The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
ESTABLISHED ISJ9
Financial
Pat. Office
Reg. U. S.
New York 7,
Number 5616
185
Volume
EDITORIAL
The
We See It
As
It is to be
in this
or
cause
The double set of standards
imposing "sanctions" upon
unduly divert attention from the
of the difficulties that the United Na-
,
tions has encountered in recent times. It is true./
of course,
that Russia has from the first been not
only defiant but contemptuous of the United Nar.
tions. It is equally plain thafEgypt definitely is
not disposed to permit
the-United Nations to
have any say in what her policy is to be. In light
of these and other related facts which might be
mentioned, it is not difficult to understand why
so
lukewarm to
are
many
-We
V /
do
enter" in
not.
however,
at
this time to
urement
and reduced
*
price inflation or
nation
for
,be
the
be
Immediately
ment
or
saying:
only'bonds,"
ing,
container be increased
to
of
weight
increased
through changes in the lawful unit,
and
or
suppose
that
on
securities
but
tial
DEALERS
Continued
NOW IN
afforded
are
merit."
is neither need
at
length
bonds
between
balanced
nor
upon
time to
the many
political background. Then, without assuming
only asserts that such capital gains are possible
has collected hundreds of millions of dollars in taxes
24
SECURITIES
year
ment not
ques-
page
my
ing; of investment decisions. It may
be well, however, just to mention;
some broad areas in the economic, financial, social, and
Chamberlain
Continued
on
20
page
of American
by Mr. Coburn before Trust Division
Association, New York City, Feb. 4, 1957.
Bankers
the role of
page 28
on
address
•An
Continued
"Stocks will go
I am say¬
concluding sen¬
ago, that "The port¬
nor
Arthur L. Coburn
William
its Internal Revenue Depart¬
the United States through
I wish to be
components that enter into the mak¬
son, in the government or out, will
question these statements.
\
Nevertheless
the'1 government of
founded.
•
stocks has great
discourse
competent per¬
any
a
There
It is impossible
for its measurement.
to
.
a
agree¬
however, that I am
"Buy no stocks; buy
repeat
well
gallon,-
has
you
general
down; bonds will go up."
the amount
tence
the
than
clear,
folio
a
in
disagreement.
not
the'
of
each
reaction
entirely
increased
or
to stand here today and state twq
attractive than for years.
mental
'
monetary
change * in
legislative
liquid in
-meas-
me
(1) Stocks seem to me less attractive
(2) Bonds seem to me
years;
more
theatten¬
and
of
can
area
the
for
easy
offerings unattractive.
simple facts:
this
in
is
It
through change in the dimension of
degree in which such a transformation has
being called into serious
a
more
no
for
dimension of the acre
changed sufficiently to permit some sort of
effective world government (within limits, of
course) that the League of Nations and then the
now
than
through
had
place is
value
of
devaluation
unit
infringe upon those of others. This, of course, is
a situation that has long existed, existed in fact
since time began. It was upon the hope that it
taken
can
unit
dant
of
of
will
deflation; endorses orthodox
money rate rise to temper excessive business pace; and
finds rates on most recent mortgage and real estate under
have
through legislative changes
lawful
the
in
capital
increased
be
Gain
manner.
realized
,
tional ambitions. And most have ambitions which
were
individual
an
justice upon various peoples. The trouble is, of
course, that the peoples of the world, or many of.
them, are simply not ready to yield up their na¬
Nations
tivity of labor and capital will determine whether we
cannot be in¬
creased by reducing the dimension of the lawful unit for.
the measurement, of value.
Neither can the capital of
accumulated
The
.
into the debate now raging
question of sanctions for Israel.
We think it more profitable to ponder the basic
source of difficulty surrounding the efforts of the
United Nations to impose what it thinks of as
The
(2) list of 20 growth stocks selected to illustrate the
principle that the long view is better than the short; and
(3) bond and preferred stock list for specific fixedincome investment. J Mr. Cobturn believes joint produc¬
lease
around this whole
United
a new
unit of measurement.....
ysay
any
,
V
,
intend
(1) pension and profit-sharing
policy in which "we ... buy fewer
stocks higher and more stocks lower than by straight
dollar averaging" and adherence to a book value basis;
investment
trust
charging that,"not until the selling price in equivalent
a gain [or, fixed fair return]
realized." Believes it is unjustifiable to levy taxes on
of values which conform to
REGISTRATION—Underwriters, dealers and investors in corporate
a
undertakings in
complete picture of issues now registered
our
with the SEC and poten¬
36.
"Securities in Registration" Section, starting 011 page
State, Municipal
in
and
U. S. Government,
UNDERWRITERS
State and
Municipal
BROKERS
Securities
telephone:
and
STATE
DEALERS.
1
BONDS
RAILROAD
PUBLIC
CORN EXCHANGE
FOR 1957"
UTILITY
ARE NOW AVAILABLE
ON
SECURITIES
BANK
THE FIRST NATIONAL CITY BANK
DEPARTMENT
Burnham
KEV»
MCM3EKS
30 BROAD ST., N.Y
15 BROAD
CABLE:
(TOOK
and
STREET. NEW YORK 3. N. Y.
•
014-1400
Bond
Dept. Teletype: NY 1-708
Net
T. L.Watson &Co.
established
1832
Active
Exchange
Canadian
Orders
Stock
CANADIAN
Exchange
STREET
BROAD
25
NEW YORK 4, N. Y.
►
COMPANY
DAIU5
MINES LIMITED
5^4 %
Executed
Qn
i
•
*
4
bridgeport
i
•
4
»
DIRECT
.
*
perth amboy
WIRES TO
MEMBERS
NEW
All
Markets
DEPARTMENT
NEW YORK
1
a
maintained
$1,000
Bond
Bonds,
1963
Stock
Kbox
Corporation
Class A Common
Stock
1,
units
on
and
35
Analysis
consisting
shares of
Common
our
upon
request fe
Unlisted Trading Dept.
(Room 707)
1-2270
MONTREAL AND TORONTO
YORK
June
Common
Doxcuox Securities
Goodbody & Co.
115 BROADWAY
First Mortgage
Due
Exchanges At Regular Rates
Teletype NY
goidhuHtit
STANROCK URANIUM
Brokers
of
American
BANK
Maintained
and
CANADIAN
Commission
New York Stock
Banks
SECURITIES
Members
INSURANCE STOCKS
Markets
Dealers,
Chase Manhattan
YORK 5
34 offices from coast to coast
TltrTYM NY I-Z262
COiUKNHAM
THE
York Stock Exchange
120 BROADWAY, NEW
To
BANK AND
Members New
CXCMANOE3
BOND DEPARTMENT
REQUEST
Harris, Upham & Cs
OF NEW YORK
Company
ANO AMERICAN
Bonds and Notes
"MARKET OUTLOOK
FOREIGN
&
FIRST
Public Housing Agency
COPIES OF OUR
INDUSTRIAL
HAnover 2-3700
CHEMICAL
BOND
w
MUNICIPAL
AND
,
* j
Boston banker presents:
dollars exceeds the cost is
write up
$
Committee,
Boston
Investment
Old Colony Trust Company,
in
trying to force Israel into action it does not want ;
to take.
our
value,, the attendant devaluation of the monetary unit
and the market recognition of purchasing power erosion,
the least about
say
employed by
of
,
Copy
a
By ARTHUR L. COBURN, JR.*
Chairman, Trust
Govern¬
ment, the false assertion regarding claimed gains in
capital value, and the unconstitutional denial of fair
return on investments; are some of the subjects discussed
by Mr. Chamberlain in tracing the consequences resulting
from the use of lawfully created unequivalent dollars.
The author notes the reduction in the monetary standard
of
wisdom
Israel will not
real
Saratoga, Calif.
country and abroad about the propriety
the
/
Natural Gas Company
Director, American
Cents
Investing (oz Pension
And Profit-Sharing Trusts
Capital Gains Myth
By WILLIAM CHAMBERLAIN
hoped that the current controversy
40
Price
N. Y, Thursday, February 28, 1957
<orporati071
STOCK EXCHANGE
NORTH LA SALLE ST.
CHICAGO
IRA HAUPT &
mod ether
111 Broadway,
40
Exchange Place, New York 5, N. T.
Teletype NY 1-702-3
WHitehall 4-8161
CO.
York Stock Exchange
Principal Exchangee
Members New
WOrth 4-6000
N. Y. •
Teletype NY 1-3860
2
The Commercial and Financial Chronicle
(990)
The
Brokers, Dealers only
For Banks,
Security I Like Best
A continuous forum in which, each week,
advisory field fronr all sections of the country
participate and give their reasons for favoring a particular security.
FOR SERVICE
(The articles contained in this forum
they to be regarded,
are
"Hanseatie's"
lar^e trading
U
w
and
department
long experience as¬
sure
of reliable,
you
X
...
Teletype NY 1-40
WOrth 4-2300
BOSTON
•
is
appears
been
overlooked
the
Operating
in
advance of
future
Specialists in
cent
years
rate increase. In
relief
Strengthening
apparent change in gen¬
eral
SCRIP
months.
have
ftfcpONNELL&fO.
Members
York Stock
Exchange
Stock
Exchange
BROADWAY, NEW YORK 5
fallen
more
constructive
toward
out
At
13.4
Trading Markets
per
Bank of Virginia
By
on
stock
one
predictable
1958
tinuation
is
by
likely.
1
LD
million
(a
For
A.
Sutton
of
the
signifi¬
Circuit
polyethylene)
is
production
begin
gas
in
for
by Union Carbide.
months
operation
earnings of about 22 cents
are
even
without regard
earnings.
on
$1,000,000
+v,rt
a
of
hpionr-p
previous
and
year
Gas
equity
wpc
caoital
obtained
20 -times
Gas is
and
through
million,
$700,000-3750,000
there¬
obtain
about
income
net
ftreeueo^CompaTU^
37 Wall St.,N. Y.
Tilal
company
dential
plus
Tel. HAnover 2-4850
1956-
1952
^
V
Yucca Uranium
%
iiies.
2.072
$2.31
4,078
2.03
1.50
34,192
4.073
3.625
2,005
1.81
1.40
28-22
4,017
3.625
2 000
1.81
1.40
25-20
3,657
1951-56
^667
60%
3,657
2.000
SI.60
1.83
3,667
2.000
133-25
29-25
1.30
40%
1.84
24-21
1.30
23-19
Is
at
annual
rate
indicated
at
year-end.
+Priees
rounded.
SlSotJ-sl*
to date.
TABLE
price
Present
and
growth
year
Direct Wire
Dlglty 9-3424
trend
Revenue
b
1
a n c e
diversification is
latter represents about 60%
% Increase 1951-1955
245.000
.
load). In the
cial
enterprises
sales.Under
however,
<
MCl )
-
135
74
8%
23%'
49%
Street, New York 5, N. Y.
Urider mr iters—D istributors
Dealers
tins
Investment Securities
-
,
'
i
Canadian and Domestic
'
reduced
conditions,
not
is
as
and, if there is any major slack¬
ening in industrial activity, every
will. be
made
effect-
to
Since 1932 Specialists in
a"
revival. A further cushion is pro¬
vided by local wage rates which
VIRGINIA-WEST VIRGINIA
NORTH and SOUTH
'.
hour
(basic rate) are
higher than the national average
of
per
$1.93
layoffs,
have
hour.
per
tiated
fore,
many/wage
benefits
of
Annual
last
and
Rates
gas
in
850
nation.
company
chiefly
balance
and
A
Texas
extending
smaller
z
«s
IjgKj
■%
m<ak\
r>
*avihG*
through
amount
is
pur¬
from
1955,
life of 25
years
and
equitable's selling prices
average
per
cost
of gas
about
MCF, including both
system produced
N. Q. B.
OVER-THE-COUNTER
INBOSTRUL STOCK INDEX
18-Year Performance of
35 Industrial Stocks
FOLDER
ON
REQUEST
.
.
The
is
and
Gas
neer
•
Eastern
independent
pro¬
ducers in the Appalachian area.
System owned wells have an esti¬
gas..
;
of
requirements is obtained
Tennessee Gas
contracts
.
A 84
Virginia
from
Transmission
on
The
RH 03
WOOK ">Oe
Pennsyl¬
West
Teletype:
-
requirements.; It
Kentucky. Wells in the latter
the
System
;
33%
state are considered by company
geologists to be among the richest
in
RICHMOND, VIRGINIA
Bell
"Telephone 3-9137
produces about
about 450 wells in
and
CRAIGIE&CO.
activity.
Supply
own
•F. W.«
nego¬
in past period-of
was
Equitable
its
Guar¬
purchasing power
as
severely im¬
be
business
Gas
MUNICIPAL BONDS
Areawise, there¬
year.
it
as
the
Wage Plan
consumer
reduced
and
during
earners will
the
anteed
CAROLINA
Even
Storage
company
in
has
developing
been
a
pio¬
Continued
National Qntatira Bateau
underground
88 Froat Street
*
~
37 Well
great a
threat. Both political parties have
vested
interest
in
prosperity
Customer
226,000
Broadway,N.Y.6 COrtlandt7-5880
a
the
$110
Branches
Bankers
of the
past,
have
present
this
purchased
166
1897
Tokyo —10
Investment
<£
Burns Bros. & Denton, Inc.
i.e., heavy industry is curtailed;
unemployment ensues; commer¬
Per Residential
Customer
111
might have imparted a snow-bailing type of earnings contraction,
*
1951:-
Office
Brokers
well
26.0
Customers
1956
*
d
have been on a reasonably satis¬
factory basis. It is estimated that
Av?, Annua! Pev.
Established
Home
although admittedly,
many
consumers
are
dependent
upon
the fortunes of heavy in¬
dustry,
particularly
steel
(the
a
43.5
Per Residential
\
''
'
Yamaichi
forth
55.3
Total
write
six-
a
set
are
Since the rate increases granted
Avg. Annual I'se
1
Exchange PI., Jersey City, H. J.
Htrterson 2-857S—Teletype JCY 119
showing
longer.
System Growth —1951-1956
or
^
.
Securities Co., Ltd.
in table II.
28 cents
CAPPER & CO.
Call
•' *
information
diversification
revenue
tabulation
a
15
I_
,
'
current
commu¬
3
Commercial
,
con¬
24
Industrial
remaining at practically stationary levels for three years now
appear to be stirring due l
to improved
Japanese economy.,
*
the resi¬
gas
after
For
The
gas.
of
in
Other
•
55%
66.1
*
STOCKS
T.
.
Pennsyl¬
vania and adjacent West Virginia.
Cents Per MCF
c
branch offices
Southwestern
mated average
II
1!».V» Bssic Gas Fates
Philippine Oil Development
natural
commercial
than 200 other
in
chased
'Dividend
this.,,
or
Pittsburgh and environs
more
1975.
23%
Revenue Diversification
•
of
nities
Price
Range
2.007
Lost Creek Oil & Uranium
•
*
$4,7P2
Brown Allen Chemical
•
♦
Div.
4.521
27.394
incr.
ranje
American Tidelands
Earn-
$5,151
28,789
1951
Oklahoma Oil
No. of
Saares
32,228
___
1953
jjP
Balance
fur Com.
39,541
1954
A
"t Sh"-» Comro""-
Net
$43,804
1955
of
serves
and
sumers
owns
Income
Revenues
recognition
distribution
per
I
\-
our
JAPANESE
Equitable
more.
Equitable Gas became publicly
owned in March, 1950, although
through predecessors (merged in
1925), it dates back to 1888. It is
an integrated gas
system, engaged
in
exploration, production, pur¬
chase, transmission,' storage and
vania
1930
or
k
(4) Management of the company
TABLE
Direct wires to
The Company
of
ESTABLISHED
market
ate
year.
-(000's Omitted
f
combination of both, and
in time there should be appropri-/
paired
$1
NY 1-1557
Birmingham, Ala.
Mobile, Ala.
New Orleans, La. -
a
should, not
fore, Equitable will
HAnover 2-0700
a
Good quality integrated gas
companies generally sell at 14 to
15 times earnings and chemicals
investment
of
analysis
business
borrowing by the operating sub¬
For its relatively modest
similar
a
advantageous
provided
very
sidiary.
the
to
operating at
load factor.
Equitable
final
tne
Stock Exchange
19 Rector St., New York 6, N. Y.
considera¬
7 (5)
at $2.20
basis.
in
American
regarded.
enterprise is
largely the lengthened shadow of
competent executive personnel.
effort
arranged
(2) Results for 1956 of $2.31 per
were
14% higher than in
the
$9
The financing of this plant was
$1.60
share
Vita Food
in
now
ethane
produced
eight-nine
share
100%
pay-out policy of at least 70%
that an increased rate is
posr
improving
United Artists Theatre
extract
of
a
so
sible
O.
to
highly
important
an
since
expected and, com¬
mencing 1958, the first full year
of operation, about 35 cents
per
.
to
plant
completion.
A
company
to
increase
new
a
plant
in 1957,
per
represents
a
pay-out of about 70% compared
with 75% in recent years. Man¬
agement apnears to be committed
Maule Industries
years.
April, ,1957. Total output has been
situation,
especially
are
City. (Page 3/1
and
successful
share with the plant
following
dividend
Corp.
probable
from
contracted
then rise to 5.8%.
tion
weather
past two
is
industrial
scheduled
(1)
The
better than
average
yield of over 5% on the indicated
Carlisle
con¬
during February,
component
from
33
Trading Markets
favor
now
un¬
would
temperatures in the
approaching
results
cant:
Tele. LY62
an
it
normal
area
The
(3)
the end of this
The yield would
-
Lynchburg, Va.
is
but
the
normal
earnings
per
Of the many favorable features
inherent
in
this-
Mason, Inc.
the
of
company's
1957.)
dividend.. of $1.60 af¬
better than average yield
5.2% and an increase to $1.80
rate
earnings
range forecast predicts colder
a
annual
earn¬
(The U. S. Weather Bureau in its
long
than
share
of
conditions
is
per
to
course,
factor
that chances
seem
of the
earnings of $2.70
result¬
a
upon
obstacle
period. This, of
selective
a
Gas is
offsetting
one
1955 further rate
progress was higher than seasonal
temperatures during the 1950-1954
a
taken
easily reach $3.00.
year
Scott, Horner &.
and
Present
fords
Colony Life Insurance Co.
favor
attitude
Another
selling at
earnings of $2.31
share but only 11.5 times esti¬
could
Company
recent
1956
1957
of
First
the
mated
Alabama-Tennessee Natural
Gas
31,
times
share.
Inc.
of
purchase
basis Equitable
best.
Air Control Products,
which
neglected
for
better guide to
power
than
in
effect
Quoted
Stern,
most
ings. A period of relative stability
in pipe line gas prices is now in
prospect.
;
issues, chiefly
utilities.
All
things • considered,
this represents sound market pol¬
icy. As a group, utilities have not
been over-priced, and are attrac¬
tive
2-7815
the
obtained with
was
favorable
ant
Many stocks which pre¬
had been avidly bought
viously
Since 1917
psychology
taking place in
been
be¬
our
investor
has
.
for
suppliers, with only
Beckmann
J.
overdue.
an
earnings
.is
V' ;
to pay substantially
higher
prices for gas purchased from its
is
capable
at
1957. A
had
more
a
lief is
TEL. REctor
-
those previous. In each year from
1950 through 1954 the company
re-
market
American
fact
summary.
results
recent years are a
general
valuation
120
'
1
earnings
given in table I.
realistic
New
the
of
Company's out¬
totals 1,210,000
now
nuiom
market
i.
Forum,
gain could be achieved in
and,
RIGHTS
Shulton
this
omitted
six-year
CHICAGO
Principal Cities
to
Wires
Private
in
was
that the
criterion,
have
Bought—Sold
Irving"
—
Members New York Stock Exchange *
inadvertence in last
an
article
mention
shares.
to
Company
Steiner,Rouse&Co.
This
Through
week's
dividend rate pro¬
yield, is well
by
' '
SAN FRANCISCO
«
PHILADELPHIA
New York
is
if
stock
York 5
Louisiana Securities
James
—
'
Shulton, Inc.
gradually. The
Exchange
Stock
American
,
120 Broadway, New
Company
New York City
attractive
past
Gas
Beckmann, of Hallgarten &
Co., New York City. (Page 2)
K. GUTMAN
Research Economist
be increased
1S20
Alabama &
T.
payments will
Member
Associate
WALTER
earnings, and,
the
Equitable
nor
United. Biscuit
standing stock
any
Corporation
and
Selections
Komanoff, of Herzfeld
present
an
be,
to
liable
Equitable Gas Company
covered
New Yorii Hanseatic
Week's
PdNitipants
Their
sell the securities discussed.)
to
Exchange
Slock
York
intended
not
are
lew York
New
Members
vides
i
offer
JAMES T. BECKMANN
The
Established,
as an
Equitable Gas represents an ex¬
cellent
investment
opportunity.
prompt executions.
of experts
group
Thursday, February 28, 1957
.
In the investment and
Try "HANSEATIC"
because
different
a
This
Forum
..
on
page
32
NewYert8,ILY.
.
Volume
185
Number
5616
.
The Commercial and Financial Chronicle
.
.
Current Developments in Federal
INDEX
licHifiMin
B. S.
Articles and News
Page
MM
The
Chairman, Securities and Exchange Commission
'
■'
<
-
i
;
-
-
*
:
;
•
Detailing the abuses with which the Commission is chiefly
concerned, and for which remedial legislation is contemplated,
SEC Chairman cites influx of dishonest brokers
of
"boiler room"
sales
activities,
■
.
:
*
and
of
securities
"
ROCK 'N ROLL
*"•
•
with
i
3
glee—after selling
4
McQuade_
__
obsoletes
your
me!
to
-
Supply of and Demand for 1957 Long-Term Investment Funds
—Girard L. Spencer_._
;
i
4
Federal
ducing legislation for broadening
coverage of companies traded
over-the-counter, with the elimination of the exemption previ-;
ously given to insurance companies. Under Commission's
Company, Act jurisdiction, discusses prospective
policies regarding capital ratios and optional features. *
of
,of
vital
importance to the securities
mar-
number
kets
beginning to
are
head.
matters
Some
these
of
tcrTT^gure Ibee. fair,
markets:
counter
the
of the
tion
public
Commission to
with.
to
a,
of
abuses
11 h
I
referring
a m
-
dumber
tages,
arisen
fraud
in
the
past
several
years
which
we
of
company
The
and
in
1
Oh,
misrepresentation and
the
purchase and sale of
are the statutory
There is nothing
l^e Federal securities laws designed, to impede the raising of
of capital. These laws if well nrlministered should help, not hurt,
the capital formation process,
Capital is formed only by the
our request
and some introduced■'"'voluntary cooperation of the pubas a result of the hearings of the
lie, and the work of the ComSenate Committee on Banking and mission is one of the factors givCurrency on the stock market, in 4n2 tbe public confidence in the
the Spring of 1955^ will have to be
integrity of the capital markets,
acted upon
by the Congress or You cannot have capital formation
passed over at the present session. Without vyilimginvestcrs,
In addition to these major subIn approaching problems, najects, I will also touch brieflv on turally differences of opinion ocseveral problems which the Comtur between the Commission and
mission has been considering un- the securities industry, and beder
the
Public
Utility
Holding tween different segments of the
Company Act of 1935 which should industry,
as
to administrative
be of particular interest to
anmethods and procedures or busialysts as investors. I am referring ness practices and conduct. But
here to our study of capital ratios
we aU share one comnion interest,
and to our present policy in rethe investor. If the Commission
gard to optional redemption pro- cr the securities industry fails :to
visions for preferred stocks and serve the investor, or serves him
bondSi issued by companies under hadly, the nation is the loser,
our
Holding Company Act jurisAt no time in the Commission s
matter of
a
....
....
len
o
at
l.st
.
fir,?
i!)
I:
°? ,f Congress xp esse
t
statutes administered by the Securlties
and
Exchange
the. dollar
Commis-
enacted
1940
in
were
public investors
corporate
in
offered
securities
Jecent
g3
m
basic
and
business
formation
issuing
about
them;
financial
and
the
s
tojrrovidejxgula-
(h/
to
Durl
1950 it
waE
As
bm|on
We
Bank
Pulp
Co.
1
Teletype NY 1-4643
Exchange Place
Jersey City
Wires
Money"
HE 4-8504
•
'
Salt Lake City & Denver
to
21
Manufacturers
of
Broadway, New York 4
Products Forecast by Eric
"Survey" Analyzes "Tight
Urges
$8.2 Billion
22
Aztec
Poor's
Oil &
Gas
22
Launches
New
500-Stock
Golden Crown
Stock
Hourly
Mining
46
u
See
and
It
Western Gold & Uranium
46
^
.
(Editorial)
____,Cover
Stocks
Insurance
8
8
Singer# Bean
&
15
13
Washington Ahead of the News—Carlisle Bargeron_
Indications of Current
Mutual
NSTA
Business Activity.
Funds
Notes
43
——-
—
40
inc.
Exchange PL. N.Y.
Teletype NY 1-1825 & 1-4844
Direct Wires
8
——
News About Banks and Bankers---
Observations
Mackie,
HA 2-0270
44
-—
Our
Reporter
Philadelphia
*
Chicago
to
Los Angeles
*
14
A. Wilfred May
5
... —
Our
Reporter's
Public
Governments..
on
22
Report
32
Railroad Securities 1
Securities Now
Securities
in Registration.;
Salesman's
The Market
$4 5
.
.
.
40
Corner—*
Cumulative
35
Participating
Preferred Stock
16
Best
IN
2
State of Trade and Industry.
The
Credit Corp.
36
Offerings—
and You—By Wallace Streete
The Security I Like
na-
34
—
Security
Prospective
Equitable
42
_____
1,---—...
Securities.
Utility
4
________
Washington and You
EACH YEAR
since
48
the
issued
stock
In
was
1946
rmnn
Continued 071 page JU
1
"
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CTflPlfC
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Copyright 1957 by William
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CHRONICLE
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thc
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•
19
19
Franz
Dealer-Broker Investment ltecoriimendations
Spencer Trask & Co,
Boston
J.F.Reilly&Co.,Inc.
(Boxed)
Averages
REctor
•
17
;
25
Albany
and
Coming Events in the Investment Field-
rULlllllllLII OlUUlVO
BROAD
Rates
Pacific Uranium Mines Co.
tional product annual rate figure,
have
25
SULPHUR
12
Regular Features
$]3 j
n
TELEPHONE HAnover 24300
Interest
i r-fti
from
For many years we
'
VA
Trillion Dollar 1977 Economy Expected by Austin Kiplinger__
dolIar amount
registered was about
?400
SULPHUR
ff
Association of America
&
INTL.
WYOMING GULF
17
■—.-w-
Market
Securities
195g
£rom m5 t
1957.
"
14
King____
Higher
Disputes
Association
Published
1
TEXAS
20
Trust
Standard
.
specialized in
13'
the National Economy
f.i
Market for Paper and
ers
tht. average.
Qf
STANDARD SULPHUR
12
Budget Slash
average
bmj
address
11
Mortgage Repayments Termed Excellent by Mortgage Bank-
*el
corporations
Analysts, New York City, Feb. 20.
th
,
Moyer Kulp
Gartley___l____________l_
Purchasing Agents____
Protest
$2.5 billion, and in some years was
billioll. In the postwar
in-
by .Chairman Armstrong
before the New York Society of Security
An.
the
1953
isca,
Sober Warning!
National
the comparatively
,
sec'urities
of
traded on n
tional securities exchanges certain
listed
issues
SULPHUR
seeurities
by
in
fiscal
., .
and
under
f m3
biUion
$7 5
new_ issues o
interstate commerce and
in
8
A
the years 1933 th ough
imenaed to piov de to
of
amount
reg;stered
The Federal securities laws
sion
MEXICAN GULF
10
Lagerloef
has taken place in a relatively
sbert period of time. For example;
s,
Urges
Cites by
Shull
G.
Guaranty
experience
have activities
and
prices in the securities markets
reacbed sucb highs." This upsurge
..
..
o
-
7
Johnson
Pressure
Huge
pending for legislative decisions by the Congress as
to whether they should be. Legislation, some to be introduced at
-As
i5*
WHitehall 4-6551 '
GULF SULPHUR
*
Depreciation Views (Letter to Editor)
A
are
diction.
7
(Boxed)
C.
Frederick
present statutory powers of the
Securities and Exchange Commis-
sion, but
G.
STREET, NEW YORK
Program
Lower FHA Down Payments
Price
country.
our
M.
WALL
Telephone!
6
•
These
Capital formation is tremendously important to the economy
ot
No?
George
IIelpin" Capi,al Formation
the
6"i
Schools—Roger W. Babsoh_l_
Soviet Outlook—Herbert
99
9
Unified Transportation Policy and
—E. Roland Harriman
::
objectives.
have
within
not
are
holding
manipulation,
"pools,"
of prices, insider advan-
securities.
been vigorously coping. Others involve mat-
which,
utility
against
rigging
ip
securities
e
the financial structures
of
markets which
have
ters
State-Local Taxes and
systems; to provide regulation of
investment
conlipanies to assure
adherence to standards protective
of public investors, and to provide
deal
J. Sinclair Armstrong
Financial Public Relations—H
Obsolete Securities Dept.
'
feobleigh_____i______
Accelerated
an
Outlook for Corporation Profits—A.
cot-
Securities and
5
:
-
Executive Leadership Shortage and Barriers
Against Women
v —Mrs.'
Charles U. Bay___
;
nvor-the-
provide
to
or-
Um-
Exchange
-
Competitive Nuclear Power and
-■f
—Willis Gale
porate simplificationaftqphysical
lhTegrafioii and continued regula-
au-
•
thority
of
regulation
a
;
Mills„J__.:_____4._____L_________
Three Province Petroleum Play—Ira U.
and
open
Herlv markets: to"" provide
a
existing
regulatory
,
tion of the exchange markets so as
within~"Ifed
are
the
i
to
come
Policy and the Economic Challenge
Achieving National Solvency by Wise Use of Federal Money
....
—Hon. Margaret Chase Smith
-
Holding
A
Tax
—Hon.-'Wilbur D.
'
*
*
____:.__Cover
The Economic Outlook—Edward A.
dealers,
AND COW ANY
___L___Cover
Current Developments in Federal Regulation of the Securities
Markets—J. Sinclair Armstrong
"
under claimed but not available exemptions, and unwarranted
reliance on the "no sale" rule. Announces plans for re-intro-
resurgence
sold
Capital Gains Myth—William Chamberlain
Investing for Pension and Profit-Sharing Trusts
—Arthur L. Coburn,
;
By J. SINCLAIR ARMSTRONG*
3
(991)
New
York
funds.
80 Wail St., New York 5 • B0
9-1800
4
The Commercial and Financial Chronicle
(992)
is building up, and highly
significant is the invisible backlog
represented by projects; being de¬
ferred
because
of tight
money.
New
orders
for
practically all
types of machinery continue at
high levels, and there is also a
heavy backlog of machine tool
orders. It is conservatively esti¬
mated that expenditures on plant
and equipment in 1957 will in¬
crease
in, the
neighborhood
of
$41/2 billion over the 1956 figure.
The current rate of such expendi¬
tures is higher than the average
lor 1956, so the projected levels of
1957 can be reached with only a
small increase over the present
rate of expenditure. *
T
•
Actually, the demands for labor
and materials are so great That,",
on
this ground alone,'< there • is
little leeway for substantial in¬
crease
in
capital' expenditures V
over ; present
levels. A consider- :
able
proportion
of
anticipated •
1956 expenditures have, for one «
reason
or
another, been carried forward to 1957
; v and
already, -
...
Thursday, February 28, 1957
.
work
The Economic Outlook
EDWARD A. McQUADE*
By
Corporation
Vice-President, Equity
leveling-off period
—which may carry on much longer than through 1957—is
anticipated by Mr. McQuade in weighing variety of economic
forces at work, including the changing foreign situation. The
author sees the $411 billion 1956 GNP increasing moderately
to $428 billion based on such expectations as rising prices
and: (1) increasing capital expenditures and backlog, aided
by some postponement of 1957 plant and equipment expendi-hires until 1958 which should prevent sharp 1958 decline and
be
The likelihood that 1957 will prove to
a
.
..
_ ,
-lighten inflationary pressures; (2) neutral affect of housing
starts on GNP; (3) consumer expenditures at least equalling
.
:
(5) government increased outlays.
are-"close to the top in yields" that in a number
industries capacity is more than ample.
of inventory position; and
Believes
we
of
The
1956
year
highly business
substan¬ pressive.
was
in
a
despite a
tial decline in automobile produc¬
prosperous one,
making
im¬
is
them
...
.
This
showing has been made
despite the fact that money rates
1957 plans are being postponed to
are higher than we have seen for
1958. This is all to the good, as
many
years
although not
it lightens inflationary pressures,
high by the standards that existed
and
makes
it
more
likely that
prior to the 30's. The demand for
Instead of facing in, say,; 1958, a
long-term funds has exceeded the •;
sharp decline in these expendisupply, and some of the excess has
tures, there will be a leveling off
been satisfied by borrowings from
over a period of time.
v.
banks
with the result that!
.
tion and construction of non-farm
h o
in e
anu
s,
.-minor
U
s e
backs- in
.
tex-t
tiles and farm
mach ineryi
the
Yet
effect
of these nega-r
tive
.
sumer
funds than
non-dura-
for
local
such that
a
approximately $411
billion, as against $391 billion the
preceding year
an increase of
peak
new
of
.
.
is
conservative banks
condition
a
where
commitments
loans in amounts
on
.
will
that
5%.
fact,
acquisition of practically riskless
paper. Some of the great life in¬
surance
companies are not only
loaned up, but have made forward
business
investment needs. GNP reached
in
they feel unjustified in adding to
their loan portfolios except by the
govern¬
ments; and by
E. A. McQnouc
to
in recent
seen
situation,
some
close
are
have
we
The
years.
"bles; heavy
spending
on
the part of
utilize
all
the
lendable
,
,
The
Federal
Index
Reserve
funds
they develop over the next
a half.
Most commodity prices — both
of
Production averaged 143, as com¬
pared to the 1955 average of 139.
Employment
lion
the
at
of
materials
raw
from 64 mil¬
1955 to 65 Vz
rose
end
and
year
higher.
—are
finished
and
Finished
largely due to increases in
unemployment representing only
about 3V2% of the labor force.
labor
costs in
.
.
about
to
from .,$78.50,
5%
.
week
a
the decline
in
farm
The
big sustaining factor in 1956
was the tremendous expenditures
for
plant and equipment, esti¬
mated, at almost $35 billion, com¬
pared to about $29 billion in 1955.
less than 4% since the
f\
of
making no attempt to ease the
tight money situation, feeling that
greater
-quantities
of
credit
cheaper prices might lead to
inflationary
outburst
which
turn could
well result in
a
at
an
in
severe
economic set-back.
Although
about
high
scarcity,
that
note
30,
total
of
loans
1956,
$40.6
Market
One
News
and
Advisory
(Established In
Fill
in
Coupon
10
Comment"
issue
below
Trial
ended
increase
$15
in
$5.00
in
Print
will
The
factor
the
steel industries.1:
and
power
industries
slackened.
Some
new
unemployment : in the food
processing, apparel and electric equipment industries occurred in
Illinois, North Carolina and Pennsylvania.
.
•
*
•
,
.
-
In the steel industry this week steel salespeople have
weighed
the good with the bad and come up with an encouraging
picture.
The outlook for second quarter adds up to;
<
"The
states
This
appraisal
the
of
relatively pleasant
national'metalworking weekly.
Age,"
Iron
steel
market
takes
the automotive and
into
Mills
producing
account
the
appliance industries and
especially hard hit sheet market.
./
.
)
'
v.
./
good cross-section of steel products are
more optimistic than those that lean heavily on sheets and
strip.
At least one major producer looks for his
Pittsburgh area mills
a
at
Accounts
The
1,125,000
cline
the
automakers'
While
some
steel
appears
ingot
in
rate
■
few
A
of
back
likely.
A rate close to 90%
backlogs
outlook
are
over
>■
V
;
;
of capacity
„
the
order
steel
sales
auto
,
is
'
strong spots in the
optimistic outlook in the months ahead
orders;
the. worst
inventories.
are
likely.
more
major producers
indicating that
looking for a sharp downturn in
second quarter, an "Iron Age" survey
indicates that this is not
■
other two
cut
to
observers
of the Big Three is still playing
one
But the
drive
the
are
economy
to
support
an
heavy durable goods
are:
running ahead
of
a
year
ago;
better than a
year ago; new plant and
probably will live up to predictions of a
10% increase over 1956; highway and construction activity are
offsetting weakness in home building and farm equipment buying
is picking up, concludes "The Iron Age."
equipment
Housing Decline
for
industry,
vest.
tonnages,
the
•
for
reasons
the
to
booking substantial
very
For
main
close
in
high, being
exceeded in terms of units only in
1950, 1954, and 1955; and due to
higher costs, the actual
dollar
volume in 1956 was the highest on
record, except for 1955.
de¬
first, shortage of mort¬
money
and, second, the
is
spending
are
.
.
Rising
.
17%
in
January,
12
by the
gage rate
a
amount
same
.
.
rise
business
failures
reached- 1,148, a
.10% greater.than
5
or
the
years,
basic
the
first
to
Affecting
and
plete
consider
1957,
housing
somewhat
total
under
because
but
struction
contracts
are
running 20% ahead of
ably be spent
of
be
the
be
A
substantial
currently
on
of" such
of
the
run
at
past
102%
on
Friday last.
February auto assembly 80%
com-
.
entire month's United
of the scheduled 567,000-unit vol-
>
week,
the
1
a
in
1957,
or
increase
GNP.
"
Consumer
expenditures
expenditures
as
(other
;
,
Employed
(Billion)
(Million)
$2365
266.0
'Last
Despite
quarter
full
high incomes,
industry's present first quarter peak of 2,129,018 was
1955, the next-best count being 1,610,751, hit in 1951.
60.7
•
on
dip in United States assemblies
a
is
estimated
at
132.000
units
compared
with
Ford.
133,000
...
Industry passenger car assembly, including Chevrolet, is ex¬
pected to return to the 145,000-unit level this week in keeping
with plans to produce an average of 28,300 units daily in March
compared with an estimated 28,920 in February and 29,200 in
January, "Ward's" declared.
The pattern of five- and six-day auto
assembly continued the
past week, with Plymouth, Chrysler, Ford and Lincoln scheduling!
65.3
figure
employment
Continued
a
145,846 the preceding week, attributing
month-end adjustment by Chevrolet,. February output of
reporting to Dun & Braastreet, Inc., January building plans were
valued at $415,994,396.
While this was 8% above the December
estimated
consumer
noted
64.2
254.0
-"lOSe
performance ;
A spurt in construction
activity boosted January building
permit values above the previous month's total, but volume fell
short of the unusually high level of a year ago. For the 217 cities
Number of
Expenditures
the second-best January-March
Saturday work at certain plants.
homes)
during re¬
-
,
1
for
follows
calling for a similar edge over last;
planned at 1,814,000 units or 4%.'
is
138,537 last week from
it to
in
•
and
The statistical agency
to
causing
not
an
1956
output
in
Chevrolets
decline
schedules
quarter
.
Consumer Expenditures
*
than
reached
As
the
first
for
standoff
March
year,
The
equal
regards the effect on GNP,
therefore, housing starts will be
and
j
expendi-:
page
•
-
555,596 in like 1956.
increased
enlargement and
year ago.
backlog
with
of all-time.
modernization.
1955.
a
will
that
;
year,
more
•
that
size of many new homes, plus the
substantial sums which will prob¬
the
con¬
total
With
.
will
starts
1956
expenditures will
1956
to
and
Business
peak, increased
eating and drinking
January netted 642,090 car assemblies as against 612,078 a
ago, with the February count projected at 578,370 compared
which is approximately the figure
for 1956. I am assuming that dur¬
either
important
is
the month-to-month
postwar
a
putting both January and February above the same months
ume,
last
said
Friday
on
States
likely to average about 1,100,000
housing units per annum'!. v.
GNP
most
casualties, at
February, "Ward's Automotive Reports" stated
with
a
up
#
accounted for
year
a
examine
making
Retail
in January failures increased to
since August 1956, this was 26%
auto industry is confident of a
Spring upturn in sales
scheduling its March production at the same daily rate
is
is
prospects
briefly
iailures.
"Ward's"
demand
normal vacancy ratio)
liabilities involved
The
as
for
housing (arising from new
family formations, replacement of
existing homes, and the restora¬
tion of
ago^it remained below the prewar level pf 1,237 in 1940.
in
and
subject, has re¬
cently stated that "over the next
4
was
.
deal of
great
a
While the toll
from the preceding month in all trades except
the
on
.
Manufacturing and trade
The Prudential Insurance Com¬
which does
year
Current
which will further help the situa¬
tion.
total
debt
postwar high for the month.
will act to increase the VA mort¬
1956,
The
Capital Expenditures. Heavy
still
is
volume
1954
Plainly)
Regular subscription rates—
issues) $30 (50 issues)
estimated
GNP:
Forces
$15 (25
electric
Although unemployment claims fell 3%, they were 6% above
of last year.-Washington and Oregon reported the most
noticeable declines, where layoffs in the construction and lumber
_
_
been
| Name.
(Please
*
~
'
those
In the automotive
years:
| full payment of same.
| Address
declines in the
production
it
1955, a de¬
cline
of
approximately
15%.
Despite
this,
however,
present
cent
factors
herewith,
v
.
in Novem¬
rate
1,330,000
have
to
now
I
Com-
ago.
operate at near-capacity in the second quarter.
The present
operatingrate, is well above capacity and continued strong
for plate,
structural^' and oil country goods is holding
'
the market together with no sign of a let-up.
starts,
steadily,
continued
are
than
chief
enclose
in
mortgage
1957,
and
credit
September,
the
ment"
money
months ended
billion.
for
I
1956
periods
$23.4 billion, a very hefty
figure even though it is approxi¬
mately $5 billion less than the
Turning
Market News and
year
•Increased output of lumber, automobiles and petroleum offset
demand
1956 of 1,060,000. Total units
ber,
of
billion
No. "E"
Offer of "SUfck
a
to
housing
annual
an
against
worthy of ing
is
$3V2 billion, to a
billion; total bank
accept your Introductory 10 issue Trial
| 80 Richmond St". W., Toronto, Canada
<
December, 1954, of 1,500,-
increase in the previous 12 months.
Introductory
Service—$5.00
j Stock Market News & Comment Ltd.
II
$8.4
months
I Securities Advisor
!
in
was
1936)
for
'■
•
bank loans in the 12-month
Servicea
whole in the
on Wednesday of last week approximated that of
week and moderately surpassed the level of the
previous
by month, from an annual
to
cost
consumer
months ended November, 1956, to
a
total of approximately $90 bil¬
lion.. Mortgage
debt
in
the 12
increased
of Canada's leading
Market
great deal
a
(all commercial banks) in¬
creased
Stock
000
it
total
increased in the 12
Nov.
"Stock
has
month
rate
in
.
hear
we
the
its
and
to
which
in
are
decline
research
are
-
Subscribe
the
date.
same
Money
The Federal Reserve authorities
address
by Mr. McQuade before
a
meeting of bankers, industrialists, and
businessmen sponsored by" Pullman Trust
and Savings Bank, Chicago.
a
.
pany,
Cost
"
Offers Investors and Speculators
Great Profit-Making Opportunities!
ended
as
places.
to
Thus, the Consumer Price Index is
up
less than 3% since October,
1955, and wholesale prices are up
expenditures, as you know,
have the most dynamic effect of
all, and the confidence shown by
*An
the
for the nation
$54,060,000, the largest volume
higher than a year ago.
seems
Such
.
period
similar week
have developed in recent months.
up
to be halted.
appears
J
production
productivity. Raw materials are
increases in
labor and
material
higher because of the high level of
costs. The building costs situation
activity at which we have been,
is not likely to be relieved, but
operating, helped along ip recent
the' shortage of money is being
months) by .developments in the
relieved by the increase in
the
Middle East. These increases in
FHA mortgage interest rate from
prices are not as serious as one
41/2% to 5%. Also, it is possible,
would imagine from the general
and even probable, that Congress
inflation psychosis that
increase of about
ap
and
,
.
income
$82.42
Industry
industrial
Total
the
all familiar with
gage
in
Average earnings of workers in
manufacturing industry have
risen
of increases
excess
Index
Business Failures
1
Housing. You
are
higer
.
Price
Auto Production
easier demand from
The second factor to consider is
goods
goods
with estimated
million in 1956
Trade
Commodity Price Index
Food
and
-
.
many
demand
Retail
State of Trade
.
of them are heavily loaned
up; with risk assets representing
much larger multiples of capital
than
offset by: con¬
t
.
Output
Carload injgrs
reading,
,
factors
„was more
.
Production
Electric
.
•
non-vulnerability
1956, if not increasing $8 to $10 billion; (4)
Steel
The
24,
of $386,355,828, it was about 4% below January's $431,—J
357,658. Most of the year-to-year loss was attributable to a decline
in building activity iq New York City.
Five of the eight geographical regions reported larger building;
J
Continued,
on
page
33
The Commercial and Financial Chronicle
*.
Thursday, February 28, 1957
;
5''
(993)
Monday's "Wall Street
Journal," shows 71, or 7o% with
gains over the preceding year.
panies in
Supply oi and Demand (or 1957
Long-Term Investment Funds
Observations.
The decline in profit margins is
importantly concentrated in the
chemicals, due to the impact of
By A. WILFRED MAY
By GIRARD L. SPENCER
special factors including price
Partner, Salomon Bros. & Hutzler
-
Members of New York Stock Exchange
Based
borrowers
mates
THE FRESH CROP OF MARKET "EXPLANATIONS
given assumptions, prominent investment analyst esti¬
on
needs in 1957
About the most interesting as¬
pect of the market's action—with
have less difficulty in meeting their
may
its decline to 15-month
compared to 1955-56. Estimates the defi¬
ciency will be about $1.1 billion in supply of new long-term
as
capital with temporary fluctuations of strain
the months ahead.
Estimates
of
the
supply of and
the
and
for
the
been
future
long-term
to
True
capital in 1957
ac-
of
nausea
forih,
the investment
ward
comniunity's
surance
general pattern used in previous years,
the exception that savings depositsf in
has been qonsi sting
of
with
,
purchases of mortgages: and long*
bank
Time
and
banks
are
the net demands
for
new
capital.
-
savings deposits
in commercial
generally used for purposes other
held
debt
of
United
the
L.
Cirard
Spencer
unpredictable changes in the economic and
picture that could alter these estimates, there are
two recent developments that could have great bearing on capital
[ markets during 1957.
The. first is that, if the current level of
comparatively high interest rates continues, a sizable increase in
the supply of funds for investment in non-government securities
could result from redemptions at or prior to maturity of United
States savings bonds.
The second is that if the market permits, a
substantial amount of long-term financing by private and public
borrowers that
this
postponed
was
,
cancelled in
or
:
.
Based
-
the
on
long-term
new
somewhat smaller
•
than that
4.7% of the estimated total
1956 could be of¬
in
recent
uses.
markets
in
than
1957
was
the
during 1955 and 1956.
It is
available funds may equal
ease
possible that at times during the
or temporarily exceed demand.
year
Since the flow of investment funds and the demand for their
use Is
only rarely evenly matched, it is logical to expect periods
of comparative strain as well as ease in the long-term markets
in the months ahead. However, the outlook for 1957, as a whole,
.
is that there will be
only minor changes in the basic level of long-
term interest rates.
Estimates of the accumulation of long-term funds, and the
.
demand for their
.
and
public
by private borrowers, states, municipalities,
use
authorities for 1957.
revenue
h i
c
U
P
Long-Term Investment Funds:
Insurance
Life
'
i
deduction
of
Billion
funds ..placed
$5.4
policy
in
loans
and
real
Of all the
vanned pronounce-
to this writer's at-
main-
undiminished bullishness (on
Town Meeting" over
WATV Feb. 23),
The Mideast
"crisis," "speeding
worries," business
uncertainty including "profitless
prosperity,"'
tight
money
end
"technical factors," constitute the
inflation
and
Now, midst market "aimlessness"
even the big new aid outlays be¬
ing
in the Eisenhower
blandly disregarded
forecast
Doctrine
__
are
by the attenders
on
if__
2.0
Savings and Loan Associations.
5.2.
Private Pension Funds
i
2.3
funded
Not
with
Insurance companies.
Fire and
*
Municipal Retirement and Pension Funds
1.7
...
Casualty Insurance Companies
0.6
Other Long-Term Funds
''
.
Funds
"
accumulated
by
4.9
individuals, personal trusts,
educational endowments,
and
other
institutions
not
charitable
included
and
in the
above categories
of long-term investors. Commercial bank time
savings deposits-(as noted) are hot included. '.**
..
.
'
-
'
Supply of New Long-Term
S
U
*
Mortgage Financing
housing,
family
mercial
"
.
;
$24.5
construction.
billion,,
mercial
banks
agencies
estimated
have
at
been
11.9
which, amortization
billion,
$1.5
billion
deducted.
mortgage
and
$1.0
and
The
.
and, sinking'fund'
-
offerings
of
$6.2
billion.
.
''
purchases by compillion by govern--
*
memories)
'• -
estimate
preferred and
of.
an
3.4
from
inflation
about
release
week's
-•
of
gross
offerings
7.9
present
the
are
pointed
first
funds
and
the
Now—-since
the
of
the
much
—
the.
be¬
is
made
"over-supply," allegedly existing
and expected, of bonds and stocks.
Much is made of the glutting ef-
:
(?)
this
tional
that
out
it
place,
such
and
squeeze
a
buyers
here, and
abroad,
periodic stock-acquiring
techniques—which have now sup¬
posedly all suddenly flown-thecoop to another planet.
be
must
has been the subject of temporary
worry
of
many
the4 Dow Jones Industrial
erage
Av¬
will probably almost equal
1955's record peak. In its regular
review of the earnings of leading
and
new
exactly half the
companies reviewed had a profit
ratio greater than in
1955, but
with 60% showing a higher net.
The Digest of Earnings Reports
irregular;
that
The
doings.
be
must
comment
cance
uninitiated
of the break-through pelow
D.-J.
level" (on that the
.
reader
Struck by the wealth of
on the ominous signifi¬
crucial
the
find that the results were highly
460
"support
lqwer-they-go,,
,
..
the lower-wiU-they.continue thesis), followed by
bullish
ket's
the conversely
interpretation of the mar¬
sudden turnabout
Continued
tabulation of 94 com-
to 469. in
on
page,
Febrtiary 25, 1957
WE ANNOUNCE THE MOVING
"
'
'i
■
-
:
'
OF OUR MAIN
OFFICE
Bureau
r
'
20 BROAD STREET
this
of
Price
of
NEW YORK 5,
N. Y.
Dlgby 4-9600.
Business
every
potential doubt
into
being
by
the
psychological turnabout.
Smith, Barney & Co.
Members New York and other leading Stock
Exchanges
And this too applies to
confidence
$23.2
in
the
the former
earnings pros¬
that is
growth
industry. Whereas previously "the
.iky'1 was -the' limit on the- longpects
of-. $10.3. billion.
llndieated Deficiency .of Long-Term Investm'i Funds in ,'57^-^.,$1.15
sell-off
toward
relation
r
Writeoff
Sudden
Seemingly
increase, in outstanding debt obligations,
stocks offered for cash after the deduction
billion of maturities, sinking fund and other
Demand, for:Long-Term- Funds._w
the
Highlighting the investor's'psy¬
chological aberrations in double-
about the business future has been
"
the, net
$2.4
issues.
form* too,
community's
Prospects
common
estimated
retirements
.'
of
investable
tween
available
that
galvanized
Corporate, Foreign, and International Bank Financing.
The
In
sistently staked its extended bull
rparket confidence on the. infla¬
tion-dollar-depreciation bulwark,
now professes simultaneous fear of
during 1955.
estimated at $2.7 billion,
estimated at $0.1 billion from gross
-
in attitude
supply-and-demand
increased volume.
showing continuation of the
rises after the anti-infla¬
tionary 'Stabilization,
registered
'
•
investment
the
swings
which the newly discovered onset ceding bullmarket argument, or
0f "profitless prosperity"
is de- "explanation," which stressed the
{ailed midst data indicating de- insatiable demand from the conchning
profits
in the face of stantly-fed mutual funds, institu-
Index
purchases
and commercial bank.purchases
*
ominous
|estimate of the.net increase after the-deduction of retirements,
repayments
:
-
are
recent
other
State, Municipal, and Public Revenue Authority Financing
7
earnings
True to its irrationed
spending is not all milk and honey.
Thus Wall Street, which so per¬
Labor Statistics Consumers'
borrowing for 1- to-4buildings, and com¬
mortgage requirements
farm
Gro/8
from
repayments -estimated. at. $10.1
.
ment
*■
at
with
re-indicated
growth.characteristics?
both.inflation and deflation.
_
dwellings,
Profit-Less
line
Humphrey thesis that the fail¬
ure to stop spending-and-inflation
comprising a
may bring on that "hair-curling"
unpleasantness, to reiterated cau¬
tioning from the suddenly revered
Mr. Hoover (apparently entailing
talk
______
multi-family
industrial
.and
estimated
are
and-
.
""The estimate of the net Ihcreasd in mortgagd
**
;*
*
Funds.....—...J—ij; $22.1
S
E
-.
tently
stocks demonstrates with
Company, investment counsel,
*-
ascribed chiefly 4o its interpreta¬
tion of statements from Washing¬
some
State and
'
in-
companies, David L. Babson
quotations.
'*•
the
Mutual Savings Banks........
.
du
times over the past
20 years— occasioned principally
Oscillating Market Interpretations
by corporate tax hikes and up¬
of Tight Money
ward wage contracts. But business
five chief "reasons" offered for
The interest rate constitutes anmanagement has always been able
the public's ruling market pessi¬
to
make
the
necessary
profit other "explanatory" item entailing
mism.
Let us examine each of
margin adjustments—perhaps now self-contradictory interpretation of
'
'
'
"
'
these supposedly "newly found"
Midst the
validating the new Eisenhower stock market effect.
developments.
Budget's
premise
of
corporate first few months of 1956 interest
•
rate hikes were accompanied by
profit maintenance.
War Bullish and Bearish
rising stock prices, as was the case
War threats at the time of up¬
in September—the view then ex¬
The Actual Earnings Results
ward market movements are cited
being
that
tightening
In -the second place, objective pressed
as a bullish—not a bearish—facior
scrutiny of
the
actual
returns money was a welcome manifesta¬
in the light of their stimulus to
tion of booming business.
belies
the
existence
of
general
defense spending and "inflation."
uniform profit decline.
That "Technical" Escape
j.
Ahd so in the case of the current
Despite special seemingly non¬
international tension :—tthc market
As usual when the going gets
inroads / on
Chrysler,
climbed to
its historic all-time recurrent
rough on th§ explanations, refuge
high a month after the Suez Westinghouse. a n^d < Bethlehem is being found in the so-called
tropble got- real .hot last summer. Steel, the total average earnings "technical" area of the market's
ton's real Big Brass, ranging from
estate
holdings.
*
Allied^
Monsanto,
.
The Street's onset of jitters was
*
After
in
of 1956 losers has suddenly become
permanently bereft of its persis-
up-
life
"Junior
PLY
;
the
Prosperity Has Gone
In
.
.j
Companies._v__...
their long
by
the
h
Double-Listening to Double-Talk
S
of
movement
already
teen-agers have* ventured to
have less difficulty in obtaining their needs in the capital
may
w
tain
*
1957, but a deficiency
years—in fact only about
This could signify that borrowers
capital
in
clines
are
fluctua¬
.
tentmn, only .a bfmch of ufiabasncd
current estimates, there will be a deficiency in
our
supply of
Carbide
Union
and
peculiar feet of some new stock offerings,
psychological turnabout is a cov- as Socony-Mobile Oil and Ana-,
public has er-headlined
opus
"The
Big conda. 1J5 tllio vi lidJJO uU CAClftfiv*
CI ™~ 11CQvlll 1 ICvl
\J
U m
X
f-'*v-Uliviua Is this perhaps an exaggerveered around to pessimism on the
Squeeze on Business," featured in ation of the true supply situation,
business- as Twell -.ars 'market ;out-,
jj, S. News & World Report, in equally as off-base, as the prelook.
materially increase the demand
for long-term capital beyond that presently estimated.
"
prospects
dollar income by American
Cyanamid
countered the mucli-publicized de-
attacx
decline—the
ments coming
and this would
year,
t
have
./
...
'
j
.
fered
e
tions
registered.
pected)
In addition to the
international
.
in net
Now—after the market's (unex¬
Government
States
May
-"
been
will decrease in
1957, the Treasury may never¬
theless include long-term bonds in its fiscal
program.
Temporarily at least, this would
affect the markets for long-term
corporate
and tax-exempt securities as well as the mar*
ket for outstanding Treasury issues.
Wilfred
*
1
purchases of long-term investments.
While it* is anticipated that the publicly-
,
k
.
A.
•
than
com¬
particular clarity the change,;i.n
public's
attitude
toward
"growth."
For u-negligibility
qt
b r .i ri g i rug dividend
yield and the inscru¬
round a vari¬ tability
of the actual
earnings
ety of incon¬ applicable to these issues certifies
sistent excuses, to pure growth as the motivation
to fit the rnar- for their acquisition.
;
term fixed-income securities have been elimi¬
nated from
"good"
commentary
commercial banks have been eliminated-frbm
the total. Of the sources of funds, and commer¬
cial
the
these
—
reversal
The
are submitted herewith.
As in the past, several
experts interested in this phase of the investment problem have
been most generous in their assistance.
This study follows the
same
of
panies' earnings and hence the
market-price - multiplier,- now —r
companying deemed to have suddenly become Pont and Dow. And may we not
p 1 e t h ora of impaired if not permanently eum- venture to doubt whether there is
"explanation." inated.
serious expectation that this group
'
demand
term
bobbing-around—has after the market's internal
subsequent
in
ease
lows and
re¬
ductions, break-in costs on new
plant, and accelerated deprecia¬
tion charges.
And even in the
case of the chemical section, gains
JJ
of
the
enterprise
well ^managed or/and in a
PHILADELPHIA
Albany
•
•
CHICAGO
•
BOSTON
Allcntown.* Cleveland • Hartford • Milwaukee* Minneapolis
8
C
I
1
(904)
Volume
Federal Tax
Policy and
Economic Challenge
The
By HONORABLE WILBUR D. MILLS*
Congressman from
Subcommittee
Chairman of the
fiscal
on
and
dening
Arkansas
Internal
on
Ways
on
and
to
the
have
laws" which, if it
The
to
the
maintenance
can
a
this
beginning
when
has
repeatedly
question
1957.
since
He
we
the
monetary
to
are
last tax revision and
be
stable dollar.
changes not made, such
considerations
capital gains
as
and
Many
and loss treatment.
price
of
policies
questions
a
are
raised by this recommendation of
Just about a month ago, Presi¬
dent Eisenhower presented to the
Congress
the
submitted
the
budget
largest
when
ever
forces
armed
of
United
States
economic
In fact the budget for the
year 1958 is predicted on a
billion increase in personal
$14.8
1957,
$325.2 billion for 1956 as
and about
actively
engaged
the
fiscal
further
of
year
growth.
income in calendar
were
somewhere
a
whole,
$1 billion increase in
a
corporate profits.
in
personal
world.
This growth in
income
profits,
in
and
turn,
corporate
suggests
Everyone
crease
in
nomic
activity of between 3
is
sure,
of
the
am
31/2%
aware
stormy
tensive
the
in
There
Hon. Wilbur D. Mills
all
coun¬
spare you my own comments
budget details.
I would
like, however, to develop with you
broad
•budget
context
its
and
which
this
for
be appraised.
the
jfcnow,
you
in
implications
tax policy should
As
Joint
nomic Committee, on
Eco¬
which I
am
happy to serve, recently com¬
pleted its hearings on the January
1957
Economic
President.
had
we
discussions
Report
benefit
with
of
the
Council of Economic
Secretary
of
the
During those hearings
the
of
the
extended
President's
Advisers, the
Treasury,
the
Chairman of the Federal Reserve
Board,
cials
other. governmental
outside
and
offi¬
experts.
purpose was to develop
nomic outlook for 1957
Our
the
eco¬
and
the
major issues of economic policy
facing the nation in seeking to
attain the objectives of the Em¬
ployment Act of 1946.
The
testimony
nesses
*An
suggests
address
Executives
February
these
of
that
by
Institute,
18,
about
1957
Rep.
wit¬
will
Mills
to
be
Tax
Washington, D.
C.,
1957.
A year ago
FLORIDA
SECURITIES
more
to the sound financial foundations
upon
its
have
of
many
issue,
its
I
had
the
and
col¬
my
same
forged
which
leaders
made
how
to
as
they are to
their polices and
Whether
know
act'ons
are
taining
a
stable price level.
in
are they to
the cooneration
providing
President requests?
public
it
there
was
ward
the
it
machinery does the President have
in
mind
for
aiding responsible
tnat
of
in
crease
therefore, it
restrain
total
consistent
the
spending
with
the
Triangle
and
fiscal
the
DEPARTMENTMM51
COMPANY
IMVtSTMlMT SICUKITItS
201 S.E. 1st Ave. Miami, Fla.
Phone: Miami, FRanklin 3-7716
rate
a
rate
in¬
of
restraints
throughout
Tax reductions which
scheduled to go into effect
automatically
Ap?U
on
I,
were
deferred
for
The
Federal"
1956,
Reserve'
another
year.
System,
carefully watching a wide range
of economic indicators, limited in¬
in
creases
1956.
the
credit
banks.
for
fact,
in
Gross
resources" of
Despite these
prices did rise
and
In
increase
half of the
over
National
real increases in
output.
A considerable amount
*
was
accumulated
suggesting
that
these
more severe
in
groups
on
others.
evi¬
year
restraints,
general
some
of
last
particularly
credit
the
State
con¬
burdens
economy
and
local
governments, facing rapidly rising
interest costs on their debt
issues,
were
forced
for
to
cut
tations
credit
back
the
supply.
imposed
their
to
appears
have
particularly hard by limi¬
on
expansion
And
small
nesses, apparently, have
feel that the
tight money
on
their
public works, particu¬
school
construction.
The
larly
housing industry
of
the
busi¬
reason
to
situation
particularly severe curb
ability to grow and de¬
a
velop.
As
1956
came
to
a
do
not, frankly, believe that
the President's recommendation is
a
satisfactory solution to the dU
lemma posed by the apparent cori;
llict
between
the
objectives of
maintaining
stable dollar and of
maximum
growth
in
a
promoting
employment
output.
I
have
care¬
fully questioning and listening, to
expert witnesses, both inside
the
and
outside
of Government, who
during the Joint - Eco¬
testified
nomic
It
must
,
Committee's hearings.
to me,
seems
instead, that
we
continue
to rely on public
policies and actions to provide the
setting in which the free expres¬
sion of
the
private incentives basic
successful
enterprise
a
rate
in
of
the
operation
system
growth
will
of
to
our
result
in
consistent, both
short
and long run, with
the price level. And it
is because of this conviction
that
stability
in
I have taken
you On this excursion
before coming back to the
Fed¬
eral budget for fiscal 1958
and its
implications
the
for
Federal
close, there¬
Comparing
with
for
that
the
fiscal
fiscal
years
I
fiscal
1956
'
1953
pattern
for
you
increase
receipts
in
fiscal
is
$2.5 bil¬
increase in
The
estimated
budget expenditures in the same
period is just about the sarnie—
$2.4
$3 billion.
expenditures is just
parisons
they
pattern
in¬
ment,
billion.
increase
about
These
the
com¬
strongly suggest to me.
have to many others, a
which the increase in
in
revenues
the
estimated
The estimated
same—$2.9
as
The
in
receipts in fiscal 1958
estimated receipts in 1957 is
over
in
-
billion.
crease
what
the
except
of
must
we
be
and
we
move
lervently
Age of
Atomic
imon
foundation
a
national solvency.
These
are
of
some
which threaten
our
the
forces
linancial solv¬
ency—forces
which, if not con¬
trolled, could set a torch to infla¬
tion, which, like a prairie fire
sweeping across the plains, couid
In
relation
rowing
World War II, the seething cauld¬
of Hungary, the Middle East
and
Asia, the ever-present threat
of another, perhaps final, Global
War, make it imperative that we
maintain
this,
to
thought
it is
a
har¬
consider
to
that
Government
today has out¬
standing in unexpended appropri¬
the
head
of
Treasury
the
like
cloud—more
than
ances
a
in
the
unexpended
total
fiscal
for
Secretary of the
dark
ominous
bal¬
Government
1958.
I ask you, how can we have
any
semblance of sound financial pol¬
icy
when
more
Government
the
has
outstanding in un¬
expended
appropriations, some
dating back as many as five years,
money
than it, takes in either annually in
tax
receipts
appropriates
or
annu¬
military might at the, ally for its operations.
our
hilt* with
the
budget
rons
resultant imbalances
in
own
domestic economy and
fantastic expenditures which
our
threaten
How could any business firm or
of the
resulting
economy,
Federal
from
are
just
Continued
inflationary disaster.
about
in
ex-
page
26
Wizard-of-Oz0 atmos¬
such
a
phere?
in
the
black
-
Praises Secretary Humphrey
,
Congress with a 71.8 billion dollai'
I
think our commendations
budget for fiscal 1958—the largest- shoulel go to those officials of the
peace-time budget in history. It Government who have held Fed¬
is the fifth largest in the
history, eral spending down, who have
of this Nation—only three, in
the
line
1943^ "held
against inflation
l'U4
the
t
an
World
War
1953,
after
II,
peak years
and
One,
Korea,
In
of
fiscal
have
been
higher..*
And,
and
who have balanced the
et.; I
knows, the
although reduced
recent years, still
debt,;
slightly
amounted
in
to
us
refer,
George
Secretary of. the
who
has
danger, despite high Government
receipts in 1953, that, if some curb
is n'ot placed upon
expenditures,
largely
could
witness
additional
Interest
the
on
in
dangerous
ourselves
1952
and
which
responsible
predicament
in
for1
the
find
we
today.
•
Parenthetically, I would inform
that on the morning .of Jan.
17, 1957, immediately after read¬
Financial
national
even
you,
the
1932
are
near
in¬
you
Solvency
ductions
more
years
Challenges Humphrey
Threatening
might remind
pressures
for
spending — the
policies of the 20
between
in.the future.
Forces
Treasury,
combatted
Government
ruinous
we
steadfastly
tremendous
staggering $272.8
billion last July 1; with the grave
a
budg¬
others, to'the
H. Humphrey,
among
Honorable
the
each of
as
national
debt,, I
re¬
of
ing in the papers that Secretary
Humphrey had stated that "there
the
with
amount
are
lot
a
debt, it is -estimated will reach the
that
all-time
of
places in this budget
letter
high-water mark of $7.3
billion for fiscal
1958—because
higher interest charges in the
rent
of
cur¬
"tight-money" market.
To
me it is almost a
frightening
comparison that the Federal Gov¬
ernment today pays more iri inter¬
est
its
011
paid
for
national
all
debt
than
Governmental
pendituies in fiscal
it
ex-
1938—just
19
In
addition
budget.
in
to
our
fantastic
—
addition
to
our
*Text
of
the
an
Feb.
by
Senator
Smith
National
Reorganisation
of the Citizens
Comnaiitee f«-r
Hoover
5,
address
Third
Conference
1957.
Repcrt,
Washington,
D.
C.,
cut"
I
him
wrote
a
stating that as a member of
the Appropriations Committee
charged with the responsibility of
passing on the budget spending
requests, and as one who has been
rated
a
Council
the
by
Chambers
of
Champion
Commerce
of
of
State
as
being
Economy
in
the
Senate, that I would greatly ap¬
preciate
such
information
and
the
as
to those
President's
budget
could
be
that I
before
be
can
identification
years ago.
the
on
operate
in
As you are aware, the President
Jan.
16,
last, presented the
Govern¬
growth
corporation
on
preceding
a
sketch
estimated
budget
over
lion.
to
The
net
1957
posture
President's,
two
suggests
want
briefly.
the
fiscal- year
the
of
which
In
will
creases
budget
day must
some
pay.
.
and
reached this conclusion after
Prpd- policy.
during the year was accounted
by price increases, rather than
been hit
D. LAURENCE
expan¬
to
year.
were
price level stability.
I
our
plans
TELETYPE
was
productive capacity.
As you all
know, the Federal
Government maintained monetary
than
Golden
pro¬
not to go up through-)
to
necessary
sion
on
\Si Florida''s
up¬
of goods and services. If costs 'and
trols, impose
] n dust rials
all
likely to be strong
on prices as
were
-
Today, many events, many
forces, imperil our economic sta¬
bility and our national security.
neces¬
day meet—debts which
some
the
strong, ation- balances
tremendous
military sum of $74 billion hanging over
"
maintain
posed wage agreements and
price'
must
future generations
our econ-
Peace,
over¬
and
keep
Simt.4
to
p e
of
consistent with
loans,
omy
Margaret Chase
o
management representatives might
are
has
in
obligations
h
consult to determine whether
pro¬
changes
biliion
net
continu¬
and
prices
can-
noted that the
was
out the economy,
we
into
the
national debt
a
Government
$450
guarantees outstanding — commit¬
ments
which
this
Government
obvious
that
consumers intensified
bidding for" limited supplies
their
is
forward
is
1958
wreck
the
financial
stability of
surely, this Government—and this Nation.
For,
What kind of
hope
pressures
ducers
Re¬
upon
earth.
use
One
the
the face of the
What
kind of standards
have
it
mightiest
consistent with main¬
h
Federal
than
commitments,
and
—
perience—from business and labor
,
c
its great¬
have been
ness
ex¬
h i
w
strength,
integrity
strength
sarily be limited by increases in
our productive resources and the
efficiency of their use. It was rec¬
ognized that in such a situation,
dence
Bank, Insurance Companies,
&
this
"Frankenstein" of
—the
that of restoring this Nation
dent might appoint an "Economic
Stabilizer" with whom labor and
economic expansion would
uct
ALFRED
sure
fiscal
leadership.
my opinion, no problem of
greater significance faces us today
than
deluged by inquiries-—
am
leagues
Commission
suggestion in reply to
these questions is that the Presi¬
country was enjoying a record
prosperity and that further real
commercial
TRADING MARKETS
TRADING
I
date?
some
ing threat of inflation.
in
Invest in
$435
unfortunately,
are,
restrains, costs
:
Gross
a
important reservations about this
pleasant prospect. Certainly one
I will, there¬
the
the
of
major reservation
try have explored virtually every
on
attain
have been
arid
Administration's
on an
In
but permit me to
Since the Pres¬
on
the
Pays tribute to President Hoover for his Hoover
expenditures.
one.
statement
to those prevailing at. business and labor leaders,.in their
efforts to comply with this man¬
the beginning of this year.
facet of the budget.
fore,
and
realize this
we
Product
eco¬
President,
ident's
Reorganization
on
Congressional Houses
financial solvency; her
Congress that appro¬
annual accrued expenditure basis,
and (3) obtaining direct correlation between tax
receipts and
about equal
public
forums
over
of
billion in 1957, measured in prices
dis¬
cussions
various
National
If
will
we
level
total
1956.
over
growth,
reception
accorded that
budget. Ex¬
the
in¬
an
here,
I
the
over
a
the
suggest only
eliminated from
on
maintaining
serious
be
priation be determined
ness
to assume
part of this re¬
sponsibility by basing their wage
agreements
both
in
serve
Hoover Commission's recommendation to
simultane¬
achieved.
Rather
he
has
urged leaders of labor and busi¬
on
to
woman
Maine
Subcommittee
budget. The trend toward financial irresponsibility can be
halted, accrrding to Senator Smith, by: (1) reducing govern¬
ment spending to balance the budget;
(2) enacting into law
policies if both of these
objectives
only
should
can¬
on
Government's
Senator from
Senate
con¬
cluded, apparently, that
not
rely
exclusively -
Fpderal
the
has
Republican,
recounts the forces
threatening our
challenge to Secretary Humphrey to specify budgetary cuts;
and his reply that he could not pinpoint
specific items which
our
fully employed?
of
arid fiscal
The
growth in employ¬
production
are
public policies and actions to resolve the
apparent dilemma posed by opposing goals of stable dollar epid
promoting maximum growth in employment and output.
Detects irrevocable pattern of matching federal revenue in¬
creases with spending increases and voices
disappointment with
not
U. S.
Senior
ously
rely
Financial Chronicle
By HONORABLE MARGARET CHASE SMITH*
of
In other words,
stable price level
President
raised
substantially broaden the tax
base, might provide individual income tax rate structure begin¬
ning at 10-15% and ending at 65-70%. Rrp. Mills doubts the
President's appeal to labor and business will produce the
desired effect of halting inflation and maintains we must con¬
tinue
and
resources
of tax rate reduction would be substantive revisions of
tax
we
maximum
ment
Congress Democratic tax expert concludes "the only major
our
of
raising serious ob¬
can
Means
Chairman, Tax Policy Subcommittee, Joint Economic Committee
source
sectors
and
and
Committee
The Commercial and
.
.
pressures with-time unduly bur¬
same
economic growth?
Taxation,
.
Achieving National Solvency
monetary policy to
major
stacles
Revenue
5616
inflationary
out'at the
economy
S.
U.
fore, the major - question in eco¬
nomic policy was: Can
we, at a
time of high
employment, reply
curb
Number
185
am
in my
cut.
I
could
places in
he
felt
have stated
equally interested in this
on the Government
capacity
Operations: Committee, as ranking
Continued
on
page
21
The Commercial and Financial Chronicle
.
.
Thursday, February 28, 1957
.
(995)
and
Three Province Petroleum
Play
advantages of their merging.
Foremost is the fact that the new-
1
[ ly.
.
•
Oil
Ltd.
over
':
•
.
.
Enterprise Economist
■
^
A swift outline of the forthcoming merger between Canadian
;
_
be
V,
Since the strike of oil at Le Due
in 1947 we have seen in West
a
;
i;
;
.
-
in
the
Mountain
Caribou
in
effected
for
share
by
share
Canpipe; and the result will .be
about 13,270,000 total shares outstanding (assuming the exercise
..
50%' working interest in 400,000
acres
,
exchange of Scurry-Rainbow for
,
'
1
"
Dillon,
in
as
(2.9 million
acres
Actual merger will
West Canada.
one
7 *
Chairman,
ing at $3 are forced to take
Eastman whacking risks in
companies withn
Securities Corp.) meager cash, thin balance
(partner
charge
of
land
operations.
E.
George Meschi, retiring President
of
a
skilled
and experienced
manage¬
ment, actual oil and gas reserves,
Canpipe, will continue with the
new
company
sultant.
financial
as
rising oil and
con¬
The merger comes up for
stockholder
approval
by
quite impressive combination of
cas.h flow;
both
play covering
production and
gas
and
exciting land
an
an
four times
area
the
size
of Delaware.
varying interests i .is lofcertain cptiofis) ' with some companies April 29, 1957.
A
three
exciting land grabbing,: explora- 600.000 acres at Peace River.' "" "" 217,000 additional shares authorMpst speculators in shares sell¬ province petroleum play that is.
ti on drilling
"
"
Altogether Scurry-Rainbow jias ized for employee purchase at
Canada,
decade
a
most area,
the
of
and
r
.
•
.
and
'evidenced
develop¬
*
ment overa'V
broad
swatch *
land
of
racked
f
of
assembly,
of
in L
e
petroleum
$1,000,000 in debt of Canpipe. It's
Learnings;
b
L
h t
-
la
Or
d,,
n
rustled up the
drilling
either
oil,
>
*
;.
7
the
merger a
.fromjlanitoba
In
of the
ents
m
Next
up
U. Coblelfb
Irm
a
■yvhole batch of
j
---
-
Petro-
merger.
%
4 "
.
.
is
J.he
-The
rel^toato^rgescalfe
"There
mn
them ing production of rough y 80
*L
dozens
panding
Lt. There
of
many
bankrolls, delicates-
logical
-a
few
of
Jn-th| Beaver Lodge_district.oho^
In Saskatchewan. Canpipe
them.
these small
of
there .were
Quite a
result
lots
casualties
independents,
however, survived either by, for.
tunate early
hits,
by husband-
or
ing their resources and waiting till
big outfit brought in
some
well
a
.
crecj^.
}oan
to
substance
and
an
•
secured
train
a
force
than
for
ex¬
Nor
are
mechanical de¬
no
will
automatically
technically skilled work
or
spread the benefits of
to all groups in
society." — George Meany,
President,' AFL-CIO.
•
■
type
'
•'■
'•
the
company's
uncommitted oil wells could swift.
by
can
an
automation
corporate
institutional
that
vice
strengthened corporate resources
resunin% from the merger give a
^ore
economy.
•And there is
physical assets, however, and the
trols rights (or 33 to 99-year^
leases) covering tne■ minora,; ihf
eluding oil, natural gas and potash in about 1,100,000 net acres.
These are not just random claims
machine, auto¬
self-correcting machines
automatically provide
jobs for a growing labor force.
,
As
no
otherwise,
that, will
acreages, where offsetwells appear certain to become fine pro-
:
is
there
Scurry-Rainbow
0f
or
-produce' customers
, f-
instead of farming them
re
do
will be automatic.
,
*
di * pi.o£itability
£ d|velopin^ comptny properties
OU
prown
relatea . to large sea e p
pessimistic about the ability of Amerito adjust to the- new technology.
I believe, however, that the
adjust¬
society
ments
wiu permlt anew
m
po[j
the land spread
-
companies,
meager
.
*
b
rels per day and excellent pros-, finrprs
"Rut
drilling them
takps
sen-type managements, often bet- pects of many times that; Plus, quita a lot o£ money particularly
ting their entire corporate future some potential in uranium- ironv ^hen the shallowest 'will run up¬
on the luck of a single well drill,
about 20,000 controlled claim acres wards of $65 000 The consolidated
small
with
can
not
-Neither
enterprise with
and development
mdepend-
none
Canada
.
.....
!
am
matic
•acres
cite.
sprang
amazing,'to
not
"'/Lfind^wch' 'an extensive producing
,
struck
out!'
and
if
"I
-
its part,, brings to* "so little debt, which brings us to
panorafnic land play; a very important advantage of the
pn
struck
or
\
unfolding * over fivC million gross
and
•
net. remarkable,
'"V
.
Canadian Pipelines
leunjs Ltd.,
.
for
money
'
and
cash, flow
.1-advanced its
g
Oh, No?
Debentures^(con-
yertible into common at $5) vdnd
days in Texas.
ou
land; in";ih -Scurry-V5%
p'ivbduqtivity; .and
rising
In d ividuals-
leased
prices ranging from $1.45- to $2.75,
of "this equity lies $1,330,000
I prudent. 'Ahead
past 15 months has steadily
areas
since
the Spindlet:p7
management;
good
.record- of
up 4a
•
'
•
There
George Meany
'
•
>
not
may
be
•
.
•• •
any
'
i
>'
me¬
over, or adjacent to,chanical devices that will do these
things? but
j • be
arranged to provide the
the- major proven oil requisite expansion of working
natural forces if given opportunity can and will do
or release sections; or, with .excel-, pastures
in the province—Alida, caD^ai
lent
most of them. This simple truth is one that many
prospects,
drill
an
offset Nottingham, Lampman, Steelman,
^
Key officers in Scurry-Rainbow
themselves.
Frobisher and Quinn Fields. Noof us in this day and time apparently can not grasp.
Another technique for survival, where else in Canada has the sue- will
inciuue TaOunas ii,- jou«;s
and ultimate attainment of stature cess- ratio in wildcatting been so
5
:v ;
(
:
;
and profitability was by merger, high To develop this acreage CanAnd that is our chief topic for pipe in 1955 worked out an agreeThis announcement is 'neither an offer to sell nor a solicitation of an offer to buy any of these
today.
For Scurry-Rainbow Oil-merit
whereby United States
Debentures, The offer is made only by the Prospectus.
Limited (itself a merger of Scurry Smelting
and Refining Co. (1) *
Oil Co. and Rainbow OiLCo.) is loaned
Canpipe $1 million, (2)
about
to
merge
with Canadian became a large stockholder Lit
and
Petroleums
Ltd. now owns 400,000 shares),
(3)
Pipelines
which expanded rapidly in its five agreed
to
provide' exploration,'
• ■■
years of corporate existence, as a
money up to $30 million; oyer a'
result of assimilation by merger 30-year period, (4) gave'Caripipe
of 20 individual
companies.
So four choices in sharing 4he „re"W
you see merger is our main motif,
suiting profits varying from a.'.
near
but
them. Then the value of their
soared and they could sell
acreage
spread
of
some
"
.
-
?
•
.
■': $54,827,500
7-•-•;
-
we'll
First
Rainbow
talk
since
about
the
bear this name,
Vsrd
drilling
of New York, Inc.
L
interest.
and be-
^
American
able
investors.
Scurry-Rainbow
.
concluded
the
corporate
Oil-
third
Limited
of
year
existence
its
on
Scurry-Rainbow is
producing development and ex¬
ploration company with two sub¬
a
in
Alberta.
holdings in the
area
Gross
land
total 2,791,405
ac'res; and net oil production
was
434,790 barrels for the fiscal year,
delivering a net profit for the
of $315,967
year
in 1955J
at four million
duction
has
presently
the
from
stood
field
in
centered
program
policy of acquiring proven
sales
at
acreage
of
Crown
lands.
Some
drilling has been done. Ex- '
ploration
on
lands
in
which'
Scurry-Rainbow
has
been
attractive
a real
agreement
net
1,179,722
has
interest
an
proceeding briskly. The
most
13%%
and
area
promising
to
appears
carried
acres
Smoky River
in
be
interest
ments
bv
under
the
Wapiti-
in West Alberta.
farm-out
Standard
Alberta, Canpipe has
king-size
L>y
fide
Oil
agree-
and
Gas
virtue
of
is' 1%
acres)
its
l.le,
now - being
majors.^
,
I
The several Underwriters have
agreed, subject to certain conditions, to purchase any un¬
subscribed Debentures and, both during and following the subscription
Debentures as set forth in the Prospectus.
avidly ,
perittd, may offer
Finally, there's British Columbia whertin Canpipe has interests
over
2,400,-
}an^'
aeres,
jS Potentially gas producj!rve. a
™eS alo!1S t ies path pf
Westcoas . Transmission Lines, in^ .u»Cr^S
Copies of the Prospectus may be obtained from only such of the undersigned as may legally
these Debentures in compliance with the securities laws of the respective States.
offer
*
the strong possibility of
immediate sale and delivery of
fa^ Production directly to
the pipeline.
a
Canpipe has, in summary, done
remarkable job in putting to¬
gether
play
a
in
really
cil,
impressive
mainly
by
land
for the properties of the compa-
With
for
a
the
of
two
we are now
feiv moments
EASTMAN DILLON, UNION SECURITIES & CO.
GOLDMAN, SACHS & CO.
SMITH, BARNEY & CO.
D REX EL &
CO.
LEHMAN BROTHERS
-
GLOliE, FORGAN & CO.
J" KIDDER, PEABODY & CO.
HARRIMAN RIPLEY & CO.
InnirpttrnlvtI
LAZAIID FREItES & CO.
PAINE, WEBBER,
foregoing
the
THE FIRST BOSTON CORPORATION
MORGAN STANLEY & CO.
BLYTI1 & CO., INC.
shrewd
management and conserving its
bash by exchanging its own shares,
Other land .panies,
promise include
Subscription Price 100%
fiougni ]into me^ ireas-
sketches
future
Company's outstanding Common Stock are being offered rights to subscribe
the rate of $100 principal amount of Debentures for each 25 shares
record on February 25, 1957. Subscription Warrants null expire at
3:30 P.M., Eastern Standard Time, on March 15, 1957.
for the above Debentures at
of Common Stock held of
about $300,000 in 1956 and
:he7 represent an attractive outlook for ppanded income since
™JJ«»
sub'ect 'ai?d 13 ln,tbe
within the last ten days SimonetteNo. 1 came in as a commercial
of
Holders of the
royalties brought into the Treas-
:
redeemed,
subject to adjustment in certain events.
a
nies it absorbed,
blocks
and after June 1, 1957 until maturity, unless previously
into Common Stock of the Company at $45.45 per share,
on
of
Co., and Richfield Oil Corp. (Only
pro<fucer in this area.)
Convertible
royalty (a point,
of the product from
160
in that province
These
7,000. points
a
in
This promising real estate is being
explored
in
One February 15, 1972
Dated February 15, 1957
Canpipe
producing
wells
over
Also
4V2% Convertible Debentures, due 1972
Totally
of,varying extent in
r
'
.
Pembina,
oil
largest
.
; Development
around
$17,856
reserves
?
-
bringing in cash flow to the com¬
pany of over $750,000 in 1956.
"
barrels. Mam pro-
come
Canada.
from
up
Proven oil
and the Hanmat-
*o*Jrv
has
the following pertinent items have
sidiaries
is 42 B/D)
,J°T
Sept. 30,
J956. From the report of that date,
been gleaned.
Consolidated Edison Company
■
straight 2%%gross royalty to a
Scurry-
combina-
new
-
From Alberta comes Canpipe's
cause
Scurry-Rainbow, by virtue largest production, 4he' best Lvells
of
the
listing of its shares on being
Erskine
No.
8-1
which
American Stock Exchange, is per- could
produce 1,000 barrels par haps somewhat better known to day of i igh gravity oil; (the allow-'.
tion will
t
emerges'
of the largest independent petroleum land production and royalty companies in West Canada.
*V
creating
interests
have
will
8% million
dependent oil and gas producer in
;
Pipelines and Petroleums, Ltd. and Scurry-Rainbow Oil Limited
,
Scurry-Rainbow
constituted
Board
and
Ellis
Union •
sheets,
Chairman
of
the
Executive remote
earning power, and so-so
Committee, W. H. Farrand, Vice-: management. In the new and re¬
rut) and 379 gross wells which President in Charge of Operations, vised edition of
Scurry-Rainbow,
makes it perhaps the largest in- and .Lawrence
C.
Morrisroe
in however, it
appears there
'
'
By IRA U. COBLEIGH
,
President
John
7
MERRILL L YNCH, PIERCE, FENNER & BEANE
STONE & WEBSTER SECURITIES CORPORA TION
HORN BLOWER & WEEKS
JACKSON & CURTIS
-
WHITE, WELD & CO.
CARL M.LOEB, RHOADES & CO.
WERTHEIM & CO.
DEAN WITTER & CO.
thumbnail
subject
com-
ready to dilate
on the effects
February 28, 1957.
•
-
8
Volume
(996)
Manufacturing Co., Shareholder Relations Dept.,
70th Street, Milwaukee 1, Wis.
•'(
Chalmers
South
1125
Continued from page
Observations
the
Street, San Francisco 20, Calif. Also available is a circular
on Armijo Union High School District Bonds.
-
Recommendations & Literature
Bahamas
Inc.
Helicopters,
—
Report
South La Salle Street, Chicago 3,
— Leason
&
111. *
Co.. Inc., 39
Myers Co.—Memorandum—Walston & Co., 120 Broad-
Bristol
understood that the firms mentioned will be pleased
send interested parties the following literature:
New York 5, N. Y.
way.
to
;
•
.
Biicyriis-Erie—Data—Hardy & Co., 30 Broad Street, New York:
4, N. Y. Also in the same circular is a discussion of the pres¬
k
to
Aviation,
National
Aviation,
American
North
Tex.
5, N. Y.
Resources—Booklet
explaining why area
opportunities to industry—Utah Power
Dept. K, Box 899, Salt Lake City 10, Utah.
L. A.
Letter
30th Street, N.
Bank
York—Laird,
5, N. Y.
York
Duke Power
&
—
Also available is
Report
Oils—10-issue trial
of Minerals and
Wall Street, New York 5,
17
—
COMING
Witter & Co., 45
De^n
EVENTS
487
International
Nickel
dum
Knox
United
on
Ira
Haupt & Co..
Meadow
A.
30
;
Year End Roundup—Comparison of 1955-1956 earnings for
selected companies—Boenning & Co., 1529 Walnut
11
Street,
Philadelphia 2, Pa.
*
Acme Electric Corp.—Report—Eisele & King,
Libaire, Stout &
ation
Ill Broadway, New York 6, N.
Co.
—
.
.
Annual
at
clients
Electronic Stocks
Thi«
National
Brook
Bank of Nassau County—Report—
Grayson & Co., Inc., 92 Liberty Street, New York 6,
•-
,
Broad
..
•'
'
■: •;;
...
is
fourth
now
largest
in
the
United
States.
Electronic Association President, Dr. W. R. G.
Baker, predicts
increase from its $9 billion sales to $15
biflion by 1960.
*n
Street,
N<
-
lion
Aerovox
•
.
>
•
/
Stern,
,
.
are,
Shipbuilding
Combus-.
y y
.
—
& Co., 30 Pine
a
Street; New York -5, N. Y.
discussion of the current market.
v
Union Carbide
&
•
meeting at
Hotel. 1
reports on%,
Limited
Memorandum
Straus, Blosser & Mc¬
Dowell; 39 South La Salle Street, Chicago 3, 111.
Twentieth Century Fox Film Corp.—Analysis—Stanley, Heller
—
•
Bache & Co., 36 Wall ?
Also - available
■;
April 21-23, 1957 (Dallas, Tex.)
Texas
Group
of
Investment
Bankers • Association
annual
Also available is
;
Carbon Corporation—Annual report—Secre¬
Instr.
the rStatler
Hilton;
May 6-7, 1957 (Richmond, Va;)V/;:
Association of Stock Exchange
.,
-
Firms Board of Governors meet-:
ing at Jefferson Hotel.
May 8-li, 1957 (White Sulphur f
Springs, Va.)
Investmeht Bankers Association
tary, Union Carbide and Carbon Corporation, 30 East 42nd
Street, New York 17, N. Y.
Also available is a booklet
describing the products and processes of Union Carbide.
Spring meeting at
the
Green¬
brier Hotel.
May 19-23,1957 {Cleveland, Ohio)
National Convention of Invest¬
ment
June
THE SECURITY TRADERS ASSOCIATION OF NEW YORK,
nal to:
For
June
(Cincinnati,
1957
;■
19-20,
1957
(Minneapolis-
Xwih City Bond Club
annual
outing and picnic with cocktail
party at Hotel Nicollet June ' 19
and an all day sports program
at
C. Forbes,
the White Bear Yacht
White Bear
Club;
Lake, Minn. June 20,
Lab.
Aircraft-Radio Corp.
•
Burndy Corp.
•
Are Your Records
DEPENDABLE MARKETS
Collins Radio
•
Dynamics
•
Corp.
of
Amer.
Incomplete?
Pfd.
"FOR SALE"
Electronic Associates
•
Hycon Mfg.
•
Jack &
•
Heintz
A Number of Beautiful
Perkin-Elmer
•
P.
•
R.
'
Annual Bound Sets of "CHRONICLES"
Mallory
of
Sprague Electric
Various Dates From 16 to 50 Years
Troster, Singer & Co.
Members
74 Trinity
New
Place
HAnover 2-24O0
York
Security Dealers Association
•
New
York
Teletypes NY
.
DEMPSEY-TEGELER & CO.
Available inr New York
Phone REctor
2-9570
6, X. Y.
1-376-377-378
^
-)
St. Paul)
„
ORLANDO, Goodbody & Co.
reservations, please contact: Raymond
-
Municipal
Bond
Dealers
Group annual spring
party at Sheraton Gibson and
the Maketewah Country Club. ;
"
Hotel
13-14;
Cincinnati
1957 is the 21st birthday of the Security Traders Association
It will be celebrated at the annual STANY DIN¬
NER, at the Waldorf Astoria, April 26, 1957.
The Arrangements Committee, headed by Arnold J. Wechsler,
Ogden, Wechsler & Co., is making every effort to have this a
truly memorable Birthday Party.
/
Members are requested to send reservations ($15 per person),
accompanied with guest list for publication in the STANY Jour¬
Analysts Societies.
Ohio)
INC.
Shearson. Hammill & Co.
Corp.
Airborne
Association
(
—
Pictures, Newport News
Engineering.
Supercrete
f
Report
Neyy York 5, N. Y.
Paramount
*
—
FRANK J.
Along With Many Others, We Trade and Position:
•
(Chicago, III.)
Conference.
Street,;New York 4, N. Y.
,
industry
Associ¬
11th National Instalment Credit
of New York.
profit in:
can
Traders'
Bankers
American
/
report-Allis-
We again suggest you and
your
.
(Toronto, Canada):
Bond
25th.
Mir. 18-20, 1957
NSTA Notes
DEALERS
,
anniversary dinnerthe King Edward Hotel.
Y.
Co., 50 Broadway, New York 4, N. Y.
Manufacturing
at the Biltmore Hotel.
Toronto
Qil Company Limited—Analysis—McLeod,
& Company, Limited, 50 King Street, West,
Shell Transport & Trading
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
•
ner
(New York City)
Security Dealers As¬
anniversary din¬
31st
March 8, 1957
Manufacturing Corp.
New York Central Railroad—Memorandum—Herzfeld &
Over-the-Counter Index—Folder showing an up-to-date- com¬
13-year period —
FVont Street/ New
J.
N. Y.
1957—Bulletin—Harris, Upham & Co., 120
Broadway, New York 5, N. Y..
a
sociation
—
Toronto, Ont., Canada.
Market Outlook for
market performance over
♦National Quotation Bureau, Inc., 46
York 4, N. Y.
Weir
luncheon and reception),
New York
Frontenac
Young
a
,
Co., Ltd., Ill Broadway, New York 7, N. Y.
and
by
March 8,1957
Corporation—Analysis—Unlisted Trailing Dept., Rm. 707,
McCoIl
Yamaichi Securities
—
Shoe
Mid-1
annual
Stratford Hotel (to be preceded1
Simmons
of
—
.
Current information
Company
Philadelphia
Winter Dinner at the Bellevue-
Canada — Report — Harris,
Upham & Co., 120 Broadway, New York 5, N. Y.
Magnavox Company—Analysis—Laird, Bissell & Meeds, 120
Broadway, New York 5, N. Y.
Glenn L. Martin Co.
Memorandum
Goodbody & Co., 115
Broadway, New York 6, N. Y. Also available is a memoran¬
High Cost of Borrowing—A discussion of money and interest
rates—Brush, Slocumb & Co. Inc., 465 California Street,
.San Francisco 4, Calif.
...
of
New York 13, N. Y.
Broadway,
(Philadelphia, Pa.) :
Association
Investment Traders
Chemical Inc.—Memorandum—Harry
Co., 40 Exchange Place, New York 5, N. Y.
Corp.
.
March 1, 1957
& Asso¬
Hydrocarbons
Helicopters—Analysis—Richard Bruce &* Co., Inc., 26 Broad¬
way, Now York 4, N. Y.
•
Investment Field
'*;
■
Georgia Pacific Corporation—Analysis—Ross, Lyon & Co., Inc.,
Letter"—Hayden, Stone & Co., 25 Broad Street, New York 4,
N. Y. 0Also in the same issue are discussions of Aluminum
Stocks and the current market, and a memorandum on Piper
—
In
N. Y.
Skogmo Inc.—Brochure—D. M. S. Hegarty
ciates, Inc., 39 Broadway, New York 6, N. Y.
Stocks—Discussion with particular reference to
Tennessee Gas Transmission in current "Monthly Investment
Chalmers
market;
memor¬
Gamble
Gas Pipeline
Allis
insatiable
dramatic
Corp., 80
a
San Francisco 6, Calif.
Montgomery Street,
Ont., Canada.
Japanese Stocks
public's
Freeport Sulphur Company—Report—Kidder, Peabody & Co.,
Market News and Comment"—$5—
Market News & Comment Ltd., Securities Advisor,
Aircraft
the
more
explanation*
—
Dept. E, 80 Richmond Street, West, Toronto, Ont., Canada.
,
Fund Insurance
Fireman's
Foreign Ownership and the Gordon Report—Brochure—Mid¬
land Securities Corp. Limited, 50 King Street West, Toronto,
yield
Howard
&
Corp.—Report—General Investing
Credit
Wall Street, New York 5, N. Y.
andum on Lake Shore Mines.
subscription to "Stock
»
Eaton
for
anced Fund.
Equitable
leading bank stocks outside
Meeds, 120 Broadway, New
21
of
Bissell
Canada's Treasure House
„
for
filling
need
Bal¬
1957
as-
the;
Thus, as usual ho. embarrassment
being, evoked in omitting con¬
in
Fund—1957 Yearbook—Eaton & How¬
Yearbook
the
—
of
sophisticated
professionals?
But]
if, and after, the market should
advance*. -— as showing that, of
course,
"the professional shorts*
are always wrong"?
■:
is
Also
is
wisdom
sideration- of simple value factors
ard, Incorporated, 24 Federal Street, Boston 10, Mass.
available
downward:
the
Co., Penobscot
Moreland &
Building, Charlotte. N. C.
able is current Foreign Letter.
Stock
—
Company—-Bulletin—R. S. Dickson & Co., Wilder
Eaton A Howard Stock
View
Monthly investment letter — Burnham and
Company, 15 Broad Street, New York 5, N. Y. Also avail¬
Burnham
Analysis
—
continue
W., Washington 7, D. C.
Stocks—Comparison
•New
■•
Darling Co.
should
Building, Detroit 26, Mich.
(No. 24)—Includes Atomic Highlights of
1956.
Comments on French atomic power program, British sub¬
marine and ship propulsion, and items on RobertshawFulton Controls Co., Lindsay Chemical Co., Consolidated
Denison Mines, Ltd. and Can-Met Explorations, Ltd. —
Atomic Development Mutual Fund, Inc., Dept. C. 1G33--
Atomic
immediately ensuing^ "Hum¬
phrey change of mind" upswing.
And how are to be interpreted
the latest short-interest figures,
showing the largest bear position
increase, at 25% over Jan." 15,
since the Exchange began compil¬
ing figures in 1933? If, the market
indicating
,
Chicago National Bank—Bulletin—Wm. H. Tegtmeyer & Co.,;
39 South La Salle Street, Chicago 3, 111.
served offers
& Light Co.,
such
.
Oils Limited — Memorandum — Rowles,
Bank of the Southwest Building, Houston 2,
Winston & Co.,
Aircraft—Thomson & McKinnon, 11 Wall Street, New York
Area
\'y
Homestead
Canadian
United
and
market.
ent
particular reference to
Boeing: Airplane, General Dynamics, Lockheed Aircraft,
Aircraft Common Stocks—Survey with
5
,
Arroyo Grande Union. High 'School District School BondsCircular—Bank of America, N. T. & S. A., 300 Montgomery
Dealer-Broker Investment
It is
Number 5616 .'. .The Commercial end Financial Chronicle
185
•
City-r—Write
or
Edwin; Lr Beck
.
c/o Chronicle,2» Park PI. N. Y; 7
dumber 5616
Volume. 185
Chronicle
The Commercial and Financial
.
technically,
the
-By YVILLJS GALE*
Chairman, Commonwealth
.
to/f'atate -with
Chairman
some
assurance
We
in
nuclear electric
Company ; and
Shippingport,
that competitive
enriched
be
of
heat
a
it
will
—
exchanger,
investment
the
cost.
uranium.
It
urahium.-''
•
»•
-
.
plentiful and cheap, but that in the long run competitive
will become a realify";is construction costs dedine and fossil fuel costs increase. Mr. Gale offers proposal to
accelerate nnclear power program, which retains the ratio of
public to private power and allows AEC subsidization of costs
over comparable conventional facility, to maximize participation by existing utilities in making competitive atomic power.
power race,
-
Bill's passage,
kilowatts in commenting
stresses
Indemnity
for
>
"know how" need
'
■
need
Discusses
-
over
on
and outlines important developments
Available data indicate that the
power
tive.
"
. .
>
• .
the atomic
;
v.- "
y -
*
.
it
necessary
off
is
to
think
I
chance
Edison
Consolidated
be
.
the
of
nuclear power
portant devel¬
opments tak¬
ing
place in
atomic
in the
generation of
merely
is
sub-
a
the
;
.
.
number
natural urani¬
U-238,: but
cheaper, is
Another
Consolidated
that
Edison
is
its
pay¬
proceed¬
actor,"
•*'
own.
Oak
Willis
U-235, separated from U-238, is
for enrichment and also
Gale
stit ute for
needed
fossilfuel.
for
military
-
purposes.
The sep-
'conventional .generating ™ttois ^rSed'oSTin pl'aVs'at
Today's
unit consists
of a boiler and a Qai, Rid<*e Term • Padneah Kv •
turbo-generator,
atomic plant, and portsmouth, Ohio. These use
in place
of the ^iler
a
- tremendous amounts of power
actor in which heat to niake st a
furnished from coal-fired plants,
the
is
be
boiling
kind
water
of
reactor
the
need
for
fuel
A
would
small
be
could be reduced if sufficient de¬
mand
liquid
of
developed.
;
The advantage of heavy water is
that it does not capture as many
neutrons
use
ordinary
as
would eliminate
water.
pressurized heavy water or boil¬
ing heavy water reactor especially
attractive
separated
countries
in
Now
that
j
have
completed
This
In the United States it would be
case
of
heavy water.
So
-
the
much
for
.
reactors
coal
burn
ab2,ut
Fast
Breeder
Reactor
This
brings me to a sixth type,
the 100,000-kilowatt "fast breeder"
Continued
on
offer to sell or a solicitation of an offer to buy these securities.
offering is made only by the Prospectus.
an
a
^QO tons of gas-cooled, graphite-moderated
t type chosen by the British Gov-
J
;
;
Illinois Bell
ernment
The first two of these,
as aj. Calder Hall, are said to have
long as six years when full effi- a total capacity of 92,000 kilociency has been achieved. Note watfs.
The plant was dedicated
the comparison of 1,800 tons pei
jagt October
day with 60 tons for six years.
jn the United States, this type
Point 3 is that there are differ- has not been regarded favorably
This will last
uranium.
$40,000,000
J
day. The at®1^1^ P a
fueled with about 60 to s
per
will be
of
is not
!
/.
.
.
Telephone Company
First Mortgage 434% Bonds, Series E
i
Due March
Dated March 1, 1957
1, 1933
of uranium.
Natural aa to economics because gas is not
uranium consists of one atom of an efficient heat transfer agent.
ent
kinds
difference. U-23d
readily. U-238 does not
sions
it
be
can
Price 101.584% and accrued interest
U-238,
139- atoms of
U-235_ and
What is the
. GaS and graphite, however, are
fia- excellent as to neutron capture,
out The use of -these materials, al-
transformed into plu-, though
fdnium .which. does, and
called a "fertile material."
not
economically favor-
is ak2e as we see
so
does permit the
reaction to be sustained
Point 4 is that! the trick iii a without the use pf enriched fuel,
reactor is to keep the U-235 fis- ,
. The .British do, not have largesioning—in other words, to main- scale
facilities' ' for . separating
tain
the chain'reaction.
When U-235. One reason is that'they;
a neutron hits an atom of U-235,
cannot spare the coal to make
the U-235 splits and gives off an the large amounts of electricity
average of 1xk neutrons.
On the needed to
operate separation
face of it, these 'should maintain plants.
and enlarge the chain'reaction.
This means that the British,
The problem is to keep too many badly in need of additional power/
of the neutrons from getting lost, have found it desirable to use the
What
happens to them?
Some gas-cooled,
graphite-moderated
escape altogether.
Some are ab- reactor, regardless of economics,
sorbed by the U-238 to form plu- Also, this type of reactor is a good
toriium.
Some are absorbed by by-product producer of plutonium
the structural materials of the re- for military purposes,
actor. Still others are absorbed by
The second type that I shall
the coolant and the moderator.
mention is the pressurized water
chain
'
The
Prospectus may be obtained in any State in which this announcementftscirculatedfrom only such
:
of the undersigned and other dealers as may lawfully offer these securities in such State.
.
/
DICK
&.
LADENBURG, THALMANN &. CO.
LYNCH,
PIERCE, FENNER &. BEANE
SCHOELLKOPF, HUTTON A.POMEROY, INC.
BAXTER
&.
Point 5
is" "What is
coolant?"
a
of reactors require the
use
of a coolant to transfer heat
away from the core of the reactor.
A good coolant is a substance like
water which has good ability to
absorb heat
but not too many
types
c°olant and moderator. The reac^or ls pressurized to the extent
j?ecessary to keep the coolant
from turning into steam. The cool-
ant> beated radioactive water, is
exchanger where
mod- piped to a heat in a separate cirsteam is made
n^ntrnnc
'a
6
Feae'or- This has been a favorite
ln *he United States,
u^es ordinary water as, both
What ic a
is o
reactors requne cuit
drive a conventional turthe use of a moderator which is a bjne.
substance, like water or graphite,
Ti;e first full-scale reactor of
T>
•
♦
Point
i
is
Most
erator.
'
,
«
;;ncit n 'w
*•
i
-
York
-
-
•
-
.1
t
■
F,br'u°;
-
*
.
20,
this type is the one
built by West-
4<Ili2> tj' yC lb U1C UUC U UllI uy
VV Cbl"
inghouse to power the "Nautilus."
It has been
tremendous
a
success
-L. F. ROTHSCHILD &. CO.
REYNOLDS &. CO.
INCORPORATED
AUCHINCLOSS, PARKER
BALL, BURGE& KRAUS
COMPANY WERTHEIM &CO.
SHI ELDS
BLAIR &. CO.
COMPANY
_
All
EQUITABLE SECURITIES CORPORATION
& CO.
HALLGARTEN
MERRILL
HALSEY, STUART &. CO. Inc.
MERLE-SMITH
fj
REDPATH
.
WILLIAM BLAIR &. COMPANY
.
BAKER, WEEKS &. CO.
R. S. DICKSON & COMPANY
|
.
INCORPORATED
GREGORY & SONS
NEW
YORK
J. BARTH
IRA HAUPT & CO.
H. HENTZ &. CO.
BURNS BROS. & DENTON, INC.
BURNHAM AND COMPANY
THE MILWAUKEE COMPANY
HIRSCH & CO.
SHEARSON, HAMMILL & CO.
HANSEATIC CORPORATION
& CO.
'
WM. E. POLLOCK A CO., INC.
'
SWISS AMERICAN CORPORATION
February 27. 1957.
..
with
moderators.
r
*
would
announcement
a
balancing the cost of fuel
against the
cost of
enrichment
plant. At the same time a corre¬
sponding amount of cleaned-up
liquid fuel would be added.
The
tremendous ^ese preliminary explanations, I
WQP„Uo
s^ll turn to a brief discussion of
amount, of heat results from fis- ^
prjncjpai types of reactors.
sion. Our nuclear plant will have
1
y
a capacity of 180,000 kilowatts.
A
Principal Reactor Types „
conventional plant of this size
The first I shall mention is the
that
is
2
Point
-
where
U-23Ej is not available.
^
generated by nuclear fission.
is
Its
the need for
enrichment. This would make the
shut¬
in
amount
tastes
,
many
a
j
and
ordinary water but is slightly
atomically.
A' minute
part of all ordinary water is heavy
water. Separating it is a very ex¬
pensive process
and a glassful
costs about $10. No doubt the cost
difficult
a
looks
like
liquid
fuel
would be removed
continuously for cleaning up in an
adjacent cheruical separation
which Com¬
is
building
type,
Edison
monwealth
too
water
be~ different
to
atomic
form.
the
is
will
Heavy Water
Heavy
replace iuel elements, a
disadvantage of other types. The
provided by the AEC.
third
.
a
concept developed at
Ridge.
Its
design
would
down
cost, in the form of research,
to
A
captures
eliminate
States
United
moderator
a
operates with slow neutrons.
i
Public
The/ fuel
Sodium, however, is
ing with this undertaking entirely
on
have
I
reactors
uses
leaving this general type,
possibility of
using heavy water rathei* than
ordinary water in pressurized and
boiling water reactors.
*
\
lurgical problems can be solved
economically, this should
be
a
promising type.
;
,/
The fifth type I shall mention is
the
so-called
"homogeneous re¬
ing all the cost. The private power
industry owes a debt to Consol¬
idated for its courage in
far
I should refer to the
of
metal to work with. If the metal¬
is
difference
and
the
so
Before
neutrons.
plentiful
and
fertile material.
a
of
described
ProjectJ
Consumers
District.
Neither
more
essential
plant
•
Each
.
uranium; the coolant,
liquid sodium; and the moderator,
graphite. Liquid sodium is one of
the best heat transfer agents and
graphite is an excellent moderator.
"enrichment.'!
Still another pressurized water
reactors call reactor
is
the
134,000-kilowatt
for enrichment.
For example, the
plant proposed by Yankee Atomic
fuel for our
plant will contain Electric Company. This company
about twice the U-235 of natural is
being' organized
by
private
uranium.
%
*
utilities in New England. Part of
Most
energy,
power,
'
of
be increased by add¬
that
is
neutrons can
Point 1 is
that
7
ing extra U-235 to
um.
This is called
field.
this
The
they go, the greater the
they will escape without
Point
.
..
enriched
pressurized water
„
speed.
help conserve neutrons.
im¬
the
and
j
Nebraska Power
Power
cock and Wilcoxj The reactor also
will
60,000-kilowatt
a
Nebraska
is
building in cooperation with Bab-
-
-
hitting
another atom - cf' U-235.
Thus, the moderator is used "to
of,?
standing
„
tremendous
at
faster
under¬
an
j
■
...
f
is the 75,000-kilowatt plant whiqh North American
Aviation
proposes
to
build for
will cover a few of the fun-
------
,
and- the high in-*
of -the. clean-up
cost
A fourth type
New
York
know
the 236,000-kilowatt com¬
atomic and oil-fired plant
discus-
this
of
part
*
.
H
in
to slow up neutrons without ab-. type. However, it will be different
sorbing too many. .
; , from Shippingport in that the fuel
damentals. Even though this in- v why slow the neutrons? When will be uranium in combination
thorium.
volves getting somewhat technical,- an atom splits, the neutrons break with
Thorium,
like
nnu
first
The
sion
'
boiiing water type.
/
Consolidated • Edison's Plant
which
-
"
v'
People
about
-
build
the
will be far from competi¬
•
bined
our
taking place.
'
-
.
.
expected- to go into operation,
Just two weeks ago, a group
year. and wilt be this coun¬ headed by Northern States Power
try's first large-scale atomic plant. Company announced a proposal to
nuclear power
;
-
this
V"; are
r
cuts
liquid fuel
Pennsylvania Power and Light,
in cooperation with Westinghouse^
is considering the building of a
homogeneous reactor. With Westinghouse's experience, it is to be
hoped that the technical and eco-t
nomie problems can be solved.
coolant
•
dif^
stand the corrosive action of
plant.
Westinghouse_ at and moderator are ordinary water;
Pa. The fuel will the fuel, slightly enriched natural
natural
fine concept The
a
vestment
made
which
The
This is
the
water
be
,
can
directly in the reactor rather than
:
:>
.
" ficulty is to find materials whic)i
J
.
is
fuels
just around the corner" where fossil
nuclear power is not
v
k
boiling
the
regard
most
or
plant being built by the AEC in
cooperation with Euquesne Light
Commonwealth Edison
plant outside of Chicago prompts
power
.
is'a
fuel
/• Another
of » t h e
pressurized
water type is the 65,000-kilowatt
Edison Company
Scheduled construction, of the largest private
1
the
associates. ,in
.
s
Chicago, Illinois
'
that
is
reason
ftidv of- its
„
Nuclear Pjqwer Group,
high concentration of U-235, per¬ reactor as one of the most promis¬
haps
90%, which; costs around ing from the point of view of
$7,000 per pound compared with competitive power. One significant
$20 for natural uranium.? • "
reason for this is that the steam—
Accelerated Program
an
with, the
hut * I am sure. that,
^
ppv^h: is /very costly indeed;
One
And
9
(997)
t
page
18
10
The Commercial and Financial Chronicle
(993)
You
Executive Leadership Shortage
And Barriers Against Women
By MRS. CHARLES
and
against
: y
in
•
How
than just
more
They
are
in
.
don't assert
to
that
a
has
any
securi¬
Conversely,
that
assert
to:lay's
woman
—especially the gifted and enter¬
prising woman—has a new and
deeper responsibility than ever
in
before
history. She
our
has
a
responsibility to carry her share
of the leadership along with men
of equal ability.
there are not enough
in top executive positions
Frankly,
women
in today's
of
men
top brass in thousands of busi¬
nesses—but the number of
women
in such jobs you can count on the
fingers of
A
position re¬
abilities. It requires
combination
a
„
many
ina
.
.
good
judgment
and enterprise.
.
Only
people
It is
rare
a
rare
there
are
This is
rare
an
me
this
as
situation.
men
have
a
unknowing
judgment of
the
involved,
but the truth is that much of the
basic
business
nation
are
judgments
made
by
of
to
explain.
in the serv¬
You
through the
institution of the savings bank—
I
as
chief
executive
investment house.
"
'
investors
are
of
of
stock
common
names
of
*.
.
his
and
"Oh,
,
Women today hold
than
my
stockholders
corporations
the
are
in
are
larger
percentage
of
shareholders is important
best
ness
outlook
common
♦An
because
barometers
are
of
the
one
the
of
busi¬
changes
in
stock prices.
address
by Mrs. Bay before the
Savins'* Bank Women of New York,. Feb.
20, 1957.
more
hold larger
men
no neces¬
the, world have
the
.
do,
women
blocks of
the
on
of
she's
This
will
plague
of re¬
sums
aver¬
it
is
ing
high
that
true
if
we
add
stockholdings in the joint
accounts, in which women also
have a large share, women are
close to
holding half of the
voting
shares of publicly held
corporate stocks in this country.
very
In many of our leading corpora¬
women hold an even
larger
tions
share
than
This
men.
is
true
in
So
the
it's
a
num¬
corporations, too;
to
easy
American
that
see
business
1.
woman
able
more
and
have all
ness
world
that
things
lap.
your
been
—that
women
sharing equally
are
the
men
ultimate
authority
over
corporate affairs.
though this is true, we
don't get into executive
positions
ourselves.
!
—
- .
One of the
too
it
many
themselves.
in
I
of
a
seen
garden
know
really
attain
So
it
thing
re¬
.
tractor
manner
expert
an
job
.
in
or
it
after
and
plan
*
lay
an
room
supervising
.
the
that
the administration of
and steel
company.
to
the
process.
would
out
...
the
con¬
in!
credit
p
a
addition
a
to
major iron
ti
sales, it
.
pf Fort
ve
Worth,7was
V
: a;
.
ain
that
...
And
.
I
.
this
Our
country.is
of executive
this
become
This
be
can
Our
have
been
rolls.
to
to
national
entire
the
States in
that year
high prosperity, 1929.
This
right
rable
need
before.
ed
to
convince
For
.
the
of
one-half
And
soon
'
.
'
-
-,
while
7
.
the
and
acute
in all
we
I
.
.
since
of
1929,
1922, with
Bankers
is
•
also
BA
a
-
+.
,
^
a
degree,
rj-^A
1945- he. saw service in the southPacific
'west
.
'
with
member of t e Ln ted States
Naval Re3erve from 1942 thr0li"il
be-
and
Mr,.' Eckfeldt
.
and women
me men
and
Newfoundland.
appointed
was
an
toj assistant trust officer in 1947.
-
-^7^
*
\yitb
women
new.
Mr.'Koster,
member
a
*'
*
cf
uate
•
of
the
a
University,
BBA degree.
He subsequently obtained
an
MBA
^
*
■
1942' isa *»<•-
Johns
St,
class of 1936, with
.theiri
in
eras
brains
em-
purpose
7
degree from New York University
-
in
Mrs. Dallas Joins
1938.
Currently, Mr. Koster is
attending
popu¬
30
PHILADELPHIA,
rish
ot
&
Co.., 1421
members of
a?e
years
by
one
the
changes,
Pa.
He
Par¬
—
Chestnut
New
other
Exchange and
H.
Stock
leading
ex¬
has
their
a
1930
» ■
the
as
Dailas
was
of
years,
1952-1956.
represent-
ing the 8th Councilmanic District.
_
During
was
that
period
,chairmap of
Mrs.
Dallas
Council's
com-
an
cf
member of Bank-
a
Co.
since
assistant
the
assistant
1950.
He joined
branch
Program.
an
1927,
was
treasurer
*
in
the Fifth Avenue
company
in
1950
and served with the United States
Army
member
a
1948.
in
Wiebe.
Trust
named
in
the
European
Theatre
from 1942 through 1945.
Mr. Weber, who graduated from
Philadelphia City Council for
four
executives
top
associated.
registered representative.
Mrs.
s
become
Philadelphia officef
officer
Mr.
er.s
University's
Management
appointed
was
trust
Street,
York
that Constance
announce
Dallas
with
capacities.
the
Harvard
Advanced
running into the most
shortage of
Princeton University in 1941 with
a
BA degree, joined the bank the
same year.
He also holds
an
MBA
degree from New York University,
a.
were
to
perstitions
;
-
tragedy if would be if
maintain
which
the
wall
old
bqt
su¬
mil-
mittee of public- health, chairman
having graduated in 1949. During
of
history!
our
What
class
\
nation's
"
1915
•"
Eckfeldt,
Co.
the
from
graduate of Princeton University,
persons.
through
-
through
Trust
I'd
memo-
.
.
our
the
with
™ c'triwic S^rvfce
Mr.
Parrish Co. Staff
number
executive
'
are
lines
joined
a
Wor]d War n* he served
number .of
•
"pires in their
while the country gets enormously
We
the
a
he
graduate of Princeton
University, class of 1935, with a
Pacheior of Arts degree. During
rnatch my mountains,
P»len
people in the exec¬
groups will be smaller
bigger.
mind
when
bank's staf£ since
the number of
age
!
>
4
,
crucial-
most
million
1941
'
these
all
...
to
fully state
.
.
Weber,
Boyd, in pension trust work
since
by the editor Sam Foss.
.
full
newlyRobert M.
. appointed
Assistan
is
Mr.
*•
in
treasurer,
Auditor
liberty of adding
women
"Bring
people .will be
moving into their.30's L.
the age
group
when people emerge intfo
their
the
assistant
an
also named to the position,
r- u! +energlifS bank, is
lines .written
will need
age—actually declined
and
-
all that is need¬
20
named Assistant Vice—Presi-
were
.
17 million the
in
'
May I close, then, with
lation of the country was increas¬
ing bv
people
women
a
These amended
j
us.
example,
by
thought
take
need.
of
peoole,;
we
»
are
„
,
.
-
enterprising executives
in lever
increasing numbers
more than
ever
.
that
.
?.
able
more
especially
in
.
> ^ fbe right time, she
u^aunted tocourage to
her head
the bmger
years ago
country is going to keep
growing. Growing fast!
most
formerly assistant trust officers,
.
over
on
We
and
share
us
the word
greater than the
national product of
gross
United
of
to
increase
an
sharing
With -this
by
up
in
Eliza-
feldt, Jr. and Howard Koster, all
7?
'
lieve
gone
lacking
were
executive
Queen
later
years
are
auditor'
nampd Tuesday, Feb. 26 at Bankers. Trust Co., it: was announced
bv s- Sloan Colt, Chairman of the
Board.
.In the Pension Trust Division,
Richard Boyd, Edward H. Eck-
anyone say
fi
"
than 115 billion dollars: This
more
is
has
f7st
can
assistant' nresidents
ascistant
one
formerly
like
six years, our gross
product
and
by Bankers Tr.
new
„
population of Canada.
same
.7
better nation for it.
than the entire
more
Four
jobs, the outworn superstitions of
a
man's world will most surely
1942
give way .... .and Ave will be a'
short
"
This is
the
how
.
full
J?aS ^
reach
nation's,
our
Named
the
dents and at the bank's Fifth Avenue branch, Norman E. Wiebe,
•
In just the last six
17 million persons
added
to
*
-
•
quickly illustrated.
is
growing.
It's
nation
growing fast.
years, almost
Four Asst. V.-Ps.
are
If each and every woman among
,
woefully
women
'
deep responsibility in the serious and challenging times that lie ahead. •
the years roll on.
worse as
.
All
ap¬
leadership.
<
situation promises
that,
zation of the free world.
,
.
feel certain that
■
^^"ortunHies f-^r lead^rshio in
intelligently
-
and
nations, sink
Germany back
400
>7
'7
'
>'His college is Northwestern Uni-
versity, Evanstony 111.,'where -he
majored in business and finance,
V:
'i 7 - '7-7
''*■
the 20th century is the very color
and shane of the flowering civili-
go
.
and
.
The
fairly and squarely
you
keep after it' long
enough
place
-*",'77
Co.).
saw
ability.
•
.
.
,
you
en-
.,7-;.
when
7
of
under
beth
any¬
get
can
you
course,
Rome
market
decadence
now
impor¬
then—that
-
Viewing again the mam'ficent
accomplishments of Imperial Brit-
really go after it.
desire
of
only
never- women
of
and
kitchens..
that
utive
women
only
.women
7*y :v.
women
..
you
anything
follows
you
■,
that
too
tance unless you
Thus
do
recreation
new
house
me—is
underrate
women
management.
have
rock
to
seems
doesn't
•'
women
home
this
reasons
vote *
;
One of the aims Of the program
of Adoll Hitler was to drive the
abilities
-
group—between
And,
:
'first
we
~
long enough to know
just don't drop into
-
the
submerged.
the busi¬
in
in
is
; into
to
enterpris¬
the
all
Greece
men,
It
at their command.
in
which the stockholder is the boss
7
Stat"
.civilization
women
^ -
after executive
A few facts
under
janal; and
retail
7 was said.' Y X.
j; M r, d e 1 a
Marre, a na-
social status equal to that
a
forum.
is
..
carrying
of
*
of
a
just
.
.-
.
superstition
a
sponsibility with
•
system
*
7
United
womento
-
Minoan
joyed
that
there's >
a women
.
This fact also holds for
tuf
-
been
office.;
the
In
alldwed
and I—and the nation
women go
In the
also
concen-
trated in trad-
.ing, and insti-
«
.
men
a
be
you
—until
voting shares.
But
pally
7
marked: by*
participation:" of womerf
full
general
princi-
duties
;
.
in
7
man's world.
a
incapable
the big job.
power
age, and so men have most of the
Many
argument
world
And
It is true that among individual
holders
women.
women
the
because
some
come
they realize.
that
to
makes
wouldn't under¬
such things."
happen—so
This
wife
.With
;'
All of the great .civilizaHons of
•
negotiations^as effec¬
superstition that
ac¬
woman
a
most
held
and there is
.
I don't have to remind yop
enough.
will
inquiry about business, he'll
up with:
erferprPe
seeking for executive re¬
your
Hp
ex!
officer
be an
tive
ecu
7'"7 *
'
th<*
of
comnanv
-
.
office
...
should stand
-•
-
Vice-Presi-
a
dent
,
7:|^Tl
woman
,*.,»•'
.
renew
can
and your
rises a^d falls
plies to top executive positions for
ps
barometer
readings
for his
qualified women.
<
business
outlook
day after day
I am hopeful that my words will
yet.
'
..." •,
inspire you to action.
When he gets home from the
We need leaders.
than those registered in
the names of men. In other
words,
common
our
women.
an
regis¬
women
You
,
cept stock market
more
publicly
businessmen.
•>
Brookings Institution, in a
recent study, reports that- holdings
tered in the
iacl has
one
that most of
with
•.
The
of shares
this,
fact
ber of other
ice of investors.
8%
of
General Electric, in A. T. & T., in
women—and Du Pont and in Eastman Kodak.
Both you and I are
and
all
the
is
.
provided,
the
men.
me
important bea¬
an
business leaders.
our
—these judgments are followed by
Please allow
they
That
women.
That may sound a bit
and
—
as
escaped rrost of
many
and yet
—
for
—respect
as
men.
It's unusual because
tremendous
may
right
country
unusual
in
stock than
say
just
are
in
women
there
serve
people
some
surprised—let
here that
can
chief executive.
And—while
be
Yet
stand
.
who
man
market rises
form
for the
con
stam¬
.
minority of business
these needed abili¬
*
a
good
a
.
possess
ties.
as
cf
emotional maturity.
.
.
stock
do the actions of some ten million
investors
.
You
falls—constituting
t
.
,
fall.
These stock
No talented
back today.
ability and
-
executive
top
quires
hands.
your two
business
The business executive
serving
are
public
the
the
favorable
be
to
market
business world.
Thousands
as
prices
when
consider
not
outlook
•
.
as to
You
does
Mrs. C. Ulrick Bay
what
do
desire to
a
,
*
ings.
woman.
we
con¬
to be
get in on a share of future earn¬
because she is
But,
public
the
that
business outlook
the
good—and that there is
to
authority and
position just
a
firm or mov¬
investors want
are
many
reasons
siders
spe¬
prices
and
up
and has been named
very.
,
/
time77
this crucial period of
in
security of our nation is involved
in this problem.
V
figure
shopping cen¬
7
v7-
somehow
buy stocks, the executive usual¬
ly
woman
claim
cial
ing
dollar
more
•
business
in
ties markets.
If stock
herself
the old barriers of
the general tone of the
they carry re¬
sponsibility.
We certainly
Indeed,
formerly with
Jacqtied de la vmarre
7: *
I;
generation ago. *7 y ,/;..v
Of course, we have to face the
7'7
7 "'77 7 "
,"3 Houston inBut in ancient Egypt, 30(H) years vestment house. Until joining the
fact that executive positions are
before
Col u m b u s" discovered Dallas' firm her was President5 of
largely in the hands of men.business in
And
when
women
seek these, America; a host of Queens odcu-* his own- /investment
pied the throne. / In the ancient Victoria 7 Buhler-de la Marre &
executive positions they encounter -
determine
One Of the best factors is found
a
And
trust.
outlook.
the business outlook?
rights.
mere
each
the small
tail shopping.
executives
do
give
tively
They must adapt
production plans
and
business
Keiih Reed & Co.
misdirection
rivalry with the Soviets the
why it cannot be upplied to the large sums involved
sales
the
she'll do
well.
as
sary reason
constantly plan ahead.
to
are
after
aptitude
products.
.
a
,
their
these
But
days they
Today we have
to be.
i g h ts
r
her
This is real business
their
reason
our
about
the
skillful, intuitive bargain¬ sponsibility with a real sense;of
ing abilities of women as retail ' serving- your
country's'' need.*'
There is nothing selfish about if.
shoppers are well known. 7b -
women's rights. In those
grandmothers
economic
be to
The
.had
and
concerned
much
job just
ter. '
Today's business executives must
They must
constantly analyze the markets for
Our mothers
were
give
teri-million-dollar
our
women.
in
would
•
history. Mrs. Bay draws
upon "the truth ... that much of the basic business judgments
of the nation are made by women—and—these judgments are
followed by men" to berate many women for underrating them¬
selves. Wants more able and enterprising women to go after
executive responsibility and shatter the plaguing superstition
shortage of top executives in
nation
loss it
jobs
bigger
exactly the same kind
of
thinking will plan the layout of a
particularly when the nation is facing the most acute
sex
De la Msrre Joins
.
.What-a
•.
true.
and
basis of
position maintains it is a tragedy to discriminate on
be
capable executives merely
they are women.
>
because
Thursday, February 28, 1957
.
do her home
can
and
.
new
.
small.
are
and I'm certain
ciphers
Decrying the paucity of women in top executive positions in
today's business world, first woman to achieve high Wall Street
i
sums
All she needs to do is to add five
American Export Lines, Inc.
i
.
.
.
lions of
point- out
have self confi-
.
capable, gifted, talented
a
who
.
.
the
Director,
Chairman of the Executive Committee and
|
Take
woman
job
Kidder & Co., N. Y. City
quickly
women
don't consider this to
I
well
ULRICK BAY*
Chairman and President of A. M.
j
could
that these
dence because the
.
World War II, Mr. Weber served
-
the
publjc
welfare
committee
and chairman of the finance
niiitee.
-
^
com-
with tixe United States Army Air
Force in the Pacific Theatre,
Volume
185
5616
Number
.
The Commercial and Financial Chronicle
.
.
main
Outlook for Corporation Profits
lost
of 85
look
representative industrial firms in
ground
"this
18 industries,
moderate widening in 1957 profit margins. Mr.
used
but
(2) rebound on the recovery side for textiles; and (3)
income investor facing favorable prospect in electric utilities,
and modest outlook in commercial banks, finance companies
dustrial
85
This
tries.
is
Petroleum
e r e
sted,
because of the
key role these
economy
because
securities
h
e
1 d
large
crease(i
0ff
of
the
•
to
up
4%:
and
"
are:
Industrial
Machinery
gradually.
Automobile
'
corporation profits reported by the
Department of Commerce reprei sents mining and manufacturing,
96% of our 85-company sample is
Better
-'
Than
...
accounts
34%
of
mining
o£
composed
and
Non-Ferrous Metals
i
r
Soap
- "
•
Bunding materials
...
,
profits of all private corporations
as reported
by the Department of
'. Commerce during this period
Crucial
Two
Turning
1
prospects this year. Sales and net
commercial
out-
Factors
the. result. of careful
industry analyses
by the Investment Research'
Staff of the Wellington group. It
is a result of periodic visits and
calls to almost all of the com-
Profits are in a gradually rising
tinuation
order
obtain
to
a
sound
"
Particular
attention
was
given to:
gales
-
pretax profits.
Relationship
of
on
pretax
margin to sales.
The
1953, sales rose 60%, preprofits. rose
7%,
and net
1950 to
profits declined 5%); and (b) impact of depreciation charges on
profits
pretax
because
of
(1)
a
®
high level of capital expenditures;
(2)
•
'
by
adoption
-..
many
companies;
of new methods of
in
ment.
higher sales price,
^)
;
In
(t
of
plant
and
.
equip-
text
the
of
New
School
of
Dean's Al"**"*!
Feb.
16,
,
,
New Issue
an
should be
dividends
of
these
leading
com¬
panies in 1957 will be at least
good and probably
a
as
little higher
than in 1956.
A. J. McGowan With
John R, Boland Go.
Alfred J. McGowan has become
are
associated with John R. Boland &
electric
the
banks
a
indicates
favorable
con¬
trend.
Alfred
J.
McGowan
A
representative sample Co., Inc., 30 Broad Street, New
commercial
banks
in York City, and will be in charge
and
industrial of the trading department. Mr.
a rise in earn¬
McGowan
was
previously with
ings of around 5-8%. This is based
on
continuation
of a
high loan -Hayden, Stone & Co.
survey
of
•
of
of
a
large
major
financial
centers, indicates
offer of securities for sale
or a
solicitation of an offer to buy securities,
*
«
February 27, 1957
.
300,000 Shares
Potomac Electric Power
Company
Serial Preferred Stock, $2.44 Series
is
definite
been
severe
of 1957
"
Pur Value $50 per
Share
(Entitled to Cumuhdwe Dioidcnds)
or
••
'
Price $50 per
plus accrued dividend from
share
March 1, 1957
evidence
pressure.
each
are assuming a
moderate
jggg
Copies oj the prospectus may be obtained from such of the 'undersigned,
(who are among the underwriters named in the prospectus) as mag
legally ojjer these securities under applicable securities taws.
Johnston, Lemon & Co.
over
for
reasons:
(a)
Dillon, Read & Co. Inc.
following
widening in profit margins in 1957
in
of
rate
Securities & Co.
pro-
Merrill Lynch, Pierce,
Fenner & Beane
ductivity, owing to absence
of
major
strikes
in
,
1957.
....
larger and
more
^
efficient
■
pro-
ductive Capacity.
These factors
•
..
.,
.
labor costs
imply
*•
the' rate1 Ol
a
Folger, Nolan, Fleming—W. B. Hibbs & Co., Inc.
wage
increases.
...
Alex. Brown & Sons
Auchincloss, Parker & Redpath
Eastman Dillon, Union
slowing
(b) 'increase in rate of labor
address by Mr, Kulp
York University, Gradu-
1957.
corporations
well maintained. This foreshadows
-
rising pretax profit margin
year
of the
1955-1957
a
an
Business Administration,
Hotnecomirrgr Conference,
leading
Industrial machinery is the onlyindustry in our 18-industry sample
(c)
♦The
has
gin
.
ate
.
or
throughout
this
representative
sample that the pretax profit mar-
'
5
„
.
.
,
,
...
Industries in which depreciation
tefore
.
There
straight line depreciation is being
,
decade
of
period.
replaced by the newer methods of
.
This announcement is not
<c> increase m labor productivity.-
de-
this "85-company sample
depreciation.
past
on
reduction of other costs,
in
higher writeoff in the
a
life
earlier
.,
...
.
w
(a)
(3)
preciation several years ago which
results
the
squeeze
profit margins will require:
overcome
of accelerated amortiza-.
use
tion
'
.
.
the
profits
As to the business outlook, we
profits- To
recognition were — (a) excess
profits tax 1950-1953 (for example,
in our 85-company sample from
tax
that
industrial
profits
of
ness
inadequate
receive
often
that
...
-is the amount of profit they can
obtain from a given level of sales.
Profits
affecting
factors
which is natural, because of the
djverse nature of this group. The
margin companies used here are - pre-
.
profit
However, a given level of busiactivity does not automati¬
cally indicate a given level of '
profit profits.- The critical factor confronting corporate, managements -
r
Affecting
Factors
.,
of
activity,
Impact of excess profits tax on
profits;
Impact of depreciation charges
net
.
Outcome
squeeze.
1956, with about half of the rise
in
physical
volume
and
half
generated by higher prices. The
year 1957 at this early date looks
a little better than 1956.
There
be numerous cross-currents,
but geneiaiiy a high level of
perspective this study covered on
examination, through the 10 years
1947-1956, of each of the 85 industrial companies
used in this
paper.
85.company sample tre"dThe companies in the
this
hinSes 0n two-buiWuig. materials group vary
'
^ '
widely
in "profit
expectations
are assuming that Gross National
Product will rise about 4-5% over
panies concerned.'
In
nrofit
Ja) Business outlook assumptions.
'
:
the
the
1957>
f^ctors-
and
company
to
now
for
done
t
f
look
reached m this
are
paper
1
indicates
of
the*
industry are expected to
during 1957 in line with
the long-term 7%
growth trend.
Any rise in operating costs will
be more significant than in 1956,
'and common stock financing will
'
'
on
record
overcome
.
•
The conclusions
of
r
inclination
and
squeeze
also
interested in the 1957 profit out¬
look for some of the great indus¬
tries which are primarily used to
serve investors' income objectives.
revenues
presented
on:
Rubber
<
be greater—reflecting larger con¬
to report earnings rising at a
Industrial machinery
struction
programs.
Earnings in
slower rate than the rate of gam
Container
1957. are expected to range from
«? sales. Industries where depre-■
even to plus 10%
f
Food
«"/
above 1956, de"ation is leveling off, or slowing
Chemicals
; pending upon the individual com¬
d°Wn, are likely to report im-;
These
groups
appear
to have pany and the territory served.
provement in earnings relative to
The profit outlook in 1957 for
sales.
typical better-than-average profit
porations. Sales, pretax and net
earnings in this cross-section have
generally moved up from 1947
through 1956. This contrasts with
the
relatively flat trend in net
•
5 to 9%
up
ability
economy.
you
depends
advance
Paper
at a taster rate tnan;
sales have a tendency, therefore, -
all cor-
of
earnings
Profits
depreciation
increases
manu-
Our 85-company sample
for 30% of pretax and
net
where
the
doubt
no
corporation
1957
managements to
need revision.
of
areas
However,
tele¬
*
timistic business assumptions;
emphasis in this profit out¬
study is in the sensitive and
volatile
the
,
validity of the cautiously op¬
(b)
expecta¬
rebound
a
conclusion,
paper
the
,
.utility
Prospects
(except aluminum) ;
Industries
of
(a)
The
look
-
Profit
Average
•
lecturing.
estimates would
Gross
Drugs
largely
are
In
in this
tions, the companies about which
I believe this forum is primarily
wondering today, the 1957 profits'
picture
generally
ranges
from
reassuring
to
favorable, ' with
several major industries standing
out. Obviously, if any change in
our business assumptions becomes
necessary,
these
profit
outlook
rising
•
.
of
earnings
banks, fi¬
and
profit outlook for
Looking, therefore, at the large
Drug;
are.
increase
an
phone industry.
industrial manufacturing corpora¬
Merchandising.
Sales
and
companies
The
in
market.
favorable
outlook for commercial
;
nature, following last year's sharp
profit decline.
provement
in
the
drug
field
depends largely on introduction
of important
new
drugs with a
wide
industry,
nance
profit
processors)
tions
"}the automobile and merchanim¬
dising groups. Significant
is * tapering
definitely
a
modest dimensions in the
(weavers-processors)
petroleum, office equipment
groups appear
to
a rising sales and earn¬
ings trend. Steel, agricultural and
electrical equipment groups were
set
back
by costly strikes last
year. The textile group (weavers
?° profits, because of higher costs
Steel
all
of
gate
•
Textile
aggre-
even
ity
Equipment
remain in
metals
(
appears to
profit outlook in the electric util¬
and; electrical
higher sales are
these industries, the
rise may not be large enough to
carry the improvement fully down
Agricultural Equipment
Whereas 60%
of
Kulp
Moyer
are:
investor
Steel
While' slightly
depreciation
leveling
or
investors.
A.
profit expectations
expected
...
Merchandising
a
body
earn¬
;
*•
.
.
Automotive;
Industries where the rate of in-
are
by
1957
facing
more
/ . ' / 4 ■'
'
Electrical Equipment
,
Rubber
their
.
on
i
or
Agricultural Equipment
,
Soap
the
and
in
generally
Profits
Containers
,
companies oc¬
cupy
Office
Textiles
decline.
Paper
t
.
Chemicals
i
10%
up
in loan volume.-
The income
whole.
a
firm lending rate, and
a
increase
some
The
varies widely,
the favorable
paper
demand,
the
Petroleum
Building Materials
is
Food
n
this
as
of
be
Profits
.
vitally-
indicative
not
are
building industry
aluminum); copper
prices have fallen sharply from
the
high
levels
caused
by
strikes, stock piling and booming conditions in the last three
years/ Sales
are
expected to
-
Equipment
Office Equipment
this
forum
in
The
Electric
of
industry
which
tions
(except
in
cross-section
a
dominately large and well man¬
aged, and their profit expecta¬
However,
indicates... that
the
-Profit decline: non-ferrous
has been moving upward at
relatively constant rate are:
discusses the profit
representative incompanies in 18 indus¬
of
side,
telephone industry.
This paper
outlook
com¬
ings outlook for the 18 industries
num;
and
smaller
This study finds the
Kulp foresees: (1) earnings varying widely, but generally on
the favorable side, except non-ferrous metals other than alumi¬
j
profit
companies
Profit Expectations
,
a
the
to
survey
4-5% rise in 1957 GNP, half in price and half in output, and
assumption of
larger
larger companies may regain their
previous relationship during 1957.
.
their ten-year experience and on the assumption of
on
the
recent
tant factor in this trend.
Wellington Fund investment manager outlines the profit out¬
based
the
ment
Wellington Fund, Philadelphia
The
in
panies. The steel, electrical equip¬
and agricultural equipment
strikes probably were an impor¬
Chairman Investment Committee
Vice-President and
factor
squeeze;
In
1956
By A* MOYER KULP*
II
(999)
flattening
»
•!
increase Of Unit*
which have been the
Jones, Kreeger & Hewitt
Robinson and Lukens
Ferris & Company
Mackall & Coe
Rouse, Brewer & Becker
Bircly & Company
Rohrbaugh and Company
12
The Commercial and Financial Chronicle
(1000)
«
I
»«♦«+.
fh * * f
j)
What
Financial Public Relations
'
public relations, since it
and the
accelerated trend since
World War II is accounted for by
Mr. Gartley in terms of
initiated
what
Author stresses
to
"pharfs
•
•
loaHAffi
kini^vri
i'?
1.
mutual
fessionals
shareholders.
men"
J.
.ti
—
*
•
f.
.
and
/.l'
I
funds,
anrf-Whn
M>mmimjtv»
community; and;\vho,
invest-
or
Orp'+ritcWl
riinnr'n
AnnaVknn
are trusted
J 4
•
has shown that it assists in
ence
sl^ thousand
(ftWllK
fOntroll
il>
v-/Iij0'l|f}f VR- RaIoC
-
DO-
ti*
•,
n-
wt
'C-ir'
-
t':
w
i-iii..'
-
,
...
sistentlyv supported by/top com-vtrade and -industry.
investment
'»A -do-nothing/.altitude* often
Wf»ll
9C
five
are
sdcurity-tanalysts: and
•
«^-^.feedrDg'W;reav^maria^^nt>*H*=w««iy
Vulnerable
to the
.,
<
executives^-will unquestion.ably benefit both
management
pany
f3) F.P.R. requires special skills/ and shareholders,
:
women
who
invest
money
for and, in particular; the big Plus • (6) F.P.R. can build an inventory
others.
They are. to be found on factor of-Related Experience.
of potential new shareholders —
the staffs of stock brokers, invest(#> F.P.R. succeeds best when buyers to offset sellers. ..."
menLadvisers, bank trust depart- conducted by people who know
(7) An F.P.R. program can also
the.30.€00
are
including
favorable
advantages to both management and
~-My discussion gives special em-
„
recognition.^
investor
ability to reach
compete for fair and
;
favorable
and
and how such
can-do
it
utilities,
by
Community?.
fair
.,
New York City
The ranid advancement of financial
was
j
t
for
People Make Up
Financial
They
By II. M. GARTLEY*
& Associates, Inc.,
Gartley
of
Kind
the
v
Thursday, February 28, 1957
;
.
LftW&fiWH ARftllfll
"
t;
-
and need lor
discussed
■-
^
/
.
by
f<;r
,
>1
7
,
*•*,
J
.s
*s
consequences
federal mortgage policies.
President of
terest
•
-
in
dreds of
a
co^i^ny Jmong hun- The >lW
potential
shareholders.-,;
Savings
Bank
Brooklyn, declared Feb.. 22 that
,
fact
;
that. thousands
of
veterans
of:wouW be denied home pivhership.
i
v
\
i
"r
Their-.-nanorama-of
Interest
is
.u
,.f
■
;
tVge.s Congressional Abtion
•
.
..
Action
f,
"v*- j 7. "
'
enterprise.,
.holders
-potential <•
»are
v
by
based
are
if
So;
..
considerable
-
17'*■
•-.y;"."
.grams.
sellers. *
investment, pro
most
u
ne'mp J
\vanla Jts 'ment
management
:
**
~
oy-
-
^
;
.
....
7
1
medical bill
a
analyst
of central
is
^
--I*
;*
lower ; down
and
•
will/re-
FHA mbrtgages,
;Johnson?
college, to meet
"at
the
on
the
higher', interbsl rate/for VA loads
•
,
to
Congress
possibld date,'' both
guide the several million families -sents :a temporary; storehouse of
who are the real owners of Amer- accumulated savings.
All shareican
.»
•
.
»
■
V'
-
7
'
'<
•
payments 4
was
on
urged by' Mr.
sothat -uncertainties
:wopld be "reinoved from the build¬
significance, hieher interest C7
ing
-
industry
and -increase
the
volume of home construction.
The banker said that the lower
;
menxs.
ketplace.
Although: it
does
the balance sheet,
on
tion
is
a
real
very
fleets the
of
company's credit rating,
every
holders.
'
rj"
ment. Good
management, perform-
ance
a
dividend record
■
earnings
good
longer
no
...
list, and
and
management to inake their
are
^
(1)
modern
responsibilities
Purpose
To
Two:
an
that
most
most
nraetirahle
piacticabie
change.
its
,
provide
nf
ot
means
means
ex-
lrom
ion
its
financing.
shares
yardstick.
becomes
of
price
This is especially true
if the financing involves the issuconvertible
convertible
of
ance
a
ce
seninr
senio.
RoPlir
secur-.
lties-
tition
in
the
compe-
nationwide financial
community.
'
*
o
Phrnliorv
co ollary
ti
competition foi
fi-
nancial community recognition.
A
well
•well
planned,
supported
prepares
the
sustained
F.P.R.
way
for
bv creating a constructive attitude
by creatine a constructive atHtndo
•-among
and
nnancial
the
whom
investing
I!!1
ipyalty ol
Four'
Four.
families
Tx>
To
't!1
nrpvmt
prevent
for
mic
mis-
m^in ain
owners
both shaie.
financial opinion
Publi! ReUtins
Public
MUwaukee,
Wis.
•
and
leaders.
•-
v
Notional
leaders
they speak.
Pur»os<»
purpose
«
opinion
Soiiety of
■
Ameri«?
Relations
•r'.
Conference,
gggary
make
"virtually
all
will withdraw.
.♦.$
.
^
are
_
nec-
Mr. Johnson contended, to
5
home
ownership
possible
for families who cannot accumu-
of
.late high down payments, but are
able to meet monthly amortization
the
market"
VA
because
financial cpinknowledgeable,
4V2%,
Mr.
bank
own
Johnson
will
an(j
0ther
carrying charges,
said that his
making VA
cease
skeptical. 'They, loans unless the rate is raised.
_
The
Dime savings Bank ofBrooklyn, which originates and
securities-
course, ure
•
•
an F.P.R. story directed
financial audiences should be
Second,
»to
$335,000,000 in VA
nearly
mort--
continued making VA
gages, has
loans for the past^several months
although many other lenders had
withdrawn from that market, Mr.
factual.
leaders like to take the facts and;
pointed out. r
•
This policy was maintained, he
operating results and financial
<5niw their own conclusions; Anything that hints of-"promotion" or
"stock touting" is looked, upon
with suspicion.
;
'/
said, because public statements of
Government" officials /-indicated,
that-the VA rate would be in-,
creased to the 5% permitted by
^ition
po-
are none of the sharehold-
er,g husipess, so long as he is
paid
•
has
virtually
disap-
peared.
•
Most companies now issue mod-
informative
annual
/"hough, when
comes along,
some
a
reports
poor
the
real
Third,
brief
these days have much
reasons); many
sup-
attention,
welcoined
them questions are mvited.
A- few companies have spent the
money
to
determine
shareholders' preferences, and are
tailoring their communications to
meet
more
Cease VA Loans
litera-
the owners' specifications.
a
story should
be
in
days
or
a
stead of the trees!—it should
ex-
as
to
Through films, pamphlets,
all
nrnrillfip
P
e
P„rrpnt
nQW
mugt
markot
rotnrns
re_examine
•
•
tures,
'
our
life-line of
education reaches
and'
cancer
people in
business and industry.
cancer
News that is several
week late often is use-
commitments and turn to other
investments which will produce a
the difference between life
analyst—either it is
or
he feels he has
/
mately $100,000,000 we have out-
better return than the present
unrealistic low yield from.VA
loans."
The
Summary
.
^
(l)
F.P.R.
is
unquestionably
increaMng its specialty role m
banker
would, be
—
..
.
said
such
taken -*"with
•
:
posters, exhibits and lee-
in
standing in advance VA mortgage
"missed his market."
•
the
well
probably withdraw the approxi-
less to the
Void hat,"
*
jt,
e
.
*
opinion
But shareholder communication
is only the beginning.
Manage—
ment should look at the forest in-
k
inctitufinns
"
ex
leader
financial
promptly.
.
vest the funds of its deoositdrs to
the
Fourth, the story should reach
the
C■
ipnrlinf*
*
Johnson
t
„
t
f..
f
f
nfhJr
be short
summarized
Mr
"However"
and to the point. Those stories
\frhich necessarily must be longer
n!w° shTreholdSs aJe°wekom^l m
research-
tteFHA.
the story should.be as
possible. Most analysts
as
reports dividend enclosures should
an/s
opinion Johnson
financial
year ture crossing their desks than they
can possibly read. To gain their. JJ
plement annual reports with in-
ana
Most
managements
stm refuse to tell their sharehold-
program
expansion
>
Lower down payments
already is being done in
this field. The old attitude that
ers
and
are
/./ ;
yield from VA home loans
their interest rate pegged at
management,"if they are going xo
put other people s money into its
au-
Much
ern,
In competitive capitalism, there
a
;
dividends,
Purpose Three: To meet
im-
men—the existing shareholders.
to
up
cordingly,
judge
management s; holds more home mortgages than
honesty and frankness. It stands any other savings bank: in the
to reason that they: must trust. nati0n and currently has invested
and
lhe owners,-theoretically the boss
important
an
most
Who comprises thig'special
dience? ,> *he foreground, °f
.
leaders
sophisticated and
portant to the financial audience.
faces
company
Again tne
that
Remember
„
the
the first $10,000
on
^
jow
and p I a n n , n g f o r can by digging find out the real
truth about a company and, ac-,
two—P R O F I T S
«
000
#f the value between $24,00
P
OC
Management
Doing so builds a reputation for
integrity.
yardstick ;of
' "
Or" perhaps the
Positive.
tive side of the story as it occurs.
PROSPECTS—are
ur^pernaps ,uie company races
new
as
must be willing to tell the nega-
growth.
The last
ev
««:mn
amount °f
pavments on FHA
,
__
such as provided in
tion.
price of its shares is
negotiation
0 Cl
well
reseaich.de-
Legislation
tt r-a
appraised value, ranging
$20,000.
mort_
u:«
gages,
a bill
introduced recently by CongressAllv%
Tnnrtirn
(T*^ _Tnv \
man Olin E. Teague (D.-Tex.)
-
reasons
S5) PROSPECTS
r
ment is 7% of the first $9,000 and
higher VA interest rate. At 27% of the remainder with a
a
initial
i-ic,*.-4
public relations story must
be honest and frank. It must deal
Xiri+Vl
oil
fa pf
11
with all the factors—negative as
j
alike."
and $30,000. The present require-
^Tegis'l^nTo
Told?
First, and most important, a fi-
particular,
>
,
PRODUCTS —the
0f
week
for
-*-*
nancial
an
this
earlier
which
rnittee
company's existence.
(4) PROFITS—operating results
and the.consequent financial posi-
,
principal
engaged
?
h
,
ment of 2%
Brooklyn .banker
independent counsel
operating efficiency.
the
,
The market
the
or
shares
•
.
league would permit a down Day-
,
the
t
™reQ Dy. congressman
.
for the
.
provide well
acquisition
in
mort-,-.
rejected Administration proposals
main
five
gages
home-buyers; veterans and
non-veterans
on
in F.P.R. usually with the help of
tit
PLANTS—the facilities
(3)
merger
ering
actively
companies—are
ere-
payments are? neces¬
^'in order to broaden the base
for all
sub-
Asserting
that
mortgage lenders
their
consid-
finds
—
r-kvni
r.
(2)
—
priced "share money."
Frequently a company
PEOPLE
management.
evalua-
continuing responsibility.
often
be
MR
st0ry divides into
subjects:
'
fSM
a
whirh
cjaj
tion have become part of manage¬
and
can
George C. Johnson
stantially
lower down payments
Congress,
How Shou.d the Story Be
com-
other investors.
ment's
buyers
sary
also
and
others-large evqnsmall the House Veterans Affairs Com-, 15%
as Well as. urged reconsideration of action by
and
ated to offset necessitous selling.
known and well regarded by
Efforts to. maintain fair
tion
moderate-sized
on
down
Adrhinistra-
ments for the job.
Increasingly, they look to
enough.
pany
new
-FHA
insured
by
the .Federal
Housing Administration.
• ■
depart-.
jn a letter sent to members of
own-special
their
have
.
invest-lLv^SPn®'^anP,£!it.5**?^
bhaieholdeis
be kept
ihe
of their
Veterans
neered long ago by the telephone, fallows
deserve/
can
...
.Fin anciaK Public Relations has
advanced rapidly since it was pio-
and its record. '
1 :
'
;
/The point is that, through effec-
and
thfe
t
.
want
evaluation
fair
share-
its
What Has Been Done
.
.
^ct. only because he believed it electric and gas utilities. The.
'iWfU. profit him., He buys a parti cf- trend has accelerated since World
"lar stock only because he has War II.
.
;
.been taught to like the company
Today, some great corporations
■'
Shareowners
a
of
one
.
not appear) The buyer of a security, on the
fair evaluahand, feels no such urgency,
asset.
It re- 'He; puts^his. money into the rnar-
the reputation of its management;
its industry standing, and the welfare
/ • ;
■
-
action
extreme"
reluctance", because of the considerable amount of unemploy-
broad panorama of the corporate thinking./ .7 " ' ment/which^would result; -bQth /
whole financial community, rather
(2) An F.P^R. programJs essen- within the building trades and in. :
than just the foreground. ^ -- -v tial if. a
company, is Jo compete
allied * industries, as -well as the"'-
)
They learn facts about
which
could
mean
and death. For information
about
a
program
in
.
,
your
plant call the American
Cancer Society or, write
"Cancer"
care
of your/
local Post Office."
/
#AMHtlQAH CA*CEB SOCIETY
Volume
185
Number
5616
The Commercialand Financial Chronicle1 * *
.
'
.
:
■..
•
.,
..
who
a' day -. and, working
11; months. |
The' State Legislatures are also;
By ROGER W. BABSON
responsible for passing
various
laws regulating teachers' profes¬
sional requirements and sanitary?
Washingto
Ahead
offer the prospect
Mr. Babson believes state and local taxes
of the News
of
By CARLISLE BARGERON
an
!
,
to .the
apprehensively
.
Total taxes for the year;
Tittle possi¬
v
_7„ >
I was discussing the problem-with a Re-
.ideas.
-
#
bility of relief,
from
publican leader recently. He said, he had ac-cepted -only one speaking ...'engagement,' since •
Congress^.returned.
"What on earth cah I
V
say?'.' he asked.* He meant that, of course, he
.
.
.
On
,
.
*
talk
f
'
his-class!
'.%>/.•/
•: But with .a! speech ringing 'the Virtues of/-!
Republicanism, giving reasons -wRy/ the clec-i
;
; torate
rather
■
able
He
Words.
the
support
harp
can
upon
Carlisle
to
that
such;
said
js
fire
a
about
that
,
u/
thfeir party is
particularly
what
most, just/now,
hurts
What
"
New
'
/
,
or
have, in-
states
than. 30
taxes
sales taxes, or both.
The states also get a big amount
/from automobile taxes, with cuts
alcohol and tobacco taxes. Un-
"
on
•
*
fortunately, most states are careless in their expenditures because
»'
4
,
their money comes so
tongue-ties
'
*
As
easily.
result/ total
a
debts
state
promised small business a reduction. Instead the Administration
turned completely around and sent to Capitol Hill a record break¬
;
billion. Now there is a row on as
-
to
there
hardly
was
a
have
about
should
who
schools.
Republican barnstormers can, of course, regale their audiences
with the virtues of President Eisenhower.
He still has the con¬
the
people.1 But
the
publicans have learned in two
School
to
the
for
pay
costs
are
new
really
responsibility of the cities and
passed
states/which in turn are
to the
on
$11
over
counties, but they are being
the vendors, of Republicanism feel
there has been too much of that. ^In the first place/the President
is not an issue any more. He can't r,un again. And if he could and
did that doesn't do the Republican party much good. Thus the Re¬
of
billion
$2x/a
years—from
10
last
the
during
fivefold
almost
increased
ing peacetime budget.
fidence
the
-that
for
expenses
roads,
police?,
city should provide parking facili¬
ties for their automobiles but also
bonds.
facilities
parking
Fundamental
Question
discussing
old
adage,
criticize
better
I
do
such school' buildr
produce better and
not
so
maintenance,
teachers
in
in
the
required,
school
in
number
and
of
.the
in
curriculum.
school
crowded in my youth that
meetings
revolution
construction,
Schools
students.
club
parents
childreii
I therefore fore¬
complete
a
of
their
at
are
working.
school
am sure
efficient
desire
the
they
out
cast
"bigger and better" school build¬
ever,
school
present
places to park
while
or
ings. .From my observation, how¬
ings
of
because
for
I would be the last to
the
present
craze
for
students,
the
system is luxurious and expensive
"penny
schools produced
luxurious
believe
I
we
the
chil¬
their
for
dren.
for
taxes
believe that the
parents not only
wise—pound foolish." If I felt that
were
last is
This
in
cut
.
"•
election
their
more
Republican candidate who did
not imply a tax reduction this year, was inescapable with, con¬
tinued prosperity and the continued economy to which the Ad¬
ministration was committed.
The Republican platform definitely
last
sell
remember
Sources
'
spellbinders, is the loss of the economy issue. In the
Republican
•
*
the
Although
their
longer
should ' avoid talking
only about saving money. We must
Revenue
Tax
More
come
<
from its so-called
partnership policy in the matter of power projects.
$50 in
'
private enterprise system as against the Demo¬
hankering for socialism, given a brief liit in the last cam¬
laiiy when the Administration is backing away
v
low).
\
,
Parking;
automobile;, has
given the state and counties more
income, yet it has vastly increased
/
building costs. This latter is par¬
ticularly important now, when it
is so difficult for municipalities to
Roger W. Babson
range
low of about
State
paign, is now likely to fall on less receptive ears in'the increased
light of the managed economy in ,which we are. living,, particu•
•:•••
a
-
protection,
means
relaThe
tively high) to a top of around
When
$135 in the State of Washington
(where city taxes are especially schools,
foreign policy, just now, the better off he is.
pride and joy of Republican orators that
The
1
irt $90
V
and parking facilities;
becoming a most im-4
portant question. Good downtownschool
costs must come from
a
change in the curriculum or in; parking facilities - must be pro¬
school building maintenance, and vided to enable retailers to con-*
tinue
prosperous.
However;
especially in the high interest on
individual.
They
exponent of the
crats?
o
of the chil¬
comfort"
School
•
Jersey (where city taxes are
?
Republican orator figures that the .less
a
b
from
money
under
a
an
policy. Furthermore, the stock market makes him a
little warv of waxing too enthusiastic on this topic. .The old re¬
liable issue of Eisenhower keeping us out of war, quite elective
in the-last campaign, has lost some of. its flavor because of: the
Middle East situation. We are not at war," it is true, but Dulles is
.
o-c a
and
hours
shorter
This
State
dV «L
and
to
The
...
students.
vacations.
to /keep
taxes -amount
y •*
v4
"health
dren.
money
have
^
v-
*
enjoying an unusual degree of prosperity—a theme worked, gen¬
erously in the last campaign—but even then he had better select
his audience and stav away from those who are victims "of the
tight
-
taxes.' State
Bargeron
"! ;/ *
the fact that,we are.*"
other
,
down
a n
Republican party- /
than the Democrats, he was'at a~loss. fbi;*,./
should
laws
Salaries?
school teachers could get
in industry, depart¬
ment' stores, or offices, but they
are
sticking by. their- teaching
from
loyalty, and because they
more
if-we V
really ;.r
put up a fight,;
we^ should be/,»
would
on
college professor talking;, to
the
at
are;
of luxury
all th^»e
benefit: the
also
supposed
to
buildings,' but
all good
/
h a n d,
,the state'df The/nation? op ecb^ >.H
nOmics;' give a lecture after the .fashion of ai
could
Federals '
City taxes..
or
Taxes
facts
are
that! thes
graduates today need to be made
tougher rather than softer.
This
is the way to cut costs,, rejduce
teachers' salaries is cbming from
taxes,, and
graduate
better
the teachers themselves.; Almost
,
.
interests
State
due not only to the cost
.
What About Teachers'
includ¬
laws,
These
have
who
tradesmen
It '/'is"', generally - agreed
ing Federal, State, and Local taxes,
that
will-amount, to more than $100,-.1 cities, towns, and counties should
000,000,000 for 170,000,000 people.: pay teachers' salaries. It is unfair
There, is .very; >
/
'
.
! to believe that pressure for higher
,
schools.
by professional men and'
as
stake., Increased
buildings and
interest rates, luxury
school parking lots.
well
as
Congressional
1958
.-'elections have been toying with the idea of expanding their staffs
with writers. The purpose would be to make
'
" - >
; Republicans
more articulate.
The trouble, xi :
.in.getting the speakers to make the speeches
even*if expert writers could come-up with
I
♦
■
come
in
actively promoted by P.T.A.'s,
are
not
but from changes in: curriculum, school
building maintenance,
Republican organizations in Washington; both the" Republican
•National Committee and the Republican Congressional Campaign
looking
Suggests cuts
of departure.
attractive point
from teachers' salaries
■
conditions
being reduced and focuses attention on cost of education
as
Committee,
complain about longer hours*
State-local Taxes and Schools
vj> k-
From
(1001)^ 13
.
.
trying to hand them over to the
Government."
Federal
obliged to have three
grades in each classroom. Further¬
more, we had two sessions—morn¬
ing and afternoon—and no bus to
take us to school! I really believe
we
1
were
these
rough
good part of
conditions
were
Smith, Barney Go.
In New Location
a
"
our
Smith, Barney &
education.
of the New
Talking with students, I do not
find
much
objection to ; having
schools
the
used
made
curriculum
more
more
and
or
the
practical.
other leading
nounce
office
They welcome the use of televi¬
sion and radio. It; is the teachers
Co., members
York Stock Exchange
exchanges,
an¬
the removal of their main
20
to
Broad
Street,
New
York City.
Congressional elections.
Dick Simpson, Chairman of the Republican
'Congressional Campaign Committee, was roundly denounced by
several editors when he said a few weeks ago that the last cam¬
Congressman
paign had been toe 'Tkified." What he meant was
been toe much emphasis on the President and not
-party.-He was eminently right.
.
,,
Even now
-
t
This announcement is neither
•'
•
that there had
enough on the
/
;
!
/
propaganda term of "modern" Republicanism. The! President has
been a party to this, perhaps unwitting of its damage. It is helpful
to him personally when he doesn't need it but it hurts the party,.
:
!
1
an
ojfer
to
sell
nor a
solicitation of
an
The offer is made only by the Prospectus.
offer to buy these securities.
...
February 27, 1957
,
528,000 Shares
,
.
The West Perm Electric
but is now're¬
is at the helm.
Well, he won't be there indefinitely and it. is not fair to picture
the party as a former convict. Certainly it has come to accept new
ideas, new theories Of government. It has accepted- many innova¬
tions of the New Deal, not necessarily because they were good
but because they have become deeply -embodied in the economic
/fabric. Succeeding governments usually accept that which is too
deep rooted to remove/ Only in -the. case of. a revolutionary gov¬
ernment such as was the New Deal are the roots pulled up. Once
pulled tip it takes even more-of a revolution tc restore, them/ „
The* Republicans are-110b revolutionaries.. They recognize
what'has"gor.e on in the past as established facf_ It is not, they,
arg pleading guiltv to not having done what the New Dealers did,
but a realization that they did it and that Unless the country is to
"be''turned upside down the New Deal innovations ore largely
here to stay. This is not "modern" Republicanism, simply a look
suggests'that the party has sinned in the 'past
trusted as long as Eisenhower
It
..
;
labor under the
Republican party workers have to
.*
'
;
Company
forming and can be
"
at the facts
of life.
-
.
Edward Mathews
-
(Special to The Financial
Adds;
/
"
*
-
Merrill Lynch
Joins
V-
•
($5 Par Value)
.
the holders of its. out?
February 26, 1957 for sub¬
.the, rate of I^ share for each 16: shares then held. The
3-:$0 P.M;, Eastern Standard Time, 011 March 14/ 1957.
The/Company is offering the above-mentioned additional shares to
-/
standing Common Stock of record at the close of business on
/
scription atV$2^.f 0 per. share at
.
Subscription Offer will expire at
Prior to the
the several Purchasers
expiration of the Subscription Offer,
shares'of Common Stock pursuant to
:
,
offer and sell
.
r
;
•
y
>
UnderState.
Carl M. Loeb, Rhoades & Co.
Chronicle)
Mass.
,
.
^
Ladenburg, Thalmann & Co. /C
A; GVEdwards & Sons
/
..
I'-'. Bache & Co.
/y.
y
- /•
(
.
may
the terms and conditions set forth in the Prospectus.
Copies• of the Prospectus may be obtained in any' State only from such of the several
--'•/* writers, including the undersigned, us. may lawfully offer the securities in such
— Roger
Kane y CLEVELAND, Ohio r— Richard !,
C. Draper «i$ now; affiliated with ;
the staff of Ed¬
Merrill Lynch/ Pierce, Fenner
ward E. Mathews & Co.,< 53 State
Beane,
216 ;*• Superior
Avenue,
Street*.;/'*v
*'
Northeast.
;
-"
1 '
BOSTON,
.
has been added to
.
t
J.
■
(Special to Thf. Financial
Chronicle)
Common Stock.
'
.
Johnston, Lemon & Co.
.
,
Two With Paine,
^(Special to The Financial
Webber
;
Two With Suburban Sees. "/-•
Chronicle*
Walston & Co., Inc.
* MILWAUKEE,
and Benjamiir
I.' Mdraek
hardt,
Jr.,
Webber,
-
Wis.v-Llewelly 11
are
now
Jackson / &
A.
with
Bern¬
CLEVELAND,
Ilkanic -and;
Paine,
Curtis;
North. Broadway.- Both were
(Special te The Financiac Chronicle) /
605
'
Ohio
Ronald
F.
—
,
•
John J.
O'Connell
*
J
/East
;
Incorporated
/;
-
y
"*'*■'
Sutro & Co.
" •
, .
E. F. Hutton & Company..
Newburger, Loeb & Co.
.
Securities
Co.,',-732
.'!
.•«.
+■
r.
Company
Mead, Miller & Co.
Have joirie'd the staff Of Suburban '■'
Street.
form¬
erly/with Bache & ;Co: '' '/ J
iBoettcher and
Loewi & Co.
.<
,
_
/
200th
'
«"4
*
.
)
,
A
-/
«
'*
i
14
(1GC2)
pipe
Unified Tiaasf ortation Policy
And the National Economy
Pacific
Union
scale
of the
and
narrow
place
the transportation industry, in
it
is
equipped
at
cost
be
always
been
railroader, and I
a
proud to
just as
that
of
I
broadest aspects,
to
say
today
is directed
likewise
this
to
question,
rather
than
from
strictly railroad viewpoint.
*'■-
Transportation
nation's
largest
is
greater
affected
ably the largest.
railroads
Some estimates
much
as
one-sixth
as
national
gross
of
product.
It's
water
though, that the transporta¬
tion function is discharged by a
group of industries, largely sepa¬
rate from one another, some of
which devote themselves entirely
to the business of transportation
while
others
are
has
all, of the transportation
quired'by their owners.
is
It
has
anomalous
the
greatest
that
and
sponsible
serious
recent
have
persons
of
transportation
our
dustries
follows
is
beneficial
most
whether indeed
the
sown
seed
to
the
postwar
the
pattern
a
for
the
great
address by Mr. Harriman before
Transportation Management Program,
Arden House, Harriman, N.
Y., Jan. 20,
;
1957.
Thus
about
as
billion
portion
to
has
develop¬
40
past
recent
of
the
by
times,
means
of
with
in
us
a
of
Gross
But
per
National
bill for
the
the
and
Each
truck,
of
the
bill
for
1939
the
ton mile
of -trans¬
of
"
ton
total
of
I
we
■
the
*
writers
only in
states in
dealeis in securities and
only ; at
that
been
Pinto
appointment
as
A. G. Becker & Co.
I iu*Ji*Tw>raU'f1
Central Republic Comnanv
Republic Company
Walston Ac Co., Inc.
Robert W. Bitinl & Co.,
Incorporated
Bosworth, Sullivan He Company, Inc.
Stix He Co.
Burke &
McCormick He Co.
I. M. Simon He Co.
pany
Goodbody He Co.
and
Company
Hill Brothers
announced
was
by
Mr.
bank's
Avenue
lice
the
of
set
crudely
be able to
though
them,
measure
"Fortune"
in
January issue to call attention
5
charge
which
he
is
presently
the
as
industry.
And
has
concern
to
be
about
''
*>
-
In
about
the
the
as¬
Toronto-Dominion
Bank,
York branch, announces the
appointment of T. F. R. Elliott as
of
,
Feb.
v.
■.
mens
Philadelphia have been called for
March 12 to vote on the proposed
plan of merger adopted by
of directors of each
joint
boards
the
needed;
in
Company,
Trust
of 25
members, divided into three
classes.
*
.
F.
R.
Elliott
Albig, President of
Mr. Reed H.
New
York
E.
B.
with
Agent.
Hull
who
43
than
the
formerly
He
is
of
years
bank.
succeeds
retiring
Mr.
office
was
1
Addison
Mr.
*f
if
-
1
find
ourselves
troubled
seasonal
shortages
of
Byerley
office of
President, Mr. Wilson C.
Election of Harold E. Harris and
Sumner
A.
Williams
as
Vice-
to the
and Mr. George
office of Assistant
Vice-President in addition to his
elected
newly
Assistant Cashier,
T. Steele to the
duties
as
Department. '■~
ment Loan
The
mon-
and
Ind.
soecialized
shortages
phys¬
equipment
shortcomings
service
in
and
other
the' quality
rendered
transporters.
certain
by
The
of
commercial
over-all
costs
distribution,
too, ..are
Continued
on
agasn
page,
34
in
com¬
$150,009
from
$250,000
Feb.
15.(30,000 shares,
par
$io). ,;
E. Harris
Presidents
change
H.
on
New
Feb.
Corn
York,
27
by
Both
men,
who
Ex¬
dent, Ingersoll Products Divisiori,
was
Borg-Warner Corp, to the board
directors
of
Harold
are
Harold
members of
•
Century Club,
being promoted from the.rank
affiliated
Rockefeller
51st
with
Center
the
Office
Street, New
bank's
at
York.
11
C.,
Chicago,
.
Jan.
Du
Vail
17.
is
if
Dykstra
named -Assistant
Merchandise-
ef Assistant Vice-Presidents They
West
on
if
are
if
Pullman Trust & Savings Bank,
111. announces the elec¬
tion of James H. Ingersoll, Presi¬
Helm, Chairman.
the Bank's Quarter
value
.
if
Chicago,
Sumner'A. Williams
Chemical
of
Bank,
announced
are
of
--
..
bv a stock dividend
and from $250,000 to $300,000 by
the sale
of new stock, effective
to
concern,
of
Bank,
increased, its
stock
capital
;
,.
National,
First
Wabash,
if
if
if
plant
with
Instal-
Manager of the
*
we
equipment,
Vice-
to
Cashier,
Assistant
an
$
.
positions in the bank.
A. Clarke, formerly
executive
in
directors
have
following
men
to
the
elected
that
announces
of
board
the
Montreal.
'
Pa.
McKeesport,
service
Elliott
branch
-
McKeesport,
the National Bank of
after
Manager of the Toron¬
to-Dominion
if
if
if
T.
.
fifties
but
the
Tradesmens Bank
will consist
Provident
as
and
,
the
our
of
combined institution, to be known
Harold
moderated
year.
directors
of
board
The
this
early
institution
ment'to supply the total of trans¬
have
Com¬
Provident Trust
of Philadelphia and TradesBank and Trust Company,
if
portation
ff
&
meetings of stockhold¬
the
of
ers
pany
c
shortage of plant and equip¬
we
Fair-
15.
^
Special
equipment; in the forties'we
concerned about sheer
of
Mass.,
effective
done
oversupply
if
Bank
National
changed its title
"National Bank of Fairhaven,"
to
New
times,-in
redundancy
tf
if
says
thirties
New-
*?
Haven,"
The
of
Bank
burgh," effective Feb. 15.
"The
it
changed to "High¬
was
National
land
Bank
and
Newburgh," *
of
Company
New York
•'*
'
" Highland-
the
of
National
Quassaick
Trust
oc
if
if
-
transporta¬
shifted..three
worried
ical
got
title
The.
That's why we are here.
has
about
"Fortune"
*
#
office, 378
Americas, the ofT
the
Ferry
bank.
Greenwich
of
to
in
will be in charge
office of the
now
Dobbs
the
signed.
;
transport
when The County Trust"!
Treasurer,
of
placed
was
of
two
merged, he became a Vice-Presi¬
larger organization.
Richard
J.
Haug,
Assistant
■Mr. Pinto joined Manufacturers
Trust Company in 1939 after over
1948
and
dent of the
Feb. 25.
on
Bank
Ferry
Company and Dobbs Ferry Bank
Lawrence
Assistant Vice-Presi¬
an
Flanigan
,
evaluate
to
results,
persistent
Smith, Moore & Co.
Howard, Weil, Labouisse, Friedriehs
February 28, 1957.
Stifel, Nicola us & Company
«
Blunt FIJis He Simmons
MacDonald, Inc.
McCourtney-Breckenridge He Company
^
Doniinick & Dominick
(Incorporated)
Reinholdt & Gardner
of
dent of Manufacturers Trust Com¬
the
Dobbs
years ago
The
-
Vice-President
elected
was
the
any
are
efficiency in
were
Merrill Lynch, Pierce, Fenner &
Beane
he
At present he is assigned to the
bank's Fifth Avenue at 43rd St.
doing
its
and
Eastman Dillon, Union Securities & Co.
the
..
the
in
we
It. is. this
three decades.
Blyth & Co., Inc.
any
The
Apparently
have
we
doubt leads
no
Our
which such underwriters are
qualified'to act as
which the
prospectus may legally be distributed.
of
that
institution exceeds
active
banker
in
single
a
we
to
of
in
Westchester
a
Trust Company's Dobbs Ferry
His length of service with
ty
creation
major problem today in this phase
of the several under,
as
-years
office.
.
services.
doubt
may
tion
any
*
55
after
President in charge of The Coun¬
consumable
position, today
Price $60.50 per share
be obtained from
Assistant Secretary in
1948 was placed in
bank's Greenwich
the
to
directly
what
about it.
prospectus may
today
$5).
*
presently assigned.
in
resources
for
more
something
Copies of the
value
par
banker is David R. Ravekes, Vice-
cheaply than
\
and
is
that
Capital Stock
capital stock
•'
$
and nine months
ap¬
office, 378 Avenue of the Amer¬
icas, the office to which he is
more
(Par Value $12.50 Fer Share)
other
was
changing
available
more
transportation
expense
over-all
Company
Retiring
traffic,: the
mile,--again
dollars*,' is
spend
can
the
the
consequences.
Missouri Portland Cement
with
He
shares,
*
in
of
,
given
a
and
101,233 Shares
banks.
an
and
charge
For while
before.
In
the
prospectus.
York
pointed
against
as
types
with
shippers today
these—the
an
(2,562,500
experience
years
say
weight
average
all
rail
average
ever
offering of these shares for sale, or an offer to buy, or a solicitation
of
offer to buy, any of such shares. The offering is made only by the
to
distribution '' of
in
an
td
us
,
service
the
by
rapidly,
up
been
aircraft,
.
portation taken together has "gone
rapid" development
railroad.
bus
that
produced
best
and,
enable
not
position
of
constant
have
gradual
a
as
National
-
substantially.
less costly alternatives.
capable.
years
Gross
grown
much.
True,
buying superior service,
query is whether we are
mix¬
the
'
of
in¬
to $12,812,500 by
dividend, effective Feb. 15
stock
a
Mr. Pinto jdined Manufacturers
Trust Company in 1939 after over
an¬
miles
ton
the
do
any
goods
not
the
Gross
certainty how
worth
transport other than
the
•
for
are
we
such
Board.
Bank
York
New
common
from $12,500,000
that we are spend¬
ing more of our income for freight.,
20 years experience *witlV other
transporation — much more, al-*
New York banks. He was appointed
though the deficiencies - of our - an Assistant
Secretary in" 1939 and
allow free and
were
produce
which
The
•
two
transportation
of
Product
industries, but distinct gov¬
agencies charged with
unregulated
the
Square,
its
creased
producing' office.
.are
yearly.
freight
.
that
J his is
we
many
dollars
Product
the
marked
*Ari
the
lars.
are
ture
not
of
and
relationship to the
but
of
trouble.
- •
r
.
close
we
growth
future
;
of
ment, while we place others under
heavy restraint. It would appear
which
has
years
domestic
Franklin
New York, is announced by
C. Flanigan, Chairman of
pany,
Franklin ^National
The
Vice-Presi¬
,
We develop
only clearly distinct transpor¬
we
Lawrence
Assistant
an
.
statistics
strange indeed
nation,
rise
transport
That is to say
virtually
in¬
the
than
National Product in constant .dol¬
movement
transportation
appointment "of
as
county.
appointment of John J.
Mr. Ravekes started as a clerk
other,
but.'
Handley Jr. as an Assistant Sec-, with the Dobbs Ferry Bank in
arise whether the course of events
retary
of
Manufacturers
Trust
1901.
He became Cashier, Trust
has resulted in a wise combina¬
Company was aiso auuounceu u/ Officer
and
tion of these alternative types of
Secretary
to
the
Mr. Flanigan.
'
/
,V> Board of Directors in 1933 and
transport.
The
growth
of
ton
Mr. Handley joined
miles by all forms of transport
Manufac¬ the next year he was elected a
turers Trust Company in 1951.
member of the
board.
In 1940,
in the aggregate has held
quite
fostering, developing and regu¬
lating certain of these industries.
But to certain large segments of
raised
less
to
reshaping of
questions cannot help
ernment
re¬
than
more
of
that
tation
questions whether the lush
growth
over
times
of
resurgence
not
in
good
times
and
bad,
transportation questions have
In
because of
forms
rarely at the whole.
ade¬
The
Pinto
20
pe¬
separate portions of trans-^
portation most of the time and
Both
us.
%,
from
whole
look at
re¬
quate
transportation
system
of
the world, yet never seems to be
free of a transportation problem.
worried
the
of
other
and
separately
stated
policies and regulated by separate
governmental agencies.
Both in
government and in business we
America
most
our
>
a
to
if
some,
carrier
45
shifted
freight.
It
excludes
both
air
transportation and
ocean
ship¬
ping, both of which are subjected
other
of
part
perform
not
-
eco¬
our
interstate
trucking and 10% of
a
fact,
businesses and
of
pipe lines, it covers per¬
haps only a third of our intercity
our
higher
of
and
freight transportation by
our
rail
troleum
suggest that it annually accounts
for
most
and
all
to
move
population
When in the space of three dec¬
new
includes
that
we
abundance.
ades
policy of the Interstate Com¬
Act applies only to those
are regulated by the
While
as
be
Bankers
and
CAPITALIZATIONS
New
Interstate Commerce Commission,
the
our
Rail-Ton Costs
carriers that
industries—prob¬
opportunities
for
whole history
For
of
i
merce
a
of
one
tion
broad
BRANCHES
OFFICERS, ETC.
REVISED
Horace
■
never
have
NEW
NEW
wide.
are
been
nomic
The so-called national transporta¬
what
and
CONSOLIDATIONS
them
among
stable, for each
levels
In
ever
News About Banks
and the
produce that
dent of Manufacturers Trust Com¬
so
portation in its
have
..
cilities and it will continue to
fact, this nation has not and
has
had
a
complete and
coordinated transportation policy.
I
its
deeply affected by the
progress of our transportation fa¬
association today
been.
However,
this seminar is dealing with trans¬
proud
as
not
are
progress.
Policy
am
supply
can
Differences
they
has
Transportation
Coordinated
Lack
it
in cost and service
70%
have
I
to
which
service.
even
segmented efforts made to date, in order
policy would
serve America best and how we can get it.
Problems discussed
by Mr. Harriman include: congested airways and airports,
clogged cities, inadequate highways and ocean ports, rails'
loss of high value traffic, tax inequities, how to pay for im¬
provements, and taking advantage of advancing transportation
technology. The noted banker deplores lack of information
and singles out motor and inland water transport as examples
of gaps in our transportation knowledge.
...
tow—has
capabilities
undergoing rapid technical de¬
velopment which tends to enlarge
its capabilities
and to open up
independent full
an
river
is
what kind of unified transportation
to determine
!
of
for
calls
head
Railroad
reexamination
the
With
respect to the character of .service
But
Chairman of the Board, Union Pacific Railroad
]v
particular
both
By E. ROLAND HARRIMAN*
]
line,
own
has
Cashier
President
announced.
been
by
the
Bank
of
Kenneth
K.
National
\
His duties will include managecoirimrs
r?c*r*£»rtnr>fmt
Volume 185
and
I
Number 5616
collection
-
customer
in
joined
*
■-
.
.
Effective
|
last
of
^
ft
Feb.
The Cost of British Disarmament
.
Merchandise
November
By PAUL EINZIG
year.
000
by
shares,
$600,000
stock
a
value
par
The
the
creased
by. the
.
National
Beach,
from
Fla.-was
$50j,OOU
in¬
$10)
'
ft
ft
Iron
its
stock
dividend, effective FebriT
•
*■
•*
.
b^
value $100).
ft;ft','
.ft
/'
.
The Austin National Bank,
Texas increased
tin,
capital
from
the
from
$1,375,000
sale
p ©
{
Aus-^.
l.i-t i
luclance to
such,
1
c a
not cover it.
to
$1,625,000
Paul
by
<65 000 share,
(65,000. shares,
in ..tee,
financial
•
L-
^
.
.
"Higher Prices and Less Savings
bur-
'nar .value
par
-
the Currenrv hnnroA/ioo
effective
k.,~;
business
Feb.
Bank of
with
11
11
'
ovnn
nf
as
cose of
the
merger
stock
of
Phoenix,
stock
common
merger
$250,000,
and
National
Ariz.,
title
Bank
with
$6,300,000.
effected
was
charter
of
of
of
The
under
"The
the
Valley
Phoenix."
x,ozrv,vvu
1,390,000
suux ess
shares
of
stock of the par value
surplus
of
divided
?4,005,041.
of
and
and
not
un-
less
than
,
,
Frank
of $5 each;
$17,225,000;
profits
.
cuiiimcm
common
<ji
F.
;
..
..
Risso, Vice-President
Personnel
Bank
,•
.
of
Relations
America,
Fran¬
cisco, Calif, has been promoted to
a
newly created post in the state¬
wide
bank.
that
•'
•
President
S.
Clark
Beise
Vice-President
been named
because
said
Risso
had
President's Assistant
•—Personnel.
whether
"In
relinquishing
this
personal
as
a
counsellor, particularly of
nior
branch,
officers."
and
-
.
as
,x v/iv.
ao
Officer
and
position
on
my
Risso will represpecial personnel
staff,
me
role
Xixo
Relations
accepting
sent
his
xvuu^Mioiixug
'
'
^
with a scheme under which employees would qualify after a
short period, its appeal to the
electorate might induce the goveriiment to follow the example.
In that case a heavy deficit, in
addition to the very subtantial
actuarial deficit of the existing old
age pension system that is expected to develop in a few years,
would be inevitable.
The more
will be saved on national defense
the stronger will be the tempta-
A-fnn
/I
of an illusory
15i
crsc*
Id
Te Be Held in March
our se-
administration
The corpora-
CHICAGO, 111.
tion—its managers, workers, cus-
tom^rs, community, and investors
'be
wm
the subject of the fifth
Management
annual
snonsored
Chicago
by
Conference
the University of
School
Business
of
Mr. Beise pointed out that Risso
been with the bank longer
Fat^
higher
social
service
benefits or higher
jvage-, so t.iat
the economic benefit-on balance
ft™ be
to
£2
to
amount
were
multiple
are
be
week
a
most
the
offset
increased
by
earnings.. If, howev
ment benefits are
ure
which
.
insures
commerce,
among other:, posts, will be the
principal speaker. He will talk on
"The
Corporation
in
'
the
Ug-
Other
So it may w
reasonably fore the amounts
programs
,
,,
,
will
be
that
Jong be_
proximately
panel
sessions.
Ap¬
business
and
attend
the
executives
financial
conference annually.
saved
true, the government made
gesture, simultaneously with the
announcement of arms cuts, by re¬
social
some
As
service bene¬
result of the impending
a
increase
of
some
social
$8,000,000
service
contributions by the benefic aries
deficit
on
out
services
social
which xxoo to ww
has k ^ be
W XXXLii
concerned,
CUIIL'CX 1XCU,
ered
the
i
ji
/■
cov-
vvy-
of
taxation; \Vill be reduced siigntly.
Buf if th^ long-;.''
suffering taxpayerris inclined to
fce grateful for such small mercies,
he
only has to remember
the'
pressure that is in operation in5
of
'
subitantial
a
increase
retirement pensions." The savings
than any other person on the aetive staff, 44 years, and that he
is .well acquainted with Bank of
employees should be entitled
r
+'/' *,f,,**
i
.
43A% Convertible
r
Subordinate Debentures due
March 1, 1977
aAe a oare
America
DAYSTROM, INCORPORATED
r'S/
in
.
Mr.
Jan.
operations and its perthousands of whom
he
6,
joined
1913
as
a
the
savings
on
teller.
For a short
period .in. 1909 he had
been employed as a chauffeur for
Bank of America Founder A. P.
Giannini.
Mr. Risso
named
was
in 1918 and in 1923
an
officer
promoted
was
to Assistant Vice-President.
Serv-
ing
in various branch and administrative posts he was named
Vice-President
vanced
four
;
to
in
his
1937
present
and
,
ad¬
position
later.
years
a
measures
to
Price 100%
pension
equal
to
half their
the time of their ret re-
It was first put forward
ment.
bank
the recent
drop in the ocean comPared
with
the
cost
ot
ih s.
planned increase. The idea is that
wages at
personally.
Risso
by
the Socialist
v
(and accrued interest from
March 1, 1957)
?y
opposition, .but there
is every reason to believe that the
government too is also considering
it seriously.
"
'
•
'*
employers and employees:
is
as
business
-
1
of
a copy
ot
a
the Company
may
-
But if, *
probable, employees sho'l t
qualified to full beneiits
having contributed toward
become
after
Prospectus describing these securities and the
be obtained within any State from any
Underwriter who may regularly distribute it within such State. The
securities are offered only by means of the Prospectus, and this announce¬
ment is neither an offer to sell nor a solicitation ot any offer to buy.
Upon request,
.
Admittedly the Socialist plan
does not go so far as to su gest
that the taxpayer should co itribute towards the current charges of
the
scheme.
The
proposal provides tor an equal contribution by
Goldman, Sachs & Co.
R. W.
Pressprich & Co.
the scheme for something like two
Joins Columbine Sees.
,
i
years,
tail
Special to The Financial Chronicle)
DENVER,
Burnell,
Edward
Colo.
Richard
E.
—
H.
Howard
Jones
have
Sargent
J.
and
been
then the scheme would
Obviously,
called
to
the
Securities
staff
Corp.,
of
Columbine
1780-
Eroadway.
South
the
upon
shoulder
added
en¬
gigantic actuarial deficit
that may well reach thousands of
millions
of
pounds per annum.
a
the
would
State
sooner
or
burdens
of
later
su:h
be
"The
menting
BIyth & Co., Inc.
Lazard Fr&res & Co.
to
a
February 28, 1957.
deficit.
Economist,"
on
when
com¬
the Socialist prcpo^al,
-
1,200
a
fits.-
1W7
.
Pension Increase Demanded
ducing
1957
of the confer^-
'
It is
Eco-
•
.
ence
demand
Wa*es
tend tr» hpmme bigger and bolder.
to become bigger and b
+or>a
,
a
Domestic
and
resulting outflow
u*tes
retire-
raised to
de-
wages
of their —. wa*
high of gold abates,
the
Director of the Bureau of Foreign
World" at the luncheon session.
.
r
con-
-
pective incomes after retirement, J
v><uiiiv
of the
Commerce, Director of Economic
Research for Dun and Bradstreet,
supplementing their pi o
savin<, up. some
®
^haree
in the economic
situation that would be achieved
the cuts on
the balance of payments would be
feel
in
nomic Advisor to the Secretary of
raised to a through the effect of
workers
is
pr™,rarn
strong reasons for fearing that
any improvement
at
of that figure.
Today
need of
1
effected
knows
and
and Director of the Merrill Center
for Economics, who has served as
.
if old age pensions,
sharply,
present,
a
of
favor
-
fall
which
widespread
feeling in Britain
that, amidst
pi t:vciiiins.
prevailing
wnuuiuna,
conditions,
""J
anything
that is saved through arms cuts is
1
liable to be.igiven away a.i the
form
keep the scheme
irresistible.
So there
savings would
KT
There is
to
scheme by
the extent of small
gu V VJLJUilVlit
governments 'argument
to
that effect is viewed wi.h much
had
sonnel,
i\
Managem'l Conference
Foresees High Wages
wages and profits earned by emApart altogether from this
ployees and employers,
indeed aspect of the defense cuts, there
the
the
skepticism.
are
question of financing
saving part of the
would be no
subject to critic:sm
weakening of Brit¬
ain's military strength will really
be offset by a corresponding in¬
crease of ner
economic
strength.
the
Personnel
are
many
thinking
British
entertain
serious
doubt
people
Officer
Sail
*
intentions are to keep the scheme Program, is"in charge ofthe'"eragenuinely self-supporting, politi- ference
cal pressure in favor of spending
.
'
on it the money saved through
Hard L. Thiop, Piofessor oi
defense cuts might well become Economics at Amherst College,
in the form of higher prices, the
the
on
total cost of the scheme.
The cuts
XUV
capital stock of $6,950,000, divided
for
"
The
At the effective date of
merger,
the receiving association will have
into
xulw
military strength
present
preFent
of<:continent.
into The Valley National Bank of
Phoenix,
"
intentions
now
in BrHaincn I atmosphere ployers their share in the new
amidst which the government: superannuation contributions, and
w°uld have found it difficult to the employers would be in a pOjustify the ma ntenance of its sition to pass on to the consumer,
Flagstaff, Flagstaff, Ariz.,
common
—
,
.
.
.A merger certificate was issued
on Feb
11 bv the ComntrnlWWf
ing
a
to fenses for the sake
is
•
..."
7
'.den of tap
Nor .is this the whole story, tion to cut down the period of its" Executive Program "club, SatBritish forces stationed on her Amidst prevailing conditions of contribution payments that would urcpsv March 9 Robert L Reid
territoryi together with the slow employment the workers would be qualify employees to full benefit. Tss^ant Professor of the school
pace of German rearmament, has
in a position to J33SS OII to tne em- Even if the ^v v ^* ittxi****•-» jc~ —- —— ——.(Clxxu. Director of the Executive
pass on IU tilU III** Li v cxi xx. iiit government's present and
i*<l c
in
th*
„
$25).
.
LinziR
a_iair
share
io'
scheme
a
naked the savings effected would
as-
-common
hew^ stock Se"et^e
of
E^.14
mt>^14
-/.J
$1,250,000
known that the government,
came
a
to the Treasury
necessity. Would be so heavy that even if
Germany's re-^Britain
were
to disarm
s ark
:
stock dividend and
a
by putting forward such
after
sume
stock
$1,375,000 by
its
a
•'
•■'.'*
,-
to
suvun-
strengthening of Britain's ecoiVllC
nomic defenses. But this is a
very unpopular line to take, beadequate number of contributions cause almost every section of the
before reaching retiring age. But public hopes to derive benefit
if the Socialists should come out from the lowering of defense
costs.
"
$100,000
par
that,
mc
intent on
make the scheme entirely selflnv
Supporting by confining it to employees who will have paid an
111CUVV.
a
even
present
ment's
^anxious not to lose ground among
large,, extent, the electorate, is seriously consid-•
t-the presentjeririg the idea of stealing the Op;
reduction has. position's
electoral
thunder; by
'become
a
adopting"its scheme. The cost of
in¬
Irom
(2,000 shares,
tion oi ine suieinc.
scheme. Yet within 48 hours,
this scathing condemnation
cf Socialist irresponsibility, it te-
Er tish
realize
ters
to" $200,000
ridicule
if these quar-.-
-
capital stock
common
in
quarters,
National Bank
Mountain, -Michigan
creased
many 1
_ft
The Commercial
will mount.
wages
shared
$bou,uoJ
to
new stock, -effective
(60,00U shares, par vaiue
'
15
.
of
i>ank
saie of
Feb.
of
stock
ivT...
Atlantic
of.Daytona
prices and
Eng. —
Eng.— The dismay remarked that its author must
caused among Briiain s A lies by have worked out its arithmetics
2-ecent announcement of oras- while Having his bath, and that,
asWillie
having Ills Uctm, duu ma U
tic
cuts
in the
armed forces is the Labor Party exposed itself to
LONDON,
ft
capital
common
First
pensions providing half of annual wages. More¬
Dr., Einzig anticipates individual savings will decline,
over,
(30,Uod
-
*
.
that it is not the government but
industry that will pay the additional amounts will make no difference to the inflationary effect
of this expenditure.
One cannot help feeling that It
ing on to the consumer the total
is short-sighted to jeopardize the
cost of the new scheme.
There seems to be rather more security of the country and of the
than a possibility for the adop¬ free world by an untimely weak¬
of Britain's military detion of ihe scheme: The govern- ening
in increased
to $750,-
uiviaend
-
resulting sharp fall in savings
produce *a very strong inflationary effect, as a result of
which employees and employers
would find no difficulty in pass-
result of
Eritish disarmament i3 viewed with skepticism by prominent
British Economist who fears such savings will be dissipated
14
most
that
would
Whether there will be any net savings achieved as a
ihe/common-l
capital stock of The Security NaBank
Savings and Trust
Company of St. Louis, Mo. was
from
are
5
•
tional
increased
the choices. ,tary expenditure sre expended oik
people would live increased social service benefits,
right to the limit of their incomes they are expended several times
while in employment.
And the over on higher wages. The fact
comfortable existe$ce,
the
o|
15
(1003)
The Commercial an$ Financial Chronicle
.
service department.
Dykstra
Bank
division
.
Harriman
Ripley & Co.
Incorporated
Lehman Brothers
16
The Commercial and Financial Chronicle
(1004)
general I expansion ^of
trical .use,
THE MARKET... AND YOU
dehds ;haye
continued
stalemated
such
their
in
a
broad
index
could
-involved
ests
in .the
Royal
in fact, and it
list
of
*
4.7 " times in Shell
com¬
panies where an even larger
payout would be in line with
developments'. The company's
minor troubles, several, years ;
a
well shrouded.
#
**
There
%
International
oils
and
Generally they
seemed a bit more willing to
respond to high hopes than
to sell off when the
picture
pany's
*
shy¬
stock-of-the-
recommended
that
on
same
com¬
Transport,^
results. In addition
is virtually a must for
jet as well as the missile
were
common
the auto market.
if.
if
if
the
.
^General Motors slipped to
stock field
argument still raged over
low since the stock
whether the times called for
has
Bessemer,
been
as
Governors
of
;■
;
t
„
/
.
.New Low
*
<
■
-
m
Volume
r
Out 4 of
^
this
Welter
came
^Aluminum
-
late
in
1956.
It
illustration
have
was
of
"
'
;
back
cut
v
»
"Regulation ;of
New
Activities in
of
the
chairman, Department of Fi¬
Syracuse University, will
nance,
Federal
ference.
Re¬
Seymour Fabricant
With Wertheim & Co.
Wertheim & Co., 120 Broadway,
on
New
York
the impact of expanding consum¬
New
York Stock
Mr.
Balderson
er
credit
at
a
will
speak
the national economy
on
noonday luncheon
are
open
of
on
Syra¬
City, members of the
that
announced
cant
Sessions
Fabricant
was
President
of
sales
campus.
finance
companies;
li¬
Exchange, have
Seymour
is associated with
to officers and employees
University
cuse
con¬
'
formerly
Wm.
E.
Fabri¬
thfsm. Mr.
a
Vice-
Pollock
&
Co., Inc.
Veterans Launch
Essay Contest
For Hospitalized & Paraplegic Veterans
'
t
'
*
'
Mack
-
■' if
"
sisted
Trucks;
?
.*
•
^
onjy
on
which
Sub¬
stock dividends* ;
!
around
from their highs, were
considered the group
reasonable levels by
fact
*
been
30%
;
,
shares,-' which
a
the
on
Finance
be academic chairman of the
it Conference.
year. It, too, was able to boost
earnings a fat 55 % on a sMes
back at
that both buyers and
boost of less
than a third
the bar¬
sellers are pretty much on
Which is another good show¬
element. Both
the sidelines pending some gain-hunting
Reynolds Metals and Kaiser ing when the trend is* other¬
more valid reason for action.
wise. The company entered
Aluminum, the smaller pro¬
this year with a backlog that"
j
ducers who nevertheless ac¬
What is perhaps more
was
nearly two-thirds agaiji:
count from some half of total,
significant about the market's
U. S. capacity together, were' is large asit. was the year*be-%
action, or lack pf it, is that the
forew
r for:>
both generally regarded as
violation of a so-called "sig¬
this year's results.
candidates for higher earn¬
nal" area earlier this month
was
unable to budge most ings this year.
if
if
if
; Food Machinery & Chemi¬
investors from their positions
cal also is confidently predict¬
and the high
Buying by Carrier Corp. in
margin require¬
Elliott Co., power generator ing higher earnings again this
ment has kept
margin calls
year on top
of last year's
and :forc°d
seUmg to an in¬ maker, focussed attention on
the,latter which, is one of the: record-breaking results. The
significant level.
(
company* is emerging as Can
many cases a round where
The Average Questioned
important factor in missile'
book value" is
substantially in
As;happens when the blue excess of market value: In handling and launching ap¬
chip-loaded averages give line -with the heavy utility paratus as. well as military ;
vehicles which give it a broad
pessimistic signs, there has plant expansions, Elliott is a
graphic
and
16 for the Fourth Annual
New York State Consumer Cred¬
fre¬
little to inspire any general
for several years; has niade
have been prominent on the
ijiarket acfion and the turn¬
enough., progress recently to
selling, fort months now and *
over* dipped to
a
new low
resume
cash * payments this
since
Banking,
Sales
April
quent on the new highs list.
Unlike the blue chips where
1
Bargain-Hunting in the
Aluminums
"Consumer Credit and the
York
System, will be in Syracuse
serve
was
support.
Of
SYRACUSE, N. Y. — Consumer
credit leaders, headed by C. Canby
Balderson, Vice-Chairman, Board
hunting among the quality is¬ pinched profit margins are
sues
already well deflated, or starting to be the pattern,
split late in 1955 in advance
whether it was a case of only General was able to
post new
of
publication of its 1956
following strength in desul¬ record earnings last year- Its
earnings report. This was as
Cooper Bes¬ new method of making portbleak as anticipated although tory markets.
the earnings were the second semer, incidentally, was one land cement is only arriving
of the real features
on
at the output stage add com¬
best in history. Once the bad
news was
out of the way, strength including several ap¬ pany estimates forecast better
pearances in a row on • the earnings through all the divi¬
hvo w ever,
the stock met
daily lists of new highs.
' x sions this year.
moderate
a new
counsel ?to CJoyernor Rarrir
a
Credit Conference
should find reflection in this
something of a
debentures o f American & the
disappointment, notably
Foreign Power with their 6% ages.
Chrysler which was unable to
if
if
if
yield and the higher dividend
muster
any
i m p r ess iv e
return over the common stock
General American Transstrength although the trade
on
Elliott
Co.V convertible
portation is another
reports indicate the company
second preferred.
"strength" item and, although
is in a good rebound toward
if
if
if
more restrained than Cooper
capturing a bigger share of
In the
were
Dr.
sumer,
N. Y. Stale Consumer
being year's
about, including the nickel
equities
at the university will in¬
Persia Campbell, cori-;
clude
10.3-times ratio for Public Interest"; William R.
Standard Oil pf New Jersey
Brennan, Jr. deputy. superintenwith the present market plac- dent of banks. State Department
rather
,
bandied
Motors
new
of the
tions than
bleak.
*
bit of
common
commitments
well-as; col-;
Other speakers in the: all-day
session
man, on
against
as
t
*
State"; Jerry-Miner, Survey
Research Center, ' University
of
Michigan, oh "Factors in Consume
er
Credit"; and Dr. John Chap¬
time. coincide with those of the
Earnings Optimism on Nickel "Chronicle " They are presented man, emeritus professor of bank¬
ing, Graduate School of Business
International Nickel which as those of the author only.]
Admihistration, Columbia Univer¬
dominates the market in that
sity.
metal is also-umong the issues
V Dr. Eric W. Lawson,* professor
widely
one service were Phillips
and earnings are" being pro^
Petroleum's
convertible
de¬
jected upward for this year.
bentures. And such items as Nickel
prices were only
higher yields on senior obliga¬ boosted last December and
up.
*
a
month recommendations from
the Middle Eastern situation
was
one
still
from
away
stocks for
given to swaying with the ebb
and flow of hopes of getting
cleared
was
ing
were
lege teachers.
meager
again this over-diversify. In any event,
week, most pivotal issues the most heard advice from
ing "no value on the potential
given to backing and filling brokers generally is to con¬ back stemmed from copper of its Middle East
holdings.";;
that solved little and kept the centrate on issues and ignore
shortages and that is an un¬
(The views expressed. in this
future direction of the market averages.
,
*
likely development now.
article do not necessarily at any
if
if
if
rut
lenders; commercial banks
credit1 unions
-and
I)ivi- | Dutch^Shell Oil coinbine. One
increased, analysis* indicates -a markettimes-cashiflow of
v.'Thursday, February 28,T9j57
censed
elec¬ over, if roiinds out the inter¬
year:
been
twice last year
is still on the
By WALLACE STREETE
Stocks
better ihis
even
*<
is expected to do
.
-
Veterans present portrait to Surrogate DiFalco at Essay
Con¬
Rothbart, Joint
Chairman; Charles O'Brien Murphy HI, Wall Street Post Com¬
mander;
Surrogate • DiFalco, Harry A. Sche^veikert, Executive
test
:
candidate
some
for
even
b
e
11
-
stock average
#
;
•"
A
■
.Exchange Debutante-•.
\
<
;
*-
I
was
attended
ealled the "S. Samuel DiFalco Paraplegic Award"
>
^
by1 the Eastern
Paralyzed Veterans Association.,
t
Shell
is the
:
by representatives of the First
Army; Third. Naval District arid i-ll Veterans Hospitals in the area;
Heyman Rothbart, Contest Chairman, announced that an .iddiluncheon
*
An Undervalued Stock
.
;
;
-
tional feature of the contest is the establishment cf a new award
*
.
.>•••■
.
"
-The
:
outlook not hinted, in its firm
for not truly profit recovery this year than
representing the entire mar¬ last year's estimated improve¬
ket, an age-old argument. One ment. It is also considered a
of ihe financial services con¬
possible entry for the highersequently »will compute a 500- dividend category.
<
-
Heyman,
are
.
e r
name.
right
' The Ninth -Annual. Essay. Contest for-Hospitalized arid Para
plegic Vetei'ans was launched Feb. 26 by Wall. Street Post
No, 310, V.
Wjat; a Testimonial Luncheon' lo Surrogate* S.
; Samuel DiFalco Subject of the 1957 competition is "Citizenship,
What It Means 1q Me."
....
,
of the averages
to
%
„
been much criticism of
Left
Secretary of the Paraplegic group and Vincent .Trotta, well known
artist who ha&-sketched-more thanrl;200 portraits of G.I.s overseas.
.
>
Launching.
Transport & Trading
latest of the * big foreign
■x
•
The
,
invocation
was
offeree!
Dineen, PA., Pastor of St. Agnes
dinal Spellman at the luncheon.
*
by
Monsignor
Aloysius
C. *
Churchy who represented Car-.
...
...
..
_
hourly in the
oil
Commander Charles O'Brien. Mprphy^ III' of -Wall Street
companies being- readied
customary divisions of indiisr
: Post announced that the new* prize
wili- make- non-hospitalized Another company regarded
fpr N:, Y;"Stopk Exchange;
trials, rails and utilities, but highly
5 veterans eligible for the first time in the history, of the contest. likely to continue-to listing^ which usually kindles'
; He -stated" that the-humanitarian interest of*. Surrogate' DiFalco
.
with the solid assist of repre¬ show better results
despite a bit more, interest hi the5 is¬
and other public-leaders had made" the.,contest a success* ovpr th#
senting nine-tenths - of the the over-all economy is Gen¬ suer Like most
?
—
; J-;y
;
foreign outfits, ;-'years.'" - f
-♦
■
s
.
.
.
total value of all the
stocks
on
N.
Y.
Stock
Ex¬
change. With the. m a r k e t s
continuing ultra- selective,
,
^
common
eral Cable which boosted its
a
case
can
bev made that the ./
profits handily Igst. year, and stock is tinder valued'^ when
with all the stress on
moder¬ compared / with " the larger..
nization of
iiome wiring,-plus
American'
companies.
More-v
*
i
:
A
wcll known
artist, who has
since the \oritest
-
i
more
,
Vin^ritTrbtta,
;
sketched-portraits of the prize winneis
,
portrait^ of the Surrogates was presented, by
than
action._
vvas
established nine
years ago.:
He-has also-:done,;.
1,200 portraits of G.I.V in ICorea and other^
theatres.of !-
'
Chicagoland Utilities
•
by Purdiasing Agents
Price Pressure CHed
N.A.P.A.
indicates competition and supply of most
survey
Forum
*
^
materials wiH be abundant in 1957 with stronger price resist¬
Majority of purchasing executives estimate 1957 hours
employees would remain as high as in 1956. <
While
fuse
purchasing executives re¬
agree entirely
with the
talk of a 1957 recession,
to
current
according to the com¬
opinion
of
purchasing
agents who comprise the N.A.P.A.
Business Survey Committee,
they
are,
Chairman
is
,
Chester
F.
Ogden, Manager of Purchases, The
Detroit - Edison
Company, exer¬
policies.
-
members
to
number
days-and-longer ranges.
remains high and
27% say it is better than January,
55%
the same and
18% worse.
New orders are being booked in
Production
satisfactory volume and 27%
them to be better, 50 %
the
port
and 23%
While
prices
are
I continuing
upward movement, there is
their
More¬
prices.
their
further
erally unwilling to increase
inventories, or to buy any
the future
into
needed mate-;*
rials, might lead to the conclusion
that they believe prices are not
in the
going to rise much further
immediate period ahead.
It is evident that,
solvents,
items,
steel
brass,
steel
scrap,
news¬
Copper
are:
aluminum extrusions,
rubber, lumber and
supply
Nickel,
are:
cello¬
and
steel
stainless
phane.
happening, employment has re¬
steady for the
is
As
Real Estate Investment
guide to future sales
a
ex¬
production plans,
pectations and
purchasing executives were asked
to estimate
if the hours worked by
of their companies
remain constant
or
decrease
in
the
next
few
months.
Sixty-five per cent
the employees
increase,
would
thought they would be as
high as
1956, 26% thought they would
be reduced and only 9% thought
Banking Firm Founded
Fund
higher prices.
general price trend is
there are real indi¬
cations that the somewhat forgot¬
ten
element
of
competition* is
the
While
still upward,
again being added to the picture.
Reductions in the price of copper,
and rubber are indica¬
■ price
pressures that
been built up.
Buyers, gen¬
steel scrap
tive
the
of
have
erally, expect most materials to
be readily available in 1957. They
predict that, in view of this ade¬
quate supply situation and the
"many 1957 wage increases that
have
already
been
negotiated,
many
a
companies are going to face
squeeze."
real "profit
*
build up
inventories to protect
against any possible future
certed
price
there any con¬
efforts to reduce them. Ex¬
increases,
nor are
commitments
held to a minimum.
cent of the com¬
members
say
employment
from
remains
unchanged
month, a
decrease of 4%
category.
feel
has
their
This
the
^re
to
States'*.
Paul A. Fund, wellin real estate financing, as
Headed by
known
President,
intention to
it
is the
company's
function in this field
the investment banker in
does
as
corporate field.
the
the
At
satisfy.
the
was
an¬
Milner,
a
real estate field and
the
of
dean
Joseph
that
nounced
it
Speaker
2:55 to 3:40
Forum
is
various
Forum
Chairman
—
wonder
have
they
formerly
and
Speakers—Marvin Chandler,
"backed
their
a
poor
growing
lay
substitute
"Five Year
up
Plans"-
Named Directors
r«
j
Nev.—Joseph P.
VEGAS,
Edwin H. Herzog of New York
City and Amon G. Carter, Jr., of
a
of lines, Inc., at
Street under the firm name
Western Oil Securities Co.
■
1
;
Curington Opens
f_TT
NEPTUNE BEACH, Fla.—-James
E. Curingtbn.js engaging in a securities business from offices at
1001 Penman Road. He was formerly with Thomson & McKinnon.
*
__
__
the regular meeting
of the Board of Directors,
.
J7
J
livestock and dairy
not as large per
capita as they were a quarter of
a
century ago.
Half of the total
labor force is in agriculture.
In
the United States it is about 10%.
As the Soviet farms are mecha-
+
.
Mr. Herzog is a member of the
New York Stock Exchange and a
partner in the investment banking
fjrm 0j
Freres & Co. Mr.
Qarfer js President of the Fort
worth Star-Telegram,
„
With Denver bees. Co.
J. G. Nichols Ope US
is made to free
(Special to The Financial Chronicle)
DENVER,, Colo.
_
DALLAS, Tcxss
for work in hesvy
army,
soon
securities Fort Worth, Texas, have been
business from offices at 300 Wall elected directors of American Air-
are
the
will
they
c
LAS
grain,
and
are
menacing every
bette? Start mak-
Pugel is engaging in
per
capita5, keeps 'going
The three main, food prod-
effort
Reception and Cocktail Party—,
Ballroom—4:45—6:00 The participating comPa™es wil1 be hosts*ac.h compan^ will have an exblbl* 111 *be Ba* 100 •
and
horse"
Western U/li 06CS. Formed
heavy
has not been able to keep
with the increase in population,
therefore, the agricultural
an
more
They had
friends for
\i/
of
laborers
ivronp
increasing nroblems
need them-
in the output of
products
the
own
John G. Nich—
instead ols is engaging in a securities busi-
increasing the farm production,
Ver
from offices at 6603 Banders. Mile
ness
—
Leonard J.
with Deo*"
po&fjG' is now connected
Company,
Securities
High Center.
consult¬
executive of
Life Insurance Co.
the Prudential
This advertisement
is not
named
been
have
America,
of
an
an
The
offer to sell or
a
solicitation of
an
offer to buy these securities.
offering is made only by the Prospectus.
Vice-Presidents of the new com¬
Henry Gale, prominent at¬
recently
Zneimer,
M.
Sidney
V i
NEW ISSUE
" "
-
'
■
resident counsel
Vice-Chairman of the Board.
and
Loeser's
been
.
has
stores,
department
$5,000,000
a
Namm-
e-P resident with
c
Southern Indiana Gas and
appointed Treasurer.
fill a
needed service, undertaking orig¬
inations, private placements and
the development of marketing and
distribution
procedures
in real
The
estate
new
Electric Company
will
company
First
Mortgage Bonds
4%% Series of 1957 due 1987
securities.
Dated March 1,
leaves
employment
worsened slightly^
last
in this
19% who
situation
Research &
Management,
Due March
1957
1, 1987
OFFERING PRICE 102.623% AND
ACCRUED INTEREST
Inc. has been formed with offices
at 67 Wall Streeet,
to
engage
Officers
in
New York City
securities business.
a
Wayne
are
R.
Benzing,
President; William F. Byrne,
Treasurer and
and
Elizabeth A. Grant, Assistant
Sec¬
Meader,
retary
All
and
were
Copies of the Prospectus may be
undersigned
and
others as may
obtained in any State only from such of the
lawfully ■ offer these securities in such State.
Secretary; and John
Vice-President;
W.
Assistant
Marache & Co.
Kuhn, Loeb & Co.
Treasurer.
formerly with Granbery,
J.
President; Edward D. Sheehan,
Vice-President; H. A. Diekmann,
been
John J. Renz, real estate
ant
«
Russell
Eddy.
.
jsj0
up
of
3:50 to 4:35
Northern Illinois Gas Co.
Had Better Become Friendlier
industry at
agriculture. The
agriculcommodities durir*g the last
built
industry
Subject—D evelopments in
ad-
military
any
C.
Atomic Power,
neutralized
25 years
nized,
an(j
William
Speaker-Willis Gale, Chairman
Soviet aggres-
any
—
of the Board-
system of
them and
ever
jng
expense
ucts;
the
chairman
jsjorby.
they have made have been
vances
little aid from
very
propaganda
down.
Oates, Jr.,
Commonwealth Edison Co.
they have been un-
successfui
They will find that Marxist
output
James F.
hi?/" hoping To/l." depression "in" the vie/president
TJnit0rl
States
But
thev
have
receive
tural
—
Chairman of the Board,
has antag-
surround
foUow
jn
gjon
and living standards within
Soviet, the starving Chinese
them.
which
would
irjcreasingly
increasing Russian heavy industry.
and
military demands are con-
the
E.
Torrey, Jr.
from which atomic retaliation
It looks very
as
enminate
to
bases
though China will be
with a real famine during
more
time
same
been
Asia
Southeast
coming year and
in§
Light & Coke Co.
Chairman—Clarence
Form Fund Research
employment as greater this month
than in January remains at 17%.
mittee
kind to be established
United
the
in
believed to be the
is
its
of
Fund
Again, in February, practically
no change is noted in the employ¬
ment statistics.
Those reporting
per
it
munity
first
Employment
Sixty-four
Com¬
being
are
tended
into
as
faced
the
financing,
is announced.
Conceived to
function within the financial com¬
torney, will act as
reports
changes aren't statistically signifi¬
cant. There is no apparent desire
to
Fund
Forum
East
govTed 'afnTfor6 many' years^has
Chinese
add^d responsibilidemands that the Soviet
and
difficult
The
firm to spe<^ialize~ in in¬
a
pany.
Inventories
this month show
that
purchasing executives are
making determined efforts to hold
their inventories at present levels.
So little movement is-noted from
last
month's
figures
that
the
The
ties;
have
vestment real estate and
evidence of increased
is
There
the
of
brought
increase
The
of
Formation
the Hungarian uprising
Malthusian Specter
securities.
pany,
buyer resistance to
Col. Herbert G. King
for food.
undertaking
originations, private placements
and the development of mar¬
keting and distributing real estate
increased.
Commodity Prices
have
in
techniques
new
in
they would be
to employ
Company
near
to improve* relations with
■the
United
States,
the
Soviet
leaders
have
only made things
worse and now their handling of
victory
communisrn
will
The
the
trying
"n"a"y,
mained remarkably
past three months.
to
Communists and the expansion ot
much
short
In
Peoples Gas,
have
put an added
strain upon the
Soviet economy, which is already
at the danger point.
Instead of
in
meddling
forces
The
print cloth.
steel,
whatever else
side
down
the
On
2:00 to 2:45
increasing difficulties with
could master.
fuel
oil, gasoline,
coal,
pigments, dyestuffs, lamp
bulbs, manila rope and hemp.
and
The
they con¬
fidently be¬
lieved
they
side are: Nickel, sev¬
Forums—Adams Room.
Russia for
to
generous
the Satellites and the unfortunate
that
print,
paint
than necessary to
insure deliveries of
as
eral
the fact that buyers are gen¬
over,
nomic
certain
too
agriculture.
the great eco¬
The most
Perrine;
R.
George
—
Commission.
been
to
succumb
Speaker
quality of the farm land
the United States/ Nature has not
be
first
the
short
the
12:15 to 1:45
Luncheon—Ballroom.
Chairman, Illinois Commerce
fire."
will
they
-
one
in Russia is far inferior to that of
begins to look
as
though
steel items
structurals, plate and pipe.
On the up
buyer
strong evidence of increased
resistance to higher
such
and
.
However,', it
to get continue to
items
nickel and
be
in
items
supply is diminishing.
difficult
worse.
of
number
that the sub-
>
The program for
re-
Adams Street.
-•
Russian farmer only
feeds himself and three other
Russians.
The growing season is
shorter, the annual rainfall is less
t hei r/
the
of
Commodity Changes v
Specific
The
.
a
cans,
woul d
pull
significant change , is re¬
in the lead time require¬
ments on either MRO or in com-?
mitments for capital expenditures.
:
,
"chestnuts,out"
:■
No
.
"
,
i
of.
capital /-'
in the 90-<
reporting
;
gen¬
crisis
ism
ported
re¬
same
eral
days increased from 24% to
30%. This resulted in a drop in
120
.
sequent
to 30
the
be
States and expecting
largest single grouping, 37%, con¬
tinue to buy in the 60-day range,
but those limiting their coverage
abundant
will
.
„
For^-eral years soviet eaders whereas, oneand 20 other Amen-. luncheon, the fotumsand the
American farmer ceDtion follows'
hopefully predicting an feeds himself
'
economic depression in the United
The
days ahead.
supply this year, with competition
developing in areas where it has
not been present for some time.
materials
a
have been
hand-
buying
are
60
.
—
,
reporting
of.Jhe
who
to-mouth
in
in
70%
now
are
theirbuying
Many predict that most
caution.
cising
King in
of
shortening
production materials
on
again evident this month. There
is
posite
whose
continued
The
lead time
f
meeting of The. Investment Anal¬
ysts Society of Chicago featuring
top management speakers of the
three major utility companies in
the Chicago area has been sched¬
uled for Thursday, Feb. 28, 1957
at the Midland Hotel, 172 West
U. S. A. depression and
are set forth by Mr.
depicting. a lugubrious economic outlook for the
hegemonical Soviet state. \
of
;
by Chi. Analysts
CHICAGO, m.-r-A luncheon
T
By HERBERT G. KING
growing specter of economic difficulties
Policy
Buying
;
Member, New York Stock Exchange
\
U. S. S. R. disappointed hopes
worked by
»
;.
v
•
.
ance.
n
(1005)
Commercial and Financial Chronicle
Number 5616'; .'. The
185
Volume
February 27,1957
Salomon Bros. & Hutzler
1420
18
The Commercial and Financial Chronicle
(1006)
Continued
from
a
—
Insurance Stocks
in the face of the income
are beginnmg to appear,
really bad year as far as concerns
be little argument
can
of
new,
companies
insurance
that 1956 will be recorded as a
i
railed
uranium
be
accident and
ranked
as
is
given here
paratively small,
of
use
.
no
attempt
,
written
Fission is the splitting of certain
the
the unearned
released.
:
sizable
changes
this
in
reserve,
Attention
1955; result
,
directed
when
most
amounts
were
..plus,
United
-
States
Fidelity & Gty,^
Fidelity & Deposit
1956
$886,000
4
•
Steam
Boiler-
2,60l,000:
+
•
+
4,727,000
to confine
2,825,000
10,381,000
6,910,000
not
2,231,000
2,846.000
1,661,000
3,773,000
f
38,000
17,731,000
134,000
4
732,000
3,312.000
4
575,000
6,972,000
.
Glens Falls Ins
Great
American
Ins
the
industry,
writers.
It
22,251,000
517,000
4
especially
be
it
as
is
7,965,000
interesting
applied
to
see
showing will be when the total figures
expectation that, while 1957
than 1956, it will also be
a
may
very
be
a
to
what
of
Stocks Outside N. Y.
Laird, Bissell & Meeds
Members
American
Stock Exchange
Stock
Bell
5, N.
Y.
1-1248-49
(L. A. Glbbs, Manager Trading Dept.;
Specialists
tn
Bank Stocks
to
the
*
....
BANK
Government
In
K>nya Colony and Uganda
Office:
23
B:sh«ipsgate,
London, E.* C. 2.
Head
End
(London)
Branch:
13, St. James's Square, S. W. 1.
Branches In India. Paki«***\
re*-'^n,
Burma, Aden, Kenya. Tanganyika,
Uganda. Zanzibar, and Somali-
^
come
in the
lies
romance
to
water
ocean
provide
all
Pald-Up
Reserve
Capital
£4,562,500
£2 851,582
Fund
04 6S7
The Bank'conducts
every description of
h°nk'ng and
hi<si"ocs.
Trusteeships
also
if
and
Executorships
undertaken
plant, I
a
power
AEC
offers
^
and
a
paoded
j.
.
r.
,
,»
•
to,
cooperate
of' additional
these:
are
be
program
'*
a
ex-
"'*1
'
-
Congress specify "the
expansion,
* .**
That Congress
appropriate
of
u
-
#
as
policy that the
(2) That
extent
,
the
funds.
necessary
will
'
*•
-
(4) That Congress give the AEC
gp^cific authority to make direct
casb
contributions
Ts
model
gQvem_
toward
>
the
capital 'cost of ak reactor to- be
in'gradual improvement built
by an existing, privately- or
in:our technology.. Afio,.. it' «\ay'
publiOly-owned utility:.;
/ »,
come in part as a result of a risi
That Congress
specify that
in the
the
resulting
requirements Tor
power
public,
buildih^
demonstration
a
full-scale
re¬
program
the
(1) That Congress declare
|This is especially tru^
of
con¬
utilities,, both pri-
matter of national
t
series
fQr
way
ihe
My suggestions
state with
^ower
which
power reactors.
competitive
ru^ear
under
research
Proposed Solution
an(j
m
iiv» the.>
• On .tti6vbther hand, I -aiii. equally
confident
that -sooner
or
-later
subject.
Demonstration
makes
vate
..
United^ States wherei fossil
are plentiful and cheap.
.become
"Power
Offers
not just- aiound
is
this
on
The framework 0f this
-
can
that
assurance
informed
an
Program"
ment
Dig,one.,
a
liberty of
I believe that
actors.
General
p
the
for
tributions toward the cost of
the
on
nuclear
--competitive
,and
of
we
the
.
_
return to earth to
cost of fossil fuel..
WharieknowSl0about
What
1
knovv
this
tnis
about
g0 the first-lesson is—
nrst
first
desire
I
of
features.
its
to
mention
^
'
• ->
overboard
,g0
for the short term bat be
,
opUmistic. for. the long lerm.
World
Now
'>
Atomic
want
I
question
of
.
States st-arids in relation
has
called
will
950-acre
site
be
"D
r
esden
located
about
Argonne
ion
50
a
prin¬
'
•
privileged
the
near
10 days
Commonwealth
Chicago,
be
to
dedication
Arsonne
0rI
meats
construction
$45,000,000, It
is
in
Power
Group"
what
States.
has'
Dresden
the
and -Electric
Bechtet
we
of
program
I
a
Note
that
I
for
largest all-
call
Gas
Service Corporation,
Corporation, Central II-
the
Ibetween
privately- and publicly.-owned
systems roughly m proportion to
present
amount
of
private
power compared with the
amount'of public power. -
negotiating
privately-^
nuclear
the
contracts
a n
d-
The
'
or.
with
is
bofn
pubUcly-otfned
Yankee
-Atomic
public
power
Distric{.
Projectys anof be latThis policy snouid the
con-
-
Uni ert
refer
V
Pro--
Electric project is an-example of
the former. The Nebraska Con>
beUeve^^
tech-
prdsent
Under the'Demonstration
gram, the AEC has made
specifi-
•
(6)
That
Congress specify the
general principles
which
on
con-
•
We
England
years
of
or
nuclear
many
capacity
five or
In
my
What
is
as
we
America,
will
should
do..
be
is
which
That,
the
Subsidize Research Cost
Any
opinion,
important
development
tributions would be based,
10
stay in the lead in tech-
nological
believe
as
of overwhelming sig-
is not
we
have
Russia
from now.
nificance.
that
not
may
kilowatts
that
"Nuclear
American
appropridemonstration pro-
be-allacated
gram
utilities.
believe
the
cur
in
-and
..
callv to technical progress.
Edison
of
progress
at
a<*o.
are
w
develon-
concerned"about
nical
what
atonic
.
thp
T
I!have.described
power
Associated with.Commonwealth
Edison
to
an
England
.....
nf
guest
a
ceremony
contract with General Electric for
the
as
Laboratory's
ing Water Reactor
was
-with
^
EvOO-kilowVtt0Experimental Bollat
publicized
race
Ru-sia
•
•
.
been
nower-
miles
southwest of Chicago.
; "
Dresden is based on| the
I
Urii ed
the
for
funds
^
.
-
dwell'on 'the
to
where
The
plant,
'•
"
Race
Power
Chicago Private Power Plant-
Station,"
'
government
ated
atomic
on
term
f0w
a
-t
r
power
our plant.
Be-,
discussing its competitive as¬
pects,
•"
,"
hand is confined to
fore
the
^
for.the
prospects
nuclear plant yet authorized.
Protectorate.
■Authorized Capital
BArelay "J-S500
Teletype—NY
may
fuels
achievement of: competitive power
Writer's
INDIA, LIMITED
land
Exchange
120 BROADWAY, NEW YORK
Telephone:
sider
industry
better year in this respect
We«t
Request
Members New York
full
It is this
unsatisfactory showing.
Bankers
.
the
in.
are
so-called
price. I
valid assumption.
that
take
need
In 1955, the AEC adopted the
sell the second, third,
is
the corner,
in -the
multiple-line
NATIONAL
21 Leading Bank
on
Now
ciple " of
Comparison
Bulletin
the
is
.
.
sufficiently, large sampling to give the pattern, for
will
reaction.;
fusion
millions of years.
'.V
2,654,000
780,000
—
Insurance
a
791,000
4
Fireman's Fund
This is
if
D
Standard Accident
Aetna
a
material -in
elsewhere
world's
4,732,000
Its
shall
public opinion
plajjt of our size an
$15,000,000 less than the
nuclear
day, but to all appearances.
soon.
able
4
-f
I
there
reality.
It
will _be
fact that there is enough fusion-.
Achieved, through the building of
,
4
L
tion.
restating it because
,
4
Amer...._
a
4JC
At the Atomic Industrial Forum
in September, I suggested a solu-
10
contract
means
can
building
accomplishmagnetic field
the fusion
Controlled
some
•*,
496,000
+
Fidelity Phenix
Co. No.
this
that
the
ciiuuxu
...
the
some
f
'
Insurance
$45,000,000
competitive
To
power,
ing this by using
•
Continental Insurance
Insurance
research
about
power
type for
first, we.mayi be
fusion
fori
ses-
Gore
portance that the public
power
controversy ought to be kept out
of it entirely,
fourth■
or
sun? Scientists talk of
+ \1,57.6,000
4,504,000
St. Paul Fire & Marine
Home
of
* Having first-hand knowledge of
the problems involved in actually
"•
4
of
would be
unit
Electric
which operatesi at a temperature greater than that of the
5,234,000.
2,205,000
Maryland Casualty
Continental Casualty
cost
t
the
All
process
$4,964,000
2,516,000
+
fusion
Senator
—_
Reactor
re-.
bomb.
•
by the AEC
atomic plants,
the
subject of
bill--was
"
j*
perature of millions of degrees is
How can we contain a
*
Hartford
t
included,
were
doubt if this is
necessary.
•
3,201,000
4
i___
__
-
•
1955
—
come
one-of the
principal problems is that a tern-
Statutory Underwriting Results
Springfield Fire
nticlear
'generation of
minus in 1956.
-
nuclear
the hydrogen
us
^utilize
heavily
become
to
is
fission
a
accel-
-
sought to bring about
$400,000,000 of
The
costs,
of
course, assume that General Electrie's expenditures will not exceed
power.
"gives
particularly to the turn-over ,from the
These
nuclear fission is controlled
Uncontrolled
is
Gf
kilowatt-hour, or one-third
higher than that from our conventional facilities.
-
nuclear
be
the passage of a bill
which called
the construction
per
produce heat for the generation
of
others did not.
-
-
the atom bomb. In
us
actor
to
while
heat
should
reason.
Congress,
others
the
•
-
Uncontrolled
gives
Naturally this equity will vary considerably
had
companies
some
of
ar®
amount- of
the
atomic
power.
the
as
$15^000,000
light element, may also oe
utilized indirectly in the fusion
process. As the fusion takes place,
offset to the 1956
Dresden
j
same
estimated cost
lightest^ of^elements. Lithium,
tremendous
our
controversy. It has been
reintroduced this year and
may be
the subject of further
controversy.
the
another
premium for the year, to arrive at the adjusted
underwriting result.
types
that
for
from our newest coal-fired
contributions
elements.^ Fusion is the
joining
of
certain
hydrogen atoms which1
of
and
plants.
the
among
Congress,
of
-
plutonium
or
-
contacts
Toward the close of the last
sion
•
power
.
heaviest of
erated for this
about
from fusion.
a
an
point,
types of uranium
atoms,
which
are
basis
the
;«
perhaps you
will be after I discuss briefly the
prospects for making electricity
be noted that, as, generally speaking, higher volume
by the industry, there will be
-.j
A1
in
men
power program
______
not sufficiently con-
this
at
personal
heated
producing competitive
On
Fission and Fusion Power
fused
from
number of
a
issue,
soon.
will
close
know
Everything considered, I do not
disagree with those who believe
disregarding tne that our atomic
power
program
$15,000,000 of research contribu- should be
expanded beyond the
tions, we estimate that the plant
ability of private industry to carry
ultimately will produce power at tbe entire cost.
In my
opinion,
a
cost, including fixed
charges^ —- " •
however, the expansion should be
operating expenses and fuel, of
accomplished so that public power
approximately three-quarters of jg jjot
favored over private power
a
cent per kilowatt-hour. This is
jn fact> the matter is of such im-
In other words, it may
If you are
made to single out units that
was
How
to
offer the greatest ultimate promise,
in the "Wall
or
coolant,
as
Chicago fast September.
sincerely believe,
NPG
Competitive KHowatt Cost,
produce power at the
statutory losses in the form of the customary equity in the change
as
sodium
liquid
; •
in
.
partners
us
Com-
wholly without reference to
public versus private power
overhead
-
.
our
field construction
lowest cost
These companies'
quite precipitous.
was
all
as
uranium
is likely to
poorly.
It should
in
well
as
natural
solved economically, this type
are
small gain, the descent of the show¬
a
they appeared in Moody's
as
Street Journal" and
was
in
utilized.
be
would
where the statutory loss is com¬
even
there is
or
taken
were
showed up
U-238
U-235
means
th™ * breederffo™ example,^the
schedule of statutory results for both
a
ing from the 1955 result
results
the
all
the
and
1
that
providing $15,000,000 of the
contract price as a research and
development expense.
Thus, this plant is being built
entirely with private funds. It is
scheduled for completion in I960.
General Electric
plans to start
core; in other
more fissionable
"breeding" which
We
for
program.
Accelerating Our Progress
are
than is burned up. Hence
term
that
fully of this description), it does have somewhat
premium volume in accident and health, group
It will be noted that
:
the
create
to
material
the
in
used
woras
than
There
years.
substantial
costs.
more
Plutonium in the blanket than the
health, and in hospital and medical, and so may be
specialty writer. Its 1956 showing was considerably
a
incurring
.
U-235
Forum in
own
the plant and is paying thirty million of the forty-five
million dollar contract price. Edison is also furnishing the site and
hit and
The objective is to create
was turned in by most of the big units, a statutory
gain of $6,910,000 compared with a gain of $10,381,000 in 1955.
better
where they will
our
of this pro51em in his
appearance
before
tbe
Atomic
Industrial
Pacific
and
and
and operate
natural
absorbed
more
its
Gas
of
by U-238 atoms to
create Plutonium. Plutonium, like
U-235 is a fissionable material.
while Continental Casualty is essentially a multiple
National Fire of Hartford it
of
50%
fissioning
surrounding blanket of
a
line writer (now that it has acquired
partake
the
from
accelerate
a
of
international
missioner Harold S. Vance of the
AEC j^de an excellent statement
Light
Company,
Illinois
Company,
Kansas
City
& Light Company,
Thev will be permitted to go into
.
Fidelity & Deposit, about 80% of whose writ¬
ings are in fidelity and surety categories reported a statutory gain
of $2,601,000, versus $2,205,000 in 1955, while the great majority of
multiple-line carriers were reporting extremely high statutory
.losses or negligible profits, relatively.
1
over
to
Power
linois
other hand, there is
opinion, in and out
prestige makes it desirable
.
Power
It
with
It is "know
government, -that
is
Company
not faced
are
power.
need, not kilowatts.
the
growing
"fast" reactor because the
a
headed by
erouo
Commonwealth Edison will
For example,
will
the
Edison
neutrons
underwriting operations in the fire-casualty field. Also, this col¬
umn's expectation that specialty companies would show up better
than the regular run of multiple-line carriers of fire and casualty
coverage is being borne out. The combination of lower rates and
higher losses in almost all lines of writings were the undoing of
these latter companies' underwriting.
Normally, the industry will have bad experience in one or
only several lines, but will have favorable underwriting results
in other categories to offset. This was seen when hurricane losses
in recent years were so severe, but were balanced off by satisfac¬
tory results in other important lines of business.
In 1956 even thougn we experienced no devastating hurricane
losses in the Northeast, where the high values had been so hard
hit in several preceding seasons, there were very heavy losses from
ocher storms, tornadoes, etc., in the Middle West and South Central
areas.
Only a few lines, such as fidelity and surety bonds, turned
in a favorable showing, and this fact is reflected in the good re¬
ports released by the specialists in these lines.
Again,
hv
Detroit
that
we
On
.
nrnnn<?pfi
There
accounts
We
shortage of
'
Competitive Nuclear Power
And Accelerated Program
By ARTHUR B. WALLACE
Week
Thursday, February 28, 1957
.
how"
Bank and Insurance Stocks
This
.
cant fact.
9
page
.
project
basis
I
for
signift-
utility,
public
or
private,
ought to be willing to put into
an amount
of
its
justified
own
on
a
the
conventional
cos s'
.
The
ut.l.ty
i
^should
pay
an
amount on the basis of whtch.the
'
Volume
185
Number 5616
The Commercial and Financial Chronicle
(1007)
Foreign Exchange Depreciation
Views Scrutinized By F. G. Shuil
A Sober
"In
leaders
even
are
Warning!
unions, there is
many
little sign that the
trying to maintain contact with
membership. Some seem to feel that union-
their
shop contracts and compulsory check-off of union
dues'have made it
what
unnecessary
for them to know
the members want or need. Too many
leaders live in a world
such
apart—a world in which the
badges of achievement are high salaries,
expensive
automobiles, membership in country clubs and the
other appurtenances
of wealth.
"It is not my purpose
to suggest that any of these
things is bad in and of itself. Nor is it my purpose
to
contend that the
takes
who
a
only true union leader is one
monastic
vow
of poverty.
What re¬
of leader¬
the notion that power, public
quires vigilance is that we in positions
ship not succumb to
acclaim
Each
and
or
one
of
women
good living are the important things.
us
derives his strength from
in the shop; we
extent that we serve
Louis Hallander,
the men
have value only to the
them faithfully and well."—•
Labor Leader
faithfully and well"
all that
can be squeezed from the traffic, and a little more
upon occasion.
Excellent—if serving "them
is meant
as
something other than grabbing
19
The Commercial and Financial Chronicle
(1008)
20
Dollars
Continued from-first page
of
•-
;
jr
v.-'<
,.
"r:
...
TT
^?5
.....
-
,
.
,
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.
...
dollar.
cotftfarfc, the ^selling vpnee waf i>y
•
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nf
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.
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MarlrAl Caam
automaticalljrIncreased'V-EM
'pjjpgj
'5 ^ ;
b.ut •; convertible dntp deserves ' careftil. consideration
intrinsic yalUe.vNow ^nce -iL-isHKe, posiHon in which
since it is lhe, position
f
n
4
n/1
e>.r./nt
fkf"
/a
/
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r
-
•
„
J»
^
i."L.
'
1
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•
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Pni[| PfQtlllCtS
and
-teeVstudy of growing markets vet
ikr
<
.
20 countries reveals tkev offer
er»OA —m«;1_
• «,
-irtU
o
..
nuHioa . market
."-U«
•*•
board
paper,,
r-Pl
*
and
i
capital ^gains',
or
products.
>
;■},
fixing adequate
•'
•Twenty -selected eouritries offer £
potential. $200ftmillioji • mdrket -
<£eturn;
.
paper
lt
,
for
wiinsianaing
uie
met
uh»
sertion .of gain in value in a
transaction is demonstrably
I speak
«d-
—t— ;--*r
-«»—•> -
^
llnited^Statespaperi hoardapd
"
given bear > (he same -name, as m the /Df
false. vCqSerin the rDnited States. > As fa-
pointed ; Out,
of gain in value in terms
;
the
tJmt for the
,
established unit Measurernept of Value irmt be a
of value, thing of value^sinte value cannot/; v f 5
and I assert that where legisla- be measured in terms of a thing - IV
tive
reduction
in -the
unit
of without
value.
The Monetary,
measurement
has occurred and Unit, however, may consist of a cost "is a gain .
«.
z
received market recognition be- thing^ywithout, value, ,as,/m^ .the different .rale^^ mgny .possessionss
^ahd^^
tween the time of the purchase case of our paper dollar, the dec-- if sold at even less than* presently • It will be urged in justification^ rnents; in 20 countries Viewfed" as:
of a capital asset and that of its laration,that-its value is identical established market -prices -would of the action of government agen- -potehtial growing markets lt pbe-'
sale, recognition must be given with that of.-.the standard Unit show a handsome- dollat- ,profit, cies thatVmarket recognition of sents xurrent economic infofmathis'r e daction in ascertaining of Measurement being - nothing .although" as* shown, .by..replace- the devaluations-was not imipedi-^ioir ahd industrial developments'
Whether t'^ere has been gain or more than a naked Congressional merit cost the transaction has re- ate; that as a consequence price :as 4hey may relate to the growth
loss or neither.
In a word,, gain declaration or fiat.
sulted in loss not gain. Abundant changes were gradual and ' the of 'paper and .board consumption over
cost
if -any, must be de•;
examples of this may be found actual.market value of. the paper
Th-rrt.
,
,
termined
by
application
ol
a
Extent of Legal Devaluation
in the field of housing. Equally dollar difficult. of determination;i EicPdrt'&-nmittee'« |tt MiS1
common yardstick. Otherwise.theSpecifically the change in toe clear, examples may be found in.There is merit in this, contention.
0pen,Meeting held.in fJe«^Ynrtr:
conclusion
reached
is
without Standard Unit of Value effected the field of ''Depreciation Reserves But all merit disappeared When citv on -Feb- io aV nni?nf S:
truth and meaningless.
To pre- by the Acts consisted of a reduc- where like percentage Reserves full market recognition of the APPA's 80th 'annual convention J'
sume that value has been created
tion from-the long established accumulated in the. new dollar change became apparent.
That
T /2
->a-.
.
.
*• i
and gain realized because of leg- 25 8/10
grains of fine gold to are notoriously inadequate- to. day has long since passed and^;V;Jf '
islatiye change in the
unit of. 155/21 grains. An equivalent re-.make good the depreciation of there-remains no shred of Jdstifi-uees ^program of ,
measurement
is to defy
reason duction was also enacted in the property purchased with the:pre- cation for refusing its recognition. T a^rinpf r-i^^^ ^w i01!'
gnd give supremacy to form over declared value, of the Monetary devaluation
dollar.
And
who:
i have spoken only of the exUnit.
fact.
It is to
depart from the Unit.
As an aid to ^be. reader.s rAaii7»s mnr#. iroAniv th#» vuffar. press.reduction, in the, tt_u for paperboard reached 01 paper ana
wvixu coij^umpuon a ne^W^h
As^an aid to the reader's realizes more keenly the. differ-,•
Unit
tealm of reality and enter that understanding,- the
text of the ence in these Monetary Units than the Measurement of' value'
of make believe.
.
statute,, naming
defining
and recipients of a fixed:-.dollar ,re-; the attendant devaluation of ,Xht
But it is not alone in presum-- es^blishing the Standard Unit of turn whether it .result from eonMonetary Unit. I have said poth- world'consiimhtihn nf 1017 an?
ing that capital, gains have been ^^e prior to .the. ch^ge apd of tract obligations or rate ^making. |ng pf1 that indirect, but no' less^^ about 5 000 OOO^tonVahow
h
realized under such circumstances, that reducing it,.follow:
in the case of'public service cor- effective erosion in purchasing. *,
-' ■ - :
V J
that
citizens
are
being, denied
Section 314 Standard Unit of porations.
In the case - of the power of the paper dollar. This
xci m^ North-America,; the;
their Constitutional rights. In the Value. * The dollar consisting of latter, many hundreds of millions.^ jg quite as certainly the. act oil i^r-S©st.consummg. area, v^orldcon-:
case of all public service corpo- twenty-five and eight-tenths of dollars of Capital Investment: government as the express deval10,"l ° ^taPe5n^J1 board has.
rations, many State and Federal; grains of gold, nine-tenths fine were made in dollars each of the, uations. It is ceaselessly building
i°^ "0% ^ijjee .1937.
regulatory bodies have refused to shall be the Standard , Unit of fixed and convertible value of Up putative "capital gains" -which; Pj^cj^iPi?- infr®ase» Mh Dager-:recognize the express and.Com-; Value and all forms of money 25 8/10 grams of fihe gold. Upon have nonexistence in fact.: It is, S,f5;]taken place .smce.
mercially recognized changes in issued or coined by the United this investment they .were con- aJso cutting-away the real return
yy.ar*i . ,,
.
the monetary unit.
This refusal^ States-shall be maintained at a stitulionally entitled^^ .to a fair of all public service companies.^ .
20 Expanding Markets :
takes form under what has come parity of value with the standard, rcturo, ordinarily of not less than ifl, the .course -of time
Capital..-^ThA^^iWi
*.
to be known as the OrigiriaL Cost and it shall be the duty of the, 6% per annum.
V
•
gains'.' from this indirect source +rj^s rontain«s charts'
theory of«rate making, and- the Secretary .of - the .Treasury
to
This .annual return w^s payable will reach greater. heights than chGwinfy pYnahdinv mnrVptc' fnr
form it takes is, devoid of truth, maintain sucfi parity.
and received in, ,six, dollars iof those now, apparent from; the- exV%nitddS;tat,5-WanJ^'anA Knnfd/rn
Dy treating the dollar in Which " See
tf'. S: Code / Annotated, 25 8/^6 grains Of fine, gold upon press Act of Government.
; thefolio wing■[ /
the' return is" now paid as of Money and Finahce, Title 31 Sec- eachhoue :hundred dollars ^of in^
v : /
^ .Arffentina «*• Australia^
identical vdlue with \the' dbllar. tion 314 Page 176.
?.
»i,' •
vestmoht. ^Is /this constitutional /■</'/ : False Accounting
iBrazil- Cuba -the DominicanJR^
invested, the return; to the;owner
By Act ;fif Congress ^approved right accorded them;;by rpayment r In;this manner poinfed but
vpublic^E!.£idvadorJTtanbe''<JGu*>i
upon great amounts of property,
May 12,-1933, Section 314, was pf rix dollars of lj5m::grains^ ^ i^i^tion^ po^ew ^^Mlyvteirf^ India. Indonesia and Mex^
has been reduced hy as much as amehded; to read as follows:
gold? The fVia
market places of the *TT<vlora1it^hy the Con0tutimr th^
denied
Panama,nriA-half
anH
l^fVnst.lLlltlOrial
IKoro
flAvprnmpnf
Ipirvillf'of the:lawfully
measurement
for" the
...
*»
,
.
_
.
,.n
T
.
..
,
c
,
*
„
.
,
^
.
.
.
,
.
.
.
-
,
.
.
,
niQ
rtal .asset
urnrm
onm
Qnewor
ift
cinnn
-r-i^
,r
1
-1
t
a
realized'ln
dollars
valued
the
of
dollars
pre-devalued
its
Section 821: gave
d
^
t
.cost is mot
"stration
-
^fficuix .This,demon,
w>ll also make clear the.
;„£ the^
Valuj., ^5. power
accounting
false,
owners
.
'Standard of Value and
'
Monetary Unit
The
of
40%.
Acts had
first to do
the long established Stand-
books
Value, which was
reduced by
40% and second with the Mone-
"Unit
which was declared
equivalent amount,
devalued by an
„
,
A
,
is
necessities
of
and
commerce
the
dollar
value
deter¬
■
M
,
j.
„
m
„
panies
six
of
that
the
an
annual
devalued
return
of
dollars
is
expendi-, France/
wholly
tures
Sreater significance was its conduct toward those whose gold it
Hoiland,-
i,*w
West
the basis of reality.
..
.(Special to The Financial Chronicle)
"
(Speoial to The Financial Chronicle)
DENVER, Colo/ — Willis
Germany.
With Dietenhof erCo.
Two With Plankinton
F.
SOUTHERN
PINES,
Ronald W. Murray Wavne E. Hess
have joined the staff of Walter Dietenhofer and
R. Plankinton, 1637; South Broad- Southwest Broad
Boyer
and
way.
Wurifmc
Inr
y
N.
C.
with
Heartfield, .670
Street.
is
Joins Merrill
ii/Jtb
Luxem^
Italyv
unwarranted upon rnct r-ormanv
bourg, the United Kingdom and
....
.
an
administration of justice, it is the
a
mined by the old unit of; 25 8/10
intangible concept selling price without mathematicapable of measurement only in cal adjustment is obviously imterms of a tangible thing of value,
possible. It is no less obvious in
For this reason, and to serve the
respect to public
service
com,
Value
.
.
at
S«
;qn-itsr,n
dollar1grains of fine gold, /it forthwith
^
"
dollar revalued this gold in terms of the
l°LPr0°J5erty o™1"* new unit of 19 5/21 grains. As a
Jf
?
ar 1
an UI? r/ result, it announced a dollar gain
J
foregoing is of upon precisely the same gold of
P
+Vlf lmP°riance. Com pari- jn excess 0f two billion dollars.
f?" 1,1?! represented by xhis of itself ^ significant. Of
the two items, original cost and
•
since control,
compelled^
/ - The'principal long-terin- deyelr
-to. its pvm-Pr°Pefty
rmnnU of gold standing
«t^^t7
amount nr
Equivalent Dollar Yardstick
•
are?
the
m
ard Unit for the Measurement of
tary
was
as
aniH
Congressional Legislation
1933, known as the
Devaluation
-
stated
dollar.'
the ;year
with
.
as
devaluation,
before,
/
n
has been commonly known
"devaluation of theamount the
irrelevant
now
Lynch
(Special to The Financial Chronicle)
CINCINNATI, Ohio—Joseph T.
(Special to the financial chronicle;
DENVER, Colo. — Wayne E. Resor, Jr.-has joined the staff of
Resor,Pr. has joinecl tne staif of
va
n Pr°gramowners Thompson has become affiliated Merrill Lypch, Pierce, Fenner &
c°ine(* Sold were forced with Securities, Inc., Farmers' Beane, Dixie Terminal Building. •
to accept doUar for. dollar in Union Building.
* r*
r
a i ic
^vnronriated
f f-
as
nart
of
tbp
dp-
»
rt
practice of governments to estab- not the equivalent of six of the
lish Standard Units for its measpre-devaluation dollars. A simple .paper. But the gold secured in
A li;~l
A AA«
urement. -These-units ordumrily example willserve as illustration;
thiV manner -once in government
AUied 5ecs. Adds
.
;
to the knanoal chroniox)
;
consist.of a givenamountof one Let an item be taken, which was
^
' 9^ce P^overpmeni
-.ATLANTA; Ga. — Gloria Neal
CLEVELAND, Ohio. — Charles
vof the. precious-metals— in our purchased
prior to the devalua- hands. went onto its - books at the ;has, been, added to the -staff of P.-Lucas,has been added to the
own-case, of-gold; It is also the tion and sold at a recent date. Let '.rate of one dollar for each 15 5/21 Allied Securities Corporation* 87 staff of McGbee & Company, Inc.,
MC^nee V.O. /Auas
.
practice to tie the Monetary Unit its cost be taken.as;Gne
Thousand .grains.
•
-
-
-
!
•'>
'
the -devaluations / in ) ascertaining *-
J*.
:
-*
"r« «u« Pulp Export vo"1®'!
tiupbijiuri Commit-;
government agencies f indthem- selves- in their refusal to recognize--01"
^
*7.
°
.
v.„
...
/
dollarOvBILTOl,
present "day sale of a capi- to be identical vwith that of the it ,1s obvious that even if r conphased
But the . vertible .One Thousand Dollars.of
.purchased prior to' the 'Unit ' of /Measurement.
iu.
»
_
r__
T_,_
_.T
TT«!+
fn.
iKa
AlAactiramAnf
J*.
-_ii
devaluation a taxable gain is au- .Unit,,. for .the Measurementof .15 5/21 grains of fine gold, are/not.
tomatically realized in the amount /Value, and the Monetary Unit are .the? equivalent in walue^bt'-pne
that the devalued dollars received not .identical; thipgs.^In fact anjlThousand: Dollars each' containing
U
.1
^.
*
Is -ittrue tosay thatythe
value of government owned,prop-?.-
upon
tal- asset
Double Standards
/:
of. *25 8-10
cohsisted
V/vertible mtP •.tjtor.gojd., On <Xhp erty. was
v
.
.
.
cost
th^ devaluation Acts but-false
receiyed
of ? privately
v iiyveiyeu in paper dollars eachrbf ,t0 • say -the-: same
yapw, uuiwie
>to
tneof:
Meas- a fiat yalue of 1§8/10 grains ;pf, owned property? -.This question
It still con- directly, to the Lnit for the
taxes. These urement of Vatae^the
upon .this; premise.
tinues to collect such
to"1***
,,
•:
♦
.($1,QOlO;0Q),. Each
;
this
Thursday, February 28,1957 "
....
Walton Street,"NoftHwest. /
;2587 East 95th.Street.
.
.
.
1
M*
Volume
185
5616
Number
Continued
from
page
.
.
(1009;).
The Commercial and Financial Chronicle
.
intelligent grasp
6
Correlate
Achieving National Solvency
'
To
Taxes
Spending
With
-
tax
receipts and expenditures for
year—because the an-
nual
.
budget
surplus
Tight
flection
halt, this trend toward increasing tions and expenditures, as many
^expenditures,, toward financial ir^ people believe.
1 :f ;
tary Humphrey has a'solemn ob^''resP°ns\bb^y, ; and;
eventually, r By establishing this direct Corligation and responsibility to the* toward insolvency, but I do wish relation between'annual approAmerican people and to Congress\tp mention_ what I consider to -be Driations and annual ex nenH Mures
to
specify, where-he feels the
the most significant de- as the Hoover Commission wisely
Budget
can
be
cut. * It -is r- not
t o w a r d.^ financial recommended, »-we vest not only
V* \ •/,.
'
r
A
by
Guaranty
serious
..
.
obligation to specify^ .4 .
...
,■
lg
instead of placing SIOIIS
ing
leCOrnineDCiailOll
to*
.
,
^ongie^s inai appropnauons
Congress in the position of guess-
•
tuG
-
to what those places
as
of
but it could not control the economic consequences of such action.
_
Free
"It
-
recog-
the basis dl* actual
of
existing that ycstl*! "
year:
The more money they
have, the higher they are able to
dustry.
The higher bids, however/
appreciably increase the
output of an industrial system
that is already operating virtually
at capacity. Hence," the Federal
bid.
.
of the objections of the House of
particular time, and I could point Representatives that we could not
cannot
Reserve," while
thereby
services available. It-could only
enable would-be buyers to raise
.their price offers still higher in
the effort to outbid each other,
In short, it could only produce
inflation.
"Tight
it was continuously manipulated
think of no more important legis8et a bill through the Congress lation to bring about the "wise
implementing the other Hoover use of.' Federal money" than the
ever, that in the next 18 months
Commission / recommendations, implementation -of the Hoover
before spending under this budget
with the aforementioned appro- Commission's recommendation tois ended we should be able oma priations provision in it.
ward that goal.
:
in favor of easy money.- During
the 1930s the manipulation was
practiced in a largely futile effort
to promote business recovery,
During World War II and for
could
we
do
at
that
without hesitation that I
say
specific items which should
be eliminated. I do believe, how-
to
no
,
case-by-case basis toAs I stated on the Senate floor
savings that can be made when the Conference Report was
day-to-day,
find
in
miss
hurting our security or filed on July 25, 1956, deletion of
necessary services. To do this ef- ..the
hoover Commission's hignly
recommended revision of
our
President
ap-
propriations procedures struck at
the very heart of'the objective
the
Congress, and all the departthe government in searching out
not only
would be reI not to pay tribute to
were
I
a
.
we
seek:
Namely,
Hoover
(1)
efficient
manner.
few
A
iri his State of
-the
Union
message
asked that
everyone in the Executive Branch
<continue to search out ways to
-Save
money
and urged the co•t operation of the Congress as well,
President
-"The
again
after
"days
that,:,
.the
Congress
thc
firm
can
.
the duty of the Congress to do so. that there is no more important
."If we can achieve more effec-. legislation" pending
before
the
r
.
control
tive
of
spending we- Congress than that which would
will have brought about a desir- provide for strengthening the fiable, .restrainton
inflationary nancial foundation ? upon which
>
•.
•-
which
pressures
.
lower taxes,
.to
our;
can open the way
greater incentive,
government
this
fmou^of
money
and the making of more and better
Government
jobs for the long-run well being
when
of
:
Congress
nation..
our
turned
recommendation, into law I was
jroined this year in the introduc-*
lion of this measure by Senator
belief that if -Frederick G. Payne of Maine and
find ways to cut Senator John F. Kennedy of Mas.spending without impairing sccu- sachusetts on Senate bill 316.
; rity and services that it would be
;• i am confident you will agree
the
publicly
t
The
rests
th^dSS
spends is controlled
appropriated by the
is
it
that
his
for
leader-
not
—
when
it
Sincerely,/s/G. M. Humphrey"-pended
I
with interest that Seere-'
note
•
is
ex-
President
not
onlv
"could
"
which should be eliminated." Ap-
the
parently
tributed
lot
of
him
to
places in
cut"
be
can
press
was
statement
that
"there
this
in
budget
error
sums.
Tne
at-
are
a
that:
and
Agen-
to'
the
States
surplus. In other
the appropriation
did the
ifth
congress gave him,
t'hP Conerp^ askpd
f,nd
then
hadSsomething
roritv
a
indppd
Washington
seems
,
in
where
be'to
to
.
T
.
the
of
Treasury
a
the
he
bill
I
have
riod
of
place the ..entire governmental financial structure on an
manipulation,
I
say
those
.
:
.
-
rises
from
ness
way
-
mates
of'
government
expendi-
here, with all respect to' tures actually to be made or to
high position in the na- be accrued during the fiscal year.-
.financial
as
their
personal
taking more money
industry as busiactively expands is not the
to national solvency—as good
it
or
by
corporate
might
look
r
,
cal
year
and
their
of Ted B. Reed.
left
the
emnhasis
Sale of Motor-Vessel
"spend" not "save."
'
.
.
T
President Hoovers exclusive company* ;^s Chau^an of.the. Sub:
committee on Reorganization of
the Senate Committee on Govein-
"LEME"
The "ITALIA" Societa per
mer,t Operations in the 83rd Con-
^^^'"using iSl
a surplus, using less
zione.
lreasury,
money than the Congress approPnatecJ to £et tbe job done.
Drfach" t0°'
practlce w at 1
—
terms
invitation
able
Adelbert
„nnon(w1
„,Hh
gross
tonnage
to
conditions
and
file purchase
specified in
tender dated
to
applicants at
the Company's Head
Office, Piazza De Ferrari 1, Genoa.
L.. ■ Kn:igh^t is no\v .conn.ected with
Saunders, Stiver & Co Terminal
Offers should be filed with
the Company
of
-
(Special to The Financial Chronicle)
,
"LEME,"
February 6th, 1957 the text of which is avail¬
(Special to The Financiai Chronicle?
Ohio
the
with
Saunders, Stiver Adds
Jo
m/v
8,038.97, net tonnage 4,902.87, in accordance
the
CLEVELAND,
the
tender,
Azioni di Naviga-
offering for sale, by international
is
within 12 o'clock
April 30th, 1957.
CLEVELAND, Ohio—Charles E.
—
Muckley is now. associated with
Suburban Securities Co.,'732 East
200th Street.
• - -
Applications for copies for the invitation
should be addressed
"ITALIA" S.p.A. di
justification
as
follows:
Navigazione—Piszza De Ferrari, 1 Genoa
With Columbine Sees.
.
TELPH0NE:
Nos. 27,041-28,391-28.771
CABLE:
thereby completely clouding any eurities, Corp., 1780 So. Broadway.
't
' '
over!
for new appropriations on the
(Special to The Financial Chronicle)
basis of the current fiscal year
DENVER, Colo:—Earl R. Hobbs,
only—not on the confused, com-,
plicated "obligation" system pres- Norville C. Miller, Merwyn R
ently in effect which frequently Sandsted and Melvin Snyder have
covers three or four fiscal years," joined the staff of Columbine Se.
;
'"JM
*
hurpanrratir
income penditures for the preceding fis-
in the newspaper" headlines." Balancing ' the
budget by reducing Governmental
expenditures is. : ; .
•
as
•
Expenditures
councils,
that
The Executive Agencies would
balancing the budget by taking present.<• their estimates for the
more
money
from the people in- forthcoming fiscal year, their extion's
taxes
•
in
Reducing
however,
him'to
1 a.^ gla^ to sa,y thaf I".can J0in
„
introduced
would
have opened a
The long pe- Building under the management
market would do.
annual accrued expenditures
reply that he feels the President's basis. In other words, the Con-.Mldwest stock Exchange.,
Budget is fat free.
gress would appropriate for each fiscal year upon the budget estiWith Suburban Sees.
Prefers
Open Branch in Texas
VICTORIA, Texas—Underwood,
,poney market *° Neuhaus ,& Co.
misquoted. I gather from his
was
Underwood,, Neuhaus
fluctuate much as a^truly free branch office in the McFaddin
fiscal
by
eliect, demanding inflation.
great contribution
in
up" these two "Crusades
a
WOrds, he took
management within the agencies
can produce economies in operation which should have sizable
replies that he
point to no specific items
Humphrey
tary
Executive
although v improved
vies,
*
Ihose who demand easier
as
'
•
hpnnmpc tno
p,
its main purpose was to enable
the Federal Treasury to borrow keen.
tomm^dSPh|tihMdidb0^ re" l° allow the
United
The President has also expressed
,
thp mmnptitinn
wv,pn
and
days
Congress, I introduced legislation
to write the Hoover Commission's
.
between demand and supply
ance
half years thereafter,
,
January 7, last, in the
of the present- 85th
on
first
.
made
former
management within
,
: :
is a
-
■
»phe
improving
the
Branch;' and; " (2)
re-
financial
therefore,
natural reflection of keen com*petition for a limited supply of
goods and services and an essential means of preserving the bal-
suPP°sed wartime commitment to
Treasury was making moneheading
tary P°licy an instrument of inthings which are no longer needed Executive
for Better Government " but he ^ati°n»
Federal Reserve
but
m^ke sure that the things we storing control of the public purse'<dl<1i something'-else;.'He' practiced reached an: "accord" with . the
hav^to do are.done in the,most to the Congress.
- r:..
what „e prea?hed.
■
Treasury, whereby it was enabled
ments and agencies of
;
,
money,
cheaply as possible.
money at such a time are really
ship of the two Reorganization
"In 1951, after it had become protesting against the necessary
Commissions- w h i c h
bear
his apparent that the continuing fulnf romnetitinn
and
are
in
name.
'• »
: '
fillment of the Federal Reserve's
p
,
„
..
* „ '
1
without
fectively will require the most
earnest cooperation of the public,
concluding,
five and
it "could "make
available, could not
make more goods and
more money
can
that
market; is,
year on
-
best
appreciate
_
must
:
>
to
Virtues
market'
' o.°
^ \ * vast carry-over balances to which during the last two centuries."
e■
F, - •.v;; . 'v,; .<■ I. have previously referred now
The article notes, "most of those
The Senate last June 20 acted a^aiiafc>le for. "expenditure" some who have joined in the outcry
is
caused
by ythe fact
that. ort 4ay°rabiy upon the Hoover .Com^. tj^e ^ the'distant future at the against tight money during the
Feb.? 1; two days after giving the-,™18Slon s
recommendation, when discretion .of the Executive Agen- past year or more would perhaps
advance release; I received a reply *Is. approved
Senate bill 3897,' cies; with? little op no control over be surprised to discover that what
from Secretary Humphrey- to-my.which incorporated all the .Conir their "spending by' the Congress
they have actually been attacking
letter. I now read that letter-to
Jf\ss/.on s recommendations on which is responsible in the final is not governmental or Federal
.you:
c'v;
V ■**'
'*'*
budgeting and accounting. ;
an£*iysis to the people lor the use Reserve policy but the natural
"My dear Senator Smith: Thanks C
However, as you may recall, the of their money. ", ''" ' 4
* 'r .- J "competition cf' the- free market,
for your letter regarding my cOm,- .a^~^mPor^an^ section relating to; v .
- ■*■>'?•
• •
'
'
\
This confusion between form and
ments on the budget As I have
preparing appropriation estimates Wants Hoover Recommendation substance is not surprising in
said
publicly several
times, as on
an expenditures basis- was
' * ,
Implemented
•view of the financial history of
well as to the full House Approstricken " in conference" between
\I conclude, therefore, with thisrecent times. For about 20 years
priations Committee, I felt that the two Houses of<the Congress thought upon "the subject "The prior to 1951, the money market
the budget, as presented was the when it became obvious because
Wise Use of Federal Money'—1 was a manipulated market, and
digress somewhat-from, the?
original, text in the advance
lease that P made. The digression
?
_L.
comments
agreed that
generally
_
j
Enter-^
Free
"Survey"
__
Market
impossible
is
nbPPCCQrihr go knn/1 -in hand and movlrot for tfnnHc QnH , CPr\;t/»PC
1 market
necessarily im hand in
goods and serviced
that the combination has made Men are c o n t i n u a 1 l y bidding
possible the phenomenal economic against one another for the lim,Moreover, !this would? evintu/' possioie tne prrenomenai economic against one another ror xne nmj.
^ly mean the elimination ol the Progress of the Western World ited supply of the products of m.
budget
De conditions
■
•
Reserve could make money easier,'
"Comprti-
titled
Price
The Federal
this is true.
sense,
ernm'ent- operations .during "the free enterprise and competition to k large extent, a mirror of the"
.
.
places
people's minds that the money
market is at the mercy of the
Federal Reserve, be having as the
central banking authorities wantJ
it to behave.
In a superficial
of
Company
Trust
New York.' In an article
is-
those
has left the impression- in many
re-
competition becomes too keen, ac-;
cording to the March issue of
"The Guaranty Survey," business
and economic review published
he;
.
natural
a
keen
of
e
"the
is
money
and thus produce price inflation.
or
believe: that Secret
sincerely
<T
according to "Guaranty Suryey," could only raise
bids for goods and services
.
competition for
budget a limited supply of goods and
deficit is measured by the differ- services, and an essential means
ence
between the two.— and not of preserving the balance between
the difference between appropriademand ; and supply • when the
each" fiscal
*
high level output, freeing by Federal Reserve of addi¬
tional money,
of
command
government finances there must5,
be ja rdirect.. correlation between;
Republican and former Chairman
Time does not permit, nor am I
of the Reorganization Subcorrmit- .a seer who can prophesy all the
tee and as a sponsor of legislation :steps
that
must
be
taken
by
I shall, mention later in my reresponsible authorities to bring to
"marks.
Guaranty Trust Views "Tight Money''
•
and
firm,
obtain
current
of .the
finances.'
state of oUr
2t
1 .1
,
!L't..
.
-i
-r
7
:
J
:
ITALMAR-Genoa
,
22
The Commercial and Financial Chronicle
(1010)
Worthington, Gurian
r
•
Our
Head Berk Depts,
Reporter
NAM
'
t
fiscal
By JOHN T. CHIPPENDALE, JR.
backing and filling because there
is some profit taking along witn a rather rapid movement of
quotations up and down. The thinness of the market in the intermeoiate and long-term sectors make it readily movable in both
directions.
After the sharp upturn which took place
fr^m the
the
of
these
gains would
that a sizable part of
Nonetheless, it is reported that
unimportant amounts of these securities are being taken out
not
of
the market by
The
taken
and
are
the
F.
been
Worthington
higher rates that
Manager
appointed
Trading
Department' for
Co.,
165 Broadway,
City.
Jeanne
Rice
the
of
Berk
&
New York
Gurian
is
Manager of the Canadian Trading
Department.
Mr. Worthington was formerly
associated with C. Herbert Onder-
available to buyers
are
disliking.
It
has
of these
still
in
"
market continues in much the
the
since
of
start
the
vein that it
same
which
year,
that
means
in
over
it is
restricted, although the opinions which are being
indicate that the belief is growing that the worst is "|
the
bond
in
borne
phases of
market
the
whether
it
future.
foreseeable
that quotations in the
mind
it,
for
It
the
bond market, that is all
be corporates,
is lifted
pressure
put
or
However, it is believed in
that
is
boom
ti.e
fading, and if this is to be true, then the
very
Tnis would not,
necessarily forecast an immediate change in policy, as' far as
monetary policies are concerned, because it is evident that the
powers L.at be are not likely to be too fast in taking the brakes
HILLS, Calif.—Irv¬
ing Hofstein, long one of the top
the
Beverly Hills
banking firm of Can¬
Fitzgerald & Co., Inc., 232
The
North
Canon
named
Vice-President
of
Research
announced
was
has
been
Charge
Drive,
and
in
Development, it
by President B.
the
the
appointment
statement
vestment
that
for
funds
the
importance
was
search
of
Cantor's
for
in¬
opportunities will be
one
slowing
to
down
somewhat.
have slowed down
Home
year.
the
capital
not
are
it
strong
is
that
proceeding
Thus
it
evident
is
at
that
slower
a
soft
to
bi
pace.
are
de¬
economy.
demand
for
funds
will
slacken, and in the opinion of
this will be true in the not too
development of itself would bring about
market specialists,
money
distant
ten years.
is action by the monetary authorities to offset it.
a
future.
Such
considerable
degree of
However,
to
Gallagher-Roach
(Special to The Financial Chronicle)
be
there
strictive
,
COLUMBUS, Ohio—Edward A.
Doering is with Gallagher-Roach
and
Company, Lincoln-LeVeque
need
tax
tutions
ties
opinion
Creek
Road.
Robert
•
•
than
in
when the boom and inflationary pressures were
Borrowing for Tax Purposes Indicated
a
were
very
little
the
1957
it
15,
than
the
-
is
loans
now
the
was
.
proportion
income
this should
tax
the
from
'
-
to
case
of
to
mean
be
take
a
paid.
authorities
over
due
some
to
Be
BANK, N. J.
Bank
Fund,
a
has
$65
vestment
—
been
here
Eastman
Jack
President,
in¬
mutual
franchise
Skakandy,
granted
York
Associates,
City, Eastern
the
by
Inc. of
United
Denver,
Mr.
BOSTON 9
ST 2-9190
HA 6-6463
reductions
billion
in
civilian
in
foreign
"In
the
loans.
With
should
market
its
and
including New Brunswick.
fund
Bank
executive
some
have
no
wholesaling
send
staff
members
to
several
role,
of
its
New1
Jersey communities to familiarize
local
investment
directors
recognize
planned
grams offered
trial
Fund.
which
dealers
with
investment
the
pro¬
by Financial Indus¬
Among
the
firm
the
will
cities
conduct
activities
He
their
people
distinct
as
from
cial
interests
are
in
its
New
its
brokerage
retail
area.
operations
and
in
mutual
the
Red
the
militant,
Other
Long
Schirmer, Atherton
Parker
Simpson is with Schirmer, Ather¬
ton
&
Co.,
members
of
50
the
showing excellent repayment
to
ord
take
Mortgage
spe¬
New
Street,
York
Boston Stock Exchanges.
and
borrowers
established
articu¬
last
year
excellent record of
an
maintaining their payments, total
loan
delinquency for the year
ended Dec. 31 amounting to
only
2.27%
that the
based
upon
studv
a
of 2,-
"firm
the
1954.
omies
in federal
spending pro¬
posed by the second Hoover Com-
good
a
NAM
in
decrease
a
board
further
the
concentration
due
the
and
"dif¬
a
of
payment,
G.
more
I.
over¬
amounting to only 0.22 of 1%,
two
and
in
power
record
>
.
maintain
to
loans three months or
urged
"unwholesome
of
government'
unaai
•/.
Veterans continued
•
months
overdue
month
one
0.41
of
1%
2.14%.
fusion ot power, resources and ie--
sponsibilities
the
.among
*
-government.
NAM said
that
The
Congress
should take legislative and organ¬
izational action to effect greater
control
of
federal
spending. It
suggested the following steps: (1)
restrict appropriations to demon¬
ex¬
isting- appropriations
the
2.27%
several
of
For
Average
Federal
Housing Adminis¬
tration borrowers, the record
is
generally simLar. Three months'
or
delinquencies
more
to
only
of
0.11
0.26 of
1%
Holders
1%,
and
amounted
two
conventional
of
months
month
one
1.62%.
t y p e
-
mortgages—those without govern¬
ment
insurance
or
guaranty —
backlogs to
0.14
of
1%
for
three
extent; (2) restrict- showed
commitments whereby1 months delinquencies, 0.29 of 1%
expenditures are deter- - for two months and 1.23% for one
maximum
open-end
federal
mined
by non-federal
agencies;
(3) review, modify, and repeal, as
necessary, substantive
legislation
involving
long-term
fiscal
com¬
month.
of
two
mitments.
Thus,
Spending
the
three types
pattern
was
The overall
months overdue.
2.27%
of
average
Reducing Domestic
for all
mortgages,
generally the same—a sharp drop
between delinquent loans one and
on
Lee.
31
is
for all
delinquent loans regardless
In the field of domestic spend-* of the overoue period/
The sur¬
ing, the NAM said that $4.1 bil¬ vey, made quarterly by the ac¬
lion could be cut from the budget
counting and servicing division of
the Association, covers o^e to four
by
judicious pruning,
such
as
holding certain programs down family residential loans and re¬
1956
to
1957
or
avoiding
completely
the
spending
levels,
and
programs,
new
eliminating
by
certain
which have been set
1958
proposals. For
of
levels
1957
projects;
be
be
saved
in-aid,
and
that
by avoiding
$1.4
billion
as a
In
the
new
New
passed
to
Federal
of
Anderson, member of
Stock
York
Feb.
away
17
Exchange,
the
at
age
59.
Edward M. Baker
Edward
M.
Cleveland
Baker,
Manager for Bache & Co., passed
away
the
Feb. 17
at the age of 81.
said
of
observe
prudent
fiscal
its
organization
manage
delegated
should
and
association urged that the
it.
KANSAS
the
of
staff
Mo.—William
Merrill
Lynch,
to
re¬
Pierce, Fenner & Beane, 1003 Wal¬
nut Street.
The
Special Situation Co.
federal
Joseph R. Seidman is engaging
acceptance
by the states of their full
CITY,
H. Shackelford III has been added
re¬
competently
to
(Special to The Financial Chronicle)
that
powers,
policies, and by efficient
promote
Merrill Lynch Adds
federal-state
NAM
exercise
government
.
Centralization
restrain
services
in¬
the
certain
20% cut in grantsfirst step in returning
regard
of
of
could
a
Federal
holdings
section
-
or
functions to the states.
Reducing
every
Elliott M.
that $411 million could
by
in
Elliott M. Anderson
*
exam¬
1956
eliminating
by
saved
to
programs
mortgage
vestors
country.
up
ple, the NAM said that $1.7 billion
could be trimmed by holding a
number
flects
in
Congress
rec¬
maintained in 1956.
was
leadership 418,475 loans by the Mortgage
implementation of budget' Bankers Association of America.
reductions."
Of this number, 55,119 loans were
In addition to its specific bud¬
delinquent at year-end as against
get recommendations, the NAM 45,507, or 2.18 %, a year earlier
urged the speed-up of the econ¬ and 42,135, or 2.45%, on Dec. 3f,
in
the
(Special to The Financial Chronicle)
Mortgage Bankers release data
Suggestions
board urged
Government
C.
of
govern¬
Termed Excellent
:
the
Park,
Branch, Ocean City and Cape May.
—
affairs
and local
in individual programs.
$1.9
minority groups."
of
Camden,
Mass.
$2.2
responsibility
the
BOSTON,
said,
closely and
the
to
state
own
NAM
more
Mortgage Repayments
.
said,
"both
the
Congress should
relationship,
With
$4.1
spending,
aid, and
Brunswick, Trenton, Atlantic City,
Asbury
the
-
attend
the wishes and needs of tne wnole
programs;
various
all of New Jersey South of
added that his
company will con¬
tinue
will
of
in military spending.
dealing with the budget,"
programs
new
re¬
volun¬
di¬
President and the
lated
Skakandy said the franchise
covers
CHICAGO 4
be
fund.
INCORPORATED
St.
will
"overborrowing,"
no
tax
wholesaling
was
States distributors of
Colo.
5
March
announced
Investing
New
45 Afilk
or
for
money
appointed
yesterday.
The
FIF
million
trust,
Eastern's
231 So. La Salle St.
little
In
Central and Southern New Jersey
wholesaler of Financial Industrial
WHitehall 3-1200
payments
the March 15 hurdle.
Investment Co. of 157 Broad St. in
Red
BROAD ST., NEW YORK
of
groups,"
"should
and
included
billion
in
RED
& Co.
tax
will be lower, which means
demand
FIF Wholesaler
20
middle
on
Eastern
Atjbeet G. Lanston
income
they will be considerably
ago.
It is being pointed out
cases
With
the
of
care
that
year
taxes
decreased
a
trouble in getting
Eastern Inv.
Securities
more
a
expected
smaller, and that profits in
help
was
fairly substantial part of these loans
expansion, inventory and other purposes than for income
for
smaller
less
matter of considered
a
overborrowing in the so-called "income tax loans"
It is believed that
payments.
that
It is
center insti¬
money
of
strated real needs and rescind
loans to meet income
among some money market followers that there
for
As
Last year,
large, with the big
supplying most of these funds.
March
on
U. S. Government
is changing, and there is
picture, it is not likely that
keep the money market as re¬
ides of March is approaching, with it will come
make income tax
payments, and as is generally the
to
1956.
were
tax
Specialists in
to
tary
citizens and
Specific recommendations of the
NAM
pattern
economic
desire
"Individual
nation.
levels
the
payments
ard & Co.
Little
the
to the Federal Government.
over
H. Brown, Jr. is a principal of
the.
firm.
-
business
in
same
market unless there
there will be borrowings to obtain funds that will be turned
case,
is engaging in a securi¬
business from offices at 1101
was
Smaller
the
West
it
as
Because
NORFOLK, Va.—Brown, Bech-f
the
be
the money
in
ease
strong.
so
Tower.
Brown, Bechard Formed
if the
let-down
a
will
a
dealing with the
gional problems.
ments, to the end that dependence
meeting at Boca Raton, on the central government for
said that proposed Federal, doing the things that should be
spending of $73.5 billion (includ¬ done at home may be terminated."
ing
the
Federal
The NAM will release shortly
highway s pro¬
gram) carries both an "inflation a detailed study of the 1958 bud¬
potential and jeopardy to contin¬ get with specific recommendations
ued
economic
for economies in each department
growth"
of
the
The
eventually
mean
of
means
rectors,
President
so
University, has been with
Cantor, Fitzgerald for the past
York
With
billion budget.
association's board
Three
showing,;
spots
a
constructively
The
The NAM
appears
likewise
are
taking of the froth off the boom could
the
some
also
and commodities
of
their
:
they have been in the past.
as
The
seems
also
implementation of
$71.8
very
Nonetheless, ,.tne signs of retrogression
strong as to be alarming, but it does seem as
indicates that the inflationary pressures are not as
yet
though
accumulation
still
considerably since the fourth quarter of last
construction
veloping in tue
is
market
of increase
rale
Inventory
Prices of certain products
of the
major functions of Cantor,
Fitzgerald & Co.
Mr. Hofstein, a graduate of New
in
strong in spite of evidence that this
declining tendencies.
Gerald Cantor.
Illustrating
demand
continued
urges
in the Eisenhower administration's
Capital Demand Strong. Despite Slower Economic Pace
of
investment
also
Association
late
off.
BEVERLY
tor,
National
,
Cantor, Fitzgerald
executives
Board
Manufacturers called recently for
stringent pruning of proposed fed¬
eral
spending
for
fiscal
1958,
strongly urging a $8.2 billion cut
quarters of the mbney market
restrictive pressure will be off the money market.
1958.
spending.
The
billion
the money market.
on
some
be
can
Hoover Commission recommended
economies; decentralization
of central government
powers; and Presidential and Congressional leadership to effectuate reductions in Federal
•
should
tax-exempts or Govern¬
ments, will be subject to movements in both directions, especially
as
Urges $8.2 Billion Budget Slash
Fla.,
tight and
expressed
be
seems as
Credit Stringency on "Fading Boom"
money
been
donk & Co. lor many years.
Hofstein V. P. of
being well
are
.
Loss
The
has
Worthington
investors.
to their
not
obligations.
F.
up.
though more money
becoming available for the purchase of short-term Government
is
T.
surprising
not
was
be given
larger offering of weekly Treasury bills
issues
Thomas
it
year
Thursday, February 23, 1957
.
proposed Federal budget for
The Government market is
start
.
Association's directors specify areas where reductions
made to prune Administration's
Governments
on
.
respon¬
a
fices
sibilities and encourage the estab¬
York
lishment of interstate compacts as
c.f
securities
at
120
business
Liberty
City, under the
Smecial
Situation
from
of¬
Street, New
firm name
Analysts.
-
Volume
185
The Commercial and Financial Chronicle
5626
Number
*
>
(1011)
ff ,i
.•
V-
Millions of Dollars
?>y. y
UNION
CARBIDE
CORPORATION
CARBON
AND
1946-4?
!48
'49
'50
7955®.
1
956<')
Sales.......ii
.
..
'52
-53
'54
'55 '56
'52
'53 '54
'55 '56
Salts
001
Net Income.
'51
..
$1,324,506,774
$1,230,554,556
....
146,233,444
145,834,416
;
.....:.....
...............
Millions of Dollars
.
'
Per Share.
.-
.
Dividends Paid
v
-
.
(3)
■
'
■
*t •
Surj>lus.
Current Assets.
*
.
* :
'
4.86
4.86
.
91,956,493
....>,
>
>
87,206,032
.
*
t
.
.
.
3.15
$
.-.
Current Liabilities.
715,406,189
$691,500,489
237.656,800
,
^
f....
528,088,998
•
.
.
Total Assets.............
3*00
580,097,003
Per Share (3).;
Earned
«
.
.
.............
•
•
.
1,459,748,536
237,272.875 '*
0
1946-47 '48
1,404,460,065
'49
'50 '51
Net Income and Income Taxes
'
'
•<
i..
•
.
..
■ ■
?."•
Shares Outstanding;
Numljer of Stockholders (5).
Number of
Employees
J
■
.
.
.
.
118,391
..
114,310
79,000
76.000
*;
.....
December 31, 1956)
Operations of-The Visking Corporation (acquired by Union Carbide, on
solidated.
(1)
r
(3)
Operations of The Visking Corporation
have been eliminated.
\
are
'
Millions of Dollars
are con¬
T
,,
(2)
29,126.619(4)
30,088.510
...,,
combinedwith the exception of intercompany sales, which
Excludes dividends paid by The Visking Corporation to its stockholders.
(4)
Excludes 864,449 shares issued for net assets of The Visking
(5)
Excludes stockholders of The Visking Corporation.
Corporation
on
December 31, 1956.
"
.
1918'20
'25
*30
'35
'40
'45
'50
Dividends Paid
Copies of the complete 1956 Annual Report of Union Carbide
and Carbon
able is
processes
Corporation will be furnished
on request.
illustrated booklet that describes the
an
Also avail¬
products and
of Union Carbide. If you wish copies of these booklets,
Carbide and Carbon
Corporation, 30 East 42nd Street, New \ oik 17, N. V.
.please write
the
to
Secretary,. Union
Thousands
120
100
!#|§£
80
UCCs Trade-marked Products include
Flectkomet
Alloys ami Metals
Carbide Silicones
Sxellite: Alloys
•
•
•
•
•
Fvekeady Flashlights and
Wricc •
UNION
•
Phkstone Anti-Frecy.e • Haynes
Bakei.ite,5 ixyi.ite,and K bene Plasties • N ATJON AL Carl>ons
Chac, Agrieiiltnral Chemieals
Phkst-0-I.ite Acetylene
LlXDKOxygen
•
Synthetic Organic Chemicals
DynelTextile Fiber-
•
Lmon Calcium Carbide
•
Pykoeax Gas
•£=k"...t,
1917 '20
'25
'30
'35
'40
■
'45
Number of Stockholders
'50
'56
2?
24
enforced
doubt that
We See
tion. It has
and in.no
no
way
altered its course, and that it has no
-measure
intention
It
long been evident that Russia has in
of
doing so. The Kremlin has from the first
of the United Nations as a forum to preach its
use
gospel and do push its power and influence further and
further around the world. It has from time to time pre¬
tended to be interested in
"justice" and international law,
t
'
•
•
.
1
is
•.
' ;
1
•
'*
•
41
England and France yielded to pressure and with¬
drew their forces from
Egyptian soil, but they did so
doubtless because it became obvious to them that they had
much more to lose than to gain from not
doing so. Win¬
Churchill
ston
when
Britain said that he
he
became
had
not
come
the dissolution of the British
over
Prime
war
into
Minister
office to
Empire. That
or
of
preside
similar
■■■■■
U
^
Continued
from
backward peoples. The
Middle East,; and India (together with surrounding re¬
gions) are cases in point. Most of^hese peoples have been
"colonies" or parts of
J^estern empires, and are suspicious
of and hostile to any < sort oMhterference or even at¬
tempted persuasion which emanates or seetfis to emanate
from the w£st. But
and
jealousies
among
become evident.
The efforts
Kremlin to fish in these troubled waters do not
These parts of the world are
cause.
of the
help the
in
1956
not
the
in
1956
estimated
are
his
an
had
sav¬
at
lion, as against $17 billion in 1955.
1957, the labor force will in¬
crease
wages in many indus¬
tries will increase
and, with
the support of high business capi¬
.
.
.
.
.
.
expenditures and
is
government
all
of
kinds,
there
tures
believe
to
reason
business
' of
and
in
the
the like.
or
But
always in such
as
The Time May Come
balance,
may
come
effectively support
at least would be
the
world,
some
strong enough to maintain the
has
time
have served
not
as
a
which
peace
dreamers
long while past. We
are
of
have
afraid that
yet arrived. The United Nations will
good
could reasonably be
a purpose as
pected of it at this time if it is able to act
as
an
effective
mediator in
disputes which arise and which threaten the
of the world. Possibly such a career for the world
organization would in the end do about as much to ad¬
peace
vance
the
ization
cause
of
We
man
should
of world peace as
in circumstances
be
have
such
as
excess
in
far
im¬
an
of
likely to become sufficiently seri¬
in
ous
J957'to"bi*ing about a set¬
■
t
'■ \[% ' -.V IV,.,
back.
,,
It
will
be
substantial :
.
.
recognized
that
a
of* "con¬
percentage
expenditures
sumer
optional,
are
that is, they are of the nature
.
luxuries, and
chology,
brought
in
tinue to
clash
from
sections of the world
time
that these ambitions will
to
were
so
time.
the
in
one
or
perhaps
a very
few
decline
a
spending (described
.
However that
.
.
not
am
anticipating
and
op¬
be,
such
any
estimate
my
increase
as
may
Time
con¬
was
when
large
powers
that
a
sort of peace
would
This
orders
Inventories
tant
factor
change
another
are
in
in
the
one
any
inventory
GNP,
industries.
somewhat
in
.
.
I
.
$3 or $4 billion to
of $3 or $4 billion
say,
at
1956—
making,
the
up
will
remain
levels
with
1957
in
of
present
at
the
probability-that they may increase
moderately.
.
.
decline
total
negative swing which,
today, is a fairly large sum.
mild
1954
set-backs
in
were,
by such
of
1949
and
In
the
12
months
October,
1956,
increased
about $6V4
and
sales
are
what
.
.
.
billion
situation
This sounds
.
ominous, but
.
inventories
the
was
of
end¬
higher percentage
a
than
ago.
year
The
1953-
part, accounted for
ing
of
a
even
the
a
a
some¬
detailed
ex¬
figures is fairly
Retail trade inven¬
.
tories
were
tories
increased
unchanged from 1955
levels, and wholesale trade inven¬
lion.
$1.7
There
billion
less
was
in
than
$1
alT
know, is
spending,
inv.e<ntori
of
man¬
e s.
The
greater part of the increase—$3.6
billion
—
was
in
manufacturing
inventories
lion
this
of
$3.6
.
.
.
$2J'2
billion
bil¬
was
in
fol¬
years
the
war,
we
War
.
and
.
the
con¬
-
Eisenhower.
This
entire
boom
old, judged by past
history, and appears to
waning slightly. For example,
now
economic
be
business
activity,
Federal
Reserve
shown by the
as
of
Index
Pro¬
duction, has not been moving for¬
ward
of
dynamically
since
October
1955. In
fall
the
of that
year,
the
Federal
143
Reserve
Index,,
was
in October of 1956,
it was
having gotten higher
in the interim. (The estimate for
December, 1956, is a little higher,
about 147.) The Index for the en¬
tire
year of
1956 improved 3%
-over 1955, and, as! previously indi-»
cated, the probable 1957 increase
.
146
.
.
.
.
never
.
*
be smaller than that
will
of
1956.
Secondary Postwar Recession?
as«we
high-voltage factor
in the national economy; r Despite
the
a
and its
on
borrowings
by states and municipalities, de¬
high
cost, of
restraining effect
money
mands for schools, hospitals, mu¬
nicipal * buildings,* etc.,' continue
high.
In addition, we have the
highway
new
call
which
expenditures
programs,
substantial
for
both
by
Federal
is
It
ernments.
and
state
gov¬
expected that the
Federal budget,
new
for the year
ending July, 1958, will call
larger expenditures than in
for
the
preceding year.
In the calendar
year. 1957,
actual cash disburse¬
will
Govern¬
Federal
the
by
billion
probably increase $1.5
to
billion;^ state and
municipal expenditures are likely
to increase as much as $3 billion.
$2
Moderate
All
in
.
Increase
adds
V A
great
the
bil¬
the esti¬
will
volume
possibly
.
be
.
of
in
the
.
one-half,
effect
the
represent
$428
of
over
increase
physical
balance,
GNP
a
will
higher
This
percentage of
GNP is moderate
that
volume.
pect
of
in
.
increase
a
represents
actual
Federal
physical
Reserve
show
to
nominal
in
particularly
Accordingly, I would
the
Production
only
.
precentage which
increase
an
.
increase
ex¬
Index
in
1957
...
There
consumers.
of
number
industries
tures
Turning
the
to the outlook for
now
money
Yields
market
in
1957:
In
ing the first world
set-back
erate
the
the
banks
panies,
business
and
and
that
insurance
the
I
com¬
prospects
for
for
this
foresee
.
there
.
in
dynamic
when
what
the
called
mists
recession,
war
a
manner
had
we
You may
fairly mod¬
war.
1919
and
1920,
moved forward in a
economy
very
1929,.
until
econo¬
many
post¬
secondary
which
"cer¬
was
understatement if there
one.
The same thing
an
was
happened after the Civil War and
in
rences
had
such
occurrence
second world
close
to
that
that
we
twice
we
are
development.
such
any
fact
war,
evidence
visible
no
indicating
yet
as
is
there
occur¬
have not
following
We
Europe.
an
end of the
the
and
similar
been
have
there
this
in
suffered
through
sosecondary postwar reces¬
country
called
sions,
view
not
does
to
bound
of
I have
the
that it is
again. But, in
mean
happen
other
considerations
just mentioned, it is some¬
thing to keep in mind.
of
All
in
this
1957
through
leads
we
what
a
am
me
are
to
believe
likely
to
go
be
leveling-off-period.
will
not
prove
to
yet ready to sug¬
gest holding up the red light . . .
as I have made clear in expressing
view of
my
I
view of the loaned-up position of
.
ample of which appeared follow¬
remember that after
While I
on
pa¬
post-war recessions, the great ex¬
largely
Top
Also
by industry.
of
to
g.,
is the historic record of secondary
that
Close
(e.
„
a
aluminum) that
more than ample
.for demands.
Profit margins are
being squeezed in various lines
of business, and this could
well
affect plans for capital expendi¬
2%, to a figure of 146, as
against the estimated 1956 figure
143.
signs in
are
t
chemicals,
capacity is
per,
the
of,
say,
worse
takeq^ place in tfre ; liquidity
position pf bankfe business and
The
prices.
change^or the
has.
ever
billion for 1956. Only
$411
of
actual
3%%
up
.
to
up
neighborhood
.
mated
part
GNP
this
of
the
lion
bil¬
increase
an
non-durable
of
'
swing in the inventory
a
have
...
of,
makes
.
Korean
period is
Rising Government Spending
Government
impor¬
from
early
followed the election of President 5
con¬
probable that in¬
seems
ventories
because
a
the
tainly
year
the
the "end
enlargement in our defense spending. Then, coincidentally or otherwise, a new boom
,
excess
other. factors
ous
ment
accumulation
al¬
in pro¬
sequent
appear to
Inventory's Prospect
.
we
of
years
:<i
1957
in
billion.
ufacturing
much under the domination
those
ments
by $8 billion to $10
12
.
of
justify the increase in inventories
that
is
expenditures
consumer
will
result
and
durable
of
fears
could change
habits of the con¬
spending
tional.
I
about by
whatever nature,
of
reasuring.
peoples are
likely to lose sight of their "interests" and their ambi¬
industries.'
in
mind -that
in
nearly
busy making good the short¬
ages of the war years
then
we had a new impetus
arising out
aircraft
and
.
now
selves to be led into the idea that meanwhile
tions. We must also expect
not essential
are
keeping properly clothed, fed,
and
housed,
A change * in. psy¬
amination
our¬
unfilled
machinery
.
could be done by organ¬
existing.
ill-advised, however, to permit
increase
the
be
we
instance,
for
position.
ex¬
in
productivity.
While, as ybu all
know, ;this
is recognized
as
a
problem, I do not visualize it as
an
time when man's thinking will
sort of world government which
internationalism
an
dreamed about for
that
a
the
due to the movement of the vari¬
...
,.
lowing
represented* by
govern¬
past,
increases
wage
a
;
was
least
progress
There
of this figure
in
bear
us
had
duction.- In
con¬
greater interest in the
of the group as a whole than in purely local ad¬
vancement, and that condition has not been present as yet.
psychology
and the business-
were
$10 billion in the year
ended September, 1956; $9 biflion
balance should appear
change,
sine qua non of success is a
general
most continuous advances
creased
GNP-^it
peared
a
the
consumer
have
substantial
very
this can be in¬
terrupted if some important im¬
seen
sumer
political Federation
a
of'per¬
ment,, develops
a
sort
petual-motion aspect; As
the
cases
imponderables *
u p o n
•
as
„
increase
in unfilled orders; such orders in
the durable goods industries in¬
...
Europe." In point of fact the peoples
generally are perhaps more diverse and more
intent each upon its own ends than the various countries
of Europe. There have been times when it almost
ap¬
if the logic of necessity might drive the coun¬
tries of Europe into some sort of at least semi-effective
pending
and" aircraft in¬
These
industries have
t
of the world
as
science—with much de-?
an exact
"
clude, therefore, that the present
sumer
expenditures will at least inventory position is not paticuequal those of 1956.
larly vulnerable.
It must be borne in mind that ..-As to the movement of inven¬
this assumption is dependent upon tories in 1957; it is a well known
a
continuance of the state 6f fair fact that businessmen usually in¬
inventories
equilibrium that, presently .exists, crease
as
sales inT
in the economy
under which crease or show signs of increasing
the 65 million employed spend a
decrease them if sales de¬
good percentage of their incomes. cline or show signs of declining.
Since I believe sales in 1957 will
This, supported by big axpendievery
to
sort
/
■
/
,
machinery
dustries.-
savings
$20 bil¬
consumer
the
In
in 1955.
showed
In
of
a
:
7"
.»
much
as
increase
to
.-./and
.
did
consumer
t
inclination
ings
increase
they
as
of "United States of
'
;r
Let
did
1956',
politically speaking in
Similar difficulties have beset efforts to form
/
-
*.
r..
specu-
-man).
formative stage. Few, if any of them are ready to be¬
come internationalists in
any sense of the term.;
a
j
!
.
necessarily be quite
of the
the overlords vanish local rivalries
as
soon
.
(such
expenditures
equivalent of it
■
must
:
-
4
page
V
tal
the |
alize.
^'''v -lative since economies is far from
r^
•
,
sentiments without question dominate
or
.
-
rent
much of the cur¬
thought in Britain and in France. They can, of course,
be expected on the whole to employ much more finesse
in their dealings With the world than is to be found in
the actions of the Kremlin. They, particularly perhaps
Britain, have long been relatively enlightened rulers of
large sections; of the earth. They will without doubt pur¬
sue their interests with moderation and
circumspection—
and ordinarily with foresight—but they have interests
which at times run counter to those of other peoples in
various parts of the world and they do not intend to sur¬
render or neglect them. They probably could not long
survive as first rate powers if they did.
In other large sections of the
globe, other problems
exist which tax the patience, the wisdom and the toler¬
ance of
mankind, all growing' out of ardent nationalism
yearr"®OI£
likely to be*,
not
one
a
■
tures
More to Lose Than to Gain
r
colossal
a
long while to come, but that is no reason /. yu is interesting to consider the <
why it should not be undertaken as opportunity presents - possible developments beyond'
itself
'
"
\ .!'
V "
•
^
.
1957, although any such attempt *
usually the underlying purpose of stirring up trouble
own
aggrandizement has been plain enough. There
is no reason whatever to suppose that Communist China
is in the least .interested in anything but ways and means
of expanding its place and position in the world. Neither
Russia nor Red China has the slightest interest in bringing
an
end |to imperialism or exploitation except when in¬
dulged in by capitalist countries.
2
no
sort ot
completed for
its
-
Thursday, February 28, 1957
; i
throughout most of the world. There is little Vyear, yt would
a
'peoples of the world, is
but
or
.
appear that,
pax.Britannic* prevailed,for a good •
the
many years. The decline of the British Empire is; what has-iSlSHK u/uaily.
led many to find a "power vacuum!' in the- Middle East £f develops around this iime^of the '?
and to suggest that the United States step in to fill it.
yfa£ However, with yields' of But of course, any such suggestion as .this immediately
w^
"^vermnents c
arouses dark suspicipn in the minds of the peoples m these
yielding close to dYz-%, I rather areas—suspicions which our protestations of, innocence of/, feel that'we are close to the top ;
imperialistic interests do not allay:'y
v ^ in ^yields. oThis,^ of course, ^ will.
The task of reducing the causes of conflict among the
J£'is
th^nTno^v^u-
was
Continued jrom first page
made
Chronicle
The Commercial and, Financial
^1012)
do
believe
follow
in
.
.
developments, particularly
the
On
1957's prospects
we should
carefully
capital
the other
—that vital
goods
sector.
hand, the balance
equilibrium to which
j
1
Number 5616
185
Volume
carry
much
on
isting,
us
longer
tell what may disrupt this equilib¬
rium
ous
.
be
a
/
;
but, certainly; an obvi¬
.
disrupting - influence would
sharp decline in -business
we
thus
which
ment
One can never
than through 1957.
had an .environfavorable to' a
;was
great forward movement in" business.
.
V ;
It must, be recognized
mediate future.
Over, a longer concluded that the year would be
period, the implications of this another good one, but' only mod¬
loss of confidence could well af- erately better than 1956. We then
/feet business condition^ in all in- advanced various considerations—
u.
.
■
dustrialized countries conducting mainly negatiyein character—r einternational trade, and to a de- garding the longer term future.
gree that would offset farther inArthur Weir Adds 7
creases in defense expenditures,
To recapitulate:
We have re(Special to The Financial Chronicle)
v
.
...
that this confidence
regarding the
foreign situation, has diminished
as
a
result of recent events in
Europe and the Middle East
t
,
Joins Filosa Sees.
'/Special to The Financial Chronicle)
GRAND
William
JUNCTION,
Fjiosa'V Securities
Main
Colo,
street,.
,
—With Bardon Higgins
.,
viewed 1956 and found, not to our
surprise, that it was a good year,
but not greatly better than 1955.
As to 1957, we reviewed the various factors of the GNP, etc., and
'.
■COLORADO SPRINGS, Colo.—
Alexander
R.
Ormon
.
has
been
(Special to The Financial Chronicle)
DULUTH, Minn/
—
Rbbert W. '
Hanft is now connected with Bar-- *
added to the staff of Arthur Weir
don
& Company, Burns
Torrey Building,
Building.
Higgins
Company,:' Idc.,
&
/
t
.
Foreign Situation
V
.
in discussing the economic pic- i
ture, it would be unrealistic not to
consider the foreign situation. We
have, thank God, come- through
the
disturbing events in Egypt
without
war
involving
Russia,
,
.
England arid France^ in which we
would
in
all
likelihood
have
ultimately
ourselves
found
par¬
The highly ill-advised
and French,
the implications of their quick
ticipating.
actions of the English
and
acceptance of a cease-fire follow¬
threatening notes from;
just about removed the
last vestages of prestige they had
retained in the Middle and Far
the
ing
,
Russia,
other
so-called
have,
as
recently.
clined
France
appears
in
factor
fiber
Middle
the
r
7
nature..; A
.
growth industries
vacuum
sim¬
certainly
despite
For
exists in the Middle East,
likely
in
up
Report write
Allis-Chalmers Manufacturing Co.
Shareholder Relations Dept.
offer
don't
the
,
the vacuum if
support to states
desiring help. I per¬
fill
to
copies of the
■Annual
pipings to the contrary from
various Arab states, and Russia is
faint
we
WORKS
PUBLIC
CHEMICALS
to be a
East and
England is showing signs of a
ilar
>
prestige,
lack the ma¬
to
moral
and
terial
METALS
—serving the
de¬
;
.
Apart from matters of
.
AND
•
:
their
substantially
have
MINING
AGRICULTURE
ALEIS- CHALMERS
which
of
memberships
to
<
»
a.
repercussions in Italy and France,
the home of large Communist parseem
AND
non-com¬
garian events have even had
ties,-the
FOOD
.V
result
of
events in
Hungary, received
some education on the true char¬
acter of the Russians. These Hun¬
nations
mitted
CONSTRUCTION
it's
hand,
the
worth,
POWER
Oh
mention Africa.
for
what
East, not to
the
ELECTRIC
area
1125 S. 70th St.,
Milwaukee 1, Wis.
sonally feel that we could not affofti to have the Middle East oil
in the
control of the Russians.
essential .to
is
Europe
this
is
the
in
ex-President
guess
my
factor in
a
it
Eisenhower
President
It
of
that
the
Washington..
With
Truman supporting
and it is
definitely
thinking
economy
seems
the
Congress
will
joint resolution pro¬
posed by the President, or, some¬
thing very much like it. Whether
we
like it or not—and there is,
that
likely
for concern
of course, good reason
responsi¬
bility — we must recognize that
the assumption of these responsi¬
taking
at
MANUFACTURING
•
Allis-Chalmers
DEFENSE
EXPORT
Highlights
1956
this
on
new
bilities is undertaken
for our own
security.' Ever since Russia recov¬
effects of the second
Sales and Other Income.
$551,592,589
have been conduct¬
world war, we
fight for our lives—blood¬
Korea—against a pow¬
and ruthless enemy of West¬
ing
a
less
since
Strength
Military
Keep
Earnings
per
Share of Common Stock*
Dividends Paid per Share of
Shares
Common Stock*
atomic
bombs, in
creating a stalemate.
We
would start a preventative
effect
never
and
hydrogen
and the Russians, I believe,
not start something they are
sure
they can
There¬
finish.
fore, if we remain strong not only
in arms but throughout our whole
and in our whole spirit,
do not believe we will have to
economy
I
face
in
the
the
prospect
near
of
all out war
is
my
cent years
the belief that the
period of peace and
was
world faced a
a
reduction
sions.
The
in
international
appearance
of
conservative governments
■•ountries
also
the
■
3.03
2.00
122,899
Common stock*
186,471
8,141,435
Preferred stock
7,888,724
of
added
in
the* Western
to
the
businessman.
Dividends Paid
Equipment
Construction
Preferred stock
635,857
16,044,658
941,278
15,526,911
Industrial
Farm
Machinery
Equipment
Equipment
General Products
12,289,900
18,647,100
Common stock
159,852,403
153,028,580
Earnings retained
124,129,723
120,455,193
296,272,026
Total share owners' investment
292,130,873
34.88
Ratio of Current Assets to Current Liabilities.
273,895,488
3.13 to 1
Common Stock*
Working Capital
34.67
267,495,462
Book Value per Share of
5.49 to 1
Number of Share Owners
2,147
47,449
...
..
699
40,222
38,803
40,182
194,140,323
Preferred stock
many
the actual economic conditions
ex-
/Illinois
Bpstpn. Massachusettsvv
Cedar
Bapids, Iowa
Gadsden, Alabama •'•••
Harvey T:. Illinois
Independence, Missouri
LaCroase, Wisconsin
176,715,591
Employes
.
Ca Porta, Indiana
Norwood, Ohio
Oxnard, California
Pittsburgh, Pennsylvania
Number of
Payrolls
*
employes
Springfield, Illinois
Terra
Haute, Indiana
Wast
Allis, Wisconsin
Adjusted for two-for-one stock split in June, 1956.
Essendlne,
England
Cach'me, Quebec, Canada
more
world
plants
7 B eardstpwn,
ten¬
confidence of
Combined with
divisions
Power
Common stock
future.
belief that one of the
important factors responsible for
the world-wide improvement in
trade that has taken place in re¬
It
Mm
Outstanding
Preferred stock
Russia and we possess the
not
§
Buda
Both
will
:* :7:::
24,805,326
2.00
Earnings..
Share Owners' Investment in the Business
'
war,
::
■
34,774,217
2.42
;.
Common stock.
I
civilization.
ern
Jlffi'v'-' ":*
$538,045,485
33,822,287
20,355,045
All Taxes
ered from the
erful
1955
!
the
adopt
-r-
is now with
Company, , 4117
Cline
B.
'
pital: experufi t ures.' What' l am
suggesting is that the private cap¬ and that this cannot be considered
italistic; system has not.produced as anything but an unfavorable*
in j the overall pic-!
an
ever-advancing economy
. .'/- development
and it will, I believe, be well to ture. However, I do not feel that
its effects, in.terms of economics,
bear in mind the longer term con¬
are
siderations just referred to.
likely to be. felt in the imca
-
(1013) v25
The Commercial and Financial Chronicle
.
wtth
gtill
referredv-is
have
and'may
w
St. Thomas,
AKIlliiilALMERS <AC.
Ontario, Canada
:
:
1
V?
26
The Commercial aid Financial Chronicle
(1014)
Continued
jrom
the past several years, we must
6
page
that
sure
it
the fairest
is
be
the
and
best system we can devise.
Federal Tax Policy and
The Economic Challenge
not a
single economic activity which is
not affected or conditioned by our
Federal
Federal
brought
to the attention of the Congress
and
the Administration
by de¬
tax
sctly matched by increases in
Implications for Tax
ex¬
penditures.
the
Brundage, Director of
of
Bureau
the
Budget, ap¬
peared before the Joint Economic
Committee in its hearings on the
President's
sought
Economic
for
will
changed
from
subbstantial
any
believing
be
Report,
I
him
determine
to
whether there is
basis
Policy
There are, I believe, serious and
When M.
this pattern
the future.
in
important implications for fiscal
policy, and more specifically for
tax policy, in this budget pattern.
First, while
President
the
that
growing
de¬
mands of the American people for
services will in time be
met, we may nevertheless inquire
public
which
to
as
Specifically, I asked him: "Do you
see any prospects in the succeed¬
ing fiscal year (that is 1959) that
our budget estimates of expendi¬
ment may
tures and actual
level
Government
of
er
less
be
than
expenditures will
the
$71.8
billion
which is projected in this budget?"
Mr.
Brundage replied: "I doubt
I
it.
going to try.
am
ready starting
tions
and
I
We
would
al¬
are
1959 projec¬
on our
hope
would be able to hold
levels, but I doubt if
cut
we
the pres¬
to
ent
that
of
I
will
not
predict that
fail to arrest this
eral
growth in Fed¬
expenditures in the
ture.
But
if
will
we
fu¬
near
approach
we
this
question realistically and observe
the recent trends
think
reservations
pattern
of
creases
with
will
in the budget, I
some serious
must have
we
Forces
whether
matching
be
soon
to
as
this
in¬
revenue
spending
changed.
Prompting Spending
pattern.
in
crease
The first is
the
in¬
expenditures for
our
us,
But
$2.9 billion increase in total
spending
shown
in
the
1958
budget. Perhaps this amount could
reduced
by
increases
in
ficiency, in real terms, but
ef¬
long
so
great¬
a
have
we
to
in which State and lo¬
governments
their
mav
overcome
present financial limitations
in order to avoid
ever-increas¬
an
Responsibility for increasing the
capacity of State and
the world remains in its present
state of affairs, few if
troubled
conference
press
Let
me
on
Jan.
quote his words:
24.
"And
I
will say this: as
ican people
long as the Amer¬
demand, and, in my
opinion, deserve the kind of
ices that this
have
got
serv¬
budget provides,
to
spend
this
we
kind
of
money."
The
President
is,
of
course,
Our representative Federal
Government is quickly responsive
right.
to the wishes of the
country,
of
our
there
and
people of
is
no
our
aspect
life which the nation
more
dearly prizes than this responsive¬
It is evident that the
people
have increased their demands on
Federal
last
few
Government
Can
years.
in
the
predict
that these demands, which result
in large part from a
rapid in¬
in
crease
in
urban
tribution of tax
Federal
But some redis¬
sources among
the
Government,
the
States,
and the localities may also be
re¬
When the Federal Gov¬
is ready to face up to this
quired.
ernment
we
population, particularly
communities, will soon
of
underlying the
rising
Government
spending is inflation. The prices
of virtually all the goods and serv¬
ices
which the
Government buys
For example, total
have gone up.
net
purchases of goods and
ices
serv¬
in calendar 1956
ured
each
were $300 million
than in calendar 1955, meas¬
in the prices
of
actually
than
in
prevailing in
years.
They were
those
$1.3
billion
less
in
1956
1955,
ices
of goods and serv¬
provided,
in
real
terms,
the
re¬
the
business
in which
decision-making at
affect
personal
and
way
and
of
with
with
level,
for
arguments
and
against various approaches to tax
reduction
the
on
basis
of
their
alleged importance to the nation's
economic
without
government—there is
ever-widening
significance of
structure
This
i»
1953
the
Federal
in
the
1954.
There
in
was
our
changing economy required re¬
view of existing tax law to deter¬
mine how well
the
nation's
it conformed
of
I
one,
justice
am
stand¬
our
fairness.
and
No
will quarrel with
sure,
broad
In
with
long-range economic
requirements and with
objectives.
-
Second,
reexamine
must
we
general tax reduc¬
tion.
The
modest
budget
sur¬
pluses
estimated for the fiscal
for
prospects
1957 and 1958 impose at
slight curb on current,
years
least
a
widespread inflationary pressures.
These
surpluses
course, on
contribute
further
to
increases in
government spending.
Experience
has
shown
of
course, that we must always be
prepared for quite rapid changes
in
the
economic
us,
outlook.
If
was
which
venture
vast
resources
com¬
job, the Code of 1954
monumental undertaking.
a
ful
the
of
number
of
in
provements
resulted
in
other
many
Code
important
failed
to
lus
inflationary
to
total
that
and
is
demand
a
and
interpretations
the
under
1939
Code to satisfy the daily demands
of administration.
Apart from
mission,
the
the
numerous
of
errors
1954
Code
of
errors
com¬
reflects
omission.
tions
of
the
the
most
were
car¬
virtually unchanged into
law, at least insofar as
over
new
basic
substance
is
of
these
concerned.
pro¬
An
out¬
standing example is afforded by
Subchapters O and P, dealing with
capital gains and losses. Since the
inception
of the
income
the
plagued
with problems of definition in this
tax
lawmaker
We
area.
has
have
tax,
been
capital gains
seen
treatment extensively
proliferated
to the point where
now
to
it
applies
significant number of trans¬
a
actions
in
nizable
as
of
tion
nothing
capital asset
recog¬
as
or
a
exchange is involved. The
or
Code
which
a
1954
made
toward
contribu¬
no
resolution
difficulties,
but
these
of
rather
added
to
them.
balance, I have had to
that
much
structural
of
the
con¬
work
improvement
in
.
of
our
tax system remains to be done.
As
result
a
of
exoerience
our
the
preparation
members
many
than
more
the
of
tremendous
ever
Code
aware
burdens
of
imposed
example, on.them in discharging their re¬
efforts were made to afford tax sponsibility.
The present Chair¬
relief in the hardship cases which man of the Ways and Means Com¬
had been brought to the attention
mittee, my friend Jere Cooper,
of the Congress and the Treasury.
was
I
believe, particularly im¬
Today we find numerous instances pressed by the strain which the
in
which
failed
Code<»for
these
to
this
resulted
in
have
objective
demands
or
requirements
have
provisions
islation
for
equiv¬
alent relief from similarly situated
taxpayers who, because of super¬
ficial
for
differences, do
the
benefits
tee
the
need
for
revision
of
the
income
to
lems
tee's
efforts
nues
and
also
were
respectable
management
personal
practices
business
of
affairs.
made
Today
in
and
find
we
long
Federal
would
Code
avoidance.
sought
to
The
provide
reduction will increase the oppor¬
tunities of the private sectors of
precision
the
1954
greater
and therefore ease
in
minimize
the
law
taxpayer
in
order
to
uncertainties
he
of the
than
use
Subcommittees
on
taxation,
in
the
he
than the rest of
more
opened up new, unsuspected
tax
summer,
permit closer con¬
the principal prob¬
experience
fits
of
last
convinced
lying within the Commit¬
jurisdiction.. Because of his
that having done so, we have also
ave¬
on
of
would
centration
leg¬
the Commit¬
extensive
more
before
which
the
of
believe,
I
ever
responsible
then functioning. By
was
middle
was,
qualify
the
of
imposed
it
as
present
not
in
which
as
specialization
in
a
field
of
appreciated
us
whole
the
obtain
the bene¬
Committee
result
of
inquiry
the
which
of subcommittees would make
use
possible.
three
His
such
economy
to
expand
their
spending programs and provide
impetus for further real growth
compliance and
administrative burdens. Today we
find new uncertainties have re¬
on
without general price increases.
placed
decision
to
set
subcommittees
—
up
the
mittee
Third,
to
and
we
defer
forts
for
believe
can
most
im¬
longer afford
large-scale ef¬
no
serious,
constructive
Federal
our
I
tax
revision
system.
If
of
we
could count on being able to make
substantial, general tax reductions
in the near future, which all of us
would welcome, there would be
less urgency
for tax reform
old
match
ness
new
find
lagging behind their big,
equally
valued
get
as
we
work
must
of
tax
now
reform.
put
tax
a
justify
to
treatment
Actual
required to.continue carrying fis¬
major
cal
substantive
the
magnitude of
are
are
by
es¬
also hard
discrimination
among
creative
in
ac¬
apparently
the economy
areas
milestone
history and
of
efforts
the
for
to
date
Code
technical
revision
were
in
where
and
made
in
into
the
our
nation's
fiscal
monument to Chair¬
a
Cooper's
man
vision
and
highly complex
insight
field
of
Federal taxation.
Let
me
work
The
precedent
a
the
of
on
in* the
nation's
tax
Re¬
system
nonpartisan approach.
a
Subcommittee's
work,
as
organized, has two major as¬
pects: One involves an investiga¬
tion of the substantive policy and
technical
adequacy of our tax
statutes, and the other is con¬
now
cerned
and
with
the
administration
enforcement of
tax laws.
our
In connection with the first
initial
our
review of
all—of
approach
a
aspect,
has
been
a
number—certainly not
technical
and
clerical
er¬
ambiguities, and instances in
rors,
which
unintended
benefits
or
-
hardships have been experienced
by taxpayers.1 As you know, con¬
siderable
in
progress has been made
this phase
has
served
of
our work, which
only to clarify is¬
but to estab¬
foundation for co¬
not
in many cases,
sues
lish
strong
a
operation among the Subcommit¬
tee
the
and
staffs
serving it, and
briefly
committee is
the
Internal
long-range
forward
provements in
"A
second
that
real
-
providing
looking im¬
laws.
our tax
phase:
of
der
.
the
committee's endeavors is
Sub¬
now
un¬
Advisory groups have
been established to investigate the
substantive policy and technical
problems in Subchapters C, J, and
way.
K,
and a fourth advisory group
has reported on some of the prob¬
lems
confronting
the
Internal
Revenue Service in administration
and enforcement of the provisions
of
the 1954 Code.
fortunate
We
have been
in
securing for these
groups the services of many out¬
standing tax lawyers and account¬
ants, assisted by the able staffs of
the
Ways and
the
Joint
Means Committee,
Committee
Internal
on
Revenue
Taxation, the
Department,
and
the
Treasury
Internal
Revenue Service.
\
,
Without in any way minimizing
the importance of the work so far
done and
under
now
that
point out
I must
way,
it represents
only
beginning in the task, pf revising
tax
system in the light of
basic standards of fairness, sim¬
plicity, and economic adequacy.
The reqiurements of all of these
a
our
standards point to the same ob¬
jective—a tax system .character¬
ized by simplicity, relative ease of
compliance
and
administration,
absence
of
in
discrimination, neu¬
impact among altern¬
uses
of productive resources,
trality
ative
high degree of responsiveness to
a
in
changes
and
economic
lack
finally,
small
and
new
meration
businesses.
these
of
conditions,
against
bias
of
Enu¬
standards
and
characteristics highlights the mag¬
nitude of the job still to be under¬
taken.
-There
major
are
-
with which
areas
has
been
tax
treatment
substantive
our
work
so
far
concerned
only periph¬
erally. One of these, as I've indi¬
cated, is the whole broad question
of capital gains.
Another is the
the
from
third
to
the
large
and
think
must
we
resolve
A
va¬
major limitation
rapidly
move
the
problems
and other important tax
do
derived
issues in tax exemption.
ried
I
income
of
extractive industries.
concerns
on our
in
an
and
these
areas.
A
ability to
is lack of widespread
so
awareness
interest.
public
Until
we
adequate public response
which
I say
that
ever,
purpose
a
of the Sub¬
close, objective
major
provisions
Revenue
Code
re¬
to
predicate
them is very
inferences
future
ap¬
failure
head-on
of
"objective" advisedly.
searching, constructive
issues
of
The spirit of the Subcommittee is
of
this basis
on
major
upon
broad
1954.
only
sarily have to proceed slowly.
I would like to point out, how¬
on
Chairman.
of
is
progress can be made in
substantive reform, we will neces¬
is
view
It
In¬
it
the
am
confident, to
non-partisan char¬
the
as
The
I
the
Taxation, which
great privilege to serve
Subcommittee
Revenue
my
served,
establish
acter of the Subcommittee's work.
have
describe
of the
ternal
one
experience
those
of
We
whole.
If the Federal tax
system is to be
burdens
cer¬
and small businesses
new
re¬
for such reductions
intend¬
was
highly unbalanced growth
a
which
the
Code.
which, presumably,
were peculiarly important to eco¬
nomic
development.
Today we
tivities
with
old
tain activities
nomic
latively remote,
Code
even
tax barriers to busi¬
remove
tablished rivals.
the
the
an
growth and to encourage
ally
be
alleviated
by
sizable,
widespread tax reductions. But so
long as both budgetary and eco¬
make
are
those in
ap¬
provisions
new
which
Finally, the
ed to
the
of
for
are
considerations
Reve¬
a
in which
automatic¬
Internal
complexity
Many inequities and im¬
balances in the distribution of tax
almost
the
on
Taxation, the Subcommittee
Excise Taxes, and the Subcom¬
nue.
imposes burdens of confusion and
burdens would
now.
that
and
ones
Subcommittee
on
Customs, Tariffs, and
Reciprocal
Trade
Agreementswill, I am confident, prove to be
plication
vision
also
ried
be¬
1
tax sec¬
establish
based
pertaining to some of
pressing problem areas
came
Throughout the income
Thursday, February 28, 1957
.
the Treasury Department and In¬
ternal Revenue
Service.
"It
has
Ways~and. ,Mean* Committee
for
.
Many provisions of the 1939 Code
eliminate tax obstacles to custom¬
conditions, tax
administrative rules and
the economic facts of life.
balanced
such
which
the
the
Under
of
of
use of our growing
productive capacity, we should be
ready to
supplement easing of
general credit restraints with a
tion.
cial
tax,
reduc¬
application
far defied the capacity of
vocabulary.
And
in many
other instances, it has been neces¬
sary, apparently, to rely on judi¬
our
forces
needed
tax
precise
so
1954,
ary
of
the
has
stimu¬
full
program
instances, it
has had to gloss over provisions,
many
of
to
maintain
In
simplification, greater
equity, and closer conformity with
mands
In
that
the
the
ing the coming months it becomes
subsided
eliminate
in
law.
have
ruling.
clude
the
which
statutes
to
new
before, to
de¬
dur¬
apparent
and
respects,
meet
these
It has had to
never
need for administrative discretion
On
Nevertheless, it is evident that in
the
intended
a
structure.
tax
to
as
were
im¬
significant
our
pursuant
perhaps
interpretation of
resort,
sale
In many respects, it was a success¬
terms
lations
statutory provisions.
visions
jlnternal Reve¬
general realization that
a
difficulty
Treasury Department,
despite its wholly commendable
efforts, has found in issuing regu¬
the
the
which
in
evidence is found in the
com-;
changes
deficient
administrability, com¬
and fairness. Additional
the
the
led to the broad
tax
of
tax
economic growth.
awareness
of
an
the
of
awareness
shaping
our
Code
nue
to defray the ex¬
revenues
penses of
\
short,
the basic
them
of
which
In
losing sight of
of
Federal
taxation-
purpose
raising
development.
changing economic circumstances.
on
mains constants
taxes
accountants,
replete
are
mitted to the
prospects
volume
lawyers,
of the combined
Federal, State and local tax struc¬
ture
or
its
responsiveness • to
fore, will result in increases in
Federal budget expenditures even
the
instances
ing the fairness
however,
when
measured in the fixed prices of
1956. Continuing
inflation, there¬
if
of
scope
The professional
economists
these
by the Federal Government much
more
and
ards
portant,
third factor
pattern
journals
problem squarely, a primary con¬
sideration
should be to prevent
slacken?
The
complexity.
culminated
ness.
the
and
local
arily with them.
for
groups
revisions, and these demands
program
governments to provide in¬
creasing services must rest prim¬
taxpayer
constantly increasing in
are
financial
are
based,
of
continuation of present
tax rates.
Tax reduction, so long
any of us will question the need
.as these
pressures persist,'would
for
continuing and possibly in¬
contribute
to
general
economic
creasing efforts in this category
instability. They would aggravate
of governmental functions.
the already heavy burden on gen¬
The
second
factor underlying
eral credit controls for restraining
increasing Government spending,
the rise in the general price level.
I think, was expressed
elegantly
By adding to inflationary pres¬
and concisely by the President in
sures, tax reductions would
also
his
as
from
the
of
constantly
is
plexion of
ing recourse to Federal aid.
na¬
security, which accounts,
incidentally, for about $2.4 billion
be
ahead,
looking
cal
tional
of the
have to assume
proportion of the over-all re¬
sponsibility
for
public
services
than it has customarily in the past.
seek ways
tax
such shifts from adversely affect¬
increases
There are, I believe, three fac¬
tors
principally responsible, for
this
satisfy these wants. Most
I think, recognize that at
certain times the Federal Govern¬
it very much."
could
we
best
can
impact
system
mands
with the
agree
we
Evidence of the
tax laws.
shown
terms
pliance,
There is, I venture to say,
enormous
have
.
to
and
meet
costly, indeed.
have
I
these
resolve
to
drawn
If the
about
budget
prospects are cor¬
namely, that increases in
revenues will bbe matched by in¬
rect
—
creases
in
spending
—
about
the
praisal and criticism, as devoid as
possible of partisan bias. We seek
only major source of tax rate re¬
to build upon
visions
of
through
such
the
best
the present to attain
possible
tax
law
and
to
duction
would
be
our
substantive
tax
devision,
laws.
by
re¬
If,
elim-
Volume
Number 5616
185
.
The Commercial and Financial Chronicle
.
.
inating, >the ; myriad .provisions
which provide exceptional treat¬
ment for selected groups of tax¬
and in the process woe¬
fully complicate the law and make
its administration extremely dif¬
payers
through such revision
substantially broaden the
ficult— if
we
can
tax
base,
real
we
progress
begin to make
in providing an in¬
can
dividual income tax rate structure
begin at 10% or 15%
and top off at, say, 65% or 70%,
perhaps even lower.
I am sure
you will all agree that this is an
objective well worth our major
which might
Underwood Elects
-
Zaenglein'
tinger,
elected
tive
as
member
a
now
member
a
investment
known
Pa.
A
—
roll
Execu¬
Mr.
Zaenglein has been Execu¬
since March, 1956. Prior to that he
&
Chairman
of
the
later.^Vice-
Board
of
as
&
a
Corp.,
Insurance,.
Co.*
L.
SOUTH
Harold R.
Wojtar are with Merrill Lynch,
Pierce, Fenner & Beane, Board
of Trade Building.
Corp.,
Western
offices
firm
YARMOUTH, Mass.—
Baird is
securities
on
now
engaging
business
the' Advisory
Board
name
of
H.
R.
Baird
line., the
(Special to The Financial Chronicle)
Life
has become connected with Knee-
land & Co., Board of Trade Build¬
the
other
management
of
Edward
W.
Krasenics.
ing,
members
of
the
Midwest
Stock Exchange.
board
Wilde,
Dulles
serves
in
securities.
over-the-counter
members
The
Bertram
are
President of Jannev,
Battles, Inc., Philadel¬
&
thousands of
phia investment house, and James
President of Na¬
tional
Aeronautical
Corp., Fort
Washington, Fa., aviation elec¬
Riddle,
manufacturers.
is
a
also
growing businesses
Jr.,
tronics
director
Mr.
the world
Wilde
Vice-Pres¬
and
over
with...
ident of Boone
County Coal Corp.
Mr. Riddle has been a past Presi.
dent
&
of
Aviation
the
Distributors
Manufacturers Association
was
scientific
a
Air Force
consultant
and
the
to
during World War II.
Other members of the Advisory
of
Over-the-Counter
Se¬
...
Board
Typewriters
curities Fund, Inc., are: Edward J.
Royal —world's largest selling typewriter by far—
demand than ever... quality leader in
Caughlin, Seruor Partner of Ed¬
ward J. .Caughlin & Co., Philadel¬
phia investment firm, and Presi¬
dent
of American
Insulator
in greater
electrics, standards, portables — and
now
the auto¬
matic
Corp.;
Robert T. Sheen, President of Mil¬
up to
16 times
Robotyper multiplying output
ton
Roy Co., pump manufacturers;
Lloyd Christianson, President cf
Electronics Associates, Inc., analog
computer manufacturers;
Thomai
Graham,
President
Bord
Louisville investment
Joseph :T.„ Smith. Jr/,representative of Mon«-
Co.,
and
firm;
teehnical
Chemical
ranto
of
Bankers
...
Co., Philadelphia,
Data
McBee
Pa.
ment
Processing
Methods, Equipment
Keysort punched cards, machines, equip¬
supplies — used by organizations of all
and
sizes to
P & S Division
keep management's operating information
and control up to
Elects Officers
.
new
automatic
the minute
...
and coming
soon,
tabulating keypunch equipment
The .following
officers of the
Purchases and Sales-Tabulating
Division
of
tion
Stock
of
Wall
Street,
Associa¬
Exchange
Firms,
have been elected for the term of
one
year:
President:
Albert
J.
Eisenberg,
of Bache & Co.
First
Vice-President,
Raymond
Schibowski, of Hirsch & Co.
Second Vice-President: Carmine
Carmello,
&
of
Richard
*
Co.
J.
Buck
-
Treasurer:
Eastman
John E. Jacobs, of
Dillon, Union Securities
& Co.
Assistant Treasurer: Robert Ger-
ber, of Troster, Singer & Co.
...
Secretary: John H. Kirvin,
Clearing Corp.
Electronic
Assistant
Secretary:
Pyper, of Shields & Co.
Financial Secretary:
r
Allen Shaw Co., of San Marine,
office at 415
Lexington Ave., New York City.
Jean
R.
Veditz
formed
with
compu¬
Net Profit after
assembly and
Federal Taxes
tation,;1 with
Co.,
Inc.,
office
a
securities
h?s
storage of data... the new LGP-30
Computer, meeting the complex
is
134
North
with
$46,862,425
needs of smaller
as
well
as
largest companies—adding
business for
$ 6,398,823
3,322,976
3,213,324
$ 3,133,997
$ 3,185,499
half
a
Income
the
Income
on
Depreciation and Provision
for Federal Taxes
on
Income
a new
Royal McBee's tra¬
over
on
century
Earned per
*
Includes
from
an
Share
-
$1.93
Common Stock
non-recurring income
award in litigation.
equal
to
14
cents
per
common
$1.96*
share, resulting
(Subject to year-end adjustments and audit)
business.
Neb.—Carl
R.
Ellis, Holyoke &
13th
$52,808,554
Depreciation but before
Provision for Federal Taxes
Net Profit after
Services, etc,
con¬
With Ellis, Holyoke
LINCOLN,
mass
160
at
(Special to The Financial Chronicle)
see
high-speed
dition of service to the world of
Broadway, New York Citv, to
duct
1956
$ 6,456,973
Income from Sales of Products,
machines for
dimension to
Forms J. R. Veditz
been
1957
January 31st
Mobile, compact, economical
Howard
Allen Shaw in New York
an
Computers
Six Months Ended
Gerald
Sundheimer, of Sartorius & Co.
Calif., has opened
Summary of Results
of
Stock
Street.
Bra-
Co.,
ROYAL McBEE Corporation
General Offices, Port
.
branch at 913 Main Street under
a
of
investments
to
Co.
CHICAGO, 111.—Robert D. Kafka
-
only mutual fund devoted
exclusively
&
MANCHESTER, Conn.—-Shearson, Hammill & Co. have opened
nationally known companies.
Fund,
from
Studley Road under the
Kneeland Adds
Pacific
National
many
the
Shearson, Hammill Branch
Pacific
and
in
He
director of Jones
Lincoln
(Special to The Financial
Chronicle)
William
—
P.
in
Company.
111.
Dioner,
Jr.,
Alvin
B.
Epstein,
Lloyd I. Israels, Simon J. Morand,
III, Ralph W. Schott and Albert
Pay¬
partner
Form H. R. Baird Co.
well-
a
Over-the-Counter Securities
M.
the
Bond -Com¬
is
LaughlinSteel
Railroad,
member of the
^
Freres
serves
Finance
the
Calculating Machine
a
Hettinger
Lazard
also
and
of
Savings Defense
Mr.
President
Chairman
as
CHICAGO,
also
and
mittee of the State of New Jersey.
tive Vice-President of Underwood
was
American
Association,
With Merrill Lynch
(Special to The Financial Chronicle)
electronics executive have
joined
new
serves
was
-
prominent
and
banker
the
of
Institute,
j
Ordnance
Committee.
0 C S Fund Adds
■
M.
director,
a
Company. He is
ORELAND,
turers
the
of
Associar-
Management
Office Equipment Manufac¬
tion,
addition, Albert J. Het¬
Jr.,
Monroe
■efforts.
American
?
Directors of Underwood Corpo¬
ration
have
elected
William
G.
Board. In
(1015)
Chester, N. Y. Plants in Hartford, Conn./A thens, O./St. Louis, Mo./Ogden, Utah/ Toronto, Ont./Montreal, Que.
28
The Commercial and Financial Chronicle :.
(1016)
Continued
from first
sible
judgment.
We
think the
consistent with our modselling of stocks from accounts
good
with this pelicy 4 outlined
for
pension * and
profit-sharing trusts; they prefer
straight dollar-averaging and ad-
toward growth at some sacrifice
of immediate income. Among the
20 stocks, the one selling at the
program
est
Investing for Pension
And Profit-Sharing Trusts
other than retirement
I
that
know
trusts.*.,
of
some
my
;
friends do not agree
specifically
count at book value to be invested herence to a book value basis.
in common stocks. A new account
is to be invested in commons to 1
Common Stock Investment
the extent of its basic percentage
Having
expressed
a
policy
spect other choices of program within its first investment period, geared to common stocks, I am
and admire all favorable invest(2) The term "cash increment," going to do common stock investment results.
when applied to retirement trusts, ment the injustice of covering it
shall try to express
on how investors of retirement
trusts may live
with the existing situation. I repoint of view
one
.
'includes cash received from the
employer, income to be invested,
and net profits from security
governments; the Federal Reserve"transactions.Cash contributions
index of production; the inventory of employees may or may not be
situation*
too
high
distribution invested iri the same way as cash
costs* too low depreciation received from the employer, deshall
I
dwell
not
upon
• pur.
national product; the spend-
gross
ing of consumers, industries, and
facturing, in distribution, in agriculture
service
in
or
.
very briefly. That is what I did
with bond investment a year ago.
You know what has happened to
the bond market.
4
I did refer last year to a list
of 20 growth stocks put together
at the end of 1955 as a $100,000
_
eragmg
lines.
,
,
discuss
political
by
topped
(above 450 Dow Jones).
(4) As long as the market value
domestic
the
such
as
ex-
an
Taking
1957
list
the
as
.
,
.
outlook is now low, it naturally
follows that one's view of the
money market is. not clear, The
banking system is heavily loaned,
Bankers, uncertain , as to the
future deposit trend, are shooing
.
whole
a
.
.
of opportunities may he lahead. .
" If visibility as to the business
way
illustration of the principle that
the long view is better than the
short. .
.
/
I cannot leave this subject of
common stocks without reminding
y°u ofpersonal philosophy on
stocks, in a nutshell:
I
scene
conducive to good vbbrid* penformance.
Fortunately, our investment for
retirement trusts . permits* ^purchases ovet a period of time.-We*
cannot now he sure that the bond
market has hit bottomV but ive;do
.
changed at this time by
tlle basic percentage of each cash'10.1%, which compares with a
increment would be invested in 2.3% rise in the Dow-Jones Indusmovements
competition,
labor,common stocks. Where we have trials. Income, which would have
wages productivity measures for
discretion in our trust function, been but $2,500.27 in 1955, was
full employment, retirement bene- we have modified dollar-averag- actually $2,789.39 in 1956, arid is
fits debt and savings.
Nor am I inS as the stock market has risen n0w estimated as $2,903.93 for
to
pounded
issues was smaller in 1956 than in
1955, but for each of the other 19
it was higher.
*
On the whole, I think the list
a fairly representative one for
trustees who think as we do, using
such growth stocks in combina-
,
to be followed, market value became $110,059, up
program
of
beat the
Dow-Jones Industrial say that our bond* investments did
performance; and four actually well in l956? Very few, I think—
declined. Income from one of the if any. The money market Was not
speak of* all the
ramifications of commodity price
shall
Neither
up. Set your investment sights high, for each $20,000
biased faster than
as
«
■
*
designated
sive investment war in common
stocks: Watch your capital.' exf
posure.
Markets may* go down
original investment cornat
75%
seven
times
highest price per share, and yield- 'grows to more than $1,000,000. :
ing the least, rose the most, 67.5%
V*
1'
'
in 1956; another three were up
L
Bond:Investment
by more than 25%; a total of 14
How many of us here today can
I
forecaster,
tive. Excess diverification invites
carelessness. Nevef fight a defem-
market than with a 3 Vis %. bond
market.
The problem of stock selection,
so
vitally important, is demonstrated by my list; which was
page
.'Thursday, February 23,-1957
.
fVJ
^ 1
Management is by far the most borrowers -toward, the-.security
then, yield this year is indicated important determinant of business markets—out of the short-and into
percentage of commons in an account remains within five per- as only 2.90% when related to success. What others think of a the long-term field. At the same
tion, which'itself has the same centage points of the basic per- cost at Dec. 30, 1955, and 2.64% stock is important. The future is time, some enterprises find,capital
economic,
financial, social, and centage,, each cash increment is;in- when reiated to market values a more significant than the past, unavailable
or consider
it too
ecutive
of
a Congress
foreign situa-
party
one
of the other*
the
01*
scene031 aSpects aS the dome3tic
Suffice
but
it to say that these
s^e basic°pe?centage ° CX
year later. Needless to say, such The problems of specialty com- high-priced for public offering or
(5) If the market value per- a stock yield has a more difficult panies and regulated industries private placement of securities.
cen*age of commons drops 5 per- time competing with a.4'^% bond are great. All judgments are rela- These head into - the banks for
centa^ points below the basic
....
: V- ,
\
Perpentage,• such proportion of
- 4
■' '
'
3
TABLE II
/
are
part of the factors for con-
a
sideration
by
have
must
investor.
any
general
Wc
acquaintance
?ack cask cerement
with current basic data and trends
mnkintr
pnnhlA
fn
is
determine
to
will
into
'J'
that
ones
investment
Retirement
Itetirement
Tf
more
we
ones,
wc
of
,
directly to the matter of retirement trust investment
now
With
in
us,
centage
tional Bank of Boston,
range
the key to
1i« in
tho
? i '*
market
fnl
present investment lie3 in the toilowing,
taken. from
*.bOOk:
■
'■-J'
tinue
iinue
maks
maice
to
10
•
,
at
limited'
linuiea
the
chase to the
time
in
any
au-eaay
pommnn
in
common
level
wvei
to
the
15%*'of
•
to
of
'
in
use
use.
8,ooo Georgia Power
T
^
-
;
difiVrpnt
aiiiereni
•
•"
1.
1
f
V
25
$5,775
—
Union Carbide & Carbon
45
80
1955
$100,000 Investmenttiu Pont
.
Dow
40
Standard Oil
50
50 Kansas
.
City
50 Eastern
49
Continental Oil
40
Aluminium,
70
Corning Glass Works—
60
Eastman
100
General
'
—
Electric
International
Business
International
Paper
Minnesota Mining &
Machines1 *
Insurance
130
First
National
3.45
5.25
2.1635
2.34
2.50-
100
2.85
2.35
107%
1.8275
1.70
1.87
-
.3.00
1.74
.
—
5-73
,
&
4.52
$325.50'
sx
10.
11.
ex-div.
.
Amount
—16.67/
.
1956
♦
-
.
•
13.
12.
Yield
on
Cost:
1057.
Estimated
on
2.81%
14.
1957Yd.cn*
Den. 31, *56
Amt.: 12./8.
$4,819
2.81%
3.37%
115%
5.209
5.1
141.75
2.86
162.06
3.27
3.11
5,477
13.2
92.43
1.91
97.92
2.02
1.79
$162.50
4.32
3.74
2.84
2.02
156.80
3.20
2.53
1.86
81.60
1.30
105.00
2.18
1C5.00
159.00
3.27
166.95
200.00
3.46
200.00
67.5
15.5
252. CO
4.13
264.00
40.6
125.00
2.70
131.25
49
126 V2
6.198
26.5
149.45
3.05
40
120
4,800
11.6
79.90
4.883
1.5
5.528
13.7
.6,025
4.3
70
63
57%
1.60
2.77
2.00
3.46
100
'
15
'
69:%
873t
60%
4.836
403
3.9024
.97
4.00
.99
113%
2.8929
2.54
3.00
2.64
45.32
112
1.65
1.47
1.80
1.61
80
2.3895
2.91
2;50
3.04
.9901
2.75
1.15
3.19
1.84
540
,
105
.
1.759
1.70
2-18.
2.15
3.44
3.02
3.46
-
3.32
57.00
.1.18
60.00
1.24
.74
4.9
132.99
2.66
135.96
2.72
2.85
87.75
1.74
90.00
1.79
t.49:
1.2
165.00
3.34
165.00
3.34
3.30
—19.7
135.00
2.78
135.35
2.81
3.49
90.00
1.84
90.00
1.84
2.21
—
6.041
^
83%
4.9P5 '
136.35
28%
3.903
4,08)
—16.6
-
,
19.9
8.100
67 Ms
60
Cost:
12./Cost-
Income
10./Cost
$162.59
1957 Yield
.
1.66
3.00
30
,136
2.50
2.29
2.50
2.29.
54
95
5.130
4.6
129.37
2.64
135.00
-
4.875
37%
1.025
2.73
1.20
3.20
130
47%
6.224
27.7
153.60
3.25
166.40
3.41
2.67
4.875
37 M2
1.16
3.09
1.28
3.41
130
40%
5,216
7.0
171.60
3.52
187.20
.3.84
? .3.59
4,829
64%
3.31
2.60
68 M4
5,119
6.C
195.00
4.04
4.35
4.10
2.90%
2^64 %
America
1
Light
City .Bank—
,
2.45
■'
*
,
'
*
•
List,
List
Aluminium, btd. dividend used is after 15%
4.04
"
f
$99,999
ove
r
*
_
*
V2,SPO.?7
..
.
.
,
*
r
75
*
•,
$110,C59
.
'2.5Q%
,
a
2.69%
.
-
-
2.70%
.
210.00
2.63
$2,903,93
*
Canadian'ta.^—noj, recoverable by
.
2.73
10.1 Mr
$2,789.39
$2,694.93
'
,
Performance for 1956
6.503
3.27
109
,
-
of North
»
5.0L
165
"sTe^oo
7,050
2.18
,
4.97%
$217.50
3,650
Totals
'58%
1.50
4.905
36 1/2
123%
2.65
.■
-
' Atw#x.
195?
mi
52.5
2.65
2.70
indicated-
-
67 Vh
2.18
1
,
192%
2.1429
.
'
'
*
Approx.
Income:
.
v
1.50
36
,/
;
225; *
1956
*
82 ft
■
.
1956
218
Increase
25
45
68-Ti
163
31,
3,925
1956
"*120
—2.70—
...
'
U.S. bills due 1/31/57,.
4,350
9.
81.6
81
iove
-
.*
3.44
3-00
4.890
.
Texas Utilities
*55
5.2674
92%
4,860
45
Co.
152%
4,935
Roebuck
Hartford Fire Insurance
Power
6:105
„
1.65
5.040
Mfg.
Pittsburgh Plate Glass
Florida
1,00
5,005
30
130
2.72
1.62
5,775
.,
45
Sears
3.00
.9804
'
12
60
.3,03%
2.72
60 Mt
4,860
44
135
$7.00
110'/8
•
t
4.04%;
corrent-Yiew
$4,375
Percent
1956
-
^
_
4,813
Kodak
convertible preferred—
Close
3.03%
,
$7,795.20
21 3/4
Dec. 31,
6.
4./1.
•
4.60
-
78 1'2
-
Dec. 31,
1956
Dividend
5.6*
4.00-
.
.400
87 1/2
n.-
preferred
8.
Dec. 31,
Estimated
2./L
4,300
Ltd.*
4V2%
7.
Yield:
Yield:
Paid
4.26
4.15
I
Shares at
4,900
—
Associates
1956
4.625
(N. J.»
Fuel
Bought December 30, 1955
195C
Dividend
*
310
330
_
Dec.:u,ior»<;Market
& Light 4.35 ^
preferred
Electric 4.36%
preferred-—
&
&
;5-,.*
1955
,A
340
.
on
December
Power
Gas
4.
Close
,
,
—
■
1955
350
'
,
S5' premlum pald on PIGB' 375s-
.
100 Sunray Mid-Continent Oil 5V'2%
—
"
1
'
:
4.21
,.
'
.
4.71
350
$193,155
At
iob"Pacific Gas
'
4,956
Gulf OH
Totals
...
.
4.02
-.
330
8,360
-
.
ab.ot
...
3.00
■
3.97,-.
4.27--^,.
350
.•
;.'i.
4.33'
9/3/57 so includes 3202.50 interest on Feci. Int. Cred. Bank 3.75 due 9/3/57
•
3.
$7.00
104 1/2
v
.
4.840
Chemical—
t
lilt.:.
-
270
6.680
8.030
share,,
1955
231
v
Specimen Preferred Stocks
/
Dec. 30,
Dec. 30,
Shares
.
1/73
1/
8,160
8,030
831/2
100 3/8
^
,vJSf £"J£S!2lZ,tZ£
subsequent years »«*..
.
Cost
ico3/8
-
.260.
8.240
4.50^
" Forward commitment payable
Investment
2.
8/15/381/ i/ei
8/1/70
10/23/59
7,300
8,130 ;,
.
at maturity.
commitment payable 2/1/57 so income Includes $18.08 discount
TABLE
"T
.
at
iso.
s.oio
5
>
fromL the position that a trustee
must always exercise the best pos-
Stock
1001/2
103
102
911/4
_____
sound prettv
Growth
11/.1/76.
12/ 1/91
43a
m
3./0
if ""'
:
' 350-
/
7.240
4:,4
.
t ForWard
$100,000
M30
901/2
*
3.77
280
260
s.oeo
101 5/8
8,000 Baltimore & Ohio
—37«
8,000 ChcsapeaKe & Ohio equipment—4'h
$200,000
■,^8IZ
(1) Basic percentage defines the
proportion of the particular ac-
827-s
1003/4
*
5.06§
:
-
S''
.:
complicated, but it really is not.
We think
we
shall: buy fewer
Seven points are to be made in stocks
higher and more stocks
'explanation of this policy.
For lower- than by straight dollarillustrative purposes, reference is averaein«
In anv pvnnt
wa
re
made to our most typical accounts,
u
thnv?e''With a am A>.
right to Change, our
rnose Wim a ^fl^^ha^r^n^rrAhtv^TYf. the
oasic pe cent
indg
We ' refuse- '•' tn " ahriiratA*
nanus..
we.
ieiuse
IO
apaicaie
'
7.240
11/1/73
8,000 Great Northern
•
901/2
11/ 1/86
4*8
4.00
320
12/1/78
Natural
3.95- '
320
'S
•
4.11.
4.46
*
403.03?
;
.
4.60 *■
<.
96 3/8
.
' 3.45
,
8,000
3l/.».
4%
Electee & Gas:
Gas-^r
8,000'Tennessee Ga$ Transmission^---,——
8,000 Michigan Bell Telephone
—2—
giftOO pacific Telephone Ac Telegraph_l„__
a.ooo Atlantic coast Line equipment^—,.
^
f
8.010
3.61
.
8.000
7.710
3a»
—;
Service
8.000 Northern
propuaie.
.
1
100
5/15/71
,8,000 Public
,
4fiin
may
..
ICO
12/.1/86
^ Assumes reinvestment
Now, all this
100 1 8
7/ 1/58
'i/ \m
then
the
1/ 1/60
1/ 1/77
—
2
4/1/70
5/ 1/76
3v*
oronriotp
scocks
■
8.000 Piorida Power & Light__^__i_____
ihcremeiit*Twhen'
somewhat
somewnai
*
290
270
,
>
'
4.15% t %*>■
350
7,440
7,560
tooo
40%
increment
when
'
siW, -I
41% to 45%
the
7,920*
J'SS £S^-STJSS2fri5;""-~—i'"
the
in
99
93
94 1
6/15/71
11/1/78
9/ 1/62
200
,
*
Yield-
<
260
__/.5M*
3,000 General Motors
it
-
*
-
is
36%
7,730
4
______
8,000 James- Taicott, inc.8,000'General Electric
graduated scales.
(7) Exceptions from the general
policy may be made where" ap-
pur-
and to tne ratio Of current and an-
ticipated increments
existing account."
in
7,110
96 20/32
4
8,000 C. I. T. Financial
8,000 General Motors Acceptance.
when market value per-
is
y IIWIKCC IS -,11V, xne10. pu/crange, and none if market is above
50%. Accounts based at another
proportion of market
filrPflHv
is
as
88 28 '32
6/15/83-78
3%
3%
—
Anprox.
$331.12t
6/15/69-64
4M,
______—
•____
v
Income
$7,935
3M,
1
siooo Associates Investment
in
ourchaises
purcnases
of
scale
Amount
2%
—
8,000 Ontario
con-
stocks, giving consid-
common
eration
.
trusts
COmniOliS
graduated
a
range,
6%
market
'
.
recommendedir that,
is
retirement
vuliip
value
'
.
general,
of
minutg
our
%
.
"It
)
.
on
commons
Trust Company and The First Nanracont
the
oercenta^e
accounts, we have chosen to put
24% o£ each cash increment into
Colony
Old
8,000 U.S.A. Treasury
,
;
*
,
Abejut
4/57
4/
-
*
■
indicated
,
99.186
•
Bills
Treasury
"
Dp^mbfr
Pnrphasp
for
r,sue
U.S.A.
S-.OOO U.S.A. Treasury
8,ooo Australia —.i—-—
imml percentage, tne
Of each
cash mere-
-
.
Va,ue
$8,000
becomes
commons
*
Rond«
Specimen Bonds for Purchase—December 31, 19ob
Dec. si, i»sc Market
At
Approx.
•
Face
f
*
than five percentage points
reduced
policy.
.
xeuucea on a graauaten scaie as
the gap Widens. In our 30% basfed
Policy
I turn
L-
snpcimpn
.
*
tne market value per-
ment to be invested in
fnvddment
investment
Trust
irust
+h
11
auvve uie.
proportion
success.
;
the
i
certage
extent
wise
wise
is ..invested-.
restore the
will
as
value percentage to
„
pos-
are
are
achieve
shall
.
which
the
To
decision6
decisions
our
our
,
translated
be
DFobflhilitiPS
commons
market
Our
wur
possible
sibilities
1111
hp
n^sib^ aheri^tives
alternatives,
tween
iween
task
dpri«?inn«5
L
pensioh*trus.t.
4t/4-
,
;
Number 5616 :.
185
Volume
The Commercial and Financial Chronicle
.
>
i
,
.i
•
*
,
C
»
(1017)
,
*
'
'
N
»
1
,
"temporary'-'<accommodations. The maturities are most appealing on some stock investments whose Fellers and Jack Wiggin, general
result is ai veritable rationing of today's yield curves? Are callable yields on book value will climb partners in Merrill Lynch:; Pierce,
available credit,
•
;
features yet sufficiently attrac- to 6%, 8%, and even more. If our Fenner & Beane, will become lim-
|L
{ with
suitable. Which convertibles are our selections^are sound, both Inbargains. Are capitalization ratios come and principal performance
up because^ it»is in shortsupply, adequate?
'; v. '
;
;
V ,; wili wel1 reward our efforts. •
Meanwhile, working ..capital reOn the answers:to these ques-:^^ •*." ^
c*
"ii "
qUirementsof * industry; remain tions opinions will differ widely.
lNew York Mock Lxchange
high/FUil employment keeps con-: They are, however, >a few offhe^-Weelclv Firm
hnciWdmpn
things aWrmt whiVh Wp miisf v ¥T CCIVIJ
* " *« WWUgCS
_
.
.
rrtonv
penditures as matters of;necessity
rather than choice^ ap increasing
defense ^ undertaking r is .5; jomUy
shbulderedtby ^industry iand the
ments.
.
.
The.biggest > question of all forChanges:
business
Samuel
remain sufficiently active to " ^oked
"
'
COLtJMB.US, Ga. — Effective
March 1 the firm name of Cabell
Hopkins &Co., Inc., Fourth Nar
tional Bank Building' members of
V
' o
uundi ndiiK jounaing, members oi
W lth ^
Kodman & Kenshaw
the - New " York
and :.. Richmdnd
on
....
ut*
about which we mUst v
making bond invest- ? The New Tfork Stock Exchange
"V ■/:" / "V "tj, v •:
w-y»haB: announced the following firm
spending hi^i; businessmen many things
thiiik of"plant and equipment.e*'-think when
suraer
''
^
ilOfB. Being FnritlOll
».vr■■'.Jv.'Pi;!:J
.
Beane;1' Johii. J. - Gurian, -Edward
A. Pierce and Richard A. Woods,
general partners, will become
general and limited partners/'
in the economy^ Its price is
factor
'"A'
.
Are' sinking fund terms. sights are set sufficiently^high and ited partners, ^and Alpheus
men -and
materialsr^has-become'a limiting
,
PlfSI .o00lH63Sl6rB
'
.
-•-JVIotley; *;along
29
,
I
>
,
»
t
(Special to Tin; PiKANciAt
stock
CHICAGO^ 111.—Harry B. Ham-
Exchanges, Sviil be changed
:
,+n pirct Cniitiiahotom
1957 ,is perhaps whether
w|n
-
- —•
...
;
vork-
n
n'/
tiv
^
-'M>TV»iicrai kqc
W''?
Hanson
n
^i,'
been conducting his.
Federal:
Govemmenty -and * our keep money tight and bond port-'/ James P.Magill, general partner
Mr
w«K
-cnanges.^jvir. ii;amnion was tor- own investment business in Co-^ \'
PobhA
Pn
growing tax burden is testimony : folios. depressed,. while
making -'J** Eastman. Dillon, Union SecurL -=mei;iv litith -Raphii-J^'rn • or»/l nrinr
and
—v
>ey-.»
to:- ther great-r spending? .at^ull bond purchases increasingly" at- ties & Co.; will become a hmited
increasingly
Iumbus-" rU
-rir 1
•
: :
win, c
government levels. /,
tractive,
particularly as? against' partner ^effective March l: .
effective
:; v: i
as; against
rr—
man
Harris & Pn
— v.;
•
4lV.
,«>
•..
- .• ^
^
..
.
■-1-" V*'
stocks; or whether business may • 'S-Cliffton Mabon,general part-.
.7'V'■,->>Join* ■'■Straii® RUtari
»on
Inflation- Ahead... ; . .. :
soften ' to
the - point^ of
easing'ner
Mabon & Co.; will become
j
f > ny
^k V
1
.
There is certainly the real
tainly
Ques-/moriey and impfoving bond prices, '^ limited partner- effective March
■
thf jpinanciai chronicle)V - ;
tion whether we are headed for whiie
squeezing profit margins 'J 'at which time Mabon Kingsley, :*
^special to the financial chronicle> .
,,_ r CHICAGO, 111.—Norman B.
*
.
.
__o,
-w——T%-"—
—
mnh
-
V
rvriAt*
•
^r-;
?«5nv
TW^.
,
™P\Harriff c°-
.^
Oirau$# I5I08SCr
(Special to
.
-,Vf*.(W. Lh^nuerlain^
.
a
price level and. infla-
runaway
tion
for
.or
inventory problems
further. Possibly
to the an-
cue
a
will come from the action of cease to. be a general partner, but Skogland has re joined-.the staff ^'Blosser. & McDowell, 39 South Lh
Swer
wi^ continue
lies.in pur productivity—not
swer
productivity of labor, alone/
but.the joint and interdependent
productivity of labor, and capital.
the,
Have
riave
the collective fortitude
ine_ coiieetiye, iprntuaq
we
we.
challenge; put on the
to meet the
brakes; and ease the men, money,
?!»? material shortages. Perhaps
1957 will bring the answer.
In
the
would
perspective
have
I
place?," \ I
much in
eral
"What
their
pretty
myself
recent Fed-
with
accord
•
in
done
find
Reserve
of
its
responsibilities as a force for stabilization
an
agency
to
lean
policy. Alert
the wind, the Fed
against
Ipf+incJ
letting
tn.h^
to be
to
t hp
the
law
law
and demand take its
cnnnlv
supply
nf
of
After
all, might it hot be preferable to
have one man unemployed at the
■
end of 1957 out of each
in
the
labor
out
of
jobs
one,
two, or
should
each
have
Effective
r
,Other Investments
except
to
acknowledge
tbejr merit when rates are attrac-
speak
For
five.
offerings
recent
most
that has not seemed the case. One
mUst
also
fans
in
jf
recognize possible pitareas, particularly
these
operates
trustee
a
lines..
"
5%
"
stocks, approaching
basis
f
some
1957
of
pace
really to be feared? I would
the snaffle now
rather than the curb bit later; to
take
apply
have
names
more
Preuy gOOQ lldmes, HdVC II1U1 e
appeal now than a year ago. I am
tempted
to
nibble
at
certain
utility
preferreds and
a
few
others, including some with im¬
proving characteristics
or
con-
/
the
view
long
rather
than
will
better
both
convinced that this
am
the interests: of
serve
labor
.HIGHLIGHTS.
and
capital;
f
v,/
.
-The .situation
.
the
of
A
Investment
shall
I
not
f
'
is not enviable undor-eurrent
con,-
$125,116,269,
a
j
'
^
reductiori.^would
$.49 per common
•
as
against $.76
a
share the previous year.
;
•
At
steel
$.07
were
$.14
•
time, during and after the
a
strike.
share.
a
doubled—to
First
Second
earnings
quarter
the
the third
quarter of 1956 were above those for the
previous
ing the form field.
•
period. However, the Wisconsin Motor strike,
starting in the first week of the third quarter and
for the
long-term
money;
<
-
keeping
con-
fernment bonds remain the srtrong-
security in the world,
good
backlog fot the fixed-income side
of any investment list. .Can we
expect a stabilized / corporate or
tax-exempt bond market before
-Federal
a
Government issues
have
stabilized?
-
•
«-
,
corporation
and
as a
whole.
^
•
convertible
As
a
any other make, in the
displayed at this year's boat shows.
MA-1, will shortly be in production
CAE's Toledo plant,
is
Toledo
efficiency
today
easier for
find their
What
th<=»
the
answers.
are
tudes of
bond
buyer
questions
ask
to
the
the
than to
For example:
aggregate
magni-
supply and demand? Are
huvprc
buyers who
who
nontiniip
continue to fakp
to take
yields better
.bonds at 4% to 4^%
judges of the situation than those
now insisting on 5% t« 5%? To
.what
take
will
.reluctance to
keep
the
largely
extent
losses
.nominal price level of old bonds
above
that
of
new
Will
issues?
bring
oversupply of tax-exempts
1957
estimated
•
million
come
common
subnormal
of
a
on
stock
immediate
characteristics
but
.
spread
may
actual
and
top-grade
What
aging,
corporates?
*
benefit
of
net
23,073,000
$182,061,693
$298,438,605
$264,219,009
list,
$2,502,287
$4,542,748
$6,023,812
$6,126,021
$0.76
$1.38
$1.83
$1.85
$0.25
$0.70
$0.80
$0.80
$0.60
$59,262,735
earnings
earnings per common shore
shore
$58,115,700
$67,362,396
$104,895,088
$106,074,697
•-
.
$28,304,638
$27,553,219
$35,667,076
$72,618,572
-$76,692,367
$30,958,097
$30,562,481
$31,695,320
$32,276,516
$29,382,330
working capital
Ratio of current assets
to current
2.1 to 1
2.1 to 1
1.9 to 1
1.4 to 1
1.4 to 1
$2,760,000
liabilities
$3,040,000
$3,320,000
$3,600,000
$3,880,000
ffpiffiPpJPw/
Long-term debt
Property, plants and equipment (net)
$16,547,581
$17,219,239
$16,654,419
$14,085,545
$13,573,156
1
Stockholders' equity
$45,129,523
$44,349,599
$44,157,312
$42,254,564
$38,870,752
$13.68
$13.44
$13.38
$12.80
$11.78
/
v„.xy
Book volue per common
shore
TPl
t*T0kt
in-
of both
dollar-averaging.
In
with such averexped
—
$0.49
$1,604,924
Net
Net
the,
practice,
we -may
21,390,000
'14,659,577
expecta-^-,
tions of long-term growth
be expected in
governments
the. future :between
1952
1953
1954
$145,465,155
Continental Motors Corporation
MUSKEGON,
much
pf unfilled orders amount¬
Jan. 1, 1957,.
Current liabilities
accumulation
"loaded"
with
on
Net
bond list. Then, too, we have used
a
/
13,876,317
10,783,043
$125,116,269
Net sales
well, however, that this is current
discount
.
Continental Motors and its consolidated sub¬
ing to $80
1955
1956
Engine output (horsepower)
of
benefit
\
Ended Oct. 31
Dividends per
gether
from selections
year-ends, looks as though
composite current return this year
...in
o ci ci
win
approximate
3.61%.
Note
without
v
.STATISTICS.
(see Table I), the account,
yield,
--.V
sidiaries had a backlog
supplier of engines to leading manu¬
Current assets
yield
Higher
virtually -complete,
now
-wiltxresult.
'
It is
under Air Force contract.
of turbine production departments
move
highway building pro¬
»fiscal Years
included
stocks
business in sight for 1957 is
past, there are more Gray
years
The Continental MA-1A starter unit, improved
CAE's
combined.
approved by Congress last summer, calling
$l6o billion in new roads over the next 13
years.
with
Finally, then,
common
at
compared with $.21 for the first
Biggest source of
for
yield for the group is 5.06%.
Questions to Answer
as
gram
The
issue.
share,
to
«
stock specia coal,
oil
a.
some
engines than
version of the
quarter consolidated earnings rose to
related to the mammoth
include two utilities,
a
Fourth
three quarter*
..
four preferred
xhe
mens
•
$.28
8%; and railroad, 16% (of which
one-half .are equipment trusts).
Maturities are 24%
within 10
years, 40% from 10 to 20 years,
and 36% over 20 years. Quality
averages nearer Aa than A, with
32% Aaa, 12% Aa, 44% A, 4% Ba,
and 8% unrated. Current yield
of the. bond list is estimated at
4.04% for 1957.
«tantly before such buyers as pen"sion trusts the opportunity to take
down long, bonds. After- all, govest
.
As for
Marine
inboard craft
lasting into the fourth, resulted in a $9,260 deficit
^
the
plants for manufacturing customers serv¬
"
V *
v /•
power
12%; natural gas, 8%; telephone,
-
in rural income evident late in 1956,
prolonged slide, is among th6 more hope¬
for the new fiscal year. It will be felt in
sales of irrigation engines, as well as of
a
ful signs
share.
a
company's products and profits.;
The upturn
after
earnings
quarter
Continental Motors' own earnings in
-•
sion trust invested roughly 60%
bonds, 5% in preferreds, and
in .commons.
schedules for
nationwide
to
bave
is
staffed and equipped to make major contri¬
butions to the
Curtailment of steel to Continental's manufac¬
ery
Research and Development Division in Detroit
now
turing customers resulted in slowed engine deliv¬
four units of preferreds., ]
Dec.
31,
1956 markets the
of
a
-use
competitive, rate; to" get ' for
-
Net earnings for the year were
share
(see Table II). In summary, let me say" that it consists
of 25 units of $8,000 each of bonds ]
and
Military Division will continue to produce at
profitable volume through 1957, subject of course
unforeseen changes in the defense policy.
'
.
,
rgovernment its share of available
;
compared with $145,465,155
•
pare one,
:shprt;. I believe, however, that
higher interest ^charge on the
debt
f
as
from this source.
ness
to
•
The specimen bonds of this, list, j
based on face values, include:
debt
is preferable - to ^runaway United States Government, 12% ;
commodity;pnees. Were1!"in-the foreign government and provinTreasures-shoes, I wpuld-fight for cial, 8%;: finance company, 16%;
adequate taxes; tp- eeable some industrial, 20%;,'power and light,
is
1955.
in
preferred stock list for
current investment, but I did pre-
ditions. Much of the Federal debt
.
and
and
bond
values were $193,155. in bonds,
$16,300 in preferreds. In combination with values of the same date
for my growth stock list of a year
:ago*' we now have a $319,514 peh-
-
Motor Corporation
building machinery and related
equipment, Continental expects substantial busi¬
Corporation and consolidated
•
specific
a
facturers of road
1956,
October 31,
Gray Marine Motor Company, had net sales of
/
detail
ended
year
Wisconsin
subsidiaries,
Specific Fixed-Income
Tempo-
Treasury
fiscal
Continental Motors
i-arily unfavorable to the bond
market, it would better protect
the 1 long-term .'.position
of
all
bonds.
the
In
•
...j,;.
'
the short. I
ANNUAL REPORT
ie]d
tt
1956
THE
FROM
state
across
•;
Preferred
(h
collapse? In short, is an
Orthodox rise of money rates that
might temper the business
Co., 315 ;Salle Street^ members of the New *
.:•/;f'<*p;:7pjyork«'gnd Midwest Stock Exchgs.
.
the
on
j; :Henry East Avenue.
Mortgagesand real estate under i
^
"
jease are specialized fixed-return ,
jnvestments of which I shall not f
lose their
three years later,
bubble
of L.>W. Chamberlain
limited partner,
a
?
-
boom
prfefer to
as
March" 1,*
1,000
further
a
1,000 now
than to
force,
live
employment figures,
; • :
seems
course.
Lib-
RED WING,.-Minn.—Reuben A. 'man has joined the staff of Straus,
general and limited partner, will
MICHIGAN
.
30
The Commercial and Financial Chronicle
(1018)
which
Continued from page
3
the
promptly
initial
after
shortly
or
distribution
the
of
se-
curities,
in Federal
Current Developments
hundreds
ital
to
oJ^a^iQpedj^J^ter
irom
We believe it is time that
tion.
issuers, underwriters, brokers and
dealers, and lawyers interested in
of
the
the
vestment analysts might ask why
it is appropriate for a member of
a Federal law enforcement agency
retained to "lecture" to them about "boiler
Much
industry.
financial
policy
pressed
the
Congress
ex-
registration
the
in
re-examine
markets
of
and
the
history
of
been
deemed
"sale"
a
investments in the cap¬
American peo¬
through
ple.
Values
Increase in Majrket
market
T.
cLl
1
aii
all
nn
stock
all
which
on
vilnp
of
pxt hant?e<?
exchanges,
ctnrk
stock
exceeded $100 billion
never
before 1946, except briefly in 1929,
$111 billion at Dec.
increased from
to over $250 billion at
30,
1956.
The Dow Jones
1950,
31,
June
prices
Industrial average of stock
the New York Stock Exchange
on
reached
all-time high of 521.05
an
April 6, 1956, and close on Feb.
of 466.84 is considerable when
on
19
remember
you
1933
years
to
through
broke
product
billion annual rate figure
the $400
1956
in
ex¬
The value of the gross
ceeded 220.
national
the
that during
1949 it never
with
compared
as
$340
order to "free up" large blocks of
stock of the surviving corporation
for
distribution
to
without registration.
of
value
dollar
securities
York
provisions.
.
vesting
public
foolish
when
..
~pneral
in_
been gullible and
the high
pressure
dis¬
the long
salesman calls up on
resent
promises of speculative profit,
out
but
which
stances in
men
in-
of skill and
have
finance
in
experience
occasional
had
have
we
be¬
victim
of
these "boiler room" high pressure
unwitting
the
come
and
of
called
recently
city
office
a
up
great
expressed
/-«
Commission
the
of
in
occurred
also
the
over-
market.
the-counter
The work of the Commission in
that
a
had
the
investors' confiintegrity of the cap-
sustaining
dence in the
markets
ital
into
which
conditions
count
take
if
must
ac-
per-
_/?
happened to buy it, he stated that
a
man he had
never heard of or
called him up from a
before
met
brokerage firm in New York City,
he had never heard and
Gf which
jn
had
he
offices
whose
never
result,
story
gave.him a wonderful
about what a fine invest-
ultimately, in the destruction of
investor confidence
and
the
ment
it
stock
mitted
exist
to
thwarting
Congressional
the
of
only
can
been, and
$40,000
in
objectives set forth in the.Federal"fundf,;
IT*
f FPP
{securities laws.
Our free (l!1 ipr
enter- In my
in
Of
was.
he
S65.0Qd--of
the
placed
purchased,
wor*>
'Thft
f+1
w*ir
,daY JlB.
QdH
Wochlnortni*i
in
oo
prise system will be damaged if
office in Washington and
apologized for his criticism, be-
these conditions grow and are not
cause
A few of these prob¬
lems with which the Commission
stamped out.
has been faced and
cope
with them
your
efforts to
our
deserving of
consideration.
are
aUURctfcC
has;.
-
Dealers
many
new
brokers* and dealers.Ja,.,the securities*
business, somiL.Pi_whom are
inexperienced and unfamiliar with
the obligatlbhs"owed to their cus¬
tomers,-some "pf "whom have been
drawn
into
the
business
in
the
hop^of_a g.uick.DJCQflt rather than
the establishment of
sound busi¬
a
the
action
the facts
of
as
the
to
com¬
actual financial condition
in proceedings under Section
A-P
i hfn
A of .fVjaf Y»All1fl
19(a)(2) of the Act that could be
afforded present and {prospective
investors in the particular stock,
pany's
First, the activity in the capital
markets
that
Commission in the
case
had one, and only one, objective,. namely the best possible
protection pending the develop¬
the
by
ment
Influx of Brokers and
realized
he
taken
This
was
unusual
an
case,
and
I
highlight the danger
to
unsophisticated
investors
of
these high pressure, selling tech¬
by boiler rooms in
New York City and in Caanda.
I am happy to say that, as a result
niques
used
of
pies of trade, and some of whom
are downright dishonest.
A num¬
several years, some
ber
of
brokers
new
and
thus
getting
into
culties which
of
threaten
customers'
entrusted
funds
the
or
salety
securities
them
to
But Not
-Claimed
Available
Another problem
then,
the
public
Again,
be-
merits
to i
of
wiselv
very
which has
registration
under
the
in
my
passing
on
the
securities
the
t
and
left
responsibility for
their own investment judgments,
The
registration
provision
is
broad, but the Congress provided
n v e s
certain
o r s
exemptions.
offering
made
The
non-
exemption
was
the Congress
available
offering
an
small group of people would
be likely to be made under cira
_-J.
>-
J—
cumstances in which all of the
offerees would already have
available or be able to obtain the
basic
financial
would
data
and
hence
the protection of
not need
vestigations
of
irregularities
by
in
of
violation
been
have
the
sold
registration,
dealer -revocation, and injunctive
i
4- V"k
I
I*
m!
actions in the Federal Courts and
Commission be notified of trans-
y\
are
rt
referring
in
A«>A
more cases
/\1
1
m
ft
in which
violations have been wilful to the
law
the
who
persons
presum-
mnmlx
thumb
the .amount
thus
which
than
K/iin/*
no
construes
more
But
1'
_
__
actions
jl
_
made
being
as
*
_
_
a
1-2
a
*a
a
a
reliance
information
been
which
required in
statement made
r
offerees
would
have
AppAri
successful
n e-f
But
we
find, months
of
have been made
never
the .< issuer.
e
l\
as
,
.
program at the Commission
to
cope with these problems has
again been in the strengthening of
our enforcement activity.
We are
let
Proposals
turn
me
to
proposed
legislation which was not origi-"
nally sponsored by the Commission but the broad principles of
which
basis
have
we
endorsed
of studies
and
year
it seems
ticular
made
half.
a
to
in
This
to
oast
legislation,
should
us,
interest
the
on
the
be
of
par¬
financial
analysts.
In
May, 1955, at the conclusionstock
market
study of the
Committee
on
Banking
Currency, Senator J. W. Ful-,
bright, Chairman of the Commit¬
tee,
introduced
the reporting,
bill
a
to
extend
and insider-
proxy
—
conducting more intensive investigations and more disciplinary pro¬
ceedings within the Commission
and legal proceedings in the Federal
Courts
than
at
time
any
We
in
are
total
a
staff
tionwide,
Injaflipr
means
by the number
course,
800
of
in
the
and
in
perspns,
present
the
in
is included
fiscal
1958.
the
upon
fiscal
persons
must
trading provisions of the Securi-'
ties
Exchange Act to additional
corporations not presently
subject
to the Act.
In the final report of
the Committee, a majority had.
expressed the view that "as a
general policy, it is in the public
public to
depend,
good
use
the pros-
to
comply
with
the
companies whose stocks
are listed
national securities exchanges."
on
A minority of the Committee
rec-
ommended further study of the
over-the-counter markets, with
the objective of developing spe~
cific legislation if needed.2
port the facts to the Commission,
mittee
Ke-introduced
Also,
we proposed to the Conin the last session, and will
propose
to the new
Congress, amendments of the basic
statutes
designed to strenghten
jurisdictional
rect
provisions, corinadequacies, facili-
certain
•
_
tate
i
•
J
.
.
criminal
«
prosecutions,
generally
strengthen
mission's
enforcement
the
and
Com-
capabili-
embazzlement
monpv
or
securities
trusted
to
the
of,
of.
care
inai
liability
to
false
1955,
or
the
Securities
on
changes
Commission
again-soon
the
August,
some
Re-Introduced
gress
In
Subcom-
reported
suggested
and
by
certain
the
other
changes, including a provision exempting securities of regulated
insurance
companies
from
the
the bill.
coverage of
As revised,
the hill would apply to corporations having 750 or more stockholders, or debt securities of $1
i 11 *5
m
aa
r\\*
million
hands
lion
m A*»n
Ait
or more
of
+ pf
fUA
m
outstanding in the
public, and $2 mil¬
the
of assets.
*
.
During
4
the
following
*
winter
of and spring, the Commission made
en-
a
complete
factual
study
retris-
a
a
revised Committee Print adopting
Congressional Proposals to Be
PecliY£JUY£stor.
The
required
statutory provisions and the
same
rules "and
regulations
as
words,-ties.- These proposals, if enacted.
conceaime^ol' the
Jfflrtfi .which Con-
ije-giveiv xo
be
judgment and good sense, and, if
they have been victimised, to re-
^ie,SS _S.P^Cl^Le<^ ln th? SC£ur^*es tered brokpr-dealpr: extend
Act
ghpluo.
for
request
a
We
na-
President's
appropriation for 950
an
^rivaf-e. °^-e*rln& ^af been used would prohibit
oi
financial
crim-
soliciting practices of the
statements
tions
reporting
which
would
of
and
be
the
proxy
corpora-r
subject
to
in^documents filed with the Com- the bill which number about 1,200
intra-state_jexemptkm
yjded by the Act
mission
nro-
intended bv
was
the Congress to make "possible
in
connection
exempted
with
securities
small
offerings:
and
have estimated assets of
than $35 billion.
more
Review of proxy
an
enact the anti-fraud provisions of
soliciting materials of these
offering of securities to persons
residing within a single state. The
the Commission's rules under the
Securities Exchange Act in statu-
porations showed that in very few
t.ory
ished
to
the
skv
But
we
left
have
seen
states
their
regulation.
many
securities
a
whiclTpurport to be made to resiot
a
single
'unToTftr cxt
of the
some
channels
Street
of
trade
within
western
here
weeks
.
,
We
£
or
are
the
also
i(
No
v*
4Av>v\v«/v4-i
~i""
11A
the
-
statement
re-
regis-
a
u"der
the
stockholders furn-
information
mission's
tion
proxy
the
oi
rules.
compar-
Examina-
financial
statements
in the stockholders
contained
ret-
ports indicated that approximate-
Securities Act
may be withdrawn ly 21% were deficient by Commission
reporting standards. These
clarify and strengthen findings were made available to
the statutory provisions relating the Committee in
May, 1956, toto
financial
responsibility
of gether with our endorsement of
brokers and dealers; and author- the enactment of the financial reize the Commission, bv rule
to porting, proxy and insider report-
„
Rule
concerned
of the regisin
regulat°
whiffr ha*
KAAVT
i
ing provisions of the bill, but
our
or
reliance
Kvnn
«* *
Exchange
the borrowing, holding
lending of customer*' securities
recommendation of deferral of
ac-
by a broker or dealer. Many other
minor amendments were also proJ
M
J
posed and
t
Representatives,
Securities
that
were
with
able to that required by the Com-
mission:
83d
to
208f46the SwurhfeT^ct^of
the
clear
instances
corT
only with the consent of the Com-
Congress, 2d Session, Reo«rt No. 1542
J933,
it
a
Wall
ma
House of
that
their
--
19,
criminal
clear
on
CommissiQn!g„^qz£alled
sale"TuIe. This is a technical
'
make
tration
the
interpret^ nilf
to
it
after
sale
requirements
aid
an
make
sufficient basis for injunctive
deeply
of evasion
cases
_
as
showing of past violations is
lief:
ura-
original distribution,
Abuse
form
prosecutions:
dents
after
they have taken place, large
Department of Justice for crim¬
inal prosecution, than at any time offerings, which purported to be
in the Commission's history.^non-public and hence exempt, in
of
offering
because of the financial condition
1 p.
exemptions.
New
Now
and
Our
nn
the;registration
available to the
clWAACcfitl
q
a
them could
MlM
on
sale of securities."
islation.
to no
offerees."1
25
some
+n
recently seen some
were unregistered
in
reliance
on
the
non-public
offering exemotion. If these securities had been registered and the
' no
in
Exchange Commission's authority
to prevent certain remaining types
of abuses in the distribution and
Senate
have
we
rules
the
Fkonornic Report to the Congress'
Jan. 23, 1957, that the Congress
"give favorable consideration to 1
proposals that will be made for
strengthening the Securities and
coming recommendations for leg-
offerings which
upon
that
We
are
appreciative
of,
and
believe eminently sound, the re¬
of the
too,
to
be offered, provided it is not
'publicly' Jaut 'privately' offered,
which the Commission by rule of
may
requirement in
our
or
function of the capital markets of
the country.
amendment to deal with the problem for inclusion in our forth-
limit
tration
no
have proposed changes of our "no
sale" rule, and are presently considering
including
a
statutory
budget
by
is
pertaining to the issuer, a fairminded financial analyst would
have been hard put to it to justify
the purchase of the securities. We
ably may be expected to possess
some familiarity with the business
involved" and stated: "There is no
amount cannot be determined be¬
there
enforce-
our
including the leg-
year,
of
tions, is substantial, but the exact
cause
that
number
claimed but not available exemp¬
discovered
believe
program,
same
prospectus
inspections
or
as
a
result of complaints re¬
ceived from the public, and we
are presently instituting more dis¬
ciplinary proceedings for broker-
brokers
We
ment
interest
that
companies
whose
stocks are traded over the counter
and anti-fraud provi¬
sions of the Act, pursuant to such
and in¬
which
which
the proposals will be promptly
submitted to the Congress,
ber and strength of the members
of our professional staff. We have
House
broker-dealer inspections
av8tl^er"TKelTumber of
public
Representatives, in a report in
1954, referred to the "non-public"
exemption as an avenue for "the
making of an offering to a limited
the
securities
not
after
of hours in the day and the num-
of
broker-dealer inspection program.
We
are
making more frequent
are
26,
great "losses
whlCft
limited, of
Interstate and For-
on
Commerce
nitiTtrTSues—which appear in
this
estimate amounts approaching
million of securities sold to
the publicTfi
and
of
eign
claimed_exemptions which, in fact.
meet
Office,
$100
Committee
problem,
the Commission has expanded its
to
Regional
the Commission's history.
ample,
order
York
the registration requirements. The
Securities Act of 1933 based upon
In
New
we
by
because it seemed that
to
the basis of figures compiled
known cases of this kind by
on
25
quest contained in the President's
To the"investing public have later
Congress, giving^jl'l'Urred. These are situations in
protection of the which,
had adequate disclosure
anti-fraud provi- been made of the financial facts
involve
would
Congress
been acute is the sale of securities
without
and
to buy
not
or
traditional '"nlim
Exemptions
unwisely,
financial dift'i-
the
investment
opinion,
provided
against
any
action of the Commission which
up
dealers
speculated
or
stepped
enforcement program of the past
of these firms
have been enjoined.
have lacked adequate financial re¬
sources
Commission's
the
public
disclosure
*
cite it only to
reputation built painstakingly
upon just and equitable princi-
ness
the
The
which to
on
informed
an
public
^^^^menT counselor
western
base
sions,
telephone purporting to rep¬
a reputable house on Wall
Street or from Canada and holds
tance
/a\
have
our
that> not 0Y}lY h,as
...
changed hands on the New
Stock Exchange rose to $32
adequate information
the securities being offered. These
are the well-known "disclosure"
particular stock, in which he
purchased $65,000 worth, had
^ ac^on 0f the Commission been
biliion in fiscal 1956, more than
temporarily suspended from trad¬
double the comparable figures of
ing on the American Stock Exfiscal
1953, and
like
increases change pursuant to Section 19(a)
egistered on
were
connriiipc
Trvf»v>an<x.-a
registered on the regional
the regional
(4)
of the Securities Exchange
exchanges and are believed to Act. When we asked him how he
which
in
Feb.
on
we have made and will make, is
of vital importance to the successful performance of the economic
rule,
many
merger
transactions, ostensibly exempted,
have in fact been consummated in
livery of prospectuses so that the
prospective investor may receive
doubtedly true, except occasionally- The fact of the maUer is
~
criticism
The
of
purchase
the
avoid
to
judgment whether
my
1952.
billion in
dence
speculative securities on the basis
of a long distance telephone call
from a broker whom the analyst
has
never
met and this is uti
industry
islative recommendations which
prospectus requirements of the cause these transactions have ocearnings
rooms." ' Obviously, a skilled fi- Securities Act. The Securities Act curred without notification to the
process supplies the balance estinancial analyst should have suf- provides for registration of new Commission, we are not able to
mated at $7 to $8 billion annually ficient
common sense and pru- issues of securities and the de- estimate their dollar amount, but
ital markets by the
various
Act,
this
accruals and
The capital formation
preciatiop
with
registration
the
of
frrgVlglQnsIaEjJi^
Under
proposals
to
not
securities
of
Thursday, February 28, 1957
.
groups and members of the
cer-
tain types of corporate mergers,
consolidations, reclassifications of
seciLrilifSL_arui acquisitions of as-
forpurpdses
respect to the "intra-state" exemp-
billion amount is supplied
internal sources, such as de-
American
bv
dishonest broker-dealer problem,
there has beeni a lesui gent£jjXJJl£
the $60
"Intra-State" Exemption
We find similar conditions with
that is
to provide plant facilities,
working capital needed
and
been
during
constitute
Second, as an outgrowth of the
of industry,
purposes
say,
tools
has
effect
sets^hagg,
The
applied for cap-
$60 billion is
investors
of
made.
Regulation of Securities Markets
over
usually
to
an
inside
large public distribution to
group,
in
the Commission, under which
..
Act
of
1934, the Trust Indenture Act of 1931,
and the Investment Comgany Act of 1940.
a
«a
4-
a
ma
MA
A
some
1a
a
*3 J £
A
A
»
A
I
A
J
additional amendm
a
a
a
a
J
of
on
the provision for recovery
profits from short swing trad-
"
i
ing
*1
ments will be prooosed.
In
tion
*
by
1
j
Ait
J
insiders
<•
i-
*
-
#
_
until
a
Ill
ii.
_
further
t_
study of this could be made.
order to facilitate the work
The
Committee
did
not
take
°f the Congressional Committees, final action on the bill in the 84th
with their approval the Commis-
Congress,
but Senator rwlbright
■
.
Sion
[held]
conferences
on
these
_
2 Senate Report 376, 84th Congress.'
Number 5616
185
Volume
.
I
The Commercial and Financial Chronicle
.
.
requested the Commission to extend the study we had made so as
to obtain
information about the
generally agreed on the necessity
and
proxy
practices of insurance companies
which we had not previously done
because of the exemption for -such
shock of a severe-decline in earnings, and for nqt too excessive an
amount of det>& notwithstanding
should promulgate a Statement of
Policy on the subject of capitalization ratios.
In this connection, I wish to
thank the New York Society of
Security Analysts for taking the
the
trouble to establish
financial
for
an
stock, equity^to withstand the
mon
reporting
adequate "cushion" of com-
cheapness
apparent
of
bond
companies contained in the Sub- money versus common stock
Committee's August, 1955, Print of money and the deductibility for
the bill.
We have recently com- tax purposes of interest expense.
pleted that study, estimating that
approximately $24 billion
subject to the bill if the
exemption
for
insurance
companies were deleted.
We found
that both the proxy soliciting ma-
since
terial and the financial reports to
the end
assets of
1935
markable.
today is in
Would be
stockholders
companies
these
of
ious
the
significantly deficient by
Commission proxy and accounting
regulation standards and, accordingly, expressed the opinion to the
be
to
would be
Committee that it
con-
provisions of the
sistent with the
Federal securities laws and of the
Fulbright bill that the exemption
for
insurance companies be deleted and the bill passed, subject
to certain other technical suggestions for amendment.
little short of reThe utility industry
a strong economic and
-
that
it
of
stay
that
1955,
bility and that the question
At appropriate ratios should be
the basis of
the
balance
on
of
aggregate
sidered on a case-by-case
which takes account of the
as
follows:
to
with
and
rea-
rni ttmrtk;
sonable
redemption premiums, if
any."
In no case presented lor
decision since these Statements of
Tones
con-
basis
r^np^
_
rn
im?
Tnn
Avpniio
Uhlmann & Benjamin
that the formula of the public offering price plus the coupon or
annual dividend rate is
r*
bwithWPr
Pnnnj £.
Zi
Policy were adopted has the Com-4
mission had occasion to determine
Adds
(Special to The Financial Chronicle)
CHICAGO, 111.—Andrew G. Bef-
unreason-
cumstances of the,case at the time
time
when
many
securities
able.
are
50.7%; preferred stock 12.3%; and
common stock and surplus 37.0%.
the
views
and
when
which
comments
In the Eastern Utilities Asso- we have received will be examciates case (Holding Company Act ined and studied not only by the
Release No. 11625, p. 55, Dec. 18f Commission and its staff, but by
1952), the Commission prescribed, many others, including your Soin connection with its approval of ciety, and that they will prove of
benefit to other regulatory agencies, to utility company managements, and to security analysts.
I would also like to say a few
words about call prices on public
utility preferred stocks and bonds
and the problems we face in deal-
However,
under
and
We at the Commission hope that
consideration
a
notice
given
trust bonds, that the
system s funded debhratio should
of the Congressional purposes ex- not exceed 60% and that the compressed in the Federal securities mon stock equity ratio should not
laws and refrained from express- be less than 30%.
Since the reing views as to any other areas of maining component of capital in
Federal or State regulation of the a system with this maximum debt
insurance industry.
vL
ourselves
reasonable
to
as
With Spencer, Zimmerman
redeemable "... at any time Upon
issued.
lim- collateral
In expressing this view, we
ited
id
(special to ths financial chronicle)
,
toncini has been added to the staff
intends to consider each case as it °£ Uhlmann & Benjamin,. Boardcomes
before it for approval, in of Trade Building, members of the
the light of all the pertinent cir- Midwest Stock Exchange,
debt
long-term
»VIU1 wt«r»«iaii company
broader.,
a
variations
existing * among
the
various utility companies as well
as the economic climate at any
sheets of all Class A and Class B
privately-owned
electric
utility
companies in .the United States,
the composite capital structure
was
prescribed
standard for call
summary,
anx-
way.
mission
WJfK Marshall
prices than the'
CHICAGO, 111.—Lester C. Berformula I have just described, i.e., ryman and Juliana A. Giuntoli are
that the first mortgage bonds' and with The Marshall Company, 30
Temporary preferred stocks of public utility North La Salle Street,
under
the companies subject to the Act be
that the setting up of
specific capitalization ratio standards can lead to harmful inflexi-
is
financial position, and we are
utility companies subject to the
Act. In these Statements the Com-
Committee,
Chairmanship of Mr.
Cecil
E.
Trefthen, to study our letter questionnaire. As you know, the position taken by your Society is, in
cial health of the utility industry
companies
a
Utility
The improvement in the finan-
with
insurance
169
31
(1019)
the
it must
the
Commission
market
be
With
conditions
passed
upon.
of
this
prices
question
for
of
redemption
refunding
is
in
purposes
CHICAGO, 111.—Harold K. Dart
now
with Webber-Simpson &
,,no
~
a
comprehensive
redemption provisions
ci
+
e*
i
W. E. Hutton Adds
(Special to The Financial Chronicle)
their effect on the offering
prices of securities by the Wharand
LEXINGTON,
School of Business Adminis-
ton
n
Exchange-
sponsoring
of
o
u
the present, we were glad to learn
that the Life Insuance Association
study
r
o
lu
™eI?bers of tbe Midwest Stock
periods of high interest rates like
is
Webber-Simpison
(Special to The Financial Chronicle)
Because of the great importance
Ky.—Richard Jlv.
R.
French has become associated with
tration of the University of Penn-
W.
sylvania.
staff
Short
as
representative for A. C. Allyn &
A member of
withjthis question under the has been invited to
our
serve
a
E.
Hutton
Street.
&
Co.,
He
was
267
West
formerly
A
Galvin
the
exemption,
sincerely hope that the 85th
I
and
omitting
Session)
1st
cress
insurance
company
cive
will
rnn„rp«
favorable
it
conspiration.
the
of
Utility
Act
Hnldim?
TTtiiitv
Act of
nanv
1935
-
Tom-
Our Division of
is currently
Regulation
rnrnnrfltp
study of capitalization
ratios of companies subject to the
making
a
has been
much attention
So
Art
or ldeal
subject,
lenaer
consumers
to
capitalization ratios, nor charged for services
sets
a
fixed
or
permanent
standard to be applied to all
jurisdiction under
our
P,,Hiio
iha
able addition to our present limited store of knowledge on the
case
Public
rinaiiv
ici
Finally, let inc turn tut a few
me turn for a
to
tee should provide a most valu-
mey
across State
assumed that the 60-10-30 policy lines are_ also regulated by The
die
of the Eastern Utilities Associates
Federal Power Commission.
Administration
minutes
are
though the Commission has not closely regulated by the States in
tempted to prescribe optimum which they operate.
The rates
fu
sys-
interest
paid
by
on
success
of
free
our
enter-
prise system depends on the prop-
public utility
bonds and the
its
company
The
bers of the Boston Stock Exchange.
With Investors Planning
pressed in the Federal securities
(Special to The Financial Chronicle)
laws which we administer and our
BOSTON, Mass. —Richard M.
McLaughlin is now affiliated with
Investors Planning Corporation of
...
..
,
Commission.
regulatory authorities as an im,- operating policies and programs,
Sept. 5> 1956, the Commis- portant element in the rate-mak- some of which I have just de_
.
iiot regulate scribed, are vitally important to
New England, Inc.,
Street.
.
.
.
..
...
„
Forming Droulia Co.
Effective
nv
that^
provisions
provisions
Art's "other
Act
otner
the
the
that
fact,nthenAct0peremitsethe
-• -1-
—c
,
.«
of
survival
holding company systems which
certain standards and propro¬
meet
vides for continuing regulation
viaes^ior wnuuuiug xcguwuuii
such
companies
Fvrbanffp
Exchange
anH
and
To
nartiMilar
comply
Commission
commission
a
-
as
as
to
to
matters.
financial
corporate-and
of
jj.
by. the Securities
ment
0f p0iiCy relative to appro-
panjes
subject
Holding
the
to
w
0f
^tptement
of
iSSuers
subject- to -the
investors
regulatory'
.
the
public-sons
as
possible,
the
.
.
million
ternal
all to raise
securities,
of
22% of all the exfinancing of all electric and
capital,
or
questionnaire
directlv
-
Division
and institutional investors of $565 ;Corporate Regulation sent a
•new
probably know, the pol-
are
required
to
of
letter
Over
a
1.C00 Federal and State regulatory
agencies, utility companies, insurutility companies during that; ance companies, investment comperiod. The aggregate assets, less panies, banks," underwriters, text
valuation
reserves,
at Dec.« 21, book writers, educators in finance,
1955, of the 23 registered holding security analysts, and other intersystems vvas $10.4 bil- ested persons..
In addition, the
f
company
lion.
" •?
.
.
~f
v
■
»
..
he
1
securlties
-u
4.
markets
4.
and thus contribute to the success
of our free enterprise system and
all
the welfare of
our
people.
with offices at 25 Broad Street,
New York City. Partners will be
George Droulia, who will acquire
_
an"Exchange'"membership"*and
Regina Krois.
in
A
.
^referred
(vr
stock
f
be
mav
re-
During the periods of wide van-
ahon,so ^
dividend
"wf hlle
a es
.Commission made general distri-
Mff1
witnessed
.
bav.e ^
ve? ^ a ^
snice
MarJu
Federal Reser ve Accoid of Maicn
19ol, the problem has assum d
added significance, lhe Com misS1(J11S standards m lespec. of the
call pnces on bonds and pifcired
stocks, issued by holdi
omi <» J68 registered under th
ct anc
by their public utility subsidia i a
gas
-
the
follow
to
o{
cu
J
J
apprcrval:.
subsidiaries .to
their
Courts
.
'
&
and rOnsiimers
pieieireci■ SIUCK may - ue i.e
and investors anq consumers deemed for refunding purposes.
and
activity, adverse findings. '
'
during fiscal 1956 the Commission
in order to obtahi 1 he benefit
approved the issue and sale, bv of the views of as large a number
registered holding companies and ;of interested and informed perthis
ess-
Droulia
8
n
a
pnsing
Aet
Anv
securities .mission Would generally apply in
determining whether to impose
As-an indication-of the magni- terms
and
conditions
or
make
tude. of
turisai
jurisdiction by
March
members of the New York
Stock Exchange, will be formed
Co.,
°uns a.
f,q
^
roiiow iri
«TPyJ
y ^ateme"^ °* interpreting the Act, require that
Policy
issued
on
this
subject we~ concern ourselves with the
l]H b
if
w" concern ouiseive. \vun
r®u.ld habeas its pin pose tne ap
pnces at which bonds, debentures
Art
pnn,nanv
issue
without. Commission
our
Ihfir'^uhsidlLfv^Deratfni61'com'' £y Suide"linis. Iaid we and
dovvn
their
subsidiary
opeialing
com
Congress,
which
Subsidiary ofsucS
of «
under
unaer
As you
registered holding
company cannnt
utilities
u'uiues
priate capitalization ratios in .con,.. th"e mandate of- the'Congr
nect10n
wlth
security
issues
by
68 Devonshire
the proper functioning of the mar-
staking a study for the purpose Act. This statute is designed to
Elected toward tho-elections of of determining the advisability of supplement and strengthen State kets' The w0lk of the Securlties
tHnldiXcXna
Act which recommending that the Commisregulation and not to duplicate it. and Exchange Commission should
caused the simplification and inte^"/persons TT^sed* State! However' of capital to the public help to justify and maintain pubwa are contflrned with uc investor confidence in the inthe costs
gration of the huge holding com-
is now connected with Hines,
Galvin Co., 53 State Street, mem¬
er
*-ems> these ratios have been gentems,thefera«os have been gen- dividends which it pays on its
/nf6working nolicv ^of8 the preierr^d and c51T\m?n stocks a*'e
Present working policy of the generally regarded by most rate
±rAatfs SS??er hf
ray
functioning of the capital markets. The statutory objectives ex-
a
o^Corlllate^RcipPion 5m un" inf form,ula;.Wb
(Special to The Financial Chronicle).
BOSTON, Mass.—John P. Mur¬
^
,
a,
n,ft,
th-jf
cAftiou
vveli settled that
wliich b ^ d 1
"
Crentuica could, be^ redeemed by
shouid f10* exceed
.^ became prettj-
*he +PWe at
n„un„
Af
"
The
Commission's
JnS price DlUs the coupon rate
^ laseoflretenedstockthe
™
J
in-
to 1,000 other persons on the Corn„
mission's mailing lists. The response has been gratifying.
To P°
yredemption price could not
registered companies. The ordi- date, 220 letters comprising ap''d th„ *sum
the public oi-.
nary
occasion for our expressing proximately 700 pages have been
e
price plus the dividend rate
such interest arises when we are received. The views and comments
5 H
F
per share.
asked to approve a financing, and
contained in these letters are
However,
the Commission has
the specific provisions lie in secquite varied in their scope and
1(b), 6(b), and 7(d) of the ^e*ail and are being very care- recognized that strict adherence
Act.
'
'
fuily studied by our staff.
t0 rigid formulae might prove to
ity
in
est
in
field is great and it
gives us a strong interfinancial stability of
this
naturally
.
responsibil-' bution of the letter questionnaire f
the
HISTORY-AND
VEPCO'S
soon
be
in
$49,000,000
new
operation—and
The Yorktown power
power
so, one
history is also fast becoming a
1
PROGRESS
station near Yorktown,
mat the
ervation
ratios
cial
achievement and pressound
capitalization
essential
to the finanpublic utility
of
are
health
of
the
industry has been
recognized not
only by the Commission
other
regulatory
and some
bodies, but
by informed writers on
also
be
^
an
unreasonable
issuers
burden
upon
under certain circum-
stances.
In Febiuai> 19o6. the
sion should permit under the Commission adopted Statements
standards of the Holding Company 0f policy in which it attempted to
equity ratios which the Commis-
^pitatotio^ra^otT there
be
eodjfy,.its ftapdard3 c0"cer"in;
the sub- such
things,
should
be; ' and protective provisions for the bond
whether or not the Commission and preferred stocks of public
ject'. Most of these authorities are
Essentially what the study seeks
determine are the maximum
debt and minimum common stock
to
home, farm and industry
within VEPCO'S service area.
Half that productive
'capability will be ready in June with the completion of the first
unit.
The second unit will be ready to serve Virginia next year.
The
refinery
station
and
is
refinery gas—for
Here's
being
a
another
built adjacent to the new American
generating
Oil Company
of refinery by-products—petroleum coke and
good part of fuel requirements.
example
of
VEPCO'S forward
looking program—
make
will
of
landmark of progress.
300,000 kilowatts of power
station will add another
-»—<•
to
Virginia, will
of the nation's most treasured shrines
use
designed to bring more power and progress to
all.
VIRGINIA ELECTRIC AND POWER
COMPANT
The Commercial and Financial Chronicle
Thursday, February 28, 1957
.*. *.
(1020)
<32
based
on
including
Public
would
Utility Securities
the
about
'last
be
6.25%.
low
on
the
of $2.17
earnings
years
Based
this
on
' *
averages. -
\
it
is
giving
a
:
-
,
•.
industry
with
compared
as
UBS has paid dividends., unin- t
estimate terruptedly' since 1928.* 'At pres- *'
10.8—but,"
year's
From my
ent
Both figures are
would be 11.8:
dividend
stock
ratio is
price-earnings
price around 2312 the yield based
the cash dividend is 4.25%, and
'
paying $1.40 per share,
yield currently of 5.5%.
conversations with man¬
agement, I get the'impression that
By OWEN ELY
there
Texas Gas Transmission
producers. At the
it had an interest
in 23 producing gas wells and 15
line system with a daily capacity
producing oil wells in Louisiana
-of 1,110,000 Mcf.
It extends from
the-Carthage Field in east Texas, and Texas, and had estimated re¬
and
the
southwestern Louisiana serves of 72 billion cf. of gas and
Texas
Gulf Coast fields, to Middletown, 1.5 million barrels of oil.
Ohio.
There are feeder lines in Gas Exploration contributed about
18c a
share to the consolidated
;
Transmission
Gas
Texas
ates
"
Continued from page
Corp.
oper¬
3,442 mile natural gas pipe
a
southern Indiana, eastern Illinois
and
Sales
Kentucky.
western
to
account
for
volume
of
.sales.
(34% to utilities supplied
-entirely by the company and 54%
to other utilities).
Natural gas is
companies
utility
sold
serving
utilities
45
to
the
of
88%
about
208
completed
-communities, along the Mississippi
River and Ohio River valleys, in
as
Arkansas,
Tennessee.
Mississippi, Indiana, Illinois and
Kentucky; also to Columbia Gas,
Louisiana,
:
and Texas
American Natural Gas
of sales go into the
About 43%
Appalachian and eastern markets,
Fuel Gas of the
Colum¬
bia Gas system and Texas
Eastern.
via Ohio
...
deliveries
:
began
the company
August
Last
Louisiana
American
to
Pipeline for resale in the Milwau¬
kee-Detroit service area, the con¬
tract
being
for
18
billion
cf.
a
mostly in the summer. About
12% of sale are made directly to
year,
amount
reserves
of
tc
Sources
acquire new reserves
future discoveries along the
fields
30
trillion
the
on
which have
now
connected to
coast,
dedicated
feet
of
two
.
of nearly two
reserves
Texas
to
Discoveries of
Gas Transmission.
deeoer sands and extensions of the
The
that
apparent
of the
mistrust
a
I
lines at high load factors
$2.17 last year.
the
The book value of
stock
common
has
increased
from $7.94 in 1948 to
$15.35 at the end of last year.
"The demand for gas in the com¬
steadily
pany's service area is increasing
-xapidly along with the diversifica¬
tion of industry in the states bor¬
dering
Rivers.
the
Mississippi
The company
and Ohio
is planning
for continued
expansion and cus¬
tomers are expected to need an
additional 100 million cf. per day
time
except
costs
as
is
approximately
5,000 annually. Furthermore, as is
typical of most heavily populated
areas, there is a tendency for the
city
dwellers
to
move
to
the
suburbs. Although this may not
represent a net increase in num¬
area
subur¬
ber of customers, the new
banites
invariably
almost
use
additional
An
more
appliances.
factor
stimulating load growth is
the
in
division,
sales
company's
sold
1956
million in
$1
considerable
average
ings
by general inflation.
The
average cost of gas purchased by
the
in
in
Rail
Dow
in south Louisiana
approximate
slightly
less
than
18c
rates
will
In
its
and
be
proposed
utility
the
Louisiana
North
petro-c h e
is
It
Industrial
and
this
against
partly
in
and
Carthage field in Texas the
the
com¬
be
can
purchased
lower
levels.
at
The
estimated at 6.5 tril¬
subsidi¬
A wholly-owned
Texas Gas Exploration, is
engaged in exploration and de¬
velopment, and wildcat operations
thus far have shown better than
ary,
average success.
About $4 million
tias thus far been invested
in
the Exploration Corpo¬
ration
participated in the drilling
of
wells,
22
six
of
which
its
rates
own
than
more
this
of
slightly
by
back¬
is
United
I
always
the
in
Biscuit
14
an
substantial
with
prospects
of ap¬
United Biscuit is the 3rd largest
this
order
like to refer back
lows:
myself
pat
%
Bank
Debt
Preferred
Com.
Stock
Stock
17
Equity..
•
'S171
could
25
have
been
source
of
area
we
offers
so
serve
much
opportunity
to
potential
in
to pay bank debt.
to issue any
President
Stevenson
earnings at $2
with
compared
estimates
share for 1957
$*17 earned in
per
1956.
FREE
The apparent reason for the
decline is that rate increases to be
COPY
put
Box 899,
Dept. K
Salt lake
City 10,
Utah
into
effect
will
year
under
not
higher price of
fully
bond
this
offset
the
from suppliers.
The increase by the
principal sup¬
plier. Union Oil of Louisiana, will
be
gas
fully offset, but it will be dif¬
ficult
to
increases
small
immediately
the
number
of
L
has been paying
dividends
since
1952
1. Romanoff
the
place
July
on
1956, when
12,
I
strongly recommended Elliott
Company at a price of $22 per
share.
At
the
time
that
higher
UBS
Dow-
level
of
15%,
while
has
of
retreated
466,
the
to
than
its
decline
a
advanced
more
to
the
current
of almost
price
of
above
Elliott
34,
a
rise
Today, without attempting to
forecast in any way the action of
the Dow Industrials over the next
recent
Over-counter
;
UBS's
of
end
For
the
1957
at
about
in
Alfred
Alfred
of
the
Stock
is
not
United
of
Levinger.
Levinger,
G.
in
ner
C.
limited
Haas
&
part¬
Co., passed
Feb. 18.
away
Robert E. Ruse
Robert
E.
Ruse,
in'
of
18.
partner
Scribner,
&
Deane
*
Pittsburgh,
passed
away
Form Bocco
Feb.
Corp.
("Special to The Financial Chronicle)
MANITOU
Bocco
SPRINGS,
to
Officers
business.
in
engage
^
been
has
Avenue
Manitou
148
Colo.
Corporation,
Development
formed
securities
a
William M.
are
Cochran, President; Grant A,
Wilson,
Vice-President;
D.
R.
Cochran,
F.
and William.
Secretary;
Treasurer.
Cochran,
Now
LOS
is
ex¬
Corporation
Calif. — Cali¬
Wilshire
ANGELES,
fornia
3932
Investors,
Boulevard, is now doing business
as
Officers
corporation.
a
are
Stanley L. Ross, President; Eugene
Vice-President;
Edward W. Mitchell, Vice-Presi¬
dent and Treasurer; and P. FeldR.
Cuthbertson,
Secretary.
^
1
*
X
*-
>
Coastal
Form
>
Secs."
HOUSTON, Texas—Coastal Se¬
curities,
with
has
Inc.,
at
offices
conduct
are
145
been formed
Ashburn, to
investment
an
Officers
business.
Wilfred F. McKenzie,.
President; E. G. McKenzie, Secre¬
tary-Treasurer and M. A. McKen¬
zie, Vice-President.
its reha¬
management
By the
with the bulk
non-recurring
earning
L. W. Fiake
expenses
overly optimistic
Opens
SIOUX FALLS, S. Dak.—Lester
W.
Fiake is engaging in a securi¬
ties business
from
offices
at
1508
10th Street.
East
power
to the area of
R. F. Gilbert
share. In this connec¬
might be pointed out that
per
it
$5.00
per
maintained by
of
$26 Vz.
year,
stock
common
look for an additional increase
the
New
it
over,
the
selling on
Exchange
next
these
of
Company
action
in
Biscuit.
hopeful of reaching a minimum
tion
the
non-recurring
still inherent in
bilitation.
stock
From
$3.50
penses
is
program
earnings for 1956 of
per share — despite
report
substantial
Biscuit
today
amongst
good
common
stocks, Both my
family and myself have invested
the
as against only $1.45
In about two weeks UBS
in 1954.
to
Stock
of
1955 of $3.30
earnings for
United
security values
finest
grade
man,
'
.
share
per
$5.00
America,
*
modernization
its
by
present The
Security I Like Best for worth¬
appreciation the common
of
i
,
demonstration
beginning of a sharp recovery in
its earning power brought about
six to nine months, I
Biscuit
of
available
an
all UBS
time virtually
vivid
considers
the
writer
one
of moderniza¬
output will be produced on band
In
,
Because of all these factors, the
rehabilitation of its bak¬
by which
times and
ings ratio of 14 times.
figure of $4.00 per share.
50%.
of United
program
price
current
seven
why
upon
plants.
Already these im¬
provements have begun to show
up in earnings, although actually
this improvement will not be fully
reflected until the middle of 1958,
about
Since that time
520.
embarked
1954
reel
substantially
ing
imately
has
until
United
fashioned
This explains
costs.
in
Jones Industrials stood at approx¬
Dow
crackers
of United's pro¬
old
used
its.
that of its chief rival's price earn¬
about
Whereas
biscuits and
involving
ovens
will
York
year-end stock dividends of
At
has
now
behind it, to narrow the
between
earnings ratio of
two chief
its
as
remainder
the
For
while
large
a
company
annual
with
2%.
for
suppliers.
The
$1
offset
our
column took
It does not plan
additional bonds this
sales
did not
duction is prepared the same way.
cussion in this
January,
year.
the
about 75%
only
My last dis¬
the proceeds of which will be used
industry.
Write for
sold
well
efficiency.
of
ovens.
company has arranged for
of $25 million bonds, includ¬
$14
to
readers.
The
ing
a
profit
100%
sale
million
d at ion
advanced
10
43 1
as
tion and
rn e n
trend, and with its modernization
competitors in the matter of oper¬
extensive
15
be
now selling at about
earnings per share.
It
program
Singer,
superior
its
ductive and if
50%
could
for
biscuits.)
however, United
had been pror e c o tu¬
its price
It might
certainly logical to expect UBS,
a
much
stronger
growth
inci¬
products
to
due
was
than
;f
Per Cent
25
:
explains why the
thinking
so,
months
gain,
Nabisco's
of
|j
fol¬
$86'
___
Loans
to
whether
see
were
UREA RESOURCES BOOK
rather
the
Long-Term
in
the back,
on
but
•
Millions
to
If
18
is
National.
produced by United's major rivals
are baked on modern band ovens,
worthwhile forum—not
to
18%
38%, against
31% for
and
dentally,
90%
previous times I participated
next
times
gap
preciation.
ating
Company
my
as
rise
by
with
measure
Exchange and
Chicago Board of Trade
Capital structure at the end of
approximately
share
per
pointed out that National Biscuit,
although
admittedly
of
better
price of 26 V2
investment with
comparatively small risk and yet
as
up
growth,
American Stock
ac¬
was
be
IRVING KOMANOFF
tion.
1956
could
from 35 to 50.
shapes
other
in¬
being subject to FPC
creases
both
amount,
ex¬
ploration work by the subsidiary.
Last year
raised
will
plant
some¬
cost
purchased gas increased about $8
day capacity in 1958.
The company purchases most of million a year on Jan. 1 this year.
its gas supply, and has dedicated The company on the same date
lion cf.
1
c a
Herzfeld & Stern, New York City
of peak
gas reserves
i
m
Members, New York Stock Exchange,
pany's contracts do not include
"favored nation clauses" and
gas
earn¬
With every like¬
share.
per
the
over
range
Biscuit at its present
Despite
7
any
what
times
seven
earnings
minimum of ten times
a
earnings
quality,
earnings of the -(Much
material.
cost.
on
to
its
present
it is selling
at
$5.00
to sell at
ground in addition to its own fa¬
vorable
prospects,
that
United
Sunshine
new
this
based
that
about
to
averages.
increased
protected
are
the contribution to
company
will
6.8%,
261£,
share.
per
lihood
against the sharp fall
as
against
earners
fected
the
6%
prospects.
price of about
at only about
much
the
degree
decline
smaller
complete loss of incomes. Finally,
be af¬
may
price
from
Furthermore,
has five un¬
appliances. Most items were of baker of crackers, biscuits, and
industrial customers and there is derground storage fields capable
the semi-durable type and, there¬
cookies, accounting for about oneno serious competitive fuel
prob¬ of delivering about 9% of the
fore, represent an assured demand fifth of the total United States
lem
with any of these custom¬ winter's peak-day load. The com¬
for many years.
output. It is not so well known in
pany is working on development
ers.
the New York area as National
of other storage fields and ex¬
Texas Gas Transmission has en¬
Future Outlook
Biscuit
and
Sunshine,
because
joyed very rapid growth, with pects to double present storage
most
of its operations are con¬
All things considered, the out¬
revenues increasing from less than
capacity by the winter of 1959-60.
ducted in the Western and South¬
Regarding the cost of gas. Presi¬ look for Equitable Gas is ex¬
$10 million in 1949 to over $80
ern states; where it distributes its
million
last
stated tremely favorable. The area
year.
During
the dent Stevenson recently
under
various
brand
same
period net income jumped that the going price of Gulf Coast served is showing moderate popu¬ products
names.
Of the three leade r s,
from $1.8 million to over $7 mil¬ gas has increased since 1948 from lation increase; key industries are
United
has
shown,
by far, the
6c to 20c or over.
However, he operating at or near peak levels;
lion.
While share earnings were
-somewhat
irregular
in
earlier felt that gas would now stay personal incomes on average are most rapid sales growth in re¬
around the 20c level
(excluding among the highest in the nation cent years. For example, between1
years,
they have increased con¬
sistently from $1.14 in
1952 to taxes) for a considerable period of and a significant number of wage 1950 and 1955, its dollar volume
,
a
present
quality of the stock and its well-¬
defined
blue
high
price earnings ratios declined, but
cyclical stocks with current large
earnings and low price earnings
in homes in the company's
crease
service
which
now
company
yield
or
such
On
excellent yield considering the
cur¬
investor
affected
has
boom
rent
its
UBS, 'at
at
$1.60,
to
basis.'
the
end of next year, this price earn¬
around, storing excess gas ratios have also fallen sharply. In
ings ratio would drop to an al¬
and
during the summer months. As a an; atmosphere of caution
most
incredible five times pro¬
result, the cost of purchased gas is doubts -over the continuation of
spective earnings. Certainly it is
lower than it would be ordinarily.- present high prosperity conditions,
reasonable to expect a company
it is only natural that investors
of this type with its strong de¬
Area Growth
should
concentrate
on
so-called
fensive and growth characteristics
It is estimated that the net in¬ defensive issues. This explains to a
area are continuing. In
northern Louisiana and east Texas
acquired.
become
(possibly
meeting)
$1.80
a
of
prospect
increase,
all year
producing
the company is connected to seven
fields and new reserves are being
of
season
the pipe
to
It is
has
psychology. Not only have
chip stocks commanding
supply are quite well diversi¬
and the company is in good
from
it
November through
February, and offers the further
advantage of enabling the com¬
pany to take gas deliveries from
ing
fied
position
with
considerable
bons from natural gas,
Gas'
in operation
were
the last two months,
over
planned. This is of partic¬
ular benefit during the peak heat¬
it has begun construc¬
tion of a $6( million extraction
plant to extract liquid* hydro-car¬
Gulf Coast.
^Eastern Transmission for resale.
reservoirs
others
Oil & Gas,
about 20 times 1956 sales.
to
would
an
Markets
excellent
an
April
basis
The Security I Like Best
storage facilities and last year 12
earnings of $2.17 in 1956 and the
company's importance is expected
to increase.
Together with Union
Texas
the
even
end of the year
'
is
dividend
a
2
years
program
share earnings was
UBS for
a
number
before the rehabilitation
was
started.
Robert
in
a
F.
Gilbert
securities
7
fices
at
York
City.
East
Opens
is
engaging
business from
42nd
*
of¬
Street, New
Volume .185
Number 5616....... The Commercial and Financial Chroniele
(1021)
33
&
Continued
■
from page 4
jy.
v >»
•'
n-y
*
r
S'l
*
-V
\y Wholesale-Fotfd
^
f
T
'
,
Last Week
;;v.."••••'
,
The
•
Price Ihdex Moved Slightly Lower
Sluart Groap
U
*/
wholesale food
price jndex, compiled by Dun & Bradstreet,Inc., slipped somewhat, the; past week to$6.12 on Feb, 19,
compared with $6.13 a week earlier. This level was 3.2% higher
permit volume this January than a year ago. A gain of 17% in
'the South Atlantic region contrasted with the sharp losses -of
15%
in the East Central and 31% in the Mountain states.
*
/'■
'
.
'
Steel Production This Week Placed at 96% of
than
31
raw
,
automatic
increases
wage
this
without
summer,
interruption due to strikes.
to plan
fear
is
enabling
and
Commodity Price Index Eased Further in
consumers
index fell to 291.95
predictions
record, perhaps
new
that
steel
output
this
will
year
reach
as
$139.60
Much of this is accounted for by
The
American
operating
making
96.0%
rate
of
capacity
Iron
and
steel
for
of capacity
Steel
entire
the
week
ton
was
Institute
having
industry
will
be
beginning Feb.
of
(revised)
industry's
is based
For
duction
was
annual
on
ingot
production
rate
for
the
capacity of 133,459,150 tons
the like week
month
a
2,498,000 tons.
A
placed at 2,459,000
year
tons
the rate
ago
ago
the
of Jan.
as
-
128,363,090 tons
V Electric
The
;
of Jan.
as
of
electric
by
with
9,330
for
export
the
and
ishing
mainly
re¬
low
new
a
T
to
demand, coupled with heavy
strength in rice prices.
export buying,
cotton
growing
areas
r,
\
•
from
decrease
C
4
The
week's
past
.
output dropped 26,000,000 kwh. below that
of the previous week; it increased 643,000,000 kwh. or 5.7% above
the comparable 1956 week and 2,195,000,000 kwh. over the week
ended Febr26, 1955.
..
'•
/'
Car
in
Association
'j
.
•
American
Railroads
-
,
'
Month-End
Automotive
according
to
attributed
'
•"
output
"Ward's
to
a
Adjustment by Chevrolet
the
for
latest
week ended
The
Automotive
Reports," registered
adjustment by Chevrolet.
month-end
a
decrease of 8,521
cars and trucks amounted to 161,438 units, or
units below that of the preceding week's out-
-put, states "Ward's."
'
-
com¬
private
line
.
:
-
tele¬
for
use,
radio and tel¬
and
other
for
'
•'
•
had
total
operating; revenues
of
income
of
$416,520,177
and
$50,469,728.
-
the company
net
'
,,;
Last week's car output fell below that of the previous week
./by 7,309 cars, while truck output declined by 1,212 vehicles during
.the week. In, the corresponding week last
year 125,537 cars and
!
So. Ind. Gas & Electric :
43/g% Bonds Offered
Kuhn, Loeb & Co. and Salomon
& Hutzler yesterday (Feb.;
offered $5,000,000 of Southern
1956
Co. 4%%
Electric
Gas &
bonds due March 1,
first mortgage
of
new
passenger
appreciably below those of
were
dollar
consumer
was
volume
last
week
of
retail
to
the comparable
8%
was
ago.
the period
higher than
year
Regional
Bradstreet, Inc.
the
on
101.80%.
of
The
the
ended
a
awarded
petitive sale
expanded
year
in
trade
4%
was
cars
a
The group
terest, to yield 4.22%.
will
outstanding
at
:
_
from the
be
bank
used
loans
•
.7.22,673 trucks
7'
/•
Last
,
repay
totaling
part of
required for the utility's,
1956 levels by the follow¬
expansion and improvement pro¬
gram, or to reimburse the com¬
pany's treasury in part for expen¬
New
percentages:
England
and
Middle
Atlantic
+5
to
in
made
Food
the
agency
reported
there
22.901
were
trucks
the
United States.
This compared with 24,113 in the
ana 22,673 a year ago.
Canadian output last week was placed at 5,735 cars and 1,521
trucks. In the previous week Dominion plants built 8.049 cars and
1.827 trucks, and for the comparable 1956 week, 6,464 cars and
ceding week,
previous week
,
:
*
:
.
1,619 trucks.
.
Failures Edged
f
.
week
ended "Feb.
v
21
industrial
Slightly Lower Last Week
failures
declined
to
300
in
.
the
year
there
result
*•; 1 or more were
>■
last week.
,
-
'
.
•
.
.
.
j
was
'
sales
on
Reserve
1
-
ditures
The
at
for
made
will
bonds
such
be
purposes.
redeemable
regular redemption prices rang¬
from 107%,
to par and at
special redemption prices ranging
from
102.623%,
to
par,
plus ac¬
ing
of
was
7%
Board's
from
.
for
index
the
is
taken
the
week
ended
like
volume
favorable
in
New
weather, rose
to
store sales in
the
Federal
the
York
9%
City
in
each
case., -
Co.
is engaged
in the generation,
purchase, distribution and sale of
electricity in *76 communities in
the southern part of Indiana, and
purchase, distribution and sale
gas in Evansville and
Newburgh. For the year 1956 the
company
had gross revenues of
$16,554,152
and
net income of
of
to
11%
Reserve
natural
$2,312,301.
'•
•
Roberts & Co.
past
the
week,
higher
than
as
a
Board's
index,
Formed in
the
Denver
DENVER, Colo.—Roberts & Co,
has been formed with offices in
'
depart¬
New York City for the weekly period ended
16, 1957, the index recorded a rise of 5% above that of
corresponding period in 1956.w
- |
Feb.
interest
Southern Indiana Gas & Electric
registered above that of 1956.
1957, showed an increase of 13% above the like period of
last year. In the preceding week Feb. 9, 1957, an increase of 3%r
(revised) was reported. For the four weeks ending Feb. 16, 1957,
an increase of 6%
was registered." For the period of Jan. 1, 1957
to
..
crued
the
country-wide basis
a
Feb. 16,
against 25
as
year.
increased
sales
According
ment
Liabilities of $100,000
incurred by 27 oi the week's failures
and
'
Among small casualties with liabilities under
a
slight decrease to 48 from 51 a week ago,
*
week,
comparable period in 1956, according to trade observers.
was
although-they exceeded the 1956 toll of 31.
.
store
Federal
1957,
Retail
"
by. 12%, the 267.occurring in the similar week of 1939.
last
"$5,000
16,
-'gain of 3%
317 in the preceding week,
Dun &
However, the toll was considerably
ago and the 178 in 1955. For the second
consecutive week, failures remained above the pre-war level and
-size
r
past
period last year. In
the preceding week, Feb. 9, 1957, an increase of 4% (revised) was
reported. For the four weeks ended Feb. 16, 1957, an increase of
4% was recorded. For the period Jan. 1, 1957 to Feb. 16, 1957, a
Failures involving-liabilities of $5,000 or more dipped to 252
from 266 in the previous week, but remained above the 199 of this
,
the
from
from
Bradstreet, Inc., 'reports.
higher than the 230 a year
exceeded
.
and
the
volume moderately exceeded the level of the cor¬
Department
Feb.
Commercial
moderately
rose
responding period last
.
/Business
buying
slightly higher than that of last year. Although volume in frozen
foods improved considerably, the call for canned goods and fresh
fruit and vegetables slackened.
Although wholesale orders were close to those of the pre¬
assembled.
were
week
;
sale of
to
$4,100,000 and to provide
the funds
(
com¬
Feb. 26 on its bid
V
proceeds
bonds
bonds
-
...
•
:
'
—
-f9;
East North Central, West North Central and West South Central
-f-4 to 4-8; South Atlantic and East South Central 4-1 to 4-5;
Mountain and Pacific Coast 4-3 to +7%.
An upsurge in the buying of women's Spring apparel occurred
and Valentine's Day sales promotions sharply boosted sales of
jewelry and toiletries. The call for men's apparel climbed mod¬
erately and exceeded that of last year.
>
/production total of
considerable rise in
according to estimates by Dun &
ing
1957,
decline
Last week the industry assembled an estimated 138,527 cars,.
\"/compared with 145,846 in the previous week. The past week's
/
a
estimates varied from
22.
a
total
Wednesday
ago,
the
of
teletypewriter
1987, at 102.623%, and accrued in-,
was
somewhat, they
;
Feb.
in
Although dealer inventories of
on
for
programs
Indiana
buying last week,
moderately above that of the similar
1956 period.
Retailers of apparel, furniture and housewares re¬
ported the most noticeable sales gains.
•Automotive Output Dipped in Past Week Due to
include
For the. year 1956,
near-future
or
were
Bros.
total retail volume
.
3,231,456
'
.
There
-
and
reports.
.
for eufreflt
was
Similar Week
Loadings for the week ended Feb. 16, 1957, totaled 675,966
;
goods markets
gray
Trade Volume Rose in the Latest Week 4 to 8% Above
revenue freight for the week ended Feb. 16. 1957,
10,715 cars or 1.6% above the preceding week, the
of
sagging market. Cot-
of
the
1956,
142,730 in Indiana.
Services
also
evision
27)
-
cars, a decrease of. 22,353 cars pr 3.2% below the corresponding
1956 week,- but an increase cf
25,718 cars, or 4% above the corresponding week in 1955>;, ' -r
'' ;
T •'
^
the cotton
31,
of the company's tel¬
purposes.
of the
as
Loadings Increased 1.6% in Latest Week
increased by
!
times
delivery.
'f.Loadings of
T
four
than
and
State
phone and teletypewriter
combined with the expectation that 3 to 3.5
the soil bank program helped to
support the
ton export^ so far this season amounted to
week
the
the
Dec.
and
facilities
of cotton land will be retired from cultivation
under.**,
acres
in
Lake
exchange service and services and
were
some
is
of furn¬
had 3,374,186 telephones
Chicago.
helped to maintain
Drought in
Co:
-
services,
in
the transmission of
dropped in slow trading.
re¬
ephones are located in the city of
prices edged lower last week.
Hog receipts in
the smallest for any five-day period since last
hog shipments were the smallest since last June.
Steer price trends were
mixed, from steady to moderately lower
in the better grades.
electric
On
About 52%
while
Cotton prices
,
service, in the
and
Counties
in Illinois
'-Livestock
Chicago
Illinois
in service of which
the
August,
con¬
repay
be
Telephone
communication
company
3,926,015 bales, more \
larger as a year ago. There was a revival of -'5
interest ip cotton print cloths, although the actual volume of sales
'before.-
further
a
Bell
Indiana.
levei the past week; cocoa
World sugar trading volume dropped to about half of what it
a week earlier and
sugar prices lost ground. Strong domestic
was
pro¬
,
bonds will
telephone
of
Porter
use.
Electric
was
to
at
Illinois
million
Institute.. This,
and
optional redemption
prices ranging from 106.884% to
par, plus accrued interest.
light and power industry for the week ended Saturday, Feb. 23,
1957, was estimated at 11,920,000,000 kwh., according to the Edison
.
made1 for
purposes
series E
pany
1, 1957.
the
sacks,
of
the
to reimburse its treasury
deemable
occurred and have been slow to buy since the strike's outbreak.
actual weekly production
distributed
The
^
;
energy
50,985
sale
by
company's telephone plant.
and the Atlantic
while
Coffee prices softened a week ago. Roasters had bought heav¬
ily in anticipation of their current needs just before the port strike
Output Holds to Lower Trend of Past Weeks
amount
,
of
or
1, 1956.
the
used
eral corporate purposes, including
additions
and
improvements to-
had
this
country so far during the current season
672,941 bags, compared with 779,334 bags in the cor¬
responding period a year ago.
99.9%. The operating rate is not
comparable because capacity is higher than capacity in 1956. The
percentage figures for 1956 are based on an annual capacity of
-
area
be
American
zation,
Telephone &
Telegraph Co.
The balance; of
the proceeds will be used for
gen¬
the
selling,
of
advances from the parent organi¬
amounted to
1957
97.6% and
was
totalled
Cocoa futures settled to
ago.
in
wheat
from
will
expenditures
struction
little
was
mainder for domestic
equiv¬
week
a
weeks
curtailed
bid
a
State
alent to 2.456,000 tons of ingot and steel for castings, as compared
with 97.8% of capacity, and 2,504,000 tons
The
for
higher
,
on
Friday
the
average
1957,
slightly
war*
competitive
engaged in the business
steel-
the
an
25,
strike
port
shioments
that
announced
96.1%
closed
prices for other grains
is
bank¬
101.384%,
to
yield
change in either trading volume or the prices
week, as bakers continued to display a minimum of
interest in enlarging their stocks. Flour
receipts in New York on
$1.62.
up
week
at
at
26
proceeds
bonds
company
;
.
There
rise in pipe prices.
companies,
the
for
a
net
a
the
of
Inc.
underwriters
Feb..
on
the
for flour last
pig iron prices will rise because of recent advances in prices
iron ore and coal. The
publication's arithmetical composite on
at
end
beginning, although the
1988,
interest,
The
Net
-
was
offering some
price support. Trading volume in grains and soybeans on the Chi¬
cago Board of Trade averaged 50,000,000 bushels a
day last week,
compared with about 60,000,000 bushels in the previous week and
42,000,000 bushels a year ago.
that
steel
prices at the
the
/
.
.
Continued drought in most of the Plains
Coast
gross ton or $13.34 below the December record.
publication said that steel prices continue to move up¬
ward, mainly through revision of extras, and there's speculation
finished
at
<
dropped.
a
a
prices of
this
While
15.
Co.
100.659%,.
,
Wheat
The
base
Feb.
on
year
than
scrap. In the week ended Feb. 20, it declined 34 cents
ton, the smallest weekly drop since late December. It now is
of
a
stricken wheat belt.
steelmaking
$52.83
(1930-1932-100)
1,
accrued
sale
,
A
high as 120,000,000 ingot tons.
Prices of scrap, a basic raw material of the
industry, showed
signs of leveling the past week after plunging from record heights.
The
firming is reflected by "Steel's" price composite on
a
Week
a week earlier, it
surpassed the 280.89
ago.
v. .
<
v •
••
'* ••
rally in wheat trading in the early part of last, week pushed
prices up, but most of the gains were offset when rains on Thurs¬
day improved the growing conditions in part of the drought-
of
Feb. 24/ putting the rate of output up to 97.5%
of capacity which means a
yield equal to 2,495_.503 net/tons.
Eight weeks of this year have passed, and the ingot rate has
not been lower than
96.5%, "Steel" continues.
A number of steel men queried by the publication last week
reaffirmed
March
award of the issue
slightly below the 292.73
in the week ended
-
Latest
;
.
sale
..
V
use
Reflecting a series' of declines in the over-all level of whole¬
prices, the Dun
Bradstreet wholesale commodity price
of
now at-high levels, will continue to gain and
67,000,000 workers by mid-year3 it stated.
•
of steel for ingots and castings rose half a point
reach
lambs.
and
due
Wholesale
Production
■
hogs
steers,
total of the price per pound of
sum
foodstuffs, and metals in general
&
investment
an
ing syndicate which offered yes¬
terday (Feb. 27) $40,000,000 of
Illinois Bell Telephone Co. first
mortgage 4y4% bonds, series E,
4.17%.
Employment,
;
will
wheat, corn, rye,-
Lower in price were flour,
potatoes,
cocoa,
were
Stuart
of
manager
is to* show the general trend of food
prices at the wholesale level.
their spending more confidently.
That
sugar and eggs.
Halsey,
'
•
.
and its chief function,
Monday of this week.
.
Bolstering
consumer
spending
power,
the - metalworking
weekly said, are the assurances that millions of workers will re¬
ceive
ago.
The index represents the
Capacity.
;
income
year
Commodities quoted higher last week
•<
is?on the increase and will help quiet
the jitters recently expressed about the country's economic
health,
"Steel" magazine reported on
*
a
oats, beef, lard, butter,
barley, cottonseed oil,
-
Consumer spending
'
.
the $5.93 of
Offers III. Bell Bonds
the
First National
Bank Building
securities business.
Officers
are
Edward
Roberts,.
President and Treasurer; Dorothy
Mason, Secretary. Both were for¬
merly .with Shelley, Roberts &
to engage
Co.
in
a
"
t
The Commercial and Financial Chronicle
(1022)"
34
Continued jrom page
lor
Transportation Policy
And the National Economy
GERALD D. McKEEVER
'
of the rails on
Although it broke
below
40
of
ness
rallied
day
on
it has
which
The
12,
Feb,
early
in
starters
this
80
growth
a
in the rather
seen
additional
diesels and
60
we .projected for 1958. Another
30 to be *Ps*al.led in 19°9 will
complete dieselization at antici-
by the present price and the yi'ld
2^
of capitalization
rate
nnlv*4iT
i
,.
for
equity.
.,
medium
a
quality rail
fairlv
kent
well
aoace
pPV'lli L„
l°n"mlles
L
freight
per
carninffs
capitalizes 1956 earnings of $4.23
of S4 28
per share at almost ten times as
of
against the
-
rn' °Paci f i 1°does
its
rail
though
stem
alone
of
both
traffic
have
trends
and
revenues
not
operations
the
its
outpaced those of the NorthwestDistrict
ern
average
and
of
the
well for
as
several years.
earnings from
which
farmed
are
maToSr mncerlTs
s:de
explained
iarge
but
Tvhile
num-
a
that
This
income
lion
oeen
in
1955
million
muimn
gain
is
past
ffreat
deal
*rk
of
its
0f
outlook
+be
a
construction
such
for
Northern
°ratheer
a
its
hrid"e,
as
'
buiidine
fbe
in
doinV
as
own
eisewhere
last
year.
forecast
is
devel-
incf
nffiniai
tn
increase,
•Rl
under
A
mil
7
$1./
jumped
mil-
to
$3.2
lnreer
much
»
1957
parnina*
Pacific
has
These
are
stated
the
current
income of the
million, accord■'
oeHmoto
operating
ments
ml
sources
aild
it
lumoer
+
that
the
this
the
1956
but
net
it
from
about $2 million,
be roughly estimated
current
year's
should
source
ine
marj>ln
between
nu« a"d expenses.
a
a
Dossible
possioie
and
Ship-
lumher
and
thev
tent
e
securing
must
ey
is
full
power.
net
be
from
around
other
because
so
continue
forms
racitic.
tend
Lumber, shingles and lath
"■'1Z—°
~—:
high
valued
1
pafiiC'
of
tnt
This
forms
other
transport have moved m
more
relv
to
transportation.
because
so
upon
traffic
of
of
the
which
hitherto
was
relied upon to exsort of internal subsidiza-'
a
7
17
\
7—7""i7"
iniiQSRCef P^oducecl ^10n to m.V.ch lovY ^rade traffic,
1956 freight rev- because railroads have been com-
18.6%. of total
and
enues
veneer" and
plywood
contubuted
another 4.2%.
The
movement of these commodities
has ljeen adversely affected by
the cut-back in private home con-
pelled
continue
to
to
operate
a
wide variety of obsolete and losing
and
services
all
sons,
tor
which
of
tated rate increases
flows
end
There may be gains from other
:r
directions, however, for the ollicial forecast at this time is that
ton-mileage
road
other
have
on
rea-
necessi-
these basic
little
Blue
At the 1956 yearNorthern
Pacific
was
the
.
.
,
of
as
production from
against 99 at the end
1955.
^
in
The increase in oil production
the
j¢
pace
Williston
cilities
and
a
ad-
faster
that
Pipe
Northern
Line,
Pacific
may
be
about
the
traffic
of
which
are
still
subject to diversion
subject to diversion. ror
instance, the shipper' of freight
the bill for the loss in rail-
Pays
passenger
same as in 1956, but not more. An
increase in traffic volume would
probably
ulated
and
commuter
service.
be
necessary
to
absorb
(3) Our for-hire system of
motor
is
transport
reg-
under
which
the
increased cost, and hence the severe and growing pressure from
doubt concerning the 1957 level the lengthening span of exempt
of operating income.
The 195o operations and from the rapid
10%
in-
r°und
transportation fabeing increased; The
are
Butte
Basin
is due to hit
areas
now
.
.
the
in
166 wells
<.
the
mubi continue 10 reiy
railroad
on
lumber is
struction.
u
0ur
(9)
in
has
a
terest, stepped up its delivery rate
to 36,000 barrels
daily in Decern-
traitfic
fincj
but
new
^ but find
^ovethelmed
as
r©aa
is
aiso
growth
rich
other
in
of
aspects
natural
of
wage
increases
alone
(I9)
lack entirely any economic policy which is designed to
capitalize wisely upon the steadily
growing opportunity whicn advancing technology in transporta^°h affords us, just as we lack
any policy which recognizes the
more
than sufficient off-
set» it:,uvv?s stated authoritatively,
?
,
"ov-
^cuiuiun
ore
possibility
enues.
ploratory stage in the
road's
lig-
11 is* thus not difficult to see
and timber had heen nwnprt Hi
that the allure in the Northern
rectly by the road's whollv owneH Paclflc! situation centers arou id
subsidiarv monnw esiem Tm
Nnrthwedem
the 011 Potential. This, however,
y,
iminvnl
tlio
Drovpmpnt
Cn
h»,$
thic
involves the question of how the
is now
beinff linuidatpH
anH
ito
present stockholders' interests in
Drooerticc
Jp hpina
the ol1 element will be protected
to
thp
Hirprt
n„,nPNhin
Yf ^
Without dilution in the event of
NorthL Spifku ihi? has not a ,Tierger with the Great Norlh!
JNortnern
Bacilic, if this
U
deposits
U
S
I
U
I
d
Most
thp
of
mal
I
./AC
u
accompbsbed-
fnce
4,
L
q
*1JSS
-°
a8ainsf $1,310,000 in
■
ore.
^
?S produced on the
Goal
'w/hiio
u-i
'
....
iq«
is dd.
roads
lormer
l
p
lands
.
.
^
and
Committee
Policy
composed
officers
Transport
o n
Organization*
cabinet-level*
and
on
chaired
and
by
Weeks.
Secretary
appointment of the Clay Commit-;
tee naturally led it to withdraw
from a consideration of hignway
policy, the recency of the air
policy report which appeared td
nave Presidential approval led to
a neglect of that field, and simuh
growth
of
private
-
operations,
them
in
part. Finally, without ample
nnccihiiitiec
cfll/jv
aH
nr
study of the P0551^1111^ or advantages,
have
we
'^nerally
attit„He
developed
hostile
an
the
to
on
subsidiary
those
is
+u
cf
largely,
.
tne
if
mmcfmu
I
ties
increase
as
the
0f truckload traffic
regular flows
are
more
and
mixture of freight of less favorable transportation characteristics.'
transportation
anowed
be
to
companies
own
and
should
^ur highway system has
^C°mS "ot~ly' inade<»ua e
\
i°.„pacf- the ^crease
population
r0aas,
in
have
we
H is
an
even
vehicle
in
who
case
no
policy
should
to
improvements;
pay
the
many
one
o
,.«~1
real
(5) Our airways and principal
airports have become congested
to the point of danger and our
i
•
its
■
f
+
nl
later tne criuca
year
a
oarticular
and
nrUnt
rfirHc ^rPw
ir°™. ^
en-
v
of
lark
Knowledge
La®k 01
-
Not only
a
,
are
the ^narrowness
these several
but also that
iei
we
known to be acute, al-
existing. iJnf®^atJi°on.rt^]
'approprradequate
adequate to
lead us to api
ate and correct policy conclusions.
though there will be sharp differ- And this is a mistake made not
ences of opinion as to their nature alone by government,^ hu^_fre-
program
a
1942
tV; tprb; ^
" f3
.
are
10-year
Kq
in
Resources
published
Board
a
' I.
govtransportation
in
NPational
situation in air transport led to
new investigation, largely upon
tax-
propose to deal with
them? All are known to exist and
ibprn*? All srp known to pxi5?t and
vast
4«
its
it is the broadest
report
user.
pecunariy uaiiimg.
haw do
related,
help.
of
1«ulat1o7
the regulation
1I
sufficient docket of problems, al- and separateness of
though they are here, stated only efforts noteworthy,
whether
of vehicle increase to be
.
with
for
the
these
in
area
ment OI
'
' ®
t
between various types of trans(5) In each case tn6 particularportation companies, nor a policy, and opposing interests or various
except a "do-nothing" one with groups moved rapidly^ in o i
respect* to
the
opportunity for limelight and such efforts as were
them to earn a reasonably uni- made to focus on the interests or
form return, on their respective the
nation as a wnoie we e
capital investments.
•
'
quickly submerged,
question
in the-1956 legislation
can sufficiently transcend the rate
voViiAlo
findings
Nor do we have
a
poiicy, except a punitive one,
wRh
respect
to
tax
inequities
open
the
the
seril
planning
of rail-
the
needed
mileage.
adopted
gince
transporta-
aspect
payer br
so,
ernment
/A\
Except
vehicle
and
Even
operate
fjon service.
/in
the
retract
In the end its report was
a
of recomrnenessentially a series of lecommen
the
dations concerning the regulation
concerning transportation
domestic surface
advantage in rendering
economic and efficient
government s
led the Week s Committee .to
study.
form of serviee which wouid
WOrk to its
the
Cr,mmiff00tn
areas
further
one
a
.
h
cooldfnatfon of
tvpelf transl
type of trans- llentiidv
S anrttilr a?thou«h^,their
ier> although their
v^L^lhararterllt" suggest that datlons
'
varied chaTkoteristic^
any
anvernment's
the
with
principal responsibilities
and
All are inter-w quently by industry
grouos as
what we do about well. Indeed some of the limited
effect others and lessen efforts made from time to time
significance;
will
since
aggravate
have there. It is
0r
no
accident that
J._
students
of
transportation
are
coming more and more to emphasize the interrelationships and
to- emphasize, also, the necessity
have faced the unyielding opposition of certain of the transportation industries.
We do face enormous gaps m
knowledge of transportation,
which becomes more and
the course for a better transport more apparent as our unguided
project is still under study by an procedures appear to be obsolete, future.
growth continues and as technical
outside
firm,
and
with
the The system is in no position to
Yet, in fact, we continue to ap- change and shifts in the business
Northern Pacific and the Great kuimuuc to absorb the present proach our tra
continue
*
mc
vjiccn
lu
dusuiu
me
our transport problems in-world increase the complexity of
Northern in full agreement in the rate of traffic increase or to ac- this more complex tera as we al- the transoortation scene. The ICC
n}a^ter* H
said, however, con- commodate; the pending shift to most alv/avs have-^by the shot--has published railroad statistics
siderable further time will be re- commercial
jets.
gun technique when the
burden cn a comparable basis, as among
quired for the evaluation of theze
(6) Certain of our busier inland of the problem has begun to be companies since 1889, but it is
studies when they are completed,
waterways are being pressed by intolerable. We approach the vari- astonishing how far existing data
ern,
*1 7fut nnn
our
(b) The President's Advisory,
.uld supercede them in wnoie charged
s
.
™ay have been lnsPlred by the
the
9 8 experience where the 6%
land itself that bears1 t^ese riches
allowable freight rate increase
Ur^ium is also a
al- f°r a!mos,t 80% of the ^ar P">*
though this is only in the execl only a 2'8% gain in rev"
resources, notably coal, iron
and
timber
in
addition
to
nite
' . ■ ■ •
Committee to
highway needs:
.
^eir The Week'S Committee. ap~
of °S£Sh clnleluorf'is
<3»
cost of urban co gestion is peare(j to be broadly conceived
3 UP
to survey the whole field of trans^
our economic life.
pun, po^cy. Bui tne simultaneous
provide
the
.
and
faeilities
promptly
000 barrels.
of
While
aviation'
Clay
study
facilities
last year and its
daily capacity has been increased to 49,-
.
-.
The
(a)
become
with Tr'eel
W*H cost the road $5 million an- Hence, it has not paralleled the
uually. While the freight rate rapid rate of growth which char<
grease, ^acad at 4*8% f°r the acterizes motor transport generP^sent Approach to Problems
Northern Pacific, would seem to any and it will find its difficul-This "would appear to be
her
announced:
cities
major
Preserved ste^Uy"^or';Xgge7
tneir reve
That revolu-
"plant fa'obS&St
prevents
$4-4% million.
sharing
*
.
which brings together ail"
ernment concerned wit h
sJ^tavp^pearet
are expected to be lower
this..year and this traffic is of
great importance to the Northern
x
was
may
-
(i) a long effort by the Air5
Coordinating C o m m i 11 e e, an;
a
income.
lumber
of
a
offset
J>nou1^. orisei
t
in
'* *
figures,
gross
that
alone, we may note:
many ^instances, ir»m,: conaiuons
lpi«
ting
'
is
Thpv
.,
stated
should
sources
drop
.A much larger products
for
year, placing
oil
road at about $5.7
f>n=nc,'al
a
the
under
but
vear
a
Economies which could be placed
at tbe service of the nation are
barred by the want of investment
capital. This condition will continue as long as legislation continues to reflect the ancient, and
originally correct, doctrine that
railroads are a monopoly.
builds
of
aspects
in1hat
(2) Our shippers of bulk and
^^fyp^and I'ad UaTes ™ ^ItTstooinTa™ mer'c^n't
a" royaUytasis6 ^rther 01f and other in non-rail staple commodiues aretocaughtex- tj
e.xpect®d efl"
incom.®
in _hmi1,.„nnpr_^_ that, perhaps, marine policy by the agencies
t
p t
royalty oasis. from
tightening squeeze
the
whole litr-J^A A^ith
to
out
on
iust
just
heen
from
and
h
cars
crushed
a Gf labor contracts which stem, in
develop-, manv instances ~from conditions
arrested
^d^antage of the diesel
its
of
well
as
ba„
major concerns on a
hpvine
naving
of
case
largely due to
the
nrooortion
tjlis
these
P
present
road
being
as
fact
the
shoos
its oil lands
men!
Rations
for
illustrate
Tp
our approach to the transportation'
problem from very recent history
Hanspori
nrcScnt
railroads
^raTo"haTSldS tobe^n
more
What appeals
radr'nad.
°ur
pa
on
*
—
Studies in Segments
*
those bureaus of the Federal Gov-,
-sayet mycneiciife
e hs
1946-M period
tue
persistence,
and
Onr
tragic
Transportation Ratio has
s
we
tionships of tne various aspects
0l our transportation world,
yave &?ne through a^ revolution- (Cheyenne to Laramie, about 50
lotive
gajn in motive |power at the cost of miies—l" hr. 20 m.)
36%
a
our.
inteirela-
the
agency
handling has
train-hour
held under 40%
0Wn
the
the
I
class
to the imagination of the investor
is the growing importance of this
road's
'«»
been
N ort h e
re"presente5
19g5
the road
quality.
from
its
of
'
'
of comparable
even
ratio
normal
more
to recognize
coastal trade and deprived us of matters, culminated in 1953 in an
tbe advantages of .the low poit- air'policy report which received
*5 ' to"port cosls of the ocean-going a measure of endorsement from.
to. ship.
the President.
"fen^and^maktat
(1)
P!„L
limited
the
lor*
even
to
To:; (8) In .ra^ot^.and wa^i.(2) On the same day
notice only some of the more outoperating inflexibilities two separate and unrelated efforts^
standing
f th
problems sup-' a?d r«straint upon tbe adoption, to secure policy recommendations
a
long list
'
°.f mode.rn equipment and facili- in the transportation 'iieid, were
m
ooerat-
!"_.«* °ver;a>L
efgh"
rna8r,h;ucle
The 53 930 gross ment from financial
efficiency.
The current price of 41%
in
to-
seem
As we survey the transportation
scer>e today we see a wide variety
nn'th h*"«;in/k "whirh proach, the Northern Pacific has
,
low
we
of car&0
<"
P P
le^ls' However, in
patfd
the moment. And
fail to find reasonably permanent
refuse
' much of our coastwise and inter-
more
of the
road's earnings that is represented
high
each"
as
advance in ships and the high cost
*
Problems
direction,
it
held.
for
preference
situation is also
has been slow to dieselize in spite oustry.
of the fact that it was one of the
Transnort
with its first installation in 1938.
the following The $30 million capital
budget
present price for 1957 includes $14 million for
the
about
weak-
extreme
and
11
sharply
to
level
the
in
Feb.
separately
which we turn
thoughts—perhaps inevitably
not entirely, for the road's own causing concern. Throughout this the growth of traffic and by the
use.
With the progress* that has Period, however, no major seg- strong trend to ever larger tows
seen
in
the
exceptionally good been made in dieselization and mejU of our for-hire or commer- beyond the capacity of their govprice behavior of Northern Pacific/the
heavy
reduction
in
coal Clal transport except petroleum ernmentally provided facilities—
stock
in
the
midst
of
genera? "sales" to the parent road, there Pipelines has been reasonably particularly their locks and terweakness during the past montn. is
little further reason for the Profitable with consistency.
In minal facilities. _ .
At the present price of about 41% separate existence of the subsidi- Jhe postwar period a struggle to
(7) Many of our ocean ports
this stock is down only 5% from ary as a purveyor of coal.
*
keep ahead of inflation has been labor : with - incredibly - obsolete
its
1956-57
high of 45, or less
Because of its supply of low- required which is without parallel piers, wharves and docks that
than
one-fourth
of
the
correcost coal, the Northern
Pacific 'n any other major line of in- have lagged decades behind the
average.
elements
solutions
strong
spending decline
Thursday, February 28, 1957
problems
preference of the
market for ' growth situations" is
the
.
ous
M
Unified
NORTHERN PACIFIC RAILWAY
The
.
happens to be sufficiently troubles
some
to
gather public attention
Railroad Securities
Bv
.
Burlington and "SPS"
-This
air
-traffic
control
facilities
and
of breadth in our efforts to chart
our
a
fact
,
Volume
185
Number 5616
.
The Commercial and Financial Chronicle
.
fall short of
answering the more, do independent of government
important questions of the present
,and oh industry alikeY. A number
the controversies over of important studies have
been
#_ J| rj;
vlluRSOIIUaiwU EQIS0I1
—-witness
the
of
portation and
the
over
usefulness- problem
Of available data for the
ipent of
qf
measure-
efficiency and the
a
velop
i
t
.
i_.
Transport
covered
is
a
moderate amount of statis-^ utilize in
Ucal information is collected
only resources
lroni tne Class I carriers
what
carriers,
hguled
for
have
we
the
Class
commodities
what
or at
About
recently
even
,
I
i
headed jointly by MorStanley & Co. and The First
Boston Corp.. will purchase any
Committee,
15,1957.
stir in the transpor-
industries
than
for.
has
The
many
,aftpr
past, the time is perhaps
particularly ripe for independent
years
car-
rjed, for what distances, at wnat
re-examination. X
rates
A
transportation
sample
for
these
of
spnie
basis
least
at
has
not
what
to
to
census
matters
has
10
been
a
talked
of 4
it
Halsey, Stuart Group
Equip. Tr. Cifs.
associates
Western
much
the
on
more
complete
inau
quate
t.hp
the
trust
» *
V«
1
I
—
and
the
is
same
sphprllllprl
scheduled
air
1
true
are
offering today (Feb.
numnre
bank
Ry. Co. 5%%
equipment
maturing '
certificates,
utility
certificates
1956.
an-
scaled
are
to
-ionf
sidiary
tion
are
know
In
degree
locomotives
we
little.
the
sphere
about
$1,907,143.
know
the
much
relation
too
of
little
multiple
mated,
engaged in
the
.on
levels
and
formed
loads
about
and
the
of
frequencies
•
we
the
vehicle
upon
axle
the
up
of
h. .such-
helpful
a»
f
to
100%
•
-
•
.
first
our
and
Co.
Sc
R-.
an
lit 1.1 j
■
di
1
■'
denture
I
T*5
for
names.
1958,
amortization
no
sinking fund provisions.
the
juu /o
«uu
civ--
His
values
11
was
don'f think
my
oi
have
sold
Joe
break
recently,
Joe
if
I thought he should sell anything
and I gave him my opinion. He
said he agreed with me. He wasn't
worried. He
was
for
and
income
what
he
these
asked
and
me
still
an
he'd
owns
now
me
investor
with
stay
long
as
as
remained* the
companies
it could be improved.
of the best selec-
one
tipDS * Of CliVGrsiflGd
rGtirGiHGIlt
income, stocks I have ever seen.
He looked at
somewhat in
me
half smile
a
face, he replied, "You
din§
that
I
I
as
when
vestments
his
on
kid-
you?" I said that I
serious
as
it
could
would
ever
be,
his
was
Joe's
over
But
make
never
wished
Joe
told
my
some
invest
to
her
has
account
that
period
has
Joe
netted
in
$60.00
a
I
of
me
commissions
several
years.
lot of good friends
a
and they don,'t own the very best
common
stocks
Get the
does.
in
America
he
as
point?
Bankers Offer Potomac
Electric Pow. Pfd. Stk.
Dillon,
Read
Co.
&
Inc.
and
Johnston, Lemon & Co. headed an
investment banking group which
offered
000
yesterday
shares
stock,
of
(Feb. 27> 300,preferred
serial
series
$2-44
of
1957,
of
Potomac Electric Power Co. at par
($50 per share) and accrued divi¬
dends from March 1, 1957.
The
proceeds
from
the sale
of
J-bfse shares, together with the
balance of proceeds from a recent
sale
went
we
gether
at
me
that she had
she
O. K.
exactly
in-
to
came
jokes."
Then
telephoned
that
"income".
for
sur
are not
,
me are
was
and
funds
me
and
out
to
lunch
talked
we
to-
of
principal
$30,000,000
of
amount
debentures,
after
8ooroxtaateir«2
while
a
ap-
000 000
'^ f
i
Rockawav
x
District,
Pasi Six momns a customer s lepresentative for one of the firm s
where he occasionally spent
time
visiting
with
his
some
reared
toe" FlSt ^anl "tW^ h™"1?? ^"h'^Vr''100!?
ine
"mst
inirn
'n
in
« i
again, but for the life
any
and^ in "Westchester County 0x7.
..CPptins
hor^e?,stern portions;
r5ronx>
knew
couldnt say any^
sa '
cou*d
cHld gO OVG1 It 9.§3.ill
r
The in¬
I
That
own.
prise and with
15,
best
IT
You have
.
contains
could
*
+
redeemable
rai?f_in?_ f^°,m
prior to Feb.
the
everything.
the
were
!n8t5!sef
T3K6 tfllS llSt
Common
are
,u.
dvjLdt t n
*
hold
to
man
•
will
$30,000,000
in the last year.
ceptmg
AfflH
managers
in
t h
by
PlP-111^011! an«T
0*0fa^ which
; gas.
market
telephoned
agreed with,
^a^..fj ^T.?nmu^0iC^S
any
present,
'''"e^iriCuS«ViCAin jhe Bo™u",hs
-
.
Eachs
of
.
redeemed
or
«* W. Pressprich .investment, Joint
& Co. are hankof
i-rtiiumg
tests
during
he
made
nothing I could do but
was
him
and
.
.
dplf'man,
sub-
Consolidated Edi$on sunplies
,
.
,
arguments
guidance
'•IJJinois
L
,fll
to-'
weT S™nrn"ap/ ^V;fsidy
providing
well
had
stocks
esti-
conditions,
Thp debentures
Debs,of Daystrom
and
pavements
o u g
n
tell
less than
Qffgf
speeds
kinds, a 11 h
knowledge would be
clearing
of
viewpoints which I
expressed
other
there
1,
COli""
lO
WOO,003
..'
.
McMaster Hutchinson & Co.
ill
are
effects
various
Ward
'
is
JO
\
,
cost not
to
*
it
the
office and said
being a likeable fellow it
long until we were calling
construe-
a
basis
;•
being made of high-
uses
In particular
ways.
I
and
lq(-7fhrnnaH•
prich & Co.: Freeman & Co.; and
highway
design standards and costs to
look at i~.-_
his
a
wasn't
inxmlirn
invft1vo
Associates in the offering are:
Uick & Merle-Smith;. R. W. Press-
purely engineering
we
and
talk
to
Dec.
its
and
company
Mill,.
W llJltLJiA
program., which
v*v
Si^eSr^d^lteWW-
12'
in
additions
after
or
-fr,
hrpp
some
on
ject to
but
transport, about which
cargo,
*
to
for
payment
The
price
from 4.75% to 5.50%, according to maturity. Issuance and
sale of the certificates are sub-
n o
and
took
we
Some of the
held
aggregating ap¬
$43,000,000 incurred
the' authorization of dhe ?>5qr 0^n'n
tilGre15v
a
ffrnw; i
amAimt
"
Tntprcioiia
PAmmiccinn
there
is
a
growing amount "of^Interstate rVirrrm
Commerce Commission.' 111^Jay000.000
for
private aircraft operation in per-'
The issue is ta be secured by
sonnel,
be
notes
plant
I
friends
and
investments.
the
will
debentures
of
the payment of short-
to
toward
yield
for
air; carriers,
sale
time
leaders in American industry. Just
last week another ope of his
each
•
•»
_
the
that
investment but his friend has
an
excellent client. During
been
office
into
in connection with the interim fi-
nnoiiv March 15r 1958 to 1972, inelusive.
The
trucking activities. Our statistics on pile lines
are, by contrast, reasonably ade■
from
he
Since
one
received. We arranged a conference and one day he came ta my
matll,.,fv
'■
stock at $45.45 per share.
proximately
28) $1,335,000 of Chicago & North
unregulated
flTTITIAtt
imtn
redeemed
When I looked at his list
likely that only 10% of the busi¬
ness is regulated and our informatjpn on the nonregulated portion
not
applied
ret*remenf 'from the income
convertible
are
1Qfi7
i
Proceeds
term
•
nreviouslv
"
March
on
mem-
see me et..my office. He said he
had a few common stocks he had
bought years ago at much lower
levels and he was now living in
the
at
"
-
convertible
With inland water transport the
case is
possibly worse, since it is
is
Tl]n„
common
God-
Offers
the
requisite
underway.
get
wish you
get at
upon
but still
years,
mustered
support
reasons.
,
.
debentures
unless
Speed!
or costs or for
debentures
of the
one
bers.of the association came up to
me and asked if he could come to
a group
termination of the offer
talk
a
of retired
group
a
period,
answer
gan
unsubscribed
tation
vague esti-
some
ipptes. We know not what is
a
I made
ago
investments and the economic
people and, after the question and
,
view to making a relatively massive attack upon the problem. As
more
years
outlook before
created
remaining
63% . we
nothing —not the number
carriers, of vehicles or of ton
Some
on
held of record
at +be close of business on Feb. 25,
1957.
•
V
the Cabinet
the
miles, except for
with
Of Good Securities
stock
common
report of the President's Advisory Committee, usually called
kpow
of
.institutions
of
Although He Owned $250,000
of
the
are
levels,
revenue
as
available
number
among
known,
far
so
By JOHN DUTTON
Joe Was Not A Customer
of debentures for each 25 shares
a
would
possible the
in a goodly
which
proposal
and
not
at
has come forward with
no one
by ICC regulation „broader
that 37%. Until
spe-
underway
are
Securities Salesman's Corner
.
York,
Harvard, at Stanford and at other
institutions. But up to the present
apout 37% of the intercity truckmg
studies
•
Consolidated Edison Co. of New
Inc.,
is
offering
today
(Feb. 28) to its common stockholders rights to subscribe at $100
for a maximum of $54,827,500 of
4^% convertible debentures, due
Feb. 35, 1972, on the basis of $100
de-
to
transportation' research
a
cial
that only
appear
■
being made at
University
-■
f|ffffc|'A|| XfftPlf hftfflorC
*
®
prog-
try-wide support. Significant
About most motor
freight transportation we know virtually
nothing. It would
in
are
"■
-(jOVIVGIftlllld U6u6lltlll'GS
and teaching center with indus-
.
and inland Water
is
effort
Northwestern
control
operations.
TVi.oir
An
ress.
others
and
1
a
deficit, over the ;madeir\the universities of certain
conducting freight trans- aspects of the transportation
passenger,
costs
(1023), 35
ann
hoard
•.
had
—£
rev^nUewas derived from salesof
offering represents.the first public ,e;ectricltv;'about lp% from sales
financing by. the company in more oF crqs and some
from sales of
tban
years.
steam.
The debentures will be convertDuring the year ended D«c, 31,
been
telling
him
that
—»
v-
ferred stock theretofore outstand-
ing,
will
be
together
used
with
other funds of the company to pay
b^urse^tsTeasury foTa'portloh
through
Dpc.
4,31,
1957
will
ag
whether his stocks went up or gregate about $46,000t000.
that he only wanted his
The company furnishes electric
Clearly, if we are to devise a
income, and he had such tremen- power to an area of approximately
"wise transportation policy for the
dous gains that selling out and 643 square miles, having a popunation at least the more important
.
buying back just uma not seem Nation of about 1,460,000, comprisdid Vk'
revenues
to be worth the risk and the effort tna fho ^firn ni h.A nf'rni„mhi3
gaps in our knowledge must be
iWe nnor to maturity, unless pre- 1956, .. total
ooeratin
ing the entire District of Columbia
amountcH
tn
<yQi
iilled. And an enlarged stock of viouslyredeemed, into three shares amounted to ^522.53^.000 and net involved. I agreed with him!
and portions of adjoining counties
information must be
of
common
strmk for each " $100 iucome
to $53,398,000, equal to
in Maryland and Virginia.
analyzed in
such a way that it is
principal amount. "
$.2 ?0 per share of common stock.
Objective Income
For the 12 months ended Sept.
brought to
bear on the question "What kind
Net proceeds from the sale of This comnares with total operatHere was a man who did not
30, ,1956, operating revenues of thp
strengthen
may
our
u r
e r
understanding.)
.
cu-ed interest, to
vmld 4.75%. The
down:
u"1'
J:i1«-i
of
.
America
sprve
if
rrof
we
j
„
transportation
a
r
a
it?"
get
Howard
system
best
In
Freas
,
of
tention
to
the
would
can
address
that, such
need
with
cial
the
study
corporate
be
„i
for:in^ revenues of $493,620,000 and
used
in-
purposes,,
want to trade or make any more
npt income^of
320,000, or $3.12 capital gains. He had a living inshare, for 1955.
come that was sufficient unto his
per share, for 1955.
—Der
'——a
eluding proposed expansion of the
called
and increased working capital.
at-
much
undertaken
and
finan-
backing of all elements of
industry.
excellent
will
debentures
general
,i
„
company's manufacturing facilities /- Consolidated
for
cooperation
transportation
an
be
the
:„,
Interstate
the
deeper study of our. present transportation problems and proposed
,
j
j
.
_j
recent
a
.
how
and
Commerce Commission
.
.
proposal.
This
I
the
is
is
would
'
dividends
The debentures will be redeem-
on
Edison
has
paid
its common stock in
each year since
1885
begin-
and
ring in 1954 quarterly payments
have been on a $2.40 per share
be-fnnualr basis. The most recent
ginning on March lr 1963, at 100%, dividend declared was a quarterly
plus accrued interest in each case, dividend of 60 cents per share
Daystrom Inc. manufactures and n^^ble March 15. 1957 to stocksells a wide variety of electrical, holders of record Feb. 8, 1957
able at optional redemption prices
ranging'from
104%%
100%,
to
and through the sinking fund,
however, the extraordi- electronic, mechanical and electroimportance of securing con- mechanical equipment and com-
ditions
leave
for
such
little
as
study ,/which
room
as .possible
a
fpr questioning of the motives of
those
chosen
to
carry
out
the
work
and
as
little
room
sible for cries of bias
for if any
changes of
proposed
are
or
as
pos-
prejudice,
ponents; Current sales of the
pany
by
are
such
metal
fleeting
company
It
'in
may
some
r
-
J."
_
fashion
11
and
.
CHICAGO,
by
111.
—
George
E.
re-
many
to the electrical-electronic
equipment industry.
the-eight
months
30,,1956, the
company
and its
*
•
i-
i_
l
consolidated
44
1
net
sales
lu.i.j
of
J.
$46,r. J.
-.
Wall
i
picture for
him
of
common
s
a man
Not
Street,
r
j_i_
.
New
xt
York
x T
i_
Citv,
i
1
-
Speer Opens
—
SMITH, Ark.
business
Robert L.
a
securities
conducting
.
from offices in the Mer-
cantile Bank Building,
in¬
ocks
a
M. M. Zook
bad
of 63 and I toid
Opens
-
WASHINGTON, D. C.—Maurice
M. Zook is
engaging in a securities
so.
Still
Joe
Ilis
from
business
Has
Common
Good
Twentieth
Stocks
offices
1110
at
Street, Northwest.
Several years have passed. Dur¬
Six
friends.
brought
wholly-owned subsi: iaries showed
.
type,
savings accounts.
Joe's
Effective , March
1
the
firm
name of Carmichael and Carson,
r.
$250,000
diversiiied,
g
ing
La Frence Carmichael
ended
that
up
quality,
R. L.
FT.
this period 1 hjave had tne
opportunity of meeting several of
pany.
years,
Nov.
be that the^ universities
and
Springer has become affiliated
the "7ith White, Weld & Co., 231 South
from the graphic arts La Salle Street.
He was previw! ich- constituted sub- ously with E. F. Hutton & Com-
business,
to
Foundation
cooperative
T
15%
stantially all of its sales for
tend
For
'
and
the year 1955.
with $25,000 of government ben^s
rSoecial to The Financial Chronicle)
85%
plastic furniture,
the
transition
of
will
s;me interests in this complex field and to benefit others,
or
products
and
backed
he
vestment
White, Weld Adds
com-
about
consequences
thev
hurt
University
represented
didn't want any investment
problems. HE JUST WANTED TO
BE SURE THAT HIS INCOME
WOULD CONTINUE. That meant,
first of all, that his capital should
be reasonably secure. Incidentally,
operating revenues of $57,754,739
and net income of $8,457,369 for
He
highest
suggest,
nary
needs. His home was owned without a mortgage. He and his wife
had ample income for their needs,
*,««■»
$62,601,634 and net
income $9,283,727, compared with
¥Vtlt
company were
a
man
this is the way
This is
what
.
one
he
Tu
^
months
ago
DENVER,
my
fellow who tells
thinks will be best
fi —4
(Special to The Financial Chronicle)
he
office and
he introduced him,
to
With Allen Investment
4irv,n
K
1
you
for
Colo.
—
Wanda
J.
Boden, Kenneth K. Hoehner, Ervvjn Koch and Richard C.
,
have
'
MuJ*x>y,
ioined the staff of Allen
J
Mile
High
36
Commercial and Financial Chronicle
The
(1024)
.
.
Thursday, February 23,
.
★ INDICATES
1937
ADDITIONS
-
'
Now in
Securities
New
9,000 shares of common
Price—At market. Proceeds—To three
Office—Pinellas International Air¬
port, St. Petersburg, Fla. Underwriter—None.
stock
(letter of notification)
(par $1).
Dec.
Feb.
None..'
apolis, Minn.
Sherman St., Denver,
Underwriter—Lackner & Co., Denver, Colo.
:
901
—
Federal
American
Finance Corp.,.
Feb.
per
Fain is President.
'
to
its
filed
be offered
under
★
American
Jan.
filed
14
'
,
Gas
Natural
442,114 shares of
reduce
the
&
Marquette Ave., Minneapolis, Minn.
H. Bishop & Co., Minneapolis, Minn.
Bayless
Feb.
filed
of which 50,000
pany
To
shares
and
stock
Lehman
com¬
Brothers, New York.
American
Feb. 15
cent).
Provident
Paul, Minn.
Office—Dallas,
purposes.
ceeds
program.
Proceeds—For improvement and
Underwriter—Hallgarten
;v
•
.
•
...
&
★
New
amendment.
18 filed
$50,000,000 first mortgage bonds, series
Probable bidders: Halsey, Stuart
■
.
Boston Corp.;
at
named later.
Commonwealth Investment Corp., Sioux Falls,
Jan.. 14 filed
•
$1).
499,400 shares of common stock (par
share. Proceeds—For working capital to
expand company's business and operations. Underwrite*
•—None.
*
24 filed
Jan.
./
Power Co.
Connecticut Light and
,
/ ,r, 1
(no par)
,
927,598 shares of common stock
being offered for subscription by common stockholders
record Feb. 11, 1957 on the basis of one new share
of
program.
Carolina
Telephone
&
Telegraph
(3/11)
Co.
subscription
by
common
stockholders
,
record
of
★
March
11, 1957 on the basis of one share for each four
shares held; rights to expire on March 27. Price—At par
($100. per share). Proceeds—To reduce bank loans and
for
new
construction.
Underwriter—None. :
*
center
sites
and
a
Penn
Fruit
Underwriter
—
Blair &
Co.
Incorporated, Philadelphia
filed $54,827,500 of
AVi% convertible debentures
debentures
of
for
each 25
for
construction
ley
&
York.
Co.
■/
and
program.
Chicaop
-
>
...
■
all office*
.
Corp., both
•
,
.
"
of New
•
.
?
:
Mich/"(3/6)
549,324 shares of common stock (no par)
to be offered for subscription by commPh stockholders
of record Mafeh 7, 1957 *at the rate of one new share for
each 15 shares held; rights to expire on March 22,< 1957.
>Employees may/ enter subscriptions for unsubscribed,
share.
Price—To be announced on March 4, 1957 (ex¬
Feb.
"
'
„
New York. Latter has agreed to purchase an addi¬
13
filed
.
not less than $4.50 per -share below rthe
market price at time of offering. Proceeds — For con¬
pected to , be
struction
program.'
Underwriter—To be determined by
competitive bidding. Probable bidders: ,Kuhn, Loeb &
Corp. (3/12)
v;' //j 1>\*
Feb. 11 filed 690,000 shares of common stock (par $5);
Co. and Laderiburg/ Thalmann & Co, <jointly); Morgan
Proceeds—To repay bank loans and to purchase, addi¬ ,/Stanley & Co;; Lehman Brothers; Harriman Ripley &
Conine, and The/First Boston Corp. (jointly)^ BldSr-^'b
tional common stocks* of Central Power: & Light Cov
Public Service Co. ..of Oklahoma and Southwestern Gas
be received up to 11 a.m. (EST) on March'6 at office ,b£
& Electric -Co. Underwriter^—To be determined by corn Commonwealth Services, Inc., 300 Park Ave., New York,
N. Y..
•<
v.
petitive bidding. Probable bidders: Blyth & Co., Ine;,
.
.
shares", held;
Consumers Power Co., Jackson,
...
.
common
Underwriters—Morgan Stan¬
The First Boston
Central & South West
Cleveland
;
rights to expire March 15, 1957. Price —At oar (flat).
Proeeeds—To retire about $43,000,000 of bank loans and
tional 300,000 common shares and reoffer them to per¬
sons selected
by it at $1.10 per share. Offering—Date
indefinite.
^ittsburgh
I
k
.
>
,
15/1972, being offered for subscription by com¬
stockholders of record Feb. 25, 1957, on the basis of
$100
super¬
develop shopping eenters at the seven sites* and to
acquire and develop additional sites for Yelated real
estate activities, and * for* general corporate purposes.
and
1
mon
About $4,100,000 will be used to acquire
shopping
^.
.
due Feb.
Philadelphia, Pa.
July 30 filed $8,000,000 of
sinking fund debentures
due Aug. 1, 1971, and 1,600,000 shares of common stock
(par one cent); subsequently amended to $4,509,000 of
debentures.
Price
To be supplied • by amendment.
/Proceeds
Underwriters—None.
Consolidated Edison Co./of; New York, Ine,
Feb.
Centers Corp.,
to
•
la.
Price—$4 per
market adjacent to one of them; the balance will be used
to
or
' /
*
for
seven
Private tVires
received
111., at
before 10:30 a.m.
Feb. 15 filed 58,310 shares of common stock to be offered
:
San Francisco
& Co. Inc.; The First
Glore, Forgan & Co.-Bids—To be
1820, 72 West Adams St., Chicago 90,
(CST) on March 12.
Room
for each seven shares held/xights to expire on March 6.
Price-^$16.50 per share.
Proceeds —For construction
★
.
Boston
>S,
1987. Proceeds—For construction program.
Underwriter—To be determined by competitive bidding.
—
Philadelphia,
For
—
due March 1,
—
Appalachian Electric Power Co. (3/19)
Feb. 13 filed $29,000,000 of first mortgage bonds due
March X, 1987. Proeeeds-r-To repay bank loans and for
construction program.
Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.;. Eastman Dillon, Union Securities & Co. and
Kuhn, Loeb & Co. (jointly); The First Boston Corp.;
Harriman Ripley & Co. Inc.
Bids—Expected to be re-
NewYork
Proceeds
(3/12)
Commonwealth Edison Co.
inventories; and for working capital..Busi¬
ness
Transport refrigeration equipment. Office—947
Communipaw Avfe., Jersey City, N. J.
Underwriter—
Fred Kaufman Co., 120 Elm St., Orange, N. Jt
Office—505 Barrow St., Anchor¬
Underwriter—None^
subordinated notes due 1977.
Underwriters—The First Boston Corp.
Kidder, Peabody & Co., both of New York.
and
-'
.
(2/29)
Commercial Credit Co.
working capital.
for increased
.
bidding.
Feb. 20 filed $25,000,000 of
-
ministrative expenses.
Alaska.
Underwriter—To be determined by compdfiProbable bidders: Halsey, Stuart & Co^
Inc.; Dillon, Read & Co. Inc. and The Ohio Co. (jointly);
Lee
Higginson Corp. and Salomon Bros. & Hutzler
(jointly); Eastman Dillon, Union Securities & Co., and
Glore Forgan & Co. (jointly). Bids—Tentatively sched¬
uled to be received up to 11 a.m. (EST) on March 5 at
City Bank Farmers Trust Co., 2 Wall St., New York, N.~Y.
($1 per share).
.
»
program.
tive
Feb.
,
(3/5)
$16,000,000 of. first mortgage bonds due 1987;
Proceeds—To reduce bank loans and for construction
Feb. 5 filed
Price—To be supplied by
Cargo Cool Corp.
V
' ..
(letter of notification) 100,000 shares of common
stock (par 10 cents). Price—$3 per share. Proceeds—To
open
and acquire additional truck terminal branches;
expan¬
Co.,
........
,
be
Blvd., Chicago 4, 111. Underwriter—None.
Columbus & Southern Ohio Electric Co.
Jan. 31
★ Anchorage Gas & Oil Development, Inc.
Feb. 13 (letter of notification) 40,000 shares of common
stock (par $1).
Price—$1.25 per share. Proceeds—For
new
equipment; working capital, engineering and ad¬
age,
141 W. Jackson
Pro¬
For equipment, exploration, drilling, working
and other general corporate purposes. Under¬
writer—To
of short term
tion
—
capital
Proceeds—For working capital and for reduc¬
loans. Office—Board of Trade Bldg.,
share.
per
Shore Mines, Ltd., Toronto, Canada
July 26 filed 600,0010 shares of capital stock, of which
500,000 shares are to be offered publicly, and 100.000
Co., New York
Jan. 25 filed 1,734,865 shares of capital stock (par $50)
being offered for subscription by stockholders of record
Feb. 14, 1957 at the rate of one additional share for each
five shares held; rights to expire on March 5.
Price—
sion
(par $1),
for the account
815
par
22,956 shares of common
(letter of notification)
(par $10) to be offered to stockholders on a basis
of one new share for each three shares held.
Price—$13
Burma
Anaconda
13
stock
Underwriter—None.
Price—At
Underwriter—Landau Co., New York.
York, N. Y.
Feb.
of
shares to promoters.
—
★ Columbia Malting Co.
shares of common
stock (no par). Price—$60 per share. Proceeds—To two
selling stockholders.
Office—2161 University Ave., St.
Underwriter—Peoples Securities Co., J. D. Grey]
of New Orleans, John S. Tanner, of Dallas, and C
L.
Edmonds, of Houston, three of the 22 directors, are
Chairman, Vice-Chairman and President, respectively.
$50 per share.
New
(par $1).
★ Borchert-lngersoll, Inc.
15 (letter,.of notification)
Corp.
filed 50,000,000 shares of common stock (par one
Price—$2 per share. Proceeds — For working
Tex.
York.
four
Of the 405,000 shares, 395,000 shares
Feb.
Investors
capital and general corporate
(letter
stock
— For
The First Boston
by amendment."Proceeds
★ Colt Golf, Inc.
25 (letter of notification) 50,000 shares of common
stock (par five cents).
Price—$3 per share. ' Proceeds
—For promotion and advertising; working capital; and
"for development of new products;
Business—Manufac¬
ture and sale of golf balls.
Office — 161 East 37th St.,'
notification) 240,000 shares of com¬
Price—$1.25 per share. Proceeds—
For partial payment for plant site; partial payment of
obligation to Memorial Inc. and for working capital.
Office—4718 W. 18th St., Houston, Tex.
Underwriter—
Benjamin & Co., Houston, Tex.
' ■ :
mon
(par $1),
Underwriter—
purposes.
28
Dec.
(3/19)
be supplied
Feb.
($10 per share).
Office—7th St.
stock
the basis of one new share for
rights to expire on April 2, 1957/
Corp., New York.
(3/4-8),
sold
(par $5) to.
by common stockholders of
construction program. Underwriter
Beautilite Co.
common
general corporate
Price—To
Underwriter—M.
common
to be
are
'Industry Developer*,1
V'" v:
*
.• ;
•—
"'•••..
on
shares held;
3V*
each
public and 10,000 shares to em¬
ployees, the latter without underwriting. Price—To pub¬
lic, $10 per share; and to employees, $8.75 per share.
Proceeds—To selling stockholders. .Underwriter—H. M.
Byllesby & Co., Inc., Chicago, 111.
Price—
supplied by amendment. Proceeds—For working
be
430,000 shares of
Inc.
1957
record March 4,
to be offered to the
are
and 150,000 shares for selling stockholders.
capital
Markets,
405,000 shares
Stock Option Plan.
(jointly).-
to be sold for account of
are
filed
J.)
''■>-*
for subscription
offered
"be
selling stockholders and 25,000 shares are reserved for
issuance
pursuant to company's Employee Incentive
latter
200,000 shares of
(A.
Underwriter
..r
★ Colorado Central Power Co.s (3/19)
filed 74,175 shares of common stock
of
with funds to repay or
$25,000,000 of bank loans. Underwriters—White,
27
12
which
of
stock (par $25)
★ American Photocopy Equipment Co.
Feb.
general fund.
:
-Feb. 27
...
Price—At par
shares:
Inc., Rainier, Ore.
Plywood,
'k
fnc.
Inc.
Dec. 31, 1956 on the basis of one new share for each
Proceeds—To be added to
Chinook
operating capital.
Distributor—Automation Development Secu¬
shares of old stock held.
,
common
WeJd & Co. and Drexel & Co.
' /
•
A
—
providing
•
preferred series C stock to be offered to holders of series
prior preferred and common stockholders of record
common
being offered for subscription by common stockholders
of record as of February 27, 1957, on the basis of one
new share
for each 10 shares held (with an oversub¬
scription privilege); rights
to
expire on March
14,
1957. Price
$54.50 per share. Proceeds—To purchase
common stock of Michigan Consolidated Gas Co., a sub¬
sidiary,
->
(Commonwealth of)
Shares, Inc.
1
*
Dec. 27 (letter of notification) 30,000 shares of 6% prior
Co.
"
'
>
,
Sept. 4 filed 200 shares of common capital stock. Price—
;At par ($3,000 per share): Proceeds—For acquisition of;
a
plant site, construction of a rpill building, purchase
and installation of machinery ^nd equipment,' and
Underwriter—
Bank
Price—To be supplied by amend¬
working capital and general cor¬
Underwriter—Goldman, Sachs & Co.,
*/'.'-
■
rities Co„ Inc., Washington, D. C.
the company and
Purcnase Plan.
Stock
1957.
purposes.
New York.
St., Dover, Del.
.-r;-'
■.
ton, D. C.
Proceeds—For
porate
State
-
*
Price—At market. 'Proceeds—For investment.:
(par $1).
($50 per share). Proceeds — For;
Offices — 103 Park Ave., New York,
At par
S.
129
and
8,000 shares of common
Automation Development Mutual Fund,
$20) to be offered for subscription by common
stockholders of record March 20, 1957 at the rate of one
new
share for each five shares held; rights to expire
April 3,
.
★ Century Shares Trust, Boston, Mass.
Feb. 26 filed
(by amendment) 100,000 Century
,
stock (par
about
—
(CST) on March 12.
Farmingdale, N. Y.
6% debentures. Price—
90%' of principal amount/ Proceeds—For research and
development; expansion; equipment; and other cor¬
porate purposes.
Underwriter — None. * t
\ f .
/
Underwriter—
: '
V.
'
-
Harriman Ripley & Co. Inc.
Aug. 27 filed $600,000 of 10-year
(3/13) ;
*
Feb. 21 filed $20,000,000 of 15-year bonds due Match' 1,
1972. ' Price—To be supplied by-amendment.
Proceeds
—Principally to refund $17,114,000 of 3% bonds which
mature
on
June
1, 1957 and for improvements, etc.
Underwriter—Morgan Stanley & Co., New York.
\
(par $10)
stock
★ American Laundry Machinery Co. (3/21)
Feb. 27 filed a maximum of 110,244 shares of
ment.
..
-
*
Century Controls Corp.,
Aug. 24 filed 300,000 shares of common stock. Price—At
market.
Proceeds—For investment.
Office—Washing¬
common
company's
Price
★ Australia
'
to eligible employees of
subsidiaries
received up to 10:30 a.m.
to be
44, Princeton, N. J,
(letter of notification)
None.
Killeen, Texas
unit.
100,000 shares of
12
Y.
N.
Colo.
★ American Gas & Electric Co.
Feb. 20
Box
(par $2)
■
working capital.
Proceeds—To purchase used
car paper and to extend the company's operations into
the field of new car financing. Underwriter—None. J. J.
Price—$55
O.
/'
■■
stock.
Sept'. 5 filed 40,000 shares of class B common stock (par
$5) and 400,000 shares of preferred stock (par $5) to be
Offered in units of 10 preferred shares and one common
•hare.
stock
★ Associated Petroleum Co., Inc.
Amalgamated Minerals, Ltd.
Nov. 23 (letter of notification) 3,000,000 shares of com¬
mon stock
(par five cents). Price—10 cents per share.
Proceeds—For mining expenses and development of oil
Office
Corp. of Princeton (3/11)
a
maximum of 8,409
notification)
of
common
Address—P.
Underwriter—Fund
properties.
Y.
(letter
of
REVISED
(jointly); Lehman Brothers and Lazard Freres & Co.'
(jointly); The First Boston Corp. and Merrill Lynch,
Pierce. Fenner & Beane (jointly). Bids—Expected to be;
offered to em¬
ployees. Price—At 95% of market as of March 11, 1957.
Proceeds—For expansion of plant and equipment (25%);
and for working capital and other corporate use (75%).
filed 400,000 shares of common stock (par one
Price—At market. Proceeds — For investment.
Corp., 523 Marquette Ave., Minne¬
14
cent).
25
shares
V
Fund, Inc.
8, N.
★ Applied Science
selling stockholders.
Allied Resources
York
ITEMS
ISSUE
PREVIOUS
Barney & Co. and
Smith,
to 11 a.m. (EST) on March 19 at the office of
& Electric Service Corp., 30 Church St.,
up
American Gas
Florida
19
•
ceived
Inc., St. Petersburg,
★ Aerovias Sud Americana,
Feb.
SINCE
...
Volume
The Commercial
5616
Number
185
J,
(
and Financial Chronicle
<> -.!>
(
Inc.
-'Jan: 17 (letter of notification),; $250,000 of 6% renewable
*
debentures
'—At
*
1
A
Ray Bobbins Co.,* New. York, N. Y:; and Berry
Pa.; B.
?&Co.* Newark*.N. J,r
.-'..J
-•
-
;
;
A".,
■;
:,'
/
;
(■» •
,4#\»
•
;
•
■.
CALENDAB
\
7
"
...
' k
*'
-Great Northern Ry.„_—
; 7
S4.140 G„0
•;
...
ir/ -1 March
•
.
;
American
-Equip. Trust Ctfs.
<Bids flioon ESTi
'•
;
*7 x
••
■;
-
..
:
(Friday
1
*
— To
ahsdrtdmeht.. Proceeds-^For expansion and working cap-;
vAtal./Underwriters/— .Goldman, Sachs" & Co. aid R,
2$k' " *A!
..*/-/«•«/,.•.*• '
.' ■'' '
«pected Today (Feb.
i
^
•
,
"
r.\
•
"
c
^
;
.....
W.7,7PpP'p/:.//
71.390 shares
""
/'ATransition Metals & Chemicals, Inc._—Common
.;Jan. l57filed 600,000 snares of common stock. Price-^At
- ~
^ r r,
Y; market. /Proceeds—For investment. Distributor—Dela- > ?> fY...... i'-//
i'^S^rb 'Di^tributors^inc.^SOO1 Broadway, .Camden, N. J» A;
Vx'V' p.
gr'
mi
'■ - * -Bayless (A.
inYr
cm. s. Gerber;
A
v
,rM
v
-Common
shares
,
-
'
/,',••
.
'
Bond*
:
/
;
;
/_
,
,
r::.ComiBo:u
>
fOfferingr to stockholders—underwritten by Thg.
A- '
.First Boston Corp.) 74,175/ shares' A"
•
,
'
'
.
/(Bids;to be invited) $7,500,000
,
Colorado Central Power Co.
>
.
;'v
.
_
'*•,
-
Savannah Electric & Power Co._r;
„
/"
/■;
.
»
«:jl
r-
j
Common
;
public—^underwritten/by' rae' AA
and
-
•
/
.
First Boston Corp. and Stone & Webster
/ v Securities Corp.) 214,100 shares ,
'
•
...
- ~
*
«
_
Spokane Natural Gas CoY^__YCommoji A'
.......Common
&3.95o,coo
(Offering to stockholders
.
v.".
(Offering to stockholders-—underwritten by White, Weld & Co.)
"
.7
vAAVAA;-7135,315 shares
•*.
"
—
200.000
(Bids to be Invited) $29,000,000
.
.
v
.
i-
,
rH. M. Byiiespy & qq, inc.)
-
;
-
Chicago, Burlington 8c Qulncy RR.—Equip. Tr. Ctfs,
.
-
$5oo.ooe //]i'""•
J.) Markets, Lac.-r
■
' (.Lehman Brothers)
; ;
.
*
'.CorFJ>.^of -America .1$/25-29-w
*Ar
:
Co.) A
\
•.
'
..
.
Notes
A-::
„
s25.ooo.ooo
r ;,
; Y.';;' A';" 'A// '■
Ex-A"' ;NJanmng, Maxwell & Moore, Inc-i--YL iComrrtOn:;'
A A '
/.otfering to Stockholders—underwritten by Ctfark, Dodge & Co:)->': *
v-'^^e^5prf<^^7-GpM^oth.;of New York. Offering
'
Commercial Credit Co....
;.w /(i^e.Fii-fct..-Boston corp. and Kidder, Feabogy
'
(Tuesday)
Photocopy Equipment Co.
Appalachian Electric Power -Co
'v
,
;be supplied by
/tures due Mareli 1. 1977. • Price
;/
March 19
-
February 28 (Thursday)
....
r
-I,Dayslrom,. Inc*.
.//./; ;i.<.
A :Feb. 5 Ailed $8,000,000 Of convertible subordinate debqo-
I C C II C
ISSUE
I V V II C
II C IT
^
.
»■»'*
;
-
,
y y itf
*
.
*'•
•
•
*
-
■
■**«•»
**■*
•; •
A"
,
.
*
^
vtf
», #
^
«'
.
...
(subordinated), payable upon demand) Feb.
1, 1962 or payable (without demand) Feb. 1, 1967. Price
par.
Proceeds — For loans, working capital, etc.
Underwriters — Walnut Securities Corp., Philadelphia,
*
, „
" 7
Consumers Time Credit,
37
(1025)
ommon
-
-.x.
United States Borax & Chemical Corp..^--Common -1
A* (TheVFlrst Boston' Corp.) 150,000 shares' A
-.A A »*/
-
Common
utroi
Bros.>&: Co. and Aiiep. & Co,,: both
*arch 5
P v r.>
=■'?-«
>Feb. l4 (letter of, notification) not to exceed
;
.
,
'
.
'
.
(Tuesday)
'v.
Berkshire
Hilo Electric Light Co.——
;
- lowering to.HCommon
-Common
stxxikhoiders—no underwriting) 51,380 shs.*:'*.
\-ceeds—To reimburse the;treasury for cost of acquisition ^
King Soopers, Inc._^„__i,—,-Commoni \
of shares'on the open market. Office T-rr. 5-th & Liberty
- '
Offering 'to, stockholders—underwritten by Peters, Writer &
A Aveftues, Neville Island, Pittsburgh, Pa.
Underwriter— •:.*A ■
• chtisWnsen, inc.f $854.906
; * "
:A
a; VV2 March 6 (Wednesday)
-"' C:'"
*
^"Dresser Industries, lnc.:(3 14)
"^Consumers Po werCo.--
•'
$20,000,000 of convertible subordinated
debentures'due-March :1^/.197.7.. Price—To be- supplied
by^amendihent. Proceeds—For capital expenditures and
working-capital. Underwriter—Blvth & Co., Inc., New
York. A -V'A A
*
•
'
721'
Feb.
i!
•.
•
'.
filed
..
...
'Y'"
.p'iiy :i'gyl'
Apeb^Yfiie"
.
shfres
30M00
.
,
p^otfigh Co
&
Fischer & Porter Co.2
t
•
cf fhppA
.snares ior eacn
ot-inree new
j
•"
10
iu snares
•
'
Southern
V
T
,,
T
neia.
•
supplied by amendment. Proceeds—For general corporate purposes. Underwriter—None.
"+
Eastern
(Dillon,
f3T,
m
Feb.
:
to
'
be
d
,
Co.-inc.)
&
offered
I
,
of record March 20,
-(Offering
/
corp.)
1957 on the basis of one new share
(with an oversubscription privi-
;
.
Carolina
received
(EST)
Federal
49
at
on
shares
i
(par $1).
Price—At market.
Natural
Gas
Boston.
Dec.
14
filed
5,235,952
common
stock
B
•
'
.
common
The
stock.
offer,
which
has
;
been
accepted by holders of the required 2,435,000 shares of
Pacific Northwest, will expire on March 1
(extended
✓
from
Tan
Feb.
7
(.Bids
f
'
k
'Blyth
-
26
filed
.
shares
150,000
of
cumulative
preferred
stock, series of 1957 (par $100). Price—To be supplied
"by amendment.
Proceeds—For expansion program of
;
Pacific Northwest Pipeline Corp., a subsidiary. Under:
: W#>TH
wtHat
.
'
R?
Cn
Npw
York
wmie, ,wtuu ot v,u., )\iw
.
xuiis..
•
,
''
•
..
&
Co.)
$2,200,000
—_____l_Commori
:____
Alien
and
&
Co.)
:
$2 200,000
•
(Tuesday)
& Telegraph Co
invited) $250,000,000'*
be
Bondit
11:30
a.m.
shares
612,260
Bondj
$6,000,000
EST)
(Monday)
April 1
(Offering
"
Wilcox
&
*
Stanley
«fc
c
Common
fcy
underwritten
535,14.8 shares
Co.)
April 3
'
1
y,
Co
stoclchofdcrs—to be
to
!
—Common
-
Commoi
(Thursday)
■
Columbia
Gas
(Bids
(Tuesday)
Morgan
(Wednesday)
Common
System, Inc
invited)
be
to
April
Common
11
1,500,000
shares
(Thursday)
Mississippi Power Co
(Bids
11
Bond
April 15
(Bids
(Monday)
Equip. Trust Ctfa. /
be
to
s
$6,000,000
EST)
a.m.
Baltimore & Ohio RR
invited)
$3,585,000
.
,
.
(Tuesday)'
April 23
Inc.)
—
200,000
fXA/
shares
.
.
& Film Corp.
General Aniline
iBids
•-
3:45
p.m.
EST)
Common
426,988 A shares
and
Minneapolis & St. Louis Ry
.
(Bids
Marcn 13 (weanesaay)
_
Australia (Commonwealth of)__
——Bonds
•
Y
,Mor^an St»nIey & Co.) $20,000,000 , .
Florida Telephone Corp.—
-—Common
to
be
invited)
1,537,500
.i
B shares.,
Equip. Trust Ctfs. ;
about $2,700,000
Northwestern Bell Telephone Co.—
(Bids to be invited)'$30,000,000
'
Debenture*
-
May 6 .(Monday)
(Offering to stockholders—underwritten by Kidder; Pea':ody &
C(( aJjd MerriJ1 Lynch, Pierce, Fenner & Btane) 128,918 shares-
-
A
'
Co.,
&
■f:★ El Paso Natural Gas Co.
Feb.
A
Babcock
Cp^-——'!—-Bonds A
as dealer-managers) 8i9,ooo shares
Thrifty Drug Stores Co., Inc—i—i_—.Common
■
:
Allen
and
Co.
New Orleans Public Service.Inc
58.310 shares
underwriting)
Jf!
'
"
•
,
&
Bros.
March 28
SY'ltngYof^r"Afaint'
Statement effective
Underwriter—None.
8).
-.
!__Commoii
Houston Lighting & Power Co
(Offering to stockholders—no underwriting)
<Bids io;30 a.m. cst> eoo.ooo shares
Commonwealth Edison Co
Bonds
(Bids 10.30 a.m. csd $50,000,000
Merchants National Bank & Trust Co
Common
(Bids 11 a.m. esti 3,og2 shares
New England Electric System—
.Common
(par
offered
'Northwest
Sutro
American Telephone
Central & South West Corp.—
Co.
shares of
j'
—
.
Proceeds—For in-
in exchange for common stocks of
Pacific Northwest Pipeline Corp. on the basis of 14
shares of common B stock for each 8 shares of Pacific
being
$3)
'
(Monday)
March 26
"
;
^
*
:
i__
March 12
Paso
Co.
&
Bros.
Management Co
..
(Gearhart & otis, inc.) $3 900,000
Pennsylvania RR.
Equip. Trust Ctfs.
ABlds noon EST) $4'.9^000
'
vestment.
El
First
The
est/$12,000,000"
(Bids 11:30 a.m.
* Eaton & Howard Balanced Fund. Boston. Mass.
21 filed
(by amendment) 100,000 additional trust
•
by
i
(Monday)
National Lithium Corp
v
a
5
*■
Goldman,
—Equip. Trust Ctfa. "»•
(Bids to
Minnesota Power & Light
j
Machinery Co.—5_____Commoii
March 25
,>t,
(Sutro
Ulen
Common
Public Utilities Corp.—
Common
(Ofiering to stockholders—without underwriting) 646,860 shares
Feb.
f
;
.
*'
stockholders—no
to
7/ f¥
-J'.
...
Development Corp. of America
General
St., Boston, Mass.,
March 20.
."-/
Telephone & Telegraph Co._____Common
(Offering
'A
(Bids to be invited) $5,540,000
•
.
March 11
,
be
'
shares
.
.
•
p
$50,000,000
stockholders—underwritten by
Sachs & Co.) 110,244 shares
to
V
••
National Ruboer Machinery Co. ______—Common
(Offering, to stockholders—no underwriting) 9,778 shares
Price—To be determined by the Association
on March 19. Proceeds—To purchase common and capital
stocks of Blackstone Valley Gas & Electric Co., Brockton Edison Co. and Fall River Electric Light Co, Under-.writer—To be determined by competitive bidding. Prob'.able bidders: Kidder, Peabody & Co.; Blyth & Co.,.Inc.;
'Stone & Webster Securities Corp.; White. Weld &'C'o.
a.m.
''<•;•/.■;*'
EST)
a.m.
■VA Southern Ry.__A_
'•
(Eids to be invited)
,p
,
.
-'tion agent.
to 11
/Offering
Equip. Trust Ctfs.
Ma„
lege); rights to expire on April 4, 1957. Stone & Web:-ster Securities Corp., Boston, Mass., will act as subscrip-
up
195.312
Southern Pacific Co
for each 12 shares held
Bids—To
,..."
'
..
.
stockholders—underwritten
to
-
89,322 shares -'
-'-LDebentur^i Yf
$3,200,000
,
i
;
•**
_
March 21 "/(Thursday) A '
American Laundry
•
Rnnds
^
$40.ooo,o.o0
March 7 (Thursday)
Rochester Telephone Corp.—
_
89,322 shares of common stock (par $10)
for subscription by common stockholders *
filed
18
4
■
Read
....
(3/20)
Utilities Associates
*
A'
r
Corn
be
*
f
>
Transmission
;
;•
A
Cdj^i^
Foctprn
K
"'Vr (Bids tl
A> Y-A'
■
xcxsb jjaSTcxji i. 13rismission, vorp,.-r.*^—— -—JjOHCis
'Piricc—-To
rnce
xo
hold
.
-
*
Public Service Electric & Gas Co^.—Debenture 1
,
The First Boston Corp.) $15,483,400
of rapital stock (ne. par) to
fnr- prirh
iipw
/;/'A/: /
.
-
be offered,,for subscription by stockholders on the basis
:
-
•
»
*
—/Common
i ^ _ - —'
(Halloweli, Sulzbei;gerv& Co.)
V
>
shares/
underwriting).. 20,000
(Offering to stockholders—Bids II a.m. EST)
A
^
Jorgecsen;(Earle M.) Co.—
j——Common
,,v - .
.yv AcBiyth & Co., inc.) 350,000 shares A, : - '
; .A
Lone Star Gas Co._—
—Y—Preferred
(Offering to common stockholders—underwritten by
•
-•«,
,.v
'
■
tctffering to stockholders—bids 11 a.m. estj 549,324 shares
]i*
Co.__,—__-Commoi..■«
stocliholders—nQ
Eastern Utilities Associates
Common
_
Gas
to
(Offering
r
*. *
'
.
$
-Common
(Offering to stockholders—to be underwritten by The Flrti
/ • Boston Corp:-) approximately 580,000 shares /
..
.
-Bonds
(Bids 11 a.m. est> $i6,ooo,eoo
7
;
Baltimore Gas & Electric Corp
•
Columbus & Southern Ohio Electric Co
>
6,000 shares
<ofcbrtuhon{stock (par. $ 1) to be offered to employees,; A
-Price—At the currents market at time of purchase. Pro- p
^
Vv.-" A t:vT-*. A"Marcli-i.d/<WadnaadayV'
^ n. Fuller .& Co.) si.oooiooo '.,1.
Cincinnati, New Orleans & Texas Pacific Ry.
;
"
;
^ El Paso Natural Gas Co.
f
26 filed 300,000 shares of convertible second
Feb.
Equip. Trust Ctfa.
Montreal Transportation Commission__Debentures
(Shields & Co.; Halsey, Stuart & Co. Inc.; and Savard & Hart,
pre-
Inc ) $9>ooo,ooo
Owens-Corning Fiberglas Corp
stock, series of 1957 (no par), to be offered for
subscription by common stockholders at a ratio to be
determined at a later date.
Price — To be supplied by
^ferred
#
(Bids
,
invited)
be
May 9
,
v.(Goldman, Sachs &
to
—Common
Alabama
^.^Lazard Freres^Co.; and White, Weld
Power
(Bids
about
$2,000,000
•
*•
Bonds
Co.
11
n
(Thursday)
a.m.
EDT)
$14,500,000
1
^™s?rYur^d7Jritef-e^r.e,
Weld
T Co"
New York.
14
stock
(letter of notification) 40,000 shares of common
-
(par $1).
rA
Arthur
& Co.,
(Offering
Haddonfield, N. J.
N- J' Underwriter-
March 14
Ann Arbor RR
(Bid{,
■
Inc.
b3
t0
-
"
8
Lake
(letter of notification)
City, Utah. '
Industries,
Dresser
150,000 shares of capital
stock (par $1). Price — $2 per share.
Proceeds — For
manufacture and sale of molded plastic items.
Office—
100 West 10th St., Wilmington 99, Del.
Underwriter—
Ackerson Hackett Investment Co., Metairie, La. and Salt
Feb.
-
.
.
May 28
(Thursday)
inVited)
National Fuel
"
$1,830,000
.
,
.
(Bids
,
Wrigley
•
'
.
and
(Offering
to
A
:A-AA
/f:.AY
:-A
Continued
page
38
Debenture#
EST)
$15,000,000
(Tuesday)
(Bids to be invited)
Common
1,000,000 shares
Equip. Trust Ctfs.
June
$2,250,003
Common
Inc
6
(Thursday)
Georgia Power Co
stockholders of acf-wrigley stores, inc.—
(Bids
Bond#
"
11
a.m.
June
18
EDT)
-
$15,500,000
(Tuesday)
March 15 (Friday)
'
(Ho underwriting) $250,000
'[
'
"
;
•
—r"
•
\
Southern Bell Telephone & Telegraph
(Bids to be invited). $70,000,000
Bonds
Ford Gum & Machine Co., Inc..
.
on
est)
j,
*
to be underwritten by Allen & Co.)
$2,000,000 of FullyrPaid Plans.
noon
Properties,
Morgan
(Tuesday)
a.m.
June 4
'■
underwritten by
ViFginia Electric & Power Co
$20,003,000
Pittsburgh & Lake Erie RR
.
Inc., Boston, Mass.
Feb. 20 filed (by amendment) the following additional
securitiesu $50,0.00,000 of Systematic Investment Plans
-Debentures
Inc
be
about $200,000,003
Gas Co
(Bids'11:30
Equip. Trust Ctfs.
-
<Biyth & Co., inc.)
.
,
+ Federated Plans,
;
stockholders—to
Stanley & Co.)
N
Esk Manufacturing,
to
./Southern Co
Common(Offering te stockholders—bids n a.m. est) 1,507,304 sharej
,
1
(Tuesday)
International Business Machines Corp.^—Common
(Eastman Dillon, Ur^icn Securities & Co.) $12,500,000
Price—$5 per share. Proceeds—For maehinery, equipment, working capital, etc. Address—Air-
-
May 21
Debentures
Natural Gas Co
Pioneer
En Flo Corp.
Jan.
i
.Bonds
Philadelphia Suburban Water .Co..
A
v
.
...
-
Co.—Debs.
_
.
.
.
'
38
The Commercial and Financial Chronicle
(1026)
Continued, from page
ance,
Nov.
of common stock. Price—
100,000 shares
filed
14
tal.
San Francisco, Calif.
Flakewood Corp.,
($10 per share). Proceeds—For construction of
manufacturing plant and to provide working capital.
Underwriter—None. Robert E.* Evju is President.
At
if Florida Telephone Corp. (3/13)
Feb. 21 filed 128,918 shares of common stock (par $10)
to be offered for subscription by common stocKholders
record
of
March
12:
three shares
each
1957 at the rate of one new share
held; rights to expire on April 1,
subscribe for not more than 3,0/0
Price—To be supplied by
—
To retire $1,500,000 of bank
loans and for additions and improvements to property.
Underwriters — Kidder, Peabody &" Co. and Mer rill
1957.
Employees
may
shares.
unsubscribed
the
of
Proceeds
amendment.
filed
25
Inc., Washington, D. C.
Food Town,
406,638 shares of 50-cent convertible
stock
common
each
for
of
preferred stock and *2% shares of Holly
be
to
are
offered
dors
of
1,016,595
property;
Feb.
Inc.
Underwriter—None.
machines.
Fruit
Juices,
share). Proceeds — For
working capital. Office — 1115 South Washington St.,
Marion, Ind. Underwriter—Sterling Securities Co., Los
Angeles, Calif.
($1
par
per
General Aniline & Film Corp., New
York (4/23)
A stock (no par)
1,537,500 shares of common B stock (par $1). Pro¬
ceeds—To the Attorney Geenral of the United States.
Underwriter—To be determined by competitive bidding
Probable bidders: Blyth & Co., Inc.; Kuhn, Loeb & Co.,
Lehman Brothers and Glore, Forgan & Co.
(jointly);
Merrill Lynch, Pierce, Fenner & Beane and Eastman
Dillon. Union Securities & Co. (jointly).
Bids—To be
received up to 3:45 p.m. (EST) on April 23 at Room 654,
101 Indiana Ave., N. W., Washington 25, D. C.
•
Jan. 14 filed 426,988 shares of common
and
General Credit,
Inc., Washington, D. C.
Aug. 17 filed $2,000,000 of 6% subordinated sinking fund
debentures, due Sept. 1, 1971, with detachable warrants
purchase 160,000 shares of participating preference
stock, to be offered in units of $500 of debentures and 40
warrants.
Price—$500 per unit. Proceeds—For expan¬
sion and working captal.
Underwriter — None named.
Offering to be made through selected dealers.
to
Genera]
Public
Utilities
(3/11)*-*
Corp.
of common stock (par $5) to
be offered for subscription by common stockholders of
Feb. 6 filed 646,850 shares
15 shares
held; rights to expire on March 29, 1957.
(Each holder of less than 15 shares will, in lieu of the
warrant
otherwise deliverable
mailed
to be
on
or
further
for
Underwriter
Proceeds
investments
Beane, New York, will act as
—
in
Pierce, Fenner &
clearing agent.
if General Securities, Inc.
26 filed (by amendment) 50,000 shares of common
stock (par one cent). Price—At market. Proceeds—For
investment.
be
reserved
a
be
(3/26)
—
To
Proceeds
—
For additional
discount department
operation; to increase the number of stores; and
capital. Office—41 Stukely St., Providence,
Underwriter—Bruns, Nordeman & Co., New Yorx,
|
Gold Mountain Lodge,
'
Inc., Durango, Colo.
stock
common
due Dec.
(par $1), and $700,000 of 4% debentures
31, 1975, to be offered for sale in the States
of Texas and Colorado in units of 50 shares of class A
2,950
stock,
debenture.
shares
of
class
Price—$10,000
per
B
and
stock
unit.
$7,UOO
Proceeds^-For pur¬
one
chase of property, remodeling of present main building,
for new construction and working capital.
Business—
Operates year-round resort hotel.
Hilo
Electric
Underwriter—None
Light Co., Ltc:., Hilo,
Hawaii
Feb. 7 filed 51,380 shares of common stock
which 45,320 shares are to be offered for
by
common
(3/5)
(par $20), of
subscription
stockholders of record March 5, 1957 at the
rate of two
new shares for each seven shares
held; rights
expire on or about April 6, 1957. Any unsubscribed
shares plus the remaining 6,000 shares to be offered to
employees, and the balance, if any, to the general public.
to
Price
—
To
be
supplied by
amendment.
repay bank loans and for expansion
program. Underwriter—None.
it Historic Figures,
Feb.
4
stock.
14
(letter
of
Proceeds
and
—
To
construction
Inc.
notification) 500 shares of common
Price—At par ($100 per share).
Proceeds—For
share f0r
be
Maxwell & Moore, Inc. (3/1)
filed'71,390 shares of common stock (par $12.5(J)
for subscription by common stockholders
offered
of record March 1, 1957 at the rate of one new share fdr
each 10 shares held; rights to expire on March 13. Price
*—To be supplied by amendment.
Proceeds—For work-
ring capital and general corporate purposes.
—Clark, Dodge & Co., New York.
reduce
Underwriter
if Marley Co.
14 (letter of notification) 22,220 shares of commoh
(par $2) to be offered to certain employees arid
other specified individuals under a stock
option plan.
Feb.
Hub
Oil
Co., Denver, Colo.
Dec. 18 (letter of notification) 290,000 shares of
stock
stock
common
10 cents). | Price—$1 per share. Proceeds—
leases; for exploration and drilling.
Office—
413 First National Bank Bldg., Denver, Colo.
Under¬
writer—Skyline Securities, Inc., Denver, Colo.
To
(par
Price—Estimated
buy
at
$13.50 per share.
Proceeds—Fdr
Office—222 W. Gregory Blvd., Kansas
Underwriter—None.
working capital.
City, Mo.
Mason Mortgage Fund,
International Bank of Washington, D. C.
Sept. 28 filed $1,000,000 of time certificates, series B, C
and D. Price—At 100% of principal amount. Proceeds—
For working capital.
Underwriter—Johnston, Lemon &
Co., Washington, D. C.
Inc., Washington, D. C.
Price—At
Feb. 8 Lied $1,000,000 of 8% note certificates.
(in denominations of $250 each).
par
vestment.
through
of its
Underwriter
officers
affiliate.
and
None.
—
Proceeds—Fdf in¬
Offering to
employees
this
of
be
made
and
company
Mason Mortgage & Investment Corp.
International
Capital Corp., Des Moines, Iowa
Nov. 29 filed 370,000 shares of common sl<pk (par 10
cents), of which 185,000 shares are to be offeird by The
Equity Corp. on a share-for-share basis in exchange for
Equity Corp. common stock, and the remaining 135,000
6hares by Financial General Corp. on a basis of 1%
shares of International common stock in exchange for
one share of Financial common stock.
Equity and Finan¬
cial
receive
to
are
tional
ing shares of
the
stock
common
shares
18%,000
each
of
if Massachusetts
Life Fund, Boston, Mass.
(by amendment) the following additional
securities: 400,000 units of beneficial interest and
2,000
Feb.
trust
-Nov. 30
owned
by
filed
21
cumulative
establish
five
per
share.
common
stock
Proceeds—To
(par
equip
one
.
ital.
•
and
launderettes and for working cap¬
Underwriters—Names to be supplied by amend¬
one
Development
Price
110%
—
Israel
of
par.
and
pounds
will
Bank,
Jacobs
(F. L.)
Oct. 4 filed
share
11
Cryan Ac Co. and c>arV»ow
Offering—Date indefinite.
Co.
24
nominations
and
of steel and
•
•
Co.,
Douglas Telephone Co.
notification) $295,000 of 6%
of
1972.
Alaska.
Price
—
At
face
Inc.,
r
*
(in
de¬
-
Walker & Co., Provi¬
Proceeds—To pay off short term
(par $1)
1957.
2,500,000
shares
of
common
stock
(par
Price—$1.50 per share. Proceeds—To acquire
Chavin lead-zinc-copper-silver itiine
Statement has been withdrawn.
-
-
•
-
-
-
if Minneapolis Area Development Corp.
Feb. 19 filed $1,000,000 of 4% sinking fund income debentures due March 1,1972, and 25,000 shares of common
stock (par $1) to be offered in units of $40 of deben¬
lands
bank
share of stock. Price—$50 per unit. Proacquisition of lands and for development of
one
ceeds—For
of
.
by common stockholders
and holders of certain outstanding stock purchase war¬
rants on the basis of one share for each share held of
bank
Underwriter—To be
$2,400,000 the
the
Underwriter—Grande & Co., Inc., Seattle,
for subscription
filed
22
tures and
$1,000 each). Proceeds — For additions
Office—139 W. Second Street, Ju¬
King Soopers, Inc., Denver, Colo. (3/5)
25 filed 263,048 shares of common stock
offered
Office—Wor¬
offices.
by
cent).
York.
4
15-year
amount
Feb.
be
H.
located in South Centtal Peru, and for general
corporate
ournoses:
Underwriter
Cenrhart Ac Otis, Inc., New
•
•
•
to
1976.
Cor
Wash.
•
Underwriter—G.
me
improvements.
neau,
Proceeds —For
Minerals, Inc., New York
June
.
•
aluminum products. Office
Calif. Underwriter—Blyth &
Calif., and New York, N. Y.
due
held; rights to expire
share.
per
expected sometime during the first six months of
(letter of
debentures
shares
$25
—
competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Blyth & Co., Inc.
Bids—Three bids were received On
Aug. 1,. all for 4%s, but were turned down. Reoffering is
•
(3/6)
Angeles,
Juneau &
Jan.
three
acquire additional
or
; determined
%
supplied by amendment. Proceeds—Together with
$4,000,000 bank loans, to repay short-term bank loans
incurred for working capital.
Business —r Warehousing
Los Angeles,
Price
loans and for construction program.
To be
—Los
open
bonds due
350,000 shares of common stock (par $1),
100,000 shares are to be for account of the
and 250,000 for selling stockholders.
Price—
and distribution
each
12.
dence, R. I.; New York, N. Y.; and St. Louis, Mo.
filed
which
for
cester, Mass.
$3,000,000 of 6% convertible debentures due
(Earle M.)
—
Michigan Wisconsin Pipe Line Co.
* ■
July 2, 1956 filed $25,000,000 of first mortgage pipe line
Otis, Inc., both of New York.
Feb.
to
or
Co.
Nov. 1, 1966. Price—100% of principal'amount. Proceeds
—To pay short-term loans and for working capitals U11-
Jorgensen
$11 per unit),;Price—$3 per unit, consisting
share and one warrant. Proceeds
For
working capital, to be used primarily to expand business
in the existing 38 loan offices of
company's subsidiaries
debenture stock.
Proceeds—To be converted into
be used as working capital to
lerwriters—McLaughlin,
sinking fund preferred stock,
share of Idaho Rare'common stock,;par
McRae
March
on
and long-term credits to enterprises
Office—Tel Aviv, Israel. Underwriter—Israel
Israel.
one
common stock
(no
being offered for subscription by, class A common
stockholders of record Feb. 15, 1957 on the basis of one
extend the medium
in
to
Corp. 6%
par)
.
Ltd.
Feb. 13 filed $2,500,000 of perpetual 6%
thereof
Merchants Acceptance Corp.
30 filed 40,482 shares of class A
new
Industrial
American
holder
Minerals
Jan
super
ment.
Israel
Rare
mining expenses.
Office—c/o Robert J. McRae, 1704
Gourley St., Boise, Ida. Underwriter—Von Gemmingen
& Co., Inc., 320 North Fourth
St., St. Louis, Mo. (
*
:
,
Duplex Corp., San Francisco, Caiif.
Price—$1
cent).
of
cent at
one
;
Fre¬
entitle
convertible
$10, and
-par
•
.
500,000 shares of
one
(each two warrants to
purchase one share of Idaho
Corp.. will be tendered in acceptance of the Equity
exchange offer. Underwriter—None.
International
Corp., Boise, Idaho
100,000 shares of common
cent) and 100,000 stock purchase war¬
(letter of notification)
(par
rants
Interna¬
mont
Dec.
stock
-
Inc. International has been informed
common
certificates.
filed
McRae Tungsten
exchange for all the outstand¬
stock of Investors Financial Corp.
of Equity
25
•
in
common
and Group Equities,
that 142,000 shares
company
23 filed 5,000 shares of class A voting common
stock
(par $1), 295,000 shares of class B non-voting
new
.
None.
of
Aug.
one
(with an oversubscription privi¬
Price—To be supplied by amendment. Proceeds
:
Underwriter]—
for working
N. Y.
15, 1956 at the rate of
(par $1)
stockholders
common
Manning,
on
Proceeds
subscription by
three shares held
Feb. 3
to
one
supplied by amendment.
for
—To increase capital and surplus.
Underwriters—J. H.
Goddard & Co., Inc., Boston, Mass., and
Thornton, MoMr
& Farish, Montgomery, Ala.
new
share for each 10 shares held;
April 15. The remaining 53,500 shares
to be offered for subscription by employees.
Price—
are
offered
lege).
Securities Corp., New York.
Shops of America, Inc. (3/4-8)
Jan. 21 (letter of notification) 240,000 shares of common
stock (par 30 cents) of which 86,610 shares are being
sold pursuant to outstanding warrants. Price—$1.25 per
R. I.
each
and the remain¬
exchange for 64,696 shares of Van Dorn
stock. Underwriter—None.
of
rate
be
of record Oct.
filed
25
the
at
Gob
store
will
to
ven¬
common
rights to expire
To repay bank loans
domestic subsidiaries.
Feb.
share.
to certain
Loyal American Life Insur. Co., Inc.
.Sept. 28 filed 230,000 shares of common stock
a
be
665,760 shares of common stock (no par),
of which 612,260 shares are to be offered for
subscrip¬
tion by common stockholders of record March 25, 1957
Merrill Lynch,
None.
—
Price—To be sup¬
about March 11.
plied by amendment.
and
him, receive the cash
to
Subscription warrants are expected
equivalent thereof.]
in
if Houston Lighting & Power Co*
! record March 8, 1957, at the rate of one new share for
each
on
will
held;
rights to expire on March 25. Price—At par ($100 per
share). Proceeds—Together with other funds to repay
bank debt of $20,000,000 incurred for construction
pro¬
gram. Underwriter—The First Boston Corp., New York.
35,000
to be reserved for possible issuance at
are
date
Works
shares
of preferred stodk;
of
stock
shares
common
bank loans and for construction program.
Inc.
Price—At
stock.
Iron
To
(letter of notification) 300,000 shares of common
Dec. 3
ing 388,176
future
holders
common
certain finders, 60,000 shares
to
(3/15)
notification) $250,000 of 6% first mort¬
gage bonds due 1962 to 1967, inclusive. 'Price—100% of
principal amount. Proceeds—For machinery and work¬
ing capital. Office—Hoag and Newton Sts., Akron, N. Y.
Business—Manufacturing chewing gum and self-service
Machine Co.,
Ford Gum &
Dec. 18 (letter of
certain
basis; 38,333 Holly
against conversion
—
to
(3/6)
share of preferred stock for each 40 common shares,
for each of the 305,204.52 shares of Mount Vernon com¬
stock/ Of the remainder, 210,000 Holly common
shares
(par $1).
13 filed 154,834 shares of cumulative convertible
prefererd stock to be offered for subscription by common
stockholders of record March 5, 1957 on the basis of one
mon
shares of Van Dorn Iron Works Co.
Productions, Inc.
(letter of notification)
Lone Star Gas Co.
stock
common
Thursday, February 28, 1957
.
Feb.
the basis of one Holly series A
406,638 shares of Mount Vernon
on
the
100,000 shares of 8% con¬
vertible preferred stock. Price—At par ($3 per share).
Proceeds
To open and equip two new supermarkets.
Office—20 "O" St., S. E., Washington, D. C. Underwriter
—Rudd, Brod & Co., Washington, D. C.
(letter of notification)
pre¬
stock, series A (par $5) and 2,476,116 shares of
common stock
(par 60 cents), of which all of the pre¬
ferred and
763,011.3 shares of common stock are to
be offered in exchange for Mount Vernon Co. preferred
share
.
30,000 shares of common
Price—$2 per share. Proceeds—For spe¬
cial building, equipment and for working capital. Office
—Columbia, S. C.
Underwriter—Alester G. FUrrnah
Co., Inc., Greenville, S. C.
ferred
and
14
stock
Holly Corp., New York
Jan.
offered
Feb. 1
Jan.
—
six-for-one
New York.
Lynch, Pierce, Fenner & Bcane, both of
and installation of tables, rent and mainten*salaries, insurance, advertising and working capi¬
Office
1718 Eye St., N. W., Washington, D. C.
Underwriter—None.
par
for
Leslie
purchase
37
.
as
sites
loans;
for. industrial
for payment
purposes;
and for working capital
other corporate purpose. Office—Minneapolis, Minn. Underwriter
—None.
and
★ Minnesota Fund, Inc., Minneapolis, Minn.
25 filed (by amendment)
200,000 additional shares
of common stock (par one cent).
Price — At market.
Proceeds—For investment.
'
Feb.
*
record
under
—To
that
March 4,
such
or
for each share subject to
warrants.
equip and stock
may
be acquired.
Christensen.
Price—$3.25
a
per
warehouse and
share.
purchase
Proceeds
any new
stores
Underwriter—Peters, Writer &
Inc., Denver,
Colo.
Minnesota Power & Light Co.
Feb. 8 filed
Proceeds
program.
tive
(3/11)
$12,000,000 of first mortgage bonds due 1987.
—
To
repay
bank
Underwriter—To
bidding.
Probable
loans and
be
for construction
determined
bidders:
Halsey,
by competi¬
Stuart & Co.
'
Number 5616.,
185
Volume
...
The Commercial and Financial Chronicle
Inc.; Kidder,: Peabody & Co. and Merrill Lynch, Pierce,
Dec. 27 filed 75,000 shares'of 5%
Raymond Oil Co., Inc., Wichita, Kansas
29 filed 200,000 shares of common stock (par 25
cents). Price—To be supplied by amendment. Proceeds
—For exploration, development and operation of oil and
gas properties. Underwriter—Perkins & Co., Inc., Dallas.
Jan.
cumulative participat¬
ing preferred stock and 7,500 shares of common stock.
Price—At par ($10 per share). Proceeds — To liquidate
(jointly); Kuhn, Loeb & Co.;
Eastman Dillon, Union Securities & Co. and Salomon.- a bank loan of $178,635; increase inventories; and for
Bros. & Hutzler (jointly). Bids—Tentatively expected to
working capital and general corporate purposes. Under¬
be received up to 11:30 a.m. (EST) on March 11.
writer—None.
&
Brothers and Drexel & Co.
;
Nic-L-Silver Battery Co., Santa Ana, Calif.
f
(jointly); White, Weld & Co.^ Shields
Co. and Equitable Securities Corp. (jointly); Lehman
& Beane
Fenner
(1027). 39
•
,
Mississippi Valley Portland Cement Co.
Ohio
Tex.
Raytone Screen Corp.
15 (letter of notification) 50,000 shares of
Power Co.
Feb.
'
capital stock (no par), of
which 708,511 shares are subject to an offer of rescission.
Price—$3 per share.' .Proceeds—For completion of plant,
Dec. 26 filed 1,600,000 shares of
"
Sept. 20 filed 60,000 shares of cumulative preferred stock
(par $100). Proceeds—For construction program. Under-
stock
(par
—To
10 cents).
Price—$3.25 per share.
common
Proceeds
reduce
debt, for purchase of inventory and for
working capital. Office—165 Clermont Ave., Brooklyn,
1 writer—To be determined by competitive bidding. Prob¬
provide for general creditors and for working capital;;* able bidders:. The First Boston Corp.; Blyth & Co., Inc.;
Kuhn Loeb & Co.; Eastman Dillon, Union Securities & Co.
/-Office-—Jackson, fMiss.vUnderwriter—None, offering to
be made through ^company's- own agents.
* and.Salomon Brps.
Hutzler (jointly); Harriman Ripley
& Co., Inc. and Stone & Webster Securities Corp. (joint- ;
/•'< Monticello Associates, Inc.
>
y
:
ly); Lehman Brothers. Bids-^The two received up to 13 ~
Feb. 18 (letter of notification) 300,000 shares of common .<
a.m.
(EST)- pn Oct. 30 were rejected.
<;
V * > *o
stpck. Price—At par ($1 per share).{ Proceeds —For-'
:
V
^ capital expenditures, including construction of motel, v ★ One Hour Valet, Inc. .r \r
i roadside restaurant and gas station. Business—Has been•♦ Feb. 14 (letter of notification) 42,000 shares of common-stock (par $1). : Price—$5 per share.: Proceeds—To go ¬
processing and selling-of gravel. Office-*-203 Broadway,'
Monticello, N. Y: Underwriter—Walnut Securities Corp.y T to selling stockholders. Office — 1844 W.- Flagler St.,
Miami, Fla. Underwriters—R. S. Dickson & Co., Char^ Philadelphia, Pa. r
; ,V v - ;
.;
7
*
Jotte, N. C.; Clark, Landstreet & Kirkpatrick, Inc., Nash¬
Montreal Trar.sportation Commission ,.( 3/1.3
•
ville, Tenri.'; Courts & Co., Atlanta, Ga.; Willis, Kenny
: Feb. 19 filed $9,000,000 of : sinking fund debentures due
& Ayres, Inc., Richmond, Va.; and Atwill & Co., Miami •
March 15, 197T. Prices—To- be supplied by amendment.;
Proceeds—For> equipment and improvements, etc. Uh-j. Beach, Fla. v
N.
Y.
.Underwriter—J. P.
Emanuel & Co., Inc.,
Offering—Expected in March.
-
City, N, J.
Jersey
,
„
•
,
Rochester
Telephone Corp. (3/7)
Feb. 15 filed 195,312 shares of common stock (par $10)
to be offered for subscription by common stockholders
of record March 6, 1957 at the rate of one new share for
each five shares held; rights to expire on March 25. Priee
—To be supplied by amendment. Proceeds — To reduce
"
•
.
.
'
bank
loans.
Underwriter—The First Boston Corp.: New
•
.
York;
,
Rocky Mountain Research, Inc.
Feb. *8 (letter of notification) 300,000 shares of commqtt
stock (par 10 cents).
Prices—$1 per share. Proceeds—
For working capital and market research.
Office—625
Broadway Bldg., Denver, Colo/ Underwriter — G. JR.
Harris & Co., Denver, Colo.
,
•
derwriters—Shields & Co., and Halsey, Stuart & Co. Inc., ; ; Oneita Knitting Mills (3/7)
both of New York; and Savard & Hart, Inc., Montreal,:
Feb. 19 (letter of notification) $296,600 of 20-year 6%
-Canada/ ?**• C' ;
debentures due March 1, 1976. Price—-At par. Proceeds
r.. / r7, 'S
Moriell' (John) & Co. \V"
^-tTo redeem. $292^550 outstanding 6% cumulative pre¬
f
ferred stock and for working capital. Office—350 Fifth
Feb; 21 filed $5,000,000 of Employee Savings Notes to be.
"
1
Samson Uranium,
employees of the -company and its • Ave., New. York, N. Y. Underwriter—None.,
subsidiaries under-the company's Savings Plan- *
Orefi^lfl Mining Corp., Montreal, Canada
Employees. Price—100% of principal amount.
' ' Oct. 15vfiled
offered
to eligible
assays; for mining shaft; to exercise purchase of
option agreement on additional properties; tor WQrkjpg
capital and other corporate purposes. Underwriter —Indiana State Securities Corp. of Indianapolis, Ind., for
offering to residents of Indiana.
core
domestic
'
.
•
for
'
;p Nantucket Gas
900,000 shares of capital stock (par $1), of
which 200,000 shares are now outstanding. Price—To be
supplied by amendment. Proceeds — For exploration
& Electric Co.
'
4,500 shares of common
stock being offered for subscription by stockholders on
the basis of one new share for each four shares held -
Feb.'l
:
:
-
Jan.
of
as
of notification)
(letter
Price—At
facilities.
-
on
Owens-Coming
Feb.
Underwriter—None.
:
rights to expire
Nov.. 30
National
Fidelity Insurance Co.
(letter of notification) 33,000 shares of common
stock, (par $1.251 to be offered to stockholders on the
basis of one share for each seven shares held. Price—$8
■
Lithium
National
York
Corp., New
(3 11-15)
Price—$1.25
cent).
.
stock (par one
Proceeds—For acquisi¬
testing program: for assess¬
of
tion
.
properties: for ore
work
ment
share.
per
on
the Yellowknife
-
a
National
OLine
Production
new
ferred
Electric & Power Co.
filed
21
\\hich 163,334 shares
one
1
new
one
•-
■
on
Dec.
Prunswick
Electric
wick
of)
1,
oversubscription privilege); rights to expire
1957.
The 50,766
shares of
be
advanced
Power. Commission
sinking fund deben- "
to
to
The
repay
New
bank
bank
tion
—The. First Boston Corp. and
Gas
Bruns-
loans
★
South
be
England Electric System (3 12)
819,000 shares of common stock (par $1)
in exchange for capital stock of Lynn
& Electric .Co. on the basis of two NEES shares
&
«
New
Feb'.
•
tric
be determined
of record Feb;
Public. Service,
Inc.
(3 28)
26, 1957
•
1987.
Underwriter—To
construction
program.
-
-
by competitive bidding. Probable bidders:
Corp. and Eastman Dillon, Union Securities &
(jointly); Kuhn, Loeb & Co. and A. C. Allyn & Co.
Inc. (jointly); Kidder, Peabody & Co. and Stone & Webster Securities Corp. (jointly); Lehman Brothers.
Bids
—Tentatively expected to be received up to 11:30 a.m.
eurities
(EST)
/
on
Peabody
Price—To
&
Co.,
Underwriter
—
Shares,
Standard
None.
Standard
Gas
stock,
be
Morgan Stanley & Co.; Kidder, Pea¬
body & Co. and Merrill Lynch, Pierce, Fenner & Beane
(jointly); Lehman Brothers; Eastman Dillon, Union Se¬
& Co. and Equitable Securities Corp. (jointly).
be received up to 11 a.m. (EST) on March 13
at 250 Park Ave., New York, N. Y.
curities
Bids—To
Southern
Counties
Gas
-
Shipbuilding Corp., Camden, N. J.
Inc.,
will
aue
Iowa.
Office
—
17?5
1982.
Proceeds
—
(3/#-'i
bonds, series B,
To repay indebtedness to parent,
21
Service
Electric
filed $50,000,000
1977. .Proceeds
—
struction
-
Proceeds—For
market.
March 20.
the time of sale.
Rockingham Road. Davenport,
Underwriter—Norte.
of California
Pacific
the
&
stock
(par
investment.
Gas Co.
(PST)
$1).
Los
Under¬
Fla.
March
★ Southern
13/20)
15
6
at
Room
Discount Co.
..
-
tures
as
well
tions,' Inc.:
vision
York.
as
and
releases.
a
15% deben-
$173,180 debt to Trans-Union Produc¬
for
working
capital
Underwriter—E,
_
L.
Business—Tele¬
Aaron
&
Co..
New
$94,000 subordinate 5%
series G due Oct. 1, 1975,
(letter of notification)
debentures,
exchange for series D, E or F debentures.
(in denominations of $500 and $1,909)Proceeds—To reduce bank loans and additional working
Price
—
capital.
At
par
Office—919 W. Peachtree St., N. E., Atlanta, Ga.
Underwriter—None.
<
Southern Sportsman,
t
Dec.
Proceeds—-To retire $125,000 of outstanding
-
So. Flower St.,
to be offered in
program.
Pyramid Productions, lncM New York
Sept. 27 filed 220,000 shares of common stock (par $1),
of which 200,000 shares are to be offered to public and
20.000 shares issued to underwriter. Price—$5 per share.
1216, 810
Calif.
non-convertible
.
-
on
Angeles,
Feb.
of debenture bonds due March
For construction
Corp.; Blyth & Co., Inc.; Merrill Lynch, Pierce,
Beane.
Bios—lo De received up to 6:30 a,rn.
Fenner &
Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co, Inc.; The First Boston
Corp.; Kuhn, Loeb & Co. and Lehman Brothers (joint¬
ly); Morgan Stanlev & Co. and Drexel & Co. (iointly).
Rids—Expected to be received up to 11 a.m. (EST) on
1,
.
C*v
1,456 shares of-common
(par $50).*- Price—$125 per share.
Proceeds—To.
present mortgage indebtedness and for-working
cabital.
Co.
Feb. 4 filed $15,000,000 of first mortgage
Boston
common
Plymouth Fund, Inc., Miami, Fla.
F«b; 5 filed 500,000 shares of capital
Feb.
★ Nichols Wire & Aluminum
Feb. 25 (letter of notification)
'retire
Underwriter—To be de¬
12.
March
fixed
Lighting Corp. (about $9,200,000) and for con¬
and expansion program.
Underwriter—To
determined by competitive bidding. Probable bidders:
Halsey, Stuart
Co.
: WVi"fe, Wold & Co.; The First
★ Public
,
Proceeds—To
Merritt-Chapman & Scott Corn., tbp selling stockholder.
Underwriter—None. -Statement effective Feb. 28.
$to<?k
York.
New
by competitive bidding. Probable bidders: The
7
filed
375.000
shares
shares
are
to
inc., Atlanta, Ga.
486,000 shares of common stock,
'
~
share for
13, 1957 on the basis of one new share
First Boston Corp.:
common
paid on the Pittsburgh Rvs. stock
Proceeds—To Standard Gas & Elec¬
of' 45.59%. of
March
termined
(no par),
to be offered for subscrip¬
—
24 filed
York Stock Exchange at
new
for each 13 shares held; rights to exoire on April 4, 1967.
writer
Plymouth Bond & Share Corp., Miami,
Joseph A. Rayvis, also of Miami, is President.
211,254 shares of common stock (par $1).
Price—To be related to the prevailing price on the New
Jan.
the basis of one
★ Southern Co.
547,678 shares of common stock
dividends
any.
Co.
Price—At
March 28.
# New York
on
ard Gas stockholders.
...
Co.
'
f.
—
Kidder,
and
Dillon,
titled to subscribe, plus any unsubscribed share and
Halsey, Stuart & Co. Inc.: White. Weld & Co.; Blair &
Incorporated: The First Boston Corp.: Equitable Se-
-
,
(with an oversubscription privilege);
rights to expire March 12, 1957. Price—$18.25 per share..
Proceeds
For
construction
program.
Underwriter —
purchase all shares of Pittsburgh Rys. to which it is en¬
Co.
"
'
,
remaining 7,026.25 shares not offered directly to Stand¬
15 filed $6,000,000 of first mortgage bonds due
Proceeds—For
Gas Co.
each 10 shares held
York.
by Standard Gas & Electric Co.
owner
'
Orleans
13 filed
after Oct. 19, 1956).
share. Dealer-Managers—Paine, Webber,
Curtis and F. S. Moseley & Co., both of:
Boston, Mass.
&
336,085 shares of common stock; (par $4.59)
being offered for subscription by common stockholders
'■"?
run for a period of not less than 21 days.
Price—To
supplied by amendment (expected to be $6 per share,
less
offered
Jackson
Electric
Carolina
4 filed
Feb.
will
for each Lynn
.
Stone & Webster Securities
Corp., both of New York.
stockhold¬
ers on
the basis of one Pittsburgh Rys. share for each
four Standard Gas shares held. The subscription period
filed
3
be
to repay
Underwriters
loans and for construction program.
bank
used to
Underwriter—Eastman
program.
cf which 540,651 75 shares are
New
Dec.
expansion
Feb.
Offering—Temporarily delayed.
Chicago.
to
stock and from private sale of 20,000
common
shares of $100 par preferred stock, to be used
Pittsburgh Rys. Co., Pittsburgh, Pa.
,
Underwriter—Halsey. Stuart & Co. Inc., New York and
.
on
of record
$22,000,000 of first mortgage bonds, will be
Union Securities & Co., New
1, 1982;.. Price—To be supplied by amend¬
Proceeds—To
ment.
.
(Province
14 filed $12,000,000 of 25-vear
tures due Jan.
-
1957
refund all but $1,000,000 of company's funded debt:
general corporate purposes. Office—47 West Ex- "
change St., Akron, Ohio. Underwriter—None.
New
18,
(3/13)
Feb. 15 filed 1,507,304 shares of common stock (par $5)
to be offered for subscription by common stockholders
of
Subscription certificates are expected
March 8. Price—$27 per share. Proceeds
—For
-
March
for
share for each 20 shares held: rights to expire
to be mailed
'
record
share for each six shares held (with
new
for
.
April 1, 1957.
on
•
(par $5),
to be offered for subscription
of
on April
remaining shares are to be offered
the account of selling stockholders. Price — To be
supplied by amendment. Proceeds—From sale of 163,334
an
•
—
•
(3/19)
,
-
f
are
stockholders
common
the basis of
—
•
Proceeds — To purchase and
project. Underwriter—None.
a
214,100 shares of common stock
by
Underwriter—Drexel 8c
Co., Philadelphia, Pa.
and 50,000 shares of class B common stock
Pioneer Finance Co.
(par $2). Price—To be supplied by amendment. Proceeds vJan. 9
(letter of notification) 12,000 shares of common
—To selling stockholders. Office —- Little Rock, Ark;
stock (par $1), Price—At market (estimated at $3.37V*
Underwriter
Equitable Securities Corp., Nashville,
to $3.8712 per share). Proceeds—To a selling stockholder.
Tenn., and New York, N. Y, Offering — Indefinitely
Office
1400 National Bank Bldg., Detroit 26.' Mich.
onctnoned.
1
'
'.
~
Underwriter—Troster, Singer & Co,, New York, N. Y.
★ National Rubber Machinery Co. (3 8)
Pioneer Natural Gas Co. (3 13)
Feb. 25 (letter of notification) 9,778 shares of common '
Feb. 19 filed $12,500,000 20-year sinking fund debentures
stock (par $10) to be offered for subscription by common
due 1977.
Price—To be supplied by amendment.
Pro¬
stockholders of record March 7, 1957, on the basis of
ceeds—Together with proceeds from private placement
$2)
copuppn
$50 per share).
★ Savannah
Price—
repay
at
Feb.
of
(3/13)
Proceeds—To
construction.
(letter of notification) 97,000 shares of
develop property for
Salt Lake City,
preferred stock (par $100).
M.
13
stock and 4,000 shares of 7% cumulative preferred stqck.
Price—Both at par (common at $1 per share and pre¬
stock
Nov'. 15, 1955 filed 50,000 shares of class A common stock
(par
N.
(3/13)
common
Corp.,
supplied by amendment.
loans and for
^
Corp.
300,000 shares of
and 20,000 shares of
To be
;
★ Santa Claus Ranch of Rudioso, Inc., Rudioso,
Feb.
Feb. 19 filed $4,000,000 of first mortgage bonds due 1987,
Under-
Co.
Insurance
filed
Fiberglas
Philadelphia Suburban Water Co.
properties; and for cost
concentration plant, mining equipment, etc.
writer—Gearhart & Otis, Inc., New York.
of
.
Tzo-
Utah
Feb. 4 filed 1,000,000 shares of common stock (par $1).
Price—$1.25 per share. Proceeds—For drilling test wells
and general corporate purposes.
Business—To develop
oil and gas properties. Underwriter—Market Securities,
Inc., Salt Lake City, Utah.
Feb. 19 filed 3,120,000 shares of common
.
18
Paradox
share. Proceeds—For working capital. Office—314
Pine St., Spartanburg, N. C. Underwriter—None.
★
Michael
later.
named
(par $1).
-Price—To be supplied by amendment. Proceeds — For
expansion program and working capital.
Underwriters
—Goldman. Sachs & Co., Lazard Freres & Co., and
White, Weld & Co., all of New York.
per
;
be
panakis, of Miami, Fla.* and Denis Colivas, of Montreal,
Canada, are large stockholders.
March 4, 1957.
par ($25 per share).
Proceeds—For electric,
Office —. 10 Federal'St., Nantucket, Mass.
1957:
4,
Underwriter—To
costs.
Inc., Denver, Cole.
Aug. 21 (letter of notification) 25,000,000 shares of capi¬
tal stock. Price—At par (10 cents per share). Proceeds
—For core drilling, including geological research
.
;
are
be
to
be
reserved
of which
publicly offered and 111,300
on exercise of options to be
granted to employees of the company (latter exercisable
or before Dec. 31,
1956). Price—$3 per share. Pro¬
buy or establish a complete sporting goods
on
ceeds—To
house; other expansion and inventories.
Investment Underwriters, Inc., ^Atlanta,
Underwriter—
Ga.
Continued
on
Philip H.
page
40
m
The Commercial and Financial Chronicle,.,.
(1023)
:
39
Continued from page
Dohn, Jr., and Roger H. Bell,
underwriter, are officers and
.Sportsman, Inc..;.
first offered for subscription
,_•.'/
•
'
•.
issued
sole stockholders of the
directors of Southern
-
Underwriter—None.
Southwide Corp., Anniston, Ala.
stock
Fire & Casualty Co. and common
of Allied Investment Corp.
Price—-$2 per share.
.
stock of Capital and Allied firmi
stock,
units of
in
which
of
a
shares of stock
are
,
of the
debentures
Burnside
Dec.
corporate
25
pany's
Employees
of
participations in
the
filed
$40,000,000
•
14.
—
f
Fund,
(by
per
Penn
filed
on
ment.
Proceeds
16.
—
rights to expire
Proceeds
—
on
To
Western
one
\
additions
determined
and improve¬
by competitive
bidders: Halsey. Stuart & Co. Inc.;
Hutzler; R. W. Pressprich & Co.; Baxter
•
.
„
& Wilcox
directors
21
the
Co.
.
(4/1)
approved
plan to offer 535,143
a
Baltimore
March
Feb. 8 it
increase
sell
share for each
Gas
&
Electric
March
10 shares
Underwriter—Mor¬
Co.
reported that company plans to issue and
was
about
addition
not yet
been determined. Underwriter—For bonds, to be
determined by competitive bidding.
Probable bidders!
Haisey, Stuart & Co. Inc.; White. Weld & Co. and The
Corp. (jointly); Harriman Ripley & Co. Inc.
(jointly); Kuhn, Loeb & Co. f
and Alex. Brown & Sons
com¬
subscription by*
21, 1957 (other
Baltimore
Feb.
Co.); rights to
be supplied by amend¬
for
new
$32,000,000 to $33,000,000 of mortgage bonds,
to 580.000 shares of common stock,
during
the first half of 1957, but the exact amount oi-bonds has
in
Penn Electric
—
one
rights to expire on April 15.
Stanley 5c Co., New York.
gan
First Boston
$12,000,000
of
14)
held:
8.
Gas & Electric
Charles
P.
Crane,
(3/20)
Chairman
>
of
the
Board
L/
and
President, announce that the next financing will prob¬
ably take the form of an issue of approximately 580,000'
construction
shares of
For working capital. Under-*
on
stock which
common
scription by
share for each five shares held. Price—
—
be
,
issue
Probable
Feb.
t
Price—To
Proceeds
(3
★ Babcock
10
the basis of
RR.
Salomon Bros. &
Carolina Tel.
$6 per share.
Arbor
tificates.
Co., Weaverville, N. C.
(letter of notification) 44,615 shares of common,
stock (par $5) to be offered to existing stockholders on
Feb.
For
—
(3/26)
bond
new
a
be received by the company on March 14 for
the purchase from it of $1,830,000
equipment trust cer¬
50
Underwriter—To be deter¬
,
common
the basis
of
one
of
record
share for each 11
March
15
shares held.
Subscription period would probably extend from the
latter part of March into early April. v Underwriter—
T|he First Boston Corp., New York. Registration—Ex¬
pected
writer—None.
on
Feb. 28.
Baltimore & Ohio RR.
Wildcat Mountain
to be offered for sub¬
are
stockholders
new
(4/15)
;
,
cents).
Corp., Boston, Mass.
13 filed $800,000 of 6% subordinated cumulative
debentures due Dec. 1, 1976, and 6,000 shares of common
stock (no par) to be offered in units of a $400 deben¬
expected to be received by the company on or
April 15 for the purchase from it of $3,585,000
equipment trust certificates to be due annually in 1-to-
—-To
ture and three shares
Salomon Bros. & Hutzler.
Thrifty
Ifeb.
Drug Stores Co.,
Inc.
(3/12)
filed 200,000 shares of common stock (par 50
Price—To be supplied by amendment. Proceeds
selling stockholders;! Underwriter — Blyth & Co.,
tnc., Los Angeles, Calif.
• Tower
Acceptance Corp.
(3/4-6)
Oec. 7 filed 200,000 shares of class A common stock (par
SI). Price—$5
share. Proceeds—For working capital.
Office—Houston, Tex. Underwriter—S. D. Fuller & Co.,
New York.
per
.<
.|.
.
.,
.
Trans-Gulf Offshore
Jan.
24
cents).
filed
Price
700,000
—
$2
Drilling, Inc.
per
of
share.
*
:
stock
common
Proceeds
—
■drilling platform; reserves for escalation
gency charges, etc.
Office—Houston, Tex.
—Dallas Rupe
(par
25
For mobile
and
contin¬
Underwriter
Chemicals, Inc.
(3/1)
tion of plant and other facilities; for equipment; and
working capital. Office—Wallkill, N. Y. Underwriter—
Gerber, Inc., New York.
Trl-State
Rock
Cincinnati, Ohio
(letter of notification) 23,307 shares of class B
stock (par $1) to be offered for
subscription by
19
class B stockholders of record Feb. 4, 1957, on the basis
of one new share for each seven shares held;
rights to
expire
on
March 25,
1957.
Corp., Leesburg, Va.
flov. 28 filed 500,000 shares of 6% cumulative convertible
preferred stock. Price—At par ($1.50 per share). Pro¬
ceeds
For asphalt plant, equipment, working capital
—
mad other corporate purposes.
Price—$8.56 per
ceeds—For working capital.
Cincinnati, Ohio.
ment.
Underwriter—None.
1
due
pansion
share. Pro¬
Office—3500 Madison Road,
Price—To
sinking fund de¬
supplied by amend¬
be
To
redeem
presently outstanding
bonds, to repay bank loans and tor ex¬
—
program.
Business—Meat
packing
firm.
Turf
Paradise, Inc., Phoenix, Ariz.
15
Offering—
Winter Park, Fla.
40,000 shares of common stock (par $10)
shares of cumulative preferred stock (par
to be offered in units of 10 common shares and
filed
4,000
$100)
preferred share.
Price—To be supplied by amend¬
ment.
Proceeds—-To repay bank loans and for expansion
program. Underwriters—Security Associates, Inc., Win¬
Park, Fla.; First Florida Investors, Inc., Orlando, Fla.,
Pache & Co., Miami, Fla.; and Grimm &
Co., Orlando,
Fla.
(4/1)
announced
company
it
plans
stockholders around April
1
scription privilege).
subscribed
ceeds
shares.
To
—
Employees
Price—To be
reduce
bank
may
offer
to
to
its
the right to sub¬
purchase any
determined
loans.
un¬
later. Pro¬
Underwriter
—
None.
Registration—Expected in March.
"
•
25
Electric
Power
Co.
applied to the
California P. U. Com¬
mission for authority to issue and sell
300,000 shares of
stock (par $1) and $6,000,000 of first
mortgage
bonds due 1987. Proceeds—To
repay bank loans. Under¬
company
common
writers
—
Probable
To
be
Fenner
bidders:
&
Beane;
determined
by
competitive
'
:
Peabody
&
bidding.
(1) For stock—Merrill Lynch, Pierce,
Lehman
Brothers;
'Rhoades & Co. and Bear, Stearns & Co.
Winter Park Telephone Co.,
one
*
Co.
scribe during a three weeks'
period for 20,000 additional
shares of common stock (par $10) on the basis of one
new share for each five
shares held (with an oversub¬
Un¬
ter
.Jan. 1J filed 50,000 shares of common stock (par $10) to be
Feb.
Gas
★ California
20-year
and Hallgarten & Co., ail of New York
City.
Indefinitely postponed.
14
*
f
Berkshire
Feb.
of
derwriters—Smith, Barney & Co.; Glore Forgan & Co.
and
Co. Inc.;
&
Underwriter—None.
1976.
Proceeds
first mortgage
Stuart
and
Williamson Co.,
Feb.
Probable bidders: Halsey,
years.
common
•
Feb.
Material
15
Price-— $500 per unit.
oxiering to be made by officers and agents of company.
bentures
offered publicly in units of one common share and one
warrant. Price—$2.01 per unit. Proceeds—For construc¬
are
about
working capital. Busi¬
ness—Mountain recreation center.
Underwriter—None;
Aug.__28 filed $20,000,000
Jan.
22 filed
1,615,500 shares of common stock and
£,126,500 common stock purchase warrants, of which
250,000 shares of stock and 250,000 warrants are to be
ML S.
of stock.
construction
Wilson & Co., Inc.
& Son, Inc., Dallas, Tex.
Transition Metals &
Proceeds—For
common
.
shares
Bids
Aug.
18
•
Bids will
Underwriter—None.
program.
Proceeds
29, 1957 at the rate of
share.
About
authorized
shares of capital stock to stockholders of record
unspecified number of shares of
April
<,
—
Co.
parent, the West
expire
directors
& Co.
(no par) to be offered for
stockholders of record March
its
Telephone & Telegraph Co.
the
Underwriter—To
Ann
stock
common
'
f
'
bidding. Probable bidders:. The First Boston Corp. and
Halsey, Stuart & Co. Inc. (jointly); Morgan Stanley &
Co.
Bids
Tentatively scheduled to be received on
March 26.
\■/? '; ■• '■ ' v ;v
•'
10,000,000 additional
(par $1). Price — At market.
Power' Co.
an
19
ments.
Inc.
Electric
$24.50
—
"*'■f
•
-I
for
$250,000,000.
by competitive
19
than
Underwriter—None.
Thermoray Corp.
June 29 (letter of notification) 380,000 shares of com-maon stock
(par 10 cents). Price — 75 cents per share,
Proceeds—For inventory, working capital, etc. Business
—Electrical heating. Office—26 Avenue B. Newark, N. J.
Underwriter—Eaton & Co., Inc., New York.
re¬
to be sold for
are
shares
American
filed
West
mon
Business—A non-diversified closed-end manage¬
ment investment company.
Penn
*
/
•
Dec,
*
amendment)
stock
common
Price
Feb.
entertainment
and
Proceeds—To
construction.
middle of March.
investment. Under¬
For
bidding. Probable bidders: Carl
M. Loeb, Rhoades & Co.; The First Boston Corp. and
W. C. Langley & Co. (jointly); Lehman Brothers and
Goldman, Sachs & Co. (jointly). Bids—Expected to be
received up to noon (EST) on Feb. 26.
Plan, Inc., New York* City
Oct. 30 filed 52,000 shares of class A stock (par five
cents) and 28,000 shares of class B stock (par five cents).
Price—Of class A, expected at $10 per share in lots of
not less than 25 shares; of class B, expected at par. Pro¬
theatrical
25
mined
Interests
in
plans to issue and
company
new
company's account and 60,selling stockholders. Underwriters—Van
Alstyne, Noel & Co., New York; and Crowell, Weedon &
Co., Los Angeles, Calif. Offering — Expected about the
Fund, Inc., Los Angeles, Calif.
of common stock (par $1).
Proceeds
investments in subsidiaries.
loans, financing of time payment sales
and air conditioners and for working
capital. Underwriter—Franklin Securities Co., Dallas,
Texas. Offering—Expected soon.
investment
announced
April 12.
000 shares
shares
50,000
share for each 16 shares held;
pay bank
appliances
fields.
was
.
000
528,000 shares of common stock (par $5)
being offered for subscription by common stockholders
of record Feb. 26, 1957, on the basis of one additional
Corp., Clarksville, Texas
Nov. 29 (letter of notification) 120,000 shares of com¬
mon stock
(par $1). Price—$2.50 per share. Proceeds—
ceeds—For
it
Electronics, Inc., Los Angeles, Calif, v
Feb. 18 it was reported early registration is
expected of
190,000 shares of common stock (par $1), of which 130,-
Price—At market, but not less than $3 per share.
operations. Underwriter—None.
West
Jan.
Fuel
/Theatrical
First
of
American
Spring St., Los Angeles 13, Calif.
shares of
Underwriter—Dillon, Read & Co. Inc., New York.
Texas
■
filed
Feb.
Corp. (3 6)
first mortgage pipe
of
21
-
Proceeds—For investment.
14
y
be
(to
company
merger
bank loans and for
for
Offering—Date
be
ic Wellington
20
filed
Savings Plan, together with 300,039
which may be issued pursuant
capital stock
line
bonds due 1977.
Price—To be supplied by amendment.
Proceeds—To repay bank loans and for construction pro¬
of
31
cents).
com¬
Texas Eastern Transmission
To
York.
Venezuelan Sulphur Corp. of America (N. Y.)
Jan. 29 filed 150,000 shares of common stock (par
thereto.
gram.
New
Proceeds—For mining
of
$16,445,900
this
reported
following
$14,500,000 first mortgage bonds.
Alfred D. Laurence & Co.), Miami, Fla.
Co.
filed
.shares
Feb.
Inc.,
Venezuela Diamond Mines,
Inc., Miami, Fla.
Aug. 31 filed 1,500,000 shares of common stock. Price—
At par (20 cents per share). Proceeds—For exploration
and mining operations in Venezuela. Underwriter—Co¬
lumbia Securities Co., Inc., of Florida (name changed to
expire on April 2. PriceTo be supplied by amendment. Proceeds—Together with
bank
loans, for construction program. Underwriter—
White> Weld & Co., New York.
^ Texas
Mortgage Corp.; Chicago, III.
was
pay
writer—Vanderbilt Mutual Fund Management Corp., 458
So.
of March 19. 1957; rights to
Feb.
Co.,
Price—At market.
Spokane Natural Gas Co. (3/19)
Feb. 18 filed 135,315 shares of common stock (par $1)
to be offered for subscription by common stockholders
at the rate of one new share for each three shares held
as
Jan.
<
,
Vanderbilt Mutual
Price—$100 per unit.
purposes,
including
working capital and for redemption of any unexchanged
preferred stock. Underwriter—Smart, Clowes & Oswald,
Inc., Louisville, Ky. Offering—Expected shortly.
general
.
Corp., New York.
be publicly offered.
to
are
&
-
Price—To
ing $200,000 of debentures land 4,000 shares of common
Proceeds—For
;
Conditioning Corp.
(3/19)
(par $1).
supplied by amendment.
Proceeds—To
selling stockholders.
Underwriter — The First Boston
54,530
stock
it
sell
Air
* United States Borax & Chemical Corp.
Feb. 26 filed 150,000 shares of common stock
be offered first in exchange for
to
4
corporation
,
10,906
and
I
-
States
indefinite.
outstanding shares of 5% cumulative con¬
vertible preferred stock (par $10) at the rate of one new
unit for each 10 shares of preferred stock. The remain¬
the
Advance
Dec.
Underwriter /
Sept. 27 filed 600,000 shares of common stock (par 10
—To be determined by
competitive bidding. Probable
cents), of which 50,000 shares are to be offered to em¬
bidders: Halsey,j Stuart & Co.
Inc.; Eastman Dillon,
ployees, distributors and dealers; 50,000 shares, plus /
Union Securities & Co., Equitable
Securities Corp. and
any of the unsold portion of the first 50,000 shares, are
Drexel & Co.- (jointly); Lehman
to be offered to the public; and the underwriter will be
Brothers; Harrimdn
Ripley & Co. Inc. and Goldman, Sachs & Co./ (jointly
granted options to acquire the remaining 500,000 shares
Blyth & Co., Inc. and Kidder, Peabodj' & Co."
for reoffer to the public. Price—At market prices. Pro¬
(jointly);
Morgan Stanley & Co. Bids—Expected to be received
ceeds—For working capital and general corporate pur¬
up to 11 a.m. (EDT)'on May 9.
Registration—Planned
poses. Office—Philadelphia, Pa. Underwriter—Mortimer
B.
$100 debenture and two shares of
$545,300
;
,
^
;
,
plan.
United
Pro¬
Sperti Products, Inc., Hoboken, N. J.
Jhn. 29 filed $745,300 of 6% debentures due March 1,
1972 and 14.906 shares of common stock (par $1) to be
offered
,
>
Management Co. (3/25-29),
Development Corp. of America above.
said
for purchase of U. S. Government bonds. Under¬
writer—None, but a selling commission will be allowed
to dealers for sales effected by them.
Elvin C. McCary,
.
/
,
and
Anniston, Ala., is President.
Underwriter—
,
.stock of Capital
■of
preferred stock.
•
Sept. 12 filed 450,635 shares of common stock (par 51),
<of which 211,681 shares are to be offered publicly 238,954
shares are to be offered in exchange for the class A
ceeds—For purchase of
outstanding
surviving
Mortgage Corp.
★ United Gas Corp., Shreveport, La.
and Irwin Jacobs & Co. of
Chicago) plans a public
Feb. 25 filed $6,660,000 of participations in the Em¬
offering of $1,000,000 class A 6% participating convert¬
ployees Stock Purchase Plan of this corporation and its / ible stock
(par $1). Underwriter—Baker, Simonds & Co.,
subsidiaries, United Gas Pipe Line Co. and Union Pro¬
Detroit, Mich. Offering—Expected in March.
:
/ /
ducing Co.; also 200,000 shares of common stock of
Alabama Power Co.
United Gas Corp. which may be acquired pursuant to
(5/9)
j.
Toronto, Canada
Aug. 24 filed 750,000 shares of capital stock (par $1).
Price—64V2 cents per share. Proceeds—To selling stoc*Southern Union Oils Ltd.,
'
and preferred u
Proceeds—To retire ;«
common
Ulen
See
iiolders.
and
by
Price—$15 per share.
None.
*
-
stockholders.
Thursday, February 28, 195?
.
Co.; White,
Weld
5c
Co.
Carl
M.
Loeb,
(jointly); Kidder,
(2)
For
bonds—
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co.;
White,
Weld & Co.; Lehman Brothers and Dean
Witter & Co,
(jointly).
Central
Feb. 1 it
Hudson Gas
was
& Electric
the middle of the year, to
000 of
new
Corp.
announced that the
company
securities
plans, before
issue approximately
$12,000,(two^thirds in debt securities and
The Commercial and Financial Chronicle
.
.
Thursday, February 28, 1937
.
(1029)
41
N>
the balance from sale of
construction programs
common
stock).
Proceeds—For
Underwriter—For
privilege). Stockholders! will vote March
up the present 896,412 shares of no par
debt secu¬
rities, Kidder, Peabody & Co.; for common stock, Kidder,
Peabody & Co. and Esta brook & Co.,: both of New York.
any
splitting
on
shares of $5 par common stock and on
increasing the authorized common stock to 2,200,000
shares, leaving 407,176 shares available for issuance in
the future.
Dealer-Manager—Stone & Webster Securi¬
Central Louisiana Electric Co., Inc.
Jan. 25 it was reported that the company
plans some
Proceeds—For $12,-
ties
Corp., New York.
~
-
" '
First National Bank of
Middletown, Ohio
Feb. 5 this banK>offered to its stockholders of
issue
Feb. 4, 1957 the
privately; last preferred stock issue also placed
privately; with common stock locally or to stockholders,
without underwriting.
In 1954, a convertible debenture
offering was underwritten by Kidder, Peabody & Co.
Central Maine Power Co.
Dec.
the
1957,
expected to do
definite
no
plans
for
been
yet
worked
Feb.
debentures
outstanding at the year end totaled $10,500,Construction expenditures for 1957 are now esti¬
to
ance
be
supplied from outside sources.
be
stock
underwritten
First Boston
White, Weld & Co. (jointly); Salo¬
.
Chicago, Burlington & Quincy RR.
.
(3/19)
Bids will be received by company up to noon (EST) on
March 19 for the purchase from it of $7,500,000 equip¬
ment
trust certificates
due in 30
equal semi-annual in¬
stalments.
Probable bidders: Halsey, Stuart & Co. Inc.;
Salomon Bros. & Hutzler.
5 it
and
Salomon
Probable bidders:
Bros.
Cleveland
Nov. 12 it
Halsey, Stuart & Co. Inc.;
Proceeds—To repay bank loans and for
construe-'
Underwriter—To be determined by com¬
j Probable bidders:
Halsey, Stuart &
bidding,
Corp.; Blyth & Co., Inc.; Dil¬
lon, Read & Co. Inc.; Blair & Co. Inc., and Baxter, Wil¬
& Co.
(jointly); Glore, Forgan & Co.; White,
Weld & Co.
Coastal
574
Corp.,
corporation
to
build
miles of
pipeline to cost approximately $54,589,000
point in Hidalgo County, Tex., to the point of
in East Baton Rouge Parish, La, Underwriters—May
a
Columbia
Gas
Co., both of New York.
System, Inc.
(4/3)
corporation plans to issue and
sell to the public 1,500,000 shares of common stock
(no
par). Proceeds—For financing construction work of sub¬
Feb. 13 it
sidiaries.
tive
announced
was
Underwriter—To
be
determined
by
competi¬
bidders: Merrill Lynch, Pierce,
Fenner & Beane, White, Weld & Co. and R. W. Pressprich & Co. (jointly); Morgan Stanley & Co.
Bids—
bidding.
Expected
Probable
be
to
received
April
on
3.
Registration
its
Inc.
18, company announced that it plans the issuance
sale
of
additional
debentures
in
order
to
finance
1957 construction program,
which is expected to cost
approximately $87,000,000, which will also be financed,
in part, through the offering of
1,500,000 shares of com¬
mon stock to the public (see above).
Underwriter—To
be
determined
by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co.
Inc.; Morgan Stanley & Co.;
Merrill Lynch, Pierce, Fenner & Beane and
White, Weld
& Co. (jointly).
Underwriter—Dillon*; Read & Co. Inc., New York.
•
Connecticut
Light & Power Co.
Feb. 18, it was reported company plans to sell not less
than $20,000,000 of first mortgage
bonds, possibly this
Fall, depending upon market conditions. Proceeds—For
construction
Conn.;
Haven, Conn.
.
Underwriter
program.
Hartford,
and
Chas.
W.
—
Putnam
Scranton
&
&
Co.,
Co.,
New
Consolidated Natural Gas Co.
Feb.
11
it was reported company
plans to issue and sell,
probably in June $25,000,000 of 25-year debentures and
an
additional $25,000,000 of debentures
in the Fall.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; White, Weld
& Co. and Paine,
Webber, Jackson & Curtis (jointly);
Morgan, Stanley & Co. and the First Boston Corp.
(jointly).
.
i'.
Denver &
Rio Grande Western
RR.
General
Dec.
was
June about $5,000,000 of equipment trust
or
reported
company
plans to issue and sell
cer¬
tificates. Probable bidders: Halsey, Stuart & Co. Inc.;
Salomon Bros. & Hutzlen.
•
El Paso Electric
.Feb.
12
year
of
pblvjo
Tire
&
Rubber
said
the
the
revamp
management
capital
would like to
come
with
up
working
was
structure
investments during
and
on
that
plan to
a
the
company
issue of preferred stock.
one
$18,000,000 will be put into cap¬
the fiscal year to end Nov. 30,
21
it
additional
commom
company
common
plans
stock
the
sale
this
(par $5)r prob-
stockholders (with an oversubscription
exact amount to
be sold
To repay
—
cash
required to finance'
be raised and
the type of securities to
under consideration by the management.'
are now
Underwriters
May be The First Boston Corp., New,
York; and G. H. Walker & Co., St. Louis, Mo.
Jefferson
—
Lake
Sulphur Co.
Dec. 27, Eugene H. Walte,
in the near future to sell
tures.
Proceeds—For
Jr., announced
plans
company
issue of convertible deben¬
an
expansion
program.
sell $8,000,000 of first mortgage bonds due 1987 (later;
changed to $15,000,000). Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
the
is planning is¬
$15,500,000 first mortgage bonds. Pro¬
bank loans and for new construction.
company
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Morgan
Kaiser
Industries, Inc.
28, E. E. Trefethen, Jr., Executive Vice-President,
anticipated that a portion of the funds
Nov.
stated that it is
the $25,000,000 installment due April
its 4%% term loan may have to be provided
by the creation of debt by, or the sale of equity securi¬
necessary to meet
on
ties, of this corporation or Henry J. Kaiser Co., or
through the public or private sale of a portion of the
securities of the companies owned by the Henry J.
Kaiser Co., or of certain other assets. Underwriter—The
First Boston Corp., New York.
.
it
19
issue
Gas Co.
first
of
the
announced
was
mortgage
bonds
is planning an
during the first half of
company
1957, but the specific details of the financing have not
been
finally determined.
Proceeds—To
bank loans
repay
(expected to be around $6,800,000) and for construction
Underwriter—To be determined
by competi¬
Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc.; Stone & Webster Securities Corp.;
Lehman
Brothers, Merrill Lynch, Pierce, Fenner &
Beane and Reinholdt & Gardner (jointly); The First
purposes.
Blyth & Co., Inc., Kidder, Peabody &
Co. and Shields & Co.
(jointly); Equitable Securities
Corp. and Eastman Dillon, Union Securities & Co.
(jointly); Harriman Ripley & Co. Inc. Bids—Tentatively
tive
expected to be received up to 11 a.m. (EDT) on June 6.
Boston Corp.
Stanley
&
* Great
Co.;
Northern
Ry.
-
(2/28)
will
be
received
by this company up to noon
Feb. 28 for the purchase from it of $4,140,000
equipment trust certificates to mature semi-annually
from
on
Sept.
Probable
Bros.
.
1957
1,
to and including March 1, 1972.
Halsey, Sttiart '& Co. Inc.; Salomon
bidders:
Hutzler.
&
Houston
bidding.
;
.7.'/.7.
Feb.
13 it was reported company may offer late this
Fall approximately $25,000,000 first TfioftgSge boilds, but
exact amount, timing, etc. has not yet been determined.
bidders:
/
Lincoln Telephone & Telegraph Co.
Feb. 18 it
its
to
reported company plans in April to offer
was
stockholders
common
stock
common
68,750 additional shares of
on the basis of one new
(par $16.66%)
Underwriter
share for each three shares held.
Jan.
sell
11
it
.loans
company
for
Feb.
Corp., New
late in April.
it
19
program.
'
'
that
The
11
Miami
Jan. 29 it was reported that company
County, Fla., estimated to cost a total
of $94,285,000. Underwriters—May be Blyth & Co.,-Inc.,
San Francisco, Calif., and Scharff & Jones, Inc., New
Orleans, La.
Illinois Power Co.
Feb.
7,
the
approval,
stock
directors
approved, subject to stockholder
increase in the authorized serial preferred
an
(par $50) from 1,000,000 shares to 1,600,000 shares.
Underwriters—Merrill
and The
First Boston
Lynch,
Pierce,
Fenner
&
Beane
Corp., both of New York.
Indianapolis
Nov.
ent
Power & Light Co.
21, H. T. Prichard, President, announced that
plans contemplate
stock
time
some
feasible, and
in
an
pres¬
issue of $6,000,000 of preferred
1957
if
conditions
market
make
it
available
probably will be
utilized, during at least part of 1957. Additional secu¬
rities will need to be sold in 1959 and 1960, amounting
to approximately $14,000,000.
Proceeds—To repay bank
loans and for new construction. Underwriter—May be
bank
porary
loans
are
and
Lehman
General
on
him of
March
capital stock
3,062
Property, 101 Indiana Ave., N. W., Washington 25, D. C.
shares represent less than 1% of the issued and
These
outstanding capital stock of the
apolis,
Ind.
bank.
Office—Indian¬
'
'
..
•
!
Metropolitan Edison Co.
of
sale
the
tive
$19,000,000
Underwriter
1987.
bidding.
—
To
Probable
considering
first
mortgage
bonds
due
be determined by competi¬
bidders:
is
now
Halsey,
Stuart & Co.
Inc.; White, Weld & Co.; Blyth & Co., Inc.; Kidder, Pea¬
body & Co. and Drexel & Co. (jointly); The First Boston
Corp. Bids—Not expected to be received until sometime
in
April or. May,
1957.
•
'
,4
Minneapolis & St. Louis Ry. (4/23)
Bids are expected to be received by the company on
April 23 for the purchase from it of $2,700,000 equip¬
ment trust certificates to mature annually in
l-to-15
Probable bidders: Halsey, Stuart & Co. Inc.; Salo¬
years.
mon
Bros. & Hutzler.
Mississippi
issue of $8,000,000 in bonds in 1958. Tem¬
an
(EST)
(par $10) at the Office of Alien
shares .of
Dade
(3/12)
Attorney
a.m.
Corp., Houston, Tex.
Dec. 28 the FPC authorized this corporation to build
942.6 miles of main line extending from the Mississippi
River connection across Louisiana, Mississippi and Ala¬
bama, and then eastwardly across the Florida panhandle
and down the Florida peninsula to a terminal south of
in
issue and
Underwriter-^-The
purchase from
the
f<j>r
f
Offering—Tentatively
York.
announced
bids
receive
plans to
National Bank & Trust Co.
was
.
.
7
Proceeds—To repay bank
United States will up to
of the
12
construction
Boston
Merchants
Corp.;
,
announced
was
and
expected
Lehman Brothers, Eastman Dillon,
Union Securities & Co, and Salomon Bros. & Hutzler
(jointly); Lazard Freres & Co. and Blyth & Co., Inc.
(jointly); Kidder, Peabody & Co.
Dean
.
•' $./;•
\
$30,000,00.0 of debentures.
Probable
bidders:
Cb.
Lone Star Gas
First
by competitive bidding.
Halsey, Stuart & Co. Inc.; Equitable
—
Wither & Co., San Francisco, Calif. Registration—Expect¬
ed late in March.
7,7
I '
Underwriter—To be determined
Securities
Probable
,
Lighting & Power Co.
Jan.
21
it
was
Power Co.
announced
(4/11)
company
plans to
issue and
of first mortgage bonds. Underwriter —
be determined by competitive bidding. Probable bid¬
sell $6,000,000
To
ders:
Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce,
& Beane; Kidtfer, Peabody & Co.; Blair & Co.
Fenner
Incorporated; Eastman, Dillon, Union Securities & Co.
and Equitable Securities Corp. (jointly). |Bids—Tenta¬
to be received up to 11 a.m. (EST) 011
Brothers, Goldman, Sachs & Co. and The First
Corp., who underwrote last equity financing
* International Business Machines Corp. (5/21)
tively expected
Feb.
April 11.
Boston
26
it
$200,000,000
posed
split
announced
was
stockholders
of
of
up
record
company
March
additional capital
of the
present
Proceeds—For
basis.
21,
plans to offer its
approximately
1957,
stock,
following
oro-
outstanding shares on a
working capital.
Under¬
new
writer
reported
company
plans to sell about $28,-
securities ($19,800,000 of first mortgage
bonds and about $9,000,000 of common stock).
Under¬
writers
To be determined
by competitive bidding.
—
To
—
be
determined
Halsey, Stuart & Co. Inc.;
Lynch, Pierce, Fenner & Beane and Kidder, Pea-
by "competitive
bidding.
Co. Inc.; The First
Boston Corp.; Eastman Dillon, Union Securities & Co.;
White. Weld & Co.; Harriman Ripley & Co. Inc. Bids—
bidders:
Halsey, Stuart &
scheduled to be received up to 11:30 a.m.
May 28. Registration—Planned for April 18.
Tentatively
(EST)
on
Probable bidders: For bonds:
Merrill
plans to issue $15,000,-
25-year debentures. Proceeds—To make addi¬
tional investments in securities of subsidiaries.
Under¬
rtOO of
Probable
new
(5/28)
Jan. 10 it was reported company
^ Interstate Power Co.
was
:
National Fuel Gas Co.
writer—Morgan Stanley & Co., New York.
Feb. 20 it
.*
& Co. Inc.; Kidder, Peabody & Co.; The First Boston
Corp.; White, Weld & Co.; Eastman Dillon, Union Secu¬
rities & Co., Salomon Bros. & Hutzler and Merrill Lynch,
Pierce, Fenner & Beane (jointly). Bids — Expected in
June or July, 1957.
^
Feb.
(6/6)
announced
was
800,000 of
.
Co.
was?.reported
some
it
and sale of
that
construction program will necessitate the sale
of securities to the extent of $5,000,000 to
$6,000,000. The!
★ Laclede
Georgia Power Co.
Jan.
Light & Power Co.
announced
was
*
1957
1, 1957
Co.
4, M. G. O'Neil, Executive Assistant to the Presi¬
dent,
2-for-l
_Feb. 11 it
•in
May
Corp.
in
Webber, Jackson & Curtis and Stone & Webster Secu¬
rities Corp., both of New York; and Mitchum, Jones &
Templeton of Los Angeles, Calif.
..
Columbus & Southern Ohio Electric Co.
Feb. 21 it was reported that company plans to issue and
sell in the Fall $8,000,000 of cumulative preferred stock.
1
Under¬
Houston Texas Gas & Oil
Columbia Gas System,
and
Co.
—
Statement expected to be filed shortly.
Feb.
basis.
reported company plans to issue and sell,
June, first to common stockholders, $40,000,000 of convertible debentures. Underwriters—Paine,
(EST)
Houston, Tex.
authorized this
FPC
be Lehman Brothers and Allen &
/
l-for-10
a
was
probably
Bids
Transmission
28, the
tern
Feb. 5 it
ceeds
Illuminating Co.
reported company plans to issue and sell
of first mortgage bonds in the Summer of,
liams
from
General Telephone
•
suance
Co. Inc.; The First Boston
Dec.
on
to
of
1957.
Hutzler.
&
Electric
tion program.
t
stock
common
it
#
(jointly);
&
Jersey Central Power & Light Co.
Sept. 12, it was announced company plans to issue and
Corp.
—
ital
was
$25,000,000
petitive
Hallowell, Sulz¬
Registration—Expected
writers
Merrill Lynch, Pierce, Fenner & Beane and
Kidder, Peabody & Co., both of New York.
reported that the company plans to issue
around May 6 $2,000,000 of equipment trust
sell
Co.
•
—
was
certificates.
1957.
Power
He added that close to
Cincinnati, New Orleans & Texas Pacific Ry.
(5/6)
\
Feb.
Underwriter
3 it was reported that company plans to offer
stockholders in May or June about $11,000,000
its
Corp. and Coffin & Burr, Inc.
Bros. & Hutzler.
1977.
1.
additional
(first to stockholders) may
by Harriman, Ripley & Co. Inc., The
Fenner & Beane and
mon
shares held.
Jan.
Underwriters
offer
Bidders for
any bonds may include: Halsey, Stuart & Co. Inc.; Blyth
& Co., Inc. and Kidder, Peabody & Co.
(jointly); The
First Boston Corp. and Coffin & Burr, Inc.
(jointly);
Harriman, Ripley & Co. Inc.; Merrill Lynch, Pierce,
due
Florida
will be supplied from internal cash with the bal¬
gram
March
on
$19,000,000 and $20,000,000. It is esti¬
that $5,500,000 of the amount needed for this pro¬
—Any common
&
2
the
(3/20)
-
berger & Co., Philadelphia, Pa.
mated at between
mated
share for each five
new
one
19 it
was
reported company plans to issue and
$3,200,000 of convertible subordinated sinking fund
sell
out.
Bank loans
000.
of
* Fischer & Porter Co.
permanent financing
some
record
Price—$20 per share. Proceeds—To increase capital and
surplus. Underwriter—Greene & Ladd, Dayton, O.
,.
*
have
Jan.
right to subscribe on or before March 4
22,000 additional shares of capital stock (par $10)
at the rate
31, W. F. Wyman, President, announced that "while
company
in
^
White, Weld & Co. and R. W.
(jointly); Salomon Bros. & Hutzler;Smith, Barney & Co. For stock: if competitive, Blyth
Co., Inc.; Merrill Lynch, Pierce, Fenner & Beane and;
Kidder, Peabody & Co. (jointly); Harriman Ripley & Co.Inc.; Smith, Barney & Co. Offering—Probably in May.»
body
Pressprich
Iowa Electric
500,000 construction program. Underwriters — Kidder,
Peabody & Co. .and White, Weld & Co. placed last bond
-
stock
into .1,792,824
j
debt and equity financing in 1957.
14
common
•
.
Continued
on
fege
42
42
Volume
(1030)
•
Continued, from page
New
Philadelphia Electric Co.
41
Feb.
England Electric System
by
Marrimack-Essex
determined
Halsey,
Bros.
Wood, Struthers & Co.
The First Boston Corp.;
Securities Corp.; Merrill Lynch, Pierce, Fenner
Kidder, Peabody & Co. and White, Weld & Co.
Offering—Expected in first half of 1957.
Lehman
Co.
&
and
Brothers;
New Jersey Power &
Sept. 12 it
sell
N.
(jointly);
Equitable
& Beane,
(jointly).
Light Co.
Co., Leh¬
(jointly);
Dillon, Union Securities & Co. and White, Weld
(jointly); Equitable Securities Corp.; The First
Corp.; Merrill Lynch, Pierce. Fenner & Beane.
Co.
Boston
announced
Service
Co.
for
it
11
during
1957.
pany,
Jan.
Inc.; Kuhn, Loeb & Co.; Blylh & Co. Inc. and Smith,
Barney & Co. (jointly); The First Boston Corp. and
Glore, Forgan & Co. (jointly); Harriman Ripley & Co.
Kidder, Peabody
Hutzler (jointly).
Salomon
and
Co.
&
^Northwestern Bell Telephone Co.
Feb. 26 it
sell
announced
was
company
Bros.
tion program.
petitive
short-term
retire
for
bidders:
probable
Halsey,
Feb.
1, 1989,
Kuhn.
Loeb
basis
of
Stuart
&
received
latter
part of
Southern
Jan.
it
21
—To
bank loans
repay
,
Bids
Southern
Feb.
1
it
7.
are
March
&
£00,000 shares of common stock to its stockholders about
one
21
share.
Congres¬
weeks
some
$40
good
Illinois
reception
accorded
Bell
Telephone Co.'s
offering of 31-year
million
debentures reflected the improved
temper of the new issue market.
Dealers
reported
cleaned
the
issue
new
market
week reflected the
institutional investors
mood
ous
more receptive
major institutional in¬
vestors noted by dealers and other
.experienced observers recently.
of
Moreover
tions,
not
action
of
setts
in
there
the
least
the
for
of
State
rejecting
received
were
a
most interested
indica¬
them
the
of
Massachu¬
the
single bid
issue, that
bond
parties
were
to
avoid
filling
their
is
destined
months
to
Interest still
in
better
in
centers, of
the
course,
the actions of the Federal
serve
Board.
But
there
has
Re¬
not
I>een
io
anything from that direction
suggest
any
change in
the
policy
twind"
of
as
might
"leaning
expressed
against
by
the
William
"straw
-
along,
do
for
fear
Accordingly,,there
What
was
Bell
in
-
of
in¬
are
-
net
came
interest
wind"
fact
Telephone
debentures
in
the
Illinois
bit
are
of
weeks
sold
a
carry a
interest
Securities
is
for
new
ac¬
the
end
Feb. 11
of
with
ties
debenture
market
Eastern
million, first
pipe line bonds
next
Transmis¬
offering of
mortgage, 20-
Southern
due
to
negotiated route
to open
lion
of
Ohio
stock
Electric
or
on
about
go
also
were
sumers
operating affiliates
of
American Telephone &
Telegraph
up
for
largest.
on
the
calendar.
Power Co.'s
Con¬
549,324 shares,
bids
Wednesday
is the
Southern Counties Gas,
rights ,to
share.'
with
1957,
Price
$2
—
per
locations principally for use by
which may include individual loca¬
tions, warehouse sites and shopoing centers; Underwriter—Allen & Co., New York. Registration—Expected
per
shortly.
bids the
opens
million
•
,
day for $15
same
Wayne Jewell Adds
of bonds.
*
(Special to Thf, Financial Chronicle)
Pouring
Life
Funds
in
insurance
than
more
DENVER,
companies
billion
$5*5,
primarily new-funds, into the na¬
tional economy last year, a com¬
pilation just
stitute
•
the
Insurance
bonds,.
That
was
a
up
other."tax
and
and
securi¬
mortgages.
Holdings of
dustrial
U.
were
connected
now
Co.,
Jewell
*
•
Kossuth
818
with
•
Seven¬
Street.
With Securities Inc.
,
'
(Special to The Financial Chronicle)
*.
DENVER,
McDonald
Colo.— Douglas
is
Securities,
Building.
Government
down about
a
now
Farmer's
Inc.
R.
with
affiliated
Union
miscellaneous
(Special to The Financial Chronicle)
bil¬
COLORADO
Frank
H.
SPRINGS, Colo.—
Slater
staff of El
Paso
has
joined
the
Management Co.,
Mining Exchange Building.
,
bonds
widest gain, about
$1.5 billion to $18.8 billion.
the
O.
—
With El Paso Management
S.
billion, while all other
and
showing
Colo.
from about $90.3 bil¬
earlier.
year
securities
these
$95.8 billion
corporate
government
exempt
lion
some
teenth
reveals.
began
year
is
Evans
Wayne
by the In¬
released
Life
of
When
categories showed some measure
of expansion with holdings of in¬
equity offerings, due to
through on a "rights" basis,
12,
develop
lion to $7.5
Several
holders,
March
-
With McCormick Staff
1
(Special to The Financial Chronicle)
struction.
did
plans
one share of Proper¬
shares of ACF-Wrigley held as
March 28.
on
bids, Tuesday, on $16 mil¬
30-year bonds, for con¬
newly formed
to offer
by the latter's
the offering to
Inc.,
the basis of
two
about
or
on
on
each
be
slated
Stores,
option
and
be
to
for
record
of
expire
expected
ties,
ahead
Corp.'s projected
&
of ACF-Wrigley
its shares of capital stock for subscription
companies had
outstanding in
Calendar
issue
Texas
some
(3/14)
announced this company, a
was
the parent company,
of
3.76%.
undertaking
via the
it
subsidiary
on
fi¬
debentures
coupon,
$40
made
Corp.
Co.
&
since
hence.
The
big
similar issue last
sion
year
...
Massachusetts
and Lee Higginson Corp.
(jointly);
Inc.; Blair & Co. Incorporated;' Coffin &
Burr, Inc.; The First Boston Corp. and White, Weld &
Co. (jointly).
•.
'■
V
Blyth
on
company
naturally
has large
3%%
ForwjjM
major
the
new*
week
To
—
Companies
Dec. 17 it was reported company plans to issue and sell
about $10,000,000 of first mortgage bonds in the Spring.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Equitable
un¬
Price—$6.75
interest
cost
The
of
than
week ago.
Both
several
of
To repay
—
Underwriter
&
Proceeds—To
plans to market
million
better,
offering
a
cost,
Mountain States Telephone's issue
a
the
The week opens with Columbus
further
that
Co.'s
off
by
Wednesday.
another
prove
the
an
certificates
trust
poured
A.T. & T.
in
Bell System Financing
,
lean¬
ahead.
needs
offerings
with
projected
anxi¬
seem
dications of willingness to look at
new situations.
ing to the belief that the market
nancing
July to
overstaying their market and let¬
ting
current
opportunities
get
away.
their
company
waiting too long
Proceeds
construction.
new
Co.
stockholders
parent company
net
plans to issue some1
securities, probably about $20,000,000'
senior
Wrigley Properties, Inc.
expects to sell
March.
a
-
announced company
was
-Western
Halsey, Stuart & Co. Inc.;
received
watched
observed, large
«
.
Co.; Kidder, Peabody & Co. and White, Weld
(jointly); Lehman Brothers; The First Boston
Corp.;/W. C. Langley & Co.; Harriman Ripley & Co. Inc.
Offering-—Expected sometime in July.
&
purchase from it of $5,540,000 equip¬
Probable bidders: Halsey, Stuart
mov¬
quickly, with bonds
Currently it is
this
company
equipment
to be
"pot"
ing out satisfactorily to investors.
The
rities
lor
(3/21)
$250
oft'
\\/
.
by competitive bidding. Probable bidders::
Haisey, Stuart & Co. Inc.; Eastman Dillon, Union Secu¬
(3/7)
bidders:
corded
/
-
be aetei mined
construction./ Un¬
Co., and the market reception
was
the
The
of
the
•
.
mortgage bonds due 1987.
stock,
for
Underwriters—
poL The First Boston Corp.
bank loans and for
Underwriter—White & Co., St. Louis, Mo.
ago.
the
of first
$70,-
by
of about 40,000 shares of common stock.
before
committees
announced
Ry„
(par $8); Proceeds—
..
new
V - >
selL
„
Pacific Co.
expected
McChesney Martin, Chairman, in
appearance
for
27 it
of
Proceeds
Co.
Stuart-Hall Co., Inc., Kansas City, Mo.
30 it was reported early registration is
Dealer-Managers — Drexel & Co., Philadelphia,
Pa., and Morgan Stanley & Co., New York, N. Y.
sional
and
l:- '<:
>
Bids—Tentatively expected
.
.
additional
company
Jan.
pro-
-gram.
his
Gas
stock
construction.
new
.
(6/18)
sale
(6/4)
West Penn Power Co.
Co. Inc.; Salomon Bros. & Hutzler.
share for
new
and
nr carry.
'■
common
$22,000,000 for
Securities &
on
ment trust certificates.
plans to offer about
For construction
was
Southern
Philadelphia Electric Co.
—
six
Salomon Bros. & Hutzler.
& Hutzler.
basis of
each
expire
September; 1957.
Salomon
a
its
stock
competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth &
Co., Inc. and Merrill Lynch, Pierce, Fenner & Beane
(jointly); White, Weld & Co. and Eastman Dillon, Union
Securities & Co. (jointly). Offering—Expected in August
Probable
Proceeds
to
Registration—Planned
determined
be
March
year on
issue
Expected
—
the
plans to issue and
$35,000,000 of first mortgage bonds. Proceeds
amount
each 20 shares held.
the
18,
announced
specified
the middle of the
to
Underwriter—Kidder, Pea-*
Dec.
Dec.
California
derwriter—To
.
announced company
for
rights
offer '
Washington Gas Light Co.
12, Everett J. Boothby, President, announced that!
company expects to raise about $8,000,000 through'
the sale of first mortgage bonds in the Spring of 1957.
Proceeds—To repay bank loans and for construction pro-/
gram.
Underwriter—To be determined by competitive/
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Blair & Co. Incorporated and Baxter & Co.
(jointly);.
Merrill Lynch, Pierce, Fenner & Beane and Stone &
Webster Securities Corp. (jointly); Kidder, Peabody&
Co.; Equitable Securities Corp.; Eastman Dillon, Union
new
May.
was
sell about
or
was
offer
capital
share
new
24;
Fund plans to
Offering
June 4.
share.. Proceeds—To increase
per
June
on
(3/11)
Bids will be received by this company at Room 1347,
6 Penn Center Plaza, Philadelphia 4, Pa., up to noon
(EST) on March 11 for the purchase from it of $4,950,000
equipment trust certificates, series HH, to be dated
April 1, 1957 and to mature in 30 equal semi-annual
instalments. Probable bidders: Halsey, Stuart & Co. Inc.;
Feb. 14 it
one
Jan.
directors authorized
25
be
to
Pennsylvania RR.
Bros.
of
record
to
of
-J.,
-
this
reported company plans to issue and
was
Pierce, Fenner & Beane.
•
loans
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey.
Stuart & Co. Inc.; Morgan Stanley & Co. Bids—Expected
com¬
Co.
&
on
owned
plans
shares
000,000 of 29-year debentures due June 1, 1986.
Pennsylvania Electric Co.
12 it was announced company plans to issue and
sell $6,000,000 of first mortgage bonds.
Underwriter—
To be determined
by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce,
Fenner & Beane, Eastman Dillon, Union Securities &
Co. and White, Weld & Co. (jointly): Equitable Securi¬
ties Corp.; The First Boston Corp.; Harriman Ripley &
Inc.;
new
—For construction program.
Sept.
•
the
$5)
bank
additional
that
by competitive bidding. Probable bid-/
ders: Stone & Webster Securities Corp; Merrill
Lynch;
.
.
it Southern Bell Telephone & Telegraph Co.
Co. Inc.; Morgan Stanley & Co.; The First Boston Corp.;
Eastman Dillon, Union Securities & Co. Bids—Expected
to be received around April 23.
Co.
50,000
(par
construc¬
Underwriter—To be determined by
bidding,
announced
was
March 1.
(4/23)
and
it
shares
&
intends to issue and
loans
17
stockholders
15 it
1,000,000 shares of
State Bank of New York
Price—$16.50
capital and surplus.
$30,000,000 of 32-year debentures due May
Proceeds—To
a
and for
(jointly).
reported
Virginia Electric & Power .Co.
-
Feb.
be determined by com¬
Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc.; The First Boston Corp.; Harri¬
man Ripley & Co. Inc.;
Glore, Forgan & Co; Kuhn, Loeb
& Co., Salomon Bros. & Hutzler and Eastman
Dillon,
Royal
/
r
Fund, Ltd; (Canada)
was
body & Co.,. New York.
Spring. / '
Underwriter—To
Union Securities & Co.
Ferry, Inc.
was
it U. S. A.
Feb. 25if
petitive bidding.
Underwriter—To be determined by competi¬
bidding.
Probable bidders: Halsey, Stuart & Co.
it
To be determined
bank
repay
new
Inc.;
$"15,060,000 of capital stock.
About
(amounting to $25,000,000 at Dec. 31, 1956)
construction.
first mortgage bonds, and an additional
1958.
Proceeds—To finance construction
Inc.;
To
—
sell
continuing'
reported corporation is considering public
financing, but details have not as yet been detei mined.
Financial Adviser—rSalomon Bros. &
Hutzler, New York.
Underwriter—To
that it is expected that
Proceeds
expects to
For
—-
by competitive
TMT Trailer
bonds (about $30,000,000 initially
will be issued and sold by the com¬
1956)
program.
tive
construction.
new
Underwriter
Stuart & Co.
Jan. 21
of Colorado
announced
was
scheduled for
plans to sell in 1957
company
noon
series of first mortgage
New York State Electric & Gas Corp.
was
to
up
loans and
Feb.
it New York Central RR.
are
expected to be received by the company in
March for the purchase from it of $3,825,000 equipment
trust certificates. Probable bidders: Halsey, Stuart & Co.
Inc.; Salomon Bros. & Hutzler.
$25,000,000 of
$20,000,000 in
(3/14)'.
company
★ Public Service Co. of Indiana, Inc.
Bids
Oct. 24 it
the
be determined by competitive
bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co. and
White, Weld & Co. (jointly); The First Boston Corp.;}
Blyth & Co., Inc. and Smifh, Barney & Co.;, (jointly);,
Lehman Brothers; Harriman Ripley & Co. Inc.
Bids—
Expected to be received early in 1957.
T
"/ ;
Eastman
&
by
was reported
company plans the issue and sale
$30,000,000 first mortgage bonds. Proceeds—To repay
of
bank
bidders: Halsey, Stuart & Co.; Kuhn, Loeb &
man Brothers
and Salomon Bros. & Hutzler
received
,
of first mortgage bonds. Underwriter—
determined
by competitive bidding.
Probable
be
Y.,
Public
$5,000,000
To
be
Co.-
company
any bonds,-to be
bidding. Probable bidders:'
Kidder, Peaboqy & Co. and
Merrill Lynch, Pierce, Fenner & Beane
(jointly); Hemp-*
hill, Noyes & Co. and Drexel & Co. (jointly); The First1
Boston Corp.; Eastman Dillon, Union Securities &
Co.;/
Kuhn, Loeb & Co., Blyth & Co., Inc. and Lehman Bro-thers (jointly); Harriman Ripley & Co. Inc. and Stone
& Webster Securities Corp. (jointly).
•
'
Haisey,
Oct. 8 it
announced company plans to issue and
was
will
Service
announced
was
determined
in New York,,
(EST) on March 14 for the purchase
from it of $2,250,000 equipment trust certificates to be
dated April 15, 1957, and to mature
annually to and in¬
cluding April 15, 1972. Probable bidders: Halsey, Stuart
& Co. Inc.; Salomon Bros. & Hutzler.
competitive bidding. Probable bidders:
& Co. Inc.; Kuhn, Loeb & Company;"
&
Hutzler,
Eastman
Dillon,
Union
by
Stuart
Salomon
Securities
it Pittsburgh & Lake Erie RR.
Lids
it
plant expansion.
Halsey, Stuart & Co. Inc.; White, Weld &
Co.; The First Boston Corp.; Morgan Stanley & Co. and
Drexel & Co. (jointly).
resultant company, to be known as
Electric
Co.
Undei writer—May
be
the
2
securities during 1957 to obtain capital tor its
able bidders:
first mortgage
This would be followed by a $20,000,000
Jan.
Proceeds—For expansion program. Under¬
writer—To be determined by competitive bidding. Prob¬
tric Light Corp., Lawrence Electric Co., Haverhill Electric
Co. and Amesbury Electric Light Co., into one company.
The Commercial and Financial Chronicle•
.
Texas Electric
.
was also announced
company plans to issue
in the second half of 1957 additional first mort¬
it
bonds.
gage
was announced company plans to merge
its subsidiaries, Essex County Electric Co., Lowell Elec¬
issue
14
and sell
Jan. 3, 195b, it
bond
Number 5616
185
CHICAGO, 111.—Ralph R. Oben-
With Inv. Service Co.
cbain
(Special to The Financial Chronicle)
DENVER,
Steadman
Colo.
has
—
Joseph
National
Bank
E.
La
Salle
&
Street,
York
New
Co., First
Exchanges.
Building.
added to the
has been
McCormick
affiliated
b'cOme
with Investment Service
of
Baxter
&
and
He
Co.
Co.,
members
Midwest
was
4
231
staff
South
of
the
Stock
formerly with
The Commercial and Financial Chronicle
...
.
Thursday, February 28, 1957
The
Indications of Current
week
Latest
IRON
Indicated steel
Equivalent
STEEL
AND
Crude
42
(net tons)
Alar.
3
Distillate
fuel
Residual
oil
(bbls.)
§2,456,000
*2.504,000
7,515,400
7,461,100
1!7,976,000
8,119,000
8.120,000
27.386,000
27,107,000
25,899,000
;
2,610,000
2,613,000
2,742,000
S.
U.
14,086,000
14,841.000
(U.
CONSTRUCTION
'
93,516,000
114.424,000
41,009,000
38,203,000
S.
of
cars)—yco. 16
STORE
output
$222,142,000
$440,059,000
163,177,000
81.297,000
213,905,000
128.469,000
140,845,000
120.434,000
117,801,000
20,411,000
51,049,000
Feb. 16
9,750,000
9,725,000
9,925,000
376,000
553,000
489,000
506,000
Feb. 16
102
*101
100
95
Scrap
steel
(per
PRICES
DUN
Electrolytic
&
tZmc
U-
S.
12,410,000
11,277,000
300
317
258
230
Crude
5.174c-
5.651c
5.629c
$62.90
$62.90
$59.09
$53.33
$53.33
$57.83
$48.6
Refined
SEED
PROD¬
of
(tons)
339,695
33.425c
35.475c
45.075c
Cake
Dec.
(pounds)
and
Produced
15.800c
15.800c
15.800c
15.800c
Shipped
(tons)
31
Dec.
178,477,000
14.000c
14.000c
14.000c
14.000c
13.500c
13.500c
13.500c
13.500c
Stocks
Produced
—Feb. 20
25.000c
25.000c
25.000c
99.250c
100.625c
101.250c
100.750c
90.84
Feb. 26
Bonds
91.40
31
237,267,000
227,164,000
378,216,000
146,516,000
159,780,000
185,720,000
122,138,000
127,954,000
117,038,000
187,819
._
___
186,106
163.049
274,304
317,153
312,428
327,846
57,069
._
327,720
272,591
_
95.68
Dec.
31
61,652
(tons)
120,204
123,585
Dec.
96.38
96.38
95.77
108.16
Produced
101.47
100.49
111.81
31
150,238
136,783
140,904
221,911
!_
Shipped
Hull
142,245
128,168
212,278
154,290
(running bales)—
Stocks
99.04
97.r 4
110.34
96.23
96.23
96 23
108.16
170,902
Stocks
(1,000-lb.
205.595
182,901
193,878
513
;
202.224
161,269
;____
-
Fiber
99.04
—Feb. 26
—~i~——i
199,941,000
(tons)
101.64
Feb. 26
:
91.11
(tons)
Shipped
Linters
AVERAGES:
192,182,000
226,931,000
169,019,000
Hulls-
22.500c
*~»j.—Feb. 20
—
173,802,000
229,605,000
155,988,000
—
31
Dec.
(tons)
Feb. 20
at
2,420,659
192,572,000
-
—
—
i—
(tons)
-Feb. 20
,
672,452
2,353,184
Meal—
—Feb. 20
a-.
569,890
676,669
2,122,861
-
(pounds)
Consumption (pounds)
31.400c
1,070,580
570,018
Dec. 31—:
Produced
-
649
526
949
bales)—
———
Feb. 26
89.23
89.37
89.09
102.80
Produced
774
1,086
-Feb. 26
Feb. 26
Feb. 26
95.32
95.16
94.71
106.39
Shipped
910
1,099
969
96.69
96.69
36.33
108.70
Motes, Grabbots,
97.16
97.16
96.38
109.60
Stocks Dec. 31
2,832
2,729
4,308
1,337
1,456
1,734
Feb. 26
3.25
3.23
3.21
2.82
1,234
1,152
1,314
..Feb. 26
3.98
3.98
4.02
3.27
Feb. 26
3.65
3.(6
3.72
3.07
43,700.000
38.850,000
45,505.000
2,024,000
2,316,000
2,712,000
Baa
Railroad
Public
Group
Utilities
Industrials
MOODY'S
Group
Group
BOND
YIELD
Produced
AVERAGES:
DAILY
S.
Bonds_
Government
Average
corporate
1
Aaa
Public
I
4.46
4.05
Feb. 26
Group
Utilities
'Industrials
3.88
4.06
3.96
3.15
3.99
3.27
4.48
„
4.09
3.37
3.93
3,93
3.98
—
,
Shipped
COAL
411.7
413.9
433.9
404.12
Feb. 36
219.422
—
3.96
—
OUTPUT
of
(BUREAU
OF
MINES)—Month
January:
Fituminous
3.93
coal
.Pennsylvania
SERVE
3.24
and
lignite
anthracite
DEPARTMENT
3.19
Feb. 26
4—__
INDEX
•
3.58
—Feb. 26
Feb. 26
Group
Group
COMMODITY
MOODY'S
3.81
3.99
4.47
Railroad
3.81
3.99
*
-
_
I
A
Feb. 26
—Feb. 26
Aa
(1,000 pounds)—
etc.
,
*
U.
13,363
14,632
Oil—
Stocks
at
corporate
mills
(pounds)
Stocks
PRICES DAILY
10,788
THE
COMMERCE—Month
(pounds)
16.000c
BOND
IN
BRADSTREET,
|
(pounds)
Shipped
45.700c
)
110.342.000
$624,301,000
Oil—
16.000c
at
148,399.000
$966,757,000
—-
(tons)
Produced
5.661c
$62.90
Feb. 20
York)
158,257,000
$1,011,501,000
(NEW)
&
COTTON
OF
(tons)
33.550c
(New
11,214,000
January
AND
at
Crushed
16.000c
Government
Average
11,946,000
QUOTATIONS):
(plim.tr. pig. 99%
37,572.000
1,859,000
between
—s
——
Seed—
30.625c
tin
MOODY'S
Cotton
Stocks
ton)
at
shipped
-u_—u
of
SEED
16.000c
Aluminum
Straits
COTTON
30.175c
>
and
STATES—DUN
Feb. 20
Louis)
8,667,000
213,114,000
;
INCORPORATIONS
—Feb. 20
idelivcreo
stored
INC.—Month
at
(East St.
219,567,000
13,443,000
2,349,000
-----
-
———
York)
(St.
1
goods
on
Louis)
Lead
$236,939,000
329,315,000
13,701,000
183,431,000
T
—1
—
exchange
BUSINESS
copper—
(New
Zinc
11/920,000
Feb. 19
Feb. 19
refinery at
refinery at
Export
$260,627,000
363,231,000
;
shipments
Stocks
Domestic
Lead
$290,532,000
31:
Jan.
—
Total
&
—
J.
of
BANK
December:
Feb. 19
M.
YORK—As
foreign countries
V*
PRICES:
7,580,943
OUT-
RESERVE
-
Received
—
ton)__
gross
(E.
NEW
ACCEPTANCES
FEDERAL
—
UCTS—DEPT.
(per lb.)
gross
OF
Imoorts
RESERVE
100
INDUSTRIAL)
10,828.231
7,431,136
;
10,050,000
Feb. 23
AND
'10,837,545
7,064,093
tons)—
:
DOLLAR
UNITED
Feb. 21
COMPOSITE
steel
December
STANDING
29,404,000
162.856,000
BRADSTREET, INC
iron (per
•
147,205,000
107,382,000
21,087,000
347,600
252,854.000
(in 000 kwh.)
(COMMERCIAL
BANKERS'
Based
$311,646,000
170,000
produced
(net
Domestic warehouse credits———.
INSTITUTE:
ELECTRIC
castings
669,219
160.805.000
■-
INDEX—FEDERAL
=
for
products
606,515
Feb. 16
(tons)
(tons)
of
steel
637,694
Feb. 21
SALES
Month
MINES):
lignite
steel
and
cf
Domestic
$374,710,000
45,00©
231,200
INSTITUTE:
678,319
Feb. 21
6,792,600
20.000
11,001.000
STEEL
657,269
Feb. 21
OF
AND
665,251
641,396
7.185.200
5,641,900
26,000
(net tons)—Month of January
Dollar
.
SYSTEM—1D4T-4D AVERAGE
METAL
675,966
ENGINEERING
'*
,'
—
*
BUREAU
sales
ingots
5,832,800
7,243,800
(M therms)
(M therms)_
sales
Exports
(no.
Ago
7.501,000
therms)
(M
gas
IRON
Shipments
77.850,000
37,042,000
Feb. 16
;
,
anthracite
DEPARTMENT
AGE
19,541,000
Feb. 21
and
coal
Pennsylvania
Pig
189,428,000
27,542,000
Feb. 21
Bituminous
Finished
191.373.0C0
23,614,000
35,812,000
Federal
FAILURES
199,895,000
22,552.000
91,385,000
municipal
OUTPUT
Steel
8,953,000
Feb. 15
construction
and
8,923,000
Feb. 15
construction
State
8,894,000
202,254,000
15
connections
Year
Month
of
therms)
(M
sales
gas
Mixed gas
13,730,000
8,632.000
construction
sales
gas
AMERICAN
2,723,000
14,685,000
NEWS-RECORDr
Private
IRON
Total
7,116,050
Feb. 15
(bbls.) at
ENGINEERING
7,431,000
Feb. 15
freight received from
Electric
2,459,000
Feb. Id
ASSOCIATION OF AMERICAN RAILROADS:
Revenue freight loaded (number of cars)
EDISON
2,438,000
(bbls.)
___
oil
month
7,989,000
26,327,000
Distillate fuel oil (bbls.) at
Residual fuel
ASSOCIATION—For
Manufactured
Stocks at refineries, bulk terminals, in transit, in
pipe lines—
Finished and unfinished gasoline (bbls.) at
Feb. 15
Kerosene (bbls.) at
Feb.
COAL
AMERICAN GAS
of
:
of that dates
Previous
December:
(bbls.)__
output
fuel oil output
Public
99.9
Feb. 15
to stills—daily average
output (bbls.)
Kerosene output (bbls.)
are as
Month
Ago
97.6
Feb. 15
(bb!s.
average
each)
runs
Total
*97.8
of quotations,
cases
either for the
are
Latest
Natural
output—daily
Gasoline
CIVIL
Ago
§96.0
in
or,
Year
Feb. 15
condensate
and
gallons
Revenue
Month
Week
43
production and other figures for tin)
cover
Dates shown in first column
that date,
on
PETROLEUM INSTITUTE:
oil
Crude
3
month available.
month ended
or
Previous
Week
Mar.
or
to—
Steel ingots and castings
AMERICAN
INSTITUTE:
operations (percent of capacity)
following statistical tabulations
latest week
Business Activity
AMERICAN
(1031)
STORE
of
tons)
tons)
SYSTEM—1947-4!)
Month
RE¬
Average— I(M)—
January.:
Adjust,ed for seasonal
Without
(net
(net
SALES—FEDERAL
seasonal
variations
*129
126
-
adjustment
./><
-96
«•
124
*223
j
95
NATIONAL PAPERBOARD ASSOCIATION:
Orders
received
(tons)
265 863
237,425
226.447
'
Production
(tons)
Percentage
of
Unfilled
(tons)
280,060
-Feb. 16
_
282.539
278,737
291,777
'eb. 11
of period
at end
-'64
95
95
389,413
450,170
430,271
545,180
ELECTRIC
'Kilowatt-hour
Month
99
Feb. 16
activity
orders
EDISON
of
Revenue
INSTITUTE—
sales
to
November
ultimate
consumers—
omitted)-.
(000's
ultimate
44,492,077
customers—month
PAINT AND
^
DRUG
AVERAGE
1»«9
ROUND-LOT
INDEX—
REPORTER PRICE
100
—
ACCOUNT
FOR
Transactions
Total
of specialists in
purchases
Number of
111.01
FABRICATED
Other
2
1,227,000
1,476,610
1,273,040
1,281.650
2
215,120
261.270
196,810
200,540
2
1,020,160
1,170,390
1,319.980
1.015,210
2
1,235,280
1,431,660
1,516.790
1,215,750
Feb.
2
273.130
316,120
293.500
258.360
Feb.
2
30,100
39,700
26,400
28,550
IFeb.
2
245,950
292,450
306,490
203,810
Feb.
2
276,050
332,150
332.890
232,360
u
sales
Other
transactions initiated
Total
Other
——
sales
sales
i
1
transactions
Total
floor—■"
sales
•Other
Total
the
on
purchases
Short
initiated
off
floor—
the
Feb.
purchases
110,650
104.780
93,280
461,043
521,422
596,404
524,467
2
572,868
622,072
701,184
617,747
2
-
475,268
members—
—Feb
1,883,111
2,284,934
2.061.365
2,015,278
.——Feb
357,040
411 620
327,990
322,370
,
sales
Other
Total
494.825
111,820
2
Feb.
Total round-lot transactions for account of
Short
492.204
2
Feb.
sales
Total sales
Total
382,981
Feb.
-
sales
Other
sales
Feb
1,727,158
1,984.262
2.222.874
1,743,487
Feb
sales
2,034,198
2,395,882
2,550,8G4
2,065,857
STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT
DEALERS
Avn
SPECIALISTS
EXCHANGE —SECURITIES
Odd-lot
sales
Number
by
dealers
Customers'
other
1,391,505
1,306,817
sales
Short
$66,902,133
$67,436,972
$63,371,893
►
Feb.
877.489
986.035
945.750
.Fob.
9,404
10.714
Feb.
STOCK
AND
THE
N.
V.
AH
222,030
224,550
191,930
203,050
222,030
224,550
540,750
2
620,170
521,260
534,450
Feb.
SERIES
—
U.
DEPT.
S.
i 530 600
626.590
411,210
406.530
8,978.060
10 553,430
10.584.710
9 821.460
9,508,660
11,179,930
10.995,990
116.9
117.0
117 0
112.0
*9.2
85.7
104.3
98 4
Feb. 19
farm
and
foods-:
Feb. 19
*104.0
80.7
81.9
84.0
70.7
Feb. 19
,_i
88.5
10X7
r'b. 19
:
th»»u
*Revi<-£d
Jan.
1.
figure.
1°57.
as
^Includes
against
Monthly Investment Plan.
one-half
cent
a
908,000
Jan.
1,
barrels
lr56
of
basis
foreign
of
126.4
*125.5
125.2
118.700
l-*i.7no
1^3.600
'
166,100
194,700
185,400
146
147
143
145
(units)-,
144
(43
9.200
•
|
5.000,..
PLANTS
IN
number
Jan.:
—
FACTORY
„
SALES
S.—AUTOMOTIVE
U.
FACTURERS'
of
—
.
VEHICLE
MOTOR
RESERVE
Month
-
ASSN.—Month
of
FROM
MANU¬
December:
vehicles—
of
on
799,109
700,740
-
—
576,708
695,096
82,913
cars
667,187
617,599
90,246
-103,603
228
passenger
NEW
CAPITAL
ISSUES
IN
GREAT
233
410
LTD.—Month
BANK
MANUFACTURERS
RUBBER
£29,199,000
£7,429,000
INC,—Month of
Passenger Tires
BRITAIN
Jan.;___
of
November:
(Number of)—
-2_
—
Production
Truck
(Number
Tires
of)
i
6,864,540
7,525,761
8,198,352
15,142,153
1,021,934
1,304,948
1,180.271
1,060,430
Tires
(Number
1,273,120
1,404,693
3,207,090
_!
3,167,971
2,584,425
206,240
231,389
ol )—
—
171.876
191,749
__.
Motorcycle.
(Number
Truck
and
Bus
304,309
712,126
772,728
Inner
of)—
— —
2,877,157
2.875,348
2,584,650
3,024,777
3,052,179
6,250,238
6,468.786
6.734,127
37,025.000
2,791,631
—
___:
—
Rubber
216,510
731,229
—
Inventory
Tread
6,470,814
15,606,584
—
.——
Production
Tubes
6.496,017
6,580.333
Bus
Passenger,
-
15,595.534
__
and
£67,169,000
ASSOCIATION,
(Camelback)—
Shipments
36,933.000
♦43.922,000
37.440.000
26,124,000
(pounds)
*43,544,000
35,586,000
(pounds)
Production
*28,055,000
23,770,000
$14,305,500
$21,328,458
120.2
crude
128.363.090
tPrime Western Zinc sold
pound.
—
Unadjusted
n
Inventory
THEASURY
?
o'
7,800
-
Inventory
;
other
11,900
4,100
(units)
FEDERAL
Production
Meats
commodities
THE
1941-49—100
adjusted
Shipments
*
foods
Seasonally
10.227,990
Of
100):
Feb. 19
products
OF
—
Production
Feb.
—
52,900
55.100
5,700
—
—.
Feb.
NEW
.
42,900
—
PRODUCTION—BOARD OF GOV¬
ERNORS
SYSTEM
Inventory
Tractor-Implement
Shipments
TRANSACTIONS
-
( 1947-49
INDUSTRIAL
Inventory
"
commodities
Processed
All
203,650
(SHARES):
Commodity Group—
Farm
191.930
STOCK
!
PRICES,
shipments
shipments
Shipments
ON
ROUND-LOT STOCK
sales
—
961,729
$51,163,343
.Feb.
SALES
Total sales
LABOR
940,027
$46,447,579
Feb.
—
Short sales
WHOLESALE
975,321
$47,370,141
Fob.
ACCOUNT OF MEMBERS
round-lot sales— * *
Other
868,085
$42,075,870
Feb.
ROUND-LOT
heater
water
Shipments
sales
EXCHANGE
Total
4,666
Feb.
—2„
FOR
.
5,723"
'
Round-lot purchases by dealers—
Number of shares
TOTAL
Gas
MIDLAND
sales
Other
,
shipments (units)
Gas-fired boiler shipments (units)
range
243,017
966,395
:
;
,
December:
Gas conversion burner
gas
367.827
1,190,414
$59,541,934
Dollar value
Number
of
338,892
276,045
ASSOCI¬
Gas-fire^ furnace shipments (units)
Domestic
,,
404,429
,
Number of buses
1,242,434
—Feb.
2
sales by dealers—
of shares—Total sales-
,
297,785
MANUFACTURERS
ATION—Month
'
December:
of
by dealers (customers' sales)—
Nupiber of orders—Customers' total sales
:
Round-lot
52,459,832
53,914,650
CONSTRUCr
of motor trucks.:
—Feb.
sales-
53,792,701
30
(AMERI¬
(tonnage)—estimated-—-
Number
:
short
APPLIANCE
Total
Odd-lot purchases
Customers'
Nov.
(tonnage i—'-estimated-
Number
shares---
of
GAS
of
closed
COMMISSION:
Y.
purchases)—t
Dollar value
Contracts
Shipments
OF-STEEL
STOCK
N.
ON
EXCHANGE
(customers'
INSTITUTE
at
STEEL
$681,750,000
>
purchases
Short
"
customers
STRUCTURAL
TION)—Month
registered—
.Feb.
-—Feb.
which
;
Total sales
i
CAN
Feb.
stocks in
:
ultimate
107.00
TOF
Feb.
Short sales
•
111.05
MEMBERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
r
.
111.24
Fcb.21
i.
TRANSACTIONS
41,751,008
$730,079,000
of
November
OIL,
44,613,469
$730,244,000
from
runs.
This.
IFascd
(Number
delive-ea basis
on
new
of
at centers
annual
orders
where
not
capacity
reported
of
tons
as
RECT
introduction
of
OF
133.459,150
«"ince
freight from East St.
Louis
MARKET
AND
lb S.
!
(pounds)
TRANSACTIONS
GUARANTEED
A.—Month
IN
DI¬
SEC'URITIES-
of January:
1,310,500
exceeds
Net
purchases
44
Volume
(1032)
1£5
Schreiber With Laird
joined
ment
Schreiber
J.
George
Mutual Funds
depart¬
of Laird & Company, Cor¬
will
*
Analyzes Investments
of M. I. T. College Portfolio
A.
ORANGE,
with
become
& Co.,
asso¬
Walston
538 William
the
J.—James
N.
has
Sebold, Jr.,
ciated
Street,
During
Inc.,
June
of
ment
as manager
brokerage department.
the
five
ended
years
30, 1956, the General Invest¬
of
Fund
Institute
most
of
Massachusetts
the
has
Technology
al¬
doubled, growing from $60,to
nearly
$114,000,000.
000,000
Income
A
creased
MUTUAL
In
investments
from
in¬
has
almost 60%.
research
just pub¬
lished, The Putnam Management
Company, manager of The George
INVESTMENT
FUND
a
Putnam
Fund
report
of
Boston,
termed
the
Kodak,
$3,000,000,
and
Phillips Petro¬
leum, Socony Vacuum and Stand¬
ard
Oil
cess
of $1,000,000.
ing
a
credit to the Institute's
Treasurer,
Joseph J. Snyder, and his finance
Ika/maC
n„
FREE INFORMATION
FOLDER AND PROSPECTUS TO5
YOUR INVESTMENT DEALER OR
income to help balance its budget,
therefore the fund must be
and
kept
NATIONAL SECURITIES &
RESEARCH CORPORATION
Established 1930
120
Broadway, New York 5, N. Y.
fully invested regardless of
market conditions.
maintain
In addition, to
purchasing
the
power
fund
must grow at least as fast as
the dollar depreciates. The policy
followed
for
many
of
managers
the
by
years
fund
has
the
been
"the accepted Massachusetts Trus¬
tee Practice of
maintaining a bal¬
ance
between high-grade fixedincome
securities
and
carefully
Incorporated
9Hf
in
--"I
fund
a
list
invested
securities
of
for
selected
the
fund
possible
GROWTH of CAPITAL
INCOME in the years
efforts
stock
has
been
maintain
income
through greater emphasis
on com¬
stocks.
mon
from
•DISTRIBUTION
ahead.
OF
BY
Per
Cent
of
INVESTMENTS
MM
Cash
\ Incorporated
CURRENT
Income Fund
INCOME?
,und
«««
U.
Govt.
Eonds
Stocks
*23:6
2.6
0.3
10.5
55.5
low
In
the
the
phasis
r.
stock
section
industrials
on
cost
period.
same
money
management.
difficult period of
a
rates it has been able
and
the
market value
in
million
of
excess
better,
or
is
book.
Never¬
theless, while the total fund
high by the standards of
dividual, it is by
relative
to
no
any
financial
quirements. Inflation and
the
con¬
income
for
pressure
Investment
re¬
grow¬
a
ing Institution have exerted
stant
in¬
large
upon
"Despite this pressure the man¬
has wisely resisted the
agement
temptation
to over-reach
for
in¬
come,
and
has adhered to the
time-tested principles of balanced
investing.
An
aggressive
towards
is prudently
grade
fixed
apprecia¬
high-
of
reserve
income
careful
securities.
balance
provides
oL
principal for the
flexibility for the mana¬
and
gers
and
counterbalanced
substantial
a
common
income
for
ap¬
good
the
maximum
income
real
of
Putnam
in
BREAKDOWN
prospectus
em¬
recent
Per
fund
your
is
available
Cent
OF
Market
from
investment dealer.
COMMON
June
on
1046
4055
63.5ft
Industrials
80.1%
Railroads
The Parker Corporation
Value
Public
1056
81.5%
Eanks
1.3
7.0
8 1
Berkeley Street
13.9
3.8
3.4
Insurance
8.6
5.2
3.7
and
0.2
2.6
2.1
Boston, Mass. '
'
&
issuance
for
Howard
the
announces
books
.
of
the
each
Yearbooks
tailed
descriptions
ket
tives,
investment
follows:
June
30,
1956
were
as
Standard Oil
(N. J.) $5,829,949; Christiana Securities $5,436,000; General Motors $8,704,350;
American
Gas
&
Electric
contain
Stock
completion
1957
fund.
The largest common stockhold¬
ings in selected industries at mar¬
on
Balanced
Howard
and Eaton
Fund,
Other
200
Year¬
The
new
complete
of
the
de¬
objec¬
policies
and
management of the funds, together
with schedules and charts showing
records and growth of each fund
during
the
past
ten-year
period.
$1,121,006; National Lead $1,298,212; General Electric $1,741,977;
Guaranty Trust (N. Y.) $489,507;
of
Insurance
Co.
America
Balanced Fund and Eaton & How¬
$815,616;
International
Business
ard
.
of
North
Machines $988,790; American Can
.$717,544; International Paper $1,-
630,198; and Sears Roebuck $696,200.
In
addition
were
utive Vice-President of Group Se¬
curities, Inc., $100,000,000 mutual
fund.
'The economy and the securities
markets may be tired after their
intense
activity
years,"
said
address
this
of
Mr.
the
Eastman
The
Books
business
bined
assets
Stock
record
on
Dec.
of
that
at
close
31, 1956, com¬
Eaton
Fund
last
Schreder
week
before
few
in
an
the
Se¬
curity Dealers of New Orleans at
The
Charles
Hotel,
"but
critically sick." He told
St.
neither is
his audience that while his firm's
basic
investment
cautious for
policy had
been
over
a year, and sdli
completely unsym¬
pathetic with "the panic talk we
now hear on every side."
is,
that he
"I
is
1957
see
not
much
so
year
which will 'curl
said
Mr.
one
which
charts
&
Howard
exceeded
tional
1957
"dramatic
that
at
relatively moderate and that "1957
will basically represent a sturdy
Schreder,
will
"but
as
more
appear
a
hair',"
your
for
long-term investment."
In
discussing
the
prosperous
long-term outlook, Mr. Schreder
said he sees a $600 billion level of
national output of goods and serv¬
over
the next decade, "with
ices
attendant
high levels of employ-^
income, spending, saving,'
etc.'Corporate ,earnings, as meas¬
ured by the Dow-Jones Industrial
ment,
Average,
should - •* increase frond
today's $35 per share level tnthd
$55-$60 area, dividends to around
$35 from today's $23 level.
the normal
(Dow-Jones ■>' Industrial)
should easily rise to 800 or more;-,
and stock prices could well double
the next
over
decade."
t
the
on
of
economic history as a
wave,'
perhaps more
graphically described as a sturdy
bridee to the greater prosperity to
Delaware Fund
come."
$47 Million
Schreder
Mr.
eral
Reserve
calls
its
praised
Board
the
for
"admirable
Fed¬
what
Delaware Fund's total net assets
he
restrictive
policy," the effectiveness
which, in his opinion, had much
climbed to
393
of
to
with
do
what he
"bottoming"
of the
month.
bond
"While
ready for a
vance,"
he
said,
yet
have
turned
the
market
perhaps
"the
ad¬
over-all
appears
the 13% decline
stock
most
already witnessed
the
past
year
very
likely
is
"not
enough," he reminded his audi¬
that
ence
the
individual
have
of
averages
majority
great
in
stocks
over
the
of
market
already experienced declines
over
better
20%,
with
known
closer
year
or
the
already
stocks
to, 40% .from
last
of
off
of
many
their
In
so.
market
short, he
tremen¬
a
correction
of
amount
tops
the
in
and
the
of
Linton
told
then
$37,760,795
preceding
Nelson,
shareholders
tributions totaled
030
from
that
1956
investment
net
income
realized
from
profits.
was
owned
by
and
The
fund
15,6*00 individual
institutional investors at year-end,
compared with 11,500 at the close
of
increase
lifted
number of outstanding
shares
1955.
the
to
an
Dec.
25%
A
all-time high of 4,325.331 on
last,
31,
year-end
of
share after
from
a
37%- cents
income and
62% cents from capi¬
tal
This
gains.
84.12%
assets
total
of
close
1956;
audience
of
price
value
charts
of
individual
stocks
14
major industries,
number
a
representing
which
seem
tractive
his
showed
ernment
and
to be
individuaYy at¬
price and in¬
pointed out that
several stocks of the utility, nat¬
ural
gas
and tobacco industries
seemed especially attractive.
come
now
basis.
on
a
He
With his background
mind,
he
we're
in
nature
defined
for"
of
a
in
thought in
the
"trouble
1957
in
as
"headline"
the
the
to
The
for
bonds; 10.73%; and cash,
;
;
report described boncls and
some
as
"now
increased
during
31, 1955.
the
third
quarter
of
1955.
1956,
bulk of the fund's assets
common
stocks;
In
are
the
still
this
Oil
holdings
industry
at
ment
amounting to $7.4
resources
the', fund's
common
year-end.
largest
stock invest¬
Other large
EATON & HOWARD
Fund
-rA U. S.
incorporated mutual fund, pro¬
viding diversified, managed investment in
Canada. For free prospectus mail this ad to
CALVIN
A
STOCK FUND
Managed by
objectives of this Fund
possible long-term capital and
income growth for its shareholders.
EATON
are
upon
request
24 Federal Street
BOSTON
,
Lord, Abbett & Co.
New York
Address—l_
&
HOWARD
INCORPORATED'
Prospectus
ONE WALL STREET, NEW YORK 5
Name
<
Investment
BULLOCK
Established 1894
1
EATON & HOWARD
BALANCED FUND
Common Stock Investment Fund
—
.
Chicago
Atlanta
r
—
*'
Prospectuses from
Rnss RuilJing
BOSTON
established
your
1*3*
SAN FRANCISCO
Investment Dealer
or
the abswe.
Los Angeles
-u-r
to
period
of rising living costs," the report
explained, "they are seen as the
most desirable type of investment
vehicle/ and more likely to par¬
ticipate to a greater degree in the
growth
of successful
American
companies." /
r
•
in
kets
since
been
on*
.
were
assets
Dec.
more
point out, however, that "while
Delaware Fund's holdings of gov¬
ernment
and
industrial ' bonds
million—15.74% of total
mar¬
pre¬
;
than' they
have
time."
It went
he
net
1.76%;
industrial
.(convertible), 2.04%; gov-,
stocks,
bonds
attractive
point,
for
accounted
stocks
the
at
ferred
1955.
Delaware's
of
with
compares
$10.97 on'Dec. 31,
stocks
this
12
Net asset value at
$10.96
was
distributions
3,443,704
from
months earlier.
preferred
trate
se¬
curity
of
attractively-priced stocks avail¬
today's market." To illus¬
dis¬
$1,468,-
a
1.35%.
able in
*
President,
thousand individual stocks, it
seems to me that there are a
lot
one
at
year,
record
$2,561,402
Common
more
the
increase
25%
a
of
fund's annual report shows.
W.
already."
action
of
close
and
upward."
Conversely, he stated that while
in
the
high of $47,401,-
new
1956,
resources
over
not
continued
of the bond market
trend
to
considers
a
during
money
—constituted
on
-
Assets Now
"story" of the healthy rolling ad¬
justment that has been going on
funds
---
as
in business and the securities
both
Thus,
value for the average
stock
$249,000,000, an increase of approxi¬
mately $28,000,000 over combined
of
addi¬
any
adjustments,
while
times," should be
'healthy
values
&
more
continuously following the market
&
Eaton
Fund
1.2
6.1
___
for
all
of
us even
ular stock average is going, but by
Howard, Incorporated,
Boston, management organization
30
2.7
Utilities
consolidation
sifting
a
"Personally," said Mr. Schreder,
"J can't tell you where any partic¬
Year Books
STOCK
Eaton
of
year
concluded
no
depression or economic bridge to greater pros¬
'panic' is likely for perity and it will provide some
1957,"
according to
Harold
X. excellent investment opportunities
Schreder, economist and Exec¬ in bonds and particularly in stocks
stock
Issues 1957
INVESTMENTS
each'■
on
coming
Depression
or
He
market
dous
Eatoii-IIoward
years.
A
Financial Chronicle
that
assurance
stock
the
Institute."
the
continued
adjustment,
last
Managers.
considerable
available data gives
seems
means
M.I.T.'s
$40
over
is
added, "there has been
increasing
an
in
■
portfolio, the
notes
rise
Paper..
St.
i„
common
fund's
report
,1
report
substantially
to pay the Institute 4%
for
...
is
40%
skillful
to
donor,
9.3
54.4
Putnam
the
over
conservation
0.4
7.6
33.7
Commercial
,
the
Throughout
This
*22.2
__
•
■SHT-SS?
0%
12.6
;
Stocks
'Includes
,
|
0'i
11.2
186%
Massachusetts Institute of
tribute
by
1056
7.3
Estate'../.
Common
30
41.5
Bonds
Preferred
Real
1055
1.3%
S.
Other
June
on
Institute's
Technology General
Investment
Fund,"
concludes
the
Putnam
Management report, "stands as a
tion
Value
104(1
for
living
the
This
out.
than
more
of
1956,
stocks
TYPE
Market
the
of
$1,303,206 in 1946 to $3,772,-
in
proach
and
INVESTING
increased
real
llfi
M
percentage
reflecting the managers''
to
10 years, invest¬
past
stocks."
common
common
steadily,
[tlablithed 1925
mutual
The
in
Investors
A
selected
the
"The
nology, the Putnam report points
out, depends upon its investment
WRITE FOR
ex¬
Additions dur¬
included Ford
year
income
ment
committee.
Massachusetts Institute of Tech¬
in
General Fund has increased
points
and
past
all
and
Over
Fund's
history
California,
I.B.M., and reductions
took place in Thomas A. Edison B
and United Shoe Machinery.
597
year
of
the
Motor
five-year period one of the
"most
dynamic" in "the General
95
nearly
Carbide,
Union
that
see
and
Putnam Fund
Walston Dept. Manager
there
evidence
By ROBERT R. RICH
Sebold, Jr. Now
EAST
The Commercial and
.
.
1957 Panic
"While
poration, 61 Broadway, New York
City, members of the New York
Stock Exchange.
J. A.
.
Group Economist Discounts
has
III
institutional
the
Number 5616
>
•>"*
W
Volume
5616
Number
185
The Commercial and Financial Chronicle
.
(1033)
industry holdings included: stefd,
10.11% of net assets; electric util¬
ity,
7.03%; natural gas utility,
5.39%; machinery,-4/79%; electri¬
cal equipment, 4.21%; metals and
mining, 4.03%; chemical, 3.28%;
and
1
The Florida Growth Fund
«,
The
critical
A
—
dividends
and
"However"
,
Utmost
likely
are
to
of
Wall
Street-ers
have
found
us
What to do
The
the
answer
tion of individual-securities must
pe
"s
during the coming
adidtion," it continued,
In
e c u r
i t i
.
will
e s
have
to
B.
He had served
watched closely for their reactions
the pressures,, catalytic forces
trust
sifting-sorting
which
"Industries,
.
The
processes
the
and will be at work.
are
airlines, •; electronics,
be
viewed
with
•
tax
structure
and
;
A
commentary
for
-It
him
to
.
off
hard
who
facts
recognize
and
these
the
meet
'
■
up
around
of G. D.
of Colorado
rp
$10,000,000
in
assets—will
or
managed
by
Y
Aoo
ihrtc
,
were
Thlfw^n
his
trom the net assets
Ala
$95,038,012
'
which
program
Cfoic
qi
1a
for
each
of
the
+
+
.to
8,117,926
shares then outstanding.
Mr.
Lovelace
said
1956
was
a
others.
ordinates
tation
the
with
salesman's
presen-
follow-up and
economic pattern
and act accord¬
The
units:
lhandbook
Eastern Investment Co.
is
Regional New Jersey
Broad
has
Co.
Investment
Street
in
Red
used
their
of
157
Bank, N. J.,
of
two
entitled
"A
Investment
21,
of
Manual
by dealer representatives
clients,
discussions
five
and
folders
total
cross
currents in the American
net
assets
i
of
of
the
Manual
each
—
of
Central and which highlights a different phase
Southern New Jersey wholesaler of the fund's activities.
Any one
of Financial Industrial Fund, a $65 or more of these folders may be
been
-million
in which inex-
Jack
investments trust,
Skakandy,
Eastern's
Presi¬
franchise
granted by
FIF Investing Associates, Inc. of
New York City, Eastern United
States
distributors
of the Denver,
Mr. Skakandy said the franchise
and
all of New Jersey South of
including New Brunswick. He
added that his company
tinue
fund
its
will con¬
and mutual
brokerage
retail operations
Bank
its
Eastern
in the Red
role,
will
send members
of its
several
The
of
local investment
various
grams
to
dealers with the
investment pro¬
offered by Financial Indus¬
planned
trial Fund.
"One
the
weU
as
shares
Feb.
at
at
booklet
DOOKiet
all
an
nnp
ual
oubfish
Manual
facts
tacts
which
only
as
of
one
in
a
fully managed fund in mid-1953
a
by vote -of; the shareholders. Its
current portfolio is 98% invested
in the
stocks of 52
common
in
and
promising
energy,
automation
have
diversification
1
has
Fund
months
com¬
new fields like
electronics and
a
added
to
further
the
portfolio,
large proportion Of
additions
include
„
in
the
/
of
our
important
most
f
«A
fied
his
commenting
Dr.
position,
Man
in diversi-
on
-
_
_
ieUm; National Lead; Smith, Kline
& French; St.; Regis Paper, * and
Union Bag-Camp Bag.
-
Blylh Group Offers T *
Missouri Portland
thAhanT'tlrf
£ th<Tllftpr h^lf of
grouPs 111 tlle latter half of
Cement
A
Capital Stock
secondary offering of 101,233
shares
Missouri
of
Ce-
Portland
ment Co- $12.50 par value capital
stock is being made today (Feb.
group, of
investment
2g)
firms headed by Blyth & Co., Inc.
The stock is priced for public offering at $60.50 per share.
No part of the proceeds of the
to
F.
Roos,
15,416.
were
When
first
the
offered
fund's
to
the
by
a
wiH
sale
the
8°
company,
agement
According
"This
pany,
.
Net
asset
31,
value
1957
was
pared to $4.51
the
fund's
tbe fund, states in began
effective
selling
and to conduct
meetings
on
or¬
Trenton,
are
■
its
New
Atlantic
wholesaling
Brunswick,
City,
Camden,
Asbury Park, Long Branch, Ocean
City and Cape May.
-
which
new
sales plan
helps
mental
Investors
a
share
per
$4.83,
year
as
on May
When
ago.
continuous
■>on
com-
offering
13, 1955, the net
imately 2,500,000 barrels. Approximately<90% of the facilities at
these plants hfcve been completed
since
the
of World
end
these
an(j
plants
War II,
among
are
the
questions that
may
coordinated
evuw
Manual
answer
arise.
of
Data
also
1—
plans to
grams
Vtt
Long
print
—
Fund,
Growth
Stock
and
Company
-
-
J
that
ably expand in 1957.
full
of
the
sales
fund>
,
were
year
a new
reported
increase
.
the
4.
1956
high.
were
of
31, 1956
at $10,633,862—an
39%
earlier figure.
at
Net assets
of Concord Fund on Dec.
,
for
,aca
calendar
$4,517,760,
pro-
Diversified
Fund, Inc.
invested
in
The
company
$20,397,000
for
reported sales of
compared
1956
with $18 631000 in 1955
earnings
1
Diversified Invest-
Inc.
95%
stated
tors
sales
approximately
the industry.
Net
earn-
common
stocks of
companies
w
' <t'o o2q qoo and $3 009actively engaged in the general in§s weie $8,»zy,uuo ana ^,uuy,
field of electronics.
000 for the respective periods. The
The fund's investment adviser, 1950 earnings were equal to $5.15
John P. Chase, Inc., of Boston
share
compared with $4.05
^
for two of the other funds
it sponsors
ment
and
in
&
,
similar
proceeding
Company, Inc. of Chicago, underwriters and national distribu-
sales
,
been
have
cording to W. George Potts, Con-
tne
makes
be
cord Sales Director for A. C. Allyn
and
Ana
«
t
W.
any
It pro-
pre-call
material.
can
the market readjustments
of Electronics Investment Corporation, Charles E. Salik, President,
stated that the fund's assets are
Sales of Concord Fund for the
jagt qUarter Gf 1956 rqse to $2,197,337—an increase of over 210%
from the previous quarter, ac-
present t unaa-
and
as
more
.recent months continue."
,
,r
investment aeaiers
Hugh
Among, the cities in which the
•
com-
4^7
tt
will conduct
Long
peri¬
training easier."
their
behalf."
activities
made
that
investment
advantageous
Rasmussen,
the
of
expectation
tbe
.
toiiow-up
build
W.
to
Vice-President
vides
sales
a
May 13, 1955, net assets producer of several types of cewere $9,150,000.
As of Jan. 31, ment Wlth Plants in St. Louis, Mo.,
1957' net assets were at an all and near Kansas City, Mo. The St.
time high of $13,466,893.63. This Louis plant has an annual producrepresents a growth of 47% dur- tion capacity of 5,000,000 barrels
ing a period of 20 months. •
and the Kansas City plant approx-
Public
Jan.
.
this year-end
Charles
T>1'esldelll:
smoother
are
stocks.
common
In
policies and man
the fund.
?
of
kandy explained, "will be to help
ganizations
j
six
Lud-
Allegheny
_
and
last
lum-" Anaconda; "British " Petro-
favorable earnings prospects^ for
shares
of the investments
refer to
to
re-
have
.;
/ ■/ <
Originally a growth preferred
stock fund, K-2 was changed into
J9?.7'ra^n J?F i°J'
285
V^clSll
The 1956 year~end reP°rt jus*
released hy Concord Fund shows
cash' short t^rm notes and gov"
ernment bonds at $4,237,226, representing approximately 40% of
the entire Portfolio. The balance
the
to
would
period from Oct. 31, 1956 through
Jan.
31,
1957.
The number of
shareholders increased from 13,-
i
~
40%
fieures
tigures
iitAratnrA_tv.A
results
it
t^OllCOTCl Jl tlllCl
supporting
talking
he needs
nf
and
ana
the five
When
niPPP
to
deader
^snosal fn
the
tne
in
i
a
manv
the
as
his
circulated
client,
usine
total
climbed to $37,590/
21,
^
investment
havIL
folders.
of
nlates
same
the
sures
services to these firms," Mr. Ska¬
1
as
the
increased its net assets 23% in the
pin-pointed
special interests.
innovation
folders
New
staff
Jersey communities to familiarize
/firm
used
or
invested,
.»
wholesaling
new
executive
odic
client
the
Dec.
on
investment
net
area.
In
them
Stock Fund, Inc. reports total
of $14,157,390 on Feb.
1957,
compared
with
$11,-
assets
^
direct mail follow-up.
was
Colorado, fund.
covers
with
to the client's
dent, announced.
The
left
$26,806
Had
jncome distributions also been
tremely important," Mr. Lovelace
commented.
appointed
mutual
beei worth
1956'
31'
steel,, oil, metals, chemical
machinery companies. ■.
year
vestment selectivity will be
1957, compared with $22.42 per
Electronics Investment
Corposhare on 511,085 shares outstand- ration enjoyed its greatest growth
mg a year ago
during the past quarter, having
—
sec-
realized profits, the capital would
have
will be another
p
total
outstanding
with
year charts showing a hypothetic
cal $10,000 investment reflect inT
teresting performances. ..Including
which
456,513 a year ago. Per share net
asset value was $22.33 on 634,100
Men," which
actually separately published
tions
mon
net
Pa*d H*01*/net investment income.
: s?.ne.e - the.u£u"d s. °?.J®ctlv,ei >3
caPrtal growth, the traditional 10-
economy, it is our belief that 1957
direct
well-illustrated
a
face-to-face
in
FIF Fund Wholesaler
Eastern
for
Data
consists
program
basic
year end, up
approximately 301,000 from 195&
The annual report to sharehold©rs points- out that the capital
value over the past decade has
increased 139%, including rein*
vestment of capital gains distributions of $4.81 per share.
In
addition, $3.24 per share has been
atomic
domestic and international,
tight money situation, and
the
„
ingly."
2,105,183 shares at
panies representing 16 industries.
Investments in special situations
™
Thus he said the company has
|L a£®Ja 1ta^en a more conservative invest.."All
in all,"
the report con¬ mail brochures on Fundamental /jit/
J!?/™? qXt
i" ™ent position, with a greater percluded, "we are of the opinion Investors, Inc., was recently ah'or
u
i
centa8e of assets in cash and U. S.
that 1957 will be a year of splen¬ nounced' by Hugh" W.'Long and
equal to
per snare on
Government obligations. Increasdid opportunities for those who Company, Inc., 'of Elizabeth, N. J.,
' 6 shares then outstanding.
jng emphasis is being placed on
carefully appraise the changing sponsors of the fund.
Scudder. Stevens & Clark Com- industries
and companies with
prices will certainly
fare better than
brought the
participants to
held
a
total
of
of
They
ties,
°n
' P®r * are °n
co-
earlier
year
«rAw!*i'7«
air?TxC'
$76,456,174, equivalent
$9.42
number
11*346.
year of decline in prices of bonds
and many leading stocks.
"In view of the many uncertain-
CfonflnB
vpnnrtc
leports
$18,581,838
r?
the
Report Assets
Program
a
shareholders
new
Hie cumulative value of reinvested
10.074.300
and is after capital gains distribu-
the
Tup
Inc.
of
was an increase
O'Brien, Vice-President and director
Starts Dealer
unique
,
f11
St.
? JoSriQ a share on T^1S
securities. the
to $9.43
Scudder Funds
A
i
hopes to start
so
be
Hugh W. Long"
con¬
of
was
-
'+
Total net assets
Fuel
,
$7,334,103,
substantially from $5,656,541 in
"
Searle & Co. and Frank B. Bateman Ltd.
Sales
1956
1955
•<..
1
gain from sale
Securities'Corp., and di¬
fund—which in the next month
new
with
in
per
average
a
Pittston Co. director Franklin
sumer's demand for better quality
at reasonable
•,
.
6,986,445
realized
securities
director; Fred M. Kirby,
be
merchants
American
of the Finance Committee
..
indeed
of
shares '
the
on
Net
later
was
9,116,928 average
outstanding
on
shares outstanding in 1955.
Florida Growth Co., whose shareholders are Edward
Ball, trustee
of Alfred I. du Pont estate; Allan P. Kirby, President and director
of Alleghany Corp. and New York Central
.
highly selective, espe¬
cially since he has satisfied his
postwar thirst for a new home,
car, appliances, clothing and other
items.
He'll want to
put more
money aside, too, now that he can
realize a greater return on his
savings. The manufacturers and
is
The
the
the
coming
year
stated, in part: "1957 may well
prove the consumer's biggest year
to date.
Greater bargaining
power will make it possible for
.
share
gathering of the clan in Palm Beach of men
who are putting together a wealth of business experience in
order to embark on this new venture/
which, from all reports,
will have its own share of young blood, too.
ef¬
on
director
Iron Corp.
&
•
further
outlook
and
He
income for the
equivalent to 26.5 cents
year,
are
Vice-President and director.
as
rector and Chairman
present
operating
he
career
share
ers,.and shares outstanding. •
Net assets jumped more than $6
million to $26,819,563, while 2,670
total
during the year. This compares
with $1,852,127 in the preceding
V,
Cashier of
now
in his
Alex. J. Disher, retired,
in the investment banking business—last with
He retired
President
a
more
ficiencies."
Cassell,
Earlier
fiscal
•
investment
number /of
Assistant
28 years.
realism, less over-enthusiasm and
due consideration of their
Carl I.
Trust Co.
the
for
31, 1956, Jonathan
ended Dec. 31, 1956 was $2,equivalent to 27.5 cents
per
.!
Tucker, Anthony & Co., New York. Charles G. Terry, a director,
was formerly
with Schoellkopf,. Hutton .& Pomeroy, Buffalo, for
unquestionably still promis¬
but
these
glamour groups
should
fund is
Beach and
Amctng the directors of the fund
metals and mining, to name a few,
ing;
Palm
who spent 30 years
to distort their immediate outlook.
are
of
in-
gains from
502,609,
Secretary of the New Rochelle Trust Co. in. New
Rochelle, New York.
...
•
.
tinized,* particularly when their
long-term growth prospects tend
Chemicals,
Treasurer of the
Bank
was
too"
the
report
"must be carefully scru¬
went on,
Net
....;
>
.
..
investment
net realized
securities
.
Vice-President in charge of the bank's corporate
as
,
Lovelace, President, announced
year
department.
net
_
ers*
Another officer of the fund is Arthur E. Burke—a Vice-Presi¬
For 40, years he Was with Guaranty Trust Co. in New York.
„
for
Company
in the annual report to sharehold-
director, Vice-Chairman and Vice-
a
of
year ended Dec.
dent.
be
to
and
was
set
and
sale
President of Blair.
exercised
year.
He
Keystone Growth Fund K-2 had
a
15.4% increase in capital value
for the fiscal year ended Dec. 31,
1956, and reached new highs in
net assets, number of sharehold-
come
.
York.
$27 Million
of
were
up
in New
Investment
America's net assets increased to
over
$95 million and new highs
by
offering
its
Inc.
Assets Reach
Reports
Highs
New
the fund is Frank B. Bateman who also heads the
partnership bearing his name in Palm Beach. For the quarter
century ended 1955, Mr. Bateman was associated with Blair & Co.,
"the
Keystone Fund
America
that
of
called the
mutual fund. Announcement of the first
own
Beading
^. cautioned,
it
be
and skill in the selec¬
care
all
shares was made last week in "The Chronicle," with the
report that Florida Growth Fund, began offering 2,000,000 capital
shares of $5 a share.
Frank B. Bateman, Ltd. is the sponsor of
the fund.
'
companies' profits, but—taken as
a
whole
corporation earnings
good in 1957/
But the
problem still remains.
pleasures of loafing have worn off?
number
starting their
of
Investment Co. of
when
or
man's life is approaching comes to
a
best climate.
after the
observed that "the
higher costs of doing business,
combined with greater competi¬
tion, may possibly squeeze a few
Story
retirement
after
lot of people move to Florida to live in what is
nation's
report
what-to-do
later.
or
A
of
period in
sooner
retail, 2.69%.
The
problem
15
.
from
the
year
profit margins
and
share in the preceding year
of specially selected elec- per snare in tne preceaing year.
tronics companies could conceivSince 1953 the company has paid
^
This could
be due to the continuing consolidation experienced by electronics
companies, increased defense
spending, and larger individual
orders awarded to
a more
}
t
t
dividend
the
quarterly,
of
50
cents
.,
,
,
„
per
,
-
share having been paid Feb. 7,
1957.
In addition, the company
limited paid stock dividends of 20%. in
"omber of companies which per-
margin^ and/or
dividends
cash
pric^
lower
increased sales and profits.
with
3954^
1956.
2^%
in
1955
and
3%
in
There are 742,789 shares
outstanding.
46
(1034)
The Commercial and Financial Chronicle
•l
hourly index geared to the actual
broken down into
industrials, rails and utilities, will be based
90% of the total value of listed common stocks. Prompt
on
elaborate
and
war,
provided by newly-developed elec¬
development.
servicing
nor
ties
committed
are
to
tronic
new
stock
in
era
the
evaluation
market
ushered
in
Feb.
Poor's
with
27
that
nouncement
science
was
the
an¬
Standard
&
Corpo¬
hourly
of
The
trials,
rails
utilities,
and
will
on
nel
be
per¬
unique
a
the
York
stock transactions." The electronic
common
stocks
on
New
Stock
Charles
Ex¬
change,
Schmutz
A.
The
index
new
Standard
described
was
Poor's
&
by
the
as
most
complete and technically accurate
of
measure
vised.
the
will
It
market
March
starting
Stock
of
Exchange,
Service
News
de¬
hourly,
nationwide
by
4,
services
ticker
ever
carried
be
American
the
Commodity
the
Cotton
the
and
Ticker. Computated on
Electronic
Datatron
will
Burroughs'
computer, it
available opening,
also make
closing, and high-low data.
"We believe," said Charles A.
Schmutz, President of Standard &
index will clear
up once and for all the confusion
that has always been generated
by the apparent lack of relation¬
Poor's, "the
new
fed
brain
rejects
extraneous
any
appeals
for various
that interrupt the flow
charities
of trading
reports from time to time.
learned
even
to
It has
ticker drops digits when
it falls behind the pace of trading
the
floor of the Exchange.
Sounds
complicated,
and
lation of the index is
accomplished
matter of
a
sec¬
Actually, transmission of the
result
of
the
reporting agencies
longer than the compu¬
will take
tation itself.
Even
component
so
the Standard
500
and
ship between market averages and
the prices and movements of in¬
will
be
dividual stocks."
sive averages reach the wires.
Unlike averages now in general
Mr.
use,
index is
of
age
Schmutz said, the new
geared to the actual aver¬
prices.
stock
monthly
The
the
of
summary
latest
New
York Stock
Exchange reports that
average
value of all issues
the
listed
Dec.
on
Standard &
47.40
31
$49.12. The
index"'stood at
was
Poor's
that
date,
contrasting
readings of between 200 and
for most leading averages.
on
before
its
available
the
much
The 500-stock index will
new
index,
a
to
investors
provide
realistic yardstick for com-
tional
Prepared
methods,
sarily limited to
blue
chip
not
mav
market
which
in
move
as
may
or
the
If desired, the
could
easily
stocks
common
neces¬
unison with
whole.
a
conven¬
are
small number of
a
stocks,
index
new
by
these
on
include
the
Stock
However, Standard &
statisticians
settled
on
the
present size after carefully win¬
nowing from the stork list all is¬
sues
are
that trade too infrequently or
otherwise not representative.
To
provide historical continuity,
parison with the ups and downs of the new indexes have been tied to
1 their own holdings. In December the earlier series, all of which have
•
the Standard 500 showed
of 1.48
vance
net ad¬
a
points and the Stock
Exchange average value
a
$1.80.
averages
The widely used
rise of
showed gains ranging up to 26.69
points. Sensitivity of the new in."dex is emphasized by the fact that
each
one-point move reflects a
change of
been
over
to
the
base.
new
old
and new indexes
merge into units affording a com¬
plete market history.
The pat¬
tern
of
the
indexes
has
from
market measurement. The price of
each stock is multiplied
by the
<
number
of
shares
business
Terrace Avenue.
Reynolds
outstanding, to
stockholders everywhere. This ag¬
associated
with
ton,
&
average
which
is
of
aggregate
accorded
a
values,
base
value
of 10.
analysts have long
agreed that this is the most accu¬
rate
method
in
It
use.
has
been
employed by the agency since 1926
to compute a 480-stock
weekly in¬
dex with a different base. Until
how,
-
I
been
mit
however,
too
the
method
time-consuming to
compilation
of such
a
has
per-
broad
;ineasure within the tight limits of
,
J.
Dana
New
York
Blakney
ftourly, or
even
daily publication
I schedules.
the
Co.,
at
34
formerly
has
will
baE *n
within
have
a
men
today.
sonal
"Average
rise
a
and
it
what
from
factory
$84
at
will
wages
present
firm
120
in
be
increase
an
hauiru*
the
of
estimated
are
subsidiaries,
Monongahela
Co., The Potomac Edison
Co.
and
West
Penn
Power
comprise the West Penn
Electric. System,
are
engagedl
ft®"and
of
The
ergy.
e^i
System's
in,
territory
Pennsylvania,
tlal cuts
the
in
Administration's
miles.
square
The
area
DIVIDEND
NOTICES
prosperity
and progress
this great Ameri¬
expansion will not
be interrupted by war," Kiplinger
will be
marred
TENNESSEE
by
outbreaks of violence, continuing tension, but without an all
engulfing world
of the
GAS
.
TRANSMISSION
The nations
war.
COMPANY
world, face to face with the
grim
realities
of
atomic
HOUSTON,;
and
AMERICA'S
hydrogen war, will do everything
possible to avoid the catastrophe
of having their cities crushed into
twisted,
blackened rubble
ultimate weapons."
"The
forthcoming
The
"will
*
TEXAS
OF
•
NATURAL
has
been
declared
on
the
33
of record
on
March .8, 1957.
(
J. E. IVINS,
Secretary
without any major
depression, be¬
cause
all elements of both major
political parties are committed to
step in with heavy Federal spend¬
ing to forestall an economic bust.
"The
one
that cuts
strongly
across
divisions
all
political
held
belief
all party lines and
both
major
within
parties
unrestrained
is
that
cycle
of
another
boom
would
bring an end
competitive system.
farmers
share
of
will
now,
to
and
the
food
total
decline
10%
20
and
to
our
proces¬
national
from
years
-
about
from
the
industrial
system
and the production of food
is further mechanized.
now,
as
grows
"More of the money each
family
in will be spent on recrea-
,
takes
tion
and
education
and
a
.
smaller
Bur¬
the
BOND
Exchange, it has
Nelson
and
Everett
PRODUCER, ANALYST and
E.
Steele have become affiliated with
Colorado Investment Co.,
Inc., 509
Seventeenth
Street.
All
were
formerly with Carroll & Co.
ARBITRAGER.
cdmjMA&cvrv
RELOCATE.
210TH
A
c
B-221, Financial Chronicle,
25 Park
PL, New York 7, N/Y.
quarterly
dividend
PREFERRED
of
t'/2%
($1.50
DIVIDEND
a
share)
has
been
declared upon the Preferred Stock of The American Tobacco
Company,
of
Box
per
Common.
Stock, payable April 1» 1957 to stockholders
NO.
Kiplinger
accomplished
be
*
OAS
regular quarterly dividend of 35c
expansion,"
predicted,
TRANSPORTER
share
DIVIDEND
American
economic
LEADING
by the
TRADER
M.
has
_
economic
era
is
West
an
$71,8 billion budget. And he stated estimated population of 2,386,000.
incomes will double
Broadway,
DENVER, Colo.—John F. Mohar,
Co.*
which
resulting from
"The
-
.
Power
been announced.
Robert
$101,y
food,
Colo. Inv. Co. Adds
at
;
.
clothing and shelter."
(Special to The Financial Chronicle)
fi¬
to
„
same period, from approxi¬
mately $2,000 at present, to more
than $4,000 a year.
can
of
expenditures
and smaller share spent to
provide
the
age-old necessities of
of
sale
shares will
company
construction
located
in the
"The
the
sense
a
the
-
.
from
common
Kiplinger predicted that Virginia, Maryland, Virginia and
Congress would make no substan- Ohio, and covers about 29,000
pur-
nowpr
"Per capita
the
businessmen
and
r
_
bank-.
underwriting
The West Penn Electric Co. and
leaders, possessing a
of imagination, per-
integrity
,,
by
500,000. /
$185
to
real
in
well-trained
record
Loeb, Rhoades & Co. is
1958
and
m
be
of
Cash expendi-?
lures for construction
during 1957
It
of
on
share
Of its subsidiaries.
Washington, but enlight-
labor
used
its
principal agents
Prosperity will not
share,
of an.investment
offering.
nance
public responsibility."
week, and most of that increase
will
but
"The
New
combination
double
be
be
country,
citizens
will
Washington,
per
additional
one
Net.proceeds
cvery corporation office and union
growth
then
management.
additional
at a subscrip
become
City, members
New York Stock
Market
offices
was
With Burton, Dana
Peter
gregate is then related to the 1941-
He
&
Co., Walston &
Co., and Hannaford & Talbot.
give the aggregate current value
of investment in the 500
issues by
43
nation
in
ened,
20%
ANSELMO,
with
of stock
"The
income
C. L. Domer Opens
ard &
field
economic
of
only
population of 225 million and the
real standard of living of these
"The
rities
the
the
era
comparable period," the Washington journalist said.
sors'
on the scientific weight¬
ing formula pioneered by Stand¬
Poor's in
not
of
jhe additional
will require responsible decisions,
Kiplinger
a
free
purposes.
Calif.—Ches¬
conducting a secu¬
is based
Austin
country has ever had
bust
SAN
Calculation of the Standard 500
this
charted back to 1926 for reference
ter L. Domer is
•-/
will
bring
greatest
been
$4
change list.
adjusted
Thus, the
billion in the
aggregate value of the Stock Ex¬
•
next
years
the
increasing competition.
business
528,000
Ing group which is
national
skillful
basis
Carl M.
boom, which has
a potential long life, will not come
automatically,"
Kiplinger- ' said.
•'Prosperity will require wise and
local
averages.
Poor's
with
"The
20
long stressed the
arbitrary character of the popular
Exchange.
Realistic Yardstick
"Our
and
Auditorium,
said.
500
A
wages and
i t's
o
r
in
Feb. 11.
answer
ail
Moreover, fluctuations in prices
will be closely matched
by the
tickers
critics who have
with
,
measures
the
on
less comprehen¬
t
for
common,
manager
Profits will drop slightly for 1957
because of the pressure of rising
an
is
out-'
to subscribe
wjj] expjre at.3:30 p.m. (EST) on
14
1957
"*
March 14, 1957.
Kiplinger said,
rise,
■
.
Co.
its
Feb.- 26, 1957. Rights
billion
f.
*
This
of
for. each Iff ihares heid
r
.SI!-
,
1957.
ple
will be accompanied by a two or
three percent increase in prices.
EdselFord
is.
it
tion, digestion of data and calcu¬
by "the brain" in
e
is
But the whole process of recogni¬
onds.
D
Henry
adjust to the fact
that the
on
•
economy
before
in¬
formation, including bid and asked
quotations, special stock offerings,
"cash" sales, calls for blood donors
and
Lr?oUnurW"
.
Electric
holders
tjon priee 0f $24.50
Gross national
economy.
0
Penn
to
slandll?S common stock rights to
vpnr'ahPaH through
business service
better
1957 for
the
a
nation's
in
the
nnp
Washington
predicts
his
audience
The
of
his
organization's
perforated tape is automati¬
into a Datatron, which
has literally been taught to rec¬
ognize and record all regular-way
value
total
recorded
nnHntf
news
'
West
offering
1957
for
price
his
at
Common Shs. Offered
ahead through subscribe
1?=>7. Mr. K.plwger reported _that shares of
predictions for
process.
cally
t
Good
them
President's
West Penn Electric Co.
,
Vice-PresiVice-Presi-
Executive
the
information, said to be
of the
Executive
k]o!ineer
Kiplinger,
econ-
according to Austin
six-chan¬
based
90%
the
four-channel
to
dollar
Outlook
dent of the
involves
so-called
information
trillion
one
a
by 1977
headed
Kiplinger
Was hington
Agency, who
processes
This
of
toward
omy
is
States
After
chattering onto
tape.
conversion
indus¬
that
United
techni¬
special
applications.
year of research,
have
developed a
a
forated
with
Standard
this problem
has solved
stock ticker's
down
The
conjunction
code converter
index,
into
in
electronic
cians
index
broken
Poor's
&
nearly
an
stocks.
500
Working
Applications
Melpar, Inc., of Boston,
by
ration will introduce
Electronic
of
the
par¬
The
A
of
what-1
and
wage
conference.
bust."
economic
likelihood
no
direct
discussion
"heavy Federal spending to forestall
an
is
of
controls,* despite
billion
major depression, and contends both major
any
there
soever
Austin
Kiplinger after depicting the extent to which he estimates the
economy's growth in the next twenty years. Sees no major
of stock prices,
average
Economy Forecast
A better 1957 economy with GNP rise of 5% from $412
of 1956 to $430 billion this year also anticipated by
Hourly Stock Market Averages
New
Thursday, February 28, 1957
.
that
Trillion Dollar 1977
Standard & Poor's Launches New 500-Stock
..
record
payable in cash
at
the
close
on
April 1, 1957,
of business
March
to
8,
stockholders
1957. Checks
will be mailed.
February 26, 1957
Harry L. Hilyard, Treasurer
■
£
■
■
■
Volume
Number 5616
185
.
.
.
The Commercial and Financial Chronicle
ft
(1035)
DIVIDEND
Ji
1.
NOTICES
Case
DIVIDEND
(Incorporated)
The
rejular
Second
Cumulative
been
declared payable
of -record
March
12,
No
action
Preferred
Arr-il
1957.
taken
was
BROAD
25
Wis.,
February
28,
1957
quarterly -dividend of
$1.75
per
share cn
the 1%
Cumulative Preferred Stcck
has
been
declared
payable
April
1,
1957
to
holders
of
record
March
12,
1957.
A
dividend of 9.858 cents per share oh the
A
J,
SI REFT,
of
YORK
NEW
Directors
of
this
Scties
company
of
record
20,
Cumulative
pavable
the
at
1957.
.
Preferred
April
INTERNATIONAL SALT
Joh ns-Marrviile
COMPANY
on
of
Corporation
the
of
Vice
A.
DIVIDEND
A
KENNEDY
President
A:
dividend
of
DIVIDEND
171
NO.
ONE
shrevepdrt,
DOLLAR
share has been declared
Secretary.
capital stock of this
the
on
business
Allegheny Ludium Steel Corporation
Pittsburgh,
At
Tne
Penna.
of
the
Stockholders
the
close
1957.
has
5%
of
of
No.
stockholders
Common
8
on
McCASKEY,
Dixie
Cup Company,
of-
Stcck,
10,
record
No.
Series
97
the close of
share
per
Common Stock pay-
1957. The
(37}4tf)
of
Exec.
i.
j. osBORN
Vice Pres.
&
ROGER
record
the close
at
of
business
on
B. H. WlNHAM
February 27, 1957
HACKNEY, Treasurer
Sec'y.
on
March 8, 1957.
195^
,
HERVEY
share
per
payable April 1, 1957, to stockholders
holders of record
to
dividend of thirty-seven and
Cents
the Common Stock of the Corporation,
-
.
able March 15, 1957,
March 4,
a
one-half
this date
Directors hre
Board of
declared
the
on
I
will not be closed.
pany
1957
to
8,
1057.
March
Stock—Dividend
at
March 15,
T
stock transfer books of the Com¬
(quarterly)—-62l/ic
April
on
C
The
terly dividend of 50c
£1
ULUDU
'
Secretary
(quar¬
terly)—50c
peri share—payable
March
25, 1977 to stockholders of record March
1957
;
R> WECKERLEY,
H.
A.
14
share—payable
•-
S.
cf
Preferred
Convertible
per
at
rrcord
business
Directors
drinking cups and food con¬
declared the following dividends:
paper
A—Dividend
Corporation, payable
SO, 1957, to Commor
March
March
of
tainers,
the Common Stock
clared ou
Board of
makers
meeting of the Board of Directors of
Allegheny Ludium
Steel
Corporation held
today, February 21, -1557, a
dividend of fifty cents
($0.50)
per
share was de¬
a
-
holders of record
,
Dividend Notice
tors declared a quar¬
Company,
payable April 1, 1957, to stock-
louisiana
The Board of Direc¬
Secretary
DIXIE CUP COMPANY
GAS
COIPOIAM 0~lf~
to stockholders
business
on
March
JOHN
NEWMAN,
UNITED
1957.
1,
cmse
Stock
a
T.
DIVIDEND NOTICES
Y.
dividend.
L.
DIVIDEND NOTICES
„
Stcck
Common
4, N,
company
1951, dec.ared the regular, quarterly
of $1,375 per share on the outstanding
dividend
holders
to
Board
February 27,
has
Stock
1957
the
on
DIVIDEND NOTICES
CITY INVESTING COMPANY
Company
Racine,
.
NOTICES
Dated:
JR.
February
2^
1957.
Secretary
•"
.
-■
Secretary
Irving Trust
Company
ALC9
[t*
alco
Dividend
\
<
.
^
Common
,
♦
Export Lines, Inc. at
can
held
February 20, 1957, declared
5
dividend
of
j
S
share
the
on
fifty
($.50)
cents
stock
common
of
dollar seventy
one'
per
payable
dend
five cents
the
of
40
a
quarterly divi¬
cents
pth* share
on
capital stock of this Com¬
pany,
April
February 26. 1957
the
close
of business
share
the $3.50 cumulative
stock, and $1.00
$4.00
a
ferred
stock,
clared,
have
payable
ord
de¬
April
on
1,
March 5, 1957.
the close of business March
at
RALPH B.
PLAGER, Secretary
61
8, 1957.
PREFERENCE
AND
The first interim dividend
for
Stock
the
September 1957 of
the Ordi¬
(25c)
clared
sevenpence
fhe 29th March
on
Holders
this
228
on
of
March
on
this
outstanding
'/
A. R.
with
the
for
the
clear busi¬
five
examination
h_-
,
2Va%
|vaa«a«iiiM0i
dividend
of
CALIFORNIA-PACIFIC!
the 5% Preference Stock (less
Kingdom Income Tax) for the
UTILITIES COMPANY
ending 30th September next will
payable on the 29th March 1957.
year
also he
Provincial
National
five
clear
Bank
Limited,
to
business
have
recommended
shareholders of record March 1,
.
.
.
.
.
5% Convertible Preferred
to
President
April
payable
of
record
at
the
25
Cents
per
KELLOGG
not
5V2% Convertible Preferred
share payable March
Common
3Cth
September 1956 of eleven¬
pence for each 19/*
Ordinary Stock
(free of United Kingdom Income Tax).
To obtain this dividend (subject to
the same being sanctioned at the Annual
General Meeting to be.held on the 29th
March next) on or after the 31st May
next
D.
]. Ley,
i1
111..
tj i n i
j 11111 j 11 y „„ i wn,,, ,j,, i,,,,,,,,, u_j_,
BY
19th
ORDER
16 8th
STORES'
QUARTERLY
COMPANY
cash dividend.-
of Directors
21.
A. D. McCORMICK
s.ame
Treaty
may
XIll(l)
application
of JieW
Section
Internal
to
York
be entitled by
of the
between
States and the United
nnder
time
the
At
Board
Directors declared
who
of Article
States
declared
stock dividend:
London, S.W.I.
credit
February
Revenue
of
Both
United
Kingdom, to
991
the
Code
a
to
on
by
certificates
giving
a
the
declared
quarterly cash divi¬
able March 9, 1957, to stock-'
holders of record at the close
dividends
business
on
February
15,
of
Directors
hos
de¬
cents
per
11
stockholders of record Feb¬
to
share,
payable
March
After
taking
into
stock
split
2-for-l
1957,
the
following dividends
quarter
ending March
31, 19S7:
'
is
this
over
January,
4.08% CiMiefative Preferred
...
4.18% Cuewtefive Preferred
.
..
1,045
quarterly payment
4.30% Cumulative Preferred
.
..
1.875
increase
of
in 1956.
....
January biliings of the McGrawEdison
f
C. V. BOULTON,
Treasurer
cent
Company
over
account
years
are
and
a
were
year ago,
January
up
for
within the
The dollar
past
value of
January 29,1957
was
uary
42
oer
iast
cent
ac¬
year.
Edison
this
All dividends
are
both
Speed Queen, divisions
de's received in January
.35
.45
per
taking into
sales
New York 22, N. Y.
I ice President and Treas.
31
^ Thomas A. Edison, Inc.,
quired
590 Madison Avenue
$1.02
10
an
the
Dividend
Per Share
the
account
in
Class of
Stock
21.
ruary
for
quarterly dividend of 35
a
$1.40 Dividend Preference
1957.
5%
stockholders of record
March 4, 1957.
Board
clared
cents
of
before
March
stockholders
of
payable
30,
on or
1937 to
record
March
1, 19S7.
or-
year
F. Milton Ludlow
Secretary
higher than Jan¬
year.
,
Elgin,
particulars of rates of United Kingdom
Income Tax appropriate to ail the above
mentioned dividends. *.
~
,
a
The
dend of $1.00 per share, pay¬
of
John R. Park
Guaranty Trust Company
obtain
of
payable March 30, 1957
tax
United
can
Directors
Corporation has today
Stock dividend.
Double
the
the
quarterly divi¬
dend of 50c per share.
7, Millbank,
Taxation
The Board
on
regular
Secretary.
Stockholders
of
-
Westminster House,
virtue
1957
chines
The Board of Directors has de¬
NOTICE
clared the
Board
International Business Ma¬
BOARD
THE
The
154th Dividend
DIVIDENDS
QUARTERLY
DIVIDEND
DIVIDEND
February, 1957.
OF
Company
^
AMERICAN
days
the
rmrj
Public Sen ice Electric
and Cas
IBM's
(excluding Satur¬
day) before payment can be made.
DATED
STEFFLER.
CONSECUTIVE
deposit Coupon No. 229 with, the
Guaranty Trust Company of New York,
32 Lomba-d Street, London, E.C.3, five
-
H.
Secretary
must
business
the close of business
at
vice-pres. & treas.
February 18, 1957
holders of Ordinary Stock Warrants
clear
stock¬
to
The transfer books will
40<?
ended
a
Common
the
TRAILM0BILE
27J/2*
1957, of
May
on
Secretary SP Treasurer
February 15, 1957
STOCK
Februarv 26, 195".
final dividend on
the issued Ordinary Stock for the year
31st
STOCK
be closed.
27*
on
11,
A regular quarterly dividend of 37^£c
per
WALTER
COMMON
close
1957.
share has been declared
March 11, 1957.
of business
close
Vice President i2
25«?
.
controls
1957.
25^
5.40% Convertible Preferred
payment
to
of
the
at
R. (X GILBERT
the
the
the'"4Stockholders
20,
of business March
mr.
holders of record
of Jl.75 pershare,
1, 1957, to holders
quarter
26, 1957, to holders of record at the
Preferred
payable
1957
record
COMMON
regular quarterly* dividend for
current
Con¬
stockholders
March 1, 1957.
close of business March 8, 1957.
5%
March
,
Stock payable March 20, 1957
the
per cent
Preferred
stockholders of record
] 957, to
CHAMP CARRY
lowing rates per share:
days
made.
Directors
I
March 14,
on
the $25.00
on
value 5
Stock
regular quarterly dividend of
n>.sfty.eivty,-five cents (75^) pet-
paid
share has been de¬
vertible
of
Quarterly Cash Dividends
share will be
STOCK
quarterly
Cumulative
A
1957.
1957, have been declared at the fol¬
(excluding Saturday) before payment is
The.
91st Consecutive Year
7% SECOND PREFERRED STOCK
The
Quarterly dividends payable March 15
Savoy Court, Strand, London, W.C.2, for
examination
.March 8,
March 8,
Coupon No. 177 must be deposited with
the
338th Dividend and
,
on
United
regular quarterly dividend for
quarter of $1.12'2 per.,
current
ness
payment is made.,.
The
usual
half-yearly
PREFERRED STOCK, SERIES A
share, payable April
1, 1957, to
holders of record at the close of busi¬
before
(excluding Saturday)
days
ness
The
Lombard Street, London.
of New York, 32
E.C.3,
*4%%
SeC""0r>'-
February 25, 1957.
Trust Company
Guaranty
THE Boardthe Directors has this-day
of following dividends:
declared
BERGEN,
dividend, must deposit Coupon No.
per
clared
par
; 180 Madison Avenue, New York 16, N. Y.;
on
regular
dividend of $0.34375
Incorporated
AMERICA!
CORPORATION OF
1957, to stockholders
obtain
t6
CELANESE
common
March 6, 1957.
Stock,
a
Corporation; payable
29,
PREFERRED
cents
share has today been de¬
the
Graensburg, Pa.
Pullman
twenty-five
of record at the close of business
1957".
Bearer
of
per
stock
10/- of Ordinary Stock (free of United
Kingdom Income Tax.) will he payable
of
dividend
A
30th
for e&ch
on
89
STOCK
ending
year
controls company
DIVIDEND No.
WARRANTS TO BEARER
nary
kobektshaw- fulton
Coffionf/ion
NOTICE OF DIVIDENDS TO HOLDERS OF
ORDINARY
Secretary
Solvents
(Dmmercial
John G. Greenburgh
Treasurer.
Anderson,
February 26. 1957
February 20, 1957
Broadway
NewYork6, N. Y.
Carl M.
BRITISH-AMERICAN
rec'
the close of business
at
1957, to stockholders of record
Secretary
TOBACCO COMPANY LIMITED
per
1957, to stockholders of
pre¬
been
fifty'five
share was
payable March 27,
cents
declared
the
on
second
of
dividend
(55c)
C. l. nielsen,
?
A
on
preferred
share
convertible
February 21, 1957
.
stock,
common
'
March
1, 1957.
Secretary
*
m
$10, payable April 1,
par
1957, to stockholders of record
at
CARL A. SUNT)BERG
of iecord March 4, 1957.
5
declared
CORPORATION
share on
a
a
day
1. 1957 to holders
of record at the close of business on March
11, 1957. Transfer books will not be closed.
pay:
of 25<£
MERCK
the
151
TENNESSEE
Quarterly dividends
j
The Board of Directors has this
twenty
declared,
able March 14, 1957 to stockholders
February 21,1957
n. y.
-•
five cents (ISO per share on the
Common Stock of this Company have been
a
"
*
•
($1.75) per shard on the Preferred Stock and
ot
meeting
a
•
\
TfMNCSSIl CM04MTIM
RAIIWAY, N. J.
Street; New Yo^k
1'rkkkrreP Dividend No. 195
Dividends
The Board of Directors of Ameri-
-
PRODUCTS
Commo^Divioeno No.
| AMERICAN EXPORT LINES, INC.
One Wall
INCORPORATED
d
-1
j
■
.
30 Church srfcect. new York h,
Stock
'0
5
,
.
MERCK & CO. I»c.
Man McGraw, President
McGraw-Edison Company
ikteinational
IBM
Illinois
• usinesj
February 12,
machines
1957
corporation
(Formerly Mcu>raw
Electric CompanyJ
PVBLIC SERVICE
CROSSROADS
OF
THE
tkST
j
4C
The Commercial and Financial Chronicle
(1036)
,.
Thursday, February 28, 1957
.
for the
spending
BUSINESS BUZZ
fiscal
current
year,
for fiscal 1958.
and $71.8 billion
To make
accurately
1958
comparable with Mr. Truman's
mn.
Washingt
,\i'/
.
Capital
km tbi Nation'i
X l/W
of
XTX
O
highway spending is added.
This
brings
for
goest
this 85th Congress on
government economy was af¬
forded
by
the
awful outcry
which
arose
from the serried
all-important thing for the
Members of Congress was New-
basis
far a3 the Treasury
political ranks over the suspen¬
sion of the Lease-Purchase pro¬
Revenues
gram.
is
This
from get-
program
a
ting post offices and other Fed¬
eral building on the instalment
plan, mostly outside the budget.
These buildings are in all im¬
Federal structures were
same as
all
in
the
procured
respects
portant
except
history
the
for
the
proceedingsomebody
into
becoming
the
in
stage
appropriate
cajoled
is
an
This
".owner" enters into a "lease" of
foe building to the government
over a 25-year period for build¬
ings costing $2 million or more
"owner"
•
building.
the
of
apiece.
:
The
%
its
what
on
interest
"owner" take
on
^5-year
money
paid in instalments.
could not even
This "owner"
'
whether the
knobs should be glass or
feave
a
dtoor
in
ally
off
in
mother-in-law
'
1
in
the
his own
couldn't put
He
attic, and
room
spare
a
would not
he
'
park his private
allowed
to
automobile
in
toe
.
:
government
the
adjacent to
building, which is specified
parking
the
in
lot
or
for the exclusive use of the gov¬
the
At
.
25
of
end
years,
the
loan having been repaid in in¬
stalments
with
interestsr' the
"owner"
bound himself
title
having
in advance to do so, deeds
the
to
building
the
govern¬
his
to
loses
and
ment,
ghostly
existence.
This
appeal
beautiful
a
the Ad¬
and
Adminis¬
the
To
good, having to increase its own
borrowings and at 3% or better
on the shortest securities.
in
get
year,
and
interest
until
real
local
estate
is
repaid
loan
the
the government ac¬
in full and
|
quires formal title.
To
Congress, this
wonderful
gimmick.
have
dollar
25
to
up
of
amount
also is a
Congress
times the
buildings
started in any one year as
total
the
circumstances
the
Under
Administration
the
program, with a straight face
telling Congress this was done
suspended
because it would be inflationary
at this time for the government
Nothing
has
been
yet
withdrawing
about
said
buildings.
these
construct
(Note:
construction
the
to
program
sional ire only slightly less than
aroused
was
vice
by
the
fact,
would
cost
their
drew
against Israel.
Public
out
the
of
members
hearing
committee
it
since
be,
TV crooner instead shown
a
'
up.
believes,
precisely the atti¬
tude of Congress on economy.
The shock of realizing that the
underscores
President
passing the $70spending has
was
in
mark
billion
aroused
great deal of concern
Also it has stimu¬
a
the Hill.
lated
By
agreement
informal
an
the Administration agen¬
from the constituents.
however,
Congressmen,
are
when
4%. Hence with the
into
it cuts
specific multifarious bene¬
shortage of money generally and
fits,
was
held to
against
economy
Hie higher interest rate pattern,
and,
to
suckers
to find
been able
in
cooperate
and
sentiment
to
Finally,
and
with
another
etf
some
only
$765
revolution
revolution in
lop off $5 billion
that
the
had a "Re¬
President proposing'
enlarged funds
ing
*
a
Republicans
welfare
offices in
west
even.
budgets
this
than
per year on a
budget basis
bursements
of
tablishment
total budget dis¬
the
under
Federal
Mr.
hower will exceed by
lion
Eisen¬
$43.1 bil¬
budget disbursements
total
six
under
es¬
years
of Harry Tru¬
a
certain Democratic
who
man
formally
last
the
country how much more expen¬
sive Mr. Eisenhower is than was
figures for
1953, since
compare
favorably.
more
Six
fiscals
It
1948
So
just
Congressman
this reporter dug
budgets
showing
penditures by fiscal years 1948
through 1956, inclusive.
a
very
was
give
may
being
an
expenditures for those
years
aggregated $298,300
six
This
million.
349,710
about
for
years.
out
works
million
year
per
six
these
be
to
program
terms
of the final result
upon a
Congress
was no
was
con¬
insistence
for
43
member of the
a
Club
Traders
St.
of
Since
claims
Mr.
Eisenhower
dis¬
for
any
responsibility
pensive
Truman
the fact
Eisenhower
dent
days
for
of
Two With Plankinton
(Special to The Finance at Chronicle)
DENVER, Colo.—James K. Con¬
nolly and James N. Powell have
become connected with Walter
R.
Plankinton, 1637 South Broadway.
five
that
the
was
away
10
year,
Westheimer/one 'of
of
Westheimer
and
of
Walter L. Carey
Presi¬
and
,
Cincinnati, passed
Feb. 21 at the age of 95.
Company
despite
year,
months
F.
founders
Walter Lewis Carey, partner
in
DeCoppet & Doremus, New York
City, passed away Feb. 24 at the
age
of 56.
However, Mr. Eisenhower has
estimated
ward
(his
revision)
latest
$68.9
and
up¬
TRADING MARKETS
billion of
Campbell Co. Com.
Fashion Park
United States
cut
are
not
.National Co.
Riverside Cement
Carl Marks & Co Inc
where
it
tions,
the
SECURITIES
50 BROAD STREET
•
SPECIALISTS
well as appropria¬
Budget Bureau will
LERNER i CO.
NEW YORK 4. N. Y.
Investment
HANOVER 2-0050
for unless?
Congress cuts back on statutory
programs as
Sightmaster Corp,
this is
Even these modest
secure,
Envelope
Morgan Engineering
TEL:
top interest rate of 4%.
of
Botany Mills
FOREIGN
will
doesn't hurt.
as
Security
was
was
treasurer
associated
been
He
A. S.
peanuts.
cuts
and
Eugene F. Westheimer
Congress cuts, say, about
Congress
Congress Wants Buildings
had
he
years.
Eugene
Eisenhower's Five Years
drive
propriations asked as compared
with
a
previous year, but in
with
Bell,
fiscal
•
one-fourth of the increased ap¬
but
Stacy,
Mr. Niemoeller
long illness.
total
appearance
build¬
suspended.
So far
the
economy
offices
wider way, the whole
cerned, there
retrospectively, fig-
a
vice-president
of which
in office)
budget
This is
interesting exercise, be¬
even
with
Co.
Indian Head Mills
aggregate
actually
was
cause
Manthos &
through
1953 (five months plus
Eisenhower
this gives
only three "actual" fiscal years
for the "Republican" President.
this
formerly
were
Years
out past
"actual" ex¬
Truman.
George
M.
Manthos,
President;
George W. Moss, Treasurer. Both
Louis.
Truman's
part of fiscal 1953, the most ex¬
that
are
Stifel, Nicolaus and Company, In¬
corporated of St. Louis with which
happened
got his
figures all confused, and since
he did so, he will not be named.
Mr.
se¬
a
Officers
1953, where there
higher of the two
for
used the
Congress¬
told
business.
Feb. 24 at the age of 59 following
average
thought was
curities
which showed
expenditures for
completed fiscal year,
budget
From
under Hairy Truman.
In five years
the Bank of the South¬
John J. Niemoeller passed away
to
was
minimum of $18.5 billion
a
—
Manthos,
being formed with
take
done
this would make Mr. Eisenhow¬
er
Texas
is
$74.3
as
"actual"
"actual"
Eisenhower,
succeeding
In
appears
was
first
was
Compared
more
'
views.]
John J. Niemoeller
What
the
the Federal Government is cost¬
ing
own
Building to engage in
billion.
the
Under Dwight D.
for
year" at $74
Truman
billion,
except
Costs
disbursements
1953
"last
this
the
Eisenhower & Truman
mes¬
1953," meaning actual and final
and
programs.
budget
for fiscal 1955, put "actual
fiscal
for exist¬
programs
his
submitting
sage
Congress, but
the
Congres¬
80th
before
was
by
worked
was
Republican
Co.
Moss &
in
build¬
post
an
million,
(1)
It
of
project
one
Federal
course,
Federal
50
98
of
when
ings approved for
than his pre-*
' ' "
'
Formed io Houston
21, 1954, Dwight D. Eisenhower
,
a
Such
Thus on Jan.
budget to budget.
Knowland
Bill
appropriations.
sional
in¬
the S2 billion Senate
as
Leader
from
over
worry
ings.
this
extra-budgetary sham.
I
\
billion
-
HOUSTON,
from
the farmers,
national defense,
for
contracts
Hie GSA and Post Office depart¬
ment haven't
per-
J1 '•
Manthos, Moss Go.
to
for
like those for
cies, the maximum interest rate
annum
the "Chronicle's"
final
and
retrospectively
altered
Congress to cut
cause
suggests,
large volume of mail for
a
keenly aware that sentiment for
economy generally
is a pallid
force
compared
to
sentiment
among
-
Mr. Eisen¬
[This column is intended to re¬
flect the 'behind the scene" inter¬
past years, have a way of being
unprece¬
an
What started this
one
.
much
GOP
Spending
on
This development, it
appropriates only one-twentyfifth the principal cost in any
•-
flation to
as
take
national
man.
Bearing
economy,
year.
would
It
gallery of Senators
a
as
on
'V
make
pretation from the nation's Capital
and may or may not coincide With
to
supposed
were
firm
been
have
ciency appropriations.
dented
which
ures
defi¬
ad¬
parties
Senate
subcommittee
Works
Presi¬
the
both
of
leaders
the
flout
decision to
of
for
year
much
This has aroused the Congres¬
dent's
next
up
supposed
was
Wall Street tension!—All we've seen every
been peaks and dips—peaks and dips!"
new
Congress Angry
not
per
aftd
to,
1958
almost .$20
cost
are
they
shy at this
fiscal
-
would
esti¬
have
publican"
prevent inflation.)
had
to
way
minute
that
vacation
the
is
this
And
relieve my
come
any
one
a
by
paying
only 4% of
the principal cost of the struc¬
ture, plus the agreed rate of
can
Treasury
impressive as the gallery of
bobby soxers would have been
is
this
Federal
•
the
buildings
tration
taxes
5% interest rate for
pulled out the
a
do
In
Congress
ministration.
down
"—
and back sanctions
has
to
fiscal
difficult
would
Suspend Projects
both
:
for Federal buildings, it
to
see
how
this
money
it
the
year
amount
billion
$4
formance.v.
more
last fall.
or
school
ernment.
in
what
than
deeessor.
looking forward to paying
the new money it borrowed
Even if
to
no
against
at the very time it is usu¬
Lease-Purchase
is
current
actual
howers
fiscal
the
of
half
last
the
year,
about
say
'
brass.
thus forcing the
issues,
had
1
Eisenhower's
-
the
will
be
of
This
Treasury to pick up new money
year,
Thy bidding is
will
the
the title holder.
bill
he
off
tore
billionless
time
week
a
Mr.
for
could
to have to
million
$200
Taft
influence
he
actually
its last refunding. This
has led the Treasury
mil¬
spending direction. In all likeli¬
million
dish
in
raisfr by
and
hood,
to
expressly
,
him
mates
cash
are
arranged as if the
.^owner" were making a loan
instead of becoming nominally
Senator Bob
$2
$875
of
Eisenhower
Actually his record is
restraining
top of that, the Treasury
during the first half of the
lease
the
of
terms
of
ing to guess lower than expen¬
ditures actually will be.
out
budget
for underestimating
spending, since after the death
higher, and spending is run-'
On
It
average
a
notorious
ning above the budget estimates,
since it is the practice of the
President in his budget estimat¬
•
on
million, to $49,710
"breaks."
year
falling below budget esti¬
mates.
Savings bond cashings
are
six.
Nevertheless, these figures
give Mr.
Eisenhower all the
had
financing.
At
current
Mr.
than
years
last
annual
an
to
lion for Mr. Truman.
are
the
five
figure
for
$68,280
is
concerted, it is reported, there
was great objection to the pro¬
gram. The Treasury is in a spot.
for
gives
spending
Buildings In Our Bailiwick.
so
these
costs
$43.1 billion
or
Truman's
Mr.
also
The
But
for
more
.
five
aggregate
Eisenhower
of
years
$341,000 million,
WASHINGTON, D. C. — One
of the tell-tale signs of whither
spending
WAS in the budget, $1.8 billion
;c>
...
V fkf I
/§ m rl
/1IIU'
Belund-the-S«ne Interpretation.
highway
when
years,
^..It it ID
1
TELETYPE NY 1 971
10 Post Office
Securities
Square, Boston 9, Mass.
T elephone
HUbbard 2-1990
Teletype
BS 69
@FedFRASER