Full text of Commercial and Financial Chronicle : February 7, 1957, Vol. 185, No. 5610

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

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ESTABLISHED IS39

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Reg. U. S. Pat. Office

York

New

Number 5610

Volume 185

Price 40

7, N.'Y.; Thursday,-February 7,. 1957

Cents

a

Copy

*

EDITORIAL

Quarterly Investment CompanySurvey

Inflation, Spending, Taxes
As
The
work

in

party

And Some Reforms

President

is

earnest

over

expbcted by

now

make

to

a

it

so

is

"minority" to
said,

phosed the
winner

the

can

Republican

Not fearing
be

into

his

long

tenure

reach

that

nothing

All

end.

more

a

in

less than making

or

I

to mean

appears

Any appraisal,

for that matter, any com¬
ment upon the purely partisan aspects of these
matters, we gladly leave to others better qualified
for the task. There has been, however, a much
or

profound and much

hope

a

decade

or

definitions as free
I may be regarded

as

a

as

No

page

in

the

hower

well

midst of

quite remarkably, acquisitions
exceeded those of commons by
while in the September quarter

Eisen¬

sales—by over 12%.

and

as

Secretary Humphrey as
host of non-official persons

a

Cautious Managements

Among the managements particularly displaying cau¬
tion were the following who sold common stocks on

You
unless

do

growing

a

not

need

inflation

bump.

a

is

told

be

to

that

Herbert

Continued
address

the

balance:

While Secretary of Commerce, I witnessed
inflation movement. I protested vigorously

promotion by Federal activities. Then I had to live

at its

tion

Hoover

the end

stopped,

on

page

11

wealth

funds, Broad Street, Common¬

four Axe

Scudder,
Fund,
Fund, General Capital, National

Investment, Investors Mutual, the two
&

Stevens

Securities

Stock

Blue Ridge, Delaware

funds,

Clark

Eaton & Howard Stock

Series,

American,

Selected

by Mr. Hocver before the Third National Reorganiza¬
Washington, D. C., Feb. 4, 1957.

Continued

NOW IN REGISTRATION—Underwriters, dealers and investors

afforded

undertakings in

our

/,

w

Municipal

Securities

poten¬

£ %

mm

^1®

V'%U''--*'

'

STATE

and

HAnover 2-3700

CHEMICAL

0}
%s I'D

MUNICIPAL

FOR 1957"

ST., N.Y.

THE FIRST NATIONAL CITY BANK

15 BROAD
CABLE:

STREET, NEW YORK 5, N. Y.

•

Dl 4-1400

Bond Dept.

Teletype; NY 1-708

ESTABLISHED

1832

New York Stock Exchange

Stock

Orders

BROAD

STREET

gouthwedt COMPANY
DALLAS




•

PERTH AMBOY

Analysis

Executed On All

CANADIAN

At Regular Rates

DIRECT

WIRES TO

MONTREAL AND TORONTO

Goodbody & Co.
115 BROADWAY
NEW

YORK

our

upon request to
Unlisted Trading Dept.

(Room 707)

DEPARTMENT

VIEMBERS NEW YORK STOCK EXCHANGE

BRIDGEPORT

BONDS & STOCKS

Do>imion Securities
6 ep oration
40

Exchange Place, New York 5, N.Y.

1 NORTH LA SALLE ST.

CHICAGO

Corporation

Class A Common Stock

11

Canadian Exchanges

Exchange

NEW YORK 4, N. Y.

Knox

CANADIAN

SECURITIES

Teletype NY 1-2270

FIRST

BANK

34 offices from coast to coast

Markets Maintained

CANADIAN
Commission

25

Chase Manhattan

NEW YORK 5

Dealers, Banks and Brokers

t. l.WATSON SlCO.

American

THE

TELETYPE NY I-I2M

COBOPNHAM

Members

INSURANCE STOCKS

York Stock Exchange

120 BROADWAY,

To

AND

Members New

STOCK EXCHANGES

YORK Af.O AMERICAN

Net Active

BANK

Harris, Upham &

OF NEW YORK

Burnham and Company
MEMBERS NEW

REQUEST

LETTER

BANK
department

DEPARTMENT

BOND

ARE NOW AVAILABLE

view

ON
MONTHLY

Bonds and Notes

"MARKET OUTLOOK

BONDS

burnham

Public Housing Agency

COPIES OF OUR

CORN EXCHANGE

30 BROAD

26

State, Municipal

"Securities in Registration" Section, starting on page 40.

THE

bond

page

and

U. S. Government,

telephone:

the four

in corporate

complete picture of issues now registered with the SEC and

a

in

Stale and

on

Conference,

SECURITIES

tial

whole stepped up their

still > overbalanced liquidations, the
witnessed an actual excess of equity

December quarter

have called full warning of it.-

is

Moreover,

purchases

equity

securities

DEALERS

as a

large outpayments for year-end capital gain and ordinary
income dividends. And whereas in the already "defensive'*

over-11%.'

inflation 1j

an

President

Both

movement.

32

are

managements

previous defensive policies. Of the 72 companies covered
in our analysis, a majority again further increased their
relative cash position—this in the face of seasonally

in the December quarter,

here needs to be told that

one

are

we

*An

on

During the last quarter of the outgoing year invest¬
ment company

September quarter purchases of common stocks still had
exceeded those of defensive senior securities (by 87%),

con¬

paternalistic

Continued

and 28.]

of the defensives actually

two earlier. What had

been regarded

public utili¬

| Tables showing 4th quarter portfolio changes and funds*

The Inflation Movement

people of this country to adopt and to
boast of lines of thought and general economic
and social doctrines of which they would have
years

as many

comparative cash positions appear on pages 27

structive conservative.

file of the

earlier

well

tions, chemicals, electronics, foods, metals, motors and
rubbers. Switch to Western Hemisphere oils continues.

diction¬
spending, I

ary

more

socialistic ideas from abroad to lead the rank and

been ashamed

as

ties, attract buying; while mixed action prevails in avia¬

"liberalism"

of

connotation

modern

formation in

in

TV and steel stocks

paper,

having taken on one of its

significant trans¬
popular thought about almost every¬
thing since the fateful days of 1933, and all this
party maneuvering is but a reflection of it. In
this no man with the good of his country at heart
can
fail to be interested. The major work of
President Roosevelt was that of seizing upon, the
unrest of his time and the growing impact of

more

finance companies, department stores and mail
liquidation; bank, coal, drug, natural gas,

orders meet

meetings is to stimulate interest
in reducing waste, increasing efficiency, decreasing ex¬
penses and taxes in the government,, and thereby also
contributing
to
curbing
inflation.
I hope you will be patient with my
approach to these questions.
The

organization out of the Republican party,
r

expenditures through reforms
in budget and accounting, defense, and civil service,
among others, the distinguished head of the Commission
On Organization of the Executive Branch praises the
progress
made despite pressure groups and advises
American people to resign from those groups designed
to increase public outlays.
The purpose of these

New Deal

a

ings,

filled opportunities to save

number of

this often

governmental expenditures exceeded 1956
over $103 billion and, as a result, con¬
higher taxes and inflation. In scoring unful¬

tributes to

office. The
things to
say that would lead one naturally to suppose that
he would much like to see his party changed in
some such
way—whether or not he intends to set
himself consciously and vigorously to work to
during

President himself has had

total

budget figures by

consistent

a

serious depression if inflation's march can^

a

stopped, former President Hoover reports that esti¬

mated

metamor¬

Democratic party

of liquidity, and continuing shift toward
preferreds with their improved yields, accom¬
panied by more selling than buying of common stocks,
is revealed by analysis of investment company portfolio
policies during year-end quarter. Managements stress
increased need for caution and selectivity. Rails, build¬

bonds and

even,

Roosevelt

Maintenance

Former President of the United States

convert his party

"majority" party

a

Franklin

as

Funds Increasingly Cautions

By HONORABLE HERBERT HOOVER*

to his liking. In this way, it is

more

apparently believed that he
from

to go to

many

Teletype NY 1-702-3

WHitehall 4-8161

IRA HAUPT & CO.
Members

York Stock Exchange
Principal Exchanges

New

and other

111 Broadway,
WOrth 4-6000

N. Y. 6

Teletype NY 1-3S60

(666)

The Commercial and Financial
Chronicle
»

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•

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>

w

For Banks, Brokers, Dealers

The

only

Security I Like Best

This

Try "HANSEATIC"

security,

(The articles contained in this forum

Whenever You I\eed:

they

•re

1.

Broad Contacts

Full

H.

•

Dependability

York

City

»*

Service

these

uncertain

Telegraph

New York Hanseatic

times.

American

Naturally

BOSTON

Private

Wires

to

SAN

Principal

Specialists in

g

sidered
tific

I

SCRIP

&

Since 1917

If

H.

Aibert

Members
New

York

American
120

as

pective stock-split and

a

increase

tional

g

All
new
stock
offerings
the last few years have
easily uigcsicu diiucax 111115a
digested and earnings
on
the
increased
capital
have
shown a steady sound rise.
The
present
price
(based
upon
13
times earnings) is very reasonable.
1.
(2) Interest rates may have seen
their high point and any cheapen-

Furniture

Basiett Furniture Industries

(1)

ing

.

tion

STRAOER and COMPANY, Inc.
Lynchburg, Va.

the

is

considerably

$9.00

a

sold.

Dividend

share

if

exercise

their
is

before:

few

debts

Trading Markets

than

50%;

to

today

ever

funded

ago

little

a

more

have

we

New

York

iRosemarie Reid

tries

for the

to

New

fight

York

any

Tele-

phone Company other states take
a
more enlightened view.
In any
case, the Court of Appeals of the

Sutton

State of New

Products

the
tne

taken

&reene«MiCoTTvpat\ij

York

into consideration
fnr
toi

rates
lates

nhnne
pnone

$1,750,000,000

1930

he
De

fixing

in

rnmnanies

The

companies

to

ine

reproduce

New Vnrk- nlant
New Yoik plant.

has

mission

that

contended it would cost

company

Tel. HAnover 2-4850

has held

msU1must
costs
must

vpnrorlnctinn
leproauction

The

F?ate
1 he Rate

allowed

a

its

fnm
Com-

return

on

only $1,400,000,000.
American
those

❖

the

-

t

Texo Oil

^

Federal Uranium

^

Acoustica Associates

people

safe

lu
their

Mexican Gulf
Sulphur

Philippine Oil Development

side
+

first

market
market

who

like

and

fnr
lor

are

high
mgn

be

may again

agement

CAPPER & CO.
1

Exchange PL, Jersey City, H. J.

HEnderson 2-8570—N.Y.:
Dlgby 9-3424

by

capable

rate

the

nouncements)
manner.

reasons

man-

(as

are

an-

intelligent

some

of

ing AMERICAN TELEPHONE for
.

Teletype JCY




.

119

income

,

the

on

air

x

..

purposes with expectations

of favorable market
developments,

Call

to

50

mil-

During

Yamaichi
Securities Co., Ltd.
Established
Home

Office Tokyo

Brokers

111

Firm
..

important

in the

$292

asset

should

year

the

is

was

RCA

.

hi«hlv

NBC

unsurpassed

.

troubled

a

set

'

'

-

technical research

•

eiecllomcs equipment

r.

lte™s (b> consumer; products,
ouiring

•

field

served

earnings,

one

to

_

'
and

the

tPiPviojnn

cPt«

The

ine

.Wnca,rrnug
should

reap
National

th/largest

a

WISENER

division

of

th-

73 King St. West —Toronto, Canada
TRADING DEPT. EMpire 3-8204

LAMB0RN & CO., Inc.
WALL
NEW

profitable

the

S2 60
on

normal

Th7

,

•

SUGAR

WithRaw

—

Refined

Liquid

—

Exports—Imports—Futures

Dlgby 4-2727

nearer

kOV)r INOf

earnings

the

$l.o0

at the

cur-

relationships

,

'Saving^

a

S10Q

*

.

convertible
;

.

vertit>le into

•

19oo

in

common

are con-

stork

at

oO
° common st ck at oi
—well above the present market

mm

com-

ic

The company's strong basic

J.osition

in all phases

oi tele\lion

«nd electronics augurs well for
The cuireut Yeai
he .^-u^uFe'
,u u?.e'
^ e cuirent year

rewards.

Over-the-Counter

Quotation Services

,

should witness
Ovev

^ ?rowTn oi
ine growth"o7

chnw

some

the

earnings

longer

re-

term,

for 43 Years

impoitant segments

electronics, NBC telecasting
coald Proytde revenues to produce

—

largest factor in the

"tubes" field, doing a large volthe U S tube business
and the military

This represents
good profit portion of the over-

National Quotation Bureau

®'?aft»r allowiM'fn^fnll"^1'
SVerSon o£ b^nds § 01
^

for r^Dlacernout a*1^ for industry
a

"

•

past

debentures issued

vol

the years

Is

^

^

4.6%

t

■

SSiSS-tS
FCA

5, N. Y.

? 1
man tne Dow
Jone,s Industrial Averages,

he baij

tn

STREET

YORK

and-

company's

rmtn,p

COMPANY

and

LIMITED

the
stock' is
priced
on
a
moderately better, ba^is—on earn.
*
d dividends
than the Dow

^

Broadcasting
apparitlv hpd rerorH
ently had record earning* in i
earnings in 1956.

This

in

These measurements

ume of any rompanv in black and
hit

still

^

yields

with

nai5 ine laisest sales vol

wmte television sets,

.

*_
^
lnpd.uiemenis^at tne cuirent P«ce. are again about in line

nri-

manv

sales

=

.

djvjdenc{

re-

facets can
man^ iaceis can contribute
contiiDuie
future sales and profits:
largest

.

aTqo
ouuook ana patent
At 32*2, t^e stock is selhng

sults-

The company has broadened its
operating and earnings base to
where

(•

however,

charges incurred in-pro-,
"color," 1956 earnings
have^ been about equal to

Ponderables

ana

^

»

term television outlook and
oatent

^mysement xieia sei\ea pn
«ar 7
wholly owned National

E^adcasting Co.

-

Company, Limited

appear sufficiently deflated
to already largely reflect the im-

merchandising ability;

amusement

KC)

—

32V2

be

and

,

of

TRANSMISSION

manufac-

telecasting operations.

would

vast enterprise with
with
in three basic areas:

,

Trading Markets

All the Securities

99

;

the

m'oting

J
reseaicn ana
production of Virtually all kinds
f

COrtlandt7-5880

is

or-

;

television

RCA

of

1

-

diversification and

Pnfernr^e

a

.

Bankers

derived considerable benefit from

substantial."
..

■

Branches

70

million

distributing

which

industry.

Last

.

(a) attract
(b) stimulate

TV

1897

—

Investment

Maintained in

..

contributing
a
modest
profit. "1955 results despite-the generally
Thereafter, Mr. Sarnoff predicts— Poor television year.
<<profits from operations in all
F™m a high of 55, the shares at

lts operations

&

Broadway, N.Y.6

the

about

country-wide

.ganization

out

color

•

WESTC0AST

av5.
to $1,250
+

about $55 million in
Electronics operations

An

its

By the second half of 1957, the
expects color to he

of

write

$2C0 million in the postwar
p'srioi.

management

branches

information

or

nucleonics,

integrated manufacturing facilities." RCA's manufacturing facilities
alone
have
been
expanded

to

and

sponsors;

current

in

benefit from the
company's highly

color set sales.

the

again suggest-

equivalent

totalled

1956).

Without this, 1956

*hrmid

radio

For

are

television

fourfold.

or

turers.

new

appear to be stirring due
improved Japanese econon^

now

to

enhance

postwar period plant expenditures

una nagement expects-.-to
double the number of color oro-

.

latest

we are

is

Don,

.

and

grams

remaining at practically
stationary levels for three years

field

outlays
the largest

?^nc(^?^47'.?1a.les
fFom $312 million

campaigns, RCA esti-

is

STOCKS

activities,

could

f

for

are

and

.

offices

after

.

.

branch

our

JAPANESE

10
years
before,
half of volume is

about

connected with

.

to

of

(estimated

the

publicity
.

in a very

These

why

par

speculative

limited. The

very

its

rar

extras
exnas

some
some

the

.

shown

this
this

The

possibilities

are

is

handling

on

the offing. Teeh-

if

even

incentives

be

nerhans

favorable,

and
ana

in

growth

existing

all

to

make

piospects
is
is

for

+

issue

aualitv
quaint

is

™a. ,5
investment in life.
•

nrnsnerts

ticular

nical

Brown Allen Chemical

Telephone

Today,

year bei°re

wires

.

feasible, .only

color

21-inch color receivers. The goal
for 1957 is set at 250,000 color sets
.

one

entire

•"

have

only

34%.

increase

ESTABLISHED

years

(4) E ven. if-Governor Harriman
of

Burndy Corp.

A.

than

sounder

amounted

about

Botany Mills

A

promo-

in

Mr. Sarnoff recently stated that
RCA in 1956 sold 102,000 of its

also

rights. The capital

structure

and

incurred

earnings
would
have
approximated the $3.16 shown in 1955.

are

is

keenly
(3)

a

and.

sion activities last year resulted in

than

rights

income

in

Ufnro
Kpfnrp

vp.r
p
r

It is

these

years,

NY 1-1557

indus¬

,

earnings declined to $2.60
share in 1956 compared with
,,

Direct

had

•

-

Birmingham, Ala.
Mobile, Ala.

^ may be noted that 80% of
total 1955 sales stemmed from
Pr?ducts and services either nonexistent, or not commercially

tele-

artJ.°rss (after taxes) of; about $6,-

distribu-

higher

the

etc-

material

-

Exchange
Exchange

pro¬

and

r€alm« of electronics,

by

mat<~d that in launching this new
product and service, color televi-

the

higher for those stockholders who

TWX LY 77

Food

cash

mar-

on

the

among

promotional

which gives
certain
benefits

actual

tubes

development

~

largest

research

Counting the extra cost of training
personnel,
advertising
and

course

stockholder

and

market

900,000. This
again be cents a share.

"Telephone."
New rights will

that

so

in

and

expenses

CMf! tho
^ ifi |u

would

immediately

of

(3)
the

rate

money

itself

offered in due

Life Insurance Co. of Va.

LD 39

the

of

reflect

labor

billion

Net
per

ed&ny

the

traditionally
placed
f?reaf emphasis upon scientific researcb. The company has a large
staff of; top scientists and engineers exploring vast unchartered

television work.

during

price

Commonwealth Natural Gas

we

sets

heavy

stock for the following reasons:

rate,

were

reduced prices

competitive

like the

an

in the dividend

§|

American

v.

vision

pros-

=

Trading Interest In

31 Wall St., N. Y,

little

very

talk

Exchange

l
been

Vita

pay

Exchange

P

$VA

Profit

Stock

TEL. REctor 2-7815

about

of

-

Stock

Stock

HAnover 2-0700

potentialities materially.

ment

York

New Orleans, La. -

color

country and cover a particu¬
larly wide range. The manage¬

consecutive

affected

such

both

the

tenth

however,

we

American

to

RCA's

August Huber

gins,

to

of

one

probably

6% above 1955.

if

from

of commercial

profit

%'4fSi

the

(2)

is

future

over

.

fields

higher

New

19 lltctor St., New York I, N. Y.

future

Firmly astride
,of
electronics,

-

(i)

—

Member*

the military, with a
present backlog of about $325 mil¬
lion. New electronic and
scientific
products are under
development.

\

vvere

costs,

the

materiel

,

leader

Sales

in

RflllCP £ P.A

^■ tllltll,llVUOt IX VU
v-

|- the major suppliers of electronics

growth

for

_

NTCIMrP

should expand
It will also bene-

trial electronics items.

de¬

year.

Stock

BROADWAY, NEW YORK S

O.

1956

A

'

and

the years.

ducers

simple

attention

fit

electronics, RCA registered a
high in gross revenues in

new

strictly regulated the stock of
the company would sell considerably higher.

|
||

greatest scienin the world.

2)

Members

business

RCA

that the telephone business

Even

|fcpONNEIL&fO.

of the

(Page
v^ase

^uy'

;

Bought—Sold—Quoted

America—

receiving tubes and picture tubes,-

price

the

of

New York Citv

,

over

of television
and

is

m

all

a

Cur-

enterprise.

in

Deuble

would not be for the

reason

gas

in

have
a

,

The

organizations

it

been

indications for
the

con-

one

have

ap¬

relative

term

Laboratories

Louisiana Securities

===::=:::==^^

in

basically
strong longer

Bell

be

55%

the

electronics.

can

of

Corporation

'

earnings,
future profits
prospects, and

developments,
last not least,

Cities

to

.Co

'

to

inter-

The

RIGHTS

stock

area

esting and
profitable new

FRANCISCO

.

selling
32V2,

pears

active

many

CHICAGO

•
•

the

a

Alabama &

.

Selections

August Huber, Manager of
'Stock Dept., Spencer Trask &

'

.

price

America

rently

interest in

Teletype NY 1-40

PHILADELPHIA

of

entered

an

high

a

flated

has

.

around

not¬

not

,

rather persistent downtrend.

sleeper but

Exchange

Radio

..

1955, the shares of Radio Corpora-

company

is

1920

Broadway, New York 5

WOrth 4-2300

IIUI1ER-

Corporation of America

this

Member

Stock

x.

withstanding
the fact that

Corporation
120

g,

tion

active

to

-

From

this stock cannot be recommended
traders

■

Radio

American Telephone and Telegraph is just the right stock for

#

Established

AUGUST

.

Spencer Tra»k & Co., New York Citv

New

\-

Week's

dent,- Yorkville Exchange Co.,.
Inc., New York City. (Page 2)

Members of N. A. S. D.

Trading Facilities

Associate

sell

to

,,

'

American Telephone &
Telegraph
Co.
Albert H.
Deuble, Presi¬

be, nor
the securities discussed.)
to

Manager Stoek Department

American Telephone and

4.

offer

as an

DEUBLE

Thursday, February 7, 1957

.

,1

Participants and

Their

,

.

tf

—

intended

not

are

President, Yorkville Exchange Co.. Inc.

Long Experience

3.

5.

be regarded,

to

ALBERT

2.

Forum

A continuous forum in
which, each week, a different group of experts V
in the investment and
advisory field from all sections of the country
participate and give their reasons for favoring a particular

.

t

•

-

-

A
'

this -stage of
-

Incorporated
Established 1913

•

an uncertain
Continued on pacfe 8

46 Front Street
^

CHICAGO

NewYork4, N.Y.
BAN

PRANCISOO

Volume

Number

185

5610

.

.

The Commercial and

.

Financial Chronicle

(667)

The Jekyll and Hyde of Insurance

INDEX
Articles and News

Managing Partner, Shelby Cullom Davis & Co., New York City

Paradoxically,

according

to

Shdby

Cullom

Davis

&

The

the best buys in
Referring to the Dr. Jekyll and Mr. Hyde

the last ten

^

.

dictable underwriting side of insurance* Mr. Davis believes

Jekyll and

—Shelby

.

years."
swings between the virtuous fundamental permanent values of
investment income and net worth, and the mischevious,
unpre„

and

Some

? •

A

'

of Insurance

Davis

Businessman's

Views

Stocks

CAUGHT
3

.

of

Henry Ford II

-

Today's World Challenge

:

instead

-

A.

Smith—'

keeping

on

of

obsolete

bringing them

bonds,
Ob¬

us!

to

viously mad!

4

-

Growth Prospects in Electronics—Alan

*.'■»

we

Hyde

Cullom

MAD BONDER

iCover

Insisted

j

-

^

AND COMPANY

Reforms

,

partner, fire and casualty record 1956 losses creates present

opportunity making "insurance stocks

Page

wmmmm

Inflation, Spending, Taxes
—Herbert Hoover

Co:

-

ilCHTtnSTtm

B. S.

SHELBY CULLOM DAVIS*

By

5

*

i

in the

early stages of upward pendulum swing in the
underwriting margin of profit and that gross undervaluation

are

•

-

now

of the individual

Outlook for Construction—Miles
L.

:

v

group as

a

Facing the Facts

'

-

Make Haste

The Food

believed:

(1)

other

That

fire and

casu-

'

alty stocks to¬
day

cal

swings.

Oddly

market

for

surance

stocks takes its

at any

entirely

are

more

time in

fire

from

and

the

cue

Industry's Outlook—S. M. Kennedy

mercurial

r

Mr-

GULF COAST

12

—_——

STANROCK
URANIUM

13

UNITED WESTERN

14
of

MINERALS

Confidence
15

._

-

SAN JUAN RACEWAY

European Common Market and World Economic
Fundamentals
—Hermann J. Abs.,..

C

;

.

J

.

•

V

-

/

^

YORK

4-6551

LEASEHOLDS

Critical Year of 1957?

the:

almost

NEW

WHitehall

12

Economic Prosperity's Tripod and
Importance
—Arthur O. Dietz

casualty in-,

STREET,

10

W. Babson

—

enough,

attractive than

K. Thurlow

Utilization—Roger

Outlook for Housing—Owen R.
Cheatham

violent ups and downs and cycli¬

WALL

Telephone:

Wrong—Ira U. Cobleigh——9

Will Business Turn Down in
the
—Malcolm P. McNair

story,
like y volatile
Mr.
Underwriting is subject to:

Hyde.

Obsolete Securities
Dept.

6

Communism-r—David Sarnoff—0

Slowly—Bradbury

v

I: am going first to present my on a beach.
These represent the
conclusions, in J.ie manner of the fundamental permanent values of *
oldtime
pugilistic one-two, and insurance companies. But the in¬
then
give
the
reasons
why I surance side of the house is an¬

„

of World

35 Billion Barrels Can't Be

-

Greater Brain

characteristics.

,

.

Colean_L^

99

whole is so deep today that a
reasonable expectation is for an advance of about 50%, cor-.
reeling the wide divergence between general market and insurance stocks. Author specifies five securities for their attractive

*

Common

&

V.'T.C.'s

'
.

L

last

the

10

years.

That

(2)

they

will,

ac-

cording t
reasonable

o

next
in

upturn

underwrit¬

ing earnings, probably by 1958-59.
At the outset, may I, not unlike
the native Californian about his
state, say a few words about the
insurance business. It is a peculiar
business, unlike almost any other.
Its paid-in capital and surplus are
not
invested
in
factories
or
in

and structures, "as in

ways

rail¬

a

road, but in high grade securities.
It is these high grade
securities,
U.

S.

Government

bonds,

preferred

bonds,
and

*

stocks, .which- form
work, the basis for
the

of

insurance

other

common

the

frame¬

the

conduct

business.

These

high grade securities immediately
begin to throw off income on their
own, which! increases each year
in

escalator-like

does

their net

fashion

worth

or

ing values.

Thus,

double

a

Jekyll

insurance

an

aspect,

Mr.

and

recall

these

two

has

of

Dr.

will

You

gentlemen
Dr.

as

liquidat¬
r •,

kind

a

the.famous novel.

good

just

company

Hyde.

from

Jekyll

was

doing good deeds all
— healing
the sick,
beiDg a good neighbor, a loving
father and husband, a good citi¬
zen
in the community.
But, by
a

the

man,

day

the underwriting side of
the house, rather than from the
'.'everyday in every way I'm get¬
ting better and better" investment,

long

Dollar

insurance stocks
the worst

was

after

drunk,

women,

a

generally!
Dr.

Jekyll

the'investment

net

corresponds

side

of

the investment

ness,.

which

worth

keep

rising

busi¬

the

income

and

after

year

to

year

incoming

tides

Mr.

like

the

address

38th

sponsored
American

City,

by

before

Mid-Winter

by

the

Davis

Trust

Trust

Conference

Division

of

the

—„

in dollar losses

Purchasing
Orders

.

Agents'

•

•

writing experience due to the vio¬
lence

of

the

Eastern

hurricanes

Seaboard

in

As

1955, losses unexpectedly
There

be

to

appears

arose

no

example, fire losses

in

Business




1

:
i

22

Teletype NY 1-4643

Exchange

Jersey City

•

Place
HE 4-8504

Botany Mills

It

(Editorial)-

Man's

Stocks-—V—--

Bookshelf

—

--

Dealer-Broker Investment Recommendations

mium

dollar,

12%

Since loss costs in

to

50%

rise

a

means

the

of

in

pre¬

loss costs

diminution

a

of

profit margin by 6%.

Since most
companies wouid be happy to

lire
earn

6%

a

margin of underwrit¬

profit,

alone

this, rise

has

fire

in

loss

sufficient

been

costs

to

put

companies in the red.

Almost

the

story

same

lines.

insurance in the
Fatality

From Washington Ahead of the

:

News—Carlisle Bargeron—_

*

-

.

•

,

*'

Mutual Funds

;

—

News About Banks and Bankers-—-

—

r-

r

—

Securities Now in Registration

Prospective

Security

Securities Salesman's

i

Offerings--—!

published monthly by the Na-.
Safety Council, Following
reasonably good experience in

The Market... and

'J

auto

18%

fatalities

early in

last

ties, of

1956,

February.

course,

are

began
as

much

Auto

31

Continued

on

page

y

Stock

Security I Like Best

2

The

State of Trade and

4

of

TELETYPE

Chicago

Schenectady

•

•

You

Glens Fall*

Y.

San Juan Racing

48

24

Basic Atomic

T M T Trailer

1956.

Twice

Weekly

Drapers'

1

land,

COMMERCIAL

FINANCIAL

Copyright

CHRONICLE

Reg. U. S. Patent Office

25

P.

Park

DANA

Place,

COMPANY,
New

2-9570

York
to

Gardens,

c/o Edwards

D.

WILLIAM

Reentered

7,

N.

by WiMiam
Company

1957

as

Subscription

President

news,

Chicago

3,

111.

195

(Telephone

Febru¬

La

STate

Salle

St.,

2-0613);

Rates

United

States,

U.

Bank

$40.00

and

per year.

rate

of

per

Record

of

the

made

In

New

—

funds.

BROADWAY, NEW YORK 6

year.

WHitehall

Monthly,

fluctuations

remittances

York

39

Teletype NY

tor

eign subscriptions and advertisements
be

In

year;

(Foreign postage extra.)

account

exchange,

INCORPORATED

of

Publications

Quotation

W¥ V. FRANKEL & CO

S.

Members

of
Canada,
$63.00
per
Countries, $67.00 per year.

Note—On

South

in

Other

the

Offices-

Dana

Dominion

etc.).

Worcester
Other

B.

matter

Territories
and
Pan-American Union, $60.00
Other

1957

Thursday (general news and ad¬
issue) and every Monday (com¬
plete statistical issue — market quotation
records, corporation news, bank: clearings,

city

second-class

Possessions,

Every

and

Baruch Oil

Eng¬

Y.

vertising

state

C.

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

9576

SEIBERT,

E.

ary

Publishers

SEIBERT, Editor & Publisher
DANA

London,
Smith.

&

and

Subscriptions

1-5

Gulf Coast Leaseholds

°See "Chronicle's"

Thursday, Feb. 7,

N.

Industry

Survey, starting on cover page, of financial
operations of Investment Companies during the final quarter cf

HERBERT

Exchange

Federal Uranium

16

:

The

Washington and

Los Angeles

as

fatali¬

measure

a

to

to

Radorock Resources

44

Corner

tional

1955,

*

40

,

You—By Wallace Streete

Chicago

36

„—

*

35

:

—

inc.

Exchange PI., N.Y.

Direct Wires

Philadelphia

47

Securities

.40

Teletype NY 1-1825 & 1-4844

5

22

.

Our Reporter's Report

Utility

HA 2-0270

21

:

Our Reporter on Governments

Railroad Securities

&mackie,

*

—

Observations—A. Wilfred May_„__

Public

Singer, Bean

16
39

.1

.

au¬

figures

are

a

Uranium Mines Co.

17

.

Indications of Current Business
Activity—j_-

be

can

worsening loss experience of
tomobile

Pacific

8

Einzig: "Labor Troubles in Britain"

year.

\

amount

46
48

rates at the same time were trend¬

fire

Canadian Superior Oil

22

—

.—

only

were

1955: and for the year as a whole,;
fire losses were 12% ahead. Fire

ing downward.

Basic Atomic

-Cover

Coming Events in the Investment Field—

Yet, in January, 19o6; lire losses'
jumped 28% ahead of January,'

of

37

—.

—.

ex-!

one

1V2% ahead of the previous

See

Bank and Insurance

planation r. for
this
unexpected
change in the trend loss. In 1955,
for

We

the

on

1954 "and

fire and automobile lines last year;

•

•

?n

"

.

Regular Features

.

_

ST., MEW YORK 4, N. Y.

Boston

~

Broadway, New York 4

DIgby 4-4970

The

answer
is very simpleAfter several years of poor under¬

Members New York

Nashville

~

■

42

New

Export-Import Bank Operations in Sharp Rise

margin of underwriting
Why should this have been

profit.
so?

Spencer Trask & Co*
Albany

in

Exch.

Wireq to Salt Lal^e City & Denver

REctor

IIAnover 24300

Upturn

Puerto Rico Expands U. S.
Operations Under Rafael Durand—

WILLIAM

TELEPHONE

Moderate

__

PREFERRED STOCKS

BROAD

Notes

negative

.

25

Survey

^

Published

specialized in

Salt Lake City Stock
Spokane Stock Exchange

Short-Lived
19

I

The

have

Forecasts

Guaranty Trust Co. "Survey" Cites Essentiality of
Depletion
Allowance as Key to Adequate
Supply of Domestic Oil—— 31

Association, New York
1957.

For many years we

J.F.Reilly&Co.,Inc.

Cover

u

—

Readjustments

•

The year 1956

Bankers

Feb. 5,

,

Although final figures are not yet
complete, it appears that the in¬
dustry as a whole operated at a

mount
♦An

one

told for casualty

So it is with the insurance busi¬
ness.

#

Marcus Nadlcr-Views Year Ahead
and

fire
and casualty
insurance
companies have ever experienced.'

no-good

a

*

Increasingly Cautious ("Chronicle's" Survey of
Operaof Investment
Companies in the Final Quarter of

1956)

!

Buys

the

the

chaser

Funds

STANCAN URANIUM

Growing World

a

20

»!:

the best buys

are

in the last 10 years.

the'

a

Best

in

Members

ing

menace:

Losses Creates

Private

Enterprise
—Robert L. Garner-—.

,! tions

Herein, of course, lies the*op-,
portunity today—and that is wny

night,
his
character
underwent
change. As Ms-. Hyde, he became
town

V

of

ex¬

pectations, ap¬
preciate
50%
during the
Shelby Callom Davis

Risks

Hyde,

side of Dr. Jekyll. '

3

Direct

PHILADELPHIA

3-3960

1-4040
Wires

& 4041
to

DENVER

In

for¬
must

SALT LAKE G1TY

4

The Commercial and Financial Chronicle

(668)
i

*

gently

demand

v/d 'dan'fib'
entail

Today's World Challenge

action—problems

tremendous

possibil¬

we

I
i

r

cannot afford to be

ment,

like

would

discuss

to

may

of

Yet

they

is

are

certain

are

effect

risk

to

no

own

on

national

effect

pocket-

books

five

10

or

very

of 1957—

year

matters which

ultim

a

life and
to

te 1 y

Ford, II

Henry

literal

mean

death
all

us

'

,

affairs

of
Need

'

but more importantly, as

course,

international

and

adequate information, is an abso¬
lute essential.

businessmen,

as

or

people
we
send
to
Washington.
It's
our
responsi¬
bility to let them know what we
think—mot just on election day
but on a continuing basis.- In the
realm of foreign affairs, particu¬
larly, an informed public opinion,
based upon open discussion and

not

—

this

but

be

the

to

hence,

years

turning out to

voting the straight
We can't delegate our
ultimate
responsibility for

less
our

pub¬

party line.

mine—and

Long-Range View

!

mothers,

husbands, fathers,
man beings.

At the

hu¬

time, however, it is
equally essential that we have a

rich

and

secure

and

recrossed

t

events

that

events

in

that

world
our

are

far

corners

inevitably

future for better

or

of

American

long-range policy can the State
Department hope to avoid the dif¬
ficult problem of trying to sell

shape

to

an

them.

no

you

ing
that

will, on
mission
have

world

a

to

take

been happening

don't play freedom safe.

literally
or
give

"Give

means:

is

that

basic

concerned

desire

to

of

through,

come

place

felt

we

and then weeks in the face of in¬

surmountable

ing

odds,

it

profound

more

As

to

make

Hungary; 'the 'Middle
East ex¬
ploded in what was a thoroughly
confusing
sequence
of * events.
Britain and

France,

allies,

and

our

Israel—virtually

American ..protege — were on
one
side. ' We, the Kremlin and
Nasser
appeared to be - on the
other.

And.

urging

on

found ..ourselves

we

the

U.

N.

the

friends

crisis to
Out
come

a

had

brought

of ithese

two

in

events

the

hand in the

eign policy.
My
comments
premises

a vig¬
shaping of for¬

Changed
For

I

on

think

people.

and

readily accepted by most
*

&

in

uation, in which
cherished

speak

many

notions

no

of

our

most

longer hold

is changed.

pulled
in

San

Ford

Mr.

Francisco, Jan. 28,

before

the

Second,

Association,

1957.

change,

as

we

a

result of

away,

big

face problems that
I

}

ur-

and

entire

now

First Yugoslavia
came the riots

opposition

and

nationalist

candi¬

moderately

was

output

we

—and

that

lies

the

Polish

continue

to

satellite

pro-

be

heard

countries,

wonder who will be next.

even

some

can

the

must

leaders

Kremlin.

higher

New claims for unemployment
to

compensation dropped by 33,304,500 in the week ended Jan. 26, the United States De¬
partment of Labor disclosed.
New

claims,

workers
like

considered

losing jobs during

week

of

indication

an

given

a

of

the

number

be

re¬

1956.

j

.

.

The department also said the number of workers on jobless
pay lists in the week ended Jan. 3 9 edged down 900 to
1,724,900.
For the week ended Jan. 21,
1956, the total was 1,497,700.
'

r,

The
may
•

cost of living rose to a record
high in December and
higher, the Bureau of Labor Statistics reported.

go

The

agency's

price

consumer

November

to

last

index

months.

seven

At

the

118%

the

of

1947-49

went

average,

0.2%

up

-

time, buying power of factory workers reached
a new high for
any month. About 500,000 workers will get hourly
wage boosts of one to three cents as a result of the cost of living
same

increase, the Bureau stated.

-

,

;

.

*

Higher housing costs were chiefly responsible for the Decem¬
increase

3%

above

in

a

living costs.
earlier

year

At year-end, the index was nearly
3.6% higher than January, 1953,

and

when the Eisenhower Administration took
for

As

earnings

the

1956

average,

over.

the

agency i noted that spendable
than 4% higher than in 1955 but the increase-

were more

in real spendable
consumer

earnings

price index.

was

under 3%

'

because of
<-.r

-

rise in the

a

.t

,

.

The steel market is

catching its second wind. Now that Tears
sharp letdown have been discounted, steel users are sticking.;
normal buying, patterns. / Even the-automotive
.industry
is showing tentative signs of a steadier
buying rate, according to
"The Iron Age," national
metalworking weekly.
; :
r
of

a

to

their

Some mills

are

still

booking

steel than they are shipping.
strong demand is that the mills
near-capacity levels. A fall-off in basic steel

re¬

What depend¬

she place upon the satel¬

indeed

forces—when

they

are

operating at
production is looked for in the second and third quarters, followed
a strong pickup in the last three months.
The prediction for
the year is ingot production of
117,000,000 tons, equal to the 1955

by

record.

Automakers

on

of

apparently

are nearing the cutoff point in their
One worrisome rumoi* is that a mem¬

the Big

Three is cutting to the bone, intending to let the
quick-service warehouse in case it needs steel in a
hurry. But the mills are not likely to hold still for this, and the
automaker could find himself out on a
long limb in a pinch.
mills act

as

a

Adding to the general confusion on Detroit's intentions is the
indication given to one mill that automotive steel orders for
April
will be up.
This could be a hint of inventory rebuilding to get
set for

a spring upturn in car sales.
Meanwhile, steel order backlogs this week are down only
slightly from a month ago on an industrywide basis. Some mills
have added to backlogs in the last several weeks.
In the back¬

ground is the continued strong outlook for defense,
heavy equip¬
ment, and plant investment, this trade weekly states.
Consumer instalment
cember to

a

debt

increased $528,000,000 during De¬
outstanding at the end

total of about $31,500,000,000

of the month, according to the Federal Reserve
increases totalled $751,000,000 in 1955 and

Board.

December

$585,000,000 in 1954, the

board noted.
The

instalment

debt
increase
during the full year 1956
$2,500,000,000, the report stated. This compared
nearly $5,500,000,000 in 1955 and only $563,000,-

amounted to about

with advances of

United'States auto makers moved into
February last week
with the high-level production pattern
they had set during Janu¬
ary,

used

page

"Ward's Automotive Reports" stated

on Friday last.
January was 642,511 cars,
surpassing any month since December of record year 1955. Output
for January 1956 stood at 612,078 units.

Total auto production estimated for

Chrysler

her

upon
are

more

The best barometer of continued

share of

Corp.

and

General

Motors

Corp.

stepped

Continuetd

A

Pocono Hotels

on

Grinnell Corp.

Industry

Kalamazoo Vegetable

&

Curtis

,

Publishing 3-4% Pfd.

Parchment

Technograph Printed

Keyes Fibre Co.

Electronics, Inc.

INCORPORATED

SCRANTON




•

•

ALLENTOWN

Samuel K. Phillips & Co.

ATLANTIC CITY

Members
•

LANCASTER

34

The Printed Circuit

Reading Co. 3Vss, 1995

PHILADELPHIA 9

page

Continuing Interest in

Buck Hills Falls Co.

PITTSBURGH

their

Fischer & Porter Inc.

Units

Guarantee Bank & Trust Co.

•

up

industry output during January, compared to December

32

John B. Stetson Pfd.

NEW YORK

from

the sixth rise in the

000/in 1954.

undergoing

"agonizing

Continued

STROUD & COMPANY

of

week, totaled 277,100 in the

BANK STOCKS
largest Philadelphia Banks

than

And

Whom among her al¬

she trust?

can

their

re-evaluating their

with

armies—or

own

of

well-known

ence

lite

Send for comparison
of 11

of

;

000

elected against the

of

Surely all these satellite peoples

appraisal."

PHILADELPHIA

of

that

news

elections, the

Soviet bloc.

Russia, too,

Maintained in all

the

comes

slate

lations

Trading Markets

and
now

Germany, then in Poland,
then Hungary.
|

—must be

Active

But

next

from the other

this

production, however,
correspnding week of 1956.

*

ber

East

Rumbles

true.

by

Automobile Dealers

pro¬

purpose

obedient to the Kremlin.

And

;

industrial

relations

Relationships

dates has been

adarets

have

the Soviet bloc has
itself as an unshak¬

years,

resolutely united
that

based

are

which

the

in

while fractional declines took
petroleum industries. k Over-all

and

power

week

coal,

drive to reduce.inventories.

fundamentally changed world sit¬

*An

the
„

'changes
among nations.

abroad.

political belief, to take

three

subject,
It is
not only the right but the
duty
of every citizen who takes a real

National

the
and

head.

unmistakable>signs of

blame for the

feel very strongly that this
time for all of us, regardless

orous

this

to

sav¬

dictator whose

a

in the recent Polish

interest in such matters

of

provocative actions
against
vital interests of our oldest
nearest

of

course

a

effect

First, the events of the past few
months have presented us with a

on

old war¬

represented

a

electric

and

last

an

should

discussion

-of

sense

I have

months

in

evident

was

paperboard

ber

tried

we

time

place
the

had

we

able alliance of communist nations

of

in the

talk

to

realized.

would be

more

-

happen¬

than

Foreign affairs, 1 believe, is
everybody's business, and there
much

began

if somthing were

as

But I

we

be

somewhat

all over again.
But also, as we
watched them stand firm for days

look

expansion

lumber,

and

if they were fighting our fight

as

Business Failures

when

other
Hungarian patriots pleaded for
help and we wouldn't; or, couldn't

found

principle that I

with today.

recent

crises

new

electorate.

liberty

me

Mindszenty

you

Freedom

death.";,, And

me

of

We

,

is

they seem
might possibly go about
meeting those consequences.
quences

how

uninformed

events

off, if

what
conse¬
to hold, and

us,

It

;

short shadow-chas¬
about some things

about

solutions to meet

new

for worsp.

am

like

Only: through clear

a

the

earth-shaking events of the
past six months cast shadows, too,
but most of us just
didn't see
I. would

future.

us.

consciousness:

ing the neck of

diate

of

Index

J

great sense of in¬

action that had

rather than the imme¬

range

and continued enunciation of such

The

So

same

,

crossed

most

to
a

foreign policy; that looks at the

by
shadows v of
yet to corner-

off

will

is

land

shock

somehow

long

Coming events cast their shadbefore them, and today our

ows

points
help but

adequacy. We were reminded bit¬
terly of a truth that lies deep in

that matter, just by exercising the

franchise

of these

cannot

concern

Cardinal

your

You

Production

and

of the tremendous curi¬

and

ticular
felt

seriously believes that
we
become good Republicans or
Democrats, or good citizens for

and

on

business

of

wisdom

people every¬
where have been showing about
the events in Hungary and the
Middle East. Hungary was a par- '

Nobody

direct

a

to

sanity,

the first

aware

osity

Industry

nation, as a govern¬
people—and act with

obvious..

be

wrong.

matters which

have

the

at

moved from the
ness

contribute

and

and

Some

I think

-

Trade

Price

Auto

to

fast in international

a

a

uncommon

lic discussion of such issues—even

seem
far re¬
day-to-day busi¬
making and selling cars.

that

matters

mind

his

some

have

to

Retail

Commodity Price Index
Food

unity.

our

I

as

going

are

affairs—as

caught asleep at the switch
in the field of foreign relations, Ford Motor Company head
calls for vigorous foreign policy that faces up to America's
responsibilities of world leadership and leaves no doubt about
the U. S. position on pressing international problems.
The
former U. S. delegate to the U. N. suggests realistic and longterm programs of trade and economic aid be devised, but not
to buy love or friendship.
Speaking as a businessman, Mr.
Ford believes enlightened trade and aid is in our own best
long-run business interest if we want to do business with the
world. Depicts foreign countries' responsibility in encouraging
the growth of U. S. investments abroad.

V

Carloadings

of age

come

Production

Electric Output

State of Trade

Third, in order to meet and beat

cards,

President, Ford Motor Company

Steel

The

our

future.

the challenge of this new hand of

By HENRY FORD II *

,*■

Thursday, February 7, 1957

.

16nger eVadd—ahd that

both

ities and tremendous risks for

we

,

*

A Businessman's Views of

Cautioning

.

Phila.-Balt.

Stock

BOENNING
Established

Exchange

Pennsylvania Bldg., Philadelphia
Teletype

N. Y. Phone

PH 375

COrtlandt 7-6814

&

CO.

1914

1529 Walnut Street

115

Broadway
New York 6, N. Y.
CO 7-1200

Philadelphia 2, Pa.
LO 8-0900
ATT

Teletype PH 30

Mitchell &
120

Company

Broadway, N. Y. 5

Tel. WOrth 4-3113

Tele. NY 1-227

Volume

5610

Number

185

.

.

The Combiercial and Financial Chronicle

.

in

Growth Prospects in
By ALAN A.

Electronics

SMITH *

,

the

United

tallipn.

about $40

States is

it

,

;

,

No matter what the
over,

;

5

(669)

.

base, more¬

clear

appears

the

that

electronics industry is expected to

Director, Investors'
'

*

r

:

series on the price performance of split stocks

of all

action

market

results

were

A study

and

;

adjustment

7

As

*

I

and

previously,

as

; /•.
was shown .in

a

in last
often than not
price between the split an-

market

in

rise

the

the

Indnstr»e-.

been

paid

in

recent

is

omitted

years.

from

* ~

"

..

.

the

study

have

of

Performance

Indexes

ing

Stocks Split During 1956

prior to Announcement

weeks

(2

=

100)
After

Industrial Average
122

—

___i

121

110

J

Change**

Change**

107

*■

■>•"""

Dividend Change**

96

—

Price

—

Change**

This

change

in

Standard

93

•

94

*■" ■

and Poor's Average

of 50 Industrials.

or

psychological motivations of style—as are manifested in
Chip-ism—is substantiated by the tabulations in our preceding
the sharply divergent market

performances

from

ac¬

Rio

Grande,

Union

Nickel Plate);

apparels
papers

Pacific, Rock

Northern

Pacific,

(Manhattan Shirt, Phillips

Island,

Fidelity

Phenix).

Continued

on

that. these

manufactured

of a radio or TV
10%-15% to the man¬

markup

erage

is only

.

.

power,

>vbjs profit margins are correspondingly somewhat higher. But as

industrial use of such equipment
Continued on page 23

lit¬

any

Ho

am

industry

announce

(/tat

H.

WALTER

BERTON

Member Aeu> 1 orb Slock

has
record

Exchange

that

successful

a

/i/eaAed to

Mr. George

WALTER S. MORRIS

earnings

major part and where progressive
management
has
supplied
its
scientific knowledge to improve

Within

supply for public

ERWIN

WOLFF

\ f-1

/mn admitted
/
U&OO

consumption."

a.i

fyenemr/ 0>aidtirv<S

S/'c/i'ua i'tjs 7,

aJ

8
-

7957

Describes Electronics Industry

with

Now

generalizations

these

in mind, let's see if we can

the

define

industry

electronics

more

'

**>

are

we

the

METROPOLITAN

Unfortunately for a sim¬
ple definition, the industry itself
comprises a number of different
sub-industries and techniques of
manufacture and
distribution.

closely.

pleased

to

announce

formation

of

CORPORATION

DALLAS

You

have

the

assembly

line

HERMAN

rj

op¬

produce

that

at

m

to

household
TV; you have the producers
of military electronic equipment
of every conceivable description;
you
have the manufacturers of
erations

I

/ore me

and

INVESTMENT

telephone

ri-1-1353

BANKERS

teletype

dl-103

electronic
Vaughn

GEORGE

S.

Building,

Dallas.

Texas

PRESTON

ROOKER

PRESIDENT

A.

PEAK

VICE-PRESIDENT

,

business

machines,

the electronics

BASS




SHERRILL

E.

EDWARDS

istor

♦An

has

industry if it uses

changed

address

Financial

by

Analysts

all

that

at

0/

a

H. STONE

Honei'al 0a rtiter

/limited 0aidner

a

Jfanuaft/ 37, 7957

the

instrumentation com¬
panies, and the producers of com¬
ponent parts—the raw materials
for the industry.
And you can't
even
say
that a company is in

specialized

electron tubes—because the trans¬
HUGH

this seg-

contracts for component parts are

,

Spending

States

United

to stockholders,
employees, and rel¬
atively stable employment, and
I will show you a business where
scientific research has played a

and

page

in

fair

of

Jones); the over-producing

(Continental,

insurances

;

of looking at it is
companies are assem-

fair wages to

(as Denver

(Champion, Chesapeake), and the cyclical now earnings-

headachy

spe-

industry represents an appreci- iquentiy "more specialized thari-the
able
portion
of
the
available t'kr0£ucer of household items, ahd

leading manufac-"

the

me

turers

(including Sears, Ward, Federated); the

the stores

more

quite

.

following to say:

A. Sloan has the

experienced

the rails

company

factors that influence

various

the

post-Suez crisis swing away from involved companies—certainly
irrespective of split), and defense issues (as U. S. Hoffman).

quite uniformly sour included

our

the making of money.

"Show

Groups

in

factor

like to pass along a
remark by a man who has cer¬
tainly become quite familiar with

Republic); the oils (as Standard of New Jersey, Standard of California, Royal Dutch, Gulf; and other beneficiaries of the recent
■

producers of

Another way

I'd

erature,

cording to industry groups, over both the full-year 1956 and the
1955-1956 periods. Uniformly very strong were the booming steel
industry issues (as split Allegheny Ludlum, Armco, Carpenter,
-

the

cialized electronic gear.

across

vary

come

on

statement

articles.
saw

have

We

.

qualitative.

prevalence of other price-determining factors, be they
expectations regarding business prospects,

we

size

total

its

technology. Obvi- faoth
. at(J and corporate.
For
ously, working as I do for a conth
annuaI cost for
suiting engineering organization, comparison, tne annual cost
I have to arrive at some such con- buying and operating automobiles
elusion, but rather than try to
...
prove the point by quoting some

just

Thus

second

a

in-

.

and that is a heavy de-

pendente

actual earnings, popular
Blue

growth

three

have'

dustries

improvement in market price following

rather to other factors—quantitative or
Such

to

and

extremely
competitive, and it is only the
largest companies that can take
proper advantage of mass produc¬
tion techniques, including automatic assembly lines. As an bi¬
teresting side issue here, many

some

widely.

to;exclude specif¬

of

these

common,

split is generally not attributable to the stock split itself, but

the

as

want

ically the companies that empha¬
size military electronic equipment

an^cloTeV^

95

.

analysis of the 1956 splits substantiates our previous con¬

clusion that any enduring

or

is

group *

ment of the industry is

_

Now
the

for

heat

or

This

'

Companies with Dividend Increase
75 Below Industrial Average
/

^♦Adjusted

reaction

I

cause

-

artificially defined be¬

everything from presumably authoritative esti
let on the basis of a 'very nar¬
fine pharmaceuticals to the latest mates
issued
in
January, 1955, row price differential, and the
in wonder metals.
And last, the that ranged anywhere from $5parts manufacturers themselves,
electronics industry embraces $10 billion per year for the in- in
turn, are therefore <restricted
those
industrial
operations that dustry
sales
total.
The latest to very low profits.
•
control energy, either in houseestimate put out by Syivania inThe manufacturer of industrial
hold,, equipment,
or
industrial, ;diCates an $11 ¥2' billion industry electronic equipment, - including
1956.
In'
processing,
or
for communica- .< in 1956; In any event, what is
"'u"+
tions, or for electronic calculation, commonly called the electronics
production

Split

Companies with Dividend Increase

Price

materials into
The energy may

chemical

electricity, but it's applied to the

<> Months

After Split

a

television.

and

somewhat

dealers..: Consequently,

companies

First,

dominant

the

factor is sales of household radio

further, let's look
itself and some of

any

at the industry

the

same

course,

and

ufacturer, and an additional 50%55% is added for distributors and

that make it up.
generalizations. Since
finished tive iiidustry is fairly diverse and
be that fairly hard to define, estimates

of energy, convert¬

user

raw

goods.

3 Months

Dividend

chemical

The

the

of

the

belabor

than

rather

definition

old standby, coal.
industry is a con¬

that

•

of

Above

devel¬

recent

Grouped by Dividend Relationship

1

en¬

Industry

Electronics

The
But

are

elec¬

large,
companies, al¬
By

by
others.
They are therefore
extremely cost conscious. The av¬

elec¬

of

Alan A. Smith

opments,

dividends

no

the

of most

industrial

and

equipment;

though,

set

gas,

in

the

biers of components

electrical

into

and

cases,

you

sphere

the

Suppliers

get down to

any

gineering.

and

'

because

tronics

—

light

spicuous

Market

to

time,

of

period

of

out

pass

1 eum,

r o

up

basis of

for

sustained

are

reasonable

in-,

natural

price had fallen below the pre-anouncement level by three months
after the date of the split—more than wiping out the initial gain—
and continued below the pre-announcement level six months after
.

t

p e

currents

energy-,

dustries

often.. Electronics is

more

tronic

they

handy

fairly

one

current engineering. Whenyou have even
modest-size
electrical currents as you have in
your
home wiring, and if such

with

producing

is

there

dras-

more

ever

for

other

May

the

first group we might consider in¬
cludes the suppliers of both

definition that will serve to separate the predominantly electron*cs comPanies from the electrical
equipment manufacturers—a definition that really ought to be

its

growth
Wilfred

But

and'

outlook

A.

change it even
tically in the future.

*k X
used
§|f!||1°w

source1

ares

s

more;

split.

emphar /

energy

h

V-

Nucle-

a

will

two

.

an-

of

7 continued above the pre-announcement level. On the other hand,
where the dividend increase was below the industry average, the

the

or

sizes

irrespective

dividend action appeared to
important influence ;on the
price trend. Where the dividend increase was
above the industry average, the market price
exert

have

one

onics

however,

date,

in

other.

split was accompanied by a
dividend increase. Following the effective splits
whether

of

common?

in

they

.

en-'.

with

form

•

•

tabulation

nouncement and the effective date

-

'

that

ergy

,"V''
our

chemi-

nucleonics,

electronics

and

' submit

deal

for. dividend

week's article, there was more
*

have

things jn common." First, they all

made for the general market's

was

movement,
changes.

Now

household

cals

to

Equipment

industrial, military, business machines,

What

and for which analysis of
the results could be completed to cover six
months after the split became effective.
Full

by

level

on

Looking
even further, the
industry should
exceed $22 billion a year by 1966.

effected

months of last year

is anticipated

the

billion

Sylvania's estimates.

and instrument
manufacturers electronic groups. Concludes that major char¬
acteristic for the industry is growth.

has been made of the

$15

growth opportunities for various firms in household

assesses

splits (of 2-for-l or better)
during the first three

of the 21*

which

stocks.

bringing

through automation, and color TV prospects, Mr. Smith

tion

the stocks split
during the first quarter of 1956 confirms our previous conclusions
as to the preemptive importance of non-split factors in influencing
Analysis of the respective dividend actions on

the

1960,

equipment engineering, achieving manufacturing cost reduc¬

.

total volume

about

needs, accommodate basic changes in electronic

automation

MOVEMENT OF SPLIT STOCKS

An increase of about 75%

grow.

in

By delineating specific outstanding trends in the diverse and
hard to define electronics industry, such as ability to supply

THE REAL DETERMINANTS OF THE PRICE

The fourth article in a

Little, Inc.

Services, Arthur D.

Cambridge, Mass.

and

Mr. Smith before
of Philadelphia.

the

MODEL, ROLAND &
1

Members Sew York Slock

120
20-24

BROADWAY
Moorgale

LONDON E.C. 2

STONE

Exchange

NEW YORK 5
370 Rue St.-Hoaore
PARIS

ler

6

(670)

The Commercial and Financial Chronicle

Because

Outlook for Construction

of

ice

pi

amount

balance

By MILES L. COLEAN*

no

physical

construction

1955,

-

Despite sharp decline in 1957 housing prospects, because of
"messed-up condition into which the insured and guaranteed

In spite of all
the

outlook

still

bright.

the strain

for

The

slackened but

ahead,

construction

is

pace
may
be
forward move¬

the

ment looks

assured.

office

ings

delayed,
ters

get

since

their

but

money,

will

House

ing,

270,600

The

Miles

in

housing

L.

hold

Colean

prospects

for

lies in the messed-up condi¬
into which the insured and

tion

guaranteed
been

mortgage

allowed

to

has

area

Here every

get.

indicator points to

sharp decline

a

in

activity. FHA applications on
newly-constructed houses in No¬

vember

25%

were

October

and

below those in

the

total

home applications
and

November

that of the

number
and
was
ure
'

in

of

26%

months

new

telow

in

1955.

appraisal of

homes in November
those

of

during October

was

same

VA requests for
low

were

October,

requests

and

lor

the

October

November, taken
together,
nearly 30% behind 1955's fig¬
for

those

months.
'

' •

'

FHA

"

•

units,

'

of

spring, and since there
before

*

be foreseen.

"Summary

before

Board,

the

FHA

VA

and

possible

around

on

is lit¬

the VA in¬

'that, time,"no

The present rate

a

York

talk

by

Mr.

Industrial

City,

Jan.

Colean

Conference
18,

in

an

rates

struction

sorb all the credit that
may

tional

the

of

the

and

itures

new

1956

for

reached

a

and

certain

1857.

lays 8%

greater than in the

an

'be

be

insulated

strong

is

'

"

•

David

truth

'.being

ruption- of

the

in

the

industrv

crisis.

abnormal

tem¬

a

burdens

ter

ahead

in

the

We

.

free

re¬

world,

economy of na¬
We see, at tie

imposes

new

commitments

American

live

in*

Government.

world

a

foreshort¬

ened

by modern communications,
closelv
interdependent
and
as

the

been

has

the

petro¬

related

entire

naticn.

puts

-

business

than

the

the

on

and

time, how it
military and fiscal

a

construction

of

from

Europe,

same

upon

months

inter¬

oil

of

all

shipping

after

whole, the picture is for
only good but somewhat bet¬
ex¬

sensitive

as

seismograph to dis¬
perienced during the past year. turbances in
any of its parts. Not
Among the major categories,
but even
states
of
res-; only events
ervations .heed be made only for mind
in other countries on other
private residential building; and continents
have
a
direct effect,
even
here, though unit produc¬ for good or ill, upon our own

con¬

out¬
pre¬

tion

will

both

the

lower

he

dollar

utilization

of

tnan

in

volume

19o6,

and

materials

for

vitality and welfare.

the
-

new

most

United States investors can
buy
Canadian securities which offer

through
sound

us

complete investment

service

to

V

a*«

*

*

on

The

re-; am

b?

see

period

munism.

no

this basis without hes¬

on

In view of impending de¬

and

the

unknowns

mar¬

in

the

front

V

A
Correspondence Department
by mail.

V

Private

teletype service

Canada and
V

to

to

to

our

New York.

Canada, and

through

offices

/

Membership in The Investment
tion of

deal in securities

New York Jknseatic

Dealers' Associa¬

our

Opens Chicago Office
CHICAGO,
Hanseatic

invited.

the

the
J.

LIMITED

Calgary

Ottawa

Kitchener




WEST,

of

TORONTO, CANADA
London

Hamilton

Sherbrooke

Windsor

New York

New

—

South

a

announces

Street

joint management

the

stock
as

of Herbert

William A.

will

serve

under

as

Sholten.
manager

department and

manager

of

the

Mr.

bond

...

-

The firm also

lation

of

a

announces

direct

instal¬

private wire to

Perkins & Co. in Dallas.

our

every

national
in

budget

and

butchery

the

rock-bottom

struggle

flames

between

and

freedom.

that

devoured

Hungarian

liberty helped us to
grim facts t at had been ob¬

see

scured

by

wishful

thinking

weariness of spirit.

clearly

that

that the
be

We

the

cannot

menace

.■

be

values

at

saw

of

innermost

life;

that

in

stake

the

our

last

ideals,

our

spiritual

values.
'

We

There

,

settle

analysis

those

are

for

who

not

seek

this

Even if such a compromise could
be reached, it would soon
enough
prove a delusion and a trap. • For

while

side

our

would

abide by

sound

of

are

much
In

us.

bone-tired of

Soviet

fensive

alliances—t

would

use

it

for

the

Soviet

<e

Russia

Besides,

device

a

Be

to soften

Callous

cannot in the longremain uncontaminated. when

run

half

the

with

we

human

the

is

race

of

sores

festering

terror

rest of that

pestiferous complex.
lurks
great

danger—the

danger

t

e

shadow

solutions for their substance.
Until

indulged
tions

posed
at

t'"at

But in

mistaking

recently the free world
in
optimistic expecta¬

because

"new

home

and

of

look"

Moscow's
of

smiles

sup¬

moderation

abroad.

The

them

we

address

by Mr. S?rnoff before the
Junior
Chamber
of
Com¬

24.

1957.

had

ing

as

by

if it

turned

nations

be
on

munists

under

captured

the

nation

and

the

and
with

made

militant

Noth¬

from

conflict

day

endowed

sources
a

a

will.

the
was

Com¬

Lenin and Trotsky

great

a

the

thing
faucet,

some

further
the

inten¬

"stop

were

off at

Actually

initiated

good

we

on,-like

turn

could

facts.

War

of

War,"

and could

licly to question the slogans
"peaceful coexistence."

Jan.

the

nations,

hear voices, some

we

inspired

pleading that

Cold

for

"An

to

sacred.

Repeatedly

general eagerness to find a magic
shortcut to world stability was so
great, that it took -courage pub¬

merce.

faced by still free
the martyrdom of

hold

we

tions

of

indifferent

peoples already in Communist
captivity.
Such callousness goes
against the grain of everything

of

of

remain

to

of

fatigue

tor¬

and

ture, degradation and despair. We

and

Communism,
Maoism, Neutralism,

Titoism,

side

kill.

as

Cannot

its program cf world

the Cold War and the

it

—trustingly dismantling its defen¬
sive setup and relaxing its
de¬

and

supreme

challenge and would be
happier if it c'id not face
us

would

world

a

permanently
divided, half-free and half-slave.

or

did

go

way

can
be no enduring half¬
house between good and evil.

menace

our

not

they

of

core

away;

must

tnere
way

stitutions,

our

and
more

Communist

wished

compromised because
the

to

para¬

news¬

the

unon

of

lurid

cannot

Minneapolis
4

in

of

-

.

Communism

diplomacy. It
provides the acid tests of our in¬

branch office at

LaSalle

Burke

York

department.

Vancouver

Quebec

opening of

Sholten

-

Winnipeg

111.

Corporation

Burke and

Mr.

Investment Dealers Since 1921

Montreal

gen¬

The

challenge to our
by world Com¬

and

taxation and

the

'

McLeod,Youhg,Weir & Company
STREET

a

world

historic

It is spelled out on every

fact, most of

120

KING

suggest

across

Inquiries from investors

50

I

eral
reappraisal' of the outlook
toward the end of March.

broker affiliate,
membership in leading Stock Exchanges in
Canada.
are

area,

minds

realities

posed

page

cast,> in

.

legislative

this

of

bursts

complacency could
the
uprisings'
in
in all Poland, and

History, in short, is compelling
to look again with open eyes

and

us

that the

agree

the

residential

velopments in the financial
kets

is

civilization

itancy.

Department with up-to-date informamajor Canadian companies.

we

problem

the upgrade.

be made

■

sure

mount

situation aside,convincing reason for.
modifying the forecast I made last
fall, and consider that, plans can
I

A Research
tion

on

important aspect of the
international situation.
I

present

and
improvement expend¬
itures are, and should continue to

T

United States

the

pair

be,

investment^

*

investors includes:

<

many

qualities. Some of these also have attractive
growth
possibilities.
V
Our

scanty evidence provided by
financial figures, residential

vodka

But

Hungary.

us

con-'

intrigues

Burma, and Comrade

survive

a

Supreme Challenge
construction in 1957 will be
For these reasons I have selected
fairly
up to tlie level cf the year how:'
to discuss what seems to me to be
closed.
From
the
admittedly - the

Sound Canadian Investments

hopes generated

Soviet

Poznan, then
finally the horrifying

how

see

quickly dislocates

of

distorts

not

flow

the Middle East

tion

As

been

in
East; the Red Chinese

of

bluster.
not

even

the

Khrushchev's

Sarnoff

and

Outlook

ex-

emplified
clearly enough
by the current

porary

a

Total

had

But somehow it survived "

the failure of the

invasion

This

sources

Good

long

of

underneath.

the Middle

We

in

features

deceit

complacency

shaken.

Suez

in

old

same

and

around the Geneva "summit"

is

bigger

elements

Our

ference;

past;

-

.are

the

savagery

world

SchoqJL,building, despite the leum,
need
for

y's

r

ugly face

surrounding

:

sewer

ripped the smiling mask from
of Communism, to

reveal

could

-

the dramatic events

came

impacts of the

in¬

These

that

the

against the

.

ex¬

all

even

activities.

to

war..

Coexistence Exposed1

Then

time

count

its advances but shows
signs of at
least a modest acceleration.1

vious year.

1957.

an

u

achieve

all-out nuclear

an

■

any

economy

-

con-

The

when

•

larger educa¬
tional plant, has been
sluggish in

$43 billion reached in 1955.
Pri¬
vate activity advanced
only 1%
because of a
sharp drop in resi¬
New public

year

are

tides.

\ "

institu¬

year.and

for

are

obvious

new

building.

big

water

high level of
$44.26 billion, 3% higher than the

dential

and

highway and

preliminary

construction

hand, 'another

at¬

the ebb and flow

of -international
v

all

future

the

gauge
upon

as part:
classification.;

The advances in government
construction in 1956 .are attribut¬
able mainly to

Departments of
Labor, expend¬

Commerce

-

to

contingent

times

1957.

-•

to

tempts

critical

slack¬

a

Public utilities have had

come

■;

these

building) retain full vigor

ceptionally

-

cannot

determine to

must

we

Russia will make the Kremlin seek

In

except hospital building.

ab¬

*'

-•

building;

(religious

Urges

worlds

war by
taking advantage of present ;
allowing the propitious West to take initiative withall the political and psychological forces now at our dis¬
posal. Takes sharp exception to the theory that pressures in}

y

..

they

nonresidential, non-business

ac¬

irreconcilable

since

.

conditions

office building is in-,
All elements of private

dications

to

•

award

activity> data,

other

prospect.

of

Credit

able

contract

commercial

the

under-'

can

victory-over the cold

j

of increasing

My view remains that credit is
the principal determinant of
hous¬
ing volume and- that the housing

way.

the

"they

be inter¬

may

to

of

measures
will have much
effect than I have taken into
account in this estimate.

well

whole.;

•

indefinitely.

restaurants, and garages"

more

remains

current

On

these

market

'•*.
"

"stores,

are.

lending

continue

so

ening in the rate of increase of in¬

all

expansion

the

a

that

fallacy

dustrial and commercial
building,
with a ver'y noticeable weakness
in
the
sub-category of

tivity is certain, it is doubtful tha'S

Blames

from

vate residential

might run up a
Tne sum of such

VA direct

decline

adequate military strength,
same time, we not give

to miscalculate

reason

of>peaceful coexistence,

->

able

pie this way: a slacken¬
ing in the rate of deplihe of pri¬

200,000
and

as

trends

as

read

little better than

interest

and

FN MA and

far

preted

units;

struction, however, called for

of

National

New

volume

130,000

conventional

700,000.

According

present up-turn in these activities
can

So

a
distribution would still -give a
figure of slightly over one million.
Although further * adjustments in

Rate Increase

tle chance of action
rate

VA

a

financing

total

estimates

terest

sector when taken

Kremlin leaders

gov¬

were

to maintain the

and

to

at

own

construction

is equated with fear of

war

the free world against "excessive

take adventures in aggression without
risking American inter¬
ference." Mr. Sarnoff exposes what he considers the

stability of the
Significant also was the
noteworthy gain in government
activity compared to: the almost
neutral
position
of; the private

vol¬

s

.

Since the Dec. 4 increase of the
FHA interest rate is not
likely to
have much beneficial effect until
late

the

while

cash

its

'

ii

its

new

26% be¬

'
*

VA

in

v

whole.

lowest

it did for

as

units.

drop

FHA should do

main

warns

patience and wisdom, and that, at the

v

significant about 1956
in which notable
private
nonresidential

way

ernment:

house

new

the

was

new

worst,
may

profound hatred of

our

RCA Chairman

war,

.

*

building, public utilities, and

units.

new

Denying

was

nothing spectacular.

to offset the residential

prior to 1954 and totaling

able

a

area.

difficulty
analyzing
1957

1956

1957

remains

of

Taking the prospect at its prob¬

however,

problem

rate

to

1946, accounting

readied

was

it

year,

was

the

gains

actually held up much better,
being
higher
than
any
total

build¬

-

What
was

ume

projects
proceed.

By DAVID SARNOFF*
Chairman of the Board, Radio Corporation of America

Nonresidential Gains

as

only 196,800

a

great many
new

annual

an

close

in

Thus, while 1956

construction

the whole

makes

Everything

activity

not

may

good

on

year.

business

new

The volume of FHA

cen¬

-

ical volume.

surprising.

some

shopping

Of World Communism

categories

dollar

,

a

900,000 units
during this period should not be

be

the

greater and the increases less
when considered in terms of
phys-

very low level of starts
under these programs in the
early
of the year.

down

separate

construction,

Facing the Facts

comparing
drops

a

months

starts

the

in

of
did

fear of war.". Advises
maintaining

initiating

certain

considered,

Some

build¬
may

of

in

of

than

are

mortgage area has been allowed to get," Economic Consultant
Colean pictures the construction outlook a3 a whole as not
only

good but somewhat better in months ahead than in past

Moreover,,

on."

volume

a

Thursday, February 7, 1957

.

the

produced

larger

trends

Economist Consultant, Washington, D. C.

changes,

expended

.

.

and

of

it

populous
vast

re¬

the

fanatic

base

world

movement.

Why, then, did the phrase Cold
than

come
a

into

common

usage

less

decade ago, with the Soviet

conquest of Czechoslovakia?
because that
democratic

was

Only

when the major

countries, with the ut-

Volume 185

Number

5610

.

.

.

The Commercial and Financial Chronicle

ft

(671)

-s

most

reluctaiice,

nized

the

not alone

finally

the

Communist
survival

own

Soviet

but

the

fact

fast

Too many

We did
simply
its., existence
and

acknowledged

The

The

offer

truth

that

is

the

its

Kremlin

if

it

cilable

desired.; The

so

existence

Of

such

two

worlds

mere

and

ours

be

cancelled

out

soothing rhetoric and peaceful
existence.

dedicated

co¬

ruled

much to
of

in

but-in

words

deeds

ple and

to

peace

success

of

road

the

to

in
If

nerves.

toward

a

yoke.

tention than
the

world

So

mad project, is not

to

counted

on

and

small

countries

Korea,

when

and

exploit

those

deter¬

of

Red

have sufficient

any

reason

world

conflict;

against

another

new

not

a

to have

curious

gained

and it is worth

theory

new

ground

some

examining

.

.

.

one

writer has called it the "wounded

beast"
Soviet

totalitarism, but against
Their military plans

have

theory. It holds that the
leaders, cornered and des¬

perate

because

of

convulsions

the satellite countries and

headaches
into

an

at

home,

may

all-out nuclear

always

taken

into

in

growing
plunge

war.

supposing that Soviet Russia is
wounded

ships

make

troubles

day.

as

It

blood

war,

did,

Hitler

as

ast

Dictator¬

his

are

was

just

successors

after

to¬

the

with rumblings cf
echoing through his do¬
Yet, far from choosing wai„
purges,

unrest

main.
Stalin
the

appeased Nazi Germany tu
limit, in the hope of stayfii^i

out.
In

a

simpler past, when

war

dicT

not involve the likelihood of total

devastation,

governments

wer»*

sometimes tempted' to seek a way
out of domestic difficulties
througl*

that

conflict.

two

were

Argument

assumed.

as

when -they, are supremely confi¬
dent
of
easy
victory. In 193?,
Stalin was as beset by internal

foreign

Refutes "Wounded Beast"

account

the

war

For

enabled

this

The

reasons.

a

there-

first

war:

government

possibility" of/r having to fight
to assume the kind of extraordi¬
a
war
on
two fronts: against the
The moral of the theory is that
nary powers in dealing with in¬
foreign foe and against their own the free world must be extra care¬ ternal problems which it dared,

like
.

the

occupation.

they

fear

from

Recently,
seems

free nations.

achieve their objectives

?

do to the fact that

defectors

armies

though

gamble them in one torow.
They have resorted

against

we

at¬

more

only

were

dice.
to

paying

are

foreigners who helped
the Hungarian rebels on the
spot,

•/"

Kremlin,

They

madmen.

Finland

peo¬

troubled world,

a

war

only

would

—

the

to

renunciation—not

bring freedom to the Russian

sure,

from

us

fortify

1941, when, literally million^'..of rents.
Already ^e ,have, tens, of
troops surrendered with only millions of actual and potential
token resistance. They cannot for¬ allies
behind' the
Iron
Curtain.
get that, close to a million Soviet The larger their
numbers, the less
citizens took up arms against their likely
the
Kremlin will
be
to
own
country in the desperate hope stake its life on a showdown by
of
throwing off the Communist war.

They value this
time
their position and their power toobrand of

faith, their system and their
true

major

memory
of
the
early
of the German invasion

Plain good sense is our warrant
for doing everything we can to

Red

do.

we

be

-

by

their

A

than

may

war

clear

a

sive against freedom and morality
is not a whim.. Jt is the essence of

power.

a

stop

can

Actually

Communist offen¬

The

as

conquest.

the

by

we

relentless

have

has set up fields of tension, forces
of-attractian and repulsion, that
cannot

less

war

and his brethren have

in

to have

seem

fighting
the
Cold
War
effectively
by
frightening us with the spectre of
Hot
War,
the Communists - will

irrecon¬

theirs

as

fear

they

itself could not call off the contest
even

people

Kremlin,

counts this

resistance.

some

vivid

a

persuaded themselves that the So¬

it out.

viets

to

matter.

U.S.S.R. Fears War Too

that,

not start the Cold War—we

resolved

another

months

amassing

the power to carry

threat Khrushchev

by

their

to

was

Russia

hostilities—is

of

magnitude of

threat

blackmail

to

us

opens

recog¬

they

swift and easy victory.

people.
What has
happened in ful not to annoy or frighten the not assume in peacetime. The sec¬
and conviction Poland
and
Hungary,
and
the beast, or it might grow rabid and ond was that an external threat
revolutionists, with a flair
deepening ferment within Russia reckless. Ironically, only yester¬ could be expected to rally this
for aggression by methods short
'itself have turned that possibility day we were
being urged from citizenry, in the fervor of pa¬
Cold War Continues
of a shooting war. :"
' \ "
into a certainty.
many quarters to be cautious to triotism, around the
leadership.
Communist strategy is SIMPLE
Little as we relish it, we must
the point of inaction, because the
But
neither
of
these .reason."*
Two-Front War
face up to the fact that the Cold —Let me spell it out: S for sub¬
Soviets were over-confident and applies to a terror
:
"
regime lifes
,~ri:
;}
War continues.
with
Better than anyone else the men intoxicated
Recently the So¬ version, I for infiltration, M for
power.
Today, Soviet Russia's. The Kremlin al¬
viet heirarchs and a batch of their manipulation, P for
penetration,* in the Kremlin know that a major we are admonished to desist from ready exercises total
power,
£»»
East European/ marionettes pub¬ L for liquidation and E for ex¬ war would be the
signal for revolt firm action for the very opposite that a war crisis would not en¬
lished
a
resolution
complaining ploitation. Already that "simple" in every one of the satellite states reasons, because the Soviets are hance its ability to deal witb.
has
made
them
the and possibly
that the West is trying to "return technique
which domestic troubles.
And far from
in, Russia proper. uncertain and wounded
the world to Cold Wan" This was masters of one-third of the human Doubt of the
a
loyalty of their own merely goes to show that there expecting
surge
of
patriotls:.
is never a dearth of alibis for do¬
race, with
beachheads of power subjects and armed
simply another of their big lies.
unity with the start of war, Efc
forces, the
That war has never been inter¬ in most of the rest of the world. near certainty of rebellion in their ing nothing.
must count on crippling defection
but

spell

defeat

the

for

they

leaders of the Kremlin.
'

'

Both

brutal'

by

training

are

'

.

rupted-by

them.

Even., in

months when Moscow

the

talking

was

of

moderation, liberalization and
peaceful coexistence, it did noth¬
ing to reduce or weaken its global
of militarism and

apparatus
chief

such

—

stake

their

regime

nuclear duel is not based

on

on

European empire—these
in

a

deterrents

started

logic.

to

a

are

world

builtwar

by.the Soviets..

neither

But

political

nor

"wounded

.

modern

logic

beast"

history

support

argument,

and

the

insurrections.

Thus the idea

that

Continued

even

our

on

mis¬
New

Communist

its

as

The fear that the Kremlin gang

»

might

.

Issue—Exempt from Federal and

New

York State income

Taxes

parties, its Red para-military or¬
ganizations, its mass of radio jam¬
mers, its hordes of trained agents

inflaming
The '

.

civil

all

areas

carrying
with

strife/, in..fevered

around

the

world-/

Communists

the -"cold"

on

:-

Jiave.-

been

struggle

all

the
weapons
in. their
from propaganda to-local¬

armory,

ized

"We

will

to

recently boasted.. Not exactly an
elegant expression, but we would
be

naive

if

cisregarded

we

menacing threat.
A

one-sided

the

Cold

War

change

.

of

.the

War.

sized

But,

whether

United

States

is

a

We

,

must

pleasant
cold

prevent

'

,,

solemnly pledged

variety,

alternative

the

though
it is!

war

to

fear

could

dilute

only
with a

it

Dated
-

"

'

.

of

to

come
war
can

is

cloud

,

as

■

•

-

\

,

war.;

Exempt from Income Taxes in the State of New York*'>

up,

To

That

judgment,

leaders

yield 2.00% to 2.85%

;

-

according to maturity

our

the

firm

States

belief

would

cannot

we

Kaiser

world

that

stand

Moscow's part.

hatred of

war.

We

to

wisdom

to

offered, subject

„

of

as

to

prior sale

before

or

after

and if issued and received by

us

appearance

of this adver¬

and subject to the approval

legality by Messrs. Caldwell, Marshall, Tr.ruble & Mitchell, Attorneys, New

York City.

"

our

are

The First National City Bank of

Surely

same

*

-

in

York

Ilalsey, Stuart £ Co. Inc.

encourage

order

"

•

Merrill Lynch, Pierce, Fenner & Bcane

profound

determined

to exercise the maximum

and

are

and

wars

aside.'

We do not conceal

Bonds

tisement, tor delivery vv/ten,

the" United

miscalculations of the
on

These
v..

well become

the

afford

be added)

dread of

our

seek to head off may

to

should

gresSion without risking American
interference, the catastrophe we

off

from issue date, and thereafter,

j

face

our

believe that

But

ten years

stated in the Offering Circular.

-

.

so

touched

amended.

By Act of Congress, these Bonds and Interest thereon are
Exempt frtm all Taxation now or hereafter imposed by the United States

inherent- in

of

Kremlin

inevitable.

as

Legal Investment for Commercial Banks, Savings Banks and Trust Funds in New York and many other State4
. ■
and Legal Investment for all National Banks organized Under the Laws of the United States.

'

-

overwhelming that they
undertake adventures .in-ag-

Hitler

than

."*

War

should

dangers
fear,

.

.*

(Accrjed interest

the

more

the payment of. all the annual contributions contracted by the

January 1, 1956. Due January 1, 1958-97. Callable

*

'

position.
If

not

these Bonds. The faith

2%% Bonds

un¬

policies and weaken

our

on

•

Fear

we

the

excessive

an.

*

.

believe

contribute, in

of, .the

The

fighting

showdown.

I

to

City Housing Authority

•

„•

death

postpone- without preventing, a
day of reckoning when we would
have only the sorry choice
be¬
tween capitulation and a military

also,

agrees

of principal and interest

$16,800,000

robust will to victory is piecemeal
surrender. And that in turn would

Excessive

to

unconditionally

payment

"our

to

to

up

that

to

agency,

assure

,

a

equally fin~y

burn

we

face

fact

to

Housing Administration under the authority of the United States 'Housing Act of 1937,

freeze to death."

or

Federal

sufficient

True,

occasions,

civilization would b?i
ished

the

Public

<.

sums

I have empha¬

as

other

on

*

amended

it

universal

way

Housing Administration,

forty annual installments,
of

from

Communism.

might in that

we

Hot

The Public

"[

-

that

t

as

-

part would

except

guarantee

triumph

;

.

our

Secured under the provisions of

<

United States Housing Act of 1937,

'

that

withdrawal
on

nothing,

would

j'l
*

guerrilla "warfare. "

bury you!" Khrushchev

v

>

'

operations, d from

military

diplomacy

prevent

patience
it.

But

fear of war—the kind of fear that




February 7, 1957

Ecctmcn Dill ;n, Unlcn Securities & Co.

F. S. Snifters & Co.

policies

page

8

The Commercial and Financial Chronicle

(672)

Harnischfeger
New

Dealer-Broker Investment

pmston

Madison

Gas

Comments
marine

atomic

Street,

Highlights

of

1956.

British

program,

—

Mutual

Fund, Inc.,
Washington 7, D. C.

W.,

N.

View

Burnliam

power

sub¬

Monthly

investment

Dept.

New

New York
Dividends

C.

Stock

than

More

—

Inc.,

Exchange

consecutive

Decade—Stocks

a

which

have

paid

years—American

Bu.rnham

District

York

Harlem

&

New

Pine

the

on

for

A.

Street,

School

—

108

to

86

Revenue

Co.,

New

the

York

City

N.

Y.

Banks

Manhattan

" -

-

and,
(2)
improving earn¬
temporary de¬
and
(3)
relatively
good
on
earnings and dividends

cline,
value
at

Schley,

100

rates.

current

Radio

a

of

America

possess

these at¬

Corporation

appear to

tributes

and

position

at this

be

such

in

price

a

time.

Pont
same

Co.,

&

issue

1

are

a

Henry Swift Co.

Wall Street,
selected list

Admits Schick, Others

nS>Qpks and Stocks for New Investors.

Lines

Co.—Report—Thomson

&

McKinnon,

11

SAN

Street, New York 5, N. Y.

Norman

Industries, Inc.

H. Hentz &

—

Co.,

Also available

are

Co.,

data

30* Pine

general

partnership in
t he

Warner

on

has

been admitted
to

AVarner-Lambert-r-Data—Seligman, Lubetkin &
t"'; Street, New York 5, N. Y.

FRANCISCO, Calif.—Carl

Scnick

Analysis
Street, New York 4, N. Y.
—

invest¬

-

'

atom—Chase

15,

Utility

60 Beaver

v

Moving Ahead with the Atom—Brochure discussing peacetime
York

growth

an

Oil

States

Wall
Van

&

as

future

indications of

Bonds.

"Gleanings"—Francis I. du
5, N. Y. Also in the

United

Singer

such

dustry position in fields of funda¬
mental

&

market

also possess
(1) strong in¬

and

ings trend after

Corporation—Analysis—Moore
Broadway, New York 5, N. Y.

of Public

1957—Bulletin—Harris, Upham & Co., 120

Makers—"Highlight" No. 32—Troster,
74 Trinity Place, New York 6, N. Y.
of

26

would

Mobil

substantial

a

attributes

Hickey,

&

Ziegler and Company,

Smith

O.

of

Yamaichi Securities

Missile

use

C.

had

have

price correction

Kans.

Sunray-Midcontinenl Oil Company—Analysis—In current issue

Trinity

Broadway, New York 5, N. Y.

New

toward those issues which already

Ariz.

Co.—Bulletin—Rcss, Lyon & Co., Inc., 487
Broadway, New York 13, N. Y.

American

Co., Ltd., Ill Broadway, New York 7, N. Y.
Market Outlook for

County,

Davidson-Vink-

—

Bonds—Analysis—Vilas
4, N. Y.

Bonds—Data—B.

Utilities

La.

Socony
10

Exchange,

Current information

general market trend, and selec¬
tivity continuing of basic impor¬
tance,
I
am
inclined
to
look

Organi¬

York

New York
—

Pima

of

Bulletin

—

y

Incorpo¬

Landry Parish, La. Consolidated School District Bonds—
Circular—Scharff & Jones, Inc., 219 Carondelet Street, New
Orleans 12, La. Also available is a circular on City of Abbe¬

and

Place, New York 6, N. Y.
Japanese Stocks

The Security
I Like Best

:/

Security Build dig, West Bend, Wis.

Also avail¬

70

dividends

Stock

/.*'

Broadway, New York 5, N. Y.
Improvement

2

page

and

Company—Analysis in current issue

Metropolitan Area)

Regis High

1033—

5, N. Y.

for

Corp.

*\

-

from

on

&

City

Broadway,

ville,

Ryan,

•;

Continued

Wall Street,
Kimberly

36

data

Unitronics

Sadter, Inc., Beacon Building,, Wichita 2,

able is current Foreign Letter.

Bonds—Bulletin—Park,

Co.,

are

St.

letter

Company, 15 Broad Street, New York 5, N. Y.
Discount

&

Railroad,

"

Electric

&

100

(Tucson

propulsion, and items on RobeitshawCo., Lindsay Chemical Co., Consolidated
Ltd. and Can-Met Explorations, Ltd. —

Mines,
Development

Atomic

Atomic

ship

Controls

Denison

24)—Includes

Bache

available

Ohio

Miller Manufacturing Co.—Bulletin—De Witt Conklin

parties the following literature:

Franch

on

and

Fulton

30th

(No.

—

Also

&

Financial
Digest"—Loewi & Co.,
rated, 225 East Mason Street, Milwaukee 2, Wis.

zation,

Letter

Y.

v ::

Co.

National

Atomic

N.

"Business

of

will be pleased

that the firms mentioned

send interested

to

Corp.— Data

5,

Baltimore

Knox Corporation—An^ysis—Unlisted Trading Dept., Rm. 707,
Ira Haupt & Co.; 111 Broadway, New York 6, N. Y.

Recommendations & Literature
It /< understood

York

Clark,

•

Thursday, February 7, 1957

.

Bank,
-

•

-

-

.

—Breakdowns

of

Pine

18
-

.

-

-

Street,

&

.

Government

Swasey,

Timken

Roller

.Metals.." V-'-

•

Bearing,

and

American

Machine

ment

" r*.:

firm

-

of

Henry F. Swift
&

Bond

Co., 490 Cal¬

*

^

Portfolios and sources of growth income of 13 New York
City Banks—Laird, Bissell & Meeds, 120 Broadway, New
.

:

'

;

'

i.

j

Continued

*

■

'

ifornia

t

from'page '5.*

York 5, N. Y.

the

used in the National Quotation Bureau Averages, both as to
yield and market performance • over a 13-year period —
National
Quotation-Bureau, Inc;, 46 Front Street, New
York 4, N. Y.
Philadelphia

Bank
Stocks—Comparison' of 11 largest Phila¬
delphia banks—Stroud & Company, Incorporated, 123 South
Broad Street, Philadelphia
9, Pa.
1

Printed Circuit Industry and
Techoijograph Printed Electronics,
lie*—Analysis—Mitchell & ;Cortipany, 120 Broadway, Newt
York 5, N. Y.
•

•

Also

[industries,

went up, some

Significant

Manufacturing Company—Data—Oppenheimer,
& Co., 120f
Broadway, New* York 5, N. Y.
are data on Columbia Gas
System, Inc., North¬
Pacific Railway, Pullman, Inc. and Transamerica
Corp.

ern

Brown

Broeck

Wall
Chain

Co.

Memorandum

—

—

Street, New York 5,

Shearson,

N.

Hammill

&

Co.,

14

Y.

Company—Analysis—Laird, Bissell

&

Meeds,

120

Broadway, New York 5, N. Y.
Chesapeake & Ohio Railway
!

Parker

&

Consolidated Denison Mines Limited—Circular—W.
C. Pitfield
& Co., Inc., 30 Broad
Street; New York 4, N. Y.

Stone,
Dover

120

Zinc

Corp.

—

Memorandum

announcement

in

1955,

but

picked

Roland

Corporation—Analysis—Zuckerman,

Smith

&

Co.,

61

R.

Williston

&

Co.

attitude, the element of

all

Highlights No. 32

merits

of

unfortunately obvious
missile
Small

can

stop

wonder

pocket is wide
the

the

that

another

then

Mgr. for
Kidder, Pea body t Go.

a

office,. 11 Commerce Street, of
Kidder, Peabody & Co., members

un-split

over

the

Dow Chemical would

years,

now

[

carrying the equivalent quotation of $24,165 and pay dividends of
du Pont at $11,334 would disburse $382
each un-split share, Standard Oil of New Jersey at $7,050
would be paying $252, etc.—truly unwieldy units for the chemical
and oil consuming shareholder; and a meaty target.for the labor
agitator.
'
'

of

the

Stock

be

that

open to any

which obstructs at their

airplane,
a

With Palmer,

it's

guided

Franklin

and

at

Street

152-A

under

the

BOSTON,

Mass.

agitation

at

Flaherty

agement of Eugene M. Cohen and

are

Lewis E. Toplitz.

&

now

and
with

our

national

who

can

DEPENDABLE MARKETS

build

Brumsted

and




Rex

E.

Grauel

are

with Thill Securities Corporation,
704 North

Broadway.

Hardy & Co. Will Admit
Benjamin Wetzler to Firm

—

Benjamin

Richard

G.

Francis

Pelosi

N.

Palmer,

Pollacchi

Broad

Wetzler will
in

partner

a

Hardy

Street,

members

of

Exchange,

the

on

&

become

Co.,

30

York

New

City,

York

New

Stock

Feb. 14.

AVAILABLE

Attention N. Y. S. E.
Editor—Reporter

&

CO.

Arbitrager

Analyst—Researcher
avail¬

14 yrs.:

Security Dealers Association

Dow-Jones

Magazine

tion

only.

cial

Teletypes NY 1-376-377-378

&

Park

DEMPSEY-TEGELER & CO.

Wall Street Journal
Barron's

clientele—New York City Loca¬

Trinity Place, New York 6, N. Y.

HAnover 2-2400

He

Co.

(Special to The Financial Chronicle)

Firms

TROSTER, SINGER
74

901

&

guided missile.

Experienced

York

Inc.,

Camp

Zilka, Smither & Co., Inc.

able—Have substantial personal

New

with

16 State Street.

Co.,

brainy birds.

Members:

associated

Co.,

MILWAUKEE, Wis.—Donald D.

Pollacchi

North
man¬

&

Two With Thill Sees.

(Special to The Financial Chronicle)

HEMPSTEAD, L. I., N. Y.—Joseph Faroll & Co. have opened a
office

their

frustration, the rate-making body
the growth of their earnings.

Jos. Faroll Branch

9 9

branch

only

source

direct

become

Walston

formerly

was

.

should instead

has

Langton

is

split,

American

Southwest Washington Street.

But, while the splitting was wholly justified, we see that it
properly followed growth in earnings with their impact on market
price; not as the converse of the split preceding or motivating the
stock's price rise.
•

a

and

(Special to The Financial Chronicle)

.

for

York

PORTLAND, Ore.—Richard

.

The Earnings-Horse and the Split-Cart

it

New

Exchanges.

With Walston & Co.

on

quite in order that splits occur most frequently
among the industrial sector of the market.
The misguided stock¬
holders in utilities, as in American Telephone, who clamor at their

"Missile Makers
Despite

Newark

,

Thus

.

partner.

NEWARK, N. J. — David H.
Kingston
has
been
appointed
manager
of the
Newark, N. J.,

a long term invest¬
company's growth characteristics
—actual or fancied—is rather a chief motivating criterion.
f..
Growth is a highly legitimate reason for splitting; and, in fact,
is sometimes indispensable. If some of the real growth situations

ment

tr.e fundamental source of their
.

general

.Growth—Not Splitting—The Key

y

management
.

apparent

Among today's professional analysts with

,

Broadway, New York 6, N. Y.

Schick

are

Hartley F.
Hutchings and James V. Lawyer.
Henry F. Swift is retiring as a

Scrutiny of the explanations by the serious-experts, including
voluminous year-end .published commentary by the
mutual^
fund managements, of their "reasons for bullishness or bearishrtess
on specific
industries or issues of course reveals no, reference to
the factor of splitting.,

Broadway, New York 5, N. Y.

Printing

in

1956

Carl

nership

the

&

Broadway, New York 6, N. Y.

Second

during

up

to

part-'

,

with

Model,

—

Georgia Pacific Corporation—Bulletin—J.
115

plastics

a

$396 per former share,

Co.—Memorandum—Auchincloss,

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

Consolidated

of Visking Corporation,

general

if.

-

reflection of its imminent merger with Union Carbide.

had been left

Belt

the.action

was

1

,

producer, which performed badly immediately following its split

Allis Chalmers

Vanden

.

: y!

being

admitted

cement, some of the individual split issues ',

as

down.

•

Also available

Stock

Exchange.
certain

f

o

Pacific

Coast

Over-the-Counter Index—Folder showing an
up-to-date- com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
/

Street,

members

Box

C 26, Commer¬

Financial

Chronicle,

Place, New York

7.

Wall

25

EXCELLENT
Box

C

28,

Chronicle,
N. Y.

7,

Ticker

of

Street

REFERENCES

Commercial & Financial
Park Place, New York

25

Number 5610

185

Volume

.

.

11^
ft
III-iw —ne>v deal >yas set up for °Peration f0r the second time in five years, ownership of oil in the ground
ISflFTt*lS Ivall 1 w WlOIlQ of the Iranian full by BP. 'origi- ence on oil supply in an area of the They're payingcents a barrel for
lie
properties, First, serious qudstions about'depend- costing five
barrel.
a
nally owned in
$3:17 a
wwm

Iran

U. COBLEIGII

By IRA

to

Enterprise Economist

oil

world's

tankers'

reserves

10
years, beginning this Jan. 1; $70
million altogether.
Then the
equity in the property was spread

company

deadweight

2,100,000

(over

Petroleum Co.,

agreed to pay an indemnity
for losses it (BP) had suf-

BP

fered; $7 million per year for

that owns about 20%
and the world's largest fleet of

of the

A current consideration

the

tons),

The

around

British

40%,

keeping

Ltd.

the

bit

a

other

and

60%

Pete

British

with

parceling

among

a

out

consort-

'

ium including Royal Dutch, Compaignie Francaise des Petroles,
and 14 American companies. . In
consideration for its giving up of
around the world, when the Brit- 60% of this Iranian property, BP

stockholder (56%). ./This came
is
a
about quite early, in BP history,
politics, wide swings in fortune, The company, in 1912, was having
vast magnitude
and profitability quite a time selling/its output
*

,

The

story of British Petroleum
saga
of vision, adventure,

in

*

.

panoram-

a

ic corporate

which T_t

A0™ n
and
promised 16%

cash,
in

royalty un¬

der

conces¬

a

giving him

the right to ex¬
plore, develop, and produce oil
throughout the Persian Empire.
The

at

materialize

not

did

oil

fact it was 1908 before
•
u
•
Masjid-I-Sulaiman field, pioin

once;

w/r

the

-.j

i

o

t

producer in the Middle East,
In the meantime,
had become the

neer

was

concession

property of Burmah Oil Co. Then
it was switched to a newly formed
due

in

became

encountered

fact, for all

to

the

much of

in

Thp worid demand for nil sluvwc

the past, we move

question
a

for it under a Persian rug (or
rugged Persians?)
...

as

just

to

how

slightest sign of abating; in

free world,

discount the geography

«.

life

business

of

BP

may

again

times earning

strong

nor/locating
to keep pace

with the indicated rising curve

demand.
and

the

are

current quotation about 1814. The
present dividend to American

i-

today,
reserves

ing enough
enough new

of BP, with 98% of its petroleum
coming from the Middle East, deserves. The shares have ranged
1955/6 between 9% and 25% with

-

the countries in the
we're neither produc¬

in

balance

largest
the

producing wells

Middle

extremely3 modest major,British Administration, the
oil equity around. If
in
new

ratio.
Consider, too, the magnitude of
British Petroleum.
Here, within

have been due in

concert

with

the

United'Nations,

instead

counted by Mid-Eastern uncer-

After the
and

much

political

as

desert of der-

more than 35%, and requiring find an equity assaying so high tainties, might be a
1,500 miles more of sea voyage for per share in oil? That converts at ricks that would; blossom
each tanker. Further, this raised, the present price for the stock to rose."
,
; .

jugging of Mossadegh
top level diplomacy,
well as economic, a

Along the way/too, the enter¬
prise
branched
out
and
went
for oil elsewhere in the
Middle East through a 23%% in¬
terest
in Iraq Petroleum Co.', a

This is under
a

sion, and

an

offer to buy,

the

has

.

•

- -

1

'

.

'

$19,903,300

British

of
in

Petroleum

1956

accounting

-

:■

Fuel and Iron
Series A

expanding Canadian pro--,
through Triad Oil, and

duction

<•

NEW ISSUE

roughly for 20% of total produc¬
tion, Kuwait 60%, Iraq 17% and
Quatar 3%. To these, add, for the
future,

any

These areas
virtually the entire

Iran

.

of

of Quatar.

for

production
with

offering of these securities for sale, or as an offer to buy, or as
of such securities. The offer is made only by means of the Prospectus. '
"
U * '

circumstances to be construed as an

.

in the Kuwait conces- '
full concession in the

a

Sheikdom
account

Oil

(Gulf

interest

no

solicitation

hunting

5#%

Sinking Fund Debentures, 4%%,
'

due

Corporation

Convertible,

January 31, 1977

exploration and development proj¬
in

ects

and
the

Trinidad, East Africa

Nigeria,

and

round

you

out

The

Debentures

are

convertible into shares of Common Stock

January 30, 1967 and $35 thereafter

picture.
Once

oil

the

gushing

came

up

from these lush oriental sands,

ment,

in both

cases,

the Debentures being taken at par.

The

A 250-mile

on

pipeline from the first
Iranian producing field was run
to

Abadan
the

side

northern

the

on

Persian

world's

Gulf, where the
refinery (550,000

largest

barrels

a

stands.

Pipelines

throughput)

day

until

subject to adjust¬
„
y"

outstanding Common Stock of record at the dose of business
above Series A Debentures on the basis of $100 in principal
Stock then held of record. The transferable warrants evi¬
3:30 P.M., Eastern Standard Time, on February 20, 1957.

Corporation is offering to the holders of its
February 5, 1957, rights to subscribe for the

amount

of Debentures for each 17 shares of Common

dencing such rights expire at

now

also built

were

Subscription Price 100%

in Iraq

delivering the oil to ports
Syria, Lebanon and on the

in

of the Corporation at $30 per share

until January 30, 1977, unless redeemed earlier,

its

transportation required attention.

of

Persian Gulf.

The

tioned

oil

already been men¬
2,100,000 in dead¬

over

—

tonnage

weight

this

to-take

tankers

have

away

and

owned

more

being built; plus a chartered fleet
of
2V2 'million
additional .tons.
The owned boats have been writ¬
down

ten

to

roughly $15

sizable

a

asset,

servatively stated, in

our

report

addition

In

fineries.

at Abadan,

the

British
each

there

Isles,

in

BP facili¬

on

mention

should

we

one

the

the Deben¬
Prospectus.

States where the
laws thereof„

Copies of the Prospectus may he obtained from the undersigned only in such
undersigned may legally offer these Securities in compliance with the securities

Allen 8C

Company

the

to

two

big

three on

are

in

Belguim,

owned and

wholly

owned

and

Petroleum

Carl M. Loeb, Rhoades 8C Co.

Ladenburg, Thalmann 8C Co.

Germany,

some, are

Wertheim 8C Co.

Reynolds dC Co.

E. F. Hutton 8C Company

,

Bache 8C Co.

Francis I. duPont & Co.

A. G. Becker 8C Co.
Incorporated

Auchincloss, Parker 8C Redpath

Totally,

British

Salomon Bros. 8C Hutzler

France,

operated jointly with
however,
the

others.

Goldman, Sachs 8C Co.

Lehman Brothers

re¬

Italy and Australia; and at Aden,
Haifa and Kuwait. Some of these
are

expiration of the Warrants, the Underwriters may offer
prices and pursuant to the terms and conditions set forth in the

,

Next in

one

the

most con¬
this tanker

fleet.

ties,

at

and after the

to

tures

costs

ton.

per

quite

of

Prior

ton, as against new
today of $250So you see there's

a

construction

$300

value

book

a

this

790,000

BP

is

in

all

about

B/D.
any

consideration

is the fact that the British

Government

Sutro Bros. 8C Co.
February 6, 1957

Important to
of

equity

capacity

refining

is

the

controlling




where

shares might 'well be

British Petroleum Co. Ltd.

other 50% )

East

regarded as.the most Undervalued

The

course

of

The richest stores of oil

Persian Oil Co.,

Anglo

company,

which

not the

crude oil in Texas today. Is five
cents a barrel too high a price to
pay

part/to .its Brit¬
dustrial brass can get ia bit stuffy
and
ish 'proprietorship. - On .Oct/ 31,
in
closer liaison with
the
and stubborn at. times and there is
1956, the Suez Canal was closed a single private corporation, are United States, buttressed by our
some feeling that British intransi¬
controlled estimated oil reserves
and on Nov. 3, the pipeline into
advanced
technology in fission
gence was at least partly to blame
Syria was sabotaged. With Kuwait greater than those of the entire
for the conditions which led up to
and Iran relying on the Suez route United States. These reserves have
and long range missiles—if these
the nationalization of BP proper¬
for tanker delivery of oil to Eubeen conservatively estimated at factors can reopen Suez, keep the
ties in Iran by that foxy fanatic,
rope, and Iraq using the Syrian 35 billion barrels! (Some estimates peace and checkmate Communism,
Mossadegh, in 1951. This was a
pipeline, these Egyptian-inspired have run as high an 42 billion *
terrific blow to BP fortunes as it
transportation blockages dealt a barrels.) They work out to around then British Petroleum,
captured about three-quarters of ,
.
_
... ,
_ ,
,
350
barrels for every share of being
an
equity heavily disthe Bp pr0(juction and refining beavy blow to British Pete, reduc*
capacity existing at that time.
overseas oil deliveries by British Pete. Where else can you

brought in.

the

world where political disturbance
has become virtually epidemic.
And
how,
having
bri ef1y
sketched the history of this vast
and unique enterprise, and outlined some of the troubles it has

still holds. (Burmah Oil million; so you see the Consortium company has good earning power, Petroleum

unmixed blessing/ The'.British ;in-

thousand-in

Ira U. Coblclsh

received from this Consortium $90

ish Admiralty, no doubt, perceiv-

of

Shah

the

sion

9

' HI.

BM11 '

•13 HllllOlt

of

(673)

The Commercial end Financial Chronicle

.

Walston & Co., Inc.

Hirsch & Co.

like the

e?

no

The Commercial and Financial Chronicle

(674)

fact

Make Haste

Slowly

going

&- Thurlow,

New York

City

military threat is removed, Mr. Thurlow concludes,
business activity is not subject to serious downward adjust¬
in the

deflationary solution to

a

our

present overall crisis."

such stock price influencing

examining

elements

After

made

on
the

now

writer has expressed a deepening

that

conviction

<country,

our

economy,

our

world, and possibly

our

con-

oven

our

in

the

eepts

of
life
passing

are

t

hrough

logical

other

cost

will be

what

30

sell

lake not

to

trifles,

B. K. Thurlow

the forest for the

see

importance

also it is unwise to
tower attitude,

so

ivory

an

considering nothing but the grand
The

currents in the affair's of men.

second

provides

approach

vast

pleasure to the philosophical mind,
but is usually a poor way to fatten
one's

do

a^^amntlv
policy with these

market

steels

would

•

Since the end of World

has

States

The

War II,

friends

ized

long lived

and

allies

selfless
in re¬
more civil¬
have

who

the principle of

ex¬

acting an eye for an eye (per¬
haps because they have not been
rich

enough to afford to do other¬

wise), such behavior has been be¬

wildering and not unnaturally has
roused the deepest suspicions, as

generally happens when the re¬
cipient of a favor dous not trust
understand

or

donor.

the

motives of the

We have made many

iakes

in

foreign

our

misand

policy

have been sharply criticized, sometimes rightly, sometimes with

shocking cynicism.
At any

government

•

rate the net effect after

is that we seem to be
entering a sort of spiritual, moral
jiOd
diplomatic
adolescence,
in
which we are coming to feel in¬
creasingly isolated from the world
must

increasingly aware that
inevitably fight for our

we

ex¬

istence against the opposing power
of Communism. Whether the battie will be

litical.

or

fought by military,

economic action

we

the chips are down the re¬
cipients
cf
our
past
generosity
us

be

any

willing (or able)
substantial help.
a,t

Governmental
It

is

mind

rey's comments
budget

to

give

Secretary Humphon

the President's

touched

message

deep
chord in American
feeling and are
likely to accelerate a process of

reaction

a

Is it not,

pean

could

lent

inflation

just

Why must
just

Euro-

any

tell you, that

much

as

as

viru-

a

depression

means

strong deflation?
expect every future

as a

we

in

business

to

occur

they did in the 1930's?

as

gories

There
over

a

Loanable

olvri

flation.
a

been

worried

at

Reserve

has

the

evidence

for

that the Treasury was
the

the Federal
dabbling with

way

been

supply. We have al¬
ready expressed some of our mis¬
givings on this score (see Com¬
money

mercial

and

Financial

1957), and have discovered
from subsequent discussions of the

subject that there

intelligent
vinced

people

that

in

do

who

the

accomplished

early

number of

are a

are

Fed

what

it

has
set

that

1955,

con¬

it

strain inflation only by

not

out
can

to
re¬

causing

about

to

be

forced

to

supply of loanable funds (to
satisfy new and increasing de¬
mands

from

military,

and

of

none
as

the

Government, the

municipal

which

be

can

business,, for

can

This

expand).

seems more

line

cogent to

projects,

punished,

wanting to
of reasoning
me

than the

vanid

conformity of those who
still cherish the dogma of monev-

infallibility

manager

Stock
The

Market

that

suggest
at

least,

the

is

we

brass mills
-

make

automobiles

and

doubt.

come

to

Since

materials,

approaching

turning
1955

Most

point,

confidence

people

have

the conclusion that stock

prices

are

too

point

to

the

high

it

there

(and,, if they

traditional

"blue

chips," the argument is convincing).

orders)

tainly
of

more

no

this

cars

the

be

automobile

our

government




is

would

steel

cer¬

holders

but

is

equities

ning

for

stocks,

reason

ma¬

may

"than'5.000.000

depressing

valid

raw

industrv

This

year.

it

to

for

answers

to

this

question: (l) Many stocks may in

which

meaning'

ing prices. Indeed there is strong
evidence that the recent decline in
* the

market

move"

has

been

which

in

the

a' "false

weakest

is¬

have been precisely those the
investor f^m'l.d
have

sues

It

is

of

one

of

buying, and in which, speak¬
broadly, many holders

more

securities

their

talist

economic

automobile

whose

judgment

calmer moments

old

in¬

saws,

theory,

business

is

that
the

the

back¬

have

we

^

a

"business

reces-

The on^ thin=

wrong with

K **

automobile

.

production

declined

over

1956

business

was

and

A

prosperous.

units

this

14%

25%

highly

decline of
would

year

m

800,009

be

about

wouH

and

represent a lo^s
of about $1.5 billion, in s°les. This
-woul<->

be

than

mote

offset

by

have

in

been

just;

They

as

possibly

about

were

,

.

Inflationary

be

to

proved right.

Psychology

in

phenomenon is

a

stock

there

are

confidence

of those

unhinge the

who

are

cor¬

rect but who have not the
courage

of

their, convictions.

If

we

are

example of the above theory.
And if this

the

S4

b'llion

increase

construction

ket,, .what,.will
.prices?

First

in

expected

Outlook

alternatives

exist

in

not

may

buy gold.

outlook

viewed

seems

either

less

optimistically

or

these

minor

try's
to

to

econo^i**-

withuot

up

a

coun¬

problem

sufficient

destroy
outside

Com

is

the

i

country

see a

chne in business activity.

There¬

find

can

no

it

seems

who

Depression-Doubters

growing dangers of
yet still feels impelled

inflation hedge stocks be¬
- is
worried
about The

he

cause

level

the

of

the

general

overall

outlook.

and

market

business

term

near

this

At

critical

stage of
political devel¬

economic and

our

the investor

the

sees

sell

questions which

proper to ask

inflation,
to

the

are

opment there is no form of invest¬
ment

in

(including cash) which does

hold

the

that
be

substantial
of

event

risk

loss

of

mistaken

judg¬

The decision must be made

what contingency protec¬
principally

,needpd?.

and

decisiop, fo.be effective," must

implemented

sist°nt

course

action.

with

con-

tone

If the

ful

that

on

other

of

Commodities

sub¬

are

of

investment

investor, after care¬
consideration, comes to the

conclusion

economy

wise

that

is

this

sell

time to

really

a

inflation

off his

ject to controls and present physi¬
cal problems of storage etc. Real

fashioned

estate

of course. seU: but. if he has doubts

has

b^en

in

successful

the

past, but ultimately is valuable
only insofar as it is useful.; After

huge boom which has lasted 16
it

years,

would

be

dangerous

generalize.
This then leaves
here

even

stocks,

common

the

sharply

narrowed.

margin

squeeze,'

choice

" The

inflation.

be able to

must

A good

increase its

hedge

of
a

reason

one

be

must

slowly."

haste

Gray Y.-P.

Of A. M. Kidder Co.
Election of Arthur Gray, Jr., as

Vice-President

Co., Inc.,

Wall

1

City, members

New York

Street,
of

&

of

Director

and

Kidder

M.

A.

New

the

York

Stock

Exchange,
has been
nounced

warv

manufacturing companies with
high ra+io of labor and material

costs

"make

earn¬

ing power in proportion with any
fall in the value of the currency.
For this

likely

is

history

how

to

Arthur

which

prosperity provides little protec¬
an

prepare for an
"old
depression," he should,

just

advised

concerned

so

and

repeat itself, he might be ,jvell

to

is

during the past year, is an infla¬
tionary
phenomenon.
Profitless
tion in

to

as

profit

about

investors have been

hed^s

to

to finished

Mrs.

an¬

by

Charles

Ulrick

Bay,

President

and

product, particu¬
Chairman
of
larly when that finished product
the Board, Mr.
may meet direct consumer resist-,
One

must

also

careful

be

industries,

regulated

faster

rise

may

like

than

they

the
can

rate increases.

secure

G

r

ay

leaves

number

of

with
L

o e

In

vital
a

to

minor

costs,
cut

or

a

relatively
in

small

theoretically desir¬
this category we should

buyer's

proportion

business

1945

to

has
Arthur
an

Gray, Jr.

of

his

motion

picture

three

past

Chairman

producer

He

years.

of

Special

National

Citizens

in

and

1952,

Vice-Chairman
National

Eisenhower

1956

Citizens

served

Finance

of

as

for

Events

for

in

the

for

served

for

as

for

Eisenhower.

but

With J. M. Dain

total

"(b) enable the buver to
<Special to The Financial Chronicle)

his

or

predominantly, de¬

MINNEAPOLIS,
lock

Whitney,

nected

companies which sell services

rather than goods and whose costs
do not absorb a material propor¬
tion

h n,
Co.

and

which

rived from the U. S. Government;
(4)

&

b

from

u

independent

is

the

K

been

Select

industries

investment
able.

to

w a s

associated

1953

wholly,

substantial de-

investor

cur¬

manufacturing costs; (3)
companies whose business is

military attack is removed,, it

is difficult to

These

tion .is"

the

threat

those few stocks

cash?

ment.

s m

striking

m. u n

heho, should

Until

of

are

importance since ttm
basic

build

foree

considerations

preference to all

worth, or, put-an¬
how high can a stock

Advises

of

our

in

an

ering the overwhelming influence
countries*.

which

be

way,

against

pessimistically.. The appliance in¬ include: (1) raw materials pro¬
dustry is obviously having trouble ducers whose products enjoy world
and
the
housing
industry will markets: (2) manufacturing com¬
languish until Congress outs a panies which sell, to other manu¬
realistic rate ceiling op GI loans, facturers, products Which (a) are
but

other

what

Foreign

the

to

idea

an

are

undulv risky, consid¬

rency seems

This

definite,

to

stock

this

investor

brings

'of

stocks

to

must

practical inflation hedges."'We

as

*

With regard to other industries

the

individual

This

others, what

ask

happen

one

Issues
Future

the

mar¬

railroads and. utilities whose costs

tion

few

not

inflationary psychol¬

takes hold of the stock

ogy

a

all

-

year," namely scarcity value.
investor preference inclines to

If

common

behavior, as any
should know.
Indeed

tion in the market is to

since

last

his

those who hold that the
benefit of a secondary reac¬

sole

is

during
the
late
of the "growth stock" fad

stages

market

speculator

'

there

groups

prevalent

was

Hedges
Such

airlines

as

other suitable substitute to protect

and

hv the

men¬

of group

selection,

stress.

•

sell when

,

of

estimated

of

criteria

likely

market,

$2 billion increase in exoenditures

military alone,.not to

machine

Aircrafts

companies obviously cannot suit
every preference as to risk, size,
qualitv of management or other

positions in the

ance.

a

and
(b).

example

these

scarcity

a

but

bone of the national economy/ If
its
declines,
according
to
this
wisdom, ?o does evervthing else,
and

Within

correct, Rave suddenly, and irra¬
tionally as it Were, doubted their
past ,wisdom and
undone
their

a.

herited from the folklore of capi¬

(a)
of

and fire insurance companies.

consideration

a

the
begin¬

the

prime

may

a

jettisoning

which were
win such favor only
few weeks ago?

of

that

new

market

would be suggested by recent fall¬

to

raw

that

assume

judging from their

far?
two

without

is

necessity arise.

are

impossible

this

think they have already risen too
There

is

a
sharp pickup
spring (which the
companies'themselves do not ex-

in interest

The 1957 budget is $72
Such numbers are mean-

was

„

must

one

The

in the stock market,

be

Detroit

\vith the

,

„

orders.

of

companies
the

sified lines of business

on

this year.

striking enough to

may

be¬

he,-steel and
relative to
roiativp to automotive
automotive

^ -?1

Direction

psychological

is

from

strangely
„

tool
are

meaning, but not the

by the barrage of opti¬

couple

unless

economy

One

forecasts

present conjunction of cir¬

cumstances

time.

which

a

increase

in the

spot

sore

present

mistic

deflationarv1'money' nanieThat \5"'sio 11
is

three cate¬

same

re¬

group

take
stock

gories,, but since most people don't
about
to
take
off
on
another
really believe this, let us surveyflight of inflationary psychology,
briefly the business outlook.
the
sharp
reactions
during the
Automobile production seems to
past year will serve as a textbook

Chronicle.

Jan. 3,

or

The first three cate¬

function of the

produce

has

year

the

conclusion that they
contributing toward » in¬
Business activity is really

all

terial

Funds

whether

inflationary

reaching
are

example

an

second

rail¬
equipment manufacturers are

road

three while group four would in¬
clude companies with such diver¬

down

have already discussed,

we

nect.
More

ap¬

Each of

comes

of

be

already well

which

ingless to most people until thev
reflect

deflationary.

wildered

has never been
looked on as deflationary by anyone, except possibly some of the
sellers of securities during the re-

to

How, they argue, cau stock
prices rise further when peoole

underway.
billion.

is

the

In

serves.

producers and

unexploited

Secretary Humphrey

Each, related

market,

question

ment

has ebbed and flowed in a vacilla ting
atmosphere of confusion

-xi

Leviathan

the

to

solution

the

spending

others.

quarter.

a

stock

the

Since September

important to bear this in

because

stop

po¬

when

and

the

discussed

or

with

Reserve and

emotional unsettlement of the past

be

don't

know, but no one except the poli¬
ticians,
honestly believes that

will

cannot

the

many years,

and

stop

demon-

unparalleled

on

to

are

to the intellectual and

way

at

international goodwill and
corded history. To our

have

we

these elements has contributed in
some

have

we

neutral

inflationary
in
their
implications; then the
repeated warnings of the Federal

ing

that

many

that all contribut¬

assume

we

elements
either

ests between actual

companies

been

to Consider

assume

are

spending, except possibly in the
area
of foreign aid.
But govern-

unmotivated

of

degree

leadership

"because

spending money and if it stopped
spending money that meant there
would be no military program and
if we had a depression, the steel
stocks
were
going to collapse."

dislocation

a

and

did, and

a

acely interested.
United

is all well

as many

aircrafts

and

cent past.

the

It

—there

year

Humphrey's

us

If

ing
are

j

deflation¬

a

ary solution to our present overall
crisis.

intelligent

proaching, if not at, the crisis we
have observed in so many of its
aspects: foreign policy, military
spending,
money
policy,
stock
market opinion, industrial activity

to

Mr.

mean.

pocketbookn At a time like
this, however, it is a mistake not
to see how the larger background
can affect the smaller (financial)
picture in which we are immedi-

strated

depression

a

^VJ^bhi ey^ said either the
we
have
depression or

trees and attach undue

assume

what

government

of

to

on

powerful

known,
Secretary's

ever

the

bring

i
would

mis-

a

to

remarks

ago.

years

/is it is

by

300 years ago

most

in

good to rush out,

differ
those

gov¬

conjured

over

and

threatens

But

condi¬

tions
from

richest

to¬

day's

leviathan

four

"That'll make your hair curl."

from

as

size
The

Let

for

$2,200

in the process of devouring

now

words

they are

i.oday

of

family (average
people) in the country.

and

dif¬

as

an

every

Which "things"
ferent

away
annual

country the world has

of

side

of 1953.

summer

forecasts should restrain those

at

the

sis, a turning
point, on the

and

1946

the national wealth

is

cri¬

of

spring

the

business

who think it is easy.

draining

Thomas Hobbes

a mo¬

mentous

serious

to

Th<* results of Touting

to "make haste slowly."

ernmental

:

;

whole

a

Witness

error.

Elements

months

several

For

as

subject

are

bad business in the

present general market activity and near term business outlook.
Advises those who have doubts about an "old fashioned

depression" coming

stocks

forecasts of good

correct

impelled to sell inflation-hedge stocks because of

feel

yet

then

even

psychological

the growing dangers of inflation and

see

expected to influence

cheap. Absolute
are difficult,

fully priced. Value judg¬
ments arising from predictions of
the future are only as good as
the
predictions
themselves, and

policy, Federal spending, stock market psychology, industrial
activity and forecasting usefulness, the Wall Street analyst
examines
the stock market's turn-about action, and
the
dilemma of those who

look

value

when

make

to

which

in retrospect

may seem

appear

foreign

as

year

stocks

judgments'on

future and cannot be expected to influence

near

of

to have been very

Unless

ment

A

highs for fore, the writer concludes that
In The
first
group
iron
and
may^even; business activity is not subject to, steels; Coppers, and oils iook like
issues
are
serious downward adjustment in the'most attractive
industries, and
from now the near future and cannot be one could well divide one's inter¬
•

and

other

(2)

high today

their

come

while

up.

number

a

Osborne

made

time-to

decline

By BRADBURY K. TIIURLOW
Partner,

have

some

Thursday, February 7, 1957

of its

revenues.'

•"

pany,

He

with

J.

Jr.
M.

Minn.—Whee-

is

now

Dain

&

con¬

Com¬

Inc., 110 South Sixth Street.

was

formerly

with

Allen

C.

Ewing & Co. of Jacksonville, Fla.

Volume

5610

Number

185

Continued

from first

:

.

The Commercial and Financial Chronicle

.

(675)

into

page

as

the

is

Here

of

dreams

its inevitable

a

Secretary Humphrey

consequences.

has

once—and I think X

At least

sign of inflation is

the

cost

of

made

another

But

living.

expressions
period of 30

same

flation
that

"we

in

are

outmoded."

that

you

I

has

Out

I

good deal of prog¬

a

made.

been

of

will

There

save

which

of

things

financial

government

to

as

operations

people

our

snould

First.

spending

is

The
been

financed

loans.

and

spending

And

of

the

mated

itures

of

total

during

these

the

last

; Second.

should
has to

levies

be

appear
other

also

with

"

Third.
this

kind

•-

The act

The

parts.

the

bill pro¬

was

passed

was

divided

ttje

Two parts were

House and are .now

key part, however, was

deleted in the House.

Senator Kennedy's

of

Communist

But

legislation

.

has

Again under

leadership, this

been

introduced

our

need

we

i.n t

look

mil¬
a

the

o

of defense;-

would show, as a
are

burden

a

that they

unification

whole, that they
the

on

taxpayer and
deprive the government

service

>

Beyond

prise;
made

on

.common-use

the

of

en¬

of taxes that would be paid on the

effective

there

is

the

proposed

,we

is

business

State or local; few of
them pay interest on government
capital and still fewer amortize
this capital. Any strict accounting

and

weapons

of

private

by

enter-

Some

fyeadway is being
getting rid of them but
still a long way to go.

business service of the four mili¬

$2 billion

a

saving of

a

there

is still

these

was

long

a

,

I

activities

common-use

of the great

one

to go.

way

that unification

you

hopes of the

Congress when it enacted the Uni¬
fication of the Defense Services.
Civil

The

•

There

-

there

is

The

saved-

another

annually—that
num,

three
a

or

whiph

of dollars

turnover

Service is about

in

And

now

I will disclose

be

to

our

Civil

500,000 employees
is 25%
per ■ an¬

four times the

nor¬

well-conducted business.

by 200,000, that alone

produce

saving

a

qf

over

$5 billion a year.
Another
comes

cause

are

employees.
But
important opposition is

government

pressure

who

groups

among our people.

this

and

to

women

attract

turnover

and

hold

who have devel¬

oped unusual administrative abili¬
ties.

With inadequate pay

executive

skill

and

general
Mr.

ner.

ard,

the

for top
uncer¬

as

ated

Shep¬
has

with

since

for¬

was

merly

Secy.-

the
the

Perkin-Elmer

Corp., Norwalk, Conn.,

operate

and

Many of their

that

prior to
was

asso¬

Lehman

Others

of

required

as

them

operate

law.

strenu¬

Senators and Congress¬
men
and the public in the field.
There are probably more than a
on

thousand of these pressure groups,

working * day and night, to get
what they call "theirs." So far as
registered

a

name

lobbyists

among

whose

is to decrease public ex¬
penditures. I know of only two
private organizations in Washing¬
ton working to reduce expenses

purpose

I

&

Payson

by

lobbyists

and

Brothers.

is

He

a

movement.

Fourth.

Mass.; C.

Inc.,

Tube

Laboratory, Inc., Boston, Mass.

taxes.

suggest to

you

people that each of

yourself
long to

as

to

the American
you

whether

you

any pressure, group

for Federal

spending. If

Gardner With Continental

examine

asking

you

(Special to The Financial Chronic!*)

be¬

value

safety and future peace
of
mind, just resign from it —
and do it loudly.
♦

DENVER, Colo.—Fred T. Garner
has

been

added

Continental

tainty

of.: promotions,

employees

become

the

our

best

easy

cruits of private business.

re¬

In con¬

;

However,- despite

the

pressure

A.

their

Jonnson

Building.

vestment

business

local

......

They should also real¬

savings

insufficient

are

to

finance the needs of

growing pri¬
vate enterprise to provide 1,500,000 new jobs each
year,
and to
provide
homes
for
the
new
-couples.
This is thwarting prog¬
itself.

ress

interest

Incidentally the rise in
is

rates

indication

an

of

inflation.

.'

Fifth.

They should realize that

with combined

Federal, state and

local taxes, we are a long way on
the road to socializing the incobne
of the

of

people.

Moreover, the form
is making new in¬
enterprise most difficult

these

taxes

dividual
and is
sell

driving small businesses to

out

to

big business.

And the

government is engaged in a host
of businesses in competition witu

•

private enterprise.
The

spirit

doubt

He

ena.

action

Karl

of

rejoices

recommended

the

as

Marx

these

at

road

some

such

But, lest I be misunderstood
to

expenditures,

no

phenom¬

Socialism.

to

let

Price
as

101]/2
% and Accrued Interest

repeat

me

what I have said many times over
the

The

years.

should

ment

and

public

the

people

than

some

have you
Sixth.

are

pressure

less

realize

have

every

I
people

they

cannot

and

public
their

-social

improvement

Copies of the Prospectus
such

may

be obtained in

any

State in which this announcement is circulated front only

of the underwriters, including the undersigned, as may lawfully offer these securities in such State«

thern

would

groups

American
that

by

govern¬

of

think.
The

must

.works

which

attained

their local

or

There

ments.

business

improvements
otherwise

be

Govern¬
only

and

competitive

undertake,
•cannot

Federal

undertake

of




Merrill

the

staff

of

Inc.,

C.

Lynch, Pierce, Fenner & Beane

Mr. Garner

previously conducted his own in¬

levies,are tak¬
much from the people that

so

to

Investments,

your own

ize that these total

ing

Steel Ball Co.,

G. S. Laboratories
Stamford, Conn.; Vacuum
Products Co., Inc., Oceanside,
Calif., Radiation Applica¬
tions, Inc., New York, N. Y.; and
Interference Testing and Research

ton,

spending and the levies which it
requires has some part in ihis in¬
flation

Shepard

Hartford, Conn, and is a director
of Trans-Sonics, Inc. of Burling¬

bil¬

and

Shepard

Vice-President and direc¬

tor of the Hartford

•

Federal

Mr.

specializes in financing electronic
and
instrumentation companies,

They need to realize that

enormous

Hardie

W.

with

are

$103

,

associ¬

ciated

ously

Shepard has been

a

part¬

who

been

register

from the failure of govern¬
service

ment

of

Hardie

admitted

director of the

They

the

training to a new
If this turnover could

a year s

be reduced

that W.

Treasurer and

itures.

I know there is not

would

&. Trask, 748 Madison
Avenue,'
New York, N. Y., has announced

wasteful expend¬
opposed by some

unnecessary and

most

as

are

son

mostly responsible in these

to

employee.

you

far

Admits New Partner

1954,

to

so

forces

The venture capital firm of
Pay-

Trask

'

who is

It costs about $3,000 to process and

give

This

that

Payson & Trask

of

in

area

for

add

economic

the march of inflation.

nanfes are on the Federal

Service

billions

are

Responsible

Spending and Taxes?

Some ad¬

year.

mirable steps have been taken by
the Defense
Department — but

might remind

Who Is

.

I

may

internal

Federal,

same

that

multitude

a

progress on

recommenda—

concerned, I have no fear of a
serious depression—if we can
stop

some

levies

about

at

"

law.

people

under

or

guise, and these

estimated

lion.

passed by
.

spending

some

Gen¬

of

leadership of

these reforms

into three

could

The Federal Government

making

Commission's

tions.
And

Government in Business

abandonment of obsolete methods

,.men

people, whether they

taxes

as

this

that

met

the

on

American

The

realize

the

of

must maintain

groups we are

the

our

\

strength.

mal of

Controller
Director

Under the

last session.

calendar
'

the

the

very

proposed has
by
President

unanimously by the Senate in the

re¬

expend¬

at over $103 billion.

year

and

viding

esti¬

have

■

men.

Senator John Kennedy, a

must take

Various

institutions

-

lost

has

purse—the

remedy we
supported

Budget.

the

local

and

we

vision.

our

sponsible

is

there

which

eral

guarantees

state

our

governments

within

by

Congress

the

Eisenhower,

And there is indirect spending on

projects

the

of

foundation of free

on

trust funds.

some

on

only

Federal

control

various governmentally-conducted

pensions and

face

we

soul-searching

of

priations,

spending is much larger than tne
figures
in
the
annual
Federal
There

time

expenditures of the govern¬
ment
really are.
And tor
this
reason, and the continuing appro¬

The Federal Government

Budget.

expenditures

this

at

nual

be

fully awake.

more

further' such

budgeting and ac¬
counting is not adapted to these
enormous
expenditures.
Two
things have resulted.- No one to¬
day can tell what the actual an¬

Awake

several

are

of

scores

mention

Our

More

sup¬

Budgeting and Accounting

The American People Need to
Be

has

four.

curlers.

hair

Congress

control it.

the

In

functions

With the

ap¬

•

ex¬

Defense

itary

necessary

opportunities to

unless we curb inflation
its way up, Old Man Economic
Haw will return with a full equip¬
economy,

of

the

•

-

threat,

Proposals

on

ment

-

over

ress

partially free

a

and

year

.

Commission

proposals.

has

enterprises
in competition with
private business. As a whole, they
pay
microscopic
taxes — either

the

just suggest to

in

even

,

proved our

left

are

by* dead wood.

Eisenhower

gaged in

tary departments with

Congress,

to

President

further, the country and the Con¬
gress could then know what the
government
really spends
each

port of President. Eisenhower and

era"; that "the old economic laws
are

*

.

pf the government.

ago—
economic

years

new

a

of

order

multitude of proposals for

a

government

only under¬
in

.

[Hoover]

in

services

many

administered

be

to

themselves

really

should

injure any

or

in the in¬

as

de¬

reducing the cost of government.
We have not proposed to abolish

sign is the temperament of some
Again you hear

of our economists.

the

Our

.

prices, wages, and

to

monstrous

a

ventures

Our

The obvious
the advance of

have

we

from

urgency.

signs.

in

danger.

we

such

their

detect the

can

where

ourselves

sequence,

vigorously, for
there
are
savings estimated at
over
$3 billion to be had.
And

especially

once,

take

curled

been

already

at

international

pression that will curl your hair."
Mine

world

fend

says mat unless we cnange some
of our ways, we will see "a de¬

all

Senators

spot for the Citizens

a

reform

press

And Some Reforms
agony of

48

Committee and the other agencies

Inflation, Spending, Taxes
through the

Senate with

sponsors.

11

Kuhn, Loeb & Co.

in Denver.

12

The Commercial and Financial Chronicle

(676)

scious of their brains and its

Greater Brain Utilization

,

Then

facing every city and town to/day. (1) High-

are

from existing

for

increased.

that', for
schools,

ing

in

there is

get

new.

'and

shortage

a

The good women

school.

of

I,; however,

am

the training that

con-

Almost

tion

the

tools;

other

ot

groups

increased

their

as

but

all

.

have

workers

scriber.

Sound?

The housewife herself has

our

employ maids
and laundries; and, in, fact,, she
can even earn money by an outside partr-time job.
;
^
With the faithful school teacher,*
unnecessary

to

It

r^ultsthat she has been given
are often^the opposite
true

bv
by

These

her

.

have

school

.

and politicians.

side-"things"

the

accomplished,

take

time and strength.

These

the

I greatly

of

out-

sym-

the

of

all

:

7

,

<

j

the'/Federal Government's deter- '/
adopt

stimulative
policies, if /
j''
* \77./' / / •'
J;; . /.;/ A

^

.

\

liSPm

7

,

pessimistic;, views, if«,made Consistently /yearV |
after year/, \yill eventually appear correct. ' / vl
More optimistic forecasters each year ex- /
press the confident view that our economy will /
continue;, "strong, adjusting and compensating
sectors at times, but
maintaining over-all \ •
prosperity/and
growth. Tn
retrospect, our; J

'

individual

sectors

quarter, and with

;■

adjusting

from

quarter to
periods of excessive inflation

some

Kennedy

M.

S.

to have done just that, with

economy appears

or

deflation.

*

;/

;

,

.

,,,

...

■

,

.

, suggestion whieh
responsible for the cost ;of

partner.':

'' "'1'/

?v"

•

ence

!j

■

(Special

giving them "CAT" as the first
spell, give them "BRAINS"
Have at the top of every

word to

is

Manley

to spell!

Manley

Report Card these words;

Mich.

—

David

connected

now

Bennett

Building,

"Report

the

to The Financial Chkonicle)

DETROIT,

teachers

in their predicament.

On How Your Brain Is Working."

York

T.

can

with

business

in

1957

appears

promising.

very

The postwar

of

increasing total food sales, in terms of constant dollars,
expected to continue.
/ '
'
-•./■

be

,

Some of this increase

can

be attributed to

tion growth.

the

New

Stock

Ex¬

steady popula¬

our

increased per cqpita food spending.

Co.,
of

changes.

Detroit

food

trend

Buhl

&

members

and

traditional methods of

With

Manley, Bennett Adds

*•;

over

operation./
; >r"
;
production, employment, wages, purchasing power and
retail sales expected to continue strong, the economic; outlook for

;

-

Constantly keep the children

school

level of business activity can be expected to
the first.half of the new year./Due to possible,

j .goes-, without paying that the rationalization of

•

pathize with

high

"

to only

/' ./■"//'•

_

!n toe lower grades to interest the
sales-'children m their brains. Instead
sales

teacher's

f / because/of

It could not-only double the

more!

teaching, of
your
children
should seriously consider.
Begin

forced

textbook
textbook

future

"

hear echoes of the usual

reverses in some forces underlying our present /
■.expansion, the second half appears less promis- >
/"ihg./.HoweveE, a serious recession is unlikely

efficiency of every public school
graduate, but it .could' double our
standard
of. living and it ..'could
make
every
one - of
us
better,
healthier, and happier. Then every
teacher
would
gladly be given
double
her
present salary, and

superintendent

hieh-oressure
rugn-pressure

men

been

the

N(jw here ig

those

"things" to teach and to talk

about.'
upon

and

"'

be summed up as follows:

v

used

,

is

more

current

continue through

..

we

can

,

future

of

.

'

the

"The

Iheir

Year,

Most

of capacity. If/ 'f'/u Such warnings have been issued regularly f
each year since the end of World War II. It ;:
what it would mean to.

nation to increase this 3%

6%.

-

,,

jcut down her work so as to make
it

a

Physiologists rumination /to
necessary."are
using our

Admil Partners

calls.,

boss, uses; a

think

so,

"Chronicle"

Model, Roland & Stone

^by telephone;-while stores are fast adopting "self-service." Even the blonde
typist uses an electric typewriter;
.while-her-

With'the advent of the New

year-end economic forecasts.
f

\ fif

,

the

ancj

the painters spray,, instead
brushes; the doctors
quicker '

"j

in

'

im¬

out "and

"

^

of

appeared

the Consolidated Foods Corporation—Editor I

minute

a

originally

:
/, Full production and employment have been supported time
personality — will naturally
7 and again
by consumer demand, one of the least understood,, but
follow. ' Yet;
our 'public
school
.most important segments of our
economy.
If businessmen gear
students are not taught anything
thei£ operations tp exploiting the- enormous consumer -market for
today; about their brain. ? They
;/ goods and, services;, if they jbontinue to expand their plant and
utterly fail to realize its marvelous
Model,' Roland .& Stone, vl20
equipment; if/government spending remains; strong,; there His-no
powers,, how it works, and its treBroadway, New York Gity* memf?
mendous"unused possibilities.
In
bers x)i the New York Stock jEx?
fact, only in the past year did I
.should markdime. manticipation of soft spots'In; the economy.
change, announce; that Walter H.
get interested in my own brain
,7
-fr
"V '
• .»• ,-f;1 •.»
j-, •• ■, •
■
'
'
Berton, member of the Exchange;
through Dr. George Russell HarriWalter S. Morris and Erwin Wolff ■/V. 'J' X"C:V/'.'''Fo°d Industry Outlook •fc' f - fj'f, f
Jy*
SOn, the wbnderful M. I. T. Dean of
,.(.The.fppd industry is a good example of an industry that has
Science, whose article appeared in were admitted as general partners f
adapted its operations to the needs of /its customers, and to the
a recent "Atlantic Monthly."
as
of Feb. 1.
Hennam H. Stone
changing character of the-Americah consumer: Both food processors
on
Jan. 31 retired as .a general
and/distributors haVe.'adjusted well to their new environment
How to Remedy. Our Difficulty
where food technology and marketing opportunities taike preced¬
partner
to
become ' a
limited

use

of using hand

make

''fc\

us; that we
brains at only 3%

the other
neec|s—character, health, posture,

have,- risen;
electric

wages

carpenters

in

taken

be

later.

tell

,

properly

stored

role,

reproduced herewith because of the
fact that the picture of "Samuel M. Kennedy" which was used on
the previous occasion was not that of S. M.
Kennedy, President of

regis¬

are

Terrific Results Possible

ve|op their brains. If this has been

produc-

turn

industry's

Jan. 24 (page 44), and is being

My point Is this:

Why Teachers GetN. More Pay
#

electrical

to
in

compartment

to

years,

ago.

.,

and

brain

Moreover, every emmoney at any
ployer will say that the product of
cost. (2) High- our schools is not as good as it
er salaries are
formerly; was. ' Furthermore, we
being d e - employers
are
not
allowed
to
mandedby j'return the goods and get our
Roftr W. Babson
teachers, and money back" when the work of a
r
t h e r e
is a graduate is inefficient and careshortage of teachers at any wage, less.
years

waves

tered

had fifty

I

food

in¬

object, and how the
-reflected therefrom

an

memory

that these children do not

vinced

see

now

received when I was

the teachers

tell them

to

machinery

heads, they were
I gave them only one

own

are,
changed
pulses which

teaching v my
grandchildren
get
m0re than double the pay which

rowed, includ-

on th& economic
outlook for the economy in general, with special emphasis on the

TV works."

a

began

marvelous

their

they
light

efficiency
salary is

in
her

be

bor-

.money

as

President, Consolidated Foods Corporation
| The accompanying article by Mr, Kennedy

illustration of what happens when

all

must

rates

paid

increase

not

usefulness

and

I

fascinated.

But the fact is that her product
does

interest

er

the

of

School Teaching Very Inefficient

problems

when

side

goal, Mr. Babson advises, we should strive for.

financial

basic

Two

most.

"To understand how

England financial advisor urges higher educational standards,
teacher's job "is to help her pupils
w a

Industry V Outlook

By S. M. KENNEDY

One
replied, "Air¬
Engines";
another
said,
"Space Flying"; while a third said,

and believes the school

3% to 6%

Thursday, February 7, 1957

.

plane

pointing out that "every employer will say that the product
of our schools is not as good as it formerly was," noted New
In

develop their brains." Increasing brain utilization

The Food

possibilities.
'
Recently, I asked some boys
what kind of reading interested
them

.

mar¬

velous

By ROGER W. BABSON

.

But

a

more

important

for rising food sales is

reason

Better products, more attractively packaged, and aggressively marketed, have stimulated bigger
food budgets for most American families.

con¬

If the food industry's growth trend is to
continue, consumer
spending for food must be expanded, especially as additional in¬
come and purchasing power flows into lower- and middle-income
groups.
In sumrdary, the economic outlook for 1957
appears promising,
despite unsettled world conditions, and the usual year-end concern
Already conditioned to tough
competition, the food industry can be expected to keep pace with

$3,360,000
(First installment of

a

about the second half of next year.

total issue of $6,945,000)

our

expanding

there is

Baltimore and Ohio Railroad

Equipment Trust, Series II'
4%

mature

To be guaranteed

of

Sales

of

Hugh W.

Long and Company, Inc., Eliza¬
beth, N. J., has been announced
by
William
Gage
Brady,
Jr.,

payment of principal and dividend warrants by

endorsement by The Baltimore and Ohio Railroad
Company

'

ELIZABETH, Isf. J. —Election
Eugene J.
Habas as Senior

Vice-President

Chairman

the

of

Board.

At

the

time,
L.
C.
McDannel,
George T. Moeschen and Harold
same

MATURITIES AND YIELDS

11
•

1958

3.80%

1960-62

3.90

1963-72

Presidents

4.00%

1959

T. Meusbacker were named

4.05

Mr.

any

such

of the undersigned and other dealers

as

may

Galvin

Habas

announcement is circulatedfrom

of

has
the

only

He

been

Long

HALSEY, STUART & CO. INC.
&

MERLE-SMITH

FREEMAN

&

R. W. PRESSPRICH

&

CO.

been

SHEARSON, HAMMILL &, CO.




of

Editor

as

Journal."

&.

INCORPORATED

February 6, 1957.

President

well

BAXTER & COMPANY

WM. E. POLLOCK

McMASTER

HUTCHINSON

&

CO., INC.
CO.

long been

Moeschen

and

formerly

were

Presidents.

Secretary.
Assistant

Mr.

Mr.

Meusbacker

Mr.

Vice-

Moeschen

has

been in the mutual funds business

since

1930

and

since 1932.

Mr.

Meusbacker

♦

Miss Galvin has been with

Hugh

W. Long and Company since 1946.
Mr.
Pils
joined the firm
in
1954

after

24

years'

association

with Investors Management Com¬
pany,

,the

Inc., investment advisor to
funds for

mutual

which

the

writer.

In

position
dent,

as

he

capacity

as

addition

Assistant

will

to

his

new

Vice-Presi*-

continue" in

his

Assistant Treasurer.

•

was

Society

COMPANY*• THE ILLINOIS COMPANY

Vice-

a

Company

previously associated with
Lehman Corporation and before
that. time was in charge of re¬

lawfully offer these securities in such State,

has

Long Company is. national under¬

search at Fenner & Beane.

DICK

and

were made Assist¬

since 1944 and has had 31 years'
experience in the financial field.

by the Interstate Commerce Commission.

State in which this

Ann

Vice-

ant Vice-Presidents.

President
Issuance and sale of these Certificates are
subject to authorization
The Offering Circular may be obtained in

and

George F. Pils

McDannel

formerly

was

$224,000 annually February I, 1958 to 1972 inclusive
as to

Miss

associated with the Company and

Announces Elections

Equipment Trust Certificates

unconditionally

And, as consumer income moves upward,
why the food sector cannot continue to enjoy

economy.

reason

Hugh W. Long & Co.

'

(Philadelphia Plan)
To

no

vigorous growth in 1957.

of

the

Security
of

New

To Hear Sorensen

York

Analvsts

the

Wash., D. C., Analysis

He has

as

"Analysts'

WASHINGTON, D. C.—Stanley
M. Sorensen,

Organ

President, Hammond

Chicago, will
raising for .speak on the organ -industry at a
Fundamental Investors, Inc.; luncheon in the Burlington Hotel
Diversified Investment Fund, Inc. before
the
Washington
(D. C.)
and the two other mutual funds Society of Investment Analysts on
sponsored by Hugh W. Long and Monday, Feb. 11, 1957. An organ
recital will precede the luncheon.
..Company... .;
.

all" phases

Mr.

of

Habas

capital

will

direct

Company,

^Number 5610

Volume 185

these-""appear

-.'where

Vtiye

in

*"

of

*

•

Business Administration

billion

.

coh-

Intimately

,

and, after analyzing past several years of
accumulating strains and the components of the spending

other

owed

Tnxl(j

$32

billion

instalment

on

pur-

debts.1

'

since embarking

farm

on

Y

*'

v

;•

*

current

its

*

Increasing Money, Wages

1

and Prices

of considerable

that of maintaining full employ-

oversimplification these two. philosophies may be described as follows:
v
t
' Yr Y;

ment along with an ever-rising
level of wages and giving only

heading

a

for

At the risk

1957.

mortgages.

..

on

program of checking inflation.

(2) The opposing philosophy is

be

people have added
$100- billion to their-

»

*

contest which may
a
showdown in

philosophies,

The

yiears
than

more

needed breathings spell, with GNP increasing from
$427 billion dollars unaccompanied by as large a rise
a

intricately)

'

question is the present tug of war
between two different economic

and

billion

>

(and

connected with the answer to this

$10 billion on other
things, including -$4 billion -on
department store charge accounts,
This total of $137 billion in personal debt does not include $10

business .cycle

in'physical volume; Assumes we will lean closer to Federal
Reserve point'of view than to that advanced by Congressman
Wright Patman and, if so, money cost will neither incre^e nor
decrease significantly but availability of funds is likely to be'
somewhat greater.^ Sees slight department store sales rise for
Spring 1957 primarily due to price rise; and does npt: expect
wholesale prices in 1957 to rise as rapidly as in 1956.; V *.

and

consum-

homes,

on

and

chases,

..*

outlook, advances the view that business will not turn down
in 1957. Professor McNair expects growth rate to flatten out,

debt

in debt for nearly $95

now

are

cars

$412 to

.

American

debt.

sumer

Recognized retailing expert surmises. 1957 may witness the
first real test of whether we have learned to overcome the

permitting

an

;

.

ers

School of

have

business

also

•

Graduate

our economy

•

We

(5)

but

Lincoln Filene Professor of Retailing,
Harvard

ing at ti>e problem ;is to say that tain business stability, and .this is
has now moved in on where the present Federql'Re-

attraestock

more

Comrnoa-

many'

;Y Ta very high plateau, and the ques- serve
policies ' presumably are
enormously tion is wh£theF vte •cahr stay oil it./pointed. The* Board/as you arp
high debt structure, not only Fed- •
.
all aware, has raised the rediseral, state,' and municipal debt,
II
'
count rate no less than six times
.

'

By MALCOLM P. McNAIR*

than*

yields.

'

13

(677)

-The-Commercial land Financial Chronicle

.

.

.

Solution

Monetary

(1) The first is the more or less
conventional'policy of seeking to

secondary attention to what may
happen to prices.
This was the
philosophy underlying the Full'
Employment AcL- of 1946 in its
original form. (The original meas-

M After.'sevlral years of sta- maintain business and price sta- "re
considerably ^watered
bility
Wf. n^w have .a disturbed, bility * through appropriate mone- ~u-1
^S11- / Congress.) - - jy is —u
. the
u"
■u-'
price structure; •>The • Bureau of
■•
tary and' credit cbntrols.'' This Phlt°s°phy' expanded.' .byi-siieh.
Labor Statistics index of alt-prices
of thinking
presumably is PJ°Ple -J? Le?,n Keyserling..head
.

T

.
,

...

...

r

vother than farm and food .pnces. represented by the'present policy
the
lis up
ecnis%7
the end of 1954. of the Federal Reserve System.:;^®"

Council of . Economic^d-

Truman;

,Walter Reuther; andvsome^mem-en
in- eight out
of the last
of, Congress; such as Wright
L .-months and mow stands at a new essentially a consequence of' get-- Patman of Texas. ,I.n recent hearv>.rt-'
: high of 117.8discounting has time ti
-At the same apthe whole economy, or sev- in§* of • Congressional subcomSlack. Of course m this post war someprice
eraj important sectors of it
ex
mittee of which he is chairman,
lb the light of trends of national -Period we live under, some • basi- peafed in capital goods »,
' panding at a rate that cannot be Wright Patman expressed himincome and outgo during the lat-<•?"£ changed,, conditions such as
(7).. The^ number of housing maintained; in other words, we get self as . being more; interested in
-»
SOUnd
PCOplC
than
In
SOUlld
ter part of 1956 the question "Will bigJederal budgetswhich help to starts definitely turneddown dur,nto a 41tUation where all of us money. By this he meant that the
business turn down in 1957?" may stabilizei.the flow of spending and ing 1956.-The October Tigure was try to do t00 much too last and
main objective always should be
appear as bethe built-in stability features fur- at the annual rate of l,0o(),000 as hence begin to outrun our means full
employment.! The practical
'

?

»

•j.

-

Federal

stood

a

The Gross Na-

quarter
rate
P. McNair

of

$414

billion

and

There

(9)

sure on

substantial

is

resources

terials.

pres-

ol labor and

Shortages

are

lines.

many

slowdown in the

rate of pro¬

perhaps

outrun

in

some

respects

to

immediate needs.

our

implication

is

credit

that

should

be allowed to expand sufficiently
When

such

approach

to

begin

we

condition the conventional

a

....

,

,

tut, to

a

.

,,

,

.

.

,

.

remedy is to slow down

.

,

,

take

to

wages

care

of

rising,

money

though such rising
wages outstrip productiv...-0—
^

even

money

p
on tne DraKes, tnat is, tignten
increases
While it is tenable
money rates< fhus we seek to that from time to time the money
Prevent pi ices from running away SUppty has to be increased in oron
VP side, to prevent bidding der to acCommodate a larger volUP *01' inventory> anb so to lore- ume of pusinesS) the strong advq.-

!

consequent instability,

.

marked
which

recession

follow

in

money

bring

in

the

of

wake

a

By tightening up

collapsed boom.
we

and
eventua
employment

retreat,

panicky

on

There has been an appar¬

(10)
ent

and

ma-

steel

in

looming up, and there is a definite
shortagevof skilled workers in

plication, has been made of wartime scientific discoveries, the unexpectedly rapid increase in population, the more broadly based

at

was

annual

the
M.

third

the

for

automobile.

than

business..

of

growth in the 1930's, the burst of
technological development as ap-

tional Product

other

business

by the war, the
making up for the
abnormally low rate of economic
necessity

annual rate of 1,209,000
Usually in the

an

October, 1955.

cycle.
*
(8) Some inventory accumulation is'-present at manufacturing
and
wholesaling
and
in
retail

of goods created

in

148

December,

..

general business

cir¬

favorable

of

a

probably
to

rose

series

whole

permanent character. I refer to
such factors as the great scarcities

November,

and

for

d/v,,Tvo

past the building cycle has tended
to
peak a little ahead
of 'the!

cumstances, not all necessarily of

147

at

against

struc-

We have also had the benefit of

Production

in

banking

stronger

ture.

Reserve Index
of

the

and

^nf,n,+nl« i.,.nn/l

.nio.li,

nished by social security measures

u n d u 1 y
apprehensive.

ing

The

bnlnin

PoJo^dl

U.rt

-

.

^

,

Prof.

The basis ol this phUosophy ls the
nine idea that a-businesii
depression is

-

,

.

The consumer pnee index has ris-;

!'

that

it is

rates

argued

a

flattening

about

of

cates of this second philosophy
apparently would push ahead with
an

credit program

easy

standing

any

It

tions.

to

course,

notwith¬

inflationary implica¬

would

keep

hoped, ;of
price inflation
be

within moderate bounds

over

any

'activity, some postpone- short period; but if necessary, di¬
including whole new inductivity increase in industry. The
alpout $422 billion for the fourth dustries such as TV, atomic en- output per manhour has avi'aged *ment of capital s^endinS' a reHuc
rects control of prices would he
quarter: rSimilarly, personal in- ergy, and so on, the growing pracfnS f't'i'oit"in debt^(or at least a -c'on- f.rPc0rted to
f
a 3% rise every year since.the.end
,,-idGrabl(S dft)Dv in the raDiditv i!0fr
0
'
come went from an annual rate of
tice of long-rartge business "plan$327 billion to $332 billion and ning of capital expenditures, tne °f the; war but m 1956 it increased, debt accumulation), ^ome flatten- +uThe, foregolnS
the
description of
disposable income from $288 bil- five
year
period of umisually at obly a little over half thatrate^ ^
moderate drop imcoh-Fjheseulwo opposing, economic phistable prices
lion to $292 billion. Personal con- stable prices following 1951,-and
1951; and
« a modwatel^ris-fsumer spending. j^ibly • some-fte^ « "t^urse, an oveiw
the moderately conservative mid¬ ing trend of business failures.
what lower prices, a reduction in simplification.
It is a much too
sumption
expenditures, which
probably

hit

.annual

an

of

rate

economy,

business

.

;

.

at

were

billion

the

the third

in

ably hit

annual

an

of

late

dle-of-the-road

$267

which

quarter, prob¬

fourth

which would
mean that the savings rate possi¬
bly went up from $21 billion to
$22 billion. Unemployment in October

stood

the

at

low

figure

have

we

end

at

the

of

since

any

time

simultaneous turndown of several

of

1

.

important

•

.

outset

the

of ; 1957,

economy

our

Downturn in 19d7.

"period resemble .more and more
closely some of the periods which
question,* led up to crises in earlier years

It is not,: therefore, any specific
weaknesses in the. current general

.

trend

which prompt the

"Will

business

turn

Let

before the war.

in

down

are

The reasons why I think- ate some of the evidence on
question is not inappropriate this judgment is based,

to be found in the cumulative

picture

of

.

what

has

been

...

.

.

in

country

the

increase in satrise,
probably

to

gun

happen,

of

course,

be

21,

This

relaxed.

is

the

;

"

\

-

is

an

offer to sell

or

as

Patman and

"the
far

bad

from

a*solicitation of

main-

a>i

"the

good

guys"

guys."" The situation is

Continued

on

offer to bny these securities.

'l'/ie offering is wade only by the Prospectus.

;

which

*

$12,000,000
-

.

Public Service

Company of Oklahoma

First Mortgage

entire

Bonds, Series F, 434%

"

postwar

period.

believe

I

that

a

) the beginning of the first real test;
'

of whether the American economy

has

how to

learned

business cycle—the alternation
•

boom

and

until

World

bust

constantly

War

II,

recurring

(2)

of

which, at least

at

presented

Money is tight and scarce,
by any standards of the
years;
and this financial

of

nothing

spending programs. Part of this
picture is a
substantial use of
bank credit for capital purposes

called

serious

more

"rolling

than

so-

and

readjustments,"

a

namely, those of 1946, 1949, 1954,
and perhaps early 1956.
In each

money

of these situations when there was

is

a

decline

nomic

in

the

some

sector

spending,

such

important
as

automobile

to

take
*An

up

by

fore the
*

National

ciation,

New

being

exerted

fourth

rising

costs.'

profits

before

COURTS &. CO.

J. BARTH

&. CO.

COMPANY

offer these securities in such state.

FIRST OF MICHIGAN CORPORATION

MULLANEY, WELLS & COMPANY

STIFEL, NICOLAUS &. COMPANY

taxes

McNair

dropping ever since the
quarter of 1955.
Appar¬

ently

the

about

sufficiently

$1.7

total

(4)
^

for

billion

1956

will

be

lower than for

F. S. YANTIS &, CO.

CLAYTON

SCHWABACHER & CO.

SECURITIES CORPORATION

There

increase in

has been

a

marked

bond yields to a

point

ALLISON-WILLIAMS COMPANY

INCORPORATED

JOHN

B. JOYCE &. COMPANY

PATTERSON, COPELAND & KENDALL, INC.

'

1955.

be¬

Dry Goods Asso-




in which this announcement is circulated from only

HALSEY, STUART &, CO. INC.

THOMAS

by

have been

City.

arty slate

INCORPORATED

Corporate

building, or
business,
other

Retail

York

circulation.

eco¬

Professor

he obtained in

velocity of

relatively high

government

most if not all of the

address

may

of the undersigned and other dealers, as may lawfully

(3) A definite squeeze on profits

inventory

sectors have advanced
-

Prospectus

such

is

spite of occasional prophecies

impending downturn, the business
community thus far in the
postwar period has experienced

-

The

beginning to force postpone¬
ments and reappraisals of capital

In
'

Priced 99.25% and accrued interest

25

pinch, which is much more sever.e
than was foreseen 12 months ago,

a

problem.

February 1, 1987

least

last

up

Due

February 1, 1957

ings and may be outrunning nearby needs in certain lines.

the

overcome

Dated

-February 5, 1957

McMASTER

and

his cohorts appear as

being this simple.

conven-

T/iij -announcement is not
'

*

it

important that the credit controls

staip-btack^d^te wntras^in
which the Federal Reserve Board
appears

.

(1) We have heavy business
spending for plant and equipment,
; review of this entire period sug- $35 billion in 1956, which clearly
! gests that 1957 may well witness is outrunning the supply of savthis

in

on

*

Accumulation of Strains

going

an
some

enumer-

me

1957?"
this

;

Dec

and

tional theory of the way to

begins to show an accumulation of
strains which makes the present

.

*

.

World Report,

look-

40.

.,

indices point upward.

F'

p.

of

Another

JJ. S. News &

1956,

inventories,
ings,

moderate, in unemployment.
As
soon as alLthese things have be¬

and it is now looming in¬

tensified.

economic sectors such
1.9 million, but in November it as government spending, construcexhibited a sharper - than - usual tion, consumer durables, and capseasonal rise to 2.5 million. With ital goods spending. Nevertheless,
the exception of the last, all these as the situation stands today, at

.

once.r

years,

the

experienced

no

war

is

that has happened
It is a situation th'at

has been growing up over several

others,

For all these reasons and

quarter,

of strains

accumulation

something

all* at

later years.

figure of $270 billion in

a

not

these

characterized

has

This

climate

political

HUTCHINSON

& CO.

PETERS, WRITER & CHRISTENSEN, INC.

Even

page

37

14

(578)

ment

Outlook for

Housing
New

York

plywood,

and

paper

low

pro¬

Many ct.

cates

timber

lowed

have

to

increase

national

than

more

The

economic

bright, but

one

the

lack

the

past year.

of

about,

picture

and

scarcer

is

being produced.

fairly

housing starts during

to

tire

a

far

sub stantial

tion.
own

our

minimum
40%

our

by

housing
t h

an-

r,

the

e

ing

Owen

largely
industry

into

R.

Cheatham

get

Dooming commercial and

dustrial

business,

additions and

1956

rate

along with

maintenance

to

A

modest

program

to

boost

support

new

from

the

President

Economic Council

in¬

s

•From

ence

of

address

an

the

Ninth

the

market

by

Mr.

National

American

and

develop

possibility

that' credit

nome-building

to

a

by

Chairman,

Credit

(1), Home-building

-

be.turned

off

with

flow

the

and
of

tnat

the

believes

that

restric¬

Confer¬

harder

of the economy.

Associa¬

than

other

areas

He said recently:

responsibility of

govern¬

social

In

the

better

and

behind

rest

of

to

neither

an

ofer tn sell

nor a

The offering is made

solicitation of o^ers to buy any oj these
securities.

only by the Prospectus.

the

February 6, 1957

houses

ot

witn

us.

28

years older.
Prewar, demoli¬
tion, and other losses were aoout

fid nop

Our

^«ar.

a

advisers

tell

that

us

will,

increase

years,

Aluminum Company

Wiuiin

through

tiuee

of.

It

has

been

present living

standards,

demolition,

400,000 per year.
phenomenal!

we

about

or

are

83%

producing now.
jobs by that

Insti¬

to

easy

scramble

supplies

to

make

round,

go

profitable

more

This

Unfilled

tial

r v1

Real

is

built

make

demand

is

challenge

to our
two-thirds of

a

in¬
our

lies

in

the

West,

One-third

about

ih

the

South,

East, although

much larger

a

percentage of tne old-growth tun-'

berj

in

diminishing

the West.

is in

supply,

■'

I

The

United

chiefly

States

rely

must

its domestic timber

on

for

the

future.

It
or

is

Housing Demand

home

expansion

of

Residen¬

per

average rate

share

from

year
mand

is

of,

1946

erected at

an

1-million

over

to

1956.

from

far

is

greatest

the next 25 years,

over

dwellings have been

Price $83.25

its

Yet

t

can

sible;

such
and.

underwriters
iu

which

are

the

qualified to

Prospectus

act

may

as

dealers

legally

be

in

toward

urbs;

securities

larger

trend

more

vast

distributed.

new

families

living

a

de¬

the

of

area

earth

surface

s

which

America, and in the Soviet
Bat for

one

reason

or

other—inaccessibility, high

an¬

cost of

time to come, for America to
rely
those
sources.
Canada
has.

on

about half
ume

much

as

the United

as

softwood vol¬
States,

congestion
greatest
need,

through

nities, and will
houses
sand.

I

the

outlook

for

the

domestic

ex¬

NEW YORK

BOSTON




PITTSBURGH

CLEVELAND

SAN

.CHICAGO

FRANCISCO

will

cut

be

re¬

of

wide

thou¬

replaced

by
will

a

mortgage
answer

money.

to

this

You

better

know
than

I,

but
we
believe that
the
Whi e
House is cognizant of this
fact, and
we feel sure that the situation w ill
not

be

permitted

to

get

out

ol

hand.
In

lower

might

grade

stand

lumber,
in

us

near

Juneau,

distant from Seattle

cisco, covering
and

conditional

structing
this

on

States

we are

will

have

told, the United
a

population

bonds,

all

moved, but
of

our

not

upon

our

con¬

been

completed,

obstacles

the

Plans

been

project

is

a

re¬

part

act
in

available
Forest

a

from

Service,

securities,

mutual

President
and

shares

and

S.

and

stocks.

oil

Rooker,

Treasurer

and

Peak,- Vice-President

Secretary.
Rooker

S.M.U.

He

is

a
graduate of
formerly Execu¬

was

tive Vice-President of Keith Reed

Company and prior to that
officer

of

the

Bank.

several

was

Mercantile

He

is

Na¬

Director

a

corporations

of

in

engaged

the oil business and oil well serv¬
ice
fields.
He
is < Vice-President

Director

and

Federation

Society.
Mr,

Wharton

a

graduate

Academy

School

five

years

the

Business
officer

of

of

was

the
For

member

a

of

School

of

the

S.M.U.

several

the

of

and

Finance.

of

Faculty .-of

he

Analysts

_

is

Naval

National

Financial
-

.

Peak

S.

U.

t

the

of

of

He

is_

an

oil

companies
and has for the past three
years
been
actively associated with a
company engaged in the purchase
of producing oil properties.

Hugh Bass, Manager of the Mu¬

nicipal

Bond
Department,, has
actively engaged in the se¬

been

curities
He

business

started
in

ness

in

for

many

years.

the

banking busi¬
McKinnev, Tex. He was

Secretary-Treasurer of the Dallas
Securities

Company, one of the
Dallas investment firms, and
later was an officer in the Mer¬
first

cantile

Trust

He

served

has

ficer

of

vestment

the

has

three
an

Bank.
or

of¬

Dallas

in¬

firms.

Edwards, Manager
Department, was ed¬
University of Illinois.

been

securities

partner

other

E.

Sales

ucated at the
He

Savings

as

banking

Sherrill
of

&

several

associated

business

years

for

with

the

and prior to that

independent management

sultant in this

long-range planning.

fund

and

A.

and

municipal

George

are

PiesAon

underwriters

as

public utility

insurance

Officers

equi¬

period,

to

dealers

bank,

San Fran¬

pulp mill there.

a

have

have

nor

about
as

50-year

a

the

past
was

con¬

area.

American

long

way

ades.

forestry has come a
during the past few dec¬

Modern

with

the

roads,

fine

forestry

and

of

system

firebreaks,

methods

practices,

fire

-

ter

of. tion

of

forest

between

equipment,

fires.

The

private

accsss

f gating

largely eliminated the dread
1860,

good

Georgia-Pacific Corpora¬
tion has rights to 7-billion feet of

of- timber

commu¬

Obsolescence

and

stead.

demolition of

mean

pulp

timber, mostly suitable for

which

The

rapid rate. The big
"if," of course, is the availability

the

PHILADELPHIA

the

areas

existing

will

housing.

increase at

Corporation

the

by several hundred
These

new

The First Boston

in

is

States

industrial

but the

quality is generally inferior; and

sub¬

highway program/to

lieve

swaths

the

families.

new,

For

of the "limber Re¬

Texas—Metropolitan
Corporation
has
been

tional

This

and

in

and

interested in such

Review"

Building
and

in¬

flying
over
the
world, one thing wnich has always
been amazing to me is the small

makes wider home ownershio
pes-, erable

Copies of the Prospectus may be obtained from any of the several
underwriters, including the undersigned.
only hu Stales in which

copy

Dallas

&

be moving from second
cannot
contribute
materially to
gear to'
high—some of the reasons: greater the demands of the United States.
income for
millions of families
Southeast
Alaska
has
consid¬

v

future.

study
generalized.

formed with offices in the Vaughn

an

pansion in Canada, with the o her
study makes a Convincing analy-- demands upon Canada for her for¬
sis that
home-building will soon est products, indicates that she
filled.

How¬

the tim¬

on

Corporation Formed

le-

When'

crease.

Union.

construction

threshold

talk

a

so¬

con¬

DALLAS,

not"

Estate," released

that

the

on

the

for America's

a

United

,

Domestic Timber

on

inferior
by the transportation,
qjality,
University Press, the badly mixed and different spe.ies
penetrating study yet made, —it is not feasible, not for a long

shows

alleviate

be

you

Mr.
Reliance

likely that imports will

alone

to

Princeton
most

the

Metropolitan Dallas

timber

of its timber.

four

have

"Capital Formation In

$1 Par Value

of

Washington, D. C.

digging

the

and

use

potential

tremendous

and

to now,

up

sources

arouna

This
We

25%

These' prob¬

separate

a

of

source

the

production must virtu¬

paper

time,

not

not

study,

indicate that plywood

Pro-

number,

to

is

those

Research

more

solved, but their

resources

That

day will be that of replenishing
our rapidly
diminishing raw ma¬
Stanford

the

goes

must be made of it.

this is not

should

tute studies

time

utilized.

be

will

One of the toughest

and

an¬

to

tinued scramble for timber.

ber

billion,:

than

an

equal

quality; and

same

not

lution

ever,

more

produce

as

present

is

have to put out a national
product

$750;

Cut

management

about

uses

lems will

of

South

Common Stock

the

tree

will

we

the

ot

At

lorecasi

barely enough new houses to keep has commercial timber or any
timber on it.
up with population growth—-and
Without g:ing into
most of them very small houses at' detail, there is timber in Central
that.
Africa, in parts of Central and
;

of America

be

never

that by 1976, less than 20 years
hence, our population will be 230million; and if we maintain our

now

or

this

a

by
is diminisned^ the
second growth will not

dreamed

eco¬

Highway

giam

h A

still

are

pew

Most

the yearly rate is 250,000 and that
the new Federal

250,000 Shares

iV.'i

built

we,

them.

on

and old growth

2'

ingenious

timber

nomic

However,

younger

and

to

cut.

engineers of today

nation's

50.0no

all

of

be able to

engineers of the future are
going to be confronted witn prob¬

houses have been

actually
1929, for old
falling into de¬

cay., faster (than
houses to replace

j

growth

should

lems that

About

old

nual

needs

to

Equal

10

American famines

new

dustry.

the
New I

the

serve

standard of housing is
lower today than in

is

fire

We've
toward

problem

forestry

be

The

liv¬

our

In fact, the Ameri¬

can

lire

will

way

sonably

further

in

since

pull.

witnin

year
a

Good

into its rich stands of timber. But
the industry is soon
going to have

the

still
rise

the

Growth

a

Herbert

more

recovered

loss

Leaer

generation smce
tne standard of housing na;

1921,
lagged

per

oegin

greattsl

is

need

housing.

be
on

Moreover,
be

can

without

downhill

2-mnhon

to

ago

years

said:

would

area

Coast.

timber

getting

it

"America's

Thirty-five
Hoover

also interesting

kills but does not destroy.
made
spendid
progress

ally double by 1976 to keep pace
with these mounting consumer de-<
T * mands. America has had it rea¬

and-

Pacific

burned

famiiy

houses,

will

rise

Somehow

terials.

(2).

housing is still great.

he

additional

houses

new

late,

money;

heavily
major
fire

large timber hold¬

burned

any

the

fam¬

new

new

new

demand

upward

these

cannot

ings

that

and

and

mean

time

sharp

lor

Home-building is one of America's
most dynamic industries;-.
(3) The
for

^formations;

ily

found

overnight

on

need

housing

Cheatham

Bankers

sons:

It is

that in

Pacific

this

any

virtually

1940,

increase of about two-

an

formations

It lias been pointed out

year.

whicn

in

area

catastrophe.
to note

great

«Consequently, there

years.

years.

a

preclude

-

the

on

is estimated that beginning about

since the planning and prepara¬
tion period, even when the money
is available, is at least six months

100%

a

too

may come

birthrate

tne

Coast,

timbered

tne ; moist

pius

small, especially in the fog belt

the

relief

in

about

factors,

weather conditions

to

years

thirds in the number of

saies

new

many

This is because of the

will be

digest, the

concerned -with

are

ing standards.

Not-

al¬

,

we

He has said

"It's the

his advertisement

it

These

trend

s

preven¬

three

further

that

ex¬

tion, Chicago.

ji

to

Raymond J. Saulnier.

the

isting houses and the "do-it-your¬ tive credit policy now
being fol¬
self" market, has gone a
long way lowed
by the Federal Reserve hits
before

because

for

t n i

fire

in¬
crop of babies will begin
reaching 20 years of age in about

and

But

In

home-building in 1957 is likely to

into commercial construction.

The

the

the

1956

appeals.

approximately 1-million starts,

able.

other 60% go¬

and

that

in

continue

increase

financing.

...

one

or

think

of

number

creased

think, thougn, that ,u
well that fewer houses

built

the

at any time before; and,

catastrophe,

started

on

special-study panel set up
give or take 100,000 either way, is
for
home-builders, mortgage
about the irreducible minimum.
bankers' associations, life
insur-,
As a matter of
fact, anything less ance
companies, industry, govern¬
than 1,300,000 new units is
merely ment
observers, and economists
borrowing from the future; and
that a deeper or long-continued
the lag will be more than made
up
cutback in home-building would
when funds are more
easily avail¬ be most unfortunate lor tnree rea¬

is atd

e

way

of

a

of

of

product
fect

o

advisers

company,

perhaps

industries.

relies

us

.conditions

en¬

Home

fact,
it was a major spark
plug of the
postwar prosperity.
We
think, and our economist

situa¬
In

other

in the

was

that

from 1955 building: it
running
up .pi
pricing more houses out
of the market; and it let builders
adjust themselves to new market

building is
reaching and the mainsiay of

many

measure,
by
the
tightmoney

serious threat to the

a

economy.

come.

Veterans:

as

avoided

(

resents

brought

was

just

costs

alleviating the reduction
housing starts; but it still rep¬

in

will

September.

hangover

,

toward

upsetting factor is
This

valuable; and will
$750 billion, or 83%

more

product to
now

is

season¬

1954 to the

last

market

and

were

getting

hit

lower-cost

by 1976, and while good forestry manage¬
should produce growth equal to cut, the situation indi¬
is

their

from

Nearly all this cutoack
FHA

products

paper

double

in

government

tion and control has worked well.

barring

new

duction must double
ment

about

age than

Thursday, February 7, 1957

.

.

and

Beginning, in
will have

we

years,

youngsters .reaching marriageable

ally adjusted peak in

economic picture, Mr. Cheatham
housing starts have probably reached their low; we
expect sharp new house upward rise to 2 million per year
years;

about-three

cutback 31.4%

City

reviewing the national

ten

175-million.

about

ex¬

V

jy

situation,
home-building has been hurt first
hardest.
Housing starts were

believes:

within

pressures."
tignt-money

the

In

and

President, Georgia-Pacific Corporation,

can

unintended

alleviate

to

cessive

By OWEN It. CHEATHAM*

In

The Commercial and Financial Chronicle :

,

have
spec¬

coopera¬

ownership

W. H. Keller Opens
INDIANAPOLIS, Ind —William
H.
Keller, Jr. is engagirg in a
securities business

from offices in

the Circle Tower.

Mr. Keller

was

previously with Francis I. du Pont
&

Co.

and

Merrill

Fenner & Beane.

Lynch, Pierce,

Volume 185

Nutpbpr, 5610

f „

The Compcrjci&.md Financial Chronicle)

.

tne

Importance of Confidence
By ARTHUR O. DIETZ*

be

cut

head
off

curtailed

credit

avers

the

to

with

that

extent

resultant

for

lower

legitimate needs

must

never

all-important consumption is
production and employment.

has

become

"tight" .and

money

of

most

have opinions on whether that

us

is

that

good

a

of

bad thing.

or

Even those

who have

us

not

judgments

monetary

nevertheless

Reserve

well

i

aware

pur

to

things.

worthiness.

If

fore,

the

econ¬

to

all

in¬
O.

anization

cost.

:

of many

savings

the other

price

of

other
cash

m

investments
kind.

or

,

On

hand, the recent higher
money
and its scarcity

are-burdensome
to

if

seek funds

we

"our

businesses, arrange
home mortgages, or, as taxpayers,
run

units

to

borrow

either

long-term funds.

or

short-

Either

way,

pocketbook nerves are being
severely pinched and, of course,
the pocketbook is always a Very
our-

sensitive organ.-.
Some

politicians who believe in

cheap money at all costs are vigorously attacking the Federal Reserve for its so-called
tight money
policy.
Some financial analysts
the

blame

ment—a

is

v

American

average

for

men—asserting

that

tight money
is going to
cause a complete economic collapse, when
they really
mean they are afraid that the sales
tor their specific products or services may suffer.

-

would

To Money

in

doubt

unanswered

the

the

of
of

this

of

stores

labor

.

'

hasMve

higher

a

have been

been

and

«•

.

For

*

our

.

"Essential to the stable economic

the system

materials.

icies
the
to

the

of

U.

Federal

restrain

4

i

acteristics

of

energy

,

.

S.

Treasury,

Reserve

was

that

is ".our

free

set

overflow

rising

of

credit

prices,

dollars

as

that

and

more

a

sup-

fullv

using

limit

the

their

techniques

to

quantity of
to bring

began

the

credit,

the supply

a

both

to

the

of

in

broad

terms

whole

monetary

and

effect.

through

believe

econ-

credit

which

policy take
Congress

the

should authorize the creation of

able

and

citizens to undertake

Out

of their findings

mendations
*An

Town

22,

the

a

qualified

this inquiry.

and

recom¬

Administration

address

Hal!

of

in terms of its function

mechanism

of

price of
Paid

rises, the interest
savings rises. This at-

savings.

more

such

already

in

rise

a

noticeable.

savings

by Mr. Dietz before the
members, Los Angeles, Jan.

1957.




early

interest
in

rates,

no

longer

planning, financing, pro¬
and selling that goes on

the
•

American

ultimately

business

for

svstem

other.

sup-

But it

the

kind

one

is just as

jt

that American

m

owe. I often say we are, in
dividually, the world's best credit

My company has suc-^
cessfully extended $55 billion

managers,.

the value of the dollar,

largely

Americans

Hvta'

banking system.

**£££111 lZ'ZZI and assisted
reserves * couraged
-

„

The events since that time have
to my satisfaction that the

command

tools for monetarv

trol

are

its

con-

effective

very

inflationary

restraining

for

forces

tKe

salesmanship,
the

and

There

is

the vital

no

the

+o

dwell

System, namely,
McChesney

William

on
a

the

leg

This advertisement is neither

have

pacity.

labor,

productive

materials

or

ca¬

cre¬
ca¬

pacity. It will simnh' drive orices
higher, as the additional dollars
bid for the inelastic supply of la¬
bor and goods.
An

outpouring of efficiently

duced,
and

the

pro-

relatively low-cost goods
is, in the long run,

services
most

powerful

and

primitive

mies

As

only

symbol

a

it is also

emerge,

is

there

society,

more

advanced

»>

econo¬

the glimmerings o.i
-

credit appear, but it is of the simContinued

It is

o^cr In sell

not

nor a

on

solicitation of ofcrs to buy any of

(jjjtfiUi is made only by

page

these securities

l'iospin^s.

hie

NEW ISST7*?

February 6,195?

£50,000,000
'

'

'

•

:

1
'

'

'

'

!

Quebec Hydro-Electric
Commission
-.4

:

JM

%%Debentures, Series Q

.

Dated

February 1, 1957

Due February 1, 1977

"fy£.

Guaranteed

V

unconditionally

as to

principal and interest Ly

PROVINCE OF QUEBEC

Mr

(Canada)

-

accom-

price

Trice 98.75% and accrued interest

belabor

to

ecouomv

but

hist

for

a

would

I

moment

for maintaining

balance

between

con¬

spending and saving. There

been

many

Questions

Copies of the Prospectus
initers

may

he obtained from

any

only in Stales in which such underwriters

of the several underqualified to net as
distributed.

are

dealers in securities and in which the Prospect us may legally be

raised

lately concerning the adequacy of

More money will not

more

an

i he

is

symbol of economic maturity. 'lit

credit.

and

Tripod—Credit.

the

of

prudent, honest

prices

ritfht

^credit

reason

necessity

careful

sumer

What Is Lacking

materials and

a

consider the third

us now

a

trust and trustworthiness,

the opposite side of that coin- saving. Let

testify that

when I

are

importance of Consump-

to

Martin and his colleagues,

raw

Consumption

something of an ex¬

trustworthy people.

Credit

a

for

Enough

49 yean?,

is sizable.

J'ke

Chairman

the

necessary

f;r»p

and

and

thanks

million

16

t0

past

to buy up

modot'ons whenever the unit

present leaders of the

Reserve

able

of

zeal-

how

Americans

tractive.
.

I feel like

pert witness

faith

the

in

0.Jr great output of products of all
k;hd«* bv jr»ppnS o* the rteht kind

in ",

These events have also

peacetime.

ate

so

Federal Reserve's

the

to

credit

o£

worth

higher

renewed

have earned,
pay wha.i

far^liercollective'ly

Market operations thereafter w»re
du P0it Comnany calls them
directed at regulating and limiting:
and Mrs
must be

are

but

for

an¬

or

important

jo

™r thingsTor

0us

only

Not

1955.

take

is the trust

as

they

is

At

present,
they estimate savings at an annual
rate
of over $21 billion,
nearly

in

-

multitude

this credit because they

figures of the Department of Commerce,

As broad

the American people

the

Using

violent

port U. S. bonds at par. The Board. b„ offered a continual flow of useaiso began gradually to increase fuj pnri irresistible
products
b°tthe discount rate, and
its Open
better
as tV

fbat

obligation^;

tax

reposed in us, our trustworthiness
js eaually broad.
Simply stated,

money

for

tracts

for savings and
price. But. as the

right time made saving more at¬

initiative

against

builds savings of

announced that the Fed-

was

erai Reserve would

point, however, for what really is
lacking today to meet all conceivable needs are resources—labor,

system,

commission

bidding

raw

benefit of
the consumer and his family.
If
he can't,- or won't, buy what is
produced, .trouble
results.
Cer¬
tainly, it is important that each
family individually lays funds
aside for a rainy day, carries ade¬
quate life insurance and otherwise

ply of goods and services that cannot pos^bhy grow as fast.
Skill-

it

accounts;

•

is

nancial

I

charge

loans to benefit personal and bus

All the

in

in

more

absence of enough money to satisfy ah needs. This misses the

and

the

and

fully employed.

course,

stand against inflation,' have at the

not forsaken, the

bulwark

ducing

an

results

created to chase

are

of

tional inquiry into the nature, performance and adequacy of our fi-

the

them

in

Of

'

controls, the overflow
money and credit.
It is such

Tight money means to some the

omy

together,

levels to keep its plants

deflation.

by quantitative mone-;

na-

as

soul

Consumption.

^

conduct

service

and

owa

venting 1 ungovernable' inflation,
Consumption—or the consumer-

adapted and efficient finan-

direct

convenience: Everyone uses credit

body

of

sums
our

While the economy needs savings all the time, in the form ofmort*
to grow, we must also consume in gages; utility''bills; bread, newsorder to grow. And as plant and papers, or milk delivered to our
equipment grow, the nation will doors; automobile or television
have to consume at ever higher purchases on the instalment plan;

char-

national

enormous

are

neces-

and

power

our

We

While Produc¬
tion is the main reliance for'pre¬

tary

cial institutions. I believe the time
to

first

efficiency.

of

If

ancj

1951, after years
supporting the low-interest pol¬

Federal

is

supplies

sary

back in

was

of. the Union Message:
seek

mechanized

recogniZe there exists the

is

'

Federal Reserve System has at

in

Production

already examined
the
expanding plant capacity

first

the

in

hold

Taking

have

anij

has
the

and

life, that President Eisen-

come

still

discov-

easily avail-

more

Prosperity's Tripod

nation's

of

costing more

halted.

demonstrated

has

the

world

being

are

made

Credlt

proved

.

well

new

in

materials, while in

raw

parts
or

able.

For

of

issues

institutions

we

keep

granted.

hand

at

be-

trusted

is

us

by-others for important
money that we pay at

labor

revolutionary

energy

fine

never

as

petitive

This;1

commodities

and

price

threatened.
It

Today,
one
of

has raised their

of

a

nation's industrial machine can be
time in many years, there is sub-4 exoected to turn
out in thp future
stantial
protection for the purever-greater quantities of everchasing power of pensions and the better", products
to
enrich
our
fixed incomes of people whose instandard of living and -to allow
comes
are
not tied to the wage,
us
to. share our we.ll-being with
spiral. Let us recall what the ^it- the rest of the world.
uation was
in' the first postwar
The second leg of the Tripod
years
when
major
inflation

of

each

many

trust and trust-

means

iness interests, and in a
of other forms we all

ered

Federal

course.

decades

hower included the following recommendation in his recent State

growth

it

symbol for

a

It

the need for capital
expenditures noW has led to com¬

focus- greater

j

light

recognition
of
the
fundamental
place that monetary policies and
modern

is

nearly all

tne recent

on

economic system.

two

kinds

{!*

1.,

financial

process

high

present

into a depression, they will then
have to spend their savings to

Sumer

.

.

First Class Citizenship Restored

these

or

completely installed.

ot.hpr

of money and goods into balance.

of his forbears. We
other folks—mostly businessways

no

..machine

"save" the economy

consumers

the

sure to expand

finan-

cue

thrifty

is

labor

obsolete almost before

There

Eoard

It,

unit

manufacturing
they can hardly

my

me

new

made

is

inflationary developments
by
charging that he has forsaken the
hear

tell

lower

a

keep uptwith the rapid improve( ment in tools, machines and equip-

~

! r,

commancing

collar

consider what it costs governmen¬
tal

at

Some of

friends

rapid mechbring more

that .will

production

a

*"

The emphasis is on

supply amd consequent
cheapening of the value of the

o.ea

and.life insurance, and the market
and

running at

$30 billion rate.

money
Artuur

attack¬

ing; the purchasing power of savings accounts
value

now

"

,

•and -more, but only recently
the
constant
expansion
of

seems

be

to

.On

hand,

policy

our

higher

know more,

flation

improving

System,

post

been

one.

are

the

at

by

Variety of Credit

"

Credit is

.

a

possible

required

expan-

economy,

7.5%
of after-tax income, commeant just one thing:
xhere is a Tripod that supports
that it has restored money,
pared to less than $14 billion doleconomic prosperity:: Its thre e
legs ,
„„
,
„
,
.
position of first class citizen- are Production
Consumption and- ars' or 5,3^p of after-tax income,

and we
logically want
it.

levels

atom. Its peaceful applications are

close attention

ship in

omy

about

a plant expanIt is. the very fact

tome

money

the

and

for

now

program.

policy has

something

-happening

s

to

need

too much will have less.in the end.

-penditures

source

of

purpose

no

production and its

sumption

capital investment necessary and
possible.
A country that saves

rapidly from here
Congress any legislative proposals'on. We are blessed on this contithat might be indicated for the' nent by
an
enormous
stock
of

very

that

in

sion. Consumer credit makes Con--

that we have a strong consumption economy that makes so much

would develop and present to the

hard-and-fast

are

goods

dustrial

would not have made the expendr
itures he did, and there would be

was

how

matter

no

cial machinery.
Such
an
inquiry

formed

rec-

Credit that supports the other two.
Business credit makes possible in-

year

•

knows

a

sav-

sion

cheaply it is offered.
Everybody

in the middle of

are

con-

more

15

ing than he did in '54 and '55, he

and

money supply increase go
Federal Reserve for preventing

credit will not be used

or

■

If the

had. dope-much

sumer

on.such expansion and modernization in 1954 and 1955.
Such ex-

supply expansion and for consequent halting
inflation. Refers to the "tripod" supporting economic

be present

•

<

capital improvements.

plant
expansion.
Industry
spending about $23 billion a

prosperity—production, "consumption and credit—and maintains we are, individually, the world's best credit
managers.'Agrees great confidence in long-term outlook is warranted, but
points out confidence in the future and strong self-reliance
must

pretty

expenditures

constant money

of price

increased

look

me.

capital

Stating that economic growth and
hand-in hand, Mr. Dietz praises

What'are

such

They

ord-breaking peacetime boom

President, C. I. T. Financial Coiporation

T.

We

;

•

.

.

for

cnances

productivity?
good to

And
I.

to stop inflation,

way

Economic Prosperity's Tripod

C.

(679)

effective

^

savjng by the American people,
Pleased

Savings Was Not Larger

The First Boston

A. E. Ames & Co.

Corporation

|

Incorporated

Some

people

are

saying it is too

bad the

consumer

back in

1954 and 1955, so he would

have

more

didn't

save more

accumulated

savings

today to support the capital goods
boom. This is

ment,

based

a

on

the additional
lion
those

on

there

spending of $18 bil¬
goods back in

consumer

years

cession,

self-denving state¬
hindsight. It was

for

that

in

prevented

those

same

a

a

$15 billion decline in

spending and indusfor inventories and

trial

outlays

Incorporated

.

The Dominion Securities Corporation

BIyth & Co., Inc.

Lehman Brothers

Bell, Gouinlock & Company

McLeod, Young,Weir, Incorporated

Wood,Gun dy&Co.,Inc.

Salomon Bros. & Hutzler

Mills, Spence & Co. Inc.

White, Weld & C«>*

Nesbitt, Thomson and Company, ln*i»

Incorporated

Burns Bros. & Denton, Inc.

Greenshields & Co (M.Y.) Inc

Harris & Partners Limited, liwj*

re-

years

government

was

Ilarriman Ripley L Co.

Smith, Barney & Co.

W. C. Pilfield &

Co., Inc.

Dawson, Hannaford Inc.

16

The Commercial and Financial Chronicle

(630)

closer r

to

'

its

<

A956*57

THE MARKET... AND YOU
By WALLACE

on

likelihood that

a

end extra will be

STREETE

*
f

All the talk of inflation and

high
government
spending
driving the country into a de¬
pression tailspin came to a

has been

yielding better than
,

Expanding

*°

time

£old

stocks

have

been

-

'

also

was

being

which, .in

fact,

doldrums

the

in

ready

was

sort- of

some

setback

is

ltsVehore foi; 1956-57. So
attention has been paid

almost

ominously for many
weeks, showing little in the
way of reinvestment demand
with the turn of the
year

/■ among

definite ; caution
traders.

\

-

*

t

As

had

'

*

.

happened

times last year,

several

the 468 level

in the industrial
average was
the signal for some

It

support.

was

temporary
solo per¬

a

formance since the rail

ed Price
g°ld ^or
a generatlon that; Homestake s important expansion
*°

aver¬

The

at

from the

1

u a

funds

honesty really comes or whether organized
Just acquires a reputation for honesty,

labor

it

pessimism

driven

little

try which is still operating at

been

suit

of

the

,

timber and coal lands which
are assets that have drawn
favorable attention to other
issues.' Yet at recent levels,

marketer

Homestake has been available
close

at

to

an

West

the

on

important

and

is

back

now.

levels where

following

it

t h

1955

to

met

support

rather

Street,
$120

wide

both

over

of

because

the

liens that Gulf Oil

President's

e

heart attack. There

little

was

Coal

companies

are

gener-

the

save

Indicators.

Turn

Dour

were simi-

larly dour. The daily list c>f

timf. back, a"d

then operations have
increasing steadily,
pittston, for one, has a sub-,
^een

been the

far this year,

case so

10-figure range from which it
produces Something above 15
^
SG !ln^ WaS
million tons a year. Earnings
tirgeiit and volume,expanded jast
year came close to.douas the
offerings increased.
bling over the year before
the

trading list. broadened nut
j

and

there

able

were

to

Extraction

Glenn

the line

as the
trading favor¬
sagged. The brokers' recommendations, consequently,

ites

rather loaded with out-

were

of-the-ordinary names for a
change, such as Harnischfeger
Corp.

and

$10

the

par

pre-

too

long

stralt,s' ?? §r™'lnS raP'd'y }»
P°Pula"ty but ,,more

or >ts

exPa"dl"g missde w^k than
operations. In lac.,
tha company• is among those
that

nents

Growing Machinery Maker

not

in financial

participating in the

ferred of U. S. Lines
A

ago was

which

of

"

this

commercial; basis
much

the

first earth

satellite,

the

possibly

Harnischfeger is a leading late this Yearmachinery. maker which Bails
seems

to

have

thing of
and,

a

is

benefit from the

gr;am.

Last

year

larger

pro-

the company

support of

than

in

an

a

year

ago,

seems

show

even

better results dur-

line

ing the present fiscal
«

i

•

to

year.

^

The chief attraction to U. S.
Lines

that
the

preferred
the

lw

y

so

I,f£erd:

e

is1 the

dividend

more

last year

is

sheltered

fact

among

around,

earnings covering it
t)A o

248

prices

as

a

group

experi¬

oil

could

.be

?00<L statktical background
.°F, be'r
vers bu* d bas
£enerate much
erdbusiasm even where the
Pro.sPfTcts are above-average.,
?.S m
Maryland- Bai"
Jimore & Ohio, for one, seems
^ave turned something of
a corner and last ^ear its

4.•

times.

the

.

j

And

at

preferred




" is

and

has

upturn

benefited

in

that

from

the

Western

not-too-buoyant

carriers,

has been available

it

lately far

polities has been built

;;

-

.

his much

upon

leadership
It

V

•

in

the

labor

difficult ,to

point
uprighteous fellow. Yet there is no
labor movements today. 5I have never
was

an

in

revolutionary labor

techniques in

the Michigan-automobile revolution, of the

that

he

has

The serious

Reuther is not going to stand for anybody in
of insatiable ambition. .*> ■ \

a way

question

less difficult foi?

pro-Communist

'30s.

great feelings against Communism '
The best explanation is that the Com¬

any

philosophical grounds.

in my mind

is whether, it wouldn't be "

the country to deal with

in

his

position

than

a

dishonest

with

one

and

man

reputation

a

a

for

scrupulous honesty and anti-Communism.
When

1

we

speak of honesty in this instance, of course, we mean

who insists that there

be no shakedowns in his organiza¬
tion, in welfare funds and the like, and who is reasonable in his
man

Among the aircrafts theresalary take. f
;/
%"'■%/1
little general agreement, '
,,Th£ more one thinks of it the more one is inclined to elevate 7but individual issues hadn't
dishonesty to the higher attributes and;to s6orn honesty."The fact/
was

1A0+

fAllAurorc

lOSt ineir IOllO^qers

General

cases.

is that the CIO from its outset has been more spic and span in its
.bookkeeping than the conglomeration of unions that have made
up the A. F. of L.
This is even more disquieting when it is real-

specilic

Dynamics has '

been

chiefs

.

ized that the worst offenders have been in organizations whose

in

who

of

its

nuclear

latest

breakdowns

about 80%

,

work for him.

same

as

of the

some

to

and

another

for

intercon-

.

along

use

is

well

enough

that the company is
spending important amounts
so

production facilities.

on

[The
article

time

do

riot

coincide

"Chronicle."
as

expressed

7news

necessarily
yiith

Then

those
ore

and

at

this
any

of

the

presented

Michigan

(Special to The Financial Chronicle)

Mich. — James L.
Stock has joined the staff of First
of

Michigan
Corporation,
Buhl
Building, members of the Detroit
Stock

Exchanges.

the members

are

strike and to keep them on strike.

on

handling

demands

of

A.

upon

society,

union

who is

one

funds

but

who

scrupu¬

is

the

United Transit Co.,

C. Allyn Elected
Arthur

of

more

is

less

funds?
no

one

to the
winter

summer.

C.

He

Allyn,

is

former

a

vestment

Richmond, Va.

officer of

Bankers

the

In¬

Association.

Chicago investment banker, to the
Board

of

stitute

Trustees

of

of

Illinois

Technology

has

In-

been

R, M. Killie Joins

announced by President John T.

John Nuveen & Go.

Rettaliata.
Mr.

Allyn

is

Chairman

of

the

investment securities firm of A. C.

in

DETROIT,

Midwest

his

in

the

Atlantic Citv in the

Allyn
he

Company

and

has been
He

is

a

which

with

associated since

director

1912.

of the Consoli¬

dated Grocers Corp., North Amer¬
ican

Industries,

holders

and

a

high-toned organizations,

to take them

honest in

Election

.

those of the author only.]

Joins First of

most

employer, or one who
reckless but who is not so orderly in the handling of union
It is something to think about, although I am quite sure
will publicly lament the honesty that seems to be
coming
boys. Frankly, the leaders will still meet in Miami in the

missiles

tinental

and
so

up,

reckless

General

already stand¬
equipment for the Navy

ard

join

lously

be¬

Dynamics is definitely in this
end of the business, with one
of its

V
pretty problem. The labor move¬
ruthless business. Except in some of
a

Now who is the less dangerous to

ing phased out 'of the defense
program by newer devices.
Hence
the
leaning to the
and

a

teamsteifs. Neither

many cattle.
Recruitment of members is not con¬
fined to persuasion by any means. Brute force is used to get men

makers

are

as

nature, is

very

skilled

overly popular

planes

yeoman

blushing violet in getting

,

ment, in its

*

makers

way.

treated

aircraft
been

Teamsters

whose

formally endorsed Stevenson and did

Beck has not been any

Indeed, the situation poses
the

Pure

but

Yet I would much prefer dealing with Beck
any time than I
would with Reuther and I imagine General Motors would feel the

ness.

haven't

the

are

handsome salary and expense account from his
have his subordinate officials.

ings from the aircraft busi¬
*

just now, for example,
Congressional committee,

a

executive committee

earn¬

if

forefront

defying

are

leader,
Beck, has long been looked upon as a pillar of big business.
And he was one of the few labor leaders in the last campaign who
supported Eisenhower notwithstanding that the A. F. of L.-CIO's

show

of sales and

the

Dave

pro¬

still

Republicans.

were

To

pelled submarine business has
been powerful, although

Moreover, B & O has important holdings of the common

iPr<Jfe!Lred

'

lot of Reuther's

a

system.-Furthermore, he worked hand-in-harid with-

now

mies got in his way.

,

a

industry.

Maryland. But, like the other

in

schooling

achievement V, his way and it is

same

Individual Aircraft Favorite

.

The company
an important coal carrier

his

"liberals" in

doubt

I

a

on

and

honesty and his
kick the. Communists out.

to

Communist
the

accomplished at the
Range from the low-

missile

have had

earnings soared.

*

e

Rails

to

huge Federal

backlog

Statistics

year

line

doubled its profit

and, with the
even

in

construction

than

more

some¬

last

corner

moreover,

highway

sticky Despite Bullish

turned

Carlisle Barreron

*° hie
understand his aggressiveness against Communists.'

was

Mesabi

compo-

will, launch

has;

Russia and certainly in those days he had much admiration for the

.

Martin,

con¬

awful lot of

an

It is interesting but true that

labor

received

He

on

traction

hold

labor

were

■;more ruthless man in the

underway in Colorado.

nudging its peak price
desultory markets, largely
because out of mergers has.
and results for this year are
grown one of the more diver¬
Among the few brighter- being predicted at a couple of
sified companies that seems
facets was that the market
dollars above even the glowabout to break into the billion
still tended to hew to a selecing 1956 results,
dollar sales league. The at¬
tive line and stalwarts here
*
*
*
„

we

organized

there

the finger of scorn at such

,

grade ores available there in
profusion.
' »•

lows reached
a
peak sidiary, Clinchfield Coal, with
early December. As hasx reserves estimated Into the

new

smpe

shale oil

that

since

.

.

'Other indicators

ment

a

Pressio" some

day again

impor—

scrupulous

movement

purF

ally assured of higher activithis year than. last. The
industry as a whole saw the
bottom of its own private de-

for any further decline - ties
if the October1 1955
support

room

level is to

of

in

advertised

of the

range

million commitment ,in

romance

ally being projected as among
the few major groups virtu-

much

too

with which

combat

just that.

influence

chased and because it has the

if

if

assume

weapon

could

the fact that

do

to

Coast

Regarded favorably

was
a

UntOli

6%.

if

and

,

fornia which is

"

has been wilting steadily

age

influential

more

thugs and racketeers in its leadership. If theyare
cast out, what is to prevent labor from
taking over the government? Walter Reuther
and his particular cohorts would
certainly like

Suez

continuing

will

it

only

servatives

re-v

a

as

become

national councils. "For.years now,

our

the

above-normal

levels

to

snow

tance in
about

shutdown. Union Oil of Cali¬

uranium

likely

domineering.
It already has the eco¬
nomic strength. As something as pure as the

the oil indus¬

over

is

more

various

show

our strength as a global leader. But
it sort of perturbs me. Whether the

somehow

'

Reports

citizenry would be taken as a very healthy devel¬
relatively young but growing

country, plenty meaningful for the future and

engines and equipment to the
oil industry. if
;
*]
/
mut

our
our

in

adding to

supplier of

important

an

us.

opment

at lower levels. The company

is

of honesty which is coming to the organized labor
should, paradoxically, be viewed with alarm by the
Ordinarily, such a movement on the part of a large

rash

segment of

attractive

more

of

rest

times which, to its followers,

made it

of the News

de¬

it

depress

•

■

By CARLISLE BARGERON

heaviness

has been largely
ignored. In addition, it holds

into

V

-

-

'

and

finally

independent
to

O

%

movement

able

Washington

Ahead

,

L

market

and

was"

long-depressed only

the

^ven longer thafi the textile
1-ssues1* Homestake Mining, for
clearest of the explanations. one'
baf
°. carve out a
The
list has
been jittering range of as much as 10 points
That the market

for

i

*

Bessemer
of

out

mand

Producer

Gold

Attention

Pa*d

'

From

year-

.

head this week and
gave the
stock
market
i t s
roughest
in months.

Cooper

ran

5%.

*

r

.

a

paid, too.

*

>

,

now

quarterly dividend basis

a

with

Thursday, February 7, 1957

.

low

c

despite the fact that it is

.

.

sissippi

Co.,

National

all

of

Share¬

Chicago;

Mis¬

Valley

Barge
Co.,
St.
Louis;
Hart
Carter
Company,
Peoria, 111.; Southern Motor Coach
Co., Chattanooga, Tenn.; Municipal
Railway

Co.,

Continental

Tex.;

Youngstown, Ohio;
System, Dallas,

Bus

Virginia

Transit

Co.,

arid

Ronald M.
York

New

&

Co.,

Killie

office

40 Wall

joined the

John

Mr.

associated

Nuveen
a

sales

Killie

has

Street,

representative.
been

has

of

as

with

Nesbitt,

Thomson and Company, Inc., New
York

ipal

dealers in Canadian,

and

munic¬

corporate securities.

With R. S. Dickson
(Special to The Financial Chronicle)

GREENSBORO,

N.

C.

—

J.

W.

Berry Reid Jr. has joined the staff
of R.

S.

Dickson & Co., Inc.

Volume 185Number 5610

:

.

(681)

The Commercial and Financial Chronicle

.

17

/-

dence;; In the absence of the bank
rate cuts* Widely anticipated week

in

labor

the

foresees

period - of troublesome

a

^

P"

-

J ** "J'-"'

' <*•;, ^ /

^

.*•

"

*N

Jl.

i~'1

..

•.

:je

of

bankers

of

a*

epidemic

new

of labor trou-

There is

bles.

-

Mo-

the Ford

in

Works

tor

Dag e n ha m
'Where

pro-

has

duction

to-a

come

;

Salle

not

a

\

bankers < m£y,>:undeiy;
pressure, of public opinion,..accept 1
the, point, of view, that voluntary
crddit;'restraint; is; after;(all^* •the';1'
sibly ythe

.

:

H-.Vf''i"

-■'iJ ■•■vV'
M. C. Bundy Joins

Paul

Dr.

7

v

:-v

in the habit of saving,

are

nent.

in

There is

distinct stiffening

a

attitude

the

mated

the

of

Amalga-

Engineering Unions and of
matters of wages

unions in

other

claims.

the

By

look

industries

British

things

of
in

are

for

a

of troublesome labor dis-

period

right to the limit of their incomes,
that

Now

sterling

unions

Mr.

There

self-restraint.

from the fall in demand for cars,

number, of workers resulting

may appear

circumstances

absurd that in such
should

workers

sidering

during

that

.

1956

con-,

wage

rates increased by

with

7 V2% compared
increase in retail prices

an

credit must be
given where credit is due. The
position of sterling would have
by 31/2%.

Even

so,

had

there

crisis

addition

in

arising from the

to the difficulties

Suez

if

further

weakened

been

se-

a

in

thev

far

try

their

and

members

were

however, they reverted
previous attitude by in-

passed,
their

to

sisting
out

wages

on

by

unjustified

and

productivity

increases

any, previous

prices,

in

Indeed, during 1956 British industrial production remained stationThe

ary.

increase in wkge rates

71/2% created additional purchasing power unaccompanied by
a
exoansion in the

by

corresponding

volume of goods
the

is true

It

A. K

S

increase

corresponding
actual amount

paid

increase
a

measures,

overtime

in

the

other disinflathere was less
onH

losfi

in

1^6, and

introduced.

were

Tn

Owing to the

credit squeeze and

tionary

" e

of the total wages

industry.

by

in wage

cnmn

& Co.,

and

wages

increases

are

inflationary
than
those conceded
during the period of expanding
bound

to

be potentially more

output.

Year

rate

im¬

refavor,

their

in

in

many

more

spheres,

workers

encourages

the

Yet

Although
sure(j

the

wouici

In

Dividends in

prices

was
This

comparatively
is

due

denial exercised by

sjow

large number of firms




the

1952

V-

:

.Special Assistant to the Administrator of

was

served

Authority and Defense Production Ad¬
He later was an instructor at North¬

Chief

as

Price

The

new

*

■■

■'

-

■

with

the

OPA in

war.

in New York.

He was

a

Lieutenant in the Air Force during

war.

1'

On Feb.

National Association of Securities

Dealers, Inc."

Economist

Lieutenant in the Navy during the

was a

Merrill Lynch to
Admit New Partners

''

28, Jean T. Beane and

William L. Kistler, Jr. will retire
from limited
partnership in the
firm.

-

-

office will be located

in the First National Bank

ing, St. Paul.

'

'

v

•

Merrill Lynch, Pierce, Fenner

Build¬

Customers Brokers to Hear
The

1

Association

of

Customers

City, members of the'New York
Stock Exchange, on March 1 will Brokers wilL have Royal Little,
admit
Milbank
McFie
of
Los Chairman of the Board of Textron,
Angeles to general and limited Inc., address the group on the
partnership; La Rue F. Applegate, current position and prospects for

McNeel-Rankin Formed
Ga. — McNeelhas been formed

ATLANTA,
Rankin, *.Ind,

&

;* Beane, 70 Pine Street, New York

;
I. Grodin, Finley J.. Ise- his company. vAll members .of the New York
Edgar W. Kann, Edmund
C. Lynch, Jr., Lyman R. McFie, Society of Security Analysts have
ness.
Gillette K. Martin, Dwight Robin-- been invited.
Neel, President; John R. Rankin
The
meeting
will be held
son and Wilbur F. Smith to general
III, Vice-President and Treasurer;
partnership;
and
Edgar A.
G. promptly at 4 p.m. at the Down¬
and J. M. Palmer, Secretary., All
town
Athletic Club, .18 West
Bright, Robert E. Craig II, Ruth

Samuel

with offices in the Candler Build¬

..

man,

engage in a securities busi¬
Officers are Eugene E. Mc-

,

-

were

G. Kistler and Genevieve S. Shat-

previously with J. W. Tin-

ford

dall & Company.

to

limited

Street,
Feb.

partnership.

Thursday,

17th* Floor;* on

7, 1957.

to

of

an

oil

This announcement is neither an offer to

the government
industries
that
no

reas-

there

in

cuts

further

concern>

sell

The offer is made

New Issue

nor a

solicitation of an offer to buy these securities.

only by the Prospectus.

_

oil

$18,000,000

of the clearance of
is giving rise to
Substantial increase in

pace

guez

Canal

Carrier

unemployment resulting from fuel

shortage cannot be ruled out.
nromkim?

start

the

to

4^8% Subordinated Debentures, due

slightly towards tne end ot Jan
uary- Most of those who are short
in sterlinS a?he sti" .f1™
cover' even thouSh 11 should be
obvious to

Corporation

1

N^ YLr Serlin^ weakened
^fghtlv towards the'end'of Jan-

February 1, 1982

(Convertible to and including February 1, 1967)

them that, whatever

in the long
["^ecenfbe'^ar^^ore^hl^adeprospects may be

Price

cei^fLuard sterling in the
pPssiblv the weaker
Jhort may bePossi.bly the untavorrun
the ^eaker
tone
due to

in

101%% and Accrued Interest

^ate

change in the attitude of la-

bor.

Even\llowinf for that factor,
greater part of the fh-st

halfof

the

year.® For

one thing,

such other

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

'

owing to the incidence of tax pay-.

^^su'ally^wftne'sTdilAa!
^3" treL

l^siL
of

the

which

is

iargely

for the seasonal firm¬

sterling and
gold

the increase

during

reserve

the

Lower Bank

Harriman

Rate

February 6,1957.

Anticipation

paid rate is

now

of

a

lower

Ripley & Co.

Incorporated

first half of the year.

mod¬

to the selfemployers. A

Woodard, Brooks
Bundy and Park,

supplies
during
February
and
March, the inadequacy of oil ship?ments from the United States and

in

spite of this the increase of

erate.

very

1957

-'r

their

dictate

to

possibility

be

ness

Lower

jvA-lv

Mr. Strauss was born in Richmond, Va. and attended the
Virginia Military Institute and the Graduate School of Business
Administration of New York University.
Prior to joining Stein
Roe & Farnham, he was with the Chemical Bank & Trust Com¬

He has

pany

-

eumstances

member of various economic

Chicago and is a graduate of NorthPrior i td joining Stein Rue & Farnham, he

Production

and

Chicago. He

with Harold

shortage remains a grave menace,

grand total of wages in 195B was

ICn01suX?h"

Strauss, Jr.

terms.

some

"S so^fhl

aisinflaany

the
motor
concerned,
may

trend

this

quite

increases

the

once

proportion to increases m

of

is

New

the

And

willing to practice a certain degree of selt-denial.
The moment
the acute phase of the crisis has

of his

head

1950 to

western

Inc.

hope ing to

Demand has in fact revived since

change in the attitude of
organized labor must be attributed
to the improvement-in the situation. In face of a major crisis the
unions

as

dustry
verse

at

measures,

very

a

may

of

relaxation

tionary
as

They

position.

the

that

in

not

now

are

strong

ries of strikes.
The

they refuse to realize
face of fall in demand,

hand, that
that

M.

ministration in Washington.

be

prepared to accept a fraction of in a mood for striking, but they
the wages increases they- had de-. are so used to having the upper

conciliatory,

associated

been

Bundy,

discontent caused by the laying off
a

a

.

National

the

Mr. Bundy has twice served on
trifling reasons.
In
board
of
this respect the strikes at the Ford the
governors
of the
Motor Works may well prove to
Twin City Bond Club and on the
Four
committee of -the
be a forestate of things to come.,, District

0f

Z.

Assistant to the President, of Mathieson Chemical Corp., and

was

-from

for

strikes

L.

attended Oregon State College

born in

was

western; University.

M. C. Bundy

Co., for the past 19 years.
also

Wood

tude.of; most unions was exemplary. There were hardly any major strikes and the unions were

Admittedly, they could

been

Paul firm,

&

The immediate cause was the

manded.,

has

and
St.

E.

putes.
' -»
Throughout the Suez crisis and
its immediate aftermaths, the atti-

well afford to be

own

also

is

unofficial

of

likelihood

m0re

Cohen

of Seattle,

,

Mr. Cohen

Bundy has been in the in¬

need

the

feel

longer

no

ceased

has

danger, the

be in immediate

for

native

,

.many

to

a

-societies.".;..

ST.- PAUL, Minn.—Cruttenden,
instances they will have \
Podesta : & ; Co.,. announced
the
to be reduced in 1957,. owing to;
the
self-imposed5 reduction" oft opening of a branch office in St:
profits in 1956. This means that Paul, Minn., with -Mahlon C. Bun¬
.'
U? r'
less will be available-to classes dy as Manager.

believed

ke. lrni.111-

is

-Air<Force from 1942 to 1946 and is

Crulfenden, Podesta

years

V3

Paul G.

Bates

James

Bates

the University of Washington and later.'the .University of
Chicago where he took BS and MBA degrees. He served in the

which are in the habit of living

are

\

Mr.

and

standstill,

Einzig

,

Rex

■

vestment securities business for 37

strikes

Jr., announced.

high

figure for. such, a long. period./Pos-

while more is available to classes

Other

Stein,

year ago

a

complete
I
'

Sydney

by

so

and to- maintain it at such

to become reversed as a result of
the more equalitarian distribution
of the national income brought

which

investment counsel,

Street,

to' restrict

the bank rate to 5y2 %

:

tionary trend," this effect is liable

in

1

CHICAGO, 111.—Rex ..James Bates and Paul C. Cohen in
Chicago and L. Z. Morris Strauss, Jr. in New York have been
admitted to partnership in Stein Roe & Farnham^ 135 South La

squeezer It is this attitude which
compelled the government to raise

l.^'a 'full-scale about by" smaller profits.-* Divi-^
(i stoppage at dends remained high in 1956, but
•

»/, «jfr

free will with-,

own

smaller of two evils.

result

V-J

high bank rate and official' credit

.*

*

^^ ^

the

being compelled to dq

out

-r;LONDON, Eng.'-^The improvmg ihe additional wages out of proft
biisiuessMtreud itiB)dtaihAhaf hast its- instead of adding them to the
*?V
J
'A li-U
"

in

reduction

credit of their

Attributes weaker sterling to labor's
changed attitude but believes, seasonal firmness of sterling
will take plane as usual and, though the rising Stock Exchange
trend has< slowed- down in the absence of bank rate cut, that —
r-^lthe bank rate'wHf'be reduced in thek not too distant future. '
<*** -'L

Stein, Roe & Farnham Admit Three

■

on

Exchange

rate

luctance

Canal clearing progress.

r':>

trend

ing volume of criticism of the re¬

inadequate oil shipments from U. S. A., and slow Suez

u

rising

the

too distant future. There is a grow¬

compared to Suez crisis audits immediate aftermath, and a
reduction in dividends in 1957. Author comments ron effects
of

Stock

bank

marked change in attitude

disputes for British industry, a

week,

has become
more
restrained. Nevertheless, it
is
reasonably safe to expect a

PAUL'EfNziG

By

Economist. Einzig

British

after

bank

somewhat less in evi-

Hemphill, Noyes & Co.

13

The Commercial and Financial Chronicle

(682)

i

.

'

•

' •

.

the

Common Market and

recall

employed

that

1950

in

-

Institute for Reconstruction

one-third

refugees.

were

market would have beneficial effects on trade
Europe and the United States, and that "under no

common

pean

between

!

S

circumstances should the

creation of

the contrary,

skilled

v

which would bind free world countries to respect

it

I

shall

be

"sconomic

the

of

aome

discussing

recovery,

German

least

at

or

essential

devei-

pinents responsible for it.

i

"s

There

Through these programs, Ameri¬
taxpayers made available to
the German economy .the vast sum
of

complicated

million.. You made it
for us to buy urgently
needed food, fertilizer, cotton and
$3,200

other

.xtory to draw
I canhope to

uot
e

xhaust

fhe
)[
"

all

could

must

i

tion

that I will
u o

t

e x

h

a us

t

of you.

uny

Nearly 12

Dr. Hermann

Abs

fered total defeat. She was divided
into

The three

occupation zones.

Western

in
Frankfort for that purpose.
This
Corporation, in 1950 alone, in¬
vested about $430 million of Coun¬
terpart Funds—an amount equal
Corporation, set

zones

united

not

were

outside

the

interest
ments

up

of all medium- and

coming
from
Today, the

funds

long-term

suf¬

Germany

Loan

to about 22%

age,

years

it

foreign

held

the

represents

exchange

total

of

reserve

the

While the Ger-

exchange

assets

are

entirely by the Central Bank,

in other European countries there
are

substantial private holdThe Swiss, for instance, hold

very

ings.

country.

amortization

and

pay¬

these funds continue

on

.

private

holding

that" of

of

The

first

70%
rind

destroyed
least

to

1945

from

years,

difficult indeed. Nearly
of our productive capacity
transport had
been either
were

susbtantial

a

dismantled. From the

or

12 million refugees wno

came

bad to be settled in Western Ger¬

already densely
populated with 2.3 million apart¬

many,

ments

ber

area

an

destroyed.

is

equal

The latter

to

the

num¬

combined

.

housing facilities of Germany's 11
greatest cities. Under these cir¬
cumstances, it

not surprising

was

that many lost faith in their future.

flux

German

people were

rtruggling to regain confidence in
themselves, the United States beto

/;an

the reconstruction of
this

was

dence
lary,

us,

that

which

called

this

natural

I

dered

Some

have

to

to

country,

my

we

simply

could

by

do what

had to do.

'?

The

reform of June,
perhaps the second most
important factor in German re¬
currency

It

covery.

jrossiblv

indeed, and
that onlv a

was severe,

it

is

true

free

with

only

$15

in

his

that

debt,

prewar

a

pre-

requisite for Germany's return to
the
world
tV u*
a

Debt

market

I

want

marfex'

.

,

^3/0/5% t°in May'igSfTsince
r.l,° 2m iVAay iyD?- fV £

the currencies
ha«?

J-iie.proDiemoi ngnteningcredit
terms has been extremely vexing,

eluded
eluded

Israel
deht
debt

and
to

the

been

lie,-,

lion

reduced

ci

to

hu2

+?„f

States,

$3.2

for

funds

,

.

incidentally,

Therefore

But

of

market economy.

that

a

of the establishment
It

in¬

was

itiated by our courageous Minister
of Economics, Prof. Erhard. Very

early, he freed the German

the shackles of controls
ceilings which had, up
seriously retarded the
private initiative:

from
and price
till then,
growth of
There

which

econ¬

are

five factors,

then, to

u". ,Md

reform; the establishment of
the challenge

rency

am

glad of this opportunity
gratitude of the
for the GARIO

and

for

•An

Annual

Council,
caerce,

Marshall

address

by

Mr.

Plan
Abs

before

aid.
the

Meeting
of
the
United States
International Chamber of Coin-

Jan. 17, 1957.




German

investment

problems,

Korean

it

boom

became

ingly clear that

the

^esired so ution, of

the

"investment aid"' is
interesting one.
During the

an

7

i

increas-

basic

indus¬

4n

iS- of

cours|(

coim'nrt

iron

the

general

because
result

to

To

prices

Germany

in

"investment aid

dustry,"
It

was

for trade and in-

provided
together
relief,

tax

pansion
during

with

made

a

ex-

industries

1953.

While the

of the law

favorable,

the

basic

1952 and

esults

substantial

possible

the

of

the

as

passed early in 1952.
for (special)
loans,

-which

i

were

number

generally

of

firms

in

the

contribution

million
Now

some

offered

by

refugees.

let

me

sketch

to

try

of the concrete details of

economic

in
our

lack of

capacity resulted in
increase

in

the

a

f

capital

of

was

rose

to $19

billion in

1949.-

nearly $40 billion in 1955,

and the 1956 figure will be higher
still.

During

the

of

record,

I

The tax
$500

of

"

these

and

of

these

measures,

short-term

been

some

funds

not

long-term

The
of

tax

Dec.

the

that

funds
last

still

definitely placed among priinvestors.

vate

as

have

bonds

has

two

•

privilege

been

years.

.

repealed

was

31,-1954.
source

industrial bonds.

198%

constantly

This

of

reduced

It

1956 that it

was

for

not

again

possible to place $120

meant

investment
the

until

became

million of

They carried

an

the

purchas'ng*

j

also need

we

at the

we a

co-ordination

in

e

d

*f

ig--

reconstruction

policies.

through-

market

common

is

principal

a

topic of discussions. Generally tne

m.tnarp? Lp

P'a" 18 conceived only as a common market combining a number
of continental
West

|

European

s

that monetarv Dohcies of the

^

cen-

themselves,

remove the dan<,ers to stable

that arise from

field

financial, social, and

mod-

1

granted

.

Lcre"

pres-

the

out Eur°Pe the concept of the

de

wage

comnarativelv

ira!e i/re/es

of

power

'S r6aUy n0t ?uc'1 a bad

economic

while

durin/the

mands

wage

countnes' especially the

six

States forming the European Coal

nrice^ and Steel Commodity,- wnich are
France<" Belgium, the Ne.herlands,

boosts of this

^Luxemb°urg, West Germany and
t%de and industry ma/be in Italy' 'Within West Ge™any, I
a

position to grant

increases

wage

^

can reP°rt that government, trade
and industry< a"d Public opinion
a11 are entirely favorable toward

of%strict^d credit''
R.1?
/ch i//ases lead inev abh to iuch a-project. The neighboring
^manSs for higher wag« i/the ^viet-co,oWolled countries are
demonstrating especially to the
less f&rtunate sectors,
t

,

...

„

a

In tact, if all
parties trv to

Germans,

,

keep

™

thf »ro>vth of productivity

re-

correspondence
between
the
of prices and produc-

movement

tivity.

:

.

so

far

be satisfied

to

had

we

with

developments in the field of monetarv
policy in West Germany,
Our

have

has

currency

greater

ot

tries.
But it
the
currency

retained

a

of

stability than
many other coun-

measure

those

the

shortcomings

national economic

our

market

Wief
wiU

remains

true

problems

that

of

our

not

It

onl-v

political
the

This* is

concerned.

sired

also

amon®

of

areas.

Common

enhance

but

economic
operation

co-

countries

ardentlv

de-

by

ioritv

the

overwhelming

of

mv

fellow-rountrvmpn

Obviously, the

On the whole, however,
reason

small

W^* *

suits in lower prices. We must see
to it that there is always a proper

mat-

a

to be diverted into capital market

increased

to

had

as

exemption caused

million

July.

80%

privileges

enacted in 1953-54:

period, from
1949 to 1955, industrial production
same

from

hardly existed,

cautioned against

living.

functioning

was

it

revive it certain tax

To

had been almost vanishingly

small,

market

indeed,

The

scarce.

of

of monetary,

Policy

policy

be

To

encourage *r those

moment is greater internallUndl

_

fhf l! L/

quarters.

extremely

was

poorly,

productive

considerable

cost

days

ter

What Germany Achieved
our

in many

Needless to say. capital in those

were

development.

At first,

It

criticized

C0Untries.

At the present moment

The

bottlenecks.

fixed

law, known

a

expansion

capital.

numerous

for their ;• products
industry was unable
expand through self-financing,
remedy this serious situation.

to

Wage

with

pace

need ,tor
of

_

of

would

What

industries,

keep

lack

of

was

Since

steel

and

unable

were

^

he

the

that

say that a gradual deteriora-

tion

more'popular,

saving

it

sure,

§ope £ makfng ent

the

WAWA

number

a

nJL S|y
tiling'

+ho

ram

On

believe

not

in§ some countries, with comParaUvely hard currencies, revalUate thdr exchange rat€s- Such a
steP. would surely not reduce the
inllationary tendencies evident in

j-eaSn'^fo^granting tax'prfvileces

tries, especially the coal, electrical
and

sav-

I do

U"IC\ "d"u» 1 u/ "UL oeiieve mat
a satisfactory solution Ties in hav-

course,. wbo

capital

story of

market economy;

and
12

cur¬

our

and I

to express
the
German people

and

area

„

?n»e

both moral and material:

years

the generous

of

the

,

view

the

excnan0e ratesican pe

,

hand

tn

only^Dernetuate

.

with

maintained, effectively.

we

is to achieve a higher ratio of

Capital Shortage

In

leading roles in tight financial circumstances found
speedy economic recovery of difficulty
in
making
necessary
Western Germany: American aid, payments.
law »ras therefore

material help of the United States,

was

•

a

Overcommg

I attribute

turned slowly toward normal. The
national product, which in earlier

A third factor

c%

,

the

Early in 1949, however, conditions

pocket.

v

.

svmoathize

stable exchange rates

n

thinir

I

,

improve

not

a relucVaillPrr >1V

nvpr

f?
sympainize wiin tne view
that sucb adaptation should wait

and agriculture.

li

do

T

j

t
j

adant

tn

eon

to

..

,ho

quarters,

some

111

tanrp

acmanas tor iunas to con

t;/cnn f r
11 a iispol'ta 11 o

the past
Thr»r* ic
lnere is

ianc? la aaapt over valued carrencies to changing circumstances.

tmue the improvement of indus-

brl-

Tneiricntaliv

billion,

demands

.

on

it jnvoives tbe Dull of

inv°ives ltVr P^-!, I p
P°site necessities. We still have

in-

whieh
which

ctates

from

hininn

o

$1.2

They

navment to
payment to

postwar assistance

United
United

the
the

to

had

-sarin million
$8UU million

a
a

j3ecaug

during
<dnw
slow,

heen

years

London

u

payment of $4.3 billion.

as

possible

was

oecause

omy

.

ro?|Yo/ar^

Agreements, which bear my;,

were

stress

to

reconstruction

a

West

European - industrial
countries./
The United Kingdom, and espe- '■
cially the Benelux countries, export relatively more than West
Germany. I call your attention to

then *t has been reduced to 4%%. ^..7,
Donaon
^e problem of tightening rrpdit stl11'

The

«;i?nature
signature, finally' nrovided fnr the
iuiaiiy provided tor tne

in¬

an

only

of

only

military government in a defeated
country could have executed it.

scratch

see

of your great country.

All surplus money was eliminated.

Every single German started from

Germany,

could

some

beyond

Fifth,

other

Adaptation of Exchange Rates

the settlement of the

was

German

refugees

merely
serving
ourselves.
And
they
brought to Western Germany a
spirit of enterprise equaled only,
I believe, by that of the pioneers

a

1948 was

million

12

heavy burden.

centive

of

in-several stages raised',the dis-

can

^

contrary,

recovery

one may

l>elieving that
we

on

economy

people

miraculous,
point to many
causes, and
first among
place the help you ren¬

but in fact

these

German

new

'

adver-

the foundation

was

the

built.

was

confi¬

of

recent

your

in

Germany. It

demonstration

in

belief

her

demonstrate

that

number

a

I-believe they immediate y bene0UF neighbors, and that we in
turn have every reason to welcome their, progress.

sum

I believe, on the
that they were a great
blessing. These unfortunate peo¬
ple
had
come,
literally
with
nothing but the strong will to
survive.
They presented to us a
moral obligation to be met, an in¬
a

Accounts for German Recovery

While the

that

to Western

came

the

Also private consumption has increased. In the effort to keep future expansion within the limits

insistent.

more

social

1948,

is

of

conditions are ( essentially sound.

volume

_u

.!

trade

case

has increased demands for higher

.

the

f0

tioned

the

investments

As

far the grand total of $4.3 billion execonomically until after the cur¬
on
invesfmenTs
new investments in the Republic.
actly equals the amount of foreign
meaSure to tighten
rency reform of June, 1948.
The
To
exchange held today by the Ger-,
Eastern
so
territories,
which
had Among the recipients are ccal
would
exman Central Bank.
Of this total
1 een Germany's main food basket mining, iron and steel industries ;
istin« bottlenecks and create new
$1.0 billion has been repaid and
and public utilities.
and
the
oneso It would also increase "social
principal
supplier
of
There is a fourth reason for our the remaining '$3.3 billion is paytensions
mciease
many raw materials, were cut off.
able over a period of 20 years.
*
■
speedy recovery.
I have men¬
iind have remained so.
represent

foreign

in

.

too great.

demonstrates' what

importance

than

these facts not by way of cornplaint^-we Germans recognize the
share of responsibility that we
ourselves bear for the d'fiiculties
we face today. I do so father because I belie've that the efiorts we
are making to increase our prosperity and to improve our social

billion in the U. S. A. alone. avages have become

have.

that the inter-ramifiour

United States, but on the other
hand, it is "considerably less than

;«

We are'today faced with an ex-,
ceptionally high demand for capital. Though the formation of capital as such probably is not lower
in Germany than in a number of
other industrial countries in Westem Europe, still there is little
hope for lower interest levels in
the Federal Republic at this time,
The demand of funds for urgently
needed replacement investments is

other assets

figure

of

greater

poorer

./...

and

This

cation

Capital Demands Still High

privately owned securities, bonds
to the amount of

It is true

-

population.

.%

,W

the

no reason for

Funds,

of these funds by the Reconstruc¬

story
enough,

rhort

billion.
billion-in -:

$4.3

Ge"/osi^//cnoLmiacUdeeve^

I

lave made my

long

of

Central Banks, is mislead-

which were
largely made available to the Ger¬
man economy for investment pur¬
opments
poses.
Very good use was made

hope
that

so-called

from

made

be

reform,

currency

Counterpart

material;

instead

the

in¬
payments for these supplies

ternal

of

*

roughly $4.3

of

$2.8

materials.

raw

After

from;

means

German economy.

possible

and

long

a

the

foreign

can

Otherwise

Ob the

Occasion-

it.

the

beyond

for

man

believe that there is

public

finance

must

section

figure

ropean

convertibility.

still

1955

foreign observers have regarded this rate of expansion
with some concern; but I for one

Because

rates,

construction of homes.

sound when compared
the. holdings of other Eu-

ing;

1956.

In

ally

have to be raised far

the

may

with

and protect

private property and other rights of foreigners as much as
those of their own subjects; and regrets lack of currency

in

rents would

Lander,

gold and foreign assets, impressive*
as

30%

to

This

,

authorities

to

high interest

Bank, increased from $90

million

Pleads for Magna Carta %

by 12 million refugees.

the

German

Central

recovery

1950

of

50%.

of the national product.

from 7%

rose

almost

total
value
of
exports
amount
to
approximately
15%

marketed,

were

total securities sold

jn

gold and foreign exholdings
of
the
Bank

more

by

the

capital
normal, $600

percentage of stocks to

great shortage
1949 ,to

panded

195%and

the

in

Foreign Trade

„

Our-foreign trade volume during the past two years alone ex-

issued

were

But during

shares

of

the

From

a

labor.

stocks

any

conditions

as

.

;

.

market became

the

1956,

by customs tariffs." Mr. Abs attributes
to U. S. aid, currency reform,
market economy, and the challenge and contribu-* %

a

tion offered

1956,

,

1954.

Thus

Deutscher

the rest of the world

Germany's economic

'

million

change

market be sealed off from

common

before

These 2

and had to be issued

coupon

Hardly

2

working population.
Today,
there is practically no unempldyment among the able-bodied, but
on

-

had

still

we

8%

at 98%r.

You may

million unemployed, of whomabout

of

Leading German banker maintains that the proposed Euro-

|

of

by almost

the

Commerce

Member, Governing Council, International Chamber of

I

number

rose

million represented almost 15% of

By HERMANN J. ABS*

Credit

level. 'The

1936

persons

4 million to 17.4 million.

World Economic Fundamentals
Vice-President,

Thursday, February 7, 1957

.

.

•

•

iiropean

.

pro?ect

ma-

will be far

from

easy to
put into practice;
differenced in the habits of every-

day life among European nations
are
sary

call

very

marked; and the

structural

for

considerable

Even with the

velopments,
common

neces-

modifications

most

favorable de-

realization

market

will

sacrifice,

will

of

the

come

only
extending

neighbors

by

weIi-

over a number of years,

are problems for us as
1 sincerely hope that fur-

consecutive

steps

ther development of international

We have noted with great satis-

fu-

faction that the United Kingdom
now shows greater willingness to

cooperation

will
.

,

f
which

can

progress

only

of all,

in the

near

2pnIjine
-

„roSreSs

.

;

.

consist
.

'

the

m
,

establish close relations with the
common market of the

continental

European countries by adhering to

Volume

185

5610

Number

.

.

The Commercial and Financial Chronicle

.

#

free-trade

a

this

zone
agreement.
If
materialize, it would
eliminate the fear of

to

were

definitely
fresh

Under

should

the

sealed

world

receive

the

tariffs.
hardly

The

towards

economic
should
also,
in

strengthening
tions

world-wide

a

and

the

convinced that

for

the
common
the European continent

prospects

market

on

good and I

are

approval
if

cerned

An

easing-up in
market

tight

countries

essential

facts

half

of

1957,

current

ulting

c on s

"(1)

of business activity may be
expected at least for the next few

ical

^

Bank, declares

forces

in

this

connection, I want to
strongly recom¬
the export of capital for

are

report on

a

"T he

stress that I very

"Western
The

>

Germany.

total

West

lished

million,

German

the

by

mainly

invested

strong.

American

economy

Disposable income is

increasing;

personal

expenditures

outlays

underlying,

consumption

high; capital
corporations for new

by

are

1957

plants and equipment in
estimated

and government

in

reversal

credit

policies

lies

have been permitted to
private foreign investments,
buy foreign exchange, foreign

the

basic

reason

in

in

the

the

in

Federal

to

are

year's;

spending—at the

local

and

levels

goods and services

swing.

last

exceed

are

must

one

dynamic.

always

Expenditures for

rising;

are

bear

in

economy
re¬

products

new

labor-saving devices are con¬
stantly being developed; and the
mode of life and buying habits of
the American people are change
ing.
A, free economy is sure to
have

its

W4V_

for any

The

capital

affiliates and agencies of
firms. As of May
1956,

overseas

pub-

bank.

export amounts thus far to about
$300

Year

Ahead,"

,

German

Despite the uncertainties

engendered by international polit-

difficulties,

and

wages

and

A continuation in the high

months.

rising

that the American

search

level

*

mend

is

The

recognized.
In

mind

economist to
Hanover

to

Finally, in considering the

future

>

Summing Up

may

Dr. Marcus Nadler,

duly

are

policies, v reduced taxes and other/

be ex¬
pected sometime during the latter

con¬

-

the

money

"(7)

after short-lived readjustments,
"dynamic" path.

its

check

a

prices.

economy,

on

certain of the

am

all

of

our

par¬

ticular, have beneficial efffects on
trade
between
Europe
and
the
am

credit

eased

factors keeping

rela¬

of

United States. I

foresees

and

should

market

common

as

ment-ending of the current boom during the latter half of the
year. Dr. Nadler doubts any decline will go far or last long,

approval of GATT.

contribute

high cost of doing business are
likely to have an adverse effect
on
the profit margins of many
corporations, and this will serve

Hanover Bank's consulting economist anticipates high business
level to continue for next few months and a rolling readjust¬

the

of

rest

by
high
custom
incidentally would

These

'•>

the

from

be

market

common

off

Readjustments

for

—

the up-

on

All these factors plus the

UPS

downs

and

and

'swlnf*f **} business activity. These
reyect changes in tastes and techno^°Sy, excesses_ and other

eco-

t

*

SAN

to

Marcus

which

Germans have had

we

in

t h

in

econ¬

e

to

come

Factors Prompting Change

small, but I do

overtaking

two main rea¬

see

it:

Pacific

changes,

end

an

sometime

country.

strong

mamed

its

and

The second,
sive
reason,

and far more deci¬

however,
derives
previous
experience
with
foreign investments.
</

from

There

authorities will be reThe availability of bank

monetary
credit

will

trend

ward

be

tal

future. We must develop

grams to

of

sense

a

this

in

depend

our

interest.

own

solidarity for

greater

on

We

the very preservation of our way
of
life.
Recent
events
have

demonstrated

the

need

only

too

clearly.
There

is, in

the final

substitute

no

the

right

affairs.

could

in

or

thousand
tracts

good

management

We

homes

for

and

faith in
of human

live

not

in

our

communities if

our

implied

one

not

were

analysis,

made

a

con¬

and

kept.

We rely upon a shared respect for

truth, for law, for the rights of
.others. We must not forget that
these principles are not natural
facts but they are achievements,
and that they are as indispensable
nations

among

within

as

nations.

line

In

with

suggested two
revive

the

which

all

world

these

markets

years

idea

of

countries

would

bind

we

the

John S.

much

those

as

their

of

Such

port

has

Magna Carta will
free

the

sup¬

world

viduals
and
vested
rights as
principle of the law of nations.
United

proud

of

States

a

indeed

may

the

example it has
given to the world in upholding
the principle
of sanctity of in¬
dividual rights. The
attitude of
the American people has earned
you the deep respect of the old
world and your actions will pre¬
serve

that

it.

It

is

freedom

from the earth

nations

taxes

is

"Although
higher government
spending — particularly in regard
to the proposed 'Eisenhower Doc¬
in

trine'
tend

to

of

a

East—would

Middle

the

tax

the

discount

cut

the

in

possibilities
future,

near

setback in the domestic econ¬

any

firm

find

my

sincere

shall
so

not

long

unity

as

in

belief
perish

the free

the

ele¬
in

mentary principles of law and

respect for human dignity.




since

is

1948,
a

now

limited

partner,
and
John,
Raggio.
has

been

mitted

ad-

a

as

T

genera

H i s

partner.

As

John Raggio

limited

a

as

John

partner,

^

ac^jve
j0jin

_

with

the

1931,

in

an

firm,

was

association

Raggi0,

ijavv.

one

is sure to favor a lowering of
taxes," he points out.
Nadler

Dr.

deceleration
of

foresees

in the

gradual

a

upward swing

the

price-wage spiral in the
Increasing Competi¬
and the high
cost of doing
ahead.

year

tion

business

are'

effect

many

likely to have

and this
to rising

corporations,

serve

as

ad¬

an

the profit margins

on

check

a

Short-Lived

decries

the

war

about

of the American

econ¬

made at the

the future

end of the

essentially

"Dynamic"
he

of the U. S., system,

character

commodities

still

in

likelv

not

are

,

„

American

people

are

changing,"

Dr. Nadler asserts.

The swings
that

and

technology,

other

a

free

economy

economic

excesses

forces,"

he

and
con¬

cludes.
In

summing up the outlook, Dr.

Nadler foresees:

University

has

Mass

Rosalind

ujn, Mass.

in

of
the

•-

(Special to The Financial Chronicle)
BOSTON

been

C. A.

P

Kosaiind r\

for

the

past

Koenig Opens

RUTHERFORD, N. J.—Charles

Brooker has Domed the staff of

A. Koenig, Jr., is engaging in a

street.

9

On

Lincoln

Avenue.

tight and the demand for capital
is running ahead of current volume
of savings.
The volume of
d

consumer

b t

e

outstanding

large, and, while
still

exceeds
in

crease

"(3)
in

the

indebtedness

is

the

that

not

be

may

likely

to

$26,000,000

go

In all probability,

business

of

pattern

to

has

decline

last long.

sume

offering of these bonds or shares for sale, or an pffer to buy, or a solicitation of an offer
buy, any of such bunds or shares, the offering is made only by the prospectus.

not an

(

offing

or

This is

in¬

repayment,

total

Any

the

far

is

borrowing

new

slowed down.

will

characteristics

as¬

of

Stanrock Uranium Mines Limited

a

"rolling

readjustment"
of
the
magnitude witnessed during 195354, or possibly 1948-49. After a
long period of rapid expansion
and

near-capacity
operation,
a
short respite is not unusual. More¬
witnessed during previous

over, as

5%% First Mortgage Sinking Fund Bonds, due June 1,1963
(Principal and interest payable, at the option of the holder, in United States dollars in
New York City at the principal office of The Chase Manhattan Bank or in Canadian
at certain branches in Canada of the chartered bank designated in the Bonds,

dollars

except

that after ninety (toys from the due date of principal and any interest coupon
after thirty days from the maturity or redemption of all outstanding

the Bonds, and

postwar periods of readjustments,

on

there

Bonds, principal and such interest on the Bonds will
dollars in New York)

are

which

and

built-in stabilizers

many

effective

become

business

when

activity begins to decline

he payable only in United States

and

unemployment rises.
activity

910,000 Common Shares

slows down and inflationary pres¬

(Par Value $1, Canadian, per share)

"(4)

of

the

be

business

Once

the

subside,

sures

authorities

monetary
The

reversed.

policies

credit

will

availability

bank credit will increase and

in

trend

upward
"will

halted.

be

favorable

and

on

will
,

public

of
the

will
that

enable

have

have

home

Bonds and 35

each'of which consists of $1,000 principal amount of

fully paid and non-assessable Common Shares.

a

con¬

works,

those

Offered onlv in Units,

rates

interest

This

effect

struction

no¬

corpora¬

their
capital spending plans — because
of tight money and capital mar¬
kets—to carry their programs to
completion.
"(5)
ment,
well

postponed

Of the

$26,000,000 principal

amount

In the event of
a

as

reduction

in

a

of Bonds and 910,000 Common

Shares, Units aggregating $10,000,000 principal amount of Bonds and
are being offered for sale in Canada by Dominion
Corpn. Limited, the Canadian Underwriter.

350,000 Common Shares
Securities

Price $1,000
on

(U.S.) Per Unit

the Bonds from February 13,

1957)

readjust¬

personal

as

excise and corporate taxes

Although higher

Copies of the prospectus may be obtained from any of the several underuliters only in stales in which such underwriters are qualified to act us
dealers in securities and in which the prospectus may legally be distributed.

'Eisenhower Doctrine' in the Mid¬
dle

East—would

tend

to

discount

the possibilities of a tax
near

future,

any.

domestic economy
a

reflect "changes in tastes

the

business

securities business from offices at

in business activity

characterize

merely

and

New England, Inc., 68 Devonshire

level.

present

"Expenditures for research are "government spending — particu¬
rising; new products and labor- larly in regard to the proposed
saving devices are constantly be¬
ing developed: and the mode of
life
and
buying
habits of the

at

War II, John
completed
his

six years.

„

.

Investors Planning Adds

to

material increase

any

is quite probable.

says.

Raggio

Thayer

investment

(Plus accrued interest

Any readjustment is bound
be short-lived because of the

serving in the Marine

World

Investors Planning Corporation of

tions

"gloom-and-doom" predictions

in

Corps

the

the

It also

Readjustment

economist

The

demand.

tably schools, roads and highways.

and prices, he explains.

wages

^ Co. After

contrary, a decline later in the
year is quite possible.
Money is

omy

to

a

been

general
partner of the
a

education

the rest of the free world."

own

against
property-denying
Communism
and
reinstate
respect for
indi¬

be

corporate

The

year.

effective

SUDDlv

from

omy.

and

The

readjustment,

a

clares.

to

subjects.

Ex¬

Logan,

who

^

economic and military aid to

are larSe» and> except

experience

the

free

themselves

respect and protect private prop¬
erty and other rights of foreigners
as

adds.!

"quite probable," Dr. Nadler de¬

by

in

capi¬

their* pro¬

carry

event of

and

excise

I

that

to

reduction in personal as well as

will

Carta,

ago
a

and

.

completion," he

In the
a

.

of tight money and

because

of

thoughts

states.

favorable ef4

a

construction

.

verse

Magna Carta

have

home

on

up¬

public works
and will enable
those corporations that have post¬
poned their capital spending plans

community among nations and

all

the economist

''This will

cannot afford such attitudes in the

any

the

and

interest rates will

of

halted,"

feet

hardly

increase

the

of

exceeds

short

activity slows
down and inflationary pressures
subside, the credit policies of the

nation,
and this includes Germany, which
in the past has not discriminated,
in one
way
or
another, against
foreign investors. The free world

is

Stock

that

postwar Logan will continue to have

"Si°wth has been remarkable. The
supply of goods and services has

'
ready

business

versed.

'

half

•

,

One is the high interest rate
Germany and the excellent op¬
portunities for investment in our

'

fective demand, t

e

latter

be

will

readjustment

/Once

in

Coast

an¬

nounce

joining
the organization
registered representative.

.

—

Street, members of the New York
and

California

the
This

indebtedness, he explains.

.Discrimination

Calif.

Montgomery

°
v/ar ah°ut the future of the
-American economy have not maSerialized. The country has re-

during

boom

current

capital1^an7aadecliL°inCCOnsumer JnventorieS
? P if/'j
?
lor certain

Foreign Capital and

220

son,
John
Thayer
Raggio.
is

^

.standard of living, but also to suppor^ larSe defense expenditures

-

The

brought.on by productive capacity

account for

Fay,

£omic forces. It is reassuring,
koweyeWthat all the gloom-artd?°.]u PredlctIons made at the end

may

being.
"(2)

this

opportunity, we have in¬
vested
abroad
only $500,000. In
my view, the sum is ridiculously
to

&

aa,

Dr. Nadler says.

omy,

great

sons

.

Nadler

bonds and shares. Yet the sad fact
is that during the eight months

f

FRANCISCO,

Hooker

Germans
make

f

«

.

Hooker & Fay Admits '
John Raggio to Firm

The increased competition and the

Forecasts Short-Lived

circumstances

no

*

sharper in the days ahead as ca¬
pacity begins to outrun demand.

Nadler Views the Year Ahead and

within

barriers

economic

Europe.

19

(683)

cut in the
setback in the
is sure to favor

lowering of taxes.
"(6)

The rise in the price-wage

spiral during the new year is not

likely
1956.

to

be

as

pronounced

Wages and

as

in

doing business will continue to
climb, apd this is bound to be re¬
flected
in wholesale and
retail
price levels.
But competition is
and

will

Ilarriman Ripley & Co.

IIornblower& Weeks

Goldman, Sachs & Co.

Kidder, Peabody & Co.

Incorporated

Lazard Freres & Co.

Paine, Webber, Jackson & Curtis

the other costs

of

keen

The Dominion Securities Corporation

Elyth & Co., Inc.

Eastman Dillon, Union Securities & Co.

become

even

Stone & Webster Securities
February 6, 1957.

Corporation

White, Weld & Co.

20

The Commercial and Financial Chronicle

(684)

Risks of Private
In

Bond Club of Chicago Annual

Enterprise
a Growing World

Cocktails, 6:00

p.m.,

French Room; Dinner, 7:15

Crystal Ballroom.

the

Thursday, February 7, 1957

.

our

pur-

-

ing

and principles, President Garner describes increase in
movement of private capital and business into less devel-

limited

poses

with

the

within

of. the war,

end

of

keynote

today.

the

Corporation
itself has a
operating staff of men-with
experience in private finance and
business * i n
this
country and
small

the growth

con¬

cept has spread to the less devel¬

abroad.

oped areas of
'the world, and:
to an increas¬

ing

;

principles

extent

these

*

and

simple:

are

owned and managed

evident in the

world today.-

■

(2) To take risks and share in
the profits with our private part¬
ners who will
manage the enter¬

1949 J

Since
world

manu¬

facturing out¬

prises.

put has grown
at the rate of
6%

over

Robert

per

L.

Garner

'

in the
preceding 35 - year period; food
production has increased at the
2¥2%

of

rate

2 %%

than

to-less

pared

and the volume of interna¬
tional trade has grown at the rate
years;

of 6%

The Latin Ameri¬
a
group
have

per year.

countries .as

can

their

Gross

National

by about 5¥2%

per year,

increased
Product

roughly 5% in Eu¬

compared with

and 4% in the United States.

rope

The flow of private

capital into

the less developed areas since the
has been

relatively small due
to urgent demands and attractive
opportunities at home, and to cau¬
tion regarding risks abroad.
In¬
tergovernmental grants and loans,
war

from

chiefly
and

loans

the

from

have

helped

basic

facilities

United

the

World

restore
which

Bank

and

create

are

neces¬

to the development of private
industry and trade.

begun to
there

developed

move

has

in

terest among

have

desire to grow,

increasing in¬

businessmen and in¬

vestors in this
ern

areas

a

an

been

country and West¬

Europe in the

new

and grow¬

ing markets to be supplied; in the
untapped resources to be devel¬
oped; and in the opportunities to

The

to sell

interests

our

N.A.P.A.

offer

system

extremely

an

world

unique

has

in

the

of which

you

optimism

ever

It

seen.

world; today;

is
no

The January composite opinion
of

purchasing

the

National

Association

of

their

particularly

forward

fits

to

offers

the

those in

such

United

mutual

States

bene¬
and

to

foreign lands.

By this I
American

am

not

chasing

Agents

optimism

moderate

but,

business rush

eign operations. There
problems and risks such

into for¬
are

reflects

and

based

in

upturn

also,

worries

suggesting that

Business

new

price

on

Commodity Prices
"Prices have resumed
ward

limit

forward coverage, particularly on
Production and MRO items.

that
ter

many

as

"New

amateurs.

But the less developed countries
—which I call the frontiers of eco¬
nomic development—are in
proc¬

orders

moderate

ing

shown

upturn, with

that

proved.

have

their

32%

position

is

spiral.

The

their up¬

leveling

trend

reported in the last quar¬
of 1956 has diminished. 73% of
was

those reporting say they are pay¬

In describing the general busi¬
politi¬
ness conditions, the Survey points
cal conditions, different
laws, ex¬
change problems, inflation, lack of out, "there are indications that the
business tradition and ethics. For¬ optimism which purchasing exec¬
eign operations is a tough game utives expressed for 1957, in their
December
which calls
comments, may have
|or sound knowledge,
the beginning of its confirmation
competence, cool judgment and
in the January reports.
for courage. It is a job for
pro¬

fessionals, not

for many

a

orders,

to

and

months, employment remains high
and steady.

inflation

tendency

case

ing

more

buy

and

lower.

for

none

A

material

says

number

executives

opinion

the

of

prices

they
are

purchasing

have

expressed
the
while the govern¬

that,

ment's current tight money policy
poses

lieve

problems,

many

it

is

sound

a

they

move

for

be¬
the

a

new

industry. And with¬

Purpose of I. F. C.

•

established

was

to

help
give impetus to this movement by
participating in partnership with
private business and investors,
without government guarantee, in

promoting

and

of change.

im¬

This compares with 24%

engaging

in

the

of private enterprise and
investment. This is the first time
that governments have joined to¬
spread

-

During the past ten
the

years

World Bank I had

an

with

oppor¬

tunity to observe rather closely
the economies of a
large number
of
countries r around
the
world.
This experience has confirmed and

strengthened

my conviction that
the American
competitive private

has evolved. It provides more
for the single purpose of
-opportunities for the individual^
helping to develop private busi¬ more and better
goods and a bet¬
ness,
without political interfer¬ ter life for more
people than any

;

man

IFC
It

was

was

rience

organized last

summer.

conceived out of the expe¬
of the World Bank and is

closely

related

to

.

it.

Only

the

members of the World Bank
may
be stockholders in the

Corpora¬
Already 47 have joined with
subscriptions of $90 million capi¬

tion.

tal.
The World Bank staff fur¬
nishes administrative services and
makes available its wide
range of

experience

regarding

economic

conditions around the world.
From

Illinois
cago,

■

* •

talk by Mr. Garner before the
Ma«*t*ar*—-ers Association, Chi¬
a

Jan.

24,

1957.




However,

believe

Spotty

December.

exist

both

unchanged.
"Our special question this month
asked if the higher inventories of

December, which
firmed

tional

this
or

are

month,

the

reported

again

The

remains that the

primarily

in

rary

a

general

feeling

slight build-up is
a tempo¬

reflection of

drop in the

new

orders and

production.

con¬

*

were

Brass,
items, tin, selenium,

copper

"In

structural

>

.

Short

Supply Are:
and

Nickel,
other

numerous

■

steel

items, stainless, monel, cello¬
phane, some items of electrical
equipment."

Halsey, Stuart Group
Offers Utility Bonds
5

Stuart

headed

-

&

Co.

Inc.

on

an

underwriting
publicly offered $12,of Public Service Co. of

series F,
at

first

mortgage

AVi%< due

99.25%

and

bonds,
1987,
interest,

Feb.'1,

accrued

yielding approximately 4.295% to
maturity; The group was awarded
the

bonds

98.45%.

Feb.

on

4

on

bid of

a

'

-

.

.

Net proceeds from the sale of
the bonds will be used to
pay part
of the costs of

additions, exten¬

sions, and
company's

improvements

to

the

electric

erties and

utility prop¬
prepay $8,400,000 of

to

bank loans made and to be made
for; that

The

purpose.

bonds

new

are

redeemable

at

general redemption prices rang¬
ing from-103.50% to 100% and,

beginning in 1958,
for

are redeemable
retirement purposes at

debt

100%.
Public Service Co. of Oklahoma

cated in 48 counties in eastern and
southwestern Oklahoma, including

The percentage
reporting inventories the same is

'

materials

"On the Down Side Are:
some

and lumber.

supplies

than last month.

geographically and in certain in¬
dustries.

coal, fueli<and other oils,
gasoline, freight rates, light bulbs,
paints, and cement?
•;.
7
*,

mated

electricity to an esti¬
population of 770,000 lo¬

the cities of Tulsa and Lawton.

Among those associated with
Halsey, Stuart & Co. Inc. in the
offering are:' Courts & Co.; J.
Barth

&

Co.;

First

of Michigan
Co.; Mullaney,
Co.; Schwabacher & Co.;
•

Thomas

&

purchased materials again are Wells &
reported on the high * side, with Stifel, Nicolaus & Co.
Inc.; Clay31% reporting increases, against .ton Securities
Corp.; F. S. Yantis
20%
who state they
are. lower
& Co. Inc.; Allison-Williams Co.;

with caution.

situations still

-

coke,

of

are
many
who
the current situation

should be tempered

7, > \

Nickel,
steel items,¥
dyestuffs, for¬
maldehyde, methanol, raw sugar,

montb^ inventories Corp.

there

still

than

re¬
-

.

-

.

B.

Joyce

& Co.; McMaster
&
Co.;
Patterson,
Kendall, Inc.; and
Peters, Writer & Christensen, Inc.
Copeland

&

Securities; Counsel Inc.

J

Celebrates 25 Years

'

inten¬

John

^Hutchinson"

t

Employment

result

of a drop in
production. The

JACKSON, Mich. — Securities
"Very little change is reported Counsel Inc., 408 Wildwood
Ave.,
majority of purchasing executives this month in the employment is
celebrating its 25th Anniversary
useful
task than promoting the (59%) thought the company over-s figures.
Those indicating greater This
year.
At the firm's annual
spread of this system to the other all inventories were about right, employment remained the s&me as
meeting George W. Clemons, for
while 30% believed them to be last month, 17%, while those say¬
parts of the world.
.many years President, was named
too high and only 8% too low. In ing it is the same as last month
It is my belief
Chairman of the Board. Harry G.
that, if reason¬
a few
able peace can be
cases, inventories were be¬ dropped.only 2 points, from 70%
maintained, the
Ziegler, with the firm since 1933,
lieved to be unbalanced, being too to 68%.- Many part-time
growth in the volume of
employ¬ was elected President; M. Lloyd
produc¬
tion, trade and economic activity low on some items and too high ees hired for the holiday season Jones, Vice President; and Robert
on others.
in this
have been released and the gen¬
S. Botsford, Secretary.
country and throughout the
other

.

better

enterprise system is the best that purchased

gether

ence.

is

it

-•

tion will continue to be the prob¬
lem and, in the next few months,

say¬

who

say

ment.

The International Finance Cor¬

poration

ess

<

nation's economy. They state that,
for the near period ahead, infla¬

reported a better new order
They want the ma¬
they look for prices to continue to
in the last two
three yeqr$ Jherp terial benefits of" which they have position in December. The nummove slowly upward.
has been
some'increase in the learned from us arid from' Europe. bei?'reporting a decline* in new
orders has dropped
movement of private capital and But they are largely
from Decern-inexperienced
Aioi Inventories, j
ber's 31% to 23% in January. Pro¬
and driven
business into these areas.
by an urgency that
>
"Following the pattern of the
duction
remains' high and
often dispells reason and
28%
judg¬
previous two

establish

'«

some

Halsey,

,

"As has been the

strongly

"On the Up Side Are:

•;

Feb

coverage,

Production

on

also

are

this month. '7":

000,000

limit

to

hikes

Oklahoma

MRO items.

spreads its - benefits

Changes 7

Commodity

group which

"Purchasing executives continue

comprising

agents

rate

flected

ex¬

about right.

are

so

abroad

"

Survey Optimistically Notes
Moderate Upturn in New Orders

Pur¬

to

.

.

Survey
many.
I believe it can be
Committee, Chaired by Chester F.
exported, and I am convinced that
Ogden, 1 Purchasing Manager of
no
other concept or commodity
the Detroit Edison Company, re¬
which
this
country
may
send veals an

other system

'

:

pressed last December, 1956, regarding the outlook for 1957.
Survey shows majority polled believe over-all inventories are

part is the most productive force

the

y

Moderate upturn in new orders is reported in January
survey
of purchasing agents which tend to confirm the:

technique and manage¬
The competitive private en¬

terprise

'

•

business going

a

out

opportunities for develop¬
abroad

-

For Directors, the Officers and:. Howard E. Buhse, Horn blower
Weeks; William D. Kerr, Bacon, Whipple & Co.; F. Girard '
Schoettler, Wayne, Hummer & Co.; Robert E. Simond, Halsey, Stu¬
art & Co.; Edwin A. Stephenson, Chase National
Bank; Richard B.
Walbert, Blyth & Co., Inc.'
7
•
"
;;

capital,

a

;

„

&

challenging prospect for American
ment.

:

.•

Woodward Burgert, Harris Trust & Savings Bank.
t,/

Opportunities Abroad

States,

sary

As the less

then

ment

* ■

-

James G. Dern,'Smith/Barney & Co.

.

r

}•

Secretary:

private investors, and thus re¬
volve our capital.

the

twice

year,

a

rate of the 35 preceding

average

;/

Treasurer:

to

com¬

year,

and

Burger t

.

(3) To help get

;

t

Woodward

Sampson Rogers, Jr., McMaster, Hutchinson & Co.

enterprises—

areas where

they have not
yet been substantially developed.

'

Dern

President:

;

principally in the field of. indus¬
try—-in

G.

The

coming year:

lishing and expanding privately-

ing in the un-

Qprecedented
growth that is

James

Nominating Committee,/Charles. R. Perrigo, Chairman;.?'
Holden K.,Farrar and Richard W; Simmons/ Blunt Ellis & Sim--/
mons, has proposed the following. Officers and Directors for- the

To join with private busi-nessVand management in estab¬

hreparticipat•

'.

(J)

* areas

30-r

general
increases. r RecentJ freight

price
Rogers, Jr.

<

purposes

to

¥ "As might be? expected, most pey
rtroleum
products' show
Sampson

!" The Corporation's

Specific

¥

/.The

Since the

needs,
buyers staying

the

the;hand-to-mouth

category last month tapered off to
60%, this mopth.¥;¥.;7■ \'y'»

,

the

to .* immediate

of

.

-

is

65%.

///-,: /<-.
j
"A slight drop in lead time for
capital expenditures,, is noted, as
>;the 66% in the 120 days-and-oveir

■

economy

some ex¬

day range.

oped areas, and impetus that might be given to this movement ■.
by the establishment of the IFC. Does not suggest private
*
investors rush into foreign operations for there are too many
problems and risks, and cautions it Ms a tough game" requiring v,
' professionals, not amateurs, v •
Growth

There is

"MRO requirements are also ber-

outlining the International Finance Corporation's

*

Somfe 66%

range.

reporting members say
keeping commitments to

tension
to
90
days on items in
short supply or where longer lead
time is required by mill schedules.

'

President, International Finance Corporation

'world

definitely limited to

they are
60 days or less.

p.m.,

*

,

are

short-term

of

By ROBERT L. GARNER*

After

.

materials

Meeting '

CHICAGO. III.—The Forty-Sixth Annual Meeting of the Club
will be held at The Sheraton-Blackstone Hotel on Thursday,
Feb. 14, 1957.

.

system.

There

world should
surpass

is

no

anything in

can

play

ing

' era

the

next 25 years.
American
businessman

the

major role in this

a

of

snre£d

com¬

expansion, " through
of

that

vigorous

orders

and

more

history during the
And

new

"A

renewal

of

price

eral

increases

and further inflation
worry many.
The attempt to keep the costs of

purchased materials down

so

their companies will be in

a

will

consensus

not

next 90

that

much

for

the

With Keller & Co.
(Special to The Financial Chronicle)

days.

BOSTON,

good

Buying Policy

and

competitive position in The mar¬
dvnamic force—American
private kets they see ahead is frustrated
enterprise.
by advancing prices.

is that employment

fluctuate

.

"Again,,
months,

as

for.

purchases

the

of

Stanwood

past

two

production

is

Mass.
now

—

Eldon

with

Co., 53 State Street.

He

G.

Keller
was

&

for¬

merly with Richard J. Buck & Co.

.

Volume

Number 5610

185

.

.

Assistant Treasurer in the

Division.

ing

Mr.

News About Banks
NEW
NEW

OFFICERS,

dent

nounced

an-

Flanigan,

Mr. Brittain, who is associated

Mr.

been

C.

Horace

by

of the board.

Chairman
t

has

York,

New

pany,

Elected

made Vice-President in

For. the .-last "four

1951, and

an

•

$

'

with

associated

the

'

i

The

Mr,..Craft,
.

Dunkirk,

of

their approval Jan. 23.

J.

WPNB

and

C.

shareholders

comes

King, former cashier and
Vice-President of WPNB

a

Teschner

Charles

p

,

The

*

Trust

Plan

Provl^es

for

ex-

an

Company,

ic .'National
Mofiyytrerl

at:-.

nnr*
and

reDOrted total

000 and

National

the

of

Resources

,

Bank

Lake
Dec.

011

Shore

31,

1956

^

Ad\ L

members are
of
BoaM
Board

AdVlSOry
.Advisory
,

Chairman R.' E. Plunkett, Harry
M Templeton> Ralph.w; Peacock,
Glenn Patsch,.Dr. W; T. Mc_

_

Vrtty and W. E/Speakman.
' The Board of Directors of the
Trust
Company
1
Provident
-

Philadelphia,

Both banks are f
in- ChautaUqiiaCounty in New
each, to $800,000/ consisting -of/York State's ninth banking diS000,-.shares^,of 'the same' i>ar trict.
■>; ■ / ''i <:'t %;•-;*r /
over $48,400,000.

$700*000, consisting, of 28,00.0
shares of the pari valued
$25
from

-

'l

in excess of $11,700,000, of

Citizens'Trqst Company of. were

Schenectady, N., Y.rwas given, ap- Chautauqua National Bank, „ one
nroval to increase^its capital stock df the 13 Marine Midland Banks,
proval to "increase^ its caoitalstock- of the J 3 Marine Midland E

bank s

of <K2 QOO

Zit.„Mnr.0 Z

an-

regulatory author-

fties

resources

deposits of $2,600,000.

^WPNBS
WRiNB's

ie c.Kinnl
is snhipri- tn thp

of ^atioi^
^

,

,

value-

'

;,

stock

4^23 shares;of the par

Treasurer Xll
in
11CMU1C1

Mr
tV.Sherwood .and
h'nlh

County

onnooJJl

Assistant Vice-Presi-

dent in 1954; /

1948.

*years he. has

8

gave

pf director of the Houston Bank, beof

Bank

change of 30 shares of Marine
given ap- Midland Corporation common
proval to increase its capital stock stock for each of the 2,000 outfrom $6,654,115, consisting of 1,standing shares of the Lake Shore
The

Division in the

Assistant
nMI3lcull

an
011

President

Beebe,

Jan.

White Plains, N. Y. was

West

Far

Harvey

by

the Lake Shore National

capital

common

*

territory,
Company in August,. began with the company in 1947.

1931, became Assistant Secretary
in 1939, was made Assistant VicePresident seven years later, and
was

National

the

Manufac- /Middleand

joined

Northrop

turers Trust

with

the
'

*

.

and the appointments to Assistant Treasurer of Alfred D. Cella,
Omar Dedert, and Myron B. Griswold.

appointment of Eugene S.
as a senior Vice-Presiof Manufacturers Trust Com-

The

A joint announcement
to this effect was made on Feb. 1

and and Manager of the Houston Ofthe Meadow Brook National Bank
John Hamilton, Chairman of the fice of the WTestern Pennsylvania
of Freeport,
New York was in- Board and President respectively National Bank,
creased from $7,484,750 to $7,709,- of Chautauqua National Bank of
Western Pennsylvania National
290 by a stock dividend effective Jamestown,
and Baldwin Maull, Banjc reoorted total resources of
Jan.
23,
(1,541,858
par President, Marine Midland Corpo- $155,o0oj)00 in its yeai-end state!
shares,
value $5).
ration
ment for 1956. The Houston Bank

CAPITALIZATIONS

Northrop

National Bank of Jamestown,

qua

New York.

manage

*

*

Bankers

and

ETC.

REVISED

will

Ostlund

The

BRANCHES

Bank-

v

bank;? Loan, Department.;,

CONSOLIDATIONS

21

(685)

The Commercial and Financial Chronicle

.

P' a/

hf

elected
A.

ard

a

,3

How¬

-

Foster

,

r a

Vice-Presi¬

>

dent

/•
Security
Trust
Company ./of /
Rochester/ Roehestcry N. Y. J re- /
ceivcd, .on Jan. J30, approval given
.

B

a

of

n

;

k.

tlje.
jr.v

.Foster will rg-..tain his title
of
,

Secretary
Gom-

of/t he

h >i s
presgnt V re¬

p a n y,.

sponsibility//
Mr. Foster
was; elected

S
the

Provident

Trust

e c re

t ary,

of

Company in

State
on

ground in

42.

was

The appointment
-

i

T,f.

'

_

of S. Bernard
2--i

n

,1.

,•

.

banking „and is

spe-

a

Feb.

cialist in consumer credit financhpi/inff
manncfAf1 r»f
thf»

By

hppn

ino"

a

stock

dividend

effective
stock

Bank

150th anniversary of the founding of the
the

celebrated

4,

Bank.

of

/

■

Governor

J.

Caleb

Boggs

of

in-

was

congratulating the

charge of the Banks operatronal- ]1US
"or r^t/Pfn^in! creased from $3,150,000 to $3,250,- Delaware. m
election bv the Board of Directors office at 34th Street and 8th Ave-:.|he
Noithein Libnts „hoppm0 00f) (130>000 shares par yalue Bank on its 150th anniversary,
said records of
the State show
as Chairman.
$25),
George A. Murphy, nue was announced on Feb. 1 by. denier.
Mr. Boyle started with the Bank
senior
Vice-President,
becomes Thomas J. Shanahan, President
and
V0111
President, and William N. En- of the Bank/" Mr. Adnepos, who in 1923,. working, in the various,,, TJle £Ry National Bank
istrohv formerly Chairman, was has had extensive experience in departments of the Bank./Prior Trust Company of Hackensack,
1807' Passed an
mcor~
named Chairman of the Executive
the factoring and finance fields, to his assignment at the Nortnern ]vjew jersey increased its com- poiating the .Bank and providing
Committee.
has been associated with Federa- Lights Office, he had been Man- mon. capital stock from; $250,000 that it should be on "a foundation
tion Bank for the last two years.
main
£ger of the Bank's mam oxfide to $500;000 by a stock dividend, sufficiently
extensive" v to
be
effective Jan. 21. (40,000 shares,
Collection Department.
George W. Engelhardt, John B.
"conciucive to the general interMall and Charles J. Weiring have
/r
Mr. Williams has worked at par value $12.50).
Royal State Bank of New York, Marine Midland since 19o0, with
*
*
*
ests of the State" and "to probeen
appointed
ass'stant
manNew

York,

Feb.

on

1,

his

upon

^

agers,

International

Chemical

Division,

Exchange

Corn

/Cnvai

by

Bank,

„

Alfred
and

F.

.elected
ers
was

Brittain

Raymond

Colt,

Board.

on

Bank¬

Jan. ,31

by S.

of

"

.

consisting

500 011(1

served ln the.Uiufa/rmiy;

Western Pennsylvania National

years

fices.

Federal

Board,

Reserve

the

Avenue

men's

Bank

*

,

a

j

D.

Washington,

1

office

in the consolidation
Washington
County

was

Last

C. through the with
T..^°^n
Coontz was elected„ jrecierai Reserve- Bank-of Mini Bank
New
V'ce-Pres^ent in charge of tne
Yorl
has granted .Marine
U

Back in 1807 when Farmers

Lank

around 70,000 and Thomas Jeffer-

final approval by tne

step

son was

President.
....

*

■

the popula-

founded,

was

tion of the State of Delaware wa3

Union

for-

Bank

Cleveland,

of Commerce

has

changed

New

The, New York

Trust Company,

York,

for

the

of

purpose

approved

Bank

merging that Bank with Chautau-

New York announced the appoint-

Houston

the

Shareholders

The

to

namc

Union Commerce

the transaction Bank.

"

leu

to; Assistant

Vice-PresidentSj/ment of Alfred P. Ostlund

as; an

Dock Company

Newport News Shipbuilding and Dry
.

.The Comptroller of
'

"

''

the State of New York

'

.

"r

'

U- 1

■'>

"

k

'r

i

Quarterly Statement of Billings, Estimated Unbilled Balance
"

"V '

will sell at his office at Albany, New York

"

of

Major Contracts and Number
1

of Employees

(Subject to audit adjustments)

(Eastern Standard Time)

'

;

.

Dec.

>

Shipbuilding contracts •

$40,425,000

•

»

.

Ship conversions and repairs

.

.

.

10,578,822

Hydraulic turbines and accessories
Other work and

HOUSING (SERIAL) BONDS

operations

.

.

31,1956

$27,693,958

4

STATE OF NEW YORK

.

-

430,604

$41,152,243

Dec.

Dec. 31, 1955

31,1956

Dec. 31,1955

$19,993,980 $ 81,747,157 $ 86,717,925
24,885,560

6,710,974

3,635,081

16,394,622

2,888,359

7,499,680

10,048,116

986,700 '

2,448,859

Totals

14,012,894

$31,326,735 $119,569,192 $124,625,121

Dated March 1, 1957, and maturing as follows:
At Dec. 31,1956

unbilled at the close of the

any

State

on

Notice,

on

March 1, 1997,

At Dec. 31/1955

$371,735,676

$148,028,501

12,020

9,542

Estimated balance of major contracts

$825,000 annually March 1, 1959 to 2007, inclusive.
Redeemable by

or on

period

.

Equivalent number of employees, on
40-hour

interest-payment date thereafter.
I

basis, working

full work-week of the

.

a

during the last

period

Principal and semi-annual interest September 1 and March 1
The Company reports

payable at the Chase Manhattan Bank, New York City.

such income for any

Descriptive circular will be mailed upon application to
ARTHUR LEVITT, State Comptroller,
Dated: February 7, 1957




.

Year Ended

Three Fiscal Months Ended

Billings during the period:

J

•»

.

February 14, 1957, at 12 o'clock Noon
'

ita

York.

Simultaneously," Mr. Colt announced the promotion of Douglas
C. Leancler and Joseph O. Zurhel-

i

°/ H®uston' */*•' wPiMT?gm°

the total number of WPNB of-

15

The
tt

,

mote the agriculture, commerce

Z5 Bank, McKecsport, Pa. disclo;ed and manufactures'* of Delaware.

^aiSS: LSulT^rtmemfor several ft has acquired the^First National

$5 each, to $2,000,000, consisting

Fifth

the

*

r/n". fai the excePtlon ot .the U™e he

tn

SI

T

New York, it

.Chairman

"

,

of

•

xt

value.

Sherwood were

Vice-Presidents

announced

Craft,

III, J. L.

Trust Company,

Sloan

of

p

,

of 400,000 shares of the same par

„.

_

t>

x

g

Se;^y°;k/VW//.n/nCed by
Harold R. Helm, Chairman.
„

c*a

*

r»

.

.

unbilled

balances

Albany 1, N. Y.

income from long-term shipbuilding contracts on

the percentage-of-completion basis;

period will therefore vary from the billings on the contracts. Contract billings and estimated
subject to possible adjustments resulting from statutory and contractual provisions.

are

By Orc/er of the Board of Directors
.

January 23, 1937

R. I. FLETCHER,

Financial Vice President

22

The Commercial and Financial

(CGu)

Bank and Insurance Stocks
==

Our

By ARTHUR B. WALLACE

Chronicle

Reporter

.

.

Thursday, February 7, 1957-

.

Governments

on

By JOHN T. CHIPPENDALE, JE.

—:

=»

The Government market seems to have liked the terms which
were offered
by the Treasury in the refinancing of ^nearly $11 bil¬
lion of debt. Not only did the issues that were to be
refunded
go

to

slight premium above the redemption price, but the turn-ins

a

for cash

are

expected to be on the favorable side. The one-year
3%% certificate and the 39-month 3Y2% note were fitted to meet
the needs of the money
market, although the Treasury had to pay
-

the

highest

successful
The

rates

since

1933

in

order

to

make

this

refunding

a

one.

market

money

is

currently

under

the

influence

of

the

refunding operation, and the larger weekly offering of Treasury
bills. Demand for new-term and medium-term
issues is sizable and

signs

appear to

market and

demand

in

point to a continuation of this condition. The capital
long-term Governments appear to have an improving
spite of the competition for the available supply of

funds.

Decline in Non-Government

Borrowings Expected

The Treasury in announcing the terms of its latest
refunding
operation has kept pretty much to short-term issues, or to that side
of

the

monetary picture which is most commonly known as the
market. In selecting maturities, the longest of which does
more than 39
months, the Treasury is not providing any
competition for the new issue capital market which is concerned
primarily with long-term maturities. The capital; market for the
money
not

run

foreseeable future
to

Even

seems

to have enough new

issues coming along
interest rates of non-Treasury offerings.'
though the new flotations of corporate and tex-exempt

keep the

pressure

on

bonds are not yet showing any appreciable declines in the amounts
coming along, it is the opinion of some money market observers

that the not-too-distant future will
bring with it
ciable decrease in borrowing for capital
purposes.

a

fairly

appre¬

Refunding Issues Tailored to Market
The

Treasury in putting out short-term securities to meet the
impending maturities is again tailoring its offerings to coincide
with the needs of the money market.
The holders of the 2%%>
certificates due Feb. 15, and the owners of the 2%% notes matur¬
ing March 15 were given the option of turning in their securities
for either the one-year 3%% certificate or the 39-month
3x/z%'

Neither of these refunding obligations was available for
cash, although the holders of the \ Vz% notes due April 1 were able

notes.

to

subscribe

to

the

one-year

Government announced

that

3%%
the

certificates.

issue

In

addition,

the

of

special "Treasury bills"
coming due Feb. 15 is to be "rolled over" into an equal amount
of 129-day tax anticipation bills.
I'
The rates which the Treasury
rent
case
a

modicum of

this

had to

pay

to put

over

the

cur¬

refunding were somewhat better than woul;-»*have been the
if the operation were undertaken last month. There had been
has

ease

in the money market in the past few weeks and

improved

the

yields of both

the

long-

and

short-term

maturities.

New
It

One-Year Issue

Seen

Favored

is expected

that the bulk of the maturing certificates will
go into the one-year maturity, because the Federal Reserve banks
which hold about one-half of the securities that

are

being refunded

will most likely take the shorter-term obligations as has been true
in the past. Corporations and the commercial bank holders of the

maturing issues

are

likewise expected to be attracted to the 3%%

certificates.
On the other

hand, the

notes due May 15, 1960 with the
3^%
rate, will have attraction for those that are interested in a some¬
what longer maturity.
These exchanges (into the 3V2% note);
however, should not be too sizable (probably $1,500,000,000), even
though it could be a very desirable issue, especially if there should
be an easing in money rates in the future.

Bond Market's "Worst Days" Near
Although the
ket

and

End

is still strong as far as the money mar¬
the capital markets are concerned, funds continue to be
pressure

available

when the yields are attractive. To be sure, money is
currently being channeled into fixed income bearing obligations
from other sources, because the yields of these obligations are
more favorable,
the senior security factor is important, and the
feeling seems to be growing that the boom is coming to an end. If
there is to be a
lifting of the inflationary pressure, as
expect, then the bond market has seen its worst days.

13 NEW YORK
CITY

NATIONAL

BANKS

of

Bankers

Breakdowns of Government
Bond Portfolios &

of Growth Income

Laird, Bissell & Meeds
Members New York

Stock
Stock

Uganda,

Exchange

120

American

BROADWAY, NEW YORK

5,

N,

Bell
A.

Teletype—NY

Glbbs,

1-1248-49

Manager Trading Dept.;

Specialists

in

Bank

Stocks




In

Uganda

Bishopsgate,

Tanganyika,

Zanzibar,

land

Y

Government

26

and SomaliProtectorate.

Authorized

Telephone: BArelay 1-3500
(L.

the

Colony and

Office:

London, E. C. 2.
West End
(London)
Branchi
13, St. James's Square, S. W. 1.
Branches in India,
Pakistan, Ceylon,
Burma, Aden, Kenya,

Exchange

Members

to

Kenya
Head

Sources

BANK

INDIA, LIMITED

Paid-Up
Reserve
The

Capital
Capital

£4,562,500

£2,851,562

Fund

£3,104,687
conducts every
description of
banking and exchange business.
Bank

Trusteeships
also

and

Executorshipa

undertaken

some

now

Volume 185

Number 5610

.

The Commercial and Financial Chronicle

*

.

(687)
*

Continued

jrom

the

V

*

^

in-

tors than the small concerns, and,

that he

matte assembly equipment where
a company turns out thousands of

holds

number

units

outstanding

m

of

outer

ox

coih-

suosiaiary

of

the

same

product,

as

S3

-

stitutional

of course, you can only anticipate
the use of this expensive auto-

manufacturer

control

,tnrough

Growth Prospects in Electronics
competition, which is already severe, will become keener,
Nevertheless, there appears to be

f

equipment and
' instrumentation

largest

austriai

grows,

"

tne
acquisition- of
its
Brown Instrument Division and a

5

page

'>-1

*

department.
controller

was

Before* >

-

of Leo P

Corrigan Properties (Dallas).

i

B.A. degree from Rice Institute in Houston, and a B.S. de- v

do

gree

a

from S.M.U.

He is

member

a

the major manufacturers of home of the Dallas
and the smaller medium-priced panies.
Athletic Club and
radio and television sets.
or specialty computers thait vastly
Third, the Dallas Control of the Con¬
we have to keep an eye on the
extend the ability of a business
trollers Association. He served psi
Component Parts
organization to handle its own in¬
Finally, I might mention the comPanies that prove most adept President
of the Dallas Rica
ternal records. Total markets for
component
parts
manufacturers, f FslPg *be techniques of minia- Alumnae Association in 1953.
both giant brains and the so- I could make the
perhaps trite
Mr. Temple, Vice-President c,J "
called medium-priced computers observation that
^

considerable

growth

in

opportunity for

this

of

segment

the

industry, in.contrast to household
prpducis, where the market for
first

installations

almost

to

appears

be

Lev's

the

specific question
of television.
The
biggest
suppliers of housenold ielfcv*^tx,
in order of decreasing sales, appear io oe R^*.,
^amiral,
Motorola, and GE. Interestingly
iuok

at

enough, the leaders in household
radio are almost the same; RCA,
Philco, GE, Westinghouse, Admiral. In 1955, according to latest

purchased
7,450,000 television sets, and 1956

estimates,
sales

expected to

are

few

public

the

thousand

marlf
mark.

of

short

sets

only

be

a

that

Hnllnr+1 \>h1virr»A
dollar1 Volume

The

have

been

projected

at

over

they

a

thprA
there

sales levels well

industry itself, which is
pretty fast, but- in order to keep
ahead in the, race, tne individual
company must have enough re¬
search ability to- keep a or east of

per year.

The primary suppliers of giant
brains are, of comse, IBM, wnich,
in terms of sales, is largest in
the field, and Sperry Rand. IBM
has the particular advantage of
offering both large computers—
its ^00 series—and a somewhat
smaller line—its 600 series —as
well as a considerable amount of
accessory equipment for almost
all
conceivable
automatic
accounting purposes.
Sperry Rand
has
has

in
in

TTriivar line
Univac linp

i rip
tne

'

modate

°f, components to accom¬
themselves

changes

in

to

the

the

basic

engineering of
electronic equipment.
As regards specific equipment
developments, we must watch out
continued

for

improvement

S

a*

n* ese

fv
Spni-ifv
8
p ty'
^mnanip!
JJJ"
^ininn
JaP Jr™''j
"
.

h

,

.

'i

n

months

in

war

transistors* for eventual introduc-r

r

mvr

,

.

c„raolL

ni,t

wp

TTi^rrir.

gn,

ailu

'

,

lexas

p

'

inst U-

growing

use

diverse

how

matter

about $996

was

sales

lion

million.

should

By 1960,

that

8.2

tne

total

annually, representing
of

ume

Sales

than

$1.1

radio

more

of home

sets

mil-

a vol-

billion,

the

offers
equipment.
but

1956

in

easily

is

equivalent

of

There

medium-priced

no

other companies

are

question

big

represents

whether and
now that will

color TV will catch on,
have

sets

been

below

to

reduced

the magic $500 mark. RCA is enthusiasuc; most of the other man-

ufactuers
from

We believe that

not.

are

estimated 150,000 to 200,-

an

000 color TV units sold last year,

possibly jump to 750,000
in 1957, but sales in the millions
won't
come
until
1958.
Then,
we

may

there is the constant threat of

called

so-

single gun television tube,

developed out in California and
recently licensed" by Durfrorii It
is
still somewhat of a novelty,
and

will

it

probably require a
good deal of engineering to make
it operate satisfactorily,
but we
feel

as

a

tion

this

but

with

vestment

in

plus that should result

substantial

earnings
time

in

increases

picture
the

two

next

tneir

in

starting

,some

three

or

years.

another

As

uar

trnnips

indnstrv.

it

appears

in the elecKhoulrf

we

lnnk"

be

Vvill

volume

of

began

was

been

the

same

that it»o6 aoiabout $75 mil¬

wm

fi °^

For

nilp-tion

^

products, it seems that its major
is growth.

thing

oost

per

Crofford, Temple V.-Ps.

are

total

DALLAS, Tex.—Keith B. Reed,
President,
and
Jack
Munger,
Chairman of the Board, of Keith

the

Director

of

Finance io.c

Reed

&

Co.,

nicture

on

-

the

-

n.iito

IsTresu

t

o

irx

new

for

SDecial devices for stor-

a

code nattern

and

amolffiers
^

light
^

tensify

of

the^ndustrv

fng Tnfo^marton in J
o^ electrkal charges
called

This
ahnnf

numto

a

develoDments in

examDle

TV

onm*

wall

-

HiroHr

auite

Dallas in¬

The

Annual
elected

the

at

Lewiston.

George

M.

meeting

Payson

for

S.

Pay son, XL

12 years.

&

Co.,

was

Directors of the Association

Harold, D. Jones, Jones, Holman

Co.;
Robt. F. Temple

Crofford

Carl

Chafles W. Leonard, C. W.

Leonard &

Life Building, announces the ad-

examnle. tubes will fre-

dition of Carl Crofford and Robert

the

so-

which in-

able

light image.

Military
,

,

,

,

.

..

that
emphasize
military
electronics
equipment,
wliich was produced at a level of
companies

about $3

billion during this year.
requirements
are
so diverse, almost all manufacturers of electronic parts benSince

Government

Hirpptlv

gbfit

the

from

inriirpptiv

nr

the

military program, but there
some
companies that derive
majority of their income in

the

electronics

are

contracts

and

des

all

^

program

pro-

a

substantial

lei.

*

&

Co.; Robert G. Wad';-;
Fay, Nathan C. Fay <,'t
George Payson; W. ThomMi

Nathan C.

Co.;

A

'

are

.

,

.

,

„

industry,

their

of

rate

growth

will be somewhat limited by the
rate of new design developments,
and we cannot write the tube
manufacturers off overnight.
.

If

we

had

list

to

manufacturers

of

the

leading

transistors

in

of

volume, I believe we
special point, the mfleunce
F1
t •
?£ s°-called automation on growth would turm to General Electric,
th.ls, aref sh°uld ,be noted- Phllco' Raytheon, and Texas InComplete autopi^ion of any proc- struments, and among these pomes3t 15
otgn'°B
involve sensing panies, if we had to choose as
terms

a

.

(that

instruments

is,

those

that

regards quality of product; I be-

ature, and the like), recording Instruments. .
instruments; computers; and conConclusion

s>perry

i^orp.

however,

that

business

nru^wnrkwRrthe

as

analyst,

be

in

part

me-

chanical, and in part electronic,

Tn

in

you

Burroughs

For'ce

apd

suppliers

automation.

of

mechnicaI

and those who

both

Thus,
electronic

Now obviously, this has been a
very

raaar
radar

warning syssys

which you can look for

growth,

be

watched

for outstanding

growth prospects.

.

.




.

research
of

the in-

Co., 629 Second Avenue South.

-i

id

'X;
<

For

'•

Independent Banking

J;

FIRST NATIONAL

BANK

; 2

are

become the leaders in this

segment of the industry.

have

one of these,' and I
already
pointed
out
the

growth prospects for those companies who can indulge in automation
through making a wide

i

wmi

OF SALT LAKE CITY

V

FIRST SOUTH

AND MAIN
,

p j

5

o;

■

Correspondent Banking
Headquarters

cd

'J-

>*'■
>,Z

,

7s

for the

<■

;

}-p~.

Obviously, au-

Intermountain West

O;

<b-(

rTNf-.;
Ft

:

>;

i

Z'

*

A

and
standinS companies in this growth handling systems engineering

h';:

RECORD

OF

FAST

p* I

ACCURATE

ft

To identify a few of the out-

line

of

control equipment

in their own shops. Secondlv, we have to look at the
possibility of achieving substanElecfronic Business Machines
tial cost savings through automaLet's look next at the suppliers competitors,
although
at
first tion of manufacturing processes,
of electronic business machines— glance, thev might seem so. Then,
o*
jmnnrboth the so-called giant
brains there is Minneapolis-Honeywell, tance to the assembly line opera.

manager

Reynolds

MINNEAPOLIS, Minn.- Ray JX
Habermann is with Reynolds

;w

out

oAuk.
SAGE

AW

investment

>"

brief treatment of the elec-

instrumentation, tomation is

developing socaued systems engineering groups
should

With

recently af¬

underwriter,

and

Therefoie, the instrument maker tronics industry at best, but it
]^tio can design and manufacture appears that it is an industry in

for

was

another

FlPlSt NATIONAL BANK OF SALT LAKE

1l

Many of these pieces of

equipment will

firm

firm,

with

flow, temper- lieve we would settle upon Texas

measure pre^ire

markets

To? ana
fnT
iei.,

General Manager of a Dallas

insurance
filiated

thP

tn

cant overlook the substantial mil-

tne
the

year,

trC>1 SyStem
MS °WU ^ and there 9re 3 nUmber °f SPe"
nnif nimch** pany wil1 be in the best position cific trends in the industry which
Qto take advantage of increasing seem to stand out as the ones to
are American Bo.ch

connection,

itary

per

new

expected to grow
faster than for the industry as a
wftole

the

this

reoorted

of

for a11 Parts of an over-a11 c<>n-

market

^ntrihutnrc

ing

affen-

that they will

enjoy

increasing

and

instruments

direct

,

available

appears

to

from

Government

from

jections, it
continue

field

with

number

—

devoted to instrumentation
in trade periodicals, etc., sales of

Second, lets look at the group
of

criterion

instruments

Electronics

,,

According the maximum advantage of its
capabilities —it is not simply a
question of pulling out a tube and
plugging in a transistor. So, while
transistors and diodes are growing raPldly ir? acceptance in the

pages

II

and

.

t0 the Department of Commerce
classification, however, this segment accounted for about $3 billion in sales in 1952 aRd $4% bil-"
lion in 1955; and by every avail"

se€rrrent>

j

should

like

to

point

first, the two obvious leaders,
Beckman Instruments and Consolidated Engineering—not really

work

,

elected
Secretary-Treasurer, succeedin^
Mr. Ross, who had held the pout

in
ca¬

Asso¬

Dealers

annual

,

th?#

of

President

Investment

average

limited

Carl K.

—

Ross, Carl K. Ross & Co., Inc., hnu

succeeding Robert
G.
Wad'1?,.
Morton,
Hall
&
Rounds,
In

some

current-carrying

Meeting

PORTLAND, Maine

ciation

isthe'

tronic instruments in use in pres- transistor is quite a different
ent day technology that jt is very breed of cat from a tube; new
difficult to define specifically an circuits have to be devised to take

instrumentation field.

~

during "

this

nn^gfor^^efl/fWTV rtiVhP To-railed

.

Maine Inv. Dealers

Maine

d

pacity, so that while they may be
used in the low power end of a
radio, for

also

been

that

v

there

more

with

porate securities.

value of receiving tubes
cents, For another
transistors and diodes on

whole

work

distributor of municipal and cor¬

about, 80

thing,

baf p awarded tlx..

vestment banking firm, is nation¬
wide
underwriter,
trader
aiMl

average
is

his

Keith

characteristic

'
value of a transistor is
unit, while the present

factory

$2

t

for

be

one

of

t

,

mi-t.

iwarded^-

been

City of San Antonio
part of 1952 and 1953.

you

the"' facT

ith

h

but

used,

rann0timovertook
t

on

gunner

-?Qth

the

its

cations wheie tubes would other¬

have

hi*

office boy and receptionist for
the Mayor in 1927.
Mr. Tempt ?

Uoviousiy, then, the solid Reed &
Company* Fidelity Union
semi-conducting elements are tak¬
ing over rapidly in many appli- |
wise

hal

He

plane

aerial

on

a

lion.

their

group

in

version

the
IV

Instrumentation

are

the

an

as

} t Of Keith Reed S Go.
effect

^

or*

First,

after
was

Extinguished Flying Cross 'Hr»
Air Medal with five clusters, ami.

or

_

gauges

increasing

electronics
know-how,
both
in
civilian and military markets, has
acquired a highly significant in-

word

a

for

that you

eye On

on

But in our opinion, the
strong contender with IBM
Sperry Rand for leadership
be Burroughs Corporation,
result of its recent acquisiof ElectroData Corp. Through
step, Burroughs, an old line

company,

transistors,

and

they stand.

1?'I
which

theon.
next

is

where

on

~

-

.The

snould

l

thatwi*.y**

expected to total aoout eignt „sell "giant brains"; Rua has demillion units, with a total factory
veloped one; so has Datamatic, a
value of $lb3* million.
By i960, <jnbsidiarv owned jointlv by
this should exceed nine million
Minneapolis-Honeywell and Raysets per year, but that
a
modest gain at best.

mentioned

tnink

I

two

are

-

.

Having

700 series in its performance,

finance

German prisoner c$

a

he

of tape reeording of

the vastly increased use of electronics in office data handling,
No matter how difficult it is to
define, the electronics industry,
no

in

camp

which

b°th black and white and color
television, as well as sound, and

a^d

of

City of Dallas from 1946 tu
1952; assistant city manager frons
1945
to
1946,
and
spent
ate*

r nrteted-circSte us^of ■tion" of the flat television tube,
transist^s and everythfn« else application of light amplifiers, the ^on
_

department

director

the

'

such

municipal

assistant

the

.^Ji

nromirt
product

a
a

ex-

the elec¬

as

tronics

$200 million

over

be

can

pected to grow as fast

billion dollars each, with current

saturated.-

0)

SERVICE

FOR

66

:•

YEARS

rt

n(
FIRST NATfONAC BANK OF SALT UAKE

.

24

The Commercial and Financial Chironiele .2.; Thursday,

(688)

Continued. jrorri page

has vbeen convicted twice for

who

•Y

3

5^-6 times these-, potential

ment costs continue, to

rise, at is

believed 4hat the rise

auto

an

will be suificient to. put.

Not only did auto fatalities and accidents rise, but the
cost of claim

well—so

that

loss

whole

lines also

the

for

excellent * 'm

Since,

last

at least

in fire, auto

as

trending

costs

loss

downward,

automobile

rose

were

year

a

in

the

represent

50% of the premium dollar, a rise
in loss costs of 12 to 15% means

71/2%

to

the Important

enough

or

to

put

notable

Just

as

year

through

in which almost all insur-

lines

ance

was

so

in the red,»so

were

as,

with

being taken
most insurance lines this year,

as ocean

This has created the

fire

insurance

what

59

Aetna Insurance?

that in the 1958period, most insurance lines
should be operating well in the
black—and
this should produce
increased interest

an

shares..

stocks

been in

bear

a

should be sufficient to bring back
fire underwriting to the black,

followed

then,'

about

increase in fire rates in New York,

-

mar-

25-30%

"Edna."
have fallen

values
while

has

moved

with Aetna Insurance.

mental values of the fire .and cas-. change

offers, in
friendly

These

would

be

around

the

be the forerunner of rate increases
elsewhere.

portunity.. Insurance -is a regu
lated business and a kind of semi-

as

a

New

is

York

known

about

"strict'.' state; and if the auth-

have

value,

liquidating

or

risen

Thus there has been

25%.

of* Aetna

and

worth

net

based

of

Aetna,
The price

therefore,

stock,

ex-

opinioh,

which is $120 per share.

present op-

emergency

an

might

public

down because of the

divergence, prices
underwriting

be able to advance from its prfesent market of around 73 to in the

surance

Mr.'Hyde, yet fundamental values,
the Dr.
Jekyll —investment in-

that

neighborhood of 110-120. : This
potential gain of 60-70% costs an
investor nothing and is therefore
$n important plus value,
'
r {

of ap-

Improving Management Situation

utility. According to the orities in New York believe that
rating laws of the 48 states, in- an emergency exists, other state
rates must be reasonable, Supervisory authorities will also,
as
far as the policyholders are An
emergency certainly exists
4

-

---«

—

and

come

net

worth—up

when some of our topflight com-

A

25%.

panics are losing in underwriting
as. much as $15- to $20-million a

concerned, and,adequate as far as
the companies are concerned.
A
fair measure of adequacy over the
;

important

an

market has advanced 25%
this

about

general

Meanwhile,- the

so

important divergence

•

Should such losses continue, proximately 50%
between
the
J
certain of the smaller more mar¬ general market and insurance
^
second type of company
ginal companies "might well get stocks ,is the
greatest in more than which interests me is the improvmg management situation. An minto difficulties—and this is spe- a decade.
year.

has been 5% of earned
That is an average,
premiums.
Some lines,
such as workman's
compensation, have a. lower allowable margin of profit, ip this
case only
2%%,- But for insur¬
ance as a whole, 5% would be a
fair and working average for the
underwriting margin of profit allowed by the various state insurahce commissioners. In practice it
has worked out that way.
The

years

mu

......

.

,

cifically what

,

.

,

0

i

Ja*

V^rig(fiiCe ?x

vestor

.

,

In

automobile, rate increased
already under way; and it is
safe to predict, that before the

favor.

Following the corrective
of 1947, insurance shaies
staged an independent bull

measures

then

or two rate increases
will have been announced in al-

next month

1948

shot

and

market

and

ahead 41 %

1949, while

the

in

Dow-

underwriting margin of most all the states. Several weeks
fi3
we^ rlsing
y
profit for fire and casualty com- ;ago, rates in auto liability were 11%. It would seem that a similar
panics for the <five years ending increased as much as 30% in Cal- performance in '1958-1959.
1955 was 5.4%; for the past 10 ifornia; 24% in the state of Wash10 years later, might easily take
years, 6%;, an& for the past 20
ington, and various other sub- place.
years, 6.1%.
S
stanttol amounts in seven of th^
From.the\ standpoint .of fun«pa)-.ywestefcn staijtfe. On Feb. 1, rata|- meplqj yalufesv-price
time| investUpward Profit Margin Swing ^jyfere increased 33,% on male cfriv|ihent inc^rne and price in relation
average

•

;

So when the industry is operat-

.

,ic?ea^d

in

as

1956, clearly this is inader

quate,
are

corrective

and

called

The

for.

*-

measures

last

time the

business operated at a clearly inadequate margin of nrofit was 10

year"atro ?n
actually

1946

when there

ma^e?n

prof it

a

Corrective

measures

was

of i

2%

^
an.

anlnflaUoLrymerio^'The extent

1947; and the margin of under-

in

a( Sis

trend factOT is difficult to

!?&■ ?5°5.UJ.m?.ro„veddetermine

In, 1948 it
1949 to

went

to

in
When the pendu-

12.4%.

Massachusetts

in

Massacnusetts
;S0 on- The insuiance commissioners-have moved swiltly,
once petitioned by the insurance
companies, to grant higher rates—
and a trend factor has been put
irt the rates 80
">*> wiU »ot

taken

were

197/

8.8%, and

many
and

because
different

worth

the prices

or

an

added

incre-

liquidating value,
fire and Cas¬

of most

pj.ovecj management.
0f

case

improved

fhat j know of in

insurance

This

is

management
long time in

American

Insurance,

merged
several
American Auto

company

months

a

im-

The clearest

ag0

__ancj the combined company

will

have a higher investment standi

■

American

Insurance

has

al-

business, but a very poor casualty
business.-.sin fact, during the last
iq years, its casualty business lost

8% oh earned premiums, so that
its fire profits were reduced 40%
*
by its casualty- losses.
On the
other hand, American Auto has

ualty stocks today compare favor¬
ably with other extremely de-

always had

pressed times in the market, such

10

,

in 1947, or during the outbreak
of war in 1942, or during the fall

as

of

France
I

the

spring

of

1940.

believe the undervaluation

individual

the

is

in

deep

so

group

today

as

that

of

whole

a

reason¬

a

first-class casualty

a

management, and during the same
years had a margin of profit
Qf 4% on earned premiums. Had
American
4%

earn

its

been able to

Insurance

hs casualty business,

on

overall

profits would have
is certainly reasonable to assume that the casualty

doubled.

are

so

It

ratin«

iuris-

produceTan inadequatTnmrgin^l diGtions- But^ in general,

able expectation is for an advance
of approximately 50%. Yet, some

problems of American. Insurance

stocks will do better than others-—

casualty
Auto.

I

would

like

to

now

move

will

solved

be

by

know-how

superior
of American

the

It is not difficult to foresee

if takes
^
into account the trend in cost set- |rom the general to the specific earnings of $3.50 to $5 per share
s\ving too far tlements of claims over the past in order in indicate some of the during 1958-59; and this stock,
.
3 several years and assumes that values which are obtainable in which currently yields close to
insurance
stocks at the
present 5% and sells around 27, would
der to crea^ an average over the this trend wiU COIitinue for the
time.
seem
to be able to sell in the
neriod
I believe
in- the
next year or two when the claims
35-40 range.
^rlv stages of such swine
resulting from accidents in 1957,
What securities look attractive
In today's market, there is inwards in the underwriting mar- for example, will probably be setirt
at the present time ? I shall name
tl d
, ^ .'d f
1
creasing attention paid to value-

fhf Ifiiir
h ®

tonrif

p

we

are

a

gin of profit

1947,

rective
fire

3

now.

there

and

ceases

two

were

taken

measures

in

o?

mil tike soml
taKe_some
wan

nolieies

tm-rv,

S S

for

Q.nw

nni;

tion of policies

it will

ar

fully

Rates

and

in

preach
as

arp

In 1947.

fire,
enine

t

^

new

r!

me

vear-to-vear

nrst

year to year

than two years.
recent favorable

only 5%> although

jf «he « as
of
h»d run as high

rate

1955.

Increased

^ar

18% ahead of

publicity
on

avenue

which
tn
a

nco

of

the

heightened empha8isu, °"

ap-

sor*s

for

the

better

experience,

The state of Connecticut has led
the

sustained el-

way

in

better

law

enforce-

men'. with the result that its figures have become most favorable

been appropriated by the National
Board of Fire Underwriters for a

Here in New York there is

13-week

campaign on TV and
starting this March to en-

safety

campaigns are probably the rea-

com-

mi*




about
and

the carnage on the highways

vlhie.t0Ablsum oTsTmillioT ha!
radio

first

the

in more

as a whole rose

Education

That is

year,

figures' auto fatalities for the year

full
ti

^

effective.

There is another
ranip*

favorable trend. In

Because of the

ouL+Uro

miKr

become

more

vear

decrease

l

take^a

r om

a

dr0pped 12% below the previ-

ou„

^

ZZL athf

threeor^ f! vev'e sf
I? rete increase for the
to

to

a

rotor

insurance

°ctober> for example, auto fatalilies

time tor tnese to
to

are

approach also

auto

y that

become effective, because so many
of the

t

,

the

1947' recentlyis auto fatalities have
and »
i"terestm* to note

eariy

thlle

time for

P

another

,

five
different
types which
emplify certain theses:

Merger Wilh

First,

^own

win

P

is

solving

Problem, rates being the first, and

thfmos^

course

-

»

in

both

LbVi9«' ^VirsTstaeelhe
fon

cor¬

automobile
are

..

.

ud

There

In

#

,

a

bill

which would suspend for 60 days
•

the operating license

of

a

driver

a

"Plus"

ex¬

er

Value

I

candidates

come

and

very

have

'plus"
Aetna

fine

after
a

and

"plus" value.

value

be

may

therefore bedesirable properties
may

would

Insurance

old

which

of

Such

seem

to

a

be

Hartford,

a

with

a
good, alrecord, extremely cheap in itself, selling at

though
about

name

not

IIV2

notable

times

last

vestment income and at
of

45% from net worth.

year's

in-

implies,

of the

best values

in in¬

today lies in Great Amer¬

It

is

statistically extremely
cheap, but in addition has such
a strong capital and surplus position that

it

is

outstanding.

It is

selling at only about 10 times last
year's investment income and at
a discount of 50% from liquidat¬
ing value. It sold as high as 44 in
1954, 2V2 years ago; and it is not
at all difficult to ^ee the stock
52 in the next several years

which would

be

government employees, first! r
level; then at state 1
municipal.. It also now sells ;
to other groups, such as retired ;
army officers and college profesr ;
sors, etc. — the type of people *
at the Federal

and

whom it does not believe will be

at

profit of 50%
At that time,
I would expect its investment in¬
come would be $4.25 to $4.50 per
share; total earnings $5.50 to $6.50;
and
net
worth,
assuming
no
change in the general stock mar¬
a

80.

So that at 52

;

the country at 1
night and running into telephone
poles.
Its experience is conse- :
quently better than average, and !
its costs are way below average 5
driving

around

because

it-

hoes not sell through

agents. For .^e^past five years, :
ending
1955,' ? its underwriting /
margin of profit was 24.2%—and ;
believe it or not, for the past 10 !
also

margin

its

years,

of

222%.

•

.

■

;

Insurance

;

was -/

'

'

Government

in

So

was :

five

past

premium .growth

its

years,

profit

the

24.2%.For

:

Employees *'

have

strong

-

growth -company; with a wide
margin of profit, a low cost pro-

-

you

a

•

automobile

the

ducer' in

field,
can compete with All State
price basis, and solely con-

?

centrated in automobile insurance

v

which
on

a

will

which

total

foresee

in¬

rate

It is not difficult to "*

first.

creases

the

receive

earnings

the

in

57, might well sell in the 90-100
"

The "Tiffany"

.

Some

>•.'

issues

people like to buy

■

,

Only

Tiffany
of the
chips at the present time is

blue

Fire.

Hartford

has

It

a

distin-'

guished name and an agency plant
around the countfy, I believe even
its competitors would agree, that
Its top manage¬

is second to none.
ment has been

rejuvenated in the

several years and is both
progressive and aggressive. It is
also a high-priced stock, and for
that reason it may have a certain

share

and,

1958-59;

by

on

these

earnings the stock could well sell
,

around

is approxi¬
the current

200, which
50%' above

mately
level.

underwriting profits re¬

When

turn, there will be a rash of divi¬
increases.. As I mentioned

dend

.

earlier,
investment income al¬
ready has increased about 25%:
since the last round of dividend

industry, which
quite prob¬
able that investment income by
1958-59 will have risen 40-50% in
increases

was

in

in 1953.

many

the
It

seems

companies since their last

dividend

increases.

So when un-/

return, divi¬
dends will be raised importantly,
and there will be many stock divi¬
dends. These actions will act as a
derwriting

tonic

upon

market

and

profits

the

est

to

insurance

cause

quicken.

share

investor inter¬

That will be the

flowering of the insurance share
cycle,
again

and

insurance stocks will
the benign coun¬
Jekyll.

assume

tenance of Dr.

That also may be a

time for an

agonizing reappraisal of insur¬
ance stocks—quite
opposite from

appraisal which seems appro¬

the

priced, and I

priate today. We must thank Mr.
Hyde, for giving us this oppor¬
tunity—for without the violence
of the underwriting cycles in fire

there will be more buyers for it
at that time than there are today,

as

Auto

Insurance

Stocks

A fourth type of stock which
1958-59, its earnings could rise to
$12.50-$17 per share—at its cur- seems attractive is the growth
rent market,, it- is selling at
only^ type in the automobile insurance

-

plus value. It is not difficult to
foresee
earnings of $15-20 per;

would still be very at-

of

.

past

tractively

stock, so that in -a period
profitable underwriting such

f{
:

the best, the blue chip or
stocks—and the cheapest

this stock

sure

,

:

discount

am

;

neighborhood of $10 per share by
say
the middle of 1958; and it /
would
appear
that this stock,
which is currently selling around --

—-

from current levels.

ket of around

;

concentrated

It posses-

a

ses considerable leverage, having
$150 of premiums for each share
of

one

ican.

believe the insurance
business
is
going to witness a
great many mergers, both in order
to improve the competitive
position of companies and also to
ed costs through^ larger
operations. Companies whicn are mergsought

and

surance

:

by word of mouth.. It has; as

~ name

area.

and

there

different kinds of auto rates

manv

to net

receives

1,1 ment of value because of

?

1945, 1946, and 1947, when insurshares
were
again
put of

ance

are

>ng at a negative margin of profit

.

.

insurance com¬
missioner is supposed to safeguard
against.
;
'
an

>
;

upon
•

Chi-

to

my

basis, will be* ualty companies, the Dr. Jekylls,
announced shortly—and this will investment income and net worth
pn

its

cago), Aetna Life might well consider making an offer of exchange

funda-

the

and

has recently been bought

control

and

.ilnsuraneeI

it is a low Cost producer, ;
it sells, through "the;mails::

since

Therefore, to keep Aetna in
Hartford (one important Hariford
company

^Employees

solely upon, automobile insurance; and it should receive all of the benefits. .* Further-

more,

between

any

by "Diana" and

Since

Furthermore, it is believed an

;

Aetna

with considerable misgivings at
attempt on the part of outfire and casualty, side interests to purchase Aetna,

years,

have

names

•

concentrates,

Because of the

of

good one for the auto-:

a

ernment

Insurance,
the former would look, I believe,

For the oast more than two and

one-half

fore be

mobile insurance companies. Gov-:

* .;*

,

'

for-one «•

The year 1958 should there-"

tive.

business—and

and

Life

Aetna

insurance

in

are

fully effec¬

.

natural candidate than

more

similarity

automobile lines ink company receives its money right ket. They reached their peak in
other lines, away —the relief is immediate, August, 1954, just before "Hurrimarine, beset by the This, plus the increase in rates, cane Carol" struck the Northeast,

gigaptic "Doria" and "Stockholm"
losses, were in the red also. The
year 1956 was a notable, one in
which
practically * all insurance
lines—or products—lost money, a
truly catastrophic year.; * \'

e r ger

an

it would appear

In addition,

the red.

such

the profit margin

in

reduction

a

of 6

1956

*

increases 'first;

policies

the new rates will be

possibility,
exchange
Of
stock
with
its
fellow
companies
in
Hartford, Connecticut General, or
Aetna Life. It-is known that Connecticut General desires to enter

a

values. - Since 1947, the cost ' of
dwellings has risen 42%. In homes
the value of contents has increased
a great deal, not only because of
the rise in prices, but because of
the addition of more valuables,
Few people have the insurance
they require. Since most losses
are partial losses, the companies
will actually have very little more
at risk if. an assured takes out
10% or 15% more insurance. The

as

as

year

in

costs

probably

12to 15%.
rates

settlements rose

.

.

corrective-measures

courage people to bring their insurance up to the new and higher

severity of auto

the frequency and

receive4 its "rate
'and since most

♦ SoJ%H<5-CompanyIs'gOodIp'itsCII'
rates-t__but is- also, in tny opinion; an yea^i bniy;;by the spring of J958T

these. im-

portant lines in the black by 1958.
accidents.

Automobile, insurance" will •

field;

earn-

Although, claim settle-, ihgs.

spaeding.

February 7,-1957

and

Ole

casualty, they might be like
Man River — and just keep
along upward on their,

a-rollin'

constantly

rising -investment

in-

Number 5610

Volume 185

.

..

Rf|||Kr2MlA; Fnill £ If All
U1HIH <HIV # «tIIVII

and net worth. To Mr. Hyde,

come

under-"'

the mischievous

therefore

(689)% 251.

Commercial end Financial Chronicle

The

.

•'

offering.-

v -

and its subsidiaries are engaged

>

..

".Net proceeds fromthe sale > of principally in the manufacture and
cue
.debt of gratitude.'ior; the:
Unffnilg UIIIIWWfH^^
will be used by sale of iron, steel, -and various
gross ' undervaluation and eonse-:ki ^
"% " S? bank loans and to increase steel products^ and the mining or
c°Tparny^or the repayment
of
writing, side, pi- th£ ijouse^Q yeV-aiUf^.

-ill

a

,

quent

opportunity 'existing

great

stocks today.

in insurance

is

«'
'"'

Ijftfr flffpfpH

headed
by Blyth & Co., Inc. and The Do¬
minion Securities Corporation of¬
fered publicly yesterday (Feb. 6)
$26,000,000 of 5%% first mortgage
sinking fund bonds due June 1,
1963 and 910,000 common shares
of Stanrock Uranium Mines Ltd.

at

•

WebbefiSipipson & Co., 208 South

dolomite, and coal, chiefly for its

Midwest Stock

7°Iklng capita1/
series

The

offering holders of its outstand-

debentures

A

are

.

.

Pwn use. ' The corporation and its
subsidiaries
together
constitute

convertible into shares of common

until Jan,

of 100%

for jn b0th

$100 principal amount of de¬

bentures,

17

each

of

shares

being offered

p.m.

Allen

,

of

an

year beginning in 1963, at a
redemption price of par, and they
will also be redeemable at option

redemption

(EST) on Feb. 20, 1957.
&

Company

investment

is

manager

banking

designed to retire $1,000,000

Exchapge. He was

Detmer & Co.

& Co. and

" '/

.

'J

Hemphill, Noyes Adds

,

syndi-

prices

105% to par, plus accrued
in each case.

sidiaries

have

an

estimated

bined annual capacity

is

now

—

with

Howard

Hemphill,

Insti- Noyes & Co., 340 Main Street

Bache Adds to Staff
(Special to The Financial Chroniclb)

com¬

DETROIT,

of 1,501,200

Mich.

"joined

has

—

the

tons of pig iron and 2,514,500 tons

■

Tossy

of ingot* and steel for castings.

interest

>

Steel

WORCESTER, Mass.
Lurier

plants of the corporation and sub¬

from

ranging

and

Iron

American

(Special to The Financial Chronicle)

.tute, the iron and steel producing

per

1957.

Subscription rights will expire at
3:30

The debentures

will have the benefit of a sinking
fund

common

stock held of record Feb: 5,

steel inS°t capacity.
Based on
ingot capacity as reported to the

the debentures be-"

cases,

ing taken at par.

basis of $100
of debentures

the

on

principal" amount
for

Street, .members of the*

.

subscription price

each

Salle

formerly with Taylor

scribe for $19,903,300 of 4%^
$0, 1967, and $35 thereafter until the ninth largest fL h«!c in the
producer
fund, convertible Jan. 30, 1977, unless previously
4r^11oft.JAvi
Jan. 31, 1977, at- redeemed, subject to adjustment, steel industry on the basis of rated
a

,

livan has become connected with/

'

T

*

CHICAGO, 111—Richard A. Sul-

La

,

-

Special to The Financial Chronicle)

Bache & Co., Penobscot

•

'

i

Alfred F-

staff

of

Building.
T

the bonds are pay¬

on

the

i

quarrying of irorl 0re, limestone,

vTies~ A sinking
debentures, due

units, each of which consists of
$1,000 principal amount of bonds
and 35 common shares.
Principal

of the holder :

option

in either U. S.

-

J*'*>ank capital. and to increase
working ,foan$

ing common stotk, rights to sub--stock. at $30 per share

in

able

o

:

The Colorado Fuel & Iron Corp.

OeC1YnYI€S ' lOTKHra

and interest

,

_

4 An underwriting group

are

Bjf AI16II & uOi ufOlip

:

.

Siaareck Uranium

The securities

:

With Webber-Simpson

Cblwa^.Fuel^Iron Cor^.,

c?]e .which is ""^writing ^

Canadian dollars.

or

„

Units aggregating $16,000,000
principal amount of bonds * and

•;

,

560,000

common

shares are being

offered

for sale

by United States ;

underwriters

sale

in

the

and

Canada

is.

balance

being offered

simultaneously

t

for

Canadian *

by .the

underwriter.
In

the

the price

States,

United

of each unit is $1,000.
Net

i

;

offering

the

of

proceeds

will be applied by Stanrock to

the

repayment of $3,000,000 (U. S.) of

first

5Y4%

bonds,

mortgage

due

_

June 1,1957, which were sold last

The balance will be applied

year.

to

in

expenditures

-

with

conjunction

Stanrock's construction pro¬

gram

for

nium

in

the
the

production
Blind

Ontario.

Uranium

Mines

incorporated

was

Province

of

holds

1956

ura¬

of

area

r

Stanrock
which

of

River

in

Ontario
leases

the

March,

19

on

Ltd.,-

in

claims in the Blind River

mining
area.

An

exploratory drilling program has
been completed by the company
and two mine shafts are

sunk;
with

milling plant is being built

a

designed capacity of 3,000
ore per day.
Under a spe¬

a

tons of

cial

•M-

being

now

price

the

contract,

company

has agreed to sell uranium oxides
up to a maximum value of $95,000,000 to Eldorado Mining & Re¬

fining Co. Ltd., the sole purchaser
uranium

of

ada.

concentrates

It is planned

that

in

Can¬

deliv¬

ore

eries under the contract will

in

begin;

November, 1957.
The bonds

ir\a

fund

entitled to

are

sufficient

to

retir«

600,000 principal amount
1959 and

on

and,

company,

at
up

Laboratories in 1948 with apparatus

on

including Feb. 1,

the

to

option

of -the

additional $1,-

an

600.000 nrincipal amount on
such date, in each

Bell

each

at par.

case

Telephone System Salutes Three
New Nobel Prize Winners

Halsey, Stuart Group
Offers B. & 0.

Equips.

uf»»q

i'-

MXU- .4'
'Mil.

Halsey, Stuart & Co. Inc. headed
underwriting

an

fered

which of¬

group

ment

Ohio

&

trust

RR.

->

The

certificates,

ment of

a

total issue of $6,945,000,

scaled to yield

suance

install¬

first

from 3.80% to

4.05%, according to
and

maturity. Is¬

the

Interstate

Commerce

Com¬

mission.
The

Walter

Bardeen,

H.

Brattain and William Shockley

honored

to

issue

secured

be

of

by

certificates

Diesel-

14

locomotives and
steel box cars, estimated to
not less than $8,687,980.

Other

1956

The

This is the second Nobel Prize

Nobel Prize in Physics
to

has been awarded to the three inventors
of the Transistor,

a

of the

1

They made their revolutionary con¬
tribution to electronics while working at

at

members

of the

offering

to

We

have

been

vironment

for

able
this

to

are

provide the

great

a

W.

are:

Dick

&

Merle-Smith;

achievement.
f*Dr. Bnnlern

Pressprich & Co.; Baxter &

the Shockley

Co.; Freeman & Co.; The Illinois
Co., Inc.;

Inc.;

Wm. E. Pollock & Co.,

Shearson,

Hammill

&

Co.

and McMaster Hutchinson & Co.




BELL

TELEPHONE

SYSTEM

achievements

Bell

reflect honor

on

engineers who work

Telephone Laboratories.

These

doing research and development in

wide variety

of fields,

are

contributing

day to the improvement of cornmunications in America.
every

en¬
.

*

group

Such

men,

proud

of elec¬

diffraction.

all the scientists and

Telephone Laboratories in Murray
Hill, N. J. Discovery of the Transistor
announced in 1943.

In

awarded

Telephone Laboratories scien¬
1937 Dr. C. J. Davisson shared

Nobel Prize for his discovery

tron

transistor effect."

was

Bell

tists.

for "investigations on

semiconductors and the discovery

•

R.

Bell Telephone Laboratories

at the

for accomplishments

Bell

entire

electric switching

cost

John

sale of the certificates

subject to the authorization of

800

are

maturing

1958 to 1972, in¬

clusive.

is

Drs.

'V

4% equip¬

certificates,

annually Feb. 1,

are

?

yesterday (Feb. 6) $3,360,000

Baltimore

are

Bardeen*. Dr. William Shockley* and Dr. Walter H. Brattain, shown at Bell Telephone
used in the early investigations which led to the invention of the Transistor.

(Left to right) Dr. John

$2.-

Feb. 1,
each Aug. 1 and Feb. 1

thereafter to and

1963,

sink-

a

.'

*

.

ami Dr. Shockley is with,
Semiconductor Laboratory, of Beckman Instruments, Inc., Calif.

is

nun-

with the Vnirersity of Illinois,

26

(690)

The Commercial

Continued from

first

denced

page

aqd^Financial Chronicle

by Divtjpsified Investment

.

.

Thursday, February 7, 1957

.

Missouri

as

Pacific

Fund,

Funds

INVESTMENT
FUND

tr

• j

j

closed-end
U.

,

funds,

S.

,

and

funds.

&

,

almost
Of

Foreign

the

the

latter,

continued

its

policy of realizing security profits
by selling $4.1 million of securities
and

refraining

has

Nalimat

1953

since

—

it

virtually
from making any
as

—

purchases.

Income, SewAf

On

the

chases

WRITE FOR

FREE INFORMATION

other

hand, equity

exceeded

sales

in

pur-

the

in-

dividual instances of Boston
Fund,
& Howard Balanced
Fund,

FOLOER AND PROSPECTUS TO

Loomis

of their long-term

Establiihed 1930

sented

"High grade common stocks, in
the Managers' judgment, are
erally
overpriced
at
this
time

notably

Tri-Con-

even

greater

amounts

cautiously invested

chases

be

or

senior

of

in

in
$30

more.

follows:

INVESTORS
Free of Pennsylvania Personal Property

FUND

MUTUAL

A

'l

as

in¬

the

as

market

stocks

interest

despite

money

and

bonds and preferred

on

higher,

"

a

sion and

divi-

"Cautious
"In

GEORGE A. BAILEY & CO.

recent

described

PA.

But

Not

of

description

'cautious'

The

Heyde,

com-

i

~r ejs p e c t

and~President
Mutual.

and

1

v e

of

y

The

Fund

-

present -siktation

machine.
erator

At

Inc.:

can

chanical

such

Rubin, President

due

the

of

*.

,

failure
we

will

or

me-

In

result.

believe tne prob-

Tbe

of

.

Investment

a

t^the Preeent°CTisis
East

f

...

to be

seems

market

more

than'a

Four

one.

462-468

stocks

tests

Dow-Jones

our

_

and

the

tight

money

domestic business

Putnam

participated

that 1957 will be another

year

of

level

the

under

in

potentials

number

a

of investment fields remain

highly
promising/" Is" the conclusion ex¬
pressed
in the ' Trustees'
letter
of

Shareholders'
National

for

Trust

Securities

Corporation
timate of

of

&

Boston.

Research

accompanies
1957

a

its

- es¬

range-of 550-450

the Dow Jones Industrial

with

erage

though

the

wider

Av¬

"Al¬

comment:

variations

earnings of individual

*

ra'te

in

the

companies

Axe-Houghton

Stock

Inc-> concludes: "In

view

Fund,

of these

®

'

to

"balanced"

employ

funds

in

of
-•

i

jssues

e

&

on newer industries, those relating to armament,

1 n-a

_

f?

,,

resources,

^_

acauired
were

outstanding
^ar ouahtv

were

?,mha tl
purchases
at

-i

higher yields than

available

securities

of

-

dl
An Important"

peared
REQUEST

to

relation

from your investment dealer

were

be

to

...

selling too
foreseeable

we believe would reduce or partly
offset the effect of any possible

Over-Pricing Seen

Street, New York 5, N.Y.
H.
of

I.

Prankard

The

that

2nd,

Affiliated

his

company

decline

President

Fund,

reports

in

general

business

ac-

Our

tabulation, and

specific

expected

portfolio

that
were

uidation

try

analysis

in

the following indus¬
department and mail

groups:

order, building, consumer finance,
Bought on balance were
banks, coals, drugs, papers, nat¬
ural
gas,
radio-TV, steels, ma¬
chineries, and utilities (the latter
freely
but
not
uniformly).
A
and rails.

mixed attitude

the

aircrafts

shown toward

was

and

airlines,

farm

chemicals, electrical
equipment and electronics, foods,
metals, office equipments, rubbers

equipments,

motors.

In

the

latter

group,

Three" were divided
between buying of Ford, and liq¬
Big

_

Funds group.

Th

mana{?ement

Ihese, management

units reinvested the sale of $12,-

in

an^ easinS of credit which
may.occur later*m the year."

it

Increased emphasis on the bond

rornnr_tp

honrl_

The

oorDoratec

of

nearly 58,000 shares.
the

In

fer

into

issues

oils, although the trans¬
the

Western

of

Hemisphere

continued,

was

timely

many

growth

believes

suggestion

its

that

investment

American

the

oils

pur¬

did

stocks

because

market

prices

for

segment

of

the

portfolio

is

evi-

corporate bond?. The corporates

chase

us ac(luired include such prime
obligations as General Motors Ac¬

manifest

might

ceptance 23/4s, such high-yielders

substantially"

of

changes

reveal
the
retrenchment
policies
chiefly directed toward liq¬

"the

tivity. This portion of the port- 050,000 worth of common stock in
folio would be likely to benefit $12,207,000 of -: Government and

Seduced from

has

is

POLICY TOWARD

and

Stock-to-Bond

most

reduced."

Group, Incorporated

sound base

a

good average

a

prices

and. tho.se that would benefit from
Switch
a r^se *n the general commodity
A striking example of the deuidation
of Chrysler, and more
Price le.vel- At the same time it
high in has maintained a substantial re- fensive policies engaged in can heavily, of GM, which was sold
earnings ser*ve of preferred stocks which be seen in the action of the United by nine managements to the tune

the

promising situations. For example,
certain 'blue chip' stocks that
ap-

man¬

agement's judgment.

slock

maintained."

be

:n

*70/

Most of-these

?

Section

Placed emphasis

f

sources.

fro

•

26%

to

governniegt. 'bonds

®

to

of

INDUSTRY GROUPS

unusual
increase
an&lrred stoc£

22%
j

level

corn-

iri.rM-pj

while

for continuation of

the

the defensive port-

on

bonds

from

p^ntir!,Tiir

expected in 1957,

are

holdings."

ii^

Blue

changed considerably
during the year as we endeavored

When

Thf incident® ^..increased m-

^ancuricaiion
or
»
Chips, as follows: "The1 rather complicated tendencies the
composition of the Common Stock management of your Fund
has
a,

investing

stock

terest rates

c.

in
of

par-

the

q

de-sanctification

re-

and

inter-"J0"? area is abetted by WellsituaPresident^ "Y^r Fund

the

.

widespread

stocks, with the

BEFORE

an

spec¬

strongly held."

are

"Profit

ri^-it is planned to

these reserves' to add to

mon

m;rnv

MAGvailing
economic
dross^cur"**
prevailing
cross-currents, Emerson W. Axe, President
A'
TjAMO^inv,
ciLu

on

been
seems

use

Company-of

.

national

still

increased.

have

selec-

uncertainties, domestic and

is

were

moderately'in August
s*|nce then our b'dnd reserves

■

.*

"That

Middle

Mr.
inc.

bonds, preferred and

investment

P.

Selected

trying
circumstances
this
year
(Eisenhower illness, falling bond
prices, war over Suez) indicate

per-

duced

be extremely important,

the

a

his

Edward

Shares, Inc., says:
"Stock prices are not especially
high in relation to earnings. Cash

time the op-

a

reduce" speed

must

this instance

Jonathan B. Lovelace, President

savs
says

picture."

Incorporated 1933

63 Wall

this

haps be descried:1 with a homely
analogy.
An economy operating
at full throttle is
subject to
stresses
and
strains just like a

Selectivity

but with perhaps

_,r

Distributors

o

intensified

for

need

situation

OF

ON

is

.......

countries,
and
to
the
possible effect of the tight money

ADMINISTERED FUND

PROSPECTUS

der

"The

tivity is widely emphasized. Says

satellite

THE FULLY

A

1957

are

American

ulative

ticularly those-df 'short maturity,

Geo^epStnam

Th4

Boston.

in

in accordance with

FORECAST FOR

investment

,

Messrs.LJohnston

Johnston

reces-

policy

investment

our

of

fair

proportions

by

Chairman

a

have

we

as'cautious but not bearish
tdui
jut> out not
oeaiisn,

Fund

common

similar vein

a

time

Bearish"

months

Trustees

A mutual fund

is

general."

<<T

in

In

lower stock market in

i

-•••••,-

di,

Securities,

•

of^hTFund

possible business
a

Intensified

from your Investment
Dealer or

Group

prices

par¬

ticularly over the long-term,
by
no
means
lacking.
In

stock market
-

interesting
found
in

taken

cases,

at

Bond Reserve$ increased

propor-

has

Fund

of

quality."

special situajudgments in

the

list

Expressions of bullishness,

afforded ^higher income dividends still
provide yields
than has been^available for over which are moderately above
20 years on ^bopds of similar yields of comparable quality. The

defensive position in short-term
bonds to protect against the risk
of a general market decline, while
it holds high
grade, long-term
bonds and preferreds to provide

continued

tightening

forced

dend rates
Send for FREE Prospectus

LAND TITLE BLDG., PHILA. 10,

be

may

man-

which

of

mind,

emphasis

the

of

Since

several

acquired

were

Lacking

from

expansion of business activity and current income, and a selection of
abilities favor some slowing down
the advanced level of stock prices., special situations to give the Fund
-jft the economic pace
we do not
There was the further considera- representation
in industries and
for a mechanical failure For
tion that senior securities became companies that, in the Managers'
>this reason
^ifxe Common stock
increasingly attractive during the judgment, could advance in 1957 investments
year

income.

^

in

l&ot

small

of

number

its

Long-Term Confidence Not

.

vesting in a
diversified
group of securities selected
for possible long term
growth of capital and

845

inherent

be

to

A

opportunities

shifted moderately further in
1956 in recognition of the increased
risks

face

the

carefully selected
tions. With these

was

SOVEREIGN

in

trade recession in

tions.

securities.

"Investment

maintained

expected

pur-

Thus, the philosophy motivating
the latter closed-end giant is expressed by Chairman Francis F.
Randolph in his annual report as

systematically
of

holdings.^ In

von

cases,

is

strengthen

to

issues

of any

some

were

amounts

such

ment

in

accumulated

market

explaining his current
policy, whose bearish-

investing

funds

has^taken
advantage
of unusual conditions in the bond

preferreds,"
js the
unequivocal statement in
support of this position made by
Arnold Bernhard, President of the
Value Line Fund.

ness

of

Oil

Burroughs 4^s,
and
another newcomer, the bigyielding Northspan Uranium 5%s.

The

agement

relative to bonds and

Further

transfer

a

new

Sinclair

new

repre-

preferred stock .^holdings.
the Semi-Annual
Report,

other
hand,
business
continues
generally
good and
the extent

tinental,

year

5s, such

tne

as

Fund's

your

assets
invested; in
bonds
major part of this,increase

pros-

confidence in the state of business,
Mr. Bernhard continues, "On the

ica,

New York 5, N. Y.

may

growth

last

was-.made

pects.

vestors, Investment Co. of Amerand Tri-Continental. However,

RESEARCH CORPORATION

Shares

valuation

a

Sayles, National Securities
Income
Series, George
Putnam
Fund,
de
Vegh
Mutual
Fund,
Dreyfus Fund, Fundamental In-

NATIONAL SECURITIES &

120 Broadway,

increase

in the proportion-jof
reflected too full

many

Eaton

YOUR INVESTMENT DEALER OR

Inc.
Say#. William Gage
Jr., Chairman, and Hugh
Long, President: "A moder¬

ate

,,

all

43bs and the

W.

Increasingly Cautious

j

United

convertibles

Brady,

MUTUAL

A

doubtedly resulting from the

clear

as

have

been

a

not

pattern

as

expected—un¬
re-

DECIDING

get the booklet-prospectus and
record
from

of this

your

Mutual

Fund

investment dealer

If

The

Qeorge
PUTNAM FUND

ELECTRONICS

K.

of Hoston

TELEVISION-

C1151 o d lan

FUND, INC.
"A

ne

n

d,

o

A

Covering all classes of
securities,

Management Corp.

specific

each Fund with

investment

or

135 S. La Salle St., Chicago 3, III.

|

Name

| Address

^^City-State.



|

Company
seeking long-term

purpose

|

|

60
NEW YORK

Distributors, Inc.

Xlie

Congress Street, Boston

CHICAGO

LOS ANGELES

WASHINGTON

ORLANDO

50

\

the

'

CAPITAL

GROWTH in

expanding Canadian Economy

ible GROWTH

Prospectus from

Ask your Investment Dealer
forfree Prospectus or write to

Putnam Fund

poss

fully managed

Alutual Investment

a

For RESERVES, INCOME

115 Broadway, New York 6, N.Y.

Ltd.

ana

BALANCED FUND"

Television Shores

|

f€

]Fund

your

local

investment

dealer

or

Keystone Company of Boston

Cong ress iStreet

Boston 9, JMass.

I

Volume

185

Number

current domestic

5610

.

.

buck

inventory situa¬

tion.

GROUPS

SOLD

57,000
tion

Selling of Department Stores

renewed

department
area

store

as

mail

and

of the market.

In

ticular, the 1955 split Sears, Roe¬

total

of

over

post

-

Investors
its

Mutual

holding

46,200

Massachusetts Investors Trust

t

t

m e n

wi^H

Company

fund

no

twin

mail

reported

order

controversial

of

case

leader,

Montgomery

closed

its

out

contrast

ments,

to

the

tracted

shares.

30,000

these

retail

two

food

In
seg¬

issues

store

buying,

some

Building Issues Lightened

the

at¬

America, and Delaware Fund.
Liquidation
also
prevailed
in
Armstrong
Cork,
C e 1 o t e x,

notably

Safeway and First National.

of

Masonite, National Gypsum, U.

Balance Between Gash and Investments of 72 Investment
End of

U.

and

Gypsum,

American

Selected

Heavy

Selling of Finance Companies
Beneficial

S. balance—presumably

Preferred

Com. Stks. Plus Lower

Dec.

Sept.

Broad Street

10.8

41.1

36.8

Income

For

GENERAL

6.4

23.3

22.9

27.6

28.0

52.4

74.1

7.8

52.9

49.1

63.6

9.8

4,386

2.6

615
i__

557

8.8

694

331

5.9

3.0

24.2

28.6

69.9

68.4

7,754

6.6

5.4

1127.5

|[29.9

$65.9

$64.7

v

Investing-.

Investment

13.5

64.2

1,620

1.4

1.7

17.7

17.9

80.9

80.4

8,355

11,787

7.4

9.9

18.9

17.1

73.7

73.0

1,935

_

Fund

2,271

3.0

3.4

24.6

23.1

72.4

73.5

Dodge & Cox Fund___

361
.___

442

7.4

8.4

23.7

22.8

68.9

13,005

6.8

7.5

*25.2

23.2

68.0

5.1

8.8

20.4

20.5

74.5

70.7

Prospectus and Literature

Group Securities—

Fully

from

Administered

Institutional

Fund

Foundation

Investors

Mutual

Fund

182

Knickerbocker

Fund.

Mutual
;

Life

7.8

88.8

87.2

31.5

28.6

67.7

70.2

370

6.1

6.4

24.9

24.6

69.0

69.0

1,337

8.3

10.3

23.3

24.1

68.4

65.6
55.5

10,938

8,465

20.8

15.8

26.2

28.7

2,630

3,058

8.8

9.7

29.4

29.9

61.8

1,648

1,034

15.5

8.4

7.1

9.9

77.4

INVESTORS PLANNING CORP.
ot America
60

60.4
81.7

Fund

Securities—Income

Nation-Wide

9.1

1.2

53.0

Investment Fund__

National

5.0

0.8

J

Fund__

Loomis-Sayles Mutual Fund
Massachusetts

2.1

11,816

325

__

478

7,775

1,114

Mutual

Johnston

1,075

1,558

2.1

3.0

11.2

11.2

86.7

4.6

5.3

36.2

34.6

59.2

10.1

32.9

30.9

59.0

Street

17,

N. Y.

NATIONAL DISTRIBUTOR

59.0

70.6

York

60.1

8.1

42nd

East

New

85.8

1,193

Securities

73.0

England FundGeorge Putnam Fund

1,106

1,386
1,424

7^813

4,867

6.0

3.6

23.4

23.4

Scudder, Stevens & Cljark Fund—_

5,514

2,651

7.9

3.8

32.7

34.2

59.4

62.0

20.3

19.9

70.6

72.6

52.3

55.3

New

Shareholders' Trust of
Stein Roe &

Value

Whitehall

Boston.

1,742

Farnham Fund_____„

2,306

11.3

13.9

36.4

30.3

3,744

34.9

35.4

22.9

20.4

42.2

32,682

____

.__

42,108

5.9

7.3

27.5

26.1

66.6

66.6

89

1.2

1.1

47.7

46.5

51.1

52.4

—

Blue

tde Vegh Mutual Fund
Dividend

5.0

87.7

84.4

•

,

Fund

None

None

84.1

86.4

Free from Personal Property

None

None

99.5

97.7

Taxes

9,003

9,619

13.2

12.9

1.5

1.3

85.3

85.8

investment in

97.4

98.6

in the

86.6

86.6

71

23,170

Investors.

43

,

10.6

V

Investors

Growth

None

9.7

9.0

3.7

4.4

8,308

2.3

2.2

None

None

97.7

97.8

None

99.1

99.6

136

61

0.9

0.4

None

597

0.9

2.5

None

None

99.1

8,112

3.0

3.0

1.6

2.0

95.4

9,984

11.5

10.5

0.5

0.5

88.0

0.2

1.2

0.5

98.3

1.2

2.6

None

None

98.8

1,762

1,204

2,986
869

«

1,889

1.1

561

4.4

★ ★ ★

99.3
'■

Nationally distributed through

97.4

None

97.5

None

98.9

11.3

7.9

84.3

87.8

2.1

79.0

investment dealers

98.6

79.4

4.3

1,454

1,520

19.1

18.5

1.9

392

Stock

Copies of Fact Book
(Prospectus)
on
Request

97.5

,

None

1.4

552

Fund

1,189

3.0

8.4

None

None

97.0

9,768

9.1

15.0

0.4

1.0

90.5

DISTRIBUTORS, INC.

91.6
84.0

300

5,331
47

46

2.7

2.4

2.1

2.1

95.2

21,583
12,041

18.8

13.0

None

0.4

81.2

United

United

Science

9.5

1.7

8.2

94.0

82.3

1,664

6.2

6.2

0.4

0.6

93.4

93.2

7,777

5.0

4.9

None

0.7

95.0

94.4

1,217

3,229

3.5

8.4

0.6

0.6

95.9

91.0

,j_

1,314

1,322

19.0

13.4

None

None

81.0

81.6

1.7

1.3

1.2

1.2

97.1

97.0

3,881

7.0

4.0

0.4

0.7

92.6

95.3

Income Fund

United

4.3

1,508
7,583

Street

Wisconsin

Closed-Eiul

Fund

4,642

„

Fund

Fund

Investing
Fund

1^3™.

Why not Get the

INVESTMENT FACTS
about

SELECTED

Companies:

Adams

Express.

6,675

*

__

European

American

546

3.2

2.8

15.0

12.4

81.8

8.0

4.7

0.6

1.1

91.4

94.2

1.32^

1,143

7.7

6.7

34

2.8

88.9

90.5

7,429

i'3,987

11.6

6.0

2.2

1.7

86.2

92.3

3,457

2,116

13.6

8.5

None

None

86.4

91.5

7,013

5.4

3.0

0.1

0.4

94.5

96.6

2,8^4
2,141

2,700

11.5

10.5

0.8

1.5

87.7

88.0

3,387

4.7

6.9

3.1

2.9

92.2

90.2

11.2

§11.2

82.5

§87.4

21.1

77.3

77.8

None

86.7

89.4

International

&

Securities

620

.—I

3,280

General

__

General

American

General

Public

Lehman

■

;

Corporation

National

■,

Investors _1

Service

Shares

Niagara Share

j

Securities

Overseas

6.3

3,481

1.1

T.I

21.6

16,79$

bonds

—_

13,318

13.3

10.6

None

and

preferred stocks! Moody's Aaa through
Ba for bends; Fitch's AAA through BB for prtferrcds (or approxi¬
mate
equivalents/.
liBonds and preferrtds irrespective of quality

Dec. 31,

1956

vs.

+Common

stocks

of $4.50 preferred

Plus

Open-End

Companies

Balanced
Stock

long

Closed-End

^_

Companies

Totals




8'

<

9

11

shares.

tAfter

29

31
12

4
27

1

23

J

address

Cash and
Securities

Allocation by 71 Companies of Assets to

Defensive

Securities, and

cash, etc., and Governments—

Defensive
bonds

securities

Risk

Dec.

31, '5(J

and

preferreds)__—

Risk securities

72

7.2%

of prospectus and

on

coupon

and

below and mail to

Please send me free prospectus and other
iSELECTED AMERICAN
informationoni

SHARES.

.__

Nam*.

11.8

11.6

81.0

81.1

Address.

(common stocks plus

preferreds)

City

.State.

;

3, 111-

I

7.3%

(investment

lower grade bonds and

-

19

GROWTH of capital—and

INCOME.

■—for FREE copy

$184,906

Sept. SO, *56

Net

5

1

fa&

diversi¬

CF-11

12

)

;

term

current

for re¬
§In percent of gross assets.

only.

Total

Unchanged
15

Funds

Funds

a

135 S. LaSalle St., Chicago

Equivalent,

Jpprox.

Minus

supervises

Selected Investments Co.

Average

Sept. 30, 1956 \ \

mutual investment fund

portfolio of American
securities, selected for the possibility of
fied

SUMMARY

Changes in Cash Position of 72 Investment Companies

a

which

other information—fill in name

classification.

purchase

SHARES-inc.
...

3,151

Foreign Securities
"Investment

'

£55

TrLContinental
U. S. &

AMERICAN

84.8

1,913

12,354

American

Carriers

N. J.

36.6

j_

Accumulative
Continental

3,

95.5

30,605

Investors

United

Broadway

Camden

Common Stock Fund__

Investment

by

DELAWARE

Scudder, Stevens & Clark—
-Selected American Shares

Pennsylvania,

opinion of counsel.

98.7

None

1.3

2.5

1,596
1,356

Securities—Stock

legal for trust

89.0

0.5

and

Available

95,0

5,363
Stock-

___:

Price Growth

None

1.4

2.6

263

Trust-!

Investors

"

23,277

•

8,123

__________

Investors

Wall

varying

potentials.

growth

2.3

1

Massachusetts

State Street

in

13.6

______

Massachusetts

Sovereign

common

selected

0.5

10,263

Street

-3.8

6.9

r

15.9

Investment Co. of America

Rowe

and

12.1

3.6

230

g.

T.

proportions for their income

None

2.5

5,725

7.604

Pine

stocks

84.3

0.4

None

1,510

Capital Corp..
;_
Group Securities—Common Stock Fund

National

and

84.3

90.6

None

of bonds,

29,079

General

Investors

preferred

85.2

6.7

15.7

"

FundFidelity Fund __L

National

group

: 8.5

Energy

Incorporated

diversified

92.9

1,100

Howard Stock

Fundamental

89.1

95.3

4.7

•

a

88.9

14.8

5,144

in

investing

0.6

0.2

10.3

10.9

* * *

mutual

fully-managed

32,888
ii

Shares-

Dreyfus Fund
Eaton &

1,821

4,534
2,955

z

Fund

Fund

*

fund

37,187

1,211

Fund

Delaware

★

"

38,482

Ridge Mutual Fund

Bullock

★

A

*

Open-End Stock Funds:
Affiliated Fund-

Delaware

44.2

1,814
3,787

..

■

Fund
Fund

7.5

9.1

1,446

98

Fund

Line

Wellington

V

Boston-Type

Mutual Fund

69.3

696

A

68.8

11,655
417

Howarcf;Balanced Fund

INVESTORS

70.7
-

1,267

Commonwealth Investment

Eaton &

33.6

17.5

1,665

Boston Fund

Diversified

32.7

3,789
4,979

_

Electronics...

&

28

Dec.

49.8

9,525

Science

page

End of-

Sept.

Dec.

Sept.

4,501

Axe-Houghton Stock Fund
Axe

recogni-

on

Per Cent of Net Assets

End of

End of
Dec.

5 155

__

Axe-Houghton Fund A___
Axe-Houghton Fund B_______

C.I.T.

Grade Bonds & Pfds.

Stocks*

Per Cent of Net Assets

Per Cent of Net Assets

End of

Sept.

——_

in

Continued

Open-End Balanced Funds:
Shares.

Finance,

Financial, Household Finance,
Family Finance,
and especially
Commercial Credit, were sold on

Companies

Investment Bonds and

Net Cash & Governments

/Thousands of Dollars

Business

was

Quarterly Periods September and December 1956
Net Cash & Governments

American

Shares

principal seller.

Plywood,

S.

Of the latter two,

others.

among

selling
was
directed
against American Radiator, with
nearly
40,000
shares
sold
by
American Mutual, Investment Co.

entirely

of

shares. In May Department Stores,

n v e s

its

Ward,

liquidated

including elimina¬

buyer of the issue. In the

a

of

par¬

selling by six

a

24,240-share block by

its

America;

Selling predominated heavily in
order

I

for

shares,

of

the

and Mail Orders

the

met

managements

27

(691)

The Commercial and Financial Chronicle

.

J
I

J

The Commercial and Financial Chronicle

J

(€92)

28

Continued

from

27

page

(October
Issues in which

of

—

December, 1956)

transactions by more

-Sold-

-Bought-

interest rates and
concerning 1957

rising

-Bought-

-Sold-

No. of

No. of

No. of

No. of

No. of

No. of

No. of

No. of

Trusts

Shares

Shares

Trusts

Trusts

Shares

Shares

Trusts

None
3,200

None

doubts

automobile sales.

Agricultural Equipment

Carriers Sold

Balance

on

3

Deere &

86,200

International Harvester—

1

heavy

38,000

3

selling took place
in Chicago Rock Island & Pacific,
Gulf Mobile & Ohio, Illinois Cen¬
Quite

1.000

Income), with

this issue."Nor

(Of

selling
to

M.I.T.'s

offset.

there

was

Norfolk

pf

1(1)

14,640

2(1)

18,500
4,600

KD
2(1)

1,000 ;
1,400 "

None

3

/

any

None '

'

the

complete
:

I

amount

same

elimination/

as

\

■.

'f

•

"

v

I

'

American Airlines
Eastern Air LinesXX

3'

7,100 '

7(3) '

.

500

None

*

!

37,700

1

(

,

None

Bank

and

Insurance

Automotive

and

Parts

Fruehauf Trailer J,

6,200
None

1,000

Timken Roller Bearing__

Motors..---.'.........l/

Apparently sparked by the

con¬

2

ability,
their

bank

recent

to

popularity
among the experts. The spotlight
turned
particularly
on
Chase
Manhattan Bank, where the rights
offering and other purchases re¬
sulted in the acquisition of over
38,000 shares by six fund man¬
agements, notably 14,000 by Af¬
filiated

Fund

Investors

and

Mutual.

12,875

First

represented
the

group

vestment

7

8(2)

Mutual

45,930
400

2

500

2(1)

7,652

2

700

KD

8,000

1

was

2.000

None

None

None

None

None

None

over

Fund; with

were

previous

None

somewhat

close.

2(1)

Sales

12,600

5

2,058'

2

Johns-Manville

Lead

General

Thew

...

U.

S.

Radio

4a,000

>>l'V/>

>Sylvania Electric-/dNone.

i

^lli/

Electric

:tPhilco

2(2)^

Rand-...dL-^2^1 ■J-tLl±y?£C^A;400\ 7y;'4(3):y
Sprague ElectricX/iIf,000/;3.(1)

Sperry

6,700

V;

Investment.//^.X_/_

Associates

.

'

C. I. T. Financial..—_x

2,900

38,275

2,050'

Bank v-None '"?■

None

5,300
1,670

Chemical

8,250

Continental Casualty__X__—12,500

KD

Fireman's Fund Insurance,

Corn

Exchange

*

None

Connecticut Gen'l Life Insurance

7

;

.

3,600

3

11,700'

1

"

300;

7,700

None

None

2,600

"First National Bank of Boston__

None

None

40,200

First National City Bank (N.Y.)

1,500

5,100

9,930'

3(2)

13,000

100

Lincoln

Life

National

Insurance

Chemical._

600

None

None

None

None

None

5,500

2,750

Travelers Insurance

2(1)

1

2

3(2)

3

None

Manufacturers Trust N. Y

None

None

3,100

2(1)

37,600

2(2)

L_

None

Commercial Credit

None

2(1)

None

Continental Assurance

2,561

2(2)

None

Family Finance

4,300

2(2)

2(1)

Food

Products

\

2

2(1)

1

4,500

Best Foods

2(1)

2

6,600

Campbell Soup

2

2,000

General Foods

1

500

2

1,100

4(1)

2(2)
2

—26,200

5(1)
1

General Mills

None

5,800

—

—

1

100

1

20,700

National Dairy—.

1

1

,

3(1)

*

6,500
-*

2(1),

29,400

.

None

1

J

"" None

Caterpillar Tractor___—_i___„_

\

"None

24,000

3(2)

Z

29,200

4

34,900

Combustion Engineering.—!
Dresser

,

*

1

Food Machinery & Chemical

None

7,000

KD

2,400

2(1)

10,000

1(1)

> 650

925

Eastman Kodak

500

Hercules Powder__

10,000

__

3(1)

6,700

_

Ingersoll Rand—ii------_

None^;

Joy Manufacturing

6,600

1(1)

2,000.

United Shoe Machinery—— '

1,000

4,460

Worthington

2,800

Babcock & Wilcox.--.-.--—...

.None

-

3

'

2

/
#

4(2)

19,900

2(1)

X

2(1)
3

1
.

12,300

Algom

9,600

—

Metals and

Uranium

Mining

*

-

2

Texas

200

■

1(1)

3\.'

_

.

None

Aluminium Ltd.

None

6,700

_______^

3/

Dreyfus Fund

we

hope

make your
money grow,

to

2

1,500

2(1)

19,600

what

we

we

intend

to

take

_

900

3

'

23,500

None

—

(prospectus) free

from your dealer

or...

Broadway, New York 4




' *

1,900

Anaconda

13,400

Brush Beryllium

12,200

Cleveland-Cliffs Iron

2,000

1

1,000

1

Refining

&

5,900

None

,

Corning Glass Works

Libbey-Owens-Ford Glass

12,6C0
1,500

-

None
-

200

1,000

General Cable

3,500

International Nickel

4(1)

2,200

Kennecott Copper

500

1(1)

Glass

4,700

None
1

and

5,6C0

5(3)

"fl
1

.

2(2)
None

5,000

Mesabi Iron

500

1

1(1)

'

3(1)

-

500

3(2)

3,000
5,250

5,600

2

DREYFUS Corporation

!/u 100

Smelting

1

Pittsburgh Consolidation Coal—

\

2

5(1)

Illustrated booklet

Aluminum Co. of America_Xi.__
American

None

500

.

Pittston
Containers

50

..

consider sensible risks

in that direction.

5,200
8,700

Coke

Island Creek Coal_x_

Koppers

.2(2)

2

1

1

and

and

14,000

2(1)

1(1)

Coal

In the

:

^

17,440

3(3)

Electrochemical.

Gidf Sulphur

,

1(1)'

4(1)

FUN1MNC

Hooker

?

1(1)

5,500

2(1)

550
__

' 2 ;s>

/

2,400

1(1)

3,300

Atlas Powder

^

;Nqne

,

/ 4,500

—

Industries_X'J/—>/XX-/

7,400

2

1,000

Chicago.Pneumatic Tool—r%None

None

Spencer Chemical

5001

3(1)

.

3(1)

Union Carbide & Carbon..

1(1)

-

/

.

Bucyrus-Erie

4,000

6

2

None

Victor Chemical

3,900

United Fruit—

1

None

;_X.

1,300.

None

200

Machinery and Industrial Equipment

1(1)

5,100

5,000:

None

4,000

2
;

.

7,900

...

-1.

I

Standard Brands.......

None

.

3

1(1)

Olin-Mathieson

Rohm & Haas

I

None

———

None

'300

Monsanto Chemical

Pennsylvania Salt..

.

1,700

"

'5,000

Lindsey Chemical._XZ—.L_^J.J

1,206

i;.

Swift———

West Indies Sugar

■1

2,300

Int'l Minerals & Chemicals

6,000

1

5,300.
3,000

2(1)

Du Pont___

XI

None

None

1

19,081

None

None

None

2(1)

16,030

,2
,

1

None

None

__

2

1,300

2(2)

National Bank of Detroit—
National City Bank of Cleveland
National Life & Accident Ins.—

500

—

2

2

1

Household Finance.7,800

Marine Midland

/

4

None

17,272
8,653

9,239

Chemical

-

12,500

4,500

Allied Chemical

Dow

;

None

1(1)

Diamond Alkali

1-

None >

Chase Manhattan Bank_~^_____

3

1,200

Cyanamid

; 3,404

6(1)

1(1)/
;

7

3(1)

12,500

._

Air Reduction

&

None

10,000:

I

None

20,600

_

Potash

> *;

None

.

Beneficial Finance_X_-____—x

"

2

American

> 3(1) ;

/

"Square

1,100

2

.

30

&.TfckX^Xi -^>500/c 1,
Electricixzr*j&bifdZ"X^None

International Tel.

2,OCO

2,500

._

American

3

was

page

W 2(1)

McGraw

1,000

1

20,700

._

Weyerhaeuser Timber..

!

/

2(1)

4,200

.

Plywood

,

^

sT*

;/

,

1

12.050

_

Gypsum

-2( 1)

r'
"r

i

2

Trane
U. S.

^

u*-,

Finance, Banking and Insurance^
>

6(3)

1

None

4.000

..

Shovel

"

2

3.667

..

._

_

*>•»

2

2(2)

...

800

6(4)

Fireman's

on

Cement

*".

3

2(2)

Gypsum

v

•

3(1)

39,900

_

Portland Cement

Star

*"

General

*'

V3,700

2

3

1,400

.

_

None

None/

-

7,900

.

5)000

1

2(2)

500

Bestwall Gypsum
Celolex
X_/_——

_XX'

V.

"

None

Armstrong Cork

Lone

:

l

None

..

_

5,400

Minneapolis-Honeywell

American Radiator..

*

3,420

_

Missouri Portland Cement
National

_

4.

j.

.12,000•. ; Westinghouse

3

2(2)

4,200

xX—

27,345

popu¬

Buying

to

Continued

^

None

—

confined

9(1)
3

None

.

_

_

(Eli) "B'

'

*

600 / Sunbeam

-.6,200

2(1)'

2(2)

^

2(2y

None

1

2(1)

perhaps
as
another
pausing Blue Chip Group—as the

year drew to a

2(1)

57,800
4,100
3,700

1

900

—

Electrical Equipment and Eiectronies

None :4 None
j

Chemicals

larity of insurance stocks abated

largely

None

2(1)

negligible.

quarter's

None"

^

5,300

;

-

2(1)

30,100
57,300

_

_

Masonite

Cleveland, and National
Detroit, the latter two

group

The

_

Corp

Robertslmw-Fulton

None

sparked by rights offerings.

_

National

None

this

Corp.

Georgia-Pacific

4,500

First National of Boston; National

in

Carrier

6,500

None

of

_J

_

.

1

12,000
tione

of

_

_

__

1

None

Bank

__

_

300

Wellington coming along with a
15,000 share addition. Other bank
issues
finding
favor
included
Chemical Corn, Marine Midland,
City

_

_

1

consisting of the In¬
Company of America

and American

5,860

1

18,000
of
which
new acquisition by

a

15,600

2(1)

by

Bank of
New
York
picked up in an amount of

shares;

Pepsi-Cola

Lily

1,500 ;

2XX

Building Construction and Equipment

-

National

City

40,000

None

None'

.Warner-Lambert

,

>17,000

6(1)
...

Canada Dry

.1,600

16,700

"IX"/ /-'

-

Coca-Cola

None

None

■

maintained

stocks

return

700

None

.'

/

i rv

;*

Thompson Products

Beverages

tinuing rise in interest rates and
their impact on operating profit¬

•

a/.'-" 42,100

KD

Stocks

•

6(1)

4(3)

■*v;

Z_ 1 'f.*7 None
Ford Motor——X^__ZXxX,
11,200
Chrysler Corp.
X
—_X_
17,000

General

None

__

——XX

*•'

29,900

-=/2
S ':
1(1)* V

3(1

Borg-Warner __X 1..__ 1

Bought

•

5

Airways-x >5,Q00 < KD
Lines—XX—-X._—:^ NbWe -\ None

None

FAVORED GROUPS

Kl)

1(1)

'

,

v ■

World

3(1)

j;.

i- n

X-XXXxiXZ3J);l6d. //

■

1,000

(G. D.)
Sterling Drug

'

;

1

6,000

Searle

5,000

1__XIX/'Z,2,400X] 5(1)

United Air

'

3,500
11,518

3 —

1

1,500/

Norwich Pharmacal——

100'

7(3)

Aviation.^..'^49,233^

Pan American

,

27,700

1

3.200

;±

„

Parke, Davis___
Pfizer (Chas.)

«

74,100
1,300

'

10,000

2(1)

/>

-

._

Merck_

50,900

2(2)

7,600 *7

•

37,100

1

l

11,720

Aircraft.—... ....L.

Mead Johnson

3

1

1

2,400

KD

None

None
708

Aircraft...._;

;__

McKesson & Robbins

6(1)

1
2

2,000

45,300

3\

a

j

_

.

75,600

*

2

Bristol-Myers

7,000

2(1)

Airlines

2(1)

/ I

>f

-

900

880

x_.

.f

.

11,900

2

9(1)

_

American

United

3(1)

Manufacturing

t

United

by

Accumulative Fund.;' -'-

5(4)

(Glenn L.)

North

7,600

2(2)

—

Aircraft

McDonnell

shares, as a new; acquisition, by,/
Selected American Shares, and; a *
of

Martin

None

None

and Western
acquisition of

Lockheed

2(2)

31,000

101,200

Boeing Airplane
Curtiss-Wright
Douglas Aircraft

2

6,800 shares and Broad Street's
purchase of 1,000 shares. Canadian
Pacific was completely whlpsawCd
between
a
purchase
of
10,000

sale

11,600

Bendix Aviation

2,000

6(1)

sellers

no

Co

Aircraft

Northern Pacific, Seaboard
Air Line, and particularly South¬
ern
Pacific which apparently at¬
tracted no fund buyers whatever.
This
pessimism
was
somewhat
offset by purchases of Baltimore
and Ohio (6,000 shares by Selected
American and 5,000 by National

DrugTroducts

Allis-Chalmers

tral,

Securities

Thursday, February 7, 1957

.

than one management group occurred.
Issues which more managements sold than
bought are in italics. Numerals in parentheses indicate number of managements making entirely new purchases or completely
eliminating the stock from their portfolios. (Purchases shown exclude shares received through stock splits or stock dividends.
Changes through mergers also disregarded.)

Cautious
renewed

.

Changes in Common Stock Holdings of 56 investment Management Groups

Funds
tion

.

Anchor

Hocking Glass._

None
_

Owens-Illinois Glass

Pittsburgh Plate Glass...
American

Can

Owens-Corning Fiberglass-.

_

__

None

16,600

1(1)

'

2

3,150

5(3)

1

562

•3(1)-

1

10,000

1*

7,500

2(1)

6,000

1;

Rome Cable

4,370

None

None

63.700

1

Phelps Dodge

475

3(2)

2(1)

New Jersey Zinc.

3,800

1

2

15,200

6

None

1,000
None

5,400

3

11,300

2,525

Tennessee Corp.

Cerro de Pasco

None
7.137

Reynolds Metals

X—l—

.

3(3)

37,500

I

Kaiser Aluminum
■

1(1)
None

5(3)

12,675

4(1)

Volume

Number

185

5610

.

.

29

(693)

The Commercial and Financial Chronicle

.

*\

-Sold-

—Bought—

Sold

—Bought—

No. of

No. of

No. of

No. of

No. of

No. of

No. of

No. of

Trusts

Shares

Shares

Trusts

Trusts

Shares

Shares

Trusts

Natural

Radio, Television and

Gas

5(3)
6

10,400

Colorado Interstate

5(4)

96,100

Lone Star Gas

32.700

1

3(2)

9,000

Mississippi River Fuel

30.400

KD

2,000

Northern Natural Gas

5.500

3(1)-

9,600

Panhandle Eastern Pipe Line—

7.600

2

Republic Natural Gas
Southern Natural Gas
Southern Union Gas

None

None

None

None*-

14,000

49,334
3,076

2^*^"

-

-:

Ij

v

i
*

—

Gas...^-Si.u^..i^——>
- " 4,700v ;-United
.25,500- \El Paso Natural Gas.———

;

*7

-

.-I

-

£■}*.$.>

'2,640

•

-5(1);:
*

.'2

10,700
24,766

,2
•

:..3(i):
7(2)

Atlantic Refining

2

.

.

:•

--—-3-:

3,600

;

.—-—

Oil

Pure

2,500

Richfield Oil

2

5,100

3

18,000

25,298

4(1)
'•

5

-

250

4

'

-4,000

:

Oil

Standard

-

1(1)

——

1

2(1)

Mead

7.537

Rayonier

19,500

4(1)
4(2)

St.

38.000

3(1)

2,000
5,550

2(1)

Lawrence

2(1)

American

.

Florida

2,700

r

2

&

Water

,

Tel

——

-

2,300

,J 6,000

'

2(1);

/

3,500

States

,

•

/

Oklahoma

57,000
19,720

None

None

United Merchants & Mfrs

54,842

4(2)

Gillette

500

Glidden

1

1,500

Harbinson-Walker

100

5,700

Beckman Instruments

1.000

1

2(1)

Distributor

International Shoe
Newmont Mining

13

2

1,500

Newport News Shipbuilding.

2

4.100

Outboard Marine

1,

200

17.000

300

United-Carr Fastener

100

Colgate-Palmolive

None

1(1)

2

1

,

,

None

12,500
200

1

Diamond Match
Halliburton

Oil

1

1,000

ABERDEEN

1

2(1)

2,200

2(1)

7,200

3

2,800

FUND

1(1)
7(4)

3

Well Cementing

Minnesota Mining & Mfg

"k

None

6,600

1
1

DESIGNED
FOR

None

None

LONG-TERM

1(1)

None

None

Light

-

None

None
None

4,700

16,900

.

1..

Electric—

7.000




dealer

today to:

—DAVID L. BABSON—

Llent dealers «

MANAGEMENT CORPORATION
.

CFC-54

1

120 Broadway, New York 5,

Power

.

24,600
30,000

2(1)

22J500

3(1)

13,700

3(2)

13 £00

2(1)

Aberdeen

Fund

.

.

;

.

A

in

common st

_

Name
Street

City

N. Y.

Prospectus

2(1)

82,200

Please send

3(3)

.

2,400

your

1

Central & South West.

None

mail coupon

Dept.

400

2,000

3,500

or

1

Light..

Utah Power &

Consumers

Prospectus from

—

Utilities.

Penn

None

None
Texas

None

None

Southern Co.

GROWTH

POSSIBILITIES

None

None

Diego Gas & Electric

New York 6, N. Y*

Telephone COrtlandt 7-8600

1

12,700

63,600

None

Broadway

115

1

100

4,000

._r

None

CO.

KD

None

Transamerica

1

3,000

.__

Singer Mfg.__

2

1

3(1)

&

1

2,000

2,765

1

SAMUEL

1(1)

500

Refractories-

4(2)

None

E.

2

^

None

None

None

4,000

3.260

1

None

1,500

Service of Indiana—.

1,700

None

Chicle—

1

None

None

'/ Public

1

1

American

None

None

West

1

American Chain & Cable

1,090

None

None

4.200

2

1(1)
None

request

Members N. Y. Stock Exchange

2

1

on

2(2)

Miscellaneous

1,500

2

,

,

RALPH

2

payable

and descriptive

literature

2(1)

(M.)

under¬

or

commission

Prospectus

2(1)

2(1)

None

5,500

None

P.)

Lowenstein

26,000

value

asset

load

1

Industrial Rayon

Gas__

2

None

3,000

net

sales

None

None

900

Public Service Electric &

4,700

12,100

Stevens (J.

None

None

Peoples Gas Light & Coke—

-

1

4,000

15,000

Cluett, Peabody
Saco Lowell Shops.

None

2.000

(Minn.)

8,900

-

19,250

None

Gas

12,300

2

no

*.

anyone.

1(1)

None

19,400

,

Gas & Electric

19,300

*

.

.

None

1(1)

$1789

—

2

6,700

2

the

in

1(1)

7,000

None

200

Power

3

4

KD

—

None

None

San

3

Sold at the
■

to

2

None

—

Puget Sound Power &

6,600

*

2

5,134

J

2(1)

Beaunit Mills

None

Light

10,000

2
>

American Viscose—

None

—

Ohio Edison

9,300

2(1)

7,300

2,300

KD

None

Niagara Mohawk Power
-Northern
'

3(2)

1

None

12.000

——

N. Y. State Electric &

1,000

6,000

£

4(4)

writing

2(1)

Middle South Utilities—

10,800

2

3(1)

possibilities
Age"

5(1)

Textile Machinery

Textiles and

2

4.700

Montana Power

4,400

K2y

National Steel

KD

11,900
3,500

&:Tube

Kl)

2.900

Works

General Telephone

24,300
1,500

1

growth
"Energy

5,000

—:

,

Organized to invest for capital

1

54,500

Republic Steel

None

2.500

Kansas Power &

4

1(1)

800

U. S. Steel

7,000

INC.

6

11,000

Idaho Power.—

-*

ENERGY FUND

2

12.800

Power

1,000

-..

6(1)

1

Laughlin Steel—.1—

Youngstown Sheet

1(1)

None

Louisiana Gas

6,000

2

Jones &

30,400

1

Utilities

1

;

4(3)

5,000

Inland Steel

21,000

4(1)

1.000

through

2

21,000
9,700

Steel

6(1)

1

None

Energy

10,000

Allegheny Ludlum Steel._:

4(2)

1

3.500

.-

2(1)

2

3,100

16,700

600

51.100

5

Rubber-1———.

★

★

7 None

Steel

r

4(3)

•

S.

4(2)

Delaware Power & Light

15.100

2

2(1)

U.

★

6(2)

15,000
27,800

9,158

★

1

230

Goodrich

900

2,800

Columbia Gas System

2.400

>

Goodyear

None

1,200

Buckeye Pipe Line
Central Illinois Public Service-

27,300

~

2

14,342

3(1)

Gas & Electric

Arkansas &

5,400

6(2)

None

Firestone

4

1.500

★

★ '

★

KD

2,500

2(1)

Corp

American Tel.

"J '<

:

2

57,140

Sears, Roebuck

2

—

Bag-Camp

American

18,300
321,000

7(7)

1,000
3,500

Allied Stores--------

2

—

KD
2(2)

3,300

1.

Safeway Stores

Bethlehem Steel

Regis Paper—

Union

10.150

1

Telephones Klngsley 5-3311

.

St.

1,200

10

None

;

1.240

1

—

■

1(1)

46,200
6,600

*

_—

Penney (J. C.)

Armco

—

Public
2

500

12,800

None

Paper—
Warren (S. D.)

100

1

500

10,000

•

11,980

Paper—

Scott

None

None

7,000

None

3.000

Corp

.- ■

None

' 30,000

National Tea

6(1)

4

47,700

Marathon Corp.—

distributor

South Broad St., Philadelphia 9

123

1

*5,000

May Department Stores
Montgomery Ward

6(2)

Kimberly-Clark

21.500

P

None

None

5,500

*,

8(1)

International Paper—

5.500

4(1)
5(1)

None

Department Stores

i

Zellerbach
Northern

Great

500
2.658

t

•

,

First National Stores—^

1.500

Crown

FAHNESTOCK & CO.

,.

G

11,000
39,100

—

Gen. American Transportation

3

Champion Paper & Fiber

4

Line

Pacific

3,100

16,000

4(1)

Southern

1,000

(Ohio)

26,000

2,900

14,000

Federated

■

Paper and Paper Products

1(1)

Seaboard Air

23.000

—

Exploration—

Shamrock Oil & Gas

6200

1

24.800

3,000
■

2

KD

Louisiana Land &

None

on Request ^
"v-.vrhn/t. It'

*

Rubber and Tires

None

4.200

Oil_

Prospectus
j

10.000

Pacific

i

Union Oil & Gas of La

3,100

;'

3(2)

i

Texas Co.

:.

Northern

2(1)

1.040

Texas Pacific Coal &

; 1,000:
16,000:

Nashville

6,000

None

2

5.000

23.400

—^

Railroad Equipment

1

2(1)

9.213

Oil——

_

1,000

1

28,250

23,800

None

_____

Chicago9 Rock Island & Pacific
Gulf Mobile & Ohio-_-___-—
Louisville &

1

1

3

1(1)
3

Union Pacific

12,800f

—___«

2

3

None
—

5(1)
'

Railway---^.-.

KD

Superior Oil___

-

•

Southern

Illinois Central

I 1,000
None

•;

•

2

1.125

—

(N. J.)

Sunray Mid-Continent

11.550

7(1)

Oil

Standard

300

St. Louls-3an Francisco.

1,000
\ 500

-i,/

2

1

27,800

(Ind.)

-Standard Oil

143,560

,/

1 i

,

None

_

Retail Trade

1

7,354

Socony Mobil Oil
Standard Oil of California

& Western.—

1,100
r

4,900

3(2)

400

.

Skelly Oil—

24,175

500'

1

1

6,000

20.500

-

.

-

"

V

2(1)

27,500

*——

7

4(2)

7,000

-

6,710

31,000

3(1)
4

Norfoik

None

500

Sinclair Oil—i

None

■"//

—

Shell

300

:

None i"

3

Oil

11,750

5

3,700

.

None

25,000

—

Royal Dutch Petroleum (fl 20) —
Seaboard Oil

300

3

8,300

City Southern—-

.

'

2

j

Royal Dutch Petroleum (fl 50)

500

Kansas

1

-

4,800

—

200

3
KD

i

17,500

-

/

.'7,800

None

18.400

Phillips Petroleum_—-—------

7,600

6,700

1

;

■

None

Mission Corp.____

_i

10,000
.

.

'

MD

None

/

Ohio Oil

2,000
None:

_

:

•=:

4

•

None

./
——

12,500

•-

:

/

2.900

^

Gulf Oil-—

Oil—

Chesapeake & Ohio.-,.--^-^^/—

'None

1-'-'

3

McGee

Canadian Pacific.j_

14,500

8,000

,

Coast Line.

.

•''

1(1)-'

1,000

45,250

3

;

a-

25.000

—

6(2)

2

•

;

12,200

International Petroleum.

10,000

3(1) ;
2 '

,

+
.

:

3.100

: Kerr

Baltimore & Ohio^

KD
'""

1

Cities Service_l—__.—___ ^

7,000/

> '

,l'

r-.*. 2x

——

___

11,000

id:)-'

1

a.-K

3(1)
2

2(1)/

t

2(1)

4;154

:v

Continental Oil
Honolulu Oil

.

'

2

.1

21,800
49,000
.'3(2)
•2(1)'" 18,800'

-3f

-

.

A Mutual Investment Fund

Atlantic

;

5,180

19,270

Atchison, Topeka & Sante Fe__

INC.

9,300

.

1

600

—

Paramount Pictures

-1,100

'

.

'

2

v

9,900'

•
-

39.000 r

Amerada Petroleum^

'

7,200

1,500

2

2.575

—

British Petroleum

.

FUND

6,743
10,000
None

2"-

r
'

onMr.
5,800
3,000-

.4(2).
.

National Cash Register—

>

>

V

'

Broadcasting 'A' & 'B'

Motorola

Railroads

-

t

Corp..——

*'

'

:.

.

Columbia

PHILADELPHIA

20,000

Storer Broadcasting

.

'

/' IBM _7^_—/————7^—7

7f 350

.

Equipment

75,000, /' Pitney-Bowes

I**" 7
'f;

J Office

-

Broadcasting-Paramount

20,300

None v.

23,500

.

Amer.

3(3)-

'None ,'

-

'

J-

^ 20,000.: •••; Burroughs

7,2(2)3

•'

?

v

—

;

2-

'

4.700
-----

3,600

1

3

6(1)

35,752

2(1)

1

3(1) <

80,200

3

None

None

Gas

5(1)

Motion Pictures

State.

30

The Commercial and Financial Chronicle

(694)

Continued from page

five

28

funds

share

partly offset by

was

Funds Increasingly
Fund, National Life and Accident, sold,
aad

in

12,000-share total.
good buying of
Bristol-Myers, Norwich Pharmacal, Pfizer, and Warner-Lambert.
There

so strongly evidenced in
preceding period, continued if

lessened

degree.

acquired,

among

somewhat

in

Pittston

was

issues attracted

of its 5,250

sellers.

In

an

but

a

during

unissued

stock

from

increased

shares

25,000

Crown

as

a

did Kimberly Clark/ Mar¬

as

Mead, and
Rayonier
(a
company
including
non - paper
Whip-sawing

products).

occurred

in Champion Paper and Fiber, of
which State Street bought 26,000

shares

commitment,
while 47,700 were being sold by
Incorporated
Investors.
Sellers

bought
acquired by Well¬

as

a

new

strongly predominated in the split

Bag-Camp and in St. Law¬
Corporation
(a
Canadian
company) stocks.

Strong Buying of Drugs
Buying

of

drug

issues

Mild

ones

the former, six funds bought more

50,000

shares;

being

Fund

to

the

made

the

tune

r-

largest

of

Natural

on

making

72,000

ing

and

effected

Columbia

Storer

by Leh¬
Ameri¬

sold

by

representing

the

previous

popularity.
Bethlehem,
Armco, U. S. Steel, and Youngsother

hand,
taking took

On

considerable
place

the issues;

all

favorites.

the

were

the

profit-

practically

in

heavily sold, four funds mak¬
ing complete eliminations of this
issue,
including
a
40,000-share
liquidation by Investors Mutual.

Machinery and Industrial
Equipments Bought

The

star

performers

Natural

ern

29,600

Natural

shares; only Lehman Corporation

in

in

Gas,

this

South¬

this

Republic

Chemical

Gas; although buying of

close-out

and

96,100 shares of Lone Star Gas by

Putnam
cox

Food

of

&

by

a

10,000 shares by the

Fund.

met

Machinery

overbalanced

was

Babcock

&

their

bought,

highly

utilities

but

at

selling

Consumers

bought. Liquidated were Herculei
Powder, Hooker, and Texas GuL

in

occurred

Power, Consolidated Edison, Cen¬
tral & South West, and General
Public Utilities. American Tel. &

Electric

some

Central

buying by 10 funds,
largely ensuing from its rights of¬
fering, another case where rightssubscription accounts for part of
issue's

an

activity,;

buying

the

liberally
time

same

took

DIVERGENT

in

Arkansas

POLICIES

Here

Equipment and

Electric

16,700-share

Ecpjipment

Sales

in

hit

54,000 shares.

was

lAljis Chalmers,
fcty five fund man¬
agements to the tune of 101,200
shares; the United Funds group
alone closing out 58,000 shares.
was

sold

and

Aircraft

Manufacturing

Here Boeing

and Curtiss-Wright
particularly good buy¬
but
bearishness
pervaded

attracted

ing,

American".

North
which

Aviation,

funds sold

seven

of

49,000
bought. Some
L. Martin was
over

shares, while non
buying of Glenn
more than offset by Bullock's sale
of 11,720 shares.

American

bought

was

by

extent

of

55,600 shares, while Fidelity Fund
a

commitment of 20,000

new

shares, and only Selected Ameri¬
made

can

complete elimination

a

also

United Airlines

by

featured

a
purchase of
likewise
by
In¬

shares,
Mutual.

bought.

The

latter

74,100

fund

shares

"of

American

Airlines,
in
which
selling otherwise prevailed. East¬
Airlines

ern

of

met

with

an

excess

and

in

National

Wellington
Swift

and

joyed

an

one

of the

ber

of

six

managements;

buyers

in

&

Chemical

largest

this

num¬

by

group,

although

In-

Managed by

24 Federal Street

the face
for

to—backed
zation with

by

nation-wide organi¬

a

I ake
new

managed

buying

by the

sponsor

of

to

although

investors

minums

demand for Aluminium
Ltd. and Alcoa contrasted
sharply
with, widespread selling of Kaisei

Aluminum

by

(including

a

share

dividend reinvestment

by

26,000-

National

A

new

commitment

of

19,00(

shares in Burroughs Corp. by the
Bullock Group was more than off¬
set
when
the
Wellington
Fun
sold

18,000 shares and the Unite
disposed

group

Purchases

of

21,00

IBM

of

were

by si

all

but

offse

the part of Affiliate

on

Fund.

Oils
most

frequent buyin
Sunray Mid

The

shift

to

Wester

the fact that Lehman Corp. newl

Dealer

or

With Vaughan & Co.
(Special to The Financial Chronicle)

the above*

Company, Murchison Bldg.

New England
Fund

$

include—monthly
group

Diversified Investment Fund, Inc.

your

ORGANIZED

1931

life insurance,

plans, periodic

Manhattan Bond Fund, Inc.

while

to

write

or

call

.

.

•

Diversified Growth Stock Fund, Inc.

vw>/

"^A

vnoy

A

FIF MANAGEMENT CORPORATION
Y Principal Business Office^)




managements

complete

Russ Building

Fundamental Investors, Inc.

withdrawal programs.

•

five

elimination

of America's

plans, plans with

optional self-completion

Broadway

case

Smelting; New Jer¬
Zinc; and Tennessee Corpora¬
tion attracted purchasers with nc
offsetting sales. Among the alu¬

earnings

contractual investment

950

Pur¬

the

sey

and

managerial opportunities

mi

selling.

American

WILMINGTON, Del. — Williar
L. Callum, Jr., is with Vaugha

rapidly growing mutual funds.

>Iore

^ou II find it's worth

widespread
there was alsc

chases exceeded sales in
of

coppers

attract

training offered

one

personal

to

Investment

softening price

a

concentrated

some

SAN FRANCISCO

1924

organization.

>lore

Our services

your

of

advantage of the continuous

sales ideas and

most

Prospectuses from

en¬

Hemisphere oils is exemplified b

wide-open opportunities

head your own sales

to

ESTABLISHED

Sugar

buying.

the1 commodity,

Continent.

HOWARD

BOSTON

BOSTON

of

excess

occurred in Gulf and

INCORPORATED

can

of which
20,700
shares

Indies

Metals

Fund

STOCK FUND

&

Dairy,

sold
West

Office Equipments
Potash

EATON & HOWARD

EATON

this

Investors); more funds also sold
than bought Reynolds Metals.

selling.

attracted

in

alone,

26,200 shares by Investors Mutual

trend

Investors Mutual to the

made

sufferer

United

Fruit, where
namely Broac
Street
and
iM.I.T.,
disposed
oi
28,900 shares.
There
was
large
liquidation in Best Foods, namely

In

Airlines
Pan

principal
was,

funds

S}"'

■

American

Louisiana

The
group
two

Chemicals

-

Food Products

Here the

You

32,00(

which

in

higher-rate commissions
Plan business.

the

Funda¬

shares; and also in Philco anc
Sprague. Sperry Rand was rathei
heavily sold to the extent of ovei

BALANCED FUND

on

nevi

pur¬

was** the favorite
International Harvester
selling almost offset': buying. Very

EATON & HOWARD

live and do business where
you want

where

mental Investors alone sold

Deere

by sales

SIONS

a

by

exceeded

RCA,

managements

CONTINUING COMMIS¬

was

In

shares.

and

there

commitment

Tri-Group.

W

with

three

"numbei

was good
buying in Gen¬
Electric, Sylvania ElectFic
Westinghouse; also, in Mc-

chases

Agricultural

Service,

place

Public

Telephone, Middle South Utilities,
and
San Diego Gas
& Electric;
and

by

the

There
eral

Graw

The

Delaware Power & Light, General

\rt^v

sold

Electronics

and

GROUPS ENCOUNTERING

45,200

defensive

were

scattered selling.

Illinois

shares

Sulphur.

Tel. attracted

vestors

impact
of
the
improving
yields on competing investments
led to

its

the

of

was

the

heaviest

but

exceeded

(of 5,000 shares).

Utilities Bought on Balance
With

sold

buyers,

others

Wil¬

heavy liquidation.

qualities

six

were

number

were

balance,
especially
Erie,, Caterpillar, Com¬
bustion Engineering, and Dresser
Industries,/
Acquisition
by
six
of

America

Substantial

'

group

on

funds

of

19,000 shares. In Dow

by Investors Mutual.

and National Steel

was

bought

mammoth

Co.

than

hard

retained

quarter's
town

there

buyers,
including
a
220,000-share purchase

vestment

issue.

eliminations.

Steels

first-time

demand.

was

three

10,000

more

Broadcast¬

aroused

Pictures

funds,

of

Selected

and

Paramount

four

Sales

were

Corp.
Shares.

can

commitment

new

a

shares.

Thursday, February 7, 1957

;

.

Gas, in which a large secondary
offering attracted seven funds as

Bucyrus

group were Lone Star Gas,

Affili¬

by

Bullishness

Gas

being Parke Davis and Merck. Of

ated

tors

of

Stocks

was

lively, the two most popular

purchase

heavily, with Fundamental Inves¬

Union

rence

than

purchased

was

Zeller-

athon,

shares of Koppers common
were

ABC-Paramouht

Steels Favored

bought

commitment.

ing,

quirements.
In the field of coal
chemicals,
17,000 of the
19,600

by funds
ington.

St.

bach likewise attracted good buy¬

coal

the

of

on

li¬

Stocks in Demand

complete

new

serving to finance its
working
capital
re¬

company,

Radio-TV

alone

prolific buyer of coal
the
September
quarter, added 83,000 shares of
North American Coal Corporation
to
its
previously owned 17,000
shares in that company. This was
a direct acquisition of authorized
Investors,

case

the

buyers than

particularly true

sold

Mutual

was

ment.

man

more

was

Fuel

Investors

as

Regis Paper,
where Incorporated Investors

unusual deal Incorporated

Stocks

This

in

shares.

disposal of
Fund. Miss¬

a

Affiliated

River

shares each

Apparently overcoming preva¬
lent over-production fears, paper

60,000-

a

quidated its 30,400-share commit¬

a

also

was

Papers Picked Up

others, by Fidelity Fund which
acquired 22,500 shares. The only
sale was a complete elimination
by the Bullock Fund

Merck attracted nine funds

and M.I.T. for

pronounced interest in coal

stocks,
the

6,000-share

its

out

by

issippi
balance

buyers, led by Investors Mutual
the amount of
13,200 shares

as

Interesting Coal Issues
The

closing

block.

General Life.

Connecticut

32,700

Cautious

(including

commitment by M.I.T.)

new

.

Denver 3, Colorado

•

Coffin & Burr
Prospectuses available
these

mutual

local

Telephone AMherst 6-2671

National Distributor

investment

funds

on

through

firms,

or:

Incorporated

HUGH W. LONG AND COMPANY

Founded 1893

incorporated

Elizabeth

3,

New

BOSTON

Jersey

NEW

YORK

HARTFORD
R-6

PORTLAND

BANGOR

Volume

5610

Number

185

.

.

The Commercial and Financial Chronicle

.

of Inter¬
while Loomis
first commitment

35,000. shares

acquired

national Petroleum,

Sayles

made

a

of 10,000 shares
shares.

Lehman

000-share

leum.

and de Vegh 4,000
sold half its 50,Petro¬

British

in

stake

Herbert Ira. V.-P. of Investors
tive

Vice-President

of

Investors

Execu¬

as

Securities Salesman's Corner

of

Company, Inc.,

Management

Elizabeth, N. J., was announced by George E. Roosevelt, Chairman
of the

Beard, and W. Emlen Roosevelt, President.

Recessionary Markets Present
Opportunity

Texas Pa¬
cific Coal & Oil, and the Standard
Oils
of California,
Indiana, and
Mobil,

New

Texas,

considerable selling

was

If

other hand,

On the

Jersey.

there

Exploration.

.

.

.

constructive
The

-group; Firestone
and
attracted more buying
than selling; and conversely, liqui¬
dation predominated in Goodrich
this

U.

trend
Thos. J.

Herbert

dent and

Elliott

Trantutn

P.

Adron

time, Adron P. Trantum

same

P. Brown

the

not lending
themselves to ready classification
stocks

the

growing group under today's
industrial diversification trends—
—a

Minnesota Mining

ing

sold

was

& Manufactur¬

balance, and Col¬

on

gate-Palmolive was
exposed to
persistently heavy selling in the
amount of 63,600 shares by seven
managements, • Investors
Mutual
eliminating its 50,000-share block.

of

Secretary, Elliott P. Brown, Vice-President, and Florine

Mr.

Herbert

mental

InvestoT^ Inc., Diversified Investment Fund, Inc. and two

other mutual fiiritis.

Prior to

1951, Mr. Herbert

Vice-Presi¬

was a

of Chicago.

Company
Mr.

Trantuni

Presidents

Mr.

and

Brown

of

th£. company. Mr. Trantum joined the organization
jpeen an officer for the past 22 years. Mr. Brown
associate^ \\dth investment counsel firms for 15 years before

withctfr£ company in 1946.
Secretary of the

underwriters

organization

their

joined

1

.

3V2 years, had previously
Ingen & Co.,

the past

been with B. J. Van

affect

of

member

allowance for oil-pro- facilities;
properties is not reduced.
*"
'
_

Club of New

New

(Secretary,

York

future,

of

New York

University and The

"Guaranty Surydy."

ATOMIC SCIENCE
i

MUTUAL

FUND, INC.
FREE PROSPECTUS

STREET, N W.. WASHINGTON 7,

Dept/C

Tel.

O. C.

FEderal 3-1000

of the limitation to 50%

cause

^vhichever is less

"Survey"'T^ports,

mates, of

erable
as

our

total

petroleum

300

net

of
depletion.

before

income

recov-

ing legislative background, oil has
taken its place among the great

high

epics of American enterprise and

esti¬

and

reserve

range

billion;i^rels.

as

"

—

declining.

few

BANK FUND

crude

threh"billion barrels of

must
•

•

•

FOUNDATION FUND

in

liquids
be discovered and developed
United

the

resource

so

vital

INSURANCE FUND

are

hazardous

'

INCOME FUND,

INC.

business.

$1,000,000

field

YORK 6, N. Y.

the. above or local dealer.




The

with *

an

average

of

and notes that eight
dry,

Conn.

HAVEN.

—

M. Bassett, Fred E. Ross,
F.

Salerno,
W.

Chas.

Church
New

and

from

only one' well in 43 finds a
containing enough oil to be

profitable,
967

finds

barrels
often

or

found

cessible

that

only one in
a field
of fifty million
more.
Moreover, oil is
and

in

to

Scranton

Street,

areas

where

you

is

do

or

If your

w

was

years

price

had

I

30%

sold

i

be-

them

early months of 1949.
investor

retired

a

quite

owned

He

and

he

sizable portfolio of

a

stocks which he had acquired primarily with income as
his

objective.

One day

he

to call it

tell

might at least

day, and very much
to my surprise he told
me that
he had just received the annual
report of one of the companies
in which I had interested him and
he thought he would like to make
a

additional

and

stock

in

the

than

cessionary markets. This is cer¬
tainly a truism that has been
time and time again.

proven

30%

less

Name

Frye, Ostrander

To NASD Committees
CHICAGO, 111.—Appointment of
two Chicago investment securities

major committee posts of
Association of Se-

to

men

his

investment

about

at

been here a l°n8 '™e a d it
continue to be here and the b^t
t'me t0 bu7 a share ol it:iswhen
the price is more attractive. Th
best mvestment purchases are always made durm& Penods of re"

I decided to phone him

if

see

By a1'^ea?lst^.e0n"de."traVln^

,

This was, I believe, back

the

National

purchase.
Instead
of
for the decline in
price of each one of the five
stocks I had sold him, he looked

original

blaming

at

the

This

it.

side

otner

was

He

was

me

the

he had

convinced

which

SPITE

ledger.

to

way

the value

see
now

better, the income 30%

and

more,

that

the

of

proper

knew

even

read
him

a report
that DE-

FLUCTUATIONS

invested in

UP-

solid company with

a

the beginning of

marked

Milton

Giacchino
staff

the

&

of

Co.,

209

members of
Exchange.

the

Stock

York

ward

of

surge

the up¬

stock

common

prices which has continued

until

G. P. Frisou
SAN

George
fices

at

engage

Opens

FRANCISCO.

Calif.—

P. Frisou has opened of¬
114

in

a

Sansome

Street

to

securities business.

Eastern

Sees.

*

(Special to The Financial Chronicle )

JACKSONVILLE, N. C.—Chester T.

Nickell is with Eastern Se-

Corporation.

inac¬

curities

large

sums

Boulevard.

331

Marine

P.

Frye

curities Dealers
L.

Frank

Lee

Reissner,

Bond & Share Corp.,
the

Board

of

H.

Ostrander

announced by

was

Indianapolis
Chairman of

Governors.

Frye, President and
a director of Central Republic Co.,
was named
Chairman of the Fi¬
Newton

P.

and

Committee

nance

member

a

of the Executive Committee.

future is healthy, they
are
not going
to be very much
concerned
if
they
have
some

mittee.

customers

But

losses.

paper

if

you

vite

information, you will in¬
lack

a

reluctance
your

them.

of

on

confidence

and

a

their part to follow

suggestions when you make
If a situation is develping

where a change should me made.
place it before your customer.

I

Lee H. Ostrander,

Blair

liam
a

&

Co.,

partner, Wil¬
appointed

was

member of the Executive Com¬

Tannen Co.

fail to

keep them advised pertaining to
their holdings, if you neglect to
follow their lists and give them
current

With

Newton

want the
facts. If they are reassured a sit¬
uation they are holding for in¬
vestment is sound and
that the
Your

(2)

long-range

and

remote

business

even several years ago.
business has slowed down
a
bit get busy and see some new
faces.
Make
some
calls
again

year

^rank A. Sasso the present.

added

been

have

article

places the cost range of a single
well from $20,000 to as much as

that

LTD.

Prospectuses may be obtained

year

NEW

out of nine discovery wells are

Distributed by

19 RECTOR STREET, NEW

each

to

about $90,000,

HARE'S

States

to

be- met," according
to the Guaranty'publication.
The finding of bil is a costly and

years

(Special to The Financial Chronicle)

gas

replace current con¬
sumption, and more if the in¬
creasing requirements of future
merely

GROWTH FUND

and natural

oil

prospective, clients

The

today was the result of the work
you accomplished last month, last

cli¬
associ¬

you

tffe oil supply must to prosperity and national security substantial assets and
earning
always depend ubon economic in- by changes that cannot be justi- P0™.
hniltrhf Qnr.
centives to encourage the continu- fied even on theoretical grounds."
Incidentally, he bought and averaged two more of the stocks I
of t exploration
ous
and
process
had originally sold him, and he
discovery, the "Survey" points out.
C. W. Scranton Adds
has them to this day. June, 1949,
"About

•

The best time to see

new,

Adequacy of

Jfn&tilittionul

friends
recessionary

WARD OR DOWNWARD, he had

thffutureof a^

Economic Incentive's

-

the

the

me

quently since ifs* authorization by Therefore, the present rate of de¬
Congress in 1'9%6, will probably pletion represents less than the
be
attacked aghin this year as- capital value that
is being depleted by production."
'special interest" legislation.
Thus, the "Survey" concludes,
Proved
reserves
of
approxi¬
"rational analysis of the economics
mately 30 billion barrels should,
of depletion confirms the verdict
at the current"ir^te of production,
be adequate for about 12 years, of experience. Against the exist¬
the

Development Securities Co., Inc.

1033 THIRTIETH

incomd,

the net

DEVELOPMENT

Atomic

•;

by
Guaranty
Company of New York, prethat
the1 Aoil-depletion
al-

—which has been questioned fre¬

ATOMIC

GET THE FACTS AHO

b

'

~

the oppor_

new

during periods when markets are

than you may think.

some

declined about

him.

and

publications asserts.

re-

him

markctsmore

common

Figures are cited to show that
Trust
"effective depletion over the life
diets
of a producing property is a good
lowance for tax'purposes—27%%
deal less than the depletion allowof the gross income, or 50%
of ance of 27.5% of gross income be-

in

through

any profits remaining
taxes, • the
producer must

published

view,

invest

economic

and

business

The

had

ing oil welfare numbered," the

even

the aid of imports from the
™

Toppers.

that

provide funds for new exploration
and discovery if he is to remain
~:i
in business, for oil is a wasting
asset and the days of every exist-

without
Middle
1955-56), Investment Association East and other-iources, according
the
February
issue
of the
of New York, Money Marketeers to
foreseeable

of

Forum

your

#

ago I had
client who owned five securities

in

"From
after

things

that your own

tunity for making
during periods of

your

rooms

to

•

Profits Plowed Back

He is a by Congress,'dpJhestic oil reserves
Bond appear sufficient to satisfy this
country's
reqqirements for the
York, The Municipal
Municipal

The

■

'

...

the

Don>t overlook

(3)

morale.

recall

low

transportation

depletion

1953.

1939 to

Inc., from

I

spent for

offer

assurance

suits for

thinking and
If you have
through these periods of hes¬

board

profits.

must be

of

a

Attention is called to the extent to

of the

the

conditions

one

'yo^wln also'discoTertharonly am°a® tbose Prospects you have
few of your clients are very written down on your memo pad
much
concerned, and that the that 5™ w°uld
sometime
majority of investors are much when you had more time. Now
less conversant with the pervail- you baye
Keep busy an<I it is
ing gloom that exists around the surprising how much business you
a

If the economic incentive

have

you

and

customer is
pride
jn trying to be always right is
secondary to obtaining the best
possible over-all investment re-

the

Don't

a

course,

and

can

you

itant investment sentiment before,

the key to domestic oil self-sufficiency

form of reinvested

ducing

be

long-

of

among

friends and

your

own

been

depletion allowance makes possible necessary economic
incentives jpi encourage exploration and production, in the

Anderson,

the

pessimism

worriers

or

your

v/hich

who has been
with the Municipal Bond Depart¬
ment of Dean Witter &' Co. for
Mr.

as

for the foreseeable future.

a
Sales

as

-

member of the Institutional

Department.

producing industry

the

chronic

Guaranty Trust cites retention of depletion allowance in oil-

municipal bonds, have announced
that
Edmund
G.
Anderson
has

toward

of

Times

change,

sound and confi

a

attitude

allow

Miss Osburg has served as
since 1942.

company

Key lot Adequate Supply of Domestic Oil

New York City,,
and distributors of

Street,

facts.

its effect upon the

in

range future of this country.

Essentiality of Depletion Allowance As

Co., "Inc.,> 57

Viding,

deter-

that would

prices

(1) Maintain
dent

ents,

Ingen Co.

not

were
no

Business Healthy

formerly Assistant Vice-

were

1929 and has

was

such

explosive overvaluation

an

security

ates,

William

nor-

a

Things You Can Do to Keep Your

Edmund Anderson With
JV Van Ingen &

of

trend

are

economy.
This is somethmg to remember when periods
of readjustment in the prices of
common stocks
are underway.
It
is a matter of perspective.

investment advisor to Funda¬

as

dent and Investhifent Officer of American National Bank and Trust

in

if

and

catastrophic

previously Vice-President of Investors Man-

was

agement Company, which serves

Assistant

.B.

doing,

are

the

worthwhile

and

new

profit opportunities can be obtained through reappraising the
outlook for a depressed security
and "switching" it into one with
a
more
promising future, better
income and of higher quality,

entire

coming

B. J. Van

in

whole

a

there would be

case

rent to

elected Vice-Presi¬

was

E. Osburg, Assistant Vice-President and Assistant Secretary.

Among

Sometimes

as

phenomena. The
Don't be.hesitant about taking
upward, then.it adjusts the initiative in these cases pro-

is

downward

At the

Two Miscellaneous Issues

as

Challenging

a

mal and natural

Rubber.

S.

well

as

job, you

fluctuations

the market

Goodyear

and

realist

a

not going to let periods of dedining markets interfere with the

Rubbers and Tires
In

are

are

* «-

•

you

good salesman of securities you

a

of

Royal Dutch and Louisiana Land
&

JOHN DUTTON

By

Kerr-McGee, Ohio Oil, Honolulu,
Continental, Shell, Sinclair,Skelly,
Socony

31

Management

J.—Election of Thomas J. Herbert

included

favorites

Other

>

(695)

Tannen
formed

&

York

New

in

securities

are

has

been

with offices at 50 Broad¬

way,
a

Opens

Inc.

Co.,

City, to engage

business.

Officers

Philip Tannen, President and

Treasurer;

Morris

Tannenbaum,

Vice-President; and J. R. Tannen,
Secretary.

32

The Commercial and Financial Chronicle

(696)

What

We See

As
and
ifre

Whether

like

Century.

Roosevelt

not—and

or

the

real

is

American history

to

definitely do not

we

contribution of Franklin

D.

The
•youth of the country has been all but brainwashed, and
all of us will have to'pay the penalty. The real task of
the true statesman, particularly one in such high position
and possessed of such magnificerit influence as President
Eisenhower, is that of turning the thinking of the Ameri¬
can
people back into, more constructive channels and lay¬
ing the basis not for a New Deal Republican party, but
a Republican party
that stands firmly for the true and
It

'

far

is

important than -any political party.

more

tried individualism and self-reliance that has
nation

well

so

*

•

as

we

can

/•

,

his

with

proposals which

than

more

once

further away from traditional

go

the actual work of the New

Americanism than

forward
Deal

4

page

-

suppress

v* :

v

lands?

V. At

the

in

,

alliance

western

armor..

nations

of

shock, both po¬

severe

a

own-

our

litically and economically, and
have a priority job to do in

building that

alliance on

we
re¬

real¬

a

istic, basis of trust and confidence.
'

Even

serious is the imme¬

more

merits

tions

time, the Middle
revealing some siz¬

is

able- cracks
The

foreign

same

crisis

East

peoples /in.

,

diate possibility of further

Soviet

penetration of the Middle East. In
this crucial area, a minor shift in
the

well

in

the

and mother-

na¬

-

of the cardinal elements in the New

Deal management of practical politics. It was reflected in
Mr. Hopkins' spend and spend, tax and tax and elect and

elect

It

outburst.

was

clearly in evidence in the early
come to Washington and ar¬

Invitation to the farmer to

his

range

solution at the

own

expense

of the taxpayer.

It could not have been clearer in the attitude of the New
Deal toward organized labor. This tactic, of course, helped
^'cement" various theretofore discordant elements behind

the New Deal.
It

did

nothing, of course, to help the country. Far
only did it unwisely and unfairly burden the
community with largesse of one sort or another to favored
groups, but it made beggars of large elements in the popuJLation—and beggars who did not ask alms but demanded
them as their right. Not only did it make demanding
beggars of large groups of citizens, but it soon and natu¬
rally led to an attitude of mind on the part of others that
undercut traditional American self-reliance and independ¬
ence. The New Deal's political success was
largely built
upon the basis of doing all things for all men who were
important politically and shamelessly laying the burden
upon the whole nation.
from it. Not

*

.

These
to

are

some

of the facts which should not be lost

sight by those .who

the sedulous

now call upon the President to play.
to the author and finisher of the

successor

New Deal faith. Do

they believe that they or any one else
good of the country really at heart could
draw much inspiration from a program of this sort? We
has

who

the

ciow

more

than

ever

world wide.

was

delegate to the United Nations

in

the

1953,

the

U.

Russians
technical

N.

denounced
assistance

With

such

control,

naturally, to expect any man, even
the immensely popular and influential President of the
United States, to sweep all this away within the space of
the few years he has left in office. For our part,
though,
we should
give him a much higher place in history were
fie

to

make it

would be

his

main

task

possible to build




from

a more

here

on.

Whether it

successful kind of Re¬

of

London, "• Paris
Very
quickly
the

Rome.
riches

the

of

would

vast

continent

African

be theirs

and

And

sphere.

of

tyloscow would have

mo¬

nopoly control oF#iore than half
And

resources.

we

out

people

business with

The

Russians

accelerat¬

are

their programs of
underdeveloped

to

technical
In

areas.

not
forget
becoming a haveimportant raw
materials. Furthermore, our abil¬
ity to make and sell cars depends
not only on such imported mate¬
rials but

is

income that

consumer

on

increasingly based

tional

interna¬

on

trade.

Atomic

might be the worst
thing that could happen; but it's
certainly not the only thing that
ouvht to

war

be

on

minds.

our

worth.

And

budget

they're

Soviet

the

roughly

selling

all

propa¬

for

way

times

10

that

a

of

Voice of America—blowing up

our

economic

have at

last stumbled

ancient

wisdom;

century, Rus¬
the Middle East
a

sian

designs

were

frustrated by the

in

British and
Today the British and

the French.

the French are gone.
How that
fateful shift in world power takes

place is

up

There's

no

to

and to

us,

else

one

us

who

alone.
do

can

anything about it.
Shift

nations

on

you

bit

a

of

catch

can

One

aspect of the transi¬

more

tion in world affairs which I think

should
shift

be

of

Soviet

struggle
While

mentioned

for

they

have

basic

have

changed their

to achieve it.

emphasis
is

with

us

opportunities and
We are faced with a

great perils.
of

problems,

economic

brush

familiar

new,

some

ones

in

new

a

the

find

next

year

starting

right

before
these
one

•

the

or

the

answers,

not

after

but

year

Vacillation
pressure
of

now.

urgent

events

only lead

can

from

Cannot

Afford

Passive

political

on

of

on

and

The

today

programs

war

more

international

aid

eco¬

cold

in

trade,

and

po¬

of

areas

East

Ger¬

the

yoke.-of

communism

Hungarians
they

have

were.

Shouldn't

>.

the

as

demonstrated

give

we

them the chance—or at least some

alternative

to

their

present

with the Kremlin?

What is to be
the

..

our

has

caused

ties
•

policy toward

Western Alliance?

crisis

,

■

The

such

a

Suez

severe

to

fire-alarm

diplomacy.
ahead of

got

to

and

try to lead and shape

them

to

There

is

the
no

United

get

out

best of our ability.
dodging the fact that

States

the

free

is

the

world.

Let's look at

questions that

some

In

that

keeping

of those hard

we as a

ask ourselves and
a

our

whole

Western

East?

we

in

do

—

to

prestige

economic

Europe

loss

of

the

Middle

we

be will¬

under whose

sponsorship will that
place—ours or the Russians?

take

So far it
are

of

looks

trying to

new

kind of pro¬

on a

open

a

world-wide front?

We

obviously
cannot
compete
solely with armaments and mili¬
tary aid. Basically, we must ac¬
cept
the challenge by devising
realistic

and

long-term programs

of trade and aid.

This is

struggle for which we
uniquely fitted both by tradi¬
and experience. If American

are

tion

a

know-how

anything

and

to

we

test,

ingenuity

contribute
mankind,

ot

progress

cisely in the

there's

if the Russians

Soviet economic and political

aggression

If

East

as

use our

all along the line.

government

completely

Middle

bill

the

How far should

areas

have

to

it

is

the
pre¬

of this conflict.

don't step up and meet this

then the Russians will have

licked
the

should

and

people must

mind.
In

what

—

compensate for the

loss

natural

gloriously or Hop
miserably before the judgment of
history.

—

do

help

propose

can no longer afford to take
passive stand and merely react
things after they happen in a

of

we

Finally, I would ask how do we
to go about meeting the

Stand

We
a

of trying
more

pol¬

satellite

many, and even Red China are
really in our own best interests.
Maybe the people of Red China
are just as anxious to
get rid of

gram

disaster to another.

of

to

such

Hungary,

hard

and

are

will star

seem

toward

East and West Germany?
Some
day—and not too far away—Ger¬
many will be united again.
But

to have to

the

abandoned

decide

ing to go in seeking a settlement
of the critical question—of
uniting

cannot ignore or

longer.
The
too high. We are going
ask the hard questions,

role it

do

and

trade-and-aid

our

Poland,

as

I

realistic

any

we

aside

leader

litical ideas.
Instead

old

some

their

way

infiltration.

realm

even

great

in

There is much

being carried

the

perhaps

great change which has presented

domination.

they

be

whether
icies

Moscow.

on

to

•

basic

not

that

Kremlin's hands to the extent that

may be forced to cut back on the
highest relative military burden
borne by any NATO nation and

and

a

tactics

world

goal,

is

it

honey than with

docile

events

Tactics

play

But

policies have
right into
the

under
your
sheltering
wing than seething with resent¬ withdraw her forces from Western
ment under your heel.
You
will
remember
It's a lot Germany.
easier to govern the world by hid¬ that she was forced to withdraw
from Greece for economic reasons
den
control
of
a
few
strategic
points than by trying to hold in 1947, and we moved, in to re¬
down a world empire by armed
place her.
Are we prepared in
1957 to pick up her share of the
force.
All of these things make up the tab in West Germany?
What can

sort

Soviet

to

our

It's better to have other

with

We've
in

tended

charge of be¬

communism.

on

that

economic strain in Britain that she

flies

more

stakes

For over

soft

them

we

Soviet

about "a fundamental shift in the

thread.

ing

we

these

de¬

guise, which

gling in the Middle East today—
and; dangling
by
a
very
thin

has been to risk the

appears

that
of

some

more

picture seems to me
a
graphic example of what his¬
torians
mean
when
they
talk
balance of world power." It seems
to me that is exactly what is dan¬

do

or

think

series

This whole

Even- .to- suggest

t

they make the satellites

technicians

grateful

Let's

fast

are

largejy -prohibit■
offering -them- economic

need

strangulation.
we

^

pendent

Marxist

vinegar.

not nation in many

drastic trade-, lifnitatidns

of

laws .which

from

us

they now have a
rapidly increasing number of ded¬

would have to meet their price or
submit
our
economy
to
slow

that

satel-!

economic /sanctibrisvdn'- the

should,'help

economic

N.

the

of the world's

apply

help.

of a spe¬
development
program,
SUNFED,
which
our
country has thus far refused to
U.

much

so

all

look at pur--re- '

new

cial

aid

ef¬

Thus far, we have tended to

announced their support

plucking,
growth and the
as firing a shot.
benefits
of
mutual
cooperation
yet-uncommitted promises beyond recognition.
peoples of Asia would in time fall
Any one of us could offer some
under
immense
economic
pres¬ good reasons why Russia has so
sures from Moscow;
sharply altered tactics that were
A setup like that would put a
working pretty well in a number
tremendous squeeze on us and our of
places. One of the best reasons
friends
in
the
Western
Hemi¬ could be
simply that the Soviets

without

lites.
form

Soviet

for the

got to take a'

lations with the communist

and

do.

N.

U.

act

can

sinister American im¬
Since then, however,
they have become ardent support¬
ers
of the idea.
They have also

those programs,

East.

anyf ree; nation

program as

ing

Middle

nor

perialism,'

now, effective working control of
the oil and the trade routes of the

nomic

It would be naive,

ulti¬

:us?c|tm;

-

Latin America.. When I

political sympathies of a few
highiy unstable governments
could give the Soviets, any day

.should

certainly doubt it. The task of putting the thinking
of the American people back on the right track will in¬
evitably be a Herculean one. New Deal fallacies have be¬
come a part of the very warp and woof of the
thinking of
the day. Mr. Roosevelt, of course, adapted a good deal of
his programs from what had been done in other parts of
the world, but his world popularity made it inevitable
that his programs here and his preachments would
give
great impetus to similar action abroad. The trouble is

k n oy/ fordure

Middle

ganda mills continue to roll—on

one

we

one;- but

no

an

Soviet

streets

was

All

that

do

*

anybody-else In*

perimeter as- fectively here until \ they .; knowunderdeveloped areas where the Us-S. stands. V
Imanother realm, I think/we've
East, Africa, Asia

to

as

the

and
a

satellite

to

;

on

the

this attitude

propose to
as

the- Russians.-'y Neither -the
to

policies of Europe just as surely
as if
the Red army patrolled the

general rank and file; which must be charged in very
large degree to Mr. Roosevelt. That is the practice of al¬
most everyone to view the political arena as one to be used
to "get what one can" for oneself. The encouragement of

we

mately bring about a.'-solutibn of
problems — except, possibly!

icated

the

what

the world.

not be possible to convert
Republican party into a consistent winner at the polls
in the way now proposed, but it can not be made to
deserve it in any such manner.
But there is another aspect of the political success of
President Roosevelt, and another, habit of mind among
I

-

these situations

they could ultimately dictate the

the

bring about ! a
lasting
settlement', of
disputes and to as¬
the free international use ;of
and

.

the
Suez
canal.-.The American
public is just,as much ir£the dairk

or

the Fair Deal. It may or may

we

to settle the Arab ref¬

problem, -to

ugee

just
sure

?

;

yet,?

want to do

these

has had

President

come

from

in the past.

as

Foreign

however, to indicate just what

is

detect, though, nothing is

have

followers

forward again

the House

as

Arab-Israeli

A Businessman's Views of

.

with what the New Dealers would now do. The
and

to go

are

we

the Soviets

Affairs Committee has suggested.
There has not been
much, as

about

served this

further
from the mind of the President or any of the others who
would have him rebuild the Republican party. It has
not proved particularly easy in the past to..build up a
commanding political party on the basis of doing what the
other party has been doing and preaching, but doing it
with greater moderation and more efficiently. As a matter
of fact, "moderation" is often found only by comparison
far

Continued

through the centuries. And what a challeng¬

ing task it would be. too!
So

rendered if

and to American future.

anybody attacked py a com-,
munist .'nation, .and
have ma^e
various other moves to discourage
arms

getting the thinking of the rank and file straight'
again would be a much greater service to the nation than
anything he could hope to do in the way of rehabilitating
the Republican party.
This service may, of course, have to await the arrival
of some other leader, but it must somehow, some day, be

..

.

like it

we

this

it.—

we

make in

It

quite un-American became the enlightened truth of
Twentieth

any such way* we do not profess to know.
do know is that any material headway he might

publican party in

Continued from first page

Thursday, February 7, 1957

.

at

us

the

game

we

know

best.

Both

and

needs filling out. We have talked
about recourse to "moral force"

private
enterprise have important roles to
play in that struggle. I would not

and

presume to

particulars

that

expansion by con¬
quest, we find the Soviets sweettalking their new targets. In rapid

basic approach to the problems of

lic

succession.

this

government,

terms.

new

.

Moscow

trade and

has

mutual

offered

aid agree-

on

support of
area.

record

the U. N.

as

our

.We have put ourselves
as

ready to defend with

role,

comment

except

I believe

we

in

on

the pub¬

very

general

must,- for example,

Volume

185

Number 5610

Y®.^consistent

and

.

.

long-range for and getting> what amounts' to,

•

policies in fbreign aid, if tney are
to be effective. I think we
sqould
be willing to be venturesome and
imaginative in our economic aid

thinking—where

goals

our

and

of- peace

prosperity^ we ought to be willing
to take enances.

I think

realistic

more

a

ought

we

that

p

be

may

coldly and logically to

used

pursue na-

We should ge. rid. ol the chj-dsh notion that we are out. to buy
love

friendship.-. Our- foreign
money should be spent in such

aid

or

way as to represent the best we
have !to offer in ideas, in people

we
is

then, it

them.

give

too rich

and powerful for anyone

to love us-.

should expect
nations to realize our

What

lsfor othei

we

friendship is to be desired and
our-antipathy to.** be avoided-in
their

poised that

up
a

while

have to

to

out

San

As

skin

the

and

abim

potential;-if

effective

world

quire the

same

and

will

own

,

kind of'dedication

unity of purpose that characpeople. . during
the

to

in

our

strengthen

and raise

the

living standards of
people we-want to do business

with all

over

f

the world!

7

absolutes.

"iOd

frmf, ^

Mr.

ample,

an

for

advanced

tion

be done by

can

between

ernment

to'.

coopera¬

jtndu&try and ?gov-

Earl

-W e

such

expand

activities.

investnient

foreign
Industry

lend its people and its special¬
skills to United States and

ized

Nations

United

nomic

agencies

of

eco-

in

arms

think

posture

our

i

real

a

Foreign Investment Problems

policy
politics—and I

Much

effort

.

that

for

respect

contracts

is

Democratic politics.
I
suggest that we cannot afford to
take a vacation from world realities every four years just because
we happen to have an election
running at home,
We

afford

cannot

to

be

caught

absolutely
fundamental
to
our
private enterprise system. Arbitrary actions in violation of agree-

asleep at the switch in the field
0f
foreign relations.
All of us

ments, such as Nasser's seizure of

problems

the Suez

foreseen and

canal, pull the

from

out

rug

right

international

under

in-

vestment.

But

out sin in

some

other respects. We

fail

sometimes

to

preach to our

we

not with-

are

the

practice what
friends abroad,

share

must

some

blame

might

that

have

prevented:

the

for

been

the gov-

where it failed to look
enough ahead, failed to keep

ernment,
far

ourselves

we

informed, or vacillated in
the face of political opposition; the
Congress, where it slid into a
rather
complacent
mood
and
people

obstructed many important polparadoxes of our country is its icies of the administration; the
outlook
on
foreign trade.
For businessmen
and
farmers and
years and years, it has b:en evihousewives of America who beOne

of

the

that

dent

contribute
of

the

United

world

can

by encourag ng

freeing

nations.

among

States

greatly to the strength

lree

maximum

a

continuing

great

We

of

trade

have

insist-

ently urged others to relax taelr
trade barriers.
Though tne present and

preceding administrations
have
recognized the importance
of liberalized trade and fought for
it, the United States sail reir.a ns
outside

the

international

agency,

the

Organization for Trade Cooperation, of which we ourselves
vide

main

the

were

to

pro-

vehicle for orderly interna-

a

tional

sponsors,

cooperation in the lifting of

trade barriers.
In recent years,
"•

that

we

are

despite the fact

enjoying

unprece-

came

a

little

weary

of

the

pres-

has

national

been

a

prosperity, there
steady rise of protec¬

tionist sentiment in the land.

high

tariff

vociferous

people—a

small

The

in.
we

I have
can

'tion

doubt that if

no

with

commensurate

we

do

posiworld
strength

again assume
leadership in the

once

of

our

a

and with the greatness of our institutions.
I

believe

country

if

the

private

—

people

of

citizens

economic

those
ested

the

policy, and still asking




we

us

here—will

more

heart

more

group—are

of

of

deeply
this

and

this
like

get inter¬

get

struggle

into
for

a

effective foreign policy, then

shall

be

getting at

key to success.

will

strong position to finance

The

"It holds memberships in the na¬

Uniform Prac¬

& Co., National

were

named

as

tion's

also is

Finance
-

Co., Executive Committee.
Borkland,, Jr., Tucker, .Aphony .& R.^L: Day, Na-+

Harold H. Cook, Spencer Trask &
Ernest

W.

Conduct Committee,

v,

»

r>.

,

tal

*'

^

.•*

-r-

Meeting

MILWAUKEE, Wis. —The an¬
meeting and election of of¬
Bond

Milwaukee

of

the basic

Governors.

Feb. 21, it is an¬
Brenton H. Rupple,
Arrangements for the

by

Group

are being made by Fred
Jenkins, Vice-President of the

of

chairman

and

club

the

Ar¬

Henry E.
Brew-Jenkins Com¬
is chairman of the

rangements Committee.
Schlass,

Inc.,

pany,

with

start

a

meeting

The

Committee.

Prize
will

of

business

America Shares
A

with

Harold

A.

Madary,

Baird & Co., and Glen

Robert W.

Kocher, Paine Webber, Jackson &
President
the

Rupple has appointed

following

to

to

the

select

Nominating
slate

a

of

Brew-Jenkins

Vice-President,
Fenner &

Lynch,

liam

C. Davis, of A.

Co.;

Harold

&

G. Becker &

Jr.,

ton

of Emch
Julien, of

yesterday

with the public offering
First Boston Corp. and
associates of 250,000 shares of the
aluminum
producer's
stock
at
The

!

mu-

f

4-

,

represents

stock

This

a

portion

of Arthur V.Davis,
Board Chairman of the company,

of the holdings

who will own approximately 4.6%

the

0f

common

Aluminum
receive
1—

sale.

not
"

stitute

Co.

integrated

an

after this
of America

stock
any

proceeds.

its subsidiaries

and

Alcoa

tions ranging

producer

of

fabrication

bauxite

pany
are

for
for

products

sold for
ordinarily

'£

the

Hprhprt

™fe23

b_
M

Wce Pres^

J"1!00*-,,

JJ tuA ZIL

,

^ W

k

g

Tr^

anH

Eastman Dillon branch, and

-

dpnart-

the investment department" The E- S- H°Pe & CO'
of

eauioment
equipment

materials,

electrical

equipment,

household appliances,

machinery

and

remajn

many

other

under

Philip Theapold
Director of Boston Fund
BOSTON, Mass.

Election of

—

H. Theapold as a director
o{ Bo*Jston Fund> one of the largest
mlduai investment companies in
Philip

thg

annou.iced

is

c<Junt

by

T Vance, President,
y
Mr. Theapold, one of the group

Henry

young

men

which oiganized

Boston Fund 25 years years ago,
is a partner of the Boston real
estate management firm of Minot,
DeBlois and Maddison.

He is also

of Employers

Group In-

a

trustee

surance

Companies,

Investment

Trust,

Investment

for

intact

consoiidation.

com-

civilian purposes
used extensively

win

22

th

products.

of the

transnortation
transportation

building

and

semi-fin-

alloys into
and
finished

Aluminum

the

to

aluminum

aluminum

ished

of

with operatrom the mining and

of

processing

of
t

■f"

con¬

aluminum

primary

office in

Capital

manage

charp

npr

main

the

City.

Trust,

uses.

Consolidated

the
the

Diocesan
Provident

Institution for Savings, and MassaConsolidated net sales and opchusetts
General
Hospital,
and
erating revenues of the company treasurer and trustee of St. Mark's
...

^

.

,

.

,

,

for the nine months ended

Sept. School; as well as a director of the

Marshall

30, 1956, totaled $658,728,000 com-

John Hancock Mutual Life losur-

Loewi, of Loewi & Co.; Bren-

pared with $634,139,000 in the like

an0^pa^*; a^othercor^rati^.

&

Thomson

H.

Baird
of

Emch,

Company; Oliver A.

A.

Inc.;
Aus-

Pierce,
Beane; Governors, Wil¬

Merrill

of

trup,

Company,
Joseph
N.

Co.

made

(Feb. 6)

will

Tariff for guests $15.

Curtis.

was

York

firm is in excess of $17,000,000.

of

Aluminum

of

stock

America

by

at

made

distribution

secondary

common

„

Securities Corp. as

Dillon, Union Securities

with

Co.,

New

.......

of

Co., founded

merged last Septem¬

ber with Union

Eastman
&

session

5:30, followed by a cocktail
period until dinner at 7:00 p.m.
Hotel
Reservations
may
be

the

key

48 years ago,

Offers Aluminum Go. of

meeting
D.

offices throughout
nation by a 4,000-mile private

other

15

Eastman Dillon and

First Boston

Thursday,

nounced

President.

Diego office will now

wire network."

Club

will be held in the Wisconsin Club
on

$nd tax-

exempt financing.
s

pointed by the President, subject
to the approval of the Board of

nual

ficers

experienced

thoroughly

and

specialists i$v corporate
"The San

Milwaukee Bond Qlub
Annual

ex¬

ing the firm offers a broad range
of services backed by ample capi¬

'

tional Business

securities

principal

changes, including the New York
Stock -Exchange,
and maintains
active trading markets in a large
number of unlisted securities.
In
the field of securities underwrit¬

members of various committees:

Committees.

investors," Mr. Hope said.

tutional

■

Bassett, W. E. Hutton & Co., Executive and

K.

expanded Eastman Dillon
provide complete facili¬
insti¬

"The

-

following

Earl

Yo?k

firm will

of the

member

a

•'

Nix, Riter & Co., Information Committee. He
National Business Conduct Committee.

Allen J.

•

now

Midwest regions as a
major investment area.

Quotations Com¬

',"*'

•'

Thomas B. MacDonald, Blyth
tice Committee.

added,

ties for both individual and

Purkiss, Walston & Co., National

C.

'

The state,'• he

and Chicago

„

of world events and took a
officers
and
governors
for
the
few years' vacation from reality,
All of us, in short, who decided to coming year: Harold A. Franke,
of The Milwaukee Company; Les¬
stop worrying about those distant
ter
B.
McElhiney, of Bache &
troubles — troubles
too
big,
it
ompany;
Robert J.
Riley,
of
seemed, for you and me to do
Loewi & Co.; Brenton H, Rupple,
anything about—and
who sai,
of Robert W. Baird & Co.
"Let George do it," or "Let Ike
The Nominating Committee re¬
do it."
the
following
selections:
It's time that we returned to ports
Fred D.
Jenkins, of
the realities of the world we live President,

sures

but

still wag¬
ging the dog of American foreign

!

>

Albert

mittee.

Committee

'

dented

Committee.

partisan
Republican

mean

a

:

; . '
1
said Eastman Dillon,

to eastern capital,

ranks behind only the New

Chairmen:

Charles L. Bergmann, R. W. Pressprich & Co., National Busi¬
Conduct Committee. He also is a member of the Executive

take

to

as well as

the

responsibility for
encouraging the growth of American
foreign
investment abroad
lies
with
the
foreign 'countries
themselves.
If they want American dollars, they should accept the
fact

ness

of

out

Cook

appointed Committee

leadership above all requires that
make

H.

Jr.

us.

world

of

Harold

Bassett

.The following were

certain

a

make liars of

may

I

foreign
of

'

*

®a.use or do business with a cer|aln country or system—because
tomorrow

we

development.

up

K.

Borkland,

W.

E.

.

'

today s heroes are
villains. "

take

.

Hope

ifornia!"

i

Things
do
constantly change and there's no
sense
in swearing that
we
will
never

-

-

rapidly! growing industries in the
west, particularly Southern CaL-

'

Suard against hypoc-

00

-

the
last

access

be-in

determining whether1 or
we ^utbdeal with certain na^101}s J
their leaders on the
as,1f 0 morality^ The experience

morrow's

S. Hope
•

.,

in

stake

a

increasingly impordeveloping the less
countries, and there's a

is

lot that

have

we

tool

tant

can

with

,

*w? decades certainly
that, we businessmen also have ou§1
have taught us that there
an obligation to help our governPan
absolutes in mternament
promote its economic ■■ ob-':1 affairs^ Yesterday s lmplacjectives. Private capital, for ex- a
enemies are today s friends,
Because

'

Cali-

in 1955.

..

terized ".our

long-run business inter-...ou<?
the economies ris^ ln

best

ests

is

Edward

Dil-

in

n

i t h

w

first
having
been
October in Los Antgeles. Operations will be directed
from spacious new quarters which
E. S. Hope & Co,-occupied late

-, re-

,

it

affili-

d

e

-fornia,
opened

in.th#wori4

because

but

the

be

s0

we

ever a peo-.

leaders

t

.lo

pl(t did have it. "But acting like

business

a

threat

[

office-

will

Purkiss

Eastman

viewpoint.
feet. ,lief interest
about us.
for example, -fhat. an enlightened '-T *; --*••
- . - up**-*, ■ ■
trade
andaid ".outlook is sound
^
opinion,, we Rave-to stop
hot merely because of the Soviet defining our'dayrto-^day actions in

the

C.

the

'I.say

1.

San;

second

me^t

to

partner

Diego
Albert

Charles L. Beigmann

-

the. wisdom,

gen-

Dillon Mar.

You may very well ask whether

people has

will

a

Eastman

n-

a

any

1

e r a

i

a

from

v

He

The

.-** ' *
*.. course of World vV'a'r Il.iWe've
gat
businessman, I -ant natur- ■ bo get-6ur individual noses out of
ally concerned with this situation the everyday rut ;9iid Take a livei

•

Diego

become

That Potential"

Have

"We

-.

of

firm.

,

1

-

•

•

the

dent

J

"

paranei

;;•

-

Presi¬

Hope,

with

act

1,

announced

our

-

Eastman

by Edward S.

we

a

in¬

Co.,

&

with

bankers,

fective Feb.

sanity, wisdom and unity wnh-

a

Consoli-

Calif

S.' Hope'

E

of

Dillon, Union Securities & Co., ef¬

evi-

seems

DTFGO

dation

vestment

probably can-t 6f.
way through it.play this one heads
We are going, as I suggested

best interests.

own

"

possibilities and
immense
dangers>
is a situation so delicately

love us
for^whatwre difficult a. challenge.
Ifce are_much loo-big,* bav(> that

to

going

bankers to major NASD committees.

can

dent that today we are up against
a world situation of both immense

portraying the strength of

society to peoples abroad-. But
should recognize
_that no one

our

With Eastman Dillon

the appointment of seven New York investment

announces

is
jn summary,

a

and in

of the Board

Dealers,

E. S. Hope to Merge

Reissner, Indianapolis Bond & Share Corp., Chairman
of Governors of the National Association of Securities

sponsibility for leadership in trie
world.
*
.

®"ds ends-that we beliere /0I-d )0 ]ucb
'VV
"We've got to

-

Frank Li

that, on the whole, protectionism is an unnecessary and expensive luxury for this particular
great nation with its great re-

and

"T w°nai rPP™ac'1 lo fore'Sn
f'f- Weand military power o,t
should look upon as
wealth
ai

We've

truth

promises to pay off big in terms of

reaching

New Yorkers Named to NASD Committees

American,

every

got to keep in
mind* the fundamental and pimple;

big investment

a

from

subsidy

a

consumer.-

33

(697)

The Commercial and Financial Chronicle

.

&

Rupple,

ot

Robert

Co.; James A.

Paine,

Curtis.

McKinnon;

Webber,

W.

period

of

1955.

Net

income

for

His electjon f.]ls the vacancy on

Swoboda,

the first nine months of 1956 was

the

&

$67,655,000 against $66,278,000 for

board of directors formerly occu-

Jackson

the

same

months of 1955.

nine_member

Boston

Fund

pied by the late Powell M. Cabot.

34

(698)

The Commercial and Financial
Chronicle
:

Continued

Carrier Debentures
Offered at

1011/2%

Public

offering, of $i8,000,000
Carrier Corp. 4y%% subordinated
debentures, due Feb. 1, 1982, at

101%%,

plus

interest

accrued

from Feb.

1, 1957, was made yes¬
terday (Feb. 6) by an investment
banking
syndicate
managed
by

Harriman

Ripley & Co.
Noyes & Co.

Hemphill,
Net

proceeds

from

inc

and

•

sale

of

added

to

the

debentures

the

cash

funds of the

corporation

will

be available

for

and

will

be

general

4

page

while Ford

Motor

Co.

and

23,151

tne

triicks, compared

preceding!

145,191

cars

automotive

activities

brightened

were

ment of the American Motors

Corp. eight-day

Nash,

cars

Hudson
plant

and

Rambler

ital

expenditures

and

additional

penditures within the next two
three

of

above

normal

capital

expendi¬

tures.

reported.

'

by settle¬

at

the

debentures

new

1,

unless

1967,

deemed, into
conversion

will

previously

common

rate

of

Kenosha,

amount

bentures

will

be

redeemable

optional

redemption prices
from
105.50%
to par,

cars

accrued interest.
a

at

plus

The issue carries

sinking fund commencing in
and designed to retire about

1962

60%

of

the

debentures

prior

to

an

increase of 4.6%;

stalls

such

poration

equipment.

The

cor¬

two manufacturing

owns

plants located in Monrovia, Calif.,
and Indianapolis, Ind., and in ad¬
dition

the

in

two
plants held
Tyler, Tex., and
Lexington, O.
A. whollylease

at

12.0%,
West

1956

than

in

1955.

the Middle Atlantic and

respectively.

Coast group,

The

greatest

The

best

Pacific groups,

decline

17.1

up

recorded

was

Small

For the year ended Oct. 31,
1956,

Carrier Corp.
had

and its

ing

consolidated

net

sales

At
record

Conservation
Mrs.

Rose

steel

production

Trend

Some

of

the

adverse

of

coast

the

to

New

coast

York

Exchange, will address 200
members

of

the

Conservation
Feb.

7, at 2

Hotel

on

Woman

in

McAlpin

the subject: "What
Every
Should
Know
About

Stocks."

throughout
the
country
registered representative for

the past 20 years, pointed out that

"Harris, Upham is happy for this
opportunity to appear before the
National Life Conservation
in

further

a

extension

the

about

other

order

an

capital

equipment lines, are
below the "abnormally high"

not

foundry equipment, resistance welders

increases

will

levels of

Phila. Inv. Women Hear
PHILADELPHIA, Pa.—Tne

In¬

vestment

Women's Club of Phila¬
delphia will be addressed on the
topic of "The Economic Implica¬
tions

of

Business

Forecasting" at
Meeting being

its next Educational

held

on

5:20

p.m.,

delphia

Monday, Feb. 18, 1957. at
in the Fidelity-Phila¬
Trust
Company
Board

be

and

publication

try, the biggest
auto

said

much

of

plateau

a

the reduced

relatively slow
of steel.

consumer

pace

But

a

industry in January.
Although demand for
not all forms of steel

was,

and

year

demand

ago.

operating

making

96.6%

rate

of

capacity

Iron

readily available.

steel

for

of capacity

the

week

the

like

week

month

a

Institute

beginning

2,519,000 tons.

128,363,090 tons

A

of Jan.

as

year

the rate

ago

the

ago

"

"
.

of

Feb.

of
an

that

the

a

Electric

Institute.

This

average

98.4% and

a

decline

the

week

to

in

of

a

year

- ;..

steers

included

bellies. " Lower

and

hams,-lard,

coffee,

beef, butter,-

in

price were
cottonseed oil,

Hour,
cocoa,

Comodity Price Index Showed
in

a

Mixed

Latest Week

earlier

the

a

year

ago.

,

brief flash of strength in

a

declined
wheat

with 280.22

and

last

belt

rye and soybeans, grain
Improved growing conditions in the
drop in the export buying contributed

week.
and

weakness in

a

wheat

with

both

old

and

new

contracts

crop

Large'deliveries of cash corn resulted in a slignt drop
prices. Oat shipments from Chicago in the week ended Jan. 24,

amounted

to 593,800 bushels, compared with
502,200 bushels in
previous week." Purchases of grain and soybean futures on the
Chicago Board of Trade last weeK totalled 43,000,000 a day com¬

tne

pared with 41,000,000 a week previously and 30,000,000
Orders

for

a

year

ago.

wheat

hard

bakery flour were limited the past
week after fairly active trading in the
preceding two weeks. Flour
millers expected some recovery in buying in the coming weeks

pro¬

bakers' stocks diminish. Flour
purchasing for export was about
equal to last week's volume. Rice prices firmed as buying rose to
the highest level of the season, well above tne
average of the time
as

The

of

year.
A

previous

ing

shortage of rice in the Far

by

some

other

markets

The

prices

foreign

East,] coupled with heavy buy-

countries

helped

to

support

tne

rice

-

volume

of trading in coffee was high and steady and
slightly higher than a week ago. The recent rise in

were

coffee

The

past

week's

output dropped 88,000,000 kwh. below that
week; it increased 782,000,000 kwh. or 6.8% above

of the previous

the comparable 1956
ended Feb. 5, 1955.

Car

week

and

2,275,000,000 kwh.

over

the

week

Week Ended Jan.
26,
1.3% Above the
Preceding Week

Loadings of
8,476

cars

Ilog

revenue

Loadings for
cars,
1956

a

1.3%

or

the

above

week

decrease of 26,105

week

but

increase

an

corresponding week in 1955.
U. S. Automotive

ended

cars

of

or

Jan.

3.8%

with

the

28,629

Last
compared

week

with

level
the

totaled

cars,

or

665,745

corresponding

4.5%

above

the

Output Pointed Higher In Latest Week

production

in

the

week

ended

Feb.

1,

1957,

Reports," moved into February
set during
January last.

pattern

industry assembled

145,191

than

a

than

last

prices

year;

slow and their prices edged downward.

was

maintained

were

hog

receipts

an

preyious

estimated

week.

The

146,897
past

cars,

week's

by

Heavy stop loss selling in
companied bw ajsharp drop in
was

rather slow to respond

reaction

in

domestic

bales,

of

some

higest

the

levels
were

in

more

smaller

Accord ing^cr—an

markets

were

was

ac¬

The domestic market
Losses from the

largely recovered when trade

cloths remained

gray

cotton

more

time

sugar

prices.

buying.

consumption
first

the world
sugar

apparent effect

no

American

4,000,000

Current
fiber for

the

to the world decline.

markets

Trading ijy^cotton
mill shutdowns had

sumption

at

Western slaughterers

year.

interests increased their

output for the latest
"Ward's Automotive

high

1957,

.

Automotive

according to

26,

below the

Cocoa

steers and heifers

freight for the week ended Jan.
26, 1957,
the preceding
week, the Associa¬
tion of American
Railroads reports.
rose

buying was reflected in an increase in shipments from
to 512,000 bags last week from
283,000 bags at week ago.
prices slid lower, notwithstanding a brief rally with some
commission house buying.
Warehouse stocks of cocoa, at 307,843
tons the past week were about 4% larger than a year ago.

Brazil

Contrasting with the active trading in hogs, the demand for

Loadings Advanced in

:

week earlier.

a

the $5.95

over

affected.

of

by, the

from

gain of 3.5%

a

fTf: .!

.

Except lor

1

distributed

V'

t

raw

Winter

the

capacity

was

.

The

prices

|steel-

electric
light and power industry for the week ended
Saturday, Feb. 2,
1957, was estimated at 12,322,000,000
kwh., according to the
Edison

fail¬

Slight gains in the prices for some commodities were offset
by moderate declines in the prices for others tne past week. The
daily wholesale commoaity price index, compiled by Dun & Bradstreet, Inc., fell to 298.28 on Jan. 29. This compared with 299.09

4,

was

Consecutive Week

Trend

'"

energy

me

compared

as

in all except three regions.

year ago

Jan/29, compared with f>6.14

steel

is higher than capacity in 1956.
based on an annual

electric

previous

inoex. represents the sum total of the price per pound
foodstuffs and meats in general use. ana its chief func¬
tion is to sho\y tue general trend of food
prices at' tne wholesale
level.'

of

amount

$100,000

ago.

year

..

Electric Output Moves Lower
Again the Past Week
The

a

the

price index, compiled by Dun & Bradsiightly for the third consecutive week

level shows

Wholesale

for

announced

are

1, 1956.

a

com¬

actual weekly production
The operating rate is not

99.1%.

or

increased

$6.16* qpv
■

,

of 31

any
over

Third

r~

wheat, corn, Tpyer*bats,
hogs and rice.

1957, equiv¬
castings, as compared
capacity, and 2,498,000 tons (revised) a week
ago.
The industry's ingot production
rate for the weeks in 1957
is based on annual
capacity of 133,459,150 tons as of Jan.
1, 1957.
For

in

up

eggs,- potatoes,

Plates and struc¬

having 96.1%
industry will be

entire

229

Twenty-six of
of

excess

Commodities^oboted higher last week

lighter than it

companies,

the

for

Steel

and

in

and

m'the

'

«.

shapes continue to be in strong demand and a
Chicago mill
reports its capacity for plates and
shapes could be sold two or three
times over.
American

Inc.,

The current

pickup took place in the

tural

The

week

6*2 from '37

to

the

of

and

of the automobile indus¬

forms of steel is

many
are

liabilities

wholesaleTood

reaching

material hand¬

over

room.




and

1955

1955.

The

last

rose

258

in

k

street,

metalworking authority stated.
Trade association spokesmen for makers of
electric overhead
that" 1957

221

$5,000,

-

-

involved

were

failip-QS.

States,

14

The

concerned

a decline in order
backlogs to more
Fewer big automotive orders are
being offset
by more small orders from diversified customers.
The story's
the same in other capital
lines, the

agree

prewar
.

more

manufacturing declined slightly from a year ago.
of the nine major geographic regions
reported an in¬

i;
'

manageable levels.

ling machinery

or

(.

Wholesale Pood Price Index Edged Higher For

dip
and 1956, since they welcome

cranes,

sligntly above the

the 264
toll of 318 in
and

are

parallel

in

the

firm's nationwide investment edu¬
cation program."

■

Ne\y England was noticeably lower than last year and
the East South" Central toll dipped slightly.- Failures in the West
South Central region remained at the
corresponding 1956 level.

,

experiences

Society
of

trucks
in the

increase

.

Mrs. O'Neill, active in women's
a

23,138

ago

year

a

of 1939.

More businesses failed than

department of the

week.

groups
and

with

The level in

apparently arise because
machine tool orders
dipped to $57,000,000 last December from a
year's average of about $77,000,000 monthly.
However, the builders whose business fortunes often

Life

Thursday,

the

23,151

were

Tolls were considerably mgner in the Middle
to 110 trom 93, in the Soutn Atlantic, up to 24
Pacific, up to 72 from 52i
Small decreases
occurred in the East North Central and East South Central States.
from

women

National

Society,
p.m.

and

Stock

there

compared

the similar week of 1956.

m

forecasts

was placed at
2,439,000 tons
comparable because capacity
percentage figures for 1956

with 35 offices

and

cars

ago.

year

a

against

as

industry

The

in

lower, it pointed out.

are

representative

members

140,582

year

week, ago.

a

Atlantic

gloomy fore¬

magazine, exactly half show gains for the latest month and
losses.
Compared with year ago standings, 17

ham &

with
Harris, UpCo., 99 Park Ave., nation¬
brokerage firm

This

cpqsiderably above the 273

and 44

crease

Monday last.
It adaed, the
industry is being beset by a rash of
casts which appear unwarranted
by business trends.
Of 32 indexes used in the Business

registered

investment

26,690
bxftput last

businesses-had

Seven

and

metalworking still
the making despite softening in some
parts of the
"Steel" magazine metalworking weekly, declared on

economy,

duction

wide

-

IriTne

casualties

level and

96.6% of Capacity

for

year

alent to 2,472,009 tons of
ingot and steel for
with 97.6% of

Society

O'Neill,

*

trade groups had higher tolls during the
from 19o6 occurred in wholesaling, retail¬
ing and service .with the toll in the latter line twice as neavy as
last year^t However, construction failures remained at the 1956

in

appears

of

Mrs. O'Neill to Address

last

week

reported

States.

Failures edged

All

the

subsidiaries

$193,194,000 and consolidated net
profit of $9,369,000, equal to $5.26
per common share.

preceding

-

-

agency

and

failures-tender

week..

has been laid to the

subsidiary,
Bryant Manufacturing Co., Ltd.
Cambridge
Corp.,
a
subsidiary,
operates a new plant in Lowell,
Mass. On Jan.
1, 1957, the cor¬
poration had about
10,400 em¬
ployees.

the

United

was

with 24

Steel Production Scheduled This Week

A

toll

week's

off 15.2%.

another

Canadian

the

week

1955.

week

and

in

1956 will be less
spectacular than 1956 gains
Industrial furnace makers echo that
sentiment, as do
ponent producers.
A

rier

in

Liabilities! of $5,000

comparisons

Canadian subsidiary, Car¬
Engineering, Ltd., owns a
manufacturing, warehousing and
office building in Toronto, as does
owned

170,048 units, or
week s

to

tne

assembled.

the comparable week

the previous year's total of
$5,922,796,969.

over

ing permit volume in

operates

under
New

of

■

Business^ Failures Rose Sharply the Past Week

York City building plans filed during
1958 were up
$861,609,508, fiom $667,463,417 in 1955.
Five of the eight geographical
regions reported larger build¬

higher and 15

instances the corporation in¬

-

Commercial- and industrial failures climbed to 320 in the
JmL 31.from 258 in the preceding week, Dun & Bradstreet, Inc., reports. At the hignest level lor any postwar week,

to

Carrier

some

that

-

balance show

manufacturing and selling a broad
line of air conditioning,
refrig¬
erating and heating equipment. In

I \+i

"

New

2.9.1%

maturity.

Corp., with headquar¬
ters in Syracuse, N. Y., is engaged
principally
in
the
business
of

trucks amounted

above

.

Although there were some signs of a let-down in construction/
activity in ru56, the volume of building permits lor the 217 cuies,
inducting New York, reporting to Dun & Bradstreet, Inc., reached
a
new all-time high of
$6,19o,884,821 for the year. This marked

of

rang¬

-

week
was
placed at 8,500 cars and
previous week Dominion plants built 8,485
and 1,736'trucks and for the
comparable
iouo weeK, 0,059
and 1,138 trucks.
"
'
'

cars

I

re¬

shares

and

cars

corresponding

were

Canadian

.

stock at the

16

ti

week ended

for each $1,000 principal
of debentures.
The de¬

common

ing

be

including Feb.

the

in

week

1,701 trucks.

"

■

appeared in

The

convertible to and

made

Saturday work piaps were announced the past week at three
Ford Division plants, one Mercury
plant, Lincoln and Chrysler
Division,
elsewhere, five-day operations prevailed, "Wards"

or

in the approximate
$30,000,000 over and

years

amount

Last

Assembly of

su'iKe.

resumed

was

Monaay this week.

on

week,

previous

corporate purposes, including cap¬

working capital expenditures. The
current expansion and improve¬
ment program of the corporation,
already under way, calls for ex¬

tne

146,897 cars
and 23,138 trucks in
are

week.

wetK's

ine

to

,r

-

Last

26,690 trucks

"Ward's" last week

n

week's"cfir output rose above that of the previous week
by 1,706 cars, while truck output advanced by 13 venicies during

slipped slightly, the statistical publication

estimates by

Thursday, February 7, 1957

.

v

an
increase of *1,719 units
output, states "Ward's."

noted.

Production

.

••

'

production total of

The State of Trade and Industry

Wis.,

the

from

-w

.

'

,

';

v

't

is

at

than last
is

since

on

the

slow

the

past week;

prices. The present con¬
of about 15,500,000

rate

season.

exceeding

production

of

the

raw

1950-1951.

estimate

for

the

National

Cotton

Council,

-

-

Volume

185

Number 5610

.

.

The Commercial and Financial Chronicle

.

(699)

3,5

<4

.

it-ih

consumption of American cotton is likely to reach
20,000,000 bales
in about five
years."
v•
/'■
**~
-**
"
*
•;

Casey, Belz Appointed

.

Trade

Volume

But Held
Consumer

Registered

Mild

a

Decline

Last

Slightly Above Like Period

In

Week

PHILADELPHIA, Pa.

buying

of men's apparel, television sets, major
appliances and houseware dipped
moderately the past week, out
total retail volume was
slightly above that of the corresponding
week last year,

The

call

i

The

a

total

and

new

dollar

used

volume

Wednesday of last week
year

according

ago,

A.

passenger

of

was

to

1956

retail

Vice

vestment

Frank

T.

-

Betz,

President,
and
Jr., Sales Vice-

4-4; West North'Central —4
Central

but
.

international

-f 1

to

Dun

ica

by

& "

Bradstreet,

0; South Atlantic —1 to

in

fresh

produce,

increases

in

wholesale

orders

Spring apparel offset

textiles, houseware, and
Total wholesale trade

He

goods

some

for furniture,

decline

a

in

the

and

appli¬
buying

food products.

close to that of the

from

the

Jan.

26,

the

Federal

1957,

was

Reserve

Board's

increased 2%

from

index

the

recorded.

gain of 4%

was

For

ended

period last year. In
increase of 2% also was

preceding week, Jan. 19, <1957, an
For the four weeks ended Jan. 26,

was

week

like

reported.
2%

the

for

1957,"

increase of

an

the

period Jan. 1, 1956-to Dec. 29,
registered above that of 1955.
3
"

1956,

spell

a

of

According

wintry .weather,

the

to

Federal

Reserve
Board's index, depart¬
City for the weekly period ended
1957, showed an increase of (6% above the like period of
last year." In the preceding week Jan.
19, 1957, a decrease of 1%
(revised) was reported1. For the four weeks ending Jan. 26, 1957,
an increase of 4%
was registered.
For the period Jan. 1, 1956 to
Dec. 29, 1956, the index recorded a rise of 6% above that of the
corresponding period in 1955.
store

sales

in

New

York

Jan. 28,

Debentures Offered
An

investment banking group
headed by The First Boston Corp.'
and A. E. Ames & Co. Inc. offered

which

to

of

owner

the

»

For

the

11

months

of

the

ended Nov. 30, 1956, total
operating revenues of the Com¬

year,

amounted

principal

year

interest

served

Province of Quebec, will
payable in United States funds.

The

net

mission

from

bentures
the

proceeds
the

will

sale

be

of

payment

to

1955.

of

the

applied
series

de¬

toward

E

the

Harvard

maturing
March
1,
amounting to $61,057,300.

1957,

Robert W.

elected

Jan. 1, 1951 and Nov.
1956, the Commission made
capital expenditures of approxi¬

mately $418,000,000 and has a pro¬
gram for such spending which be¬
gan Sept. 30, 1955, of about $520,to

through

have

tions

and

period

It

from

provision

approximately
the

1962.

available

expects

its

for

opera¬

reserves

$210,000,000

from

Sept.

for

30,

1955,
through 1962. After giving effect
to the issue of $35,000,000 series P
debentuies in
indicated

December, 1956, the

balance

of

mately

$145,000,000
program
will

the

through
The

additional

at

the

Commission
from

after

at

103%

after Feb.
Feb.

the

if

be

ince

Crown
of

received

Mr.

option
prices

has

of the

of

redeemed

on

banker

firm

F.

Olt

Betz

in

both

on

and

&

Seal

as

is

member

a

an

a

and

associated

director

tainers,

investment

an

of Francis I. du

1944 and

is empowered to




in

1953,

Delaware

bringing
experience

retailing and wholeHe

was

later

Vice-President

and

Sales. Direc-

business.

tor .of

named

of

with

the

Pont &

Co.,
Mr. Drummond

Connelly

Con¬

uibLCr0sminacn-an offlce^htch
7.
uince wiuuu
...

he

11c

.

will continue to occupy.

Mr. Betz

up£; *lL'

,

,

graduate of Rider College and

a

a

Bachelor

of

in

gree

with

Science

Business

Administration,

De-

the

Air

Marine

1st

Wing in
g

Philadelphia,
Pa.,
and
Piasecki
Fcunoation; and is also President
of

Robert
Watchorn
Charities,
Ltd., and President of Wissahickon
Bridge Corporation.

Edie & Company, Inc., investment
counselors
and
economic

consultants,

the

announced

Robert

E.

Isakson

Vice-President

time

same

it

nounced that G. Davis

as

the

of

was

in the

an-

Greene, Jr.

associated

become

firm

with

the

accounts management

department.
M4

Isakson

Greene

of

the

an

First

Banking
& Trust
Philadelphia;
Mr.
associated

was

Federal

"vO"hs''formerly1

Treasurer

Pennsylvania
Company,

Reserve

with

Bank

the

Phila-

of

Spiegle is

in

the

—

Samuel
Broad

George Galleher

New

the

of

3

,

Exchange,

and

the

18

on

&

Co., 25
City,

York

American

Stock

American

siock

Feb.
to
paitnership

Sabin

.

the

for-

It

John

31

from

R.

Atwill

minority holdings in

partnership.

Alexander

L.

Robert

at

111

Broadwav

New

&

York

Co.,

IneaJeIn securities business
Offers®
Robert L. Alexander',.
to

a

are

President

A.

her

the

and

Alexander,

Bertram

is

and

Treasurer;

Secretary.

also

D.

H.

M.

associated

firm. Mr. Alexander

was

with
for-

merly with McGrath Securities.

sys-

ties in
many

England, Belgium and Gerhave been considerably ex-*

panded

in

recent

of

cap

but

years,

due

unstable

in

to the handi-

economies

and

erratic

in Brazil to handle increased

or-

ders.
Telephone operations in Latin
America have not been

sat-

very

has

Phones.

four

tories

central

tists

and

manu-

labora-

3,500 scien-

over

otner

manufacturing

other

researcn

employing

while

experts,

subsidiaries

have

laboratories of. their

owns

or

also
It

own.

controls 11 telephone and

radi0

operating

cated

in

South

Caribbean

subsidiaries
America

lo-

and

two marine radio

the

com-

In

Puerto

Rico,

factory

owing

the

to

and *s

Panding.

58%
&

interest

in

American

Radio, America's largest

international

cable

and

radio-

telegraph network.
...

y

s

.

subsidiaries

nlav

role1'in

l)0rtWt

naUonV de

thd

acti«ti<^ Federal

im-

an

unsettled

undertaking

now

has

a

new

economy-and wholly inadequate
rates- In Peru, IT&T received apProval last year of increased rates

Pansion program.
Domestic as well

Cable

a

rate structure in 1952 encouraged
a program of expansion. The situation in Chile is still unsatis-

panies [n England and Spain, and
has a 42% interest in the principal"
telephone company in Mexico. It

ex-

/foreign

as

manufacturing companies
Federal

an
.. .

are ex-

Telephone

&

Radio Company and Federal Telecommunication Laboratories have
both opened branches in the San

Fernando Valley near , Los An^eles, while .Farnswortli. Electron-

Electric

'^/^ral Laboratories^

£orporallotn h,asf rcc.fved an Air
j,orce contract for the operation

branch working in Palo Alto

.,anH

mointonon/1Q

and

^

mrw

maintenance of DEW — the
early warning radar line

tiis^an't

the

across

Arctic—as

integrated

civilian

well

an

as

defense

and

communication network in Alaska.
International
has
equipped ten
Forrestal

and

air

TACAN

with

navigation)

and

is

supplying the Army Signal Corps
with held telephones and similar
equipment.
While

nearly two-thirds of curproduction is for vari-

Government

ous

departments,

pansion,
and preliminary plans
for 1957 call for a total of nearly

$55 million.

IT&T s financial position has
improved
considerably
in
the
postwar decade, with system net
working
capitai. reaching
$200
mllUon
d

the

at

with

earlier

end

1955

of

$60 million

it does not appear

Canal situation

subsidiaries

trol

will have any im-

adverse

ings.

con-

million.

that the Suez

effect on earnRemittances from foreign

portant

future civilian

Even the

com-

decade

a

Parent company debt has

much of this work is adaptable to
use.

new

near
co.,
t„
iq^r
ban Fiancisco.
In 1956, IT&T
spent $40 million on plant ex-

been reduced to about $35

U. S.

rent

have

been

steadily

equipment for. guided missiles, and countermeasure systems,
involve methods of transmission,

ceived

reception,

Everywhere in

the world system

operations

currently

quently

and
be

can

that

control

modified

ire-

for

ci-

viiian use; an example is the analog-to-digital converter so valu-

able in the automation of civilian
industry. The military TACAN
system of shoit-iange navigation
f°r aircraft developed by IT&T's
U. S.
Navy

the U. S.
is now a

laboratories for
and Air Force

part of the VORTAC system

this country.

navigation

'

Regarding guided missiles President
Our

„ood__how

tell

to

l

in

stated:

recently

Leavey
record

this

good)

it

field

is very

js impossible

for security reasons,
gay that both our Fed_

you

cgn

Electronics

missiles

City

All

the Cuban Government of a new
rate structure; there is a heavy
backlog
of
demand
for
new

engaged

Inc., has been formed with offices

here.

gram still awaits the approval by

other

in

heavily
the elec-

Company are

producing

tronic brains that make our guided

Alexander Co. Formed

is

facturing companies in Sweden,
France, Australia and Japan. It

in

re-

it

substantial

has

erai Laboratories and Farnsworth
Jan.

than

outside the

world

Curtain.

firm.

On

greater

tern companies are licensed under
Western Electric patents. Facili-

isfactory, except for telephone and
radio operations in Puerto Rico,
Peru and Brazil. In Cuba, a $50
million 4-year construction pro-

every

in

.

Milton

George R. Galleher passed away
Jan. 30 at the age of 42. Mr. Galle¬

Manager cf the Washing¬
ton, D. C., cf/ice of Bache & Co.

Abrahams

Street,

members

Winferd

with Bache & Co.,
National City East Sixth Building.

States

for commercial aircraft

S. Abrahams Admits

Staff

now

United

country in
jr0n

vital

delphia.

ISpte'n! to The Financial Chronicle)

CLEVELAND, Ohio

was

have

of

the

At

earnings

eign countries, and with established sales companies and
agency
outlets in practically

Lionel

—

D.

tired

to

electronics,

United

the

S.

IT&T wholly owns or controls
manufacturing subsidiaries or
divisions, with 69 principal plants

-(tactical

Isakson Asst. V.-P.
PHILADELPHIA, Pa.

has

U.

D. S. cam.rs, including tne Sara-

Lionel Edie Elects

Philadelphia,
Pa.;
Industries, Inc., Sinking

Springs, Pa.; National Alfalfa De¬
hydrating
&
Milling Company,
Lamar, Colo.; Arden Corporation,

and

in

as

communica— South America

3Q

the,fund's.national distrib-

Inc.,

Hofmann

agency of

right of the Prov¬
Quebec.
It was created

in

saling phases of the mutual fund

of

1975.

in

to the

came

the

Assistant

Philadelphia, Pa.

the

or

of

Degree

with him considerable

been

board of

Cork

board.

Badbe Adds

ranging

Master's

his

organization

re¬

by Act of Legislature of the Prov¬
ince in

r

Crown

obtained

1, 1967 to 100%
1,

of

Mr. Drummond is

borrowings.

The Commission is
the

complete

debentures will be

new

deemable

approxi¬

lo

School

company.

Company, Inc., to fill the vacancy
caused
by
the
resignation
of

30,

000,000

Drummond

memb:

a

directors

Leonard

Between

Graduate

Business Administration where he

Assistant

deben¬

tures

fiscal officer with the

a

Army Service Forces. Mr. Casey
is
a
graduate of Boston Latin
School, Harvard University and

election

Drummond Director

Com¬

the

as

was

to

by the
be

and

Philadelphia.
At
also connected
with the Securities and Exchange
Commission as senior public utilities analyst, and with the Federal
Deposit Insurance Corporation as
principal security liquidating analyst. During World War II, he

to

income

net

in

widespread

States, the potential for expansion
in the telephone field there is

curencies, there has been
operations, with little expansion in recent years
most of the balance from the Britalthough subsidiaries are operatish Commonwealth and Western
ing more or less profitably. Some
Europe.
Expansion may now be necessary

toga

first

and

is guaranteed

as

the

uncondition¬

Feb.

as

1954.

the Pacific.

is

$69,430,000
$23,784,000
compared
with
total
operating
revenues
of
$69,161,000 and net
income of $25,281,000 for the full

1,
1977, at
to yield 4.47%. The issue,

98.75%

ally

due

fund

in

properties of the Commission.

mission

Q,

the

analyst

Dyrmg World War II,. he ^served
Maune Alr
w"

and

debentures,

joined

,

AT

.

throughout the Province, and the

Commission

4%%

.

Province

publicly yesterday (Feb. 6) $50,000,000
Quebec " Hydro-Electric
series

acquire, sell, transmit
electricity and gas

distribute

and

Betz, Jr.

formerly associated with
leading financial houses

time, he

holds

generate,

T

security

Boston

one

is

Quebes Hydro-Electric

T.

1936.

resulting in an estimated 1%
increase above the similar period of 1956, store executives
reported.
ment

11T

Casey

was

in

Retail trade volume in New York City the past week suffered
from

' Frank

Casey

j

several

preceding week
moderately exceeded that of the comparable £956 period.
Department store sales on a country-wide basis as taken

and

a

baked

A.

.

Mr.

'

and women's

ances

of

,

Moderate
of

purchases

Warren

senior

>

equipment

from

are

year.

a

enterprise

A substantial part of net

.

noticeable decline in the buying of dairy
products, poultry, and canned goods last week, ijhere was a sub¬

gain

tions

President, of the $47 million Delaware
Fund> W. Linton Nelson,
President, has announced.

linen$!dnd floor
coverings, while the call for draperies and slipcovers' decreased
somewhat.
/,4
:I< 1 *'•-

foods.

negligible earnings fac(despite
the
$100
million
a

luring

Sales promotions helped maintain
high volume in

stantial

million in 1955. Tel-

investment) and the System is
virtually a world-wide manufac-

slight decrease in purchases of lamps,; television sets,
refrigerators and automatic laundry equipment occurred.
Shop¬
pers stepped-up their buying of upholstered
chairs, bedding, and

frozen

are

tor

+3; East

sets, and sales moderately exceeded those of last

of $448

sales

to

Grocers reported

with

ephone. operations in Latin Amer-

A

room

companies,

in the period ended
below to 3% higher than

-f-5 and Pacific Coast 4-3 to
-f-7%.' •
Sales of men's apparel declined last
week, but volume in
women's apparel was close to the level of the
preceding week and
fractionally above that of the similar 1956 peripd. While retail
inventories of women's apparel fell
appreciably the past week,.*
stocks slightly exceeded those of a
year ago.

dining

International Telephone & Telegraph
Corp.
International Telephone & Telegraph is one of the largest of the

Inc.
Regional estimates varied from the comparable 1956 levels
by the
following percentages: New England anck Middle Atlantic —2 to
+2; East North Central, West South Central and Mountain 0 to
South

By OWEN ELY

Casey has been appointed In¬

trade

from 1%

estimates

slackened

cars

level.

Utility Securities

Warren

—

■

for

remained higher than the similar

on

Public

By Delaware Fund

1956

work.

And

as

I

have

improving

in

black.
0f

1956 IT&T

income

some

country

in

and

which
are

Orders

on

from

it

re-

every

operated,
in

the

hand at the end

1956 could considerably exceed

the $431
«it&T

million backlog of 1955.

is

fortunate

in

being part

industry that is equally
vital in war and in peace," General Leavey has stated.
Consolidated
shares
earnings
have been somewhat irregular because
of occasional writeoffs, but
have increased from $2.38 in 1950
aj-j

in 1955 and an estimated
$3.75 this year. Parent company
which are affected by
exchange
difficulties,
increased
from 63c in 1950 to $2.06 in 1955
and an estimated $2.35 in 1956.
Selling recently at 30 and paying
$1.80, the stock yields 6%.
It is
to $3.21

earnings,

selling at about eight times estimated system earnings for 1956
and less than 13 times estimated

already pointed out, we are stead- parent company net.
>'y £'P
new fhTh^t w<'. haoe
Fein. I
W Hoefinehoff
plications lor much that we have
Joins L. W. rioeringnoir
r

leai'ned in this field"

(special to the financial chronicle)

CINCINNATI, Ohio -Albert *
major factor in supplying tele- Lehmeyer has
th^ s^tf
phone and other communication L. W. Hoefinghoff & company,
In the foreign field, IT&T is

equipment

for

national

munication networks.
use

a

telecom-

Because the

of telephones abroad is not so

Inc->
membeis of the Cincinnat

Exchange.

24

ffi9*n

'

36

/ (700)

*

'The Commercial and Financial Chronicle

Continued, from page 7

Warner, Miller Named

Railroad Securities

NASD Dist. Chairmen

;

has

Announcement

of

McKEEVER

By GERALD D.

Missouri Pacific Class

the

election

Elbridge

S.

must

After
last

in

start

false

a

May

of

which brought it up to
the all-time high of 47 Yt, Missouri
year

class

Pacific
march

"A"

again.

stock

three

up

dence

points,

of

the

on

Since the beginning

this year this stock

of

is

has picked

evi¬

with

but

considered

more

accu¬

mulation this

time, and which the
flashy and short-lived

previous

seemed to have lacked.

move

recent

of this

strength
based

been

fillment

of

has

stock

partial

only

on

The

ful¬

driven to choose

MOP

I believe that

Also,

Ohio common, on
share was paid

$10.75

estimated

available

the

Baltimore
which $2.50
in 1956 out

is

net

selling

has

been

for

ate

&
of

50

virtue of

the

a

the

Another

in

times.

last year and

1956.

would

which,

early

among

time that

some

around

be

this

son

fore¬

made

Instead, it has been evi¬

dent for

for

optimistic
been

it

$9

1956

net

share

per

stock,

and for this rea¬
quite
clear
that i its
has not been due to a

is

strength

sudden

mere

awakening on the
of the road's November

strength

report showing $8.50 per share
the class "A" for the first 11

on

months of 1956.

is

It

had

also

all

at

not

that

the

become

the fact that MOP "A"
at

1956

There

are

cases

market

of

aware

selling
times the esti¬

only about 4!/2

mated

was

share

per

earnings.

stocks

in

the

prices

question

of

down

the

timore

to

an

is found in Bal¬

course,

Ohio

&

which,

common

like MOP "A" has
in

balance, of met- after provision
capital fund and sinking funds
provided by indentures set up in
or

properly

more

of the B & 0,sby debt

case

adjustment terms.
Stocks
basis

dividend

of

sell

ther

MOP

consideration

instance

of

This

is

"A"

is

If

there

something

for

be

deducted

almost

$26

charge.

in

of

million

of

than

total

the

per

1956

limit

the

on

that

share, on the basis of
result, and this sets the
be

can

amount

paid

of

dividend

April

on

1

of

the current year. In common
with
other "reorganization" roads
gen¬

revenues.

based

on

preceding
The
MOP

"A"

on

per

share

uted

last

available earnings for
were

the

strength

$2.75

that

April
much
this

growing opin¬

declaration

distribution

as

is

share,

April 1.
The current
in this stock is believed
the

1

per

strength of this, a $2
dividend was distrib¬

to be related to the

ion

any year

available earnings of

years.

1955

and

$3

for

may

share.

per

somewhat

mains to be

next

be

A

as

Whether

optimistic

seen.

taken
of the
-

$2

re¬

$3 per share

per

available, where¬
share

distributed

April amounted to
1955

the

available

current

thing less than $3

price

of

per

this

fact that Southern

$3

per

has

largely

due,
of

of
the

to

look

Such

in the

in

other

direc¬

improvement in
step

a

recent

construction

has

been

authorization
of

a

modern.. "hump"
Kansas City.

mil¬

$10
yard

at

lis

on

Allen, a partner in Allen
Company, has been elected

mittee

of

surance

of

return

the

The

Executive

Com¬

American Life

In¬

Mr.

the

$2.75.
of

about

share,

but

is

share. Good
in

seen

the

Pacific, paying
with




a

100%

than

Past

a

Club

been with

in

35

and

1921

is

now

the

survival

only

can

-immense

serving

in

Resident

Manager

of

NYSE Member, Hies
Robert
New

give

Exchange firm
of Gude, Winmill & Co., 1 Wall
Street, N. Y. City, died in Roosevelt
Hospital after
operation
73

at

mill,

who

at

time

maintained
stable of

horses
V

o

a

Al¬

Last

Trust

and

&

Co.

in

Gude,

1907

Gude, Winmill

with

brother

Mr.

of

Edward

the

well-

outdoor " advertising
Co.
of

Wall

chief

his

firm

directorships in
corporations,

Street

interest

for

years

in his stable of

the

cen¬

race

Vice-Presidency

Winmill

was

of

owner

at

one

the

time

the

steeplechase

every

And

;

to

technical

and

We know

*

in

leadership

:

?

'>

«'%

monolith

behind

admit

that the vaunted

now

A

clapped

js -only .; a'

which

there

;

are

Yugoslav

who

used

30, at

in

Among

the

look into

a

lines

their

the

the

collapse

weight of its economic

its

politcal

follies

population.

I

attains its

and

discon-

The

Soviet

"will fall
satellite after another
went

on,

liberation."

own

hardly blame those who
was too optimistic and,

thought I
of

20

next

will

the pressures of a restive,

I could

I

professed to

"within

Communism
the

of

years

industry,

things I

that

was

could not

course,

Communist!
—the

the

revolts

and

survived

by his

three

known

in

Wall

14

the

And

vast

that

given

whom
been

Ralph

C.

Adams

City,

passed

a

long

Runyon,
&

Peck,

away

illness.

these

humanity,
despots have

those
able

to

That
a

is

mood

in

why

count.

the

we

begin

1957

in

heightened Confidence

of

ultimate

crumbling of

Communist structure. There

the

seems

to
be substantial
support, after
all, for the belief that time is on

side.

our

Yet

fatalistic
stake

We

our-destiny#
We

processes,;

circumstances

automatic

bay the

under

it

out

not

must

upon

can

time—and

sary

rule

must

we

inertia.

neces¬

the

means

best

long

a

pull—only by pushing boldly and
energetically the political-psycho¬
logical advantages that are open¬
ing up.
I
:
'
•

This presupposes a sturdy shield

Poland

the

demanding inde¬
the
people
of

were

and

close to achieving

came

the

of these events,

that

recalling

ago,

fully

such

I

it

six

Secretary

present

our

envisioned

State

world, not in

possible

believe

"War

on

or

Dulles wrote:

Dictator ships
the

on

usually present

a

exterior.
They seem,
outside, to be hard, glitter¬

;

nor

we

knowingly ignite

nobody wants. Yet

war

miscalculation.
wars

great

formidable

will

'

life.

our

neither

the disaster may come by accidept
local

book

a -

that

the Soviets
the world

or

in

but in virtually

one

department of

every

light

worth

maintenance of adequate strength
involves a race against the Soviet

The

many

The Communists, now

using

are

embers

smoldering
inflammable

the

as

bellows

pf

in

are

a

areas.

always,
of their

propaganda to blow up little fires

into
big ones; to provoke civil
Within, they
They are conflicts and Guerrilla warfare.
every
such episode carries
like unto whited sepulchers. which And
indeed appear beautiful outward, the threat of an unplanned world
*
but are within, fidl of dead men's conflagration.
i!
bones and of all uncleanness"
Keep Well Armed
V
Such
predictions derive from

ing and irresistible.
are

full

of

rottenness.

..

faith

our

that

elementary

dignity

man's

freedom

cannot

be

tained by terror.

rebellion
heroic

in

hunger for
human

and

forever

con¬

The spontaneous

Hungary

proportions

and

its

thrilling

are

reaffirmations of the human spirit.

can

look

son

to

power

Communist

of

forward

the

power,

with

good

disintegration

from

of

we
rea¬

that

vitality

and

tinually

"at the

quires
cf

adequate

air,

nology

a

on

sea,

and in the

efforts
and

science

life

has

acquired

dimensions

defiance

of

tyrants

alas,

destruction

—

of

The Hungarian
guided

power

through

to

tech¬

tre-

power—

surrendered.

have

been

In

Poland

banked

for

for

mass

nuclear

missiles, artificial

satellites and other

fires

the

in

energy,

the

and

well-balanced

Facade

heady thing.
not

re¬

amassing

I

including,
Successful

the

which they depend.

Modern
mendou.s

is

con¬

maximum

race

on

it

This

weapons

of

land,

the

but

win the

ready."

merely

not

on

maintain

to

maintenance
forces

within.
A

.

Our first and irreducible duty,
therefore, is to maintain military

people have been crushed but they

with

the Soviet

behind

such

Street circles

Ralph C. Runyon

of
the

peasant

have

affiliated with Rem¬
mele-Johannes
&
Co.,
118
East

workers

brain—led

most restive in

itself.

the-

upon

myself have

was

ment.

the

and

and

against the puppet regimes

are

Union

is

the

despots counted most

youth

hand

;.

whom

upon

forecast would of free-world military and eco¬
strong support so nomic strength. That is indispen¬
soon
by subsequent events. Yet; sable survival insurance, whatever
only a few weeks later the people else we do or fail to do. And the

guessed

advent
is

'for

significance.

Precisely those

on

crystal ball.

a

prison

No Automatic Process

banquet

a

Djilas, into

these words but that only under-

never

Today, for the first time since the

Winmill

daughters
and
grandchildren.
Mr. Winmill
best

vig¬

as

world.

our

radio

"

Robert C; WinmiU

he

formed the firm of

now

Westheimer and Company.

Sept.

ventured

'

J.

Broadway. He was previously Wil¬
mington, Ohio representative for

in

Peace," Mr.

his friendly personality, his
witticisms, and genial tempera¬

(.Special to The Financial Chron ci.e)

GRANVILLE, Ohio —Frank

Soviet orbit

Moscow exploits

as

long

a

palpable
social

of'lmy 50

for

With Remmele-Johannes

armies

Russia

after-

mill,

Surety and is a
recognized specialist on insurance.

place, start¬

been :foreecL

must be drawn.

developments. * Referring to Soviet

Co.

wards"

tech¬

and

service

of

the

in

the

the anniversary

years

widow, Mrs. Viola Townsend Win¬

Trus¬

exploit

dislocation

is

banking

Mr.

American

Casey is

orously

In

prospects.
Alien

has

press

seems

similar

liberation.

started

n,

his

do, it

apply

economic

Hungary

his

renton,
.,
planta-

a

t i

and

circumstances

should

strains in the

never

rjaroid

to

political,

War

American

Mr.

time—is

pendence

a

race¬

at

crisis

one

not return for

may

of

Mr. Win¬

age.

one

ing

Life,

it

and

be

of

years

champion

director

chain

conflicts.

against
the
Communist
Our opportunity today—

sphere.

Stock

"Surf,"
and
he
was
happier than when he was
talking about his horses and their

a

reaction;-

the

was

student

tensions; strains and irrepressible

home

at

these

to

apart as one

Campbell Winmill of the

York

proud

In

niques

both

we

is

me,

empire,"

addition to be¬

companies.

ing

advantage,, Communist

badgered by

,In

least

to

tended

Mr.

both

the

,

fallacies,

Vibrant Horseman and

horses,
of the
United Hunts Racing Association.

E.

and

another

under

and

by

first

essence

years

tered

McKell, Presi¬

the
took

facade,

is f the

abroad.

see

Outside

was

that

Prague

Czecho¬

"simple"

selves

Blyth

Portland office.

Surety Com¬

of

the willingness of
to use it to safe¬

to

as

of

joining

years,

He

his

of

is

Bond

various capacities since that time.

several

dent

service

of O. J. Gude &

of

moment

quiescent, it

demonstrations

—Predictions Coining True?

Miller has

firm

American

William

He

the

Miller

active

I.

War

more

pany
of New
York, recently
organized af-

announced

from

of

of

became

Hayden,

cow's

,

for

Ca

Com¬

it

He

Cleveland.

known

pany,

with

World

in

nue

Harold

Chairman

B.

graduate

a

University.

career

Harold Allen Director
&

John

old Fifth Ave¬

only 72%
of

43, MOP "A" is rather fully dis¬
counting a distribution of any¬
evidence

district

performance

lion

is

At

neither

area,

effects

the

for further

of

of the 1956

the

its

years,

to

efficiency.

len

of

nor

outstanding

have

tee

last

growth

is

Warner

associated

ad¬

work

Fully dieselized since
the. Missouri Pacific
will

payment would represent
roughly
the

Mr.

the^othfer

can

succeeds

irrothe

feither
by revenue
through increased ef¬
While the Missouri Pa¬

road

85%
as

On

the

seems

increasing unrest among youth—
the youth* from which tomorrow's

Moscow's Strategy

after

in¬

meager

2%

1

the

or

recent

Warner

Cornell

re¬

for

No.

Joyce,
John
B.
Joyce
&
Co.,
Columbus, Ohio, and Mr. Miller
succeeds
A1
Hughbanks,
Hughbanks, Inc., Seattle, Wash.
A
native
of
Unionville, Ohio,

increased

as a

Mr.

v

vantageously, and with multiplied
effect if operating income shcAild
be

District Committee

(Oregon, Idaho, Washington),

filiate

erally, dividends paid in
are

the
than

hand, this leverage

remain available for dividends on
MOP "A," or a little less
than

$3.50

from
Jess

year's

tions

interest

is, only about 25%
earnings before charges

sizable

a

allowance

of

now

to

That

be

ways.

pecially since the gain in
1956
earnings was achieved more from
the trimming off the "fat" in the

1955,

this

addition

available

gross

drought.

some $11
million aggregate
capital fund and sinking fund

must

less

of

man

President

should

course,

determining

earnings

share but with
1956

in

hidden from the world.

for

slovakia

Soviet Russia itself, the controlled

temptation.

What

Though

of
Mos¬ to
be
Tito's
right-hand
man,
strategy in the Milovan Djilas,;.has written; ''The
James
F.
Miller, Vice-President Cold War? It is to
keep the great- revolution in Hungary means the
and Director, Blyth & Co., Port¬
democratic powers constantly off
beginning of the end of Commu¬
land, Oregon, was elected Chair¬ balance,
j
divided, among them¬ nism generally "-Tito promptly

an

stock
of

Pacific

might not be a very
period for MOP "A," es¬

happy

this

which, for

at

In

net.

available

Southern

latter

it

regarded

of the $9 per share
_

1956

the

cific operates in what is generally

measured

income

estimated

estimated

in

leverage works both

shown

1956,

is

45

considerable invest¬

per

2%

in

less than 40%

that
of

revenues

by the aforementioned "available"
net

at

quality while MOP "A," on
the other hand, is one of the most
highly leveraged stocks in the rail
group
with about $160 of gross

portion

of

is

stock

a

ficiency.

the

on

yields,

present
The potential in the

potential.

or

Pacific

share, all of which is
theoretically "available." A fur¬

growth

generally

of

Southern

crease

the

ip the

is

per

year

are

for

case

net

maintenance

equity only

an.

"available" earnings, which

reoganization,

46

selling at about 7.% times its 1956

cession

unconventionally low earnings
multiple. The most notable in¬
stance, of

at

common

for dividends.

comparable

numerous

hold

O

than

as with MOP "A,"
limitations
aside
from

dividend

&

mated available of $7.25 per share
while

where,

earnings

B

selling at about 6Y4 times its esti¬

ment

once

Soviet
at

war

we

enemy

and

that

com¬

cannot be

least

world

its

up.

the

on

is

free

guard

year-end extra.

■'

•

,

do, and probably
Certainly unilateral
of
force,.; raising

as

questions

the

on

world

a

more.

cents quarterly for 1956, it is
quite conceivable that at least
$3 total may be paid for 1957 by

other
things, had suggested earnings of
about $11 per share for MOP "A"

the
had

lot

desper¬

a

stand

have every right

we

renunciation

consideration
bearing
Elbridge S. Warner
James F. Miller
price situation of MOP "A"
is the multiple of its price rep-, District Committee No. 10
(Ohio,
resented
by available
earnings, Kentucky) of the National Asso¬
which, at 43, would be over 12 ciation" of
Securities
Dealers.

that

casts

fears

much

as

a

at

as

to

policy
premise

mon-sense

O

&

war

fails

formulate

Russia

While
B

established

expedient

to

per

$7.25

46.

at

regular dividend

common

and

j '.

gently lest Moscow be

purr

margin of safety, is selling at 45,
or
only two points higher than
"A."

^

Of World Commanism

Warner, partner, Hayden, Miller
Co., Cleveland, as Chairman of

&

"A" Stock

Thursday, February 7, 1957

.

Facias the Facts

made

been

of

.

forces

now

in

gestation in research laboratories.

associated
a

New

Jan.

31

York

after

time, but they continue to burst

into

flame.

evidences-

In
of

East

Germany

incipient

the

rebellion

A

of

new

dynamism is at the heart

science.

vances

that

Revolutionary
would

have

.ad¬

required

Number

Volume 185

decades

the

in

5610

past

.

.

The Commercial p.nd Financial Chronicle

.

today

are

brought to fruition in a.few years.

propitious for the West to take

are

Basic Research

Eximbank Operations in

the initiative, with all the political
and

Bo Not Neglect

(701)

psychological -forces

at

its

Authorizations to

command and others that must be

That dynamism manifests

itself
in a fast-moving cycle of discov¬
ery^ invention and obsolescence,
and we cannot afford to lag be¬
hind.
It is njo longer enough to

mark

without delay.
Precisely
because Communism has lost much

a

J

_

"

"We

should?

forget that
enemies can

never

what we'can do, our
do.

Let

.

with illusions of Russian sciem
tific sterility. We. do enjoy sur
periority in applied science and
productivity, ; biit the
Russians
have always been strong in theo¬
retical research.

Wondered

This is not tp be

The

at.

creative

same

rind, imaginative faculties evident
in the Russian genius for music
literature play vital roles in
groundwork of basic science.

and

the

And

student of the history

every

Of science

knows that

of

inch

an

progress in basic

knowledge clears
the road for miles of progress in
practical technology.
•

-With rdspect to another crucis»

-

race we are

alert

more

few -years

.we-were -a

(2)

than

now

back;; This

to the

up

ample reason to
believe that the Soviets hre gainare

so

.much "scrap

weapons

metal-without

adequate and iully competent per¬
sonnel to operate them. Our great
?
research complex can maintain, its

vitality'and expand. only If there
is

steady inflow of-new brains

a

and 1 talents

Indeed, the higher-

a

nation's stage of technical devel.♦

i

opment,

the

need for

highly qualified

is

therefore,

tion

to

achieve victory.

develop and
of

a

by fighting the
firm determinaIt must

use strategy capable
what i have called

meeting

.

Moscow's SIMPLE

its

men.

■

we

to

have

now

a

,

of

victory in the cold, struggle. If the
are encouraged to believe that

they

risk aggressive
immunity from

can

with

adventures

we

ardently wish to

so

prevent

would be greatly increased.

<4>

promises.
It had cornered
market, so to speak on' idealistic
words and appeals which it was
obscenely violating in practice.
Today, through its own miscon¬
duct, Communism stands naked in
its primitive brutality. The great
disillusionment
begun with the

l!

Asia; $69,- the

fiiinnpp TT

S

»Vnrvrfc

+r>

are

that

no

less

criminal.
Millions

.

decent

of

who

women

men

formerly failed to

and
see

the Soviet reality through the fog
:t>f claims and plain lies, have had

their eyes opened.

Soviet preten¬

-

.

ized

-

larger

total

for

amount
the sum

the

last

point His Holiness
•Pope Pius XII spoke cleary and

from

the

*'methods
when

heart

in

his

recent

which *rely
on
tanks,
latter noisily crash

TtWfl ebalTeritfp

hpiiiUhwiflWflv

t+Vi^

.

was

au-

can

generation

so

well represented

here tonight.

;

*

•
,

It is not strange that young men

Berlin

Poznan

or

or

Buda¬

as

country

foUowsf

inside

the

Soviet

re¬

in Latin America
for $79,415,000; and to one borr0wer in one Country in Europe

The

Pontiff

voiced

the

of the .great majority

,

a

.. -

borrowers in

18

To

a

springtime of moral

•

-v/T;;

.

6 countries

total Of $189,492,000;

v

Loans

"

\

■

f-1

.

-

.

(Millions)

-

$8,362

Authorised

Participations

and

Cancellations

;

1,532

Disbursements

5,277

Itepayments Received

2,641

Loans

—

2,636

outstanding

Authorisations

not

yet

Disbursed

1,552

Continued from page lo

affirmation of principle,

idealistic dedication.
If this

be

can

nism— where

so

under Commu¬

truth

outlawed

is

WiU Business Turn Down in
The Critical Yeai of 1957?

son—it is infinitely more

ling in

our

compel¬
blessed land of free-

ever

in modern times there

a
generation summoned to
high responsibility, it is the one
to which you younger men belong.
In effect you are called upon to
preserve freedom and decency on
was

earth

this
from

long
night.

a

tarian
You

to

and

and

godless

totali-

complain that,

That purpose has

built into your lives by the

finds you
threshold of leadership.
period

that

Such

time

the

is

big

if

one

tfce

trjes t0 stay strictly

first,

and

been

of

our

enough

business stability differ among themselves as

control

to

the

to

time

has

the

when

brakes

Some

T11

become

Fr<id

r rea

are

arguing

that

rigfrtt

as of the beginning of 1957,
the brakes ought" to be eased off
a bit on the theory that the necesnow,

has

F

& World

Adams

Aaams

with

connected

we

Report" for Dec. 21.

the direction

which

At the sam,e time ot.hers ^f t,he thinking takes

general economic school—
{or instance, William McChesney
jgame

on

military

this does
"tion of

defeats.

But again,

our

national

Hurint*

10^7

mnv

credit control during 1957 may

Dillon, Union Securities

not. justify any relaxa-

our

Cold War efforts.

the contrary; conditions at

On

&
ono

bers

go"t*

of

present change.




La

the

caPe Street, mem-

Midwest

Stock
-

may-

be

assessed as

(1) Government Spending. Govspending will bo up in
Outlays for national secu¬
rity will be greater by approxi¬
mately $2 billion,, and increased
foreign aid also is on the cards;
State and local expenditures, al¬
ready running substantially high¬
er than in
1955, will continue' tot;
increase, especially as the Fed¬
erally aided road-building pro¬
ernment
1957.

gets under way.
Part of
higher prospective governrnent expenditures, of course, will
represent higher price tags on the
goods and services which the government buys. Total government
spending on the whole will probthese

ably rise by about 7%.
(2)
CapitaI
Goods
Business
spending for plant and equipment

at the end
*
annual

an

f 1956
rate

was

running at

»
of well

over

$37

billion,

more than $5 billion high¬
than a year earlier.
For the

er

year 1956 as a whole the total is
something over $35 billion. Projection of business plans for plant
and equipment spending indicates
a

small increase to

an

annual rate

pf $38 billion in the first quarter

Gf 1957^ which would be some 16%
above the first quarter of 1956.
For the year 1957 as a whole, the
projected increase, according to
the well-known McGraw-Hill sur-

Ex-

ing 1957.

In addition to this cri..

...

.

^

ficult to visualize

a

turndown in

^

ticsl question of timing there a
also, some doubts expressed here

n christian

1958.

Science

higher price tags, and part of it is

these matters work originally planned for 1956

jy^j-tin, Jr., the head of the Fed- have a considerable effect on the
mankind, including most, of
& Co., 135 South La Salle Street. erai Reserve—are arguing equally business outlook for this year.
those who heretofore regarded
He
was
formerly
with
Swift, strongly that it would be a great
^ one extreme, if an uncomMoscow as the. fountainhead of
Henke & Co., and Hornblower & mistake
to
loosen
creaii
credit until
uruu
anti-colonial inspiration.
promising and possibly somewhat
Weeks.
business
capital expenditures have
.
nntirv nf -jo-iH Pnntroi
Yet, in the contest for the mind
flattened and savings have been doctrinaire policy of rigid control
of. man the enemy has sustained
With Webber-Simpson
mcreased. somewhat more, even if rs maintained with perhaps one
psychological defeats which, in
(Special to .The Financial Chronicle)
that should mean an increase in or more additional advances in
;their long term effects, may be
CHICAGO, I1L —John Pini is unemployment at some time dur- the rediscount rate, it is not difmore
disruptive than diplomatic
'or

-

spending

follows;

ciates,

(Special to The Financial Chronicle)

CHICAGO, ill.

of

mittee, and Murray Shields, senior wage inflation. Obviously that is Vey, is approximately 11%, indipartner of Mackay-Shields Asso- a question that will not be an- cating a total of $40 billion. Part
as reported in "U. S. News swered in any one year, and yet of this figure, of course, represents*

it free.

-

Eastman

preserve

to such

Joins Eastman Dillon

Jr

more

on

challenge

urgent

and wish to keep

rmrArn

or

should be put on or Relaxed.

never

can

mankind

save

ent outlook for these several areas

gram

and conscience is treated as trea¬

dom. If

bhsinercTr inventor^-

portant.-In'lniyf opirii6ri-lthe; pres-f

Amount''

,

...

.

soend-

•

total,, of

$557,235,000;
in Asia for

•'l<SiESiSay^business

summarized
WPrfi Summatized by Mr; tourse by all odds the most imbv Mr: course bv all^^ odds the riiost* im-

.

•

of soeridine in .1957. innludinff

■

Union

reported from the universities.

courage,

borderSj sowing death in or¬
der to force civilian peoples into
a
pattern of life they .explicitly

of

.

'1958;! were

"

American,, countries for

l.-

;

Waugh as follows:

;■'^6-I32^borrowers ;iri 17 fLatin r".

the

It is no accident that
significant stirrings of

bellion

over

detest"

'

TheBank's operations in its 23 both private andjpublic; and (5)
years'history, from/1934 through Consumer spending, which, -is.'of

v

A

esrieciallv to the Younger Ameri-

these

sentiments

.■.

.

for. $2,500,000.

purpose.

On

'

...

borrowers for

tesque, and Moscow's

.

_*

rope,

two countries

beyond the personal sphere of ambition and career, your life has no

of prin¬
cipled opposition to colonialism
has become £ transparent fraud.

■

$79,531,000; from Asia, $56,- course, is necessary, namely, that
new credits, when
was 750,000; from Africa, $11,618,000; increasingly
precarious one that
$1,210^950,000.
from
Oceania,
$1,461,000;
and deterioration in the international
situation will not be accelerated
The Bank authorized 10 loans to from others, $25,000
/
governments to finance exports of ' The Bank made allocations in in 1957.
:
U« S. industrial products,' com— 1956 on credits
hi
previously authormodities, and technical services, ized to 22 borrowers in seven
Spending Outlook
for .a .total sum. of $855,735,000, countries
totaling $133,471,000; r
Against this general backgrounci
Th^largest credit in this category These allocations; by areas,, were
a

tolql of 160 credits

sions of idealism have become gro¬
pose

.

.

York): "In the longer run can
simultaneously finance ^full
employment prosperity, technological revolution (with all the
capital expansion required), and

proofs

recent

,-i

Schoolfor Social Research in*New
The Bank, received; $266,286,000 the availability of funds is likely
York City. Statistics illustrating loan repayments during 1 £56, plus to become somewhat greater. ."
the, Sank,'s activities during 1956, $84,710,000 in interest arid certain : This last: statement is more "in
cited/by>Mr. Waugh, included minor fees, for total, collections of
nature of an -assumption than
the following:
,
• $350,996,000 in the calendar year, of a forecast, bqt it is an assump.v'^imbahjc.wthorized'. 193 credits * Loan repayments from borrow- tion that is necessary as a'basis
to bqrrowers in; 38 countries for a ers, public and private, by areas for any estimates ;of business

been expressed recently by
moderate conservatives as
Christmas message. "There is no bring forth your very best efforts. Elliott Bell, editor and publisher
longer any rgorrt for doubt," he de¬ It is a call to courage and will be of "Business Week," testifying beclared, "concerning the aims and' answered by all who love America fore Representative Patman's com-

by

successors

being

two extremes will be followed

9Y^£$e«)s,. trade. Mr. Waugh ad- ports to Europe, and $13,080,000 to probably will not decrease nor on
pressed ;?a.^Business.-Executive finance U. S. exports to Oceania, the.'oth^r.'' .hand \yiU "it {increase,
Wnchepn meeting of The New ell under credit authorizations. . . greatly, arid as the year draws on

critical sary restraint has already been
the accomplished and a slowdown is
currently under way. This view

Stalin's

is

the.

525 000 to fihance^U.S. exports to probably .leaning closer to' the
Smp^rt JBank, an. in- Latin America; $21,843,000 to fi-. Federal Reserve* point of view..
fSency of the U.* S: jance. ,IJ/ S.< exports to Africa; ^hari to the'Patman point of view^
Government, in supporting U. S. $16,836,000 to finance; Xrn ex- in other^words, the cost rif credit

tually is effective in achieving
stability. Thus Elliott Bell has
contended that there "will ultimately prove to be great dangers
in the attempt to stabilize our
economy
through
the
violent
alternations of dear money and
cheap money (which) we have
seen in recent years."2
Perhaps the underlying academic question adds up to this
(and this was the question recently debated by a group of leading economists meeting in New

deepened

crimes

over

S25.ft(Ml

discussing;the

and there as to whether the classic remedy of credit control ac-

heinous

that already

year a course somewhere between

within
conservative,

Stalin's

,

402,000 as S. exports to
follows: $112,118,000 to
finance U.

philosophy, there is a very difficult problem of timing. Adherents
to the basic necessity of credit

Kremlin's confessions of the dead

strains

The Bank made cash disburse- exist in the economy.
ments during 1956 totaling $233,My own guess is that

^n.vA.v€^poPs an<i .well - balanced \vitjh foreign government guaran-^V11
tee? lor a total of $174,711,000.,,,
technology and trained manpower.
A-

Youth is the

and
the

of the

some

We

surance.

most

slogans

activity might well be
.

$73,000.

indispensable^eaee in- t,°„the Um.ted Kl.ng?om to ,meet three countries in Asia tor a total

quality is

pest.

its

of business

.

ahead of the

are

in

borrower in Australia for

$350,000; and
accompanied by a substantial rise
To 2 borrowers in Canada for in prices arid an intensification of

^engine military superior- Was the>500,000,000 secured credit ^"follow^™-to-12"1l)or*rowers "in

its

but

loosened

are

enough to satisfy people such as
in Representative Patman and Walter Reuther, then a strong surge

.

Communists

pism in the past has been not in
deeds

borrowers in 2 countries

To 1

,

Hot War paralyze'our will to

a

opportunity

j .The great strength of Commu-

.

,

hand, if the reins

control

,

East

new

.

credit

strategy of Subyersiori,Infiltration, M^mpiilation,;
Penetration, Liquidation" and Exploitation.
<
! '
total sum of $1,156,607,000. Not were; a§
follows:
from Latin trends and magnitudes in 1957^
(3) We cannot affonj to 'let fear since 1946 has the Bank author- America, $116,901,000;: from Eu- One other assumption also, of

In this area,

colossal victories,

score

u

cE?

At. the same lime * there is, of and women, even children,. are $409^17^)00; ^ f
To 38 borrowers 'in if' councourse,; the all-important contest in the forefront of the struggle
for the minds of men on both sides against Communism, whether in tries
in
Europe for a total of
of the Iron Curtain.

On the Other

of

Africa for $140,000;

>

-

f

urgent

more

menace

Cold War with

is the race for trained manpower*

in which there is

Zing the lead! IThe ^latest

'

*

free world,

The

has nto real alternative but to face

American counteraction, the liketihood of the nuclear showdown

Need More Brains and'Talent

I

Kremlin.

console ourselves

not

us

fanatic Communists seeking world.
dominion remain enthroned in the

■„

m

.

■

research.,.1'>;

ment.

10-year high.

Operations of the Export-Import
of its appeal we should pursue
Bank of Washington to facilitate
resolutely the enlarged opportu¬
nities for disseminating the truth, exports from the United States to
think in terms of what we know. for reflecting our moral courage buyers throughout the world were
Always we must think in terms and for exercising our stateman- the most extensive during the calendar year 1956 of any year in the
of what we need to know. This ship.
past decade, Samuel C. Waugh,
Let me recapitulate:
is what the American Association
President of the Bank, said on
for the Advancement of Science
(1) The fateful, historical strug¬
meant when it warned, in a recent gle that has come to .be known as
5\xfA u
j
.,
'
Mr. Whugh made the statement
resolution,
against
the relative the Gold War has not been and
cnppph Hicmiccinff-flio rftlci a-F
neglect of
basic or theoretical cannot be called off as long as£ ?.speech
role of
a

some sectors,
particularly In busi-j
npss,spending for pl$njt apd equip¬

SharpRise...

thirty-eight countries totaling $1,156,607,000

created

37

Monitor,

Dec.

10,

carried over into 1957. This
forecast rate of increase ol n%
^ js
an

be noted, compares with
of 22%, or twice as

increase

much, in 1956 as opposed to 1955.

Thus, in any event, some slowdown is indicated; and if

a

rigor-

policy of credit control is perlisted in, the disparity between
the two years may be considerably
oug

greater than the projection indi-

cates'. J1?61?™6

spending m 1957 at the best will
Continued

on

page

33

38

The Commercial and Financial Chronicle

(702)

Continued

jrom

American

on

37

page

petroleum
situation

(c) Then comes the intriguing
considerable leveling
off from 1956; and the final total question, what will consumers do
with their income? How much of
for the
year,
if the element of
price
increase
is
disregarded, it will they save? The savings
might turn out to be not far above rate has risen considerably dur¬
ing the year 1956, now standing at
the 1956 figure,

inven¬

Inventory. Business
tories have been showing

1956, particularly manu¬

in

-vance

ad-

an

wholesale inven¬
tories, but the rate of increase re¬
cently has not been large. Retail
and

facturing

of disposable income,

$22

of

data

in terms

annually

billion

or

for the

fourth

quarter of
of

This increased rate

1956.

sav¬

increased,
other than automobile inventories

ing, of course, means that consum¬
er
spending recently has risen
somewhat less rapidly than dis¬
posable income. It seems doubt¬

dealers, which are
much lower today than they were

ful, however, whether the savings
rate will go above 8% and wheth¬

also

inventories

have

in the hands of

a

ago.
The over-all stockratio during recent months

er

year

sales

high¬

has been running somewhat

than

er

probability is that inventories will
continue
least

considerable part

a

the

but

the

at

at

1957,

of

to sales and

relationship

inventories

to

during

advance

to

correspond¬

the total annual amount of sav¬

ings in 1957 will exceed $23 bil¬
lion.

the cast last year. The

was

credit.

at

rapid

so

Thus

increased

accumulation

might

become

a

problem.
On

other

the

should
seems

likely,

hand,

weaken

would

their

while

inventories

now

businesses

many

down

draw

sales

if

than

more

existing

production

1957
not

consumer

likely to be bolstered by sub¬

ever,

of plus and

balance

minus

in

increases
the

As

consumer

goes

year

how¬

on,

is conceivable that this
situation might change and that
the

factors for 1957.

Hence it ap¬
the early part of
expenditures are

that for

pears

considered
our

as

nearly into balance.

debt.

in

million

$120

with a figure of $400
October, 1955. In other

in

stantial

less neutral

October

words, repayments and extensions
of new credit are coming more

ventory factor probably should be
more or

nearly

during |the
of
1955.

as

credit in

only

compared

slacked off. Thus the business in¬

as

recent

been

period

consumer

million

not

pace

a

corresponding

not
to

has

debt

ing points in

1956 probably will
change greatly. If prices were
rise
considerably,
inventory

During

months of 1956 the growth of con¬
sumer

it

of

rate

borrowing

consumer

o-

Building. The building

(4)
tor

a

the

of

for

economy

1957.

nonfarm

November

housing

in

starts

at the annual rate

were

1,060,000, and the total for the

first

11

months

1,055,000

was

as

with

compared

might again increase.
(e) The number of automobiles

slated

seems

moderately lower level in
In private construction the

new

of

sec¬

1,253,000 in the
1955, a drop of 16%.
higher costs the value

1957 will of

sold in
marked

bearing

of

ume

have

course

spending.' The

industry currently is predicting
6V2 million passenger cars. Be¬
of credit

cause

stringency, result¬

ing in larger down payments and

like period of

shorter

Because of

sion, and also because of the

figures, of course, do not show so
great
a
disparity.. The outlook
for residential building in 1957 is
for stabilization at not much
one

million

homes.

new

dential

in

1956

Nonresi-

ly higher than in
industrial
crease

able

construction

whole,

1955.

Although
may
in¬

probably

construction

be

can

moderately

on

listed

Consumer

(5)

ning

about

Gross
means

past
the

64%

no

and

billion

$17

of

the

for

the

rate for

something

What will

Personal
at

the

for

billion

rate

fourth

higher

earlier, probably

con¬

advance

about

5%

$332

quarter,

than

can

going
of

a

or

year

be expected
in

1957

as

compared with 1956. This estimate
is

based

on

continuing high

ployment, further
and

4%.

wage

Fiscal

parison is likely to
what

as

(b)

of

of

tax

come

there

is

no

no

more

prospect
in¬

with

changes in personal income.

The

total,

sumption
Product in

of

a

1957

of

the

on

Gross

as¬

National

approximately

$427 billion, may be only
under $300 billion.




These

on

have

the

policies, the dislocation
the

in

a

po¬

out¬

1957

Federal

are

trade involved

fiscal

of world

Suez

Canal

situation, and the probable trend
of price movements in

seems

tion in

taxes

is

barring
nomic

be

to

expected

a

little

possibility

I

indicated for

the

ment fiscal year.

ing fiscal
perhaps

eco¬

current

a

balance is
because of
expendi¬

possible small decline
revenues
if
business
profits

should continue to be squeezed.

Canal

Situation.

Though foreign trade is not a big
factor in the total picture of the
U. S. economy, we should never¬
theless recognize that substantial
dislocations may be caused by the
Suez
oil to

Canal

stoppage.

Exports of

Europe unquestionably will

rise, and

shipbuilding indus¬
try already is booming.
On the
other hand,
European countries
may not have the dollars to spend
our

of

rate

a

this

Of National Inv. Cos.

general

freight rates will surely work
a
higher price level, I do
not expect to see quite so rapid an

that

means

be

will

in

1957

in

wholesale

in

as

in

prices

On

1956.

other

the

hand, it is most unlikely that the
general price level will decrease.
The
retail
price index recently
stood at a new high of 117.8 on the
basis of

a

1947-1949

This is

100.

as

increase of nearly 2V2%

able

Though

ago.

year

increase

retail

in

as

prices

since

further

some

is prob¬

higher wage, mate¬

many

rial, and transportation costs are
passed along, I do not expect the
1957 advance in the cost of living
to

be

quite

great

so

the

as

1956

increase. This expectation is based
on the assumption that
the tight-

policy of the Federal Re¬

money

System has already achieved

serve

measurable

a

in the

of

degree

stability

price structure.

•

To summarize the general

outlook

ness

for

1957

at

of the

major flows

of spend¬

ing will be approximately as fol¬
lows:
government spending will
be
on
the
plus side;
business
spending for plant and equipment
will be up moderately, with a sub¬
stantially lower rate of increase
than

shown

was

spending

for

manifest

little

sharp

any

in

1956; business
inventories
will
change
(barring

building

will

vigorous

sector

than in

in

advance
be

slightly

a

the

of

than

possibly lagging behind the rise
in disposable income during the
year.

situation

fiscal

the

The Federal

does

not

appear

likely to upset this outlook to

tne

nomic

oi

Suez

possible

many

complications,
into

translated

measurable
S.

yet

cannot

clearly
the total

impact on
for 1957;

and

an¬

price trends,' continuing

in

count

less accelerated pace

a

will probably ac¬
something between a

1956,

for

third

eco¬

any

economy

upward at

in

The

stoppage, though containing

seeas

be

extent.

any

and

half

a

the

of

advance

economic magnitudes
Roughly consistent with

over-all

for

1957.

all

these

Gross

estimates

National.

from

$412

would

be

Product

billion

rising

about

to

a

$427

billion, disposable income moving
up to. about $298 billion, and con¬
expenditures
running
somewhere around $275 billion.

Against

this

background

general

ing

of

initial

on

fairly

conservative

with

son

permit

may

percentage

(1) Sales. For the calendar

year

whole, department store sales,
according to Federal Reserve fig¬

in

place

mobile

sales

their

this

Since

crease.

a

margin
possible for

gross

.

appears

.

in¬

4%

the

up

past

The

same

for

expense rate

still

are

than

more

rate of sales

in¬

I find it difficult to believe

crease

that

3%

a

the

total

son.

20%

over

it

Net

Earnings.

With

any

margin improvement offset
by the rising expense rate, the net
profit percentages of many de¬
partment stores will probably ex¬
hibit little change during this 1957

spring

season.

likely

to

Since net sales

show

are

advance, it
follows that total dollar earnings
could be a little higher than in
the 1956 spring season.
some

that
any

department
for

to

stores

automobile

somewhat
In

hard

will

better in 1957, when the

pects

1956.

which

more

of

us

from

of

1925

Sholiey lives in West

the

members

new

to

also

were

three-year

terms

on

sponsors

committee, which

the

Association's

public
information
They were Hugh
W.
Long, President of Hugh W. Long
program.

Company, Incorporated, Eliza¬
N. J.;
Charles M. Werly,

beth,

Trustee

of

The

George

Putnam

Fund of Boston.

Also members of the

Public

seven-man

Information

Messrs.

are:

Harold

Committee

K.

Bradford,
President, Investors Mutual, Inc.;
Dorsey
Richardson,
Vice-Presi-r
dent, Lehman
Corp.; Henry
J.

Simonson, Jr., President, National
Securities and Research Corp.; and
Joseph E. Welch, Executive Vice-

President, Wellington Fund, Inc.

District Chairman

Thus my answer to the question
I
propounded at the be¬

ginning

of these

business
1957

its

remarks

will

that

but

rate

not

it

of

is

will

James

that

turn-down
flatten

in
out

is

want
not

likely

make

to

regard

forecast,
this

to

it

this

of

small.

clear

Chair

that

I

I

the

on

part of American business in 1957
a

stabilization, a needed breath¬
ing .spell, to insure a vigorous
advance

this

in

total

store

ment

little later.

a

picture

industry

the

If

depart¬
to

seems

that

a

must

factors
rather

than

the

of

be

ascribed

peculiar
to

to
the

American

to

that

certain

industry

general

v

i

n

e

1

i tto'c

(Georgia,
b

a

a

m

a,
a,

i

a,

L

o n

a ii

s i

Mississippi,
Carolina

So.

Tennes-

d

a n

e)

s e

of

t i

a

the

on

I

a

Associates

of

Securities
Dealers.
Mr.

Beeson

T.

James

Beeson

succeeds Einer

<

oc¬

moderately less favorable
position,
that is
a
consequence
cupy

m a

I;

s
m

Florid

neces¬

sary

forward

A 1

N

period of

o m

No. 9

a

performance

will represent

C

I
do

D i

of

pessimistic
believe that

as

because

kind

be

&

Was

considerably.
Increases
in dollar
magnitudes,
as
compared with 1956, presum¬
ably will be registered, but the
physical component of these.in¬
creases

T.

Beeson, Clement A.
Co., Inc., Augusta, Ga.,
cliilcd
;

Evans

growth

trend

Nielsen,

J.

C.

Bradford

&

Co.,
Nashville, Tenn. Hugh D. Carter,
Jr., Courts & Co., Atlanta, was
elected
Vice-Chairman, succeed¬
ing Mr. Beeson.

economy."

Foster Elected NASD

Municipal Men
Annual Spring Parly

CINCINNATI,

Ohio—The

Municipal

Dealers

hold

their

annual

June

will
party,

13

and

the Sheraton Gibson Hotel
13th

and

Club

on

Maketewah

the

Cin¬

Bond

14
on

at
the

Country

14th.

District Chairman
BOSTON, Mass. — Frederick H.
Foster, Lee Higginson Corp., Bos¬
ton,
was
elected
Chairman
of

;

District Committee No. 14 (Massa¬

chusetts,

Maine, New Hampshire,

Rhode Island and Vermont) of the
National

Association of Securities

Dealers.
Mr.

Foster

Amazeen,

succeeds

Coffin

Edward

S.

Inc.,

Burr,

&

Boston.

Harry Williams Partner

Ronald Beaton Forms
Own
ST.

are

than

the

rather

PETERSBURG,

A.

at 2744
in

a

Beaton

firm

has

securities
name

of

business
Ronald

past that any shrinkage in durable

was

goods

tributors

automatically

Fla.—Ron¬

opened

offices

Central Avenue to engage

notion

may

ald

In F. I.

Investment Office

Investment Securities.

would

Two

elected

which

hopefully have entertained in the

sales

partner

a

Beeson Elected NASD

do

pros¬

sales

optimistic

Certainly

some

Mr.

was

Newton, Mass.

gross

argue

be

Associates

r,

when auto¬

dropped

to

He

can

prevented
from
advancing
somewhat during this spring sea¬

(4)

Minneapolis,
he
University of

Minnesota.

and

ratio

expense

in

graduated from the

time

some

operating.
Wage
rates are continuing to rise, and
productivity still lags.
With no

mark,

going

Funds, Inc.,
Boston, since

Sholiey

Born

performance

year

going below the 6 million
is

S. L.

1934.

to 1930.

Expense.

Total

(3)

ne

C ustodian

Cambridge

tendencies that have been pushing

Group

as a

Key sto

sea¬

the Spring season of 1957.

spring

Department Store Prospects

took

the

in

Preside nt of

have

markdowns,
a
tendency
which
be reinforced1; by the rising
price level. On the whole, a slight
betterment; in

Key¬

Plan

1931, has been

may

cinnati

maintained

stone

decrease in

some

Sholiey,

the

of

•

economic

1957.

ures,

stores

n-

co-founder

,a

inventories

most'

which

a

nounced.

the

emerged from the Christmas

has

been

Mr.

but

suc¬

it

man,

of

close ceil¬

a

markon,

to

Joseph
E. Welch, re¬
tiring
Chair¬

~

will continue to hold

turn finally to the

we

number

Investment

1957,

Cinn.

-

of

ceed

Gross Margin. Competition

sumer

IV

Association

price in¬

a

the

quite

been
Public

Companies for

less

1956; and, finally, consum¬
will score no more
modest increase in 1957,

a

tional

possibly will
than during the corre¬

lower

(2)

economy

spending

er

part

that

lias
the

of

to

-prices);

.

Sholiey

Chairman

sponding months of 1956.

this point it appears that the line¬
up

so

retail

as

inclined

am

elected

Information Committee of the Na¬

be

busi¬

briefly

I

large

and

crease

toward

advance

increase

L.

Sidney

likely

seem

a figure of
the plus side, which
the
dollar
increase

on

run

and

not

conservatively at

rises in steel, petroleum products,

govern¬

a

Suez

of

does

transactions

For the follow¬

government

The

devel¬

the
Federal
cash balance is

such
certain

light
it

sales generally.

business during the spring season

year

less

exploded.

Spring of 1957 will show quite
good

prospects for the department store

tax

the

opments, and currently impending

1957,

to

small

a

inflationary

of

reduction.

for

respect

budget^

for

sound

a

In

about 3%

Al¬

though there is much concern in
quarters in regard to the

sharp decline in business

a

reason

With

in

1957.

Fiscal Policies. It
quite clear that no reduc¬
either business or personal

Federal

(1)

(2)

than keep pace

however,

which

factors

bearing

three other

some¬

reductions, disposable

will

are

-

guess

4.4%.

some

than

In addition to these major flows
of spending there

tures and

narrow

World Trade,

and Prices

advances,

the year progresses.

Since

Policies,

nave

pretty well

for December,

increase

an

ticipated

increased

improved farm in¬
The month-to-month com¬

1955,

U.

em¬

somewhat

come.

moderate increase

a

which would furnish

income,

annual

an

the

1956, probably not to exceed

over

which

spending do in 1957?

(a)

along

to

billion

quarter

run¬

of

annual

$270 billion.

over

major

65%

or

an

than

more

look.

Per¬

the

Product,

$265

some

year

fourth

sumer

is

spending, typically

National

on

whole, therefore, is likely to show

sets

Spending.

consumption
of

spending

consumer

tential

sonal

yet

Sholiey Heads Comm.

depart¬

been

of

average of 111.3

an

Canal

Total

rather

Analyzes Consumer Spending

several

yoDreciable

industry
as

the minusv side of

for

mid-December the general whole¬
sale price index stood at 116.2 vs.

closer to 6 million

On the

balance sheet.

flow

not

commercial

will fall off.

the

the 1957

jusut slight¬

that

have

num¬

cars.

con¬

of

ment store business seems to

that department store sales for the

rapidly in 1956 than
previous years. As of

more

first part of

somewhat

.

correspond¬

a

volume

rising

paying for the 1955 cars
credit
terms, I am disposed to mark the
industry's estimate down to a fig¬
ure

1957, there is consider¬

likelihood

who

owners

exten¬

which they bought on long

fairly

construction

in

credit

of

finished

result

that the dollar value of total
was

periods

of

the

with

struction in 1956

ber

rose

construction

sharply

over

a

the total vol¬

on

consumer

•

.

into

higher

situation

an

matter of

Next comes the

(d)

consumer

assess.

translated

Prices. Wholesale prices of
manufactured
goods
have
been

a

(3)

so

be

ingly

(3)

The Critical Year of 1957?

about 7!/2 %

is

is difficult to

Will Business Turn Down in

represent

other than
The whole
complicated that it
goods

products.

Thursday, February 7, 1957

,

formerly

an

under the
A.

Beaton

Mr. Beaton

officer of

Dis¬

Group,-Incorporated.

Harry
made

a

G.

general

nation-wide
Francis
Feb.

duPont & Co.
Williams

has

partner

brokerage

I. duPont &

been

in

firm;

the
of

Co., effective

1, it has been announced. Mr.

Williams, who

has been Manager

of various New York offices of the
duPont

firm, will be in charge of

the

five

ern

California.

duPont offices

in South¬

185

Volume

Number

5610

.

.

The Commercial urcd

.

Financial Chronicle

(703)

The

Indications of Current
Business

week
Latest

AMERICAN

IRON

STEEL

AND

Indicated steeL operations

Equivalent

and

oil

Crude

-

.

each)—
to

runs

—

stills—daily

—

Kerosene

.

(bbls.)

at

Residual fuel oil

CIVIL

99.1

2,519,000

7,431,000

-

AMERICAN ZINC

2,439,000

Slab

zinc

2,487,000

27,107,000
2,472,000

8X57,000

28,176,GOO
■

smelter

9,004,000

'

(bbls.) at-

191,373,000

185,796,000

25,619,000

.27.542,000

31,799.000

106,668,000

114,424,000

134,809,000

89,161X03

39,531,COO

41,009,000

42,649,000

38,351,000

Jan. 25

*

„

178,947,000

Jan. 26-

-

(tons
•

of

98.234

21,592,000

December

52J.S46

from

,

a

CONSTRUCTION

665,745

657,269 .'

632,157

;

connections (no„ of cars)—Jan. 2d

NEW

(millions

thousands).——
DEPT.

—

•

OF

•

—

<

OUTPUT

Bituminous

667,894

606,515

Jan. J1

$406,802,000

$222,142,000

$323,736,000

$532,973,000

223,0)2,000

81,297,000

144.7GG.UC0

401,599,000-

U.

_-_-a—Jfan.

—,—

municipal

<U.

coal

31-

7

OF MINES):
(tons).

lignite

anthracite

(tons)-

i.

_—i

)

"

ELECTRIC

Electric

output

FAILURES

(in 000

BRAD STREET,

INC

140,845,000

173,968,000

131,374,000

COMMERCE

120,434.000

138,390.000

105,048,000

Pig iron

7 ^

20,411,000

40,578.000

INDUSTRIAL)

DUN

—

METAL

PRICES

Electrolytic

(E.

refinery

(New York'

Lead

(St.

Zinc

489,000

351,000

630,000

100

112

94

(East St.

2

*12,322,000

12,410,000

11,671,000

11,540,000

Government

253

222

5.622c

5.622c
S62.90

S63.50

*0

South

30

35.500c
33.200c

Jan. 30

35.400c

35.G75C

-32.900c

16.000c

43.473c

33.375c

16.000c

45.150a

16.000c

Gas-fired

15.300c

15.809c

Gas

a—Jan. 30

14.0C0c

14 000c

14.000c

14.000c

Gas-fired

Jan. 30

13.5G0C

13.500c

13.500c

13.5C0c

30

25.000c

25.000c

25.0(Xk

22.500c

-..—-Jan. 30

102.750c

100.625c

,

^

.-Feb.

*

102.501c:

91.98

:2__

"

Gas

,

318 R°2

95.92

35.16

107.98

100.49

98.88

111.62

'98.25

97.31

109.97

96.23

95.62

107.98

89.09

89.23

55,100

94.86

94.71

93.97

96.38

96.54

96.54

ICS.34

96.38!

95/16

1 JS.42

t

-

2X0

4.06

3.28

OF

3.72

3.32

3.08

(000.000's

F«b

5

3.86

3.86

3.91

3.17

LIFE

"

LIFE

5

3.99

3.99

4.03

3.28

4.48

4.47

3.59

Feb.

4.C8

4.09

Orders received

4.14

5

3.98

3.97

3.97

3.26

5

3X7

3.93

4.06

5

424.2

429.9

440.1

407 3

Jan. 26

ASSOCIATION:

OIL, PAINT AND

DRUG

237.425

*

*3^3 220

278.737

*♦222.250

95

**52

1C2

330,684

430.271

*'419,403

Month

296,802

96

539,411

—

Feb.

1

111.13

111.14

110.61

V

LOT

DEALERS

SPECIALISTS

AND

EXCHANGE—SECURITIES
Odd-lot

sales

dealers

by

purchases)—+

shares

of

*

Sales

As

1,564,230

1.3C6.817

1.250,967

1.417,254

«*an- 12

$77,553,576

$67,436,972

$64,101,832

$72,738,699

Jan. 12

1,078,221

945,750

1,060.894

1,091,669

Jan. 12

8.315

5.723

5.434

5.401

12

1.069,906

940.027

1.055.460

1.086.268

Jan. 12

$52,253,290

$48,447,579

$51,258,402

$54,8d3,08y

.

Customers'

short

Customers'

other saies__——

sales.

OF

of November

____

Jan

—

Dollar value
Round-lot
Number

___i.

sales

of

sale's

Jan. 12

sales

Round-lot

Number
TOTAL

Total

ACCOUNT

round-lot

SALES

OF

ON

THE

STOCK

ROUND-LOT

AND

MEMBERS

N

V.

30

270.350

270,350

699,070

521,250

<(«>'(

n>

*74,310

Total

544.549

in

stocks

11.829.160

10.584.780

12.042.060

12X33,000

12,442,370

which

in

10,995,990

12.536.6CO

12,800,390

Less

1,273.040

1.724.210

1,579,880

285.740

195.310

328.239

224.210

1,481.530

1,319,980

1,261.210

1,480,150

-Jan. 12

1,767,270

1,516,790

1,539,440

1,704,360

--Jan. 12

on

349 050

the floor—

purchases

Short

sales

Other

Total

Other

sales

Total sales

PRICES,

SERIES

NEW

—

U.

S.

DEPT.

OF

23.7X)

340,530

All

Monthly
exceeds

other than

farm

figure

^Includes

and

740.00C

1957, as against Jan.

Investment
one-half

payments.—

I

536,404

47^,140

€93.224

Net

698,575

701.184

562.170

railway operating income before charges

699,,164

Net

income

2.472,561

2.061,365

2,679.375

2,432.741

REAL

443.390

327,990

445X00

340.380

2,383 855

2.222.874

2.049,210

2.423,924

2,332,245

2.550,864

2,494,400

2,764,804

Total operating
Total
operating
Operating ratio

34.0

30.7

Plan

cent

a

1,

(Prime

pound.




barrels

of

1956 basis

western

**Nine

Zinc

days

foreign

of

sold

on

Dec.

656,321,211

72.61

75.09

$122,545,209

FINANCING

OF

and

(estimated)

$94,848,739

87,759,592

121,713.784

103,152,048

U.

IN

103,000,000

81,000,000

S.—HOME

loan

of

Nov.

$847,957

$765,340

NON-FARM
LOAN

(000's

BANK

omitted):

associations

companies

136,451

savings banks

152,272

499,277

182,855

170,277

326,899

285.235

401,079

438.671

443,405

$2,425,386

$2,316,124

$1,515,400

—

154.263

152,220

companies

474.741

292.704

trust

408,478

$2,107,725

and

*$1,656,100

$1,321,600

119.8

crude

123,363.090

ended

charges

Individuals

75.7

124.6

—

99 A

32.9

:

BOARD—Month

Savings

86.7

125.2

—

expenses

after

ESTATE

AREAS

112.0

—Jan. 23

foods.

revenues.

Taxes

Insurance

88.5

$874,083,272

699,353,236

$716,793

558X25

103.7

$963,199,291

68,000,000

95.94C

116.3.

$887,604,728

(AS¬

88,030

89.2

17.7

299.4

77.41

ROADS

104.780

104 5

18.9

RRs.)—Mon.n

139.950

117.0

28.1

687,121,522

CLASS

AMERICAN

OF

530.391

39.4

30.2

$92,693,734

EARNINGS

.361,280

104.3

7.2

49.6

*316:3

573.745

116 9

5.3

7.4
*52.3

19.1

342,600

Jan. 29

6 0

30.4

dividends

494.825

125.2"

Miscellaneous

runs.

tons.

delivared

31,

1956.

53ased

(Number

basis

at

on

of

annual

new

orders

centers

not

where

freight

since

tram

of

Introduction

East
.

St.

STATES

BUREAU

capacity of 133.459 150 tons

reported

J

(000'i

1

Imports

OF

EXPORTS

AND

IMPORTS

CENSUS—Month of November

omitted):

Louis 1
,

lending institutions—

Total

UNITF.D

1,

and

332,890

Jan. 29

commodities

of Jan.

income

528,371

Jan. 29

36.4

6.0

52 0

income

366,400

—Jan. 29

foods

29.3

*38.0

in¬
7.4

rental

transfer

5T.3

*30.9

Novembei:

of

Mutual

products

•Revised
as

special

income

and

SOCIATION

Bank

Meats

94.2

*60.2

31.1

nonagricultural income.

RAILROAD

20,730

313.860

_

commodities

Processed

for

—_

labor

Total

Total

Commodity Group—
Farm

—:

—

contribution

Personal interest

LABOR— (1947-49= 100):
All

217.2

*100.6

38.0

—

Jan. 12

sales

WHOLESALE

26,400
306.490

account of members—

purchases

Short

$314.5

*229.7

60.4

—

Jan. 12

Total round-lot transactions for

*$332.5

101.2

receipts, total

Jan. 12

Total sales

2,474,628

COMMERCE)—Month
billions):

Jan. 12

sales

94,460

2,211,198

OF

Jan. 12

.

104,749,886

69,064

STATES

lncome______.

employees'

Proprietors

322,470

22.700
343.700

floor—

207.699.177

99,382,421

230.7

UNITED

..Jan. 12

the

sales

Other

THE

Jan. 12

off

211,411.894

150,586

2,323,852

-•—Jan. 12

initiated

purchases

Short

331.420

341,506
894,009

99,022,076

other collateral

33,755

821.688

219,175,881

_iJan. 12

transactions

Total

233,500

Jan. 12
Jan. 12

.

sales

Total sales

Other

$2,825,006

*32,484
317,346

880,104

balances

industries

Other

1,595,140

.Jan. 12

initiated

$2,816,837

32,382

surance

Jan. 12

sales

on

IN

(in

personal

Government

„

Jan. 12

Total sales

Total

$30,993,000

27,343

335,831

in U. 5...

free credit
listed shares

of

November

Service

registered—

purchases

Other transactions

$30,839,000

'

$333.6

banks

Commodity producing industries
Distributing industries

467,390

MEM-

in

borrowings

of

——'Jan. 12

specialists

*28,294

accounts—

balances

customer^'

value

(DEPARTMENT

411.210

Short sales
Other

of

and

PERSONAL INCOME

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
of

hand

margin

debit

net

to customers

borrowings'on'U. S. Govt, issues..

Total

613.210

OF

$45,669

'•

586,340

-

ACCOUNT

19,639

*$50,815

Dec.

Member

264,090

Jan. 12

Transactions

carrying

extended

Wage and salary

FOR

$26,050

*21.407

omitted):

firms

01:

of

Member, value of listed bonds

264,090

:Jan-12

TRANSACTIONS

omitted).—

EXCHANGE—As

customers'

Total

STorg

Tot$l sales

ROUND-LOT

Cash

sales-

OJher sales
-

222,030
222,030

--

Short sales

;

(000's

STOCK

(000's

Credit

TRANSACTIONS

(SHARES):

30

Member

Jan- 12

STOCK

ROUND-LOT

FOR

■

shares

EXCHANGE

214,180

214,130

-—Jan, 12

——

purchases by dealers—
of

Nov.

YORK

Total

..Jan. 12

.——

—

*$29 403

(millions of dollars):

CIRCULATION—TREASURY DEPT.

Market

sales

Other

of

NEW

by dealers—

shares—Total

Short

IN

Member

——.,

$4,570

-

by dealers (customers' sales'—
orders/—Customers' total sales.—.

of

$4,792

INVENTORIES AND SALES
COMMERCE) NEW SERIFS—

_

MONEY

Odd-lot purchases
Number

1,340

$2,855,777

Z_
i__i

—

Nonciurables

107.09

«-Jan. 12

—

Dollar value

525

y$3

Nov.

Durables

STOCK

Y.

$2,795

549

863

$31,424,000

of

Inventories—

COMMISSION:

EXCHANGE

(customers'

'

Number

N.

ON

$3,280

512

INSTITUTE

Month

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDi
,

72,500.000

$436,000,000

21,435

—

84,500,000

$516,600,000

$29,857

PURCHASES

INSURANCE

80,100,000

omitted):

Total

AVERAGE =100

.

MANUFACTURERS'

INDEX—

PRICE

71,700,000

.

Total

248 781

282,631

Jan. 26
—-X_ Jan. 26

period

39,500,WO

95,800,000 ,f

I..Z

;

(DEPT.

234.936

26

—Jan

REPORTER

.

\
——

of

9,200.000

45,500,000

3.20

-—Feb.

——

•

53,600,000

9,900,000

2.38

—--Feo.

(tons

$189,500,000

57,700,000

9,100,000

Z~'

.*

Tf

Group

Feb.

Production (tons)
Percentage of activity
Unfilled orders (tons), at end

$223,200,000

56,300,000

44,100,000

Industrial

4.49

5

Group.

NATIONAL PAPERBOARD

$197,500,000

ZZZZ
Z__I~

Ordinary

—Feb.

Group

TO

LIFE

86,000,000

INSURANCE

5

'Industrials

OF

November:

28,808

3.54

4.01

3.70

MOODY'S COMMODITY INDEX.

of

$51,292

3.20

4.01

5

Utilities

195,500

$4,742

3.15

5

—:

242,500

20,100

$3,367

5

;

184,400

$473,100,000

Feb.

.

PAYMENTS

INSTITUTE

—

Total

Feb.
•

8,000

195,900

194,700

payments

'

96.34

13,200

141,700

shipments (units)
shipments (units)

payments

Surrender, values
Pblicy dividends

106.21
'

77.400

26,200

7,800

range

Death benefits
Matured endow ments

Disability

78.900

11,900

(units)

INSURANCE—BENEFIT

Annuity

258,883

ASSOCI¬

shipments (units)
shipments (units)

heater

345,308

287,639

November:

shipments

INSURANCE—Month

102.63

"

gas

water

2n0.961

276,045

burner

boiler

*.•—Feb.

Bonds

,

of

furnace

POLICYHOLDERS

96X4

^

AVERAGES:

DAILY

87.59

&L23

Feb.
Feo.

_______—___

91.52

95.92

__,—3rFeh.

—

MANUFACTURERS

conversion

^•Domestic
LIFE

*

—Feb,

Group

80,197

3,485
537

101.750c

—

r

A

250.057

373,193

—

*

!

ATION—Month

16.000c

15.800c

Bonds

Government

1949

tons)_:

(net

(tonnage)—estimated—
(tonnage)—estimated

Aa

k\

tons)

APPLIANCE

15.800c

at

YIELD

GAS

30

——Jan

.

Average corporate

Public

tons)

—

closed

Aaa

Railroad

(net

...

Jan. 30

—

•Railroad

BOND

330,554

281.369

anthracite

America

tons)_

America

Shipments

88.95

,.

(net

(net

Contracts

7**

98.25

S.

Pennsylvania

Central

300

$50.83

Jan

Group
Public Utilities -Group
Industrials Group £tJH,

658,584

201,675

MINES)—

STRUCTURAL STEEL (AMERI¬
CAN INSTITUTE OF STEEL
CONSTRUC¬
TION)—Month of November:

S59.09

$57.83

100.82

U.

Asia

To

5.174c

862.90

'■

:

OF

273

5.622c

Average corporate

MOODY'S

of

and

Undesignated
320

$55.50

(primarv ptg,.99) at-—•
Straits tin (New York) at

*

Europe

•

at

$2,418,700

OF

(000's

tons)

North

To

S62.50

at__

;

$314,400

283,182

DEPT.

December

ox

(BUREAU

exports

To
To

,

—Jan. 29

MOODY'S BOND PRICES DAILY AVERAGES:

til

S.

(net
96

———Jan. 29

__.

at

Louis;

$81,600"

Month;of November:

____Jan. 29
,

at-

*$87,200

FABRICATED

QUOTATIONS):

J.

EXPORTS

U.

&

at

Louis)

(delivered

U. S.

10,420,000

531,000

-.

Aluminum

"

5,100.000

Jan. 31

.

M.

refinery

Lead

tZinc

St

*9,925,000

Month

—

copper—

Domestic

Export

lb.)_

(per

•*.'10,210,000

PRICES:

gross ton)
(per gross ton)

steel

12,300

23.600

2,764

S.

26,326,000

)

,Feb.

(per

Scrap

$45,700

13,100

23,300

BY

omitted)

29,420,000

Jan. 26

<_

IRON AGE COMPOSITE
steel

*$50,800

13,200
23,500

487,621

REPORTFD

CORPORATIONS—U.

'

kwh.)_
AND

S

COAL
26

^

RESERVE

'

INSTITUTE:

(COMMERCIAL

Finished

$51,300

$2,217,400

CASH DIVIDENDS—PUBLICLY

154,370,000

Jan. 26-

STORE SALES INDEX—FEDERAL
SYSTEM—1941-4D AVERAGE = 100

j

v

——/'Jan.

DEPARTMENT

EDISON

$200,523,000

v

183,790,000

.—.Jan. 3i!

BUREAU

S.

and

'

Pennsylvania

$185,207,000

.

.1———I'l— ''
—-——i—z~%

_

Retmi

Jan. 31

,,

COAL

$201,875,000

COM¬

———

__

Total

X

construction

State and

72,908-

,

,

Private construction
Public

45,866

92.578

SERIES—Month of November

of dollars):

Manufacturing

ENGINEERING

—

construction

S.

TJ.

40,979

$87,900

received

ENGINEERING

Total

89,657

70,185

34,913

OF GOVERNORS
OF
RESERVE SYSTEM—Month

(in

INVENTORIES

MERCE

691,850

110,433

68,632

DEBITS—BOARD

Wliolesale

"'"i487,546

91,803

99,787

pounds)_II—IZZZ~

2,000

NEWS-RECORD:

V

Ago

of

end

BUSINESS

'

r

grades

—

(tons

at

THE FEDERAL
of

8.836,000.

.

193,248,000

Jan. 25"

—______

BANK

13,310:000
-

'

Jan. 25

1

output all

of period (tons)—
—>
Unfilled orders at end of
period (tons)_lZ—

2,707,000

'14,585,000

8,923,000
*

__Jan. 25/

Year

Month

of

26,452,000

.

2,746,000

14,841,000

8,702,000

lines—
;

INSTITUTE, INC.—Month

pounds

Stocks

6,994.300

8,395.000

8,120,000

~

*_

7,392,350

14,323,000

—Jan. 25

ASSOCIATION OF AMERICAN RAILROADS:
Revenue freight loaded (number of cars)

freight

Jan. 25

—.

4---.--Jan. 25'
—1_.

of that dates

Previous

Month

Ago

98.4

*2,498,000

26,850,000

a

are as

December:

7,395,500
118,169,000

,

25

___Jan. 25

*

Distillate fuel oil (bbls.) at__—

Revenue

Ago

"">97.6

of quotations,

cases

Latest

Shipments

(bbls.)___-___—_Jan.

average

Stocks at refineries, bulk terminals, in transit, in
pipe
Finished and unfinished gasoline (bbls,) at
,

§96.6

§2,472,000

A__Jan. 25 "

—

'

10

in

or,

either for the

are

Year

(bbls. of

—

output (bbls.)
Kerosene output (bbls )--—
Distillate fuel oil output (bbls.)__
Residual fuel oil output (bbls* )_I

V

Month

production and other figures for the

cover

Dates shown in first column

that date,

on

2,000

output—daily average

__—

Gasoline
J

month ended

Week

Feb. 10

month available.

INSTITUTE:

condensate

and

gallons

42

Feb

or

<

AMERICAN PETROLEUM
Crude

(percent of capacity)

or

Previous

Week

(net tons)

castings

'

I

INSTITUTE:

to—

Steel ingots

following statistical tabulations

latest week

39

—

986,000

1,120,000

1,004,600

40

The Commercial and Financial Chronicle

(704)

.

.

.

Thursday, February 7, 1957

INDICATES

Now in

Securities
Discount,

Aid Investment &

Inc.

(2/11-15)

(2/11-15)

&

'

.

of 6% capital notes due

Jan. 24 filed $1,250,000

„

Feb. 1,

(convertible until Feb 1, 1964). Price—To be sup¬
plied by amendment. Proceeds—To reduce bank loans
and for expansion program.
Office — Akron, Ohio.
tJndervrriter—Merrill, Turben & Co., Inc., Cleveland, O.
1972

Allied Resources Fund, Inc.,
Dec.

Proceeds— For investment.
Marquette Ave.,. Minne-.

Price—At market.

cent).

Minneapolis, Minn.
stock (par one

filed 400,000 shares of common

14

tJiiderwHter—Fund Corp,, 523

apolis, Minn.

"•

Amalgamated Minerals* Ltd.
(letter of notification) 3,000,000 shares of com¬

JEfov. 23
mon

.stock <par

Ppice-10 cents per shape.
and development of oil
901 Sherman St., Denver, Colo.

five cents).

Proceeds—For mining expenses

Office

properties.

—

Underwriter—Lackn^r^&,Co., Denver, Colo,.
American Federal Finance Corp.,

_

Fain is President.
»

American

Natural

Gas

Co.

(2/27)

privilege); rights to expire about March 14. Price

—

To

supplied by amendment. Proceeds — To purchase
common stock of Michigan Consolidated Gas Co., a sub¬
sidiary, providing the latter with funds to repay or
reduce $25,000,000 of bank loans. Underwriter—None.

4be

Anaconda iCo.,

New York (2/18)
1,734,865 shares of capital stock (par $50)
to be offered for subscription by stockholders of record
Feb. 14, 1957 at the rate of one additional share for each
five shares held; rights to expire on March 5. Price—To
be supplied by amendment. Proceeds—For improvement
and expansion program. Underwriter—Hallgarten & Co.,
Jan. 25 filed

(2/18-21)

I Jan. 24 filed 177,760 shares of 35-eent cumulative convertible preferred' stock (par $4) and 177,760 shares of
.

stock

(par $1)

to be offered in units of one
Of the common stock, 50,000
of certain selling stock¬

'share Of each class of stock.
shares

are

holders.

to be sold for

Price—$9

per

account

unit ($5 for preferred and $4 for

common). Proceeds—To repay bank loans and for ex¬
pansion and working capital.
Office — Miami, Fla.
Underwriter—Scott, Horner & Mason, Inc., Lynchburg.
t

Virginia.
Investment Co.,

South Bend, Ind.
•Jan. 7 filed 85*000 shares of common stock (par $10) to
he offered in exchange for the outstanding stock of Capr
itoL Life Insurance Co., Denver, Colo, on the basis of 34
shares
INone.

of

Associates

stock

for

each

share

This offer'will expire on Feb. 21.
Statement effective Jan. 30.

of Capitol
Underwriter—

Atlas Credit Corp.,. Philadelphia, Pa.
filed $600,000 of 6% convertible subordinated

debentures due .June 15, 1968. Price—100% of principal
amount. Proceeds—To retire indebtedness of the oom-

to its affiliates for

borrowed for working
•capital. Underwriters-^Hallowell, Sulzberger & Co. and
Charles A. Taggart & Co., Inc., both of Philadelphia, Pa.,
»«ad Weill, Blauner & Co., Inc. of New York.
money

Automation Development Mutual Fund, Inc.
Aug. 24 filed 300,000 shares of common stock. ' Price—At

market.

Proceeds—For

investment.

Office—^Washing¬

ton, D. C. Distributor—Automation Development Secu¬
rities Co., Inc., Washington, D. C.

AAzzardo, Inc., Washington, D. C.
Jan. 22 (letter of notification) 3,100 shares of common
-stock.
Price—At par ($10 per share).
Proceeds—Foxworking capital. Office—815-18th St., N. W., Washing¬
ton, D. C. Underwriter—None.
Bank

(

Danbury, Conn. (2/18)
Jan. 25 filed 146,160 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—To four
trusts. Business — Manufactures precision ballbearings;
Underwriter—Shearson, Hammill &.Co., New York. v
•-

Proceeds—To

Offshore,; Inc. (2/19?20-) '
$2,000,000,of 6% subordinated sinking fund
debentures duerFeb. .15; 1967,-and 600,000 shares of com¬
mon-stock (par 50 cents)~to be peered in units of j^lOQ of debentures and 30 shares of stock. • Priee? — $128" per:

and[,$£,

Shares, Inc.

Bee. 27 (letter of notification) 30,000 shares of 6%
prior
©referred series C stock to be offered to holders of series
A prior preferred and common stockholders
of record
Bee. 31, 1956 on the basis of one new share for each four
Shares of old stock held.

Price—At par ($10 per share).

La.

A Bonista Co., New Orleans,

;

of

common

;

.

for each seven shares

Cooperative Grange League Federation
Exchange, Inc.
^
;
Dec. 21 filed $1,200,000 of 4% subordinated debentures
due Jan. 1, 1966; 10,000 shares of 4% cumulative pre¬
ferred stock (par $100) and 150,000 shares of common
Stock (par $5). Price—At principal amount or par va.'ue.
Proceeds—For working, capital.. Office — Ithaca, N. Y.
,

.

Price—$350 per
capital expenditures and working
Office.— 1609 Orleans Ave., New Orleans, La.

Proceeds—For

capital.

Underwriter—None.

^ Brite-Lite Corp. of America
Jan. 28 (letter of notification) 300,000 shares of pommon
stock (par 10 cents). Price — $1 per share. Proceeds—
For capital expenditures and working capital.
Office—
Title & Trust Bldg., Phoenix, Ariz. Underwriter—None.
•

Brunswick-Balke-Collender

Jan.

11

Underwriter—None, Statement effective Jan. 23.

t Consolidated Edison Co. of New York,: Inc. (2/27)
filed $55,087,300 of convertible debentures due

Feb/1

Feb. 15, 1972, to be offered for subscription by common
stockholders of record Feb. 25, 1957, on the basis of $100

Co.

of debentures for each 25 common shares held; rights to
expire March 15, 1957. Price—To be supplied by amend¬
ment.
Proceeds
To retire about $43,000,000 of bank
loans
and for
construction program.
Underwriters—

filed $5,888,800 of 5%, convertible subordinated:
due Feb. 1,
1972, being offered for sub¬

debentures

—

scription
1957 at

by
the

common

rate

of

stockholders of

one

$100

record Jan. 31,
debenture for each nine

Morgan Stanley & Co. and The First Boston Corp., both

stock held;

shares of

rights to expire on Feb. 14, 1957.
principal arhount.
Proceeds—For ex¬
pansion program. Underwriters—Lehman Brothers and
Goldman, Sachs & Co., both of New York.

of New York.

of

Consumers Time Credit, inc.
Jan. 17

(letter of notification) $250,000 of 6% renewable
payable upon demand) Feb.
1, 1962 or payable (without demand) Feb. I, 1967. Price
—At pax*.
Proceeds — For loans, working capital/ etc.
Underwriters— Walnut Securities Corp., Philadelphia,
Pa.; B. Ray Robbins Co., New York, N. Y.; and Berry
& Co., Newark, N. J.
;
'

debentures (subordinated)*

Shore Mines* Ltd., Toronto^ Canada
July 26 filed 600,000 shares of capital stock, of which
Burma

500,000 shares
shares to
ceeds

—

are

to be

offered publicly, and

,

100,000

promoters.' Price—At par ($£per share). Pro*
For equipment, exploration, drilling, working

capital and other

general

corporate

purposes;

Under¬

.

it Cargo Cool Corp.
(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;
for increased inventories; and for working capital. Busi¬
ness
Transport refrigeration equipment. Office-r-947?
Communipaw Ave., Jersey City, N. J.
Underwriter—
Fred Kaufman Co., Orange, N. J.

San Francisco




to

all

offices

Cleveland

...

.

.

.

,

Corporate Leaders of America/ Inc., New. York /
Feb. 4 filed (by amendment) additional certificates as
follows: $50,000,000 Periodic Payment Certificates, series
B, and 2,568,649.517 participations; and $2,000,000 Single
Payment* Certificates, series B and 103,762.057 participations.
i

•

—

July 30 filed $8,000,000 of 5Y2% sinking: fund debentures
Aug.* 1, 1971, and 1,600,000 shares of common stock
(par one cent); subsequently amended to $4,500,000 of
debentures.
Price
To be supplied by amendment.
Proceeds
About $4,100,000 will be used to acquire
seven shopping center sites
and a Penn Fruit super¬
market adjacent to one of them; the balance will be used
to develop shopping centers at the seven sites and to
acquire and develop additional sites for related real
estate activities, and for general corporate purposes.
Underwriter — Blair & Co. Incorporated, Philadelphia
and New York. Latter h&s Jagreed to purchase an addi¬
tional 300,000 common Shares and reoffer them to nersons selected by it at $1.10 per share. Offering—Date
indefinite.
'
'
—

—

Central Electric A Gas Co.

>

•

_

'•

•

-

•

*

Specialties,

Danly Machine
(2/18-21)

;"

-

Inc., Cicero,

III.

'

Jan. 30 filed 150,000 shares of common stock, (par

$5).
by amendment. Proceeds — For
expansion program. Office—Cicero, 111. Underwriter—*
A. G. Becker & Co. Inc., Chicago, 111.
■

Price—To be supplied

due

•

.

^

writer—To be named later.

(2/20)

Jan. 25

filed $1,750,000 of convertible subordinated de¬
bentures due Nov. 1, 1971. Price—At 100% of principal
amount. Proceeds—To repay bank loans,
purchase secu¬
rities of

subsidiaries and for other corporate purposes.
Underwriters
Paine, Webber, Jackson & Curtis and

.

• Daystrom, Inc. (2/28)
Feb. 5 filed $8,000,000 of convertible subordinate deben*
tures

due

March

amendment.
ital.

1, 1977, Price — To be supplied by
Proceeds—For expansion and working cap-*

Underwriters

Goldman, Sachs & Co. and R. W,

—

Pressprich & Co., both of New York.
Dayton Power & Light Co. (2/8) ,
16 filed 328,630 shares of common stock (par $7)
to be offered for subscription by common stockholders
Jan.

of record Feb. 8 on the basis of one new share for each

eight shares held

(with

an

oversubscription privilege);

rights to expire on Feb. 28. Price — To be supplied by
amendment (to be set by directors on Feb. 8). Proceeds
—To repay bank loans and for construction program.
Underwriter—None.
Delaware Income

Fund, Inc., Camden, N. J.
Price—At

Jan. 15 filed 600,000 shares of common stock.

Proceeds—For

market.

Distributor—Dela¬

investment.

—

Stone & Webster Securities

Century Controls Corp., Farmingdale, N. Y.
Aug. 27 filed $600,000 of 10-year 6% debentures. Price—
90% of principal amount.
Proceeds—For research and
expansion;

purposes.

ware

Corp., both of New York.

equipment;

Underwriter

—

and

other

Distributors, Inc., 300 Broadway, Camden,

Diversified Oil & Mining Corp., Denver,

N. J.

Colo.

Aug. 29 filed 2,500,000 shares of 6% convertible noncumulative preferred stock, first series (par $1), and
warrants to purchase 500,000 shares of common stock

cor¬

None.

(nc.

,

On March 6/

per share.
Proceeds—-For
Underwriter—Nonb; ; \ : r ~ '

construction program.

$250 debenture and one share of stock.
unit.

held; rights to expire

Price—Expected to be $16.50

;

stock (par $100) to be offered in units of one

"

"

; • Connecticut Light A/Power Co.: (2/11)^ V V/ • ■
v
Jam 24 filed 927,598 shares of common stock' (no par)
to be offered for subscription by common stockholders
of record Feb.. 11, 1957 \ on the basis of one new share

2

Chinook Plywood, Inc., Rainier, Ore.
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 mill building, purchase
and installation of machinery and equipment,, and as
operating capita*. Underwriter — Industry Developen,

Private IVires

construction

,

—None.

• Chain Belt Co., Milwaukee, Wis,
27,862 shares of capital stock (par $10) to
offered for subscription under the company's 1956
Restricted Stock Option Plan for Employees.

Philadelphia

for

•

'V.sHV

/

(letter- of notification); 240,000 shares of corn-;
stock; (par $1). Price-^-$1.25. per share. Proceeds-^'
For partial payment for plapt site; partial payment .of;
obligation, to Memorial Inc. and' for "working.. Capital/
Office—471$ W. l8tK St., Houstoh, Tex. UnderwriterBenjamin & Co., Houstonj Tex^ c
.
;
: ;
/

be

Chicago

and

Higginson Corp. and ; Salomon Bros. & Hutzler
(jointly); Eastman Dillon,:Union Securities & Co., and
Glore Forgan & Co. (jointly); BidsWTentatively sched-f
uled to be received on;*March 5. Registration-FP^ahned
for Feb.;5.'/;;;"//.-/.: ■/". "■
-V:

mon

Feb. 4 filed

Pittsburgh

loans

bank

Lee

per share for thec

Dec-. 28.

porate

Boston

reduce

Commonwealth Investment Corp.; -Sioux Falls,, la, ■
stock). " Proceeds-^-For expenses- incident to off-shores'/
Jan, 14 filed 499,400 shates of commeri-stock; (par $1)-»
drilling; of oil and gas wellsV /Office^Shreveport, La. .;
'Priife^-$4 per share. Proceeds^-For Avoiding; capital:to*
Underwriter—Bear, Steams & Co., New Yotk. ':*'*■
>
expand company's business and operations/: Underwriter

development;

Haw York

Price—100% of prin¬
bank loans. Under¬

Underwriter—To be determined by competi¬
tive bidding; Probable' bidders; Halsey, Stuart & Co.
Inc.; Dillon, Read & Cq. Inc. and The Ohio Co. (jointly);

Barnwell

($98 .for the debenture

Feb. 20.

program.

Jan. 29 filed

unit

on

REVISED

/A-Columbus & Southern Ohio Electric Co. (3/5)
Feb. 5 filed $16,000,000 of first mortgage bonds due 1987,

-

Centers Corp., Philadelphia, Pa.

-June 11

#any

held; rights to expire

ITEMS

-

ISSUE

cipal amount. Proceeds—To repay
writer—Allen & Co., New York.

Jan. 31

• Associates

stock.

Office—7th St.

Underwriter—M.

Barden Corp.,

Price—100%

JNew York.

!• Arnold Aitex Aluminum Co.

•

(letter of notification) $212,500 of 8% 10-year
subordinate second mortgage debentures and 850 shares

14 filed 442,114 shares

cammoti

•

Marquette Ave., Minneapolis, Minn.
Bishop & Co., Minneapolis, Minn.

Feb.

of common stock (par $25)
to be offered for subscription by common stockholders
of record February 27, 1957, on the basis of one new
share for each 10 shares held (with an oversubscription

,

H.

Beautilite Co.

.

Killeen, Texas/;

»SepL 5 filed 40,000 shares of class B common stock (par
x$5) and 400,000 shares of preferred stock (par $5) to be
Offered in units of 10 preferred shares and one common
ehare. Price-—$55 per unit. Proceeds—To purchase used
car" paper-and to extend the company's operations into
the field of new car financing. Underwriter—None. J. J.

Jan.

Registration

Proceeds—To be added to general fund.

ADDITIONS

SINCE PREVIOUS

Spari® Baying Action!
No other advertising

medium reaches

America's two major investment
and the

this rich and growing market,
nearest

call

sell

your

more

securities in.

advertising counsel

Chicago Tribune advertising representative today,

•

Colorado Fuel A Iron Corp.
Jan. 15 filed. $19,903,300 of .4%% .convertible-debentures
series A, due Jan. 31, 1977 being offered for

Wdbtmt

subscription

by common stockholders of record Feb. 5, 1957 on the
basis of $100 of debentures for each IT shares of stock

of Mid-

general investing public—as the Chicago Tribune.

For facts that show how you can

or

as many

grqups—professional buyers

IHC

WOfttO'S

CRCAftST

H£W$fAHR

t

Volume

185

5C10

Number

.

.

The Commercial and Financial Chronicle

.

(par 10 cents) to be offset} for
warrant to

a

unit

per

chase

subscription initially by

stockholders in units of 25 preferred shares and

common

purchase five

shares. Price—$25.50

common

(eaqh warrant will Entitle the holder to pur¬

share at any time prior to Dec. 31,
share). Proceeds—To repay mortgages, to
$1,312,500 of five-year 6% sinking fund debentures, and
for further acquisitions and working capital.
Under-4
writer—To be named by amendment.

from

—To repay bank loans and

other debt; and to purchase
equipment. Underwriters—Hemphill, Noyes & Co., New
York; and Dallas Union Securities Co., Dallas, Tex.
•

El

Dixilyn Drilling Corp., Odessa, Tex.

Dec.

Paso

$3)

14

Natural

filed

Co.

Gas

.<•

being

Pacific
shares

offered

Northwest
of

Pipeline

Corp.

stock.

The

basis

the

on

(par

of

which

has

14

Pacific

NEW
February 8

En

(Offering
'

*

Co
Corp.)

Boston

shares

Debentures

stockholders—to

to

■

328.630

underwritten
$171,750,000

11

(Monday)

February

be

by

The

First

Connecticut
(Offering

$1,250,000

Furman

Inc.)

Co.,

927,598

shares

Fuller

$12,281,100

Bonds

Class A Common
&

February

(Wednesday)

13

Eternalite, Inc

___Class A Common4
(Vickcrs

V

(Monday)

»

.Common

Webber, Jackson & Curtis and F. S.
as
dealer-managers) 819,000 shares.

(Exchange offer—Paine,
Moseley & Co. to act

Norfolk & Western Ry._„_,
lEquip. Trust Ctfs.
*> —
< Bids noon EST) $2,910,000
-

•

v

Electric

:

Trans-Canada Pipe

'

r

r'

.

r

(Lehman

1

Debentures

(Bids 11 a.m. EST) $30,000,000

v

,

Co._.-__;

Power

(Offering to

in United

EST)

noon

(Foster-Mann,

.

____

•

—.-Common

"

-

Co.)

&

11

(Bids

to

Becker

$1,399,840

&

(Bids

13

Clowes

stockholders—bids

to

March

February

150,000

shares

-

Barnwell

(Bear,

Bonds

Central

Inc.)

Stearns & Co.)

Republic

Co.

$745,300

First

25,000

Walker

&

Co.)

EST)

1,507,304

shares

Corp.

& Webster

Corp.)

Appalachian

Electric
(Bids

by

G.

'

,

-

Eastern Utilities

163,334 shares

20

Bonds

Co

invited)

California
(Bids

Central Electric &
(Paine,

■t

Gas

$37,500,000

PST)

a.m.

o

February 20

Bonds

Co

Edison

Public

Co
and

Stone

Securities

Co.)

930,000

Indianapolis Water Co
(Glore,

&

Forgan

Co.

Common

(Bids

Bonds

$250,000,000

invited)

.

100,000 shares

(Bids

be

to

April
Preferred

Bonds

invited)

(H.

Factors

(Bids

M.

Class A

Corp

Lyllesby & Cc. Inc. ) 200.000 shaies

February 25
(Offering

to

stockholders—to

Kidder, Peaoody

& Co.)

February 26

be

Alabama

by

,

Southern Indiana Gas & Electric Co
•

West

Penn

Bids

11

Electric

a.m.

EST)

(Qffering,lo stockholders—bids,noon

J

11

$14,500,000

EDT)

(Tuesday)

11:30

Debentures

a.m.

4

EST)

$15,000,000

General
Jan.

Aniline &

Film Corp., New York

A stock (no par)

1,537,500 shares of common B stock (par $1). Pro¬
the Attorney Geenral of the United States.
Underwriter—To be determined by competitive bidding

to

be

June

invited)

6

500,000

shares

(Thursday)

Merrill

11

a.m.

Brothers

and

Pierce,

Lynch,

Glore,

& Co. (jointly);
Beane and Eastman

Forgan

&

Fenner

No date has

(jointly).

set.

EDT)

$15,500,000

General Credit,

Inc., Washington, D. C.

subordinated sinking fund
with detachable warrant#
to 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.

Aug. 17 filed $2,000,000 of 6%

of America, Inc.

(letter of notification) 240,000

shares of common

cents) of which 86,610 shares are being
sold pursuant to outstanding warrants. Price—$1.25 per
share.
Proceeds — For additional discount department
stock

store

Bonds

Georgia Power Co
(Eids

Blyth & Co., Inc.; Kuhn, Loeb & Co.,

Prohable bidders:

Gob Shops

Common

Virginia Electric & Power Co
(Bids

EST) 528,000 sharea

South Washington St.,

14 filed 426,988 shares of common

Jan. 21

(Tuesday)

Bonds
Common

1115

debentures, due Sept. 1, 1971,

(Thursday)

Co

Gas

Bonds

Bonds

a.m.

June

$5,000,000

Co;_




Fuel

(Tuesday)

(Bids to be invited) $40,000,000

,

National

(Bids

Bonds

:
$6,000,000

EST)

a.m.

May 28

Common

underwritten

—

Dillon, Union Securities & Co.

$6,000,000

Co.

Power
(Bids

336,085 shares

Illinois Bell Telephone Co

£

11

May 9

(Monday)

South Carolina Electric & Gas Co

Office

(Thursday)

11

Mississippi Power Co

(Kidder, Peabody & Co.) $750,000

Hubshman

Inc.

working capital.

Lehman

(Thursday)

New Orleans Public Service Inc

(Thursday)

Elyria Telephone Co.__

Juices,

(letter of notification) 300,000 shares of common
Price—At par ($1 per share).
Proceeds — For

3

stock;'

been

February 21

to Texas

ceeds—To

& Telegraph Co

be

to

(Tuesday)

March 28

Common

Higginson Corp.)

26

American Telephone

shares

Inc

Common
about 612,300 shares

Co.)

&

sold

and

March

Hughes

*,ir|<-,

(Monday)

(Offering to stockholders—no underwriting)

Union

shares

Raffensperger,

250.000

(Lee

Dallas

__^

and

Morningstar, Nicol,

and

March 25

•»

Marion, Ind. Underwriter—Sterling Securities Co., Los
Angeles;'Calif.

Houston Lighting & Power Co

Class A
Co.

Debentures

$50,000,000

EST)

a.m.

shares

Webster

$1,750,000

Dixilyn Drilling Corp
&

11

89,322

invited)

Service Electric & Gas Co
(Bids

&

be

be

to

Fruit
Dec.

Common

Associates
may

-

Postponed.

$29,000,000

(Wednesday)

stockholders—Bids

Debentures

Curtis

Securities Corp)

Noyes

to

(Wednesday)

Webber, Jackson &

(Hemphill,

(Oflering

♦

to be offered

'

Southern

.

capital, etc., and from sale of debentures to Texas Indus¬
tries to retire a subordinated promissory note payable
to the latter firm.
Office—New Orleans, La.
Under¬
writers—Howard, Weil, Labouisse, Friedrichs & Co., New
Orleans, La.; Rauscher, Pierce & Co., Inc., Dallas, Texas;
and Russ & Co., Inc., San Antonio, Texas.
Offering—

by The
Webster

(Tuesday)

Power

be

March

H.

"

to

■

sale of units to retire short-term loans, and for working

Common
&

"

publicly in units of $500 of debenture*
remaining $500,000 of deben¬
Industries, Inc., which owns
about 75%
of Freiberg's outstanding common stock.
Price—To be supplied by amendment. Proceeds—From

$2,000,000

Stone

7

soon.

Machine Co.,

&

21

tures

Preferred

Stone

Gum

and 150 shares of stock; the

$250,000

and

and

March 19

shares

shares

Boston

Securities

_Class A

44,318

Corp.

(par 10
Proceeds—For investment.
Ltd., Palm Beach, Fla.

Inc., Greenwood, Miss.
'
(letter of notification) 5,000 shares of common
stock (no par). Price—$25 per share. Proceeds—To pay
past due bills and for working capital. Underwriter—
Lewis & Co., Jackson, Miss. »
.?

are

Bonds

Savannah Electric & Power Co
First

underwritten

be

Eoston

Securities Corp.)

$2,600,000

Inc.)

stockholders—to

to

share.

Freiberg Mahogany Co.
11 filed $2,000,000 of subordinated debentures due
1971 and 450,000 shares of common stock (par 10 cents),
•of which $1,500,000 of debentures and all of the stock

(Offering to stockholders—to be underwritten

Merchants Acceptance Corp._
(Offering

a.m.

Savannah Electric & Power Co
(The

Inter-County Telephone & Telegraph Co.__Common
•

per

Oct.

(Friday)

underwriting)

(No

Debentures & Common

Offshore, Inc

Bonds

Ford Gum & Machine Co., Inc..

-

•

(Tuesday)

19

♦->

$50,000,000

11

15

Inc.

"Fountain's

Jan.

Common

shares

146,160

Oswald,

&

$12,000,000

Co

Sperti Products, Inc._—___-Debentures & Common
(Smart,

Fund,

;ma<5{iin^s, JJnderwrJter—None.

(Wednesday)

Southern

$10,000,000

EST)

noon

.Common

Common

Co.)

Inc.)

Co.

_

b46,850 .shares*?

—Bbndl^

(Tuesday)

invited)

be

to

unit.

Inc. (3/15)
Dec. 18 (letter of notification) $250,000 of 6% first mort¬
gage bonds due 1962 to 1967, inclusive. Price—100% ol
principal amount. Proceeds—For machinery and work¬
ing capital. Office—Hoag and Newton Sts., Akron, N. Y.
Business—Manufacturing chewing gum and self-service

(Monday)

invited)

be

March

England Power Co._____
-.

Price—$5

Ford

Commonwealth Edison Co.-a.-.^—
(Bids

Danly Machine Specialties,- Inc.<________—Common
New

Growth

Offering—Expected

-

'

per

filed 2,UOU,000 snares of common stock

23

cents).

invited)

Light Co.il_I'll

Price—$115

expansion and general corporate pur¬

Underwriter—Frank B. Bateman,

Utilities Corp.——

Minnesota Power &

by

._

(Shearson, Hammill &

G.

Nov.
<

Equip. Trust Ctfs.
be

(Offering

Horner & Mason, Inc.)

Corp.

(A.

,

•

iOffering to stockholders—without underwriting)

shares

1,734.865

Arnold Altex Aluminum Co.__Preferred&Common
(Scott,

.

(Thursday)

to

March 12
Common

Hallgarten

Barden

/

$15,000,000

invited)

March

Public

(Monday)

(Offering; to stockholders—underwritten
■

Ctfs.
General

Co.

Anaconda

be

to

March 7

$263,750

Inc.)

February 18

Trust

$6,420,000

Corp?,

Security Electronics

-

(Bids

(Lids

February 15t (Friday)

;. •'

(Wednesday)

Southern Pacific Co..

(Thursday)
Equip.

(Bids

"'V

shares' "

about'40,000

Co.)

March 6

York, Chicago & St. Louis RR.

c'

Florida

..Common

As

For

Underwriter—None.

poses.

$15,483,400

Corp.)

Southern Counties Gas Co. of California——Bonds

States.

February 14
New

Boston

—

,

.

& Co.

Proceeds

stockholders—underwritten by

common

^

14

debentures and 10 shares of stock.

\

.

Stuart-Hall Co., Inc

Lines, Inc;
;
Debentures & Common*"

•
/
Brothers;, Stone

Weld
Wood,

invited) $16,000,000

——-..Preferred

First

(White

Webster Securities Corp.;
and
Nesbitt, Thomson & Co.,
Ltd.;
Gundy &
Co.,
Ltd.;
McCloud, Young, Weir &
Co., Ltd.; .and Osier, Hammond & Nanton, Ltd.) $112,500,000
White,

be

Lone Star Gas Co
The

Potomac

(Tuesday)

Columbus & Southern Ohio Electric Co.*.—--Bonds
to

Lowell Avenue,

debentures due Feb. 1, 1972, and 120,000 shares of com¬
mon stock
(par $1) to be offered to employees, custom¬
ers
and certain other individuals in units of $100 of

,

(Bids

Office—1916

Underwriter—None.

Dec.

549,324 shares

$900,000

Brothers)

England Electric System-

apartments.

Flick-Reedy Corp., Melrose Park, III.
28 filed $1,200,000 of 6% registered subordinated

Common

March 5
New

»

voting prefered stock. Price—At
Proceeds—For purchase of land

share).

per

lease

Corp., San Francisco, Calif.
filed 100,000 shares of common stock. Price—
At par ($10 per share). Proceeds—For construction of
manufacturing plant and to provide working capitaL
Underwriter—None. Robert E. Evju is President.

Common

(Offering to stockholders—bids to be invited)

non-assessable

Flakewood

(Friday)

4

B

($100

Nov.

Co.

Consumers Power

Kidder, Peabody &

Co., Haddonfield, N. J.

Enunclaw, Wash.

$1,000,000

Co.

March
'•

(Thursday)

1

—

(letter of notification) 40,000 shares of common

life

for

Daystrom, Inc. __JLLi___c
Debentures
(Goldman, Sachs & Co. and Rj. W. Pressprich & Co. $8,000,000
Mdrch

Underwriter

(par $1).

class
par

Transition Metals & Chemicals, Inc
(M. S. Gerbcr, Inc.) $500,000

><•.- v.

Jan. 15

$15,000,000

EST) $35,000,000

noon

V

it Fireside Neighbors, Inc.
(letter of notification) 100 shares of class A non¬
assessable, non-voting preferred stock and 100 shares of

_i_Preferred

Co._^

Power

Co.

$55,087,300

Corp.)

Gas Corp

--Debentures

Goldman, Sachs & Co.)

D.

Eos ton

February 28
Common

underwriting)

Tower Acceptance Corp.
(S.

United

stockholders—underwritten by Lehman

common

and

Electric

$60,000

Macy (R. H.) & Co., Inc.--;.
Brothers

First

The

(Bids

Light & Power Co

(Offering to

shares

Inc.__Debs.

(Oflering to stockholders—underwritten by Morgan Stanley &

v. •

Eternalite, Inc., New Orleans, La. (2/13)
Sept. 24 filed 200.000 shares of class A common stock
(par 50 cents).
Price—$4.50 per share. Proceeds—To
repay loan; for maintenance of and increase of inven¬
tory; for development of branch offices; and for research,
laboratory tests, and testing equipment. Underwriter—
Vickers Brothers, New York. Statement effective Jan. 8.

.-Common
442,114

underwriting)

v

„

Price—$5 per share. Proceeds—For ma¬
chinery, equipment, working capital, etc. Address—Air¬
port Circle, Route 38, Pennsauken, N. J. Underwriter—

(Wednesday)

Co

Gas

stockholders—no

:

Flo Corp.

14

stock

Common

stockholders—no

to

to

Consolidated Edison Co. of New York,

Potomac

Leslie Productions, Inc.__
(Alester G.

(Offering

(Dillon, Read & Co. Inc. and Johnston, Lemon & Co.)

Notes

(Merrill, Turben & Co. Infc.)

Natural

American

and

Aid Investment & Discount, Inc

Jan.

(extended

March 1

on

Arthur &

February 27
Common

1

(Offering to stockholders—no underwriting)

Petroleum

expire

will

Statement effective

Co., New York.

CALENDAR

(Friday)

Dayton Power & Light Co

Phillips

ISSUE

Northwest,

.•

Proceeds—Together with funds from the private
$1,250,000 first mortgage 4%% bonds, series B,
1987, to be used to repay bank loans and for con¬

due

accepted by holders of the required 2,435,000 shares of

(par $4). Price—To be supplied by amendment. Proceeds

*-•"•-:

struction program.

been

Jan. 28 filed 930,000 shares of class A convertible stock

Underwriter—None.

of

sale

8 shares of Pacific

offer,

8).
-

ment.

of

stocks

common

for each

stock

common

for

exchange

B

common

Northwest

(2/20)

in

'

41:

it Elyria Telephone Co., Elyria, Ohio (2/21)
Feb- ,1 filed 15,000 shares .of cumulative convertible, pre-,
ferred stock (par $50). Price-^To be supplied by amend¬

<

5,235,952 shares of common B stock

Feb.

Jan, 7,

Common

one

1957 at $2 per

:

(705)

(par 30

operation;

to increase the number

of stores; and

Continued

on

page

42

The Commercial and

Continued

jrom

establish

41

page

five super launderettes and for
working cap¬
Underwriters—Names to be supplied by amend¬

ital.

for working capital.
R. I.

Office—41 Stukely St., Providence,

/ ■
Gold Mountain Lodge, Inc., Durango, Colo.
23

Jan.

5,000 shares of class A voting common
$1), 295,000 shares of class B non-voting
common stock (par $1), ana $700,000 ol 4% debentuxc*
due Dec. 31, 1975, to be offered for sale in the States
stock

stock,

Colorado in

and

2,950

debenture.

shares

of

units

class

Price—$10,000

of

B

per

50

shares

of

and

A

$7,uuu
Proceeds—For pur¬

unit.

Operates year-round resort hotel.
Hamilton

new

Paper Co.,

machine, together with auxiliary
ment, at the Miquon plant; for additional capital
paper

Hancock
Nov.

19

Electronics

(letter

of

Corp.,

notification)

debentures due
nominations

Calif.

25

filed

406,638 shares of 50-cent convertible 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
ferred

be offered in exchange for Mount Vernon Co.
preferred
and common stock on the basis of
one Holly
series A
share for each of the
406,638 shares of Mount Vernon
preferred stock and
shares of Holly common stock
for each of the 305,204.52
stock.
Of the

mon

shares of Mount Vernon

remainder,

shares

to

are

be

offered

shares of Van Dorn Iron

six-for-one
offered

dors

to

of

to

210,000

certain

Works Co.

Holly

holders

com¬

common

of

35,000

stock

common

on

a

basis; 38,333 Holly common shares will be
finders, 60,000 shares to certain ven¬

certain

property;

1,016,595

shares

will

be

reserved

against conversion of preferred
stock; and the remain¬
ing 388,176 are to be reserved for possible issuance
at a
future

date in exchange

Iron Works

common

for 64-,696 shares of Van Dorn

stock.

Underwriter—None.

Hub Oil

Co., Denver, Colo.
Dec. 18 (letter of
notification) 290,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
To buy
leases; for exploration and drilling. Office—
413 First National Bank
Bldg., Denver, Colo. Under¬
writer—Skyline Securities, Inc., Denver, Colo.
it Hubshman Factors Corp., New York
(2/21)
Feb. 1 filed 200,000 shares of
class A stock (par

Price—To

$1).
Proceeds—To

be

supplied by amendment.
M. Hubsnman,
President, who is tne selling
stockholder.
Underwriter—H. M. Byllesby & Co.. Inc..

Henry

New

York

and

Chicago.

★ Illinois Bell Telephone Co.
(2/26)
Feb. 6 filed
$40,000,000 of first mortgage bonds, series
E,
due March
1, 1988. Proceeds—To repay short-term bor¬
rowings and for construction
program. Underwriter—To
be determined
by competitive bidding. Probable bid¬
ders: Halsey, Stuart &
Co. Inc.; Morgan
Stanley & Co.;
Kuhn, Loeb & Co.; Glore, Forgan & Co. and
Eastman
Dillon, Union Securities & Co.
(jointly). Bids—Expected
to be
received

on

Feb. 26.

* Indianapolis Water
Co., Indianapolis, Ind. (2/20)
filed 250,000 shares of
common stock
(par $10).
Price
To be supplied
by amendment. Proceeds—To
selling stockholders.

Jan. 31

—

Underwriters—Glore, Forgan & Co.
York; and Raffensperger, Hughes &
Co., Indian-'
apolis, Ind.

New

it Inter-County Telephone &
Telegraph Co. (2/19)
Jan. 31 filed
25,000 shares of common stock
(par $12 50)
Price—To be supplied
by amendment. Proceeds
For
reduction of accounts
payable and for payment of a
portion of the company's 1956
taxes due in 1957. Office
—Fort Myers, Fla.
Underwriter—Central Republic Co.

15

be

to

and

International Bank

Sept^28 filed $1,000,000
and D.

of

Co., Washington, D. C.

Proceeds—

Underwriter—Johnston,

Lemon &

CorP-» Des Moine^, Iowa

Nov. 29 fded 370,000 shares
of common
cents), of which 185,000 shares are
to be

Equity Corp.
Equity Corp.

on

a

share-for-share

common

sl.Nck
(par 10
offeiM by The

basis in exchange for
the remaining

stock, and
135,000
shares by Financial
General Corp. on a basis of
1%
shares of International
common stock in
exchange for
one snare of
Financial common stock.

cial

are

tional

to

receive

common

the

stock

in

Equity and Finan¬

185,000 shares

exchange for

each

all

of

the

Interna¬
outstand-

®™res of common stock of Investors

j

«!?
that iTnJqUu^eS| *nrC' ^n^rnational
142,000 shares of
t

Financial Corp.
has been informed

Equity common owned by Fre¬
Corp. will be tendered in
acceptance of the Equity
exchange offer. Underwriter—None.
mont

international Duplex
Corp., San Francisco, Calif.
Dec. 21 filed 500,000
shares of common stock
(par one
cent).
Price
$1 per share.
Proceeds—To equip and




filed

263,048 shares of

holders

for

of

of Ramie Corp. and
Corp. in exchange for common
corporations on the basis of one share of

each

five

shares

Proceeds—To

of

selling

South

one

share of Midland

Canada

stockholder.

stock.

common

Underwriters—A.

J.

Graysort & Co., Inc., New Yorx, N. Y.; A. J. Grayson &
Co. of New Jersey, Inc.,
Newark, N. J.; and A. J. Gray¬
of

son

Maryland, Inc., Baltimore, Md. Statement

withdrawn.
„

of 6%

Mineral

Projects-Venture F, Inc., Madison, N. J.
Dec. *14*'filed $2,500,000 of
Participations in Capital as
Limifed" Partnership Interests. Price — In $25,000 units.
Proceeds
To acquire leaseholds and for
drilling of
initial or exploratory wells. Underwriter—Mineral
Proj¬
ects
£6., jLtd., Madison, N. J. 1
kJ

15-year
(in de¬

amount

—

stock

common

subscription

certain

Minerals,

by

lune .22

(par $1)

outstanding stock purchase

York

of common stock (par
Price—$1.50 per share. Proceeds—To acquire
$2,400,000 the Chavin lead-zinc-copper-silver mine

for

war¬

New

2,500,000

shares

cent).

me

stockholders

common

Inc.,

tiled

Price—$3.25

York^ffering—Postponed.

per

share.

warehouse and any

a

Proceeds—To
stores that

new

equip

and

stock

be acquired.

may

Colo.

ver,
•

filed

30

shares

of

(by

common

Fund,

stock

additional

an

(par $1).

Price

Proceeds—For investment.

per share.
Proceeds—For completion of plant,
provirte for general creditors and for working capital.

Officfe^=-Jackson, Miss.
be made

Mass.

sfoelg JPrice
working

market.

•

■

Lehman Brothers,

Blyth

—

&

lege).

(with

Macy

(R.

H.)

&

Co.,

Inc.

Co.,

Inc." and

Underwriters—J.

14

shares

of

and its

Brothers and

cumulative

convertible

par

$10, and

one

cent at

of

one

$11

McRae

one

Rare

sinking

unit). Price—$3

per

and

one

basis <of

Pine

Worcester,

common

stock

by class A
on

the

maximum

a

(no

common

basis

of

par)

primarily

loan

offices

acquire
&

of

to

44,318

be

new

on

for

March 5.

expand

company's

additional

offered

share

Proceeds—For
to

shares, of
for

offices.

each

in

subsidiaries

or

to

k.

due

1976.

Proceeds—To

pay

tures

•

con¬

principal amount.
Proceeds—For working
capital,, to finance expansion of
Northern Appliance Stores,
Inc., a subsidiary, and for
other corporate purposes.
Underwriters—A. J.
Grayson

Co.,

Inc., New York, N. Y.; A. J. Grayson & Co. of
New Jersey,
Inc., Newark, N. J.; and A. J. Grayson &
Co. cf Maryland,
Inc., Baltimore, Md. Statement with¬
drawn.

stock

Equitable Securities Corp., Nashville,
York, N. Y. Offering — Indefinitely

\—

...

Brunswick

Proceeds—To

Electric

Power

be

Gas
for

offered

&

in

Electric

each Lynn

Jackson

&

be

advanced

to

Commissiop to

The

New

repay

Bruns*-

bank

loans.

.

exchange

Co.

on

the

for

capital

basis

of

stock

two

(par
of

NEES

$1)

Lynn
shares

share.' Dealer-Managers—Paine, Webber,
and F. S. Moseley &
Co., both at

Curtis

Boston, Mass.

•

common

New England Electric System (2/13)
3 filed 319,000 shares of common stock

to

38

Halsey, Stuart & Co.
Blyth & Co., Inc.
Bids—Three bids were received on
Aug. 1, all for 4%s, but were turned down.
Reoffering is
expected sometime during the first six months of 1957.

and

Insurance Co.

flied 50,000 shares of class A

Dec.

Walker

Underwriter—To be

company

Underwriter—Halsey, Stuart & Co. Inc., New York and
Chicago. Offering—Temporarily delayed. -

be

off short term bank

Co., Buffalo, N. Y.
shares of common stock (par $1)
the company's restricted common

14 filed

ment.

open * or

Midland Commercial
Corp., New York
Dec. 28 filed $480,000 of
10-year 7% subordinated
vertible debentures.
Price—100% of

Price—$8

Office-^-314

(Province of)
*
$12,000^000 of 25-year sinking fund deben¬
due Jan. 1, 1982. Price—To be
supplied by amend¬

Dec.

shares

bidding^ Probable bidders:
Inc.; The First Boston Corp.;

&

under

New

and

New

Co., New York, N. Y., and St. Louis, Mo.

bonds

i955

Underwriter

A

Michigan Wisconsin Pipe Line Co.
July 2, 1956 filed $25,000,000 of first mortgage pipe line
loans and for construction
program.
determined by competitive

offered

Tenn.,

15, 1957

capital, to
the existing

Underwriter—G.

capital.

Underwriter—None.

option plan for key employees of the

postponed.

Price—To be supplied

business

shares held.

(par $2$ and 50,000 shares of class B -common stock
(par $2). Price—To be supplied by amendment: Proceeds
—To selling stockholders. Office — Little
Rock, Ark.

to

Mass.

working

100,000

National Old Lino

subscription
three

Gypsum

filed

Nov. 15,

For

class

stockholders of record Feb.

one

heldJ rights to expire
amendment.

of

seven

subsidiaries.

wick

filed

'

.

(2/19)
Jan. .30

be

to

its

stock,
stock, par
unit, consisting
—

28

stock

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.
it Merchants Acceptance Corp.,

share for each

it National

Corp. 6%

Proceeds

,

-

Proceeds—For working

St., Spartanburg, N. C.

Jan.

common

warrant.

,

Underwriter-r-None.

one

share.

per

preferred

per

Underwriter—Lee Hig-.

stock

thereof

Minerals

fund

share of Idaho Rare

share

holder

for

Fidelity Insurance Co.;
Nov. 30 (letter of notification) 33,000 shares of common
stock (par $1.25) to be offered to stockholders on the

Tungsten Corp., Boise, Iclaiio
Nov. 30 (letter of notification)
100,000 shares of common
stock (par one cent) and
100,000 stock purchase war-,
entitle

sold

National

McRae

(each two warrants to
purchase one share of Idaho

be

subsidiary pursuant to

Boise, Ida.

H.

Goldman, Sachs & Co., both of New York.

rants

to

an employees' stock pur-,
Price—At the market, less $2 on the various
11, 1957 and Dec. 10, 1957. Proceeds
—To reimburse company, in part, for cost of
purchase
of stock necessary for this plan. Office—319
Broadway,

Underwriters—Lehman

purposes.

are

be

between Feb.

dates

held; rights to expire on Feb. 25, 1957. Price—To be
supplied by amendment. Proceeds—For working capital
and general corporate

Price—To

chase plan..

(2/11)

$100 of debentures for each

■

(par $1), of
company's ac¬

it MorrSson-Knudsen Co.; Boise, Idaho. *.•*• \Jan. 29 (letter of notification) 7,692 shares of common
stock (par $10) to be offered to employees of
company

18 filed
$12,281,100 of convertible subordinated de¬
bentures due Feb. 1, 1977, to be offered for
subscription
by common stockholders of record Feb. 8, 1957 on the
of

(2/20)

v

Jan.

basis

For

—

Underwriter—None.

N. J.,, and for working capital.
ginson .Corp., New York.

oversubscription privi¬
by amendment. Proceeds

surplus.

capital.

common

Proceeds

selling stocknoldsupplied by amendment.- Proceeds—
For construction of plants in California and
Hawthorne,

Boston, Mass., and Thornton, Mohr
Farish, Montgomery, Ala.

&

At par ($5 per share).

whi(HL7.7y858 shares

an

Price—To be supplied

increase capital and
Goddard & Co., Inc.,

\

count and 22,142 shares for account of

both of New York.

—To

agents.

Morningstar, Nicol, Inc., New York

ers.

Loyal American Life Insurance Co., Inc.
Sept. 28 filed 230,000 shares of common stock (par $1)
to be offered for
subscription by common stockholders
of record Oct. 15, 1956 at the rate of one new
share for
each three shares held

own

Jan. 29-flked 100,000 shares of common stock

(no par)
being offered for subscription by common stockholders
of record Jan. 24,
1957, on the basis of one new share for
each ten shares held
(with an oversubscription priv¬
ilege); rights to expire on Feb. 11, 1957. Price—$23.50
per share.
Proceeds—To repay bank loans and for new
Underwriters

Underwriter—None, offering to

through company's

it Moohey Aircraft, Inc., Kerrville, Texas
Jan. J,5.(letter of notification) 60,000 shares of

Louisville Gas & Electric Co.
(Ky.)
Jan. 3 filed 330,000 shares of common stock

construction.

corporate

Inc., New

Price^$3

200,000

At

—

Otis,

1,600,000 shares of capital stock (no par), of
708,511 shares are subject to an offer of rescission.

which

Inc., Boston,

amendment)

&

Mississippi VaSley Portland Cement Co.

Productions, Inc. (2/11-15)
Jan. 14 (letter of notification) 30,000 shares of common
stock (par $1). Price—$2 per share. Proceeds—For
spe¬
cial building, equipment and for
working caphal. Onice
—Columbia, S. C.
Underwriter—Ales«.er
G.
Furman
Co., Inc., Greenville, S. C.
it Loomis-Sayles Mutual

Gearhart

—

Dec. 26 filed

"

Leslie

Jan.

Underwriter

purposes.

Underwriter—Peters, Writer & Christensen, Inc., Den¬

used

of time certificates, series B, C

Price—At 100% of
principal amount.

For working
capital.

C.

19

stockholders

locatedjih South Central Peru, and for general

by

Washington, D.

to

Midldn&Tor each Ramie share and
for

of

offered

—

Inc., Chicago, 111.

(par

Uranium

rants on the basis of one share for each share
held, or
for each share subject to purchase under such warrants.

Redwood City Calif.
300,000 shares of com¬

Holly Corp., New York
Jan.

face

stock

cemmon

.

Jan.

Co.,

Road, Redwood City,
Underwriter—Daniel Reeves & Co., Beverly Hills,

At

—

of

...

stock.

Calif.

Price

stockholder)

South Canada
stock~of those

King Soopers, Inc., Denver, Colo.

Price—At par ($1 per share). Proceeds—For
research and development. Business—Closed
circuit tele¬
vision.
Office—2553 Middlefield
mon

1972.

shares

par to

ing

California Ave.,

Wash.

expen¬

&

common

(estimated at

$1,000 each). Proceeds — For additions
and improvements.
Office—139 W. Second Street, Ju¬
neau, Alaska.
Underwriter—Grande & Co., Inc., Seattle,

equip¬

ditures and working capital.
Underwriter—Stroud
Inc., Philadelphia, Pa.

23,500 shares of

Price—Ai market

it Juneau & Douglas Telephone Co.
Jan. 24 (letter of notification)
$295,000

Underwriter—None

Miquon, Pa.
Jan. 2 filed 108,160 shares of common stock
(par $5)
being offered for subscription by common stockholders
of record Jan. 25, at the rate of one new share
for each
two shares held; rights to
expire Feb. 8. Price—$29 per
share.
Proceeds—Together with proceeds from a new
$1,500,000 loan from an insurance company, to purchase
a

(letter of notification)

(par 33Mi cents).

derwriters—McLaughlin, Cryan & Co. and Gearhar* *
Otis, Inc., both of New York. Offering—Date indefinite.

chase of property, remodeling of present main
building,
for new construction and
working capital. Busine&a—

J; of which 52,500 shares

187,500

are to be offered for cash
certain individuals, and the remaining 135,000
shareware to be offered' by Albert J. Grayson (controll¬

Jacobs (F. L.) Co.
Oct. 4 filed $3,000,000 of 6% convertible debentures due
Nov. 1, 1966. Price—100% of
principal amount. Proceed*
—To pay short-term loans and for
working capital. Un¬

one

stock

class

Corp., New York

28" filed

at

selling security holders. Office :— 531
Bakersfield, Calif. Underwriter—None.

(par

of Texas

23

stock

filed

Midland Commercial

cents

it Intex Oil Co.

N. Y.

Thursday, February 7, 1957

...

Dec.

ment*

Underwriter—Bruns, Nordeman & Co., New YorK,

Aug.

•

financial Chronicle

*■""

New

England Power Co.-(2/18)
Jan. 15 .filed $16,000,000 of first mortgage
bonds, series
G, due 1987.
Proceeds—To repay bank loans and for
construction.

new

Underwriters—To be determined by
bidding. Probable bidders: Halsey, Stuart
Inc.; Kuhn, Loeb & Co., Salomon Bros. & Hutzler,
Eastman
Dillon, Union Securities
Co. and Wood,

competitive
& Co.

Struthers

&

Co.

(jointly); Lehman Brothers; The First

Boston Corp.; Equitable Securities Corp.; Mterrill
Lynch,

Pierce, Fenner & Beane, Kidder, Peabody & Co. and
White, Weld & Co. (jointly). Bids—To be received up to
noon
(EST) on Feb. 18 at 441 Stuart Street, Boston 16,
Mass.
New York
•Jan.

24

filed

Shipbuilding Corp., Camden. N. J.
211,254 shares of

Price—To be related to the

common

stock

v

(par $1).

prevailing price on the New
Exchange at the time of sale. Proceeds—To
Merritt-Chapman & Scott Corp., the selling stockholder.
YTork Stock

Underwriter—None.

o

Volume

185

Number

5610

.

.

The

.

Commercial and Financial Chronicle

Nic-L-Silver Battery Co., Santa Ana, Calif.

:

Dec. 27 filed 75,000 shares of 5% cumulative
participat¬
ing preferred stock and 7,500 shares of common stock.
Price—At par ($10 per share). Proceeds — To

liquidate
a bank loan of $178,635; increase inventories; and for
working capital and general corporate purposes. Under¬

r

writer—None.

it Northern
Jan.

31

Illinois Gas Co., Aurora, III.
1,000,000 shares of common stock (par $5),

filed

which

will

of such

constitute

stock

the

issuable

on

maximum

number

conversion

of

after Jan.

shares

31, 1957

of

100,000 shares of 5% convertible preferred stock (par
$100).
,

.

Ohio

Edison Co.

Jan.

3 filed 580,613 shares of common stock
(par $12)
being offered for subscription by common stockholders
of record Jan.
31, 1957 at the rate of one new share for
each 10 shares held (with an
oversubscription privilege);

'

rights to expire on Feb. 15, 1957. Price—$46.50 per share.
Proceeds—For additional investment in common stock
of

Pennsylvania Electric Co.,

struction

program.-

award

won

Ohio

subsidiary, and for con¬
White, Weld & Co.

a

Underwriter

of this issue

—

Jan. 30.

on

;

,

—For exploration, development and operation of oil and
gas

of

★ Refrigeration

loan on additional commercial paper. Office — 7360
Castor Ave., Philadelphia 15, Pa. Underwriter—None.
Samson

Uranium, Inc., Denver, Colo.
(letter of notification) 25,000,000 shares of capi¬
Price—At par (10 cents per share). Proceeds
—For core drilling, including geological research and
core
assays; for mining shaft; to exercise purchase of
option agreement on additional properties; tor working
and

other-corporate

(jointly); Harriman Ripley
Co., Inc. and Stone & Webster Securities Corp. (joint¬
ly); Lehman Brothers. Bids—The two received up to 11

&

(EST)

Oct,

on

30

rejected.

were

,<£ Okaw Land Development Co., Vandalia, III.
Jan. 29 (letter of
notification) 3,000 shares of common
stock.
Price
At par ($100 per share).
Proceeds
To
purchase additional farm land, farm machinery, clear
—

„

land

and for

Mining; Corp., Montreal, Canada
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
15

filed

—

Underwriter—To

costs.

be

later.

named

Michael

Tzo-

panakis, of Miami, Fla., and Denis Coiivas, of Montreal,
Canada, are large stockholders.

it Paradox

Electronics

general

oil and

corporate

Business—To

purposes.

develop

properties.

gas

Underwriter—Market Securities,
Inc., Salt Lake City, Utah.

Phillips Petroleum Co.

Jan;\16

filed

debentures

$171,750,000

due

1987

to

stockholders

common

(2/8)

of

design of

be

of

for

offered

record

Feb.

7

subscription
on

the

by

basis
20

of

shares

held; rights to expire on Feb. 25, 1957, ^Price—
supplied by amendment. Proceeds — To repay about
$86,000,000 of short-term bank loans and for other cor¬
be

purposes.
•

Underwriter—The First Boston

.

Jan.

9

stock

Finance

Corp.,

Co.

share). Proceeds—To

selling stockholder.
Office
1400 National Bank Bldg., Detroit
26; Mich.
Underwriter—Troster, Singer & Co., New York, N. Y.
a

—

Plastic Wire & Cable
Corp. Dec. 27 (letter of notification) 14,514 shares of common
stock (par $5)
being offered to stockholders of record
Dec. 17, 1956 on the basis of one new share for each 12
shares

held; rights to expire on Feb. 8. Price—$16.50
share. Proceeds—For expansion and additional work¬

per

ing capital.
Office—East Main. St., Jewett City,
Dealer-Manager—Putnam & Co., Hartford, Conn.
•

Potomac

Electric Power Co.

Conn.

(2/13)

Jan. 18 filed $30,000,000 of debentures due Feb.
15, 1982.
Proceeds—To redeem presently

outstanding

stock and

Ave., New York.

repay bank loans.

units;

purposes.

writer—None.

Underwriter—Foster-

• Swift

Feb.

Socony Mobil OUxCo., Inc.
Jan.

10 filed 4,379,758. shares of capital stock (par $15)
being offered for subscription by stockholders of record
Jan. 30, 1957 oirthe basis of one new, share for each 10
shares held; rights to expire on Feb. 19, 1957.
Price—

$45.50

Nov.

Underwriter—To be deter¬

Theatrical
Oct.

(2/19)

and

to

Probable

help

finance

construction

bidders:

Halsey,

Securities Corp.
(jointly); Kidder,
Peabody & Co., White, Weld & Co. and Salomon Bros.

(jointly); Harriman Ripley & Co. Inc.
11

a.m.

(EST)

931, 929 E St., N.W., Washington
•

Potomac

Jan.

Feb.

Bids—

13 at Room

4, D. C.

Power Co.

(2/27)
Shares of preferred stock, series of
Price—To be supplied by amendment.

filed 300,000

18

1957

Electric

on

(par

Proceeds

$50).
—

For

construction

program.

Underwriters

—

Dillon, Read & Co. Inc., New York and Johnston, Lemon
& Co,, Washington, D. C.

'

it Profile Mines,

Inc.
(letter of notification)

Jan.

28

mon

stock.

—For

Idaho.

5.03G,009 shares rf

com¬

Price—At par (10 cents psr share).

mining

expenses.

Proc ,eds
Office 1502 Heron Street, Boise,

Underwriter—None.

$

Counties

^Southern

Gas

Co.

of California

Title

(3/6)

Nov.

Feb. 4 filed $15,000,000 of first mortgage bonds, series B,
due 1982. Proceeds — To repay indebtedness to parent,

for

working

capital.

Underwriter—E.

L.

per

share.

Business—Tele¬

Aaron

&

Co., New

York.
«•

,

A

Raymond Oil Co., Inc., Wichita, Kansas
j t
Jan. 29 filed 200,000 shares of common stock „^par 25
cents). Trice—To be supplied by amendment. Proceeds




(par 10 cents).

Price

75

—

com¬

cents per share.

Guarantee

21

which

inventory, working capital, etc.' Business

filed

Trust

&

Co., New York
capital stock (par $8) of
being offered for subscription

61,902 shares of

35,750

shares are

Co. ipr • White, vteld & Co.; The First
Corp.; Blyth & Co., Inc,; Merrill Lynch, Pierce,
Fenner & Beane.
i>ius— Aeuuanvei/ expected to be re¬

1957; rights to expire
remaining 26,152 shares are being
offered, together with cash, in exchange for stock of
Abstract
&
Title
Insurance
Corporation of Buffalo,
Rochester and Lockport, N. Y., on the basis of $15.25 in

ceived

March

on

cash

6.

Gas & Electric Co. (2/26) *
first mortgage bonds due March
Proceeds—To repay bank loans and for con¬
struction program.
Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Equitable Securities Corp.; Kuhn, Loeb & Co.
and Salomon Bros. & Hutzler
(jointly); Blair & Cc.
Incorporated; Kidder, Peabody & Co.; Eastman Dillon,
Union Securities & Co.; The First Boston Corp.; White,
Weld & Co. and Shields & Co. (jointly). Bids—Tenta¬
tively expected to be received up to 11 a.m. (EST) on
Feb. 26 at offices of Commercial Services, Inc., in New

tive

1987.

Dec.

filed

7

486,000

inc.,

Atlanta, Ga.

.

375,000

shares

before

are

be

to

are

or

Southern

Dec.

5

or

Southern

Aug.

Price—$5

stock

Allied

Investment

(2/11-15)

per

(par
share. Proceeds—For working capital.
Underwriter—S. D. Fuller &Xo,

$75,000,000
1986

due

Ltd. (2/13)
(Canadian) of subordinated
shares of common
to be offered in units of $100

and

3,750,000

(par $1-Canadian)
shares of stock.

Price—$150

per

In Canada: Nes-

Thomson

McCloud.

will

be

in

offered

the United

States.

Trans-Gulf Offshore

Drilling, Inc., Houston, Tex.
700,000 shares of common stock (par 25

filed

24

Price

cents).

—

charges,

gency

$2

platform;

drilling

etc.

Proceeds — For mobile
escalation and contin¬
Underwriter—Dallas Rupe & Son,

per

share.

reserves

for

Inc., Dallas, Tex.
Transition
Jan.

filed

22

Metals & Chemicals,

1,615,500

shares

of

Inc.

(3/1)

common

stock

and

1,126.500 common stock purchase warrants, of which
250,000 shares of stock and 250,000 warrants are to be
offered

publicly in units of one common share and one
unit. Proceeds—For construc-

warrant. Price—$2.01 per
.

tion

of

plant

and

other

facilities;

working capital. Office—Wallkill,

Corp. Price—$2 per share. Pro¬
purchase of stock of Capital and Allied firms
and for purchase of U. S. Government bonds. Under¬

effec¬

& Co. Ltd.; Wood, Gundy & Co. Ltd.;
Young, Weir & Co.. Ltd.: and Osier. Ham¬
mond & Nanton, Ltd. About $31,250,000 of the securities
bitt

M. S.

of

the
Feb.

acquire

Statement

Securities Corp. and White, Weld & Co.

Canada

(par $1),
of which 211,681 shares are to be offered publicly 238.954
shares are to be offered in exchange for the class A
stock of Capital Fire & Casualty Co. and common stock

of
on

unit. ^ Proceeds—For new construction. Underwriters—
In United States: Lehman Brothers, Stone & Webster

Jan.

Ala.

85%

Proceeds—To

of debentures and five

24 filed

Anniston,

least

Trans-Canada Pipe Lines,

debentures

a

12 filed 450,635 shares of common stock

at

offer will expire

share.

per

Acceptance Corp.

Nov^ 26/ filed

Inc.
notification) $130,000

Southwide Corp.,

Sept.

acquires

Underwriter—None.

Office—Houston, Tex.

t

Underwriter—None.

in

New York.

shares of common stock, of which
be publicly offered and 111,300
on
exercise of options td be

Union Oils Ltd., Toronto,

share for each

17.

$1).

series A regis¬
tered
convertible debentures due Feb.
1, 1967 to be
offered first to stockholders for a 14-day period; then
to the public.
Price—90% of principal to stockholders;
and at par to the public. Proceeds—For expansion of its
present activities in the real estate and mortgage field.
Office—1206 Citizens & Southern Bank Bldg., Atlanta,
Ga. Underwriter—Allied Investment Co., Atlanta, Ga.
of

Price—$14
stock.

Tower

Syndicate,

(letter

new

Dec. 7 filed 200,000 shares of class A common stock

to

31, 1956).
establish

one

22,

share of Title Guarantee stock

a

The purchase

tive Dec.

reserved

Dec.

buy

Jan.

company

Abstract

Price—$3 per share. Pro¬
complete sporting goods
house; other expansion and inventories. Underwriter—
Investment Underwriters, Inc., Atlanta, Ga.
Philip H.
Dohn, Jr., and Roger H. Bell, sole stockholders of the
underwriter, are officers and
directors of Southern
Sportsman, Inc.
on

ceeds—To

latter

if

1957.

28,

•

Sportsman,

4/10ths of

Abstract stock.

York City.
Southern

and

of

as

The

19.

exchange for each share of Abstract.
The subscription
offer to Title Guarantee stockholders becomes effec¬

* Southern Indiana
1,

Feb.

the basis of

on

efght shares held

on

Feb. 1 filed $5,000,000 of

Proceeds—To retire $125,000 of outstanding 15% deben¬
as well as a $173,180 debt to Trans-Union Produc¬

and

manage¬

Underwrifer—None. V

by stockholders

Lighting Corp. (about $9,200,000) and for con¬
struction and expansion program.
Underwriter—To be
determined by competitive bidding. Probable bidders:

tures

releases.

Pro¬

par.

entertainment

Pacific

holders.

Inc.;

and

closed-end

Proceeds—For

20,000 shares issued to underwriter.

vision

five

—Electrical heating. Office—26 Avenue B, Newark, N. J.
Underwriter—Eaton & Co., Inc., New York.
^ r

750,000 shares of capital stock (par $1).
Price—64% cents per share. Proceeds—To selling stock¬

tions,

stock

mon

Corp. and Dean Witter & Co. (jointly); Blyth
Co.^ Inc.; Kuhn, Loeb & Co. Bids—Tentatively ex¬
pected to be received up to 8 a.m. (PST) on Feb, 19.

Pyramid Productions, Inc., 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
Price—$5

theatrical

in

June

granted to employees of the company (latter exercisable

and

Webster

be received up to

shares'; of class B, expected at

investment

Business—A non-diversified

Thermoray Corp.
29 (letter of notification) 380,000 shares of

program.

by competitive bidding.
Stuart & Co. Inc.; The First

Co.

To

City

Plan, Inc., New York
shares of class A stock (par

52,000

ment investment company.

be determined

Brothers, Eastman Dillon, Union Securities

& Hutzler

Interests

filed

30

fields.

22 filed $37,500,000 first and refunding mortgage
bonds, series H, due 1982. Proceeds — To repay bank

loans

com¬

Proceeds—

cents) and 28,000 shares of class B stock (par five cents).
Price—Of class A, expected at $10 per share in lots oi

Jan.

Underwriter-r-To

Price—$2.50 per share.

Texas.

ceeds—For
Co.

shares

Halsey,

&

(par $1).

not less than 25

Edison

Lehman

&

stock

pay
bank loans, financing of time payment sales
appliances and air conditioners and for working
capital.
Underwriter—Franklin Securities Co., Dallas,

Underwriter—Kidder, Peaoody &

California

Southern

Corp., Clarksville, Texas
notification) 120,000 shares of

of

Co., New York.

mined by competitive bidding. Probable bidders:
Stuart & Co. Inc.; The First Boston
Stone

Fuel

(letter of

To

it South Carolina Electric & Gas Co. (2/25)
336,085 shares of common stock (par $4.50)
to be offered for subscription by common stockholders
of record about Feb. 25, 1957 on the basis of one new
share for each 10 shares held (with an oversubscription
privilege); rights to expire on or about March 11,1957.
Price—To be supplied by amendment.
Proceeds—For

preferred

Corp.;

29

mon

|

construction program.

filed

Texas

Proceeds—For exploration and devel¬
for plant expansion.
Underwriter—
Morgan Stanley & Co., New York.
and

costs

1

sidiaries.

share.

per

opment

&

Co., Chicago, III.
17,935 shares of common stock (par $25) to
be issued upon exercise
of options issued under the
company's Stock Option Plan for officers and other key
employees of the company and its wholly-owned sub¬

Mann, Inc., New York.

Boston

$

(letter of notification) 12,000 shares of cpmmon
(par $1). Priced—At market (estimated at-$3.37V2

to $3.87% per

Price—At 100% of principal amount (in
of $1,850 each).
Proceeds—To retire a
$55,000 mortgage; and erect new clubhouse, etc. Under¬
denominations

Halsey, Stuart

jp

„

Pioneer

working capital and general corporate

•.

of the Club.

ers

improved model of the Security

an

■

&

subordinated

.of stock

New York.

(2/15)

(letter of notification) 263,750 shares of common
(par five cents). Price—$1 per share. Proceeds—

stock

Ky.

Boston

*

.

convertible

$100 principal amount of debentures for each

porate

Corp.

Louisville,

Sunset Country Club, Snappington, Mo.
Dec. 26 filed $643,800 of 1% first mortgage bonds due
Dec. 1, 1986, to be offered for subscription by stockhold¬

Jan. 11

Production

Corp., Salt Lake Citv, U*ah
Feb. 4 filed 1,000,000 shares of common stock
(par $1).
Price—$1.25 per share. Proceeds—For drilling test wells
and

Inc.,

Feb. 4 filed

Underwriter—None.

Orefield

Oct.

—

"

—

seed.

Proceeds—For
general
corporate purposes,
including
working capital and for redemption of any unexchanged
preferred stock. Underwriter—Smart, Clowes & Oswald,

Corp. of Indianapolis, Ind., for
offering to residents of Indiana.

Security

stock

54,530

unit for each 10 shares of preferred stock. The remain¬
ing $200,000 of debentures and 4,000 shares of common
stock are to be publicly offered.
Price—$100 per unit.

State Securities

and for

a.m.

Underwriter

purposes.

of

are
to be offered first in exchange f^r
outstanding shares of 5% cumulative con¬
vertible preferred stock (par $10) at the rate of one new

the

tal stock.

Office—589 Fifth

and Salomon Bros. & Hutzler

shares

Aug. 21

Sept. 20 filed 60,000 shares of cumulative preferred stock

able bidders; The First Boston
Corp.; Blyth & Co., Inc.;
Kuhn Loeb & Co.; Eastman
Dillon, Union Securities & Co.

Sperti Products, Inc., Hoboken, N. J. (2/18-21 )|
29 filed $745,300 of 6% debentures due March 1,
1972 and 14,906 shares of common stock
(par $1) to be
offered in units of a $100 debenture and two shares of
stock, of which $545,300 of the debentures and 10,906
Jan.

to

Indiana

selling commission will be allowed
Elvin C. McCary,

a

for sales effected by them.

Anniston, Ala., is President.

•

(letter of notification) 33,350 shares of common
stock (par $1) and $50,025 of 6% debenture bonds due
May 1, 1965. Price—Of stock, $1.50 per share; of bonas,
at par ($75 per unit). Proceeds—For expansion
purposes

(par $100),

*

Finance Co.

Jan. 31

Check Register (now in use); to purchase 500 such

Proceeds—For construction program. Under¬
writer—To be determined by competitive
bidding. Prob-.

to dealers

Tex.

To complete

r

Power Co.

writer—None, but

*

properties. Underwriter—Perkins & Co., Inc., Dallas,

capital

43

(707)

for equipment; and
N. Y. Underwriter—■

Gerber, Inc., New York.

Tri-State

Rock

Material

Corp.,

Leesburg,

Va.

convertible
preferred stock. Price—At par ($1.50 per share). Pro¬
ceeds
For asphalt plant, equipment, working capital
Nov. 28 filed

500,000 shares of 6% cumulative

—

and other corporate purposes.

Underwriter—None.

ceeds—For

Continued

-

f

on

vaae

44

{Wt>)

n

The Commercial and

Financial Chronicle

The Commercial and Financial Chronicle

<708) ;

Continued

& Telegraph Co. (3 26)
authorized a new bond issue of

American Telephone

from page 43

Dec.

directors

the

19

$250,000,000. Proceeds — For additions and improve¬
Underwriter—To be determined by competitive

[

Thursday, February 7, 1957

...

.

.

Thursday, February 7, 1957

.

Co.

Inc.; The First Boston Corp.; Blyth & Co., Inc.; Dil¬
lon, Read & Co. Inc.; Blair & Co. Inc., and Baxter, Wil¬
liams & Co.
(jointly); Glore, Forgan & Co.; White,

Paradise, Inc., Phoenix, Ariz.
shares of common stock (par $10) to be
first offered for subscription by common and preferred
stockholders. Price—$15 per share. Proceeds—To retire
issued and outstanding preferred stock.
Underwriter—

bidding. Probable bidders: The First Boston Corp. and
Halsey, Stuart & Co. Inc. (jointly); Morgan Stanley &
Co.
Bids — Tentatively scheduled to
be received on

574

None.

March

from

Turf

ments.

Jan. 11 filed 50,000

•

«

Appalachian Electric Power Co. (3/19)
24 it was reported company plans to issue and sell

f

Management Co., New York

Ulen

Jan.

Dec.

filed

400,000 shares of common stock (par $1).
Price—$5.50 per share. Proceeds—For working capital.
Underwriters—Sutro Bros. & Co. and Allen & Co., both
of New York. To Change Name—Stockholders will vote
29

Feb.

15

Corp.

changing

on

$29,000,000 of first mortgage bonds due 1987. Proceeds—
To repay bank loans and for construction program. Un¬
derwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Eastman

of company to Development

name

Dillon, Union Securities & Co. and Kuhn, Loeb & Co.
(jointly); The First Boston Corp.; Harriman Ripley &
Bids—Tentatively expected March 19. Registra¬

America.

ol

if United Gas Corp., Shreveport, La. (2/27)
Feb. 1 filed $35,000,000 of first mortgage and collateral
trust bonds due
of

Co. Inc.

and

Oct. 11 it

for

per share (the latter for the account
stockholders). Proceeds—From sale of deben¬
tures, for expansion and working capital. Business—A
short haul motor common carrier operating over 3,300
miles or routes in Illinois, Indiana, Michigan and Ohio.
Office—Grand Rapids, Mich. Underwriter—Paine, Web¬
ber, Jackson & Curtis, Boston, Mass., and New York,
N. Y.
Offering—Indefinitely postponed.

of selling

Sachs & Co. (jointly); The First Boston Corp. Bids
—Expected to be received up to noon (EST) on Feb. 27.^
man,

States

Air

Conditioning Corp.
Sept. 27 filed 600,000 shares of common stock (par 10
cents), of which 50,000 shares are to be offered to em¬
ployees, distributors and dealers; 50,000 shares, plus
any of the unsold portion of the first 50,000 shares, are
to be offered to the public; and the underwriter will be
granted options to acquire the remaining 500,000 shares
for reoffer to the public. Price—At market prices. Proceeds—For working capital and general corporate pur¬
poses. Office—Philadelphia, Pa. Underwriter—Mortimer
B.
Burnsiae
&
Co., Inc., New York. Offering—Date
if United Telluride, Inc.
(letter of notification) 250,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For min¬
ing expenses. Office—800 N. Maclay St., San Fernando,

Telephone & Telegraph Co.
reported company has applied to the
North Carolina P. U. Commission for authority to offer
to its common stockholders an additional 58,310 shares

Underwriter—None.

of

Vanderbilt Mutual

Dec.

Fund, Inc., Los Angeles, Calif.
filed 50,000 shares of common stock (par $1).

31

Price—At market.

Proceeds

—

For

investment.

writer—Vanderbilt Mutual Fund Management
So. Spring St., Los Angeles 13, Calif.

Venezuela

Corp., 458

Co.

in

(of

1

it

Hudson

the

center.

Wilson & Co., Inc.
filed $20,000,000

Aug. 28

bentures

was

due

1976.

fund

gram

Proceeds

—

To

redeem

first

demriters—Smith, Barney & Co.:

Glore Forgan '& Co.
and Hallgarten &
Co., all of New York City. Offering—
Indefinitely postponed.

stock).

—To

some

be

supplied from outside
stock

permanent financing

Underwriters

sources.

offer

(first to stockholders) may
underwritten by Harriman, Ripley & Co. Inc., The
First Boston Corp. and Coffin & Burr, Inc. Bidders for
any bonds may include: Halsey, Stuart & Co. Inc.; Blyth
& Co., Inc. and Kidder,
Peabody & Co. (jointly); The
common

be

>■

First

be

Fenner &

Corp. and Coffin & Burr, Inc. (jointly);
Ripley & Co. Inc.; Merrill Lynch, Pierce,
Beane and White, Weld & Co.
(jointly); Salo¬

Bros. & Hutzler.

Central

Gale, Chairman, announced

National

Bank

of

•

l-for-7
per

basis;

share.

rights to

expire

on

Feb.

Underwriter—McDonald

&

plans

determined

March 12.

on

Registration—Planned for sometime
v '

Consumers

Jan. 25 it
its

shares

Co.1 (3/4-8)

stockholders.; 549,324

stock

common

15

Power

./

announced that company

was

common

the

on

held.

basis

of

of

new

share

one

Unsubscribed

shares

?

plans to offer to

shares
to

additional

be

for

each

offered

t6

employees. Price—Not less than $4.50 per share below
market price at time of offering.
Proceeds—For con¬
struction

program.
Underwrlter-/-To be determined by
bidding. Probable bidders: Kuhn, Loeb &c
Ladenburg, Thalriiann & Co., (jointly); Morgan
& Co.; Lehman Brothers; Harriman Ripley &

competitive
Co. and

Inc.

The

and

First

Boston:

Expected first week in March/
•

Corp.

of

28

trustees

basis

record

approved

stock

common

the

of

one

(about

to

Bids-

each

j

89,322

shares

stockholders

common

share, for

t

(3/20)/;

offering of

an

(par $10)
new

(jointly).

;-V':

*

Eastern Utilities Associates

Jan.

12

on

shares held

of

March

21); rights to expire on or about
Proceeds—To repay bank loans and for general
corporate purposes. Underwriter—May be determined by
competitive bidding. Porbable bidders: Kidder,,ipeabody

April 4.

& Co.; Blyth & Co., Inc.; Stone & Webster Securities
Corp.; White, Weld & Co. Bids—Tentatively expected
to be received on March 20.

Kidder, Peabody & Co., New
dealer-manager for the previous offering
stockholders, with Stone & Webster Securities Corp.
acting as subscription agent.
'

York, acted

as

to

,

it First National Bank of Middletown,

Ohio

Jan. 29 it was reported this Bank plans to offer to
its,
stockholders of record Feb. 4, 1957 the right to subscribe
on
or
before March 4 for 22,000 additional shares

each

(par $10)

shares

five

13.

Co.,

of
on

Price—

Cleve¬

land, Ohio.
& South West Corp.
21, it was announced company plans to issue and
approximately 526,000 additional shares of common
stock (par $5) this
Spring. Proceeds — Approximately

held.

Price—$20

v

^

...

r

'

one

per

new

share.

share for

Proceeds

Underwriter—Greene

\,6 ■/'.

;

1

*

i

Florida
Jan.

its

it

3

Power Corp.

reported that company

was

stockholders

additional

in

common

May

June

or

stock

on

plans to offer to

about

l-for-10

a

$11,000,000
basis.

of

Under¬

writers
Merrill Lynch, Pierce, Fenner & Beane and
Kidder, Peabody & Co., both of New York.
—

•

General

Public Utilities Corp. (3/11)
Tegen, President, announced company plans to offer
646,850 additional shares of common stock (par $5) for
subscription to its common stockholders of record March
8, 1957 on the basis of one new share for each 15 shares
held; rights to expire on March 29, 1957. Subscription
A.

expected

are

to

mailed

be

about March 11,
Lynch, Pierce, Fen¬
ner & Beane, of New York City, acted as
clearing agent
in previous offering to stockholders.
Underwriter—None.

Merrill

General Tire & Rubber Co.
Dec.

O'Neil, Executive Assistant to the Presi¬
management was working on a plan to
revamp
the capital structure and that the company
would like to come up with one issue of preferred stock.
He added that close to $18,000,000 will be put into cap¬
ital investments during the fiscal year to end Nov. 30,
4, M. G.

dent, said the

1957.

,

Georgia
Jan.

it

21

suance

ceeds

(6/6)

Power Co.

the company is planning is¬
$15,500,000 first mortgage bonds. Pro¬

announced

was

and sale of

To repay bank loans and for new construction.

—

Underwriter—To be determined by competitive bidding.
bidders:

Probable

Shields

and

Halsey,. Stuart

& Co. Inc.; .Morgan
& Co., Inc., Kidder, Peabody &
Co.
(jointly); Equitable Securities

Co.; Blyth

&

&

Corp. and Eastman Dillon, Union Securities & Co.
(jointly); Harriman Ripley & Co. Inc. Bids—Tentatively
expected to be received up to 11 a.m. (EDT) on June 6.
if Houston Lighting & Power Co.
Feb.

Central

at the rate of

capital and surplus.

Ladd, Dayton, O.

Co.

Cleveland

22 the bank offered
125,000 additional shares
capital stock to stockholders of record Jan. 16, 1957
a

company

in February.

Stanley

Jan.

$35

(3/12)

by competitive bidding. Probable
Halsey, Stuart & Co. Inc.; The First Boston
Corp.; Glore, Forgan & Co. Bids — Expected to be re¬

Boston

Harriman,

Co., both of New York.

Co.

bidders:

1957.

will be supplied from internal cash with the bal¬

—Any

Edison

1987.

warrants

Maine Power Co.

expected to do

build

to

issue and sell $50,000,000 of first mortgage bonds due
Proceeds—For construction program. Underwriter

to

Proceeds—For

at between

to

ance

de¬

by amend¬
presently outstanding
mortgage bonds, to repay bank loans and for ex¬
pansion program.
Business—Meat packing firm.
Un-

ment.

Jan. 3, Willis

capital stock

plans, before
approximately $12,000,(two-thirds in debt securities and
common

corporation

of|

Corp.

In 1954, a convertible debenture
underwritten by Kidder, Peabody & Co.

company

mon

of 20-year sinking
Price—To be supplied

Electric

&

$19,000,000 and $20,000,000. It is esti¬
mated that $5,500,000 of the amount needed for this
pro¬

unit.

Underwriter—None-

Gas

31, W. F. Wyman, President, announced that "while

mated

common

recreation

to

1957, no definite plans have yet been worked out.
Bank loans outstanding at the year end totaled
$10,500,000.
Construction expenditures for 1957 are now esti¬

$400 deben¬

offering to be made by officers and agents of
company.

14,464

stockholders)

in

Wildcat Mountain Corp., Boston, Mass.
Aug. 13 filed $800,000 of 6% subordinated cumulative
debentures due Dec. 1, 1976, and
6,000 shares of

ness—Mountain

Commonwealth

—To increase

Central

Jan. 31 filed voting trust certificates for
2,500,000 shares
of common stock.
Voting Trustees—J. Fred Markwell
and Alexander Markwell.

per

be Lehman Brothers and Allen &

&

Dec.

if West Star Mining Co., Coeur d'Alene, Idaho

$500

& Tele¬
to

without underwriting.

by competitive bidding. Probable bidders: Carl
Loeb, Rhoades & Co.; The First Boston Corp. and
C. Langley & Co. (jointly); Lehman Brothers and
Goldman, Sachs & Co. (jointly). Bids—Expected to be^
received up to noon
(EST) on Feb. 26.

—

tern

securities

new

offering

W.

working capital. Busi¬

to

rights

Houston, Tex.

this

pipeline to cost approximately $54,589,000
a
point in Hidalgo County, Tex., to the point of
in East Baton Rouge Parish, La.
Underwriters—May

of the year, to issue

M.

Price

its

Peabody & Co. and White; Weld & Co. placed last bond
issue privately; last preferred stock issue also placed
privately; with common stock locally or to stockholders,

Underwriter—To be deter¬

Proceeds—For construction and

Telephone

sold

offering

Pro¬

construction.

announced that the company

was

mined

ture and three shares of stock.

share).

per
new

Bell

if Central Louisiana Electric Co., Inc.
Jan. 25 it was reported that the
company plans some
debt and equity financing in 1957. Proceeds—For $12,500,000 construction program. Underwriters — Kidder,

(par $5)
stockholders of

a

share for each

construction program. Underwriter—For any debt secu¬
rities,'Kidder, Peabody & Co.; for common stock, Kidder,
Peabody & Co. and Estabrook & Co., both of New York.

—

to be offered in units of

($100

and for

1956,

share

new

Co.

the balance from*sale of

stock

Corp.,

authorized

of

the middle

subscription by common
26, 1957, on the basis of one additional share
for each 16 shares
held; rights to expire on March 14.
Price
To be named by company
(sufficient to raise
about $11,000,000 or $12,000,000).
Proceeds—To increase

(no par)

miles

FPC

000 of

record Feb.

•tock

66,640

one

par

Southern

February,

a

it Central
Feb.

West Penn Electric Co.

investments in subsidiaries.

reduce

R. S. Dickson &

50
Price—At marked, but not less than $3 per share.
Proceeds—For mining operations. Underwriter—None.

to be offered for

bank loans

shares

Diamond

(2/26)
528,000 shares of common

the basis of

on

Price—At

graph

cents).

filed

stock

Underwriter—None.

Venezuelan Sulphur Corp. of America
f(N. Y.)
Jan. 29 filed 150,000 shares of common stock (par

25

common

ceeds—To

Under¬

lumbia Securities Co., Inc., of Florida (name changed to
Alfred D. Laurence & Co.),
Miami, Fla.
v

Jan.

was

four shares held.

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¬
,

it

16

Transmission

28, the

was

Carolina

Nov.

Dec.

Co.

reported company plans to issue and sell
between $15,000,000 and $20,000,000 of first mortgage
bonds. Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc. (jointly);
W. C. Langley & Co. and The First Boston Corp. (joint¬
ly); Equitable Securities Corp.; Blyth & Co., Inc.;. Kid¬
der, Peabody & Co. and Merrill Lynch, Pierce, Fenner
& Beane (jointly). Offering—Expected in 1957.

Jan. 21

Co.

Stanley

Carolina Power & Light Co.

Oct. 15 it

indefinite.

Calif.

at $11

$3)

(par

&

Coastal

ceived

announced corporation plans to issue and

was

sell $1,000,000 of 6% convertible subordinated debentures
due Oct. 1, 1971 at par and 75,000 shares of common stock

Inc.; Kuhn, Loeb & Co. and American Securities Corp.
(jointly); White, Weld & Co. and Equitable Securities
Corp. (jointly); Harriman Ripley & Co. Inc. and Gold¬

United

13.

Associated Truck Lines, Inc.

of United Gas Pipe Line Co., a

construction program of the two
companies. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
subsidiary,

Feb.

tion—Planned for

Proceeds—To purchase $30,000,000

1977.

first mortgage bonds

26.

Weld

1

it

was

announced

company

(3/25)
plans to offer to its

Prospective Offerings

Alabama
sell

pay

Power

Co.

new

UJ.?
determined by
bidders.
Halsey,

Union

Stuart

Securities &

Drexel

&

o!P Sys

Co.

Proceeds—To

construction.

and
re¬

Underwriter

competitive bidding.
&

Probable

Co.

Inc.; Eastman Dillon,
Co., Equitable Securities Corp. and

(jointly);

Lehman

Brothers;

TInc' and Goldman, Sachs

Harriman

& Co. (jointly);
Kidder, Peabody & Co. (jointly !
Morgan Stanley & Co. Bids—Expected to be
received
up to 11 a.m. (EDT) on
May 9. Registration—Planned
P

Blyth & Co.

for April

Inc. and

12.




stock

for

10

to

$10,500,000

?.nn°unced company plans to issue

loans and for

stockholders about 612,300 shares of additional

common

$20,000,000

(5/9)

$14,500,000 first mortgage bonds.
bank

common

Jan.
sell

of

securities
be

of

pay

the

off

of

remaining funds to

company's

determined

$7,500,000

by

subsidiaries.

bank

and

&

Co.

Illuminating Co.
company plans to issue and sell
mortgage bonds in the Summer of
Proceeds—To repay bank loans and for construc¬

Nov. 12 it

$25,000,000
1957.

Electric

was

of

reported

first

tion

program. Underwriter—To be determined by competitive. bidding.; Probable bidders:, Halsey, Stuart; &
„

(no par)

shares

held

on
as

the

basis of

of March

25,

one

new

share

1957; rights to

April

equity

Underwriter—To

competitive

(jointly); The First Boston Corp.
Merrill Lynch, Pierce, Fenner & Beane
(jointly).

Cleveland

on

outstanding
amendment

bidding.
Probable bid¬
ders: Blyth & Co., Inc., Smith, Barney & Co. and Harri¬
man
Ripley & Co. Inc. (jointly); Lehman Brothers and
Lazard Freres

expire

and

loans,

purchase

each

reduce bank

15, 1957. At Dec. 31, 1956, there were
6,122,596 shares. Price—To be supplied by
registration statement. Proceeds—To

to the

loans and for construction program. Under¬

writer—None.

Houston Texas Gas & Oil Corp.,
Dec.

28

FPC

the

942.6 miles of

authorized

this

Houston, Tex. «
corporation to build

main line extending from the

River connection

across

Mississippi

Louisiana, Mississippi and Ala¬

bama, and then eastwardly across the Florida panhandle
and down the Florida peninsula to a terminal south of
Miami

in

Dade

County,

Fla., estimated to

cost

a

total

of $94,285,000. Underwriters—May be Blyth & Co., Inc.
San Francisco, Calif., and Schar£f.& Jones, Inc., New

Orleans, La.

„

:

Volume

Number 5610

185

.

.

The Commercial and Financial Chronicle

.

(709).

45v

H

Indianapolis Power & Light Co.
Prichard, President, announced that pres¬
plans contemplate an issue of $6,000,000 of preferred

Mississippi Power Co.

Nov. 21, H. T.

Jan.

ent

sell $6,000,000

stock

time

some

1957

in

conditions

market

if

make

it

issue of $8,000,000 in bonds in 1958. Tem¬
bank loans are available and probably will be

feasible, and
porary

an

utilized, during at least part of

sold in 1959 and

to be

rities will need

Additional

1957.

secu¬

1960, amounting

approximately $14,000,000. Proceeds—To repay bank
and for new construction. Underwriter—May be

to

loans

Goldman, Sachs & Co. and The First
who underwrote last equity financing.

Interstate Power Co.

Dec.

20

it

....

reported company expects to issue and

was

in

May $6,500,000 of first mortgage bonds. Under¬
writer—To be determined by competitive bidding. Prob¬
sell

Stuart & Co. Inc.; Merrill Lynch,
Beane and Kidder, Peabody & Co.

able bidders: Halsey,

Pierce,

&

Fenner

(jointly); Salomon Bros. & Hutzler; White, Weld & Co.
and R. W. Pressprich & Co. (jointly); Smith, Barney
& Co.

;

Iowa Electric Light & Power

Jan.

it

2

ders:

the

construction

1957

Co.

program

finance

to

will necessitate the sale
to $6,000,000. The

of securities to the extent of $5,000,000

be

exact amount to

be sold

are now

Underwriters

raised and the type of securities to

under consideration by the management.

May be The First Boston Corp., New
York; and G. H. Walker & Co., St. Louis, Mo.
Jefferson

—

Lake

Dec. 27, Eugene H.
in the

near

Sulphur Co.
Walte, Jr., announced

future to sell

Proceeds—For

tures.

company plans
issue of convertible deben¬

an

expansion program.

•

Jersey Central Power & Light Co.
Sept. 12, it was announced company plans to issue and
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
& Co. Inc.; Kidder, Peabody & Co.; The First Boston
Corp.; White, Weld & Co.; Eastman Dillon, Union Secu¬
rities & Co., Salomon Bros; & Hutzler and Merrill

Bids

Pierce, Fenner & Beane: (jointly).
June or July,.1957.
fj : > >

—

Lynch,
Expected in

<

.

v

.

•

.

-

ye

*

Kaiser Industries, Inc. •/".
Nov. 28, E. E. Trefethen, Jr., Executive

Vice-President,

stated that it is anticipated that a portion of the funds
necessary to meet the $25,000,000

installment due April
I, 1957 on its 4%% teriii loan may have to be provided
by the creation of debt by, or the sale of equity securi¬
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
Corp., New York..

First Boston

.-Laclede Gas Co.
Jan.

24

stockholders

approved -certain
proposals
authorizing $10,000,000 of debentures and increasing
the authorized preferred
stock
(par $25) by 400,000
shares to 880,000 shares. The company has no immediate
plans to issue any of these securities. Underwriters—To
be determined by competitive bidding. Probable bidders:
(a) For debentures—Halsey, Stuart & Co. Inc.; Lehman

Brothers; Blair & Co. Incorporated and Drexel & Co.
(jointly); Stone & Webster Securities Corp. (b) For pre¬
ferred stock—Lehman Brothers, Merrill Lynch, Pierce,
Fenner & Beane arid Reinholdt & Gardner
(jointly);
Bear, Stearns & Co. and A. C. Allyn & Co. (jointly);
Blair & Co. Incorporated and Drexel & Co.
(jointly);
White, Weld & Co.; Ladenburg, Thalmann & Co.
Lone
Jan.

11

Star

it

was

Gas

Co.

(3/5)

announced

shareholders

common

plans to offer to its
right to subscribe for a new

company

the

issue of 154,834 shares of convertible preferred stock in
the ratio of one preferred share for each 40 shares of
common
stock held as of record about March
5, 1957;

rights to expire about March 25. Price—Expected at par
($100 per share). Proceeds — From sale of preferred
stock, plus funds from sale of $30,000,000 of debentures,
to

bank debt of $20,000,000 and for construction
program.
Underwriter—The First Boston Corp., New
repay

Lone Star Gas Co.
sell

(4/11)

11

it

was

announced

company

plans to

$30,000,000 of debentures/ Proceeds—To

loans

and for

First

Boston

expected

construction

Corp., New
late in April.

program.

York.

issue and

repay

bank

Underwriter—The

Offering—Tentatively

'•

Metropolitan Edison Co.
was reported that company is now
considering
the
sale
of
$19,000,000
first
mortgage
bonds
due
Underwriter

To

be

determined

by competi¬
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; White, Weld & Co.; Blyth & Co., Inc.; Kidder, Peabody & Co. and Drexel & Co. (jointly); The First Boston
Corp. Bids—Not expected to be received until sometime
in April or May, 1957.
—

tive

^Minnesota
Jan. 28 it

Power & Light Co.

by competitive bidding.

Probable bid¬

10 it

writer

To

—

be

by

New

New

York, Chicago & St. Louis RR. (2/14X
by the company up to noon (EST)
on Feb.
14 for the. purchase from it of $6,420,000 equip¬
ment trust certificates due semi-annually from Sept. 15,
1957 to March
15, 1972, inclusive.
Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.
New York State Electric & Gas Corp.
was announced company plans to

Oct. 24 it

sell in 1957
$25,000,000 of first mortgage bonds, and an additional
$20,000,000 in 1958.
Proceeds—To finance construction
Underwriter—To be determined by competi¬
bidding. Probable bidders: Halsey, Stuart & Co.

Hutzler

and

Salomon

Bros.

&

(jointly). Bids—Tentatively planned for March
Registration—Expected tomorrow (Feb. 8).




mon

1977.

be

company plans to offer to its
195,312 additional shares of com¬

the basis of

on

Proceeds

one

share for each five

new

To

repay about $3,000,000 of J
Underwriter—The First Boston Corp., New
Registration—Expected about the middle of Feb¬
—

York.

Royal State Bank of New York
Jan.

17

it

(par

$5)

announced

was

stockholders

owned I of

March 1.

bank

50,000 additional
basis of one
record

Price—$16.50

plans

shares

the

on

offer

to
of

to

capital

share

new

for

its

stock
six

each

Jan. "

24; rights to expire on
share. Proceeds—To increase

per

capital and surplus.
Savannah

Jan.

21

it

Electric

&

reported!

was

Power

Co.

(3/15)

plans to register on
or about Feb. 13 a total of 20,000 shares of cumulative
preferred stock (par $100) and 163,334 additional shares
of common stock, (latter to be offered for subscription
by common stockholders of record about March 14, 1957
company

writers—The

First

-

:

Jan. 14 it

was reported company plans to issue and sell
$10,000,000 of first mortgage bonds. Underwriter—To be
determined by competitive' bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Cor^. and

Lehman

Brothers

(jointly); Kidder, Peabody* & Co.;
Union Securities & Co. Bids—Not ex¬

Eastman Dillon,

pected to be received until next Fall.

California! Gas

Jan.

21

it

—To

announced

was

6ell about

*

*.

-

company

plans to issue and

$35,000,000 of first mortgage bonds.
bank loans

repay

derwriter—To
Probable

be

for

and

,

Co.

determined

new

by

Proceeds

construction.

Un¬

bidding.

competitive

bidders:

Halsey, Stuart & Co. Inc.; Blyth &
Lynch, Pierce, Fenner & Beane
(jointly); White, Weld & Co. and Eastman Dillon, Union
Securities & Co. (jointly). Offering—Expected in August
Co.,

or

Inc.

Merrill

and

September, 1957.
Southern
21

it

Co.

was

common

(3/13)

'

announced

stockholders

company

plans

to

offer

to

of

record March 13, 1957 the
before April 4, 1957 for 1,507,304

additional

shares

of

Price—To

be fixed

Kidder, Peabody
Hutzler (jointly).

termined by competitive bidding. Probable bidders: The
First Boston Corp.; Morgan Stanley & Co.; Kidder, Pea¬

Norfolk

(2/13)

Ry.

Bids will be received by the company up to noon
on Feb. 13 for the purchase from it of $2,910,000
ment trust certificates,

semi-annual
Stuart

&

&

,

Western

&

Bros.

(EST)
equip¬

series A, to mature in 30 equal
Probable
bidders:
Halsey,

Inc.; Salomon Bros. & Hutzler.

Feb.

Pennsylvania

Electric

Co.

bidders: Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce,
Fenner & Beane, Eastman Dillon, Union Securities &

Co. and White, Weld &
ties

Co. (jointly); Equitable Securi¬

Natural

Pioneer
Jan.

it

7

was

in

Potomac
Dec.

it

27

Edison

was

Underwriter

public offer¬
Eastman Dillon,

—

York.

company

may

in 1957 issue

$14,000,000 to $15,000,000 of senior securities. Pro¬
To repay bank loans and for construction pro¬
gram. Underwriter—For any bonds to be determined by
competitive bidding. Probable bidders:
Halsev, Stuart
some

&

—

Co.

Inc.;

White,

Weld

&

15.m

Southern

Feb.

1 it

was

l-for-13

Co.;

Equitable Securities

basis.

be

(EST)

de¬

March 13 at

on

•

-

(3/7)

announced company expects to

specified

amount

March

Probable

7.

*

,

Pacific Co.

of

equipment

bidders:

trust

sell an
certificates

un¬
on

Halsey, Stuart & Co. Inc.;

Salomon Bros. & Hutzler.

* Stuart-Hall Co., Inc., Kansas City, Mo. (3/5)
Jan. 30 it was reported early registration is expected
of about

share.

40,000 shares of

common

stock. Price—$6.75 per

Underwriter—White & Co., St. Louis, Mo.
Eastern Transmission

Corp.

Jan. 16, George

T. Naff, Vice-Chairman, announced that
corporation expects to secure an additional $100,000,000
through issuanec of senior securities and possibly equitysecurities and $40,000,000 from an existing bank loan
agreement. Proceeds —For expansion program. Under¬
writer—Dillon, Read & Co., Inc., New York.
Texas
2

it

Electric

Service

announced

was

Co.

company

expects to sell new-

continuing

plant expansion. Underwriter — For any bonds, to be
by competitive bidding. Probable bidders:

determined

Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co. and

Pierce, Fenner & Beane (jointly); Hemp¬

Merrill Lynch,

Co.

announced

a

securities during 1957 to obtain capital for its

reported registration is expected in Feb¬

March.

•

Jan.

Gas Co.

of about $12,500,000 debentures, for

early

ing

Harriman Ripley &

Corp.; The First Boston Corp.;
Inc.; Kuhn, Loeb & Co.

on

Underwriter—To

Ave., New York, N. Y. Registration—Expected

Texas

Sept. 12 it was announced company plans to issue and
$6,000,000 of first mortgage bonds. Underwriter—
To be determined by competitive bidding.
Probable
sell

12.

Bids—To be received up to 11 a.m.

250 Park

Telephone & Telegraph Co.
y
Jan. 14, James S. Cantlen, Vice-President, announced
that company plans to spent $159,000,000 in 1957 and
$157,000,000 in 1958 for expansion and improvement to
be financed in part, by debt borrowings and stock issues.
About 90% of Pacific's stock is owned by American Tele¬
phone & Telegraph Co. Underwriter—For any bonds, to
be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.

stock

common

March

body & Co. and Merrill Lynch, Pierce, Fenner & Beane
(jointly); Lehman Brothers; Eastman Dillon, Union Se¬
curities & Co. and Equitable Securities Corp. (jointly).

instalments.

Co.

.

South Carolina Electric & Gas Co.

on or

Salomon

-

l-for-6 basis;

rights to expire on March 29). Under¬
Boston Corp. and Stone & Webster
Securities Corp.., both of New York.

on a

right to subscribe

and

'

announced

stockholders

stock

Inc.; Kuhn, Loeb & Co.; Blyth & Co. Inc. and Smith,
Barney & Co. (jointly); The First Boston Corp. and
Glore, Forgan & Co. (jointly); Harriman Ripley & Co.

Co.

-

Lehman, Brothers

ruary.

its

&

'

bank loans.

tive

Inc.;

1

Pro-

Underwriter—To

program.

Telephone Corp.

was

shares held.

Jan.

ceeds

Co.

Rochester

common

program.

and Drexel & Co.

&

and

Southern

Union Securities & Co., New

(jointly); Kuhn, Loeb & Co.; Eastman

construction

Co.

Jan. 28 it

March 28.

•

(3/20)

(jointly); Morgan
Stanley & Co. and Drexel & Co.,(jointly). Bids—Expect¬
be received up to 11 a.m.
(EST) on March 20.

Orleans Public

Bids will be received

Co.

plans to issue and

ed to

Nov. 13,

on

&

shares

Service, Inc. (3/28)
Edgar H. Dixon, President, announced tfyat this
company plans to issue and sell $6,000,000 of first mort¬
gage bonds. Proceeds—For construction program. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; White, Weld &
Co.; Blair & Co. Incorporated; The First Boston Corp.;
Equitable Securities Corp. and Eastman Dillon, Union
Securities & Co. (jointly); Kuhn, Loeb & Co. and A. C.
Allyn & Co. Inc. (jointly); Kidder, Peabody & Co. and
Stone & Webster Securities Corp.
(jointly); Lehman
Brothers.
Bids—Tentatively expected/ to, be received

& Gas

company

$50,000,000 of debentures due March 1,

Loeb

.

New

Electric

announced

was

„

by competitive bidding. Probable bidders:
Halsey, Stuart & Co., Inc.; The First Boston Corp.; Kuhn,

$5,000,000 of first mortgage bonds. Underwriter—
determined < by competitive bidding.
Probable
bidders: Halsey, Stuart & Co.; Kuhn, Loeb & Co., Leh¬
man Brothers and Salomon
Bros. & Hutzler (jointly);
Eastman Dillon, Union Securities & Co. and White, Weld
& Co. (jointly); Equitable Securities Corp.; The First
Boston Corp.; Merrill Lynch, Pierce. Fenner & Beane.
be

Service

it

Bids—

determined

sell

To

29

ceeds—-For

announced company plans to issue and

Stuart & Co. Inc.; Kidder,
Peabody & Co. and Merrill Lynch, Pierce, Fenner &
Beane (jointly); White, Weld & Co., Shields & Co. and
Equitable Securities Corp. (jointly); Lehman Brothers
Securities

sell

and

Probable

Union

Public
Jan.

Jersey Power & Light Co.
was

Underwriter—To

Brothers; Harriman Ripley & Co. Inc.
Expected to be received early in 1957.

competitive

Wood, Struthers & Co. (jointly);
Lehman Brothers; The First Boston Corp.; Equitable
Securities Corp.; Merrill Lynch, Pierce, Fenner & Beane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly).
Offering—Expected in first half of 1957.

Sept. 12 it

construction.

new

Lehman

England Electric System
Jan. 3, 1956, it was announced company plans to
merge
its subsidiaries, Essex County Electric
Co., Lowell Elec¬
tric Light Corp., Lawrence Electric Co., Haverhill Electric
Co. and Amesbury Electric Light
Co., into one company.
This would be followed by a $20,000,000 first mortgage
bond issue by the resultant
company, to be known as
Marrimack-Essex
Electric Co.
Underwriter—May be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Company;
Salomon
Bros.
&
Hritzler,
Eastman
Dillon,
Union
& Co.

loans and for

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 Smith, Barney & Co. (jointly);

New

Securities

of Colorado

was

be determined

bidding.
Probable bidders: Halsey, Stuart
,& Co. Inc.; The First
Boston Corp.; Eastman Dillon, Union Securities &
Co.;
White, Weld & Co.; Harriman Ripley & Co. Inc. Bids—
Tentatively scheduled to be received up to 11:30 a.m.
(EST) on May 28. Registration—Planned for April 18.

ruary

Dillon,

bank

(5/28)

determined

Service Co.

reported company plans the issue and sale
of $30,000,000 first
mortgage bonds. Proceeds—To repay

was

To repay bank loans and for construction program. Un¬
derwriter — To be determined by competitive bidding.

Halsey,

Public
Oct. 8 it

reported company plans to issue $15,000,000 of new 25-year debentures. Proceeds—To make addi¬
tional investments in securities of subsidiaries.
Under¬

was

bidders:

ing—Expected in May.

&

National Fuel Gas Co.
Jan.

Co.

(3/11)

reported company plans to issue and sell
$12,000,000 first mortgage bonds due 1987. Proceeds—

II.

—

Beane; Kidder, Peabody & Co.; Blair & Co.
Incorporated; Eastman, Dillon, Union Securities & Co.
and Equitable Securities Corp.
(jointly). Bids—Tenta¬
tively expected to be received up to 11 a.m. (EST) on
April 11.
v
*

Jan. 29 it

1987.

Corp.; Kuhn, Loeb & Co. and Blyth & Co., Inc. (jointly);
Lehman Brothers; Kidder, Peabody & Co.; W. C.
Langley & Co. and The First Boston Corp. (jointly). Offer¬

*

.

plans to -issue and
Underwriter

company

mortgage bonds.

Pacific

York.

Jan.

of first

Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce,

Fenner

•

that cash required

announced

was

announced

was

To be determined

Lehman Brothers,
Boston Corp.,

it

21

*0

hill, Noyes & Co. and Drexel & Co. (jointly); The First
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).
t

'

Continued

on

page

46

46

The Commercial and Financial Chronicle

(710)

I

Continued

jrom

if Thorp Finance Corp.
was reported company plans to issue and sell
locally 10.000 additional shares of 5% preferred stock
sell

to

generally

Virginia

additional

some

Jan. 28 it

TIVIT Trailer

Jan. 21

it

Probable bidders: Halsey, Stuart & Co. Inc.;
Co. Incorporated and Baxter & Co. (jointly);
Lynch, Pierce, Fenner & Beane and Stone &
Webster Securities Corp. (jointly); Kidder, Peabody &

cost

it

additional

this privately-owned company

announced

was

giving active consideration to a public stock issue.
Proceeds—Together with a loan of about $6,000,000

jrom

have since

futile

Prosperity's Tripod
Importance of Confidence

regulated and broadly based

such

our

as

all-important consumption is cur¬

of

controls

Power

Credit is

of

Credit

demo¬

a

cratically high living standard.
makes

of

possible

huge

the

stores

form of material

It

accumulation

of wealth in the
things and places

these in the hands of all the peo¬

It is the mechanism that has

ple.

established tens of millions of at¬

tractive, comfortable homes across
nation and has given the fam¬

our

ilies that occupy

them the pride,
satisfaction and deep sense of per¬
sonal responsibility that are the
of

marks

home

ownership. It is
the basis for our motor transport
system, the incomparable network

of

highways

50

million

that

and

streets

the

and

personally-owned cars
them. It yields fun, lei¬

use

cleanliness,

better diet and
protection of the family health
through modern home appliances
and furnishings.
It gives anyone

sure,

the

assurance

a

that he is not stand¬

ing alone and without somewhere
to turn in times of financial emer¬

'

So this is the Tripod supporting
a

prosperous

economy

Consumption

tion,

Produc¬
Credit.

—

and

What is needed to make

this

sure

tripod is strong, firmly braced and
able
to
perform
its
function?
There
est

enough confidence.
of

us

that

sense

inflation

is not the only

threat to our pres¬
prosperity. If you want to be
pessimistic, you can say we have
reached a kind of uneasy balance
ent

between
are

boom

If

bust.

and

optimist,

an

you

you

has stabilized at
prosperous level.

a

our

high

Any program that regulates eco¬
forces

nomic

artificially
too far, of course.

carried

20%.

monetary
must

motor

maximum

from

national

Certainly,

policy

in this

country
support
employment

administered

be

cars

levels

of

to

all times.

at

nation

is embarking on a
highway improvement
that will require many

for

credit

new

from

dollars

additional

of

that

resulting

are

be

can

If the
is to continue to grow,
the money supply must grow as

annu¬

ally on

street and highway con¬
struction, compared with today's
$4 billion, so that they will have
to raise

through taxation and bor¬
some

construction

$101 billion for road
in the next 13 years.

As the various units

market
this

borrow

to

credit

is

to

sure

into the

come

their

share

of

bill, the supply of

enormous

be

subjected

to

additional pressure.

Developments
such

these

as

trouble

for

possibilities
likely to cause

the

monetary

control

They are reminders that
limiting the supply of credit; can
be
not only unpopular but also

program.

very

dangerous if not handled with

extreme

Tripod

wisdom

and

will

continue to rise,

In order to hold such

restraint
we

and

relying

are

leaders

of

System,
known
gree,

the

and

Federal

To

present
Reserve

their

perhaps

successors.

our

a

sponsibility
bear.

That

for

is

any

a

is in

grave

few




un¬

great de¬

economic security

their hands.

pre¬

growth,

the

on

a

necessary

necessary

This

Excesses

major mistakes

and miscalculations

follow

as we

down.

or

can

either

go

this

Whenever

oc¬

a

tricky and precarious route.

very

avoid

must
or

timid

speculative

of negative and

excesses

fair

thinking.
in

Business,

seeking

labor
practice
than

more

in

share

ex¬

profits,
Considering the

wages

a

an¬

ticipating that the other two must
be reduced accordingly.

men

re¬

to

Confidence

and

and

the

However,

proper

credit mechanism

ing
in

credit
the

liance

there's

functioning
than

available.

future
must

dominate

just mak¬

they

or

credit,

no

will

matter

minds

consum¬

not use their
how freely or

how cheaply it is offered.
the

During
1930's, all kinds of credit were

available

but

the

•

the

banking

system

Federal

in

Reserve

people

for

public

Bonds

secured under the pro¬
United States Housing

are

realizing just how sound is
long - term outlook for the

mark

the

least refreshing: "We are protected

communities must, the

American

our

economy—if it is

man¬

aged properly.
confidence

Great
is

*;
in

warranted.

Families, the basic
consumption and of credit,

increased

have

rate of
is

10 million, or
in the past ten

by

25%,

The

good citizfens.

still,

average

that

groups

always

the

least

incomes

expressed

in

dollars
it

This

value.

Today,

the

of the average

highest

it

fortably

over

has

year,

in¬

annual

family is the
been—com¬

ever

$5,000 after taxes.

economy

provides

now

victory

patriots

downfall to

struction

is

as

is

destroy

can

insidious,

an

threat that

Security

insurance,

insurance, enormous sav¬
rising home ownership, a
growing class of economically-se¬
people—these

are

our

defeat

nism

or

life

It

iust

mili¬

as a

fascism,

by

some

commu¬

other foreign Heol-

that is the way the

l

am sure

Soviet

leaders

ofiy.

of

wav

completely

surely and

tary

internal

realh'

exnect

to

for that is what Karl

overcome us.

Marx taught.

Automation

*

is

the

promise of
vate

obligation

our

the

and

system of free pri¬

enterprise

to

provide

year

after year a fuller, ric^r, better
life for all our people. Rising
pro¬
duction

and

living,
credit,

a

rising standard

of

supported

by adequate
the' fundamental safe¬

are

guards of

our economic

destiny. If

as

side,

it

DETROIT, Mich.

is
R.

away from laissez faire
doctrines, ^no matter which politi¬
cal party is in control. There are

most

needs

are

expenditures,
appear
come.

seen,

unfortunately,
for

Monetary policy,
can

and

should

coura¬

no

—

Herbert W.

affiliated

with

S.

the

Detroit

Stock

&

Co.,

members

be

we

16, 111.,

St., Chicago

$4.50.

gian Industrial Information
Service, 630 Fifth Avenue, New
York

20, N.

Y.

paper

—

—

on

request.
Benefit

in

Formula
Insurance

ment

Unemploy¬
Michael

—

T.

Industrial Relations
California Institute of

—:

Technology,

Pasadena,

Calif,

(paper), $1.00.
Books

1957

from

Chapel

catalogue

—

Carolina

Ilill—Spring,
University of
Press, Chapel

Hill, N. C. (paper).
Government

Publications

Monthly list — British Infor¬
mation Services, 30 Rockefeller

With Laird, Bissell

Plaza, New York 20, N. Y., 45c.

(Special to The Financial Chrontcle)

NEW

HAVEN,

Conn.

—

Earl

J.

Davies has become connected with

to

35th

—

Laird, Bissell & Meeds, 44 Whit¬

have

Illinois

Belgian System of Taxation in Its
Relation to
Corporations—Bel¬

British

Exchange.

to

used

Armour

of

of

also

years

for

Institute of Technology, 10 West

North

Crouse

Building,

that will

Huge military

unavoidable

now

Livingstone,

examples of the

constructive.

is

Penobscot

continued—highway needs and

school

be

to

(Special to The Financial Chronicle)

completely

programs

continue

AU1,

Foundation

Research

Section,

Boyes

spending

people,

Livingstone, Crouse

sector that will contrib¬

government

Conference

A

conference—MF;

Wermel

Joins

obvious that the U. S. has turned

be

a

limits.

long-term expansion.

—

Executives—Proceedings of 1956

It

just

few of the strong points in the

10

as

always present.

industrious, inventive and

Social

subject to call after

older civilizations as have
military
defeats.
Fconomic
de¬

and

vast

on

Jan. 1 from 1958 to 1997 inclusive.

col¬

we,

retired

are

and

economic

built-in security provisions
for most peonle.
Unemployment

the

Feb. 6,

many

the

above

for

as

Yet

lapse has brought

expected 2,500,000 will achieve

step.

together

work

self-sacrificinglv,

proportionally

line,

On

on

1, 1956 and mature

from date of issue.

constant

cure

competitive bidding
dated Jan.

are

their

The

fami¬

currently
offered
purchased by the group via

years

while

come

unprotected

lies."

taxes.

bonds

They

million families for the first time

this

mil¬

and

The
were

and

a

thie very rich
being substantially elimi¬
the one huge class
that always consume* the most,
the middle income group, is raoidlv
expanding.
Last year, two

is

other

of

on pen¬

always been quick to cloSe ranks

1,500,000

are

of

lions

the

and it

a

reach

important

$3,000

sions and fixed incomes

hereafter imposed
United States. They are
likewise exempt from New
Yjork

by

year

to

—the very poor and
nated

concerned with the economic well-

all

exempt from

are

now or

deeply* State income

we are

being of Americans living

taxation

In time of war, Americans have

family income is rising rapidly
through redistribution of the total

—

of

cost

as amended, and, by
Congress, both principal

at the

Income Redistribution

consume

at

1937,

million

one

income.

through

is

of

now

in the 1960's.

More

inflation

Reuther

of

growth is

expected

year

against

Walter

living contracts but

future

the

by

a

$16,800,000 New York
Housing
Authority
2%%
bonds at prices to yield from 2%
to 2.85%, according to maturity.
These
New
Housing
Authority

tives.

effect

investment

issue of

City

of

self-re¬

the

of both businessmen and
ers,

more

of the

Confidence

strong

and

is

offering
new

interest

ute to

credit

consumer

York,
Halsey, Stuart & Co. Inc., Merrill
Lynch, Pierce, Fenner & Beane,
Eastman Dillon, Union Securities
& Co., and F. S. Smithers Co. is

and

our

heads and

our

taxes.

of The First

group composed

Act

Controlled future growth in both

business

A

long-continued upward wage
spiral on inflation, this recent re¬

keep

consumer

Self-Reliance

Offered to Investors.

perspec¬

and of

ness

a

Need

Also

Giiy Housing
Authority 2%% Bonds

visions

leaders of busi¬

tiny, then the future will have

Credit

without

New York

Act

are

offer

shares of

of

who

curs, we

to

the basis of

or

geous. with confidence in our des¬

the

if

or

foreshortened

to

between

Avoid

We must avoid

ings,

untouched,

is

required.

balance

be

newly formed

a

National City Bank of New

plainly marked.

health

leg

credit available to make this pos¬

cise

still

a

trend that

new

rather

seems

many

then there must be the funds and

sible.

goals

topple over, if the
Consumption leg is sawed off half¬
way up and the Production leg is

If the volume of production

living are to

up

see

values

although the road that

these

restraint

The

care.

human

and government must all

a

raised

and

are

leads to

of

people cannot be taken

of

capital expendi¬
Federal, state and
governments will soon be

spending about $12 billion

betterment

in

industry's

local

the

for all the

for granted,

cesses

tures program.

qnd consumption and the standard
of

will

pres¬

-

breakaway from
the present stability and the start
may

The

top of the huge demands

there

on

two

However, in spite of all this, un¬
interrupted growth, prosperity and

conditions from time to time.
year

years.

of

careful

very

inflationary

sures.

We

program

economy

well.

and

than

on

the

brake the worst

rather violent changes in business

better

billions

eliminate

use of credit—to spend more
after year just so the econ¬
omy will aiways keep growing.

tremendous

credit

has yet

one

no

is

saying

Inc.

announced this company,

one share of Proper¬
ACF-Wrigley. Proceeds
—To develop locations principally for use by the
parent
company, which may include individual locations, ware¬
house sites and shopping centers.
Underwriter—Allen
& Co., New York. Registration—Expected shortly.

To

—

their

unit of
The

as

Therefore, I do not

course,

Properties,

was

stockholders to be

To repay

year

Of

it

left

say

can

economy

'

to

50

two factors of the great¬

are

importance: enough credit and

Most

down payment on

kinds,

have

Canada

and

rowing

opportunity.

gency or

Using selective

different

both
experi¬
enced sharp drops in the produc¬
tion of durable goods and in fac¬
tory employment.
To keep men
working, Britain has been forced
to back away from their restraints
recently, by cutting the required
Britain

symbol of

a

employment result in

certain industries.

used

old

to

way

smart

very

tailed and significantly lower pro¬
duction and

famous

a

it

string."

business cycle.

be cut off to the extent that

never

—

Underwriter

think it will always be possible to
induce
people — who are really

Credit for legitimate needs must

econ¬

present one is
required to develop the wide and
constructive
varieties
of
credit,
and its broad applications, that are
now enjoyed in the United States.
omy

invented

Proceeds

get

the statement that

Much

Cannot Cut Credit Too

A complex, organized,

plest kind.

to

on a

Another

Economic

1987.

correctly described the

efforts

6

ties stock for each

construction.

new

"pushing

And

►

company plans to issue some
securities, probably about $20,000,000

senior

bank loans and for

15

page

$10,000,000 of first mortgage bonds in the Spring.

its shares of capital stock for subscription
by the latter's
stock, debenture and option holders, the offering' to

announced

was

of first mortgage bonds due

is

Continued

Companies

reported company plans to issue and sell

} subsidiary of ACF-Wrigley .Stores, Inc., plans

West Penn Power Co.
Dec. 27 it

United Artists Corp.

.

Dec.

Co.; Equitable Securities Corp.; Eastman Dillon, Union
Securities & Co.; The First Boston Corp.

previously were placed privately.

Jan. 9

Massachusetts

was

Wrigley

&

Merrill

of its $110,000,000 1957 construction
program.
Underwriter — For preferred stock —White,
-Weld & Co. and Stone & Webster Securities Corp. Bonds
the

17 it

Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Equitable

bidding.

Blair

was

of

Dec.

Securities
Corp. and Lee Higginson Corp.
(jointly);
1957. Pro¬ '> Blyth & Co. Inc.; Blair & Co. Incorporated; Coffin &
ceeds—To repay bank loans and for construction pro¬
Burr, Inc.; The First Boston Corp. and White, Weld &
Co. (jointly).
gram.
Underwriter—To be determined by competitive

reported that company plans to sell some
additional preferred stock and bonds in order to raise
it

Western

Lynch, Pierce,
Bids—Tentatively expected on June 4.

the sale of first mortgage bonds some time in

Pipe Line Corp.

Transcontinental Gas

&

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.

Washington Gas Light Co.
12, Everett J. Boothby, President, announced that
the company expects to raise about $8,000,000 thrpugh

Ferry, Inc.

Thursday, February 7, 1957

.

Co.

&

Dec.

financing, but details have not as yet been determined.
Financial Adviser—Salomon Bros. & Hutzler, New York.

Jan. 8

rities

(6/4)

about

reported corporation is considering public

was

Co.

Power

Stone & Webster Securities Corp.; Merrill

Fenner & Beane.

Milwaukee, Wis.

of

&

.

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Eastman Dillon, Union Secu¬

reported company plans to issue and sell

Underwriters—Emch & Co. and The Marshall Co.,

poses.

part

Electric

was

.

,

be determined
„

500,000 shares of common stock. Underwriters—To be
determined
by competitive bidding. Probable bidders:

stock

common

19oV. Price—Of preferred, $102 per share. Pro¬
ceeds—For working capital and general corporate pur¬
during

both

picture exhibitors, to be used for working

capital and other general corporate purposes.

Jan. 30 it

and

motion

from

45

page

■

ney

Avenue, members of the New

York

Stock

Exchange.

Commuting Patterns of Manufac¬

turing

Employees

—

James

H.

of Indus¬
West Virginia

Thompson—Institute
trial

Relations,
University, Morgantowr W. Va.
—paper.

y

Volume

185

Number

5610

.

.

The Commercial~and Financial Chronicle

.

47,

(711)
steadily and h£s stepped off a re¬
covery which
*Jias reduced yields
an

of/around

average

V2

of

1%,
from 4.^0%.* to a 4.30%
basis,
the interval; it is noted, yields
stocks th'ave been marked
up

or

In
011

about

V2 of 1 %

the average:

on

20-year

a

Carolina

maturity.

Electric

projecting
stock
the

to

offered

of

one

South

of

holders
share

new

DETROIT,

336,085
common

to

in
for

Roberts

with
wold

de¬

gree.
from
'

proved

readily

substantial

the

to

up

task

put

The situation

the

eased

was

reported

insurance

of the

issue

new

weeks

and

more

St.

Canada

picture in recent

showed

of

disposition

a

than sit

more

tures

their

on

p#r

hands and let the general picture
unfold

But,

while

was

ant

little

these
the

on

elements

had

buying side, it
more import¬

important
bond

terval.
.The

rather

sellers

stock

or

in

,

not been
either
the
in

markets

the

wide

fraternity

for

had

issues Which

new

shares of

&

Co.

convertible

Electric

tomac

million

ran

management

€sso
THE FL1NTK0TE COMPANY

1,734,865

stock

slated

debentures.

STANDARD OIL COMPANY

'

New York 20, N. Y.

Stanley C.

—

Snow has become associated
Lee

Higginson

Federal

I INCORPORATED

with

Corporation,

$4

50

declared

payable

of

close
A

business

record

has

March

Common -Stock

Berkshire
The

share

1957

1,

Berkshire

a

the

on

March

able

of

declared

of

15

of

close

of

of debentures

due

per

12,

the

on

of

March

will

offer

folk &

manufacturing and
ing

industries

issue
and

air-condition¬
included

and

of

uranium

stock

offered

mining

Earlier in the week

Public
bonds

Service
had

Co.

bonds

Serious

No

1957

President

•••••••••

PACIFIC
•

BROWN

this year a

ym

York

day the

in

the

-to

scope

issue

new

escape

the

But viewed

of the
section

now

of

Feb.

is

the money market.

is

convertible

business

debentures

V

will

25

be

able

to

the Com¬

February

11,

and

5,

•

31,

and

•
•

1957

ONE-HALF

on

•

for

par

*1,

,j ^

the

stock

common

value),

1957,

to

($10
Mar.

payable

stockholders

$1.50 per share

•

record

STOCK, payable April

•

declared

by

•

Directors

on

or

Feb.

15,

the

shares

held 4

that

on

date

to issue $35

The market has been

edging

•

of

declared

shareholders

DIVIDEND

a

COMMON

on

1,

of

1957

record

1957.

of

•

b. c. Reynolds. Secretary

^
•'

•

...

.

*

'M

■ V*,•

•

■

-n't

Cronmiller, Jr.

J ice President and

*•••••••••••••••••*

Secretary

Pittsburgh, January 31, 1957

with

bonds/to have

quarterly dividend of
twenty-five cents (25c)
per share on the Common
Stock of this Corporation

AIRCRAFT RADIO

I

CORPORATION

J

Boonton

holders
ruary

|

!

Dividend No. 96

J

On January 31, 1957. the Directors of Aircraft Radio Corpora-

NATIONAL
r

of

payable

record

COMPANY

Feb¬

OF PITTSBURGH PA.

1957. Checks

28,

will be mailed.

141st

,

I

CITIES

SERVICE

COMPANY

Board

declared
on

of

its Common stock,

dividend

a

twenty cents (20c)

per

the

of

common

stock

of

share
the

on

Com-

j

Philadelphia), Pa.

|

January 25, 1957.

pany,

27,

■

1957, to stockholders of record

j

JOHN

payable March 11, 1957, to stock¬

at the close of business Febru-

j
J

j

ary 13, 1957,

'

FLOR

OE

TOM

MOORE

at the close of business
ERLE

G.

February 15, 1957.

CHRISTIAN, Secretary

|

payable

H. M.

February

KINGSLAND, Secretary

today declared

dend of
the

on

dend

|

per

DECLARATION

a

com¬

cash divi¬

Fifty Cents (50*)

a

share

capital stock. This cash divi¬

i

|

Cities Service Company

DIVIDEND

The Board of Directors of this
pany

has

of

NACE

Treasurer

j

share

Directors

holders of record

declared

I

quarterly dividend of sixty cents ($.60)

a

tion

|

Dividend Notice
The

J

I

CHARLES L.

1

UNION

FIRE INSURANCE

March 15, 1957 to sharp-

|
{

New Jersey

,

I

declared

was

j
<

fi

v

RUSKIN

•

CINCO

•

PRINCE

HAMLET'S. SE1DENBERG&CO.

J

MELBA
•

•

S

will

be

0

the

0

6,1957.

close

March

27,

of

0

business

if

AMERADA

HENRIETTA

paid

1957 to stockholders of record at

PHILLIES • WEBSTER • ROYALIST

f/AyCM.-

!§!;

March

Treasurer

February 5, 19.57

AMERICAN

&

TWO

FOREIGN
RECTOR

the TT
POWER

STREET.

NEW

COMPANY

INC.

i
COMMON STOCK

dividend notice

important

DIVIDEND

The Board of Directors of the

Company,

at

a

meeting held

dividend
share
for
to

ord

of

on

the
at

20

the

payment

a

quarterly

cents

Common

March

close

per

Stock

11.

1957

of

rec¬

shareholders
the

estPenn

Electric

Company

v

Thi-

this day, declared

j

W

RICHFIELD

YORK

of

business

February 11, 1957.
Holders of the old stock

dhidcrftj! will

tributed

to

the

shares

have- been

holder^

urged

exchanged
to

which

entitled

of the

cents

Directors,
a

W.

Via

R

Company.

U.COOYEN.

President and Secretary

(Incorporated)
at a

regular quarterly dividend of

share

March 15, 1957,
of

to

———

meeting held January' 26,
seventy-

stock of this Corporation for
the first
quarter of the calendar year 1957, payable
per

Quarterly Dividend
on

on

stockholders of record

at

the close

business February 15, 1957.

the

COMMON STOCK

yiMt

PER SHARE

Payable March 30, 1957
Norman F. Simmonds,

February 29, 1952.

to communicate with the

e

1957, declared
five

un¬

Reorganization
Company/-which became

II.




such

der the Flan.of

Executh

January 25, 1957.

ate

The Board of

old

Stocks

until

for the Pew Securities
those

the

Common

Corfi party

effective

are

holders of

Preferred arfd
of

be dis¬

not

RICHFIELD
Oil
Corporation
Executive Offices: 555 South Flower
Los

Ange'es 17, California

Secre'ary

m

•

Treasurer

I

»

•

•

G. F.

NOTICES

»

payable

shareholders

record F(eJ)ruary 11, 1957.

30,

of 70c per

STOCK,

to

Jan.

A

DIVIO<E.NO

*
•

Board

million of first mort¬

gage and collateral

up

•

of

•

impressive.-

•
•

was

1957,

rights expiring on March 15."
,•* United Gas Corp. has registered

sev¬

eral weeks the comeback has beeft

I

1957,

March

Senior Vice President

subscribe

ONE

to

share

1957.
*

'♦

S. W. SKOWBO

-

of

1957

Also

ihe close of

at

declared

March

PREFERRED

April

1, 1957, to stockhold¬

of record

ers

NOTICE

A regular
quarterly dividend of 50 cents per share

•

Stock of this Company
declared payable

March

readying its $55 mil¬

on

ending

has

(11/2%) PER CENT

been

has

DIVIDEND

for $100 of debentures for each 25

likely

observer.

period of

a

on

mon

receiving stockholder ap¬
proval this week.
Holders as of

recovery

average

over

()pf 25^ per.flhaj#

Directors

DIVIDEND

19,

ap¬

of

quarter

A regular quarterly dividend

since

Watching the market from day

Board

on

Consolidated Edison Co. of New
lion

to

:
•

PRODUCTS

FOREST

•
•

•

H.

Engineered Pulps and Papers

bit, there does not

being made

Yields Taper Off

N.

corporations

be" any general slowing
judging by the steady, calls

down

huge stock offering was made by
bankers
"standing 3 by" on that
"rights" offering.

DIVERSIFIED

to

pear

stantial "layoff" of Socony-Mobil's

BERLIN,

I

FINANCE CORPORATION

•

COMPANY

Nor¬

on

Retreat

few

"~-

Plaza, New York 20, 14. Y.

Treasurer

altered" expansion plans for

have

sub¬

a

and

of

11,

February 6, 1057.

Nibroc Towels—Bermico Pipe *

Although?^

Oklahoma

of

million

close

the

February

on

WILLIAM FEICK, JR.,

v

-

issue of

an

well and

gone

cates.

!an

units.

as

$6.4

Western takes bids

stockholders

to
at

divi¬

March

on

MALCOLM G. CHACE, JR.

January 31,

$2.9
million of equipment trust certifi¬

aircraft

the

1957,
record

Jan¬

on

This

1957.

1,

while.^ickel Plate Railroad

ica .shares

share

payable

business

30 Rockefeller

record

February 8, 1957,

for

the gamut from a large, secondary
in staid Aluminum Co. of Amer¬

through

is

1957.

31,

Po¬

up

■i

capital stock of

per

uary

Power Co. has $30

bids

JERSEY)

a

the

on

cents

dend

1957.

payable March

business

pay¬

holders

to

55

1957.

cents

Stock,

Common

the

at

Hathaway

dividend

Cash Dividend

the

1957, to stockholders of record

15,

Hathaway, Inc.

directcrs

Inc. have

t,

declared

been

NEW

has declared

1957,
at

quarterly dividend of $.60

share

IN

The Board of Directors

i

the

on

15,

March
of

stockholders

per

Preferred

Cumulative

to

4-4-

been

has

Stock

NOTICES

dividend of $1.00

quarterly

share

Street.

DIVIDEND

Treasurer

&

of

A

Mass.

'

SCHOENER

Secretary

(Special to The Financial Chronicle)

BOSTON,

1967

1957 to holders of record February

11)5 7..,

EUGENE

Joins Lee Higginson

per

has

additional

offering to' shareholders, while
argt^due to open books
$12,281,100 of R. H. Macy &

Co.

a

by

11,

be

pe sold ins the U. S.
of

February 26,

Mont¬

—

Agnew.

$1

stock which will

the

30,

extent
of
approximately $.82
(subject to
adjustment after independent audit of the 1956
Income Account), out of its net income for 1955
to
the extent
of approximately
$.31, and, out
of its net income tor
prior years to the extent
of
the
balance.
This dividend
is payable on

Scott & Co. have opened

under

CORPOBATIOW

January

„

The Board of Directors of
Lehigh Vaiiey ©oat
today declared a dividend of &.0J
per share on
its $3 Non-Cumuiative First Pre¬
ferred Stock out of its net income for 1956
to

Corporation

Peyton A. Randolph. Mr. Randolph
has been a partner in
Randolph

deben¬

bankers

in¬

choice

of

range

subordinated

Anaconda

on

investing

million

plus 3,750,000

shares

*

of the

way

had

they

$75

common

will

noted also that

perhaps,

will

offered in units of $100 of deben¬
tures and five shares of stock. Of
this about ^$31,250,000 of securities

itself.

done

offerings

Pipe /Line's

30-year5,

1

to do little

corporate

;

,

NOTICES

COAL

branch office in the Smith Build¬

a
.

pf,the. business on sched¬
ule is of the negotiated
variety.
Largest ; of ';ihe several issues
likely to reach market is Trans

less out

or

a

Co., 500 Gris-

VALLEY

the

GREENWICH, Conn.
gomery,

the bulk

companies.

They had been

a

taper off sharply next week, pre¬
sumably d;pe to the banking holi¬
day as Lincoln's Birthday is ob¬
served in many areas.
And again

little

no

"Breather"

New

reawakening of
interest on the part of large-scale
institutional
investing
interests
such as the major pension funds
and

Takfng

-

this

week, especially yesterday when
it encountered a rush of offerings.
by

level.-

to

affiliated

Montgomery, Scott Branch

ing

rather
it

upon

to "2fc.75%

3.60%

The corporate new issue market
.

around

basis

become

E. Dunn &

LEHIGH

M.

DIVIDEND NOTICES

Here the rebound has been
4.25%,

Fred

—

each 10 shares held.

recovery has been evident
also in thgfaeasoned bond market

a

Mich.

has

S.

The

though irpa somewhat lesser

DIVIDEND

S. E. Dunn Adds

Corp. is

additional

be

ratio

Gas

offering

an

of

oiiaies

And

&

Record Date Feb.
Declared

26, 1957

February 6,

1957

WEST PENN ELECTRIC SYSTEM

Monongahela Power Company
The Potomac Edison Company
West Penn Power

Company

48

Financial Chronicle

The Commercial and

(712)

.

.

Thursday, February 7, 1957

.

ously

BUSINESS BUZZ

not

rantin'

and

leaders,

Washington
Capital

JL. "tuw

capital is about to witness the
seeming paradox that something
"which
can't happen here"
is
in fact about to happen.

vertly
'

is

This
tion

full-scale investiga¬

a

special Senate Com¬
mittee, of labor racketeering. It
is now reported that the special
committee is really going to do
a
thorough job on organized
by

world

embarrassing

questions will not be confined
only
to
the
sweet-smelling

been the pampered

In

Eisen¬

seeking

been

has

back¬
debili¬
Act.

Taft-Hartley

the

of

recently,

seri¬

one

no

try

to

Big Labor by

ing its demands for some

Until

to-

houses

with

the

beating

country in public hearings, but
this

created

comparatively

a

because no one in
leadership position was ready
to make a frontal assult against

John

conservative

rating

in

high

Arkansas,

McClellan

L.

of

Last

Senate
Labor
subcommittee did quite a job
on
abuse of pension funds by
union managers. This, however,
year

not

was

as

citadel

There

labor.

of

was

political profit in protecting the
funds

with

rank

the

of

motive

This

motives

the

this

Bu¬

Investment

unregu¬

lated. Furthermore, the
Government

is

dollar

Federal

flirting

out-

landishly with all pension funds,
.seeking to tease
ibato
sured

cajole them

or

government-in¬

financing

extra-

loans,

housing

tmdgetary financing for military

liousing

in

buildings,
host

public

and

bothered

be

a

not

in

Arkansas

"Schultz?

noted

that

the

over

the

happened that
the

at

(Goldwater, incidentally, is

-

brash

objectives

l»olitical
only

of the Dem¬

some

onto

need

Regulation

just

reached.

whose

Memories of 1932
even

the

purest of Big Labor boys to
fight to the death against
a
general
inquiry
into
labor

especially
when
one of the current objectives of
some
organized labor groups is

racketeering,

debilitate

to

eteering

Anti-Rack¬

the

Act,

against

directed

union labor.

with

Persons

could

tell

matter

Big

how

such unions

United

or

long memories
Labor that no

innocent
as

may

be

the United Auto

Workers

Steel

of

racketeering practices, an ex¬
posure by a Congressional Com¬
mittee day after day, week after
week, of mal-practices in other
unions

is

bound

to

create

unthinking
that

public
organized

all

the

impression
labor is a

racket.

It

union

a

reprisals

and

state

and political views
possibly give him the
slightest ambition for the I960

Presidential

nomination.

of

crop

be

stock

inquiries

the

current

leaders

was

not

early 1930's, when

market

created

informed
entire

that

labor

around in the

the

McClellan

and

the

impression

commercial

banking

would

that bill

fit

perfectly, being rated besides

good

causes

•of the

its

slings

the

of

of that irritation consists
ornate

headquarters pal¬

Washington for the enhance¬
of

ment

One

their

of

egos.

the

most

ornate

palaces,
complete
with
telephones in the bathrooms, is
the headquarters of the Team¬
sters

Union, right

park
building.
By coincidence, it is the Team¬
across a

from the Senate Office

is

which

Union

sters

benefit¬

ing from the first of the in¬
quiries into labor racketeering.
Another

sheer

coincidence

boss, backed Eisenhower for




re¬

own

views.]

who

men

position to have

a

has

politically,

Bill

does

as

reprisals
who

there

and

a

few

avowedly

are

can

of

complex¬

the

ities of motives, however, it was
the

forthright thumbing of the
at McClellan

nose

which

sters

New

by the Team¬

provided

final

the

push to put this thing across.
"Business

Too"

Racketeering

happened

when

was

tne

before McOpera¬
tions Committee, refused to give.
As
for
political
grounds, the
Teamsters were right in saying
the GO Committee has no juris¬
called

Teamsters,
Clellan's

Government

diction.

As

legal

a

the

however,

dominant

the record, it would ap¬
that the committee was
charged with investigating busi¬
ness
rackets
also, as well as
labor rackets, to save the face
of labor. Actually, most of what
are
literally known as rackets
require the cooperation, often
willingly, often under labor co¬
ercion, of business management.

if the
the

of

pre¬

Senate

offending precious Big L Labor,
tongues
would
have
wagged
that

the

and

John

climb

Teamsters

had

better

off.

McClellan

was

decision

committee
of

to

the

mittees.

tee

create

a

Senate

Labor

latter

looked

arrangement.

consist

members

mem¬

dinner

at

;

Bond Club of

Chicago 46th An¬
Meeting at Sheraton-

nual

Blackstone Hotel.
Feb.

1957

21,

Milwaukee

(Milwaukee,
Bond

Wis.)

annual

Club

roughly

relatively

a

like

The

promised allout investigation of labor rack¬
eteering.

a

legal
bet¬

commit¬

of

free

a

What competent labor observ¬
ers

say

is that certain gentry in

organized labor have been aid¬
ing and abetting the idea of a
charge by the Congress into la¬
bor racketeering.
Such gentry
associated with the CIO.

are

March

1957

1,

(Philadelphia, Pa.)

Investment Traders
of

Philadelphia

Association

Mid-

annual

Winter Dinner at the BellevueStratford Hotel

by

a

March 8, 1957
New York

sociation

1957

Toronto

at

(New York City)

Security Dealers As¬
anniversary din¬

31st

the Biltmore Hotel.

at

March 8,

ation

(to be preceded
and receptioh),

luncheon

(Toronto, Canada)

Bond

Traders'

Associ¬

25th

anniversary dinner
the King Edward Hotel.

Mar. 18-20,

1957

American

(Chicago, 111.)

Bankers

Association

11th National Instalment Credit

Conference.
April 21-23, 1957 (Dallas, Tex.)
Texas

Group

Bankers

meeting

of

Investment

Association

at

the

annual

Statler

Hilton

Hotel.

and

fixed

was

of the forego¬

the sit-down strikes in the auto
factories to have

It is with respect to the Team¬

Com¬

Operations

This

It

special

of

not merely to resolve

objection.
ter

backed, despite

consisting

Government

up

annual

Feb. 14, 1957. (Chicago, 111.)

ner

I

Out

none

ing factors explain why it is
possible for the first time since

right

were

McClellan

Fall

Actually

had

Teamsters

mood

"Thieves"

defense,

its leadership was to avoid

bers

33rd

the Hotel Bradford.

For

Chronologically the next thing

and

(Boston, Mass.)

Boston Securities Traders Asso¬

dinner at the Wisconsin Club.
pear

Teamsters Help

that

Feb. 8. 1957

ciation

organized labor.

Regardless

Field

200%

watch¬

the rights and interests of

dog

Investment

put

Know-

Eisenhower

the

for

plump

to

Labor

sters

certain

and

other

and

older AF of L unions that there
have
and

been

the

most

frequent

May 6-7, 1957 (Richmond, Va.)
Association of Stock Exchange
Firms Board of Governors meet¬

ing at Jefferson Hotel.

persistent charges of rack¬

some

eteering.

from

AF

The

marriage

of L and the

CIO

of

the

has obvi-

TRADING MARKETS

is

Botany Mills
A. S.

re¬

Campbell Co. Com.
Fashion Park

Indian Head Mills
Goldwater's

sentiment

Part

factor
to

in

have

stirring
a

go

at

United States Envelope
up

tively

young

going

a

and

as

thorough¬

tant

in

invest¬

ate.

Goldwater has been

conservative
the

United

as

is

States

able.
He

His

has

thrusts

Morgan Engineering

the

Big Labor boys is Barry Goldwater
of Arizona, a coiiipara-

labor

for

upon

COMING

election.

the

on

dependent

subordinate.

the "Chronicle's"

that Dave Beck, the Teamsters'

un¬

took
investment.

of

these

whose

or

in

the

National Co.

Carl Marks

have

FOREIGN

and

something gets illuminated

SECURITIES

50 BROAD STREET

He is

hurt.

TEL:

HANOVER 2-0050

Co. Inc.

when
puo-

•

SPECIALISTS

Sightmaster Corp.

NEW YORK 4. N. Y.

LERNER « CO.
Investment

Securities

TELETYPE NY 1 971

10 Post Office Square,

helped call attention to

racketeering,

&

Riverside Cement

ex¬

Sen¬

hitting

at the unions for months.

deposit

few

the big unions have erected

aces

like

and

of
the

weight
physical

banking world consisted
of a lot of people totally
ir¬
responsible
to
the
customers

they

the

ahold of vapor.

ques¬

with

end

no

One-

around.

beyond

are

labor

way

politicians

many

parties
irritated

,

that

ment

money

provide

to

and

On the other hand,

A

in

as

exceedingly able hombre.

an

Another

may

bread

Deal.)

cannot

tion

expect

of

land,

Senator
bailiwick is proof

home

against

both

would

Re¬

circuses
and the country ever gets sati¬
ated
therewith,
Goldwater
is

political

of

sense

organized labor

whose

might help this objective to be

One

"modern

If

fails

publicanism"
perpetual

irritated

were

a

works!"

friends of Labor and
a

kept his skirts clean, not being

hand, if it just

flamboyantly displayed
by the Walter
Reuthers, et. al., they might sick

to

dear

which

hearts,

money.

watch.

to

man

occasions

all

on

union

In

Services.

leaders

ocratic

go

every

and may or may not coincide with

just don't want to create the
singie family is running

whole

licly, it is always easier to in¬
vestigate.

Irked
other

would

EVENTS

one

On

we

one

the

Government

the

Armed

Oh,

—

impression

the

by

tbey

toward making

way

particularly

Operations Committee of which
McClellan
is
Chairman,
has
about as much inherent jurisdiction over this subject matter
as
the Banking Committee has

*

other

such

pretation from the nation's Capital

%

position to

a

farm mortgage loans, and a

of

the

If

achieve

[This column is intended to

power

left

funds

nice

a

multi-billion

of

is

Politicians

Big

regulate

to

loves

chunk

of

moves on

highways.

flect the "behind the scene" inter¬

Q>Gflft

is

correspondent

There is

report.

allied

also

in government, which

reaucracy

Nearly

file.

and

was

so

throt¬

can

a

responsible

and

gent. As for what is NOT on the

.a

frontal assault on the

a

trucking

should

them, and

walking delegates. It also might

the Teamsters.

even

and

other

with

originated

racketeering
Senator

McClellan

of

some

the Teamsters Union around the

organize

objective,

long

investigating labor

for

minor flurry

trailed

subcommittee
the practices of

House

a

to

tle any commerce that

shows,

record

the

as

idea

a

ago

years

control of labor;

over

your

ques¬

high security
in the secrecy of motives for
this thing, and the security is
better protected than the Penta¬
gon
protects
the
secrets
of
guided missiles.
It might be noted that John

few

on

completely that they

an

far

So

the

not at this time

A

they
out

Origin of Inquiry

record,

movement.

come

Teamsters

posedly
labor

of the old AF

boys,

to

"streets

ously dared

to tackle the sup¬
politically omnipotent

discrediting of

a

more

give the

aim

the

worst

committee

of

line

in

or

Defensively, Beck's Teamsters

tarred

got

of¬

hope, a
top and

take

cleanest

the

"when did you stop

wife"

couple

chance

the. raids of

process

investment

along

baby of both
Even

parties.

to appease

the

di-

both

ambitious

government.

,

ffKjlitical

Offensively
a

re¬

pugnacity

out against

speak

yet

even

sufficient

covered

organized labor has

Hitherto

tation

not

is

of L craft unions would

tioning.

Union.

Teamsters

hower

has

grievously

fensive and defensive.

Securities

banking

commercial

is

motivation

The

the SEC.

the

backed by a powerful
of organized labor it-

Labor

titled.

'
m

strait-jacketing
It is obvious

present

through
that

a

and that its

labor

the

of

segment
/self.

sof¬

securities business

tened up the

for

inquiries

Senate

Those

bonds

the
investigation
of
racketeering will be made
possible only because it is co¬

O'TOOLE, O'TOOLE,

and SCHULTZ

This

of CIO

type
the

at

Thus,

O'TOOLE, OTOOLE
—

chafe

labor

V/^lf

OTOOLE, O'TOOLE,

WASHINGTON, D. C.

harmonious.

rarin'

matrimony.

•

/J
gJ
jljL I l/\A/

BeWnd-th«*Scene Interpretation*
from the Nation's

•

been

Some of the younger, especially

Boston 9, Mass.

Telephone

I

Teletype

HUBbard 2-1990

BS 69