Full text of Commercial and Financial Chronicle : January 12, 1956, Vol. 183, No. 5498

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

*

.

OF M|

r

ESTABLISHED 1S39

JAN 16 19 55

Tk e

j ""MB**

an

Chronicle

Financial

Reg. U. 8. Pat. Office

New York

Number 5498

Volume 183

EDITORIAL

We See It

As

political merits of President Eisenhower's
Message we leave to others
better qualified to pass * judgment upon it. If,
however, we are entitled even in an election year
to
a

Mr.
Prof. Ryan examines the branch

banking question with
reference to banking facilities, and takes issue with the
Comptroller of the Currency that "contrary to the popular
belief that people residing in States where branch bank¬
ing is prohibited are served by fewer banking units, the
figures reveal they have proportionately more banking
units to serve their needs."
Says the Comptroller's
analysis fails to take into consideration many factors
which are germane to his conclusion. Holds State by
State comparisons of the relation of population to bank¬
ing units are invalid, and the only valid test to the
adequacy of facilities is the number of square miles
served by each banking unit.

intelligent document worthy
respect and confidence of the matriculate,

this effort of the Chief Executive falls far short

reasonable standard. Experience teaches
must tolerate in such messages a good
deal of ordinary buncombe in terms too general
and vague to have much meaning. When, how¬
ever,
broad programs which obviously imply
large additional expeditures in the years to come
are
coupled with soothing promises of balanced
budgets or better during the interval prior to the
time when such proposals begin to burden the
Treasury the time has evidently come for some
plain words.
any

that

we

We

can

not escape

In his Annual Report for 1954,
and

own

ited.1

.

budget is

a

indirect,

branch

much
There is

Review

finance industry

credit, and the

on

has

him

aided

—

we

are

told

—

by

making credit purchases easier. We
are
now
faced with various credit
restraint

coiM

consumer.

cuss

this

From

situation.

examination

popular

meeting to dis-

I would like at this

.

...

in order to hold

devices,

back the
/

of

the

own

my

situation

branch

today,

serve

their needs."2

I do not

sumer

comments"

concur

basis

the

on

Silbert
anywhere, and I plan to give you the
Theodore
so that you can judge for your¬
self. I think Washington has been unduly alarmist, and
»while I am a conservative, I see no point in ringing the
fire alarm when there is not even a trace of smoke.

facts

with the conclusion and contend that
"factual

John

Ryan

of

Let

the Comptroller's analysis and figures may

misleading and that

somewhat

a

more

be somewhat
detailed analysis

Continued
1

2

Second

Ninety
1954,

Ibid.,

p.

REVIEW AND
Outlook

pp.

Annual

Report

the

on

Comptroller

page

of

the

28

*

♦An

ciation,

appear

just consider the delinquency rates on various

Continued

on

32

page

Cur¬

19.

will

us

types of consumer credit.
These delinquency rates are
our first indication
of trouble. If customers are over-

12-20.

address by Mr. Silbert

Angeles,

Los

"Chronicle's"

before the Los Angeles Finance Asso¬

Cal., Jan. 4,

include

1956.

Annual

next week and, as in former years, will

OUTLOOK ISSUE

Issue

of

nothing which might be con¬
even mildly alarming.
Con¬
credit is not over-extended

NEXT

WEEK—The

ji,,.

personal views of Leaders in Industry, Trade ?.nd Finance on the outlook for their respec¬

DEALERS

with the

us

sidered

31

and

credit. Financial

commentators have all impressed
gravity of the situation. The con¬
sumer, we are told, has gone in over
his head. He has bought too much

I find

rency,

ANNUAL

topic which seems to arouse more interest

paper

banking is prohibited
are
served by fewer banking units,
the figures reveal they have propor¬
tionately
more
banking
units
to

Over the long-term a balanced
sure index to thrifty management—
page

higher."

experts in Washington, bankers in every city, and news¬

bank¬

.

on

no

today in financial circles than consumer

belief that people residing in States

let the Presi¬

Continued

;

families and contends,

anything, volume of such credit "could safely go

if

where

we

story:

,

maintaining high level of production and employment.
consumer credit to sharp

rise in number of middle-income

comparison to

elusion that "contrary to the

over-

Attributes increased volume of

the Comptroller of the
comparing the number

banking unit, he arrived iat the

not

Says auto, personal,

not justified.

are

is

and that Federal restraints, either

too easy

appliance loan delinquency rates are lowest
World War II and stresses role of consumer credit

since

in

banking, and in States
banking is prohib¬

In relating the

or

credit

consumer

and home

the number of people served by eaph

public office is, indeed, a public trust. None
of its aspects is more demanding than the proper
management of the public finances. I refer now
not only to the indispensable virtues of plain
honesty and trustworthiness but also to the pru¬
dent, effective and conscientious use of tax
.

direct

which branch

in

"A

money.

statewide

branch

area

judgment, some of the pres¬

promises. Suppose

dent tell his

study

maintains

nor

ing, in States which permit limited

groups

and dubious

a

Silbert

extended

type of banking units in States

permitting

the conviction that this is

now screaming for special favors
could make out a good case for misrepresentation

sure

incorporated

Currency

precisely what President Eisenhower has done in
this document. If details to be supplied later do
not substantiate this

Corporation

Standard Factors

President,

Fordham University

expect of the President of the United States

by

By THEODORE H. SILBERT*

By JOHN RYAN
Associate Professor of Economics

candid, consistent,

of the

Control oi Consumer Credit

Banking Facilities

State of the Union

Copy

a

No Reason (or Federal

Branch Banking and

The

40 Cents

Price

7, N. Y., Thursday, January 12, 1956

tive industries and the nation's economy in general during

1956.

State, Municipal

,

in

and;

U. S. Government,
State and

Municipal

;

<

STATE

Long awaited profits

Securities
telephone:

National Distillers
Chemical

from

could

HAnover 2-3700

Bulletin

iSsF

MUNICIPAL

NEW

BONDS

ARE NOW AVAILABLE

:

,

R.
WlLLlSTON & Co.
ESTABLISHED
MEMBERS

i

AND

BOND

OTHEA

HEW

STOCK

YORK
ANO

100S

STOCK

THE FIRST NATIONAL CITY BANK

EXCHANGE

COMMODITY

OF NEW YORK

EXCHANGES

DEPARTMENT

30 BROAD ST.,

115 Broadway, New York 6,

N.Y.

Miami

Beach

—

Bonds and Notes

BOOKLET

DRUG INDUSTRY"

year

Available

ON

J.

bank

Housing Agency

"INVESTING IN THE

corn exchange

:

Public

COPIES OF OUR

Division

substantial

be
this

CHEMICAL

AND

N.Y.

Rye, N. Y.

'

THE

Members New York Stock

Dept. Teletype: NY 1-708

DEPARTMENT

BOND

:

HARRIS, UPHAM & C°
120

Bond

REQUEST

Exchange

BROADWAY, NEW YORK

)

*•

Chase Manhattan
1

5

BANK

•»

:

f

I

34 offices from coast to coast

Net Active Markets Maintained

To Dealers, Banks and

First
TO

REMEMBER

IN

T. L.WATSON &CO.
ESTABLISHED

CANADIAN

1832

Members

THE

Brokers

SECURITIES
Commission Orders Executed

New York Stock Exchange

Wmithm&t

Canadian Exchanges At

American

<SctdAu>e4t COMPANY

Plainview

•

San Antonio

CANADIAN

Stock Exchange

25

BROAD

STREET

NEW YORK 4, N. Y.

•




Incorporated
COMMON

Regular Rates

DIRECT

WIRES TO

Tyler

-ARIDGEPORT

PERTH AMBOY

MONTREAL AND TORONTO

Goodbody a Co.
115 BROADWAY
NEW

YORK

upon

request

DEPARTMENT

MEMBERS. NEW YORK STOCK EXCHANGE
•

BONDS & STOCKS

Analysis

Dallas

Abilene

Air Products

On All

Teletype NY 1-2270

FIRST

CANADIAN

Dottimox Securities
Grpokatiot!
40 Exchange

Place, New York 3, N.Y,

Members New

and

other

Teletype NY 1-702-3

WHitehall 4-8161

York Stock ExxJkmagrn

Principal Exchamgem

111 Broadway,
WOrth 4-6000

1 NORTH LA SALLE ST.
CHICAGO

IRA HAUPT & CO.

Boston

N. Y. 6

Teletype NY 1-2708

Telephone:

Enterprise

1820

2

(158)

The Commercial and Financial Chronicle

The
Specialists for

-■

>

30 years

which, each week, a different group of experts
advisory field from all sections of the country
participate and give their reasons for favoring a particular security.

in

and

they

•re

Insurance Stocks
Our 95th Consecutive Quarterly

Comparison of Leading Banks

be regarded,
E.

offer

as an

of New

At the

not

rise

the

of

Dow-Jones

This company is in the business

Averages
the

past
years
of

Stock

t h
WOrth 4-2300

h

Teletype NY 1-40

BOSTON

Wires

to

sive,

M

...

Specialists

SCRIP

&

The

Members

York

American

120

Stock

Exchange
Exchange

Stock

\\
p
.

BROADWAY, NEW YORK 5
TEL.

ymtmmtmt

REctor

w&mm

"

fj

2-781S
,

v.

,

was

about 8%

bet-

■

.

■

for

...

oil

securities

somewhat different pattern than that of the general miar-

ket.

New

were

market

follows

|

"

'

,

a

The

high grade oil shares
such as Jersey, Gulf and Continental usually lead the pack as
the

industry

slump,

from

emerges

a

followed

by
the
other
shares of smaller integrated compames.
As
conditions
nnpiove
within

the

industry,

interest

m

the shares of the smaller compames
in
the group develops.
At
this

Trading Interest In

is

As investor confidence

companies.

Bassett Furniture Industries

Camp Manufacturing
Commonwealth Natural Gas
Life Insurance Co. of Va.

however, little or no
paid to the pioducing

point,

attention

restored

is

American Furniture

and

I

Lynchburg, Va.

LD 39

'

TWXLY77

This pattern seldom varies and
has not done

apparent
that

to

stage

vestment

to

so

date.

that

me

the

of

a

It

we

seems

at

are

pattern

which

in

suitable

time

for

in-

strong, growing, dyproducing
oil
companies.
From
this
group I have selected the shares

namic

of

as

Trading Markets

and well managed

the

General

Crude

Oil

Com-

Reasons for this choice

follows:

(1)

(2)

;

Record

of

(4)

frugal

manage-

Strong financial position.
Conservative

'

f{

•

ESTABLISHED

37 Wall St., N. Y.

1929

Tel. HAnover 2-4850

Crude

accounting

Oil

porated in Delaware
fill Reynolds Co.
as

a

result of

a

on

was

as

was

incor-

the Cran-

July 18, 1929,

merger of several

producing oil companies.
title

wild-

...

General Crude until recently
concentrated its efforts in Last
Texas but when tne trend to
deeper

drilling

turned

adopted

on

Name

Round Top

Raw

—

The

and

stonewall

Kent

County

prjncipaiiy
wj1jcj1

the

the

acreage

^reck

field

Qenera]_

rnatcd

Jones

mjiii0n

Ranch

on

Salt

enormous

discovered

was

Crude.

—

Liquid

Exports—I mparts—Futures

DIgby 4-2727

by

in

.barrels

of

excess

of

oil

in

450

place,

Qenerai Crude is the major owner




same

in

as

In

order

picture

to

get

_

NY 1-1557

Orleans, La. - Birmingham, Ala.
Mobile, Ala.
9

•

Direct

in

wires

to

branch

our

offices

the

accurate

as

JAPANESE
a

SECURITIES

possible of the cil and

as

gas reserves of General Crude Oil

may

to

have

unusual

investors

investors

with

with

appeal

-

vision—

knowledge

of Japanese potentiaL

Call

write

or

of the editors of "Oil and Gas

one

Journal," to make
cf

General

properties.

field

a

Crude's

Yamaichi

survey

producing

Securities Co., Ltd.

Much of the informa¬

tion

pertaining to every oil field
^in Texas is on file with at least
of

one

is

Mr.

t;e

result

A

The

Kornfelt

end

Established

111

sub¬

cf

1897

Home Office Tokyo—70 Branches
Brokers

the State's agencies.

which

report
mitted

Investment Bankers

Broadway,N.Y.I COrtlandt 7-5680

his

his estimates of General
cil

in round

in

reserves

figures is

each

Percentage of Field

Members

Kirby,

Middle

1,803,COO

ll

Parish in Louisiana. The
also

21,000, COO

Creek

virinitv

ni,,c

Uairmont flinty

This

latter

track is part of the famous Swenson

SRS

The

Ranch

of

company

West

has

16

wells

in

Kelly Snyder field.

producing

fields, such

operator

the

with

Unit.

a

A

of

In

addition

has

pany

lion

Unit

in

made

interest

in

station

compressor

the

first

injection

put into operation.

well

was

Results of

as

Amsterdam, Holland

re¬

HOV)R

Raywood, Eper¬

to

cubic

the

feet

developed

lated

to

dollars

the

Oil

cubic

trans¬
value

Company

and

emphasizes

low

price

ridiculously
its

when

make

the

day's market.
If the low

figure of 75 cents

used,

the

value

of

MANUSCRIPTS
INVITED
lj

per

barrel and 5 cents per mcf. of
gas
is

BOOK

which

at

stock is selling in to¬

common

SA]/ii\Q^

is

gauged,

trillion

a

Crude

large

gas

field

and

figures

General

tril¬

Raywood

above

run

These

com¬

half

natural

of

finally

feet.

above,

estimated

an

when

installed in January, 1955 and
gas

General

Looking for
we

at

Salt

Creek

have

been favorable,

wells

out

of

Location

a

total

of

80

in

the

Sourry County, Texas

1949*

Liberty County, Texas

1949

Hardin
Hardin

Clairmont

Kent County, Texas

Salt Creek

Kent

Fisher

County, Texas

County, Texas

and

ore,

$25
total

a

is

the

erals

through Min¬

Development Company (plus

holdings)

shareholders

and

CN.

financial
It's

topics.

Write

today

free.

Vantage Press, Inc., 120 W. 31 St., N. Y.
In Calif.:6253

Hollywood Blvd.,Hollywood 28

In Wash., D. C.: 1010 Vermont Ave., N. W.

Over-the-Counter

are

sure

minority
that

Quotation Services
for 42 Years

their

property is in good hands and that

large
them

1952

stock

1952

1952

booklet

of i this

family (Sun Oil Co.) through

individual

1950

Liberty County, Texas

on

dis¬

stock.

management

of the capital stock

1950

Raywood Field

common

million

and

Especially seeking books

business

New authors welcomed.

the

share

Learn how

promote

ownership of approximately 70%

1950

Liberty County, Texas

$195
per

publisher?

company in the hands of wealthy

Pew

1950

So. of Eperson Dome

cf

for

a

publish,

considered.

for

million

$100

over

outstanding

With

1948

County, Texas__.

gas

which

Company's oil is $170

Year

1948

County, Texas

Oil

million

In 1954 the
company drilled 58
net

Crude

can

tribute your book, as we have done
for hundreds of others.
All subjects
on

pressuring

Coral Gables

Beverly Hills, Cal.

million barrels.

might

2,600

leases

40%

Pittsburgh

•

•

•

South ard East Holmwood, the
reserves
will run over 230

very

Field

Detroit

•

Hollywood, Fla.

total

the

Mills

Chicago

but

future

some

gas

of

Nona

at

son

which,

Texas.

During 1954 unitization
of

Exchange Bldg.

Geneva, Switzerland

7R nnn

plus 78,000

Counties.

unitized

date.

acies ln Cottle, Motley, King and
Dickens

be

inay

exchanges

NEW YORK 4, N. Y.

14,000,000
counted

reserves

Trade

Exchange

is added the minor Louisiana
pro¬
duction and condensates from the

and 4,000 acres in the

ciairmnnt

other

Inc.

of

Cotton

Miami Beach

Secondary

company

3,200
additional
of the Jones Ranch in Salt
area

Board

Orleans

N. Y. Cotton

148,000,003

The above figures total 214 mil¬
lion barrels and if to this
figure

acquired

acres

Chicago
and

drilled in
and one

the company
counties
in
Texas,

Exchange
Exchange

Exchange,

19,000,000

NOTE:

Exchange

Cotton

New

4,500,030

Top, 22%

Kelly Snyder, 1%
which

Stock

Stock

York

Commodity

Mills, 24%

Round

m miUion barrels>

York

American

15,000,030

Yegua, 87 V2 %
Nona

New

New

or)C}ary reserve in this field alone
are
reiiab]y estimated at nearly

1953

H. Hentz & Co.

21,COO,033

Eperson South, 81%_.

Salt Creek, 47%

In

1856

No. of Barre's

Eperson Dome, 81%_.

Qeneraj Crude's primary and sec-

Other Activities and Developments

Established

field

follows:

as

0perator 0f this unitized field, Claytonville, 39%

anc|

Calcasien Parish, Louisiana

♦Participated.

about the

V

The Joseph A. Kornfelt Report

This field is esti-

have

to

was

Brazoria County, Texas____

Mour^d

Exchange
Exchange

previous year.

Counties,

acreage

1947-48

East Holmwood

Stock

Stock

calculations and the break¬

Claytoriville

Refined

3,783,030

was

of

Nona Mills

SUGAR

1354

Crude's

Fisher County, Texas

Damon

in

many

Kountze

STREET

duction

1954,

New

oil wells, t ree gas
wells,
dry holes. Crude Cil pro¬

31

down

Hull Field

WALL

NEW YORK 5, N. Y.

and

company was fortunate
developing large amounts of
productive acreage in Kent, Fisher,

Kelly Snyder

99

York

HAnover 2-0700

24

were

jn

Present

Dec. 26, 1933.

American

Net rrsults

Texas, the

Recent Field Discoveries

LAMBORN & CO., Inc.

which it participated.

West

Nolan

to

was

General

4

successful

New

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

Hardin County was completed and

practices.

SreetiecmiCompaTv^

the

°

acres

and

of

effective with General Crude the

(5)

TMT Trailer

vantage

per-

Income tax conscious.

(3) Able

holdings or lease
of acreage in or
fields, LlUS taking ad-

new

the great

successful

ment.

Reeves Ely Lab.

their

catting of others,

are

formance.

Carlisle Corp.

Kirby Lumbar

pronounced
oil industry

is
finally turned to the shares of the
strongest producing companies.

pany.

Botany Mills

more

improvement in the
becomes
apparent,
attention

indicates

8TRADER .TAYLOR & CO.,Inc.

erboard

amounts

..

M'C'PONNELI&fO.

to

near

heavy
A
is in prospect for 1956,
4%
better than
1955,

■-

years

Members

Members

policy of Company,

a

companies which prefer to check-

Herbert E. Greene

1954.

t-

Since 1917

trast

m\||f||

high,
a n a
product
prices

ter than

recent

Steiner, Rouse & Co.

Coburn and Middle¬
brook, Inc. employed Mr. Joseph
A. Kornfelt, an
independent and
This policy is in conhighly regarded petroleum geolo¬
that of many other oil
gist and engineer, who was also

account.

|||jj|

too

probably

in

company

inven-

which in turn

RIGHTS

The

Bought—Sold—Quoted

Co.—August

Huber, Manager Stock Dept.,
Spencer Trask & Co., New York
City. (Page 35)

as

bas been committed to

WKBwHm

M

runs

good year

in

evidenced by
discoveries in the following fields:
purpose

Louisiana Securities

Company—

leasing large blocks.of acreage to
|j|Wiprove up and develop for its own

exces-

tones

committed

operations in the
oil. It has been im-

for

ing its

Jj|
jjfll

when

refinery

an

large-scale

search

J

°*

summ®r

were

■'

in

It is primarily

company

Oil

American Brake Shoe

mensely successful in accomplish-

Ji
S

0*+,,

since

1954,

Principal Cities

W

im-

taken

a s

place

SAN FRANCISCO

•

WS

BJ9|
MB'

industry

e

CHICAGO

•

PHILADELPHIA
Private

5

exploration

Hp'

Sub-

provement

Exchange

finding oil.

to

bull

stantial

120 Broadway, New York

Mfe, ^

two
the

market.

Associate Member
American

in

present

1920

of

Crude

prop-

blocks of acreage ip Louisiana,
Arkansas, Oklahoma, New Mexico, Illinois and Colorado,

participated in the tre-

Alabama &

Selections

Greene, Manager of
New
York
Office, Coburn &
Middlebrook, Inc. (Page 2)

producing wells located principally in Texas with smaller

Industrial

Established

beginning of 1955

Week's

Herbert E.

398

General Crude Oil Company

mendous

Corporation

General

nor

erties under lease consisted of
455,938 acres, upon which were

Manager, New York Office,
Coburn & Middlebrook, Inc.

have

New York Hanseatic

be,

to

sell the securities discussed.)

to

GREENE

Generally speaking, oil securities, with but a few exceptions,

request

on

to

HERBERT

intended

not

are

Thursday, January 12, 195

Participants and

Their

in the investment and

(The articles contained in this forum

and Trust Companies

This

Forum

A continuous forum in

Bank

York available

Security I Like Best

over

...

4

profits
over

is

vestors

a

should

period of

accrue

years.

to

National Quotation Burean

This

Incorporated
Established 1913

especially adapted to in¬
who

are

satisfied

Continued

with

46 Front Street
CHICAGO

on

page

35

New York 4,N.Y.
SAN

FRANCISCO

Number 5498

Volume 183

...

The Commercial and Financial Chronicle

(159)

INDEX

Don't Expect Fast and Fabulous
Market Gains in Ford Stock!

f

—Theodore

common

the

risks and competitive hazards

The Outlook for

pany.

iii
i*

,

it,

stand

Ip

my

here

are

answer

business

the

ques¬

others

risks

who

and

have

—Jackson E. Spears

are

WALL

hazards
in

as

'
•

BASIC ATOMICS

Thfe'Challenge °f Technology—Haldon A. Leedy
r

"

as

the

industry. We are op¬
erating an automobile company
against the stiffest kind of com¬
petition.

ask

may

conse¬

a

of

quence

study of

your

the

There

Ford

about

Motor Com¬

nary

t i 0

t

s

n

t

a

lations

with the Securities and

just

ago.

\

-

At the outset,
that
we
take

Exchange

two weeks

over

.v

.•

'

•

I should tell

•

you

considerable

a

of

pride in the facts and
figures revealed in the prospectus.
We believe they tell a rather exciting story of the progress that
can
be accomplished under free
competition through skilled research and engineering, imaginafive

styling

10

Circular

!

-

Employment Opportunities—Roger W. Babson

plants and equipment,
accounting,
hard
selling,
progressive labor relations, and,
most
important of all, a good
management team.

cost

presentation in
the prospectus indicates how the
past 10 years of Ford Motor Compaid off in
profits. This is a specific in which
I understand you gentlemen have
a particular interest.
pany's

has

progress

financial

These

facts

testify
quite clearly, it seems to me, that
Ford Motor Company is a sound
profitable company, a
growing company and—thanks to
company, a

Ernest

Breech

R.

and

col-

our

leagues—a company which management has built well for the
future.

of my I remarks, I characterized this meeting as the prelude to an event of
"no
small
importance"
in the
history of Ford Motor Company,
the

At

beginning

That understatement was delib4

erate

it

because

—

has

there

that

to

seems

been

me

certain

3

amount of overstatement about the

potential value of Ford stock. Of
course,
this would not be so if
everyone had read—and carefully
read—the prospectus.
All of the
facts

pretty
but

are

people

there.

are

But I think some

thinking about their chances for
'fast and fabulous financial gains,
-After considering the
,

m

„

automobile

predictions and

specu¬

fair

12

fix

on

ho

this

mail I have
....

4<J

.

now

that

I

in

the

proposed

sale

of

Ford

Motor

Com-

a™,"j£7,

1956<

WESTERN OIL
Mostly Optimistic

do

not

many cars and trucks
Ford Motor Company—or the in-

Justry

year,
Of one thing I am certain: 1955
was the best year, measured by
anY yardstick, in the history of
Ford Motor Company and the

It is my personal belief that we
will have a good year in '56—
but I don't know for sure and I
don't think any of my colleagues

either,

Frederick

Shull Asks Emulation

20

Text of President's Special Farm Message.

23

Richard Spitz Urges Abolition of All Market Supports

(Letter to Editor)

30

Write Their Own Ticket?

To the bulls in the audience, I
probably sound too bearish. The
bears may think I am not bearish
enough. Actually, I am not speaking for either point of view.
I
am
simply
discharging what I

consider to be
obligation.

a

1

(Editorial)

Ford Motor Company's ability to
participate in that growth. Nevertheless, I consider it my duty to
say a word of caution and to hope
that you will consider m,y views
discussions with prospective investors, particularly the
small investor and the new investor.
m your

Officially, this is our "due dis¬
gence" meeting today. However,
it is my firm conviction that none
will

have

exercised

Coming Events in the Investment Field

'8

Dealer-Broker

Investment Recommendations

Pacific Uranium MinesCo. *

Government" 13

the News—Carlisle Bargeron

i'.':'

'•

Circular

12

-.;

//-

'

>

-

*'

•.

'*

39

Mutual Funds

Request.'

on

**Prospectus
.

Indications of Current Business Activity

?

Request.

on

;/•./:'

-v

.

'

36

IPe maintain
than

250

trading markets in

more

over-the-counter securities

I
NSTA Notes

47

News About Banks and

Bankers

INC.

15

HA 2-0270
Observations—A. Wilfred May

5

Our Reporter on Governments

27

40

Exchange PI

J N.Y.

Teletype NY 1-1825 & 1-4844
Direct Wires

to

Philadelphia * Chicago * Los Angeles
Our Reporter's Report

47

Public Utility

37

Securities

Railroad Securities

Securities Now in Registration..

Lithium Corp. of

18

40

America

unless, in the weeks
make certain that potential investors in Ford stock
have the realistic picture shown
by the prospectus not only of our

Prospective

Security

Offerings

Lisbon Uranium

45

we

for

prospects

future

profits

Security Salesman's Corner
The Market... and

16

You—By Wallace Streete

'

The

Security I Like Best...

2

1

Drapers' Gardens, London,
land, c/o Edwards & Smith.

New York Stock Exchange

TELETYPE N. Y. 1-5

Chicago

•

Glens Falls

,

Gulf-Sulphur

Eng¬

j

Basic Atomics,

Inc.

1956 by William B. Dana
Company

CHRONICLE
Reentered

second-class matter Febru¬

as

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

ary

D£NA COMPANY, Publishers

Park Place,

New

2-9570

York 7, N. Y.
to

Subscription

9576

Rates

SEIBERT, Editor & Publisher

D.

WILLIAM

DANA

SEIBERT, President

Thursday, January

of

Union,

in

Dominion

Canada,

Other

12, 1956

issue — market
corporation news, bank

statistical
and

Worcester
Other

Chicago

city

news,

Offices:

3.

111.

135

quotation
clearings,

Bank

La

Salle

St.,

STate 2-0613);

and

per

$53.00

$62.00

per

year;
per

year.

39 BROADWAY, NEW

Note—On
rate

of

year.

Monthly,
(Foreign postage extra.)

account

of

exchange,

Record

the

—

fluctuations

In

remittances for for¬

eign subscriptions and advertisements must
be

made

In

Nev

YORK 6

WHitehall 3-3960

1-4040 & 4041

Publications

Quotation

$37.00 per year.

the

South

$55.00

8.

Teletype NY

etc.).

(Telephone

Countries,
Other

Every Thursday (general news and ad¬
vertising issue) and every Monday (com¬
records,

of

IS V. FRANKEL & CO.
INCORPORATED

Subscriptions in United States, U.
Possessions,
Territories
and Members
Pan-American

HERBERT

state
•

C.

r-

and

Reg. U. S. Patent Office

ST., NEW YORK 4, N. Y.
•

E.

■

.

Gulf Sulphur

48

COMMERCIAL

FINANCIAL

,

4

Washington and You

Sulphur

*

Mexican

The State of Trade and Industry

™S. it WlTIS to me, is Our joint

Corp.

Pan American

and

VOlved,

responsibility to the public.

Vitro

19

plete




on

r

Leaseholds, Inc.

*

diligegnce"

Schenectady

Georesearch, Inc.**
Gulf Coast

8

Einzig: "Britain's Inflationary Trend Blamed

Helicopters, Inc.

F. H. McGraw & Co.

"due

Spencer Trask & Co*

•

Doman

48

REctor

Nashville

Teletype: NY 1-4643

Corpus Christi Refining Co.
19
t

25

•

Broadway, New York 4

Cover

Bank and Insurance Stocks

WILLIAM B.

Boston

42

Regular Features
As We See It

From Washington Ahead of

stock offering. I believe in the
future of our country, the longterm growth of our industry, and

us

J.F.Reilly&Co.,Inc.

47

...

deep, personal

I hope, of course, that ownership in
the
company
will
be
shared by great numbers of peopie as a result of this proposed

of

(Boxed)

DIgby 4-4970

rllLrLllllLU OIUUlXO

•

SIBONEY

17

President Eisenhower's State of the Union Message.

Copyright

BROAD

STERLING OIL

Cited

by W. Randolph Burgess (Letter to Editor)

PDCCCDDCn QTflPKQ

Albany

of Former Treasurers

Business Man's Bookshelf

have

TELEPHONE IIAnover 2-4300

FIELDS
14

.w^ produce this

~~

For many years we

Members

Business

Harold L. Bache Predicts Increased Stock Ownership.16

The

specialized in

on

/ Outlook

Published Twice Weekly

25

*

ad-

BenceTmeeting "'undjrwritet. handlin's growth, but also Of the risks inHotel Commodore New York

♦

Conference Board Economists

business,

hesitancy

'

*

•

HYCON MFG.
O'Leary

know how

wishful ahead,

in

indulging

talk

request

There

have

i

in

of

1956.

mitting right

financial

The

the

lot

on

11

The Credit Restraint Policy—James J.

'-

automobile industry. Of a second
thing I, personally, am reasonably
modern sure: 1956 will not be as good a
efficient year as 1955.

design,

and

of

a

the part of various in¬
I
think
we-have
a

on

dividuals.

ment, filed

amount

size

have been

Ford, II

Henry

e-

Commission

the

been

truck market

and

prelimi¬
registra-

pany

has

4-6551

•

automotive
you

STREET, NEW YORK

-'' Executive Flight—Ira U. Cobleigh

subject to ' "iji

stakes

bids!

our

Obsolete Securities Dept.
99

miracle

not

is

to

cash

Telephone: WHitehall

industrial

Company

and

business

same

•

4

5

^

men

Our

men.

to

which

tions

r.;in

We at Ford Motor

j'/colleagues and
I

belief

LISTEN

Business—Harry A. Bullis_

Textile Industry's Economic Outlook
Highly Attractive

miracles.
uracies.//r

_

v-As I under-

naive

our

3

_

Looking Ahead to 1965—Solomon Fabricant

-

a

;

today

at

'

glad to have this oppor- received, reading press accounts
tunity to take paf-t in the. prelude and listening to the^ opinions of
to an event of no small importance
/ informed persons, I am concerned
in the 53-.year history of Ford .about the evidence in some areas
of

;

in

LOOK

Cover

,V —Henry Ford II

am

Motor Com¬

STOP

Silbert

Don't Expect Fast and Fabulous Market Gains in Ford Stocks!

v

•

H.

|

Cover

No Reason for Federal Control of Consumer Credit

on

llCHTEnSTEIIl

"
Page

AND COMPANY

Company's President, before prospective stock offering, warns
/
against indulging in wishful thinking about chances for fast> ^
business, it is subject to

'

H

Branch Bankng and Banking Facilities—John
Ryan

President, Ford Motor Company

I

'

Articles and News

By HENRY FORD II*

gains^ Emphasizes, while management has "fair fix"

3

-

York

funds.

Direct

PHILADELPHIA

Wires to

DENVER

SALT LAKE CITY

The Commercial and Financial
Chronicle...

all

13%

billion

buying

consumer

power

than last

more

lars for

will not increase proportionately due

reduced

increasing as fast as last year and a
of indebtedness. Says gap between predicted

rate

metals,

rubber and

and slower rising purchasing power can
be closed by reducing taxes at the proper time. Mr. Bullis
discerns unanimity of agreement on the goal of prosperity by
both major political parties and sincere concern for the farm
problem. Points out that American business has never been
better at any time and that it can best be sustained not by
inflation but by bold, sound economic stimulants.
future

American

the

of

So here

the Kremlin

economy depends first of all upon
certain facts, but it is also related
to one's point of view.

Over

t h

of

great

ness

long
to

a s

of

American

business

FACT, NEVER BET¬

OF

THESE

hardly

minded

come

to

American

rate

1956

elect—perhaps I
we

pass.
econ-.

United

are

in

of

the j rate

all

coun¬

of $400

the annual

war

$100 billion.

other

words,

should

States.

re¬

doing

are

in

19401

say

will

a

that

sible to sustain this pace? Can

of

keep

Can

prosperity. For
be called genuine
prosperity. And for both it is sin¬
may

cere concern

of

the

for the sick member
moment in our economic

family—the American farmer. But
agreed they are that the United
States

our

we race our

shall

and

must

have

pros¬

perity.
*An

address

Moines

Moines,

by

Mr.

Chamber

Iowa,

Jan.

This

5,

Bullis

of

before

United

sounding "yes".

not

reply just that
acted

But

he

on

did

way.

In

fact,

affirmative
form of commitments for
goods

1956.

the cost of

equipment,
creation
duction

of

These

in

expenditures

other

new

words
of

means

which

our

flow

services

plants and

new

by

we

can

the

neither

an

offer

The

to

sell

'

we

''

'

""1

.:

,

known

,

all the end products
out. Fortunately, our
Government's fiscal condition is
sound

with; the budget: presently
a cash surplus. There¬
fore our basic problem is to keep

indicating

of

our

vested, such
equipment,

gigantic

business

ma¬

has

in¬

houses and their

as

;

other

and

products

destined

dollars and which

need.

What

then

;

nor a

national

2,800,000

and

non-agricultural payrolls—which doesn't count selfand unpaid workers in
family businesses—
rose seasonally
by 500,000 to hit an unprecedented 51,200,000. y In a separate report, the United States
Department of Labor's
Bureau of Employment
Security said initial claims for unem¬
ployment compensation benefits rose by
48,200 to 328,000 in the

jobless

pay

by 75,900 to

rose

1,684,047.

1,144,500.

The year-ago

total

was

adds

for
the

During November, 1954, other consumer goods credit out¬
rose only $74,000,000.
Outstanding auto paper, however,
dropped $44,000,000 in November, 1954.

pro¬

Auto

instalment buying had

been the main force behind the
credit outstanding during
November's increase in auto credit was the smallest
since
January, 1955.
It said outstanding consumer instalment
credit rose

$5,000,000,000 increase in instalment
1955.

000

labor supply of

Continued

per

month

an estimated
$27,200,000,000 at the end of
This compared with a
$62,000,000 increase during the

of

1954,

when

outstanding instalment credit

of the month.

In

standing credit increased $141,000,000.

totaled

November, 1953, out¬

November's report also indicated the
sharp upsurge in instal¬
buying, which had been a prime source of concern among
Federal officials, was tapering off.
The $284,000,000 rise

so

ment

any Iowa
more

$284,000,-

during November to

$22,000,000,000 at the end

production

about. 3%

many

during the month

was only slightly larger than the
$264,000,000
during October. These increases were about half the
; average monthly increase since the early spring of 1955.
; v
Though the increases in consumer instalment credit and auto

increase

on

of

page

33

•

Credit outstanding were
relatively small compared with previous
months during 1955, both totals established new
highs. November
was the tenth
straight month consumer instalment credit reached
a

by the Prospectus.

record

level

standing hit

a

and
new

the

eleventh

straight month auto credit

out¬

high.

NEW ISSUE

January 12, 1956

In

the automotive industry the year 1955 saw
7.942,983 new
produced in the United States, "Ward's Automotive Reports"
stated on Friday last.
It marked the most prolific year in auto¬
cars

222,000 Shares

E.

mobile history, even though falling short of the
sought-for 8,00U^000 goal by 57,017 units, or a scant 0.7%.
The 1955 total, "Ward's"
said, outranked 1950's

J. Korvette, Inc.

car-making
of 6,672,193 units—previously the best in
history—by 1,270units, or 19.0%. It bettered 1954 by 5,509,550 units or 44.2%
and 1953 by 6,134,534 units or 29.5%.

snree

790

Common Stock
Par Value $1
per

Combined
mark

share

Copies of the Prospectus
or

such other deulers

or

may

as

may

1955,

car

the

1,245,584 trucks to

and

truck production also established a new
statistical. agency reported
The addition of
the automobile count provided a grand total

mobile

harvest.

The

country's

The

securities in such State.

grand

on

Loeb, Rhoades

&

Co.

1956.

Last

companies prepared
pace

of

«

#■

f

-

*

r *

i

■




-***#**#*•» y* *.t 11 f * 0

„

-f

t; *

i' *.

jtTft

m:

i'

a

'

£ "is. SLS

1

JT.X..C

»

a

a

*'«

to

preceding

With American Motors

u'\.
X.

the

increase

two

output

holiday

over

weeks,

the

slowed-

boosts

were

minimal.

against 2,809

scheduling 4,132
«

car-

however, may well have its
week, for instance, even though most United

down

as

#

;

too, enjoyed its greatest auto¬
yield ran to 377,665 units in
previous peak of 366.535 units.

9,641,402 units.
staggering 1955 showing,

States

.

the

car

truck total of

State only from the undersigned

any

lawfully offer these

effect

Carl M.

was

1955, or 3.0% more than 1953's
Thus United States and Canadian manufacturers
combined to build
8,320.648 cars in 1955, stated "Ward's," as well as a

be obtained in

brokers

in

of 9,188,567 vehicles. The
8,016,633 units compiled in 1950
former top turnout but it was
surpassed in 1955 by 14.6%.
Across the border, Canada,

Price $10 per Share

*

a

*

«

m

*

»

at

>

Consumer instalment buying continued
upward last Novem¬
time in 1955 credit auto purchases weren't
the main cause, the "Federal Reserve Board"
reported.
The board noted outstanding auto credit rose
only $.77,000,000 while the "dominant element" in
November's increase was a
$140,000,000 rise in instalment credit extended on other consumer
goods such as refrigerators, ranges and appliances.

about 800,000 a year is an addition
per cent to our

~

....

like

our

;

on

the month.

solicitation of an offer to buy
any

these securities. The
offer is made only

at

ber, but for the first

con¬

is

Employes

more highly skilled labor
supply,
greater efficiency in farming and
coal mining, plus increase in
pop¬
ulation, are the forces behind this

of

stood

non-farm

.

•

ductivity grows at the rate of al¬
most 4% a year. Better techniques
in management and production, a

farm,

an

standing

We know that pur

one

to

week ended Dec. 31.
Some 32 states reported the
upturn, which
the government attributed to
post-Christmas cutbacks in a variety '
,of industries,
widespread plant shutdowns for inventory
taking >
i and further
seasonal layoffs in the;
textile^ apparel, food and con- 5
i struction businesses.
First claims a year ago totaled
399,099. • '
>
In the week ended Dec.
24, the total of workers drawing state '

list includes food,
clothing, to¬
bacco, oil products, rubber tires,
consumer

600,000

.

appliances,
radios,
TVs, and automobiles—the things
that make American life good—
moving into consumer hands. The

sumers

dropped

employed, domestic

of

which

over

the

turn

in

little

a

employment in December, the government
added, continued to rise, reaching a record 58,300,000. "This
topped
previous record high reached last
August, officials said.

r.*.,

major con¬
keep a balance between
the expanding growth in
output
and our ability to finance all the
producing machines and the con¬

strikingly observable on

all

total

In
December, 1954, unemployment
employment at 60,700,000.

-

go

is to

output

unemployment total of
as in November.

same

and December, but this
in line with the usual trend for the
time of the year, the joint
report noted.

At this moment, our

chine

The

Actually, the number of jobholders
64,200,000 between November

-

the

month.

about the

was

The Job Ahead

sumers

>*'■*;

employment, according to the United States Depart¬
and Labor, was
2,500,000 higher than "ever

that

was

Total

potential. Improved technology,

of

higher standard of living for
Americans.

:

do

car

estimated

way.

:'l

*

.

of

pro¬

push

goods and
contribute
to
a

that

where

'

received from the ship¬
and construction industries.
were

Commerce

growth. Also

the

capital
during
the

expenditures

cover

he

in

an

year

December

billion Gross.'Na¬

Product,

"«

-

that

high rate.

is

have practically

we

$400

a

be

a

orders for steel

new

building, freight

TO

think that

job ahead?

re-

has

'

States businessman

has already expressed himself
question. His answer is a

1956.

announcement is

more

this

the

Commerce, Des

we are

possibly
get
speed and mileage?

higher
Des

engine as
still

—and

one

For the party in power it
may be
called continued

we

economic f o o t p e d a 1
pressed down to the floorboards?

pass

The

outs, it

logically leads to

basic question. "How much fur¬
can this thing go? Is it
pos¬

ther

platform that both
political parties are agreed upon.
They are in favor of prosperity.

the

this

will

we

President

We

Now all

upon the entire membership of the
House of Representatives. A
good
third of the U. S. Senate will risk
its political future.

There is

INVEST
I

shall

from here?

they

we

it

Now, since

cern

this

four- times-what we-did

political

is out,

re-elect—a

may

the

AND

GOOD.

that

so

National

production

services

and

was

In

ern

Consider

Gross

our

Just before the

Harry A. Bullis

scene,
we
this
is
a

that

Before

year.

ordering at

Increased

joint actions of mil¬
lions of human beings who invent,
create, invest, manage and gov¬

tional

We?

appreciated.

that

me

try—is nearing

the

business

WORK

MAKE IT

UNITED

omy as a gasoline engine, its tank,
To be sure, we must allow for
just emptied, but spinning madly
the lessened purchasing* power of
on in a last burst of
speed before; the dollar
compared with the oreit chugs to a halt.
war years.
But after this allow¬
Here in America, as we
survey ance, the rate is fabulous.

the

-

an

attained

billion per year.

that it will

view

prosperity—and

on

Product—the

confident
ever,

They

state

goods

are

as

£

future

2,400,000

with

His

successors

There were considerable cuts in
output in the automotive, »•
construction and lumber industries. For
the same period, inventories of copper, lead and zinc showed a
moderate decline. Despite "
recent reductions in their production, automotive
producers continued their steel

*

result of the

is

live

it.

street—the

Business Failures

•

businessman,
including the

the

matter

the

on

TO

Industry

Index

Auto Production

.

<

looks good. It looks good because
THE NATION IS DETERMINED

Just how good business is today,

enough

see

man

hang-dogging under

IIow Good Are

Stalin

didn't

and for that

STATES.

inevi¬

table.

through

Trade

A noticeable decline
occurred in total industrial
production
in the period ended on
Wednesday of last week, with total output
falling somewhat under the level of the like week a
year ago.

for

i-

u s

synthetic fabrics.

of

TORY

panic
is

and

plant facilities.

before

shat¬

tering* b

down

Retail

Commodity Price Index
Food Price

looking at the economic pic¬
ture through the American brand
of eyeglass, we can say that be¬
ginning with the politicians, right

TER AT ANY TIME IN THE HIS¬

Ameri¬

here

Carloadings

State of Trade

Bell

ments

GOOD—IN

e

the

depres¬
sion. They be¬
a

the

Production

Electric Output

important point to remember.
A heavy volume economy doesn't
just happen—it is created as the

the

can

lieve

Steel

parties agreed

in

be

year

billion

its domes, wishing the worst; the
political drums beating out the
Presidential
election
year;
all

Moscow, they
hope that 1953
will

$29.4

: So

have the picture—

we

the

major expenditures are
by iron and steel, light
autos, chemicals, paper,

planned

faster rising output

The

that

new

Other

workers' earnings not

to

than

by

System
alone will spend two billion dol¬

the volume of

year,

$33.4

more

Consider

Prominent business leader contends that while output in 1956
will be $10-$15

capital expenditures
billion. This is

is

industry in capital
goods during the past year. We
all know that this supplies jobs.

Board, General Mills, Inc.

of the

1956

invested

By HARRY A. BULLIS*
Chairman

planned

for

The Outlook lor Business

Thursday, January 12, 1956

*

1

f■

cars

cars

programming 3,500 cars the past week
Studebaker-Packard

in the prior week and

against 3,918
'

cars

'

the week before, United

"Continued

on

page

34

\

Volume 183

Number 5498

The Commercial and Financial Chronicle

...

(161)

Our experience leads

Looking Ahead to 1965

Observations.

Dr. Fabricant

the

MARKET ILLUSIONS
final

let

year,

farewell

the

to

take stock of

us

the illusions that

in

that

of

more

rife

ran

old

them

the stock

(as

bought

split

a

genesis,

The

turn

in

the

is

Illusory

When

look

10

every

thinking

speculate about the future,
questions come quickly

and

ahead

about

when

we

to

Will the

minds.

our

Fear

ap¬

inflation?

Illusion

A. Wilfred

One

VV

u-

May

this

vidual
and

that. Actually:—indi¬

or

stocks,

always, did this

as

that;

thing
the

there being
the market.

as

Not

did

even

different

market

.

show

the

By

>

in
the

averages

of

uniformity in their

Another

substantial

(a

railroads

the

advanced

by

20

only

11.95%, and the 15 utilities by
14.98%.

a

Midst

overall

the

in

reflected

and Poor's

Standard
Industrial

market,

of

25%

in

Index of 420

issues
their agonized hold¬

Stocks,

surely gave
ers

.bull

rise

a

occasion

many

ask

to

"What

bull

Of the
New

1,016 issues listed

on

the

Stock

York

Exchange, 277
declined and 12 ended unchanged.

The

20%

advance

the Dow

registered

by

Jones Average of 30 in¬
issues
was
attained
by

dustrial

only 315 stocks, this representing
less

one-third

than

of

listed

the

issues.*

commcn

Following

are some

of the sub¬

stantial mid-Bull Market declines
suffered

by individual issues:

Amerada
rise

in

19%

down

(vs.

N. J.); Ad¬
miral 23%; American Motors 27%;

City Investing 23%; Dome Mines
22%; Goebel 36%; Pfeiffer Brew¬

Phoenix Hosiery 24%;
Servel
28%;
Alexander
Smith
28% (vs. 46% rise in Mohawk);
Standard
Brands 28%; Spear &
Co. 44%; Studebaker Packer 26%

ing 42%;

(vs. 42% rise in General Motors);
Schenley 20% (vs. a 6% rise in

Walker);
a

Baking 35%

Ward

(vs.

31% rise in Continental Baking);

Westinghcuse 25% (vs.
in General Electric).
Declines
various

23% rise

registered

were

industry

a

groups,

as

by

fol¬

lows:**
Fertilizer 14%; air conditioning
11%;,.. dairy
9%;
biscuit
7%;
brewery 7%; movie 7%; gold 6%;
soap 6%; variety chains 1%.
Divergence
likewise extended
to thetmarket action of individual

issues

within

industries.

ample, e we find

that

in

For

material i nine

issues
advanced,
^ight declined; in instalment
financing four rose and six fell;
and

in radio-TV six advanced and ten

declined;

among

issues rose, ten

the textiles eight

falling, etc.

revival in

getting

a

1955's bull market

cited

additions

un¬

as

the

to

of

What

volume

o

the

including

dollar

a

next

10

of

the

meeting

a

outlook
for
per capita.

I

attended

re- ;

commented
frequency: with
which

the

someone

people

from -one

move

the

I

on
our

place

restlessness

indicate.

to

this
it

think

the American

interest

nomic

in

people reflects their
improving their- eco¬

position; Our people; have

revealed

this

Joint

the

interest

in

many

in

10

If

are

Let

me

us

ing in terms of trillions of dollars
of national product and income!

other

and

here I shall

costs

home

at

and. in

by
developing
and
products and
old. Our economic
tem permits and encourages,
when
necessary
forces,

industry,

new

im¬
sys¬

fense. I know further—I

enterprise. It is the source
past
economic
progress

not

need not

reasonable

being

think it will continue

experienced men, you will
nor would you accent

obstacles

expect

categorical

what

we

all

alternative

the

us—the
*Ari

Life

various

address

..•

Dr.

New
.

•,

York
•; ■

of

City,

at the
America

Dec.
-

r

pose
you

15,

would

fore, I
more

than

give you

want to

held right now
is much of the public's—particu¬
Most

widely

larly the virgin stock buyers'—
apparent belief that the prospec¬
tive offering of Ford Motor stock
is giving them the opportunity to
get in on a ground floor—sure
speculation — as did Grandpa

This is under
an

no

offer

v

I

1965

as

its main projection

would

put

buy,

staff

itself.

You

Joint Committee
will

recall

his

$28,000

stake back in 1902.
the present Mr. Ford's
clarification

statesmanlike

Continued

on

construed as an offering of these securities for sale, or as
solicitation of an offer to buy, any of such securities.
offer is made only by means of the Prospectus.

or as a

NEW ISSUE

160,000 Shares

General Shoe

the

to

contrary and his-vigorous warn¬
ings against public expectations
of miracles.
As a matter of fact,
in

Corporation

Common Stock
(Par Value $1 Per Share)

resumption of bullish market

a

atmosphere, the public is likely to
re-adopt its obtuse habit of fast¬
ening extra bullishness onto such
kind of warning — as with its
frequent
realities

escape

to

the

from
mirage

Price $60.50 per

statistical
of great

Share

"hidden" earnings.

(There

are

good sound

reasons

fori buying the Ford stock, at a
fair; price and based on realistic

Copies of the Prospectus may

expectations of the future, not on
nostalgic hindsight.)
K

be obtained from the undersigned.

*

'

'

Smith, Barney & Co.

H. J. Jensen Joins

Chicago

Blyth & Co., Inc.

Equitable Securities Corporation

(Special to The Financial Chronicle)

CHICAGO,
has

111.—Henry J. Jen¬
joined Bache & Co., 135

South La Salle Street.
formerlv

Mr. Jensen

Manager

of

the

Goldman, Sachs & Co.
Merrill Lynch, Pierce, Fenner & Beane

municipal department of the Chi¬
cago

Co.

office of Eastman, Dillon &
and

prior

thereto

was

with

Dempsey & Co. and Blair & Co;,
Incorporated.

January 12,1956

that

projection is based on as¬
sumptions mainly concerning
their

Henry's partner Malcolmson with
This despite

couple

One of these I would take from

the report of the

•

The

a

figures.

circumstances to be
to

the

Alongside

one.

$535 billion
of Gross National
product offered by the Joint Com¬

of other

stacles, it will rise less rapidly.

•

1965.

for

a number of possibilities. If
should ask for figures, there¬

for

rapidly the more we encourage
enterprise. If, out of ignorance
or
shortsightedness, we raise ob¬

Fabricant

Association

Insurance

S-'—oosiuni,
1955.

by

expectation

when
we
speculate
about the future, candor, not to
mention caution, requires that we

However,

mittee staff

inevitable trend. It will rise more

that

possibilities

to inter¬
obstacles do

but, also, old obstacles
uprooted. We
reasonably expect produc¬
tivity to move along a rising trend.
It is not, of course, a fixed or

before

futures

New

despite the

up

reasonable

may

weigh the respective probabilities
of

it.

crop

The Joint Committee staff con¬

siders its projection of $535 billion
of
Gross
National
Product
a

wither away or are

is. to

do

to

with

that

and
such
of our
and
I

accustom

appear,

recognize that

trying

are

fere

the other

to

answers

We

things keep on going as
grand-children will have
themselves to speak¬

skills and increasing
capital, by seeking
new and better jobs and business
opportunities, by cutting human
and

edge

their tangible

proving

and

over

to

methods

that

Product
an

constantly improving their knowl¬

merit

they

not only by moving from
place to another, but also by

simply assume continuation of the
Cold
War, with something like
the present volume of resources
continuing to be diverted to de¬
—

years,

our

this

assume

the

increase

an

.

well,

questions;

Like most of

staff

on

increase of
$145 billion at present purchasing
power.
With the current year's
figure coming to about $390. bil¬
lion, this would mean $535 billion
of Gross National Product by 1965.
And/ along with, itj 11965 would—i
on this projection—see something
like $380 billion of total disposable
personal income. That is, the pur¬
chasing power of our people, less
income
taxes,
would
be more
than $100 billion above the cur-;
rent 1955 level of about $270 bil->
lion.

exclude
war.

of

National

next

ways:

immediately, however, that
meeting I am entitled to
the possibility of a hot

claim

Report

Gross

one

consideration.

serious

Committee

ing cash-flow as a proper adden¬
dum to the reported net income.
Illusion of the Month Club Item

years,

projection by the

also, the

the

growth in real income

f

will
generated?

a

be

S. Fabricant

questions.

company's oil-in-theground in the calculation of its
common stock's value; and of cit¬

was




of

worth

suggested that X stock is too high,
the comforting rebuttal is made

-

future

be

of unemployed?

device

sen

compiled by H. Hentz & Co.
*Ccnstituting average decline pointwise, calculated
by Harold Clayton of
;)r
Hemphill Ntyes & Co.

clear.

be the case with the now popular

justification-of•price-ihiovgh-comparison. If it is

*

al¬

During
bull
markets
certain
special supporting concepts cus¬
tomarily arise, which during suc¬
ceeding dog days turn out to have
been illusions.
Perhaps this wiH

stiff
was

from

far

Bache in

what I would call

*As

is

perhaps

welcome

Comparison
illusion

born

example);

depression, will the flood of

Rationalizing Through
Another

is

Buffalo

of

factors

infants

ex¬

building

is

Actually, the active baby-produc¬
ing business did not forestall bear
markets of the past—and in the

38%

Standard Oil,

—

impact of population on security

army

market?"

rise

market

though the logic of calculating an

next

Income

to

at

These

population growth

hours"

36

value

meager

as

"City

then,

Real

seemed

levels?

by

popular in 1955—after

concerned with

every

20.77%,

First,

of

better to say that the mobility of

prices

to

in
Growth

and

-present

rationali-" crucial

market

bull

the

bring population up
level of 190 million. There is,

savings

zation again

the

for

Economic

v

another

That Baby Blessing

trials

by

it had fallen

1932

distance,

into the

cently,

remain

Dr.

Whereas the Dow Jones 30 Indus¬
rose

off

head

looks'

Will

68 per cent.

,

degrees of bullishness.

respective

level.

his

serious
depressions?

to its starting

up

lifts

At

see any

such

no

segments

-

get back

he

,

upward at the
historical
r^ate? Will we

the price

see

Bureau

continue

If not illlusion, this bull

other World War to

1955 : level

is that "the bull market" in
did

;

«

-

-

might ask for spe¬
projections. It would be easy
enough to provide these.; There
is the population increase of 25
million projected by the Census

wonders

.person

above his daily routine and

income

capita

per

should

simplification. The inflationhedger of 1921 had to wait 25
years and the occurrence of an- r

Market

Some people

up? Will

real

argument at least represents over¬
"The"

Number

Cold War

heat

(or Hope)

it not be that com¬
be purchased
now, after the 2-year doubling of
the averages, as a hedge against

propriate-1; V
That

years

certain

may

stocks

mon

par¬

ticularly

that

still

rise

will

cific

progress.

to exhibit instability.

economy

—

faster.

which would

cheap.

shunned

progressive

a

the trend of

long-term

future

the nature of

families.

per

National Product

Foresees
no likelihood of a serious depression in next decade, but points
out all fluctuations are not likely to be eliminated, and it is
(4) other factors which affect economic

bear market under-priced.
Inflation

leaf for

new

as

(1)
pro¬

(3) the rate of population grov/th, and

capita;

per

as:

capita; (2) the increased

per

Z

well also be over-priced, and

a

a

over

is

and

Y

issues

fact

crucial

may

a
to

resolution

because

the Y's and Z's in the bull market

.

e-1 9 5 5

p r

ductivity

cheaper than Y and- Z.

kicking around just

are

discussed

last week) had

is

Conversely, midst a bear market
X stock, irrespective of its demon¬
strated outstanding value, is not

the

investment community. Since most
of

it

growth in real income

idleness—

our

or

capita also will con¬
tinue to rise. Population is going
up; therefore total product—Gross

questions to be considered in speculating

poses

leisure—or

ourselves

Product

to ex¬

us

that not all of this
productivity will go

in

more

for

Economic Research

regarding the future, and then discusses such matters

RIDDING (!) FAREWELL TO SOME BULL

a

into

By SOLOMON FABRICANT*

By A. WILFRED MAY

As

increase

..

Director of Research, National Bureau of

also,

pect,

5

Kidder, Peabody & Co.

Union Securities Corporation

page

30

6

(162)

The Commercial and Financial Chronicle...
Thursday, January 12, 1956

period of the most dynamic growth

Textile Industry's Economic
Outlook Highly Attractive

of

Coming to
cent

production
acles

Prominent textile official

his industry

sees

on

10%

another

in

more

Mr. Spears

economy.

rent to

very beginning that in any kind
of
forecast
there
is
always at

least

one

looked

ply
we

important factor

over¬

sim¬

—

because
don't know

what

it

is.

Something
major

of

conse-

not

quence

known is

now

bound to

come

up and

nullify
attempt to

our

unveil the ob¬

scurity of the
future.
To give you
idea of

seme

the scope of

Jackson

Spears

subject,

my

to

;

Mills

at

ran

absolute

yarns
and
fabrics will remain at

ca¬

weaving

about its

or

figures

even.

8%.

v

spindles

higher

'l

'

,

sult of the increase of

_

currently

are

capita income

per

man-hour

per

operating at about 145% of capac¬
ity (remember that "capacity" is
figured at 80-hours per week);

the

(a

as

from

world

com¬

production

relationship.

(2) What is the eventual share
In the textile market of each
class
I

of fiber.

in

a

(3)

What is likely to transpire
vyith respect to mill margins.
(4) What is the significance of
the recent merger trend.

(5)

two-shift basis—
where necessary labor was avail¬
able. When Department of Census
figures were set up, an 80-hour
week:

was

a

considered

100%

of

capacity. By 1933 about 12% of the
total

looms

were

operated

on

three-shift basis. This trend
halted by N.R.A. codes but

might

observe j

fame

that

have

we

we

the

are

"t

*

.

'■;

•

r

a

ing the next decade.

be

26.5%

pansion

of

concurrent

tion

the

for

any

meet

now

equipment

such

stricted

needs

—

unless

ted.
These

broad

of

are,

over-all

simply
They are

course,

figures.

arrest

can

the.

To summarize this demand-sup¬
seems apparent that

industry so long known
industry of vast capacity fort

as an

over-production may be standing
upon the threshold of

inability to
supply the needs of the market^-!
on the rate of importa¬
tions. Of course, substantial im-I
provement in earnings of textilecompanies could
attract
capital!
depending

into the construction of additional

plants which could change this
picture radically and quickly. Un¬
til this takes place, and until it
takes place with sufficient appear-.

men¬

of

ance

a

to

permanence

convince

investing community, it is not

likely prospect.

«

,

Civilian per capita consumption *
of textile fibers in pounds in the*

influencing the

1935-39 (prewar) period was
28.1,
up
of
2.6
of man-made
fibers and 25.5 of natural fibers.

made

,

unre¬

re¬

sumed in 1936 at the end of N.R.A.
By World War II the third shift,

we

The effect of the introduction of
these blends and increasing famil- In 1950-54 per capita consumption!
was
36.1 made up of 8.6 lbs. of
iarity on the part of mills and
man-made fibers and 27.5 of the
garment manufacturers with tech¬
natural fibers. This would
suggest *
niques for their use will certainly
increase demand. This is true in that 30% of all fibers consumed ;

permit¬

are

cents^

Of course, we
the textile

ply picture, it

blends.

sufficient pro¬
in place
to

importations

on,

figure,

the textile

textile demand will be technologi¬
cal—such as new yarns and new

economy with a
in consump¬

increase

There is not

ductive

factor

This

downward trend and perhaps re-;
our former relative position.

Technological Influence
Another

ex¬

ability.

a

was

allowance

expended

gain

the

It should be noted that this esti¬
mate of f u r t h e r requirements

that

techni ques

current

over

was

shoes;

readily ad¬
industry is
giving the consumer greater
values, and this accounts, in part,
for the declining trend. On the
other hand, it is certainly possible
that by improving
merchandising
mit

tioned earlier.

no

in 1954.

in

well-being of the individual).

would

and

9.5 cents in 1951 and 8.4

was

re¬

rise

dollar

consumer

clothing

The largest population increase in
the next decade will be in the

other

makes

U.

productivity

general

practices of the time and locality.
During the first world war the
practice developed of operating

this

to

is

try's procurement of its share of
the consumer dollar is shown
by I
S. Department of Commerce
figures. In 1929, 11.9 cents of each

capita

par

(1) What are the likely pros¬
pects of the domestic demand and

on

I

claim

one

merchants

because j
industry;

only major industry in the country
able to operate
pretty much at
capacity and still barely break

present level.

occasional Sunday
Since then 1,910,000

an

way, this means a need to
one-shift industry was determined
levels instead of the 15% I
by the needs, the laws and the increase production by 15% dur¬

petition
have on

of

merely
textile

Parenthetically,

of

Conditions of supply will obvi¬
and here it should be noted that
teen-age group which is the group
ously be determined by machinery the
all-time high in rate of opera¬ that becomes most
in place viewed
dynamically an
both quantita¬
tion was in February of 1951 "at
important user of textile products.
tively and qualitatively. Domestic
which time cotton spindle activity, Also there
must be considered the
supply will also be affected by was
152.4% of capacity. Looms are prospect of a
continuing increase
rate of imports—and I will come
currently operating at about 123 in the industrial output which will
back to this a little later.
hours per week, which is
slightly require additional i n d u s t r i a 1
Demand will be determined by more than five
days, three shifts. fabrics.
population growth, age g r o u p
Per capita .consumption of all
1965 Production
trends, increases in man-hour out¬
textile fibers in pounds from 1925
put, increases in the number of
Looking ahead to 1965 the prob¬
to 1929 was 27.3; This figure had
wage earners, expanding economy, able
increase
in
population
is
risen to 36.1 ih the 1950-54
etc.
pe¬
likely to be 25,000,000 to bring the
riod. By 1965 textile consumption
A determination of the indus¬ total
population
to
190,000,000.
ought to be 40 lbs. per person per
This is 15% over the
try's productive capacity requires
present 165,year. This is arrived at by assum¬
some historical review.
000,000, Assuming the same per
ing a potential 10% increase in
Up until the time of the first capita consumption; this would
per capita consumption.
indicate a need for about
world war, the textile
2,000,industry
If this estimate is
000,000 yards more fabric than
realizable,
was
a
one-shift
industry. The
current production. To put it an¬ production requirements for 1965
number of hours

cotton mills

the

as

cotton

would like to outline
briefly
what my remarks will
encompass:

next

in

that

of

I

supply picture during the
decade—and what effect will

merchants

are

machinery in place for the spin¬

about

newcomers.

week

we

ning

yards

war

general

Supply-Demand Conditions

per

great

this continues to be true the total

Cotton
or

cot¬

consumption
ton and synthetics (taken together
capacity if we assume a continua¬
because many looms shift back,
tion of the present rate of our
and
forth
between
and
cotton
economic growth.
Such an addi¬
man-made fibers)
have declined tional
increase
derives
chiefly
from 522,000 in
1942 to 480;0.00
from shifts in age groups and from
now.
This is also a decline of

mergers,

present competitors

we like to point with
pride to our
merchandising abilities and fre¬
quently refer to ourselves as being

existing company than
it is to buy land, put
up buildings
and install machinery. So
long as
an

tion in

Factors favorably in¬
(1) population growth; (2) ex¬
yarn and blend uses; (4) aggres¬

I would like to emphasize at the

buy

That there is much room
T<* the increase in population
for.
spinning capacity of about must'be
added an increase in the improvement in the textile indus¬
8%. Looms operating on both -cot¬

says

Mr. Spears holds there is
for textile giants but views this as no deter¬

economic need

an

possibility of application of
aggressive merchandising
techniques. In the textile industry
more

.

panding economy; (3) new
merchandising techniques, and (5) suburbanization needs.

forecasting additional

in

etc.

thrown in.
Probable
consumption
cotton system spindles have been,
require a'further word.
dismantled which means a reduc¬

sive

In

to

in 1942 when mir¬

performed to meet

pacity with

1942-type of national crisis would find insufficient
as:

modernization,

the

machinery
replacement,
The
simple

fact is that if you want to become
the owner of a mill it is less
costly

re¬

annual

obtained

ever

was

were

cloth.

capacity requiring immediate rationing.

fluencing demand cited

highest

textile

11,200,000,000

a

expanding

an

the

more

new

matter of

as a

necessities. That year we produced

the threshold of

characteristic chronic state
of over-production, providing reasonable import quotas are
obtained.
Additional 2 billion fabric yards conservatively
indicated for 1965 at present rate of per capita consumption
and

somewhat

a

period,

ton goods

Executive Vice-President, Burlington Industries, Inc.

inadequate capacity instead of

purchase of
except

.

spindles in place declined by 36%.

By JACKSON E. SPEARS*

|F

industrial plant in the history
this
country
cotton
system

of

the

apparel

trades

because

in 1965 will be man-made

con¬

as com-

«

impressive in. certain sumer appetites are whetted by pared with 11% in 1939 and ap-' '
operations,
By*
popu¬ had become an actuality for most specific areas such as the woolen new effects; and consumption rises proximately 24% at present.
lation and increased leisure
and worsted industry. Woolen with increased
hours. of the textile industry
desirability due to citing these figures, I certainly *
although
do not mean
to
(6) What about regional trends Department of Census
spindles in place have declined more - accurate
encourage
the
achievement
of
figures still
What will be the effect of
further suburbanization of

(7)

What

trend

in

will

textile

be

the

world

production

and

distribution patterns.

Obviously., it will only be
sible

to

broad

pos¬

touch

lightly upon so
subject; and statistical

a

data offered in support of conclu¬
sions must be limited.
♦An

School

an

ing

operations

80-hour week for report¬
as

a

per

cent

of

capacity. It was this increase in
equipment usage that made it pos¬
sible

for

the

textile

industry

to

meet the combined needs of
mili¬

tary and civilian consumption.
At

the

commencement

of

more

from

1,684,000 in

today.

address

by Mr.
Administration

of

Dec.

Social

8,

Spears
Center

Research,- New

New

York

19SS.

This advertisement is neither
NEW ISSUE

the

at

of

an

offer

to sell nor

solicitation of an
offer to

buy

any

of these securities,

.

Insufficient
I would
here

that

Capacity

characteristics

.a

right

wool and

an
urgent national crisis
confronted us in 1942, the textile

an

blends.

now

($5 Par Value)

industry

as

Price $13.25 per Share

Merchandising Techniques
Another factor
an

that

important effect

could

to

course,

have

see

no

difference in

the

other

could

the

former,

figures

fiber

producing

industry,

UNDERWRITERS
BROKERS

dividends,

Incorporated

Bacon, Whipple & Co.

a

borrowed

Co.

was

money

8.8%

for

all

Dean Witter

in¬

during 1954-55.

&Go.

Of five major and basic industries
"textile mill products" stood at
the foot of the ladder with a
per¬

centage

Corporation

DEALERS

DISTRIBUTORS

percent to invested capital includ¬

ing

Ladenburg,Thalmann &

but

as

..

As

return

to

the

sell

second

stocks

common

of

2.5.

Los Angeles Stock

point, textile

characteristically

at less than their stated

values.

will

Exchange

Exchange
•

Honolulu Stock
.

Son Francisco

Exchange

•

Stock|E*change
•

Americon Stork Exchange

Chicago Board of Trade

and other leading commodity
exchonges

•

_

—*—*—

•

Midwest Stock Exchange

Private leased

radiotelegraph circuit

* '

to Honolulu

.

It is obvious then that risk

tal

book

Members-

-

New York Stock

not

be

allocated

SAN FRANCISCO

capi¬

to

the

•

PORTLAND

LOS
•

ANGELES

HONOLULU

•

•

NEW

AND

>

of dynamic leadership in the man-

is made

Complete

■

y

hand, the development

INVESTMENT SERVICE

re¬

make

{hese estimates. On

;

related to other indus¬

ob¬

technological J

increase in

that the earnings after
taxes,
before preferred

dustries




u;

on demand

prepared by the National
Industrial Conference Beard show

A. G. Becker & Co.

White, Weld & Co.

jection.* Of

a

cently

Copies of the Prospectus may be obtained in any state from such
of the several Underwriters,
including the undersigned, as may lawfully offer the securities in such
state.

January 11, 1956

profitable and pleasant

improvements in the growth and

f

two, the financial mar¬
appraisal of textile machin¬
values.

As

Union Securities

more

hoeing cotton,, I

tries and

outstanding

ery

Lehman Brothers

thing

Qur position

ket's

Kidder, Peabody & Co.

silk,

a

into being.

first discovered. ;•

clothing and textiles would have
instituted immediately at the
emer-

came

harvesting of cotton

Rationing of

an

We Used to be

cotton industry. Then,
than

productive machinery will be de¬
termined by two factors.
One, re¬
turn on investment in the textile

*Of which 18,810 shares

so-called battle of fibers—because i:

or

today parallels that of the metal¬
lurgical industry when alloys were

industry no longer has the ca¬
pacity to meet the demands that

such

a

man-made fibers

face- ;~-ahd
such as

gency.
The prospect for

198,810 Common Shares*

f

either intended

significance.

v

like to point out
if we ever again

to be

Danly Machine Specialties, Inc.

are

the

,

commencement of

r

in

,

1955

°JfatnS is made only by the Prospectus.

*

performance

900,000

.

would be made of it.
a

to

,

there

were
22,564,000 cotton sys¬
spindles in place. In
1921,
thirty-four years earlier, there
were
36,000,000 cotton system
spindles in place. Thus,
during the

1940

Worstedspindles

end use. In addition, I sincerely believe we are now in
same
period have declined from .of course, there are
likely to be a multi-fiber business.
Although *
2,036,000 to 1,000,000. Woolen and,,.many new end,uses in the indus¬
cotton will continue to occupy &
worsted looms in place have trial field.'
/
•
dropped from 41,430 in*. 1940 to
dominant position,,if our ilabor
i
This development of blends in
;
26,800 today.
*
j
, J' the
textile industry is '' of t great force can be occupied at some-4.

tem

Business

City,

around-the-clock

use

of mill locations.

or

even

YORK

•

OTHER

CHICAGO
PACIFIC

•

BOSTON

COAST

•

CITIES

SEATTLE

•

Volume 183

Number 5498

The Commercial and Financial Chronicle

...

fair

sadly lacking, could also have
far-reaching effects.

now

reasonable quota

and

system

of

Margins

could

give

However
trade

desirable

freedom

!

substantial improvement
recent

by

past. Prices

demand

Since

it

mand

are

and

could

ac¬

determined

supply

out-run

it

increase

again

in

be

tential

borne

major

in

mind

as

a

textile

comparable machinery at

a

po¬

Japanese

manufacturer

Government

the

1

has

important
determining mill margins. One recently announced withdrawal of
these is increased
efficiency
through technological improve¬
in

a

not

—

regulations for accomplish-

*of

the

other

move

—

to determine the
of such needs and to adopt

Japanese

ment
'

in

duction

wage

Government

and

of

the

>

Japan to Curb Exports
The

bought
located

50,000,000 in 1954.

proper

are

our

Cotton cloth imports„from

Japan were 6,500,000 square yards
in
1952, 33,200,000 in 1953 and

the American

industry using

rate of 13.6 cents per hour.

alarm.

gardless

Indicated im-

ports for 1955 are from 120,000,000
to
140,000,000 square yards.
To
this

cloth

import must

be

items

of

sures

result ^On

desired

to

able

hand, we welcome this

by the Japanese as at least

as

all

cloth,

areas

we are

all

cotton

pres¬

of

near-capacity

industry recognizes

Japanese friends, but

our

not

willing to sacrifice the

Continued

is

cloth

price

sympathetic with the desire

to help

of the cotton cloth mar-

Practically

Such

industry already
from an inadequate
an
inadequate return
being procured under

The textile
and is

ket. "

partial solution.

on

page

of

ments.

I

dustry

generally

nearly

as

feel

that the textile

has

good

done

as

other

job

a

industries in the adoption

mechanization t

h

e c

n

in¬

not
of

new

-

i q u e s. In¬

creased mechanization is the mark

of progress of our industrial plant.
Increased efficiencies lower costs

;

Irving Trust Company

without necessarily affecting price
Another important

structures.
factor

will

is the

level.

wage

continue to

•t+.ill'i)1-:*.'Mr.'ri' ifi

Wages

increase

and

SIS.

the

work-week, if anything, is likely
to

lessen

factors

somewhat.

These

textile

will put increased
mill management and

machinery

to find

ways and
ing costs down.

STATEMENT OF CONDITION,

likely

of keep¬

means

Cash and Due from Banks

technological

Chairman

to remain

levels.

relatively

The

same

non-cellulosics
the

likely

Securities Issued

current
be said for

near

may

acetate,

and

rayon

U. S. Government Securities

improvements.
are

but

will

new

decline.

competition
could have
on

posely

threat

the

to

of

the

and

on

re¬

world

effect

of

because

the

which

uncertainties

Continental Can

86,055,337

President,

630,457,233

.

davii) l.

President, West Virginia

j. r. ma< donald
Chairman and President,

21,007,938

F.II.A.

Mortgages ....
Conventional First Mortgages

of

General Cable

Vice President and Treasurer,

1,936,883

It

have

made

it

Chairman,

Sylvania Electric Products Inc.

Customers'

Liability for
Acceptances Outstanding.

ex¬

•

25,297,562

•

roy w. moore

President,

Accrued Interest and
Other Assets

to their normal markets in South¬

markets,

16,947,737

Banking Houses

j

v

don g. mitchell

tremely difficult for them to cater
Asia—those

,

Deering, Milliken & Co., Inc.

22,944,821

export textile products. Politi¬
situations

Corporation i

minot k. milliken

Real Estate

on

Company

luke, jr.

Pulp and Paper Company

U. S. Government Insured

Japan was all but
has been rebuilt
since with modern equipment; and
is apparently being operated un¬
der aggressive management. It is
an economic essentiality for Japan
industry

destroyed..

The Flintkote

7,019,956

Mortgages:

the

Company, Inc.

i. j. harvey, jr. >

723,532,526

political

surround

*

President,

......

Other Loans

approaches to its consideration.
During the last war the textile

east

Securities

ment

I have pur¬
this topic for
apart from the main

Chairman, Bristol-Myers Company

Insured

or

reserved

thesis

Honorary Chairman

thomas c. focarty

by U. S. Government
or its
Agencies
Loans Secured by U. S. Govern¬

mill margins.

treatment

cal

.

431,567,978

it
conditions of sunnly

—

harry e. ward

9,845,796

\.

•

.

Loans:

Competition

On several occasions I have

23,150,178
3,150,000

.

.

.

Loans Guaranteed

ferred

President

henry p. bristol

ment.

to

by U. S. GovernAgencies

ment

Other Securities

hand, the supply and
demand relationship is such that
even
if net costs rise, I believe
mill margins will show improve¬

World

395,422,004

.

Under¬

Slock in Federal Reserve Bank

On

other

and

or

of the Board

richard ii. west

written
■:'

the

506,916,880

$

.

.

william n. enstrom

Securities:

which will not altogether be offset
Prices of natural fibers

DIRECTORS

ASSETS

then, mill costs are
show
some
increases

to

DECEMBER 31, 1955

manufacturers

In summary

by

NEW YORK

are

which

pressures on

Canada

5,893,001

..••••••

Dry Ginger Ale, Inc.

michael a. morrissey

by the

I olal Assets

where the greatest need for
textile products exists; where peo¬
ple in fact do not have enough

........

$1,733,100,505

New York,

N. Y.

way,

The

textile industry
than fill any foreseeable

Japanese

more

can

Dividend

Expenses

.

11,987,684

.

Portfolio

capacity is freely available to the
American
consumer.
Japan has
most

modern

and

1,606,668,873

Total Liabilities

President,
Reiss

reductions

went into effect

on

which

CAPITAL

Sept. 10 under

for

Geneva

Trade

have served

invitation

an

Cooperation

to

the

at

their

efforts

to

larger

share

of

American

a

market.

-

It

is

flood.

of

the

can

The

of

Japanese importations

.

explosive since the

the

year

men

that

in

tex¬

middle

thoughtful

of

that

,

Former Chairman of the Board
and

Chief Executive Officer,

United States Rubber Company

•

.

.

126,431,632

President, National Dairy
Products

Total Liabilities and

Capital Accounts

....

$1,733,100,505

U. Sv Government Securities
monies

and
,

'

for other

secure deposits of public
required by law amounted to

pledged to

purposes

$55,356,370.

New

York, N. Y.

francis l. whitmarsh
President,
Francis H.

foresee the demoralization of

The
will

only preventive action
have

effectiveness




is

a

MEMBER

FEDERAL

DEPOSIT

INSURANCE

Corporation

william j. wardall

textile

the American industry unless pre¬
ventive action is taken at an early
date.

Capital Accounts

increase

tiles and textile products has been
so

i

stem the Japa¬

rate

50,000,000
55,000,000
21,431,632

-

Manufacturing Corporation

herbert e. smith

e. e. stewart

Total

obtain

unlikely that tariff

barriers alone
nese

Undivided Profits

primarily as
Japanese to

redouble

ACCOUNTS

Capital Stock (5,000,000 shares—$10 par)
Surplus:. . :

agreements reached by the Organ¬
ization

Company

raymond h. reiss

ficient types.

Latest- tariff

-

United States Tobacco

6,423,877

Other Liabilities

ef¬

most

Company

Whitney peterson
President,

27,589,533

.

Pennsylvania Co.

President, Otis Elevator

j.

380,000 looms—predominantly the
latest

New York &

leroy a. petersen

2,500,000

Payable Jan. 3, 1956

Acceptances: Less Amount in

this

in

President,

$1,558,167,779

Taxes and Other

between supply and demand
country if the Japanese

gap

peter s. paine

LIABILITIES

Deposits

clothing.

CORPORATION

the

production.

quickly to

pressures spread

pro¬

that

an

circumstances

ginghams and velveteens; but this increase in cotton
cloth supply and the concomitant
price

obvious

intolerable and unbear¬

—

print

is

prices.

are

a

such

market

City.
Re¬
percentage relations

it

mestic

as

blouses, etc. which when added to
imports, brings the total to

areas

one

York

of substantial and appar¬
ently unlimited offerings at low
prices serve to drive down do¬

cloth

centrated in certain

in

7

presence

added

such

sold

New

(163)

imports to total domestic

figure in excess of 200,000,000 suffering
yards of cloth per year. Current return
industry, it is the responsibility of import increases have been con- which is

'
*

to

United

extent

depressant.

Two other factors

•

a

products

tem, forestall imposition of quotas
on Japanese imports by our government.
If quotas are necessary
for
the
protection of American

textile

terms with

an

mill
margins.
Here
question
of
imports

the

must

bring about

course,

this

a situation to
long in which the Ameri¬
industry, paying an
average wage of $1.35 per hour,
is
forced
to
compete
on
even
can

would follow that prices are likely
to enjoy a fairly firm trend. This

would, of

that

country wil permit

de¬

supply

believe

continue

factors.
that

cannot

and

ment of its-own export quota sys¬

be,

may

tant- I

the

over

possible

seems

an

cloth

States.- .This step was
obviously taken in recognition of
growing pressures here for a reversal
of ; currenf policies.
The
Japanese
Government hopes to
allay fears here and by establish¬

of

maintenance of
curate estimate of what mill American standards of
living and
I margins are likely to be during the our dominant position in the world
|j days to come. It seems to me that through the high standard of liv¬
| they are bound to show rather ing which we have is so impor¬
you

cotton

the

.

Mill
I

The facts lend credence to

licensing arrangements for export

established by governmental reg¬
ulation.
t
■

I wish

II

Leggett & Company

1

■-

A

34

8

(164)

The Commercial and Financial
Chronicle...

Delta

Air

Lines—Study

copies 75 cents each)
Atlanta 1, Ga.

Dealer-Broker Investment

Dome Exploration

(single
—

V..;

(Western)

Company, Limited,

44

It is

understood

that

mentioned

firms

the

will

General

Minerals

able is

mentary
atomic

as

—

Montana Dakota Utilities Co.
120

—

Memorandum

Also

Closed End Funds—Survey with particular reference to
Adams
Express Co., General American Investors
Co., Lehman Corp.,
National Shares Corp., Niagara Share
Corp. and U. S. For¬
eign Securities Corp.—Thomson &
McKinnon, 11 Wall

Mueller

Memorandum

—

Brass

Co.

Memorandum

—

J. Barth &

—

Co.,

Co., 404 Mont¬

Exchange—The San Francisco
cisco, calif.
New

Booklet

Exchange, San Fran¬

&

Co., 120

Ill

—

Broadway, New York 5, N. Y.

Harris, Upham & Co., 120

&

& Co.,

Standard

Oil

J.

sions

&

Co.,

Bank

Rates,

and

of

&

Co.,

—$1.00

per

15 Broad

U.

S.

—

Memorandum

—

Bulletin

—

Street, New York 4, N. Y.

ated

120

on

Vick Chemical Co.
—

Hare's

Limited, 19

-

Over-tlie-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

ness

used

yield

in the National
Quotation Bureau
and market performance over

National

Quotation

Bureau,

York 4, N. Y.

Public Utility Common
Saxton &

Stocks

46

Averages, both
a

as

to

13-year period —
Front Street, New

in

become

Hayden, 'Miller &

Commerce

Building,

a

Co.,

of

Mr.

Products

Basic

Atomics,

F.

&

Co.,

Buffalo-Eclipse—Analysis—Van Alstyne,
Street, New York 5, N. Y.

Diana

30, 1956

Traders

Club

dinner

at

of

*20

Also available is

an

analysis of

the

(Chicago, 111.)

of

was
formerly President
Olderman, Asbeck & Co. and

prior

thereto was a partner
McDonald & Company.

in

With Allen Inv* Co.

Inc—Analysis—Harris,

Upham & Co.,

BOULDER, Colo. — John W.
Kane has been' added to the staff
of

Allen

1334

Investment

Pearl Street.

Company,

-

new

,

department

with

and

relations

public

its

co-managers across the
In

move is "in keep¬
ing with greatly increased invest¬

ment
interest
and
participation
throughout
our
35
office
city
territories, calling for a moderni¬
zation
and
expansion
of
these
prime
Harris,
Upham \ service

Philadelphia annual dinnei
at the Bellevue-Stratford Hotel,
luncheon

and

March 9, 1956
York

reception

noon.

Association

(New York City)

Security
30th

Biltmore

annual

Hotel.

facilities

dinner
;

securities

DEPENDABLE

into

an

effective'

unit

designed to provide enlightened,
timely, and continuing informa¬
tion concerning all phases of the

Dealers

,

country.

making the announcement,
Harris pointed out that the

organizational

of

a

accelerated

ings for separate groups of Harris,
Upham's 47 office managers and

(Philadelphia, Pa.)

to be held at 12

The

is being launched this
by the first of eight, threeday sales and management meet¬

Investment Traders Association

at the

Boucher

program

Mr.

New

P.

week

(Boston, Mass.)
Security Traders Asso¬

March 2, 1956

with

H.

New York.

way,

ciation annual winter dinner at
the Parker House.

Olderman

New

Stock

advertising

Drako

(Special to The Financial Chronicle)

Broadway, NeW/York 5, N. Y. Also available
are
analyses
Match Company and
McKesson & Bobbins, In-




members

The

Chicago

Olderman

Noel & Co., 52 Wall

Stores Corporation.

of Diamond

coast

divisions will be located in
Harris,
Upham's main office at 120 Broad¬

Boston
J.

t ment

Exchange.

(Chicago, 111.)

Feb. 10, 1956

Bymart-Tintair, Inc.—Report—General
Investing Corporation.
80 Wall
Street, New York 5, N. Y.
Cluett, Peabody & Co.,

nve s

of the

seatic

Russell

Co.,

t i onwide

to

Meeting at the Drake Hotel.

Corporation, Ltd.—Analysis—New York HanCorporation, 120 Broadway, New York 5, N. Y. Also
available is 1955 Year End Prices
of Foreign
External & In¬
ternal
Securities.
A
memorandum
on
Brown &
Sharpe

a

and

National Security Traders Asso¬
ciation National Committe«

42

Comparison of New York

part¬

as

offices coast

Hotel.

Bowater Paper

Co. and Quarterly
banks and trust
companies.

Stark
coun¬

brokerage

Jan. 30, 1956

Inc.,

M.

firm with 35

(Baltimore, Md.)
Baltimore Security Traders A«-

Bond

York 5, N. Y.

Reilly

York 4, N. Y.

Manufacturing

&

a m

Field

jan. 27, i956

Jan.

Ltd.—Analysis—Dominion Securities

Inc.—Circular—J.

Broadway, New

h

n a

Investment

i

annual

Corporation, 40 Exchange Place, New

Eliot

activities, under the direction

York

Broadway, New York 6, N. Y.
Oil & Gas

In

*

Incorporated—Analysis—Ira Haupt & Co., Ill

Bailey Selburn

EVENTS

sociation 21st annual Mid-Win¬
ter
Dinner
at
the
Southern
Hotel.

—

*

the

senior partner
of Harris, Up-

Union

members

of

charge
sales, was
announced by
Henry
U.

partner

the Midwest Stock
Exchange.

with

Harris,

J.

Comparative figures — G. A.
Co., Inc., 70 Pine Street, New York
5, N. Y.
*

Air

Inc.,

has

sale

of

Hayden, Miller Go.

Olderman

the

in

ner

COMING

CLEVELAND, Ohio—Russell

in

of Jerome H. P. Boucher

Hayden, Stone & Co., 25 Broad

R. J. Olderman Partner

In

dealers

pro¬
pro¬

than 800

more

A
complete
realignment and
major expansion of its new busi¬

Analysis — H. Hentz & Co., 60
Beaver Street, New York
4, N. Y. Also available is a memo¬

randum

syndicated

a

merchandising

Harris, Upham Expands
Sales, Merchandising

—

Outlook For Security Prices —
Bulletin
Rector Street, New York
6, N Y.

the

sel.

Hemphill, Noyes & Co.,

—

St., New York 5, N. Y.

Vitamin

and

Company, public relations

Co., 45

Inc.—Analysis—Ernst & Company,

of

one

joining
the
Wiesen¬
berger firm, Mr. Reif was associ¬

copy.

Transamerica Corp.

—
Analysis — A. C. Allyn & Co., 122
South La Salle
Street, Chicago 3, 111. Also available is an
analysis of Pacific Power & Light Company.

Forecast

&

now

twice-

Invest¬

Before

Limited—Analysis—Canadian Corporation Infor¬
mation Service, 44-50 Pearl
Street, Toronto 1, Ont., Canada

analysis of Business Results and

Machine Tool Industry

and

Stevens

the

mutual funds.

|

Broadway, New York 5, N. Y.

Outlook, and analyses of Mitsui Chemical Industry
Co.,
Ltd., Sumitomo Chemical Co., Ltd., Tokyo Gas
Co., Ltd.,
and Tokyo Electric Power
Co., Ltd.

1956 Review

P.

Service,"

security

Post

10

Tiara Mines

of

—

closed-end in¬

gram which assists

California—Bulletin—Dean Witter
Montgomery Street, San Francisco 6, Calif.

Anaiysis — Nomura
Securities Co., Ltd., 61
Broadway, New York 6, N. Y. Also
In the same issue "Nomura's
Investors Beacon" are discus¬

and

Report,"

motional

—

Investment Opportunities in Japan—Circular—Yamaichi
Secu¬
rities Co., Ltd., Ill
Broadway, New York 7, N. Y.

funds

most widely distributed
and in¬
fluential investment
advisory let¬
ters; and the "Wiesenberger

Socony Mobil Oil Company
Analysis — Newburger, Loeb &
Co., 15 Broad Street, New York 5, N. Y.

"Gleanings"—Francis
Co., 1 Wall Street, New York 5, N. Y.

Japanese-U. S. Taxation Conventions

Broadway, New York 6, N. Y.

Reif

"Wiesenberger

Dealer

Cement Co.—New views—Lerner
Office Square, Boston 9, Mass.

—

Leo

on

companies;

ment

Co., 115 Broad¬

America—Memorandum—Talmage

Riverside

Facts and Figures in Review
Comparison of research yard¬
sticks 1955 vs. 1.954—in current issue of

annual

vestment

Co.—Memorandum—Rogers & Tracy, 120
Street, Chicago 3, III.

Radio Corporation of

the

monthly

Distillers—Analysis—J. R. Williston
New York 5, N. Y.

South La Salle

San Francisco Stock

on

Stock

page

-

''bible"

Pubco Development

Dividend Paying Stocks: 1955—Traded

400

mutual

McDonnell

National
way,

firm's

Companies"—
long regarded

Broadway, New York 5, N. Y.

Street,

promoting

the

in

as
—

is

services.
These include

Street, San Francisco 4, Calif.

gomery

over

various publi¬
cations
and

Broadway, New York 5, N. Y.

Monterey Oil Co.

as

"Investment

Walston &

—

admitted

sponsible

for

"Weekly
1-chome,

Nihonbashi, Chuo-ku, Tokyo, Japan.
issue is an analysis of Mitsui Warehouse.

same

years,

the

Kabuto-cho,
the

for

five

Glore, Forgan & Co., 40

—

been

been with the

firm

r e

Analysis

Warehouse—Analysis in current issue of
Stock Bulletin"—The Nikko Securities
Co., Ltd., 5,

Toronto 1, Ont., Canada.

I. du Pont &

National Electric Welding Machines.

Clark—Bulletin—May & Gannon, Inc., 140

Company—Bulletin—Reynolds & Co., 120 Broad¬

Canada—Bulletin—Gardiner, Annett Limited, 330 Bay Street,

—

on

Reif has

partner in the New York Stock

Exchange firm of Arthur Wiesen¬
berger & Co., 61 Broadway, New
York City. Mr.
Reif, who has

—

Mitsubishi

publication, pro¬
motion and distribution of
books—Vantage Press, Inc., 120
West 31st Street, New
York, N. Y.

Drug Industry

Co., Inc., 15

New York 5, N. Y.

way,

describes

New York 5, N. Y.

Julius Maier

—

Wall Street, New York 5, N. Y.

Earnings—Bulletin—Laird, Bissell & Meeds, 120 Broad¬
way, New York 5, N, Y.
CN

Leo

Street, Boston 10, Mass.

Eli Lilly and

of Sept.

Bank

Manuscripts—Booklet

Circular

—

Libby, McNeill & Libby

80, 1955—Atomic Development Securities Co., Inc., 1033 Thir¬
tieth Street, N. W., Washington
7, D. C.

Book

bulletin

a

Federal

Confusion—Quarterly report containing com¬
thorium, and uranium oversupply—

also available—both contain portfolio

Wiesenberger & Go.

Limited—Analysis—R. A. Daly &
Street, West, Toronto 1, Ont.,

Corporation

Landers, Frary &

fusion,

on

mao

Leo Reif Partner in

-V;' ::V.

Analysis — Aetna Securities
Corporation, 111 Broadway, New York 6, N. Y. Also avail¬

Energy Review—New booklet—Harris, Upham & Co.,
120 Broadway, New York 5, N. Y.
Fusion

additional

11 Marietta Street,

Exchange Place, Jersey City 2, N. J.

be

Atomic

Atomic

request;

a

Empire Petroleum Co.

pleased
send interested parties the following literature:

to

on

King

Canada.

Recommendations & Literature

copy

Courts & Co.,

Thursday, January 12, 1956

business."

c ;

c.-

MARKETS; Paul Cropper Wllh
r»u»
c<

Ball, Burge & Kraus
(Special to The Financial Chronicle)

CLEVELAND, Ohio — Paul F.
Cropper, Paul F. Cropper, Jr. and
Robert

Montgomery

Wildermuth

have become associated with Ball,
Kraus, Union Commerce
members
York

and

Midwest

of

the

New

Stock

Ex¬

changes.

DEHPSEY-TEGELER & CO.

All were, formerly with
Livingston, Williams' & Co., of
which

Mr.

President.

Cropper

was

a

Vice-

Number 5498

Volume 183

The Commercial and Financial Chronicle

...

(165)

,

9
tr*

60 cents

Executive

Flight

third
the

Enterprise Economist

private,
The

has

or

post

been

over

aeronautical

war

era

with prophecy
(and piloting) your
airplane would some day be¬

that

replete

owning

own

almost

come
as

common

driving
to

Well,

now,

the

prophecy

is

up

wings for T-33 jet

and T2 V-l single jet trainers
Lockheed; and parts and com¬
ponents on the F-101 airplane for
McDonnell Aircraft Corp.

common

paying

25%

for

three

( 1)
private planes
reasons:

still

Cobleigh

h

a v e

a

Cadillac

level

($4,500-$5,500
place trainer type and
$6,000 to $8,000 for a four place
job); (2) piloting, especially with
for

two

a

instruments,

erating an
congestion

in low

or

requires lots

visibility,

skill than

more

op¬

Oldsmobile; and (3)
big airports
and

at

dearth df little

ones

present

some

terminal difficulties. So, while the

day

may

has

a

when

come

hangar,

here

has been

hopping, increasing

by about 30%

Military
been

a

a

year

has,

demand

of

factor,

major

sportsmen

since

1950.

course,

flying

by

and

prospectors, im¬
portant, and 7,000 companies now
operate about 22,100 planes. These
business uses range all over the
lot; inspection of pipe, rail or
lines, saving of travel time
city to city and

power

of executives from

coast to

coast; and the opening up
sales and service coverage of new
markets.

broader

and

executive

plane

With

the

in

the

company

shed, travel without five minutes'
delay, or slow hauls to or from
airports, is available 'round the
clock, and trips can be made in
one-third

one-fourth

to

surface

transport time, depending mainly
the power

of

craft.

Single
engines can cruise above 115 mph.
and twins past 200, with ranges
on

your

from 500 to around

Three

1,400 miles.

companies

have

specialized in the type of aircraft
we've

been

discussing — Beech,
Piper. We'll take them
in that order, which happens
be one of descending magni¬

Cessna and
up

to

tude.

There

Beech Aircraft Corporation man¬

wide

a

of

assortment

planes in three plants

near

in

and

29

states

(U.

S.)

foreign countries. While
military sales for some
60% of production (1955), com¬
mercial sales are moving briskly
on

forward, advancing from $20,829,079 in 1954 (fiscal year ends Sept.
30) to $27,245,940 for 1955, a new

high.
We'll describe commercial lines
first.

The three major

Beechcraft
twin

Super

engined

job

models

are

18, a $100,000
seating up to
,

nine; the six place Twin-Bonanza
that will set you back $70,000; and
the Bonanza, a single-engined all
metal four place plane, retailing
at $19,000. Then there's an excit¬
ing newcomer with a versatile
future as an executive, military or
liaison

plane.

jet

It's called the MS
a four place twin

It's

760 "Paris."

(pressurized) that can go 410

mph. Built originally by MoraneSaulnier,
Beechcraft

a

French

now

American

North

has

view

can

the

future

Cessna

with

company,

option

on

manufacturing

Aircraft

Cessna
which

Aircraft

we

number of

Beech.

and

points in

Both

Wichita

area;

has

upon,

to

Air

Beechcraft

Force

and the




basis

Concluding
three

a

personal

these
or

still costs twice

of

in

mon

much

sales

in

as

it's a bit surprising
flying boat or am¬
in the lot.
(There's a
company," Colonial Air¬

Ford; and

gined executive

for

other

leaders

has

Blair

Allan

South

joined
&

Bache

A. M.

New

staff

the

He

with

Albert

McGann

was

previously
;

Stock

and :Julius

way

36

Wall

WORLD WIDE

Balogh

;,:V

A

BANKING

the

com¬

(and

'CHARTERE D

1 799

^

THE

subcontractor

civilian

Its

Chase Manhattan

single
engine
models—the four place Model 170,
costing $8,300, and the four place
Model

which

180,

out

comes

at

BANK

$15,000. There's also the five place
twin engine Model 310 for

$50,000;
helicopter models under¬

and two
way.

Military production includes the
trainer for the Navy; plane
assemblies for Boeing's B47 and

STATEMENT OF CONDITION, DECEMBER 31, 1935

OE2

B52

Lockheed's

bombers;
T2

and

trainers and

V-l

lic's

F-84

T-37

Air

jet and

fighters.

may

T-33

Repub¬
a

twin

the most im¬

prove

portant military sales item for the
future.

Cessna also turns out

hydraulic

for farm equipment and

systems

automotive

at

are

all time

an

dividend on the

high and the $1

is less than

a

third of net.

plane
production, plus considerable re¬

The

expansion

liance

volume

.

.

$1,943,005,885

.

•

Obligations

C.

.

1,230,522,456

•

.

State, Municipal and Other Securities

486,375,921

liable performer.

Loans

141,424,492
3,510,002,858

.

Accrued Interest Receivable

17,371,591

Customers'Acceptance Liability.

.......

.

Banking Houses.

.

.

.

.

20,302,191

Dividends have
interruption

there was a

dividend

in

CE

1944.

$7,509,247,604

100%
com¬

Amer¬
27..

mon

is currently quoted on

ican

Stock Exchange at

58,980,360

•

Other Assets

without

1941 and

101,261,850

,

of

military output, suggest that Cess¬
na can continue to be a quite re¬
paid

U. S. Government

.

civilian

of

sustained

on

Cash and Due from Banks

Mortgages

use.

sales

Cessna

RESOURCES

Cessna

The

trainer is

Force

Piper Aircraft Co.

LIABILITIES

Deposits

$6,789,358,288

........

Before World War

II, Piper was
the acknowledged leader in low
priced

private

Competi¬

planes.

Foreign Funds Borrowed

.

.

Reserve for Taxes

.

.

.

.

.

Other Liabilities.

.

.

3,524,458

.

.

25,029,538

tion from the two above cited en¬

terprises has been vigorous, but in

price area, Piper still
has
pretty clear sailing.
Twothirds of Piper's business is civil¬
ian. If you want a two seater, the
Tandem Super Cub is yours for
as little as $4,195. There's the TriPacer
four
place model below
the

and the deluxe twin en¬
gined four place all metal Apache
that will stand you around $35,000.
$8,000

Military versions of the foregoing
models are also produced.
Except
for

*

49,938,774

lowest

.

.

11,961,923

.

General Reserve for Securities

7,584,545

.

Capital Funds:
$150,000,000

Capital Stock
(12,000,000 Shares—$12.50 Par)

Surplus

.

.

Undivided Profits

-

.

•

.
.

300,000,000

.

•

...

.

526,433,552

76,433,552

(either Conti¬
Lycoming) the entire

or

107,378,449

4,5 83,474

Portfolio

engines

the

nental

Acceptances Outstanding
Less: In

$7^09^247^604

planes are turned out in the com¬

pany's plant at Lock Haven, Pa.
Piper importantly lacked the
buttressing influence of large mil¬
itary orders,

the

sult,

United States Government and.other securities
to secure

crued

an

and

are

carried

at

public and trust deposits and for other purposes as

post war. As a re¬
1946-50 recorded
stopk ac¬

$407,945,073

required

or

were

pledged

permitted by law.

years

Member Federal Deposit

deficits and the prefered
arrearage

that

was

until 1952.

Insurance Corporation

not

Since then,

presently at the rate of

94

*

OFFICES

IN

GREATER NEW YORK —

18

Street,

Exchange,

a

two

-

on

will admit Edward B. Con¬

nership.

Securities Co. of South Bend, Ind.

Co.,

planes.

companies.

are

f

City, members of the

York

Feb. 1,

Street.

&

York

New

135

Company,

Salle

La

major manufacturer
and military planes,

important

an

■

a

private

and

■

.•

Admit Two Partners

,

a

—Cessna has 731,109 shares); and
both turn out single and twin en¬

of

■

number of shares

same

Cessna is

'

,

the

about

Ex¬

Municipal

agement of Robert L. Parish.

both have military

ratio; both have only
stock
capitalization

nearly the

as

Stock
a

;

CHICAGO, 111.:— John
Schumacher

not

Francisco

Bond Department under the man¬

Happy

•

days, and you can also lease
one... The cheapest,
how¬

there's

San

changes, have opened

(Special to The Financial Chronicle)

.

rent

ever,

interest.

Calif.—
Fay, 221 Montgomery
Street, members of the New York
and

"executive

Joins Allan Blair

buy
instalments

on

some

FRANCISCO,

&

Bache&Co, to

our swift flight over
companies, it is of

plane

of

today's

landing!

;

.

.

flight"

of

an

with

common

located

are

|Civilian

same

touch

now

things have been going much bet¬
ter for Piper.
Dividends on the
common
were
resumed in 1954,

deliveries of the

the

found

are

Corp.

cleared up

trainer

on

have

you

Opens

Municipal Departm'l
SAN

Hooker

investor,
attracted by the dividends, values
and
growth potentials in these
companies, or a budding aeronaut
about to solo, we trust you may

Corporation,

sales for 1955 which
totalled $49,720,556 were derived
Military

34

price.

smaller

serenity.

rights.

from

Whether

Hooker & Fay

Wich¬

32

relying

a

a

considerable

ita, Kans.; and sells them through
distributors

mine,

or

phibian

and

stock

Aircraft Corp.

rage

craft

been

ufactures

is

was

since
Beech

cents

Piper Aircraft Corporation ap¬
well managed, low cost
producer of a popular line of
planes, and it has come the closest
to bringing a plane into your gar-

a

craft,

common

rather

45

pears as a

highly re¬
spected management, Beech Air¬

neered

home

every

it's not

yet;
but, withal, the small plane busi¬

ness

which

$1.20,

net.

dividend last August.
$63 million backlog, a sat¬
isfactory balance sheet, well engi¬

pretty lofty
price
tag,
starting at the

'

of

a

about

The

by

note to observe that you can

and

about

stock

fillment,

family.

held

24

With

ful¬

Piper

is

common

these

25%

of

the

listed N.Y.S.E. currently quoted at

considerably

U.

749,289 shares of BCX
(sole
capitalization)

are

short

Ira

train¬

ers,

There

of

counter.

for

as

your

own car.

Navy,

Corp.,
which
is
reported
ready to turn out a specially de¬
signed amphibian model costing
$16,000, called the Skimmer.) Hel¬
icopters appear to cost too much
to compete in this field. "

cumulative convertible preference
stock sells
around
12
over-the-

models and makers of small
executive type, planes for business or military use.

piece gliding briefly

craft

yield

(Amer¬
ican Stock Exchange). About one-

By IRA U. COBLEIGH

A

share providing a

a

of 5% with the stock at 12

OVERSEAS

to

part¬

The Commercial and Financial Chronicle.
10

Thursday, January 12, 1956

..

(166)

LEEDY*

By IIALDON A.

of Technology, Chicago,

Institute

After commenting on

has made the
highest stand¬
mankind. Points ouut the worker has

living known to

ideas

you

trolling,

a

that

.

.

ideas per¬

.

to

continue

will

and

destiny of the

lions

I

world.

Dr. Haldoii A.

of

around

known

tion

you—including the well
such as the auto¬

States

things,

rate.

Britain's

The

recording, electron¬

reason

the

is
the

most

world

growth

the

why

we

are

His

worker.

scale

en¬

ing

has

power

his

a

Armour

of

During its first
staff of only three
research volume of $40,000.

and

a

a

Today, ARF has a staff of more
than 1,100 and a research volume

approximately $11 million.

Of

trade

170

number,

century

ing known to mankind.

only 25 years ago—all
while
materially
reducing

tackled

working hours.

agencies.

during the year.

It

is

be¬

sometimes difficult to

lieve that it has been only

in the

The

Jias

last 50 years that technology

once

power
can

what it
this
his

well
un¬

*An

address

by

Dr.

Leedy before the

Club, Rockford,

For example,

111.

I would like to
about a few of these, as
some of the outstanding

as

all

recent

the

none

technological

has

received

be

of work.

cut

of

machines,

of

an

offer to buy

any

circumstances

offer to sell or as a solicitation
of these securities. The offering is made only by the Offering Circular.

afraid it would rob

their jobs.

of

new

But

the

better.

'

by

eliminated

job

every

ones

new

many

reasons. First, because lower
prices made possible by automa¬

cipal

result

tion

fcr

demand

increased

in

Second, a id even
important, new products and
processes
continually are being
products.

more

as

resu.t of research

a

and envelopment.

Should

Control

Government

■

.*

'

.

'

*

:

-

■

V

•

<

t.

would

advice

recent

e

follow

to

P.

Walter

of

other

commit¬

be

suicide

economic

ting

leaders

labor

Reuther

and

who

urging the imposition of

are

"cushion"

to

ability

of

effects

the

The

of our

success

very

auto¬

system is based on the

in¬

through

expand

to

creased man-hour output.
of these cries

hear

increased

controls,
what

remainded

I

always

happened

in

is

Here

succumbed

country that
pleas for

a

to

the

controls

indirect

and

mechanization

result

was

on

efforts.
in

slowdown

a

primary reason, in my opin¬

output per
one-third
that of our country—even though
England
began
using
machines
long before we did.

ion,

England's

why

Company

y

Common Stock

has been accompanied by a

i

Company is in the business of distributing fuel oil to homes in Essex and Union Counties,
•
*y, within one of the most densely populated areas of the Eastern United States,
and is the exclusive independent 'wholesale distributor
of AMOCO gasoline
and motor oil in Essex County, New Jersey.

Aeiv Je:

contract

a

volume distributor of fuel oil in the above described (treaf has signed

to sell

its

net assets to

Federal Oil

a

Company in January 1956.

In

in

steady
jobs.

of

work

only

energy

automation,
more

workers

concerned if their

utilize every
technological improvement to
maintain their competitive posi¬
do

employers

39
WHiteball 3-0066




tion.

Those

not

few

workers

who

temporarily
by mechanization would lose their
jobs anyway if the companies fall
would

behind

be

displaced

the parade

in

of progress.

of automation
has been the development of elec¬
Another

Broadway, New York 6, N. Y,

tronic

TWX NY 1-4777

to

do these tr.ings has enor¬

can

potentialities.

addition

In

increasing the speed of opera¬

tions, electronic equipment can be
expected to cut operating costs,
improve efficiency, and remove
the routine from office work.
j
Far-reaching developments also
in the field of
In
recent
years
ja
whole array of new metals has
come into prominence.
One of the
taking

are

place

metallurgy.

most

significant is titanium; others

zirconium, vanadium, molyb¬

denum, and niobium.
called the

Titanium—often

it

cause

new

metal—is

wonder

important be¬
be used as a light¬

can

substitute for steel and
replacement for other metals

weight
as

a

where
ance

heat

resist¬

corrosion

and

is vital.

Foundation

Research

ArmGur

recently developed a high-strength
in

which

military

now

weapons

is being
and on

Tr.ere is every reason
that this alloy — and

believe

find

others—v/ill

widespread

ap¬

plication in industry witnin a few

This is particularly true in
transportation
field, where

years.

the

titanium's lighter weight
mit greater pay

The

biggest

creased

commercial

ium

its

is

100

to

high

Titanium

tion.

times
are

that

better

may

cut

only

will per¬

loads.
obstacle

costs from 15

much

as

titan¬

produc¬

of

cost

now

in¬

to
of

use

steel.

as

predictions, however,
production methods

twice

the

difference to
much as stainless

price

as

steel within five years.

commercial

Some

users

already

finding it economically justi¬
fiable to utilize titanium. Douglas
are

Aircraft

instance,
of titanium
from 250 to 750 pounds for engine
mountings and fire walls in the
giant DC-7. It is a distinct possi¬
bility that in the near future the
bodies
of
high-speed
airplanes
Company,

for

has stepped up its use

will be made of the wonder metal.

.Tne

also

ruture

certain

non-metallic
most

looks

bright for

developments in the

new

field.

interesting

is

the

of

One

the develop¬

not because the diamond is

should be

S. D. Fuller & Co,

It

was

million.

toward

Copies of the Offering Circular may be obtained from the underwriter
only in States in which the Offering Circular may legally be distributed.

people working the same
produce the same results.
is obvious that any machine
to

ment of artificial diamonds.

Instead cf condemning the trend

Price $3.00 Per Share

take 150

17% of the
You may recall reading in the
supplied
mechanically, there were 17 mil¬ early part of last year that Gen¬
lion jobs in the United States. In eral Electric scientists had found
1954, machines did 95% of the la¬ a way to manufacture diamonds.
bor and employment soared to 62 The*- development
is
significant
when

1880,

total

%

number

the

in

increase

Economy Sendee, Inc.,

rise

mechanization in the United States

(Par Value $1.00 Per Share)
The

show that the

Statistics

or

1,200 cost reports
Manually, it would

process

hours.

There

man-hcur is only about

Federal Oil

12

legislative and economic controls

industry's

i-

in

cards,
store

on

paper,

on

magnetic tape.

computer enables Monsan¬

to

to

the

that

believe

States

United

is the
fi

The

them

punch

them
on

airplanes.

Automation?

sincerely

machine

a

long division prob¬
give the answers in

can

titanium alley

England's economic progress. This

•

It

used

I

second, such

screen,

are

This is true for two prin¬

created.

has

99,900 Shares

a

are

For

The*

«

some

cause

problems for management.
experience has shown that
net result always is for the

direct

•

will

temporary dislocations and create

telephone

2,030 pages.

of four ways-.-flash them on

any

doubt that the spread

no

automation

England.

January 11, 1956

lems.

mous

were

of

4,000 five-digit numbers
get the answer to 160 equally

John Kay, developed the
flying shuttle, a mechanical de¬
vice
for
weaving cloth.
Kay's
machine was destroyed by work¬
who

com¬

reels

its

metropolitan

a

one

that

ers

the

add

ginning cf tne Industrial Revolu¬
in
England,* a
Lancaster

an

NEW ISSUE

In
can

tion

weaver,

of

each

of about

time

am

to be construed as

book

—over

Whenever I

no

of

many

as

has

machine

On

fill

to

to

know, is nothing new. In 1738
200 years age—at the be¬

you

for
7 his announcement is wider

ticians.

saying in effect-—that soon we'll
all

com¬

magnetic tape, the computer can
"remember"
enough information

them

economic

Of

per¬

a

ma¬

for

name

puting ability of 25,000 mathema¬

are

tories.

advances,

The

ters.

print

developments from other labora¬

he must work only

di¬

Some workers
fearful of such machines h-

mation.

his counterpart in other countries.
Rotary

variety of problems were

by the Foundation's staff

tell you

the

of

best be

A wide

derstood through comparison with

de¬

was

purchasing

American worker

emerged from infancy to maturity.
Technology, which

twice

hour.

an

processing

puter—at its St. Louis headquar¬

formed by 75 men.

and

associations, and the other

for government

100

formerly

work

the

rects

in¬

at the control board

man

342

concerns

this

for industrial

were

joying the highest standard of liv¬

and

One

The

field.

data

another

—

performs 540 separate to
to
turn
out engine complicated

operations

and development on 512

projects.

pay

to five times that of a

ago,

stallation

introduced

Armour
conducted

year

Foundation

research

been

fiscal

last

its

Research

this

purchas¬

was

that the

argue

football

a

macmnts,

it had

year

of

size

Research

most 20 years ago.

of

climbing

increased

as

laboratory
direct result of

The Foundation was formed al¬

out¬

of

has

progress

They

expansion of automatic machinery
will throw millions out of faork.

of

Foundation.

Chief

beneficiary

offices.

There is

expansion. The in¬
creasing reliance on such agencies
can be shown by the phenomenal

In

technological

why the United States
powerful nation in

and

chief

The

the increased mechaniza¬
plants and busi¬

to

chine

installed

recently

high-speed

people who ob¬

some

are

tion of industrial

them

technological

Beneficiary

today that technology is the prin¬

cipal

the

Worker Is

ject

Research

Armour

evolved

has

Italy's are only 19%.

ic computers, and nuclear reactors.
I think most economists agree

United

the

in

The outside research

acle drugs; and

like magnetic

only

place

Foundation

put figures are 38% of ours, whil^

mobile, the television set, the mir¬
the lesser known,

this

that

note

is interesting to
development has

It

Technology.

The

of the United

Great

Research

Armour

as

States.

example,

equal -to 72%

organiza¬

industrial

such

taken

than any

more

influsnce all

of its

evidences

see

am

research and

on

Foundation of Illinois Institute of

How

Canada, which
other country ap¬
plies American methods, has a
man-hour manufacturing produc¬
For

certain, are
aware of the impact of technology
loday in our country.
You can
I

you,

emphasis

in¬

development is the growth of in¬

effectively American business and

technology in the
would be appropriate.
All

tions

management have ap¬
research, but plied the results of research and
first
I
think development is indicated by this
a few com¬
country's wide margin of leader¬
ments on the ship in man-hour output—the key
growth
of to a higher standard of living and
United States a strong defense.

Leedy

example,
There

Fear

the

of

indication

Another

industrial

technological

been

Technology and Employment

years.

more

development.

than
the same 25

during

billion

$300

dependent

and

also

from $69 billion to more

rose

creased

research

of

results

the

approach, largely because of the
complexity of the work.
The basis of all technology is

the

of

is reflected in
nation's annual income, which

working. The emphasis has moved

discuss

has

interest

positive and negative.

blocks at the rate of

importance of research and

The

development

from individual effort to the team

I would like

some

Even

dollars.

in

important than the figures has
been the change in the manner of

referring to
"technology,"
that J e k y 11
and
Hyde of
the laboratory.
to

of

billions

am

spent on

development in 1920.

has blossomed into a large
operation employing mil¬
of
workers and
involving

scale

$41/2

than

more

opment

garage,

the

control,

ahead
billion will

research and devel¬
this country. This is
quite an increase from the $29
million
devoted to reseach and

be

pendent entirely upon the inven¬
tive
genius
of
the
individual
working alone in his basement or

subject which is con¬

both

revolu¬

are

tionizing
office
procedures
throughout the country.
The
Monsanto Chemical Company, for

They point to such automatic
machinery installations as the one
used
by
Ford Motor Company
which stretches over an area the

/

It is estimated in the year

job eliminated by machines, many new ones are created.
Holds legislative and economic controls, to "cushion" effects
of automation, would mean economic suicide.

taining to

The

factory.

today

Computers

"automa¬

than

so-called pushbutton

tne

—

ment.

every

My appearance here is designed

tion"

why industry and the govern¬
ment are spending an increasing
amount on research and develop¬

Holds,
though spread of automation may cause temporary dislocations
of worker and business, the net result is for the better, and for

to give

attention

greater

ness

is

of technological progress.

been the chief beneficiary

Russian.
is obvious that tech¬

nology has become an integral
part of the American economy.
And it is equally obvious that this

the United

States, Dr. Leedy ascribes to it the force which
nation the most powerful in the world, with the
ard of

of

It certainly

Illinois

the growth of technology in

dozen

a

eggs,

average

Research Foundation

Director, Armour
Illinois

buy

to

compared with almost
two hours for the French worker
and more than three hours for the
fresh

Challenge oi Technology

The

hour

half

a

aspect

computers

"electronic
forms

in

—

brain"—

seconds

the so-called
which

what

per¬

formerly

required hours and days manually.

stone,

hope

but
of

because
more and

monds for industrial
As ycu

and

they

are

2V2

tons

are

the

known to man,

used widely in tools

that cut, saw, or

materials.

gem

use.

know, diamonds

hardest substance

a

it offers the
cheaper dia¬

polish other hard
only

Unfortunately,
of

diamonds

are

mined

annually, mostly in Brazil and
the Belgian Congo.
Of this
amount, tne United States imports
about

90%

each year at a cost

of

$50 million.
To

produce

the

Contiued

artificial
on

*

page

dia-

18

Volume 183

Number 5498

...

The Commercial and Financial Chronicle

(167)

construction

Employment
Opportunities

must

revolutionary
new

boom.

Almost

developments

materials

will

insure

of

f

o

products,

new

perhaps
gadgets.-

the

faster

By ROGER W. BABSON

Sales Experts Will

the

than

other

any

It

industry,

will

be

the

and

men

Be in Demand

women

In

about

employment

Mr.

goals,

Babson suggests consideration be

brought

expanding

industries

advertising

,

-

selling;

(2)

saving machinery; (3)
struction ;

(4).5

in

the

(1)

use

new con¬

air-conditioners,

television,

have

pansion.

to

finance

There

insatiable

all

will

demand

this

also

should plan

for

now

last fall will have

us

an

almost

unbelievable

and

K.

with Coburn &

now

Driscoll

be

Francisco

Feb.

on

Mark O'Donnell to

Middlebrook,

Joins A. G. Becker & Co.

is

Ropert A. Beres, formerly with

and

Ira Haupt &
the

Co., is

public

now

associated

now

utility

fice

(Special to The Financial Chronicle)

paragraphs above. Seek
in which you will be

job

happiest

for

and

which

you

are

of

A.

G.

corporated,

Becker

60

&

Co.

BRIDGEPORT, Conn. —George
G. Harman is with G. H. Walker

In¬

Broadway.

&

Co., 118 Bank Street.

to v,ynk |v

ac¬

cordingly.
The

dif¬

ference
tween

lege

be¬

THE DETROIT BANK

col¬

a

graduate

who gets promoted

on

and

who

W.

one

job, is

the

Babson

climber

to be

a

later.

who

what

appears

be sorry

-

'

Walker L. Cisler

RESOURCES

President

career

planner,
finds
out

other

The Detroit Edison Co.

hand,
where he is going. The first step
in career planning is an appraisal
of one's interests, abilities, personality, and value goals. There

United States Government Obligations

•is little

'

Corporate

and

Loans

Discounts

happiness if one
does not like the job he is doing.
A fellow is just butting his head
success or

against the wall if he tries to

in

com¬

job for which he
neither the aptitude nor the
sonality.
pete

desire

to

mankind,

serve

has

a

The

research
success

will

make

per¬

usually

Cash

Due

and

State

determine

The successful

and

.

-

.

.

$168,446,331

,

320,679,677

.

.

74,647,054

.

.

w

.

.

.

.

Other Securities

.

.

.

Charles H. Hewitt

Bank Properties

.

Equipment

and

260,752,290

113,976,261

.

Federal Reserve Bank Stock

Chairman of the Board

$146,776,029

.

.

Joseph M. Dodge

5,066,015

A-

Real Estate Loans

Accrued Interest

and

.

.

Executive Vice-President

847,500

.

5,221,688

....

Customers Liability
Other Assets

on

'.

*.

Prepaid Expense
Letters
.

.

of

.

.

Total.!;.

.

...

.

3,410,738

.

133,996

.

113,451

.

$839,318,740

.

Credit

...

.

.

Chairman of the Board
Allied Products

Corp.

James McMillan
President and Treasurer

job which gives him
Yet, while these steps

Seldom,

do

I

not

go

find,

Boyet-Campbell Co.

far

job

do

future

growth

dustries.

H. Gray Muzzy

LIABILITIES

hunters include in their search the

probable

.

a

^happiness.
.'are essential, they

Enough.

,'

.

Municipal Securities

and

'person is one who develops his
jassets and does work for which he
-is fitted, at

Banks

from

Ralph Hubbart

money,

lose oneself in

or

failure.

or

•

The

now may

The careful

the

on

DIRECTORS

•

looks

takes

good job

December 31, 1955

that

successful

ahead.
student

of Condition

just gets

a

Roger

Statement

a

job,

Chairman of the Board

in¬

of

'

Federal- Mog u I- Bower

Demand Deposits:

Bearings, Inc.

A
5

Look

at

By 1960,

proach

Our
our

population will

U. S. Government

ap¬

......

11,695,736

......

.

22,131,554

Raymond T. Perring

180 million. Approxi¬
68 million will be em¬

mately

$411,211,263

Individuals, Corporations and Others

Economy in 1960

Other Public Funds

ployed. Our Gross National Prod¬
will

uct

also

have

climbed

a

shorter work week and

productive work day,
should
and

receive in

a

our

people

profits about $365 billion

year
I

by 1960.
predict

per

spending

consumer

•will expand from our 1946 annual

of

amount

$300

$150

billion,

billion

while

to

about

government

expenditures will stabilize around
the

$75

billion
for

billion

those

mark.

great

opens

engaged

Savings Deposits

.

.

Total Deposits

.

.

*

«

......

.

.

•

•

♦

...

.

.

,

This

Unearned Interest

Accrued Expenses
Liability

on

.

v

,

and

.

.

.

Taxes

Capital Stock

.

..

.

.

.

.

.

.

.

$792,754,813

$

........

3,278,760
.*

.

133,996

.

.

.

General Reserves

.

.

.

.

.

.

.

.

.

.

.

1,913,852

.

.

Senior Partner

& Stone

10,619,331

•

.

.

.

.

.

•

Cleveland Thurber

Miller, Canfield, Paddock

20,000,000

Undivided Profits

Chairman of the Board

Detroit Harvester Co.

8,250,000

Surplus

Harry L. Pierson

2,367,988

.

.

.

...

Letters of Credit

347,716,260

#

more

interest,

wages,

Presiden t

$445,038,553

from

1946 postwar figure of $209 bil—
lion to perhaps $480 billion. With
a

'

$300

$ 40,783,183

Herbert B. Trix
President

opportunities
in advertising

Total.

.

.

.

..

.

$839,318,740

W. M. Chace Co.

sand

selling new products. These
-figures, of course, assume that the
-cold
and

war

they

^political

b-

not

assume

can

become

also

climate

business
al¬

will

a

within

operate

United States Government Securities in the foregoing statement

with

a par

value

"hot";

favorable

which

easily.

of

$26,520,000

are

pledged to

secure

public and other deposits where required by

C. David Widman
Director
The

law, including deposits of the State of Michigan amounting to $5,388,354.

Murray Corporation

of America

Growth Opportunities in 1960

Since
farm

labor

and

costs,

both

on

the

in

industry, are rising,
industries that manufacture labor¬
-saving devices such as materialshandling equipment, conveyors,
.farm machinery, construction ma¬
chinery, and office machines will
show good growth in the years to
We need a lot of new

Come.
new

roads,

hospitals,

and

new

schools;




MAIN

i

department in the New York of¬

the

Intermountain Secu¬

With G. H. Walker

trading

to my first

with

1960,

plan

partnership in

rities, Inc., 1714 South Broadway.

four

to

Ex¬

admit

DENVER, Colo.—John J. Rupp

instead, that
they look
years

will

(Special to The Financial Chronicle)

again refer

.i to major in what looks good now.
This may be a mistake. I suggest,

ahead

Stock

With Intermountain Sees.
•

tendency

a

1,

the firm.

are

an

with

array

San

changes,

Incorporated, 100 Trumbull Street.

1960!

me

Alan

FRANCISCO, Calif. — J.
Co., 404 Montgomery

&

Street, members of the New York
and

ex¬

.

In conclusion, let

A

Admit M. 0'Donnefl
SAN

HARTFORD, Conn.—Roderic R.
Allman

for
doctors,
teachers, and
College freshmen

preachers.

J. Barth & Go. to

(Special to The Financial Chronicle)

school

nurses,

by

With Coburn Middlebrook

;

Young people who entered col-

*lege

will

dish¬

materials; C washers, electric heaters, electric
(5) electrical-electronic devices, ) blankets, clothes dryers, etc. En¬
and (6) human motivation.
gineers will be turning loose on
new

per¬

interested in surveying, re¬
searching, analyzing, and motivat¬
ing human I wants. And someone

of

market
for
electronics
applica¬
tions, and for appliances such as

labor-

merchandising to

those

tremendous in¬

a

electricity,
with output increasing 60%-70%
by 1960. There will be marked
growth in the great unsaturated

our

as:

chemicals.

crease

Lists such

economy.

opportunity

,

by

on

plastics, petrodrugs, and farm

There will be

given to jobs with future growth
prospects

fibers,

misled

Barth

suade you and me to raise our
standards of living. There will be
excellent
job
opportunities
for

i

chemicals,

be

in

engaged

sales

synthetic

counseling college freshman

Don't

This may be the best opportunity
in 1960!
'
'

responsibility of

spurred by continuous research in

and

fitted.

salary offers. But—if you will be
happy selling, then enter this ac¬
tivity that cuts across all lines.

.

growth of light metals and high¬
speed alloys. The chemical indus¬
try could grow four or five times

-

best

materials,
undreamed
of

new

yet

as

11

OFFICE

GRISWOLD

•

42

Offices

MEMBER

OUR

OF

FEDERAL

SECOND

AT

STATE

•

DETROIT,

Throughout the City
DEPOSIT

INSURANCE

CENTURY

CORPORATION

OF

SERVICE

MICHIGAN

12

The Commercial and Financial Chronicle

(168)

fered

The Credit Restraint

Polity

Life

tion
to

exchange

either

of life companies reviews monetary credit
developments of the last two years, and the actions

a

and fiscal

by the Federal Reserve to curb excessive economic
"exuberance." Holds the credit control authorities deserve

courageous manner in which
policy of credit restraint in the face of
mounting pressures to revert to easier credit. Says this policy
is realistic and suggests firm if not increasing interest rates

resolute and

Aiv

funds

rapidly, run¬
ning far ahead
the

supply
savings. As
production
reached

it

flow

turn

ca¬

ments.

ap¬

the

By

was

of

operating

under

ordinate dem

a

n

d

credit.

f

o

Dr. James J.

Fearful

that

activity

sustained

and

O'Leary

the

could

that

toward

be

not

Allan

speculative

On

extended

.

Jan.

early

of

New

Federal Reserve
is

now

from
the

What

in

a

the recent
System is

treading a narrow p^th
between providing enough credit
for the real needs of an expand¬

doing

in

the

4,

period

recovery

recession.

con¬

in

Bank

"The ' economy

strong

following an
of rising stock

ing

is

too

increase

unusually active trading,
increasing use of credit
finance margin accounts, the
an

without

economy

and

manv

reserves

providing

which

would

inflationary pressures."

this

In

almost

new

By CARLISLE BARGERON

se¬

Treasury

Canal

With

3's.

climate, / the

rates

few

r

bonds

strong dealer

group

Treasury

to

with

Member

increasing

the

Reserve

pelled

mission

re¬

and
'

until
com¬

were

to

later

weeks

lew

of

Governors

Early

in

Commission

Democrats,

nominee.

Taft's

had

who

This

fortunes.

nomination

desire

no

to

to

back

came

it.

do

barged

into

the

the

was

He

turning

seemed

point
the

have

to

Carlisle Bargeron
up
and
at first was not
annoyed when the Democrat delegation, claim¬
ing to be Republicans, showed up at the Chicago Republican

sewed

convention

>

demanding to be seated.

They held rallies and parades trumpeting the "Texas steal,"
and pro-Eisenhower editors picked it up, It was a
pretty serious
charge to make against a man like Talt. But it worked to the

May

the Federal Re¬
slightly. In an
attempt to lift some of the pres¬
sure on bank reserves and to help
eased

had

'--Thus the Texas oil people set out to carry
the state for Eisenhower.
It was they, all

lican

that

serve

the

it

>•

in

announced

margin requirements on the
purchase of listed stocks would
be raised another 10 percentage
points.

said

that

The Supreme Court

1952, over-rode
the Republican convention which had endorsed
Taft, and endorsed Eisenhower as the Repub¬

Reserve took another step to com¬
bat
inflation.
On
April 22 the
Board

ruled

staie Republican convention in

reaeral

the

itself

registered

raise the discount rate
from lVz% to 1%% in mid-April.
A

before the present session of
multitude, probably the most unhappy
gas producers.
They have been trying
a

natural

regulate them.

windows

frequency

Banks

the

are

pleaders

are

Congress exempting them, and Truman, much
to their surprise, vetoed it.
Then they were
given a lift when the Federal Power Com¬

con¬

banks

the, discount

special

and seemingly for good reason.
Several years ago they got a bill through

sharply during the next

up

months.

the

Commission,

for the

credit

all

for years to get out from under the control of the Federal Power

'

for

Of

Congress, and there

three-quarters—

demand

sorted

credit

extent

of

breaking

Taft's

strength

the

and

nomination

was

snatched from him.

the

Treasury in its forthcoming
financing, the System resumed
purchasing small amounts of Gov¬
securities

ernment

in

the

With

open

May financing the Treas¬
offered a 2% 15-month note

for

cash

subscription

well

as

a

as

provision

made

was

for

to

favoring

simply

was

an¬

million which

fight.

released,

to

helped

thus

the

market

credit temporarily.
interlude of easy money
ease

The

proved
the

Thus,

short-lived,

basic

at

have

a

on

committee
up

with

was

held

came

But

it

of

Also,

Eisenhower aides

Congress

last

and

that

the

that

the

President

report

had

not

■/-U-A'vT:
a

of

the

session

Texans and

kept

Republicans

when

Democratic

have

party,

as

majority

a

the

are

session.

it.

the

let

the Senate

the

group

Speaker Sam Rayburn and

re¬

producers.

gas

members

Republicans,

Although

House

they

however, for

supply and demand

the

to

of

The $712

.

natural

out

that

expressed himself

was

the

Eisenhower
a

long at the last session that the natural gas people couldn't

so

certificate, 32% of
the public holdings of the matur¬
ing issue were turned in for cash.
money

Eisenhower, these oil people moved in

study the matter and this body

constantly pointed

other one-year

the

of

get into action until late in

maturing 1 Vfe % cer¬
tificates. of. indebtedness.
Since
no

report

up

holders of

to

election

commission

or

In its
ury

the

on Washington to claim their reward.
But as of yet
hasn't opened his mouth on the subject. He did name

market.

24,

the

of

President

explained

York,

Jan.

on

polW in the following terms:

rates

elements

the
mid-Winter
New York State

Reserve

prices,
to

year.

Jan.

Sproul,

Federal

tightened

money

economy! came

year.

this

to

Association

Bankers

dangerous in¬

The Board's first action to
the

close

Speaking
at
meeting of the

policy of credit

a

As

the

develop

$1.3 billion
Treasury issues over the four
selling

into the market.

of

pace

during the year, interest
gradually drifted upward.
trol

repay¬

26, the System
absorbed the added funds coming

flationary pressures were build¬
ing up, the Federal Reserve Board
moved

loan

r

business

restraint.

in

However, the Federal Re¬

weeks ended

in¬

an

are

currency

conditions Ho

that

economy

reserves

did not permit easy money

serve

parent

from

post-Christmas re¬
and by a

a

of

increase

seasonal

in¬

creasingly

the Board

away

when bank

swollen**foy

levels,

became

time

ysame

to N^hift

the year

of

longest

the

by

of the News

or

tinued to be significantly stronger
than in 1954, driving short-term

its
policy of active e^se^vnich had
been
followea the \ year before.
The supply of money is generally
rr.ore plentiful in the beginning of

rose

pacity

the

The

the

Panama

1911.

The

year.

began

bond.

was

exempts were exchanged
new

business
requirements
for
security
recovery
which gin
underway late in 1954 ad¬ loans trovered under Regulation
vanced*,^ a p j d 1 y
during / 1955. '3?, arid
^ J
Sp'affced'bv. the boom in housing
for

Washington

Ahead

for

note

$1.9 billion—of the called tax-

or

The

demand

in

support,

got

gnd autos, the

3%

the

securities

13-month

offered

since

a

during the present

From

permitted

were

these

issue

sold

15

new

40-year

curity

taken

of

the

bond

they have pursued

In addition,
partially tax-

2%%

March

on

Investment analyst

great praise for the

of

exempt bonds called for redemp¬

of America

Association

Insurance

13-

a

two and

a

half-year 2% note.

a

Research

of Investment

between

1%|% issue and

holders

By JAMES J. O'LEARY*
Director

choice

a

month

Thursday, January 12, 1966

...

it

by

won

leadership

of

out

voted

for

•

the

it

in

bare six votes,

a

the

carry

ball.

Majority Leader Lyndon

Both

Johnson

of

they have had the job of pushing the

lationships which had caused the

legislation. As things stand, it carries the Democrat label although

maturing and called
securities in February by tailor¬

tight-

it has rank and file Republican support.

Report to the Membership of the Life
Insurance Association of America at the
Association's 49th Annual Meeting, New

ing the new issues to the needs of
the market.
Holders of maturing

ing

York

certificates

Board

of

Governors

raised

successfully rolled

mar-

♦The

final

section

of

Dr.

O'Leary's

over

about $14

of

billion

situation

;money

unchanged
to

with .the

add

Fed unwill¬

substantially

Interest rates

serves.

notes

and

were

oft

to firm up as

long

lor

City, Dec. 14, 1955.

credit

extremely
This advertisement is neither

of offers to

offer to sell

an

over-all
nor a

capital

buy these securities. The offering is

made only by the Prospectus.

NEW

the
In

ISSUE

.

at

far

so

such

opposition,

1,250,000 Shares

billion

Even

.debt
limit.
An.
eight1%% tax anticipation cer¬
tificate
fitted' neatly
into
the

COMMON

(Par Value $.01 per Share)

The

Company

of Delaware

was

Share

:

organized under the laws of the State

October

on

11,

1955

for the

of

purpose

constructing and operating a sports stadium known as a
fronton designed for the
playing and public performance
of the game of jai alai with
pari-mutuel betting and other
sports and public entertainments in the Commonwealth
of Puerto Rico.

\

Copies of the prospectus

may

billion

t

reopen this

in gs-.type
ment

Co., Inc.
BO

New York

9-5944

send

a

Nonbank

the

if

investors

allotted

were

banks

their

scription.
$821

dealers

and

of

In

million

were

issued

were

$971

total,

to

the

hitting

concern

needed

of

to

Gov¬

noted

that

with

statistics

each

were

month.

July the Govern¬
positive action was

the housing
getting out of hand.
Consequently, on July 30 the FHA
boom

State

period

construction

highs

new

ment felt that

Telephone..................

this

economists

prevent

from

Continued

on

be

the

jockeyed

into

a

good margin in

a

That

case.

to

it,

one

Senate,
bill,

bill

amendments,

any

they

margin is

un¬

companies

gas

or

is

to

be

then

for

called

isn't

the

natural

the

gas

Senate.

want

in

the

a

strong

they

and

had

Senate

in

which

If the House

feeling

to

make

through the House,
event

observers

among

it

gets another
of

the

the

natural

people is

gas

whether

to

take

nothing.

Johnson

if it

the

through

that it will be killed definitely.

has

taken up, within a few
the

however,

their

squeeze

back to the House.

there

question

loaf

a

bill
go

scene

Senator
*

circumstances,

can

announced

If such

up.

made

matter

that

when

the

legislation is

days, that the original Senate bill will be

to

back

goes

frill should be passed by the

a

conform

identically
the

to

House.

with

the

The

House

situation

is

anything but bright for the natural ga$ people.

sub¬

additional

began raising $100 mil¬
weekly on its regular 91day bills at this time.

By the end

at

The
half

page

38

loans

A. G. Becker & Go.

from

insurance

companies,

to

Offer DanSy Shares
Public offering of 198,810 com¬
shares
of
Danly Machine

mon

Specialties, Inc.,
was
made
at
per share on Jan. 11 by an
underwriting group headed by A.
G. Becker & Co. Inc. of Chicago,
111.
The offering includes 180,000
$13.25

shares

which

nancing by the

represent

new

fi¬

and 18,810 shares sold by certain share¬
company,

$1,687,500 and to expand plant

the

present funded

debt

and facilities.

Danly has for many years been
leading producer of die sets

the

and die makers

supplies and, since

the close of World War II has be¬
come

of

one

of the

mechanical

Its

current

orders,

leading producers

stamping presses.
backlog
Gf
press

amounting

mately $79,000,000,
present

to

production

approxi¬

far exceeds

so

facilities
(

holders.
Proceeds

retire

of

also

residential

the

have

legislative

of the long-term 3's
in July.
The Treas¬

Throughout

been

alloted

million
an

have

people

to

formidable

a

In addition to this formidable

against the proposition of accepting the House

up

necessary,

payments.

are

getting

whack

savings

their,

however,
"liberals"

important compromises to get the bill

would

sav¬

65% of fhe $749 million for which

on

Address.

or

■

of

part,

increasing

Name.




that

institutibns" could,'

ernment

Zone

To attract

lion

copy of the prospectus relating
Common Stock of Puerto Rican Jai Alai, Inc..
me

announced

defer

ury

6, N. Y.

•

Please

issue.

these

they

some

was

investors, the Govern¬

under

believe they

outright, without

$2

quickly overddditiorf, th'e Treas¬
ury was encouraged by the .con¬
tinuing support for the 40-year
3's
(premiums1 had
consistently
ranged from about one-eighth to
one
and three-eighths points) to

30%

19 Rector Street

issue

the

and

they subscribed while commercial

be obtained from:

F. H. Crerie &

structure

now,

groups and

They had expected

seemed

bill

sabsCribed. In

STOCK

Price $1.50
per

rate

this

and

But

.

money

gas

Senate

people

$281

month

Puerto Rican Jai Alai, Inc.

people

gas

power

which have set up their own lobby.

following
authorizing
the

natural

public

doubtedly reduced by the activity of the Eastern

to the market for funds
the signing of a bill

of

natural

position in the Senate.

the

exceeded

of

a'onb-year extension

the

bad

savings.
th<? Treasury returned

July

the

of East Coast gas companies.

array

and the
sought from the

flow

unhappiness of

is due to the fact that to the

who have constituted the opposition has been added

for in¬

and

levels,

market

available

The

re¬

bound

the demand

as

remained

high

amounts

solicitation

to

were

money

mortgage

stalment

remained

received

by the

com¬

pany will be used, together with
$4,750,000 obtained by long term

that

it has been necessary for the com¬
pany

to

subcontract

of the work.

.

.

a
■

large part

1

Volume 183

Number 5498

(169)

The Commercial and Financial Chronicle

...

in's

much

of the

occasion

the

Chancellor

will

be

Rising

particularly to exports,

quences,

jj

demands and their perilous inflationary

wage

by Dr. Einzig

seen

in

ming from Government's failure to set an example by dras¬
tically cutting public capital investments. Calls attention to
action of cement and other industries in adopting six-months'
price freeze in hope of abating labor's demands for continuing
wage increases.
Hopes new Chancellor, Mr. Macmillan, will
sharply curtail Government's outlays and thus set the stage
for employers' resistance to higher wage demands.
Holds
credit squeeze, albeit, ineffective, is .extremely unpopular as
its primary "victims" are the smaller firms of limited resources.

;

ment

price

victims

them¬

make

especially if

the

out

written

In

a

centive

such

should

noughts

followed

been

has

by

a

number of other industries which

if their costs should
during that

of 1956, even

continue

increase

to

through

period

written

raise

prices during the first half

their

become

be

the in¬

export drive.

have also undertaken not to

fashionable in recent years, should
be abandoned, and that all
the
six

domestic

example of the British ce¬

freeze,

that

abbre¬

viation, which
has

an

the

reduces

industry, which announced
recently
a
six
months'
price

sug¬

gested

in

thus

wages

increases,

higher
out in full, in order not to mini¬
prices of raw materials, fuel, elec¬
mize
the
impression caused by
tric power, etc. The Government
the astronomic
borrowings,

other

and

items

of

the

There

is

indeed

alarm

higher transport costs, or

figures of Gov¬
spending, wages claims,

ernment

which

of

millions

for

cause

casual

The

again and again to the
growing volume of inflated con¬
sumers'
purchasing
power.
In
face
of
this
flood,
the credit
squeeze
and the other disinfla¬
tionary measures are wholly in¬

benefit derived from
productivity.
In view
of the progress of automation in
many
British industries, this
would
mean
that, although the
higher productivity is not due to
any intensified efforts on the part

the

recently that,

far from

so

of

being overvalued, sterling is now
actually
undervalued.
By
this
he meant that British prices are

like

of

port

argument in

an

usually, opposed
that,

conceded,

if

the

on

the

but to the

workers
of

labor-saving

instal¬

equipment

by the management, the workers
receive
the
full
benefit

would

derived from it.

automation

sup¬

which

claims

wages

the

lation

fully competitive in international
trade. On the face of it, this may
sound

the

increased

Governor of
the nationalized Bank of England,
stated

and

cently that the workers must be

effective.

Cobbold,

of the Transport

head

largest trade union, declared re¬

given

in

Considering that

Britain,

United States, is being

are

of

face

ground

active

the

as in the
adopted in

resistance

of

unions, which fight a stub¬
born rearguard action against it,

The

non-banking

United
Slate

States

and

of December 31,

1955

Bonds

Leans

and

badly, and there is a grow¬
ing volume of protest against this

100,143,895.91

Bends

___,

14,934,539.32

.—

Securities

and

Premises Owned
>_
Liability under Acceptances
Inccme Accrued Receivable and Prepaid Expense
Banking

4,417,731.33

Castctners
Other

61,377.53
1

Resources t

1,139,369.59
342,534.18

TOTAL

$375,833,532.62

unpopularity of the credit squeeze
is
that
the
Government, while
preaching economy, continues to
spend on a gigantic scale. It is
true, in his Budget statement of
Oct. 26, the ex-Chancellor of the
Exchequer, Mr. Butler, announced
.

a

few

Capital Stock
Surplus ___.
Undivided

($25.00

Par

I

B

I

L

T

Value)____

I

E

10%,

Total

Capital

Funds____

for Dividends, Interest,
L;abih'ty under Acceptances

Bank

and

Savings

the

of

received

company

a

4,478,982.64

51,357.17
$375,835,532.62

winning contestants will remain in New York for three

The

days as guests of the Exchange.

a

Junior Achievement is

a

national organization which enables

ruth¬

ganized each fall and liquidated in the spring toward the end of
the school
year.
This was the ninth annual contest for the
best report!

down

cutting

in

Hopes are entertained that the
Chancellor, Mr. Macmillan,
will do better in rthis sphere than

"You

current

cuts- in

ministrative

business—from

finished

ex¬

financial year js

now

tically completed. For quick ef¬
his only mpans would be to
cut down ruthlessly the capital
plans of the Govern¬

and

ment, the local authorities,
the
nationalized; industries
other

highly for the work you've

In coming to grips with all phases of running a
selling stock in an enterprise to marketing the

product—you

are

knowledge and
;■,;
"'';r :

gaining

under the

1107.12

is

a

the Banking Depart¬
provisions of the Banking Law of the State of Ohio,
preferred claim against the assets of the Bank.
of

Trust




Money

on

deposit in

experience
;;r£'

HcnnoJd Adds To Staff

With Coughlin Co.

prac¬

fect

investment

too

which will prove invaluable."

because
the annual Treasury scrutiny of
Departmental Estimates for the

next

commended

1956-57,A

for

penditure

cannot be

accomplished.

It is now too late
to enforce ad¬

his predecessor.

corporation officials:

Funston told the four young

Mr.

for him to attempt

(Special to The Financial Chronicle)

(Special to The Financial Chronicle)
/

DENVER,

Colo.

—

Robert

DENVER,

Colo. — Richard H.
Osborn, Sr. is now With Honnold
and Company, Inc., 524 Seventeenth Street.

F.

Gerwin, Jr. has become affiliated
with Coughlin and Company, Se-

curity Building.

and

corporations.
Any
this sphere
a
long way toward
clear that he really

public

really drastic' cuts in
would

go

it

making

purchasing

sumers'

be

would

up

inclined to yield after
than token resistance,

been
more

the safe

assumption that they

difficulties in

encouter no

becomes
be

in

inclined

than

realize that their

unions

demands are no

matter of
they might be inclined to

conceded

longer

State and

11,805,040.29

12,998,033.04

Municipal Securities

Other Securities

11,535,383.20

.

818,601.20

Stocks
Bonds and

Mortgages

2,120,806.32

.

Loans and Discounts

16,244,556.73

.

576,229.95

Bank Building
Other Assets

484,915.71

;

as

:

strikes

goods at higher

And if the trade

prices.

$ 9,365,091.17

United States Government Securities

difficulties

risking

their

selling

ASSETS
Cash and Due from Banks

to risk losing

through

output

some

rather

moment the
dubious, they

The

prices.

30, 1955

a

resistance to
Hitherto they

stiffer

a

CONDITION

At the Close of Business December

power.

such

of

demands.

would

STATEMENT OF

con¬

gesture
to induce employers to

effect

The

inflated

curtail

to

means

a

claims rather than

unsuccessful strikes.

$65,948,657.61

LIABILITIES

$ 2,000,000.00

Capital
Surplus

6,000,000.00

>

Undivided Profits

1,133,422.09

*

General Heserve

529,210.91

.....................

14,050.65

Unearned Discount
Reserves for Taxes and

71,676.03

Expenses

56,200,297.93

Deposits

$65,948,657.61

Boettcher Adds
DENVER, Colo.—John W. Kane
has

added

been

to

the

staff

of

Boettcher and Company, 828 Sev¬
enteenth

$8,502,876.55

bronze plaque

lessly its own expenditure before
forcing the private sector of the
economy to do so.
>
#
f
*

example

3,791,714.14

340,144,604.33

TOTAL

Section

officers

61,377.53

.

Liabilities

ivhicn

four

luncheon in their honor at the Exchange.

$ 27.308,496.81

Taxes, etc._.

11. S. Government.

ment,

a

(Special to The Financial Chronicle)

"Commercial,

*Includes

The

at

teen-agers, with the help of local businessmen, to operate their
own
small-scale business enterprises.
JA companies are or¬

DEPOSITS:

Other

Exchange,
nationwide

Donald Telschow,

the

was

Keith Funston,

Stock

gineering Co. shown are Miss Mary Lou Keen, 18 (third from
left), Vice-President; Miss Margaret Vernaci, 18, Treasurer; and
19, Vice-President.

s

growing agita¬
tion in Conservative circles that
the
Government should set an
is

There

firms.

risk

3,558,495.81

Reserve

which

however,

moderate their

$11,875,000.00

!

Government

the

target for the credit cuts by the
banks at the expense of private

course,

S

11,875,000.00

Profits

in

cuts

capital investment schemes. They
did not amount to anything like

\ I

r'A

York

One of the main reasons of the

8,422,744.74
145,103 512.22

;____

j:

(second from left), President of the New
on Jan. 10 presented First Award in the
Exchange's
contest for the best 1955 report by a
Junior Achievement company to Hans Brandt, Jr., 18 (third from
right), President of the junior enterprise of Metal Engineering
Co.
of Houston,
Texas.
M. J. Rathbone (left), President of
Standard Oil Co. (New Jersey) and Chairman of Junior Achieve¬
ment's national expansion campaign for 1956. also greeted the
Award Winners at'the Exchange.
Other officers of Metal En¬
G.

victimization.

unilateral

higher
$101,264,827.80

Bonds

Discounts

af¬

are

fected

outlook

Banks

Municipal

O-her

firms

passing on to the consumer the
additional costs in the form of

OHIO

RESOURCES

from

But

resources.

business

would

Due

have

can

smaller

on

and

firms

always obtain more from
insurance
companies
or
other
they

little

Cash

big

ample resources, and if necessary

have

as

have to curtail their

even

wages

Statement

adequate reserves

plans of expansion, and many

put

CINCINN J\T 1,

in

credit

the small firms which

possess

activities.

the

industries

and

The

new

General Workers' Union, Britain's

added

Mr.

of re¬

lenting.

hun¬

cheerfully

are

show, however, no sign

ter

in

way

and

industrial firms

similar line, in the hope
that it might influence the atti¬
tude of the trade unions. The lat¬

to adopt a

economy,

good

millions

of

tens

dreds

national

the

over

intends to exhort

alarming

Par¬

ineffective as it is, has
unpopular. Its chief

of them

British in¬

ment

London

Einzig

for

The

the

power

sell

and

first

"Times"

purchasing

to

market

New

Year's

dustries

as

domestic

it too easy for

makes

is

some

inflation of

the

consumers'

of

writing
£500m.,
for
brevity's sake.

leader,

with

case

because

above,

as

instead

Paul

(though that
industries)

non-competitive

it

is

markets.

much, because they
British prices

so

to

world.

own

in

borrowing
facilities
outside
banks. Ihey are forced to aban¬

threaten

exports, not

its

of

of

i

pressive,

in

are

not

do

In
reality, wages demands are
highly
detrimental
to
British

m

barrage :of

a

part

supporters
the
press,

business

squeeze,

no less
The figure, is
nothing if not

demands totaling

£.500,000,000.

world

the

on

become very

of wages

than

the

in¬

Govern¬

the

to

subject

liament,

selves

of

is

Conservative

in Britain started under the cloud

out

„

treat

to

unearned

as

meantime

criticism

don

would

concerned

LONDON, Eng.—The New Year

Conservative

for taxation purposes.

the

the

by

Budget,

Exchequer

increases obtained in such

comes

stem-

next

the

Parliament

of

circumstances

conse¬

as

of

pressed

Members

By PAUL EINZIG

wages

I

NYSE Makes Junior Achievement Award

moral

the

Blamed On Government
;

have

justification. Indeed
it would not be surprising if on

Inflationary Trend

,

said to

claim cannot be

the

13

New

Street,

York

Stock

members of the
Exchange.

He

KINGS COUNTY
TItUST COMPANY
tilobliihed 1889

FULTON STREET al

the

corner

Member federal Deponf

was

ment

formerly with Allen Invest¬
Company.

of COURT SQUARE

the Heart of the Civic Center.

Brooklyn

Insurance Carporal.on

14

(170)

The Commercial and Financial Chronicle

Thursday, January 12, 1956

...

'

*

MR.

Conference Board Forum
Economists Mostly

Bradford

A further expansion in business
activity throughout 1956 is seen
by a majority of distinguished
economists
participating in the
of the

nomic

MR.

the

tional

Number

dations

Board.

ence

t i

consensus

the

despite

is

t

stress,
yield
highest

o

n

ecutive
i

n

Economic

viewing

under

train-

g

unques-

.

that

year

NICB

has

of

appraising

the

future

trend

of

.

Business

Outlook

cently

session

President,
Management

Radio

Corporation
Nathan

M.

Marketing

Service,

U.

S.

Paradiso,

rector-Chief
of

Assistant

Reid,

Assistant

Di¬

Roberts,

trend

line

of

growth

subtract

Slade,

as

in

5%

the

compared

first

"The Analysts Journal''

George
W.

C.

Smith,

the

Dodge

higher

of

first

little

.

F.

School

Accounts

participating

.

Ellis,

Pont

de

store

should

approx¬

tween

Economist,
&

E.

Fabricant, Director
Research, National Bureau

than

of

Gainsbrugh,

Economist,

National

Conference

the

second

penditures for

and

Chief

lower

Industrial

Edwin B. George,

On

1955.

George

P.

Hitchings,

in

+he

half.

.

f i
.

v s

D.

H.

•nni^

Kaplan, The

first

K?

muf

2%.

The

P.

McNair,

Professor

ond

half

1953

Marketing, Graduate School

of

Business

Q.

the

Administration,

University

Glenn

There

Har¬

Yale




for

.

Professor

University

of

do not

expenditures

food,

will

expenditures.

be

retail

some

to go

before

the

assume

.

maintenance

outlays

quarter

of

around

the

the

1955

level
of

the

year.

•

I

be

half

1956.

.

ing

.

of

Ris¬

.

costs

for

equipment

are

points,

also,

f

the

of

s

build-up
first

There

is

There is

.

.

.

This

.

historic

our

.

.

the

on

panding
T.

Ira

half.

E.lis

We

have

to

up

basis

credit

kind

some

of

and

yet, but they
' ■■.'•.77v v;7'''7/7

.

the

end

.

.

.

The Federal Reserve Board

(of
may

*

nondurables' producrise from 125 this .year

to

.

half, and

.

half, again based on expected
excess of inventory accumulation
.

?

at. best steady
MR.

Expects
ment

It may be falling.

^

High

the

number

of

Con¬

will. continue to
ana fnore exf floor area
In

housing

be down

?n^

Houses
become larger
.

.

.

The maintenance of
of

capital

1956

can

demand

high rate

a

investment throughout
be expected.
.-The
goods

and services
has fully kept
with the

rising

ca¬

pacity.
The

.

.

I

.

not

It is most

.

of

the

programs

quickly

enough

MR.

unlikely

big

tne

.

.

.

companies

ready

.

be

make

have

been

public

to
for

com¬

large

outlays,
in
■/. The con¬

.

7

••

going
along serenely
•

with

heavy

buying

and
in

confidence
his

income

however,
evidence

of'

upsurge

that

was

shown

be

in

earlier

the

Year

(1955).

will

.

be

D.

A.

There

.

H.

Kaplan *

no

great rush to increase inventories

beyond

The

.

hold

1956.

Inventory, and the
General Outlook

;

ing,

d[°P win
"^only about
6%.

take

affect

KAPLAN

will

drop

...

Federally

will

to

for

current

On Attitudes,

the

struction—the

the

look

from

assisted

con¬

demand

strong

in

in

pres¬

sure,

being
placed
on

existing

ca-

pacity.
.

year

.

.

for

pec^ plant and
Paradiso

houses

is

equipment

ex—•

penditures

to

Dr.

extremely
strong. ;The
are

comfortable

a

George C. Smith

of financing.

nonfarm

the

disappearance

a year>

of

hous-

ing units from the market is

ning around 300,000
year.

.

.

.

We

households

at a' rate of 800>000 or s0
and

run¬

400,000

or

a

(One) important factor

is the upgrading of people's in^0

which

them

makes

buy better houses.

is

.

.

.

shortages

hand-to-

the evidence that

as

easing continues to

are

Mv

net

is that there will be

.

expectation

a

creeping

up

of inventories in 1956.

...

.

The year

.

1956 should carry

through the first half substantially
above

the

first

half

of

1955, to

a

record annual GNP rate of around

$405

billion.

easing

in

want

probably

There

political
.

.

keep

.

half GNP from

billion.

should

the- second

powerful

Another

the very definite tendency
toward style - consciousness in

housing.

pace,

accumulate.

one

forming

comes,

Busi-

mouth

demard

question is

has

resulted

basic

.

recent

upsurge

J.

do

.

for

pace

Louis

I

prospects.

dollars

.

the

There is lack¬

Pressure

,

price

(an¬

of

ume

of

.

many

to

I®% below 1955.

sav¬

the

that

.

,

.

mitments

struction
1956

Is

guess

package of

certain

deviation

trend.

readjustment.

Invest-! only
about
on- 8 %.
and in

Capital

in

definite dollar terms.

drop 1 will

v

Reflecting

Capacity

.

much

suffered

.

PARADISO

a

taxes, sufficient to reduce

expenditures,

ex¬

that
is,
in the first half.
I think the;
trend at the end of 1956 would be1 physical vol¬
.

surplus of
$1.5 billion

between $3 billion and
$3.5 billion. As to state and local

past

rapidly

Nonresidential

st

budget

My

have

sumer appears

In

.

decline in the sec-;

some

shall

reduction

or

yields

-

ond

.

of

we

Sees Drop in Homebuilding, But
in

at

a

...

Rise

-

to

outlays

balance, and the

between

Leading

rising.

are

of

cuts in the personal and corporate
income tax and in the elimination

It

MR. GEORGE SMITH

of textile inventories

GNP

peak of

a

not

in

that

excise

credit infla¬

of

Total

conservative

budget to show

of

one

re¬
.

.

.

conventional

$2 billion.

ap¬

never

is

and

*

dangerous build-up

a

the
almost

somewhere

.

evidence of

be

cash

inflationary credit

.

it

...

persistence

expect
to

which

the

.

that rate throughout the rest of
the year. It is not unreasonable to

the

which

over

1956

assume

and

has all the earmarks of

tion

in¬

.

of

nearer

recovery

enjoyed

.

Federal

of

estimate

no

George

outlays (should be about) $46 bil¬
lion during the first two
quarters

.

13% in

is

growth

brought ourselves

of.

little

1954,

full employment and

a

inventory in
the

.

term

booms.

half
i

.

-

year

the

1956

search.

av¬

100%

or around

August,

have

we

cycle
in

in

ment.

level.

turn

down

might

and

extensive

apparent that we are going to
have a change of pace, and it
may
be that we are in it at the mo¬

One point that
will

.

are

more

intensive

r,

is

the

textile

.

.

urging

strong

proaches that rate of increase.

5%.

below

present

outlays.
Scientists

of

the increase from

yeari

jow

theMir9tj ,'half
and,

bound to raise

..

in the second half.
The Federal Reserve Board

the

perhaps

be,

may

than food-

back above $20 billion

rate).

.

be

half,

Smith

B.

some

5%,lower than

on

expect

...

nual

Cuts

slightly in the

85%

15%.

expect that

advance in items other
stuffs.
I would

ings
Saxon,

Economics,

I

goods

will

.;

defense

first

capacity dur¬
ing the first

long

absolutely to any extent,
they will be proportionately
higher because of the decline in
durable

Tax

surprised if
they increased

close to

to

of

but

of

vard

from

n? ?o«
of
19o5,

half

hand, might be slightly
but only because of the

goods

Slightly;

wouldn't

erage out 95 %

sec¬

the

crease

Brookings

I

of

1^1 half °ff,195? Index,"now WM+'m come~up

...

price factor.
soft

Institution

Malcolm

It

and

change.

will be at about the present level.

t

Ex¬

.

consumer

Expenditures

lower,

Manager,

Economic Analysis
Department,
Ford Motor Company
A.

level

net

no

near

the other

Bradstreet, Inc.

Up

Expendi¬

Probable

the;

capacity.

Textiles

sumer

Economist, Dun

tures
■

somewhere

...

&

.

yea

quite

ELLIS

1956.
I expect con¬
expenditures on services to
continue to increase
as
in

Board

-

Government

Edwin B.

Bradford

MR.

halves,

durables,
particularly automobiles, will be

Research, Inc.

R.

in

nonresiden¬

GEORGE

Federal

say;

part

the

current quarter-million rate would

being defi¬
nitely stronger
ir<

of

(The)

physical

a

in

demand

early

in

.

sec¬

ond

I.

Com¬

Solomon

the

first

Prof. M. P. McNair

Economic

the

rela¬

tionship be¬

pany

Martin

reached

,

during

6.5 million

nearer

million

Any change in exports

tion)

the

imately

Commerce,
Finance, New

Nemours

increase

neigh¬

would

the

domestic

a

.

same

University

T.

7.4

dealer stocks show

break

show

of

and

to

up

million

—

nomics,

du

half

in

ment

Jules Backman, Professor of
Eco¬

Ira

expect

perhaps 127 next year.
The>.
second
h a 1 f.;
pattern- for general
nondurable^
Depart-, goods may be a rise in the first

included:

York

with

$3 billion if domestic sales should

Index

than
even

Corporation

Members

117

I

drop to the 6.5 million

better

sales
Forum

1956,

conceivably they
might do a

;

Economist,

half

with

of this year, and

Editor,

-

next year or

question.

tons of steel, and next year the;
outlook is likely to be in that

and

o

McNAIR

Vice-Presi-

Managing

would
million

two

;dent, First National City Bank
Helen

av¬

sustain¬

a

Total retail sales will be

by

Vice-

—

B.

and that

cars

Foresees Strong Retail Trade in
The First Half

President
Retail, SimpsonsiSears Limited, Toronto

George

would

second

Department of Commerce
Morgan

restore

Con¬

Statistician, Office
Economics, U. S.

Business

million

therefore

MR.

J.

will

not

units from present rosy forecasts.

G. Nourse, Economic

I

the

of

of

am

one

able

De¬

sultant
Louis

I

.

eraging 1956 down to

partment of Agriculture
Edwin

overdose

an

been imposed

level

.

say

Koffsky, Chief, Farm
Branch,
Agricultural

Income

generally realized.

activity in this area.
ready to dismiss
the
hypothesis that automobile
companies have oversold 1955 by
.

Doherty,

^Television

maladjustments

We have had

.

.

the
P.

per¬

to construction, and I
question that taking off the small
credit
restraints that
have
re¬

included:
Richard

and

stimulants

Guests participating in the Fo¬

<

rum's

the

have not been

yielding precise results.

ence

seriousness

of

MR.

in¬

would

ricultural

even in the hands of skilled tech¬
nicians—an art rather than a sci¬

something like

year

have little impact.

The

.

good

lit Million Tons of Steel, But
A Change of Pace at Mid-Year,

.

that have accumulated in the ag¬
sector of the economy

impressive, but
forecasting remains

that

.

sistence

business has been

stressed

bottomed

-

economy.
.

building we
increase, but

an

fiscal

economy of lower car production
in 1956 would be a maximum of

.

well

tenth

upsurge,

.

last

borhood.

.

prosperity has

sponsored Forum discussions. He
noted that the Forum's record on

an

come

We shall probably turn out this

developments

.

be

In school

BRADFORD SMITH

1955. 7
Such a volume would
still exceed any year prior to 1955.
The
direct impact on
the

Chairmanship of John S. Sinclair, revealed the
Edwin G. Nourse
President, The Conference Board.
regenerative
Mr. Sinclair, in
commenting on qualities of an
actively-managed,
the session, stated that this
was. resourceful
and
the

will

.

building of about 8%.

third

rather than borrowing

power,

than

ably has

period

the

of

the

same

market for 1956

The prolonged

Forum
was

owner¬

I would

ownership levels consistent

.

prospects

in

ing

ex¬

.

tial

.

of about 12%

area,

add

volume

months.

from the future.

the

advanced.

known.

.

a

.

.

on

ti

12

present adult population and buy¬

s

busi¬
of

1955

car
...

in the nature of attainment

...

level

ac¬

the greatest volume of in¬
dustrial production this nation has

The

of

insti-

i

Among

and

1956

eco¬

nessmen

tivity, the largest national output

ever

t

u

and

to upgrade their
ship all along the line.

the

show

have

is

.

throughout the remainder
MR.
•

willing

to

.

of

Manufacturing

.

Hitchings

w e r e

regard

on

have

occurred

able
;

rate

experienced

nine to

because

people

strong" na-

It

.'.

.

based

nomic

1956 will

economic

of

terms
re-

improved

signs of strain

Sinclair

year
con-;

.

whether it will

forecasts

slowing down in the

model

building

will

not

crease

1955

Strains

.

.

the basis of our survey (De¬
partment of Commerce), shows a

demand in the

a

more

increasing

S.

in
1

o n a

sources.

Forum

is that

of

but

.

volume

6%.

above 1955.

on

The

tremendous

Strength,

s year.

.

full
.

vear

machinery
by rail¬
roads.
Other industries, commer¬
cial, public utilities, mining and
nonrail transportation, have indi¬
cated
little or no change.
However, the first quarter of'1956,

sus¬

.

.

about

up

turing firms, particularly the du¬

for

another

ditions underlying the boom. The
boom is based on very solid foun¬

Confer¬

the

highlights of

are

be

$32

rables—iron and steel,
and
automobiles, and

the

higher

tained

at

| indVkated ubry

than 1949-1954
can

this

of t

quar e

T

volume

a

40%

Economist,

(There are) four favorable

Na¬

Indus¬

trial

and

is

of

auarter

1949-

hand, it
unlikely

that

estimated

building

volume than that achieved

On

The seasonally adis

physical

commercial

again in floor

| ®,h

other

NOURSE

Underlying

auspices

of

1954.

Auto-

sharply increased
1955, it is evident
support a
higher

can

during

Forum

e

The

following

we

year.

under

t h

John

The

Decline' in

buying in

average

the remarks made by participants:

Eco¬

held

of

Smith,

The

^"°,n

that

United States Steel Corporation

session

latest

1956.
total

In view of the

see

B.

^er
justed

car

activity
rising throughout 1956, but at lower rate in
last six months. Specialists discuss outlook in
their respective fields.

/

continue to rise in the first quar-

mobile Production

Optimistic

Majority of participants in Forum

HITCHINGS

Anticipates

The

be

half;

forces

the

an

but
will

second-

getting below $400

year

Continued

as
on

a

whole

page

26

t

Number 5498

Volume 183

The Commercial and Financial Chronicle

...

(171)

of the

Mr.

commercial

OFFICERS, ETC.

Bankers

and

REVISED
CAPITALIZATIONS

Company

New

the promotion of

ager

of

of its staff. John W.

Vice-President

as

Assistant

an

and

Hamilton

with

tne

bank's

finance division

Bolton and Mr. Etzel
Street

42nd

office.

Assistant

Man¬

at

the

Street

bank

with

the

fice.

office

46th

All

and

Assistant

prior

Vice-President

institutions in

1951.

the

charge

Office

of

since

He has

Empire

Street

/

-3;.',

v

if

Cain,

Jr.

branch

Chase

been

Total

Bank,

Jan.

6.

i-*

National

Sept. 30/55

7,642,583

rity holdings—

18,439.267
13,907,042

12,750,275

t 1,400,916

1,334,765

Undivided

the

of

of

;

stock

profits—

John
the

T.

*

*

of

Review

Officer.

Charles

time

Vice-President

A.

Comptroller.

.

for

many

Vr'-'"

were

At

the

York,, has

as

*

is

York

an¬

.

$■.

Sept. 30/55

Cash

Of¬

S.

Govt,

•

Loans

1,943,005,835

Undivid.

in

11

# :'»• / if

•

the

/•

Trust

The

until

G.

1959,

V'

'

to

for the

home

In

•

New

on

Jan.

Herman M. Metz and Fred

Pfeiffer, .Trust Officers; Henry
F. Forsstrom and Alan B. Purdy,
Assistant Treasurers; Torleaf H.
G.

J3enestad, Leslie J. Christensen,
Albert
Friedlander,
Ernest
M.
Taylor, /Frederick
W.
Turner and Elizabeth R. Wemple,
Secretaries,.

Assistant

/

and

to

ant

Managers.

/

.

of the

-

-J*

;•

^

.

'

'"l

1

I

\

'

f

Irwin

W.

Smith

has,

Company

announced

of New
Jan.

on

if

TRUST

York, it
by S.

10

Colt, President. Mr. Smith
will assume charge of the bank's
State
C.

Lauriston

succeeding

Office
Lake,

Vice-President, in the
management of that office.
Mr.
Smith, went with the Bankers
Trust after its merger with Title
H.

Kyle,

Guarantee
He

&

served

until

he

Trust

Co.

in -various

became

in

1950.

capacities

Branch




Credit

-bank

new

is

Baldwin

of

of

and

that

Vice-

was

when

bank

he

v

sit

if

25

Deposits
Cash
-

shares would

an

June 30/55
$68,818,492

56,200,293

59,217,583

and due from

The Merchants National Bank &

its capital as of Dec.

increased

$1,200,000 to $1,500,000 oy
the sale of $300,000 of new stock.
•i-'-

•

'

•
.

^

v*' :'-e\ *
The

.

"•

per

scription

to

Loans

&

Y., which

Buffalo, N.

The

Bank

N.

Y„ voted

mend

holders

of

of

on

Continued

per

George
the

J;

by

President of

Sluyster,

Herkimer

jointly

Bank and

Baldwin

Maull, President of Marine Mid¬
Corporation.
The proposed
bas's of exchange is six
and a

14,781,694

common

profits—

1,133,422

975,335

First
was

,

shares

Marine

of

for

stock

The

National.

established

each

in

Midland
share

last

1884

of

named

and

The

Caja Autonoma de Amortizacion de la Deuda

service of the external debt

approved by Law No. 8962

of

July 20, 1948, announces that thb fixed annual interest
of 3% has been paid for the year 1955 to the holders of
the direct and

of

indirect External Debt, of the

Republic and the municipalities covered by Law No. 5580
and which assented to the

new

plan under the aforesaid

Law No. 8962.

The

Sinking Fund established in accordance with Law
applied to the redemption of the follow¬
ing bonds, purchased below par-: £502,767, US$2,745,500,
Swiss Francs 2,231.000, all of which have been withdrawn
from circulation. The average price of these purchases
was 42%.
After making these amortizations the balance of prin¬
cipal amount of bonds of the External Debt was as follows:
£16,489,605, US$101,004,000, Swiss Francs, 81,668,800.
The Caja Autonoma de Amortizacion de la Deuda
Publica, in accordance with the provisions of Article 3 of

No. 8962 has been

Law No.

also

8962

announces

that holders of bonds of

the external debt who assented to the

plan of service of old
new plan under Law
No. 8962 will be entitled to receive for the year 1955
interest at the rate of $6.28 per $1,000 bond calculated
on the basis provided in Law No. 5580 with respect to the
following revenues:
Law No. 5580 and do not accept

the

Participation in the profits of the Corporacion de
'

Yentas de Salitre y Ycdo of Chile

Share in the taxes
of

copper

cn

US$2,535,470.

income of the 4th category

308,26S.

companies
on

and

importation of petroleum for the

copper

Law No. 6155

(Article

industries

of January 6,

7th

of

297,148.

1938).,.../

US$3,140,886.

Up to the close of the year corresponding to this decla¬
ration 95.96% of the dollar bonds, 98.67% sterling bonds
Law No. 8962.

Pursuant

-

the

to

;

•

extension

.

;

.

granted

by

the

Supreme Government under the terms of Fi¬
nance
Decree No, 10,234 of December 10, 1954,
the

period for acceptance of the exchange au¬
will remain cpen until

thorized by law No, 8952
December 31, 1957, \

Holders of bonds assented
entitled

to

receive

the

to

aforesaid

$1,000 bond

on

Law No.

5580 will be

payment of $6.28 per

and after February 1, 1956, against

pres¬

entation and surrender for cancellation of the two coupons

corresponding to said payment, (in the case of the City of
Santiago, Chile Twenty-One Year 7% Ext. S.F. Bonds
dated

January 2, 1928, the said payment will be made by

presentation of the bond for endorsement of the interest

payment) together with

an

appropriate letter of trans¬

mittal, at the office of the correspondent of the undersigned
in New York

City, Schroder Trust Company, Trust

Department,
N.

Y.

Letters

office of said

61

Broadway,

of transmittal

may

New York 15,
be obtained at the

correspondent.

L.

Great

transferred

to

City

Neck
the

office,

main

effective

was

office

in

Monday,

it is announced by
Frederick Hainfeld, Jr., President
January

page

Publica, in accordance with the readjustment plan for the

cur¬

Tindle,* Vice-Presi¬ rently has deposits approximating
million. Its capital stock
dent
of the
Long
Island Trust $10
Company, of Garden City, L. I., consists of 10,000 shares with a
and former manager of the Com¬ 'par value of $33 per share and it

Garden

stockholders
on

Chile

of

Jan. 9, to recom¬

made

announcement

16.244,557

pany's

present

18,400
for sub¬

Service of Bonds of the External Debt

the

Bank of Herkimer,

favorably
to
the
stock¬
the 'exchange
of their

discounts

security

Walter

be offered

9,

also
issue

carries

of

$140,000

a

$70,000
-

Surplus

preferred

stock

redebmabie
and

PUBLICA

~

SOLMINIHAC K.
General Manager

Santiago

at

undivided

profits approximate $400,000.

CAJA AUTONOMA DE AMORTIZACION DE LA DEUDA
EDUARDO

December 31,

1955.

in¬
par

-18,400

Nov. 29

on

Directors

of

Beard

First National

half

Undivided

by

and 96.08% of the Swiss franc bonds had been assented to

*

*

National

Lincoln

10,183,633

*

$5

*

13,229,513

9,335,091

an

k's

stock

12

from

11,805,040

bank;

holdings ,|_

a n

additional

*

N. Y.

Trust Company of Syracuse,

land

U. S. Govt,

b

semi-an¬
cents

75

The

shares.

Republic

nitrate

Y.

39/55

——

authorized

the

capital

The

Bryn

cents

regular
of

of

of

declared

5

of

the

Share in tax

if

stock for shares of common stock

Vice-Presi¬

dent, who will move to the Fifth
Avenue branch to assist William

the

/■. /
of Marine Midland Corporation,
COMPANY,/i cf
Buffalo, N. Y„ according to an

J $65,948,658

resources

been

Sloan

Empire

1241,

•

elected Vice-President of Bankers

was

No¬

Vice-.

Company.

EROOKLYN, N.

Total

Trust

a

of the Banking

Dec.
_r

of

Thomas, Major U.S.A.R.

1945, after four years in the
he joined The Peoples State

•f

Board

since

been

if

■

COUNTY

KINGS

'

~

the

accom¬

left in March of 1955.

serve

since September,

*
-

has

is. in Charge

Division

III,

Company

1922,

President

and,.. T.

Carl Palmer, Assist¬

Cook and

R.

to

likewise

Christmas Club accounts,
business loans, etc.

President

term were Adrian M.

Trust

vember,

.Kenneth M.
Mueller^ Ei-M/ Townsend, Steven
Frothingham i

same

York

Ar¬

W. Hiseler,

Clyde

Gilmour,
thur
P.

capitaliza¬

Mr.
Brewster,
a
former Vice-: enlarged its capital from $220,000
to $275,000, has further increased
President
of
Stone
&
Webster
its capital to $300,000, as of Dec.
Inc., was for some years prior to
19, by the sale of $25,000 of new
the second World War, associated
stock.
The .earlier
increase was
with The New York Trust Com¬
noted in our issue of Dec. 8, page
pany in the Trust Investment Di¬
2430.
vision.
Mr. McDonald, who hasbeen
associated with The New

appoint¬

following

the

nounced

announced

was

by N. Baxter Jackson,
Mr. Jackson also an¬

11

Chairman.

ments:

it

York,

Co.

Jan.

dividend

army,

Bank

Jennings, Chairman of the Board
of
Socony Mobil
Oil Co., Inc.
and William F. Cutler, New York.

<)f Chemical Corn Exchange Bank
Of

a

m

35

loans,

Cashier

Chairman of the Board
and Hulbert S. Aldrich, President
of the company and B. Brewster

Vice-Presidents

Assistant

than

more

deposit vaults, busi¬
personal checking ac¬

and

counts,

Jan.

Edward C. Brewster
McDonald, both of New

Re-elected

will

bank

New

on

elected

Directors

York.

Ellsworth B. Woodland have been
elected

in

County

The bank, with

ness

Massie,

J.

Y.,

modate, safe

Com¬

The

of

Company
of

Board

Phillips, Walter C. Sundberg and

C.

N.

Place, at Jericho Turnpike.
The opening will be celebrated by
a
two-day "open house" starting
Friday morning, Jan. 13. Interest
of 2 V2%
compounded quarterly

New

"

'

meeting

stockholders

the

and Willis

.

of

Bank

Island,

Long

bank,

newest

National

Miller

Bennett is a
of the Brevoort Savings

Dodge,/ Kenneth F.
Foster,
Sylvester
F.
Majestic,
Robert W. Ostermeyer, Willis K.

y

to

on

open

Walter F.

York

72,294,073

it

■

increased

tion of $1,000,000, is located at 8

Mr.

1941.

•/■,*

3,230,918,343

76,433,552

a

,

of

Trust

Manufacturers

At their annual

profits

Directors

dividend

share,,and

bonds

years.

He had been President
Mortgage Corporation of
York at the time.it merged

1,700,348,708

3,510,002,8j8

of

Trust

the

of

$5 from
of shares

Jan. 13, it was an¬
nounced on Jan. 3 by the bank's
President, William J. Boyle. East¬
ern, it is announced, is the first

the

se-

discts.

&

be

County's

Smithlown,

Bank.

hold'gs 1.230,522,456 1,239,990,658

curity

value

Board

on

'

A.

to

number

will

Eastern

will

years.

Trustee

6,353,830,125

due

banks—

from
U.

6,780,358,239

—

and

reduced

the

Suffolk

by Horace C,

pany

Total resources- 7,509,247,604 7,060,591,615
Deposits

George

value

par

be

and

Suffolk

Company

with

'

$

.

will

The

*

announced

of

BANK,

New
D2C. 31/55

.•'v'/'-v-/.://'

in

*

Mawr

Mawr, Pa.

nual

if

a

Flanigan, President. Mr. Bennett Will be paid on savings accounts,
recently retired from Manufac¬ President Boyle announced and
turers Trust Company where he,; 2V2% he states will also be paid
on
corporate
time
certificates.
was a Vice-President for the past

NEW YORK
:

on

463,886 from 231,943, Mr. Heaney

Secre¬

Assistant

*

Trust

turers

'

,

MANHATTAN

CIIASE

also

2,307,517

Security

Emigrant Savings Bank
years.
: ' National bank to be chartered

14
THE

-

,

1,918,207

their annual meeting
to split the bank's

approved,

$10

Both have been associated

the

10,

outstanding

■

appointment of Carl

Office

taries.
with

Deputy
Comptroller,
was
ap¬
pointed to succeed Mr. MacTavish
as

directors

18,520,845

discounts

Huntington,

J

two-for-one,

stock

fice and John W. Love of the 31st
Street

the

of

President of j said.
Savings

S. Falk of the Grand Central

Agemian,
formerly

and

23,009,942

Develin," President, an¬
on
Jan.
5
that
the.

19,331^25

&

❖

of

Industrial

New

the

nounced

//■/.;/'////.'/

*

Madden,

Emigrant

Bank

Ifl

on Jan. 9, by J. Stewart
The
appointment of Peter E.
Baker, President. Henry J. Mac- Bennett as a member of the Ad¬
Tavish, Vice-President and for--, visory
Board
of
the
Brooklyn
Office
merly Comptroller, has been ap¬ Trust
(177
Montague,
pointed to the newly-created post Street,
Brooklyn)
of
Manufac¬

Loan

nounced

Heaney, President has announced,

secu¬

/ ''//;//:

////

New

Bank

&

Jan.

on

announced

same

*

Bank

proposal at

17,666,876

discounts

Govt,

S,

Loans

changes nn the senior
administrative
organization
of

of

in March and September last year.
DeHaven

secu-

holdings— -*19,608,456

The

extra

of

Feb.

semi-annual dividends of 75 cents

*

Bryn

both

stock¬

close

associated

Long Island, N. Y., will vote

7,129,163

due from

and

banks

Mr.

Manhattan

been

/rify

to

the

Company for the past 10

Shareholders

36,832,379

U.

Further

The Chase

an

F.

if

38,966,600

Cash

-:

Bridg¬
wood, formerly a Senior VicePresident/ is head of the trust
'department.
Mr.- Cain,
also
a
former Senior Vice-President, is
in
charge of the bank's inter¬
national department.
on

Govt,

stock,
1,

at

years.

<.

Dec. 30/55

Deposits

lYork, J. Stewart Baker, President,
announced

as

National

Company of New

has

Erdman

with the

resources—$42,644,444 $40,936,598

of¬

appointed

Vice-Presidents

Manhattan

served

Trust

Mr.

been

State

1953.

"

loaning

' /'/■■/■•/.//•

if

have

Executive

11,271,418

from

years

Erdman, As¬
Secretary of the Long Is¬
Company, is now in
charge of the Trust Company's
Great Neck office, effective Jan. 9.

UNDERWRITERS TRUST CO., NEW YORK

John B. Bridgwood and Charles

r

86,748,627

16,901,426

due

record

10, 1956. The Bryn
Mawr Trust Company paid regular

crease

11

Sterling

Trust

business

Mr.

and customer contact activities.
■

he

the

of

William

land

s

in

'For

sistant

'

.//<•'■/•.

Uaf-NS.

Company for the

years.

that

to

York.

Mr. Lake, formerly Viceof the Commercial Na¬

in

Mr.. Higley

engaged

are

100,804,141

and

banks

Undivided profits— "

Bank and

Company in that capacity at the
time of the merger of the two

Empire
office, Mr. Borchert at the

State
21st

is

Cash

the

officer

sjs/.

Adams

Deposits

of

capital
March

on

holders

June 30/55

the

on

payable

resources—$111,352,997 $95,704,660

three

Trust

share

-V

Dec. 31/55

Total

Loans

was

tional Bank, joined Bankers Trust

with the

are

branch

Branch

Assistant Treasurer. He

President

con¬
Mr.

while

and

in 1952.

Assistant Secretaries. Mr. Pross is
associated

offi

COMPANY,

JERSEY/'

past

before joining Bankers Trust

an

named

Adams, David B. Bolton, Fred E.
Borchert, Jr., Allister A. Etzel and
Richard
G.
Higley were made

sumer

Manor

TRUST

AND

NEW

with
Man

named

was

Stewart

BANK

which will open officially on Feth
7. Mr. Tindle has been associated

tj—

Pross

COUNTY

PATERSON, PASSAIC AND LITTLE FALLS,

Garden

newest

*

announces

industrial fields

City Office, East
City Office,' Great Neck
office, and the Trust Company's.

BRANCHES

York

charge of
business in the>

and

the

in

Garden

NEW

six members

be

new

for

CONSOLIDATIONS
NEW

Trust

will

developing

News About Banks

Irving

Long Island Trust Company.

Tindle

15

SANTIAGO WILSON

H.

President

33

16

The Commercial and Finaricial Chronicle

(172)

November's boost in the pay¬

"

The stock market has been

refusing
to

with determination
give any great comfort to

the bullish enthusiasm of the
new

and found

year

no reason

to do otherwise this week.

In

of them

gard

many

sold.

Amerada,

not

as over¬

for instance,

only failed to join in the
swing of last year but

bullish

better

lost

even

20

than

stock

The

points.

only

is

one day's fall was the about that distance above its
roughest the list has had to 1953 close, indicating that it
endure since the September- has been well bypassed. It is
October upset ran its course noteworthy, however, t hat
about three months ago.
while Amerada has, lost its

fact,

*

*

V

December

after
new

a

the

had

list

peak. A

garded in investment circles.

Following

That

con¬

rate

achieved

last

was

Another issue that has been

siderable body of opinion

in 1946 after which it fell to
had
accumulating followers with
come, rightly or wrongly, to
$1.50 before the rebound
take this as a support level, every new decline is Westingbegan.
house Electric, beset by strike
so selling through it brought
troubles for long that have
on a bit of further
Curtis Publishing was in
liquidation.
It was a somewhat arbitrary kept the issue subdued. Here
good form despite the ragged
figure, however, since the in¬ again, this stock was a new markets. A good bit of the at¬
commitment of Lehman Corp.
dustrial average had dipped
tention was paid to the issue
to nearly 440 in the October during the final quarter of
revolving around its paper
last year. Westinghouse was
fiasco.
mills and large woodland
also lower by 20 points at the
holdings, and the possibility
The Stalled Motors
end of last year than when
of a deal in view of the fact
Motors continued their the year dawned, so that it.
that
newsprint particularly
downhill flutter and the fits neatly into the needs of
and
paper
generally is in
words of caution from Henry that school of thought that
short supply. The stock held
Ford that enthusiasm over his still wants quality issues but
in a tight range of less than
not
at
their
all-time' peak
own stock was somewhat ex¬
four points all year and has
cessive
wasn't
much
of
a
prices. Chrysler was in simi¬ been
hovering around the low
prop to the auto issues gen-' lar demand when its troubles
recently.
had carried it into the 50s
erally. General Motors dipped
into new low ground for a from where it subsequently Another Issue Coming to Life

specific dour note. But none
of it apparently cut into the
large demand for the Ford

to

rebounded

Another issue that had had

100

the

across

little

line.

life

market

all of last year

Bargain Hunters' Favorite

stock to be offered next week.

Carrier Corp.,

long laggard

five

in

poinU range

and

spent

less-thanis Collins &

Aikman which has started off

which

been

half of the
second half
a

period

yearend
have been

as

about

which

tories

the

and

margins.

economic forecasts
jumped
definitely cautious.
than

Oils

were

also

that built

summer

but for the
well, which is

year

a

narrowed

Carrier
over

700%

decade

stock

profit

sales

and

in

mon

less

so

rare

back but
that sells at

years
now,

around its current asset value.
Total

equity

BEVERLY

share

per

is

"With

—

coming
own

An

Improving Steel Stock

A

situation

steel

where

assured

which

(A) Canvas Bound Chronicles from
end

of 1953 available in N. Y.

some

1926

to

the

84

bound

volumes

of

the Bank & Quotation

the

Chronicle

N

ran

of

a

into

its

ti

trouble

operations

Steel
with

and

including

Record, covering the

years

earnings would indicate that
the per-share figure will

probably be boosted by better
50%, which is given ad¬

than

ditional credence




1

most of last year
straightening the situation
out. Estimates of last year's

1908-1928 inclusive.

Phone REctor 2-9570

o n a

spent

C.

also

(B)

is

.Edwin L. Beck

c/o Chronicle, 25 Park PL N. Y. 7

that

the

by the fact

dividend

rate

raised late last year.

has been

a

definite

was

National

laggard in

rights to

sion

public

and

of

acceptance

adult investment classes under the

sponsorship

member firms of

of

the New York Stock Exchange.
"As

share

a

result

a

broad

these

of

shareowner-

ship

Mr. Bache said.

industry,

they

programs,

as

under¬

stand

what

really
the

number of

curities

share

be

to
to

around

buying

one

shares

hundred

one

in

any

ex¬

climb

or

of our thousands of industrial
enterprises.
People are learning
more about that right all the time
—because morq people are getting

States

pected

political system, and

it may be exercised by

the

United
can

herent in our

se¬

hold¬

in

ers

He went on: "The

right of private ownership is in¬

means,

12,-

what

understand

to

shareowner-

0 0

0,0 0 0 by
Harold L. Bache
I960," Harold
L. Bache, Senior Partner of Bache

ship really means. After all, when
you are buying a share of Ameri¬
can
industry, you are buying a

& Co., a

share

leading investment firm,
predicted today.
"This would mean a net addi¬

people
to
the
shareowning
population
within the next four to five years,"
Mr. Bache said.
"Of course," he
tion of

went on,

"this would represent a
gain but I believe,

tremendous

that when
up,

seem

first

lined

are

12,000,000 does not
large as it does at

quite so
glance."

official

the

firm's

his

of

opening
Coast

West

new

office,

which occupies the entire ground
floor

the

of

Bank

at

annex

N.

445

Drive in Beverly Hills.

Bache's

branch

new

latest

and

ment

and

efficient

most

facilities

as

equip¬

to

entire

the

offers

California,

Southern
the

National

City

new

building

Roxbury

provide

wide investment

today but for tomorrow,

of

as

well*

must increase," he
well be that the

may

capital

increase

at

will

consumption

rate that will make

a

Bache pointed to
employee stock
purchase plans. "The owners of
American Telephone & Telegraph
Company, for example, number
more
than
1,300,000 people, of

the

Mr.

of

growth

which about 500,000 are employees

These employees

showing their faith in the fu¬

are

ture

growth of the company and

their feelings that thev will share
rewards

in

the

by

putting

income to

of

that

growth,

aside a part of their
participate in the com¬

pany's future," he declared.
"A gigantic task confronts us,
the task of telling the public the
facts

about

shareownership," Mr.
"This job cannot be

overnight,

it

but

must be done no matter how long

it takes, as we

inevitably the rate of capital
"It

involves."

accomplished

centers.

which

public's attitude toward in¬

vestment,

with fast,

West Coast,

consumption

in the

the

all
—

illustration of the change

an

Bache stated.

"Industry is requiring increas¬
ingly larger amounts of capital in
order to satisfy the nation's needs
and its luxuries," Mr. Bache said.
"This spending is
not only for
and

As

as

well

accurate market information from
world

that purchase

and

risks

the

and

—

of the company.

Bache made the prediction

Mr.
at

the facts

all

total of

a

future

the

in

rewards

than 4,000,000

more

simply do not have

other choice,"

anv

"Ours is not
it

and
der

be—unless

will

never

form

some

he asserted.

static economy—

a

of

mass

un¬

hvpnosis

try to will ourselves into stag¬
nation," he averred. "By pulling

we

together in the raising of an esti¬
mated total caoital requirement of
than

more

billion

$500

the

over

next

decade, it is conceivable that
the most recent figure of 7,500,000

owning securities, as esti¬
by the New York Stock
Exchange, could soar to the 12,000.000 mark by 1960," Mr. Bache

present estimates look highly con¬

persons

servative." he

mated

Bache

Mr.

asserted.

reported< that

even

today there is a shortage of ven¬
ture capital and this shortage may
become

even

future.

earnings improvement seems

increasing

American

rate

tween 20 and 24 ever since.

-

in

inherent

their

people

the American people
are
learning that owning a part
of American industry is not one
of the prerogatives of a wealthy
class
of privileged
individuals,"

of

market

price. The stock last

American

realize

to

added.

that paid a dividend in 1950 and
new its peak price has been be¬

"FOR SALE"

The

ules.

HILLS, Cal., Jan. 9

the

numbers

somewhere around double the

put on a
along with the market even
though a host of followers re¬ $2.40 dividend basis after last
was

few

a

rather

have

earnings

dragged improved sufficiently
the

inven¬

up

or more years un¬

the

even

■

•

a

generally marketwise, was also among the new year well both be¬
selling at better the bargain hunters' favorites, cause of the interest being
yields than the other quality
paid the relatively inactive
particularly since it has issues of last
issues, were swept along on
year as well as
the downdrift despite the fact rounded out its product line because
of
merger
rumors
that the mills are humming to with a heating division. Most
centering on it. Bolstering the
the tune of new output rec¬ of the air
conditioning firms issue are expectations of a
ords. Also
ignored are the weren't among last year's pet good earnings
rebound to
solid black ink after a couple
many forecasts that they will
stocks, largely because of
have all
the business' they
of red-ink years. It is one of
want not only for the first price troubles during the those
issues, somewhat com¬
Steels,

have

^

"J*

5,„V'

•''

der

.

Ownership

long-time standing as the
No. 1 holding of the invest¬
One;,'line of questionable
ment companies, Lehman tunes has enabled a return to
validity was pierced in the
process, the 477 level that was Corp. is clinging resolutely to the $3.50 dividend rate that
the bottom
pf the trading its large bundle.
prevailed from 1941 to 1944
when the road was highly re¬
range through November and
A Stock With a New
tried for

time two, three

some

now.

*

STREETE

By WALLACE

for

present sched¬
periods when airMost of the market letters
Aircrafts, despite their crafts were popular for other
have been wary of the rails, rather sour initial perform¬ than their defense work are
having long since tired of ance to start off the year,
decidedly rare in stock mar¬
culling out promising situa¬ have enough followers to
ket history.
tions only to have the laggard keep
them rather buoyant,
rail market exhaust their pa¬ particularly those companies
|The views expressed in this
tience. But occasionally some that will benefit directly by article do not necessarily at any
attention is paid to Chesa¬ the large-scale switch to com- time coincide with those of the
peake & Ohio which is some¬ mercial jet transportation. "Chronicle" They are presented
thing of a former blue chip This swing will be a prop for as those of the author only.]
currently in the doldrums.
The 6V2% yield offered by
Bache Predicts Increased Slock
the issue in a year when it- re¬
ports the highest earnings in
Expects shareholding population to increase approximately 4
million by 1960. Urges all people to help meet the b-AmerJous
history makes it something of
a
market wonder. The im¬
need for venture capital estimated as more than $500 billion
ft %
'
in the next decade.
provement in the road's for-,
ment.

THE MARKET... AND YOU

the steel group

Thursday, January 12, 1956

...

"We

dustry

must

acute

more

the

in

securities

fully recognize

in¬
our

responsibility — the responsibility
of creating investment opportuni¬

ties, the responsibility of channel¬
ing the sayings of more peoole
into production, the responsibility
of encouraging intelligent invest¬
ment," he declared.
these

"In

"California
in

leaders

public

the

efforts,"
has

been

getting

he

stated,

the
the

among

across

to

importance of invest¬

ment for the individual and to the

nation."
cational

He then cited

projects

America Week,"
ation

between

as

such

edu¬

"Invest

in

the close cooper¬

West

Coast

,

.

Chicago Investm't Women
To Hear Address
CHICAGO,
man,
ern

the rapid expan¬

111.—N.

Hall

Lay¬

Vice-President of the North¬

Trust

the

Company, will address

members

Women

of

meeting

of

the

Chicago at

Jan.

18

to

Investment
a

be

luncheon
held

at

Stouffer's Madison Street Restau¬

The subject of his talk will

rant.

be "Commodity

Financing in Chi¬

cago."
Kenneth

Mrs.

nois

stock

exchanges and local and national

industries, and

concluded.

the

*n

President
side.

A.

Agricultural

i

.

of

the

Kitchen,

Illi¬

Association,

group,

will

pre¬

Volume 183

Number 5498... The Commercial and Financial Chronicle

THE EDITOR:

LETTER TO

(173)

that

Frederick

Burgess

G. Shull,

"Pnrtriitn

o

"Portraits of former SecreFederationVin Chicagoron taries of the Treasury" that adorn
Dec. 14, 1955—as reported in your the walls of Mr. Burgess' office—
iccno
99
issue nf Dec. 22, 105*
of nop
Mr. W.. ?t requires a sound-money policy
requires a
1955
-•

v/x-t-AwV*

—

Burgess, Un¬
the

not had

Treas¬

us

ury,

in

fort

to

that

this

tion

is

ef¬

an

sound

na¬
a

mone¬

tary basis, inu 1 g e d
i n

c u

i

p y

high

a

Frederick G. Shull

Depart¬
United

cf the

examine

gold

longer

redeemable
and

has

took
1933!

Daniel

of

silver"

than

a

ly practiced by this nation, with 1904, page 190).
minor evrentions frnm 1Q79. riahf
^inor ®xc®P^on?» ff9rr}_1972 right - Since we have
.

making the dollar the best
in the

—

not had

piuui

works

of th^ New Deal, and getting the
American dollar restored to a

Theodore
sented

basis of integrity!

tion:

might

not

be

amiss

to

throw in, here, what another great
American had to say as to what
constitutes

"honest

currency."

long

lar approved

ciples established by Washington
and Hamilton, restore
our cur¬

u

1_

means of correcting the dishonesty

it

of

some

Let's

States.

Mr.

Burgess'

money
Truer words were

spoken! >But, today, we are
way from the type of dolby Washington and
Hamilton.
And to
say
that we
a

class.
And
have moved

"hon-

an

Vi

In

an addressi at Logansport, Indiana,
on Sept. 23, 1903, President Theo-

of

Daniel

herein—I

Is

the

by
the

And

pre-

said

tnis

ques-

tion, or is it not, going to restore
the American dollar to a basis of
honesty, with its value firmly
fixed at $35 a fine ounce of gold,

and the privilege of redeemability,
demand restored?

George Washington once

as

(as quoted in the final para¬
graph of Mr. Burgess' speech):

Administra-

present

shall thereby have

we

rendered a service not only to
ourselves but to the entire world.

just

raise

specie-backed

sound,

a

basis, and

and

Webster

Roosevelt,

to

rency

WillUAl

Secretary Humphrey, and Under- premise is clearly established
Secretary Burgess as the best the quoted statements from

And

world."

never

dow^ to 1933, is highly recom- est currency" since the New Deal
VV/V/XX over in 1933—proof of which
fended to President Eisenhower, took V/ V ill ± ouu
_T

"If, to please the people, we of¬
fer what
how
our

we

can

_

to" which"
repair.

in£ Sound Money principles:

ourselves disapprove,
afterwards

we

work?

dore Roosevelt voiced the follow- to that question is of far greater

Let

us

raise

a

true gold standard

a

"An

honest

in 1879; and Andrew W.
Mellon,
mi_
who, in his "Taxation: The Peo¬
ple's Business"
(published in

strongest

credit,

of

his

government

to

the

Gold

Standard

But

since

the

symbol

and

of honest business life.
ness

world

and

exist

must

to

credit,

The

wile "and" honest

the

expression
The busi-

largely on
confidence

.peo-

Ple than whether Ike can, will,
won't, be a candidate in 1956.

or

Getting back to Mr. Burgess'
talk
to
the
farmers, he said:
"These
policies
of
Alexander

The event is in the hands

FREDERICK
2009

G.

SHULL

Chapel Street,

New Haven

Dec. 29,

15, Conn.,

1955.
S

unimpaired."

three

named

were

also strong advocates of Sound
Money, one wonders why Mr. BurSess doesn't emulate their financial

hymn,

old

ceeds

family,

a

"A

follows:

as

has

nation, like
built on a

be

to

sound foundation

the

It includes

quahties'

moral

of

integrity

diligenceand^understanding But
sound found"tion a^ re^iuk'es
a

economic

solvency.

It

the

is

policies,

rather

than

that
that

see
see
see

countrv
country

our
our

is
is

Those

are
excellent principles,
they have not been put into
practice by the Treasury of the

but

United States since the New Deal
took

the Gold

off

us

1933;
will

the

and

continue

to

lack

foundation'', until it
stored

to

money,

shall

"sound

a

is

again

other token

redeemable

be

dollar

basis whereby

a

or

Standard in

American

re-

paper

currency,

in

gold,

on

h

thls

natl0n

new

had

r?=h both gold fd
s'}vfF- c|[ter Gtass. ai3 co-author
'

thor°ughly
tot in that
Reserve

all Federal

a

man>

and Ogden Mills, both

Mr.

Burgess
these

ditions

does

leaders

the

that

have

shaped

course

let's

de-

tra-

the

have the Declaration of

that

debt

now

billion;

and

national

Our

respect:

in

stand

$280

approximates

here is what Senator Byrd had to
say

that

on

which

in

address

an

delivered

he

Chamber

score,

before

Commerce

of

of

our

as

surely

ton,

nor

by

great

the

Department,

in

can we

<

to

be

built

and

liabilities

on

sound

a

that

its

exceed

founda¬

family

a

whose
is

assets,

insolvent.
Mr. Burgess says
must

strengthen

our

that

are

it

noble

nation's

the

step

"courageous

tablish

confidence

.

in

.

the

But,

such

that

source."

sentiments;

to

thankfulness "for the

high

respect for

predecessor,

but

implement them requires a lot
more
than mere
expressions of

why
.

doesn't
-

,

„

with
great
Mr.
.

u
r a return to
fhe Gold Standard, instead of con-

g

great tradi- tinuing to try to make




the

basic

the

are

major problems that

factors underlying the

course

of business

are

in 1956?

line of activity faces

your

,?h-;f.-S;V.!;'

.

3—What do you

think will happen to prices and values of securities

in 1956?

'v.V-'.

.

4—What impact will the Administration's and Congress'
cies and domestic program
;

You will find the

have

answers

on

foreign poli¬

business conditions in 1956?

to these

questions and

many

others in the "Annual Review & Outlook" number of

The
of

Chronicle
the

★ Do not miss the
Bank in this
ness

featuring

the opinions

and

forecasts

country's foremost Management Executives.

opportunity to advertise

your

Firm, Corporation

or

composite cross-section of America's most competent busi¬

and financial opinion

which will

appear

in the January 19 issue.

Regular advertising rates will prevail
for space

in this number

Very

much to be admired.

the

2—What

new

integrity," is

...

at

the outlook for business in their respective fields.

in 1956?

.

Government's

foundations.

1—What

credit," and
to es¬

and

cure

Those

lishing

Gov-

seek

to

AU that Mr. Burgess says about
bold plan for estab¬

our

diagnose the trouble and

on

★ Get your business perspective on this year's possibilities from the
banking and corporation leaders who manage the country's industries.

.

"examine

We must

financial leaders

"Hamilton's

his

ernment

"ANNUAL REVIEW & OUTLOOK" number

our

the opinions and forecasts of the nation's banking and

the Treasury

justify "irreUnited States, in Washington, on deemable" paper money, such as
May 4, 1955: "Our debt is equiva- we have been using for the past
lent to the full value of all the 22 years—and still with us; and
buildings, all the mines, all the it's an insult to Alexander Hamilmachinery,
all
the
livestock— ton, John Sherman, Carter Glass,
everything of tangible value in Andrew Mellon, Ogden Mills, and
the United States." If that repre- the rest,' to try to connect
our
sents a true picture of "solvency," present-day type of paper money
how much deeper in debt can tne \ylth
apy- "financial
traditions"
United States go before being re- originated and practiced by those",
garded as insolvent? In answering great leaders. 'For those leaders
that question we should keep in believed that paper money
can,
mind Mr. Burgess' correct premise and should, be maintained as good
that "A nation, like a family, has as gold!
tion";

present

followed by his

any

successors

★ The 1956 issue of
will

January 19th

as

Independence and the Constitution."
But,
under
no
"financial
traditions"
established by Alexander Hamil-

the

of

history

Will Be Published

was

we

financial

great

which

"It

say:

S CHRONIC

Under-

as

Secretary and later Secretary of
the Treasury, was a Gold-Standard
man
operating in a GoldStandard Administration. Again I
say,
Why doesn't Mr. Burgess
"emulate" these great Secretaries
of the Treasury, instead of merely
being thrilled by their portraits?

also requires economic solvency,"
we

Number of

made "redeemable" in gold;

were

under

how

"ANNUAL REVIEW & OUTLOOK"

Notes

was

veloped

see

The 1956

£ .?
Gold-

1913'

standard

demand, at the face value of the
since "a sound foundation

compara-

tively little ^old' by insistin§ tnat
the newly created dollar be

currency.

And

DON'T MISS IT!

5?!?* tjW3S
^ i^o?13^38
he could possibly be in 1792, when

setup,

to
to

ury

confining

ft£JT?.,.r'nr.
th.?A
sf
eir p0r"

special responsibility of the Treassolvent.

can

answer

importance to the American

;

the

is

currency

on

"maintain

tutes Sound Monev.

Choosing the grand

defend

Standard

of God."

1875," which restored

statements—step by step—and see
whether they conform with the
facts as to what actually consti-

"How Firm A Foundation," as the
title of his talk, Mr. Burgess pro-

was

laid for

were

somewhat higher up the scale of have "the
best
money
in the
they also learn that world" is no high compliment; for
anything in the nature of a de- hardly a nation in the world, tobased
currency
works
similar day, is on a Sound Money basis,
damage.; A permanent system of But we, with our nearly 22,000
assured honesty is the first essen- tons of
gold, could easily be on a
tial." (Ref.: Roosevelt's State Pa- Sound Money basis. All we need
pers, Vol. 1,"Review of Reviews," to do is to
get back to the prin¬

"miser-

a

-

civilization,

such

demand

on

is

to the debtors as
when communities

The result

that the foundations

tion of debts is in the end ruinous

the

so
strongly
urged
by
Webster, and so consistent-

1924), declared it to be the policy

Treas¬

ment

is

«>1™

station

ury

moment

not

the doller to

so

the

in

will

and

tion Act of

oc-

n g

United
Reserve

since the New Deal

least

the

ignorant
communities are

mentioned, is John
Sherman, author of the "Resump-

platitudes
hardly worthy
one

the

off the Gold Standard in

at

d

of

of

Federal

Getting back to the "portraits,"
those named by Mr.
Burgess as
adorning his walls are "Alexander
Hamilton, Carter Glass,
and
Ogden Mills." Among the missing;

prove

on

the

System, and which this nation

der-Secretary
of

Treasury
and

at

Very

primitive
continually obliged to learn the elementary truth that the repudia-

dition,"

Addressing the American Farm

the

silver

great difficulties.

prosperity.

specie

a

able, abominable, and fraudulent
policy." This bit of "financial tra-

Bureau

States

on

basis; that all bank notes, to be
safe, must be convertible into gold

in

tions of this nation"; more than
the mere calling to attention of

by

circulate

paper

espousal of the gold standard.

Randolph

to

single

Webster, and Theodore Roosevelt to Under-Secretary of
Treasury Burgess' list of Alexander Hamilton, Carter Glass
and Ogden Mills, and suggests they be emulated by similar

~

ought

Hamilton, supported by the great
force of George Washington, were adopted by a reluctant
Congress and carried out under

moral

purpose, if fraught with the suspicion of dishonesty, in result is
fatal in its effects on business

120

ago.
Addressing the U. S.
Senate, in 1834, Webster said: "I
know,
indeed,
that
all
paper

and

please the people by offering what we ourselves dis¬
Adds John Sherman, Andrew W. Mellon, Daniel

tho

than

more

Any tampering with

the currency, no matter with what

holder"; and he went on to say
that, "any attempt to give value
to any paper of any
bank, one

approve.

Editor, Commercial and Financial
Chronicle:

is essential.

is
Daniel Webster had

press paper money

answer

years

New Haven monetary economist, writes
"Chronicle" advocating the practice of Washington's advice:
not to

money?

the correct

Asks Emulation of Former
Treasurers Cited by

printing

real

17

us

believe

THE

COMMERCIAL AND
25 Park

FINANCIAL CHRONICLE

Place, New York City 7, N. Y.

V

18

The Cofhmercial and Financial Chronicle..

(174)

.Thursday, January 12, 1956

the writeoff of the unamortized
premium

fied reactor in

funded

it

possible

to

utilize

item.

recur

Railroad Securities

is

on the bond issues re¬
by the 1954 refinancing, and this is probably a never-to-

The road's tax deferral due to accelerated amortization

relatively small matter.

a

tine

McKEEVER

By GERALD D.

Continued

=

jrom

10

page

for

the

Southern Ry.

Although the payment of an extra of 50 cents per share in the
increase in dividend
is still classed as a

final quarter of last year has effected another
of Kansas City Southern common, this issue

of

less

than

two

days,

"rich man's" investment. At the current market price of about 77,
the indicated yield of the total $3.50 payment for 1955 is only

and Kansas City Southern

therefore has greater
appeal for those who are more interested in capital gains potential
tnan at the best rate of return currently.
4%%

common

The capital gains aspects

what
it is

of Kansas City Southern are some¬
ordinarily the case. In the first place,
territory that en¬

evident t.ian is

more

of t;.e leading growth rails, serving a

one

a surge of industrialization by the location there of numer¬
plants identified with tne war and defense effort and the

joyed
ous

expansion of others already located there.

With the ending of the
problem of keeping these new low cost plants
busy, notably in t.i'e oil, chemical, sulphur and synthetic rubber
there

war

was

no

fields, and the territory has continued to thrive.
Manufacturers and miscellaneous traffic represented the high

proportion of 65 % of 1954 freight. revenues, and being
of industrial

the level

with

output,

closely

so

of the Kansas City

revenues

Southern Lines—that is, the Kansas City Southern proper and its

wholly-owned Louisiana & Arkansas—reacted to the 1954 letdown
a little more than the ayerfge, either for Class I or for the South¬
western district. Nevertheless, the showing for Kansas City South¬
Lines

ern

table of

still way

was

revenue

in front

out

indices based

as

shown by the following

the 1947-49 average as 100:

on

Kansas City So.*

So'west Dist.

116

105

104

1953

137

120

129

121

extreme

118

♦Kansas

Based

the

on

estimate

of

a

to what

probably

carbonaceous

jected to

pheres,
per

&

Arkansas

taken

which

from

dividends

no

t

since

of latent value is in the Louisiana
Kansas

The

1918.

Kansas

City Southern has
City Southern owns

the entire

outstanding amount of the three classes of stock of the

Louisiana

&

namely 60,000 shares of 6% cumulative
prior preferred, 40,000 shares of non-cumulative 6% preferred and
Arkansas,

160,000 shares of
cumulation

of

common,

$1,260,000

there is an unpaid dividend ac¬
the 6% prior preferred which is of

and

on

$50 par value.
Consolidation could ultimately be the means of

matter

about
inch.

or

sub¬

was

54,000 atmo-

800,000

pounds

industry.

It has been apparent for

time, however, that the re¬
serves of fossil fuels—gas, oil, and
coal
are
inadequate and that
—

power

serve

the

could

clear

would

boom

a

make

available

to

industry.

industrial

to

It

diamonds

virtually

all

manu¬

facturers for faster speeds, greater

and improved appear¬
of certain tooled items.

accuracy,
ance

Important developments also are
occurring in the field of ceramic

At

coatings.

Armour

make

it

Solution

Research

easier

to

can

is

apply

in

the

ce¬

cnemical

a

be app.ied to any

solid surface heated to
dred

few hun¬

a

degrees Fahrenheit.

These

coatings are highly re¬
heat, can be stamped

to

when applied to sheet
resistant

to

of

metals,
attack,

chemical

this

cf

to

world

the

bleak

attention

has

outlook,
di¬

been

rected at the development of nu¬

plants

power

considered

—

by many to be the answer to our
fuel needs. It is easy to under¬
stand
the
importance of
such
plants when you realize that one
pound of uranium fuel is equal to
1,300 tons of coal in energy value,
gives
as
much
power
as

and

270,000 gallons of gasoline
or
2,500,000 kwh. of electricity. And
we

release

control the energy

can

of

costs will

the

H-bomb,

fuel

the

practically zero and
the supply almost unlimited.
clear

estimated

plants

power

that

will

nu¬

account

for from 10 to 20%

of the electric

capacity

between

installed

19r/0.

and

I960

.

As production costs

go

down, nucle ar plants can be ex¬
pected to take an increasing share
cf the power generation market.
Nuclear

are

itself,

energy,

include

uses

insulation

of

former laminates, offset
and insulation for wire.

trans¬

printing,

As

thereby

procurement

from

laboratories

rapidly

to

illustration, I would

just

mention

anotner

largely untapped source of ener¬
gy—sunlight. The size of this re¬
serve
is tremendous.
This is in¬
dicated by the fact that the amount

of

solar
energy
reaching
the
earth's surface each year is
32,000
greater than all energy produced

by otner means today.
The principal problem

in the
utilization of solar energy is how
to

collect

and

store

But progress is

Laboratories,

the

energy.

being made.

as

you

Bell

know,

may

recently announced a solar bat¬
tery which converts sunlight into
electricity. Solar energy also is
being used to heat to high tem¬
peratures certain materials whose
contamination must be prevented.
I

see

no

reason
why continued re¬
eventually cannot succeed
harnessing the sun in other
respects.

search
in

.

I

have

to give

tried

in

this

brief

talk

over-all picture of the

an

role and

importance of technology
I hope I have
succeeded, for the challenge is
in

our

economy.

great.

Much

plished,
for

those

has

been

accom¬

much

but

more

remains

who

adventureous

are

enough to accept the challenge.

Federal Oil Common

is

becoming America's biggest in¬
be applied inexpensively, are ex¬ dustry. It has grown from a $6,003
tremely thin, and are not brittle government appropriation in 1913
like porcelain
enamel.
Possible to a $12 billion giant—surpassing
can

last

a

like

be

It has been

Ceramics

material

limited

too

needs

Because

Foundation, for example, we have
developed two unique processes when
which

is

beyond the next 25 to 50 years.
increased

be

to

seme

water

government

As

and

warm

rou¬

impractical.

turn the wheels of commerce and

development of an inex¬
pensive way to produce artificial
diamonds, I'm sure you agree,

ramic

$74 million for the combined

parent

e

occurs

pressure

square

sistant
source

a

solution and

$10.5 billion.

potential

material, similar

to keep him

power

The1

Class ! index moves up to only 113 based on estimated revenues of
Tne larger

carbon

tempera¬

when na¬
ture's forces mold diamonds. The

In

the index jumps back to the 1952 level of 129, but the

revenues,

and

pressures

applied

"Flame Spray Ceramics."

City Southern and Louisiana & Arkansas combined.

1955

Electric

tures to

119

1952

General

ceramic coatings. One is known as
"Solution Ceramics"; tne other as

Class I

1954
V

monds,

Challenge of Technology

their

distant

The

a

time.

know, about two-thirds
radioisotopes have half-lives

making

Kansas City

industry

on

first

may

of all
=

Midwest

radioisotopes

basis

you

Chicago will make

for

the steel and automobile in¬

even

dustries. More than 800
now

companies

using atomic energy by¬

are

Stock at $3

Share

a

Public

offering of 99,900 shares
of Federal Oil
Company common
stock was made
yesterday (Jan.
11) by S. D. Fuller & Co.
The
stock is priced at $3
per share.

Flame Spray Ceramics coatings
differ from Solution Ceramics and

products in

full flow-through of Louisiana & Arkansas earnings, but tnis pos¬

similar

plant is the "nuclear reactor"—a

and

sibility is beclouded for the present because all of the L&A stock

not require tne heating
of sur¬
faces, and are applied by the feed¬
ing of powdered ceramic materials
through a simple flame gun.

device

tor, will apply the proceeds of the

obtaining the

is pledged as collateral as part of the security of the $50 million
Kansas City Southern first 3X/4S, the only bond issue of the system.
In the

meantime, however, trie restoration of dividends

on

the two

Louisiana & Arkansas preferred stocks, together with the payment
of the arrears on the prior preferred and the establishment of an

appropriate dividend on the L&A

common, could be the basis of
a
dividend rate on Kansas (pity Southern common more in line
with combined earnings estimated at $11 per share on Kansas City
Southern

for 1955, of which the parent road contributed

just about half.
The Louisiana & Arkansas is proving

to be the tail wagging

the dog as far as growth and productivity are concerned. While
the Kansas City Southern proper, extending some 790 miles from

because

esses

branch extends from Shreveport to Farmersville,
Tex., at the Dallas gateway. The exceptional growth factor of the
a

Louisiana & Arkansas is shown by the following table of indices
which also is based on the 1947-49 average as 100:
REVENUES
Lines (J)

TON

KC Sa. (2) L&A

Lines

(I)

MILES

105

135

137

123

162

103

1952

129

122

140

105

1951

119

113

129

103

101

106

101

113

96

90

108

1946

the

through

thowed

39%

1954,

various payments

from

not

increase

whereas

1931

tnrough

sumed until 1946 and
were

84
93

resumed

in

98

were

1945,

1948.

on

Kansas

regular

is

type that Armour Re¬

toward the purchase price of

sale

Economy
after

the

Service,
will

oil

were

in

classified

mately

business

drop of

re¬

dividends suspended beginning 1932
The effect of having plowed back

more




uses

as

pro¬

tecting metals against high tem¬
perature erosion in rocket nozzels
and

abrasion

applications

impellers

housings

nuclear

and

and in fan blades and turbines,
i"

radically

a

technique for rapid drying of
and
paints; which has
been developed at the Founda¬
tion. The process is cailed "ChemDry," and is capable of shortening
the drying time on coated prod¬

new

coatings

from

24

seconds.

hours

There

to

from

also

is

2

a

largely dependent
a

reactor

many

research tool.

a

as

has

A

reactor, for example, re¬

cently made it possible for Foun¬

While discussing coatings, I
like to mention

in¬

to

industrial output,
City Southern is more

upon

matter of the maintenance

of

generally.! The 1954 letdown, for instance,
15% in the combined Kansas City Lines

over

in

Counties

to

con¬

scientists

dation

—

working with

the

University of Illinois Medical
School—to develop a new tech¬
nique which will be of assistance
muscular

in

One

saving

in

floor

space.

the

Essex

of New

area

of

dystrophy

the

in

that

would be

it

experimental| Chem-Dry in¬
than'

area

originally

re¬

quired.
The Chem-Dry process is par¬
ticularly adaptable to protective
coatings of inks, paints, and var¬
nishes.

It

is

based

on

a

chemical

understanding the

helpful in
of

causes

mus¬

could

reaction between the applied coat¬

thereby

ings and sulfur

potassium in the tis¬

be

measured

and

ana¬

ments.

dichloride

vapor

instead of the slower polymeriza¬
tion or oxidation process.

The

limiting

such

Foundation

measure¬

was

asked

to

develop a more suitable measureBy combining improved quality jment technique.
As a result, a
cost, Chem-Dry of¬ neutron activation technique was
substantial

ings

for

those

printing,

wood

production sav¬
in the fields of

finishing,

paper

coating, metal decorat¬
ing, and wire coating.

proposed which will make it pos¬
sible to remove only one-thou¬
sandth
of
the
tissue
formerly
needed,

Of

all the products of research
development none offers a
greater potential than the • un¬
leashing of new sources of energy.
and

The

two

most

energy

sources

and the

promising
the

new

nucleus

sun.

upon

which

man has depended
fossil fuel and water

will

permit

One of the most

important

uses

of

the

of

of

motor

oil

ments) which

the

is

tracer

studies,

numerous

other

ways.

The

of

a

declassi¬

to

gasoline

and

service

numerous

large industrial

con¬

company's present fuel oil

increased ten-fold,
docking facilities
will be acquired through Feder¬
al's purchase of the net assets and
age

capacity

and

tidewater

of Economy Service.

property

the

For

nine

ended

months

Federal
sales cf $2,025,820
income of $35,245.
20,

Sept.

reported
and net

1955,

net

New S. F. Exch. Member
SAN

FRANCISCO,

election

of

William

V.

Calif—The
Farrell to

membership in the San Francisco
Stock

Exchange

was

announced

by Ronald E. Kaehler, Exchange
President.
Mr. Farrell is

of

a

general partner

Irving Lundborg & Co.
Irving

been
for

Lundborg

members

a

Otto,

number

of

a

&
the

of

general

a

firm, is also

*

Co.

have

Exchange
George

years.

partner

of

the

member of the Ex¬

change.

R.

H.

Davider Opens

(Special to The Financial Chronicle)

CLEVELAND, Ohio—Robert H.
is engaging in a securi¬

Davider
ties

business

Union

availability

in¬

business will be doubled, its stor¬

can

determinations,

sole

also

sumers.

production

be used in wear
and friction studies, trace element

is

AMOCO

stations and

radioisotopes (radioactive ele¬

reactor

sterilization, and

For centuries

largely

are

and

weekly measurements.

it

and

bution

witn reduced

fers

3,000

Counties

dystrophy if the amount of
and

approxi¬
gallons of fuel
homes and business

dependent licensee in Essex
County for the wholesale distri¬

cases.

involved

factors

dystrophy is an imbal¬
ance of scdium
and potassium in
the muscle tissue. Specialists be¬

cular

to

sells

now

10,000,000

establishments in Essex and Union

The

muscular

lieve

Federal

.

nuclear

The

against erosion and

pump

available

and

oil

dustry.

and fabric

so

little less for the Kansas City Southern proper, and a
for the Louisiana & Arkansas, but net income was
fairly well sustained, partly due to tax credits. The greater part
of the latter, amounting to about $1 per
share, was occasioned by
revenues, a

such

lyzed periodically.
Until now, it has been necessary
to remove a gram of the muscle
tissue to make the analysis. This
causes
extreme pain and quite a
drain on the persons' resources,

not

distributor

Union

and

sue

pre¬

Service, Inc.
Federal,
acquisition of Economy
in early January,
the
largest independent

Inc.,

be

fuel

search Foundation is installing in

occupies approximately 200% less

City Southern

dividends

the outlook for 1956 earnings of the Kansas

little

be

floor

being at the low end and maintenance cost ratios have

of

It

sodium

freight traffic density from
Kansas City Southern proper

than for most southwestern roads

a

to

tools.

stallation at Acme Steel Company

its

the

common

until

With its fortunes

level

designed

research

An

been traditionally low.

to

those

as

latter

131

is seen in the road's high state of operating
efficiency.
Between 1943 and 1954 gross ton 'miles moved per
freight train hour increased 85% and the Kansas City Southern
is one of the lowest cost operations in the rail
field, its transporta¬

the

are

and

utilized

of reactors—
used primarily for

123

>:

for 20 years or more

led

teat

power

this

two types

siderable

the greater part of its cash income into additions and betterments

tion ratio

those

rate.

123

small decline.

a

While

ferred

95

relatively greater growth of the Louisiana & Arkansas is
in

are

under¬

controlled

company, a retail fuel oil
wholesale gasoline distribu¬

Jersey.

20

121

1950

seen

re¬

There

uranium

a

The

power

Chicago for operation starting this
spring. It will be completely de¬

ucts

KC So. (2) L & A

116

The

of their greater

which

in

fission at

goes

nuclear

And they appear to be

would

This road extends southeast from Hope,
through Shreveport, Alexandria and Baton Rouge, to New

also

go

sistance to heat and their chemical

tributed 50% of 1955 net.

-

they

a

stability.

in

1953

that

These coatings are highly su¬
perior, in many instances, to those
produced by the metallizing proc¬

Kansas City, Mo., to Port Arthur, Tex., produces about 60% of the
combined
revenues
of the
system, the 750-mile Louisiana &
Arkansas producing the lesser share of revenues nevertheless con¬

1954

in

of

effective

common

Ark.,
Orleans, and

coatings

1,100 plants.

some

heart

The

the

from

Commerce

name

offices

in

the

Building under

of R. H. Davider & Co.

Number 5498

Volume 183

The Commercial and Financial Chronicle

...

(175)

19

DentpseyTegeler
Branch in Dsnwir
DENVER, Colo.

.

of

office

new

a

by

The opening

—

in

Denver, Colo,

has

been

There Must Be

nounced

The

by

with

F.

is

Tegeler,senior
investment

The

se¬

medical

about

a

and

why

-manage ment

Ryan.

business

since

1926,

has

and

re¬

cently been with Peters, Writer &

Christensen, Inc.
office brings to 18 the

new

number

offices

of

operated

Dempsey-Tegeler &
cities.

Company in

•

,

by

;

.the

New

Midwest

York,
and

Los

American

Stock

Exchanges.

he

failure?

would

much

if

we

histories

case

went

thought

How

of

be

and the

wrong

might learn

more

we

shouldn't do

that

used—then

about what
we

are

now

wrongfully

Broadway, New York 4. N. Y., at the

close

of

business

December 30, 1955, pub¬
in accordance with a call
made bv
Superintendent of Banks pursuant to

almost

to

human

every

activity that requires

degree of

a

skill.

do

some

succeed

men

others

fail

Why do some

men

where

salesmen?

as

work twice as
hard
as
others
yet accomplish
half as much? Why can some men
pick up a telephone and in a few
they

turned

an

reception into

have

cold

interest,

one

c.nd

ac¬

concurrence

for

customers

There
cesses

and

years

these

to

answers

are

balances

banking

securities men,
all of us in all

and

reserve

cash

in¬

Among

balances,

items

in

a

process

collection

United

$7,G42,583.48

States

Government'

obligations,

direct

Obligations

18,439,267.26
of

political

States

and

2,246,482.98

ing $1,563.66 oveidrafts)__
Banking premises owned,
furniture

none;

13,907,042.32

Real

estate

than

;Other

93,763.38

premises..

assets

161,926.55

153,378.04

__

'

TOTAL

ASSETS

$42,644,444.01

...

that

learned

deposits

viduals,

of

and

logically.

how

find

to

REASON

CENTRAL

He

he

could

series

a

of

why something should be
had

He

"ABC"

mind

form

not

learned how

never

in

anything

tried

he

before

his own
obtain

to

for

not

covered by insurance against vari¬
ous

hazards, have done just that

with

their

ability to

health.

earn

Health

:_

J Deposits

of

United

another person's agreement

fied

States

Government

297,378.47

subdivisions

cal

10,435,305.49

___

...

tions
Other

principal assets, and hence it is
becoming increasingly important
for him to insure against the risk
of ill health and accident.
It is

becoming

increasingly clear that
these disability lines are among
the most important for the aver¬
individual.

age

Without

fire

checks,

etc.)

1,308,919.02

'

TOTAL

•

V.

DEPOSITS $38,966,600.32
liabilities.........

■Other
"4

•

,

.

CAPITAL

'{:

276,927.89
■

.

TOTAL LIABILITIES

n

|

_

$39,243,528.21

he

handsome

men

coverage on his posses¬
sions, but with health and ability
to earn, he at least stands a chance

to

make

good his loss; but with¬

health

out

or
ability to
he is lost indeed.

way

There

two

are

PROS

him your

OUTWEIGH THE

$1,000,000.00

1,000,000.00
1,400,915.80

__

*

TOTAL

he

CAPITAL

never

above

rose

$3,400,915.80

acquired

TOTAL LIABILITIES AND

FOR

ACCOUNTS

institution's
stock

$42,644,444.01

capital

with

total

consists

of

value

of

par

$1,000,000.00

^Assets

pledged

other

assigned

or

„.(a)

Loans

are

of

serves

(b)

shown

as

above

after deduction

as

after

are

73,813,67
shown

reserves

of—;

I,

William

D.

above-named

-that

the

best of

my

175,422.95

Pike,

Secretary
hereby

of

institution,

above

statement

is

achieve

the

other people and
stimulate their thinking into "ac¬
lead

it was necessary for
logically about their

that

fit

what would best bene¬

them, HE ALSO FOUND OUT
HE
COULD
BRIEFLY

AND LOGICALLY

THOUGHTS

(

deduction

of

to

discovered

THAT

re¬

___.

Securities

above

of

order

ability to

needs and
$8,902,021.93

purposes

in

he

DOING

him to think

to secure liabilities and for
i)

that

tion,"

MEMORANDA

g

When

BUSINESS.

'

tThis

ordi¬

CREATE

the ability to

OPPORTUNITIES

common

very

income until he learned how
up
his sales targets. In¬
stead
of
taking
orders
which
came to
him through his friend¬
set

ships and his contacts, he finally

AC-

.COUNTS

CAPITAL

a

to

OTHERS

AND

OBTAIN AGREEMENT.

the

Positive

certify

true

TO

CONVEY HIS

Thinking Creates
Agreement

the

WILLIAM

D.

PIKE.

Correct-Attest:
CHRISTIAN

W.

KORELL1

SUMNER
JOSEPH

B.

V.

FORD

(-Directors
TAMNEYJ




Before

you

customer

will

attempt
a
think about the reasons why
benefit

from

sale
your

the

purchase. If you are attempting
trade, or a "switch," go over all

a

fit

to

important

an

degree from

the country's business boom that
is bringing more employers and

individuals
health

under

policies.

visable

that

accident

It does

and

seem

ad¬

the

investor, going
stocks, ought to
buy representation in a company

into

insurance

that

is

active

in

this

profitable

growing line.

Buck New Partner of
Putnam

Management

types

approach

sales presentation.

clear,

concise

to

sales

because

EVER

MADE

WAS

ORIGINATED

It will

also

SALE

NO

UNTIL

IT

THE

IN

MIND OF THE SELLER.

Orders

called sales, but real sales

are

that

any

It will develop

manner.

WAS

create

build

goodwill

clients

and

CREATED.

are

incapacitation, and medical
benefits and hospitalization.
With the

orderly

an

in

health

they

broadening of interest
and

visions,
is

the

This

Logical

That

(1)

Creates

Know

Selling

by

be

to

per¬

likes—his needs investment|

.

(2) Study

your

BOSTON, Mass.

Richard A.

so-called

a

is

fringe benefit. But the

also

written

purchase,

why
benefit from
reasons

will
sale, or "switch."

customer

your
a

of the
a

(4) After you are convinced the
PROS

outweigh

the

suggestions.
After you have

will

you

for

find

that

done this
the reasons

action will
logically .fall into three or four
minor reasons,
and ONE CEN¬
TRAL AND IMPORTANT ONE,
taking

and

clearly,

favorable

will

you

lead

briefly,

this

to

up

concisely.

and

Then stick to that

central and

one

consider¬

by many of the life

tion"

and

ment

for taking "ac¬
will obtain agree¬

reason
you

much

than

often

more

otherwise.

thousand life writers, and

Among

ume.

recently
of

ume

casualty

the

Arthur

Paul W. Fairchild,

in
of
and

and

Co.,

Assistant Vice-

President, First Boston Corp., will
head the Business Services and
Finance

respectively,
during the 1956 Chicago Chapter
Red
Cross
Fund
Campaign
in
March, General Chairman George
A. Poole announced today,
Sections,

Mr.

Erickson, a graduate of the
University of Wisconsin, has been
r

with Arthur Anderson and Co.

is

He

years.

Executives

member

a

Club

Economic

and

Fairchild,

with

First

head

up

who

Boston

been

has

26

solicitations

years,

be

to

1,800 banks, finance
companies,
and
brokerage real estate firms. Fairchild is a graduate of Northwest¬
ern
University. He is Secretaryinsurance

of

the

Central

States

Group of the Investment Bankers
Association

of

member

the

of

America,

Attic,

the

since

associ¬

1952.

mutual

Mr. Buck is

University,
War

II,

fund

industry

graduate of Yale
1932. Prior to World

he

a

connected

was

the Travelers Insurance

first

Salesman,

as

with

Company

and

later

as

Sales Manager.

a

Following serv¬
a
U. S. Army Officer, in
he
became
an
Assistant

as

1946,

Vice-President of The Pepsi Cola

Company specializing

Distribu¬

on

tor Relations.

accident

health

and

W. W. Hibberd Joins

by

Marine Trust Go.

$303,000,000. By 1954 writings had
to $457,000,-

The

Marine

Trust

Company of

000. When it is borne in mind that

Western New York has announced
that

contributions

riers add

the

of

life

and

car¬

considerably to this,

as

the mutuals, it is evident that

do

the line is

the

developing into
important

more

insurance

What

of

one

in

ones

it

has

perhaps

been

a

W.

Hibberd

has

Mr. Hibberd has been associated

with C. J. Devine & Co. since 1953

business.

is

William

joined its municipal securities de¬
partment in the New York office,
120 Broadway.

the

to

more

the

point so far as the stocks of com¬
panies in the line are concerned,
consistent

and

prior to

that

time

the Mercantile Trlist

with

was

Company in

St. Louis and New York.

'

-

money

maker, having developed into one
of the most profitable lines in the
industry. One would have to go
of

number

a

to

years

un¬

underwriting loss in

an

such

alty,

an

Continental Casu¬
than half of whose total
as

more

volume

is

in

accident, accident
health, hospital and medical
and group accident and health.
and

The

1955

year

saw

a

further

increase in the line, with about a
half billion
of premiums
being
written by the stock

casualty (and

fire, to the extent that these units
write the coverage)

DENVER, Colo. — Kirchner,
&
Wiesner, Inc., has

Ormsbee
been

formed

First

National

act

with

offices

Bank

participating

as

Officers

Kirchner,

to

municipal

Robert

are

President;

the

distributors

and dealers in Western
bonds.

in

Building

Fred

M.

Wies¬

Vice-President; and Jack E.

ner,

Ormsbee, Secretary and Treasurer.
All

previously with Carroll,
& Jaquith, Inc.

were

Kirchner

companies.

The Federal Trade Commission

charged a number of companies
writing accident and health in¬
surance with misleading advertis¬
ing. At this stage it seems prob¬

NATIONAL

Charles U. Bay
Charles
M.

U.

Kidder

Dec.

Bay,

&

Co.,

partner in A.
passed away

31.

a

Mid-Day,

Chicago Golf, and Bond Clubs of
Chicago.

BANK

of INDIA, LIMITED
Bankers

will
con¬

ducted within
and

been

19

the

of

Club.
Mr.

with

increased about 50%

pany

Erickson, partner
the Chicago office

Anderson

has

units,

1945 premium vol¬

as

accident and health specialist com¬

Of Red Cross Fund
of

He

tors, Inc. for the past two years
in the capacity of Executive VicePresident and has been connected

the stock companies totaled about

back

Chairmen of Sections
Donald

fund.

ated with Putnam Fund Distribu¬

and health in greater or less vol¬

cover

charge

ment

ice

It is not generally realized that
are
in this country over a

there

Putnam Fund of
balanced mutual invest¬

the

CONS, pre¬

sent your

(5)

in

—

a partner of
Management Com¬
State Street, Manager

Putnam

Boston,

many

corporations, and employers gen¬
erally, are covering employees as

as

Think

margin.
as

a large
proportion of these write accident

i

securities, know
qualifications investment-

(3)

wide

a

expected

insurance companies.

Clients

man—his

your

coverage

group accident and health

larger

is

line

Steps to

accident

taking their place among
the most rapidly
growing lines in
the casualty field. Of the two di¬
are

able volume
The

Treasurer

knowledge and belief.

be

Meanwhile, the carriers of this
line of insurance continue to bene¬

of

story.

This kind of thinking will cre¬
ate

physical

any man
to make a success in
public relations, or any field of
selling he might undertake. But

will

his

earn

general

matter

pany,
50
of The George

strikingly

with the

the

satisfactorily. Correc¬
tion of the wording in advertising
is easily achieved.

of

THE

CONS—then, and then only, give

personable,

most

that

IF

qualifications which you would
say should have been enough for

to

______

almost

about

was

the

of

likeable,

was

nary

ACCOUNTS

Capital t
Surplus fund
(Undivided profits

.

one

he
well

in¬

surance

able

worked out

The

about

not

compelling

quali¬

on

deposits (certified and

officers'

i.

575,297.47

__

talk

subject,

any

and

Deposits of banking institu¬

prospects,

could

he

Deposits of States and politi•

make calls

He would

3,931,213.06

and

among a man's

are

...

tions

a

homes, per¬
not being

cars

Buck has been made

the

WHY

would

and

against loss of income in the event

into

over

effects

coverage under accident and
health insurance: protection

the

should do something. He
could not project an idea because

to

indi¬

partnerships,

of

anyone

done.

corporations
__i__ $22,418,486.81
Time deposits of individuals,
partnerships, and corpora¬

carried

think

never

Then

wise.

one

sonal

yourself. Al¬
ways, it is what is good about this
for my customer—if it qualifies—

their

life from childhood. He

not

like?

Project
Think about your

thinking.

customer

series of failures

ever

adult

his

he

give him want he wants.

learned from his

a

was

does

wise.

retail, securities sales¬
knew. He had one

I

fault

reasons

LIABILITIES
Demand

flyer—excitement—many

t»oint—what

suc¬

Case

became

and

able

most

ONE

other

owned

banking

who had

man

fix-

and

are

the

use

tion—a

memories there is

could

tures and vaults

What *

telephone,
know
your man. Does he like formality,
a
word with a smile, a bit more
levity?
What are his interests?
Safety of principal above all else
—income—capital gains—specula¬
you

walks of life.

and who' finally

men,

subdivisions.

Loans and discounts (includ¬

;

good investment.

a

highlights, the strong reasons
expecting growth, increasing
income, a solid investment? When

failures, with
with Doctors, with

Specific
my

mistakes

and

guaranteed

issue, go over all the
why you think it should

reasons

sonal
A

other

institutions,

cluding
of

with

If you want to

who

moment think of their

new

a

these

and

ASSETS

Cash,

sell

a

years and others are always faced
with the necessity of rebuilding?

the

.

don't suggest it.
saying,
"Why

your

lished

Banking Law of the

by

applies

keep

of 50

cons,

out

should he do it?"

details—few details—come to the

tion, where another man will be
the recipient of a polite, "I'll let
you know?"
Why do some men

Company

it

is

don't out¬

doing over and over
again."
This thought has stuck
in my own mind and I think it

of

the provisions of the
Btate of New York.

what

we

CONDITION OP

Underwriters Trust

Test

"switch"

pros

for

were

otherwise
OP

weigh the

If the

the

and

minutes

REPORT

why the

reasons

good one.

you

obtain

Why

Angeles,

a

do

seldom

that

•

.

The firm holds membership in

the

be

How

procedures

Ryan has been in the brokerage

seven

This Week—Insurance Stocks

WHY!
Persons

accom¬

things that

Gerald B. Ryan

Mr.

wny

successful

that

could

B.

mat

helpful it

more

The

Reason:

tell you that he failed

man

caused

the

Gerald

talking

was

failed, they always teii

their

hear

Building, will

of

^apcr

plishments.

the Midland

Savings Bank
under

I

best friends who

my

outstanding radiologist, and

an

the writer

of¬

fice, located in

be

day

of

fine

a

firm.

new

other

one

Doctor, and he said to me,
"It is strange you so rarely see

a

partner of the
curities

a

an¬

Jerome

.'

By ARTHUR B. WALLACE i

By JOHN DUTTON

Dempsey-

Tegeler & Co.,

-

Bank and Insurance Stocks

Securities Salesman's Corner

to

Kenya
Head

the

Government

Colony

Office:

and

26

London, E.
West

13,

End

in

Uganda

Higher Bank Earnings
In

Prospest

Bishopsgate,
C.

2.
(London)
Brancht

Bulletin On

Request

St. James's

Square, S. W. 1.
India, Pakistan, Ceylon,
Burma, Aden, Kenya, Tanganyika1,
Uganda, Zanzibar, and Somali-

Branches

in

land

Protectorate.

Authorized Capital.

£4.562,500

Paid-Up

£2,851,562

Reserve

Capital
Fund

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

Trusteeships and Executorships
also

undertaken

Laird, Bissell & Meeds
Members New York
Members

American

Stock Exchange
Stock

Exchange

120 BROADWAY, NEW YORK 5, N. Y.

Telephone: BArclay
Bell

Teletype—NY

7-3500
1-1248-49

(L. A. Gibbs, Manager Trading Dept.)

Specialists in Bank Stocks

20

The Commercial and Financial Chronicle...

(176)

tial to the building of an everstronger, ever-better America.

Eisenhower's State of

Every

political and- economic
valid confidence

guiue supports a

The Union

Message

mac

elfort will

wise

Presiient

sees

approaching the $490 billion mark

economy

with prospect

by

of balanced budget in fiscal years 1956 and

a

course

be

must

but

President

Eisenhower's

"State

of the Union Message" was read
by clerks before a joint session of
the

Senate

and

sentatives
Jan.

House

of

Repre¬

on

t h e
document

5,

having

been

forwarded

Key
West, F1 a.,

walk
we

where
Chief
tive

the

the

half

have

which

Sep¬
Ptes.

tember.

tistnuuwer

atom

conducting the af¬

Washington.
President's

power¬

work

its

on

to

the

detailed

delineation.

Instead,
from
time
to
time
during this
Session, there will be submitted
to the Congress specific recom¬
mendations within specific fields.
the

comprehensive survey re¬
quired for their preparation, the
Administration is guided by en¬
during objectives. The first is:

of

Our
tions

world

been

our

ac*

dedicated to the achieve¬

are

carried

economy

Message
in¬ stabilized.
recommenda¬
Government spending has been
which, he said,
cut
by more than $10 billion.

on

political

cohesion

and

must

purpose.

tne

Communist

change

iront.

We

We

of

the

North
its

also

of

unity
give such

shall

as¬

act in the firm assurance that the

sistance

fruits of freedom

cently renewed effort of Western
European nations to achieve a

are more attrac¬
desirable to mankind in

tive and

the pursuit of happiness
of

record

than the

tary power,

must, of

we

clear

and

course,

warning

make

t h

military

t

a

guardian of the free
nity and of the peace.

as a

of

collective

other

Turkey,

Iran,

want

we

United

we

a

as

States is

purpose.-, In
Latin
shall continue to co¬

vigorously in trade and
designed to assist

measures

sential element in

are

an

es¬

free world

our

partnership. Increasing trade and
investment help all of us prosper
together. Gratifying progress has
been

made

in

this

direction, most

recently by the three-year exten¬
sion

the

bf

trade

our

agreements

legislation.

Baghdad Pact

Iraq,

whom

Strong economic ties

the

Southeast Asia Collective Defense

among

shall spare

we

economic progress in the area.

Atlantic

Treaty; and the formation in

of

that

America,
operate

North

Middle East of the

all

achieve

serve

commu¬

security:

the

to

peaceful

ready to do its part to assure en¬
during peace in that area. We
hope that both sides will make
the
contributions
necessary
to

In the last year, the free world
has seen major gains for the sys¬

accession

of

seeking to promote

friends. The

cur

power, of

awesome

re¬

integration,

field

the Near East

Israel,

that

to
effective.

the atom must be made '.to

of

the

of atomic energy.

effort in

no

power

warning

Moreover, the

the

to

fair solution of the tragic
dispute
between
the
Arab
States
and

will be met by
the free nations;

of

deterrent

in

In

armed aggression

joint action

measure

as

uses

an effective
system of collective security. This
involves two things — a
system

gives

feasible

greater

Continue to maintain

whieh

is

as

such

Communism.

In the face of Communist mili¬

I most

Pak¬
In

earnestly request that the

istan and the United Kingdom.

Congress

our

in

American

vitality

approve our membership
Organization for
Trade
Cooperation which would assist

hemisphere, the intersystem has continued to

show

own

its

security pacts with

more

the

in

our

to

national

tions,

ever-increasing influence and
In the release o*

United

use¬

have

and

been

Trade

party

a

re¬
ex¬

in

making our trade
truly
reciprocal.
membership in the

States

Organization

15

our

and

agreements

wider membership and

a

fulness.

ports

entering its second dec¬

now

ade with

Tariffs

on

we

removing discriminations and
strictions against
American

have been steadfast

we

which

since 1948. Our membership in the
OTC will provide the most effec¬
tive
and
expeditious means for

support of the United Na¬

cur

carrying out of the General

Agreement

than 40

pursuit of

purposes,

the

the

in maintaining

peace and a common approach to
world problems.
We now have

In

policy and

shall

we

but

Responsibility

for¬ ment of peace with justice for all
has
been nations.
freed
from
governmental wage
With this purpose, we move in
and price controls.
Inflation has a
wide
variety
of ways
and
been halted; the cost of living
through many agencies to remove

have

Our

Alliance

other nations.

The Discharge of Our World

ex¬

betterment

strength

European Union of the sovereign
Federal German Republic; the de¬
veloping cooperation under the

its

Europe,

military

each shift and

Treaty Organization and Western

tne

years ago.

In

Atlantic

objectives rather than

own

our

to meet

pro¬

sharply

Programs

subversion.

endeavor to increase not only the

of

Republic,
begun
because the vast
spread of national and human in¬
terests
is
involved
within
it, 1
shall not in this Message attempt

for

mree

Our defenses
at

win

flexible, designed pri¬

as

marily to forward the achievement

tem

light, the Administration

continued

gram

trade and to harness

for

mankind

fairs of the nation from his office

The

the

ward.

actively

collective

reinforced

costs.

world

pand

Eisenhower is

in

been

reduced

suffered

now

Tne

ago.

years

a

this

has

In

fully strengthened.

from the heart

last

equitably in
they have helped

security system has been

convalescence

he

sharing

War in Korea ended two and

then

continuing his

attack

ber of tne family of nations.

to create.

Execu¬

was

in the labor and sacrifice

our

forebears; that, for our
children, we are trus¬
tees of a great Republic aria a
time-tested political system; that
we prosper as a cooperating mem¬

programs, can also look

prospeiity

the

children's

Virtually all sectors of our so¬
ciety are sharing in these gool
times.
Our farm families, if we
act
wisely,
imaginatively
and
promptly to strengthen our pres¬
to

past, to the
future.
We must

poliov musf

our

well

as

fear,

or

knowledge that
enriched by a heritage

are

of

in

ever

earned

In

farm

doubt

our

pitfalls of the

producing more, con¬
suming more, building more and
investing more tcan ever before.

forward

principles too dynamic,

to the facts of the

us

more,

ent

from

too

strengtn and position would blind

opportunities.

ing

are

A heedless pride in our present

President
dedicates policy and actions to achieving peace but notes added
complexity in conflict between international communism and
freedom. Strives for military program to meet today's needs.
furtherance of small business

(7)

now

responsibilities require
that we approach this year s busi¬
ness witxi a sober humility.

and people's savings.

power

we

resources

entertain

to

us

Favors swift advances in
technology and machinery obsolescence under our competi¬
tive system and says we can foster a strong, expanding, free
economy by: (1) providing 35,000 public housing units; (2)
embarking on a $25 billion highway program; (3) disaster
assistance; (4) new and modernized post office buildings;
(5) backward area development; (6) aid to education, and
ing

our

many, our

resultant depreciation of purchas¬

a

than

purposes too wormy and the
issues at stake top immense tor

avoid fiscal bankruptcy by
and supply inflation, holding that the inevitable results

of such

plentiful harvest

benefit

our

Warns against attempt to

money

human

enjoy,

1957, but rales out excise and corporation tax cuts until April,
1957.

an even more

Ox

rewarded

be

time,

Thursday, January 12, 1956

will

evidence

our

continuing desire to cooperate in
promoting
an
expanded
trade

fliers from Communist China, an
essential prelude was the world

among the free nations. Thus the
pail of fear; to strengthen the
opinion mobilized by the General
Organization, as proposed, is ad¬
our partners and to im¬
Assembly which condemned their mirably suited to our own in¬
prove the cooperative cohesion of
would ensure continued domestic
imprisonment and demanded their terests arid to those of
like-minded
Nearly
300,000
positions
have the free world; to reduce the liberation. The successful
Atomic nations
prosperity and provide the neces¬
in
of
working for steady
been eliminated from the Federal burden
armaments,
and
to
sary defense establishment for the
Energy Conference held in Geneva expansion of trade and closer eco¬
payroll. Taxes have1 been substan¬ stimulate and i n s p i r e action under
United Nations auspices nomic
preservation of peace. In the fis¬
cooperation. Being strictly
among all nations for a world of
and our Atoms for Peace
cal area, the President anticipates tially reduced. A balanced budget
program
an
administrative entity, the Or¬
is in prospect. Social
security has justice and prosperity and peace. have been practical steps toward
a
balanced Federal

cluded

tions

wealth of

a

and

plans

Budget

fiscal

1956

years

and

for

1957

and

recommended that debt reduction
take precedence over tax reduc¬
tions should surpluses materialize.

been extended to

10 million

more

Americans and unemployment in¬
surance to 4 million more.
Unpre¬
cedented

advances

in

THE

CONGRESS

UNITED

OF

THE

attacked.

accomplished with
The

opening of this

must

in

arouse

thanks

to

new

all

us

year

grateful

kind .Providence
protection has been ever

whose

a

whose

and

present

bounty

has

been manifold and abundant.

caution

State

of the Union

strates what
under
their

God

accomplished
free people; by
their understanding

vision,

of national

today demon¬

be

can

by

a

problems, their initia¬

tive, their self-reliance, their
pacity for work

and

—

willingness to sacrifice

ca¬

by their
wnenever

sacrifice is needed.
In the past three
years, respond¬

ing to what
Government
and

the

our

to

people want their

do,

the

Executive

much in

building

a

Congress

have

done

stronger, bet¬

ter America. There has been broad

progress in

a

communities

and

of

the

Executive

the

several

States.

is

at

unparalleled

an

prosperity.
is

more

tributed

billion

The

widely
than

level

national
and

ever

of

income

fairly
before.

reached

people,

an

we

are

year

ished

the

business

of

the

before us—and to the unfin¬
business of

resolution,

last

year—with

outlook

Many measures
tional
importance
last

year

demand

to

of

is

bright

great

na¬

recommended

the

Congress

immediate

still

attention

—

legislation




a

the past year, our search for
more stable and just peace has

taken

varied

most

important

and

in

forms.

at

in

Geneva,

Fall

the

Among the
the
two

were

of

last

ment

July
We

year.

agree¬

critical issues that jeop¬

on

world

of

of

moderation

word

and

war

would

nuclear

a

intolerable
not be

disaster

be

which

permitted to

occur.

an

must

But in

this

of

Our

source.
use

to. create

ress

our

now

and customs

in prog¬
uses

probVm
moved

We

the

political

invest¬
by avoiding unfair
tax
duplications, and to foster
foreign trade by further simplifi¬
cation
and
improvement of our

of

year

forefront

of

endeavor.

Ge¬

I declared the readiness of

United

States

blueprints of the

to
exchange
military estab¬

lishments

nation

of

our

and

the

USSR, to be confirmed by reci¬
procal aerial reconnaissance.
By

overseas

customs

prac¬

At

to'encourage

need

ment

the crucial
disarmament
has

of

to

policies of the United

States.

energy.

During the past

the

re¬

Ac¬

International

an

Agency to foster peaceful
atomic

ganization for Trade Cooperation
cannot, of course, alter the control
by Congress of the tariff, import,

new

sponsorship

has benefited

tive negotiations are

neva,

bitterness,

use

lations with other countries.

The J.uly meeting. of. Heads of
Government held out promise to
.,

legislation.

We must sustain and

fortify

our

Mutual Security Program. Because
the conditions of poverty and un¬
rest in less

developed

make

areas

their people a special target of
international communism, there is
a

need

to

means, I felt mutual suspi¬
cions could be allayed and an at¬

help them achieve the
growth
and 'stability
necessary to preserve their inde¬
pendence against communist

mosphere

this

economic

October, when the Foreign

developed
in
which
negotiations looking toward limi¬

threats

tation

better achieve the gerater
strength
that is our common goal,
they

Min¬
again, the results dem¬
conclusively that the

onstrated

leaders

Soviet

the

create

tions

for

to

taken

the

implementation

new items of business
likewise require our attention—
release

The

of

will
of

further

the

pro¬

energies

our
people; that will broaden
opportunity for all of them; that
will advance the Republic in its
leadership toward a just peace;
measures, in short, that are essen¬

not

willing to

'*v?
between

this

a

on

international

has

complexion.

new

*

We
ers

know the Communist lead¬

have

tics

of

know

often

practiced the tacf
retreat and zigzag.
We

that

Soviet

communism

threat to
the

still

serious

a

And

the free world.

Middle

moves

Chinese

and

poses

East

recent

in

Soviet

hardly compatible with

are

the reduction of international ten¬

the

Communist

free

nations

emphasis
lence

and

to reliance

and

!

'

Yet

from
the
on

duplicity.

•

tactics
have

shifted

reliance
threat

against

of

on

in

vio¬

violence

division, enticement
We must be well

prepared to meet the current tac¬
tics which pose a dangerous though
less obvious threat. At the same

im¬

have

success.

Disarmament

on

proposal

the

freedom

and

communism

would

In the United Nations Subcom¬
mittee

</■'.*

arms

proved chances of

condi¬

Nevertheless, it is clear that the
conflict

of

lasting

and

secure

a

sion.

^'Many

are

indispensable

peace. /

the

energy
of such

tical

for school and high¬
construction; health and im¬
migration legislation; water
resources
legislation; legislation

complete

world-wide

ardize the peace.

way

mote

higher standards of living—earn-

,

In

the

isters met

the

with promise.

dis¬

high. As a
achieving ever

po¬

that

to

that

all-time

parties.

are

our

ourselves

measures

number of Americans at work has

both

Legislative Branches, keeping this
caution
ever
in
mind, address

and

ap¬

mark,

litical

the

of

we

fostering the energies
of, our foreign economic policy;
our people, in
providing greater
such labor legislation as amend¬
opportunity for the satisfaction of
ments of the Labor-Management
their needs, and in
fulfilling their Relations
Act, extension of the
demands
for
the
strength
and
Fair Labor Standards Act to ad¬
security cf the Republic.
ditional groups not now
covered,
Our country is at
peace.
Our and occupational
safety legisla¬
security posture commands re¬
tion; and legislation for construcspect. A spiritual vigor marks our
h'o(p, of an atomic-powered exhibit
national life.
Our
economy,

objectives

by

in ,4he
action,
which tends to generate conflict
and war.
All were in agreement

If

of

proaching the $400

national

self-imposed explored the possibilities of

against

unnecessary and
unwise interference in the private
affairs of our people, of their

The

These

fully supported

conferences

Tnis record of progress has been

STATES:

ties wilh

civil

rights
have been made. The long-stand¬
The President's
Message in full ing and deep-seated problems of
text follows:
agriculture have been forthrightly

TO

the

United

itself

was

States

last

fall,

explored

and

also

declared

willing to include' reciprocal

ground

inspection of key points.
By the overwhelming vote of 56
to 7, the United Nations on Dec! 16
indorsed these proposals and gave
them

top priority. Thereby, the
placed squarely before

a

issue

is

the bar of world opinion. We shall

in seeking

persevere

a

general

In

and

order

need-

assurance

economic
ment

enticements.
that

friends

our

of

assistance

projects and

may

continuity in
for develop¬
which

programs

we approve and
which require a
period of years for planning and
completion.
Accordingly, I ask
Congress to grant limited author¬

ity to make longer-term commit¬
ments for assistance to such

ects,

to

be

priations
fiscal

fulfilled

to

be

from

made

proj¬

appro¬

in

future

years.

These various steps will
power¬

re¬

duction of armaments under effec¬

fully

tive inspection and control which

foundation

are

essential safeguards to ensure

reciprocity

and

protect the

secu-

ritv of all.
In

the

year

much

re¬

done.^,.
maintaining

deterrent,

we

our military
must intensify our

efforts to achieve
Asia

shall

a

just

continue

peace.

In

to

economic progress and
the free world.
v

In

all

exorable

the

threat

help

Communist coercion

or

law

world

justices

of

economic

must

vitality of
'•

•

<

things, change is the in¬

is working

give
help to nations struggling to main¬
tain
their
freedom
against
the
we

the

present momentum toward general

coming

mains to be
While

strengthen

of our foreien
policy.
Together with constructive action
abroad, they - will maintain the

the

of

life.

In

strongly; but

are

much

of

ferment of change

still

grave in¬

uncorrected.

We

not, by any sanction of ours,
to perpetuate these wrongs.

Volume 183

Number 5498

The Commercial and Financial Chronicle

...

I

have particularly in mind the
oppressive division of the German

to achieve the

same objectives, in¬
cluding career incentives for med¬
of millions ical and dental officers and nurses,
elsewhere, and the exclusion of and increases in the proportion of
Japan from United Nations regular officers.
membership.
I
Closely related to the mission
We shall keep these
injustices of the Defense Department is the

people,

in

the

the

forefront

sciousness
the

bondage

and

both

of

to

world

right these vast
terest

human

seek

of

pressure

of

con¬

maintain

opinion to
in the in¬

wrongs

justice and

secure

peace.

Injustice
Because

ignorance.
understanding of the
on

truth about America is
most

of

one

our

powerful

forces, I am rec¬
substantial increase

ommending a
in budgetary support of the United
States Information
The

of

sum

Agency.
international

our

effort should be this: the waging
of peace, with as much resource¬

fulness, with
dedication

have
our

a

sense

of

and
urgency,
as
we
mustered in defense of

ever

country

this

great

as

force. Our

time

in

effort,

our

Civil Defense

of

In

war.

is

weapon

weapons are the

not

prin¬

ciples and ideas embodied in

our

expanded continental defense pro¬

including the distant early
warning system. Our federal civil
defense

authorities

in

progress
now

their

have

comprehensive

being

conducted

made

and

program,

studies

traditions, applied with
the same vigor that in the past
made America a living promise of

Another guide in the prepara¬
tion of the Administration's pro¬

is:

gram

jointly

Because peace is the keystone of
national policy, our defense

our

emphasizes an effective
type of power calculated
to deter or repulse any aggression

program

flexible

and
of

to

war,

tary
our

the peace.

preserve

have

we

strength

had mili¬

never

better

Short

adapted

to

needs with improved readiness

for

The mainte¬

emergency use.
of this

nance

strong military

capa¬

bility for the indefinite future will
continue to call for a large share
of

national budget. Our mili¬

our

tary

must

programs

needs

the

meet

of

today. To build less
expose the nation
to ag¬
gression. To build excessively, un¬
would
der

the

defeat

influence

cur

destroy the
nomic

•

fear, could
and impair or
freedom and eco¬

very

system

fenses

of

purposes

military

our

,

de¬

| designed to protect.
We have improved the
effectiveneses and combat readiness of
are

forces by developing and mak¬
ing operational new weapons and

our

by integrating the latest scientific
developments, including new
atomic weapons, into our military
plans.

We

continue

production

of

the

to

push

most

the

modern

military aircraft. The development
of long-range missiles has been on
accelerated basis for

an

We

moving

are

some

time.

rapidly as prac¬
nuclear-powered
aircraft and ships. Combat capa¬
bility, especially in terms of fire¬
power,' has been substantially in¬
ticable

as

towards

creased.

We

have

made

the

ad¬

justments in personnel permitted
by the cessation of the Korean
War, the buildup of our allies and
the introduction of
The

services

new

weapons.

all

are

planning
realistically on a long-term basis.
To strengthen our continental
defenses

the

United

States

and

Canada, in the closest cooperation,
h a v*e
substantially
augmented
early warning networks.
Great
progress is being made in extend¬
ing surveillance of the Arctic, the

Atlantic^
In

the

and

proaches

to

the

North

last

Pacific

America.

analysis

our

ap¬

s
real

strength lies in the calibre of the
and

men

Women

in

our

Armed

Forces, active and Reserve.

procedures that
of

case

be adopted in
atomic attack. We must

an

strengthen
the

most

Federal

States

the

can

and

assistance
in

cities

effective

to

devising

fied

a

common

broad and

de¬

mobilization

base.

diversi¬

We

have

the

and

again

once

extend

the

Defense

Production Act.p

tion's

security
to

is

a

internal

continuing
subversive

activity within or without our
government. This Administration
will

relax

not

its

efforts

to

deal

forthrightly

and
vigorously
in
protection of this government and
citizens

the

same

I

renew

for

request of

my

legislation to

medical
ents

but

care

and

viors'

a

provide

year

proper

military depend¬

more

benefit

ministration
tional

for

last

equitable

program.

will

The

prepare

recommendations

against subversion, at




to

improve

for

the

increase

to

many

the

great

things

scale

of

majority of

for efficiency in government
operations
and
an
alert
guard
against waste and duplication, has
bi ought us to a prospective bal¬
care

between income and expend¬

ance

This

is

continue

military

being done while
to

strengthen

our

security.

during the fiscal
30, 1956.

June

year

ending

I shall propose a

for

the

next

balanced budget
fiscal year ending

June 30, 1957.

But the balance
be

cannot

us.

No

In successful

prosecution of the
the nation called for the ut¬
effort

response

are

not

It will also be

nec¬

to
continue
all
of
present excise taxes without

the
any

its

of

farmers.

unsurpassed.
to be

now

long

blamed for the

peacetime.

the

Failure

recognize
timely adjust¬

We

only

the farm problem it¬

as

here concerned

are

with

our

essential

next

It
our

is

unquestionably true that
and, in the interest

of

long-term and continuous eco¬
nomic growth; should be reduced

prudently

It is es¬
sential, in the sound management
of the Government's finances, that
we

we

be

mindful

national
tion

we

to

matters

must

be above and beyond

present tax level is very bur¬

when

continu¬

way

sideration of these

beyond

not

of life. Both are
the well-being
and strength of the nation. Con¬
a

for

year

of

debt and

can.

our

of

enormous

the

obliga¬

have toward future Amer¬

icans to

reduce

ever

politics. Our
national farm policy, so vital to
the welfare of farm people and
all of us, must not become a

for

political warfare.

field
Too much

is at stake.

Our

Economic

Report

Conservation

wish

I

re-emphasize

to

the

critical importance of the wise use
and
conservation
of
our
great
natural

of land, forests,
water,
and
their
long-range development consistent
with our agricultural policy. Water
resources

minerals

in

and

particular

now

plays

in¬

an

creasing role in industrial proc¬
esses, in the irrigation of land, in
electric
power,; as
well as
in
domestic

At the same time,
potential of damage and

uses.

it has the

A

government
sis broad and

ing supplies of food and fiber, but
also with

the

communications.

disaster.
of

responsibility- -^afe
self.

in

and later

,

dimensions

indispensable

another

of

to

legislation
brought its inevitable result in
peacetime — surpluses, lower
prices and lower incomes for our

reduction and the corporation in¬
come taxes at their present rates

April 1.

War

markets

that basic fact by a
ment
of
wartime

complex

cussion

Resources

continued.

not

are

come.

shall

con¬

price - depressing
surpluses produced in response to
wartime policies and laws
that
too

confidently de¬

for years to

briefly mention four
other subjects directly related to
the well-being of the
economy,
preliminary to their fuller dis¬

Farmers

mountainous,

were

may

now and

Their

their

superb,

was

tribution

The

essary

I

group is more fundamental to our
national life than our farmers.

most

people

pend,

the

war,

farm

re¬

as

so

farmers.

continuing every-day effort of
the
Executive
and
Legislative
Branches
to
keep
expenditures

other

No

indispensable

seeking

the

all.

us

land that feeds and clothes

without

we are

accomplished

under control.

is

markets

I expect the budget to be in bal¬
ance

to

concern

resolutely with a sound and for¬
ward looking program on which

farm

comprehensive legislative

be submitted to the

ing the Session.
of

who have responsibility for

us,

their

government, understanding of
their problems and the will to
help solve them. Our objective
must be to help bring production

water

our

Congress dur¬
The development

resources

cannot

be

accomplished overnight. The need
is such that

we

must make faster

progress and without

fore,

strongly

I

delay. There¬

recommend that

action be taken at this Session
such

wholly

on

projects as
the Colorado River Storage Project
Federal

and

the
Frying
Pan-Arkansas
Project; on the John Day partner¬
ship project, and other projects
which provide for cooperative ac¬
tion

people expect of

pro¬

for water conservation will

gram

between the Federal

ment

and

Govern¬

non-Federal

interests;
and on legislation which makes
provision for Federal participa¬
tion in small projects under the
primary sponsorship of agencies of
State and local government.

can

we

that

debt when¬

,

.

sehtial

activities

were

dropped!.

Government expenses were

fully

scrutinized.
cut

amount

Total

carej-

spending

by $14 billion below the
planned by the previous

—to
of

assure

our

self
our

effective

functioning

enterprise system—that the

Federal

Government

with

certain

economic life.

concern

broad
Most

areas

it¬

of

important

of these is:

Agriculture

1954.
This made

appropriate

possible—and it was
in the existing cir¬

Our farm people are

not sharing

Almost $71/2 billion were released

they should in the general pros¬
perity. They alone of all major
groups have seen
their incomes
decline, rather than rise. They are
caught between two millstones—

and every

rising production costs and declin¬

cumstances ' of

transition

peacetime

Ad¬

tax cut in any year

addi¬

part

a

vitally

.

sur-

designed

living

time fully protecting the

Administration for the fiscal year

personnel,

Such harm to

21

into
balance
with existing
and
During the past year the areas
appropriately do so. new markets, at prices that yield of our National Parks have been
constitutional rights of all citizens. Under conditions of high peace¬ farmers a return for their work expanded, <
and
new
wildlife
A third obj ective of the Admin¬ time prosperity, such as now exist, in line with what other Americans refuges have been created.
The
we can never justify going further
istration is:
visits of our people to the Parks
get.
into debt to give ourselves a tax
To reach this goal, deep-seated have increased much more rapidly
Fiscal Integrity
cut at the expense of our children.
than have the facilities to care
problems must be subjected to a
A public office is, indeed, a pub¬ So, in the present state of our fi¬
for them. The Administration will
stepped-up attack. There is no
lic trust. None of its aspects is nancial affairs, I earnestly believe
single easy solution. Rather, there submit recommendations to pro¬
more demanding than the proper
that a tax cut can be deemed jus¬
must be a many-sided assault on vide more adequate facilities to
management of the public finan¬ tifiable only when it will not un¬
the
stubborn
problems of sur¬ keep abreast of the increasing in¬
ces.
I refer now not only to the balance the budget, a budget which
terest of our people in the great
pluses, prices, costs, and markets;
indispensable virtues of plain hon¬ makes provision for some reduc¬
and a steady, persistent, imagina¬ outdoors.
esty and trustworthiness but also tion, even though modest, in our
tive advance in the relationship
Disaster Assistance
to the prudent, effective and con¬ national debt. In this
way we can between farmers and their gov¬
A modern community is a com¬
scientious use of tax money. I re¬
best maintain fiscal integrity.
ernment.
fer also to the attitude of mind
plex combination of skills, spe¬
A fourth aim of our program is:
In a tew days, by special .mes¬
cialized buildings, machines, com¬
that makes efficient and econom¬
sage, I shall lay before the Con¬ munications
To Foster A Strong Economy
ical service to the people a watch¬
and
homes.
Most
gress
my detailed
recommenda¬ importantly it involves human
word in our government.
Our competitive enterprise sys¬
tions for new steps that should be
lives. Disaster in many forms—
Over the long term, a balanced
tem depends on the energy of free
taken
promptly
to
speed
the
by flood, frost, high winds, for
budget is a sure index to thrifty human beings, limited by prudent
transition in agriculture and thus
instance—can destroy on a mas¬
management—in a home, in a restraints in law, using free mar¬
assist our farmers to achieve their
sive scale in a few hours the labor
business or in the Federal Gov¬
kets to plan, organize and distrib¬
fair share of the national income.
of many years.
ernment. When achievement of a ute
production, and spurred by the
Basic to this program will be a
balanced budget is for long put
Through the past three years,
prospect of reward for successful new attack on the surplus prob¬
off in a business or home, bank¬
the Administration has repeatedly
effort. This system has developed
lem—for even the best-conceived
ruptcy is the result. But in similar our resources. It has marvelously
moved into action wherever dis¬
farm program cannot work under
circumstances a government re¬
expanded our productive capacity. a multi-billion dollar weight of aster struck. The extent of State
sorts to inflation
of the money
participation in relief activities,
Against the record of all other accumulated stocks.
supply. This inevitably results in economic systems devised through
however, has been far from uni¬
I shall urge authorization of a
depreciation of the value of the the
form and, in many cases, has been
ages, this competitive system soil bank program to alleviate the
either inadequate or non-existent.
money, and an increase in the cost
has proved the most creative user
problem of diverted acres and an Disaster assistance
of
living. Every investment in of human skills in the
legislation re¬
develop¬ overexpanded agricultural plant.
personal security is threatened by ment of
physical resources, and This will include an acreage re¬ quires overhauling and an ex¬
this process of inflation, and the
perimental program of flood-dam¬
the richest rewarder of human
serve
to reduce current and ac¬
real values of the people's savings
age
indemnities should be
effort.
cumulated surpluses of crops in
whether in the form of insurance,
undertaken.
The
Administration
This is still true in this era when
most serious difficulty, and a con¬
bonds,
pension
and
retirement
will make detailed recommenda¬
improved living standards and ris¬ servation reserve to achieve other
funds
or
savings
accounts
are
tions on these subjects.
ing national requirements are ac¬ needed adjustments in the use of
thereby shriveled.
r
;
companied by swift advances in agricultural
Area Redevelopment
resources.
I shall
We have made long strides these
technology and rapid obsolescence urge measures to strengthen our
We must help1 deal
past three years in bringing our
with the
in machines and methods. Typical
surplus disposal activities.
Federal
finances
under
control.
pockets of chronic unemployment
of these are the strides made in
I
shall
propose
measures
to that here and there-, mar the
The deficit for fiscal year 1953 was
construction of plants to produce
strengthen individual commodity nation's general industrial pros¬
almost Ql/z billion dollars. Larger
electrical, energy from atomic
programs, V to
remove
controls perity. Economic changes in recent
deficits seepaed certain — deficits
which .would have, depreciated the power and of laboratories and in¬ where possible, to reduce carry¬ years, have been often so rapid
stallations for the application of
overs, and to stop further accum¬
value of. the dollar and pushed
and far-reaching that areas com¬
this new,, force in industry, agri¬ ulations of surpluses. I shall ask
the" cost ,of'living still higher, But
mitted to a, single local resource
culture and the healing arts. These the Congress to provide substan¬
or
industrial activity have found
government waste and, extrava¬
developments make it imperative tial new funds for an expanded themselves
gance were searched out. Nonesr
temporarily deprived
its

capable

military

desiied

densome

was

needs to be done. This year,

industry and
production of the

ine

fense.

We have

ing prices.

of the national economy so

source

we

tion, the States, and critical tar¬
get cities to determine the best

Much
has been done to attract and hold
more

of

in¬

to

important to everyone is of great

in

the

by

Federal Civil Defense Administra¬

alertness

National Security

two-thirds

directly

went

jobs

iture.

Of great importance to our na¬

The Constant Improvement of Our

Almost

savings

are

facilities,
materials,
skills
knowledge rapidly to expand
the production of things we need
for our defense whenever they are
freedom for all mankind.
required.
But mobilization base
To accomplish these vital tasks,
requirements change with chang¬
all of us should be concerned with
ing technology and strategy. We
the
strength,
effectiveness
and must maintain flexibility to meet
morale of our State Department new
requirements. I am request¬
and our Foreign Service.
ing, therefore, that the Congress

historic

benefited.
the

dividuals. This tax cut also helped
to build up the economy, to make

:
Administration. A particular point Americans.
of relationship arises from the fact
The
strong expansion, of the
that the key to civil defense is the
economy, coupled with a constant

gram,

thrives

an

task of the Federal

(177)

economy

to

a

— the
largest
in our'history.

taxpayer in the country

as

research front, fo
markets, new corps,
and new uses.' The Rural Devel¬
opment Program to better the lot
of low-income farm families de¬
serves full Congressional support.
The Great Plains Program must
go forward vigorously.
Adyances
on
these and other fronts
will
pull down the price-depressing
surpluses and raise farm income.
drive

on

the

develop new

In

this time of

culture,

we

testing in agri¬

should

all together,

regardless of party, carry

forward

of their markets and

Such

their liveli-

V

hood.:

conditions

mean

severe

hardship for thousands of people
as the slow process of adaptation
to

new

This

circumstances

goes

on.

be speeded up.
Last year I authorized a major
study of the problem to find addi¬
process

tional steps to

can

supplement existing

programs for the redevelopment
of areas of chronic unemployment.

continued

on

page

22

'

:;k'■■
22

The Commercial and Financial Chronicle...

(178)

rnntimiefl imm
^vnuriueu

to enact

P1

>nnnt>

jiurn puye

Federal

AT

IffANH ATlTfif

£

Xjl&ennUWCI

w

IIKIIw

mi

TnA
ilie

•

should be limited to

IT

I

IflPWJlfTP

HI ATI

Union

Uica&ayc
+u

mitted,

•

rather

than decrease local and
State support of schools and to

the greatest help to the States

+V,

+

five-year

a

P^od' ,™ust °Perate to increase

earnestly recommend that the and localities with the least finanCongress give prompt attention to cial resources. Federal aid should
with Federal technical and loan, the committee s proposals.
in no way jeopardize the freedom
assistance local efforts to get on
Essential to a prosperous eco- of local school systems. There will
with this vital job. Improving such nomic environment for all busi- be presented to the Congress a
communities must, of course, re- ness, small and large-for agri- recommended program of Federal
main the
primary responsibility culture and industry and com- assistance for school construction.^
will

Recommendations

of the

their

designed

sub-

be

supplement

to

people living there and of
But a soundly con-

States.

ceived

Federal

gram

to them

partnership proreal assistance

be

can

of

their efforts.

in
.

_.

a

road construction

on

and

for

personal safety, the gen-

prosperity tne national secunty of the American people
number

tne

year,

of

year

the

million

61

During the past
over 38,000 persons lost tneir
highway accidents, while

fearful

toll

of

and

injuries

property damage has gone on un3

In my

Message of Feb. 22, 1955,

I urged that measures be taken to

complete the vital 40,000 mile interstate

system

10 years

at

over

period

a

estimated

an

of

Federal

cost of

approximately $25 billion.
No program was adopted.
mounting
whole

traf f

fc

interstate

Intergovernmental ReCommission

the

on

as

unavoidable in

piecemeal

a

Furthermore,

I

as

pointed out last
nature
lead

to

us

bounds
ment.

year, the pressing
this problem must not

of

solutions

of

sound

As

in

outside ! the

fiscal

the

manageof

case

0ne

specific and most vital, |3ov£uncion merits study

ernmental

action

and

the

b

part 0f our program

gand,

As

st

three

situation

s

has

been

1,000
new
tolfices
have bsen
pr0vided.
practices
have
been
modernized
and
transportation
and operating methods are being

Nearly

£inancial

constantly improved. A new wage
and incentive plan for the half
million postal employees has been

established.

JU

Never before has the

handled

system

postal
so

Quickly

Post

and so

Office

much
economiso

Department

mail service,
is the Department's fiscal plight. It now
faces an annual deficit of onehalf billion dollars.
,
Recommendations on postal facilities and on additional postal
revenues will be submitted to the
to have improved

are

The

second

problem

.

Congress.
A final consideration in our pro-

other

national

agriculture and the

A fundamental
belief shines
f°rth in this Republic. We believe
in the worth and dignity of the individual. We know that if we are
to govern ourselves wisely—in the

specifically menintegral part of our

tradition of America — we must
have th<r opportunity to develop

in

other

systems,

I

recommend

continuation

Aid

Highway Program.

Aside from

<four

of

the

Federal

subjects

planning is:
■

„

.

program, protection was ex-

jp.ust also carrv forward the Session.
As I stated last year, an
job of impr0ving the wage-hour executive pay increase is essenlaw

Last

I

vear

reouested

c^gress to^"adenthe
tbe

of

mjnjmum

th

f

t

wage

to*assist

fjndjng

way

jvi0re0ver

nledS

Conges,

the

to

in

attain

this

coal

reauested

as

legislation

reDeat

T

of the Executive

resources

Branch

thp

coverage

that recommendation and

last

vpar

should

S

bp

tn

cjarjfy and strengthen the eighthour laws for the benefit of workers
wbo are subiect to Federal
standards

wage

on

Federal

Federally-assisted

and

construction

and other public works
'

,

an

efforts to foster

governmental

efficient

to

Such an increase,

management.

together with needed adjustments
in the pay. for the top career posi-

tions» is also necessary to the
equitable completion of the Federal Pa^ program initiated last
yearCither, legislation will be
Pr°P°sed> including legislation for

PrePaid

health

Sr°up

insurance

lor emPloyees and their depend-

ents and to effect major improvements in the Civil Service retirement systemA11 of us share a continuing
for

American

irorces.

those

.

We

®

■

„

Jan

il

i QM

Ocr.mJt^nM

™ Jan. 11 1954 Occupational
™:1* de™aildsatitention, as

J;a
la?ion

x

past year the steady improvement
in
the economic health of small
business has reinforced tie vital-

..

The

have

who

in

the

Commission

Armed
on

Vet-

nnlcum-

\

:

andZrbor

the

Pr°Sress

Branch operations throughout the

" nation,

Com"

of

proud

are

our people have made in the field
dyil
rights
In
Executive

of

elimination

na«on'and

of

discrimi-

segregation is all but

?nd Harbor W.wkers ■Com- completed. Progress is also being
system is sound. It must be kept Pe^tion Actisstill^needed The made among contractors engaged
so. In developing improvements cXmbi? UnemnlOTment Ins,.?
in furnish'ng Government servm the system, we must give the "
aml wSnn t„ l
ices and requirements. Every citcareful consideration to pop- ance
in
njrirt izen now has tfte °PP°rtunity to
ulation and. social trends, and to with nonoccupational disahiHtv7n fit hinlself ior and to hold a P°"
llscal, requirements. With these W' tn nonoccupational, disability in- gion Qf responsibility in the servbreadwinner. The ™nf

death of the

considerations in mind, the Administration will present its recommendations for further expancoverage and other steps

siai?

^

needg .n ^

area

s aeis®®;"ow

,,

®2'loegflslati°"
?p y
p ^
e^?al
■
Q h_^lc without aissimole iusticeSe3T pa/

„nnlv

P

,

which can be taken wisely at this

we'fare incl.ude i"«eased chUd

teto?^^ement ttese neede?
u,im

i

fields and the quest for new
d
1 e point where alknowledge through researcn in m°st three of every, tive families
social welfare are essential. Simi® ' to^'ns> and subuib^
the problems- of our aged own the houses they live in.
People need our attention.
I or the housing program, most
i

The nation has made dramatic
in

conquering

disease—

progress of profound human signii'icance which can be greatly ac-

intensified effort

an

A well-supported, well-balanced program of
research, including basic research,
can open new

frontiers of knowl-

edge, prevent and relieve sufferjng, and prolong life. Accordingly
i shall recommend a substantial
a

,

disaPPearing

are

program.'As

hotels,

from

It is disturbing that in some
localities allegations persist that
being deprived
vote and are
being subjected to unwarranted economic pressures. I
Negro dti^ns
of their right

are

to

likewise

recommend that the substance of
the£e charges be thoroughly examined by a Bi-partisan Commission created by the Congress. It
is boped that such a Commission
will

be

that

it

established

arrive

may

promptly,
at

so

findings

of the legislative authority al- which can receive early considready exists.
However, a firm eration.
Program ot public housing is esThd stature of our leadership
sential until the private building in the free worid has increased
industry has found ways to prothrough the past three years be¬
vide more adequate housing for cause we have made more proglow-income families. The Admin- ress than eyer before in a similar
istration will propose authority to period to assure our citizens
contract for 35,000 additional pub- eQuaiity in justice in opportunity
be housing units in each of the and in ctvd rights'. We must exnext, two fiscal years for com- !pand this effort on every front.
mumties which will participate in We must strive to have every per-

increase in Federal funds for the
support of such

In the District

reStaUra"tS a"d °ther
.

progress

ice of his country.

0f Columbia, through the voluntary cooperation of the people,
discrimination
and
segregation

q{ ^

welfare services, extension of the
program of aid to dependent chile d of hum;ann<eeds, we
dren, intensified attack on juvenile
housing
delinquency, and special attention P S
1S contributing,so
to the problems of mentally re- 8
®
°Ur
tarded fhHdren. The training of people and the prosperity of our
more skilled workers lor these
Home ownership is now

celerated by

,.

nation

*

an

judged and measured by what
rather than by his color,

son

is

he

a

.....

this

serVed

i

a^. ^tegrated attack on slums and
tebgbt. ,..
strong and ex- our individual capacities to the integral part of this effort, I shall !. 10 meet the needs of the growpanding free economy is keeping
recommend a new plan to aid con- ^g number of plder people, sevopen the door of opportunity to
fulfill the individuals aspi- struction of non-Federal medical ^al amendments to the National
new and small
enterprises, check- rafi°ns in the American way of research and teaching facilities Housing Act will be proposed to
ing monopoly, and preserving a life, g°°d
education is funda- and to help provide more ade- assist the private homebuilding
competitive environment. In this mental- ^ood education is the outr quate support for the training of /industry as well as charitable and
tioned,

tial

concern

r,

tended to some 10 million additional workers and benefits were
now helps

in medical research.

^

TT

insur-

workers and their families against
in loss of income in old age or on the

the Post Office Department

(h'

.

fiscal

overhauPled.

ance

1954 Amendments to

and

Government

the

Under the

increased The system
of promoting protect 9 out of 10

congress.

The ResP°nse to Human Concerns

highway

manage-

the old-age and survivors'

needed

improvement

personnel

ment legislation is needed in this

already in the process of implementation in important areas.

continue

the

Additional

q"a*e disclosure of the financial erans Pensions is at this time conemp ae? pei??10*} ducting a study of the entire field
c,Vhcton+ioi
?•
afford 0f veterans' benefits and will soon
P^olectl0n to their submit proposed improvements. /

gram

drastically

school / districts

to

awards program.

to provide adequate schools.

pressing problems, there must be
an
adequate plan of financing. To
the

payments

meaningful incentive

to

pay

rep0rts of these Commissions are
now
under intensive review and

one

way can the required planning and engineering be accomplished without the confusion and
waste

legislation to provide continuation
of

also

needed

enacted !

Pr°P°se legislation to assure ade-

must

this

approach.

The

paired the ability of those districts

the

of

be faces two serious problems. First,
project, to be much of its physical plant—post
completed approximately within offices and other buildings-is obthe specified time.
Only in this solete and inadequate. Many new
way can industry efficiently gear
buildings and the modernization
itself to the job ahead.
Only in of present ones are essential if we

authorized

welfare.

Government—the

Branch

°he ^Thd

problem,

system

but

management

T™® Administration will shortly

motor vehmles has increased lrom

58 to

and

public

where Federal activities have im-

needed

eral

During tne

the

Organization of the Executive

hind in
the

that

lations

have fallen further be-

we

efficiency in Govern-

To

mission

....

modern
interstate highway system is even
more
urgent this year than last,
for 12 months have now passed in
which

—

ment.

Highway Legislation

Legislation to provide

is

Such a "program should be acend, exhaustive companied by action to increase
studies of the entire governmental services to the nation's schools by
structure were made by the Com- the Office of Education and by
merce

labor

the existing deficit of school class- amendments should be
rooms. Such £ program, which without further delay.

f

#«

r

an effective program of
assistance to help erase

Thursday, January 12, 1956

.

race

'Qr

reiigion.

There will soon

recommended to the Congress

be

program

further to advance the

efforts 0f the Government,

the
t

area

within

of Federal responsibility,

aCcomplish these objectives.

'

filod chureh^and'good medical research manP°wer- ' "wHh
la^ee a^Sber of the
One particular challenge con:l<:s'Tg°?d':h™ ^hools face Finally, we must aid in cushions Jfolfe
to'fronts'us. In the Hawaiian Islands,
*
p?oblems ! obi
I inS the heavF and risin® costa of ernfze and imorove ° IxiTthiv East meets V/est. To the Islands,
lty of our competitive economy.
Pr*P'n^.PX\e™?LldprX®
illness and hospitalization to in- dw/nln-.s
rer^mmlnd
Asia and Europe and the Western
We shall continue to
help small
^v'Ulutions
to aw single divlduals and families. Provision S
Hemisphere, all the continents,
to adne1LTXrannc n«°andto\Cfnf action They wiU yield only to® a ^ould be made, by Federal rein- p/ovemZfs in the'hSme be i,™- have contributed their peoples and
oeteht
couiiS oT i S' continuing, active, informed effort france or otherwise, to foster ex- eralized...
their cultures to display a unique
so

-

r

e m

that

or

m

.

.

production
production,
"

and
and

markehn!' probmarketing n^h'

the

bF the Pe0Ple toward achieving
better schools

tension of voluntary health
surance

,n-

to many more

coverage

1

recommend increases in the
general FHA mortgage insurance

This kind of effort has been peas0"s' especially older, persons -authority; the extension of -.the
spurred by the thousands of con- a-"d those m rural areas. Plans FHA military housing program;
hus?ness na? iHnaH„n in
ferences held in recent months by should be evolved to improve pro- an increase in the authorization
menfnroXment
hal£ a miUion citizens and educa" ^
agamst th,e. aosts o£ Pr0" for Urban Planning grants; in the
rludins militarvnJ !2
tors ill all parts of the country, longed or severe I illness
These special assistance authority of the
vreattv ^nrnved
Tkl 4 i-are culminating in the White House measures will help reduce the dol- Federal National Mortgage'Asson T"
Conference on Education. In that lar barrier between many Amen- elation; and continued support of
come
inereasinvlt
w" Conference, some two thousand cans and the benefits of modern the conege housing program'5 in
EhaU
cnntfnfie in Sv
,
delegates, broadly representative medical care.
...
'a way that will not discourage
£Dau
continue
to
make
^certain 0f the nation, studied together the
The Administration health pro- -private capital from heloing to
inat small Dusineas lias a iair
Through

taken

measures

oDnortunUies

airoan,,

fnr

clafi
j™ '"

a

™

op-

portunity

to

economic

environment

11

compete

may prosper.
in

Message

m>

-

last

'nrJfcnrl°
flrJ

J-T i T

wp1

-Jc

.

year,

1

re-

the

United

States

must

greater effort through their lo-

cai?

state,

and

Federal

gram

Govern-

will

be

submitted-to

the

Congress in detail.

make

The

to

response

human

course,

of

government

embraces,

concerns

other

1

measures

of

of

broad

n
-an ments t0 improve the education of Public interest, and of specialinappraise our youth. This expression from terest to our working men and
|
" the people must now be translated women. The need still exists for
en5cllve"ess into action at all levels of govern- improvement of the Labor Man-

f federal tran3poitation ment.
purposes

tne

and

objec-

committees report.




I

So far as the Federal share of
responsibility is concerned, I urge
that the Congress move
promptly

the needs

-meet

The

*'

+

oi

They concluded that the people
0f
a

1.unoamentainave commended tne
^
lives

problems of the nation's schools,

an

which

in

t

LtvJwf i aJ
T

has

t

rennrf

ri«

and

mended

for

count

last

not

year

only

take

the

into

interests

ac-

of

our

I

colleges.

have

workers

recom-

in

private

industry should be accompanied
by a parallel effort for the welfare
of
government
employees,
We

have

this

field,

tory

life

accomplished

much

in

including a contribuinsurance program;

brotherhood,

Statehood, supported by the
expressed desire of the
Islands' people and by our traditions, would be a shining example
of the American way to the entire
earth. Consequently, I urgently
request this Congress to grant
statehood for Hawaii. Also, in
harmony with the provisions I
last year communicated to the
Senate and House Committees on
Interior and Insular Affairs, I
trust that progress toward statehood for Alaska can be made

peatedly

in this Session.
Progress

full

is

integration

constant
of

our

toward
Indian

covering
policy

citizens into normal community
life. During the past two years
the Administration has provided
school facilities for thousands of

changes, from improved premium

Indian children previously denied

agement Relations Act. The rec- eauitable pay
ommendatiors I submitted to the fringe benefits
Congress

of

legislation

example of a community that ,s
a s^ce®s£u] laborat°ry m human

rranv

needed

increases
program,

and

a

personnel

Volume 183

Number 5498

The Commercial and Financial Chronicle

...

23

(179)
this

opportunity.

tinue

to

creased

We

the

meet

numbers

dren.

Provision

made

for

the

must

needs

of

Indian

should

of

be

adult

self

own

urgent

interest,

to

out

need

the

for

I

again
the

in next 3 years;

Congress

revision

of

the

(3) repeal of sals restrictions

immigration and nationality laws.
Our nation has
always welcomed
immigrants to our shores. The
wisdom of such
shown

by

a

the

domestic sales

that

has been built by

of

line taxes.

immigrants and

descendants

That

policy

must

realistically

the

immigrants.

be

with

to

day

development

Federal

some

wheat, cotton, peanuts, rice,
Message recommends measures to

are:

Message delivered to Con-

partment

of

gress

on

census.

made

to

but

allow

bility in the
one

the

on

for

of

use

sentation

its

if

share,

dividuals from other countries.
amended to'

permit the Secretary of State and
the Attorney General to waive the
requirements of fingerprinting on

past
five-year de¬
pressed

farm

i

their

''nation's

The

message called

should

long

be taken

Detailed

over¬

of

care

recommenda¬

tions for revision of the

immigra-- law with

Congress.

of

happy to

tial

in

progress

immigrants

report

substan¬

the

under

flow

of

the

Refugee
Relief Act of 1953;
however, I
again request this Congress to ap¬
without

prove

further

delay the

urgently needed amendments do
that act which I submitted in the
last Session.

Because

of

from

those

duced.

countries

This

thousands

will

will

be

the

Iron
■.

'.'V

right of suffrage

the

citizens

of

is

bright.

The

march

of

expanding economy,
in

vance

toward

a

The

text

special

collective

us

science,
the

ad¬

security

just peace—in this three¬

movement

creating

people are
standards by which

new

our

the future of the Republic
may be

judged.

'

''

'

the

of

of

session

of the United

than

more

the

para-

dox facing our farm families. Al-

agriculture

is

basic

our

they find their prices
and incomes depressed amid the
nation's greatest prosperity. For
five years their economy has declined.
Unless
corrected, these
reversals

are

in

the

soiritual
Our

strength

dedication

of

to

the

moral

values must be complete in our
dealings abroad and in our rela-

tionships
among
ourselves.
We
have
single-minded devotion to
the

common

Never

must

means

the

good
we

of

\ America.

forgetrthat

well-being,- the

this

pros¬

perity, the security of, all Ameri¬
in every walk of life.

cans

To

the

attainment of these ob¬

jectives, I pledge full energies of
the Administration, as in the Ses¬
sion ahead, it works on a
program
for

submission

to

you,

the

Con¬

gress of the United States.

DWIGHT D.
The White

than

prices

involved.

agriculture

is

dustry;
it
Throughout

our

In

is

America

than

more

and

vigorous.

Efforts

-

this

unremitting.

to; all

of

farm

Many

ago

years

families

a

new

tential

promise
stable

to

Co.

giving

people of a
dependable future

wartime

Ga.
have

—

farm

inheritance

removed

from

Loan

economy.

of

farm

families.

Credit

<

branch office at 1242 First Avenue
under the management of

Harry

Sheldon.




costs

Thus

is

price-cost

severe

farm peo-

our

g£&J3£*!S> o£ g°vernment

The

return

of

Administration
assistance

increased

and

funds

the farm econo¬
distortions rooted
in

from

my

wartime
our

needs

people

,

thus

and

in

enable

agriculture

to

achievTorosoeHtv^in^o'doing
acmeve...prosperity, in so doing

to"stutter height/5

the
to

rural

tax

for

re-

work; initia-

+V^

The

means

Costs

g

„nnl

®

widen

to

and
be

cut

reduce

markets.

and

produc¬

tion must be better balanced with
,

,

prospective needs,
The

Of

shadow

difficulties that
farm problem,
surpluses
over-

many

mountainous

the

everything else.

surpluses

consist

produced

in

of

Today's

commodities

volume

a

impera-

tively needed in wartime but
in

peacetime

prices and in the

at

un¬

the

same quan-

tity

p,ain fact is that wartime

production

incentives

were

too

long continued.
past

three

years,

commodities in a value of more
than $4 billion far more than in
a!?y comparable period in recent

history.
But these disposal efforts have
not been able to keep pace with

the

problem.

posal

find

For

themselves

each

bushel-

in

ever-growing
mounting accumulations. Were it not for the
Government's
bulging stocks

danger

from

the

this Ad¬

bility in agriculture, work was
begun immediately on what beacfrinii+nrai Ant
the Agricultural Act nf io^d.
of 1954.

developed and passed

was

with bipartisan support, as all our

agricultural legislation should be.

/'The 1954 law brought realism
the

of

use

the

essential

tool

of

price supports. It applied the
principle of price * flexibility to
help keep commodity supplies in
balance with markets. That
prin¬
ciple is sound and essential to a

and

the

to

the

to

accumulated

potential

mar¬

kets.

Second, producers of other crops
and

of livestock

must be

relieved

diverted from surplus crops.

Third, lands poorly suited to til¬

well-rounded farm
two reasons,

For

program.

the 1954 law has not

yet been able to make its potential
contribution to solving our farm
troubles. First, the law began to
take hold only with the harvests
of 1955; it has not yet had the
op¬
portunity to be effective. Second,

the

operation of the

smothered

under

law

new

is

surpluses

amassed

by the old program.
The attack on the surplus must
go forward in full recognition of
fact

that farm products
actually marketed when

not

livered

to

house

A

is

held

and

ernment.

not

a

market.

ware¬

the

Even

most storable commodities cannot
be added forever to Government

granaries,

nor

held.

is

they

be

in¬

Ultimately

the

can

be used.

roust

unthinkable

to

destroy

food: Instead, we must move these
stocks into domestic
consumption
or

dispose of them abroad. Neither

route under present conditions of¬
fers
the
results often expected.

always
compete
directly
farmers are trying to
abroad in quantities
enough to remedy present

with

difficulties,

thev

world prices and

friends

prices
To

and

shatter

trade, injure

sure,

the

surplus

and

domestic

outlets for

some

abroad.

amply
home

our

exist

both

at

foreign market

of

home

But-experience
proved that neither

nor

has
the

can, un¬

present conditions, readily ab¬

sorb

the

tremendous

depressing
tive.

We

our
new

stocks

now

agriculture.
action is impera¬

must

stop encouraging
the production of surpluses.
We
must stop shifting acres from one
crop to another, when such shifts
result in new surpluses. Nor can
crop problems be converted into
millstones weighing
down upon
the producers of livestock.
Remedies

hastened

be

bank

through
I

program.

are

needed now, and

it is up to the Administration and
the
Congress
to
provide
them

swiftly. As we seek to go for¬
ward, we must not go back to old
that have failed utterly
to protect farm families.

programs

"Tb^caUef[he

may be caned tn~ aciec gc

%

program.

The second

-

attack

eserve

part is

long-range

a

achieve better land

to

and protect farmers and

use

ranchers

from the effects of production on

already diverted.

acres

called

the

It

may

conservation

be

reserve

program.
The Acreage Reserve Program

A.

I

that the Congress

recommend

consider
reduction

additional

voluntary

a

the

in

of

acreage

cer¬

tain crops which today are in seri¬
ous

surplus—wheat,

and

rice.

In

cotton,

corn

considering the application of

this

to each of these
the Congress will wish to
special attention to their
distinctive
problems—notably in
program

crops,

accord

the

of corn—as set forth later

case

in this message.
do

not propose this program
device to empty Government

I
a

warehouses so they may be filled
again. There is, therefore, a basic
corollary to the acreage reserve

in future years we must
plague, farm programs
encourage the build¬
ing-up of new price-depressing
surpluses.
What I here propose is essen¬
program;

avoid,

that

as a

would

tially

a

As

necessary

deferred-production plan.
part of the vol¬
untary acreage reduction, it is es¬
a

sential to protect
It would

come.

the farmer's in¬

be

grossly unfaif
require farmers to bear the full
burdens of this readjustment. Just
to

other

as

readjustments from

shouldered

were

in

part by the nation

war

considerable

as

whole,

a

so

this.

should

In the

of wheat and

case

cotton,
voluntary
possibly

for ovr»mple. I look to

a

to

equivalent

one-fifth of the acreage otherwise

permitted by allotments—perhaps
12,000.000 acres of wheat and 3,000,000

cotton.

of

should

It

be

practical to include wheat already
copdeH

the

if

soil,

it

js

incorporated

green

as

other

accepted

would

make

it

manure

with

of

practices.
possible for

by

This,
more

farmers to enter the program im¬

mediately

thereby

and

to work down the

once

Administrative
needed

to

start at
surplus.
,

discretion
that

assure

the

of reduction in different

is

rates

areas are

related to the supply and demand
conditions
for
different
grades
and classes. The farmer'^ coopera¬
tion in this temporary program
must not
age

impair his historic acre¬
Rights of tenant

allotments.

farmers
should

wheat

■

must

and

continue
years,

huge

be

some

I

reduction

in

plantings

cotton

for

to

three

which

during

crop

protected.

the

exoect

four

or

time

these

should de-

carry-overs

cline to normal levels.

with

maximum speed, for delay
only aggravate and multiply
difficulties
already
sorely
harassing millions of our rural
people.

a

.:/■ </

In

return

for

their

can

the

soil

recommend

/ The first is designed to meet
the immediate need to reduce the

I

recommend, therefore, the following nine-point program. I urge
the Congress to pass this program

can

a

soil bank of two parts.

reduction

undermine

well.

as

be

would

excessive

.These essential adjustments
all

crops

Moved

unneeded

retired from cultivation.

as

by the Gov¬

Government

and

are

de¬

producing
subject to

now

wind and water erosion, must be

•

Clearly

'

During'' the

ago

pamp
came

der

The

of hog pro¬

ministration assumed its responsi¬

large

the

aggravate

ies of the support program, today

expanded disactivities for surplus farm

the present plight
ducers.

sell.

Surplus

same

crop

to

most

The Main Problem

provisions of benefit to farm

people; increased storage facilities; upstream. soil conservation
greatly

and

Today,

Surpluses moved domestically al¬

Farmers, the intended beneficiar-

programs:

surplus

for instance, has contributed

cess,

It

clear.

needed to

are

must

are

both

stocks

crops

*

requirements

to aid low

programs

justed

lage,

or

stockpiles

families; adoption of

new

into

definitely

Tr__J

equivalent sold, one and a half
have replaced it in the stockpiles,

of

farm

he produces, nearly
every farmer is adversely affected
by our surpluses. The whole proc-

the

We must free

the

control; expansion of soil

conservation

tion

a

drives

programs

protecticn have been extended to

income farm

Orvis

opened

a

which

below.

from which

high

over-sun-

mounting

ag

from

up

and

there has been no lack of effort
to get .rid of surplus stocks. Dishave been substantially improved,;- Posal efforts have been diligent
enabling many more farmers to and .vigorous. Vast quantities have
acquire family-sized farms and to been removed
™ost °f them
improve their farms and homes. ■^lven away«- ^ the past three
The
benefits of Social ' Security
years we have found outlets for
surpluses^, is

grams;

Orvis Bros. Branch
&

was

farm

our

and

the

once

thereby

markets,

ZL/iHilf

Two1-'.marketable

law

cnacted, designed to gear agricultural production incentives to po-

search and extension

COLUMBUS,

been

electrification and telephone pro-

January 5, 1956

Brothers

..

value

have

farm

new

•

,

have

goal

permanent

live¬

must be relieved

1+u

t

long

life.

,

toward

too

an

commodities

prices

generated

history the fam¬

,

Txr

Farm

EISENHOWER

in-

an

of

way

a

in¬

and

ily farm has given strength and
vitality to our entire social order.
We must keep it healthy

farmer

House,

have
'

.

surpluses

y

laid in the past three years.

nation.

..

'down

people,

are

market

record

Current

.

threat to the well-being of all our

matched

continuing growth

.

ply of

direct

a

foundations

a

,

New

more

are;

°

—

industry,

Eut

incentives

—Rising costs
capital requirements,

problem be¬

no

efficient

First, future production of crops
greatest surplus must be ad¬

stock

into
and

Third

squeeze

Congress demands

economic

These

causes.

production and near-record

force

President's

Progress, however, will be real¬
ized
only as it
is
more
than
by

the

follows:

attention

though

problems

understanding of

harvests piled on top of previously accumulated carryovers;

direct

u

Congress

this

In

been

:

ses¬

crop

to

States:

,

fold

and

well-being

message

the

To

comes

To conclude: the vista before

the

TTr^n

+,

the

to

plight

otherwise

^

the

District of Columbia.
1

the

in

an

,

threat

urgent

the

legisla-

nation.

fore the

again I ask the Congress
to join with me in
demonstrating
our belief in the
right of suffrage.
I renew my request that the
prin¬
ciple of self-government be ex¬
to

farm

new

farmers'

openings

Once

and

the

ate

eliminate

available

Curtain.

granted

and

nine-point
farm program designed to allevi-

make

behind

his recommendations

contained

unfilled

of

from

tended

tion

re¬

which I recommend be distributed
to
Greece and Italy and to es¬
capees

altered

Second

stock

the

high
prosperity in
Germany and
Austria, the number of emigrants

this

these

•

Production

—

continued;
Eisenhower

maxi-

speed

for

clear

a

production

Pres.

con¬

age

thrown

That act

principal

First

into

enact

rrum

am

in

prompt

distortions, the result of war-time

Congress

upon

to

tion laws will be submitted to the

I

require

;

/ Remedies

pros¬

and

problems

demand

the

changes in the law

succeed in gearing production
prospective markets at fair
prices. A three-pronged attack ia

to

needed.

acreage

When three years

are, persistent and critical

sion.

ndustry"

amidst

perity."

are

and

basic

"our

greatest

porary

promptly.

interest

markets—these

Congressional action

state

of

expanded

vances

the

reciprocal
basis
for
persons
coming to this country for tem¬
visits.
This
and
other

a

due

the

in

overseas

repre-

Yet, beneficial though these ad¬

responsible
lor

of

our

of excessive production from acre¬

agriculture.

use

be

10, reviewed the
accomplishments of

Agriculture

described the
factors held

so

the vacancies may be made avail¬
able for the use oi: qualified in¬

The law should

Jan.

De-

our

other advances have permanently
reinforced the foundations of all

quotas

country does not

Eisenhower's

today
surpluses so
program of 1954

off

basic

been

past farm leg¬
islation
and

flexi¬

hamper

pressing need

work
our

ported crops have been planted to
other crops.
These crops have

encouraging

greater

that

most

can

in

submit to drastic

trols

should

be

have

shores.

our

management. Even these controls
have been self-defeating, because
acres
diverted
from
price-sup¬

latest, the

Provision

products

Foreign

their prices have declined.

strengthening

census

in¬

have

to

that

almost without regard to the live¬

products;

try annually be based not

-

(6)

assure

special

1950

been

exports

is

lengthened. Our farmers have had

financing.

Farm

1920

Foreign

Our

Steadily this chain of events has

sugar,

I recommend that the number
of persons admitted to this coun¬

the

has

The Soil Bank

less dam-

lost.

American

been attracted to

gaso¬

corn,

been

production

creased.

declined.

recommenda¬

program

credit to farmers unable to obtain
private
President

farm

Commodi.iss singled out for altered treatment
by

President

conditions in mind.

on

markets^have

to

permitted;

now

no

aging^_Both at home and abroad

farmers;
foreign countries; (5) permit

prices lower than that

milk and livestock.

continued

present

Other consequences of past farm

to individual

tion; and (7) exemption of farmers from

America

the

at

renewal of previous rural

policy is clearly

fact

(2) limiting payments

more

products today.

programs have been

Proposals adding to existing legislation to stem deteriorating
agricultural condition include (1) withdrawal of
surplus-pro¬
ducing land into soil-saving crops at a cost of over $1 billion

In keeping with our
responsi¬
bility of world leadership and in

point

for their

Message In Foil Text

schooling in earlier

years was neglected.

our

farmers would be getting far

President's Special Farm

in¬

chil¬

also

education

Indians whose

con¬

of

participation
serve

in

program

the

voluntary

acreage

re¬

cooperating farm-

Continued

on

page

2<l

24

The Commercial and Financial Chronicle...

(180)

Continued

from

Objectives For 1956

23

page

The

that

the

President's

Special Farm
Message In Full Text
Under the pressures of war and
the production incentives contin-

based

the
I

the

normal

withheld in this reserve,

acres

available

made

be

certifi-

these

that

recommend

cates

certificates

allocated

on

to

co-

operating farmers through their
county agricultural stabilization
committees
for

time

harvest

normal

at

crop.
The certifi¬
negotiable so farmers
can
convert them to cash.
They
will be redeemable by the Com¬

each

cates will be

modity Credit Corporation in cash,
or in kind at specified rates.
I

further

recommend

legislation provide that each par¬
ticipating farmer contract to refrain from
cropping or grazing
any land he puts in the acreage
reserve.

By so reducing crop production,
commodities now in Government

ownership

be used to supply
market needs up to a proportion-

ate

can

Thus

amount.

Commodity

bulging
Corporation

Credit

stocks

the

be

correspondingly
depressing
market prices.

can

worked

without

down

current

Disposal Administrator

may

and trees.

age
In

greater

lesser degree this

problem exists throughout the nation. Continued cropping of these
lands results, on the one hand, in
wastage of soil
and water resources, and

duction

the other, in

on

commodities

of

pro-

in

now

the

will relate to all activities of the

He will agree

Today the nation does not need
.

_

_7

.

country's

ahead, except that they will

years

for

and

today

the

program

will

000,000

be

invested

reserve

1956,

year

in

The

into

und.e^

addition
„_f.

l0.n Pr°8ram

wisely to safeguard our prec ious
heritage of food-producing 1 re_

the

In

the

return

serve

conservation

so

will contribute material-

program

The

will

program

A

farmer,

ment

of

100

example,
80
20

in

acres

put

the

wheat, for
choose to plant only

and

the

acreage

remaining

any

from the 20

crop

put into the

acres

not be af¬

He will agree not to graze

harvest

or

His

reserve.

acreage allotment will

fected.

allot¬

an

of

may

acres

this

operate

with

reserve.

The

end

has

product of this
greatly en-

been

larged
supplies
of
and
lower
prices for hogs, cattle, and dairy
and

poultry products. Producers
In return for this cooperation of
fruit, vegetables
and
other
in the temporary acreage reduc- crops
have been adversely aftion

he will receive a
certificate. The certifi¬

program,

cashable
cate

will

of

age

be

the

would

equal to

value of

have

will

age

level

the

normally

from the 20

acres.

be

percentincentive

an

sufficiently high to

This

assure

the program.

of

success

he

crop

deferred

The proposed conservation

reserves

lem

of

plan

to

make

major

a

solving this prob-

diverted

bring

these

large rewards:

Ses anTwlt^
measures.

needing conservation
a™
Any farmer, would be

surplus16 SUrPlUS t0 r6dUCe the
It

will

be

financed

with

com-

modities

already owned and paid
for by the Government. Time
and
shrinkage, storage and other costs
eroding

are

value

of

the

present

stocks.

Conse¬

away

these

quently, the real net
Government
other

will be

to

into

consideration

substantially less than
cost

apparent

in

payments

I

the

\

emphasize

specifically

—

made

certificates.

on

the

faking these and

—

facts

cost

this

is

program

intended

produces

farm
that

be

the

or

is

area

located.

some

I

25,000,000

lands
are

renewable
our

forest

under

in

is

man¬

and

,

a

One-third of

resource.
area

good

constant

a

farm

wood-

lands. From this source can come
a large share of the lumber, pulpwood and other forest products
1° meet the growing needs of our

to

„

are

many virtues

in the

plan.
It will
mg

ci

of

».

i

urpluses,

.

precondition

cessful operation of
program,

It will

for
a

Government

>.

the

th*

sue-,

sound farm
;

ahnnt

running

«1

general welfare, that -will

must

-

improved resource use.
I
propose, therefore, that the Gov-

on ,costs

that

nnn nnn

follow

from

and- ernment

massive

storage- -costs

imn0rtant to

of

vation

Law

hand.
be

soil

bank

of

reduce

stocks

In

Congress

relief

the

influence

carry-overs.

a

fair

share

use,

up

to

the

of

specified

a

the

conser-

per

„—

surpluses, diverted

sured
acres

of

Surplus

income
in

from
a

programs.

proposals

substantial

have

wholly in

are

keeping with these

principles

Whenever possible will
over

to

supports
continue

will

or

eliminate

ble

It

to

without

support
IpvpIq

these
nncci-

accumulating

new

In keeping with this latter
prin¬
ciple, I am advised by the Secre¬

huge
480

'

year

reserve

of crop

fail-

thus-assure
program.

ease

annrehension

theT
his

of

success

Further,

reorganizes

will

for soybeans and flaxseed
as

to warrant

an

in

crops

in 1956.

levels will

are now

increase in

the price support levels

for these

The higher support

be

announced

shortly.

.

,

as

farm

the

the farmer
along these

soil-conserving lines,I
-

peacetime

mar-

kets-

'

The Conservation Reserve
The second

the

recOm-

gram—affects

pluses

and

both

reserve

today's;

tomorrow's

growing population.




length of time needed
the

new

use

to

establish

of the land. The Coiii-

mestic

000.'

market

These

reached

u

.

between

production

and

consumption,

Legislation already has
passed the Senate and is pending
in the House of Representatives
which would exempt from mar-

on

their

have chosen not to observe
■

own

farms all the wheat

they raise. Because of the failure
to pass this legislation last year,
the Department of

Agriculture has
by law to hail

compelled
the

before

farmers

courts

only

offense

tion.

whose

raise and
feed wheat outside their quotas.
Again the Aumuiiamiuuii urges
Administration
Correction

to

was

enactmentof this problem
°£ thls legisla"

should be delayed no longer.

Historically
a
significant
of the annual wheat

(b)

proportion

has been used for livestock

The quantity fed in pre-

World War II years ranged .fr°in
100,000,000 to 150,000,000 bushels
year, about twice the quantity

a

*ec* *n more recent years. This
reduced consumption has aggravated the surplus burden.

that the Congress

I recommend
..

.,

,.

.

.

.

consideration to authorizing
the annual sale for feeding purgive

EoseV®J

Secretary of Agriculture,

of^Iim-

Ir> recently ears many farmers ited quantities of Commodity
acre-

age. allotments on cortf; Consider-

iftMs

Credit Corporation wheat of lesS
desirable milling quality, .The authorized

sale

price should reflect

were

made with dud

for the adverse effect they
might have on prices received by
'
Domes-

pro-

surneeds of

mining

the

ments.

Here,

historic

addi¬

tional

$196,000,000. Overseas dis¬
posals, through barter and dona¬
for

constructive

purposes,

apparent that price supports aloh'e, of other feed

of

the

pay-

as

tion

in

a

corn

acreage

acreage

allotments.

I recommend, therefore, that the
Congress give serious considera¬
tion to adapting the acreage reserve program to corn.

difficulty must be

vestment in

corn

modities

increased

by

about $1^-

000,000,000 during the fiscal

year,

allotment

(c)

td

There are

grains.

I recommend legislation to

program.

$1,100,000,000. In spite of
vigorous efforts, the Commodity
Credit Corporation incom-

as

priced

use more»wheat
*he legal maximum, are an insuf- for feed in feed-deficit areas disficient inducement for participa- tant from the corn belt.

these

price-supported

on

dten at levels closely approaching opportunities to

totaled

amount

in the acreage reserve program,
I would not let
the farmer's cooperation
-impair
his

an

precautions being exercised

It'Is the effect of such sales

$403,000,eligible fbi- price support.

care

tions

^ ^

part of the soil bank

conservation

Great

also, both for current
adjustments
and
for
long-term

.

-

c?.l 1953 to more than $1,400,000,000 in fiscal 1954,' and to more

totaled

with

accumu¬

the

and

program

feed.

our

,

sales.

production

an

program, described later,
will also help. Other changes are

cr°P

present farm program,
the supply and demand conditions

such

mce

under

Plains

In

—i

burdened

serve

parts of

respect to other commodity
tonseed oil and meal, flaxseed and
linseed oil and seeds. Surplus dis- programs I submit the following
posals by the Commodity Credit specific suggestions: ;
Corporation have risen from just a 'corN
y
•
*
over half a billion dollars in fis—
'
~
*

nnnnnn

dif¬

are

is particularly well
wheat, since this crop
in large acreage and is

to

grown

tary of Agriculture that, as a direct result of operation of various

per¬

supply food for

our

which

on

price-depressing surpluses.

Commodity
Credit
Corporation
stocks of butter, dried milk, cot-

Minn

problems of wheat

program, will make a major
contribution toward their solution.

been

td

the

'

B

con¬

discretionary,

are

nrices at the hifdipst

on

must

reductions

ease

farmers; and

For commodities

price

sur¬

Law

The

ficult and complex. The proposed
soil
bank, with its acreage re¬

#6itea£e the feeding value of the wheat,

~

ure.

1955 harvest.

set fortJl in my special agricul- keting quotas those producers
tural message of two years ago. who use for feed, food or seed

In

has

disposals

acre-

keeping with
the
fundamental
principles of sound farm policy

price-de¬

these

Public

acres,

the conservation

provide
since

even

the

B WHEAT

in excess of a full
year's needs. The conservation re¬

he 1955

insurance

discretionary

producers would

corn

eligible for price supports at a
substantially above the mar¬
price which prevailed during

balance

and

reserve

reserve

with it.

—

discre¬

a

lated carryover

the prob¬

on

day- '
It will

on

This program

..

pay

-establishing

and put price

corn

corn

necessary

age

provided basic
legislation for this purpose.' The
problem still exists, but not for
lack of vigorous efforts»to deal
*

an

acreage

level
ket

by the soil bank through the

(b)

to

from

of

the Administration:

needed

are

But< additional

obtained

the

consider

eliminate

allotments and with

unbalanced production and unwise
land use is carried in
major part

uu-

additions

to

and

pressing

re¬

serve

304

(

lems

Production adjustments effected
current

realize
recom¬

480.

Our frontal attack

aeneral

a

to

us

Programs

r-

Surplus Disposal

pluses,

to

for

choose

acreage

tionary basis comparable with the
other feed grains. With no acreage

now

trols

mitted

itself

crush-

holdings-costs

runnina

crops.*

Government

encourage this -transfer in order
the es-fo achieve the
advantages to the

.

reduce

unproductive
are
are

the

remove

nt

burden

sential

cultivated
The

help

among
aiixwus

enable

by this leg¬

Strengthening Commodity

reduce the total

W1C

the

should

the

wish- to

may

suited

(a)

halt

surplus

to

for convthe Con-

program

alternative;

is

in

crops

To

continue to

by

Forest

of

opportunities I
repeal of section

Public

hnoZve °the ^anc'e
f' P^
the balance among dlf"
ferent farm commodities, both of

brought into the conservation

agement

provisions

such

mend

hope

orovide, expanding economy. The conserto farmers while the vation reserve can mean
producessential adjustment in stocks is five and protective tree cover for
being accomplished.
less productive lands now used for
There

islation.

thf tTj

seYeral ye„,

reserve.

serve

Congress

authorize

be

These

would

acres

the
to

supports, all

on

where his

would

safeguards,

plus carrying charges.

to countries excluded

improvement in farm prices.

income

an

for

program

h

legislation to

proper

friendly nations only. Oppor¬
tunities clearly
to our interest
may develop in the future to sell

diverted acres,
combination with the acreage

hi

recommend

disposal legislation permit export
dispositions of Government stocks

lus to livestock production, and
consequent low livestock prices,
induced by feed-grain production
on diverted acres,
It
similarly provide protection for producers of the many
small-acreage crops whose markets are. threatened by even a few

U1I„1UVC

most

rrmncnrcc

of

incentive

to

contract

voluntarily with the
Government to shift into foraee

I

Present

generations.

reserve

^

acres.

If

supports

I propose that farmers be asked

,0

iands
lands

production

also

can

contribution

harvested

This

at

set

percent¬

a

fected.

has

the

plies of hogs and fed cattle.

els

will

program

It will increase our supply of
production from the much-needed farm-grown forest
today diverted from sur- products.
plus crops is now seriously affectIt will help hold
rain and
ing other segments of our agri- snow where they fall and make
culture.
The
acreage
of feed possible more ponds and resergrains, notably oats, barley and voirs on the farm,
grain
sorghums,
has
been
inIt will reduce the undue stimu-

diversion

Reduce

farmers to produce excessive sup¬

sales at not less than support lev¬

ly to that end.

creased.

(c)

allotments for

permit, under

re-

acres

way:

restriction

disadvantage

mar*

higher

a

and

crop,

except

blocking
sales
that
would
clearly have been advantageous to

Further,

IIow Plan Will Operate

This

possible

,

stocks

carryover

level of price support than would
otherwise prevail
for the
1956

gress

may

we

market

Make

both farmers and the Government

It will result in improved use
hand on an
enriched legacy to future genera- of soil and water resources for
tions.
The conservation reserve the benefit of this and future
sources

domestic

re-

progr|m for cora wouId:
:.

(b)

not

both.

objective

*

.

by

coming

year.

is

tomorrow

for

its

in both programs, the acreage
serve

charges.

$250,000,000 pro¬
vided for the agricultural conser-

achieve

to

of reducing the corn surplus. With
broad and effective participation,

prices equal to at least 105%
of the support price plus carrying

,

the

acreage

program

of

at

the

effective par¬

agriculiuraTprod! which currently depre3s the
ket,

will be in worked to the

program

to

the

and
corn

(a) Reduce the

price-supported
commodities held by the Govern¬
ment cannot now
by law be sold

the

over

bulk

are

producers in
allotment program is
imperative for the acreage reserve
an

u

quantities of nonperishable stra¬
tegic materials. Additional legis¬
lation may be needed in this field.

in

during the
and a total

of about $1,000,000,000

-n

wheat and cotton

on

Thus, broad
ticipation by

ucts, which deteriorate and are
costly
to
store,
for
increased

My estimate is that if the Congress
acts in time, some $350,conservation

the

used

are

not feasible.

.

^

™

1956.

steadily increase. V/e do know,
however, that the sound course
both

into

come

with

abundant production.

sought to barter

significant
part of the desired 25,000,000 acres
can

administrator

associated

°f^C£mm^dilyour curCredit

rent

a

.

accurately predict
food needs in the

cannot

that

so

of

Secretary.

Corporation stocks and of

next three years. Sums expended

these acres in harvested crops.

our

delay

duties

department

sound soil and water

conservation on these acres, and
to refrain from returning them
to crop production, and from graz-

calendar

surplus.

We

will

The

sible

or

who

to the

have come into cultivation which ing them for a specified period.
wise land use and sound conservaj urge the Congress to approve
tion would have reserved to for- this program with the least pos-

the

that

he

report directly

to carry out

ued in postwar years, large areas

he

be

that

stubborn, the
Agriculture is ap¬

cropland cultivated.

vields of

will

land

problem continues

serious and

Secretary of
pointing an Agricultural Surplus

con¬

will be in addi¬

reserve

any

this

so

put into the acreage reserve, and
will
represent
a
reduction
in

for commodities whose value will

ers

to

into

put

acres

servation
tion

Because the
to be

farmer, in turn, will agree

Thursday, January 12, 1956

One grave
Un-

overcome.

like wheat and cotton, most of the
crop

where
reason,

it

is
is

fedj

on

the

expand the noncommercial wheat
area
so

beyond the twelve states

designated.

eliminate
controls
,

farms

produced.
For this
marketing quotas such as

.

.

and marketing

acreage

for

many
„

f

farmers
,

who

L.

'

-

own

now

This action would

,

,,

farms most of the wheat they

raise,

and

who

contribute

little

Volume 183

Number 5498... The Commercial and Financial Chronicle

to commercial supplies or surplus

term

stocks,

ducers,

(d) I recommend extension for
one
year
of
legislation
which
exempts durum wheat from acre¬

and

age

should

be

not

restricted.
We

tiations
the

participating

are

for

possible

International

in

nego¬

renewal

of

Wheat

Agree¬
will terminate July

ment, which

1, 1956, unless it is renewed.
C.

in

of

wheat, the
acreage reserve program is espe¬
cially well-suited to cotton. This
case

as well is burdened
accumulated carry-over in

by

crop

The

of

a full year's requirements. Other
legislative changes for cotton, in

addition to the soil bank program,
that
require
consideration
are
these:

peanut

has

the basis of the average
and quality of the crop.
For cotton a special provision of

puted
grade

on

law

designates middling seveneights inch cotton as the standard
grade for parity calculations and
price support. Currently less than
5% of cotton production is of this
grade or lower.
I

urge

amendment

an

to

pro¬

vide for cotton, as for other crops,
the average grade and qual¬

that

ity of the
parity-price

be

crop

for

utilized

computations.

recommendation

in

is,

This

general

help

pro¬

facilitate the smooth flow of live¬

this

ogy

Dollar Limit

support

will

price.

recommend

absorb

of

F.

The

development

nomic

allotment.

legislation
of

to

1948,

promptly

be

sulted

amended,

sugar

MILK

milk

of

ask

limit
to

Consumption

use

should

Rural

have

The shortcomings

of

acre¬

trolling production
evident.

In

1955,

cotton

on

allotment calculated

are

acreage

an

on

to

schools

are

been

see

ried

are

tion incentive levels.

When
be

production controls must

applied

and

as

a

result

of supply

market conditions,

it is im¬

perative to have controls that
effective.
duced
age

As

surpluses

are

through the proposed

reserve

bank

and

new

accumulations

through

other

I

families
small

recommend

to

use

that the

funds

$50,000,000

a year

soil

For

means,

parts

will

from

allotments

tity

on

cotton

allotments,

the

with

1957.:1.}^he

of

quan¬

beginning

with

:

alleviate

and

producers

many

I have al¬

could well consider similar action

much

for

other

crops

under marketing

for
of

verted

law, ] accumulated
rice have required a

supplies

of
40% reduction in acreage for 1956
compared
cline in

with

1954,

and

a

de¬

the support level to 75%

of parity.
Rice production in this country
is the most efficient in the world.
our rice is rapidly be¬
ing priced out of world markets

However,
is

being diverted into Gov¬
ernment warehouses and even into
the feed

C/

markets," "

There

two

are

of

courses

should

Congress

alternative

action

to .which

give

considera¬

tion:

1.

.

age

t

Inclusion of rice in the
reserve

require
tion

the

continuation

acre¬

This

program.

of

r.

will

produc¬

controls and marketing quo¬

tas.
2.

duction
on

and

rice.

of

existing

marketing

pro¬

controls

Prices could then be sup¬

ported

on

levels

which

a

discretionary basis at

latter

Congress

course

bank

stimulus

to

considers

serve

the




the

long-

farm

families.

rupted.

In

production

already di¬
and,.cotton,
grazing

,.,/■/

„•

work

report containing cer¬

a

/the

•

provid¬
ing a more stable agriculture in
this important regigon. *,

adjust

Such

this

on

•

■

.

'

■

with state

program

leadership

aid

to

low-

:

j-

Not

only the welfare of these
families, but also of the people
as a whole require that this pro¬
gram
go
forward. - Once again,
therefore, I urge the Congress to
•

program

message

recom¬

of April
'

J

1

to market

programs.have

.

Scientific research has been the
of

means

ant

fundamentally

import¬

developments both in agricul¬

ture and industry.

It has resulted

in improved

quality, new and bet¬
techniques, new products, new
markets, new high levels of ma¬
terial well-being for our people,
individual

Most
in

horizons for

new

future.

our

farmers

not

are

position to carry on scientific
Government has

a

to

shared

agriculture

by all the people.
material

needs

future

generations, but it also

can

con¬

tribute in many ways to the fuller
utilization of our present abund¬

must

We

look

for

new

uses

construction

for

fibers

materials

better

merchann

dising methods cooperatively wifh
trade
meet

part jpf

are

the

impact of

heavy marketing.

,

Central-

rand-V

West

of

an

emer¬

a

vast

the *vRocky

of

land

use

this

been

Great

in

been carried
the

For

states

involvedi

and low-cost'1 feed in thd'event of

of

drought

Plains

will^e available when¬

disaster,,strikes.

Increased research

control,

constitute

•

a

Plains

progress.

tween

credit

embrac¬

continuing hazard. For more than
a
year intensive new studies of
conditions and problems peculiar

nature will be provided to
help livestock producers as needed.
emergency

area

erosion, and .-.special prob¬

lems

to

programs

gency

disease

agriculture.
now

institutions,

and

Government

furnishing credit for

are

Administrative

and

legislative

bud¬

changes

being developed in Govern¬

ment

all point toward
assuring
adequate and sympathetic cover¬
age of agricultural credit require-'

ments, which cannot be met
private financial institutions.
made

by

the

Administration

by

Farmers
have

in¬

creased gradually during the past
four years from $212,000,000
to
well

over

$300,000,000,

increase further
sions

for

more

widely

The

the

as

insured

and can
provi¬

new

loans

become

used.

Farm

Credit

Administra-

sion has been reorganized to

farmers

greater

give

its
operation. Further legislation will
proposed to combine the Pro¬
a

voice

in

be

duction

Credit

Federal

made

Corporations

Intermediate

Federal

Land

and

Credit

Bank

loans

by the Farm Credit Admin¬
have

$237,000,000
than

The

increased from.

four

Administration

mined to

supply

to it that

see

of

to

is

year.

deter¬

adequate
remains readily

credit

available

to

ago

years

$400,000,000 last
an

farmers

our

all

at

times.

already have contributed.
must

We

find

markets,

new

Gasoline Tax
One

of

the

costs

is

line.

About

the

farmers'

Federal

operating

tax

on

gaso¬

one-half of the gaso¬

line bought by farmers is used on
the farm.
as

have for tallow in industry or

have followed upon the devel¬

already
has been done through refrigera¬
tion
and
new
processing, tech¬
as

niques,

so

abundance

that the benefits of our
may
be
still
more

distributed.
Marketing
margins have, continued to in¬
crease,
even
while 1 farm prices
have been
declining.
Thus the

widely

farmer's

retail

food

appreciably!

shrunk

prices have changed little,

Retail

lation

I recommend that legis¬

be

passed

relieve

to

farmer of the Federal tax

on

the
pur¬

chases of gasoline so used.
*

*

%

creases

on

region have
The work has

cooperatively be¬

leadership

Agriculture
Council,

the

the

of

10

Department

and; the

which

Great

includes

attain that
important goal. The Secretary of
Agriculture is actively engaged
in an expanded inquiry directed
toward reducing the costs of dis¬
fective

way

help

to

tribution.

which; all practical applica¬

benefits

use

what

we

from

A

or

better

reap

do

not

major frontier of agri¬

lies

culture

In

made is vitally

cannot

We

and

are

plant and animal pests and

diseases.

know.

in

our

laboratories

experimental fields.
the

budget

..

message,

I-will

request the maximum increase in

agricultural

research .funds

can

the

breeding,

to1, define the

that

with the technical manpower

This study will help

respective responsi¬

be

sound

a

efficient agri¬

an

which

" of

has

the

become

world, but also in
fostering
a
sturdy, resourceful,
self-reliant citizenry.
Farm organization and farming
operations are undergoing pro¬
found change as science and tech¬
envy

the

nology rapidly alter the structure
Of agriculture.
Great care must
be exercised that these changes
do not result

in huge corporation

farms

one

on

the

h5nd

or

in

un¬

the basic social and economic unit

of 'agriculture:

effectively used next year

facilities

available.

This

will

Accordingly farm

policy must encourage such farms,
sufficiently large and productive
to provide satisfactions in farm
living equal to those enjoyed bjf
other Americans.

"

'r

if] •) KM
Ibasic scientific, knowledge

tions of science

ages of

This has been

policy—not only in the

development of
culture

■/"•>•'

Our

wise

cial family farm must continue as

nutrition,

region.

and

to lower costs of food
Research is an ef¬

ways

technical people from the states of
on

ated farms.

rewarding subsistence units on the
other. The time-proven commer¬

distribution.

y.;

Historically, agricultural policy
in
this
country has sought to
foster
family-sized
owner-oper¬

impeding
desired
in¬
in consumption. We must

thereby
find

of the

share

has

dollar

important and must be expanded.
This knowledge is essentialrplso
to continue the attack on the rav¬

of

example,

agencies

of

products
that
can
contribute to human welfare, such
as livestock by-products for me¬
dicinal purposes or such as coarse

water

Sales promotion and the

to

financial

agricultural

from

effort

Private

individuals,

ance.

ing, all or part of 10 states, in
which; erratic climate, wind and

this

a

years.

more

of

with

especially true for young
particularly veterans, who
started
farming in recent

have

only can research provide

the

for

widely

are

in
adjust¬
dynamic

is

men,

istration

b|6stepped up to supplyv,jiew and
expanded outlets now being ; den

livestock

associated

since the benefits of research

lated

similarly

investment

agriculture, farmers are experi¬
encing increased need for credit.

Banks.

Mountains, is

the

ments

the

the

re¬

■

and

peace,

making

ter

and

a

making the transition from
to

Home

Research

g^gm rtfwvrip progress * will shortly

development

In
war

Loans

as

.

income farm families,

,V

Pork purchase, pro-

yeloped.

'

getary

transmit to the

will

tain recommendations for

legislation

for

TJie Great Plains Program
beep: undertaken by this Adminis-' /' Between the * prairies of the
k

Congress

I

marketing mechanism,

be

producers

Shortly

we

•

local

and

such

will

demands.,

wheat allotments.

age for

—

essential to bolster prices and

help

long-time

for

to

Credit

This

jU

Provision

cost-sharing commitments' under
the agricultural conservation pro¬
gram, and

part these

Government
Commerce, Labor,
Health,Education • and Welfare,
and Agriculture —are actively at

purchase and diversion programs
are

existing legisla¬

appropriations.

periods, where enact the full
constructive, mended in my
timely and, vigorous Government,
26, 1955,

assistance

(1)

Con¬

-Four departments of the Federal

will safeguard the
beef producers and

-

The

has met only in

states.

Periodically livestock markets
become
glutted and - prices dis¬

ever

petitive market position.
the

soil

would

permit rice
producers to improve their com¬
If

wheat

^against,

of

dairymep.

in

of

acres

Special
Elimination

acreage

from

interests

the

Under

and

feed-grain

Restrictions

RICE

Secretary

i

the

soil bank

D.

the

undue

livestock prices which arise from

using

quotas.

of

the

production and the
downward pressure on

resulting

of

tion include:

Despite the opment of frozen and powdered
handicaps, the interest juice concentrates.
in this program has been so great
We must find new crops offer¬
that pilot work is already under
ing such new opportunities and
way in well over thirty counties
benefits as
are
exemplified by
widely spread throughout the soybeans and sorghums.
United States.
There is activity
We must further improve our
now in more than one-half of the

livestock

Congress

crop

only

activities.

recommendations

to $75,000,000.

program

Establishment
to

the

gress

nificance.

For these reasons the Congress
should consider replacing acreage

modifications

the

types of
heretofore
have

our

income

ready discussed have special sig¬

surplus
must definitely be avoided.

of

benefit

from

8

■

25

resultant

livestock

of the

thereon

degree

3,000,000

Agriculture
for attacking the problems of low-

LIVESTOCK

re¬

larger

limited that the

so

that

of

are

H.

,:''

to

Other desirable

Great Plains.

the

Not
program

2,000,000

On April 26, 1955, I transmitted
to the Congress recommendations

program

increased

11, 1954,

nearly

dominated

through .this

Commodity Credit Corpo¬

ration

of

programs

be extended for two years
beyond
June 30, 1956, with authorization

acre¬

the

of

program

that,

fiscal year.

This is especially true when

prices
supported at wartime produc¬

intact

of one-fourth,
$103,000,000.

of

investigations.

productive farm units. Pro-

duction

the program is car¬

forward

effi¬

to

farm

our

the

other farms is

advancing technology is resulting
in production far out-running ex¬
pectations based on acreage alone.

it that

protection

of

been

more

in
some
states, milk program funds
are
nearing depletion. We must

advised

with

bank,

program

reserve

promptly production
of
crops in surplus and with its con¬
servation reserve program to take
less productive lands out of crops,
will meet in part some
of the
conditions
especially serious in

pointed out that the chief bene¬

ficiaries

participat¬

yield 10,000,000 bales of cotton, nearly 15,000,000 were harvested. Rapidly

to

full

sufficiently high

In my message of Jan.

same

program in the current
school year.

have

be

The

Development Program

bet¬

ing in the
I

farming unit.

or

a

additional

(b)

age allotments as a means of con¬

soil

proposed

acreage

increase

an

total

special responsibility in this area
—and particularly is this the case

I

ter health habits and at the

its

local,

reduce

occurred.

the

give

time promote an enlarged market
for the future.
Several thousand

to

The

and

agencies.

ma¬

ciently operated family farms.

present

We thus contribute

occasionally

individual

increased by over 450,000,000
half pints of milk. This is a
good
a

family farm.

price-support

Congress to consider
placing a dollar limit on the size
of price-support loans to
any one

was

example of constructive

have

I

benefits of this program last
year,
including children in some 7,000
schools in which milk was not

surplus product to meet

the

threat

a

family-operated farms, which are
the bulwark of our agriculture.

gratifying success. Approximately
9,000,000 children had the health

served.

for

such formidable competition with

pro¬

gram provided for in the Agricul¬
tural Act of 1954 has met with

previously

re¬

risk

It is not sound Government policy
to underwrite at public expense

PROGRAM
school

To the

it has
of

individual

of

chinery as it has been functioning,
price-support loans of tremendous
size

second

that

removal

bilities

State and Federal

(2) Relaxation of planting re¬
quirements to maintain base acre¬

businesses by reason
supports, it is much less

Under

possible in planning their operationsl
SCHOOL

the

eco¬

farm

interest of farm

to the traditional

fore

Senate.

more

efficient

more

wholesome and constitutes

need.

the

of

with

farm

of price

as

SPECIAL

in

large

completed.

much advance notice

as

in

meas¬

associated

degree, however,

the

renew

as

eign suppliers and the entire

The

and

is

units it is in the

The Congress is aware of the need
to give producers, as well as for¬

G.

as

families and of the nation.

Act

should

this trend

the

pro¬

SUGAR

Sugar

farms

agriculture,

that

visions for the minimum national
acreage

of

ured by capital or by
acres, has
rapidly increased. To the degree

at

Consequently,

elimination

Price

on

size

average

American

peanuts

more

markets

The

will

acreage

produce

the

consumption.

Supports

improving technol¬

minimum

normally
than

into

serious

terms, in keeping with the intent
of legislation already pending be¬

;

products

price-stabilization

experienced

With

acreage.

industry,
(a) For all crops except cotton,
price support legislation requires
that parity prices shall be com¬

use
of by-prod¬
improved marketing will
lower production costs and

ucts and

difficulties stemming in part from
a fixed national
minimum peanut

an

excess

reserve

profitable

more

pro¬

consider

stock

program

I

the

acreage

rice

to

PEANUTS

the

COTTON
As

the

of

wish

may

gram to make the transition.
E.

marketing controls. This
is in short supply

production

interest

it

of

use

type of wheat
and

best

(181)

and
be

In

so

far

agriculture

'

'f;1

.

the

as

of

problems

best be solved by
action, Government

can

Government

should! accept the responsibility.
,

The proper role of Government,

however,

is that

of partner with

the farmer—never his

master. By

possible means we must de¬
velop and promote that partner¬

every

ship—to the end that agriculture
may

continue to be a sound, en¬

during foundation for our econ¬
omy and that farm living may be
a
profitable and satisfying ex¬
perience.

,

/

Assisted

people, both
ernment,

.

by

I

.

;

1

k

experienced

farm

in and out of Gov¬
have been earnestly

Continued

on

page

26

:

26

The Commercial and Financial Chronicle...

(182)

Continued

from page 25

Continued

/

from

funds.

14

page

.

.

The modern

.

investment

personal

Thursday, January 12, 1956

manner

of

further

biased

in

cotton, rice, and tobacco.
It is
probably unreasonable to expect
again, the very high yields of

is

restrictions

acreage

on

...

favor of

President's

Special
Farm Message
studying

this

months.

problem

for

believe that

I

Conference Board Forum
Economists Mostly

many

should wind

in

a

program,

consistent with

way

traditions.
or

offers

It

folk

that kind of specious practice.
Farmers expect programs that

forward-looking, economically

are

Discusses

reducing the
bringing production

markets into balance at fair

sur¬

and

prices,

...

Trade

And

that

MR.

in

1956

not

this

its

be dependent

be

of

will

the degree of
farmer participation and upon a
determination

common

together

in

spirit, this

the

and

to

need

action

With

agri¬

these

recommendations,

the interest of

in

legislative
farm

our

ple, in the interest of

every

peo¬

Amer¬

ican citizen.

.

.

is

recognized

am

forecasting

all

a

international

don't think I
in

major
healthy and
trade.

unduly optimistic
return to gold by

a

within
the

three

"cold"

years,

pro-

,

.

with

H.

Crerie

and

Co.,

price

of

$1.50

Inc.

is

share.

per

The company intends to use the
proceeds of the sale of this stock
for

the

and

operating

known
the

of

purpose

as

a

constructing

sports

a

I

do

year

chines

of

use

with

jai alai.

Bet¬

totalizers

ma¬

will

be

to

be

the

best

game
out

alai

is

the

national

expansion

-company,
in
its franchise is

have

1946.

.

construct

fronton

a

new

of

shall

include

modations

for

seating

fashion

meetings,
taurant

a

and

shows,

large first
cocktail

ample parking

Morgan

securities

business from offices at 2412
Mag¬
Boulevard, under the firm
name of E. B. Arnett
Company.

With Hamiltoh Managem't
(Special to The Financial Chronicle)

BOSTON, Mass.—Thornton

Fre¬

Street.

be

slightly

and

In

outlays
sponse
more

joined

the

staff

S

O

m

C.
of

dential

funds

Milot

Kidder,

than

announce-

expenditures,
will be

internally.

find

.

a

government

likely

the

to

may,

to

of

.

■

areas.

Outlays

for

year.

would not

in

think that

there

If

be

would

increase, if

construction.

.

any,
.

should

...

1956,

I

on

much

in hous-

Consumer

.

show

some

growth.

economic

Year

'■

high

so

hardly
.

.

a

.

United

States

current

high levels,

in

continues
we

the

at
.

.

.

Richard

in

P.

I

1955.

Doherty

or

SUC programs,

in the

Index

exuberance

for

eco-

am

ex¬

shown

concerned

about

.

of

of

j

,/elieve

don>t

is

likely

particular

any

there

is

■■■■■

of

degree.

activity

the

.

.

to

pace

during

probability

that

movements

(in

in

Foresees
Farm
In

Reduction

•

•

in

1956

in

(I ex¬
farm

average

perhaps
the

from

im-

some

low

present

Strains,

"i

*be

This

but;.
in

.

middle

of

,

.

and

He,en Slade

win

to

keep

hold growth
some

reserves

for

con-

.

.

.

im¬

are

a

pres-

be

on

the

the

market influences

ex-

of pension

asset

are

trusts and

the

side

of

holdings

investment

a

very

rate,

Fabricant

.

modest

might

you

bumping

say,

along under the ceiling which, of
Nathan

M.

Koffsky

J <

a

has

course,

the

secular

...

I do

If

tilt represented by

a

increase

that

imagine
more

a

is
that

rapid

national

in

the

case,

I

prices

will

of

rise,

rate

not expect prices paid by farmers or at least a continuation of the
wi^ vary much over the next rapid rate of rise that we have
ment in the
...

expect improve-

parity ratio next

For

conditions,

High

the

in which
output rises at

year.... I do not

securities

•

the
vol¬

could

crops

show

well

s>

',.■!■

fifty-six

second half of the year.

do

Dr

V

Nine¬

.

teen

should

i^esTor

"

before.

were

farmers will likely prevail in the

1956

...

series

plentiful in
the
highest-

for

.

fact

product.

j-ious

.

price!

about.the

lower level of prices received by

^JjjjjUjjjjjUjj^B

'

alsot!

.

longer

shares.

only in

rising as rap¬
idly as they

sup¬

Bargains

grade

economy.

not

since

that

change

operative,

are

our

'

strains de¬

have not been

the

than others.

better

in

a

-

year

that

'in-

signs of

visible

the

ume

picture*;

price

is

physical

yegr; the most
important ele-

Pr1^

spot

great

Price Increases, and

are

year,

For

•

cf
so

series, and in interest-rates series,

first half of

and

extreme

1955)

MR. FABRICANT

veloping

Another

stability

pect)

the

take

strong

a

Probable Readjustment

Income

the

will

is

an

price

1956.

reduction of

a

there

sig¬

to

scattered

undoubtedly

(But)

areas

the

it will be

year,

place.

pres¬

most

coming

Further

.

.

been

If prices will not be quite

.

MR. KOFFSKY

ent legislation
...
If the
present law
remains

no

.

price rises in the

There

plied in

doing

much

unem_

change

.

port levels for

some

groups

for

sure

major

fluctuations,

dustries

that

to

slackening in the

a

business

latter part of

1S

°f wide

with

changes in

no

Taft-Hartley Act.

ployment

^bhb-Yhrient^nn

upward movement for

.

.

strong possibility that the

a

increases

There will be

...

& second

level that there

any assurance

benefits

half of the

have.

promises to be

-

equivalent

labor.

•

prices

tingencies.
activity

rise

any

Price

general level of

the

end.

Fluctuations.:Tevels«

of

.
.

1956. The year

for

resi-

The

.

perience

par-

provement

Stock Market

the market

'

new

a

year

stantial

re-

improve slightly next

balance,

is

one

need

growing

.

skilled, semi-skilled and unskilled

toll-road

'

.

reached

ex-

in

.

how-

discriminating

respect

1

in the
rp.

sector,

rise

(holding)
Consumer

In 1956 we shall find mcreas- where they have
lng emphasls In "eg°tlatl°»s rals" nificant, will be
fng
the
differential
between

0f

We

.

.

more

with

This

gross

the

There will

.

,

the

by

planned

Expects

1955.

year,

.

r-nomic activity in 1956 will hot

which

prices,

1956 should

.

...

for

MISS SLADE

e

machinery and equipment should

O.

Peabody & Co., 75 Federal Street.




the

are

to

.

.

stability in retail food

retail prices within modest limits.

in

not

will apparently

issues.

1956, both in

.

pressure.

: • •

bonds' as a result of disappointing
experience in certain of these

a

schools, better roads and the

further

William

Arthur

to

Financing problems will not

market

and

Canadian

better

expenditures

(Special to The Financial Chronicle)
—

the

ceptionally good

ing

With Kidder, Peabody

have

be

value and volume.

further

BOSTON, Mass.

in

requirements
E.

Barr, Louis J. Covino, J. Arthur
Hickerson, William P. Lally, Jr.,
and Delmar I.
McCracken, have
joined the staff of Hamilton Man¬

Matthews

Reid

national product in

Edgar B.

127

likely

...

judging

of

ever,

that there will

and

nolia

Corporation,

for

expansion

and schools.

is

is

some

total

3 material role in Smiting reflected chiefly in
buildinS programs for roads the work week,

*

chance

good

res¬

Forms E. B. Arnett Co.

mont

4

further

a

year,

——
credit and

seem

.

large,

...

gas

There

increase

agement

of

thfshyeanhan

space.

—

next

but much of this demand

manu-

Oil

un¬

prices

themselves
are

Jules Backman

will

>

3,-

lounge

SEATTLE, Wash.
Arnett is engaging in

credit

,

financed

deve 1 opments
in 1956 will be

concerts,
class

the

natural

persons, facilities for playing
indoor sports plus other activities
as

leveling

Farm

.

six

Many

t

unions

over-all

a

consumer
—

demands

ments

than

wave

way!

of

500

such

.

.

industries

accom¬

approximately

in

•

facturing and
processing

approximately $1,500,000, includ¬
ing land, buildings, equipment
and

mortgage

to

cost

a

of

thencanacitv play

accordance
at

My

iriore temperate rate,

a

Both
—

•

experienced

A

.

ball

required

continue

though at

be

balanced

more

we

played extensively through¬
Spain
and
other
Spanish

The

the

.

.

der

of such GAW

to

capital

is

anything
since

of

.

diverse

.

continue

a

theoretically

.,

speaking countries.
with

projection

.

increase less rapidly in 1956. Cor-

current

Canada

conditions.

.

in

loans

the Canadian Outlook

The

,

.

REID

On

of

be relative

other

#

1956,
have

continuation

a

fringes.

_

see

will

we

products

12

cents

reversal of Federal
policy and a return to

a

level of prices.
As I

hour

be

the

we would

porate

permitted.
Jai

douot

}Y0Y

of

an

will

than

an

.'•••* exPect the rise in business

the year.

MR.

rather

change in the

movements.

wage rate and

George B. Roberts

_

In

quarter

borhood

-price

at

cents

cents

,

...

adjustments).

in

don't

structure"

of

the possibility of a reduced level
off.^ But with the momentum ticularly cony'1
business has acquired as it goes cerned with guaranteed employ- of activity in the automobile in¬
jnto the new year, it could be that ment and/or compensation plans
dustry, and the possibility of a
interest rates will 8Q higher bewill nevertheless seek
to
setback in housing,
There is
^ore they go lower(<
achieve in cash and fringes the

spending.
expect the second half

seasonal

the

"

hour, of which
in the neigh¬

business pattern is for

be

to differ fr'om the first half

1956

stadium

pari-mutuel

I

fact, I expect the last quarter of

fronton, designed for

of the game of

ting by

will

history—

consumer

not

(after

playing and public perform¬

ance

1956

our

records in gross national

new

tion, and

offering 1,250,000 shares of Puerto
Alai, Inc. to the public
a

in

year

product,
personal
income,
disposable income, industrial produc-

Rican Jai
at

I believe that

.

off

own

best

in

change in

a

.

easy-money

remains

war

Change

approximately
18

bave> a
Reserve

major nations of the Western

World

settlements

Z1
that
anyb°dy * *, ;

I

No

Unemployment

market

1956,

the

as

1956;

During the first part of the year
(1956), we may. anticipate labor
demands,
i.e., over-all package
demands, of 15 to 25 cents an
hour, with

the

slide

fast

area,

measure

have been

we

is

Early

(But) if busi¬
ness begins to

O. Glenn Saxon

customarily

today. What

Wage Settlements at 18 Cents in

rofpQ

Dr.

we

phenomenon

well be¬

are

As

inflation, there is little evidence
that
we
are
experiencing that

iVAli'

ad¬

in

open

.

being

expanding

this^ these shares

not concerned about infla¬

am

experiencing

by further ad¬

gold, even
the sterling

in

I

tion.

the

Reserve

vances

and

Convertibility
on

the

F.

of

Fed¬

ex¬

Jan. 9,

Stock

in

dollar

"cold"

Jai Alai

to

accompanied

DWIGHT D. EISENHOWER.
The White House,

F. H. Grerie Offers

further

a

vance

a

on

trade.

Inflation, But Scattered
Price Increases

inS and conveniences. In addition

a

expect

restraints

vided

1956.

continuation

a

would

factor necessary for

the Congress

swift

svet

symptoms, rising commodity
prices,
speculation
and
rising
prices in the stock market,

eral

change

No

tives. Public attention is likely to
drawn to all kinds of articles

po

.

MR. BACKMAN

concerns

be

discount rates,

pros¬

upon

for

on

stable,

a

bright future.

a

Again I urge
the

With such

peacetime

free

culture with

of

will speed

program

transition

perous

work

ridding ourselves

burdensome surpluses.
a

to

will

of manufactur-

boom

sub stantial

upon

possibilities

success

specializing in such
soft goods. Office equipment will
be sought by cost-conscious execu¬

ROBERTS

lessening of

en¬

success

program

degree

ing

United

the

occurred in 1929.

as

a

of something like
2%3% in gross income next
year.
*
Net income
may be down perhaps
by 5%.

hind the market.

d

been

from

a Re

There

...

goods

the

to

...

reduction

panicky

a

.

amusement

assure

Reserve

(will)

e x c e e

and

Loansrana°Resno11sive^Federa 1
Loans, and

of

exports

has

Should

prevent

spending on labordevices, precooked foods,

saving

.

further

circumstances,

any

war,

manufactured for comfortable liv-

the 1930's. Un¬

aided

.

a

Outlook

S.) exports in 1956
will increase only nominally (to)
$15.5 billion—about three times
the average for the 1920's and six

families.

acted,

of

Consumer

.

states.

$13 billion.

so

would indicate

ducers

Foreign

(U.

raising the income and ad¬
vancing the security of our farm

and

up

almost

short

rise in (Canadian) imports of pro-

General

The

Total

workable

a

to

under

Optimistic

further rise in our
exports to (the U. S.).
The
nature of the capital investment

SAXON

times

This program offers

pluses,

least,

MR.

sound and fair.

approach

long-term.
This method of
buying brings to stock prices an cotton and tobacco
that occurred
underlying
strength.
It
would in 1955.
These add

some

program

ex¬

than to deal in

us

pect

in dollar figures
somewhat
above
the
up,

present year.

basic

our

Our farm

panaceas.

pect better of

at

nostrums

no

the

condition such

the nine-

set forth in this
message, building on our present
program, meets the urgent needs
of our farmers today and does so

point

holding sound shares for

1956,
there

given
will

year,

present

be

some

further reduction in farm income.

Prices

are

expected

what lower. In

to

be

some-

addition, there

are

been

few

experiencing during the past
months.

The
will

efforts

be

made

the

very

the

dangers

inflation

that
to

narrow

of

undoubtedly

steer

path

us

contraction

probably

will

along

between

not

and
sue-

Volume 183

Number 5498

ceed

in

goal

of avoiding

either

The Commercial and Financial Chronicle

...

achieving the immediate
in

Schwabacher Admits

readjustment,

a

1956,

possibly,

or,

Our

Heller & Schurman

MR. GAINSBRUGII

SAN

FRANCISCO,

Schwabacher

Summary: The Biggest Year

New

For aggregate GNP, the Forum
anticipates a first-half total of
$400 billion-$405 billion. The con¬
is

sensus

for

further

a

mild

Co.,

York

100

San

of

o

By JOHN T. CHIPPENDALE, JR.

is not going to be any

the

Government
The

taken,

and

nearly

t
M.

R.

consen¬

is for vir-

u a

11 y

full

employment

Gainsbrugb

t h

r o

ughout

1 9 5 6.

«

T h

e

Forum

anticipates only about 2.5
^million unemployed in
the first
half, and perhaps a slightly lower
level of unemployment in the
second

On

half,

say 2.3 or 2.4

price

the

all

trends

in

million.

1956

.

commodity
wholesale
price index was indicated in the
be up 1.5 points. The
believes
the
consumer

Forum

price index will remain
virtually
where it is,

moving

only

half

a

course

of the year.

The year

yield

perhaps
during the
up

point

the

1956

whole will

a

highest

economic

ac¬

tivity, the largest national out¬
put, and the greatest volume of
industrial production
has ever known.

this

nation

However,

direction of
cant

Clarence

Stock

E.

Heller

Jacoo

G.'

Exchanges, have

and

the

of the signifi¬

many

sensitive

economic

in¬

dicators may be either neutral or
down toward the close of 1956.

Elements

of

strength

as

we

enter 1956 include: the hard

core

for

expansion namely the
up¬
surge in private investment- fur¬
ther accumulation of
the pressures of

inventories;

population,

sulting in

re¬

The

the
admission
of
Clarence
E.
Heller and Jacob Gould Schurman
as general
partners in the firm.

year-

firm in 1952 after

a

by

was

laid upon the fact

mid-1956

is maturing; that
it will be at least

two

years old and there are in¬
creasing signs of strain and stress;

and that the second

half will

re¬

quire close and careful watching.

members

of

the

New

York

and

Midwest Stock

Exchanges, on Jan.
19, will admit James W. Chandler
partnership

in

the

firm.

'Mr.

the Street
is

Francisco

Club.

of

ever,

will be

of

one

was

W.

Hellman,

founder of Farmers &

Stock

Exchange,

as

Executive Director of the foreign
department.
He
had for
many
been with Kuhn, Loeb &
Company, mostly as Manager of
the foreign department. Mr. Meyer

years

had

his

where

banking training abroad

for

several

associated

with

Company

in

he

years

Gordon

makes

Co.

1938.

He

was

Phi

a

1951,

coming

American

Trust

graduate

tant with
funds
now

Beta

from

If

of

the

He served

California
as

a

The

Bar.

Van

He is

area.

Horn

third

was

Jacob

'Gould

and

tions with

and

London

daughter.

termed

money

and

associated

with

its Savoy Plaza Hotel
York

City.

Benjamin

&

the

in the firm's main

be located at the

rugged

as

there

has

very

been

or

and

still

being

dominated

they

are

Another

are

becoming

liquid

sizable

Treasury

correction

of

a

seeking

Government

obligations.

in

Stillman, senior part¬
Stillman, Maynard & Co.,

New York Citv, passed
away Jan.
6 at the age of 72.

policy.)

to

still

are

in mind.

It

business




North

Main

Street

office at

under

management of A. M. Seaber.

from-

the

offices

4532

at

North Tenth Street.

nonetheless,

seems as

maturity group

are

L. N. Rosenbaum

though
getting

Lewis

of those obliga¬

expense

Opens

PHILADELPHIA, Pa. — Jacob
Rosen is conducting a securities

away

time

some

long-term

same

in

the

investment

course

it has

as

With

the

Central

poses

Rosenbaum

N.

passed

Jan. 9 at the age of 75. Mr.
was

very

active

in

real estate operations.

It

is the public

in

past.

The

Treasury
of it

supply of

bonds

now

U. S. TREASURY
.

does

seems

STATE, MUNICIPAL

to

a

and

Possibility

of business.

With the

PUBLIC REVENUE

eco¬

been, there is not expected to be

.

•

SECURITIES

(Any deterioration

make the business

be

on

too

this

early

loaning rate.

Banks

the question

the prime bank rate.

ment

Savoy Plaza of¬

Co. has opened a branch

lim¬

Catherwood,

ited partners.

Jacob Rosen

obligations

in the major monetary pattern.

There

to

predict

At the

same

the

expected
as

picture

so

strong

to

keep

the

money

to what is going to happen

seems

subject at this time,

to be not too much agree¬

even

future

though it still

course

of

this

seems

to

important

time, it is indicated that quite

market specialists would

discount rate

205

Cummins

and

in

taking into consideration

are

purpose

with the future

up

markets tight,

office, will also

&

Clinton

are

Jr., and Raymond E. Hartz, gen¬
eral
partners,
and
Charles S.
Dewey, Jr., Kenneth L. Allen,
Donald F. Hyde, Allen B. Grady

are

were

hiked

not

be

greatly surprised

a

few

another one-quarter

if the

of 1%.

Aubrey G. Lanston
& Co.

Gocdbcdy Opens Branch

ner

Sr., Clinton Davidson,

would most likely bring about an immediate change in monetary

formerly

Fla.—Goodbody

ownership*

Partners

the principal buyers of these obligations

are

in certain of the forces that

money

ORLANDO,

of share

rewards

Davidson,

the

stocks

some

Mr. Scott's Committee

business.

pen¬

impor¬

It may be somewhat early to be looking at

firms.

Walter N.

a

Oil & Gas Co. Opens

significant

common

issue in this sector of the market.

any change

at

Orlando, Fla.

as

MADISON, N. J.—The Oil and
Gas Company has been formed
with offices at 55 Green Village
Road to engage in a securities

not going

more

It is indicated that

short,

be

by

It is indi¬

'

Office in

served

expanded work of
Exchange in the public rela*
tions field today—activities aimed
at
increasing public confidence
in the integrity of the Exchange
and public awareness of the risks

1956, unless there should be

Rise in Discount Rate

is

other

During

satisfactory showing, with the 3s of 1995 still the

a

nomic trend the

firm

/

Scott

the

as

The future trend of the money market is beyond any ques¬

Szyk

1929.

Mr.

the

a

fice.

Walter Stillman

II

&

member of the

stocks.

family

office, New

Landeck,

since

be finding its way into the 2 V2% bonds.

Martin L. Gillman and
K.

not

not appear to be diminished at all and some

With L. F. Rothschild

now

in

work

they have been for

as

L. F. Rothschild & Co., members
of the New York Stock Exchange,

George

to

pension funds that

tion tied

announcedi that

a

Captain and then
Colonel in the Air Corps.

initiated

optional call dates.

best acting

gen¬

under
Hoover.

The

and

The most distant Government bonds continue to make what

American

and

partner in the
investment

a

a

Rosenbaum

Germany

Coolidge

is

War

as

President.

Up

Continued Demand for Long Bonds

Schurman,

was

to

monetary

being watched

are

or

increasing amount of attention at the

an

formerly President of Cornell

University

in

the strong side.

program.

the set maturity issues in the middle

a

Butane

eration San Franciscan. His grand¬

father,

put

being made with this

swops

is
a

changes

was on

what will happen in the coming year but there
are,

the Blind.

is

already ended.

It has been evident

ordinarily be going into

the 1956 tax picture.

the the San Francisco Center for

Schurman

passing of time.

would

intermediate-term

Club, Bond Club and Se¬
curity Analysts. He is Treasurer

Mr.

Exchange
first

of1 surplus funds

amounts

is

being switched by institutions that

the U. S. Navy during World War
1941 to Janu¬
ary, 1946. Most of his service was

in the Scuth Pacific

not

buyers of Treasury bills, mainly,

should, however,

common

mem¬

State

Scott

He has been

Intermediate Maturities in Demand

II from December,

of

being

there

in

Lt-Commander in

a

the

which

University of

California law school and
ber

and a Chairman, to
by the membership
election May 14, i

on

Exchange

World

the equity
market, it is evident that this money would again be invested

the

Company where

the

of

Co.

being made by corporations.

are

sion fund, and it is reported that

He joined Schwabacher &

in

voted

Mr.

into

buyer of short-term Government securities is the private

Schurman, Manager of
&
Co.'s Analytical
Department, graduated from Stan¬
in

these

market

money

changes in the over-all monetary

Schwabacher

ford

let¬

a

the annual

at

centers, according to

important

any

to alter their policies very much in

Mr.

Kappa.

be

Shortage of Short-Term Money

short-term

cated that

National Bank of Los Angeles and
a
former President of the Wells

was

Leith

of the Board

change in this ti'hnd.

the purchases which

Merchants

Fargo Bank.
Mr. Heller
his home in Atherton.

be

has

investments.

or

effort to detect whether

an

a

The

His

grandfather,

May 21,

banking firm of Dean Witter

moving back

time, the economic picture is still

No

Lome is in San Francisco.

City, members of the

.liquid

investment, chan¬
in Treasury bills.

San

California's pioneer families.

I.

it

important

any

not

if

though certain segments of it

even

closely in

He

the

member of

a

short-lived

the business pattern

as

present

Symphony Foundation.

Mr. Heller is

ends

Nominating Committee.
This Committee is charged with
the
responsibility of naming 10
nominees for incoming members

has been in evidence

ease

Mr.

successive

ter to the

However, it seems to be
few money market specialists that the
period

have

would

long

as

the

to

Club, California Tennis

Vice-President

a

Burnham & Company
York

a

rather

not

there

policy

Security Analysts,
Sierra Club, Commonwealth
Club,

son

York

be

member of the

He is married and the father of

New

will

ease

that

He is a director of
Pacific Coast Aggregates and Van
Horn Butane Service and is a

Presidents

New

be

available

second

Chairman

as

be

Chairman.

Beyond his Chairmanship of the
Exchange, Mr. Scott's most dis*tinguished service to the commu¬
nity was as Chairman of the
Advisory Committee on Public
Relations, during the year pre*
ceding the appointment in Sep*
tember, 1951, of Keith Funston as

advices, do

uated in 1950.

Municipal Department.

John E. Meyer has joined Burnham and Company, 15 Broad St.,

sure, a limited amount of

which could be used for loans

University of California and grad¬

Ambassador

Meyer Joins

to

The commercial banks in the
large money

Chandler is Manager of the firm's

J. E,

term

in during the greater part of last

was

whose

Stock

appears

not
as

made his decision known in

well

might

of

Army service in the
Pacific Theater during World War
II, Mr. Heller returned to the

.

to

most

would

Lt.

f lingame

Admit J, W. Chandler

market

channels it

same

t9 be

the opinion of not

Service and holds memberships in
the
Pacific
Union
Club,
Bur-

LOUISVILLE, Ky.—W. L. Lyons
& Co., 235 .South Fifth Street,

the

be

marked effect upon mone¬

a

Following

director

W. L. Lyons Co. to

to

also indications that

are

York with Dominick & Dominick.

a

boom

There

in

of

since the year-end because of the return
flow of currency from

in New

year

possibility of tax relief.
Emphasis

continue

investment

Chairman

circulation and the repayment of loans.

Heller, the firm's syndicate
manager and analyst, joined the

he had served for five years in an
official capacity. Mr. Schurman is

that this

seeking

Government

much the

Mr.

increase in state and
local spending of $400 million or
$500 million per quarter; and the
an

funds

obligations

Money Stringency to Continue

Schurman

announced

Club and Menlo Circus

as

because

Treasury

develop in the economy would have
tary policy.

-

consensus to

issues

short-term

he

re-election

Scott,

The business pattern is
being watched very closely by most
money market specialists, because any soft
spots which

half

$410 billion in

sus

have the usual first-of-the-year
This has tended to make the most distant
more active and buoyant at times.

money which would generally be used in other
nels is being put to work, for the time
being,

the latter half.
Our

that
for

those that

issues still appear to be available.

would-

first

issues from

money to put to work.

yield about
$405 billion in
the

change in monetary policy, the market for

Treasury obligations is not dissimilar to what it has been in the
There has been, however, a fair amount of demand for

selected

Scott,

Exchange since May, 1954, and a
Governor of the Exchange for the
past seven years, has announced

based upori the belief that there

are

W.

the Board of the New York Stock

past.

sector-account
totals

Because of opinions that

v

Francisco

Our

n.

Seek Re-election

the

second half, to
$405-$408 bil1 i

Governments

on

Harold

Mont¬

members

and

Reporter

Calif.—

in¬

in

crease

&

Street,

gomery

Yet

27

Scott Will Not

in

1957.

In

(183)

incorporated

Omer M. Fulton Opens
PHILADELPHIA, Pa.

Omer
offices in

Goodbody Branch

>

.

ROYAL

15 BROAD

ST., NEW YORK 5

WHitehall 3-1200
231 So. La Salle Sl

the Western Savings Fund Build-

OAK, Mich. — Goodbody & Co. has opened a branch
office at 3101 North Woodward

CHICAGO 4

BOSTON 9

ing to

Avenue under the management of

ST 2-9400

HA 6-646S

M.

Fulton

ness.

has

opened

—

engage in a securities busi.-

Raymond J. Laude.

45 Milk

St.

23

The Commercial and Financial Chronicle...
Thursday, January

(184)

Continued

the

from first

page

Editor
Guide"

required

than

merely

main

sectors.

Included

in

the

of

number

(Act

there

was

fundamental

a

change.

the

In

spring of 1954 that State
county wide branch
banking (Ch. 182).3 Consequently

banking units in the Comptroller's
analysis are the mutual savings

authorized

banks and their branches, and the
population figures used are those

the

of

the

the

decennial

dates

in

highly

prior to

census

covered

study,
namely June 30, 1924, and Dec. 31,
1934, 1944, and 1954. In comment¬
ing on the analysis we propose to
exclude the mutual savings banks,
to

selected

for study, namely
Dec.
31, 1946 and Dec. 31, 1954, and to
indulge in a little more detailed

analysis than that
the Comptroller.

furnished

i

both

New

relative

branch

find

on

the

six

a

and

basis.

state¬

limited

area

(including
Columbia) which

of

permit

form of

some

they

that

attained

nave

ginia.

For

The data for
are

taken

States

those

estimates

the

of

in

350

branch

banks and
the

from

7

Conference

1948,

manac,

p.

9 New

York

strength,

served

suspect, and the remainder had
by statutes expressly forbidden it.

confirmed

by

were

accommo¬

local

community

of

facilities

the

commercial

bank.4

of

a

is

It

never

tuals, important though they
are

the policy

are,

wholly supplementary in this

State.

and

erate.

matter, and Texas

mined

the

tional

liod

other

did have any legislation

never

the

deter¬

Number

of

of

Banking

Banks

there

States

in

true

which

of

the

they

op¬

units in

relation

some

to

States

Branches

Oregon

States where the number of mu¬
tual savings banks and branches

193); in
Jersey (Chs. 179, 220)
Virginia (Ch. 75); in 1953 in

Alabama

(Acts

their

exclusion

preciable

16,

387, 485, 606,
617), Delaware (Ch. 127), New
Jersey (Ch. 17), North Carolina

leads

to

are

modification

ap¬

of

the

follows

as

of Dec.

as

31, 1946

and 1954:5

Commercial

Banking
Units

207

135

284

193

166

132

184

Maryland

287

264

339

308

560

336

660

410

109

66

113

78

Massachusetts

___

Rhode

•;#

151

#

In

1,511

67

96

73

98

81

94

78

comparing New York City
Chicago,
the Comptroller,
msn

the

using

showed

that

to

each

serve

census

whereas

figures,
31,
1954,
banking office

Dec.

on

New York had
lation

.c;

1950

one

10,825 of its popu¬
Chicago had only

for each 48.931

one

of its populaIncluded in the 729
banking

Hon.

units in New York
tual

offices.

142

were

Although

mu-

the

ex-

elusion of those offices would not

to

appear

affect

conclusion

that

"more

services

of

.of

seriously the
Comptroller
banking

available to residents

are

New

the

convenient

York

because

of

the

larger number of banking offices
available
by
branches,"9

made

there

are,

factors
are

to

concerned

now

parisons

we

be

dicate : that

State

with is to in¬

by

State

com¬

be seriously affected
by the exclusion of mutual instican

3 Annual

Repcrls

posit Insurance
for
in

the

193i*

ber

see

Federal
and
p.

4 Rand

1955.

Corporation

Federal
' Part

in question. For
banking powers from

1939

Banking,

the

of

years

branch

Reserve

J.

S.

De¬

Pour )

changes
)»<u

iO

Bulletin, Octo¬

Chapman,

Branch

129.

McNally,

Final

Banking

Insurance
pp.

of

the

Federal

Corporation,

100-107;

1954,

Op. cit.,

1947.

Table

110-117.
6

one

4,900

in

on,

1954.

Excluding the

105

88

39

14

53

5,390

34

33

___

De¬

7'able

102,

12-13.




67

42

89

5,590

4,500

5,280

38

65

103

68

5,820

132

61

90

151

170

94

264

6,620
7,990

Maryland*

156

308

5,930
8,620

5,800
5,000

152

Nevada

8

Carolina

f

26

5,150

8

24

32

161

^

9,210

224

304

528

mutual

70

76

146

47

138

185

44

8,210
9,320

7,700

9,240

23

67

10

63

73

149

30

11,770

179

10,970
10,520

151

78

229

9,820

8,300
9,500

Oregon*
Rhode

Island*-

South

Carolina

1

Vermont"'

72

9

81

4,360

65

13

78

118

4,810

4,000

240

9,030

107

186

293

9,040

8,100

1,607

2,926

8,870

1,186

2.443

3,629

9,010

1,319

States

Permitting Limited Area Branch

December

Number

Number

of

Branches

1954

Banking

„

Lniis

Number

Total

per

of

of

Banking

Banking

Banks

Branches

Units

Banking
f.Inu

Georgia

_

__

37

271

11,440

249

7,540

231

23

254

7,200

7,500

31

406

59

460

572

7,600
6,550

401

83

474

153

627

659

161

820

665

162

827

3,140

Kentucky

390

35

425

3,100
6,350

7,900
6,300
3,200

371

66

437

Louisiana

6,810

6,800

155

62

217

11,380

172

102

274

191

145

336

13,500 />•

177

233

410

10,350
12,130

7,100

448

198

429

337

766

9,400

8,300

86

283

7,510

7,800

110

5,690

5,400

538

1-

Iowa

€

Mississippi

203

346

v

646

110

Jersey*

New Mexico
New York*

52

255

134

8,160

197

4,340

110

480

,

8,790

307

44

Dakota

6

50

671

___

693

151

25

-h:

850

■

231

52

26

78

560

10,380
10,040
3,050
8,820

176

176

,

951

1,511

3,600

154

23

177

634

333

967

1,141

8,770

859

396

1,255

169

44

213

170

52

220

2,810

298

68

366

2,570
8,160

297

128

425

7,820

8,780
7,200

54

38

92

316

157

473

8,420
7,530

59

12

71

315

—

86

401

7,210

2,180

8,080

9,390

December 31

for

8,370' in

Pennsylvania where the mutuals
only 36 of

6,864

3,593

,1946

10,457

a

!leccmber 31L,

Number

Total

of

of

Banking

8,260

1954

Branches

Units

Unit

;

1954

Population

Banking

Banks

Colorado

Number

per

Number

Total

of

Banking

Banking

of

Banks

Branches

per

Unit

5

166

9,040

226

12

238

910

3

913

14,920
10,190

2,980

602

3

605

3,330

4,110

679

6

685

4,530

6,320

600

1

601

6,820

419

3,030

419

1

420

3,210

3,200

66

76

2

78

4,700

384
925

6,690
5,670
9,000

11,000

704

10,230
5,180

54

5,520

5,500

5,975

7,020

1

Florida

182

3

185

Illinois

876

3

879

7,260
12,160
9,040

1

615

6

683
596

152

'
\
v

New Hampshire*

Oklahoma

385

1

386

7,770
5,730

Texas

873

4

877

7,760

180

10,030

West

180

Virginia-

Wisconsin*

seems

554

2

j (J

388

17

i.U
—

£42

;

183

''

«-w

i

700

4,520

150

56

4,640

1

5,794

6.170

146

56

Wyoming

—

169

5,625

real

3,200
4,300

<
,

•

6,600

5,800
8.400

4,900

203

5,772

District Wide Branch Banking

com¬

in comparing pop¬
banking unit under

no

8,200
12,200
9,600

total

mercial banks

there

Figures

'

Furthermore^, if mutual savings
included with the

Comptroller's

Units

161

151

1,291 offices.

of

7,200

1

Population
Number

2

conditions

3,000
7,900
7,900

States Prohibiting Branch Banking

~~2

various

8,100
8,200

8,530

64

figures

for

per

8,500
9,200
8,400
3,500.

9,050

;

126

_

Virginia

9,900

10,130
10,260
10,260

1,015

_

-December

31, 1946-

-Decembcr

r

branching

Number

Total

Population
Number

of

of

Banking

Banking

Branches

Units

Unit

Banks

55

14,810

Total

of

Number

per

Banks

justification

1954

31, 1954-

Population
Number

excluding the rapidly grow¬
ing savings and loan institutions,

Banking

Banking

Units

Unit

71

12,250

20,132

8,040

17

of

Branches

per

Comptroller's

Figures

District of

Continental

perhaps

sistency,

it

credit

is

unions.

urged,

will

pp.

The

\

'

1,364

674

_

9,440

110

417

ulation

11,500

7,930
6,860

Indiana*

Nebraska

are

Figures

234

20

375

_

11,460

229

489

Arkansas

242

31,

and
Pennsylvania
7,100 and one for
8,200 population
respectively, but
excluding the mutuals we get one
for 11,440 population i in Massa¬

banks

Comptroller's

Unit

23

sav¬

Massachusetts

of

31, 1954——
Population

Number

per

219

--

596

for

December

Total

of

Banks

_

Missouri

accounted

Banking

31, I94G—«—
Population

Alabama

8,200

122

the

for

7,100
5,300

7,030

388

677

one

,

18

227

614

and

8,400
7,100

64

__

Minnesota*

one

Comptroller's

47

Maine*

Kansas

were

193

1,292

14,440

Branches

for each

Dec.

population

Comptroller's

8,100

1,121

135

find that, on the

we

the

Figures

10,050
9,680
11,920

20

figures
used by the Comptroller, the
fig¬
ures are one for
6,820 population
in New
Hampshire and one for
4,880 in Wisconsin.
And
again,

more
pp.

Wisconsin

of

Unit

115

ings banks (important in New
Hampshire and almost negligible
basis

Banking

Units

Connecticut*

4j00 population jn

New Hampshire and

in Wisconsin)

Banking

97

or

Directory,

edition.

Reports

1C2,

each

of

of

84

Tennessee

for

5 Annual

posit

unit for

per

171

South Dakota

tutions. For example, the Comptroller's figures show one banking

shall see, other
considered.
All we chusetts

as

Banking

Total

8,660

Utah
and

1954

Population
Number

1,079

Pennsylvania*

1,766

—.X

-December 31, 1954Number

per

'

78

Vermont

Total

878

Ohio*

1,364

population

Banking

201

North

1,567

Island

Branch

California

Montana

Banking
Units Only

?

Maine

New Hampshire
New York

Statewide

13

New

All

Banking Units

Only

figure for Ala¬

11,400

VARIOUS CONDITIONS

Banks

Michigan

-December 31, 1954

Commercial
All

year.

Unit

Massachusetts*

Banking Units

Connecticut

an

Comptroller's figures. Those states

December 31, 1946

States

per¬

centage of all banking units that

1952 in New

and

fairly important

a

Our
for

which is practically identical with
that of the Comptroller. In States

12.980

consider commercial banks

constitute

1

47

only.
However,
it
snould
be
pointed out that it is only in those

(Ch. 38) and Pennsyl¬
(Act 376); in 1951 in Penn¬
sylvania
(Act
163),
Tennessee
(Ch. 97), and Utah (H. B.

is

Units

__

valid

more

if

vania

bama

population in

are

changes in branch banking
legislation in 1947 in Delaware
(Ch.
251),
Indiana
(Ch.
276),

we

important).

1

35

_

Washington*

different

were

kota, where the Market Guide
a slight decline in
population since 1950, to 1 for 12,130 population
in Massachusetts
(where mutual savings banks are

12

Arizona

therefore, that com¬
parisons of the number of banking

by constitu¬
During the pe-

select

we

is

same

each

from

area

estimate shows

Vermont

31, 1940

It appears,

question

provision.

which

The

in

in

limited

for 11,500 in Alabama. Our range
is from 1 to 2,810 in South Da¬

PER COMMERCIAL BANKING UNIT
UNDER

Number

North

branching, nine have

1954

Population

we

mutual savings bank

a

devoid

by prohibi¬
tive statutes, three have not now
on

102

States Permitting

was

which

10 Table

1955.

in

population

the

banking States, the Comp¬
troller's range was from 1 to 3,000
population in South Dakota to 1

for the selected years in the
where
statewide
branch

4,810

to

Decembeir

branch banking was on the whole

States

&

In

branch

banking

OF BRANCHING

June

Derry, 30

Carolina.

data

our

per

TABLE I
POPULATION

Idaho

13

24,

Massachu¬

present

we

units ranged

mg

October

branches of

in

In States permitting statewide
branching, the number of bank-

8.

Times,

bank

ulea

Re¬

9 Market Guide, 1955 (The Editor
Co., Inc., New York).

13

City

banking is allowed, in the limited
branch banking States, and
in
the States prohibiting branch
banking. In addition, we give the
Comptroller's figures for 1954.

branches

Annual

York

States

Publisher

ties only, and but one

the

unit

use

by the National Indus¬
Board,
Economic
Al¬

reported

as

trial

Delaware*

permit

In Table I

ports of the Federal Deposit In¬
surance Corporation for 1947 and

through statutes
passed
sporadically from 1908 to 1954, 25
previously had no legislation, but

offices

Of

we

two

and

York

showing population

Bureau.9

the

New

setts and Pennsylvania.

discrepancies
appear
California, Texas and Vir¬

are

eliminate

two

Rico

New

a

noticeable

dated with both types of banking,
20 had commercial banking facili¬

did

those

their

30, 19o5, of 51
communities ranging in popula¬
tion from 83,000 in Manchester to

Of the 36 States

District

now

on

of

Hampshire, for example,

greatest

wide

Puerto

ac¬

of
Bureau for July
1,
only States in which
light

to

of

1

The

banks in Panama Canal Zone and

The

very

appear

for 11,770 in Rhode Island.
Comptroller's range was from
1 to 4,000 in Vermont to 1 for 9,o00 population in South Carolina.
For Rhode Island (with 23 mu¬
tual savings banks and branches)
his figure was 1 for 8,300 and our
figure is 1 for 9,820 in South
to

York State for 1954

adjusted

branches

fields, the mutual banks can never
replace
the
commercial
banks,

by

In

a

the

The

banks, and though
competitive
in
some

are

where

on

institu-

c

*

It avails little to go back to 1924
when
only 18 States permitted

12

in

1955.8

1,

is

"Market

the commercial

I

banking,

mutual

be questioned.

specialized

are

>u"a

the

of

may

banking functions. They supplement (in some instances) the basic
type of banking represented by

consistent with the dates

more

they

,.

are

tions that do not perform general

population estimates which

use

are

exclusion

savings banks
Rut

selected

have

Jan.

1954,19 but the number of facili¬
ties for New

comparable.

The

the

I

dates

Publisher's

for

the

of

for

July
estimates of

the

and

Census

1955.

371), Utah (Cn. 8) and Wisconsin
(Ch. 128). But only in Kentucky

three

the

South Carolina

(Ch.. 1209),

furnished

that

comparing

Census

estimates

curate

the

those

are

the

and

latter

Banking Facilities
by

of

1946?

1,

Branch Banking and
is

calculations

Bureau

12, 1956

Con¬

give

Columbia

♦Denotes

comparable results.
200

population figures used

in

20

United States"

in

were

the

in

14,174

States

with

statewide

limited

35

area

3,991
mutual

branch

States,

banking

250

were

7,620

18,165

savings

banks.

States,
in

589

Of
in

total

a

the

Massachusetts

of

6,293

13,839
835

limited

and

54

mutual

area
m

savings

States

iNew

and

York.

banks

40

in

and

the
-

branches

remaining

on

12,200

Dec.

States.

31,

Of

1954,

the

589

Volume 183

Number 5498

...

The Commercial and Financial Chronicle

(185)

factors

prohibiting

branch banking, the
Comptroller's figures ranged from
one

banking office for 3,200

ulation

in

braska
in

both

to

in

and

Kansas

12,200 population
Our figures are 1 for

Kansas,

for

1

in

tion

Florida.

the

the

fact

ure

used

The

of

case

that

is

is

use

responds

3,650,000, which
closely with

Census Bureau estimate of

the

the

of

to this when

we

shall

complete

improvement
in

the

for July 1, 1954.
At the risk of what might ap¬
pear to be needless repetition, but

the greatest discrepancies appear
at the end of 1954.

to

in

sector

the

ag¬

increase

the

lation

estimates

which

Connecticut, Ma i n e} Rhode
Island, Vermont and New Hamp¬
the

it

due

is

predominantly

exclusion of the mutual

ings

banks.

States

in

In

the

T

the

Maryland, Washington, Massachu¬
setts, New Jersey and New York,
both factors

influential

were

(but
with varying degrees of
force) in
causing the differences.
The
Comptroller's conclusion,
based

tors,

approve

new

a

than

can

serve

We

find

branch

that

in

banking

facilities

the

to

appear

be

badly
too

are

apt to be misleading, we need to
be more specific and to consider

or

at

in

terms

the

of

lina.

the

But

of

causes

varied.

In

the

have

treme

of

population

:

II

will

8,400
7,100

9,680

.

_

-

_

.

Nevada

Oregon
Rhode

Island

_

___

5,930

7,030

8,300

.

4,000

4,810

8,100

9,040

Limited

Branch

Area

State

Restatement

7,100

Michigan
New

Banking

Comptroller

12,130

Massachusetts
_

_

8,300
8,500

.

Jersey

In

statewide

New York

Ohio

„

_

banking

a

density

square

of

8.6

per

population
mile

8,400

.

.

and

of

Rhode

Connecticut

density
Island

of

with

lation density of 28.8 had a popu¬
lation per banking unit not much

population

and

the

.:

and

State

ments?

New

12,200
4,700

Hampshire

Texas

TABLE

14,920
6,690

8,400

—

The

and

no,

the

defies

grounds

on

of

is

answer

abundant

*wo

Per square mile, had one
banking office serving 4,105 population.
Was Hamilton County
better
provided
with
banking
facilities? The fact is that in New-

definitely

evidence

in

support of the answer can
be
found in memoranda submitted to
the

Subcommittee
on
General
Credit Control and Debt
Management of the Joint Committee on

Yprk County the

memo-

banking office was 0.07 and in
Hamilton County it was 1,747.13
Population per banking unit may

reply to the quesplease submit a

be no indication whatever of adeQuacy of banking facilities.

Report in 1952 by
representatives of the 12 Federal
randa

districts, n
in

were

"Will

The

you

memorandum
quacy

discussing the adebanking facilities
in

of
district.

as

the

ideal

your

For

this

In Table IV

all

bringing

banking

having

persons

them." 12
firmed

All

the

the

definite

but

our

relevant

of

same

served by each office.

the

ties

with

nature

of

the

economic

in the counties

is

also

III

cursory examination of the
Table indicates the striking simi-

New

or

branch

noticed

paired

States, degree of economic
development, income and its distribution, would it be possible to

present

conclusive

a

answer

(be

of banking

facilities,

or

same

T

,,

.

,

,

to

vice

,

pointed conclusively to the fact that regardless of the

economic characteristcs.
v.

union City

population densities of 6,900
system of banking that. and
3^00 per square mile respec-

prevails, the physical

accessibility!^ve]y jiad one
banking facilities is predomi- jw0 and three
nantly a matter of population
spectiVely 14
density in areas or localities and!
This

0ffice

of

?

kjcak^ies wjithin

o?rfas un

the States show very marked de-

Committee

11 Joint

from

difference

of

the

on

Economic

82nd Congress, 2nd Session,
737-787

'replies

also

See

tendents,

ibid.,

pp.

of

in

Committee

13 Joint

the

Part

serve

for

Sproul

district,

density
offices

based
as

the

Federal

744-745.

pp.

on

Second

1950

of October

clearly

that State figures
population per bankare merely a statistical
convenience and that inferences
based On these figures concerning
degree
0f
superiority
of
very

indicating

,

,

treated with considerable caution.
Economic

Report, ibid., memorandum submitted
Allan

mile*

by
Re-

Population

census/Banking

1951.

One
home

further
.

Caution
tion

of

facilities

illustration

clearly

very

..

Rept/toi%idCopm745ee °n the Econom,c
TABLE

*

diSCUSSing

ill

availability
under

any

per

per

banking unit

square mile*

Colorado
Florida
Illinois

80.0

9,680

Connecticut

469.5

11,920

Delaware——

189.6

5,590

7.3

5,820

28.8

2.0

5,930
8,620
7,030

14.4
66.2
166.3
Kansas
24.5
Minnesota
38.7
Missouri
59.2
Nebraska
17.6
New Hampshire
57.9

88.3

8,210

Oklahoma

Maine

268.7

Maryland—
Nevada
North Carolina

—

——

_

31.9

per

banking unit

Banking

14,920
10,190

Continued

Mixed

Albany:
Erie

(including Buffalo):

Resort

♦Based

on

451

8,647

853

10

5.848

19

304

3,217

17

185

2

1,747

6,820

Monroe

Industrial

40

3,210

Onondaga (incl. Syracuse):

Industrial

33

10,335

agricultural—

Locomotive and electrical

Schenectady:

725

4,810

Wyoming

3.0

5,520

39.7

9,040

"Market Guide" estimates for population and Bureau of Census for

17

24

'u

11

12.991

684

19

and

8
8

4,901
5,893

44

110

Washington:,

agricultural—
Resort and agricultural—

56

105

Westchester:

Residential

65

9,628

Bronx:

Residential and industrial

66

21,989

1,439
35,397

0.62

industries-—-

5,670

5,190

24.

431
•

66.8




10,881

4,105
12,191

6,690

Miles

Served by
Each Office

22

Mining
Forestry.

40.4

Washington—_

on page

-104

Hamilton:

(incl. Rochester):

Square
Mile

Lewis:

Wisconsin.——

Vermont

Per

3,330

9,820

74.2

banking
of

system

gov¬

—

and

Per Office

4,530

9,000

u

Industrial

Essex:

—

industrial

&

Population

Offices

County

industries

ernmental

Population

6
7
1

10,230

—

Nature of

County

9,040

32.2

South Carolina

Texas
West

Of

IV

Number of

Population

77.8

9,320
11,770

*

for

QUeS-

Average

Virginia—

17.9

Rhode Island— 812.9

the

Counties, Banking Offices in Relation to Nature of
Economic Activity, Population and Area

Warren:

Oregon

drives

need
,,

Square

Population

10,050

Idaho

the
.

..

New York State, Selected

Branch Banking Prohibited

8.6

California

re-

indicate

should

branch over unit banking in providing banking services should be

Superin-

State
984-989.

each

this jng 0ffice

°Co/lj p"blic Debt• J,oi"t Committee

pp

for

miles

square

summary

grees

j

mile,
and
that
Essex
(including Newark) and
(including Elizabeth),

County

,

memoranda

the

precisely

—

square

'
The
_.

that

have

?n.
Hey Jersey counties ad+Pir?in|l Hew York City, we find
that Hadfn County (including
3crsey City), with a population
of *0,800 per square mile,
ad one banking unit fox each

question of the degree of
superiority of branching systems
over
unit banking in the provision

counties

.

the

'12

considerably in
density pei; square

-:;f

Population

per

activity

given,

9,000

Statewide Branch Banking States

square

coun-

>,:;A

Branch Banking, December 31, 1954

_
——_

The

comprising New York Citypresented separately and the

are

distrijbtuion of population within
the

Print,

differed

but

Population Density and Population Per Banking Unit.

Arizona

of

]ar,ty between population per ofJersey, dim- fice population
per square mile,
banking States, and
average square miles served
or
with Illinois which prohibits
by each office in the foliowing
branch .banking, Only under the
palrs 0f counties: (a) -Albany and
unfounded
assumption that
all
Onondaga, (b) Monroe and Schethree sectors were highly comnectady) fc) Warren and Washparable from the standpoint
of ington, and (d) Bronx and Kings,
topography,
population density, lt wiu also be

2

almost

Statewide Branch Banking States arid States Prohibiting.

Population

number

was

af-

purpose

comparable

the

on

im-

the

conclusion from

is

data

banking offices, population per
office,
population
per
square
mile, and average square miles

answers

adequacy,

portant fact for

need

sev-

New

York State,
including those with large metropolitan centers and those in which
population density is very low,

purpose,

standard of adequacy

of

set out for

we

eral counties in

facilities within convenient reach
of

average number
served by each

miles

square

Economic

Oregon with a statewide branch
banking system, and Colorado, a
non-branch
banking- jState, had
almost the same population per

Restatement

Comptroller

Florida

in

national

a

which

geography, density of population
or
regional
banking
require-

mile.
States Prohibiting Banking

that

have

structure

reconciliation

any

ent

Colorado
exactly
population per banking
had

population

9,050

then
we

bility of banking facilities. Taking extreme cases in New York,
we Hpd that New York County
had a population density of 89,098
Per square mile in 1950, 288 bankin§ offices, and a population of
6>806 Per office, whereas Hamilt°n County, with a population of

was

Report, Monetary Policy and the Manage-

same popu¬

banking unit.

Texas

unit

10,260

8,100

,

.

of

population density of 812.9 per
mile. Maine, with a popu¬

10,260

-

that

population

lation per

9,400

State

^

than

a

square

10,130

>

9,200

________

_

branch

77.8, but both had the

v

New Mexico

banking

ited-area

however,
was
population
per
banking unit as low as in Kansas
and
Nebraska,
non - branching
banking States.
In the States prohibiting branch
banking, Illinois had a population
density of 166.3 per square mile,
while that of West Virginia was

9,320
11,770

Washington
with

ex¬

density of
189.6.
Washington with
approximately the same popula¬
tion density deviated very con¬
siderably in population per bank¬
ing unit, 4,810 and 9,040 respec¬
tively. In none of those States,

8.620

Vermont

States

for

Vermont

5,590

5,000

7,100
5,300
8,200

Maryland

_

true

clearly the ne¬ lng States,
carrying the analysis •New York

States, Arizona with

a

11,920

4,500
_

the

higher than that of Delaware with

10,050

_

_

for

York

consistent with relative inaccessi-

square

Texas

States

further.

even

,

—

indicate very

cessity

a

.

Restatement

Delaware
Maine

III

per

of

permitting details submitted that State by
statewide and States prohibiting State comparisons
relating bankbranch banking—the relationship ing unit to population are invalid
of population
density to popula¬ for any practical purpose. Neither
tion per banking unit. The Table Maine nor
Vermont, branch hank-

with

8,100

-

Table

smaller

rate

growth.

Comptroller

_

in

cases

with

_

Connecticut

to

had one banking unit per 10,050
population. This was only slightly

State

_

referred

to a slight degree in Rhode
Island, but they did not keep pace

and

the

it

take

already

for

need

indicate

im¬

Arizona,

Permitting Statewide Branch Banking

California

facilities

examining the in¬
banking office im-i fluence of population density in
proved considerably in Arizona, relating the number of banking
Connecticut, Maryland, Nevada, units to population. In attempt¬
Nortii Carolina, and South Caro¬ ing to explore the problem we

TABLE

__

of

Ill

We

banking

Banking Unit, Dec. 31, 1954. Selected States.
Comptroller's Figures and Author's Restatement.

Arizona

to

Is

your

per

States

number

268.7

that

United States

tion:

469.5

Population

480

while

Reserve

the

of

32.2.

per

provement

density

the

statewide-

States,

measured

population

tion

mile,

increased by 29% but population
increased by 58%.

least

in view of the fact that
branch] whereas in Connecticut and North
banking States like Idaho, Dela¬ and
South
Carolina
population
ware, Maine and Vermont have a growth
was
relatively slow.
In
relatively small population per Rhode Island and California the
banking unit, whereas States like situation
deteriorated.
In
both
Florida, Illinois, Texas and West States the number of facilities in¬
Virginia which prohibit branch creased, considerably in California

Generalizations

from

New

average number of square miles
covered by each banking office
and
furnishes
incontrovertible
proof in the fact that a low population per banking office is quite

Florida

appli¬

an

banks

Maryland and Nevada the im¬
aggregates for the sec¬ provement was achieved in the
needs further examination! face of rapid population
growth,

banking,

facilities

standpoint.

branch-banking State, and Texas,
branching is prohibited,
showed approximately the same
population per banking unit
ihough Maryland had a popula-

increased substantially but
lagged
behind
population
growth.
In

on

served.

of

differ

where

other

the

not

furnishes an outstanding example
of the wide variations in the

degree, and Illinois,
however, the number of facilities

charter. Branches

unit

the pioneers of
progress,
as a concomitant.

as

to

sav¬

remaining
Delaware,

b 1 e,

a

cation for
rather

used.

In

shire

On

did

and

appreciably in population density,
On the other
hand, Maryland, a

strik¬

marked

a

supervisory authorities would

be reluctant to

pre¬

popu¬

we

Louisiana.

of

banking unit

was

Ohio, Florida and Texas the dis¬
or

number

538.

number of years, can still be jus¬
tified in many communities where

entirely

the

particularly

number

leads

1

Arizona, California, Nevada,
Oregon, Michigan, New Mexico,

In

is due

in

was

in the States
prohibiting branch
more
pro-l banking the number of facilities
prohibiting | remained practically
unchanged
branch banking."
This is exactly in most cases so that the deteri¬
what we.should,expect since the
oration indicated in the Table was
establishment of branches, though
primarily due to population in¬
they might be unprofitable for a creases. In
Colorado, Florida in

the

but

interest of clarity, we list
2 the States in which

dominantly to the higher

in

nounced in the States

Table

crepancy

whereas

declined: slightly.

each

Table

gregate population per banking
unit increased over the period,

3,606,-

in

Massachusetts

though, as we
not too fruitful conclu¬

of

interesting,

shall see,
sions.
In

cor¬

it

increase

branches

States

Louisiana,
Mississippi, but

and

increased

Mississippi
The

a

only

were

Louisiana

population
.

branch

area

the

marked degree of

a

hand, the number of banking units
deteriorated from 1 to 8,790 to 1
to 10,130 population in New Jer¬
sey in spite of an increase in the

study

some

limited

States

Massachusetts and

popula¬

We

State.

the

which showed

II

A

000

the

In

banking

ing

C

in

im¬

the

very

in

serious

broad analysis of Table 1.

the Market Guide estimate which
we

diffusion

within

come

due' to

population fig¬
by the Comptroller was
(1950 Census), whereas

2,771,000

the

tion

discrepancy

Florida

of

are

relating the number of
banking offices to population. One
of those, which the Comptroller's
analysis failed to indicate, is the
population density of the State
and

in
popula¬

3,210

Nebraska and 1 for 14,920

in

Ne¬

for

1

Florida.

3,300

pop¬

which

in

port

29

'

;

Resort
.

——

7'

Residential and industrial

108

25,353

38,566

0.65

Financial

288

0.07

Residential

87

6,806
17,826

89,096

Queens:
area.

Kings:
New York:

14,360

1.00

Richmond:

Residential and industrial

12

15,963

3,361

5.00

and

industrial-

30

30

The Commercial and Financial Chronicle

(186)

Continued

from

page

the

Banking and
Reader
Banking Facilities
On June 30, 1955, in
with 110 unit banks,

Montana,
there

which

56

had

Valley,
with

out

Mineral

and

County

1,402) and Wibaux County (pop¬
ulation 1,907) had one bank each.
latter

densely

counties

were

more

In

populated.

Nevada,
where statewide branch banking
is permitted, two out of 17 coun¬
ties, namely Esmeralda, with a
population of
614 and
Storey,
with a population of 671, were
devoid of banking facilities, but
Eureka County (population 896)
was
served by a branch of the
First

National

of

Nevada

County (population
two branches of the

had

1,850)
Nevada

These

of

Bank

facts

pointed

Commerce.15

would

branching

a

Bank

Landen

and

seem

that

Counties

more

economically
In

and

developed
counties

the

is

somewhat

are

bankless

the.

Montana.16

it

Eureka

Landen

than

Chronicle:

price structure, for free enterprise

8,300 in Butte to
population in Mis¬
In Nevada, Reno had one

facility for each 11,000 population
and Las Vegas had one for each
12,000 population.
We may summarize our conclu¬
sions as follows:
(1) the inclu¬
sion of mutual savings banks in

Comptroller's

analysis

is

questionable, particularly since 14
of

the

the

in« which

states

17

mutuals

have

operate

branch
a state¬

banking systems, eight on
basis and six on a limited

wide

(2)

basis;

area

the analysis fails

consideration

into

take

to

many

germane

to his

factors which

are

State by State
the relation of

conclusion;
(3)
comparisons of

to banking units are
discussing the rela¬

population
invalid

in

tive

importance of branch and
unit banking systems in the pro¬
vision

of

facilities; (4)
of the ade¬
quacy of facilities is the number
of square miles served by each
banking unit but this is predomi¬
nantly a local matter, and it is
not easy to
determine to what
degree a branching system would
the

result
of

banking

only

valid

in

more

average

test

facilities in

population

sparse

of

repudiation of socialis¬

tic

pricing via the edict of "fair
trade" legislation
that should
never have been passed. This ac¬
tion leaves abundant proof that
price fixing by edict is unwork¬
Day by day the American farm¬
is

being taught the hard way
that subsidies and parity prices by
governmental
edict cannot
co¬
ordinate
ture

the

general price struc¬
guarantee an operating

or

profit.
The American farmer has much

learn

to

areas

where

much

and

from

General

free

enterprise

Continued

supply and de¬
supply and

from

miles served by
unusually high; (5)

Joint

staff.

Committee

assumed

For

.

.

would

emphatic.

have

But

the

been

more

conclusion

is

McNally,

Directory,

edition.

J. Walter

Thompson, Population

Distribution.

189-193

Banking

and

7th

edition,

1951,

201-202.

Two With C. J.

in

Glazier

are

now

with

—

As

the

Joint

per

Committee

staff

it¬

self

mentions, 3% per annum is
also a possibility. If it is sub¬
stituted for the 2.5%, then—pro¬
jections
of hours, labor
force,
etc., unchanged — Gross National
Product

in

1965

would

be

cal¬

culated at about $565 billion.
The other alternative

obtained

if

increase

in

would

assumed

we

private

a

be

rate

product

of

per

approximates the
long-term trend, namely 2% per
annum.
In this case, again other
variables
projected
as
before,
Gross

National

Product

in

1965

would be estimated at about $500

Lester

L.
J.

Murphy Co., 443 Congress Street.

variable

simple

a

values

for

have

we

a

choice of
just one
range
of

that differs by some $60
If, in addition we should
inquire into the projections of the

variables, we might widen
the range. For example, the Joint
Committee
staff
indicates
that
National

would

Product

H. M.

Payson Adds

PORTLAND, Maine—Adrian L.
Asherman has been added to the
staff of H. M. Payson &
Co., 93

1965

higher by $40 or $50
billion if hours, rather than fall¬
ing off at the long-term rate of

to remain
just as they
have, on net balance, since pre¬
war days.
It would seem reason¬
able to suppose that the higher
per

annum,

present levels

rate

of

lead

over

were
—

in

increase

would

produc¬

believe

that

the

be

long

doubtful for
It

to

us

the

a

complete, even
it is especially
specific decade.

run;

be sufficient, then, if
quantitative estimates
of
Gross
may

in

sired, to speak of
order of $500 to
should emphasize
of figures within
plies

a

rate of

Exchange Street, members of the

come

Boston Stock Exchange.

order of




in

be

National Product

(Special to The Financial Chronicle)

ing

decade

We

changes

that bear
nificant

misleading.

But

per

1965

are

de¬

figures of the
$600 billion. I
that the bulk
this range im¬

growtl) in real in¬

capita of about the

magnitude

as

same

the rate

we

to the

serious

de¬

and

in

with

our

the

economy

Sig¬

improvements have been

made in

financial institutions

our

be

real

income per

revealed by history. The
growth has fluctuated from
decade to another; the long-

one

term rate is

merely

an

average

War,

forward,

must keep this diver¬

we

sity in mind.

It would be

exercise

tary

a

salu¬

to

place oneself at
some
point in the past and, in
imagination,
look
forward
ten
comparison of the ex¬
pectations with the actual changes
would prove illuminating.
years;

a

have

Cold

the

put

bulk

of

in¬

the

Range

of

If,

as

some

economists suspect,

some

order in this varia¬

our

par¬

But

the

it

government,

cards.

learn

to

is

economy;

not

entirely

We

the

of

have

nature

of

much

to

have

we

still

improve in our sources and inter¬
pretation of current information;
and
governmental
authorities
must

able and

be

appropriate

willing to take

corrective

action

prevent excessive speculation.
If

such

to
>

contraction occurred,
however, I doubt that it would be
a

influence

be
be

has grown

of

evident

before

than

in

responsibility
of government to lessen the haz¬
ards of unemployment and busi¬
Do these changes

depression.

ness

in

our

business

that the

suggest

economy

has

cycle

elimi¬

been

The contraction would

arrested.

the

preceding

any

and

easier.)

I

the

to

its actions, directly

where

production

of increases

as

entirely because

War,

would suggest,
chance

of

therefore, that
deep

a

and

pro¬

tracted

depression is slight; that
the chance of a sharp though brief
contraction is smaller than

but

not

there

negligible

are

doubts

some

knowledge

before,
long as

so

about our

self-discipline;
cycles of moderate expansion

that

and

will

contraction

and

avoided.
from

The

not

will

boat

shipping much

be

be

kept

in

water

a

nated?

blow, but that it will be kept on
absolutely even keel seems out
tomary for people to get together of the question.
to

time

this

At

of

it is

year

cus¬

if

year,

that

or

for

meet¬

more

ourselves.

I

the

and I

you

at least

or

,

think

and

one

ings of this sort,
with

also

not

following decade,

com¬

do

not

us

any

believe

It

is

in

fact

progressive economy to
instability. The millions
sons

whose

individual

their

improve

of

a

exhibit
of per¬

efforts

economic

to

status

constitute the fundamental

source

make their plans
in an uncoordinated manner. This,
along with other attributes of our
economy, is bound to lead
to a
our

you
at this
speculating. We
have had only ten years of mild
fluctuation about a high and ris¬

less erratic

at

course

large.

It

is

for the

hardly

likely—indeed, inconceivable in
an
enterprise
economy — that
those in authority could so ac¬

tion in decade trends—perhaps a
long cycle associated with popu¬
lation and related changes—and
we
can
grasp
its pattern and
meaning, we may be able to nar¬
row the range of future
possibili¬
ties. At the moment, however, it
would be wise to keep a fairly
wide range of possibilities in mind

curately

rity system—for

experience

events,

gauge

am

ing
level
of
prosperity.
Our
ability to withstand real depres¬
The next

sion is still to be tested.
ten

years

cial

provide that

test.

While

may

cru¬

be

reasonably ex¬
depression
avoided, it is less certain

that

we

will be able to avoid also

we

that

pect

may

protracted

and

so

quickly bring appropriate and co¬
ordinated
policy to bear, as to
iron out completely the cpurse of

business;
or
that
any
"automatic" machinery could be
devised to accomplish this task.

general

measure

some

inflation.

of

Cer¬

tainly it would be foolish to ig¬
the possibility.

nore

all

at

unlikely that

inflation will be

norance,

lack
in

one

For it is not
a degree of
of the prices

shall have to pay

we

progress

or

remind

me

,

the nature

in

Let

point that I

will

that all fluctuations

will be eliminated.

of

an

discuss the outlook for the fol¬

lowing

economy

there is

our

the scale of gov¬

well

as

indirectly, have far greater in¬

more

Probabilities

their

employment fell
comes
into the tax brackets and to catastrophic levels. (Of course,
thus have made government a if the contraction proceeded at a
more than proportionate sharer of
slower pace, the problem would

of

look

we

of

developments; including the Cold their

of

in

in

on

a

toe burden

ease

rate of

trends

that if

expect

modest

such

likely than

regulations; we have devel¬
an
elaborate governmental

capita

decade

made

protracted. After the shake-up in
speculative values, the powerful
of underlying forces and machinery
city and farm depression; the rise —and new machinery adopted for
in incomes and prices and other the
emergency — would
make

oped

machinery to

of us have met
anyone
at these meetings, even
when it was a meeting of one,
who was certain of the prospect.
It is clear that very few, if any,

past experi¬
ence
is not fully utilized if we
ignore the considerable variety of
our

I

its

its probability could be still more

much

of

next

this question.

on

And

in

in

and

contraction less

before.

lessened.

Depression?

familiar

all

are

many

value

not

administration have

demands

any

see

system

are

pression?

muned

would

economic

improvements

people

a

contraction.

severe

that

thinking about

us

have attended

and

rather

a

believe

ticular

main questions. Will the com¬

be thought that this
provide the most probable

Narrowing

by

alternative

offset

Clifford

It might

would

vent

I

decade

become the avowed

simply
interpolate
past
long-term trends in all the vari¬
ables &nd see what they added up

billion.

Here,

the

period except wartime; and it has

these diverse rates. When

manhour which

not

Maynard

brings

ernment, not

Rather than present a range, we

single

output

tivity the higher the rate of fall in
hours. But our experience does

(Special to The Financial Chronicle)

PORTLAND, Maine
R.
Young, Jr. and

our

Be

in most incomes;

might

ently experienced in recent years,
but above the long-term
trend.

the

Murphy

This

reductions

Jan. 6, 1956

to.

at

pp.

SPITZ

Biddleford, Maine

manhour of
about 2.5%
per
annum,
a
rate
somewhat below the rate appar¬

.8%

dubious in any case.

Final

RICHARD

Fortune's Rocks

ex¬

increase

of

rate

a

private

Gross

Its

ply and demand markets?

Looking Ahead to 1965

have proportionately
banking units to serve their

16 See

am¬

ply demonstrated.
Could it be
plainer that individual freedom is
best served in free enterprise sup¬

probable trends in the size of the have experienced over the past
labor force, in hours of the work, three-quarters of a century.
The
and
in
output
per
manhour. Joint Committee staff does not
Alternative possibilities result if seem to
be worried about the
we simply substitute other reason¬
American economy being mature.
able figures for those used by the I think they are right.

States, his conclusion to the effect
"people residing in States
branch
banking is pro¬

that

where

and

Electric has

of General

action might not be suffi¬
ciently powerful or rapid to pre¬

out

There

fluence

ample, the Joint Committee staff

about

during the decade.

Will

point1

other

1955.

sup¬

5

page

billion.

15 Rand

farm

going price in the
will again ignore
governmental edict, as the experi¬

Free

figures

needs"

inflexible

ports, for the
market place
ence

between

years

indeed, it is impos¬

think

to

appear

or

mutual savings banks, highly con¬
centrated in the branch banking

.

subsidy and parity edict.
Congress would better consider
the repeal of socialistic price leg¬
islation,
instead
of considering
or

tive

severe

and 1965;

the

had the Comptroller excluded the

more

disciplining action that
trade,"

consider

to

Electric's return to

markets.

mand

the

square

unit banks is

hibited

self

a

is indeed absent from "fair

flexible

able.

er

has

for

one

the

sale

Falls

Great

for 11,200

soula.

Electric

centered at
this
average

rapidly, and confidence in future
prices, if not volume, be severely
shaken, automatic or administra¬

our

tion,

it's

(39,214),
(17,581),
and
Missoula
(27,485) banking facilities ranged

one

gold as a
monetary unit will bring coordina¬

the

in

markets

Helena

from

with

markets

mand

a

is

the cyclical fluctuations that may

demand

supply and de¬

goods is

1985

years

Naturally,

trend without also

to free enterprise

General

of

return

speak of

in

would be influenced by the char¬
acter of the cyclical fluctuations

instead of chaos, into the
market place and to the general

The

in

Montana,
namely Anaconda
(11,254), Billings (31,834), Butte

1965.

sible

monetary unit in the

a

for several

age

now

cities

larger

in

(33,251),

of gold as
market place.

use

Editor, Commercial and Financial

favor

to

until

system

out

return to the self-discipline of free enter¬

a

of

(population

To

situation

experienced in the

Spitz calls for abolition of "fair trade" legislation and

Advocates the

prise.

hence.

so

of production and employment at
about that time—that is, the aver¬

Oi All Market Supports

Petroleum,

(1950 census)

1,337, 2,172, 2,081 and 1,026, re¬
spectively.
On the other hand,

The

Urges Abolition

price supports and

banking facili¬
Garfield,
Golden

population

Treasure

Richard

of

no

namely

ties,

counties

four

were

or

economic

really to speak of the trend value

Branch

banking.

decade

THE EDITOR:

TO

LETTER

29

Thursday, January 12, 1956

...

the

on

of

discipline,

keeping
I

the

for our ig¬
hand, and

the other,

on

an

on

economy

keel.

even

ous

one

would

not

suppose

seri¬

any

probability of galloping infla¬

tion, or that prices would rise in
every year.
The kind of inflation
we
may experience
would most
likely
wise

take the form of a step¬
upward movement in price

levels, with the rate of increase
averaging
out to
a
relatively
modest annual figure.
Our

experience of the past ten
has, of course, included the
Korean
episode
and
therefore
when we peer
into the future. of the extent of our economic cannot be accepted as an unquali¬
This is especially necessary when knowledge and intelligence would fied indication of what we may
we calculate the
burden of long- lead to the conclusion that fluc¬ be in for. It would be risky also
term commitments—for example, tuations of modest amplitude are to assume that the past few years'
those implied in our social secu¬ out of the picture. Nor would any experience is sufficient to allay
be

bigger

rise

at

if

the burden will

productivity

should

rate

lying in the lower
portion of the range of possibili¬
ties suggested by history.
a

Up to this point
viewing 1965 as a
business

trend.
staff

we

have been

year

of

good

sitting astride the decade

For

the

Joint

projections

Committee

assume

some¬

Nothing we know of the nature of
our
governmental machinery or

have

we

the

postwar

may

properly ask of

mental

and

during

What
our

we

govern¬

monetary authorities

is

that their

to

contain within

tuations that

had

decade.

actions

our

be

sufficient

limits the fluc¬
economy may

be

It

is

possible
could

that

economic

deteriorate

with

thing

like a 4% unemployment extreme rapidity. In the ensuing
(about equal to the average scramble, especially if — indeed,
1953
and
1954) and so, im¬ because—the preceding boom had

rate
of

plicitly, do the several alternative
projections mentioned.
no

one

the

ment

would

precise
in

Of course,

seriously ask about
of unemploy¬

state

any

particular

year

a

been

characterized

any

by consider¬
able and widespread speculation,
values might tumble rapidly and
drag down production and em¬
ployment. Should events move so

fears there may be of serious
We have to speculate

inflation.

basis

largely on the
considerations,
and

ous

and

inflation.
we

are

general
the

preclude

not

do

these

of

experience,

not

seri¬

danger—of

possibility—the
that

expected to generate.
conditions

years

But while I suspect

not yet know enough

do

not yet

willing enough to

inflation, I believe
that we do know enough and—
when the issue actually arises—
avoid

will

some

be

willing enough to
inflation.

severe

remains

to

be

But
seen.

avoid

this,
The

decade will teach us a great
about

our

national

too,

next

deal

character

as

Volume 183

Number 5498

The Commercial and Financial Chronicle

...

(187)
well

the

as

limits of

knowl-

our

edge.
l

cannot

take the

—but also

add

may

word

a

about

our

expectations concerning the
eral major price levels.

past,

we

of

rise

rise

in

that

The

the

wage

than

on

Historical

real

time

to

discuss

fear of stagnation is not

government saving,

estimates

of

it did before the

us as

since

govern-

then

have

climate

of

fears of the

and

hind. There may,

the

must make shift with the

we

the

balance

on

account

—

rate—

receipts

government's
tnat

current

that

too far

toward

increase

(less transfer payments)
minus governmental expenditures
all types of goods and services.
If this difference should prove to

vestment,

be

be

largely

wage

reflect

the

national

we

further

expect

that

the

cost

of

living will rise more than wholesale prices. These expectations of
differential

price

movements,
should be noted, do not hinge
whether

we

inflation

or

have

a

it
on

of

measure

not.

We turn

Not

years
to

question of

tionate

ago

many

increased

bring with it

it seemed
to assume

income

than

more

increase

would

a propor-

in

savings. This
danger that
investment outlets might be insufficient to absorb the savings
that high incomes generate. You
Will recall the talk in the 1930's
drew attention to the

tendency for savings to exinvestment, or—what is virsame thing — for production
to
exceed
consumption,
with resultant depressing effects
on the actual level of production
and employment.
a

ceed

tually the

There
the

several

are

theorizing

of

hnsic

the

people

like

Raymond
that

thp

nf

1930's

is

Largely

on

hard

Simon

cppnlar

of

work

Kuznets

Goldsmith,

thp

why

reasons

undergoing revision.
thp

billion

be-

opinion

is

some

swinging

fanciful

state and local

on

of the

expecta-

it

and

appears

inrrpasp

in

real

income per capita in tnis country
—and in other countries as well

govern-

savings

more

our

ing the chance

of

in

inrnmp

fallen

bit

a

+ Vint

euro

basic

into

fit

without
and

the

not

earlier

substantially

the

revising

hns

piece

to

easy

theorizing
it
implications
altering

it.
also

have

rise

are

evidence-along with
facts-is

drawn from
We

tprm

we

important

This

empirical

other

rate

any

inm*

nn

nrefmed

have

even

mav

At

added

something

economic

prog-

processes,

materials

new

—

the future

as

the

stubborn

as

the

it

as

And

war.

have

effect,

changes.

refer

to

The

to

just

rate

of

I

have
such

one

family

new

formation
will be

capital

the average
annual inin number of families will
be lower than the annual increase

in

the

next

10

years

greatly influenced by the

birth-rates of the 1930's and early
1940's. During the next few years,
the Bureau of the Census has esti-

recent

mated,

capital has been moving
into this country; our modest capyears,

crease

ital

exports have been overbalanced by foreign acquisitions of
assets here. This inflow may come
to a halt eventually, and the net

during the recent past. The bottorn in new family formation may

balance swing in the other direction. By 1965, to cite a specific
projection, the Joint Committee

of

staff assumes

factors

new

appearing on the scene which
may cause further shifts in sav¬
ings habits. These may, indeed,

are

add

reduce

to

to

force

the

factors

tending

the

come

next

towards the close of

decade, for the number
of

persons

20

age

constitute

the

to

a capital export of
$2 billion a year—much less than

will reach

marry,

effect

some

on

group

to

34, who
most likely
a

low

point

the volume of

sent abroad during the 1920s. It
seems doubtful that, in the world

the volume of mortgage lending,

But I hasten to add that the rate

°f, tod?y> when governments put o£
all sorts of obstacles

in

the

caPital import, much more

new family formation is not the

sole

of

way

determinant

be mand.

can

on

of

housing

de-

A final word. Looking ahead is
something we all have to do, uncomfortable speculation though it

lar to us-

be. However, as Robert Frost

But 1 do not wish to imPly

marked recently, everything

a

re-

been tacitly assuming that savings hastened to add that this is no
would find uses either in the excuse for being content with less
Prlvaf sector or in the public, knowledge than we can acquire,
As 1 ilave already indicated, the He is a wise man.
Continued from first page

at given levels of income. For
example, the uncertainty of em¬

ployment and income is surely a
major reason why people put
money aside for a rainy day. Con¬
sider, therefore, the possible. im¬
plications, for savings, of another
10 years of high and fairly stable
employment, and along with this
experience penetration into the
consciousness

the

of

in the

off in

insurance

ment

and

mass

of

other

how

govern¬

people

be viewing the future at that

It

is

not

unreasonable

therefore,

pose,

home
a

government resorts to inflation

the

are

thereby shriveled.

.

If this

a

were

...

high peacetime prosperity, such
justify going further into debt

tax cut at the expense of our children."

all that the President had to
say, or

the remainder of his
message

did not in

when making their pro¬
jections, in fact assumed a decline
in
the
personal savings-income
ratio, from the recent years' aver¬
age of close to 8% to one of about

wickian sense, we should be the first to

6%. This implies a volume of per¬

in

that what he is

so

some

$7 billion

more

$5 billion
of

the

more

But
can

unfortunately there

not be

past five years.

What

will

happen

to

the

na¬

tion's rate of total saving will de-

pend not only

on

should have

a

great deal of

on




company

are

"In

ignored. First, in regard the international situa¬

order

.

.

Recommendations will

.

be submitted,

designed to supplement with Federal tech¬
nical and loan assistance
local efforts to
get on with this

vital

job."

Roads, too,

are

urgently needed. "In

Feb. 22, 1955,"
says the
be taken to
tem

over

cost

of

my message

President, "I urged that

complete the vital 40,000 mile interstate
sys¬
period of 10 years at an estimated Federal

a

approximately $25,000,000,000. No

adopted. If

of

measures

we are ever to solve

our

program was

mounting traffic prob¬

lem, the whole interstate system must be authorized
as
one
project, to be completed
approximately within the
specified time."
Another
is

what

is

Congress

of demand for funds in

source

termed

move

"human concerns."

promptly,"

says

"I

large amounts
urge

effective program of Federal
assistance to

an

that the

the President,-"to enact

the

existing deficit of school class rooms."
implicit if not outright demand for funds:

help

erase

And another

"Other needs
of social welfare include
increased child wel¬

area

special attention to
children.

.

.

dependent
juvenile delinquency, and
the problems of
mentally retarded

attack

The nation has made dramatic
progress

.

in

conquering disease
significance which can
tensified
well

effort

balanced

on

in

of profound human

—

progress

be

greatly accelerated by

medical

research.

A

well

an

in¬

supported,

of research, including basic re¬
frontiers of knowledge, prevent and
relieve
suffering, and prolong life. Accordingly, I shall

search,

program

can open new

recommend

a

the support

substantial increase

of such

effort, I shall

a

program.

recommend

a

As

new

in Federal
an

funds for

integral part of this

plan to aid construction

to

help provide
medical

more

research

teaching facilities and
adequate support for the training

manpower.

.

.

.

We

must

cushioning the heavy and rising costs of illness

aid

in

and hos¬

pitalization to individuals and families. Provision should
be

made, by Federal reinsurance

extension of
more

or
otherwise, to foster
voluntary health insurance coverage to many

persons,

areas.

Plans

especially older
should

be

against the costs of prolonged
There

are

persons and those in rural

evolved

other passages

to

improve

or severe

protection

illness."

which might be cited to show

that the President is bent
upon very

substantially expand¬
ing Federal outlays. Enough have been listed to make it
plain that, whatever care the Administration may be tak¬
tional

Government, it has

funds from
many

no

intention

of

New Dealish projects. His

withholding
program

is

strongly reminiscent of those of Franklin Roosevelt—and
that

our

friends may better

achieve the

.

• greater

prosperity.

ing to inject prudence into the financial affairs of the Na¬

other passages which

tion. he says:

personal savings

corporate savings, which

we

strength that

is

our

common

goal,

it

is

accompanied by voluble lip service to sound fiscal

,

they need

j

gen¬

industrial

Pick¬

applaud—and

i

—and

imply

Heavy Proposed Outlays

than the cur¬

billion, and some
than the average

we

a

if

doing.

sonal saving in 1965 of $23 billion,
rent rate of $16

any way

saying here needs to be taken in

feel certain that

eral

of

balanced budget for the next fiscal

we can never

give ourselves

the research

on

of non-federal medical research and

"Under conditions of

now,exist,

expanded drive

markets, new crops and new uses.
Development Program to better the lot of low-

.

ending June 30, 1957.

year

to

savings accounts,

expect the budget to be in balance during the fiscal

"I shall propose a

of

.

or

ending June 30, 1956.

year

present levels, if not a slightly de¬

I Report,

increase in the cost

people's savings, whether in the form of insurance,

"I

as

clining trend, in the personal sav¬
ings-income ratio. The staff of the
Joint Committee on the Economic

an

bonds, pension and retirement funds

sup¬

continuation

supply. This inevitably results in deprecia¬

living. Every investment in personal security is threat¬
ened by this* process of inflation, and the real values of

will
time.

to

budget is for long put

bankruptcy is thei result. But

and

our surplus disposal
Congress to provide sub¬

fare services, extension of the
program of aid to

of

the

to the promotion
personal security. When we
ask what savings may be in 1965,

asking

or

other

resources.

new

children, intensified

in the Federal Government.

tion of the value of the money

programs

are

business

of the money

of

we

a

or

balanced

a

in similar circumstances

people of the contribution of so¬
cial

heme, in business

achieve

agricultural

requires funds. Says the
President: "We must
help deal with the pockets of chronic
unemployment that here and there mar the nation's

in the

We See It

When achievement of

an

of

strengthen

I shall ask the

funds for

new

to

reserve

use

cur¬

in most serious

crops

income farm families deserves
full Congressional
support.
The Great Plains
Program must go forward vigorously.
,
!
"Area
Development" also

ever

dearth of domestic opportunities done of importance was done with
'<»' investment. Indeed, I have insufficient .knowledge. Frost

As

surpluses of

conservation

a

...

The Rural

I started out by talking

about migration within this country; and there are other factors,

acreage reserve to reduce

adjustments in the

front, to develop

new

the fraction of nationaljsavings housing demanded and thus

of savings

the volume

needed

then. This will undoubtedly have

in fact

before

seemed

some

difficulty, and

an

stantial

population

time

to

our
knowledge of the factors
affecting
savings.
The
savings
"function" no longer seems to be

rent and accumulated

by

merit, that possibility may
safely be omitted from our
calculations of the future.
National
saving
exceeds
national domestic investment when
In

overexpanded agricultural

plant. This will include

activities.

not

exported.

And then for the benefit of
the farmer: "I shall
urge
a soil bank
program to alleviate the prob¬
lem of diverted acres
and an

authorization of

I shall
urge measures to

any

is

of
continuity in economic assistance for
develop¬
projects and programs which we approve and
which
require a period of years for
;
planning and completion.
Accordingly, I ask Congress to grant limited
authority to
make
longer term commitments for assistance to such
projects, to be fulfilled from
appropriations to be made in
future fiscal
years." V
ment

In addition, shifts in the direction of investment will be caused

concern-

31

assurance

tion of investment.

gov-

expected. Even countries which
_hn<! nnt hrnneht an increase in
have been major outlets for our
the Average proportion of income f°rei8"
investment might consaved.
Indeed, the records hint ceivably decide to interpose obthat savings
in relation to na- ?tac es. on grounds already familtiprmi

in-

past, great changes in the
regional and industrial composi-

national

inflation

our

these will mean, in

easily turn into a
important item, howspeculations

for

happens to total inwithin reason, we can

that

sure

new

could

If

ever.

The

of

outlets

new

will bring shifts in the direction of investment. New products,

savings of the private

component

about

ress

ment account, with the Federal
budget in balance—it will absorb

much

many

reasonable
that

deficit—and the Joint Com-

a

ernment

savings.

of

the

left

instead, be

Whatever

mittee staff, for example, assumes
for 1965 a modest deficit of $2

sectors of the economy.

to the

now

tions

on

some

Savings

of

and

seem

vestment.

productivity of which
have already spoken. We may

will
in

Events

changed

opinion,

1930's

danger

is, governmental

troubling

war.

greatly

ment savings have been prepared,
but current statistics are lacking

difference—

more

living.

sev-

As in the

expect

may

will

rates
cost

the

I

policy.

J

\

I

32

The Commercial and Financial Chronicle...

(188)

ward.

1 frnw Href r>nnp
^ominuea jrtnn ji bi y y

52%

.

WF

(a«

DA«%tiAM

^

HQ

rAnflOl

l\6aS0H Mwl

A

m

Ul

■

*

extended

I.TAnlt

ATIClimAT

VAvUll

used

loans, the first
have is that they

indication

we

here

ence,

the

are

behind
in
their
They are delinquent
30 days, then the delinquency increases to 60 days, and then up to
90
days.
After 90 days delinquency, the loan or debt is considered a loss, and is wiped off

automobiles

the

Annlianr*

.

To al

einiuency

?

•

*n

1955,

''

have

required

mass

availability

the

mass

bear in

2.4U

3.2U

June

2.46

2.90

2.49

mind

J.2U

when

everybody

cjation.

very

-

w''

Delinquency Kates

lion obtains monthly reports from

member

all

banks

country.
These
reports
many
things, but among
things

several types

011

what

those

Consumers
1930's.

per

°frins^fnf

delinquent.
lates

II.

War

delinquency

Month

by month,
home appliance

on

more

IhLc fnnJnrripr bi^taimpnt loans
th^sake of shnnlicity we
m^eht consider those in detail
What does thl American Bankers
For

Associaticm have to report

de-

on

its^mtomobile

hncniencv rates on its automooue
hnquency rates on
The latest

monthly figures published by the American

today, and paying them
promptly than they have at
nme since the war. Does this

change, in
in spending

Bankers

Association

direct

on

automobile

levelg

0n

on

the

same

for

auto-

in

cnanges

income

but

there

somewhat less empnasis placed
tnis relationship today
One

retaiieis.

lJus

remarkable

rates for the last five months

industry

^standing

direct-to-the-consumer

bile loans.
the

I

compare

figures

months

for

of

the

on

1954:

days

and

October

.76

July

.98

.79

June

.r

i

f

*.

A'*,

delinquency

automobile

below

last

n

To

lelinquency rates
mobile loans

they have

are

ever

World

since

irnii

you

rates

loans

year.

on

further:

direct auto-

lower today than
been at any time

War

II.

very small fraction

a

buying

public

cred^

of

wild

runs

purchases.

The

„at leagt 97% of the

to

and

doe£,

looking at

bulk

b_
care-

overexteud

turn

^ Off

in Advance
When the slightest hint of

consumer

in

today.

reason

is

ll

there
credit

consumer

un-

1

no

to-pay

•

1

^

autos,
are

are

curtailed,

and

in

it

a

nitpH
cueu.

to

agency

substitute

was

automobile

ar-

loans
A

standard

to

quarter

income

of

a

Dattern

dev'eloped'in thiscount^The

proportion of
shrinking,

middle

poor and

but

income

rich people

those

in

the

brackets

have

shown a sharp increase. In the
mid-'30's, the big layers were the

spending
year

units

$2,000 a
These people made

less.

or

getting

nearly 80% of our spending
units. Today, only 23% are in this

up

group.

In

mcreased.

year

the

1930's,

constituted 28% of the total

speri(iing units. In 1953, they

the sPandinS units In the
thev received about

posable

personal

increased

income.

than

more

times

in

a,

,

Since

group has
in

and

in-

thi

led

credit,

made

that

the

in

upsurge

,

.

lump cash
reasoning applied
to their purchase of a
tQr> £urniturei ^ anything e]se

a

matter

of

fact,

we

restraint

of

given to

its

the TV industry, the re-

frigerator industry, washing

buying has acted to stimulate

ma-

and

is

pro-

employment-which

m turn have maintained employee

might

credit

consumer

The

sum.

same

rSefrigera-

needed.

purchasing

a

power. That employee
power m turn

buy washing

ma-

chines, refrigerators, TV sets, air
conditioners, etc
Well, we have
the figures on those things, too,




v*

ricfun St<?c™7 Excban&e

member for tbe Past 27 y?ars, was
named for the office of Chairman
kefs Boart of

77777
n^fna ffn I
committeeac?
n

eordine

to

an

announcement

?

McCormtk
h7

s

ttermm
post will

e

filled

be
the

at

annual election

Feb.

on

13,1956. John
j

Mann

J«me5 R. Dyer

re-

was

the only man

to hold that position for five
secutive terms.
Thp

ivrominafin?

hpaJpH

hv

rommittee

lissetto

Tohn

fivp

hi

con-

also

rV^nlar mSr«

for

e

And

have

we

as

gratuity

fund

for

three-yea

a

term.
Mr.

Dyer, who was born and
in New York City, began

raised

his Wall Street career as an order
clerk for Shearson, Hammill &

Co. in 1927 following the receipt
0f

BA

a

degree from Manhattan

College
market

ner,

He

became

salaried

a

employee for Dates & Dyer

P hfs

in 1928.

father

was

yrt.

a

In 1929 he became

a

seen' their record on credit Pay'

member of the old New York Curb

Evi-

Exchange and was elected to partnership in Dates & Dyer.
He was first elected to the Ex-

buyers

their

off

pay

as

that businessmen

they promised.

a

are

credit

obligati0ns

exactly

N0r

stimulus which credit buying has

.

ExpJains Credit Growth
^ard •terms four non^
bls,Jf
significant fact be- regular members, also fr
££ gr°wtH of consumer year terms and 0 e trus ee c

that good
the

,

named live regular
three-year

rmwiii

tell yau

Other Industries

and

nm

Pay.tof an of
auto while they used
it—instead
one
y

*

two-and-a-

number

rredif

■

«James R. Dyer, stock specialist

come.

FYnlainc

m

Q||3|f||tA||

56% of total dis- tiring Chairman

or

1929, the middle income

half

were

year,

$125 billion,

r

fc,

families in

the gr0Up having $3 000 to $7 500
a

o

||B

f

the other hand

Qn

produc-

income

instalment

Helped

duction

I

can

change's

not

are

1946

credit risk.

to

June

1955

increase

of

assetg

of

that

there

$19<5

has been

biiiion

in

an

the

am

j

savings

institutions.

In

including mutual sav.
-ngs banks, life insurance companies> savings and loan associations> and pension funds. If con_
sumers

are

running

credit buying> how do

Board

and

has

of

Governors

served

most

on

in

of

the market's

credjt buyers spending
From June, 1954

aU their income.

wiid*

over

account

we

bought..for the record total of savings
washiftg.} these days? The answer is, as

portant to all

durable

sets

look at goods» was recently estimated,
automobile credit..Automobile in- Professor Paul W. McCracken of

like

For examPle' let

stalment

might

sufficient criterion.

made

past

new

■

J

1

-

'

income. The

Nor do I want to overlook

Ihor! and sales'

Hp^Iinnpnov

might be home
appliance paper—i. e., instalment
loans

more

main
which
possible.

For any Wash-

II-"-

llOfTtl 113ICQ SS

marked

^ ,hP dnlrinims and
country out of the doldrums, and ments is incredibly good.
den^y from 97 t0 99% 0f

off

pay

■%„-_.

UVvl

much

go

the

He

principal committees,
elected to three-year
1947, 1951 and 1954. In

was

terms in

1952 Dyer was eiected Vice-Chairman

of the Board. He is

of the

New

York

a

member

Athletic

Club,
Sons of Saint Patrick, The Cardinal's Committee of
The Frifendly

the Laity for Catholic Charities in
Diocese of New York and

in the

the

American

Stock

Exchange

Five & Twenty Club.

Nominated

as

regular member

Its effect TV sets, refrigerators,
Governors were
Graham
Bell,
h" may well be to dampen industrial machines, furniture, etc.
.finance people know, that almost Hayden, Stone &
Co.; David S.
curtail employment
How credit buying has been im-: all credit buyers have more as- Jackson; Gerald A.

^

better

more

h«S dan&erous procedure.

commentators

that direct

safely

of

frt production,

k*

n°I

ington

As

J

the
a

is

buying

stimulates

7^,7™

many

dure.

h>

n

fh^ ' inrrpdihlv in
fiSnri*1T nave jusi
vfavp in«S
ngureb 1

fire

creates

7ei? kn°+Wn' g0 farther' Unwise and untimely purchasing

si
? !
1
n/Shw
nM

gue

it with discretion

typucai

During

This is something we

aU want to avoid,

any vulnerable
If anything, con-

because

century

has

they

This is

and

far from typ-

A

Some

current

*

rpctraint

n

S

easy" to-

down payment
on

1
OT commercials

Si,

that

This

employment is heard or when
there is the slightest threat that

questionable proce-

promising
years

too

is

u

The pub

thinking

believe

some

into

unproven judgment for the proven chine producers, furniture manuic has
l^en misled mto performance of consumers, seems facturers, etc. In every case, credit
that the TV commercials to me to be a

ur

„

to

time,

people buy
future income

any

upsurge jn credit than there

been

in

fact deserves consideration.

credit

probably the single most importar,
force, behme the upturn

American buying public has shown
itself fully capable of using cred-

danger

no

not

in

credit

of

instalment

A1/ ^aie,,iyo

With delinquency rates at
the lowest point in 10
years, what

overextension1

is

rising
the in-

itself

so common, that I must
apologize for telling you this. But
many people outside the finance
mdustiy do not know this. The

there

on

first

try to plan their production and
sales, knowing that there will be
no further
clamps on consumer

consumer

9.r.
'
b?se middle-income famllies are the people who use conuse
of instalment credit makes sumer credit most.
As their inthe
economic
system
work
on
corpes increased, their standard of
more
cylinderSi
Credit
buying living rose. They saw no reason
stimulates production which in wby they could not (for example)

their credit obligations in advance,

A reasonable analyst,

is

position today.

When

converted

power.

the

buying

nQt

Americans rush

Danger

these figures, would conclude that

certainly

of

the

is

autos,

cars.

is

with

vast

be—uses its credit wisely,
full

overtime may be

nomr

No

use

far

are

go

on

of

creased

buy

for

reason

tion and creates

look at ttese figures

that

direct

production

only

Ciation.

-find

Another

is

consumer

cars

American Bankers Asso-

If you

impor-

more

trine is not too popular in some
circles. But my own experience
over the years has shown me that

Source. Instalment Credit Commission,

therefor^ creates
demand for automobiles.

Iot of

the

heretofore. But it will
permit the manufacturers, wholesalers, and retailers of this coun-

good

are

seen,

sumer credit could

rubber, they

°rr^2®^

1.00

r*

credit

on

1.00

'

.74

-——-

But

American

expert on managing his own
affairs
I know that such a doc-

1.02

.74

the

a

delin-

an

1.01

.73

—

August

0

tant,

1954

has

tion in half.
have

we

evwy^ew^workcrs^epends6 on ?2,?0 °f
seven worKers depends
iatter

rates.

quency

over)

1055

V

support^ generally tne
thepetolemn
and
is

.r®'c0Jd automobile sales, and steel, flat glass, nickel, and lead.

on

in

reasons for the rise in consumer
and .1 do not mean just credit. Without such available
Wlld spending on the part of un- credit, many of Vthese factories
restrained and irresponsible con- would have to cut their produc-

is

?ani^.and banks are resP°nsibie of automobiles,
for this fine

(30

September

on a

car industry

largest single buyer of

in tne face

snowing

Delinquency

,

automobiles—only

"
Sma
7utslanaing'
every
these with
In part the high credit standsame
five ards maintained by finance comr *
automo-

Direct Automobile Loans

*

true witfl

1thefacemf record credit sate
D7

But there

concern.

As

aSS

Thig remark_

sh°wing is being made

more

changes that have taken place in
tbe distribution of income. This

js

credit

consumer

order. Not that there will be

nf

higher

able achievement is being made giant scale. The

loans, are dated Oct.
31, 1955. Here are the delinquency

instalment

on

sumers.

pro-

_

1(Jw

take

as-

was

mobile industry itself has a good
I do not wish to clutter up my deal of influence over fluctuations
remarks with t0° ma"y fig»res- in income.
but you will find that delinquency
"
rates on pelsonal loans show the
Production Creates Demand
same trend' Pe0Ple are Paying
The ac* of producing anything
their instalment loans more generates a certain amount of inP,romPuy than at any time since come and tends to create a dethe war' and delinquency is at mand for itself. The same thing is
record

nicfHWi™

the

than

more

a

on

before

babkslo^
***** 3 dangerous overextention loans home app a
tion
homeapplianceloans" S'°n °f consumer credlt?

nnlT^i,o^?uf;tP1hn„fM7of

N

Spending for automobiles is still
thought to be primarily dependent

by

Antmnn'

placed

back

mobiles.

auto loans

any

31%

years

with

portionate

their

and

that

So

change in income

a

direction,

In short, people are paying their
loans

hold

can

been

unnecessary,
One might therefore wonder
why
there were
any restraints

by

one.

spent

most

sociated

Customers Paying Promptly

appiianCe

in

war,

loans is 29 to 40% below last year,

home

wants

consumers

cars.

more

instalment loans made

cover

worid

one

here, that these

everyone

restraints have

In

declined

increased, car buying bolted upward. In 1934, for
example, income rose1* 14%, and

home

on

are
lower today than
tbey baVe been jn any year since

rates

banks. They show
cent of the loans are

by

held

per

cover

the delinquency

are

the

over

delinquency

as

' appliance loans, the record shows

'

The American Bankers Associa-

its

far

'As

t..

-

that

dent to

this, you

when income

delinquency rates today?

nation.
The restraints have
been mild, but it must appear evi-

t

mission, American Bankers Asso-

What are

the

sales requires

mass

credit.

°^e wheel of the auto, without place. And second, one might well
affecting the other three, is an wonder when Washington will
Nearly all unrealistic assumption.
signal the end of its restraining

cars.

income

danger sign to the whole finance

banking industry.

sales, and

New Distribution of Income
Washington is concerned with
11%
spending on cars dropped the rise of consumer credit to rec37%. Conversely, although people ord breaking levels. It is perhaps
do not have to buy cars, nearly proper for fiscal
authorities to
1930,

Source: Instalment Credit Com-

and

of consumer
credit, will undoubtedly affect the industries of
uses

that few peo-

can postpone buying.
illustrated this in the

3.04

instal-

consumer

pie have to buy

2.27

by consumers. The endeavors of
officials to restrain the legitimate

du-

consumer

assume

flash a

symptom of disorder. They

of

basis today—
by the finance industry, and

both

Any uneconomic and
unnecessary hobbles on consumer
credit will immediately have an
effect on sales and production. To

must

'

*-jl

—

production

of automobile sales.

loan*

October
September
August -July

credit

and

very conservative

a

stimulates

sales, while credit buying stimulates production. Consumer credit

.

_

When you consider all

Delinquency rates on
are
the
first

books.

In

and the terms of

payments.

consumer

.

delinquency ment credit have been

figures:

falling

begin

,

production

way:

important factors in the high level

and for any skeptics in our audi-

buying,

instalment

on

instalment

on

,

Here, too, the cycle operates the
same

In recent years, three-fifths of rabies are tied together insepaa11 Purchases of both new arld rably. Mass production requires
credit.

or

instalment

consumer

Important for Auto Sales
#«

At

VUXlllUl

»

vUCifll

m

f AMIvaI

an

credit.

m

i

mm

0

Today, it constitutes about
0f

Thursday, January 12, 1956

portant
credit

paper

part
since

instalment

has been

of

total

instalment

the

early
borrowing.

accounted for 42%
and

credit.

years

In

of

1929,

downs,

automobile

of total instal-

After

the
loans

various

volume
has

the

im-

an

when automobile instalment
paper
amounted to only $1.1
billion, it
ment

consumer

us

ups

of

new

shot

up-

University

cently
.

all

found

consumer

of Michigan,
that since 1940,

re-

of

durables

purchased,
from 73 to 77% were bought on
instalment. Consider the significance of that.
In 1955, about
$37.5 billion in consumer durables
bought.

were

cent

of

credit.

that

Seventy-seven
total

was

bought

per
on

than

they owe. Most people
keep a nest egg in the
They like to keep reserves

to

bank.
with

insurance

like to have

form

of

don't
matter

soend

"how

companies.

some

value

They

reserves

in the

home.

They

in

a

every

last

attractive

cent,

no

the adver-

tisements.

in

credit is

are

that

con-

being handled

on

the past,

Named

as

governors

diner,
Louis

,

Affect Employment

All the indications
sumer

board

nonregular

were

Thomson

Reich

member

Robert

Reynolds

O'Hara,
,

tf'

Sexton, Sexton & Smith; Leo G. Shaw, Salomon Bros. & Hutzler; and Frank
L. Walin, Joseoh McManus & Co.
Jackson and Walin served on the

&
&

Reich

M.

Co.*

Gar-

Walter

McKinnon*
&

Co*

and

Stanley E. Symons, Sutro & Co
O'Hara, Reich and Symons served
on

the board in the past.

Symons,

.Volume 183
J

►

.

Number 5498
'

•

...

The Commercial and Financial Chronicle

maintains his office in Cali¬

who

Continued

jrom

fornia, is the first representative
the

of

Pacific

Coast

American

the

to

Stock

board.
A.

serve

term

people

The Outlook for Business

;

Trustee of the Gra¬

as

productivity

Rissetto

the

on

Nominating Committee were H.
Jones, Eastman, Dillon
Co.; Edwin Posner, Andrews,

to

&

Rothschild;
Stern

and

Ira

in

Stock at $10 a Share
M.

Loeb, Rhoades & Co.
is offering 222,000 shares of E. J.
Korvette, Inc. common stock at a

price of $10 per share.
Net proceeds, estimated at $2,000,000, from the financing will be
added to the general funds of the
company primarily to provide the
required capital for future expan¬
sion of the business. A portion oL
the proceeds may be required to
equip and provide initial inven¬
tory for a new store planned for
Westchester County, N. Y.
E. J. Korvette, Inc. is engaged
in the business of selling various
retail

at

through a
group of nine stores. The princi¬
pal types of merchandise carried
and
sold
by the company are
wearing apparel and accessories
for men, women,

children and in¬
fants; household appliances of all
types; jewelry;
luggage; radios;
television

sets;

giftware; house¬
wares
and
furnishings;
linens;
piece goods; toys; sporting goods;
juvenile furniture; groceries;
meats
and
produce.
All stores
operate under the name of "E. J.
Korvette" with the

same

manage¬

policy of
trading at low mark-up is applied.
All sales are for cash only.
Five
of the stores are operated in New
York
City;
the
others
are
in
White Plains, N. Y.; Hempstead,
and

ment,

uniform

a

N. Y.; Carle Place, N. Y.; and the
ninth unit is expected to begin

operations
N.

Y.

ing

in

soon

Negotiations

on

West
are

additional

an

Islip,
proceed¬

department

store to be located in Westchester

County, N. Y.
sales

net

of

the

for the fiscal year
Sept. 30, 1955, aggregated

stores

ended

$36,292,393,
amounted to

My answer
optimist.

an

Backward

$14

little. In 1954,

a

billion. There followed

reduction

in

stockpiles of all
accumulated for defense,

recovery

in

who spent $18 billion more

sumer
on

while net
$1,175,740.

profit

goods

consumer

billion

$3
It

had helped produce
But it was the con¬

we

Europe.

and

almost

for

new

houses.

more

the

was

remember,

consumer,

who

started the economy on the
upward trend again. To meet his

demands, industry had to start
building mope factories, more ma¬

chines,

to

he

addition

pressure,

into

the

wanted
this

to

inven¬

more

fabricate

goods

sumer

In

buying

and

tories

to

con¬

own.

consumer

state and local gov¬

our

ernments

carried

struction

program.

The

final

favorable

on

total

large

a

billion

$360

annual

all

forces

Gross

the

to

common

like

a

of

amount

common

PHILADELPHIA,

Pa.

—

delphia-Baltimore
changes,
Elkins

on

Jan.

Wetherill

and

Schiffer to .limited

will

Ex¬

admit

Herbert

F.

partnership.

to

v.'d'J

Adtiiit

to

Did

in

The

third

Money

coming from?" First,
did

where

must ask
consumer
get his

the

last

money

business

We

year?

its

got

we

know that
from re¬

earnings, increased depre¬
ciation, and new financing. We
know also that during 1955 con¬
sumers
increased their spending
by 7%, and at the same time paid
$1 billion more in income taxes.
The plain fact is the worker con¬
part of the money he
greater
earnings.
boosts for the total labor

got

sumer

needed

a

from

force averaged

considering
tion

from

worker

This

about 4%, without

increased
overtime.

enjoyed

compensa¬

The

factory

total increase of

a

in average weekly pay.

increase

transmitted, in
industries, to the white collar
was

workers., The

of

with offices at 1528 Walnut Street

Partners
Martin

in

a

are

Mallin.

securities business.
Max

Fischer

Both

were

and
pre¬

viously with First Investors Cor¬

poration.^

..




result

was

1954, and the third
1955, and undoubtedly
further

in

the

fourth

The Farm Problem

the

long and

tragic his¬
the periods of

tory of the world,
man's

demand.

to

market for farm

that

this

for

10

crop

was

made

ever

in

to gear produc¬
A fairly priced

products is

be

may

is—is

it

limitation—

operating,

confident that

the

we

value

land will continue to grow
economic
importance
and

in

prestige

it always has through
all
history. The farmer is the
primary producer. Without the
efforts
duction

is

a

his

toil, all other
Food

ceases.

pro¬

production

great
national
well to remember

It is

place

in

economic

our

progress.
The

Debt Problem

To return to

study of where
the money they

our

gol

consumers

came

increased

earnings. But, as
the plain fact is "they

borrowed it." Yes, borrow it they
did. But at the same time they
increased

their

holdings of
liquid assets. Incidentally, thisois
something our farmers have done
very
well
during
the
past
15
years. It is significant that con¬
sumers'

33

their

than twice

as

much

debt

this

from

economists

that

way:

Most

pattern

of

the

couples buy
their

make

a

the

new

their

married

younger

houses.

parents

small

down

youngsters

Some¬

help

them

payment.
into a

move

house. After that they are on
own. The parents like that.

Children

parents
come

along. The young
ahead and their in¬

come

get

They begin to think

grows.

about
do

something

runs

new

times

Then

better

a

known

77%

has

decades,
"

today,

social

and

that

us

population

as

Even

years.

scientists

of^fhe

less

or
our

world's

than ,enough

eat.

All

house.

something

Soon

about

it.

they

Records

show that though we make mort¬

this

paradoxical

makes
our

all

the

more

over-abundance

of agricultural products. And
it
points a serious indictment at our

inability
markets

to
for

create
the

satisfactory

products

of

the

as

the

earnings of workers go
rapidly as in 1955, because

extra

25%

more

goods,

dollars

5%

more

for

all

for

all

increase

not

must

we

much

move

our

$10 to $15 billion in output

into

hands.

consumer

How

can

do this?

we

V

Tax

Reduction

a very sound and tested
is to lower taxes. That will

leave

more

in consumers'

money

hands.

In

will

this

work

out,

you

Something like this:

The

the
date

it.

in

disposable income.

turn

spending,

will

thereby

encourage

moving

prod¬

ucts and services. All that is

Have

The

we

convinced

expansion,

good.

tried this before?

ever

is, "yes."
January, 1954, total taxes
were reduced
by $7.4 billion. This
reduction came just at the be¬
ginning of the 1954 recession. This
released spending money helped
answer

it

as

at

During the
have

lifted

than

six

was

perhaps

that

reason

one

go

$7

and

national

our

from

of

one

sub¬

a

increase

billion,

changed
to

at

up

total

for
of

surplus. This is

type of surplus ho

one

years

more

a

year.

to purchase needed raw mate¬

us

from

in

foreign countries and
helps to bring pros¬

turn

perity to all the world.
The

continuation

"

of

our

prog¬

will

ress

require the increasing
cooperation of the various ele¬
the

of

well

as

of labor

all

with

we

the

of

the

full

over-all

of

goal

part.

a

mutual
and

be

aware¬

desires

society

boldness

faith,
and

ing together intelligently,
have

with
work¬

we

and

their

don't

fast—

very

fathers

and

like that!

mothers

The pattern continues this way.

While the children

are doing this,
paying off our
debts and we are also continuing
to pay on our life insurance. This
gives financing institutions larger

oldsters

are

from

which

loans

use

freedom

that

is

hours

twenty-four

a

day for all the people of America,
and

for

all

the

people

of

the

world.
And

therein

promise,
limited

lies

the

hope

future

of

the

greatest

and

the

un¬

America.

plains about.

To Be Watson Partner

Economic Policy
We

have

talent

national

a

for

thinking. Today, the bold
is to plan for continuing
economic growth, to plan to fi¬
nance
it, and
to
buttress
this

PERTH
A.

policy

growth

with a*favorable govern¬

fiscal

ment

another

policy.

way,

we

To

can

say that
determine

the amount of prosperity we shall
have in 1956 by wise management
of our money supply, realistic ex¬
tension and management of debt,
and

decisions

sound

the

in

taxes

The

of

area

about

a

AMBOY, N. J.—Monroe

Weiant,

Feb. 1, will become

on

partner in T. L. Watson & Co.,

members

of

the

York

New

Stock

Exchange. Mr. Monroe is Manager
of

the firm's Perth Amboy office

in

the

Bank

Perth

National

Amboy

Building.

our

fiscal

policy.
is the issue

final

question
timing. In government,
as
in football, a sharp play fails
if it is badly timed. Well timed,
of

proper

the

old

Statue

of

Liberty

why

be

no

investment.

That

debts

increase

must

The

instant

debt,
who
see

incurring

are

he

is

in

saves.

All

the

the

off

pays

an

new

houses

of

to

save

a

these days.

a

istration

debt and

I

The combina¬

in the

city of

more

saving is resulting

more

growth of this distinguished
yours.

»

;

months ago the

18

the

announced

fiscal

1957 and make decisions

1956 and

that
into
At

will
and
the

lieve that

cerned
than

prosperity
beyond that period.
moment, some men be¬
carry

we

our

should be

more con¬

stimulants.

possible
inflation
planning for economic
But

that

type of un-

bold thinking will not

icies to sustain

our

the days ahead

dictate pol¬

economic vigor

of us.

jointly, which
have not
acted with untimely speed, neither

gress

policies to meet
economic
problems
which
arise in the year ahead of us.

will adopt ;ound

may

does

all

this

add

up

to?

You and I will agree
a

lot

cancer

when

chances

are

we

have

to detect it

of

curing

much

so

better

an

opportunity

before it talks."

it adds up to
of things, most of them good.

We know that

our

That's
have

why

we

periodic

urge

you

health

that always include

ups

to

check¬
a

thorough examination of the
and,

in

and

generative

women,

often doctors
cer

in these

the

can

areas

patient has

the

breasts

tract.
detect

Very
can¬

long before
noticed

any

symptoms.
For

more

life-saving

facts

phone the American Cancer

Conclusion
What

...is the way our doctors put

it—"Our

skin, mouth, lungs and rectum

We have everv reason to assume

that the Administration and Con¬

any

...before it TALKS

with

with

Des

lot of people

tion of debt and saving and

12 to

with carelessness in these matters,

individual

outskirts

example of good timing,

an

policies which are responsible for
cur
strong
economic
position
today. It is time now for us to
look ahead to the latter part of

a

are

debts.

more

anyone

becomes

around

As

in

growing society. Some people

others

play works.

are

savings; otherwise, there

our

woiSa

caa;

expanding

an

leaders of the Eisenhower Admin¬

house

of

the

can

reached.
and

cooperating

everyone

all

are

responsibilities
a

needs

members

By

the

and

shared and with
ness

need

farmers, as
of the general consuming

public of which

Only

Business

economy.

will

management

com¬

between

better

a

we

by

dollars

We have thus helped the rest of
the world keep busy and prosper¬
ous.
Our own prosperity enables

cash

state

a

ten

imports

under

The

expansion

past

our

billion

producing

to

the

which

economy

rate.

determine

rate

to stop that recession. The result¬

revenues

to

proceed without danger of in¬

ing increase in production, busi¬
ness activity, and incomes caused

deficit

economic

our

is

the

to

budget

we

flation and excessive boom.

continue

stantial

which

to whether

as

can

In

tax

have

we

accommo¬

wisdom

much

so

continue

can

to

means

The

need is not

we shall con¬
steady growth in

a

am

financial

support

lowered taxes will enlarge

the consumer's

That

year

opinion,

my

business. I

ments

How
ask?

the

time, it is
necessity of

winded."

rials

I think
way

in

same

fully aware of the
avoiding excesses, of not "getting

that

-,k:

into

certainly training

durable

will

But

more.

smart kids of yours seem to move

given

spent

as

overtime

Moines give evidence that we are

opportunity to grow and
prosper with an expanding stand¬
ard >of living geared to the for¬
tunes of our great nation.
Although consumers generally

it did last year; nor will

total

up

the

our

to

even

farmer's toil, and to see to it that
he as well as organized labor is
an

$10

of 18, 20, 25 and 30 years
maturity, the average life of all of
them
is
only 7J/2
years.
Those

gages

always paying off old debts, while
of

they did last year,
more overtime.

as

At

tinue to have

bold

learn

the

of

expenditures

ahead.

That is

problem. We ex¬
$15 billion more in
total
output this year. Yet our
debt pattern will not accelerate as

as

debts.

We

this year

year.

huge commitments for capital

goods

we

So here is

pect

holdings of liquid assets

grew more

last

feeling.

much in 1956

of

source

did

especially from

as

of

in

much

as

it

pat¬

total debt

Nor should we expect the total
earnings of workers to go up as

of the

and lack of ade¬
made to those younger families.
supply
have
been
measured in ages and centuries—. Actually if we save more, some
and the bright days of his plenty other
groups must go into debt to
been

as

part

a

food

fewer

rise

1956

debt

our

much

temporary

such

accelerated

the general

of that picture. And all the while

resources

hunger

quate

to

Funds Associates has been formed

tion

we

all

In

Stock

to engage

overall

the annual rate of personal
disposable income rose by about
$17
billion
between
the
third

tell

PHILADELPHIA, Pa. —Mutual

resources

money

tained

Whitcomb & Co., 41 East 42nd
Street, members of the New York

Form Mutual Funds Assoc.

soil and

billion

the

we come to the all impor¬
question: "Where's the money

economists

Exchange, on Feb. 1, will
admit Sidney B. Ashmore to part¬
nership.

last

National

Now
tant

have

Whitcomb

the

heartening to note that the
farm
problem is receiving con¬
sideration now at the place where
the
remedy must be applied. I
refer to the rate of production. It
is only prudent conservation of

farmer's

Come From?

Stokes

Stock

19,

in

It is

also

Where

Of

farms is down

on

the biggest harvest
the United States.

strength.

quarter.

of the New York and Phila¬

living

million

to the rest,

Co., Land Title Building, mem¬

bers

somewhat

income.

know that the number

from

increased

&

no

And yet the 1955

years.

larger
larger

ably expected to reach $400 bil¬
lion—some predict more—in the
early part of 1956.

quarter of

Stokes & Co. Admit

A

national product which is reason¬

quarter

shares.

farm

net

course, we

con¬

that

of

dollars.

spent, of course, much of it

of

shares

gross

smaller

new

him¬

quarter of 1955. It is that rate of

many

1,222,000

fewer

for

found

brought
receipts, and a

these

was

$392

attained

rate

about 8%

stock and 75,000 warrants to pur¬

this

tern, I do not think

more

farmer

output

Product from its low of less than

Upon completion of the current
financing, outstanding capitaliza¬
tion of the company will consist

chase

about

this law of nature, and respect the
of

outcome

upward

elevate

with

several

ministration cut defense expendi¬
tures

Wage

Consolidated

eight

did

excepting, of course, our "stra¬
tegic stockpiles." Also our exports
were a little greater, thanks to the

Korvetle Common

merchandise

houses—the

of people

Look

Let's look back

goods

Carl

am

goods

we

after the truce in Korea, the Ad¬

a

nonregular members.

as

A

in

than

do it?

we

is—I

one

more

1956

mem¬

Haupt & Co.; and Theodore
Winter, William P. Hoffman &

Co.

that

Law¬

regular

as

bers and John Brick, Paine, Web¬
ber, Jackson & Curtis; Ira Haupt,
A.

services, and 17%

farm

billion

and services

in 1955. Can

M.

we

$10 to $15

&

rence

means

self

Lawrence

Posner

farmer. All this in¬

per

in

because some
becoming
nervous

are

will

and

man

crease

have to find ways to market some

tuity Fund.
Serving with

the

Nevertheless,

Ludlow, J. A. Ludlow

& Co., was nominated to a threeyear

Our Problem

4

page

on

Exchange

v.

John

(189)

.

American

Society office nearest

you,

or

write to "Cancer"—in

care

of

your

local Post Office.

econ¬

is remarkably strong—that
it is increasingly stable. Business
has
tangibly expressed its con¬
fidence in continued progress by
omy

American Cancer

Society

(

-

34

The Commercial and Financial Chronicle

(190)

Continued

from

labor has been much exaggerated.

7

page

The

most

opinion

Textile Industry's Economic
Outlook Highly Attractive
already poor health of our indus¬
try and the jobs of our employees
for the purpose.

; During
the
long and tedious
period ahead that will be required
to raise living standards in the
under-developed
areas
of
the

world to something like our own,
protection must surely be given
to
the American
laborer.
It is

but

thing is posi¬
monopolies.
I think that vertical integration
has about reached
its peak for

industry,

one

tive—we have

no

the

present. The need for vertical
integration soundly exists in the
production
and
distribution
of
staple
fabrics
particularly
for
such

some

end

wear.

On the other

well

uses

that

be

men's

as

may

difficulties

the

hand, it

out¬

which covered the exterior of the
New

As

to shut

also

the

office

of

mills

built

they
put up in the under-devel¬
oped South instead of the over¬
developed New England.
South¬
new

were

mill

ern

management

was

the

markets.

textile mills that is the

Companies

to

Merge,

A
great deal
has
been said
lately, and I imagine much more
will be said in the coming session
of

Congress,

the

on

subject

of

mergers.

4 The mergers

Ijhat have been tak¬

ing place have simply been re¬
alignments within the industry
brought about either to eliminate
the weak and poorly managed or,
more importantly, to permit exist¬
ing companies to diversify in line

lier.

with

profit

a

the

the

multi-

capital involved for that segment
of the operation; or it no longer
justifies its existence. The danger
lies in that having once vertically

recognition

companies
better

of

have

simply

been

buys than

new mills would
There will, of course,

been.

more

and I think they
either from the need

mergers

arise
further

desire

to

diversification

expand

the

or

production

on

the

part of aggressive organiza¬
tions in need of additional facili¬
ties.

show

must

commensurate

development

As

have

for

fabric

of

distribution

and

blends

a

will

manufacture

of

the

fiber

be

the

industry we discussed ear¬
I pointed out, existing

with
and

Broadly speaking, the
degree of vertical integration
seems
to
rise
during times of
scarcity
and
to
decline during
times of surplus.
People either
integrate to get an assurance of
sources
of supply or to control
distributive channels; or for the
purpose of acquiring an additional
profit margin. The latter seldom
proves itself.
Under highly com¬
petitive conditions every stage in

The

purchase

of

machinery
of
existing

risk

and

integrated, organizations tend to
overlook this basic fact and soon
themselves

find

entitled

three

to

profits but making only one. The
whole
free
enterprise
system
which

under

have

we

successfully

so

operated

this

in

country
depends for its permanence and
success

the procurement

upon

of

do

believe

not

the

in

primarily

are

South

production

distribution

and

of

for

some

to

years

mergers

is going to be debated
political basis perhaps a word

the

the

in

the

aspect of mergers is in order. The

as

to

textile

hours

cer¬

tainly there is

on a

and

come

on

political
business

its

end

today

and

as

anti-trust

or

is

individual

as

product. There is not
there cannot conceiv¬

ably arise for

to

years

come

important concentration of

any

power

very indication that
development of our economy

permit
for

will

decade

next

be

population—except, unfortunately,
key

management

This

personnel.
already had a
upon the styling of

trend

has

major effect

which
could seriously reduce either the

merchandise and upon patterns of
distribution.
The greatest effect

present

has

with

and

any

one

company

terrific

just

as

tunities for

competition

important, the

or,

oppor¬

to provide

newcomers

future competition.

Certainly
t h e r e
are
some
f'giants" in the industry, and the
ciated

with

is

which
that

in

I

am

asso¬

category—and

is the largest textile operation in
the

world.

nomic
some

ours,

need

There
for

is

real

a

the

eco¬

existence

of

large companies, such as
for the following principal

reasons:

(1) Large chains and other large
distributors of fabric and garments
need

large

of

sources

supply

in

order

properly to plan their re¬
quirements
that is to have a
—

source

of

meet their

trations
areas

size

in

distributive

have exceeded similar

con¬

centrations of textile manufactur¬

ing.

-it

->:V"

■

:•

■

'■

(2) The cost of experimentation
in
the
development of fabrics
made

from

blends is
must

be

so

new

fibers

very

great that there

and

new

a

felt,

of fabric

now

a

but

the

informal and

more

use

harmonious

existence is

of textile

to

such

an

permanent part

development and

manu¬

There

has been

decentralization

a

trend toward

of

garment

The

opportunities that exist in

industry

for

the

in¬

genious, hard-working individual
are
probably greater today than
in the
history of the industry. We
have

many

shortcomings




in

our

Scrap^pf^ces^hqwever, continue their

v

seeking

The

the

2,388,000

based

textile

of

and

industries
will be

pronounced.

inevitable

that

tion

is

Institute

announced

that

th*

ingot

steel

and

for

castings

the

capacity

like

placed

was

1955.
of

as

a

week

a

of

128,363,090 tons

month

A

year

2,007,000

at

comparable

because

of

as

with

compared

week

ago.

Jan.

1956
1.

is

1956.

ago

the

ago

the actual weekly produc¬

tons

rate

83.2%.

or

capacity

is

was

The

higher

100.3%

and

operating rat*

than

capacity

in

The percentage figures for 1955 are based on annual capacity

125,828,310 tons

as

of Jan. 1, 1955.

within

think

I

annual

on

not

Electric Output Shows Recovery

important

those

Steel

industry's ingot production rate for the weeks in

For

industrialization, the establish¬
ment

and

production 2,421,009 tons.

toward

move

of

tons

The

industrial

an

Iron

97.6% of capacity and 2,403,000 tons (revised)

under-developed

world

the

of

areas

American

operating rate of steel companies having 96.1% of the steelmakinir
capacity for the entire industry will be at an average of 97.0%
of capacity for the week beginning Jan. 9, 1956, equivalent to

in England.
increasing

manufacture of

gain

to
As

status.

upward trend. "Steer?"

"price composite on steelmaking scrap registered $52.17 a gross
ton in the week ended Jan. 4, a 34-cent increase over the
preced¬
ing week.

it

is

in Latest Week

J From Holiday Week Declines

countries

will

also

barriers

erect

or

*

•

manufacturing have well served
these varying requirements.

textiles

is

likely to decline ;
maintain its present pace.

than to

more

In summary

Mill
The

Migration

movement

of

mill

facturing centers from
to

another

is

complicated
movement

from

New

eastern

manu¬

region

one

somewhat

problem.

of

more

The

major

the textile

industry
England to the south¬

states

plished,

has

though

further

some

a

been

there
to

moves

such

as

water

The
ment

tax

rates,

supply,

extent
of

to

textile

etc.

accom¬

will

be

the South

costs,

power

play

which
mills

then, I feel that theu'industry in this country ^
entering into a period which j;

week in

v.*

Car

1954.

*

Loadings in the Christmas Holiday Week Decreased
14.5% Below the Prior Period

textile

some

textile

Scattered increases in steel prices continue, but they did not
"Steel's" price composite on finished steel in the week
It remains at $127.68 a net ton.

always one of the first
to come to a country

industries

expects

The amount of electric energy distributed by the electric
whatever tariff
quota systems may be ~ light and power industry for the week ended Saturday, Jan. 7,
11,057,000,000 kwh., an increase above
necessary to protect these young ' .4956, was estimated at
tralization.
Life in a sunny out- infant industries as they start to - the week ended Dec. 31, 1955, according to the Edisoh Electric
Institute.
of-doors climate requires differ¬ develop, and such protection will
;•
This week's output advanced 306,000,000 kwh. above that of
ent types of garments and differ¬
continue to be extended to therii *
the previous week; it increased 1,224,000.000 kwh. or 12.7% above
ent
colors from
that
in colder until they have reached
the comparable 1955 week and 2,232,000,000 kwh,-over the like
climates.
Localized
styling and This means that world * trade in"

manufacturing a r e a s. Increased
facility
of
communication
and
transportation
simplifies decen¬

large concerns Ibefore the trend
finally reaches
equipped with huge laboratories its
consummation.
and with budgets large
enough to
The textile
industry basically
permit the expenditure of the
uses
unskilled labor and, there¬
kind of money
necessary to bring
fore, pays unskilled wage rates.
to
fruition the proper
develop¬
Accordingly, widely dispersed,
ment
of
chemical
discoveries.
Once done, this development work reasonably sized mills, located in
areas where the cost of
living is
quickly
becomes
the* common
relatively low and where there
property of all and is, therefore,
are few industries
employing
available to large mill and small
skilled labor, is an economically
mill alike.
sound development. Other factors
the

everyone

and

climbing.
In addition, the steelfor negotiation at the end of this
the result to be higher wages and

are

up

affect

products in the areas of
consumption.
Since textile pro¬
duction
depends upon unskilled
labor it is

costs
comes

ended Jan. 4.

textile

those countries

facture.

supply large enough to
requirements. Concen¬

of

been

carefree life with the

products

T

company

already

trend toward

half

will she again
changes not now

the

their

contract

higher prices.

world textile market that she

toward

respon¬

inventories

point¬

that

out

workers'

used to occupy nor

trend

fatten

pressure on plates are the heavy requirements fcr
construction,
pipelines and freight cars. Plates are beginning to be needed by
shipbuilders, too, this trade weekly observed.
Not only is high consumption a stimulant to buying, but sc»
is the expectation of a price increase. Steel
producers are

was.

major

to

Current production represents orders booked 30 or more
days ago, "Steel" noted. -4--y&'i -y
The most critically short steel product is
plates. Following
closely are structural shapes, sheets and bars, in that order. Putting

no

unless"

want

survey

all-time

an

orders.

industry has

foreseeable take place
There
will
be
an

our

quarterly

This is

This is helping to keep the over-all demand for steel
high,
producers booked up for as far ahead as they will accept

textile industry.

leisure

segment

latest

with

longer the great industry
Of course, they still
make
some
very
fine goods in
certain
specific
categories,
but
England certainly no longer oc¬
cupies the dominant position in
the

its

to

high. In the last quarter, some
23% hoped to add to their inventory, but the survey showed only
15% were able to do it.

pat¬

ing

of

increased

every

such

dents

metalworking weekly said that three out of 10

of comoonents.

somewhat followed the pattern of

is

question

The

textile industry there.

once

i

this week,

than

The British textile

increase

97.0% of Capacity

wage

lower

even

November

Inventory building of materials and components will intensify
during the first quarter, "Steel" magazine forecast on Monday of

rates in India
they are in
Japan there is apparently no im¬
mediate fear of damaging Indian
competition due to the protection
being extended there to the "cot¬
tage mill."
This protection for
the
small
one,
two, three loom
family operation has great politi¬
cal significance in India and so
long as it continues will prevent
any dynamic development of the
Although

are

the

Steel Production Scheduled This Week at

now

terns is in order.

it

whole

rose

The department noted that most of
stemmed from higher replacement costs.

A further word on world textile

It

this

and

next decade.

tion.

Since

of

they are primarily con¬
by the mills.
I do not
believe that this pattern is likely
to
change
particularly
in the

values for existing companies are
at or above the level of cost of

The present trend to suburban¬

of the month. On this index, manufacturers' in¬
$30,000,000; wholesalers' inventories, $100,000,000,
retailers' stocks $250,000,000.

ventories

sumed

through acquisition
companies will cease when market

ization will undoubtedly continue

see

is

inventory index as adjusted for seasonal
$650,000,000 during November to a $81,400,000,000

total at the end

where

the New England

equipment.

Department's

merce

produced

that

and

the

considered usual for that time of the year. As a result, the Com¬

The raw
materials that supply our textile

industry

of

factors climbed

with

case

added $1,200,000,000 worth
of goods to their
during November, the United States Department of

business inventories to $82,600,000,000 at
month—compared with $81,400,000,000 at the end
of October and $78,200,000,000 at the end of
November, 1954.
November's inventory buildup was somewhat more than is
the end

garment manufacturing.

profit in each step of the
chain of production and distribu¬

new

will

we

decentralization

of

kind

that

a

fair

Businessmen

inventories

management and the result was
inescapable.
The factors which
bring about decentralization of
the garment manufacturing indus¬
try are not as important in textile
manufacturing and I, therefore,

get into the volatile areas of style

More

123,200 units,

the preceding week's 105,670 unit figure;

over

Commerce reported.
This brought total

more

efficient, more aggressive, more
dynamic than New England mill

world—not to lower them here.

we

increase of 16.6%

an

Industry

output for the latest week is tabbed at

car

were

weigh

when

States

management.

obviously desirable to raise stand¬
living in other parts of the

advantages

4

page

The State oi Trade and

buildings
out the light

mill

England

seemed

from

from

Thursday, January 12, 1956

was

ards of

the

Continued

important fact in my
that the ivy vines;

...

the

part.

a

is

well make it one of the m^e
prosperous industries of our
country. The conditions of prob¬
able supply and demand suggest
may

such

a

conclusion.

I

feel

that the

dynamic growth of the man-made
fiber industry is likely to continue
as
it has in the past.
I believe
that the textile industry is a good
business to be in and that it will
contribute

towards

share

its

.;>

*

Loadings of
decreased
to the

New

freight for the week ended Dec. 31, 1955,
14,5% below the preceding week due

4 ' ",'C"

:

'/••

r*.

U. S. Automotive Output Advanced

Previous New Year's Day
Jan.

16.6% Above

Week

Output in the automotive industry for the latest week ended
6, 1956, according to "Ward's Automotive Reports," rose
over the previous New Year's Holiday week.
•

16.6%

H. W.

Day Incorporates

(Special to The Financial Chronicle)

KENNEBUNK, Maine—H. Wil¬
lis

Day

been

&

Company,

formed

Fletcher

with

Street

securities

to

business

Inc.,

offices

of

H.

has

at

continue

Last week

Day.

Officers

are

H.

Willis

62

the

Willis

Day,

President; H. Willis Day,1 Jr., and

from

Richard

W.

Day.

the

industry assembled

compared with 105,670

England to the South

was a flight
high-cost labor to low-cost

or

'

week's

units,

an

an

estimated 123,200

(revised) in the previous week.

production total of
or

cars

increase of 24,227

and trucks

amounted

cars,

The past
to

142,954

units above the preceding week's

output, states "Ward's."
Last
week

move¬

from

cars

Loadings for the week ended Dec. 31, 1955, totaled 574,663
cars, an increase of 45,277 cars, or 8.6% above the corresponding
1954 week, and an increase of 96,858 cars, or 20.3% above the
%
corresponding week in 1953.
> '

the

American economy.

revenue

Christmas Holiday, the Association of American Railroads

reports.

well-being of the

prosperity and

97,692

by

week's

17,530

car

cars,

vehicles during the

150,585

cars

output

while

week.

rose

In the

and 20,694 trucks

above

truck

were

that

output

of

the

previous

advanced

corresponding
assembled.

by

week

6,697

last year
•

Last week the agency reported there were 19,754 trucks made

Volume 183

Number 5498

in the United
week and

States.

20,694

The Commercial and Financial Chronicle

This compared with

year

a

...

13,057 in the previous

ago.

(191)

road

Continued

Canadian output last week was placed at
4,315 cars and 761
In the previous week Dominion
plants built 2,686 cars
and 705 trucks, and for the comparable 1955

from

2

page

the

trucks.

week, 5,760

838

The

and

cars

trucks.

Business Failures Rose
Commercial and industrial failures

„

finite

Moderately
to

rose

Security I Like Best

dividends

modest

patience

and

and

have

in¬

Currently
per

share

(1946-55

a
large capital gain over a
long period of time. The stock is

the

stock

is

with

in

198

holi-1

the

day week ended Jan. 5 from 174 in the preceding
week, Dun &
Bradstreet, Inc., reports.
This upturn brought failures to the
same toll as a year
ago but slightly below the 202 in the similar
week of 1954.
Continuing below the prewar level, failures were
down 37% from the 312 recorded in 1939.

traded

in

market,

the

times

Over-the-Counter

i

,

'

while

Failures

with

143 but did

with

liabilities

1955

toll

$100,000

of

liabilities
not reach

under

24.

of

$5,000

a

increased

more

year

to

170

Small failures

ago.

$5,000, dipped to 28 from 31 but exceeded

Seventeen

businesses

compared with

or more

or

the 174 of

failed

with

liabilities

and
a

commercial
ago,
level.

1955

service

while

year

9

to

all

from

other

11.

lines

More

had

retailers failed

mild

declines

than

from

the

during the
rising to 61

with the toll in the Middle Atlantic States
52, in the Pacific States to 58 from 42, in the East North

week,
from

Central to

At

27

from

24

in the West

and

South

Central

17

to

from

present advanced stage
general market, I would

derived

be inclined to look for issues with

These

from

variety,

favorable

investment

stature,

in¬

equipment industry.
The com¬
pany's
activities extend,, impor¬

characteristics

relative

earnings,

better

a

than

Canadian failures edged up to 26 from 21 in the

compared with 38 last

preceding week

year.

protected div-

varied industrial

d

e n

The

Dun

&

Bradstreet

wholesale

mildly lower in the first week of the
Jan.

on

flected

5.

This

droo

a

512-year

new

compared

of

11.8%

low,

new

with $5.97

from

since

or

^6 75

June

a

food

ye?r

turned

previous, and

ago.

1950,

index

it

Higher in wholesale cost last week
hams, cottonseed oil and lambs. Lower
butter, milk, cocoa and eggs.
The index
31

represents

foodstuffs

raw

the

and

wheat, rye, oats,
flour, corn, lard,

were

were

in

meats

general

price

pound

per

and

use

its

Wholesale Commodity Price Index Held to Narrow
Range of Week Preceding
The Dun & Bradstreet

continued

to

earlier

and

with

Holiday
week and

a

irdex

at

278.61

dullness

daily wholesale commodity price index

narrow

on

same

in the

range

final

of

week

prevailed

in

leading grain markets last
well below that of the previous

week last year.

very

week

with

causing increased anxiety

the outlook for hard Winter wheat.

New export business in the bread cereal was
negligible but
the government continued to ship substantial
quantities to many
countries

on

practically

independent strength
nouncement that

giveaway basis. Rye continued to show
some
buying influenced bj the an¬

a

with

1955

more

crop

has

had been impounded under
than was the case with 1954

heavy export demand. Sales of grain and soybean futures on the
Chicago Board of Trade last week dropped to a daily average of
26,900,000 bushels from 31,200,000 the previous week and 47,600,000 in the like week

a

year

ago.

Domestic bookings of all types of flour remained
the

past week.

out

the market in

early in the
The

slightly

Buyers

new year

coffee

generally showed

the belief that

a

very

slow

disposition to

wait

wheat marketings will

expand

was

lower reflecting

uncertain

slow roaster
little effect

with

demand.
on

the

trending

Renewed

talk

of

But

the

was

usual

and

clearance

exceeded

sugar prices held steady in moderately active trading.
prices remained fairly steady with year-end evening up
operations featuring trading at the week-end. Total cocoa arrivals
during 1955 were reported at 3,539,811 bags comparing with
3,561,627 in jl954.
Vegetable oils were featured by continued

firmness

in

cottonseed pil with
buying influenced by pending
export business and good demand in the cash market. There was
considerable
investment
buying in lard.
Prices were

steady

to

firm

on

purchasing

export trade in fats and

oils in

influenced
the

next

by

prospects

few months.

mostly
big

for

Livestock

Cotton
and

price movements held
closed

in

the

narrow

slightly lower for the week.

range

There

There

some

selling induced by year-end liquidation of holdings and uncer¬
tainty over the effects of the pending export program and the
prospective loan rate for this year.
Supporting factors during the week included
foreign price-fixing, continued large loan entries
sibility of a tight free supply situation later in the
Entries into the CCC

and

the

and
pos¬

year.

1955 loan stock in the week

ended Dec.

reported at about 407,000 bales, bringing total entries for
the season through that date to
5,252,000 bales.
were




was

the

of

new

and

produced a
rail-

now

composition

new

level

in

decline

were

retail

volume

last

However, volume
similar period last year.

numerous.

the

of

interest

consumer

used

high dealer inventories
The

total

dollar

automobiles

*

in

small

electrical

dropped

noticeably

and

reported.

were

volume

but

new

program are new devices to
bat

com¬

and

minimize "hot boxes," a
type welding machine, appli¬
cation of precision casting tech¬
niques, pilot work on new air¬
new

parts, manufacture of
intricate passenger car tire molds
in

iron,

laminated

plastic

bear¬

ings, etc.
The

of

production

powdered

metal friction materials is

tively

venture

new

being produced
matic

for

Brake

are

in

use

transmissions,

rela¬

a

for

Shoe and these materials

now

auto¬

for

clutches

earth moving equipment and air¬
craft

brakes.

is

It

expected

that

numerous
other applications for
these'materials will be developed.

Last

June

the

company

ac¬

quired the Denison Engineering
Co. (Columbus, Ohio), in a cash
transaction. Denison manufac¬
tures

hydraulic presses, pumps,
motors and automatic controls for
wide

variety of uses.- This
n e d subsidiary had
sales of about $10,000,000 in 1955,
a

wholly

6W

-

this

and

should

few

next

double'

the

over

years.

American Brake Shoe's sales for
1955 increased to

lion

about $141

mil¬

$110 million
year
before. Net income is
estimated
at
about
$4.55 "per
compared

with

the

share

(excluding a 90 cent per
profit from the sale of se¬
curities), up from $3.19 per share
the previous year.
From present
indications, the

in

trade

4%

the

period

ended

8%

to

higher than a year
according to estimates by Dun & Bradstreet, Inc.; Regional
estimates varied from the,comparable 1954 levels by the follow¬
ing percentages: New England —2 to -f-2; East and Pacific Coast
+3 10 +7; South +1 to' + 5; Middle West and Northwest +6 to
-j-10 and Southwest +7 to -f 11%.
was

ago,

There

noticeable drop in apparel sales the past week,
volume was moderately above the level of the cor¬

was

but the total

a

responding week a year ago. Consumer interest in women's hats,
handbags and lingerie was maintained at a high level, while a
slight increase in the volume of knit dresses, skirts and sweaters
reported.

was

a

Sales

in

men's

furnishings

noticeably

year.

-

Purchases of television sets considerably exceeded last year's
level, while furniture retailers reported a slight expansion in this
dollar

There

volume

was

a

that

over

slight

of

increase

a

year

in

the

ago.

call

hardware

and

boosted* their

purchases of fresh meat and frozen foods the past
week, while volume in poultry decreased considerably.
Wholesalers reported
the

1955

ible

into

common

convert¬

shares of

2.491

common

stock through

Sept. 30, 1957. Full
would
increase the

conversion
Common

full

would

well

close

to

$4

per

share,

the current $2.40 divi¬

over

dend

some

earnings

1956

estimated
be

by

Even' assuming
(which
is \ not

conversion

likely),

is

outstanding
shares.

490,000

rate, and the present

only

times

10

Finances

price

earnings-

such

healthy, with total

are

slight increase in bookings last week,

a

rent

liabilities

and

net

working

capital of $25.7 million.
Briefly, the shares offer better
than average value in view of the
upward trend of operations and
earnings, (2) capable management
and

for

building materials the past week.
Although grocers reported a decrease in food sales a week
ago, the dollar volume was somewhat above that of the same
week last year. Volume in fresh produce, canned foods and baked
goods
Exceeded
the
corresponding 1955 levels.
Housewives

and

1,108,039 shares of
The preferred is

stock.

current assets 2.4 times total cur¬

Consumer buying of lamps and lighting fixtures was moder¬
ately higher than that of a year ago. The call for major appliances

week's

$5,000,000 long-term debt; 196,519
shares of $4 convertible preferred

exceeded

year ago.

equalled that of last

management fee.ls that 1956 sales
could
approximate $150 million
and net about $5 per share.
The
capitalization consists of

and

retail

of

Wednesday of last week

on

aggressive research, (3) rec¬
of
continuous
profits
and
(4) diver¬
sification of products, (5)
rela¬
ord

dividends for 53 years,

tive

characteristics

defensive

in

environ¬

economic

favorable

less

ment, (6) currently selling at only
and, (7)

about nine times earnings
the

$2.40 dividend rate

affords

a

yield of 6.1%.

level.

apparel,
There

dollar

volume

moderately

the

exceeded

corresponding

the

Investment
especially
interested
in
women's
Spring
furniture and household linens and draperies.
considerable reordering
of : men's furnishings and
were

was

accessories.

Federal

on a

country-wide basis

as

taken from

ended

Dec.

1955, increased 11% above that of the like period of last

year.

the

Reserve

Board's

index

for

the

week

31,
In

increase of 22% (revised)
was reported.
For the four weeks ended Dec. 31, 1955, an increase
of 10% was recorded. For the period Jan. 1, 1955 to Dec. 31, 1955,
a gain of 7%
was registered above that of 1954.

preceding week, Dec. 24,* 1955,

an

Retail sales volume in New York City the past week dropped

substantially under the level of the corresponding period of last
year

due

to

the

loss

of

According
ment

Dec.
year.

to

store sales

in

the

shopping

one
run

Federal

New York

from

day.

Trade

CHICAGO, 111.—The Investment
Analysts Society of Chicago will
be guests at a special luncheon to
be

Peabodv Coal
Adams Room,
Hotel, on Jan. 18.
L.
Russell
Kelce, President of the
company, will address the mem¬
bers on the Peabody Coal Com¬
given

at

pany and its position in
tuminous coal industry.

was

recorded.

increase of 7%

was

observers

Reserve

Board's

index,

depart¬

Gilbert L. Bouley With

City fpr the weekly period ended

For the four weeks ending Dec, 31, 1955,
registered. For the period Jan. 1, 1955 to

1955, the index recorded
^corresponding period of 1954.

a

Investors Planning Corp.

rise of 2% from that of the

BOSTON, Mass. — Gilbert L.
Bouley has become associated with
Investors Planning Corporation of
New

large increases shown for this week reflect in part the fact that this
year
Christmas fell on Sunday and the week therefore included six days of
heavy pre-Christmas shopping as compared with five days last year when
Christmas

fell

on

Saturday.

England, Inc., 68 Devonshire

Street.

Mr.

Bouley

f

as

*The

the bi¬

13% to 14%.

1955, increased 10% above that of the like period last
In the preceding week, Dec. 24, *1955, an increase of 19%

'Dec. 31,

the
the

by

Company

Midland

31,

.(.revised)

Analysts of

Chicago to Be Guests

outdoor

Department store sales

an

domestic

has

company

seasonal

considerable

of recent
was

friction materials, the

on

oromising

sales

estimated the decline would

prices generally showed little change for the week.

steel

appliances, linens and women's sportswear.

Raw

Cocoa

cast

Seasonally Below Previous Week
Moderately Above Like Period of 1955

was

There

week,

women's

market.

(2)

still

are

overcome

share

Buyers

prices

of work

to

up

new

a

Trade Volume Decline

and force prices downward.

market

devaluation in Brazil had

23

add

is

wheel, the product of 14
of research. Following years

years

which

There

product, when perfected,
should have higher friction
quali¬
ties,
longer
wearing
life
and
smoother, quieter
stops.
Other
interesting items in the research

railroad

August Hubei

attributes

rye

loan on Nov. 15
Corn Worked irregularly lower with current prices not far
seasonal
lows.
Soybeans 'developed strength reflecting

government

weeks

velopments

ade¬

those of

Wheat displayed a fairly steady tone most of the
continued dry weather in the Southwest

above

ion,

the

280.48, compared with 280.47 a week
the corresponding date a year ago.

volume of trading fell

arid the

week

in

move

The Jan. 3

year.

crop.

opin¬

quately

chief

>

the

Shoe,

my

Sales

total of the

sum

function is to show the general trend of food prices at the whole¬
sale level.
i

over

being made in the field of metal¬
lurgy.
Among more recent de¬

in

moderately

$5.94.

of

American

a

registered

favorable position,

a

particularly relative to the strides

re¬

Jt represented

when

active research
through the years has

placed it in

(1) good current value and,
encouraging potentialities.

to stand at $5.95

year

week

a

13,

price

uses.

company's

agement.

these

Wholesale Food Price Index Registers New 5%-Year
Low in Week's Mild Decline

railroad

tantly into the automotive, farm
equipment, metallurgical, build¬
ing and construction fields and

Brake

and

the

of

cyclical

average
yield
f r o m a well

regions, however, failures dinned below
sharpest drop in the New England States.

the

more

.

rpan-

four

company

price

the

escapes

gressive

In

"wear-out"

largely

regions.
Failures exceeded last year's level in
the East
North Central, West North Central and West South Central States
and the toll was even with 1955 in two other

with

replacement

are

parts, and therefore the

program

ago,

products.

dustry posi¬
tion, a fair

pro¬

regions.

the

which

sound

year

annual

yield of

a

railroad

of

are

The

a

provides

.

and

tain

$2.40

present

shoe.

difficulties to

craft

comparative

i d

No

earnings

without
interruption since 1902.
Through a program of diversi¬
fication, research, and acquisition
only about 45% of sales are now

the

the

change appeared in the East South Central States, while
three regions had declines, notably the South Atlantic and Moun¬

5.

at

1955

Dividends, in varying amounts,

American Brake Shoe Co.

to

Five of the nine regions renorted. heavier failures

$39

have been paid each year

Manager Stock Department
Spencer Trask & Co., iNqw * ork City

of

Retailing and wholesaling accounted entirely for the week's
increase; the toll among retailers climbed to 110 from 71 and
among wholesalers
to 20 from 15.
On the other hand, manu¬
facturing failures fell to 38 from 50, construction to 21 from 27

.,

59-28),
only 8.5

6.1%..
AUGUST HUBER

of

19 last week.

the

around
range

selling

estimated

dividend rate

,

,

from

selling

content

are

brake

some

35

football

College.
pro

line

He is

All-Star

a

one

tackle

Angeles Rams.

has resigned

coach

of

Boston

time N. F. L.
for the Los

V
36

The Commercial and Financial Chronicle...

(192)

That, -in

essence,
is what our
Federal
Old
Age Benefits and
rapidly expanding corporate pen¬
sion plans really are."
The result, Mr. Roosevelt de¬

Two With Scherck Richter
(Special to The Financial Chronicle)

ST. LOUIS,

ris

and

with

associated

Richter

Company,

Midwest

Farris

Stock

the

of

with

Mr.

couraged

A. G,

Acceptance for Common Stocks
President of Investors

Management Co., principal speaker at

factors:

(2)

shareholders;

of insurance companies

mutual fund

"household"

most

acceptance

his

living

stock'

Americans

Securities &

they

cause

Established 1930

declared
for

of unprecedented
ownership.
The

be¬

stocks

sharing in the

con¬

tional

retirement

minimum
vided

in

for

needs

the form of

pro¬

Federal

Old

on

'safe'

pointed

tion' of dollars is

shares

Emlen

its
your

dealer or

Selected Investments Co.
135 S. La Salle St., Chicago 3,

"package"

own

If

the

of

III

W.

at

a

luncheon

common

stocks

ments than

were

1924 that

ward

ministering

the

stock invest¬

trend

to¬

investing in common stocks
individuals and institu¬

Long Presents "Along One Road"

Mr.

Hugh W. Long, President, Hugh
Long and Company, Inc., na¬

BOND, PREFERRED AND

Investors and
funds

three

man

at

of the luncheon

the

Jan.

New

11.

York

meeting, held
Club

said

million

that

more

Americans

recently become investors,
adding "the desire to invest has
been fed by the flame of inflation,
by the growth and expansion of
industry which people see almost
everywhere they turn — and by
the rising trend of stock prices

Investors
was Chair¬

Yacht

three

have

other mutual

supervised
by
Management Company,

Roosevelt

than

on

:

that

reflected

has

what

has

been

ten

Organization uid the shares of your

Funds.

Name

D 145
;

Address

possible for millions of Americans
to

A

feature

of

the

State..

common

stocks from

speculative"

in

to

well

sion

part

in

stocks.

is

the

income

ac¬

^balance

sheet,'

to

depreciation
and
depletion of human resources; and
charge

this

—in

Company.

sponding

the

for

'balance
reserves

sheet'—corro-

for this purpose.

pleased

to announce

A.

RICHARD

FUND, Inc.

designed to provide

that

BUCK

has become

a

partner

of

managed investment
variety of

companies participating
in activities

The Putnam Management Company
'
■

manager

a

is

added,

/jftmlc Develonment Securities Co., Inc.
1033 THIRTIETH STREET, N. W.
*

WASHINGTON 7, D. C




of

pace

stock

obvious,

almost

salesmen

"the

common

would look like the
snail." The reason, he

since "there
quarter of a million

a

in

the

indus¬

insurance

try—probably 10 times the num¬
ber
of
all
the
people in the
investment business to whom the

public

turns for ideas, advice

now

and counsel

investments."

on

the efforts of the Pru¬
dential Insurance Company to win
legislation

Jersey,

variable

of

acceptance

in

the

annuity
of New

State

Roosevelt said that
by' himself and his
they
considered to be "inadequate pro¬
visions for protection of the public
in
the
bills
as
proposed,
and
Mr.

opposition

associates resulted from what

other

211,054, equal to $4.63
the

2,422,809

stock

then

the
$11,-

Coleman

fiscal

W.

stated

the Fund showed
ized

of

on

capital

Morton,
that

ended

year

income

share

a

shares

outstanding.

President,

of

Fund

during the
30, 1955,

Nov.

net investment

a

$130,140 and net real¬

gain

sale of securities of

on

$1,046,880.

On

Dec.

21,

1955, the

Fund management declared a
spe¬
cial cash distribution of 45 cents

share, payable Jan. 26, 1956, to
shareholders of record Jan.
13.
The distribution- will be
paid from
a

net

realized security profits in¬
cluding undistributed long-term
capital gains realized during the

past fiscal year. -:.;.:

v

:

'

Fifty-six percent of the Fund's
portfolio on Nov. 30, 1955, con¬
sisted of common stocks, the re¬
maining assets being cash and
United States Government securi¬

weaknesses

in

the

He stated however,

ing the
"that

that assum¬
of suitable safe¬

presence

can
be no doubt
stocks will gain in

there

guards,

common

public acceptance if the insurance

its
hitherto
antagonistic attitude toward com¬
industry

mon

Since

of

age

that date the percent¬

common stocks has risen to

management gradually to

On Nov. 30, 1955, the five larg¬
common stock investments of

est

the Fund

investing."

Borax

Consoli¬

tion, Ltd.
In

his

which

letter

to

shareholders

accompanied

report,

Mr.

the

Morton

annual

stated

that:

"in

undertaking foreign invest¬
ment commitments, your manage¬
is

ment

well

of

aware

the

tradi¬

tional factors which have deterred
United

States

investors

from

entering the field. After considable study of these matters, we
believe

that
less

far

nomic

political
problems
important than eco¬

forces—and

limits."

;

.

the

latter

predictable

moreover

are

within

V

?

Commonwealth
Assets Show

20% Increase

Television Fund's
Total Assets

total

net

1955 to

Total assets of Television-Elec¬

$115,940,165, an in¬
of 59.5% from the $72,678,-

assets

527

a

value

asset

Dec. 31

reported for the 1954 yearaccording to Paul A. Just,
Executive Vice-President of Tele¬

for

end,

31

vision

and compares

assets

sponsors

and man¬

of

of

$8.44

share

on

gains distributions of
paid during the

share

a

this

year,

},

per

equivalent to $9.53
with net asset value
share at the end of

was

per

1954. Investment income dividends

were

1955

to

of

29

at
with

to

Commonwealth's

equivalent

outstanding

per

Cor¬

capital
cents

during

of Dec. 31,
with $89,409,-

$9.22. When adjusted

was

016

Management

Com¬

as

earlier.

year

Net

20%

rose

$107,084,687

1955. This compares

to

Shares

Investment

reported that the company's

pany,

tronics Fund, Inc. on Dec. 31 last
amounted

Coleman, President of

Commonwealth

Up
59.5% During 1955

end

in

were

dated, Ltd., Royal Dutch Petro¬
leum Company, Gulf-Oil Corpora¬
tion, United States Foil Company
"B," and Bowater Paper Corpora¬

reverses

stock

crease

increase

this percentage.

are

share

compared

cents

holders

share

per

during

Speaking

of

were

paid

43,000 share¬

1955.

the

business

out¬

earlier.
After giving effect to 51.22 cents
in capital gains distributions dur¬
ing 1955, the latest net asset figure
per share was 12.9% ahead of a

of informed forecasts favors addi¬

sp^f to the outlook for 1956 is

per

share

a

year

During 1955, the fund paid out

share in dividends

Mr. Just also reported

cember sales volume

of

The

Ceorge

PUTNAM
•

FUND

oj Boston

look, asserted that "the

tional

that De¬
$1,821,-

was

reinvestments, compared with $4,078,218 sales and $5,346 of divi¬

gains

Nonetheless,

pressed in several important

industries. Recognizing this situa¬
tion

its inflationary implica¬
tions, the Federal Reserve Banks
and

have

been

monetary

following
restraint.

there

1954. Sales for November and De¬

cerning

maintenance

levels of

automobile

first

two

months

of

are

some

totaled $7,288,026, including $3,858,836 of divid e n d
reinvestments,
compared

residential

with $10,566,111,

large

073

fiscal

year—

of dividend

including $2,058,reinvestments, in

the comparable 1954

period.

is generally

known that productive capacity is

dend reinvestments, in December,

the

consensus

in business activity.
optimism with re-

mildly restrained. It
hard

from investment income.

cember—the
GET THE FACTS AND FREE PROSPECTUS

lists

65% and it is the intention of the

that

in

488, including $27,852 in dividend

resulting

from Atomic Science.

Inc.

1955,

30,

growth

34.74 cents per

a

Fund,

Nov.

at

end of the last fiscal year, of

year ago.

are

ATOMIC DEVELOPMENT

in.

Resources

assets

Interna¬

declared

$10.62

Y7e

a

net

just

report,

shareholders,

velt

the

MUTUAim

is

the

to

tional

annual

past

$11.48

ii

Report '

first

ties.

The

ATOMICSCim

MUTUAL

under

its

annuity"
are
ultimately successful, Mr. Roose¬

poration which
ages the fund.

in

through

revi¬

'national

change by Investors Management

infest

This

our

include—in the 'income account'—
a

played

surplus savings in

and

of

count'

cepted investments today, and the

significant

their

invest

common

ac¬

stocks

In

mailed

S. Waldo

another element that is making it

"naughty and

1924

Annual

in our economy."

on

He continued: "But there is still

Management Company,
"Along One Road," a book re¬
counting the change in status of

-

—..........

City

going

of

your

prospectuses describing

me

meeting was
the presentation by Mr. Long to
George E. Roosevelt, Chairman,
Investors

Please send

insur¬

concept."

Flame of Inflation

By

certain

"variable

certain
Feci

of

Citing

tions."

common

COMMON STOCK FUNDS

Keystone Company

in¬

ments.

W.

The

and

both

by

tional underwriter of Fundamental

SO Congress Street, Boston 9, Mass.

accelerate

"further

bonds, and the found¬

i.

Custodian Funds

permit trustees

antipathy toward common stocks
will,
in
Mr.
Roosevelt's
view,

better invest¬

ing of his Company in that same
year for the sole purpose of ad¬

Keystone

sec¬

Finally, the fact that insurance
companies are on the verge of
reversing
their
long
standing

commemo¬

rating the discovery in

his

stitutions to invest in stocks.

Investors

ments

rising "costs

on

living" for institutions, the fact
common
stocks give better
yields than bonds and that state
laws have been changed in recent

Roosevelt, President
Management Com¬
pany, IncM forecast these develop¬
of

was

are

that

Emlen

longer enough;

considered.

participation in
ing of common

speed of

to

preserva¬

companies to obtain authori¬
sale to the public of a
a diversified hold¬

ance

ownership

years

He

zation for

label

of

common

mere

no

efforts

institutional investors

stocks for investor participation in
America's economic growth.

investments,

Opposes Variable Annuity Bills

ond reason—based

is just now undertaking to create

what had been

trusteeship."

assets has to be

Continuing increases in the
ownership of common stocks by

Hugh W. Long

dividuals and institutions, and by
the life insurance industry, which

INC.
Prospectus from

Roosevelt

institu¬

that the purchasing power of trust

nation's human resources."

W.

of
that

out

depreciation and depletion of the

american

as

sponsibilities

Age Benefits and corporate
pension plans which Mr. Roosevelt
described as "reserves set up for

Selected

which

have virtually forced institutional
investors to re-examine the re¬

tinuing redistribution of our na¬
wealth, and have
their

jt20 Broodwoy, New York 5, New York j

fo

than

less

thought of

of

accounted

common

are

able

being encouraged

are

in

invest

to

Corporation

re¬

people—have
been afflicted, plus much reduced

is that additional millions of

first

better

are

with

costs

tions—no

Resources

prediction

common

they

en¬

investing

Roosevelt expressed the view
"the
combination of rising

that

Depreciation

factors

three

that

stock

rates of return

Roosevelt

Emlen

Mr.

"?-i

pr

for

Human

as

or:

National

Mr.

stocks.

common

Reserves

long-term investments as the re¬
sult of increasing demand by in-

possibilities. Prospectus and
other information may be ob¬
tained from your investment

Research

following

increasing institutional

toward

Common stocks will achieve al¬

stocks selected for their income

dealer

become

quite
logically,
them to seek the

common

because

assur¬

the accompanying risks."
explaining the trend by in¬
stitutional investors to buy stocks,

buying of equities, and (3) reversal of long-standing apathy

Stock Series

|

on

wards of

years,

Funds Issues First

their

In

(1) encouragement and ability of millions of Ameri¬

to

cans

National Preferred

stock ownership

during
and this

Int'l Resources

some

assume

by Hugh W. Long, bases fore¬

of unprecedented common

cast

Investing for Income?

providing a
supervised investment in a di¬
versified group of preferred

has,

ance

of

assurance

income

retirement

Roosevelt Forecasts Household

luncheon meeting, Chairmanned

a

have

minimum

Edwards & Sons.

is

today

By ROBERT R. RICH

North

Exchange.

formerly

was

clared, is that "millions of people

Scherck,

320

members

Street,

have

Mayfield

F.

become

Fourth

Mutual'Funds

Mo.—James T. Far-

Harry

Thursday, January 12, 1956

tive

side

the

plans

for

Such

policy of
Then,
too,

a

uncertainties

of

con¬

recent

demand

and

building. On the posi¬

attention

made

increases
new
plant

is

directed

to

by business for
in
expenditures

and
equipment.
spending always has been a

\

Volume 183

Number 5498

of strong

factor

industrial

all

"Other

support to

1956.

These

local

over¬

of

the

economy

implications

larger state and
for roads, schools,
and other public works, increased
are

incomes

consumer

and

expendi¬

tures, and continuation of the up¬
trend in* construction other than
residential.

As

the

prospects

for

the various segments of the econ¬
omy

balanced

are

that

appears

business
able

yet

Over-the-Counter

for

outlays

and totaled,

improvement

it
in

activity will be appreci¬
more
moderate
than

1955."

(193)

Over-Counter Sees. Fund

production.

areas

favorable

carry

The Commercial and Financial Chronicle

...

By concentrating investments in
the Over-the-Counter market, the
Fund's managers will be moving

tinction—it is the first investment

which will

trust
in

industrial

invest

and

into

Counter

public

unlisted

or

utility

"

Canada

General

Fund

(1954)

Limited, largest Canadian invest¬
ment

company
owned predomi¬
nantly by United States investors,
reports net assets of $63,158,558

market

In

expressing the reason for the
Fund, Ralph P. Coleman, Jr.,
President, stated: "The vast Over-

valuation of

over

listed

stocks

bank

$6 billion.
have

Un¬

an

ap¬

the-Counter market, composed as

proximate

it is of many of the most progres¬
sive and best-known companies in

$10 billion and unlisted insurance

vestment.

the

With

stocks

companies

few

a

of

"The

portfolios of

a

We believe this

the

fund

mutual

is

of

current

of

un¬

this

is

•

held

by. investment

trusts,"

"It is

spokesman noted.

a

our

belief, supported by intensive re¬
search,
that
the
mutual
fund

pre¬

pared to invest in such situations."

approach

Incorporated in Delaware, Over-. applied

be

can

successfully

as

Over-the-Counter

to

have

much,

as

Much

gain

is ;in natural gas,
supplies 44% of revenues
55%

for

electricity.
had
natural

has

company

had

small percentage of which

of

"rapid

has received wide publicity in the press during the past

program,

This

year.

project

originally

as

Glen

of

since

service

a

the

Revenues

nearly three times

versus

cateegories

Company
of

one

presented called for the constfue-

total

valuation

is

increased from $25 million in 1946
to about $73 million currently—

than $8 billion.

more

four

over

Service

growth" utilities.

which

combined

these

Fund

con¬

advantage

that

Public Service Co. of Colorado

lion,

majority of invest-

dition will work to the

By OWEN ELY

listed securities is almost $40 bil¬

Over-the-Counter

.ment, .trusts.
of

of

exceptions,

value

estimated

an

valuation of

not included in the

are

market

securities

untapped

many

Utility Securities

valua¬

Public
billion, while unlisted public util¬
ity firms have an estimated market Colorado

market.

opportunites for mutual fund in¬

Reports Asset Rise

Current

tion of unlisted industrial compa¬
nies is estimated at more than $15

new

nation, offers

Public

financial field of broad pro¬

a

portions.

primarily

securities traded in the Over-the-

the

Canada Gen'l Fund

Organized

Securities

Inc., the nation's newest
fund, has an added dis¬

Fund,
mutual

37

to

1928

place

residential

sales.

has

and

It

Canyon plant to develop
800,000 kw installed capacity. For
economic

however,

reasons,

it
the

The

seems

probable that

gas

power

generated at Glen Canyon

never

limitation

any

tion of two major dams, withAhe

on

operates

en-

will

of

none

to the east, but will be
disposed of in Utah, Arizona and
move

California.

tirely .within the State of Colorado, and furnishes approximately

Practically all of. Public Service's natural gas requirements are

68%

supplied

the

of the electricity and 72%
natural

Public Service

se¬

its

of

used in the state.

gas

of Colorado

and

subsidiaries

by Colorado < Interstate
Company through three pipelines.
Two of these originate in
the Texas Panhandle Field, one
also
connecting with the OklaGas

supply electricity
an authorized capitalization of one
population of around
listed
securities
for
so
many
850,000 in an extensive area cen- homa
million shares. It is headquartered years."
Panhandle,
Keyes
and
fiscal year. Net asset value per
The principal Greenwood Fields. The third line
in Oreland, Pe nnsylvania, a suburb
Over-the-Counter
Securities tering on Denver.
share was $11.23, which compares
of Philadelphia. Review Manage¬ Fund, Inc. was organized by prin¬ activities in the area include agri- is from the Hugoton Field in Kanwith $11.64 three months earlier
livestock and mining, sas,' The proven reserves availment Corp., a registered broker- cipals of "Over-the-Counter Se¬ culture,
and $9.62 on Nov. 30 of the pre¬
dealer, will serve as investment curities Review," the only finan¬ Widely diversified industries are able to Colorado Interstate as of
vious year. There were 5,622,243
including oil refineries, Aug. 31, 1955, were estimated at
adviser to the Fund and general cial magazine devoted to unlisted served,
shares outstanding at the end of
flour
mills,
creameries, meat nearly 28 times the company's
distributor of its shares. Although securities.
Numbered
among
its
the latest quarter against 5,503,176
packing plants, canning factories, 1955 deliveries. About 95% of all
no general offering of shares will
directors
and
advisory
board
shares a year before when net as¬
etc.
The largest manufacturer of houses
in
Denver
use
gas
for
be made until the Fund is fully members are the heads of invest¬
sets were $52,921,945.
luggage in the world and the house heating, and gas rates are
ment
firms
located
r
throughout
In the current report, Henry T. qualified with the Securities and
six en largest manufacturer of rub- about 15%
under costs of com¬
Exchange Commission
and
the the country; the President of a
Vance, President observes that:
ber goods are in Colorado.
petitive fuels, despite cheap coaL
various State regulatory bodies, it leading electronics computer man¬
The state is primarily agrarian,
"The
income
for
the
latest
At the end of 1945 Public Servis
planned
to
sell the Fund's ufacturer, the President of a lead¬
with farming and cattle ranching ice's
quarter
(adjusted
by the
net
capitalization
ratios
were:
shares, after an initial private ing technical society, the President
the traditional backbone of our Debt 65%, Preferred Stock
amount representing accrued in¬
9%,
offering, through investment deal¬ of a foremost plastics company, a
come
included in the price of
economy.
Wheat,
sugar
beets, and Common equity 26%. As of;
ers, particularly those active in mechanical engineer and a chem¬
shares
sold
and ; re deemed)
potatoes
and
other
vegetables, Dec. 31, 1955, the ratios had imOver-the-Counter securities.
ical engineer.
amounted to approximately seven
hay, peaches and apples are a few proved to: Debt 45%, Preferred
of the principal crops, and herds Stock 17%
cents a share. The Fund accumu¬
and Common equity
of cattle and sheep roam the graz- 38%.
lates and reinvests net earnings.
To
meet
the
company's
at low tax cost."
ing lands. It also ranks first in planned construction program of
the production of uranium, $110,000,000 for the years
Under the heading: "Emphasis
1956-59,
Several elections reflecting
a
recently-launched expansion
on
molybdenum, vanadium and ra- inclusive, present indications are
Investment-Quality
Stocks,"
program for Delaware Distributors, Inc. — sponsors of the $37
dium and second in gold producthe report notes that of the total
that
$46,000,000 will
be raised
million Delaware Fund—were announced January 10 by W. Linton
tion.
More than 30 metals
are
market value of its all-stock port¬
through the sale of securities, the
Nelson, Chairman of the Board.
found within the State's borders,
folio last Nov. 30:
balance
coming from internal
including substantial deposits of sources. The company now has no
"Close to one-half was

Nov. 30, 1955, the close of the
first quarter of the Fund's present

the-Counter

Securities

Fund

curities

has

it

as

has

been

applied to

on

and gas to a

,

Delaware Fund's New

Appointments

repre¬

sented

by

stocks

of

silver, lead, zinc and iron.

companies

industrial minerals

which have paid consecutive cash

dividends
for

20

on

their

years

one-quarter

the

of

holdings at
paid cash divi¬

over

the last

and 10% have

10 to 20

coal

stocks

with

investments

in

are

firmly-established

in

in

dividend

serves

certain

relatively

dustries, such
has

not

yet

as

been

in¬

new

Canadian stock to establish

a

long

of

earning power and
To some ex¬
tent, similar situations exist in the
record

dividend

payments.

Lewis

industries. As noted in the recent

occupies.

Annual Report,

since

will

sues

for 'blue

a

however, it is be¬

number

such

of

qualify, in due
chip' ranking."

tary

1954

Wilkins, Vice-President of

Wellington Fund, in reporting the
most successful year

history, stated that

fund's

in the
gross

P.

the

of

sales of

he

Mr.

the

largest

year

1955

record,

on

were

topping

sales for 1954 by $8,550,000.

gross

These

figures do not include the

reinvestment of dividend distribu¬

elected

year-end reached

record

a

The

delphia,

still

business

investment
1932.

according to Mr. Nelson's
came to the Executive staff of

company,

in

1953

from

Secretary of

announcement

also

a

law

firm

in

this

city.

In

Delaware

names

Ohio

and

West

Virginia

wholesale manager since first

William

Wilson

Hewitt

a

where

he

has

active

been

as

joining Delaware in January, 1955.

been associated with the investment business for

number of years and has held

partnerships in several securities
fund industry as a sales
executive and concentrated on both wholesaling and
retailing
phases. During World War II he served as a captain in the

a

firms.

In

1953

he

entered

the

United States Marine Corps.

active duty

mutual

of

In 1950 he

was

recalled to two years'

Major and officer in

Wilkins
of

his capacity

director

and

of

Charles T. Dudichum
Mr.

also

reported

Wellington

that

Fund

Nelson

sion program,

said

that Frank T. Betz, Jr. would
Vice-President in wholesale distribu¬

as

for

sales
as

the

Delaware

Distributors,

shareholders at the year-end was

of

and

in

history,

totaling

the

Fund

are

now

recent

160,500 compared with 138,200 at

owned

the close of 1954.

in several




*

he explained,
in
in

the

and

the

mark

first

was

of

The

in

expan¬

prompted by the increased sales

years

$37

steps

have

million.

more

The

forest

land,

which

are

million

About

1955 expenditures
greater. The
in
farming
and

State, and
probably

were

favorable
a

are

ex-

exceed $2.70.

ago

year

Commission

to

in

are genColorado,

the constitution
give

the

State

authority

over all
utilities. The first important-case
was

.

review

a

rates.
.

The
.

of

the

Company's

Commission
,

,

used

net

workin£, raDital

ranching, mining, light manufac-

original cosy p us forking capital
ar*d permitted a 6% return for;

turing and tourist business has resulted in a degree of economic

pany

diversification

stability

rf

in most

found

not

tions of the

railroads, 17 impor-

tant truck lines and three passen-

other

lines

bus

ger

than

those

connected with railroads. Another

growth of this region

factor in the

is

has

that Denver

offices

ment

and

years

agencies

than

one

than

more

doubled.

years

commercial
is

struction

extensive

and

taking

signs

new

industrial

and

place

point

area.

All

tinued

to

con¬

in

the

rapid growth.

Public

a

con¬

Service's generating

ca¬

increased 190% in ten
to 587,000 kw. in 1955, and

pability

the company in
will add

tion

an

or

the next four

years

have under construc¬

additional

in

244,000

kw of

1959.
The

Project,

Colorado

proposed

River
as

a

Service of Colorado hes

arou"d

and paying $1.80

to yield

4%.;

Share earnings for the 12 months
Sept. 30,

were

$2.55, making the

price-earnings ratio

17.8.

ifhe^mGriGanRedldross

Home

building in 1955 eclipsed all previous

Com-

...

bee" selhnS

Washington, D. C.
has

(the

govern¬

location outside
In the last 15
the metropolitan population

other

any

more

gas

had asked for 6%%).

PuWic
,

Denver is served by five major

air lines, six

both electric and

sec-

country.

scheduled for 1957 and the second

presently

or

....

amended

was

even

quintupled

is

normal

Regulatory conditions

15

a

by weather

1956, earnings

.

eral'ly

big industry. In 1954, more than 3,800,000 tourists spent $298 million in
the

weather in

million

commercial

,,

,

Assuming

pecte(j to equal

20

capacity. The first 100,000 kw unit
at the new Cherokee Station
is

by 11,500 shareholders located in all of the 48 states and

foreign countries.

has

state

.

.

moderately

re-

Assets

138%.

than

Fund

conditions.

amount to over 319 million

The

.

and

estimated

and

stock prior

business having been

gas

'

;

favored

the

The tourist business is

years

elections

In 1955, gross sales rose

past five

excess

Inc.;

Treasurer.

of Delaware Fund share?.

the

highest

a

line with plans to expand Delaware Distributors, Inc.

23%.

number

as

The announcement also stated

continue in

740,000 at Dec. 31, 1954, for an in¬

Mr.

he

Vice-President in wholesale distribution charged with supervising
sales of the Fund's shares in all of Pennsylvania except Phila¬

tion

$496,567,000 compared with $401,-

the

which

Fund, a post which
he still holds. A member of the Philadelphia Bar Association, he
served as a Naval officer during World War IT in the South and
Central Pacific. Mr. Schellenger is a graduate of the University
of Pennsylvania's Wharton and Law Schools.

Total assets of Wellington Fund

crease

office

an

$2.65, the

and

in

of

acres

charge of all Marine Air
Control Training for U. S. Marine officers at Cherry Point, N. C.

tions.

at the

Hewitt

elected Vice-President and Secre¬

was

Schellenger

Distributors

was

Mr. Hewitt has

$72,350,000 for the

Fund,

identified with the

Schellenger
distributing

announcement.

Wellington Fund
Reports Record Yr.

Wm. Wilson

with the mutual fund field since

1920 and

James

the

of

has bepn

He

Delaware

A. J.

Treasurer

became

is¬

course,

Schellenger

Secretary of the distributing company
to become Vice-President. Mr. Ross joined the Delaware organi¬
zation in 1950 as Assistant Secretary of the Fund, and two years
later was elected Secretary of Delaware Distributors.
In 1954
he

that

P.

Lewis J. Ross resigns as

rapidly-expanding oil and mining

lieved

Jas.

Koss

J.

which

production

of

acres

pipelines, there
time for any

billion tons of

a

Colorado,

bituminous

common

1960.

it is expected that share earnings for 1955 will be in excess of

The State ranks ninth
oil

States

barrels.

"In

to

gilsonite,

sub-bituminous

crude

United

records.

in

in

first

anthracite.

of the

Fund's

over

are

reserves

third

paid cash dividends

for 5 to 10 years. Thus, 80%

plans to issue

feldspar and dolomite.

ranks

years

including

quantity,

gypsum,
There

Another

more.

market value have
dends

in

shares

common

or

Many

also found

are

Storage

Federal

[g

38

The Commercial and Financial Chronicle

(194)

jrom

optimistic about the business out¬

12

page

The Ciedit Restraint
and

VA

minimum

raised

both

paymenf requirements

down

by
percentage points and short¬

two

ened
30

maturity from

maximum

Housing
Administrator Cole explained that
the purpose was to ease up on the
accelerator, not push down on the
brake; that the action was de¬
signed to forestall a credit ex¬
pansion which would bring higher
home prices and lower the value
of the dollar by increasing
the
cost of living generally.
On

25

to

years

years.

of

first

the

the

August

^Treasury
executed another
re¬
funding operation. Holders of $8.5
million
of
1% % certificates of
indebtedness

2%

a

anticipation certificate

tax

scheduled

to

mature

June

on

22,

additional amount of

1956, or

an

the

notes

2%

either

offered

were

maturing

Aug.

on

15, 1956.
The attrition on this
exchange amounted to only $150
million.
In

the

ber

early

and

Federal

boosted

Reserve

discount

the

Septem¬
Banks

in

rate

steps from 1%% to 2!/4%.

two

At the

time, members of the Fed¬

same

eral Reserve Board met with del¬

the

mounting

of instal¬
The mortgage

market

in

came

for

attention

on

Sept. 13 when Walter W. Mc¬
Allister, Chairman of the Federal
Home Loan Bank Board, advised
institutions to meet loan

member
demands

and

loan

mercial

The
also

were

2j/2%

in

on

This

November.

highest discount rate
decades. The short-term

two

rate continued to climb.

reached
Dec.

dated

repre¬

the

sented

was

com¬

put

difficult to obtain by an
in the discount rate to

more

increase

in

repayment.

banks

capital

savings

that accommodation would

notice
be

of

out

The peak

when Treasury

8

sold

bills

at

2.471,
the highest level since 1933.
On Nov. 25 the Treasury made
plans

public

refinance some
of maturing

to

billion

$12.2

were

worth

securities through exchanges into
short-term issues.
Holders of a

VA% certificate and a
five-year 1%% note were offered
one-year

a

choice between

tificate

of

a

2%% interest and
half

one-year

indebtedness

one-

Treasury note paying
interest.
With short-term

year

2%%
rates

rising
somewhat
in
the
meantime, holders of about $850
million

securities

of

instead of the

the

new

Treasury

increase

its

rowings to

took

cash

issues.

was

Hence,
compelled to

December

cash

bor¬

total of $1.5 billion.

a

To raise this

amount, another tax
anticipation bill was offered last
week.

Nevertheless
the

loosening in
occurred in

some

regulations

has

the last few weeks.

In November

the Federal

Housing Administra¬
tion removed restrictions imposed
last July on three minor credit
areas.

These involve

servicemen

housing for

active duty,

hous¬
ing for urban renewal or slum
clearance areas, and housing for
on

displaced by urban re¬
building. In a speech be¬

persons
newal

fore the annual convention of the

desirable

S.

in

October, Chairman

Savings and

Loan

League

McAllister

indicated that the credit restraints

imposed by the Home Loan Banks
would be less stringent than an¬

ticipated.
The
policy

of credit restraint
being followed by the govern¬
ment has the enthusiastic support
of the

life insurance business—as

it should of all who are interested

in the broad public welfare.
is true
the

This
only of the efforts of

not

Federal

Reserve

System

and

the Treasury to restrict the

infla¬
tionary expansion of credit, but it
also applies to the coordinated
measures

by

the

Housing




and

thinking

on

the

which

are

part

a

in

in

dollar.

value

will

The

of

favorable

basic

two

planned

manufacturing
dicates
The

deal

great

a

nancing

policyholders,

thief which robs

have

authorities

have

Enormous demands

strained

,

productive

of

limits

the

output

and

resources

our

has been

pushed to capacity in the
majority of industries. Industrial

production

heights,
been

has

and

risen

record

to

unemployment

reduced

levels.

bare

to

Hardly

has

minimum

slack is left.
long-term capital
funds is far outrunning the sup¬
ply of savings. Although the gen¬
eral price level and the cost of
living
have
shown
remarkable
stability in the face of heavy pres¬
any

The demand for

sures

on

the

resources,

prices of

most

manufactured goods, indus¬

trial

raw

have

materials

and

services

been

edging upward. This
especially true of build¬
materials prices.
Contribut¬

has been

ing
ing

to

this

business

exuberance

and upward pressure on prices has

been, of course, the
pansion of credit.
The

credit

enormous ex¬

authorities,

particularly the Federal Reserve,
deserve great praise for the reso¬
lute and courageous manner in

which they have pursued
of credit restraint in the

mounting
easier

credit.

greater

policy

a

in

the

the

credit

has

the

been

residential

authorities

act

"grinding halt" in
spring of 1956. This is a gross
exaggeration of likely develop¬
ments.
Actually, the supply of
mortgage funds to finance home
construction is still abundant.

It

is

simply available on somewhat
stricter terms, and will thus dis¬
speculative building,

situation.

ness

but

current busi¬

There

be

may

moderate decline in housing

starts

next year, but the current
volume of mortgage loan commit¬
ments and the flow of
mortgage

funds

should

make

healthy addition
000

units

to

possible,

a

of around 1,200,-

our

housing

supply

next

year.
Action taken to re¬
strain the expansion of residential

mortgage

credit

has

been

wise,

and it is to be.

hoped that the

thorities

continue

will

pressures
area

to

until

ease

such

to

credit

action

in

is

au¬

resist
this

clearly

justified.

at

price of $30

a

basis

of

five

one

shares

the

offering

addition

and

generally

share

of

special

of

result

the

to

of
to

in

the

company.

of

the

vote

increase

stock

shares

new

meeting

stockholders

pro¬

capital

will

A

bank's

the

on

in

offering

March.

each

$92,000 to the capital
and $460,000 to the sur¬

account

posed

the

on

for

Completion

would

be

and

held

in

Net

operating earnings of
the bank for the year ended Dec.
31, 1955, after provision for in¬

taxes, amounted to $4,33

come

per

share

on
the 92,000 shares of $5
value capital stock outstand¬

par

ing, which compared
operating earnings of
share

shares
1954

the

on

figures

solidated

end

of

based

are

with

earnings

net

$3.49

per

number

same

the

at

1954.

The

the

on

of

of

the

at

more

with

of

time.

tion

of

is realistic

if

and

more

Trust

Barron

P.

Vice-Presi¬

a

moving

Officer,

Cashier

elected

1936,

authori¬

of

National

the

suggests firm

was

director of that bank in

a

became
its
Cashier
two
later, and was made Vice-

years

President and Cashier in Novem¬

not

increasing interest rates
during the forthcoming year.

ber,
as

1939.

Mr.

certified

a

Sellors

public

qualified

accountant

1949.
CENTRAL

con¬

*

of

the

The

*

Advisory

Committee

Citizens Office of The

delphia

National

has

Bank

announced.

been

Mr.

connected

Corporation

of

Phila¬

Phila-

of

from

Hillsdale

Gavin

with

since

the

his

has

Dana

graduation

College

in

1938.

Mr. Storb heads the Storb Travel
Service at 365 High Street, which
he

founded

in

1951.

:j:

it

National Bank of Norris-

gomery

town

as

Teller and in

a

appointed Cashier. He

^

*

NATIONAL

BANK

Dec. 31/55
Tctal

OF

Vice-President in

tional

Bank

The

of

phia

National

Mr.

Zimmerman

Zimmerman

retired

in

charge

bridge
of

and

The

the

of

Montgomery

of

Faith

claims

office.

Both

in

charge of that

than

more

began

on

years

1,

1904,

when he

joined Cambridge Trust
Company. Later—through merger
it

—

became

Chester-Cam¬

the

bridge Bank and Trust Company,
and

Mr.

Faith

Chester

"the
with
he

The

to

rose

of that institution.

In

bank

President

1954, when

was

Philadelphia

merged

National,

appointed Vice-President
and
head
of
Philadelphia
Na¬
tional's
new
Chester-Cambridge
was

Mr. Faith is

Office.

a

a

former member of the Pennsyl¬
State

Banking

First

National

hocken.

Board.

embarked

career

in

1901

Bank

will

men

continue

Philadelphia

serve

of

members

as

visory

the

Committees

of

184,041,391

3,277,043

3,085,526

profits—

SOCIETY FOR

bank's

in

Vice

-

in

President

Chester

Ad¬

their

charge

National

delphia

of

due

holdings
Loans

and

Hatboro,

on

with

Mr.
his

the

Consho-

In 1907, he joined Mont¬

$

345,291,517

23,165,216

from

discounts

*

if

•

.

FIFTH

in

62,683,328

153,886,615
:

it

it

\

THIRD

•'

UNION

COMPANY, CINCINNATI,

TRUST

OHIO

Dec. 31/55

Total

resources—

Deposits

U.

due

from

—

—

Govt,

S.

101,264,828

security

holdings
Loans

$

375,836,533 352,327,346
244,623,587 321,717,961

—

and

June 30/55

$

76,596,688
:

,

100,149,896 121,633,202
discounts

145,103,512

124.000,308

profits—

&

3,558.497

3,346,304

Undivided

The

Pa.

•

114,186,194 123,423,155

—

&

THE

banks

Phila¬

delphia, Pa. have been opened
Pottstown

June 30/55

374,269,922

346,165,981

—„

and

U. S. Govt, security

'•

Bank

OF

375,239,674

banks

Cash

H*

offices of The Phila¬

new

CITY

28,725,816

Deposits

of

Vice-President.
V

THE

$

K.

Assistant

IN

Dec. 31/55

re¬

Office, and
Byrd, Jr., will head
the Montgomery Office
of The
Philadelphia
National Bank as

Two

SAVINGS

resources—

Cambridge

-

William

*

CLEVELAND, OHIO

National

spective communities. George H.
Renninger succeeds Mr. Faith as

if

it

establishment of offices in the two

CONTINENTAL ILLINOIS NATIONAL BANK

communities results from mergers

AND

TRUST COMPANY OF CHICAGO, ILL.

of The Philadelphia National with

Citizens

The

Pcttstown
Bank. In

Bank

National

Hatboro

The

as

Citizens

Dec. 31/55

Office

Total

The

served
town

Philadelphia

Frederick

Bank.

G.

National

Erb, who has

President

as

of

the

Deposits
Cash

2,473,593,376 2,269,410,553

and

Potts¬

bank, has been elected Viceinstitu¬

U.

S.

due

banks—
Govt,

Loans

will

and

that

office.

continue

Clinton

head

executive

His

to

discts.

&

Unaivid.

President; F. H. Peterman, As¬
Cashier; and Willard M.
Bickel, Assistant Trust Officer.
the

Hatboro.

Kepler

merged

elected

been

has

1,010,823,075

749,522,807

26,405,158

19,047,703

profits
-J-

NATIONAL

■

it

'

BANK

banks

in

President

charge

OF

shareholders of the Pottstown and
Nov. 22 to make

on

available

directly

munities

the

Philadelphia

larged bank
to

its nine

—other

to

their

resources

National.
now

$

1,970,812,117

1,880,286,872

1,793,335,207

501,639,555

423,766,075

hold'gs

752,785,314

,803,972,713

discts.

619,825,667

582,069,446

profits

14,861,633

19,896,881

Deposits
Cash

U.

———

due

and

Govt,

S.

curity
Loans

,

banks—

from

&

Undivid.

THE

se¬

of

The

Hooper
the

DETROIT

Total

Deposits—
Cash

The
en¬

has—in addition

and

banks

announced

company's

MICH.

Dec. 31,54
s

829,318,740

773,777,164

792,754,813

735,431,363

168,446,331

143,683,408

U. S. Govt, security

holdings
Loans

&

Undivided

320,679,677 338,741,884
discounts 260.752,290

profits—

BANK

OF

10,619,331
*

it

THE

104,869,455

7,497,279

*

COMMONWEALTH

DETROIT, MICH.
it

Dec. 31/55

Miles, Chairman of
of the Fidelity-Balti¬

of

DETROIT,

from

—_

in

*

National

Company,

Sellors,

—

due

S

S.

Board,

more

BANK,

resources—

Norristown.
it

*

$

Chester, Conshohocken, Lansdale, Marcus Hook

and

it

Dec. 31/55

com¬

offices in Philadelphia

offices

Sept. 30/55

2,014,708,521

resources-

Alan

becomes
Assistant
The openings con¬
the plans approved by

Hatboro banks

MICH.

$

Total

there.

summate

'

v-

DETROIT,

Vice-

and

Resendorph
Cashier

'i*

Dec. 31/55

G.

Bickel, \vho
Assistant Vice-

557,095,701

862,980,808 1,010,789,881

staff

sistant

In

651,653,605

se¬

hold'gs

curity

President of the enlarged

tion

$

resources.!) 2,739,066,835 2,520,016,539

frcm

of

June 30/55

$

of

Pottstown, the office will

known

be

National

and

Past Chair¬

of

Group II, Pennsylvania
Bankers Association.
He is also

man

discounts 228,672.569

••t

career

50

Sept.

&

it

Cash

to

Philadelphia National. Irvin T.

Mr.

loans

Undivided

elected

become the Hatboro Office of The

Pa.

166,272,212 191,658,847

merger,

was

Offices

banking

a

Mont¬

National

Philadelphia,

spanning
which

respectively

127,362,759 109,732,455

—

holdings

Philadel¬

through

Vice-President

Chester-Cam¬

Philadelphia

Bank

Dec.

on

'banks.

U. S. Govt, security

Total

includes

Douglas R. Faith and W. Fred¬

three

the

became

Office

gomery

:ji

30 as Vice-Presidents

and

510.991,988

468,702,841

from

''

elected

was

1927

was

due

later became President. In
1954, when the Montgomery Na¬

has been appointed
eric

1919

543.922.893

——

and

June 30/55

500,277,633

resources

Cash

years

Bryn
and The

Morris R. Gavin and Jonn W.
Storb have been elected members

banking

professional
are

and

month

elected

Marine Bank of Baltimore. He

pointing in the direc¬
increased
activity, the

attitude of the monetary

the

was

from Assistant Vice-President

sistant

business

conditions

ties

J.

Sellors, the
retiring Vice-President, started his
banking career in 1931, as an As¬

con¬

than

present

indices

many

The

Mawr Trust Company
Bryn Mawr National Bank, which
was merged into The
Bryn Mawr
Trust Company as of Dec.
31, 1954.

Zimmerman

Businessmen

is

inflation

As-,

an

William

and Trust Officer. Mr.

*

of

account

plus

share

per

new

held.

stockholders

vania

Investment Outlook

economists

With

Board

with

deflation

Commit¬

News About Banks and Bankers

a

healthy in the

Reserve

cerned

in

Lambert

doubt that the Fed¬

no

15

page

tors, Frederic A. Potts, President,

the

this is

from

delphia^ Pa., by the bank's direc¬

to restore easy credit in the hous¬

courage

eral

Currency

and

tee leaves

elected
ar.d

CLEVELAND, OHIO

ing field, residential construction
will come to

school

require the sale

to

construction and mortgage lending
field.
On all sides we hear that
unless

The fi¬

of

relaxation

than

will

face

Nowhere

for

pressure

there

revert

to

pressures

up

now,

will

❖

control

Earlier

of

Deposits

been concerned the past
about
excessive
economic

"exuberance."

the

us.

rightly
year

fill

testimony

been

Gerbig,
formerly
Assistant
Cashier, has been made Auditor..

dent

highways and

Continued

the in¬

savings of all of

Government

to

Cashier

*

pen¬

savings bank depositors,
holders of savings and loan shares
and savers in general. Inflation is
and

funds

recent

an

office, Richard A.

has

Banking

which in¬

The

made

connected with

office.

head

Barnes

Chairman Martin before the House

large increase in out¬

of

supply

the

been

are

sistant

in

sioners,

subtle

most previous years since the end
of the war, the outlook for inter¬
est rates depends upon the
ability
of the commercial banking sys¬

to

Marine

At

of

for

likely

construction

mean

the

savings again during 1956. As in

millions of

the

to

life insurance

capital funds will exceed the flow
of

has

going officers

for

investments

standing mortgage debt.

power

efforts

demand

gap.

concerns

demand

the

of

capital funds
will be heavy in 1956. If housing
starts approximate 1,200,000 units,

further

a

purchasing

Undoubtedly

survey

increase of 30% to $12.1
billion this year.

another

These

the

an

be

preventing

Hill

-

capital

is being paid by government to
heading off a resurgence of in¬
the

in

Vice-President; S. Eugene

Whittington

tem

McGraw

how much attention

in

industries

for

sistant

Assistant Cashier. All of the fore¬

the

seems

of the dollar.

Iconsultant;
C.
Milton
formerly
Assistant
Vice-President, has been named
a
Vice-President;
Clarence
S.
Sauerwein,
formerly
Assistant
Cashier, has been elected an As¬

with

even

tax

Lancaster,

money.

been

outlook

that

suggests

1, to engage in private
a
public accountant

as

market for substantial amounts of

American economy is reflected in

as

see

has

probably approxi¬
housing starts in

1,200,000

these

It has therefore been most

flation—to

mar¬

sustaining forces
since the end of

economy

war.

1956.

encouraging to the life insurance
business to

car

automobiles

mate

the

of

the

the

It is therefore

the

of

of the major

one

for

erosion

and

potentialities of the

Despite the forebodings of
builders, residential construc¬
tion, which along with the pro¬

government' policy¬
makers to have these objectives in
mind, but pushing toward them
blindly will only bring on the
bitter ravages of price inflation

some

U.

by

economic life.

our

paying

two and

a

cer¬

revise

to

ket.

less

no

businesses

volume

borrowings.

and

expenditures for fixed capital by
major corporations in recent
weeks

duction

a

ment

press announcements of additional

an

large amounts of internally gen¬
erated
funds
at
their
disposal
many
industries will be in tne

life insur¬
ance
business
than
by
others.
Prosperity, industrial growth, ris¬
ing living standards are, of course,
good for the American people ar.d
they are good for the various
joyed

of Jan.

as

practice

the

end.

same

large amounts of municipal and
bonds.
The
frequent

revenue

sales

years.

conditions

General business

come

discuss

to

of

automobile

caused many observers of business

the

prosperity and
national economic growth are en¬

the

egations of sales finance company
executives

number

a

unexpectedly
throughout 1955 has

level

the

and

bank

that

toward

Veterans'

decline

August

Administration

in

fact

high

and

Agency

than

have remained at

Policy

Finance

Home

of

look
The

Continued

Thursday, January 12, 1956

...

Bank

and

Baltimore,

Trust

Md., has

several changes in the

executive

staff. John
of
the

Vice-President

bank at its Marine Office, retired

Total

resources—

Deposits
Cash

—

and due

S.

.

S

324,281,581 305,617,320
63,086,672

Govt,

Oct. 5/55

327,574,017

from

banks
U.

247,251,848

47,581,067

secu¬

rity holdings

180,485,106 175,946,062

discounts

83,450,455

83,691,724

Undivided profits—

5,294,155

5,152,018

Loans

&

J

Number 5498... The Commercial and Financial Chronicle

Volume 183

(195)

The

Indications of Current
Business Activity

week

IRON

Indicated

steel

AND

Equivalent to—
and castings

Cruae

PETROLEUM

oil

§2,388,000

100.3

AMERICAN GAS

average

(bbls.

2,421,000

2,007,000

Total

(bbls.)

6,991,600

6,836,400

Dec. 30

.

6,987,050

117,907,000

7,838,000

7,801,000

Mixed

6,342.950

output

(bbls.)

Dec. 30

27,249,000

27,063,000

26,963.000

25,319,000

output

(bbls.)

Dec. 30

2,475,000

2,796,000

2,312.000

Dec. 30

13,207,000

12,345,000

12,475,000

11,846,000

Dec. 30

9,366,000

9,005,000

8,350,000

8,311,00.

Dec. 30
Dec. 30

164,859,000

161,741,000

157,535,000

157,228,000

27,437,000

28,778,000

33,221,000

29,281,000

(bbls.)

output

(bbls.)

of

(bbls.)

Distillate

fuel

Residual

fuel

ASSOCIATION

(bbls.)

oil

OF

(bbls.)

gasoline

at

at

oil

(bbls.)

117,954.000

140,103,000

109,631,000

39,500,000

44,156,000

51,361,000

39,872,000

Dec. 31
of cars) —Dec. 31

574,663

672,355

728,216

562,975

645,351

617,489

(number

cars)

of

CONSTRUCTION

(no.

Total

U.

4/,?

Jan.

(U.

coal

BUREAU

S.

and

lignite

Pennsylvania anthracite
DEPARTMENT

STORE

5

FAILURES

$330,333,000
139,050.000

232,952,000

103,764,000

191,283,000

181,992,000

73,869,000

98,619,000

163,099,000

5

26,820,000

5,145,000

28,184,000

97,903,000

9.100,000

*10,335,000

10,380,000

iper

(per

gross

Scrap steel

DIJN

—

Straits

&

(£t.

Kluc

(East

MOODY'S

512,000

*231

197

80

10,751,000

11,426,000

9,833,000

198

174

219

5.174c

$56.59

$53.33

$53.00

$49.50

$34.17

Jan.

4

16.270c

15.500c

15.500c

15.000;

van.

4

16.300c

15.300c

15.300c

14.803c

Jan.

4

13.000C

13.000c

13.030c

11.500c

at

Jan. 10

95.08

94.66

95.07

107.27

107.09

107.27

110.70

110.70

110.52

109.24

107.09

107.27

110.34

102.30

101.97

102.13

105.00

105.34

105.34

105.52

STOCK

107.44

107.62

108.70

108.52

108.70

of

at end

AND

SPECIALISTS

(customers'

ON

N.

Y.

Total

chares

3.43

3.43

3.42

3.24

3.30

3.31

3.30

3.25

3.24

3.07

404.6

405.2

408.5

413.6

Total

MEMBERS

OF

Total

Other

101

98

47

495,467

654,613

floor—

107.15

107.17

1,053,400

1,157,947

1,279,079

LABOR

$74,162,912

$58,180,965

994,765

1,081,587

1,117,375

All

for account of members—

5,402

9,797

8,040

988,119

1,076,185

1,107,578

1,275,786

$43,269,106

$53,036,758

$59,408,308

$58,223,693

211,700

315,970

314,300

448,729

3lT,700

315,970

3i4,300

4~4~8~729

343.4G0

413,410

479,820

346.039

Jan.

PRICES,
(11)47-49

NEW
=

.

161,193,000

125,255,000

156,937,000

173,742

__

.

__

_

—-■

—

170,721

251,547

370.633

328,503

320,340

308,022

312,215

30

Nov.

110,870

_

_

...

!

—

90,994

86,053

172,985

_

153,310

138,233

Nov.

20

_

_

153,109

_

122,645

138,357

142,573

113,781

252,057

234,830

216,101

214,379

206,038

_

Produced

_

_

_

_

Shipped
Hull

_

Fiber

Stocks

(1,000-lb.

Nov

194,920

161,371

1,230

30

—

546

_

...

_

_

_

—

__

...

492

1,141

1,378

1,739

1,087

-

...

.

..

414,230

506,660

549,780

1,283

1,771

Grabbots, etc. (1,000 pounds)—
Nov.

30

3,888

_

_

_

.

6,362

2,740

3,583

2,708

_

_

___

4,690

1,906

_

___

846

2,102 '

796.23C

12,338,G39

13,262,940

12,657.850

18,464,016

12,752,8G0

13,769,600

13,207,630

19,260,240

SYSTEM— !!)47-4.<)

SERVE

Month

of

1,727.660

2.216,840

189,930

233,750

245,270

397,520

1,250,310

1,336,070

1,345,820

1.807.25C

1,440,240

1,569,820

1,591,090

2.204.77C

EDISON

405,380

369,650

358,990

620,54C

23,500

12,300
346,690

375,620

,

47,400

40.60C

380,310

346,980

394,380

609.36C

_

ELECTRIC

Kilowatt-hour
of

Month

894,120

703,430

cf

42,121,904

at

customers
AVERAGE

STOCKS—Month

30

Sept.

YIELD
of

41,956,772

35,198,095

$695,804,000

_

COMMON

127,450

94,800

146.00C

Industrials

816.227

614,402

755,057

Railroads

941,246

943,677

709,202

901,057

2,307,830

2,998.950

2.806,710

2,580,611

300,840

384,700

387.470

584,120

2,439,636

2,532,607

2,307,202

3,131.067

2,740,476

2,917,307

2,694,672

3,715,187

Utilities

$690,352,000

$621,259,000

52,272,398

52,114,708

Banks

_

Dec.:

■

•,

(24)

3.96

4.97

4.89

4.60

_

(not incl. Amer. Tel. & Tel.)

4.55

4l50

4.09

4.22

;

—

(200)

—

—-

—

4.09

4.09

2.69

(15)

Insurance

Average

V-::

3.92

5.24

—

_

50,895,229

OF

(125)

(26)

201

of

743,239

98.610

116

/•■Yk-.

consumers—

customers—month

_

ultimate

WEIGHTED

MOODY'S

842,636

Dec. 17

ultimate

to

(000's omitted)

ultimate

from

122
148

INSTITUTE:

sales

Sept.

September
Number

101)

929,440

121
209

seasonal variationsseasonal
adjustment

568,76C

403,810

Average—100—

December:

for

Without

1,699,450

SALES—FEDERAL RE¬

STORE

DEPARTMENT

Adjusted

1,508,740

SERIES

—

U. S. DEPT.

NON-FARM

OF

ANCE

1956,

as

fIncludes 937,000 barrels of

111.1

2.63

2.52

4.06

4.09

4.20

3

85.5

85.2

83.8

91.2

3

98.0

103.3

3

71.4

69.7

72.4

94.8

Jan.

3

119.6

*119.6

119.4

115.1




98.4

97.7

UNITED

foreVn

LOAN

AND

2,294

2,254

2,365

$280,821,613

$280,189,391

$278,783,756

4,544,518

5,118,945

5,179,536

$276,277,095

$275,070,446

$273,604,220

£.4907*

2.4257*

2.291ft

INSUR¬

of

Sept.:—

CORPORATION—Month

STATES

crude' runs.

§Based on new annual capacity of 128,363,090 tons, as

tAIl-time record.
Investment Plan.

DEBT

GROSS

DIRECT AND

GUARANTEED—(000's omitted):
As

of

Dec.

General

against Jan. 1, 1955 basis of 125.828,310 tons
not reported since introduction of Mon-hly

tNumber of orders

SAVINGS

FORECLOSURES-

109.8

Jan.

fiirure

111.4

Jan.

farm and foods

111.5

.—Jan.

other than

3

ESTATE

REAL

FEDERAL

Jan.

Net

'

bales)—

_

Shipped
Motes,

__

_

100):

foods

commodities

1,

_

(running bales)-^

Produced

Dec. 17

'

of

712,619,000

140,847,000

144,267,000

——

products

^Revised

Linters

Stocks

Dec. 17

Meats
All

283,477,000

367,612:

__

30.

Nov.

(tons)

Produced

Dec. 17

commodities

Processed
,

171,510,000

130,453,000

_

(tons)

(tons)

Dec. 17

Commodity Group—
Farm

152,131,000

1,283,826

6,64G

—

sales

—

215,781,000

189,943,000

30

Nov.

Shipped (tons)

1,173,065

$62,678,227

■—mnm

TotaJ sales

155,640,000

236,807,000

.;••

Dec. 17
nT—-

204,267,000

__

(tons)

Dec. 17

purchases

Other

Shipped

106.54

$55,172,447

Dec. 17

purchases

—»—'i-111

2,441,751

323,844,000

_

(pounds)

(tons)

Pioducecl

Dec- 17

sales

WHOLESALE

Stocks

Stocks

SeC'JZ

—

659,109

1,898,398

262,589,000

-

_

363,024

HUllS—

J?sc' JZ
|?ec-

~

1,141,803

203,340,000

30—r

(pounds)

Consumption

Revenue

sales

sales

707,751

Cake and Meal—

the floor—

purchases

S&16S

1,689,369

780,963
2,523,221

-

Nov.

(pounds)

140,640

107.50

6

Jec-)ec- 17

.

Total rcund-lot transactions
Total

Stocks

Produced

^ec- 17
I?ec- J7

—-—

sales

Other
Total

.

1,405,786

(pounds)

214,669

06

Dec- 17

transactions initiated off the

Total

of

Oil—

Shipped

Bhcrt sales

Total

PROD¬

'

397,989

FOR

sales

Other

1,746

V
,

,

286,926

577,240

£ec- \nn
^ec-

Other transactions Initiated on
Total

3,042

1,793

i

30

(pounds)

Shipped
Refined

,,

_

TRANSACTIONS

SEED

_t.

_

(pounds)

Produced

286,600

(SHARES):

purchases

Other

3,218

1,770

(tons)

Nov.

219,204

SYLES ON THE N. V. STOCK
STOCK TRANSACTIONS

sales

Bhcrt sales

2,407

3,285

COMMERCE—Month

mills

at

290,959

.Dec. 17

——

STOCK

COTTON

(tons)

211,615

31
31
31
31

ACCOUNT OF MEM¬
BERS. EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—

.

2,606

_____

3.11

3.24

Stocks

3.45

AND ROUND-LOT

sales

ROUND-LOT

7,195

2,757

__

_

_______

Oil—

Crude

3.15

3.62

by dealers—

round-lot sales—

Total

3.32

3.63

Dec. 17
Dec. 17
Dec. 17

Short sales
Other

3.05

3.33

3.61

Dec. 17
Dec. 17

—

ACCOUNT

FOR

3.21

3.32

Dec. 17

sales

ROUND-LOT

__

OF

(tons)

Stocks

Number of shares—Total sales

of

3.22

3.21

Stocks

'

by dealers—

purchases

_

'

sales

EXCHANGE

7,677

*

STOCK-'.

value

Vitmhor

2.92

Dec. 17

other

TOTAL

4,689

7,812

purchases>—T

sales

Round-lot

3.14

Dec, 17

short

Other

3.13

Dec. 17

Bhcrt sales

5,324

Seed—

.•Crushed

EXCHANGE COMMISSION:

SECURITIES

Customers'

-!:

3.13

ODD-LOT ACCOUNT OF ODD-

FOR

by dealers

sales

Cotton

3.14

.—.Jan.

Customers'

Dollar

1,631

5,384

•

October:

REPORTER PRICE INDEX—

DRUG

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales

Round-lot

5,398

1,627

loans

.

UCTS—DEPT.

2.62

Dec,
Dec.
..Dec.
Dec.

value

Dollar

10,296

5,917

_

_

ANI)

SEED

Produced

of shares

Number

2.87
3.32

Jan. 10

period

credit

accounts

COTTON

ASSOCIATION:

(tons)

—

2.90
3.33

Jan- 10
Jan. 10
Jan. 10

INDEX——

(tons)

2.87
3.32

Jan- 10
Jan. 10
Jan. 10

„

OKALEKS

sales

111.81

Jan- 10

activity

EXCHANGE

22,014

14,095

__

111.07

—

TRANSACTIONS

LOi

$29,209

26,963

credit

term

:

credit

Received

»vEKAGE =100

Odd-lot

$34,640

RE-

SERIES—Esti-

—

__

Service

''■ft

(tons)

itno

$35,059

1,634

FEDERAL

30:

modernization

Charge

108.70

107.62

Jan. 10
Jan. 10

FAPERBOARD

OIL, PAINT AND

2,850,695

goods

loans

112.19

Jan. 10

Group

of

*1,975,131

(net tons)

Single payment loans

114.66

109.06

107.27

AVERAGES:

DAILY

Personal

110.52

—.

Jan. 10

Group

orders

32,500

1,781,185

6,057

Nov.

consumer

Repair and

98.24

Jan. 10
-—Jan. 10

t

COMMODITY

Unfilled

*162,984

27,247

THE

OF

credit

Non-instalment

AVERAGES:

DAILY

Group

Percentage

5,063,400

177,734

month

credit

Other

YIELD

received

Instalment

87.125.

—Jan. 10

Production

5,095,900

*6,234,149

tons),

intermediate

of

as

102.250c

II

Orders

*6,397,133

OF

(000's

OUTSTANDING—BOARD

and

consumer

107.750c

II—II

MOODY'S

millions

108.500c

"

NATIONAL

in

4

Group

Utilities

$260,600,000

6,453,386

DEPT.

S.

November

tons)—

(net

short

Jan.

at

corporate

Railroad

$669,000,000

BY

Automobile

Group

Industrials

mated

31.325t

Aa

Public

!

44.325c

Aaa

Baa

1,302

6,631,120

U.

—

of

SERvfc SiS'i'ElYi—REVISED

44.475c

L. 8. Government Bonds

A

3,754

3,772

cars

tons)

(net

44.925c

Group

Average

12,843

I

MINES)—Month of Oct.:

GOVERNORS

4.797c

$59.0.9

Jan. 10

BOND

51,066

export

INSTJ^UTEl—

coke stock at end of

OF

5.174c

$59.09

Jan. 10

Industrials

3,012,000

14,172

OF

coke

29.700c

—

MOODY'S

231,360,000

627,000

3,427

CAR

Month

—

(net

coke

Beehive

43.175c

Baa
Utilities

263,500,000

8,636,000

and

delivered

CONSUMER CREDIT

5.174C
$59.09

4
4
4

109.24

Public

Production

42.700c

corporate..

Railroad

9,349,000

(barrels)—

freight

(BUREAU

Total

Aaa
A

12,414,000

198

QUOTATIONS):

U. 8. Government Bonds

Average

20,168,000

11,655,000

:

43.575c

PRICES

BOND

23,406,000

(barrels)

domestic

CORPORATIONS

S.

omitted)

4
4

Louis)

St.

52,000

24,882,000

___

CASH DIVIDENDS—PUBLICLY REPORTED

at

Louis)

40,000

251,655,000

imports

cars

at

York)

20,276,000

34,000

...

November:
new

Jan.
Jan.

York)

Lead

of

for

freight

Oven

Jan.

M. J.

(New

(New

549,000

&

at

Lead

524,000

11,057,000

7

iislJbJan.
J&iiuJan.

ton)

refinery

tin

Orders
New

COMMERCE

89

-—~££-Jan. 5
'0$,
J

lb.)

184,527.000

21,663,000

(barrels)

(barrels)

all stock

Oven

(per gross ton)
(E.

imports

consumption,
(barrels)

COKE

Eiecuciytic copper—
Domestic refinery at

Expert

479,000

Dec. 31

INDUSTRIAL)

204,855,000

206,604,000

21,801,000

(barrels)———I

output

(barrels)

products

Increase

7,430,000

Jan.

AND

228,307,000

201,919,000

v

84,089,000

100

PRICES:

COMPOSITE
steel

Pig iron

METAL PRICES

Refined

U.

BRADSTKEET, INC

Finished

oil

$414,944,000

173.000,000

kwh.)

000

(COMMERCIAL

AGE

Crude

output

Month

$276,764,000

59,770,000
100,689,000

:

INDEX—FEDERAL RESERVE
=

237,700

$295,000,000

gasoline

AMERICAN RAILWAY

'

1—Dec. 31
Dec. 31

(tons)

187,218

(barrels of 42 gal¬

each)

Benzol

MINES):

OF

AVERAGE

(in

output

C

40 500

247,209

'

domestic production

Natural

INSTITUTE:

ELECTRIC

Electric

1

$160,459,000

,

(tons)

SALES

olsll iVI—1U47-49

IRON

5

Jan.

—»

—.

municipal

OUTPUT

bituminous

EDISON

$

Jan.

———,

Federal

COAL

5

Jan.

Jan.

and

•>'

"

construction

State
'

.

construction

S.

Private construction

Public

"

1

*

507,349

ENGINEERING

—

'

" '

NEUS-KECORD:

5,114,800

25,393

INSTITUTE—Month

*

Indicated

RAILROADS:

AMERICAN

freight loaded

freight received from connections

5.393,000

4,745,109

223,754,000

PETROLEUM

lons

529,386

Dec. 30

at

Revenue

ENGINEERING

112,792,000

4,957,720

31,622

therms)
therms)____
(M

Domestic crude oil output

Dec. 30

at

Re/enue
CIVIL

Ago

5,730,156

therms)

(M

sales

(M

September:

Total

Itocks at refineries, bulk terminals, in transit, in pipe lines—
unfinished

sales

gas

AMERICAN

2,606,000

fuel

Kerosene

Year

Month

7,296,000

>

Distillate

and

of that dates

Previous

6,008,987

therms)

(M

gas

gas
sales
Manufactured gas

of

Kerosene

Finisned

are as

ASSOCIATION—For month of

Natural

output—dally

Dec. 30

oil output

of quotations,

cases

Month

83.2

Gasoline

Residual fuel

in

or,

Latest

INSTITUTE:

Crude runs to stills—daily average

■

that date,

either for the

are

November:

42 gallons each)

oil

Dates shown in first column

Agr

*97.6

*2,403.000

on

production and other figures for th€_

cover

Year

A"'

§97.0

.Jan.15

(net tons)

condensate

and

Month

WTnnV

,Jan.15

(percent of capacity).

Steel Ingots
AMERICAN

INSTITUTE:

STEEL

operations

month available.

or

month ended

or

Previous

Latest
AMERICAN'

following statistical tabulations

latest week

39

31

fund

debt

Computed

—

.

balances

——

anijual rate

—

___

_

_

~—_—

_

—

-

-

—

40

The Commercial and Financial Chronicle

(196)

Thursday, January 12, 1956

...

if INDICATES

Now in

Securities
Aerco

at

Corp.

5% cumu¬
participating preferred stock (par $100) and 816
(letter of notification) 816 shares of

Dec. 20

lative

to class A stockholders of record

of

to be offered

(no par)

ehares of class A common stock

Dec. 15, 1955, in units

shares

share of each class of stock for each four

class A

held; rights to expire on Feb. 15, 1956.

one

Registration
share and 8,800 shares are to be offered in

Atlas

Plywood Corp., Boston, Mass.
97,144 shares of common stock

Inc., New York

(by amendment) 10,000,000 shares of capital
Proceeds—For investment.
•

Yr Agricultural Equipment Corp., La Junta, Colo.

per

120,000 shares of preferred

share.

preferred, at par; and for common, 50 cents
Proceeds — For development and reserve.

Underwriter—None.

& Iron Corp.
Dec. 28 filed 580,000 shares of common stock, of which
£30,000 shares are to be offered publicly.
Price—$3 per
.share.
Proceeds—• For liquidation of liens on mining
properties; for mining equipment and construction of a
laboratory and field office; for construction and equip¬
ment of a plant suitable for the processing of beneficiation of lower grades of manganese ore or Oriskany iron
ere; and for working capital.' Office—Charleston, W. Va.
Manganese

Allegheny

Underwriter—Mitchell
Allied-Mission

Securities, Inc., Baltimore, Md.

Oil/ Inc., Tulsa, Okla.

■Oct. 3

(letter of notification) 598,800 shares of common
ctock (par one cent). Price—50 cents per share. Proceeds
—-For

acquisition, exploration, drilling and development
Address—P. O. Box 1387, Tulsa, Okla. Under¬
writer—United Securities Co., same address.

rf leases.

notification) 15,000 shares of 6%

lative preferred stock (par $10) and
A

common

and

$5.50

26,350 shares of class

share for class A.

preferred stock;
Proceeds—For working

American Business
9

(letter

cumulative

Research, Inc.
notification) 19,000 shares

of

preferred

stock.

Price

—

At

of
($5

par

nonper

tkare).

Proceeds—For working capital and general cor¬
porate purposes. Office—8002 Wisconsin Ave., Bethesda,
I>Id.

Underwriter—G.

J. Mitchell, Jr.,
Ave., N.W., Washington, D. C.

York

Co.,

1420

New

if American M. A. R. C., Inc., Pittsburgh, Pa.
(letter of notification) 300,000 shares of common

Dec. 30
stock.

Price—At par

($1

share). Proceeds—To pur¬
chase Hallett diesel engine business of Moore Machinery
Co. of Los Angeles; ,complete purchase of the patent
licenses from Diesel Power, jlnc. and operating capital.
Office—Oliver Building, Mellon Square, Pittsburgh 22,
Pa.

per

Underwriter—Langley-Howard, Inc., Pittsburgh, Pa.,

Ar Apache Uranium Co., Las Vegas, Nevada
Dec. 27 (letter of notification) 1,425,000 shares of com¬
mon stock (par one cent).
Price—Seven cents per share.
Proceeds—For

mining
St., Las Vegas, Nevada.
Arizona

Public

expenses.

Office

—

519

Carson

Finance

insurance firm.

Atlantic

City Electric Co. (2/1)
Dec. 29 filed 75,000 shares of common stock (par $6.50).
Price—To be supplied by amendment.
Proceeds—Fot
construction

Statement effective Dec. 19.

-

•

program.

Underwriters—Union

Securities

Corp. and Smith, Barney & Co., both of New York.
Atlas

Industries, Inc., Houston, Texas
Oct. 10 (letter of notification) 200,000 shares of com¬
mon stock (par one cent).
Price—$1.50 per share. Pro¬
ceeds—To purchase dies and materials and for working
capital, etc. Office — 6006 Harvey Wilson Drive, Hous¬
ton, Texas. Underwriter — Benjamin & Co., Houston,
Texas.

Investment Co.,

Kansas City,

Mo.

of

22,500

$750,000

common

shares

if Cessna Aircraft Co., Wichita,: Kansas
3 (letter of notification) 3,840 shares of

Jan.

selling stockholder.

1971.

$3,000,000 of 5% sinking fund

Proceeds—To increase inventory and to retire subsidiary
Underwriter—Van Alstyne, Noel & Co.,

indebtedness.

New York.

Las Vegas,

Nev.

Jan. 9 filed 20,800 shares of class B common voting stock,
of which 12,000 shares are to be offered for
public sale

a

total

100%

1975

Price—100% of principal amount./,

purchase warrants for

common stock, par $1
per share).
(in units of $500 each). Proceeds—For
working capital, etc. Underwriter—Paul C. Kimball &
Co., Chicago, ill. Offering—Expected in January.

Price—At

debentures due

and

stock

of

stock

(par $1).

Kansas.

Price—$26

Underwriter—Harris

Kansas.

common

proceeds

snare,

per

—

To a

Office—5800 Pawnee Road, Wichita,

Upham

&

Wichita,

Co.,

'

Chaffin Uranium Corp.,

Salt Lake City, Utah
Sept. 6 (letter of notification) 12,500,000 shares of non¬
capital stock. Price—At par (one cent per

Corp.
|
Sept. 7 (letter of notification) 20,000 shares of common
(par $1). Price—$5 per share. Proceeds—To set
up a factory and purchase equipment and machinery for
manufacture and sale of the "grip-lock" driver and
screw.
Office—137 Grand St., New York, N. Y. Under¬
writer—Ellis-Greenberg Co., 1051 Carroll St., Brooklyn,

assessable

N. Y.

shares

Automatic Tool

stock

B. S. F.

(1/20)
Dec. 30 filed 92,636 shares of capital stock (par $1) to
be offered for subscription by stockholders of record
Jan. 20, 1956, at the rate of one new share for each two
Co., Birdsboro, Pa.

shares held.

Price—To be supplied by amendment.

Business—A

Pro¬

registered invest¬

Underwriter—None.

if Bethel & Mt, Aetna Telephone & Telegraph Co.
Jan, 5

(letter of notification) 3,000 shares of 5% cumu¬
preferred stock (par $50). Price—$52 per share.

lative

Proceeds

For the

—

conversion of the Womelsdorf Ex¬

change from magneto to automatic dial operation and
to provide working capital.
Office—100 East Main St.,
Myerstown, Pa. Underwriter—Blair & Co., Inc., Phila¬
delphia, Pa.
•
1
,■
Big Chief Uranium Co., Pueblo, Colo.
Sept. 20 (letter of notification) 1,500,000 shares of non¬
assessable common stock (par 10 cents). Price—20 cents
per share.
Proceeds—For expenses incident to mining
operations. Office — 441 Thatcher Bldg., Pueblo, Colo.
Underwriter—Investment Service Co., Denver, Colo.

Big Ridge Uranium Corp., Reno, Nev.

Proceeds—For exploration and development costs. Office

Virginia St., Reno, Nev. Underwriter—Mid

America Securities, Inc., Salt Lake City, Utah.

Big Ute Uranium Corp., Overton, Nev.
(letter of notification) 3,000,000 shares of

mon

stock.

Price—At par (10 cents per share).

mining

expenses.

com¬

Proceeds

Underwriter—James

E.

Reed

Co., Inc., Reno, Nev.

(par

10

cents)

and

20

to

sold

be

in

units

shares.

common

of

preferred

one

Price—$102

unit.
Business

per

Proceeds—For equipment and working capital.

—Lightweight portable structures. Address—c/o Walter
W. Bird, President and Treasurer, 355 No. Forest Road,
Williamsville, N. Y. Underwriter—None.
Bonus

Uranium, Inc., Denver, Colo.

Oct. 28 (letter of notification)

3,000,000 shares of capital
cent). Price—10 cents per share. Pro¬
mining expenses. Office—1154 Bannock St.,
Denver, Colo. Underwriter — Mid-America Securities,

stock

(par

Utah.

Charleston Parking Service, Inc..
Aug. 1 (letter of notification) 120,000 shares of non¬
voting common stock, class A—(par 50 cents) and 60,000
to

one

Inc., Salt Lake City, Utah.

B-Thrifty, Inc., Miami, Fla.

tional

retail

per

stores.

share.

Northwest
writer—None.

37th

common

Proceeds—To

Business

Office—5301

—

stock

open

Supermarket

Ave., Miami, Fla.

(par
addi¬

concern.

Under¬

••

if Bulova Watch Co., Inc., Flushing, N. Y.
9 filed $1,000,000 of participations in company's
Employee Stock Plan, together with 40,000 shares of
stock

which

may

in

common

units

stock, class B

of two

class

A

(par

and

10 cents)

one

class B

Price—$5 per unit. Proceeds—For general work¬
capital.
Office—505 National Bank of Commerce

ing
Building,

Charleston,

W.

Va.

Underwriter—Crichton

Investment Co., same address.

if Charlton Sire Plan, Inc.
(letter of notification) 270 units of co-ownership.
Price—$500 per unit. Proceeds—For acquisition of prop¬
erty at 11-13 Charlton St., New York, N. Y.
Office—115
Chambers St., New York, N. Y.
Underwriter—Sire Plan

Portfolios, Inc., at latter address.
Chemical

Ventures

Syndicate, Ltd.

Dec. 23

(letter of notification) 295,000 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—
To acquire property, purchase inventory and for work¬

ing capital and general corporate purposes. Office—129
South State St., Dover, Del. Underwriter—Mortimer B.
Burnside & Co., Inc., New York.
Cisco Uranium Corp., Salt Lake
City, Utah
Aug. 10 (letter of notification) 7,000,000 shares of capital
stock
(par one cent).
Price—Three cents per share.
2nd

West, Salt Lake City, Utah.
Securities, Inc., Denver, Colo.

Office—2630 South

Underwriter—Denver

if Clark Oil & Refining Corp.

(1/30-2/3)
5 filed 87,500 shares of $1.20 cumulative convert¬
preferred stock, series B (par $20).
Price—To be
supplied by amendment. Proceeds—For expansion and
working capital. Office—West Allis, Wis. Underwriter
Jan.

—Loewi &

Co., Milwaukee, Wis.

if Clark Oil & Refining Corp.
5

filed

25,000

shares

of

(1/30-2/3)

stock (par $1).
by amendment. Proceeds
To
Emory T. Clark, President of the company. Office—West
Allis, Wis. Underwriter—Loewi & Co., Milwaukee, Wis.

Price

—

common

To be supplied

—

•

Coastal j States Oil & Gas Co.
19 filed 500,000 shares of common stock
(par $1).
Price — To be supplied by amendment
(expected at

Dec.

around

$7

share).

Proceeds—To pay off loans in¬
purchases, for construction of gas pipe¬
Business—To develop oil
Christi, Texas.
Underwriter —
Blair & Co.,
Incorporated, New York. Offering—Tempo¬
rarily postponed.
per

curred for land

lines and for further drilling.
lands.
Office — Corpus

Cole

Nov.

Engineering Corp.

9

(letter of notification) 2,575 shares of common
Price—$10 per share. Proceeds—For new ma¬
chinery, etc. Underwriter—Spencer, Zimmerman &

be

purchased

Co.,

Inc., Columbus, Ga.
Colohoma

Uranium,

Inc.

pursuant

(3/1)

Nov. 9 filed 2,500,000 shares of common stock

cent).

Price—40 cents

pen

tion and

Jan.

common

voting

stock.

Nov. 23 filed 37,000 shares of class A

Price—$38

of

offered

share.

ceeds—For

$25).

be

Jan.

Structures, Inc.
Dec. 16 (letter of notification) 1,400 shares of preferred
stock
(par $1Q0) and 28,000 shares of common stock
snare

—
For expenses incident to mining
Office—810 Deseret Building, Salt Lake City,
Underwriter—Utah Securities Co., same City.

ible

Oct. 28
—For

Proceeds

activities.

Proceeds—For mining expenses, etc.

Oct. 19 (letter of notification) 9,000,000 shares of common
stock (par one cent). Price — Three cents per share.
—206 North

ihare).

Dec. 21

.

if Atlas

filed

Atlas Plywood Corp. (1/23-27)
Dec. 19 filed $3,000,000 of 5V2% convertible subordinated

Birdair

Underwriter—None.

Co., Phoenix, Ariz.
Sept. 16 filed 78,006,081 shares of common stock to be
offered for subscription by holders of life insurance
policies issued by Public Life Insurance Co. Price—20
cents per share. Proceeds—For working capital. Under¬
writer—None, sales to be directly by the company or by
ealesman of the

80%.

share

ment company.

capital and general corporate purposes. Office •— 433
Highland Avenue, N. E., Atlanta, Ga.
Underwriter—
Johnson, Lane, Space & Co., Inc., Atlanta, Ga.
Dec.

7

detachable

common

Atlas

cumu¬

stock (par $1). Price—Par for

per

Nov.

being offered

ceeds—For investment.

Yr American Art Metals Co., Atlanta, Ga.
Dec. 29 (letter of

(par $1)

debentures due

(par $1); 30,000 shares of common stock (no par).

Price—For

filed

of participating junior subordi¬
nated sinking fund 6% debentures due Nov. 1, 1970 (with

one

Price—At market.

stock

—

York.

shares of

Underwriter—None.

Dec. 23 (letter of notification)

14

Oct.

Century Acceptance Corp.,

in exchange for the outstanding 291,431
stock of Plywood, Inc. on the basis of
for each three Plywood shares held.
Atlas presently owns 496,680 shares of Plywood, Inc.
stock and desires to acquire at least an additional 133,809
shares in order to bring its holdings of such stock to

stock.

Canuba Manganese Mines,
27 filed 500,000 shares of

New

Co., of Las Vegas, Nev.

—For corporate purposes.

Jan. 9 filed

ISSUE

Close Mortgage & Loan Co. and Jack Hemingway Invest¬

per

Nov.

Yr Affiliated Fund,

REVISED

ment

Price—

v*ood, N. J.

ITEMS

•

PREVIOUS

Ltd.
capital stock (par $1Canadian). Price—$1.50 per share. Proceeds—For ex¬
ploration of mining properties in Cuba. Office—Toronto,
Canada.
Underwriter
Baruch Brothers & Co., Inc.,

$50

exchange for preferred stock. Proceeds—For payment of
bank loans, and for capital and surplus. Underwriters—
Rex Laub and Max Laub, of Tremonton, Utah, and M. D.

$101 per unit to stockholders; $110 to

public. Proceeds
Office—166 Eagle St., Engle-

ADDITIONS

SINCE

(par

one

share. Proceeds—For explora¬

development expenses and for general corpo¬
rate purposes.
Office—Montrose, Colo. Underwriters—
General Investing
Corp*New York; and Shaiman & CoDenver, Colo.

to

Comet Uranium

Corp., Washington, D. C.
(letter of notification) 700,000 shares of comif C. & F. Musicasting Co., Phoenix, Ariz.
:mon stock (par one cent).
Price—Five cents per share,
Jan. 3 (letter of notification) 25,000 shares of common r. Proceeds—For
mining operations. Office—501 Perpetual
stock (no par) and 5,000 shares of preferred stock (par- ^Bldg.,
Washington 4, D. C. Underwriters—Mid America
$10) to be offered in units consisting of five shares of
Securities, Inc., Salt Lake City, Utah; and Seaboard
common and one share of preferred.
Securities Corp., Washington, D. C.
Price—$15 per unit.
the Plan.

Aug. 20

Proceeds—For payment of additional equipment and for

operating expenses during the period of placing the
equipment. Office—2820 North 16th St., Phoenix, Ariz.
Underwriter—None.

• Commercial

Credit Co., Baltimore, Md.
(1/24)'
$50,000,000 of senior notes due 1976. Price
To be supplied by amendment. Proceeds
For working
capital to finance increased volume of business. Under¬
Jan. 6 filed

-

—

if California

New York

Boston

Philadelphia

Private Wires




Pittsburgh

San Francisco
to

all

offices

Chicago

Cleveland

Life Insurance Co.
(letter of notification) 10,000 shares of class A
common stock (par $5).
Price—$10 per share. Proceeds
—To be used to increase capital stock and
surplus of the
company so it can qualify to do business in other states.

writers—The First Boston

Dec. 23

Co., both of New York.

Office—4334 MacArthur

to

writer—None.

Blvd., Oakland 19, Calif. Under¬

•

Corp. and Kidder, Peabody &

Continental Copper & Steel

Industries, Inc.

(1/16)
Dec.

21

filed

263,771 shares of

stock (par $2)
be offered for subscription by stockholders at
rate of
one new
share for each five shares held Jan.
common

16,

1956;

Volume 183

Number 5498

The Commercial and Financial
Chronicle

...

rights to expire Feb. 2. Price—To be supplied by amend¬
(to be not less than $10 per share). Proceeds--To

^Cumberland Corp., Lexington, Ky. (1/23-27)
Dec. 30 filed $900,000 of 12-year 5%
sinking fund deben¬
tures due Jan. 15, 1968, and 90,000 shares of common
stock (par 50 cents) to be offered in units of
$500 of

ment

increase inventories and receivables
required for expan¬
sion of sales and for other
general corporate purposes.
Underwriters—Allen & Co., P. W. Brooks & Co. Inc. and

by

(1/30-2/3)
Jan. 10 filed 125,000 shares of common stock
(par $1).
Price—To be supplied by amendment.
Proceeds
To
selling stockholders. Underwriter
Allen & Co.. New
York.

com¬

Price—At

par (six cents per share).
Pro¬
mining operations. Office
1026 Kearn»
Bldg., Salt Lake City, Utah. Underwriters—Potter In¬
vestment Co., and Mid-America
Securities, both of Sidt
Lake City, Utah.
•

For

Cuba

Nov.

21

Public

by

used

filed

Works

bonds

of

due

4%

Courts

Construction Co.

Street,

Sycamore,

Co.

Incorporated, Philadelphia, Pa.

Corp., Oil City, Pa.
(letter of notification) 46,000 shares of common
(par $1). Price—$6.50 per share. Proceeds—To
bank loans and debts; and for working capital.

Nov. 28
stock
pay

Office—40 National Transit

Sept. 20

share.

per

and

Dec. 29
stock.

or

water system and the construction

of 10

homes; and for working capital. Office—711 North
Azusa Ave., Azusa, Calif;
Underwriter—Harry Pon, 2334
South Third, Arcadia, Calif.

Proceeds—Expenses incident to mining

,

...

Dinosaur Uranium Corp., Salt Lake

oper¬

ations. Office—223 City and County Bldg., Casper, Wyo.

Price—To

Under¬

if Desert Shores Investment Corp.
(letter of notification) 300,000 shares of common
Price—At par ($1 per share). Proceeds—For in¬

Operation, Office
111. Underwriter—

shares of non¬
(par five cents). Price—50 centsi

stock

common

Bldg., Oil City, Pa.

writer—Grover O'Neill & Co., New York.

vestment in bonds

To

—

Elm

reduce

Dennis Run

Minerals Co., Casper, Wyo.
(letter of notification) 600,000

assessable

Veterans,

1983.

Proceeds

West

Delta

be supplied
Romenpower Electra
Underwriter—Allen & Co., New York.

amendment.

&

None.

(1/16-20)

$2,000,000

—

for conversion to automatic dial

—112

—

(Republic of)

(about $550 per unit).
Proceeds
To
charcoal brickettes and chemical

make

to

Dec. 30 (letter of

(letter of notification) 5,000,000 shares of

—

plant

Price—80%

of principal amount.
Proceeds—
mortgages and for construction cost. Office
—Cherry Hill, near Camden, N. J. Underwriter—Blair

* DeKalb-Ogle Telephone Co., Sycamore, III.
notification) 25,695 shares of common
stock. Price—At par ($10 per share). Proceeds—To be

Cross-Bow Uranium Corp.
stock.

terest.

To

—

—

ceeds

Del-Valley Corp.
13 (letter of notification) $235,000 of
junior Ilea
due in two years from date of issue without in¬

bonds

byproducts, notably furfural.
Underwriters
William
R.
Staats & Co., Los Angeles,
Calif.; Carl M. Loeb,
Rhoades & Co., New York, N. Y., and The Bankers Bond
Co., Louisville, Ky.

—

mon

amendment

build

* Cooper-Jarrett Inc.

41

Dec.

debentures and 50 shares of stock. Price—To be
supplied

Auchincloss, Parker & Redpath, all of New York.

Aug. 29

(197)

City, Utah

Aug. 15 (letter of notification) 15,000,000 shares of com¬
stock.
Price—At par (one cent per share).
Pro¬
ceeds—For expenses incident to
mining activities. Offica
—15 Exchange Place, Salt Lake
City, Utah. Underwriter
mon

Underwriter—The Western Trader & Investor, Salt Lake

City, Utah.

—Western States Investment

Co.,

same

city.

Dix Uranium

NEW
January 13
Lear,

ISSUE

General Telephone Co. of California

Inc.

(To

.Debentures

Ohio Water
(Offering

CALENDAR

(Friday)

(Smith, Barney & Co. and William R. Staats

to

Service

Co.)

Co

Co.)

12,157

January 16

by

Blair

F.

Brooks & Co.,

Inc.;

and

Cuba

Allen

&

Co.;

P.

shares /

//^Y.

Royal

January 17

Atlantic

Class A
&

Himme)

City

be

to

invited)

Pierce,

& Beane; and White,
10,200,000 shares

Incorporated Mortgage Investors
(Federal

Investment

Co.)

Weld

Metals

Blyth & Co., Inc.)

Debs.

Reiter

J.

(Bids

Com.

&

Co.)

chasers of

Maine

W.

Brooks

&

underwritten

Dallas Power &

by

D.

$10,000,000

Inc.)

~

;

i

&

Co.,

'

*

Southern

Pierce

&

stockholders)

Chemical

(Doolittle

&

Bonds
$25,000,000

ing, San Juan, Puerto Rico.

.Preferred

invited)

Co.)

(Ga.)

Dec.

(Thursday)

Southern Indiana Gas & Electric Co
(Offering

stockholders—may

to

Barney

Co.)

&

be

Common

underwritten

83,030

February

27

Kansas Gas & Electric

Common

(Bid3 11

$297,000

(Monday)

Co..

a,m.

—Bonds

EST)

(Monday)

Atlas Plywood Corp
(Van

.-Debentures

Alslyne,

Noel

&

Cumberland Corp.
(William R,

Staats

and

The

(Bids 11

$7,000,000

Co.)

&

Co.;

Carl M.
Bond

Loeb,

Co.)

Rhoades

&

Texas Electric Service
(Bids

Co.;

January 24

L-O-F Glass

(Tuesday)

Green

and Kidder, Peabody & Co.)

(A. P.) Fire Brick Co

$50,000,000

(Bids

Union

Securities

Corp.)

'

'

Textron American Inc._____^__________Debentures
Co.

Incorporated) $30,000,000

,

^January 25 -;FWednesday$"V';»

Ry._2__!;_,_I_Equip.

(Bids

noon

EST). $4,680,000

Northern Pacific Ry:_
(Bids

\j

t

i

i
*H*

invited)

-

Co

January 27
Uranium

$4,000,000

-

*'♦

(Bids

be

to

invited)
••

-

-1

$4,000,000

"3

•

,v

March 6

(Tuesday)

Telephone Co. of Pennsylvania

(Friday)

March

Common

15

Debens.

$35,000,000

(Bids

to

invited)

January 30

(Monday)

(Loewi

Clark

Oil

&

&

Co.)

$1,750,000

Refining Corp....
(Loewi

&

$14,000,000

&

shares

125,000




'

k

Common

.

Co.)

March 27

(Bids

to

be

jj

(Tuesday)

New York Telephone Co
invited)

....Bonds
$55,000,000

■'

*'

Common

Co.T 25,000

Cooper-Jarrett, Inc.
(Allen

»

Preferred

shares

;

,

Power

.'111—._l

Co

(Bids to

be invited)

$16,000,000

their

J.

Educational and

respective par
Underwriters—

Rhodes.

Co-Operative Union of

spectively). Proceeds — To be loaned to or invested in
subsidiaries; to retire outstanding indebtedness;
and to expand the Union's educational activities. Under¬
writer—None. Debentures to be sold by salesmen, deal¬
ers and agents, and by officers, directors and employees
of the Union, which is often referred to as Nctttftftal
Farmers Union.

•

.

^ Fine Art? Acceptance Corp.
x\Jan. 3 (letter of notification)' 20,000 shares of common
stock (par $10). Price—$11.50 per share. Proceeds—For
the purchase of a larger amount of instalment contracts.
Office—2901 Philadelphia Saving Fund Building, Phila¬
delphia 7,|Pa. Underwriter—Woodcock, Hess & Co., Inc.
and Boenning & Co., both of Philadelphia, Pa.
.

Dec. 21

Federal

Life

Co., Baltimore, Md.

of capital stock (par $10) to
subscription by class A and class B stock¬

holders of The Finance Co. of America at Baltimore on
a

l-for-5 basis.

Price—$20.50 per share.

Proceeds—For

capital and surplus account. Underwriter — None, but
Louis Eliasberg, Louis Eliasberg, Ji4:, and Richard A.
(President)

unsubscribed shares.

.Bonds

Insurance

_

filed 20,000 shares

Eliasberg

r/..r ' * March 29 (Thursday)

Georgia

At

America, Denver, Colo.
filed $2,300,000 of registered debentures, series
A; $500,000 of registered savings debentures, series B;
and $1,200,000 of registered savings debentures, series
C. Price—At par (in units of $100, $125 and $120, re¬

be offered for

Clark^Oil & Refining Corp

—

23

First
..Bonds

be

McNelis and John

Farmer's

(Thursday)

Alabama Power Co

(Offering to stockholders—no underwriting) 1,306,209 shares

'
.:

.

Bell

Price

;•

»

*

$5,500,000

Corp

$1,000,000

-_^___.2^..«-^..^Bonds

(Bids to be invited)

Lisbon

Common

—

Investing Corp.)

dividends.

Proceeds—For working capital.

Union

(Thursday)

(Bids to be invited)

s.

Trust Ctfs.
-

Common

invited)

//
■Mississippi Power Co._^--_^L_>m-t4.-«-Preferred

ii.i.i.Equip. Trust Ctfs.

to be

(General

Mississippi Power
T

Central of Georgia

1

Colohoma Uranium, Inc

•

$1,250,000

•

(Blair &

be

shares

.....Debentures

and

Common
stockholders)

to

to

insurance

Nov.

(Wednesday)

States Power Co...

March

Co

(Johnston, Lemon & Co.

$10,000,000

Co

(Offering

Northern

....Common

.

(Blyth & Co., Inc. and Shields & Co.) 245,007

Southern Oxygen

Fibers

Notes

common

(voting)
(par 35 cents); and 300,000 shares of class
(non-voting) common stock i(par 50 cents).. Of these
shares, 40,000 are to be offered to officers, directors and
employees of the company. Class A, B and C stock will
also be issued to policyholders of the Farm & Home
Insurance Co. in exchange for the assignment of their

Bonds

$990,000

Commercial Credit Corp.___

(voting)

stock

common

James E.

(Tuesday)

invited)

be

to

240,000 shares of class A

(par $25 cents); 214,285 shares of class B

values.

Co..

February 29

(The First Boston Corp.

200,000 shares

February 23

$6,000,000

Debentures & Common

Bankers

Common

EST)

a.m.

filed

1

stock

C

Kansas Gas & Electric Co..

January 23

by Smith,

shares

Com.

$3,000,000

Corp

Underwriter—None.

Farm & Home Loan & Discount Co.,

$9,000,000

Phoenix, Ariz.

92,636 shares

National Bank

to

Stevens

$212,500

Co

be

to

February 23
Common

(Offering

Co.)

invited)

Electric
(Bids

(Friday)

(Offering to stockholders—no underwriting)

&

&

29

common

F

B. S. F. Co.—
Citizens

Pennsylvania

shares

225,000

Fuller

D.

(Bids to be

Common

San Juan, Puerto Rico
(letter of notification) 2,980 shares of class A
stock.Price—At par ($100 per share).
Pro¬
ceeds—For machinery and equipment; installation
costs;
wiring and air-conditioning of building; and working
capital. Office—Room 303, New York Dept. Store Build¬

$10,000,000

Pennsylvania Electric Co..

Common

$1,125,000

Inc.)
"

January 20

>

ic Enflo Corp.,

Dec.

Bonds

invited)

be

to

Common
(S.

*

Biauner

—For general corporate purposes. Otfice—M
Street, be¬
low Erie Ave., Philadelphia, Pa.
Underwriter—S. D.
Fuller & Co., New York, N. Y.

...Bonds

Light Co

(Bids

(Thursday)

Silvray Lighting, Inc
(Milton

stock

-

(Wednesday)

February 15

100,000 shares

Co.,

Corp., Philadelphia, Pa. (2/15)
(letter of notification) 100,000 shares of common
(par 25 cents). Price—$2.12^2 per share. Proceeds

Dec. 28

* • r';•

$291,250

Fidelity Life Insurance Co
(P.

stock).

Elco

Common

$2,250,000

(Tuesday)

EST)

Funds are to be held in escrow (if
is received, funds will be returned to pur¬

not enough

(Monday)

>5'/' ""hffi.

noon

officers of company.

$40,000,000

Elco Corp.

January 19

acquire title

shopping center in Lansing, Mich., from builder of
Underwriter—None, offering to be made through

center.

..Preferred

7''.',1;

Uranium Co.

Edgemont Shopping Center, Inc., Chicago, III.
75,000 shares

(Monday)

February 14

Co.)

&

Common
be

.■■

&

Oct. 14 filed 6,000 shares of class A common stock. Price*
—At par ($100 per share).
Proceeds—To

Common

__

Barney & Co.)

Co

(M.

/,•

South, Salt Lake City,
Brokerage, Inc.. Las

State

—Philip Gordon & Co., Inc., New York.

Central Power & Light Co

Seattle-First National Bank
(Offering to stocknoiders—to

shares

Co

5th

(letter of notification) 1,500,000 shares of com¬
mon
stock (par one cent).
Price—20 cents per share.
Proceeds—For expenses incident to
drilling for oil and
gas. Office—Colorado Bldg., Denver, Colo. Underwriter

$300,000

Western Greyhound Racing, Inc

Class A Common

Fenner

East Basin Oil

(Wednesday)

Electric

East

Oct. 25

Common

400,000

Office—214

Underwriter—Valley

Vegas, Nev.

by

Common
EST)

a.m.

February 13

$7,000,000

(Blyth & Co., Inc.; The First Boston Corp.; Goldman, Sachs
&
Co.;
Kuhn,
Loeb
&
Co.;
Lehman
Brothers;
Merrill

Lynch,

underwritten

Co.)

(Dillon, Read & Co. Inc. and Reynolds & Co.)

Chicago, Burlington & Quincy RR._Equip. Tr. Ctfs.
iBids

Utah.

to

(Wednesday)

Ford Motor Co

be

&

February 6

$486,288

Reynolds

January 13

activities.

Debentures

Co

11

Common
Inc.)

Co.,

Co
$25,000,000

Common
Loeb

(Union Securities Corp. and Smith,

$750,000

Southwest Gas Corp..
Cali.ornia

invited)

February 1

(Tuesday)

Signature Loan Co., Inc
Sttauss

(Tuesday)

(Franklin Securities Co.)

(Bids

Eagle Rock Uranium Co., Salt Lake City, Utah
Sept. 19 (letter of notification) 30,000,000 shares of non¬
assessable common stock. Price—At par
(one cent per
share). Proceeds — For expenses incident to mining

$1,102,500

stocknolders—to

Texas Utilities

$300,000

by

Debens. & Common

Co.)

Southern Mining & Milling Co

Class A Common
Corp.)

underwritten

Corp

to

U. S. Automatic Machinery & Chemical
(Columbia Securities

be

Kuhn,

$2,000,000

Corp.

&

Telephone

to

Bonds

(Allen & Co.)

(First

Bell

McBee

(Offering

(Republic of)

(Simon,

Barth

(Bids

W.

•.

Preferred

be

$14,377,240

January 31
Northwestern

Auchincloss, Parker & Redpath)

263,771.

■

Templeton)

(J.

(Monday)
by

other—to

excnange

Western States Refining Co

Claybaugh

shares

to stockholders—underwritten

•

under

Webber, Jackson & Curtis and Mitchum, Jones
&

Continental Copper & Steel Industries, Inc.__Com.
(Offering

offered

be

Paine,

$3,000,000

Common

stockholders—underwritten
&

&

Corp., Provo, Utah
Aug. 10 (letter of notification) 6,000,000 shares of non¬
assessable capital stock.
Price—At par (five cents per
6hare).
Proceeds—For mining expenses.
Office—293
North University Ave.,
Provo, Utah.
Underwriter —
Weber Investment Co., Provo, Utah.

are
j

committed

"V

to

purchase

any

*
_

Continued

on

page

42

...

4

42

(198)

The Commercial and Financial Chronicle...
Thursday,

Continued from page

Green

41

(A.

P.)

Fire

Brick Co.

(1/24)

International Metals Corp.

Dec. 28 filed

it Fleetwood Motel Corp., Philadelphia, Pa.
5 (letter of notification) 24,550 shares of class A
common stock and 4,910 shares of class B common stock
(both par $1) to be sold in units of one share of class B
Jan.

five shares of class A

and

common

Price—$6

common.

unit.

Proceeds—To be applied toward purchase of
estate, and the erection of the building, furnishings
and working capital. Office—Suite 808, 121 South Broad
St., Philadelphia 7, Pa. Underwriter—Woodcock, Hess &
Co., Inc., Philadelphia, Pa.
per

real

Ford

Motor Co.,

Dec. 21 filed 10,200,000 shares of common stock (par $5).
Price—To be supplied by amendment (expected to be
around

$70

per

Proceeds—To Ford Foundation.

share).

Underwriters—Blyth & Co., Inc.; The First Boston Corp.;
Goldman, Sachs & Co.; Kuhn, Loeb & Co.; Lehman
Brothers; Merrill Lynch, Pierce, Fenner & Beane; and
White, Weld & Co.
Dec.

21

be

to

filed

offered

800,000 shares of common stock (par $5)
pursuant to the company's Savings and

Co., Detroit, Mich.
Dec. 29 filed 2,160,600 shares of common stock (par
$5),
which have been or may be issued under options
granted
by company to certain of its key employees pursuant to
its Employees' Stock Option Plan
(adopted Jan. 30,1953).
will be used for general corpo¬

rate purposes.

Dec. 29 filed 900,000 shares of common stock
which are to be offered to such key

(par $5),

employees of

com¬

its subsidiaries as in the future may be granted
options to purchase such shares pursuant to the 1955
Stock Option Plan of the
company.
Proceeds—For gen¬
eral corporate purposes.
pany and

Fort Pitt

Packaging International, Inc.

June 30 filed 300,000 shares of common stock
(par 10C),
of which 250,000 shares of for account of
company and

60,000 shares of five selling stockholders. Price—$3 per
chare. Proceeds—For working
capital; for exploitation
of "Totosave" system; and for
marketing of "TropicRay" infra-red space heater. Office
Pittsburgh, Pa.
Underwriter—Barrett Herrick & Co., Inc., New York.
—

tAc Four Seasons Enterprises, Inc., Las Vegas, Nev.
Jan. 3

(letter of notification) 59,800 shares of preferred
stock (par $5) and 59,800 shares of common stock
(par
one

cent).

Price

To

be

offered

in

units

of

share

one

Dec.

writer—Gearhart &

30

(letter of notification) 24,000 shares of capital
(par $5) to be offered first to stockholders; then
policyholders and the public. Price—$10 per share. Pro¬

stock

Baton

For advances

Underwriter—None.
Fremont Uranium Co., Salt Lake
City, Utah
Aug. 1 (letter of notification) 15,000,000 shares of
stock.

Price—At

com¬

(one cent per share).

par

Pro¬

ceeds—For mining expenses. Office—515
Deseret
Salt Lake City, Utah. Underwriter — Moab

Bldg.,
Brokerage4

Co., Western States Investment Co., Potter Investment
Co., Mid-America Securities, Inc. of Utah, and CashinEmery, Inc., all of Salt Lake City, Utah.
Frontier Assurance
Dec.

2

(letter

Co., Phoenix, Ariz.
notification) 2,000 shares of class E
stock (par $25), to be offered for sub¬

of

voting common
scription by holders of class A common stock. Price—
$36.50 per share. Proceeds
For capital and
surplus
Office—4143 N 19th Ave.,
Phoenix, Ariz. Underwriter—
—

None;

9

filed

ment, etc.
N. Y.

9

types of Plans for the
Knickerbocker Fund.

accumulation
;

of

shares

three

of

The

f

ceeds—To purchase certain working or leasehold inter¬
ests in oil and gas interests.
Underwriter—None.
Gulf

Aug. 1

tal stock

(par five cents). Price — 25 cents
Proceeds—For oil and mining expenses.

share
Underwriter—

Empire Securities Corp., Las Vegas, Nev.

per

,

★ Gas Hills Mining and Oil, Inc.
Jan. 4 (letter of
notification) 1,200,000 shares of com¬
mon stock (par five
cents).. Price
25 cents per share.
—

Proceeds—For

expenses

incident

Office—Kemmerer, Wyo.
& Co.,

to

mining operations.

Underwriter—Philip

Gordon

Inc., New York 6, N. Y.

General

Public

Service Corp.
Dec. 12 filed 1,652,176 shares of
common stock
(par 100)
being offered for subscription by stockholders of
record
Jan. 4, 1956, at the rate of one
new

shares then held,
rights will expire
Proceeds
folio.

—

with

an

Jan.

on

Price—$4.37 V2

two

privilege;
per

share.

To add investments in the
company's port¬

Underwriter—Stone

New York.

share for each

oversubscription

18.

&

Webster

Securities

Corp.

/

.

★ Golden Dawn Uranium
Corp., Buena Vista, Colo.
Dec 27 (letter of
notification) 3,000,000 shares of capital
stock (par five
cents). Price—10 cents
ceeds

—

For

per

mining

expenses.

share.

Underwriter

—

Securities Co., Provo, Utah.

ceeds—For mining expenses.

Bldg., Grand Junction, Colo.

per

Office

—

of common

(par $1).

Pro¬

Uranium Center

Underwriter—None.

Great Southwest Fire
Insurance Co.
Dec. 21 (letter of
notification) 187,500 shares of
stock

Pro¬

Bel-Air

share

Price—$1.60

per

share.

common

Proceeds—To
casualty insurance.
Office—4450 N. Central,
Phoenix, Ariz. Underwriter—
be

used

for

expenses

re.

None.




fire

and

filed

1, 1966.

ceeds—For

Gas

$600,000 of 10-year 5% debentures due
Price—100 % of principal amount.
Pro¬

construction

costs.

thereunder, Gulf

may

at its option accept all shares of

deposited.

so

&

Co., New York.
•«:

•

.

•

v:

••

•/.

•

(by amendment) 1,000,000 shares of benefi¬

cial interest in

the

Trust.

Price—At market.

Proceeds

—For investment.
"

★r Investors Stock Fund, Inc., Minneapolis, Minn.
Jan. 6 filed (by amendment) an additional
100,000 shares
of capital stock. Price—At market.
Proceeds—For in¬
vestment.

"4

-

Industrial

&

Mineral

purposes.

New York, N.
"Isras"

Underwriter

—

'

.

Development

Corp*
(par $25).

Oct. 5 filed 200,000 shares of common stock
Price—$27.50 per share. Proceeds—For general
rate

Underwriter—None.

—

;•>

•

Israel

Gulf for each five shares of Warren.
If, prior to the
expiration of the offer, less than 1,753,133 Warren shares
(90%) but at least 1,558,340 shares (80%) are deposited

Warren

Office

Co., Inc. for purchase of equip¬
369-375 DeKalb Ave., Brooklyn 5,

Underwriter—Kamen
,■

|

Arliss

to

★r Investment Trust of Boston

Corp., New Orleans, La.

A* Gulf Oil Corp., Pittsburgh, Pa.
Jan. 10 filed 1,534,446 shares of capital stock (par
$25)
to be offered in exchange for shares of common stock
of Warren Petroleum Corp. in the ratio of four shares of

Israel

corpo¬

Securities

Corp., /

Y.

Israel-Rassco

Investment

Sept. 28 filed 9,000 ordinary shares.

Co., Ltd.

Price—At par (100

Israel pounds each, or about $55 in U. S.
funds), payable
in State of Israel Independence Issue Bonds
only. Office
—Tel Aviv, Israel.
Underwriter—Rassco Israel

Corp* ; /

New York.

★ Jeb

•>.*,

.

■<

.1

■

;

*■?',£

>...••

v'•

'

Industries, Los Angeles, Calif.

*

Dec. 28

-

(letter of notification) 40,000 shares of common
Price—At par ($4 per share); Proceeds—For pay¬
ment of accounts payable; increase in
inventory; addi¬
tional working capital, etc.
Office — 4641

Half Moon Uranium Corp., Ogdenr Utah
Aug. 10 (letter of notification) 8,000,000 shares of capital
stock.
Price—At par (two cents per share).
Proceedi

stock.

—For mining expenses. Office—E-17 Army
Way, Ogden
Underwriter—United Intermountain Brokerage

Blvd., Los Angeles 27, Calif. Underwriter
Dofflemyre & Co., Los Angeles, Calif.: '

Utah.

Corp., Ogden, Utah.
Hammermill Paper Co., Erie, Pa.
Dec. 20 filed 166,400 shares of common stock
(par $2.50)
to be offered in exchange for- shares of
capital stock
of Watervliet Paper Co. in the-.ratio of- 26
shares of

Hollywood

common stock for each 25 shares of Water¬
This offer is subject to acceptance
by hold¬
of at least 128,000 shares
(80% of

ers

outstanding Water¬

vliet stock).

Underwriter—None.

Helio Aircraft

150,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—For im¬
provements, research, development and working capital.
Office—Metropolitan Airport, Canton (Norwood P. O.),
Mass.
Underwriter—To be supplied by amendment.

Ar Hometrust Corp., Inc., Montgomery, Ala.
;
5 filed 125,000 shares of common stock
(par $1)'.,
Price—$5 per share. ^Proceeds1—To expand operations

Jan.
of

subsidiary and increase investment therein.

Under¬

1

Jurassic Minerals, Inc., Cortez, Colo.
assessable

common

share.

per

Dec. 29 filed

Marache,

/

*

Colo.

stock (par one cent).

Proceeds—For
Office

Underwriter

—

no&~

Price—10 cents

incident

to

mining
Cortex,
Bay Securities Corp., New York*

326

—

<

'

-

Aug. 26 (letter of notification) 2,855,000 shares of

activities.

Corp., Canton, Mass.

—

★ Jontex, Inc., Reno, Nevada
Dec. 27 (letter of notification)
1,500,000 shares of capital stock (par five
cents). Price — 20 cents per share.
Proceeds—For mining expenses. Office—139 N. Virginia
St., Reno, Nevada.' Underwriter—None.

Hammermill
vliet stock.

expenses

West

Montezuma

St.,

New York.
Kendon

Electronics

Co.,

Inc.

Oct. 27 (letter of notification) 60,000 shares of common
stock (par 10 cents). Price—40 cents per share. Proceeds
—To Nicholas J. Papadakos, the selling stockholder.

Of¬

fice—129 Pierrepont St., Brooklyn, N. Y. Underwriter—
20th Century Pioneer Securities Co., New York.
.
"

ic King Solomon Mining Co., Inc.
/ 1,
(letter of notification) 20,000 shares of common
stock (par $1).
Price—$2.70 per share. Proceeds—For
mining expenses. Office—c/o Robert Stanley, Pres., 519
Dec. 27

writer—None.

.

★ Household Gas Service, Inc. * •
Jan. 6 (letter of
notification) 920 shares of 6% cumula¬

Carson

tive preferred stock.

Price—At par ($25 per share) and
accrued dividends. Proceeds—To
repay indebtedness and
for working capital;
Office — Clinton, N. Y.
Under¬
writer—None.

.

St., Las Vegas, Nevada.

Underwriter—None.

^ Lancer Uranium Corp., Los Angeles, Calif.
Dec. 27 (letter of notification) 3,000,000 shares of
mon

stock.

Price—At par (10 cents per share).

com¬

Proceeds

—For

Hunt Uranium
Corp., Green River, Utah
Aug. 22 (letter of notification) 1,200,000 shares of
stock.

derwriter

mining expenses. Office—8327 Beverly Road, Los
Angeles 38, Calif. Underwriter—None.

com¬

Price—At

par
(25 cents per share). Pro¬
incident to mining activities. Un¬
Elmer K. Aagaard, 323 Newhouse

expenses

—

Salt Lake

Bldg*

City, Utah.

Ideal-Aerosmith, Inc., Hawthorne, Calif.
Dec.

16

(letter of notification) 150,000 shares of capital
(par $1). Price — $2 per share. Proceeds
For

stock

—

equipment, machinery, inventory, etc. Office—12909 So.
Cerise Ave.,
Hawthorne, Calif. Underwriter—Samuel B.
Franklin & Co., Los
Angeles, Calif.
•

Incorporated Mortgage Investors

(1/18)

Dec. 7

(letter of notification) $233,000 of 8% registered
debentures, due Jan. 1, 1976, and 58,250 shares of com¬

mon

stock

Lander Valley Uranium & Oil Corp.
Aug. 15 (letter of notification) 3,000,000 shares of common stock
(par two cents)." Price—10 cents per share.
Proceeds—For expenses incident to mining activities.

>

v

Office—c/o Warren E. Morgan, President, 1705 East First \
South, Salt Lake City, Utah. Underwriter—Empire Se¬
curities Corp., Las Vegas, Nev.
:s:
.

K.

★

Lear, Inc., Santa Monica, Calif.

(1/13)
$3,000,000 of subordinated debentures due
Dec. 1, 1970 (convertible through Nov. 30, 1965). Price
—To be supplied by amendment. Proceeds—For general '
corporate purposes.
Underwriters — Smith, Barney &
Co., New York, and William R. Staats & Co., Los An¬
geles, Calif.
Dec. 21

filed

,

.

(par $1) to be offered in units of one $100
debenture and 25 shares of stock.
Price—$125 per unit.
Proceeds—To be invested in the
mortgage investment

★ Leatherhide Industries, Inc..
;
Jan. 5 (letter of notification) 150,000 shares of common
stock (par 25 cents).
Price—$2 per share.
Proceeds—

portfolio.^ Office—1012 H St., N." W., Washington,

For

Underwriter—Federal Investment Co.,
Indian

Monument

Uranium

same

Mining

D. C.

city.

Corp.

Sept. 6 (letter of notification). 3,000,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share
Proceeds

—

For

expenses

incident to mining activities

Office—205 Byington Building,
Reno, Nev. Underwriter
—Richard L. Dineley, same address.
Inland

Dec.
mon

Mineral

Resources

12

Corp.,

N. Y.
600,000 shares of

(letter of notification)
com¬
(par one cent).
Price—50 cents per share.
Proceeds—For mining expenses. Office—42
Broadway,
New York, N. Y. Underwriter—G.
F. Rothschild &

convert¬

ible preferred stock
(par $5).

amendment.

holders of record July 21, 1955 on the basis of one new
share for each four shares held; rights to expire 45
days
the commencement of the offering, after1 which

Price—To be supplied by
Proceeds—For general corporate
purposes.

Underwriter—Alexander Watt

& Co., Ltd., New York.

International Investors
Inc., New York
Aug. 23 filed 200,000 shares of capital stock

None.

,

Lisbon

(par $1);

St., New York, N. Y.

i

Uranium

.

,

Corp.

(1/27)

Dec. 26 filed 1,306,209 shares of common stock
(par 150)
to be offered for subscription by common stockholders
of record Jan.

27, 1956, at the rate of three

for each ten shares held.
To

repay

advances

by

new

Price—$4 per share.

Atlas

Corp.

of

shares

Proceeds

approximately

$4,039,000, which has
to

Price—At market. Proceeds—For
investment. .Business
—To invest in foreign securities of the
free world out¬
side of the United States.
Underwriter—I. I. I. Securi¬
ties Corp., 76 Beaver

;

unsold shares will be offered to public. Price—$8.75
per'
share to stockholders; $10 per share to public. Proceeds'*'
—For expansion and working capital.
Underwriter— *

......

Insulated Circuits,
Inc., Belleville, N. J.
Nov. 10 filed 100,000 shares of
6% cumulative

t

Life Underwriters Insurance Co., Shreveport, La.
Sept. 26 filed 100,000 shares of common stock (par 25 <
cents) to be offered for subscription by present stockr

Co.,

address.

j

equipment, payment of loans and obligations and
working capital, etc.
Office—545 Fifth Ave., New York, *
17, N. Y.
Underwriter—None.

from

stock

same

★ Golden West Gil &
Uranium, Inc.
Jan 6 (letter of
notification) 3,000,000 shares
stock (par five
cents). Price—10 cents

Natural

30

""

;

Jam 9 filed

Gulf Coast Leaseholds, Inc.,
Houston, Texas
Sept. 14 filed $2,000,000 of 5% sinking fund convertible
debentures due Sept. 1, 1965 to be sold to Brandel Trust
Price—$1,825,000, plus accrued interest of $29,632. Pro¬

Gas Hills

Mining & Oil, Inc., Kemmerer, Wyo.
(letter of notification) 1,000,000 shares of
capi¬

Mutual Fund Inc., New York
(by amendment) 140,000 shares of common
$1). Price—At market. Proceeds—For invest-

filed

ceeds—For

$15,000,000 of total payments under

Otis, Inc., New York.

Plastic

Industries Corp.
(letter of notification) 150,000 shares of common.
(par 10 cents).
Price—$2 per share. Proceeds—

ic Guardian

mon

Ar Future Planning Corp., New York
Jan.

International

working capital. Address—P. O. Box 2231,
Rouge, La. Underwriter—None.

stock (par
ment.

each.

$5.01 per unit. Proceeds — For construction of
trailer space; improvements for trailer sales
lot; con¬
struction
of
market
building, and working capital.

,

Oct. 12

ceeds—For

stock

—

mon

Mineros Mexicanos, S. A., Mexican subsidiary,
discharge note. Office — Houston, Tex. Under¬

cursos

and to

Jan.
Motor

or

4 filed 400,000 shares of common stock
(par 10,
cents). Price—$1 per share. Proceeds—To finance ex¬
ploration and development of mining properties of Re-

it Guaranty Income Life Insurance Co.

Dec.

derwriter—None.

Proceeds—Have been

—

Oct.

selling stockholders. Office—Mexico, Mo. Underwriters
—Blyth & Co., Inc., and Shields & Co., both of New York.

Stock Investment Program for Salaried Employees. Un¬

Ford

245,007 shares cf common stock (par $5).
To be supplied by amendment.
Proceeds —To

Jan.

(1/18)

Detroit, Mich.

Price

January 12, 1956

or will be used to acquire option
purchase the so-called Barrett claims and pay balance

of purchase
and

for

City, Utah.
subsidiary
scribed

price; for exploration and drilling expenses,

other

corporate

purposes.

Office

—

Salt

Lake

Underwriter—None, but Wasatch Corp., a
of Atlas Corp., will purchase any unsub¬

shares.

A

Volume 183

Number 5498... The Commercial
and Financial Chronicle

(199)
•

Lithium

Oct.

Developments, Inc., Cleveland, Ohio

17

For mining
expenses.
Office
Denver, Colo. Underwriter

filed 600,000 shares of
common stock
(par 10
Price—$1 per share. Proceeds—For
exploration
and development
costs, etc. Underwriter—George Searight, New York City. Statement withdrawn.

cents).

Little

Mac

same

•

Sept. 12 (letter of notification)
3,000,000 shares

of

tal stock.

capi¬

Oct.

6

(letter

of

&

Oil

notification)

Office

•

Nov.

10

—

capital

Proceeds—For

Portland, Me.

Brooks & Co., Inc., New York.

of

company

and

Denver,

stock

(par $10).

for

606

Underwriter—None.

Office—Professional

derwriter—Shelley,

;.

it Quarterly Distribution Shares, Inc.
4 filed
300,000 shares of common stock

Price—At market.

ac¬

Dec.

scribed

of

lithographed labels for cans, bottles, boxes, etc. Office
Depot St., Bedford, Va. Underwriter—Scott,
Horner & Mason, Inc.,
Lynchburg, Va.

cents

per

com¬

it Pierce & Stevens Chemical Corp. (1/20)
6 (letter of
notification) 27,000 shares of class B
(non-voting) capital stock (par $3.33V3).
Price — $11

share.

Jan.

mining

offered

Price—At par ($25

5% pre¬
Price—At par ($50 per
share). Proceeds
—To reduce short term
indebtedness and for construction
program. Office—35 Park Avenue
East,
stock/

&

per

Underwriter—None.

Allegheny County, Pa.

Mansfield, Ohio.

and

Office—Gibsonia,

it Northwestern Bell Telephone Co.
(1/31)
Jan. 6 filed
$25,000,000 of 40-year debentures due Feb.
1,
1996.
Proceeds

'Dec. 27

Telephone

Underwriter—None.

—

(letter of notification) 50,000 shares of class A
common stock.
Price—At par ($1 per
share). Proceeds
—For drilling and
purchase of oil wells. Office—2111
North Charles St., Baltimore
18, Md.
Underwriter—

it Mays

St., Brooklyn, N. Y.

Under¬

•

Co.,

.

Uranium & Oil Co., Salt Lake
City,
(letter of notification) 5,500,000 shares

Utah

of

per

capital stock (par
share. Proceeds

one

For

—

cent).

—

Price

expenses

non¬

Five

incident to

mining activities.^ Office—605 Judge
Bldg., Salt Lake
.City, Utah. Underwriter—Skyline
Securities, Inc., Den¬
ver, ColO.
V:V ' '•
'

Mohawk; Silica Co., Cincinnati, Ohio
Oct. 3 (letter of
notification) 3,000 shares of 8%
lative preferred stock.

Price

Ohio. .Underwriter
Ohio.

—

cumu¬

At par

W. E. Hutton

&

Ave., Cincinnati,
Co., Cincinnati,

"•

'>7

it Monarch Lumber Co.,
Minneapolis, Minn,
i
] .
5 (letter of
notification) $28,000 principal amount

of 6%

debentures to be offered

Price—At par.
government securities. Office
Line Bldg.,

—

Dec. 19

expire

Blair F.

to yard managers and
Proceeds—To purchase

900 First National-Soo

Minneapolis, Minn. Underwriter—None.'

:■*

Monitor Exploration
Co., Denver, Colo.
Dec. 9 (letter of
notification) 300,000 shares of common
stock (par five
cents). Price—$ljper share. Proceeds--For mining expenses.
Office—623 First National Bank
Building, Denver 2, Colo.
Underwriter
Globe Secu¬
rities Corp.,
Jersey City, N. J.
—

• Morrison Cafeterias
Consolidated, Inc.Jan. 3 (letter of
notification) 10,000 shares of common
stock
(par $5) to >be offered to
employees under the

Employees Stock Purchase Plan.
Price—$12 per share.
Proceeds—For working capital. Address—P. O.
Box 309,
Mobile, Ala. Underwriter—None.
Vernon Mining &
Development Co.
|
Nov. 16 (letter of
notification) 300,000 shares of com¬
mon stock.
Price—At par ($1 per
share). Proceeds—

mining expenses.
Office—422
Continental Bank
Bldg., Salt Lake City, Utah. Underwriter
Ackerson—

same

Co.,

701

city.

Continental

Bank

Bldg.,

£ National Lithium Corp.,
Denver, Colo.
(letter of notification) 300,000 shares of
commpn
stock (par one
cent). Price—$1 per share. Proceeds—
Dec. 27




For

construction

program.

Underwriter—

Claybaugh & Co., Harrisburg, Pa.

Outboard, Marine

&

the basis of one new share
for each 10 shares
held (rights to expire on Jan.
23); the remaining 100,000
shares were on Jan. 5 sold to
the public for the
ac¬

count of two
per

j

selling stockholders. Price—To stockholders
share; and to public $42.50 per share. Pro¬

ceeds—For

capital

expenditures.

Stanley & Co., New York.

Underwriter—Morgan

Pacific International Metals &
Uranium, Inc.
Aug. 12 (letter of notification) 12,000,000 shares of com¬
stock. Price—At par (one cent
per share).
Pro¬
ceeds—For expenses incident to
mining activities. Office
mon

—419 Judge Bldg., Salt Lake
City, Utah.

Underwriter—

Guss Securities Co., Salt Lake
City, Utah.
Paria

Oct.

17

mon

Uranium & Oil Corp.

'(letter

stock

of

—

Penn Precision
Nov.

com¬

Price—10 cents per share.

For

mining expenses. Office
Bldg., Salt Lake City, Utah. Underwriter
States Investment
Co., Tulsa, Okla.
—

Newhouse

—

Western

Products, Inc., Reading, Pa.

3

(letter of notification) 3,857 shares of common
(no par), of which 2,000 shares are to be offered
subscription by existing stockholders at $12 per
share, and 1,857 shares to non-stockholders who are resi¬
stock
for

dents of

Pennsylvania

purchase of mill.
Pa.

at

Office

Underwriter—None.

$14
—

per

501

and

development; and

Underwriter

North

—

Co., Tulsa, Okla.

Washington, D. C.

preferred

stock

Price—$6.75

and

one-half

unit.

per

purposes. Underwriter

Chicago, 111.

share

Proceeds—For
—

of

stock.

common

general

corporate

Straus, Blosser & McDowell,

•

it Raytone Screen Corp.
9

(letter of notification) 100,000 shares of common
(par 10 cents).
Price—$3 per share.
Proceeds—
To pay current liabilities and for
working capital. Busi¬
ness—Manufacture and sale of motion
picture theatre
screens and distribution of screen
paint.
Office —165
Clermont Ave., Brooklyn 5, N. Y.
Underwriter—A. J.
Grayson & Co., Inc., Hempstead and New
York, N. Y.
„

Reno
Dec.

Hacienda, Inc., Inglewood, Calif.

19 filed

4,000,000 shares of

At par ($1 per share).

stock.

common

Price—

Proceeds—To purchase real prop¬

erty, for construction of buildings and other facilities
and for general corporate
purposes. Underwriter—Wil¬
son & Bayley Investment Co.
Republic Benefit Insurance Co.,
Tucson, Ariz.
Sept. 30 filed 150,000 units in a dividend trust and stock
procurement agreement to be offered to certain mem¬
bers of the general public who are
acceptable applicants

and who

are

to become active

Price—$2

porate purposes.
Leo
tees.

per

unit.

policyholders in the

Proceeds—For

com¬

general

Underwriter—None; to be

cor¬

ofitred

Rich, Robert Kissel and Sidney M. Gilberg,

by
Trus¬

as

Reynolds Mining & Development Corp.
Nov.

22

filed

1,500,000 shares of common stock (par
Price—50 cents per share.
Proceeds—For

cent).

working capital and mining expenses. Office
Utah.

Underwriter

D. C.

The Matthew

—

Moab,
Corp., Washington,
—

■

Riddle

Airlines, Inc., Miami, Fla.
20 filed 967,500 shares of common stock
(par 10
cents) to be offered for subscription by stockholders at
Dec.

the

rate

(with

an

of

one

new

share

for

each

four

shares

held

oversubscription privilege).

[The company has
obtained from certain stockholders waivers of
subscrip¬
tion rights applicable to not less than
100,000 shares and
such shares are to be offered to the
general public free
of the stockholders' prior
rights.] Price—To be sup¬
plied by amendment.
Proceeds—To repay bank loan
and for working capital.
Underwriter—Eisele
Libaire, Stout & Co., New York.

&

King,

Rogers Corp., Rogers, Conn.
(letter of notification) a minimum of 5,883 shares
and a maximum of 7,453 shares of class B
common
Oct. 3

notification) 3,000,000 shares of

(par five cents).

purposes.

Prudential Loan Corp.,

one

Manufacturing Co.

313,845 shares of common stock (par 83^
cents), of which 213,845 shares are
being offered for
subscription by common stockholders of record Jan.
4,
1956 on

$37.50

payable; for research

Nov. 22 filed 111,000 shares of 44-cent
cumulative prior
preferred stock (par $5) and 55,500 shares of 10-cent
par
common stock to
be offered in units of one share
of

pany.

Inc., Las Vegas, Nev.
(letter of notification) 3,000 shares of
capital
•tock. Price—At par
($100 per share). Proceeds—For
South 5th St., Las
Vegas, Nev. Underwriter—Hennon A
Roberts, Las Vegas, Nev.

For

Investment

stock¬

Aug. 16

Proceeds

Mt.

Hackett

—

common

common

basis; rights to
Price—To be supplied
by amendment.

Jan. 31.

on

Proceeds

Dec. 15 filed

Jan.

key employees.

*.

Ottilia Villa,

($50 per share).
Proceeds—For processing plant,
heavy equipment, and
working capital. Office—2508 Auburn
—

Francisco, Calif.

stock to be offered for
subscription by
holders of record Jan. 10 on a
l-for-10

■

stock

Ohio Water Service Co.
(1/13)
(letter of notification) 12,157 shares of

;

notes

Jan.

Dec. 19 filed $925,000 of Limited
Partnership Interests in
the company (which is a
limited
partnership) being of¬
fered in minimum amounts of
$25,000 or in greater
amounts that are
multiples of $12,500. Proceeds—To be
spent in the drilling of exploration
wells on unproved
properties.
Underwriter-rNone, but J. Barth & Co., San
Francisco, Calif., will assist in the sale of
partnership
interests and other firms or
persons may also be en¬
gaged to do so. Offering—Being made
privately.

Mexico, Mo.

Mobile

cents

im¬

Oceanic Drilling &
Exploration Co.,
San

Refractories

filed 57,776 shares of common
stock (par
$5)
being offered to stockholders of National
Refractories
Co., a subsidiary, in exchange for 57,776 shares of
capital
stock (par $5) of National
on
a
share-for-share basis;
offer to remain open for 60
days from Nov. 17, 1955.
.Offer is conditioned upon Mexico
owning at least 80%
jof outstanding National stock
upon
consummation of
.exchange.
v:
: ■"

assessable

for

Co., New York.

Foundation,

Fulton

19

Aug. 22

American

and

cents). Price—15 cents per share. Pro¬
ceeds—For exploration and
development and other gen¬
eral corporate
purposes.
Underwriter—Philip Gordon &*

writer—None.;*
Mexico

from

parent,

Corp., Farmington, N. M.
notification) 2,000,000 shares of common

Nov. 8 (letter of
stock (par five

—

Oct.

the

Oak Mineral & Oil

(J. W.), Inc.

(letter of notification) 18,181 shares of
common
stock (par $1) to be offered for
subscription by employ¬
ees.
Price — $15 per share.
Proceeds
To reimburse
.company for monies expended by it to
purchase the
.aforementioned shares from the J. Weinstein
Office—510

advances

repay

Underwriter—To
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co. BidsExpected to be received on or about Jan. 31.

6

Inc.,

To

Telegraph Co.,

provements and additions to
property.
be determined

None.

Jan.

&

'

Pittman Drilling & Oil
Co., Independence, Kan.
Sept. 6 (letter of notification) 60,000 shares of 6% noncumulative preferred stock (par
$5) and 60,000 shares
of common stock (par 10
cents) to be offered in units of
one share of each.
Price—$5 per unit. Proceeds—For
payment of note and working capital. Office—420 Citi¬
zens National Bank
Bldg., Independence, Kan. Under¬
writer—Dewitt Investment Co.,
Wilmington, Del.

Underwriter—None.

-it Maryland & Kentucky Oil Co.

city.

same

general corporate
American Securities

Pa.

subscription by stockholders.
share). Proceeds—To be used to

outstanding.

Co.,

Pipelife Corp., Tulsa, Okla.
Nov. 29 filed 115,000 shares of
common stock
(par $1).
Price—$4 per share. Proceeds—To pay current accounts

for

reduce the demand notes

share. Proceeds—To ten selling stockholders. Office
St., Buffalo 3, N. Y. Underwriter—Doolittle

per

—710 Ohio

common

be

to

—311 West

it North Pittsburgh Telephone
Co., Gibsonia,
6 (letter of
notification) 4,000 shares of
to

share for each 3% shares held; unsub¬
be offered to public.
Price—$14 per

one

shares

share to stockholders and
$15 to public.
Proceeds—To
finance construction of an addition to
plant re. printing

,

Jan.

stock

to

the basis of

Inc., Caldwell, Idaho

terson, M. D., Caldwell, Idaho.

Co., Inc., Bedford, Va.
(letter of notification) 8,000 shares of common
be offered for
subscription by stockholders on

19

stock

Dec. 21 (letter of
notification) 500,000 shares of capital
stock (par 10
cents). Price—At par (10 cents
per share).
Proceeds—For mining expenses.
Office—c/o John Pat¬

Price—420 cents per share.
Proceeds—Fox
mining expenses. Office—374 Denver Club
Bldg., Den¬
ver, Colo. Underwriters—General
Investing Corp., New
York; and Investment Service Co.,
Denver, Colo.
v
Mansfield Telephone Co., Mansfield, Ohio
Nov. 4 (letter of
notification) ' 6,000 shares of

(par $1).

Proceeds—For investment.

Piedmont Label

activities.
Building, Winnemucca, Nev. Un¬
Roberts & Co., Denver, Colo.

it New York Mining Co.,

into

Jan.

Majestic Building,

stock (par one
cent). Price—20
Proceeds—For expenses incident to

certain

stockholders.

ferred

^olo.

—

mon

general corporate

shares

Office

expenses.

Mercury Corp., Winnemucca, Nev.
Sept. 16 (letter of notification) 1,500,000 shares
of

Underwriter—P. W.

100,000

vertible

Jan. 5

For mining

Uranium, Inc., Reno, Nev.
Aug. 4 (letter of notification)
2,000,000 shares of com¬
mon stock (par three
cents). Price—15 cents per share.
Proceeds—For expenses incident to
mining activities.
Office—206 N. Virginia
Street, Reno, Nev. Underwriter
—Philip Gordon & Co., Inc., New York, N. Y.
it Permachem Corp., West Palm
Beach, Fla.
Jan. 5 (letter of
notification) $123,610 of 6% notes (con¬
class A common stock). Price — At
par.
Proceeds—For working capital, etc. Office—5610
Georgia
Ave., West Palm Beach, Fla. Underwriter—None.

Nevada

^

account

Little Rock,

it Needle Mountain Mines,
Inc., Denver, Colo.
(letter of notification) 300,000 shares of
common
stock (par one
cent). Price—$1 per share. Proceeds—

non¬

Manhattan Mercury
Corp., Denver, Colo.
Oct. 26 (letter of
notification) 1,500,000 shares of com¬
mon stock
(par one cent), of which 1,400,000 shares
are

for

Pro¬

—

mining

Simms

share.

by amendment.
Office

.^7

3,000,000 shares of

45,000 shares of

per

Office

purposes.

supplied

tivities. Underwriter—Western
Bond & Share Co.,
Tulsa,
Okla.

Fidelity Life Insurance Co. (1/19)

filed

Price—$25

be

selling stockholders.

stock
stock

America, Moab, Utah
(letter of notification)
300,000 shares of non¬
assessable common stock
(par one cent). Price—$1 pex
share. Proceeds—For
expenses incident to

City, Utah.

Maine

To

—

common
common

Natural Power
Cdrp. of

Bldg., Albuquerque, N. M.
Underwriter—Mid-America Securities Inc. of
Utah, Salt

Lake

Price—To

Sept. 7

Price—10 cents
expenses incident to
mining

—

Pann-Utah

Underwriter—Equitable Securities Corp., Nash¬
ville, Tenn., and New York, N. Y.
Offering—Temporarily
postponed.

Co.

assessable capital stock
(par one cent).
per share.
Proceeds—For

operations.

50,000 shares of class A
50,000 shares of class B

and

$2).

ceeds

—

Canyon Uranium

filed

Ark.

it Lonesome Train
Productions, Inc.
Dec. 30
(letter of notification) $40,000
certificates of
indebtedness. Proceeds—For
working capital. Business
—Production of motion pictures for
theatre or television
distribution.
Office—Suite 1100
160
Broadway, New
York 38, N. Y.
Underwriter—None.
Lost

15

(par

Securities, Inc.,

Denver, Colo.

Bldg.,
Co.,

Service

National Old Line Insurance
Co.

(par $2)

Price—At par (10 cents
per share). Proceeds
—For mining expenses.
Office—440 West 3rd
North, Salt
Lake City, Utah.
Underwriter—Skyline

Investment

city.

Nov.

Uranium Co.

556 Denver Club

—

—

43

share.

Proceeds—For

Crescent Ave., Reading,

stock to be offered to stockholders on a
basis
share for each four shares held.
Price—($29 per

Proceeds—To

replenish

sustained in recent flood.

working

capital due
Underwriter—None

to

of

one

share).
losses

.

Rowan Controller

Co., Baltimore, Md.
Dec. 20 (letter of
notification) 6,935 shares of common
stock (par $10) to be offered for
subscription by stock¬
holders.
Price—$14 per share.
Proceeds—For develop¬
ment of

new

products and working capital

ture and sale of electrical controllers.
Home wood Ave.,

Baltimore, Md.

re.

manufac¬

Office—2313-2315

Underwriter—None.

Continued

on

page

44

44

(200)

Continued

from

43

page

Southern

«

Oxygen Co., Bladensburg, Md.

(1/24)

Dec. 29 filed

San

Juan Racing Association, Inc., Puerto Rico.
Sept. 27 filed 4,000,000 shares of common stock (par 50
cents), of which 3,800,000 will be represented by 3,000,000
^voting trust certificates and 800,000 warrants. These of¬
ferings are to be made in two parts: (1) an offering, at
CO cents per share, of

200,000 shares for subscription by
stockholders of record April 30, 1955, on a two-for-one
basis; and (2) a public offering of 3,000,000 shares, to be
represented by voting trust certificates, at 58.8235 cents
share. Proceeds—For racing plant construction. Un¬

$1,250,000 of convertible subordinated de¬
bentures due Feb. 1, 1966.
Price — To be supplied by
amendment.
Proceeds —For capital expenditures and

Underwriters—Johnston, Lemon & Co.,
Washington, D. C., and Union Securities Corp., New York.

working capital.
•

Southwest Gas Corp.,

filed

23

Dec.
Price

—

and for

Barstow, Calif. (1/17)
of common stock (par $1).
Proceeds — To repay ban* loans

44,208 shares

$11 per share.

construction.

new

Underwriter—First California

Co., Inc., San Francisco, Calif.

per

derwriter—None.

Glickstein, of New York

Hyman N.
City, is Vice-President.
San Juan Uranium

Exploration, Inc.
notification) 925,000 shares of non¬
Price—12 cents
per share.
Proceeds—For expenses incident to mining
activities. Office
718 Kittredge Bldg., Denver, Colo.
Aug.

19

(letter

assessable

of

stock (par one cent).

common

—

Underwriter—Shelley-Roberts & Co., Denver, Colo.
Sandia Mining &

Development Corp.
Sept 9 (letter of notification) 3,000,000 shares of capital
stock (par one cent).
Price—10 cents per share. Pro¬
ceeds— For mining expenses.
Office — Simms Bldg.,
Albuquerque, If. M. Underwriter—Mid-America Secu¬
rities, Inc. of Utah, Salt Lake City, Utah.
Sans

Souci

Hotel, Inc., Las Vegas, Nev.
Nov. 9 filed 1,428,000 shares of common stock (of which
1,097,529 shares are to be offered for subscription by
Etockholders at rate of 1% shares for each share held;
SO,471 shares are to be issued in payment for claims of
ceven
individuals and firms aggregating $30,471; and
£00,000 shares are to be offered by George E. Mitzel,
President of company). Price—$1 per share.
Proceeds
—For construction of new facilities; to pay off notes; and
for working capital. Underwriter—None.
Sayre & Fisher Brick Co., Sayreville, N. J.
Sept. 30 filed 325,000 shares of capital stock (par $1).
Price—To be supplied by amendment. Proceeds — For
prepayment of outstanding 5%% sinking fund bonds due
1970; balance for general corporate purposes, including
additions and improvements and working capital. Under¬
writer

—

Barrett

Herrick

Offering—Expected
Science

Press

&

Co.,1 Inc., New York City.

soon.

of

New

Spurr Mining Corp.

Jersey,

Inc.
Nov. 10 (letter of notification) 15,620 shares of common
stock (no par).
Price—$5 pe.r share.
Proceeds—For
building, equipment, working capital, etc. Office—Spur
Route 518, a mile west of the Borough of
Hopewell,
County of Mercer, N. J.
Underwriter—Louis R. Dreyling & Co., Jamesburg, N. J.

Nov. 9

(letter of notification) 300,000 shares of

stock.

\

Price—$1

common

share. Proceeds—For mining ex¬
penses.
Underwriter—Cavalier Securities Co., Washing¬
ton, D. C.
per

it Strategic Metals, Inc., Tungstonia, Nevada
4 (letter of notification) 1,200,000 shares of com¬
mon
stock.
Price—25 cents per share.
Proceeds—For

Jan.

expenses

R.

-

.

Sulphur Exploration Co., Houston, Texas
Nov. 21 filed 600,000 shares of 6%
convertible

non-

cumulative

preferred stock to be offered for subscrip¬
tion by common stockholders on the basis of one pre¬
share

ferred

each

for

common

held.

share

Price—At

share). Proceeds—For construction and op¬
eration ' of sulphur extraction plant.
Underwriter—To
be named by amendment.
L. D. Sherman & Co., New
York, handled common stock financing in August, 1954.

par

($2

per

Summit Springs

Uranium Corp., Rapid City, S. D.

Oct. 3 (letter of notification) 1,200,000 shares of common
itock (par 10 cents). Price—25 cents per share.
—For expenses incident to mining operations.

Harney Hotel, Rapid City,
Brickley, same address.
Superior Uranium Co.,

S. D.

Proceed!
Office—
Underwriter—Morrii

V.. 'yV

;

Colo.

Denver,

I'

(letter of notification) 29,600,000 shares of com¬
mon stock.
Price—At par (one cent per share). Pro¬
ceeds—For mining operations.
Office—608 California
Bldg., Denver, Colo. Underwriter—Securities, Inc., P. O.
127, Arvada, Colo.

Swank Uranium

Underwriter—Honnold

Moab,

Lake City, Utah.

(letter

of

notification)

150

shares

of

common

stock (no par).

Price—$100 per share. Proceeds—To be
used to operate the pilot plant to perfect
manufacturing
techniques of an animal food supplement. Office—c/o
Leonard E. Perry, 222 Union St., New Bedford, Mass.
Underwriter—None.

Co., Tulsa, Okla.

Sheraton

■'

(a) to its stockholders on the
basis of $100 principal amount of debentures for each
company

25

shares of stock then held and (b) to
employees of
corporation and its subsidiaries. Price—$95 per $100 of
debentures to stockholders; and at par to public. Proceeds
—For general corporate purposes.
Office—Boston, Mass.

Sheraton

but

Securities

Corp.,

a

subsidiary, will handle stock sales.
Shumway's Broken Arrow Uranium, Inc.
(letter of notification) 300,000 shares of common
(par 10 cents). Price—$1 per share. Proceeds—

Nov. 7
stock

For

mining

Office—Moab, Utah. Underwriter
Co., Salt Lake City,

expenses.

—Ackerson-Hackett

Investment

Utah.

Utah.
Inc., Denver, Colo.

Dec.

23

(par

$1.)

filed

shares

150,000

Price—$5

per

of

class

A

(1/17)

common

stock

share.

Proceeds—For working
purposes. Underwriters—

capital and general corporate
Simon, Strauss & Himrrie and A. M. Kidder & Co., both
of New York; William N.
Pope, Inc., Syracuse, N. Y.;
and Chace, Whiteside, West &
Winslow, Inc., and Draper,
Sears &
»

Co., both of Boston, Mass.
Corp.

(letter of notification) 13,333 shares of common
stock(par 40 cents). Price—$1 per share. Proceeds—
To selling stockholder.1 Underwriter
Weill, Blauner
l& Co.,v Inc., New York.
—

•

Silvray Lighting, Inc. (1/19)
16 filed 225,000 shares of common stock
(par 25
cents), of which 75,000 shares are to be for the account
.

Dec.

the

certain

company

and

150,000 shares for

selling stockholders.

Proceeds

capital.

—

To

be

used

Underwriter

the

account

of

Price—To be $3 per share.

for

expansion

and

working
Milton D. Blauner &
Co., Inc.,

—

New York.

it Sm«tk
Jan.

3

(Edson B.)

filed

Salt

Co.

Underwriter—Skyline Securities,

Proceeds

For mining expenses.
Office — 726
Bldg., Spokane, Wash.
Underwriter — Percy
Dale Lanphere, Emnire State Bldg., Spokane, Wash,
—

Tenison

Drilling Co.,

Inc., Billings, Mont.
Dec. 12 filed 400,000 shares'of common stock (par 100).
Price—$1 per share.
Proceeds—For drilling test costs,
payment of notes and accounts payable and loans and
for general working capital.
Underwriter — Carroll,
Kirchner & Jaquith, Inc., Denver, Colo.
Texas

American

Oil

Corp.
Nov. 3 (letter of notification) 600,000 shares of com¬
mon stock
(par 10 cents). Price — 50 cents per share.
Proceeds—For drilling expenses, etc.
Office—216 Cen¬
tral Bldg., Midland, Tex.
Underwriter—Kramer, Woodi
& Co., Inc., Houston, Tex.

Fund, Boston, Mass.
100,000 additional shares

(by amendment)

of beneficial interest in the Fund.

Southern

Mining & Milling Co. (1/31)
(letter of notification) 300,000 shares of com¬
mon stock
(par 10 cents). Price—$1 per share. Proceed!
—For expenses incident to
mining activities. Offices—

preferred

(par $100).

Price—To be supplied by amendment.
redemption of presently outstanding
of 5.50% first preferred stock.
Under¬

—

,

"

.

->

>




■

Smith

!■•■■■'%*

Trl-Continental Corp., New York

which

will

issuable

be

exercise of

upon

(par $1),

the

common

gtock

purchase warrants presently outstanding. Price—
Each warrant)currently entitled the holder to purchase
1.27 shares
at $17.76
per
share, for each one share
ipecified in the warrant certificate.;..
■
Trinidad Brick & Tile Co.
Dec.

14

stock

(letter of notification)

shares/ of

800

common

construction notes
due Dec. 15, 1963.
Price—At par. Proceeds—For pay¬
ing notes payable and accounts payable and operating
capital.
Office—Trinidad, Colo.
Underwriters—Fairman, Harris & Co., Inc., Chicago, 111.
;
/
(par $100); and $75,000 of 6%

,

,

.

Tunacraft, Inc., Kansas City, Mo.
Aug. 22 (letter of notification) $295,000 principal amount
12-year registered subordinated sinking fund de¬
bentures, dated Sept. 1, 1955 (with stock purchase war¬
rants). Price—At par (in denominations of $100 each
or multiples thereof).
Proceeds—To refinance and dis¬
charge secured obligation. Underwriter — McDonald,
Evans & Co., Kansas City, Mo.
of 6%

Underwriters Factors Corp.
7
(letter of notification) 29,500 shares of 6%%
participating convertible preferred stock (par $10) and
2,950 shares of common stock (par one cent) to be

Dec.

offered

in

share

Vesey

units
of

—

St.,

10

shares

of

preferred

Price

stock.

increase

—

unit.

per

capital. Office

working

and

stock

$100.01

—

51

York, N. Y. Underwriter—New York
Co., 90 Wall St., New York,

New

American

and

of

common

To

Securities

N. Y.

Union Gulf Oil & Mining Corp.
Sept. 9 (letter of notification) 600,000 shares of common
•tock (par 10 cents).
Price—50 cents per share. Pro¬
ceeds—For mining expenses.

Office—510 Colorado Bldg.,
Underwriter—Honnold & Co., same city.

Denver, Colo.
•

U.

S.

Automatic

Machinery & Chemical Corp.

(1/16-20)
(letter of notification) 300,000 shares of class A

common

ceeds

stock

For

—

(par 10 cents). Price—$1 per share. Pro¬
general corporate purposes. Office—8620

Montgomery Ave., Philadelphia, Pa. Underwriter—Co¬
Broadway, New York.

lumbia Securities Corp., 135

it U. S. Suburban Estates, Inc.
Dec.
mon

29

(letter

stock

of

notification)

300,000 shares of
Price—$1 per share.

(par five cents).

com¬

Pro¬

ceeds—For purchase

of land, payment of mortgage, de¬
velopment of lake area and other corporate purposes.
Office
c/o Schwartz, Gilman & Gold, 147 —16 Ja¬
—

maica

Ave., Jamaica, L. I., N. Y.

V. Maguire

Underwriter—Robert

Co., New York, N. Y.

Universal Service Corp., Inc., Houston, Texas
July 8 filed 500,000 shares of common stock (par two
mills). Price — $2.50 per share. Proceeds — For equip¬
ment, mining costs, oil and gas development, and other
corporate purposes. ' Underwriter— None.
Offering —
1

Utah-Arizona Uranium,

Inc., Salt Lake City, Utah
Aug. 1 (letter of notification) 600,000 shares of common
ceeds—For expenses

writer—Dillon, Read & Co., Inc., New York.
Expected sometime in January.
it Texas Utilities Co., Dallas, Tex.
Jan.

5

filed

400,000 shares of

(1/31)

common

Proceeds—For further investment in

Offering-

stock

common

(no par).
stocks

of

and for other corporate purposes.
Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Kidder, Peabody & Co. and Merrill Lynch.

Pierce, Fenner & Beane
(jointly); Union Securities
Corp.; Lehman Brothers and Bear, Stearns & Co. (joint¬
ly); The First Boston Corp. Bids—Expected to be re¬
ceived up..to 11 a.m. (EST) on Jan. 31.
Textron

American,

Dec. 29 filed

debentures

due

amendment.

Inc.

(1/24)

$30,000,000 of 5% convertible subordinated
Jan.

1, 1971.

Proceeds—To

Price—To be supplied

finance

non-textile

by

diversi¬

fication program. Underwriter—Blair & Co Incorporated,
New York.

it Thunderbird Development. Inc., Craig, Colo.
(letter of notification) 500,000 shares of common

Dec. 30

stock

(par

one

cent).

Price—25 cents

ceeds—For mining expenses.

per share.
Pro¬
Office—124 West Victory,

Nov. 14 (letter of notification 45,000 shares of 8% cumu¬
lative preferred stock
(par $1) and 45,000 shares of
class Af
corr^mon stock j (par $1)- to £>e offpr^d an units
of one share of each class- of, stock,
Prjce—$1 per unit

,

working capital, etc.
Tower, Seattle, Wash. Underwriter
—National Securities Corp., Seattle, Wash.

Proceeds—For repayment of loans,

Office—1810

•tock

shares

Healey Building, Atlanta Ga., and 4116 No. 15th
Avenue,
Phoenix,.Ariz. Underwriter
Franklin Securities Co.,
Atlanta, Ga. i
1.

Wichita, Kansas.

Travelfares, Inc., Seattle, Wash.
Sept. 14 (letter of notification) 100,000 shares of non¬
assessable common stock. Price—At par ($1 per share).

190,000

Craig, Colo.

*■*

writer—Albert C. Schenkosky,

Proceeds—Toward

Sept. 14

?

payment of indebtedness,

Postponed.

Texas Eastern Transmission Corp.
30 filed 200,000 shares of cumulative

Nov.

Pro¬

unit.

Price—$1,010 per

stock.

common

expansion, estab¬
professional and editorial
assistance, advertising and promotion; and working capi¬
tal.
Office—Widener Bldg., Philadelphia, Pa.
Under¬

Nov. 4

subsidiaries

Silver Creek Precision

Dec.'12

cf

Inc.,

Target Uranium Co., Spokane, Wash.
Aug. 12 (letter of notification) 1,000,000 shares of non¬
assessable stock (par five cents).
Price—20 cents per

stock

Signature Loan Co., Inc., Yonkers, N. Y.

_

Co.,

Sept. 9 (letter of notification) 3,000,000 shares of capita)
stock (par one cent).
Price—10 cents per share. Pro¬
ceeds—For mining operations. Office—605 Judge Bldg.,

share.

Oct. 31 filed $15,000,000 of 6M>% cumulative income sub¬
ordinated debentures due Nov. 1, 1980 to be offered

Underwriter—None,

&

Paulsen

Corp. of America

Initially by the

Sweetwater Uranium

Salt Lake City,

it Shangrila Uranium Corp.
Dec. 30 (letter of notification) 300,000 shares of com¬
mon
slock.
Price—At par ($1 per share).
Proceeds—
For mining expenses. Underwriter—Western States In¬
vestment

Utah.

capital.

lishment of additional offices;

Proceeds

Aug. 17 (letter of notification) 3,000,000 shares of com¬
stock. Price—At par (10 cents per share). Proceed!
—For expenses incident to mining activities. Office—

it Sea Products Corp., N*w Pedford, Mass.

of

ceeds—For

one

Drilling & Exploration Co.

mon

Jan.

6

shares

Nov. 9

Box

working

Blvd., Los Angeles, Calif.

Oct. 27 filed 2,573,508 shares of common stock

-A* Sterling Investment Fund Inc., Charlotte, N. C.
Jan. 9 filed (by amendment) 50,000 shares of common
stock (par $1).
Price—At market. Proceeds—For in¬
vestment.

Office—5225 Wilshire
Underwriter—None.
Traveler Publishing Co., Inc., Philadelphia, Pa.
Sept. 29 (letter of notification) $247,000 of 5V2% con¬
vertible debentures, series A, due Sept. 1, 1965 and 24,700 shares of common stock (par 10 cents), to be offered
In units
consisting of $1,000 of debentures and 100

Proceeds—For

Underwriter—

incident to mining operations.

Reynolds & Co., Salt Lake City, Utah.

1956

January 12,

The Commercial and Financial Chronicle... Thursday,

|

Underwriter—None.

Trans-American

-.l-

Development Corp.

Price—50 cents per share. Pro¬
incident to mining activities. Office
—Greyhound Terminal Building, West Temple & South
Temple Streets, Salt Lake City, Utah. UnderwriterTrans-Western Brokerage Co., New Orleans, La.
J
(par 16% cents);

Utah Grank, Inc., Reno, Nev.
j
Aug. 15 (letter of notification) 270,000 shares of capital
•tock.
Price—At par ($1 per share).
Proceeds—For ex¬

incident to mining activities. Office—312 ByingBldg., Reno, Nev.
Underwriter—Lester, L. LaFor-

penses
ton

tune, Las Vegas, Nev.

fnmo:,

;<J.

■

Wagon Box Uranium Corp., Provo, Utah it■£
Nov. 21 filed 2,000,000 .shares of common -stock
(par
five cents).
Price—25 cents per share.
Proceeds—To
explore and acquire claims* < for purchase of equipment
and for working capital and other corporate purposes.
Underwriter—H.

P.

Investment

Co.,

Provo,

Utah

and

Honolulu, Hawaii.:,
Warrior Mining Co., Birmingham, Ala.
Sept. 29 (letter of notification) 6,000,000 shares of

assessable
cents

common

stock

(par

cent).

one

Price

—

non¬

Five

share. Proceeds — For expenses incident to
mining activities. Office — 718 Title Guarantee Bldg.,
per

Birmingham, Ala. Underwriter—Graham &
burgh, Pa. and Birmingham, Ala.
^

Co., Pitts¬

.

Western Greyhound
Dec.

19 filed

Racing, inc.

(2/13-17)

1,950,000 shares of

common stock (par one
cent), of which 1,800,000 shares are to be offered pub¬
licly.' Pr^ce—$1.25 per share. Proceeds—To purchase as¬

sets

of

iArj^ona Kennel Club, and-for working capital

.

Number 5498

Volume 183

.

.

.

The Commercial and Financial Chronicle

(201)

and other general

•

corporate

Office—Phoenix,

purposes.

Underwriter—M. J. Reiter Co., New York.

Ariz.

Western States

Refining Co.

Corp. (jointly); Morgan Stanley & Co.; The First Boston
Corp. Bids—Expected to be received on March 6.

.

(1/30)

25

(par

debentures

unit.

cents)
five

and

be

to

shares

offered
of

stock.

Proceeds—For construction

Houdriformer

in

units

of

of

$50

Price—$52.50 per

and

installation

of

semi-annual instalments. Probable bid¬
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler; R. W. Pressprich & Co.

unit;, expansion of refinery; to
repay outstanding obligations; and for working capital.,
Office—North Salt Lake, Utah.
Underwriter—J. Barth
& Co., San Francisco, Calif.

Central Power A light Co.
Dec. 20 it

Proceeds

For expenses incident

to mining

activities.
Office—414 Denver Nat'l Bldg., Denver, Colo.
Under¬
writer—Floyd Koster & Co., Denver, Colo.
—

Woodstock Uranium Corp., Carson City, Nev.
Nov. 21 (letter of notification) 3,000,000 shares of com¬

between
bonds.

-

—To

repay bank loans and for construction program.
Underwriter—To be determined by competitive
bidding.

bidders:

Brothers

and

Halsey, Stuart & Co. Inc.; Lehman
Glore, Forgan & Co. (jointly); Kidder,
Peabody & Co.; Union Securities Corp.; Merrill Lynch,
Pierce, Fenner & Beane and Salomon Bros. & Hutzler
(jointly); The First"Boston Corp.; Kuhn, Loeb & Co.
Bids—Expected to be received up to noon (EST) on

Price—At par (10 cents per share). Proceeds
mining expenses. Office—Virginia Truckee Bldg.,
Carson City, Nev. Underwriter—Cayias, Larson, Glaser,
Emery, Inc., Salt Lake City, Utah.

Wy-Cal Uranium Enterprises, Inc., Lander, Wyo.
6 (letter of notification) 273,000 shares of capital
stock (par 50 cents). "Price—$1 per share.
Proceeds—
For mining operations.
Office—268 Main St., Lander,
Wyo.
Underwriter—Valley State Brokerage, Inc., 2520
South State St., Salt Lake City, Utah.
',

additional

Wycotah Oil & Uranium, Inc., Denver, Colo.
Nov. 10 filed 1,500,125 shares of common stock (par one
cent) to be offered only to the owners of percentages of

equipment trust certificates.

'

stock.

—For

Dec.

.

Chemical Corn
Dec. 8 it
on

of certain

uranium

properties, and in exchange
for such working interests and properties. Price—Shares
to be valued at an arbitrary price of $4 per share. Pro¬
ceeds—To acquire properties. Underwriter—None.

10

filed

971,000

shares

capital

of

stock

(par

10

cents), of which 700,000 shares are for company's ac¬
count and 271,000 shares for account of
two selling
stockholders.

Price—On the over-the-counter market at

then

prevailing price, but not less than $2 per share.
Proceeds—For auxiliary equipment for Cody
plant, for
acquisition of additional site, and related activities.

Wyton Oil & Gas Co., Newcastle, Wyo.
Sept. 29 filed 254,000 shares of common stock (par $1).
Price—At the market. Proceeds—To August Buschmann,
of Seattle, Wash., and members of his family. Under¬
writer—None.
Yellowknife Uranium Corp.
Aug. 19 filed 1,000,000 shares,of common stock (par one
cent), of which 700,000 shares are to be sold for account
of company and 300,000 shares for account of Stancan
Uranium Corp.
Price—$1.50 per share.
Proceeds—For
payments under purchase and option agreements for
claims; for working capital and reserve funds; and for

Crerie & Co., Inc., both of New York City.'
Indefinitely postponed.

Offering—

if York-Hoover Corp., York, Pa.
Jan. 4 (letter of notification) 11,020 shares of
stock

$10).

(par

Price—$12

additional working capital.

Co., York, Pa.

.

share.

per

common

Proceeds—For

Underwriter—E. W. Clark &

v.'"?--""

.

Zenith-Utah Uranium Corp.

Sept. 14 (letter of notification) 6,000,000 shares off class
A

stock.

common

Price—At par

(five cents).

Proceeds

17

Citizens & Southern National

Atlanta, Ga.
Nov.

8

the

bidders:

additional

holders
shares

the

held

Bank,

recommended

shares of

on

common

basis

of

one

the

stock

sale

of

(par $10)
share

new

for

100,000

to stock¬
each

nine

of

Jan. 20, 1956 (subject to approval of
January). Price—$30 per share. Pro¬
ceeds—To increase capital and surplus.
as

in

-

• •

21

it

was

Fre:g!:tways, inc.

May

announced

from the redemption of the

preferred stock. Underwriter
—Probably Blyth & Co., Inc., San Francisco, Calif.
Dallas

Power &

Nov. 28 it

Light Co.

(2/15)

C,*?■■■■'

reported company plans to issue and sell
$10,000,000 of first mortgage bonds. Proceeds—To repay
bank loans and for new construction. Underwriter—To
was

be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Salo¬
mon Bros. & Hutzler;
Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Union Securi¬
ties Corp.; Equitable Securities Corp.; Lehman Brothers;
Blair & Co. Incorporated.
Bids—Tentatively scheduled

for Feb.

15.

Delaware

Sept. 28 it

Power

&

ceeds—For

construction

determined

expects to

company

by

Underwriter—To

be

competitive bidding. Probable bidders:
Langley &
Co. and Union Securities Corp.

C.

W.

program.

(jointly); Kidder, Peabody & Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Carl M. Loeb, Rhoades
& Co.; Blyth & Co. Inc. and The First Boston Corp.
(jointly); White, Weld & Co. and Shields & Co.(jointly);
Lehman Brothers.

Dolly Madison International Foods Ltd.
Nov.

it

15

Alabama

Power Co.

Du

Foremost

Dairies, Inc.

future date to give its stockholders the right

purchase

Allen &

that

announced

was
a

its

Dolly

Madison

stock.

Underwriter—

Co., New York.

<.

Mont

Broadcasting Corp.
Aug. 10 it was announced that corporation, following is¬
.

(3/15)

announced company plans to issue and sell
$14,000,000 of first mortgage bonds. Proceeds—For con¬
struction program.
Underwriter—To be determined by

Laboratories* Inc. of 944,422 shares of common stock as
a dividend, contemplates that additional shares will be

competitive bidding.

offered

Co. Inc.; Blyth &

derwritten.

was

Probable bidders: Halsey, Stuart &
Co., Inc. and Kidder, Peabody & Co.
'(jointly); Lehman Brothers; Equitable Securities Corp.,
Union Securities Corp. and Drexel & Co. (jointly); The
First Boston Corp.; Morgan Stanley & Co.; Harriman
Ripley & Co.* Inc. and Goldman, Sachs & Co. (jointly).
Bids—Expected to be received on March 15. Registration

suance

&

to

2

to

stockholders

of

Allen

B.

Du

stockholders.
This offering will be un¬
Kuhn, Loeb & Co. and Van Alstyne, Noel
Du

Mont

Laboratories

class

A

stock fi¬

Stockholders of Laboratories
Oct. 10 approved formation of Broadcasting firm.
some

years

ago.

Duquesne Light Co.
Nov. 28, it was announced

—Planned for Feb. 17.

Automatic Washer Corp.
Dec. 5 it Was reported company plans early registration
of 250,000 shares of common stock (par $1.50). Under-

writer-r-Cohen, Simonson & Co., New York.

SEC has authorized Standard
Light Corp. to sell not more than 10,000 shares
of the common stock of Duquesne Light Co. on the Nev/
York Stock Exchange by negotiated
sale to a pur¬
chaser who will buy at the prevailing market prices,
less a discount of not more than 50 cents per share.
Power &

Bangor & Aroostock RR.
Dec.

19

it

early next

was

announced

year

stockholders

29,762

who

will

refinancing program.
from

private sale
bonds, to redeem

mortgage bonds.

company

shares
vote

of
Jan.

Proceeds

—

may

issue and sell

common

stock

to

its

17
on
approving a
Together with funds

of

$8,000,000 new 4*A% prior lien
$10,400,000 outstanding 4%% first

Underwriter—May be The I^irst Boston

Corp., New York.

it Empire Petroleum Co., Denver, Colo.
Jan. 7 E. M. Stone, President, announced company plans
early registration of $2,000,000 of debentures. Proceeds—
Together with funds from private placement of $1,000,000 of senior debentures, to be used for working capital
and additional refining equipment at both refineries.
Underwriter—May be Julius Maier Co., Inc., Jersey City

reported

-

-

issue and sell
market condition*

company

may

$10,000,000 first mortgage-bonds if
-permit. Underwriter—To be determined by competitive
biddings Probable bidders: Halsey, - Stuart & Co. Inc.;
Lehman
Brother's; Merrill" Lynch,'- Pierce," Fenner
Beane and White, Weld & Co. (jointly); Salomon Bro*.
& Hutzler and Union Securities Corp. (jointly); Kuhn,

?

& Co. and ArG/Allyn & Co., Inc. (jointly); Lee
Higginson Corp. and Carl M. Loeb, Rhoades & Co. (joint-,
ly); Stone & Webster Securities Corp.
V

Loeb

Houston
Oct.
year

31

it

Lighting & Power Co.

was

about

reported

company

sell early next

may

$30,000,000 of bonds. Underwriter—To bo
by competitive bidding. Probable bidders:

determined

Halsey, Stuart & Co. Inc.; Smith, Barney & Co., Lazard
Freres & Co. and Blyth & Co., Inc. (jointly); Lehman
Brothers, Union Securities Corp. and Salomon Bros. &

(jointly); Kidder, Peabody & Co.; Equitable
Corp. Offering — Expected ip February or

Securities
March.

-

Hudson
Nov.

it

28

Pulp & Paper Corp.
was

r

reported company may do

some

public

proposed newsprint mill,
which, it is estimated, will cost about $25,000,000. Under¬
writer—Lee Higginson Corp., New York.
in

financing

connection with

Inland Steel Co.
Nov.

Joseph L. Block, President, announced that a
portion of the required funds for the com¬
pany's expansion program (estimated to cost approxi¬
mately $260,000,000 for three-year period 1956-1958)
will be derived from retained earnings and depreciation,
3,

substantial

However, he stated, it will also be necessary
large portion through public financing. It is.
quite likely that a major part will be in the form of debt"
financing. No such financing is contemplated during the
current year, nor have the times or methods of financ¬
ing been definitely determined. Underwriter — Kuhn,"
Loeb & Co., New York.
reserves.

to

a

secure

Kansas

Dec. 27 it

Gas
was

&

Electric

Co.

(2/27)

reported company plans to issue and sell

$7,000,000 of first mortgage bonds due 1986. Proceeds—
bank loans and for construction program. Un¬
derwriter — To be determined by competitive bidding.

To repay

Probable bidders:

rities

Corp.

and

Halsey, Stuart & Co. Inc.; Union Secu¬
Stone & Webster Securities Corp.

(jointly); Kidder, Peabody & Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Lehman Brothers and
Bear, Stearns & Co. (jointly); Blyth & Co., Inc. and.The
First Boston Corp. (jointly); Glore, Forgan & Co. and
Goldman, Sachs & Co. (jointly); Harriman Ripley & Co.
Inc. Bids—Expected to be received up to 11 a.m, (EST)
on

Feb. 27.
Kansas

Dec. 27 it

Registration—Scheduled for Jan. 27.
Gas

was

&

Electric

reported

Co.

(2/27)

company

plans to issue and sell

200,000 additional shares of common stock. Proceeds—
To repay bank loans and for construction program. Un¬
derwriter
To be determined by competitive bidding.
—

bidders:

Probable
Sachs &

Co.

Glore,

Forgan

Co.

&

Goldman,

and

(jointly); Merrill Lynch, Pierce, Fenner &

Beane, Kidder, Peabody & Co. and White, Weld & Co.

(jointly); Lehman Brothers; Union Securities Corp. Bidy
—Expected to be received up to 11 a.m. (EST) on Feb.
27. Registration—Scheduled for Jan. 27.

N. J.

,

Federal

was

r

Mont

its

Co. handled

nancing
on

Dec.

on

it

16

Hutzler

Light Co.

announced that the

was

undertake some common stock financing early in 1956,
probably first to stockholders (this is in addition to bond
and preferred stock financing planned for Dec. 13). Pro¬

to

Dec. 14 it

(3/29)

announced company

tion—Planned for March 2.

corporation plans to <offer
new common shares to
preferred stockholders at market
prices payable with funds to be received March 15, 1956

intends at

Prospective Offerings

was

Gulf States Utilities Co.

Consolidated
Dec.

Office—45 East Broadway, Sait
Underwriter—Bel-Air Securities Corp.,

city.

same

2/3).

plans to issue and sell
$16,000,000 of first mortgage bonds. Proceeds—For con¬
struction program. .Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Morgan, Stanley & Co.; The First Boston Corp.;
Shields & Co. and Salomon Bros. & Hutzler (jointly);
Harriman Ripley & Co. Inc.; Lehman Brothers; Blyth &
Co., Inc. and Kidder, Peabody & Co. (jointly); Union
Securities Corp. and Equitable Securities Corp. (jointly).
Bids^--Expected to be received on March 29. Registra¬

Halsey,

—For mining expenses.

Lake City, Utah.

Dec. 14 it

(1/20)-

directors

U.

Georgia Power Co.

are

Stuart & Co. Inc.; Salomon Bros. & Hutzler.
r

-

company has applied to the
Commission for permission to issue

(1/13)

expected to be received by the company on or
about Jan. 18 for the purchase from it of about
$7,000,000
Probable

P.

(1/30

announced

—Paine, Webber, Jackson & Curtis, New York, and Mitchum, Jones & Templeton, Los Angeles, Calif. Registra¬
tion—Expected Jan. 9.
'

—

Chicago, Burlington & Quincy RR.
Bids

other

general corporate purposes.
Office — Toronto,
Canada. Underwriters—Gearhart & Otis, Inc. and F. H.

Jan.

Telephone Co. of California
was

unexchanged stock to be offered publicly. Price—$20.50
per share.
Proceeds—Together with funds from private
sale of $15,000,000 of debentures and $5,000,000 of notes,
to retire any 5% preferred shares not presented for ex¬
change; and to pay for expansion program. Underwriters

Kuhn, Loeb & Co.; The First Boston
Corp.; Hemphill, Noyes & Co. and W. C. Langley & Co.

stockholders

Wyoming-Gulf Sulphur Corp.
Oct.

vote

it

*>

718,862 shares of 4V2% preferred stock (par $20), to be
offered in exchange for 5% preferred stock (par
$20) of which there are outstanding 1,437,724 shares;

snares

Underwriters

working interests in certain oil and gas leases and to the
owners

stockholders will

first mortgage
by competitive
Stuart & Co. Inc.;
of

determined

first

proposal to offer to stockholders 590,425
of capital stock on a l-for-8 basis.

a

20

California

Exchange Bank, New York

announced

was

approving

General

Dec.

Feb. 14.

mon

announced company may issue and sell

was

$10,000,000"and $12,000,000

Underwriters—To be

bidding. Probable bidders: Halsey,
Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fenner & Beane
(jointly); Lehman Brothers and Blyth A
Co., Inc. (jointly); Glore. Forgan & C04 and The First
Boston Corp. Offering—Expected early in 1956..
: w .

(2/14)

was

Probable

McDowell, both of Chicago, 111.

Power Corp.

April 14 it

reported company plans to issue and sell
$10,000,000 of first mortgage bonds due 1986. Proceeds

t

Wonder Mountain Uranium, Inc., Denver, Colo,
j
Aug. 12 (letter of notification) 2,380,000 shares of com¬
mon stock
(par one cent).
Price—10 cents per share.

Florida

ders:

cracking

Corp., Houma, La.

it

159,000

and Straus, Blosser &

ture in 30 equal

a

12

was
reported early registration is expected
shares of common stock.
Price — Probably
$5 per share. Underwriters—Fairman, Harris & Co., Inc.,

of

★ Central of Georgia Ry. (1/25)
Bids are expected to be received
by the company up to
noon
(EST) on Jan. 25 for the purchase from it of
$4,680,000 equipment trust certificates, series B, to ma¬

Dec. 14 filed $1,050,000 10-year 6% sinking fund deben¬
tures due Jan. 1, 1966, and 105,000 shares of common
stock

Flo-Mix Fertilizers
Dec.

45

Pacific Electric Co.

if Bell Telephone Co. of Pennsylvania (3/6)
Jan. 6 it was reported company is planning to issue and
sell $35,000,000 cf debentures to be dated March 1, 1956.

Dec.

Proceeds—To repay advances from American Telephone
& Telegraph Co., the parent. Underwriter—To be deter¬

preferred stock, together with common stock purchase
warrants.
Proceeds — About $2,000,000, together with

ther

of notes, to repay bank
Byllesby & Co. (Inc.) and

tion

13

issue

it

of

was

from

mined by competitive bidding. Probable bidders:

$2,000,000

Stuart & Co. Inc.;

loans.

& Co.

Hajyddn] Stond

Halsey,
Kuhn, Loeb & Co. and Lazard Freres
(jointly); White, Weld & Co. and Union 'Securities




announced

subordinated

directors

income

private

Underwriters-^-H.

sale
M.

are

considering an
or
possibly

debentures

&! Co., New York.' ' J

;

Kimberly-Clark Corp., Neenah,
Nov. 22

it

was

announced

that the

Wis.

company

plans fur¬

financing, the nature and extent of which has not
yet been determined, except it is not the present inten¬
to

sell additional

common

stock.

Proceeds—To be

Continued

on

page

46

46

The Commercial and Financial Chronicle...

(202)

Continued from page

New York Central RR.

45

plant.

Underwriters—Dillon, Read & Co.
&

Nov; 28 company asked ICC for authority to sell $6,600,additional $37,000,000.
New York.

19 it was announced stockholders

offering

proposed

on

& Co.

will vote Jan. 25

stockholders of

to

this week

equipment trust certificates to mature Dec. 15, 19561970 to Despatch Shops, Inc., a wholly-owned subsidiary,
with latter to ultimately offer the certificates through
competitive bidding. Probable bidders: Halsey, Stuart

Underwriter—Blyth & Co., Inc.,

Lincoln Rochester Trust Co.
Dec.

nolds

000

further expansion, estimated to cost an

used to pay for

& Co.

100,000 addi¬

(par $20) on a l-for-4
Underwriter—The First Boston Corp., New York.

tional shares of common stock
basis.

it

11

New

stockholders of record on or about Feb. 29, 1956

common

to subscribe for additional common stock at
the rate of one new share for each 10 shares held; rights
the

to
to

right

Louisiana Power & Light Co*># n

-y
financing
during 1956 (probably bonds). Underwriter — To be
determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; Equitable
Securities Corp. and Union Securities Corp. (jointly);
Salomon Bros. & Hutzler; White, Weld & Co. and
Shields & Co. (jointly); Merrill Lynch, Pierce, Fenner
& Beane, Kidder, Peabody & Co. and Harriman Ripley
& Co. Inc. (jointly); The First Boston Corp. and Glore,
Forgan & Co. (jointly).
Dec. 19 it

announced company plans some

was

Jan. 9 it

(M.)

reported company may issue and sell $40,000,000 of subordinated convertible debentures due 1981.

Underwriter—Eastman, Dillon & Co., New York.
ing—Expected in February.
Mercantile National

Dec. 12 it

Offer¬

Bank of Dallas

reported stockholders will vote Jan. 10

was

a

on

interest.

Dealer^anager#^rancis. I.. du

•

New York Telephone

•

Pacific

Ry.

expected to be received by the company

Stuart & Co, Inc.; Salomon Bros. & Hutzler.
announced

company

new

construction.

Underwriters

—

To be

determined by

competitive bidding. Probable bidders:
(1) For bonds—Halsey, Stuart & Co. Inc.; Merrill Lynch,
Pierce, Fenner & Beane; Lehman Brothers; Kidder, Peabody & Co.; Union Securities Corp., Equitable Securities
Corp. and Drexel & Co. (jointly).
(2) For preferred
stock—W. C. Langley & Co.; Glore, Forgan & Co. and
Sterne, Agee & Leach (jointly); The First Boston Corp.;
Blyth & Co., Inc.; Kidder, Peabody & Co. and White,
Weld & Co. (jointly). Bids—Expected to be received on
March 1. Registration—Planned for Feb, 3.
Modern Homes Corp. (Mich.)
Nov. 21 it was reported company may Offer
publicly
$1,000,000 of convertible debentures and some common
stock.
Business
Manufactures prefabricated homes.
—

Offices—Dearborn, Mich., and Port Jervis, N. J. Under¬
writer—Probably Campbell, McCarty & Co., Inc., De¬
troit, Mich.
Narragansett Electric
Jan. 3 it

Co.

Dec. 12 it

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 Corp.; Kuhn,

Loeb & Co.; Salomon Bros. &
Hutzler; White, Weld &
Co.; Blyth & Co., Inc. and Harriman Ripley & Co. Inc.
(jointly); Union Securities Corp.; Kidder, Peabody &
Co. and Stone & Webster Securities
Corp

(jointly); Leh¬
Brothers and Goldman, Sachs & Co. (jointly). Bids
—Expected to be received sometime in March, 1956.

man

New

England Electric System
was announced
company plans to offer to its
stockholders 834,976 additional shares of common stock
the basis of

one

new

share for each

12 shares

held.

Underwriter—To be determined by competitive
bidding.
Probable bidders: Blyth &
Co., Inc., Lehman Brothers
and Bear, Stearns & Co.
(jointly); Carl M. Loeb, Rhoades
& Co., Ladenburg, Thalmann & Co. and
Wertheim & Co.
(jointly); Merrill Lynch, Pierce, Fenner & Beane, Kid¬
der, Peabody & Co. and White, Weld & Co.

(jointly).

Bids—Expected sometime in May, 1956.
★ New England Electric System
Jan.

3

it

was

announced

company

,

plans

to

1956.This

would

be

merge

its

followed

by

a

$20,000,000

first mortgage bond issue
by the resultant company, the
name of which has not as
yet been determined. Under¬
writer — May be determined

by competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Kuhn, Loeb
& Co., Salomon Bros. &
Hutzler, Union Securities Corp.
and Wood, Struthers & Co.
(jointly); Lehman

Brothers;
Corp.; Equitable Securities Corp.; Mer¬
rill Lynch, Pierce, Fenner &
B^ane, Kidder, Peabody &
Co. and White, Weld & Co.
(jointly).
The First Boston

New

Jan. 3 it

England Power Co.
was

announced company

plans to issue and sell
mortgage bonds during October
Underwriters—To be determined
by competi¬
tive bidding.
Probable bidders:
Halsey, Stuart & Co.
$10,000,000

of

of

first

1956.

Inc.; Kuhn, Loeb & Co., Salomon Bros.
Securities Corp. and
Wood, Struthers

&

Hutzler, Union
& Co. (jointly);
Lehman Brothers; The First Boston
Corp.; Equitable Se¬
curities Corp.; Merrill
Lynch, Pierce, Fenner & Beane,
Kidder, Peabody & Co. and White, Weld & Co.




was

Underwriter

before

or

Bank, Seattle (1/18)

announced bank plans to offer its stock¬

holders of record

Jan.

Feb.

18, 1956, the right to subscribe
for 100,000 additional shares of

24

capital stock (par $20) on the basis of one new share
for each eight shares held. Price—To be not less than
$85 per share. Proceeds—To increase capital and sur¬
plus. Underwriter—Blyth & Co., Inc., Seattle, Wash.
South Texas

Aug.

30

Oil

& Gas

stockholders

of

Co.

authorized

cumulative

issuance of
110,000
preferred stock (par

convertible

Proceeds—For exploration and drilling program,
Underwriter—Previous common stock financing waa
handled by Hunter Securities Corp., New York, who
etc.

it is stated, will not underwrite the new preferred issue.

Dec.

18

David

C.

pany

has filed

an

Bintliff, President, announced com¬
application with the Federal Power

Commission

for a certificate of necessity to build a
364-mile submarine gas pipeline off-shore the coast of
Louisiana from

the

Sabine River to

the

Gulf

Coast

of

the State of

Mississippi. It is estimated that this gather¬
ing system will cost approximately $150,000,000. Type
of financing has not yet been determined, but tentative
plans call for private sale of first mortgage bonds and
public offer of about $40,000,000 of securities (probably
notes, convertible into preferred stock at maturity, and
stock).

Underwriter—Salomon Bros. & Hutzler,

New York.

(jointly).

filed with the California P. U. Com¬
application for exemption from competitive
bidding of a proposed new issue of cumulative preferred
stock.

Pennsylvania Electric Co. (2/15)
was reported
company plans to issue and sell
$25,000,000 of first mortgage bonds.
Proceeds

about

To

bank loans and
for new construction.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First
Boston Corp.; Kuhn, Loeb & Co.;
Kidder, Peabody &
Co.; Equitable Securities Corp.; Harriman Ripley & Co.,
Inc.

repay

Bids—Expected Feb. 15.

Pennsylvania Electric Co.
Dec. 19 it
sale

of

reported company proposes issuance and
$9,000,000 of preferred stock early next year.
construction

program.
Underwriter—To
by competitive bidding. Probable bid¬
ders: Kuhn, Loeb & Co.; W. C.
Langley & Co. and
Glore, Forgan & Co. (jointly);-Kidder, Peabody & Co.;
The First Boston Corp.;
Smith, Barney & Co.; Harriman
Ripley & Co. Inc. Bids—Expected Feb. 15.

be

determined

Pigeon Hole Parking of Texas, Inc.
22 it was announced that about
800,000 shares of
additional capital stock'would be offered for
public sale
after the first of January.
Proceeds — Estimated at
about $2,000,000, will be used to pay for
expansion pro¬

Underwriters—Porter, Stacy & Co., Houston, Tex.;
Muir Investment Corp., San Antonio, Tex.

gram.
and

Pike

Oct.

17

Southern Indiana Gas & Electric Co.

Dec.

it

was

$600,000 of

reported

common

plans

to sell about
Underwriter—Bache & Co.,

company

stock.

New York.

19

it

financing in

that

announced

1956

in

company

connection

* Reynolds Metals Co.
vote

29
on

it

was

with

may

its

do

some

proposed

ex¬

(2/6-10)

announced

approving

stockholders

issue

on

Jan.

27

will

of

800,000 shares of
cumulative preferred stock (par $50). Proceeds—From
this sale, together with funds to be received from bor¬
rowing $60,000,000 from institutional investors and $15,a

new

(2/23)
the Indiana

authority to offer to its

common

stockholders of record Feb. 21, 1953, an additional 83,030 shares of common stock on the basis of one new
share for each

11 shares held. Rights are to expire on
Underwriter—Smith, Barney & Co., New York,

March 8.

underwrote

previous rights offering.
pected about Feb. 2.
Southern
Nov. 7 it

Nevada

was

Power

Registration—Ex¬

Co.

announced company

plans to sell in 1950

approximately $10,000,000 of new securities (probably
$7,000,000 first mortgage bonds and $3,000,000 preferred
and

stocks). Proceeds—For construction pro¬
Underwriters—For stocks: Hornblower & Weeks,

common

gram.

may

York; Wiliam R. Staats & Co., Los Angeles, Calif.;
California Co., San Francisco, Calif.
Bondi
be placed privately.

First

Tennessee Gas Transmission Co.
Dec. 29 it

was announced company plans a
public offer¬
ing in the first quarter of 1956 of a new issue of second
preferred stock. Stockholders on Feb. 7 will vote on
approving an authorized issue of 1,000,000 shares of this
new second preferred stock, which would be issued from
time to time, in series. Underwriters—Stone & Webster
Securities Corp. and White, Weld & Co. (jointly).

Nov.

Electric

28

it

Service

Co.

(2/28)

reported company plans to issue and
sell $10,000,000 first mortgage bonds due 1986. Proceeds
was

—To repay

bank loans and for

new construction. Under¬
by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; The First Boston
Corp.; Union Securities Corp.; Kuhn, Loeb & Co., Leh¬

writer—To be determined

Brothers and Blyth & Co., Inc. (jointly); Hemphill,
Noyes & Co. and Drexel & Co. (jointly); Kidder, Pea¬

man

body & Co. and Merrill Lynch, Pierce, Fenner & Beane
(jointly); Harriman Ripley & Co. Inc. and Stone &
Securities

Webster

scheduled
Texas
Oct.

it is

Feb.

Corp.

(jointly).

Bids

—

Tentatively

28.

Industries, Inc.

stockholders

11

shares

for

of

new

authorized

common

stock

(no

a

new

issue

of

30,000

value), of which
planned to initially issue 10,000 shares bearing a $5

share.

and

having

Proceeds—For

par

a redemption value
expansion program.

of $105 per
Underwrite*

—Rauscher, Pierce & Co., Inc., Dallas, Tex.
Planters

of 60,000 additional

pansion, costing about $23,500,000. Underwriter—Mor¬
gan Stanley & Co., New York.
\

Dec.

Commission for

from

Offering-

National Bank

Nov. 29 directors authorized

Pipe Line Co.

was

sought permission

company

Union

Plantation

Dec.

20

dividend

County Natural Gas Co.

outstanding bank loans and
Underwriters—Probably The

and Dean Witter & Co.
Expected during the first quarter of 1956.

Texas

(2/15)

was

Proceeds—For

Proceeds—To retire

First Boston Corp.

New

Dec. 19 it

company

an

for construction program.

and

—

27

mission

P. S.

Offshore Gathering Corp., Houston, Texas

Oct.

subsidiaries, Essex County Electric Co., Lowell Electric
Light Corp., Lawrence Electric Co., Haverhill Electric
Co. and Amesbury Electric
Light Co., into one company
during

(2/29)

reported that company plans to issue and

Nov.

Jan. 3 it
on

was

(Minn.)

sell some additional common stock (probably first to
stockholders). Underwriter—To be determined by com¬
petitive bidding. Probable bidders: The First Boston
Corp., Blyth & Co., Inc., and Kuhn, Loeb & Co. (joint¬
ly); Lehman Brothers and Riter & Co. (jointly); Smith,
Barney & Co.; White, Weld & Co. and Glore, Forgan
& Co. Bids—Expected to be received on Feb. 29.

common

announced company

was

finance purchase of four other truck lines.

Southern California Edison Co.
Northern States Power Co.

plans to issue and

sell $4,000,000 of first mortgage bonds and 40,000 shares
of preferred stock (par $100). Proceeds—To repay bank
loans and for

(

that the company is plannirtg'to issue and sell
:151,050"
additional shares of common stock. Proceeds—To
help

$10).

on or

Mississippi Power Co. (3/1)
was

★ Ryder System, Inc.
i
\
-f;
Ryder, President and; Chairman, announced

Jan. 9 J. A.

shares

(1/25)

000,000 from commercial banks, to be used to finance
construction of company's seventh aluminum reduction

;

—

Seattle-First National

Underwriters—Rauscher, Pierce & Co., Inc., and First
Southwest Co., both of Dallas, Texas.

are

be

subscription by common stockholders of
31, 1956 on the basis of one new share for
each seven shares held; rights to
expire on Feb. 14, 1956.
Price
To be supplied by amendment. Proceeds—For
improvements and working capital.
Underwriter—Kuhn,
Loeb & Co.,*New York.
1 ;
i

on

Northern

stock to

common

for

funding mortgage bonds. Proceeds—Together with funds
from sale of 1,100,000 additional shares of common stock
at $100 per share to American Telephone & Telegraph
Co., to be used to repay bank loans. Underwriter—To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co. BidsExpected to be received on March 27.

on

(1/31)

announced company expects to file
today
registration statement with the SEC cover¬

proposed issue of additional

a

Nov. 22 it

about Jan. 25 for the purchase from it of about $5,500,000
equipment trust certificates. Probable bidders: Halsey,

it

its

record Jan.

Co^3/2T)^

Bids

3

finance

—Blyth & Co., Inc., New York.

approving a proposed offering to stockholders of 150,000
additional shares of capital stock.
Price—$25 per share.

Nov.

ing

offered

Jan. 9 Keith S. McHugh, President, anneunced'^that the
directors have authorized the sale of $55,"000;00(I of re¬

was

to

was

Pont & Co., New York.

& Sons, Inc.

Riverton, Va.

plans

expansion, which, it is estimated, will cost between
$9,000,000 and $10,000,000, part by private placement, and
part publicly. Underwriter—J. C. Wheat &
Co., Rich¬
mond, Va.

(Jan. 12)

include " 1955

.

★ Lowenstein

Riverton Lime & Stone
Co., Inc.,
19 it was reported
company

Dec.

★ Royal McBee Corp.

the basis of $105 of debenture? for*each'$100 par
value of preferred stock, plus $5.25 in cash ($5 of which
will be paid as dividend on preferred for year 1955); and
(b) of $72,638,265 of new 5%'non-convertible general in¬
come mortgage *bonds, series B, dated Jan. 1, 1956, in
exchange for present $69,179,300 of 4^% convertible
general income mortgage bonds, series A, due July 1,
2022, on the basis of $105 of new series B bonds for each
$100 of series A bonds plus $5.25 in cash, which will

(

Inc. and Rey¬

Registration—Expected

next week.

Jan. 11 it

A,

expire on or about March 26, 1956. Price—Expected
be $12 per share. Registration—Planned for around

Feb. 10.

'

or

viding for the issuance (a) of not exceeding $58,131,150
of new unsecured non-convertible 100-year
5% deben¬
tures, dated Jan. 1, 1956, in exchange*fof pf#sbrit $55',363,000 par value 5% convertible- preferred--stock, Series

announced company plans to offer to its

was

York/ New Haven & Hartford RR.

Co., both of New York.

Dec. 21 stockholders approved .a plan of exchange pro¬

(2/29)

* L-O-F Glass Fibers Co.
Jan.

Inc.; Salomon Bros. & Hutzler; Kidder, Peabody

Thursday, January 12, 1950

the basis of

one

an offering to stockholder*
shares of capital stock (par $10) on

new

share for each

10 shares held Jan.

11, 1956; rights to expire on or about Feb. 1. Price—$35
per share.
Office — Memphis, Tenn. Underwriter —
Equitable Securities Corp., Nashville, Tenn. Meeting—
Stockholders were to vote Jan. 11 on increasing author¬
ized capital stock from $6,000,000 to $7,000,CCO.

Westcoast
Nov.

21

and sell

it

Transmission

was

publicly

reported
over

Co.,

company

plans

to

issue

$20,000,000 of securities, probably

in units of debentures and stock.
be placed

Ltd.
now

Bonds

are

expected to

privately. Proceeds—For new pipe line.
derwriter—Eastman, Dillon & Co., New York.

Un¬
_

Volume 183

Number 5498

...

The Commercial and Financial Chronicle

(203)

47

for

business
in
the
automobile
field this year will have
something
of a sobering effect on

With B. C.

prospective

Christopher

(Special to The Financial Chronicle)

buyers.

KANSAS CITY, Mo.—Eldon W.

NSTA

Smith, Barney Group

Notes

Offers Gen. Shoe Stock

Michaels is

with B. C. Christ¬

now

opher & Co., Board of Trade Bldg.,
members

of

Exchange.

the New York Stock

Mr. Michaels

was

pre¬

viously with Burke & MacDonald.

Public offering of 160,000 shares
cf

Activity in the corporate new
issue market continues at a snail's
pace but with

of

marked

growing indications
pickup toward the

of

month.

a

.end

the

Meantime,

underwriters

and

employing the

current lull to put

dealers

are

their houses in top shape
through
clearing away of remnants re-

maining

from recent opera-

over

tions.

secondary
-the

market
is

process

retailers

shoes, is being made today (Jan.
12)
by an investment, banking
headed

group

by

since

syndicates decided to turn
to

the price equivalent paid for them

,

,,

,

,

Reports indicate that the
and file of

:fact

dealers, helped by the

that

insurance

other

and
:

opened

rank

companies

big investors have

re-

their

books, have been
'making real strides in bailing out
.of inventories.

Moreover,
got

the

as

ests

able

were

straws-in -the

current

£

Shoe

1

said, to provide additional
working capital necessary to en-

to

point

wind,

-

inter¬

to

other

suggesting

that the firmer tone in the market
is
well-grounded.

Outstanding

these

among

-developments

in

the

the

SPRINGFIELD, Mo.

to

company

L.

During

borrower in the immediate future,
although what happens in the

Congressional tax action

naturally will have plenty of in¬
fluence

that score.

on

outlets

While
underwriters
have
not
been overburdened with
corporate

financing since mid-Decemdefinite indications

are

that

things
potential

are

looking

up

as

business is

new

con-

Already two large firms,
and

company

one

the

a

other

utility, have signified their in-

tentions of coming into the market
in a big way. Commercial Credit

Corp. has announced plans for an
issue, $50 million, which of course
will

fiscal year amounted

1955

to

standing

on

Dividends

floated

be

Treasurer—John

out¬

will

$2.50

stock

by the negotiated

route.

for

a

share

past

F. S.

nine

On Dec. 21, 1955, the com¬
that the board
of directors had,

approved

and

stock

First

of

the offerine
>

Inc°
The

Boston

Corp.; Goldman,
Co.; Ktdfter, Peabody &
Co.; Merrill Lynch, Pierce, Fenner
&
Beane; Union Securities
Corp.; A. G. Becker & Co. Inc.;
Hemphill, Noyes & Co.; Lee HigSachs

& Gardner; Alfred

of

mon

to

shares

stock,

cf

$100

par

the latter to

American

com-

be

Telephone,

sold

parent

firm
,

,

..

.

And there

.

,

.

current conjecture

is

suggesting that C. I. T. Financial

Corp.,
tion

may

to

be

giving

substantial

a

Ford

Focus

of

occupy

who

the attention
the

operate

chinery

pretty

of

much

the

to

ma¬

There is
of

market

a

disposition

people to put themselves

in cash to
pay

Newhard, Cook

for their subscrip¬

and

the

proverbial "bull-by-the tail",

those who

are

slated to take part

in the Ford distribution

are

ful

of

that

Ford

II

the

,

remarks

relative

to

the

,

hopeTT

Henry
outlook




Joins H. L. Robbins

their

Mass. — Thomas
L. Spinney has been added to the
staff of H. L. Robbins &

Co., Inc.,

been

Wise,

Hobbs

own

to

&

DIVIDEND NOTICES

THE COLUMBIA
GAS

SYSTEM, INC.

The Board of Directors has declared this

day the following regular quarterly
dividend:
Common Stock

1956.

follows:

share

February 15, 1956, to holders
close of business January 20,

on

at

_

H.E.Olson

,

Vice-President and Secretary

51

January 5, 1956

48^
,45V2

4214
40l/z
39

AMERICAN

38
38

37

AVISC0

VISCOSE

CORPORATION

36

33
31

Dividend

Notice

Directors

of

or

an

American

Viscose

January 4, 1956, declared

dend

•tar.

bill that includes the best

here with

the

Corporation at their regular meeting

farmers, farm organizations,
of Agriculture and
Congress, I
quickly.
up

Administration

on

of

the

fifty cents

(50<f)

stock,

common

divi¬

a

per

share

payable

on

February 1, 1956, to shareholders of
record

at

January

the

18,

close

of

business

on

1956.

WILLIAM

Vice President

II. BROWN

and

Treasurer

nothing,' then I will take

want

a

real solution to

political advantage
farm problems."

our

ticket.

good/year

DIVIDEND NOTICE

day declared the following

Barrington In v. Adds

With

(Special to The Financial Chronicle)

Lamont Dominick

change,
82.

passed

away

at

the

BOSTON, Mass.—Guy A. Mobiis with Palmer, Pollacchi &

lia

Co., 84 State Street.

With Geo. K. Baum

Lamont Dominick, former mem¬
ber of the New York Stock Ex¬
of

Palmer, Pollacchi

(Special to The Financial Chronicle)

Worth is with Barrington Invest¬
ments, 390 Main Street.

age

KANSAS CITY, Mo.—Robert P.

Thompson is now connected with
George K. Baum & Company, 1016
Baltimore

Avenue.

the

Seaver,

of the Boston Stock Exchange.

of record

of

'it's that
a

Lawrence

added

Inc., 15 Congress Street, members

payable

York, (STANY) Bowling

as

;

The Board of Directors to¬

(Special to The Financial Chronicle)

WORCESTER,

40 Pearl Street.""~

act

come

a

WORCESTER, Mass.—Harry R.

Exchanges.'

of

V'%

Bob Topol
Grampa Kaiser

Midwest

Realizing that they could have

Mass.—A

has

is John J. Hack Jr.,

Here is clear evidence of the
political atmosphere
into which the President's farm
program was intro¬
duced one day after Senator Ellender
had spoken
his piece. It was President Roosevelt
who a couple
of decades ago
blandly told the farmers to write

—

York

staff

starting at 2 p.m.
Co., is chairman of the

&

dinner party

—Senator Allen J. Ellender.

LOUIS, Mo. —Victor Jacquemin, Jr. is now connected with
Semple, Jacobs & Company, Inc.,
711 St. Charles
Street, members
New

can

they

ST.

the

South

5 Point Club

signal they

Semple Jacobs Adds"

Stock

tions for the Ford shares.

we

rather than

(Special to The Financial Chronicle)

of

the

they will accept

bill and
say
that as a

ex¬

selling in the stock
currently as based, in no

of

of Jan. 5, 1956 are

Department

"If

"

Olive
Streets, members of the
New York and Midwest Stock Ex¬

disposition to regard

small measure, on the
of many

the

LOUIS, Mo. — Joseph L.
McDonough is now connected with
Newhard, Cook & Co., Fourth &

the

Eastman

Write Their Own Ticket?
"If

& q0

clusion of all else.

much

as

think

changes.

BOSTON,
& Co.

Alleys

202

&

ST.

financing

of

202

With Wise, Hobbs

on

(Special to The Financial
Chronicle)

those

H.

staff

(Special to The Financial Chronicle)

Fuller

A. Roob is in
charge of hotel reser¬
Joseph G. Ballisch, A. C. Allyn &
Co., will handle

Janney Dulles & Co., Inc.; MasonHagan, Inc. and Yarnall, Biddle

Interest

ing sale of Ford Motor Co. stock
by the Ford Foundation continues

and

recommendations

issue.

new

chairman

Co., Inc., Arnhold andIS. Bleichr°eder> Inc.; jLdie" C°lllns & Co>

Joins

Hotel

225

£? ' Courts
& Co.; ^£e Robinson-Humphrey

'

Sherman

Jack Barker

considera¬

But for the present the impend-

to

Sharp

A.

inter-city bowling tournament

200 Point Club

p'^£'

refunding bonds, plus 1.1

new

Marquardt, William

Kipp, A. G. Becker

Will Krisam

ginson Corp.; Hayden, Stone &
Co.; Reynolds &jCo., Inc.; Stroud
& Co., Inc.;
Bacon, Whipple & Co.;

Co. has plans to issue $55 million

Darrel
the

—

joined

Potter & Co.,
Seventeenth Street.

year

_

&

Meantime, New York Telephone Newhard, Cook & Co.; Reinholdt

million

F.

(Capt.), Gold, Krumholz, Wechsler, Gersten
Krisam (Capt.),
Farrell, Clemence, Gronick, Flanagan
Bradley (Capt.), C. Murphy,
Voccolli, Rogers, Hunter
Meyer (Capt.), Corby, A. Frankel,
Swenson, Dawson Smith.
Growney (Capt.), Define, Alexander,
Montanye, Weseman
Manson (Capt.),
Jacobs, Barrett, Siegel, Yunker
Donadio (Capt.),
Brown, Rappa, Seijas, Demaye
Barker
(Capt.), Bernherg, H. Murphy, Whiting, McGovan___
Leinhardt (Capt.),
Bies, Pollack, Kuehoer, Fredericks
Topol (Capt.)';1 Eiger,
Nieman, Weissman, Forbes
Leone (Capt.),
Gavin, Fitzpatrick, Valentine,
Greenberg
Kaiser
(Capt.), Kullman, Werkmeister,
O'Connor, Strauss___

a share
quarterly!
annually on the presently
outstanding shares, including the
shares being offered today,

Blyth & Co
Securities Corp.;

has

Burns,

Serlen

$3

are:

coming

J.

the

D.

League standings

equal to 75 cents

group

formerly with

No. 86, HVii per

a share wiU be paid on the new
ghares; guch dividend would be

members

Coinitis

SECURITY TRADERS ASSOCIATION
OF NEW YORK
Security Traders Association of New

meeting on March 5, 1958,
quarterly dividend of 37% cents

other

J.

& Hutzler.

p.m.

annual

or

John

dinner reservations. A block of
rooms and suites have
been
reserved at the Drake Hotel for
out of town guests. A
cocktail
party will be held iirthe French Room at 6:00
p.m. followed by
dinner in the Gold Coast Room at
7:00

that, subject to approval of
split by stockholders at the

the

Baum

Roob, Salomon Bros.

Moseley & Co. Edward

the

two-

a

common

at

John

vations

announced

for-one split of the

held

General

paid on the

the

A.

bowling committee.

an-

cents

years.

pany

be

Jan. 30.

1£te of

B.

Coinitis, A. A. Harmet & Co.
The National
Security Traders Association will hold its com¬
mittee meetings on Jan. 29
and 30 at the Drake Hotel
in conjunc¬
tion with the dinner
party. Many of the Nation-wide affiliates
will be represented.
The usual

Oct. 31.
of

Norman

Secretary—Norman B. Baum, Cruttenden

preferred
share on the

common

Marquardt

Vice-President—Jerome

after

dividends to $4.62 a
1,074,329 shares of

F.

& Co.

$5,-

equa 1

C. Mor¬

j

the

262,135,

J.

President—Edward

\

in

Equitable

,

a

and

Gottsch

Roob

following officers have been elected for the
and will be installed at the
party:

the

subsidiaries

company

A.

The

Consolidated net income of the

far

cerned.

finance

OMAHA, Neb.
Edward

increased from 212 to
526,
-

1955 fiscal year.

was

Joins Burns, Potter

31, 1950.
period the

year

Thomas

—

with B.

now

He

(Special to The Financial Chronicle)

Oct.

including 48 outlets added in

a

Things Looking Un
Looking up

ber, there

five

is

& Co.

King Merritt & Co., Inc.

numi,er of plants operated
by the
company increased from 23 to 41
whjQe company-operated retail

common

firming here was taken as
perhaps suggesting that the Treas¬
ury is not likely to be a long-term

as

the

ended

quarterly, have been

The

new

year

long

3% bonds.

'matter of

Walsh

ton

was

Treasury's

of

West

With B. C. Morton

,

the rather marked strength which

developed

15315

(Special to The Financial Chronicle)

J ™ °r£i£ *n ?

week

investment

underway,

Company,

G.

McNichols Road.

Net proceeds from the sale of
the shares will be used, General

fiscal

least

&

Per share,

although not fully to the reoffer-

at

recovered

Mich. — Frank
joined the staff

has

Ashton

& Co- The stock is Priced at $60-50

ing prices

have

DETROIT,
Smith

Smith, Barney

° approximately
^
o-.1?*
fisca* year
ended Oct. 31, 19o5 compared with
approximately $84,400,000 for the

-loose,

(Special to The Financial Chronicle)

years net sales of General Shoe
lncreased by almost 100%,

effect

which

the

With Ashton & Co.

The Bond Traders Club of
Chicago will hold their annual
mid-winter dinner party at the Drake
Hotel on Monday, Jan.
30,
1956.

of

healthy
bonds,

a

of

and

that

indicates

many

country's largest

keep pace
wlth continuing demand for its
Products
During the past five

issues in the

having

one of the

manufacturers

able

Behavior of these

BOND TRADERS CLUB OF
CHICAGO

stock of General Shoe

common

Corp.,
-

dividend:
60 cents per

Common
March

holders

share

Stock,

on

the

payable

15, 1956 to stock¬
of record

at

the

close of business February

15, 1956.

,

The Goodyear Tire & Rubber Co.

By Arden E. Firestone,
Secretary

January 11, 1956
the greatest name in rubber

43

The Commercial and Financial

(204)

Chronicle.:.Thursday, January 12, 1956

tion of construction. This would

BUSINESS BUZZ

the

evaporate
those

who

predictions

have

said

highway scheme

on

#

"on

•

tap"
spending

objective

to

in

money

of
the

that

be

to

was

an

for

use

of

case

a

business

Behind-the-Scene

decline, or that the
President might withhold or de¬
lay construction, if he had his
way, while steel, cement, and

And You

SfCapital

from the Nation's

labor

WASHINGTON, D. C.—Presi¬
Eisenhower's opening or

plicit in the whole message is
the inescapable conclusion that

dent

Annual
sets

Congress

to

message

forth, of course, the main
of
Administration

programs.
These
intended not only for Con¬

the

foreseeable

boundaries

policies
are

and

let

their

work upon, but as the
Administration's bid for a fresh

gress to

great
could

not

be

"Fiscal

present even without
tion

the promised

of

is

down

the addi¬

will

several

do

proposals under five main head¬
ings. If the sequence the Presi¬

"Trouble

social problems.

uses

to different

minor

subjects, then world

liable to

I'm

is

GO before

the

in

message

are

is

the

I

Vetoes Tax Cut

lows:

Probaly the outstanding pol¬

adopted

the President

by

of the

for tax reduction.
The President seemed to offer
no
actual or contingent hope
that taxes will be reduced now
or in the foreseeable future. He
did not even suggest a post¬
of early 1955

(3)

Better medical

business

More

and

Civil

other

Eisenhower

further,

for

asked

the

as

con¬

.

presently technically-tem¬

higher rates of taxation
on corporation income,; and the
rates of excises on motor ve-

porary

damage

indemni¬

to

areas

about

of

cost

of local

or

J

Presi¬

the

which bears on
of

absence

the

any

President

the

that

Stanley
the

see
and

big

bad

the

N.

Barnes,
Divi¬

Anti-trust

who

can

of Jus¬

growl

effectively

most

monopolies.

school

all

but absent.

Collective

Security "Gains"

Continuation of the large
Federal subsidies for building -J

Primary Markets

and

UNITED STATES

operating schools in "Fed-

erally-impacted" areas.
(13) Health operations; several facets, including construc¬
facilities

of

tion

LITHIUM CORP.

schools and

power

etc., the
optimistic

collective

entire

the

last

world has

seen

"In

system

rity

se¬

fact,

he

In

.

.

the

year,

free

major gains for

collective

of

dependent children and

."

is

not

losing

bear

That

the

ground

is

point

which

domestic

on

strengthen

ably

also

to

benefits).

government

get

^

coincide with
views.]

and may or may not

of

the

the "Chronicle's"

own

this

holds

President

optimistic view

trans¬

[This column is intended to re¬
flect the "behind the scene" inter¬
pretation from the nation's Capital

present

ask

While lay observers

note the
gradual retreat of the Western
World before the fresh intrigues
and
disturbances fostered
by

to

seem

not

to

Congress

military

suggest that he

come

power

forward

revise

and

S.

U.

drastically

up¬

ward, with the manifold impli¬
cations

this

would

have

upon

the current boom economy.

The
President, however,
clearly indicates his disillusion¬
of hopes resulting from
the July "summit" Geneva con¬
ment

ference.

Manuscripts

Book

tion

His Highway Pitch
In

his plea for a
vast program to construct and
re-construct 40,000 miles of in¬
renewing

highways, the President

avoided for the time being sug¬

gesting how money for these
highways should be provided.
He said only that they should

"adequately financed."

On the other hand, the Presi¬
dent emphasized that
the program

CN

request

—

promo¬
of books

Vantage

Press,

Inc., 120 West 31st Street, New

York, N. Y.
Club
to

Member's
Club

Handbook:

Activities

mentary Procedure

and
—

Guide

Parlia¬

Lucy R.

Milligan and Harold V. Milligan
Barnes &
Noble, Inc., 105
Fifth Avenue, New York 3, N. Y.
—

(paper), $1.50.

he wanted

to go forward with¬

interruption to the comple-

out

Booklet

distribution

and

on

—

—

publication,

describing

TRADING MARKETS

*

Fashion Park

medical

for

nation's

the

portation facilities; to broaden
insurance against medical costs;
and to provide foreigners with a
chance to immigrate more freely
into the U. S. (quite conceiv¬

policy.

the

not

will

pational safety; to protect the
safety of pension funds; to en¬
courage construction of housing
of many varieties; to give cer¬
tain wage earners the benefits
of
the
Wage- Hour
act;
to

secu¬

Whether collective security is

be

construction.

(12)

Army, the

stated:

terstate

monopoly question were al¬

most

the

French gov¬

worse

concept.

would

Mr. Eisenhower's remarks on

interstate
highway construction program.
(11) Federal undertaking of
share

to

loudest

of chronic unem¬

ployment.
(10) A "vigorous"

a

of

tice,

(9) Technical and loan assist¬
ance

of

sion of the Department

ties.

of

whose

areas

keystone of U. S. foreign policy,

facet

is

of

Chief

Flood

(8)

1956

Administration
into
the
present
competition
between, on the one hand, Sen¬
ator Joseph C. O'Mahoney (D.,
Wyo.) and Chairman Emanuel
Celler (D., N. Y.), and on the

military

for

money

fiscals

bal¬

future

will project the

Defense.

Extension

tinuation for one more year
the

for

a

in

budget

message

indication

personnel dependents.
(7)

expected,

benefits

survivor

would.

Mr.

Another

dent's

of

substan¬

a

instability,

the

curity

would

water

care

the

Avoids Anti-trust IssueV ;

in¬

Information Agency

(6)

for

remote

are

of

beyond
maybe 1957.

Additional funds for U. S.
(new).

(5)

ernmental

perhaps

years

"conservation" projects.

water

further and

or

ance

specific

of

Approval

(4)

in

not support them;

security and add unspe¬
advantages
thereto;
to
help states promote more occu¬

Africa, the current threat of

the

budget.

add additional evi¬
suggesting that the

chances

conservation program. -

ponement until later this fiscal
year of the subject of tax re¬
duction, as some thought he

Tax

comprehensive

in

dence

"

A

1957

failure

make

tive start with their

programs

of

(2) A much heavier farm
come subsidy
(new).

after the fis¬

In any case, the President's
ambitious spending and welfare

nomic aid program

withdrawal
conditional commitment

program

or

new

the
to

President appears

not show up until

A long-term foreign eco¬
(new).

(1)

standpoint of business

and finance was his

Reds,

about

more.

.

broad

will take a year for
expanded spending
programs
to get organized, so
that
actual
outpayments
will

(most of
earlier
recommendations), are as fol¬
spending
proposals
reaffirmations

them

of

(2) It

the

Eisenhower's major

Mr.

cems."

from the

this

may

will pass, or

Spending Aims

Major

Economyr
"The Response to Human Con-

can

social

PAY!"

can

miring of French military

be that the White
little expectation that

cal

"Fiscal Integrity."

icy

or

space

contin¬

two

upon

much

proposal—they are that numer¬
ous.
They would take up the
of

Germans

to be

House has

would

of

1957

(1) It

for¬

so

as

"To Foster A Strong

,;V:"

major

the

as

with summariz¬
ing the President's message and
instead merely give a sentence
or
so
to
each such spending

balance

the

predicated
gencies:

or

have to stop off

follows:

"The Constant Improvement
National Security."

economic

The list of the

proposals

spending

balanced budget for
would appear

a

fiscal

midable that this column

For the
No. 1 heading is "The Discharge
of Our World Responsibility."
Other headings in the sequence
aid is his first concern.

used

well

as

posal" of

solve one or

group's

another

is any indication of
the relative weight he attaches

dent

to

cified

President went
spend¬

proposals to

ing

va¬

the mentally retarded; to extend

forward to list scores of

his

groups

aid

to

the

saved for his

Thereafter the

Eisenhower

Mr.

of several

unemployment";

schools

economies

security and old age.

Organization

resources

chronic

better

manner,

depreciate

to

re¬

help small business; to provide

pension funds and all

everyone

money

the farm problem.

orthodox

be

of

value

like this week's special message
on

the

most

was

government's

disasters; to wipe out "pockets
of

otherwise, the President said

would

forthcoming,

be

on

the

nities; to cushion the damage of

budget

in

de¬

more

nation's

and pay
the Federal debt. To
its

balance

to

orthodoxy, it
piece to his

about

praising
however, the
President said the government
must intervene to help farmers
get more income; to develop the

"trustee" re¬
sponsibility of the government

special messages of which

tailed

economic

companion

While philosophically

might use on the

they impinge on business. The
length and numerical diver¬

.

In

the free economy,

Presi¬

the

time

same

.

.

re¬

prospect

a

fiscal 1957.

strongest kind of an argument
a
most conservative individual

re-reading, that there may be a
benefit in summarizing them as

sity and variety of proposals

shall propose"

under
the
heading of
Integrity"
gave
the

dent,

digested properly
of reading and

hours

without

the

At

which

proposals

many

"I

balanced budget for

production

responsibility as a trustee not
only to balance the budget but
to pay down on the debt.

the current year's
to be
balanced, and

that

added

replete with such a very

that "I

said

.

.

plan, organize,
of

a

Eisenhower

expect"
budget

words.

9,000

and

8,000

distribute

to

(spurring the)
its

Mr.

a

ward for successful effort."

marks

present occupant of the White
House, it is long. Only this one
Is a little longer, running be¬
so

to

lower

and

markets

and

"Balanced Budget"

Like all such messages by the

tween

.

free

to

levels.

electoral mandate.

It is

"permanent"

supply.

President Eisenhower wrote

when

date

future

government can afford
these
rates drop back

in such short

ringing praise of the "competi¬
tive enterprise system
using

will not come at any

time

the

are

For "Free Economy"

hides, tobacco^ and liquor. Im¬

Indian Head Mills

research, and health

.1

re-insurance.

W. L. Maxson Co.

More public housing and
subsidies
for
urban
planning,
(14)

more

money

Morgan Engineering

for mortgage sup¬

National

port, more government loan in¬
authorization.

surance

Julius Maier Co., Inc.
15

Exchange Place, Jersey City 2, N. J.
BOwling Green 9-4058
HEnderson

5-1300

Balancing Elusive
While
fair
ance

the
Teletype

JCY

798




>

there

chance

of

the

current

swelling
the above

posals,

of

>

Carl Marks
FOREIGN

to be a
hairline bal¬

appears
a

Federal

fiscal

budget in

year

due

to

in view of«
list of spending pro¬

SECURITIES

50 BROAD STREET

TEL:

•

Co Inc.

SPECIALISTS

NEW YORK 4, N. Y.

HANOVER 2-0050

revenues,

Mr. Eisenhower's "pro-

&

TELETYPE NY 1-971

Riverside

LERNER & GO.
Investment Securities

10 Post Office

Square, Boston 9, Mass.

Telephone

[HZHZl.

Co.

Cement

HUbbard 2-1990

Teletype
BS 69