from the World Bank for road triangular-trade transactions and
construction equipment will stim¬ will accept Egyptian pounds or
ulate imports. Additional financial sterling in payment.
many
the
world's copper_producers, North¬
ern
Rhodesia wilRrate more at¬
railway
next to Canada
Kingdom.
United
cal¬
first
than
the
for
market
Effects
taxation
long.
Colombia's
ranking_second
,
.
per
Now
the effect of filling Mexico's dams tention from LL. S. and European
one of your top three most prom¬
for the first time, assuring good exporters
^n both the short- and
ising Latin American markets for
the next few years because of her crops. Foreign reserves will reach long-term. This market will grow
along
with
Southern
unmatched stability resulting from $400 million by April, up $195 rapidly,
Rhodesia and Nyasaland.
million from 1954 total. The great¬
the free enterprise system.
est Mexican worry is the U. S.
The
South
African
economy
Uruguay's trade deficit widens cotton
disposal program, which will benefit from.dne recent $50
and the entire economy appears
could easily spoil the third best million sterling*gpd U. S. dollar
to be headed for another crisis.
ship¬
once
become normal
for¬
eign capital will remain most at¬
tractive.
area.
Devaluation
for
climate
investment
America and the South East Asian
for
immediate
im¬
provement in the Philippines
ex¬
change position are not very en¬
couraging. Rumors to devalue the
must be discounted.
peso
Ameri¬
shipment scarcely will be in¬
can
fluenced
duties
this
by
year,
effective
the
the
of
as
new
first
of
mark the long-fhnge plans for the
1956.
U.
matically increased by agreement
in succeeding years, U.
S.-Philippine trade will be downward.
S. shipper.
England will
con¬
tinue to pressure the White House
into easing the"Lembargo on Red
Chinese
trade.
to
succes&r.this year, with
some
Indications
point
a
relaxation
of
stringent
controls over a period of time.
gradual
Australia's
trade
deficit
will
in
1956."Higher duties and
importrjcontrols recently
imposed will divert more trade to
the sterling area-r-Creation of an
narrow
tighter
guarantee
scheme
plus
other incentives^to shippers will
be introduced. Canberra will rely
heavily on credit restrictions and
deflation to limit imports further.
export
But
pines
will
remittance
ished.
will expand
items
will not
and
jaffect the 1956 out¬
Indian
look.
production
gains
1945 are the greatest in
since
the
The second
which
plan,
five-year
to
1961,. will
place 30% in industrial investment
and put less emphasis on agricul¬
ture.
Recent
runs
tradevfairs will boost
exports to all
areas
but
commer¬
cial relations with Eastern Earope
show
will
U.
S.
the 'largest
foreign
while
aid
increase.
will
development
not
loa^s
dip
from
Washington will be granted.
A
new
slightly
nitely
appears
trade
outlook.
a
tremendous
political
there is
nation
a
in? the Indor.es'an
After
undergoing
number
of
major
and economic changes,
good possibility that the
will
find
itself
and
begin
unless the Middle Eastern crisis is
the
settled, which is unlikely.
porters are satisfied with the
long-delayed
recovery.
Im¬
new
been
abol¬
heavy
of
goods
luxury
be
and
mad?
staple
rigid.
more
greater
as
exports
and
copra
be expected and
markets in the Far East will
sugar
new
can
sought.
A
more
realistic
Government
1956.
allocation
of
exchange by the Thailand
expected
in
from
slight
a
be
can
Reports
dicate
Bangkok in¬
increase in pur¬
chases
from
U.
S.
is
planned.
However, essential items will be
given absolute priority.
America's best market—Canada
—
will contract
slightly
Canadian currency
now that
has sl'-pped to
about
par with the U. S. dollar.
Although this will make it more
difficult to sell to
other
spurt
American
Canada
in
1956
slight
spread
of
investment
to
bring addi¬
again force
once
premium
on
later in the
Canadian
year.
and
recovery
gains of
Wide¬
industrial
will continue
1955
into 1956, with
an¬
outflow
will
tional dollars and
a
Canadians,
the
private
in
currency
trend for the better defi¬
has
Manila's trade deficit will improve
world and the present rate will be
maintained.
the
main
in 1956 while import
on
will
dollar
foreig|i capital ventures in
tax
Purchase
controls
this year.
India, especially in the steel in¬
dustry, are of long-term nature
of
Philip¬
the
of
one
targets of American private capi¬
now that the 17%
be
New
be
auto¬
are
tal in the world
Therefore, you must be prepared
a dip in exports to
Australia
v
rates
Stability is the keynote
Magsaysay regime.
The
for
|
the
as
well
increase in out¬
an
put of 8% foreseen for the entire
year.
the
However,
deficit
the
with
the
widening
S.
and
effect of America's farm
sur¬
trade
U.
plus disposal program make Otta¬
wa
most uneasy.
As long
as
Can-
Volume 183
Number 5510
The Commercial and Financial Chronicle
...
(975)
and
others
ada
raw
complains about the
crop' be
materials, - producers
dumping policy4 of Washington, goods, farm machinery, oil pro¬
certainly you cannot expect any ducing equipment and pipeline.
nessmen
rise in your exports. It must not
be overlooked that the Canadians
which limit the rate of growth of
all industries. It must be realized
also have
of
billion-bushel surplus
a
wheat,
been
sales
stymied
wnich
of
due
U.
to
have
S.
gifts
abroad.
A
study of the needs of the 50
markets
analyzed above reveals
that in contrast to last year, when
most
of
the 10%
U. S. export
increase
in
was
vehicles,
ery,
metals,
coal,
machin¬
steel
and
Overseas sales of
and
goods
consumer
autos will be sub¬
stantially lower. Of the 50 coun¬
passenger
tries, 33 will be better customers
in 1956 than last year, compared
with the 47 which expanded pur¬
chases
from
However,
able to
in
the
U.
countries
dollars to spend
America because
keep
1955.
foreign
with
earn more
erated
in
S.
import
accel¬
of the
here
demand
to
with the growing econ¬
pace
the New York exporter can
look forward to just as good prof¬
its this year as in 1955.
omy,
.chemicals,
the
items
which
will
show the largest gains in 1956 will
nize
that
result
may ;
high.
the
since
area
only depressed
in agriculture.
was
Those who
are
attempting to
analyze business activity, there¬
fore, are no longer confronted
with
the
higher
has
the
They
.two
now
questions.
remain
of
how
economy
about
gone
:go."
,
question
at
"It
go.
can
far
as
much
it
as
can
have to answer
Can the economy
this
level
and,
if
it
there
has
been
objective
tenths
of
is
measured
in
point, however. The
wholesale price index has been
relatively stable over the last year
but that is because a sharp de¬
cline in
agricultural prices has
offset
an
increase
in prices
of
industrial
commodities.
in
ob-
The
in¬
for
*
the
workers
for
tically,
entering
the
first
the
time.
it is- difficult to
accurate
of
measure
labor
Statis¬
give
the
an
rate
of
growth
needed
to
accomplish
these various objectives, but it is
1 probable that
>4%
per
at
this
therefore,
Gross
National
present prices would
requirement. It could,
be expected that the
Gross National Product would in-
to
; crease
the
j
;
about
end
of
at
This
that
you
Gross
Product increased at
^
billion
$415
1956.
might
measure maximum capacity at the
end of next year. I need only to
/remind
,
National
rate almost
a
twice that rate from the third
quarter, 1954 to the third quarter,
1955. Thus, the rate of increase
will slow down
,
<
perceptibly in the
ahead. It is equally accurate
year
to sav
that
signs Of
slowdown
a
in the rate cf increase
are
already
; apparent.
can
If this rate of growth
maintained, it will be a
be
significant
.
.
achievement.
Great
effort to achieve it will be made
by the government by employing
as
far
is possible the techniques
as
of monetary and fiscal
governmental
tempt
achieve
to
policy. The
authorities
this
will
at¬
goal
by
stimulating construction, expand¬
ing public works, and changing
the
rates
of
that
mean
taxation.
these
I
do
sors.
not
policies will
pursued for narrow, partisan
"■
be
rea-
Whether the policies will be
effective
not, the people of the
or
[ United States, regardless of party,
in
-concur
about
come
because
the
demand
the
take
increase
of inflation need to
with caution
tion
cf
ment"
power
about
whether
of
the
"full
dis¬
ques¬
employ¬
and
resources
man-,
could be achieved. Now the
discussion
stresses
is
and
ployment."
lems
economic
ago
revolved
of
economy
primarilv about the
strains
What
of
are
"full
the
em¬
prob¬
"full
employment"
and how should we deal
a
with them?
*
'
'
in
has
in
the
past several months of the "tight"
money policy. It has had severe
critics
but
too
often
these
critics
have objected because monetary
policy has interferred with their
business plans. Too often the
has been voiced by spe¬
own
criticism
cial groups. The monetary author¬
ities cannot by the very nature
of
monetary controls deal with
specific problems. They must ex¬
amine
the
broad
picture
and
the supply of credit ac¬
cordingly. If credit is expanding
too rabidly relative to the level of
regulate
it
output,
that prices
means
increase.
Thus,
the
of
one
of
the
will
in
period
a
of
permanent
infla¬
tion, that inflation has become a
way of life.
The acceptance of
this idea is dangerous for
many
In
the
first
place, a
monetary and fiscal policy
reasons.
would
not
permit
inflation
unchecked.
In
the
to
sec¬
place, it might lead to busi¬
decisions taken, not on the
basis of business judgments, but
the
on
will
expectation
make
tarily
inflation
decision
any;
sound
a
that
mone¬
Finally,
one.
I
think it is
important to point out
nothing, including inflation,
is permanent.
that
A second problem of "full em¬
ployment" is the. problem of try¬
ing to maintain it." In an earlier
paragraph
I
indicated
that, in
order to
sion,
be
provide for
necessary,
some
expan¬
investment
capital
would
at
even
"full employment."
lem
level
a
of
But the prob¬
of
financing this expansion
be difficult. Likewise, there
difficulties in securing ma¬
may
are
terial for expansion. At the pres¬
ent time, for example, the demand
for
steel
from
companies
is
expand
that | it
steel
secure
factory
a
machines.
new
automobile
great
difficult to
would be
to
the
so
There
add
to
or
is
also
a
say
the
monetary
authorities
performed
their
function
have
with
than average skill. The
Reserve Board,
as
well
more
Federal
the other agencies of the
as
gov¬
ernment
influencing economic
trends, has maintained about the
right volume of credit. There may
be
room
nical
properly
It
to criticize
maneuvers
within
market
was
the
of
monetary
were-
because
the
of
policy
objecting
harm
word—that
—
it
if
to
I
was
it
may
doing
specific industry.
This,
think, illustrates clearly a prob¬
lem
a
of
their
to
I
fall
province
techniques.
frequently
that
tech¬
these
pointed out earlier that
critics
use
certain
but
which
high
confronts
level
all
of
us
at
of
employment.
It
is, of course, true that a monetary
policy could
be
followed
that
would permit everyone to
to
carry
out
his
attempt
objectives but
understanding and, there¬
fore, acceptance of the policies
and objectives of
the monetary
cure an
and
level
fiscal
of
authorities.
At
business. activity,
this
busi¬
auto¬
to
tremely unwise. No matter how
pleasant a tax reduction would be
next
year,
it would be unwise
from
economic
point of view
things stand now.
This is a
weapon which should be held in
an
the
wonder,
of
question whether
sales
car
in 1956.
therefore,
They
such
be
can
rate
a
maintained
*
not forecasting
are
1954
level, but they are forecasting a decline in sales to 6.5 mil¬
lion
to
million
seven
for
reasons
units.
expecting
buy
that
this
year's
it
is
models
year's to develop the psychologi¬
for
drive
"new"
a
In
car.
dire
these
in
the
1955
was
automobiles
months
of
familiar
cover
they
applicable
any other
period of "full employment." It
is necessary to examine the spe¬
cific factors in the economy which
have led
to the current period
of "full employment" and to con¬
well
sider whether
to
expected
level.
some
has
it
whether
is
The
about
come
as
the
a
While
is
it
not
volume
cent
in
recovery
result
of
be
well
one
to
consider
Domestic
reached
most
in
turn
each
of these.
spite of
an
7.5
Output
all-time
million
just
of
fell
automobiles
high
units
short
automobile
of
in
of
of
al¬
1955.
eight
whether
or
great demand for
a
sales.
from
farms
they
been
in
into
provide
for
homes
of
with the
throughways.
new
have
demand
and
demolition
some
connection
trends
the
addi¬
justified
the
for
housing, and
probable that they will con¬
for
time.
some
But
a
new
and
higher level of housing starts
cannot in all probability be main¬
tained for long.
It is, therefore,
doubtful whether the government
apply to housing the same
of stimulus that it applied
can
type
in
1954.
Surveys indicate that plant and
equipment expenditures by busi¬
ness
enterprises will expand in
year by an amount ap¬
proximately equal to $3 billion.
the
next
More
of
information
accurate
will,
be available when the
course,
SEC-Commerce survey is released
in March. Anyone who reads the
that
knows
newspapers
business
is
planning to expand further, and
hardly a day goes by that some
company does not announce
to
millions
spend
modernize
build
new
of
facilities
old
plans
dollars
or
to
to
ones.
Another
reason why the
econ¬
is operating at such a high
omy
level
is
businessmen
that
have
been
best efforts and
your
bile business.
The
...
question
will
is,
automo¬
maintained
bile
sales
near
be
at
the newspapers, even the govern¬
is
having trouble getting
ment
the current level and I think
or
copper to make pennies, and is
reported to have borrowed it from
With¬ the stock-pile of strategic war
out
presenting
the
statistical commodities. It is probable that
argument for
this point, it is inventory accumulation will cease
probably valid to forecast that
|to be an important factor in the
automobile sales will decline to
economy in the next year, and the
a
level
of 6.5
million units to decline will
probably be about
6.75 million units.
A decline of equal to the expansion in plant
this amount would mean a con¬ and.
equipment expenditures.
traction of about $3 billion ac¬
In the speech which I gave you
cording to Gross National Prod¬ in.
1953, I said that the decline
the
is definitely no.
answer
will
It
data.
uct
be
necessary,
business
in
would
until
continue
therefore, in order to maintain a
it was offset by increases in mili¬
high level of employment, to find
tary and other governmental ex¬
an
offset for that $3 billion de-,
penditures either directly or in¬
cline in Gross National Product.
directly. I was half right in that
Housing
in
1955
received
a
the government stimulated hous¬
great stimulus as the result of ing expenditures, but my forecast
the Housing Act of 1954.
Early of an increase in military ex¬
in 1955 housing starts reached an
penditures proved to be incorrect.
annual rate of 1.5 million but this
has
rate
duced
subsequently
limited.
been re¬
has
been
credit
because
in the field be¬
a further
Experts
lieve that there will be
Total housing
next year.
to
expected
be down
the houses
Because
being built are larger and
equipped, it is believed
now
better
that the dollar volume will be off
Other
5%.
about
types
of
con¬
expected to advance
that the net effect of construc¬
struction
so
are
tion
estimates tend to concur.
is
There
its power to
of
belief that
popular
a
Administration will do all in
the
maintain
a
tion
year
modify
stimulate
residential
the
it
and
housing
high level
in
industrial activity
an
elec¬
will, therefore,
credit terms to
boom
construction. Most
a
renewed
to
measures
credits
sales
come,
rebuilding inventories. This
accumulation
has
in part
been
those of your advertising firms,
forced by the need for more goods
cars
are
not
moving into the to
support the higher level of
hands of consumers in as great
industry, but it has also been
a volume as is
necessary to pre¬
necessary to accumulate stocks of
vent a slowdpwn in the automo¬
scarce commodities.
According to
In
decreases
increasing capital in¬
by business.
It might
vestments
those
who are interested in sell¬
ing and who have stated that new
sales techniques can be used to
sell our way out of any depres¬
sion might well reconsider that
argument on the basis of the re¬
figures,
the increases may
be
about $2 billion, and F. W. Dodge
rapid expansion in the sale of
automobiles, a high level of hous¬
ing starts, inventory accumula¬
and
conclusive,
of you
be
a
tion,
to
This is true in spite
tremendous sales campaign.
this high
important
increases
current
two
up
expenditures in 1956 will be
a
slight increase.
According to
the
Department
of
Commerce
not they can
sectors will offset
others.
in
or
to
maintain
Likewise,
decide
to
are
as
last
not
expectations.
10%.
points
have
borne out by actual expe¬
rience, and the dealers will tell
you that consumer acceptances of
are
and
forecasts
These
tinue
-
not different enough from, last
cal
has
homes
it is
The
Finally,
ones.
new
argued
starts
as
it
does
demand
current
decline
a
Many
numerous.
about
this
is
not
a
them
Family formation has
by the movement
building
•
automobile
dealers will tell you that in 1955
they borrowed sales from 1956.
It
is also believed that buyers
will pay off instalment debts on
cars
they now own rather than
are
reserve.
These
of
it
where
there
of
that the rate will fall back to the
decline
to
of
relaxation
If
wonder
tional
of
by
sector
families
to
of
made
curbs
housing.
state¬
other
will stimulate,
cities
as
ground
to
course,
more
any
economy.
fair
that
housing credit have
been
about
housing
been
question of maintaining the
guides to the soundness of credit
amount of purchasing power suf¬
policy is the trend of prices. It is
ficient to maintain "full employ¬
a
mistake, of course, to reduce
ment." It is true that disposable
monetary policy to such a simple
income could
be
in¬
formula, but a sound monetary personal
creased through tax relief, but a
policy would prevent a rapid rise
budgetary
deficit under condi¬
or fall in prices. In
general, there¬
tions of "full employment" is ex¬
fore, it would be correct to
that
the
of the most
one
contributors
small
is
ion
which
is widely
expressed.
Many people believe that we are
best
most
achieved, any further increase in
purchasing power is likely to re¬
sult
in
an
increase
in
prices
rather than an expansion in out¬
put. Over the last six months
dangers
reinforced
ness
prices,
determining
clearly than
made
about
It
part,
will
industrial
been
be
was
in
than
con¬
generally
increase
about
apparently
con¬
that many analysts are beginning
are
ond
important is that would lead to disastrous in¬
One of the problems of
the problem
of inflation. When flation.
capacity
operation
has 4 been "full employment" then is to se¬
One
un¬
because
us,
financed
was
It must, of
|
out
pointed
been reinforced
another opin¬
that
..
Much
the
years
There
great.
while not the only
factor, explains more
anything else the reason for the
"tight" money policy being fol¬
lowed
by the Federal Reserve
System.
growth.
Ten
been
place in the current month.
The
money
cussion
has
moreover, J indications
further
increases in prices
desirability
of
utilizing them to achieve the goal
of
a
high and stable rate of
r
have
are,
increase of about
in
year
Product
meet
an
em¬
danger
The cautions about the
continue
force
.
the prices of industrial
greatest
confronts
now
modities
making is that the slack has
been taken up and further
growth
is
dependent
upon
increased
.productivity, increased capital in¬
vestment, and the employment of
*
creases
which
I
am
powers
"full
A failure to
the
is
proper
because
grow
economy
achieve
to
jectives sought.
steel,
non-ferrous
metals,
lumber, and other industrial com¬
to
an
monetary and fiscal
used
viously that is not true. The point
economy
...
in
achieve certain goals, and the ob¬
a
primarily
for
that
it could lead to inflation.
increase
the
possible
is
impervi¬
point I am
The
?that
not
that it is
The
It is
the
be
ments
The
1950.
put.
what is best for the
and
officials, it is incorrect to
say that they have as such limited
housing credit.
spectacular gain in industrial out¬
The Federal Reserve System
certainly does not feel that it
criticism.
credit.
that
important
ity.
to
in
sales
car
mobile sales
others to accept uncritically every
decision of the monetary author¬
alone knows
serve
over
spectacular increase in
a
ceded
to
ployment,"
businessmen,
labor
leaders, and farmers must under¬
stand these policies, the manner
in
which
they are utilized to
for
high reached
sumer
economy
is
derstand
commodities
is
time
equally
prices to increase. The cost of
living is slowly but steadily rising.
.declines, how far will it fall? I
; do not wish to give the impression
it
falls
the
40%
1954, and
it is 20% above the previous all-
permit
expansion without inflation.
The
opinion expressed in the
preceding paragraph is not meant
to be a plea for businessmen and
are
tendency
a
of
than
prevailing in
by
control
sectors
making
The
rate
This represents an
more
increase in
and
all
where
time
the
decisions
of
ulation
ous
How Long Can We
Stand Prosperity
policy
units.
increase
by them that the burden of reg¬
on
economy
Continued from first page
in
million
must recog¬
considerations
over-all
39
have
been
in
of
curb
housing
taken by the
FHA, the VA, and the Home Loan
Banks.
While statements critical
of
mortgage
been
warehousing
attributed
to
Federal
have
Re¬
I
reiterate
will
now
of
in
increase
an
the
forecast
military
ex¬
penditures, not because I feel that
if
reiterate
I
enough
it
tion
almost
often
forecast
prove
compels
but
true,
international
the
because
a
will
an
situa¬
increase
military expenditures. In spite
of the desire of the government
to
balance the budget, military
in
expenditures for guided missiles,
new types of aircraft, and atomic
weapons are almost certain to in¬
The
crease.
cold
war
Geneva
thaw
in the
has ended.
Moreover, we are probably em¬
barking
upon
a
long-range pro¬
of economic aid to foreign
countries in competition with the
Soviet Union.
Apparently, both
the Eastern nations and the West¬
gram
ern
powers
are
going to
appro¬
priate some portion of their phys¬
ical
outputs to aid in the de¬
velopment. of backward countries.
This
it
is
a
long-term program
and
unquestionably will lead to an
in
governmental
ex¬
increase
It will take time for
program
to
be
to secure Congres¬
approval, and to be under-
penditures.
the
American
formulated,
sional
Continued
on page
41
40
The Commercial and Financial Chronicle
(976)
confidence
Whelpley
B.
G.
Medley
and
recognized by
increasingly
American investors as
develops;
4
r
will continue j to improver
gradually (lower taxes, sounder monetary policies, more favorable;
attitudes toward American investors);
;
;
f
outlook
political
The
(3)
elected
of Knickerbocker
Vincent Cullen have been
directors
become
will
Directors Elected
*■
Thursday, February 23, 1956
.
abroad
.
Inc., distributors of
Fund and Capital
Shares,
a
is
Surefty Co.
trustee of American
New
of
and
New International Fund Started
and a director of
and U. S. Rub¬
York,
ber
of
Co.
Mr.
of The
Corp. is a
President
Cullen,
Treaty
Management
trustee
of
Bank and
Savings
director of the Insur¬
East Brooklyn
a
on
The fund,
,
-
he pointed out, will also give investors
S. subsidiaries.
owned U.
oppor¬
an
;q
'
'
'
-•■■■■'
'
■
advisor.
investment
'
dependent
increasingly
tunity to invest in selected foreign companies which have wholly■
its
of expanding world trade; and
an era
.
of the remaining trade restrictions
many
United States will become
certain foreign raw materials.
is
Incorporated
convertibility of major currencies
toward
progress
(5) The
in operation on a national scale ac¬
cording to an announcement by John C. van Eck, Jr., President
of the new mutual fund, and head of Van Eck Management Corp.,
vestors
gradual integration of the Free World's
a
by the removal of
thereby leading to
Proposing to take advantage of more rapid economic growth
the free world outside the United States, International In¬
Kennecott Copper
by
economy
Whelpley
Mr.
Fund.
Venture
(4) There will be
By ROBERT R. RICH
Knickerbocker
~
■
■
.
,
1
■■
■
i-
-
■
,
'
D. Pettit,
William
Knickerbocker
Inc. has
the
post of
to
Vice-President
and
postwar rate of economic growth,
greater security values than in the United States, and with an
improving world political climate, I believe that many foreign
securities offer attractive opportunities for growth. In my opinion,
we
are entering a new phase of successful private foreign port¬
:
of Karl D. Pettit & Co.
I
Stocks for Income
j
!
through
I
"International Investors is
National Stock Series
note
|
{
I
|
common
a diversified group
stocks selected be-
of their
relatively high cur¬
rent
yield and reasonable expectance of its continuance with
regard to the risk involved. Pros¬
pectus, and other information
may be obtained from your incause
I
|
J
I
vestment dealer or:
-
Corporation
Research
income tax
reason for the formation of
rapid rate of economic ex¬
pansion abroad than in the United States, citing an 11% average
annual increase in petroleum consumption, compared with 5%
in the United States, between 1948 and 1955; a gain in number
of motor vehicles in use during the same period of 11% annually,
compared with 6% in the United States; and an overall industrial
foreign annual rate of growth of 7.8% in the same seven years,
compared with a U. S. increase of approximately 4%.
He
emphasized
favorable
"Also
free
outside
world
the
part of
as
Investors,
to
the
the
more
growth
U.
prospects
companies
of
in
the
S., are the higher profit margins that
frequently prevail abroad,". Mr. van Eck pointed out, citing the
Established 1930
120 Broadway, Now
as
International
Securities &
National
;
withholding taxes to be passed on to U. S.
credits," Mr. van Eck pointed out..,:
permitting foreign
investment in
York 5, Now York
substantially higher ratio of 1954 net income to sales from foreign
operations of such companies as American Radiator, whose do¬
mestic
against 10.8% for their
foreign subsidiaries; Colgate-Palmolive, 3.1% compared with 6%;
and Olin Mathieson Chemical, 7.2%
compared with 13.7% on
earnings
on
sales
were
5.4%,
foreign operations.
<J/ie
.
3corye,
"It is
can
this
PUTNAM
our
investors
growth
van Eck said, "that many other Ameri¬
the opportunity to participate in
situation, butr either feel unqualified to
properly, or lack the means to achieve satis¬
belief," Mr.
would
and
welcome
profit
select investments
of djoiton
Mr.
50 State
Street, Boston
Eck
van
cited
factors
five
which, he
said, underlie its
management's belief that selected foreign securities offer signifi¬
cantly attractive opportunities for long term income and capital
appreciation:
^
(1) The
Putnam Fund Distributors, Inc.
$14.1,
well
under
last
year's $16.5. Restrictions on mort¬
gage credit rather than a filling
of housing demands have beeen
principal restrictive factor, "Per¬
spective," the monthly publication
spective" states.
to
be
-
long-termeconomic
.
growth
abroad
'/
rapid, especially in certain areas;
continue
will
I' '
'
-'v-V «f"'
values now often obtainable
abroad in terms of lower price-earnings ratios and higher yields
(2) The
investment
greater
American
of
Department of Calvin Bullock.
Product is
Gross National
which
noted
National
that
and
tive's"
1955.
the
expected
falling
as
from
the
last
of
total
to $33.8 billion
$35.3 billion of
v
year.
To offset
*
Other
this, purchasers of non-
1955.
forecast
Government
PROSPECTUS
Development Securities Co., Inc.
]\Aassachusetts
Investors Trust
STREET, N, W., WASHINGTON 7, D. C.
t
highlights
spending,
encom¬
with 1955's $75.9 billion.
,-v There will be a "fairly substan¬
tial"
rise
this
in private
investments in plants, inventories
and general construction.
How¬
there
of
year
maybe
"froth"
certain
a
in
and
stocks
mon
89%'.of
for
account
assets, the fund reports.
r,.
if
/■
'Philadelphia
"
.
Fund
*
*
*
OF
value
from
—a
per-share rose, to $18.31
$15.82 at the 1954 year-end
20.4% increase after adding
back
distributions
gain
capital
paid during 1955 of 730 per share.
stocks and cash—about
proportions
as
the
of
year
a
the
same
The
ago.
the
the
stocks
owned was offset by additions to
holdings of bonds and cash.
effect
of
prices
The
in
of
many
"President's
as
rise
sharp
follows:
Letter"
com¬
recent
"The
large proportions in equities have
reflected the Investment Commit¬
tee's
tially whenever, in the Commit¬
tee's judgment, conditions appear
of savings will be more
adequate
compared
to
credit requirements. First half of
high¬
inventories and receivables and
supply cash for the seasonally
heavy tax payments.
The decline in housing starts
the
existing and
gressive position. Defensive hold¬
will be increased substan¬
ings
to
call
for
greater .caution."
Wisconsin Fund
supply
nearly
belief that
anticipated general economic sit¬
uation warranted a strongly ag¬
New assets
Dec. 31,
on
1955, of
Wisconsin
Fund, Inc., a mutual
fund, reached an all-time high of
$10,644,941 • or $5.84 a share as
compared with $7,930,260 or $5.19
indicated in the
During the
year, four quarterly dividend pay¬
ments were paid from investment
a
earlier,
year
fund's annual
throughout last year points to re¬
duced
spending
on
residential
income
1954.
this
year,
approxi-
share
which
as
report.
totaled
compared with
19
cents
BOSTON
relating to the shares of any of these separate
be obtained from authorized dealers
EATON & HOWARD
BALANCED FUND
STOCK FUND
or
Managed by
50 Contfreaa Street, Boston 9, Maaa.
VANCE, SANDERS & COMPANY
Organization and the shares of your
111
DEVONSHIRE
EATON
STREET
■
&4 HOWARD
INCORPORATED
D 150
BOSTON
24 Federal Street
Name...
NEW
6i
CHICAGO
YORK
Broadway
izo
South LaSalle Street
LOS
Zio
ANGELES
ESTABLISHED 1924
Ross
BOSTON
BOSTON
Building
SAN FRANCISCO
West Seventh Street
Prospectuses from
your
Investment Dealef
or
the above.
\
a
18 cents in
EATON & HOWARD
investment funds may
>
asset
net
Bond Fund
A prospectus
net profit from
$2,007,214. Com¬
a
sales of securities
construction
BOND, PREFERRED AND
State.
1, 1955.
Net income for the quarter was
$3,726,019
ments
a
er
COMMON STOCK FUNDS
Address.
of
shareholders
to
record November
adverse
an
me
prospectuses describing
distribution
industry's
short-term funds to finance
:ystone
me
Oct.
on
•
1956, however, will probably see
continued
strong demand for
Canada General Fund
Custodian Fund;
share
a
31, 1955. after adjustment for pay¬
ment
of a 31-cent capital-' gain
The fund's investment position
passing national security, Federal
non-defense
purposes,
and state at the year-end: About 85%' of
and local services and facilities, total net assets in common stocks
15%
in
bonds,
preferred
will
hit $79.7 billion
compared, and
a
(1954) LIMITED
....
in¬
to
The Keystone Company
31, 1956, equivalent to $5.86
share on 59,016,350 shares
outstanding on that date and com¬
per
sorbing
increased
labor
costs,
equal to or slightly in excess of
savings from greater labor pro¬
ductivity.
Indications
show
this
year's
Century Shares Trust
Cty
:
expenditures for
services are
all seen as rising.
Savings are also expected to rise,
up to $21.1 billion from the $17.1
billion in
Jan.
$6 billion annual rate for the
1956.
prices will stabilize
at about current levels, with busi¬
ness
later this year possibly ab¬
Growth Stock Fund
GET THE FACTS AND FREE
Funds.
:
,
first and second quarters of
FUND, INC.
ten
•<
and
durables,
at
Massachusetts Investors
MUTUAL
your
in
Consumer
DEVELOPMENT
Please send
econ¬
decline
Inventory accumulation will be
tfjdoden 3unci
ATOMIC
1033 THIRTIETH
1956
consumers' purchases of durables,
seen
Fund, New York's
investment company, re¬
paring with $5.68
•
in "Prospec-
soft spot
picture of the
is
omy
Affiliated
largest
ports net assets of $345,692,494 on
Corporate
profits, the article
reported,
may
not
materially
differ
from
the
$21.5 , billion
breeze could blow away.
through
Atomic
govern¬
.
The sole
$345 Million
consumption,
personal
'
;
included
total
private investment,
ment spending.
reached in
Assets Now At
Gross
1956
the
Product
in
rises
expansion plans which
ATOMIC SCIENCE
Affiliated Fund
seen
rising to $403.2 billion for the
year as compared to $387.2 billion
for 1955, according to the forecast
as
amount
ui
mately
Management
Investment
the
ever,
invest
this
economy
cluded:
factory diversification."
FUND
will be at least as good as
last year, and may possibly .pdge
ahead of 1955's all-time highs in
some
areas,
according to "Per¬
The
year
of participating
shareholders
a mutual fund, the primary objective of which is to provide an
^
a
way
I
\ * ■'
S
designed to offer American inves¬
practical,' informed, carefully-supervised, and diversified
in this growth abroad. It is important to
that International Investors qualifies under Federal tax law
tors
of
I
greater" overall
a
folio investment," Mr. van Eck stated.
Investing in Common
j
outside
"With
'
Economy To Hold Gains
Made In 1955, Bullock Reports
;?v*
States.
lies
j
I
the United
is
of
'■
American
chip'
in that half of the free world's economy that
foreign investments
'
_
plans "to specialize in selected 'blue
disclosed
Eck
van
He
Capital Venture Fund, and a part¬
ner
Mr.
director
Vice-President.
Executive
a
director of
Shares,
advanced
been
a
announcing activation of the new company, one of the few
funds with investments primarily in leading worldwide securities,
In
Society of New York Inc.
ance
•
(977f
LiviiigTrust
"
eficiaries,
***<y-j
capital
Investor Service
■
•'.la-ted
from
39
page
*■% }}..
V
•
adequate amount of
an
have been accumusupport them for an in-
will
to
tContinued
„
Fidelity Fund
In ,1955 the number of
«
Fidelity i-7;'
riueuiy
Fund shareholders, net assetsoutshares
standing and total
all
^definite period of time.
Mr
Staad
y,S. I4. Sholley, President, of ^ «<gut when the amount of cap- reached*new highs'fcontiniTim? the
Keystone Custodian,Funds,, Inc., ital available to widows and de"
has announced the establishment
is limited
they are
taken, but it will provide an impetus
of;a new service—the Keystone without other immediate sources
nisioryju me runa.
petus to Federal expenditures.
to Federal expenditures.
Level Payment Living Trust-de- of
Governmental
expenditures at
i^me/they'wMin
als,°
the state and local level, as well
signed to help Keystone share-, jje forced j0 draw upon it to meet
Y
Y
highest dividends
ho ders to bridge the gap of protheir minimum living needs. Even
from net income in the as highway, schools * and other
bate procedures and to provide under
public works expenditures, will
these
the
JJInd
continuing the
thThistorTof thl (aadracterlzed
and*
p|ndents
any7vent
circu®stances,
level
from
payments
1
4^
invest-. Keystone Level
J
an
*
ment estate to beneficiaries.
The
trust is
settlor
acts
Trust
revocable, and the
his
as
.Trustee
own
capital
his
"The
tate taxes" Mr.
it
does
income
pro-
which to live when the
on
686,953 at the end of 1954.
the
-
been exhausted."
in the net
value of Fidelity Fund.
high
new
a
Net asset value per
Dec.
balance of the in¬
1955,
31,
a
time not too far in the future
when capital expenditures will be
curtailed for a temporary period
of readjustment.
:
;
$101
in
it
in
increase
of this
expenditures
type.
^
-
.other
or
benefigjar-; President of the
the nation's
Kulp, Vice
$490,000,000 Wei-
company
and bank stocks
^
specializing in insurance
romDanv
lost due
lower
and
prices.We * stress
the success
achieved withi cyclically balanced
and monetary and fiscal
budgets
There have been other ■
the past when people
have
believed
that
by/various
techniques "good" times had been
^«n<Ht has hppn
.
•
of his widow
unemployment
to
Business
o^quarterly •-•payments- .hiefeels ,;;long-terai outlook for
will be necessary for the support economy, A.
Moyer
to offset income
bilizers
.
.
believed
popularly
now
could never have another
we
depression similar to 1929-1933.
We depend upon "built-in" sta¬
thus saving admin¬
The only area which has not
istrative costs and avoiding? the
from
long-term
capital
gains been examined in detail has been
delay and publicity - of probate
realized in 1954 was distributed the area
of consumer
spending
s
procedure."
V
/ >./ '//'. /
with the exception of the state¬
Rising
population,
increased on Feb
1955,^;..
In
establishing a Level Payments
I-have
made
about the
ment Living Trust, the settlor pre-:, productivity and expansion of real
century Shares -Trust,, ■ oldest market tnr automobiles. The perfor
determines the amount;of monthly .income all point to a promising and
largest
mutual • investment
l
t
1
.
is
that
continue to be a sir„all but steady
share as of
Ex-
quarter.
each
estimates
actly the reverse might happen
this year, certainly, there is a
are formulated in
billion and school
billions of dollars,
Actually, there has been and will
of
programs
men to
capital' expendi¬
business
caused
upward
buy
revise
ture
programs
terms
$14.80, com¬
was
to
amount
way
pared with $12.99 on Dec. 31,1954.
A distribution of $0.31 V4 per share
Now Point To
vestor's estate,
tendency to exaggerate
of
money
that is
likely to be spent for programs
of this nature. As a result, highthe
asset
Three Factors
in
capital
We have
This
is
the last several years,
over
-
anticipated that plant and equip¬
ment expenditures would decline.
But the willingness of consumers
rate
same
Prosperity
ment intentions can change. was
At
the beginning of last year it
the beginning of last year it was
of increase that has characterized
W*th $0.48^ in 1954 and $0.45 two them
ye
-a^°"
As of Dec. 31, 1955, Fidelity
Fund reported net asset value of
standard of liv- $217,596,660, an increase of 33%
other sources of over the net asset value of $163,-
estate has finaly
Sholley said, "but
segregate
trust from the
to
not reduce es¬
does
trust
settlor
undoubtedly show the
possibly to extend
changes in their
and to find
ficiaries upon death.
>
the
orderly liquidation of
ing
designated payments to his bene-
Living
b
Payment
f,unds 26-year history. The dividetnda Yr°™ per share compared
investment income
totaled $0.53
period of time during which
beneficiaries must adjust to
the
the
support
to
an
the estate—and
during his lifetime and uses the
Keystone Open Account Plan for
periodic investing as a means of
building
enables
vide for
41
sliehtlv
powers.
times
in
.
?. y sllShHy snort ot $310 Jail , made P'ermanentwere wrong. been
and it has It is
found that they
a.year and^estek^ about true that we have a greater de¬
-- —
reoorts
®nd.in effect«chi J conservar.. Ungton Fund, stated in Pittsburgh. the close of its 28th year on Dec. inLd
s:
'therefore about $274 gree of economic knowledge and
tive basis sets himself a_ goal ;of, Mr. Kulp told more than 100 31, 1955, amounting to $26.26 per
and
savincs
nrobablv understanding about,' the process
/approximately $30,000 ,of^:^ital^iiiyestment dealers and securities shkre on 2,09$,2fe<^
^ut""t6M*il6 rbilSon. of industry than we have ever
femeach jkjq a month paymerrts.: salesmen attending
lese ; figures
Wellington's shares.' These rrfiguresi cotftparfe.
compare;SSe^thSif<m;' may be cur- had. Men in business, banking,
i+u3reforej
In addition to
building the.;trjist Sales Clinic that patience as well
5'5
$51,384,473 Sat
asets iof
net
with
rate
nf
of
about
$258
__
;in World /VVa
v.ilempnt-be; addedc;e£iced
order
Korean War.
.to achieve this goal. •./♦ •
Payments
tmadeY from; tac-iv: Discussing
are
.
cumulated net investment income;
when
and,
com-
are
necessary,
shareholders rinr
of
creased by ,more
than. 11%, from-
II and: the 6,230 to 6,920.
•
/-/:Y>f%>SA:?,r
In their annual
stock market trends,
4.
i_
report to share•
4
the'Insurance,
the Wellington Fund executive
of*
and
iSaid the long sustained rise in the banking industries in the 10 years
stock market during the since the end of World War II,
payments are consistently in ex- past several years is believed to and point out that:
^ •
cess
of available income, there- have
brought many previously
"The
impressive growth was
fore, the withdrawal of- capital lagging stock values fully in line accompanied by higher prices for
must be expected to exhaust the with the level of business activity,
insurance and bank stocks.
This
trust over a period of time.
The corporation earnings and divi- was reflected in the net asset
length ;of time payments may be dends.
value of shares of Century Shares
expected to continue will thus de"If the stock market is now in Trust which, on the basis of prespend upon the amount of capital balance
with the economy,, it ^usi wmcn
«^
iriginally placed in trust, the sub-"should be more sensitive to fftjre
sequent fluctuations in security ^developments - both favorable Per share on Dec. gains1945, Ineluding the capital 31,
distribuvalue and income earnings, and and unfavorable. Therefore, one
tions of $1.76% per share paid in
the size of the payment requsted.;should
be certain that common the 10-year t period there was a
stocks held are reasonably priced
total appreciation of $16.39V3 per
"Obviously no one likes to in^
and in the most
pleted by the use of capital; Where
common
,
if
capital
it
be
can
favorably situated
pre¬
companies from both the shortterm and long-term standpoint. A
vented," Mr. Sholley stated, "and
prudent stockholder would not be
fjustified in carrying more comp
Personal Progress
.H-mon stock than his investment
ROBERT -E. SMITH, previously
objective called for," Mr. Kulp
associated with the Tricontinen- /stated.
'
..
Mr.
^
gional., Manager
^
of - Distributors
Kulp's
highlight of
a
the Hotel Wm
levels and may
Sressional action will delay, any ; behavior of business men and con?umers as we need to know.' It
year, and "it Would be unwise to
possible that capital investcut
taxes >at
,
all
in
of tue
view
,
high level of - business activity.
Disposable personal income prob¬
ably will not rise, therefore, and
Z Xw
'
k,
Mr
Smith's teTntorv
^UI
in-
was
Penn at which offi-
that
observes
cussed
that
maintained at a
the current one, but it
improbable: that it will
to
close
average net assets, compared
with 39/100 of 1% for 1954, and
notes that this is among the lowest
—<.u„4 4l;„
the
saiesmeni
J
life
and
Western Pennsylvania.
as
'
1
and the increase in productivity,
This analysis also emphasizes the
mi_.
1—s-
+V* of
/IIII/IA
OPAin Am \7
in bank stocks.
10%
31,
total
net
more
than 26%
of New York.
make his head-
will
Smith
.
-
Science Fund Sales
,
National City Bank
Mr.
.
#
Science & Nuclear Fund reports
quarters at 19801 Winslow Road,
sales 0f $880,000 for its first
ejght months ended Dec. 31, 1955.
Cleveland.
The Fund
.
„
.
.
,
..
,
appointment of Alexander
Fraser to the Advisory Board of
-aser
The
Investment
the
America
was
Company
of
announced.
Director and
member of the Executive Com¬
mittee
of
the
Mercantile Trust
Mr.
Fraser
is
a
Company of St. Louis and a Di¬
rector
of
the
Mercantile-Com¬
merce
He
National Bank in St. Louis:
was
formerly Chairman of the
Committee and prior
Executive
to
that President of Shell Oil Co.
Mr. Charles H.
Vice-President of the
company, has assumed the office
of Treasurer and Mr. David A.
In
addition,
Schimpff,
Gibb
has been
elected
Secretary.
gross
with
and
sh
net
was
launched last May
assets of $111,000, or $10 a
a^sets
c]ose<J
1955
with total
of $941 000 or $10 76 a
share.
this period, shareholders in¬
creased to upwards of 500 as com¬
In
pared with less than a score ini¬
tially.
(Special to The Financial Chronicle)
Life
Massachusetts
Fund's
1955, the fund reported
assets of $27,121,953, a
increase over the
previous year's figure of
$21,447,-
Net asset value per
share at
280.
probable develophave been
draw
lin-
to
than
working
frnm
parnpd
*d ftpm^orkm^tban
™m<i
depression in agriculture
inevitably to the rest
of the economy. It may be that
wdj spread
economic
of
in
disturbances
countries
the
'*
world
other
will
be
It would be possible to go
States.
listing
on
I would like to
attention to the fact
there are certain underlying
that
*
^
areas
in which weak-
.A
*
1
_
j have tried
^
-
to say
l"
that business
activity in the first part of
this
will be subject to differing
pressures which will maintain it
year
at
or
close
to
levels.
current
It
p0ssible that depressing factors
your
,
which are
* eac* to a moderate downturn
unfavorable or which may be- in the last half of 1956. In either
come unfavorable.
These are the event, it seems unlikely that a
factors which cause me to believe ra^e 0f growth sufficient to mainthat we .are probably close to a . .
f „
emDlovmpnt
will
hfa
turning point in the level of in- taiun
employment will be
dustrial activity. Capital expendi- achieved.
Brief reference was
tures are now proceeding at a very made to some of the problems asfactors in the economy
of
record year
during 1955, President Jonathan
B.
Lovelace
said
in his 22nd
annual report to shareholders.
completed
net assets
a
increased 57%,
$76,456,174,
compared
$48,807,564 at t e en
o
reaching
with
Company
Investment
The
America
possible
exceed
I
mand.
am
consumer
well
aware
of
de-
a
the
a
technical economic problems, but
what
happens
reached
a
when
condition
we
of
have
over-in-
vestment? Business will probably
reduce
capital expenditures under
1954. Number of shares outstand.
Tf hoc fro
ing rose from 5,857,142 to 8 117,- those circumstances. It has frequently been stated that business
926, and the number of shareholders increased from 15,345, to men make long-term capital com28,461.
Net investment income mitments, but it has been shown
was
previously with Waddell & and net asset value per share also over the
past year that investReed, Inc.
reached new highs.
I
CHICAGO, 111.—Clifford Blackburn has joined the staff of Taylor & Co.,
105 South La Salle
Street, members of the Midwest
Stock Exchange. Mr.
Blackburn
-
year-end on 709,054 shares outstanding
was
$38.25, compared rapid rate. Business is expanding sociated with "full employment"
with $35 on 612,723 shares a year
its capacity to a level at which and the methods of curbing inago.
the
output of goods could far flationary forces associated with
Total
With Taylor & Co.
-
considered, but
Dec.
gram,
Major in the Air Force, prior to
which he was associated with the
a
nPPOtn
vulnerable to sudden down-
ments in the next year
Club of New York and served as
a
tively, smaller, in- relation
sufficiently to take care of transmitted via a decline in im¬
expansion in the population ports and exports to the United
insurance company
shares outstanding, total net assets,
and
net
asset value all
reached new highs in 1955. As of
Smith,
payments are probably rela¬
grow
,
—
...
A
Bruee
Brower, Pittsburgh
native of Ohio, is district representative and Milton
a
graduate of the University of Fox-Martin, manager of dealer
Michigan, former Vice-President relations
of
Wellington
Fund,
of the Alpha Delta Phi Alumni were in charge of the day's pro-
Mr.
are
ratios in the investment fact that, since there is no sector nesses may appear, r Currently,
company field.
in which a substantial impetus^ these dangers- appear insignificant
The year-end diversification of can be found it is possible to con- but they could become much .mors
fho
PS
'
«*»4e that m economy becomes, ..5^^
in
and
be
It ipay
envisage.
"built-in"- stabilizers
expense
—
as
activity is
business
sy&w? sssz siz nus sas «xs •» —•"*ia-M%"-d far, the
stocks
Thus
Virginia,
well
Kentucky, West
not
the
that
ance
in
analysis leads to the con-
This
elusions
expenses of the Trust
in 1955 amounted to 36/100 of 1%
of
do
we
small
will be
: W
maintained in 1956.
seems
operating
individuals
or
cease,
could stop buying for some reason
■
a
increase
Mkely to be
■
also
report
The
could
ment
individuals are likely to use part relatively less effective than they
of
their funds to
reduce their were when the economy operated;
debts. The sale of durable goods in a somewhat lower level. Agri¬
can be
expected to decline mod¬ cultural support prices have been
erately.
Expenditures for non- reduced.
Unemployment
insur¬
Weilington Fund diseffective selling tech- approximately 53% in the fire more
^
Inc
the
day-long session at
address
share, or 141%."
the.
about
enough
process
to be sure of
purtent, successfully-managing .-them.-T*We'
rise slightly.. Con- do n0^ know Sq much about the'
^31^?94^dS;S?^ndg?he sTeadv fnt
rise and the for services
expenditures steady inc.
vade
know
economic
aty .about-
1956
of
half
not
do
be maintained at least
caution that we
„
,
number
the
personal income will
in the first
than
means
and other fliquid assets; quite different from the explosive
remaining in his estate after set-inflation and war booms experiproceeds
economic
economics;
study
industry
and
high level of operation. From
longer run point of view, it
probable
seems
or
that
we
are
at
close to a major turning point
in the business cycle.
While the
turning point may not be reached
in
the
wise
current
to
study
year,
it would be
trends
in
private
investment in order to determine
whether they are likely to lead
to a downturn in industrial activ-
ity in the near future.
42
The Commercial and Financial Chronicle
(978)
.
Thursday, February 23, 1956
c
r
Securities Now in
ic Alabama Power Co. (3/15)
17 filed $14,000,000 of first mortgage bonds due
March 1, 1986. Proceeds—To repay bank loans and for
new
construction.
Underwriter:—To be determined by
Feb.
Probable bidders: Halsey, Stuart &
Co. Inc.; Kuhn, Loeb & Co. and A. C. Allyn & Co., Inc.
(jointly); Blyth & Co., Inc. and Kidder, Peabody & Co.
(jointly); Lehman Brothers; Equitable Securities Corp.,
Union Securities Corp. and Drexel & Co. (jointly); The
First Boston Corp.; Morgan Stanley & Co.; Harriman
Ripley & Co. Inc. and Goldman, Sachs & Co. (jointly).
Bids—Expected to be received up to 11 a.m. (EST) on
March 15 at office of Southern Services, Inc., Room 1600,
competitive bidding.
250 Park
Ave., New York 17, N. Y.
Aluminum Co. of America
Feb.
filed
9
,
Bell Telephone
9
filed
Price
—
filed
'
Insurors'
Development Co.
common stock (par $1).
share. Proceeds — To expand service
400,000 shares of
$2.50 per
business.
Office
Birmingham, Ala.
Underwriter
Odess, Martin & Herzberg, Inc., Birmingham, Ala.
Arizona
—
Public
—
Ashland Oil & Refining Co., Ashland, Ky.
filed
100,000 shares of
cumulative convertible
2nd
pfd. stock, $1.50 series of 1952 (no par) to be issued
exercise of stock options offered to officers and
employees of company and its American and Canadian
upon
subsidiaries.
Price—For initial grant of options is $24.28;
and the alternative
the
of
subscription price is $28.56, or 100%
market price at the time the shares are
fair
allotted and
transferred to the
subscriber, whichever is
greater.
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.
Freres & Co. (jointly); White, Weld & Co.
Union Securities Corp. (jointly); Morgan Stanley &
warrants exercisable
on
or
Atlas
Investment
Co.,
Las
Vegas,
Jan. 9 filed 20,800 shares of class B
of which
12,000 shares
Nev.
common
voting stock,
are
bank loans, and for capital and surplus.
Rex Laub and Max Laub, of
Tremonton,
Close Mortgage & Loan Co. and Jack
Underwriters-
Utah, and M. D.
Hemingway Invest¬
(3/19-23)
filed
shares of capital stock
400,000
(par $1).
Higginson Corp., New York.
10,000 shares of 6%
cumulative preferred
93,926 shares of 6Vk % convertible
stock
(par $10) and
preference stock (par $7).
amendment.
Proceeds
—
Price
To
—
To be supplied by
purchase 6,735 additional
shares of $100 par common stock of Southeastern News¬
papers, Inc.
Underwriter—Johnson, Lane, Space & Co.,
Inc., Savannah, Ga.
B. S. F.
stores.
Office—5301
Business
Northwest
37th
—
Supermarket
Price—To be supplied by amendment. Pro¬
investment.
Business—A registered invest¬
Underwriter—None.
of record March
and expansion program
•
and general cor-/
Underwriter—The First Boston Corp.,'
''7r
■
Cuba
Public
March
27.
Price
To
—
be
supplied
.
bonds
amendment.
by
by< amendment.
Works
Construction Co.
Underwriter
•
due
1983.
Proceeds
Price—To
*
Courts
and
supplied
be
To Romenpower
—
Electra
Underwriter—Allen & Co., New York.
Cumberland
1 filed 66,640 shares of common stock (par $100)
being offered for subscription by common stockholders
Corp., Lexington, Ky.
of 12-year 5% sinking fund deben-;
tures due Jan. 15, 1968, and 90,000 shares of common
stock/(par 50 cents) to be offered in units of $500 of
of record
debentures and 50 shares of stock. Price—To be
•
Carolina
Telephone & Telegraph Co.
Dec. 30 filed $900,000
Feb.
Feb.
14, 1956 in the ratio of two
new
shares
supplied
amendment (about $550 per unit).
Proceeds — To
build plant to make charcoal brickettes and chemical
for each five shares
by
held; rights to expire on March 23.
Telephone & Telegraph Co., owner of
Bell
31.67%
of the outstanding stock, sold its 52,762 rights
(36,162 at competitive bidding to R. S. Dickson & Co.
who offered the 14,464 shares to the public
today, Feb.
23, at $145 per share; and 16,600 privately). Price—$125
per share to stockholders.
Proceeds
To reduce bank
byproducts,
loans.
Staats
R.
&
notably furfural.
Underwriters — William
Co., Los Angeles, Calif.; Carl M. Loeb,
GejKalb-Ogle Telephone Co., Sycamore, III.
Underwriter—None.
Dec.
Jo
(letter of notification) 25,695 shares of
common
Century Acceptance Corp.
7 filed $750,000 of participating junior subordi¬
nated sinking fund 6% debentures due Nov.
1, 1970 (with
stock®Price—At par ($10 per share). Proceeds—To be
used |or conversion to automatic dial operation. Office
None;J;
common
22,500 shares
stock purchase
of
warrants for
a
—1127 West
total
stock, par $1 per share).
(in units of $500 each). Proceeds—For
working capital, etc. Underwriter—Paul C. Kimball &
Co., Chicago, 111.
Offering—Temporarily postponed.
common
Price—At 100%
Ventures
Syndicate, Ltd.
inventory and for work¬
ing capital and general corporate purposes. Office—129
South State St., Dover, Del. Underwriter—Mortimer B.
Burnside & Co., Inc., New York.
•
Coastal
States
Gas
Producing Co.
due
amendment.
Feb.
1, 1971.
Proceeds
—
To
Sycamore,
Street,
111.
Underwriter—
(2/24)
convertible subordinated
Price—To be supplied by •
off loans incurred for
pay
Nov.*28 (letter of notification)
46,000 shares of common
stockpar $1). Price—$6.50 per share. Proceeds—To
pay
hank loans and debts; and for working capitaL
Office^-40 National Transit Bldg., Oil City, Pa. Underwriterr—Grover O'Neill & Co., New York.
/
Duro-Test Corp., North Bergen, N. J.
(2/28)
shares of cumulative preferred stock,
seriesJtf 1956 ($25 par-convertible on or prior to March
Feb. 8 filed 42,758
19&6)
15,
be
to
stockholders
offered
subscription by common
27, 1956, at the rate of one
for
of record Feb.
preferred share for each six common shares held; rights
to expire on March 14.
Price — To be supplied by
amendment.
Proceeds
For expansion of plant and
equipment and- of distributing and research facilities;—
and
fpr working capital.. Underwriter
Redpath, Washington, D. C.
—
Auchincloss,
Parker &
land
purchases; for construction of gas pipelines; and
for further drilling
costs, etc. Business—To develop oil
lands.
Office
Corpus Christi, Texas.
Underwriters—Blair & Co.
Incorporated, New York; and First Cali¬
fornia Co., San Francisco, Calif.
Uranium, Inc.
Office—Montrose, Colo. Underwriters-
stockholders
on
the
basis
of
share
one
for
each
-
five
shares
held; rights to be exercisable over a 45-day pe-~
riod. Price
$3.60 per share. Proceeds — For working
capital. Office—26 Journal Square, Jprsey City 6, N. J.
—
Underwriter—None.'
-
.
•
'*'
•
't
if Eagle-Picher Co., Cincinnati, Ohio
"
Feb. 13 (letter of notification) 8,000 shares of common
stock (par $10) to be offered under the Employees' Stock
Purchase
Consolidated Cigar Corp., New York
7
filed
general
•
Eagle Fire Insurance Co.
1 (letter of notification) 72,165 shares of common
stock
(par $1.25) tov be offered for subscription by
Feb.
*
v
.
purposes.
be
(3/1)
90,000 shares of common stock (no par).
supplied by amendment.
Proceeds—For
corporate
Dillon &
purposes.
Underwriter
—
Eastman,
Co., New York.
Cooper-Jarrett Inc.
Jan. 10 filed
Cleveland
Elm
.
.
Dennis Run Corp., Oil City, Pa.
-
Dec. 23 (letter of
notification) 295,000 shares of common
stock (par one cent). Price—$1 per share. Proceeds—
To acquire property, purchase
Price—To
Chicago
-
Rhoad£s & Co., New York, N. Y., and The Bankers Bond
Co., Louisville, Ky. Offering—Expected momentarily.
—
Feb.
offices
-
share for-
new
share
•
all
7, 1956, at the rate of one
New York.
about March 12, 1956 in the ratio of one new
for each 10 shares held; rights to subscribe on
Denver, Colo.
to
of record
General Investing Corp., New York; and Shaiman &
Co,
to
j
164,117 shares of common stock (par $25) /
be offered for subscription by common stockholders-
(Republic of) (2/27-3/2)
Nov. 21 filed $2,000,000 of 4% Veterans,
rate
Private Wires
^
(3/8)
16 filed
porate purposes.
(3/1)
I
2,500,000 shares of commoti stock (par one
cent). Price—40 cents per share. Proceeds—For explora¬
tion and development expenses and for
general corpo¬
San Francisco
Corp., Pasadena, Calif.
Steel Co. of America
modernization
—
Pittsburgh
Underwriter—Pasadena
if Crucible
Under¬
Nov. 9 filed
Philadelphia
Calif.
• Budd Co., Philadelphia, Pa. (3/13)
Feb. 20 filed 395,096 shares of common stock - (par $5)
to be offered for subscription by common stockholders
Colohoma
Boston
At V
working capital and other corporate pur-;
Office—165 South Fair Oakes Ave., Pasadena, r
poses.. >
concern.
Ave., Miami, Fla.
(par $1) and $2,500,000 of 5%
for
New York
—
Crown
writer—None.
debentures
92,636 shares of capital stock (par $1) to
subscription by stockholders of record
Jan. 20, 1956, at the rate of one new share for
each two
ceeds—For
Price
ceeds—For
Feb. 10 filed by amendment (formerly filed under Coas¬
tal States Oil & Gas Co.) 100,000 shares of common stock
Co., Birdsboro, Pa.
ment company.
1, 1971.
each 10 shares held; rights to expire on March 21, 1956. Price—To be supplied by amendment.
Proceeds—For;
retail
be
shares held.
debentures due Feb.
City Plating Co., Pasadena, Calif. .
»
(letter of notification) 14,999 shares of commonstock (par $10) of which 2,499 shares are to be offered/
to officers and employees.. Price—$20 per share.
Pro-:
Price—100%
Dec. 30 filed
offered
subordinated
Feb.
Chemical
Augusta Newspapers, Inc., Augusta, Ga.
filed
^
B-Thrifty, Inc., Miami, Fla.
,
Nov. 23 filed 37,000 shares of class A common stock
(par
$25). Price—$38 per share.- Proceeds—To open addi¬
of
Price—To be supplied by amendment. Proceeds — For
investment. Office—Englewood, N. J. Underwriter—Lee
13
~
Couture National Car Rental System, Inc.
Jan. 30 (letter of notification) $300,000 of 6% convertible'
•
convertible subordinated
of principal amount.
Proceeds—To make additional cash payment on purchase
contracted and for mining expenses.
Office—Salt Lake
City, Utah. Underwriter—None.
debentures due 1976.
Co., Denver, Colo.
Fetv 3
Mines, Inc.
$900,000 of 8%
filed
•
.
Proceeds—To finance vehicle purchases. Office—1
825 Fifth Ave., Miami Beach, Fla.
Underwriter—Atwill;
& Co., Inc., same city. ®
V
Lizard
17
share). Proceeds!'
incident to mining operations. Address
175, Phoenix, Ariz. Underwriter—Keim
expenses
—P. O. /Box
par.*
Big Ute Uranium Corp., Overton, Nev.
Oct. 28 (letter of notification) 3,000,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Proceed*
—For mining expenses.
Underwriter—James E. Reed
Co., Inc., Reno, Nev.
Blue
v"'
com- : /
Price—At par (25 cents per
stock.
mon
March 6.
Nov.
if Atomic, Electronic & Chemical Fund,
Jan.
on
re¬
detachable
Co., of Las Vegas, Nev.
17
,
Big Ridge Uranium Corp., Reno, Nev.
Oct. 19 (letter of notification) 9,000,000 shares of common
stock (par one cent). Price — Three cents per share.
Proceeds—For exploration and development costs. Office
—206 North Virginia St., Reno, Nev. Underwriter—Mid
/
America Securities, Inc., Salt Lake City, Utah.
Southern
to be offered for public sale
at $50 per share and 8,800 shares are to be offered in
exchange for preferred stock. Proceeds—For payment of
Feb.
(EST)
a.m.
.
Copper Corp., Phoenix, Ariz.
Jan. 27 (letter of notification) 1,200,000 shares of
—Blyth & Co., Inc., New York.
purchase
2, 1956, and to ex¬
after Jan.
pire Jan. 2, 1958.
Price—50 cents per share.
Proceeds
—To selling warrant holders.
Office—2411 North Broad
St., Philadelphia, Pa. Underwriter—None.
Inc.
11
Bids—Expected to be
Prcoeeds—For general corporate purposes.
if Atlas Credit Corp., Philadelphia, Pa.
Feb. 13
(letter of notification) 80,000 stoc.k
ment
the
additions
Co.; The First Boston Corp.
c
,
.
Telephone & Telegraph Co., parent, and *
treasury for expenditures; made for
and improvements. Underwriter — •
determined by competitive building,: Probable
reimburse
property
be
ISSUE
REVISED
tional
itlesman of the insurance firm.
20
(#6)® -"
$35,000,000 of 40-year debentures:, due
Proceeds—To repay outstanding advances
March 1, 1996.
Jan.
Finance
Co., Phoenix, Ariz.
Sept. 16 filed 78,006,081 shares of common stock to be
offered for subscription by holders of life insurance
policies issued by Public Life Insurance Co. Price—20
cents per share. Proceeds—For working capital. Under¬
writer—None, sales to be directly by the company or by
Feb.
■
ITEMS
^ Cooperative Grange League Federation
.
•>Exchange, Inc. V
^
v
Feb. 15 filed $2,000,000 of 4% subordinated debentures; •
7,500 shares of 4% cumulative preferred stock (par $100) and 100,000 shares of common stock.
Price—Of deben¬
tures, 100% of principal amount; of preferred, $100 per
share; ; and of common, $5 per share.
Proceeds—To fi-nance construction of a new petroleum terminal at Al- V
bany, N. Y., estimated to most $465,000, and to provide
;
funds to cover redemptions of outstanding common stock, *
estimated at not more than $400;000; to repurchase out- ; ,
standing shares of preferred stock and to provide funds '•
to be advanced to a subsidiary for similar "repurchase of
its preferred stock, and for working capital/' Office—*
Ithaca, N. Y.... Underwriter—None. >
;
—For
if American Frontier Corp., Memphis, Tenn.
Feb. 15 filed 175,000 shares of class A common stock (par
$1).
Price — $10 per share. Proceeds — Together with
other funds, to purchase 1,000,000 shares of common
stock (par $1) of American Frontier Life Insurance Co.
10
Co. of Pennsylvania
from American
ceived up to
Underwriter—The First
Corp., New York.
American
»
purchase contracts, notes and mortgages from con¬
Office—Mt. Prospect Ave., Newark, N. J.' Un- derwriter—Marlin Securities Co., same city.-"
"
/
thur V.
Feb.
*
tractors.
and
Underwriter—None.
Inc.
and Lazard
common
Davis, Board Chairman.
Co.,
—To
stock (par $1).
Price—To be supplied by amendment. Proceeds—To Ar¬
Boston
Finance
bidders:
(2/27)
150,000 shares of
&
Discount
(letter of notification) 600,000 shares of common
stock (par 10 cents). Price—50 cents per share. Proceeds
To
ADDITIONS
PREVIOUS
SINCE
•
Bankers
to
* INDICATES
.....
Jan. 20
Feb.
r
^
;
(with ICC) 125,000 shares of common stock
Price—To be supplied by amendment.
Pro¬
selling stockholders.
Underwriter—Allen &
Co., New York. Offering—Expected momentarily.
(par $1).
ceeds—To
Plan.
(which
on
—
At
the
average
market
price
was
change
Price
$300,000.
$37.50 per share on the New Yofk Stock Ex¬
Feb. 9, 1956); not to exceed an aggregate of
Proceeds—To
None.
East Basin
purchase stock.
Oil
&
Underwriter—
"
;
Uranium
Co.
J
Oct. 25
(letter of notification) 1,500,000 shares of com¬
mon
stock (par one cent).
Price—20 cents per share.
Proceeds—For expenses incident to drilling for oil and
gas. Office—Colorado Bldg., Denver, Colo. Underwriter
—Philip Gordon & Co., Inc., New York.
*
Volume 183
Number 5510
The Commercial and Financial Chronicle
...
'
-
'f'M
■
(979)
Elgen Corp., Dallas, Texas
17 filed 38,600 shares of common stock
(paf\25
cents) being offered for subscription by stockholders oi
record Feb. 6 on a l-for-10 basis; rights to expire on
Feb. 29. ■ Price—$12-25 per share. Proceeds — To repay
bank loans; for new construction; and for other
corpor¬
ate purposes.
Business—Furnishes oil and gas industry
with an electrical well logging service. Underwriter—
NEW
Jan.
None-
"
Coastal
the
intention
stock
of
the
company
Debentures & Common
Trane
Co.
120,000 shares-
■».*>,
Co.
Bank of
ifra.-tH'
Investments, Denver, Colo.\
First Bank Stock
(par
$20)
Corp., Minneapolis, Minn..~?
of
Northern
Minnesota
Common
Long
Island
EST)
a.m.
11
Laclede
Common
Arena,
(Offering
200,000 shares
Inc
&
■
Co.)
National
Bank
of
Hibbing
(Minn.);
.
.
.
$50) of Duluth National Bank which will be
after
100%
a
stock
common
dividend
has
&
Co.,
Inc.)
$1,000,000
to
'v
•
on
March
on
Pitt
St.
Louis
distrib¬
June 30 filed
Slick
(D.
company
invited)
202,657
•
■
•
15
'
*
A.
Lomasney
.
stockholders—underwritten
common
Steel
to
G.
EST)
a.m.
Bonds
$14,000,000
&
Co.)
shares
$1,500,003
of
preferred
and
stock
common
&
280,000
underwritten
by
shares
422,992
7.
shares
Texas Electric
(Bids
Auchincloss,
Steel
&
to
ba
to
Bonds
(Bids
be
$7,000,000
Bonds
$10,000,000
Bonds
invited)
to
be
$25,000,000
to
shares
Bonds
invited)
$25)000,000
Co
be
Preferred
invited)
March 22
..Common
-
165,000
Preferred
■
EST)
invited)
Electric
(Bids
Weeks)
(Tuesday)
a.m.
(Wednesday)
Castings Corp
(Hornblower
Common
$2,250,030
Pennsylvania Electric Co
Price—$8 pei
General
11:30
(Bids
Service Co
11:30 aim. EST) $10,000,000
February 29
Co.)
Pacific Gas & Electric Co
Pennsylvania
capital; for exploitation
"Totosave" system; and for marketing of
"TrbpteRay" infra-red space heater. Office — Pittsburgh? Pa
Underwriter—Barrett Herrick & Co., Inc., New York!'
n
Com,
shares
Narragansett Electric Co.——:
Notes & Common
(Bids
afid
Reiter
March 20
stock
of
J.
(Bids
Spokane Natural Gas Co._____
400,000
Louisiana Power & Light Co
Common
be
Redpath)
(Monday)
Higginson Corp.)
(M.
shares
——
stockholders—to
&
by
Common
Sons)
19
Western Greyhound Racing, Inc.
$1,068,950
Casting, Inc..
Edwards
Parker
Proceeds—For working
Rotary Electric Steel
$3,000,000
(Thursday)
Co
Common
*
■
to:-'
■
•
Northern States Power Co
y
-
.
Assurance
Co., Phoenix, Ariz. :? c
Dec. 2 (letter of notification) 2,000 shares of
class :B
voting common stock (par $25), being offered fq^& sub¬
scription by holders of class A common stock ojnj(.a.2for-1
basis from Jan.
share.
per
4143 N.
15
(Bids
Northern
£0
States Power
(Bids
20
•
Ave., Phoenix, Ariz. Underwriter—
filed
Southwestern
$37,500,000
of
convertible
$10,000,000 ',
EST)
Co.,
incident to
(Bids
1
Gordon
Steel
other
stockholders—no
underwriting)
of
862
shares,
(Jay
to
expire
stock
to
on
be
Proceeds—To
Webber,
Jcnes
&
Feb.
offered
repay
24.
Unexchanged new preferred
publicly. Price—$20.50 per^Hse.
bank loans. Underwriters—42aiie,
Jackson & Curtis, New York,
Templeton, Los Angeles, Calif.
and
Mitehum,
General Uranium Corp. (N. J.), New York"*^
18 filed 400,000 shares-of common stock
Jan.
cents).
ities,
Price—$1
per
share.
Proceeds—For
of property and underground
survey
Underwriter—None.
Maurice
(Offering
-
to
Jan.
18
(C. G.)
Piasecki
capital.
First
California
5
First
Co.)
(Monday)
Common
to
be
(Wednesday)
Light Co
(Monday)
City Power & Light Co
(Blyth &
Co.,
inc.)
(Wednesday)
England Electric System
to
stockholders—Bros
$157,300
May 1
(Bids
&
Co.)
be
to
Co., Ltd
Duke
Power
to
be
debetnures
and
—-Debentures
invited)
$40,000,000
(Monday)
Bonds
to
be
invited)
May 8
El Paso
$30,030,000
(Tuesday)
Electric Co.—-
615,000 shares of stock
(Bids
to
be
May 10
(Tuesday)
Telephone Co. of Pennsylvania
(Eids
Pacific Coast
11
a.m.
EST)
Debens.
.Preferred
invited)
and
450,000
Van Waters & Rogers, Inc
shares
Common
Inc.)
(Thursday)
Co
^Common
-
Common
Schwabacher & Co.)
(Blyth & Co.,
Duke Power
$2,000,000
(Offering to stockholders—no underwriter) 367,478 shares
$35,000,000
Aggregates, Inc
(Blyth & Co., Inc.
834,976 shares
Co
(Bids
Debs. & Com.
$20,500,000
6
Common
invited)
(Tuesday)
May 7
Common
to stockholders—to be underwritten by
Boston Corp. and Johnston, Lemon & Co.)
148,517 shares
March
Preferred
$12,000,000
Columbia Gas System, Inc.
Co
Co.)
Common
—Debentures
Deetjen
Westcoast Transmission
Stone
$15,000,000
Common
underrwiter)
be
Bonds
invited)
April 16
Kansas
New
shares
400,000
may
shares
(Tuesday)
Common
Co.)
Manager
Corp.) 56,025
Securities
(Offering to stockholders—to be underwritten by Union
Securities Corp.) approx. $5,000,000
$6,000,000
Corp._^
(Eastman, Dillon &
Bonds
/.
Co
April 4
Illinois
(Offering
The
$16,000,000
stockholders—Dealer
Webster
(Bids
'
(Monday)
Washington Gas Light
Bell
Tidelands Oil Co.
for cost of new drilling platform and
expenditures and for working
Office—Corpus Christi, Tex.
Underwrite?*—
other
$4,000,000
Common
(Emanuel,
Schack, Middletown;;"N.'Y.f
filed
of
invited)
development.
to company, to pay
cost
&
stockholders—no
Aircraft
,
shares
Central
Sons, Inc
plant!facil¬
350,000 shares of common stock
(pa£J$j).
Price—To be supplied by amendment.
Proceeds—jtrom
sale of stock, together with funds from private sale" of
$3,000,000 notes to insurance company, to repay advances
fer
to
—Debentures
March
4
(Thursday)
April 3
(Offering
is President.
Glasscock
Electric
Bonds
Willcox & Gibbs Sewing Machine Co
;
$55,000,000
Florida Power & Light Co
Preferred
EST)
a.m.
Kaufmar.n &
W.
.
—4.^7
be
April 18
Rokeach (I.) &
cumulative preferred stock, 5% 1947 series (par
$29)^n
a basis of one new share and $1.50,
plus 8V3 centfc'£t>
crued dividend to Feb. 29, 1956, for each old share^bfffer
.
Paso
(Offering to stockholders—underwritten by Morgan
Stanley & Co.) 194,155 shares
-"'7
-i-asm&i
California
part of the outstanding 1,437,724 shatfiftsi^bf
a
to
(Bids
/
&
$4,000,000
Riegel Paper Corp
Jan. 17 filed 718,862 shares of 4x/i% cumulative preferred
stock (par $20), being first offered in exchange fdf-^718,.
251,405
—
(Morgan Stanley
repaym^aUof
Weeks, New York.
Telephone Co.
I
(Offering
Common
*
Riegel Paper Corp
Price—
by
Bonds
invited)
Co
Common
„_
EST)
a.m.
(Bids 11
general corporate purposes^ Un¬
derwriter—Hornblower &
General
Proceeds—For
be
April 2
..Common
Mississippi Power Co.
Foundries amfc3f),-
Securities Corp.
to
Power
$1,000,000
Glass Fibers Co.—
to
underwritten
(Tuesday)
March 29
El
i
Investing Corp.)
(Bids 11
and
Bonds
Mississippi Power Co
Castings Corp. (2/29)
''-isa£SStFeb. 1 filed 165,000 shares of common stock (par&Lpof
which 67,799 shares are to be sold for account adMtee
amendment.
(Bids
(Eastman, Dillon & Co.) 90,000 shares
(Offering
be
69,670 shares
New York Telephone Co
7
Equ!p. Trust Ctfs.
Consolidated Cigar Corp._
L-O-F
Co.)
$'10,000,000
$3,900,000
CST)
noon
General Steel
company, 67,201 by American
000 shares by Baldwin
&
(Thursday)
Colohoma Uranium, Inc
mining operations
Office—Kemmerer, Wyo. Underwriter—Philip
& Co., Inc., New York 6, N. Y.
loans
Co
Inc.)
Chicago & North Western Ry
Hills Mining and Oil, Inc.
(letter of notification) 1,200,000 shares of com¬
stock (par five cents). Price — 25 cents per share
bank
/;•
Hutton
March 27
77
4
by
J
stockholders—to
E.
$6,555,000
Service
&
March
sifiking
be^siip-
Gas
,supplied
;
,
—Equip. Trust Cjfi.
noon
Read
(General
expenses
Preferred
subordinated
York.
Proceeds—For
CST)
7.
*..
Co.—
a.m.
Public
shares
to
W.
Georgia
plied by amendment. Proceeds—For plant expansioii-etfd
working capital. Underwriter—Lehman Brothers, New
Jan.
70<M66
(3/8)
debentures due March 1, 1976, and $10,000,000 of
fund debentures due March 1, 1976.
Price—To
mon
11
(Bids
(Dillon,
Feb.
CST)
a.m.
Seaboard Air Line RR
to
+ Fruehauf Trailer Co.
(Offering
Common
'
April 1, 1956. Price—$$6r50
Proceeds—For capital and surplus. Offjqe—
19th
.;
(Thursday)
Atomic, Electronic & Chemical Fund, Inc
of
Frontier
shares
•
—
11
150,000
(White, Weld & Co.) $3,505,000 of notes and 70,100
of
be
to
and
.—Preferred
Airways, Inc.
(Offering
Statement! ex¬
60,000 shares of five selling stockholders.
ahare.
to
(A.
Packaging International, Inc.
300,000 shares of common stock (par lOf),
of which 250,000 shares of for account
Common
(Bids
.
(Tuesday)
Auchincloss, Parker & Redpath)
*
Fort
shares
Parker Petroleum Co., Inc.—Preferred & Common
debentures
Corp.
(Offered
(par
Feb. 27.
9.
Common
60,000
(Wednesday)
'.
•'.
.
(Lee
Duro-Test
eacf^of
proposals will-expire
pected to become effective
Co.)
stockholders—bids
y.
March
February 28
(f) 13 shares for each of the 1,000 shares X)f
capital stock (par $100) of Worthington NationaFlBank
Worthington, Minn. The exchange period under
the
by
125,000 shares of stock
outstanding
been
uted; and
underwritten
t
&
Alabama Power Co
(First California Co.) $2,020,000
i
1(
(Stroud
|.5
(e)
shares for each of the 4,000 shares of common stock
14
March
$787,500
Ritter Finance Co., Inc.—l_Debens. & Class B Com.
of LaCrosse (Wis.); (c) nine shares for eachjof
3,000 shares of capital stock (par $100) of
FirstJNjational Bank of Virginia (Minn.); (d)
(eight shares jpr
each of the 3,000 shares of capital stock
(par $100) jof
First
be
395,096 shares
Co
Common
Nevada Natural Gas Pipe Line Co.— Debs. & Com.
,7;
Gas
the
The
Hamnnll
March
$7,000,000
__
EST)
a.m.
(Dunne
National
Bank
(Shearson,
■
BankCof
National
(Bids 11
(Bids
(Minn.); (b) 1.2 shares for each of the 25,000
capital stock (par $10) of Batavian
of
>;
;
,..
Common
Bonds
Kansas Gas & Electric Co
lowing banks (except the preferred stock of Duluth Na¬
tional Bank) at the following ratios of
exchange^' fa)
IV2 shares for each of the 75,000 shares of capital stock
shares
(Tuesday)
■■■
-
Feb. 6 filed 221,500 shares of capital stock (par $10) to
be offered in exchange for the capital stock of the, .fol¬
Duluth
13
Higbie Manufacturing Co
.7'
Kansas Gas & Electric Co
'
IJ
-"*>■*
•
Bonds
$2,000,000
Common
America, N. T. & S. A
(Offering to stockholders—to
150,000 shares
(Republic of)
(Allen & Co.)
$47,500,000
Co
Elyth & Cor, Inc.)
Cuba
by
-Debentures
Brothers)
Electric
Budd Co.
Common
Corp.)
underwritten
164,117 shares
(Offering to stockholders—to be underwritten by Blyth &
Co.,
Inc. and Dillon, Read & Co.
Inc.) 1,600,000 shares
(Monday)
of America
(The First Boston
be
s.
*
the
February 27
&
^
Common
Co
March
Common
—
;
i
(Offering to stockholders—to be underwritten by Merrill Lynch,
Pierce, Fenner & Beane) 298,473 shares
$2,500,000 debentures and
(Smith,'Barney & Co.)
Aluminum
stockholders—to
Gas
par
H. Carl Aiken
to
First Boston Corp.)
Trailer
Oklahoma
100,000 shares of stock
sell/aj^/pf
to
this time.
at
(Friday)
Producing Co
(Blair & Co. Incorporated)
Price—For debentures,
(in denominations of $1,000 each) and f<#0to<ik
$2 per share. Proceeds—To retire royalty units
de¬
bentures; for capital expenditures; and for \^jfking
capital. Underwriter—For $1,500,000 of the debehUixes*—
at
common
(Offering
Fruehauf
(Thursday)
Co. of America.
(Lehman
States
and to the company's present security holders.
company
It is not
Steel
The
debentures .are to be offered publicly; the
remaining
$500,000 of debentures and the stock to be reserved for
sale by the company to associates of the officers**#
Crucible
$9,900,000
February 24
'
•
CST)
March 8
/
^-Equip. Trust Ctfs.
noon
CALENDAR
(Thursday)
RR
(Bids
Empire Petroleum Co., Denver, Colo.
Jan. 18 filed $2,000,000 of series "C" 6%
conv^titje
debentures due 1970 and 1,000,000 shares of ebhautton
stock (par $1), of which $1,500,000 principal
amfc^t of
the
February 23
Illinois Central
ISSUE
4
63,560
September 25
(Bids
shares
(Tuesday)
Virginia Electric & Power Co
t®
be
invited)
Bonds
520,000,000
captal
Co., San Francisco,
March 7
October 2
(Wednesday)
(Tuesday)
Calif.; WillianOR.
Continued
Houston Lighting & Power Co
on
page
[44
(Bids
11:30
a.m.
EST)
Bonds
$30,000,000
Columbia Gas System, Inc
(Bids to be invited)
——Debentures
$33,000,000
44
The Commercial and Financial Chronicle... Thursday, February 23, 1956
(980)
Continued from page
&
Staats
&
Temple St., Salt Lake City, Utah. Underwriter—Melvin
G. Flegal & Co, Salt Lake City, Utah.
43
Calif.; and Eastman. Dillon
Offering:—Expected today (Feb. 23).
Co., Los Angeles,
Co., New York.
Golden
Uranium
Dawn
Corp.,
Buena Vista, Colo.
of notification) 3,000,000 shares of capital
(par five cents). Price—10 cents per share. Pro¬
ceeds
For mining expenses. Underwriter — Bel-Air
Dec. 27 (letter
stock
—
Securities Co., Provo,
Utah.
Carbondale, III.
Jan. 30 filed $550,000 of 6% 10-year convertible sub¬
ordinated debentures due April 1, 1966.
Price—100%
of principal amount. Proceeds—To repurchase stock of
company held by C. T. Houghten. Underwriter—Edward
X>. Jones & Co., St. Louis, Mo.
Grammes
■
•
•'
■■-■■■
-i
.
,
-;
•
.
.
•
•,*
6,...■
-
•'
ploration and development of mining properties of ReMineros Mexicanos, S. A, Mexican subsidiary,
and to discharge note. Office — Houston, Tex. Under¬
writer—Gearhart & Otis, Inc., New York.
cursos
International
•
f
f
24,000 shares of capital
vtock (par $5) to be offered first to stockholders; then
policyholders and the public. Price—$10 per share. Pro¬
ceeds—For working capital. Address—P. O. Box 2231,
30
(letter of notification)
Baton Rouge, La.
Natural
Gulf
Dec.
30
Jan.
1,
filed
1966.
Underwriter—None.
Gas Corp.,
^
.
New Orleans, La.
$600,000 oi- 10-year 5% debentures due
Price—100% of principal amount.
Pro¬
ceeds—For construction costs.
Underwriter—None.
Plastic
Industries Corp.
Oct. 12 (letter of notification) 150,000
stock
(par 10 cents).
For advances
to Arliss
Office
ment, etc.
—
shares of common
Price—$2 per share. Proceeds—
Co, Inc. for purchase of equip¬
369-375 DeKalb Ave., Brooklyn 5,
& Co, New York.
Corp., Pittsburgh, Pa.
Jan. 10 filed 1,534,446 shares of capital stock (par $25)
"being offered in exchange for shares of common stock
of Warren Petroleum Corp. in the ratio of four shares of
Gulf for each five shares of Warren.
If, prior to the
-expiration of the offer, less than 1,753,133 Warren shares
<90%) but at least 1,558,340 shares (80%) are deposited
■thereunder, Gulf may at its option accept all shares of
IVarren so deposited. Offer will expire on March 2,
'unless extended to April 2.
•
Hammermill
Paper Co., Erie, Pa.
Dec. 20 filed 166,400 shares of common stock (par $2.50>
being offered in exchange for shares of capital stock
a! Watervliet Paper Co. in the ratio of 26 shares oi
Hammermill
vliet stock.
common
stock for each 25 shares of Water¬
More than the required 128,000
;
Kansas Gas & Electric Co.
Helio Aircraft
Corp., Canton, Mass.
150,000 shares of common stock
(par $1).
-Price—To be supplied by amendment. Proceeds—For im¬
provements, research, development and working capital.
Office—Metropolitan Airport, Canton (Norwood P. O.),
JUass.
Underwriter—To be supplied by amendment.
Helio Aircraft Corp., Canton, Mass.
Nov. 3 (letter of notification) 24,000 shares of common
otock. Price—$5 per share.
Proceeds—For administra¬
tive and
engineering
Office
expenses.
.Airport, Canton (Norwood P. O.), Mass.
—
Metropolitan
Underwriter—
^ Higbie Manufacturing Co.
(3/13)
$1), of
company
30,000 shares for account of
a selling stockholder.
supplied by amendment.
Proceeds—For
plant expansion and machinery and equipment. Business
Manufactures and sells steel tubing and fishing reels.
Office—Rochester, Mich. Underwriter—Shearson, Hammill & Co., New York.
Price—To
be
Household Gas Service, Inc.
Jan. 6 (letter of notification) 920 shares of 6% cumula¬
tive preferred stock,
trice—At par ($25 per share) and
accrued dividends.
Proceeds—To repay
indebtedness and
for working capital.
Office — Clinton, N. Y.
Under¬
writer—Mohawk Valley Investing Co., Utica, N. Y.
Houston
Feb. 9 filed
Proceeds
Lighting & Power Co. (3/7)
$30,000,000 of first mortgage bonds due 1986.
To repay bank loans and for construction
Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
—
program.
Inc.; Smith, Barney & Co., Lazard Freres & Co. and
Blyth & Co., Inc. (jointly); Lehman Brothers, Union
Securities Corp. and Salomon Bros. & Hutzler
(jointly);
Kidder, Peabody & Co.;
Equitable Securities Corp.
Bids—Expected to be received up to 11:30 a.m. (EST) on
March 7.
Ideal-Aerosmith, Inc., Hawthorne, Calif.
16
(letter of notification) 150,000 shares of capital
(par $1). Price —$2 per share. Proceeds —For
equipment, machinery, inventory, etc. Office—12909 So.
stock
Cerise
Ave., Hawthorne, Calif. Underwriter—Samuel B.
Angeles, Calif.
Franklin & Co., Los
Inland
Mineral Resources
Corp., N. Y.
(letter of notification) 600,000 shares of com¬
(par one cent).
Price—50 cents per share.
Dec.
12
mon
stock
Proceeds—For mining
New
same
held
common
common
stock
shares of
for each share of First National
of record Feb.
as
(par $5) to
common
of 6V2
24, 1956.
★ Massachusetts Hospital Life Insurance Co.
Feb. 17 filed (by
amendment) 300,000 additional shares
of beneficial interest in the Massachusetts Life Fund and
4,000
trust
certificates.
For investment.
Price—At
market.
Proceeds—•
'
Midland General
\
Hospital, Inc., Bronx, N. Y.
Jan.
and
(jointly); Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Lehman Bro¬
thers and Bear, Stearns & Co. (jointly); Blyth & Co,
Inc. and The First Boston Corp. (jointly); Glore, Forgan
(2/27)
Kansas Gas & Electric Co.
Jan. 27
filed 200,000 shares of common stock (no par).
Proceeds—To repay bank loans and for construction pro¬
gram.
Underwriter—To be determined by competitive
bidding. Probable bidders: Glore, Forgan & Co. and
Goldman, Sachs & Co. (jointly); Merrill Lynch, Pierce,
& Beane, Kidder, Peabody & Co. and White,
Co. (jointly); Lehman Brothers; Union Securi¬
ties Corp. Bids—Expected to be received up to 11 a.m.
Fenner
Weld &
(EST)
on
Feb. 27.
Kassel
Feb.
6
Base
Metals, Inc.
(letter of notification)
Underwriter—None.
120,000 shares of capital
(par 10 cents), of which 20,000 shares are being
sold by Burt Hamilton Co. and 100,000 shares by Kassel
Price—$2.25 per share.
Proceeds—For min¬
Office—1019 Adolphus Tower Bldg, Dal¬
las, Texas.
Underwriter—First Western Corp, Denver,
company.
expenses.
Ltd., Madison, N. J.
Feb. 7 filed $4,000,000 of
participations in
ited partnership interests in the venture
capital
lim¬
as
to be sold in
minimum units of $25,000.
Proceeds—For expenses in¬
cidental to oil exploration
program.
Underwriter—Min¬
eral
Corp.
Co. and Goldman, Sachs & Co. (jointly); Harriman
Ripley & Co, Inc. Bids—Expected to be received up to
11 a.m. (EST) on Feb. 27.
construction/
—
reserve, etc.
Projects Co, Ltd,
on
"best efforts basis."
Mississippi Power Co.
(3/1)
Feb. 3 filed
$4,000,000 of first mortgage bonds due March
1, 1986 and 40,000 shares of cumulative preferred stock
(par $100). Proceeds
Toward the construction or ac¬
quisition of permanent improvements, extensions and
—
additions to the company's utility plant.
Underwriters—
To be determined by
competitive bidding. Probable bid¬
ders: (1) For
bonds—Halsey, Stuart & Co. Inc.; Merrill
Lynch, Pierce, Fenner & Beane; Lehman Brothers; Kid¬
der, Peabody & Co.; Union Securities Corp, Equitable
Securities
Corp. and Drexel & Co. (jointly). <2) For
preferred stock—W. C. Langley & Co.; Glore, Forgan &
Co. and Sterne, Agee & Leach
(jointly); The First Bos¬
ton
Corp.; Blyth & Co, Inc.; Kidder, Peabody & Co. and
White, Weld & Co. (jointly). Bids—To be received up
to 11
a.m. (EST) on March 1 at office of
Southern Serv¬
ices, Inc., Room 1600, 250 Park Ave, New York 17, N. Y.
Modern Homes Corp.,
Dearborn, Mich.
Jan. 20 filed 125,000 shares of common stock
(par $1).
Price—$4 per share. Proceeds—To reduce current liabil¬
ities, to finance contemplated increased volume of busi¬
and for
ness
and
working capital.
sells prefabricated
Business
homes.
—
Manufactures
Underwriter—Campbell*
McCarty & Co, Inc., Detroit, Mich.,
Monitor
Colorado.
it Kelly & Clark Mining & Exploration Co.
Feb. 14 (letter of notification) 1,000,000 shares of com¬
mon stock.
Price—At par (25 cents per share).
Pro¬
ceeds
For expenses incident to mining operations.
Office—Basalt, Nevada.
Underwriter—None.
—
^ Knickerbocker Shares, Inc.
Feb. 13 filed 500,000 shares of beneficial interest in the
Knickerbocker Fund.
Price — At market.
Proceeds —
For investment.
Exploration Co., Denver, Colo.
(letter of notification) ,>00,000 shares of common
(par five cents),. Price—$1 per share. Proceeds—
For mining expenses.
Office—623 First National Bank
Dec. 9
stock
Building, Denver 2, Colo.
Underwriter —Globe
Corp, Jersey City, N. J.
Secu¬
rities
Mormon Trail Mining Corp., Salt Lake
City, Utah
(letter of notification) 3,000,000 shares of capital
(par one cent). Price—10 cents per share. Pro¬
ceeds—For mining expenses.-Office—223
Feb. 9
stock
Phillips Petrol¬
Eldg, Salt Lake City, Utah. Underwriter—Frontier
Investment, Inc., Las Vegas, Nev.
eum
Feb. 16 filed 60,000 shares of common stock (par
which 30,000 are to be sold for account of the
Dec.
stock
outstanding
Mineral Projects-Venture C,
None.
and
Marine Midland
(2/27)
$7,000,000 of first mortgage bonds due 1986.
Proceeds—To repay bank loans and for construction pro¬
gram. Underwriter — To be determined by competitive
bidding. ;Probable bidders: Halsey, Stuart & Co. Inc.;
Union Securities Corp. and Stone & Webster Securities
Jan. 27 filed
ing
Dec. 29 filed
exchange for
working capital,
Underwriter—None.
10.
in
New York.
Investment Co.,
stock
effective Jan.
offered
of The First Bank of Herkimer at rate
12 filed 24,120 shares of common stock
(no par)
30,000 shares of $6 dividend preferred stock (no
par). The company does not intend presently to sell
more stock than is
required to raise, at most, $2,700,000.;
Price
$100 per share. Proceeds
For
shares (80%
of outstanding Watervliet stock) have been deposited for
exchange. The offer has been extended until March 19.
Statement
be
Midland Corp.
filed 65,500 shares of common
6
Ltd.
Price—At par (IOC
Israel pounds each, or about $55 in U. S. funds), payable
in State of Israel Independence Issue Bonds only. Offlet
—Tel Aviv, Israel. Underwriter — Rassco Israel Corp.,
Israel-Rassco
&
Gulf Oil
Marine
Feb.
Underwriter—Kamen
Sept. 28 filed 9,000 ordinary shares.
Guaranty Income Life Insurance Co.
Dec.
400,000 shares of common stock (par 10
Price—$1 per share. Proceeds—To finance ex¬
"Isras"
1,279 shares of common
(no par) to be offered to present stockholders and
employees. Price—$22 per share. Proceeds—To increase
working capital. Office — Jordan & Union Sts., Allentown, Pa. Underwriter—None.
(letter of notification)
.stock
■
filed
N. Y.
& Sons, Inc., Allentown, Pa.
(L. F.)
4
cents).
Luck Glove Co.,
Good
Jan. 27
International Metals Corp.
Oct.
(jointly); W. C. Langley & Co. and The First Boston
(jointly); Lehman Brothers; Blyth & Co, Inc.
be received up to 11.30 a.m. (EST) on March 20.
Corp.
Bids—To
York, N. Y.
expenses.
Office—42
Broadway,
Underwriter—G. F. Rothschild & Co..
address.
Insulated Circuits,
Inc., Belleville, N. J.
Nov. 10 filed 100,000 shares of 6%
convertible preferred
stock (cumulative if and to the extent
earned). Price—
At par ($5 per share).
purposes.
Underwriter
New York.
Proceeds—For general corporate
Alexander Watt & Co., Inc.,
—
Lawyers Mortgage & Title Co.
Jan. 11 (letter of notification) 60,412 shares of common
stock (par 65 cents) to be offered first to stockholders.
Maxwell M. Powell (Vice-President) and Rudolph J.
Welti (a director) will purchase up to a total of 10,000
shares each of any unsubscribed shares. Price—$1.50 per
share. Proceeds
For working capital.
Office — 115
Broadway, New York, N. Y. Underwriter—None.
—
Lisbon Uranium Corp.
Dec. 26 filed 1,306,209 shares of common stock (par 150)
to be offered
subscription by common stockholders
of record Jan.
27, 1956, at the rate of three new shares
(with an additional subscription
privilege). Price—$4 per share. Proceeds—To repay ad¬
vances by Atlas
Corp. of approximately $4,039,000, which
has or will be used to acquire option to purchase the
so-called Barrett claims and pay balance of purchase
price; for exploration and drilling expenses, and for
other corporate purposes.
Office—405 South Main St,
Salt Lake City, Utah. Underwriter—None, but Wasatch
Corp, a subsidiary of Atlas Corp, will purchase any
for each ten shares held
unsubscribed shares.
L-O-F Glass Fibers Co., Toledo, O.
(3/1)
mon
Vernon Mining & Development Co.
(letter of notification) 300,000 shares of com¬
stock.
Price—At par ($1 per share).: Proceeds—
16
For-
mining expenses.
Office—422 Continental Bank
Bldg,, Salt Lake City, Utah. Underwriter
Ackerson—
Hackett
same
Investment
* Murdock
National
Lithium Corp., Denver, Colo.
(letter of notification) 300,000 shares of common
stock (par one cent).
Price—$1 per share. Proceeds
For mining expenses.
Office — 556 Denver Club
Bldg,
Denver, Colo. Underwriter — Investment Service Co
same city.
National Old Line Insurance Co.
15
filed
and
of record Feb. 29, 1956, at the rate of one new share for
each 10 shares held. Price—$12 per share; rights to ex¬
(par $2).
about March 26, 1956. Proceeds—For capital
improvements; additional equipment, and working capi¬
tal.
Underwriter—None.
•
Long Island Arena,
Inc.
(2/27-3/2)
Bldg..
Dec. 27
$2)
on or
Bank
Acceptance Corp., Memphis, Tenn.
(par
pire
Continental
—Equitable Securities Corp, Nashville, Tenn, and Bullington-Schas & Co, Memphis, Tenn.
Offering —Ex¬
pected in three weeks.
;
filed 251,405
701
Feb. 15 filed 50,000 shares of
capital stock (par $5). Price
—To be supplied by amendment.
Proceeds—For work¬
ing capital and general corporate purposes. Underwriters
Nov.
10
Co,
city.
shares of common stock (par $5)
to be offered for subscription by common stockholders
Feb.
50,000 shares of class
50,000 shares of class
Price—To
A
common
stock
B
common
stock
be
supplied by amendment. Pro¬
ceeds
To selling stockholders.
Office
Little Rock
Ark.
Underwriter—Equitable Securities Corp, Nash¬
ville, Tenn, and New York, N. Y.
Offering—Indefinitely
postponed.
|
—
—
•
Nevada Natural Gas Pipe Line Co.
(2/27)
shares of common stock (par 10
cents). Price—$1.50 per share. Proceeds—For construc¬
tion of arena. Office—Commack, L. I., N. Y. Underwriter
Jan.
30
fund
debentures due
—Dunne &
of debentures and four shares of stock.
Price—$50.50 per
unit. Proceeds—To repay bank loans and for
Jan.
25
Lost
filed
525,000
Co, New York.
Canyon Uranium & Oil Co.
Oct. 6
(letter of notification) 3,000,000 shares Of non¬
assessable capital stock (par one cent). Price—10 cents
per share.
Proceeds—For expenses incident to mining
operations. Office — Simms Bldg, Albuquerque, N. M.
Underwriter—Mid-America Securities Inc. of Utah, Salt
Louisiana Power &
filed
of common
Light Co.
(3/20)
shares of cumulative preferred stock
Proceeds—For property additions and im¬
Feb. 9 filed 70,000
provements. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Kidder, Peabody &
Co. and Merrill Lynch, Pierce, Fenner & Beane (jointly)!;
Equitable Securities Corp.
and Union Securities Corp.
$1,000,000 of 5V2%
stock
subordinated sinking
1, 1976, and 160,000 shares
to be offered in units of $25
March
(par $1)
new
struction.
con¬
Office—Las
California Co, San
Vegas, Nev. Underwriter—First
Francisco, Calif.
New Britain Gas Light Co., New
Britain, Conn.
10 (letter of notification) 8,326 shares of
common
stock (par $25) to be offered for
Feb.
subscription by
stockholders
Lake City, Utah.
(par $100).
International Basic Metals, Inc.
Jan. 27 (letter of
notification) 1,000,000 shares of com¬
mon stock
(par 10 cents). Price — 25 cents per share.
Proceeds—For mining expenses. Office—155 West South
for
Mt.
Nov.
on
a
l-for-9 basis.
Price
common
$29 per share.
Proceeds—For financing future plant additions. Office—
35 Court St, New Britain, Conn.
Underwriter—None.
New South Textile
—
Mills, Jackson, Miss.
Jan. 13 filed 2,298,000 shares of common stock
Price—$3
erties
per
and
share.
general
To be named
(par $1).
Proceeds—For acquisition of
prop¬
corporate purposes.
Underwriter
by amendment.
»
-
Volume 183
Number 5510.
.
The Commercial and Financial Chronicle
.
Nicholson
(W. H.) & Co., Wilkes-Barre, Pa.
20,000 shares of common stock (par $5).
Price—$25 per share. Proceeds — For working capital.
Underwriter—None. A. E. Nicholson Jr. of Kingston, Pa.
-
Jan.
16
filed
is President.
Contracting Corp.
Jan. 19 (letter of notification) 300,000 shares of common
stock (par 10 cents). Price—$1 per share.
Proceeds—
For expenses incidental in general contracting and con¬
struction business.
Office—9480 New Fort Koad, Fort
Washington, Md. Underwriter — The Matthew Corp.,
Washington, D. C.
North
Pittsburgh Telephone Co., Gibsonia, Pa.
(letter of notification) 4,000 shares of common
be offered for subscription by stockholders.
6
stock
$102 per unit. Proceeds—For machinery and equipment.
Office—555 West 23rd St., New York
11, N. Y. Under¬
writer—John R. Boland &
Co., Inc., New York.
to
Price—At par ($25 per share).
* Play Investors Corp., New York
Proceeds—To be used to
Office—Gibsonia,
Underwriter—None.
stcok
Allegheny County, Pa.
Northern States Power Co.
(2/29)
(Minn.)
Jan. 20 filed 100,000 shares of cumulative preferred stock
Proceeds
To repay bank loans and for
program. .Underwriter—To be determined
by competitive bidding. Probable bidders: Blyth & Co.,
Inc. and The First Boston Corp. (jointly); Lehman Bro¬
thers and Riter & Co. (jointly); Merrill Lynch, Pierce,
—
construction
Fenner & Beane; Harriman Ripley & Co. Inc. and Union
Securities Corp. (jointly). Bids—Tentatively expected
to be received
to 11 a.m. (CST)
Feb. 29 at Room
1100, 231 So. La Salle St., Chicago 4, 111.
Northern
Jan.
to
of
up
States
Power
Co.
2jp filed 670,920 shares of
on
(Minn.)
common
(2/29)
stock (par $5)
be offered for subscription by common stockholders
record March 1 at the rate of one new share for
each
shares
20
held;
rights
to
expire
March 20.
Proceeds
To repay bank loans and for construction
program.
Underwriter—To be determined by competi¬
tive bidding. Probable bidders: The First Boston Corp.,
Blyth & Co., Inc. and Kuhn, Loeb & Co. (jointly); Leh¬
on
—
Brothers and Riter & Co.
man
(jointly); Smith/Barney
and Glore, Forgan & Co.
&
Co.; White, Weld & Co.
(jointly). Bids—Tentatively expected to be received up
to 10 a.m. (CST) on Feb. 29 at Room
1100, 231 So. La
Salle St., Chicago 4, 111.
Oak Mineral & Oil Corp.,
rarmington, N. M.
Nov. 8 (letter of notification) 2,000,000 shares of common
stock (par five cents). Price—15 cents per share. Pro¬
ceeds—For exploration and development and other gen¬
eral corporate purposes. Underwriter—Philip Gordon &
Co., New York.
298,479 shares of common stock (par $10)
to be offered for subscription by common stockholders
10
March 8 at
a
rate
of
one
new
share for each
shares
held; rights to expire on March 27.
Unsub¬
scribed shares (up to 15,000) may be offered to employ¬
ees.
Price—To be supplied by amendment.
Proceeds—
For construction program.
Underwriter—Merrill Lynch,
Pierce, Fenner & Beane, New York.
•
Pacific Coast
Aggregates, Inc. (3/6)
450,000 shares of common stock (par $5).
Price
To be supplied by amendment. Proceeds — To¬
gether with other funds, to purchase assets of Santa Cruz
Feb.
10 filed
—
Portland
Price—$1
per
Cement
Co.;
for capital improvements, and
working capital. Underwriters — Blyth & Co., Inc., and
Schwabacher & Co., both of San Francisco, Calif.
^
cal
16, N. Y.
Uranium & Oil Corp.
Oct. 17 (letter of notification)
stock
mon
Proceeds
(par five cents).
3,000,000 shares of com¬
Price—10 cents per share.
For mining expenses.
Office — Newhouse
Bldg., Salt Lake City, Utah. Underwriter — Western
States Investment Co., Tulsa, Okla.
—
Parker Petroleum
Co., Inc., Ponca City, Okla.
(3/15-16)
non-voting stock.
Price — At
Proceeds — For working capital.
share).
Paramount Bldg.,
Amarillo, Tex.
J*rtidential Loan Corp.,
par
($50
preferred stock (par $10) and 150,000 shares of common
stock (par 10 cents). Price—To be supplied by amend¬
ment.
Proceeds
To repay loans, etc.; for exploration
and development costs and for working capital. Business
•—A crude oil and natural gas producing company. Un¬
derwriter—D. A. Lomasney & Co., New York.
Feb. 10 (letter of
stock
(par
notification) 200,000 shares of
1 cent).
Price—$1.50
per
share.
common
Proceeds—
purchase of building and machinery and for work¬
ing capital. Office—1150 Broadway, Hewlett, L. I., N. Y.
Underwriter—Golden-Dersch & Co., New York.
tIt Perspective, Inc., Seattle, Wash.
notification) an undetermined number
Feb. 10 (letter of
ceeds— For
American
•
general
Price—$1
corporate
Bldg., Seattle, Wash.
per
purposes.
share.
Office
Pro¬
—
402
Underwriter—None.
Piasecki Aircraft
Corp. (3/5-9)
200,000 shares of common stock (par $1)
(statement to be amended—company to issue convertible
debentures instead of stock). Price—To be supplied by
amendment. Proceeds—To repay outstanding notes and
for working capital.
Office—Philadelphia, Pa. Under¬
writer—Emanuel Deetjen & Co., New York
Jan.
17
filed
Pipelife Corp., Tulsa, Okla.
Nov. 29 filed 115,000 shares of common stock (par $1).
Price—$4 per share. Proceeds—To pay current accounts
and
notes
payable; for research and development; and
general
corporate
American Securities
purposes.
Underwriter
—
Feb.
10
debentures,
due
April
1,
1966,
and
shares of
common
units of
$100 debenture and 10 shares of stock.
a
stock
30,000
(par 10 cents) to be offered in
Price—
on
rights to expire
about March 21.
or
porate purposes.
stock
(par $10)
on
Price—To be
April 4.
Proceeds—For general cor¬
Underwriter—W. E. Hutton & Co., Cin¬
Royal Oil & Gas Co., Denver, Colo.
(letter of notification) 5,978,000 shares of
Washington, D. C.
preferred stock (par $5) and 55,500
mon
stock
common
to
be
offered
in
sfiares
units
of
one
share
stock
(par
com¬
Price—Five cents per share.
Proceeds—For expenses incident to oil and gas produc¬
of 10-cent par
of
cent).
one
preferred stock and one-half share of common stock.
Price—$6.75 per unit. Proceeds—For general corporate
purposes. Underwriter — Straus, Blosser & McDowell.
tion. Office—534 Commonwealth Building, Denver, Colo.
Underwriter—Columbia Securities Co., Denver, Colo.
Chicago, 111.•.;;••••
Jan. 30 filed 151,050 shares of common stock (par $5)»
Price — To be supplied by amendment. Proceeds—Tc
•
★ R. and P. Minerals, Inc., Reno, Nev.
.
For mining expenses.
Office—573 Mill St., Reno, Nev.
Underwriter—Utility Investments, Inc., Reno, Nev.
•
Redlands
23
filed
cents).
bank
Casting, Inc., St. Louis (2/2S)
shares of common stock (par five
$6.10 per share. Proceeds — To reduce
Price
loans.
—
Underwriter—A.
'T.'.V
G.
Edwards
&
Sons, St.
V. V
San Juan Racing Association, lnc.v Puerto Rlea,
Sept. 27 filed 4,000,000 shares of common stock (par 50
cents), of which 3,800,000 will be represented by 3,000,006
voting trust certificates and 800,000 warrants. These of¬
ferings are to be made in two parts: (1) an offering, sfe60 cents per share, of 200,000 shares for subscription by
stockholders of record April 30, 1955, on a two-for-ona.
basis; and (2) a public offering of 3,000,000 shares, to be
represented by voting trust certificates, at 58.8235 cent*
per share. Proceeds—For racing plant construction. Un¬
derwriter—None. Hyman N. Glickstein, of New York
City, is Vice-President.
Oil
Co., Ltd.
$1,000,000 of partnership interests to be
minimum amounts of $25,000.
Proceeds—To
acquire leases for drilling for oil and gas and for devel¬
opment costs. Underwriter — Name to be supplied by
;
:
v
Steel
Louis, Mo.
in
amendment.
'
v
Jan. 25 filed 280,000
Radiation, Inc., Melbourne, Fla.
Jan. 13 filed 150,000 shares of class A common stock
(par 25 cents). Price—$5 per share. Proceeds—To retire
unsecured notes; to expand facilities; for
working capi¬
tal, etc. Underwriter—Johnson, Lane, Space & Co.. Inc.,
Savannah, Ga. Offering—Expected today (Feb. 23).
Jan.
Louis
St.
-
•
offered
Ryder System, Inc., Miami, Fla.
help finance purchase »of five other truck lines. Under¬
writer—Blyth & Co., Inc., New York. Offering — Post¬
poned indefinitely.
Feb. 14 (letter of notification) 500,000 shares of common
stock.
Price—At par (10 cents per share).
Proceeds—
it Regan Bros. Co., Minneapolis, Minn.
Feb. 17 filed $500,000 of 6% sinking fund first mortgage
bonds due 1976.
Price—100% of principal amount.
Pro¬
Saratoga Plastics, Inc.
20 (letter of notification) 100,000 shares of com¬
mon stock (par $1).
Price—$1.75 per share. Proceeds—
To strengthen the over-all financial structure of the
ceeds—To
purchase 36,128 shares of capital stock at a
price of $10 per share from stockholders retiring from
the company, and for working capital.
Business—Manu¬
Jan.
Under¬
Office—North Walpole, N. H.
company.
Underwriter—
First New Hampshire Corp., Concord, N. H.
Reno
Hacienda, Inc., Inglewood, Calif.
4,000,000 shares of common stock. Price—
($1 per share). Proceeds—To purchase real prop¬
erty, for construction of buildings and other facilities
and for general corporate purposes. Underwriter—Wil¬
son & Bayley Investment Co.
;
Sayre & Fisher Brick Co.
Sept. 30 filed 325,000 shares Of capital stock
Dec. 19 filed
At par
Price—To be supplied by amendment.
(par $1).
Proceeds — For
prepayment of outstanding 5 ¥2% sinking fund bonds due
1970; balance for general corporate purposes, including
additions and improvements and working capital. Under¬
writer — Barrett Herrick & Co., Inc., New York City.
Republic Benefit Insurance Co., Tucson, Ariz.
Sept. 30 filed 150,000 units in a dividend trust and stock
Seaboard
Drug Co., Inc.
procurement agreement to be offered to certain mem¬
bers of the general public who are acceptable applicants
Jan. 19 (letter of notification) 300,000 shares of Class A
stock (par 10 cents).
Price—$1 per share. Proceeds—
and who
For
are
to become active policyholders in the com¬
Price—$2
pany.
unit.
per
Proceeds—For general
cor¬
porate purposes.
Underwriter—None; to be offered by
Leo Rich, Robert Kissel and Sidney M. Gilberg, as Trurtees.
/•
V.
•
•
Reynolds Minerals Corp., Denver, Colo.
(letter of notification) 40,000 shares of common
stock (par $1). Price — $6 per share. Proceeds — For
mining expenses. Office—822 First National Bank Bldg.,
Denver 2,
Colo. Underwriter—Luckhurst & Co., Inc.,
Jan. 30
New York.
Reynolds Mining & Development Corp.
22 filed 1,500,000 shares of common stock
(par
cent).
Price—50 cents per share. Proceeds—For
working capital and mining expenses. Office — Moab,
Utah. Underwriter
The Matthew Corp., Washington,
one
—
D. C.
Riddle
Dec.
20
Airlines,
filed
967,500
Inc., Miami,
shares of
Fla. ;
common
stock
(par 10
«
purchase of Mericin, Calona and Avatrol; market
testing of Homatrone; and for working capital. Office—
21 West 45th St., New York, N. Y. Underwriter—FosterMann, Inc., New York City.
*
; :
.
Shangrila Uranium Corp.
Dec. 30 (letter of notification) 300,000 shares of com¬
mon stock.
Price—At par ($1 per share).
Proceeds—
For mining expenses. Underwriter—Western States In¬
vestment Co.,
Tulsa, Okla.
Underwriter—Valley State Brokerage, Inc., 2520
South State St., Salt Lake City, Utah.
Wyo.
•
Slick Airways,
Inc.,
Burbank, Calif.
(2/28)
Jan. 31 filed
422,992 shares of common stock (no par) to
be offered for subscription by stockholders at the rate
of
one
shafe for each share held of record Feb. 254,
new
1956; rights to expire on March 13. Price—To be supplied
by amendment. Proceeds — To repay certain indebted¬
ness; to purchase additional equipment and facilities;
and for working capital.
Underwriter — Auchincloss,
Parker &
Redpath, Washington, D. C., and New York.
South States Oil & Gas Co.
filed
(with an oversubscription privilege). [The company hai
obtained from certain stockholders waivers of subscrip¬
Feb.
rights applicable to not less than 100,000 shares and
are to be offered to the general public free
of the stockholders' prior rights.]
Price—To be sup¬
plied by amendment. Proceeds—To repay bank loan
and for working capital.
Underwriter—Eisele & King,
Libaire, Stout & Co., New York.
in part payment for acquisition of property; for acqui¬
sition of further oil and gas leasehold interests; for de¬
tion
such shares
Riegel Paper Corp., New York (3/1)
9 filed $6,000,000 of sinking fund debentures due
1981. Price—To be supplied by amendment. Proceeds—
For expansion and equipment.
Underwriter — Morgan
Stanley & Co., New York.
Feb.
Riegel Paper Corp., New York (3/1)
9 filed 194,155 shares of common stock (par $10)
to be offered for subscription by common stockholders
of record Feb. 29, 1956, at the rate of one new share for
each five shares held; rights to expire on March 14.
Price
To be supplied by amendment. Proceeds — For
expansion and equipment. Underwriter—Morgan Stan¬
ley & Co., New York.
"Feb.
—
Finance Co.,
Inc. (2/27-3/2)
5%% subordinated sinking fund
125,000 shares of class B (non¬
voting) common stock (par $1). Price—To be supplied
by amendment. Proceeds — To make loans and reduce
bank debt.
Office—Wyncote, Pa. Underwriter—Stroud
& Co., Inc., Philadelphia, Pa.
debentures due 1971 and
10-year 6%
(3/22)
common
Jan. 20
Ritter
(J. E.) Manufacturing Corp.
(letter of notification) $294,000 of
convertible
shares held;
Nov. 22 filed 111,000 shares of 44-cent cumulative
prior
Feb. 6 filed $900,000 of
Plastics
69,670 shares of
cinnati, O.
North
Co., Tulsa, Okla.
filed
16
fixed
Office-%227
cents) to be offered for subscription by stockholders al
the rate of one new share for each four shares held
For
of shares of common stock.
Feb.
Underwriter—None.
—
Inc.
(3/1)'
to be offered for subscription by stockholders of record
March 21, 1956 on the basis of one new share for each 10
per
Nov.
Feb. 20 filed 150,000 shares of 6% cumulative convertible
Perma Glass Fibre Fabrics
• Rotary Electric Steel Co.
Office—150 East 35th St., New York
Underwriter—None.
* Professional Acceptance Corp., Amarillo, Texas
Feb. 13 (letter of notification) 4,000 shares of series C
common
& Sons, Inc., Flushing, N. Y.
rowings from commercial factors and enable the com¬
pany to finance its own accounts; for working capital;
corporate purposes. Business—Manu¬
facturer of kosher food products, soaps and cleansers.
Underwriter—Jay W. Kaufmann & Co., New York.
or
allied enterprises.
(I.)
and other general
Proceeds—
Business—To invest in, fund, subscribe
otherwise partially participate in, theatri¬
and entertainment performances and associateed or
to, produce
...
Paria
share.
writer—M. H. Bishop & Co., Minneapolis, Minn.
(3/9)
15 filed
of record
10 cents).
factures and sells at wholesale bread products.
ir Oklahoma Gas & Electric Co.
Feb.
(par
For investment.
reduce the demand notes outstanding.
(par $100).
Rokeach
45
Jan. 27 filed 400,000 shares of common stock (par $1)J
Price — $3 per share. Proceeds — To eliminate bor¬
Feb. 16 (letter of notification)
230,000 shares of common
North American
Jan.
(981)
8
Price—$5
245,000 shares of common stock (par $1).
share. Proceeds—To pay for note issued
per
and drillings costs; and working capital.
Antonio, Tex. Underwriters —Dittmar &
velopment
Office —San
Co.; Russ & Co.; and Dewar, Robertson & Pancoast, all*
of San Antonio, Tex.
•
Southern
Indiana
Gas & Electric
Co.
Feb. 2 filed 83,030 shares of common
stock (no par) be¬
ing offered for subscription by common stockholders of
record Feb. 21, 1956 on the basis of one new share for
each 11 shares held; rights to expire on March 8. Price—
$28.50 per share. Proceeds—For repayment of bank loans
and for new construction. Underwriter—Smith, Barney
& Co., New York.
•
Southern
Oxygen Co., Bladensburg, Md.
$2,650,000 of 6% convertible subordinated
April 1, 1966, of which $1,400,000 prin¬
cipal amount are being offered in exchange for presently
outstanding 6% convertible subordinated debentures
due 1962, par for par; the offer to expire on March 16.
The old debentures have been called for redemption
Feb.
1
filed
debentures
due
March 31, 1956 at 100%% and accrued in¬
exchanges the one-half of 1% redemption
and payment
terest.
On
premium will be paid. Price—100% of principal amount.
Proceeds—To redeem old debentures, to purchase prop-
Continued,
on
page
46
46
The Commercial and Financial Chronicle
(982)
Continued from page
and working
& Co., Wash¬
erty and equipment for new construction
capital.
Underwriters—Johnson,
Lemon
ington, D. C., and Union Securities Corp., New York.
Southwest Manufacturing Co.
of Little Kock, Ark.
denominations
Thomas F. Neblett, Los
Price—To be 95% of
market
price or of the book value, whichever is
higher at date of sale.
The estimated or approximate
price will be $12.05 per share.
Proceeds—For working
capital. Underwriter—None.
Southwestern Public Service Co.
(2/29)
Feb. 3 filed $10,000,000 of
first mortgage bonds due 1981
and 120,000 shares of cumulative preferred stock (par
$25). Price—To be supplied by amendment. Proceeds—
To repay bank loans. Underwriter—Dillon, Read & Co.
Inc., New York.
Spokane Natural Gas Co.
share
separately transferable until
May 31, 1956. Price — To be supplied by amendment.
Proceeds—Together with funds from bank loan of $6,program.
Underwriter—White,
due
Spurr Mining Corp.
Nov. 9 (letter of notification) 300,000 shares of commonstock. Price—$1 per share.
Proceeds—For mining ex- >
penses.
Underwriter—Cavalier Securities (Co., Washing¬
ton, D. C.
Strategic Metals, Inc., Tungstonia, Nevada
Jan. 4 (letter of notification) 1,200,000 shares of
stock.
Price—25 cents per share.
incident to mining operations.
R. Reynolds & Co., Salt Lake City, Utah.
mon
expenses
Suburban Land
non-voting
notification)
(letter of
Price—At
1963.
15,
com¬
Proceeds—For
increase
To
Vesey St., New York,
fice—909
and
Co., Inc., Spokane, Wash.
N.
•
par
($2
share).
per
common
share
held.
Proceeds-—For construction and op¬
ef¬
(par $100).
;^ndsrToWai?
190,000 shares of
preferred
Price—To be supplied by amendment
5.50%
first
of Presently outstanding
preferred
stock.
writer—Dillon, Read & Co., Inc.,'New York.
Temporarily postponed.
Under¬
Offering—
tion
Underwriter
stock, which
—
To
be determined
construc¬
by competitive
bidding. Probable bidders: Halsey, Stuart & Co Inc *
The First Boston Corp.; Union Securities
Corp.; Kuhn
Loeb & Co., Lehman Brothers and
Blyth & Co., Inc!
(letter of
—
Pioneer
ir Willcox & Glbbs Sewing Machine Co.
underwriter.
mining
stockholders of record Feb. 27, 1956 on the basis of one
share for each 10 shares held; rights to expire on
new
March 23.
Wy-Cal
Dec.
21
filed
2,000,000
Price—25
shares
cents
of
stock
Lander,
Inc.,
2520'
stock.
Price—At par
1
'
1
'
'
'
1
'
•
Prospective Offerings
if Air-Vue Products Corp., Miami, Fla.
Feb.". 20 it was reported early registration
'
Proceeds
city.
«ame
£• d"
(five cents).
Office—45 East Broadway, Salt
City, Utah. Underwriter—Bel-Air Securities Corp.,-
is expected
of/150,000 shares of common stock. Price—Around $4.25/
p£r share. Proceeds — For expansion program. Under¬
writer—Arthur M. Krensky & Co., Inc., Chicago, 111.
•*'
if American Alloys Corp.,
Feb. 21
stockholders
were
Kansas City, Mo.
to vote to increase authorized
common stock from 600,000 shares (374,500 outstanding)
to 1,000,000 shares (par 250) and to create an authorized
issue of 200,000 shares of preferred stock (par $5). Pro¬
ceeds—From sale of any new securities to be used to in¬
crease plant capacity, retire debt and for working capital.
Underwriter—Previous financing was handled by S. D.
Fuller & Co., New York.
American
Jan.
30
it
Gas
was
&
Electric Co.
reported
company
plans to offer about
(par
competitive bidding. Probable bidders: The First Boston
Proceeds—To
Corp. and Union Securities Corp. (jointly); Blyth & Co.,
common
share.
Proceeds—
St..
$30,000,000 of common stock to its common stockholders
in June or July. Underwriter — To be determined by 1
Provo, Utah
per
Enterprises, Inc., Lander, Wyo«
273,000 shares of capital
of notification)
Qetter of notification) 6,000,000 shares off class
common
Lake
Industries, Inc., Evanston, III.
(letter of notification) 7,000 shares of common
one cent).
Price—$7 per share. Proceeds—
To selling stockholders.
Office — 2108 Jackson Ave.*.
Evanston, 111. Underwriter—Arthur M. Krensky & Co.,
Inc., Chicago, 111.
cents).
Uranium
(letter
—For mining expenses.
working capital. Under¬
writer—Blyth & Co., Inc., San Francisco and New York.
Nov.
St., New
Zenith-Utah Uranium Corp.
A
duce bank borrowings and for
five
6
S$pt. 14
•
Wagon Box Uranium Corp.,
West 39th
Underwriter—Valley State Brokerage,
South State St., Salt Lake City, Utah.
Rogers, Inc., Seattle, Wash. (3/6)
Feb. 14 filed 63,560 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—To re¬
(par
214
Wyo.
Office—310 First National Bank Bldg.,
Underwriter — Amos C. Sudler & Co.,
24
—
(par 50 cents). Price—$1 per share.
"'ori mining operations.
Office—268 Main
are
Vance
share. Proceeds—For general
stock
Van Waters &
Jan.
per
Office
Underwriter—None.
York.
com¬
•
Price—$7.15
corporate purposes.
expenses.
Denver, Colo.
same city.
(3/1)
(letter of notification) 22,000 shares of common
stock (par $5) to be offered for subscription by common
Invest¬
Corp., Denver, Colo.
notification) 200,000 shares of
Underwriter—Empire Securities
City, Utah.
Feb. 16
covered by an option held by the
Price—10 cents per share.
Proceeds—For
,
stock
Texas Electric Service Co.
(2/28)
Jan. 27 filed $10,000,000 of first
mortgage bonds due 1986
Proceeds—To repay bank loans and for
new
Uranium
30
•
Eastern Transmission
Corp.
filed 200,000 shares of
cumulative
30
Salt Lake
Inc., Spckane, Wash.
Feb. 13 (letter of notification) 1,000,000 shares of com¬
mon capital stock
(par 10 cents).
Price — 25 cents per
share.
Proceeds
For mining expenses.
Office — 1825
E. Sprague Ave., Spokane, Wash.
Underwriter—None.
mon
fective Feb. 15.
stock
tal stock.
(par 10
Utco
—
Underwriter—None.
if White Sage Uranium Corp.
it Utalrrcan,
(par 100).
drilling test costs,
Nov.
Lake
Jan.
Jaquith, Inc., Denver, Colo. Statement
City, Mo.
Feb. 13
cents). Price—40 cents per share.
Pro¬
mining expenses. Office—300 Fremont St.,
Suite 108, Las Vegas, Nev.
Underwriter—None.
Drilling Co., Inc., Billings, Mont.
of notes and accounts payable and loans and
general working capital.
Underwriter
Carroll
share). Proceeds—For general cor-'
Office—13th and Burlington St., No.
per
purposes.
Kansas
ceeds—For
Dec. 12 filed 400,000 shares of common stock
Price
$1 per share.
Proceeds—For
Texas
porate
Corp., Salt Lake City, Utah.
stock
Road,
&
mately $12.871/£
Underwriter—Mickle &
if Uranium Exploration & Copper Co. of Nevada
Feb. 14 (letter of notification) 200,000 shares of capital
Secu¬
Kirchner
(par $1) to be offered under the employees' stock!
option plan.Price—At market (estimated at approxi¬
stock
—
Amityville, L. I., N. Y. Underwriter—All States
rities Dealers, Inc., New York.
for
Co., Houston, Texas
City, Utah.
Underwriter
ments, Salt Lake City, Utah.
if Telechrome Manufacturing Co.
Feb. 15 (letter of
notification) 99,800 shares of class A
common stock
(par 10 cents). Price—$3 per share. Pro¬
ceeds—For expansion and
working capital. Business
Merrick
*' o
*
-
•
if Whitaker Cable Corp., No. Kansas City, Mo. .
■;
Feft!rl3 (letter of notification) 23,300 shares of common
(letter of notification) 15,000,000 shares of capi¬
Price—At par (one cent per share).
Proceeds
—For mining expenses.
Office—547 East 21st South St.,.
Salt
a
payment
■
Co., 90 Wall St., New York,
it Uranium Exploration Co., Salt Lake City, Utah
Feb. 13 (letter of notification) 77,875 shares of common
stock (par 25 cents).
Price—$1 per share.
Proceeds—
For mining expenses.
Office—538 East 21st South St.,
fourth radio station; and for general
corporate purposes.
Underwriter—Joseph Mandell Co.,
48 Hudson Ave.,
Waldwick, N. J.
Tenison
51
York
—
Urania, Inc., Las Vegas, Nev.
20 (letter of notification) 50,000 shares of capital f
stock. Price—At par ($1 per share). Proceeds—For ex¬
penses incident to mining operations. Office—1802 South
Main St., Las Vegas, Nev. Underwriter—Fenner-Streitman & Co., New York
City.
—For conversion of station "WARE" to full-time broad¬
•
if Western Securities Corp. of New Mexico
(letter of notification) 50,000 shares of common
stock,. Price—At par ($1 per share).
Proceeds—To start'
a dealer or brokerage business.
Office—921 Sims Bld£.,
Albuquerque, N. M.
Underwriter—None.
Febr£l3
Jan.
(letter of notification) 200,000 shares of common
(par five cents). Price—$1.50 per share. Proceeds
East
Western Greyhcund
and^ther general corporate purposes. Office—Phoenix,
Arizf Underwriter—M. J. Reiter Co., New York.
—
Jan. 11
84
,
Montgomery Ave., Philadelphia, Pa. Underwriter—Co¬
135 Broadway, New York.
Tele-Broadcasters, Inc., New York
—
and from
Racing, Inc. (3/19-23)
1,950,000 shares of common stock (par one;
cent), of which 1,800,000 shares are to be offered pub¬
licly. Price—$1.25 per share. Proceeds—To purchase as-.
setS~of Arizona Kennel Club, and for working capital^
lumbia Securities Corp.,
Corp., Norman, Okla.
200,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—For
working capital, drilling and completion of additional
wells, possible acquisition of interests in additional oil
and gas leases and exploration for oil and
gas.
Under¬
writer—Hayden, Stone & Co., New York.
Office
companies and banks
Automatic Machinery & Chemical Corp.
(letter of notification) 300,000 shares of class A
common stock (par 10 cents).
Price—$1 per share. Pro¬
ceeds
For general corporate purposes.
Office—8620
Petroleum
apparatus.
•
U. S.
filed
Electronic
Oil
an
DecT 19 filed
Nov. 4
Bldg., Denver, Colo. Underwriter—Securities, Inc., P. O
Box 127, Arvada, Colo.
casting; to buy
of Texas
insurance
additional
3,271,000 shares of stock to WestCo., to be used to construct a pipe-line;
system. Office—Calgary, Alta., Canada.. Underwriter—'
Eastman, Dillon & Co., New York.
1
Building, Houston, Tex.
Co., Houston, Texas.
-
Superior Uranium Co., Denver, Colo.
(letter of notification) 29,600,000 shares of com¬
stock.
Price—At par (one cent per share).
Pro¬
ceeds—For mining operations.
Office—608 California
stock
Securities
Y.
Jacinto
Price—At
mon
1
working capital. Office
N. Y. Underwriter—New
from
Co., Ltd.
coast Investment
(letter of notification) 240,000 shares of common
stock (par 10 cents). Price—$1.25 per share. Proceeds—
For expenses incident to oil production.
Office — San
Nov. 9
Taylor
ceived
sale of
Jan. 19
eration of sulphur extraction plant.
Underwriter—To
be named by amendment. Statement to be withdrawn.
Feb.
American
Union
Sulphur Exploration Co., Houston, Texas
21 filed 600,000 shares of 6%
convertible noncumulative preferred stock to be offered for
subscrip¬
tion by common stockholders on the basis of one
pre¬
Nov.
each
pay¬
—
—
-
(3/5-9);
V
Jarir26 filed $20,500,000 (U.S.) 32-year subordinate de-!
bentures, due Feb. 1, 1988, and 615,000 shares of capital
stock (no par) to be offered in units of $100 of deben-"1
tures and three shares of stock. Price—To be supplied
by Amendment. Proceeds—Together with funds to be re-;
Jan.
Proceeds
;
'
Westcoast Transmission
shares of 6%%
participating convertible preferred stock (par $10) and
2,950 shares of common stock (par one cent) to be
offered in units of 10 shares of preferred stock and
one share of common stock.
Price
$100.01 per unit.
preferred
for
N. J,. Underwriter—None. "
Underwriters Factors Corp.
7
(letter of notification) 29,500
common
Guaranty Co.
ingepreferred stock on a 2-for-l basis; any shares re-"
majning will be offered to common stockholders. Price—"
$25-per share. Office—Third and Market Sts., Camden,
Dec.
improvements and working capital. Of¬
West Sprague Ave.,
Spokane, Wash. Under¬
share
Proceeds—For
on*
Pro-'
(letter of notification) 10,000 shares of common:
stock .(par $10) of which 8,000 shares are first to be;
offered for a period of 30 days in exchange for outstand-
Tunacraft, Inc., Kansas City, Mo.
17 (letter of notification) $250,000 of 6% 12-year
registered subordinated sinking fund debenture note9
Proceeds—For
ferred
West Jersey Title &
Jan.
Underwriter—
Developers, Inc., Spokane, Wash.
writer—W. T. Anderson &
par.
expire
to
Jan.^23
(par $100); and $75,000 of 6% construction notes
Dec.
rights
Co.^JWashington, D. C.
shares of common
800
eight shares held;
Price—To be supplied by amendment.
ceeds —For construction program.
Underwriters — The
Firif Boston Corp., New York, and Johnston, Lemon &»
1, 1968. Price—At par. Proceeds—To reduce
outstanding secured obligations. Underwriter—McDon¬
ald, Evans & Co., Kansas City, Mo.
stock ($100 per share) and
stock (par $10). Price—Of pre¬
ferred, $100 per share; and of common, $15 per share.
2,160 shares of
March 20.
ing notes payable and accounts payable and operating
capital.
Underwriters—FairOffice—Trinidad, Colo.
man, Harris & Co., Inc., Chicago, 111.
due
Feb. 2 (letter of notification) 920 shares of 6% cumula¬
tive
14
to be offered for subscription by common:
shafe^for each
Trinidad Brick & Tile Co.
stock
(3/5)
minimum of 148,917 shares of common"
a
stockholders of record March 2, 1956, at rate of one new"
Trane
Dec.
,15 filed
stoqjf (no par)
if Tremont Motel Corp.
(letter of notification) 80,000 shares of common
stock (par 10 cents).
Price—$2.50 per share. Proceeds
—For purchase of property and construction of addi¬
tional motor courts; and for working capital.
Office—
744 Broad St., Newark, N. J. Underwriter—Berry & Co.,
Plainfield, N. J.
of stock which will not be
275,000, for construction
Weld & Co., New York.
if Washington Gas Light Co.
Feb.
Feb. 16
(2/28)
one
Philadelphia, Pa.
<
capital expenditures and general corporate purposes.
Underwriter—Smith, Barney & Co., New York. ;
Feb. 2 filed $3,505,000 of subordinate interim notes due
Jan. 31, 1982 and 70,100 shares of common stock (par
$1) to be offered in units of $50 of notes and
Angeles, Calif.
preferred stock; to repay bank loans of $40,000; and^construction program. Office—75 Orange Avenue,:
Watden, N. Y. Underwriter—Blair & Co., Incorporated,
Co., LaCrosse, Wis. (2/24)
Feb. 8 filed 120,000 shares of common stock (par $2).
Price—To be supplied by amendment.
Proceeds—For
*
Telephone Co., Walden, N. Y.
(letter of notification) 1,500 snares of cumulative
for
.
•
Walden
preferred stock, series B (par $50). Price—To be sup¬
plied by amendment. Proceeds—To redeem $19,000 5V2%:
Mines Ltd., Toronto, Canada
Feb. 9 filed 200,000 shares of common stock (par $1) to
be offered publicly to residents of the United States.
Price —50 cents per share. Proceeds —For exploration •
and development costs.
Underwriter—Harold W. Lara,
241 Sanford St., Rochester, N. Y.
- >//•
r
if Southwestern Investment Co., Amarillo, Texas
(letter of notification) 10,000 shares of common
the
N. Y.
Tomrock Copper
Feb. 13
offered to employees.
•
Feb. 1
(letter of notification) 99,990 shares of common
stock (par $1).
Price — $3 per share. Proceeds—For
working capital and general corporate purposes. Office
—Meadows
Building, Dallas, Texas.
Underwriter —
derwriters—Hill, Crawford & Lanford, Inc., and South¬
ern Securities Corp., both of Little Rock, Ark.
stock to be
Honolulu, Hawaii.
Jan. 20
of $1,000 each); and of stock, $5 per share. Proceeds—
For expansion program. Office—Little Rock, Ark. Un¬
working capital and other corporate purposes.'
P.
Investment Co., Provo, Utah and
Underwriter—H.
Corp., Dallas, Texas
Tex-Star Oil & Gas
Jan. 17 (letter of notification) $100,000 of 6% convertible
debentures due 1965 and 20,000 shares of common stock
(par $1). Price—Of debentures, at par (in
2033, Two Rector St., New York 6,
at Room
for
and
(jointly); Hemphill, Noyes & Co. and Drexel & Co.
(jointly); Kidder, Peabody & Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Harriman Ripley &
Co. Inc. and Stone & Webster Securities Corp. (jointlyV.
Bids—To be received up to 11:30 a.m. (EST) on Feb. 28
45
.Thursday, February 23, 1956
..
explore and acquire claims, for purchase of equipment
Inc.-
Volume 183
Number 5510
...
47
(983)
The Commercial and Financial Chronicle
(3/29)
Georgia Power Co.
issue and sell
Proceeds—For con¬
struction program.
Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Morgan, Stanley & Co.; The First Boston Corp.;
Jan. 23 it
announced company plans to
was
$12,000,000 of first mortgage bonds.
Shields
Co.
&
(jointly);
Salomon Bros. & Hutzler
and
Ripley & Co. Inc.; Lehman Brothers; Blyth &
Harriman
Co., Inc. and Kidder, Peabody & Co. (jointly); Union
Equitable Securities Corp. (jointly).
Bids—Expected to be received on March 29. Registra¬
Securities Corp. and
tion—Planned for March 2.
Gulf States Utilities Co.
May 16 it was reported company may issue and sell
$10,000,000 first mortgage bonds if market conditions
permit. Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Lehman Brothers;
Merrill Lynch, Pierce, Fenner &
Beane and White, Weld & Co. (jointly); Salomon Bros.
& Hutzler and Union Securities Corp. (jointly); Kuhn,
C. Allyn & Co., Inc.
and A.
Co.
Loeb &
(jointly); Lee
Higginson Corp. and Carl M. Loeb, Rhoades & Co.
(joint"
ly); Stone & Webster Securities Corp.
& Paper Corp.
Hudson Pulp
it
Nov. 28
reported company may do
was
Under¬
which, it is estimated, will cost about $25,000,000.
writer—Lee Higginson Corp., New York.
Illinois Central
will
Bids
public
some
connection with proposed newsprint mill,
financing in
(2/23)
RR.
received
be
the
by
company
to noon
up
Feb. 23 at 125 East 11th Place, Chicago 5, 111.,
purchase from it of $9,900,000 equipment trust
certificates, series 42, to be dated March 1, 1956 and,
mature in 30 equal semi-annual instalments. Probable
bidders: Halsey, Stuart & Co. Inc.; Salomon Bros. &
(CST)
on
the
for
Hutzler.
Inland Steel Co.
Nov.
3, Joseph L. Block, President, announced that a
portion of the required funds for the com¬
substantial
pany's expansion program (estimated to cost approxi¬
mately $260,000,000 for three-year period 1956-1958)
will be derived from retained earnings and depreciation
However, he stated, it will also be necessary
reserves.
to
It is
large portion through public financing.
secure a
quite likely that a major part will be in the form of debt
financing. No such financing is contemplated during the
current year, nor have the times or methods of financ¬
Underwriter
ing been definitely determined.
Loeb & Co., New York.
—
Kuhn,
Telephone & Telegraph Co. of
Fla.
reported company is considering to offer
Inter-County
Ft. Myers,
Jan. 16 it
was
publicly an issue of common stock.
tral Republic Co., Inc., Chicago, 111.
Underwriter—Cen¬
Jersey Central Power & Light Co.
6 it was reported company may in May or June
Feb.
first
sell, $9,000,000
issue; and
1956,
mortgage
bonds.
Underwriter—To be determined by competitive bidding*
*
bidders:
Probable
Halsey,
•
Stuart &
Co. Inc.; Lehman
Brothers; White, Weld & Co.; Kidder, Peabody & Co.;;
Union Securities Corp., Salomon Bros. & Hutzler and
Merrill
&
Co.
Lynch, Pierce, Fenner & Beane
Incorporated.
(jointly); Blair
City Power & Light Co. (4/16-20)
plans to issue and sell,
Kansas
Feb. 7 it was announced company
probably in mid-April, 120,000 shares of preferred stock
(par $100).
Proceeds—To retire short-term bank loans.
Underwriters—Blyth & Co., Inc., and The First Boston
Corp.
—
Kentucky Utilities Co.
was reported company plans to issue and sell
Jan. 25 it
$10,000,000 of first mortgage bonds some time in April.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; Blyth & Co.,
Corp,;
(joint¬
ly); Union Securities Corp. and Merrill Lynch, Pierce,
Inc.; Lee Higginson Corp.; Equitable Securities
Kidder, Peabody & Co. and White, Weld & Co.
Beane
&
Fenner
(jointly);
Baxter,
Williams
&
Co.;,
Kuhn, Loeb & Co.
Kimberly-Clark Corp., Neenah, Wis.
Nov. 22 it
was
announced that the company plans fur¬
ther financing, the nature
and extent of which has not
yet been determined, except it is not
tion to sell additional common stock.
the present inten¬
Proceeds—To be
further expansion, estimated to cost an
additional $37,000,000.
Underwriter—Blyth & Co., Inc.,%
used to pay for
New
York.
(3/14)
to offer to its
common stockholders of record March
16 the right to
subscribe on or before April 3 for 202,657 shares of
convertible preferred stock (par $25) on the basis of
one
preferred share for each 15 common shares held.
Underwriter—To be determined by competitive bidding.
Probable bidders may include Lehman Brothers; White,
Weld & Co.; Stone & Webster Securities Corp.; Blair &
Co. Incorporated and Drexel & Co. (jointly).
BidsExpected to be received about March 14.
Laclede
Jan.
it
30
Lone
St. Louis. Mo.
Gas Co.,
was
reported company plans
Star Steel
Co.
E. B. Germany, President, announced that the
company plans the private and public sale of new secu¬
rities during the first half of the current year. Proceeds
—To retire indebtedness of company held by the RFC
Jan. 24,
and the Treasury
Dallas
Rupe
&
Department.
Son;
Underwriters—Probably
& Co.; and Straus &
Estabrook
Blosser.
Maine Bonding &
Casualty Co.
plans to offer
3-for-7 basis an addi¬
Feb. 4 it was announced that the company
to
its common stockholders
tional 30,000
on
a
shares of common stock (par $10).
Continued
on
Underpage
48
48
(984)
The Commercial and Financial Chronicle
Continued
writer—To
from
be
17 will vote
47
page
selected.
bonds.
Meeting—Stockholders
on
Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Glore, Forgan & Co.i The First Boston Corp.; Blyth &
Co., Inc.
Feb.
increasing authorized common stock from
50,000 shares to 100,000 shares. Of the increased
stock,
20,000 shares are to be issued as a 40% stock dividend
on
Northern
Jan. 19 it
March 1 to stockholders of record Feb. 17.
on
States
was
Power
Co.
Seattle-First
Metropolitan Edison Co.
—To
(Minn.)
announced company plans to issue and sell
Corp.
Narragansett Electric Co.
Co.
if Natural
Feb. 20 it
Gas
Houston, Texas
President, announced
Bids
Expected to
—
be
received
by competitive
;
New England Electric System
Jan. 3 it
was
announced
3
it
was
announced
company
plans
to
merge
its
fcubsidiaries, Essex County Electric Co., Lowell
Electric
Light Corp., Lawrence Electric
Co., Haverhill Electric
Co. and
Amesbury Electric Light Co., into one
(jointly); Lehman Brothers;
Corp.; Equitable Securities Corp.; Mer¬
Pierce, Fenner & Beane, Kidder,
Peabody &
White, Weld & Co. (jointly).
was
was
Feb. 20 it
was
on
menced
14
it
was
about
St.
Feb. 2 it
tration
"i,v:
was
A. G. Becker &
when
the
rank
vestment market
ward to at least
could
a
so
pects
concerned
are
ocean
far
as
look
for¬
period of tran¬
quility in
the
file
and
Bids will
pros¬
events
across
turn up to ruffle
things
anew.
The
be
ments.
Wf
+
r
*
r
■+
% .
■#
*
->
be
'J
such
&
bidders:
reverberations1
rates
For
to
sterling,
was
curb
stiffen
to create
inflation
the pound
a
bit
If it did
chill
pressed,
may
later
this
year
was
a
been
moment,
at
any
rate,
to have cooled out
seem
and there
has been a bit of
irreg¬
ularity in the market for Treas¬
ury
■
loans
and
porate paper.
The
The
possi¬
was
Corp. (jointly);
Corp.; White, Weld & Co. and Shields
(jointly).
.
Feb. 6 i'j
gilt-edge
cor¬
Week
(jointly); Salomon Bros. & Hutzler; Stone & Webster
Corp.; White, Weld & Co.; Union Securities
Securities
Bids—To be opened
Several
medium-sized
on
Jan. 30 company
applied to the
mission for
authority to issue
rities, to consist
first mortgage bonds and
stock. Proceeds — To
$1.24
cumulative preferred
finance, in
part, construction program to cost about
$8,200,000. Un¬
derwriter—Probably Blyth & Co., Inc., San Francisco.
Wednesday
Power
Co.
Northern
of
Minn.,
States
opens
bids
for 100,000 shares of
preferred and
for "standby" rights
shares of common to
first
on
670,920
be
offered
plus
stock.
of
negotiation, along with
120,-
000 shares of preferred. On Thurs¬
r
to
market
200,000
Gas
shares
Tuesday,
bankers
will
Larger
Offerings
bonds.
*
Fruehauf Trailer v ::
tion
this
week
when
Trailer Co. filed
$47.5
to
million
of
tures.
Due
■
*"
^One otthe largest pieces of in3dustrial financing to take
shape in
recent months went into
registra¬
of
substantial
^
proportions.
Transmission
Co.,
West
Ltd.,
through its bankers will offer
publicly $20,500,000 of debentures
together with 615,000 shares of
$7
&
of
capital
Texas
*<*»»
new
Fruehauf
cover
new
a
total
deben¬
:
registration covers
$37.5
following week brings up
several undertakings of a bit more million, • of
convertible
subordi¬
Electric Service Co. will
open bids
for $10 million of bonds.
—.
Co. will look over ten¬
ders for its
projected $30 million
of
The
undertak¬
Kansas
debentures, and
following Houston Light
& Power
shareholders. Southwest¬
Public Service Co., the same
day will offer $10 million of bonds
via
for $35 million of
the day
to
ern
Coast
brings
common
Washington P. U. Com¬
$5,000,000 of new secu¬
of 33A%
ferred.
tap.
bonds
Sept. 25.
on
Telephone Co.
offer *90,000
shares of Consolidated Cigar
pre¬
Ahead
ings
Monday
(9/25)
announced company plans to issue
and sell
of
first
and
refunding mortgage bonds.
Underwriter—To be determined by
competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb
& Co., American Securities
Corp. and Wertheim & Co.
Inc.;
day
....
the new issue market this
week.
But the approaching period holds
promise of a bit-more activity!
million
Power Co.
was
holiday cut into activity in
are
&
Calif.
which» have
Electric,
nothing more, it served
hopes, recently ex¬
there
Co.
more
the
that
&
~
the
over
Nevertheless, the effect of the
boost in basic British
money rates,
by
the
government's
Stuart
marked up several times in recent
-
determination
Halsey,
months.
such ideas
it
West Coast
bility the Federal Reserve might
a slight lowering of redis¬
here.
tendencies and
company
—
Virginia Electric
received up
count
Co.
Corp.
permit
observa¬
15
The First Boston
sale
(2/29)
Salomon Bros. & Hutzler.
cautious air in domestic
monetary
and
early regis¬
exchange for
on a share-for-share
basis.
White, Weld & Co., and/or
Co., Inc.
Probable
is that the British
central bank's
is an outgrowth
of its own
isolated economic
situation and
that
accordingly, it is not likely to
have
any
to
■■73*' *7"
to noon (EST) on Feb. 29 at
Willkie, Owen, Farr, Gallagher &
Walton,
St., New York 5, N. Y., for the purchase from
the railroad
company of $6,555,000 equipment trust cer¬
tificates, series P, to mature in 15 equal annual instal¬
underwriting fraternity had circles.
just about reached the
conclusion
that it might expect some
slight
easing in basic money rates and
issue
the office of
prompted
monetary
reported
$20,000,000
Seaboard Air Line RR.
move
about convinced that the in¬
plans
company
announced that
company plans
stock to be offered in
Dealer-Manager—May
Consensus among observers
here
Just
reported
Rhinelander Paper Co. stock
-
were
was
tive
•
Coke Co.
of common
market, along with
issues, had com¬
reflect
it
program.
Regis Paper Co.
new
to
and
To repay bank loans and for
construction
Underwriter—To be determined
by competi¬
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Lehman Brothers and Bear, Stearns & Co.
(jointly);
Blyth & Co., Inc. and Union Securities
$7,500,000 of equipment
Halsey, Stuart & Co.
$16,500,000 first mortgage bonds.
Underwriter—May
be determined by
competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; White, Weld &
Co.; The First
Boston Corp.
tions, when the Bank of
England
announced the
markup in its re¬
discount rate.
c
for
.
Feb.
reported company plans to issue
and sell
$10,000,000 to $15,000,000 of first
mortgage
seasoned
28
Proceeds
15 Broad
yields
expansion
reported company may offer in
May
$35,000,000 of first mortgage and collateral trust bonds.
of
March 27.
the
yet determined.
& Co. Inc.
Probable bidders:
if Portland Gas &
if Northern Illinois Gas Co.
late in March
not
$50,000,000 of bonds. Underwriters—Stone & Webster
Securities Corp., White, Weld & Co. and
Halsey, Stuart
reported company may receive bids about
of March
trust certificates.
bidding. Probable bidders:
Inc.; Morgan Stanley & Co. Bidson
date
a
Proceeds—For
sell
Feb.
Inc.; Salomon Bros. & Hutzler.'
Jan. 9 Keith S.
McIIugh, President, announced that the
directors have authorized the sale
of
$55,000,000 of re¬
funding mortgage bonds.
Proceeds—Together with funds
_frorr. sale of
1,100,000 additional shares of common
stock
at $100 per share to
American Telephone &
Telegraph
Co., to be used to repay bank loans.
Underwriter—To be
determined by competitive
& Co.
of
Tennessee Gas Transmission Co.
Jan.
1956.
Expected to be received
as
unit.
—
the middle
first
Halsey, Stuart
held
per
working capital.
Office
404
Logan Street, Adrian,
Mich. Underwriter—Golkin &
Co., New York. Registra¬
tion—Expected in very near future.
was
determined
Feb. 14 it
tive
■
shares
if Union Electric Co- of Missouri
mortgage bonds during October
Underwriters—To be determined
by competi¬
bidding. Probable bidders:
Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co., Salomon Bros. &
Hutzler, Union
Securities Corp. and
Wood, Struthers & Co.
(jointly);
Lehman
Brothers; The First Boston Corp.; Equitable
Se¬
curities Corp.; Merrill
Lynch, Pierce, Fenner &
Beane,
Kidder, Peabody & Co. and White, Weld & Co.
(jointly).
New York
Telephone Co. (3/27)r
of
100
Price—$418.75
(3/20)
if Pennsylvania RR.
announced company plans to
issue and sell
of
was
$25,000,000 >of
March 20.
New England Power Co.
$10,000,000
1
each
-
Corp., Adrian, Mich.
it was announced
corporation plans to offer
rights to its common stockholders to purchase
$1,000,000
of 51/2% sinking fund subordinated
debentures, 100,000
shares of 60-cent cumulative
preferred stock, and war¬
rants tc purchase
60,000 shares of common stock at $8
per share in units of $250 of
debentures, 25 shares of
preferred stock and detachable warrants
(good until
March 31, 1961) to purchase 15 shares of
common stock.5
The offering is to be made on the
basis of one unit for
ders:
The First Boston
rill Lynch,
Jan. 3 it
Stubnitz Greene
Underwriter—To
by competitive bidding. Probable bid¬
Kuhn, Loeb & Co.; W. C. Langley & Co. and
Glore, Forgan & Co. (jointly); Kidder, Peabody &
Co.,
The First Boston Corp.:
Smith, Barney & Co.; Harriman
Ripley & Co. Inc. Bids—Expected* to be received on
be
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.;
Kuhn, Loeb
& Co., Salomon Bros. &
Hutzler, Union Securities Corp.
and Wood, Struthers &
Co.
11
Porter-Stacy Co., Houston, Tex.
reported company proposes issuance and
sale of $9,000,000 of preferred stock
early next year.
Proceeds—For construction program.
determined
16 it
was announced
company plans to offer pub¬
licly to Texas residents 75,000 shares of capital
stock.;
Price—$1.50 per share. Business—To
produce, sell and
distribute syndicated films for
television. Underwriter—
Feb.
Dec. 19 it
company
This would be followed
by a $20,000,000
first mortgage bond issue
by the resultant company, the
name of which has not as
yet been determined. Under¬
writer
May be
Co. and
Jan.
(3/20)
Pennsylvania Electric Co.
during 1956.
—
(3/20)
reported company plans to issue and sell
first mortgage bonds.
Proceeds
To repay
bank loans and
for new construction.
Underwriter—To be determined by
competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; The First
Boston Corp.; Kuhn, Loeb &"
Co.; Kidder, Peabody &
Co.; Equitable Securities Corp.; Harriman
Ripley & Co.s
Bids—Expected to be received on March 20.
New England Electric
System
Jan.
|
—
(jointly); Merrill Lynch, Pierce, Fenner &
Beane, Kid¬
der, Peabody & Co. and
White, Weld & Co. (jointly).
Bids—Expected on April 18.
Co.
bidding.
Halsey, Stuart & Co. Inc.; Blyth & Co.,
Inc.; Lehman Brothers, White, Weld & Co. and Union
Securities Corp. (jointly).
-
about
Gas
bank loans and construction
program.
Underwriter—To be determined by
competitive
15, the directors authorized the sale of $25,000,000
of first and
refunding mortgage bonds.
Proceeds—For
construction program.
Underwriter—To be determined
by competitive bidding. Probable bidders:
Halsey, Stu¬
art & Co.; Blyth &
Co., Inc.; The First Boston Corp. Bids
—Expected to be received on March 20.
Dec. 19 it
California
was
Spencer Telefilm Corp., Beaumont, Texas
if Pacific Gas & Electric Co.
Pennsylvania Electric Co.
exemption from
Probable bidders:
Feb.
(4/18)
Co. if
For reduction of
New York.
stockholders 834,976 additional shares
of common stock
on the basis of one new
share for each 12 shares
held.
Underwriter—To be determined by
competitive bidding.
Probable bidders:
Blyth & Co., Inc., Lehman Brothers
and Bear, Stearns & Co.
(jointly); Carl M. Loeb, Rhoades
& Co.,
Ladenburg, Thalmann & Co. and Wertheim & Co.
&
reported company plans to issue and sell
May $40,000,000 of first mortgage bonds. Proceeds—
in
(probably
plans to 'offer to its
company
Southern
notes, convertible into preferred stock at
maturity, and
common stock).
Underwriter—Salomon Bros. & Hutzler,
bid¬
Corp. and Dean Witter
Jan. 30 it
$150,000,000. Type
financing has not yet been determined, but tentative
plans call for private sale of first mortgage bonds and
public offer of about $40,000,000 of securities
ding, the following may bid: Halsey, Stuart & Co.
Inc.;
White, Weld & Co.; Lehman Brothers and Union
Secu¬
rities Corp. (jointly).
was
competitive bidding is obtained.
of
was
Underwriter—If determined
rities
Louisiana from the Sabine River to the Gulf
Coast of
the State of Mississippi. It is
estimated that this gather¬
ing system will cost approximately
Pipe Line Co. of America
it
of
coast
reported company plans to issue and sell
late this
Spring $35,000,000 of first mortgage bonds due
1976.
com¬
has filed an application with the Federal Power
Commission for a certificate of
necessity to build a
364-mile submarine gas pipeline off-shore the
pany
on
16
reported company is planning to offer
78,220 additional shares of common stock to its common
stockholders on a l-for-8 basis and
80;500 shares of new
cumulative preferred stock
(par $50) first in exchange
for outstanding 6%
preferred stock (which is callable at
115). Underwriters—May be Stone & Webster Secu¬
•
Offshore Gathering Corp.,
Nov. 18 David C.
Bintliff,
Goldman, Sachs
(jointly).
Feb.
Co.;
(jointly); and Glore,
Forgan & Co.
was announced
company plans to issue and sell
$10,000,000 of first mortgage bonds, series E, due 1986.
Underwriter—To be determined by
competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; The First
Boston Corp.; Kuhn, Loeb &
Co.; Salomon Bros. & Hutzler, White, Weld & Co.; Blyth & Co., Inc. and Harriman
Ripley & Co. Inc. (jointly); Union Securities
Corp.;
Kidder, Peabody & Co. and Stone & Webster Securities
Corp. (jointly); Lehman Brothers and
Seattle
if Sierra Pacific Power Co.
and
Securities Corp. (jointly);
Smith, Barney &
Lehman Brothers and Riter & Co.
Jan. 3 it
&
Corp.
Union
(3/20)
March 20.
be
bidders: Halsey Stuart & Co.
Inc.; Blyth & Co., Inc. and
The First Boston Corp.
(jointly); Merrill Lynch, Pierce,
Fenner & Beane,
Kidder, Peabody & Co. and White,
Weld & Co. (jointly);
Equitable Securities
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; White, Weld
& Co.; Blyth & Co., Inc.;
Kidder, Peabody & Co. and
Drexel & Co. (jointly); The First Boston
Bank,
record Jan. 18,
1956, the right to subscribe on or before Feb. 24 for
100,000 additional shares of capital stock (par $20) on
the basis of one new share for each
eight shares held.
Price—$85 per share. Proceeds—To increase capital and
surplus. Underwriters—Blyth & Co., Inc.; The First Bos¬
ton
Corp.; Merrill Lynch, Pierce, Fenner & Beane;
Pacific Northwest Co.; Dean Witter &
Co.; A. C. Allyn &
Co. Inc.; Foster &
Marshall; R. L. Day & Co.; Grande
& Co., Inc., and Walston &
Co.
year $20,000,000 of first
mortgage bonds due
Proceeds—For construction program. Underwriter
determined by competitive
bidding. Probable
1986.
reported that company is considering the
sale of additional first mortgage bonds later this
year.
Underwriter—To be determined by competitive
was
National
Jan. 24 bank offered its stockholders of
later this
Feb. 6 it
Thursday, February 23, 1956
...
stock
(in
units).
On March 6, the Bell
Telephone
Co. of Pennsylvania will open bids
u
*4" *
siA
*
*
's*
^
^
^
nated, 20-year debentures and $10
million of 20-year sinking fund
debentures.,
,
Proceeds, it was explained will
put the company in funds for car¬
rying out its expansion program
and will provide additional work¬
ing capital needed in the business.
Volume 183
Number 5510
Continued
jrom
The Commercial and Financial Chronicle
...
failures remained 14% below the prewar level of 293 in the similar
5
page
(985)
week of
The State of Trade and
Motors
the
is
lone
firm
reveling
in
Industry
stepped-up
activity,
being
6.5% better the past week than the corresponding week last year.
Packard, meanwhile, will not
reopen its gates on Monday of
previously anticipated. No word has been re¬
leased as to when operations will resume. Studebaker, therefore,
was responsible for last week's entire S-P turnout of 2,600 cars.
this week
as
Capacity
Strong steel demand is shaping up for the second half of this
"Steel" magazine reported on Monday of this week.
The national metalworking weekly said that with some auto¬
makers planning to introduce 1957 models in August and Septem¬
year,
ber, demand for the
Wholesale Food Price Index Turns Upward
In Latest Week
14,
$5.90
pointed out that even though the auto industry—
largest single user
has lessened its pressure for steel, the
demand
currently exceeds supply, with steel mills
pro¬
ducing ingots and castings at 100% of capacity in the week ended
The current figure marks
$6.69 last year and
drop of 16.5%.
price
a
were
represents the
total
sum
ond
construction'
industry,
years ago,
largest user of steel, is
making more than seasonal gains in booking new business, accord¬
ing to this trade paper. Much of this work will be put into place
in the last half of this year.
Wholesale
Some structural steel fabricators
booking business into 1957 and
are
are
predicting their product will
be in tight supply for the next 18 months.
keep production of them going through the last half.
whose business has been
needs
show
will
slow,
up
pound
per
of
in steel
prices, the publication said.
so consumers are
Inventories
not
are
The
American
Iron
and
Steel
Institute
announced
that
the
operating rate of steel companies having 96.1% of the steelmaking
capacity for the entire industry will be at an average of 98.5%
of capacity for the week beginning Feb. 20, 1956, equivalent to
2,425,000 tons of ingot and steel for castings as compared with
98.8% of capacity, and 2,433,000 tons (revised)
a
week
ago.
The industry's ingot production rate for the weeks in 1956 is
based
on
annual
capacity
For the like week
duction
2,472,000 tons.
a
of
128,363,090 tons
as
month ago the rate was
A year
ago
Jan.
of
1,
1956.
100.4% and
pro¬
the actual weekly production
was placed at 2,191,000 tons or
90.8%. The operating rate is not
comparable because capacity is higher than capacity in 1955. The
percentage figures for 1955 are based
828,310 tons as of Jan. 1, 1955.
on
annual capacity of 125,-
Electric Output Continues to Register Mild Declines
The amount of electric energy distributed by the electric light
and power
industry for the week ended Saturday, Feb. 18, 1956,
was estimated at
11,321,000,000 kwh., a decrease below the week
ended Feb. 11, 1956, according to the Edison Electric Institute.
This week's output fell 22,000,000 kwh. below that of the
previous week; it increased 1,409,000,000 kwh. or 14.2% above
the
comparable
1955 week and
2,770,000,000 kwh.
over
in the Winter wheat
areas of the Southwest and snow covering was said to be pretty
general.
Corn weakened under ample offerings, following the
announcement that the 1956 support price would be cut 18 cents
to $1.40 per bushel.
that
5 cents
pound in
a
Loadings of
increased 3,339
revenue
cars
or
last
,
!
to
And Was 25.5%
Under Similar Period in 1955
Car output for the latest week ended Feb. 17, 1956, according
"Ward's Automotive Reports," was off 5.2% from that of the
total gain of
Loan entries of 1955-crop cotton in the week ended
Feb. 3 were down sharply and totalled 116,500 bales, compared
with 189,800 bales in the preceding week.
year.
Trade Volume Showed
And
Was
the
above
year.
-
level
corresponding
the
of
»
.
period
Y ■;
..■«*,
Continued reduced-price sales encouraged consumer spending
Winter
chases of
merchandise
slight
a
rise
reported in
was
pur¬
Spring apparel.
While volume
in
total
in the buying of used
volume
dollar
higher than
automobiles equalled that of the
a
year
retail
of
the
week
East
to
Middle
and
West
+7; South and Pacific Coast +2
+3 to
H-6; Northwest and Southwest +1 to
Wholesale
dollar
in
orders
volume
the
week
+5%.
expanded somewhat and
Last week the industry assembled an estimated 129,210 cars,
compared with 136,308 (revised) in the previous week. The past
week's production total of cars and trucks amounted to 153,507
total
units, or a decrease of 7,460
output, states "Ward's."
from the Federal Reserve Board's index for the week ended
hicles
week's car output dropped below that of the previous
by 7,098 cars, while truck output was lower by 362 ve¬
during the week.
In the corresponding week last year
173,482
cars
and 14,953 trucks
1955
moderately
exceeded
that
of
the
the
similar
week.
Department
were
assembled.
In
the
store
sales
on
country-wide
a
basis
taken
as
Feb.
preceding week, Feb. 4, 1956,
an
increase of 5%
was
re¬
ported. For the four weeks ended Feb. 11, 1956, an increase of 5%
was recorded.
For the period Jan. 1, 1956 to Feb. 11, 1956 a gain
of 2% was registered above that of 1955.
Retail
trade
in
New
York
City
last week registered
advance
week and 14,953 a year ago.
served
to
Canadian output last week was placed at 5,950 cars and 1,252
trucks. In the previous week Dominion plants built 3.072 cars and
Trade
observers
1,071 trucks, and for the comparable 1955 week, 7,432 cars and
According to the Federal Reserve Board's index, department
store sales in New York City for the weekly period ended Feb.
777
trucks.
Commercial and
industrial failures
rose
to
252
in
Inc., reports.
year
and
The toll
was
the
week
well above the 205 of the similar week
the 215 of the comparable 1954 week.
or
the
ended Feb. 16 from 236 in the preceding week, Dun & Bradstreet,
last
1
inclement
cut
into
the
weather
heavy
estimated
in
the
latter
gains made
last
week's
on
gain
part
of
the
a
Lincoln's Birthday.
would
not
exceed
2%.
However,
preceding week, Feb. 4, 1956,
-
.
A
in
or
March
to
1,
1961,
share
if
redeemed
per
after
or
March
1,
through
on
1976.
major portion of the proceeds
from this sale will
be applied to
outstanding shortterm notes, and the balance will
be added to the company's gen¬
the payment of
eral funds.
Tennessee
ates
Gas
and
owns
oper¬
pipe line system for trans¬
mitting and selling of natural gas
a
for resale.
Its principal customers
companies
comprising
the
systems
of
the
Columbia
Gas
are
System,
Inc.,
Natural Gas
for
count
Consolidated
and
Company, which
56%
deliveries
of
the
of
in
gas
ac¬
company's
1955.
The
present
pipe line system, — ap¬
proximately 8,962 miles in length
—begins in the Rio Grande Valley
of Texas, and extends in a north¬
erly direction through the Ap¬
palachian area and then easterly
through New York, including the
New York
into
metropolitan
several
The
New
and
area,
England states.
is presently en¬
expansion program
substantially increase
the capacity of its line. The esti¬
mated remaining cost of its au¬
thorized program is $58,000,000.
In addition the company has an
company
gaged
in
which
will
an
application
Federal
pending
daily
at
for
delivery
further
capacity,
estimated cost of $24,319,000
an
in
the
increase
to
system
before
Commission
Power
authorization
order
to
meet
quirements
1956-57.
delivery
re¬
winter
the
for
of
has
Gas
Tennessee
also
applied to the FPC for authority
install
to
added
compressor
ca¬
Midwestern
to
Gas
Transmission
Company,
at
an
estimated cost of $18,615,000. Mid¬
western Gas has filed an applica¬
tion
with
the
FPC
to
construct
natural gas pipe line system to
extend from a point on the Inter¬
a
nesota
Boundary between Min¬
Manitoba, where it is
and
pipe line, across Minnesota, Wis¬
consin,
tucky
Indiana,
Illinois,
Ken¬
Tennessee to a point
Gas's present pipe
and
Tennessee
on
line
system
The
midwestern
near
Portland, Tenn.
for
system calls
cost
2,067 miles of pipe line, at a
of
$103,400,000.
approximately
For
the
operating
and
a
12
months ended Dec.
Gas had an
of $200,412,664,
Tennessee
1955,
revenue
net
of
income
$30,316,277,
compared with $142,995,640 oper¬
ating revenue, and $20,627,692 net
income for 1954.
Hornblower & Weeks Adds
(Special to The Financial
CHICAGO,
111.
—
Chronicle)
Thomas
J.
Foley has been added to the staff
of Hornblower & Weeks, 134 So.
La
increase of 8% was recorded.
For the four week's ending Feb. 11, 1956, an increase of 6% was
registered.
For the period Jan. 1, 1956 to Feb. 11, 1956 the
index recorded a rise of 2%
above that of the corresponding
period in 1955.
through March
,
prices
ranging
from
per
share
if
redeemed
period
11, 1956, increased 1% above those of the like period last year. In
Business Failures Show Moderate Rise
prior
$100
mild
Last week the agency reported there were 24,297 trucks made
in the United States. This compared with 24,659 in the previous
as
at
31,
11, 1956, increased 5% above those of the like period of last year.
Last
week
2
according to estimates by Dun &
ago,
con¬
to connect with the Trans-Canada
was
Bradstreet, Inc. Regional estimates varied from the comparable
1955 levels by the following percentages: New England 0 to +4;
previous week and 25.5% below the corresponding week in 1955.
units below the preceding week's
pre¬
occurred.
cars
in
trade
2.65
if
unpaid dividends—in whole
national
new
vious week, an upsurge
The
and
stock
This second preferred stock will
be redeemable plus accrued and
deliveries
slight increase in retail trade in the period
Wednesday of last week and the total dollar volume
a
moderately
last
Slight Increase the Past Week
a
Y
2.85
through
into
and
thereafter
preferred
pacity and other facilities on the
pipe line system south of Port¬
land, Tenn., to make proposed
Moderately Higher Than 1955 Period
was
on
to 6%
Declined 5.2% the Past Week
a
I
Spot cotton prices in the domestic market continued to move
higher for the third successive week. Strengthening influences
were
attributed to
the dwindling certified stock, a continued
tightening of "free" cotton supply and the prospect of further
acreage curtailment this year via the "soil bank." Reported sales
in the 14 spot markets last week totalled 375,500 bales, the largest
weekly volume of the current season. They compared with 283,600
bales a week earlier and 176,500 bales in the corresponding week
cars,
U. S. Car Output
another 3 cents, making
week.
a
and other countries: reaching 26,500 tons.
Livestock prices gen¬
erally were steady to slightly firmer for the week. The agricul¬
ture Department reported over the week-end that the number
of livestock and poultry on farms on Jan. 1 increased 2% in
1955 over 1954, but that the aggregate value declined 4%.
in
Loadings for the week ended Feb. 11, 1956, totaled 684,328
an increase of 45,540 cars, or 7.1% above the corresponding
1955 week, and an increase of 60,622 cars, or 9.7% above the cor¬
responding week in 1954.
sharply follow¬
prices
moderately for the week but devel¬
at the close aided by seasonal demand for
Easter trade requirements. Lard prices were somewhat stronger;
export business was the best in some time with sales to Austria
was
Association of American Railroads reports.
rose
firmness
some
ended
freight for the week ended Feb. 11, 1956
0.5% above the preceding week, the
reported
Cocoa prices were down
oped
There
J
was
large distributor had advanced wholesale
a
of their roasted coffee by
the like
Loadings in Week Ended Feb. 11, Increase
Slightly Above the Preceding Week
precipitation
Coffee continued to trend upward. Prices
news
week in 1954.
Car
Agriculture
Additional
ing
Steel prices remained steady this week and kept "Steel's"
base-price composite on finished steel at $127.91 a net ton.
largely influenced by the action
Committee in approving a farm bill
was
-
;
inclined to continue to lay in steel tonnage
get it.
can
Senate
wheat
including a "soil bank" feature and a return to high and rigid
price supports, together with a growing tightness in "free" wheat
in the Chicago market.
Y
pointed out
creases
the
uptrend in
1961
common
1966.
yYy"
The
booking some orders and their
second-half order books. Adding
summer vacation schedules in mills customarily
in. the last half. Also a threat to production in that
period is the possibility of a steelworkers' strike growing out of
labor contract negotiations at midyear. '
Stimulating current demand is the likelihood of further in¬
on
Grain price movements continued irregular with wheat scoring
Shipbuilders,
cut output
previous, and 277.46
further advances while other grains finished mostly lower for the
week.
Y/\Y;.' "-YYYY
tightness to the second-half steel market may be a reduced supply,
"Steel" added.
'
:
Y
they
1,
$104.50
range,
sec¬
($100
into
stock
common
of
1,
the corresponding date a year ago.
are
on
narrow
Feb. 14, compared with 280.62 a week
on
modernization and expansion this year.
"Steel" reported enough railroad freight cars are on order to
if
of
of second
convertible
verted
Lower in
the Dun & Bradstreet, daily
wholesale commodity price index rose slightly the past week to
reach the highest level in several years. Tne index closed at 281.24
Contributing to the construction boom is the steel industry
which plans to spend its greatest annual outlay in history for
high,
is
shares
Commodity Price Index Advanced Slightly
Highest Level in Several Years
a
offered
preferred stock at par
shares
or a
In Latest Week to Reach
Continuing in
21
shares of Ten¬
Transmission
Co.
share).
March
price
Feb.
on
400,000
Each share
of 31 raw foodstuffs and meats in general use and its chief function
is to show the general trend of food prices at the wholesale level.
second
Co.
Gas
part
The
It
&
stock
Feb. 19.
steel
Weld
per
wheat, hams, butter,
the
of
underwriting group jointly
by Stone & Webster Se¬
curities
Corporation and White,
against
as
coffee, cottonseed oil, eggs, .potatoes and steers.
flour, corn, rye, cats, lard, cocoa and hogs.
index
An
headed
4.50% cumulative convertible
were
The
Preferred Shrs. Offered
nessee
decline of 11.2%
with $7.11 two
Y
compares
Higher in wholesale ccst last week
sugar,
"Steel"
week earlier.
a
from
Tenn. Gas Transmiss'n
publicly
Following the previous week's downward movement, the
wholesale food price index, compiled by Dun &
Bradstreet, Inc.,
resumed its upward trend to stand at
$5.94 on Feb.
could make the auto industry clamor for
new
steel.
over-all
'•
was
Steel Production Set This Week at 98.5% of
the
1939.
Among failures with liabilities of $5,000 or more, there was a
slight rise to 209 from 205 a week ago and 187 last year. Small
failures with liabilities under $5,000, climbed to 43 from 31 in the
previous week and 18 in the corresponding 1955 week. Eleven
businesses failed with liabilities in excess of
$100,000 reflecting
a noticeable drop from the 36 in this
size group last week.
49
Salle
Street.
With Palmer,
Pollacchi
(Special to The Financial
an
Chronicle)
BOSTON, Mass.—Frank P.
cio
has
become
connected
Palmer, Pollacchi & Co.,
Ricwith
84 State
50
(986)
The Commercial and Financial Chronicle
The
Indications of Current
Business Activity
week
Latest
AMERICAN
steel
Indicated
INSTITUTE:
(STEEL
AND
IRON
.Feb. 26
(percent ol capacity)
operations
AMERICAN
Crude
Feb.
Feb.
Feb.
Feb.
Feb.
(bbls.)
(bbls.)
output
Kerosene output
output
Residual fuel oil output
Finished
(bbls.)
Revenue
oil
(bbls.)
dim
(bbls.)
7,045,750
8,016,000
8,068,000
7,949,000
Orders
7,384,000
1125,899,000
26,139,000
26,847,000
25,208,000
7.081,200
7,013,850
2,504,000
2,814,000
2,448,000
13,535,000
13,541,000
12,561,000
9,171,000
9,341,000
9,179,000
8,663,000
182,656,000
171,906,000
20,357,000
24,434,000
:
80,569,000
84,230,000
101,074,000
37,727,000
38,570,000
39,325,000
2,000
.Feb. 11
684,328
cars)—Feb. 11
680,989
676,609
638,788
710,338
671,244
661,944
$539,907,000
$608,230,000
$193,862,000
150,052,000
435,424,000
130,168,000
118,198,000
Feb. 16
83,946,000
107,774,000
132,233,000
34,252,000
32,841,000
40,573,000
.—Feb. 16
*9,755,000
10,635,000
(in
623,000
615,000
Other
(COMMERCIAL
Feb. 11
97
90
104
92
BRADSTREET, INC
11,321,000
11,343,000
11,521,000
9,912,000
DUN
AGE
COMPOSITE
steel
252
'r->
236
'i;\
,;:V"
269
Rlectrolytic
(E. A
Feb. 14
M. J.
5.174c
5.174c
-'
• -
Louis)
(St.
,
A
r
$59.09
■
$59.09
—
$49.00
.
'
'1
'
'
A
Feb. 15
—
42:700c
—
Feb. 15
—Feb. 15
;
-•
•
'>■'
16.000c
Sewer
16.000c \'r'
15.000c
15.800c
A
15.800c
14.800c
,13.500c
11.500c
r
•
Average
—Feb. 21
corporate
Feb. 21
—
—
Aaa
95.86
-
—Feb. 2V
•
111.81
110.34
—Feb. 21
102^6
■
Group
-Feb. 21
Group
Group
'—A
107.62
*110.15
109.60
110.88
107.62
102.80
102.46
DAILY
YIELD
106.39
106.39
108.52
108 34
109.60
109.42
V
104.48
106.04
107.80
108.16
*
...410.15
109.06
110.70
.•
.
"
AVERAGES:
U. 8. Government Bonds
—
Feb. 21
„
Average corporate
A;
2.81
2.78
2.80
3.28
3.30
3.20
A?
3.48
EXCHANGE
Odd-lot
3.37
3.37
3.39
3.29
3.25
3.26
3.27
3.16
3.19
3.20
3.22
3.13
403.9
406.8
403.1
404.0
ASSOCIATION:
246,870
405,935
261,871
246,171
283,585
291,570
296,030
261,128
Feb. 11
100
103
95
*
of period
A;,A
101
Feb. 11
613,937
651,772
622,501
433,801
Feb. 17
107.11
107.08
107.54
107.27
—
SPECIALISTS
SECURITIES
ON
EXCHANGE
N.
Y.
Dollar
1,450,274
931,198
1,675,172
Jan. 28
$71,393,463
$75,474,442
$48,092,580
$90,292,919
value
Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales
Jan. 28
1,049,864
782,941
5,779
4,229
2,904
1,433,593
10,962
1,005,336
1,045,635
780,037
1,422,637
Jan. 28
$53,007,826
$53,324,873
$36,325,614
$69,607,364
Jan. 28
;
229,500
266,490
213,860
356,670
Dollar value
Round-lot sales by dealers—
Number of shares—Total sales
Short sales
■
v / ;.
,
SALES
ROUND-LOT
ON
THE N.
STOCK
MEMBERS
Y.
229,500
266~490
213,860
356~670
601,000
604,600
338,910
615,250
Other
Jan. 28
sales
Total sales
Jan. 28
ACCOUNT
OF
432,780
10,710,570
11,143,350
373,180
11,529,320
11,902,500
227,070
8,954,210
9,181,280
16,794,760
17,472,350
purchases
1,418,910
1,143,820
2,130,770
236,340
212,650
34(6,860
1,260,500
1,419,160
119,360
1,034,450
1,905,020
2,251,880
.Jan. 28
547,540
23,500
23,740
5,800
38,300
.Jan.28
255,910
340,510
201,090
557,270
279,410
364,250
206,890
595,570
floor—
purchases
Total
227,820
.Jan. 28
sales
Total
1,153,810
267,550
.Jan.28
i
off the
1,631,810
294,340
floor—
Short sales
Initiated
1,496,840
.Jan. 28
the
purchases
transactions
sales
.Jan.28
445,042
55,120
565,580
55,920
431,610
.Jan. 28
53,610
101,130
.Jan. 28
464,485
529,217
367,425
764,465
.Jan.28
519,605
655,137
421,035
865,595
.Jan.28
2,224,662
2,252,040
1,803,250
3,368,845
.Jan.28
314,960
178,770
486,290
.Jan.28
1,980,895
292,310
2,358,887
1,602,965
3,226,755
2/295,855
2,651,197
1,781,735
3,713,045
690,535
Total round-lot transactions for account of members—
Total
purchases
Short sales
.Jan.28
WHOLESALE
LABOR
—
PRICES,
(1947-49
NEW
=
All
SERIES
U.
S.
DEPT.
All
BUSINESS
foods
112.1
*111.9
111.5
110.3
.Feb. 14
86.0
*84.7
83.9
93.4
Feb. 14
farm
and
foods
98.8
*98.7
98.1
103.2
Feb. 14
.
Jan.
1,
figure.
1956,
tNumber
as
72.4
72.2
71.3
not
'•
45
11
of
reported
93.469,598
70^88,203
^£2,440,862
'
59,894,159
16,227:585
£1,888,227
.
v
42.800,847,
Si
78,,033,103
■'
27,038,879
'
16,435,783
18.521,497
66,582,711
69,917,725
$431,383,658
$345,192,618
$406,628,525
(NEW)
&
4
45,121,585
49,423,105
304,071,033
357,205,420
13,363
■11,539'
13,181
44,750,000
-
61,735,949
369,647,709
45,270,000
36.580,000
2,498,000
'•
•
'
2,383,000
2,333,000
-:-
"
IN THE
BRADSTREET,
January
"•
_.
January:
'■
;
■ y,:
anthracite
;/'
■
Bituminous coal and lignite
/•• '
.■
(net tons)
(net
7-"
(BUREAU OF
(net
coke
——
tons)
v
Production
$14,350,014
*
27,425,666
(BUREAU OF MINES)—Month
Pennsylvania
COKE
"•
67,337,029
78,804,553
-a
MINES)—Month
"<
,
of
Dec.:
tons)-^.
(net
Eeehive coke
6,865,032
tons£4
coke stock
at
,44-
of
end
month
;
(net
♦6,356,571
225,211
.
*6,545,862
6,639,821
:
_
(net tons).
*189,291
'5,623,100
5,579,900
; 43,200
,
f
1,697,200
*1,747,536
$573,000
$510,000
$36,225
$35,059
27,895
27,247
14,312
14,172
6,435
6,057
1,641
1,634
5,507
tons)
PAPER
RESERVE
As
Jan.
of
CONSUMER
OF
31
5,384
;
2,941,571
CREDIT
NEW
OF
THE
in millions
and
of
as
term
Dec.Jil;
credit
RE¬
:
-
-
credit
-
4
4
,
4444
__=4.—4_-
,4
4_.
consumer
Feb. 14
120.1
*120.2
119.9
115.4
§Based
on
since introduction of Monthly Investment
new annual capacity
goods
4_;
—
modernization loans—
A.
Personal loans
8,330
4
A
$30,125
22,467
■
10,396
5,668
1,616
4.787
7,812
2,776 -
;
7,658
2,757
"
2,420
3,797
3,285 r
3,518
1,757
,4-
—
!'
"
IL_
FACTORY
EARNINGS
AVERAGE
AND
1,770
1,720
'
S.
DEPT.
-;
OF
*
of
January:
4"
manufacturing —4;
goods
,'
.
-
•
-
-
.
V
,
*
..
A
;
84.05
x
manufacturing
Durable
goods
All
•
40.6
4—
of 128,363,000 tons
as
$73.97
*86.31
*70.30
80.16
66.02
-
40.2
Earnings—
7
-
*41.3
%
41.0
w,
Nondurable goods
Hourly
A:
69.83
4^,
4
*$79.71
,4
-
♦41.2
$1.93
2.05
4
1
4
40.2
*41.9
A
40.9
40.2
.
•
-
manufacturing
Durable goods
Nondurable goods
'
.
$78.36
—44
Nondurable goods
Hours—
All
HOURS—WEEKLY
ESTIMATE —U.
,A
$1.93
$1.84
-
,
.
•
2.06
<
1.96
1.75
•1.74
1.68
144
144
132
143
141
132
80.5
84.9
77.5
$234,829,850
$22,993,400
INDUSTRIAL PRODUCTION—BOARD OF GOV¬
ERNORS
OF
THE
FEDERAL
RESERVE
SYSTEM—1947-49=100—Month of Jan.:
Seasonally adjusted
Unadjusted
4
INTERSTATE
Index
of
Railway
January
OF U.
COMMERCE
.
COMMISSION—
Employment
at
middle
of
(1947-49=100)
MARKET
AND
TRANSACTIONS
GUARANTEED
S. A.—Month
IN
DI¬
SECURITIES
of January:
Net sales
Net
$1,310,500
ZINC
purchase
OXIDE
(BUREAU
OF
MINES)—Month
December:
Production
(short
tons)
Shipments
Plan.
$713,000
SERIES—Esti-
intermediate
credit
consumer
Instalment
YORK—
FEDERAL
SYSTEM—REVISED
short
mated
Total
OF
omitted
OUTSTANDING—BOARD
GOVERNORS
SERVE
OUTSTANDING—FED¬
BANK
(000's
85.4
([Includes 735,000 barrels of foreign crude runs.
agairfst Jan. 1, 1955 basis of 125,828,310 tons.
of orders
13
$18,640,840
;
*
90,327,695
—
STATES—DUN
COAL OUTPUT
of
♦Revised
of
21
88,083,197
INCORPORATIONS
UNITED
INC.—Month
RECT
.Feb. 14
commodities other than
76
43 ^
19,455,956
■"
TREASURY
products
Meats
80-
,40 A.
-
33,361.776
—r—-
iCity___——44
City_i._i—_—
4—
'
OF
100):
commodities
Processed
73
155
it
___ ___
—
Commodity Group—
Parm
" :25
$16,985,356
United States—,
York
Durable
1,485,280
.Jan.28
Other
.
10
—
—___
Total
All
.Jan.28
Other
45
1C6
~~-2G6~
CITIES—Month,
Mountain
Weekly Earnings—
.Jan. 28
on
50,
•
:
165
38
—
LABOR—Month
MEM¬
Transactions of specialists in stocks in which registered-
Total
25
677,590
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Other transactions initiated
.
—
DUN
—
4—.
Service credit
FOR
VALUATION
Charge accounts
(SHARES):
Jan. 28
Total
;Av
20
90
-182
...
"
79
;
Non-instalment credit j
!
Single payment loans4_4__4
STOCK
TRANSACTIONS
Short sales
TRANSACTIONS
:
4—44—————;
Repair and
Total round-lot sales—
ROUND-LOT
A
—A-
West Central
Other
Jan. 28
OF
342
mff
•.
'
Automobile
„
Number of shares
ACCOUNT
287
31
97
;
South Central
Jan. 28
AND
22
186
88,137,540
East Central
Jan. 28
sales
Round-lot purchases by dealers—
FOR
1,011,115
Jan. 28
Jan. 28
short sales
other sales
EXCHANGE
_
742
20
47
,____
ERAL
1,351,389
TOTAL ROUND-LOT STOCK
building__
14
A.
767
•
—<23
Atlantic
COMMERCIAL
COMMISSION:
Jan. 28
Other
10
>
STOCK
(customers' purchases)—t
Customers'
7,
Oven
Number of shares
Customers'
-v
30
Atlantic
Oven
100
sales by dealers
:
190
Outside New York
Feb. 11
AND
DEALERS
South
New
STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT
50
232
290
44-
3.01
OIL, PAINT AND DRUG REPORTER PRICE INDEX—
=
!
£
————:
INC.—215
3.12
Feb. 11
AVERAGE
Middle
of
Percentage of activity
1949
20
55
.
3.10
Feb. 21
INDEX
at end
92
302
.
267
19
institutional
water
3.19
Feb. 21
(tons)
(tons)
29
723
1„___
,
£_
3.08
Feb. 21
(tons)
orders
83
8
•_
England
3.17
3.60
„
PAPERBOARD
Orders received
Unfilled
3.30
3.58
—-
COMMODITY
Production
3.29
3.57
-
Group
Group
28
25
351
27
'
3.16
Feb. 21
Group
Utilities
NATIONAL
3.27
Feb. 21
MOODY'S
3.07
3.15
Feb. 21
Public
18
•
27
■:,Ai 35
"
2.75
3.27
Feb. 21
Feb. 21
Railroad
55
42
20
221
4
L
PERMIT t
Pacific
—Feb. 21
Industrials
63
43
•A
55
1_:
—_.
.
New
109.97
-
^
MOODY'S BOND
telegraph
__J.
BRADSTREET,
of January:
109.42
112.93
107.80
v
96.55
A
111.25
-Feb. 21
—
—
96.04
A
111.62
-Feb. 21
Utilities
Industrials
107.98
•-•v-
108.16
Feb. 21
Baa
Public
58
83
Miscellaneous public service enterprises—I
Conservation and development
other public i„_44.
BUILDING >
96.20
a08.16
:
.
—Feb. 21
Railroad
163
AVERAGES:
U. 8. Government Bonds
V
84
188
303
_
facilities
•
189
105
26
Ail
*'•
''VA
162
18
.Ai'.
building-A
and
'186
107
41
'
Highways
90.125c
105.375c
•
Military
38.175c
.
543
•
non-residential
32.700c
>
r- 13.500c
15.800c
.—13.500c
44.675c
45.750c
99.625c
16.000c
.—Feb. 15
DAILY
-
utilities
and
21
—A:
299
34
construction
Other
.226
71
31
683
177
institutional..
private
Hospital
AA:--'
104
«.
——
public
1,122
" "•^"1,030
145
;
Educational
..
PRICES
BOND
92
228
garages
recreational
-2,073
-
1,160
654
-
$2,815
,;:
1,283
30
i
—
building—
;
Residential
$36.33
44.575c
•
100.250c
.——■Feb. 15
at
'
)
73
:
warehouses
Non-residential building
Industrial
$56.59
$53.17
43.775c
'
45.275c
—Feb. 15-
at.
(East St. Louis) at
MOODY'S
„
4.797c,
$59.09
f
$49.50
QUOTATIONS):
•1
r
tin
-AA. 2,410
'
975
•
and
utilities
other
Public
5.174c
copper—
refinery at
(New York)
Lead (New York) at
Zinc
<
-
Feb.14
Export
Lead
1
Feb. 14
Domestic refinery at
■traits
AAAAA $3,177- vsl
1,078
.
and
Telephone and
All
205
PRICES:
Fig iron (per gross ton)
Scrap steel (per gross ton)
METAL PRICES
$2,849
iZrl26
construction
Other
——Feb. 16
lb.)
(per
—'
,
.-
Finished
millions):
,249
and
Railroad
fit ">
•
IRON
45,862
Miscellaneous
Farm
'
;
€4,560
85,164
OF
—-I
X-,
non-residential
Hospital and
RESERVE
INDUSTRIAL)
124,277
.___
building (non-farm)
restaurants
Social
Public
AND
(in
„£_■
Educational
,
FAILURES
DEPT.
___A
—
Office buildings
654,000
100
kwh.)
000
95.523
*38,058
«
Stores,
8,690,000
585,000
-Feb. 18
=
S.
January
construction
Religious
10,190,000
Feb. 11
INDEX—FEDERAL
*93,426
72,908
(tons)
*87(616
40.979
Commercial
■
.
INSTITUTE:
ELECTRIC
output
63,694,000
Feb. 11
—
SALES
172,806,000
'I
MINES):
Bituminous coal and lignite (tons)
Pennsylvania anthracite (tons)
AVERAGE
92,578
89,657
-
Industrial
V
20,793,000
Electric
of
construction
new
42,901,000
Feb. 16
EDISON
CONSTRUCTION—U.
Non-residential
$268,250,000
State and municipal
SYSTEM—1947-49
■■■
.
~
Federal
DEPARTMENT STORE
2,008
of
(tons
—
.—Feb. 16
—
OF
5.087
3,796
of
grades
building (non-farm)
New dwelling units
Additions and alterations
621,059
.Feb. 16
BUREAU
INC.—Month
all
Residential
ENGINEERING
Public construction
S.
42,278
4,199
_
pounds)—
LABOR—Month
Total
Private
(no. of
output
Non-housekeeping
(U.
-
1,818
.
INSTITUTE
smelter
BUILDING
46,689,000;
399,292,000
140.615,000
COAL OUTPUT
L__;
cars
delivered
Stocks at end of period (tons)
Unfilled orders at end of
period
76,158,000
construction
Private construction
I
..freight
new
ZINC
zinc
NEWS-RECORD:
8.
Ago
Shipments (tons of 2,000 pounds >___
21.438.000
of cars)
—
Month
INSTITUTE—
January:
174,203,000
20,069,000
Feb. 10
CONSTRUCTION
^
2,608,000
13,437,000
•
Feb. 10
freight received from connections
Total U.
for
CAR
:
Year
December;^."
Slab
"f
RAILROADS:
(number
RAILWAY
of
AMERICAN
6,719,350
187,618,000
at
AMERICAN
ENGINEERING
AMERICAN
2,191,000
——Feb. 10
at
at
oil
freight loaded
Revenue
(bbls.)
_
fuel
OF
2,472,000
Feb. 10
gasoline
at—
fuel
Distillate
Residual
ASSOCIATION
*2,433,000
10
10
—
unfinished
and
Kerosene
90.8
Pievious
Month
Ago
100.4
of that date;
are as
Latest
10
10
(bbls.)
10
(bbls.)
Feb. 10
■tocks at refineries, bulk terminals, in transit, In pipe lines—
fuel oil
Distillate
§2,425,000
of quotations,
cases
,
New freight cars
(bbls.)
to stills—daily average
runs
.Feb. 26
in
or,
either for the
are
(bbls. of
average
each)
42 gallons
Crude
Gasoline
Ago
*98.8
that date,
on
production and other figures for the
cover
Dates shown in first column
.
Month
output—dally
condensate
and
Year
INSTITUTE:
PETROLEUM
oil
Month
Week
§96.5
month available.
or
month ended
or
Previous
Week
Equivalent to—
ftteel ingots and castings (net tons)
following statistical tabulations
latest week
Thursday, February 23, 1956
...
(short
tons)
Stocks at end of month
15,060
15,402
12,789
12,433
(short tons)
14,549
11,630
16,808
14,181
15,915
'
"
\
^
Number 5510
Volume 183
..The Commercial and Financial Chronicle
.
prich
Halsey, Sluart Group
Cffers Equip. Tr.Cifs.
1
associates
Louisville
of
priced
to
subject
are
the authorization cf the Inter¬
The
the
issue
is
be
to
following
MINING
HOMESTAKE
DIVIDEND
The Board
No.
locomotive
D.sbursing
D.v.dend
units
3,
at
meeting held today, declared
a
Dividend
IBM
record
INTERNATIONAL BUSINESS
Secretary.
Madison
590
«
i
February 20, 1956.
Secretary
•*
,
of
Common
record
of
Feb-uary
HARVESTER
COMPANY
1956.
on
February
the
March
on
ness
9,
stockholders
the
1956.
close of
UTILITIES COMPANY
of
S.
A.
rates per
AMERICAN STORES
Common
has been declared
1956, to share¬
holders of record March 9,1956.
Secretary and Treasurer
J. EGER, Secretary
Boston, Mass., February 13, 1956
.<=.
.
D.J. Ley,
,
February 17, 1956
27i/2tf
37 Vktf
vic£-pres. a treas.
February 15, 1956 declared the regular quart¬
erly dividend of 50c per
share.
the
At
Board
clared
same
oi
mUm ■■■■■■■■■
a
5%
stock
de¬
divi¬
Seventy-five
of
DIVIDEND
this
February
A
distribution
cash
Twenty-five
has
share
of
One
declared
been
Dollc
($1.25)
Cents
payable
on
March 26,
1956.
27,
r
a
J.
E.
York,
New
N.
Y.,
Treasurer
GOODWIN,
February
1956.
16,
lode y
of business
■.;«?
on
PAUL
Southern
1956, to
at Ihe e'ese
stoekholders of record
Edison
March 2, 1956.
B.
v;
Public Service Electric
JESSUP, Secretary
and Gas
DETROIT
time the
Directors
QUARTERLY
($.75) per share on the Common stock
Company
has been declared payable
at
the Treasurer's Office,
No, 165 Broadway,
New
York 6,
N.
Y., on March 19, 1956, to
stockholders of record at the close of business
of
by Ker.necott Copper Corporation,
MM
■
A
DIVIDEND NO. 153
Cents
February 17, 1956
Board of Directors
■
161 East 424 Street, New York, N.Y.
27^
.
.
PACIFIC COMPANY
SOUTHERN
KENNECOTT COPPER
CORPORATION
25<t
25<?
.
on
\
The Board of Directors has.
authorized the payment
of the
following quarterly dividends:
N. J.
ORIGINAL
Both
dividends
payable March 31, 1956
stockholders of record
February 29, 1956.
John 0. Park
Vice President ami 1
CORPORATION
are
reus.
UTILITIES
.
On January
COMPANY
a
share.
per
share.
4.32% SERIES
Common
a
60 cents
CUMULATIVE PREFERRED STOCK,
27,1956, the Board
Stock dividend of $.25
PREFERRED STOCK
Dividend No. 187
COMMON STOCK DIVIDEND NO. 104
of Directors voted
California
Company
DIVIDENDS
Company
NEWARK,
STEEL
dend.
on
seventy-five cents
the capital stock of
EMERY N. LEONARD
have
end
150th Dividend
The
.
5% Convertible Pfd. .
5.40% Convertible Pfd.
5V2% Convertible Pfd.
COMPANY
to
of
on
payable April 13,
of
March 15, 1956.
on
GERARD
sharej
5% Preferred/#.
\
share
this Company
March 15 to shareholders of
record March 1, 1956,
v
per
Quarterly dividends payable
been declared at the following
.
A dividend
busi¬
McCASKEY, JR.
Secretary
•
'
Quarterly Dividend
Senior Vice President & Treasurer
1956.
'•
.
stockholders of record at the close
business
Corporation,
30, .1956, to
March
at
CALIFORNIA-PACIFIC
Common
227th
Consecutive
Paul E. Shroads
declared
quarterly dividend No. 164 of fifty
cents (50Q per share on the common
stock payable April 16, 1956, to
Company have
vester
COMPANY
Directors at a
of
14, 1956,
declared a quarterly dividend of
one dollar per share on the capital
stock, which
will be payable
March 9, 1956, to stockholders
meeting
The Directors of International Har¬
meeting of the Beard of Directors of
Allegheny
Ludlum
Steel
Corporation held
V. today, February
16, 1956, a
dividend
of
forty
cents
($.40)
per
share
was
de¬
UNITED FRUIT
Consecutive
Board
The
INTERNATIONAL
Secretary
WECKERLEY,
R.
20,
Penna.
of
Secretary
Dividend
25,
1956
1956.
9,
a
payable
on
BOULTON, Treasurer
C. V.
of record February 24,
Stock
business
1956
(quarterly)—
to
93
No.
March
Allegheny ludlum Steel Corporation
Common
of
Machines will be mailed.
January 17,
Stock,
March
snare—payable
"<H.
,
Di^-d*
record
the close
1956.
B. H. Winham
105th
Preferred
Stock—Dividend
per
stockholders
/
at
February 21, 1956
share, payable March
Series
A —
(quarterly)—62 y2c .per share—
payable April 10, 1956 to stockholders of record
March 9,
1956.
NOTICES
the
record
March 9,
Quarterly Cash Dividend of
10, 1956, to
of business
on February 17. 1956. Transfer books will not
be closed. Checks prepared on IBM Accounting
per
.
on
share on
Corporation,
per
payable April 2, 1956, to stockholders
of this Corporation has
dends;-
Convertible
Dividend No. 10
clared
(37^**)
cents
the Common Stock of the
Vice-President &
this date
Directors has
dividend of thirty-seven and
a
one-half
this day declared a
The Boafd of
Directors of Dixie
Cup
Company,
makers
of
paper
drinking cups and food containers,
has
declared
the
following
divi¬
5%
;Pittsburgh,
declared
,
The Board of Directors
LOUISIANA
Dividend Notice
The Board of
March
on
John Corcoran,
New York 22
Ave.,
The 164th Consecutive
-
.
the close of business
Quarterly Dividend
1956.
DIXIE CUP COMPANY
[UP w
55c
At
SHREVEPDRT,
a quar¬
per
9, 1956. Checks will be mailed.
MACHINES CORPORATION
®
at
GAS
CORPORATION
stockholders of record, at the close
road
or
UNITED
CONSOLIDATION
share on the
Common Stock of the Company, payable
on
March 19,
1956, to shareholders of
$i.00
Merle-Smith; R. W. Press-
DIVIDEND
NOTICES
Agent.
W. HAMILTON,
:JOHN
,
February
;1
V
PITTSBURGH
Wornall
899
by
esti¬
Associated in the offering are—
Dick &
Co., 4627
terly dividend of 30 cents
secured
equipment
switchers.
Bell
R.
DIVIDEND
899
pany,
freight locomotives, and 12
hp. ciesel electric general
1600
E.
COMPANY
NO.
of Directors has declared
NOTICES
The Board of Directors of
KANSAS
CITY, Mo.—Lois L.
Spaun has been added to the staff
Road.
of forty c.nts ($.40) per share of $12.50
value
Capital Stock,
payable March
12,
1958, to stockholders of record March 1, 1956.
Checks wi.l be mailed by Irving Trust Com¬
to* cost not less than $4,556,250; 16 1600 hp. diesel electric
purpose
Mc-
par
mated
road
and
COAL COMPANY
Commerce Commission.
state
Inc.;
NOTICES
DIVIDEND
;•
annually
are
sale of the certificates
;
Co. Inc.; Wm.
Co.
&
DIVIDEND
DIVIDENDS
QUARTERLY
DIVIDEND
,
Dividend No. 36
NOTICE
27 cents per share.
The Board of Directors has de¬
PREFERRED STOCK DIVIDEND
At the
$1.50
tijgafc
same
share
a
a
was
dividend of
declared
on
the 6% Preferred Stock.
The
Board
declared
per
Both dividends will be paid in
cash March 20*. 1956, to holders
of record March 1, 1956.
of
Directors
dividend of 32 cents
on
the Common Stock
2, 1956 to stockholders of
ord
clared the following
for the quarter
at
the
of
D. W. JACK
|
Secretary
will be mailed from
Company's office in Los
Angeles, March 31. The Board
Checks
Per Share
08% Cumulative Preferred
.
.
.
.
.
.
<
4.30% Cumulative PreferreJ
.
.
.
$1.40 Dividend Preference....
of Directors has
$1.02
1.013
1.075
tive
.33
All dividends
are
payable
on or
before March 31,1956 to stock¬
Board
Directors
of
declared
a
eighty-seven
quarterly dividend of
and
one-half cents
per
Cumulative Preferred
B,
a
and
(933/it)
1
Dividend Numberjl7
per
on
4.40%
Cumulative Preferred Stock
Stock, Series
three-quarter
Regular Quarterly
Dividend
share on the outstand-
on
Common Stock
and
quarterly
a
eighty-seven
and
dividend
one-half
of
cents
share on the outstand¬
ing shares of the Company's 3V2%
(8V/2O
per
Cumulative Preferred Stock, Series
2,
1956, to the
of such stock of record at
payable
D,
holders
the
April
business
of
close
March
2,
1956.
The Directors of Diamond
Alkali
Company have on
declared a divi¬
Feb. 16,195(j,
dend of
Sl.lO^per share for
the quarter
Ending Mar. 15,
1956, payable Mar. 15, 1956,
to
holders of 4.40% Cumula¬
tive Preferred Stock of record
COMMON
DIVIDEND
Consecutive
Quarterly
and
A
The Board of Directo's of Amer¬
clared
quarterly d.vidend ot sixty-
a
one-half
two
and
jer
share
shares
the
of
cents
(62Vie)
on
the
outstanding
the
Common Stock
of
Company, payable March 30.
the holders of such stocx
record at the close of business
1956, to
of
March
2,
R. S.
of
PUBLIC SERVICE
CROSSROADS
21, 1958.
THE
EAST
Dividends
Cash
seventy-five cents (75(0 per
share will be
quarterly dividend of ZVfa
share, payable Mar.
5, 1956, to holders of Com¬
mon
Capital Stock of record
Feb. 28, 1956."-*?
paid
on
TENNESSEE
March 14,
1956, to stockholders of
jk GAS *
record
TRANSMISSION
February 29, 1956.
COMPANY
CHAMP CARRY
TEXAS
HOUSTON.
President
cents per
DONALD S.
AMERICA'S
The
DIAMOND ALKALI COMPANY
been declared
on
the Common
DIVIDEND
Stock, payable April 2, 1956 to
Secretary
Cleveland, Ohio, Feb. 17, 1956
:::
regular quarterly dividend of 35c per
share has
CA.RMICHAEL,
■v-'W-*
OF NATURAL GAS
LEADING TRANSPORTER
NO. 34
KYLE, Secretary
OF
predecessor companies
Feb. 28, 1956, and a regular
1956.
New York. February
Year
regular quarterly dividend of
•
ican Cyanamid Company today de¬
Treasurer
paid by Pullman Incorporated
ir.g shares of the Company's 3% 'Jo
C,
Incorporated
90th
cents
Cumulative Preferred Stock, Series
hale,
February 14, 1956
quarterly dividend of ninety-
three
p. c.
Secretary
today
share on the outstand¬
ing shares of the Company's 3V2 Vo
<87^0
and
F. Milton Ludlow
Amer¬
Company
Cyanamid
ican
to
including February 29.
Pullman
of
Stock, 4.24%
from its date of issue
holders of record March 2,1956.
DIVIDENDS
PREFERRED
Preferred
Series, at the quarterly rate of
261/2 cents per share, payable
May 31 to stockholders of
record May 5, for the period
43
Common
also author¬
ized the payment of an initial
on the new Cumula¬
dividend
February 17, 1956
COMPANY
pay¬
the
Dividend
Stock
rec¬
business
are
able March 31, 1956, to stock¬
holders of record March 5.
Class of
14.18% Cumulative Preferred
close
The above dividends
dividends
ending March 31,
1956:
Company, payable April
Secretary-Treasurer
January 27, 1956
today
Mcrch 1, 1956.
R.X~YbDER
AMERICAN
a
share
of the
The
51
(Special to The Financial Chronicle)
of
RR.
yield from 2.80% to 3.05%, ac¬
cording to maturity. Issuance and
to
The Illinois
Pollock
NOTICES
DIVIDEND
E. R. Bell Adds
Co.; Gregory &
&
Master, Hutchinson & Co.
1957 to 1971, inclusive.
certificates
The
Lu_F. Rothschild &
Co.;
certificates,
trust
maturing
O,
March 15,
•
Nashville
and
equipment
series
E.
Co., Inc. and
offering $3,645,000
are
&
Freeman
Sons;
Stuart &
Halsey,
3%
Co.;
(987)
of record
on
stockholders
March 2, 1956.
J. E. IVINS, Secretary
52
(988)
The Commercial and Financial Chronicle
Thursday, February 23, 1956
...
Dick
BUSINESS BUZZ
Nixon
the
as
Vice-Presi¬
Behind-the-Scene Interpretations
from the Nation's
•
California
time
some
/I
in
a
against Helen Gahagan Douglas
in the race for the Senate, Dick
Nixon just might on his own
•
«|/|
|
jTjL M i/\A/
Capital
Having been
conservative
on.
dential nominee.
tive
JL Cr Cv
become
again,
Also
the
a
conserva¬
"liberals"
"liberals"
all
fear.
who
have
played too close too often to too
Communists
many
Eisenhower's
President
second
a
his
of
nouncement
for
an¬
Republican
politics,
but
of
strictly Presidential politics.
For the sake of harvesting the
through the
medium of vetoing the Gas bill,
considerable consequences
some
of both
long- and short-term
a
character
t
First,
;
to the? President's '
Until the doctors
as
availability.
[reported that the President
[capable,
benefit
flow,
can
was
the
found
doctors
five
for
good
for
raised
re-election
argument,
of
above, but
late Sena¬
Taft, "cannot win."
[This column is intended to re¬
flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" own
views.]
clear-cut politi¬
cal
•:
advantage.
It is
10
tor
an¬
other apparent
Their
course, is
not the
that Nixon, like the
the
individuals
the
to
tentiary.
bill, the President
appears willing not merely to
[make monkeys out of his Re¬
publican following, but to give
the Democrats who oppose these
many
President
of the demagogy
against
observers were
[doubtful
that
the
President
would run. Excluding the naive,
1 after
lines, are scared
might revert to his
Commie
hunting that helped
put Alger Hiss in the peni¬
to death he
This is thus the playing, not of
availability
term
too many
or
Commie party
Plays Presidential Politics
WASHINGTON, D. C.—From
that this is the first
not
instance
White
the
of
•
House
[years more of an active life,
j seasoned observers were wait-
playing it for No. 1 over
Republicans in
Congress.
Jing
in
sponsorship of welfare and
spending issues' generally re-
for
only
the
nouncement.
did
odd
settle
not
the
on
figure like three to
which might raise
seven
tions
pacity to
this
the
to
as
elected.
v
-
veto
of
the
Gas
the
to
the
of
conservative
White
the
party,
House has been
heedless of the
welfare of his
Republican
bers of Congress.
if
term
,
the
In
full
second
a
wing
ca¬
the balance of
serve
and
'pugnant
ques¬
President's
In
its
some
years,
the
countless ways, in patronage,
an¬
Curiously,
'
doctors
formal
.
This
is
just
mem¬
most
the
spec¬
Life
Insurance
tacular expression of this brand
bill,
—
however, is the clincher that the
President
is not
intends to
posed, merely because the Pres¬
ident,
side
"popular"
obvious
an
concentra¬
the political angles was
on
intensified
when
is
it
appre¬
ciated what the President did to
the
Republican
in
party
Con¬
by his veto of the bill.
gress
Both Joe
lican
Martin, the Repub¬
in the House, and iHalleck, his assistant,
leader
Charley
voted for the bill in the House.
Halleck spoke for it.
Fighting Party Risky
is
A majority
However, a President who
brutally sacrifices his following,1
if only on one major issue, does
The other is
of the 53
Gas bill
votes for the
Republican.
were
his
half
out
way
Gas
be¬
on
bill.
the
Democrats
his
Ike Opposed
will
Few
liked
the
Republicans.
deluded
be
indication
President's
by the
that
he
strategem used
attempt to wreck the bill
an
in
the last
ate—the
minute in
horrendous
dignation
of
the
Sen¬
public in¬
Senator
Francis
Case
(R., S. Dak.) over the
i campaign gift of $2,500 from an
oil
man.
This
Truman
from
In
possible
the
the
not
in¬
considered
full
Internal
and
what
looked
the
their
have
influence
constituents,
even
with
those
starry-eyed about the "business
the
man's President:"
campaign contributions in 1954
take
or
,
To "take on"
advantage of the Repub¬
of
a
any
case
his
probable
session
and
"do
more
little"
if
is
into
not
the
political
game
Gas bill, were two separate
con¬
off very
long.
tributions
the
of
$2,500
CIO-PAC.
terrific pressure
from
each
The
CIO
put
tively
small
docket
of
legisla¬
From
the
Rather, the great majority of
the
moron
take
it
the
accepted
that
it
prices,
In
trade is expected to
that
was
so
a
Mr.
Eisenhower
opposition
bill
to
thesis
raise
gas
the President killed it.
other
the
President
that
while
tively
he
he
the
veto
words, the practical
political effect of the Presiden¬
leadership
tial veto is that it is
and
Watkins,
Moley
,
the
de
facto
is
Association,
teenth
ton
term, in vetoeing the
intention
to
seek
a
an¬
second
Gas
by
Raymond
Inc.,
■
1012
Four¬
Street, N. W., Washing¬
5,
(paper),
C.
D.
(quantity prices
pitch
a
renouncing and
on
$1.00
request).
doctors
through
v/ant
of
the
he
could
live
second
a
not
said
term, he did
subject the office
to
Presidency
in
With Goldman,
an¬
nouncing. The President could
say, in effect, that even though
such
bill,"
Sachs
(Special to The Financial Chronicle)
CHICAGO,
Ennis
has
HI.
Donald
—
H.
affiliated with
become
Goldman, Sachs & Co., 208 South
La
Salle
Street.
Ennis
Mr.
parlous times to the hazards of
previously with A.
his
was
Co.
health,
the
that
are
so
reason
the
he
hoped
he
able
States
men
(also
that there
party
a
was
should
in
no
select
him.
pitch
vantages:
the
It
would
have
would
trade
moron
ad¬
convince
that
he
was
a hair's breadth. All politi¬
cally wise would know that the
President expected
to
be
Another
Halsey, Stuart Adds
(Special to The Financial Chronicle)
CHICAGO,
111.
—
of the
"announcement" is
• ■
N.
Richard
Strang has become connected with
Halsey,
South
Stuart
La
&
Salle
Co.,
Inc.,
123
Street.
Forms E. S. Atwood Co.
BROOKLYN, N. Y.—Eleanor S.
Atwood is engaging
from
in
securities
a
offices
254-56
at
Third Street under the firm
consequence
Eisenhower
G. Becker &
renominated, that
many
United
Truman line)
con¬
of the President of
his
Con
American Enterprise
—
name
of Eleanor S. Atwood Co.
;
that it touches off in earnest the
drive
of ;
the
"liberal"
wing
the Republican party to
of
scuttle
have
TRADING MARKETS
following
not
Gas
it.
industry
Democratic
short-range
this
to
would
not
oil
said
Something logical
in between
Opens V.-P. Race
that
of
report
GOP
support
would
the
is
his
assured
of
nouncement
quarter
every
comes
the
Reclamation
Project—Pro by Sen. Arthur V.
business
of
Labor
7, N. Y. (cl&th), $5.95,
Colorado
announce¬
"drafted."
pass.
sequences
town
the
by
One
Promise Broken?
against the
on
bill.
find does not pay
take
not
politicians,
the Gas bill,
not ambitious. It would not pro¬
mote the candidacy of a rival
Gives Ike Room
to
second
a
of
Bertram R. Crane
M. Hoffman—Central
New York
Even if the
take
of
—
Company, 261 Broadway,
Upper
seriously. They know he
there
nothing" seseion. In the
of political contest it
is
possible for only a compara¬
the
opposition
ment
veto
with
Democrats.
the
Book
categorically
professional
the
Il¬
any¬
"do
Douglas (D.,
lit), who assumed leadership of
Senate
Handling
and Roger
to
heat
tion to
Paul
after
would not be
does
more
lican party in Congress requires
a cockiness that old hands in the
Senator
to
he will not
says
term,
This
developing
as
do
can
almost
they
the
lot of
a
were,
second term.
a
President
tion out.
In
President
passed
be
to
it
from
than
not,
as
Minority Leader of the Senate,
have the power to get legisla¬
<
Republican Congressmen also
could
Knowland
seek
the
dis¬
Johnson
more
program
advantage
Bill
dis¬
trinsically significant, for among
$30,000-plus of labor union
thought
any
The
his
and Rayburn in any case would
be most unlikely to give Mr.
of
crediting of Harry Truman.
•
be
may
Messrs.
Eisenhower
as
Richard
is "in business."
Mr.
of
the grounds of their
on
alone.
anger
of
scandals,
like
result
a
gives him
how to make tFie announcement.
would
The
.
that
say
as
possibility
counted
of
was
revelation
Revenue
Johnson.
three
This
Democrats which made
many
veto.
Rayburn.
lative program this year.
second
end, however, it
accumulating
hatred
the
conse¬
a
veto
can
just
about
forget
getting anywhere with his legis¬
stop
a
the
legislative
sometimes
is
getting
exceedingly
as
Senate Democratic
Lyndon
this
room,
Projects
—
(cloth), $4.00.
Successful
openly announcing
his willingness to
run, to openly
announcing that he woufd not
Speaker Sam
Leader
that
elbow
thing
of the President's
is
is
Mr.
/third is Bill Knowland. Friends
conservative
the
Tru¬
.
One
conservative
didn't
three
are
gentlemen
of
It
»
quence
term.
principles of the bill
but fell for the
in
There
angry
Eisenhower
or
Mr.
passage,
Won't Hit Program
the
Eisenhower is
as
after
write'
bill to
1950
palatable to
peril of great
and
moderate
Then
House
Truman vetoed it.
Administration
moderate
it
man.
long political experience. Harry
Truman was just as heedless of
neck
White
make
generation has is the absence of
the
of
GOP
current
the
difficulty
One
Bill Knowland,
Republican leader,
Senate
as
eventual
an
The
long-suffering
stuck
at
let
Housing
Schultz
Inc., Homewood,
Grievances
amendments to the
magnitude.
E.
Irwin,
linois
White
to
so
Sen¬
D.
averaged downward, a price trend reversal
could possibly effect greater capital
gain!"
politbureau probably
fire if asked privately.
After all, Eisenhower is still im¬
mensely popular, they would
say, so shut up and go along.
So long as the President is in
fact
overwhelmingly
popular,
there is nothing the politicaiiyravished
Republicans
can
do
but sputter in their corners in
silent political frustration.
Republicans in the House
ate, 31
the
Robert
are
House
for
In the
which
retort
the
voted
bill.
prices
Well, what can the angered
Republicans do about it? This
of the
the
"Don't you thinkf Father, you might reduce your
cap*
ital risks by averaging?—In a
receding market when
would
concentra¬
Eisenhower's
Mr.
issue,
political motivations.
on
tion
the
demagogic
a
showed
tion
taking
by
of
politics.
This
run.
is most generally sup¬
as
of
Fashion Park
ac¬
bill,
Indian Head Mills
Neither
nor
W. L. Maxson Co.
the
Republican
Morgan Engineering
for the
tion not merely of the
of the Republicans in
but
of
the
repudia¬
a
majority
Congress,
Republican
consistent
supporter
of
Mr.
Eisenhower that he has altered
own views
sharply to con¬
his
form to the White House line.
quixotic
so
to
as
have
been
some
such
assurances.
If this report
Mr.
Eisenhower
that
with
For
the
Kerr
(D.,
FOREIGN
apparently has
the
"dope"
Kerr
(and
was
Okla.)
SECURITIES
50 BROAD STREET
TEL:
HANOVER 2-0050
•
&
Co. Inc.
SPECIALISTS
NEW YORK 4, N. Y.
TELETYPE NY 1-971
Riverside
consented
Investment Securities
10 Post Office
Square, Boston 9, Mass.
Telephone
i
Co.
Cement
LERNER & CO.
like)
Gas bill of 1950, Senator Robert
S.
Carl Marks
is correct, then
followed strictly in the Truman
groove.
National
have worked
bill, it may be assumed,
had they not believed they had
leader¬
ship in both Houses.
Charley
Halleck, for instance, is such a
would
HUbbard 2-1990
Teletype
BS 69 '
■
@FedFRASER