Full text of Commercial and Financial Chronicle : January 17, 1957, Vol. 185, No. 5604, Section 1

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ANNUAL REVIEW AND OUTLOOK ISSUE

S^'M^sity
OF

MICHIGAN

JAN
J

T

1819571
*

■*

m fr *

PERIODICAL
READING room

Chronicle

inancial

Re*. 0. 8, Pat, Office

Number 5604

185

olume

New York 7, N.
Y.,

Thursday, January 17, 1957

Price $1.50

Copy

a

ditorial

What's Ahead in the

We See It

As

the year

Business and Finance Speaks

Securities Market

ahead

After Turn of the Year

By EDMUND W. TABELL*
Director of Institutional
Research, Walston & Co., Inc.
:
Members New York Stock Exchange

broad, basic questions confront all stu¬
dents of the current economic situation and all
Two

LOOK

in 530-430 range

area

and

ers

the

questions finds
an affirmative

easy

more

in the second.

There

can

be

no

mons

once

doubt about the fact that cur¬

around

overall

the

countryside for
the subject and

of

coverage

brevity.

When asked for the

for

Vigorous
Last

"first,

I

tells

to tell them.

finally,
them."
mula
I

reason

tells

I
I

them what

think

here.

I'm

the

In

them

what

will

I

much

are

investor

fundamental

important

more

than the

tell you that

by

the

Commerce, Jam 9,

before

has

been

particularly impor¬

the

the Los

years

the

Antitrust

2,135 reports of acquisitions.
have
from

In 1955,

in' 1956, six proceedings
challenged mergers.
Judging
current trends, 1957 will see a
and

A number of other

Edmund W. Tabell

in

time.

I

am

going

on

page

36

1956.

The

highly significant

attacked such traditional "hardcore" violations

be

Continued

STATE

and

tND

BONDS

SECURITIES

FOR 1957"
DEPARTMENT

BOND

ON REQUEST

THE FIRST NATIONAL CITY BANK

BANK
MEMBERS NEW

15

BROAD

YORK AND

STREET, NEW

AMERICAN STOCK

E*C"^GE*

YORK 5,
TELETYPE

COBURNHAM

*££

Teletypes NY 1-708

Net Active Markets
To Dealers,

T. l.Watson
Members
New

York Stock

Exchange

Stock Exchange

25 BROAD

STREET

NEW YORK

4, N. Y.

WIRES TO

•

PERTH AMBOY

NEW

YORK

Knox

Class A Common Stock
Analyaia
oar

upon request to
Ufiliated Trading Dapt,

(Room 707)

DoTADnojf Securities

MONTREAL AND TORONTO

1 NORTH LA SALLE ST.
CHICAGO

Corporation

BONDS & STOCKS

Grporatioti

Goodbody a Co.
115 BROADWAY

bank

DEPARTMENT

MEMBERS NEW YORK STOCK EXCHANGE

BRIDGEPORT

CANADIAN

Orders Executed On All

Teletype NY 1-2270
DIRECT

Chase Manhattan

Maintained

Canadian Exohanges At Regular Rates
CANADIAN

American

Exchange

Banks and Brokers

SECURITIES
Commission

Stock

BROADWAY, NEW YORK 5

34 offices from coast to coast

CANADIAN

&Co.

1832

ESTABLISHED

Members New York

120

Bond Dept.

THE

Harris, Upham & C2

OF NEW YORK

Company

Burnham and
CABLE:




Bonds and Notes

ARE NOW AVAILABLE

CORN EXCHANGE

INSURANCE STOCKS

Housing Agency

"MARKET OUTLOOK

INVESTME NT

BANK AND

Public

COPIES OF OUR

CHEMICAL

ST., N.Y.

40

State, Municipal

w

MUNICIPAL

DISTRIBUTORS

.

department

page

OUTLOOK ISSUE we
dealings oc¬

UNDERWRITERS

Municipal

of

bond

on

and

telephone: HAnover 2-3700

30 BROAD

as

tolerated.

U. S. Government,

Securities

cases

fixing, boycotts and allocation of customers or territor¬
ies. So clearly at odds with the fundamentals of a com¬
petitive economy, these activities cannot and will not

Angeles Chamber of

ANNUAL REVIEW AND

filed
have
price-

cases were

majority of the Department's

in

State and

Herbert Brownell, Jr.

similar emphasis.

1957.

SECTION of today's

of

.

past few years has been

four

past

five,

I believe that business,- labor and gov¬
realistic approach to

Tabell

enforcement

laws.

Division has reviewed approximately

short term uncer¬

Mr.

will

in the field of corporate mergers. In

Continued
address

enforcement

in

vigorous

tant in the

forces

to

antitrust

phase of antitrust enforcement

which

•

these

that

and

/

same

antitrust

One

told

,

BROWNELL, JR.

effective

high and low prices of every stock and bond issue in which
curred on the New York Stock Exchange during 1956.

DEALERS

of

1956, 46 antitrust cases were filed. I
high level of activity in the coming
Believing that competition in

for¬

I

that

use

the
*

And

going to tell you that the
long range basic forces that have
brought about the enormous increase
in economic activity since*'1946 will
continue to exert powerful pressure
on the economy over the years ahead

SECOND

show monthly

up-to-

course

1957.

year,

tinuously

going

Then, I tell them.

ernment will have to adopt a more

47

to the indicated

a free economy opens unrivaled
op¬
portunity and brings the greatest
good to the greatest ^number, the
Administration is pledged to a con¬

their

am

♦An

page

as

HERBERT

and

in

for the

year.

their

sermonizing, he
the following formula: He said,

gave

quite clear that no indications are in
early decline. So much higher
on

business

Attorney General of United States

successful

his

evidence of any

Continued

official views

HON.

old Southern preacher whose ser¬

an

noted

were

tainties that will crop up from time to

output, all taken together, is at a record level.

It is also

was

complete

to

rent

to the probable trend of

These forecasts, written especially

continue

extreme

constructive.

is

as

year.

outlook for both business and the market is
extremely

There

nearly unanimous to the first than
Despite the fact that the boom has
been under way, with only minor pauses, for an
unusual length of time, few seem to be disposed
to very much doubt about its continuance for a
good many months to come. On the other hand,
the persistent upward tendency in prices, rising
labor costs, large and increasing general indebted¬
ness, creeping enlargement of governmental out¬
lays, insistent general effort to buy more and
more in the face of
something approaching full
utilization of resources, all seem to a good many
to suggest the
possibility of untoward conditions
in the
making.
4
probably

government

business in all industries. The statements begin herewith:

or

response

of

seleclivity, favoring airconditioning, aircraft, airlines, cement, coal, drug, elec¬
trical equipment,
machinery, metals, natural gas, oil,
and steel groups; comprising
defense, labor-saving or
wealth-in-the-ground areas. Over the next decade, holds

difficulty?

an

opinions

CHRONICLE, pr'ovide the reader with

the-minute

look

but

financiers

current

the

for

for the Dow-Jones Industrial Aver¬

Stresses need for

age.

Can the present rather feverish activity be
long sustained without generating factors which

these

individual

in

financing needs.
envisages a wide trading

The other is:

of

the

ISSUE

Notes problems posed
by taxation and
For the 1957 stock market he

breaking rate of-gen¬
eral business activity prove sustainable through¬
out the course of 1957, or the larger part of it?

answer,

CHRON¬

the

officials and of the country's leading industrialists, hank¬

Will the current record

Neither

years,

in today's ANNUAL REVIEW AND OUT¬

analyst maintains major economic trends are
favorable, excepting for the wage-price inflation spiral.

normally
affected if not controlled by estimates of the
events of the coming year. One of them is:
-

certain

of former

custom

our

ICLE features

Market

those who must reach business decisions

must sooner or later result in serious

Continuing

40

Exchange Place, New York 5, N.Y.

Teletype NY 1-702-3

WHitehall 4-8161

IRA HAUPT & CO.
itembers New York Stock Exchange
and othor Principal Exchangaa

111

Broadway, N. y. i

WOrth 4-6000

Teletype NY 1-270S

.

For Banks,

of

advantage

our

-

,

jt, are

States.

have

a

trading

Oil and

problem, don't limit yourself to
regional service. Our large trad¬
ing department and extensive,
facilities not only broaden your
potential markets—they also as¬
sure you of
accurate executions

A

fitting

,

time and time

tion continue O & G may

charged

per-

120 Broadway, New York 5

early 40's.

Teletype NY 1-40

WQrth 4-2300

O &

•

CHICAGO

PHILADELPHIA

•

SAN FRANCISCO

Wires

to

BOSTON

Private

«

invest•menf trusts, etc. The -underwriting fee on the sale amounted to
about % of 1%.
An additional

-

G was
.

oil

properties. The manage¬
ment is of the highest caliber and

-Direct wires to

STOCKS

thnes

after

times

a. many

houses,

of

shares

80,000

that

_pjl
^

were

common

in

York Stock Exchange
American .Stock Exchange

BROADWAY, NEW YORK S

mortgages

come

3 tingyish

New

TEL. REctor 2-7815

exclusive

l!llll!l!l!!llll!llllllll!

for

with

income,

rental

that ^portion needed

of

operating

utilized

expenses,

for mortgage reduction.
laws

Trading Markets

.Call

-

-

ROBERT D. TUCKER
promoting group with
the Empire Trust reputedly- own- :
-f
Department
:
ing over 50,000 shares m a su Morgan .& Co., Lo$< Angeles, .Calif
sidiary
Large issues -of wafrapts
M
b^. LoV Angeles Stock Exchange
and options are conspicuous by
;
®
their absence.
'
" - Century, Engineers, Inc.
1

facilitate

this

The tax

method

Item

Bank of Virginia

very

Gross Reserves

Oil & Plant

The .tabl$ below
.showspthe sub-'
stantial"reserves of*the->r<?orilpiahy

the

illustrates

and

of

sibilities

crease

dynamic

Gas

—

The net

Gas Company

from

reflect

gross

sufficient

to

the

reserves

retire

.

should

even

several
to

of

Figures

based

are

the

on

1955

there bus been little change since

large

reduction

oil

payments
are

million
the

..

of Net Reserves

S73;150.000 ( S2.75'bbl. )

payout
less than
f7 •J

is

It

^

'
to

inc..

rnis

J

.

:T

Company, Limited

small

WISENER
r■

o r

73

olihnl»vnn«+nJ

company, also

whiSerpnrAcpnt
represent

Sugar

which

ttacioig

Corp. of Calif.

1930

•

Y. Tel- HAnover 2-4850

^

.

Burns Bros. & Denton,

'

the

From

:

1949

Undertcr iters—Distributors

beginning

i

j

Exploration

:

!

Sulphur

CAPPER & CO.

j

Jersey City, N. J.

NEnderson 2-8570—N.Y.i Dlgby9-3424

Teletyoe JCY t|9




less

xnan

tniro

a

irilhon, this plan has been closelv
closely
The
engineering

thnso

Investment Securities

350 peo-

lrntion..

*

Caftadian arid Domestic

On the other hand, followed,

thev had invested only about half

]'

'

■

scientific

personnel

at

Century,

^

$14.

thfS

million

nnrl

in

_

The-380
have

a

f^w"^

Ut

'■

<2,

total

1
arithmetic of the picture, fascinating. An increase in the price of
oil of 15 cents per barrel or 1 cent
per MCF in the case of gas is

to

kSeise

per

ma

Acoustica Associates

f exchange Pl„

aiso

O & G.

°^an-

Dealers

gross Approximately $6.8r>i»n >.ac

"

were

to

command

valuation, it would
of over $35 per
.

mean

share

0 & G also owns

? o£

only the

a

;

half

same

price

a
-

.

1

inteW;

activity.

v>

Tneir„

.

At the end of 1955 the company
had about $49-million of oil ^payments and about $17-million of
loans and debentures ahead of the

380,000 shares of

common.

$33 million of the payments. is applicable to one property and it - is important to note
that payments

are

obligations of

-

•

.

.m

concession on twohas jdesigned 3nd prpduced
faring' 40,OW) ywous airhorne.rocket launchers',

N. Q. B.

-

.

will, vndoubtedlv delay test-,'! a> Electro-mechanical ni»i
ing this area. Offsetting this plus sion: This field includes nrpmoi^
potential m the picture is a mirius ^data recording camera^ dS -devices and varinuflm-tA
hisms.
Details
of
trip
JUn
prices, items in this field
O & G's oosition has been"-moheld
'? • d are classified-

0VER-THE-C08HTEH

potential in that the largest propof O & G is i n v o 1 v e d in

Ho\V- -litigation

ever, over

Ul

•.

uitimate aim Of haying overall :"
systeiTls capability for a compljete-'
T.e^n system is presently." sub^dlvlde<3 into the following fields:

valu?w«uW be eeual to f.<,u?re miles
a lat-ge
.sizes of rockets now: fn
flmost 400% oHhe currrat total baSU) areau' Geological reports Production. Also launchers and
Set prrce of thefomS1
are favorable although Sufez ,fan- Pylons for inissiles.
■
™
ket orira of the common.
rest

Philippine Oil Oevpt.

Culf

"*

a.an,J theji' net rgselves pie will
also less than
third those

1°C,reaSe ^

SUOSia
substantially —
Ciaiiy.

price 50 crate
gaih in

Cavendish Uranium

Mexican

^

?35 mnlfon fir ^ their eC[Uity money so it is not are men who are well qualified oferathm Snses and possibte -° be
they \Vare do- to: discuss theoretical/.problems?,,
taxes itHl leaves
Srtentfa? fo? 1 g
bojreroov
of investing tlte with military scientists one irfna
pM^rfater
SS
labrieation prob-

to

IRadorock Resources

Dakamont

-

Inc.

f .11 Str.«», New Y»rl S, N. T.

Allowing

nixt few^m'were

Federal Uranium
Doman Helicopter

■

'

-.

-4- Toronto, Canada

a

L. IVIaxson

Seminole Oil

roducts, 0f
re-

half the oil

AU_;
their

COMPANY

v*-!

over

^
G and

~ "
were

AND

limited V

years

million nf
equity capital although; it didn't

WPrP

■

TRADING DEPT. TlMptre 3r8204

of

started with; about $10

O
q &

■.

King St, West

was
s

.a

.

compa¬

the bas i

"'

i

the gross values in
the last column 01 tne table and
1 column of the tame

—

TRANSMISSION

compa¬

beginning and its early activity.
However, it soon became evident
''
V
"
tbat to;take advantage of the creconinare shflllln
ative ubility' of the, engineers they
"

■

of

WESTCOAST

these is

three *

Trading Markets

Maintained in

All the Securities

en¬

.

partment f

expenseV^f course mustfbe de- S dav"a#ain,t°Ut'2,200 •bari^' ization of » total
of cour% must, he d"-.
p€r
day against
7,000 for 1956 when approximately
ducted from

Breeue^dCompom)

^

C Ortlandt 7-5680I

the company's

Currently °

on

interesting

expenses

ace

^

70 Branchet

the:

nies. This

$17,982,000 ( 90 MCF)

-

in 1955 alone.

probably
away. ;

in-

Firm

ell

..overall
engi.irieeringldeA;
Esti. Gross Value

average

s,

Trading Markets

37 Wall St., N.

1997
—

Investment Bankers

&

111 Broadway, N.Y. 6

iw ^°-n -^ot under Avay until early ,1955. wherein three engineers produced
bentures^wiThlnteresf^Oneratine At a recePt da^e PFs Production a total gross revenue of $36,000 to

ESTABLISHED

-

nies .and -the

7

that date.

199,800.000 MCF

and

payments have beenJ liquidated,
Accofdmgly, it inay be estimated

nint

W.

Office Tokyo

Brokers

37

LD 33

Juan

Established

,

"

gineering de¬
partment; fOT

annual report and we understand

_

Lynchburg, Va.

San

■

;

Home

fields

be;

over-flow

in¬

no

in oil and gas prices occur.

26,600.000 blrls.

of. amounts

The debentures

and loans.

Scott, Horner &
Mason, Inc.

for stock

reserves

debentures

Southeastern Telephone Co.

Trans Ocean

—

'

qualified in

pos¬

small- issue

the

stock

common

for Stk. & Debs.

:<8.0'7.oo(j bb's.
500,957,000 MCF

Product?

Alabama-Tennessee Natural

Allegre

write

Yamaichi

The equity money of O & G *
renturv Engineers is a highly.
was invested by the end of 1954. compe.tent technical organization

■<

Punta

or,

Securities Co., Ltd.
-

Net Reserve

Air Control Products, Inc.

Mills

years

appear to

For current information

;

v'

*'•',

practically

at

he* stirring due
ito improved Japanese economy.'
now

^

exposing the
smaller maximum: loss, j

remaining

stationary levels for three

.

w

early years used, to ex-these
payments.
This
method might be compared to real
estate purchased subject to large

Botany

branch offices

our

JAPANESE

los®. A.

gain.than

the Empire's reputation and ex-41
—Thus the company, hasv acquired
perience in oil matters has un¬
whi^ was, formed in 1949 with
its
properties
on %a
somewhat the
doubtedly been of considerable
express
aim of getting to^ore rpnponoble basis than might,
value. Purchases have been made
g e t her
a
be
expected at current higher
subject
to substantial
oil navgroup of engiments with a large portion of in¬ prices for oil in the ground v
ne er s

Members

Tele. LY 62

NY 1-1557

•

——™

McDonnell & Co.

,

HAnover 2-0700

-

NewOrleans,La.- Birmingham. Ah
Mobile, Ala.

Behind.
Behi

.

and gas

Since 1917

120

■

19 Rector St.r Mew York 9, N. Y.

.

Warren '£." Biiffett

pire Trust to
buy and manage j producing

SCRIP

Yxchanat

Members' American Stock Xxchanat

sold to the

„

&

wall Street

with

with the Em¬

RIGHTS

'" : r
inflation continue;

300,000 -shares of stock: at-r\chanees forfached* This issue was1 exception.jillv wpll
nlaced in large blocks do
the job

1953 by inter¬
ests affiliated.;

| Specialists in

Members new York Stock

y

^10':milUoh''iheoineu'"debiBntures';rs^^^to off^cpnadqY|hl^highw

of

organized in

Principal Cities

'

.nolshould

with-

warrants
d id' in the!;

,

^

■ ^

*

.

that '

and

».

:

(Page 2)

Steiner, Rouse &c

c^ny 6 ^ ^■

Se

ment trusts

Stock Exchange

American

■

Vt

*Tr^mH~lhrbV(orestcd reader $65 million of obligations with an
$65
ol

n

lever-'
aged invest¬

Member

Associate
*

well be

highly

V»

iJa-

T

super¬

formance

1920

Inc.—Robert

Tucker, Research Dept., Morr'!
*
Co
Los Angeles," €aiif A

v.

invesio.r the /

•

D

Bought—Sold-^-Quoted

....

\

.

Cen^ury Engineers,

oaot/sbow ac-.

financialI

the

s a m^e

(Page.2)

applied-tq. oil

the result is- to
small gross .income

Omaha,- Neb,

vestment. Groups,

:

my

the vehicle to

give

'

very

a

selection would be "The Inflation

again.

Established

for

title

show

Hedge I Like Best." Should infla-

NewYorkHanseatic
»

Management, Inc.

Gas Property

more

counti n'g-wi se,

Louisiana Securities

Gas* Property Manage¬
ment, Inc.-—Warren. E. Biiffett,
'
Manager, General Private. Iri-

•

by allowing all payments as a <hrect exclusion from income. Ac-

Alabama &

and

Oil

intended tp he, nor
sell the securities discussed.)

considerably when

Manager, Several Private Investment
Groups, Omaha, Neb.
»-

dealers

Next time you

they to be regarded, as an offer to

WARREN E. BUFFETT

reaching banks, brokers and
throughout the United

age,.

particular security-

a

(Tlie articles contained in this fornm are not

of private

and blanket cover¬

service

for favoring

participate and give their reasons

.

Participants arid

their Selections

each week, .a different group of experts
and advisory held from all sections of the country

fin the investment

Ttlfe Week's

•

v

nation¬
wiresaffording traders fast and reli¬

able

Volu

•Forum

A continuous Jorum in /which,

Try "HANSEAT1C"
network

I

The

Brokers, Dealers only

Coyer the Entire Nation

wide

17( 1951

)

(193)

Take

Chronicle... Thursday; January

Commercial arid-FincmcitiI

The
Z

concerning

ni

gas

18-Year Performance

-

-

by the FPC: however, the matter Aircraft Structures: Cenis now before the courts.
j I
tury Engineers has participated in
O & Q-common, selling around

only the specific property, not the414 inThe Over-the-Cou^ter MafThe balance of pay- ket, should do very well if pres-

company.

ments amounted to-less than $16 ent oil prices are maintained and
million and were reduced by $4 presents outstanding
possibilities

the

design -of

components
■

°

nf

maior
™

^

.

structural

current military
Continued

on

FOLDER ON.

of

Stocks

REQUEST

structural

Thev have designed

alrcr

35 Industrial

and

National Quotation Borean
Incorporated
46 Front Street

page

.

16

y

NewY«*4.!«.*

Number 5604

185

Volume

•

; ;

The Commercial
and Financial
Chronicle

.

/

(199)

•

The Future oi Interest Rales
By BENJAMIN M.

ANDERSON,

j

.

.

of 'inflation'

.

.

have

V.

v

:

return- to

financial

of its timeliness and

publish

forecast

X

•

I think that it is not

an

on

^Electronics

•

Overcoming Our Advantage;

:
r-

hands

There is

•

cal issue here
I

experi¬

which

lars

ratesis
t

r a r

Where

all

tens

deposits and

Interest Rate Rise

can

Real

and

Savings

of

X Starting

sooner

in

the

in

the

precipitates

of

serve

.

as

sub¬

a

If

question
R

'

-

months, of

have

past

al¬

the

on

'

determination

fabric

the

rate

piece" of

30

EMPIRE STATE OIL
,

as

of

tne

V

Tribute

FINANCE

TURN

cover page

OF

SPEAKS

THE

ISSUE,

we

Exch.

Broadway, New York 4

DIgby 4-4970
1

Teletype NY 1-4643

Exchange

Jersey City
Wires to Salt

today's issue will be found
high and low prices, by

Plskce
HE 4-3634

•

Lake City &

Denver'

Hycon Mfg.

stock and bond issue in which dealings
the New York Stock Exchange during 1956.

Paid

to

Alexander Hamilton.,

Bank

t

•

'

\

Jessop Steel

25

Pacific Uranium

27

Eastern Industries

_2__

Business Mau's Bookshelfc_.j____2--,:

f

and

Insurance

75

___Cover

___^

Stocks.

Singer, Bean

127

of

of

economic

interest

may
annual net

is

sell

high,

for

a

for

to

and

Continued

page

Chicago

*

to

Los Angeles

*

136

News About Banks and Bankers

\

Observations—A.

Wilfred

r

Our Reporter

i_-_,

Governments

Our

.

on

Reporter's

Public

May.

20

31

._

Report..:—

._

The Market
The

X

119

.

,

Security

.

Offerings

.»•

Four

referring

area

of

A
16

7

_

upon

country."

believe is

we

ANSCHUTZ DRILLING

140.

■

Rocky

come

timely investment

2

—

the

to

the

they've

say

"the hottest oil field in the

Best__.—_

'

men

99

<

You

and

-

oil

Corners

Mountains

132

Corner

and You—By Wallace Streete

I Like

Rocky Mountain finds of oik
been reported in the press.

Veteran

128

The State of Trade and Industry...!
Washington

,

j.

Security

Salesman's

have

115

Securities Now in Registration
Prospective

Vast

107

Securities

Securities

Rocky Mountains

134

—

________

1

Oil Rush In

4

—

Utility ,Securities—^—

Railroad

directing the
on

Philadelphia

*

not be undertaken if

guiding

Direct IVires

13
135

—.

Mutual Funds

piece .of land may. sell
twenty times its annual net

in

inc.

Exchange PI., N.Y.

'

capital were scarcer and interest
;
rates
higher.
The interest - rate,
like all other prices, has work to 2
do

40

Teletype NY 1-1825 & 1-4844
9

Indications of Current Business Activity

same

which could

HA 2-0270

8

,

From Washington Ahead of the News—Carlisle
Bargeron

,

Mackie,

7

Recommendations.

.

ten 'p

product. If
the rate of interest isicut in half,
the

.

&

8

Einzig: "Effect of New British Premier Upon Sterling
and Stock Exchange"
'__U

-

.

values.

1

Coming Events in the Investment Field
Dealer-Broker Investment

to

*

r

•

'

Twice

published

Weekly

COMMERCIAL

The

1

-

Drapers'

Gardens,

New York

Stock Exchange

-

B.

Park

!

■

.

►

TELETYPE N. Y. 1-5

•'

•

COMPANY,

DANA

New York 7,

Place,

'

Reentered
V

...

„

Pablisber*
N.

Chicago
•

•

Glens Fall*

Worcester

n"

.

B" D*"

SEIBERT,

DANA

Thursday
issue)

vertising

and

statistical

rotary
second-class

as

Subscription

.

President

Chicago

city

news.

Offices:-

3,

111.

135

news

—

bank

-te4
etc.-).

'-

South

Pan-American

Union,

in

Dominion

Canada,

of

(Telephone

STate

Countries,

Bank

and

per

$63.00
per

year;

per

8..

wells

in

year.

Record
..

,,

fit.,

2-0613);

Monthly,

,

"d—^'sements
be

made

in

New

York

funds.

of

and

5

of

over
over

proven
gas

-

and

contract.

in

97

with

states

and

with 14

$500,000
125,000

oil

gross

per
acres

unproven

properties

in

8

oil
oil

states.

Send for FREE Report
—

(Foreign postage extra.)

^

month

on

interests

producing

Note—°n account of the fluctuations In
{he r&te Qf exchangCi remittance5 for for.
Salle

has

in

company

area,

drilling rigs

Also

year.

Publications

Quotation

j4Q.oo per year.
.

SG0.00

$67.00

Other

clearings,

-

La

•

revenue

Rat«s

of

ad-

Mopday /commarket quotation

news,

Febru-

Subscriptions
in
United
States,
U.
Possessions,
Territories
and
Members

Other

'

and

matter

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

every

issue

corporation

L,'" and

state

Other

(general

Largest drilling
Rocky Mountain

.

SEIBERT, Editor ic Publisher

D.

Thursday, Jan. 17, 1957

records,

•

Schenectady

Ccmmsn Stock Around $3
Eng-

ary

Y.

vREctor 2-9570 to 9576

WILLIAM

.plete
Boston

C.

•

C°Pyr"'"

.

4, N. Y.

ST., NEW YORK

E.

r^ hUssat 8w-m'-

and

CHRONICLE

Reg. U. S. Patent Office

r

HERBERT

•

London,

"

WILLIAM

2-430<U




42

today's issue will be given
Jan. 24.—Editor.]

r

Bates

John

Every

•

Salt Lake City Stock
Spokane Stock Exchange

Regular Features

Spencer Trask & Co.
•

Members

the

present

_

Nashville

J.F.Reilly&Co.,Inc.

AFTER

YEAR

As We See It_ (Editorial)__r_

;

IlAnover

32

34

of today's: ANNUAL REVIEW

r

25

BROAD

INLAND RESOURCES

'

PREFERRED STOCKS

Members

-•••

-

every

on

FINANCIAL

have specialized in

Albany

Shull____

Neglected the

land

its

times

e s e r v e

V

many years we

TELEPHONE

REFINING

Text of President Eisenhower's State of
the Union Message__
Roswell Magill Sees Small Business Chief Victim
of Proposal
to Broaden Scope of Federal Corporate Tax Lavv„_

supply

-

25

CHRISTI

28

usual tabular record of the

j occurred

-

For

CORPUS

v

Executives—George Saum__

In the SECOND SECTION of
our

great'masters in the field
the
theory - of
interest; ; as

whole

later

radically.

the
•

COMMONWEALTH OIL

26

V

•

could not be accommodated in

money

Clark, have concerned- themselves

"infla¬

acute

Federal
-

!

24

■

If the

will be substantial but more modm-ate. The
question of the amount
in the increase
of interest rates is
the

ISLE OIL

CATARACT MINING

i

Babson—31

in the issue of

savings wnich

BoehmrBawerk .and

;

really attract investors' money
adequate amount, the increase

•'"

BELLE

18

Sound Economy

a

opinions of
Government, Industry and Finance regarding
the outlook for business in 1957.
[Commentaries which

./

The

product. The rate of interest binds
It
forestall this, policy is changed together present and future.
and the Federal Reserve authori¬ governs the allocation of capital
among, different
productive ac¬
ties tighten the
money markets,
tivities.
If-capital is very,, abun¬
and the1
Treasury? pays rates of
dant and interest rates are low,interest Ion its borrowing which
activities
may
be
undertaken
will

whether

*-

leaders in

of interest.

If
or

the

on

Money Factor

tionary" phenomena, rates of in¬

primarily

W.

AND

AND- OUTLOOK

The

•

interest'must rise.

■

ALive—Roger

THE

importance.

possible.

real

Economists

rapidly moving expansion of-bank

in

Permanent Dollar .Gap

a

BARUCH-

KENILAND OIL

-

dangerous "flight from the dollar," very., little with money market
a phenomenon
which few would phenomena.
Interest is a phe¬
nomenon running far beyond loan
transactions.
It is implicit in the

rise

to

BUSINESS

have anticipated.

will

YORK

4-6551

~

is

terest

or

of

culation should mere than double
since 1939 without
precipitating a

credit

NEW

15

—

control

deposits and

rate

in cir¬

money

bank

side

hand,

lend

in

influence

a year to the
government
unprecedented phenomenon.
that the combination of de¬

of

Street!

17

_

Deferred Compensation for Key

tne

erning

billions

rates

Nielsen.^

Ideal and Working Concepts of Full
Employment
-—Edwin G. Nourse

.

looked upon as the primary
source of capital, and as the gov¬

that the banks
to

that

Wall

WALL STREET,

ways

On the

other

Benj. M. Anderson

believe

99

14

Tripp_______:_____

Why. We Need The Gold
Standard—Frederick G.

to the relation be¬

as

economists

con-

experi-

ence,

I

S.

capital market and the

stitute for the

the

y ; to

past

f

>.

.

discussion :as

-the
as

in circulation

without

"raising

'

obsoletes

anytime

Telephone: WHitehall

__

Re-Examining Credit Policies to Achieve Economic
i.
.Stability—E. Sherman Adams..

market, and the extent to
multiplication or .ocu¬

money

many

tens of billions
year

make

tween the

should be bor¬

a

shall

question is

^government

rowing",

and

of first

non-technical

That the

ence.

'

___

in

Obsolete Securities Dept.

12

_____

•

light of all

past

mand

At

10

J

______

The New Dimensions of
Business—John S. Coleman---

fundamental theoreti¬

a

the

And

___

Canadian Economic Growth
Depends Upon
—Gordon S. Ball_________

we -

the situation becomes difficult."

ab¬

are

forced

are

surdly low in

an

--.-—Robert

>»

'

\

the Treasury-pull
whether they pur¬
policies ; until their

'

is

•_

Outlook for 1957—Chester D.

to

or

existing

sue

Prevailing
rates

in. time,

up

to the amount of

able

6

Industry: 1956-1957
Admiral Dewitt C.
Ramsey (USN-Ret.)__________'______

authorities and

as

increase in the rates of interest.

be

I

The Aircraft

Monetary Policy— Editor.

possible to

definite forecast either

should

—

.

National Committee

as

with

guys

Drop

Sanderson

Influences in the World Business
Williams

:Outlook—Harvey

University of California, Los Angeles,\
Economistof the ' Capitol Research :
Company, Los Angeles, and President and member *
of. the Executive^Committee of the Economists'

or

For

5

M.

Looking at the Major

nomics at the

to the time

Corporation—Russell

69

article written by i

Consulting

a

Futute of International
Oil—A. N. Lilley.

Benjamin M. Anderson in the latter part of 1943., He was Economist of The Chase National '
Bank of the City of NewYork, Professor of- Eco-<}

a

AND COMPANY

always greener

3

,___

out

orthodoxy

accurate
an

the late Dr;

make

1■

the cash is

:Cover

Anderson-

"..The Robertson Study on
Existing Banking and Credit Laws
'
—Senator A. Willis Robertson

-,

j

believe it desirable to

Rates-—Benjamin "M.

Details of Hoffman—Ira
U. Cobleigh

-Advertising:

?

; ; Because

—Edmund W.

•

■ "

the Securities Market
__

strengthen confidence in Government finance, future of "cur*
rency,,and the whole economic picture.

.

Page

Sf

.

through all modern history." Author pointed

advocated 4 a

•

in

The Future of
Interest

.

no

and

rate;

;

4.

What's Ahead

/

"new techniques" to make bank
credit expansion
safer; showed where Keynes reversed his views on interest

we

LIC H T f nSTflfl

B. S.

Articles and News

[should pay]
rates of interest on
borrewing which will really attract in¬
vestors' money in adequate amount
[and] move promptly
to fund its debt into long term bonds.
After reviewing
forces shaping interest rates,* the Economist
averred that no
country ever overdid four of the five
capital-raising ways, and
warned that debt creation
through bank deposits must be
-cautiously done as "excess here has been the Typical breeder
.

*,»

I N DE X

[should] "tighten

market;" and (3) "the Treasury

11

Ph.D.

Writing on the future of interest rates in 1943, Dr.
Anderson
believed:
(1) "that sooner or later rates of interest
must
rise"; (2) "the Federal Reserve authorities
the money

»t

3

muat

General Investing Corp.
Members

American

Stock

80 Wall St., New York 5 •

Exchange

B0 9-1600

Financial Chronicle

The Commercial and
4

Thursday, January 17, 1957

...

(200)

With M."W: Welsh Co.

higher-grade stocks, together with ,^hpyRrQppn.dqy9nce, ot
total of NYSE listed issues in the face
of their over-all average price gain, reveals that in all market ,
sectors—both split and un-split—outstanding performance by a-

latter's

individual losses among the

Observations.

substantially raises the record as a whole.
together with market perform¬
ance during specific
periods/before and after the announcement
date, we will study in a succeeding compilation. Meanwhile, in
view of the application of the. year's dividend rises averaging 15%
to 847 of the un-split as well as split NYSE^listed < companies,
omission ofA the dividend variable in this analysis is not .vital'.

(Special to The Financial

minority of issues

Co.,

The effect of dividend change,

By A. WILFRED MAY
THE

1956 MARKET PERFORMANCE

IN THE STOCK SPLIT AREA
addiction to the stock split goes on

The

Typically,; in its
New

of Jan,

''Times"

York

the

FAILURE TO TAKE ACTION
ON SPLIT—Much of the excitement of the day
iocs generated by corporate news. International
Nickel has a sharp run-up on rumors that the
stock might be split. By late in the afternoon
"it touched 115V4, a new high, up 57/s,x>n the
day. Then a spokesman for the company as¬
serted that the directors at their meeting had ~
BOOMS,

STUMBLES

THEN

We

said:—INTERNATIONAL NICKEL

8

exert

ON

impact

u

the

During

r

.

.v'
;

Wilfred

'

re,

_

3-1

-

2-1

Apr. 30

Of the 80

—_

2-1

Corp.—5-1
2-1

41--

or

•

f

cases the comparative changes
issue (Minnesota Mining) is unclassifiable.
The

Since

equal; and

one

in companies that are
otherwise faring well, the
quality factor may
well share
responsibility for the favorable market action. This
conclusion is substantiated
by our study which, using Standard &
Poor's Index of 15 High Grade Stocks as a
yardstick of the upper
echelon market action, shows a similar
performance (a rise of
13.8% in the split issues versus one of
11.7% in the S&P 12 unsplit and three split shares High Grades).
its

"—

+ 16

-

+

—

_

.

—

5

—

—12

July 26
Nov.

;

+

+ 15

+ 20

July 10

+ 51

+ 86

+ 21

interest

2-1

Jan.

27

—13

—15

Fidelity-Ph. Fire Ins,—

Feb.

17

—12

—12

Gardner Denver

Aug. 28 /
ApiV *•' 4

+ 70

+ 38

General

Foods

_

2-1-;
___2-1T

2-1

...——i.

General

Railway Signal.

3-1

Oct.

General

Shoe

2-1

Mar.

——_

•

—

1

—

,

7

—

+ 33

+

6

—23

2-1

Sept, 11.

+ 47

2-1

Oct.

24

+ 18

3-1

Mar.

21

—12

2-1

Sept. 18

Hussman

Refrigerator.

2-1

—

„2-1

—

Sept. 19
Feb.

—

5

+41
—

5

+

ESTABLISHED 1900
Members New-York Stock Exchange

+ 19

'21 1

—12

4

+ 13

White Plains

+ 31

St. Louis

—

2-1

Sept. 17

+ 45

2-1

Mar.

12

—11

2-1

Apr. 19

+10

2-1

Oct.

18

+ 30

+

2-1

Nov.

20

;+ 9

+

2-1

June

27

4

+

2

3-1

July 25

2-1

Apr. 25

2-1

May

9

.2-1

Feb.

15

Corp

McGraw-Hill
Mead

—

Publishing

Corp

Minnesota Min. & Mfg.—

^

Minn. & Ontario Paper

2-1

Apr. 30

2-1

May 16

2-1

Aug.

6

—

.

—16

+41
+

4

—

*

+20
—

9

—

5

—19

3

—

—12

I

>i

,

Apr. 11

+

11

+ 32

+

9

2-1

Apr. 26

+47

+

6

2-1

Jan.

4

—10

—

Feb.

24

+20

2-1

June 18

+30

Royal

Consol.

&

Coal

3-1

Copper & Brass—

*

pioneering

>-

£

RR

111

ce

W rite

or

phone for

our

favorites.

<

Member: New York Security Dealers Association

2

s?




6
5

—

+

6

+ 10
+

Sept. 14

+ 70
+

May

4
31

2-1

Nov.

7

2-1

May

1

2-1

Apr. 25

3-1

Feb.

Bag & Paper

Union Pacific RR._.

5-1

analysts.
the

associates

All of

language

security

think and talk

us

of

Four of

are

the

investment

community.
0

Sepd for

our

questions

list

about

Street."

of

us

clients.

around
-

~

Ask
"The

•

2-1

May

Utah Power & Light

2-1

Oct.

7
6

+ 16
+ 17

9

+ 11

—54

+ 25

—

—

+

1

1

+27

S. Hoffman Mach

—

8

May

U.

3.7

—

+ 15

—16

S.

'

2

May

U.

Freight—

senior

+23

Jan.

—

O

personnel.

6

Feb, 24

3-1

*

m

—

May 16

2-1

Union

—

3-1

Texas Co

.

co

27

7

+ 17

4-1

•

I-

Jan.

+29

21£-1

Telautograph Co

1949.

UJ

8 Apr. 25

Sterling Drug

8

+ 40

—

2-1

Industries

skilled

sonnel.

our

8

2-1

Railway

by

greatly when such a
on a sustained basis
and experienced per¬

+17

+ 11

—

and

company.

your

told

—11

Standard Oil of Calif

since

..

2

Standard Oil of N. J._

I

iu

benefit

We have such

+

Apr. 24

Square D Co

o

You

+ 17

+ 17

Nov. 21

full

the

them

about

story

story is

Apr. 18

2-1

Airline

Shahmoon
Southern

m

+ 37

6

May 23

Petroleum 2V2-1

Seaboard Finance

as

8

—

2-1

z

»it

Feb.

5

2-1

Gamble

Dutch

Seaboard
■■

tell

to

factual

8

2-1

Revere

■

the nation's 30,000 financial opinion
leaders rely upon you, as manage¬

6

Jan.

Procter

1939

YOUR SHAREHOLDERS—AND

+ 10

2-1

Plough Inc

since

Cable Address: "WALKERIAN"

ment,

—19
—

Providence

5

2-1

Pittsburgh

i

Hartford

7

Manhattan Shirt

YORK 5

-

4

Louisville Gas & Electric

Bridgeport

+ 15

Lehman

ONE W* LL STREET, NEW

+ 10

Lehigh Portland Cement

—

Phillips Petroleum

*

G. H.Walker & Co

4

Petroleum Corp.

*

request

8

Parker Rust Proof.:

investing

Copy C on

;

4

Owens-Corning Fiberglas

$

1
,

—11

Greenfield Tap & Die—.
Hilton Hotels

serious-minded

to

3

26

Hercules

Powder

publication topics of special

6

Otis Elevator

x

De¬

investors.

Stores--

—

Northern Pacific RR._„_

<5

Research

our

partment discusses, in this

■

20

North Amer. Aviation

—

month

+23

10

N. Y., Chic. & St. L. RR.

COMPANY

selected list of securities

May

Federated Dept.

;

the(

together «with

possibilities for 1957.' Each

+17

•

for

prospects

year,

with attractive investment

+17

®

28

our

assesses

survey

business
new

5
a

■'+ 8

17

January issue of

timely

1

+ 26

1

10

Montgomery Ward

d'AVIGDOR

The

9

Nov.

or

The irregularity of the favorable
record of the split
issues,
narrowing with the un-split yardstick in correlation with the

v

5

Johns-Manville

,

•

..

3-1

Intertype
Jaeger Machine

splitting is largely concentrated

growth situations

•

Quality Factor

were

1

+24
:

—10

3

Georgia-Pacific

or

groups

panics; in four

21

8

Feb.

>

'

2-1

Industries

Dresser

54%, out-performed the rest of
that remained un-split in 32 cases,
40%, the non-splits out-performed the kindred un-split com-

industry

+ 54

+

-

Jan.

Pet|toleurp —2-1

Cutler-Hammer

31

Sept. 13
,

8

—11

••*+22

Continental Insurance,--

average

split stocks, 43,

—

+-42

Apr. 25

2-1

:

'

3-1
4-1

Engineering-

+

8
+17" "V
6; .:
+26

—19

Oct.

Equipment

and Sell All Securities*

+10-

-+53

Mar.

Delaware & Hudson

their respective

8

2-1

Oil—_

Cotton

Container Corp
Continental Can

Findings

of ad¬

Aug. 21

2-1

;»+.••

We Buy

Established 1935

.

Brooklyn, New York City

—

..

+ 58

:

July 26

Cosden

greater proportion

Mar. 22

2-1

5

Jan.

Crescent

far

July

1G Court Street,

+

5

2-1

Combustion

S&P High Grade
supply appropriate yardsticks applying to the comparable
growth and quality echelons of the market.

a

28 *'

2-1

Index

that

; +

'

Aug. 31

3-1

>

•

5

2-1
2-1

..,

Brown Shoe

.

-••

+11+'

:

+40

DpJ Industrial Average of 30 I stocks and the

the split than the un-split issues.

8
- i

Apr.

Wilcox^.^

Chickasha

measure the movement of each
issue with that of the un-split issues in its
respective group. The

among

8

—

—11

&

Security Adjustment Corp.

Unch."

+27

4

July 25

.

High Grade Commons; and also

compilation shows

Maturity"

TRiangle 5-5055-

.

Apr. 2()

Champion Paper
Chesapeake Corp.—.

them with the

Industry

T

—

5-1

Clark

occurred

.3

2-1

rBriggs & Stratton_8.____2

concurrent performance of the Dow-Jones
Averages, with Stand¬
ard & Poor's Index of 480 Combined
Stocks, the S&P Index of

Respective:''.

+97-% •++24%
+ 3
+ 2

>

Oil__

stocks

Our

May

w

Apr. 26

Carpenter Steel—.

advance in.-the <split shares of 13.8% re¬
vealed in our following table
compares with a rise of 0.79%: in
the D-J Composite Average of 65 stocks and a
gain of 4% in S&P's
480 stocks, which likewise
comprise industrials, rails and^utilities

Price

Group

Mar. 21

May

First, to note the effect of splitting during at least a portion
(in the "candidate" role) and the post-declara¬
period—comprising the "honeymoon" interval—we list the
year's net price changes of all split New York Stock Exchange

vances

9

2-1

Boeing Airplane

of the rumor stage

year's

.•

2Y2-I

Babcock

tion

The

To Yield Over 7%

J

to

Atchison, Topeka & S. F.

May

..

Yardstick

or

of

Change

2-1

Metal—

.:Barker Bros.__ j*._

compare

2-for-l

«'

'

2-1

Anderson-Prichard

^

a

New York

'

.

Market

Jan.

2-1

Amer. Potash & Chem.__

process.

We

.

.

to

Steel

American

'

Legal for Savings Banks
7
Trust Funds in

surrounding

Trading'

Ratio

American Distilling--.--

the split's impact on the market as well-as-on the individual
split
issue's price level, one of the main justifications advanced for the

trading in 1956.

'Stock

•

•

BONDS

•

Admitted to Trading

Calendar Year

split

,.

/

•vAllis-Chalmers

the actual price performance of the
affected issues. This will shed needed light on

•

■

...

Allegheny Ludlum

cerning

to

V

.

Admitted

popu-

larity of this device makes timely and important unearthing of the up-to-date facts-con-

admitted

'

Price Change

by 20%, those in 1954 by 160%, and those theprevious peak year by 20%.
;
;
manifestation of the growing

:'

v

Were

Shares

New

Whose

More

.

'

+.'+

-

Date

York Stock Ex¬
change issues in 1956 exceeded those in 1955

Such

Street,

Midwest

-

bu+that the popular concept of such influences

Performance of All N.Y.S.E. Stocks Split

1956 Price

,

Such New

year.

Busseron

the

Exchange.

splitting process does,
and stimulates the affected

price performance during the climactic period

the declaration;

The

'the market,

on

is exaggerated../

(fiscussed such action, and I the price fell....
By 3:12 p.m. it was down to 113.
The number of stocks split set an all-time
last

307
of

at this time conclude that the

may

some

issues'

not

record

Inc.*

members

unabated!

of the previous day's market,

account

Chronicle)

VINCENNES, Ind. —Stanley C.
Chapman is with M. W. Welsh &

—

—

Continued

1

2
on

+ 16
—

—

5

+34
+40
+

GARTLEY & ASSOCIATES,

5

7

page 134

INC.
Financial
Share

Community Relations

Owner

'

Communications

68 William Street •

New York

5,N.Y.

Number 5604

185

Volume

.

,

.

The Commercial

and Financial Chronicle

ownership
of
Schutter
Candy
Company of Chicago, maker of

Details of Hoffman
By

IRA U. COBLEIGH

such

example of corporate expansion through diversifica¬
tion, U. S. Hoffman Machinery Corporation is briskly dis¬

career.

At

has

as

■

Corp.,

bought

1955,

manufacturer

world's

of

home

film

screens, as well as a pro¬
ducer of screens for industry; and

expansion of

an

vided

due

to

additions.

the multiple
For example,

pictures.
'*
*•
This brings us up to 1956 when

000

and^delivered

$50,320,-

put

ice

on

for

when

livestock;

tatoes

po¬

drives

record for

on

with corporate earning

'•beans

via

power

'

the

there

were

shipping

syn¬

1955,
first the Intercontinental
Mfg. Co.
of Garland,
Texas, was acquired.

net

per

still

more
mergers.wejre arranged:
Anton Electronic Laboratories Inc.

and: merger
route, commenced.'
Later,v Starting in the Spring rof

corn.

of

ill
.

researcher in

Of

earnings of HMY

Hugh Long & Go.

W.

have been erratic, and from
1947 to January, of 1955 no divi¬
dends were paid on the common.*
told

different

a

mon
,

story. The
3-for-l
in

split

was

and 2-for-l

1956.

in

will be

Thorne,,
Resiient Vice?
est G.

com¬

1955.

President

Present divi¬

Ira U.

Ceblelffh

.

electric

power

subsidiary.

and

aircraft

to run them.
Probably
the first really broadly diversified

components

corporation was the Hudson's Bay
Company, which owned lands and

lab

systems

boats, developed businesses, ran
trading posts and bought and sold
and

booze

furs.

Most

of

these

and in

instruments,

and

for

guided missiles,
quite related line, Aero-

a

In

addition to these,

govern¬

a

ment owned munition plant

erated

on

a

Development

is op¬
fee basis at Scranton,

5, 1956.

shares

common

are

preferred

two

shares

(convertible

of

past

one-half years,
in

into

common)

of

stock

e r s

$2,306,061 in long-term debt.

trusts

of

natural

the

well

as

earlier

1900's,

almost

and

broadenings of

an

endeavor.

the

as

were

automatic

so,

Not

original line of

however,, with
our
subject- company for today's
piece,, United ■ States
Hoffman
Machinery Corporation. - Here di¬
versification

has

been

achieved

by deliberate design.
'
HMY
(the N.Y.S.E. symbol of
U. S. Hoffman) started its busi¬
.

Hoffman, by almost any stand¬
of comparison,
is a unique
enterprise.
The casual investor,
coming upon it for the first time,

ness
a

life

back

in

1908,

becoming
corporation in 1922.

Delaware

It became the world's largest pro¬
ducer of laundry, dry cleaning and

garment pressing
for

many;

dominant
deavor

machinery, and
these

years

lines

and

of

the

and

Foundry

Inc.
gray

added.

of

corporate

en¬

sources

Three
1946

of

in

the

Stanton

Solvay,

N.

iron castings,

Then the

of

company

acquired

in

maker

the

main

earning power.
properties were

thirties,

were

Y.,

grow¬

Then

and

Hyman
Marcus:
"The
ultimate
objective4s to provide our stock¬

bigger one—the holders with an investment which
acquisition of the Fein Group of should not be subject to the fluc¬
tin can companies (sixth largest tuations of any one industry, but
in
the
country)—Standard Can which has the prospect of capital
through
corporate
Corporation, and Atlas Can Corp. appreciation
(with three subsidiaries). These, growth." Eventually. Mr. Marcus
seeksVa diversification
so
com¬
together, constitute the Can and
.

came

Container

delivered

a

Division
gross

of

HMY;

and

sales of $17 mil¬
this year)

lion

in

from

production of tin cans, pails

1955

(larger

metal containers.

and

was

acquisition pro¬

ever

plete

that

Next, and swinging into
area,
HMY picked

a

brand
full

up

more

than

5.%

of

Whereas,
not

Hugh W. Long

equity,

as a

or

merger

common

porate

•

The

— investment
above-mentioned
mutual funds. Since entering the
securities business in 1936, he has,

ment Company, Inc.

or

15,

with Shields and

he was

1948

In

Company.

assisted in 'the

yield¬

1949 he

and

establishment and

management of that

ing 8% of the indicated dividend
selling
around
six
times

organization's

mutual funds department.

rate,

subsidiary

any one

Mr.

record

University
with

or

affiliate.

Marcus, who had

a

(he

at

a

brilliant

Columbia

graduated

at

18

Phi Beta Kappa Key), has

& cox

DCC GE

TAKE

IN

PLEASURE

JOSEPH

C

to

1940

years,

investment

IN

investment

management. From
1949, except for the war;

research and

would

'

&* Co.

Blair

the

to

advisor

.

at

the un¬

Fahnestock joined

Mr.

derwriting organization in April,
1956.
For the previous six years
he was with Investors Manage-:

seasoned dividend
institutional type

common

BEEN

HAS

ORPORATED

FOUNDED 1890

e.
van

morris
a.

ouyn

peter

MADE

A

managers

ANNOUNCING

j

THAT

FEE

M.

PARTNER

OF

FIRM

THE

cox

San

dodge

Francisco

January

avenali

1,

1957

Members

New York Stock Exchange
American Stock Exchange

(Associate)

We

are

pleased to

announce

the appointment of

Midwest Stock Exchange
JAMES

Philadelphia-Baltimore Stock Exchange
as

manager

of

C.

our

RAMBIN

sales department

a

44

WALL STREET,

*

Albany

Atlanta

Columbus
Grand

Rapids

St. Louis

'

Manchester

Scranton




Buffalo

-

Chicago

Eau Claire

Philadelphia

Flint

Pittsburgh

Detroit

Rochester
Wilmington

Williamsport

Springfield

: ' t

-

>■

SECURITIES COMPANY

•

investment bankers

,

Boston

Aurora

Dallas

MUNICIPAL

NEW YORK 5, N. Y.

f

Di¬

Inc.

does represent a cor¬
spectrum; uwith plenty of

color.

Inc.;

Investment Fund, Inc.;
Manhattan Bond Fund,. Inc. and
Diversified Growth Stock Fund,
versified

it

an

Investors,

Fundamental

largely specialized in

HMY

qualify

payer,

another

New

and Company, Inc., is national un¬
derwriter for four mutual funds-

by Autumn.

doubt

Fahnestock

b.

total income will be received from

academic

new

not

no

two

Northern
Jersey.

and
R.

was

ing volume.

N ew

City,

Long Island

ard

which

sorted merchandise in

in

York

.

diversifications,

serving in-

vestmentdeal-

and

Corp.
(again
Pa., and munitions plant is oper¬
purchased) ated for the
might well be a bit baffled at the
Navy at Poughkeepdesigns and manufactures
rangy assortment of products: tin
sie, N. Y. A major part of sales in
Free Flight Test Model Air Craft,
furniture,
pants
pressors,
1955 was in shells for the gov¬ cans,
and
is working in the research
movie
screens,
candy bars, ex¬
ernment.
'
*
and development of guided mis¬
plosives, projectiles, missiles and
From the foregoing you'll per¬
siles.
wind tunnels.
But the point to
ceive that HMY is a tough one to
note
is that HMY seems to
be
In September, 1955, Apco, Inc.
write
about.
It's
practically a doing a pretty good job in all
was acquired (again 80% owned).
financial
department store.
All these lines.
For
tne
immediate
This, with five subsidiaries of its these assorted; additions to the
future, there lie ahead a prospect
own, is one of the largest manu¬
corporate, roster represent, how¬ of further rise in
earnings, a pro¬
facturers of vending machines in
ever, not a casual kaleidoscopic
posed spin-off of Hoffman Inter¬
America,
producing
coin-happy /collection, but the result of a defi¬
national Corp. stock (the company
robots that
deliver
soft drinks, nite
plan, a plan best summarized handling
European (operations);
hot beverages, cigarettes, and as¬
in
the words of
the
President,
80%

for the
four and

pany

2,190,-

outstand¬

ing, preceded by 41,130 shares of

$2.50

of;

the Long Com¬

dend rate is $1.20 with a 1% stock
150

associ-^

ated with For¬

'

dividend paid Oct.

Hugh

Long and Company, Inc., Eliz-.
abeth, N.J. He

The past two years, however, have

.v

of

Vice-President

Resident

the

over

pro¬

may

ELIZABETH, N. J.—R. Bertron
Fahnestock
has
been
elected
a

of

$47 million and
share of $1.31 on the common.

"The

nucleonics and

electronics; Rexarb Metal Indus¬
dicates which This unit is a volume
producer of tries, Inc.,(New
York),.completely
; became
trad- major
aircraft
components
and integrated' maker - ' of
aluminum
ing companies guided missile air- frames; as well
furniture, from billet to back rest;
as well; and as a maker of such assorted items
and
George McKibbin and Son,
much later in as
agricultural
equipment, bus a leading book ^manufacturing
.history coal bodies,
vending
machines
and
company; and-in November, 1956,
and ice joined heatless pressors.
In quick suc¬
Highland Manufacturing Co.
in a two seacession, HMY added (80% of stock
Financial control of all subsidi¬
son
parlay; acquired) G. B. W. Mfg. Co. at ary operations is centered in Hoff¬
then trolleys College
Point, N. Y., designer and man Machinery Credit Corp., a
linked with developer of hydraulic, marine wholly owned

a net per

years

Brooklyn; N; Y., patent holder

and

sales total

above,

R. B. Fahnestock V.-P.

share
$1.26 on the common then out¬
diversification within an .years. But in .late 1954, when new world wide sales
agent for anastanding. For 1956, however, the
enterprise began. • In agriculture, management came* into the pic¬
morphic lenses used with Cine- first six months alone
produced a
it's very old; grains along with ture, one of the most aggressive
maScope
was

Hoffman,

of

indicate that
this expanded laundry equity is
just the ticket for venture-minded
share
buyers,
who
are
unper¬
turbed by market volatility.
-

comparisons here

year

Details

now.)

depth, which

net sales for 1955 totaled

jection

eight

to

difficult

company

pro¬

with

,

most importantly
rising trend in earnings.

Year
are

largest

5

earnings, may well attract new
he? stockholders.
(It has over 1,400

contributed

to the

Hoff¬

himself

surrounded

has

brilliant

a

Hoffman,

able management in

carbohydrate
Bit-O-Honey and

November,

facturing

through with

business

80% interest in Radiant Manu¬

an

cussed and described.
gram

in

man,

followed

known

Old Nick candy bars.
(
Again moving far afield.

A classic

exactly

well

confections

-

Enterprise Economist

Nobody seems to know

(201)

600 First National Bank

Bldg.

Dallas 2, Texas
Telephone 111 8-5031

January 7, 1957

Teletype

DL-558

Chronicle

CowiwicTcidl flwd FiHdticifll

D16

6

.

Tliursdsy, January 17^

1957
/olume

(202)

Advertising

Ct *notation

a

*"'wav1Iali

product advertis¬
ing with inadequate and poorly done corporate advertising,
Mr. Sanderson recommends that companies "tell the world"
about themselves since people generally buy the stock of a
firm they know about in preference to one equally as good
but whose corporate life is not favorably known. Author sug¬
gests set of rules for readable advertising, and emphasizes the

tionale

reached a

will

cepted part of

istic

unreal-

to

£ther

in
to

applied

to

product advertising.
Corporate ad-

1IC

rp,ari

+n

\ cursor

m

eports?.

wTthmo^v

wi h

"stock. ^ toeSte
oned

with:

it

ability

the

the

identify

—

P6°"

Tell ,them what your

that good will—

is

to

^;n0t aPPUC

be reck-

will have to

that

>letely:
nake it

Chii

Id

Chicago

are

doing.

.

cor-

T U

-

the^

gen

'

r.

talized for more than a token sum,, T11 them what you are
is among a business' most, valu-

■

Investors, recognize

assets.

able

.

,

never

^ ^™b«'|ale6rather6walked

n£nJf

going to

™?cft ;? *" not

word

o.r

Rut

?r?. easy

it'

is

To sur

to_ read and practice

pur

co

ell it in

Lf Ielou,s,,neg!e,f °" ,?,U the rest'

not.

the

ense.

.'oThey. Will readtl^ can p down.
,
'
■ ■ ^u^li if
d^
about it.those things that
siinple

oi

icture

Teii them what's good

very

tha

ike

word to

but ne^woma^nave.ramer walked
doingj™^
."^wim ^cu- |j
"ty ana^sts and investors. They |

: '

'

how wellyouare

is

ure

Herculesaycouldl;ha^e

been that

is

company

of

ense

1*•. ■Emerson is quoted as having
b ..F 1

make

iot to b(

«n;+h

f

^

\ess

for

multiple

agree

true

to

is

o

» »*o
*°r "If™8•„ »«
too hard for
financial com
nurnity. Ittjsni because we^can t
?®ad
because we won t read

to remem-.
be
that whether investors are individuals or institutions, trust officers or large pension fund buythey are all people
l£ey
need no special set of rules that

.

.

nf

repeated

only
when

ul place

tS-S^iTJSSSil;
investors

important

of the billions that
.

wm

by salesmen. They all stocks of more aggressive advCr-: ™at ™
^
that it is easier to sell se- tisers and sellers."
.■
curities that have a good name.
'
•
,,
;
on human relations and ronjnu
Of course, well-known securities
Advertising Target ^ c -i01?? 1,
2' oomeo
nas
sell best. You find this same-in-*™ to whom do you advertise? The sald ^at our modern
ivi iza
fluence on managers of institu- New York~Stoclc Exchange re- may

But this seems

were

las

heard of the company .'Lit is often

it.

defend

de-

when littlecorporations must move to,

known

:

don't want that securityM

have

to

our

yv**
'en m*
securities or tell
ple what to buy?
I

wnai

ple who buy

Well Known Securities Sell Best tWs It explains, in our own mar-B
Everyone in our business has ket piace> why shares of," lesseris
frequently heard investors say,4"I known-;

life that it
seems

we

point in

required.

be

truth

„

business

our

JNOW

And

''The day may come

ably influenced by corporate advertising.
'

advertising. Advertising has become so much an acfor

v-

capital.

overwhelmingly favor-borate entity-thoughraretycapi-

to have to develop a ra- others are

anyone

naiHcopius

venture many

persuading

in creating opinions or

for

need

no

mc

velopment where people will,
their own self-interest, .have

importance of easy-to-read annual reports.

be

These

fact is that material at that level

Advertising Content

provided is

be

can

creative

tional

Contrasting the successful, widely accepted

should

this

mrougii

have

There

reflected in the price largest corporations

SMSSSJM5you

Smith, Barney & Co., New York City

cornerstone

be properly

more

.

t

RUSSELL M. SANDERSON*

By

tools,

and

plants

more

Ih£,,™nNitonsmid^commiui

that.are filled with complex charts land und
succe
which-take too much time and
ampaig
effort to understand.

-

same is true of the Vbeauti-<
ful„ report. Many reports become

.

more

^

of art than fac-

like works

C
tional portfolios. Consciously or,. cently made a census of'stock-us
'tual, ntwsy presentations of life
unconsciously they are always5 holders and came up:^ with-the J"®
afe D^rtlCIllSl IV 3DD11'" at Amalgamated Widget. Remem- |
Arl itrilK
^1 AAlr"
fViDli*
illJ'i
ithiriK
T. M1 .Q
IS
E
a company for
concerned with the "look'.' of .their iigure ■ of - about—nine million.J thlur]k +thl+i 1S, .palltl^;
" ber that unless you say something I
itself,
is not portfolios. They know that; their -these are the people-who own ^abje to the kinds of^information that ig easy and importahrto read,
%
Russell M. Sanderson
d o ne very: investments are imder scrutiny by :securities and
may be expected to }that
corporations-otten put out..most people; are too busy to be'g
much and is' critical people. They know
-h
that)be interested in any information Lots of it ls^hard to understand.
satisfied witb aesthetics when it's 1
often not done very
18,
well. This the securities of companies that. they can get about companies that
Of all the devices which a com- ;fabts they want
Baltin
seems
extremely surprising be- are well known are those which iSSUe shares. Of course there are'pany can use to tell its story the
j
think
the
most
important
cause corporations are for sale, or
social
will invite the least criticism.
;a great many more who don't own annual
report Js probably the^thing that you cem do is to rescue
Winte
at
least
parts of
them called
I can recall several years ago stocks but probably ? e n o u g h > cornerstone. It comes at a natural tbe annv,ai knd other corporate reHotel.
shares or stock are for sale. Like- our having a.customer purchase a ;
money so that they could."' With.--time
created hy \ the habit of
t
f
^ th WOrds of the con
anything else bought and sold, high-priced bank stock during a jn the financial industry, we have' thinking in terms of a year's progr Proller and the accountant
th<
Tan. 21,
acceptance or the lack of it by1 special offering and being fairly the investment counsellors, secur- ress, or growth or ^development.
Oawwr' Lpf
Invesi
prospective buyers determines the serious when he said, "I think that jty brokers and dealers and their,Tt ; is typically sent out to * all
Phil
them use their 1 words in talking
m
my. sales
price. Certainly it is a truism that- name
will look good
good
organizations. You have the-stockholders; to most - members f
hut IrtV use all the
Night
anything you have for sale ought: estate." It was the
we
with their trust companies iiavv ^uuu m ex- skin^we have acquired in product,1 Jan. 24must
^Some nilvoplicintf■■ fn■ 'li-inlr
denartments and
generally to be sold at the highest5 clihched the said,1CWe unust not ^ommei"cia} ban^s UlC trust EU1U- ofjhe ^i.nsai^y community.it
have
found
H
ucpdiuiicilts
departments clliU the trust com-"5 comnames "have
and the uusi com- tuui^aiui-iJ
found
it
ex
make
our
comAssoc
pOSSiblO price. Advertising, every- overlook a
A/lTTArfiMYYrt AtrArir. nvprlfinlr u
hncin human
' panies. All of these provide Xil
aii
_ r
At
:
basic human factor; J.
the'tremelv useful to advettise it fort<> max No one ever
one
Firms
says, contributes to the ■ sue-; called pride nf ownership. A good
s,
audience to be told about, a cor--; general circulation. It is a device panl?s hn^rstooa. .
written in legal
sale
people get,satisfaction -- nnratinn'c lifp
in*
cessful sale of nroducts and serv-vmany people . get I ------ —
t
thinir if
tn
whifh
is
hnmnlpfplv
11'nHpr" vniir"1
a(t -Wr
products and serv- *nai?y
ing a
puiauun s iuc.
i
uiunv u
saie
iu
Wiuuu
la
wmjjwpj;
uuuci
ywui
•• » A^uniinrt' iart*An
Vnn
will
ices. If we believe that, then let
telling others about their invest- say that all of these people read control and which can be made 01*/acc U
g j ^^g •
,
IJan. 28
us think about it for corporations.ments. When they do that they and listen, that the 5
amountv; of<" to '.say and carry --precisely the '' neYf.r s^e 1
,
3
Bond
There has not been a great deal- 1,k? to parade recognizable names reading and listening they do, will 'message that wilTdo yo>v and the
wrl| J,1 vf
vertising, the
advertising of
.-vHam

M

rtr\

/*•'*.

nAT^n

*•

.1

•

i

*

|

Y^i

w

v

»"

.«

.

-•

..1

*i

i

•

.

'

11

mU 1

r

Ia a

rtA a

i

iiti

r

i

A

aa

4'

aawi V\

H a

rn

ri

at

.

i

i

-

il^.'

j.

*

1

^.11

/VI!

i. L

A

J

a

«*tIa

Art

t

aVi

aaw\

a

.

•

_

•

-'J

■

i'1!

-

'

'

.

.

.

.

'

.

_

.

.

T ^

.•

xl.

A

...

1

.1

.

A

_

A1_

^

_

5

'.

.1—

A.

a1-\

i'

----

A

^3

T

K

4-L

-

onl

-

-

/»

.

-

-

-

--

.

!1.

1

-

A

_

.1! «..!

'■

„

A*TAVtl AA1»»

—.

«-t

K

.
.

n

"

■

,

-

■

rii/i

*

•

.rin

,

of

value of

nr

direct"

and glow in the reflected glory.

advertising to the prices;

Recognizable security ^names

research

on', the

done

stocks

Qf

their

bonds..

or

sometimes

"Business

buying by their knowledge

if/lts

of the company.

<18%

said

this

factor.

C0%

of

the

was

investors

questioned

said

they depended heavily on
the advice of financial people,
people in the securities business.

02%
:

of

the

in

responses

the

_

_

apprise;y to notify

ar

,

,Here j should insert aLWord^of-

caution..

I

do

not

-

The

annual

to/say hews. ;lt should

report should be
interesting and

.

annu

.

Keep out the historical guff. Ay

glorification of-the past, a,? form
of
corporate
ancestor
worship,
be gratifying to some but it

>

may

doesn't mean

I

"

New
*

socia
ner

or

inforrn "sell' the securities of
make.1*
if
make -«

these
xnese

a company
aren't
goodf
aren t
gooa.

securities
securities

W pr°duct. the" besj

here, ''AH this is obvious." It
well be to

us

when

we

rrav

think of it.
of it

,

.

buy .securities :for

March

investor if the

r

cord were glo-

rious in the 1890's.

.

Thus,

you

at th

[Mar. II
Ame

now,

11th

Conf

.

u

,

the favorable

can see

reactions of

and

cause

[April

Tex£

sB^e11 to,SlTSown'wAl TOmmand ?bet-

kinds

of

stocks

they

Club. I think

"it
tUni

that
*A
•

summary

ddress

he

industrial
York

l;y

Mr.

delivered

Sanderson

before

Advertisers

the

of

an

is

an

old

axiom,

but

i__

~

before

sales

your

goods

move

Ollt

vour

force

can

mmnanipc

^^d

New

Chapter.

goods.

For

this

you

ter

market

than

true,
'

""/f gUOUS OUX, your Companies
Capital to produce those

National

Association,

portion of his talk

a

is particularly applicable here.

know

bout. People who are influential

<

r?°S2
d

a

hav.e

price

from

agaln

its

that

benefits.

TToitli

does

not

Quoting

t

Piinofnn

Keith

Funsfon

hp

rt

cpiiino-

answered

a

chmmc

i.»

thpv

bv

men

£v.eryt'"i"g thaf is practiced else- .right 4.—praying for the
track in pr
where often fet.s overlooked when second coming of McKinley, or
an"ual

r>

4

be

'u?U

avp

to

separate

underwriters

uct,

from

the

the

world

with its emphasis on

brokers

P3<!llv

easily

graduates.

man«uired

of

world

sales, with its emphasis
of

on

of

prod

-

finance,

shareowners

It is

particularly true with

issues of securities

distributors

ing,

PRIVATE LEASED WIRE SYSTEM

of

or
the

shall

an

rpaH

VlirfU

VlV

read

high
Six of the reports reby

Vocational

f"grC°,Uegiate

aaa
add

the
me

to
10

iiiirinsics*
intrinsics

level

in-

11CP

apa

annual report as
device hire a hall.

a

propaganda

!

P°stg™duate

In this same vein I say control

lequired some

college education

your art department. Make your

coilege eaucatl0nreport attractive but avoid art for
^ow bear *n mind that these art's sake. This is particularly true
rePorts were those of

some

of

our

of charts.

Charts have

a

wonder-

are

Members-

.,

advertis¬

STATE AND

call it knowledge

company, has its
usefulness.
New
issues

priced

chandise.

plus

3 ESTABLISHED 18941

new

just
Their

like

MUNICIPAL BONDS

other

CORPORATE BONDS
*

mer¬

LOCAL STOCKS

intrinsic' value

that

intangible which you
might call glamour, reputatjony^
charm, attractiveness, - orv what-,
have-you establishes the value,*"
-

los Angeles Stock

Exchange

•

Honolulu Stock
and other
*—*

Private leased

SAN FRANCISCO

•

PORTLAND

IOS
•




San Francisco Stock Exchange

Midwest Stock Exchange

Exchange

•

•

t

American Stork Exchange

"

Chicago Board of Trade 5

the

leading commodity exchanges

radiotelegraph circuit

ANGEIES

HONOLULU

0C9ta

•

•

•

NEW
AND

YORK

•

OTHER

to

PACIFIC

•

BOSTON

COAST

program of
•

SEATTLE

RHODES-H^VERTY BLDG.

*

ston

has

said,., that

this

will- all

-

ATLANTA

WALNUT 0316

advertising, it is quite

reasonable to expect, as Mi\ Furi—

CITIES

Robinsqn-Humphretj Company,Inc.

If these characteristics

have been created by a successful

Honolulu

CHICAGO

price.

The

ing

when
wutu

want people to happily own
your securities.
Cruel as it may
onVtnnl
Ka
1
IVi
xttVia
xiricli
in
school be, let those who wish to use the
you

issuing

greatest

Dean Witter
& Co.

we

that

Firn

the kinds of things which improve
anci
and

LONG

1, GEORGIA

DISTANCE 421

6

Assc

comes around, high tariff, ort low tariff, or f he
gold standard, or the flexible dolan €xtremely detailed lar, and so on. But those are not

and the need for creative
capital.'*

dealers

Exchange

Hotc

[May

Recently the Psychological Cor-

puidliuu «-,iU
U1U

whTrealize7bis noTonge8. ^ossible

INVESTMENT SERVICE

New York Stock

meel

_i__

manage~ accepted scales of readability they
I "I" ?ak~ found that nine> only nine, could
product.
I am hP

«tin

nf 1, Lb 1
and selling

j

analysis of the annual reports of 50
of the Kugcoi ruipurauuiis.
uii iuc largest corporations.
Using
using

•

that

increasingfv

-

shares

Said:
mpnt

nnt

Complete

for

company

these
frnm

aefnin

ing

"1st

Ban!

,

cial advisors advise people to buy
the

I

*

sure

'

effect.

People buy the stocks of companies they know about. Finan-

Toro
atior

~

1

£

thing to today's in-■

a

westor. --You

Sheri

[March

•

-

but there is some strange r* And I should lik-to make an^ notifying
this informing
is
?a
fei^f
the wdi:Jd S}} n^> pixie that getsv into the. minds of other suggestion;-This is^ not" an
sometbing wb'icb can best be dp
I
nit a ^a
i
f.? " those who prepare annual reports.'easy One for you to accomplish,
someining wnicn can oest be de- . a good, one. A good company like Aii tho<;G things that thpv k-nrnv Kppn mit of Vour rcnorts the oertermined in terms of your budget,.,a good, product is needed to make
xnm?s mat t( ey know iveep out oi youi reports me pci
vour
personal idiosvnerasies
thp
«™mL
"i
v?
about communicating and success- sonai economic or political phikinds of people you want to an
tive^ I'm
tw^ S
ful product advertising seem to get* losophies and views of the presipSftof
P else is eaual a11^ 5 thrown out the window. Some-ldent or chairman»ofthe board. It
Earlier ihi*
nnmnraJ MfJ. ",*c „,0n
I,!!' how everything that-Js obvious, well ..may -be that he's on the

community
said
they
favorably influenced by
.

that

whether it ls iin ^the should be kept in mind. / '»••••'.,t •
news columns or in the advettis- £...«•*
-5 >
jng columns as lorig^^as "it"^ is:4rif Emphasizes Readability of
*
teresting.
;k Vr ':. Aimual Report *.-■

-

fi-

cornorate advertising
corpoiaie aaveiusing.

things

difference

^YmediSf'-vou^ise to^rcomo^b J^St 1-®

nancial
were

simple^

some

5are

treasurer .ortq

^^r^ff^
accountant.

should- point out here • that that advertising is a k-ind-trf-stock'*eaSy to read.'Tt should'be timely,: wh'at lhey; wiii do. for you. today,
TYu adY.ertlsinS
P"ce magic. It does not mean factual, stick to the subject and be are g°inS tada tomorrow; It ready
Jrink]!?g give notice to; to defini- that advertising will successfidly.complete. You will certainly say ^011'* do you ..a bit of good as an
°? the dictionary
'to
inform

*

'

inter-' investor the most good. Now fhere '

£

major

,

the

acceptance

w nsMjeumwb.

how

on

I think*it niakes small

.esting it is.

re^lt trom product;
Week" a few years back did do a] advertising.,Helpful as it can bej
survey. on investors..'• They - found:";*iew®ver>^it • w corporate advertis- that investors were influenced in * rj® Jhat focuses on the company
of

depend

course

H|

i
H

»7

185

ul

1

'

*

*

»

Volume

Number 5604

,

.

.

•

i

\

'

The Commercial and Financial
Chronicle

.

place in- the annual report but t
to show something ,to .you,
make a big story easy- td grasp,'

o

models.

beguile you with prettiness; >
look at a lot of annualr

)r

lot to

e.

's

•eports - will "show

-■■■■

i-

of the chart "has

;ense

State of Trade

been"com[

jetely confused in an attempt to]
nake it" arty!It,-..-is? true, that the f

't
d

proverb' coined by a I'
Chicago advertising man ~A pic- j
are is worth a
thousand words" :

le
re

•'

'

.

12- 'A. :

•

•

11 ■■

' ~-1

~

1

_

X

•

Gutjttlt

Retail

Trade

Commodity Price Index

Industryi?

Price

Auto

Production.

1956,

of

The

New

Automakers

second

quarter.
But inventories
heavy and some of the*
decline' is attributed to adjust--

now

on-

Business Failures-*

shipments

within

Year

\

weeks

pressure

and

inflated

items

industry

the

past week, domestic.passenger cr?r
assembly is running on schedule
for an 8% January gain in month-

putting

are

leveL^.

Despite less overtime emphasis

deliveries.- One leading auto pro-

re

recent

concludes "The Iron Age."

producers for regular

on

from

ment

insisting^-in the automotive

specified

of

not

are

-

are

-

'•

x

off

ventories, it adds.

Index
-

1957

biWght;—ir^tsad
of
expected
carry-overs, unexpected'doirg

'

.

of

Then, production hardly
the ground in the last

quarter

-—-

Food

)ld Chinese

ig

Electric

Carloadings

that, the J

you

■■

got

Production

The

\ cursory

production

/

,

„

into

went

is

t

7

(203)

-

}yr volume

over

December, state*!'

re

Word

or

picture

.thousand word,

a

not

are

or

the shght rise in unemploy-

a

crease over

sufficient- (even

•

that

of

the

preced-

ment :was

that, many

housewives

rrTakerT'are
in

y

3t

•To OUIU up.
X v sum

your,

t.

j*

til the".world about

A en

niv_

w ui iu

GU JUL

C*r\+

i

easyrto-read stvle

L

dlltotnotlve

"

flcorDorate

advertising

the

7.

same

"C~

..

nlTf *2

and

There

.7

,

'

•

papeiboard

dustnes. last week.

The

-

in-

was

''^Thai^caii'ed^Serv
nne-so caned mystery

rwci UUL~

in

7

1

Detroit

tral

regions to 3%

T.

A

In Investnient

•

•

r^

.

0

^

,u

TT

..

iq

a

market for

cv]

cold-rolled

sheet

^.ih^wpp^Iv nrSntfnlitmFwn

,

c*A J0A r®P.°rt of the United -W<JnS int
States Departments of Labor-and
^ this ®
marketTtv^"
states, the number of terized as a soft market. Its ge
hp

Commerce

-

jobholders

Field

in

718,°°°
Fail. 18, 1957

the

/

7~f

4.

The result

in the Middle

Atlantic States,

,

the

nation

erally

declined

that steel

conceded

^d-November^to

inventory

cioseiy 10 ouipui.

■Winter Dinner at

the

other record- high,

Souther,

ran. 21, 1957

Women's

of

Stock

of

Traders

annual

Club

sociation

31st

ation

•

*
.

-

anniversary

;

*

paper

continues.

647,000

with 597,083.

Another influence on the steel
Undoubtedly,
the
statistical
market is tight money. Many steel agency added, the easing in over-,
users,
particularly small
com- time .output a week ago reflects
pard6s
of

are

reiuctant to tie

money

jn

steei

expected softening in the industry's post-introduction buildup
an

a

up

inventory,

is.to° Card *? c0?e

^ SsP'US a" adJustment to ^

necessity

and

when

the

industry

noted

that

issue

the'eas?of*lome"steel"''produetl
Otter products are even tighter

S1rom°lT8% tt'entifi^st

stiuctuiai snapes ana pipe, par
ticularly linepipe and other oil

urdav assemblv nlar%

overtime oaturaay assemoiy piai~

^chrysw' wUhPlymouth''ten!

country goods.
The always-volatile scrap mar_

'

jatjve

kf ^Str^is^S
pul

uted to speculation of a less-thancapacity steel operating rate in the

This is not

•;

The

January 15,,1957

il.

•k.

§a^ea

strengxn

Continued

an

■

.r

*

-

V

' ;

t ■,'

offer of these Securities for sale•

offer is made only by the Prospectus.

Bankers

Group:

Association
&v'.i

i*

»rvv#

.^va V/'

v:®^ '

N'Xv-.vwi*?

^v.WfSWAWw.'.ViwiiViy

¥

vy.v.y/AV.VMV.'/.W.y

of :

the /Statler

«

.

'.v.y.v.v/.v.vA'.

•xvx*'v

m

V.V.WV,',

...

at

V

-

Investment:
Association ". annual

Bankers 'f

$30,000,000

(.v.v

l.V4V.WWrtVAT.^ "

1957 (Chicago. 111.)

^.VtV.Vrf»V»*iVA'rtW«VA>VAWrty«J

.

4/i%

Hilton'

Sinking Fund Debentures

'^.V.V.V.WAV.VAVAV.V.V.V.V.V

•Hotel.-

-

v

-

Due 1977

.V.VA'.V

mtsp*

6-7, 1957 (Richmond, Va.) " "f

1

Association of Stock Exchange *
Firms Board of Governors meeting at Jefferson Hotel.
,v

Dated

January 15, 1957

Due

January .15,-1977

.

...

fey
|

8-11, 1957

(White

Sulphur

Springs, Va.)
;
I Investment Bankers Associationf'.
-Spring meeting at the .Green»

brier Hotel.

Plus accrued interest from

-V.

.

Copies of the Prospectus may be obtained from the u nder¬
signed only in those states and by those persons to whom
the undersigned may legally distribute the
Prospectus.

Price <99.03%

■

January 15,1957
Sept, 25-27, 1957
■

\
t

.

Cal.)

(Santa Barbara,

.

Investment Bankers

Association

.

{.Fall Meeting at Santa Barbara
.Biltmore.
:
r.
I "
Oct. 7-8,1957 (San
Francisco, Cal.)

*

'.Association
v

,

of Stock Exchange
Firms Board of Governors meet-;
ing at Mark Hopkins Hotel.

Oct.
:

?

10-11,
Calif.)

1957

"

Association
-

(Los

Angeles,

1

Lee Higginson corporation

of

J

Stock

Exchange

ciation

Annual

Convention

.

ats

Annual

(Hollywood Beach,

Convention

at

Holly-




'

.

-

Glore, Forgan & Co.

Kidder, Peabody & Co.

.

•

Goldman, Sachs & Co.

Lazard Freres & Co.

Incorporated

Fenner & beane

Paine, Webber, Jackson & Curtis

Stone & Webster Securities corporation

Bankers Association

wood Beach Hotel.

.

the First Boston Corporation

Merrill Lynch, Pierce,

Fla.)

Investment.

Inc.1

'

"

the Homestead.

Dec. 1-6, 1957

'

\

Harriman Ripley & Co.

Nov. 3-6, 1957

'

.

Blyth & Co.,

Firms Board of Governors meeting at Beverly Hills Hotel.(Hot Springs, Va.)
National Security Traders Asso¬

William Blair & Company

White, Weld & Co.

-

•

>

Smith, Barney & Co.

Dean Witter & Co.

xouowm^

on page,

ivMw,,.

..>S%Vi*X

Chrysler

Corp. is up to 18.6% and. Ford.
Motor Co. to 31 2% of the indus-

Traders' Associ¬

i

'meeting

»

trade

*,

21-23, -1957 ^Dallas, Tex.)

Texas

■

shape

good

anniversary dinner
King Edward Hotel. >
-*

rv.

American

[May

botb

St Je

re-

month, total January output
units is being
pro8.4%
over
December

Gf

this

din-,

llth-National* Instalment Credit
.'Conference. v>V"

.

-.7'>

>

;

[April

on

steel

tighter business - methods. Automotive steel inventories were .in

de-

new f

'

(Toronto, Canada> *

Bomd

[Mar. 18-20,
*

foun(je(j

Z,

chest

-

below

grammed

schedules,

25th,

at the
** *

this

and

.*

v

the ^...:-1:

York City)

the

-

schedule?!

"Ward s''

;

*.

Biltmore Hotel.

8, 1957

Toronto

'

Chicago
; at

to

-

bu^^ctices

only

up

2,479:000

pIosp

31,500,

-V

-

^

-went
of

Thp

*.

the

Security Dealers As¬

at the

*

of

e

[March 1, 1957 (New

*

Beach Hotel.

Hotel.

New York

/ Unemployment
-IffOOO to a total

Governors meet-

winterparty

Sheraton

[March

in

^3^

•
Exchange

28, 1957 (Ciiidigo, III.)-

ner

cline
of

1957_ (Chicago^ 111.)

at Edgewater

Bond

.

Club

p"hTran„uaiU'5BoS 550,000 to • seasonal cutbacks in
dinner at Barclay Hotel.
?5fJt>ti«1o?;iian construcjion .but

T^irms Board

,

sales in the
happens, it will

if this

play havoc with mill order books

demand'for lutol

Up b^.other Consumers, this trade
magazine reports.

report credit the de
repoit credit tne detotal employment to 64,-

1

e

Association

ing

me

cpjt

ported. However, because of th^
additional working days available

a sudden upsurge 0f

Spring.

for

in daily rate

decline

December's

ment of risk in the possibility of

oider^^

Ip'^'Tonnase ca'used "bTdeferSs has been readily snapped

an-

the .joint
joint

(Philadelphia, Pa.)

Investment

24-25,

inere is an eie-

possible only in

the,,agencies

States

_

target"

6.7%

"Ward's"

Hotel.

Night"

«on

geared

(Baltimore, Md.)

socYation" 22nd":Annua™Mid> r?'es for factory workers hit

United

week's

building averaged to the month'?*

get along on a

can

of

Baltimore Security Traders As-

'?hTud

Last

auto-

minimum

,

coming

the

P^ers, "pe Iron Age" states, goal of 29,300 units daily, keeping

whats believing they

to

EVENTS

with

are

ume

caused by

ot

is

ease

campaign.

odds

ing week's holiday shortened voh
of 91,130. The same week in
1956 netted 150,030 assemblies,

of

its

of"what's

.

happening

a

ESrity simphcity
of readinl P"Y an<V* was 6% higher than sales ef .medium-priced cars agundeStending t^tVou use^ ^ '°f last, yfar- -Year-to-year gravated by strict inventory conE su^cesJS? produ^ adveT^iSn^ Pacific r?ngf,d from 10%- in the tiol ,measures states 'The Iron
|al^* Southwest and South
Cen- Age
This week.

(Jan.

determination

_

company.! Tell it--often" and

rpll it in newsv

an.

steel

continued

industry to continue
expansion.

tl.

it

the
and

•.ense

:e

'ground S w^TagaiS the"££S

,^mv0f

(or the

12

->

Financial Chronicle,.. Thursday, January 17,

Conwicrcictl and

The
8

1951

(204)

Dealer-Broker Investment

s.
;

Recommendations & Literature
It

is

Atominum

'

Inflation—Reynolds Metals Company, Economic

vs.

East 47th Street, New York 17, N.

Research Department, 19

Atomic

V

Letter

23)—Comments

(No.

additional

on

Y.

Canadian

74

year

Burnliani

View

—

letter

investment

Monthly

—

Burnham and

of

Story

The

Boundary:

Without

Mills

General

Anschutz
—

i

Chessie
and

and

Family—Portfolio

Her

Ohio Railway, 3809

pictures—Chesapeake

of

of

Bonds.

Philadelphia

■

'

■

"

.

York

■:

on

General Tire
115

&

Temperature

Witter &

Metals—Analysis—Dean

Co., 45

Home

Japanese Shipbuilding—Analysis in curfent issue of "Nomura's

Investors Beacon"—Nomura

Securities

New York 6, N. Y. Also in the
Japanese Electric Enterprises and

way,
-

of

rules

for

,

foreign

control.

-

,

Japanese Stocks

investment

—

in

same
a

issue

'

.

—

•

new
.

exchange

under

'•

Insurance

Stocks—Analysis—Ralph \B. Leonard & Com¬
pany, Inc., 25 Broad Street, New York 4, N. Y. Also avail¬
able is

a

circular

on

1957—Bulletin—Harris, Upham & Co., 120
Broadway, New York 5, N. Y.
York

Bank

Statistics—Annual

comparison and

analysis

Laird, Bissell & Meeds, 120 Broadway, New York 5, N. Y.
Over-the-Counter Index—Folder showing an up-to-date- com¬
parison between the listed industrial stocks used iii the DowJones Averages and the 35 over-the-counter industrial stocks
in the National Quotation Bureau Averages,

used
•

yield

and market performance over "
National
Quotation Bureau. Inc., 46
York 4, N. Y.

both

as

to

period —
Street, New

13-year

a

Front

Preferred
•

man

Stocks—Principal issues offered during 1956—EastDillon, Union Securities & Co., 65 Broadway, New York

6, N. Y.

Measurement

,

:

■

,

Limekiln Pike,

*

-

,

on

Robertshaw Fulton

Canada—Analysis—Blair

Family^ A Perspective Analysis
of Business Research,
School of Business Administra¬

tion,* University of Michigan,
Ann Arbor, Mich, (paper).

4

&

'

First California
Francisco
Ranco

'/'> Farrar • Straus & Cudahy, Inc.

'

Market

Profile

Britain—Supplement 13—

.'Bank for International Settle; mehts, Basle, Switzerland (pa'•

—

First

per).

tabulation

—

life

York

New

Exchange, New York 5, N. Y.
V •,
*;
t, .*
Union Bag-Camp Paper—Analysis—Thomson &
McKinnon, >11
Wall Street, New York 5, N. Y.
..■"
.'

Co., 1 Wall Street, New York 5, N. Y.

*:

*

rrrrr

:

DEPENDABLE MARKETS

■Dealers in

MORTGAGES

"

Analysis of
•Con'eepts, Contracts, Costs, and
Company Practices — Davis W.
Gregg—Richard D. Irwin, Inc.
v Homewood,
111. ((cloth). $5. «
LasserV 1957 "Your Income

,

•

$1.95.

•

•

BOUGHT

Industry)

C. H. TIPTON
.

.

t

.

l-

,

SECURITIES CORP.

DEMPSEY-TEGELER & CO.

111

N.

Y.

Security Dealers Ass'n

L A. DARLING

Broadway, New York 6, N. Y.
Telephone

WOi'th

2-0510

Unusual

Are Your Records

New

Incomplete?
•

Development In

Reprint of Recent Letter
By W. F. Cassedy, Jr., President

Offices,

and Hospitals

Adjust-A-Bilt Wall

And

Sections for Homes

"FOR SALE''

4.8% At 19.

CO.

•

Promising Future

—

SOLD

Movable Partitions for

Growing Backlog (Now $6.2 Million)

Available

—

QUOTED

Strong Financial Position

Yield

'

..

•

BONDS

UNLISTED SECURITIES

Members

(In A Volatile

—

Schools
•

Tax"

;—Simon & Schuster, 630 Fifth
Avenue, New York 20, N. Y.

.

Long Dividend Payer (22 Years)
Earner

.

Group Life Insurance:

•

Aircraft Radio Corporation

Consistent

(paper).

-

Equally Attractive For Capital Gain And Income

•

of

•

REAL ESTATE

•

- ■;

Build¬

Southern

221

25 cents.

...

,

1

Banks, Brokers, Dealers

of

ing, Washington, D. C.

<

,

.

the industrial
Modern France—France

Actuelle,

Engineering

Foundry Co.-^Analysis—Sutrb Bros.
& Co., 120
Broadway, New York 5, N. Y./ Zapata Petroleum Corporation—Analysis — G. H. Walker &

'■
in

development

Stock

United

•

v

Means Business—Story

France

;

annual

-

,

Incorporated—Analysis—Glore, Forgan & Co., 40 Wall
■-.•••'

\

Exchange Regulations in

> Great

Electronic Company — Analysis—Company, Inc., 300 Montgomery Street, San
.

;

(paper).

Foreign

Co., 42 Wall Street, New York 5, N. Y.

'

Y.

N.

York 3,

Fifth Avenue, New

•101

;

and

Street, New York 5, N. Y.
Stock

Winter-Spring 1957 catalogue—

.

20, Calif.

Cudaliy Inc.—

&

Straus

"Farrar,
.

Capital Fund of Canada Ltd.—Annual report—Carl
Instrument

Philadelphia 50,

—Bureau

-

-

Corporation—Anetysis-^Unlisted Trading Dept., Rm. 707,
Haupt & Co., Ill Broadway, New York 6, N. Y.
: r, •
Nation wide Corporation—Analysis—Morgan & Co., 634 South
Spring Street, Los Angeles 14, Calif.
v.; V v
.

—

Consumer Credit and the American

Ira

Phaostron

Air

and

Instruments

Pa.

Co., Incorporated,* 44 Wall Street,' New York 5, N. Y.' Also Vk
available is an analysis of Louisville & Nashville Railroad.

New York

Beautifully Bound Set of

M0RELAND & CO.

"CHRONICLES" from 1938-1950

Members

TROSTER, SINGER & CO.
*

Members:

74
V

York

Available in New York
City—Write

Midwest

or

*-

Detroit

Stock Exchange
Stock Exchange

Security Dealers Association

Trinity Place, New York 6, N. Y.

HAnover 2-2400




New

Teletyp es NY

1-376-377-378

Phone REctor 2-9570

Edwin L.

1051 Penobscot

Beck
-

c/o

:

(No. 138) — General
Scientific Equipment Co., 7516

;•

-

of

On

Bulletin

r

.

Co.,

.

Company

M. Loeb, Rhoades &

Monarch Life Insurance Company.

Market Outlook for

•New

-

Nickel

(paper).

,

Knox

Yamaichi Securities

Co., Ltd., Ill Broadway, New York 7, N. Y.
Life

International

Also available are data

J.

request.

b
115 Broad¬

.

&
.

Ruberoid,

N.

Princeton,

:

Rubber Co.—Memorandum—Goodbody & Co.,

New York 6, N. Y.

/Controls and

analyses

discussion of the

securities

Current information

are

J

,

Oil—Data—Bruns, Nordeman & Co,, 52 Wall Street, New

York 5, N. Y.

Broad¬

Co., Ltd., 61

I

II

Section,
Department of Economics and
Sociology, Princeton University,

•

Broadway, New York 6, N. Y. .• ...
Brothers—Report—J. R. Williston

way,

Montgomery Street, San Francisco 6, Calif.

Selected

—International Finance

Combustion. ' Testing

'

Interna-s

of
in

Sterling Countries—A. R. Conan

Oppenheirner & Co., 25

Gimbel

High

Patterning
Investment

tional

•

Stock

Without Boundary—The

$4.75.

Street, New York 4, N..Y.,:
Cliamplin Oil & Refining Company—Analysis—Laird, Bissell
& Meeds, 120 Broadway, New York 5, N. Y.

New York and
full years—single
copy $10; yearly (6 revised issues) $50.—F. W. Stephens, 87
Nassau Street, New York 38, N. Y.
virtually every active stock
Exchanges covering 12

on

—

I

7

Gray—University of Minnesota
Minneapolis
14,
Minn.

Broad

ing monthly highs, lows, earnings, dividends, capitalizations,
American

Analysis

York

Press,

•■

McDermott & Co., 44

.

—

|;

New

Inc., 99

Story of General Mills —James '

Co., 36 Wall Street, New

5, N.'Y.

Bristol-Myers Company

Street,

Changing

v ',•.

|

York

(paper).

Business

circular on, ACF Industries.
Co., 30 Pine Street, New

N. Y. Also, available is a
Bliss—Analysis—Stahley Heller &

Graphic Stocks—1957 issue containing over 1,001 charts show¬
volume

.

&

York 5,

-

District

School

Philadelphia

and

Aircraft—Circular—Bache

Y.

Organization
Industry As-

and

^

-.■1;

Street, .New York 5, N. Y.;,

Wall

Labor

of New

Church
N.

and Telegraph

Corporation—Analysis—Peter P.

Beech

&

City

Union

Atlas

Equipment Trust Certificates—Semi-annual appraisal—Stroud

of

sociation

.

Terminal Tower, Qleveland 1, Ohio.

Company, Incorporated, 123 South Broad Street, Philadel¬
phia 9, Pa. Also available is an appraisal as of Dec. 31, 1956

ternational

Co., 120 Broadway, New

-

Employers and the In-1

—Commerce

:

Corp.—Memorandum—Moore, Leonard & Lynch,
Trust Building, Pittsburgh 19, Pa.
•
'
:
'

,

,

p

American

*

Steel

Armco

Minn. $4.75.

.

*

,

—

Street, New York 5, N. Y.

Gray—University of Minnesota Press, Minneapolis 14,

James

'*

•

Advertisers, Inc.—McGraw-Hill P
Book Company, Inc., 330
West!42nd Street, New York
36, N. Y.

Company—Analysis—Mc¬
York 5, N. Y.
Drilling—Report—General Investing Corp., 80 Wall

Donnell &

able is current Foreign Letter.
Business

National^

Trinity Place, New York

American Telephone

Also avail¬

Company, 15 Rroad Street, New York 5, N. Y.

Advertising at the Point of Pur¬
chase—Association of

Report—- Troster, Singer & Co.,
6,'N. Y.
v . •
t
American Gas and Electric System —1956 Annual Report —
American Gas & Electric Company, Mr. W. J. .Rose, V.-F.,
Dept. B., 30 Church Street, New York 8, N. Y.
A. C. Allyn
American Hospital Supply Corp.—Memorandum
& Co., 122 South La Salle Street, Chicago 3, 111.
Corporation

Aircraft Radio

Broadway,- New York 5, N. Y. Also available are 1956
end prices of Foreign External & Internal Securities.

120

*

'

City-Figures as of Dec 31,
Bond Depaitment, 16 Wall

Y.
•

Hanseatic Corporation,

York

Market—Discussion—New

Banks in New York
1956—Bankers Trust Company,

Street, New York 15, N.

atomic merchant ship program, progress
in atomic chemistry with items on Westinghouse, El Paso
Natural Gas, American Machine and Foundry, Foote Mineral
Company and Newport News Shipbuilding and Drydock Co.
—Atomic Development Mutual Fund, Inc., Dept.
C. 1033
Thirtieth Street, N. W., Washington 7, D. C.

uranium contracts,

Bond

Stocks-Six issues likely to
of
economic and market, contingencies5-in
^ ^
"Gleanings"—Francis I. du Pont & Co., 1 Wall btieex, ixew
York 5, N. Y. Also in the same issue is a discussion of U. o.
Government bonds for Estate Planning.
Shelter

Ten Largest
.

Man's

:•

"S3S
Storm

understood that the firms mentioned will he pleased
to send interested parties the following literature:

Business

Yolk 17, N. Y..

42nd Street, New

tion, 30 East

Chronicle, 25 Park

PI. N. Y. 7

-

DETROIT

Woodward

2-8855

Branch

26,

Building

1VHCH.

...

Offlco—Bay

City,

DK '6
Mich.

Number 5604

185

Volume

The Commercial and Financial Chronicle

...

'

(205)

who is the most likely to be
able to command the support of a

man;

his

workhlg'-majorityi

.

Effect of New BritishPiemier

however, that Mr. Macmillan as
Prime Minister, will .be;no more,,
in favor of the floating pound;

: The >response
of the markets to the Queen's de-

Upon

/cision

shows

widely

Ry PAUL EINZIG

not

held

only

which might not have been the

known economist,

Treasury is anxious to

the ground for

prepare

the

he

the

also

Macmillan's

was

is

safe

when

Exchequer..

alone
after

the

to

assume,

Chancellor

For

of

Hugo Weinberger Has

Government

Stock

of

,xr

Macmillan's

Mr.

the

Treasury

.

He

office

*

that

there

a

his

feeling

the

have

re-

of

uncertainty
unpopularity might at

time
time

any

which

would

create

the

to

10
Downing
continuity of the
economic
policies,
foremost

and

an

eco-

nomic expert, and is certain to
continue to take an active in-

in

terest

of

economic

,

TT

_

Arthur

Hageman With

KormeiMii & Co., Inc.

his

Government

in

J.—Hugo J.

has formed H. J.
bej-ger. Co. with offices at
Exchange Place, to deal in mvestment securities. Mr. Weinber§ci was formerly an officer of
MaierUo., Inc. .Prior theree WJSJV1. *Jein, * a
Herzo& & Co. in New York.

v

existence

Conservative

first

is

CITY, N.

u

^

from

transfer

a

government's

situation

a

continued

.

Bank Rate Outlook
r

.

^emberger

the

justified..

*

Street secures

mained

was

policies

after

Kormendi & Co., Inc., 70 Pine
Street, New York City, dealers in
aim will be the reinforcement of •< investment securities, announced

departure from the Treasury.
The
new
government's
primary

there would become doubtful. As it is,
Conservative there can be no justification for sterling—not with the aid of ad- that Arthur G. Hageman has beBritish public almost completely Government with
a
sufficiently such fears.
<
ditional dollar facilities but by come associated with the firm as
by surprise. For, although some secure
majority to justify
the
'
means
of resisting inflation at - manager of the Municipal Bond
newspapers Prime
Minister in rejecting the
Assures Fixed Sterling Parities home.
Department.
>

LONDON, Eng.—The change of

Stock

is !; that

-Exchange

Britain took the should be

in

government

stable

a

.

.

...

_

,.

...

_

•

.

forecast-

were

Socialist demand for

ing an early
resignation of
S i r -Anthony

r-

eral election.- Such
no

House

But

in-

an

tive party felt so strongly against

lar forecasts

Mr. Butler's

Premiership that they
might have been prepared to risk
even
a
general election. The uncertainty arising from such a situ-

for

on

twelve

over

months." The

that

dur-

ation would have resulted in

ing- the last
days of
Eden

Regarded

re-

a

view

been

weak

just at

a

government's

<

of

eco-

In

far

so

it is possible to recredit
squeeze
without

the

lax

as

ship with confidence.

Exchequer

tatingly
favor

with

himself

maintaining
of sterling.

the

idea

the

While

introducing

floating pound, Mr. Macmillan
jected
soon

-

the" idea

as

he

Mr.

Minister,

out

succeeded

Chancellor

of

in

present

Mr.

time flirting

some

of

unhesi-

He

committed

of

parities
Butler was for

Had

have

point

the

of

hand

in

sure

favor

rates.

The

duced

in

as

Exchequer,
Prime

Macmillan

expected to be jeopardized
for the sake of yielding to pres-

re-

Butler-become

Mr

not

the

Butler

Mr.

so.

will undoubtedly do
But the position of sterling is

would

lower

of

bank rate

due

course,

interest

will

be

but not

gime

•/

firm

distinctly

was

and

ious

was

so

Stock Exchange—es-

London

the

j

sterling time when the Treasury is

-

administration

mipan 1

policy in many Conservahis position was
secure
in
well-in-

his Suez
I

tive

But

strongiy

*

about it

rritw of

circles,

political

formed

of

face

in

ground

frontal

Queen

attack, the Con-

serVative
'

that,

Socialist

Party

out in an article strongly in favor
of" the floating pound.
Possibly

of

Con-

Mr

followed

not

feel

so

do Conserva-

Bntler

u

So

•

the

the lished tradition in
the

on

the

well-estab-

do
as

tlve;cri**cs ot, 1 r:

quarters,

considered
;

they

Chancellor of the Exchequer
might have revived the idea. In-

new

choosing

the

chances of

an

inspires

~tew ^n£lancl> lnc-» ho Devonshire

blreet-

(Special to The Financial Chronicle)

ST.

has

connected

William

become

''r

T.

LOUIS,' Mo. —Russell

State

Incorporated,

North

314

way,
members * of
Stock Exchange.

Socialist

This announcement, which appears as a matter

->■

the -Conservative
have
justified the
for

demand

'

to

the
,

Had

ment.
wished
would

Sir.

-

Not

certainly

have

not

the

c

-

.

>/

v'

;

Arkansas Louisiana Gas Company

were

widely realized, hence the firmriess

of Sterling

and of the Stock'
1
Exchange.
Any
anticipation of
developments that might have in- •
volved the risk of an early gen- '/.
caused

have

election^ would

y::

•

:

.

.

eral

■/-,

...

.

considerations

.These

-

964,454 SHARES

::

for

suicide

political

Party.

January 15, 1957

New Issue

».

loyalty to its Leader,
disloyalty would

meant

a

been

but also because

have

ofjer

office,

in

overthrown by his Party, not, only
it has a well-established
of

an

Edenr•
he ;

Anthony

because

tradition

of record on It/, is not an offer to sett or the solicitation oj
of these securities. The ojjeriny is made only by the Prospectus.

Socialist Govern¬

a

remain

to

any

early

an

election which, in given
circumstances,' would have meant
general

the advent of

buy

:r. COMMON STOCK
"•*

'

*

'

(Par iSf alue $5 Per Share);.'

'

o
.

*

flight from the pound and a
slump in the Stock Exchange. Ina

deed, the immediate effect of the
announcement
Eden's

weaker
was

he

distinctly
trend in the markets. This:

because it

Butler, and it
that

was a

-

.

•

widely known

was

strong section of the ConParty
would-be. unwilling to support him.
-

,

'h

Mr.

by

a

servative

.

Price; $22 Per Share

.

assumed that

was

be". succeeded

would

•

Anthony.:

ofy Sir

resignation

-

"

Copies of the Prospectus may be obtained from such oj the undersigned
and others as are qualified to act as dealers in securities in this Stale.

..

..

Has Greater United Support
The

main

Sir

why

reason

Anthony/Eden decided to resign
is

that, realizing his unpopularity
wish to
become a liability to the Con¬
servative
party on. the eve of
some
important by-elections. He
felt that his party and the gov¬

EASTMAN DILLON. UNION

ill the country, he did not

ernment

stood

a

better chance

of

living down the Suez affair if it
vvere led by- someone else.
And
'the main reason why the Queen

,

decided

invite

to

.to.form.a

Mr.

government

inviting

instead of
view
a

bet¬

ter chance than the latter to secure

united

What
of

view

support

matters
of

of

from

sterling

the
the

and




STEPHENS, INC.

EQUITABLE SECURITIES CORPORATION

CO., INC.

.

GOLDMAN, SACHS & CO

KIDDER, PEABODY & CO.

LEHMAN BROTHERS

INCORPORATED

MERRILL LYNCH, PIERCE, FENNER & BEANE

Macmillan

Mr. Butler is the
that the former would stand

the

BLYTH &

SECURITIES & CO.

party.

point

of

the

STONE & WEBSTER SECURITIES

CORPORATION

DEAN WITTER & CO.

E.

with Stifel, Nicolaus & Company,

•

in

would

ranks

.•

•-

-

...

split

Any

/

Gieselmann has become affiliated

affiliated

Co.,

Stifel, Nicolaus

(Special to The Financial Chronicle)

could not afford

to be disunited.

S.

with

of

Joins

with Lamson'Bros. &
Mr. Butler might have listened to Bank Building.

now

Fusz-Schmelzle & Co., Inc., Boat-

ST.

III

is

men's Bank Building, members of
the Midwest Stock Exchange,

(Special to The Financial Chronicle)

LA SALLE,

LOUIS,. Mo.— Clifton

Jamieson

With Lamson Bros.

Scott

.

home

at

early reduction

—

:

;.

With Fusz-Schmelzle

the bank rate.

111.

#

Macmillan

have left" the Treasury, and the and abroad, the better will be the

deed, a few days before the
change v of - government, : Lord
Chandos, who was very much the
"power behind the throne" during the Eden administration, came

number

a

servatiVes disapprove of Mr. Mac-

pated/ Even though Sir Anthony
Eden- was sharply criticized for

,

prepare the
large conversion operations,

^rue?

1 that
•>

to

some

pecially Government loans—shows
no
acute crisis was antici-

anxground for

v

H.

r

un-

doing so it does not run the
risk of a relapse of sterling. The
the

..

Pio^^r1"^
canning corporation ot

°

w

in

confidence

.

Alfred

STON, Mass.

H

til the government is satisfied that

more

Planning

(Special to The Financial Chronicle)

re-

"

;

Joins Investors

coming into conflict with this obt
jective, t he new Chancellor of the

as

would

the-

of

the

policy, there is reason for
viewing Mr. Macmillan's Premier-

sterling, and the Stock Exchange

re-

from

nomic

vival of the speculative drain on

few

the

Commons.

fluential section of the Conserva-

simi-

off and

Einzig

of

been

making

Paul

consti-

practice, so long as the
government is not defeated in the

newspapers

have

fact

a

British

in

tutional

those

Eden,

foundation

early gendemand has

an

<

of

reason

sterling

announcement

Queen's decision

^

Own Investment Firm
JERSEY

this,

firmness

the

of

some

*

;

™

than

Exchange.
Had
Sir
Anthony Eden prolonged his term

hand in hand with greater

go

confidence the Government inspires.

Mr.

but

inspires
confidence. Which is what really
matters from the point of view of
the prospects of
sterling and of

large conversion operations. Dr. Einzig believes the chances for

early reduction in Bank rate will

London

servative

pound while Chancellor of the Exchequer. Choice of Mr. Macmillan is also expected to assure a strong Stock Exchange at a
time when

in

is

circles/

leadership the stability of the Con-

floating

a

view

It

*

had

case

Mr. Butler been elected in view of past flirtation with

this

financial

Under

abroad.

Fixity of present sterling parities is seen assured with Mr.
Macmillan's elevation to Premiership, /by internationally

that

in

advice.

9

WHITE, WELD & CO.

Broad-

Midwest

.

I

Commercial and Financial Chronicle

The

to

..

> Thursday,--January

(206)

I7f 19^

more

than

OS
of1 this^clearly^spelis*a Yo p,--

AU

Banking and Credit Laws
By HON. A. WILLIS ROBERTSON *
U.

Corporation pointed out re- interest rates but .they are less ex- r would ^ be k more . workable and
no respecter of persons, pensive
than Ithe 'alternative .. bf more easily understood;v and (2)
/It strikes with equally devastating more < price ■. inflation.. This ^fact, tp ■ add :■ new vstatutory
•,authority
effects the small business-and^ the must be made clear to the cus- where needed, to "meet the mod-

;

cently, is

inflation prediction that did

Remindful of Jast May'* price

statedThJ

undertook-this study; I

Steel

Virginia

Senator from

S.

in..the country

the largests banks-

trend
toward-* inflation: had, substantially - increased theirour primary objectives- would be'
and inflation, as the Chairman"of loansAto-small-business last y$a .
(j) To remove obsolete provisions
the Board of the United States- it is .-unpleasant to, pay higher., from the statutes so that the laws
tinuing

.

that

materialize, Senate Banking Committee Chairman, who, in

"'-'/-y ^tomers of: th.e. commercial..banks,^ermday rieedsmf^our economy. {
PttPr of the First'-' which, with * their.$200/billion .of ^aid-also -that we -would - not atInk of New "York" assets, have'a-central ■r^e;tg:J>fey..l^mp^to- ma^e^angH hivolving
noint: strikiiTglV^1 • credit tt.estraifet,* Bankers.must abroad theories, of r credit;,; control
.CC1_
rppaiiine
-banking supervision which
issue by reea litig that explain to customers the stake all : and
that,
^ ^ ^ operaflon ofXn-should have the consideration of

large business.

-

now reviewing our banking and credit laws, terms
key to our money supply and, thus, our economic
Senator Robertson perceives retail price rise, rising

capacity, is
credit the
health.

m

"con¬
tinuing trend toward inflation." Decries small annual price
inflation rate; demands moderating .monetary policy to keep
boom within stable economic growth, and praises Federal
Reserve efforts. Issues progress report on Committee study
which includes proposals for: bank stock option plans; per¬
missive cumulative voting; industrial, commercial, and liberal¬
ized construction loans; merger regulation and "streamlined"
bank reports in specific instances; and new legislation per¬
taining to savings and loan association branches and mergers.

interest rates and

heavy demand for credit; in short,

a

_n+
recent
„

a

,

•

,

■

.

,

innh Ln lrk

effective?' monetary policy which;;a,full-time;. Commission,

ofmortgage
War 40 billion maiks of

w

to

German

the

'* by

national wealth,- but

noint where it-

to the

them

of

t.w

•

I

acting

am

Chairman of the

as

full Banking

and Currency Committee in its efforts to review our

S.v

/

Xstudv Progress

■

■al-

Report

than

Lanking

credit

and

and

laws

to

mmend'

reco

worthless

loans,

„

of

course,

■

by then:-arid

.

will
i. h

Some,of

m o

f e^

1 y

to

o s e

L

the *

bv

Congress

last

Federal

'

pre-

.

-

.

recent

most

.

.

Changing

'

kill.-here are- some samples ol the
supervisory^agencies, trade organ-> outdated statutes we-proposed to
izations in the financial, field, thexT.eP$alv
" •
v
'/ *•" T-y*-VCastigates Slow Inflation
\
The
(■prman
exnerience
Wltn
The
German
experience' with .Banking and Currency Committee . (1)/ The; provision for double
^staff,,/and?our 27-man Advisory, liability on national bank share-

T

+.

inflation

/^To^iilustrate 4he-;na«^ure- of tbe

adjournment of the,

.

i

-

f

„

.

.the

wrk-T"

done since the

has occurred,-- and • explosne .inflation . dunng , and,
n m.
..
,
.
t;,holders -which : was • abolished in
studies of the after World War I Avas not unique:
10o7
;
It was repeated in a number of ' "The Advisory Committee, which
V
problem would lead me to give
(2) ^The- ipore: than 50 sections
to bankers today the same advice countries in World War II."Other includes five-former presidents of * '

•needs.

laws is the

classes;%\\dpedv:^g^^

dieted last May

my

nt-day

p re s e

*u

r

adapt

e m.

1

e

*

the conse- provident middle
from
it
and out the pool of loanable funds, arid
upon the
bankers of the erased every sensible reason fOr
Mountain States to cooperate with saving.
\/r%
/
Federal agencies to prevent fur'
"
"
'
" :
growing

called

ther price inflation.-:

-changes which-,-

we,

/were
^
\
' i
r^.^ntucpated.- when, we first
inflationRecently, :I gave to the press a, thought of modernizing and coclihad given the wealth of the crfedi- comprehen^ve statement concern-/ fyI11g, the banking laws.
tors to the debtors
destroyed the
the draft bill which will^serve • ■ /
*.,V \
;
The

cent.

pansion and some of
quences

^

/- I. believe that, our bill is in line

-

*

di>

....

.

equal; one^-U.

to

P,

Now, briefly, as to the progress

*

,

...

as

now

depredat^ of "our ftudr. o^-the. Ranking ahd;;.AVith thaf; announced' progyam?altook 42'bil- -credit laws.
/
/ /-'V '*
■ -fhough-dt <prObably,.contains some

1923 the mark had

lion

to>

Of.ec?r>9W*,.,

one-sixth

about

represent

-such

a
*J
free',enterprise ;the Advisory Committee has
V.vTr/ 7'
recommendedi

is-essential

I

gave

months ago.

seven

American .Bankers. „Associa—- of xlaw/dealing, .with the cncula-

countries, like the United States, the

:

"

tion .of'national bank notes, which
have not; circulated since 1935. •

slow—burning or tion, - considered several hundred
But, 'while"a n proposals to change? the existing
should note that, Contrary to the 'creeping inflation.
2 or 3% a year constantuise" in laws; and its report was extremely
**vr>pripripp nffpr pvprv nthpr

re-

By

irponsibility of
t h e Congress,
:?nd the Bank¬

have had

background,

of

way

only

we

.

a

" (3) -The more than 40 sections
law /:dealing

of

■■

with

Natiorial

ing and Cur¬
rency

Commit¬

which

form

v

„/:-

,

t

o±

vertising

piopeily

Most

^dv ice

ose

controlled

why

this

of

inittee

the

a

narrow

in

securities; in.. 1941,

d

t

j

rise

services

no-lf

1

k

reflected to

prices.

retail

food

prices reversed

rise « ™

index costs the
a

year.

may

month.
vot

too

Will testify

at-these hearings but
also the backing of financial lead¬
ers
in each community who can
help the voters, to whom we are
ultimately

trend

fronting
that

by the tendency of farmers to cut
the crops-when prices ,get

only the advice of those who

low.

retail

the

The
rhe

outlook

foi
for

prices also is indicated

continuing

the wholesale
T

.

.

,

prices.

need

c

remind

hall propose.

of

>ou

it

need

clear

seeing
a

-now

credit

the

c

redit

i

loney

of

aspects

This

is

t
t
ter of

has become the key to our

supply:

the

and

to-

monetarv

policy

technical
technical

\

whether

round
ct

t

and

in

shall

we

the

continue

ecanomic growth.

and

•

•

a

"

-

{

ueiu

ter

and

ruinous

^
lievt

before

011

t

lb

+

#

require

fundamental

constant
*

they

t..«.

billion
billion,

charges

con¬

than

the

in

,nd
and

are

com-

total

the

the

are

Association,

(ention to

our

♦An address
<-'-tson
la

«o
<

but

illness
the

rapid industrial

Predicts

at-i
ex-

in

Donald' L.

his

Rogers.

Banking

before

the

absence

and
Ninth

—

Chicago,

..

ill-.

National
....

A./57




BanK-

Jan.
.

'»

i

s,

States

in-

•

mjy be .obtained jrom. the- undersigned* onh
w.hick\thesunder$ig»ed- yna-f

—' "
.
comfrlte»ce_<■ ujth_ the securities lawstof.'thes-re!■pecttte^j-ttes-;• -y ■

;
;*'■

-Y

K

.

.

.

•

w.

>

9

of

monev

market

.

'U

*

i,

.

Smith, Barney.
.

savirifs.

r-ip

•

;-

jCo.;: .• *'

"*■

-K

:

*

■

■

^/ 2

/

....

Kuhn;Loeb i€a.?5 W/E.
t

/;.

■

Blvth d: Co,, Inc. V /

y'V-

'.-,V

•

•'*

.

.

Corporation
r/

Bakej, Weeks & Co.

"

'

.

Dillon, Union Securities & Co.

Giore, Forgan #

/

Borrowers obtained $6:2 billioir
on
commercial loans
during :the
first 10 months of last

the

•

V

i

Coldman, Sachs

& Co.

-

-

Harriman

«

.

..

year^Cor-

Kkhier. Peabody d.'Co.

$7.6* billion in
new-capital issues. State arid mu-

porations borrowed

Continuing Inflation
*

:

,;w•.

'

tmhftni~ir

to

"

>'

*

V*

f.

Ca.

Ripley

billion.

The outlook today is for further
iy
pynaTicinn
CXpailSlOn in private de-

Residential

real,

-

Lehman Brothers

estate

credit increased by
*
credit
$8.5/.billion 7 Strine
during the first three quartos of c — -

nd
inands iOI\ gOOds and services,..in-

1956.

Consumer credit also ^in-c
utUization of. Tnanpower, -crifeasetl snbstantiallv
-of-~mamT>nwer "cneaserf sobstantially.
"
5
v.i
J
-plant. gl'OWtfl ID.
Some bOITOWCt'S
may
nqt be
-

.

..

:

V

Lazard Freres dL Co.

»-

«

-

-

-

pnysieai volume of plant output; able-to obtain all the
money they
aad, as a consequence -of these
want; but the credit stream is far
,

*

r

•

January 11-1957

x

"

-r

" •i- /

'
.
<
Dean Witter 3c Co,
y

*.

-•

iynch. Pierce, Fenner dt Beane

Websteroe^lifutes Corporatioa

•

..

~

Merrill

Co. •••'?

Incorporated

.

nicipal govermnents obtained $4.'8

.

ctmno.

Currency tensive

Conference of the American

Association,

due

Counsel

a

r—w/y-"-w"■

—:

-

when I entered

Trend

prepared by Senator Rob-

Senate

ooimittee.

</»-edit

called

delivered

by

I

v

'
rtiUs-Tw

*

reserve

the

larger

rtnnual convention of the Colorado

Bankers

*'% toose

supply,

self under the impact of "climbiri« *:
credit demands pressing against^ Eastman

interest

Congress in 1933.

the

;v

some econ-A credit expansion and has" alldwed

revenues

were

•

subscription period the several Underwriters && n&t
Stock," all as more fully set:forth in the Prospectus,
>
•
\
y
;
.

from^iiS

"

addressing

t

gross

tv~

that -debt

on

Common Scocli

Copies of.the Prospectus

,

5 billion and

government

May.

if

,

sideration.
Last

or

^vv11!e.n

* ?

S275
$275

are

Federal'Reserve

funds to? the- *
hanking system which could-have I The First Boston
national product tell to an annual served as the basis for -further •* : '• ~
muai

the

;

Subscription Price $56.

requirements for member banks
..It has merely retrained

t

v
(he problems
(ion which I feel

which

"

the

^^ government raising thefrom its
securities
lote 01
portfolio
by

:"e omists estimated the total wealth
" ° the hankmg 0f our nation at only $323 billion,
? €xa^ine
Today we have a national debt of
ot credit and mflaa

t

discuss

I

^

-

done by:^sell--

nign

^t

1.

Therefore,

•

*<.■-..
/T- ;/
fh'jfe r"
:evtisnced'\bt^Su9sc*tp1tion'Wurfjntfs-fo*s#b8Cf&*y{o*-'
"
h'
-b&i-fL kmsJcky th&'Cojpvratwn.fo^h&idex-fr^~4\; 1957t' asMOfetfullj*•

P?Fth ^'S!?.1?-086 H\thedePreBsion plying - additional
the Thirties, when our

depres-

on

S'-nd

a

1

>

*.

.j*

®ttempted to bring

S^e-money
it couid have

These figures can be bet-

understood

basis

corisequences of radi¬

inflation

TO

-Y,/

>

'

/
;v

*•
*

19o6.

billion.

a

/

-stable / *

..

ReserveS

esaJmghsas. which

con

,

the

enn-

on

1

hardly

taxes also reached record hiehs

determining

stable- financial

suffer the

cal

is

currency,

factor

the.

is

mrrenrv.

(rolling

s

--V 0*

.

* e^rt f jnioderajijtg iri-; 't

Actually,

rupply, in terms of total medium
rvliU —^
c>;I exchange, rather than merely

• at

M >

"

me

^kich cannot last forever, .\Cithin

of

vious"vear° Personal^Tncome after'^"aSv,n-0ti

money

'..

CE=57

kir°'3 ;re^rd annVJal r^te its-movements to limit the jnonejv During and after the
fourth quar- supply.
>« ^ •
//. ; ■ ?, •/ shares.of Common
This was an increase

our

because

true

•

1

\cdri-;

concent

with

*•

.

,v

situation

..

economy.

'

.

'"v"

-o—•

^ ue,k° cri .the de!nand for .fu'nds
c
W1^ keep - this boom,;\

-

retail

*.

\,
;

Praises Federal Reserve "• >
tal
tight .money
Io this connection,. *
-uinit;
ion,.Lsayfquite
situation
created, by continuing
frankly toyou. who are
In building this background of
strong demands fiom consumeis, with the
providing of credit,1That
understanding, it is especially im- business, and government.
^
f feel the Federal
f »ortant that we have the cooperaOur gross national product was has exerted
a sound influence
i'on of those who are concerned
by

ftand the need for the changes we

a

*

pricepublic $2^'billion

limits required for
-v

,

I

us,

we

^

price index.

beyond

wholesale

by

strengthening

,

.

Looking

responsible, to under-

future

v>

-

'

down

We shall continue to need

V

harmless

seem,

"

With, the

be accentuated in the future

That

upward.

-'

itself

moved

not

Cithe'"^ when.it is. .realized .thatf^t'/^^^CO^^tCCl^COrlJOrStiOfl «•?
» ^e consumer

lesSer extent

and

'•

~

6 effects ot even a kttlein

flation * do

cheaper retail food prices". Dur¬
ing 1956,* however, the trend of

a

1,088,179 Shares;
t.

f

Th/

n

1

tentative
1 ill,
on" which
public. hearings
will be held beginning later this
preparing

,

*.■*

.

.

-

«enerallv

i-

a

had been destroved:
..

ol

in

of the nation

for instance
term&l.Qf buyin

found that iri

years

I

±.

We have had the benefit of their

fidviee

occurred,

urging
them- to
buy; \
Savings Bonds be¬

States

those who had boughf these

ThZ has resulted power the acciunulated interest of Y
»
yr ,
This

continuing

including .some of Jhe top

irom all parts

increase

ge.

.

study.

in the Held of banking, drawn

men

the

tions since then jiave, been within

to assemble an Advisorv.Com-

was

United

it is true, before 1952, and fliictua-/ now

first move,

my

undertook

we

by

affected

or

That is

laws.
when

ogized to readers for running ad¬

cause

_

La

present-day banking.problems by ,in-1932^forbade organization

fact that the damage is being more

November

Retail Price Outlook

.

exceptthe-

assistance

and

this

do

cannot

^We

for

117.8% of the 1947-49 average

legislation in this field should

however,

since

rrhl ttlr,

II.

from

Index
the

recommending
(/ike.

rise

to

World War

Labor showed

(lie function of

new

continued
of

figures

Robertson

W.

A.

have

Senate
,

end

and

House

/

have

the

of

tees

x

"

:

White, Weld &

Co.

Volume

Number. 5604

185

.

.

The Commercial and Financial
Chronicle

.

(207)

Stte019^0"8''0'™0
gold not

V

S;,;

•

.

• —

v

t.TZr0r5'

.Streainhne

would - islation and

requirement?

acted

on .re-

.on

that

during

should

it
the

85th

be

White Adds

Con-

thit

Jains Interstate Sees.
(Special to The Financial Chronicle)

ST. LOUIS, Mo.—Oscar A. May
are now af-

hanknt'

-

and Pred. W. Rudde

bilf

^Soflhe

Staff

to

(Special to The FinanciaI, Chronicle)

Tb^vPrOyisions. authorizing'porls^y natrona) bapks and Fed- gress.c
thebrfgiiial Orjg^fffiation cdfnmlt- ff®. -WW? meiflbeh bai>ks, aW- i-hon/dherefore
tee for the'FSderM Reserve Sys- :
°w4"f the supervisory, petals
tent, which was set up in 1.813.:; *
^
bank ?nvo!v^ 'this
(5)

•

,

you

<#i^tbe

-

Midwest

facing-banpng

able men to.the profeisgiori and
obtaining' adequate - capital for

position with

#^ltcust

attracting, cap-

are

industry- in'at-

'

,xr

-

.

\

*;>■'!'
v-~. *
have , met-. the problem of*

*

is

*

now

.

—

F. I.

Walter

associated

dii Pont Adds

CHICAGO, 111.—James C, Rath-

with

Street) members of the New York

Francis

has

become

I.

affiliated

Pont

du

$4,875,000'■

;:

Co.,

208

He

was

V.;v:..V;

U?a^01? ? ou d follow.

The proposed bill also contains V

Missouri ;PacMc Railroad

/

,

believe banks should be permitted

strengthen .their .-capital struc-

to

ture

indhe.sameimanjner as other
corporations, • undor adequate su-

pervisipn^V
'

* :'

^

^

Recognizing

•

-

«

-

t\ccnc.

¥T

:on

has

resulted

from

'
.

f"fJbaVTITIST a,,cl)credlt

the -

'

i'

shareholderskpfreach .-banh decide
..

-

J'.

,-

nrohose

-a;- Cn

he

,, f

.rtlld

loan

to

year.

reeulate

company
inergers

To

mature

^

-

.

$325,000 annually Januury 15, 1958 to 1972, inclusive

-guaranteed'mcouditiouaMy .aa-to payment pf-par value aud
Missouri Pacific Railroad Company.

dividends by omlorsomtnt by

.

MATURITIES AND

'

•

'

4.40%

1958

: /

:

YIELDS

4.10%

i960

1959

4.30

1961-72

.

4.50

We

savines

have

■;

'i

'Issuance and sale-of these

a'nd Saving

and

i

■-

•

a

Seriate last

/

;

.

's

passed. the

*

.

-

contained in the bill that

-

:

.

.

To be

Tb ^.^bes oflavings ^Tan
associatioris with the sam^Diovi^

lSfhprith^

(Philadelphia Plan)

./

,

pr°;

'■

Equipment Trust Certificates

'

<

.

.

bilL contains
wlth /avlnJ!

csmpulsoryL, provision forcumulalivd .voting for national hank
directors, .we have- proposed ;to

conducted.

:

.

in addition to proposals relat-

-

the tBsrupUve ef-:
which

sometimes

/ —

%*. L Assns- and 0mUt l'nM>ns

.

v

x-r

bank management

feet

4^2% Serial

Sive the F. D. I. C. more author*:dy; to meet problem situations. -

ap-

.it-:'"

The

.

Offering Circular

such
,

Certificates are subject to authorization by the Interstate Commerce Commission.
be obtained in any State in which thii announcement is circulated from only
may lawfully offer these securities in such State.

m.ay

of the undersigned and other dealers as

,

also .. have - proposed lm- plied to savings and loan associachanges; an..-.the,*lending tions andi their officers the same '
■authority :of; national banks. New standards of conduct applicable / :
provisions hrive been added deal- to banks and bank officers.;
>"■>
ing with leriding on frozen foods,
We have probosed annual audits*^
dairy cattle, and consumer instal- 0f credit unions, either by inde- ~
ment paper.. .For the first time,
pendent accountants or by the.
national banks would,be pemif/ Bureau of Federal Credit
Unions,;

./We

portant

.,

ted

to make

.industrial and comloans;' and the. aggregate

merdial

liinit

all

on

would

construction doaris

Also, for the first time

maximum

make

working

capital

it is my

in

of

connection

public
with

buildings

purchase-program of the
estate

,

loans - .by

,

govern-

national

would
be
increased
to
20% bf demand deposits.
„

:

«

lease-

The aggregate limit on real

ment.

;

•'

.

•

„

banks
include

"

:

:

-

..

ReBorts and BIerger Regulation

&,

CO.

E. BOLLOCK

&

HUTCHINSON

McMASTER

^

FREEMAN A COM PAR Y

WM.

CO.,

INC.

& CO.

>

'

-

of

credit union,
belief that this bill,

or

'
,

■:

rff";

V!

$4)650)000

;

(First installment of
?

-f

of

an aggregate

v

•

exceeding $14,160,000)

not

•

.

:

Norfolk and Western

Railway

" needed—first, to

see that we haye
not inadvertently included mate-

;

.

-

Equipment Trust, Series A

pealing with problems of super- rial which it should not contain;
by Federal agencies, we and second, to convince members
have proposed authority to regu- of Congress who do not serve on
late (bank mergers which would our BapklhS^and. Currency Com- .
lpdged in the three banking mittee,that this is important leg- ;
.

3 % % Equipment Trust Certificates

j

{

(Philadelphia Plan)

t.

To

'•»

To be

?■-

LAIDLAW tS:

•<

"

'

'

'

'

maturfe $155,000 semi-annually August 1, 1957 to February 1, 1972, inclusive

j

J'

HAMM1LL & CO.

HAUPT

INCORPORATED

..

vision

IRA

January 14, 1957

much like it which will be '
hammered out after our public
hearings, will prove beneficial to
an
financial institutions supervised by the Federal Government.
it will require much study, however,
for any/one to properly
comprehend a bill more than 250
pages in length and the support /
of all individual bankers will be-

loans

the

-

<SHEARSON,

r

ILLINOIS COMPANY

of

Gne

and to make loans to finance the

construction

10 %

SONS

.

Director

of

&.

THE

authority to Jimit the
limitation

WMPANY

GREGORY

the capital of a

na-

tion^l banks -would be permitted
to.

the

BAXTER A

maxirrium size of loans within the

would be increased from 50^/o, of
capital to 100% of capital arid stirplus.'

give

the Bureau

+4ALSCY, STUART &. CO. INC.

\

.

guaranteed unconditionally as to payment .of principal and dividends by
endorsement by Norfolk and Western Railway Company -

*

\-"\r

.

1

MATURITIES AND YIELDS

Touiided 1842

}■'.
7

*

*

^

(

-

Accrued interest

!

Aug. *957

-

r

Feb!

<

to

be adtkd

)

■

Feb. 1959 and Aug. 1959

3.50 %

"i

3.74)%

•!

;
'J

•

'•

"

•

/ •

*

3.60

Feb. I960- and

Aug. I960

3.75

•

3 *65

Feb. 1961

Feb.

3.80

1972

MEMBERS
J.
Boston Stock Exchange

New York Stbck Exchange

\i. {American Stock. Exchange rI- Midwest Stock Exchange
(jAmerican Bankers Assn. ,- I, New York State Bankers Assn.

Issuance and safe
-*•

•

'

Investment Barikers
!

^

V i

: ;v

Canadian Stock

The

of these Certificates are subject to-authorization by the Interstate. Commerce Commission%
Offering Circular mhy-bef obtained in any State-in which this annohncetnent is circulatedfrom only
of the- undersigned and other dealers as may lawfully offer these"securities in such State.

such

v

f;--

*958

Aug. 1958

to

Association

>•

Exchange

.

.1.

HALSEY, STUART L CO.

.

INC.

1

BAXTER

25

Broad-Street, New

A

York 4, N. Y.
FREEMAN

Boston, MaBs.

•

•-Bloomfield, N. J.

Washington, D. C.




•

•

COMPANY

Montrea1' Que*
Toronto, Ont.

Princeton, N. J.

Oil City, Pa.

•

•

;
^

DICK

COMPANY

&.

A WIERLE-SMITR
GREGORY

_

.

•

.•

R. W, PRESSPRICH

SONS

&.

CO.

IRA -HAUPT

&.

CO.

-

McM ASTER HUTCHINSON A CO.

WM. E. POLLOCK & CO., TNC.

..January. 17. 1.957.^

&

...

....

...

.

,.4r,

;

:

j;

with

&

Salle Street.

and Midwest Stock Exchanges. He South La

:

presentlaw authorizes issuance of amendments to the Federal -De- ^
preferred stock, but "this has been* P^t
Insurance Act stemming ^
construed1 as ah Emergency meas-' ffom the Committee's investiga- •••";
ure
only and has not been used tion of banking here in Chicago.
s
since the* days" of the RFC. We pi general, these provisions would ifjffj

^
Ex¬

(Special to The Financial Chronicle)

N.

slag

?^^rity^and^ uniform application
J

mem-

Stock

,/c '

+

raising needed capital, we have
proposed«that- national banks be
authorized -". to:*» issue ? preferred
stock' and capital debentures. The
in

LOUIS,* Mo.

Yates, Heitner & Woods, 821 Pine

(Special to'The Financial, Chronicle)

~*n£T the payment of interS'j
ii. agencies wpuld
under. Ahe same statutory

.

tracting personnel. To assist banksr

ST.

CLEVELAND, Ohio—Joseph H.

.

.

.

...

With Yatw'- H«tnei*
>
(Special tc The Financial Chronicle)

1

Cosgrove Miller Adds

respon-i.

ei..i

Commercial Bank Building;
bers
the
h^r* of +Ko

George

*? tlr CGmp"4'

who has the final

n

™7m'K

change,

l„f^'-that

troHer^w^

will agree that
Priheinal^ni-oKlpmtr

sure

am

h

tersSe Securities Corporation:

?

I

w'

change.

„.v

iu)n-

nVrp

Unehu?e^

oers 01 the Midwest Stock Ex-

,

§^^

r-TTARt

W

with White ^Company,

On the positive side, the pro- artdmot
anJ?'
pose^.amendments in our bill are -inhnr»t«
^
yp
and then, when satisfied
derigned 'primatily. eithep-to imwhich
Sivht ho
we have it in the best possiprove operations of banks or .to irom a larae one
required, ble form, will make views on tbc
provide " mOfe
effective; super\ ;
:
.bill known to respective repreThe supervision of trust
powers
sentatives
in
vision by the Federal agepeies.
1
The supervision of trust powers sentatives "1 in the House and
V ;
.•
->
of national banks would be trans- Senate.-.
Obtaining Better Bank Capital /ferreti by our bill from the Fed-

11

.

The
12

about

International Oil

Future oi

»

By A. N. LILLEY*

r

'

New York City

Vice-President, The Texas Company,

'

to

temporary ' Middle East oil-flow
U. S. 5% growth in oil consumption per year is

disruption.
contrasted
and total free world 11 million
years ago is compared to 21

Europe's 12% per year,
barrel daily demand *>f five
million barrels daily expected five years from now,
with

can

with U. S.

greatly

;;

-

position, and the need for

accelerated

tractual

-v*:'

•••■

j

large-scale

will grow and encourage
:
capital-flow.':-: '

obligations

...

crisis,

important,
event in the years 1956 and -1957,
we should not let this blind us to.
the tremendous strides that have,
been and are being made in re¬
building the economy of Western
Europe. With the restoration" of
traffic through the Canal and the.
repair of the pipelines proceeding,
on schedule, it should not be nee-,
essary to lower, by any substan¬
tial degree, our generally optimis¬
tic
view/ of • Europe's
economic
future.
Certainly,' if the Middle
East is to reach its full share of
economic growth in the world, it
will

2957

A

weeks

few

by establishing the Middle East
Emergency Committee to coordi-

your

to talk about

nate~oil

oil business.

international

the

when

ago/
me

shipments

*

Europe.

accepted his kind invitation with
some misgiving. It seemed to me
that events had been moving so

to

Western
,

.

* Rearrangements
of world oil
movements are now being worked

the seizure of the 0ut, aimed particularly, at meetCanal that the timing for ing Europe's requirements within
a speech was not too good.
the limitation of available tanksince

rapidly
Suez

such

measure

sion

.

its

of

rope.
V

•

1

•

'

;

•

*

,

■<

<jr

.

inating

This

most

P,

.

flow
sharp economic blow

represents a
to both the Middle East and to Eu¬

at

contains

East

Middle

of all known

Growing?

•

.*

the
the

Over

in

mand

to

States.' has

United

,

small

another way, this

state this

uThilhnnTaV-

VeltZ -^orefhan
\°VrrSJlS refnt
Pr°"'
duction

ref^ of

oil

a

.

petroleum econonjv of the
free world, including .the
States, will depend more
and more on the Middle East m
the future. Proved reserves in the
United
States are now only 12
times what we will produce this
The

.

Prior

the

to

emergency,

oil

.

the Middle East coun-

revenues to

tries were running at about $1 billions

transit fees, local wages,

in

ments.

United

countries, oil revenues are almost
their
only significant economic
resource. The present curtailment

reserves
will
continue to be found in the U. S.;

Additional

10

another

in

but

-about

meet

have

day

of

imported

be

to

to

a

A sub¬
will

growing U. S. needs.

stantial part of these imports
have

to

Middle

the

from

come

East.
of

.

.

.

know the present
Prior to theseizure of

you

situation.

Suez

the

.

jm

,

All

Canal,

Middle

the

East

Jields were producing almost four
barrels

million

a

million barrels

means a drastic cut
in the oil revenues of the Middle

About 1*,&

day.

were

being moved

of

oil

moving

Mediterranean

went

the

West

Eu-

to

rope.

As you can see, blockage of the

Canal

and

pipelines

sabotage
going

have resulted in
tion

of

the

the

through
a

flow

Middle East.

of

Iraq

Syria

major interrupof

oil

from

the

Lack of tankers has

for

industry

oil

around

Africa to Europe.
Need

supplied

with

her

companies

imme-.

diately stepped in and began this

job;

and,

have all

has

in

seen

further

"An

address

recent
how

al¬

no

oil

severe

pro¬

and

be

deal of this

self-generated

part

of

the

This

announcement

NEW

ISSUE

are

However,

partic¬

having been sold, this announcement

appears

as

art-offer to sell nor a solicitation of an offer
The offer is made
onl)\ by the Prospectus.

y

"/V

-

;

..

.V.

•

:

*

:

y

buy

to

of these Shares.

any

-

-

.

*'

•

of record only.

matter

a

is neither

;V

r

•-

,

^

"

-

Spar-Mica Corporation Ltd.

Restriction of pleas-

resulting unemThere will be higher
costs
for
many
materials,
and
danger of further inflation.

tunately,
payment.

250,000 Shares
5% Convertible Preferred Stock

.

some

(Cumulative from January 1, 1959)
(^5 Par Value)

Convertible into 5 shares

con-

a

of Common Stock (subject to adjustment)

manvEuro"

cgou£tries. Britain

pean

and

France, for example, will have to
pay for a lot of oil with dollars.
Also
lose

Britain,
hard

in

particular,

currency

Common Stock

be-

(#1 Par Value)

she will have less oil to sell

cause

to other countries.

European

the

by

longer

haul

may

OFFERED ONLY IN UNITS
CONSISTING OF:

around

Some East of Suez

*

ex-

of dry cargoes also will be

ports

hurt

500,000 Shares

will

earnings

1

share of

mar-

2

be lost and will be dif-

5% Convertible Preferred Stock.
shares of Common Stock.

our

weeks,

you

government

organized

this

effort

Europe, therefore, is feel¬

ing the economic pinch. For Great
Britain,

we

estimate

that

all

account

alone,

something

per

Unit

like

is

a

substantial

sum

when

Copies
se

you

securities

^

from

are-eligible for-sale.

consider that Britain's regular re¬
serves

figure recently dropped be¬

low $2 billion.

However, the short

term pressure on

ditional resources made available
by

Hamlin 8c Lunt

sterling has been

N^ron^ncr^^tkConfe^n^,*ach>ic'agof*jan!•
14,
'



$6

this is likely to cost, on her trade

greatly relieved by the large ad-

.

Price

of

$ V2 billion of hard currency. This

international

Monetary

January 16, 1957

money

in

the

tainly be required.:

world.

ernments and

areas

All of theseXTnits

as

past, but a substantial amount of
outside financing will almost cer¬

there will be a
supplies of around

by Mr. Lilley before the

lasr.

Soviet

will

•u

industrial production, and, unfor-

All of

basic oil requirements from other

Private

The

countries.

every

Many U. S. companies

bloc and the Middle East produc¬

ing

in

on

Soviet

between; the

here

both

demand

abroad. A great

:

it-, is vital that gov¬
peoples everywhere
recognize that the granting of eonipating in crude oil exploration cessions by a sovereign govern¬
or
production in
the
Arabian ment is In'itself oii&'of the great-

such basis of1 mutual in¬

exists

during the next 16 years, but dur¬
ing the next five years and that
nearly half of it will be invested

do,

oil

15% to 20%.

Now

make emergency arrangements to

areas.

terest

tremendous

.billion
compa¬

rable amount will be required, not

ficult to regain.

The need, therefore, has been to

Europe

spective

this

and; nearly
$20
We estimate* a

;

abroad.

abroad, the search for oil is going

ure driving will not be enough.
There will also be slowdowns in

kets

keep

there is

winter of

a

can

in

deficit

alent

of

no

meet

».

S.

U.

daily, and

,

1955,"the free world's oil industry,
including American and foreign
firms, has invested an estimated
$60 billion — $40 billion in the

Despite everything the

rationing.

Africa.

The

Europe,

ternative to

prevented the movement of equivquantities

that

To

.

'

During the .last 10 years. 1946-

Europe's Position
As

Mos't

through

v -

important fact

production

Finally, there will be

Mediterranean.

the

to

this

very

.

XVh/rfiu!!6
lines

a

States.

East countries.

unless
discovered,

million barrels

3

will

oil

of

p0r

years,

sizable new fields are

f

fully half of it will be outside the
United

world

and distribution networks.
v

;

mate 21 million barrels

the

develop oil,' to provide
pipelines land tankers, to build
refineries, -to finance - marketing

approximately 12% per year. Five
years ago,, total: free world de¬
mand was about 11 million bar¬

*

invested, around

be

-

and
other disbursea good many of these

purchases,

entire

year.

It is

potential

to find and

growing at the rate of about
5% per year. But in Europe in
the same period, growth has been

normally finds its market in Eu¬
rope.

Capital Needs

tremendous

reserves in the growth means a number of things.
vitally needed:. £ Particularly important is the huge
amount of money that will have
past five years,, de¬

been

depends
for its livelihood primarily on oil;
and
of all oil produced in the
Middle East, around three-fifths

This

fabulous

These

rope.

in the free world. To

oil reserves

brie!

in May, but even this
interruption of normal oil

open

ably familiar.
The

.

Middle

Middle East are

The Middle East, in turn,

focuses

y

least three-quarters

•

which

.

.

still

look

longer

with which

.

position

Pictures

Middle East. Too, Depends 011 y

Europe

have to face the fact of the dom¬

;.C • rels daily of which one-third was
about it, ers. Despite our best effort, the
Now, I would like to dwell a outside the United States.
Just
however
I concluded — I hope immediate effect of this Middle
bit on this interdependence of tho
prior to* the emergency, total Re¬
rightly—that this audience would East upset is serious, both for the
Middle
East
and
Europe.
The mand had increased to nearly 16
be
primarily concerned with a Middle
East and for Europe,
equation goes like this: on. the one million barrels daily of which
long term appraisal-r-a look be- Whether it will do lasting damage
hand, Europe - normally - depends over 40% was outside this coun¬
yond the morning's headlines to depends on how soon the CanaF
on the Middle East for about fourtry. Five years hence, we expect
the prospects of international oil can
be reopened and the Iraq
over the years ahead.
.pipelines repaired. The latest re- fifths of all the oil she imports. total world demand to approxi-4-

further;

thinking

In

explorations
promise; but as
you
simply

stand /today,

.

.

t"

..

things

some

Where Is Demand

principal market. .Eu¬

•

.

these

conspicuous anti-Western; world demand continuing to in¬
in that -/area, ■ there is a crease, there is 110 question that
great deal of less conspicuous, but- Middle East production will con¬
i'
no
less real, enthusiasm and ad¬ tinue its spectacular rise.
miration for this country.

is

feeling

dependent
jm ya large
on the continued expand

be

.

of

,

show considerable

five years, Middle East produc¬
panies have access^ to more thanone-half of these reserves. And— tion has doubled,-reaching nearly
million
barrels
I might say—that although there; 4
daily. ' With

.

will

Some

,

in

more

reserves
hold; in the free
area, I believe it is indeed East
fortunate
that
American, com-, world oil picture. Over the past

.

chairman asked

involved

now

exploration in
than 30 foreign nations. -

oil,,

about4 the U. S.

are
or

Gulf

recorded as an

be

a

industry's interests in the Middle;
East.
Well, the hard fact is that
oil is where you find it—-and with
three-fourths of the free world's
known
reserves
in the Persian

"

.

operators

producing

Canal seizure,
great- deal hi'

Suez

been

talk

gloomy

be expected
J

the

has

there

the situation

once

Looking Beyond Suez

capital investments around the world. ^ Expresses
confidence that a "durable and stable" relationship between
West and Middle East will emerge, and that respect for con¬

Middle East's dominant oil

-

back

wash

Although the Suez Canal

demand-percentage of the total declining,: respectively, from
two-thirds to one-half. Mr.. Lilley advises facing the fact of

-.

i

.Thursday, January 17>

Mexico, and other countries
All
in all, more than 100
American

■'y

.y

case.

Since

-

has been,

is restored.

ing beyond the

1

drains.

recent drain on,reserves

speculative and

the.

susceptible to
Much of The

ling is particularly

business is voiced

!

.

„

speculative

Optimism about the long term future of the international oil
by Texaco's foreign operations head in look¬

:

,

,.

Peninsula,",the African Continent
Sicily/ ^Pakistan,* Canada, Bolivia'
Paraguay, Ecuador,; Peru, Cuba'

Export-Import Bank-—, currently are mor.e; than self-suf-.
ficient in oil resources and eyeii
$1,800,000,000..
,
have some for export, and it ap-„
We have to remember, too, thatpears that this will continue to be
as an international currency, ster-*
and

Fund

*

Chronicle

Commercial and Financial

(208)

•

AMen &

Company

Number 5604

185.

Volume

Commercial

,

.

Financial.The
Chronicle

and

exercises
of
sovereignty, Government -policy
toward- the
whether such a contract be with ' Middle J_,ast, indicating a new
another^ \ government,-: a
private awareness of the vital importance
est

/

1

which

the

individual.

fundamental

The

/

basis

of, that

*

■..

for

all

trade is credit and
trust based on the recognition of

international

sanctity and stability of

the

entered

freely

tracts

Creating

States

United

the

in

thus

ence,

Second, the West
Eastern oil

we

be

must

in

at

stabilizing influ¬
permitting continued

Confidence

objective for

an

as

aimed

■*

offered,

Ahead

dle East must have

I

have

mar-

faith

human nature to believe two

since

Stanton

areas-

in

tion has

in

a

get

Job

a

Secretary

Lincoln's

John

as

Foster

which are so vitally
dependent,/,
indepen-. one on the other, will work to -wurKtevi; tb uc-'
come Secre¬
dence must recognize that sover¬
achieve solutions compatible with
tary of State.
eignty carries with it not only their mutual interests.

privileges, but
ities.
In their

also

responsibil¬
own
self-interest,
nations
must / do

independent

everything possible to

create

an

atmosphere of stability for busi¬
ness
enterprises which will help

their /natural

develop.

*

to

omies in

their

improve

and

sources

general.

I

re¬
econ¬

-

.We have all been encouraged to

and

1

more

see

the

around

countries

more

world

embracing, the

proposition that they must adopt
responsible policies toward.,for¬
eign capital in order to attract it.
I

believe

moving into

are

we

international

which

in

era

an

flows

of

private capital will be much
more important
than in the past.
I

this

think

American

is

time

a

businessmen,

when

and

our

government;, foreign business, and

vate

their

redouble

conditions

achieve

the

around

governments
should

capital

can

world,

efforts
which

in

In

the

appraising

have

realize

to

Third,-and

is

it

Middle

feeling

the

of

area

and

the

West

supply it.

I

essential

tide
of

peoples

stand

on

their

their

own

is

in

nationalism

of

for

their affairs about

established

is

feet

their

well

A

ported to have

said

our

and

to

exploration

assure

ity.

stakes of

the

the

West,

and

stable

telligence.

rather

than

Foster

active

have

in

of

the

Middle

tion

at

the

annual

one

of

firms

oil

East,

I

do

a

sense

are

sidered

effort

every

avoiding

—

contribution

studiously

while

—

to

interference of

make

to

maximum

a

and

welfare

the

progress of the countries in which
we

production

in

Middle

the

~

fanciful

fact

that

is

structive
work

In

is

and

several

In

Arabia,

the

made

scourge

of

hour about

oil,

picture
I

and

—

Grounds
-

my

he-

his

his

more

the

come

wish

a

Dulles,

that

his

This

is

he

hasn't

done.

name.

must be

And

Mr.

of

many

We face

Shu-' yet to
for

the

recent

emergence

John

Leighton

manager of

of

ment

Optimism

a

has

are

cover

zel of Hornblower & Weeks, Treas¬

and F. Lester Smith of Jan-'

urer;

solution for the Mid¬

It is

difficult for

me

ag

the dire picture

only/.a
kicked
oil

few years

away

found

ago

that

its
it

not the techni-

had

cal skill to develop the

instance

first

and

it in the second.
to

-accept

the

become

It

no

oil in tlm
for

market

was

very

face-saving

The

following

members

the

of

elected

to

to.serve
M.

Board

PORTLAND,

•

glad

device

Ore: —Robert

three

for

Dated flu Hilary 1, 10*17

of Walston & Co.,
west

Inc., 901 South¬
Washington Street.
/ *

Hettinger Director

Lester
Trust

Smith

Foster, F.
Henry Ecrovd,

Albert' J. Hettinger, Jr., partner
in Lazard Freres & Co. since 1944,
has been elected
Board

of

a

member of the

Directors of Underwood

Corporation,

business

machines

manufacturer.

Railway Company

and

of

Officer

Investment
Trust

'

Company

Interest

:

Due January 1, 1082
Payable January 1 and -July 1 in. Xew York City

of
The issue of these Debentures is subject to
of Western

Two With

\

the

Philadelphia.

approval by the stockholders

Maryland Railway Company and to authorization

by the Interstate Commerce Commission.

Reynolds

(Special to The Financial Chronicle!

CHARLOTTE, N. C.—Philip D.
Small has become connected with

Price 100% and Accrued Interest

Reynolds & Co., 221 South ChurchStreet.
He
was
formerly with
Bache &

Co.

With J. N. Russell Co.

Copies of the Offering Circular
undersigned

(Special to The Financial Chronicle)

CLEVELAND,
H.

Ohio

—

with

as may

are

obtainable fro manly such, of the

legally offer these Debentures in compliance

the securities tans of the

respective States.

Richard

Quigley is with J. N. Russell &

Build¬

Co., Inc., Union Commerce
ing,

MORGAN STANLEY &

CO.

the New York
Midwest Stock Exchanges.
members

of

ALEX. BROWN & SONS

half

Julius W. Noyes

very

passed away
14 at the age of 69.
A for¬
member, of the New York

Julius
Jan.

W.

Noyes

in

J.

W.

partner

Noyes & Co. until his
from
the
brokerage

retirement

--V

IIARRIMAN RIPLEY & CO.

KIDDER, PEABODY & CO.

Incorporated

DICK & MERLE-SMITH
January 17, Ul">7.

v

"

Francis

years:

Brooke. Jr., John D.

L.

Wilson has been added to the staff

Twenty-five Year 5 %% Debentures

were

Directors

:

Waist on Adds

$16,712,700

Western Maryland

•

associated

The o/fer of these Debentures is made only by means of the

'/"/

tary.

•

(Specfal to The Financial Chronicle)

that Iran

heels and took its
from Britain.' Iran soon

up

has

Dulles, Battles & Co., Secre¬

ney,

Inm.

formerly \yith Donald C. Sloan &
Co,

Affairs Com¬

of the Middle
;East which Dulles paints. It was
see

Offering Circular.

Co.,

&

-

with Foster & Marshall, U. S. Na¬
tional
Bank
Building.
He was

elected

Sachs

in

PORTLAND, Ore.—Kenneth C
Kraushaar

Offering Circular, which should be read prior to any purchase of these Debentures.

the Municipal Depart¬

,

(Special to The Financial Chronicle)

>

itn

'

always "musts."

it is with members of Congress, to

fccl-

when he appears beSenate-counterpart. Un¬

This is not

they

,

provoked

Co.,r

offi¬

Britain

distinction

long
who

Vice-President: Albert A. R. Wen-

- point
to
stronger. U. S, business-in; 1-935.




thinnest
This

Mclllvaine,

H.

Goldman,

as

do when

term

Other

Foster

D.

cers

of inter¬
I've
I am

three

events

of

Achcson

solutions.

House, Foreign

his present

come

the

to

particularly vexatious at this time.

world calamity, he told

a

dle East.

derlying it, of course, is that the
Democrats who took such a public

expired.

mer

for

arises.

mittee, if Congress doesn't accept

hearing

same

to

the-"Middle Eastern

Joins Foster & Marshall
Dean

was

His solutions

on

Eisenhower

coming to the.

s

The

fund

a

Together with the general feeling
of Congress towards him and for¬
eign
problems,
this is proving

Therefore, he has com*

his repeated

However,

tired

aid.

wants

the newspapermen

to
be
annoying and irritating.
Congress being fed up with tin
problem is fed up with Dulles, and

impression is that Congress is
getting

be

a

the

use

grave.

as

problem.

than

criticism

no

several /

past master in the Eng¬
language. He knows how to ;

lish

more

has become before Con¬
the svmbol of this annoying

gress

resignation

forthcoming before'

economic

pretty, much

-He is

before,

coming to

am

more

ex¬

his downfall.

of

decidedly

"global" leaders, "v '

were

budget, it is to be in¬
by some $3 billion. Why?
Oh, the foreign situation has be¬

part for what he has done and

simply

o n

guess

for

and

a

reasons.

First,

be

what

Co.,

whose

Stock Exchange, he was a

the

been

'

creased

of' tions Committee and the worst is

Brooke &

Well,

optimistic.

optimistic
good

the

im¬

of reducing the

THE FIRST BOSTON CORPORATION

I've been talking here for

national

belief

my

and

Jr., partner of

and

trachoma.

sounded

has

reluctantly I

months.

cis M. Brooke,

oil

past:

practically a thing of the
and murh progress has been
in
out

Dulles

to thrive upon

that

and France used

military

It

substantial.

will

succeeds Fran¬

malaria

Is

wiping

for

grief.

'

pert-&

largely earmarked
development pro¬

Saudi

but

problem

;

won't

this

is

words.

foreign

is

predicted

bv them.

countries,

the

of

are

economic

grams.

the

but

deal of con¬
forward-looking

being financed

revenues

for

stories,

great

a

billion

$6

This year, instead

.;>/• /,:•••"
-evening at the ing.
Barclay HotelL- ..J,As this is being written, Dulles
is being given a merciless goingMr.
Foster,
who
is
Vice- over by the House Foreign Rela¬
Studley,

viewpoint of a few years past,
poured into national treas¬

rather

budget,

another

of

join in the chorus that

been

the

Associa¬

ociati

were

:

have

uries., The disposition of some of
these funds has encouraged some

has

But

President

East has skyrocketed since World
War II. Unheard-of sums, from
the

Secretary

.

...\

Provident

have worked.

Oil

that

which

anything

meeting
ass

made

have

We

political

kind

any

ourselves

conducted

nor

"exploiters."

as

of

nothing

seems

I hate to

held Thursday

v

office

has been predicting

election of the

could

of pride in-the role
playing. In our overseas
operations, we have neither con¬
we

stupidity,

Securities

after

However, apparently every time
get into position for a tax cut.

so

been

he

turmoil

elected President of the

was

Philadelphia

Carlisle Bargeron

perience.

Elects Officers

were:

American

billion

Foster Dulles has been

been

cause

so

are

they

aid*
I

pass around to

than last year.

To any other man it would

hasn't

PHILADELPHIA. Pa.—John D.

interests, I want
this area has

representative

a

of

help but prevail.

I

several

have

confident that in¬

am

for which

war

that the matter

say and
he can't
well say just how he intends

use

stiK* u&ndits

arc

10 years

ago

truth

And, instead of a tax re¬
duction, we arc faced with a $72

to have

the

State.

It

share of peoples and gov¬
ernments
with
intelligence and
As

and

than

•

It would be.

to

rolling in the greatest
we have ever
known

more

economic

"■

very

session.

,

be

their

to them

up

as

posed.

now

ago,

after

durable

a

this

-

East

to

prove
market for

now

put

Dulles

we

long

Phila. Sees. Assn.

its full

the

East

building

relationship,

great that I
cannot

Middle

in

to

integrity.

the

as

ever

at

but Wartime excise, taxes
in effect

would
a

weeks

we arc

.prosperity

ssibility,

been

on

capacity for intelligence,, but
on our
capacity for stupid¬
He's probably right. But the

that

you

it.

Presidential

p o

.

none

which

in

a

recently that

the Creator placed some limits

producing

has

company

Here

reduction

.

,

.,

other

Middle

uncertain,

people

country.. The

been

for

fairly good reason to expect

a

tax

a

Ever since

seems

coun¬

as

had

tlie

the

.

{

the

Congress will unquestionably do.
But the outcome of the
proposal

Con¬

whole, is fed up with
problems and • appar¬

a

of

ment

ac¬

complished

continued

this,

ently Congress reflects the senti¬

Court.

never

economic advancement.
which
Western
statesman
is
re¬

during this decade of
tumultuous change. On the basis
of my own experience with the
East' countries

He

as

European

the Su¬

on

accompanying

-

gress,

own

By and large.

as

to

in practice, how vital it is to

see,

be

and

get

preme;

the various nations

as

be expected

own

But

,

and

by the
President, Congress is almost com¬
pelled to give him the authority
to
intervene
with
arms
whjjfcii

which Dulles has conducted them.

to

mentioned

tries, particularly the major pro¬
ducing countries,
have handled

Middle

Dulles

am¬

Was

Russia

Manifestly,

beating in their conduct of for¬
eign affairs, think they have a
crackerjack issue in the way ii

War

large scale flow of Western capi¬ T o m
; D e w e y
tal—respect for contractual obli-\
began being
gations—will become more firmly *

the

—

everywhere

own

-

confident that the '

am

'

masters.

bition

capital;

position

a

condition

area

world

I feel that most of the Arab

my

need

areas

intensely the world¬

more

wide
drive

the

East,

that this

living through a whirlwind of
Economic
development
and
growing trade with other
areas are disrupting old patterns
No

broadly,

Middle East and others of the less

is"

life.

more

industrialized

change.

of

Stanton's

pri¬

where

go

to

most, needed.

we

so

13*

the West, it might be a good
idea to let them try it a while.

hard to

of

Administra¬

worked

man

achieved

have

V

as

has
Not

of

attractive

By CARLISLE BARGERON

Middle

Western

enough

countries

oil

of the Neivs

•-

J.

,

Arabia

as

growth.
needs

j

Saudi

think

sympathy. However, those nations

which

oil

-

supplies; and the Mid¬

kets.

if

oil

•

safeguarding the right's and free¬
doms of the peoples of the
Middle
East should be a
economic

nation is one with which

any

policy

into.

Investment

Nationalism

con¬

;

A

area.

-

United ,States, finally

,

company, or an

-1 •

(2<*9)

R. W. PRESSPRICH & CO.

;

.

The

Commercial and-Financial £k¥aniiele\

,,

Thursdays-January

17,'1957

m (210), z

K— ?*'

WILLIAMS

By HARVEY

opin-

r

will make the

which

encdura«e-

.

uron the Govern- . forecast is not as optiirjistic.fBrrt- manrhouvs in research, construe-r:
for the-United ..Kingdom, „the the free world. The. utilization 0£
States",Our
provide" world-'ain faces not only a temporary tion reproduction for military

Un ted

the

to

in power and energy sicunty botn at home and,abroad «?■
but-also the added dram would seem^more likely to.:in-j
obligation with a constructive for- ,pn its dollar resources which- the crease than diminish in, 1937.
ei°n
oolicv or leave a.vactfum British Government plans to off-v
^
< ir
:K S of wbrld affairs -set b^its recently arranged dollar / -developments v
which "will be filled by others-to credits. ^ Again it is- anticipated
Finally-, the world appears to bei
our
disadvantage
V*. "
^that a poorer first half will be in the early stages of greatvac- /
•"
'.
"ihtrd Vi'oild "above
1957 *ls£followed by an improving second celeration
of "business activity
cZeauen^sl-its-half hftther nejfe year and that the through new, scientific, develop- "
hein™ blocked- As coal hits become full yearV-business
activity in immts, i inventions. - and techno?e«" and less an eTOhomfc-^urCeT Great- Britain may range from ,()gjc!tl .progress. London, -.Paris, v
;
"of energy in Europe and: Britain, 1.0% b°low the 1956 level to equal- Alndri-t. Caracas, Mexico City and g"
during recent years, the use. of oil;, ity with it.
, San;
Francisco, will beg brought i
4- as- 'fuel-'m-industry and ' 4or *tfjevf'Theseexpectationsi.for-WesternyW1thm five- to six hours of New
>' generation of power has;increased/ Europe and the United Kingdom York within the next three to four %
too/has increased the- use of vare subjgcttq modification-as re- years by commercial jet aircraft.;
petroleum
derivatives with/the opening of the ouez Canal devel- it has become'possible to tele- <
-

has

leadership

wide

■""

Corporation

President, Pbilco lnternatfonal

half-oi.-I957. munisBa itf the cyes'of.world

w..ole new" ion. They haVe pointed also to the
amongst/eat as good aS;1956..H ,ppt 3;Wtt? ^necessity"" ®f maHitainijtg -.a; high V
upn»mgsauioit,si.y./ -,-r.* /
level of-military preparednessilr '

Look'ng at tie MajorInfluences
men?
In the Wcild Business Oatlo< kM^rharfenends
refponsibihty
Of

m-ovementin the'last

the

U„„

_

.

'L^f'fhat
^
"Minister^ Sgteedtha
--,,-ment.ot \loient
'

•

greater^^ WeThall

never

reduction

been

either meef thai supply;

.

An optimistic international business outlook for
from Philco International President's evaluation

»*/
1

1957 results
of negative

-

I

and high interest rates, Eastern Euro¬
pean satellites unrest, and economic consequences following
Suez crisis,, and constructive factors," as -rising population and

j

consumer

!

and myriad

factors,

|

money

-

*

not dependent on the Suez Canal ; and American
imports and investments to exceed 1956.

areas

,

.

1956

year

exports

can

exports,

,

; c,

:

be dismissed

more

come

of

and

dieSelization

as

made

ness

air transport.

enterprises to borrow abroad
as at home. This conoitioh,

will

goods

show

of

1955

over

and

a

$17

billion.
i

•

m-

ports into the
United States
of

13%

1955

value

of

an¬

-

;

to:..'--maintain

operating

These

overseas.

tioned

later.

are

Nevertheless

high

iriterest rates and

the

use

pro---of 1957/ The longer, full operation

dependent

be the

poles,

upon

crossarms '

apd miles,of wire or cable.. Voice
aPd signals con be'^transmitted '•«.

Kmg'-

upm and

of power" and en-

needs
■

;

billion. Of

,11

proximately $0.9 billion will

rep¬

resent profits of American-owned

foreign enterprises which will have
been reinvested abroad.

The

,

Perh,aps it is well that Suez yas jKfn-dd^^a'ni^wLterp^Furop"

second

munist
-

bal-

negative condition

satellite

Europe. For

zone

of

represent the net amount

cow

J

t

energy

temnorarv 50%

available.

but

not

the

generation the Com-

a

for

be

situation

This

is

-•

cation

j.

Basic Constructive Forces

f

i

and

or

in

to

new

improved prod-

or

.

useful to mankind,^ In these

ucts

y

serious
serious

Amongst the powerful construe- and other areas/science is break-.
How ,different^
five influences which will tend to ing through barriers whrch seemed .
nobbeerl,
hob? foreign- business'
activity at^n^penetrable' pnly/20: or 30 years a,
Europe-- was
de-.

crippling.

blocked

■

had

until

Suez

wao

nnrirnrrgv

^ieh

p

'pending for"one-half"of

itripower
rrnnirrmrntW An
nil

wid^
of

levpj in

agort.The horizons of scientific de-v
velbpment and practicali.appiica-/
Lion of the results are being-pushed ,

1957 j«s the World-

r'ocjre for

.hoffor

a

o+oPri-'•*->

living;! Never before

has

this

,

business operations in 1957 is op-.
msiness
limistic
imistic.
It
is clouded

applications,

active, isotopes; with then- appli-

operating in 1957.
t

■

and

demand been as evident as
during
ruption of supply noto will hasten
the current-decade/In the years
longer. On the other hand, we; the
development of neyW oib re.
mav be witnessing the beginning sources
iw- areas not dependent on -!inc!e the war it has been a rising
of the breakdown of another die- cUP7 or Middle East ninelines-for desire not only in well developed

back at ah incredible pace which;

•

international

electronics

in

their myrl»d

donor*-for

rub

SlWluni »dn«-^-.9nd.,fear maw hold the USSR still ?™m
the satellites
within thg oibit of

abioadI made by commercial

banks and other lending agencies,
outlook

°ne can enlarSe at length upon

developments

en-"n?n<titWe^of
ergy!equrie^erd^Under such.ei!- Western Hemisphe-e" oil are^ the petrochemicals,energy apd radiopharmaceuticals,
of .nuclear;
,

Eastern

empire centering on Moshas been expanding.
Force

to*nfi-rhore

power

is

munist

Middle/Eastern, oti

upon

back incut5ack in total
oil supply represents .only
a 1Q%

the continuing unrest in the Com-

A

'

—

to

[nUuence^iifl&T

or tnc
ofdhe negative influences in

The

The increasing

the
op
jnci'easing power "aha -energy vunroM: ' in/the -Eastern E
Eastern European ' ()Ur business activities with other
of/these countries.
satellites, ^thp temporary shortage

>

capital market in the major; —
countries of Europe, Latin
ica, in
in
ica, m Australia and in the United

Williams

arvey

the year ma.y exceed $3

a

larger

-ent

this total, $1 billion will represent
new dollar investment abroad.
Ap¬

will

center/

men--;

the

ticipated. For¬
eign invest¬
ment during

ance

any

It .could be ex-J the eastern end of the Mediterra-nEastern oil is replaced with West-;,;
ti
The- acceieration in-trans- ;
pected to slow down the, rate of * neon have been becoming,--month •
; Hemisphere
oil... ;
portation
and
communication '
business, activity and expansion. 5v month, more^ importarit/as the^^ ^ Summarizing, tight money and
ty
expansion.,
money
by month,. more" important as the" '/
£,hi h wev are witnessing will be *
But there are major counter inieh
raain artery supplying th§ fuel for ihigh inlcn-st- l'ales, tlie continuing,
interest- rates,; the
-.accumpanied by an acceleration-m.

ment'-

$13

is

well

fluences

a

billion

Present ^expectations are on phone*:from practically

ops.-

ductivity of the United Kingdom is delved/the-greater^ill
ancj Western Europe is • geared/to/difficulties/
ojjlhe UriitCd

Ihigh .production and full employ-

over

and

a'ys -'and

.

A

i

n

w

itiaJly. world-wide.

value of

gain

i 1

W p d-exil Europe-from the throhgh/ the- air from tower to
i'bigh money rates and shortage in ' ergy. • It, has beenobviods tti^t-the-«bbrto«ej"of oil ana fmm ^ 7y-T~ tower across great distances at revthe supply of capital, is .substan- '-guezj Canal and the:
pipelines to creasqd dram of dollars as Middle duced capital cost and erection

an

increase

21%

as

more

r a

.

difficult, as

more

well

of

'

greater use of gasoline—or diesel^ihe assumption that the Canal will 0f population in the free world to :
p0Wered personal and-commercial-be cleared without delaY and may any other.: With microwave, intransport, farm mechanizatiomand' bdIn|fumoperation byThe- middle ternal communication is no longer

expensive, for busi-

American-

■

.

-

.important countries including .the
with a short phrase—it has been .♦United'-States. - With the mcreasa
record-breaker. When the final,/ing .demand for money, interest
results are in, it is anticipated that rates have hardened. It has be-,
;The

.

.

demand pressures, urbanization and industrialization,
scieirtific-technologfcal cfevetopments. Mr. Williams
contemplates increased 40f.^ -S.'interest in Latin America j;
U. K, and Western European search for oil in soft currency;

*

■

tight

as

must act

a; positive/construeW

as

tive stimulant to business through- :

out the world.
,
" •:
three :tatorship. Should the flame of re- delivery.
V.',countries- suchi as - the/United •' •
" \ \
;
major circumstances.
It 'is sup- v0^f h'om Russian tyranny spread
Statesy? Canada,- G r eat Britain,
.Q^ier Expectations.
ported by powerful, constructive. !00 far to° fast, a major war could. Western Europe's 1957
Germany and France, but also in
There are' large areas of the
Prospects
trends
It is a year during which ensue.. tp the change to greater
If
The British anH TTreneH-ev«e/T
the much less dgvelop^d,countries world where /the/ difficulties of
important new trains of events independence and freedom comes
tion into Fevnt anH the hinetir.A
arid Primifiv° areas.,4This pooular Suez will not affect business1 promore slowly, by political
may commence.
negotia¬ ir/L"!0,. W/,nlmeu? °„Ck!"g desir, is encouraging-^if not.de, grams ,in the coming year... The
of the Suez Canal will have far-

*;

.

by

v

.

•

.

:

j—~-i~

tion rather than by force of
arms,

Negative

a

Forces

As

production and employment
have
increased
during the last

major

though

war

decade

Hungary,
of major

c

realization

in the more industrialized
ountries around the globe, annual
capital expenditures have grown
to a point where
they are out-

stripping

the

ratel

of

savings

in

Treaty

may

local

be

avoided

fighting, such

may
war

of

the

powers

at

in

be ahead. The risk
is lessened by the
North

Atlantic

of the dangers in¬

herent in this situation. That
evident

al-

as

the

NATO

was

Council

reaching
result*;

economic
However

American
for

ca

the

ut

and
the

,

.poods and services

LecutivL relooLlbfe 'thr°"ghout
executives responsible the
-

manufacturing companies are not
pessimistic. Their estimates of 1957

goods
npss

business

activity in Western Eu¬
anticipate a sRwhtlv, .lo"'^r
first half year than 1956 withlm-

announcement

proximity of Western Europe and
large scale, the^,United Kingdom to the uncer- >

with

of

causes

abroad

the

o;-e of itainties associated with the Rus-v
wii
ther huffe/sian satellites in Eastern Europe-

for

capital

increasinff

of money and

continue for years

.

interest

^.

is neither

^ The search for oil in soft cur-.
countries which can supply
United Kingdom and Western

and

rency

of pomilation

areas.-

The

Canal
this

ex-

pected levels of population in 1975

NEW ISSUE

are

being

advances

revised
in

deereasing

100,000 Shares

upward.

medical

infant

of

brings

oil

in

of the Suez

use

Brazil

If

be, accelerated.

should

production
merely suf-

the

about

quantities

needs in

ficient to meet domestic

The

science

stimulating/a

-

greater interest in Latin America,

Another basic constructive trend Europe without

is the ranid
growth
in many important

an
offer to sell, nor a solicitation of an offer to buy any of this Stock,
The offering is made only
by the Prospectus.

in

vestments ' while

fulfillment.

on

to/diminish American •
making European in--

tend

may

tight-

higher interest

rates before-mentioned. It i5? a
/?™and.^hich{ having been kindied, will

t

insist

This

on a

the world-' It's

principal
expenditures

European1 operations. of

>

«

I

manding—increased production of

.political

vL

rope

f

and

Argentina, the ecoand nomic welfare of those nations can
are

mortality

increasing longevity.; T'^e result- change drastically and their curant

effect

upon

in

population

the United

in-

•r

COMMON STOCK

a

discoveries

of

such

the

as

Africa,

cil

in

areas,

new

Sahara

Western

or

undeveloped portions

new

supply, communication,
transport,

of the globe will Open

food,-housing,

celerated

consumer

*vY0^Pr--■ P^QPi^ites

($1 Par Wilue)

search lead to major

Should such

startling when measured in
terins of the needs of
future populations for electrical
power, water

ECONOMICS LABORATORY,

"hard."

rencies could well become

States,

is

living.

The

growth,'

durables

up for-acdevelopment

economic

of, beber within the next-three
during the years. * / V* '
' v'

to
.

seven

.

.

%

-

^ busin^ss

PRICE

" Unless 1957 brings.a crisis sim"•'-•
'terviPPc i
SUpplyin§ v!opds and Hiar to, that'which the Korean War .
/-• •: • where
thp 3
^
.produced-iri 1950,;it does n^t.seejn ;
igrowth /R°bb^ation unduly pptimistic to expect AmerT^
Y" that -nf thp'
f
U^e i^n exports to exceed the levels ! v-*Seem^ cnppfapm n1^
'
19agj -vXmcriran; imports ^toc
seem
spectacular when we - will 0'f

$15PER SHARE

.

u

backward fjem

Copies oi l!ie Prospectus may be obtains,! from such
of-the several Underwriters,
including tiie undersigned, as are registered dealers in securities in
this State.

s.
*

BUTTON & CO.

■-

arcomnanies

ri^*za!10n- It

mana

fqr

.

a

.

United

Etates

from outside

'lia,

grea-test

are-passed

purchasing

body-blow-to

•

-

Com--

which *\VH1
.r-

materials
boundaries, J

raw

own

the years of
shortage abroad

that

dollah

in

>

the., dollar

and !that
power

.
..
" tries, taken
J Ale^-111 eve°ts\in Hungary commencing
dealt a

maye

for

qur

class it; is possible

similar trends in

destina¬

tions may change somewhat. With/
the Increasing requirements of .the

tl/ United States.
"

abroad

one of the

.
rea-1
trends- abroad

-•—-

-

high/and American
to continue at

new

middle

why- growth

about double

-

currcht levels although its

indus-

9 new deproducts.
It is

mass

h^rKets./Tms is
sons
are

January 15, 1057

increasing

creates

many

devmoom.^

KA
.




'

touch

investment

Urbanization is proceeding
rap¬
idly in various countries .abroad.
It

IF. E.

look

1975.-

of foreign coun-

the aggregate, i|
! upward
trend

an

continue
A,

f*

-

as
—

long
>

"

as;
'>

Nunibei' - 5604

Volume-185

v

,

The Commercial and Financial
Chroniile

.

American economy coritiitues
operate at a; high ltvel of- aq-

a

our
to

tivity.

■

■

_

•

'7.(211) /lit'

~f

DelawareFundNames
-

Four Officers

irtduslry,s : total sales

i f?

*

-

i

.»

,,>■

is

expected to top the

according? td Admiralj Ramsey,

t,„ -

,

/?'

>•

'"•

-

iir reviewing

•

?T-^condiftioii^-'.aiad-A

-

manufacturers

^

hac^lo|r .-of.^unfilled, orders; and

.

cpntinaed dedine lmmilitary units^ offset by commercial*air¬
craft and guided missile sales.
*'
°
IT
*

4

■

r

aii.

AmPir^a'c

;,.

1 i;

%

^

:uf^n8d°f thC

^l^^by^e

bombers atl'
>

?

♦in- e w,

p e ri/d

s

d
altitude
tniarks.?/1

/a n

the

of

Korean

fhe-natittriv

g u

id

e

—x

-

be quickly expanded

can

:

.

.

vendors.

v - According to the Bureau of Lr-

,

bor Statistics, the average number

of 80p,o00, employees moved

previous

' As.

years,

sales

somewhat

was

than

less

•

-

f

nation's

^etWairDOwe?
if

750,000),

employment

employment

production amounted to approxi- 650,000), communications equipmately 8,000 units. This continu- ment manufacturers (average em-

/

fs

employees

7,000 steel mills, rolling mills and blast

units, during. :the; year--while. 1955 furnaces /.(average

5 ^

„

the

The aircraft companies are fotlowed by the automobile industry

Output' for the Armed Services (average

2f"

th,

aircraft-industry into first place

to

between 85 and 90% of the airindustry's effort in 1956.

lu

SS

t ? i??

ing trend' i number of
e" an annual taPering Payment 550,00^), and manufa;>
in the

off

turers of cotton and rayon fabric}

units, was

begun in 1954 but has been gen-

(average

erally counterbalanced by deliv-

.

^irms makmg aircraft,
Pr°Pehers, and parts is

^

>

missiles

"

'

the military services represented among

*

alrrrnfc

/Joint ChiefStaff

-Smihf

Iti oh/ aircraft
•

1956

of

V r^ec!ine fas

i?"

up-

the aircraft industry's total wag s

Aircraft

:
;;

^

mmnto

still

was

.

—,A-J

PUrP0S6S C°nlln-

SodiJ2L

/irt 1950, these/
/ new product >

/and

■

f

'was"

end of the year. The which

.:

a r

W

and

:

'research
be-/gun:; sinCe thq-

trend

,

factoring techniques^ and on cost
reduction programs, thereby pro-

*

the

and

ward as 1956 came to a close,
According to the best estimates,

craft

industry

s1ra>t

1956

to

,vidin^''the^,.:Sr'Goy«^ih!Bnt with and salary payments to employee'}

,t,

'

f

1956

v.

.Stemming..
/from

of

p,please.
"/? drV'.'L Review

;tainmeht '6f"v

able

been

»t.hty ai transportation K**. ?£ ^^nCy,
usmess^, suryey,. transpprt^tion,

supersonic
>

/improving manu-

on

"more an power |/va uoiiai
air j^v/vr v^l per dollar." This will exceed $4,400,000,000 for 195* v
JUVA v
A nio
steady level of production has ■_.#
also arid these figures do not include
resulted in the establishment of a the payrolls of the aircraft indur, near the $3,000,000,000 substantial ' mobilization * b a S e, try's suppliers, subcontractors and

>: r

n^a^e expectedgo

have

concentrate-

product ion, :reaJized and anticipated for
military and civilian •'//
.

-1 '.

•

inaustryMh vested heavily •*<
rt/£WWy^?n.V.
new facilities, especially those
Aircraft industry employment
devoted to research and develop-- averaged-800,000 during the year,
merit
With the relatively stable Production workers increased
production level in existence for their hourly earnings from $217
the
past several : years, aircraft in' 1955 to $2.31 by September

set *n *955, and approach the 1956 estimate

-

,5"-v..

puring the year, the nation's

aircraft

in

ft

-

els.

By ADMIRAL DEWITTC. RAMSEY
(USN-Ret.)

erally is good.'..

S-,

to sales are expected to
decline soin^what-from 1955 lev-

1956-1957

.

Consequently * the.outlook for
international business in 1957 gen¬

1

1956 approximated 200 compared
with 113 during the previous year,

profits

,

458,000).

Possibly

eries

0f guided

d

missiles.

employment

even
more
significant
than the fact that the aircraft in -

Because

'

a r e

/now making a" substantial

/hutiori /to

America's ability' to sales, despite the
units is attributable
rdeten aggression,
y ,,
^
'; " Among- the noteworthy events
Hq) The fact that

reduction

in

to

did

not

drop

overall

of

Donald

Anen

m.

•

Uunaid

R.

1956

miles

the

was

U.

new

B-.dt

S.

attainment Of

speed /record
hour

per
-

by
.

a
a

a

1,015
standard

PHILADELPHIA, Pa.—-Lewis J. production Navy fighter.-Coupled
\vith this
tho ostablishmGnt

r>

Ross h.9s. been appointed Financial

Vice-President;

Jfanies

P,

was

Schel-

Of

lenger,

Corporate Vice-President;
Donald R' Blot, Assistant Treasant

miles

20

and

Nelson

-

these

pointed
out
all newly-createu

are

and

an, un--

in high-speed flight.

that

appointments are
part of a program which calls for
an expansion of Delaware's execufive staff in

Mr.

Ross, who is
of

tributors/Inc,

a

was

tyP/s -°^ ®
7/™

uisDis-

<bV

1020,

1954 and wiU

with,

has-been

and

the-mutual

cinfP

f

r

0t

'

*

Mr.

is

Of

n

chellenger, a member of
Philadelphia Bar Association,
Vice-President and Secretary

a

v.

the

is

distributing

also

Fund,

Secretary

of

medium

he 4was

accounting firms in
delphia and Atlantic City.
Mr.

a

He

was

in

thfk

number

in

1956

of

sales

compared

with

$5,188,000,000/ The

peacetfrn/'/l/Z/g/'/u? comthe ratio of
earnings
earnings
t.
■

/,

and
and

6

.

the

ratio

the

■

of

; ;

Phila-

formerly

Wash.

Foster

Not

yet

.

have

office

1L South

at

—

opened

.

a

tational

-

•

•

Stein

III

has

become

J.

connected

26-A

Public Square.

U.

Winsor, Jr. passed
away Jan. U a.t the age of 80. He
was a partner in Yarn
all, Biddle
&

Co. and in

Advances
tion

."
-

senior

.




-

ac¬

the

•

i>r

o

y>bevh T'.IOO.

as

the

America's

in¬

1956 utility

because

Within

next

aircraft

The

and

.

-

in r-6mmprcM

against

are estimated at close to $100,- equipped with 137 modern wingzj
000,000 for 1956. The comparable- of fighters, bombers and trans-

figure for

1955 was

$63,112,000. ports.

The Navy's 17 carrier air

Approximately 200 of the utility groups, the Marine Corps', three

aircraft produced

in 1956

of

air wings, and Army Aviation als »

large twin engine variety, as
against 132 in 1955.

will be progressively modernized,

were

the

With

the

introduction

.

ad-,

of

the

number delivered
•
/.-

ojjer oj securitiesjor sale

or a

Air

equipped

vanced models of existing recip¬
rocating powered commercial air-

liners,

By the end of 1957, th USAF'a

strategic

with

Command

several

"Continued

in

on

-

Share

•

share for each 14

one

as more

fully set forth In the prospectus; Unsub-

be offered by the underwriters

as

set forth in .the prospectus.

per

share

Copies of the prospectus map be obtained from such of the undersigned (who
amonp the underwriters named in the prospectus) as map I:// dtp
cjjer these securities under applicable securities laws.

are

Dillon, Read & Co. Inc.
Eastman

Blair & Co.

Dillon, Union Securities & Co.

Blyth & Co., Inc.

Incorporated

paralleled those on the mili/

Goldman* Sachs & Co.

Harriman

Ripley & Co.

/
,

-

Kidder, Peabody & Co.

Incorporated

Carl M. Loeb, Rhoades & Co.

orders and took ention43 for more than $1.1)00.000.900
worth of iet- and turboprop trans- '

Stone & Webster Securities Corporation

with American -manufacturers. Backlog of orders in all

G. H. Walker & Co.

Smith, Barney & Co.

placed

ports

Rauscher, Pierce & Co., Inc.

-

White, Weld & Co.

The Milwaukee Company

bci

its

page

January 17, 1957

Company has issued warrants to holders of its Common Stock evidencing rights, expir¬

employees exceed 291,967 shares, all

will

tof

solicitation oj an ojfer to buy securities.

Common Stock

avia¬

wiii

have met the national air power
goals set by the present Admini*;tratioh late in 1953.
By July«1,
1957; the U; S: Air Force will bt;

4,575 in 1955. Utility aircraft sales

scribed Common'Stock may

-

monthT

12

industry

shares held, with the privilege of subscribing for additional shares subject to a subscription
privilege granted tp employees and to allotment if total subscriptions by warrant holders

-

earth satellite ""
other projects .

tvpes
of commercml t^ancports
partner/of the old investment firm/ (piston, turboiet, turboprop) stood
^f Thomas A. Biddle & Co.
at $2,796,000,000 at the end of the
the past was

of

bulk

Subscription Price $24.50

tary side. For the second year in
a
row TT. S. and
foreign air car- ./
riers

James D. Winsor, Jr.
"James

aircraft

ing January 30, 1957, to subscribe for these shares at the rate of
;Y.

considered fantastic.

once

with A. G. Edwards & Sons,

devices,

vehicles and many

111.—Thomas

the

Par Value $1 per

Fourth

fSpeciftl to Tpe Financial Chronicle)

BELLEVILLE,

for

utility

plane
helicopter deliveries reached

crease

/

&

branch

Joins A. G. Edwards

^

counted

Of

in

ate ran^e surface-to-surface ^isan(j various missiles in other
Street1"
~
....
calories.
Research simultane-.
under the direction of Charles W.
ously continued on new aircraft
Delk.
fvoes including chemical and nu¬
clear nowered bombers, antig^flvi.

Prospects for 1957

the 4,823 sold in 1955. Manu¬

over

facturers

was

fighter type aircraft, and production was begun on a lightweight,
fighter capable, of attaining speeds

Foster Marshall Branch
.

7,500,, an increase of about 2,700

Southwestern Public Service Company

*

War i£

ing activities. In/World
the ratio wa& one to 25.

aircraft
reached

291,967 Shares

p-oJuction,
but
nearing the end of the research
and development cycle as the year
came to an end, were hypersonic
intercontinental
and
intermedi-

-

civil

'

,

the year ended an
several
heavy jet

wings

delphia Trust Company where he
was engaged: in trust activities.'. •

YAKIMA,

of

the

•

,

Stra¬

moi-e than twice that of sound.

—

number
durjn

f-

"

Alt pace's-

associated with the Fidelity-Phila-

Marshall

ot

This announcement Js not an

.

under way.
During the year the Navy
and
Air Force both took delivery of
large numbers of sunersonie jet

Allen,

yrar agOf

-

The
gold

and

Aircraft delivered

,

sonnel.

-

of

as

bomber

also an
attorney,
joined Delaware Fund's executive
staff

of

tactical

jet bomber for

activation

the

organization
in .1955,
formerly associated with sev-

eral

for

"

comp^t.^d

who first joined

nroductioa

Approximately one out o:t
each 10 workers on aircraft pay rolls is how engaged in engineer -

the

as

tegic Air Command was virtually

Delaware
was

1955

pany
vP// '™T ' Pany

.'missile

Produetifm

Delaware

a/post 'to- which
Blot,

Thl

*.1!-

operations

He

company.

nd

tie-

on

(d) Maintenance, in general, of
high level of research and de-

0Q0.000

continued to .use-,-an alr-to-airmissile, launched from its high- ,•
Speed interceptors, and a surface- *
to-surface

elected in 1954.
Mr.

launched

ml„sslles .wlth ,/'ela '/t1/

^

'

the

ship-based

short ranges, and a suiface-to-air

r-7- r.,

1

{

m

missile for defense acamstattack-;.,
business mg enemy aircraft. The Air Force -

.

a

emnhasis

merciaA airciatt, delivered.

-

identified

fund

ioqo •

Increased

velonment

frmyu ended tlie+year operat- ^
JP?, three surface-to-surface bal- ;

elected Treas-

of t'-e Fund in

continue to occupy that office. He
first entered tne investment fieru
in

a
missile

director and

ueiaware
Delaware

materials

velopment activity.

bomber,

"surface-to-air

Vice-President

urer

pilotless

line with the growth

of the Fund.-

of

uUBUMMV9

f
In the guided missile field, the
The 12 largest airframe manuNavy ended 1956 with operationalx,ue.
Aar^est fAI
models in every category. In- lacluring companies recorded
sales
of
approximately
$5,250,eluded
were
a
ship-to-surface

pjsts,

the

said

quantities

sharply

indicate

more

demanded

man hours than
thosG ^brorfucod in earlier years

a

Mr.

195t military

weighed

and utilization of
^

a rocket-powered manned'
research aircraft designed to explore the problems encountered

y~

announced.

greater

set by

Fund, W. Linton Nelson,

President,

of

generally

.

■consequently

official speed mark of more than -gujc|e(j missiles,
2,000 miles per hour. These were
;fp/ An L g'

Secretary

Delaware

and

unofficial altitude2 record in-

an

excess-

and Donald M. Allen, Assistof the,$47 million

urer;

aircraft

of

as

deqline in the units would

*

II

131)

Commercial and Financial Chronicle.... Thursday, January 17, 1957

The

16

(212)

THE MARKET... AND YOU
By WALLACE

WCTe

heldarLhsighbercafse
many
quarters because
their

STREETE

stock

The

comfort

scant

element

this

week

quently

the

as

and

swing

conse¬

They

*iChronicle."

good results , this year. The as
issues have had little market

in this

those

with

coincide

t{me

assure

not necessarily

do

articie

at any
of the

presented

are

BEVERLY

HLLS,

editor

Prentice-Hall,

with

an

has

S

those of tto arthpront,.] ■
-

Calif.—Rob-

^expressed

—•

ert Vulcan, for the past year

Director

_

of

Research, it

was

an¬

nounced
by
B.
Gerald Cantor,.
overdue on at action despite a 1956 freight Continued from page 2
.President.;
least one fling in the limelight
car production that was about
Mr.
Vulcan
received his
B.A.
were,
instead, somewhat double that of the previous '
7 degree 7 from
the
University of
prominent in posting
new
Southern California, where he was
year. Standard Railway.
lows for better than a year. <
a
Phr Beta
Kappa student.
He
Equipment, for one, is being ¥ f 1I1A KAci
also
studied
at' Columbia
Uniprojected through this year to- I'IIIIW Wv3t
Bright Spots
a doubled profit. This, in turn,
buiIt several of the test sleds
^ce.^his Ph d"
/
The list was being culled
will make it a candidate for ;now being used by the Air Force
New Schoof for
a bit more actively for' some
better dividend
action over and Navy.
Social Research this fall,
brighter spots that had shown and above the present rate
(4) External, Stores: JettisonHe was a branch manager and
oVirvtirc
of arntmd
ability to fight off the selling which shows a yield X)I around able.fuel tanks and pods of van- security analyst for J. W. Kaufous kindS used to house numerous
mamE &
Co., and did operations
or for those already well de¬
,7%. The stock held ldr-ayesr classified instrumentation.
research for Popular Merchandise
pressed - that might be
in in a very narrow range out of
(5) Sophisticated Test Equip- Inc., of Rockville Centre, Long
position to make a turnabout. which it recently erupted on ment: Since it is a problem to Island.

bullish

the

to

bull

the

offered

market

that

backlogs

S

of '

high-level activities and

large

Robf. Vulcan Joins

jainers for its own and other Cantor, Fitzgerald Co,

equipment issues

Railway

and ^ glass pon-

Favored tor in plastic

Railway Equipments

were

-■

..

.

steels

ended

their

surge

long
with several losing

sions

that

hacked

bit

a

up¬

ses¬

vi¬

ciously at values of such as
Bethlehe m, Inland a nd

■

Youngstown Sheet.

-

.

Sugars Strong

j It

general retreat in
section, with such

was a

the ferrous

a

usually slow-moving items as
U. S. Steel giving up a couple
of points in a single session.
The chief support for the con¬
side

structive

by

Houston
Lighting & Power which not
only put two successive gains
together when selling ,was
general but also carved out
one of the best gains on-the
category

mer

furnished

was

for¬

fitted into the

that

One

the; sugar

issues which
continued to show as regulars
pn the new highs lists, includ¬
ing American Sugar which
erupted on one of the wider
one-day gains of the week.

was

the

check out the instrumentation on

upside, which sometimes
i

•xi

is

the

j

+

prelude to

newest bombers, Centry En-

.'our

worthwhile

a

Two With A. G. Becker

gjneers bas designed and built
telemetering Truck which is

advance.

(Special to The Financial Chronicle)

~

a

'

7

actually

Drug Issues Win Support

Characteristics

station.

radio

mobile

a

airplane's

of the

111.

CHICAGO,

Richard

—

H.

Mabbatt and Arthur R. Rapp have

1»7.1
instruments are scanned by become associated with A.
G.
Drugs shares also had many sound, by scope and/or by tape,
champions with the merits of Tape recording can be played Becker & Co. Incorporated, 120
board on one of these.
one issue over the other formback to simulate flight conditions. South La Salle Street, members of
in? a brisk debate
Merck & Also' the-company.,is licensed by the New York and Midwest Stock
Prices of the actual commod¬ 7 This action
'/Ji
w
-i
1
North American to praduce a by- *
,
twkfnrm^Hv
gets impressive
Co., which has no single prod- dra„Uc^ vibrator and% currently5 Exchanges. Both were foimerly
ity continued to race uphill, backing from some of the past
uct on which its fortunes rest, in production on a vibration ma- with Weil, Pearson & Co.
helping the shares keep their performances of Houston was
popular precisely for its chine for the Air Force.
^
:
•
progress going.
Lighting as well as additional lack nf Henendenee on a sillCentury Engineers is estimated
-

_

.

j

1.

ot

lack

i'fi

#

aepenaence on a sin

from the company's
gle item. Earnings have been
Motors were a weak spot. ambitious expansion program
stepping ahead smartly ever
Tales that steel demand had that aims at nearly doubling
since its merger several years
been levelling off, chiefly due capacity over the next three hack with Sharn & Dohme
back witn
bnarp & uonme.
to trims from the auto mak¬ years. The company operates
Foreign operations have been
in a fast growing area and the
ers, did their work on both
growing importantly and new
groups and General Motors in increase in home consumption
particular
within
its

making a stand
easy reach of

was

rather

1956-57

Chrysler

support

low.

Ford

such

in

not

were

and

imminent

danger of violating
their lows, although neither
was able to
show any inde¬
pendent strength worthy of
the

name.
;•

■

■

*

*

American

had

advanced

dozen

7. 7

*

Telephone which

points

around

half

far this

so

a

year

persistent, near-sensational

on

strength, ground to a halt at
least temporarily as the gen¬
eral market turned heavy.
']:
"

t>

:!<

*

.•

The

over-all

performance
strictly in line with the

was

work

of the

technicians—re¬

peated failures
the

on

industrial

the part of

average

to

work

through the 500 level
breeding subsequent reac¬

double

alone in the

area

the ,average

rise for the na¬

tion

as

a

was

whole. Its costs, con¬

sequently,

being

s

abroad
abroad

this
tnis

vear

results
a

are

to

near

t

t

a r

the

year,

.

,

%■

a

matter

on

fact,

the brink

new

low for

of

*

poised

dipping to

more

Sjt

was

than

a

a

year.

*

r

.

n

n

as

ry

n

there
Both

were

the

individual

w

for

other frustrations.

food

groups which

and

"store

best
paper

profit-margin i
field

but

nudging its margin
er

since

tion.

last

Unlike

the

n

has

been

even

year's
the

high¬

acquisi¬

other

paper
a

re¬

turn

recently of less than 4%,
.Ijnion Bag's well sheltered
payment

runs

largely sat out -41-2 % level.




$3

par

of

5%

$7,500

7

r

77

.

ac¬

around

the

accordance with a call made
by the Superintendent of Banks pursuant
to the provisions of
the Banking Law of
published

in

the

of

iment

I;

:

aan

Equip. Tr. Glfs. Offered
Halsey,
manager

of

Stuart
an

&

Co.,

Inc.

series

Aug.

A> maturing semi-annually
1, 1957 to Feb. 1, 1972, In-

elusive.
The certificates, first install-,
ment
an aggregate issue of
$14,160,000, are priced to yield
from 3.50% to 3.80%, according to

its day.

J'

x

cent

merger

Drug

A

more

"

re-

c

tboriza^on of the Interstate Commerce Commission,

gave

also

a

tion.

with

It

leaves

corporation
sified

Emerson

The

entire

issue

of

the
7,

one

as a

in

surviving
,

~.

o

widely diver-

.

t0 cost $18'909>600.
Other members of the

group

are:

Baxter &

.
offering

Co.; Dick &

the

drug field, Merle-Smith; R. W. Pressprich &
balanced between ethical and Ca; Freeman & Co.; Gregory &
proprietary
druVs
and
Scms, Ira Haupt & Co.; Win. E.
-f
Bblloek & Co., Inc.; and McMaster
metid^J^addition, it is a lacv. Hutchinson & Co..
^
.

.

;

Government

States

13,746,693.61

3,033,494.29

—

(includ¬

discounts

and

•

and

States
subdivisions

political
Loans

and

direct
of

Obligations

17,898,228.04

ing $2,415.61 overdrafts)—
none;

tures

73,008.92

,

owned other than

Real estate

premises

banking
Other

owned,
and fix¬

premises
furniture

Banking

assets

$11,842,728.94

-

LIABILITIES

deposits

of

partnerships,

viduals,

154,616.08

—

-

:

Demand

23.120.32

—--

ASSETS

TOTAL

;

:

$6,913,567.68

obligations,
guaranteed

indiand

corporations

/
v

•

-

■

:

$22,152,329.63

-—

deposits of individuals,

Time

partnerships, and corpora¬
tions

x

Deposits

3,900,170.23

-

-

States

United

of

Government

256,871.71

—.—-

Deposits of States and political

" <

10,759,317.95

subdivisions

Deposits

trust

banks and

of

;

>

Ui-^745,297.47

companies

deposits (certified and
'
officers' checks, etc.)_
i_ /*'•»

Other

Other

•-~i—

LIABILITIES

$38,406,801.10

liabilities

CAPITAL

—

ACCOUNTS

$1,000,000.00
1,000.000.00
1,435,927.84

Capital t
Surplus fund
Undivided

*

,

profits

——

AC-

CAPITAL

TOTAL
1

$3,435,927.84

COUNTS

-

TOTAL

AND

LIABILITIES

$41,842,728.94

CAPITAL ACCOUNTS

tThis

340.535.33

$33,154,522.32
252,278.78

DEPOSITS

c.anital

bank's

stock with

total

par

rons's^ nr

$1,000,000.00.

value of

MEMORANDA
Assets

pledged or assigned to
liabilities

secure

other
(a)

serves

(b)

as

after

are

$8,930,425.30
re¬

of

reserves

K.

deduction

of

above-named

above

statement

knowledge
V

'•

Correct—Attest:

.-

•

iaj true

the
certify

of

to the

and belief...'
K. YYJ
" »•

LANDFARE.
.

■

;
-

FORD) .
PERCY MAGNUS}Directors
JOHEEE. BOOTH)
"" "
SUMNER

•

204.970.08

—

Comptroller
institution,
hereby

Landfare,.

W.

.best-of my

123,775.81

—

shown

as

after

are

of

the

of

deduction

I,

27.

for

above

shown

Securities

above

that

and

purposes

Loans

pne
*

•

collection

United

certificates

it Bromo Seltzer, is to be secured by 93 dieselwidely known prepara- electric locomotive units esti-

companies,

including reserve balances,
and cash items in process
of

■

.

other

with

banks and trust

is

which is offering today (Jan. 17)
$f>650>°°0 Norfolk & Western Ry.
% equipment trust certificates,

assets";"-

•

balances

Cash,

TOTAL

underwriting group

York.

New

'•.*'.• \r-

Norfolk & Western RR.

acquired Sloan's Lin- maturity. Issuance and sale of the
which was a famous certificates are subject to the au-

of

State

'

TOTAL

the time of- World

•

War I it

business

of

,

dividend

New York 4, N. Y., at the
on
December 31,
1956,

50 Broadway,

close

on 50,000
convertible
should
be

requirement

of

tx

.

better

tion this year.

companies that showed
groups

$1 par common
outstanding, which after the

of

x-

date

of last year.

p-

xi

...

Among

of

conversely, about 60 cents per share. (Aslargely because suming full conversion, earnings
i+o
Per share would be estimated at
More in the nature of a re¬ one of its products, Bufferin, ak0ld 50 cents per share on 230,has been making sensational 000 common.)
covery candidate
is Climax
inroads into the aspirin marThe convertible preferred is all
Molybdenum which suffered
ket. Not that this is the only beld by employees
an
The common
earnings dip last year from
1S currently being traded
in the
operating on low-grade ores. product; of the .firm. It has Over-the-Counter Market, beThe company has returned to several other proprietary tween 4%
and 5»/4
per
share.
higher grade ores and is a drugs about ready for exten- While this present price is well
candidate for increased prof¬ sive sales promotion. But the hi line with earnings and book
value (over $4), I consider this
its this year. Its well-covered growth of Bufferin has been stock to be best
appraised in reiadividend is well above the 5% enormous, although heavy .ad- tion to its potential value. Future
line.
Moreover, uranium vertising that has gone along earnings should develop from rewith it has kept profits from sea.r^h
aLd development costs
operations of a
subsidiary
Pi
ii
written off over past years. Dehave been growing as well as fully reflecting the success, fense
spending and labor saving
its participations
in the oil Nevertheless, the over-all re- investments by industry will both
contribute
to
the
fortunes
of
business. One estimate is that suits anticipate a gain for this
Century Engineers.
its
petroleum income
has year and the stock is already
grown to around $2,000,000 widely mentioned as a candi¬

name

of

of this type because of different

shares

Company

ago.

not highly

favored

was

uw-

as

year

a:
are

significant, however, in companies

preferred

namp

liquidation along

reported

comparisions

shares

■

A

The rail average,

profU

dividend

>

'/*■

vear

the way.

$162,000

OF

Underwriters Trust

with net

1955)

CONDITION

(vs

e

growing company in the
The
Warner-Lambert
Pharma¬
long dormant rails, paper field is Union Bagwhich, it had been hoped, Camp Paper which added im¬ ceutical is, perhaps, the mergwould wake up and take over portantly to sales half a year er item in the group. More
a
d
man
leadership as the industrials ago when Camp Paper was than a year ago tho old
the
faltered, chose instead to ac¬ brought into the fold. It is the Warner-Hudnut company acpaper bag producer quired Listerine by merging
company the senior issues on largest
the downhill slide, although and ranks high in other
paper with the Lambert Co. and as-?
they are well enough de¬ products. In the financial suminf? the nrpspnt
',n® Prescnt name.
pressed so that there was sphere; it not only had the p
little urgent

in

1956

after taxes somewhat above the

providing/stock

v - :■;.

million

in

Bristol-Myers,

Recovery Candidate

*

..

$4.2

jgQQQQ

quarter of total sales.
■■■'

of $6 8 million

OF

REPORT

billings in the neighbor-

haye

d/accounting expediencies; adopted
foreign from year to year. There are now
foreign

trie

well under the

are

tions.
*

are

national average.

:■!

*

plants

to

hood

Number 5604

185

Volume

The Commercial

. . .

and Financial Chronicle
17

(213)

These consols

Electronics Outlook for 1957

containing

the trade

of electronic equipment came into
its own in 1956: Introduced first

in competition with tele¬
vision, there were 3,024 radio sta¬
tions on the air, or an increase of

million

in

210

another
find

we

continuation of the upward trend in the general economic
and electronics field in 1957, and possible doubling of the
electronics industry in the next several years, are predicted
A

time

Acknowledging the declining TV manufactur¬
Mutual Fund head expects 1957 output to match

by Mr. Tripp.

of

area

electronics,

remarkable

a

One of the smallest of all

will

transistors,

and

sets

raise total

of

manifestly clear that elec¬

It is

fastest grow¬

still the

is

tronics

segment of the U. S. economy.
1956 gave evidence that

ing

The year

field of

this

lost

pendent

forefront

the

we

indus¬

the

trial picture

years.

feel that the increase in other

of

the

electronic

field

will change this situation sharply
over

the

next five

In the

years.

forefront of this

few

change is the al¬
ready ' noteworthy growth man¬

This has

been

today the elec¬

largely de¬
military demand, but

on

segments

in

compara¬

a

tively

out of the

tronics market is still

to

electronics

fact that

a

accom¬

ifest in

industrial

the

plished despite

in

natural ad-

electronics and

are

justmentswith
which

were

concornmitant

a

to

Such adjustment
into 1956, especially in

continued

The

•

growth.

rapid

television phase,

the

Tri

D

ch<,8ler

computers, which
finding a broadening applica¬
tion in all phases of the economy.

field

the

confidently foresee

but we

can

end to the

an

of

use

total

output

measured

products,

of electronic
by

with

at

use

37.5

the

The

factory

softest

in

area

1956,

sistors

the

we

this

area

in

transistors
sales in

should not overlook
matter of

a

decade and lose

made

about

nearly

a

unit

such

areas

automobiles

as

and

building, for example, nonetheless
when

the

final

tabulations

made, the record
the

year

tivity.

was

We

show that

will

record

of

one

are

Gross

that

estimate

ac¬

National Product, which measures
our national
output of goods and

services, will come
about $412
billion,

rest at
all-time
record. It should be noted, at the
same time,
that the last quarter
of

1956

indicated

to

an

GNP at

an¬

an

Middle East
the

U.

S.,

National

or

we

other

areas

Product

A

a

of

billion to $430 billion.

further indication of national

economic

health

in

1956

the

was

magnitude of Disposable Personal
Income, which measures the pur¬

chasing ability of
estimate

register

that
a

people. We

our

calendar

new

will

1956

all-time record

of

$285 billion, with the fourth quar¬
ter of the
"year at an annual rate
of $292 billion. In

produced in 1955.
of

of

these

1957

are

however,
as

a

that

whole

proximate 1956.

point
phase

of the

in

reduced.

We

tronic field is the

ex¬

output

ap¬

none

too

Services

in

of mil¬
ascending
cycle and since electronic prod¬
ucts are finding wider application
in aircraft, it is conservative to
forecast an output of $3.25 billion
for military use in 1957. Govern¬
ment
expenditures
for
guided
missiles are expected to amount
itary activity is in

to

billion

$1.25

fiscal

for

the

and

in

activity this

for

electronics

year,

in

the

the

1957,

the

immediately succeed¬
ing years, is bright.
Electronics
has for too
long been measured
by the yardstick of television,
which though a "glamor" division
is by no means the

guide to proper

understanding of the whole field.
To

fully

comprehend

both

the

activity and the potential of elec¬
tronics

broad

one

must

application

consider

of

ing

en¬

a

seg¬

billion,

there

This announcement is neither

an

that

At the end of 1956

television

494

were

year.

an

broad¬

operating, compared

Of the

offer to sell tior

The offer is made

times the

is

it

realistic conclusion
of military pro¬
will go ahead at an in¬

curement

a

volume of about
With the probability

another

of

going

on

40

increase

an

color

television

in

telecasts

the

number

The

area

of

electronics

as

The foregoing,
projections made

and

whole

any

¬

pansion is that embraced^by in¬
dustrial and commercial applica¬
tions.
Industry is doing every¬

economy as

in

electronics in par¬
ticular must be conditional since
no

one

or

claim

can

omniscience.

of

the

the

the

On

power

basis of

electronic

previ¬

1956 total, 393

we

witnessed

growth

during the past decade will

a

solicitation of

an

tive to say that in the next seven

the electronics

years

the factor

double
its

products

and

of

field could
demand for

services.

offer to buy these securities,
,

February 1, 1972

(To bear interest from February 1, 1957)

1972 unless called for

The Company

after the

is offering these Debentures for subscription to the holders of its Common Stock,
Subscription Warrants are being issued as more fully set forth in the Prospectus. The
expire at 3:30 P.M. Eastern Standard Time

on

January 28, 1957.

During and

subscription period the several Underwriters may offer Debentures, all as more fully
set forth in the Prospectus.
,, •. < j. .
.
; ■

thing to reduce manhours per unit
of output, to improve quality of

product

and

to

avoid

losses

through improper processing. The
answer
to all three problems is
contained in the application of

Subscription Price 100%

Copies of the Prospectus
dealers

as

may

obtainable from only such of the undersigned and such other
lawfully offer these securities in the respective States.

are

Approximately $800 million of
electronic

equipment

the

electronc

5

$1 billion output of electronic
equipment for industry use ap¬
pears

Harriman

was

reasonable for 1957.

Ripley & Co.

Incorporated

The First Boston

Blyth & Co.,

Inc.

Kuhn, Loeb & Co.

Corporation

Drexel & Co.

Glore, Forgan & Co.

Eastman Dillon, Union Securities & Co,

Goldman, Sachs & Co.

Kidder, Peabody & Co.

Carl M. Loeb, Rhoades & Co.

Lehman Brothers

significant element in the
industrial electronic field will be
the stimulus given to the instru¬
mentation segment by nucleonics,

Merrill Lynch, Pierce, Fenner

particularly for reactors.

Stone & Webster Securities

A

of radiation

Because

hazards, it is impera¬

tive that all such installations be

U. S. economy.
Further, one must
bear in mind an important growth

for both measurement and control.

equipped with instrument consols

January 14,1957.

& Beane

Corporation

con¬

It appears to us conserva¬

tinue.

only by the Prospectus.

4%% Convertible Debentures, due

Warrants will

field,

must conclude that the pattern

electronic

of

Niagara Mohawk Power Corporation

whom

of
our

presuming that world condi¬

$46,224,200

to

other,

to the future

as

previous redemption, at $31.75 per share, subject to adjustment under certain circumstances.

which

,of

well, advertis¬
ing revenue may be projected at
approximately $1.45 billion.

Convertible into Common Stock of the Company through February 1,

contains the germ of largesst ex

stations

the air during 1957, and

creasing tempo.
Wonders of Electronic Controls

a

1952

$450 million.

New Issue

compared with $917
iri the 1956-57 year and

$569 million in 1955-56. Because
of military
urgqncy
to perfect
an
intercontinental ballistic mis¬

total

with

proportions in the ensuing year,

service

with 459 at the end of the
ous

will

tions will not deteriorate to major

stations

cast

1956

compared

"Printers Ink" figure of $1.02 bil¬
lion
in
1955
and
nearly three

rather

a

important part of the overall

an

television advertis¬

in

product, it does constitute

provides

than

that

revenue

$1.24

year,

million

principles to the commercial, in¬
dustrial and defense facets of the




estimate

studies

1957-58

produced in 1956, a material ad¬
vance from the $660 million pro¬
duced in 1955 and a sharp in¬
crease above the $570 million in
1954.
This upward trend should
accelerate in the years ahead and

of

to which broadcasting facilities in
television, for example, were put
is much more enlightening.
We

an

lishing what
pattern

ture of the growth in this segment
of electronics, however.
The use

Since

1955.

such

outlook

The number of stations in oper¬
does not give the full pic¬

and

this

2,814

ation

a

tcf

the

over

whether it be in the

contribution

makes. * While

stations

the guided missile segment

projections,

feel will be

such

the air at the close of 1955.

on

its economic health which broad¬

ment

From the stand¬

was

vival

casting

for

will closely

industry, the profit

1956

ob¬

but by no means least in
appraisal of the entire elec¬

an

while inventories in the hands of

pect,

re¬

the

Last

will probably be under
corresponding period of 1956

distributors

with

Stations

a*

among others considered in estab¬
we

fact

TV and Radio Broadcasting

1957

the

unit prices

The early part

4

others.

Electronic's Bright Outlook
view

the

must be used.

in 1957 and

precise electronic controls to ma¬
chine tools, fabricatig equipment
1957, our stud¬
and processing operations. A siz¬
ies indicate a
probable level of
able start has already been made
Disposable Personal Income
of
in this direction in such industries
$300 billion.
as chemicals, petroleum, soap and
In

from

duction high

Gross

range

results

electronic nature

establish

will

$55

equipment 6f

outside

expect that

another record within

$425

in the

tensions

close to

jective of enlarging their markets.

that this segment

increased

come

with a value of
million.
The lower

of the fact

sile,

or

could

factory

picture because

has

war

1957

that

prices, in 1956 is estimated at $6 couraging because of the impact
billion, up from $4.45 billion in of lower-priced portable televi¬
1955.
We anticipate a new pro¬ sion sets.
In the last quarter of

nual rate of

$420 billion and this
significance in casting, the
mold for 1957. This year, barring

of

vision set production in 1956 to¬
talled 7.22 million sets, not much
below the record 7.76 million sets

Armed

atmosphere of the general
conducive
growth in the electronic field.
While some clouds hung over the
picture of industrial activity, in

indicates

value

ducing

to

The

12

value

that manufacturers have been

U. S. economy was one

years.

about

a

contemplating the future of this
phase of the electronic art. Tele¬

level, the year just ended, factory sales
of output at $6.65 billion.
Out¬ of
portables
were
aoout
20%
put of electronic equipment for
larger than table models.
the military is estimated at $3
As to color television, there are
billion for 1956, an advance from
the
$2.6
billion
taken by the no exact figures, but inquiry in

adjustment period and a renewed
surge upward
in the next few

totalled

million units,

25

in

perspective in

our

1956

approximately $34 million. This
is
an
astounding increase over
the
3.25
million
units, with a
value of $11 million, produced in
1955.
The enlarging market for

electronics

tremendous advance

in

million units and had

last year was acknowledgedly that
of
television
set
manufacture.

However,

equipment

tubes with this "mighty mite" of
electronics. Factory sales of tran¬

million
of

end

freq\iepcy channels apd $§ were
broadcasting over the ultra-high
frequency band. Further, despite
misgivings over radio station sur¬

find broad appli¬

soon

boratories of business

increased

Soft TV Sales

For without electron¬

theory and progress into
of practical utility.

area

It is

brought

had

of

the

which

power,

in

have

compared with 35.6 million at the
close of 1955 and only 17 million
in place five years earlier.

year.

ics—embodied in instruments' for

realm of

of

none

dynamic

its

sets

electronic

move

hearing aids, the transistor has
graduated to the radio set

now

and should

manufacturers to replace vacuum

radios

incipient progress in the field of

nucleonics cannot

some

radio

cation in computers. Considerable
research is under way in the la¬

emanating from the still

nucleonics.

For

that

saturated, but at the end of

phenomenally

measurement, control and safety—

had

activity

element

1955.

assumed

tomobile

to the instrumen¬

output

in

was

pieces

1956 there were 142.2 million ra¬
dio sets in use, in contrast to 138.8
million at the close of 1955. Au¬

by nucleonics, and further expansion in radio

products from $6 billion in 1956 to $6.65 billion this

units

it

was

ing pace,
the 7.2 million sets produced last year, accompanied by a
rise in color receivers. Believes defense and industry spend¬

particularly due to the stimulus given

using the very-high

were

advance

-

recorded in

tation segment

stations

1956 in radio output.
This
approximated
14.4
million
sets last year, compared with 13.4

In

President, Television-Electronics Fund, Inc.

ing,

indicates, sales of about

225,000 sets, in 1956. As jpore colpr
programs are put on the air, it is
expected that sales in 1957 would
reach 350,000.

instruments.

By CHESTER D. TRIPP

,

are quite elaborate,
large assortment of

a

Smith, Barney & Co,
White, Weld & Co.

Financial Chronicle

The Commercial and
18

includ¬

various areas of the world

This js extremely sig¬
nificant.- The dollar gap has not
been closed, although Europe is
ing Europe,

Overcoming Oar Advantage,
Or

Permanent Dollar Gap

a

By ROBERT S.

NIELSEN

California

Economist, Standard Oil Company of

Looking back at ten

advantage to

American cost

Attributes

trade.

personnel

and

capacitv,"

"reserve

Tt

legitimately, be asked

now

cp^

spite of buoyant economic condi¬

there tfor

is

chance

what

tions,

Particularly

most in this
engaged in de¬

when

latter category are

velopment

which

programs

and

overseas.

■believed
now

that

"dollar

the

Dollars

"world

gap"

feature

is

of

re¬

ceived support

in

ger

slices from an ever-increasing

b y

Geoffrey
Crowther,
Managing Di¬
Economist," at
University
on

by

M

The world

defunct.

r.

under

Robert

that

Nielsen

S.

operates

now

myriad of controls and
restrictions, and in this changed

Crowther
stated

economists. Nineteenth
liberalism and its foster

child—free trade—are both totally

his

reasons,

most

century

Without

1956.

giving

and trade

in trade

occurred

have

of

2 3

Important changes

policy in recent years, but their
significance has been overlooked

California

Berkeley

this belief
misguided, but is com¬

suggested that

pletely wrong.

the

Oct.

is

It

is not only

rector of "The

at

pie.

trade

No End to Dollar Gap

Mr.

of

strong;

a

continue well into the foreseeable

the dollar gap reappears
after year like an unwanted
guest. The United States is richer
than the rest of the Free World,
and each year sees it becoming

future.

still

the

setting

dollar

shortage

had

year

existed

time and

some

he

quite

for

expected it to

thought is contrary
to the general belief held in the
United States and in Europe. We
Jiave become accustomed to
told

the

that

trading

Gap

dollar

shortage

correspondingly acute for
of the trading nations of the

world.
The

United

States

has

tried

help correct this situation.

the

July

pattern*

bilateral

only

to

believe

return

1928,

or

that

to

the

if

We
we

are

domestic markets

have proved

unsuccessful.- It is true that many countries
have
imposed restrictions on
American imports in the postwar

ers

world
dollar

and

than

through

$51

and

are

Total Postwar
Period

From

billion

credits,

June

in

both

foreign

military

Before Korean

Invasion

-

to

•->

Invasion

10,987

9,286

increase

26,260

25,076

15,611

Survey of Current Business, October,

10,075

Europe, but

increased
rected

to

countries.

in

amounts

the

Grants

recent

have

and

economic
more

been

di¬

credits

for

purposes

he is,

after

the

program,

finds

have

of

the

it

than

located in the foreign land

commencement

the

United

necessary

to

of

States

the

still

give aid to

earnings.

However—herein

which

difficulty

countries

have

the

lies

dollar-defi¬

the

had

have

face.

to

the

to

be earned.

The

America

has

in

a

certain

have

It is

one.

to

it

necessary

oversimpli¬

an

the United

say

be efficient without

it

but

is

States
try¬

even

to

correct

American

suggest

businessmen

the

world

spur

Of compe¬

Their ability to do this re¬

adversely

the fortunes .of

on

Hicks

Professor
ward

unable

are

clear

abroad.

It

tives

a

thfe

at

tion- in

which

has

his

sugges¬

'printed

essay

for¬

put

in

the

1953.

He

believes

is

due

achieved.

the

other

dollar

has

and

been

the

countries

Professor

this "as

rate

have
Hicks

emanating

only

productivity changes in the
of

greater

output; at

lower

unit cost by the American worker
vis-a-vis the
is

oost

tries.

Pittsburgh

Address
partment.

-

Chicago

-

Cleveland.

Loans and Securities De¬

Teletype: CV 240.

the world.

It

advantage in
But

this does

many

not

indus¬

cover

the

complete situation. It is suggested,
in
addition, "* that* A m e r i c a's
comparative advantage in inter¬
national
•areas

trade

that

regarded

OHIO'S LARGEST BANK

rest of

true

that
high productivity,
mainly due to heavy capital in¬
vestment, gives the United States
a

is

are

most
not

marked.in

normally

significant by econ¬
omists, but which are, in fact, the
important reasons for this coun¬
try's
continued
economic
su¬
as

premacy.

Assets Over One Billion Dollars




This

•

•

cost

Sales and

means

that

Marketing

even

where the

advantage due to productivity

differentials

-

in

in

as

particularly
is

industry

is

not

valuable

world,

been

European

.There

markets, hov
financial status h;
not been the limiting factor. T
European exporters correctly
are

some

where

ever,

United States-domest

sessed the

market,

being the most valua

as

one

this mark
have been only partly successf

companies
have

con¬

and

all

at

levels.

Use of Native Personnel

variation
the

economic

use

theni to

for

tempts

tariff wall is not the

and the

this

for

reason

improves

American

still

method

penetration

by

of

indi¬

It is often less expensive
local skills than to tram

The pres¬
of native salesmen eliminates

opposition
within

to

foreign

certain

operations
It helps

countries.

to lay the foundation for

ties

to

increased
further

consumer

lead

spending

opportunities for de¬

velopment.
The
cessful

some

with

this

been

have

system

in

—

mind

Scotch

nationals

participate

in

a

have

the

where

denied

right

to
and

This is true in

the

locals

express

sincere desire to share with the

Americans the development of the
Canadian economy.
Another

reason

for

the

United

Statqs'

general comparative ad¬
vantage in international economic

relationships is to be found
their ability to recognize and
ploit valuable markets. This

in
ex¬

point

is

clearly

one

of

Volkswagen
and

it

but

these

Japanes

tto
rathe

exception

rule.

ca

bicycle

suggested

is

the

are

the

note

is

it

And

worthy that all of these commodi
ties
have
been
tailored
to fi

allied

to

superior

the

previous

marketing tech¬

It

is

that

mat1

advanced

by

significant als

considered
where

even

tional" market

advantage
tained

Eurc

Western

"trad
advantage, such

countries

pean

has

have

a

been

often

man

only by excluding Amer

competition through quota
exchange controls or impoi
can

licensing. The British dominion
in particular, have all shown
marked preference for America
products

whenever

these

impo

barriers have been lifted.
Too
kets

often

have

handed

granted

traditional

the
been

fashion

country.

in

treated

by

Canada

m^.

of!

the "mother
is
taken f(

by British exporters an

investors, but the Americans re«

niques.

ognize it for what it is—the mo

The domestic U. S. market
is, of
course,, the most valuable one in
the world
economy, and, as would

rapidly

area

world

govern

be

expected, the Americans

is

never

it.

con¬

But

this situation

for

granted-^-the

taken

American businessman is continu¬

ally analyzing the domestic
ket

in

order

to

find

mar¬

additional

developing
today — and

economic

British

conduct

motor

Australia
after
a

too

had

in

General

plant

local

to

the
according

firms

moved

Motors

had

manufacture
But

m

fashio

integrated

automobile.

of th

set o

the

fir

they wei

late—General Motors alreafl
a

1

sam

keting techniques.

mapa£fement

marketing affairs.
Canada

the

•

watches

than

the

whiskey, British

both

in marked contrast to

the* Americans

Y.

penetration hi
it is true. We can ca

occurred,
to

in

been

accompanied

In-fact,
resentment has usually
only arisen
when

\:

Some

suc¬

cf the other nations.

foreign

underl;

American demands and have

Americans have

<

to unde.

fundamentals

category!)

china,

and

often tl

Too

failed

been nominal;,.their attention!
advertising slight; and their ma'
keting' techniques generally i
ferior,
(Too often the commot

Swiss

payments

re|*j

althou;
industries ha

some

have

the

economic structure by building
up
a
cere of well trained
specialists.

income

a

failure,

from this.

suffered

sound

a

Their

enter.

penetrate

to

ing the market. Their research h

import Americans.

ence

Th

and

countries.

oil

East

.

stand

and

evaluated.

cjo|rectly

general argument being pri
sented.in th^s article.

foreigners

to

;l,

son

areas <

when they hav

the

undoubtedly

fields

viduals.

h<

nece;

howevef, merely lends support

all

This

th|

world

market

even

sistently
pursued
a
policy
of
training for the Arabian people in

.furtner

correctly

free

successfully invade

to

the

of
the

the

the financial status

also

Australia

American

trol most of

Superior

is

Middle

countries

America

Hot

considers

the

the

act

repre¬

the; disparity, the
developed and underdeveloped
of economic ad¬

achieve

most

sense

-

And

to

America—it

true
the

some¬

marketing

This

South

of

some

of

sary

of

representa¬

operate

to

rate

which
to

that

rest

Penetrating U. S. Market

and

sentatives.

equally

a

States.

stated

be

lacked

when

corporations

they

sales

in

tj

aid, has proved valuabl

United

can

the

Americans.

in

S.

the
It

themselves

their

in

in the penetration of

disadvantage alongside

American

Oxford Economic Papers of June,

from

We clear for dealers in New York

puts

that tl<

grants and loans, particular!
Western Europe. The rt|
.in
Europe
since Worl
War II, almost entirely the resul

lean

.psychology

argued

government

covery;

course,

countries

is

natui

those to

complement,

shake

to

this

of

Increased

somewhat similar

a

which

CLEARINGS

which

East

its

heavily on
nationalized undertakings at home

can

foreign competitors.

able

.

its

reaping 1!

valuable markets of the world

,

and

be

States

helped

is
the fact that his thinking will be
closely
geared
to
the
"profit
"competition." Many

also

can

United

to

;

agriculture
is

It

....

of U.

motive"

are

Middle

(oil), while Australia
an
example of development e|§^
tension
(automobile production! 3

by a first-class, sup¬
sales management staff.

Extremely important, of

The

resources

in

is.

t

ij

Capital

example of investment in

porting

commerce

"of

areas

where

and

could

simple fact is that
comparative ad¬

industry,

,

between the

SPECIALIZED—PROMPT

benefit

his -Ameri¬

with

com¬

dollars

where

markets

vance

DEALERS

and the Americans

conditioned

in

unable

been

big

pete with 'American producers •in

shortage

SECURITY

touch

J

worli

be

superiors, and returns home
periodically for refresher training
in the very latest marketing tech¬
niques. In short, the American

U

ti

into what may be termed the
"v;.
uable" market areas of the

where

He

private

on

can

true

tition.

vears

stationed.

be

may

o m e s

invariably led the way. Americi
capital, under the spur of ti
profit motive, has found its w

U. S. Consular and
governmental /authorities

their

niques under the

10

this -process

parf bf

other

phasis has been placed on devel¬
oping exports in order to increase

develop and extend superior tech¬

become

be domiciled. He can
complete co-operation

may

d

logical prerequisite
penetration of international ma
kets by American businessmen,

completely familiar with the

sure

r

market is a

,

he

to
anticipate
consume
even
before the
con
has crystallized his
desire;

Penetration of the

language of the country in which

ploying nationals of the countries

important than military aid.

However—more

years

underdeveloped

exports to the United

generally been recognized by
concerned, and em¬

acts

ern

demand

—

countries

ing,

1»55, U. S. Department

analysis of the
he operates, and

up-to-date

has

the

can

Commerce.

this

and

market in which

times vary this procedure by em¬

that

of

,

proportional to the increase
in imports from that country.. This

fication

1,701

51,336

-

trying
sumer

the

product he sells has both "useappeal"; and
"eye-appeal."
His
efforts are backed by a complete

vib

withi

preference

and

friendly

countries. In truth, he is

pr0d
a

States, because it lead
to a better awareness of
just wha
products will sell in large
quan
tity. The producers are-actual

cartoons

unfriendly
normally
a hard
working, capable, univer¬
sity
trained
individual,, replete
with confidence, because he knows
both

existing

the United

in' various national newspapers of

States

to

After Korean

25,686

proportion

by

for these commodities is inelastic.

when

i

Other Credits

largest

substitutes

real

no

vantage

are;

Other Grants-—.

The

are

produced

This is not serious if it is possible

to

otherwise, to the Free World.

Details

total has been channeled to West¬

there

But

exchange.

the United States for which there

and

of

conserving

of

means

a

commodities

many

They

1945,

(Millions of Dollars)

SOURCE:

as

cient

grants

glorious days

Total

(and the "U. S.

competitive" markets) by foreign¬

30,

1,

more

could

better still of 1900, the

has- been the butt of many

and

new

Consumer research is
of business activity

part

believes
that
its
high and import pressure is ac¬ organization
cordingly strong. Second, and per— representative should have free¬
dom of action once in the field,
haps more important, attempts to
but
his
operations will be
capture larger shares of the U. S.

1955, the United States has given

agreements

something transitory.

led

of

hv

multilateral

of

reasons

particularly valid in account¬
ing for this situation. First, de¬
mand for American goods remains

uets.

salesman

American

.

outlets for

short in international markets. He

continual

,

are

of

the postwar world is abnormal and

replacement

that two

believed

the

sell

to

dollar

-most

being

pattern

The

richer.

becomes

This line of

is

It

sterling

abound;

would
be

international

lecture

a

delivered

disappear.

all

and the world
would be sharing bigger and big¬
would

the

belief

This

economy.

would

problems

permanent

a

immediately apparent, the Amer¬
icans will develop one by superior
sales and marketing techniques.
The world has too often- tended

he

this writer has

years

de¬
from

pend heavily on investment

Reasons for the
some

so?

other areas of the world to do

mental outlook.
For

in

close its dollar gap,

uhable to

our:

temperament

remains to be seen.)

why Europe, in spite of record
levels of economic activity, is un¬
able to balance its dollar accounts.
It can also be asked—if Europe is

productivity differential, superior sales and marketing tech¬
niques, use of native personnel in foreign operations, devel¬
oped research and widespread : business education, financial
and

(Whether this

of prosperity.

Suez

of

dollar gap, and
ponders what this may foretell for the future. Even if other
countries climb back to their pre-Suez levels in a short time,
Mr. Nielsen believes, they still will have to find ways to over¬
come our general marked comparative advantage
in interna¬
tional

em¬

ployment and output are at record
levels, and
the countries .con¬
cerned have been riding high on a
prosperity can survive the shock

of financial aid extended abroad,
here seven years, asks why, despite

years

Australian born economist

capacity,

full

at

operating

wave

buoyant conditions, Europe cannot close its

is

Thursday, January 17,
^

,..

(214)

stranglehold

on

the

mark

^

Number 5604

185

Volume

/The Commercial

.

.

and Financial Chronicle
(215)

the reorganizations

the time

by

completed.

,vere

know the younger members of
my
corporation, can cope with all the

Research and. Business 1

id

Administration,

routine

role of research has been

The

conferences, committee meetings $82 million in interest
payments
and>
planning groups 'because I falling due that month. The
ob¬

matters

non-routine

and

most

ject,

major

as

British
tion

a

At

currency.

is a reserve
briefly-touched upon; this is one
capacity of
mportant part of. the general pro¬ personnel in these big organiza¬
tions which gives a depth of
gram
of education . within the
qual¬
Jnited States which also con- ity possible only in a country rich
ributes to its .comparative
ad- enough to pay the sums necessary
/antage in international opera- to obtain the very best.
ions. This is purely a financial
advantage which the rest of the
Conscientious Application
vorld cannot hope to match/ The
Finally, there is the question of

to

the

notice

to save
international
time

same

Government

on

try

that

the

the

na¬

put

income

taxes

already the highest in the world
might be increased, and dollar
securities might have to be sold
to keep the
country solvent.

.

It didn't take
nomic

e

w

was

sterling

of the

while I'm away."

ones

in the Congress
for
granting such assistance,". *,.. <

Delafield Transferred

,

Government,

There

support

explained by the British

as

long for the

weakness

manifest

itself

of

eco¬

Britain

to

It

would be

foolish

indeed

to

To First Boston, N.Y.C.

suggest that the United States will
not

be

required

to

continue

to

Richard

bridge the dollar

gap far into the
future.
Even if the

foreseeable

other countries

their

pre-Suez

paratively

In

levels

dollar

in

a

a

in

the

Delafield,
The

First

transferred from its Pittsburgh of¬
fice to the

principal
fice

process.

to

ways

the

overcome

com¬

100

parative
advantage
in
interna¬
The
\mericans
believe that every the individual temperment and one month.
economies
of
tional economic relationships {hat
U
:hild should have the opportunity mental outlook of the people. The Britain and France and most of
is peculiar to the United States.
o go to a university if he so deAmericans firmly believe that it the other European nations
w
are,
ires it, arid considerable finan¬ pays to work hard and to be con¬
at; the best of times, in a very
cial assistance is made available scientious. This feeling, manifests delicate state of dollar balance. It
takes comparatively little in the
itself in a national
ti
o help achieve this. This is not
psychology of
c.

in other countries of the world.

university training is
to
the
favored
few,

often

Too

UI

•estricted

which usually means those

capa¬

ble of paying the high tuition fees.
Consequently there
are
m or e
Students studying in American

Oil

1

h

universities than there

it

in

are

ail

■Whose of the rest of the free world.
■
It is true that this system leads

n
ar

large degree of waste, but .it
ilso leads to the development of
0

.n

or!

a

highly trained people.
The significant fact is that a large
iroportion of these people are

tsu

of

core

1

grained in the comparatively new
^ftcience of business administration.
This is

peculiarly American

a.

development;. The
he

United

universities of

States,

supported

by

business enterprise,
developed business adminis-

merican
ave

ration

as

science. To elevate

a

libject to the status
hot

oes

necessarily

when

ut

acked

such*

then

ystem,

usiness schools

are

esrftHe best universities

strongest at
in the United

tates, and improvements
are
ontinually being made in reearch and teaching methods. The
esults of the universities' special-

reJgzati°n

are most apparent in the
business corporations of

eading
!

•,

the

nation; co-operation between

f businessmen

academicians is

and

automatic, because of the mutual
benefits- that
This

ensue.

is not true

of

Eurone

and

countries of the world that

have

come

British

under
and

the

influence

European

educa¬

tional

organizations.
To
them
business administration is a minor
leld
still

of

interest; the emphasis is
teaching of economics
sake" in the classical

own

radition.
teach

Some

a

5

Reserve

Capacity
The American

comparative ad -

vantage is also clearly marked in

aljlwhat might

be termed the "re-

capacity"
This

of

the

business

itself

expresses

in

\al financial

and personnel reserves.
al* Standard Oil
Company of Califor'nja, for example, maintains a high

degree, of
order

to

economic

arise.

fairs

less

financial

take

liquidity in
advantage of any

opportunity

that

may

This fortunate state of af¬
is denied to corporations in

favorable

situations

in

other

countries of the world.
But

who

writer

has

is

lived

in

United

In

ago.

States

several

of these

none

an

in

fact,

investment

Dodge

The

crisis

Suez

at

Other

was

Mr.

has
ex¬

President.

partners
E.

are

ated

of

the

Dodge

and

Richard

•

rope.'

■■■'.

:

■■■'■,

...<•• -

is

a

until

Yale

graduate of

of ■ Australia
.and
New
This means that closing the dol¬
Zealand.) The lesson is very clear.. lar gap must depend on American

Until

the

people

of

their

to

conscientious

for

tute

tasks

(not

other

these

nations realize there is
-

no

substi¬

application
automa¬

even

they cannot hope to lift
living standards anywhere

the American level.

All

of

adds up

the

to one thing—the Ameri¬
a marked comparative

advantage
in- their
commercial
and industrial life which expresses
itself

as a

cost advantage in inter¬

This is actually an

national trade.

extension

the

of

productivity

argument advanced by
Hicks,
and
it brings

Professor
to light

American

implicitly

advantages

-

once

close

The United States

more.

leaders

government
touch

who

/

with

in

are

international

He

of

Business

bility of this.
Automobile

Dec.

dinner

6,

in

New

joined Dodge & Cox

He

Boston's

Parrott

staff

has

Mass.— Donald
added

been

Coburn

of

&

to

B.

Nixon said:
:

'
.

An

.

which
of the
is

immediate

confronts

the

crisis

in

financial

us

as

the

problem
a

Middlebrook,

plight

East

oi

our

The New York

With Hanfahan Staff

is

in

our

interest

well

as

Slovin

M.

is

Mass.

now

—

Security Dealers

Dinner-

niversary

Gilbert

with Hanrahan

on

March

(Special to The Financial Chronicle)

/Special.to The Financial Chronicle)

KANSAS

theirs to assist them in this hour

J.

of

CITY,

ST. LOUIS, Mo.—Harry
Jr.

Mo. —Manley

land

Goodspeed, Jr. has joined Mid¬
Securities
Co.,
Inc.,
1016

has

become

Richter

Scherck,

North Fourth

the

is

inability

of

in

States

their

business

This announcement is neither

an

The

techniques. Only
part of this adavantage can be
allocated to financial superiority,

and management

NEW

ISSUE '

•' '

'

170,297 Shares

temperament and commercial at¬
titude of the population.
Of

course,

tnere are

exceptions
— there

Continental

this general doctrine

to

certain

in

of. these Shares,
'

•;

.

Copper 8i Steel Industries, Inc.

specific

Common Stock
(Par Value $2 per Share)

Company is offering to the holders of its outstanding Common Stock, Rights to subscribe
Stock at $11.50 per share for 170,297 shares at the rate of one share
for each ten shares held of record at the close of business on January 10, 1957. The offering to
The

for additional Common

stockholders will

expire at 3:30 P.M., Eastern Standard Time,

Subscription Price $11.50

nature.

Some nations are able to

the

any

'

■

remainder is the result of the

the

offer to sell nor a solicitation of an offer to buy
offer is made only by the Prospectus.,,

on

per

January 28, 1957.

Share

match

States in certain spe¬
industries
such
as
ship¬

United

cific

building.
tend
far

Others are able1 to

ex¬
efficiency sufficiently
ensure
adequate
dollar-

their
to

earnings.

Switzerland

and

Prior
Stock

to
at

and after the expiration of the Warrants, the Underwriters may offer shares of Common
the prices

and pursuant

to

the

terms

and conditions

set

forth in the Prospectus.

West

Germany are two such cases.

standard of living through Amer¬

does

credits.

more

capacity

important is the
of

personnel

that

they have re¬
capacity at high levels. A
vice-president can be dispatched
tb other parts of the United States,
or
abroad, to handle some urgent
development while his capable
appear

serve

ican

dollars received

as




conclusion,

undersigned

may

be obtained from the undersigned only in such States where the

legally offer these securities in compliance with the securities laws thereof.

grarits or

Allen 8C

should
still be any doubts that the dollar
shortage will not be a permanent
feature, let us ponder the conse¬
quence
of
the
recent
Britishsubordinates handle the routine French action in Suez. On Dec. 4
matters at the Head Office.
The —approximately one month after
president of one
of America's the invasion of Egypt—the British
the
United
leading electrical companies used Government asked
to say "... I can afford to go to Stales
to
waive
approximately
In

Copies of the Prospectus may

if

Company

there

P. W. Brooks. 8C Co.

Bernard Aronson SC Co.

Incorporated

Goodbody 8L Co,
January 14* 1957

Auchincloss, Parker 8C Redpath
Abraham & Co.

320

Street, members of

the Midwest Stock Exchange.

Baltimore Avenue.

methods

with

Company,

which

shortage

dollar

simply,

Simon,

affiliated

but never defined.
It
emphasizes the reason for the
very

at

Scherck, Richter Adds

Joins Midland Securities Co.

suspect,
chronic

1

the Biltmore Hotel.

& Co., Inc., 332 Main Street, mem¬
bers of the Boston Stock Exchange.

as

difficulty, and I am confident
there will be strong bipartisan

office

of sales.

Association will hold its 31st An¬

(Special to The Financial Chroniclf)

WORCESTER,

friends in Britain. I believe that
it

in charge

To Hold 31st Dinner

Incorporated, 75 Federal Street.

result

Near

was

Pittsburgh

New York Sec. Dealers

the

on

Richard

was

where he

transferred to

then

1950.

(Special to The Financial Chronicle)

Asso¬

York

Vice-President

1936, leaving for the corpo¬
Chicago office where he
until the latter part of

remained

First

BOSTON,

In his speech at the

Manufacturers

the

ration's

Admin¬

matters have realized the inevita¬

ciation

foregoing discussion

have

cans

aid

School

1954.

tries

se¬

throughout

remained in the New York office

Fee

istration.
in

dealers

Having joined The First Boston
Corporation in 1933, Mr. Delafield

With Coburn, Middlebrook

.

con¬

with

country.

University and the Harvard Grad¬

be rioted in the agricultural indus-

or

will be in

Delafield

M.

curities

26-

uate

quality

the

de¬
and

tact

Cox,
Peter

quantity of work isted previously between the
performed comparable with simi- " economies. of the United States
Iar
occupations 4in the" United and those of the rest of the world
States.
(Some exceptions should and, in particular, Western Eu¬
the

with

syndicate
partment

—

Morris

He

will be associ¬

Cox, Mills Tower, an¬
nounce
that Joseph M. Fee was
admitted to partnership Jan.
1,
year-old firm
Van Duyn A.

because of the heavy drain
its dollar resources to pay for

by

Coggeshall, Jr.,

The
firm of

management

o

James

&

1957.

is closed.

suggested that American cor¬
porations are overstaffed, but it

fr

is,

intensified the imbalance that

not

e

This

their

from the

FRANCISCO, Calif.

t

announce¬

ment made

Partnership

heavy purchases of Western Hem¬
isphere oil while the Suez Canal Avenali.

available within business corpora¬
tions in the United States.
It is

3C

stiffen

come

SAN

and

on.

But, it is repeated — these are
exceptions. The greater bulk of
the world is only able to meet
its commitments and maintain its

even

reserve

ir

to

only

States.

Britain

rope,

or

years

areas

need

can

;

true for the whole of Western Eu¬

an

commodities
has been mentioned earlier, and it
is
possible to regard American
agriculture as generally falling
into
the exception category.
It
has
been built up on what are
virtually perpetual subsidies and
seems
likely to remain a high
cost industry. But it can also be
argued that agriculture does not
lend
itself readily to
advanced
business techniques and is hardly
relevant, in a discussion of this

*

sector.

The

United

theoretical

a

subjects, but
marginal process and un¬

Financial and Personnel

Jr(i serve

not

will

economies

that

Fee to

up¬

"

.

dollars

France

to

pressure

always are. The foreign advantage

likely to lead to any far reaching
change of attitude.
__

The

pride in
thanf his

do

universities

"commercial"

this is

the

the

on

'for its

is

economic

other nations to match the United

other

of

more

Australia, New Zealand,
Chipa, Japan, the United King¬
dom and Europe before coming to

near

and

set this balance.

visted

of

The

works

with

This

Australian

resources

sure.

American

proposition.

their

improvement

and

world.

tion),

^tension is certain and

way of

accomplishments
counterparts in other areas of the

is

commerce

effort.

his

it.

fine academic

a

harder

and

ambition

average

improve

industry and

rid is welded to

The

elevation

an

by the total

imerican

a

of a science

for

reward

Broadway,

according

Dodge & Cox

;o

of¬
the

of

corporation in
New
York,

addition, they will still have to

find

ViceBoston

Corporation since 1948, has been

com¬

time, they will
large quantity of

debts

M.
of

President

climb back to

can

short

have incurred
new

approximately

—

19

.

Commercial and Financial

The
20

Chronicle

Thursday, January

...

17

1957

»

(216)

changes "providing
future growth to the extent
over 50,000
accounts and an

dent, sees the
for

of

,

He also indicated that
provision for extra hour limited
banking service is inherent in the
changes.
The overall plan was
conceived by James J. Rooney,
Senior Vice-President, and was

Bankers

and

ETC.

NEW OFFICERS,
REVISED

CAPITALIZATIONS

executed

Home

Company

Insurance

Com¬

Indemnity

Home

The

pany,

Black, President cf

E.

Kenneth
The
and

has been elected a director

of Chemical Corn Exchange Bank

it

of New York,

was

annonced

on

Harold H. Helm, Chair¬
Mr.. Black, who fills the

Jan. 14 by
man.

by
the recent
of Percy H. Johnston, is a
caused

vacancy

death

bank.

the

of

of

numerous

Helmer,
exclusively in bank
architecture. The additional floor
space
was obtained, Mr. Muller
said, by slimming 15 columns as
much as three-quarters of their
specialists

original size and by relocating or
combining several departments of

the

of

Vice-President

retiring

General Adjustment Bureau;
Society of New York;

tal;

Underwriters'

Vice-President

is

of

Foreign Insurance As¬
Corp.;
Vice-

American

Finance

sociation

Chairman of American

Atomic

of

member

Association;

Insurance

He

President of
elected
to the Advisory Board of Chemi¬
Exchange Bank

Corn

cal

of New

York for the Lower Midtown Area

of

according to an¬
by Harold H. Helm,

Manhattan,

nouncement

Chairman
lin

is

With

way,
is

a

of

headquarters^at 1440 Broad¬
New York, Cone Mills, Inc.,
wholly-owned subsidiary of

Cone Mills

Corp.
❖

Wallis
ers

since

❖

joined its senior
as
Administrative

has

management

Vice-President, it
Jan.

on

10,

Chairman

was

announced

S. J Sloan

by

the

of

industrial

Mr.

Board.

pension

plans, is a
graduate of Yale University. He
has

been

Bankers

Vice-President

a

Trust

Company

of

since

1944.

board

Atlantic
Jan.

10

$

of

I^ank
elected

Trust Company,

and

General

as

#

John

I;}

.

tee

s-:

.■

directors

of

:Js

of

New

James

-

of

York,
R.

the

bank.

tile

011

Brooks

sibilities of

Mr.

a

course

be

will

Jan.

be

is

credit

public.

general

It

as

a

financial institution

taxation and insurance,

lending, employee and
public relations, board and com¬
mittee meetings, etc.
Mr* Joyce
was previously Chief Clerk, Audi¬

is

78-year-old tex¬

manufacturing firm of Baxter,

tor,

Comptroller,

Vice-President

quarters are in New York City.
'

Treasurer,

of

the

and

River

East

Savings Bank. In addition to his
title
of >. Administrative

present
How

to

add

public floor

400

space

square

to

a

feet

of

bank and

enhance its beauty, without en¬
larging it and without interfering
with any banking business, was
recently demonstrated, it is indi¬

cated, in the
of

addition

the

5

East

42nd

Street

Emigrant Industrial

Bank

of

New

York.

In

Vice-President
is

Chairman

Committee.
President

He

of

Secretary, he

the

Personnel

also formerly
Savings Banks

on

Administrative

the

Savings B-mk* Association of

Procedure

of

*

*

The

Borst

YORK

Sept. 30, '55

$41,842,729 $40,931,327

38,154,522
6,913,568

5,831,789

secu-

17,446,074

17,898,228

13,624,243

1,435,928

1,422,261

profits—v>

YORK

NEW

Dec. 31, '56

Total

Sept. 26, '56
$3,424,602
$3,553,910

resources.

321,349

312,015

1,719,002

2,032,310

Deposits
Cash

and

from

due

banks
U.

S.

Govt,

rity

431,278

431,288

416,347

profits—

516,103

*

*

-

At

the

Jan.

the

Brooklyn, N. Y.,

the

14,

following

re-elected:

were

of

Kings County

Allen, President

Company;

*

meeting

Trust Company of

trustees

Hunter

Chester

of the

L.

appointment
an

Assistant

of

John

H.

Manager of

&

tour

nard,

Miller;

partner

a

Richard S. Mayin the New York

firm of Stillman,

O'Brien,

Co.; Michael
President of M.

O'Brien,

Inc.,

Maynard

The FIRST

C.

the

C.

&

Richmond

fill

been

has

of

elected to

created

Robert

C.

Kenneth

Realtors.

vacancy

retirement

NATIONAL CITY BANK

Cash

E.

by

the

Blum,

who will devote himself to public
service

'

activities.

Abraham

Anniversary Year

&

The

of

32,737,053

81,888.000
129,410.000

2,537,82 3

discounts

&

28,487,000

75,496,06 4
160,628,538

1,760,000

secu¬

holdings

Loans

$

from

due

__________

Govt,

Undivided

profits,.
$

❖

firm

York

&

Mr.

Straus,

Retail

Bank

N.

at the

Y.,

the

Grimes,

elected

was

Richmond

Chairman

authorized

West

of

Hempstead,

on

Jan. 8. In making

Augustus

announcement,

President of
the
said that, "for the past 22

B.
bank

Friedman

Mr.

the

into
customer

entry

of
that

in

this

he

will

know

greatly helpful as we continue
efforts toward expanded cus¬
community

and

tomer
At

have

general

relationship

We

closer

even

its

forms

new

service.

its

as

guiding

counsel,
many

be

bank

years,

firm

his

and

~

service."

meeting Jan. 8 in the West

a

told

bank,

the

stock¬

had

1956

that

holders

the

of

office

Weller

President

been

"year of substantial growth
development" for the bank.

President of

Harold J. Marshall,
National
New

Bank

of

Westchester at

Rochelle, N. Y., has an¬

nounced the election of

Gmelin

an

as

Mr.

bank.

William J.

Assistant

President and Trust

Vice-

Officer of the

Gmelin's election

took

regular meeting of
the Board, of Directors on Jan. 10.
He has been associated with the
bank since December of last year.

place

For

at

the

many

years

associated with
of the Chase
in New York

the Trust Department

Manhattan

of

Bank

Mr. Gmelin has specialized
operational and administrative
in that department. He re-

City,
in

work

Continued

an

DISTRIBUTORS

on

page

in

Corporate and

Municipal Securities

Municipal Bond
Department

,

Unlisted Trading Department....

Dealefs

through

our:

Syndicate Department...

,

Teletype NY 1-708
Head Office:
55 Wair

Street, New York

LEE HIGGINSON

75 Offices in
Greater New York
Member Federal Deposit Insurance
Corporation

CORPORATION

NEW YORK

BOSTON

CHICAGO

MEMBERS
New

Investment Banking Service Since 1848

■

a

and

UNDERWRITERS

Service to

a

annual stockholders

Weller,

Merchants, etc.

stockholders

of Cole,

Dietz,

tional

the Board of the New York State

Council

Our 145th

and

S.

rity

is Vice-President and Treasurer of

of New York

Dec. 31,'55

'263,701,803 239,162,000

banks
U.

Trust

Delatour,

member of the law firm of Dela¬
as

BANK

YORK

3i,'5G

289,325,666 259,721,000

resources

Deposits

Hempstead

annual

on

NEW

$
Total

:H

stockholders of the

held

NATIONAL

Dec.

our

secu¬

holdings.:

Undivided

iU

FREEPORT,

served
COMPANY,

TRUST

CORPORATION

TIIE

Stock Exchange




:

13,746,964

discounts.

&

\

•

rity holdings..:
Undivided

Department.

*

BROOK

meeting held

___

Govt,

Loans

36,912,879

from

due

and

banks

Loan

director of the Meadow Brook Na¬

Dec. 31. '56
resources

Deposits

A.

the State of New York,

OF

Friedman

COMPANY,

TRUST

NEW

U.. S.

0f

with!

been

Sidney Friedman, partner in the

UNDERWRITERS

Cash

and

MEADOW

New

was

the

Auditors and Comptrollers Forum
and Chairman, of the Committee

to

providng
increased
operating efficiency and improved
service, John T. Madden, Presi¬

and
of

THE

Trust Officer. ;

Total

Company

-has

*

Vice-President

Secretary;

required

which is de¬

Loader

curities

George K. Kern,
the bank's auditor, was elected an
Assistant Vice-President, and
Thomas
Purcell
was
named
as
and

President of

as

Trust

York.

1938, is active as

elected

was

of

re¬

Kings County Trust Company for 1
many years,
chiefly in the Se- f

loan officer and in new

dent,

Division.

American

Mr.

business
development for the bank.
Mr. Shanahan also announced
the additional executive changes:
Robert E. Rosenberg, Vice-Presi¬
a

the

More

Brooklyn

New

with Federa¬

been associated

of

charge

the

by

tion Bank since

Bank

cently, he served

York was announced
Thomas J. Shanahan,
President. I Mr. Sandleitner, who
has

the

the

New

23-25; 28-31.

mortgage

Trus¬

Baxter

well

as

of Trustees has
as

Rev.

will include functions and respon¬

Kelly & Faust, Inc., whose head¬

Savings
the

will

signed for the

York, announced oh Jan.

President of the

The

academic

No

T,

New

has

the

by

to attend the course,

Madden, President of
Emigrant Industrial Savings Bank
of

it

at

course

Counsel
Vice-President of that bank.
served

Studies

Fordham's
downtown
City Hall Division, 302 Broadway,
New York, beginning Jan. 29, at
5:15
p.m.
Registration for the

given

director of

a

was

East

O'Neill, S. J., Dean of

School.

the

City, from 1932 to 1953

New York

office
i't

The

He

1956.

the Hellenic Bank

and

a

Colt,

Dunckel, a leading figure in the
development and adminstration
of

been

Atlantic Bank since Janu¬

the

ary

Charles A.

1952.
director

February

to

has

elected John B. Baxter

*

Dunckel, with Bank¬
Company of New York

1923,

of

Souval

10 that the Board

B.

Trust

Mr.

the

of

of General

School

announced

been

Administration from

1948

October

Secretary

and

Fordham1 University,

of

1948,

of North Carolina.

native

a

Hef¬

Mr.

bank.

the

and re¬

functions

the

on

the

at

from May 1943 to
and the Economic

Department

Cooperation

Heflin,

today

of

Manhattan Company, in

daily newspaper.
: .;
*
*
*
%;%,!
The election of Joseph T. Sandleitner as a Vice-President of the
Federation Bank and Trust Com¬
guage

pany,

Woo

^

President

"Staats-Zeitung," German lan¬

with particular refer¬

River Savings Bank of New York,

of the U. S. Treasury

etc.

M.

dent

General Coun¬

the

with

was

sel's Office

October

Lewis

sonnel

1957.

January

to

1952

February

Energy Committee of the Insur¬
ance
Group meeting with AEC,

Cone Mills, Inc., has been

to

Executive Director

was

shares"^

mutual savings bank per¬

course

Mr.
sponsibilities of the management
of
of financial institutions is being
the Foreign Trade Administration
presented again by Charles C.
of
the Greek Government from
Joyce, Administrative Vice-Presi¬
Brooks

and

A
ence

#

:!s

#

City.

York

New

ciation,

etc,

bank.

the

Loan Asso¬

and

Savings

Federal

Insurance

Laboratories, i Inc.,

Bank;

Manhattan

Chase

-personal supervision of
Muller, President

Halsey, McCormack &

of

Michael
organizations.
He serves on the T. Courdjes, Vice-President of the
Atlantic Bank, and C. Harry Minboards of Atlantic Coast Line RR.
Co.; Beekman-Downtown Hospi¬ ners, President of the Bankers
officer

and

director

Waters Co. Inc., un¬

Lancken

Adolf

William Bischofberger,

York City;

the

der

contracting firm

by the

of Robert H.

Aristotle
Souval was named Chairman of
the Board.
Mr. Brooks was elected
a
director at the annual stock¬
holders' meeting on Jan. 9. Four
other directors were also elected:
C. Stewart Anderson, Vice-Presi¬
dent of Johnson & Higgins, New
President

in

deposits."

CONSOLIDATIONS
NEW BRANCHES

-

additional $125 million or more

News About Banks

of increase of 11,000 shares of capital
by stock and payment of a 10% stool!
Horace C. Flanigan, Chairman of
°"
Present
the Board. Mr. Borst received his
Bachelor of Science degree from
Chester A
Allen, President of
Hofstra College in 1950. The same
year : he
joined
Manufacturers Kings County Trust Company
Brooklyn, N. Y. announced
Trust Company's advertising and
the
election of William J.
Ahern anrt
publicity department. He attended
Harold W. Schaefer as
the Bankers School of Public Re¬
Vice-Presi
Mr.
lations conducted
by the N. Y. dents.
Schaefer,; who has
State
Bankers
Association ; at been with the bank for 30 years
will continue to serve as
Secre'
Syracuse University and at pres¬
ent
is
attending
the Graduate tary. C. A. Richard Loader was
elected as Assistant
School of Business Administration
Secretary
Mr. Ahern joined the Bank
at
N.
Y.
University.
Prior to
in
an
advisory capacity in March
joining the bank, Mr. Borst was
He
was
formerly Viceaffiliated
with
the
New York 1956.

Manufacturers Trust Company
New
York,
is
announced

.

Stock Exchanger
(Associate)

York, Boston and Midweit

American Stock Exchange

22

4

Volume

185

.

Number 5604

.

.

.

The Commercial

and Financial Chronicle

f

u

(217)

f

■

•

i-

r

'

'

<

I

»

jMgpft'v'

t

t

f

<

«

M

k

t-«

J

r

I-

'

♦

■

M

M

»

'

•

'

l>

Ml

-v. 4

.

*

6vwO0<,

-xWopfHWrtn^

Sfr.j-V ;'T*

SEE WHY

America acclaims
1957

PLYMOUTH

BELVEDERE

Four-door

Sport

Sedan

TLJ r

int
t

'

:

I

•

1957

DODGE

ROYAL

Lancer

Two-door

NEW SHAPE
V- :/

1957

'

See for
the

DESOTO

FIREFLITE

Two-door

Sportsman

w

yourself how

year's most dramatically

beautiful

styling

.

...

1957

CHRYSLER

NEW

YORKER

Two-door

hardtop

on

Plymouth, Dodge, DeSoto,

Chrysler and Imperial
is

new

of

leadership from

evidence

CHRYSLER



1957

IMPERIAL

CROWN

Two-door

Southhampton

CORPORATION >- THE FORWARD LOOK

(.

<!The Commerciatand>Financial Chronicle

•

.

.^:f

Thursday^January 17,195,7

,

(218)
Essex-Caldwell

West

Continued from page

20

...

At

News About Banks and Bankers
tired

recently

Chase

of

Officer

Personal

as

Representing
Granite

the

Trust

issued

as

of

of

Granite

12

of

by the U. S.
Currency

National

Quincy, with

of

Company

the

for

Bank

working for National State Bank

a

with

the

Dec.

ness on

A

profit

10.2%

of

been

opening

.»
IS

paid

to

payment

1956

salaries

the

staff

Worcester County Trust
of

Worcester,

(

v

sharing

their

»

of
has

the

of

Company

Mass.,

according to
by Edward L.
Clifford, President.
The
profit
sharing distribution is made each
an

announcement

employees

pleted

full

two

have

who
years

ciello,

com¬

in

service.

of

in

State

in the middle of January to

year

all

of 17 and has just com¬
been

has

He

with

1926

the

Merchants

old

pated

John P.

compared

amounted

with

year's
to

292

a

year

p aym en

8.3%

State

t

annual

of

Williams,
National
W.

Howard

to National
acquisition of

Bank

in

operation for three years. Accord¬
ing to the terms of the plan, one-

fice

the

of

Essex-Caldwell' Of¬

West

in

1955;

named

Apgar, was
in charge

Vice-President
bank's

Bank;

came

through. the

Lincoln

salaries. Worcester County Trust's
Profit Sharing Plan has been in

a

1946; Carmen N. Panhis banking career

and Manufacturers National

Last

Caldwell,

N.

J.;

John

S.

Vice-

half is distributed in cash and the

Throckmorton

other half is placed in a trust fund

President and William J. MacCal-

administered

lum

by the bank's Trust

Department.

was

Messrs.
t:

$

the

organization meeting

Apgar Throckmorton and
former

were

Citizens

the

of

Trust

10, the following appoint¬

made:

George Guion Pike was elected an
Vice-President. He-en--

nn<5itinn<?

from

messenger-

and
Assistant Cashier". Gordon B.
Head Teller,

teller

clerk

to

Mink

officers

became

He

branch

of that

'

'

lending limit of about $4,400,000.
The combined bank will be_ thefourth largest, it is stated,, in Philadelphia and the sixth largest in

Tan

the

At

Company

will continue to

National

of

Bank

Caldwell

be located

&

and

at the

YEAR-END

the

bank

The

000.

caDital istock
Cdpiidi

the
uil

$30,000

as

paid

be

to

dividend

of Jan.

as

Currency.

_

capitai

the
will

The

then

$5

Total

consist

of

186,000

value

banks

bad

$1,850,000;

debts

153.58,

and

will

from

the

un-

divided

amount

profits

for

reserves

to

$750,-

toal capital, surplus,

a

and

un-

*

boards

pany

of

DU

PONT

BUILDING

Bell Teletype NY 1-124849
PHILADELPHIA NATL BANK BUILDING

WILMINGTON, DEL
44 WHITNEY AVE.

NEW HAVEN, CONN.

WALDMANNSTRASSE

ZURICH,

SWITZERLAND

io

will

SALEM, N. J.

tne

of

approval

e^ch

'

Com10

Each

and

company

Provident

receive
of

of stock-

of

regulatory authori-

necessary

ties.

and

160 W. BROADWAY
_

the

shares

PHILADELPHIA, PA.
10

__

to a"y
to $3,500,000;

' 2,571,654
•«»...

.

_

4.391.773

shareholder

and

one

the

one-fourth

combined

company

each Tradesmens shareholder

will receive

share of the

one

shareholders will have the

plan
The

Union

Bank

figb^ to subscribe for new shares

Commerce

of

of Cleveland, Ohio, is
becoming, simply, the Union ComCleveland

Stockholders of

banking

institution

r,atl? ot, °?f S
?
shares held as of Jan. 16.
been made

in the
seven

Company

Bank.

J "grease
subscription

The

of the new stock \yill -be set

price

15,408^973 13,28i',27 r at tbe annual meeting. Under the

T

,

com-

bined company.

This allocation pf
shares, it is stated, is in substantially the same ratio as the asset
value of the shares

of

tution

so

beaded by McDonald & Company

they

re-elected

of Cleveland to purchase any un¬

the 21 directors for the

customary

Jan.

9,

which

at

Thompson

meeting

Chairman

terms.

one-year

k.

annual

told

-

John

shareholders

subscribe<? shares at the estabilsbed prlce> N^rrehco.d?' 1 +h®
stated were established by the

name

bank last, year with total assets

"is

195a, an increase oi zz ^
board of directors tne cut
month, viz on Jan. 10, dec ai

The Union Commerce, exclusively
a commercial bank for many
years
after its formation in 4938, offers

m

nvities

to include

branch

its

the shares presently outstanding,

ac-

Payable Feb. 1, to holders of iecord dan' 16
exp^c^e^'. s., 3 jc
*°. future earnings, that dividei ^
will be continued o.n the increas,

banking

offices in all principal sections of
Greater
Cleveland.
By another
action

taken

authorized

Jan.

.

9, stockholders

number pf shares at' not Jess
tbe current rate,

holding

their annual
meeting in the future on the third
Thursday,

instead

of

the

second

material

The: Huntington

f 'C!r

for

use
at the meeting,
concerning results of the

National Bank

b<¥der®

;

<

*

*

*

Wednesday, of January. This will
give the bank's staff more time to
-prepare

31.

insti-

each

year

just ended.

Stockholders also

nHk

roil

capjt^l stock rights to sub-

mon

is

being given to their respective
adjusted book values based on

present day appraisals.

The

parative

per

1956

of the two

earnings

institutions

substantially the

GARTMAN, ROSE

& CO.

the

combined

Provident
MEMBERS

NEW

YORK

STOCK

Trust

EXCHANGE

fice
MEMBERS

AMERICAN

STOCK

EXCHANGE

(ASSOCIATE)

nut

The

Tradesmens

as

will

Bank

be

at

Broad

DEALERS

DISTRIBUTORS

and

Corporate and Municipal Securities

of

be
and

Company and the main

will

the

name

company

UNDERWRITERS

also in

are

ratio

same

allocation of shares.

com¬

share

of¬

Chest¬

Active

Markets

in

Local

Securities

Streets.

Principal

officers

of

the

com¬

bined company will be: James M.

Large,

Chairman

William

R.

K.

of

the

Board;

Mitchell,

Vice-

Chairman of the Board and Chair-'

man. 0]^ Jbe Executive Committee;
Benjamin

F.

ONE WALL STREET

NEW YORK 5,

N. Y.

tive




WHITEHALL

TELETYPE

NY

3-8200

1-2122

Woodring, Execu¬

new

The

bank

merger

18 offices

in

Philadelphia, Delaware and
Montgomery Counties. Based on
Dec. 31 figures, the
merger of the
two

Mead, Miller

President:
—

Vice-President.

will give the
TELEPHONE

Sawin,

and Warren H.

institutions, it is stated/would

New

York

Stock

Members

Exchange

American

Philadelphia-Baltimore

&

Stock

Stock

Exchange

Ball System

*

(Associate)

Exchange

CHARLES & CHASE STREETS,-BALTIMORE
Telephones: Baltimore—LExington 9-0210

Go.

—

1, MD.

New York—WHitehall 3-4000

Teletype—BA 270

result in

total resources of
$527,deposits of $465,018,000;
capital funds of $53,571,000,

189,000,
and

represented

by

capital

and

sur-

Direct Private ff ire

to

y

<
Quarterly dividend of 45 cents on

Consideration

Dec.

on

■

Arrangements nave
™ltb a. gr®uP of.

the

on

their

at

I

N. Y.

advance lrom $«50,uuu,uuu to $ad,-

banking

holders

Com-

nnn nnn

in the interest of

of

Jan.

on

4on

simplicity, which'£facbing apeav
•
a
is desirable in view of the broad- p«cr 31 aiid n^t earnmgs^a va ening of the base of the bank." mg to $3.50 per s aie+. 00L *T'h^

o r s

Trust

Philadelphia

Caf

^,uuu,uuu. com
V

that modification of the

%
t

r e c

Provident

and

b*ned

Dec; 31, *56

will in-

cumins bv $3 000 000

cieasc surplus oy

/

*,

of'd i

undivided profits,

prpasp

pa.

Exchanges

120 BROADWAY, NEW YORK 5,

meeting

The sale of the addi-

lor

reserves

of $3,630,153.58.

debts

■

Lo^'

to

increased

profits

suojeci

Telephone BArclay 7-3500

2,688,893

;sercu-

undivided profits--

voted

pany

I

the annual

at

Jan. 22,

on

trust

4,675.447

being

Tradesmens Bank and Trust Com-

Stock

bank

toe

been

$27,330,809 $^4,4<o,38i

resources..,—

merce

par

request

American

the

000,000 and the legal lending limit

stock divi-

by the

capital structure of the

of

The

and

10,

Cleveland, Ohio,'approved a
recommendation to sell 125,000
additional shares of capital stock
as announced by President Loring
L. Gelbach. The plan is subject to
approval by the shareholders of

increase

After tne

^

divided

Laird, Bissell & Meeds

Jan.

on

of

from

and

Dec. 31/*56

.

,

efieritivegU- S. Govt.

becomes

;!l

on

meeting

a

directors of Central National Bank

share of

one

31, 1957 subject to the
of the Comptroller of

approval
the

to

divi-

stock

a

the basis of

on

stock

bad

Will be sent

has

Pittsburgh,

company,

$1,800,000

Bank Stocks

Kline

brookline .savings

to $930,-

$900,000

shareholders

the

dead

of
ul

.

from

totaling
$930,000 and the surplus is simul-

City

*
At,

'Toms- «*'.

Bank -of

taneously

16 New York

scheduled their annual
organizational meeting, for customary re-election of the bank's
officers.

rectors

Thd

of

shareholders

increase
mcxtdbu

to
io

shares

COMPARISON & ANALYSIS of

C>

and

_

bank

York

bank's main- office at Euclid

It .is also announced that

JLawrence

and

East Ninth, Union Commerce di-

,

terests.

-

ot the Onio corporation law";

to facilitate generally the banks
corporate procedure. After the
stockholders' session, held at the

a

meeting

annual

8

National

First

dend

New

others under circumstances
permitted by a 195o amendment
and
-

e!ec'ed
Jhe Board of -Directors tional shares, plus transfers from
Second -National Bank. Mr. undivided profi s, will increase
River, the shareholders voted to Kme
is President of Wi ham combined capital and surplus by
reduce the par value of the shares
Penn Laundry lnc„ as well as $5,000,000 The increase in capital
of common capital stock from $10
Klines L'la •
stock will be $2,000,000 resulting
to $5 each by the issuance of two 'Semckand ls Vice
lesdentand from.the sale of 125,000 shaies
shares of $a par value fop'eaclr » member of the Executive Com- with a par value of $16.-Addishare of $10 par value outstand™lU^e and board of directors of tional proceeds from the sale oi
log. The shareholders also voted' the Lmen 9«PPly Association..
the stock, together with transfers
the

of

also

in

Members

damnification of directors, officers

be declared initially at the annual
rate of $2.32 per share.

"

is

"to conform to, recent changes"
in Ohio statutory law; to eliminate
obsolete provisions in the bank's
regulations; to provide for "in-^

Pennsylvania

_

the

The

etiect, Mr. Thompson reported

Assistant

elected1 an

was

Vice-President

tne

OUR

fol-

the

8

were

stock for each 30 shares held.

of

State Bank of Newark, N. J., held

Jan.

named

rt

the board of directors of National

on

was

named Assistant Cashier.

MacCallum
At

Bank of Toms

Jan

on

the new institution a greater

r^jve

Assistant

began

This year, 300 individuals partici¬

ago.

with

service

of

pleted 30 years
that institution.

busi¬

of

12..
*

r./

* J
*
The Second National Bank of
Philadelphia has appointed Regisenior
officer of
the bank
for member of The First
National nald J. Doherty to its board of dimany years.
Mr. Keith came to Bank organization at the time of rectors. Mr. Doherty is. General
the bank in 1940.
In recent years the consolidation
of the
Ocean Manager of Sears, Roebuck and
he has been a senior credit officer County Trust Company and The
Co. Philadelphia retail stores. He
with the bank.
First
National
Bank
oi
Toms' previously-served as Retail Field
1944.
Mr. Mink Manager covering five states surThe following were at the same River, N. J. in
formerly Assistant Cashier rounding Pennsylvania.
He has
time named Assistant Cashiers of was
the bank: Roger R. Rhodes came and Manager of the Ocean Beach 'been associated with Sears, Roefor over 16 years and is
with the bank in 1936; Karl R. Branch, and he is now an Assist-/buck
Farnow
started
with
National ant Vice-President and Manager .identified with other business inat the age

The change was scheduled to take
effect

J

nromotions

lowing

began

Rice

Mr.

bank.

the

with

of

capital of $1,000,surplus of $2,299,299.87.

000, and

plus of $43,789,100 arid undivided, approved minor changes in
profits of $9,782,000. . This would bank's "code of regulations.

of

.

.

The new trust department willshow personal trust
Keith and M. Wilfred Rice were tered the employ of The First Naassets over
000,000,000 at marN J.
ket values.
Wnen and if the
named Executive Vice-Presidents. tinnal Rank nf Toms River
merger is declared effective, it is
Mr. Kugelmann began his banking as a messanger in 1916 and has
since
been
career in Newark in 1911 and this
continuously in/the estimated that regular dividends
employ in the bank
He has filled on the st°Pk of the new bank wl11
year marks his 25th anniversary

charter has been

a

Dec.

Comptroller
the

conversion

*

Natfonal

N

River

J.

Frederick

made:

were

a

meeting of the Directors of

a

The First

Kugelmann was appointed Senior
Vice-Presideiit
and
William
H.

*

a

■Quincy, Mass.,

ments

Trust

Manhattan.

*

Office

„

National State Bank.

l\eiv York

Correspondent

Carl M. Loeb, Rhoades & Co.

185

Volume

Numberf 5604 i

-

The Cotitiiercml aild Financial ChroriicU

v

.

■■n

(219)
for

scribe

additional

an

AMERICAN

50,000

non

;40

share.

per

Shareholders

of

•ecord on Jan. 8 will be permitted
o

subscribe for

shares held,

>aeh four

warrants

cription

The

23.

ran,

by

written

& Curtis.

on

Deposits
Cash

U.

rity

one

new

share

on

for

the

—was

each

subscription

offer-

1905

l.

and

in

barter

resent

name.

paid

een

of

ach

urrent

on

the

under

Dividends

>

lie

to

be

paid

in

ft

tjS

■

THE

DOLLAR

COMPANY,

SAVINGS

v

' "

resources—

sposits
ish

due

$

&

secu-

discounts!

ndivided

profits—

-years "

"Double
little

$2,500.
of

Dollar"

account

without

$5

as

open

to

for

examination,

..

Mr.

Dollar"

"Double

irfains

in

reaches

effect

the

age

Vail

Du

until

of

the

i

'

may

17,179,173

.

surance

:

.

38,145,356
• l,13o,849

convert

55,

ination

his

a

medical

insurance

Leo

as

Snearer

from

Hurt,

William

R.

,

Mr.

been

bank

was

of

Newly elected

Hogan,

Loverd

Henry

aug¬

18

James

Frank

Spencer

Voysey

with

since 1947.
York Stock

Kidder,
He is

a

Peabody since

the firm

1932

and

has

been

controller

member of the accounting division of the Nev/

Exchange.

since

Kidder, Peabody's Boston office, has been with

1930.

.

new

Mr.

As¬

were:

Ander-

A.

W.

Loverd, located in the firm's New York City office, hars

Mr. Spencer, of

Cashiers—John A.

T.

N.

Voysey, of the firm's Chicago office, joined Kidder, Pea¬

body in the Boston office in 1932.
sales manager of the

In 1950 he left Boston to become

Chicago office.

Hurley,

Charles B. Nevins, Tom M. Plank,
Clarke C. Stayman, Jr., James G.

Sutton,

Howard

William E.

re-

Officers

L.

Visteen

Howard

LaRocco

B.

.

Underwriters and Distributors

Bouton,
Olin Mc-

and

Reynolds;* Assistant
Robert

and

Vojta; Assistant Trust

—

Joseph J.

he

Attorney

—

Corporate

and

G.

Appel; .and Assistant
Auditors—Robert V. Gnapp and
Roy E. Johnson.

32,211,445

Paul

to $500 or more.

9io,oi.2

William N. Loverd,

are:

Vice-

lik, Raymond V. Dieball, R. Garth
Dunn, Jr., Alexander H. Glover,

a

exam-

They

Burnham

Trust

staff of the

sistant

amounts

Waid

and

oiricers.

to ordinary life in¬

without

if

A.

i

a

saver

when

Assistant

mented by the election

said.

feature

to

Richard * Wilking,.
Officers.
August J.

The

physical

a

January 15.

on

Depart¬

elected Auditor.

Anyone under

age',: may

Bond

Vanderpoel,
Officer,
were
Officers, and J. Carl
Sommer,. Assistant Auditor, was

receive

amounted

The

TRUST

rftyThoidings_zr_r~48,561,593- 51,316,322
)ans

of

H;

taries,

97,392,872

*•

*.

18,875,625

Govt,

55

116,231,831 103,579,890

from

banks
S.

balance

Dec. 30, '55
**
' " $

103,411,061

and

if the; account

announced

Vice-Presidents,

elected Trust

Dollar"

would

was

Henry W. Spencer and Frank E. Voysey.

Jr., John R. Magill, jr. and Graydon C. Nauman, Assistant Secre¬

upon

$5,000 if the account contained

new

OHIO

*

jtal

the "Double

of

Survivors

•

it

and other principal stock

general partners to the firm,

new

new

Heymann, at¬

the

were:

Assistant

dollar

Stock Exchange

exchanges, has admitted three

Thomson, Jr.,.from Assist-,

Trust

explained.

$300 In savings and interest, and

April,

AND

Dec. 31, '56
»

Vail

ac-r.

.

YOUNGSTOWN,

•

Du

additional

death

$690

year.

ft

*

in the

money

the

of

Cashiers; Gordon T.

and

of
.

to

to $2,500 will be matched

an

saver.

of stock will, participate in

ividends

•

the

an-annual

uly and October of this

Mr.

up

with

have

100,000

amount

paid,

the

.

The

now

equal

in

bers of the New York

vin

stated, in Chicago

insurance

Livingston,

election
L.

Kidder, Peabody & Co., 17 Wall Street, New. York ,City, mem¬

of
was

Converse, William T. Dwver, AlC. Johnson, William J. Korsvik, Nelson L. Kramer, Edgar M.
McKinstery, Paul H, Miller and

The

Every dollar saved," plus interest

the bank's stock, in
past 44 years.
The

$1.80.

life

of

Presiaents

apt

count,

quarterly rate is 45 cents

of

iares

?

>

Chi¬

program,

J.

promotions

Robert

Promoted

19, President Ken¬

Dollar''

Kidder, Peabody Admits 3 General Partners

elected- Vice-Presidents.

were

Mer¬

of

James.

the

national

a

year,

share, ~ indicating

er

!

granted

that

the

meeting

announcement

Assistant

ment,

survivors

by

Vali announced.

Du

annual

Homer

Bergquist,

a

for.

of

National

tached to Division B in the Com¬
mercial Department, and P. Alden

provides

efship in 1866, was incorporated
i

K.

by

only at the Merchandise; National,

part-

as a

390,071

Bank

First

Chicago held Jan. 8, fol¬

officers.

ft

indicated, doubles

available, it is

stock dividend, consists
300,000 shares of $20 p$r cornon
capital stock; surplus, $7,)0,000;;» undivided
profits,; $1
3,459.
Huntington National
ank which was-formed

476,645
v

Dec.

"Douole

and

g

8,914,146

National

on

neth

Dec. 31, last, adjusted

the

reflect

cago,

The

official staff and

10,096,276

inaugurated

chandise

held, in effect, a 20%
rock dividend.
Capitalization of
)

9,716,246
9,231,092

depositor's' balance

ive shares

on

is

of

the

made

5,709,014

incentive savings plan—

it

meeting of the board

of

President,, of

discounts.;

new

Bank

stockholders,

secu¬

ft

A

23,590,288

.

6,341,419

hoiuirigs—;

which

the

lowing

\

from

—^

&

At

directors
Dec. 31, '55,

$26,308,260 $25,494,58.)

jUnciivided profits—

Upon completion of

istributed to shareholders

bank

due

Govt,

Loans

offering, an additional 50,000
ommon
capital shares will be

e

S.

on

group

COMPANY,
INDIANA

——24,267,097

and

banks

he

asis of

resources—

under¬

is

investment

an

sub-

expiring

offering

Total

Paine, Webber, Jack-

by

leaded

with

Bk.Ni),

Dec. 31; '56

share for

one new

TRUST

SOUTH

of its. $20 par value comcapital stock at a price of

shares

H.

Miller, Assistant Vice-

President,

will

be

"Women's

the

in

charge

Banking

Municipal Securities

Specialists in

of'

Depart¬
■

succeeding ' Vernard S.
on pension at

ment,

Higby who retired
the

in

Bank

Dec.
of

Street, New York 5, N. Y.

of

BOSTON

and other

and

Exchange

LOS ANGELES

principal Stock

v

Commodity Exchanges

$300,000 in

Chicago,

III.,

has

stock,

new

effective

brought

McJ)onnell & Qo.
Established 1905

the

to $2,300,000 from $2,-

up

ft

ft

At

the

i-

the

National

Central

Members
New York

000,000.

120

&

annual

Stock

meeting

of

Exchange

—

American Stock Exchange

Broadway, New York 5, N. Y.

La

<

SAN FRANCISCO

NEW HAVEN

_

of

the

PHILADELPHIA

Members New York Slock

i

♦

21, by the sale of that amount

capital

CHICAGO

Rights and "When Issued" Securities

.

increase

An

40 Wall

end.

year

capital

White, Weld & Co.

National

Salle

stockholders,

of

Bank

Jan.

on

Chandler,

Officer

Chicago,

York

—

Detroit

—

Asbury

Park

—

Chicago

Chief

and
of

New

Marvin

8,

President

Executive

HAGERSTOWN

Northern

MINNEAPOLIS

Illinois
WINCHESTER

FOREIGN OFFICES

LONDON

•

ZURICH

•

CARACAS

•

HONG KONG

Co.

Gas

elected

was

PROVIDENCE

a

of

Aurora,

was

111.,

director. All former

directors, other than
re-elected.

were

Willis Gale,

Mr.

Chandler

elected President of Northern

UNDERWRITERS, BROKERS

and DEALERS

Illinois Gas Co.in November 1954.
Prior

his association

to

Mr, Chandler

company,

President

Inc.,

of

Reis

City.

York

New

&

with that

DEALERS

DISTRIBUTORS

Chandler,

is

He

a

Vice-President

former

Federation

National

of

of

*

*

TRUST

*

ILLINOIS

CONTINENTAL

COMPANY,

Securities

Dec.

BANK

Deposits

June 30, '56

2,622,954.574

R. S. Dickson & Company

S.

U.

2.496,971,565 2,359,987,256

—

671,049,561

W. E. HUTTON & CO.
Members New York Stock Exchange

holdgs.

731,057,258

717,737,568

discts.

1,166,841,545

1,055,740.479

and other

641,420,017

banks—
Govt,

curity
Loans

$

due

and

from

&

ILL.

31, "56

2,769,263,134

resources.

Cash

1919

since 1886

'

j

NAT'L

CHICAGO,

$
Total

the

Financial

Societies.

Analyst

Established

CORPORATE and MUNICIPAL SECURITIES

Society of Security Analysts and
a

Corporate and Municipal

distributing

Vice-

was

former President of the New York

UNDERWRITERS

&

leading exchanges

se¬

NEW YORK

CINCINNATI

INCORPORATED
Undiv.

21,117,750'

profits—

13,056,756

I

Members

Midwest Stock

O

Exchange

veteran

Two

CHARLOTTE

.

NEW

CHICAGO

YORK

Greenville

Asheville

Raleigh

Richmond

Jan.

Wire




to

0

officers

of

First

1, under the bank's pen¬

sion plan after a
of service

Direct

0

National Bank in St. Louis retired
on

Atlanta

23

all Offices

;

-

Baltimore

Columbus, O.

Boston

Dayton, O.

Hartford, Conn.

Easton, Pa.

Lewiston, Me.

total of 88 years

according to William A.

McDonnell,

Philadelphia
Burlington, Vt.

President.

Continued

on

The
page

two

24

Lexington, Ky.

Biddeford, Me.

Portland, Me.

Commercial and Financial Chronitle

The
24

Continued

351,599,638 347,251,848

Louis. His grand¬
D. Bascom, was
elected to the board of, directors
in
1905.
Joseph H. Bascom has
been
associated
with the firm
since 1940.
Mr. Caulk is Execu¬
tive Vice-President of the Hussmann
Refrigerator
Co.
in St.
Louis.
A graduate of Princeton
University in 1935, he has been

326,754,201 324,281,581

affiliated

Rope Co. in St.

from page 23

Irving W. Lonergan, Cashier,
who has been with First National
are:

1957

and its predecessor

DETROIT, MICH.

institution, the

Louis

F. Ryan,

with

National

six

which

Bank

S.

U.

Govt,

669,090,366

Undivid.

was

752,785.314

685,293,711

curity lioldgs.
'& discts.

Loans

619,825.667
14,861,693

18,022,978

profits

*

into First National Bank
in 1919. He served as manager of

Total

Cash

his

S.

U.

Mr. Ryan started

banks--

&

October,

Assistant

1952,

he

the department.

669,090,366

722,286,016

685,293,711

of the First

National

He has held

numerous

is Past Preident

the

Association

St.

of

annual

the

stockholders

to

the

on

Jan.

meeting
10,

of

accord¬

announcement by David

an

the board,

succeeds his father,
the late Charles E. Bascom, Board

on

ings

elected

were

Calhoun, Jr., President of the
company.
Mr. Bascom, the third
generation in his family to *rve

Sav¬

Louis

Banks.

$33,860,292

32,087,129

32,131,687

8,715,693

7,780,021

9,969,160

12,489,004

11,833,616

9,513,926

324,051

391,336

—

and

Cash

field for which
it

from

due

banks

Govt,

S.

U.

Loans

Chairman of Broderick & Bascom

profits—

of

000

of

Bank

000,000
'

.j.

*

Coleman

elected

known

effective

Worth

*

■

|

,

i,,H|

1

.

,

National

of

The

Bank

was

Fort

in

meeting of the
of

At

three

the bank's

year of

directors,

first

the

nine

employees

officers

were

pro¬

in

Vice-President,
Comptroller;

vated

was

to

B.

Miller, former Cashier, was made
Auditor; and Sam P. Beaty, As¬

as

a

to

whole

record" atUeast v 10%

This

the

is

second

new

a

1955

above

of

rate

a

set

expansion, for
running, that is

year

Members

New

York

25 BROAD

Stock

Exchange

&
and.

Other

Exchanges

{

STREET, NEW YORK 4, N. Y.

—by public bodies and by private
industries

capital

and

individuals,

equipment

and

for

consumer

Telephone: IIAnover 2-0600

Teletype: N.Y. 1-210

.

erally

gineer.

Gordon Scarborough
Trust
Auditor,

was

appointed
Luther

and

E.

Ballengee and Marion
H. Elliott was appointed Assistant

Washington

Baltimore

LONDON

GENEVA

Hollywood, Fla.

*

The

AMSTERDAM

Correspondents: HAVANA, CUBA

*

City

Wichita

capital

remarkable gains, and all regions
and occupations have shared gen¬

Washington, Baltimore, Miami Beach, Hollywood

the

National

Falls,

bined with
to

carry

Bank

in

Texas,

reported a
of Dec. 20 of $l,500,00u

as

stock

dividend

of

that

amount while the further increase

of

$108,500
new

yielded

was

by

the

stock.
•t.

:|s

jobs

L.

California

Cal.,

President

of

Los

announced

of

mergers

Antelope

with

Bank

of

Lancaster,

California

Bank.

GARVIN, BANTEL & CO.
MEMBERS NEW YORK STOCK
MEMBERS

EXCHANGE

AMERICAN

STOCK

A.

C.

The

SERVICING

TELEPHONE
BARCLAY




the

YORK

been

the

Hasenjaeger,|

of

and

Executive

Bank

of

Commercial

TELETYPE
NY

1-17

California Bank
item

bearing

offices
on

mergers

SSSSSSSBSSSSESSS

5aHS3253EK2k<

appeared

Nov.

page

22,

one

in

2201.

our

58.

of

An

the

this
The

result1 of

inevitable

been] that
being bid up an'$,t>in
—

has

when fhe rise-hfi

product in dollar
reflected Sa corresponding

it$||ns
ex&ig-1

physical output, a consid¬

sion of

year's increase
represented i
Shadow
of
inflation rather
the substance of real growth.

erable part of last
the
than

detailed

More

has

value

dollar

in

evidence

of this

emergent inflation can be seen in
the
official price indices. After

equivalent
months. Not
all aspects of these trends have
been
unwelcome.
An important
with

suit

followed

rise in the

an

past seven

contributing factor to the

general

of prices has been the
strength in. farm prices* which;
have recovered part of the decline
upturn

suffered

the

over

ButV^there

preceding four
are

indications

ac¬

economy

has

their

operating full

final

raw j
work^
way through to the prices of
products.
There have also

been

signs

that,

in

most

some

out

and

time been
under

pronounced increases

fields

stress.

To

*An

**S

address

by Mr. Ball

139th

Montreal, Canada.

Annual

to

prices of some

of advances ' in

materials

have

that

yet to

some

stockhold-

Meeting

in

Continued

on

We Have An Interest In

RIEGEL TEXTILE CORP.,
RIEGEL TEXTILE CORP.,

PFD.
COM.

Inquiries Invited

Ingalls & Snyder
Members

New

Members

York

American

100 BROADWAY

Stock

Exchange
Exchange

NEW YORK 5,

issue of
COrtlandt 7-6800

Stock

—

Bell

System Teletype

in con¬

equipment costs re-

struction and

National

to

and

of

It is clear from these and other

Vice-Presidents of
Angeles bank. The addi¬

The

Bank, brings the total number of

7-6440

are

years.

/

named

Bank, with three offices in Santa
Ana,
and the
Antelope Valley

5

—

conditioiis

C.

Los

tion

BROADWAY

NEW

close

of Santa Ana, and
Gauger, President of
Antelope Valley Bank, have

Harry

LOANS

goods

appetite of
of ours.

the; avid

fying

-

short of satis¬

two

Vice-President of The Commercial

BANKS, BROKERS & DEALERS
120

the

Hasenjaeger, President
J.

National

COLLATERAL

at

of

supply

business Jan. llj-Mr. King stated.
Lee

EXCHANGE

effective

available1

services has fallen

Cal.,

mergers were approved by share¬
holders of the three banks and
became

fill

to

Angeles,

the

of The Commercial National Bank
of Santa Ana, and the

Valley

are

.

tivity, the Canadian

!>:

King,

Bank

has

than

force, there

which there

.people

many areas in

more

for
Frank

NEY

expanding employment

them.

sale of

par¬

the flow of personal in¬

entrants into the labor
are

—

solid
gains I
output, the

the

achieved in Canadian

commu¬

to
new
highwater marks.
despite a reduction in unem¬
ployment to very lbw levels and
an
unusually large number of new

increased from $1,265,000. Part of
the increase
$126,500 — resulted
a

In

agricultural

Yet

♦

augmenting

j

remaining; virtually
stable for
nity has enjoyed a long-awaited several years, the general level of
wholesale
prices, has
risen by I
improvement. Corporate earnings
about 3% in the past 12 months]
have
been
enhanced
and
rising
and the consumer price index has
wage and salary rates have com¬
ticular,

from

Direct Wire Service: New York,

less than from domestic

come

Cashiers.

Miami Beach

strong demand from

in this expansion.

pre¬

heavily'

imports

national

fronts

all

no

Vice-President and Petroleum En¬

with

even

contrast to ,1955

export

made Assistant

a

Inflation

Emergent
Yet

prices

markets—has contributed to these

was

at

investment

riod.

with

Division,

kept

inflow of foreign capital
participating in Canadian
opportunities.

strong
funds

United States in the two-year pe¬

on

of

however, far

the U. S. dollar by the

an

dents; and John G. Richards, Pe¬
troleum Engineer in the Oil Loan
.*

has been

over

such

spending

re¬

being depressed by the trade

deficit,
mium

result

Officer, was elected
Harvey G. Brooks,
Cooper, Jr., and R. W. McKithan, Assistant Cashiers, were
appointed
Assistant
Vice-Presi¬

CO.

the Canadian dollar,
from

trade

heretofore
exchange value

any

The

corded.

rise

deficit

international

than

ards, and considerably more rapid
experienced in the

Joe B.

H IRSCH

Canada's

than has been

Trust Officer.

Corporate and Municipal Securities

the
a

economy

Heavier

i

numer¬

exports,

growing

goods,

sistant Trust

in

increase

high by Canadian historical stand¬

ele¬

Tom

1956

swelling
of which

imports has produced

a

slope
well approach $30 billion

a-nd may

meeting.

a

projects of a capital nature.
outrunning even the substan¬

larger

steep

Worth, Texas, at the annual stock¬

by

many

imports,

to

at

climb

Fort

of

continued

Gordon Reginald Ball

holders

sistant

1

the

as

national
product, has

••

Carter,. Jr.

Director

a

board

familiarly

and

gross

/

,

Dr.

simply

adays

capital from $1,-

$1,200,000

now¬

•referred to

C.

N.

21.

\
#

to

Na¬

Union

Charlotte,

has increased its

Dec.

which is

according to Estil Vance,
President.
M.
F.
Mark ward,
Comptroller, was elected VicePresident; R. L. Cotton, Assistant
Vice-President, was promoted to
Cashier; Volney C. Castles, As¬

Underwriters, Distributors and Dealers
,

in

and

the

stock

new

tional

ous

tial

of goods
services;

relieved

have been destined for the

try's total out¬
put

of domestic output

excess

been

volume of

in

result of the sale of $200,-

a

has

coun¬

#

*

mand in

In

The

moted,

«,

to

extent the pressure created by de¬

prece¬

dents.

& discounts-

Undivided

and

J

hard

is

find

secu¬

holdings—i-

As

R.

Banking

of

Jr.,

at

ing to

positions in

the American Institute of
and

Club.

Bank

$34,648,823

resources—

Deposits

#

*

Union Trust Company of St. Louis,

President

as

Total

just closed has been

year

highly eventful one, witnessing,
as it has, changes in the Canadian
business scene and in the banking
a

,

'56 Dec. 30, '55

Dec. 31,

18,022,978

16,134,476

profits

board of directors of the St. Louis

Mr. Ryan served

1929-1930,

BANK,

KENTUCKY

»l!

Joseph H. Bascom and John R.

Mo.,
two years,

The

*

NATIONAL

SECOND

THE

rity

698,873.563

Caulk,

of

Cashier and Manager

404,805,825

417,375,487

!'!

made

was

1,586,613

Si!

Sji

se¬

holdgs.

Undivid.

serving in the savings department;

1,912,304.567

discts,-

Union Bank and, a year later was

in

1,450,582

profits--

power

of the dollar.

due

Govt,

curity
Loans

in 1910 in the St. Louis

career

102,247,177

quelling it, there is the key weapon of monetary

$

1,854,252,502 1,750,250,647;

—

and

from

Chapter of the American Institute
of Banking, etc.

June 30, '56

2,008,624,029

resources-

Deposits

the St. Louis

Past President of

Undivided

MICH.

DETROIT,

OF

$

He is

cashier of the bank in 1949.

110,612,865

discounts-

8:

of effectively

policy which should be used to preserve the purchasing

•

Dec. 31, '56

and was elected

ment for 22 years

BANK

NATIONAL

depart¬

foreign

National's

62,841,116

ASHLAND ,

merged

First

85,619.077

:—

secu¬

holdings

rity
Loans

se¬

84,943,495

65,124,354

— _.

Govt,

S.

which inflation could be said to spring, nor any

from

due

pointing out that though there is no single source from
single means

Ball in

244,716,770

250,953,253

_—•

and

banks
U.

501,639,555

404,805,825

banks

from

Deposits

due

271,348,721 263,837,438

resources

Cash

1,750,250,647 1,880,286,872

and

Cash

'56 Dec. 31, '55

Dec. 31,

Total

1,912,304,567 2,014,708,521

resources-

Deposits

studied law and
in 1914, was admitted to the bar.
The same year, he joined the St.
Union

$

$

the meantime, he

Louis

MICH.

Dec. 31, '55

'56

June 30,

Total

COMPANY,

#

the

During

1906.

years

BANK AND TRUST
LOUISVILLE, KENTUCKY

FIDELITY

CITIZENS

5,294,155

DETROIT,

OF

BANK

NATIONAL

he held positions
with William R. Compton, and the
old Mercantile National Bank. In

next

4,754,588

j •:

of

Bank

170,217,434 180,485,100
83,450.455

profits

possible real national

production in 1980 that "may well stagger the imagination"
providing the emergence of inflation from a potential threat
to reality, though still in its initial stage and far from rampant,
is resisted resolutely and vigorously.
Steps pursued by the
central bank and by chartered banks are recounted by Mr.

ganization since 1937.

103,254,137

discounts-

&

Undivided

of Montreal

Leading Canadian banker envisions a

.

wtih the Hussmann or¬

secu¬

holdings

rity
Loans

63,086,672

57,154,294

Govt,

S.

BALL*

By GORDON R.

President, Bank

from

clue

banks
U.

a

as

and

career as a messenger

in

Commerce

1910'

Cash

Mr. Lonergan began

old

the

in

Bank

Union

bookkeeper.
his banking

resources——

Deposits

Assistant Cash¬
ier and Manager of the savings
department, who joined the St.
and Leo

$

(

Total

Union Bank, since 1914;

St. Louis

Dec. 31/55
$

Dec. 31,'56

,

Depends Upon Sonnd Currency

•

COMMONWEALTH,

THE

OF

BANK

Canadian Economic Growth

Joseph

father,

News About Banks and Bankers

a

Thur sday, January 17)

...

(220)

NY

N. Y.

1-1459

page

5/'

Number 5604

185

Volume

.

.

The Commercial and Financial Chronicle

.

(221)

■

25

./
and. has exemplified in

shall continue to insist that the
our way
purchasing power. Except where
.the enduring human values executive departments and agen¬ necessary to correct obvious in¬
of. mind and spirit.
cies
of
v
government search- out justices, wage increases that out¬
•Through fthe- past four years additional ways, to save money run productivity, however, are an
and manpower." I urge that the
these, principles have guided the
inflationa^ factor. They make for
legislative programs submitted by Congress be equally watchful in higher prices for the public gen¬

of life

..

State oi the
In document read

•

the

personally before joint session of Congress,

Eisenhower emphasizes

Mr.

and

As

them to

enactment of proposal designed to thwart
Soviet control of Middle East countries. Urges passage of

economy

Administration

gress.

inflationary aspects of nation's

urges

&nd

•

we

current

foreign,
the

account

the

to

Con¬

to

events,
must

we

complex

domestic
into

take

that

entity

'

Administration's school aid

is

and recommends study

program,

the

United

States

what endangers

of nation's monetary and credit mechanism.

of

America;

it; what

im¬

can

We

President Eisenhower delivered dren pit their spirit against

before a

A

was

over

to

ereignty
must

eralized dis¬

rather
to spell¬

nation,
than

this

cific

of

program

the

satisfy

Particularly,

,

ing out a spe¬
for

dangerously

struggle to
aspirations.

the

fronting

rich in

in

—

these

the

in

in their

and

aims

a

our

own

needs

of

many

foodstuffs and industrial products.
It is rewarding to all our citizens

past year,

the pattern
thinking among

in opportunity to earn and to ad¬

in

vance

self-realization

in

and

self-expression. It is fortunate in

This

is

no

and

faint

tural

pious

and

religious

The forces now at work in
the minds and hearts of men will

less

not be

Eisenhower

Pres.

con¬

enterprise.

In

tained in sub-

to - the

messages

the

of

our

are,

initiative

venture

spent through many years.
main, today's expressions

law- of nationalism

,/

centers.

It

is

vigorously dynamic in the limit¬

hope.

and objectives

makers.

half

a

expansion, it is still
wide variety of natural

its wealth of educational and cul¬

dom.

-sequent

a

foreshadow a world
transformed by the spirit of free¬

Congress. The
Administra¬

be

After

economy

It is first among nations
people's mastery of indus¬
skills. It is productive be¬

yond

complished

will

itself.
century and

our

The changes already ac¬

millions.

con-

si deration of

tion's

its

trial

human

tide has changed

attitudes

is

resources.

new

/sometimes

problems con¬

structure

constant

of

rest, peoples sever old ties;
alliances; experiment—

seek

of

visible

than

more

economic base
national independence

and

that

It

willingness to

characterize

free

is productive

of

a

widely shared prosperity.:

in spirit, echoes

pledged

the

erally and impose a particular
hardship on those whose welfare

.

Integrity

depends

Government's

the purchasing power

efforts cannot

public

be the entire

cam¬

the

thief

rob the individual of the

can

of

the

pension

security he has earned during his
productive life. For success, Gov¬
ernment's

efforts

must

be

leled by the attitudes and
of individual citizens.

paral¬
actions

I have often spoken of the pur¬
pose

of

serve

the

million
terest

this

Administration

national interest of

people.' The

must

take

to

-

Freedom

been

defined

as

plication to the areas of wage and
price policy in a free economy.
Should
we
persistently
fail to
discipline - ourselves,
eventually
there will be increasing pressure
on

in¬

failure.

over

has

the opportunity for self-discipline.
This definition has a special ap¬

170

national

precedence

generally to share in the
improvements in tech¬

benefits of

nology.

social

and

government

will

By

step

by

redress

to

that

process

the

freedom

step disappear. No
the
domestic
scene

temporary advantages which may
be secured by particplar groups

subject

at the expense

of the friends of American work¬

In this

of all the people.

regard I

urge

leaders in

business and in labor to think well
their

on

American
of

ments

responsibility
people. With

to

the

all

ele¬

ing

are

attract

more

and

men

women

the

concern

and

of free

business enterprise than the forces
that threaten a steady deprecia¬
tion of the value of

society, they owe
the Nation
a
vigilant guard
against the inflationary tendencies
that

on

should

our

money.

our

always

at

work

in

a

Our economy is strong, expand¬ dynamic economy operating at to¬
ing and fundamentally sound. But day's high levels. They can power¬
in any
realistic appraisal, even fully help counteract or accentuate

forefathers' struggle for in-

on

of retirement income and

savings.
Wage
negotiations
should
also
take cognizance of the right of the

value

Strong Economy

American

the

and

which

on

a gen¬

cussion

The

the self-respect of authentic sov-

10, the burden of which
given

Jan.

on

guns

of the Union Message and tanks. On a larger scale, in
joint session of Congress an ever more persistent search for

State

Dollar's

share in guarding the integrity of
the dollar. But the Government's

that

his

.

Guard

paign against inflation,

it.

prove

this matter.

apply

attempt

-

Farm Situation

Concerning
another vital

Heartening

developments
sector

omy—agriculture—I
that the

has

of

our

am

in

econ¬

gratified

long slide in farm income

been halted

and

that

further
dependence.
This Republic cannot be aloof the optimistic analyst will realize such tendencies by their wage and improvement is in prospect. This
is heartening progress. Three tools
business and government to join to these events heralding a new that in a prosperous period the price policies.
that we have developed — im¬
principal threat to efficient func¬
Business in its pricing policies
togetherMn combatting the infla- epoch in the affairs of mankind
proved surplus disposal, improved
tion peril and reiterated the need
< Our pledged word, our enlight- tioning of a free enterprise system should avoid unnecessary
price
price support laws, and the soil
is inflation. We look back on four increases
for implementing the Eisenhower ened self-interest, our character
especially at a time like bank
are
working to reduce
Doctrine
for
protecting Middle as a nation commit us to a high years of prosperous activities dur¬ the present when demand in so
price-depressing government
East countries from Soviet aggres- role
world, affairs;- a role, of ing which prices, the cost of liv¬ many areas presses hard on short stocks of farm products. Our con¬
supplies. A reasonable profit is cern for the
fSion. Mr. Eisenhower renewed his vigorous leadership, ready ing, have been relatively stable-r-well-being of farm
that is, inflation has been held in essential to the new investments
plea for enactment of a Federal strength, sympathetic underfamilies demands
that we con¬
•

his

In

the President
necessity for labor,

address,

the

stressed

—

e
•

>

Thfr President's

text follows:
I

pro-

'

report

to

st^din|;

on

the Congress
the State of

public is founded. ^oriaimed m
\he Constitution of the Nation a d

relationships of ln ™any °f
the Union to the other nations of menta,
and
the;, world.

i
that

convinced

at

firmly

here,

come

time in

no

the

history of the Republic have circumstances

more

emphatically unechelons

derscored the need, in all
of

wisdom

:

and

You meet

vision

for

government,

and

resolution.
in

a

of stress

season

that is testing the fitness of poJitical systems and the validity of
political philosophies. Each stress

Hevout

founded hi devout

rehgious ^convictions,

the

This

danger

resolution

these pi in-

that

requires
the

a

Federal

Gov¬

liberty.
A wise

its

share

sources,
,

.

for

welfare.
MA. ceaseless

„

human
,

_irv,

■■

the

of

only

a

Nation's

pru¬
re¬

that it shall live within
carefully
measuring

means,

against need alternative proposals
expenditures. ' :
I

for

Through the next four years, I

prpf^if{y

an

ex¬

business

But

economy.

must, in the national in¬

terest, studiously avoid those price
rises that are possible only be¬
of

cause

of

the

vital

or

unusual

needs

whole nation.

stantly search for

If

our

economy

is

to

remain

increases in wages and
benefits, negotiated by
and management must be

healthy,

other labor
labor

reasonably related" to
ments in productivity.
creases
are
beneficial,

recommendations

the

agriculture

field

•

of

tide

marked

'

by

nawidej

spread revulsiqfti and revolt against
tyranny, injustice, inequality and
poverty. As individuals, joined in
a
common
hunger for freedom,
men
and women and even chil-

L

M

4

M

4 •*> '

cern

,"Members tMjcw York Stock

120

RAILROAD and

YORK

UTILITY,

MUNICIPAL

SECURITIES

j

INVESTMENTS

Laurence M.
MEMBERS

AMERICAN STOCK

48 WALL

Marks 8c Co,

NEW YORK

STOCK

EXCHANGE

STREET, NEW

TELEPHONE HANOVER




2-9500

EXCHANGE

(ASSOCIATE)

YORK S, N. Y.
TELETYPE N. Y.

1-344

Federal

Government

alone. State and local entities, and

Continued

Co.

Exchange

BROADWAY

NEW

INDUSTRIAL, PUBLIC

&

be¬

strength of the na¬
they must not be the con¬

of the

provide wage earners with greater

Wertheim

resources are

ent and future

tion. But

improve¬
Such in¬
for they

opportunity for

against those who deny them and
in counselling with our friends,
At home, the application of
these ^principles to the complex
problems of our national life has
brought us to an unprecedented
peak in our economic prosperity

in

con¬

ing conserved and improved more
effectively. Their conservation and
development are vital to the pres¬

phe- ciples is uniVersal, lighting fires
in the souls of men everywhere.
today, the surging We shall continue to uphold them,

understandable

tionalism Ms

are

soil, water, mineral, forest,

•

In the world

jand

of

fish and wildlife

auniversal

of

nomenon.

by

tained in the Budget Message.

j stems in part from causes peculiar service within the family of na.tpii itself.. But every stress is a tions The appeal of these prinjreflection

ways

Legislative

to these principles, in
relations with other peoples,
won us new friendships
and

hag increased our

new

which they can share more fully
in our unprecedented" prosperity.

Our

Wages and Productivity

firm

ernment shall utilize
dent

concern

that provide more jobs in

panding

.

,

has

that

leaders

cip*es
\
'
'
A vigilant regard for human,

QUr

clear

larly if the government might be¬
come
profligate in its expendi¬
tures
or
private
groups
might
ignore all the possible results oh
our economy of unwise struggles
for immediate gain.
'

the principles on which this Re-

the Union and the

is

danger is always present, particu¬

■

"

,

it

But

check.

^

■

TT

.

,

4 The State of the Union, at the
*
v
i"
opening of the 85th Congress conmessage in full tinues to vindicate the wisdom of

before

appear

today

rights

■

■

*

-

*r

civil

and

aid

school

on

page

65

Commercial and Financial

The

,

£5

Chronicle

of Business

The New Dimensions

magnificent story' to tell,
beiuie what that story

Necessity of American businessmen to transcend from
sive interest in their respective positions in industry to
domestic

Chamber

1957

Up

that

have

reference to the

.the community.

con¬

a

business opin¬
ion

Wash-

to

V,

discuss the difficult issues of foreign policies.
It is
not, however

,

World Perspective

beyond

,

p

1

My

is sim-

answer

From

e.

*

They

dewlonlnl

have positions of

nf

unAaru!

an,d

_

associates

dedicated .to own

are

plays

business
i

•

w

'

material

to^the

resources

rm^eDts

a

pre-

our -no . longer moats but bridges. We
rti 1C1C
ol "f nvn of i trrv
colleagues Viotm vi s\ alternative +a tirAvtlri
have no
to working out
nnl 1 no

«■

major influence,

relations

impact of pub¬

the

Outside the office

Tipvplnn

Own

Policies

Positive

.

In

together for

a common
world has rightly

Tke

obiective

the position of leadership-injhe
world. But by the same token,
businessmen have b,een promoted,
They too must accept responsi-

saying

we

multitude of other ways,

a

policies

public

ignored

refresher

take "a

in that city
x
course.
I
•j

if

of t^e presentjt

n-

,

.

.

continent
is sufficient unto itself gnd they

Whatever the damage done by the
war in the Middle East, we will
have laboriously to repair this
alliance in the common interests
no
guideposts save .those of the of the United States and of all
past.
They have won the first free peoples.

meets

consistently
Representatives

our

6

;

Iif-

.

7

.

keeping

»

hoVa

true

beyond

*7
f* *7,
In.suggesting we.take

Parndne

fan

In the past plying

nrh

t

4-aa

that

1

i

we must
n

face
*,

•»

■

still

Second,

must recognize the
continuing

we

momentous

and

bring with them a world r.esp.onsi- changes in Africa and Asia. In a
bility.
Especially in matters of single decade, 16 new nations have
foreign economic policy they are appeared in Asia and Africa with

^ ff

couie.soone, rather, emerged 580 million-people; ha.
tion.of from a revolution as the,

;

quiet times world affairs are major political and-military power'
somewhat ^r

to the: inevitably

up

are

that these positions

see

greater than later.

a

...

_

however,

offices and plants,

our

who

positions in industry; they cannot,

The truths of.human

relations, we are patiently discovering in business are no less

we Ye ^ to know what interest in public affairs, I aanim-

t

we. think, and why.
lira

toucn

in

Business,

a

businessmen

living in a world that is past and
gone.
They look no further than
their own company.
They have

Congress-, ing a common task, but so also is

our

we've

second,

means

^

•.

that next time you are
you

it

need

a°LTsu£e%

Buf everfkf you
*

We can't expect help when

we

governed.

-

contact

man.

This is the way we are
The question then is

process.

with

sonal

ham-

being

are

This is the democratic

mered out.

.

the

Some imply that this

.

„

and in

^..1

prosperity will be temporary in-,
deed unless it is founded on the
would leave the rest of the human strength and-unity of ourselves,
race to their fate. Indeed, I would
and our allies. Upon the achievewe return to outworn phrases that not be frank with you if I did meat, of this major objective all
at best ignore and at worst deny not say that in traveling through else depends—our security, our
the important sdciad and public the country from time to time one prosperity,
and our
freedom,
the

To

should interest
ourselves in politics, I am not recand indeed, of
aspects of our business system,
John S. Coleman
the world. Day
ommending • that we should all industrial management, in fact, is
by day in Conbecome politicians. My point lS not merely a technical skill. It is
gressional debate, in newspaper rather that we can be effective al$o an art of leadership. A church,
editorials, in government reports, in politifcs only with a continuing a university, a hospital are organiin the statements of labor unions, program.
This means first, per-. zations of human beings perform-,
country,

...

of

no objective of American foreign
decisions are being, gpsed that these techniques are
policy is more important than that
made in city councils, Congress,
of strengthening the Atlantic comuniverSai and it sees in them new
and government departments' hnnp
hope for material and spiritual bilities of leadership appropriate munity, not only as a military
for material and sniritual
.
.......
-wi-*which will directly and decisively
to their economic responsibilities alliance, but as an economic, pogrGW^j1
determine the climate in which
and to the position of our country litical
and cultural community.;
we will do business. In interesting
Political Effectiveness
' in the world.
Our first interest is peace.
Our

of

future

rest

.

lic opinion is
determining

our

the

not

are

principles 0f human conot neglecting our business, but
operation businessmen have thus
rather attending to it in its wider
mgde a unique contribution. And
but no less important aspects.
yet we seidom speak of it. Instead

the

moment

with

human
These

and

fullest

management

of

neighborhood^and me/work

ourselves in those decisions we are

to

moment

busi-

as

oart. otje in which
dominant, part? one in 7

yGSIS tOU

.

n?

g t o

n

competence

our

Tbe area of our

and.the plant,

of

flow

stant

it

is

Why

policies?

must

we

-

^lst illciude

and
or to

-The United States, as I have said, world. We are for better or worse
did not see these new responsi-..neighbors, and like neighbors we
bilities.. ' But.r the i international must have machinery, for the reso'■milv Hdevant to big business' they-situation
has placed them upon lution of neighborhood problems.,
are also behig aimli^th^ughoid -this
country,; and-; consequently ,If we cannot have a community of;
to theirs? Are we making our Amerjca jn small shops and farms, upon businessmen. Recently some- nations, then indeed >ve must seek,
proper impact on national policy.
hospitals, in offices, and in gov- one saidvthat
;§te|es solidarity at least with those with
We cannot live our lives between ernmeilt and professional offices— ba<? been promoted. And certa n whom we. have common interests
our office and our home without everywbere where men and wo- it is that we hay.e-be,en called
and aspnations. Despite the events

initiative in the formation

an

lGCfillt

111

models..

Turning to the domestic scene,

Why is it important that Ameribusinessmen
should undernational

.v

a

is

which

and who refuse to see that their positions
responsibilities as our security, prosperity

'-^an

of

J

there

review

,

Mr. Coleman
advises that where government action is necessary, business¬
men should help plan and administer governmental policy and
not leave the field to the opponents of business or special
interest business groups who care not for the public as a whole.

fake

ai

world

competent, to

evaluate the world situation

°n^ 110 a

exclu¬
under¬

involve such world
and freedom.

wiidt

the

not

,

interest cannot, nessmen to note certain facts
ingredient in the success of Amei - however be COnfined only to na- about the present situation which
ica is the science
of} ffairs Upon America, upon deeply affect us both as businessBy this I mean concepts not
business society have now men and as citizens.
■
of production and distribution but tms
ou
bur<Jens
o£
world
also of social living. In naly. in .c
l3
which we did not seek
Our Security, .Prosperity and
xrinarinin
in India, and
leaaersnip wiuuh
Freedom
the United Kingdom, in India, and
* we were
in Australia—to mention just a
prepared. I say this business*
In the first place, all of us recfew countries — business sc
niywords, cos' ognize that we do not live alone,
other tei a society
of, as some call them, admimstia- ***?%>£
nlaVs a ore- The oceans that surround us are

a

past and gone

suit

growing realization that a

constructive role in developing and supporting
and international policies is emphasized by National
head in reproving those still living in a world that is
well

as

De

Across

President, United States Chamber of Commerce
President, Burroughs Corporation

taking

us

COLEMAN*

By JOHN S.

let us recognize it and be .eager to
but let participate in planning and adis.
ministering governmental policy,

Business has a

societv

workable

i

Thursday,, January 17,

,.,

(222)

/>

«

.

.

<•

e m o v e d- of Asia, and a power hostile to the
'
interest.j So long as United States. Though other newly
a shooting war we canindependent nations may not be
*

a

,

-

-

•

•*.

'i,

,..

'

'

..

_

i

.

-

^

which businessmen, too easily

the.
A" "hcil iinpp
Westerp. World is in: the balance.
In many cases they- are seriously.
more
on
<
*heir right to be there; Indeed,,fmDOrtant let u^deveidn
insistin§ °f the tdangers of big. are exposed. The causes ^orkpig prejudiced against us by their co-;
our Z
own
government,
on
overy legitimate group in our so- nositive
nolicies
tested
hv
th
^overnmenf» on,
dangers it below the surface break out into lonial past. It is true that what
i
by the'presents to freedo
mety has the right to contribute standard not lust nf business in
P.resents,to ^eedorn, to the effi- the open. What we must remern- they want most is freedom to de4*c
? J
0 business in- ciencv ot economic enterprise, and ber. however, is that thev
irJe their
affairs: without the
its experience to the process of ?
;p7.porhTlf"tha
r^AH^-t1U"
°!
enterprise, and ber, however, is - that they are cide their own affairs without the
government and take its chances
we hear
lot about what labor 1
very c!ynarr!ism °f thei^ ah the time and that pur intervention of any great power,
m
the^occss of democratic deci- is ^ ^
Z
we
or
Soviet
must
realize ur.e to

magnificent
i-hn.

new

buildings housing
'ItiKni' „nJnnp
of labbr unions"
minute

headq^t-ers

X do not question for one

Uon"to7rinnort
HOIl XO bUppOn

jnCaSUJ. CS iO* .WXllCf*

assume that .these mat- 1 ostile, their, future attitude to

indilied to.

m'g

expi'^®!5! thAinCpltrAC fpr<5
rln nn+1 1-IAAH
1 QWoniltUI.L
S°S"^ vehemently.
hich
lotf xp^ss"^etos ters: do mot .meed : our; attentfc
noliticalH
hfirS^ihle 5,,
more vehemently. We are right in But then-suddenly the realities
But
insisting
the
^

are

nnr

Wnetnen Wnv1'^ 'io "in"

more

™

d

our

„

ovnurionro

tn

tiiA

mwpcc

nf

,

.

.

-

.

a

«!on.

That,

I understand it, its

as

the American way.

however, I
Xs

our

propose

The question,
to you is this:
in

contribution

a£>ajnst

the

Jan.

address

New

3,

York

by

Chamber

of

before

Commerce,

1957.

and

^
of
Vague'lSgeiierahties °areaiof lliUle
.

;

proportion help

Coleman

Mr.

R,,t what is lahnr for

.

I

here.

...

•An

a

am

..

is

;

that
that

*Via

-Ir

.

that

"

clear

a

conception

uic
attempt to predict the uutu
outcome of

tlie ^n~ c,urrent developments, but

?~

strume 11
u

recognize them. I would not

l!

without

government can and than

jj7"

tired

ot

slogans
igans

and

own

r

we leave bv default
to the opponents of our

thevfield

bloc.

At the same time it is evi-

more dent that they are
buttress
molitical
pua

world tensions and consequently
PmlltUCieS. What we need are business philosophy and practice? in the policies
by Which" vve "seek
more
specific
to
guideposts
a. Or just as bad, we leave the field peacefully to control them. I am

1

STthYwS

ever they emphasize hpw.
deeplv all of us are involved in

fm /ore that the should be used

.

public

siiva

h

are

•

determined to

independence

lup

_

In

with econoraic development.

this respect the rapid development
of

the

Soviet

Union

from

a

pre-

'to individual business groups who
do not hesitate to use
government
to

Established 1928

-

.«

•
,

We Offer

V

*

.

a

In

:

*

AND

.

ciety;
sarily

government

play

FOREIGN ISSUES
Particularly Adapted

to

Service Firms

the




We

stay

the in¬

SPECIAL SITUATIONS

duty of government to develop
implement policy in matters

which

and

litical

We

it

alone

authority.
one

are

extreme,

CO., INC.
Teletypes

NY 1-944

&

NY 1-M5

need

questions

course

course.

is
It

or

the

and

is

here

can

or

other.

the
I

of

laissez

make

two

frequently

businessmen

the

solution

not

are

scope
in po¬

offered

are

dictation

There

the

often

we

offered

We
.

has

Too

debate

choice.

BROADWAY, NEW YORK 5, N. Y.
-

neces¬

in which

government

Inquiries Solicited

,

-

so¬

role.

area

most

Telephone

must

positive

government

faire.

REctor 2-7760

modern

that

either

W ith Retail Distribution

120

whole.

insist

in

UTILITY—RAILROAD—INDUSTRIAL

FOX &

the

to

a

outside the

and

including

F.

a

as

At

ALL CLASSES OF BONDS AND STOCKS

P.

special in¬

dividual enterprise can do the
job.
the same time we must admit

in

Your

own

reference

complicated

our

must

DEALER SERVICE

JTe Are

without

interests of the public

COMPREHENSIVE INVESTMENT

PUBLIC

their

promote

terests

this

sides

to

Hettleman

practical
a

&

think

that

;s

ONE WALL STREET

NEW

make their most

effective contribution.

Where the
government intrudes into the pri¬
vate

sphere, we must fight pet-/
sistently against it. But where
government

action

is

Co.

middle

necessary,

.

Teleplioae: "WHitehall

3-5770

YORK

5,

N. Y.

•

Number 5604

185

Volume

industrial stage is

The Commercial and Financial
Chronicle

...

impressive

very

the

them.

to

It

total

business

Businessmen have

that

seem

may

the

of

current

America.
their place

prestige in the nation by their

record

brutal repression of the revolt in

of

won

of

succesful

management

of

(223)

and

greater

-,

leadership.
I

problems

Not for

believe

that

world

of

Burnham & Co. to Admit

moment do

a

this

will

happen.
We will respond because it is nec¬

■

Burnham
Broad

and French

will

attacks

equally

be

branded

perialism. Past acts of tyranny and
cruelty by the Soviet Union have
unfortunately made little impres¬
sion

peoples of Asia and
Over the years they have

Africa.

has

history

m
."•'a

Recognized

been

struggle

a

West.

for

always

derived

be

to

advantages

of

to

.

the

is

from

with

concerned

Kno/

presented

the arch

as

,0
ceilinS on Federal indiWclual income tax rates, instead
?PJ,fr®.Present 91% is possible in
a ** 1T1°ie Congressional atten-

tion is paid to

tax

Ally

Thus the communists have

of

1

the

many

ideas

suc¬

I

Soviet

incredible

recent

in

turns

uucb
does

majority

of

world

are

sk.ui
skill

neca
need

and

economic

I

A

-n

1

:

■'

an

will
if
u

Indeed

democracy.

someone,

horses
noises,

We must be
we must oe

rapidly> emerging
stage.

nations

new

on

Pnn

V? I

have spoken of politics,

national

in

all

belief

that

we

will

like

it

matters

attention

the

of

all

Americans, but especially of busiWhen

nessmen.
man was

the

asked what he did during

Napoleanic War, he answered,

"I survived."

the

famous French-

a

same

If

way

we

can

through

role

answer

in

i

however, with the trickle of

in

York Stock

Granger & Company, 111

of the

New

York

Exchange,

on

ic e

change,
manager

Simonson
Street, New

1.

Feb.

on

of

Mr. Simon is

Bond

the

on

Francis G.

Rea

to

will

1

Feb.

Exchange,

genjous little schemes

Brokers and Dealers in

Industrial, Municipal, Public Utility and
Over-the-Counter Securities

rev-

has

to

tried

Bank & Insurance Stocks

(that Con¬

stop

for

25

form

agreement

rates

are

much

that income
too

—•—

tax

G. K. Shields & Co.

high, both at

w\j

dirppt

individual

fhp

thp

nf

in,7Pnfion

Members

€ause 01 tne-invention and

...

K

h

it;

Matrii,
Magill.

afford

iust

one

T

.

i«

«ThP

Blames

maTy'offts
,

10^„-

agencies seek to
'

'

■

t that

Underwriters

jj^end^d benefits' in the-tax laws,"

the Federal income
T
dismissing nrnnnsnls to makp
tax law has a greater impact today
the
more
upon the
personal life of every progressiVe Mr Magill said* "If
American and upon the form of the mQ t widely discussed ConAlthough

COrporateSncom^LxV

business

every

transaction

than gressjonaf

other law on the statue books,
he said, "Congressional discussion
of the tax laws seems curiously

should

uninspired and halting."

duced

any

..It

legs

or

wouid
There

them.'

be

limited

to

at-

for golf shoes;

and to avoid any

£°"sid^
aSsertiAg

day after day in

earnings

f they see

fit; and m

compelling business to adopt forms

INDUSTRIAL and MUNICIPAL

SECURITIES

any

its

have

la?ge7
its

taxes

re-

about 500 000 of

are

Any
have

to

RAILROAD

PUBLIC UTILITY,

corpora inmmp nf *07 million

non-essentials like loop- would
and the excise tax on bags There

seems

Distributors

subject

that

011

adopted

.fh

f.

tractive
holes

5m

be

—

Dealers

_

Congress

Bell System Teletype NY 1-1633

.

nnmnliVatpd

J.' iVs(tussion of
suggest inai a discussion ot
within'reach. more WOrth a set more essential.
these matters,-is
within reach,
said

rhoose "

should

Mjrfoy 4-*)155

Association

5, N. Y.

that
operate to defeat the
Vfify economic development that

tax

rate ceiUng is the

National Security Traders

15 William St., New York

nnri

coiporation
increased,

taxes

only 78 of them."

are

Affects

Small

Stockholders

W. C.

Langley & Co.

Members New York Stock Exchange

Opposing expansion of progressiveness in corporate income taxes,
he said the proposals would penalize the many small stockholders

115 Broadway

New York 6, N. Y.

*

Tel. BArclay 7-8800

^oSnsfconsumeS63
suffer when the corporations were

forced to pass on the
and

higher taxes

prices for their products;

barrier would be created for

a

economic growth.

Finally,

Adams

Peck

&

Exchanie

of

problems
as

they

are

BROKERAGE SERVICE
r

he

indicated, would be about a
partnerships and some two
million sole proprietorships.

DNOBrC

STOCK

'

-

'

•

I

•

.

'

A.

V**

million

RAILROAD SECURITIES
Preferred

Bonds

the

businessmen,

supposed to do, because the ben¬
efits would apply to only "a nar¬
row
segment of the small busi¬
nesses of the
country." Left out,

DEALERS IN

Leased Line

solve

not

small

York Stock Exchenie

snd American Stock

the proposals

said-,

he

would

"Congress

Commoe

and

will

be

for Banks, Brokers and Dealers

short¬

very

sighted indeed if it adopts the pro¬
posal, for there is every indication
that it will
operate against the
of the

interests

best

country," he

HARDY & CO.

said.

Unlisted Investment
120

New York.

Broadway

Telephone REctor

2-4949

Teletype NY 1-724
Private wire to




Philadelphia

York

Members

Stocks

Tax

The

5, N. Y.

Foundation,

a

development of more effi¬

in the

cient
the

government

taxpayer.

national

less cost
also serves

at

information

agency

to
as

for

civic and research
throughout the country.

organized
groups

It

New

Members

American

non¬

profit organization, is engaged in
research on government spending
and taxation. Its purpose is to aid

Teletype NY 1-733

Telephone DIgby 4-7800
ST.

Exchange

New York 4

30 Broad St.

MAIN

Stock Exchange
Stock

&

MEETINGHOUSE LANE

SOUTHAMPTON,

L. L N. Y.

Stock

admit

partnership.

years), than with the fairly uni-

in higher

Guaranteed

Co., 25
City,

York

New York

of the

members

Trad¬

and

&

Cohen,

ing Department for the firm.

Foifndation'o the bottom and at the top of the
Foundation s rate-. scale; that high rates are the

1

Members New

Feb. 1.

Cohen, Simonson Partner

Stock Ex¬

Broad

emie-that may escape through ingress

i

ai

reducing and denying the liberties
of citiz|ns to
spend their own

business, it is rather, if you like,

Dodge & Co., 61 Wall Street, New
York City, members of the New

Broadway, New York City, mem¬

concerned,

more

coulci atloid just one fo„tpr government
0ther
accomplishment
m
»

.

.

this 50%
whirh

longer iust

no

•

d

POnid

wp

1957

appropriate to the

is

an

be

we

be¬

partner in Clark,

with

wrong

firm

will

Rutherfurd

High Rates Cause Loopholes

tav

modest

Conclusion
function

thp

nn

«<Tf

«mes.

Our

P.

limited

a

Federal taxes is that

*ropos?b t0f inHCreaSe thet pr0gres" a«eir
sive xates of the corpoi ate income provisions

supporting domestic and international policies

ners

comments on sharpindividual utxhzation of loopholes; that the
tne attack on
tax with a

•

the years

developing and

in

n

income

ahead, it will be only because
businessmen, together with other
individual
Americans,
played a
conscious

thing

from

the

Frederic Simon will become part¬

Im¬

is the
whether

these

not

or

demand

^

myl remarks

increasingly,

main

come

and M.

The goal is
of Congressional
provided we don t permit runaway studies and hearings than a heapboth spending to unbalance the budget.
jng handful of 'loopholes' or 'un-

international.

and

plicit

in

Wp rpt,„

-.wi

so

world

Tax

the

monthly Tax Review, Magill cou-

:

the

attention

non-essentials

Pro^rpssivp

ally of the West and its

mediator with the

esiaei t

entitled "How

Roswell Magill

has pointed

two
two

ride
iiae

both

we

understanding
unaeisxanaing

as

must,

ouc
out

If '■

j#

the

economi-*

move
ii

ana
and

T

This,
of

v

Foundation.

cannot

peoples

the

V-^

of

Ltu Lam.
j. nts
certain: ; The

cally and politically. And

•

"The

in

in¬

Admit Two Partners

,

-Jeffrey S. Granger, Jr.

and procedures for tax reasons,
which run counter to other wellestablished governmental and
business policies!"

fpr

President

gill
g 11,

unlikely

we

anything.

seem

the

on

a

ii

and

of

sure

iiuwtrvui,
however,

we

a-

Mh

Roswell

be

cannot

events

world

too

feel

actions

\

*

bags for golf shoes."

on

"Should

Indeed, reviewing the

predicted.

1

bags

on

reaction of these two continents to
current

partnership

24.

and

capitalism

of

an

as

Jan.

retires

Soloway

limited

Mr.

Granger & Company to

bers

political dependence The final

and

Mary

of the

Clark Dodge Admits

they are too
high," he said, "and attention to
loophples, no matter how concentive
n o n-estrated, will not lower the burden
sentials like significantly."
loopholes and
Correction of loopholes is imthe excise tax portant, he said, and continued:

ceeded in associating in the minds

'•ii

active

been

ship.

admit¬

are

partnership.

to

has

17

member

will admit

Ethel Stewart to limited partner¬

less to "attrac-

Mediator

and

fund

mentals

of

both workers and colonial peoples.
An

91% ceil-

pay more

^'attractive

to

tax

+irm 1C rtairI +ri

so-

enemy

Jan.

Stock Exchange,

York

Stock

dividual floor broker.

...

called imperialism, and capitalism
is

less

and

loopholes and the excise

*

A large part of communist

doctrine

if Congress would

year

fundamentals

tax

like

his

encouraging revolution in Asia and
Africa.

Adler

-

ing, is possible this

the

Lenin and
understood

Moreover,

associates
*
*

colonialism

the

against

■4

tax

Federal individual income taxes,
against the present

freedom, not against, however, the
Soviet Union and its system, but

4

on

Adler,

Jack

Exchange,

authority, in opposing expansion of progressivecorporate income taxes,; also holds a 50%*• limit on,/

in

ness

preoccupied with winning
independence. Their recent

been

their

New York

John

the

on

of-the

Exchange,

Small Business Seen Chief-Victim of
Proposal
To Broaden Scope of Federal
Corporate Tax Law

im¬

as

°n Jan- 24 George Stewart &

Company,
15
New York
City,

ting

Egypt

on

Stewart^ to Admit

<

pi*

■

and

Street,

members

Arab and Asiatic world, the Brit¬
ish

ii

■

Jack Adler to Firm $<> 29 West 34 th Street, New
York City, members of the New

our
productive resources.
It essary.
will end once.and for all
We will meet this chal¬
Soviet influence in these areas. would be tragic, indeed, if that lenge because it is demanded of
On
the other side, however, it prestige now waned because of us. That is my faith, as indeed I
our
inability to meet the pewer am sure it is yours.
must be remembered that to the

Hungary

i

27

Commercial and Financial Chronicle

The
28

Thursday, January 17)

...

\957

(224)

Re-Examining Credit Policies
To Achieve Economic Stability
ADAMS*

By DR. E. SHERMAN

Deputy Manager,

stitutions

v

significant developments in
of private and public

been

the

area

policies that have importimplica¬

credit
a n

t

tions

for

nomic"

in

Our economy has

undermined

been

by

credit abuses and the general

stabil-'

industry. ,
Experience,

influence of Federal Reserve pol¬

to

credit
ized

briefly

some

of

credit today,

eralization

of

the

lems
have

some

they

they

study.

your

more

of

Dr. E. S. Adams

bank

policies,

bers

in

investments.

loans and

banks
have
remained
predomi¬
nantly conservative throughout the
past 10 years of unprecedented

sions is at least reassuring.

This

true

prior
to 1951 when monetary policy was
impotent and
the
banks
were
was

highly liquid.
gests

that

even

The evidence sug¬

this

may

constitute

In

credit

short,

in

those

two

a

more

,

b Can

The

Problem

of

Nonbank

Seventy-

cent of them answered

Even

with

control

after

allowing

this

Credit

adequately

situation?

Or

developments call for
proach

a

permanent change in the charac¬

!

ers.

this

decorous

more

:

1956?

a

to

the

a

do

cope
these

new

problem of

of

ap¬

credit

In the area of real estate

difficult

a

the

credit

academic

circles

there

is

policy.

direction

i

Could

instruct these

from

credit.

the

The

trend

preoccupation

suc¬

'■

the

the

*

111

If the
be

to

agen-

the

Fed

much

might
that

On

were

to

authority
be

other
be

in

were

price

exposed

would impair

to

WM V. FRANKEL & CO.

problem

the

litical

IN

39

CORPORATE!)

Broadway, New York 6, N. Y.

as

and

very

to

it

area,

Reserve

economy.




-

Midwest Stock Exchange

1-4040-41

NY 1-2684

And

cer¬

hand, it can hardly
the influence
Fed's "actions has always

of

the

permeated

.

some

-

that

the credit picture.

strategic credit markets,

lags have been considerable

—

1929

*

MEMBERS
>,

•

.

American Stock Exchange

k Commodity Exchange, Inc. i-y

UNDERWRITERS - BROKERS - DEALERS

TELETYPE NUMBERS:
N Y

contribution

instability might
developed had credit policy
ill-conceived or inoperative.

contended

ESTABLISHED

g

Philadelphia, Salt Lake City and Denver

po~

some

Emanuel, Deetjen & Co.
New York Stock Exchange

to:

this

during

On the other

Are the present

Telephone: WHitehall 3-3960
Private Wires

that

serious

be

System

present-day

made

has

have

its usefulness.

Employment Act

our

agree

economic 1 stability.

tainly

pressures

to what the role of

Federal

should be in

Re-

Most informed observers would

probably

These questions raise the broad-;
er

Federai

£°0<* performance?

to

been
The Fed and the

To

stabilitv

period Federal Reserve credit polhand, if icy h»s been skillfully conducted

given

this

acw

extent has the

agency

the

g

extent nas tne r eder
serve actually contributed to this

than the Federal

dermined.

ry

fa,-?

*

other
Reserve, the latter's independence might be unsome

lir

fKeFederainRServe- Treasury

>"

given

to

trving

in

powe s

on

mortgage field--and
some other credit fields

coordinating job

powers

ex^tinS

the

in

Been?

Opinions differ as to how touch
we
cart'place upon the
Federal Reserve System with its

authorities

influence

policies, of government

well?

as

Reserve
greater

Monetary

Has

Policy

reliance

agencies to fol-

policies consistent With FedReserve policy?* Or should
some arrangement be worked out
exert

other public policy-

Effective

How

be

eral

could

m

weight

-

low

bank

away

as

,

as

importance of price stability

;•.

integration

public economic

least desirable

is at

or

as a Suid6 for
.ma
rs*

achieved if Congress Were simply
.to

as

is

nonbank

great

v•-.>

adequate

in

0 g

the

efforts in this

without

but

'

cess.

well

public

reorient¬

The

Fed¬

may be fraught
It could lead to ser¬

tSw.

Federal
Council of

with

Economic Advisers has from time

nonbank

Moreover,

agencies

to time made some

Dec.

about

valid,

coordination of the credit policies
these

of

pairment of the independent statiis
of the. Reserve System.
If the
Federal
Reserve's
premise: is

policy.
There is clearly need for better

Reserve

disposition

a

area

policy-making. V

conflicts

ious

government.

the

situation

with danger.

credit

of

shown

into

Reserve

This

by

posed

Federal^Reserve

to^

counter

run

perhaps

agencies,

is

ot

policies

supervising

lenders.

problem

eral

credit,

government's policy of stim-

cies

credit

Coordination

times

at

intrude

to

of

nonbank

authorities. Moreover, the Council
has

v

for

Need

:

whereby

management?
In

to

many others have been noticeably
loss concerned with price stability than have the Federal Reserve

in

deportment

^

achiev¬

This proposition is

Council of Economic Advisers and

its

by

essential for

not universally accepted outside
the Reserve System.- At times the
Rvsfpm . At-timoc

Gr

1955?

reassured

be

we

in

credit

of

type

should

is

but

ing this goal.

experience with installment credit
be interpreted?
Should we be
concerned by what happened in

ing central banking in the. direc¬

'

ment

questions require careful

analysis of recent credit developments. How, for example, should

lively discussion

1956.

stability is not only
consistent with maintaining high
Ipit-pIc n-f r»rnr?ilftinn
c»n/~l
levels of production and employ¬

price-level

trrmhlp?

causing serious trouble?

These

tion

27,

edririiic

nuicind

from

borrowers have been able to turn

banking.

address

However, Federal Reserve policy in recent years has been predicated on the majojr pretoise that

them

prevent

to

suffice

controls

However, while .banking
has
changed
its
spots,
substandard

*An

is preserved,

volatility.
Is there danger that
swings in the volume of installment or mortgage credit may
bave disruptive effects upon our
economy?
Will existing credit

by Dr. Adams before the
69th Annual
Meeting of the American
Economic
Association,
Cleveland,: Ohio,

ter of American

by nonbank lend-

:

;

wide

available

traditional -methods

credit

the past.

than in

mem¬

types of

liberal discount for possible bias,
this evidence remains impressive,.

bank

have

easily

communities. ;

per

lenders..

reces¬

credit policies
'stabilizing—
or less
destabilizing — influence
upon our economy in the future

should

too

its

some

"yes," and
the great
majority
specified that this easy credit was
being made available by nonbank

Al¬

though 1949 and 1953-54 were not
conclusive tests, the behavior of

boom.

their

case,

it is notable that the lending and
investment policies of commercial

bank

were

seven

asked

to whether

as

credit

I

the

in

place

financed largely

of

Association

ers

believe the reverse
largely because
the generally high quality of
be

will

private

credit

ac¬

deflationary movements
than in; the past?
On the

contrary,

..

With respect
to'

the

was
clamping down olv agencies concerned with residen
credit, the American Bank¬ tial mortgages have frequently

bank

centuate

that deserve

em-

bodied in the Employment Act—
since they interpret the Act as
personal indebtedness, implying endorsement of their

Reserve

in 1920 or 1929.

»ay

banking conservatism

Will

«„

created

were

tween their aims and those

come
into
when we examine
huge increase that has taken

problems

These

lib¬

the credit policies
institutions, a current
point being the Federal
National Mortgage Association.
Last year,
when the Federal

from the

prob-

a

in

case

standpoint of credit risk,
bank assets are far stronger than

point out

of Life:

sharper focus

of bank*

tightening

of nonbank

of course, but

bank

to

In fact,

credit has sometimes led to

character¬
boom periods.
There are
elements of instability in

ments

very

icy.

which formerly

these develop¬
and

slowly, if at all, to the

only

like

certain

construction

v

has
demonstrated
that the credit policies* of nonbank
lenders
at
times
respond

terioration in the quality of bank

on

is highly inflationary—

for example, the

as,

the

I should

ment

but

money

de¬

ity.

com¬

man¬

nonbank

sure,

not. create

do

its impact

1920's.

with the
not

eco¬

monetary

be

To

times channel it into

banking
has been a stabilizing influence
in
our
economy
over
the past
decade—in contrast, for instance,
conservatism

This

for

they do activate money and some¬
areas where

velocity; Fed has not kept savings

decade there have

important impli¬

also

are

lenders

disastrous

so
.

here

agement.

and investment in balance.
Over the past

proved

in banking?

cations

has activated

money

types of
of the very mis¬

some

that

takes

There

making, and from the results of traditional credit" control
methods to date. Author finds: 1951-1955 over-all price sta¬

tight

unconserva-

process

other

with

untouched by credit policy. The need
for developing a modern monetary and financial theory is said
to stem from crucial test of Federal Reserve policy now in the

extent is deceptive;

told the Joint Economic Committee that they see no conflict be-

;

Credit Way

Our

,

in

perhaps

pressures

some

.

tion.

objectives, in spite of its faulty
wording. They obviously believe,
From
the standpoint of
ecomoreover, that the Reserve Sysnomic
stability, of course,
the tern can make its maximum conof repeating main question here is not the ab- tribution to these objectives only
financial in¬ solute level .of this debt but its if its present independent status

banking,

in

money

monetary

a

prevail among some
of the most rapidly growing nonbank
credit
agencies?
Are we

Deputy Manager Adams asserts we must study
of private and public credit policies in promoting
stability, and ascertain what must be done to mitigate

supply; and other .objectives and the independent
aggregates that we still status - of the Federal * Reserve
find in many textbooks.
Atten- fully compatible with the philos
tion is also being given to possible
ophy of the Employment Act of
new
techniques and institutional 1946?
f.
.
*
arrangements for credit regula-phe Reserve authorities have
with

policy, involve
dangers not only to bank¬
such

tive standards

the efficacy

bility to

" expansion

tively stimulating the
of nonbank credit.

prevail

25 years ago,

idle balances and money

following a policy

have been

curbing the growth of bank
credit while at the same time ac¬

of

ing but to the public welfare? Can
we
safely ignore the fact that
while conservative standards now

Federal Reserve policies, and the
anomaly of repeating in rapidly growing non-banks some of
the very mistakes that proved so disastrous in banking over

economic

We

serious

Association

Inquiring into the success of

unstabilizing

much like Topsy

Does not

Department of Monetary Policy,

American Bankers

have been growing
but .much > faster.

private,

and

CORPORATE, MUNICIPAL & FOREIGN SECURITIES
120

Broadway

5

New York 5, N. Y.

*

JjkJ\

Telephone Dlgby 9-0777

9 Rue

W71

^

w&lco.

Teletype: NY 1-1973
Cable

Address:

EMANSTOCK

Boissy d'Anglas, Paris 8 (e) Franc*

In
the
as,

Numbed 5604

Volume 185

.

laicremmoCehT.
and Financial

.

example, in consumer credit in
Even in banking, where the
impact is most direct, the actual
effect upon the. total volume of
bank lending may have been con¬
siderably less than is frequently

for

Crucial

1955.

Indeed,

assumed.

Federal

sure,

Reserve

May

Lie

Ahead

critical test of Federal

a

Reserve policy
may now be in the
making. It the current boom con¬
tinues and if the Federal
Reserve

adheies

strong

be

To

Test

Chronicle

to

its

present

demands
the

cause

for

course,

availability

substantial '-rise

by 'a

Indeed,
accompanied : by •
rates has clearly
activation of idle
.

intensive

more

money.*;

in

money

credit restraint
higher -' interest
stimulated the
balances and a
utilization

of

>7:7' •:7';

-.;'Vy

Policy

bank

of

difficult.

Moreover,. throughout

this

pe¬

rising interest rates have not
discouraged demands for credit as
effectively as some textbooks sug¬

In the case of business bor¬
'high
tax
rates
make
borrowing cheap at any price. In
the case of consumer credit, now
more
important
than formerly,
what rates they pay.

Also, in this age of institutional¬
ized savings, rising interest rates
longer strengthen the incentive

no

to save as much as some theorists

claim.

During the current invest¬
ment boom, it has become clear
that Federal Reserve credit policy

is

not

efficient

an

instrument for

keeping savings and investment in
balance.

'

•

-

mount

to

Fed

avoid

validating

cost-price s p j r a 1
further .inflation?;'
if

the

1951-55
tive.

was

Sir

the

been

ing

in process

years we

inflationary habit of rais¬
faster than gains® in

our

ing

prices.
have
of institutionaliz¬

these

wages

overall

past

productivity.

» Over , the
the
Federal
prices
have

despite
Reserve's
efforts,
again been rising.
year,

It is hard to say
all

the

credit

question

of

tolerance

the

these

factors

terms of the effectiveness of Fed¬

eral'

policy.
They
underscore the fact

tainly
credit

the

economic stability.

gest, it
to
as

seems

know
to

that

They also sug¬

to me, that we need

more

than

do

we

know

How

afford

to

far

it

affect the credit
ous

financial

saving- and

policies of vari¬

institutions

spending

the

and

without

it?

They

need for

and

may

various

of

also suggest a

developing

fully

an

articulated

up-to-date
theory

of

monetary and other finacial poli¬
cies.

lie

support

policy.

for

Federal

Bankers,

know much
are

Reserve

for

example,

about

more

ject than they did

the

years

sub¬

and

ago

for the most part staunch

now

supporters

of

flexible

monetary

policy and of the independence of
the Federal Reserve.

Opposition

to

other

some

Credit

strong

opposition

restraint

powerful

are

persists

politically.

particular
individual

and

in

doubtful
a

Quanti¬

credit

markets

industries.

-Borne

they are being unduly
for the sake of rather

for

benefits

to

the

economy

whole.

One

in

case

point is the market
guaranteed

government

mortgages.

and

inflexi¬

The

bility of interest rates for these
mortgages has at times caused a
dearth of funds in this market and

this

has

What

enable private

and public credit policies to con¬
tribute more effectively
to eco¬
nomic stability? (2) what should
oe

none

in other

unstabilizing
credit

areas

to

Dahlberg

policies

alone

cannot

the

of

name

Dahlberg

Henry

Company for

1

office of Howard,

has

in

gage

Road

Building

to

en¬

securities business.

a

vigorous

aroused

and

sissippi

Opens Inv. Office

to achieve economic sta¬

Suzanne

S.

from

Street, New York City.

a

offices

at

by

'

Dean Witter to Admit
SAN

FRANCISCO,

Calif.—
Dean Witter & Co., 45 Montgom¬
ery Street, members of the New
York and Pacific Coast Stock

changes,
Howard

on

Feb.

1

will

J. sNammack

to

H.

away

ly

Graham, partner in
Oliphant & Co., passed

Sr.,

with the 35-year-old

a

ness

native of Vicksburg, Miss.,

in Providence af.ter.-38 years

in order to assist in the

limited

Opens

Should

Tex.; — Martin L.
conducting a securi¬
ties business from offices at 2308
FT.* WORTH,

partnership.

Davidson

New York Stock

Exchange
Weekly Firm Chang es

The New York

Stock

is

Glore, Forgan Adds

Linda Lane.

Glore,

Forgan

garded

a

as

Harris, Upham Adds

and other leading

sharply during
with

ance

Or

trine?
a

marginal
a

type

CHARLOTTE, N. C.—Emory F.
Mendenhall is now with Harris,

has

Meaney Jan. 4.

Upham & Co., Johnston Building.

firm in the foreign

(Special to Tiie Financial Chronicle)
announces

that George Wall Merck

become

associated

re¬

of

boom, in accord¬
banking doc¬

central

it

would

practical

be

matter

desirable

provide

to

flexibility of rates on these mort¬
gages to induce a more even flow
of credit into this market?
And,
incidentally, if

so,

how?

public at large still remains

Private Wires to:

We Make Markets

»

Glore, Forgan & Co.

Chicago

Gotiron, Russell & Co.

Cleveland_

Dallas Union Securities Company

__RaAer, Simonds & Co.

Detroit

Coburn and Middlebrook Inc.

Hartford 1

eyfc'tc

Over the Counter

€>/■ ^>ana(/aj

Los Angeles__

Philadelphia
Pittsburgh

2%^

1

.

Securities

St. Louis

Uy-Harbison & Henderson
H. A. Riecke & Co. Inc.
Arthurs, Lestrange & Co.
Fusz-Schmelzle & Co.

#

Copy of Annual Report to
on

Stockholders

request

Troster, Singer & Co.
Carl M.

Members Tsfeu;

Yor\ Stocl{ Exchange

Leading Stoc\ and
42

Members: l\ew York Security

Loeb, Rhoades & Co.

WALL STREET

Private Wire System to

their connections in 90




and other

^

74

TRINITY

TLACE

Dealers Association

NEW YORK

fi, N. Y.

Commodity Exchayiges
NEW YORK 5,

N.Y.

Branch Offices, Correspondents and
Cities throughout thej United States

Telephone HAnover 2-2400

Teletype NY 1-37G; 377; 378

with

the

department.

curtailed

be

40 Wall

stock exchanges,

Exchange
following firm
changes: Jack Feinsinger retired
from
partnership
in
Long
&
has announced the

Co.,

com¬

mortgages be

should

that

credit

The

available

&

Street, New York City, members
of the New York Stock Exchange

+

these

operation

of the new branch.

plaints from the powerful building

industry.

will

father, Malcolm D. Raworth,

who retired from the cotton busi¬

-

M. L. Davidson

of

firm

Ra worth in the Natchez office

Ex¬

admit

investment

dissolved

D.

Jan. 8.

La¬

Tullis, Craig and Bright.

be his
Jas.

Weil,

the Natchez branch of the recent¬

-Donald D. Graham.
Donald

Howard,

Raworth, Jr., formerly Manager of

57th

West

329

was

bouisse, Friedrichs, is Malcolm D.

Ryder
Cornell is
securities business

conducting

to formulate workable solutions to

r m,

of the Natchez office,
be established in Mis¬

Manager
the first to

bility, there is urgent need really
to face up to these problems and

f i

investment

opened on Tuesday, Jan. 15, in
Natchez, Miss. It is the fifth of¬
fice established by the firm, and
will be located at 325 Main Street.

Fla.—Eliot R.
opened offices in the

Dallas

/

Orleans

—
A branch
Weil,. Labouisse,
Company,
New

Miss.

NATCHEZ,

BEACH,

Lincoln

•

Opened in Natchez

&

Friedrichs

Weston

>7:

.

Howard, Weil Branch

many years.

in

$

Co.

Eliot Weston Opens
MIAMI

Company,' Incorpo¬

Illinois

rated and McMaster Hutchinson &

Tucson; under

in

business

ment

con¬

developments
of
recent
years which we have here briefly
considered point up the strategic
importance of these two questions.
are

$6,220,000.
offering are
Company;
Shearson;
the

Gregory & Sons; Ira Haupt
Co.; Wm. E. Pollock & Co. Inc.;

The

J. A. Hogle
New York
Stock Exchange and other leading
exchanges. • Mr.
Dahlberg
has
been conducting his own invest¬

which

The "

we

Henry E.

„

mitigate

p r e s s u r e s

trol?

If

&

mitted to partnersip in
& Co., members of the

(1)

emerge:

done to

allwhich

pany;
-

a

groups feel

penalized

be

cars

Hammill & Co.; Freeman & Com¬

impediment

have touched upon, two broad

should

freight
in

Associated

tative credit regulation has proven
to be quite uneven in its incidence
upon

re¬

Mean¬

Restraint

Nevertheless,
credit

we

Commission.

estimated

an

&

Baxter

potential usefulness.

problems

is

standard-gauge

new

gondola

will cost

public toler¬

real

800

steel

them.

Progress has

number of quarters, some of which

•

-

;

•

Some progress has been made
in recent years in
generating pub-,

as

groups.

prudently

in exercising its in¬
jeopardizing

go

dependence

can

audi¬

a

Commerce

Associates

From all of these considerations

collision'

nationwide

a

policy.

certificates

the

of

The certificates will be secured

to

Two Overall Problems

.

Federal

monetary

the limits of

constitute

to

wage-cost-price jugger¬

ence?

how, under present-day con¬

ditions, the Fed's actions actually

of

head-on

a.

before

cer¬

policy alone cannot assure

while,

•

risk

insured

Reserve

limits

respect

with

stringency. Can the

Reserve

as

precisely what
add
up
to in

a

to its

spiral continued; to
to operate, though its effects were
by declining farm

Issuance

subject to authorization of the In¬

.

needs

and
$4,-

G, due Jan. 15, 1958-1972,
inclusive, at prices to yield from
4.10% to 4.50%.

policy instead.

be done to educate the public

garding

is

public

Throughout this period the

over

and

therefore

more

11

series

they will be hap¬
long run witn a re¬

political football.

a

Much

J

ance

to some extent decep¬

masked

become
-.

Inc.

offered

Co.

&

Jan.

on

875,000 of Missouri Pacific RR.
4,/2% equipment trust certificates,

they

houses

Stuart

associates

possi¬

wage-

inviting
""

Galahad,ap4

-

In

Halsey,

1

ad-

During

strictly economic standpoint, there

wage-cost-pfice

fact,

a

and

been
made
among
we can probably agree
groups as well.
overall price stability yf.

the

be

to

know

dream

Feb.

that

cars

pier in the
strictive monetary

to

were

the money sup¬

Finally,
that

buy

matter

easy

who

On

will

—

Dahlberg

E.

Henry

by

naut

care

no

Ariz.

TUCSON,

Halsey, Stuart Group
Offers Equip. Tr. Clfs.

bility that monetary policy might

to

in. order

with

nor

rates
more

,

t

credit

the

ply

rowers,

neither know

to

dream

is

people

'

squeeze, would this not be tanta¬

if

on.

gest.

borrowers

It

i < l

being

interest

when

*

Partner in J. A.

and

are

borrowing becomes

persuade
want

credit

they

*

terstate

hand,

ploaeh may be justifiable from

riod

victimized

of

users

that

Dahlberg to Be

issue and the election results have
not dispelled the ominous

other

relax its reins

'Even

1

feel

many

H. E.

the past year '.'tight"
inoney became a major campaign

Limitations of Monetary

Other

become

now

rise and

policy has succeeded in restricting credit to become much
tighter
the growth of the money supply. than it is at
present.
But just how significant is this?
;Should the F e d e r a 1 Reserve
Even from the standpoint of quan¬ .permit such a
situation to develop
tity'theory, the curb on' money or would it be too
dangerous from
supply has been partially nullified an economic
standpoint? On the
velocity..

generally uninformed and unenthusiastici about monetary policy.
A large part of the
population has

could

credit

29

(223)

>

The

Commercial and Financial Chronicle

Thursday, January 17,

,,,

1957

£2 I225J; 1
that gold should

it entirely proper

Standard

Why We Need the Gold
FREDERICK G. SHULL

By

determining the relative values of
all other commodities and serv-

amply proved it¬
standard-ofpeoples of the
earth?
The answer is definitely
Yes—as evidenced by the fact that
England's
pound
sterling
was
firmly attached to gold through¬
out the 18th and 19th centuries,
self

L

of Princeton, to help show there was no need
S. A. to go off gold in 1933, and to repeat his advice

merer,

U.

k

we

Grover

made

by

Republican" viewpoint
which make

possesses

From time immemorial

been
of

been true for at

that

as

serve."

in the Book of

Genesis
least

at

Book

of

hua

Jos¬

and

in

stated

dozen

11

f

t h

G. Shull

Frederick

New

Testaments

to

the

times

I

It

am

likely

seems

these Biblical facts played

value

fact

the

it

that

Its

about

comes

requires

a

it — unlike the seasonal
changes which affect the values

that

sure

of the great

majority of commodi¬
In fact Mr. Carnegie drew

ties.

that

the

real

a

the

the

North Star is the most firmly

part in prompting the leading

fixed

na¬

that whereas

comparison

in its

position of any of the

tions of the world to establish the

heavenly bodies, about which the

values of their currencies in terms

others

revolve,

nearly

fixed

of

a

per

definite

weight of fine gold

unit of currency.

And it

A

1

leading

com¬

the

on

gold standard. And as re¬
as
1931 a famous' British

cently

committee

of

eminent

14

econ¬

dered

which they
important sug¬

in

report

a

voiced

this

very

gestion:

the

may

gold

is the most

value of

in

any.,.of

commodities; and he deemed

"There is.

perhaps, no more im¬
portant object in the field of hu¬
as

technique than that the world
whole should achieve

a

and

scientific

But there
of

monetary
be little

can

at

sound

a

system.

or

hope

no

early date for
the monetary system of the world
as
a
whole, except as the result
progress

^f

a

an

of evolution

starting
from the historic gold standard."
process

then

did

we

Standard

off

go

in

is

any

is, there

answer

1891

J

•

1957

'CONNECTICUT

for

son

'''

'i

but

in

ac¬

we

In

■

times

recent

hearing

have

we

been

lot about "Modern Re¬
publicanism."
This
so - called
a

attempting
theories

new

have

—

drawing attention to
opinion and
practice

both

that it is

that it is

not

As

just two of

our

issue,

dential leaders, Grover Cleveland
Theodore

our

Roosevelt

the
New

Magazine
Section
of
the
Haven "Sunday Register," Grover

Credited

Cleveland is

Theo¬

by

other

and

Repub¬

right down to 1933—
might be called the "Model
of Republicanism, par¬
ticularly as regards what consti¬
As

in

Republican¬

espoused

as

what

tutes

appeared

with having

"upheld the gold standard almost

honest money.
Babson has wisely said,

Mr.

"The great financial need

national

a

.

.

educational

to teach

.

today is

campaign—-—

the American Voter

the honest truth about inflation."

The

SECURITIES

> sa.-■?■;■..

masterpiece

v

'

i

J*

' !'

-

'■

-■■■<

;

Yf

"Gold

Investment Securities

last

of

And

paragraph

Kemmerer

wise

A. E. Ames

War

do

at

to

as

the

this

bit

what

close

of

UNDERWRITERS AND DISTRIBUTORS

we

'

'

'

II:

A.

f

"Finally, the United States

own

Chas. w. scranton
MEMBERS

NEW

YORK

STOCK

go.

&

should

the

Hartford: JAckson 7-2669
\

Teletype NH 194

make

that

"•

•

>•

'

"

■

.

E. Ames & Co.

OFFICES IN 14 CITIES IN CANADA AND ENGLAND

war,

object of

A. E. Ames & Co.

gold

a

formu¬

Incorporated

lating plans for the restoration of
an international
gold standard and
for
international cooperation to

Telephone: MAin 4-0171

"

coun¬

desiring to return to
with

'

■

international

an

monetary conference of all

basis,

NEW IIAVEN

New York: REctor 2-9377

gold standard after the

and

tries

EXCHANGE

■

Members Toronto and Montreal Stock Exchanges

*

should promptly declare
intention
to
rehabilitate its
call

'

Gov¬

ernment

its

• '

•

World

'

Inquiries Invited

& Co.

Limited

of that book

offered

advice

in

in the

.

should

\S

H

and

published

(McGraw-Hill).

Prof.

jwr*

LJr

w<

Standard"

verv

,

Canadian

our

Kemmerer, of Princeton,-in his

1944

A
/
IUAA/

rea¬

greatest monetary expert of this
2Qth century, the late Prof. Edwin
W.

«.

valid

So said

so.

standard

New York

Boston

better

a

standard."

•

BUSINESS ESTABLISHED 1889

Well,
over

World

for

War

several

trary to the

has

been

and.

con¬

II

years

sound advice of Prof.

Kemmerer, the United

States

con¬

tinues to operate with the dishon¬

i

est

PONT

BUILDING

—

WILMINGTON

TELEPHONE
MEMBERS
OTHER

NEW

OLYMFlA

YORK

STOCK

PRINCIPAL STOCK &

STOCKS

—

BONDS

—

restore

EXCHANGE

en

&

a

OFFICE

—

BROAD

—

120

Bell

N.

J.,

OFFICE

—

160

W.

AVE., NEW HAVEN 6,
TELEPHONE SPRUCE 7-6851

same




*

14 Wall

dollar

the

Street, New York 5

105 West Adams

"Chronicle"

Wire connections

all

of

kind

of

Stock orders executed

naper

need

little.

today

any

The

is

Printed

campaign

the

flation."

QUEBEC

SAINT

both

And

Mr. Babson

has

in

LONDON, ONT.

OTTAWA

REGTNA

-

.

VANCOUVER

LONDON. ENG.

HAMILTON

EDMONTON

CALGARY

KITCHENER

VICTORIA

and

parties

by

honest

JOHN

WINNIPEG

educa¬

combined, to teach the American
Voter

Exchanges in Canada.

l

MONTREAL

financial

national

a

all

Limited

TORONTO

government

great

on

Wood, Gundy & Company

promise to

money!

Toronto, Montreal,

of

HALIFAX

by

Street, Chicago 3

affiliated with

our
a

to

Winnipeg and Vancouver.

Mr. Babson said:

anything for it, except the

promises

tional
CONN.

"a

goM >^asis."

us

DAY, STODDARD & WILLIAMS DIVISION
WHITNEY

to

Wood, Gundy & Co., Inc.

to

but the government will not

mean

BROADWAY

Platform

give
I

STS.

us

pay,

Teletype NY 1-1248-49

ZURICH, SWITZERLAND

44

in

"Practically

BROADWAY

CHESTNUT

on

1933—even

Quotes Mr. Babson

Stocks

Telephone—LOcnst 7-6226
SALEM,

1952

currencv

Oct. 25, 1956.

PHILADELPHIA NATIONAL BANK BLDG.
AND

its

money has on its face

Telephone—B sir day 7-3500
PHILADELPHIA OFFICE

in

our

appeared

✓

YORK

in

fully convertible

Christiana Securities Co.—Common & Preferred

NEW

saddled

type of money is well de¬
scribed by the authoritative Ro<*or
W. Babson in his article which

SPECIALISTS IN LOCAL SECURITIES

Bank

Deal

That

EXCHANGES

COMMODITIES

Wilmington & State of Delaware

money

New

promised

8-4241

COMMODITY

the

though the present Administration

DELAWARE

99,

paper

bv

Laird, Bissell & Meeds

truth
a

this

about

later
to

say

in¬

article

about

Wood, Gundy & Company
"

\

Members of

The Toronto Stock

the

lican leaders

the

In

fashioned"

such

Presidents

Rossevelt:

biographies
of
which
recently

to

T. R." type

Presi¬

great

"old

dore

prov¬

party

a

least

it

apparently has no
criticism of the printing press pa¬
per-money initiated by the New
Deal
in
place of monev main¬

the

national issue, we need

a

that

ism,

and

Democratic

common with

tained "as good as gold." My pref¬
erence
would be for a return to

by- this, nation,
with
exceptions, from the found¬
ing of the nation right down to

minor

under

great deal in
Dealism"—at

extent

to

as

a

"New

to

the

1933?

was no

doing

our

moneary
the Gold

DU

what

regard as
principles of na¬
morality and wisdom.''

tional

followed

and

centers,

the fundamental

that

constitutes sound money

monetary

cite

mining

cordance with

he is merely

ing

shifting conditions
production of gold in cer¬

the

-

Primary Markets in

i

not

Republican leadership.

Committee

Report and Prof. E. W. Kemmerer

man

initiate

1933

Cites Macmillan

in

tain

of

"modern" Republicanism seems to

Babson

what

matter

a

expediency,

gold.
It should be borne in mind

Mr.

So long as the Republi¬
is in power the gold

not because

claimed value of $35 a fine ounce
of

we mean when
honest and stable

an

standard is settled, not as
of temporary political

presently-

the Gold Standard at its

party

can

they should be among the first to
demand that the American Dollar
to the honest basis of

And

nation."

-

currency.

leth¬

this

of

speak of

we

the

insurance companies

ashamed

be

And

"We know what

while

But

be restored

mercial nations of the earth were

.Why
.

been -in¬

ever

th°

of

all

Gold
.

this

'

on

tic^llv

acquire

could be added

more

list.

of

honesty is

the first essential."

as

their part—this failure to
lift their voices in support of the
interests of their customers; for

fairly definite amount of effort to

e

chapters of both the Old and the
many

metals and commodities.

from

through
o

be briefly
freedom from corrosion,

stability

to

were

scan
a

as

mon

And if

such

argy on

divisibility, and its scarcity omists and financiers, known as
compared with the more com¬ the "Macmillan Committee," ren¬

or more

times.
one

a

as

has

as

should

piece of

Dollar in 1933—as great a

inflation.

from

Bankers and

of

ease

Kings

a

as

standard-of-value may

the First Book
of

serving

for

material

best

a

flicted

the

currency
is
the
symbol and expression
of honest business life. A
perma¬
nent system of assured

estate

real

Certain

,

commodities,

some

natural resources, may for a

throughout the 19th century prac-

gold possesses

which

given

fine

dishonesty

•

•

,

their re¬

which make it stand, alone as

three

times;

■

Qualities

e

and

honest

strongest

great mass of honest people will
ultimately suffer and President
Eisenhower will not prevent it."

fact that the American dollar was

For Over Two Centuries

y"

three

times; in t h

standard

gold, which

is

civilized nations have as

such

employees.

until the New Deal debauched our

world's

Theodore Roosevelt's Views
"An

most banks and
insurance companies are adopting
automation to get on with fewer

sterling from 1821 to 1914; by the

the banks of

fact that it
men¬

'phoney' money, but they will pay
with 'phoney' money. Wages

tionship between gold and silver,
and never again tampered with

has been

Roosevelt, one in 1902 and
the other in 1904, these
selections
both hit the nail on the
head:

will increase, but

benefit

is in itself the
of value, and

it

because

value,

Theo¬

dore

insurance com¬

out

value of 24.75 grains of
gold
per
dollar in
1792,
dropped slightly to 23.22 grains in
1837 to bring about a 16-to-l rela¬

witness the

alone" in the early 1890's.
And in
the .published addresses of
,

panies need not suffer. They re¬
ceive deposits and premiums in

rigidly maintained
at 113
grains of fine gold per pound

prompted Andrew Carnegie
to say, in 1908:
"There is only one substance in
the world which cannot fall in

as a commodity
Certainly that has
least 2,500 years—

,

and

have

gold has

recognized

great value.

tioned

for
that

Mr. Shull compares
Roger W. Babson, Andrew Carnegie,
Theodore Roosevelt with the modern
of today, and describes qualities gold
it the best available standard-of-value.

Cleveland, and

best

the

be

to

,,

"The banks and

value known to the

ought to return to the gold standard.

observations

are

And has gold

scholar cites the late Professor Kem-

Haven monetary

New

questionable paper money we
using todays
♦

the

for

the standard-of-value

as

ices.

Connecticut

New Haven,

serve

Exchange

Montreal Stock Exchange

Canadian Stock Exchange

Number 5604

185

Volume

..

The Commercial and
Financial Chronicle

.

industries. The insurance business
is

By ROGER W. BABSON

interested in

lup

Poll on six questions of where
live.

to

Gal--

a

answers

"Most
ful

Beauti¬

State"—or

"which

is

the

Healthiest"

the

best

winter

•

T h

s

for

a

or sum¬

vacation."

mer

to

—

"-which .i

o r

e

answers

all

these

1

questions

are

most

interest-,

in g.

,»

I, how¬

ever, am not

qualified

Roger W. Babson

Of t h

Mr.

questions,

Gallup

choices.

ten first

gives

Based

i

s

x

the

the

upon

Averages (in which I have

great

faith),

states

appear

of

most

e

the

the

following
the

in

six

nine
to

answers

questions.

income
more

the

opinions of

thousands

I

friends,

b lieve

honestly

every
sesses

to

of

one

48

our

to

means

should

reader

continue

the state where he is

—Let

Us

Look

Statistics

at

show

to

in

located.

now

we

live.

from
upon

a

and

The

joy

where

upon

which

get

we

vacation depends far more
meet than the

we

$cenery we see. None of the things
which

really wafttfcairbe

we

chased with
I

ity

however, shouiu

be an author¬

the best places to get

on

If you

mean

NOW, the

"probably Southern
wherever
cated."

will

ployment.
a

California

when

World War III is

In

suffer

is

fear

these

much

of

same

unem¬

and

taxi

drivers

of

Los

An¬

How-

One

Reporter

total

in all 48 states.

by moving.

get

can

in

dollar
with
and

is

for

just

the

dren.

a

keen

as

World

Of

course, the
varies with

land

Probably

the

speculation
States

future

different

best

of

states.

purchases

for

in the West Coast

are

the

and

value

Southern

States.

In

making purchases of homes,
however, put more money into
the

land

rather

than

Well-located

of

this

into

land

in

wonderful

continue

to

the
any

country

become

Bank

latter

issues

have

sharply
of

last

from

constantly spent to keep it

up

to

date.

all-time

of

issues

corporate

of

To those who

are

I suggest

investment

city

consider for

employment

or

of

of

one

None of these 48

the

cities

capi¬

a

48

states.

have

ever

employed by the various state de¬
partments, there is
employment
sion.

Due

very

during

little

Governments. The

offerings
bonds

a

which most states have adopted—
almost

family feels

every

secure

about its old age or the possibility
of sickness.. Most

is the

fact

lected

that

from

important of all

taxes

the

be

can

Entire

col¬

state

to

support the capital city, whatever

general ..business

conditions

the

state.

They

are

rapidly

Your children get

growing.

as a

These like¬

by taxes from

a

good "boy

or

the

can

industrial

investors

in

the

affair,
a

it

can

readily

dealers.

This

also

a

favorable

money

market factor.

in

the

long-term

.

Government

bonds.

months

of

Still

to

pears

control

be

as

still

far

in

Charge

element

much

very

the

as

there

(since

the

been

minor

a

in

long-term

obligations are
despite tne reports

has

,

ap¬

though there has been

Even

with

first

of the year) of
buying largely from
pension funds. Nonetheless, until
yields become more realistic ill

bonds, " compared with
non-Government bonds, there will

Treasury
be

tions

a

of

lasting change in quota¬
the

of

buyers,
supply of
creased

although
these

somewhat

refunding

to

tax

have

the

se¬

plenty
floating

issues -has
because

in¬

of

the

anticipation" bills

that

have recently come into the
market.
The
intermediate-terms
have

been

getting
proved buying.

im¬

somewhat

ties,

the

of

most-

due

bonds,

been

to

rally

substantially from their lows, due

The

near-term

The

capital market is the ope
competes with the long-

which

Government

bond
market,
being, it seems
as though
this competition is not
going to be lessened at all. The
demand for funds for capital pur¬
term

tions have been using liquid fund j

build

to

bills

bills.

is

still

case

for

As

long

as

then*

the

very

large and

that

are

the

some

months to

spot,

most

is,

that

downward
reason

for

come,

the

situation,
Treasury

a

subject

Head Office:

Dealers' Association

355 St. James Street

Branches in the

to

with

compete

vulnerable
to further

of

supply

•

concerned

as

far

bond
is

the

are

more

Intermediate-term

have*

available in corporate and tax

bonds

exempt
those

been

amount

compared

with

available in Federal obliga¬

of attention,

certain

mercial

among

been

The

in many
of

the

'

,

which

ury

25

Broad

Street,

New

York 4, N.

Y.
455

Teletype NY .1-4358

140

Federal Street;

Boston 10, Mass.

Craig

St.

UNiversity 1-5886
Direct

New

York,

Boston,

wire

connections

Montreal,

the

sale

of

Traded in New York in

Montreal Stock Exchange
American Stock Exchange

Broadway

NEW

YORK

WHitehall 4-8974

Royal Bank Bldg.

TORONTO
EMpire 4-6407

between

Toronto,

Ottawa,

Kitchener, London (Ont.), Winnipeg, Calgary




61

W.

MONTREAL

Hamilton,

and Vancouver

Direct Wire

Connections

-

maturi¬

has

bbey

obligations has evidently corny

from

Nesbitt, Thomson and Company, Inc.
Telephone HAnover 2-8875

1961

going into the middle-term Treas¬

MEMBERS

Exchange

that

of these purchases. Part
money

CHARLES KING & CO.
Exchange

com¬

ties appear to be the favored onej

all Canadian Exchanges at Regular

or

those

jnaking commitments

STOCKS & BONDS

principal Cities of Canada

Stock

modest

mainly, from

out-of-town

banks

of Canada

Canadian

advice^

a

the smaller institutional investors,
with

United States Funds

Stock

to

getting

longer-term

Government securities.

tions.

on

Government

according

securities,

iri these issues.

uncertainty

!

19*61 Maturities Being Absorbed

the

favorable yields which

Executed

Toronto

near-term

funds.

have

Government

had

weekly

the

offering of Treasury bills for thy
available

of benefit to

W., Montreal

>

received, but this issua
added somewhat to the floating
supply of short-term securities.
Also, since they were not payable

Limited
Investment

over"

well

was

Nesbitt, Thomson and Company
The

"roll

recent

anticipation bills (to refund
maturity), due in time for th 5

a

participate in Canada's assured growth.

of

anticipa¬

of tax

price adjustments. The

long-term

as

be

distant

this

is

the

will

this

obligations will be in

selecting suitable investments through which to

Members

tax

and

The

in

positions

their

up

Treasury
tion

and,^ for the time

Commission Rates

be of valuable assistance to those interested

for

market

Treasury obligations has been oil
the improved side, since corpora¬

non-

Orders

level*

reach

issue of tax anticipation bills

Competition From Capital Market

quotations

able

bonds

in line with non-Govern¬

are

ment obligations.

Government

have

¬

tions.

much

market,
es¬
pecially the most distant maturi¬

of -corpo

exempt bonds. Thi i
when yields for

through the tax and loan account
of
the
commercial
banks, they
well as some agency ac¬
went at a
much higher average
counts purchases, these securities
yield (3.305%), than was the case
are not out of the woods yet, and
will
not
be, unless there
is. a of previous tax anticipation of¬
change in money market condi¬ ferings by the Treasury. This nev/

are

The

Government

that

issues

new

attained

be

as

indications

Government

continue

and
first

year,

mainly to public, and to a lesser
extent private pension fund buy¬

poses

Treasury issues.

The short-term

curities

will

amount

investment

not

demand

improved
certain

a

con¬

that

the

payment of June 15 income taxe

'

somewhat

ing,

professional

the

rather wide price gyrations which
are witnessed every now and then

Government

is

for

accounts

for

year

a

small and thin and as
be whipped about
by
traders
and

very

result

very

Oa

for thy

case

girl friend."

also like cities which have

development of Canada and

be

—as

OPPORTUNITIES IN CANADA
Our facilities

covering,

buying, * and
a
quoting
up
of
prices. The long Treasury market
is still very much of a professional

CANADIAN

in

to

seems

col¬

a

low cost

short

some

reasons,

modest amount of investment

very

distant

Universities

also to be chosen.

wise are supported

namely,*

of

around

Governments Rally Slightly

Cities having State

supply

the

as

going to continue to be heavy, ami
this

basis

combination

a

sharp contrac¬

may

be elsewhere.

to

tion in loans since the end of last

un¬

depres¬
pension systems —

even

to

re¬

undoubtedly had a favorable ef¬
fect on Treasury bonds. Also a
special situation, such as buying
from municipal sources for tem¬
porary investment tended to buoy

cerned,

determined to

you

to

good

Government
Three Recommendations

I

the
The

recent

new

on

able

given to

The

well

still

though the

been

week.

Professionals

all

bonds

even

more

from year to year; but
house is becoming less valu¬
able each year unless money is

are

ever,

keeping Government securities

valuable

tal

as

the tax free

ception

.

Governments

on

investor's

the

corporates,

the

lows

a

long

as

rates and tax

Competition

rally

the latter is

sure

Also,

non-Government securities iff

then tha
attraction for Treasury securities
will come only when they havo
been put on a real competitive

By JOHN T. CHIPPENDALE, JR.

better

am

directly after lege education at

previous World War, 80% of the

bus

the

family of chil¬

or

lo¬

are

the

over

fact,

job.

a

answer

airplane plants

But,

sections

pur¬

railroad ticket!

a

Our

more.

death

NOT

the people

work is

Record—- defaulted on their m u n be i,p a 1
bonds. Owing to the large nVimber
rates

the

that

live

and health conditions depend 90%
on
the heritage,and habits of us

individuals

that

same

place to bring up

six

every

as

has

Competitive Basis

on

Essential

six

but I

move,

that,

me

cities.

such

the uncertain side

advantages mentioned in this poll.
This

of

more

cities

Every state

Miami, Florida,
than in
Bismarck, North Dakota;

pos¬

the

all

of

,

that

states

extent

some

or

any

'Based upon my extensive travels
and

one

cities, but such

indicate

comforts

part

>

such

is

Yields

first quarter of 1957, at least,
it could well carry into the

Again I say that in the
long run
a
family does not better its total

should

.

some

about the

are

California, Florida, Colorado,
Oregon, Texas, New
York, Michigan, and New Mexico
~

college

in

Hartford, Conn.

yearly 'take home" wages, ad¬
justed according to living
costs^

Washington,

.

be

likely to fluctuate

Statistics

are

,

to

higher when

are

is

house.

Arizona.

said

,

good

Business

.

plentiful in
work

These

or

good illustration

always

were

Wages

to

thereon.

pass

a

your
future depends upon
rather than upon w*here you
are
located.
Hence, my advice
is to avoid being a "rolling stone"
but make good where you now
are.
1

ever,

you,

Wages and Investments

—which is the

»

Law of

geles

graduates.

I will not discuss the
to three of these, namely

&S

(227)4

fluctuating but constantly growing

Where to Live
I am much

1

TORONTO, NEW YORK, MONTREAL

Commercial ciud Financial Chronicle

The

32

Ideal and Working Concepts
Of Full Employment
Former

the

Economic Advisors' Chairman reviews

.

principle.

capitalist or labor groups, and
that productivity gains be translated predominantly into lower
prices in order to maximize real purchasing power and employ¬
ment on a maintainable operational basis of free competitive

use.

interpretation as such
the Employment Act of 1946 has general abundance of jobs or such
served to uncover many complexiamelioration of particular tinemties that inhere in the mere conployment situations as will quiet
cept of full
political unrest or promote party
employment
flHHMHH success. Likewise, with our long
quite
aside
reformist tradition, it is bound
from
the yet
also to be widely interpreted in
greater com•
sociological or moralistic terms,
plications that
stressing the* belief that, under
technology, it is outra¬
"want amidst plenty,"
or any would-be worker denied an
opportunity to produce as fully as
he can and will. These political and
modern

at-

the

beset

geous to see

tempt actually
to

such

reach

goals

we

as

up.1

set

may
We

need

aspects

the

it

in

Edwjn

G

Even

Nourse

of

employment

in

It must recognize, but not
fixed, the institutions
mores
of our system of
free enterprise and representative
government. So oriented, it will
envision
goals
high enough
to
gratify our socio-political aspirations

the

as

the

and

but

also

be

limitations

at any
ment.

so,

with

consonant

of

means

existing

given time for their attainThus my title links ideal

wa

on

the

litical concepts on the other hand

ignoring

or

dis-

paraging the latter. It is only nat-

:

,

n=cfi^e2
o

hand and sociological and
po-

—without either

_

nance of a sociological criterion is

,

enUate bohvcen
cepi of full employment

ac£pted

widely
persisting in

at the
social

a

t^'^j

quarters today.

many

starting from

ethical

or

principle, he focused his attention

ence

A™}n5

27

the

subjective state of the in'

remains even if most people

unemployed for only relative¬

are

short periods. . . . The shortterm
unemployed do not know

ly

that

'

i

'

absence

of

only

or

industrial

or

is

work

tive matter.

a

ob¬

Able

sense,

decidedly rela¬
to work
steadily

intermittently?

kinds of work

they

short-term

are

unem¬

and

At

for which

the

the

demand

implications of such a defi¬

The

quantitatively

qualitatively.

and

ways'^ and "so located that the
unemployed men can reasonably
be expected to take them" it calls

determined by
or by a fore¬

It seemed to fore¬
a^Provident State whose special facilities or treatment? ;
Equally rich in ambiguity is the
political pressures would super¬
sponsibility.

bargains

commercial

market

nition of full

as

doctor's certificate

man's report? Under standard shop
or
office conditions or only with

shadow

sede

-

.

a

"remunerative" employment
Government should accept re¬

over.2

"

ity? Able to work

for whose full

labor force

the

of

ployed till their unemployment is

The

.incentives.

Act

ment

companion

and

of authoritarianism

facilitation
tem

thkt

of

an

enterprise

willing

sys¬

useful

em¬

"afford

will

willing,

:

those
seeking ... to

and

to

was

might be get¬

at such jobs as
only at the job
Willing to work

work

available

are

or

of one's dreams?

ployment opportunities for

able,

It

ting his nose under the tent of
free enterprise. But does it mean

basis by defining the
Government policy
as

practical
goal
of

willing.

as
a
gesture of reassur¬
ance to those who feared the camel

finally passed sought

as

term

inserted

Employ¬

to shift the matter back to a more

on

time

a

schedule

employers'

work." Emphasizing the

shift from
sentimental to operational criteria,

all

by

not

being

wanted

at

not all the time but also

or

needs

or

dictated

by

by workers'

convenience?

revolt

not

come

merely to. the

un¬

millions

of

those

have

who

or

jobs

but "feel that

convinced that the search is hope-

progress.

by
being wanted intensely enough.
Spiritual frustration and political

less.

•

not

'

.

II,

■

The declaration of

.

The

policy in the
of

Employment Act does not specify
full

or

ment

even

as

its

the single goal of national

they.are not wanted"
There are in fact three
the,right kind of job, in a con-, policy.
genial place, or, with fair pay or broad objectives or criteria of ac¬
satisfying prestige/*
L ^ ! tion set forth, all of which have
To say thjs. is not to
say that distinctly economic
content: (1)
logical

practice.

standards

and

considerations
the

to

socio¬

have

conce

of employment
opportunities
progressive economy. It sim¬
ply is to say that the formula "al¬

ness

the issues
arisen

1

in

in

employment

opportunities

labor

force, is

a

While
core

there

is

more vacant jobs than un¬
employed men," Avhatever usefulness it
may have had as a slogan

substantial hard

competent and per¬

of fully

it

breadwinners,

pletely

surrounded by

adolescents,

casuals,

and the

for

employment, production, and pur¬

a

_

lim¬

definitions.

sistent

those-able, willing and seeking to
work, (2) promotion of maximum

statistically

of-quite arbitrary

or

no

of f ull4

pt

plain fact is that the size

our

determinate only within the

"maximum" employ¬

in

qualitative

(MayT.se! p.TS'"

TnCu.n £C°" P,0yment slogan and some of
Cleveland, Ohio, Dec. of interpretation that have

° rl

osr

iat»o.

differ¬

The

demoralizes.

wanted

relevance

*'•

Definition?

in public hearings,
in Congressional debate there

,

0n

burgeoning national

j*»tdrr

the

ment; idleness even on an

employed but also to thousands

interest in full employment should

*

Federal

was
spontaneous
and vigorous presently exists, only with other
skills, or without any particular
income challenge to so vague but at the
skill, aptitude, or even teachabil¬
same time so ambitious a concept
corrupts; the feeling of not being

or

merely

„

j
at

ural that the

upon

What Is Full Employment?
Illustrative of the undue domi-

ployment.

•

bed-rock

the

with working concepts of full em-

one

strictly

more

of

In

commercial

In the press,

and

the

nation must rest, if it is to prove for an abrogation of inherent sea¬
Seeking is, of necessity, the cri¬
both commodious and storm-re- sonality and entrenched geo¬ the Congress established an ap¬
sistant, can be discovered and graphic dispersion whose removal paratus of professional economic terion relied on by the Census
Bureau in giving us a monthly es¬
cleared only by the tools of eco- well might entail burdens and advisership in both the Executive
npmic analysis. The economist as consequences m ore deleterious and Legislative Branches of Gov¬ timate of involuntary unemploy¬
ernment. It devolves on the econ¬ ment. But "wanting" would be a
such must help his aspiring or de- than the
unemployment the policy
manding fellow-citizens to learn was designed to remedy.3 The re¬ omist, therefore, to furnish inter¬ mprej apt term v for stour., purpose
and practice "the art of the pospretations of the full employment since it is a commonplace in the
quirement
that
everybody
not
sible" in a real world where emgoal that will sublimate political experience of all who have dealt
merely have a job but that it be a
ployment ann production are detemper
reformist with the unemployed to find not
satisfying job moves the goal even pressures,
a
few persons who want worktermined within the quid gro quo
beyond the realm of sociology and dreams, and combine industrial
may even-need it desperately—and
of the market and the fisc—where into the
domain
of
psychiatry. and commercial workability with who
general well-being is engineered
ye>t are not actively seeking
People
are
"demoralized"
not the scientist's ideal of systematic
a
from productive inputs,
job because they have become

per-

spective to the state of the arts—•
organizational as well as techno-

logical.
accept

compromises

or

which the structure of labor utili-

views

fullness

the

to

grated with them.

time

same

realistic
that

but

at

provided, by insurance
otherwise, during unemploy¬
is

income

to¬

jective criteria, the word 'able be¬
V comes practically meaningless.
Whether a given person is, in a

right.

Who Provides the

adequate

an

By positing job opportunities "al¬

with

dy¬

and

if

economic

that

will
namic

even

policy and program,
should be discriminately inte¬

concept
be

remains

do

t

able to

employment are far1
reaching.
It sets a .requirement
which is unpractically high, both

alternatives

a

ence

who do not
housekeeping

ercise this

loss.

to

labor force for whose

a

utilization

sources."

finished their

responsibilities freely to ex¬

The other is a
personal catastrophe. This differ¬
or

annoyance

get political

experience under

of

who cannot sell his labor
that he is of no
The first difficulty causes

work

in good economic
conscience, pledge itself to "utilize
all its plans,
functions, and re¬

enable all Ameri¬

to

further

conceptual clarification.

Government can,

of

schooling and
have full-time

effect told

in

is

at all times

who have

cans

A person

"big business" enterprise.
decade

tunities

has

who

has

ward

optimum

sufficient employment oppor¬

buying labor. A person
difficulty in buying the
labor that he wants suffers incon¬
venience or reduction of profits.
in

culty

sion

not define

United States to assure

existence

the

work¬

Willingness to Work

useful, remunerative,
and full-time em¬
ployment, and it is the policy
of the

adequate

or

(1) The phrase "those able, will¬
ing, and seeking to work" does

regular,

has ' consequences of a
order
of harmfulness
those associated with diffi¬

from

economist

ing rules for national employment
policy? I think not. Our profes¬

the

have

seeking, work

right to

Difficulty in sell¬

.

...

the

can

ployment ideal

able to work

All Americans
and

ing labor
different

.

gressive, strategically placed

A

Senators.

.

despite various experimental interpretations,
and warns "proP0,le,rt, of high pressure economics . . . to
abstain from
ambitious definitions of full employment
or of business expansion as will engender a degree of inflation
that will call for the imposition of controls on prices, wages or
investments." Mr. Nourse recommends self-discipline by ag¬
.

supported by three other
Section 2 of S. 380, read:

Murray,

proposition, he says:
■
;
*
"There is a decisive reason of

past ten years

But

sociological approach has accept these three specifications
as
spelling out a consistent and
much in common with the polit¬
tenable formulation of a
full em¬
ical approach to the employment

be a seller's market rather
than a buyer's market." For this

complicated and obscure language employed by the Employ¬
Act of 1946, used in charting economic policy for the

power,
(3) deference to
needs and
obligations and
considerations of national

"other

This

ways

ment

.

17, 1957

chasing

policy."

P

should al¬

labor market

The

Former Council of

ance

In his opening pages
problem exemplified in the "full
defines full employ¬
employment bill" introduced into
ment
as
"having always
more
our Congress in 1945
by Senatoi
vacant jobs than unemployed men..

of Economic Advisors

Chairman, Council

practical

a

Beveridge

Economic Education

Joint Council on

as

serve

private business perform¬
other
or of; national
employment,

of

test

hate."

erates

NOURSE*

By EDWIN G.

to

rarefied

ob¬
jective conditions of an economy
in
practical operation. On the
title page of "Full Employment in
A
Free
Society" 'we find the
quoted
aphorism "misery gen¬
than on the

rather

dividual

;

Thursday, January

.,.

(228)

aged

is

com¬

fringes of

housewives,

handicapped, who

freely add themselves to or

sub¬
of

tract themselves from the ranks

ways

UNDERWRITERS

A

to stimulate discussion of
positive

employment policies, is much too

BROKERS

2

Beveridge, William H., Full Employ¬
in A Free
Society, p. 19.
Beveridge himself admitted that col¬
lective bargaining in a
perpetual sellers'

ment

DISTRIBUTORS

3

market

CORPORATE

for

danger

that

pursued

may

iuUution."

MUNICIPAL

as

to

SECURITIES

State

.

rough

4 Another

8c
MARSHALL

investment securities

MEMBERS:
Stock
82 0

York

Stork

Exchange,

American

Exchange (Associate), Chicago Board of Trade
SECOND

•

to

is

be

AVENUE

SEATTLE

Spokane




•

Eugene

4

Telephone MU. 1900

that

\

Olympia

spiral

see

Similarly

"all

classes

.

it

surface

implies
to

of

controls.
this

that

workers

Underwriters and Distributors...

that lurks

In the West's

defi¬

jobs

vigorous

"as

of

process

conditions

adjusting

that

is

greatest

First California Company

to

INCORPORATED

charac¬

teristic
of an enterprise
economy.
Two
examples of
the
nature
of
this
pitfall
be drawn from actual American ex¬

MEMBERS:
MIDWEST

STOCK

PACIFIC

EXCHANGE

•

COAST

AMERICAN

STOCK
STOCK

EXCHANGE
EXCHANGE

may

perience:
tice

in

Labor

the

"too

lions

of

crops

for

erative

coal

for

many

union

policies

fields

and

and

prac¬

government

dealing with the problem
farmers" by paying bil¬

dollars

for

which

there

market.

the
was

production
not

a

market

are

is," ab¬
both employers and, employees of

programs

Yakima

needed.
to

.

monetary

attractive

that

ever-changing

of
•

real

effect

vicious

a

practical difficulty

furnished

solving

New

Corporate Dept. Teletype SE. 482
Municipal Dept. Teletype SE. 673
Portland

the

nition

its

willingly,
adoption by the
a
price policy," and its imple-

of

under

"a

bargaining,

to

he recommended
unions
and
com¬

as

prices, he hoped

mentation

FOSTER

within

arbicration

cooperate

entail

wage

regard
lead to

For -this

self-discipline
pulsory

would

sectional

prices,

upon
°'

and

labor

without

of

remun¬

,3 FRANCISCO

30,0

Montgomery Street
Teletype SF 885

(ASSOCIATE)

LOS ANGELES
647 South

Spring Street

Teletype LA 533

-Pru/afe Wires to New York and All
Division Offices

i

)
Number 5604

185

Volume

.

.

.

The Commercial ancl
Financial Chronicle

(229)

as circumstances
Like, other statistical
series the CPS monthly un¬

seekers

job

employed

and

unpaid

change's

workers, full-time

time

and duration of

employment estimates are useful
to show
direction of movement
and to give some indication of its

speed or intensity.
needs to

cation

But quantifi¬

be

supplemented

qualitative analysis anti-

by much

discriminating

breakdowns.

An

figure purporting to
level of unemployment
illuminating for purposes

aggregate
the

show
i

i

less

is

of economic policy and action than

information

detailed

to

as

the

structure of unemployment. Time¬

hirings

of

rates

the

of

notice

ly

and
lay-offs is

and

pertinent for policy-making

more

than

official estimate that the

an

national

aggregate

ment amounts to
of

character

of

unemploy¬

a

certain percent

categorically

a

defined labor

force.6

clearly
1

in

trend

a

thinking
Employment
Act
is

the

our

in the work of

reflected

several statistical bureaus. Besides
its master

figure covering all those

seeking and not finding jobs, the
Census
Bureau
presents several
such

breakdowns

reports

not

working—temporary lay-off,

new

job

sex,

agricultural and non-agricultural,
wage
and salary workers, self-

industrial

Theoretically,

I
$

much

workers

time

I

would

Employment Security of the
Department of Labor reports
monthly on the number of per¬

sons

1

the

be

of

of

popular

there

for

icy-making,

to

hoc

would

(About
of

4.5%

1945-47.)

mented

margin

to

would

reveal

all

the

purposes

whereas

dealt

be

with

or

ad

union
contract
employer ingen¬

individual

and

local

a

on

kind

some

have

good

a

of

deal

at

fcr

drive

is

ly

the

of

seasonal

"fatal"

to

a

between

time

one

temporarily unemployed."
civilian

labcr

force

Paul Douglas in 1952
Boveridge's
use
of
a

on

be

that

and

such

here. "To

3%

transitional

criterion

a

deficit

use

unemployment

com¬

down

un¬

would

financing
below

6%

dangerous. It wilt tend to do far
through inflation than
the
good it will do by absorbing those who
arc
unemployed from seasonal and trans¬
itional
causes.")
"Economy in the Na¬
tional Government," p. 253.)
In Febru¬
very

harm

more

1955 Arthur Burns, replying
to
a
frcm the Joint Economic Commit¬

ary

tee
said:
"Although 4% cf the labor
is nowadays widely regarded as an
approximate measure of the amount of
frictional
and
seasonal
unemployment,

force

Council

other

ef

problems. The sta¬
being developed

sufficient

that

should

be

uity.

has

rigid

favored

not

figure

to

performance."

good

Committee

port," 1955

or

causes—whether
in

due

the

than
is

a

single
concept of
any

course

sore

of

disturbance

"blow itself
contrariwise, to

likely

seems

to

or.

of

all

pro¬

employed.

Labor

are

The

Statistics

issues

"snowballing" quality or reveal a geo¬
graphical concentration that points to the
of specific local relief measures or
such
dispersion as suggests the resort
to
generally-acting national policies.

need

or as inflation
leading
overemployment, it is clear that

the

choice

such

and
of

by local

funds

the

Within limits

areas.

and

regular

stales,

trained

personnel,
are
supple¬

reports

by spot studies of critical
situations.
All this
rent

(supplemented by

data

from

partments

of

labor)

sonably
good
picture of the
trend

state

Illumined

Cabinet

several

state

gives

de¬

a

rea¬

three-dimensional
current

of

for

by

cur¬

and

labor
the

the

short-

utilization.

President

analyses

and

of

the

Council of Economic Advisers and
for the Congress by its Joint Eco¬
nomic

Committee,

it

provides

a

pretty adequate and reliable fac¬
tual
of

basis

for

economic

tributes

their

consideration

policy.

But

it

con¬

maximum

an

low,' acceptable, or per¬
chance too high to meet Employ¬
ment Act objectives.

encouraging aspect of the
thinking of our times as

free

represents

mum

employment is to so great
extent giving way to maximum

production
lation

and

the

"economic

mere

Yet

Brookings \ised.
the

maximum

be¬
employment and
the

But

latter

left

purchasing power—if this is
properly interpreted as power of

merely

as

through

the

market

The

Three

(2) Second

Maxima

ment

the Employ¬

among

Act's

directives

find

we

"maximum

employment, produc¬
tion, and purchasing power." Does
this tripartite formula
give the
policy-maker a clear and consis¬
tent

criterion

for

for

judgment

think

not.

measurement,

and

The

for

action?

terms

1

both

are

ambiguous and ambivalent.
Besides

uncertainty

who

to

as

shall be counted in the labor

force,
discussed, there is complete
obscurity as to how many days or

just

total hours of work

are

have

called for.

long

of

rapid

and

govern¬

from

of

the

involves

choices

among

al¬

that

the

shall

lie

maxima
within

country's

"other

gations

and

tions

It specifies
be

to

the

sought

ambit

needs

of

and

the

obli¬

but

essential

mum

real

free

and refine these

groups

consumer

power

to

are

expanding Pacific Coast in securities distribution

llie

and service

industry and investors.

to

choices

of

workers.

urban and rural, has
stoutly as¬
serted that he would hold to free¬
of

com¬

choice

'

to

as

whether,

how to work

or

labor

in

income.

lieu of

However,

both farmers and industrial work¬
ers

have

in many

up

considerable

but with

ways,

uncertain degrees of

finality, given
of

areas

this

pristine freedom for the tangible

To elaborate

Continued

sweeping phrases

on

page

109

miimnnniunin

niMWiuiiniiiwiHuiimruiin'iiiiiifniiiii

an

iHMnnvmn»iininmmimmiwwMiwniwiiniM|

technological

in

stems

part

unemployment

from

the

weather as
additional factor.

portant

and

consumers

with

causes,

Since 1858

both

Seasonal

same

im¬

an

Maxi¬

employment in economically
ideal terms would call not for the
mum

SUTRO £7 CO.
Investment Dealers

elimination of these categories of
temporary idleness but for the fit¬

and Brokers

ting of fractional work

years to¬
gether into the largest practicable,

Industrial Brokers

Underwriters
MEMBERS

New York Stock

Exchange

total and the

Pacific Coast Stock Exchange

rather

(Associate)

American Stock Exchange

of

use

as

many mar¬

ginal work capacities
than

possible

as

letting

them run to
"unemployable."
This

waste

4

St.* SAN FRANCISCO

•

EXbrook 2-0900

as

raises

460 Montgomery

the

versus

leisure, which will be dis¬

cussed

OTHER OFFICES

whole

later

New York 5

Van Nuys Bldg.

40 Wall Street

55 N. First Street

Michigan 7711

Whitehall 3-4000

CYpress 2-2442

-

J

Beverly Hills
275 N. Canon Dr.
CRestview 4-5121

San Jose, Cal.

10 ,9 B. St™*1
JEfferson 7-6811

CORRESPONDENT OFFICES

•

Manila, P.I.

Honolulu, T.II.
f

DIRECT

••

t

»'

'

L

v i

<•

:

( I ftit'M I

PRIVATE WIRES TO ALL

f

,

M

,

.

•

-

,

'■

t

■

issue

when

alternatives.
Los Angeles 14

But

of

work

consider

we

first,

maxi¬

are

employment, niaximum pro¬
duction, and maximum purchasing
power mutually compatible, com¬
plementary, or conflicting desid¬
mum

erata?

PRINCIPAL MARKETS

It

,

seems

clear, therefore, that
resulted in giving

policy

that

job

everyone

to

work

who

might

a
a

seek

just be "willing" to work

or

would

who

put many

were

standard

the payrolls

on

submarginal under

of business

any

management

PRIVATE

geared to maximum production—
of wealth, that

of

ume
a

if

sheer

economic

Telephone 8-2821

are

a

"always

as

for

than

the

SYSTEM

cost

of

Equitable's

SOUTHERN

extensive

direct

wire

level where

vacant

more

jobs than unemployed men," mar¬
ginal product will frequently be
less

SERVING

logic

demand

aggregate

workers is raised to
there

WIRE

is, not merely vol¬

goods. It follows, then,

matter of

that

the

in¬

last

communication

Immediate
all

MARKETS

system

gives

instant

throughout the Southeast and Southwest.

quotations

and

executions

are

available

to

Equitable customers.

crements of labor—most of which
c

N. CAR.

•

W. VA.
Corporate LY 62 & 63

Corporate Stocks and Bonds

Municipal LY 82

must

Unlisted Securities

paid

flationary boom that
nessed

over




we

have wit¬

considerable

areas

of

during recent years,
"scraping the bottom of the man¬
power
barrel" has entailed ex¬
penses
of recruitment, training,

lowered

& Distributors

standard

at

economy

absenteeism,

Underwriters

for

marginal price. Even
mildly in¬

under the conditions of

the

Municipal Bonds

be

wages, not a

spoiled

morale

that

unit costs direct and
til

work,
have

and

NASHVILLE

NEW

DALLAS

A

EQUITABLE

HOUSTON
BIRMINGHAM
NEW

ORLEANS

322

UNION

TELEPHONE

ST.,

NASHVILLE

ALPINE

6-412»

3,

TENN.

TWO

WALL

ST.,

YORK

L

A

N

T

A

GREENSBORO

PHILADELPHIA

Securities Corporation

MEMPHIS

T

HAnrroRO

JACKSON.

NEW

TELEPHONE

YORK

WORTH

5.

N.

MIS*.

V.

4-6969

raised

indirect

un¬

they exceed the unit value of

added product. Whether one
at this

as

be

or con¬

prepress, free-enterprise, and free
on

to

of maxi¬

and

provisionally resolved by a
wide range of compromises. Tra¬
ditionally, the American worker,

larger

promote

labor

The dilemma of freedom

when,

to

of

purchasing

considera¬

petitive enterprise."

also

served.

policy." Besides
this general caveat, there is the
specific proviso that the full em¬
ployment or maximum production
goal is to be sought "in a manner
calculated

economy
made between

be

to

production

dom

national

of

In

industrial

trol is

ternatives which cannot be simul¬

taneously maximized.

of work¬

suffering?

protect jobs if the ends

declaration
of policy
recognizes that sound in¬
terpretation of the Employment
Act

consumers

of freedom not only of
employer groups to displace work¬

excerpts

our

ag¬

groups

degrees
ers

third

or

be
their private inter¬

choices have

Having and Eating One's Cake
The

strong and

can

pursue

modern

a

ment treasuries.

(3)

This is

accepted

and ineradicable from

economy

to

ers

goods, not

and

free

ests without the interest

bigger flow of dollars

a

how

gressive individuals

mum

to command

material enrichment.

nomic

is entirely compatible with maxi¬

consumers

the

professional, in the superior eco¬
efficacy of free enterprise.

incompatibility

production,

into

judgment both political and
sociological in nature, though it
rests als& on belief, both
lay and

suitable is the expression
economic Iprogress
that
we
at
Unlike

codification

value

more

tween maximum

a

of

act

our
traditional rating of
personal and group freedom above

formu¬

new

growth."

eco¬

today.

invokes value judgments: On the
face of it, the use of the word

Employment Act that the over¬
simplified goal of full or maxi¬
an

of

areas

First, as to free competitive en¬
terprise. Each of these three words

the effectuation of the

on

in two of the

answers

controversial

nomic discussion

tacity

enous to

Cextumiy>s Expemexce

most

economic

transitional
or,
more
broadly,
frictional unemployment as indig¬

a

will demand

production.

is

and

too

Economists

Almost

meaningful
and
mutually
consistent parts of our full em¬
ployment philosophy and practice

as

value judgments as to

no

whether this state of employment
is

into

employ¬
production

it bears

by

economist

maximum

by

groups,

the

between

It

industrial

of

must fall to maximum

ployers, covering about 50 million
workers, with totals broken down

out"
have

a

to inflation
to

ment

any-

measure

"peril points" to be avoided, such as 2%
unemployment as a warning of inflation¬
ary
overemployment,
overextension
of
credit, or overinvestment, and 4 or 5%
as
alerting
prompt
investigation
of
that

under

percentage they

■"covered"

monthly reports of actual employ¬
ment gathered from
155,000 em¬

trigger

a

a

the Economic Re¬

for

striven

as

as

("Hearings

on

more

be

to

norm

or

45.)
useful

p.

ProbaDiy

this

serve

governmental action

the Joint

all

Bureau

lull

and 3 million

sug¬

now

basis—including

clauses

of

benefits

grams and the

of

mented

natural

Alvin Hansen, in Ins
employment presented
in
"Economic
Policy and Full Employ¬
ment" (p. 19n.), opined "in an
economy
as
large as that of the United States,
it is probable that at 'full
employment'
2

surance

vogue.

definition

shculd
for

we

separately

problem
that are
of general pol¬
the diverse condi¬
tions among those who would conceptu¬
ally- fall
into
a
secondary labor.—force,
nuances

manageable

need

receiving unemployment in-

6 It is
only
rule-of-thumb

to

classiiication

such

to

seem

the

of the regulars
force" of partthose requiring special

breakdowns

tistical

that

for

reasons

and "all other." The Bureau

ness,

labor

practical

great

-S

and

But

treatment.
pose

made

that

seem

for

force

"secondary

a

said

account

labor

primary

mi<jht

be

and

differentiate
a

it

to

sometimes

gestion

and

ii

is

seven

4f

the
5

there

on

business, bad weather,
dispute, vacation, ill¬

or

query

and

age

as

part-time,
unemployment. It

also

employment

Such

under

family

and

33

looks

overemployment leading

BiiiiiiissaiissiiiBs^asss

„

Commercial and Financial Chronicle;.. Thursday, January 17, 1957

The
:%

(230)

^consider^-: lenft,th^5elves to

return that took place Jiave.in
^tax
1939
and the present:: tions are dominant.. Let
Ibelieve the war' years, -due an example. Suppose we

tion in real

Defencd

Compensation
for Key Executives

SSd
1

q?q

■

Narrower

:

Spread

Income

ceives a raise of

-

dividual

increase

this would mean a gross

.

Todays11Snivels S iTyearf'w "his'"t^'brS

legal aspects of deferred

going into the tax and

compensation., If he re- lies in consideration of the cirS10.000 per year, cumstances involved in each in-

' current

Management Consultants

Vice-President, George Fry Associates,

Without

different

fienres
s
'

;

By GEORGE SAUM*

,

stabilization,

salary

substantially

lower in real

form of deferred benefits arrangement for
key executives beyond the benefits ^available to all employees
of the firm, instead of direct annual compensation increases.
Mr. Saum outlines the different types and basic objectives of

the job

In order to approach-the

,

Waeounterpart^of

the. $88,9QQ Qould make arrangements with his

required to
in MM, 4*
you were to plot a; curve withy the
;;, two end points of the hnp repre-,
senting the lowest paid job and

designed to accomplish

to defer the payment of

company

sub-

cbiectWe^dS

ag

,?f
both frn

fr01^

hisjncrease^untilheTs-65

comparable

it

make

years,
He ^0uld then retire from

.^d^ai it Ss to
+k~
busir.^^70feKSJ?
hisp°^siideskS Wp
Xn»ifief\hrnneJOreprensenTng family w.ou" annUal installments. Pomp^sh °het object^
receiim, the $10,00°
3G"
companies the
line^ representing increase in iq
old

;

would

but

ness?

that

me

the
receive, cr

participation * in

active

■

.

would be much flatter than. mug
,..AWS

1956

•

.

«mfinnn

h

First, to attract the caliber

he would get would still

gross

^O$f^000

line representing 1939. Conirepresenting.
Com-

the

.
.

.

,

,

But suppose that instead of takhg ;
ing his $10,000 increase now heW

that .paid $25,000 15 years

ago - is , not paying
salary that would be

"

out various

arrangement, points

an

;

;

specifications for
younger and older key executives, and attributes its popularity
to the fact that base compensation has not kept pace with
dollar depreciation and increased tax bite.
such

Generally speaking,

ago? It does.

some

:

case.

Objectives to Consider

worth than that of the Government would take more
15 to 20 years, than $61,000 of this increase.,

compensation, leading management consultant explains why
900 out of 1,087 firms listed on the New York Stock Exchange
by 1954 had

a^gencralized

me cite-answer, No- one ^method'arid no
consider . cornbmation provides the best
were, riot the .case of a man 55 years old answer for all companies or all
from J the 'who is making $50,000 per year m individuals.. The: complete answer

hetween

but his net

of

.

be executive needed; 'executive needed;

would
would

hi<?-opt

hut

be

.

Basically, deferred Compensation combined effect of the graduated parage lines representing real in«on1 A nft.-WinWn nn tViin Kicio
SpCiHTtd- r' f.rt tlolfl tV»*at
—t ;""r:r7
tKa.
.„„mA
hv
anH
inflation in the. Parable lin®s reP}"656"1tinfQrc.eJ
about $39,000 more on this basis. • Second,, to bold that executive
5
as a device designed to combat the
income tax and inflation in me come WOuld make the 1956 line This ,^caurY,OQ ynf m„PCP that thP o
assumes, of course, that the once he is obtained;
combined influence of the gradu- past 15 to 20 years which has even fitter. The effects of union .10fln„
_
_
$10,000 per ■year Wonm v,e his
would be his
Third, to provide an incentive
i.ted income tax and inflation on made it extremely AHicuJt
- pressures, minimum wage laws,
int*mp „ynH that thp tax col-

p^~'oSCfaS ?">/ income and that the tax col- that will-induce him to

the take-home

l>ayof the high
salaried

exec¬

that

utive.

In

Inroad
the

term

plies to

ap¬

of

;form

re-

munerati
.not
the

paid in
t

year.

must

It takes a

,

•

O
plans; profit

•sharing plans; and deferred compensation in the literal sense of
,

"■■the term,

'■■"./'■

■

pay

a

key

man

it

a
„

at that? .Why. this
paternalistic
concern

for the future of the individual?"

phllosMo'.
s*An

stems

from

the
the

address

ecttibined

.

^en, otfr0m
advice

or

to

all

Assuming
deferred

selected individuals within that

by Mr. Saum before the
meeting of the Chicago Asso-

man.

salary

of

Fringe

Benefits

that

form

some

These fringe benefits,

kc^t "sually.in the deferred
wx

that

compjensation is so adto the recipient and

statistically

but

I

through client files

went

in

our

whv

rtonTaffSSrii

tions. The results
expect

Ch"«o 0Char°rV™ Chfrterek 5!K vt

creases,

derwriters.

near

bSt

—

back

office

^
compensation

which

up

fact,

substantial

for the deprecia-

for

^
,

^

,.

TT

.

Adequate base salary is ma
and is the prime require]

Adequatebase salary is manda-

ory

of any compensation plan.
.

.

Bts-to designated executives

■

In the

case

ments

that

could be
that .could bP

.

of the executives

classed

rim

the-

Incorporated

initially,

as

Individual

or

,

:

:

.^ T|iese,

:

Midwest Stock Exchange

Exchange (Associate)

£ucb as divisional or departmental

.

•

^

J

Now let

s

those' poTtions

we

utilize all

#

;

122S. LaSaHeSt.

CHICAGO

BOSTON

^

1st

Aurora, 111.

Milwaukee, Wis.

Concord, N. II.

Minneapolis, Minn.
Moline, 111.

South Bend, Ind.

Flint, Mich.

Nantucket, Mass.
Omaha, Neb.

Tulsa,-Okla.

Lexington, Ky.

Peoria, 111.

Philadelphia, Pa.

Wausau, Wis.

..

Long 'Distance 233

Waterloo, la.

Madison, Wis.

■

Spokane, Wash.

Kansas City,'Mo.

Bell Teletype LS 180

l.'j-

Rockford, 111.

Decatur, 111.

Member Midwest Stock Exchange

Floor, Kentucky Home-Life Bldg.

LOUISVILLE 2, KENTUCKY

30 Federal St.

NEW YORK CITY

y.
'v

'

44 Wall Street




^ut as you go down the organiscale some other basis,

take a: closer look at
of the executive
compensation-package that are in
ber® °ne best plan?"
the deferred xiategofy.
All these
questions simply do n.ot 1 involve questions and considera-

...

American Stock

,

,.

THE

Member.

Exchange

,

zational

.

.

New' York Stock

-

r

reward is geared to some under-

-

*

-

Shouid

'

i

-

•'./

AT

■

the second most

performance - may be more appropriate. Whatever, the basis,
whether.related, to jneasurabje r£^ a^d ude^
or basfid on arbitrary judgL®",Se whlch merit*/some>form- -of incentive
ealled salary con- ^
^

plans.'

Yerred,'',biv'in

.

„

.

standable; measure of psrfjrmance.
In top echelons corporate profit
can usually serve as t'.:e measure,

>,

group, insumnce

options.

Industriaj Securities

Underwriter: Concord FunJ

opinion

i£

as

-being characteristic-

:Sf
..Unuation!

Investment Bankers Since 1912 :

4

It is

element fntSoexTcu-

I

one

Pmfit

r."

^

Incentive Bonus
j .

as

salary continuation plans such

we

Stock

y

.

.

Pension

•

...

...

also mandatory to go beyond
also mandatory to go beyond this
point,- but how far you go and
what method you use becomes
optional. - y v ..-■,

in-

ddviduau7

.

Public Utility

sense

t e company-

many

ipt-hscTh'^.,'"
several11955

:

•

sense

—

are1 ments? As a matter of

mentioned a moment
ago. They undoubtedly took many
forms such as .those I referred to

Municipal

adequate in the

—

is

that it bears an appropriate salary

•

con-Bens-• do. J. K. Lasser and V.Henry

thcy camo nowhere aonnel turnover.

making

it

tlve compensation is some form of
5_r.
®
pp;,
i? incentive.. Ideally, such arrangetinued employment in mrder to -does not mean, of course, that all
chnnid ht St fin
that the
benefit, comoanies reduce ^per- of these companies had arrange- 1116111 snou.a pe set up.so irwi u

what you
in-

were

i

thing it takes is a base
is adequate for the

^^e dSm aS^ S bilities and adequate in the

thlcomban^

covering the war years and made
comparisons! of the direct compensation paid on various execu-*
live positions at that time with'
the direct comnensation naid to- attaching strings to these deferred
the direct compensation ^ paid today on the same or similar posi- r.rran?emen,s tnat- require conwqUld

!

tne,company, why don t all execu- relationship ^ other positions in
to
tives ' have
some
such
arrange

s

January-February issue of
One is just
rea?ons- One. is.oust plain arith- 'The' Harvard. Business Review"
plain anth- "The Harvard. Business Review"
metic—the fact that a d.ollar re- point out "that of the 1,087 comceived after retirement.. . when pames listed on the" New York
other in60m6 is gone, or at least Stock. Exchange .as of July 31,
reduced, will not be taxed/ as 1954, oyer 900^ (approximately 9
as
would if ye ceivqdyout of l0) had in effect some form
today. Another reason is ^hat by,;ofarrangement for deferred bene-'

cirect

this

prove

them

u

reasonably comparable
with base .salaries paid by other
companies for similiar responsi-

.

can't

I

means

no

f

_

dollar and the increased tax bite.

By

that

position

of

vantageous
n

Advantages

with the depreciation of the

pace

W

Popularity of This Arrangement

group

the

In

insurance

an

explore

further and consider what it takes
stimulate a
key man.
The first

require competent

then of course,
v.,—,
^

.

-

go

reason

in'todfn/'a S

offset in the
executives by fringe

employees in the
special arrangements
that apply to the executive

light of these startling
comparisons the next question, of

It's not compatible with what we
like to believe is our American
ThA

extepMw

some

been

company, or

88,00.0
300,000
880,000

100,000

liberal base salary—perhaps with
an incentive bonus of some,sort—
let

of many

plicable

$25,000
42,000

•WiSrmentS?1 "whypension
sufficient

seemingly

^
has

Lrt?s

dividual.

counsel, in many cases m

g

in the past

thfcnlant °bjf "veSOf

WO

benefits—either those that are ap¬

1956

$10,000
15,000
25,000
50,000

George Saum

stock options; pension

and

tendency
----case

1939

insurance

to

have had

we

years;

35

his

equal

to

^To accoi^lish tois^requires

.

(group or in;di vid u al);
.

1956

in

trations

earnings in 1939*

variety of
forms,
such
as:

consequence

and

taxes

earn

seems

of the leVeiing
off, share the wealth, philosophy carefui procedure and qualified
Gf some 0f the political admims- wal POuhsel
Ift manv cases in-

today's devalued dollar have slashed the
real worth of executive salaries,
Here's what a married executive
Income

on

c u r r e n

Inc.

this

Re-

of America,

search Institute

any

.

_

the

from

them

took

which

expend
lector's share consequently would his.maxmium effort and talent in
file be only $22,000 instead of $61,000. the company's, interests,
* And it is interesting to note that
These . three goals admittedly
to" such: arrangements can be made oversimplify , the problem but if
undue penalty^or risk they can be attained, you will

rr0

^ aild administrative, jobs.

recent issue of "Nation's Business

sense

to

the Sprcad between rank and

statistics. They come from a

some

a

family.

his

of

?a®gU?aedPaayfe®aeQnc°

his own future end
Let me cite

provide for

Portland, Me.

Kentucky Municipal Bonds
Local Securities
INVESTMENT DEPARTMENT

thdmas graham
hector w. bohnert
.4

MILLARD P. McNAIR
Mrs.

E.

C.

*,

P03VHAT-AN M.
CHARLES

CONWAY

C. KING

ROBERT H. JOHNSTON, Jr.

LEWIS

JAMES M. FETTER
Mrs. ELINORE
SEDLEY

.

ROBERT

E.

PUR YEAR

C.

WRIGHT

'

OSCAR

f

,

•

Number 5604

185

Volume

.

.

The Commercial

.

and

Financial Chronicle

(231)

ba

tions
that cannot
categorically.
4Vi r»4-

t

_

answeicd.

executives,
available

.

it

place

first

the

In

'

/v

n

1

should
rfl

v\

be

/\

company,
1!

^

recognized that no
jingle eomponent in an executive compensa-

make it

tion plan can

1

the

key

benefits

Blair & Go. Inc. Now NYSE Member

all

employees of the
should be provided in

substantial amounts

good plan,

a

beyond

to

specifications:

York

UULauLXsfaXrrp"anC'aFromka ' T He Sh°Uld be 3 man'whose
'psychological stmidpoint one poor Alness"8 SemCe 18 VUa' t0 the
feature of a plan may overshadow

.all the good features.

/9n

ly, it is wise to guard against the
tendency to assume that

feature of deferred

and

hold,

tax

that

.pensation

com-

apply

to

all,

admitted to, membership in the

em-

p5vl-n„

,

had

levels^ we have

We are considering
deferred

discussion
for

key

To

;

this

me

features

plus

in

of

pretty pass."•
z

tamalieX eLcuUvealeerounam
all the executive group 01

.to

o
to

r.

'

As to the type of deferred

Blair

5?$ ST aPP™lsal. tot de"

m

Cu G

JSG+ P avoid
.^ea^u.res
to

vf
be

m

and

being

trapped.

wh0

men

.L

o

nG
things
+u •

,

.

,

and,
V

to

the

f

m
1
t at makes further

fit

bracket,

is

not

going

to

be

this

category,

right

circumstances.
cornered

were

has

and

been

-

have

For

example,

old with

years

1

ultimata

a

41)

man

salary of $25,000

a

usually
would
much
prefer
a
$5,000 salary increase to some long
deferred
benefit
that
might b?
worth $7,500. On the other
hand,
a

man

000

55

years

old making $75,-

probably would

terested in

a
'

offered

will

years

from

And

"

tax

'

advantages

become

so,

in-

more

deferred benefit that
'

real

that

be

and

available

as

far

With

insurance

substantial

pensation

ferred
and

share

should

plan

for

category.

sound

of-total
in

if

can

be

base

pay

incentive

bonuses

plus

hold,

and

provide

set

m

I

.

,

a-means

,

,

Lester

compensation

for \ key

the

this field in
were

a

one

of

large

very

of

loans

the

tric

issue

Credit

of

a

name

new

of

also

subsidiary

Blair

&

under

.

Blair Holdings
The

the

Corporation.

business

of E.

H.

Rollins &

Incorporated

Sons,

(organized
originally in 1876), was acquired
by Blair & Co., Inc. in January,
1950, and the name of the enlarged
organization became Blair, Rollins
&
Co., Incorporated.
In August,
1954, when the firms of Ames,
& Co. Inc.

(Chicago) and

Co., Incorporated (New
insurance and bank stock
specialists, were purchased by the
Geyer

Utility

&

York)

became

one

largest municipal houses

the

Stock

Exchange

considered

of

in

the

corporation, the name was again
changed, this time to Blair & Co.,

Wall

bonds.

Incorporated.

large for that particu¬

Chicago

Sanitary

With McDonald Co.

District

COLUMBUS,

,

.

.

,

.

cUieTandTill shortly

21

In

securities

affiliate, of

the

of

Bank

the

with

now

McDonald

Co.

be¬

name

Ohio —Philip

by

of

With M. P. Giessing

Giessing

~

Underwriters & Distributors

subsequently

Municipal Obligations
Toll Road Facilities

financing of many

Bridge Revenue Bonds

important railroad systems in tlxe

1AQ

North

t

partnership

united States and Canada.
the first house to

was

Blair

Water & Sewer Revenue Bonds

develop the

equipment trust certificate into

.

Public Utilities

a

Industrial &

safe investment.

Polian

With Smith,

in the early

(Special to The Financial Chronicle)

Neb.

joined

V>

.j,

p

Smith, Pohan

Harold

—

X

the
'
.,

this

the

when

railroad

country

in

was

.equipment

staff' of

r>wmW

of

fourth

M.

1890's,

mileage

in

'

CHICAGO

3

ST.

trust

certificates

105 W. ADAMS STREET

Blair &

.

& Co., and William A. Read

Co., helped to build the Western
and,

with

Loeb

Kuhn,

financing

aided -in

the

&

Mis-

spurj Pacific. They were the bank-

The

Memphis.

Straus, Blosser & McDowell

firm

and

Houston,- East

built, it«up, and
Southern Pacific.

MIDWEST STOCK EXCHANGE

AMERICAN STOCK

2

BROADWAY

Co., with William- Salor

Indianapolis Bond & Share

and the Kansas City, Fort Scott &

•

314 No.

possessing attractive features not

-ers.for the St. Louis Southwestern

EXCHANGE

LOUIS

bankruptcy,

cidpred
eiltredeedsidered vgiltr-edged

tional Bank. Building.

Unlisted Securities

Corporate Securities

one-

Stood the test, and today are coninvestments.
investments,

Ma

,

{.

&

of Investment

Banking

-r

•>

?»h.

^

Jefferson Street,
-

67 Years

country

became identified in an important

L.

the staff of

has joined

this

known, founded the firm
Blair & Co., a co-partnership,
ever,

This''

Mo.—-Mary

Stifel, Nicolaus & Co., Inc.

one of the
banking and

construction

in* 1890.

(Special to .The Financial Chronicle)

.

FARMINGTON,

SINCE 1890

John I. Blair,

greatest pioneers in

and

EXCHANGE (ASSOCIATE)

finally

saved
West

it

sold

CORPORATION

the

Texas,

to

the

INDIANA

BUILDING

INDIANAPOLIS

4,

•

120

E.

MARKET ST.

INDIANA

It also financed

sold

the

Cleveland,

Telephone MEIrose 2-4321

Teletype IP-298

•

Lorain & Wheeling Railway to the

39

CHICAGO

In the

-

3, ILLINOIS

the

of

Blair
new

telephone

york

ANdover

detroit
kansas

city

cg

PRIVATE WIRE

3-")700

teletype

milwaukee
grand
mt.

rapids

clemens

great

birth

of

many

our




were

and

age,

the

identified

largest industrial
were

Trading

Steel

Powder

Co.,

Steel

Car,

Royal

and

Republic

also

had

Swift
a

&

hand in

DEALERS

Co.

MUNICIPAL BONDS

■

-

BROKERS

CORPORATE BONDS

Over the Counter Stocks

■

Listed Stocks

Baking

Iron

and

Co.," Colorado Fuel and Iron

Co.,

■

Otis

Elevator, Jones & Laughlin Steel,

COAST

UNDERWRITERS

development

Among them

Pressed

Retail

industrial

partners
the

with
of

early 1900's, at the outset

concerns.

<;r><)

SYSTEM COAST TO

Ohio Railroad.

Baltimore

SALLE STREET

SOUTH LA

The

firm

organizing the

-

B.
.Sc

Company, 50 West Broad Street.
He was formerly with Vercoe &

America, New York (Bancamerica

and

is

Drake

1929, Blair merged with the

to the new structure at 20 Corporation)

career,

.

obtained

the

Co., Inc., which

acquired the securities business of

way.

in

Public

Chairman; Emmons Bryant, Presi-

re-

has

Listed

•

ized

Other senior officers of the
company aie Joshua A. Davis,

Co.,

DETROIT STOCK EXCHANGE

iaries, it changed its name to Blair
Holdings Corporation and organ¬

Institute.

Blair

that

principal

floated

of Italian

under

December, 1947.
At
time, due to the corporation
having acquired various subsid¬

ments of

Vice-

operate

until

name

that

the

\ Pacific

STOCK

continuing to

Standard

were

of

mon

YORK

economy.

period, including the first issue

&

NEW

bond

important

original form of Blair & Co., Inc.,

se¬

by the

lar

.

MEMBERS

the

revenue

In February, 1939, the corpora¬
tion changed its name back to its

American market for the Govern¬

Jr.

dound anywhere else.

Underwriters—Brokers

in

as

played

..

Refining Co.

issuers

private

Osterman

in

railroad

OMAHA,

that

is

roles

Street, and purchased many issues

move

^„

be

cannot

Smith' has

draw

to

Executive

'_ '

Pr0VIdes ameans ot le

services

^

-deferred

provides

It

'V

incen¬

Deferred Pay?
conclusion

1956

dent; James J. Sullivan, Executive
tammg the lnterest and
Vice-President; Frank Lynch,
advisory services of a valu- George E. Nixdorf and Edwin A.
able man after his retirement, and B.ueltman, Vice-Presidents.
can
provide assurance that his
Following a long, successful
/

'"Who Should Get Additional

The

1

for

-

option and profit sharing plans.

f

!

well

as

underwriting,

derd;g

factors that are present in stock

tive for at least the younger exec¬
utives in most organizations.

i

financing accel¬
1930's, Blair

late

<?•> It is specific^and nott subject -Brcffld puuaing. site of the oi-iginal
S^.
to the hazards of uncontrollable

de-

Good

the

'

com¬

the

whatever standard fringe benefits
the company
provides for all employees should be sufficient to

attract,

organization

They

firm of Osterman and Hutner,
bave joined Blair as Vice-Presi-

competent legal' and

cqunsel

the executive

be

whose

underwritten

and
Herbert L. Hutner, both formerly

insurance counsel, it can be set
up so that both the "company and

group as a whole is concerned, it
is unlikely in most
companies that
a

Oct

in

Baldwin-Lima-Hamilton Corpora-

competitors.
as

companies

were

partners

continuation

10

now.

financing,

1903,
active

During the 1920's, foreign fi¬
nancing came into the foreground
and Blair & Co., Inc., was active

select one form of President. He was previously Vicecompensation
that
I President and Director of the

turn from each dollar invested.

tt

greater

much

a

value.

the

On

elected

inerTbe the indiVidUal g6t m3XimUm re' offices' in
.

in

most

Canada, Argentina, Chile,
Colombia, Jugo Slavia and Nor¬
nie.ht:? ; • - ^
way, besides numerous provincial
? It was also announced that Blair and municipal issues, including
& Co. has made additions to the Zurich, Cologne, Rio de Janeiro,
official personnel. Oliver DeG. City of Sao Paulo and Antioquia,
Vanderbilt, 3rd, of Philadelphia, as well as the Italian hydro-elec¬ Emerich

reasons:

(!)

increases

tively insignificant because of his

Bryant

qualified

not

corporation^ reverted*

and effective, I would pick tion.

these

COmpenSatii°n
rela-

•

to

salary

a

who has not reached

therefore,

membershm

considered most generally accept-

mostis important able
recognize
that the

+

younger man,

tax

under

deierre\d
,

Emmons

been announced. For several dec/ades the firm was publicly owned

are the several alternative
already mentioned. Any' one of
them can be used effectively

obligedi

Oldpr

Yjmnfter and Older

~

the

Pensati°n-that should be utilized ownership by the present managefor

However, if I

KeeDine-the Yoiino-pr and
Keepmg the

of

in

business.

again
expanded,
continuing
on
through the 1940's when equity

The
Salo¬

Oil'.of N. Y., Phillips Petroleum
Co., Standard Oil of Kentucky and

New. York Stock Exchange, it has

gl;°l'Pa 11 there

should

established

one

Among the
curities

com„

Inc.

consolidation, the corporation
played a prominent part in the
development of the oil industry.

<

■.

Salary Continuation Plan

'

such

Co.,

William

corporate

erated

,

municipal

the

worrying

compensation

executives.

the

means

about pensi0ns, things will have come to a

this

in

&

of

Co.,

the firm de¬
largest part of its activi¬

the

to

When

Salomon

Blair

been

Atlantic

start

ties

was

international houses of issue. After

Joshua A. Davis

^ime)

William

when

voted the

partnership

house

&

mon

xrvixvssia

frequently are not adequate at the
organizational

with

of

banking

.

.

Co.*"

Biscuit

the

a

During the early
there was a lull in

cprporate financing,

Co., and incorporated under the

name

;rns0uranceSUplanSor

mind.

.combined

a salary

i!i1X°-n*1S reS°^e(?1
iWQ " informed that

,m

1920,

,

,

4

National

for

number of years.

Co., United States Rubber,

In

further increases

'

,T

and

&

eibe old enough so
Jf3 !2 10n
deferred
rS tuS- n> so remote as to
1 Z their incentive value. As

have

deferred

of

features

•some

?

Texas

Wn

1

the

already

has

1890

-

/Q.

•

companies

,

in

insiffnifi^Tm^^i1011 ° J6?"
bracket
.? ?^se 0± hls-

tive

com-

stimulate

executive group. ^
Most

,

f,lirrpntm

hn

pensation is good — that it will
provide the clincher that will atTract,

.

,uld„be.

common

some one

Ho.

Consequent-

founded

Bancamerica-Blair

came

1.930's,

only to the ..The banking firm of Blair & Co.
following Incorporated, 44 Wall Street New

who meets the

man

35

Member Midwest Stock Exchange

The

36

Commercial and Financial Chronicle

Thursday, January l7e
1957

...

(232)

communities — hospitals, transfer machines, computers, con¬
schools,
roads, water veyors, construction equipment,
control instruments, continuous
and sewer systems. Major General
miners—which lightens man's la¬
Bradgon,i President Eisenhower's
public works advisor,
reported bor-load and even do some of his
make up

Continued from first page

churches,

What's Ahead in the

governments

local

and

state

that

still greater gains in
to achieve the 1965

productivity
projections nf

$550 to $565

tional product.1

The

-

Securities Maihet
the

1946

problem of raising the huge
of capital needed to con¬

tinue

growing expansion over
decade.
I am going to

our

the

next

tell

you

civilian

This demand was further

continue to remain
high in comparison with the past
20
years
of "easy money"
and
will

might
I

even

steady advance in wages.
Since 1940, the nation's wage rate
has virtually tripled. This has re¬
sulted in a tremendous increase
in the standard of living particu¬
by

higher.

move

going to tell you that the

am

phrase "what is the stock market

low

weekly

in

tries

production

for

earnings

workers

selling of institutional investors
and
professional
managers,
no

of

fore, the analysis and study of in¬

(after taxes,
rent and other
basic
living expenses)
was
$26
stock market averages.
I am go¬
billion before the war.
Today it
ing to tell you that while the
is well over $160 billion or six
stock market is not greatly over¬
times as high.
In pre-war days
valued
at
present price levels,
only one family in every 10—or
neither is it
discretionary income

clothing,

food,

.

particularly under¬
valued except in the case of some

million—had

four

any

optional purchasing power. Today
over forty million households—or
seven in every
10—have incomes
in excess of basic living needs.1

probably a further resting and
consolidating
period
similar, to
1951-1953

than

less

that

and

the

to be more reason to expect

is needed.

The vast and

Dynamic Forces

largely unexpected

gain in population since 1946 has
created
a
huge demand for all

Briefly, that is what I am going
tell you.
Now, I will tell you
that the powerful forces that have
brought about the dynamic in¬
crease
in economic activity since

of construction

types

to

1

L.

for

"Investing
Babson

Boston,

&

Co.,

Mass.

that

to

than

Plant and
All
have

brought about

increase

spending
for
new
plant and equipment.
Business
expenditures on new plant and
equipment are estimated at be¬
tween $35 billion and $36 billion
for

This

1956.

billion

in

The

position
(1)

unique

benefits

of

efficient

dual

as

and
Through its subsidiaries,

protection

systems,

(2)

unregulated "public utility"
operating communication systems covering 1700 cities
coast to coast which provide essential fire and burglar
an

alarm supervisory service.

trolled subsidiaries.
In

at

throw-off was $22.07 per share. The stock
five times this cash flow. We believe the stock is

undervalued and continue

to

recommend it for capital appreciation.

MEMORANDUM

offset

to

more

the

has

rates

wage

in¬

been

by the growing
workers because of

shortage

-

the

birth

low

of

Whereas

the

of

rates

civilian

the

1930's.

working

force constituted 42% of the popu¬
lation before World War II, it is

to 40%

down

now

ON

and

dependents (those under 18
65) will increase twice

fast

those

the number of workers

as

groups).1

age

Boenning & Co.

however,

interested

are

in

to
de¬

veloping the managers, the super¬
visory
personnel,
the
technical
experts, the specialists bf tomor¬
is the age range of 25 to 45.
Against a total population increase
row,

28

of

million

there

will

17%

or

be

by

actual

an

1965,

decrease

136,000 people in the age range
between 26 to *45.
The demands
for

personnel
to

group

this

in

will

week

pressing
and

ESTABLISHED

Exchange
of American Stock Exchange
L0

Philadelphia

30-hour

a

8-0900

basic wage rates

NeivYork

nation's

the

done

underlying

by

forces

machinery increases, the
replacement requirements for such
goods automatically rises. Machin¬
ery installed after World War II
is already growing old.
The Ma¬
chinery and Allied Products Insti¬
tute estimates that the annual rate

of, such

is now running in
billion at current

wear

of

$10

Whereas only 32% of the
dollars
spent on tools and ma¬
chinery
were
for
replacement
prices.

in 1948, the figure has
grown to 47% today. Meanwhile,
technology and
competition are
purposes

constantly

increasing the

obsolescence.1

products
ered

by

New

materials,

of

new

discov¬

or new processes

company

which allows its equipment to be¬
come obsolete is doomed.
As

result

a

increases

in

of

the

have

-

billion

a

$360-$400

in

achieve
in

national

gross

of

realized

this

when

of

end

It

would

have

been

impossible to
national product

produce the gross
of

$412

billion

reached

in

1956

without the productive equipment
installed in recent years. It would
have

required

million

60

at

1929 rates

of

Government
in

State

man-hour
more

workers

man-

1947

rates

of

hour productivity.

net debt

was

$388

and $38 billion
Government debt.

The question
in

for

10

It

years?

too

is who is going to

this

debt to be

$363-$400 billion

created

is

complicated

in the

question

a

be

to

next

much

answered

in the short

period of time allowed
address, but it would ap¬
quite evident that part of it

for this
pear

will

financed

be

local

by

Governments

Federal and

unless

private

borrowers increase their debt at
much

greater
their

crease

in

ress

than

rate

income.

this

Some

direction

prog¬

might

archaic tax laws relating to depre¬
ciation
allowances
for
replace¬
of worn-out equipment and

ment

for

equipment for expanding
growing economy. Some
change in Government thinking
may also be
required regarding
a balanced
budget and a reduction
new

a

debt.

Debt has borne a fairly
relationship to gross na¬
tional product in the past as has

also

GNP

to
money
supply. It
improbable that our econ¬
can expand at the anticipated

seems

omy

debt

further increase in

a

and

supply.
equity
financing
would relieve this, situation con¬
siderably and would reduce the
amount needed for debt financing.
A

shift

in

money

to

the

a

definite upward

of equity
financing. Pension funds, mutual
funds, colleges and some insurance
companies
are
increasing their

direction

portion of assets invested in
tax

com¬

stocks. However, a
laws

been

past

Railroad

•

appears

change in
needed to ac-

Indusirial

•

SECURITIES
New

Jersey and General Market Municipal Bonds

Electronic

and

Guaranteed

Television

and

Securities

Leased Line

Stocks

Equipment Trust Obligations

re¬

over

Bank and Insurance Stocks

and

Mutual Funds Shares

five

years.

The

demand

equipment,

Underwriters, Brokers and Distributors

Corporate and Municipal Securities

-/^cKelvy § Company
WILSON A. SCOTT

FRANK H. HUNTER

REGINALD R. CHURCH

G. PEARSON RHODES, JR.

WILLIAM S. McKELVY

GELSTON

E. PAUL TUNNELL (LIMITED)

NEW

YORK

B. MORRIS, JR.

STOCK

EXCHANGE

AMERICAN

STOCK

Telephone—GRant 1-8700

PITTSBURGH STOCK EXCHANGE

•

EXCHANGE

UNION TRUST BUILDING

gained

goods

•

(ASSOCIATE)

PITTSBURGH 19, PA.

two

Charles A. Taggart & Co., Inc.
Member

much: momentum

so

decades.

Research

Philadelphia-Baltimore

Stock

Investment Securities
1516

KIngsley 6-0900

Exchange

r

Locust Street, Philadelphia
Teletype PH

677

,,

2, Pa.

New York Phone WHitehall 4-7000

activity
is the most dynamic
single force
in broadening the market
for ma^
chines and equipment. The coun¬
try is now spending $6 billion on
research

activities

in

and

1947

billion dollars
The

number

less
as

vs.

$2

than

billion

one-half

recently as 1940.
engineers
and

of

scientists engaged in research
and
development work is over 200,000

—roughly

only 15

companies

in

virtually

a

handful of industries. Out of these
research efforts are

vast
the

Incorporated

five times the number
A large part of

America's current research activi¬
ties is concentrated in a few
hun¬
dred

Rambo, Close & Kerner

years ago.

new

Corporate Bonds

Municipal Bonds

and Stocks

Authority Bonds

coming
labor-saving devices—the

Bell Teletype PG 587
2 Commercial

Pershing & Co. Wire System




labor-saving

associated

that it may well be the feature of
industrial activity over the next

of

WILLIAM M. McKELVY

has

for

and

Dec.

13,

3 An

&

Financial

Chronicle

1956.
address

by

Norman
Strouse,
President, J. Walter Thompson Co. en¬
titled: "Velocity Is the New Dimension."

1518 Locust
St,

be

made if the Goverment revised its

mon

It will require

Utility

a

they in¬

Dealers and Brokers in

Public

be

that

debt

and

account

trend

productivity and 20 million
at

The

will

consider

States

to

billion

product.

amount

we

which

There has been

more

workers to produce this amount of

goods

decade

$658 bil¬
billion was
private debt, $232 billion Federal
of

both

rates.

wage

-

1955, the total

in the United

lion

increased

as

next

1965 goal of $565

enormity
at

the

rate without

fast

js

pressures on
the
economy, it is
estimated that American
corpora¬
tions and governmental
agencies
have to raise capital of

plant and processes, the out¬
put
per
worker
has
increased
sharply even though it has not
as

today

definite

effi¬

more

question

are

going to finance this
tremendous
capital goods boom
without creating more
inflationary

in

tremendous

and

new

major

we

to meet

forces its
competitors to obtain like or bet¬
ter
equipment.
Any
company
one

These

men.

the

over

rate

"

.

week

sponsible for expenditures of
$145 billion 'for new plant

equipment

such

labor-

of

stock

largely

control, management
keep its labor costs in

now

in

rise

the

of

its

only

work

a

nT

gross

35-hour

a

maintain its competitive
position in only one way: by im¬
proving productivity which means
not only using more machines but
contriving new ones to do the

1914

Philadelphia 2, Penna.

economy
With labor

for

even

whole and
account for

as

our

intensified.3

unions

age

the tremendously

carry

be

critical

line and

Members of Philadelphia-Baltimore Stock

economy

expenditures

cient

important,

who

and with

REQUEST

the

saving

over

can

Members

and

new

further increased

beyond

1529 Walnut Street,

for

increased burdens of

1955 Grinnell's cash

currently sells

$19.3

of

Thus, initial engineering, manufacturing and installation profits are
supplemented, year after year thereafter, by Ghinncll's equity in
the highly stable, constantly increasing revenues from the con¬

for

excess

plants

in

crease

from

up

1949.

demand

(18-65

Grinnell's

Nation's largest producer of automatic fire

is

capital spending

times faster than

As

factors

enormous

an

since

outlays

how

spending in recent years.

in

More

die

demand

fact

1929 for new
instruments coming
from
or
used by the industries
mentioned above has grown three
that

Equipment

these

of

ber of

GRINNELl CORPORATION
realize

Spending for New

the

by

technological

these

by 1965 is
likely to be only 38%. Projections
Tomorrow"'—David of the age composition of the 1965
Investment Counsel,
population indicate that the num¬
go

demonstrated

be

can

four-fifths

as

investors

spending

defense

letdown.

a

Enormous

and

Few

in

pick-up

a

There

budget.

government's

seems

The

1940.

in

$25.20

level
$82 weekly. According to
L. Babson & Co., invest¬
counsel of
Boston,. Mass.,

ment

far more rewarding
than an attempt to anticipate the
broad movements of the various

securities

appears

expenditures

over

David

and industries

prove

individual

that the present high
will continue and
will constitute a large portion of

it

manufacturing indus¬

were

spending

equipment

for

demand

the

and

In the field of defense

most recent average was at a

longer moves as a unit and, there¬

will

by families formerly in the
income
brackets.
Average

1964.2

by

a

larly

going to do" is outmoded
and
meaningless because the market,
dominated
by
the
buying
and

dividual companies

of World War II when
production was curtailed.
built up

yeafs

that interest rates, which
sharply in the past two

have risen
years,

The

number.

in

many

are

primary motivating force in 1946
wasUhe pent-up demand created
bv l6 years of depression and five

amount

in

v>"

Financing the Boom

thinking for him.

each year in
Roughly three-quarters of cor¬
meeting the $200 billion backlog porate research in this country is
of
roads,
education, water and accounted for by the electrical
sewerage
requirements and he equipment, chemical and related
stated
that
these
governmental fields, aeronautics, scientific in¬
units will have to spend $20.4 bil¬ struments, machinery and petro¬
lion annually—twice as much as leum
groups.
The * correlation
is now spent—in order'to catch up between the
growth :in research
behind

falling

are

billion

Philadelphia 2, Pa.

1/

Number 5604

185

Volume

,

.

.

The Commercial and
Financial Chronicle

this trend.
Tax
laws
financing more attrac¬
tive for industry and it appears
difficult to see a major shift into

centuate

equities by most insurance
panies, banks and savings
loan institutions.
field

the

in

is

It
.

where

investing

of

com¬

and

individual

tax

on

double

a

on

by

"Double

taxation

this

"Of

dividends

on

a
double-barreled
effect.
Apart from its inherent injustice
it
places' shareholders at a dis¬

should

billion

of

sale

the

raised

be

new

stock.

twice

is

can

be

pect

that

we

in

six

community,
to

is

encour¬

equity financing and broader
snareownership, the tax problem
never
seemed more pressing
immediate.

more

Someone
the

Moreover,

investor

got to

we

—

and

about

worry

right

In

now.

his

behalf, we must take a critical
look at existing tax
laws, study
their

effect

climate

onr the

and

dam

bear?

whether

them?

Why,

should

we

do

in

be

other

worried

4

Commercial
27,

&

Financial

the

The

then,

most

is

of

held

over

tax

question.

continue

to

It

goals

ourselves

providing
and

of

can

choke

greater

in¬

greater mobility.

this

unrealized

American

moment,

billion of

This is
potential growth money that is
to a great extent locked-in. In¬
vestors
are
unwillingly
substi¬

words,
the

capital

gains.

good
judgment and holding some stocks
the

tuting

Chronicle.

1953.

is the elimina¬

tion of the capital

gains tax. This

and

rise

creeping

in

the

to time

costs,

inflation, let

have

means

labor

Stock

Market and

bound

are

judging

to

few

a

Selectivity

sales,

such

quite

in

an

economy

industries, the efforts to
mistakes

disturbing

be
entire

may

the

to

market

less

unit. There

locked-in

investor

renewed

a

constructive

most

step that could be
to; ease'the plight of the
flow

and

of

this

solution

than

is

encourage

capital.

it may sound.

far

And

calendar

for

will

I

first,

mention

will

I

again

are

as

two.

pressed)

originated

for

the

purpose

from securities transactions. Faced

is

with

important

money-raising
our

problems

they recognize

own,

its harsh and destructive nature."
To

these

enact

changes,

the

opposition of labor as well as
Government must be overcome.
Labor's

opposition

emotional. It
better

can

is

largely

be proved

investment

that

climate

a

for

equities
will
help
provide
the
$10,000 average cost of providing
equipment for each
new
addi¬
tional

worker. Perhaps increased
ownership by smaller in¬
vestors will also help this situation.
stock

the

increase

industries

Rate

Rise

the

number

that

Among

have

come

last

20

or

The

the

number

concomitant, ments

a

drop in bond prices. Moody's cor¬

in

porate bond yield on AAA bonds

ferent

has

advanced

from

yield of 2.90%
high

of

an

average

in 1954 to

3.74%

or

rise

30%

a

recent

a

affect

different

into

at

savings

point,• is

new

families
to

create

their

surplus

companies

period.

year

continued

the

over

As

over

banks,

loan

funds

invested

be

to

by

funds

collec¬

professional

management. There has also been

widespread

adoption

etc.

The

who

of

pension

of

profit-sharing
nlans,
professional
managers

control

these

funds

are

sources

adequate

to maintain the

huge research programs

dif¬

lor continued progress.

well

fessional

by the effects of in¬
adjustments. From time

managers

necessary

These pro¬

are

Continued

on

in

now

page

the

at

Semi-annual Appraisals

demands^ for, w,,capital

ncxLdecade,

difficult to visualize
in interest

it appears
sharp drop

a

ratesj It rather

that

with

eral

Equipment Trust Certificates

appears

•

Reserve

background of

a

Fed¬

a

i

policy of both main¬
taining full employment and also
the
purchasing
power
of
the

City of Philadelphia

dollar, that interest rates, subject
to interruptions during mild busi¬
ness
recessions, will move gradu¬
ally higher over the years. They
are
high today only in relation
to the "easy, money" days of the
1930's, and 1940's when an entirely
different background existed. Dur¬

and

Philadelphia School District Bonds
as

of December 31, 1956

Now available for

1920's,
the
yield
on
Bond Index aver¬

the

5%,

periods before
were
higher

in

and

distribution

Write for your copy

AAA

interest

rates

they

today.

THOMAS & COMPANY

are

STROUD & COMPANY

Inflationary Pressures
Most

BUILDING

the

cf

factors

I NCORPORATED

have

we

should

result in
pressure.

It is

PHILADELPHIA 9

con¬

inflationary

enumerated

tinued

Federal

the

hoped

that

Board

will

continue

NEW YORK

Reserve

to

•

PITTSBURGH

•

ATLANTIC CITY

ALLENTOUN

•

LANCASTER

SCRANTON

«

its

use

control to take
inflationary steam out
of the economy. But in its struggle
to
maintain a stable dollar, the
of

power

Securities

money

of the

seme

Municipal and Corporate

has

Board
most

no

control

over

the

ingredient

important

i

of

prices—wages. Sumner Schlicter
of
Harvard
University summed
this

rather nicely in a' recent
to the New York Society

up

address

Security Analysts.5

cf

in

"All

DISTRIBUTORS
0

Bank

Municipal
®

Insurance

°

DEALERS

•

Corporate Securities

Stocks

•

Mutual Funds

Pennsylvania Authority & Revenue Bonds
New
We

Public

maintain

Housing Authority Bonds

active

Inquiries

on

trading mirhpts in

Pennsylvania

Inactive

unlisted securities

Securities

Invited

Arthur L. Wright & Co., Inc.
225

SOUTH

Philadelphia
KIngsley
New

15TH

STREET, PHILADELPHIA 2
Bell

Telephone

Svstem

Telephone:

DIgby

4-5951

Direct Private Wires To:
Charles King & Co., A. W. Benkert & Co. Inc., Wm. V.

■t
j

L

.

.

„




New

York

FrankeJ & Co. Inc.,

trends that I
be regarded

1910

must

favorable—they help improve
economy. The one exception,
of course, is the creeping rise in
nrices.lt would, of course, be nice
if prices would not rise, but the
as

dire
every

Underwriters, Distributors, Dealers in
CORPORATE AM) MUNICIPAL SECURITIES

predictions that one reads
now
and then about the
of a slow inflation

MEMBERS

consequences

strike

me

as

ridiculous,
the

when

larly

particu¬

inflation

is

New

YqrJi Stock Exchange
American

Stock

Pkiladelphta-Baltimore Stock Exchange
Exchange

(Associate)

initiated

by a rise in labor costs
which commodity prices more

to
or

less

sluggishly

adjust

them¬

selves. In this imperfect world we
are

often

1500 WALN'JT STREET

•

PHILADELPHIA 2, PA.

compelled to choose be¬

if the choice

is

Philadelphia Telephone

Teletype

between enough unemployment

to

FEnnypaekcr 5-2700

PH-4

tween
City

Sherrerd
)

&

ESTABLISHED

1he

PH—255

5-1060
York

Teletype

the

all,

described

have

Butcher

lie said:

evils,

&

5

Nov.

and

15,

1956.

Financial

*•

Chronicle,

pri¬

marily
interested
in
dominant
companies with financial re¬

two-

a

look

we

un¬

companies,
associations

the cost of borrowing for highest

quality

for

reason

savers,

insurance

mutual

tively

illustrated

ventory

These

life

and

industries

and

degrees

times." The

'

of

incomes

important

an

channeling

to

different

number

familiar with direct investing, are

dampen the
The unprecedented demand for
effects of any favorable or un¬
money to finance our expanding, favorable
developments upon the
economy has caused a sharp rise economy
because such develop¬
in interest rates ahd

the

programs,

in

re¬

sharp increase since the

sufficient

this trend.

goods.

tends

were

is the grow¬

reason

in

savings is

industry, the
industry, the chemical
industry, the road building indus¬
try, the air-conditioning industry,
the
frozen
foods
industry, and
various industries making durable

increase

second

with

electronics

industries

economy

war

aluminum

consumer

through the pain¬

of reducing them, the
the

on

The

tor.

grown

industry, commercial avia¬
tion, the natural gas industry, the
plastics industry, the various parts
the

and

ing role of the institutional inves¬

plane

of

best

markably small."

importance during the
30 years are the air¬

have

went

process

effects

into

greatly in

that

then

and

of

or

the

restore

For

ful

the

existence

"An
Interest

in

industries.

some

inventories

to

of

example, during the
last
year,
when the automobile
industry
made
the
mistake
of
accumulating too large inventories

of

Switzerland,
Great
Britain
and
France—impose no capital gains
penalties on the public's profits

be

de¬

or

efforts

between

sales.

cycle

considerably less important
developments that have not

been

the

ratio

planned

economy

(stimulated

by

industries

Sumner

business

the

seriously will the

disturbed

the

For

quote

a

for

reasons

these

"But

efforts to limit

than

moves

several

are

drastic* Schlicter.5

less

Of 55 nations

that

PA.

this.

longer

no

affecting the business cycle.
Indeed, some of them have not
been
planned at all. What are
some
of these changes? The first

aged

State

mar¬

by kets and to allow their inventories
in¬ 'to betibme tbo large "of ' tdo Small

us

creeping

correct

The

industries

some

to make mistakes in

economy. The larger the number
of industries in the economy, the

the

than

19,

the

That brings us up to the stock
market. As I said earlier, the stock

perhaps

Moody's

PITTSBURGH

halt

and permanent

is

ing

ALCOA

solution?

the

obvious

to

from

expansion

for

we

up

of the

investors have over $200

investor?

Dec.

dividends,

capital available for newer
venturesome projects. It
inertia and inaction, in¬

centives

confine

about

se¬

more

stead

investors

restrictions

crucial

set

if

met

"As

burdens

What

securities

very

have

breeds

it up.

"What

debt

or

The effect

whether

and

they encourage the flow of capital
or

of

a

of risk

investment

determine

financing
relying too

the, impulse to venture and to
gain. The capital gains tax really
does just this.
"Because it is self-imposed, it
can
be avoided by taking no ac¬
tion. It therefore locks the present
investor in, and reduces the pool

a

has

bonds,

months.

be

lag in meeting it,
preparing for the future.

in

or

on

we

has

cannot afford

into

by

imposes a levy of
the gains realized

sale

poses

age

or

tax

25%

Problem

anxious

are

and

stacle is the capital gains tax, one
of the harshest penalties on suc¬
cess this country has ever devised.

the

where

stocks,

"The bite taken from

the rate of recent years."

financial

forced

on

dis¬

however, is only half the problem.
An even greater investment ob¬

This

the

"What,

'

pros¬

be

may

from

expansion

the

curities.

equity securities—that is in com¬
stocks. It is fully three times

"In

ahead—in

away

heavily

mon

Pressing Tax

danger in double

investors

companies
their

American people. And this repre¬
sents a hitherto unknown scale of

The

lies

couraged

ex¬

investments

the real

taxation

pected to supply about half of it.
the
remaining
$30
billion
should come directly from us, the

individual

of

similar to

"But

But

direct

a

used.

an

of $6 billion a year over
the next decade, if our future is
to be financed soundly. You might
well wonder, where will this kind
of money come from? Well, in¬
investors

as

shareowner's pocket as
would be required if debt financ¬
ing such as bonds and loans were

average

stitutional

relative

evils."

ventures.

new

Canada, Belgium,

the burden of earning
much in order to
put a

dollar in

through

This

flation. It is the least of tne three

into

owners
throughout the
world
that
we
some 3.5 million
unincorporated have surveyed, 46 countries—in¬
businesses which pay
only a per¬ cluding the financially sophisti¬
sonal
income tax. It places on. cated nations of

$6)

some

being discouraged from switching

cf

financial

billion,

all

advantage compared to the

1965 goals.

$360

intensifying price movements, and

has

they must generate — to
just the plant capacity

needed to meet

direct controls of wages and prices

taken

inflex¬

capital gains realized

from the sale of stock.

,

raise—the

to

have

will

energy

i

to

billion. This is the amount
capital American corporations corporations

of

long after fhey really want to.
They are inadvertently diminish¬
ing supplies of available stock,

a

we

avenues

a restrictive and

ible tax

stated this point admirably in his

acquire

i

these

corporate dividends and

imposing

$360

1

both

risk-taking—by leveling

"Aiding
the
American investor with a better
investment climate."
He said—
"Like
all
things of value, this
future has a price tag. It reads:

3

essentially

today,

barricade

great - progress

address.4

is

in
corporate earning
power,
there-'are only
tWQ ways it can
return a profit: It
pays dividends
or
its value in the
market inci eases.
In
America

might be made , if a revision of
present tax laws were possible.
Keith Funston, President of the
New York
Stock Exchange, has
recent

stock

share

our

I

Slnce

,

make debt

37

(233)

New

York

Telephone

BArclay 7-4641

the

38

Financial Chronicle

The Commercial and

38

(234)

be

'its

lem

nirli

ket

for

m

is

mhr^ intellige^

a

more

in

nrices

closed

3%

1956

above

but during 1956

advanced

ranee

area

an

as

with

the upper

miueu^c

of high investor
investors

willing

1955

high price for equities
mgu_ f
the
very
favorable
long-term outlook. When the
stock market is in a high investor
confidence area it is, of course,

closing

few stocks

a

50% and quite a
sharp declines. Many

companies

during

the

-'This selectivity

uncertainties

The

pay
pay

a

of

majority

the

a

sudden change in

confidence

ber issue of the "monthly bank
letter" of the First National City

period,

and diversity will

Bank of New York 6 Which reads

'

—"the

basic problem of the capi-

attempted

rather

a

sides

wide
the

of

1956

level

,

in

closely tested

other

and'maladjustments. Carried to
extreme, they

oc-

xor

Price

the

was

move

narrowest

average

Yield

the

in

have

°vei capacity in specific lines.
When

relatively

steady for the past two

years with

of

range

<»%.

from

roughly

Price-to-earnings

4%

the

demand

for

.

capital

exceeds the rate of saving, and
productive facilities
lor
capital
goods are as fully engaged as they

on

industrial

held

a

may end in lack of

tn

interyear

1897.

since

equities

an

balance between productive facil-

during the year. Despite
moves
in individual isthe trading range of 12.7%
the
Dow-Jones
Industrial

Average

are

now,

inflationary

pressures

months

is

is

580

The

of

the

technical

600.

past six

down-- of

The

.

unjt and

a

n*

.

no

is

,

longer

360.

to

vance

A

600

speculative

would

justified

at

earnings

move

this

1957 than is

i

,

telligent market than those ot
the
past and that the study and
analysis of
individual issues will

be

much

more

tempt
vtempt

rewarding than

to

-

be

ad-

De^^s/1 * Fi"a"cia' Chronlcl<

WALTER, WOODY

let

years

countries, the

ago

saver

of

has suffered serious

than indicated since interest

fncome js often subject to taxation

in

that

currently anticipated,

waters^ down

the

rate

and

invested

speculative boom. If this occurs it
might
set
back
our
long-term

game

also

rler-linn

tn
deel ne to

a

a

seems

siderin?

thp

lnu;
low

«

as

improbable

pxtrpmplv

10
years
ago
at 3.4%,
^ all jnterest reinvested at the

%

as

con-r

e

prvn

are

This

would

sum

have

enough in nominal value
to keep up with the
wxv,^
mv.
«v v.*.*c^
average rate
depreciation of the dollar only
if

tv.p

intprpcf

fvpp

,,rPrp

nf

n-,

interest were liee of in: come tax.,; A person, in the 20%
^ncome tax bracket would have
360

outtook

i

rate

grown

rnncttriir-

a

«ePexSamined

-

required

a

of 4.3%:

in

taxable
a

40%

efin"

interest

rate

bracket 5.7%:

"%'

inese
These graphs of inthis simply to hold even with the
dividual issues show
_a
probable, depreciation of
-:the
dollar
and
continuation of the diverse
price
avoid actual lo«s "
'
movements
that have been the
,
1
'

and

HEIMERDINGER
403 Dixie Terminal

examined,

over a

of time. The

individual

CINCINNATI 2, OHIO

J

;

pattern

Building

considerable pe'riod

*

technical'patterns'-of

stocks

are

}

long

combina-

a

Now I:am going to
told you. * I told
range

tell you what

you
basic forces

that the
continue

tion of

Phone—MAin 1-5071

aroa

1..

excellent, good, fair, heu-: favorable. • I told you that a
I r«4-i
mediocre, poor and unfa- leahstic approach'must be

1

„

^

_lf

"•

.

tral,

188

vorable.

The

of

sum

"**■

*

all

^

of

/•

dium

will

than

bonds

the

over

Specializing in the purchase
sale

of

and

municipal tax bonds and

municipal

revenue bonds.

v'- r\ nl

..

,

The

Outlook

Over the Very

Long Term
;

jjj conclusion, I believe the long

term outlook for both business
and
the
stock
market, is

constructive

the next decade
and I. would like to close by quot-

p/tU

rt

L.

•

Mackay-Shields Associates

^

"So
the.

much

for

the

1957.

year

outlook

The

whole-is

for

expansion.

A

a

ing

*eric£

A

of

in

m

break-

glorious

dr|wing

in

the

scientists

of

and

sLieiiusib
of

business .leaders.

our

be

wider

of

1956.

than

the

524-458

The

and

startin"

in

the

surge

sS

early

the rate of "family formation will
spurt upward.

produce
]i t

y

•

*

huge

for

whole

a

$6 billion per
research

.*?new

industries

new

f

Our

outlays

annum

* "

530-430

with

showing

both

above

average;price

CO.

action.

CINCINN AT I, OHIO
Statement

as

of

December 31,

The

1956

RESOURCES
And

Due

States

and

from

'~

$100,871.578.8Z
88,644,31 1.11
13,299,660.82

Municipal Bonds
and Securities..,

Other

Bends

Loans

and

Discounts

Banking Premises
Income
Other

4,332.956.90

Accrued

Resources

164,582,378.54

OwnedI_IIII~IIHZ~ ~

Receivable
I

and

Prepaid

^

4,508,713.62

ExpenseZIII

1,099,959.13
1,045,090.52

TOTAL

$378,384,649.46

Undivided

($25.00 Par Value)

$11,875,000.00
11,875,000.00
4,211,345.82

Profits
Total

Capital

Funds

and

a

&Financial

&

co., inc.

Bank
U. S. Government

Other

and

27 961,345.82

4.041,712.64

Savings

340,743,071.41
5,558.511.16

Liabilities

80,008.43

TOTAL

$378,384,649.46

?! pft" 'Inh
51 \9 31 0 0 °1 Trust Money
SecUon 1107.12 JVlLV°V^°',lS- °f tu€
becnon llt?
f
preferred claim
is

a




It

deposit in

the

Ban'^ La« »/

against

the

assets

of

Ban

kino

Depart-

the Stale of Ohio,
the

Bank.

natural: gas,

14, OHIO

ma-

'

Teletype:

TOwer 1-6550

CV 652

oil

be

defense,

labor-saving
in-the-ground groups.
I

believe

wealth-

or

that

common
stocks
will continue to be
more7attractive vehicles for
long-term invest¬
ment for the individual
investor

bonds

bonds in

a

even

though the
yields has

re¬

placed

more

competitive posi¬
tion with stocks.
However, with
the possible
exception of investors
in high tax brackets who
can
buy.
tax-exempt municipals, the return on high-grade bonds
over the
past
10 years has not

deoreciation
on

CLEVELAND

Phone:

cement,- coal,-

will

•

1957

equipment/

metals,

.

noted thatmost of these
groups are either in

than

deposits'- Dividend5> inierest. Taxes7et~c.:::::::::_
♦Commercial,

airlines,

steel.

:

From

First

the

of

kept
the

up

with the

dollar.

monthly letter
City Bank:

of

the

National

"Since

burning

World

inflation

War

has

II,

slow-

been

the

Baxter
V

&

Company

Member Midwest Stock

CLEVELAND

Philadelphia
Detroit

of

long

Chronicle,

Nov. 8,1956.

corporate financing

1425 N, B. C. BLDG.

for

;

fabuious

,7 Commercial

below
*'"1 •

air-conditioning,

electrical

cent rise in bond
$

favor

include

chinery,
and

-

LIABILITIES
Capital Stock
Surplus

drug,

I

groups

aircraft,

Banks

Bonds

and

Favored Groups

would

United

-

will

series

new wavs of proJlst ot labulous new ^ayS ? pr°

special

would' be
individual
issues

uic

aggressive

range

My projection

the

ui

Dow-Jones

Industrial Aver-"
The 1957 range will
probably/

our

in

dim

in
population
is :almost
certain
to
,continue for manv
manv
years

i.« 1

parsons

new

boards

pilot plant

iduuiaiune:

planning

decade

record

laboratories

the
nit;

research
,
V

solid

the

on

builders

our

biage
stage

is

for

longe-range

outlook—say for the next
as

,

taken

of New

York?

more
,

over

: ing from a
recent
address
by
Murray Shields senior partner of

probability, I envisage neither., a Z
sharp advance nor a sharp
decline,-',
but rather a wide
trading area in
age.

longer

.

these

an
average that is meaningless
when applied to individual
issues.
This diversity is not new
and it,
will most likely continue
for,the
foreseeable future. In view of this

the

be

me-

term.

is

State

an at-

measure

attractive investment

more

retards the

time from a technical viewpoint
would be an unjustined over-all

360

a

interest

josses in purchasing power: rather
more

unless

higher

and

inflation.

,«In most
jo

hardly

juncture
much

,

demands

working of compound
Probably the most d a n g e r o u
svipterest In the United States, for
thing that could occur, at this
example,' assume a capital sum

T.

Cash

moves

much more in

a

,

extremely

the-other hand,

on

initial 440-420 followed by a

an

The exti ernes of 600 and also appear improbable when the

Teletype CI

*
*

.
.

rates rise, recognizing that a nation
that- systematically
steals
away the citizens' savings is inviting an uncontrollable holocaust

closing
possible

the

over

to

tivflong-term

System

*
s:

.

their

both

on

The

500.

potential

nther hanH
other nana,

,

Boll

year.
a.ycdV.

They want better returns, and
governments, with greater or less
reluctance,
have
submitted
to

'I

result. Some capital demand, some'

to

ratios haVe

upside

*ead to mistakes, miscalculations.- possible

of

January but

three

on

low

they

wide

sues,

t

The

casions

.the

-

April.

reached in

too quickly

grow

have unstabilizing effects:

was

specialize,

market.

was

side potential,

Average

to

potential

fast? Efforts to

was

2 or *7o
oi 3%

I

stocks

have

pattern formed

458.21

as

even

term stabilizatold you that

near

indicated.

the stock market

m a xr

There may
be interruptions, we aie told, and
the average-rates oi_nse .inpn
will be modest—possibly no mOie
the rest of <iur. lives.

athan
aman

find that my graphs on the DowJones Industrial Average indicate

S°°ds boom is simply stated,

reached

•

Tl-ioro

some

is

.

but n0*. as simply answered: are
we trying to. do too much too

narrow

Industrial

*

'

a

■

lion

an

held in an extremely
trading range during 1956.
high of 524.37 in the Dow-

averages

Jones

recent

of

term,

though

a

the
broad
1957, but ' . -Two or 3% a year, on the gver-* swings of the various
averages. I
temporarily
lower age, has seemed quite harmless to told you that I look for
neither a
level of profit margins that may. many, political leaders and econo- broad advance nor
a
broad deicvc
» nnr.ni*
ih(> nowhold down earnings on the Dow- iW,5ofc .1+^^ not seem harmless valine m the stock
mists. It does not seem
cline in the stnnV market
in VnJ,
1957,
Jones
Industrials to about /the
to savers trying:,to accumulate re- but rather a trading range a bit
same level as both 1955 and 1956./sources for retirement, education
broader than in
1956 but prob¬
rocnlt
and
This should result in a proionga- 0f
in a nrn nnffa- nf their
their ; oh dren.
children, and family ahlv holding in an area bounded
family/ably helpline in
tio.n of the trading range in the emergencies.
They
have / been by 530-430 as
compared
to the
averages
that has already pre- ,alerted to their perils by noting 524-458
range of 1956.
However,
vailed since mid-1955.
•
■
how their past sayings have ae- individual issues will show
both
Looking at the stock market preciated in real value and by above and below
average price
from
a
strictly technical view--the
many
predictions
that
me action
during 1957. I told you that
point, an approach in which "T future will hold more of the same, j believe common

The market, as measured
by the

The

-

coming

indicate

forecasts

economic

drilt

_

vulnerable to

advanced

same

.continue.

;

the

over

,

irregular

extremely

an

stock ,market

may

in

are

govern-

raising the

a

.

177%

/

.

Possible

'we

and

higher level of GNP in

factor, temporary
■reached 10 years or more ago in
as that change may be. The possi1946
despite the fact that the- bility of such a temporary de; Dow-Jones
average of 30 leading
velopment is cited in the Decernindustrial

"

this

long-term
cycle of inflation' or that 'we shall
experience a rising price level for
ing that

current
in

projecting

indefinitely into the future, warn-

11

com-. vear.

but they
^

the market is in
maiKei is
of

because

issues today are still below levels

:

1957

^

to
10

level

a

over

lew suffered

y

confidence

Industrial
muusuuu
at

the

quite

It

selectiv-

extreme

Dow-Jone^
how Jones

The
ine

Average

about

of

movement

resulted

■itv
ity.

{

the^outioohfor in- are c
^mpames and
important than the broad value,

-.prai
has

pared with past ratios
are certainly not low.

mar-

fora™0*;e mteUigent
winch

dividual

17

huge amount of capital
needed to
continue our
Rowing expansion
I fold you that
interest rates will
remain high and might
even
move
higher over the longer

wage levels.
One
and more competent

more

observers

both

attackfrom

;
Irregularity

Extreme

reSult

particularly high

hears

..."

The

was

finance

to

business,- labor

ment to the problem of

rising

from, con-; stantly

order

requires

ap-

not

make

ratio

'in

The solution of the prob-

erowth

proximately 14.3. ($14.30 to buy a
$1.00 of earnings.) These indices

Market

Intelligent

More

P/E

the

vear-end

abstaining

income

sumption

ffSSSgsS-e

trader.

by

be

the

sides

SA»X«bhi

afflicting almost

order of the day,

projects

some

postponed. At the same the entire
world. This is due
community at large must mainly to political pressures to
induced to lay aside more of* sustain full employment at coil-

must

What's Ah sad in tie
Securities Market
or

and

borrowings

i"

37

time

A

Thursday, January

.,.

■

*

1

Continued from page

investor

■

■

Exchange
NEW

.Chicago
Minneapolis

San

YORK

Francisco

Hartford

Number 5604

185

Volume

.

.

The

.

Commercial

and Financial Chronicle

(235)

cosf

real

Detroit Slock Exch

ca7£

that markets

so

Citizens

■

Roy W

..

Neil of Andrew C

Loan

Corporation, con¬
committee; Eugene
Talcott, Inc., fi¬
nance
companies
committee; C.
Robert
O'Boyle, Assistant Vice-

Reid &

E.

Elects 1957 Off icers 7 SS!K ■£&&£%£

Roth,

President

of

interludes

and

recession

competition.

merciless

of

But

the

prospect is that by 1966 our gross
national product will be teaching
$630 .'billion *in 1956 dollars
which would mean that we would

101

following officers

e

.

1957:

„.

&,

White, Bower
& Prevo will continue as Auditor.

President: Warren
Baker, Simonds & Co.

A.

Wood,

.dreamed

and

Elected to the Nominating Com-

'

mittee for 1957

;

Marsh

Wire lo
'

Robert

Spicer,

Bache

mittee.

are:

a direct
private,
Morgan and Company,,
Los Angeles, California, member;,

by even our wildest optimists.",

filler; Andrew C.

Robsrf IE. Huff & Co.

Reid,

Pacific

Coast

Stock

change, with facilities

on a

Robert

J.

Besson.

with Carl M.

passed

An-

^

A. L.

associated

BROOKLYN, N. Y.
Wynne is conducting

Loeb, Rhoades & Co.,
Jan.

away

of 59.

8

•

the

at

"

•

]

Wynne Opens

age

business from

Street.:

1

Allen E„.

—

securities

a

offices

at

66

'

•

1

;

<n
LOS

■

ANGELES,

Huff

H.

Los

&

Co.

r

Angeles

Rsmbin Sales Mgr.
Of Men. Securities

Calif.'--Robert

has

been

formed

offices at; 210 West Seventh
Street to act as,wholesale dealers;
with

>

ahd traders in insurance stocks.

'Officer's

of

the

firm

new

;

■

DALLAS,

■

Tex.—Municipal Se¬
Company, First National

curities

Rel J, Rickards & Co.

are

7
•
iBank Building, have" announced
Robert H. Huff, President; A. W.
Warren A. Wood
Henry, Vander Voort the' appointment
of
James
c:
McCready,.;, :• Jr.,'
Vice-President;
f f>~v
Rambin as
and Ellenore: Chrdno,
Secretary.
Manager
of
.(...•■"■tt
'
Vice-President: Fov W
Neil
Mr. Huff, who has beep specializtheir
Sales
Andrew C. Reid & Co
•
Z. T'
■

>

ing

in

25

years,; wasformerly

:

insurance

President
r,

of

issues

Fewel

&

for
.

Co.

,.

over

:

Mr.

.

.McCready has "recently been with

Rfey0>Miller:^& ,l Co.
thereto

was A a

and

par tneY of

r."

V\

Walter*
.

--

^ \

■■■/:

-i'fi

\Two With Mario

>

treasurer:

All three
office.-'-*;.;. •,?

-

Department.

M

Henry VanderVoort,

Naurnan, McFawn

Since

& Co..

turning

were re-elected
/;
v>
:;

•

„

active

to

the

r

Oppat

as
Examiner

Mr.

served

:v

as

l^'V;

-

ST. LOUIS, Mo.—John D. Arena
^ r»
i
b ^
j
and Ralph F.. Vender Meulen are
■.

-

Of

Rambin

C.

H.

Securities

Rambin

-

in

the

of

Munic ipa 1
Sales Manager
James

I

n s

t, i t

tional

*

,

ac¬

CLEVELAND
♦

,

"

'

'-

VS

-K; \ M»:nicks Upens; *.•?-*

•AUSTIN, Tex—R

Held

CINCINNATI 2, OHIO

14, OHIO "v

•

Telephone Main

Telephone PRospect 1-2770

,

Teletype—-CV

1-3776

Teletype—CI 197 A CI 150

174

.

'

0.

y*«

1707 Union Central Bldg.

1556 Union Commerce Bldg.

•

u-

Diluu
counts in the
worth of R. C. O'Donnell &• Com-<
area
for
Dallas,. 'Fort
Worth
now: affiliated with Mario Investpany;-Warren A. Wood of Baker; Rauscher, Pierce & Co. Mr. Ramments,^^933 Oakridjgo Avenue.^-- Simonds & Company.- V7.
bin- is 'a;-native of Port Arthur and'
'.;,/ S
A ■_/- <■* ;.> :
Vu * : v , * The other Governors making up attended * T u lane
University,:
•

Municipal & Corporate

War,

capacity

'

C

Governors elected to the: Board

^£^5^ °f -''
ler Company; Lawrence

Force

Korean

Executive-Secretary M'
Betty N. Suiter

Underwriters and Distributors

from

duty in

Air

and-

Assistant^Secretaryv,' 1?1;

,

during the

of

'

1908

re¬

,

Announcement was also made* "p&
reappointment Of .Fred J. 11

prior

%

C.-Gorey Go;-

..ESTABLISHED

.

Vice-

Building

to

Miller Hicks

engage

the' Board-'"are" Charles E. Exley Centenary College in Shreveport
of Charles A. Parcells &Company;sand "did post-graduate work in
George A., McDowell of ,Straus/ S.MJJ. Law School at T.C.U. and

a

in

& Company, whose terms expire
Municipal Securities Company
business.in 1958; ' Harry A. Mnnnnain
Tr r>->:vin 1Q5R- Harrv a. McDonald, Jr.,T which was organized in Sentember
which was organized in September
y-v, f / y .;
^
v./j v't-'r
yv'.' ; -1956 with a capitalization of over

securities

i

i

—'

million,' specializes in the
underwriting and distribution of
general market Texas Municipal
v Bonds; "and
in Over the Counter
y Stocks
and
Corporate "Private

Retail is Our Outlet

,

M. J.
''

'•

■t/V ^

Hickey III lo Head

Red Gross Drive Div.

EDWARD H. KELLER

,

V

'

-.
■

CHICAGO,

Hickey,

TRANSIT TOWER
:

'

"'V--

(

,

SAN ANTONIO 5,

TEXAS

the

—

Matthew

J.

(Vice-President
of
Company, Inc., will

and

finance

the

head

111.

III,

Hickey

•

i»g CAPITAL

for PROGRESS

:

A? '^.jjQUS NELSON

•

-•

itT.

Is SU

Placement Loans.
-

v

,

$1 Vz

Texas National Corp.

section

of

UNDERWRITING

*

DISTRIBUTION

Red

1957

'

Telephone CApitol 7-3401

Ball Teletype SA

-

40

Cross'

Fund

The Ohio

campaign,
"Gordon'

R.

INVESTMENTS

Busi¬

Corey,

Division

ness

Chairman

the

51

of

j

N.

High St.

Columbus 15, O.

campaign
eed

a n n o u n

today.
Mr.

held

Hickey

the

same

position

Underwriters

Distributors

Dealers

dur¬

ing the
1955
campaign. His

to

J.

banks, fi¬
companies,
brokerage and real estate firms.
A 1950 graduate of Loyola Uni¬
and

of

1,800

IL©nwii

insurance

versity, Mr. Hickey is also active
in Community Fund, Heart Fund,

Private

921

at

EAST

Road,

Win-

The First Cleveland

Corporation

Member Midwest Stock Exchange
National
v

City E. 6th Building

Committee

R.




Teletype CV 443

Mr.

Chairmen

Hickey

are

Paul

Manager

2

MILWAUKEE

ST.,

members:

Other Principal Exchanges

New York Stock Exchange •

CARL

M.

CO.

RHOADES &

LOEB,

CORRESPONDENT

YORK

as

J.

Assistant

syndicate

&

I

•

.

.

.

Glore,

THROUGHOUT WISCONSIN

OFFICES
Appleton

•

Eau Ctaire
Madison
Wausau

•

Beaver Dam
Green Bay

•

West

Bend

•

Racine
.

<3-

Chippewa Falls

Janesville

•

New London

•

•

•
•

LaCrosse
Waukesha

Wisconsin Rapids

Forgan and Company, and Donald

CLEVELAND 14

Telephone PR 1-1571

assist

Vice-President
Harris Trust and Savings Bank,
bank committee; William J. Rob¬
Miller,

erts,

MASON

NEW

to

<©&

SECURITIES

INVESTMENT

225

netka.

Named

&

INCORPORATED

Boy Scouts, and Junior Achieve¬
ment activities.
He is single and
lives

it's

Hickey, III

appeal

employees

nance

coverage

Wisconsin

in

the Red

Cross

Municipal anJ Corporation Securities

for

will

group
carry

-

CV 444

Stroben,

Research

Analyst,

Glore, Forgan and Company, CoChairmen
Earl

E.

of

bonds

Ex-'

nation-'

wide scale.

drew C. Reid & Company.

!

to

the

of

com¬

•

Robert J. Besson

ingstone,
Crouse > &
Company;
Samuel Hague of Smith, Hague &
Company; Peter M. Macpherson;
George A. Miller, Ferriss, Wagner

of

Morgan & Co.,

and

the installation of

wire

and

Company, stocks and grains

Greene

Company/37 Wait
Street, New York City, announce

and

.»Charles B. Crouse of S. R. Liv¬

attain new standards of economic
ever

Counsel

as

James

McLennan,
Inc., insurance committee; War¬
ner G.
Baird, Jr., Baird and War¬
ner, Inc., real estate committee;

and Edwin Bower &

.

for

wellbeingr not

Cudlip will continue

Greene & Go. Install

finance

sumer

30

committee;

Matthews, Vice-President

'OtP0^

Court'

The

Financial Chronicle

Commercial and

,..

Thursday, January 1/, 1957

(236)

40

i

Continued from first page

■

.

.

^

.

•

•

THE

effective antitrust enforcement, however, does
end with entry of judgments prohibiting or directing

specific behavior unless tney are obeyed. In the 66 years
since the
Sherman Act's passage some 24 contempt
standing

Of this 24, one-third or eight
the past four years.
One of_

decrees.

in

brought

been

brought for violation of out¬
have

been

have

proceedings

these

the close of 1956. In
United States v. J. Myer Schine et at., 14 respondents
were found, guilty
of criminal contempt "by reason of
wilful disobedience of the judgment' entered
in an
antitrust case.
We intend to see that, once entered,
judgments are lived up to.
A matter of growing importance is the recently in¬
creased criminal penalty for antitrust violations.
This
increase from $5,000 to $50,000 has not been in effect
long enough for its impact to be measured, but the
time is approaching when this new maximum will be
in full effect.
In sentencing the defendants in a recent
criminal case, the court noted that "the maximum fine
of $5,000 for each violation ... is hardly adequate to
fit the nature and extent of the offense," but that the
new maximum did not apply to the particular indictment
which had been returned before the law became effective.
I plan in 1957 to urge passage of legislation which will
require, under certain conditions, notification to the
Department of Justice sufficiently long before consum¬
mation of a merger to permit the Department to in¬
vestigate its possible competitive effects and to take
contempt

decided at

was

cases

preventive action where that appears necessary. I shall
urge, as well, legislation to bring bank asset acquisitions
within the terms of the Clayton Act's anti-merger sec¬
tion. I believe such antitrust amendments are necessary
for the effective and even-handed law enforcement pro-,
I intend for 1957.
particularly concerned

gram
I

the problem of the*

by

am

congestion existing in state and Federal courts' dockets
and delays
in litigation.
In the conduct of antitrust
cases, we will continue to place emphasis on techniques
designed to reduce delays in bringing cases filed to final
conclusion and to keep our cases current.
In 1957 hard-hitting antitrust enforcement will provide
fair protection

effective and

quickly

as

the millions of new life
installment loan ac¬
counts; the fact that the number of checking accounts in
banks has doubled in the past 15 years; the emergence
of big government with its enormous bookkeeping prob¬
lems; the mushrooming in size and scope of operations

24.—-EDITOR.

ernest
i

acker

r.

Central

Radio and Phonograph

President, Emerson

Corporation

1957 promises to be an improvement over
1956, I expect the first six months of the new year to
be marked by extremely keen competition in the sale
of television receivers and resultant short profit margins.
Although

The gas

expectation is based upon the
overproduction
in
1956
and the
heavy inventories carried over, par¬

for

10 years

expansion which was
of the industry
1957 promises the continuation

growth

postwar

and

most optimistic predictions

beyond the

The year

ago.

this

of

high

economic

of

level

ac¬

the industry looks forward
another
10-year period of un¬

tivity
to

as

precedented growth.
Expansion and progress have keyefforts

the

noted

of

important

more

will

television

color

that

in

factor

wise contribute to

more

than

construction

War

annual

its

doubled

expenditures

its

and

generating capacity. Fore¬
casts indicate that the industry will

impor¬

enormous

i

interest

likewise

in

high fidelity
substantially

contribute

profit picture in 1957.

phono¬
the

to

"

Stanley
1956 will set

equipment

year

were

1G%>

1955

over

and

Electricity
gross

revenues

The

The

billion

1957.
gross

Gas

is

homes,
gas

tcdav
is
with assets in

healthy,

a

excess

of

seas

billion;

and

utilities

the
is

leading

number

expected

heating fuel for the nation's
of househeating customers of

to

increase

from

16,000,000

to

1960.

by

The

dynamic growth pattern in the postwar period
in both the electric and gas
utility industry is due in
large part to the increasing demands of homes, farms,
industries and

Industry
electric
tasks

maker

businesses for natural gas and
electricity.

constantly

power

and

is

utilizing

and

finding

ratural

efficiently and

pliances
Of

is

gi eat

new

c°n

be

economically

more

and

more

uses

used

while

by
to

which

perform

the

home-

labor-saving

ap¬

devices.

increasing importance

the

gas

progress




to the electric utility

being made

in the

industry

application

of

C.

figures

overseas

sales

Allyn

Inasmuch

as

as

well

as

as

an

well

optimism

At

domestic.

of paper work and the

civilian

a

as

year ago.

the

additional

Two

is

factories

are

under

now

in Japan and another in Brazil.

one

crimp

the

con¬

•

jeopardize the Free World's econ¬
bring the largest investment

or even

year

1957 should

machinery of various
1/.

our

own

domestic

both

company,

1956 will establish

in succession in which

a

and

overseas

record, each running
will be the 11th

new

The year 1956

our

sales have set

overseas

Looking to the future,

same

making

we are

basis of comparable sales increases for

new

a

our

plans

on

the

1957.

Our
organization—manufacture, sales and service—is
currently at an all-time high of 44,000. Of these, 24,000

employees
tries.

Our

mately

are in America, and 20,000 in overseas coun¬
capital expenditures for 1957 will be approxi¬

$18,000,000,

the

largest

in

the

history

of

the

company.

Few

industries are more greatly influenced by tech¬
nological advances than the office equipment companies.
Generally speaking, research and product development

always recognized the importance of research and
products. In our plans for 1957, research and prod¬
development expenditures will be at least 20% greater

new

uct

than similar

allotments for 1956.
As it enters the new
year, the
array oc products which
terms

of

' '
industry offers a broad
literally pay their own way in
efficiency and reduced operational

increased

time, the cost of clerical operations has
risen substantially, so that business is
being squeezed
ever more
tightly in the pincer-like grip of its record¬
keeping dilemma. *

.

.

?°i
tVith both demand and capacity to buy at unparal¬
leled
levels, 1857 can be
plateau for the
industry.
o.

expected

i

to

establish

a

new

kelley anderson

President, New England

Mutual Life

Insurance

Co.

steadily growing

,

as

equipment industry in
.general is looked upon as a "growth
industry." This appraisal is justified
by actual results for, as a whole, it
has grown faster than the
general

labor force is now made up of clerical
compared with only 4% about 25 years
ago.
Despite the fact that more than a billion dollars worth
of office equipment of the type which makes
direct sav¬
ings in labor was sold in 1956, there are probably several
hundred thousand more clerical workers
today than there
were

not

on over¬

increasing cost of clerical help.
One employee out of
every six this year spent his or
her time handling paper in one form or another.
Accord¬
ing to the Bureau of Census and Industry Sources, 16%
our

pro¬

business which we
have secured without overseas production fa¬

in

office

have been the mounting volume

workers

sales represents

overseas

plants/ This

foreign

year.

1957

economy during the past 10 years.
The basic elements in this
growth

of

of

about 15% ahead of 1955.

States, such forecasts ob¬

viously reflect

Stanley

only be

can

strategic
principal factor in the expansion
business.. Sixty-five per cent of the

volume of NCR's

of the companies in the indus¬

operate

the United

new

the

available

point to at least
comparable, increase over results

try

were

is

best

type during the past

many

utility

now

21,000.000

*s

a

vigorously
$17

promoting home manufacture

have

the

1955 will be at least 15%.

for the past 12 months.

last

and pipeline industry invested $1.63
facilities last year while approximately
budgeted for construction expenditures in
Natural gas sales were up
10% .over 1955 and
revenues increased 17%;.

gas
billion in

$2

industry

business

The

over

The

gas

growing

record for sales in

new

Forecasts for

8.7%.

up

overseas

Shortage of

budgets have been increased substantially each year for

vary by individual companies, but as
an over-all figure, it is indicative of
this

sales

with

at home.

past decade. The coming of electronics has been re¬
sponsible for part of this, but office equipment companies

the increased demand for products of

electric power.

billion.

$2.5

industry.

naturally

During 1956, expenditures for new
Ernest R. Acker
plant in the electric industry totaled
almost $3 billion and investment in
electric plant and property of the investor-owned elec¬
tric companies was approximately $33 billion.
This was
the fifth successive year in which construction expendi¬
exceeded

a

indicate that the increase

This will

connected

exist here

not

the

allyn

c.

President, The National Cash Register Company
office

in

overseas

our

For

Benjamin Abrams

'

The year

do

by some source of overseas production.
The establishment of overseas factories in

sales for

today.

will

problems

many

exchange and the national interest of individual

types.

plug-in radio. Low battery drain in transistor sets
such sets, in some cases,
more economical to
operate than electric sets. The continual reduction in the
cost of producing transistors will eventually result in
materially lower priced transistor sets than prevailing
The

are

record.

.

have

There

business which

omy,

Portable television receivers, which are creating
of a second television set

again
double
expenditures
and
capacity bv 1966 to meet increasing

tures

than the need in our own country.

in overseas nations to date in office

desire for the ownership

(4)

overseas nations, the need for modern equip¬
in some respects is even more compelling

many

ment abroad

Barring unexpected international developments which

makes

In
II, it

installed

demands for

in

would

1957 and in the future
industry.

graphs

to

as

differ¬

are

but the problem is basically the same. The volume
record-keeping has grown almost universally. With
undeveloped

struction,

a

(1) Color Television
(2)

well

as

ences;

cilities.

the last
will like¬

an

overseas

Inevitably, there

those in the United States.

could

part in

the

to markets

apply

also

duction

betterment.

will play

factors

Four
tant

of

a

limited extent, the conditions which I have

more

a

money

believe

become

six months of the year and

electric

the

World

since

decade

has

To

outlined

of

utility industry for many years.
the

"office automation."

locations has been the

healthier business in

a

are

already available; in addition, the year 1957 will doubt¬
less see the introduction of new products and processes
which should help considerably in efforts to achieve

:

reducing inventories and thereby

making

newer

Put another

improving data-processing

the means of vastly

way,

in the offing.

methods are

and

machines

met

ticularly at the dealer and distribu¬
tor level. Lower production rates by.-;
manufacturers
during the early
months of 1957 will have the effect

the last six months of 1957. I

paper-handling efficiency. Still

stantially improved

countries

the

and electric utility industry in 1956 marked a

of

decade

industry has not been idle. New machines dnd new ac¬
counting procedures have been devised, and have sub¬

dollar

This

of

operations, and many others.

this growing need, the office equipment

mechanization of office functions relatively

ing consumer interest and which will eventually replace

Corp.

and Electric

Gas

Hudson

firms; the trend toward greater decen¬

of industrial

In the face of

(3) Transistor radios, which are meeting with increas¬

■

•

.

policies, mortgages and

tralization

of

abrams

in the home.

President,

for example,

Consider,

ness.

the

to

energy

benjamin

the

possible.

as

,

insurance

generation of el^lcnp^®r'
Electric utility companies, individually and in partner
ship with other industries, are contributing on a l^1^
scale to the development and construction of atomic
power plants across the nation.
There are a number of complex problems, technical
and economic, which remain to be solved before such
plants wiil be able to compete with modern conventional
steam plants. While it seems probable that many atomic
plants will be built in this country during the next
10 years, it is certain that they will not render obsolete
our existing modern generating stations. Meanwhile, the
investor-owned electric industry is going forward in
its efforts to advance nuclear technology in the belief
that this form of energy will be of major importance
to the industry and its customers in years to come.
nuclear

Truly
not

'

key reason for this lag has been the staggering in¬
crease in the volume of record-keeping required of busi¬
A

of most business

instituted.

will be

work.

statements either were
publication in today ^
issue, or for mechanical reasons, could not
be accommodated therein. These will appear
"Chronicle" of Jan.

bring about a

to

Quite a number of
received too late for

in the

efforts of the office equipment industry
greater degree of automation to clerical

despite all the

STATEMENTS IN
JAN. 24TH ISSUE

MORE

filed in 1956,
The important

cases

Quite obviously, mechanization in offices has not kept
with what has occurred on the production lines,

oace

:

29 were civil and 17
criminal cases.
decision to proceed by
civil or criminal action, or by both, is based upon Con¬
siderations of what will, in the light of the paiticulai
acts involved, produce the most effective enforcement
of the law and its goals and of what is fair to the
defendant.
Criminal proceedings are generally limited
to obvious forms of per se illegality. Where an injunction
appears necessary, in addition to the deterrent element
in punishment, and where further steps must be taken
to dissipate the restraint and its effects, civil proceedings
the

Of

@2 the Year

Twm

Speaks

Business and finance

e

and

unique

acceptance and appreciation of
highly desirable features of life insur¬

ance

coverage by the American public coupled
nignest disposable income on record will
carry

of life
in

insurance to

with the
the sales

all-time high

an

1957.

This

greater acceptance and ap¬
preciation of life insurance coverage
is

no

G.
the

accident. Social Security,

mere

I.

Insurance,

widespread

ance

and
use

protection have

make

the

aware

of

surance.

more

of

insur¬

much

done

American

the

recently

group

people

to

more

advantages of life in¬

Ownership of these types of

coverages has pointed uo the need
for additional insurance for
adequate

family protection

or

retirement

in¬

comes.

People are no longer satisfied with
only enough life insurance to cover
burial

expenses.

They seek

to

nish enough
coverage to provide
«*'

\

•

•

■

/

h

.

*

O. Kelley

Anderson

fur-

income at

ve

levels ab

Continued on pciQe

,

Volume 185

-

Number 5604

.

.

,

The Commercial

and Financial Chronicle

(237)

••.

:

a

Ss-:.

.....

*

A <.'

^ >•.

'?''■•

.•

•"

••

Some

Highlights

:

•

i&

....

•

•

&&..

;>■ \ \v; /

''

y-.

X

"

V:

•.

V„( s

>

•.

.

<-.

."

¥•
w

U

..

..

W

.'?■ ••>:. j

v

J*

.' v
X-

'•

>y>->

•

*&<

'. ..'

Jk

■■■

js'S
f

>.

3^.-v'.*

V..'

:

Year Just Ended
of the

NEW

BLAST

FURNACE

SPARROWS POINT. This

AT

RISES

fur¬

new

nearing completion at the

nace,

year's end, is
current

key item in the

a

expansion

at

program

Bethlehem's Sparrows Point,

Md., plant, which will give that

plant

an

annual steel ingot

►

capac¬

ity of 8,200,000 tons, larger than
the present capacity of any other
steel

plant in the country.

THE "STOCKHOLM" GOES TO SEA

BETHLEHEM STEELS

HELP

BUILD

PENN

CENTER.

Products

from nearby Bethlehem plants are

<•

being used in the

buildings

Center,

in

Philadelphia's

steelwork from

Penn

including

plants at Bethlehem and Pottstown,

high-strength bolts from Lebanon, elevator wire
'

from Williamsport, and

Point.

,

AFTER

pair

REPAIRS.

at

The

following

Bethlehem's

56th

re¬

St.

Brooklyn Yard of the damage she
suffered in her collision with the

ropes

reinforcing bars from Sparrows

ill-fated
her

•'

COLLISION

liner "Stockholm,"

sea

Andrea

Doria,

trials with

"

y

passed

flying colors

.

and is

now

back in service.

NEW OPEN HEARTH AT LACKAWANNA. This heat of steel

is

being poured from

vided under the

a new

pro¬
YORK'S

NEW

SHOW

PLACE

of additional facilities at the

Lackawanna, N. Y., plant,
current

open-hearth furnace,

NEW

program

a

part of Bethlehem Steel's

$300,000,000 expansion program.

Opened in the late spring of 1956,
the New York Coliseum has total
exhibition
football

area

fields.

equivalent to nine
Bethlehem

fur¬

nished the 13,000 tons of steel¬
TIN-MILL FILM WINS

work

and

concrete

nearly 4,000 tons of
Steel,"

reinforcing bars.

a

"OSCAR.""Bright

movie in color telling the

story of Bethlehem tin mill products
from
the

materials

raw

finished

"tin"

to

cans

and other familiar uses,

received

the

first-place

award among

industrial

films exhibited at the 1956

Cleveland Film Festival.

f

i' K

i

>*»<

l J

» t

»

i

<

Jr *

►

,

CALIFORNIA

SCHOOL

STEEL. Hillsdale

FEATURES

EXPOSED

High School at San Mateo,

Calif., is typical of
AND BRAZIL.

1956 the first

shipments of manganese ore were

brought

out of Mexico

FROM MEXICO

and

Bethlehem Steel has
new

an




new

school

on

the exterior. The steel for Hillsdale High was

interest. Below is shown the

River.

the country featuring

across

exposed structural steel, both indoors and

Brazil from properties in which

ore-loading station on the Amazon

numerous

buildings all

During

MANGANESE ORE

rolled in the Pacific Coast plants of Beth¬
SAFETY

IN

STEELMAKING

In the latest annual contest

sponsored by the Metals
Section

of the

National

Safety Council, Bethlehem's
Lackawanna, N. Y., plant
won

first

place

among

all

large steel plants. The Beth¬
lehem, Pa., plant won second

place, the Johnstown, Pa.,
plant third. Among other
Bethlehem operations hon¬
ored for safety achievements
were

plants at Sparrows

Point, Md., Steelton, Leba¬
non,

and Pottstown, pa,.(

lehem Pacific.

41

17, 1957

(233)

Continued from page

40

of

agents being done by the
life companies has played a major role in gaming for
these men the acceptance and respect which they now

being applied

axe

will

will also be improved during the year.
"Key man" and other business insurance,

together

pension trust plans will continue to grow
insurance during

insured

faster than the sales of other ordinary

There still exists a vast potential market for
this type of coverage. Some agents will continue to
push term insurance but permanent forms will continue
to be more popular.
The trend toward recognizing in the premium sched¬
ules the lower expenses and administrative costs per
dollar of coverage as the policy size increases will be
an
added factor in increasing the already very keen
competition between companies.
the

year.

In

1957 keen

in

company

managements

many

areas

to

electronic
meet

even

more

Until

the

This

rates.

trend

interest

rate

As
the

tion must be revised to
since the railroads

of the

use

motor

been

that

these

the

arm

that

so

the

of

BENNETT

package

a

plan

to

pace

Stewart-Warner

any

forecast of

We

offer

to

new

safety

and

-

We

will

net

long-term money.

new

in-

ARTHUR

It

ton-mile

"

volume

ance

Other

had

shared

possible
in

its

forward to
the

in

part

a

next

industry it

making

and,

of

benefits;

even

for

it

and

those

Commission, provide
tration

cf

the

a

growth

or

revenue

set

In

fact,

annual

Class I
has

more,

topped their record of $4 billion

in

'

.

and

fortable




way.
can

move

it

squeeze

railroad

on

continued

strong

1956,

putting

profits.

ai\_as

,

,

carry

and

an

ever

increasing

in the years to
and
to .the

enjoyable

schedules
.

plan

to

served

r

public
means

with

a

as

of

a

'

.

of-

want

intercity
„

of

travel

speed

on

".

clear

:

drastie

changes

must

be

madein

transportation

regulation if the railroad industry is to remain
finan¬
cially strong and capable of meeting the needs of an
expanding economy. The.rate of return on the net in¬
vestment in Class I railroad

property ih 1956 is expected"
barely 4% when final figures are available/ Last
year it was 4.21% and has averaged only: about 33^
to

be

can

year'ago

.

—and 1956

Stewart-Warner s

in

-7.7

:

'

favorable

as

as.

have

obtained

during

believe that such effort by our organization

significant further progress in

accomplish

of Stewart-Warner's aiversified

....

-

-

C

J.

activities.r

BACKSTRAND

•

in
all

.

t

President, Armstrong Cork Company

Company.
^

_With

_•

'

..

the

demand;" 'for
funds exceeding the supply and the
monetary authorities pursuing a
policy of restraint, money is likely
to

:

and

While the theme for America's future is
peace
pros¬
perity and progress, and the majority opinion is that
good business should continue well into 1957, it is
that

a

years

products, industrial specialties, and packaging—the three
principal
markets
served
by
the
Armstrong
Cork

'

effort to
dependable, com¬
every

maximum

was

-'Further modest gains are in prospect for business gen¬
erally in 1957, and for building materials -and flooring

by

oortion

We'also

come.

make

.
it,

best

>

7
,:

for

with .the

area

the

expect, therefore, that 1957 will be another year-

we

1957

demand

Transportation "jrf Jine

We

Given conditions

;

to

business

safety.

expansion of this

it

new

supplies

of

one

like 1956—when the achievement of real operating gains
will require intensive effort by business management.

for

is

movements

convenient

f

that

a

keep it attractive

annually.

proven

than

are

passenger

service

passenger

As a result, on Jan.
1,1957, Class
Common Carriers included only those
trucking firm*
which gross over $1,000,000
annually, while Class II in¬
cluded those grossing between
$200,000 and $1,000,000

trucking industry has

less

The wage increases, effec¬

rising costs

anticipate

and

expect

freight

of these classifications.

The

I

v

The fastest growihg
segment of aur *
piggybacking. I feel. we have only
begun to realize the terrific potential of this new service •

I

toe traditional American

25%

or

7

.

in.many of these markets also appears

.
stronger now than

dollar.

over

the Wabash System.

$200,000, have moved into
bracket within the past five
years, that the ICC
forced to reevaluate the
earning boundaries

eman<*8

of,the Wabash

nearly 4%

general good business conditions in the

gross

transport
industry. The nation's truck and bus
operators have met

1957

freight

gross revenues below

to the

expenses

-

holders in this era of extremely high taxes, constantly
rising labor costs and the resulting depreciation of the

-

with the result, that net income

The

freight

the

industry, industrial and residential suburbanination have made
great demands on the motor

and

,

were up

levels.

We have continued to emphasize advanced engineering
development, efficient manufacture and aggressive sales
effort.,. It" Ts by these means • that we hope it will be
possible to improve further the position of our stock¬

movement

already in effect.

been

essential

*

In

Class II Common Carriers, those with

Many factors hav* contributed

adjustment

emergency:freight rate increase effective Dec; 28.
while welcome, is not expected to meet' the
higher costs
of doing business which are

^n 1955, according to preliminary estimates.

so many

rate

when

greater
various hold-

cf materials and

Atkm.uu

*

was

tive last Nov. 1, and the

K.

-

perfect illus¬
in

the

before taxes'was

trucking

trend

attributed, to
in

not

equiva-%,. long history.

an

revenues

performance

last year.
Arthur

industry. In 1956 Class I Common
Carriers, those which report gross annual revenues of
$200,000

be

produce

will
record

handling, automobile and truck manufacture,

has/ b^en

increase to

reach

electronics, aircraft manufacture, and heating
conditioning—seems to be good. The-*position

air

and

The failure of the

improvement in

which

level of activity.

'may

advanced

our .company

1955

firms which operate under the
juris¬
diction of the Interstate Commerce
T. Coleman Andrews

areas

by the products-cf Stewart-Warner
Corporation — including petroleum,

v

_

materials

year

-Operating
during-1956

the
...

Carriers,

,

.

'
be

a

looks

serves.

Common

by

of commodities.'

this

successes

itself

Bennett Archamouu.t

measured

changing patterns ih the

course,

and

greater

decade

1956

of

downs
to

As

opinion; however, that—as
there will be important

■—

Fortunately, the 1957' outlook for
each of the principal industries served

v

to

can

leading insurer of trucks and buses,
American Fidelity and
Casualty Com-:
growth

'

by" a'slim margin
almost 1% despite, the 6% freight

ton-mile

I

continued

expansion in the years ahead.

pany

in

rate

demonstrate its tremendous vitality,
not only! in immediate
growth, but
also in
preparing itself for further

tw/m:

*

-

early last March.

o

companies specializing in the requirements of the

industry

i.

primarily as a result of
credit inflation.

v

.

~

t

rate increase which became effective

promise to insur-7

motor

<

■

lent

offers considerable

transport industry.:
During 1956 the trucking

Wabash

slightly higher than last
of

The year ahead

ATKINSON
*

the

on

1

Chairman of the Board,
American Fidelity & Casualty
Company

our

1956

national

wage ana

; areas 7of, business
share in tuis high

performance was nearly 2%/greater- than in
13*2% greater than in 1954. Operating revenues

1955 and
were

.

is

tin

a

President, W abash Railroad Company

Traffic

,

T, COLEMAN ANDREWS

K.

v
.

pressure

President and

be

near-record

V

whole.

activity probably
somewhat
higher in 1957

/continuing

claims

gen¬

American busi-

business

_

supply of savings available

heavy

of

of

than in 1956,

industry that, in typical American fashion, has
triumphed over the obstacles cf early, growth, and that
has made a habit of facing ever brighter horizons/;

.

directly, to the

believe that -the total

level

7

_

many

ness economy as a

our

faith and confidence in

our

become

now

wide variety of
major industrial

outlook for the

eral
.

complete

coverages.

proud to place

are

engineering

has

-

a

total operating results must

our

be related quite

great
*
_

again the life

seekers

trans¬

1

Fidelity &
with the in¬

their

cover

markets,

,

Corporation

distributed in

are

Marked Service, Inc., th^ service
has expanded, and intensified its

provide

to

service for the

they will
Dividends will also

for investment plus the
supply of new bank credit will
be sufficient to meet the demands. Once

trom

of

feet without

ARCHAMBAULT

highly diversified enterprise, with

a

New coverages have
position

a

Since

-

products which

American

in

are

we

company,

operations

which

Insurance companies with some S6 billion
testable funds available will be under

own

President, Stewart-Warner Corporation

encouraging developments in

needs of its poiicyholders.

added,

the present strong demand for money,
higher interest rates, will continue m

1957. It is unlikely that the

methods

their

on

help of subsidies.

and governments,

resultant

matured

are

portation capable of standing

been a trend among

industry.

transport

policyholders

be

with

longer monopolies and present

no

are

on

State

highways, waterways and airways has clearly

established

plowing

*

result of the many

a

surance

continue

higher in some instances.
Barring unforeseen changes in the plans of business

freight shipments. It also
regulation of transporta¬
recognize the changed conditions

tax

Federal and

insurance requirements.

funas left with the company.

pay on

that

means

earnings and through - temporary debt fi¬

However, there has

travel and the 3%

"on

has found
*

the public common carriers will be free
fairly for the freight and passengers to be
This means Congress should repeal the 10% tax

compete

moved.

high-

.

through

expansion

for

necessary

own

Casualty Company has moved to keep

will

the private and
to

speedier

through
V. *

system

pansions.

mortality and a higher return on invest¬
ments may reduce the net cost of
coverage to many
policyholders in
1957
Several
companies have an¬

iii'lhe

and

Based

population growth and other reliable
of business activity and consumer demand, it is

indices

the
million annually)
to secure the necessary capital for large-scale expansion
through merger and equity financing. Because of the
industry's attractive growth potential it can be expected
that the trend towards equity financing will continue,
and many more companies will engage in major ex¬

Improved

increases

cars.

of

top companies (those grossing over $10

into 1957.

nounced

super-highway

the in&ustry. for the most part,

capital

nancing.

I

standard

at

locomotives and

went for new-

trend

tne

expected that railroad freight traffic in 1965 may be
30 to 40%, greater than the volume being carried todav.
If the railroads are to be prepared to meet this demand

~

-

is helping to finance the new interstate

now

back its

The underwriting standards of most companies are
being liberalized to provide broader coverage and more
coverage

balance

the
on

speedier

service and lower operating costs.

dur¬

severe

year.

s

modern

[this

its real merits—rather than on a purely cost basis,
indications are, however, that the present trend toward

selling is likely to become

shops, signals and ether fixed facilities

terminals,

construction and improvement program woich com¬
menced last year. The industry expects to benefit from

on

ing the

billion, more than one-third
for necessary improvements to roadway

of which went

way

competition
possible.
Many life company managements feel the current
emphasis of selling on the basis of low net cost may be
harmful in the long run. Life insurance should be sold

cost

outlay

tax

better machines,
utilized to
as
low as

and

new

of capital expenditures

approaches SI1,3

railroads

the truck and bus industry through many-

In addition,

and the like will be
and to keep net costs

computers,

total

The

-

will intensify efforts of life
reduce operating costs. Im¬

proved methods, the use of

less than the carrying charge.
in 1956 by Class I

the investment is

on

~

..•

ago

being modernized

handling,

service to shippers.

price competition ana the general labor

shortage

be

-

age

•with

are

freight

ficient

of group cover¬

to meet insurance needs. Available types

«

.

the rates for borrowing on mew diesels
Obviously, we cannot
expected to add to our equipment fleets if the return
a year

freight cars were around 3%.

and

to,provide more ef-v for rail service, they must spend $2 billion for improve-•
loading, and more- ments to their plant and equipment each year for the
next "nine years.. This will be a continuing-challenge /
complete, mechanical care of equipment. A modern ,
which will require more than ingenuity on the part of
terminal in operation is something inspiring-to .behold.
railroad management.
*
1 \ «.
Telephone or racio communication ■% between terminal
We must have greater competitive-opportunity through¬
and truck is making possible direct contact between;
out the transportation industry so that all carriers, indrivers and dispatchers. - This results in. considerable
savings in vehicle and man-hours, as well as improved, eluding the regulated and the unregulated, the contract,
Terminals

to new situations

in new ways and

,

.

has

only

and maintenance costs.

principles of group underwriting

1957. The

.

invested

on.

capacity *
without,
changing the outside dimensions of'the equipment.-New
power units are giving greater mileage at^smaUer fuel -

and

cmjoy. There will be more training courses for new
•experienced agents in 1957 than ever before.
The rapid growth of group insurance coverage
continue in

profit.
f
'r
"*
New lightweight trailers with higher cubic
are
making it possible to increase - pay load

training of

excellent

The

right to earn an adequate rate of return
capital. Recent equipment' trust finanein*
involved net interest costs of 4kt to 5%, whereas

industry for the

that a road goes, of carry mg,
of limiting handling costs to
two operations, and
of tailoring pickup and delivery
schedules to the shippers' requirements, the trucking
industry has become indispensable as a short-haul carriei <
and more and more in demand as a long-haul carrier..
And the industry is not standing still.
It rapialy is
making the internal transition which will transform it
from small business to big business. Technological ad¬
vancements in equipment are being, utilized to reduce
>- operating costs, improve service, ana increase tne margin

sales will remain strong.

surance

ment are

Capable of going anywhere
large loads or small loads,

subsistence for a

mere

rates on current financing of equip,
adding new impetus to the case of tne railroad

The rising interest

.?

freight-all kinds of freight —with,greater speed and
lower cost Than other existing forms-of transportation.

5-

reasonable period of time after
tae death of the insured or after retirement.
In our
present economic environment the head of the average
American household wants to leave ms lamily wim mo.e
than just over one year's normal income which is all
the Insurance which he presently owns will provide,
he were to purchase enough protection to provide two
years' income, the industry would almost double the
present insurance in force. As long as this condition
exists in a prosperous economic environment, lite in¬
a

Chronicle ; ; -Thursday, January

Commercial and Financial

The
m

general

remain

tight throughout most, if
all, of 1957. Accordingly, sound

not

management
become

will
As

wage

of

finances

corporate

increasingly important.

advances

continue

pace

productivity in

and

further

many

increases

level occur, a second
still more intense

to

industries
the

in

area

"

out¬

price

deserving

management study

will be cost control.
Rapidly expand¬

ing industrial capacity and increas¬
ing competition' point to a third
management
of markets.

"must"

for
.

1957—still
.

..

since the close of-World War II.

7: 7

•

Backstrand

C. J.
:

knowledge

greater
:

7

Continued on.page

44

Volume

185,

Number 5604,.

The

.

and Financial Chronicle

43

(239)

,S
'

/

k
\

*

Steel flows

.

o.
*.

I

,

.(

%
*»

,

■}
it

A

Not

so

long

ago,

industries using;,

large quantities of steel tended to;
%

limit their operations to the

relatively few
was

areas

where steel

readily accessible.

Then the trend to decentralization
set in. To the benefit of many

communities of all sizes, industries

spread their operations far and

t,

k
H

I

1

wide

the nation. And steel,

across

too, expanded in
in many

I

many ways

directions.

and

;;

,.

'
;

Today, United States Steel operates
mines and

manufacturing plants from

Massachusetts to California. Close to

where the material will be used, these

manufacturing plants turn out rails,"

plates, bars, sheets, strip, structural
shapes, tin plate, wire, wire rope and
cable, pipe, tubing, strapping, oil-field

equipment and the like. Small users
of steel may

buy

many

"over the counter" at

of the items

:

well-stocked

warehouses of U.S. Steel from coast
to coast.

•

'3 ?
-

i

Since 1901,
pace

United States Steel has kept

with the changing requirements

of America. In the future as

past

—

as

in the

with
will

steel continues to flow

industry from sea to sea
continue to cooperate

—

we

with energy,

enterprise and faith as your

partner

in progress.

Watch THE UNITED




STATES STEI:L HOUR on

television, alternate Wednesdays,! CBS, Channel 2, at 1 0 PM

The
44

Commercial and Financial Chronicle

. . „

Thursday, January 17,

1957

(240)

Continued from page

42
then is that this new year

broad conclusion

The

will

for expanded sales and profits, per-.
haps noc to all industries and companies, but to those
which employ flexible financial policies, effective cost
control programs, and imaginative marketing plans.
Building prospects for 1957 are somewhat mixed, but,
on balance, the total dollar volume should edge forward.
offer opportunities

remains strong, re¬

demand for new housing

The basic

flecting the desire of millions of Americans enjoying
higher incomes for more space, convenience and style.
Home mortgages, however, and particularly those guar¬
anteed or insured by the Federal Government, have be¬
less

come

attractive

investors

to

interest rates gen¬

as

erally have risen in response to the record demand lor
no real improvement in the demand-supply
situation in the money and capital markets is in prospect,
it is doubtful that sufficient mortgage funds will be

funds. Since

available during
non-farm

problems of improved air space control, proximity warn¬
ing indicators,
more efficient
ground handling, new.
reservations techniques, methods
for controlling v the

perennial "no-show" evil, amOlfgtOther vital factors.....
The various indices which are employed to forecast

business combine to point
improvement during 1957. The demand

toward continued
for passenger

and cargo space should be commensurate
availability of-equipment as the car¬
to augment and modernize their fleets

continue

during the year.
•

.

will
for

repair and modernization of existing homes. Expansion
in this field is likely to offset any turther softening of
new home building. Moreover, the recent liberalization
of FHA Title I should stimulate remodeling work.
Non-residential

building,

although

All of

the pinch

feeling

the

move

forward, industrial construction is slated for

of

number

increased

our

classrooms,

the

for

school

creased emphasis on
The advantage will

lie with those -companies whose
products offer distinctive features, such as ease of main¬
tenance, sound conditioning, insulation, and more eco¬

nomical

next

several

years

are

rate of growth -in the next

*

may

do indicate
expansion so that

sound

installation costs.

we

Armstrong Cork Company's line
specialties in 1957 is brightened by the
prospect of expanded activity in the automobile in¬
dustry, as well as by rising output of machinery and
equipment. The relentless drive of industrial customers

Business

years

necessary

for

increased

material

productivity

costs

underlies

offset

to

the

strong

rising

and

wage

I

demand

for

many

special cost-saving products, such as friction materials,
adhesives, and packing and gasketing developed through
careful market and physical research.
The need to provide the consumer with
products that
appeal from the viewpoint of both appearance and
venience has brought about greater attention to

con¬

packag¬

ing

in

recent

hence

years,—

thd

packaging industry
should sustain further growth in i057.
Expanding population and purchasing power, a rising

level

of

investment

growing

in

government

plant and equipment, and

new

demands

for

goods

and

services-

suggest another record year for overall business in 1957.
Individual company
gains, however, will not come auto¬
matically, because there seems to be less
expansionary
force in the economy now than
during the past few
years. As has always been the
case, those enterprises
which do a better job of
production, merchandising,

distribution,
greatest
ing its

financial

and

success.

The

management

will

have

Armstrong organization

efforts toward these

is

the

direct¬

from

the

one

is

hand

what

I

like

to

call

"dynamic capitalism." Dynamic
capitalism means simply doing a bet¬
ter job of putting the best available
materials, muscles, and brains into
those products and services that every
individual wants. As long as the little
fellow, the customer, can take the

S.

*

C.

Beise

In

defense

There

T.

President, National Airlines
crosses the threshold

with

challenges of major

1957, it finds itself faced

proportions.
intense

The

next

application

in

12

months

will

the

bring

all-important
process preparatory to the
integra¬
tion of
turbo-prop and jet aircraft
into
the
piston-engined fleet less
than two years
away.
The magnitude of the
be

can

more

•<

•

the first

"tooling

up"

F. Nj Belgrano, Jr.

construction during 1957. Na¬
expenditures are increasing and this is

type aircraft.
frame

now

hold

jet-

type.
The major airlines in this
country
currently have on order 600 such
G.
T.
Baker
airplanes — 259 turbo-props,
costing
$323 l/z million, and 341 jets with an
Pr*ce fag of
$1,741,000,000. As a member of
the Civil Aeronautics
Board recently
observed, this bold
step represents 4 undoubtedly one of the most

courageous

the same time one of
the wisest decisions in the
annals of this nation
impossible to over¬
estimate in its great
significance to the airline industry
and to the
people of this

business

.

envisions

an

scheduled

air

fore

have

implementation

airline fleet

of

in

integrating

turbo-props

already have

new

and

aircraft

into

an

asserted

themselves in abun¬
dance and make
mandatory the evolution and develop¬
ment of radically different
approaches.

revol"tionary planning to which
arriers must

jet

age

must

the nation's air
address themselves in connection
with the
be

accomplished in concert with




and

have

seen.

or

com¬

credit

It

is

a

law

which

needs

no

so

plant,

more

current

equipment,

more

finished

consumer

the suuply of those raw materials is
limited,
the price of those materials tends to
rise, as at present.
This situation will continue
throughout the coming year.

A

rising demand for raw materials by all sectors of our
economy will continue.
Federal, state, and local governments must produce
national defense

construct

more

items, will build more roads, will
schools, more sanitation facilities, and

other public works.
More

will

be

employed than

ever before
in
The take-home pav of all of
them, in general, will be greater. As in
preceding years,
they will devote part of their rising income to an in¬

history of the nation.

crease

in

savings deposits, savings bonds, insurance poli¬
cies, and retirement benefits. They will also wish to
spend more on -such things as automobiles,- appliances,
travel, and leisure activities.
The business world will do its best to
supply the
creased needs and desires of all

lifeblood

the

are

ROBERT S.

of

an

ex¬

BELL

Our

forecasts for

1957

point to

a

in¬

buyers, both public and
private. In many cases, firms already are
operating at
full or near-full
capacity. Some of them will plan to

of increasing

year

activity in the two major fields in which
is

our

company

presently

engaged. Our Home Products Division is
primarily devoted to the manufacturing of radio, Hi-Fi,
and

TV

products for the consumer,

our

Technical Products Division

.

.

designs and manufactures electronic

equipment, most of which is directly
or
indirectly for the Armed Forces.
While

have

we

television
markets

as

for

1956

treated

field,

one

these

necessarily the
in

the

in

the

radio

and

actually the

products
For

same.

sale of

radios

not

are

example,
increased

1955, with¬
the sales of

over

industry, while

television

decreased

approximately

8%. We believe that the radio
ket will hold up in 1957,

mar¬

principally

because
the
set

of

the

consumer

with

a

present
of

new

low

cost

replacing

model.

his

The

to
Robert S. Bell

old

current

interest
to

a

in Hi-Fidelity
is also expected
high level of radio sales in 1957.

to

The television market for 1957 should be

theyear

enaNLriyentories, there is bound to be

scramble

contribute

good, taking

whole. Because of the relatively high year-

as a

a

competitive

during the first four to six months, in order to
for the new models which are generally in¬

make way

troduced
persons

econ¬

President, Packard-Bell Company

approximately 20%

items and

more

our

year

univer¬

the demand for
money or credit increases and
supply is limited, the price of credit—the interest

more

This demand

-

resources

and

:

rate—tends to rise, as at present. In the same
way, when
the demand for raw materials increases in order
to make

the

jets
entirely new concept of procedures in
transportation. Problems which never be¬

arisen

about

.

country."

Widespread

The ultimate result is fascism

restric¬

When
the

conventional

.

all know

principal field of banking. Because it is
sal, it is necessarv to interpret it correctly.

$2 billion in firm orders and
options
for
turbo-props and jets—not includ¬
ing additional new transports of the

and at

we

own

than

more

more

administration, yet
applies equitably. It holds uniformly for both the large
and the small in every field of
endeavor, Including my

Five United States air¬

builders

and

regulation,

munism, the wanton destruction and ruthless terror which

mand.

fully

for

tive regulations.

more numerous

demand for credit.

present at all levels in

governments..

may

year as in those past, I will
dynamic capitalism. I prefer those
ways, too, for the freedom they give to the operation of
a very old and natural law—the law of
supply and de¬

undertaking

industry's commitment

inevitably to

by an expansion in commercial
can
expect to see a

;

Obviously, in the coming

appreciated by
considering thd tremendous stake of
the

it leads

a

in a manner m ^ronrnte ihe'tniaximum .growth
production, with .particular cojiqern being directed
toward the needs of small business .firms which do not
have access to national capital markets.
The same policies will be pursued
during the coming

coun¬

regarding what

participating in

funds

work for the ways of

1

.

rules

are

.and

high-minded and well-intentioned the

ever

;AS™e .scheduled airline industry

of

are

we

panding economy.. During the past year bankers have
demonstrated a high sense of responsibility in meeting
credit needs. .Every effort hasybeen.unade to advance

be produced, regu¬
lations for how much may be sold; and restrictions lim¬
iting how these operations may be brought about.- How¬

BAKJER

other West¬

construction. ' We

ing encroachment of rules, regulations, and restrictions.

G.

and the

particular import to the West.
Development of our economic muscles has been paral¬

Reliable

It has been proved time
and again that it can and will work.
creep-

even

year.

moderate growth in total

tional

tional

great,

a

conse¬

be

it stems from consumers, farmers, manufacturers,
merchants A^d "builders" as well as local state and na¬

quality at a cheaper, price-will
stay in business. Dynamic capitalism
calls for hard work and a continual,',

is

economy,

outlays^ will

omy;

better

It made this

bur

California
States

than offset

more

industrial

and

leled by an increased
is tremendous and is

for his work and do with it what
wants, then the company that can
give him that item or service \Vith

effort to improve.

been

of

..

he

try

<

.

,

pay

On the other hand there

ends.

Corporation

one

never-ending struggle between two completely different
forces—two unalterably opposed ways of doing business.
On

consumer

vigorous and virile growth, sparked by contributions
and demands of a steadily increasing population,
■v" A decrease in residential building -construction has

respect," the year 1957 will not differ
previous years. It will see the continuation of a

least in

to

:

larger next

look to

BELGRANO, JR.

President, Transamerica
At

and

and

quently .these

ern

N.

There is

year.

industry have not.
yet attained the degree of plant and
equipment e x p a n s i o n considered

industrial

F.

income

consumer

the future with confidence.

The outlook for the

activity

spending for the 12 months ahead.

continued

a

high

evidence that we will progress
higher levels of production, sales,

to

years, never-

theless they

of

momentum

surely

a

be slightly less than that of the

most recent spectacular
:

Alexander M. Beebee

of

every

that the

few

matter

a

'

-early months of the

•

While the indications

the achieve-

as

become

carry over into 1957 and
find business especially active in the

facilities of

our

1956
"

This
will

To

approximately $15 to $20 million
year for the next several years.

of

record.

aver¬

to 8%.

that the total

ago

accurate

proven

ments

loads will require

added investments in

products imply the need for in¬
sales and merchandising activities.

many

the

meet these added

program should expand in 1957.
V
Although the demand for flooring products and other
building materials will be larger in 1957, recent capacity

•

growth in the demand for.,

aging approximately 6%

building

increases

These estimates have
•'

services—gas, electric and steam

—for

widely recognized need

yeai*

a

activity of our people would continue to in¬

crease.

studies thus far indicate k

our

continued

is expected to advance slightly next year.
physical volume of commercial activity may

still further gains. In the light of
for
an

'

generally predicted

was

economic

quately to meet the demands placed

of tight money,

While

and Savings Association, San Francisco, Calif.
It

study very

thoroughly the economic prospects of the area we serve
in
order
that
we
may .plan
ade¬
upon us.

CLARK BEISE

President, Bank of America National Trust

;'V

■

Being in the utility business, naturally we

crippling price rises.

economic gains in

true

S.

and Electric Corporation

Many families facing financing problems in their quest
more
modern housing will shift their interest to

healthy gross national product of about

a

If, on the other hand, there is a wild and
speculative scramble for raw materials and goods, cur¬
rent inflationary tendencies will grow and will dissipate

Board, Rochester Gas

of the

Chairman

see

BEEBEE

M.

ALEXANDER

the coming year to support a level of
starts mucn in excess of a million

housing

should

$430 billion.

confidence.

and the future can be viewed with

achieved

it.', The added demand for goods-with which to
capacity puts an increased burden on existing
capacity to supply those goods. For the good of our econ¬
omy, therefore, it is necessary that the business world
be realistic and hard-headed in judging what their sales

tioned by

we

and while it
be impossible to resolve many of the major problems
a
long time to come, marked progress is being

recognize the magnitude of the job ahead,

for

of

...

.

industry are not thoroughly aware of their responsibili¬
ties to the travelling and the shipping public.
They

units.

not

,

that the best minds in this

There is no reason to feel

ber

or

potential is.- Then with" firm determination, they may
gauge their production schedules, inventory levels, and
working capital requirements to realizable fact rather
than to hoped-for illusion.
If this clear thinking and hard work are
accomplished,

with the increased
riers

ment,

expand

the airline

in

trends

future

their capacity by an addition of plant; equipinventory. It is this group that should remem¬
the law of supply and demand and should be cau¬

expand

^

around July 1. We believe that the last six

months o'f the year will

more

than compensate

earlier period. Color TV, while
it was originally anticipated to

for the

still not the factor that

be, will continue to grow,

particularly in the fall months
portable

TV

number

of

set

will

sales,

continue

even

satisfactory profit

for

of the year. The
to account for

though
any

it

has

not

manufacturer.

so-called
a

sizable

produced
We look

a

for

about 7.2 million units to be

sold in 1957, which would
history.
Turning to the field'of more highly technical elec-

make it

.

the

second

,1.

best in

:

Continued

on

page

40

»

Volume-185

;

Number 5604




r.";

The
Commercial and Financial
Chronicle

(241)

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For information about NARCAST, write Federal

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Telephone and Radio Company,

a

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45

(242)

to spend over

believe that 1957 will be an even
bigger year than 1956. The defense budget will be main-'
tamed at the present high level, or possibly increased,
to add emphasis to the missile development program.
Every indication is that an increasingly larger share of
defense dollars will be channeled into electronics, and
consequently we expect 1957 to be another record year.
For our own
company
we expect
1957 to be our
largest year, or very close to it, in sales. We expect our
sales to top $30,000,000, and our net profit before taxes
products,

tronic

we

million.

to exceed $2

outlook

The

the coming year

for

insurance

life

for

favorable. Both for the companies
policyholders, the future looks bright. The
insurance bids fair to decline as policynolders

could hardly be more

and

their

cost

of

dividends

will again reach

of insurance

Sales

increase.

certain to

seem

higher levels in 1957. New policies /
which the companies have recently
introduced, plus sales forces which
are
ever
becoming more efficient,
seem certain to bring this about.
~
The companies' investment portfolios were never in a moi'e health¬

the

rapid

growth
enabled

has

force

their

continue

to

ratios

the

reduction

in

new

in the

surance

of

if

Claude

L.

Benner

business decline? Is

alone should

money

it somewhat doubtful
that the level of business can continue upward throughout the year. They are ~ the ever-mounting wage in¬
creases,
rising prices and higher interest rates. The
higher prices have mainly been caused by wage in¬
creases in excess of increased productivity. The higher
make

interest rates have resulted from

an

attempt to expand

increase

additional

proximately

-

Great Britain. *

/■.. '

"

The

expenditure of ap¬

will

billion

$211/4

go;',

and

of

rapid rise -in consumer incomes provided infla¬
tionary forces do not have to be severely checked by

a ■;

in

market

be

there

in

1957.

R.

.

which

jrroney supply and substitute bank credit
savings, interest rates will remain high and the
higher rates coupled with the higher prices will inevi¬
tably cut down consumer demand sufficiently to slow
up business activity.

Increasingly in the months ahead, the country is going
to

come

up-against the hard economic fact that wage

Although

industry in particular is
vulnerable since it operates largely on borrowed capital,
approximately 1.000 000 new homes should be started
in 1957, compared with 1,100,000 in 1956, and a decline
in dollar volume of about 5%. This is no rigid forecast,
home

building

however, -for" demand" is

strong that

still so

Arizona has enjoyed another banner year, establishing
'

new

if money were

faced

with

the

choice

of

forcing

new

into

currency

circulation in order to validate the price rises that are
now

or

taking place and which

of permitting

mean

continued

interest rates to continue to

inflation,
rise

and

credit remain

relatively scarce until there is some slow¬
down in business
activity.
Putting the matter bluntly, so long as present labor
policies continue, the country is faced with a choice of
rising prices and continued inflation, or of tight money,
higher interest rates and some unemployment.

HON.

EZRA TAFT BENSON

Secretary of Agriculture
Agriculture
^achieved a "turn around" in 1956 and the
outlook for this basic industry for the new year is better.
Our economists expect a modest
price rise in 1957 in the
aftermath of gains scored
during' the past year. Our

expectations

expanding
tained

new

are

based in part on an

which has at¬
highs in output, employ¬

economy

ment and incomes.

despite

some

This has occurred

slackening

in

home

building, automobiles and farm

ma¬

chinery.
The net income of farm operators
turned upward in
1956, as did the

prices received.

The quantity of ag¬
ricultural exports reached the high¬
est level in 30 years. Farm

legislation gave

Ezra

Taft

Benson

us

program
many of the tools

we
need
to help fanners cut sur¬
pluses, expand markets, increase ef¬
ficiency, and boost net income. As a

consequence we
expect farm
and
ranch people to share more
fully in
our

national

income
1956

of

was

prosperity in 1957 and after.

farm

operators for the first
about 4% higher than in the

Realized net

nine
same

months

of

months of

1955—the first such rise since 1951. This came
despite
the fact that crop production
equaled the all-time high.
In

only two

years

come

increased.

other

since

1947 has the

realized

net in¬

was

One

was

the

war year of 1951 and the
1956—a year of peace. We estimate that
there
will be another small increase in
net income this year.
In November of 1956
prices were about 5% above the

low

point reached in December, 1955.
Domestic demand has been
strong and rising through¬
out most of the
period since 1951 and the number of




If,

to ease materially4 next year.

'

.

volume

.

If home

buildiAg

about

of

10%
up

business.

Non-

higher than a
11% compared

dollar

and

value

output.

of

tourist

expenditures
were also at an all-time high for. the
state.
Agricultural trends continued
mixed but total dollar income

pared

,

favorably with

year.

considerable drop in
rapidly: make
up the loss by switching aggressively to modernization.
It is not merely the myriad of old homes built before the
war that are in the market for modernization. Actually,
the 10,000,000 new homes built in more recent years
are in innumerable cases already
too small for rapidly
growing families. In thousands of cases, bedrooms must
be added or enlarged, bathrooms expanded and new ones
built, attics and basements rebuilt, and -car ports and
garages added.
'■
•'/'// / J
*',
should take

and

Military

by the rise in living costs and in basic industrial ma¬
terials, should get strongly underway in 1957, money
would become even tighter and the number of home
starts could drop below a million.
'
.

lines

most
..

ago, and 1956 retail sales were
tne
previous year.
Manufac¬
turing and mining scored phenome¬
nal gains in 1956 both in physical

reflected

the other hand, inflationary forces, as

on

in

records

employment .is

with

have fully as many new home starts in 1957 as in 1956

will

all-time

agricultural
year

could

we

increases in

excess of increased productivity inevitably
produce unemployment and that the attempt to
pass these wage increases on to the public by price rises
will keep goods on the shelf. By mid-summer we will be

BIMSON

A.

President, Valley National Bank. Phoenix, Ariz.

new

the

.

:

•

for

of savings. Unless we desire, therefore,.

excess

"

year.

CARL

'

to increase the

in

no convincing
evidence that a setback, which
only be natural after so long a period, will come
1957. In fact, all indications are that 1957 will be

Berlin

home building in 1957 ,is likely to be
somewhat smaller- than in 1956, due to tight money to

credit

is

another top
Haroid

record-breaking

a

is cloudier than a year ago but, after 10: years of boom,

/

•/ would

,

should

In 1957 it should be considerably higher. It
an average of $425 billion with ease because

the

-still" higher interest rates. The general business outlook

great stabilizing force. In 1957, for
every aouar spent in building new
homes, very roughly 80 cents
is1
likely to be spent on modernizing /
and
repairing of existing homes.- ,
This

year.

could reach

gest segments of the entire construetherefore

services at the almost fabulous rate of $414 billion

per

"

ling, maintaining and repairing
existing structures.
: >
:
Modernization is one of the big- '
is

7

.

country's business volume was colossal in 1956.
quarter, our economy was producing goods

In the third

enlarging, modernizing, remodel-

tor

the rate of 30,000,000 people a decaue. That
our existing population: in less than 17
number of persons equal to all those who inhabit

adding to

years, a

v

population. We are increasing at the rate

in

grow at

we

means

'

,

subsidization of schools, the figure could

its

million people each year. It won't be long before

of 2.8

reach about $45 billion,

eets no tighter.

tion■'industry" and

year.

however,

about $66 V4 , billion on con¬
nation in 1957, three-quarters

the

An

coming year.

factors,

,

easily reach $3 billion in 1957.
Behind the striking advance expected in most classes
of construction in 1957, is the continuous, spectacular

John^-Manville Corporation

spend

general business outlook remains as favorable as at present and

of the year, for

Three

BERLIN

billion more than in 1956, present forecasts indicate.

a

New construction

plans for continued investment
in new plant and equipment seem to insure the con¬
tinuation of a high level of busihess for the first half
of the

,

-

increases

struction throughout the

anything on the horizon that should make us look
the future with anxiety?
Certainly, not for the first

at

.

are

%

Vice-President,

there

months

•_

great superhighways

these

While

—

America. should

in¬

What is the likelihood of such a

contract stage.

.

being pushed
through the very heart of great inhabited areas, they
go into the conservation reserve.
cause the demolition of an immense number of dwell¬
45 million acres of farm land may be put into the 1957
ings—ultimately, probably, at a rate in excess of 100,000
Soil Bank
about one acre out of every nine acres
a year. TJiese must be replaced elsewhere
and are just
planted and grown.
\
beginning to become an important factor on the demand
In fiscal year 1956 we moved into channels of use at;
side of the housing equation.
;
' •
- •
home and abroad about $2.7 billion of surplus farm com¬
School construction knows no slackening. Because of
modities-—a record amount. Our agricultural export pro- •
*the almost fabulous torrent of youngsters resulting from
motion program passed an important milestone in, the
our
high birth rate, every year is bound to see more
past fiscal year* and we are apparently headed for an
money soent in this
class. Public school construction
all-time high.
*
should reach $2.35 billion in 1957,
an 11% increase
For all these reasons, I am convinced that agriculture
over
1956. And, if the Federal Government materially
is now in a position to start back up the economic ladder.
HAROLD R.

in

life

of

up over

"

companies to

sales

and conservation reserve. Farmers have
10 % million acres of winter wheat land
the 1957 Soil Bank and we expect a substantial sign¬
reserve

'

more

even

for

>

_

sector, by far the biggest

single items are highways and schools. More than $5%
billion will be soent on highways in 1957 and it could
be considerably more, depending on how fast the gigan¬
tic new national highway program can be put into actual

.

efficiently than'
usual. Nothing but a severe business
depression could cause a material
operate

age

«■

t

„

natural gas.

Dublic construction

the

In

^nr._

.

signed

and

insurance

of

telephone facilities and

operation last year after many crops had already
planted.
We have high hopes for participation in the 1957 acre-?

been

bid

decline,

mortality

condition,

fair

*

should operate
Legislative, delays brought

it into

,

.

ful

bigger scale this year.

a

billion in? 1957, a-14%

,

construction, a,giant sector.#thaL.will • spend
anvwhere between $5 and $5.75 billion in 1957, a notable
rise over 1956, should keep right on growing. There is
an almost
insatiable demand for electricity and power
in all its forms both for consumer and factory, as well as

maintaining farm income,

other basic crops.
of cropland may
In short, about 40 to

Insurance Co.

American Life

Continental

President,

on

production of. surplus com¬

■

Utility

up for soring wheat, cotton, and some
In addition, as much as 20 million acres

BENNER

CLAUDE L.

modities while

1956.

increase over

urging of

created by Congress at the

The &oil Bank,

President Eisenhower to cut

account for -about $2.75

will

It

risen. Consumers have continued
one-fourth of their disposable income jtor

has steadily

consumers

44

Continued from page

-

Chronicle t ;. Thursday, January:-1,7,,1957.

Commercial and Financial

The
46

-

Arizona

a

1957, the building trade can readily and

tion

in

.

s

the

com¬

previous

•

continues

to

lead

the

na¬

indices of growth—as
throughout most of the post¬
war period.
Taking the decade as a
whole^ we. find that Arizona ranks
many

it has

first nationally in percentage growth
of population,
agricultural income,

manufacturing production,

Carl A. Bimson

copper

output and total bank deposits.

Arizona's resident popu¬

lation has increased from 616,000 in
ofr July 1, 1956

,

1946 to 1.057,000 as
according to estimates of the U. S. Census
Current residents number about 1,100,000 as

Non-residential construction, as it now looks, should
very strong in 1957. In the great majority of cases,
expenditures in this field should be materially greater

Bureau.

in

in the past year has been the continued gains in manu¬

estimated by our bank's Research Department.

run

1957.

Perhaps the outstanding feature of Arizona's growth*

......

Factory construction will continue to boom. There are
this. Population, and therefore the
is increasing at a very rapid rate.
The South, West and Great Lakes areas particularly are

facturing activity. Industrial employment now numbers
more than
37,000 compared with about 25,000 five years
ago and 12,000 ten years ago. Expansion has been par¬
ticularly marked in electronics, precision instruments,

»

many reasons for
market for goods,

transistors and aircraft.-

developing so rapidly that even more branch factories
are required. In fact, these
regions have become so im¬
portant that some of the very largest plants are now
being located there. Technological progress continues to
pour out new products, calling for new factories. Manu¬
facturing processes and production methods are changing
so fast that
entirely new plants are required to replace
those Tapidly becoming obsolete.
•
.

For

all

these

reasons,

billion will be soent
an

increase of 5%

on

over

I expect
industrial

.

...

that

more

half

atomic

a
or

billion

Motorola

on

m

$3.2

spend close

Commercial construction reached

new;

peaks in 1956.
over

-others.

the

-

important section of constructidn that in¬
cludes churches, non governmental schools and
hospitals,
social and recreational centers should
grow sharply in
very

1957

a^ this class is still way behind iheihousiilg boom.

has two p^nts in operation and

a

third

Tne latter will be devoted

ex¬

steadily.

country, Arizona's 1957
respects and uncertain in
Our momentum should
carry us forward for at
is

excellent in

some

"least several months.

At the same time there are certain
adverse factors which cannot be ignored. We have a very
seHous drought situation
throughout the southwest which

country,

The

princi¬

During the year both Sperry
Rand and General Electric officially announced plans to
establish plants in the Phoenix area. In
Tucson, Douglas
Aircraft and Hughes Tool Co. are the
largest manufac¬
turers now in operation
and, in both cases, output an<^

outlook

with a huge concentration in New York. At
least $1.4 billion will be spent in 1957 on;offices and
warehouse construction, exceeding the. 1956 figure
by
6%. In other types of commercial
construction—stores,
restaurants, shopping centers, garages, some decline is
possible.
d

our

In common with the rest of the

military "needs.

New office skyscrapers rose like mushrooms all

area

Manufacturing, Goodyear Air-

employment have continued to rise

government ^plants, mainly

related to

now

nearing completion.
clusively to transistors.

1957,

In; the Phoenix

AiResearch

one

1956. In addition to these civilian

dollars

otherwise

than

are

craft, Motorola and Reynolds Metals. All of these com¬
panies have further expanded their plant capacity in the
past year.

.

construction in

expenditures, the government is expected to
to

pal plants
.

is

severely, damaging the livestock industry. The tight
situation is also having its effect on residential
building and the financing of some local government
projects.
money

'

|

Although higher interest rates are not universally pop¬
ular, they do augur well for bank earnings this year.-Our

Continued

on

page

48

Number 5604v.-

185

Volume

Continued from first

.

The Commercial

and Financial Chronicle

page

•

**'

prove

a

preventive

of

As' We See It

■

-the

for ,the
whole of 1956 is this rate of
than

,

Reserve

activity, that a very consider¬
ofthis

Willingness to

.would

year

be>-

re¬

make

things
much

•

of

almost

The

the

to
-

-

1957 is
produce
than

items

be

could

Outlays

a

,

high- and

very

that

sible
ther

quite

appears

may

well in

in

-

vear

sively changed

:

less

hardly

'

a

disposition

Add all this up

«total

in

the

or

and

a

quite

market

value of

output seems clearly in¬

dicated-—assuming the

★

are

some

tined

continue

to

;'

..

★

★

later

runs

about

as

course
wide*-

Such adverse factors

partly reflecting
output and nartlv higher
-—

★

★

★

★

'hile we are not

★

★

v

/

★

★

★

■

★

..

which

tions

such

as
-

★

gazing into crystal

Public

Service Electric

and Gas

Company has

vt ■

i

between

now

dollars indicates

and

our

1965 could exceed

one

belief in the continued

for

envisaged

our

i

hope -.is

Ground

billion

growth of

electric and gas systems.

For

not

kilowatts

tended..

or even

Industrial

areas,

a

and ;, that

trend

clearly still continuing.




may

present^ place a limit

expansion

further

is business, but it is a

Gen¬ ing

ir

influence

>

of

restrainv

which

could

►

.

.that

Jersey is growing

...

and

growing along with this great state.

"face-lifting"

as seen

in

many

New Jersey
con¬

healthy population growths.

The years
and

that New

particularly in Newark; residential sections

tinue their

degree not experienced

is

since the end of 1950.

development is vibrant; urban redevelopment

is shown in the

They are not only ex¬

the building heating customers have

per cent

means

Public Service

basically

in

270

All of this

policy. Banks
now quite ex-.

tended; their assets are

upon

that its electric

by 1965, which is double the load in 1955.

In the gas business,
increased by

Federal Reserve
of all sorts are

company expects

system load will have increased to about four million

4

merely

example, the

for

certainly

these.

•.

Certainly the fact that the company's capital expendi¬

tures

lacking. .Abnormal, or> infla-*
tionary factors usually gain

mot

.

formulated for the future.

,

estly to be hoped that the <
extraordinary volume, of pro-now

accustomed to

ahead hold great promise for New Jersey

for Public Service.

We

are

dedicated

to

promise.

PVBLICSjj SERVICE
east

...

at the crossroads of the

xj/

—

*'

V

balls, it is significant to study the present plans

in the usual statistics

character

prices

*

these

as

quidity ratio. A more.liberal
output will reflect
policv on the part of the Fed¬
them quite
observably-. In¬ eral Reserve authorities would
creases in gross national prod¬
not, obviously, relieve this sit¬
uct
already reported, of uation. This state of affairs

real

★

★

costly.

total

course, are of this same mixed

-k

_

of

will,

"

prove

physical output and how
assets."
Commercial
banks,
merely the > result * of
the * source : of
inflationary
higher prices is another and
funds as a rule, find them¬
more difficult
question. There
selves in doubt about further
is, obviously, every indication
extension of credit to business
that prices will work higher,
and that any -substantial in¬ by reason of their capital- po¬
sition, and their so-called Ti--;
of

1_

demand not des¬

a

course,

★

who
occurring

many

of it is

much

creases

officyj

★

★

.

,

cent years

'

business from

Honeydale Road.

Mile

AHEAD

in re¬
in the form of non¬
ly expected—but how much
of the increase will be in ac¬ governmental obligations —
now frequently termed "rjsk
tual
of affairs

V2

*

the

in

.construction --this

appears

current

1956

-

at

appear'

appreciable increase over

-

securities

a

*

ability of consumers to absorb most headway in a- situation
large volumes of general mer¬ where abundant funds can be
chandise. The expenditures of "had at relatively low rates of
interest. That condition, while
government,' Federal, state
and local, • are certain * to be formerly present,- is'now defi¬
higher than last year by a nitely a thing cf the past,
and the cause of the change is
substantial amount.
;

De¬

ap¬

productive facilities—

duction

in the. cards.
Retail figures fail to disclose
any reason for anxiety about
the

Industrial

.

year will, if it actually
somewhat .materializes; not bring in its
clear, but further decline Train such untoward-condi¬

\

\

1956% by

margin.-

Residential

.' prospects

,

★

.

1957 models

that of

substantial

•

International

velopment Company.

★

the
rise

-

tends

..

*

well this

of

Wedfegartner Opens
BROWNSVILLE, Tex. — Van
Doran Wedegartner is engaging ii

result

might or might not bear fruit
sit¬ in the course of the-'current
uation in the. motor industry
:year. They often take time to
is certainly much better this come to
maturity.
:
;
year than last, and most stu¬
Ground for Hope
dents of the industry expect
It is, of course, most earn¬
demand for the more extenexceed

3715

at

Dickason Avenue under the name

quite possible for industry

of last. The inventory

to

offices

from

business

ex¬

for. this

cess

;

Van Doran

DALLAS, Tex.—William K. St.
Claire is engaging in a securities
■>

survive

not

change

—to meet

fig¬

yield

ure

.

long as
It should

so

.

of time. Unwise expan¬

there

think

not

a

can

exact' its- toll

course

and

A continuation of the

current rate would

later

prices- which

sion of

pos¬
fur¬

substantial

a

growth in them

occur.

but there
indication that it

★

moderate t

tainly
•*'

they will continue to be,

although it

Form Internat'l Ind.

change
no

preciably to cut off potential
demand, would almost cer-.

indicate

forecasts

or

business weather, or any

new
automo¬
Investment outlays are

running

that

Forge & Co.

mean,' and harm that

sooner

in costs that

of

usual

the

-

probably would
substantial. Any increase

a
gap left by. residential con¬ 'in
struction and lower consumer

still

Lfi

La Forge & Wyandt Co. and prio?
thereto was head of John G. Xa

of- the fac¬

could be and

;

■

plant and; equipment
outlays in 1956 stepped into

biles.

Mr.

partner in

a

danger appears to
real, whatever the term is

taken to

New

purchases

business.

formerly

was

tion."* The
-

production

areas

Plant

New

some

P^orge

presently go into
of harmful "infla¬

period

be

v

as-yet

and trade to do very

are

Street to continue

investment

shall not

we

*.a

in 1956, and in

case

well be down.

may

be

worker.

These

smaller

in

-

certain

other

some

depres¬

inflated boom.

an

South La Salle
his

.

year "i

certain

r

of

■*

is

sion and

us

CHICAGO, 111. — John G. Lh
has formed John G. L,i
Forge & Co. with offices at 135

Forge

in tors which raise the question
1955, and others in many minds as to whether

turned "out

-more

save

Farms John G. La Forge Co,

circumstances doubtless

i it -should

slackening rate of output

per

in-

-

quantities

larger

amounts.'

was

produced

to

from both

them

and

and self-

sense

both

of

under

—

inflation threatens.

1956 than in
were

larger share
output. Costs.are also

some

change

will be abandoned

were <

- .
*

into debt to

as rising, particularly as a result
output- of-rising wages and perhaps

changed and is in proc¬
of further change. Some

ess

a

of the

go
bid for a

of, course,

a

of the total

were,

has

being produced and

the product mix;

sure,

it

good

-

quired to prevent a new rec¬
being made in 1957. JTo
be

the

restraint

and there is

ord

,

to

optimism is running high,
this time provided
a rather
general another brake upon too much
disposition to demand * more enthusiasm. This policy could,

than is

We shall have,to look

sumer.

authorities

has up to

able decline in the latter part

undue

enlargement of indebtedness
either
by business or con¬

The general attitude of the

Federal

eral

average

without further

later year

serious trouble.

fulfilling

*
#

The

48

Chronicle1.. Thursday, January 17, 1957

Commercial and Financial

(244)

large

upward

activity in 1957.

FRANK H. BISHOP

About

one

predicted that Allied would

year ago we

more

approximately $19,095,000 in 1955 to
$26,500,000 in 1956. While the profit

plier springs

mostly from the fact

increased our large die, tool,

record-breaking

over

the

value of these vehicles

half years and was financed
term borrowings, as well as

through equity sales, longretaining a portion of the
profit in the business. The increased service for large
sheet

metal

die

Allied. Starting

with

been

a

growing thing with

the original iron and steel dies,
(zinc alloy) fast-casting dies

into the Allite

moved

we

has

users

$hd finally to plastic sheet metal dies and combinations
of plastic, Allite and hard metals.
In addition to this
we
have established a very unusual prototype sheet
metal shop for stamping pre-production model panels.
Finally, we recently built and equipped a plant to sup¬
ply large sheet metal stampings for special short-run
automobiles, trucks, and other durables. This rounded
out and improved
sheet metal die and parts service
will continue to assure for Allied a larger share of the
tooling market for model changes of durable goods.
The second large

^

.

in

,;

BLOCK

L.

JOSEPH

V

Steel Company

President, Inland

1955 and almost 100% more than the

Nineteen Hundred and Fifty-seven should be an¬
other good year for the steel industry. Operations are
now
at or above rated capacity, arid present demand
indicates that this should be sus;
_•

still very much in evi¬
dence, and include
the increasing
costs
of
transporting
goods,
the
multi-billion-dollar Federal highway

pliance industries in any one year.
increase in plant investment
was made over the last two and
a

come.

was

1950 total.

This

Uisitup

to

time

torn yearly expansion, the

five million

a

should be closer to seven million tons, which
spells prosperity for the industry for a long

placed in service by our
industry, an increase of around 12%
gory

largest usage of these services ever
recorded by the automotive and ap¬
ki.

indeed

vehicle weight and over cate¬

gross

of

Instead

figure

19,501-pound

worth of trucks in the

prototype and short-run stampings
facilities
coincidentally
with the

Frank

go-ahead on their estimated $20 billion spending for
new equipment over the next ten years, the demand for
steel should continue upward.
A
V

During 1956 more trtan $600,000,000

will exceed the 1955 profit of
$1,200,000 by approximately 50%.
This unusual improvement for an
automotive die, tool and parts sup¬

full

into

their

ducers should be able to match

ahead are even more favorable

Once the Federal highway program gets
swing and the railroad industry gives the

than for 1957.

Heavy-duty truck pro¬

1957.

for the industry in

year

computed, 11

year

we

Estimates for the years

record year for manufacturers of heavy-

duty trucks and truck tractors and for the parts sales
and service business, all signs point to another active

figures imply that the full

months

that

a

even more

1956 sales volume
in the 12 months just ahead.
•

1956 has not been

for

Following

call upon steel to provide

shortly, there will be a big
tankers in 1957.

up

Chairman, The White Motor Company

than a 25% increase in sales during 1956
„,th a substantial improvement in profit. The actual
sales figure, which has just been compiled, indicates an
increase of almost 40%, going from
ttfow

dependent the world is

example of how

one

steel. The full force of the oil cutoff through Suez
has not yet been felt. If the Suez problem is not cleaned
upon

BLACK

F.

ready to meet

iust

is

This 'means
200 million,

providing for the expanding economy, steel
world crises. The Suez situation

Besides
mnrt: be

:

ROBERT

Products Corporation

President, Allied

1900. The average family of
today calls for a steel capacity of three tons.
that by 1970, when the population reaches
we will need 200 million tuns of steel.
since

basis

President has able and effective

portfolio of loans on which rates are
in keeping with present money
market conditions. Investment yields on bonds are also
much higher than a year ago. As a result both gross and
net earnings in the banking business are likely to show
substantial gains in 1957,
banks have a

for steel fivefold, on a per capita
four people

increased the demand

Wrongly that our
control of' our affairs
In international matters. We believe- firmly that if any¬
one can do the job, he is the man to steer our national
ship through the troubled waters of 1957 and future
years toward a just and lasting peace with all nationsAll in all, we are looking for most segments of busi¬
ness, including'. Allied, to continue at a high level oi
be, because we feel very

there will

46

Continued from page

The

behind

reasons

growth

this

steady

are

program,
expansion
decentralization
of

very

population,

of

F.

Black

as

As

higher

higher

and
are

and

emergency

This

or

permanent

ing

greater

retail.

Motor

history, which includes several

specifically for

situation
restraining in¬

money
a

to consumer pur¬

expenditures.

capital

and

Joseph

for

L. Block

about 90%
of capacity. Should this come to pass, it will be
record for the industry.
million

White models de¬

new

be

Nevertheless, total production
1957
should
approximate 120

in

economical over-the-highway movement of goods and new Autocar models for
specialized extra-heavy hauling in construction and roadbuilding work.
signed

the

chasing

faster time. White
heads into 1957 with its most complete line in
consignees

to

should

fluence in respect

a

payloads

tight

is

which

additional

An

inventories.

up

factor

growing potential market for the new¬
types of trucks and truck tractors that can transport

est

taper¬

with a lower rate
operations for the last half of the
year.
I say this because I believe
steel consumers are gradually build¬

of

imposed and labor costs of transporting

sell at wholesale

or

presents

likely to

seems

ing off in demand

goods continue to edge upward, private and contract
shippers in general are more determined than ever to
find more economical means of moving the goods they
produce

it

this,

that there would be some

me

population, construction of shopping centers at the rate
of 600 a year and others.
freight rates

well.

Beyond

and

industry

the first quarter, and
likely for the second quarter

tained through
Robert

more

tons

of ingots of

another

segment of our business, namely the
ROGER M. BLOUGH
interchangeable punch and button
die business, which we term pur "small tooling" ac¬
Chairman of the Board, United States Steel Corp.
tivity, also recorded a sizable increase for the eighth con¬
An important force injected into the long-term outlook ..*■
The steel industry enters 1957 at a record-breaking
secutive year. In the last two years this activity has also
for our industry is the fact that the current year will
had a new plant addition and improved equipment to
rate of production and there are indications that steel
see the
beginning of the influx of new orders for offprovide for volume increases and new fields being ex¬
consumption may well set a new record during the
the-highway construction vehicles and equipment as a
plored in the "small tooling" business.
next six months. Had it not been for a 34-day strike in
result of the $30-billion-plus governemnt road building
The third large segment of our business, namely the
mid-1956, the past year undoubtedly
program.
This can be likened to a "pilot-light," con¬
production of component parts, decreased substantially
would have established a new
tributing new business to our industry and to White
in 1956 contrasted with 1955, particularly for the auto¬
production record.
Now, with a
Motor for the next decade or more.
motive industry. These parts include cold-forged parts,
three-year no-strike contract the steel
This program will benefit our industry in two ways.
powdered metal parts, cold-flow parts and precisionindustry may look forwar to unFirst, actual construction operations on the highways
ground parts. A reduction in volume generated keen,
terrupted production in serving its
are going
to require the use of thousands of all types
price competition and resulted in a lower margin of
market.
v:
XvJ'''§
of heavy-duty
trucks in which
White and
Autocar
profit on the automotive end of this business in 1956. *
Despite the problems which con¬
specialize; and second, after the highways are completed
However, the aircraft engine precision parts line showed
front the steel industry we enter the
they will open up new vistas,' both .in location of new <
a reasonably good
improvement in 1956 over 1955, both
year 1957 with expectations of good
industries and in more convenient through-ways, for
in volume and profit attainment,
steel production for some months to
the facilities offered by trucks.
>
v
;
Now, looking into 1957, by study as well as discussion
come.
This expectation is supported
of the business expectations of the automotive
industry
by the strength of the over-all econWILBUR T. BLAIR
,
with some of its leaders in Detroit, we are
forecasting
oray and of the consuming industries
KB

Hercules

and

v

f

that 1957 will

see about 10% more cars and trucks
sold,
than 1956. We also believe that the
tooling work in 1957,
at least at the present writing, will not

approach the
the truck and

extraordinarily large tooling programs
automobile people undertook in 1956. This is borne out
in our company by a
considerably lower backlog of tool
die work

and

at this point in

time last year,

1957 than existed at this

Viee-Presidpnt and Treasurer, Sharon Steel Corp.

not

be

for the

it

its ninth

would indicate that

nationally distributed

consecutive

year

our

perpetuate the
business during 1957.

an

volume

betterment of

this

of somewhere near 10% because
the
component parts line expected improvement should
off¬
set to a l^rge extent the reduction in
the large tooling
increase

service.

This, augmented with increases in the "small
tooling' line, plus the anticipated increase in the air¬
craft engine parts business should
net us sales approxi¬

mating

$29,000,000 for 1957. However, because
we
that price competition on all of these
items

anticipate
will

be

1956

is

more

severe, no

projected, but

formance in this

increase in the net profit

we

of

will

worlci

be

no

hope to equal the

over

1956

per¬

respect.

Naturally, this forecast
there

unusual

is predicated




on

the fact

that

change in the existing state

conditions during

may

dip

try

may

be

auto

as

the year. We do

not

think

I

M

■——
w

„■
William

F.

decline, and,
industry's;

the

below

a

90%

-

purchases by the auto indus¬
one

cause

production

item, should achieve

Now, over-all, considering the fact that we will
prob¬
ably have less tool and die work,
large gains are not
expected in 1957. We do, however, feel that we will
have

that

Steel

of moderate increase.

1956

now-

capacity level.

line of small tools,

In
addition, we feel that the aircraft engine and
guided missile business, of which we are a substantial
parts contributor, will continue to improve
particularly
under the distressed World
conditions, and that we

should

some

appears

production

increases in Federal
spending, and the maintenance of
high personal income for the greatest number of
people
ever employed in this
country. This picture on the gen¬

a

last six months, while' good,:

experience

may

about, mainly by continued large capital expenditures*

is

expect the industry'to .operate--at
10Q% capacity level. The outlook

a

of the decline,

drops

during

the first half should be better than

model changeovers. Another reason
the second is that steel, buyers may
purchase ahead to offset the antiei-

pated price rise

li.a.r

as a result °* higher

jab()r costs in tbe sec0n(j half

During

1957, the industry will
probably witness increasing prices.
The industry has
been trying to absorb the
higher costs of labor, iron ore,
scrap, coal and limestone, but the cost pressures make
increased prices almost
Even

the

cost

of

climbing upwards.
ton to build

new

a

steel

certainty.
expansion

Twenty-five

steel capacity.

has

years

been

Today, Lie figure is

over

$350 and is still rising.
And steel must continue to
expand. It is the backbone
for the continuing
economic growth of the country.

Besides
million

a

highway

r'..

"rf''

providing for the population increase of 3V2
year, steel must be available for the
expanding

This alone will require 4V2 million
tons per year for the period 1957 to 1969.
The Federal
highway program, by itself, can almost absorb the
expansion rate of five million tons per year now in
program.

progress.

The rising standard of living in the Uriited
States has

that

indicate

estimates

nation's
output of goods and services, will
upward movement well into 1957 and that
Gross National Product, the

continue its

over-all industrial

production may well establish a new
high in the first half of 1957.
We agree

-

that
iii

high

1957

more

with predictions of the automobile industry
income andv sharp styling changes

consumer

automobiles should result in the production
in 1957 than in 1956. \

of

cars

Machinery expenditures should rise slightly. Total con¬
expenditures,, aided by public utility construc¬
and highway building, will continue at a strong
pace despite some decline in. residential
construction.
-The capital goods boom, however, has begun to slow
and output in the second half of 1957 is'not likely to
struction
tion

equal the first half rate.

■

'

\

Oil and gas

drilling activity will continue to increase,
given additional impetus by uncertainties over Middle
East

United

oil, while

to meet

States shipyards will be

urgent demands for merchant shipping,

straining
particu¬

larly tankers.
Production of freight cars

ought to be at the best

level

attained in several years, and with
improved farm income
there is a better outlook for
agricultural implements.
This

steadily

ago, it cost $50 a

best

.

we

,

Our

Roger M. Blough

.

Looking over general business conditions for the coun¬
as a whole, we feel there should be a continued
slight improvement in thd industrial index, brought

which

steel.

*

1957, should* be one of the top years for the "
industry. This, of course, is not news. If steel did
break records each year, it would not continue to
the vigorous industry it has proved itself to be.
During the first half of the year,

try

eral economy

"vital to

The year
steel

,r

^

»

result

pattern
in

a

of

high

steel

level

demand

industry

and

production
rate,

operating

will
with

output probably higher in the first half of 1957 than in
tie last half.

With

..

regard

nouncements

to
have

spokesmen that
tons

of

steel

add

industry

been
up

made

to

additional capacity

it

seems

to

grow

more

f

expansion plans, an¬
to
date by
industry

than

15 million

ingot

early 1959, and
likely that the industry's plans will continue
by 1958

or

beyond the

the end of 1958.
and modernize

143 million ton total projected
This expansion program will round

by

out
existing facilities, improving the quality
Continued

on

page

50

Volume

185

Number 5604




.

.

The
Commercial and Financial Chronicle

.

Unlocking the secrets of the universe
Amazing

wonder

of natural gas ...
lump of coal. . . shining
forged from drab, brownish earth.

textile fibers

stainless steel

else that is vital to

minds and hands of

better

a

a

marvels—and nearly everything

These man-made

for

spun out

drugs squeezed from

modern living —were

born in the

research scientists in their search

understanding of

our

things of tomorrow,
Research is

the basic

he rearranges

and combines the pieces into new and

scientist takes
ture

better

as

things that help improve our lives.

Hundreds of useful products
from such basic

substances

and water. And the

as

have been created
gas, ores, air,

oil, natural

wonders yet to come, the exciting

living tiling to the people of Union

is built. The elements of the earth

which their work

are

a

constant

chal¬

lenge to their insatiable curiosity and technical skills.
FREE:

with things

a

being sought and found in the
today.

Carbide—for it is the foundation upon

world.

they are, the research
apart the raw materials of nature to cap¬
"building blocks" of the universe. Then

Never satisfied

are

research laboratories of

Learn how Union Carbide

products and research

help satisfy basic human needs. Write for "Products and
Processes'' Booklet 11.

Union Carbide
AND
3 0

EAST

CARBON
42ND

ST ft E E T

CORPORATION

QJgg

NEW

york

1 7, N. Y-

In Canada: union Carbide CANADA limited, Toronto

.

UCC's Trade-marked Products include
Synthetic Organic

Union Carbide

Eveready Flashlights and Batteries
Prest-0-Lite Acetylene
HayN'ES Steli.ite Alloys
Union Carbide
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Bakelite. Vinylite, and Krene Plastics National Carbons Crac Agricultural Chemicals Pyrofax Gas

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Dvnel Textile Fibers

Silicones

Prestone Ami-Freeze

Ei.ECTROMET Alloys and Metals

The

(246)

S3

products in many instances as well as adding
tially to capacity.
■:*
United States Steel will continue to share in

this pro¬

of expansion and modernization as it has in the
y>ast. We are ever conscious of the importance of longrange planning in our efforts to serve our customers
^.nd to anticipate future steel markets. During 1956 we
announced plans to add 670,000 ingot tons to the steelmaking capacity of U. S. Steel's Pittsburgh district plants
old 1.3 million in the Chicago area. Much of this increase
will be concentrated in heavy products, such as plates
Old- structurals now in tight supply. Other corporation
expansion programs under consideration, as well as
time schedules of those announced, will have to

the

be
Government's decision last
week not to re-open certain expansion goals.
In reviewing and evaluating the activity of the steel
Industry as well as business" in general, it must be rec¬
ognized* that forces beyond the control of business manfgement are at work in the nation. A major force is
the unremitting cost inflation within the framework of
which affairs of business have had to be conducted for

altered
The

and

the need for a
under the tax laws.

in

growing economy.
out-

times

increased

has

inflation

that

the

-.V'vy

^

:T'--.

of-

•

The

President,

The human machine

generation.

new

a

-

be

.

rheumatoid arthritis,
controlled by use of the newly dis¬

is being effectively

While

there

would warrant
demand

what

certainty

engineering and underwriting services

been

has

active

an

one

for

this branch of the insurance industry

and, overall, a satisfactory one.
Official figures are not available
at

this

writing,

in

that

indications

but

written

both

premiums the boiler and machinery
insurance
industry
set
new
high
marks in 1956. It appears likely that
writings will be found to total about

surpassed

level

the

for

increase
j-ate

in

add

which

at

an

this

volume—whidh reflects the high

industry

in

ratio

loss

24.5%

set

figures

in

line

the

1955.

should

moderate

general

increased exposure to loss.

for

should

Even

show

so,

the

rise

slightly

however, end

line

as

having

above the
of the year

produced

gain from underwriting.

of

the

general

run

The

market

of losses

to

"

their
,

'
•
Continuing research also means that
*

..

this year, we may see
the

first

certain
trated

In

heart

a

conditions

research

the

past
years

a

new

Cancer,

time.

avenue

time; perhaps

/•.

vears

have

we

'

lion

of intense laboratory

wbrfe

tent

new

steroids,

in

are

used

the
so

Increases

per

loss.

extensively in

for

costs of both
most

cost

these
new

durables,

two

power

metals

under

year as

boiler

products

and

and

and

copper

plant equipment, price

were

building

factors

raising
Prices of

materials,

moved

quickly in the losses

machinery

insurance

occur¬

policies.

manufacturing processes
which have appeared in such fields as chemicals, petro¬
chemicals, plastics and synthetic fibres, are engaging
the

close

attention

of

of

new*

the

persons

•

.

re-

-

The broad,
sumers' expenditures for 1956 will hit
yearSi

Once

heights,

the

distilled

spirits

-Inequitable taxation
situation

as

soundness of the pharmaceutical

At present, all indications

industry will have
range

a

are

keynote

are

the future of
to

industry is research.
that the pharmaceutical

favorable year in 1957

future outlook is

as

our

the? financial

bright

as

The long-

the present,

period.
record
participation in

industry

the depression level.

responsibility

must bear the main

1956

state

saw

industry continue upward.

and

local

that

the

promised

reduction

in

seems

April.

granted.
in

taxation

A scheduled

in the $10.50 per gallon Federal excise tax rate
lor last April did not occur, and

there

the

level in

its lowest

comparable to that of mid 1936's depression
again, while the economy has climbed to

this growth continues at

that accounts for the'''unexpected" advances.

laboratories

of their

estimated-1.63%

an

power for distilled spirits;'as,-against 1.65% in
Though consumption will be higher, it will not keep

unknown, with the tools of knowledge we already have,

our

by
C

*

;

buying

.

this

Consequently,

(

m

,,

more importantly hecau

1956..consumers used'

our

bazards created,




,

,

not only ^because of the-v^cent-.1 -

about 6%.

for

engineering departments of
the insurance companies, not onlf in
analyzing the new
but in developing on their staffs men

•'-J

P
,

,

for

The products of

run

gallons.

vain, for in research it is the patient probing of the

industry.

though

million gallons while
at around 215-220 mil¬

-1946. though physical consumption volume -will lag

and

The time spent 011 unmarketable research work is not
in

estimated

■'

.tile ShoO per gallon increase in the Federal excise tax

variety of diseases.

a

an

ln- November, 1951, plus continually added states'taxes.
will result in dollar- volume in 1956 almost- matching

anticoagulants, and many/other sig¬

suffering from

consumer

amount soent in 1946, even

qf tlte^i

•

nificant compounds have brought new hope to millions

in

did labor costs. Price inflation

of this sort makes itself felt

New

steel

equipment and repair parts.

including

upward during the

ring

Because

for distilled

1946 reached 231

Ela

spectium antibioticb, the mental-calming drugs, the-po-

decided in¬

share of this market.

a

VV'-v/-v

.

-V

experienced the

in the

we

as

In 1957, consumer expenditures for distilled spirits
should'hit the five billion dollar mark.- Thiswould al-

fall' before 'coiicen-** v' In

may soon

of

consumption in 1957 should

of, research open-

effort.

five

in

->/

consumption in

on

cardiovascular'diseased

year,

expended $4.5 billion

jihost equal the record
..

.

crease

$4.7 billion. ;

>.Vr-'

.

more

consumers

industry should receive from the
f

riivnvprv

fl

tor

rest

each

sujmer«*pilces forr^pirit //blends .which affect only the
last two months-of the year and not in all states, the

;

-

present efforts; Frequently we find the
efficacious drugs superseded and made obsolete

suits of

was

fieldpeaiinoi

highly competitive

the lucra-

temporary development.

a

For 1956, taking into consideration higher con-

of

past

most
hv

our

and

more

1955,

spirits.

encourage

markets for pharmaceuticals all
the potential market growth for our industry.

panies in

a

Among the losses incurred during 1956 were some
fairly large ones. However, the most noticeable charac¬
teristic

In

pharmaceutical industry
expansion through¬
this-'optimistic .out-*
foi\ pha1711aeeutreal.-'.compound s: is

factors

The role of the distilled spirits industry in

will take

discovery and marketing of effective drugsm The- com¬

with

along

operated in 1956—
It appears that
the year brought the highest dollar volume of incurred
losses which the boiler and machinery insurance line
has yet sustained. The total seems to have been some¬
thing like $16,000,000. If that estimate is borne out, the
also

came

Many

.

industry produce more imaginatively beautiful gift items,
such as the Early Times Coloramic Decor Decanters, we

the

that

set

gift field is not
Wq think that it's clear that

The financial condition of our industry is-based on-the

B. Brainerd

Lyman

time..

premium

v

the expanding overseas

the $60,000,000
Naturally,

first

doubt

be

direction Tor the

tive Christmas

expanding.; The increases in birth rate, the" prolongation
of adult life due .to pharmaceutical and medical advance,

-

by almost $2,000,000, and earned

premiums

1957.

look.

ceeded those of 1954. the next highest
year,

.

-

will continue its rapid progress and
out

-

$65,000,000, With earned premiums
approximating
$62,800,000.
This
means
that written
premiums ex¬

no

We

This type of pack'aging,-however; will most likely continue to account for
the lion's share of the industry's gift sales.

be foreseen, only a possibility of. a new
contribution to scientific and medical knowledge.
is

agon

years

here; new records will in
again in 1957.
•

about reached its ceiling in returns.

'.

product could
There

five

of

cases

that it will stop

future, however; may not con¬
tinue in the decanter field since this innovation has just

has been in fields where no

Much of the research

ket.

are

earned

and

••' The

opportunity in the

its

thousand

hundred

all'likelihood

field of research'in'drugs.
Schering, for instance, has plowed back into research
each >ear, for more than a decade, more than- 10% of
every dollar income for the purpose of discovering new
compounds or improving old compounds.* Hundreds. of
new drugs
have been developed and studied in a year,
with perhaps only one or two finally reaching the mar¬
and

;

provided by the boiler and machinery
insurance companies. The year just
ended

;; J'

industry has long recognized; its responsibility-

ceutical

record,-and exceeds by far the volume of only sev¬

do not think

has not come about by, chance; nor have
discoveries all happened at once... The pharma¬

these

1957

to be nothing in sight now that
expectation of any slackening in the

a

eral
*

Such progress

seems

an

the

for

with

foresee

can

one

no

will bring,

"tvV./*;>

covered "Meti" steroid drugs.

Boiler

Steam

Hartford

For the 1956

1

yielding its secrets to the research worker. Mental
diseases'are now for the first time being effectively
treated with counteractive and calmative agents. Even

Inspection and Insurance Company

record set for the number of

new

a

holiday buying reason it is estimated that consumers
will spend approximately a quarter! billion dollars for
distilled'spirits gift packages.
:
The ' decanter volume for 1956 should run about 36
million bottles on three million cases; This would easily

is

BRAJNERD

B.

sees

solved

;/the number one crippling disease,

LYMAN

':;//. J

;

chemotherapeutic agents.
The. sex
many of the problems pf li;fe-^;vnttniber of specialties continues to grow.

and

have

health

the

we

;

/'decorative packages in the industry and 1956 was no ex¬
ception. In 1955, the trade had available approximately
: 50 decanters as well as-numerous othey decorative pack¬
ages for the consumer.
These passed the 60 mark for/
the current season, - and
in addition -to decanters the

glandular imbalance and the newer knowledge of'
vitamins and nutrition
has materially-improved

and

the cost of years ago.

over

antibiotic

hormones

find
several

facility,
equipment costs

Brown

V'

Each' year

>
Francis- C.

of the most afflicting ailments of mankind.-//Many,
of the lethal diseases of a few decades .ago have yielded

given facility regard¬
buying power. When

it becomes necessary to replace such a

climb.'

the

;

many

to

Brown

be Jhe
industry's - second best year, and its expected
growth" during 1956 will, for the first time in many
years,
nearly keep pace With the over-all economic

counter age-

to

diseases crowd each other in

Today we stand at the threshold
of
possible controls or cures for

Need for such revision

the dollar's

specifically

signed
old

goods critically short.

consumer

t

care

rush of scientific progress.

Garvin

Geo.

^However, d'egardless of the price increase in blends
and its inflationary effects,! 1956 consumption will still

diagnosis, innovations in patient
and powerful new drugs de¬

in

revision of depreciation

dollars originally invested in a

'

reports of important new discoveries
in medical science.
New advances,

again is rooted in growing inflation. Under the present
law business is allowed depreciation for only the number
less of the decline in

dramatically,

changed

has

possibilities for health and

the

long life are extraordinary in terms
of a few decades ago. Each day finds

Basically, however, the problem of heavy industry,
large amounts of money are required for equip¬

lies

society is clearly the chang¬

Medicine

where

ment,

"

,

picture in health and nutrition.

ing

.

allowances

of; 199.6' million < gallons.:;
the- reaspnsV for' this

of

early last Spring and

most

modern

in

more.

.

initiated
created a. tight money market for
personal credit on high priced items such as automobiles;
houses, etc. This credit curtailment undoubtedly channeled some dollars away from these high priced items
to lower priced goods since the costs for essentialsfood, rent, clothing—changed very little.
An inflated 1956 apparent consumption of 215 million
gallons or perhaps higher will give the industry a gain
of 8% over 1955 and comes closer than any other year
to the industry's all-time high of 231
million gallons
i, consumed in-1946, a year when cash was plentiful but

pharmaceutical industry is based

the

of

to earn a living have been
profoundly by it.
revolutionary factor in

pacity

meeting the increasing demands that
have been thrust upon it in recent years. For instance,
U. S. Steel, since 1945, has spent some $3 billion in
modernization and expansion and it intends to spend
job

rtanding

I

growth is probably due to the Federal
Government's curbing of inflation which was

medical and scientific advance. It is as unlimited
variety of diseases that may afflict man and
animal. The lives of countless millions and their ca¬

The erosion of profits during the

industry of this country has done an

'

,

When

One

is the

as

past 15 years of inflation has posed a problem for all
businesses — large and small — in replacing worn-out

steel

'

upon

depreciation there has been a heavy drain on profits.
Contrary to historical uses of profit, businessmen are
finding that a substantial portion of their profits have
to be devoted or reverted to replacement of existing

equipment and expanding to meet a

.

GEO. GARVIN BROWN

-

. y; President,

-

Schering Corporation

President,
future

The

require heavy investment

that

'

' '•

..

v

sumptidn

they wear out, steel producers are increasingly concerned
with the problem of inflation.
>
'
^
Because of the inadequate amounts recovered from

The

•

BROWN

C.

FRANCIS

fixed assets with the consequent heavy
capital expenditures to replace facilities as

plant and equipment.

/'

1957

^

long-lived

of

'

'

'

-■

.-Thursday, January 17,

..

.

re-appraised in view of the

e-utlay

;

.

Chronicle

Brown-Forman Distillers Corp. -.; *
looking at the distilled spirits industry and its
The insuring and inspecting of nuclear energy power
pparent... consumption picture -for 1956, one major
plants continues to occupy the attention of the property ; development that occurred during the-last month of the
and liability insurance companies in general and the
year h^s to be taken into consideration.
.. !
engineering staffs of boiler and machinery underwriters
This -1S the price increase in the
\, y
in particular. The year saw progress in setting up means
prided whiskey market. There is eatv:'-;?*&*' * *
whereby capacity for the extremely large limits sought
little doubt that these price increases > rk
for botn property and liability exposures may be made
wfll inflate sales figures for the' year v 1
available through pools participated in by many comullder review, not-through greater yl
panies.
However, prevention of accidents at nuclear
consumer purchases1,-but -through
power plants should be of even greater importance than::,
larger trade inventories. Sucih stock-)
the providing of indemnity for loss and it is. this that . t'pinng' as reflected in' '1956's! volume,
will call for engineering services of; the sort in- which
however,' will deflate the- normal
boiler and machinery insurance companies, have had
saies pattern//for 1957;
•
v
many years of specialized experience. -:'•
.•••';•
It isy estimated •/that normally,
For this branch
of the insurance business,■; 1957
without any pi ice increase, ebnsumppromises to be a year of continued opportunity 'foration of distilled spirits in 1936 would
serving industry's ever-growing needs :for the line's ''have approximated -10 million galIons;-'-This is-5%
Over 1955's con-,
protective services on boilers and power machinery.

substan¬

gram

nearly two decades.
Like other industries

,

specific knowledge needed in making effective inspections of the special machines and vessels used
in the processes.
7.-v. ._•/

48

Continued from page

V

Commercial and Financial?

having the

rf

fa

'

•

In addition to the tax increases
.several states this past year,

1957,
on

change

promised

little hope

will

Kentucky increased

production and importation tax
There is

no

doubt

that any

rate

be

consumption

iG

by 100%.

change downward in tax

Continued

on

page

52

Volume

185

Number 5604

.

.

The Commercial and

.

'

*
■

>

*

1

Ml

(

.

Chronicle

51

(247)

»

''Vl
t

'

'■

'

V

Ah

■t

A

new source

from
At Butte,

of

COPPEI

richest hill
"the

Montana—"the richest hill on earth"—

copper

1




open

brighter and longer than its long, productive past.

Meanwhile, Anaconda continues to apply its
than 60

new

copper sources,

but to meeting the

expanding needs of industry for more and better
products in the entire non-ferrous metal field.

project alone will be adding 65 million pounds of

Anaconda Aluminum
International

more

years' experience, not only to the develop¬

ment of

Today Berkeley Pit is yielding ever-increasing ore
tonnages. When fully developed in mid-1957.,- this

Andes

for many years to come.

gram

Experimental work at Berkeley Pit, begun in 1954,
assures an ore reserve of at least 100 million tons.

The

so

Berkeley Pit is just, one phase of Anaconda's pro¬
which assures for Butte a mining future even

pit mining operation is recovering prof¬
itable low-grade copper ore.
;

new

earth

annually to the world's supply and will

continue to do

copper's future has never looked better. One reason
is Anaconda's activity at Berkeley Pit, where a
I

on

Company

Smelting & Refining Company

Copper Mining Company

*'

PRODUCERS OF: Copper, tine, lead, aluminum,
silver, (/old, platinum, palladium, cadmium, selenium,

tellurium, uranium oxide, nodulized

Chile Copper Company

ore

Greene Cananea

super

Copper Company

manganese

and standard ferromanganese, treble-

phosphate, arsenic, bismuth, indium.

ON
The American Brass

Company

Anaconda Wire & Cable

Company

Company

MANUFACTURERS OF:

Copper and

aluminum electrical wires and cables: copper,

brass, bronze and other copper alloys in such form*
us

sheet, piale, tui/e, pipe, rod, wire, furgingt,

tinmpiniw, extrusions, flexible vuml
host

una

tubing.

\

'
•

|

!52

Federal tax. would nat¬
urally affect consumption favorably, primarily through
the channeling of consumer dollars away from illegal

States

1957

is necessary

Actually, the ex¬

basis.

sound

a

should be greater
at present rates is

penditure reduction
because

revenue

which

inflated
prosperity
safely be regarded as

by

distorted

cannot

permanent.
I
personally believe Federal ex¬
penditures can and should be reduced
by far more than $5 billion a year
any
tion.

dangerously
high, and it should be reduced in this
period of unprecedented prosperity.
To justify tax reduction we must de¬
velop a surplus sufficient to cover

Byrd

F.

debt reduction and

both
This

only through

be achieved

can

is

debt

Federal

The

Harry

federal func¬

other essential

or

defense

national

impairing

without

the tax cut.

substantial expendi¬
that we do

days it is imperative

these dangerous

In

military power, and (2)

(1) Strengthen our
fiscal stability.

our

tures,
basis

must

we

taxpayers.
The Federal

working to
family income and they like the foods which
require less time in the kitchen. They- want ease of
preparation as well as high quality.,
I believe the demand for processed foods will continue
to grow. All large food processors are working to develop
increasing number of housewives are

An

and

better

economical ways to

mere

budget

the

quality and saving of time for the
marketing and in her kitchen..

in her

eliminate nonessential

fiscal year con¬

for the coming

would

which

instability

financial

render

us

form of

powerless to defend ourselves or preserve our
government.

HARRY

BULLIS

A.

Chairman of the Board, General
We have just

reached

has

completed

Mills, Inc.

There

ing, in business capital outlay, and in employment.
has been
mentum

tum

a

na¬

gross

personal income and personal spend¬

tional product, in

constant increase in mo-,

through 1956. That momen¬

will carry

well into 1957.

The most

the

powerful factor has been
upward thrust which the econ¬

increased

construction

higher cost of capital and the
of
increasing costs against
may cause some

outlays.
will

on

customers.

own

As

as

to

On

the

our

rapidly growing economy, which can
easily get out of hand if it continues

coun¬

to

1957 with business activity at a high level,

try

enters

the

demand

credit

for

showing no signs

threatening to move even higher and most
signs pointing to a continuation - of the boom.: There
are, of course, good reasons for believing that the first
quarter, and perhaps the first half of 1957 cannot help
being a period of high .business activity, and that the
responsible for

also

men

would

be
we

year,

failed to build more than

million new houses in this coun¬

try,

our pres¬

because I believe in that field
periodic stock-taking is neces¬

also

running at an

are

with all of these favorable

even

this observer

a

signs, there

areas

are

number of questions for which satis¬

of

wisdom

a

on

the

one

our

degree

of

caution

in

projecting

our

than three or four months ahead.

among

v

-

Middle
Unless

the
al¬

in

ready

income

personal

provided

appears to be

income

for

in

will

union

improving.

be

larger in

contracts.

1957

Farm

The

the price rises are not

likely to get out of hand. It
profits, because increased

will be more difficult to earn

costs cannot
tition will

readily be passed on to
be exceedingly keen.

We enter 1957 in
tne outlook on

disregard
time
tion.

the

a

state of

the domestic

international

before the Suez Canal
Even

tlements of

if good
progress

Compe¬

consumers.

Eastern.

ginning of construction of
to

of

Western Europe.

economic

We shall

scene

is excellent,

situation.
can

It

be put

we

will

cannot

be

back into

some

opera¬

is made in working out set¬




pany

is

is

limited

the

first

gas

from Mexico

in England and
have to supply the oil thev

monetary

system.

not

term—is the

today's high interest rates. That

they
and
and

should

reason

make
more

be

for

allpwed to rise without interference,

further

difficult

borrowing
is

to

the

increasingly

everlasting

expensive

credit

of

the

late

approximately 20%, but of V*r'
the location o

or

the

availaW
States an
which were previously to
from the company's lines t

new

line which makes

gas reserves in

Mexico
Orville S. Carpenter

distant

provide

today, and the insatiable demand

of credit—long-term and short-

until

new

ticular importance is

bank credit for the shorter-term needs of business and

for both of these types

felt

pr?"
earnings wui
in 1957. I*11*

impact of this new

line will increaseT^na.
Eastern's system capacity by 250,000,000 cubic feet of natural gas per day

normally financed out of savings, and the

also swollen

be

for resai

States.

the company's

tially, the

long-term credit available for these projects
by the rate of savings of the country. With

and increasing demand for this
credit, one wonders whether the money being
saved is sufficient to supply the demand.
Commercial
is

full

gram on

of

trade

the- United

in

present enormous

kind

com¬

pipel1?.

Texas
Eastern wu
major importer o

completed.

The

are

When this

facilities.

natural

question has to do with the supply of credit
in relation to the demand.
Capital projects requiring
long-term investment, such as new plant construction,
roads, schools, public buildings, dams, and residential
amount of

southwestwara

pipeline

expansion of other

become

inevitably have an im¬
affairs in this country, they will certainly bear

structures

a new

the Mexican border and the

part of the world will

dislocations

wi?i placealS° th5 doUar exchange our its purchase. This
nind an added burden on for

will

on

Corp.

1956 was one of great progress for Texas
Highlighting the year's activities was the be¬

Another

the

high prosperity and while

problems in the Middle East, we will feel the

repercussions

pact

CARPENTER

year

watching.

-

Employment will be high because more people will be
required for the expanded industrial plants and for the
services needed
by the constantly growing population.
The trend of prices will be
higher rather than lower,
but

that

S.

ORVILLE

President, Texas Eastern Transmission

resulting from the Suez Canal
situation
is
remedied far
more

as

Bu!li»

A.

of a rela¬

have the courage,
patience, and prudence to uphold a stiff credit policy, we
can have a relatively stable dollar as well.

these relates to the possible ef¬

are

Total

Harry

be assured

tively good year in 1957 and that if we

East

this

over-built,

which have actually been

As for business, I think we can

domestic economy of the troubles in Europe

result of increases in wage rates, some of which

will

government

a

one

,

quickly than seems likely, these adverse effects, not
only on the economies of the countries of the Middle
East and Europe, but on our own as well, could be far

upward trend.

that it
given

who do not feel
calamity if, in

a

reaching and serious.
They could evolve dollar ex¬
change, trade activity, business prosperity, and even re¬
lations between governments.
Since economic troubles

continue its

^

of those few mort¬

one

sary
and makes for sound growth.
annual rate of close" to $38'billion *■_ The fact is that we haVe been build¬
Frederick P. Champ
ing too many houses and that not
and
are
expected to increase slightly in 1957.
Gov¬
only has this building boom contrib¬
ernment outlays will undoubtedly be higher, and con¬
uted substantially to the unusual,demand upon the sup¬
sumer
buying, particularly in the field of automobiles,
ply of credit, but it has developed soft spots in certai
is also expected to move up again.w
;

the

crisis.

probably increase tnd spending

am

gage

prosperity will permit of nothing else. At
moment capital expenditures by industrial concerns

and

profits

help of easy credit.

I

of

state

ent

under forced draft with

operate

the

of subsiding,

rates

money

the current

I am one of those who be¬
lieve that adjustments of this kind
are wholesome and are needed
in a
squeeze.

the continu¬

domestic front,

an

inflationary and, I think, unjustified, despite

of the boom in the United States.

ance

Year, I see no immediate basis

enter the New

we

easing in the money market unless Federal fiscal
authorities decide to resort to measures which would be

for

conditions in Hun¬

overconfident

be

Burgin

Rodgers

C.

Number

squeeze

Valley Banking Company,
Logan, Utah

Cache

eco¬

today.
It is because
the repercussions
business
economy
of

CHAMP

P.

FREDERICK

the Middle East, Europe, and
England, that we cannot afford to

fects

costs,

-';y-

President,

gary,

enthusiasm more

deferment of capital

local

our

economic

everything possible consistent with sound

practices, to satisfy the financial requirements of their

the
the

escape

happenings and

the

However, defense spending

by state and

cannot

our

confident that the banks across the nation will

feel

I

do

factory answers are difficult to find, and which suggest

penditures extend well into the fu¬
ture. It is possible that a combina¬
of

faced

are

we

But

has received from the huge ex¬
penditures by business for new plant
and equipment. Plans for capital ex¬

has

retrospect

reaching in their

far

we

to

omy

tion

less

and

during this

might well get beyond control..

economy

less complex

have been

sheer momentum of the forces

when economic activity

a year

highest peak in history—in

the

to

least,

Reserve System,

potential of the high level of

which the inflationary

years

-

feeling that the Board of

the

Federal

will continue to exercise
existing wise policy of credit restraint, without

their

Even dur¬

in

seem,

well prevail until the supply of
lending is in better balance with

share

of the

nomic effects than those with which

home and abroad. Unless we

to

World

at

dollar.

closer

the early

the

Western

collections, and the debt itself is an important factor in
inflation which has now resumed its devaluation OMhe is doing too much both at
retrench drastically in every
nonessential function and program,: there can be no jus¬
tification for tax reduction and we shall continue to edge

than

here,

since

hostilities in Korea,
problems
which
confronted
ing

is little reason to propose new ones.
the .military services would both

Government

case

follow-ing World War II,

our

Federal

prevailing

the

been

defense and reduce costs.
We have piled up the Federal debt'txTr point where
the interest on.it is costing 10% of our total Federal tax

The

those

to

1

period of higher interest rates,

to political and eco¬
this country, in addition

of

for

bankers

Governors

consideration
outside

i

applications for credit.

Many

attempting to give an opinion as to the business
outlook for 1957, it seems to me that one is obliged to
conditions

i

I

might

funds

available

BURGIN

are

condition

This

In

nomic

condition. Such cir¬

inevitably accompanied
by higher
interest rates. Anticipating that there will be no reduc¬
tion in the demand for credit in 1957. as compared with
1956, it is highly improbable that the borrower will
enjoy a lower interest rate during the ensuing year.

cumstances

President, The New England Trust Co., Boston, Mass.

serious

v

producing a "tight money" money

housewife both

the

more

.

Many areas reported in 1956 a presence of credit de¬
mand in excess of available funds for lending, thereby

with her wants.

RODGERS

C.

.

strengthen

credit needs.

progress

give-away programs.
• •
.
~
.
Economic foreign aid should be at least reduced if not
eliminated. In these days of unprecedented prosperity,
nondefense domestic-civilian programs should be cut to

in

carefully considered. In numerous instances such
planning will materialize into applications for legitimate

housewife wants new rfeas in foods and the

strengthen

for

very

opportunity in the food industry for imagina¬
both in processing and distributing. The
food industry

There is

a

important part of this planning, credit require¬
operating and capital expenditures must be

As an

compensating factors in less waste,

cost, there are

better

operations to conform with

of the economy, in addition
projection of the extent of its duration.

the

ments

they will be more nutritious, more palatable, and more
convenient to use in the home. While processing adds to

expenditures for nondefense, domestic-civilian programs,
and no reduction in foreign aid after ten years of these

efficiency

1957.

to

.

excep¬

well into, if not throughout, the year
Accepting this as a correct conclusion, business
continue

large and small, must gear
continuation of the speed

foods so'

prepare

will, with possible minor

1956 economy

the

tions.

to the

add

of opinion appears to be that the tempo

The consensus

of

CAMPBELL

M.

L.

Second National Bank, Ashland, Ky.

President

their diets.

still upgrading

are

templates the highest Federal expenditure level in all
our
peacetime history. - including the highest Federal

More

..

.

is excellent. Con¬
sumers are still spending
nearly 25% of their incomes
for food. In 1955 the total was about $67 billion; in 1956,
about $69-70 billion; and the trend is still upward. Popu- ■>?
lation growth annually is adding nearly three million
more mouths to feed and our growing children are eat¬
ing more each year. Furthermore, the American people

give

the bone, and there

perhaps to

.

expendi¬
reduce the astronomical public debt, and on the
of'a balanced budget give relief to hard-pressed
this

do

To

areas

the food industry

will do its best to keep up

things:

two

..

outlook for

The

tive

reduction.

ture

and

higher and higher wage costs
materials, higher inventories and
be in evidence soon, lower profits for busi¬

spending have -come
higher costs for raw

attitude

globe, especially

the

nation.

Administra¬

general tax rate reduction

justify consideration of any
on

of

expenditures by a minimum

of Federal

Reduction

^5 billion under the level proposed by the
tion for the new fiscal year beginning July 1

.

in Europe, will affect us ad- : ness. How far can we stretch our economy without
versely. The months ahead will bring both hope and
something letting go, if the stretching continues here
disappointment. One thing to the advantage of the iree
or
getting ourselves perilously vulnerable to the same
world is that the Hungarian episode has revealed to tne
result if a squall should come up in Western Europe?
"neutralist nations*' the true character of Russian domi- <

of

Virginia

V. S. Senator from

course at this

the game would simply invite disaster.
-Accompanying this great surge of borrowing

stage of

of world economy tna

American

BYRD

HARRY F.

HON.

.

.

;;

is so much a part

industry cannot take <a' complacent
about world affairs. Economic setbacks in other

the legalized industry.

of liquor to

sources

products.

Our country-

particularly the SI0.50

Any other

authorities.

Reserve

Federal

imports o

to curtail its

find it necessary

may

United

50

Continued jrom page
rates,

,

Thursday, January 17,

...

(248)

Europe

to

Financial Chronicle

Commercial and

The

contracts have

also been

pliers for additional
of the

new

the United

sources

of

supply.

negotiated with

reserves

Severa

domestic sup¬

in fields along

the

route

line.

Supplementing

the

favorable

prospect

Continued

of
on

increased
page 5

■

Volume 185

: Number 5604

.

.

.

The Commercial and Financial
Chronicle

(249)

I

I

4

Since 1950, Pure
of

a

Oil has added the

completely integrated oil company to

Northern segment
In

just six

interests in

years,

the

fact,

in Colorado,
complete refinery, and

added. And through

a

enced

important production

nine terminals have been

the acijiii-

in

a

key

great surge

growth brings greater "efficiency and

area

the conversion of the Hickok

of growt h and

outlets

now serve,an

the ISortli.

-

^

transportation facilities,

is being experi¬
.

.

.

--

%\

>

EAST WACKER

JSoiv,

DRIVE

more

•

than

These

are

the

sive business
a

.

.

modern marketing out-

signs of a healthy, vigorous and
.

the planning of

forward-looking oil

CHICAGO 1,

ever

more

lets, continued product research and development,

TI1E PURE OIL COMPANY Producers • Refiners*
35

in-

progress

expanded production, increased refinery capacity, added

and Benzoco, and
Oil Corporation, moie than

creasing number of motorists in

of PURE's operations. Matter of

throughout the entire Pure Oil operating area

Barber Company

2,300 additional PURE station




economy

of its operations.

eight pipe lines, a

sition of the W. H.

This remarkable

equivalent

...

company.

Transporters* Marketers
ILLINOIS

Be

sure

with PURE

progres-

53

(250)

Continued

resulting from the Mexican expansion program,
1957 prospects are further enhanced by
the diversification program which will see the entry of

the company

into

major new business, the large scale

a

pipeline transportation of petroleum products. Hearings
are now in progress before the Federal Power Commis¬
sion concerning the reconversion program.
The com¬

expects

pany

a

President, The Detroit Edison Company

favorable decision

world, the economic outlook for, 1957 appears
bright. Automobile manufacturers have spent very large
sums
in order to provide distinctively new models and
of

the

the

one

national

product,
economic

at

all-time

an

high,

wide¬

but with

-

L.

There

beginning to

not alone in this for other

move

last

half

characterized
ditions
from

up.

,

the

of

tight

by

the

as

was

year

money

demands

con¬

exceeded

savings.

Banks and

insurance companies had to sell gov¬
ernment

their

bond

increase

to

reserves

loanable

lower

The

funds.

the

seems

country

mands.

credit

for

government, business, and con¬

sumers

ber

of

prices

bond

cost

of

rate

and
The

money.

num¬

a

revisions in the

upward

discount

i

and

took

other

:b' v. 1

^

to

ers.

International developments

discourage would-be borrowag¬

gravated inflationary trends.
with

starts

1957

funds.

slackening

no

outlook

The

is

in

increases in

for

the

definite

this situation

that

all

the

economic

ing {inflation in costs rather than increases in real pro¬
duction or purchasing power.
The cost-profit squeeze
will continue to push industry to invest in more efficient
equipment and machinery. International stresses will
certainly not allow any significant drop in Federal ex¬
penditures.
Capacity operation of the economy may
bring danger of inflationary pressures, but it means high
level of employment and high"consumer"incomes. With
v/ard

will

incomes

grading in

continue

patterns.

consumer

consumer

use

will

consumers

credit freely.

casing of inflationary

pressures

vestments

their

up-

process

In this

they

Even if there is

some

few

of

the

last

the

as

high capital in¬

years come into production,
manufacturers will depend on high consumer purchases,
nnd the accompanying use of credit to clear the market.

For
the
our

these
of

use

field

Tight
well

reasons

credit,

to

expansion

interest

loan

rates

companies

E.

foresee

somewhat,
be

is

market

a

very

during 1957.

looking

and

new

buying

models,
and

cars

a

styling and engineer¬
more people will be

the

This

will

be

a

companies;; throughout-, the
country, it will be several years before: power from this
new source will become a reality. In Michigan we expect

which

Because

aiming for

a

centrate

all

its

domestic

Lubstantial

in

con¬

in

that

cars

city.

and

E.

Churchill

In

addition

to

trucks.

While this program is on a "lean and
hard" operating
basis to bring costs back in line with
expected sales

volumes, it also represents
pany

in

its

market

will

a

new

coverage.

emphasize

the

approach for the

Product
low

and

and

com¬

priced

styling

There
the

is

every

cars

confidence

on

that

of

figures

its objectives in




the

for

of

.

the

that

products

:packaging

earn

will

growth)
forms

business.

is

and

convenience

for

non-,

we

from

non-defense

of

corporation

it.

in

the

While

bulk

to

(and a good part of the
go to the more traditional

and

glass packages, these newer

continue

metal,

sdld

are

business

paper

packages will play
perous

key role in making 1957 the pros¬

a

packaging in¬

dustry.

fluctuate,

but

fiscal

of

and

non-defense

25%

accounted

profits. In

the

and

22%

and

of

was

"newer"
that

are

61%

•

in

our pattern of living without motion picture en¬
tertainment., cither in the theatre or through television

Clark

in

for 46%

which

untraditional

we

to

motion picture

plate
F.

James

ag¬

sales

greater

responsible

areas

of

are

uct of

active—the

now

ACF—include:

home.

the

We

benefit from its

profits.
nuclear

.

contribute

than $400 billion

more

theatre

marily

valves and

films for television.". The

The company has
automotive fuel systems, railroad

our

fourth

and

fifth orders for

test

and- research

Clements
Avion

of

its

division

Sidewinder
was

at

missile

responsible

revealed

that

our

of

and control system.

.

of

small

industry and to additions to our
original-equipment customers. The prospects for
gasoline engines such as those found 'in power
and

outboard

has

the fuel injection field.
The above are
merely

Carter

Carburetor

motors,

division

seven

product

prospects.

divisions

is

is

particularly

preparing

its

bright.

entry

into

business,

».

bred

edy
The

love

report

The

others

similarly

of

our

encouraging

attendance

after

and

have

for

and

r

former, our;

some

years

of

of

of

an

TV,

shows

steady

avid

im¬

and

drama, mystery,

in-

com¬

documentary

„motion
continue

presentation.
picture, can,-does and
to supply that want,
Harry

sensitive to

changes in the mood and
public, backing the cour¬
age of its experience with great resources
talent and physical facilities.

Cohn

taste of the

Our

Our

capital,

country is hardworking and happily prosperous.
are fully employed.
They demand for re¬

laxation

with

of

people

economic

examples.

.

attraction

newer

Americans

..

look for the automotive

in

convincing evidence
provement.

will

In automotive fuel systems, we
expect sales to increase
least 10% over 1956 due both to the
improved out¬

list

the

re¬

for'^ development

year.

diminishing demand in the face of

receipt

actors, thereby reaffirming our leadership in that field.
In
missiles, recent declassification' by the Navy of

Sidewinder's guidance

older

equipment-leasing and

manufacturing and defense products. '
In nuclear energy, we have just announced

a

.Columbia's participation rests pri¬

electronics,

missiles
and -components,
high
fittings, and airframe components.
long been engaged ...in the fields of

and

to

national prod¬

gross

pressure

cf

Corporation

industry is part and parcel of the
economy-of America. It would be difficult to contem¬
The

of

non-rail-*;

business

a

COHN

business,

for

year,

non-defense

the

be for

to

President, Columbia Pictures

first sixi months

the

fiscal

current

expect it

HARRY

our

that

we

year

that ended April 30,
sales were in non-

year

mowers

programs and the management to meet

1957.

mand

~\

has now

where

profits

our

•

products, the

admirably suited to the modern de¬
and good looks.
The aerosol is
also an excellent example of a container which
has
ritself helped to create a tremendous increase in demand
developed

My prediction
growth ' of the most

equipment. Our

t

'examples, including many from the old and once un-,
tglaiTjOrous business of making metal cans. The aerosol
'can is probably one of the most unusual containers ever

best years. '

business.
exclusively

program

point

and

'

our

are

the road.

the

the

•

V

than in recent years,

more

even

ample is plastics, where new materials and new methods
have produced a host of packages yvith uniquely attrac¬
tive and useful" qualities.
But there are many other

indicate

promotion

medium

fields where traditionally
Studebaker-Packard has had
its greatest acceptance
among the non-mass buyers who
want advanced
engineering in cars that in

distinctive from the other

•,

<•

probably

year,

energy,
Harold

cost

chasers of the company's

reached

railroad

The

automotive

plants

.•

-

' i-

Industries'

continued

almost

railroad

of

roughly half

areas

savings resulting from this move, new
duality, craftsmanship and manufacturing
efficiency have been possible which will benefit pur¬

programs

v-y

single industrial area.

part

relied

diversification

gregated

production of Packard
Clippers in South Bend Dec. 19, the

completed its plan to

sales

on

volume

first

manufacturing

v

diversified, it is impossible to relate

a

expected

on

once

road

the firm is
break-even point in the
year,

future and profitable
operating
J.ates by the end of 1957.

company

based

of

near

With

,:,c

..

CLARK

F.

ACF

of

one

are

our

reduction and sales development
of
this program
on
target
new

we

and

phases

the

be

prospects to

railroad

its new program to
strengthen its
products in the market place. With

entering

should

1957

1956, 25%

on

cost

"
JAMES

the

Stude¬

forward

move

This

fthis growth is likely to be at an exceptionally higher
rate in the newer fields of packaging. An obvious ex¬

building and structure will be completed by the

end of 1957.

,

growth- in our own; industry will be substantially»
greater -than\ the growth in the economy as a -whole,
•and possibly twice as great. ■
.
■
.r
"of

Plant

reactor

.

-

the construction of the Enrico Fermi Atomic
so
that installation of a large part of the

to carry on

Power

packages being produced. This trend will certainly
Consequently, we expect that the rate

continue in 1957.

*

general pattern of greater profit¬
ability from the "newer" items. In

favorable

very

within
baker-Packard
will

Gross National

increase

of

.

a

year.

do his part by continuing

shipped and sold, and has led to a tre¬
in the number, quality and variety

are

mendous

electric power

by the

The

over-all sales volume should be close
to 6,500,000 cars for the

atmosphere

.

.

We

rising

important part in

an

the

in

products

,

operating economies;
'
*
V
activity in atomic power develop-

remunerative

healthy condition with

With major

ing advances for the

our

While there is great
ment

is

indication that the automotive indus¬

every

•

highly efficient thermal generating equipment and

other

to

CHURCHILL

play

neighborhood of $435 billion, repre-j
senting an increase in the physical volume of production
of;2.5%-3%. In our own field of packaging, we expect
to ^show
d greater increase than this.
The business
of packaging benefits not only from growth in the quan¬
tity of goods produced in the United States but also
(and perhaps more importantly) it benefits from one;

The year.1957y

be somewhat, offset by

These increased costs will
new

but

able

modern¬

increase jn government activity.

specific tdrms, we expect this year a

In

Product

.

growth

good promise

in

will

be

nation's highway system will

the consumer will
spend his rising income.

to

designed to

program

Finally,

industry here in Michigan/and
Detroit Edison's annual rate of

slackening in this trend.

no

will

of being approximately 8% higher
than 1956 in both gross revenue and net income. 1
.of the key characteristics of our modern, high standard
;v
On the minus side, our wage and fuel-Costs are edging > of
living: This is the enormous desire and preference
upward. During 1956, coal costs increased 47 cents per
for goods which are better, more attractive and more
ton and freight rates went
up 15 cents
per ton.
We "convenient to use than the goods we used to buy. In¬
anticipate further increases in 1957 of 25 cents per ton
dustry's rcontinuiiig attempt to satisfy this desire has
for coal and 10 cents per ton for freight.
■
brought a rising emphasis dm the packages in which its
holds

President, Studebaker-Packard Corporation
There

*•

i *
indicate substantial

to

new

begin to

Lucius D. Clay

v

growth for the last 25 years has been 8%. and

revenue

expansion.

HAROLD

power

throughout the country.

our

try should be in

state

in

particularly

more

combine

electric

the

for

be close at hand.

may

spending

ize the

heating through the use of .heat'pumps will

space

practical

Alb of' these

plants and equipment
10% during the year.

for

higher, both for defense and for do¬
mestic purposes.
The new Federal-

conditioning

President, ACF Industries, Inc.

raise

small

funds for sound

Lecure

forward

and

be

loans.

will

money

established

look

we

consumer

of small

tric

in¬

Government

industry and-it

Air

customers.

that

indicate

by more than

ing

Better lighting, more, appliances and

domestic

by

new

business

dustry intends to increase its spend¬

other factors are contributing .'to increased power

many

of

surveys

plans

investment

continue for the

will

Recent

creating" the

toward-

record.

and
be less- spectacular, the

increase is larger than for

next several years.

we

for

demand

landmarks, but with probably half the increases reflect¬

increased

tribute

electricity -in homes

of

use

establishments may

commercial

percentage
seems

\-

increased

the

While

re¬

meas¬

ures

•

'

already is an important factor,'and the time when elec¬

the

Federal Reserve Board made

W. Caspersen

-

companies, throughout
similar , increases in de¬
"*^'• •

consumption

depressed

and that this
prosperity-will vbe well distributed
throughout the nation and most of
pur
industrial- ' system. -: Industry,
government and "the population at
large cam all be. expected to con¬

;

power

experiencing

are

liquidity position of the institutional
increased

'

*

ning

lenders,

O.

i

activity in the United States

business

position, are continually plan¬
and
building
new
facilities
which require large blocks of power.
to be no limit to such advances;
We are

Cisicr

All signs point to a record level

packaging, industry.
of

tive

Walker

After sev¬
and retail
price stability, these price levels are
The

Board, Continental Can Company, Inc.

expect 1957 to be another prosperous year, both
for the United States economy as a whole and for the

Our large- power'customers,
in order to improve their competi¬

over the inflationary trend.
eral years of wholesale

concern

now

-

LUCIUS D. CLAY

energy.

employment and most other

income,

indexes

use

b-

..

We

to expand, ;•
the most definite trends .is
of more and. more electric

of

the

passed into economic history with gross national

spread

V
Chairman of the

As industries'continue

CASPERSEN

W.

President, Beneficial Finance Co.
1956

"that,^automobile sales

plant operations will con¬

naturally is reflected throughout the
entire economy of: the -State.

pany's future earnings.
O.

stands at

throughout 1957.
Although Michigan .has a wide di¬
versity of industries, the operating
level
of
the
aiitomobile
industry

carrier will be profit¬
its inception, and will contribute to the com¬

$16 million and

Our backlog of orders rose
$246 million. , /
; -

year.

tinue at high levels

Little Big Inch as a common

able from

auto

of

reception

belief

the

and

petroleum products by mid-summer of
It is confidently anticipated that the operation of

1957.
the

these new
<This leads

has been enthusiastic

to

of

carrier

public

cars

the issue early in

on

the automobile center

Here in Southeastern Michigan,

1957, and anticipates initiating activity as a major com¬
mon

ACF earnings were $6.08 per share
million. It appears as of this date that
earnings in fiscal 1957'will *be approximately $7 per
share Despite the steel strike and the effect of the drop
in 1956-model automobile production, earnings for the
first half of the current fiscal year were approximately
the same as for the corresponding period in the previous
«ales of $245

on

Texas Eastern's

Thursday, January 17, 1957

...

1956,

fiscal

In

CISLER

L.

WALKER

from page 52

revenues

•

Chronicle

Commercial and Financial

The

54

the

entertainment

and

social

imagination

product

we

supply.

sound

judgment

will

In that

producers

climate, motion picture

and

prosper

in

1957.

Continued

on

page

56

Number 5604

Volume 185

.

.

.

The Commercial

and Financial Chronicle

(251)

Andrew N. Overby to

.

Join First Boston
Boston

First

The

Npw .Automation Shares.

fir^ASHIN?TA°.N' D* Cof Automation
iirm
1

Corporation,

name

opment

Securities ;Co.,

—

;

The

Devcl-

K. R. Heyman Opens

'VERONA, N. J.
'

tr

■

7e34 Heyman

Inc.,

—

With Lakewood Sees.

.

Kenneth

ls conducting a secunt.es

Fifteenth

Street, N.'W. has been buslness Horn offices at 38 HowBroadway, New York City,
changed
to
Automation«; Shares ard Street under the firm name
that Andrew N.
has announced
Overby, who has resigned as As¬ Management Corporation.
of K. R. Heyman & Co.
100

...

sistant

Secre-

of

tary

.

-

.

..

JL W. Alcorn
BROKEN

LAKEWOOD,
-

Ohio

—

Joyce

J.

—-

w

Perry more is now connected with

-

Lakewood

Securities

Corporation,

14714 Detroit Avenue.

BOW, Okla.
conducting

.

eron

Street.

„

States

United

Executive

Di¬

of

the

rector

International
for

Bank

Re¬

Something

construction
Develop¬

and

(World
Bank),
will

new

ment

under the

-join the Cor¬
poration at its

principal
/York

New
/tiiurew

Mar.

on

1,1957. He will
be

moon

of¬

in

fice

with

concerned

i\.

uverby

'
•
aspects

all

end

stars!

of

the investment company's business
'with particular emphasis on inter¬
national and monetary affairs.
Mr.

Overby has been Assistant
of the Treasury since

Secretary

1952,-when he also
United

States

was

appointed
Director

Executive

of the International Bank, for Re-,

construction and Development and
member of the National Security

a

.

.

,

Council Planning Board:

Prior to

beginning in July, 1947,. he
served as United States Executive
that,

Director of the International Mon¬

etary Fund and in February, 1949,
became Deputy Managing Director
of the Fund.' '
'
*
'
;/•
,

.

.

Following his return to civilian
life in 1946, with the rank of Lieu¬
tenant-Colonel

in

Overbv .rejoined

F?(ieral

New

York

Vice-President

sistant
itr\1946
the

of

Bank

serve

the. ArmyMr.
the

sistant

to

become

the

to

Treasury.

later
from

Special-As¬

Secretary

In

As¬

and
leave

granted

was

bank

Re¬

as

of

the

post he also
s,Qr.V$cb as',tfre,.Secretary's Alter¬
nate

States

ei

n an

Overby

National- Advisory

International Monetary

on

Fi

,

that

the

'on-

Council
and

-

a

has

1

Problems.

-

also

Executive

Mr.

United

been

Director

the

of

International Finance Corporation.
Mr. Overby began his career in

V

banking

Trust

in

with

1930

Company;

the

leaving'

Irving

join

to

the Federal Reserve Bank of New

York in

1942.

During the

course

of his service

with

the Treasury, Mr.<
responsibilities have
at
times

included

nancial

and

Oyorby's

monetarv

Procter &

various

international

its

national security affairs, national
banking supervision, the U. S. Sav¬
ings Bonds program, and assist¬
ance
on
Treasury debt manage¬
ment problems and relations with

the

Federal

Reserve

has: represented

national

many

Svstem.

the
and

Treasury

for the

He

meetings since 1946

family of products

Gamble's al¬

recently been added to Procter &
ready long list of successful brands.

of the Poards of Governors of the

International

Bank'

an-i

What

the

of

International Monetary Fund.

is their

we

...

important reason

an

Company's year-in, year-out growth and progress

products you see spotlighted above have

The

at

international

conferences, and has attended all
of the annual

Gamble continues to broaden and diversify

fi¬

activities,

would like you to notice

developed through experience in some of the most
highly competitive businesses in America.
In Procter &

particularly

other

new

oped with

variety.

Gamble's research laboratories,

products
a

are

constantly being devel¬

view to extending, diversifying and

strengthening the Company's product family even
.

Hemphill,* Noyes Co.
Malcolm

named

de

Sieyes has been

general

a

Hemphill, Noyes & Co., 15 Broad
Street, New York City, members
of

principal securities

it

has

been

Mr.

announced.

de

is

currently manager of

the research
department.
Mr.

de

Sieyes,

a

graduate

of

University
Business

Graduate

School

Crystal

Research

of

joined

Administration,

a

automatic dish¬

baking mixes.

more—and to

giving greater service than

This
well

as

continuing search for
the

constant

new

products—as

a

Company's long success in the manufacture

Gamble's steady,

healthy growth and

Peanut

natural outgrowth of Procter

the

& Gamble's inter¬

over

operations; all of them

may

call for the marketing

and merchandising skills

reason

for Procter &
progress

in the face of the keenest kind of

Company become

production of shortenings and edible
logically into the Company's

established manufacturing

the years,

major

competition/This growth, in turn, has helped the
teed

oils. All of them fit

to

improvement of existing

brands—has been

and detergents. Others—such as Big Top
Butter and the Duncan Hines mixes—are

ever

the nation's households.

additions stem naturally from

of soaps

a

shortening,

brand of peanut butter and the newly-

Some of these

the

est in

Darthmouth College and Harvard

a

acquired Duncan Hines line of

exchanges,

Sieyes joined Hemphill, Noyes in
1946 and

washers,

in

partner

a

household cleanser, a detergent for

Admits J. M* De Sieyes
J.

They include a toothpaste,

a

Employment,

leader in providing Guaran¬
Pension and Profit-Sharing

Plans and other benefits by

which

our

employees

share directly in the Company's continuing

success.

Laboratories,

Hartford, Conn., in 1945 following
service

with

the

French

LT. S. Air
Force, and

Army,

the Office of

Strategic Services.
He

is

a

member

of

the

New

"iork Society of Security Analysts.




—

,

a

James

secun

/
11 1S conauc"nS a secur..
tics business from offices on Cans*.
.

the
and'

,Treasury

Opens

(Special to The Financial Chronicle)

R.

,

£2

Procter & Gamble

Chronicle

Commercial and Financial

The

56

...

Thursday, January 17, 1957

(252)

Corporation

President, Chrysler

1956 will be ranked as the automobile
industry's third biggest year, the retail market for new
cars in 1957 should be bigger than 1956 by a substantial
The

year

whole

the

and

margin,

future presents a
market for

long-range

presented
last

year

in the closing months of
put increased vigor in the
1956 market. As

demand,

example of this surge in

an

higher.

tnis year to be
lo meet the

final months of the

next

Chrysler Corporation our dealers
sent us orders for more than 400,000

^p^edf J^
in the future,

and

y«. ai

fnr

,,orv,onjc

p

in

cars

introduction

Oct.

on

Colbert

L.

period.
In

**'

.

•

demand

this

to

response

our

reasons

a

V In

of

two

eight

the

one

very

in the longer-range

future.
from

1947

years

1955, there have
in the United

to

middle income

the

added to

been

In the last two years, industrial expansion in Ala¬
has reached a new peak.
The improvements are
state-wide and the character of products manufactured
are
very
diversified.
Some of the
factors responsible for this growth
are
a-very " fine river
system, the
excellent Port of Mobile which con¬

group

families will be
1

proportion

large

very

new car

of

in

families

John

5% in 1948.

This trend toward

those

with

scale

'

are

the

Power

Alabama

A

Company.

huge

steam

with less than

of

represent

advancing
retail

for

J To return to the automobile industry's prospects for
new year,
one of the best reasons for anticipating
bigger market next year than 1956 comes from our
own Chrysler Corporation dealers wno have been telling
us that there is a big difference
between this and any

omy

the

Company,

other new-model introduction

2\k billion tons of coal annually.

previous

dealer

there

years

showrooms

period they can remember.
heavy attendance in

opening

on

tapered off to normal in

a

for coal has greatly

been

has

day,

week

or

The

it

has always
ten days. Last year,
but

number

We

credit

,

pletely redesigned
and lower lines,
aerodynamic

this
cars
new

stability

continuing interest td our com¬
with their "Flight Sweep" styling
Torsion-Aire suspension system,
added

and

structural

and

view

the

of

enthusiasm

taking into account the

for

the

1957

evidences of

many

and

second

biggest

cars were

year

This

The outlook for

now

is the way

given

would

on

i950,

put it above

is

our

the

the books, when 6.3 million

million

cars

retailed.

were

market for 1957 looks to

us

right

T. is

now---

Whit*
HI
"

(1) The

national

mem

is

record
been

.at

an

levels

all-time
and

running, at

high.

prosperous

than

at

Since

gives
are

schools

(2>

Over

million

the

people

past

have

at

years
new

approximately
and

cars;

a

new

(3)

cars

1955

and

strong and steady demand
prices

have

held

1956

for

remarkable

used

firm.

there
cars,

To

has

and
this

us

hnvf>r«

least

two

of

every

three

in
10^*
ui
v
-4.
i
Duyers in 19o5 will not u
be limited
„




,

of
.

the

1

.

11

eon tvc

COLLINS

"-v'r

'

prices

borrowing

of tax

is in prospect

generally faces larger
operating costs and the

Also, business

higher

i>i

i->

W

:

1 (IST

•

V

'

with the expected business pattern, however, the pro-.

.spe.ctive slowing down of inventory, accumulation eom-

a. tapering off in business investment sp.ending'cofld relieve.some of the pressures in the financial

bined with

'

production

days of World
become •. increasingly

markets as the year 'moves on. , v
~
-

not

weapons.

that

mean

the

in the aircraft
of

success.

industry,

Just

better

as

in

is

are

for

management,
a

rewarded with

Inferior

aircraft

the

fleeted
world

U.
of

national

S.

almost

continuous

air¬

pressures

keeping

a

on

costs

tight rein

upon

gains in productivity for the

economy as a

ness

boom

Whitley C. Collins

sibility

craft and

whole.

may

cannot

be approaching
be

ruled

out

a

that

Also, the pos¬
unpredictable - events

crest.-

ciau ana equipment to back up the
equipment to oacK up tne

"cvv*Ldl

,

national

defense

establishment

still

is
to

Moreover, credit restraint should be exercised with
caution, as credit is now tighter than it has been for a
good many years and there are some who feel the busi-

inter¬
of

and

frequently

only if the current pattern of wage increases
abandoned and future advances related more closely

industry have re- "
policy in a
Production

pressures

which

vented

national

tension.

wi,

persisting, there is still need
credit expansion.. How¬
ever, credit policy
alone cannot be expected to cope
successfully with the wage-cost spiral.* Continued ero¬
sion in the purchasing power of the dollar can be pre¬

ward

any

higher degree of ingenuity and

:

preventing those speculative ex¬
develop in periods of great
prosperity. In the present active business environment,
with basic materials', and labor in short supply and up¬

individual

industry

7

E°r the immediate future, the problem confronting
economy continues to be one of containing Jnfla-

the

cesses

in

new-car

by automotive instal-

t.

During the last decade conditions

clear

of a - big.
underlying demand for automobile
transportation that should express itself in new-car sales
in the
year ahead.

At

cs-

performance is
drastically repaid with failure, and
the cost
of
chips in the aircraft
game is high.

evidence

(4)

rvirmrlci

*

tionary

success.

used-car
is

pv

all-out

air

superior product

a

wave

requirements,

This

a

13.5

been

hectic,

superior

assured

sizable

competi¬

need to rebuild lowered liquidity.: Thus, the commercial
banks may be expected to see;'new peaks in loan de-

pro¬

does

again in 1957.

Throughout

the

company

proportion of these buyers should be back in the market
for

capital

>

..

commodity

next. March.

ducing

other

three

1

the

advancing

still

economy

industrial

dustry capable of designing and

savings have
time since

any

In addition to these indications

bought

1

slackening in operations and more

Another large

for

II, the aircraft industry has
competitive. National policy will continue during 195y
to recognize the need for a healthy and vigorous in-

climbing.

are

,

-

-

War

strength, Federal spending for defense is continuing
a
very
high level and expeditures for roa.ts and

at

.

v

L

In

some

year,

on
a broad front
continuing upward,
probably remain strong
and interest rates hold firm or perhaps even rise some¬
what, at least for the time being. * •

principal manufactured

our

is likely also

inventories.

business

demands for credit likewise will

months

J

a

the

With

President, Northrop Aircraft; Inc.

Employ-

incomes

Personal

higher rate

and

prosperous.

Personal

rising.

are

a

the end of World War II.
of

is

economy

continuing to be

for

ILLY

.

Following 5re some of the supporting reasons for
expecting 1957 to be one of the industry's two top years
every indication of

demand

:

next six

slowing down

a

of

conditions.

and

"

a reasonable working out of the serious economic
political difficulties abroad.'.
•
•
-

loans

able to

be

products—steel,irpn,, pipe, cement, lumber-and; paper - mands during 1957.
products—-will doubtless stay on* high levels in the "
In the'long-term credit markets, the. outlook also is
months | immediately ahead. It is believed that while J for requirements to continue high. In addition-to larger
the ^volume of business-generally will vbe large,'profit
corporate needs associated with the financing of record
margins will be less due to higher operating costs andplant and equipment outlays, there is; a substantial volkeener competition.
/
ume of municipal financing in the offing.
In keeping

v»o,nnnKi„

*

The

good.

'

business here in the

..

,

sold at retail, and somewhat below the record

of 1955 when 7.3

year

and

business.

:

cheapening the value of the dollar.

strength in

could

automobile

of

-

economy and indications of an increasing demand
automobiles, there is a very good chance that 1957
be the second biggest year in the history of the

for

amount

Aggregate

a

cially in the mortgage field," In our opinion, the; ever
upward spiral of wages results in added inflation thereby
-

the

the

and

tive

deposits;.;were slightly;
year ago but remained at high levels.vWe
the present policy of,credit, restraint adopted

in

concur

handled

highs.

the

of

well face

The

will

major industries, which have
running close to capacity in recent months, may

been
■

by the Board of Governors of the Federal Reserve Sys¬
tem which has had the effect of curtailing loans, espe¬

safety

models,

items

lower than

features.
In

of

new

The increased demand

good year in earnings.

a

and

accumulation

the

course

improved this industry in. the state.

experienced

reached

however, showroom traffic remained heavy week after
week.

banks

1956,

in

as

in

accessible to ample coal supplies
It is estimated that this operation will use

peaks.-

business

outlook is
There is some

the

steadily,

entered 1957. Business plant and equipment
undoubtedly will not continue to climb as

has

steeply

site easily

ex¬

of expansion at which the econ¬

sustain the rapid pace

and the Georgia Power Company, and will be lo¬

Federal

in

way

new

whether

however,

spending

pany

attain

to

trade

question,

a

In

Colt

Sloan

built by Southern Electric Generating
jointly owned by the Alabama Power Com¬

in Alabama.

is spending

as

penditures. - Moreover, despite ris¬
ing prices, consumers continue to be
willing buyers, and with wage rates

new

installed capacity of 1,000,000 kilowatts in 1964.

a

under

pears

The p.ant will be

on

moving forward,

largest increase in several years ap¬

have

cated

of construction activity,
of housing, are

exception

by state and local governments. The

It
investment of $150 million and will

an

the

still

gives every indication of continuing.

an

types

with

plant is to be constructed on the Coosa River.

will

•;

is
capital

Most

-:
■'
every effort to keep apace
growing demand for power. Substantial addi¬
under way at the Barry Plant and the Gorgas

the

pro¬

y%0 /. ; Vyy/;. , j
continuing- Jts largeexpansion programs.

L-^Industry

V

Plant

been

business of late.

4

production.

pioved in the last decade.
Electric utilities are making

have

which

sectors

viding most of the upward thrust to

The other crops made a fine showing.
The farmers are constantly using more machinery on
their land which results in better production at less cost.
Cattle is on the increase and the quality has greatly imof

multi-car familias

more

was

Coleman

S.

operating in high gear for
ahead, and there are
signs of important weakness in

few

yv,y

good

of

months

some

?^

While the cotton yield for 1956
less than the previous year, it
in line with the general average

momentum

economy

; y

year.

was

country

our

trend continues upward,

the

The farmers also have had a

buyers.

car-owning

of

capita income

•

:

tions

14%

While the per

business." The.

American

for

'

families.

Nearly

1957 gives .every promise, of being another

year

year

the

and

>

nation's population is estimated to
increase to 193,000,000 from
ibOjOjojGOO in July, 1956.
A major part of this growth will take1; place in tne
suburbs of the country's 168 metropolitan areas, resulting
in an important
increase in tne number of two-car

last year had two or more cars, con pared

The

in most sections of the United States

the

1965,

By

President, Bankers Trust Company, New York City

state is below the national y ,;
average, it has increased more; than A

move

newly-formed

tmse

COLT

SLOAN

S.
■

current activity, coupled with the sizable unfilled orders
already on the books, appears sufficient to keep the

in

y

the $4,0o0

a

good year.

a

good

climate!

ail per¬

annual income level taey are able to
spend more of their earnings for new automobiles and
other durable goods,
■
''
(According
to
estimates,
new
households will be
formed at an annual rate of 810, Ou from 1956 to 1960
and at an annual rate of 861,000 from 1961 to 1965.
And

1957

make

will

coal, limestone,'ah increasing supply of
trained
labor
and
a
favorable::

As more
to

continue

individuals

and

families

more

utmost

our

the abundance of many raw
materials-including timber, iron ore,

■

and

above

problem and to do

of the water¬

number

a

and

help achieve the goal of national security with na¬
tional solvency.
Continued dedication to this objective

ways,

incomes above $4,00 J-a-year,
In tne same
period, the number of families and ineividuals with
incomes below $4,000-a-year has decrease a by rt ,000,00J./,
Families and individuals with incomes above $4,000-a-

personal

year now account for more than four-fifths of
sonal income compared to two-tnirds in 1947.

with

nects

families and individuals with

States more than 14,000,000

feel that we must use our best re¬
technology to provide the low-

we

science

of

to

bama

of
the
market

good chance for 1957 to be
top years
Here are some
underlying our anticipation of a bigger
is

industry's

Northrop,

At

sources

cost solutions to a defense

year.

1956.

There

Alabama

experienced another good

in this section has

Business

in the highly
fields, as well as

important scientific and technical
skilled manufacturing groups.

Trust National Bank,

Birmingham

President,

many

panies have built up reservoirs of talent

COLEMAN

S.

JOHN

.

plants were geared up to produce more than 275,000
ot our 1957 Chrysler Corporation passenger cars by the

the

the U. S. aircraft industry has plowed
millions of dollars into new facilities de¬
signed around the anticipated requirements of the na¬
tional defense establishments. The well-managed com¬

back

the size of this plant.

addition which will nearly double

U. S.

end of

assembly

and Dodge

economy.

In recent years,

of 1954 for tnis same

and 50% ah^ad
L.

1956

whose

people,

realistic

1957; ant
Plymouth
plant. The conversion includes an

major press lines in operation by February
the conversion of the Delaware tank plant to a

business
was
ahead
cf
19o5, report record
orders running 100% ahead of 1955

sales

to solve this pressing problem by introducing greater
consideration for the dollar into the engineering and
Production cycles and by balancing effectiveness with

%

nlant at Twinsburg,
23

today and tomorrow. To
modern aircraft manufacturer must help

modern weapons of

succeed, the

projects in full swing include a stamping
Ohio, scheduled to have eight of its

construction

after tneir
30.
Our fleet

days

40

first

the

costs which r^cnif f mm immense rpcnomu
result from immpn^o research
development programs necessary to produce the

complex

Maior

between the

limited national defense budget and

a

rising

the
and

is

Corporation

Cbuys:

at

of the Atlas category.
customer today is caught

"of

tight squeeze

nroducts

nnr

military

The

.

_

models

new

ballistic missiles

^c^nt ye^

motorist's enthusi¬

really

the

of

"

The scrappage rate of cars that will need to be
replaced by new cars has risen steadlily m
and gives every indication of conti ui g
•
1956 very nearly 4,003,900 cars will be scrapped.
With
the number of cars increasing, we can expect scrappage
(5)

industry.

American

The
asm

1957.

time during

great, growing potential
the automobile

aircraft industry's total effort, with
devoted to commercial production.
Total production in the aircraft industry is expected
to top $8,500,000,000 in 1957. The character of aircraft
development and production has been changing in recent
years, with rising emphasis on missiles, ranging from the
small' air-to-air type guided rockets like the Falcon to
the giant intercontinental cruise type missiles such as
the Snark, and vast research effort on the long-range
of the

only 10 to 15%

1957—any\more

market in

85%

than

the

back into

coming

from

than those who bought new
cars in the years before. 1955 will be limited.
Our studies
at Chrysler, show
that 35 to 40% of the people who
bought new cars in 1955 paid cash.
Furthermore, a
substantial percentage of those who purchased ne)^
cars in
1955 on the instalment plan have already paid
off these obligations, or will have them paid off some¬

■

COLBERT

L.

L.

■

obligations

credit

ment

54

Continued, from page

constitutes-

more

Continued

on

page

58

t;

Number 5604

Volume 185

The Commercial and Financial Chronicle

...

(253)- 57

chartered banks'
lending policy to It follows from this that the total

Continued from page 24

central bank
ment

Canadian Economic

action,

was an agree¬

the part of the banks to

on

endeavor to

maintain, after May

Canadian
banks

of

assets

have

the

chartered

reflected

not

the

ex¬

it

appears

positive restraining force.

Sound Currency
intensity

the

fleeting

of

demand

field of capital expenditure.

in the

overt

short,

In

inflation,

which I could refer on this

to

occa¬

the

statutory cash reserve,
would average 15% of their Cana¬
dian deposit liabilities.

Reverting to the main focus
central
year,

bank

the

policy

Bank

of

in

of

the

past

Canada

the event, the banks endeavored to
meet, as fully as was possible, the
growing loan requirements of the

Under

restrictive

the

holdings
policies

nificantly

enlarge

amount of

outstanding credit they

should

the

aggregate

our

To feed

more

is

and

resolutely

rose
our

a

world-wide

the

expansion that has
newed
inflationary

Continued

It

its

of

surge

brought

re¬

in

pressures

train, Canadian expansion has

been

exceptionally strong and this
is

thus

is

country

no

particularly vul¬

nerable.
There

single

inflation

which

from

source

said

be

can

spring; it can arise from

to

general

a

reaching out for more goods and
services than are to be had, or
from excessive demands for

Neither, by the

wages.
can

single

any

lliy&
W8M;

higher

token,

same

be regarded

means

wholly effective in quelling it.

as

But of the

that

be

can

at

means

hand, the

one

brought to bear most,

quickly, the

that

one

be

can

ex¬

pected to act most powerfully and

pervasively,
clear

and

of

-

is

that

one

responsibility-

-

a

CUBA

DOMINICAN

$

a

<.

s

,

SUGARl

REPUBLIC

desig-_

_

hated body, is monetary policy.
FlOUR

Extension

The

of

"•W-/.-

Policy
To combat

Canada,

incipient inflation in
policy

bank

central

*.

HONDURAS

Monetary
GUATEMALA

^|||p
HI|§f 1

SALVADOR

EL

NICARAGUA

had

COLOMBIA

already shifted from "easy money"
in

the

of

summer

end

of

the

ensuing

that

year.

exert

RICA

are

financial

our

CACAO

state¬

bank continued

ment, the central
to

COSTA

In

that-

of

12

by

quite

months

October

covered

to

restraint by the

monetary

severe

1955

ECUADOR

varying
degrees of intensity, to prevent an
expansion in th'e nation's money
with

pressure,

In

supply.

market

consequence,

COFFEE

interest rates, apart from two de¬
clines
that
proved
temporary,
into

moved

ing

the

higher ground.
months,

12

Canada's

the

discount

Dur¬

Bank
in

rate,

of

con¬

formity with the upward trend in
market

2Y4%

rates,

raised

was

|

from

in four steps, each

to 3V2 %

of which carried it

historical

successively to

Since the
.beginning of November last year,
a

new

the

central

made

sive

to

peak.

bank's

even

rate

been

has

closely

more

respon¬

market conditions

money

THIS

by

being set weekly at a fixed
margin of V4% above the average
tender

for

rate

91-day

LIVING CIRCLE STRENGTHENS THE

While

ployed
tive
be

the

main

the

bank

out

carrying

traditional

money

of

one

market

a

central

transactions

to influence chartered banks' cash

special meas¬
ures proposed
a year ago by the
Bank of Canada with which, in
reserves, there were

the

chartered
readily complied.
One of
the

circumstances,

banks

these

was

to

refrain

from

addi¬

tional

longer-term lending, that
making leans longer in term
than
ordinary commercial loans
is,

or

purchasing

a

heights and then perished in the

great

on one

crop—corn;

We of the Americas now

survival. Today not

but

many crops

This type

expenditure,

been

expanding at

rate

than

national

was

would

their

general

ments

in

.

.

.

we

have

United

a

A

second

un¬

that the chartered
carefully
review
lending

commit¬

light of the need to
moderate the expansion of credit.
the

A third arrangement, designed to
improve the responsiveness of the




Offices:

United Fruit Company has

a

articles.

living circle of economics

friendship and better living.

Fruit Company
80

56

Federal

St., Boston, Mass.

been serving the Americas usefully for

years-reclaiming wasteland, stamping out

human skills,

transportation, to increase
sugar

disease, developing

helping by research, new techniques

and

the production and sale of bananas,

and other crops, and expediting

.

strengthens the Americas, bringing the

closer in bonds of

coffee, hides,

General

.

people of the American Republics closer and

had

more rapid
desirable in the

interest.

dertaking
banks

was

that

and products flow north¬

ward from Central America

credit, for which there is typi¬
cally a strong demand in periods
capital

Thus

realize that Interde¬

one,

.

and Central America's

refrigerators, telephones, cars, tractors, and
other manufactured

pendence is the key to our

abaca

goods and services flow southward. They buy

wkh others.

economic and cultural contact

of

high

jungle.

remarkable people
or because they lacked

Why? Perhaps because this
relied

cacao,

Dollars for these crops

security issue di¬

rect from the borrower.

of

lumber, bananas,

Maya civilization, centuries ago, rose to

The
technique em¬

restric¬
monetary policy continued to
in

AMERICAS

Treasury

bills.

communications.

year.

Nothing

switch of assets of

these dimensions within the limits

countries in recent months.

in

But

insured

$300 mil¬

securities portfolio

financial

source

many

and

over

our

prob¬

peculiar to Canada.

by

As

this

ing

approaching

problem that has been a
of
mounting
concern
to

a

loans

shows,

correspondingly reduced dur¬

vigorously

It is not, of course, a

lem that is

mainly of

was

money into the economy than is and
investments, taken together.
only a potential successful in keeping a tight rein justified
by the real gains in out¬
But they were to some extent free
must now report as a on the nation's supply of money put would simply add fuel to the
to vary the proportions of these
reality. So far, it can be said to which, at latest report, was
only inflationary flames and there are
be in
its initial stages and far slightly higher than a
preponderant assets. In the
year earlier. times, such as the present, when two
from rampant.
But that is all the
more
reason why it must be re¬

now.

current

lion, and

extend in Canada by way of loans

I

sisted

securities,

statement

own

bank's

sion a year ago as

threat,

of

mortgages

was

so.

it was

Government of Canada bonds.

pursued by the central bank, the
chartered
banks
could
not
sig¬

national interest that they

so,

for them to reduce their

necessary

Tight Money Phase

ercised, and in the face of infla¬
tionary pressures now confronting
us,
it is not considered
in the
be allowed to do

In order to do

country.
The Role of Banking in a

1956, a secondary reserve con¬ dicators of national production,
sisting of Treasury bills and day- income and employment. Under
to-day
loans
which,
combined monetary management as now ex¬
with

limit

to

pansion shown by the various in¬

of

Growth Depends Upon

desirable

increase in the money supply as a

on

page

59

,(254)

Continued from page

sion

may again, as in the not
decisive in setting the course of
American economic and financial developments.

distant past,

too

Further increases over 1956 are expected in Gross

National

National and Personal Income. The
be less than in the two preced¬

Product,

'

ing

„

in ; 1957 should
in produc¬

Growth

years.

*

to-increases

correspond

tivity, the labor force, and employ¬
ment.
There are, however, antici¬

from
the
economic patterns. These are

pated

re

1955-56

somewhat

farm

This,

in

remain

a

all at

trend.
There
number of malajustments

in

Conistock

production should continue at a high
shortages of steel will curtail some fabri¬
mineral production should continue at rela¬

Industrial

(2)
level.

Some
Most

cators.

Construction will be at

a

high level.

will

be

slightly lower,

cause

of
in

state

the

Delaware

dential.
To

organization

kept

New

&

through capital funds markets. For the early months oc "
1957, however, long term funds will be inadequate to
satisfy the demand on an annual basis of $43 billion
capital for business and industry.
(5) Interest rates will continue at a relatively high
level.
However, if signs of some distress is shown in
major economic segments, a change from tight money

million

spending is

sistance

will

pated

previous

a

increased

to

The year

1957 is

one

There is

some

re¬

in which the adjustments antici¬

part

correct

years

little doubtful,
prices.

the

of

unbalahce of the

B.

are

-T-s

two
of

r.oo

economy

first

the

it

banner

a

for

year

another

mands
ness

for

forecasts
year

credit.

intentions

of

for

ning

and

to

increase

public works.

are

panies expect to sell

more

cars

a

from

logical
the

home

palities,

Perhaps the developments of

answer

past

year

a

buyers,

1956

aggregate

consumers,

requests for credit
businesses and munici¬

of record .proportions. The total
exceeded
the supply of loanable funds that
was
coming from new
savings and from repayments of old loans.
It, therefore
became apparent to the
monetary authorities that if
those

were

credit

ali

requirements

were

filled,

the

volume

of

spending would outstrip the productive
capacitv of the
(economy.

That in turmcould onlv lead to
real increases in

lather than

Accordingly,

more

inflation

production.

policy




of

company's
is

completion

in.

new

customers

as.the

monetary

restraint

was

the

electric
&

Light

from

power

occasion

A

wide

other

or

transmission

system,

Company which will

deliver

power

to

that

...

an

sales

unusual

diversity

and

continue to" increase

in

a

favorable economic climate.
Although electric air con¬
ditioning, both-residential and commercial, is producing
an
ever-increasing amount of summer business, the
company's summer power loads have not yet exceeded

its

winter

mer

loads,

although the difference between

and winter demands is

Access

Jiving
hand,

to

and

quate

major

conditions
a

.all

centers

diversified

ration's

This

with

These

has

45,000

r

miles

square

one-eighth

of

territories.
the

'

nation's

known

oil

one-sixth of the irrigated farm land, produces

factors

recreational

-

Light Company's service

diversifica¬

industrial

stability with few parallels

'

.

Interestingly enough, despite amazing growth in resi:

dential

customers,

increased, this
than

the

the- per

year;

nation

continued

as

growth

whole.

a

residential

customer

by 13.5%,

not

classes of business.

company's

greater rate of

a

We

to show-

1957

expect

usage

growth

only in residential, but in other

Industrial increases

plant" in

1957.

to

around

start

bombers

area.

Near

add to the

will

Pampa,- Texas,

Construction of

May,

Amarillo

Celanese

the

Air

new

will

Force

construction;

Base.

one

in

one

in

cf

fifty-six,

The

the

company's

motion program,

Texae

Pan¬

already under

magnificient

Roswell,

z

saw-

strategic

new

N.

M-,

Amarillo, for which ground

broken this month.

Nineteen

expected

runways,

bring

A national chain store has two

under

almost completed, and
was

1957,

first expressway, 35 miles
long, is

buildings

effect

an

....

-

electric

appliance

inaugurated in 1954, and

«

cumulative

outstanding

dealer pro¬

an

aggressive

continuance of the program will
bring even greater re¬

at

'

s

to

construction.

sum¬

close

growth.

Corporation has just announced the building of a new

through ade¬
facilities, good

facilities

farm and

a

economic

an

in the nation.

population

transportation

give it

tion that provide

low manufacturing tax rate and a mild climate
reflected in the rapid growth and development

of Delaware Power &

of

area

an

outstanding growth

area

reserves,

becoming less and less
of

serves

,

diversity of chemical, steel, fibre,
food processing, auto
assembly

company's

1958.

company

handle

the

flavors,, have all laid a solid foundaThere is no'-doubt that 1957 will

years in the"-history of our industry,
per'capita soft drink consumption goes
mark which.we missed because of the

the

over

the

during December,
City Power Station,

stability.
Thus

bought the Mission

we

embracing part of Kansas, the Panhandles cf Oklahoma
and Texas, the South Plains of
Texas, plus the Eastern
and Feces Vallev areas of New Mexico.
It is one of

up

requires.

offer

1955, when

J. E. CUNNINGHAM

coming

rubber,

industries

»

De¬

The company has no single dominant industry Whose
business adverses might seriously affect the'
company's

well-being.

"

r

,

95% of the nation's potash and 50 %; of the carbon black.

starting

Delaware

Power

as

year,

President, Southwestern Public Service Company

Oil

with

coming

best

ie

,

,

supplying the electric power and
requirements cf a new major industry in Dela^-

receive

and

average

t

weather in

now

Delaware

are

a

the

of

company

leather,'textile,

the question.

to

for

necessary to connect
lines during the year.

station

S5dney B. Consrdon

are wondering whether'suf¬
ficient credit will be available in 1957 to
keep the econ¬

During

scheduled

way 'on. the

the

tvr

generating

a

either

than

Many business observers

provide

under:

also-

of

Our

of" the

large requirements for credit and that in turn spells
of favorable earnings for the banking
industry.

levels.

unit,

is

as-,

new

one

1958.

interconnected

for

3 ear

peak

electric

consolidation,

as

is the completion

Company's new modern cil re^
l'inery recently put into operation near. Delaware City,
Delaware. .Although designed basically to serve the re¬
finery with electricity and steam, the bower station is

plans, of course, Involve

omy at

Work

1957.

1,

ware—Tidewater

in the past year while the residential

_

kilowatt

homogeneous.

more

be

-operation

steam

com¬

construction industry hopes to match
last year s dollar outlay. Such

program

each

Cott,' particularly, the past year has been a year

t-o; uriion of

Indian

With the completion and

1956,

plan¬

expenditures

The automobile

80,000

two

new

similar

the

the

de¬

Surveys of busi¬
new plants

municipalities

1957

in

tion for future sales.

,

construction
items
in
the
1957
program
in¬
general "firming up" of the company's electric
and gas systems. Numerous new
substations, higher vol¬
tage transmission lines, heavier distribution lines and
gas mains will be required, all in addition to the r.ew

on

.tnd equipment indicate such outlays
will exceed the record total of 1956.
States

in the

States

preferences of people everywhere become in¬

Dry Corporation, was a year of acquisition. The com¬
ing vear will be a. year of growing sales and profits
for the entire ineustry.
The introduction of king size
bottles, the increased use of "carry-home" cartons, in-

ex¬

.

facilities

1957

of>

United

the

of

taste

For

Other

so

install

to

these

Nov.

clude

the

strong

plants in Germany, Portugal, Spain, Iran and
Africa. The addition of the new bottlers will be
beginning. We look forward to increased sales

,a

creasingly

River Power Stationpresently
construction near Millsboro in southern Dela¬
This first machine is scheduled for

•

favorable

The

suggest

of

the

cember,

are

was

In

outside
the

customers-

about

....

banking business.

•but

.

ware.

the over-all

for the over-all economy,

world.

S13

distribution, lines' and

approximately 55,000, electric

■

major item

under

The

year

cf

11,000 gas customers have accounted-for

A

1956 proved to be a record-break¬

ing

from

,

If their expecta¬
realized, it will be an excellent vear for bank¬
progress of banks inevitably reflects the pros¬
perity of the families, businesses, and
communities which they serve. Just
ing.

increased

to which Americans are

long been popular in other parts of the
1957, Cott will open new Quiky and Mission

have

turning

Power

/Projecting its continued'expansion program into the
future, Delaware Power & Light Company s construction
plans call for an investment in plant of over $28 million
in 1957 and about $50 million during the two
years,
1957-1958.
'
'
-

operate at record levels during 1957.

tions

1956, Delaware

have

revenues

penditures.

Bank of Cleveland, Ohio

business observers expect

Most

to

lines, extension

addition of

and

second
to

1946

'

The citrus flavored beverages

million annually, while revenues of S48 ? bottling
forecast for 1957,
The construction of plant-- Angola,

transmission

CONGDON

Chairman of the Board,

The National City

flavored drink.

$38

to

units at

SIDNEY

Quiky division,, which manufactures a grapefruit-lemon

been

.

between savings and spending.

as

have

during each of the 11
years. During
these years,

facilities to meet the increased business during that
period has required the expenditure of.almost $140 mil¬
Three, new
generating plantsv,s.new substations,
line extensions, conversion to straight .matural
gas, few''
the

Con¬

records

plateau where they account for about 1% of

a

industry sales and 5% of Cott's sales, the year
brought a sharp increase in the demand for tart specialty
beverages. To meet this demand, Cott has formed the
the

lion.

follow.

that income will go into savings.

sales

postwar

Light-Company's

million

(6)

sumer

Cooper

from

funds from savings should be available also for industry

because part ot

settle at

busy

established
Stuart

curniet

interesting that whlie 1956 saw the~gugar-free beverages

tion schedules.

By mid-vear, additional

Retail trade should be good, but part of the dollar
volume will reflect increased prices.
Retail trade will
get a slightly smaller share of the consumer's income

been

coming year will bring a further development of
trend towards citrus flavored drinks. It is

The

the

revising and advancing its construc¬

money

v/ould

ing year—annual per capita
as high as 560 bottles.

hit

Company's

has

in the com¬
consumption of soft drinks

country Cott and Mission will concentrate on

industrial.

and

Delaware Power & Light

.

af¬

the coolness of the summer ran ahead of our
most hopeful predictions for 1956. Wn Texas, soft drink
sales rose 11% ahead of 1955, in Georgia 15%, and in
California
10%.
Cott's own sales in Florida jumped
100%! In certain areas in the South—the section of the

electric capacities

gas and

-

not

were

fected by

Reflecting this^
population, the
Light Company

commercial

assure

soft

of

Sales

not because the ther¬

—

all-time records.
drinks ..'in regions that

breaking

is

mometer

adequate to meet these growing sales
and
demands
as
they
arise,
the

Emphasis on savings, publicity on higher interesst
bring to financial institutions considerably

supply funds for mortgages.

&

they like them-

because

just

long enjoyed and is continuing
to
enjoy ever-increasing sales of
gas and electricity in all of its cus¬
tomer
classifications; that is, resi¬

which should be available for mortgage
financing. This in turn should re-adjust the patterns
of 1955 and 1956 where savings proved very inadequate
to

increasing"
Power

steaaily building up an ever larger boay of con¬
who drink bottled beverages alLthe year round

are

Valley.

so

hot-weather, season

sumers

has

rates should
more

River

rapidly

local govern¬

some

COOPER

Delaware

This applies

engineering personnel and the price of money.
(4) An increase in savings is anticipated with further
acceleration in the rate of savings which began in mid-"
1956.

-

capabilities.

our

look

future

the

for

ended,
Cott's sales began running 8% ahead
of the previous year.
They picked
up
momentum, and -kept moving
well ahead of 1955 for the remainder
John J. Cott '
of the year.
In those "off-season"
sales lies the key to our future. For
the fact is that our advertising and promotional efforts

trying to do too much

as

.

.

Almost from the moment the

bright.

recent census figures show that Delaware
position as the second fastest growing state
the Mississippi River and the fastest growing

projects, where possible, might be postponed be¬
of shortages of steel and other types of products,

ment

thing

10%. ■ j ' ;
'
careful .look at the
sales figures reveals why the

•normal

its

especially to electric, natural gas and some other utilities
which cannot postpone necessary expansion.
Housing
construction

1958

.

more-,

a

prosp2cts

Board/Delaware Power & Light Co.

tively high levels, but lumber production may decrease
somewhat with fewer housing starts.
(3)

But

might'

year

volume

our :

off by about

-

most

retains
east

of the

the
still

.

setback in the business picture.

a

STUART

The

subsequent

some

wishes geared to

our

Chairman

livestocks.

and

keeping

prices and

among

a

Monetary policy is a tool that can be of help

ctfice.

in

droo,

average

or

Clearly, there is such

bottler in the Northeast.' While
suffered a smaller' than "

Cott's sales

Northeast for the past year was

increase.

reversal of the

downward

a

1958

then help avert a serious

production of
specific agricultural products.
Re¬
duction of farm surplus are of major
significance.
In a large portion of
the country drought will affect crops

as

J.

is

in

reinstatement

y

on

-every

continuation of the 1956
policy is proper and is to be expected. Its continued
success "would'do
much to keep the economy sound',
thereby-facilitating further growth in the-years to come.
True, this may mean that some housing developments or
public works or plant expansion projects may be post¬
poned during the coming'year. However, their timely
Prospects for 1957 suggest

,

the Atlantic seaboard left its
the annual sales figures of

along
mark

.

should

income

turn,

five-year

Ralph

follows:.

as

Total agricultural income and

(1)
cash

adjustments

-

of individuals

sion in the money supply,

should

increase

of

rate

*

1957 promises a generally high level of busi¬

The year
ness.

supply, as

money

checking accounts

Idaho

of the

measured by currency and
and business,' showed
just a nominal:rise during the year.. It follows that the
monetary authorities achieved noteworthy success in
their efforts to sustain a high level of business activity
without contributing to price inflation through an expan¬
the

Yet

President, First Security Bank of Idaho, Boise,

sales are going to go up in 1957—irrespective
weather! I make that prediction with toe utmost
toniidence;
The- weather hurt the soft drink industrv
in 1956.
The coolest summer in more than a decade

new

COMSTOGK

J.

,

Corporation

Eeverage

was

attain

COTT

.'' President,,Cott Beverage

i

active ancl strong.-As iVturned- out.- sufficientmade available to enable the economy to
record levels moderately above those of 1955.'

economy

.cred.it

prove

RALPH

the

to

Thursday, January 17, 1957

. ...

JOHN Ji

V

This policy was designed.to limit credit exten¬
amount really needed to keep the over-all

adopted.

56

horizon

international

the

on

1

Financial Chronicle

Commercial and

The

.53

sults in

1957.

Appliance sales in 1956 toppbd 1955, the
<

•

^

...

-

Continued

on

page

60

Number 5604

185

Volume

.

|. The

.

Continued from^ page 57

Commercial and Financial Chronicle

other banks
major
not

Canadian Economic

e

°i

Growth Depends Upon
Sound Currency
of

virtually

a

sheet had

139

the

of

history.

our

been

possible

but

Government

It is,

which

be

our

bay within

regards

conviction

that

essential

of

in

the

consistent

a

tight,"

kept

inelastic

by the
-bank,'
and
total
bank
in the form of loans and

central

credit,

security

or

holdings

combined,

tup0rJa^
the
cannot

But

be

same

credit

bank

mercial,

the

said

6f

form

industrial, and

It

loans.

in

is

plain

for

has
of-

own

Canada

to

press

need

on

that

we

inflation

at

if it

borders

coun-

plans accordingly,

Secondly, it is an enemy against
which the opposing forces, if they
are to be successful, must above

with
employers, also have a responsibility to keep demands for higher
pay within the limits of the real

we have close
Fortunately, how-

ployees,

The greater

all be maneuverable.

in

recent

and

years

the

the

countries

new

alive

to

danger and resolutely de■

.

,

termined

before

are

it

-

to

jv

I.

scotch

gets out

.

the

.

With

reflect upon the-manifold varying degrees of reliance

banks,

in

so

of

fully

the

be achieved from
;

And it goes without saying that

governments at all levels should

in

not press their claims on national
resources
9t a time of excessive

amples of what I mean.'

demand.

.

,

.«

With the

growing diversity and

Yet, thirdly, these same qualic^an^es °T the past year I find various means and devices, and, ties, a*e equally required of Others importance of means of attaining
myself- continually - preoccupied admittedly, with varying meas- in the community. The business security of future income, whether
with the problem of resurgent in—ures of success, such countries are man or individual who finds credit in hank deposits, in investments,
flation

and

These, it

the

fight

against

it.

on

nonetheless moving to combat in-

seems to me, are some of flation

and

there

is

thus

every

less

readily

accessible

than

^fe insuiance or in pensions

he

Continued

would wish should appreciate the

on

page

com¬

to

see

that the banks, and this bank par¬

have

ticularly,
in

way

that

economic

that

growth

This

is

function

the

of

very

RUBBER

COMPANY

1$

N'>••••$>

\

11I&&

II

"WORLD'S LARGEST MANUFACTURER OF

in

not

rightful and
bank

a

respect to its role
can

the

a

JP^

GARDEN HOSE-RUBBER AND PLASTIC"

of the attainable.

excess

I

is

SWAN

long
degree of

gone

financing

with

say,

of

Bank

and

as

is

with

pride,

some

Montreal

to its stature

proper

it

lender that

a

has

that

added

and its service to the

community during the past year,
despite the fact that the totals at
"the foot of its balance sheet

perforce, scarcely
Needles

to

securities
both
in

to

loans

the

disposal of

substantial

take

of

care

and

have,

Changed.

say,

in

amounts,

the

increase

achieve

to

the

re¬

quired level of secondary reserves,
not

was

accomplished

penalty in
terest

rates

therefore

and

clining bond prices.
of

selling

circumstances

meeting

the

de¬

under

Lightweight

—

eas^

these

justifiably be

may

the

as

of

But the cost

securities

regarded

without

period of rising in¬

a

special

cost

legitimate

of

require¬

ments

of. commercial

borrowers

within

the

a

confines

of

national

monetary policy which, in its

nature, has aimed at

very

over-all

an

"

stability of the Canadian assets of
the chartered

V-

\

%\ \>

*M.

banks.

*

As another consequence of-these
circumstances, the banks increased
>

the rates of interest they pay and

receive

bringing them

into

more

line with market and other inter¬
est

rates.

made

Upward revisions

during

the

were

of

course

the

both in the rate paid on sav¬

year

ings
deposits
and
in
the
rate
charged on commercial loans, the
increases

in

the

latter

being the

first in many years.
I

have

shared
ficers
to

by
of

which
the

the

which

meet

the

we

tary

in

have

had

have

been

to

my

is

know

bank, in

and

the

of¬

extent
able

to

requirements

of

been

difficult

the

conditions

have

I

directors

credit

clients

our

mentioned

already

satisfaction,

mone¬

which

under

In

work.

this,

we

WMM

we

by
the principles
of- sound banking
that have stood us in good stead
over the years. It is worth adding,
in

guided,

as

always,

this connection, that during

past

year

our

loans

in

the

Canada

have increased significantly more,
in relative
terms, than those of

"C/f^uhcTtcU
return

Creson, Sledge & Go.
Formed in Dallas
DALLAS,

P.
Creson and C. Robert Sledge have
formed Creson, Sledge and Com¬
pany with offices in the Empire
Texas

—

Robert

Bank

Building to act as under¬
writers, distributors and dealers in

industrial,

bank,

oil

and

Both Mr. Creson and Mr. Sledge
were

formerly with Southwestern

Securities

Company, Mr. Creson
in the Sales
Department and Mr.
Sledge as Manager of the Trading
»

Accounting Machines save us $22,500 per year...

110% of their cost annually!"

—SWAN

$22,500
on

our

a year...

an

annual return of

110%

production to increase

is

counts

about one third this

the

promote accuracy, while enabling our oper¬
ators to

do their work with less

effort."

enables

us

to

use

the

Payroll, Sales Analyses,

of the National

same

The
the

new

firm

McMahus

is
&

system.




a

member

Walker

wire

THE

NATIONAL

business, too, National ma¬

your

will

money

pay

for themselves with

they save, then continue

savings as annual

National
much

you

operators

This means a sound accounting system

essential. The flexibility

In

chines

Receivable.

"The many automatic features of Nationals

investment.

"Our volume is expanding and we expect

year.

Control, Accounts Payable, and Ac¬

ventory

man

can

profit. Your nearby
gladly show how

will

save —

and why your

will be happier.
u, $. RAT. PfR.

MARK

machines for
President

Production and In¬

Department.
of

COMPANY, Bucyrus, Ohio.

RUBBER

r
"National Accounting Machines save us

mining

securities and mutual fund shares.

Em-

relations

personal'

all

means

higher productivity.

chartered

demonstrated

their

can

if it

sacrifice.

the past year, are noteworthy ex-

..

,

trouble

of hand.

adaptability

even

immediate

some

.

policy

most

be

spending

his

adjust

to

flexibility of Canadian monetary gains that

ever,

and

hope that the outcome will justify
the effort.

pur-

lending

restraint

credit

for

prepared

tries with which

take thought of what
policy.
' • ! '*
therefore, when we talk1
*
'v :
: <\! :
prevailing "tight money" or
A Fight on Many Fronts

irftotal,Ca^unt^as^i^ee^been-'''" AS'^

our

expected
hold

easily,

or

continues to gain ground in

of

mean,
!

can

for

reason

59

with the fight and every reason to

economic ties.

position

a

Canada

that must

battle that cannot
quickly

be

to

in

these

a

either
it

In

phase.

suance

is

entered the tight-

we

strength is

firstly,

won

Nor

must

We

of

for

securities

~~~

we

the predominant points
be borne in mind.

a

strong position in respect

very

nquid

money

occurred before in

years

Such

the past year has
amply confirmed

unchanged balance

ever

whole.

a

realignment of assets would

have

with

as

(255)

CASH

COMPANY,

REGISTER
989

OFFICES

IN

94

COUNTKIES

DAVION 9, OHIO

emotional
MAwm

*

<a$h mums

.y'^v

61

in

58

previous year, by nearly. 16%. The company does,
not merchandise, but works closely with independent
electric appliance dealers ,throughout the area.?
■,: /
»
the

mid-June,

In

started

company

sales promotion

a

electric cooking equipment.
Nov. 1, 1956, this program, although only four and

program

By
one-half
the

the prospects
each

old.* had

months

added

already

■

an

estimated

a year in revenue.
Nineteen fifty-seven
first full year of this commercial activity,

$45,000
be

commercial

on

for

day.

'•

■

Nineteen

will

and
increase look brighter

large revenue

a

■";

fifty-seven should be

most promising year

a

viewpoint, with increases apparent in all
classes of the company's business, and continued growth
in all business in one of the nation's most
amazing
from

our

growth

the

of

President,

and

Board

comments for your

business

activity and
commercial growth.

With

December

compiled,

figures yet

estimate

we

industrial
to be
electric

that

kilowatt hour sales in 1956 will show
as

12.5%

residential

to

commercial,

trial

show

to

cial

indus¬

to

approximately as
21%, commer¬

to

estimated
The

000.

in

bulk

956

the

for

,

P.

Crane

a

these

of

year,

our

new

Herbert A.

Wagner Electric Generating Station was placed in com¬
mercial operation early in 1956, and construction was
immediately begun on a second unit, of similar size,

large

programs

includes

sixth

smaller

5

in

two

size;

1958.

major
station

"gate"

13

Our
gas

to

1957

be

placed

in

expansion

service

in

also

program

main

and

a

installations; one being a
12V?-mile extension of 26-

inch main to provide another supply line for natural
gas
to serve the rapidly growing southern part of the Balti¬

Metropolitan Area.

more

and

operation

aggregate capacity

of

the

eight

having an
10 million kilowatts, and

of almost

creates what is believed to be
fully integrated power grids,
almost 15,000,000.
v
All records for

new

one

systems,

of the world's largest

serving
.

population

a

-

.

of

.

business obtained from industrial

and commercial customers were broken last
year.
Con¬
tracts to supply new. electric installations exceeded

by

40% similar

business obtained in 1955, and the gain
in new gas contracts also
surpassed the total of any
previous year.
These new electric and gas contracts
-are

for

new

service

to

widely diversified industries, includ¬
ing large manufacturers of aluminum products, build¬
ing" brick, stainless steel, electric insulators, communi¬
cation equipment, portable
tools, air armament, and frit
smelting,

such

ments

well

as

as

as

number of commercial establish¬

a

regional shopping centers, hospitals and

Residential

While

weaknesses

of

factor

history,

t

V.

' '

_

'I

-

in

primary

approximately

with

million

50

More than half of this

handled.

good.
% Full

of

tons

cargo
under the classi¬

came

indication that the high levels of industrial, commercial and port activity will be maintained
through 1957. Sales of electricity and gas to all classifi¬
cations—domestic, commercial and industrial—are ex¬
pected to exceed 1956 sales by percentages comparable
last

shown

increase

industrial

New

year.

1956.

in

petition.

President,

.

H.

maintenance

of

in

peace

see

these

product and substantially full
It follows also that the

ment

able

income

have

In

and

should

be

but

Truck

should

sales

Harlow

H.

of

*

should have

a

dealers

and

suppliers

:

profitable year."

needed both to
to

will

assure

the

be

increase

to

in

1957

Similarly,

the

on

%

construction

construction, although somewhat below the

added

a hgh level through¬
with about 14,500 dwelling units completed.

year

some

more

than

to

15,000

residential

11,000 residential

lines.

our

In

the past

tion growth in the 2,300 square mile

Company has been equal to

Virginia,
The

sions

or

of

totaled

in

existing

over

a

new

10 years, popula¬

area

new

this

served

by

at

industries

as

over
were

concerns,

con¬

establishment

industries

of

of

the

greater

of

to

face

of

paper

V

industry,

east

industry is anticipated.. Prac¬

every such mill in the south¬
has expanded

production,

establishment of several
in

continuing

the

paper

which

in

set

'

.

tically

'

*.

|1

consumer

t

Additional growth, of the pulp and

national level is

a

|

a

meet

new

Available

area.

mills and

other

demand, and the

the

C. McD. Davis

plants,

new

sites

and

or

locations

an

announced

all-time

a

during

1956,

high, which

was

The additional

result of this industrial
growth

12,000

employees.

While

some

30

included in the
above, the bulk of

convincing




evidence

that

es¬

industry

steady but

Housing starts will

aid

Spending

new

highway,

for

$700 million

Although

new

not

highways

getting

should

area

at

necessarily

a

barometer

spending

of $42 billion* or somewhat

should

of

be

prosperity

in

higher than 1956.

ernment expenditures at all levels also

can

the

Other gov¬

new

billion.
and

as

we

gross

high

This all

must, that
national

next
adds

peace

product

of the

be expected

year—possibly

and

as

rise

high

to
as

an¬

up,

in my opinion, to

better things.

,

see

more

a

thriving

people have

a

number of major

housing
state

to

area

•

the

state

large labor force
already heavy influx of new
areas

meet

being
developed
requirements of the

are

the

and continued

steady growth

is assured.

has

long

been recognized as a leader in the
citrus fruit industry. It is
currently estimated that the
Florida orange crop for the 1956-57
season will approxi¬
mate 95,000,000 boxes
which compares with
boxes

$435
,

vigorous economy that will

more

for the world will
should

New

the

ever-increasing population
Florida

the

augment

throughout the

"

Assuming,

other

will

residents.

area

to rise.

prevail,

it appears certain that

operations of that type will be established in
during 1957. Such industries utilize a

least

which

defense

type.

activity, particularly in the
Florida, in the chemical, aircraft, and electronics

locations and

underway.

increase

and

nationally known companies
locating plants in Florida and
already under construction. The
aircraft industry is
showing particular interest in Florida

last year.

over

progress,

just

program

pulp

water-using industries are
served by Coast Line still offers

industries.
A number of
have announced plans for
several such plants are

will

impetus to business activity will be the

A further

Federal

non-residential structures

more

for

large

State ol

and

large industrial investment is for expansion
by

tablished

our

city the size of Norfolk,

15% greater than for the previous year.

estimated

customers

industrial plants and expan¬

industries,

$304,000,000,

labor requirement
is

cusi

electric
gas

Providence, Rhode Island.

investment

the

variety

demands

be built.

were

improvement

upward trend during the New Year.
remain

the

a

progress

many opportunities for industries of this
There is a great deal of

out the year,

and

be

encouraging. Indications now
slightly better year than 1956,

plans have been announced for

the

high demand for such goods.

will

1957

market.

.

"

in

,

for 1957 is

plants, as
well as expansion
existing industries, in the area
by Coast Line is impressive

wide

our facilities and products modern
sufficient capacity for what we think
normal
growth of the market for our
~

that

resulting in

.

Spending for capital equipment
expected

outlook

tinues to attract attention to the area

keep

:

DAVIS

/every section of the southeast

us

products.

McD.

in the general
economy of the southeast.
Population growth in almost

also

During 1957, General Motors plans to spend about $700
million oqtcapital investment.
- This
amount 'will ' be
and

will have to work harder to achieve those results.

and is indicative of the

•

Motors, I see 1957 as our second best
year, exceeded only by 1955. We spent an all-time high
of $630 million to bring our. new line of cars and trucks
to the market place. With these
styling, engineering and
our

one.

served

General

advances

successful

new

approximate

pared with 7,400,000 in 1956.

mechanical

a

in industrial and commercial
expansion will be made in the southeast. Investment in

Curtice

Total production, including Canada and the ex¬
market, should reach 8,300,000 vehicles, as com¬

For

this year

also that further

900,000.

port

reduction

our best judgment at American Invest¬
Company indicates that 1957 will be another good
for the country, for business and for our company

we

are

sales may well reach
about 10% above 1956.

or

the

on

Many. of

make

to

The

industry, 1957 should
good year.
Domestic

passenger car

6,500,000,

concentration

increased

C.

own

another

new

President, Atlantic Coast Line Railroad Company

economy.

be

of

more

willing to spend it providing there
is
a
prevailing confidence in the
my

$42,500,000

summary,

year

dispos¬

more

.

completed

f

ment

should

market which gave rise
We do not see any

money

.

this ' reservation," we should
in our gross na¬

consumer

tight

com¬

,

to

expenses.

further rise

a

con¬

the 50 new offices which we
opened in 1956 will begin to add their proportionate
share to the company's net earnings this year. We believe
concentration on net profits will be general with most
corporations in 1957; We look for 1957 to be the year
of "increased corporate efficiency."
*
•
To support all of this economic activity in 1957, it is
our opinion
that both business and the consumer have
the necessary confidence, in. each Other and in govern¬

troubled times.
With

a

in spite of increased
-

Investment

with

offices
of

the

on

for

financing during 1956 which we believe will take care
of our anticipated growth during 1957.
We expect to
open and acquire some new offices during the year.
Our
plans also call for continuing efforts to develop all our

CURTICE

predicated

demand

in this situation, at least for the first
Tight money probably
affect consumer credit by increasing
selectivity and reducing the rate of growth in

American

General Motors Corporatiom___l

be

the part of consumers
the

institutions.

some

of course, is the international situa¬
forecast of business

activity must

.

1957 and perhaps longer.

customer

Of mayor concern,
any

had

we

continue

will

ahead should set another record for business
with the automobile industry contributing
substantially to this advance.

and

"

continued

signs of change

The year

tion,

...

and

increases in the prime rate.

half of

generally
more

on

'.

-

.

increase

•

In 1956
to two

The

HARLOW
,V

;

employment

1957

materially in

increase

and

and electricity

gas

of

lending, we think the rate of increase may be slightly
less than in 1956.
We expect our own receivables to

rising trend in residential usage
is certain to continue; the
result of good employment conditions and commensurate
income that prevail in this area, combined with the
constructive efforts which our Company is conducting
to
promote modernization and broader utilization of
services that are basic to American standards of living.
both

believe that the general
the country should be

we

1957 as compared with 1956.
Most of this increase will be in the automobile instal¬
ment credit field.
While we predict continued increases
in consumer, credit and our own field, cash instalment

There is every

the

some

credit somewhat in

sumer

with the exception of wartime 1944.

year

develop

may

confidence
will

high record of 5,735. The value of goods moving in
foreign trade exceeded the $1 billion mark; greater than

previous

M. Curtiss

Lawrence

a

any

1957,

economy

Steamship arrivals established

fication of foreign trade.

all-time peak of 1955, continued at

tomers

in¬
con¬

pf high personal income.
tight labor market with prac¬

a

highs in each of the last four years, should continue its

government agencies.

During

a*;

tically full employment.

In

An important development, looking to increased re-l
liability and economic efficiency of electric service in
the Baltimore area, is an interconnection
agreement re¬
cently entered into by our Company and seven other
investor-owned power systems iii Pennyslvania and New
Jersey. The agreement provides for coordinated develop¬
ment

future

and

indicate

reports

tinuation

employment.

of

and

All

industries

J

:

■

tional

1957

employment

come.

and

stations

■

which .have

agencies

and; State

City

tinued
.

projected for the immediate future.. Large projects for
agencies of the Federal. Government are also in early

scheduled for completion id January, 1959. A new
large
master substation, with tie cables and
transformers, is
to be constructed, together with 18 new electric sub¬

,

-

.

slackening in residential building here during the. com¬
ing year, but this should be offset" by construction for

will amount to approximately $233,000,-

The first 125,000 kilowatt unit of

'

.

_

for

expenditures, av/raging about
will be for the expansion of our
electric system, and about $9,600,000 per year will be
spent for expansion of the gas system.

$35,000,000

.

almost $39,000,000, and it
this purpose during the

were

total

Charles

electric

Expenditures

that

next five years

continu¬

increased

for

construction

new

these

meet

service.

gas

-

American Investment Company of
Illinois operates
more than 400 subsidiary loan offices which, are located
metal closures, por- /
in 31.states across the nation. Our plans for 1957 must
celain
frit, shipbuilding-.and ship repair. ' Plans are
1
necessarily be based on an analysis of the national econalready under way for further expansions in various
oray as well a$significant local con¬
fields including automobile assembly, oil refining, refracditions and trends.
tories and plastic products.
S ' * -y \ • V.
; The
growth of consumer credit,
Large scale commercial. developments are scheduled
■
particularly cash lending,, is deter¬
for 1957 to accommodate new and enlarge ^residential
mined by.the degree of confidence*
sections. In line with the national trend, we expect some
which the consumer has in his con¬

of

Company is rapidly expanding

demands

and

V
J

T.,.

of Illinois

primary - metals and metal products—-steel, stainless steel
and aluminum—paints and pigments, aircraft; chemicals,

obtained

residential

facilities

ing

is

9.7%

10%, and industrial 22%.

Our
its

and

increases

follows:

.

Company

Investment

American

.

commercial requirements for our services, now foreseen,
will equal or come close to the record-breaking totals

Sales of gas are expected

users.

CURTISS

electrical and electronic equipment;

to

compared with 1955, of
customers, 9%

increases,
to

are

M.

First Vice-President,

importance in Baltimore's eco¬
is the Port. Business of the
Port of Baltimore during 1956 was the best in the City's

Annual Review and Out¬
look a year ago, I expressed the opinion that in the
Baltimore area, 1956 would be a year "of uninterrupted
progress to higher levels of business achievement." This
forecast has been borne out fully by
results which show new high records
and

which are still in
for increased- production of-,,
of

number

a

nomic stability and progress

\

Baltimore Gas and Electric Company

of

year,

of construction,

stages

A

CRANE

CHARLES P.

my

last

LAWRENCE

The major expansion projects

thriving.

is

area

prospect. '

areas.

Chairman

In

this

initiated

best

-

Thursday, Januaiy ■*17f'J9o7

...

(256)

Continued from page

-

Chronicle

Commercial and Financial

The

60

for

the

1955-56

season.

This

should

91,000,000
ordinarily

.increased movement of fresh fruit from Florida,
and-increased movement of fresh
fruit to the processing
mean

Continued

on

page

62

Volume 185

Number 5604

.

.

The

.

Continued from page 59

Commercial

and

Financial Chronicle

Exch, Firms Govs, to

Meetings
centers

r

Canadian Economic
;.

The Board of Governors

Association

of

Firms will

Sound Currency

hold

Stock
its

Exchange

winter meet¬

Edgewater Beach Hotel
under
private
or
government in Chicago on Jan. 24 and
25, it
plans, Canadians in all walks of w^s
announced
by
E.
Jansen
life have a 'Vital, and continuing Hunt,
White, Weld & Co. Presi¬
interest in preserving the pur¬ dent. Edward F.

Thompson, Jr. of

"

Sound Money

Lamson

resident

Prosperity
Sound money* by which I
currency

that

has

&

Co.

and

members

ciation,

mean

Governors
are

in

of

ing

ent,

association
the

work to win both.

we

Much in; the news

New

t

of

member

York? Stock

firms

of

sachusetts, New Hampshire, New'

of

Jersey, New York, Pennsylvania,

the

tendered

Rhode

elected

officers

Opens

Executive

.

(Special to The Financial Chronicle)

is

conducting

business,

offices

from

Masonie Building.

the

.....

conferences

Commission

ings

'■-*

;;

State of New

savings banks, and to'

the banking practices throughout the

of

Association

Banks

and

Sav¬ promote the highest standards of

Secretary,

various states.

York.

I

Eco¬

nomic Prospects whose forthcom¬

ing Report will paint a picture of
our economy may be like a

what

VMV.V.VAVA

quarter century hence. I do not
what the Report will con¬

know

tain but I venture to suggest that

estimates

its

of

possible national

production in 1980, expressed in
physical terms or in dollars of
constant
well
can

purchasing

power,

may

stagger the imagination. We
have that kind of real pros¬

perity^

and

Industrial Chemicals

have those
dollars
of
constant
purchasing
power, if we so desire. Or, if we
we

Leading the product list is a new fam¬

can

I

much too

quickly,

different kind of

have

we can

larger iq dollars, but in dollars of
smaller value.

much

It

to decide which kind of

which

and

in

want
in

for

is

dollars

12

the next

us

prosperity

of

kind

months

pane,

Agricultural Chemicals

a

prosperity, much

we

To

A CSC

satisfy

up

Agriculture's

;

usfcd

granule fertilizer, made by

?

Keith Funston, President of the
York Stock
Exchange has
the

Merle

Wick

S.

Director

of

appointment

aqua

and

a

—

areas

and

are

wide

of chemical

such

of industries.

freeze

include ammonia,

includes both

line

private label and

already, being

range

Other basic products

patented

branded products

PEAK® ethylene glycol anti¬

as

and

Nor'way® methanol anti¬

freeze, Nor'way cooling system chem¬

methanol, ethyl alcohol, butanol, me-

anhy¬

icals

thylamines, formaldehyde and penta-

In addition, CSC produces

solutions,

in

new

Specialties

>

open

addition, last year CSC introduced

•*

erythritaK

Through fertilizer man-1

and

Peak

automotive

Nitro

Fuel,

a

In

specialties.

new

special fuel

for

make every acre more

markets,Qiiixol® and QqakerspJ®, pro¬

Products made for
tors include

pxo.ductive,.,,

racing

cars.

For home

CSC

use,

prietary brands of denatured alcohol.

pesticide formula-^

Dilan®, ethyl formate and

metaldehyde.
JWWMWWAPAP.VAV.NV.NV.V.V.V.V.V.NNNNNS.NNW'X^X^X^'WNNNW.VANNV.NW.

of

Assistant

as

the

a

new-

Automotive
CSC's automotive

ufacturers, these products go to help

New

announced

dynamic,

opportunity

drous ammonia.

Appointed
By N. Y. Stock Exch.

big-tonnage

development, the "NP's"

appetite for nitrogen plant food, CSC;

nitrogen

M. S. Wick

-

2-nitropropane, and derivatives.

supplies Hi-D Ammonium Nitrate,
CSC process.

and

the next 24 years.

ily of chemicals, the Nitroparaffins

nitromethane, nitroethane, 1-nitropro*

prefer to let prices rip whenever
we happen to be trying to do too

of

Department

vww.vw:.vwsv.y.v.y.

Stork List, effective immediately.
Mr. Wick, 43, joined the Ex¬
•

change from the Columbia Broad casting System Where he was Ad¬
„

ministrative

Vice-President

of

a

manufacturing division. He was
formerly "Chief Accountant of the
South ;American

Company and later

Development

with the
accounting firm of Lybrand, Ross
Brothers & Montgomery. He is a
certified

was

public accountant and

a

member of the American Institute
of Certified

Mr.
and

Public Accountants.

Wick,

his

Elizabeth

wife

Pharmaceutical Chemicals

three children, Beverly, Bar¬

bara end Patricia, reside

in Man-

Newest antibiotic produced by CSC is

hasset, L. I.„f

cycloserine— used in the treatment:

Potable

ASE 5 & 20 Club
The

American

members'

Five and Twenty Club
held its annual dinner and instal¬
lation of officers Jan.
15, 1957.
Leonard C. Greene, Chairman of
the Club's entertainment commit¬

tee, announced that 14
bers

had

been

new mem¬

admitted

to mem¬

bership in this organization which
is composed of American Stock
Exchange brokers who have main¬
tained membership in that Ex¬
change for 25 years or more.
Harold

of tuberculosis. CSC is also

Spirits

manufacturer

Exchange

Stock

CSC's oldest line of products is the
Rossville®

brand

of

alcohols, which

-a

exclusively on order and are
in

bulk

as

of unexcelled

antibiotic
ments that

production of whiskies

Chief
:?

S
'.NV.V&

Brown,
of Brown,
Kiernan & Co., was elected to the
organization's presidency.

—

W. Ireland is
engaging in a

ties

business

from

offices

Charles
in

name of

Ireland & Company.

formerly

Florida Investors, Inc.




with
,

them under their

animal

own

label.

.V.V.V.V.V.V.V.V.V.V. WWVWWWm»WW>WM*M»lll>>w«"

nutrition

supplements,

vitamin

B.Y-16®

and
Plants at

supplements, multi¬

supplements, choline chloride

Sterlington and Harvey, La.

butyl fermentation solubles.

Terre Haute, Ind.

Peoria, III.

?,v.Wiv,v.VAW«.v.v.vx^.v»y^w/«*x«>>:o»X'W^^wv,w;.wv/MVi*.svvMvw.,i

•

Agnew, Calif.

Newark, N. J.

Principal Cities

the

Building under the firm

was

supple¬

securi¬

Knowel

Ireland

these

B.Y-21® riboflavin

in

feed

supplied to

help produce better broil¬

among

biotic

and

WINTER PARK, Fla.

vitamin

are

products are Baciferm® bacitracin anti¬

Sales Offices

•

and

All CSC drugs

pharmaceutical companies who market

laying hens, turkeys and hogs.

ers,

quality.

J.

Forms Ireland Co.

was

to produce this anti¬

drug field. Other products include anti-

supplies the feed industry with

grain neutral spirits as

custom

leading

and

Crystalline riboflavin (vitamin

enzymes.

CSC

only. Products include

fine cane and

well

biotic.

Animal Nutrition Products

CSC potable spirits are pro¬

duced

sold

*r^y\j

a

B2) is another item important to the

ville, Indiana, distillery started in 1847.

Today,

bacitracin

ef

the first company

their ancestry back to a Ross¬

trace

Mr.

COMMERCIAL
^General

Offices:

CORPORATIO

SOLVENTS

260

the state;

banks

General

and

Canada's

on

:

and Secretary-Treasurer, E. Henry

in the
thoughts of Canadians during the
past year has been the Royal
;

,

holds

independent meetings to

own,

foster cooperation among

Secretary-Treasurer of

the

in
,

of

associations, for both commercial'

securities Powell,

a

:

Each

were

the Vermont Bankers Association;

SAN RAFAEL, Calif.—James P.
Stuart

Island, Vermont and Vir¬

ginia.

Vice-President, Charles E. Burns, its

J. P. Stuart

Eastern

Eastern

the

the

Other

ar¬

Exchange.

of

Conference

{Secretaries

Asso¬

charge of the

President

named

two-day meet¬

by

The

includes the States of Con¬

group

the Pennsylvania - Bankers Asso¬ necticut,
Delaware,
District
of.
problems ciation, Harrisburg, has just been Columbia, Maine, Maryland, Mas¬

luncheon

Governors

Western.

and

tral

Daniels, Secretary of

con¬

Eastern, Southern, Cen¬

New

outside

regarding

a

L.

Section

into four

is divided

ferences:

State Association Section of the
Midwest American Bankers Association.
Stock Exchange oh Jan. 25.

the

moderation at times like the pres¬

will be

the

ring -of rangements.
•
dependable and abiding value, and
The Association of Stock Ex¬
sound prosperity go hand in hand.
change Firms is a national trade
By exercising adaptability and
a

v

A feature of the

Jay N.

the

located

City

Belden

Association

State

of ABA

Elects Officers

facing the investment business.

Whipple of Bacon, Whipple & Co.,

Sound

and

Bros.

permit

tunity of conferring directly with

York

The

ABA Division

country

the Board of Governors the oppor¬

of the

ing at the

chasing power of the dollar.

the

several times each year to

Meet in Chicago

Growth Depends Upon

financial

in

held

are

throughout

Madison

Ave.,

First
C

New

York

16,

N

.

Y.

1

Chronicle

Commercial and Financial

The

62

Thursday, January 17, 1957

...

(258)

\

■

which 103,000,000

later shipment as single
concentrate to all sections
of the country.
The frozen citrus concentrate industry
in Florida has had remarkable growth, and increased
production of frozen concentrate for 1957 is forecast.
While economic conditions in the southeast for 1957
may
be generally regarded as favorable (barring a
drastic deterioration in the international situation), there
are a
few weak spots.
The textile industry has been
faced with over-production, but conditions in that indus¬
try are showing some improvement. - The same is true in

plants within the state, for
strength juice and /or frozen

It is also

Almost

19564—

America

in

companies

premium
holders.

$4

,

-

-

Federal

income
rate for.

in

various

the

$10,200,000
than

needs

$2,800,000 in premium taxes
States. The total of

1956 and
to

the

25%

turned

equivalent

is

-

more
of the entire amount re-

imum
Louis

W.

service

business

as.

Year

The

Total

$271

the
Harry' A.

"

;

DeiJutts

great

the

to

has

should

of

years.

continue

can

months.

So

when

of

our

we

ahead,

to the year

we

in

progress

its

be done if laws govern- '

be done and will

to

the

of

cost

various

providing

types

of

158

335

an

189

378

*263

*483

Middle

%

combined

State taxes

extremely heavy burden to be levied
against a business that is dedicated to thrift and family
protection.
The Federal income tax as it is now applied to mutual
an

are

life insurance companies does not follow established tax

either

principles
porations

to

or

applied to ordinary business cor¬
savings institutions. Rather it

as

mutual

is the outcome of

an

artificial method intended originally

to

safeguard the solvency of life insurance companies,
by decreeing that investment income needed to main¬
tain reserves should not be taxed.
The balance, it was
concluded

at that time, should be subject to Federal
tax, at corporate tax rates.
Because of changed conditions and constantly raised

income

.

rates of tax, the existing method has produced an unfair
tax burden on life insurance policyholders.
The result

today is that the income

policyholder

a

earns

in

of

to

in

brings with it

in

other

areas

no

companies operating under the mutual
corporations operated for a profit. They

They

true

are

mutuals—that

is,

groups of individuals banded

together to provide them¬
selves with security for their families.
and

earn

no

profits,

all

taxes

levied

on

that

they

no

them

income and many others earn

so

percent

of

the

are

United States have life insurance

ownership represents

an average

popula+ion

comes

who

cannot

afford

even

bank

a

graphic

arts."

try's history.

of

S.

Dively

This

In the final

other

over




to

a

Most business manag¬

exercise good judgment and restraint
in keeping inventories in

and

active.

:

our

in

each

year.

new

rec¬

System is building today for 1957,

continuing high level, of employment and
income, the U. S. is evolving more and more

Advertising is

a

operating companies com¬

new

one-and-a-half

generating capacity, or

times

major key

stimulating this consumption and is particularly im¬
portant during competitive times, such as we are now

the

was

In

a

comfortable reserve

peak load of 1,831,000 kilowatts.

vigorous construction prograrps of the

past few

keeping with the tempo of the economy

in

power

the
an¬

installed/raising owned capacity to

1956 adjusted

in

of

1955

capacity

at the end of World War II.

unit

were

the

our

forecasts of future demands

territory.

Likewise, our currently
planned construction program, which encompasses larger
and

with

still
our

efficient

more

generating units, is in keeping

optimism for the future of

our

service area.

In 1957 New Orleans Public
Service Inc. will

installation of
lowed

by

a

a

102,000-kilowatt unit.

210,000-kilowatt

unit

to

complete

This will
be

be fol¬

by

installed

Louisiana Power &
Light Company in 1958 and a 230,000kilowatt unit to be

completed by Mississippi

Light

the

consumption economy.

South

of the Middle South and
for

Printing and Publishing

into

new

The

account

analysis, the tax bill on mutual life insur¬
companies in the United States is
disproportionately
increasing the cost to individual policyholders of their

ance

established

2,160,000 kilowatts, and providing

barring serious international complications, the last half

With

than

years

line,

personal

Middle

entire System

are

saving a little money and protecting their families
through life insurance. Yet life insurance is taxed more
heavily than any other form of saving.

be

question of by what degree the
surpass those of the previous year.

will

more

business

of 1957 should continue
very

of Louisiana and

a

In 1953 and 1954 the
System

strength about midyear.
However, if businessmen continue to
G.

will

revenues

,

pleted 775,000 kilowatts of

and economists appear confident
that the high level of business will
hold, but that there may be a test

of The.

South

years.

broad

ers

policies.

small

of

Middle

the

Qzarks of Arkansas

the river deltas

and the other years
ahead, with the same optimism that
has prevailed, and has been
justified, for the past 10

Board,

The" new year is starting at the
highest economic level in the coun¬

The present
protection of $6,900 per

a

the

General Business

little

family, with the individual policy averaging $2,720.
Life insurance is the only form of
saving chosen by
millions of Americans.
Many people with modest in¬

of

a

and

The

DIVELY

Seybold- itself.

the basig of ability to

entire

S.

Chairman

year's

thought

New
Orleans
Public
Service
Inc.,
development with its own growth.
It is
question of whether new highs in energy

this

Rather, it is

■<

statement,
therefore, covers the outlook from
three viewpoints:
general business,
printing and publishing, and Harris-

pay.

Sixty-three

and

"the

are

on

'

sales

variety of equipment
supplies for the printing and publishing industry,
Harris-Seybold's view of the year ahead must take into
account both general business factors, and factors with
special meaning to our customers in

tax.

hind the income tax—taxation

life.

the

proper

The
Middle South System,
con¬
sisting of Arkansas Power* & Light
Co., Louisiana Power & Light Co.,'
Mississippi Power & Light Co., and

Dixon

i-a.

longer

no

and

not even subject to the regular personal
Application of the corporate tax rate to
any part of their savings violates the basic princinle be¬
income

Lugar

mirrors

national

economic

manufacturer

paid directly and completely by their policyholders. Most
of the 103,000,000 Americans who own life insurance
earn
modest incomes.
Many of them are women and
children with

our

and

1957
a

Utilities, Inc.
we consider

Mississippi—the people have seem
opportunity and accepted the
challenge. The area's latent strength*
and potential wealth is beiiig devel-1
oped by Unparalleled endeavor.

does if 1957

Ilarris-Seybold Company
a

Since mutual insurance companies have no stockhold¬
ers

of

President

As

stockholders.

a

GEORGE

earns.

Life insurance
have

revised

now

as

the-

ords

sub¬

a

surance.

not

to

industry and busi¬
it

for

seems

Everywhere in

transportation policy
that allows the same competitive forces freedom to act
on transportation costs that are now allowed to
operate

Continuation of this artifical method imposes a dis¬
proportionate penalty on thrift through mutual life in¬

are

serve

the region even better than

it

states—from the

that far.

The Southern will be able to

native

repeat.

this paper work

Development of Southern's capacity to serve the South";
has kept pace with the needs of its territory:
It will
continue to keep pace with the still rapidly expanding economic importance of the South. Nineteen fifty-seven
will be a very good year in the South. v
ness

outlook

beyond,

is the same as that pains¬
takingly worked out with pencil or pen in^the last years
of the 19th century.
And it is the same because the
philosophy of Federal transportation regulation currently
hampering full development of railroad capacity dates
back

lifetime,

1949.•„ And-now,

the

through

his mutual life insurance policy is being taxed at
stantially higher rate than any other income he

plan

Deupree

k.

Utilities, Inc.

South

mation of Middle South

•'

;

II, Electronic Data Processing Machine. Latest,
largest and fastest of its breed, it will race through
paper work at lightning speed. <
•
Some

and

Kiciiard

an

.

,

Federal

kind of

"Seldom in the experience of a
rich in natural resources and

Model

current

feel confident-

this

are a people,
talents, given
such 'an opportunity and such a challenge."
"
•• We expressed this sentiment shortly before the for-

.so

lack of realism can perhaps be
ivn this wav. On Dec. 6, 1956, Southern placed
accounting headquarters in Atlanta, Qa.,
"electronic brain" known officially as the IBM 705,

*220

that

forward

EDGAH H. DIXON

•

President,

present-day

189

seen

look

modernized to permit the

are

in service at its

177

be

/

increased

an

on

basis, certainly for the next twelve

•Estimated

It

is

backlog
of
purchasing
power there is little doubt that the
general
economy
of
the -country

y

users

few

last

an amount
increased over
With this tre¬

deal more,

steadily

mendous

nointed out

302

141

161

ever
a

which

.

(OffO.OOO)

-

-

$146

1953———

,

$125

(<(00,000)

1952

than

service.

Income Taxes

Premiums

the
clothing, and shelter
before
in history; they

food,

railroads to price freight transportation realistically with
reference

l-'cdcral Corporate

St" te Taxes

costs

more

economy.

ing transportation agencies

the

past five years:
on

at'minimum

of

have

that

advantages

More could

the life insurance

whole, here's the way taxes have increased over

a

.

today " have

people

Dawson.

1949.

For

cost

service..

greater than the tax paid as recently
as

American

money to spend over and above

possible, it is already doing what it can to render max¬

MONY alone is paying av
tax bill five times-v

income

Federal

the

Procter &

looking ahead no one can fail
impressed by the fact that the

In

t.r y

u s

Board, The

Gamble Company

Southern, like its sister railroads throughout the
nation, stands ready to price its product—transportation
•^competitively as soon as .this is allowed. To the extent

policyholders in premium
(dividends) by this mutual x

company.

d

n

DEUPREE

R.

R.

The

to

refunds

I

•

.

Chairman of the

to be

will be
.afforded through allowing competi-'
tive forces to operate in the field of
freight transportation.

to

in Cleveland.

charges

Eisenhower.

°

:

Instead,

American

All

.

President

corporate tax

$7,400,000
at

•

/

these "competitive"

State

out

Mutual of New York alone is pay-

'

the

not

intended to assure
carriers a profit.
industry should
make 1957 a year in which to get
behind
the * program
to modernize
transportation laws recommended to
the Congress after intensive study by
a
cabinet committee, appointed
by
freight

taxes

of each $100 ofdeposits made by policy1
"
r
•-

consuming

has

they will be shackled by outmoded ;
laws requiring them to protect other
transportation agencies in unrealistic

The total tax bill of $483,000,000 means

premium taxes.

is

industry

,

look for a good year in 1957.
Harris-Seybold will continue to emphasize broader cus¬
tomer Services, through further expansion and technical
training of its sales ahd service organization. From the
longer viewpbint, we plan increased emphasis on our
research and development program,'which is now being
centralized for the entire company in expanded facilities

in industry
wholesale and retail trades: will be in full

the

Ilarris-Seybokl

-

.

As to this company, we

indicates that competitive forces

fault of American railroads.

DAWSON

insurance

V

operation to the benefit of. ultimate consumers.
That this will not be true of the
"

that Federal and State taxes are now

taxes

in

and

President, Mutual of New York

life

/

prediction for 1957 that the writer

every

seen

transportation

will pay an esimated $263,000,000 corporate income
to the Federal Government and $220,000,000 in

ing

far

so

be needed.

the

<

President, Southern Railway System

products.

its program of modernizing
physical plant anticipating that busi¬
ness activity in the southeast during 1957 will be at a
high level and expanded transportation facilities will

1956

productive equipment to keep pace with increases in
wages and prices, all point to comparatively high volume
and greater efficiency for progressive graphic arts com¬
panies.
V
•
*.
"
•

Line is continuing

LOUIS W

taxation.

HARRY A. DEBUTTS

and improving its

For

thrift by excessive

on

printing runs, and the trend to more

color growth, longer

economists and
spokesmen for the administration. It should result in
closer examination of the penalties currently imposed
becoming increasingly recognized by

is

still ranks as a
the railroads and is a pri¬
mary source of employment.
Competitive products pose
a
problem to both of those industries but producers
anticipate that the year 1957 will bring improvement in
Coast

interested in pre¬

should take an inter¬
est. Recent tight money has demonstrated the need for
encouraging private savings, since in the last analysis,
the growth of an economy and the price it must pay for
the use of money are related to the savings, process. This

serving the private savings process

major revenue producer for

demand for textile and for lumber

experiencing to an increasing degree. Printed advertis¬
ing has been growing at a rate more than double A
national economy. The graphic arts industry has been
benefiting directly from this growth, and should con¬
tinue to do so next year and the years ahead. As a manu¬
facturer of equipment and supplies for many segments
oi the industry—including printers, lithographers, maga¬
zine and book publishers, carton manufacturers, paper
mills, metal container producers, envelope makers, trade
binders and paper converters—we feel that our custom¬
ers have
good prospects for 1957. Advertising growth,

in

personal interest,

in which all of those

one

one

and their

life insurance, policyholders

families should take a

which, however,

industry,

lumber

the

The matter is therefore

protection.

insurance

60

Continued from page

Company in

Mississippi unit, the
the

1959

at

a

cost

cost of which

company's total capitalization

exemplifies

our

of

$25

will be
as

System's growth and

Power &

million.

The

greater than

recently

as

1945,

progress.

Continued

on

page

64

Numbei o604

185

Volumo

.

.The Commercial

.

and Financial Chronicle

'Net

Cenlral Republic Co.

Dyer Renominated By
Am. S. E. Gov. Board

Opens Kansas City Br. Debentures Offered

Dyer, stock specialist
OMAHA, Neb.—Central Repub¬
and
American Stock .< Exchange, lic Company announces • that the
member for the past 28 years, was * opening of a new office on Jan. 7,
renominated^ for • .the ^ office of 1957, in Kansas City, Mo., under
Chairman of the market's, board ; the supervision of Edwin M. ChapJames R.

:

of

Nominating, Committee according
to an announcement by Edward
T. McCprmickj
Exchange Presi¬
dent. .Tl^o post will
the annual election
'i'-*

1957'.

in

the

Feb., 11, offices. T
" t
•-

■■

Omaha

_

and

tvV''

*

■

Chicago

"

v

(H

Nominating r - Committee, headed1 by* Alf red *, ji McDerrhott,
The

With Brainardr Judd

;

five regular members

^lsp named

?■

y

HARTFORD, Conn.

—

r

John B;

three year board terms,; four sO'Brien is. now connected with
non-regular; •members,r -also,,^ for
Brainard, Judd & Co., 75 Pearl
three year terms, one non-regular
Street.
."*•
member for. a one*.year term and
two, trustees, of the gratuity fund
for three year terms. ? '
■
" '
1
Mr. Dyer," who was- born and
raised • in New York City, began

lor

Corp.

is

common

stock held of record Jan,

10, 1957.

,

f

n

Power

r

be. filled at
on

Moha\vk

offering to holders of its com¬
mon, stock, rights to subscribe for
$465224,£00 :• of 4%%
convertible
debenture-s, due Feb. 1, 1972, at a
line, Room 531, Railway Exchange
subscription price of $100 for each
Building, 7th and Walnut Streets,
$ J 00 of debentures, on the basis
telephone. Grand 1-5809.' '•„
^ ef $100 principal amount of de¬
Mr. Chapline has been with the
bentures for each 25 shares of
firm

by-the-exchange's

governors

Niagara

Subscription rights will

expire at 3:30
28*, 1957.

Harriman

,

-

-

•

-

,

manager

of

(EST)

p.m.

-'.-V

'

<

on
-

Jan.
•

investment

a

northern

the

kill

the

bank

debentures

company's*

construction

into

through Feb. 1, 1972, un¬
less called for previous redemp¬
tion, at $31.75 per share. The de¬
will

bentures

be

redeemable,

at

extending from the Niagara

Frontier to the Hudson River Val¬

ley

demption

-

;

Niagara

electric

renders

in

in

Power Corp.

Mohawk

New

foothills

mountain
and

border

the southwest.

on

cities

served

tural gas

^

and

the

12

wholly-owned

of

member

a

York

.Curb

the "old

Exchange

elected to partnership

Dyer.
He

1946

has

and

the market's

State

having

income of

$29,349,000.

K|?x'X"X^.•'■••>;

•
KW.'w.'.v.v.'

was

in

1947,

1951

of

and

terms

year

In 1952

1954.

elected Vice-Chairman

was

the

of

in

most

principal committees.

elected to three

He

Dyer

was

Governors

He

board.

became

Board

Chairman in 1956. Dyer is a mem¬
ber

the

of

New

York

Athletic

Club, The Friendly Sons of Saint
Patrick, The Cardinal's Committee
of the Laity for Catholic Charities
the Diocese

in

the

New

of

York

Stock

American

and

Exchange

Five

& Twenty Club.
Nominated as regular

>

for

governors
were

three

a

Leonard

I.

A pfcO^u&M simple- <*notigh to state

Bregman,

impossible to solve:

term

Breg¬

W.
E.

Robert

Co.,

&

♦

Laidlaw

Laidlaw,

the. sir# tosphere;

Co.,

&

l|ot'CO|ribimtion.r Aatto jot wotm-up Mb

a

air temperature plummets

and William N. M ox ley,

it

Shearson,
Hammill & Co. Bregman & Hal¬
den

served

past.

Board

af much Kastbree

the

in

Kimm, Laidlaw and Moxley

nominees for the first time,

are

Named

I

the

on

seemed'

rovvod-up jot m iM

a

tropical atoll tonway. ready bo takaai;That*o

Charles
Halden, Haldeii & Co., Walter;'
Kimm,Jr., Kimm. & Co., J.
Cummings

man,

-*•

member

year

houdred degrees^ No tboo-

imtmg lubricant could stand the gafl. Needed

v

non-regular member
governors'for a:-three year term
as

—♦

#

mwMtid of lubricant.*

where John. J.

Miles, Jr.,'Adriance
Finn,, Winfield
H.
Perdun,
& Co., Paul Porzelt, Emannal, Deetjen & Co., and
Harold A. Rousselot, F. I. duPont
&

Smith' Barney

& Co. Miles and Rousselot served

the Board in the past.

on

and

Porzelt

are

Perdun
the

nominees for

developed and tested several hundred dider-

first time.

Nominated
member

term

was

as

governor

a

non-regular'

for

John Brick,

a

one

ent lubrkants ^

year

*-V;-

Paine Web¬

em

ber, Jackson & Curtis. This is his.
first
•i

came up

with the answer

lubricant'that functioned perfectly

throughout terrific temperature change**

nomination.

Timothy J.

Andrews,
Posner & Rothschild, and Robert
J. Smith, Sexton & Smith were

,

Reardon,

••;

x

TMs Is Just

qm more

example of

a

tough

^l^muhproduct- development solved in the

nominated to three.year terms as
trustees of the Gratuity Fund.

Ifeco

Besearch Centers.
'

Serving with McDermott on the
Nominating Committee were Carl
F. Cushing, W. E. Burnett & Co.,

'
-

--

-

jm wx^pOMAuy

William P. S. Earle,. Jr., Koerner
Co.^ and -James A. Herman-as
regular members and William E.
,

&

Dugan, Laidlaw & Co., N. Leonard .
Jarvls, Hay den,. Stone & Co:, andr
Laurence B.'. Rossbach, Bache &Co.

as

non-regular members." L

-

"

*

"

**

*

Alan
-

■

>"

"

**

Company Formed
Joseph;-

MIAMI BEACH, Fla.

■MMmm

—r

Applebaum

is engaging in a secu¬
rities business from offices at 411

71st
of

Street

under

the

firm

name

The Alan Company.

Jay Kaufmann Branch
BALTIMORE, Md. —Jay W.
Kaufmann & Co. have opened a
branch offioe at 225 East Redwood
Street
under
the
direction
of
Donald Cole.

'




Od

iti

Jbad

and consolidated net

York

in Dates &

served .on

and

operating revenues of

first elected to the Ex¬

Board, of

change's

York.

$243,274,000

-

was

centra^

consolidated

New

and

Troy*

the

to

partner, in 1928.

came

in

subsidiaries

with whom, his father was.
In 1929 he be¬

Dyer
a

areas

company

He became a salaried
employeefor
Dates
&

market

Schen¬

and

ended

Shearson, Hammill &
Co. in 1927 following the receipt
of a BA degree from Manhat+an
College.

Utica,

Princi¬

Buffalo;

months

for

clerk

i

New

,

his Wall" Street career as an order

are

eastern

the

1956,

the

also distributes na¬

in three

northern

31,

Cats-

on

Pennsylvania

Falls

Niagara

The company

For

the

Albany,

Syracuse,
ectady,

State's

York

industrialized

service

highly

New

boundaries to the

southeast

prices

105% to par,
•

ranging
from
plus accrued interest.

from

and

the ootion of the company, at re¬

areas

•

the

of

stock

common

000,

pal

company

ing

«

program.

The debentures will be convert¬
ible

public^

offering.

pro¬

company's
treasury and to finance in part its

ing. syndicate which is underwrit¬
the

construction

gram; to reimburse the

*

Ripley & Co., Inc. is
an

total population of about 3,209,-

proceeds'from the sale of
will be used, for
the payment of $30,000,000 princi¬
pal amount of short-term bank
loans incurred in connection with

Niagara Mohawk Pwr,

Texaco Research^-

kv! always ahead

TEX&CO

The

64

quarter of a million people, more
Commonwealth's population.

President, National Bank of Commerce,

DODD

E.

WILLARD

Lincoln, Nebraska

President, Knott Hotels Corporation

in room occupancy each month

The continuous increase

1955 is perhaps the outstanding factor in

since October

making

be

to

pear

forecast

a

any

There does not ap¬
lessening in the demand for roomsx^
especially in the larger cities. I refer
to the future.

as

particularly

farmers to

don, England.
Our profits from operations for the
nine months ended Sept. 30, 1956 in¬

farmers

maintained

add

which are

year

Based

results

the

on

several years ago, has proven to be of considerable ben¬
efit in the building up of our net income. The addition
of

motels, which show a much larger percentage of re¬
on
invested capital than do most hotels, has con¬

turn

vinced

officers

our

directors

and

that

selection

the

of

proper sites, affording good accommodations will con¬
tinue to be an excellent source of income, especially in

cities

small

near

or

with

those

and

second

but

grade

hotels.

Food and beverage sales have

in the

not increased

the overall gain being
the profits
that were earned in 1955. In this department, labor costs
have risen1 to the point where the profit cannot be main¬
tained without increasing menu prices.

same

proportion

but 4%.

as

has the

Most restaurants

rooms,

not producing

are

This hasmot been found feasible because of keen

.

com¬

petition and the fact that manv large companies, have
in-plant feeding facilities for employees thus
the number of potential customers.

instituted

In several of

hotels,

our

new

banquet and bar facilities
means

a

of

increasing

profits in those particular locations.
'

From

indications,

present

level of

room

tinue for

time

would

that

appear

established in 1956 would

occupancy

some

it

and

perhaps

stances. For this reason, I do not

improve

in

the

in

maintain

for the year had

mates

increase

in

RAFAEL

November

the

to

end

for

1955.

an

expanded

The oil

a

all

of

its

of $5.6

of the

have

a

single
In

of

activities,

it

in

is expected

those

operations
the

of

are

Dunlop

Because

of

of

this

pace

all-time high

an

roughly 8%>.

Company will continue

expansion and

is based

on

economic

modernization

number

New

of

for

records

the assumption of

a

planned for

1957.

in

many.

refining

tion

no

the

longer

world.

$2,360.

averaged

a

In

"poor" country rela¬
1956 total net

During

reached

$1

billion

and

millions

a

balanced

economy.

1956, income from industry for the first time surpassed

income from

agriculture, pointing the direction of Puerto

Third, Puerto Rico is appealing to larger, better known
U. S. investors.
This year more than
100 U. S. firms
established operations in the Commonwealth. In this list
two trends were evident: toward
bigger capital invest¬
ment, toward wider product diversification. Examples of

of

areas

doldrums

on

Rafael

It has

these trends: Union Carbide's new $28,000,000 ethylene
glycol facility, three divisions of General Electric with

Durand

now

through

then

is

to

what

distribute

effectively

backed

up

is

of

over

$15,000,000; $60,000,000 worth of

oil refineries.

Fourth, Puerto Rico has strengthened its political and
ties with the United States.
In the guberna¬
torial elections of November,
1956, over 60% of the elec¬

-economic

torate voted

essentially
resulting

and

the

for

continuance of Commonwealth status

a

nearly 90% voted for

associa¬

permanent political

a

tion with the United States.

possible.

as

investment

an

new

by

But it has also

On

a

tinued
..

strong strictly
bigger income pie

very

a

access

to the

near¬

Federal taxes, no Puerto Rican taxes
sizeable wage differential, a democratic
which dishonesty and corrup¬

this program worked
have

we

out?

total of just

under 450 "bootstrap"
plants, about three-quarters of them U. S. owned. In¬
cluding such household names as Remington Rand, Gen¬
eral Electric,
Paper-Mate, Consolidated Cigar, Sylvania
and Beaunit
Mills, these new factories today manufacture

and

tributed

in

Moreover,
i

a

$100,000,000 worth of products,

over

expansion of Company markets account for the
largest portion of the expected capital
expenditures.

•

.»

■*

'

the

states.

the

; u ■«

the
to

front,

dividends

"Operation

.

Bootstrap"

con¬

not

only for manufacturers in
producers selling to Puerto
With increased standards o?
living, Puerto Ricans

Puerto

Rico.

economic

■

-

pay

Rico

but

for

U.

S.

have

continued to spend around 50 Scents out of every
new dollar for U.
S.-shipped products. :JToday, with per
-capita stateside purchases of $240,\ the Puerto Rican is
the biggest per
capita customer of U
goods and serv¬
ices in the world.

During
forward

17

\%A V

"

years

j;

Bool^irap"-has marched

"Operation

with

ever-lengthening steps, and predictions
have usually, fallen short of the mark.
Nonetheless, let me just make a brief prognosis as to

along the

way

Puerto Rico and

the immediate future:

no

government in

has

family

addition,

Second, Puerto Rico has reached
In

unknown.

are

How

market¬

facilities,

of

rest

the first time

U. S.

Among them: tariff-free

decade,

a

sums

planning

continued high level of

multi-grade system of

of

for

program,

by U. S. market,
for

normal




economic

To date

modernization

also

underdeveloped

public education.

were

ing gasoline throughout its 19-state
marketing territory,
new
exploration and drilling ventures in the western

hemisphere,

countries

Puerto Rico's economic development
program is in a
practical sense—10 years old. For in 1947 the first In¬
dustrial Incentives Act was written, with the
purpose of
interesting manufacturers, and particularly U. S. manu¬
facturers, in production in Puerto Rico. The attractions

activity.

The extension of Sun's

about Puerto Rico in

Rico's future.

and

and stable

Its

say

manufacturing
wages averaged
around $0.65 an hour, higher than in
most longer-industrialized countries like Germany, Great
Britain, Italy and France, although still lower than the

economic side—designed to create a
for Puerto Rico, not just distribute it more
fairly. It is
with this effort to raise Puerto Rico's standard of
living
that I want to deal particularly.

1957.

to spend record
in

income

Four"

many
basically social
road-building, hospitals and sanitation, rural
electrification, land reform and particularly all levels

thaj, in 1*956

record

the

the

to

income for

programs:

earnings in 1956 surpassed 1955, placing
industry in a stronger financial position to carry out
Oil

First, Puerto Rico is
tive

part of

in

we

,

capital expenditures will

programs

60

can

the year 1956? Let me cite only four developments:

the

not isolated events.

"Bootstrap"

of progress.

extensive expansion

are

benefits hs widely and

company

Sun
for

by

representing

self-help

a

industry will face stiff competition just in keeping

Oil

the

1956

that

during

when placed beside such happenings as the turmoil in
Egypt and the trouble in Hungary.
- \
"Bootstrap" goes back 16 years to 1940. Designed by
Munoz Marin, then President of the Puerto Rican
Senate,
it has perhaps two central aims: to lift Puerto
Rico out

also predicted, and every
company within

step with the

the

drilled—a

"Point

both sides of the Iron Curtain.

year.

1957,

exceed

were

thousand

a

particularly important meaning

industry's dynamic growth is the fact
wells

often

\

•

investors

the year just past represented

59,000

news

House" award for "demonstrat¬

people

billion, excluding lease bonus payments/Typical

almost

the

They
a pattern we call "Oper¬
Bootstrap."
It has important
meaning
for
profit-minded
U.
S.

expansion, capital expenditures by oil companies in the
U. S. in

in

ation

industry in 1956

phases

been

perspective, what then

third term.

are

G.

"The Common¬

represents: an

Viewed Irom this broad social, economic and political

*

Rico's
Governor,
Luis
Marin, received a 1956 "Free¬

These

Robert

months ago,

some

Rico

Puerto

experiment—the
perhaps the most notable of American gov¬
ernmental experiments in our lifetimes.". •
-

ing the effectiveness of democracy"
and was overwhelmingly elected to

export level at least double

that of 1956.

of

wealth

Puerto.
Munoz

emergency oil shipments for at least
the first six months of 1957 will re¬
sult in

tice Earl Warren said

of the world have visited the island.

above

Continuation

has

year.

observers

mid-

1956

Rico

Almost

of

of

is permanently safeguarded by.' the U. S.
Constitution, armed forces and Federal courts. r
'
'
-'Discussing'this unique political relationship Chief Jus¬

Big U. S. manufacturers like Union Carbide, General

an

pushed the year's exports 7%

customs area;

Electric and W. R. Grace have set up branch installations
in the Commonwealth.

Early esti¬

Europe from

own culture and language. At
time it is within the U. S. monetary postal and

same

.

DURAND

Development Administration of Puerto Rico

Emergency oil shipments from*the
to

the country, the pooling of thoughts

Continental Executive Director, Economic

will rise about 5%.

States

the

many

of many, will

in¬

4.5%.
For the coming year,
it appears now that domestic demand

United

over

opinions of

newest and

in¬

demand

,

Congress, its own laws, its

~ \

be of help to all businessmen.
I, personally, ldok forward to reading the opinions of
other men in business as it gives me excellent help in
planning for-ourselves and our customers.

Company

predicted

domestic

basis.

prosperous

people from all
-■and-ideas

about

those

a

The "Chronicle's'' idea of getting the

DUNLOP

1956

1955.

over

.

;

;

dom

demand

5.5%

f-

:■

.

in demand.

Domestic

%

When an unemployed worker gets a job, he spends or
opinion that Government bonds will go con¬
saves his new income, and commerce and banking have
about .September or October of
1957
come back to a profitable basis
both received tremendous impetus from industrialization.
where they can be traded in again.
In fiscal 1956 alone bank*deposits climbed 9% over the
New buildings and modern equipment have switched
'previous year to $336,000,000 and merchandise shipments
tremendous funds in every company from liquid assets
from the U. S. were up 10% to $550,000,000.
*
to frozen assets, and have put longer loans into banks
Industrialization has also gone a long way toward
and finance companies. It will take time to recover the
strengthening Puerto Rico's traditional bonds of friend¬
liquidity that is needed to make any business prosper.
ship with the continental United States.
In fact con¬
However, I do believe that by October of 1957 we will,
structive political change has closely paralleled economic
notice a change for the better in our money situation.
improvement. The culmination here came in 1952 when
Surely we have enough buildings and equipment to
Puerto Rico, after creating its own constitution, became
take care of future needs in production capacity with the
a Commonwealth voluntarily associated with the United
exception of a period of war;
I don't mean by that
States. The compact was ratified by.both the U. S. Conthat we won't continue to modernize ^ equipment and!
Tgress and the Puerto Rican people.
: *
" y;\'''
enlarge quarters—but not at the large scale we have,
!
Self-governing,,in- all internal affairs,^Puerto Rico has
witnessed over the last two op three years.- It is always
its own Constitution, its own elected Governor* its own
healthy " for business to modernize and improve and

1956, the United States oil industry supplied more
crude petroleum and products to more consumers than
in any previous year.
And in 1957, oil companies will
have to produce, transport, refine and market even more
oil to
keep pace with the steady

creased

the highest percentage

elementary school,

in

are

in Latin America."

lower, until
when they will

In

climb

dren

of at least

education takes

and today 80% of Puerto Rico's chil¬

added meaning,

on

It is my

hesitate to predict that,

Sun Oil

city of San Juan.

there is economic opportunity,

siderably

past

President,

smaller network of super-highways has begun to

a

When

con¬

some

>--.5;'.

Road-building has been stimulated to
network of highways cover the island

a

surround the capital

im¬

very

;

<■

industrialization have fanned out in
Electrification has been enormously en¬
of

population.

point where

a

and

is

outlook

portfolios should consist

Puerto

G.

rural

them

Governments regardless of the price.

50%

1956.

ROBERT

of

care

portant because of the price it puts
on
Government
bonds.
All
bank

byron Ounn

barring unforeseen incidents—1957 will be at least good
as

take

to

national

The

reducing

have been added and these will be

farm

directions.

all

-y

••

benefits

couraged and today extends to over half of Puerto Rico's

during their late years.

past

ings, augmented by units which will
be added in 1957, should be better
in the coming year.
Our
expansion
program
started

E. Dodd

their

why for the first

The

drouth

The

loans.

a

universities.

people who expect the income from

the

the

of

,

brings problems, especially to retired

I would predict that our earn¬

year

Willard

units during
in operation.

new

any

and

stand

irrigation wells,
out-state bankers

in

put

with

expense

Lodge at Williamsburg, Va., we did
not

since 1955, a $12,000,000 ammonia plant
$2,000,000 steel bar factory. You begin to under¬
time an industrial middle class
of managers and technicians is growing up in Puerto
Rico, why engineering and business administration have
become among the most popular courses in the island's

plants established

help the farmers cover this added

to

Motor

Pocahontas

the

than,

to

and have urged our

gain of 40% would
for the entire year.

dicated that our
be

companies have also come in under the program, many
of them large and flourishing.
Consider just two local

great degree, and while
some
industry which

helps, we don't'have enough to offset
the
spending we expect from our
farmers.
We have encouraged our

burgh, Washington, D. C., and Lon¬

Other

a

have

do

we

have brought employment and

Puerto Rico, but they have in addition brought
in industrial experience and know-how. Some 100 local
income to

my

.

Pitts-

York,

New

to

gazed into

branch companies

U. S.

crystal ball and have decided to
operate very cautiously during the coming year of 1957!
1 will watch, look and listen!
Our mid-west has (enjoyed) two years of drouth. This
has
affected
the spending
of our
I have

indirect to the economy and support to a
than a tenth of the

iobs direct or

DUNN

BYRON

62

Continued from page

;

Thursday, January 17, 1957

Financial Chronicle

Commercial and

(260)

new

•HU'V-

plants- have
" •'

most of them dis¬
"

.

* i

» J

•

Economy—Chronologically, Puerto Rico is perhaps a
century behind the United States in development, but in
less than a
single generation the island has gone a long
way toward closing the gap.
By 1962, the economic ac¬
tivity in Puerto Rico should reach the level of some of
the

Southern states.

Industrialization—New plants
next

about

.-vf.-1", -.-I ■*---•

five

years

"bootstrap"

factories

should read

a

,

added

there
in

should

now

r

f

». >i v -;

•

»■'

V.1**'.'"

be

a

establishing in
week.

more

a

Who's Who in American

Continued
• -r»

ft

r-r

•>.

f

■

Within
1,009
The list

than

the. Commonwealth.

good deal like

70,000
tit •'<

are

Puerto Rico at the rate of almost
three

the

4»1W-

}

on
fT

page

66
-

'

185

Volume

Number 5604

:

.

.

.

The Commercial

civil

Continued jrom page 25

rights.

and Financial Chronicle

That

in¬

program

cluded:

(1)

Stale of the Union

Message in Fall Text

of

-

bipartisan

a

commission to investigate asserted
violations of civil

(3)

neglected, a destroyer of both life
and wealth. There has been pre¬

pared and published a comprehen¬
sive water report developed by a
Cabinet Committee and relating to

of this particular prob¬

all phases
lem.

,

of

a

to

civil

rights
Department of

in

in

the

charge of

an

Assistant

Enactment by the Congress
laws to aid in the enforce¬

of

voting rights; and

Amendment of the laws

so

to permit the Federal Govern¬
ment to seek from the civil
courts
as

relief

in

civil

rights

cases.

this

light of this report, there
believe we should

two things I

keep constantly in

of

completely
legislation.
•

satisfactory

that the Congress enact

urge

legislation.

National

growth

should

gress

tion of

authorize

commission

a

qualified

citizens

to

policy
Con¬

the

crea¬

of able

and

undertake

vital

inquiry. Out of their
findings and recommendations the
Administration would develop

of

the

me

agencies,
transmit to the Congress recom¬
mendations involving our finan¬
cial and fiscal affairs, our military
and civil defenses; the adminis¬
tration of justice; our agricultural
economy;

our

domestic

we

our

legislation,

In

seek

is

a

system

of

well-adapted and efficient finan¬

this

purpose

that

I

affairs

seems

should

recommendations

domestic

it

message

necessary

of im¬

repeat

involving
that

un¬

have

our

been

A

the

development

of

oUr

natural resources; our

aspects
and

of

the

welfare

will,-be

labor laws,
labor-management

health,

of

our

special

with

dealing

and

vital

education

people. There

upon

the

Congress during

atomic

you

subjects

as

legislative

will

will

sums

as

also

should

needed

are

as

to

drainage

lesser

each

in

area

self-defeating or, at the
least, needlessly expensive.

;

The

existence

of

armed

continuing

is

second

the

that

can

The

domestic

a

world's and

dictatorship
threat to the

thus to

are

than

rapidly

more

certain

truths

to

lated, Cannot

alone

assure

Continued

Cyanamid Means.

our

The whole matter of
best

of

use

the

from

each

making the

drop
it

moment

of

water

touches

Better

soil until it reaches the oceans, for

such purposes

control,

irrigation, flood
production, and do¬
as

power

mestic and

industrial

Better

Better

our

Textiles

Drugs and

Plastics

Pharmaceuticals

clearly

uses

demands the closest kind of coop¬

eration

and

partnership

between

municipalities, States and the Fed¬
eral Government/ Through part¬
nership of Federal, state and lo¬
in these vast proj¬

cal authorities
ects

and

we

obtain

can

the

economy

efficiency of development and

operation that springs from a
sense of local responsibility.

lively

Until such partnership is
lished

on

a

estab¬

and logical ba¬

proper

sis of

sharing authority, responsi¬
bility and costs, our country will
have both the fully
of water that it

never

tive

produc¬

use

obvi¬

so

ously needs and protection against
disastrous flood.
If

fail in this,

we

tasks

that

America

only at

all the

to

need

could

excessive

an

many

be-done

be

in

accomplished
cost, by the

growth of

a
stifling bureaucracy,
eventually with a dangerous

and

degree of centralized control
our

over

national life.

In all domestic matters, I be¬
lieve that the people of the United
States will expect of us effective
action

to

remedy

failure in

past

meeting critical needs.
Urges
•

High

School

priority

the school
will

Legislation

should

children

given

be

construction

benefit

bill.

of

all

This
races

U

i

I ttn

throughout the country—and chil¬
dren of all

races

A program

gency

be

am

can

designed to meet

needs

should
I

need schools

for

enacted

hopeful

without

that

now.

emer¬

classrooms

more

this

delay.

program

be enacted

on its own merits,
uncomplicated by provisions deal¬

ing with the complex problems of
integration. I urge the people in
all sections of
the country to ap¬
proach
and

these

reason,

problems with calm
with mutual under¬

standing

and good will, and in the
American tradition of deep respect
for the
and

I

orderly
justice.

should

much

say

reason

Progress
mutual

our

processes

be

people

we

of

to

of

race

much

have

proud of the
making in

Rubber..

.

application of chemicals. Among others are—Metals... Food

Leather

.

.

.

Agricultural Chemicals

.

.

.

Petroleum

.

.

.

Surface

Coatings.... Explosives. For further information, call or write AMERICAN CYANAMID
COMPANY, 30 Rockefeller Plaza, New York 20, N. Y.

are

buttress of human and
the

goal

we

...

understanding—the

Steadily
ment

few of the many products Cyanamid is helping to improve through

of law

Paper

here that

to

■ These are just a

chemical research and the

chief
civil rights.

are

moving closer to
and equal treat¬
citizens without regard

or

fair

color.

remains

to

But

be

C FAiVAJVf I

unhappily

done.

Civil Rights Program
Last year
the

Administration

recommended to the Congress a
lour-point program to reinforce




HELPING

AMERICA

MAKE

BETTER

USE

OF

ITS

be

remem¬

4

First,. America

and

does

own'

bered here.

the furthering of

population.

our

nation's security and peace. There

industrial demands for water grow
far

-

strongly

a

imperialistic

poses

free

a

very

implement

Threats to World Peace

whole. Piecemeal operations with¬
be

That mes-;
such

the proposed action.

mind. The first

considered

be

,

recommend

is that each of our great river val¬

leys

recom¬

mentioned

be

within the week.

sage

recommendations
such

energy,

of

specifically
in
my
forthcoming;
Budget Message, which will reach

'

urged

citizens.

number

mendations

for¬

commerce; the urgently
needed
increase
in
our
postal

relations

the

financial machinery.

and

ef- f

continued

to
eliminate
government.
competition with the businesses of *

eign

including

for

our

heads

departments and

rates;

t

Monetary Commission

from

the

works,

-s

forts

tax-paying

•

or

and present to the Congress any
legislative proposals that might be

proving

public

The

indicated

preventive
I

which monetary and credit
takes effect. I believe the

this

Essential to the stable economic

.

In the
are

(4)

stage

directly from

new

ment

national, inquiry into the nature,
performance and adequacy of our

but which in
instances, did not reach the

economy and in terms of its func¬
tion
as
the mechanism
through

Justice

of

make special
mention of programs for making
the best uses of water, rapidly be¬
coming our most precious natural
resource, just as it can be, when
to

the past four years,

Creation

and

Attorney General;
Problem Steady

the

some

a

recommendations;'

projects.

like

believe

to conduct

Administration will,
through future messages
either

division

Water

I

broad

come

financial system, both in terms of
direct service
to
the
whole

private enterprise should be en¬
couraged to participate in such

would

institutions.

its

rights

make

(2)

X

cial

time has

Creation

■

.

65

(261)

RESOURCES

and

iso¬

its

own

even
on

page

67

(262)

,

\

'

,

.

64

Continued jrom page

••"

;

:
;

In terms of services, Puerto Rico should have
as favorable as any in the world.

idustry.

the

Tourism—With temperatures consistently

in the sev¬

that

culture

Spanish

mains

ber

World

and

controls
the

United

f

With both colonial and totalitarian

will

prove

of increasing

Governor Munoz

As

-

States

Marin

put

it in

money

so

We

are

know

importance.

wake

recent speech

riding the crest, but don't
wide it is... We have fulL">

how

looking for a new industrial frontier,
Latin American traditions, leaders
underdeveloped areas seeking an example of. selfc.evelopment in democracy, the laboratory of Puerto Rico
in

more

the

months

and

EATON

/

dated—transportation, iron

r

steel,

paint,

I

opportunities ahead.
Our

which

our

all of

stands

as

see

•

in

economy,

people share, and to

-ae
A
A.

9u^b°k ^or 9

rivncc TMoHrmol
Gross National

should

come

the

imagination of peoples around
globe, so that natibn after nation
looking to us not only for know-

is

how but also for investment

of: our

funds in their enterprises.
Barring
conceivable deterrent to steady continuation
brilliant economic progress could be insufficient

•credit.'

one

Unfortunately,

growth

corresponding expansion of-

our

banking system.

In my more than half a
century one the
business - scene, while I have been
constantly
thrilled by the transformation that the industrial
revo¬
lution has wrought in almost
every aspect of our daily
American

lives, I have been deeply puzzled that banking has: not
kept pace. Our economic growth suffered severe -set¬
1929.

the financial

In each case,

panics of 1907, 1914, 1921 ;and
stronger banking power would have

substantially alleviated'.if, not completely averted-the
ensuing industrial disasters. With our thousands

upon

thousands of small independent
a
few notable exceptions

banking units, all with
operating in relatively small

geographical compass,

have

we

will

been and

never

not

;

still

are

adequately prepared to meet all of our own domestic
requirements in boom times, nor to withstand the shocks

be

we

world,

are

well

as

ments of

assume

meet

the resources of the

!.east

dozen

a

the

the

role

of

privately

banks

increasing credit require¬

A capitalistic nation of the: size
United States ought to have at
owned

capable of loaning
single borrower. Legally

and

as

much

to

command

as

such

of these banks should be well
distributed

our

12

trom

are

we

from

largest banks

capital

each in

San

To create

on

and

A.

Increased

interest

as

well

This

Federal and state

States

.selves

as

our

the

is

'

T

TAri

*

L

A

i-»

intelligent

have

fo^ 1957

that the

arer

banks,,

outli
outlined,-will prosper:
dollar at toe end of 1957/

measures-as

.sound

more

a

policies

sensible

and

-

.

1

-

±

■

-

;

'

•

'

J;

ELLENDER

thinking of

•

rate

f

•%,>.

savines'

on

greatest

meet.it.squarely

now, when

high, then. American

lead the world to
unprecedented




and

If

our

private

the

D

Prices

tively

high

.for; lpost industrial
because of - three-year Wage

enterprise

prosperity.

'

.

contracts

and

further/ih-y]

the national debt and subject*

another

consumers-:to

wave,/of

v

E.

Tight credit policies should show veal effectiveness
in the months ahead to
bring about some readjustments
of economic patterns.
*'
: % -

G.

St.

*

.

<

-

on

situation,
particularly
the
East, If the United Nations,
conjunction with our State De¬
is

able

to

convince

the

saber-rattling fellows like Nasser,
Krushchev, Bulganin • and Molotov
that

we mean

plus
it

business, the U. S. S. R.,
satellites, will calm down.

its

Since
is

that

is

an

unknown

qnite evident

quantity,

jtod certain that

appropriations for defense and for¬
eign aid expenc itures will exceed
S50 billion.

be

good

G.

the

on

will

be

surface,

hand, if Nasser and his

ambitions, then

War!"

that

{Caesar.

our

State

determined

to

un¬

tremendously dan¬

inflationary dynamite.
their

but

gerous, because it will be filled with

Elara

sponsors

we

can

Napoleon,

can

avoid

Hitler,

see

the

On the other
the

futility of

so-called

"Last

Mussolini, and

Tojo
of their ways too late.)
It appears
Department and the United Nations are
get tough, which will act as a deterrent
error

to the warmongers.

.

•

Assuming that World War III will be avoided without
expenditures above mentioned then, our econ-

the vast

seen.

en e

'

••

scale

.

»

/

•

i

<

.

.

<

•

•

.

1

.

may

It is my frank and candid opinion at
all-out participation
in the Soil

unless

obtained, farmers
As for

our

look

can

squeezed income in

forward

to

this time
Bank is

another

of

year

1957.

American taxpayers, the prospect of

reduc¬

tions in either
personal, excise or corporate taxes is prac¬
tically non-existent. The new fiscal year will probably

bring

a substantial increase in our global spending spree;
there will be little, if
anything, left over in the way ot
surplus funds.
Even if there should be,
this money

must

first

go

national debt.

towards
I do

retiring

not believe

at

least

a

part

of

the

the nation should choose

.or that it can afford to increase the burden to be passed
to

on

our

possible

create

continued fictitious prosperity that

derneath
A.

Naturally, this will

,

..

A

result in reducing
productoin to some extent/ whether this reduction will
be sufficient to bring a rise in farm income remains to-

Middle

partment,

-y

%

y

Participation in the Soil Eank

that

f-'e interna¬

tional

in

-

effort to change this program at

any

;

:

.

.-

wholly

appear

'
,

In predicting what is
going to happen to. banking dur¬
ing the year cf 1957, several "ifs" must be used in the

forecast for any degree of
certainty.
The first "if"
depends almost

hot

,

this time would certainly.; be'-met by
a
Presidential
veto, which—at this writing—Congress would not overfide.

Savings Bank,

/

it ...does

support program;

ELAM

Louis, Missouri

,

rnitted to Secretary of Agriculture. Benson's sliding

.

A.

Unfortunately,

that any-immediate relief is in sight,
my iinmeuiaie ltMier is in sigui.
Administration
is. still
com-

-

.

i

recognized the

will

our

predicts will be i:ej'ar.'

escalator clauses.

to

faith in our-'

Increase

past
almost

looks

United

/ military spending will';

,

.•crease

raav

iosy predictions;"T L-';

spokesmen, : f fear/that -'
•px|).U!(|ed • foreign
assista,
^
/grams/ coupled^ with stepped--. up ,]
some ■

Inventory accumulations have been relatively high? o -l.t'oin-spiralling.pid.ees-than American
Credit demand for inventory will be less than in 1956.
y' ■£ig1'icultu|.'e.;/Still - squeezed between ;

a

businessmen.

challenge.

"the'America./peo^
American'.people.^Despite

of the
o

B.-;

one

statesmen,

-being
-i
C from

-

>-■

sur¬

The problem,
our

Congressman from Louisiana

.■

geographically,

banking laws.

best

S.

quantity, and. rate ..of savings above-that of_195;6. l/Thrs%: galloping-inflation!.
the latter part of 1957, provide more funds v f
Perhaps no other segment of ourfor mortgages and business capital.
f
'//-• " y'"' ..--t; y i econciny'j will suffer- .tnpre heavily-

Headquarters

require amendments

bankers, economists

is capitalism's
can

iaA

,1

might, by

Francisco, Pittsburgh and Boston.

for

-C

-t

luii

jeing

the.

and

money

»

.

this goal?
At the end of 1955,
the basis .of
capital funds ranged

requirements would, of course,
our

»

HON. ALLEN

.

larger banking institutions

therefore, calls

"r

A

thari! at the beginning.

U.

:
:
>
•
i
7
t
i J":
From the standpoint of banking and credit, the following are significant:

of the magnitude
needed to support our
domestic and international credit

both

f

and: will

these: expenditures, however,

high cost of construction.
fconslrifction.

borrowing

located in New
York, two in Chicago and

are

'i.

_

through conservative

billion/This is 10.%-"above the.

.;.

surplus totaling $500,000,000 down to
$130,000,000. Thus $50,000,000 was the maximum
legal
loan limit of
America's largest bank. Of these 12
banks,
seven

avirl

shortages of mprtgage

managed
$100,000,000 to a

these banks would have to have
capital and
plus totaling at least $1,000,000,000 each.
far

.

ach^d
•

(;

because

privately

power,

How

.

if

are/f major signifi- /

»
lVQtinrml

Residential construction will fall-Jielow/lwtpf.
of

/

19o6

Ranker to- the

growing volume of business at home, these
times provide the logical moment to
revital¬

banking system.

our

and

as

Therefore,

President, Southern Commercial and

to

our

prosperous

ize

now

—

curtailed

of financial debacles.
If

^

and postponed because ot
of shortages. ,.;
shortages
As the first session of the 85th Congress buckles down;
especially steel and also bqcause of inade¬
because
/nade-Work/there are a'number oh indications- that 1957
quate long term capital. (Construction of Abilities, cannot
long.tbrm
^Construction, of/utilities cah'no't
n1 h
■
f
i-parhin« imr--*'----\yill have-a far-reaching impact upon the economic —11
well¬
be postponed to any significant extern..

,

marvelous industrial

our

has not been matched by

backs from

J-

1

of materials,

the; history of
has extjited

Our example

the

our

.

.

Through application of

have been forecast at $43
1956 peak year.
Some of

mankind.

of

•

PrnrlfTnt

level ever-achieved in

the

A

increase

practical intelligence, and will¬
ingness to work, we have raised; our
standard of
living to the highest

Cyma s. Eaton

jater—will prove to f)e disastrous.

has been very wise and is working in a direction which
wjQi keep "us from going over the brink.
Many have
criticized the Federal Reserve Board in Washington for
its attitude in ;this regard.
Regardless of t .e conse¬
quences, the p&ople of America must realize that tight¬
ening of the belt, though unpopular, is absolutely essen-

4U".
production at the

Product, National and Pprsonai Tn-*
Personal In
by at least 3Part of this will
be reflection of price increases..'/Sv* '
^ : •
/
B. Capital, expenditures and new plant and equipment

.

our

war,

/

./Tlto Federal Reserve Board" in its tight money policy

nonferrousjne^

Specifically, the fpUowing items

,

people contribute,}
inspiration to the /rest.,

an

-

i.1

our

of the world.-

buying "on the cuff," .then an about
and this will eventually lead to a

o

gTeat

.

unique American

which all of

follow,

highway construction.14) Slight decrease in demand for constructionmate-t, -«al and necessary to sa>?e us from ourselves 1 hope and;
JiJUa..,,,511
n.imhpr
believe that within the near future; we, as a great people
rials for housing will reduce overtime in a number nf.;
of
and as businessmen will'.realize* the fallacy of over¬
industries associated with, residential construction/ Lum¬
spending and under-saving.
•
ber production should not be above that of 1956.

qoal,

ore,

will

:

and

power

■

Production of most
high, but because of puce d c

;4,

prospertiy for American business -and
For the basic industries with which I am asso-

:

years

healthy economy.

higher cost operations."'
.
""
(3)
Production of cement and most other building
materials will strain capacity due in part to increased

•

and

industry.

outlook are the

7

Nineteen hundred and fifty-seven
begins briskly, with
bright signs everywhere of another near record year of.

expansion

extravagant

face

time is expected and some decrease in

Chairman of the Board,
Chesapeake and Ohio Railway Company

and

lines, building construction, and other_i ndustries.

(2)

The

us

ever

continue

S.

George S. Eccles

now> pay

to

years

come.

CYRUS

it will take

.Re^

•of

and

in for trouble, and

years

No; individual, no state, no nation has
been able to recover when it consistently and per-.
Demand and orders for steel should keep produc-/; sistentiy went further and further, into debt, and I am
tion at ful capacity, at least for the first six months.
constrained to believe ftiat bankers are most guilty by
quirements for steel for shipbuilding with the expanded /, encouraging the practices that enable the individual to
Merchant Marine will reduce further the amount of steel/,
g0 deeper ancj deeper into debt../Today's custom—buy
that would otherwise be available for fabrication, pipe-

investors

more

to

(1)

tourists interested in

mean

the people of America
the most dangerous

of

one

to extricate ourselves,:; If financial institu¬
tions and merchants will discourage a lot of unnecessary
upon

Among the factors significant in the 1957

forgetful of its bigness that it reveals its greatness."

will

,

present

habits,'we're

following:

.

means

thinking

authoritative sources, the personal debt attime is approximately $150 billion.-- This"
"figure has increased more than $100 billion in the last
ten years. .It is stupendous and staggering, and if we
-go
not change our spending habits and our.
borrowing;
tre

employment, and production at capa^:
city in many industries, the highest

,

that

realize

and

up

cording

purchasing power in our history, and
also a new peak in credit expansion.

To

sanity

'places in the world to live is beyond their means? This'
applies especially to the astounding personal debt. Ac¬

•;

experience
,
reveals the U!. S. at its undogmatic best:
the helping hand guided by the undoctrinaire spirit, so

a

Monetary

"if'-fi.this—Will

The second big

been successful in pre¬
further inflationary pres-' • /
far as possible with mone|

before the Associated Harvard Clubs, "The Puerto Rican
.

have.

now

we

.

j-

,

Increase
in prices, .[
however, can be traced principally
(•
to
wage
spirals over which tight-/
; money policies cannot be effective. './/

over the world, the success
self-help effort and free association with

c?f Puerto Rico's

I.

'

.

Reserve tight

Federal

controls.

tary

breaking down all

adapt.

dollar

people that we are once again on the road to economicstability.
V / :
.!..;/.

sures

Significance—Already

to learn

_

avoiding further inflation and will convince tlie

venting

<

•

.

There reevidenced

polwv-.has

some 3,000 "Point Four"
observers from five continents have come to Puerto Rico
<

and we will all be

*7-cent

The

an

the number one position.

poses,

ductivity. *■ .'

of 1,500 new guest rooms.
has

pur¬

In so doing, the dollar will become more valuable/'
proud of our sane and sound progress.
Naturally, reducing the.huge aebt will be a contributing
factor in creating a more valuable dollar instead of the

Uh7,

price increases due largely to
spirals where wages have increased beyond that of labor pro¬

investment of $12,000,000 and a potential
In the past 10 years the island
risen to second place within the- Caribbean in num¬
of visitors. In the years ahead it will be aiming at

resenting

a.

vast

by

currently some 11 hotel projects in work rep¬

are

be some leveling off by midyear. \
threat of additional inflation ast

on

resources

.

wage

Mayflower, Puerto Rico has proved of enormous appeal
to' tourists. In fact only this year did the supply of ac¬
commodations begin to catch up with the demand, and
there

some

more

Lake City

a

of

rate

There may

sports facilities, along with a
goes back a century before the

enties, fine beaches and

A

Security Bank of Utah, Salt

good business year is .indicated, for
increase should be less than .that of

Although

industrial climate

can,.and no doubt willn gradually get back
sound basis and we will ber able to use our
for constructive rather than destructive

omy

GEORGE S. ECCLES,

;

(

President, First
l

Chronicle . ....'Thursday, January 17,1957

Commercial and Financial

The

C8

Of

a

children

course,

ultimately

and

grandchildren

only

to

make

small tax cut.
we

could

make

a

substantial

start on

our

journey back to fiscal solvency by
degree of discretion in appropriations

necessary

exercising some
foreign aid and

for

related programs during the year
As of July 1, 1956, Uncle Sam has
appropriated
something like $46 billion for so-called mutual security,

ahead.

or

over double the
entire amount voted for WPA and
similar programs undertaken
during our national depres¬
sion.
Of this amount,
roughly $10 billion had not been
spent when the 1957 fiscal year
began. Despite this huge

carryover, the Administration has served
will come to
Congress again this
year

a

bigger foreign aid

appropriation.

with

notice that
a

Needless

Continued

it

request for

on

to say,

page

if

6S

185-:®umbcsr 5§04 . Vh. The Commercial

Volume

-v v posals in the United Nations. We
are
willing to enter any reliable

Continued from'page 65

agreement

Union

State of the

and Financial Chronicle
,y

the

Message in Full Text

which

trend toward

would
ever

the provision of art administrative

insure the orderly and
operation of existing ar¬

to

agency

reverse

proper

dev¬

more

>•

rangements under which multilat¬

astating nuclear weapons; recip¬

eral

rocally provide against the possi¬
bility of surprise attack; mutually

that end I urge Congressional au¬

is

trade

carried

now

uTo

on.

thorization for United States

mem¬

control the

outer space missile and
bership in the proposed Organiza¬
We must be joined by
satellite development; and make tion for Trade
the capability and resolution of
Cooperation, an ac¬
feasible a lower level of arma¬ tion which will
speed removal of
nations that have proved them¬
ments and armed forces and an discrimination
against our export
selves
dependable defenders of
easier burden of
military expendi¬ trade.
freedom. Isolation from them in¬
tures. Our continuing negotiations
We welcome the efforts of a
vites war.
Our security is also
in this field are a major
part of number of our European friends
enhanced
by the immeasurable
our quest for a confident
peace in
to achieve an integrated commu¬
interest that joins us with all peo¬

security.

believe that peace with
justice must- be preserved, that
ples who

aggression

of

wars

crimes

are

is that

truth

This

our

sur¬

quest

nations

ward

nity to develop

requires

constructive
the

against humanity.
Another

this atomic age.

attitude
of

as

well

the free world

to¬

coop¬

erative effort in the field of atomic

demonstrate

To

world requires vestment, that can give all of. us
modern,
adequate, dependable opportunity to work out economic
betterment.
military strength. Our nation has
An essential step in this field is
made great strides in assuring a

Atomic

Energy

World

events,

Agency.

magnified

have

responsibilities and the

the

opportunities of the United States
Information Agency. : Just as, in
recent months, the voice of com¬
munism has become more shaken

of truth
clearly heard. To

confused, the voice
be

must

enable

more

our

Information Agency to

with these new responsibili¬
ties and opportunities, I am asking
the Congress to increase appreci¬
cope

appropriations for

the

ably

lishing

this

and for legislation estab¬

program
a

service

career

for

the

Agency's overseas foreign service
officers.

energy.

expansion of trade and in¬

today's

in

vival

market.

We likewise welcome their

a

all

among *

a common

national

and

unalterable
the atom

manity,

a

again

once

shall

ask the
Congress to authorize full United

K263> ?67

J

granting

legislation to regularize the status
in the United States of Hungarian
refugees brought here as parolees.
I

shall

shortly recommend to the

special message the
immigration laws
that I deem necessary in the light
of our world responsibilities.
.
The cost of peace is something
we
must face boldly, fearlessly;

Congress

by

changes in

our

.

Beyond

involves

it

money,

changes in attitudes, the renuncia¬
tion

old

of

sacrifice

prejudices,

of

even

seeming

some

The

to

Hungarian Refugees
events

historic

recent

in

Only five days ago I expressed
to you

Hungary demand that all free na¬
tions share to the extent of their

the grave concern of your

Continued,

on

page

modern defense, so armed in new

deployed, so equipped,

weapons, so

our security force is
powerful in our peace¬
time history. It can punish heav¬

today

that

Jfr oiK/.v

Ov\

most

the

■

•*.

ily any enemy who undertakes to
us. It is a major deterrent

attack

to war.

By

research and

our

ment

efficient

more

develop¬

weapons—

of amazing capabilities—are

some

THE DETROIT BAM & TRUST COMPANY

These

created..

constantly

being

vital efforts we shall continue. Yet
must not delude ourselves that

we

safety necessarily increases as ex¬
forces

or

in

being go

Statement

research

military

for

penditures

December

wise and reasonable
level, which is always changing
and
is
under
constant
study,
beyond

a

money

spent

wasted

31t 1956
DIRECTORS

•

'

*

.

-

•

:.

on

inflated

the. very

arms
may
be
sterile metal or
costs, thereby weakening
security and strength we

;

on

money

of Condition

Indeed,

up.

seek/

Calvin P. Bentley

security

than

requires

military

Cash

that

Any

program

could
Any weakening'of our

endangers

defeat
national

will

diminution
itiative of

Due from Banks

•

*

and

of

resolution,

the

our

of

,

.

,

,

.

*

.

357,338,296

.......

96,611,869

.....

any

Real Estate Loans

,

.

*

.

Stock/

Federal Reserve Bank

the heart

closely
of

Accrued Interest and Prepaid

the

tions,
own

Charter of the

the

with

United

aire

because

it

is still

.

Other Assets.

.

,

>

.

.

V

.
.

t

.

»

.

;

,

.

.

.

•
.

.

insists

Expense

.

.

.

.

.

Despite these strains

.

>•.

other

*

•

«

.

.

.

.

.

.

•

.

will

nations,

we

promote .mutual

free

our

Strength

world.

of

product

a

health

welfare

and

prosperity

and

eco¬
social well-be¬

Consequently,

even

programs

as

Individuals,

Automotive Materials Corp.

Executive Vice President

Corporations and Others

U, S. Government
Other- Public

.

.

.

.

Funds.

-

.

.
.

.
.

.

.

.

$

.

satisfying the natural demands
people for progress. There¬
by we shall move a long way to¬
of their

9,007,805

ChQifjnan
American Metal Products Co,

30,186,442

.

James McMillan

533,993,311

Director

Ferry-Morse Seed Co.

Savings and

Time Deposits

Total Deposits

.

.*

.

Unearned Interest
,

.

Accrued Expenses and

416,880,951

.

H. Gray Muzzy

$

-.

Liability on

^

.

.

.

.

.

Raymond T. Perring
President

.

93,909

.

Harry L. Pierson

209,740

.

($10.00 par value)

„

Chairman of the Board
Detroit Harvester Co.

'

Capital Stock

Bearings, Inc.

5,629,517

Letters of Credit

Other Liabilities

Federal-Mogul-Bower

4,763,199

Taxes

-.

Chairman of the Board

950,874,262

.

$ 18,378,500
Cleveland Thurber

32,000,000

.

Surplus

.

Undivided Profits

.

.

.

General Reserves

.

.

.

.

.

.

.

.

>

.

Senior Partner

Miller, Canfield, Paddock

9,509,348

.

2,823,909

& Stone

$

62,711,757

Herbert B. Trix
President

Total

$1,024,282,384

W. M. Chace Co.

C. David Widman
Director

United States Government

$75,700,000 are

The Murray

Securities in the foregoing statement with a par value of

Corp. of America

William R. Yaw

pledged to secure public and other deposits where required by law,
of the State of Michigan amounting to $5,657,236.

President

including deposits

Wabeek

Corporation

peaceful world.

Stresses "Open
A sound and

Skies" Doctrine

safeguarded agree¬

MAIN

OFFICE

.

ment for open

skies, unarmed ae¬
rial
sentinels, and reduced arma¬
would

contribution

provide
toward

valuable

a
a

durable

peace in

the years ahead. And we
have been persistent in our effort
reach

are

Frederick C. Matthaei

of military

we must emphasize aid
friends in building more

ter

to

494,799,064

,

$

we

productive economies and in bet¬

ment

■«*.

Charles H. Hewitt

assistance,

a

Herbert H. Gardner

Demand Deposits:

regional

our

free

essentially

ward

Treasurer

$1,024,282,384

Chairman

severe.

should vigorously prosecute meas¬

our

Kennedy

William A. Fisher

Leslie H. Green

Its

and
strong, and dire predictions of
their disintegration have proved
completely false.

to

Butzel, Eaman, Long,

93,909

of

alliances have proved durable

continue

3,871,697

.

.

Repeatedly in

have been at times indeed

ing.

<

Frank D. Eaman

Senior Vice President

months, the collapse
of
these regional alliances has been
predicted. The strains upon them

nomic

V

Chairman

8.271.587

.

recent

is

Joseph M. Dopge

fisher &> Company

and difficult,
on
equality

many

ditionally divided.

the

Vice Chairman

1,511,400

230,177

Total

among
its members and brings
into association some nations tra¬

within

Seld'en B. Daume

374,852,256

142,595,053

.

.

recent in¬

a

the world scene.

on

problems

strength,

Chairman

Parker Rust Proof Co.

$232,257,203

,

LIABILITIES

This system

that

Willard M. Cornelius

Na¬

security and the security

ures

The Detroit Edison Co.

3.756.586

.

.

other nations.

With

President

to increase both our

serves

troduction

.

;:v" t*

Walker L. Cisler

Gust &

regional pacts, developed with¬

in

.

Letters of Credit

Customers Liability on

Our system

friends.

our

•

.

Bank Properties and Equipment

establish¬

military

cooperation

in

forces of

at

produce must work

can

.

vigor

blow

a

finest
we

.

.....

.

defenses.

The

177,744,607

.

.

Loans and Discounts

and in¬
individual citizens,

strike

ment

$

.

.

our economy

would
our

%

Savin/is Bank
Mitchell-Bentley Corp.

Corporate and Other Securities

Eco¬

power.

roles.

and

United States Government Obligations

.

Owosso

State and Municipal Securities

far

nomic and moral factors play in¬

dispensable

Chairman of the Board

RESOURCES

\

.

National
more

such

agreement. We
prepared to make further pro¬
an




GRISWOLD AT STATE

•

DETROIT, MICHIGAN

Complete Banking and Trust Services
OVER

A

CENTURY OF COMMUNITY SERVICE .

DETROIT

•

•

BIRMINGHAM

the
self-

interest.
Soviet Mideast Aggression

Aid

of
peaceful servant of hu¬

shortly

I

i

in thev responsibility
asylum to victims of
Communist persecution. I request
the Congress promptly
to enact
of

our

make

to

purpose

'*•»'

■

par-ticipartion *in tftev Inters capabilities

States

both

t

52 CONVENIENT BANKING OFFICES . MEMBER

•

FERNDALE

•

FDIC

SOUTHFIELD

69

(264)

and-Financial Chronicle

Commercial

The

m

..Thursday, January 17,1957

..

/
•

66

Continued from^pgge

effort

that

we

world peace,

rattierthan attempt-to -bury them under a

blanket of tax dollars.

green

\

spending, and that we seek to uncover
deep-seated ^problems* which ijehdahger

the

resolve

and

«,

•

connection, I think we should drive for three
major objectives. :
this

In

.

\ First, the substitution of. free-enterprise, private

de¬
velopment on a partnership'basis between United States
industry and underdeveloped lands for- the present sys¬

FRANK E. FELT

implementation of a program of true
mutual security, with other nations carrying a fair share
of the burden of developing backward lands and arming

their

alone

economies

the

in

those

with

Western

without

world

creation

of

B.

President, Atlantic City Electric Company

in

residential

12

past

use

in

months

electricity
12%.

was

England

hours.

This

kilowatthours

figure

in

1956

2,980.

was

spent over $13 million for
total

compared
in .1951.

During

1956

with

and that of

•

On

in

The

>

retain

To

tutions

expansion

EMERY

Corporation

spite of.

program

dual

significance in this
stage, air freight

forecast.

Still

.

forecast, therefore, is for
improvement generally, and
even
sharper gain in air freight.
three

basic

good

for

consolidated

were

start,

in

1956.

After

capacity is in

areas

new

before

in

our

1956,

C.

rubber

items

tresses

kept sales volume

represents

of rubber

The 1956 sales figure
of the 1947 sales

10-year growth of 57.9%

Consumption of rubber, products in the United States
will amount to 1,435,000 tons.

Synthetic rubber accounted for 60.9% of rubber con¬
sumption in 1956, compared with 58.5% during 1955 and
51.6% during 1954.

despite the drop of nearly 25% in

from almost 8,000,000 in 1955 to
slightly less than 6,000,000 in 1956.
Reports in early December indicated the rubber indus¬
try would sell between 101,000,000 and 102,000,000 tires
for passenger cars, trucks and tractors
during the new
year.
'
new

cars

.Some

62,000,000 or 61.5% of the tires sold last year
replacement—a market expected to become in¬
creasingly important as the number of cars on the streets
were

1957 there will be about

64,000,000

stimulate the-demand

1957

cars

for

and trucks in use

replacement tires.

industry, stimulated by

models,

has* created

new

markets

demand lor
New'14-inch tires which began

rolling off production lines

late

m

stronger

1956

exnected to

are

account for 80% of

original equipment sales in 1957.
By the middle of the year air springs will alsn be mov¬

rising

ing out of Firestone's modern
struction

'' :\l

Roland A. Erlckson

cannot

see

much

In

addition

and

in

new

plant

now

under con¬

Noblesville, In'd.

They will reduce damage
and give motorists the
smoothest rides they ever
had, and their adoption can
be compared with the initial use of
pneumatic tires for
and

Possible negative factors

trends.-

mat¬

volume of $3,420,000,000.

for its

goods-projects now under
way—the rising expenditures by < Federal, State and
local Governments, a
rising automotive market, improv¬
ing farm income, the nationwide higher wage rates now
price

a

original equipment tires.

major proportions
This' rec¬

over-all

rubber

*

The automobile

the tempo of the
many capital

and

foam

Rubber industry reports indicate gross sales

which will

economy.

we

to

for all rubber products at a

There were 58,600,000 cars and trucks in use in the
United States at the end of 1955 and by the end of last
year the total had increased to 61,200,000.
By the end of

1957 are the appearance of profit
squeeze and some
over-expansion in certain industries, relatively high in¬
ventories, and the tight money market. These factors at
the moment,
however, seem to be more than offset by

effect

iires..by

and roads of America swells.

a

today's levels.

hoses

rubber

products will reach $5,400,000,000.

ifiod-

-

from

high level.

a

in

in

synthetic

a

in the United States, had its second greatest
in both sales and production.
'
New products and increased demand for thousands of

in

nation

available workers, it is obvious that

an

the first time that

year

the

within
few percentage points of t leoretical
plant capacity, and the limitation on
over

tires made of natural rubber."

was

industries

all-time

made possible by the

gain in 1957

pronounced "equal or better than

truck

Tire sales held up

a

and

Fire-

under the most
conditions during the year

pronounced satisfactory for. truck

was

production of

economy. • During

tant; stimulating influences.
With the nation operating

where the market has far
exceeded




was

of

tested by

were

one of expansion, growth and vi¬
activity for rubber manufacturers.
The industry, one of the dozen largest manufacturing

deposits

of capital goods expenditures
during 1956 with all of its concomi-^

John

air

of

made

The year 1956 was

of Industrial

history has

reaction

rubber

brant business

cycle

ait-"

Emery
freight is now
on its
way.
Second, air freight ca¬
pacity will increase substantially in 1957,
according to
airline schedules hither newly in effect or
shortly to be
instituted. Air freight volume
closely follows air freight
capacity, and it should be stimulated even more than
normally in this instance because much of the new 1957
uncertain

rubber

interest payments.
but the year-end

major adjust¬
ment in the all-important automotive
industry without its' resultingin /a

ord

First, the 1955-56
trend supports it. A
turning point in
air freight development was reached
in
1955,' and the significant gains

further expanded

Board

Never

throughout' th&

reasons

year

this

in

reached

American

chain

This

predicting a
freight in 1957.

net increase of

a

measured 'by'

as

Firestone, Jr.

It

r

further

for

activity,

•been able to absorb

proved to be a remarkably accurate
indicator of general business condi¬

then

and
H. S.

of

rate

20%. decline in automobile production and
17% decline in housing starts, over¬

ern

should grow more rapidly than busi¬
ness
in
general. However, it has

made

high

a

Federal- Reserve

tires

truck

Coral

grueling

consideration .of the. business outlook for 1957
carefully evaluate the trend of the capital goods

must

coun¬

U. S. Army ordnance

.

Production,
high levels.

are

Large
c.f0we's

Any

*

synthetic with the

steadily expanded to make this

President, Guaranty Bank & Trust Company,
-Worcester, Massachusetts
.

a

try less dependent upon-the supply
of natural rubber from abroad.

ROLANI) A. ERlCkSON

considerably better.

There

a

cQmRensgte for higher
will have its problems,
results should be satisfactory.
*

be

an

to

of the most sig¬

one

the army.

tp

all

tions.

•

can

Banking

A minimum 25% increase in the volume of air
freight
traffic is indicated for 1957, and the actual increase
may
a

productive capacity having
attained together with the im¬

high* borrowing costs.

was

Production of

allies.

committed

Sufficient
,,

t

is

industry made the greatest strides in its

of

lematical that it will result in

•

in its early growth

rubber

nificant developments of the year.

Undoubtedly there will be a considerable shifting
deposits among banking institutions and it is prob¬

of

'

C.

FIRESTONE, JR.

ral rubber

interest" paid on
accounts when business activity declines, resulting in a
lower yield on investments and a smaller demand for

program during the year we will sell $10 million of first
mortgage bonds.
Public
bids
will
be
received
on
January 23rd.

JOHN

S.

the desirable characteristics of natu¬

,

In order to supply part of the cash for ouri construction

There

The

a

operating revenues for 1957.

President, Ornery Air Freight

a

HARVEY

loans.

'

as

financing in the
capital goods recession develops.

Chairman, The Firestone Tire & Rubber Co.

well be 'raised What the outcome will be for those insti¬

company

new

gross

alternative plans ready to be implemented either

to their rate of execution or as to their

competitive position many banks will be
compelled to increase their rates, and the question can

2,157

28, our Board of Directors announced
an
increase in the regular quarterly dividend on the
company's common stock from 30 cents tb 32V2' cents
per share.
This will bring the annual dividend rate to
$1.30 per share. The 1956 earnings per share amounted
to $1.65 compared with $1:54 in 1955.
We forecast an.

$2,900,000 in

capital

letdown of

a

planning their expansion programs so that there

be

are

anticipate a year of good gross
"earnings resulting .from high.interest rates on loans and
-.securities, however net profits will suffer not only from
'higher Operating 'costs but'also through payment of
'higher interest on Savings accounts by those institu¬
tions who will take advantage of. the Federal Reserve
Board's permission to raise the interest ceiling.

November

increase of

our

Commercial banks

past five years.
;

>

now
developing in various Russian satellite states
might well provoke the Soviets to inaugurate trouble
in other'paris df the World to* divert'att'entioh from their
problems there. Should this possibility result in actual¬
ity it will have serious repercussions on our economy

construction bringing the
expenditures to $65.8 million in the

construction

could lead to

program

proportions than anything we have had
since World War II. I think it is time for managements
serious

rest

The national
our

realize, however, that the present

should

We

goods expansion

indications point to
a settlement by peaceful negotiations
of the Suez crisis there is a potential
trouble spot inMhev European area
of present turmoil. The seething un¬

Frank.E. Felt.

annual residential use of
electricity reached 3,100 kilowatt-'
L.

but with

each other.

While present

average
B.

occur

pact of

Electric

'the

1956

qualities of natural rubber has been
the goal of scientists for many years
and facilities to produce it will be

been

Company will spend nearly
$19 million for new construction in Southern New Jersey
during
1957. One-half of this expenditure will .be
allocated, to new generating equipment at Deepwater
Station,
including
an
additional
79,000 KW unit to serve anticipated
growth in residential electric use and
expansion of industry <in the area.
During 1956 wfe addbd 7,200 new
customers to our lines bringing our
total number of customers to 210,500.
Our gross revenues reached an alltime
high
of
$31,555;000 for
12
months ending November 30th repre¬
senting an increase of 8;2 % over the
same
period in 1955. The increase
City

of

later.in.the-year by rea¬

son

Atlantic

trend

of the two years being within three points of

averages

history in the production and development of synthetic
rubber during 1956 when, for the first time, it produced
more than a million tons.
Discovery of ways to produce
new types of synthetic rubber with

could

ENGLAND

L.

the

six

should be at a high level certain
segments 'will experience a declining
trend,
offset - however
by greater
activity in other lines.
Expenditures for new -plant and
equipment are being maintained at
a record rate but the possibility can¬
not
be
overlooked that,-a decline

much

do

in 1957 and a weaker second

stronger first six months
months—a reversal of

a

omy

neighbors.

European

would

to

"

integrating

mass-market by

a

Europe

ern

cannot afford

pronounced shortages in defense materials, there must
be offsetting decreases somewhere else in the economy
if we are to avoid trouble. My guess is that we will see

could

Certainly, the
economic union of West¬
towards bringing about
needed stability in this area — stability founded upon
basic economic principles instead of continued United
States grants and loans.
their

and

present conditions, the nation

Under

high

1956

Commonwealth nations

of

:

spend more than $40 to $45 billion annually for new
plant and equipinent (at 1956 prices). This means that
if steel and related industries must expand because of

event that

Third, a facing up to the realization that some of our
Western Allies, principally Great Britain/are incapable

'

,

capital goods cycle, however, has reached a phase
where real business statesmanship must be exercised.
The

level of business activity which prevailed
well be maintained for the greater part
of the first six months of this yCar with the possibility
that the economic skies may be partially clouded the
last half-year. While the total econ¬
The

in

v

standing

months.

Six

Jamestown, New York

Free World Allies.

of

indulgence is in new

to

the

Second,

i

only area in which there might be over¬
plant and. equipment. Preliminary
surveys suggest continued rising expenditures in this
field with no evidence of any collapse during the next
fact, about the

National Bank,

Vice-President, The First

i:.

probably most basic is the fact that there is no specula¬
tive froth yet present of the nature of the 1929 period
in either the real estate market or the stock market. In

more

spending,

of uncontrolled Federal

tem

The

tribution."

not only to fiscal insolvency but
I will recommend to Con¬
substitute imaginative^ realistic programs

unlimited

for

Role of Air Freight in Physical Dis¬
ability of air freight speed, even at
premium cost, to enable industry to improve and reduce
the total costs of its distribution processes is confirmed
by this research. Of utmost significance to industry, this
research' report is the firm economic foundation upon
which air freight will grow, not only in 1957. but in
all the years ahead.
4 *
"
As the largest air freight forwarder and the- only
one' offering
both an international and a nationwide
domestic airfreight service, Emery Air® Freight's growth
record-is a good index of air freight progress. In 1955
ami apparently again in 1956, Emery Air.Freight revenue
has gone ahead at the rate of $2 million a year.
A
similar, ,-gain. is expected in 1957,. arid this should be
typical of air freight transportation as a whole.
report pn "The

bankruptcy, as well.

moral
gress

dependability to industry.- After three years of
research, the Harvard Graduate School of. Business Ad¬
ministration
just recently published its
remarkable

close

-perilously

us

u

u-

.

and

grievances with the balm of dollars is drawing

world

accommodate the traffic

Finally, there is an important new element oh wmcn
the air carriers can support the sale of air freight speed

by salving

problems

international

solve

to

air carriers to*

of

available.

impact it carries will end
possibility of much-needed
budgetary reforms; if approved, it
loose another
avalanche of dollars for a global spending program which
apparently exists without any ultimte_objective.
In a few week's, I hope to have rwia report based
upon my inspection of our foreign aid operations con¬
ducted during a two-month period this fall. This report,
as did
my four previous reports, will deihonstrate that
request is honored, the
for at least another year the

this

our

ability

the

wear

on-automobile

parts

automobiles. Air springs will become a vitally important
factor in the rubber
industry in the years ahead.

Diversification and exoansion by the rubber industry
enhanced its optimistic outlook for the future.
Production of
synthetic lubber
which ' has
grown
-

steadily during recent y.ears has made great advances in
the tWo years since
synthetic rubber plants constructed
for government use
during World War II wOre purchased
by private industry.
Firestone for example,
bought two synthetic plants

at

"

Continued,

on

page

70

;i

»f'*:,'

*'■1

"■

*

Number 5604

185

Volume

n

;

•

•

»

•

,v;

.

>'

v

Chronicle

There,

,

our

tice

the Union

State of

•*

The Commercial and Financial

. . .

Continued, from, page 67

'

a

Message in Full Text

before all the world, by
loyalty to them, by our prac¬
of them, let us strive to set

standard to which all

May

we

at

home,

here

rights.

As

have

we

we

back through history to that

steer

uate, it is clear that our nation has
striven to live up to this declara¬

So

gaze

to individuals.

as

our

tried

and

trying to

are

long

whom

the

Dedicated to Peace
government over - the threat of Seat of
Government, in all the
Soviet aggression- in the Middle
Today we proudly assert that the
cities arid towns and farmlands of
East. I asked for Congressional
Goyernment of the United States
authorization to help counter this America, support these principles is still committed to this concept,
in a personal effort of dedication.
threat. I say again that this matter
both in its activities at home and
Thereby each of us can help es¬
is of vital and immediate impor¬
tablish a secure world order in abroad./.
tance to the nation's and the' free
The purpose is Divine; the im¬
which
world's -security and peace//By
opportunity for > freedom

R.

continue

we

as

deal.

we

To achieve

;

these

to. time,: there

time

will

the

immortal

presented to the Congress re¬

claimed

our

quests for other legislation in the
broad field of international af¬
fairs. All. requests will, reflect the
steadfast purpose of this Admin¬
istration to pursue peace, based on

asserted

that

be

Although in

justice.

some

document

that

pro¬

independence, 'they
every individual is

endowed bv Fie Creator with

eo~-.

the'dignity of all
ated in the
has

alike

men,

The
.

by

compass

perfect fidel¬

meet

a

•

White

Jan.

Joins

Sterling Sees.

Glen Boule¬

vard.

together in

(Special to The Financial Chronicle)

LOS

ANGELES, Calif. — Lewis
has joined the staff o:ft
Sterling Securities Co., 714 Soutli

T. Emond

/

•

Beverly

worthy

EISENHOWER,

House,

offices at

South

Spring Street.

10, 1957.

..

/
>

...

Wth F. J. Winckler
With

•

(Special to The Financial Chronicle)

Haseltine, Gilbert

4

(Special to The Financial Chronucle) - <
DETROIT,
Mich. — Harrison
MINNEAPOLIS, Minn.—Canute* Bird, Jr. is with F. J. Winckler
M. Johnson is now with Haseltine, Co., Penobscot Building, members

cre¬

/image of the Almighty,

been, the

we

securities business from

days

DWIGHT D.

Middle- East, we

From

more

of this, the first
session of the 85th Congress.

-

programs

as

first

a

a

LOS ANGELES, Calif. — Ray¬
mond Sigesmund is engaging in.a
2162

,

submit,., is

I

it,

ambition

and' justice will be more wide¬
plementation is human. /.*■
in the
hope -to assist in spread, and in which the resources : Our ^country and its govern¬
now dissipated
ment hav'e made mistakes—human
on the armaments
establishing a» climate In which
of war can be released for the life mistakes.
They have been of the
constructive and long-term solu¬
and growth of all humanity.
-head—riot of tue heart. And it is
tions to basic problems of the area
When our forefathers prepared
still true that the great concept of
may be sought.
...
•
// -/

proposed

our

to

Opens*

(Special to The Financial Chronicle)

by its

.

ity

H. Sigesmund

course.

guidance, there will be true prog¬
ress in human affairs, both among
ourselves and among those witn

tion, applying it to nations as well

peace

at

inalienable

tain

who seek

justice and who hunger for
can rally.
•

(265)

..

Wilson, Inc., 108 South

Gilbert &
Ninth

which

of the

Detroit and Midwest Stock

Exchanges.

Street.

•

cases

'details will be new, the underly¬
ing purpose and -objectives will
remain the

same.

proposals made bv tbe Ad¬
ministration
in
this
field
are
based on the free world's unitv.
This unity may not be immedi¬
All

ately obvious unless we examine
link by link the chain of relation¬

DETROIT

OF

ships that binds us to every area
and to every nation. In spirit the
free world is one because its peo¬
ples uphold the right of independ¬
ent existence for all nations.
I
have-

to

their

interdependence.

But

alluded

already

economic

^v+ends

ioterden^n^nr^

their

also into the field of

security.

•

CONDITION,

OF

STATEMENT

-

31,

DECEMBER

1956

First of all, no reasonable man

:

will
for

need

absolute

the

question

American neighbors to be

our

and secure. Their
prosperity are in¬

prosperous

and

security

RESOURCES-

-

extricably bound to our own. And
we
are, of course, already joined
with''these neighbors by historic

Cash

Again,

Other Securities

reasonable man will

no

perity

security

and

vital to

are

perity and
its

the

If the

security.

peoples

domination

could
for

be

not

by

insti¬

military

of

Bank Premises

aggressive

an

.

-

'

.

.

;

.

-

free

7,103,468.68

13,365,671.67

...

.

2,092,006.55

Credits

world commerce

fully

compensated
measures,

LIABILITIES

Deposits:
Commercial, Bank and Savings

.

.

,

$1,711,824,038.81

uninterruoted

and

movement of oil from the

Middle

East,

indeed,

Other Public Funds ' \.

88,410,709.85

United States Government

cannot

prosper

—

their economies would be severely

should

—

controlled

by

decisions.

Asiatic

an

be

area

Accrued Expenses and

be

the

and

Capital Funds:

and

Far

of

their

own

affairs

Surplus

($10.00

or

T"

.

17,171,044.67

,

2,092,006.55

.

value)

par

.../'v.
.,

.

,

$

k

.

Undivided Profits

;

of Credit

$1,854,-252,502.00

54,017,753.34

.

/

.

Common Stock

Eastward,/-are
peoples,
to ihdeoendent

Eastern

recently returned

.

*

•

Other Liabilities

Acceptances and Letters

subject to its

-

1 the

to

control

that

enemy

oil

movement of

Next,

722,286,015.88

.

$2,008,624,029.40

these people,
whose eco¬
nomic strength is largely denend-

impaired

588,197,761.35
134.088.254.53

.

economic.

or

on

$

.

.

Customers' Liability—Acceptances and

But

fent

.

.

Accrued Income and Other Resources

to fall under

American

any

♦

...

.

Real Estate Mortgages

imperialism, the violent change in
the balance of world power and
in the pattern of

147,527,816.33

.

.

.

-

,

Loans and Discounts

the manpower

were

;

28,974,000.00

;

90,000,000.00 *
16,134,476.18

*

135,108,476.18

$2,008,624,029.40s

now

emerging into sovereign
statehood. Their potential strength
constitutes

for

assurance

new

stability and peace in the world—
if they can retam their independ¬
Should

ence.

417,375,487.10
698,873,563.19

.

our own pros¬

tutions, the skills,
of

Western

of

.

Loans:

deny that the freedom and pros¬
Europe

$

Hand and Due from Other Banks

.

pledges.
r

on

United States Government Securities

thev

lose

United States Government

Securities carried at $179,856,881.30 in the foregoing statement are pledged to secure public deposits,
$16,808,668.88 of the Treasurer, State of Michigan', and for other purposes required by law.

including deposits of

-

freedom

and be dominated

by an aggressor,
the world-wide effects would im¬
peril

the

world.
In

the

cannot

that

world

the
its

are

Unitfd States
own security

Howard C. Baldwin

:'

V*

a

;

;

America's /vital" interests

world-wide,

Second,

we

;

„

,

-

."

These

v

.

J, * '

-

•

B. E. Hutchinson -

Ben R.'Marsh

"

.

Prentiss M. Brown

Charles T. Fisher, Jr.

John N. McLucas

John S. Coleman *

John B. Ford

W. Dean Robinson

»

Nate S. Shapero
R.1 Perry

"

\

Robert J. Bowman

v.
requires

,

/

;•

Ralph T. McElvenny

.

the rights
peoples.

.

i

William M. Day

'

a

and

decent respect

Ben

all

the

principles

peace

Member Federal

motivate

our
actions within the United Nations.




Deiiosit Insurance Corporation

-

Valley

E.Young.

•

Neighborhood Offices serving Detroit and Suburbs

for

of

56

Shorts

Donald F.

have community of

Third, interdependence of inter¬

ests

,

Harlow H. Curtice

Charles T. Fisher

interest with every *nation in the
free world.
r

Rodman

Heiiry T.

-•/•'

welfare, because: /•

embracing both
hemispheres -and every continent.
j

D IRECTOR 5

O F

has*: so

free .nations,

all

maintain

j ■ First,
are

free

the

neighbors/.. Without-coopera¬

tive neighbors,
and

of

BOAR D

short,

shrunk
our

security

/

"

J

The

Continued from page

GEORGE

68

Commercial and

several decades we

F. FERRIS

1955,, with a combined annual capacity of

,1

130,000 tons.
Within

few

a

govern¬

months, the capacity of the same two

plants will be 230,000 tons a year. During 1950 construc¬
tion began on a new plant at Orange, Texas, to produce
annually 40,000 tons of butadiene, one of the principal
ingredients of synthetic rubber.
the

In

past year, Firestone established a factory at
Ark., for the manufacture of coated fabric
as lifeboats, collapsible rubber tanks, lifting

Magnolia,

items such

bags for airplanes and gasoline tanks.
Modernization programs to install new machinery and

expand production facilities of
out

our company were

perienced

record

plants,
modern production facilities and expansions during its
fiscal year which ended Oct. 31.
$58,700,000 in

of going

new

During the calendar year of 1956 an estimated $180,000,000 will be spent by the rubber industry in the United
alone for expansion.

for expansion

Firestone's

well ahead

was

of the

$150,000,000 spent

in 1955 and the $131,000,000 in
world-wide

capital

7

^

spot check of sevindustrial firms inthat appropriations for new

dicates

••• •.

a

and equipment will be comparable with 1956. The demand also
remains strong for new construction
public utilities and all kinds of

program

operating at new high levels which probably indicates
expanding construction volume over the next two

years.

off

F

I

\
,

*

^

jlB

|

-

A.
..

,

in

some

as

Our

corporations to use their credit at present or higher in¬
terest rates on additional long-term financing beyond

our

Also,

it

seems

logical that

a

v

econ¬

I believe another round of expansion will be
planned. This, however, will be too late in 1957 to be a
factor in that year's volume.

1956 in total volume of con¬

Soils Investigation Division.

be expected in our expanding

%

omy,

forecasts, based on regional reports from 17 of
Offices, indicate that in all but two areas

activity of

committed.

the increase, as can

Another indicator of the. future volume of construction

the

already

lllMBI JBlllt

struction.

is

.

newly expanded facilities to work and check the results
against anticipated returns. Once this has been done and
the demand for capital and consumer goods remains on

District

will equal or exceed

.

wKm

mental programs.

our

,

breathing spell is due to give industry time to put the

will be a falling
types of construction,

there

shopping centers, toll roads,
and possibly private dwellings, this
will be more than offset by the increased spending on the Federal Aid
Highway Program and other govern¬
such

-

believe that construction In the lirst six
months of 1957 should exceed the same period in 1956, I
also believe the latter part of 1957 will see some easing
off. This will come about by unwillingness of the larger

that

Although

has

grown steadily in recent years.
In 1951 it spent
$36,581,000; in 1952, $42,952,000; in 1953, $43,680,000; in
1954, $43,693,000, and in 1955, $55,723,000.

an

Although I

plant

for

of

present-day architect engineer starts his services to cli¬
ents who are planning construction with borings and
soils analyses of alternate sites and
determination of
foundation requirements. Currently, our Soils Division
is

unprecedented volume

work.

Furthermore,

1957

1954.

expenditure

Certainly, present backlogs, which

eral of the larger

States

This amount

1956.

highest level in history, will carry into the

carried

Memphis; Los Angeles, Akron, DesMoines and
(Pennsylvania); construction ' of new plants
began in Cuba and the Philippines.
a

in

the

at

are

New Year an

at

Pottstown

Firestone invested

of

points to a continuation into 1957 of
high volume of construction work that we have ex¬

Every indication
the

have found that the volume trend

is a most reliable guide to the future trend
construction. This is a natural correlation since the

this division

President, Raymond Concrete Pile Company

Ohio, and Lake Charles, La., from the

Akron,

ment in April,

Financial Chronicle.,,;.Thursday, January 17,

For

believe the first six months of 1957 will
and that the last six months
will fall behind about the same proportion or perhaps a
little more. This should result in 1957 being the second
In summary, I

exceed

largest

1956 by

year

ent from

about 5%

for construction; certainly not greatly differ¬

1956.

this expansion Firestone's
capacity for passenger
truck, tractorand earthmover tires, foam rubber,
steel products, velon plastic fibers and basic resins for
plastics, and industrial products items was substantially
In

car,

increased.
Firestone continued its
search

and

activity in manufacturing,

re¬

development of defense

items. It produced
guided missiles, recoilless rifles,

of items including

scores

artillery shells and recoilles rifle ammunition.
Its international activities increased with the
adoption
of plans for a 3,000-acre rubber
plantation in Brazil and
the start of construction of a new synthetic rubber
plant
in England.
\
,

DeCOURSEY

FALES

Chairman of the Board, The Bank for Savings,
New York City
From

Ai

the

savings bank viewpoint, 1957 should again
satisfactory year. There should be full em¬
ployment and the total disposable income of individuals
could slightly exceed the level of 1956.'
This, of course,

be

a

fjMPiMl

oing i

that

f

I

'

3i^»j

I

this

will

be

at

sums available for
will come not only

spending

ing

will

experience

year.

appliances,
all

have

a

automobiles

should

satisfactory

very

DeCoursey Faies

ence

a

i

increasing level of
industry,
while not breaking any records during the coming year,
should experience a very high level of activity. Housing
are

The

construction

expected to be in the neighborhood of

1,000,-

Private and

public construction of new plants arid
equipment will be at better than average levels. Road

building will have

stimulating effect

a

as

well.

The effect of the

foreign situation will_be to continue
high military expenditures and to remove ail hopes this
year of any

tax reduction. However, it may develop that
by July '1, the foreign situation will have settled down
where world
trade will once again approach a more
nearly normal level. Nevertheless,-local and foreign de¬
velopments seem to indicate a continuation of the grad¬
ual

inflationary cycle which has succeeded the rapid
inflationary period brought about by the war. We can

expect the Administration to use
strong efforts to hold
this inflationary trend "to a minimum and we can look
forward to governmental policies aimed at

maintaining

a

sound'currency.

Interest

expected; to fluctuate

very

rates,

widely

therefore,

interest permitted

increase the rate of

mortgage loans guaranteed by the

on

Veterans Administration may result in
at this

figure, such mortgage loans

under

the

going market rate.

funds to take

care

by the public.

In the

the

fact

of all

It also

needs for
money

There

the necessary

seems

pansion in

the

our

very

war

likely to be

should

be

ample

housing required

likely that all worthwhile

tremendous

increase

years

will

year.

considerations, lies
in

birth'rate

the

require

a

huge

ex¬

entire economy to take care of the
normal

requirements

that will exist

rate of 5%. Even

a

will be met' during the

beginning with the
living

are

background of all economic
that

can not be
the coming year.

over

Pressure upon the government to

of

the

increased

adult

population

beginning in the early 1960's.

The existence of

so

many

favorable factors would

to make it almost
inevitable that 1957 will be

year.




a

47

m

he las

year.

somewhat

income.

(r

also

Bolstering this viewpoint is the fact
that our farm Population will experi¬

■

cba

lestic

De-

partment store sales, clothing, home
.

il

abnormal

any

increase during the coming

<

Wmnjnm

starts

erica'j

from consumer borrowings, but it is
not exPected that installment lend-

1-

000.

i

from consumers' incomes, but also

1
iikWw\ \
!

spending

consumer

high levels. The

f»J

;

of E

l's fi

a^out the same high levels that were
experienced in 1956. It also means

P'"-]
■

that savings should

remain at

means

'

coals

very

seem

successful

eve

tli

recei

Ohio
Oil

1

Number 5604

Volume 185

The Commercial
and Financial
Chronicle

.

ROBERT H. FITE
"

Agriculture and tourism also pushed to new

President and General Manager, Florida
Power

•

and

omy

Light Company

gained

nine states

ployment than
according

new

permanent

U.

S.

Census

of

months of

1956, there

:

,:
was

and

an

increase of 6%

placed

nation

Florida

as

over

of

one

the

These

as

a

whole

was

Florida stood second in the

manufacturing

its

states

The

18%.

nation, with

56%

a

Kansas,

is

in

are

aaccounted

a

even

paring August, 1956, with August, 1954
by Governor Collins' aggressive

marked

Florida's
another

industrial

13,900

development—the
in manufacturing

jobs

for

first

generating
under

the

in

"straws

years,

capability

continuing good business
cases
even
slight ex¬
pansion for the future, particularly

in

wind"

the

expansion

add

on

to an

up

the

part

for

of

it

pushing

1,000,000

to

it

64,000

first

so

we

There

record-breaking

expansion

for

expansion

10-year

totals $496,000,000.

outlook,

period

for $332,000,000 at the

of
an'

state

has gained
employment.

which

1956

activity.
disturbing fac¬

had

the rail industry,
upon

our

market

which

Fitzpatrick

industrial
certain

effect

in

par¬

These

company.

conditions

not

were

their

and
and

prices

altogether favorable

.

a

now

expanded
and

were

in

were
C. J.

.

With

the

on

looking forward to a
production of

are

continued

kilowatts—an

upon

a

this year.

ital investment for plant and equip¬

ment,

in the next three years.

was

of

many

materials

which in itself

half

optimistic outlook

part
industries and with the
indicated continued increase in cap¬

FP&L has already increased

56%,

some

the

this

of

$42,500,000 in

1961,

System

good, particularly
which period business

the same period of
1956.
industries express their con¬

in

$66,000,000 expenditure compared with

with

Railway

is

above

many

and

which will boost

long-range,

711-

fidence for

ending

the

of farm

movement

drought in certain grain producing

products,

steel

and the

areas,

strike.

Originally estimated

Grain

promotion

leaders

tors

Our

1957

months, during
run

Already the addition of four new generators
way,

for

1957 indicates

1956,

greater. Com¬
—

six

could

Business

chalked

outlook

season.

program.

about

the

generally

15M>% compared with

69% in¬

a

for

business

v

FITZPATRICK

ticular

the

third of Florida's 44,235 manufacturing job increase. In

manufacturing employment has been

The

(bank

activity

J.

The company's construction outlook for

increase

with

Sum-

better.

even

business

general

record-breaking

the past three

kilowatts.

Percentage-wise,

employment. Only

Greater Miami

other

and

for

increase of 64%

off

rapid growth of aviation there, topped it with
crease.

In

period of

only two

of

C.

President, Chicago and North Western

Florida Power and Light Company.

37,000

■

same

terms

highs dur-

rival the winter season,

soon

More than double the substantial 12% gain

outlook

reporting increases.

The nation

in

were

in

during the winter

up

dwelling units started, according to latest available

This

the

1955.

housing. Only

Manufacturers

figures.

1955

Measured

jobs in
manufacturing em¬
Florida for the period of 1947-54

seven

may

debits Greater Miami), it was up

econ¬

more new

did

the

to

the five

For

demands for

new

business

ing 1956 and the outlook for 1957 is

impetus to the state's rapidly expanding

creating

tourist

mer

The increase of industrial expansion in Florida
is add¬

ing a new

(267)

and

grain products afford an important part
our
revenues, and with a more favorable situation
anticipated in 1957 this alone should be helpful to us
through at least the first six months of this year. Grain
releases already are assuming sizable proportions, and

beginning of 1952, this represents

of

increase of $164,000,000 as we have had to raise our

sights in planning ahead for the state's rapid growth.

if

maintained

our

will

have

a

beneficial

very

effect

upon

revenues.

Industrial production is expected to continue at

a high
six months of this year. It is
industry will continue at a high
level, particularly during the first six months, and this

level

R 4 I L R 0 A D

One

GROW?

is

of a series telling what Chesapeake and Ohio

doing to make this

a

through

the

first

expected that the steel

bigger, better railroad.

should

favorable to

prove

us

compared to

as

its strike period. Iron ore is one of

ties,

and

because

traffic

ore

of

the

declined.

strike

steel

With

in

conditions

1956

with

major commodi¬

our

1956

iron

our

stabilized

within

the steel

for the fires

ruel

industry for 1957 and because of the anticipated
upturn in steel production, we expect an increase in our
iron ore tonnage. Automobile production is
expected to
be second only to the banner
year of 1955, and for this

of

Europe

reason

While

i|j Jay American coal

shippers

literally "carry-

are

coals to Newcastle." The
great

coal-shipping

Pfts of Europe that once supplied so much of the
wjlld's fuel have now reversed the flow—the coal
isftoingTn, not coming out.
IJ
■

Nfl longer able to supply

.

its

even

■ •

.

v

own

needs,

Ape is becoming increasingly dependent
erica's vast reserves,
il

d

coal

make

to

on

especially for metallur-

good steel and for quality

nestic

grades. Last year's export of coal was
47 million tons—more than double the
average

r

he last ten

<J

eve

years—and there is

to

Chesapeake

Ohio's great
yards and coal docks at Newport
vs, on

p

to

the trend will be
upward for years to come.

recently completed additions
((

every reason

Hampton Roads, Virginia, increase their

icity to

more

than 30 million

tons

a

To
at

is

move

the

same

time

serve

down to the

Of its present

new

fleet of 62,500 coal

ships

C&O has

are

hopper

cars, over

available for use-at all timesJ

More

sea;

and its traffic

of

movement

parts.——\

1957

if events

However,

should

of

the

clearly that there will be
are

half of the

be

first

the

no

over-all volume

good

six

and

could

be

should

months

softening during the latter

year.' ■ /

i.

.

industrial activity

'

,

we

fiave and

continuing to mechanize, modernize and streamline
operations

in

order

that

of

even

indicate

we

might

render

the

are
our

finest

transportation service possible. We are today completely
dieselized, and are now in the process of constructing

of mine

the

of

one

known

Ship¬

most

to the

to

modern

completely enclosed

shops

car

industry capable of making heavy repairs

affiliate, the Bull Steamship Co.
operations have been broadened,

an

While C&O's

quarters.

for

To keep pace with

group

improved

an

7,000 freight cars and the construction of 1,000 new
annually. Also, we have just recently substantially
our fleet of box cars and
gondolas, and antici¬
pate the acquisition of additional freight and
passenger
equipment. All of these major steps being taken on our

system lines reflect
continued economic

negotiations

by

fourth

better

joined with the other two coal-carrying
a

to

automobile

I

business

also needed, and to provide these

ping, Inc. Already 30 vessels have

years,

and

cars.

99%

operators in the formation of American Coal

of them

*

,

railroads, the miner's union, and

and

and

forward

and

expefct a high traffic volume in the railroad
industry for 1957, particularly during the first six
months, there could be some softening during the third

American coal users, C&O

building $50 million worth of

are

under

way

greatly diversified

coal continues

an

teen

for 70

over

chartered
more,

cars

increased

20

the past few

industry is

our

confidence

growth

and

in

SAM.

It

why Chessie keeps growing and going.

now

appears

1956

prosperous

for

M.

Third

in

and

the

American

of
'

.

President,

one more

1957

stability

Business.

important factor. And

the current revival of the coal
reason

year.

this vast tonnage

look

we

automobiles

FLEMING

National

Bank,

Nashville

rather certain that the momentum of
will carry over into 1957.
Estimates

defense and

governmental spending at all levels are
substantially higher, as are estimates lor both consumer
and
capital spending by business.
During the year, the Federal High¬
way Program also will begin to gain
momentum.

With the economy oper¬

ating

to

close

tionary

capacity

tendencies

and

infla¬

continuing

to

exist, the Federal Reserve authorities
undoubtedly will continue a credit
restraint
policy, and properly so.
This policy at present is still the
best
and
perhaps the only hedge
against a wage-price spiral getting
out of hand.

Ill
gW

Higher interest rates and aggres¬

I

sive savings programs should attract
>r

expanding exports, C&O has just completed

a

$3 million addition (A) to its Neivpoit Acivs coal docks.

personal savings, and there will
funds available from liqui¬

more

be

dation of
in

the

used

Would you like

a

it

finance

field

funds temporarily

and

in

from

sources

which

1956 in anticipation of

latex* date.

a

However,

apparent

loan totals to business by
in 1956. In fact, the current
high loan level in banks with the accompanying reduced
holdings of government bonds will to a large extent
confine new bank loans to levels regulated by increased
banks

cannot

another

CLEVELAND 1, OHIO

17%

deposits

Railway


http://fraser.stlouisfed.org/
1
Federal Reserve Bank of St. Louis

Fleming

that 20-odd billion dollars personal sav¬
ings plus some $12 billion surplus accumulation in busi¬
ness will not be sufficient to meet all credit needs, and

family? Write to:

tesapeake and Ohio
3809 TERMINAL TOWER,

consumer

bank

is

M.

existing loans, particularly

obtaining long term financing at

portfolio of pictures

of Chessie and her

Sam

some

or

other
MWFORT

m
now OIK

V"-:?:®

if

a

loan

sources

further

expand

as

of

their

they did

repayments.
funds will

credit

squeeze

It is,

have

therefore, apparent

to

is not to

be

be

made

available

expected.

Continued

on

The

page

72

\ '/

',1

V

'

j

v,

•'''

till

fit

Thursday/January 17, 1957

.

responsibility of maintaining
and advancing that product heritage.
- v
/;
/
These trends had a marked effect on merchandising in
1956 —; a business year in which sales volume for the
electronics industry as a whole established an all-time
we

.

1956

of

value

the

contracts

$11.3 billion.

was

salaries and wages, personal
and

entrusted with the

are

record of more than

satisfactory for American business
generally, and during that period several new records
were established.
Gross National Product (total output
of goods and services), capital expenditures for plant
and
equipment, total employment,
The year

industrial production in 1957 is
the increase, however, should
past annual -long-term rate of growth.
The outlook is noU uniformly favorable. Residential con¬
struction may show a further decline. While the contin¬
ued tendency-toward higher interest rates has caused
-businessmen to become more cautious, the. higher rates
«eem to be preventing the creation of marked excesses
in the business picture that might bring about a downturn
.'almost bqiial" the

As manufacturers

beyond our own span of years.

.goes

FLORENCE

F.

FRED

Steadily

the
5«*/ president, Koppers Company, Inc.
dealers, competitive manufacturers,
Koppers Company, Inc. will invest between $100,000,and sponsors. Color television sales are oil
000 and $125,000,000 in new plants and equipment within
in many of our markets.
More.and more
the next five years with about two-thirds of all capital
enthusiastically - and aggressively behind
of the newest, most promising items to be • 'expenditures earmarked for programs which assure the
company's continued growth in the
.
; ;

broadcasters

.the..increase
dealers

are

color

in
production due to labor disturbances.
Total
production would have in¬
creased even more, except for the
relative scarcity of manpower and

highly pleased with their purchase and with the increas¬
ing anfount of color programming. An extensive survey

materials.

The phonograph record business is on the ascendancy,
with strong indications that its-growth will continue.

construction,

Gross

earnings

higher

were

activity

reflected in

gen¬

Four main .factors are
Fred

More families

banking, notably through an exception¬

RCA

where applicants were good credit risks and
relationships between banks and cus¬

purposes,

for

from both

money,

bodies.-

mental
interest

rates.

might

continued

result

natural

was

to

be seriously

be

good,

disrupted; but

the

in

tions of

availability of funds,

In

reflec¬

of

barring
grave
developments.

outlook

for

1957

promising,
military
and
economic
international
If government expenditures for security

and other purposes,

"Victrola"

phonographs

marked

a

gain in 1956. The
radio sets provides a

in

interest

the part of, the consumer

purchase of

on

radios.

new

RCA Victor

than

more

appears

doubled

set

1957

on

for

a

ness.

similar increase.

In

Based upon
the

RCA

ital

'■

'

improvement program, are as large as forecast; if cap¬
expenditures of business for plant expansion and
are greater than in 1956, and if residential

course,

and

polyethylene plant to be built near/Los Angeles,
Calif., to be owned -equally by Koppers and Brea
Chemicals, a subsidiary of Union Oil Company.
.

pressure

*

Our sights

addition, the

..

Tar Products Division.
will

.

analysis of basic economic indicators,
Planning Department forecasts the

an

level

as

in

continues

1956, all of which

the

about

at

likely, it

seems

fully

even

Chairman

for

The

spite

slightly. With these developments in pros¬
pect, workers will doubtless feel confident of continued
will

consumers

spend freely out of current

probably continue

income

and

be

inclined

as

the

need

of banks

and

solid

operate
their

made

maintain

to

and

capital

structures,

aggressively

banks

are

and
in

has

business

good

conditions

and

resulted

FOLSOM

favorable

a

Namet"

vincingly
.creased

—

is

being answered

and

repeatedly

sales volume

p brands,

of

distinguished

^dependability and service.
/..
The American public's
brand

name

products and

tising will remain firm

by

well

for

Frank

M.

Folsom

just

test

of

<">od
value

—

these

are

the

con¬

in-

known

quality,




as

faith : in
in adver¬

and unshake-

long as they stand the
experience,. that t^ev are as
we say
they are. Quality and
upon

in Brazil and

Under
---

Suez

industry thrives
business

increase

is

in

in

which

brand

Italy and
To

gain of last
in

1957

over

limited interest in
two

are

a

other

steel plant in Chile.
plants to be owned

Spain.

with its research and development pro¬
which is expected to triple within the next 10
the company announced plans to build a $9,000,000

ville.

pace

The

on

a

176-acre tract pf land

facilities

will

near

Monroe-

at
Verona, Pa., which the Company has outgrown. In 1957,
construction will begin on the first building—a chemical
laboratory., To provide for an uninterrupted research

\

will

be

new

Verona

program,
A. E. Forstei1

?

personnel

into

moved

the

replace

and

the

center

employees
as
each

any- new;

accommodations

new

facility is completed. Transfer of all Verona employees

about

The rise in

year.

keep

research center

un¬

expected

1957

established

was

jointly by Koppers and foreign associates—a polystyrene
plant in Argentina and a wood preserving plant in
Guatemala. Currently, the Engineering and Construction
Division is carrying on important construction projects

conditions.

in

a

construction

^

crisis

drop

International Division

an

Koppers foreign investments and the product
the United
States
of its
manufacturing

outside

Some of Koppers interests in foreign coun¬
tries, owned jointly by the Company and foreign asso¬
ciates, include polystyrene and styrene monomer plants

current

will

average

be

gradual.

-

levels, how¬

,

and- local

v

tures

in the

probably will

the current high level.
capital expenditures in

picture.; Capital expendisidewise during 1957 at-about *'•
/

While there.*will
1957

as

a

whole

be

a

gain in
those

over

of^

v

1956, the increase will be about half of that which took *
In contrast, total governmental- expend!tures in 1957 may show almost twice the
gain, that took'
The

served

1957

.

outlook

directly

or

for* most

•

of

/ .*

•

the-industries

that*

"•

textiles, and bituminous coal, along with road- building- <
and quarrying,
probably will increase to a greater extent;
industrial production in
£957: The gain in
production, however, is likely to fall short of the
rise that took place in 1956. Increases are
expected also
in paint, varnish, and lacquer
production, in ore mining,

plastics in 1957.

Most

of

....

the

the

total

the
...

sales

Company
.

were

did

/;

_

-

.

new*productsand

in; products

and

not offer- industry

•'

V'

services

-

*

•

»/"

a

"V/ i-

are\offered

Chemical, Metal Products and'-Engineering and
Divisions..

Based

on

1956 .sales

estimates,

Company-sole* abou.t $42,060,000 worth of chemical
it: did

not- have

10

.

years. ago

/4e-:

principally

polystyrene,
polyethylene,.resorcinol, \ resins,
antioxidants, anilines and dyes.* About $13,000,000 -worth
of products manufactured
by-the Metal Products Division
were sold in 1956 which were
not made; by* the division
10 years
ago — mainly
gas
cleaning' equipment, boxmaking'machinery, industrial sound control equipment
and other heavy industrial
products.: The Engineering
-

than over-all

'. paper

and in

"

by the

which

...

are

indirectly by Hercules is favorable.

Company1?
ago.,

products
-

'

r'

decade

""'Construction

place in 1956.

place in 1956.

the

services

business
move

of

.

The production of passenger cars,
cement, most synthetic

as

cornerstones

heretofore.

1956

divisions.

allied-products in
all-time high for the

'sen*

in

.

*

con¬

"

able

the

production

an

tant* element

brand-name merchan-

in

money

expenditures are expected ,to
replace capital-expenditures in 1957 as the most impor-.

/•.

dise to build business and create new
customers. The question—"What's in

■t,

show

Federal, state,

increase

level-, features greater

favorable

higher

ever,

apparent in 1956 in the highly com¬
petitive radio-television and electronics industry;—will
continue into 1957 and will represent a
major factor in

on

quantity

Diversification Marks Koppers-Growth /
is likely to be moderate. Steel capacity is not large <
enough to permit a significant increaseTri .steel produc-* V*" In the past 10 years.
Koppers has been, engaged in a
tion above the current rate.
"
** - *
v,- i •; „
V
program of diversification; In 1956, more thaii $75,000,000

Changing sales and distribution patterns in American

centration

is

and

new

extensive

industrial production

hiarketing—strongly

dealers'

an

equal to the 3%

P/r. The shift in selling, largely at'the

1957

toward

sales

slowing down of the rate of growth
of the industry.
' ■

President, Radio Corporation of America

*

from

about

Industrial

to

to handle

years,

to

opportunities
business, volume::i

in

recovered

Other Highlights

During 1956

-

Slight recessions in general business
usually mean merely a temporary

in 1957.

providing

another

President

gram,

der

of

satisfactory rate of economic growth in this country
will depend largely upon the exercise of a
high degree
<of statesmanship by our business and financial
leaders

M.

tendency

chemicals

of

reach

The chemical

a

FRANK

and

Company;

plications arise.

and

of

Arroyo,

been

not

chemical exports to the
Continent, or
if other serious international com¬

the year among banks and all other business institutions.

continuation

Board

Powder

continued

should

brings

to

constructively, and to serve
customers satisfactorily.
These observations are
because competition is likely to be the
keynote of

The

at

'

That is, unless the shortage of dollar
balances of European countries that

adequate

position

the

successive year. The gain in
.1957 should approximate the increase
of about 6% that, took place in 1956.

strengthen their

With good management

Also

FORSTER

eighth

to

their

capital positions.

the

Production

1957

to

E.

general business outlook for

of

rates.

credit, if necessary. -These factors point to a
continuing strong demand for bank credit and emphasize
the need for strong and alert bank
management, as well

use

of

Hercules

rise

employment, and

the
/

commercial plant for the

have

ALBERT

at very high wages; that the
goods and services will be strong in
spite of increased prices, and that the total volume of
business activity will continue at the present high level,
or

plant

producing

of

may

employed

demand

total

While not large in size, the

aboutrl one-fourth t of
requirement for this vitamin component.

capable

began construction on a semidevelopment and manufacture
of high-boiling chemicals from coal tars, some of which
(f)

outlook for 1957
as
favorable, assuming,, of
that the United States will not become involved

reasonably be assumed that the nation's labor force will
remain

be

nation's

Economic

in war.

non-residential construction

same

(e) Started to build at Arroyo, W. Va.t a plant for
production of nicotinic acid to be operated by the

the

////'

•;

;

similar low-

Arranged for the construction of a

(d)
;

and growing busi¬

new

This plant is now 25%

pounds.

complete.

economic

modernization

number

At Port Reading, N; J., started construction of a
polyethylene plant with ail/annual

low-pressure

capacity of 30,000,000

--

a

.

Outlook

including the highway building and

the

-

,

Began

(c)
new

RCA Victor's introduc¬

for

1956,

developed, and technical
various application

given to customers on

construction of a new commercial-size
plant at the Kobuta operations for the production of
expandable polystyrene beads.
...
(b)

transistors

tape recorder field represents

economic

is

assistance

Phonographs

high fidelity instruments sold during 1955.

are

business activity.
The

of

use

radios,

of

made

Fred C. Foy

Completed

cations of existing products are

-

high-performance, low-cost, transistor radios pro¬
a
depth of penetration in the market never
before possible.
*■-"

vides

high level of

a

; *

tion of

as

natural

are

prosperity, which results from

profits

base for continued

began to realize that the increased cost of money and a
decline

"Victrola"

and

recorders

expanding

business
critics,, although not all,

many

and

tape

for the

expansion in the chemical field.
alone, Koppers:
-

(a)

classifica¬

every

,_

construction and
/ r ;
began the opeiauon ot anew uev«=j.upment laboratory at
Kobuta, Pa., where new products are tested, new appli¬

sharply

the fastest selling record

—

.

*•'

have

research

in

problems.

Sales

in

increase

an

increased

v

1956

In

year.

and

'This

1956

scored in

were

Elvis Presley

Radios

development brought forth some '
expressions of concern based on fears that

criticism and
business

The

a

for

divisions

sell chemicals.

major factor in Koppers cur-

a

rent

'7""7./;\y\

history, alone, is responsible for sales of more
11,000,000 single RCA Victor records in less than

than

private and public sources, greatly exceeded the avail¬
able supply. Also, the accumulated savings of the coun¬
try were inadequate to provide the long-term credit
needed to finance the large volume of mortgage loans
and the capital expenditures of business and govern¬

sales

record

been

expanding.

are

the

—

Expansion During 1956

Developments

as

in

star

The abnormally strong demand

"

records

increases

tion of music.

had been established.

for

Victor's

1955; the

over

where satisfactory
tomers

outlets

Retail

sold

being

are

(hi-fi) continue to boom.

satisfied where
needed for normal and legitimate business

were

phonographs

Divisions

which produce and

the
record-player, the 3-speed line and high fidelity

"45"

of customers, both large and small, were
funds

"Victrola"

More

strong

are

of the

Products
;

'Wfmf-

Chemical and ...Tar,..

programs

:

;

.

seeking home entertainment.'.
The teen-age population, comprising millions of record
fans, is rising sharply.
/.
s: /,•:/;

Florence

F.

expenditures were about $21,000,000 /
of which approximately 70% was for.

:

responsible for-this:

of Koppers

extension

an

previously announced plans for a
fiver-year expansion program which
was launched in 1955.
In 1956 capital

*

demand for credit.
Even though banks
screened loan applications carefully, the credit demands

ally

*

Records

is

This

.;

confirms this fact.

owners

Phonograph

prices

increased

and

/chemical industry.

Owners of color sets are

quality is excellent.

of color TV set

ing business reduced net earnings in
some cases.
The high level of busi¬
ness

one

.

-Color

erally, but the increased cost of do¬

were

as

sold.

interruptions

and

•.

.

of the public,

part

new

taking hold.

progressively, color TV* is

and

incomes,

reached

.

,

FOY

C.

FRED

continuously note increased interest in color on

We

construction

all

awarded,

Uater.

Television

peaks. These records were achieved
in spite of moderate declines in auto¬
mobile
production
and residential

.

>\*V )

'

be substantial,

not liked to

:

manufacture

President, Republic National Bank of Dallas, Texas

'

.

the rise in

Although

products firmly rest.- The brand name products .we
today have a heritage that in most instances

name

71

spot light will be focused more on the availability and
price of credit rather thim the factors Which are con¬
tinuing to support the economy at a very high level.
"

-

-

(268)

Continued from page

\

!

>

Commercial and Financial Chronicle-.

The

*72

i "

1

-

.

-

and Construction Division sold
worth of services in

approximated $19,000,000
1956 that it did not. offer industry

before
open

and

-1946;

hearth

such,-

as *

furnaces,

sintering plants.

the

design and construction of
ehemical plants, blast furnaces

Total-Engineering, and Construe-

Number 5604

185

Volume

...

The Commercial

and Financial Chronicle

%

Division sales were approximately $70,000,000 in
1956—nearly double the figure for 1955.
At the beginning of 1957 the Company had an order
backlog of approximately $137,000,000 of which more
thai! $100,000,000 was in the Engineering and Construc¬
tion Division.
By the very nature of Koppers business,
large backlogs are not maintained in its manufacturing
tion

divisions.

and

schools, should offset
building.

D.

R.

Railroad, the 1957 outlook is clouded by
of agricultural conditions.
A good or
bad crop year can make a substantial difference in our
program.
However, Katy expansion and improvement
plans will keep in step with industrial demands in our
territory.
n*.
C.

President, Rome Cable Corporation

bright but prosperity is not auto -

v

started the past year with both

...

36

is'now

It

March.

in

cents

*

*VA
,-

aWJ?. )

gjifc:;

oil,

mining,

McGraw-Hill

mates for

utility

estimate

A*

high

as

as

made by
20%. Esti¬

%. New housing starts may be down but size of homes

11

population and income increases.
Coupling this with commercial, industrial and public con¬
struction plans, over-all construction should be higher.
Coal mining industry improvement will have its effects.
increasing

is

Re&Tnt world

to

due

events

going to add

are

10%

to govern¬

spending. The automobile, airplane indus¬
scheduling-higher production levels. Railroad

ment defense

tries

are

equipment backlogs are heavy. The Middle East situa¬
tion will require further increases in the oil industry
and chemical

-X.r
Improvement in living standards with rewiring of
most homes over five years old to provide increased
pmVer for many new electrical appliances necessary to
modern
living provides an increasing
market. The
slogan of the campaign "Live Better Electrically" is
eatbhing
Gross

w

product

estimated to be up 4
Other

up.

■

..

volume,

industrial expansion of large commercial establishments.

for

of varying results for

even

Retail sales overall have

than

situation

textile

continues

improvement in

an

not

substantial

Cotton

do

be in the best position

finishing

and

with

The

needle

trades

C.

have

outlook

Kenneth

Fuller

ensuing

year

factors

and

consumer

to 5%.

must

be

recognized

spending
/;

which

although

to indicate

seems

a

con¬

tinuation of these trends.

of

heard

transportation field (largely aviation in our age)

reduced

that

although at
-

The

a

an

excellent

somewhat reduced

electrical

equipment

backlog

of

orders

lev& in most categories.

and

from

mechanization

better

technical

instrument

caution

significant
companies

to

a

particularly active

"Seed money." A more

by

recognizing
progress.

be

and

All

of

the

our

will

aboVe

profit picture and
industries.
For

own

factor. Excessive taxation de¬
higher income ^individuals of
realistic approach to depreciation

replacement
put

could

costs

additional

help

finance

strains on the

narrowing of margins for man/

mean

industry

we

expect that certain of the

adverse factors

early

prevalent in late 1956 will continue for
1957 and could well make production levels and

profits below the
look for

we

one

same

D.
•

period in 1956, but for the year
in the utilization

of accelerated progress

of electrical wires and

cables.

V.

FRASER

President, Missouri-Kansas-Texas Railroad Co:

-

The ruling factor in the economic outlook in much of
the Southwest for 1957 is the amount of rainfall and
winter and
area.

Large

spring months bring to this
areas

V '

•
;

3

Texas

and

ant effect upon an

V

ing economy.

ft:

♦

ft*

...

otherwise promis-

-

Latest "reports, however,

improvement
economy as a

H

•

drought-ridden

Oklahoma have suffered their sixth and seventh consecutive year of severe drought and
'this has had an increasingly retardof

rains;

indicated

the
farm-ranch
result of recent general
in

The Department of

Agricul-

ture said winter range and pasture
feed
prospects were changed from

r
l~-• X

hopeless to very hopeful and crop
prospects were brightened.
Except for the uncertainty in the
agricultural picture, I feel that the
Southwest generally
will improve
D
v
Fr»««
its position in the national economy
during the year ahead. The pace of
industrialization has shown no tendency to slacken and
1 look for
some acceleration
of this trend during 1957
as
industrial investment for plant and equipment on a
national scale promises to set a new record. Heavy con¬
struction, especially in the public fields of highways
f

-

,^|

M

"

^

'




rates.

with

a

nominal

velocity, high loan
If

the

another
may

not

active
be

general

year

quite

there

seems

to be evidence of

in¬

in

1957,

heavy

as

a

continua¬
we

have

much, namely, high activity in most lines with
volume in

a

few.

However, it is quite possible

less easily adjusted in the

and

reserve

com¬

in

optimism than in either

of the

■

Continued,

yeaf

cost
and

mer¬

companies, particularly those catering to defense, look
forward

efficiency has not kept pace- with added costs.
Foreign competition is increasing in majiy industries.
The tight money market has deferred some capital
expenditures. Growing need for municipal and state
services for schools, hospitals,-roads ancT public build¬
ings which has mushroomed their taxation programs is
another

year

"rolling adjustment" about which

pa^t.two years.

labor

prives

Christmas

of

of the local

ing year, and we look forward to 1957 with a little more

deterrents. Inflation continues with the annual

productivity

volume

active

interest

demand

the "roll" may be

hypodermic of wage increases. Price increases are gen¬
erally not sufficient to offset the rising costs, and in¬
creased

a very

enjoy

should
loan

the

so

evidencemf-incr^asing activity as does the machine
with

increased

In summary,
tion

The

industry,

actual

throughout the year.

shows
tool

The

to the expectations

*

are

can

it

dence,

not expe¬

uniform pattern during the year, as some

for the

prices.
up

dustrial picture follows the pattern which is now in evi¬

have
enjoyed high activity and good profits, whereas others
are
operating under reduced volume and profits. The
a

and

demand

in the least favorable.

rienced

not

increase in deposits, some increase in

synthetics

of

higher

was,

probably been slightly better
although most of the increase may be

ago,

Banking has enjoyed

indicate

recovery.

facts

present

year

chants, and with inventories rather high and some indi¬
cation of consumer resistance, it may well be that unit
sales for the coming year will not improve over 1956.

and although cyclical

area,

a

to

trade

to

soft spot in the industrial activ¬

dyeing

-

-

different indus¬

results

to

.

.

The construction industry has been maintained at a
high
level in
spite
of some
decline in residential
building, the difference being more than made up in

due

a

competition,

;

different companies within the same

The

price

severe

companies, on the other hand, are showing
high employment, but at reduced profit

margins.-

on apace.

national

progress

are

programs

will

tries and

seems

R- Fraser

expenditures

increases

verging

and

evident, however, that
be one of widely di¬

It is

year

any

plant and equipment are up as high as

new

in

1957,

automobile,

of

survey

assured, but as for the seCond half,
may well experience some change
spite of the generally favorable

inventories,

Electronics

good

well

patterns call for

airplane, communications, railroads,
as well
as government. Almost without exception differbhce in predictions for 1957 is the amount of increase.
Preliminary

we

high

with little likelihood of immediate improvement.

The trend for the first half-year

-optimism.

rather

ity of the

elecconstruction,

chemical,

cautious

and

price

Television companies are suffering from over-produc¬

tion,

seems

be

'

manufacturing,

of

lll|

■

number of companies having three year labor contracts should
assure
a
longer
period of labor

trical

Board,

enter the New

we

increase in

overall

an

catering to the

decline in volume

The industrial rubber goods industry anticipates some
improvement in operations and volume with employment
and payrolls about the same as last year.

industry.

.

A great

Our industry serves

the

a

has prevented it from increasing
prices commensurate with increased costs.

Year, the outlook for commerce
industry in the Southern Passaic County area is one

and

the

HHS7V*

per -

pound and supplies of both copper
and aluminum are adequate. ♦A-v.,

As

outlook.

gj^f/

and aluminum in short supply and copper reaching the histor-..
ically high world price of 55 cents

copper

of

margins although

low volume of demand

County Bank and Trust Company, Paterson, N. J.

the

chemical industry

of 18% has been posted for February.
Unfortunately,
this, together with the increased fuel costs, is aggravating
the problem of the textile industry itself because the

FULLER

KENNETH

Chairman

electrical manufacturing industry, in 1956
we had
the greatest production volume in our 20-year
history. Commerce Secretary Weeks' year-end statement
on
prospects for 1957 well sums up our viewpoint. It
said that the outlook for 1957 is

mWh

reduced

For the Katy
the uncertainty

FRASER

of the

textile trade has suffered from

,

A.

Like

That section

temporary lull in home

any

Ship and Travel Santa Fe
"All the

Way!"

on

page

74

/r

Continued

!
L-

frorr^

1

1'

/

73

page

Our

%

vw^'

-

in¬

been

trends

our

will

probably

In

,

most

do

Motorola has

in television

that

towards

broadening

discovered

we

in

that

1956

Americans, or one out of
adults, owned shares in
publicly-held corporations. This, ac¬
cording to our recent
Census of
SliareownerS, represents a healthy
increase of 33%

made.

was

And when you couple these

shareowners in private corpo¬
rations, the nation's stockholder fam¬
ily tops the 10 million mark.

5

38% of the sharepublic companies earn
less than $5,000 a year. Almost twoof

them

much

remains

million,

we

under

earn

recognize,

we

to

of

be

feel that

$7,500.
that
In a nation

done,

the

And

efforts of the New York

entire

of

almost

people should

more

country's productive facilities.
combined

G. Keith Funston

course,

many

170

the
realize that the

we

own

Stock

Exchange and
be harnessed to

financial

community must
spell out sound investment practices, and to dramatize
the

opportunities, risks and. rewards of shareownership:,

Accordingly, in 1957 we will continue to stress the
need for study and planning before investing in stocks.
We will continue to caution and counsel, especially the
new
investor.
Our messages to the public .Will -again

j make it clear that the value of securities, like that of
type of property, may go down as well as up. We
go right on making it crystal clear that a steady
income, cash savings and protection against the unex¬

any

will

pected must
We

will

come

before shareownership.

continue and

intensify our efforts to expose
the get-rich-quick artists who are out

the phonies and

to milk the American

as

in 1956.
rate,

public of their dollars.

In 66 communities from coast to coast

to

10%

seems

we

The

courses

and

;

Over the

1

ber

hope, to expand the number of Mem-

years we

active

in

this

from

program

Monthly Investment - Plan, which
ownership within the practical reach of

puts

will climb

an

many

vigorously

to

consider

plans

pursue

to

encourage

investments

regular

In

military

in

than

steadfastly help develop

efforts

our

to

make

gilts to children simple and

a

13

of

states

adopted

and

a

age many

the

District

the

President, and

For

tion

atively

on

stock
Some

We

have

aim

to

already
encour¬

from
In

investing will also

addition,

available to

tively

as

Finally,
tions will

the

of

discouraging people

much of

our

our

attention.

Exchange

Members

the public will be (broadened

as

effec¬

our

understand

and

to

as

the

creatively

as

opportunities

possible to help
for

peo¬

shareownership,

help industry raise the billions of dollars in
needed

This is the

to

;

Manager,

finance

essence

of




a

the

future

new

on

a

sound

basis.

Harbison-

*
....

expectation. Durable goods and par¬
the metallurgical
indus¬

population, being users of our product, from the young¬
est infant to the oldest adult, should enable the industry
to exceed its

1956

production by about 2%.

FREDERICK V. GEIER
decades

several

For

of

level

the

spending

consumer

generally regarded as the key factor in our economy.
Emphasis was also placed on the role of Government
expenditure. Not until the past few years did the spot¬
light focus on the capital- expendi¬
tures of business and industry. Now
was

the level of

activity in the producers'
industries is being rec¬
ognized as the dynamic, factor in
good times and economic growth.
In the United States during the
past 30 years, population has grown
44%, but the number of machine
tools at work has grown 150%. This

durable goods

has

been

a

vital

factor

in the

vancing standard of living.
The peacetime record level

ad¬
pur¬

primarily for plant expansion pur¬
poses.
In 1957 emphasis should shift
to the replacement needs of Ameri¬
can
industry. The fact is that less
than 40% of the machine tools in use can be classed as
up-to-date, measured by current design and productivity
Frederick V. Geier

of out-of-date machines, in use are

The 60%

td)ol industry begins'1957 with en order

The machine

backlog averaging about six' months. For the longer
range, it has a large potential backlog of replacement
business, as industry comes to recognize the cost savings
available and as finances permit increasing investment
in modern cost-reducing equipment.

tries

are
a
key group involved in
period of growth in capital
expansion. It so happens that these

this

segments

of

the

economy

are

also

the

primary customers of the re¬
fractories industry.
In addition to
high-level activity, the construction
of

productive capacity means a
high level of demand for refractory
new

materials
struction

for
and

both
for

the

replacement business.

expected,
Earl A. Garber

self

is

to

supply

the

midst

con¬

additional

As might

this

the refractories
in

new

future

of

be

growing

industry it¬
a

program

of

expansion,
modernization,
and
geographic diversification of its productive facilities.
Technologic developments and improvement in con¬
sumers' productive facilities are bringing about constant
changes in refractories materials. A general trend to¬
ward higher temperatures demands higher quality re¬
fractories. Expanding research by the refractories pro¬
ducers is also resulting in higher
quality and new types
of brick.

One of the results of the application of higher
quality material is either the extension of service life of
refractories or higher furnace output, or in some in¬
both

advantages

are

achieved.

Although this
linings is extended,

the total demand for refractories continues to grow due
to the growth in the consuming industries as mentioned
above.

The outlook for the period ahead of the major refrac¬

tory consuming industries lends itself to

People's Capitalism.

Clark K. Uamom

costing industry over $1M> billion per year in excess
production costs, compared to the new types now avail¬
able. The cost squeeze evident in various industries points
to the need for cost-cutting methods and machinery.

is every indica¬
a period of rel¬

is in

often means that the life of furnace

advertising messages, films, and publica¬

be used

means

standards.

ticularly

stances

possible.

ple

money

occupy

facilities

serve

are

1957.

rapid growth.
The present capital expansion
ties- in closely with this general business

demand

states to follow suit.

dividends, both of which

the coming year.
This
population growth
that all ages of the expanding
in

tremendous

over

program

uniform code of

Columbia

General

sustained period" ahead, there

a

more

Our program to revise the capital
gains tax and double
tax

increase

pated

President, The Cincinnati. Milling Machine Co.

GARBER

that the American economy

We

of

suggested model statute.
more

for

chases of machine tools in 1956 were

.Walker* Refractories Company

American

giving

the first half of 1957

EARL A.

the

will be pushed.

easy,

gress

1,000 persons in the first half of

standards for these clubs in the various states.

Similarly,

fluencing

manufacturing facilities
are
under
construction
in
Phoenix, Arizona, and it is anticipated the company's
employment for military activities will be increased by

continue to encourage the formation of investment clubs
will

the
are

the company is engaged in
several new research and development projects which
hold promising prospects for the future. Additional new

Information kits prepared for our Member Firms will

we

population I trend is
important factor in¬

the shoe industry's pro¬
1957. A total population
of about 3,000,000 is antici¬

through

electronics,

business through the MIP.

and

most

the 920,000 units sold in the like period of 1956.

more

on

its origin more than 84,000 plans have been started.
to

another

reasonable for the first half of 1957.

estimated 20%

Exchange for as little4 as $40 a quarter, has gained
increasing acceptance. In the almost three years since
intend

the

for

sales

nation's

The

industry

thousands

the

in
TV

continue.

shoes should

Another bright aspect of consumer electronics is the
popular interest which has developed in High Fidelity
record players. The industry's business in this category

share-

people by permitting them to buy stocks listed

people

sizes

first

the

consumer

2,000.

The

;

screen

for 1957

antenna-in-the-handle.

already

with schools and colleges. In
these efforts at the local level.

Firm representatives

7O0*to about

I
television

general business outlook
predicated as very good for
six months, and the last
half leveling off, the slowly increas¬
ing per capita consumption rate of
With the

portable radio will

exciting

more

have

work

will- intensify

expected to

are

manufactured in 1955.

continue in 1957 to be the
radio product. This is due partly
to the fact that its mobility jibes with, modern living,
and partly because it enjoys many new functional and
styling features such as transistors, plated circuitry, and

most

| speeches, films, the distribution of literature, adult edu¬
we

Galvin

supplies on contract to the
Ford Motor Company,
Chrysler Corp. and American
Motors declined somewhat in 1956, as did the volume
of
automobile sales.
With
the automotive industry
anticipating better sales in 1957, it is expected this
phase of Motorola's business will shovr improvement.

Investor Information Committees. These groups,
spearheaded by our Member Firm representatives} are
effectively telling the shareownership story: through

1957

W.

Color receivers will be produced at a

Color

set up

cation

2,500,000 units

totaling

months.

577,000,000 pairs were

shoe industry.
Robert

Car radios which Motorola

in

thirds

pairs were- produced

better pace

Motorola will feature the same

.

585,000,000
by the entire

approximately

mates

definitely. The first half of 1956 saw a sales increase of
38% over the previous year, and a further increase of

Significantly,

But

Looking ahead, the year 1957 will probably be an¬
year of opportunity for the shoe industry. 1956
should be the highest year on record according to the
National Shoe Manufacturers Association which esti¬
other

which would justify further reduction in the price of color.
1
The consumer radio business will continue good in¬

investors

with

owners

CLARK R. GAMBLE

not expected to reach the volume of a million units
annually before 1958 at the earliest.
The differential in price between monochrome and
color receivers is the main stumbling block to ihass
volume sales of color.
There is nothing in prospect

four years ago

over

when the first such Census

total

this

Of

1956.

winter

12

a

is

the large

President, Brown Shoe Company

In 1956 the com¬

be portables.

moderate

million
every

of

in 1957

8.6

now.

.

.

backlog of orders on. hand which
continued high level production of refractories.

assure

pany
lacked a strong program in
portable television. In 1957 the pace will be improved
by a good flow of portables.
The industry total in TV
units for 1957 might be down slightly from the 7,100,000

Stock Exchange

will, in 1957, continue
the base of corporate
ownership in the nation's free enterprise system. Our
goal: a true People's Capitalism.
Real progress has
i already
been made. So much so
work

reflected in

•

picture presented above

generally optimistic

The

borne out in

will require
year or two for maturity.
Mean¬
while, it can be expected that more
of the smaller companies dependent
on television Vill fall by the wayside.
1
Looking to 1957, Motorola's busi¬
ness, over-all, is projected to exceed
1956 moderately.
' *
The company's television business
is expected to
share in the sales

The New York Stock Exchange

to

especially,
major ex¬
pansion program. The demand for cement particularly
by the construction industry assures essentially capacity operations for a number of years into the. future. This
industry also, is in the midst of expanding. The outlook
for other, major refractories consumers^ such as ceramics,
glass, chemicals, and petroleum refining, is also one of
high level operations.

cost improvement

cases,

Theijoutlnqk iw theno^errqugL&mta&ite goqd,
for aluminum. The latter i§ in the midst of a

a

increase.

I

through

meanwhile

programs which can be
•actual product pricing

KEITH FUNSTON

President, New York

rises will depend on. the
improvement each manufacturer

production mechanization, and
indirect labor efficiencies.

year.

G

,

for

added

coming

the

in

not

_

the price

of

extgnt
achieve

can

and

the industry pattern

not follow

Frank Freimann

that

The

degree of offsetting cost

of

This is typified
by our performance in 1956 with
sales and earnings way ahead when
the industry • as
a
whole has ex¬
perienced a decline. I believe that
our own Magnavox
business in the
coming calendar year will be at
least 30% ahead of 1956, but I again
industry conditions.

mention

A*-;,

President, Motorola, Inc.

creasing year by year regardless

would

i-.t

GALVIN

Mounting costs will make, higher price levels;
television receivers almost a certainty during 1957.

has

Financial Chronicle. ^-.Thursday, January 17? 1057

p.yThe Cormnercial and
!

"5

>

business

own

'I'

ROBERT W.

'

President, The Magiiavox Company

:

,*»'

"

fjf

it*
tM.'

FRANK FRE1MANN

'

•

.

.

p;

it

t2to)r;r

The

steel

tions and

one of optimism.
industry expects continued high level opera¬
plans further additions to productive facilities.

LORING L. GELBACH
President*

i

1956

has

national

retail

Central

been

a

National Bank,

good

Cleveland

for banking.

year

With gross

product, personal income, employment, wages,

sales,

industrial production, capital investment,
living rising to new highs, the demand
bank credit was strong through¬

and standard of
for

out the year.

The
tures

created
for

;

increase
for

new
an

capital expendi- •*
plant and equipment

unprecedented

long-term

effect

was

•

in

capital

demand

The

funds.

inflationary

in

that

the

demand for funds out-paced savings.
Recourse to the commercial banks
for additional credit

was a

contribut¬

ing factor making for a rise in the
cost of living, higher interest rates,
and for a tight money market.
The

business

outlook

for further improvement

wifh

a

for

1957

is

in keeping

high level of capital expendi¬

tures by general business.
With
capital
expenditures

Loring

L.

Gelbach

con¬

tinuing at a level higher than in 1956, the demand for
capital funds will continue to out-pace savings through¬
out

if not the entire year.
As long as this situa¬
continues, the Federal Reserve will be under in¬
creasing pressure to follow a policy of credit restraint.
As the year progresses, the rate of increase in the money
supply will become of increasing importance to the con¬
tinuing growth of the economy. This is particularly true
most

tion

Continued

on

page

76

Number 5604

185

Volume

The Commercial

;

Tribute Paid to

and

Street

Broadway,

last

Friday. J^n. 11, to honor the mem¬

Alex¬

of

ory

ander

Hamil-

•

.

Secretary of

to subscribe for

mon

T

stock

(par $10) at $56

a

com¬

when

was

in

share for each ten shares held

by Aaron Burr
in a duel on

,

record
will

Weehawken

•

and'

Jan. 9.

of

i

i

Trinity'^

additional

one

and for

capital.

capacity
tons

4,950,000 net tons
to 5,950,000 net

were
was

1, 1957, and are ex¬

to

make

major

and

expect

additions

and

to

1958,

im¬

in the

demand for steel

growth

try.

on

All

such

additions

and

World

War II.

Dec.

with

curities

termined, but at the present time

in

common

Dec. 31,

the

business

from

7020 Garrison Street.

ment Co.

corre¬

Hamilton

d

July 14,

i•,;1

His grave, is marked by the

1304.

original monument erected by the
vestry of Trinity Church follow-,
ing his death.

Rev. Horace W. B.
Bishop of New York,
delivered an address on "Alex¬
ander Hamilton, the Churchman."
Albert C. Simmonds,\-Jr., Presi¬
Right

The

Donogan,

Wall

wreath

of

the-Bank

of

dent
48

laid

Street,

York,

New

memorial

a

Hamilton's grave.

on

Mr.

Simmonds was joined in a solemn

processional to Hamilton's grave
by the clergy of the church, crucifer, and also acolytes. Alexander
Hamilton, besides being one of the
of

organizers

He

resigned

New

and
1788.

1784 to

from ;the bank
first
Secretary

the

as

serve

of

Bank

constitution

its

director from

a

was

the

wrote

York,

to

of
Washing¬

the Treasury in George

ton's Cabinet.
."At 19 years of age, Hamilton
jtoined Washington's Revolutionary
forces, rising to the rank of Lieu¬

tenant-Colonel at -20

ing
aide."

at

distinguished himself'in
battles." notably when he

the

assault

outworks

the

on

Yorkfown, Va.
Hamilton

of

Chief

He

several

led

and: becom¬

Washington's

George-

was

:'.:V '

v

born in the Islp>^d

Niers, West Indies, Jan..11, 1757.

Eesides participating

in the Revo¬
lution," his great'work.lay in his

-efforts to nersuade the Americansto afopt

by

the Federal Constitution,

which

first

existence

national

our

-firmly

V'as

established.

~

the

As

the. Treasury,

of

Fecretary

Hamilton held Congress firmly to
the duty of paying every dollar of
the national debt at face value. He

also prevailed on Congress to

the
in

d^bh?

the

than

by the States
the war and to him

on

other

anv

i-o-'or

credit

aidoot

incurred

ca^rving

more

for

of t^e

man

belonged

the

establishing

and oil are many things

gas

nation;

To Hamilton's pen and versatil¬

ity,

we

major part

owe, a

of the

famous Federalist papers in which
he cogently expounded the Federal
Constitution
his

dav

Colonials

the

to

with

collaboration

in

James Madison and John Jay.

Judged

achievements.

his

by

Hamilton may be said to rank with
the great men in American history
like Washington, Jefferson, Lin¬
coln and Benjamin

Franklin.

Wahton Adds

to

Miracle fabrics,

tires, plastics, paint.. .fertilizer, ;anti-freeze.

vitamins.

GROWTH OF T. G. T. GAS DELIVERIES

of

and oil. And Tennessee Gas contributes

The nation's
for home and

Staff

BILLIONS

IN

Continuing stream of useful products from hydrocarbons

gas

generously to all of them.

industry. It also explores for and produces

and oil...extracts, converts natural gas hydrocarbons...

(Special to The Financial Chronicle)

PORTLAND, Oreg.—Marylee D.

1947 '48

products of petroleum. "

west

Co., Inc., 901 South¬
Washington Street.

As

Blends gas
for better

you

living.

(Special to The Financial Chronicle)

Wis.—Arthur L.

Henninyfield has become associ¬
ated

with

Gardner

F.

Dalton

&

Company, 735 North Water Street.

TENNESSEE

GAS

TRANSMISSION

Dais Hill Adds

COMPANY

(Special to The Financial Chronicle)

PUEBLO,
McMartin

AMERICA'S

Colo.

has

been

—

Edwin

added

to




LEADING

TRANSPORTER

OF

NATURAL

GAS

K.
the

staff of Dale R. Hill and Company,
114 West Ninth Street.

'50

'51

'52

'53

'54

'55

'56

for more and more of the
life, Tennessee Gas brings
and more of it.

gas is used
better things of

and oil with imagination and enterprise

Joins Gardner Dalton
MILWAUKEE.

'49

i

Fras~r has been added to the staff
of WaWon &

OF CUBIC FEET

of gas

longest pipeline not only transports natural gas

refines and markets

HOUSTON,TEXAS

more

offices

He

V

Alexander

shares

1955.

was

at

for¬

merly with J. K. Mullen Invest¬

$558,021,000 compared

$508,775,000

the
on

ARVADA, Colo/-— Herbert E.

corporation during
the nine months ended Sept. 30,
.1956 totaled

on

Johnson, Jr. is engaging in a se¬

Sales of the

im¬

pe~r

1955 sales

Forms Johnson Inv.

'

1956.

7

respective

share were

paid during 1956, including a divi¬
dend of 75 cents a share paid on

provements have not yet been de¬

nationwide

increase
of

Dividends of $2.55 a

and steel

c

an

end

the

provements to their properties in

the

$64,351,000, equivalent to $6.05

outstanding

by Jan. 1,
of 92.2% since

tons

net

6,222,000

of

$692,683,000 and net income

share

a

pected to further increase capacity

made

end

riods. For the full year

1955

have

$47,253,000

$46,415,000,

the

at

steelmaking

iaries

1957.. The offering is be¬
a

from
1,

to

respectively,
equal to $4.34 and $4.38 a share
on the common shares outstanding
and

in process have

or

amounted

income

$64,-

spent to date.
improvements

Armco's

Jan.

on

and

to

sponding period of 1955 while net

ap¬

riod 1955-1960 Armco and subsid¬

competitive position in the indus¬

(EST)

Jan.

on

including
During the pe¬

Subscription rights
p.m.

been

estimated

been

made

increased

products, and to improve Armco's

expire at 3:30

have

an

additions

already

may

other purposes,

working

has

000,000
The

be required, will be used to defray
the cost of its expansion program

of

ing underwritten, by

.

buried in y

Churc h y a r

ratio

Jan. 24,

Heights," New
Jersey,

the

as

of-which

000

Armco Steel Corp. will add the

order to meet the expected

share

killed

12, 1804

on

largest offerings of
common
stock
by an industrial
company in recent years is being

projects

proved estimated to cost $244,000,-

with such additional funds

the

1,088,179 additional shares of

died on J u 1 y

was

of

holders of rights

Hamilton

he

Steel Stock Offer
One

various

Smith, Barney &

\ '

•

net proceeds from the sale of the
shares to its general funds, which,

by Armco Steel Corp. with
the offering to its common stock¬

the Treasury.
;

...

made

first

the

ton,

Co.

Underwrite Armeo

bicentennial commemorative
service was held at Trinity Church,
A

(til)

group headed by

Smith, Barney Group

Alexander Hamilton
Wall

and Financial Chronicle

76"

The

(272)

Continued

from

Ready acceptance of electric living is

74

page

funds

that Defense and State Department needs for

now

the increase.
The increase in the velocity of turnover of the money
again

are

on

supply is approaching its former ceiling. A more rapid
increase in the money supply, somewhat in excess of
the

of

rate

savings, is therefore to be expected if the

growth of business is not to be choked off.
The main problem confronting the economy is infla¬
tion. The fact that savings have not kept pace with the
economic

of the

growth

is

economy

powerful force

a

making for further decline in the purchasing power of
the dollar

the years.

over

encourage savings

A change in the tax laws to

is essential if

we

successfully

to

are

savings to finance capital expan¬
growth.
climactic year for
the monetary authorities. With inflationary and defla¬
tionary forces increasing in intensity, important mone¬

provide the

necessary

sion and provide for sound economic
The year 1957 is rapidly becoming a

policy

tary

decisions

growth of the
inflation

of

that

calls

for long be postponed if
is to be assured and the excesses

cannot

economy

deflation

or

for

avoided.

cooperation

This

well

as

is

situation

a

restraint

as

the

on

part of government, business, finance

and labor.
The banking outlook for 1957 is excellent.
Further
increases in bank deposits and loans in keeping with an
anticipated accelerated rise in the money supply is
at

hours, more
than double the average at the end of World War II and
4.5% above the national average. We believe the annual
figure will be above 5,000 kilowatt hours by 1965, as
such applications of electricity as home heating and cool¬
ing

increased to about 3,100 kilowatt

use

developed further.

are

During 1956, a year supposedly overshadowed by the
record-breaking business year of 1955, total sales of kilo¬
watt hours in our franchise territory increased another

10%, and we anticipate a similar rise during
regular increase in our business, year after

higher

interest

rates

should

higher

in

result

to 319,900 kilowatts, more than twice what
at the end of World War II and 4.5% above the

nected system
it

was

1955 record.

GEROT

President, Pillsbury

will

1957

be

From

another

BRUCE

The

since the middle of October

late Christmas rush of buying.

think

we

maintain

high plateau

ap¬

interest

is

S. Gcrot

Paul

supplies

in

outlook

will

materials

raw

consumer incomes
demand for quality food

continued
The

of

We

high

and

with,

business in 1957
have ample

our

favorable.

are

to

work

result in

should

a

products.

grain merchandising and feed in¬

our

gredient merchandising areas is favorable, and barring
a critical international situation, we expect that we will
be able to continue an aggressive export program on
wheat

both

a

business

favorable

in

year

The year

1957

as

A.

President,

GIBSON

Hartford Electric

The

Light

the

many

reasons

Electric

Co.

Company we have
for believing that the year 1957 will, as

•did

1956, prove no exception to the electric utility in¬
dustry's historic trend of doubling its business approxi¬

mately
In

by

every

recent

10

years

our company,

by

grown

with

national

of about 2%

annually, compared
1.75%. Today we serve

of

average

almost one-third again as many residential customers as.
we
did 10 years ago.
We estimate that in the next 10
years

the population

about

25%.

Another
the

of

territory will

our

increase

by

first

half

branches
show

of

more

of

undeniable

■households.

in

stimulus

recent

years

Nationally,

in

to

in

business

activity

the formation

five

the

years

of

is

new

number

of

couples

without

dropped

by

one-third.

In the
.square

over

their

territory served by

miles

comprising

being built each

our company, an area of 245

the

city

the

the

building of

same

year

rate

which

for

saw

the

some

homes

new

industries moving

new

homes

years

will continue

to

new

are

about

at

government,

During 1956,

come.

home starts

in

our

a

taking strong

LEONARD

H.

growth

service

Most

Lave electric
but large and
room

freezers,

air

and

and

and
a

In

steps
a

to

prevent

services of all kinds,

including

variety of electrical appli¬

families

in

our

refrigerators, radios, and

vacuum

promising markets remain

conditioners,

ranges

automatic

and water heaters.




territory

cleaners,

for such

washers,

now

things
dryers,

of

Because

all

these

in

its

prevailing indications in

development.

time,

is

as

This

maturation

been

facilitated

competitive

of

television

created

major

a

the

as

quality

available
dium's

national
over-all

an

to

of
the

look

is

that

our

1957

than

that
William

E.

L.

Standard

sets

months

ten

sold

were

sets).

Local

of

1956

their best year in many years.

M.

for its

a

The
in

L.

H.

Goldenseal

as

10

million

about

six

radio

million

country have had
All signs in tTie industry

medium.

anticipated continued
in

rises

both

in

income

and

consumption

the

mass

the

expenditures should be re¬
entertainment industry.
Moreover,

projected pattern of high employment in manufac¬
turing industry,, along with shorter working hours and
higher hourly wages, should also contribute to increased
entertainment expenditures. Therefore, as the total
consumption expenditures for recreation increases be¬
yond the $12.2 billion mark of last year, it
mass

may

be

assumed

that

entertainment

in

1956, meaning thereby

shipments and profits

our

and

Treasurer,

Insurance

Company

recent

years,

windstorms

extended

was

confronted

-

with

pro¬

coverage

loss ratio.

10%

In addition, fire
losses, up
nationwide, increased the loss

ratio

on

.

straight fire business.

Also

in

1956, the casualty business was
unprofitable with rising loss ratios

in

claim

costs

best
did

Seldom, if

fire

and

while

claim

remained
not

ever

casualty

absent.
in

ciation

1956.

morning programs—the first increase in network
in years — which signifies the
increasing
importance and value of network radio as

personal

of

high

a

tions to

rates

national

better

business, although spared the devastation

smaller

in

over

in

be

GOODSPEED

Accident

provement

point to a resurgence in network radio. Effective April
1, 1957 the ABC Radio Network is raising its rates
radio

The fire

hurricanes

offset to the

(as compared with
stations across the

anticipate

we

will

During the year 1956 the fire and casualty insurance
industry suffered very unprofitable underwriting experi¬

as

major advertising vehicle.
At the same time, radio
shown
stability and strength.
For example,
in
first

and

business

both

Vice-President

noticeably

has
the

excellent

lines

so

un¬

actually in¬
before, have
simul¬

unfavorably,

consequently, the expected benefits
of multiple-line
operation were

by the
by ABC-

improvement

the

OUght to be better.

Goodman

taneously developed

television programs
public and the me¬

continued

in

The bituminous coal production out¬

the

has

network,
upgrading

is

business

machinery for bituminous coal mines.

crease.

Television's accelerated development
as

principal

manufacture of underground mining

rise

materially

force

GOODMAN

E.

Our

frequency
at
changed if it

and

medium, having suc¬
passed through its final
an
electronic innovation.

cessfully
stages

gen¬

a

particularly apparent in the auto¬
mobile lines, caused
by a continued

Television, at
emerging as a

communications

cover¬

•

WILLIAM

ducing

1957 should be

mass

mass

more

President, Goodman Manufacturing Company

numerous

foundation.

same

in
be

erally expanding economy, mass entertainment industry
every reason to regard 1957 as an important year

of

being entertained away
the home, the motion picture
industry should approach a sounder
the

will

has

ence.

GOLDENSON

of

mature

potential

age

a

entertainment

economic

of

broaden television's nationwide

to

as

boom and bust.

Broadcasting-Paramount Theatres, Inc.

general,

flected

increased

wide

established

homes

create

new

.

so

an

President
American

true

and provide the public with the best service.

sur¬

part in this battle against inflation by doing all we can
our end
in keeping prices down and resisting price
increases all along the line.

some

territory

markets
age

probably

customers

rounding their particular areas.
a whole should continue to show

are

its

of

coming

strong growth and

recognition,

residential construction fall off in

demands for goods

electric

as

2,400

10

6% higher than during the previous
year.

Population

ances.

and

and

This

firmly established by the allocation of channels in major

at

TV

Hartford

of

expanding, the probabilities

new

parts of the country,
svere

With

year.

into the area and others

that

has

'

surrounding towns, between 2,200
are

households

own

fulfillment

the

to

The large retailers, like ourselves, can play an important

a

married

improving.

and

1956,

will

the

serious inflation which could result in

well

increase

programming

advertising

slightly better sales poten¬

entertainment

the population of the territory served
like that of Connecticut as a whole, has

average

an

the

years.

the

in

The big problem that
faces retailers, as well as the nation generally, is the
danger of inflation.
The government, and agencies of

sirous

Light

tinue

of

should offer at least

from

Hartford

The

At

upgrade

to

efforts

general

depart¬

The first half of 1957

than, the

attract

to

an important year in the
industry.
Largely through new
competitive patterns, and with good box office pictures
which can draw a large segment of the
population de¬

1957.

a

the

increase in department store sales.

mass

R.

In spite of the slowing

areas

continue to
Gimbel

A.

Bruce

their shopping lists, and this should
tie reflected favorably in our -formula feed business.
In
all, I would say that we are looking ahead to good sales
and

or

suburban

tein foods high on

volume

good

tial

Housewives continue to put pro¬

flour.

and

as

of expenditures in the

spending.
Prospects for

resumed in

was

returning

ment store.

downtown

relatively

coming year, I do not look for any
appreciable
upsurge
in
consumer

with

greater por¬

advertising expenditures. In combination
rise in the number of television set purchases
these

of

tion

the part of department stores gen¬
erally in competing with all types of
retailers, renewed vigor and public

expect

can
a

should continue to receive an increasingly

on

optimistic in its plans for ex¬
in the coming year. Con¬
disposable income is at
an
all-time
high, reflecting peak
levels ~of
employment
and
wage
I

well maintained theatre

closer

dren's
Wear,
Women's
Ready-toWear, and Home Furnishings have
generally been strong and with the
advent of a more aggressive attitude

pansion

to

convenience, it is the well located
that fits into this pattern.
Because of these conditions, dispositions of less desirable
and less economically efficient theatre properties have
been made over the past years and are continuing with
the ultimate view of retaining those theatres which have
the inherent characteristics for profitable operations in
the present as well as in the future.
The upward trend predicted in advertising expendi¬
tures should include a proportionately greater share of
the
total appropriations for broadcasting.
Television
of comfort and

mum

and

communications.

latter part of the Fall Season last year, the
second half will probably equal or
exceed the second half of 1955. Chil¬

sumer

While

that

;

GIMBEL

A.

pears

rates.

appears

year.

strong forward sales push in 1956 which lost some

tinue for all of the calendar year 1957,

consumers

standpoint it

every

good

President, Gimbel Brothers, Inc.

We are currently experiencing very high
levels of
employment and business activity in general. Business
spending during the year just ended set a new record
—$35 billion—up 23% from the previous peak in calen¬
dar
1955. It seems
unlikely to me
that this rate of growth will con¬

the whole

su¬

presented- in theatres offering a maxi¬

next three years.

down in the

on

increasingly selective public demanding

an

Radio should also increase its share
expenditures in 1957.
v
Along with the general upgrading in the quality of
the programming, television's unparalleled
ability to
sell goods efficiently, plus a greater realization of its
unique public service values, will bring the medium

Mills, Inc.

although industry

With

perior pictures

quality, the general efficiency and effectiveness of tele¬
vision as an advertising medium can be expected to con¬

a

S.

despite competition from

other

■

ahead of this ever-increasing demand for
electric service, our company has more than doubled its
investment in utility plant since 1948, and the present
total will be increased by more than one-third in the

momentum

PAUL

Thursday, January 17, 1957

large audience for them
leisure • time activities.

and

and

r

-

.. .

keep

To

bank

earnings in 1957.

1957. This
year, has

pushed the annual peak load of the Hartford Electric
Light Company—Connecticut Power Company intercon¬

The full effects of the rising demand for loans

expected.

reflected in the

relatively high use of electricity that has long character¬
ized our residential customers.
Last year their average
annual

Chronicle

Commercial and Financial

outlays

will

logically
rise

ac¬

cordingly.
If the supply of
top quality motion pictures is forth¬
coming from the producers, there will be a receptive

Continued

investment

L.

M.

Goodspced

im¬

earnings

provided

a

partial

underwriting loss. However, the large addi¬

surplus in 1954 and 1955 from unrealized appre¬
stocks

on

owned

Consequently, in

will

be

noticeably

many cases

lacking

in

policyholders' surplus

will be down in 1956.

In the light of these
developments for the year just
closed, let us now consider prospects for 1957. First as
to premium
volume, a continuation of the rise is to be
expected if, as most economists seem to anticipate, the

American
new

economy

continues to

expand

high in Gross National Product.

years now the volume

by attaining a
a
number of

For

of

premiums written by fire and
casualty companies has increased at a faster rate than
G. N. P., and in 1957 the rise
should be at least propor¬
tionate

to G.

continue

to

N. P.

be

It

is expected

that competition

will

exceptionally keen.

Underwriting experience is much more difficult to
anticipate. The casualty business should have the benefit
of higher rates on the
automobile lines, particularly
for the important auto
bodily injury coverage.
Rate
increases have already been
granted in many territories
while in many others
higher rates are likely to be put
into

effect early in the
year.
As these rate increases
translated into higher earned
premiums, an improve¬
ment in
underwriting results should be evident provided

are

that

rising claim

costs do not

nullify this benefit. Claim
year almost without
exception
leading the sporadic rise in rates and
cyclical development of experience in
automobile coverages so evident
in recent years.
One
costs

have

risen

from 1945 to
date,
thus creating the

each

be

. .

.

The Commercial

and Financial Chronicle

conclude, however, that the year 1957 should be

must
one

Number- 5604

185

Volume

of improvement in the casualty lines although it may
1958 before the automobile business snows a reason¬

profit.
The outlook for fire experience in 1957, as in any year,
is heavily dependent upon the wnims of nature.
Any
repetition of the many windstorms or the return of
devastating hurricanes would obviously produce unfavor¬
able results although higher rates for extended coverage
should help to offset some portion of such developments.
As to straight fire business, little rate relief seems to
be likely so that a relatively high loss ratio must be
able

must

spend

(273) 1 77

more

and

more

of

our

earnings just to stay

And

we

growth

of

mention expansion.
must expand, if we are to keep pace with the

country.
As our population moves up¬
ward, the public demands more and more steel, and our

industry is well
More

and

more

aware

and

to

pay

shareholders

our

new

a

fair

return

on

confronting both fire and casualty
insurers
is that of expenses. More efficient methoiis
must be found to counteract the persistent ri^fedn cost
of operations, of which wages are by far the most im¬
portant element.
Improvements in data processing
provide some hope for important savings in the longer

peak of about eighjt or nine cents on the sales dollar are
now being squeezed
tighter and tighter.
Despite these problems, Armco is moving ahead.
struction

annual

work

Con¬

completing will raise our
steelmaking capacity to 6,222,000 tons by midwe

are

now

of

capacity

expenditure

For

generations past steel has

been the backbone of

part of our daily living.
m-O

Continued

recent years.

underwriting earnings should improve
continued rise in investment income, total

summary,

be better in 1957 than last year. The
policyholders' surplus will be largely governed
by the market action of stocks owned.

earnings should
change in

GOODRICH

W.

PAUL

President, Chicago Title and Trust Company

fifty-six was an active one for
with greater gross income than the previous
year but also with higher operating costs as has been
typical of most business enterprises .
Nineteen hOndred and

our

company

will

factors that

National

con¬

future economic

tribute to long term

growth of the country as a whole in¬
clude the trend toward larger fam¬
ilies and an increased rate of family
formations that is

apparent in popu¬

lation statistics,
science

the contributions of
technology which will

and

stimulate

the

*

.

desire

for

America's

and

new

industrial

better homes, and

the substantial im¬
transportation

in

provements

heart

methods.

vi

t-r < «

These arednfluences,which will be
active

throughout the entire country. \
When you also consider some addi¬
tional factors at work in the Chicago.,

••>

fKv.W.v^

Paul

W.

.W.

v

.

w.'.

£

y» xi^w .vov<x<>o- • "

Goodrich

have reason, I believe, for
good expectations in this particular

area, we

region.

The market for

struction
than in

continues

new

be

to

housing and industrial con¬
in the Chicago area

stronger

Construction of the
roads
highways, commercial expansion and civic im¬
provements all point to substantial long term economic
St.

most

parts of the country.

Lawrence

and

the Cal-Sag Channel, toll

Seaway,

new

in

growth

this

region.

As for the real estate market

specifically, it is evident

that the

present shortage of mortgage funds could cur¬
tail somewhat the total volume of new home construc¬
tion and sales.
Moreover, in common with all business
enterprises, volume and earnings in the coming year in
the real estate field may be stronglv influenced bv un¬
foreseeable developments in national and international

affairs.

the banks of the Wabash and Ohio Rivers two

On

history making

450,000-kilowatt electric power units will soon rise. Seventy-three per¬
GRAY

L.

R.

At

Armco,

and sell

we

more

Almost

before in its history.

indicator points to a record
for steel production was 1955,
industry turned out' 117
million tons.
In 1956, the total was

economic

The top

year

when
>.■

„

the

about

:

115 million

we

look for steel

tons. But in 1957,
production to break

1955's all-time record.

the years
emphasis on research in
our industry will continue to mount.
The constantly rising cost of making
steel is spurring the industry to invest more and more time and money
in
the
search
for
more
efficient
methods of production. Never before
in
history has there been greater
concentration
on
the development
Throughout 1.957, and in

ahead,

*

'

the

production
Gray
processes. Armco research and engi¬
neering staffs, as those in other comanies, are working hard on methods which will be
ither more efficient or
require less capital investment.
We feel that some of the
production methods under
x peri
men t
today will eventually become standard operthig processes and help to reduce our steel making costs.
-

R-

of

less

simpler,

as

given

our

serious

as

industry
each

a

year

problem

which

its roots inithe "horse and buggy"
revisions of our tax laws which do not take
5is rapid inflation. We are not
5

set aside sufficient funds from




is becoming

depreciation
into account

a^le, under present law,
depreciation allowances

^ replace the. equipment we are

natural resources, and the
enterprising people are but a few reasons why

Plenty of low-cost electric power, abundant
skill and efforts of an

America's

leading industrial companies continue to settle and prosper

in this area.
As

part of our current

electric
area

is

$700unillion expansion program these giant
the even greater growth this

generators will play their part in
experiencing.

AMERICAN

GAS

AND

Appalachian Electric Power Company
Michigan Electric Company
Kentucky Power Company

ELECTRIC

Ohio Power Company
Kingsport Utilities, Inc.

Indiana &

[an

•

SYSTEM

Wheeling Electric Company

Serving 2321 communities in these great states:
Indiana • Ohio • West Virginia • Virginia • Kentucky • Tennessee

in 1940

passes.

It has

provide dependable, low-cost power to the dynamic seven-state area
it serves. The home of 5,000,000 people, this area reaches from Lake
Michigan to North Carolina.
Since our founding, fifty years ago, we have pioneered developments
for improving service and lowering cost. These developments, coupled
with increased usage, have kept the cost of electricity on a downward
trend, while the cost of most other products and services has risen.

costly

L.

The world-wide trend of inflation which began
Tore

larger than any units in operation today, these generators are
example of the American Gas and Electric System's effort to

another

industry will make

expect that the steel

steel in 1957 than ever

every

year ahead.

cent

Corporation

President, Armco Steel

wearing out.- Thus we

For

a

copy

of

our

1956 Annual Report write to Mr. W.

Dept. B American Gas

ha&

economy.

expectation in 1957. With the stock market at its
would seem unrealistic to assume
much additional unrealized appreciation on stocks owned.
On the other hand any reversal of the upward trend in
the American economy could produce lower stock prices
and offset some
portion of the unrealized gains of

a

that

.

In the future vast tonnages of it will cor-!;
tinue to be used in automobiles, homes, railroads, ships,'
and the thousand and one products that have become
our

relatively high level it

that with

America'#,
in 1957'

.

able

In

in

practically rebuilt.

Further increases in investment earnings are a reason¬

so

Jan. 1 of 1956.

will continue the pattern

V

future.

on

confidence

our

increased about 80%,

their

capital, and eventually pay for
Our profits, which reached a

facilities needed.

new

over our

indication

our

Our steelmaking capacity has
creating almost 11,000 more Armco
jobs. This has been sound growth and we expect it ti>"
continue.
'
been

To keep
growing fast enough to fulfill the public's
wants, however, we must continue to earn profits suffi¬

cient

is

plan to spend about $120 million
improvements and expansion.

This

be built at greatly inflated costs.

investment, attract

21% increase

kept Armco growing faster than the industry as a whole
since World War II. During this period our plants have,

rolling mills will have to

the

range

for

of its obligation to meet that need.

furnaces

a

further

A

future

our

anticipated.
Another problem

1957,

even—not to

J. Rose, Vice President

and Electric Company, 30 Church Street, New York S, N. Y.

v

^

on

page

j

a

Financial Chronicle

The Commercial and

78

..

Thursday, January 17, 1957

.

(274)
r

there

Yet

also

are

higher

77

Continued from page

will

steels which

new

many

true

are

There

,

everywhere; stainless steels are also, making possible
experimental gas turbine engines that at some future
time may well displace the conventional piston engine?

up

the

in the world's automobiles.

Armco,

always in the past, is in the forefront of
We have faith in our country, our

as

developments.

these

and our company, and the new
see ahead underlie our confidence.

industry,
that

we

of steel

uses

'/%

Nemours & Company

President, E. I. du Pont de

-

high level of general business activity points to
a good year for the Du Pont Company in
1957.
When general business is good, the chemical business
is good. Nearly 95% of our products are sold to other
industries, large and small, for
The

"

further
Sales

and

earnings

the

of

due
prices and rising costs. The
physical volume of production re¬

It

C.

Greenewalt

H.

and

less

better products.

costly manufacturing processes

well

as

as

new

ahead is reflected by the
company's expenditure of more than $160 million for
construction in

While

1955.

over

This

1956.

much

is

more

this

of

than

25%

a

increase

is

construction

a considerable portion goes for replace¬
improvement of existing facilities to get better
quality, greater volume, and lower unit costs.

large

a

over

standard

the

of

v

cost

George

and

'«|,

employment

even

an

of

;

out

at

capital.-

in

the

upon

that

private
debenture issues

through

financing

vote

of

confidence

in

capital

has

the

air

It

War. It

seems

important

to

this bears

me

contributions

velopment

in

impressive witness to the

scientific

of

research

and

de¬

"

our

afford to be confident

gross

GROSS

Predicting the

air

industry's

because

delivery

of

solid

schedules

business

for

the

already
established;

already

in

*

isn't

1957

upward.

same

police
uhave little

action,,

or recession
I'll explain

effect.

were

established

down

were

in

cans,

will
L.

J.

gressive

approach

,

that

is

tionary

it

tensions

of

Aircraft
Gross

lead

to

times

in¬

revolu¬

a

improvement,

or

enough
production to influence

E.

trends

defense

bring
change
in

sharp

Robert

natural

a

would »take

worsening

world

has

international

to

characteristic

dustries,
in

business

our

;

a

output.

time

re¬

quired to fill the production pipelines
with necessary components furnished

by thousands of suppliers—are long.

Our 1957 deliveries

would

ticularly

backlogs
significant

are

near

when

an

you

peak.

all-time

consider

high
what

—

par¬

creates

Backlogs have two principal components. The dollar
of the first doesn't
change much. It represents
the cost of continuous
provisioning to keep air wings
and
commercial
fleets in
operation — * replacements,
parts, and reorders.
The other part has increased—the value of
in the aircraft market
place.

spare

aircraft

are

with

orders for

new

wares

and

new

designs in commercial prop-jet and jet transports.,
The high dollar volume of these newproducts
dicates
later

that

will

sales

we

will

Seventy-five percent of
log, for example, is made
,

levels

1958,

1959,

-

in¬
and

approximating "or

company's airplane back¬

of four

new

aircraft types.

entirely new designs, and the fourth, the
Model 1649, incorporates features of
speed, range, and
payload never previously available in our Constellation
are

series.

growth
the

Summer

the

phenomenal
eight-month

80.2%,

we

entering

have

finished

a

good

production

year,

we

another

looks bright.

year of high
deliveries, * and the
How about industry profit*? Prob¬

ably they will not show




any

increase

over

1956

despite

bottling, compared

Paramount

of vodka

„

this

with

23.7%

the

was

rate

recorded 'in

figures

the

nevertheless

gallons

the

over

earlier

year

rise

preceding

•

gallonage gains.
*

Cordials
was.,

and

.

,

brandies

showed

.

V

;
'

facilities
are

grouping

and

the

need

continues.
for

This

increased

means

home

that

the

entertaining

continuing to develop concurrently with the financial
to fulfill- them.

means

We

are

experiencing significant changes in the Ameri¬

"

■

already au¬

property improvements

baggage and mail

cars, and 5,500 new freight cars of various
types. Some
of the freight cars
may not be received until the first
half of 1958 under

present delivery schedules.

growth of distilled

spirits. Individual incomes will continue high. The trend
to suburban living and the
growth of a prosperous mid¬

original
v.-'/ ' ■ •

upon
-

a

This reduced Jin bottling

is for continued sales

based

replaced.

new
retarder-operated classification yard in the plan
for modernization of Corwith
Freight Terminal at Chi¬
cago; 22 additional diesel units, 71 new

increases from January through August to
1.1%, amount¬
ing to less than 200.000 gallons.
The outlook

by depreciation

equipment and
represent a contimmBon
of this program in 1957. The,authorized
program includes
273 track miles of new
rail, all to be continuously welded*
major

,

months of 1955.

provided

The Fanta Fe has
spent large sums in modernizing and
improving its plant to keep abreast.of growing" transpor¬

the* ofi.lv

same

are

tation demands and substantial
expenditures
thorized i'or further acquisitions of new

year.

-

-

an

costs of old facilities that are

of

moderate-gains, while

the
'

with

amounts

product to show a decrease 'in the
eight-month period.
- " "
Bottling of gin during the key months of July and
August reflected
a
sharp decrease of 17% comoared
rum

for

commodity

,

months, r
a

certain in .winter wheat

volume

greater requirements for capital expenditures
involving replacements at prices much higner than

continuing

showed

seems

more

there

Although vodka volume during
increased at a tempo slower -than1

months

decline

important

inflationary pressures com¬
inability under regulatory policies to get
nearly in balance with higher costs. Even a
rate increase, which
merely absorbs higher operating
►costs,-would add nothing to the net income on which
bined

rates

.

a

a

an

the squeeze that results from

sales.

3,500,000

or

for

reason

program,

Continuing increases in the costs of wages, fuel, ma¬
terials and supplies and payroll taxes. are placing the
railroads in a position of waging a
strong fight against

Vodka leads all other domestic
spirits in percentage and

dle-income

Now,
future

earlier.

with the

my
up

in

record

remain

high—at
exceeding this year's.

Three

a

wide range of missiles, -combat
advanced performance, and- new
a

domestic

Gurley

Fred

Santa Fe.

Non-whisky alcoholic beverages, increased their share
the
total
domestic distilled
spirits market during
At the end of August, they accounted for
26.6%

the

Pushing this backlog to

high

bank

return
'

cov¬

The overfa-ll volume of Santa Fe.
is quite -naturally geared to

production,

1956.

of total

•

volume

new

of

fair

a

their investment.

on

planes and missiles ordered 16 to 30 months earlier.

Aircraft

permit liquor companies to realize

1

population, business and industry in the West and South¬
west during the coming year.
The outlook for agricul¬
tural production is favorable in most of the areas, al¬
though, because of the effects of drought, and the-soil

bonding period controversv between

Congressional relief action, would statoilize .the liquor industry in 1957 and permit all com¬
panies to sell their products at fair prices. In turn, this

all

approximately

ing now to suggest any significant
change in the record of growtn of-

ag¬

distillers,, with

are

the railroad, and there appears noth¬

<

A solution of the

of service

severe

from

the prosperity of the area served by

.

to

created.

revenues

traffic

sales, profits of
plateau during 1956, due mainly to problems created by
excess
inventories
reaching
the eight-year forceout
bonding age and the price-cutting competition this

aircraft

1957

the

—

about

suffer "from

fully by rate-increases for the
services performed.'.

and

more

a

K

ered

merchandising
by American distillers.
Despite the increase in gallonage
many
distillers-were down or on a

Gunson

•»

in, the Soutnwest wnich

to

Gross

ing the business have not been

their growing coqeern with the

f home entertaining, and

this

Fe

is

For the

requirements of gracious living

Santa
;

above 1955, although net-income
likely to be about 10% below last
year because higher costs of conducts

up.

slightly.

'

-.3%

pre¬

were

areas

classes

.

While

GURLEY

of 1956.-Economic conditions in Santa Fe territory

drought.

flected record incomes for all Ameri¬

odd situation:

sensitivity

G.

generally good throughout 1956
exception of some agricul¬

continue-

sales

231,000,000 gallons.

trends

meas¬

the

tural

bonds, and blends of straights, 41.4 %.''
The .general -increase in sales re¬

»

manufacturing
sales
approximate $9 billion—10%
higher
than
1955 .and -somewhat
higher than 1956. Shooting war, cold
should

war,

to

as

product, -will probably be
Higher prices should account for
All three of the chief components

The Santa Fe Railway System looks forward to a con¬

enues

exceed

liquor

1957,

tinuing high level of business during 1957 and expects
that gross revenues will equal or slightly exceed the rev¬

-

first eight months the percentages of
sales were: Blend, 58.6%;. straights,

and

Aircraft

•

to

years;*'"7" Straights

Blends

We know
hand

.

in

national

FRED

Domestic whiskies in 1956 continued

►

prospects

Sales volume will continue

when

1946,

vious

difficult.

■

of business

President, Atchison, Topeka and

with

is .certain

p/.i.

,.

an
increase—namely spending by consumers;
business; and Federal, state and local governments,

200,()()(),()()() gallons for, the first time
since

Chairman of the Board, Lockheed Aircraft Corporation

this

-

will show

«

Consumption of distilled' spirits

the future.

over

ROBERT E.

are

the.

about half of the gain.

When all the figures are in, 1956 will have the distinc¬
of being the second
best year since Repeal for ~

amounted

the

by

-

,

close to 4% above 1956.

t

liquor sales volume.

•

vigorous revival'

no

future.

total dollar volume

a

Products, Inc.

was:

declining trend throughwe may see a leveling-of£

a

current rate, though
near

compared

as.

The other laggard

1956.

,

ured

L. J. GUNSON

,

are

the

1955.

The

tion

expanding economy. With industryr
placing increasing emnhasis on research, we

generally

in

million

5.9

likely in the

industry by the public.

President, Publicker Distillers

was:

1956, is headed for better times/
new
cars ? should
be at

Railway System
>:

is that

Output :of.

other

and

represents

are-

outlays for new plant and equipment, which were by far
the largest in history. A further rise ;• of 5 to 10%
in
capital expenditures is probable-in 1957, but the
gain will be lower than the 22% advance for 1956

available

been
loans

bank

and

heartening.

is

new
*

industry./ which

least 6.5 million in 1957,

these

who is not affected in some way by what
industry produces and its ability to meet national

fact

a

We

of the two principal-weak spots:

one

which was in
most of 1956. In this field

around

up

1957.

The most conspicuous strong spot in 1956 was business

;

nation

The

Gund

about

seems

profits
Lockheed and several
effect

In my opinion, the introduction of increased private
capital to help finance our capital additions and develop-/
ment of new products is a good thing. There is no person

the air

>

home building,

working

our

pronounced

more

,the automobile

/

with

the- V

that domes¬

hang

year

.

And

war/

One .reason'for confidence

.

in

requirement—to maintain a steady
improved products—also demands the

possible

creates

of

living for all Americans has risen
sharply in the decade since the end of the Second World

can

part

the

for-

=

are

.starting off with industrial - produe->
tion at a new peak. Moreover, many
manufacturers % have* a > Very* large
(backlog of orders-which will keep.
them busy well Into. 1957."%%•

.

60-month period.

a

full-scale

of

record

or

The

'

■

business-, will-

tic.
,

-

great

new

ex¬

panded capacity,

ment

of

commercial

for

• •

ago

break

emergencies.

Our confidence for the years

1957

V

present iqdicatiohs

over

price increases to a mini¬
the Du Pont Company has in¬
heavily in research seeking improved technology

......

■.

Avyear

plant expansion programs.
other major companies currently develoning new com¬
mercial models are having to charge off this research
and development expense- during
this critical era of
capital asset expansion.

necessary

and

■,v

,

•;

:

than

prices.
Higher prices are almost inevitable
when
wages
and other costs rise
faster
than
productivity. To hold
mum,

single item.

a

other

fullest

trial

GEORGE GUND

^

of these new
This provides
advantage but necessarily reduces the amount

tax

flow

1956 averaged 4%
below our 1955 prices, in contrast
to a 4% increase in general indus¬

to

way

.President, The Cleveland Trust Co., Cleveland, Ohio

now

amortize

Our

products in

the

-

having to acquire capital assets at a rate
just/a ► little faster than we can afford.
There is no '
novelty in this situation.
Most older industries have A.
faced this problem at one time or another. But today's
experimental and production tools adaptable to aircraft
work come high. ,It is not a question of buying tland,
buildings, and a few multi-purpose, machine tools ^—
things that generally last for many years. New machines,
computers, and laboratory equipment—often made expresslv to our order—can cost hundreds of thousands:
are

of profit we show.

high, somewhat higher;' in
fact, than in 1955; but prices of Du

vested

We

some

mained

Pont

Ouf1

spend large sums
maintain these :*
capacities at levels necessary to insure our survival:

specialized tools

to lower

which■* point

living

being^one of the-best years in liquor industry history/

I ventured to predict that 1956 would >
be
bigger year-for business than 1955, which proved 1
to be' the case. Now -I am -going to say ;the same
thing'*
•Other factors that affect our industry- are- perhaps*;
ab,out-1957. Admittedly, the> crystal ball is murkier than- %
inherent in yourrg and growing industries.
We know
':u ' •-£♦>'< ,:V
usual this time because'''of
foreign V
that
our
future
growth
is
directly related to our
uncertainties. .' But, - whatever
theircapacity for invention, innovation, and mass production. ,
j t* outcome, I do hot -expect any' x>ut~" i
We must
to create and

We

the

of

pattern

can

■

-

government has asked several major
companies > for refunds from 1953 earnings.
~
"

com¬

for 1956 will be under
record peaks reached in 1955,

•

The

of dollars for

processing.

pany

-A

.

One is renegotiation."

several reasons:

are

"excessive."

•

GREENEWALT *

CRAWFORD H.

..

companies^

individual

although

—

from the pattern.

profits for each year are subject to review,. Then several
years after we earn them, we may be required to refund ■
amounts
established
by the Renegotiation , Board
as*5

"glamour metals." New heat-resisting stainless steels are
displacing other materials for supersonic aircraft and

guided missiles; modern buildings with skins of gleaming
stainless or colorful porcelain enameled steel are going

volume

sales

vary

This reflects
-

our

the soundness of

full

our

too, that there will

condidence in the future and in
basic economy. We have confidence,-

a wise and sound
treatment of
competitive situation in transportation through appronriate modernization of governmental
regulations, all

come

the

in the interest of
continuing the vitality of railroad serv¬
ices which have beeln and
always will be so essential to
our

national defense and the
commerce of the country.

&

a

Number o604

185

Volume

The Commercial

. . .

and Financial Chronicle

S. HALLANAN

W.

Among development
in 1956

Plymouth Oil Company

President,

were

of

to believe that, measured in
production, capital expenditures and number

wells

drilled, the petroleum industry will establish

is every reason

There
terms
nf

°eJ

during 1957.
Unless there is a substantial in¬
crease in the price of crude, how¬
ever,
these new records will be;
achieved at the expense of severe
impairment of the industry's ability
to meet
the normal expected in¬
crease in demand in the foreseeable
future, not to mention
any emer-.
gency demands arising from an ex¬
plosive world situation.
ltcorus

steel

projects

expander

rings

parts for the radiator
Another

cars.

muffler for

on

steel

being used

are

Diesel

on

high
food

capital

than

year

predictions

for

is

the

on

pistons
1957

some

stainless

steel

steels

expenditures

automobile
in

the

better

based

continued

year;

chemical,

a

is

optimism

paper,

and

■

enjoyed

791,000 net tons.

Electrical

year

steels

5%

a

The

with

was

estimated

special

are

increase

1956

year
-an

company

grades

is electrical

over
an

year's

all-time

830,000
for

last

use

net
in

high
tons.

motors,

generators, transformers, and other electrical equipment.

preservation of free institutions
the tyranny of Communism.
The semi-paralysis of Western Eu¬

It is expected that in 1957
W.

S.

there will be

tonnages produced by the industry.

tjallanan

and

uses

tool

steel

ous

which

parallels steel
The

as

company

total

a

is

an

to

of

was

128,000

than

numerous

and

generally

industry

domestic

the

If

enemies

receives

adequate

an

!

zirconium, and melting and processing of this metal
It is expected that interest

production will grow in the coming years. Zirconium

is used

primarily in the atomic energy field.

greater

even

The growth of the

Continued

v

on page

are

and

long overdue increase in crude prices, it can meet the
demands of the uncertain world situation.
If such in¬

it will be called upon the deplete its
capital structure, and thereby

is denied,

crease

weaken its

and

reserves

imperii the national defense and the public welfare.

opinion is

that the grim realities and the simple
will bring some measure of relief
encouragement to the domestic oil producer early

My

involved

economics
and

If that

1957.

in

take

to

tion

a

develops, the industry will be in posi¬
long step forward in the expansion of

productive facilities and in the maintenance of adequate
reserves.

E.

HANLEY

J.

President, Allegheny Ludlum Steel Corporation
The year

industry

1956 will be looked

of stainless

increase

in the stanless steel

on

the break-tnrough period for the 200 series

as

steels when

phenomenal 850%

a

over

the previous

that

noted

was

1956

will

year.

be

production
This means

remembered

the yeah when a substantial
of

stainless

stretch

to

supplies twice

without1 sacrificing

far

as

There

nickel

as

number

learned

fabricators

scarce

quality.

1,886 net tons of the 200
series produced
in 1955.
Tnis in¬
creased to more than 18,000 net tons
for

were

the

neered

year.

..The

200

pio¬

series,

Ludlum Steel
Corporation, is the c ro.nium-nickelmanganese family of stainless steels
by Allegheny

which

one-half -the

utilizes- about

nickel

content

cf

the

300 series.
E.

J.

fSO.OOO
is

the

continued to
produce at a near record rate during
the year and
is expected to" ship
finished mill products for 1956. This

net tons cf

1%

industry

below

last

the

curtailed

by

all-time

when

year

shipped. During the past
were

Nation-wide

-

.

record

686,000

high set

tons

net

by

were

a

for

53.6% of volume, as against 25.2% for consumer
products, and 21.2% for all others. Stainless steel sales,

the

survey

During

indicated,
the

sensitive to capital equip¬

are more

than to

heat

shipments

stainless

of

There

was

steel

a

decrease

of

22%

in

of cold
shipments

shipments

This product made up 39% of the

ef the

industry in 1955 and totaled about 31% this year.
Much of this
product goes to the automotive industry.
Automobile production figures indicate that 1956 will
he just
under a six million car year, or u 26% drop from

Mst year.

While the automotive business dropped in 1956, growth
ln

Within

other

creases

of

areas

were

the

noted

offset this decline. Inw
shipments to the aircraft

industry

in

mill

a

rosion

of 18 years, Kennametal
innovations in metals

span

has created many
.

.

.

revolutionary tech¬
.
.
. helped
industry reach greater heights

pioneered

many

the

of

productivity.
Among these developments are

the best in

grades of hard tungsten carbide for metal-

industry
sales

and

vacuum

1

133%.

rose

Allegheny

Ludlum

in

experienced

production.

remelting facilities

induction melting furnace
Substantial
mto

atomic

and food

tonnages
uses.

The

of

good year both in

consumable

The
were

came

a

ing wood; and hard, strong

machine

com¬

ponents of Kennametal that usually last
100 times as long as steel. Kentanium,*

development, is a hard
titanium carbide for operations where high
another Unique

temperatures

(1800°F. and above), and
and abrasive

steel

are

production.
now going

chemical, pulp and paper,

textile,

handling industries ordered more stainless to

expand their
plants and facilities.




ditions

are

where great
to

con¬

strength, hardness, resistance
impact,

abrasion,

cor¬

look

we

a

forward,

feel

sure

that

with

their
even

and

Kentanium

greater roles in increasing the productiv¬

ity of American industry and in helping

provide
not

better

a

If you

way

of life.

"metals" problem, why
consider the unusual properties offered
have

a

by Kennametal and Kentanium? If you
give

us

with you.
as

your

metal

details, we'll be glad to work

Perhaps Kennametal could serve

"Partner in Progress." Kenna¬

Inc., Latrobe, Pa.

♦Trademarks

INDUSTRY

AND

KENNAMETAL
...

we

unique properties will play

many

will

encountered.

deformation,

As

Kennametal

increased; a vacuum

into limited

stainless

electrode

...

acceptable.

working tools; cutter and drill bits for
modern mining machines; knives for plan¬

Many other Kennametal hard metals
have been created for specific applications

43% increase and those to the electrical machinery

en¬

field where only
quality and dependability is

applications

many

tad

which

exacting requirements in nuclear

ergy

had a 58% rise over 1955 shipments.
Industrial machinery and capital equipment shipments
a

are

columbium and tantalum metals to meet

where severe corrosive

industry

combinations of these

or

required. More recent Kennametal de¬
velopments include high purity (99.5%)

American

resisting stainless steels, 21%.

rolled strip.

partner in industrial progress

a

niques in the art of tooling

automotive production.

plate
increased 58% over the
previous year; hot rolled bars
went up
36%; tubing, 29%; cold rolled sheet, 10%; and
year

Kennametal-a most unusual metal...

production and shipments
34-day strike.
year

Information gained in a survey of sales of stainless
steel by warehouses conducted
by the industry showed
that
consumption is more diversified than previous data
had indicated. For
instance, industrial end uses account

ment expenditures

facilities devoted exclusively to develop¬

ment, manufacture and application of Kennametal.

The stainless industry

Hanley

less than

familiar

more

closely

is continuing and broadening its work

tne saboiage of Middle East

our

tons

industry.

friends.

our

net

usually forecasts the level

petroleum reserves located under the shadow of

more

the previ¬

115,000 net tons

pipe lines, has awakened the entire free world to the
realization that there can be no permanent dependence
upon

uses.

of interest to the

about

come

increased materially in 1956.
and

area

from the

Communist guns and in an area where

large

year.

demand for tool steel

business

with

was

industry, with

the

by

being shipped this
The

190% increase for residential

In 1955 there

year.

shipped

a

market, another

11% higher in 1956 than it

company, was

of

principal product of the

which

production

the

dustrial

The

1957 will be

This

1956.

of

use
a

electrical manufacturer predict an 85% gain in the con¬
sumption of electricity from 1955 through 1960 for in^

processing industries; and continued good business

Another

from

use
of these steels parallels the
growth of the
electricity throughout the nation. Reports from

locomotives.

good

a

generally.

the vital importance of the
domestic oil industry of - America
ancl of the western- hemisphere in

completed

for. automotive

application

new

use

successfully

functional applications in automobiles.

Allegheny Ludlum believes that

nition of

rope's economy, resulting
closing of the canal and

and

stainless

crisis has brought recog¬

The Suez

new

>

Stainless

79

(275)

(Pa/CfcwA

<6n

(Psux/AJM

80

CO

(276)

:

-

Chronicle

Commercial and Financial

The

'

Thursday, January 17, 1957

...

-

✓

„

business. In 1957, it is expected that
10%> of total Lynch sales will be in automation equip¬

HAINES

J.

CHARLES

volume

by

will

this

and

1956,

in

divisions

enjoyed

was

all

the

continue

certainly

the first half of 1957, and most likely longer.
National Cylinder Gas is so well diversified now that
its
activities
reflect
expansion in
through

permitted doing more business on less order backlog.
Taking this business into account with the short cycle

spending for defense, highways, and
other • public
facilities
has
been

84%

in

at

backlog at year-end was suf¬
production at the cur¬

our

rent

Growth

of

•

rate.

Earnings

that

demand

were

1956

in

up

will improve

we

operating

in
metallurgical, chemical
and therapeutic fields was responsi¬
New

for

uses

increased
J.* Haines

Charles

excellent

It is expected

1955.

over

significant

A

aggressive

from

operating

greatly

building

the

we

ones

have.

the

As

V

Girdler

alysts

these recation agents

for

7

-

•

The

'

'

.

land

as

nothing

been

'

Harold H. Helm

National

Bank

in

concerns

a

good

a

for

one

our

It is

com¬

The interest of main¬

expansion to Hawaii remains

As long

confidence of investor

President,
The

HARVEY, JR.
Flintkote

The

continuing high

level

Company

industrial activity and

of

disposable income result in an outlook for 1957 that is
good for business in
most of the
fields in which

The

is engaged.

pany

pated that

Flintkote

Com¬

While it is antici¬

further decline in

a

unless

1957

it

credit

would

during

the

readily

more

are

Federal

home

is

owner

for

smaller

much

value.
occurrences,

Govern¬

promoting peaceful solution of international problems
been

most

encouraging. Our; Administration's ef¬
living standards throughout the free world

to be

are

commended, particularly the "Atoms-for-

program.

%•'.

•>

The prospect

pro¬

I. J.

Harvey, Jr.

With

have

as

with

1957.

the

Chemical

men

improve his existing dwelling.

and

to

constructive

a

hopeful regarding affairs abroad.- Our

are

finance.

more

tect

easier

has followed

of continued expansion^ in the national
economy and
in international trade < augers well for
Growing New York—the world's capital of business and

and

it

Board

Reserve

the

Peace"

inclined

finds

...

by all sectors of the economy—by management
pricing of goods, by labor in its demands for
higher wages and by bankers in the extending of credit
—is bound to spell a false prosperity with more dollars
in

have

these conditions and with less credit

the

1956.

ment's diplomacy and the progress of the United Nations

maintenance and repair work. Under

required,

retained earnings, and depreciation,

resisted

we

necessary

available

the high
geherate

monetary and credit program. Nevertheless, the dollar
will continue to lose more purchasing power if price
levels are allowed to edge higher.
This trend, if not

,

labor

Although

billion which they obtained in

$7

also

and

ahead.

money

forts to raise

level

year

likely that they will be forced, to raise as much
in 1957 from outside sources as the estimated

pears

in

consumer

in¬

nevertheless, this cash flow is not sufficient to provide
all of their capital requirements. It, therefore, ap¬

As new construction drops, more
sales effort becomes available at the

Its fittings are integral parts of some
of the first nuclear energy projects.
So are the welding
flanges and custom forgings of another NCG division,
Pennsylvania Forge Co. in Philadelphia. Forgings for
the nuclear energy program, power plants and defense
projects are expected to expand Pennsylvania Forge

the

cash through

activity.

equipment boom.

follow

belief that the heavy demand for money will

our

would be largely offset by increased
volume of maintenance and repair

the nation's leading producer in its field,
fully in the nation's plant and

will

Despite the uncertainties and unfortunate

this

that

inflation,

monetary

consequences,

for

of

new

restrictions

appear

proportion to the increase in

volume of business is enabling corporations to

residential construction will result in

eased,

cor¬

-■

continue

the

J.

of

Recognizing that the dangers of inflation still threaten,
the Government has pursued sound fiscal policies and

of prosperity for Hawaii.

year

painful

its

of

bidding

country,

the

of

productivity
all

demand

savings has
for funds at

evitably.

to destroy the

occurs

of

out

the

Hawaii,

of

Most Island businessmen in the retail trade

I.

continues to participate

further in

'

■

for chemical and pe¬

which makes welding fittings and flanges
of American industry which must
move
liquids through pipes at high pressures or for
long distances, faced the necessity as 1956 ended of
expanding its facilities further to keep up witbh*fastrising demand.
Its property area in Louisville was
doubled, in preparation for erecting new plant build¬
ings there. During the year a plant was build in Ridgetown, Ont., to supply Canadian customers.

sales still

'"J

capital, 1957 should be at least equal to 1956, which has

cat¬

range

Tube Turns,

'

i

looking forward to another good 12 months.

are

Tube Turns,

vast

I

higher rates of interest.,, This is a
healthy influence, for if the supply
of money is permitted to increase

HANSON

E.

should be

year

business

builds

the

"C

v

•

.

more

encouraging.

oils production. Girdler
plants for chemical and other industrial
processing, from its own designs or those of its clients,
and this work progressed successfully during the year,
with a large backlog of construction contracts awaiting
"completion in the new year.
for

.

of
supply

personal

'the

caused

V

The outlook for the major industries, especially

p-oleum processing and fats and

also

.:

the tourist business is optimistic.

<

special

coming

munity.

in 1956 to meet growing

increased greatly

were

demand

Turns.
for making

facilities

Company

'

•

and

porate

more

or

com¬

and Tube

Company

consumer

excess ;

available

the

over

with

couptry,

Girdler

•

20%

a

%

Honolulu

Rapid growth of the chemical industry, and steadily
rising runs of petroleum through refineries, have created
major expansion activity at the two NCG divisions
that have their headquarters in Louisville, Ky.
These
are

left for

this

sequently,

this

from

economy

K

President, Bishop

locations

75

at

gases

the

.

accumulation

reduction

cost

Indiana plant out of three

one

space

CARL

Canada and South America.
Seven
other projects,
expansion or new-plant building, are
under way. Still others are on the drawing board.
this

in

sufficient

expanding

ended

year

industrial

producing

was

pany

now

and

plants

/■-'
for

public projects has exceeded the
of new 'capitals Con¬

and

so

widespread program

a

gas-producing

new

have

National Cylinder Gas

that

has launched
of

have

them

for.

still

and

ability to sell

increase in production.

showing. %

products

our

demand

-

dustrial plants, and for other private

this trend in 1957 due to further,

economies

work is the

drogen

this

"

money

'

general, and development of new
programs.
for high-purity oxygen and hy**-

for

'

for

Demand

purchases, for the expansion of in-

uses

ble

expansion have been set,
figure, and government,

record

a

stepped up.

ficient for three to four months

for

1955.

of service parts,

sale

the nine months
ahead of those in the like

months of

show healthy increases; budgets for
industrial

'

ran

are

than $103,000,000.

more

earnings

factors

figures continue to

has

in
metallurgy,
in
nuclear
in petroleum]refining and in
many other basic industries.
Sales during the first nine months
Net

of strength and vitality is indicated for
in 1957.
Some of the contributing
the following: Employment and population

business

successful in attracting some business that
would otherwise have been lost due to delivery and it

steel,

were

Board

Bank, New York City

Another year

American

program was

power,

of 1956

the

Exchange

Corn

Chemical
■

During the last year, Lynch started building certain
of its repetitive products in both glass and packaging
on a stock basis in anticipation of customer orders. This

company

of

Chairman

type of

ment.

President, National Cylinder Gas Co.
Increased

this

with

H. HELM

HAROLD

Lynch organization

1956 to familiarize the

taken in

was

79

Continued, from page

our

counsel

Corn

Directors

and

help of the outstanding

Exchange

Bank

privileged

is

to

and

Advisory Board Members, and
splendid staff of devoted men and women, we

will

Perforating Guns Atlas Corporation of Houston, one
GEORGE W. HANSON
of the
fastest-growing of NCG subsidiaries,, suffered
from disproportionate overhead charges, brought about'
Treasurer, Atlantic, Gulf & Pacific Co.
by the great success of its methods, in 1956. This comTransport by water is the most economical way to
pany
specializes in service to the petroleum industry
move
anything suitable for such transportation.
But
not only
in this country, but also in Canada, " South
America and Germany, providing electrical and radio- ~ transferring oil or other cargo from large to smaller
activity logging of oil wells and producing tracts, and 4 boats or to, pipe dines because of .inadequate channels
well-perforating services. Demand was so great in 1956
slows distribution and adds to its cost.
\
/
.

to

play our part in such growth.. Again we continue
pledge ourselves to serving the best interest of our

customers

and

;

that much of the company's revenue went to train crews

Here

..

of

technicians

perform

and

these

provide

services.

with

them

With

equipment

to,

this

extraordinary ex¬
1957, the division expects to profit
from its larger staff and plant.
behind

pense

it

ELVIN

E.

President, Lynch Corporation
Lynch

Corporation

optimism

as

a

glass

serves:

automation

views

:

with

1957

conservative

growth year in each of the industries it

container

manufacturing,

Glass

by

container

the

1956

developed
mean

and

week

on

basis,

ponents.

5%

to

sales

part
in

the

of

glass

to

24

hour

60%

of

our

the

parts

and
a

was

and

industry

as

a

of

we

are

forecasting

1956, Lynch Corporation started

an

of
to

its

automation

special

a

1957 that is

the

.

.

Line

than

pipe

line,

the

provides for refineries in the
anchor

discharge part of their

in

a

new

a

The

.

depth

super-tankers

now

by

super-tankers

40-foot

with

day, will be built

a

River

harbors and

require

Delaware

Philadelphia

.

.

."

area.

Bay

and

.

anchorages must be

kept adequate for tankers and other

vessels

they

draft.

more

Who

vital

factors.

defense

This

measure

is

when

knows

troubled

a

world;

The

hotel

with

may

more

no

become

important

should be neglected.

its

But
it

to

World

Wars

special

keep
be

must

I

equipment

in condition

reasonably

II

and

to

active

of

was

The

meet

in

tion

equipment,

that

work

periods

is

are

are

that

Administration
of

awareness

eral),

and

is built for
it

to

Federal

waterway im¬

Unlike most construc¬
a

single

when

purpose;

remain

idle.

Slack

has

continuing

does

if

a

not

become,

aware

of

the

vital

waterway development.

slacken

fair, volume

terializes, the outlook for

(most of
of

our

our

work

non-Federal

years

If
is

projected

sons

by

the

larger

work

a

year

record

!

appears

been

for

one

to

improvements

■

to

<gii

properties.

Redecorating, re¬
habilitation, air conditioning, as well
as
general
modernization, reached
record
of

In

totals.

part,

as

*11
oJV'"

result

a

these

refurbishing programs, and
in
part through
the impact of a
larger volume of travel, sales volume
for the hotel
industry should exceed
the 1956 record figures
Sheraton

Hotels

are

by

some

1

iihifl

V

Henderson

Ernest

6%.

presently

V

mm

en¬

joying 2% higher occupancy and are averaging 9%
higher sales volume than a year ago. This increase iu

One
the

of

of

independent

course,

about

the

by

recent

of

of

sales

advances

the

Sheraton

influenced

adversely

any

additions

to

"

factors

expansion

which

hotel

have

enterprises

past

during, the

25

has been the reluctance of individual investors to
show much enthusiasm for
hotel company common stocks
or
debt securities.
There are several reasons why this
years

widespread apathy
attitude

this

cent

industry^ is encouraging.

brought

'•

Last

sions

ma¬

•••*

'

.

was

hotel

have

chains.

im¬

Fed¬

%

•

pated by the industry for 1957, with
somewhat more optimistic
compari¬

Perhaps the

during the past two fiscal

,

a

"family" of hotels.

possible emergencies

must

%'■■%<

*

trend-towards

is,
brought

costly and demoralizing.

Indications

the

ours

unavailable

HENDERSON

reduced occupancy
virtual halt during the past 12 * •
months. A small increase is •a'ntici*'/*
.

dredging industry
value.

y

industry in 1957 appears to be heading for
year.
Gross sales for all hotels Should

inestimable

the

V;

J

record

exceed $3 billion.

sales

During
with

portance

equipment division for the sale

:

%

President, Sheraton Corporation of America

another

pipe

of crude oil into normal-

cargo

•

hotel

the

Delaware

size tankers before entering the river.

Important channels,

.

Company.

because many

.

channels

develop¬

application machinery as a logical
adjunct
glass and packaging lines. Just enopgh business




needed

oil

provements during normal times.

packaging equipment business
29% higher in 1956 over 1953

packaging machines.

During

is

is

30% higher than 1956. This increase is
largely due to
product lines acquired through the purchase of two com¬
panies in
1956.
plus the effect of newly developed

ment

line

deeper

crude

appeared

this area's refineries

to

corporation, Cape Pipe

com¬

substan¬

Our

Hallander

Bay

glass

whole.
E.

Delaware

dollar

of 500,000 barrels

excess

-

and

of

directly
production of.

of

container

of

day, 7 days
Lynch glass

business

rate

over

which

1956.

Because of this,

tied

Elvin

multi-million

capacity in

equipment,

production
a

forecast

glass sales will

our

service

are

is

up

glass

over

the

to

containers

sales

that

to 10"%

5%

Due

tial

be
coupled

which,

should
run

output

industry to

newly

a

article

an

Some

packaging

equipment.

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

"A

from

IIALLANDER

from

recently in the New York ''Times'':''/

in

*

are'excerpts

shareholders.

ERNEST

4

hotel

on

a

change curing the coming year.

change which

the

industry

manufacturing

such
were

and

earnings

as

reason

may have

industry—is the

recessions

Sheraton's

may

most important

realization

1949

more

many

for

and

stable

this change

in

important repercus¬

1954,

that

during re¬

earnings

than

those

merchandising

actually maintained

of

of the
most

enterprises.

their

uptrend

during these

<g
)ii
>r

ot.

I
P

id

f

et

fi-'m

011

it

er
n-

ite

he

.

.

The Commercial and Financial

.

so-called recession

years. The answer

Chronicle

although it

seems

is

that

doubtful

they will experience the

through

be

.

,

:ld
>r-

hotel construction—almost dormant for several

New
ias-

a

»l.v
use

in
m,
n-

Sales

of

automotive

■>'

■I

parts should reflect in 1957 the

practical in leading commercial cities. A new 1,000room Sheraton is scheduled to open in. Philadelphia the
first week of March. Further new construction by Shera¬
ton as well as other leading chains can be expected in
the near future.
•'
;S/:
J'/'',.

,

.

JOHN

ili

A.

improvement in the automotive replacement field

Reduction

1956

By most accounts

This is

was a year

lie
m,

somewhat from 1955 levels.

As

we

•

economic heights.

-

;ed

of this

tinuation

1955-56

boom

into

1957, although at a somewhat sloyer
rate
of
increase.. The
consumer's

en.

nd
ive

spending intentions are not quite as

lar

clearly

although

defined,

it

is

parent that his personal income will

not

The

rise still further in 1957.

snt

rates

celerated

dit

the

prospects

ars

of

for

Warren

E.

Hill

stock.

is

products

the

During

activity,

somewhat

pacity

im¬

of

sales

has

placed

and

hose

of

industry in 1957.
on

the domestic

liquid fuel.

1956, Thermoid

expanded

its productive

automotive

molded

rubber

for

W.

HOGAN
City

Board,

National

in

five

now

Oklahoma

million

up

to

a

activities

won

for

cattle

increase in
;es,

further
should

ons

shipbuilding activity, and

HALL OF

FAME, the site for which
already been located. In winter

has

wheat
States
:

rank second in the United

we

since

we

belt,

our

largely in
production of
commodity is in high rank in
both quantity and quality.
the

and

cotton

are

that

have

Clubs

4-H

and

of America

the

Future

for many years

prizes in the pro¬
grading of livestock
other state. Many of these
boys are today leading business and
professional
men
throughout
the
Southwest.
Through their activities
won

duction

more

and

than any

W.

Dan

Hogan

agricultural

our

ca¬
i

Continued,

hose

on

page

maintain production

ims

John A. Hill

growth in heavy construction
enable the metals producers and

fabricators to
Continuing

"mm I

activity at high levels.

Afew Progress REPORT..

technological^improvements and increasing production
acceptance of"industrial gases and welding equipment

ef-

rld

should result in

or-

a.

good year for this business.
spent for research and de¬
(

The large volume of funds

velopment in the past year, the heavy

nal

expenditures for

for

a

ing

we

jur

we

1

RELATIONS

picture for 1957 should become much clearer as
a little further into the first quarter; for this
more than any other recent year, may well reflect

DURING 1956

the

increasing- weight of important psychological fac¬
The effect of price increases upon the well-stocked
consumer's willingness to buy; some lessening of the
businessman's ebullient confidence in his profits future;
tors.

more

sober appraisal of

these could slow

our

might well result in
In
to

the credit future—any one

economic progress during

a

plateau or a down-turn

later in the year.

uld

sht

STOCKHOLDER

get

year,

a

for

plants and new products, and more

new

growth into new markets should make for
good chemical year in 1957.
The

to

tnd

me

,

program of capital

diversified

md

/

of

..

in activity

the: outlook for the year
indicate not an. alarm, but an alert.
summary,

ahead seems
?■.

V

begin the

r

Below is the list of new

f

:

Aetna Standard

•ftfttvX

conditions

years

n
in
;es

;pn

Charles W. Hotf

25

than

offset

ist
es.

nd

the

are

in

At

the

picture.
and

we

The
may

•

Montrose Chemical

Laundry Machinery

•

North Canadian Oils Limited

•

Pacific Gamble Robinson Co.

•

Pepsi-Cola General Bottlers, Inc.

•

Engineering Corp.
•

Sparton Corporation

•

Thrifty Drug Stores Co., Inc.

•

Union Chemical & Materials

•

Williams-McWilliams Industries, Inc.

Fibreboard

That is
year.

Paper Products Corp.

our

May

Progress Report for 1956

we serve you

...

our

Corp.

biggest and best

in 1957?

•

y^/wa/ugcUwn/^~\,

is oou

Stockholder

debt or

lOO Broadway,
Ruse

In our immediate area—with.highly diversified
'
factoring—business activity is at a high level, a°d may
be expected to. follow the national pattern of prosperity .
in the months immediately ahead. •
'

Banks should have'another

profitable and useful year,

witt/conklin

de

are

be attained.




Republic Supply Company of
California

Hercules Gallon Products, Inc.

construction are expected to
exceed those in 1956, and will more
small anticipated reduction in private
there

-v

Diebold,Incorporated

public

time

Company

Continental Motors Corporation

strong

defense purposes. Under the circumstances it
that any significant reduction in the national
can

Distilling Company

sobering aspects to the
international political situation is sensit:i
,
expect continued heavy expendi'ores

.same

fl

Koehring Company

Continental Aviation &

,

a

•

Engineering Co.

Century Food Markets Company

not so mucn
changes as
and markets in tne

ahead.

residential construction.

taxes
he

*

'

1111?
1

I
t

Company

the long-term plan¬

employment
situation, and personal income is at
a new high.
The forecast for steel is
exceptionally good with the expec¬
tation that the industry will operate
at close to capacity well into 195/.
Expenditures for industrial expan¬
sion of plant and equipment andI lor
We

•e-

-•

t

clients served by the De Witt Conklin

The Amerkon

slackens somewhat
the immediate outlook will still be
favorable, and there is good reason

Even if the pace

with

in

,v-

The American

ning of those who are

is--

:

;<

concerned with temporary

ar.

a

Organization in the past twelve months:

Baltimore

year

for confidence in

nis

roster—and

doubling of our service organization

<'

Maryland,

with the momentum of business
under the restraining influence of the Federal Reserve
System, which has succeeded so far in maintaining or¬
derly progress and in preserving the value of the dollar.
We

to

our

accounts

m

CHARLES W. HOFF

:ks

new

1957 and

•

President, Union Trust Company of

?iy

Nineteen
added to

,

and

Financial Relations

New York 5, N, Y. • WOrth 4-6056

Bldg., San Francisco 4, Calif. • YUkon 6-0058

v"'\

"V*
-

>

y'• %y//v.

in

and

for

proved automobile year, an expected

m-

year

planted

COWBOY

THE

of

the

for

acres

good stand and in

is

cattle

Bank

Oklahoma City, Okla.

business

which is

location

The

increased

situation

flexible

Its

the

it

prpject now getting

petroleum industry the responsibility for production of

business
a

East

the

j

furnishing pasturage
sheep. By nature this state is adapted
to
agriculture and especially live¬

Farmers

expects

of

withj about

sections

some

:

most of the free world's

The momentum of our present ac¬

for

middle

outlook

begins

winter wheat

other rubber products to the petroleum

ap¬

ice

The
1957

a

the road build¬
ing program, sales of conveyor belts are being influenced
by new applications. In 1956, for example, Thermoid
installed a $250,000
conveyor
belt underground in a
Utah coal mine. This is the only one of its type in the
state.
Considerable
new
business
is
expected from
also

optimistic.

DAN

underway.

Thermoid

be

and Trust Company,

particularly true of conveyor
and
large
diameter
hose.
impetus to demand for these

similar applications.

to

reason

Chairman

In addition to the gains expected from

spending by the businessman and
by government point toward a con¬

ich

has

pany

by

^anticipated

multi-billion dollar Federal highway

enter 1957, this new

year has the potential for even higher
Present prospects for income and for

de
ip-

belting
Adding

Company

of record business
activity, although some segments of the economy slipped

is

and

in other divisions of the company. With all
major mar¬
kets for Thermoid products thriving, Thermoid Com¬

bright future for many of the com¬
pany's industrial rubber products.

HILL

Air

President,

gli

Despite Thermoid's dependence upon thef automotive
industry for a large portion of its sales, it is estimated
that the company in 1956 achieved an increase in earn¬
ings on sales which exceeded those of 1955. This sho\ying, realized in spite of reduction in demand for original
equipment by the car manufacturers, resulted from

and

there

radiator hose
Illinois.

molded

it provides for substantial reduction in inventory
requirements.
•
•
>

con¬

usage.
In other industrial areas served

Thermoid,

the

of

cause

tinued upward trends in automobile

registrations

acquisition

replacement

decades except at Miami Beach—is gradually becoming

at

the

division of W. J. Volt Rubber Corp, in Danville,

This type of flexible and versatile automotive hose, in
the production of which Thermoid pioneered, has proved

popular with service stations and other customers be¬

.

n-

81

(277)

same degree of
that hotels, which made such a sorry record during
higher earnings over 1956 that they did
during the past year over 1955.
the great depression of the 193Q's were then saddled with
^
relatively hekvy mortgage indebtedness. This contrasts
WARREN E. HILL
with the rather conservative debt structure of today,
when related to the present market value of most hotels. v
President, Thermoid Company
perhaps as a result of the better than average showing
The automobile
industry appears to be well on its way
made by hotels during recent recession years, both hotel
toward a near-record year in 1957. If
production esti¬
debt securities, as well as hotel company equity shares
mates are achieved, 1957 will be better than
any previ¬
have appeared, in substantial amounts in the portfolios
ous year
except 1955.
of several ot thec country's leading investment trusts—
The
Thermoid Company,
which
a development which, may well foreshadow an increased
derives 40% of its
business from
interest oh the part Of the general public. This > may
sales
to
the
automotive
field, is
mean a change, in. the tendency of listed hotel common
benefiting from expanded automo¬
stocks to sell, at, half their indicated asset value, or for
bile production. Sales of automotive
their debt securities to* sell, even under existing tight
fan belts,
brake linings, carpeting,
money conditions, on the basis of what appears to be a
and other friction products are ex¬
quite high yield,
1
pected to be higher than in 1956.

to
or

Number 5604

185

Volume

V..:;**" /:

*

'& /+v

'

s

•

4

^

i
r-v - •

•

>::•%*: ft*

•

d>

82

>.

(278)

produce enough bread, meat, butter, and clothing-fiber to
home consumption and a
surplus which we
market
that would
satisfy the needs of the nation
of

in the years

Holland Dutch

81

{

sion

to a point where we

land has been terraced and drained

satisfy

Hungary.

equipment to operate a farm costs
million and this outlay
for farm units to be two and three
they were in the horse and buggy

in the neighborhood of $12 to $15

it

times

necessary

than

larger

>

days. This has a tendency to reduce the farm population
and it is drifting to such government centers as Tinker
other

Field and

government projects which are already

located in this state.
The

With

i

which is of vital importance.

conditions

weather

highly

favorable,

Bakers, Inc.

1957

should be a
-J

prosperous year.

along with the

company

those which

reasoned

have

we

optimism,

already met successfully. Thus, a
on a spirit
of progress and ;

innocuous

The

past

has

year

been

CROIL

~v

HUNTER

•

'

.

indications

All

the most satisfying
Corporation and its
I anticipate that final figures

from

,

achieved

sales of

net

billion.

am

I

will

1957

The

than

more

$1

tion

1957

Dynamics products emerge
planning and testing stage
into active production.
These include an array of newly

will

*

Hopkins

are

so

often

left

on

The

prevent

rise

increase

an

essary

an

Hunter

or

-

more

is

there

so,

than 1956.

*

a

pansion

of

C.

•

larger
since the vigor¬

savings bank investment funds, but ex¬
portfolios should slow down to

mortgage

reflect both

decline in

a

residential construction and

new

attractive alternative investment opportunities.

more

Funds to purchase corporate bonds will be derived not

:

only from

CHARLES

cities.

lifts the yields offered by corporate issues.
mortgages will doubtless continue to be the

estate

chief outlet for

•.

.

.

.

around

areas

demand" for funds to finance record plant and equip¬

ous

Real

passenger f.
increase is nec- lr

be

to

JARCHOW

in

President, American Steel Foundries

deposits and additions to surplus, but also

new

limited

a

extent

holdings

from

United

of

continued

a

States

Such holdings by savings

gradual reduction

Government

obligations.

banks still aggregate

some

'

plane, new developments in
commercial communications equipment, electronic auto¬
senger

.

devices, nuclear research, and sound equipment
and commercial use are among the new non-

mation

Our present order backlog of $60,000,000 for all
uct

defense

projects

on

Corporation's various
Some of these products have been

which

divisions are at work.
under development
of

of

many

for

these

the

than

more

will

items

10

considerable,

the

the

and

indicates

far

in

that

field

the

physical evidence produced thus

more

new

tools

conveniences for

and

man's use are just around the corner.
that

believe

I

which will

we

entering

are

So many, in fact,
Scientific Renaissance

a

alter, favorably, the economic complexion of

the entire world.
'

«.

RUSSELL

J.

HUG

Cautious
ness

optimism.is the dominant note

scene

as

the

new

apt to maintain

more

brash confidence

entered

1956,

a

year
our

The

but

on

the busi¬

than either

economy

or

The 11-year-old

may

momentum

alone

it

well beyond
continued tightness of

marked

but

should

continue

gressively
consumer

and

producing

the

market

areas.

The

taken

in

than in
We

supply

will

never

with

food

a

nig

this

field

that

J.

Hug

in

survived

the

these

national

can

so

open new

economic

they

picture

can

and,

apply

the

^ searching for
1956,

Banking

Company,

older, indi¬

itself

in

the

as

part

of

constantly growing market of
West Coast by
purchasing the outstandingly success¬
retail
baking company known as Van de Kamp's




r

raw

made ;

we

not

Front

a

per

be

our

than

total volume

60%

today,

business,

•

which

10 years ago, com¬

will

by

the

states

forecast

industrial

of

be

more

stable

Railway

chain

industries

that

in

should

nation-wide plans for

the
be

earth-moving
accelerated

active

Also

agricultural manufacturers

in

by

highway construction

expansion of industrial facilities.
that

indica¬

will

become

1957.

hydraulic machinery, machine
pipe-coating operations should be substantial

too.

,

All

of

effort
new

divisions, and

our

toward

or

product

refined

possibilities.

production

operations,

new

directing,

are

development
and

processes

processes

formance and products.
nace

subsidiaries

improvement,

Particular emphasis

development of

new

is

market

being placed
to improve foundry

These include

of

upon
per¬

hearth fur¬

open

development.
the

new

core-mak¬

'

basis

1957

will

may

amount

be

the

to

of

We

are

present

largest
about

in

plans,
our

capital

additions

in

company's history and

$10,000,000

as

compared

to

an

continuing to

pursue

our

diversification

ob¬

jective and the substantial earnings being derived from
steps already taken indicate that a firm

established.;

■

-

well

This

rec-

a

in

•

t

exeess

figure* is

16%

entirely- possible

may

reach

that

the

$420,000,000

in

gross volume of

a

$109,100,000 in
figure 22% greater than the
previous year's record high: of $89,100,000 and an increase of 540% over
a

the gross volume of
Of

the

the

several

decade

a

factors

phenomenal

ago.

responsible-

growth

of

the

renting and leasing in¬
dustry, I believe the most important
is

the

acceptance of rented and

Jacobs

L.

Walter

and truck

car

vehicles by the

leased

general public and the business community. Americans
have become addicted to the motor vehicle and are ac¬
customed

to

having

a car at their disposal at all times.*
coupled with the increasing use. of
airplanes, and fast train service between distant points,

When

it

is

this

It

most

the

is

That

a

car

at his

is what is

happening today.
is our experience in company-owned operations of
Hertz Corporation that automobile rentals show the

The

we

habit

only natural for the traveler to rent

destination.

dramatic

.,

increase in growth.

•<

Month after month,

find business volume in this phase 50%

greater than %
corresponding month of the prior year.
|j
reason
why our industry has grown is because |-

more

and

more businesses are
turning to the long-term
leasing of the vehicles which they use in the conduct of
their
business.
The
maintenance, financing, washing,
painting, and storage of company cars and trucks have

posed

increasingly complex problems

Many of these business firms
lems to companies like

ing of vehicles.

base

has been

are

to

businessmen.

relegating such prob¬

which specialize in

the leas¬
Through leasing, management frees it¬
time-consuming distractions. The
ours

self of unprofitable and

capital

molding methods,

ing processes, reduction of cleaning and finishing effort,

On

volume

Another

Increase in the sales of
and

,

The Hertz System alone will real¬

1956,

three-year labor

our

railroad

the

prepared

RPI

construction

the

..

ize

,

labor stand-.

outlay of $6,000,000 in fiscal 1956.

a JonS-range plan for growth and expansion,

estabhshed
tne

General

volume

Progress
"95,000 freight
year is
the goal that car-building facilities
prepared to meet during the next 10 years."The

more fruitful areas into which the skills,

and investment powers of the
vidual corporation can be
utilized.

During

which

improved material handling and extensive metallurgical

Despite continuously spiraling production and trans¬
portation costs, it is very possible to enhance
profits to
the benefit of both the
corporation and its stockholders
the stabilities

less

recently

are

the

areas.

lessons of the past to the
plans of the future.

ful

with

of

and

1957.

our

that

truck .renting

.

.

keep
materials "(principally

part of

is

v

Should this trend continue, it might

hopeful

more

ingenuity which is

variations,

increases

it

for

are

and

1955,

product lin^s did

as

automobile

industry achieved

business

$350,000,000.

and
Charles C. Jarchow

faced with cost of living increases and also

are

we

the

greater than the previous record high
of $294,000,000 established in

that

our
•

1956 the

of

same

merely filling needs already existing, by creat-

fluctuations

+

point

tions

Old, well-established food companies have the great
advantage of having experienced in the past all varieties

having

and pig iron).

and
Russell

part of the American businessman

comparatively untouched market

price

of

cost

of

as the year that this
&
dynamic and comparatively young industry entered the ^
ranks of big business. It is
conservatively estimated that |

in

better

necessitate further price increases.

the current

applications of old items in old markets and by
applying the skills learned in saturated markets to new

of

scrap

and

new

and

the

with

Shipments

the

the

The

pace

tools

vistas by

.

ord

appears now

in.some of

1

i

JACOBS

..

even

an

L.

President, The Hertz Corporation
Members

a

margins,

should

before.
much

hoped for

new

V

leasing business will remember 1956

all

larger'1

year.

1

WALTER

on

where demands for

economy

strongest.

are

earnings

were

years

previous

August

cars

food field that competition will become
greater than ever

in

capital

higher volume of busi-f
ness,increased wage «,and: material >_ J
costs will make it difficult, perhaps
impossible,
to
maintain
the
1956.

even

potential

growing markets despite any varia¬
tions in national industrial conditions; it is in this

also

ings to sectors of the

substantial

a

conditions, mutual savings banks perform
directing the flow of sav¬

the basic economic function of

1956.

shipments in

in 1957; but it

year

Institute.

It is in this field that continuing
population increases will create ever¬

is

earnings

in the future than it has been in the past. Such stability
is indicated in a 10-year projection of railroad growth

demand.

It

recent

any

had

pared

all

meet

of

of

represented 90%

industry, particularly, should lose no
opportunity because in this one field
the

By expanding their purchases of corporate securities

company's
product
lines.'
from diversification steps'"

Earnings

We

ag¬

in

largest

$8

than 25% of deposits.

or more

under present

contract.

should

1957,

expanding

result

greater volume
of

in

increase

general labor increases

despite
money, labor,
materials and productivity,
lag under these increasing pressures
carry

them,

$8,370,614
compared"

$117,130,270

income
of
$3,770,371
$80,664,461 in 1955.

the

was

last

starts—a good sign and one

healthy

gloomy pessimism.
be said to have
leveling-off period during

boom

postwar

Baking Company

to

see

now

good year.

the

net

profit
President, General

amounted

of

we

billion,

prod¬

.

com¬

been

as
a

had

Foundries

55-year history in fiscal

sales

sales of

has

Steel

income

Net

with

research

of

its

during

plex, corporations in general, and particularly General
Dynamics, have come to see that to succeed they must
invest men, money and imagination not only in terms
of "tomorrow" but of the "day after tomorrow" as well.
investment

in

on

coming year and new ones will be added.
As manufacturing has become more technically

Our

American

Production

years.

expanded

be

lines, together with prospects
will be

makes it appear that 1957

for home

4

areas,

ment outlays

•

in

to

some

investments in corporate bonds, this year;

and ;

competi¬

general
increase in profits.. All factors considered, 1957 should be as profitable,
if

in

Mutual savings banks may be expected to make"

competitive situation may

fares but I believe

Croil

has been lifted. ;; This
compe¬
tition may slow down deposit
growth

fast growihg suburban

many

•

increase in

an

f

particularly since their
ability to compete is still artificially hampered bv rigid
restrictions which prevent the opening of branches in

better

.

in 1957,: now
interest rates paid
accounts,by commercial
on

banks

for savings banks

includ¬

and

institutions

ceiling

savings

on

August Ihlefeld

*

year's

past

to

continue

there will be

tion.

and

pubh\c. t" p:

will

Costs

the

the

mean-.more

the

defense,

Jay

add

On the other hand, competition for
more intense among

that the

will place in opera¬
modern
equipment

developed

John

also

credited

financial

mail

freight,

over

additional

.

which

weapons for our nation's
notably: the B-58 super¬
sonic bomber, the F-102A supersonic
fighter
interceptor,
the
"Terrier"
guided missile, the CHARACTRON
shaped beam tube, and the nuclear
powered submarines "Seawolf,"
"Triton" and "Skipjack,"
The new "Convair 880" jet pas-

at¬

but

gain in deposits because divi¬

«..

revenues

Most of the airlines,

service to

1956 also saw many new

General

from

in

ing Northwest,

substantially greater.

be

year

.

will continue to show an in¬

results.

confident that sales for

that

are

passengers,

crease

Corporation will have

will show that the

by

only

to them,

savings

not

savings will be
.

Chairman of the Board, Northwest Airlines, Inc.

Dynamics Corp.

divisions and subsidiaries.
year

paid

banks

dends

'

;

/ -.,;

express

the

rates

I
1
I

deposit with the-savings bank.

in the history of General Dynamics
for

savings

to the

quietly spread from
of the industrial

can

entity.

of

one

mutual
tract

members

all

to

ar,ea

dividend

Increased

preventive medicine for America's
Pessimism, with or without just cause,

debilitating factor which

a

one

HOPKINS

JAY

Rising national income fosters faster
deposit growth, as does the higher
rate of return paid on savings
today.

fearlessness, is good
is

1

flicting influences.

based

.

JOHN

$1.8 billion. The trend of savings bank
deposits is currently subject to con.

reached

170 million

nearly

States look
gain during 1957 about equal to
deposits of the past two years

deposit

a

increase 'in

citizens, has barely ruffled the surface of its production
potentials. Moreover, there is no problem nor crisis to
come, short of atomic war, bigger in
proportion than

t

Chairman and President, General

to

annual

the

savings banks of the United

mutual

The

forward

which

its

with

whole,

a

as

IHLEFELD

President, Savings Banks Trust Company, N. Y. City

ahead.

nation

business future.

government's SBA is giving assistance to farmers

and stockmen in this state

this

This

New and improved

makes

of

Thursday, January 17, 1957

...

AUGUST

We plan continued expan¬
parent company.
Our entire
organization is dedicated to standards of
quality so high as to assure in all markets continuing
consumer acceptance.
This, added to our controlled ex¬
pansion plans, should assure positive financial benefits >

Continued from page

Chronicle

Commercial and Financial

The

82

mere

invested

in

cars

and

trucks

is

released

for use

profitably.

I believe the potential of the

an^ trunk

renting

and

leasing industry is unlimited. According to the Defense
Transportation Administration, the nurfiber !of cars and
trucks

owned arid operated
by rental and leasing com¬
panies have risen from 80,000 in 1950 to
260,000 in 3956.
In the Hertz
System, our passenger car fleets alone have
increased from 6,750 cars in
1950 to 21.600 in 1956, and
we
expect to increase this number at least 20% in 1957.

Of

the

United

9.000,000 tracks now on the highways of the
States, only 2% are under lease. The industry's
in truck
leasing lies in its effort to place under

potential
lease

the trucks in the.

present

2%

rate

the

remaining 98%. But even at the
potential is still great, as govcrn-

:
•

:

Number 5604V.

185

Volume

The Commercial

.

and Financial Chronicle

statisticians predict' that more than 20,G*')0,000 trucks
in 197:5. r
1
V
The number of truck? in the fleets of the Hertz System
have doubled since 1950,' and we now have more than
19,000 units in lease operations. ■
It is my belief that this industry will continue to ex¬
pand and develop and will become an increasingly vital
part of the American business pattern. The business es
basically sound, and offers great opportunities for all

mrnt

will be. in use

.

..

.

the

from

v

-

rates, the quantity of
able

for

mortgages, and action
Congress and Federal agencies
terms

for

government-backed

'

At

the

the

most

home

has

payments

important

A

active

not be done unless

able for home

condition.

adequate amounts of

But

money are

to

the

For

for

.

other

is

avail¬

they
'

must

why it is

so

mortgage

not

unless

save

to do

B.

is

purposes

at

unprecedented

deeply

coming

within

rate

Ashland,

will

be

felt

equipment.

dollars

as

oil

comes

from the railroads to whom

replacement items.

we

increase due to

in 1956.

same as

These

Total
in

Loans

Cash

Securities

and

Federal

—

Bank

by the majprity of economic forecasters. In any

much

as

I

by the inter¬
believe that

the

with

same

which

of

sense

distin¬

has

even

have
do
Jennings

urgent

with -the

based

ble

both

to

sovereign

That

overcome.

establishment
B. Brewster

difficulties

immediate

after
been

of

a

for

need

moral

has

to

the

standard

recognition of the sanctity

on

contracts

nations

which

and

will

be

applica¬

the

production

hicles.

About

farm
lor

of

industries

placement.

is

and

•

to

CITIZENS

FIDELITY

by

."

—.

by products

products for
!

.

ore, we

and

look for

due

Here,

the

to

further

the

to

407,090.07
65,000.00

$

Government

S.

large

road-building

development

Continued

STATEMENT

BANK

AND TRUST COMPANY

Federal

1.00

Other

'

•

Fixed

"

" *

.

v-

.

472.091.07

Assets

101,536.37
1,507.73

Assets

Overdrafts
TOTAL

■;

.

$34,648,822.94

ASSETS
LI

ABILIT1

E

S

$32,037,129.35

Deposits

,

Reserved

for

Taxes,

Liabilities

Capital Stock
Surpius
Undivided

_

Etc

Interest,

—

33,003.00

84.943.495.27

Deposits

85,124,354.37

Dividend

;

25,355.42

Bonds

$

and Securities—

Loans

Discounts————

Total

TOTAL

_

—

1957

and

1,813,722.51

—

526,238.55

Interest Collected but not Earned
Letters

Furniture

Real

and

of

Credit

Issued

Capital

1.00

——

—

1.00

Estate——,
Liability

—

Letters

Credit

Surplus

af

:

1,450,582.09

15,950,582.09
Other

Resources

—

900,000.00
324,050.50

——T

Our Trust

5,620.70

v

5/8,ao/.

—

$271,348,720.63

are

excess

of $160,000,000.00 in Personal Trust

not included in this statement.

oengngfiifi

Reserves

Funds and

Department holds in

Properties which

987*66

Reserve

'

LIABILITIES

..

,

$34s648,522.94

--

—

JOHN C. C- MAYO,
L. M.

•

■'v.

P'TJT,

BOONF LOGAN; Vice-pres. and
S. G.

Chairman of the

CAMPBELL, President

CITIZENS

CLICK, Vice-President

£.

Cash.

Federal

-

Reserve




System and

'

W.^ATON.VkerPresid*.
c'/JS

-

Asst.Cash, and Tr. Off
FORD- DIXON',

Member

Board
•»

WTLUAMSVBxecut»fe Vice-msident &

PAUL GRUMBLES,

1,203,962.24

4 500.000.00

10,000.000.00

Undivided Profits

1.203.982.24

—

$

OFFICERS
l

1,247,201.15

Funds:

Capital Stock

Customers

—

Fixtures

S271.343.720.63

'

.

$250,953,252.64

180,000.00

—

Interest

Expenses

110.612.865.12

and

Interest

700,000.00

Capital

2,

Reserves—Taxes,

8.497.182.38

Earned but not Collected

!
Payment

January

435.000.00

Stock-,—

--

Profits

Valuaticn

1956

—

Capital Funds
Lean

Bank

Reserve

(All Offices)

Other

31,

LIABILITIES
—

Securities——

nt

r

JOSEPH C. KING, Assistant
Auditor

,.v

FIDELITY
Sftice

Cashier

.
^

Federal Deposit Insurance

1353

—

Cash! r

•Corporation

BANK & TRUST CO.
L

'O U ,1 S V I L L E

memberps0eral

'

Kentucky
oeposit

-fEDERAL'RESERVf' SYSTEM

s

of

Taconite

increase in sales volume during 1957.

an

RESOURCES

U.

re¬

of our sales consists

Louisville, Kentucky

Cash and Due From Banks

re¬

auto¬

steel castings, alloy iron castings and alloy

industries.

tion

program

"

Total
Other

$22,192,071.73
48,000.00
11,333,616.04

an

castings for the machinery, mining and construc¬

December

_

farm

6,500,000 ve¬

.

V

arid

the automotive and

represented
50%

about 20%

speaking,

of manganese

steel

sales

our

equipment,

Generally

automobile

look for continued

we

of approximately

year

50%

equipment

original

Here

equipment, industry and

farm

mobile

the

to

go

parties.

private

to

in

covery

it

hope

castings

equipment industries.

3;507,219.07

—

Building
----Real Estate Acquired for Future Expansion.
Furniture, Fixtures and Equipment
'

V-

--

——

be

railroad

non-ferrous

in the past.
is that in meeting the
many and complex problems which
face us we shall not forget a far
larger problem which will remain
My

.■! V

___

Bank

Reserve

and'Discounts

may

general increase in the economy

a

Public

Stock

railroad

this portion of our business is that our volume will

in

CONDENSED

$
655,909.45
Housing Authority Securities —
1,743.365.63
F?dcr-V Agency Securities
—
1,048,304.24
Municipal Securities
—-59,639.75
Corporate Securities
-—-—

sell brake

The outlook for 1957

Bank

•.

transpor¬
sales

our

Our volume of sales of these items

purchases of capital equipment.

forecast

$8,715,692.64
9,969,180.02 $ 18,684,852.66

from Banks
Government Securities—.

operation of industrial and
Approximately 40% of

is dependent upon railroad traffic and not. upon

industry will respond to the

guished

December'31, 1956

Due

to give you an outlook for

us
are

we

shoes, car wheels, bearings, switches, crossings and track
specialties. All these items, as you will recognize, are

These develop¬

Kentucky

ASSETS

and

tation

by the domestic

companies.

of

Statement of Condition As of

Slates

maintenance

JENNINGS

responsibility

of the

the framework

because

engaged in manufacturing
different industries.
Essentially all of our products are required for the

them

for

f) (I

for many

People will

save.

incentive

difficult for

field"

stay approximately the

challenge

we

The Second National

United

It is very

"our

of all

source

i

Treasurer, American Brake Shoe Company

Company, Inc.

the

interest rates at realistic levels.

and

to

sufficient

industry

Likewise, mortgage terms should be made easier for

Hand

the

national

charged there and would tend to hold home mort¬

on

is

ments

Savings Bank of Brooklyn is one of the few
are continuing to make FHA and VA

large volume, but

Cash

industry

year

We

,

that

particularly Europe.

bring a large per¬
centage of lenders back into, those fields. Competition
among lenders in any given area would determine the
gage

.

concerned

FKA and the VA undoubtedly would

rates

major

after

traffic probably will not decline from
will-see the petroleum industry
its 1956 level.
with problems stemming from the
situation in the Middle East and the attendant-disrup¬ 1 Approximately 20% of our products such as auto¬
motive brake lining, steel forgingsi and ferrous and
tion of petroleum supply to the Eastern Hemisphere,
The

are

interest

only

contract,

WILLI AMJB^ JORDAN

event,

^

flexible

the

be encouraged

Oil

levels.

cannot meet all the de¬
mands placed upon us since so many other lenders have
withdrawn from the home mortgage market.
A

of

some

market.

loans in

is

BREWSTER

are

The Dime

climate

a

Chairman of the Board, Socony Mobil

obtain the highest yield.

exceptions;

In

binding

so.

mortgages guaranteed by the Veterans Adminis¬
unrealistic and unattractive in. today's money

on

It

remembered

there

pegged interest rates of 5% on mortgages insured
by the Federal Housing Administration and the 41/2%
tration

paradox.

a

savings of the people. That
essential in providing the necessary funds
investment and other capital needs that

The

rate

be

the individual must

Accordingly, the majority of lenders have
highly selective and are making loans where

can

with

downward.

are

saving at the rate of $20 billion
all-time record, this is not enough to meet

an

year,

It

save.

for

all demands.

become

build¬

home

economic

defeat

several

Although individuals
a

headed

months, home mortgage money
increasingly scarce because demand for

become

has

funds

confronted

are

and land.

past

the

investment funds is from the

mad^asier to compensate for the higher prices of homes
whjHbpve been caused by steadily increasing costs of
laboifPfaterials

of

In fact, cheaper money probably
objective of increasing the pool of
investment funds from savings because cheaper money
would not provide the needed incentive for individuals

can¬

mortgages, and unless mortgage terms

soundness

The ability of a

sovereign nation to make
all, should be cherished and
should be regarded among newer nations as a mark of
maturity and responsibility — in other words, of true
sovereignty. Violation of such contracts, on the other
hand, must in the end harm both the defaulting govern¬
ment and the very concept of sovereignty.
The accept¬
ance of
this principle in 1957 would earn the year an
honored place in history.
a

possible to insure

as

areas,

of all nations.

A

money.

econ¬

this

and

base

a

many

with governments are necessarily involved, re¬
spect for them is the foundation on which private enter¬
prisers build. This, I think, must be accepted by leaders

and,

the

•

and

health

sarily cheaper

that the home building industry
maintained* in a sound, healthy

be

broad

as

would

on

omy
,

a

What is needed by the home building industry and all
other industries iii the nation is more money, not neces¬

FHA

It is essential to the nation's

George C. Johnson

into

goes

and fiscal policies.

FHA loans, and
mortgage insurance
premium in half.
\
:
r
the

cut

ments

a

.

one-

which has suffered because of unrealistic Federal credit

government-backed mortgages, lower
to

as

nearly

to

prosperity .'.with practically
every business and industry expanding enormously, the
home building industry which is so basic to our economy

constructive actions would be to per¬
mit
flexible
interest
rates
on
all
down

totals

1%

premium

losses

any

aow

on

unprecedented

on

Congressional and Federal

levels,

agency

We

by

rv,-;'

mortgages.

meet

of

ing industry. Opportunity must be given to the greatest
possible number of families to become home owners.

avail¬

money

$500,000,000,

one-half

insurance

pro-

be kept

gram

interest

as

to

fund

the continued

Factors in-

volved include such items

fund

This

tions of depression magnitude should develop.
Since government-backed loans account for about 45%
of all new home construction, it is obvious that this

.

a

policy changes probably will be completed.

result of foreclo¬

throughout the world.
including the Middle East, private
capital, contracting often with sovereign governments,
has been the principal factor in the development of
natural resources and trade. Private capital has already
accomplished much in relatively underdeveloped areas
and should be expected to accomplish a great deal more
—provided, of course, that it is allowed to do so and
that it can reasonably rely on contracts. Where agree¬
In

according to the FHA, is now in a position to meet such
losses as might be incurred if adverse economic condi¬

';V

:

■

1%.

This

sures.

approximate

present
of

reserve

period of readjustment
of most of the factdrs involved*in mortgage lending and
home building, but by mid-year the readjustment and
;

its

quarter

standard is essential

a

mankind

of

initial equity required by the FHA. This
should apply uniformly to all American home

buyers.

ve¬

of such

if private capital is to continue to work for the benefit

mortgages somewhere
on VA loans and the

To compensate for higher interest
rates, the insurance
premium on FHA-insured loans might well be reduced

President, The Dime Savings Bank of Brooklyn,
vNew York•>":

The universal acceptance

formula for down

a new

much higher

formula

,

C. JOHNSON

The next few months will be

buyers by establishing

payments on government-backed
between the 2% now permitted

.

well-managed, properly financed companies in
hicle renting and leasing field.
*,
GEORGE

all home

,

83

(J279)

Leading Bank

insurance corporation*

on

page

84

SI

Continued from page

hydraulic

produces

products from farm crops, has developed
Alpha Protein, the first pure protein chemically isolated
from the soybean ever to be produced on a commercial
scale for industrial use. It is used as a direct substitute

our

company

Denisop Engineering Division

our

and

tool,

petroleum and all light manufacturing and as¬
industries. The growth in the hydraulics field,

hydraulic

for

pi-esses

to

for

demands

current

automation,

is

very

in

curtailment
Pie

rates of interest

present

pro¬

in

development

expect that
will

be

capacity

our

expansion

production

and

of

planning

not

are

we

programs

products.

new

in
We

will continue to be tight, but there

money

products

for

curtail

could

course

sales

own

our

of

outlook

in

Xjrogress

Little

for

and

for

economic

As

the

Southwest—and

by

of

deposits which

great dependence

a

are

Ar¬

in

stock

are

should

rates

terest

help

50

High in¬

stable.

more

keep

making

are

headway

great

Allied

1j.

the

back,

bright.
there
We

local

Of

mitted
and

course

must

to

a

sooner

this

objective.

ments

by

of

bring about the correction
political interference.

without

for

demand

improper

and

P.

1

The year

rewarding in
Company.
the

end

of

39-year history

the

company's

the

of

the

first

for

the

production

paints, chemicals and food prod¬

ucts

under

The

next

of

which

operate today.
marked a period
development, diversification and
19

phase

we

years

consolidation.

We

are

now

in

of

plant expansion
by" the introduction

tated

Glidden

products

and

a

new

necessi¬
of

steadily

new

ex¬

panding
markets
for
existing
products.
By the end of 1957 the Glidden
Company will have invested more

Dwight P. Joyce

than
program.

Cost

$40,000,000 in
of

jpreater than the amount

prior to

the

a

program

invested for

three-vear

is

ex¬

substantially

expansion in the

1955.

In

large part this program has been created by the
achievements of our research and technical
organiza¬
tions in developing new
products and new markets.
As an example, the continued
development of new
consumer

and industrial paints to meet

ments opens up new and
te rapid order.
A few years
ago

—the
the

world's first

interior

specific require¬

financially profitable

markets

Glidden's introduction of Spred Satin
latex

emulsion

paint—revolutionized

home

painting business. Less spectacular
but no less important and
gratifying has been the en¬
thusiastic response to our recent
introduction of Nubelon
Industrial finishes which
provide maximum heat and
igrease resistance for metal
applications. Also stemming
from our intensified
paint and resin research
program
has come Glidpol
polyester resins, used extensivelv in
the growing reinforced
plastics field.
In our Durkee
Famous Foods Division,
Paramount
hard butters which we
produce for chocolate and other
confection coatings have made us
leaders in that field,
fo
that today Glidden is the
nation's largest
supplier
to the prepared cake mix
and other bakerv mix
manu¬
facturers.
The

during

Glidden

20
years
establishment of the

basic framework

years

of

year, Glidden will have largely
completed its greatest expansion of
production and research facilities.

witnessed

10

~

this

The

entire

^

Chemurgy Division, which




and

creates

a

variety of

the

the

1955

and

The

the

underlying
high level

related
our

,

copper-covered

strong

national economy
industrial activity are

of

looks forward

company

A.

T.

&

T.

share

an

a

10

at

$100

par,

shares

KAPPEL
&

Telegraph Co.

received
share of

new

share, for each

held.

Frank

S.

R.

Kaplan

tance conversations increased

10%

the

previous

the

public's

over

To

meet

service

modernize
tem

expended

12

nearly

months.

needs

and

further, the Sys¬
than $2.2 billion

more

construction

for

and

obtained

more

than $1.3 billion of new capital.
We expect our business to

wire

sales

of

telephone

dial calls

This

industry's needs for strong, corrosion-resistant
messengers

in

connection

in

duce

much

largei] rod and wire coils is due
pletion during the first half of 1957.
Operations at our Steel Division, Warren,

for

five-fold

Ohio,

costs

and

The

all

the

the country.

across

last

12

months

and

1957.

*

In

part,

Division's

share

of

the

$12,000,000

expansion program is being
installation ciL.a 35-inch

driven

mod¬

applied,

reversing

in

motor-

blooming mill and a 20-inch continuous billet
The blooming mill is scheduled
for completion dur¬

ing the

second

tinuous

billet

quarter

mill

will

of

1957

be

installed

and

first

the

by

The year 1956

furnaces.
finished

saw

20-inch

the culmination of the
melt

and

the

during

the

the

for

rate

shop im¬
be

quarter-of

new

1957.

program is

When

meet

their

the

finishing

facilities,

will

broaden

the

range.

the

country

W.

the

a

saw

KEELEY

a
month long strike, the steel
industry in
chalked up a near record
production of 114,000.000
Except for the strike, steel output

have exceeded

would

easily

117,000,000 tons turned

harbinger

the

of

production
the

many

1955.

As a

1956

steel

significant

were

end

steel

structurals

at

also,

their

the

that

in

during the final

year

year

out in

future,

the

was

operations
of

product

months
At
for

peak.

market

items such
was

as plates
and
tight and the backlog

of orders to be filled in
1957
The outlook for the

was

high.

in

industry

1957

is

brightened by increasing de¬

mand

for

arise

previous

from

dented

national recognition
gained for

well

for

as

C.

Keeley

there

is

outlook
warrant

pessimism.

The

products which

the

nation's

will

unprece¬

building program as
substantial industrial outlays

capital

caution
W.

steel

road

new

grade of seamless steel
tubing with
improved machinability
characteristics. Additional an¬
nealing and other finishing facilities
currently under
construction will provide a
broader product line upon
completion early in- 1957.
-

service

useful

more

deserves.

Despite
1956
tons.

by 9.25%.

Pioductwise, 1956

and

C.

making possible the

and

President, Vanadium Corporation of America

the

exceeded

Ohio NP-60,

wider

needs

Shipments of tne Ohio Seamless Tube
Division have
been maintained at a
consistently high operating level
without being
materially affected by the reduced de¬
mand
for products of the
automotive, appliance and
fai m equipment
industries served by this
division. Ac¬
tually, a i ecoi d-production month was
attained during
June, 1956 when the
output
record-month

areas,

many

applications pending

responsibilities in

and

completed, melting capacity will be
increased
660,000 tons per year which, with the
additional roll¬
and

increased in
have

totaling $132 million annually. The
vigorously pursuing this program with
regulatory commissions, who we are sure

facilities

which

be

now

are

various

will

to

increases

.

the

need

Bell companies

con¬

enlargement of one of its electric
Enlargement of the second furnace will
third

Telephone rates
and

mid-year. The

battery of two three-hole soaking
pits is expected
be in operation
during the second quarter of 1957.

provements

common

companies

and

to the

financing, and improving service.

with

other businesses we are
experienc¬
ing higher costs of construction and
operation, including
higher wage costs.

were

improve customer service.

Steel

ernization

ing

in

As

use.

many areas

increase

share owners, successful

com¬

maintained during the summer months when
many steel
were
closed down by the steel strike. The
year
saw
substantial progress made in a
betterment
program designed to further enhance
quality, reduce

to

.building

are

more

to

Continuing progress depends, however, on satisfactory
earnings. These are essential to assure fair treatment of

companies

to

directly to

a

we

Kappel

attractive, more
one
example,
half million telephone users can now
pleasant

more
a

ever

R.

new

copper recovery plant—for treating rolling mill
cooling water — was put into operation at Glassport
during the year. A new rod mill project which will pro¬

mill.

is

and

service

Frederick

plan to extend direct distance dialing much further

we

with

and

two

some

overhead lines.
A

coming

growth in telephones of more
than
3,200,000 about equalled the
previous high in 1946 and long dis¬

to

and

the

The

self-supporting

guys

to

extremely busy and eventful

owners

one

stock

new

line

System had

rights to purchase

cables, guy strand and overhead ground wire have been
very substantial. Copperweld wire and strand continued

conductors,

steel

in 1956. We provided more service than ever before.
Earnings of the System for the year are
slightly above
$13 per share of A. T. & T. stock, as they were in 1955.

valuable,

serve

a

year

in

enviable

field,

to

high-quality alloy and

optimism.

Bell

makes

utility

made

report

FREDERICK R.

year.

power

were

elements

President, American Telephone

achieve¬

of

the

most

with

year

copper

communication

the

the

In

'

pansion

_

1957 may well be one of the most significant

and

By

_

of

were
con¬
particularly
tinue its vigorous growth, with cor¬
high. New products for the booming telephone industry
include insulated line wire, both single and
responding need to construct more
paired, and
Copperweld self-supporting telephone cable which com-^.- new facilities and raise additional
plcted its trial period and became an accepted product
capital. The new and improved plant

JOYCE

:

..

of

these

maintained,

copper-covered

world-wide

those

classification.

Provided

steel products—created by
shortage in 1955—was satisfied
all normal production demands met.

the

harmful

Chairman of the Board and President,
The Glidden Company

its

enabled

its

foreign countries.

steels, mechanical tubing,
products and fine wires.

wire

continuing

development
maintain

to

or

the

carbon

position.
High production and new products were keynotes at
all company divisions. And especially so at the Wire
and Cable Division, Glassport, Pa., where the pent-up

Sales

I

and

its

of

new-

the

achievements

program

of

installed

has

increase

through

consistent

better

and
a

sold

of still greater service to users of

national

research

a corrective economic set-back.
h'ope that, when it comes, it will be per¬

DWIGHT

KAPLAN

With

to

result

a

either

shortage

copper

Division

as

Of the immediate future, 1957 will see
the com¬
pletion of the company's $12,000,000 program of
planned
growth and modernization enabling Copperweld to be

realized

were

consolidate

prosperity are
later, and perhaps in 1957,

or

$4.

equipment

ments.

in a setting of
prosperity and a
high level of industrial productivity.
Copperweld has always sought to

international set¬

an

year

a

about

company's

general

be#at least

all

must

for

S.

for

the

of

of

one

Board, Copperweld Steel Company

maintained

products

prospects

R.

'

markets

helped to make the past year
distinguished in the company's
history.
Nevertheless, I believe that 1956 may ultimately be
defined as a stepping stone to yet
greater accomplish¬

espe¬

of the most productive

one

possible

and

doubled

62

of

All

payments in every quarter
period of 21 years.

1956

Kann

dedicated to the program.
or

markets,

overseas

of

its

on

will

year

new

company's achievements in 1956 was the
award
by Financial World of a coveted "Oscar" to
Copperweld Steel Company for the best annual

quarterly dividends of
share in 1956, Copper¬

per

has

The

towards

national

be

of

cents

for

leadership of a very capable and active state
Industrial committee, 1957 should see an acceleration of
that process. We have a cooperative state administration

a

coming

efficiently,

allocations to
Copperweld Steel
Company and reduce its backlog of export
all over |be world. Export
shipments in

from

One

industrial

and

consumer

enter

made

the

of

markets

almost

total

be

Cable

and

1956

new

many

dividend

Under the

Therefore, short of

of the

should

weld

them

satisfactory this year.
Here in Arkansas, although we are
still woefully lacking in sufficient
industrial development to balance our
agriculture and to use its products,
we

the

all, 1957 should be

payment

agriculture have tended to level off.

Earnings

are

During 1956, Copperweld Steel Company attained the
greatest sales volume in its 42-year history. Approxi¬
mately $100,000,000 in sales reflected the heavy demand
for the high-quality products
in-which our company
specializes.
Earnings
per
share of common

one crop

on a

into

FRANK

produced

were

there

examples,

profitable years in the Glidden Company's history.

Chairman

kansas in particular—becomes more
highly industrialized, the peaks and
valleys of loan demand and of vol¬
ume

Wire

•

All
and

favorable features to offset this situ¬
ation.

these

to

more

/

planning to

processes

easing

foreign

year.

the steady expansion of our

areas.

rates invite many of our
patrons to invest surplus funds rather

deposit, there

excellent

introduction

ent interest

on

The

of

variety

wide

a

is

will

methods,
planned.

cially in the Caribbean, South American and Japanese

general

area during
1957 seems on the whole
Although there is no promise of much
in general deposit levels so long as pres¬

inan leave them

produces

Of increasing importance also in the
be

this

any,

which

This

ties.

orders

another

addition

their

quite favorable.

growth, if

foi| 1957 is virtually sold out.

Division,

division

This

manpower

production.

silver-plated Copperweld constructions and copper and
Copperweld cables of heavier current-carrying capaci¬

markets.

KAHN

Rock, Arkansas

banking

output of

our

products being developed by our 22 research labora¬
tories, some of which are undergoing final tests prior to

Chairman of the Board, Union National Bank

The

and

International

In

and

G.

material,

this

of

utilizing

helped to step up

dicates

own

ALFRED

material

and

movement

and paper

turpentine-derived compounds and other chemicals, in¬

indirectly our transportation products.
capital additions in 1957 will be approxi¬
mately 75% larger than they were in 1956.
Our

the plywood

important to

production
Protein

Chemical

industrial

of

is

superior adhesive agent. Glidden is alone

a

Meanwhile, the outlook for 1957 in Glidden's Southern

prime names.
We do not
took for the
cost of money to have
any
appreciable
effect in respect to industrial expansion over all which
of

supply

adequate

as

was

In our Chemicals-Pigments-Metals Division we have
pioneered in the development of Cadmolith red and
yellow pigments which are non-fading, non-bleeding,
alkali resistant and extremely heat-resistant. The result
has been a spiraling demand for these products.

any

or

the

Alpha

nounced.
At

and

industries

the

sembly
due

casein

for

motors, valves, con¬
aircraft, machine

pumps,

trols

Thursday, January 17, 1957

...

Tempo of operations at the Flexo Fine Wire Division
increased in 1956 in response to the greater
demand
for the wire and cable products manufactured
by this
division. A revised plant layout, expediting

industrial

83

Perhaps the greatest increase in sales in
\vill be in the sales of
which

Financial Chronicle

The Commercial and

(280)

goods.

occasioned

Apart
by

from

tight

very little in
for
the
steel

increasing demand

the

the

money,
current

industry

to

for steels

of

Number 5604

185

Volume

The Commercial

.

will be reflected in greater need for ferro alloys
to produce the special steels needed- by
today's technology.
As a foremost supplier of ferro
alloys, Vanadium Corporation of America expects to
participate in the growth contemplated for tiie steel
industry. Last year, Vanadium Corporation of America
undertook the latest phase of its postwar expansion
program. Plans call for the construction in 1957 of two
units of a
three-unit ferro alloy plant in Jefferson
County, Ohio. This new plant, which is close to the
center of the general distribution area for Vanadium
products, will be the third largest and most modern of
all Vanadium facilities.
Initially, it will produce ferro
chromium, silicon and silicon alloys.
all type

DONALD

which

with

1956,

In

Vanadium

Corporation

of

America

income

level.

new

during

ties. The

industry,

for

has

the

light metal.

developing new
industry

now

Chemicals,

another

served by Vanadium, promise continuing demonstration
Vanadium Corporation of America is also vitally con¬

with

cerned

programs,
miller
of

rapidly

the

developing

by virtue of its role as

a

atomic

energy

foremost miner and

vanadium-uranium
ores
on
the
Colorado
Plateau." While current production of uranium products
by law consigned to the Atomic Energy Commission,
widespread commercial use of atomic energy is growing.

is

Barringiunforeseen

events, the coming year should
increased;business for the economy in general and
the ferro :;airoy ihdustry in particular. The restraints

see

lor

imposed by-a, tight credit policy do not appear likely to

hCathy;gfe\Vth of the

dampen
.

economy.

..

It looks for

expansion program.

heavy

despite

1957,

capital
plant.

start-up costs at its new

President,

satisfactory year
outlays and necessary

a very

KELLOGG.

HOWARD

JR.
Inc.

Sons,

Kellogg and

Spencer

a

sufficiency

healthier

of

atmosphere than has existed over the past

Following government controls, including

several years.

the

hign support prices on raw materials
and end products, during the years

succeeding World

War

II, profits of the industry were

rela¬

immediately

tively large.

The picture of such a

inducement for

return, presented an

to enter the field

newcomers

existing

processors

add

to

facilities. The ensuing years

overexnansion of

an

with

a

deficiency

in

measured

this area
budgets. During

by our construction

past five years, OG&E has spent approximately $100
on new facilities, or an average of $20 million a

million

During the next three years, we expect to spend
of approximately $30 million a year. In other
we expect to spend about as much within the
next three years as we spent during the past five years.
These expenditures will include 420,000 kw. of new geiir
crating capacity and related transmission facilities, larger

year.

average

words,

and for

part, the volume

follows along with

Road

homa City.

following:

These include the
*

•

Construction has already started on the new
Defense

.

John P. Kiley

...

Tantalum

Corporation and sole owner of the Tantalum Defense
Corporation, stated that abundant supplies of water,:,
electric power and natural gas played a major part in
decision to locate this plant at Muskogee.

will produce
jet planes, is likewise
It is anticipated that
this project will have a demand of 65,000 kilowatts with¬
in the next five years and will ultimately employ 1,000
people. This represents a $35 million construction project.
Company, which

Callery Chemical

expansions now taking place may
prominent names as Container Corp. of

Ideal

Cement

Co.,

Aero

Design and

Kellogg,

is

to

to

as

curtail

in the

products' of forests, the situation appears to be
At the
present time, the market on lumber,
shingles, and other products of forests is low, and a
decline in home building in 1957 is predicted. Plywood
is still very much in demand and its movement is in¬
creasing steadily. I predict this company's traffic volume
In

Continued

raw

materials
fin¬

Brookline Savings

supply, stemming from

government

emanating from the field

and

Cash
U.

segment of our econ¬
essential and few, if any,
are in the
luxury class. Thus the ordinary vicissitudes
of business
cycles are less extreme in vegetable oil
processing than in the economy as a whole. While profits
are low in terms of investment and dollar sales lor the
industry is

a

reasonable

in
attained
ingenuity of the leaders

Improvement *s necessary

lines-but t; feel confident that

through the
in

return.

our

perseverance

field.",

•




.

...»

amount
with a

and
.

it will be
_

*

1955

2,571,654.08

4,391,773.19

Bonds

1956
Dec. 31, 1956

$

2,688,892.83

4,675,447.03

Mortgages

1,358,595.90

419,212.61

Owned

Building

2,379,657.88

15,773,8)5.97

1,263.737.76

Securities—

and

B<»nds

2,104,733.03
13,672,697.71

406,580.72

Fixtures

mid

46,575.78

47,868.53

$24,470,384.16

Other

*$27,330,858.86

13,090,370.63 $21,054,436.78

179,011.52
53,184.15

$23,474 693.10
228,724.99
67,233.69

802,474.29

901,233.99

500,000.00

500,000.00
1,750,000.00

Assets

—

LIABILITIES—

Demand
Time

Other

$

9,072,307.97

$10,384,322.47

11,982,126.81

__

Checks

Official

Dec'. 31,1956

Dec. 31, 1955

Deposits:

Outstanding..-..,-

Liabilities

Reserve

for

collected

interest

but

not

earned

*

Capital:'
Common

The

incomparable Rekordesk
is the world's only

Stock '

-

1,600,000.00

Surplus
Undivided

Profits

for financial records

$24,470,284.16

by 64% of fhe nation's
leading savings institutions.

ItltOOKLIM:
Savings ami Trust
rinirtw
Two

INCORPORATED

CANTON,
Pre-eminent

0H10^g»fr

Since

820
426

18S9

Convenient

Member

of

Locations

Brookline Boulevard

McNeilly Road at Sussex

PITTSBURGH
Federal

Deposit

26,

PA.

Insurance

•

$27,330,658.86

and

used

,

408,973.09 '

281,277.42

-

electrically operated record
safe—designed expressly

live and vital

basic products, large volume and an increasing
specialized items are providing the industry

fairly

$

Banks

from

Most of its products are

of

some

Due

Government

S.

Other

are

alkyd resins.
The

Dec. 31,

ASSETS—

planted to cotton and tcr re¬
While the program is beneficial

centered
mainly in industrial rather than edible lines. Adhesives,
paper coatings and protective coatings are using greater
Quantities of refined linseed, soybean and castor oils,
developments of the huge research centeifs of the oils
industry. Linseed oil as a weather-proofing compound,
oil base paints used for water-thinned finishers and soy¬
bean oil as an organic coating material are a few new
items added to the long list of achievements accom¬
plished by our researchers.
Soybean flour is becoming
an
increasingly large ingredient in our dietetic breads.
Poultry and other livestock are feeding on a specialty
soybean meal, a product rich in protein and low in
liber, which is obtained from dehulling the bean. Degossypolized cottonseed meal has found acceptance for
poultry feeding, where ordinary cottonseed meal was
barred several years ago. Soybean oil has become the
accepted base in the large and still-growing field of

omy.

and Trust Company

1955 and December 31,

of December 31,

as

•

products

page

the

of

are

Lank

New

on

STATEMENT OF CONDITION

COMPARATIVE

products. This was especially
in soybeans. This year the sup¬

run,

will be lifted.

in coke

crushing units,

the immediate result is impairment of
crushers' profits. It is hoped that eventually this burden

long

partly

in shipments of ore

expected

also

are

to their
reflected

acreage

heavy inventories.

coal
and
account of road construction. In¬

mixed.

Engineering Co.

operations plus a wholesome demand
for their products. In cottonseed, the

is true

reverse

controls
duce

Jr.

,

....

steel strike in 1956. Some decrease
movements is expected due to local conditions.

(manufacturer of President Eisenhower's six-place per¬
sonal plane), Ralston-Purina Co., Sylvania Electric Prod¬
ucts Co., Pillsbury Mills, Hazel-Atlas Glass Co., Dixie.

not overly burdensome and
crushers can be assured of capacity

H.

■

■_

ished

plies

conditions in 1953

products of mines, an increase in tonnage of
expected of about 5%, with increases in sand

In

creases

be listed
America,

availability and demand for the
true

average,

because of the

Muskogee.

Among the

crease.

gravel of about 10% on

high energy solid fuel for Navy

such

than

and a decrease in
movement from the range states in 1957* is anticipated.
About 35% more cattle are being fed in the Corn Belt
than a year ago, and more will be moved to market
in the next few months than a year ago. An increase
in the movement of hogs is expected. Movement of meat
and packing house products should show a small in¬
heavy

forced

This plant will produce .metal powders
tantalum and columbium, two rare metals,
through electrochemical - and related processes* rather
than by smelting. In breaking ground for the plant, Dr.
Frank II. Driggs, President of Fansteel Metallufgieal

under construction near

although, if the

and; products, dry range
marketing of livestock

In animals

Corporation's plant on the Arkansas River near

arid ingots of

a

1957- crop is
there will be
some
increase; a 10% decrease in
corn is expected, but a 15%
to 20%
increase in other grains is probable.
1956,

better

industrial plants are under construc¬

planned in our service area.

or

wheat

of

a-

A number of new

tion

about the same movement
is expected in 1957 as in

storage,

operating headquarters in several divisions and an addi¬
tional six stories to our General Office building at Okla¬

The

flaxseed and soybeans, two of the
main segments of the vegetable oil industry, has created
A

be

can

bright.

company's faith in the future of

own

Paul and

of traffic on The Mil¬
the trend of the gen¬
eral business picture throughout the country inasmuch
as its traffic is fairly well diversified. Special conditions
arise,
however, which may affect,
one commodity group more than an¬
other. Over-all, I expect an increase
in freight traffic volume over
the
year of from 3 to 5% with the first
hall' being slightly better in com¬
parison with the similar period of
1956 than the second half.
In products of agriculture, with a
lower grain crop in our area in 1956
and
much
of it going into farm

Muskogee, Okla.

Vanadium; Corporation of America has indicated its
faith in the -economy by proceeding with is accelerated
in

tinues to be
Our

an

dynamic growth.

of

new

KILEY

P.

Chicago, Milwaukee, St.
Pacific Railway Company

most

For the

waukee

retail trade
high levels.
Therefore, the
picture in Oklahoma con¬

expected to increase

business

ivennedy

President,

"*"■

'
J.

a

to

expanded

the two serv¬
and safety of

living.

building should continue

healthy pace. The petroleum in¬
dustry will be stimulated from de¬
mands created by
the Middle East
crisis.
All of these economic forces
at

brightened not only

example,

since the war, and is

the first time

for

and

are

production sufficiently to be able to meet demands for
uses

im¬

electrical

with

residential

o.

a

ices and

petus from the highway program

uouaiu

average

approaching convergence of prices of
the superior cleanliness, comfort

of the

irraprove-

The

7.

aluminum

The

agricultural economy, which
from drought and low

higher farm prices.
construction industry will gain
ment

Operations at the company's Niagara Falls plant during
half-year reflected the loss of the plant's source
of low cost hydro-electric power destroyed in a rock
are

and many established
expanding their facili¬

prices, is expected to show

the

that in many
substantial field

suffered

has

the last

prospects for 1957

1956,

industries are

other nationally famous concerns.
residential consumption of

many

that

expansion and

for

continue

will

fact

fruitful goal for the power sales
organization. As an example, the saturation of electric
ranges is only about 10%; room air conditioners, about
22%; electric water heaters, less than 1%.
Although
natural gas in this locality presents greater competition
to electric service than in many other places, more and
more customers are accepting electric codking and water
heating as the normal mode of life. This is true because

and

production

of

for the year.
with over 100
industries started in the State

expansion

enjoyed

by anticipated record steel production, but by optimistic
forecasts for other industries served by the company.

sources

expected to show good increases

are

Manufacturing

good year. Sales reached a new peak and net income
exceeded that achieved in 1955, despite the steel strike

Vanadium's

basic

All

and

Co.,

The

electric energy in Oklahoma is lower than
other parts of the country provides a

Oklahoma's business outlook for 1957 continues on an

a

slide on June

Cup

KENNEDY

S.

President, Oklahoma Gas and Electric Company
optimistic

85

(281)

and Financial Chronicle

Corporation

<S6

£8

Continued from page

r

and miscellaneous,

increases

)•

Overland

Streamliners

with

the

Pacific

Union

of

initial

confidence

in

service

of

our

trade

growing demand for its utility services,

of

the

two

Net

income

for

of

fall

short

1955, which included

of

The

1942 to

than

more

1956

terializes.

The

Interstate

1947.

if

the

1957

should

Commission

in

Ex

Parte

No.

be

There

196,

ditional

increases

return"

case

bility

of

as

the

sought in

a

the so-called

of

means

railroads

of

"rate

S.

Northern

situation

continue through 1957.

chasing

of

When

States

dential
(,

Power

home

new

continued

numbers

enjoying,

the

as

Power

that the trend will

to. the

in

of

in "the

and

customers

of

about

exclusive

'

14,500

of

volume of

being maintained
the

of

yeal*.

maintained

about

Residential

9%

a

Allen

S.

NSP

will

to

show

were

12%

up

King

sales

last

the

to

18

establishment

months

there

substantial

gains

in

new

215

the

of

cases

employees.
The
non-manufacturing category, which includes of¬
fice and business
buildings, department stores, theatres,
hospitals, schools and the like, also used 12% more
in

energy

1956

than

in

operation^,

1955.

The

the

facing the
different

than

dustrial kilowatt-hour sales
increase.
The volume of gas sales increased

in

1956,

6,900

were

made

To

take

degree

days

additional

over

gas

care

of

the

heating

in

in

1956

space

Operating
total

of

NSP

$139

6.7%
for

million, representing
Earnings for the year 1956

39oo.
per

revenues

was

share

pared
shares
The

with

on

the

$1.16

14,089,328
per

share

a

All

in

for

year

than
1956

1955

C.

>

is

to

amount

to

outstanding
on

the

outstanding.
company's construction expenditures

the

over

$1 20
com¬

13 418 408

1957

are

of

favorable

factor

is

for

year

the

opinion

another

continual
by
The

1955

my

that

we

such

debacle

in' 1929 Ho

opinion, will

by

make to

can.

as,*-we

1932, which,

in

my

to pass unless the

come

present-day. labor .monopoly

brought
*•

ri

ernment in the

do

in ,our

ized

near

the

is

gov-

•

Failure

future.

5$

can andkmay
ending with/a social-

this, I

result
.

to

by

under control

believe,

economy.

Allan P. Kirby

;

of

are

based

on

the

past.
The prosperity of 1956 was
certain forces which continue to offer

aV

"

FRED LAZARUS, JR.

President, i Federated Department

1:

We ht Federated like to keep
five.

■}

This

deal with

xve

Stores, Inc.

forecasts conservapreference becomes especially marked when

*

our,

period like 1957. We

a

trends in the

ahead.

There

seems

'to

be

a

first

This

half.

what

is

department

income

will

for

1957

is

of

."
V...
expect department store sales

increase

to

what

about

3

to

the

call

we

Fred Lazarus, Jr.

by
the

among

for

no

somewhat

generally is for a high
business .activity there is
also every evidence of a
continuing
pressure

of

ume

;

or

business

greater

which
rower

will

are

become
tern
C.

Lawrence

a

is

be

On

points to

very

in

1957

the

equal

that

of 1956
transacted at

a

a

in

major

factors

over last spring
spectacular per¬

ahead -of

to
but

nar¬

reality

normal

our

or

readily
anticipated pat¬
One

conflict.

.

acceleration of inflation.

such

a
real
danger which is further inflation.
definite need for
monetary and fiscal policies
which will assist in
curbing spending and holding it
within the bounds of our
a

productive capacity.

relatively small and in addition

plant which is measured in

moves

boys and girls
Because
in

1955,

tribute

did

As

up* an

11

to

12

the

as

of

wave

show

post-war

bracket/ apparel sales for

age

old will: increase.

years

housing starts

new

were

fewer

in

1956

than

furnishings of all kinds will not con¬
importantly to the 1957 sales increase as they

1955

and

early

increases

to

and

and,

home

as

in

spring

1956.

than

goods

lines

even

goods,-vv/,, •
been a tendency in

prices, there has

soft

Hard lines may

show

soft

toward

small

some

advances

by

hard

manu¬

facturers due to wage increases.

Deliveries today

are

very

prompt, and

we

no sign
scarcities.

see

Quite the contrary.

poses

our

youngsters

this

of

ex¬

pected

product of

gains

fashion

accessories probably will continue to

The

goods and services produced in the United
States
by a substantial figure. While this
picture of full em¬
ployment and expanding production is
encouraging, it

There is

good

is

new

also

apparel and

broad categories of merchandise,

Another

increase in spending in com¬
paring 1957 with 1956 will push upward the
gross value

of

Among the

they

would

economy.

military

if

industry

the

sales will be increased by those of Burdine's in
Miami, which did not join Federated until the end of
July, 1956, Federated's figures will be substantially
higher.

smaller

which

The

sluggish period;

was a

its

vol¬

a

profit margins.

change
Howard

than

costs.

on

season,

Because of this and because

average.

while

of

.whole this situation

during

5%

spring'

which is Feb, 1 to July 31, 1957.

formance. Federated has usually run

'the^outlook
level

increase

1957....
We

spring of 1956

for

But

to

moderately at least until the middle

our

generated

good.

the

disposable

consumer

continue

.

look

for

in

1957:

believe

We

a

economists that the business out¬

our

see

we

business,

store

first half of

is

experiences

consensus

not sure about

are

half of the year. Therefore, prudence
dictates
caution
in forecasting the

last

calls

promise

months

:

8

p:

cost.

business

President, Grand Rapids Varnish Corporation

Our business is
for

fields

KIRBY

confirmed

say

LAWRENCE

All predictions of the future

to

will

10%'increase

will

then




have

^ had

do business,

money

challenges which
thinking and advance

therefore, this gain

HOWARD

7%

loads and

in

all, 1957 should be another good

In
installations

greater

the

shares

One

There

electric

increase

P.

at that time.

industry.

heat¬

*mi

which

somewhat

I -wrote

buyers and tight money, these can be more
than offset by the
extensive style changes and the
steadily increasing use of credit.

over

generating unit at its High Bridge
plant in St. Paul.
This brought the NSP
system generating
capability to
irttZr
kilowatts. The system peak (simultaneous) for
on ^ecwhen the demand reached

1,171,495 kilowatts,
peak of a year ago.

is

less

1955

provide for the anticipated
growth in the coming years,
the company
placed in service another 100,000 kilowatt

i

1955,

probable increase in auto sales during the coming year.
While there are negative factors
regarding sales, such as
slightly higher prices, lack of trading equity on the part

in 1955.

increase

is

we

division has been greatly
We, now plan to con¬

these

them.

upward

17%

season, involving a
the previous year.

space

compared to 8,951

offset the

to

construction

1955, reflecting the further development of
ing sales, and the colder heating
increase

15,

problems and each will seek somewhat

same

answers

buildings
the
non-manufacturing in¬

to

situation
in which

hold

companies in

large shopping centers and the completion of addi¬
tions or modernizations of
numerous
office

contributing factors

the

few years.

mast

of

were

the

our consumer loan

more

of

establish¬

ment of new industries or the
substantial expansion of
present industries in the NSP service area with an addi¬
tion of over 5,000 new

electric

that

say

earnings

Increased

were

Dec.

statement

we

finance, this is possible—
competitive situation. In our

this Expansion,

Each

of late

of

only

can

of

customers to whatever extent

In almost every state

bapd,

that will

manufacturing establishments

1955.

over

other

kilowatt-hour sales

manufacturing ac¬
plants, and the con¬
tinuing rise in use of electricity brought about
by
automation were factors
contributing to this increase.
Our Area Development Department
reports that in the
tivity,

I

sales

with the size of the average loan balance
increasing
in this expanding
economy, we expect increased

residential sales.

Kilowatt-hour

loan

our

of

regulations impose a ceiling on the rates which can be
charged for consumer loans.
Obviously, our "cost increases
cannot be passed on to the customers. On the

annual

continue

to

be met

can

of the

one

which I expressed to you under date

years,

and

decline somewhat from 1956 levels, it is anticipated

that

last two

Faced with these cost increases,

on

field

will

This will

President, Alleghany Corporation

;

">

operating expenses at
present levels and concentrate on increasing the operat¬
ing income of'existing branches. Through this program

growth as a result of
additional customers and the
increasing use of electricity
in the home.
Although residential construction in 1957

may

the

is

ALLAN
f

have already had four in-*

rate in

the realities of

solidate

at almost the level

preceding

it

the

expanded in the

terri¬

home construction is

new

prime

part

planning.

v

aware, we

stpnd.

pass

can;" In

com¬

>

•

This

which requires clear

*

t

and; I
jhat it is generally-felt that the pressure f6r higher
interest rates are .stronger than the pressures to let the

within

1955, indicating that the

"

\

>

low level of credit losses.

good.f

4As. everyone" is

management,

forces 'in

threat to the future.; They

a

action.

you

we

acquisitions. The increase in
residential customers was nearly the
as

'

,

face and

correction I would

attempt to

in¬

torial

same

-

are

proper

what

present rate

expanding

2.8%

King

think

resi¬
to

They

by
we

ors

creases

Labor

other occupations.

into

channeled

be

is
/
v

steady rate,*
business

a

area.

increase

an

about

Maxwell

prosperity.

a

to

business

and

continue.

will

events''more

different.

or

also have

profit margin equal

gross

V

technology

by

re-examine all- your practices and you
begin to get more critical and more selective. All this

•-

,1 !

you

consumed

showed

are
pur¬

line.' Yojll

the

Company

continued through-

are

result

construction;

residential

>

addition, when youTace a limiting factor like tight
money, it can have a very "healthy Effect on-the tone
of your entire operations.--You sharpen up—all along

sales moved upward at

Electric

total

a

a

"

;

to

trends

•past.
/

have full employment plus a--lot of overtime
of stable used car market we have been

you

mercial and industrial kilowatt-hour

reflecting the
activity of the

—

are

enlarged activities in education and training.
'Thes'eTchanges cannot take place without creating prob¬
during the transition period.
Economic fluctua¬
tion and unemployment are not solely a matter of the

plus the sort

North¬

of

Company,

customers
in

crease

power

we

of handling a larger volume

lems

affect

These

use

for

call

money

ascending

to

product

every

past

years

have

economy

which

favorably.

\

full employment and

As measured

sales

gas

our

return

these

course,

"tight"

the

conditions

are

business

our

KING

States

out 1956, and present indications
and

generated

1956.

of

■stimulated

our

compensations, too. The

conditions .in

which

of

advanced

.

satisfactory

generalities it can be added that for
increase in production has far out¬
distanced advance in employment. It is inevitable that,

"Tight"

money.

our

production has had either a recent price in¬
or is facing an impending advance in price. While

that

some

how well

on

combination

a

in

result

will

1957 in order to maintain

..To

which

to

it will be

course

which

in

Fi¬

affects

Of

to

In

..^activity'that begarm,mid-year 1955

ern

this

manage

overall

the

by electric

extent

situation

but it has its

territory served by Northern States Power
Company, the upward trend in business and industrial
-%.*

The

word.

mcney

we

to

ALLEN

In

Pacific

At

money.

1957

aggres-

hope to recover a portion- of this added cost,

we

*■/

an

the movement of the economy

upon

area.

factors

reconciled to the necessity

we

varying opinions

money-creates- problems,

capital improvements.

President,

enmeshed
many

profits depends directly

for pay¬

15%

the

the

boosting the financial sta¬
provide funds for more

and

loans,
in "both.

consumer

compare

upon

purchase in the form of raw materials for

we

our

crease

operations include automobile sales

our

do not consider the present
situation a catastrophe in any sense

supplies, and other items.
imperative that the Commission authorize the ad¬

is

are

"tight"

on

ized in Ex Parte No. 206 will be about
adequate to meet
increases in wages but they will be insufficient to meet

It

and

in

nance, we

wage increases and fringe benefits which
became effective Oct. 1 and Dec.
1, 1955, and unem¬
ployment compensation tax rate increase, effective Jan.
1, 1956, to the extent of about $2,500,000 for the year
1956. The wage increases granted, effective Nov.
1, 1956,
to nonoperating employees and to the firemen, if
granted
to the other operating groups, will amount to
about
$8,500,000 annually. The increase in freight rates author¬

expenses

Since

deeply

were

resulting from,

new

*

most

financing

effective March 7, 1956, failed to meet the revenue needs

emergency needs resulting from
roll taxes, fuel, material and

two

auto sales.

expected volume of traffic ma¬
in freight rates granted by the

increase

Commerce

Net income for

as

At

important topics during the past year,
from the standpoint of a company engaged in the grant¬
ing of consumer credit, have been "tight" money and

$2,660,951, representing interest on refund of Federal
on income, amounting to
$8,921,203, applicable to
years

us

that

equaling the

non-recurring item

a

taxes

the

KING

President, Pacific Finance Corporation, Los Angeles'

will

1956

C.

we

sales if the year proves to be as
we anticipate it should be.
the moment we find that nearly

gross

MAXWELL

are

solely

depending

>•

■

of

policy to accomplish this objective rather than

sive sales

v.

percentage when
relying, however,

same

We

1956.

with

in the area. These long-range plans involving
expenditures of this magnitude are necessary in order
that NSP may at all times be able to supply the steadily

is eliminated.

net income of

least the

at

of

■

economy

and

cus¬

users

paM decade.' The year .1956 exceeded 1955 in this rese$£$ by 10%. We are anticipating an increase in volume

continuance

a

uniform

and

our

We have enjoyed a relatively satisfactory
increase" in our: sales volume over the

!o»r-products.

States Power Company reflects
of stable growth of the

penditures of Northern

Southern Pacific trains since Oct. 30, 1955. Some reduc¬
tion in passenger revenue is expected as unprofitable
train

the

expenditures for

four-year construction program totaling $200
The long-range planning- of construction ex¬

a

million.

major

in most
products,

an

which is definitely of advantage to the

part

ex¬

are

commodities, such as iron and
agricultural implements,
automobiles,
machinery, cement and canned goods, with movement of
gasoline steady.
There were gains in passenger traffic in 1956 aside
from new traffic resulting from joint operation of the
pected

iteel

supply
tomers

This includes some

$43 million.

at

estimated

ol

tion in the over-all movement.

manufactures

and technical service to

advisory

$2 million

156,000 kilo¬
watt
generating unit for High Bridge station that is
scheduled to be placed in operation in 1959.
This is

estimated

85

expectation of greater participa¬

will not decline in the

In

CommerciaUmd Financial Chronicle.;. Thursday, January 17, 1957

The

(282)

the

gallons,

we

of

Inventories
little

been

Good

In

all

Christmas

sales

probability, half

volume

increases
up

that

and

out

grows

reduced

troublesome year-end

a

dollar

inflation

of

going into the spring season may be a
heavy side but still within manageable

the

on

limits.

fore,
to the

kind

of

to

sales

the

or

will

trend

what

could

have

inventory problem.
more

be

due

among

of
to

spring's
the

gain

in

small price

consumers

to

trade

that is, to buy higher
quality merchandise. There¬
if sales in dollars
gain 3 to 5%, the number of

units

sold,

If the

or

tonnage, will increase

physical volume

of goods

very

little.

moving into consump-

a

Number 5604

185

Volume

.

.

The Commercial

.

and Financial Chronicle

only slightly next spring, will production
consumption temporarily? Our plant capacities
substantially expanded in 1955 and in 1956.
There seems to be a sound consumer demand for the
goods the plants make, backed up by rising personal
increases

tion

ELMER L.

outrun

President, The Cleveland

been

have

the

move

To

output

the enlarged

of

plants

requires,, according

however,

consumers,

to

to

Northeast Ohio long has played an'important role in
nation's economy. It is a
region characterized by
mversmed industry,
high productivity, and rapid growth,
ihe predicted
high level of industrial expansion across

the

the

today's

volume.

•/ * '

-

the

Will

necessary

<.

.

.and

continue

to

be

<\

Ohio

the

.

Best

LEAVEY

International Telephone and

and

this

time since the end of hostilities in Korea,
it is likely that the course of business here and abroad
For the first

12

next

me

will

months

by

than

political

be

determined

decisions,

economic
national

than

ments.- Caution

bent

it

as

the

upon

seeks

another year;

is

therefore

chart

but I

TTv

the

Near

East

in

set

and

motion

nf merino'

Central
forces
nil

.*

now

material,
Edmond

H.

^

and

A..

*

weakening of
&

pre-

problem. American action
will undoutbedly check the financial

Lcavey

allies—but at The

our

price of postponing domestic tax reductions
have been reasonably expected..

that might

otherwise

Whatever sacrifices are made will seem small, if they

M

bapner-line "The

1945

other

institutions

civic

all

of

stamps,

These efforts will continue throughbring us Tim same

ahead.

year

chemicals

although

and

metals,

automotive

and

see

ferrous

aircraft

and

e

parts,

behind.

compared

with

a

.

.

reduction

slight

the

in

1956,
national

anticipated industrial and residential expansion
course put substantially more load on our lines.
We expect kilowatthour usage per customer to increase

.12 Percent during the year Residential usage, for exampie, will rise from the 1956 level of 2982 kwhrs. to an
To

plant
tures

And

we

cope

also expect to add 16,000

--;:;f-,v~

with

this

growth,

-

siren song

the land.

of

public

During the year

power

advocates will

chambers throughout
economic theoriz¬

These devotees of distorted

ing will take us farther along the road toward
of

socialization
and its

This
in

the

opinion leaders

are

unless

industry,

power

complete

the

public

fully informed of the facts.

presents our industry with its biggest challenge
It

1957.

is

a

urgent import, not

most

matter of the

American public.

the

At

present,

more

than

fault of

no

this country's

of

percent

20

through

customers,

their own, are
Proponents

tax-subsidized by the remaining 80 percent.
of

government power are anxious to increase that pro¬

portion.

|

largely around the ques¬

The issue in 1957 will center

tion

of atomic power plants.

come,

and therefore an obligation to become

informed

If, in
foresee

a

a

This will be a year of de¬

Every businessman has a vital stake in the

cision.

a

year

of such intensive business activity as w^

ahead,

matters

bitter price

as

vital

.attention,

this

as

fail to

receive

will ultimately pay

we

for our neglect.

expansion program for 1957 involving expendi¬
of some $46 million, highest in our history.

Continued

on

page

us peace.

satellites of Russia is there any immediate pros¬

ropean

best
we

Even lor

of peace they knew.

pect of the kind

SAVINGS BANKS TRUST COMPANY

us^tl|e

presently be hoped for is more of What
have learned to call "cold war"—with its govern¬
that

ment

can

high

controls,

disproportionate "levy

and

taxes,

14 WALL

de¬

total production for purposes of

each nation's

upon

'ft,

fense.

-

Organized

and

hy

owned

wholly

STREET, NEW YORK, N. Y.
the

Mutual Savings

This is, of course, the kind of world we have been
living in for many years. Its danger is not so muchTlie

SAVINGS BANKS TRUST COMPANY is the

threat

sively

of

will

our

view

that

to

ultimately dullipg

of

as

regain that relaxation of controls upon free

to

enterprise

crisis broke.
nation

disaster

immediate

If

regain

with

as

a

nation do not lose our

ground

the

alarm

beginning when the present
determi¬

just

was
we

the

either

lost,

I

see

immediate

no

or

Banks of New York State,

savings hanks' hank, serving them

exclu¬

and trustee; also a research
matters of interest to the Savings Banks

depositary, correspondent, investment consultant

hody and clearing house for information on
Association and its members.

to

reason

more

as

DIRECTORS

distant

future.
And

if,

as

well be the case, the United

may

JOHN A DIKE!?

Nations

justice to

President, Jamaica Savings Bank

East, and freedom without further bloodshed
oppressed satellites of Russia, then we shall- h.e

of bringing peace with

capable

prove

the Near
to

the

able

to

look

back

current troubles as one of

upon

his¬

tory's great turning points, leading to such peace, pros¬

perity, stability,

PERRIN L.

and

E. LESLIE BARNARD

Rome, N, Y.
'

ROBERT A. BARNET

President, Gardner-Denver Company

At

'

Our line

of products are sold primarily to the indus¬
construction, mining, and petroleum industries.
After
analyzing our potential sales in all purchase areas
for
1.957, we project a very satisfactory volume of
business which should result in some

trial,

increase

over

sales

1956

our

of

Plans
and

°f

additional
in

and

the

10%

in

ahead.

year

construction

Irving Savings Bank
New York City

CHARLES W. CARSON

President, The Community Savings. Bank

plant

CHARLES R. DIEBOLD

take

care

vol¬

of Buffalo, Buffalo, N. Y.

divisions

are

BRYANT GLENNY

|

ex-

Buffalo, N. Y.

During the past year, GardnerDenver Company Canada, Ltd., the

EARL

President

company's Canadian subsidiary, pur¬
the
in

former

the

production

panding

for

and

a

enable

Canadian

economy

has operated
ture

will

of

G. V. Leecg

"

*

plant in Branford,

service

its

products.




Bank

City1

THOMAS II. HAWKS

President, Rochester Savings Bank

of the 50,1)00^

to keep its
in line with the ex¬

Since

York

*•3

Rochester, N. Y.

the company

markets

Canada.

IIARKNESS

New

company's

foot plant

New York

City
^

KILGORE MACFARLANE, JR.

Bank

President, The Schenectady Savings

Schenectady, N. Y.
CLARENCE G. MICIIALIS
Chairman of the

Board, The Seamen's Bank

for Savings in the City of Neiv

York,

Neiv York City

JO TIN I. MILLET

Troy, N. Y.
GEORGE O. NODYNE

President, East P^iver Savings Bank
New York City

,

»

f

DANIEL T. ROWE

Woodstock,

products in Canada. Addition of
the manufacturing capacity
square

Bank

President, Union Dime Savings

and Chairman

The Greenwich Savings

Bickle-Seagrave

Ontario.
Thepurchase of this plant is part of an
expansion program for manufacture
°f

J. WILBUR LEWIS

President, Buffalo Savings Bank

increase.

chased

Bank

Brooklyn, N.Y.

President, The Troy Savings Bank

Industrial

Pif?*e.d to contribute substantially to
this

plant

President, The Williamsburgh Savings

President, The Western Savings Rank

sales

for

made
expansion to

facility

an

ume

American

of the Board

of Rochester, Rochester, N. Y.

being

are

Chairman

ap¬

proximately $63 million.

Brooklyn

Brooklyn, N. Y.
JOSEPH A. KAISER

\

President, The Rome Savings Bank

LEECE

GEORGE C. JOHNSON

■

goodwill.

V.

York City

Syracuse, N. Y.

happiness as men have not here¬
For the great problems of today
of science or technique, but of wisdom

G.

New

President, The Dime Savings Bank of

earth.

on

not problems

BABCOCK

President, Onondaga County Savings Bank

and

tofore known
are

AUGUST IHLEFELD

President, Savings Banks Trust Co.

Jamaica, N. Y.

should

1950 the company

Ontario, to

manufac¬

JAMES R. HUGHES. JR.
First Vice President, The

|

Savings Bunk of I lica

I tica, N. Y.

President, Kings Highway

Savings Bank

Brooklyn, N. Y.
EARL B. SCHWULST
President and Chairman
The

out¬

completely

about the facts.

.their full share of our

-—

blueprinted

have

we

the

continue to be heard in legislative

..

The

custom era..

a

word of caution to all Americans.

a

power

will of

new

1957, when

early in

ahead,

and

figure.

expected 3185 kwhrs.

of fuel transportation will

method

Notwithstanding the optimistic outlook, there is need
for

-

percent more housing starts here than in
0
.

new

eration

non-

year

1
as

1959.

go into op¬
108-mile pipeline begins
moving coal from mines near Cadiz, Ohio, to our Eastlake plant.
The finely-ground coal will be mixed with
an
equal quantity of water to form "slurry," and will
be kept moving through the pipe by three pumping sta¬
tions. The pipeline, first of its kind in the United States,
will carry about 1,250,000 tons of coal a year, 80 percent
of the Eastlake plant's requirements. It was constructed
by Pittsburgh Consolidation Coal Company at a cost of
$12 million.
A

only to ourselves, but to businessmen in all fields and to

be such key indus¬

both

and

1958

Nation."

by banks, cham¬
utilities, railroads,
industrial,
commercial,

since

of our

But our generation has learned to accept
a definition
of peace that would not have satisfied .'our
fathers.
Neither in the Near East nor among the" Eu¬
gain

iS#

year

is foreseen, too, in housing construction,
with the area receiving substantially more than its pro¬
rata share of national construction.
The year should

Europe

dislocations of trade,
that, a year ago,

no

as

nc-f ..T3i»r>_

increased costs

sented

record

a

in the

Location

expansion in the

A good

affecting all of us.^^ Pro¬
duction plans in both hemispheres
must, to a greater or less extent,
reckon
with
possible shortages of
even

the

machine tool manufacture, will not be far

in

thaLare

nl

of

ferrous;

for

events

with

Leaders in industrial growth will
tries

for

see no reason

that" recent

know

have

ihcum-

course

pessimism.
We

share

community,

its

for

is

which is associated across

area

1957 and will, we are confident,

out

more

business

to

dustrial expansion.

by international develop¬

by

for all Northeast
In fact,

to our system

the addition

marked

year

largest generating unit, Eastlake No. 4, with a capability
of 240,000 kilowatts. Two slightly larger units, of 250,000
kilowatts apiece, are now under construction for two
of
our
three other plants, and will
be installed in

sistently obtained three percent of America's annual in-

by

more

of

region, with one percent of the nation's population
two percent of its industrial productivity, has con-

and

.

for

year

total

bers of commerce,

tnner

Telegraph Corporation

X V

should

year's

Largely because of the area devel¬
opment efforts carried on under that

and

President,

busy

prospect

America

,slogan
H.

a

plant

last

•
...

EDMOND

new

business and industry.

in the

Question may come into sharp- focus inv the first
half of 1957.
•''aA
'■•A'.''■•'.i,

That

this

in
in

Investment

expanded

will be

.

supply? If this occurs, a lower standard of living'.must

1957.

reflected

be

easily
$840
million. With a good possibility that
the FRB index will rise to 147, it

available? In other words, will there be enough fiscal
and monetary support for a larger national output and v
consumption, or must both the demand and production
accommodate themselves to a limited money and credit
result because of pur substantially-increased population.

in

will

beyond

go

-

credit

consumer

nation

'area

processes, a substantial amount of consumer credit. The
users of this credit seem "to have handled it in a respon¬
sible fashion, but some financial authorities question
its

Last

LINDSETII

Electric Illuminating Company

tne

incomes.

87

(283)

Bowery Savings

Bank{ New York City

HARRY F. SMITH

President, Netcburgh Savings

Newburgh, N. Y.

Bank

88

The

(284)

83

H.

President and General Manager
Arizona Public Service Company

>

Valley of

the

to

confined

largely

We made about

and

area

to

880

over

dollars.
loans

.

with

totaling
The

has

paid

dividends-

great

continue

will

benefit

to

cities

activity

Mining

pected
Arizona

leads all

domestic

is

state

of

the nation

in

of

Lucking

mining

look

for

production.
10

a

to

15%

Net

volume

This

construction,
particularly commercialbuildings, will surge upward. Residential build¬

type

ing should at least equal last
Governmental

spending

expected to be considerable.
governments

have

construction

projects

plans for

road

is

dled

and administrative build¬
Federal construction spending

on

on

the

place

projects

millions

of

the

within
in

dollars

the

Although total agricultural acreage in the state has
declining at the rate of 50,000 acres per year for
the past three years, this has not meant decreased farm
the

of

It

has been

reach

estimated

that

Arizona's

1,125,000 by July of this

the 12-month

1957

Our

the

geared

40,000

state

plus

facilities.

to

take

of

care

organization

business

more

mile service

square

entire

this

is

year

at

and

cash

out

in order to provide
reasonable

having

believed

we

types

of

exceeds

purchases.

to believe that the
a

year

real.

ago

was

By the

We

same

token,

we arc

clined to believe that the lull

today is

mand

in

As best

we

demand for
that

of

1956.

We

expect

strong demand from the
be

augmented

from

the

rest

by
of

that

U.

growing

the

A number of new

S.

announced.

If

all

of

David L.

ex¬

Luke, Jr.

ment

have

these

on

of

of others.

Of course,
postponement and abandon¬
projected plans minimizes the probabilitv of an
of capacity.

ment of'
excess

We

have

largest

round

of increased

costs

made

in

felt

our

itself

and

continue

to

feel

the

results

of

the

of

wage increases in history in the form
price of things we buy, as well as increased
operations. The impact has, of

own

felt

in

course,

the

profit margin.

We

it will be
necessary to go through a period
ment which will involve
absorption of




reflect,

S.

in

large
activity of

economic

believe
of

that

readjust¬

higher costs while

growing at

and

for

felt

be

the

first

rate not anticipated
hence will surpass

a

decades

two

according ;to -recent estimates.
expected to produce the food and

are

line.

t.e

wide

same

materials

raw

examples of this

are

acceptance
1

enjoyed

as

SIDNEY

by

our

•

-

Nineteen fifty-seven will be a better year!

MAESTRE

•/;/'.%:

' / .Y

YY^%

Chairman of the Board,-

In

the

first

-

.

the

level.

The

come

to

up

recent

forecasts

high

indicate

activity will

definite

The

trends

continuance of

the

both

1957

this

will

ever,

in eastern

1956 and water will

Oil

revenues

for

1956

with

compared

are

November, the Northern Pacific
production of 161
with 99 wells

at

another

a

be

felt

for

sev¬

half million

acres

40% of the Basin

1955.

was

At

the

end

of

Basin compared

calls

for

$30,000,000—about the
000,000 will
units

as

part

plates full
car

be

spent

an

same

to

new

equipment and

expenditure
as

last

of

year.

purchase 80

more

than

Nearly $14,-

diesel

of the company's program
dieselization by 1959. The

locomotive
which contem¬

railway's freight
building program, delayed by shortages of materials,

got under way late in the year with start of
construction

Maestro
?

not

being maintained
appropriations" figures showed
are

quarter.
are

The

and
a

the

decine

of

announcements

postpone¬
plans by industries which appear
further evidence that for one reason

spending plans

being carefully

are

"

;

•

been

an

important factor

While the inventory-sales ratio has not
high level, its continued growth probably

a

at

accumulation.
.

least

decline

a

Private

in

the

of

rate

construction

new

is

inventory

expected to

expand slightly in spite of the fact that residential con¬
struction expenditures will be lower.
The decline in
residential construction can only
partly be attributed to
the
"tight" money market; there is some evidence,
demand

The

in

certain

run

ahead of

areas.

still remains

consumer

an enigma.
After spending
heavily in 1955, he apparently followed a more cautious
policy in 1956. As a result, retail sales rose
only slightly;
on

improvements

Sidney

turn¬

shortly.

although not conclusive, that building has
-

participating in the

wells in the Williston
the end of 1955.

Northern Pacific's 1957 budget for

orders

business

foreshadows

expected to be about $3 212

$1,686,000 for

a

reached

construction

yet reached

not

serves

third

for

in the last year.

Robert S. Macfarlan*

Washington, full impact

be available for

tool

of

and

expenditures

Inventory accumulation has

eral years when 1,000,000 acres will
be under
irrigation
Nearly 200,000 irrigated acres were under cultivation
in

by 1961. The Northern Pacific

the

the

There are, how¬

be

may

occasionally
or

moving from the

area

these

indications that

"capital

the

on

huge irrigation project will

in

Surveys of

quarter

re-examined.

the size of next year's
grain crop.
Although increased traffic of agri¬
cultural products is

000

either

slow rate of growth

first

that

some

point

new

esti¬

have

business

high plateau.

result
a

will be maintained.

con¬

subsoil moisture is not relieved.
effect

the

show

ments

what

in

strength will be provided by
the projected high level of plant and

it

in

to

in

tinued

continue^the

impossible at this time

consumer

relatively sharp decline., Con¬

a

year

ing

of this

that
a

observable in

now

could

economy

or

of growth
slowed

rate

signs
spending is reaching

Company

levels.

that

in

savings advanced, and there

as

are

Machine

is

rapid

expenditures

consumer

the

area

activity has advanced

substantial increase

a

buying and later the spending by business for new plant
and equipment and inventory expansion carried indus¬
trial
activity to
its
current
high

MACFARLANE

measure,

past two years business

the result of

as

equipment expenditures.

Columbia Basin

continent

projects are carried
schedule, there is the danger of a temporary
overcapacity. However, the tight money or
credit situation
currently existing, combined with knowl¬
edge of the dangers of
overcapacity, has already been
responsible for the postponement of some
projects and
may well be responsible for postponement or
abandon¬

through

period

will

mate

pansion of pulp and paper and paperboard capacity on the North American
been

of

1956

during the coming

V

It

world.

projects for

dent

portion of the needs of

Pacific Railway expects the
general
level of business activity in its
territory during 1957 to
be comparable to that of 1956.
The railway's traffic volume

and

demand

will

tracklaying tractors, and other equipment MM is confi¬

regions,
especially if the deficiency in surface

will

bank

improved Cotton stripper

farm

acreage in the grain growing

the

for

engineering in the MM line. Further with its
.expansion into the industrial field, with power units,

The soil bank program will cut down

able to judge, 1957
products will exceed

demand

advanced

pace, residential building starts
expected to decline.
This will
affect the volume of lumber moved.

are

our

the

and

are

is real.

growing

a

mark,

farmers

1956

de¬

soil

is

ago,

,

struction

apparent than it

more

200-million

Northern

While

in¬

in

'

ting a more complete service to consumers by providing
regulation of loans in larger amounts.

not

shortage of paper
apparent than

indicates

supply industry with needed agricultural

Lumber and grain movements
may

more

profit

a

to

required by this mushrooming population.
/•;'
.% //•* J
Important new equipment^ is bringing 'the farmer
greater labor-saving opportunities than ever, before. Our
power-lined MM "445" tractor, the Uni-picker sheller,

gen¬

serves.

inclined

arc

and

Mercantile Trust Company, St. Louis, Mo.

The

pulp, paper and paperboard were
greater than actual consumption. To¬
day we feel that actual consumption

the

In states with¬

President^ Northern Pacific Railway

our

population

decades

Fewer

During 1956, Arizona, Massachusetts and Virginia mod¬
ernized their small loan laws
by increasing the maximum
size of loans subject to regulation. \ It is
hoped that addL
tional states whose ceiling on such loans in unrealistically low will follow the trend of recent years, permit¬

JR.

that orders for

Our

interest.

dis¬

This, coupled with
make

to

1957. However, much of tne impact
diminished
as
preliminary
reports suggest

give their citizens the benefits of the services of
consumer
finance companies regulated
in the public

a

ago

a

desire

the

of modern

in

two

the consumer public. It is to be
hoped that those states
without effective small loan laws will
provide legisla¬

being
in our

temporary lull, demand for pulp, paper
and paperboard in the markets reached
by our products
continues to grow.
year

only

serve

realize

Farmers

marginal farm land makes up a large, part of the land
going into the soil-bank program.

loan

can

the

of

year

be

may-

legitimate
fully served only in

be

their improved

share with their
standards of leisure enjoyed by their

same

tion to

President, West Virginia Pulp and Paper Company
spite of

charge./These laws

can

their

neighbors,

complete

opened

with adequate

consumers

of

effective small loan law.

an

ROBERT

In

were

has demonstrated that the

effective small

year.

A

rates

needs, of families

unions, which

ages.
Industrialists, bankers, chamber of commerce of¬
ficials, government and school officials, all are highly
optimistic about the state's economy during the coming

LUKE,

cities,

laws, loan sharks—levying un¬
conscionable charges—exist
alongside of banks and credit

area.

L.

the

Influence

A substantial number of the
new

various

efficient

cost-cutting farm equipment.

offices—47 in

new

open

test of time

loan

states

Arizona's economy during 1957 is expected by all busi¬
ness leaders and planners to overshadow national aver¬

DAVII)

families

personnel

provide for continuous supervision of such licensees.

The

.

transmission and

numerous

Our

ago

ac¬

owqi/surveys,made for planning} and production
indicate that
1957
will
be
a
banner
year.

in

in

of

more

farm mechanization than

on

farming

ally provide for the licensing of lenders after a strict
examination of fitness, character and financial
capability

Looking ahead, we are preparing to begin construction
early in the year of two new electric generating sta¬
tions

reduction

but

farm equipment.
MacFariane

C.

VV.

han¬

accounts

time. The continued

production

labor-saving possibilities

der

purposes

tribution

a

of

in

before.

ever

Finance Corporation.serves the public pri¬
under the provisions of small loan laws, origi¬

years

cording tp surveys made at year's end 1956.
Taking all of the above growth statistics into account,
Arizona Public Service Company is looking forward to
another year of growth in the sale of electric and natural
gas service.
'
'
1
.

in

and

number

production and fewer
that/have been

some

byZ fewer

reliance

outstanding.
improve¬

an

adjacent

or

credit

ending period of 45,000.
in

from

the

to

/

,

farming practices, including a greater

in¬

nally recommended by the Russell Sage Foundation 40

population will
increase over

10%

the

offices, other than those in

marily

year—an

Arizona's tourist business should rise

resulted

18%

attuned

farmers results from

improved

the

resulting
Inventories
production

trends

are

for

us

crops

Household

land

through intensive
fertilization, and better production techniques have kept
farm production up.
r " ^
r ...
^ •" /'
use

taxes

better

are

increases

non-farm

continue to

been

Better

with

to, suburban shopping centers. We will
additional offices, wherever favorable
opportunities appear, and to modernizez and relocate
offices wherever public service warrants such changes.

state
state's

economic picture.

production.

employee,

per

new

in,

reclamation

additional

increase in

an

cities not previously served.

upswing.

Government
will

has

During 1956, Household opened 94

public highways and for armed forces facilities will

be

farmers

growth
appreciation of

than

plants,

cut,Vand

been

Greater farm

'

turnover.

schools

ings and other facilities.

prov¬

operating

resulted in

high¬

and

in

after

more

production in fewer

farmers' requirements./

efficiency during
1956, reflecting
improved handling of applications from prospective cus¬
tomers, plus improved collection practices.
Both have

State, municipal and county

numerous

improvements,

way

ment

year.

for

'

,

in customer notes

crease

this

Private

year.

income

somewhat

MacDonald

E.

Economists
increase

v. -

10

us.

operations.

improved

schedules

569

of

\;;

Company

efficient

more

have

have

now

all

in

prompt, courteous service in promi¬
nently located and attractive offices.

H.

T.

and

states

stems from customer

ex¬

1957.

metal

this
the

36

and

We believe that Household's

other states in the

production

leads

and

the

in

We

;

.

is another new year for all of

Cur industry has concentrated

year.

loans

these

of

families

serving

inces of Canada,

in Arizona will
previous
levels.

be increased during

to

balance

about $325.

offices

832

segment of the state's economy.

probably
exceed
Copper output in

unpaid

•

tempering experiences of the past 12 months;
farm-equipment industry looks forward to a better

the

books,

our

*Y-

/

.

After the

million, an in¬
of about 18% during the year.

averaged

this

on

Y

•

President, Minneapolis-Moline

$535

about

\

MacFARLANE

Nineteen fifty-seven

made

were

We ended the year

$400.

1,630,000 accounts

crease

to attract light, diversified in¬

they

'

C.

W.

size of these

average

time

the

about

was

place nationally in the rate of
growth from the employ¬
ment standpoint. A continuing pro¬

Walter

The

at

industrial

and

'

2Yi million instalment loans, amounting

million

first

dustries

will purchase 200 covered hopper cars and 50 tank

pany

In 1956 Household had its best year in volume of loans
to customers and in net earnings-to stockholders.

During the past year, Arizona held

gram

.

cars.

Sun

the

com¬

..

,

made

County, other sections of the state will experience
some
manufacturing
development.

Pima

In addition,.the

box cars.

damage-free

insulated

MacDONALD

.

,

growth of industry in Arizona will typify
economic outlook
in this state.
Although

1957

E.

.

President, Household Finance Corporation

Accelerated
the

1957, the Northern Pacific will build an addi¬
200 ore cars, 200 stock cars and 50

During

tional 450 box cars,

LUCKING

T.

WALTER

1

attempt to find means of offsetting" those factors re¬
sponsible for cost increases.

Thursday, January 17, 1957

...

at the company's Brainerd, Minn, shops,

of 500 box cars

we

87

Continued from page

Chronicle

Commercial and Financial

physical

a

smaller

start of the
have

new

started

conflicting
models

of

consumers
sumers

volume

because

prices
year

basis,

the

was

even

generally higher.
At the
there are few signs that consumers

buying in substantial

reports

increase

were

about

the

a

volume.

acceptance

There

of

the

are

new-

automeibites but probably the decision of
will not be
apparent until early spring. Con¬

appear

cautious

they may not need.

As

about
a

buying things they feel
result, there has been some

*

Number 5604

185

Volume

.

.

The Commercial

,

and Financial Chronicle

in savings and these savings have helped
industrial expansion. It is probable that con¬
sumers will remain cautious well into 1957.
<
v^The increase in governmental expenditures could pro¬
increase

business^ machines and

finance

heavy contributor

mission

In

therefore, it

summary,

seems

more

order

con¬

WARREN

HON.

U. S.

G.

great

tronic
all

one

of the,

with

concerned

water

to

out

the

to

two

Air

trans¬

contracts

York

New

totaling

engineer and install

the

system

Stock

plan

for

will

unify

systems

system

the

its microwave
New

tween

and global

domestic pri¬

linking 200

Air Force,

U. S.

Western

Force.

bases.

Force

Cincinnati and Chicago

system now in operation be¬

radio beam

Washington and Pitts¬

York, Philadelphia,

enacted in the 84th Congress to stim¬

burgh.

Completion of the extensions next year will add

ulate both construction and operation

nearly

1,000 channels in the mid-west area

of vessels

for the coastal

well

as

as

to

foreign trade, and spurred by the
increasing
demands
of
expanding

for leasing

government.

industry and

world

trade,
in

lines

all

operators

the

will

trades

of

shipping

of

be

hard

tion orders

amounts

of

a

limited.. only

steel

of

thousands
hwn. W.O. iviugiiuson

by

and

be made available out

installations

are

planned.

and

additional

Since Western

printing telegraph machines to 23,000

other business offices, over

connections

button. More than

Desk-Fax,

already have

of

furnishes

Union

the

can

plates that

send

can

firms

27,000

deluge of construc¬

the total of which would

be

to

seem

with which
receive their telegrams in¬

stantly in picture form by pressing a

Likewise, the shipyards throughout
a

moved rapidly ahead with its program

Desk-Fax facsimile machines

providing

businessmen

put to meet the demands upon them,
and should prosper greatly.
the nation face

company

Western

with

wire
Union's high-speed national

50,000 firms have direct

production.
it will be possible to handle
peacetime demands upon the

precedented

network.

these un¬
industries

:

timism.

Closed-circuit

involved without

ruinously costly procedures that have
accompanied previous wartime shipping booms.
The long-range construction programs developed by
the Maritime Administration will make it possible to

facsimile

leased to firms in

were

to connect

systems,

many

"Intrafax,"

called

lines of industry in 1956

their scattered departments,

offices and build¬

replace,

by year, the rapidly aging wartime

year

constituting the
States registry. Thus
now

lescence

such

as

the

The

of

are

immediate

needs

will make it

possible to trans¬

of

tons

of

that

the tele¬

Associates, Inc., Technical
Inc., Teleprompter Corporation and Wind

Since

Western

are

May 17, 1955, the
'

ers

has

more

increased

than

Union's

stock

was

split

4-for-l

on

number of Western Union share ownabout 50%, from less than 20,000 to

degree of

a

ago,

years

The
and

least

at

first

the

this year.
demand for hot

months

three

of

rolled

sheets

light plates is particularly heavy
market

our

area.

Our cold rolled

bookings are also substantial.
However, this does not mean that
1957 profit margins are certain to
equal or exceed those of 1956 when
our company, for example, had rec¬
ord earnings of about $15 million, or
about $7 a share.
In addition to higher wages, the
steel

John

With all

form

or

a

been

31% during 1956. The prices of iron ore
substantially. There have also

freight rate increases.

This matter of

a

developing squeeze between increas¬

ing costs of materials and production on the one hand
and basic steel prices on the other is a matter of con¬
cern for the
entire industry.
The $8.50 a ton increase

prices put into effect last summer by the indus¬

try was not enough to even offset the
had accumulated at that time.
Our

that

company

will

000 tons.

is

increase

about 47%.

engaged
our

in

annual

an

steel

higher costs that

expansion program
in^ot capacity by

At the start of 1956, our capacity was 1,080,-

By the end of 1958, without adding to our seven

hearth furnaces but with increases in our blast
furnace ifon capacity and rounding out of our rolling
open

finishing facilities,

and

be about

our

annual ingot capacity will

1,584,000 tons.

worthy of note in today's economy is that
healthy market for flat-rolled steels. Most
the expansion which has taken place in steel finishing

One point
of

the

very

capacity in recent years has been in the flat-rolled steels.
Behind this is the constantly growing demand for con¬
sumer

goods

in

which

flat-rolled steels

—automobiles and trucks, refrigerators,
farm

try

machinery, etc. In addition, the construction indus¬
added

during the federal highway-building program.
In

ating rate will fluctuate from time to time, but it is hard
see the industry ever returning to the sharp up-and-

to

down

cycles that once were all too typical.

Continued

it alive and prosperous enough
replacements, and ways must be found

than

UThese are problems, and knotty ones, undoubtedly. But
today's healthy and prosperous maritime industry will
be able to meet those problems successfully, I am sure,
if government continues to appraise and support the
efforts of the industry as well as

"Building to the Future
of Electronics"

it did during the Con¬

just passed.
This, I am confident, will be done. Certainly we in
the Senate who-are charged with responsibility for help¬
ing to maintain an adequate Merchant Marine, will do
•all we can to insure that the advances that have been
gress

made will not be

negated.

WALTER

P. MARSHALL

President, The Western Union Telegraph
Western

1956

Union's

revenues

the

passed

Co.
quarter

time in history, an
1955.
Nineteen fifty-six was a year of record progress in
other directions as well, with con¬
tinued expansion in the facsimile,
private wire, data processing and

billion

the

first

about $10,000,000

over

dollar

increase

of

mark

for

microwave fields. As
Western

vate
an

the year ended,

Union's facsimile

wire

business

was

than

running at

nearly $35,000,000,
five times the 1948 total

$6,169,085.
Now over 2,000,000
miles of telegraph channels are used
of

private wire systems leased by
telegraph company to govern¬
ment and industry.

in

the

.

$32,000,000 was spent m
expand the company's facili¬

About
1956 to

ties
Walter P. Marshall

and

1957

expenditures

projected at the rate
The use of
leased

telegraph systems to transmit data for




twenty-fifth anniversary of the

Build to the Future of Electronics.

and pri¬

annual rate of

more

1957 marks the

Amphenol Electronics Corporation. During these
years we have been an active participant in the
growth of America's wonder industry, Electronics.
Today, more than ever before, the electronics in¬
dustry is turning to amphenol for the precisionengineered connectors and cable that it needs. In
each advancement, in each new program, amphenol
is a full-fledged partner.
The future will find this partnership still enduring'.
Then, as now, as in the past, amphenol will continue
to

are

of $40,000,000.
private wire

processing by

AMPHENOL ELECTRONICS CORPORATION
KCT

I gllUUWUi

:

1957, the steel industry will be serving wider and
stable markets than it ever did in the past. Its oper¬

another to keep

far higher percentage of ore carriers
presently is operating under the American flag,

We

heavy-gauge culvert sheet to Granite
City Steel's list of galvanized, corrugated products be¬
cause of the expected heavy demand for culvert sheets
recently

29,000.

v

essential

is turning more and more to flat-rolled steels.

said, however, we cannot

'to, provide ,a

are

air conditioners,

long-range nature which may have to

to provide needed

Marshall

and of coal also increased

overlook cer¬
be
met, by legislative action.
Our coastal and intercoastal
fleets, including those of the Great Lakes, need strength¬
ening;, our tramp shipping must be given aid in one
this

N.

is having to absorb
higher costs of its major raw materials and of rnany
miscellaneous items of purchase. The price of steel scrap
industry

maritime structure.
tain needs of

op¬

We

capacity operations at
began almost two
on
Feb. 15, 1955—will

continue for

in

and

Our customers have made substantial bookings

that

more

Tunnel Instrument Company, Inc.

the millions

projected for delivery abroad
within the coming months and years.
Thus both gov¬
ernment and the national economy will benefit, without
imposing undue strain upon any one element of the
coal

special areas of interest within

industry:: Microwave

Operations

Fleet to meet clearly demon¬

port .the millions of bushels of grains and

companies whose

allied to

graph

Availability to the shipping lines of vessels from the
strated

■■■;'.

interest
present and future operations

telegraph company also has acquired an

in four

World Wars I and II occasioned.

National Defense Reserve

communica¬

and efficient intra-company

tions.

vessels

shipping under United
we can avoid future bulk obso¬
emergency building programs of
bulk

for fast

for the Midwest

which the Granite City Steel

mill—which

our

•

ings

outlook

on

through the first quarter of 1957.

of

.

area

Company depends, it is hard to avoid

record total of steel

Fortunately,

the' 1957

Southwest market

in basic

the

The

discussing

went up about

Western Union is extending to

portation to new heights of progress
and prosperity.
Partly due to beneficial legislation

Air

Carry¬

world.

domestic

the 200,000-mile

of the

between

communications

the

of

than $10,-

more

fully automatic elec¬

a

bases throughout the

already provides

wire

vate

cargo

ments

Coast

buyer in less than 60 seconds.
the Air Materiel Command awarded

year

Union

telegraph

Union

shipping and in shipbuilding the demands for
space should lift all ele¬

Both in

West

communications

States

maritime industry.

more

the

private

nationwide

MARSHALL

Company
In

expect

significant

S. Air Force

U.

ing

the history of the United

in

Sylvania

for

1956

sale to the

or

000,000

Senator from Washington

years

in

data.

highly

from

Western

MAGNUSON

Nineteen hundred and fifty-seven should be

truly

of control

During the

important

significantly lower level.

ity to a

operation

Exchange floor in eight seconds, and confirm the pur¬

1957, but they probably will not carry business activ¬

in

N.

39

Chairman of the Board, Granite City Steel

private wire sytem designed
of control date

wire
system installed by Western Union in 1956 was for E.
F, Hutton & Company, stockbrokers.
It can flash an

in that

likely that the

in

Another

chase

tractionary forces are likely to become

JOHN

fast becoming a
private wire busi¬

Electric
Products, Inc. Many other firms, such as General Electrie, U. S. Steel, Liberty Mutual Insurance Company
and United Air
Lines, also are making extensive use
of their Western Union private wire systems for trans¬

will struggle for leadership.

States

placed

was

makes it an area in which Russia and the United

area

is

exclusively for automatic- -transmission

stimulus to the economy, but it is doubtful
if the budget ? will become unbalanced sufficiently to
result in any inflationary stimulus. The Federal, state
and local governments are embarking upon large-scale
programs of public works. While these programs mean
increased expenditures over a long period, they are not
likely to result in sharp increases this year; The inter¬
national situation remains critical.
Solutions of the
political problems in the Middl^ East will be extremely
vacuum

computers

to Western Union's

The first nationwide

ness.

vide some

difficult, and the existence of a political

(285)

Chicago 50, Illinois

on

page

90

90

Continued from page

S.

U.

W.

Massachusetts

from

Congressman

Eisenhower's

President

tinued

will act favorably

legislative

for con¬

program

home and peace throughout the
The support for it in Congress should be greater

prosperity

world.

at

than that accorded to any President's

in recent years. In addition
to the backing it will receive from
Republicans in the Congress, it will
program

have considerable Democrat support.

Bi-partisan
President

to

mination

cooperation with the
help him in his deter¬

to

will

honor

the

duty of the

peace

most

demonstrated their faith
confidence
in
Dwight Eisen¬

and

Election Day.

on

Congress

to

continue

American

reached

progress

Employment

averaged

million increase

gooct

million

65

1955.

over

for

the

year,

Wages and salaries

two

a

the

predictions

of

the

economists

that

these favorable trends will continue in 1957 to make ^an¬
other year of record

Eisenhower

year..

-

L.

that

dition.

deep

succeeded

in

bringing

iClany elements

the

is

loCal.

the

and

been

balanced.

Industry and business have been given

War

ess

contributes to continued good times.
is leading the way in

Administration
American

new

of

era

prosperity with the Federal highway construc¬
Parks,

tion program, the modernization of our National
aid and encouragement to slum clearance.

The

problem of inadequate and
buildings is a national problem and
We will make

a

overcrowded

school

a most pressing one.
strong and determined effort to enact a

law to provide for Federal aid to school construction.
believe that prospects for its passage are much

1

brighter

this year.
I

System
curb

the

Much

as

I

,

there is

see a

another substantial tax

see

clear path for one in 1957. How¬

modification

some

of

the

tax

laws

united

are

in

our

JOSEPH

A.

peace

determination

gether for a better tomorrow for the
for the entire world.

the

South. Bend
about

prospects for

the

record-setting
year

is

-

<

to

United

GEO. G.

States

To do this

general
first

as

accepted

an

marks

new

are

of $412

billion,

and

set

a

few

to

words,

record total

spending is
rate of $266

consumer

1955

level.

duced

and

world's

people

year

The

United

consumed

States

60%

of

There

were

some

toward the end of the year

leveling

off

plateau which
Joseph A. Martino

the

Sixty-five million
employed today—another

are

record.

a

pro¬

all

goods.

nation's

of

now

the

signs

indicating

very

high

characterizes

our

economy.

National Lead Company had higher
any previous year, and 1957
should continue with a
good business pattern. The de¬
mand for titanium
pigments continues strong and the

earnings than in

company announced expansions
and completion of an

in its St. Louis plant
expansion at its titanium mine in
Canada's first titanium
pigment plant,
National Lead

Tahawus, N, Y.

built by a
subsidiary, will go into opera¬
tion in the middle of the
year.
Plant expansions at the
Doehler-Jarvis Division plants, producers of
non-ferrous
die castings for
receivers and

well

has

automobiles, office equipment, television
applications, will be completed this

other

drilling should increase and
taken major
steps to supply




our

Baroid

additional

a

of

way

on

some

G.

in

never

level

a

comr

as

most

-

was

all

There

were,

of

agriculture, which has

course,
not

some

shared

at

phases

like most of the other
segments of
a

prosperous

Now,

year

I because

our

such

this prosperity

economy.

money

was

for predicting 1957, we
certainly must
consideration to the Egyptian-Suez Canal
as

give

problems, and

to all

European problems for that matter, as world con¬
the
economy for the coming year will be
entirely different, should we become involved in a
fight?
ing war or be forced into a series of
recurring crises
which definitely
upset the stability of our
production
and
purchasing powers. My thinking is based on the
ditions 'and

belief that these matters will

not

be

settled,

coming

Company look

business year with .the

1956

carrying through the

year.
•

«

1956)

amount

of

the

total

for

spending

new

producers'

•

durable

or

with

demand.

The

build-up, which
throughout the past

re¬

lead

time

presages

capital

high

has

a

year

items,

level

J. L. Mauthe

for

the

heavy

utilization

at least wiLl

cause

to

and

more

costly.

In

light of this,

it

seems

longer-term

for
.

increasing capital expenditures.

^Rising

*•

outlook
;

/

consumer incomes in 1957 may be expected to
consumption, expenditures, for. services,

i ion

-durable, goods

degree,- to

and

highs

new

durable

in

goods, to some lesser
coming year.
Consumer

the

spending which has been a strong economic
plank for
the past year gives'Iittle
evidence of weakening in 1957.
I J eel we can look for
greater Government expenditures
in 1957, more for
highways is assured and the unrest
in international circles
may be expected to dictate in¬
creasing defense
The

steel,

and

foreign aid expenditures.

industry

will produce approximately 115
ingot tons in 1956, and indications at this time

million

lead

to

us

estimate

foresee greater steel

1957

ingot

ton

range, and,
expects to add

as

production

production
in

the

1957.

of

in

1957.

116-120

We

million

you

probably know, the steel industry
approximately 3-4 million additional tons
ingots to its 1956 capacity of 128 million
tons, which
the

prediction'

get to the subject.
I expect the
present high economic conditions to con¬
tinue into the new
year for the first six
months, but not
to increase as much as in the
last year, and I
fully expect
some
dropping off in business during the last six months.
I believe that installment loans
will continue
upward,
with a
probability of larger automobile sales in tne new
year.

to

lift- personal

sell

now

unlikely

me

means

along,

any

nation's

constantly increasing interest rates which, of course,
have been making
borrowing for capital expansion more

doing lots of talking but without making
I'll

our

money, man-power and materials during 1956, may reach
its peak some time
during the first half of 1957. This
probably will provide pause for some reassessment of
rising industrial capacity and production costs in relation

a
shooting war, though the "cold war" as we
term it, is still in process and I think
will continue to be
that way for a number of
years to come. I ramble

so

was

measure

of

that the present tremendous demand
for funds Will
continue undiminished
throughout 1957.
Nevertheless
I should like to
*
say that the possibility of some hesitation
in the unprecedented
existing rate of capital expansion,
a
high < .during the last half of 1957, does not dampen our gen¬
eral confidence for 1957 nor
of
the
the

Banking"
extremely
tight and interest rates
higher—resulting in profits beinggood.
had

;

Tube Co.J

prices accounting for

and

pace

responsible

income

exceptions,
in

•

However, the current capital ex¬
penditures
boom,
which
in
a
great

and I believe it broke all records in business

economy,

history.

I

in

-J

and

of
producers' equipment output through
the first half of 1957.

individuals in the coming
that is, 1956 — unfortunately,

this assumption.
Business in 1956

Matkin

of

order

long
probably

business in

cut

keep

fon

make

.developed.
As for this
do not expect any decline in
taxes, and I believe I will be right in
George

the

Business

expanded

in my particu¬

field—BANKING—I feel

be

another good

(about 5%"* above

appreciable

sulting

Furthermore, to

discussion

a

increased

construction

for

year,

annually in

and wages of fac¬
tory workers averaged 5% over the
a

year,
this

another

wages.

a

1956.

as

of

billion

gain.

general, which is quite difficult. As
1
recall, I stated last year, about this
time, that I felt reasonably sure that

standard

running at an annual
billion, personal income has reached
$326 billion

my

requires

un¬

equipment will show a substantial
gain in 1956, in fact producers of
capital equipment have been unable

properly, I think I should first

discuss

J- L. MAUTIIE

that the Gross National
in-1957
will
approximate

with
an

for 1957 would be in

quarter

$430

comments on business in
1956,
because any statement I would make

to¬

floor

- •

.

boom momentum

product

every reason to be
future because of the

with

'

.

We expect

MATKIN

parison

a

'

.

I appreciate your asking me to write
giving my opinion of the outlook for 1957

taxes

following

year

almost

production climbed to

Division

come.

.

come

work

By every yardstick, 1956 was the
best year in history. Gross national

Oil

...

0

lar field.

V

forward to 1957
'

have

we

there would

production, sales, profits, employment and

year.

area

foreseeable

effect, put

;

"We* at The Youngsto'Wrf Sheet and Tube

Matthews

/

President, The State National Bank, El Paso, Texas

MARTINO

business

becoming

part of American life

sales and

,'T~

L.

L.

:

industrial expansion.

more

President, National Lead Company
One

V

more thrift minded, as indicated by the slight in¬
,in savings in our banks, and it is not unlikely
that
spending for personal and household needs will be

optimistic

'

"V Chairman, The Youngstown Sheet

govern-

months to

Maull

population,

T

however,

crease

slightly reduced in the

Baldwin

of

rate

.

exceeds the supply. 'In recent months
indication that the American Citizen is be-^

country and efforts to

our

security and

record

trends;

accelerated...

great

«■

"

.

to

some

security and safety of

We

intended

money,

cooperate with other nations in the drive for world
peace
are
expensive programs.
I sincerely believe
that all
American citizens agree that
first.

and

of

this year,

The

/

coming

,

would, like to

realistic

an

be

the

,

law

meat for

helped keep the United States strong
'

there may be

ex-

is

To these various factors must be added the
dynamic
basic growth of the. country reflecting such elements as
the* rapid rate of family formation, increased

supply and demand'
exists, and the total demand of

In

reduction, I do not
ever,

these

could

there

and the. like.

inflationary

defense and for continued progress for world
peace., Fis¬
cal sanity by the Federal Government under
Republican
management has
and prosperous.

necessitated

individuals, corporations and

!

strongly in favor of another balanced budget, in
spite of probable additional expenditures for a strong
am

is

old

still

Cooperation in this progress will be continued by the
85th Congress.

has

The policy of the Federal Reserve

The Eisenhower

the

II

which

der the economy.

penditures.

more men and women, to expand,
America is modernizing and this proc¬

modify their
credit policy. In addition,
great backlog of public

the last two decades that, in

over
.

creating the tight
money
situation.
Naturally, the
increase in population since World

the confidence to hire

authorities

capital expenditures by American
industry. In addition, we have the high and perhaps ris¬
ing level , of armament expenditures and
the
many
changes in our social, economic and financial structures

highways, have been the

to produce more.

and

economy

technical development which in turn
calls for tremendous

...

major .factors

and

the

Reserve

the

then

and

budget,
municipal sponsored schools, hos¬

pitals

unprecedented prosperity to the United States. Never
so many Americans shared so much.
Run-away inflation has been halted. The budget has

full employ¬
land, the govern¬

unquestionably
is

works

con¬

be*

with

to stimulate

Federal

there

enlarged national
together with state

before have

business

be expected to mobilize its

money and

Our

this

because

can

would

of government, be it Federal,
or

in

It is possible to

ment the law of the

forces

however, in
expansion pro¬

long-lived.

this

say

|

have created this

downtrend

any

or

ment

Most prominent,

opinion,

gram

state

if

,

important is the fact

more

should develop, it is not likely to

Fifty-six will be recorded as the year of tight
Considering various factors at the present time,
seems
likely that this situatiqn will exist until the

it

high, and probably higher

Perhaps

Nineteen

mid-year of 1957.

Corporation

the

average as

con¬

MATTHEWS

MAULL

than that of 1956.

*

L.

been

trend, there is every indication that Hhe average
level of business activity in 1957 will

sales in nearly
With peace in the

-"

serious,

have

we

1^57
While there is this uncertainty as

anything, but clear.

to

for both production and

defense

prosperity.
has

program

is

1957. should be moderately

year

as

;
Because of the many cross-currents at work, the
trend
of business activity beyond the first few months of

money.

my

contribute to future capacity to produce.

The

1956

be helpful

BALDWIN

President, American Trust Company, South Bend, Ind.

were up

income, the net remaining after
payment of personal taxes, rose 6% in dollar value. Pro¬
duction is booming.
A huge increase in investment in
new
plants and equipment by American industry will
with

-The

prosper.

probably could

it

President, Marine Midland

••
Lead-

will

economy

our

high,

possibly not increasing as in the past year, but
continuing to be on the tight side. I do not

S

Hon. J.W. Martin, Jr.

pelrsonal

Disposable

agree

to

r

>

National

that

slower.
be

lines could

industry in the United States.
world, "I believe the nation can look forward to another

all-time high in 1956.

an

VT

••

every

and

progress

Jy

developments demonstrate

to

quite fast and a continuance along our present
project us into a period of dangerous inflation.

going

1957, with Titanium Metals Corporation
of America, owned jointly with
Allegheny Ludlum Steel
Corporation, announcing sizable expansion plans for the
coming year. Titanium Alloy Manufacturing Division is
expanding its facilities for the production of titanium"
and zirconium alloys for steel, chemicals for wall tile,
ceramic ware,
porcelains and enamelled goods, glass
polishing and refractories. Formation of Industrial Re-;

'

Economic

production of this strategic material

should double in

that interest rates will continue

appears

and loans

Lynne, Pa., at the country's only nickel
operation.
Titanium metal set shattering

1956 and

better than

four years.

I

though

tinue

prosperity—on the sound foundations
which have been built in the past

7%.

expect the slowdown the second six months to be

in

records

Company has. confidence' that

They expect
with him to

cooperate

Crum

--These

The people
hower

be

in

at

refinery

velopment work.

Congress.

new

will

with money

It

actor-Laboratories? Inc., was announced, .with National
Lead joining;nine'other large gorporationsjn building a
nuclear reactorjat Princeton, N. J., for research and de-'

with
compelling

preserve

be

construction

nickel

MARTIN, JR.

-I believe that the new 85th Congress

home

that

believe

also

I

Thursday, January 17, 1957

...

chemicals and services to that industry.
An extreme
shortage of freight cars should stimulate sales of journal
bearings by National Lead's Magnus Metal Division.
In 1956 National Lead went into production of metallic

89

JOSEPH

HON.

on

Financial Chronicle

The Commercial and

(286)

in

A

1957

industry

forecast

of

will

have

116-120

more

steel

products

to

million

ingot tons antici¬
a
continuing high level of activity in most steel
consuming industries with improved
activity over 1956
most likely in the
huge and extremely important con¬
pates

struction
In

and

automotive industries.

summary

Youngstown
optimism.

I

look

would

like

forward

to

to
■-

say

1957

again
with

that

we

at

considerable

Number 5604

105

Volume

The Commercial and^inancial

. . .

(287)

Chronicle

91

1

MORTON D.

MAY

of the Board, The May Department Stores Co.
Retail sales volume continued to increase in 1956 o^r
previous years as consumer income increased and^$e
look forward to continuing moderate gains in the year
ahead. From the third quarter of 1955 to the thiftl
quarter of 1956, the annual rate of

tion

spectacular.

same

omy

the

These

many

coupled

programs,

the

May*

customers'

growing share of the

a

tremendous

promo¬

dollars

in

john

there

fluctuations,

some

were

prices

as

the next

us

of

volume

credit

of

continued

sales

to

now,

farm

expand/in

that

of

most

^

for 1957 include the completion in the fall
of two major expansion projects. One of these is the
Eastland Shopping Center, now under constructian^at
West Covina, Calif., which will include a 365,000-squarefoot branch of the Los Angeles May Co. and approxi¬
mately 42 other stores and shops. The other is a brafrch
of the Cleveland May Co. that is being built in the
Our plans

*

Our

Wm.

branch

section. This store will have four
of 349,000 square feet.
.
•

Heights

and total

space

store

store in

Co.

Son &

Taylor

construction

under

in

Clevelandfhas
the

Southgate

Shopping Center, situated 15 miles south of the down¬
town district, which is scheduled to open early in
19p8.

I' In "addition,
sixth

Los

Center

at

planning construction

are

we

branch

Angeles

Redondo; Beach,

of /the

in the South Bay Shopping
Calif.; a second branch of

Cleveland

May Co.,-in the Parma town Shopping
Center at Parma, Ohio; and a shopping center that will
include a second branch of the May Co. in Denver.'

history,

"
r

!

The

President, Union Electric Company

coming
a

$33 bil¬
basic industry under¬

holds great promise for the

year

lion electric utility. business

lying

'• -X;J;

J. W. McAFEE

-

as a

from

the

and

editorializing

economic

farmer,

plight

Mis¬

dustry.

-

;

new

pay

particularly

farm

for themselves in use,

Fifth, with the
John

equipment products
is always a stimulant

financial condition.
His balance sheet
The Department of Agriculture estimates
that in
1956 farm assets totaled $170.1 billion while
farm debts were only $18.8 billion, a ratio of 9 to 1»
Today, farm indebtedness is only about 11% of his as¬
sets.
In 1930 it was 21%. So most farmers have either
the cash or credit with which to buy farm equipment.

erally

Mr. Mc¬
industry, missed

the primary reasons why
our

,

1957

good

that.

Sixth,

during the past year,

particularly in the last

of the year, inventories of finished machines
in the hands of both manufacturers and dealers were
reduced substantially. Such a reduction has opened sales
quarter

channels considerably.

and service organiza¬
dealers today are the best in

Seventh, the facilities and sales

and the
into this period.

the effects of the drought

post-election adjustment carry over
The outlook for our business abroad is
The tensions created by the situation in the

exception of those farmers who have

experienced the ravages of drought and other misfor¬
tunes in recent years, the American farmer is in gen¬

McCaffrey

L.

affecting our in¬

third factor adversely

our

among

a

to sales.

.

enter

and

A

fiscal year, however, there
are already signs of better days ahead for our industry
in the domestic field.
In fact, these signs seem strongenough for me to predict that at International Har¬
vester we can expect about a 15% increase in our do¬
mestic farm equipment business in 1957 over that ex¬
perienced in 1956. We anticipate a relatively slow first
we

products,

which

speechmaking
about the terrible
of the American

These, then, were

As

introduce,

tractors

of

Caffrey, as well as others within
the forecasting target in 1956.

manufacturers will, I am

other things, a new line of
tractor hitch featuring a weight
transfer application, early in 1957.
The availability of
will

we

farm

proves

a

was

This was particularly true

industry.

1956.

introduce new and better products during 1957,
all designed to bring more labor saving, more economy,
and more profit to the farmer because of their increased
efficiency and work capacity. At Harvester, for example,

generally low level of farm com¬
modity prices which prevailed
.throughout most of 1956 was an¬
other.
The national election, pre-'

months

Historically, national
adverse effect on the

some

Fourth, all farm equipment

sissippi River and the Rocky Moun¬
tains, was an important factor. The

ceded (by

always had

sure,

covered

between the

area

general attitude

taken place since the com¬

election.

the national

have

equipment

farm

in our coun¬

which

one

quarter, however, as
•

25%

elections

five

for

thousands of
whom have not
and even seven

many

marked improvement in the

a

of

pletion

1956

the

years.

of the American farmer has

in

droughts

severe

of

to

to

moisture

adequate

Third,

As it looks to

brought some encouragement

faith

of

of this stricken area, many of

consecutive

major factors contributed
this decline.
One of the

to

try's

20

about

restoration

a

received

1955.

Three
most

most

University

and

As it turned out, 1956

in

industry

moisture has fallen on the parched
of the drought area in recent weeks.

Most certainly, it has

end.

the over-all business of the

equipment

most

farmers

good year for our industry.

be! off

important under present-day conditions that great,.care
be exercised in extending credit.

floors

a

will

the
The

not

some

Although far from sufficient, the moisture recently re¬
ceived there may well be the beginning of the drought's

predicted that 1956 would be
for the farm equipment industry, as good

year

in

lands

International

possibly better than 1955.

or

was

sell were relatively stable over the" ]

we

good

:

Second,

this time last year I

At
a

a

country, should

our

"

Harvester Company

of foreign as well as domestic markets.

of

industry.

McCaffrey

l.

Chairman of the Board,

trend, long-awaited by
be most heartening
and, also, to all people in the farm equipment
Obviously, such

year.

farmers

them

to

12 months.

1956, but increases in disposable income kept pace with
increases in consumer debt. However, we believe it is

I

with

tional efforts by manufacturers of home appliances and
other utilization equipment, should get for the industry
D.

the basis for the further strengthening of
commodity prices and farm income during the

coming

bring the expected results in 1957.

general level of prosperity

form

should begin to

and we do not expect any sharp general increases
coming year.
•
/
.
/••'

year,

the

In addi¬

exception to this trend.

no

and

the

a

population of our. coun¬

being experienced by most segments of our econ¬

now

farm

operate buying

While

a

which
during

increase -indicates

this

slight,

Factors such as the rising

1957.

local utility campaigns, at least three
important national cooperative programs are underway

offices in London, Paris, Florence,
Frankfurt and Tokyo and all of them report
that foreign production of consumer goods is increasing
in both quantity and variety.

1

trend

economists and others feel will continue upward

to

Zurich,

merchandise

farm

utility business is

Supplies ^f
merchandise are generally in balance with demand and
our buyers have broad selections from which to choose.
is true

latter months of 1956, the general
commodity prices became, stronger^ Al¬

during, the

of

though

operating costs, man¬

tion

retailers, we find that our
wholesale markets are in good condition.

•

level

to

This

optimism are these:

First,

-

try and of the world and the

}

cern

in

Turning back to the domestic scene, the reasons for
my

agement generally appears more promotion minded than
ever before and the
marketing tempo is quickening. The

,

We

to

of farm equipment

tions

less certain.
Middle East,.

Continued

on

surging national economy.

Nearly

every new

device for improved productivity in
the store or even oh the
farm calls for a new power utiliza¬
tion.
All the work saving, comfort
or convenience devices
in the mod¬
the factory,

home

ern

from

the

mean

more

nation's

.

•

\

behind the

s

kilowatt hours

power

plants,^the

capacity of which already has Been
increased
about
2l->
times
since

"Golden" Dividend
'

1

World

percentage increases in

Necessary

-

to

f

■

General

of

annually
facilities^ in'
W. McAfee
1957
our ' construction
budget'1 is
$63,000,000. Home use, increasing at
ab°ut 10% a
year, is taking more and more of utility con¬
struction budgets to increase distribution facilities. Par¬
ticularly is this true in the temperature zones, where,
as in our
own case, summer air conditioning is becorriing
9s great a
necessity, in the customers' view, as whiter
$25,000,000

x\

'

Record

/capacity applied to the 1956 base, of
course, requires a larger dollar-vol¬
ume
of
financing.
For
instance.
where
our
company
used to need

/

■

II.

War

Mills?

$35,000,000

construction of new

"for
.

'

•

house heating.
The

-•

--

•

growing
me

gross revenues

resulting

eircumstances

assume

of

•

generate from

tion

this record.

on

has

1928.

since

the Big Board of the New

With General Mills they

earned and

paid regular

reduc¬
companies

its common stock without

Only eight other

York Stock Exchange have

form the "Golden Nine".

seriouslv curtailed hydro electric
additional fuel required

The cost of

our

steam

equipment the power

nee'ded

make up the
deficiency,
by six or seven cents

alone reduced our net income
per share below what it would
nave been
with average rainfall. We know we can expect
these
things, but certainly there will be a turn awav

of

one of these years. In view
tighter money, our budget committee is
every item of our prospective capital

'J50?1 *be drouth cycle
higher
costs and

For the

dramatic story of General

Mills

—

its philosophy and

Weighing carefully

operating costs for 1957.




practice — read

temporalily adverse

greater importance; for example,
drouth which has affected our

to

and

dividends

BUSINESS WITHOUT

BOUNDARY

the

for several
years

Production in 1956.
to

makes even

pressure

<tne continuation
area

Mills

General

real

challenge to utility management in 1957. The
inexorable increase in costs that has gone on for so mhny
years,seems certain to follow the same course this year,
-the

f

with stock listed on

of;

a fair proportion
the
into net income for investors is

industry's -ability to turn

business

depending upon future events.

abroad

A sub¬

;

careful attention

and

simply must watch and wait and adjust our

We

the

with

improved,

St. Louis city charter.

"

Aside from

factors that brought a
H
the annual rate of produe- ^1/^
tion of goods and services in 1956
£L
and, with it, an increase in. -retail
sale's volume are likely to continue ?
at approximately the same strength %
in 1957. This does, not take into ac¬
count, of course, changes in inter- :*.■
national relations that might affect
economic conditions/.
1 V
Morton
Regarding matters of specific con¬

climate, is

new

a

increase.

gain in

•

civic

Eastern

satellite countries of

in the

the effect they will likely have upon the
economies
of Western European countries, naturally
surround our 1957 foreign business with uncertainty.

on the building program of
nearly $175,000,000 authorized in 1955 city .bond issues,
including progress on trafficways, new schools, and
health centers. While home building has slowed from its
fast postwar
pace, home modernization activity is on the

national product increased by...
Approximately $17 billion, .with more I
than half the increase accounted for
f
13y a rise in purchases of consumer
goods and services. ■■■"■ - ■!
,/ >
i

.

Our

uprisings

Europe

are

stantial start has been made

gross

The

-

prospect in 1957-of

the

bv

has been in 30

locating in the region we serve
established industries ate expanding. The, popula¬
growth, particularly in St. Louis County, has been

and

"

the brightest it

seems

New industries

years.

Chairman

•

Our area's future

-

^

PICK

UP
OR

A COPY

SEND

FROM

YOUR LOCAL

YOUR ORDER.

UNIVERSITY

OF

BOOKSELLER.

WITH 54.75. TO

MINNESOTA

MINNEAPOLIS 14.

MINNESOTA

PRESS

page

92

-92

Continued

from

page

The

91

57%

will be

history of our industry. Such strength
in increased sales during 1957.

the

Financial Chronicle

The Commercial and

(288)

re¬

than

more

million

$800

spent in 1956

new

ucts

These, then, are the reasons why I believe 1957 will
be a good year.
True, the year will not be without its

long-range future of our industry. All of us are aware
of the changes that
have occurred within American
agriculture in

recent years.

The number of farms has

decreased

their

increased.

but

has

size

There

been

has

million

32.6

take

tons

in

1956,

of demand in

care

now

are

wood pulp and kraft papers.

as

further

expansion

in

these

second

A

the

of

areas

will

year

industry will probably be delayed. Nevertheless, overall
the industry will probably show a 5% increase in total
paper production capacity in 1957,

city, leaving
on the farms

continue

"f

in
not

am

the

future.

at

;

might

changes

all

the

to

these

what

of

sociological

industry.

equipment

farm

more

efficiently operating machines.
And more and
emphasis will be placed on expanding the uses

more

that

1955

1956

and

,

because

of

Aside from

higher labor, fuel, and

by the trouble in

Europe

to

of available

employment,
wages, and production levels—in addition to a steady
growth in disposable income — all indicate that the
coming year will go ahead of 1956 in production and sales

versatile

a^.y

from

the

reciuction

War

total

the

in

of

number

The

II, modern farm equipment has adequately replaced
nation's farms manpower which migrated
in

a

increasing numbers to the city.

Should this migra¬

tion continue, and we are told that it will, our industry
will continue to provide the machines to do the job.

Economists

other

and

experts

that,

forecast

the

on

basis of what has taken place in the past, the population
of America will reach the 210 million mark in 1975,
than

more

million

50

that of

over

today's standard of living,
the

in

crease

Recently

for

demand

On the basis

today.

they anticipate

farm

products

50%

a

in

1975.

in¬
The

nounced

first

In

-this

growing number of American people will rest with
farm labor force of about 5 million, down \xk million
the

present farm labor force.

with

and

for

the

keen

a

future

equipment

the

are,

industry,

challenges

that lie

what

of

awareness

and

men

working

ahead.

its

responsibilities
of

women

together,

will

Knowing this,

I

farm

the

meet the
have great

is

B.

will follow.

creases

had

was

done

to

rate

current

consumption—435

pounds

of

the

though

step,

is

was

we

taking

of this

Seizure of

agents

in¬

for

„

sorely

needed
even

an

another

Government

June

fiscal

Thomas F.

ending

year

-about

in

unlimited

the fastest

appetite for tne

life,

have

is

estimated

a

that

criminal

the

horizons

for

of

one

of

the

completely

a

now

year.

unrealistic

Federal tax

of

than

more

million

36

—about 55%

tons

of

There is

Within

paper

and

tion

a

or

sumer.

a

indication that the next session of Con¬
on

the law limiting the bond period
years.
There is also some

spirits to eight

rectifier advances the

and

so

The

Even

taxes

the

to

Government

they are collected from the ultimate

This would

be

con¬

very

The sale of Scotch

industry members.

oil

is

pro¬

Otherwise,

surpluses
It

inland

also impor¬

will

residual

and

major

any

be

pri¬

fuel

oil

of

the

liquidation

situation

and' the

upward

whisky has again shown an increase
has that of imported Champagne and Brandy.

indication

which

oil

price

is

that

the

advances

months.

many

lyle

trend

howev.er,
have

in

soon

been

oil

bring

in

the

c

Mcdonald

industry should have a
just passed with the

Public

Service

Electric and Gas Company

1957, for the second successive

year,

expenditures

by Public Service Electric and Gas Company for electric
and gas additions and improvements to its plant and
properties will exceed $100,000,000, again setting a newall-time high for the company. Con¬
struction expenditures for 1956 will
total
for

approximately $119,000,000, and

1957,

will be upwards of $130,-

000,000.
In

the

Service
for

past

has

plant

five

spent

Fublic

years,

over

additions

$450,000,000

and

improve¬

ments.
Two

beneficial particularly right
because of the tight money situation.

now

packaging elements,
Thomas B. McCabe
bright new array of
paper
products, have sparked impressive

whole

household

of

practical point of view,
form of prohibition right now caused

a

From

intend to give favorable considera¬
shortening the period between the time the dis¬

and the time

years new develop¬
attractive, functional

sales records for

to

tiller

protective

aad

Prohi¬

indication that they

of the world's output of

more

some

American

of

recent

of

as

The price of legal liquor is ou,t of reach

will give relief

gress

this essential commodity—were used
la this country last year.
ments

did.

breeding disrespect of the law

by high taxation.

Although the U. S. accounts for
only 6% of the world's population,

crude

demand

may,

crude

In

proof gallon, the price of liquor is far too high
bootlegging a thriving business. This condi¬

actually have

we

country.

occasion

,

moonshiner is

billion dollars

one

American people.

many

growing industries in the

crude
areas.

European

distillates,

oil,

crude

not

Eastern

11,266

12,509

Because

bition

brought

that

Chairman of the Board,

14,499

is rapidly

increasing

al¬

Finally, the oil industry will carry into the new year
burden of rising oil finding and development costs
which, during the past three and one-half years, have
not,been relieved by any advances in crude oil prices.
The world-wide shortages of crude oil arising from the

10.697

——-

tion

things

for

will

is the comparison for the last 4 years:

______

country

America's

have

McCarthy

makes

better

stocks

material extent.

any

experience aggravated

offing for

high for

new

robbing the Government and, in turn, the taxpayer, at

$10.50

with

to

finding and development costs

30, 1953

and

1956—coupled

these

before domestic

areas,

increased

recognize

Middle

increasing

ever

illegal stills by Federal

struck

every man, woman and child in this

during

from

stocks in
the Suez

large gasoline inventories in this country.

rising

business.

June 30, 1956. Here

capita

permit

Crude oil
the time of

at

running short in coastal

marily

June 30, 1956

per

is

to

and

June 30, 1955----..

annual

inland

in

may

tant

nothing

these

withdrawals

Some

while

no

cost

excessive

the

share

It

to

steps

been made for shipments to Europe. Additional
be made, particularly from the high

duction

war,

advisable, however, creates

the

in¬

United

domestic industry.

were

an¬

greater incentive to the bootlegger

a

of

the

withdrawals should

companies

and

offset

necessary

accom¬

part

of

the

This
and

crisis.

ready

much needed

a

the

on

President

already taken the

country

stocks

industry

costs.

the rate of almost

tremendous

before
other

concerned

were

been

McCABE

year.

paper

This

best be

can

action

The

to

rearrangement

efforts to help Europe, we should guard against

our

this

the

June 30, 1954

The future never looked brighter for increased con¬
sumption of paper than it does at the beginning of this

The

since

the

in

company

increases,

because this industry
exception as far as general

President, Scott Paper Company

.r.ew

price

believed

confidence for the future of the farm equipment industry.

THOMAS

biggest

small

coordinated

companies.

vitality of the

spirits industry generally enjoyed only
improvement in the year just passed

step

who

If this job is to be done, more and better farm equip¬
ment will be needed. Through hard work and research,

McCarthy

1955.

the

advance
it

and

job of supplying the food and the fiber needed to sustain

Lorn

and

moderate

compared with

our

-ever

wine

very

necessary

pipeline

tankers

action to take place.

such

President, Austin, Nichols & Co.

<

particularly since the end of World

years,

The

by

by

precipitous measures which might impair the health and

thomas

farms

country.

our

During past
oa

in

subsequently,

transportation facilities

oil

has

State

and,

areas

through

dividual

record

—

transportation; first

of

consumption.

of

plished

consideration

this

coastal

points

increasing

products in Europe
the Middle
from this country is

caused

oil

been

problem

a

the

to

transportation costs.

single farm machine units, making them
operation.. Such a trend will offset
loss in demand for farm equipment which may re-,

suit

-a

largely

be made of

can

.more

■Oi

in

as

The operation of larger farms will call for larger,

in

While all domestic signs point to continued prosperity
the paper industry this year, I cannot help but feel
the increase in the rate of profits may not be so great

merely

facing the industry in the new
of working out arrangements to

that

Furnishing

East.

,

by

secured

shortages of petroleum

have

which

in

..

fearful

mean

will

these

as

1

seven

from 22.4% to 22.7%.

•

shift in farm population to the
-only about 10% of America's population
today.
We are told that changes such
rapid

-a

during the

runs

problem

be

the

relieve

been

have

distillate yields

For this reason 1 believe

facilities

of

could

tion

than ample to

more

parts of the industry such

some

day in refinery

per

accompanied by a re¬
duction from 49.7% to 49.4% in gasoline yields, would
have decreased gasoline production by 16.5 million bar¬
rels and would have held gasoline inventories at reason¬
able levels. Meanwhile, the necessary distillate produc¬

In my opinion production facilities, which enabled the
industry to have a new high in production capacity of

problems. But aside from the weather, over which no
one has control, few, if any, seem insurmountable.
In conclusion, I would like to say a word about the

Thursday, January 17, 1957

April through October,

months,

in 1955 for
facilities to produce the multiplicity of paper prod¬
needed for better, more modern living.
greater than the $518 million invested

flected

barrels

000

some

was

...

major

stations
Public

electric

under

are

Service,
Station,

Linden

generating

construction

of

one

by

which,

the

is expected to be
ready for operation this year. Prep¬
aration of the site for the other

new

station, the Bergen Station in Ridgefield, began in 1956. The Linden
Station

will

have

two

electric

Lyle McDonald

gen¬

erating units of 225,000 kilowatt capacity each and the
Bergen Station will have two units of 290,000 kilowatt
capacity each. One of the units at the Bergen Station is
scheduled for service in 1958 and the other in 1959.
Because of the expected
continuing demands for elec¬

though household paper products account for
only 5%
of total paper industry output, tnis same
segment of the industry during the past ten years has

than the rest of the trade.

tric service, the
company is planning the construction of
an
additional
generating station to have an initial

grown by 80% as compared

good

capacity of 300,000 kilowatts.

to 62% for the whole paper

industry.
This

marked

trend

toward

increasing
production
and consumption of household tissues, which has been
gathering momentum over the years in answer to con¬
needs

sumer

and

demands,

shows

every

indication

slightly better

import

feel

such

items

toilet
the
but

that

the

as

tissues

rapid

directly

American public

In

not

only

to

both

of

the
gas

liquids.

demands

have

beep

reflected

output

consumption

and

of

such

desirability

tissues,

wet

name

products
of

their

have
brands

improved

by

specific

by

the

tissues

which
oil

tissues

The entire paper

to

company

industry, tuned to the

And

the

sums

consumer con¬

for research and de¬

industry

help bring to the market these




new

products.

L.

F.

line
McCollum

off

t

problems
of

managements.
is

the

problem
gasoline

have

accumulated

or

On Nov. 30,
were

about

meters.

The

expanding

require

the

demands for gas service will also
additions and improvements to the facilities of
A major part of the increased
require¬
is expected to stem from
the addition of new

company.

gas-heating customers. More
tomers

were

18

in¬

gaso¬

mil¬

11%, above those

of

This problem is particu¬

larly distressing because it is one that could easily have
been
avoided
through more prudent management of
refinery operating schedules. A reduction cf only 109,-

than

28,000

of

such

cus¬

added

during 1956 bringing the total num¬
gas-heating installations to approximately 190,000.
During 1957, the company plans to
ber of

install

miles of

280

gas-mains and 30,000 gas meters.
The program of

converting customers' appliances from

mixed gas operation

of

large

year.

tric

in those

the

inventories

year ago.

a

which

lion barrels,
a

h

approaching
industry faces

economic

there

ventories

s o 111 e w

In

require the attention

to

has had underway a
tremendous program of investment in
plants and equip¬

ment

will

working

softer
—

major

First,

quality

producing

colored

be

the

year,

during the

cept, is appropriating larger
velopment.

and

new

three

few\

a

strength

may

smaller than in 1956.

and

1956.

over

company plans to

install 3,000 miles
of wire, 6,200 distribution
transformers and 8,200 street
lights: and, in addition, set 11,500
poles and 28,000 elec¬

ments
one

of further growth,
although the rates
of increase in domestic

the

met

output have been
favorable earnings re¬

in

ports by most oil companies.
The year ahead promises to be

paper products, resulting in very strong growth rates
particularly in the household field. Bolstering the trend
toward increasing production of household
tissues, manu¬

facturers

During 1957, the

These gains in physical

time-saving and money-saving commodities.
these

McCOLLUM

1956, the petroleum industry enjoyed another year
growth.
New high records were set in
production of crude oil, natural gas, and natural

new

of

F.

continued

story

Many

eat.

Upon completion of these
installations, the total effeeof the company's eight stations
will be 3,352,500 kilowatts.
This will represent a 59%

tiye generator capacity
increase in capacity

groups of our population. Another facet
is the dramatic change in the mode of
living of our people, for more and more of us are moving
to
the suburbs, are eating more meals
outdoors, are
searching for greater conveniences, and are seeking

the

favorable

President, Continental Oil Company

high rate of population growth in the postwar period,
to rapidly rising incomes and standards of
living

for whole

of

more

would not rather drink than
L.

of

in the consumption of
napkins, facial tissues and

attributable

somewhat

All of this is predicated on a
generally. If times get bad the liquor business,
by reason of the high tax, would be the first to suffer
because, contrary to the belief in some quarters, the

growth

towels,

paper

is

position

a

one

year

continued growth in the years ahead.
I

in

trade

than the

year

gas

pipelines

affect

to the

outlying sections
is

use

of

straight natural gas

of the

territory close to natural
being continued and during 1957 will

approximately

90,000
additional customers. By
the end of the
year more than 200.000
customers will be
served with
straight natural gas.
To
summarize, because of ,the
,

demands

for

continuing growth in

electric

promises to be

one

Electric and Gas

and

gas

of record

Company.

services,

the

year

1957

activity for Public Sendee

Number 5604

185

Volume

The Commercial and Financial

4 . .

william a. McDonnell

operate

billion

or higher

high mark, although
here the gain over 1955 will be more
podest, 3 to 4%.
set a new

records

These

the

in

investment.

ployment

years ago

the Interstate Commerce

standard rate of return of 6%

a

In

despite

order

main
A.

W.

McDonnell"

half,
about 75% of the

on

as

a

on

to

continue

good investment.

strict

in

the open market,

If

that

state

it

was proved con¬
role in the nation's"

transport yet invented in the history of the
haven't scratched the surface of operating

spent by the railroads themselves on their own
without tax
subsidization.
OUT maintenance

must re¬

earmarked with a reputation
continue to be set back by

should have been

changed.

BANK

BROOK NATIONAL

cal

DECEMBER 31, 1956

1'

ASSETS
Cash

the

of

area

spending,

consumer

the

U.

satisfactory

reception of the new automobile models to date point
to the likelihood of a 10% increase in automobile sales

t

%

in

rises

ceeded

of

area

spending,

government

inflation

MR.

"MEADOW

BROOK"

is

no

optimism

is

tempered

B.

LIABILITIES

busi¬

McGINNIS

President,

Boston

4T '

Surplus

Maine Railroad

and

of

wishes
'

economy

changes are

industry if it is to sur¬

the

vive

of

one

as

to come.

ently efficient
in this nation.
The

first,

and

perhaps most

in

the railroad

industry.

im¬

same

second

change is the
that

each

'

,».»*;
'

r

4,948,332.54

1

&

Discount

2,147,441.41

for

796,225.64
132,516,031.90

regulation

Time

Because of

...!

131,185,771.03

Deposits

..263,701,802.93

Deposits
Total

anything

manner

and

..

Demand Deposits

long-since outmoded restrictions on
our
business,
we
cannot compete
or

for

Taxes, Interest, etc.

approaching equal loot¬
ing.
We are forced to try to carry on the business of
transportation of people and goods where competing
forms of transport are not regulated at all, or as much,

yrith other carriers

'

Reserve

examination and

government

of

revision
Patrick B. McGinnis

'

$ 17,731,863.28

Capital Accts.
4i»,

Interest

the basic and inher¬
methods of transport

portant, is the close

*p

7,709,290.00 1

Unearned

Bpth of these
desperately needed by

railroad

*

as

the railroad

TOTAL

industry.

almost equally important
local public regulatory bod-

V..»

perhaps

realization of
service

offered

by

the

$289,325,665.80

railroad industry

must be

financially sound and able to stand on its own
leet. One service must not be subsidized at the expense
of
another. Each service performed must show on the
valance

sheet

expansion

or

the

justification for

cutback.

f?r

The

continuance and/or

railroads

have

been

held

prerogative

many years from exercising its own
deciding the profit and loss results of its business.
®Sm3tory bodies of many states have not kept pace
vvit"
simple economic laws of allowing the railroads to
•

in

'

2,537,823^28

Possible Loan Losses

visional

several years

f

,

«

Reserve

is healihy. Our prooptimism is based on sev¬
eral major changes concerning our
business that may not happen for
and

:

few..

expanding population

an

.

Total

services than ever before.
based on meeting the

more

Business

...

Undivided Profits

be hopeful and tenta¬
America is growing. More people re¬

goods and

.

-

«i

•

operations and finance

for the future years continues to

tively optimistic.

7,484,750.00

Capital

Outlook in the field of railroad

les

$289,325,665.80

TOTAL

and

with an appro¬

be

to

ever

PATRICK

in the

1,870,729.79

Assets

Other

priate degree of caution.

more

1,156,544.04

as

there

The

^5,045,103.07,

readjustment

beer^ brought under full control. Accordingly,

or

...120,732,926.59

credit, the alternative dangers of
are not to be ignored.
As
clear evidence that the business cycle

well

as

and

has

quire

•

jjt 39,895,611.42

Furniture & Fixtures

1957 appears
at levels of activity

yet

ness

Agencies

Bank Buildings

some

However, with the economy
close to full utilization of resources of manpower

materials,

'

'

Ins.

Other Loans & Discounts

considered, the outlook for

good.
so

or

..12,391,633.61

,{'

spending by the Federal Government is

Everything

|

by U. S. Gov t

implemented.

are

Guaranteed

Loans

•

.

75,496,063.97

^

..

Securities

•

<

.

$ 32,737,053.31

...

prices.

increase
likely
to stem from the existing international crisis.
State and
local governments may be expected to increase outlays
as projected
road, school, and other building programs
the

In

in defense

'4

compared to 1956.

as

Banks

Gov't Securities

S.

Other Bonds &
w

The steps that are being
taken to ease mortgage borrowing may well result in
some mild improvement in residential building.
General
retail volume is being satisfactorily sustained and some
stimulation may be expected from the current uptrend
in wage rates, whose rises thus far have generally ex¬
1957

for

Hand

on

and Due from

tion.
In

OF CONDITION

CONDENSED STATEMENT
AS OF




Convenient Offices
MEMBER

FEDERAL

property

of way
Mechanized and efficient equip¬
ment is the by-word today.
Milions have been spent in
this feature alone. All of this talk of efficiency would
be in bad form if you couldn't measure results.
We can.
Continued on page 94

we

THE MEADOW

and book¬

There is a great field for expansion
of efficiency in our business.
We have changed our
entire motive power picture since World War II.
The
diesel engine now heads up 85% of the freight train
mileage run in the United States. Our capital improve¬
ments program is fantastic.
We have spent $11 billion
for improvements since World War II.
This money was

com¬

components of the American economy, which, more¬
over, were followed by a steel strike of a month's dura¬
tion at mid-year, were more than compensated for by
a dramatic expansion of business spending in machinery
industries and in non-residential construction.
Con¬
sumer spending for nondurable goods and services con¬
tinued to be well maintained and expenditures of state
and local governments also tended to rise.
The levels
of export trade exceeded those of 1955.
Now as to the outlook for 1957.
In the area of busi¬
ness spending it appears likely that the level of business
outlays, as indicated by reported capital appropriations
of manufacturing industries, will persist for a consider¬
able time at levels substantially above those of 1956.
Enlarged demands in the American economy arising from
the Suez situation would seem to support this assump¬

world. We

keeping economies.

picture has

government regulations which

me

and first line of defense was indispensable.
;
The railroads are the most economical form of bulk-

invested

business, our stock

let

industry,

clusively during the last war that our

Commission

money

profit and remain on equal footing with other Amer¬
If anyone doubts the value of the rail-:

road

plant. This rate has not changed in many
the decreasing valuation of the dollar.

of similar . 1955

80%

and if we cannot operate our
business, then we cannot hope to makd

a

as

ican industry.

were

story.

1955 period and housing starts fell to about
levels.' The declines in these criti¬

parable

railroads

the

lines

approaching the ICC figure.

practically without

rose

interruption through this first
automobile production tell to

public and

branch

Moreover, in addition to this fact, there is a condition
far more serious.
Money invested in railroad property
throughout the United States is currently earning less
than 4%.
It will surprise many to learn there are no
more than a handful of carriers today
earning anything

,

93

economy

years

personal incomes and em¬

While

of the

the

the

in the railroad

redirection of output away from cer¬
tain key consumer' industries and

.

out 40 years ago,

thrown

Where

business.

a

set

aggregate

are

toward business

going

a

have consistently
extremely unprofitable,,
regulatory bodies have been consistently reluctant to
act impartially after hearing the railroad's factual side
by

shown

Many

particularly striking
in view of developments during the
first six months when the level of
employment and trade was well
maintained and the psychology of a
boom preserved, despite a massive
statistics

as

Of tliefee two changes jusf mentioned, one of the most
important by-products is the right and chance to make
a
profit.

vear

also

companies

business

age

clear that 1956 will be another record year
for our economy as a whole. The Gross National Product
.—the dollar value of all goods and services produced
It is now

the year—will total about $411
about 5% above the previous record
of 1955. Industrial production

their

certain branch lines have dwindled from lack of patron¬

president, First National Bank in St. Louis, Mo.

in

(239)

Chronicle

Throughout Nassau County

DEPOSIT INSURANCE

CORPORATION

'

The

J

B4,(290)

Continued from page

93.

yard, roadway, and motive power improve¬
railroads were able last year to break all
previous efficiency records in ton miles per freight
train hour, in daily mileage of locomotives and cars,
and in the average speed of both freight and passenger

insures

directly passed

vigorously working for, and hopefully awaiting the day
when enlightened, elected representatives of our fel¬
low

citizens

will

the

take

proper

and Federal government to allow us

RALPH T.

expected

steps in local, state,
to serve them better.

in the past.

American

Gas

remunerative

practically

prior

untapped

pleted

construction

..

to

1949.

Natural

com¬

its

of

first

w •*.

has

of

area

of

Problems

region

the

American

•

Pipe

Line

Company.

day, with further expansion pending.

The

American

line will

new

needed in the future.

as

When

storage

geographical

distribution

a

fields

operation, can be realized.
strategically located in close

are

proximity

to

distribution

markets,

their

value is further enhanced. Our
system has such fortunate
conditions.
We have storage fields in central and west
central Michigan with

working storage capacity of ap¬
proximately 100 billion cubic feet. On a day of peak
demand, the fields can readily deliver in excess of 1.7
billion cubic feet.
half

times

two

pipe

This

is

approximately two and onedelivery capacity of our

the combined daily

line

companies.
The fields also permit our
pipe line companies to operate at a very high load factorthroughout the year, with resultant efficiencies and
economies.
Our

markets

tures,

where

located" in

are

areas

of

cold

tempera¬

large and profitable heating load is
readily available, and we serve some of the most
highly
a

industrialized and rapidly growing sections of the
coun¬
Among the principal areas served are
Detroit,
Grand Rapids, Muskegon and Ann

I look for

those of

Arbor, Michigan, and

With

operation

of

strategically
The

pipe line,
gas
supply,

our new

located,

new

business

and

1957,

year,

we

now

have

well-balanced
underground storage fields
large and growing markets.
promises to be one of good
a

generally and a year of further growth and
for
the American Natural
Gas' Company

Mclaughlin

but

can

that

say

outlook

the

the

for

of

the

&

Light Company

increase

m

expected

use

to

electricity by

double

in the next ten

busy

of

period

the

years.

of

nower

This

expansion

present

demands

means

for

customers,
of

is
region

the

Since

the

electric utilities.
Use

of

out

have

to

great promise.

duction

tomers

of

passing

year,

through

life

to

as

electric

energy

by

cus¬

Power &
Light
Company has increased 60% in the
past five years. Average annual use
of electricity in homes
on
our
lines
has
and

now

passed 6,500 kilowatt

such

new

clothes dryers
make

We

an

look

appliances
are

as

a

short-terip

were

in any

confidently for

an

annual

chemical

■

-

public opinion survey conducted for Puget during
by Elmo Roper and Associates shows that by a

This

file
an

itself

products

for

manufacturers

industry,

one

of

and

A substantial

and

public

in

to

power

cooperate

and

work

Out of this mood

ing public support

of

moderation

systems

Districts,
past

the

and

and

Chelan

has

the

Northwest's

Investigation

year.

kilowatts

Federal

15 to 1) for the Puget
unique cooperative under¬

laVinf' of chips and wastetoward
fS TVlng r?pidly
for
zauon




ac-

more complete utiliand
soft board,

hard

peak

near

Power

additional

of

capacity,- of

Commission.. Realization

of

We

in

our

o

curl
In tl

levels,

Our
of

working

positive

expansion

and

spent about

$21,000,GOO in 1956

and

an

part
the

of

a

years

company

The year

1956-1959.

better.

This

will

increase

the

was

a

good

one

size

for Puget, the best

had, and all signs indicate that
This

marked

progress

the

reflects

1957

the

195
the

.

an

of

The

are

every,

long

it

run,

is

of

will

has

been

Bank

memb

National

booming.

welfare

The

is the

of all the

Bank

best

single

&

•

'

;

;
measure

Gross National Product:

goods«and

services

pro¬

Federal

faith and confidence

peak.

as

Reserve

Its

recent

r

hi

-_i.___-i.__

a

!

•

134

tivity,
con-m

unemployment is
(3.6%

of

c

con

,

-

-

Our total labor force including the
•armed
forces-is over 70%'-million

force).

a

inflat

147

'labor

"u

cner;

97

and

I

fi ccono
IfWhen

he

120

smalh

^their
ic bonds

„

Nov. 1956

tively

I
c

fjj tions

|PPf

record

139

persons

'cserv

each

ars

follows:

1953

1

is at

1955

.

j

| have

Board

Production

1949

the

-

in 191:

«,

rela-\«

Cra„dali M.ivin

civilian

Personal

disposable, income and personal
expenditures are at all-time peaks.
It is

significant that with the high rate of personal consump¬
tion

expenditures, now at a $267 billion annual rate,
savings are also at a high level as may be

personal
seen

below:

.

Personal

Savings

(Billions)

.

Savings

as a

.'

>

% pf

Disposable Income

1947

$7.6

4.0

1951

17.7

7.8

19.7

7.9

be

great area that we serve, great in
physical re¬
and natural
advantages, but greatest of all in
people who live here. Physical resources come to
life only in the hands of creative
people, and it is they

nearly $414 billion,-

1951

we

growth

Cot
creasii

~a

MELVIN

Merchants

value

Industrial

all-time

1953

sources

our

system, where
business. .'In the

$17 billion from 12 months earlier,

Even

the

who provide the foundation for
in a greater tomorrow.

There

of

for

up

..

by almost 60%.

1956

ever

of

$25,000,000 is scheduled for 1957
$90,000,005 construction program planned

v

in¬
operating in a
private management

exacted

annual rate of

consumption
company

segments

an
-

was

for

price

I
•

ince

monetary

Index

together

.

some

CRANDALL

economic

our

the

program for bringing ample lowto the region. Even when power was inter¬
jected into the 1956 election campaign it did not become

side,

theJ in¬
•
*»

of

economy- is

philosophy and

"It

reins

raising

in spurring

and

for the chemical industry
individual companies will

curve

in

processes.

in

Trust Company of Syracuse, New York

power

others:

the

both

duced in this country in a year.
Recently Gross National
Puget's.'-* .^Product has beenroaring along at

this

for

is

President,

which

region are able to contemplate such ex¬
pansion because we know we are in step with the
people
in

dividends,

world

either side of the line.

on

reversals

This

the

I

Snohomish Public Utility
marked progress during the
is > going forward
on
about

than double that of 1955.

have

major

high
jxpens

price well worth paying.

and

made

be

competitive

holds

overwhelm¬

taking, the first endeavor of its kind in the entire coun¬
try, includes Puget, the Seattle and Tacoma municipal

even

wood

pendii

terns 1

of

segment

one

pent c

I These

lasting effect oh
With general indus¬

-

and down

to

dustry.
free

(better than

Sound Utilities Council. This

McKee

The

"spol
jusine:

a

products and

new

paying

1957 is moderately upward,

bound

together, in¬

emerges

is

around the

progress.

vary up

majority feel that it is essential for private

stead of being at each other's throats.

our

processors.

The cu

(

.

i1..

Although the general

that by a nearly 3 to 1 margin they prefer the
concept of cooperation between public and private power
to either alternative of all public or all private
power.

as

Large population increases
making the Pacific Northwest an
important market

any

have

likely to

industry as a whole.
slated to continue at

levels

dustry's

and

for

B.

in

downtrend

not

investment

health

better than 2 to 1 margin the people of this region reject
the idea of Federal control of their electric utilities,

The

Paul

1

Noti<

pro<-

' ■ :

•'

:

and development of

covery

A
1956

expenditure of around

average

home use of
10,000 kilowatt
within the foreseeable
future.
Industrial sales of
electricity have
risen
in
step
with
the
system's
total load growth and we
expect to
see
continued
expansion.

the increased

of

way

growth."

hours

is

trial tOutput

,

by

statistically.

major share

a-

chemical plants will continue to operate in high gear.
;ood.
etin 1
prevented
As the basic supplier of materials needed to keep fac¬
.956"
by man's .shortsightedness from-,betory and farm wheels turning throughout the - world,
unds.
-ing strong and dynamic. Likewise
the Ur S. chemical industry serves an expanding mar¬
the
electric -utility
)bliga
industry must
ket growing at the rate of 2.5 million new Americans
1 nonthi
-never forget that we in America live__.
each year.
Frank McLaugblia
On a global basis, population is mushroom¬
in a free choice society and a busi¬
fvas 1,1
ing at the rate of 80,000 a day—another form of
in-| i u%.
ness prospers only by the will ancLbestowed confidence
surance for the industry's long-term growth.
of the people. This is the key to the .greater destiny the
1 than t
Yet, to gain and hold these expanding markets against
Yeasu
electric utilities seek and can ortly be achieved by the
the resurgence of a strongly competitive overseas in-^
best in performance and faithful fulfillment of the mani¬
today :
dustry, American chemical manufacturers this year will
in teres
fold obligations of a public trust.
have to place increasing emphasis on research, sales- :•
for ere
In recent years dramatic changes in public attitudes
manship, marketing and technological progress. Chemi-v
mercia
have made for a much improved power outlook in the
cal'industry research investment in' 1957 is expected to
it the
Puget Sound-Cascade region ofWashington.^.Of the
total $400 million. In the pharmaceutical branch of the
Gover
utmost
significance is the deep-seated desire of the
industry,"where research expenditures are heaviest, five
people for the new cooperative approach on power,
cents out of every sales dollar is ear-marked for dis¬
which is also strongly and widely supported by the press.
utilities

only beginning to

impression

situation virtually
reductions, industry will

international

the

economy

the

be

apparent well into the cam¬
paign that the power issue in tire Pacific Northwest was
not an-issue with the
voters,' In fact, to the contrary,
people want to see public and private power live side

electric

in

prices with highly competiexisting throughout

costs.

the

public necessity be enabled
healthy
and
to
thrive.
It
would be catastrophic if the electric
to

made

hours,

shoulder,

for

service

of

must

As

-

industry,

likelihood of ^narrower profit margins,
there are strong signs of continued progress for the
chemical industr^ in 1957. - The industry today reaches
deep into every phase of life and provides the raw
materials needed by every other major industry.
This
diversity of markets has an important stabilizing effect,

ever-expanding areas

basic

sales.

as

chemical

will;be tempered by ris*
and a 1 generally ; stable

substantial tax

any

Despite

political football. As Louis Harris, who conducted the
Roper survey for Puget, reported after some
soundings

Pacific

costs

^

each

With

a

electric

t

-

programs

troubled

the

rules

cost

a

V-

However, those firms with
and aggressive marketing
plans can expect to do relatively- better proiitwr^e than :«
the average in the pharmaceutical field.
:
-;

electric

plans, in cooperation with the other Council
members, will provide power adequate to meet a peak
demand of around 1,000,000 kilowatts
by 1965, or more

Northwest in population busi¬
ness, industry and
agriculture, together, with the steady

increases

--

conditions

tive

research

successful
>

present

Pacific

r

.

the year.

:;

utility industry is for continued growth? To do other¬
wise is to sell this country short when the future holds

the

President, Pacific Power

;

-level of

-

1,200,000 kilowatts has been licensed for construction by

Growth

ing

John E. McKeen

system.

McKEE

rate

same

earnings

Power & Light Company

President, Puget Sound
Who

>

the.

at

.•»./

-

2,800,000

B.

iy

;-the M est "of- the

'

prosperity

PAUL

price

keep

..pharmaceutical segment of the inoustry iliay rise somewhat but not

ex-<

impressive record of growth in the years

an

frank

try.

Milwaukee, Wisconsin.

probably,
minimum.

a

Profits for Some-companies in-the

-

Underground storage fields are most important factors
in the operation of our integrated natural
gas system.
It is only through the use of the great
storage capacity
of these partially depleted gas
producing reservoirs that
the full potential of the profitable house
heating market,
the backbone of

to

-

v

j

-

immediately ahead.

August, 1956, American Natural
placed in operation its second pipe
line, built
and
operated
by
the

Louisiana

will

AV:

generally

are

-

Texas.

enable the American Natural system to
augment its gas

supply

ditiohS
,

-'

panding nation.

gas

Louisiana's initial daily capacity of 300,000,000 cubic feet
has already been expanded by
60,000,000 cubic feet a

.

coupled with competitive conwithin'" the;; industrywhich

costs

*

*

Even

Ralph T. McElvenny

likely to

not

are

sales increases in
the year ahead? Behind this squeeze
orr' profits are increased? operating

•

v"-

industry

keep _pace -;with

'

so

Panhandle

chemical

..

l

In

the

■

T

sys¬

bringing

line,

''J

the estimated $24 billion achieved last
the same time, however, ^-profit rates in the

yeaiv^At

though the capacity of this
pipe line was doubled in 1950, the
gas supply was inadequate to meet
the constantly
increasing demands.

from

pipe

"

■

<

gas

share in this progress.

•utilities will

'

ning* ahead, of

of use and a
steady stream of new applications,
electric power becomes even more
indispensable to the better and more
aDundant? life and to the economy
and security of our nation. Anything '■

tem-owned

'

•

pansion and progress. The outlook for the Pacific Northsis bright.
It is a favored region because of its
climatic and geographic advantages.
It has many .re--,
sources to
be developed to serve the needs of an ex¬

heating market,

that year American

In

"

"

service in many Pacific /
Northwest communities will stimulate development and
have broad benefits to the economy of the area. Electrie

system

house

'

west

is con¬
tinuing its rapid growth, made possible by its expanding
markets and the construction of its new pipe line to
tap the rich gas producing areas of the Louisiana Gulf
Coast.
For
years
a
major
many
problem in our system has been the
obtaining of adequate supplies of
natural gas. Great volumes were re¬
quired for industry and to serve Ihe
Company

4''t-'V.

r

.

Recent advent of natural

McELVENNY

Natural

"

McKEEN

President, Chas. Pfizer & Co., Inc.
*

in importance. Agriculture is highly
use of electricity to feduce costs and

grow
Rural

production will increase? in the future as-it

increase

Chairman, American Natural Gas Service Co.
The

to

diversified.

to the consumer, we are

on

^

;

canning and freezing of fruits and vegetables may be

This is just the
beginning.
We are trying to plan optimistically.
We
are
trying to operate our businsss efficiently in order
to compete, to make an equitable return on investment,
and to lower the costs of operation.
Although these
are

•'*

-

1

Another year of good business is on the horizon for
the-chemical industry, with sales volume in 1957 run-*

-

region's favorable crop conditions, the

Because of the

,

'

in-

long-term outlook lor the-wood products

a

dustry.

trains, and in net tons per freight train.

benefits

Sustained

power.

the

f

•

Thursday, January 17, 1957

. ,,

E.

JOHN

:

of manu-industrial
yield management of forest lands

pulp and paper. This means a broader base
facturing operations and greater demands for

t

Because of

ments,

Commercial ami Financial Chronicle

1956 (3rd
Also

16.6

6.1

Quarter)21.4

7.4

;

noteworthy is the fact that savings are a healthy
of ever* this-high :rate of personal income.
The-American consumer is not overburdening himself
percentage

Arthi

lie has the wherewithal with which to
chooses. >■
Two large and important elements supporting our Gross
rational Product are Federal expenditures for National
lecurity and business expenditures for New Plant and
Equipment. National Security expenditures are currently
funning at an annual rate of $41.9 billion, up $600 million
[rom a year ago. The trouble in the Middle East and
debt and

ith

o

n
e

ig

-

if he so

kUy

v>

Number 5604%. The Commercial arid Financial Chronicle

185

/oiurne

^

h
JS

t'

iave

The

ot

losses

paign

have

such

1955

'
'

______

3rd Quarter

______

4th

Quarter i

ruin

37.3

reason

Estimated

___.

38.0

the

"spot checks of key firms and localities indicate that
business men anticipate an increase in plant and equip-

le

outlays somewhere in the neighborhood of 10%."
These two factors of spending for national defense and
ent

es

w

pending for new plant and equipment are two powerful
will tend to support economic activity on

lis

Mercer

of

associated

of this formula should

term
Surety includes several types of bonds.
guaranteeing performance of contracts, known as
contract bonds, produce better than 60% of the total
Surety volume, hence Surety production in a given year
depends to a large extent on construction activity in that
year. The experts predict that dollar value of contract

a

o m a n

awards in

this

by

1928.

methods

No

related

were

embezzler

of

she

proved

received

captions
'

as

But

trusting employer.
However, by
loss and interesting sidelights,
countrywide front-page publicity and

"Miss Minnie's Millions."
have

this and similar less publicized
reason

result

a

incidents, there is

to believe that volume-wise 1957 will be

Fidelity

year.

Then, too,

agents

a

and brokers

bond

in

are

that Surety premiums in

losses must be included in any

been comparatively few. It is
industry that a trend toward such
definitely under way—first because defalcations
the increase, and secondly because employers are

Dishonesty

have

losses

our

losses is

of

on

buying

every

of insurance. This leads to but
will increase both in

large amounts

conclusion: That Fidelity losses

one

frequency and in severity.

banner

Continued

realizing

on

With interest cost a tax deductible
the higher cost of funds is not likely by itself
|9o curb business outlays for new plant and equipment.

s-

In the field of commercial

Is,

banking the outlook is also

Hood. The December issue of the Federal Reserve Bul-

*?•

has

etin

article

excellent

an

"Capital

on

c-

956"

If

with

uhds.

As

analysis

an

the

of

knows,

everyone

demand

interest

Markets

and

rates

in

supply

have

of

risen.

ris

ti-

fj nonths

now yield 3.26%. During 1955 their average yield

lfS%

vas

during 1954 their average yield was only
Government bonds maturing in less
han two years (June
15, 1958) yield 3.66% and U. S.
"reasury bonds, the 2%s of December 15, 1967-72, sell
oday for less than 88% of their par value. This rise in

sfi;

.1%.

; ;i

LStf
n-r

ill

and

Marketable

interest

rates

reflects the large

NATIONAL

1857

at the same

tie

time they

Government bonds

as

TBUST COMPANY

and

CHICAGO

OF

lit
Century

increase in the demand

In order to help meet this demand the com¬
mercial banks have, of course, increased their loans and

to

BANK

'957

for credit.
"

ILLINOIS

CONTINENTAL

^Obligations of the Federal Government maturing in three

Statement of

Condition

have decreased their holuings of
is shown

December 31, 1956

below.

ve

RESOURCES

s-

v

iS.
-

ig

All Commercial Banks

,

.\.

"

Cash and Due from Banks.

(Billions of Dollars)

-

V

.

'

y\

Dec.

31/1945—

Dec.

31,
Dec. 30,
Dec. 30,
Dec. 31,
Oct. 31,

til
re

1a

ot

1947

38.1

Other Bonds and Securities.

$90.6
6.9.2

175,241,080.83

Loans and Discounts

Stock ,in Federal Reserve Bank.

52.2

62.0

70.6

69.0

Customers' Liability on Acceptances.

1955.

82.6

61.6

Income Accrued but Not Collected.

1956

57.4 I

88.8

banks

have

found

in

themselves

:

..

.

1,776,932.26

.

.

9,346,756.66

.

7,500,000.00

Banking House.
in¬

an

Bank of New York has raised
its discount rate six times

April 15,

1955, thus making it

member banks to borrow funds.

more

'$2,769,263,133.53

have been
negative for all member banks as

whole for

a

j| ?ach of the first ten months of 1956. Under such condijons commercial banks have improved the quality of
•
I *oan portfolios and as loans yield more than do
i„

^onds, the income of banks has
It

been high.

as

a

whole

that restraints

on

$2,496,971,564.75

Deposits....

1,776,932.26

Acceptances.
Reserves for Taxes, Interest, and

13,935,347.27

Contingencies.................

Reserve for

Expenses..

18,106,691.88

Income Collected but Not Earned

Capital StOCk(2.700,000 shares simsb Fob.

is, of course, sound from the point of view of our

conoiny

LIABILITIES

difficult for

"Free reserves" (excess

J"eserves of the commercial banks less their borrowings)

j
■w

6,450,000.00

.

..

creasingly "loaned up" position and the Federal Reserve
since

1,166,841,545.41

.

1950_________

-

671,049,560.83
731,057,257.54

.

1954_________

Commercial

a

Obligations

Loans•

$26.1

.$

.

United States Government Obligations

U. S. Government

n-

credit

continue.

Surplus..

.

2,354,847.20

.

90,000,000.00

14s 10.56. Par value

125,000,000.00

.

Undivided Profits.

21,117,750.17

our economy is running full speed as it is now any
eneral increase in
bank loans merely makes more dolars
available but does not increase the supply Of goods.
;

siS T.esult

inflation.

such

a

$2,769,263,133753

situation would merely be further

United States Government
are

hi conclusion
it may be said that with the outlook for
.continuation of the current high level of business act

:

«f

*n

iy57.

#1

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

■

.

ARTHUR E. McLEAN

k;*.•

WALTER

The Commercial National Bank,
Little Rock, Arkansas

"'-'I?/

our

economy..

If this

can

is -still

with

remains

a

us! and

CHAUNCEY

that

BORLAND
LAWRENCE

Managing Owner
Borland Properties

the

National income will, remain

at

CHARLES Y.

Incorporated

high level, but business and indus¬
try will face keen competition, and
lines

of

business

will

have

difficulty profitwise. "r :
Farm problems still remain to be
solved, and outside, our borders we
face grave and serious world, situa¬
tions. Nineteen fifty-seven promises
to be at least an interesting year.




FREEMAN

H.

MORSE, JR.

President

A.

PETER

Board

JOHN

Company

HOLMES

H.

Company

FRANK

Chairman of the Beard

SALLE, JACKSON, CLARK

HERMAN

AND QUINCY STREETS

WALDECK

Banker

Sears, Roebuck and Co.

Member Federal Deposit Insurance

F. TAYLOR

Banker

THEODORE V. HOUSER

The Cuneo Press, Inc.,

SCANDRETT

A.

Railroad Executive, retired

President

.

MOULDER

International Harvester

Chairman of the Beard

Swift &

V.

President

HEWITT

JOHN F. CUNEO

LA

ROBERT

President, Deere & Company

"

The Cudahy Packing Company

.

MITCHELL

Partner

Company

EDWARD A. CUDAHY
Chairman of the

H.

Fairbanks, Morse S Co.

WILLIAM

CRAWFORD
Retired

WILLIAM

Director

Cowtes Properties

D. A.

LEAVELL

Banker

FISHER

Commonwealth Edison

'

a

KENNEDY
R.

Mitchell, Hutchins & Co.

ALFRED COWLES

/ '

JAMES

Director

President
Pullman

.

this

P.

M.

President

Company

General Motors Corporation

CHAMP CARRY

Inflation

.

B.

DAVID

FENTRESS, JR.
President

*

many

CUMMINGS, Chairman

Allstate Insurance

checking

problem.

of Directors
J.

CALVIN

ADAMS

Real Estate

I

take place

at a slower -rate, I think
country will be better off.

Q.

J.

^he year 1957 will be one of further growth and an expansion of

*.:•."*

I

Board

.

President,

obligations carried at $209,132,676.62

public and trust deposits and for other
as required or permitted by law

secure

purposes

1 uterest rates should continue to be firm and
/iS^rcia^ banks should continue to enjoy good business

i p
%

pledged to

Icott>
.•

i

page

xpense,

)h

1957

1956.

business,

our

high percentage

a

premiums.

ahead of

felt by many in

it under such

as

private construction,
heavy engineering and

on

Despite the unprecedented volume of cash securities
by so many people, very large

Judging from the

received

by about 7%.
credit will curtail

on

and merchandise handled

are

we

effect

1956

of

forecast.

the

inquiries and orders

little

Present indications

of the size of the

case

will exceed those

public projects which produce

contract

will be well

again

once

have

will

but

1957

feeling is that restraints

own

high plane in 1957.

i

of

ti-

use

terns which

-t,

.

since

spectacular

efficiently,

financially

should

scientific

Those

institution with which she

newspaper and magazine articles featured

issue of the First National City Letter states

The current

of

and

The

cam¬

case

member

company. Proper
definitely increase sales.

how easily the trusted employee can

35.9

Notice how the big increase here took place since 1955.

5,

H.

Estimated

Quarter

1957, 1st

B.

31.9

_______

_.

the

new

a

of which is available through the Association or

copy

any

who,
incidentally, is just beginning a 20year prison term. Quietly, but quite

•

32.8

2nd Quarter

is

in

to some extent residential and other

been

new

■*-'

28.7

—

Quarter

1956, 1st

a

proportion

business-w

is found

answer

My

employed

it

losses

The

formula prepared by The Surety Association of America,

recent

sales

carry?"

financial

28.3

____

I

and community leader who stole
ap¬
proximately $3 million from the

had

________

and. agent was, "How much dishonesty insurance

or

respected

heavy losses inevitably result in higher premium
are making haste to close sales at
present prices.

Heretofore the question most perplexing to both client

some

catastrophic
emphasize as no

among

$19.3/

1953III

been

highly

(Billions of Dollars)
1949

rates

industry advertising could
possibly do, the need for adequate
dishonesty insurance.
Outstanding

)•>»

le

that

of

which

Expenditures for New Plant and Equipment

%

MERCER

There

really been explosive in the last year and a half.
following data will present the story:

n

H.

Fidelity business, generally referred to as dishonesty
insurance; will snow a normal premium increase because
1957 is the anniversary year of a
great many risks
written on a three-year term basis.

expenditures for New Plant and Equipment

Business

ie

B.

President, Fidelity and Deposit Company,
Baltimore, Md.

Uissia's exposure of her true self in Hungary would
Indicate defense expenditures are more likely to increase
|han they are to decrease.

|4

95'

(291)

CHICAGO 90, ILLINOIS

Corporation

96

<KI

The

(292)'/

Continued jrom page

will in all probability increase/ The
ever-increasing volume of contract
awards has created new and difficult problems even for
losses

Surety

and

tremendous

experienced and qualified contractors. It is anticipated
during the year with

that contract defaults will increase
resultant

higher losses to surety companies on contract

bonds.
In

■5.

extending bank credit in a period of high economic
activity are given adequate consideration.
This is a
phase of our business to which too much attention can¬
not be given at this time.

gratifying to see most bank operating earn¬
ings throughout the country rising this year. This trend
should continue as demand for bank credit and the rates
is also

It

therefor remain firm.

the outlook for our business is: More
premiums and higher losses. The former should counter¬

,

summary,

balance the latter and leave

tions

when projected

particularly

far

as

as

of

the

.

.

Americans been able to

many

especially in the Southeastern portion

.

United

reached record levels and

ord

that, at least for the

However,

amounts.

east

which

that

with

from the

be

to

good

a

mind,

my

year

prove

costs

which

increasing
accounts

the

1956

pattern

of

almost

increasing. The demand for funds
high, and interest rates, although they

continue

well

above

that

of

banking system has not
which

it

recent

Then,

years.

yet derived

as

the full

an

the

too,

benefit

will

eventually receive from the rapidly in¬
creasing interest rates in 1956, since the replacement of
fixed

low

rate

loans

and

investments

with

higher rate

items proceeds at a slow pace.
A slowing up and eventual

leveling off of rising in¬
terest rates would bring an end to the
declining bond
prices which has been part of the money market pattern
for over two years.
This factor would moderate and
finally bring to a halt the constant depreciation in the
investment

portfolios

placing capital funds
During

ended,

the

little

the

of

banking

over

decade

a

system,

thereby

solid foundation.

on a more

since

World

War

and in long overdue

and

new

renovating, modernizing and acquir¬
efficient equipment. Many thousands

more

have most of these types of expenditures
largely behind them, at least, for a few years', and hence
should be able, going forward, to retain a
larger per¬
centage of their earnings in liquid capital funds.
now

BEN
Chairman
Union

11

Bank

nation's

1947

to

of

R.

the

MEYER

Board

Trust

&

and

Detroit.

More

rate

of

time.

The

by

This

this

community.

area's

From

manufacturing

three

was

Philadelphia,
recent

data

growth

growth

southwest

and

is

equally

have

and

spectacular.
alive

come

with

roads

transportation
are

making
Los

of

Angeles

area

Meyer

southwest

United

trade

and

manufac¬

turing center.
Insofar

as

differ from

the

banking problems

rest

are

concerned,

we

of the

country by degree only. Ac¬
capital, meeting justifiable credit
demands,
Improving operating techniques and providing
physical
facilities are common requisites for
keeping pace with
our
dynamic national economy.
Of course

quiring

new

local

our

economy has and
that increased

sensitive
and

will

continue to

to

national

and

investment policies

cordingly.

change to the extent

manufacturing activity
international

must

therefore

They also must be based

effort

to cooperate with the
Federal
its fight against
inflationary forces.
In

conclusion,

it

operations in this

seems

area

are

expansion requirements.




makes

apparent

on

markets.
be

more

Loan

planned

ac¬

a

conscientious
Reserve Board in

The

Petroleum

Industry entered the past year in fair
However, under the impetus of a colder than
normal winter, refinery runs were stepped
up to meet
the demand for burning oils.
Gasoline inventories were
abnormally high at the winter's end,
the

and

excess

in

the

coincided

In

for

burning
This

essarily

to

in

most

banking

meet current
we

trust and

further,
trade,

and

will

workers

also

The recent

ing

which

agreements

five to 11 cents
Mitchell

P.

receive

five million

creases—some

have

which

oils

the

an

hour

In

upon

labor-management

be stored at

a

met

The

of

1957

in

the

always

material

costs.

the

present

prjces
Also

crude oil—a

for

ought

there

has

of

increased

be

1101

glo
pie

since

year,

a

dei
aff

Mi<
oui

be5

New

MOORE

England

per

of

been

increase

an

a

in

substan¬

foot drilled since the

industry.

production

in

we

New

Electric

England

System

It

could

is
be

Electric

System

look

continued growth in both our gas and elec¬
In 1956 gas sales increased by 18%, a pace that
be maintained indefinitely.
However, we do ex¬

cannot

Ye

pect the volume of gas sold to
tinue

increase

to

is

and

sold

and

more

lines.

new

by

as

cus¬

sales

to

large extent

011

increases

for

old

been

aug¬

connected

come

customers

service.

our

has

for

in

customers

new

and

i

appliances

Electric
a

lio

con¬

house

more

additional

the

on

as

ex*

on

find

Industrial

running

the
new

load

at. high

the

past year is expected
high peaks. Assuming,
do, that industrial production

we

new

stay

on

high plateau in 1957,
industry should

a

Irwin

electric sales to

Commercial

uses

L.

Moore

of elec¬

tricity (stores, theatres, service establishments, etc.) have
been growing at the rate of 7 to
8% per year and we
expect this rate to continue in

re

-

ti<

domestic r

st:

1957.

labor

for

doubtful

Largest of
load where

our

increases

is

expected

in

the

new

building, added appliances and increased «
use of
electricity for labor saving, better light and more
home convenience
keep this segment of our business ris- *
ing at the rate of 10% annually (the average for the last t
three years).
This rate of increase is expected to con¬
tinue

sustained

a

wells

for

to

search

domestic

national

for

the

ever-decreasing supply

resource

defense

and

which
a

must

healthy

be

relied

industrial

In

the present emergency which
requires supplement¬
supply of crude oil for Europe, the demand
should be abnormally high until the Suez Canal is
re¬

the

use.

Domestic

demand

in

1957

is

expected

to

increase at

approximately the same rate as that of the
past year. Any increase in crude oil prices must be re¬
flected in petroleum products prices in order to maintain
a healthy
industry.

a

to

sof

to

be up 5%.

This worked against a
crude oil.
An increase

because

1957

forward

our

Milligan

economy.

for

lor

in

1957.

{

for

take

more

this

of

care

and

more

J<!

in
pi

I

To

w

re

continuously increasing demand
electricity and gas by New England

*

it
m

has

been

a

growing

tendency for certain

seg¬

industry to resort to Government agencies
industry problems. Certain politicians

solution of

have welcomed the
opportunity of intervening in a pop¬
There seems to be considerable confusion as

ular trend;

Electric's 743,000 electric and 202,000
gas customers, we
expect to spend in 1957 $40 million on our expansion
program. A sizable portion of this will be used to install
a "third "unit with a
capacity of about 150,000 kilowatts at
our Salem Harbor
steam-electric station in

st

Salem, Mass.

r<

This

of

There

ing
for

tric sales.

will
L.

K.

drilling

more

to

in 1957.

more

interests.

to reach

This emphasizes the need for
price and tax structure that will encourage the

stored

ere

maturity

more

levels

number of wells drilled.

ing

try
ahe

provide for

industry are show¬
in their collective bargaining and a
greater awareness of their common responsibilities and

as

by the results of exploratory and development
drilling
over
the past decade, in spit of the
greatly increased

upon

in¬

currently

vinced that each year both labor and

which

more

petroleum

rate

1

hai

I

uses

to

oils,

discovery and production by virtue of

healthy domestic

that

con

du]

lines

price

was

warranted

was

oui

remarkably large
number of major contracts were negotiated in 1956 for
periods of two or three years. In addition, I am con¬

load

results.

increase
in

con

he

f

price increases, follow¬

relations,

comparatively peaceful

mented

the

order

burning

by increased imports.

increase

a

an

the level of business
generally,

time of lessened

Weakening
almost

end

in

for

bef
sel<

a

industry depend to

Labor

that gasoline, nec¬

demand

wage

den

extraordinarily long
course, bear careful
watching. However, it is likely that the increasing capac¬
ity of our industry will remove some of the supply diffi¬
culties which helped push prices up recently.

come

peak

about

the

at

var

period of relative stability, will of

heating

recent years the peak
the peak of demand

means

be¬

are

increasingly important em¬
of American labor.
Many

ployers

tomers

petroleum

with

manufactured

the

absorbed

for

gasoline

more

shifted

meet

not

For many years the

demand

for

has

year.

was

months.

summer

ments of the

that

endeavoring to
same time,

At the

us

coming

Employment
notably in the

tinj

MILLIGAN

balance.

of

actual

rise

services,

For

a

the

a

Southeast

it

twe

•'

The Suez crisis has further
demonstrated the need

thereby broadening the

as

k

last general increase in price.

R.

should

continuation of

a

year.

President, The Pure Oil Company

ac¬

and

habitable and

more

of the

parts

many

[the

this

gains

IRWIN L.

L.

tial reduction in barrels found

Ben

I look forward to

these

President,

costs of

government,

facilities

greater

even

the

1

SL

both cases to meet the
demands of a rising population and
a rising level of living.

ing

R.

and

Air conditioning,
television,
districting, electrification and

Slates much
scope

center, and agriculture predicts

otherwise

tivities.
better

restraint

proper

averages.

normal

areas

resort

prudence and

All-in-all 1957's economic picture for
promises to be another record-breaker,

than

Angeles

These

industry, agricultural and
water

price

anticipated.

semi-arid

Los

as

Fidelity's own State and trade area, indus¬
trial growth promises to continue in a general atmos¬
phere of progress. Plans are already in the making for
the adding of even greater facilities that
go with a large
industrial

goods and services and
expansion of ' our industrial

in

capacity, in

some

The 1956 increase of 5V2% in over¬
all domestic demand was
higher than

metropolitan

around

well

as

have been for the production

consumer

for

In Citizens

structure

indicate

in

of Government, Business, Finance, Labor and
Agriculture.

must

is

of

arid

regions

of

James

the part

on

demand.

environs, including north, northeast
desert

creases

little slackening in

immediately ahead.

margins of profit

call for alertness

with employment and

year

it i

to the

lines, the threat
of excessive inventory accumulation, and the disturbing
influences in the Middle East and in Hungary seem to

Day.

continuing.
Certainly the momentum of industry
and population gain shows no
ap¬
preciable signs of diminishing at this

and

Reduced

me

ord

*

abl

high level, demands for credit
personal incomes at an

a

this demand in the months

demand

increase for New

average

Chicago,

industrial

added

150%.

at

Labor

power—which I believe are among the most
important factors in the economy—at all-time highs.
They have made healthy gains.
The employment in¬

As the year 1956 closed, and

all-time high, it seems there will be

products
President,

Co., Los Angeles, Calif.

largest

value

over

the

York,
this

third

1954

increased
times

continued

195
wh

chasing

industrial expan¬

nearer

we

pur¬

outpaced savings but with

•peak

According to the U. S. Department of Commerce sta¬
tistics, Los Angeles Metropolitan area by 1954 became
the

business
still

facilities.

II

banking system has invested very large
amounts of capital in expanding branch office
systems
and facilities, in those states where
permitted by law,
ing

other public

and

the

of banks

ending the

are

business and the construction of roads

savings

on

not rise much higher, should at least level off in

may
area

i!<

if

and

paid

on

C

tor

con

We

ing, should be offset by building for

Miller

P.

Lee

rise,

these services is

should

f

interest

to

static deposits should again
prevail. All types of banking services
expanding with the economy, and the income derived

from

'

continue

ere

MITCHELL

of

Secretary

fulfillment of the demand for hous-

true even in the face of oper¬

ating

are

near

the Southeast is

as

prii

sal<

P.

JAMES

HON.

The decline in residential construc¬

tion,

Thi
the

favorable political atmosphere.

a

clearly optimistic and, over¬
high level of activity should
extend through the first half of 1957

standpoint of earnings and growth in
liquid
capital funds.
This
should

Robt. G. Merrick

satisfactorily in

<

to 5

continue to perform fully

should

demands and

normal

a

the accent

is

pov

!

is

all,

eep

of removing the production of gas from the
status of a public utility. Unfortunately a very small and
overzealous segment of our industry has placed the vast
majority in a bad light/ The need for remedial legisla¬
tion has been recognized by the President, and we hope
that Congress will pass a natural gas bill that will pro¬
vide proper incentives for more intensive development
of this needed and convenient source of energy.

sion.

indicate,

1957 should

!

%._<

future, the
business point of view of the South¬

sibly throughout the entire new year.
Insofar as the banking system is
concerned, there are certain factors

T

industry is greatly in need of a solution to the

The

problem

goods were

Using the facts and trends of 1956
as
a
measuring stick, I feel certain

will continue well into 1957 and pos¬

"

tention.

produced and purchased in near rec¬

lieve that the business pattern of 1956

;

have

vocal

personal income

and

employment

barring events
not. apparent at this time, I am in¬
clined to agree with those who be¬

longer.

or

constitutes the public interest. So far the most
been the ones to .receive the greatest at¬

to what

States., Here,-it was a year in which

year

a

so

1957

vital petroleum industry has demonstrated
in each national emergency its ability to cope with ab¬

much of the good things of life as they have

so

during 1956

I have never believed that any man is endowed by
nature, or equipped by study, with the tools or ability
to! foresee the future with any reasonable degree of

have

before

Never

enjoy

Thursday, January 17,

.

A free and

Louisville, Ky.

MERRICK

G.

MILLER

P.

President, Citizens Fidelity Bank and Trust Company

year.

President, The Equitable Trust Co., Baltimore, Md.

accuracy,

LEE

reasonable profit if condi¬

a

prevailing continue through the

now

ROBERT
•

judgment in

hope that the defensive aspects of prudent

95

Financial Chronicle .:

Commercial and

1958

tl

new

Salem

unit—expected

to be

—represents

a
significant addition
steam-electric generating
capacity to

In

addition

to

major

continuing expansion

of

construction
our

as

well

as

of

electric and
the

efficient

highly

our

projects,
and

there is
distribu¬

increasing demands

of our

present

All in all, we
expect a continuation in 1957 of the gen¬
erally good business we enjoyed in territories served by
our System in
1956.
Total revenues are
at

currently fore¬

8%

above

expenses which

1956.

After

o:

P
ai

gas—to serve new cus¬

customers.

cast

rr

3i

System.

transmission

tion facilities—both
tomers

the line in

on

ir
tt

allowing

for

a:

ir
tl
©:
n
o

increased

are also
expected, we estimate 1957 net
for New England Electric
should be about 5% above 1956.

V

Number 5604

185

Volume

. . .

The Commercial ami Financial

R. W. MOORE

;

Chronicle

Me need

President, Canada Dry Ginger Ale, Inc.1

^

(293)

procedure which will result in (a) increasing
pay for the steadily rising employment
(b) .increasing the return to our investors so we
can
attract new capital to the industry, andi (c) main¬
taining a reasonable price structureWhich will .not dis¬
a

thinking, foresight, intelligent planning, and

productivity to

The year ahead holds every promise of being an ex¬
ceptionally good one for the soft drink industry. This
is due in part to the fact that consumer purchasing

record high, and that consumers
to spend for the products they want.
This readiness has, in turn, enabled
the industry to adopt more realistic
pricing to aid in offsetting the in¬
creased cost of operations.

nower

is at a

courage

are willing

I

Jones

ing

which will operate in its favor during the year
is the steady population growth, which

One

creates new consumers for our products at an accelerat¬

ing rate. The second is the steady expansion of the
foreign market, through licensed bottlers operating in
foreign countries. The universality of appeal of American
soft drinks is a proven fact. It may sound trite but it is

virtually

Along with most other businesses

every

person

on

the

We have
for continued and profitable growth.

an

just concluded negotiations with the Rotary

$415

business

generally will be good
during the- coming year. The momentum of economic
development - and prosperity should continue, unless
affected more than now appears likely by events in the
Middle East and Europe. We at Canada Dry are making
plans

estimated

is

force

increase

in

stock

more

Laughlin shareholders with respect

the

number

at the J&L

authorized

of

shares

at

closing

date

of

annual meeting

this

transaction

would

ance

at

our

capacity to

Division,
Supply Division, and our Container Division.
We
have increased and improved our raw material reserves
are

pursuing
-

:

-

active
'

explorations for

fact

are

an

the insur¬
proud of it, but
we
are only
too
that

still

as

far

Clarence

nation

a

from

J.

Myers

ade¬

production of goods and services, or to put it in another
way, the average family has insurance coverage equiv¬
alent to less than a year and a half of income after taxes.
other businesses, the

immediate outlook for. life
considerable extent upon the
economy as a whole.
We at the New
York Life expect 1957 to be another prosperous year
in which the exceptionally large capital additions of
the recent past will be reflected in increased output,
Like

our

v.-

are

is

force

quately insured. The insurance in force in U. S.; life
companies today is almost exactly equal to one year's

make

have expanded the activities of our Warehouse

we

the

of

Americans

bars, and wire and wire products.
We have added new
products—galvanized sheets and hot extruded bars. We

bodies.

And,

in

We

time

same

aware

sheet and strip, tin plate, tubular products, cold finished

and

total.

business

the

in

insurance

of

impressive

wire products, by the installation of flat rolled fa¬
cilities at the Detroit plant of Rotary for the production
of stainless steel sheets.
■
/;

materially increased

106
com¬

billion

fifteen

and

hundred

Four

and

have

approximately

are

than $20 million per day.

dollars

and their conversion into hot rolled and cold drawn bars

We

of the year-end, and

as

now

finally, assets are estimated at $96
billion, an increase of nearly $6
billion during the year.

of

in April,
be,
therefore, the last week in April, 1957. It is our inten¬
tion to supplement the current operations of Rotary,
which involve the melting of stainless and alloy steels
The

billion

holders

insurance
outlook

new: ore
■

■"We have greatly expanded our work

in Research and
Development, in Engineering, and in Personnel Recruit¬
ment and Training.
Jones & Laughlin is in a highly competitive industry;
we would not have it otherwise, because competition is
the essential stimulant for industrial progress. We are

and

state

is

deluding ourselves into believing that the improve¬
of our earnings and financial stability will come

if

a

income for most American families.

municipal improvements,

expenditures is almost

corporate fixed

even

to

the

great need for new schools, roads and other

a

and

defense
to

depends

for

increased real

There

ment

our

.

in

sura nee

Our

common

plenty of room

belief that

en¬

Benefit payments to policy¬
amounted to $71/f> billion—

not

our

-

billion, about $7 billion above the record volume posted
U. S. companies in 1955. In-

by

panies.

globe is a potential customer for our product.
It Js

life insurance

joyed another substantial year in 1956.
Preliminary
figures indicate that sales of new insurance totaled $55

policyholders of U. S.

3 957.

be cited, which regularly
have contributed to the growth of the beverage indus¬

that

MYERS

million

our

R. W. Moore

the

nonetheless -true

it has solved other dif¬

as

J.

there

to

Two additional factors may

-fa

CLARENCE

President, New York Life Insurance Company

year.

tion of the Jones &

industry, but also its determination to
combat outside competition for the refreshment dollar.

m

be

negotiations provide for the acquisition of
Rotary's assets and the assumption of its liabilities sub¬
ject to the approval of the Rotary shareholders at their
annual meeting in March, 1957, and the affirmative ac¬

its continuing vitality by upset¬
ting long-established
traditions in package size and
variety of product.
With the stimulus of consumer
demand for variety, bottlers are diversifying as never
before, by introducing king size packages and a wider
selection of flavors.
This trend can be expected to
continue in the year ahead. In a field as competitive as
ours, such innovations demonstrate not only the essential

7.

will

industry

high de¬

a

1957 as a year of great accomplishments
industry, and for Jones & Laughlin.
,

basis.

has demonstrated

ahead.

the

97

prepared to provide all these.

are

Electric Steel Company of Detroit which will permit us
to enter the stainless steel business on a
highly desirable

industry in the past year or

try, and

look-to

the steel

,

that

&

We have

able to establish increased
sales despite the fact that the sum¬
mer was one of the coolest on rec¬
ord. It is natural to expect that the
coming summer will be more favor¬
able for the beverage industry. Thus
it is safe to forecast that a new high
in sales will be recorded this year.

of

-We

for

Laughlin proposes to proceed vigorously on
the basis of its optimistic view of
prospects for the com¬

whole was

health

'

products.

problems
problems in the past.

ficult

Coupled with these favorable fac¬
tors is the prospect of better summer
weather than was experienced in
1956. Last year the industry on the

two

our

expectation

every

able to solve these

V

This

of

users

have

We

gree of teamwork.

costs,

-

the

sure

and

to

capital will remain at

substantial

increases

about automatically, and without effort on our part. We
know it will take hard work, vigorous and imaginative

:

of

increase in

an

Additions

occur.

last

Continued

a

high level

year

are

on

page

not

98

this basis, and expect that 1957 will be the

on

best year in our

history.
BEN

MOREELL

Chairman of the Board, .Tones & Laughlin
Steel Corporation

Jones &

Year well advanced
SvJ

Corporation began the New

Laughlin Steel
on

a

stepped-up cost-reduction and

expansion program which is scheduled to cost $320 mil¬
lion

during

the

period from Jan. 1, 1956,
31, 1958.
Our 1957 program will achieve the
following objectives:

three-year
through

.

,,

RHODE ISLAND HOSPITAL TRUST COMPANY
r*»

Dec.

'•

Member Federal Reserve System

(1) Jones & Laughlin will become
first completely integrated steel

company

United States to
revolutionary new

in. the

oxygen-blown converter process.
to

(2) We will be the first producer
process steel by means of com¬

pletely automatic rolling equipment.
(3) Over the period from Jan. 1,
1946 to Dec. 31, 1957, we will have
achieved an increase of 55% in our
ingot production capacity.

(4) We will have brought into pro-

duction

Ben Mnrooii

and

a marked improvement in our
tion in the steel
industry.

over

the

which will
competitive posi¬

facilities

result in

Developments

semi-finishing

new

many

finishing

past five

RESOURCES

U. S. Government

Obligations
Obligations of U. S. Government Agencies
State and Municipal Obligations .
Other Bonds

ahead

indication that

as

not

we

Stock of Federal Reserve Bank

15,551,302.65
609,378.28

.

618,600.00

.

414,086.31

Other Stocks
Loans and Discounts

.

..•••

.•

Banking Houses
.
.
.
.
Customers' Liability on Acceptances

.

.

.

of the

prudent

see

can

in

1957

there

is every

Because of unsettled
to

try to

look ahead

more

than six

months.
steel
m

82,763,426.93
2,126,500.00

147,721,314.90
3,150,000.00
81,845.06
924,189.67

have demon¬

industry will produce steel at an un¬
world conditions,

the

precedented rate.
is

.

.

$315,207,220.0(6

"growth

As far

it

.

.

.

industry." And Jones & Laughlin's
record over the same
period justifies the assertion that
J&L is a
"growth company" in this growth industry.
a

$ 61,246,576.26

Cash and Due from Banks

Other Assets

years

strated conclusively that "Steel" is in every sense
word

Federal Deposit Insurance Corporation

Statement December 31, 1956

the

make steel by the

•

However, under any probable conditions the
industry should approach full capacity operations
1957, and Jones & Laughlin should get its share of

this business.

'

In recent
months there have been many
regard to the need for

statements in

expanding the steel industry over

the next

ten years.

There appears to be

LIABILITIES
*

*

•

$ 6,000,000.00

12,000,000.00
2,620,000.00

Undivided Profits

Deposits
Deposits

■

.

.

Capital
•
•
Surplus
.
Guaranty Fund

.

.

.

.

2,844,432.09

281,757,164.91

....

on

Acceptances

Securities Loaned
.

Other Liabilities

$ 23,464,432.09

5,200,000.00
81,845.06
4,703,778.00

.

general agree¬

W5,207,220.06

ment that

we must add to existing capacity approximately
million ingot tons of annual capacity, or an average
3V2 million tons per year.
The industry has been
Properly concerned over the difficulty of financing such

35
°t

an

United States

Government

Obligations and Other Securities carried at

exPansion because, as time goes on, it becomes more
and more
difficult to obtain increased capacity by "round¬

$17,920,939.68 in the above statement are pledged to

ing out"

powers, to secure

the new

existing facilities. This means that the cost of
capacity will increase sharply not only because

°f the
need for
now
on

building so-called "grass root"
also because of the effect of

locations, but

construction

costs. '

industry is working

We realize

that

we

must


http://fraser.stlouisfed.org/
*d
Federal Reserve Bank of St. Louis

plants at
inflation

...

.

on

this problem

arrive at a

intensively.

realistic solution.

qualify for fiduciary
public monies as required by law, and for other purposes.

Head Office: 15 Westminster Street, Providence, R. I.

y

©8

Continued
equalled.
ence

ness

of course,

outlook.

still

there

far

is

with

its

influ¬

obvious

activity, has shown

signs

trol

equipment

sales

its

peak

that

cross-currents

upward

is

of

clear

no

1955.

off.

in

But

insurance

Y-.il

in

ance

with

prevail
1957

most

feeling

in

spite

an

the

of

effects

the

higher

interest

decline

a

deposit

by

amount

of

proceeds

This

generated

On

the

available

return has

ings.

the

beneficiaries.
money

investments.

invest

in

hand,

at

its effect upon

Should this trend,

somewhat

by the

other

funds

policies

of

reduces

the

families to

many

J.

P.

increase

their

continuance of its program

a

are

heavier

building of 2)000
Cost of

cars.

con¬

rail and

new

classification

coverage.

yard

handling 3,000
finished

NEFF

in

at

cars

the

President, Missouri Pacific Railroad Company

In

the

fact

that

in

early

the

the

year

to the
i''!'

a

opera¬

general conditions in the
country there is nothing to indicate
on

that the

1956

there

were

an

estimated

located

We

capital

investment

of

$180,500,000 and 171 old industries
expanded with an estimated capital

with

one

to

appears

be

evidence of
throughout the new

tinuing

every

But while the general

stable, the agricultural

•"

F

'

I

Neff

J.

year.
scene

The

wheat

adverse effect

in

crop

Mo.

Pac.

on

Chairman

territory

was

New

just about normal in 1956 but may be less in 1957 because
curtailment in planting under government con¬
trol plans.
" x
1
l'\
strikes

in

the

steel,

chemical

number of

same

handled in

cars

1955.

From

all

railroads,

higher

wages

and

material

.

costs

Since the railroad emerged from

.

.

subsidiaries when

will

begin to show in

will

exceed

From

1957.
a

We

year.

physical

a

in its

Among

improvements

The
own

Mo.

also

savings

60,000

is]

Pacific

outstanding

modernizations

"

in

of

1956,

.are

......

operation

Mo. Pac. will
For

a

only

trailer service.

the truck

body

Under
or

this

container

gondola

soon

or other
type of flat bottom
have available 200
containers and

inter-line

.

advance¬

in

car.

100

traffic

between the North-East
Southwest through the St.
Louis gateway Mo. Pac.
engages in the conventional
"piggy-back" style of oper¬
ation by
handling trailers on flat cars.

(b)

Construction
in

of

Arkansas

approximately
to

transport

western Arkansas and
eastern

plant at Pine Bluff.




Mo.

Pac.

10

miles

wood

Oklahoma, to
s

of

new

chips

from

a new

paper

10-mile extension

Financial
have

been

office

floors

ft.

sq;

in

No

the

in

from

of

such

also

site

76

at

with

Broad

an.eni

Street

The Noyes
organization

a

a

60,000 sq. ft. and tower units of
15,0
floors have ever been offered bel'o.

Downtown

Financial

District

and

particular!

building offering superior service, with electroni,
elevators, air-conditioning and a wonderful exposur
wijth uninterrupted views of the harbor, the
bay am
a

the

ocean.

Third: The

Battery Park Redevelopment.

was

*

harbor, a garden apart
parking and many other conveniences ail
improvements for those downtown tenants in the middl
with

ment

income

.The

bracket

location

center

the

of

Fourth:

who

is

desire

to

superb with

be

The

almost

unbelievable

but

much

all

as

of

the

new

year.

downt.ouj

'

W.

v

•,

NYROP

President, Northwest Orient Airlines, Inc.
Orient

t..e

Airlines

and

the

civil

air

transpoij

for 1957 encouraging, -ML
because the general business outlook is

because

prospects

travelers

pro.misir|

taking

are

to

the

air

evef

in

growing numbers.
Domestic
in

1956

airline

miles

revenue

vast

passenger

proportion

.

nc

—

of

arly

miles

passenger

billion

revenue

over

1955,
while'
declined only 871 mil¬

surface travel

lion

traffic

passenger

increased 2.7

,

2

miles.

the

Thus

airline

billion

in¬

revenue

constituted

—

<4

new

>

travel.

*1,200,-

The

devell
electroiJ
seven tinil

with

produced

space

stat

Distil

to

program

space,

10 years.

DONALD

crease

a

correct

elevators and air-conditioning, which equals
as

tj

right in

the Downtown

ft. of superior office

sq.

Street

plot.

building

6,000,000

businef

their

near

Broad

ment that 1957 is the year when
will actually commence a

a

our

fi\{

Briefly,

size facing the bay and

111

acres

passenger

and

of

This

public
of

travel

growing

travel

favorable

is

to

one

1957,

company and our industry.
national economy continues at

prosperity

level,

and there is

conducive

of 73,000 sq. ft. with

air

on

factors

and

our

The

cover

growth

reliance

several

in

Chase

Exchange site will

an

to

earnings

are

high,

attitude of confidence

spending

rather

Donald

W.

Nyro;

than

retrenchment.

Broadway and

is

it

of

entrance

serve

the

building

ft.

each

can

offer

be

F. Noyes

individual

sub-divisions

Broadway

again

It
Charles

Financial

doubtful,if

between

ever

76

at

will

and

extremely

Wall

down

assembled

to

other

any

and

floors

Pearl
for

of

15,000

.

|

-

Street

office

of

build¬

10 to

years ago say
two floors of 10,000 .sq. ft. each or
20,000 sq. ft. and today have
expanded and now occupy
60,0.00 sq. ft on various floors and often in outside build¬

Here in this building such

entire organization

on

one

a

tenant

floor and

even

can

ex¬

.

•

1 predict that all the space in the larger floor build¬
ings to be produced downtown will rent

As

move

all

of

a

of

who

of

modern

elevators

with
and

design,
the

approved

modern

real

floor

con¬

air-conditioning

Some of these tenants

return.

Another most important downtown
situation for
will be the

by

to

layouts

electronically

effective

could not be obtained
downtown.

will

were

their

particularly

trolled

tenants

A

organization, and in a few cases
organization, uptown did so only because

their

buildings
and

downtown

part

promptly.
compelled

new

the East

housing development

River, Whitehall

Coenties Slip,

a

plot of five

on

the site bounded

Street, Water Street

acres

now

1957

and

largely improved

that

the

of th
$412 billion, compared with tt
1956

gross

65.5

the

nation

increase

of

Passenger
crease

of

a

year ago.

advances, the air transport industry1,

12.3%

over

revenues

12.7%

363,578,0C0.

product

million persons are enf;

keeping in step. Scheduled airlines
during 1956 carried more than
about

were

over

the

$1,537,000,000,

previous

year's

On

continue during

its part,
Northwest Orient

15% in its

own

carried—1,430,000
operating

1957, bringing ncv

over

the records set

all-time high in

with

1,343,000 in

$76,988,000,

an

i

passenSel|
1955: an®
of $5.

increase

the previous
year.

over

and

an

compared

revenues,

During 1957
DC-7C

t\

tit'l

from

Airlines expects a

business

1956. These totals
included

740,000

14.1%

records.

of about

in

iM

an

total of $h

Revenue passenger miles flown reached

Increases should
all-time

Stat-f

United

of the

47,000,000 passengers, f
the 41,663,000 carried in 19h

astronomical total of
27,760,992,000— up
previous year's
24,339,695,000.

<

number 'of

estimated

ployed, compared with 64 million

place the

allow for

pansion.

is

United States will total
$391 billion in 1955. Some

location

Some of these organizations
occupied

15

ings.
.

to

This

10 years.

and

railroad

we

ing construction. This building will be managed
by the
Noyes Organization.
It will appeal to large
organizationsAvho have developed
rapidly during the last five
or

Missouri

the

years*

ultimate

The year 1956

imposing

sq.

it.

sq.

-

the

Exchange

and

waiting list for spafl
—hi the building, which willl be able to offer
individu

Lower

"...

Street

District.

bankruptcy

these

For

this

accomplishment

excess

an

Broad

Pac.

inauguration of TruckrRail. Service.
.Locally
and "texas-Pacific
territory Mo. Pac. provides

shipped in

chassis.

estimate

particularly

justified.
saw

the culmination

see

plot in

Produce

Broadway

agents for this building and have

but

development
has
been
publicized. The building on

this size
of

from

overwhelming«faith in

our„

its main entrance at 2

.

and

.shippers with demountable
method

•

standpoint

condition.

following:

(a)

is

emerged

2

'

•

excellent

ments,

$1,000,000

it

wonderful
at

are

building on the present
Produce Exchange site will be the
two
important office building de¬

a

of

plannel

a

"

the Financial District.

serve

ft.

sq.

south

Savings resulting from the consolidation
23

000

widely

$1,700,000.

the

will

great

the Produce

1, 1956, there has been a reduction in funded debt
(ex¬
cluding equipment obligations) of almost $39^
million,
resulting in a reduction in anniial fixed charges of almost

and

the

trance

only

Manhattan

March

on

been

velopments of the

.

trusteeship

Noyes Co., Inc.

The Chase Manhattan Bank devel¬

.

of

Second: An "office building of
enlarged proportion
(probably 1,20.0,000 sq. ft. of rentable area) to be
erecte

industry find

t

of

development

construe!

improvements.

Northwest

NOYES

Charles F.

opment and the erection of

$350,000,000 rehabilitation program since World War
II,
we expect to have a
corporate surplus for the year after
the mandatory capital and
sinking" fund appropriation of
about $9,000,000.
,

F.

estate ;and

predictions.

added to Mo. Pac.'s operating
expenses in
1956,
through efficiencies in operation due to Mo. Pac.'s

.

and

rev¬

have
but

has

1957

Total

Like

real

those who

one

1956 has. been somewhat better than
operating revenues are expected to reach
about $306,000,000 as compared with
just a shade over
$300,000,000 in the preceding year-.
1955.

Board,

that

future and value.

and

a

York

District

standpoint

enue

tion

during the preceding

7

pride that I and the Noyes organization

realize

among

aluminum industries, which had a
depressing effect on
freight carloadings, Mo. Pac. closed the year with about
the

to

World."-

greatest building and the creation

to

the

of

It is with

able

a

V*

CHARLES

crop

that

Broad

banking center that is unequalled, with an
investment 1
close to $125,000,000 and a nearby additional
investmenl
of probably, the same amount
involving new

continues to be

of crop

Notwithstanding

changing economic conditions.

economy

an

world's

compete with other forms of trans¬
portation, the rail industry will be able to render the
public a better service at lower costs.

has been spotty. Many
sections in normally heavy agricultural
producing states
in the area served by Missouri Pacific have been visited

production.
IF

P.

price their product to immediately

can

Given freedom

con¬

industrial

by droughts which have had

•'

meet

healthy

a

own

that railroads

so

investment of $253,952,000. The pat¬
tern of industrial expansion in the
southwest

-

are

their

1

inC01t|
StreJ
will be
cover!
of the
importj
middle

•!

referring to the need of selling the
publi^,. in
interest, on modernizing the national transrportation policy. The "horse-and-buggy days" shackles
imposed on railroads when they enjoyed a virtual trans¬
portation monopoly must be removed by the Congress

the Mis¬

on

Missouri

railroad managers.

industries with

new

by

between continually rising costs of
supplies- and taxes, and slow rising

materials,

the

great.

First: The Chase Manhattan Bank

during each 24-hour period. ^When,
three years, at a cost of approxi¬
handling will be reduced 50%.

tion, and this subject has the constant attention of rail¬
officers, but fair minded students of transportation
readily admit that a large and important share-of the
railroad problem is beyond the immediate solution of

same

souri Pacific 257

capable- of

Mo.,

road

good conditions which
made 1956 a successful year for Mis¬
souri Pacific will not prevail during
1957.
During the first 11 months of

'.ri!

City,

Management of any industry must always be alert
to the need for economies
through more efficient opera¬

owners.

Based

balance

proper

of the four blocks

center

of the* Financial

"Heart

on

car

revenues.

by

very

"

$21,000,000.

^opinion the big problem faced

our

wages,

company

emerged from its long period of trusteeship and
tion of the property
was
returned

.

'*

next

demand

description
projects scheduled for 1957 in downtown Manhattan

air_.siide

100

Pacific and all other railroads today is how to maintain

The year 1956 has been a good one for the Missouri
Pacific Lines for a number of reasons, not the least of
is

Kansas

the

Here, in capsule form, is

Another large item on the 1957 program is the starting
construction
o,f a
new
electronically-equipped hump

mately $11,500,000,

which

builders

cars:

new

a

'in

views

.fleet through the

car

car

that

but

for apartments will- be

is at the

in its DeSoto, Mo. plant, and

more cars

h\
wil

exposures

this will be featured because the

case

question
group

;

of laying 130 miles of

rail; adding to its freight

purchasing from commercial

tinue, it should in time make a real contribution toward
reducing the cost of life insurance to the public*and
encourage

and

j:ai;lv

perfect

is

of

115 miles

132-lb.
of new

of

144 miles

will have

that tenants

result

property will be unsurpassed.
The site is
supd
for the development to be undertaken and
there

„

earn¬

the present level

even

miles

29

approximate

is

the

Major Missouri Pacific improvemehts planned for 1957

attractive

life insurance company

or

of

rail—total,

J

practical

where

allocated to the
buildings
80% of the ground is beautifully
landscaped

in this

125

on

companies for new
the opportunity to

increasingly

an

left

50-4oh ca¬

cars

LCL

has proved to be a not qnmixed blessing, as the attrac¬
tiveness of the current11 rates on senior securities has
caused

box

new

cation, expansion of radio base stations, installation, of
car
checking system at freight houses WalkieTaIkies, .etc.
Y\
7
• '■*

This

rates.

1950

(g) Continuation of Mo.^Pac.'s program oL equipping
all locomotives and cabooses with tram radio communi¬

insurance

life

economy,

of

new

the-ground

of

the

Proposals have
been

propositions

housing

other

Jl)%
about

trains-resulting from complete dieselization of railroad.

-

of

"

Extension of sidings .at approximately 30 points
' and 150 par capacity to accommodate, longer

-(f)
to

excellent year for;life
substantial increases in insur¬

segments

Laying

115-lb.

circum¬

Under? the

car

(e)

high level of busi¬

a

1957.

to be

further

force.

Like

is

will

expect

we

operations under C. T. C. control.,
Worthy Texas.

flat cars of 70-ton capacity at Mo.
building plants.
"
7* *

and 50

Pac.'s

and

.

activity

ness

stances

Construction

(d)

pacity

And

of plant

trend

tapering
believe

we

shown

preformance

the

expenditures

have

which
all

This places

Louis and Forth

St.

between

Residential construction

traffic con¬

^

hv ihp
1
by the Citv in connection with this
City in connection with this
developnui
will probably be along the lines of

ceived
•

Thursday, January
17^

...

mediocre buildings.

with very-

similar extension
Railroad.

a

between

Mo. Pac.-Texas Pacific

upward trend.

below

with

connect

Installation of 39 miles of centralized
Holland and Bald Knob, Ark.

(c)

of

uncertainties in the busi¬

some

Automobile
an

evidence

of these

spending,

business

will

Ark.

being built by the DeQueen & Eastern

in recent weeks.

are,

indication of

is

Nashville,

97

page

Consumer

up

There

j

from

over-all

on

picking
;-v-;

and Financial Chronicle

The Commercial

(294)

we

seven

will add to
new

our

Douglas

fleet eight new
DC-6B

Dougla
whic'

aircraft,

will

substantially increase our available seat miles. N*11
additional aircraft will be
added in early 1958.
Altogether,

1957 promises to be
another year of

pi ogress lor this

a^8

dynamic industry.

Continued

on

pacje

^

Number 5G04

185

Volume

. ,

The Commercial and Financial

;

<295)

Chronicle

later life.

ing)

its

Then there is the constant spectre

Every person needs more
now
or
later.
Sell these

of

and

Securities Salesman's Corner

benefits

By JOHN BUTTON

it

other

-

(CONCLUDED)
million individual investors, and

a

listed 10 of 20 ob-r

Last week we

countless

'heard by Mutual- Fundsalesmen
and suggested - some
answers of our own. .The list of
objections was compiled by Mod-;
ern Security
Services,., edited by
"Ferd Nauheim and published by
Kalb, Voorhis and Co., members
: of the New York Stock Exchnnge.
jections

institutions.

build

to

confidence

idea

and

little

it

-

likely cannot be done quick¬

very

•

ly- but only-after
views

and

several
time.

some

where

^complete service
offered to securities dealers in¬
terested in merchandising Mutual
Funds and / it offers worthwhile
advertising and ? sales- suggestions
in this field.. Here are the - final
10 of the MSS objections with
is a

MSS

of

some

suggested

and invest larger

versities,

(11) I'm putting

leave

much

financially;

ago

ment

chasing power.
well

ble

Funds

pur¬

sent

10

or

15

day's

so

that

you

will

have

on

in a

(17)

of securities which repre¬
of the most outstand¬

a

some

Funds are not a stock but a

tual

sir, not for

to my

I

me,

■-

■': >. r

tion.'

1

safeguard.'

mention, trusteeship of as¬
sets, supervision by experienced
investment managers,
broad di¬
versification of assets, and that
vested

in

Mutual

Funds

now

are

we

EVER

go¬

in-*

by over

will

come

date

HIGHER

in

handy at
whether
we

if a systematic savings
is temporarily halted.

penalty

plan

(18)

I'd rather plough back my

surplus income into my own

busi¬

ness.

.

"This is certainly a

worthwhile
it is vital

idea Mr. Prospect and if

well

as

lived

to
then.

inflation

have

$11,000
you

as

and
our

a

dollar.

year

At 2%.

it would
while for
you to save $220,000 .but that is
the amount you would need in
order to provide an income of
$11,000 a year invested at 5%.
Possibly you can do this but it is

compounded annually
probably take quite a

1

would

billions^ of dollars are'"

live

High 7 taxes
done this to

Federal statute and that the Mu¬
tual Funds' are
hedged
in - by
conceivable

SOARING

quite an order.

Dollars are shrink-

managed
this and
make it a part of the growing
assets of your business."
Stress
loan .values,
also the factor of
diversification
that
lies
behind
such an investment. Explore this
wish

;to

set

up

a

questions.
The
sounds like an excuse
ask

thoroughly,

objection

than

rather

the

serious

a

statement

This prospect does not see

of fact.

need

yet

nor

does he under

¬

An exploration of

plans for the future, for re¬
tirement estate building, would be

his

R

I

G

D

E

G

N

my

Filling, Land Reclamation,
Canals and Port Works
and Ship

/

iVe

are

-

equipped

to

all kinds of

execute

Contractors

to

the

Longest

is

dredging, reclama-

Government

Corporate

capital,

i

:
.

one—it

income

or

Co.

Cable Address




Dredging," New

an

:" ■-

,

super-tankers are being

already 'impressive fleet. To

Tidewater's

bring its hew and improved products
of

hundreds
The

result

economic

is

new

a

might

service

big

of

stations

to a waiting public,
been opened.

have

contribution to the industrial and
the

nation.,.and

the free

world.

understand his "needs."
excuse.

to

Try for an ap¬

discuss

capital,

more

more

in¬

of

his

do

that

a

opportunity*,faj*
Unless you cah

there is no use

back in six

months,

to come

or ever.

2,

York T

A Reflnery,fTo fully utilize its
new

for

Every man has

the problem of

.

BArclay 7-8370

inThe effort to meet new needs is

capacity,

to

industry.

Company's great new 130,000 barrel-a-

day Delaware Flymg

delivered

challenge

means

sound in¬
vestment
program.
People buy
benefits—this man must be made

TEXAS
"Citizens State Bank Bldg.
CApitol 4-609,1

large

enormous

a

Maybe in six months.

Does not

conscious

HOUSTON

Looming

Tidewater Oil

Here's

obligation for all the petroleum

now or
to sell Mu¬
tual Funds until I had this man
conscious of his "needs,"

come,

Experience

for 1957...an

I wouldn't try

pointment

Everywhere

'
*

world that turns on

too

This is

and Private

Atlantic, Gulf and Pacific
15 Park Row

a

interested.
old

an

bettering himself.

NEW YORK 38, N. Y.

run

engines.

preoccupied with other
things and I want to,get rid of
you.
I'd try to make an appoint¬
ment for another time to discuss
estate building and creating more
I'm

(20)
>

.

not

I'm

later.

the United States

Federal

Correspondence invited front
Interests

Deep Waterways

Channels

work anywhere in

tion and port

fuel to

combustion

path here.

(19)
This

^iver and Harbor Improvements,

oil... more

internal

well

investment fund such as

stand benefits.

D

More

.

require

now

quickly..

would suggest

every

advan¬

1939

In

come

T
that-today our financial markets are regulated by
around

individual

of

thought to 'the success of your business
aspect of your situa¬ that you invest all your surplus
if you had an in-' in your own business by all means
of $5,000 a year it would do it. However, possibly you might

about. this

prospect needs education.
L doubt if. any/pat answer will

him

ad¬

are

depression or not." Enu¬
needs, show benefits. No

a

merate

wondering

This

bring

a

but

Mutual Funds

I think

future

have

your money but I'm
whether or not you have

re¬

crash did

father.

are

I could put aside $25

but

now

some

method of investing.

a

-.

No

there

Enumerate

Yes.

month

save

,

(12)

Funds

tages.)

(14) What
for?
I'm
getting
(Build up along all right without taking
the danger of a one policy in- > chances with my money and when
vestment
plan based solely on I retire I'll have my social se¬
dollar assets.)
Then suggest -Mu¬ curity. ;
7/'
. 7
; • 7
... 7,.
tual Funds along with Endowment
"Mr. Prospect, I ''am sure you
plan.
V
/ don't want to take chances with
member what the 1929

in

millions

by

today

investors.

retire?"

to

ready

invested

dollars

problem still unsolved when you
are

hand

other

the

have

people

of investment

ing that cannot be duplicated in
any
other form of investment.
That is why there are billions of

the

interest

for peo¬

are

vantages for the investor of mod¬
est means in Mutual Fund invest¬

in¬

of

Mutual

that

superior form

NEED—then sell BENEFITS. Mu¬

from now to¬
may
continue to

dollars

be

is

Here

in the ing to have a depression.
"I sincerely hope not Mr. Pros¬
country. Take it from there, but
only after you have built up pect, but certainly the money you

years

shink

must

an

of¬

ing business organizations

using only this endow¬
insurance
plan
that you

might continue to save 'and save
and

provide,

group

I'm sure you are
Isn't it possi¬

that

ment

cross

a

su¬

investors

Funds.

wealthy

"Many
found

country's* growing business insti¬
tutions.
That
is
what
Mutual

of this.

aware

in

Mutual

Mutual Funds

(16)

semi¬

section

assets

years

vested

Mutual

in

ple of wealth.

You can't save enough.
to save for the retire¬

order

In

to¬

list, etc."

a

only

he has

compounded

when

annually.

were putting 100
into this endowment

cents- in

for

(providing

you

funds, and hun¬
wealthy individ¬

these large

which

hold

conscious

made

Fund

fered, and the outstanding records
of investment accomplishment all
attest to the ever increasing re¬

the

to

Mutual

place

convenience, the
management facilities

gard

been

not

even

you

worth 50

thing

shrinking dollars and high taxes.
No one with an average income
can
retire on such interest rates

yours.

only be

3%

a

Today if you were to
take out these dollars they would

of

of

show him how inadequate
return isr today because of

First,

that

wondering if you have thoroughly
taken care of the problem.
Ten
cent dollars

kind

a

are

The

perior

savings account and insurance).

a

today's high taxes and constantly
increasing costs of living. But I'm

years

any thins
market -and
1

stock

Funds

invested

have

Funds,

shortcomings of his present

of the

with

along

*

position

be inde¬
at least as

possible

as

so

uals

^

again, the prospect is un¬

an

has

he

hope some day to

pendent

very

of

incorrect impression. Also,

Here
der

all my money

well aware, Mr. Prospect,

you

sums—especially

people who do,,

"Certainly, this shows that you
are

that

answers.

insurance > endowment.

life

a

I

the

the

story in a nutshell.

tion, the growing might of indus¬

the

that

but here is

trust

dreds

on

don't r know

f (13)
about

,

That's

ment.

diversifica¬

do

job of managing the invest¬

an

con¬

he obtains better income.

if
.

Possibly you can come up with
some better answers of your own.

in

has ' gained

fidence he may.fake the initiative

very

our >>

client

the

the

management

competent

Let

inter¬

corporations,.

great

outstanding job. The
larger investors such as insurance
companies, many hospitals, uni¬

investment to get started is some¬
after

for

are

-surprised

up

day doing

•

times indicated and then later

things

these

in

est

Funds.

Mutual

Mutual

the

small

A

not

am

brought this

inter¬

income

objections will become
for buying. Sell conveni¬

sound planning,

plan for sys¬

fellows.

"I

.

behind

trial America, and a

tematic accumulation of an

needs

age

your

ence,

save

Mutual Funds

retirement

reasons

far-sighted

using to

now

(15)

•«

have

You
here

are

the

Objections and Evasions Heard By
Mutual Fund Salesmen

degree.

individ¬
toward
their retirement goal is worth in¬
vestigating?
Let us see what a
better
way
can
do if \ we only
give it a chance." Their explain

many

uals

20

limited

a

increasing living costs.
possible that the plan

ever

Isn't

to

of

in

Every person
income.

ing and social security is only a
stop gap at best athoug'h it has

99

providing for his family now, and
for himself and his wife (if liv¬

TIDEWATER OIL COMPANY
SAN

FRANCISCO

•

HOUSTON

•

TULSA • NEW YORK

100

The

(296)

Continued

from

page

ROBERT

Investment Company

sailing for

economic

for clear

the

nation

during at least the first six months of 1957 can be fore¬
seen by observing the continuing
rise in gross national
product and consumer disposable income during the last
quarter of 1956. With more and more
products and services becoming avail¬
able to the American consumer and

business, is at the moment undergoing
swings of its pendulum. Interest rates
continued to rise during 1956 and are still heading, in
the same direction.
Bank mergers are continuing at
Banking,

as

a

wide

of the

one

accelerated

an

debt of

The

pace.

enormous

country, which in itself
is inflationary, is being used as an
economic lever to prevent inflation.
It
is the writer's opinion
that the
our

the

most

device

powerful

making full

of it
results.

use

thus far with good

.

We are going to have
schools,
homes, roads, hospitals and smaller firms are not by¬
passed in the scramble for a limited amount of credit. In my estimation, the farm issue is also intimately tied
into the tight credit situation. In large part, the problem
the

to

devise more adequate machinery to see that

than other prices. One need only compare the
farm prices, industrial prices and the supply

money

in

trend

Recently, the Board of Governors
of

units,

8

million

about

7.2

million

pay

imestic

registrations.

trations in
*

;

million

are

all

and

quite
L.

Robert

Oare

signs

only to 1955's record figure.
1957 models by the

The general acceptance of

public

probable rise in automobile installment credit
volume for at least the first six months of this year. As

indicates

a

increases, there can be no question as to the
of sales finance companies to maintain their

business

Intentions

credit extension policies on a sound

<

;

basis.

inflationary tendencies
in the national economy, the Federal Reserve Board has
placed a restraint on the expansion of credit which in
turn has raised the cost of money to its highest level in
In

an

effort

to contain

recent

the past 25 years. These high money rates further emi phasize the importance of grantors of credit to be more

} selective in their extension of credit.
in the
f

r

scarcity of loanable money should not materially hamper
financial institutions in providing necessary credit to finance

The

the real needs of the nation's consumers.
Associates

1

organization looks forward to an expansion of services in 1957 and faces the future confident

>

of

»

maintaining its position

as

of the nation's three

one

largest independent automobile finance companies.

President,
As

one

The

O'NEIL

Tire

General

Company

of the nation's fundamental industries, the Rub¬

ber

Industry, for 1957 and for many years to come is
with a growing product demand that will
challenge the industry's capacity to meet it. 1957 is the
beginning of a new growth era in
rubber resulting from the industry's

confronted

tremendous,

research

ment

efforts.

come

as

The

the

will

dous demand

for

cility

and

will

only

of

way

be

of

research

create
our

a

and

tremen¬

production fa¬

During the past two decades
capita consumption of rubber

in this

pounds to 20.7 pounds

a

high

interest

bearing asset

intrinsic value of

the

Banks

have

rubber
and

air

that

1956

for

banks and
the

money.1

v

|
,

i

/.

demand

"

on

the

.

.

at

the

is

in

.

I

believe

an

entirely

crease.^

forward

the

.

had before.
The

encouraging outlook for the fundamental indus¬
as
rubber, steel, food and oil, is the indicator

tries, such

pointing to another progressive year in the nation's econ¬
Our steel industry for instance, faces a
tremen¬
dous task
meeting its demand this year. The industry
>iot only is confronted
with hugh demands from its auto¬
omy.

adopted by Congress last
demand

on

this

the future.

the

$51 billion highway

program

year will

greatly increase the
important industry for many years in

For Geneial
m

Tire, 1957 should be
company's 42-year history.




down

again

in

with

believe

1957.

The

auto¬

to

1957

with

consideration, we
confidence, being fully

*
one

•

of the finest

vears

administration of the accelerated amortization

Code and

tions and thus enabled them to finance the record capital

expansion boom of the past two years virtually unim¬
peded by credit restraints. It has produced a dangerous
increase in the concentration of productive capacity. Howtaxation
nomic

promote

can

will

growth

85th

before

the

nearly

equalize

balanced pattern of

more

a

be

important

an

legislative

eco¬

issue

Some adjustment to more
competitive situation facing small

Congress.

the

firms is essential.

"

ALFRED

can

look

aware

of

E.

'

PERLMAN

President, New York Central
The

has been

Railroad

almost

revolutionary
change for the New York Central. In 1956 we stepped
up the tempos of both the physical rebuilding and per¬
sonnel strengthening of the Central. We began the year
by
completely
decentralizing
our
-•
•
management into four geographical
districts, each under a general man¬
past

year

his

results

in

ended,

we

the

of

one

fully responsible for operating

ager

first

built
our

'•

into

runaway

provisions of the Defense Production Act have in com¬
bination operated to channel a tremendous flow of after¬
tax earnings to the largest and most profitable corpora¬

district.

had

truly
the

on

hart

modern

Central

announced

and

As

virtually

electronic

new

and

the

year

completed

yard

in

30

be

to

years—

yard at Buffalo,
yards for Elk¬

new

Youngstown.

centralized

traffic

We

control

put

in

between

Buffalo

HON.

WRIGHT

and
Cleveland, providing
longest double-track installation

the

PATMAN

in the

U.

S. Congressman from Texas

Legislative

generally

developments in the 85th Congress will
reflect what is happening in domestic and

international

affairs.^ Taking tne latter first, it would

that in the light of recent developments in the

appear

Middle

East and

Congress
look

Central Europe

the

is

at

going to take a close
military establishment
foreign aid programs. On

our

balance it

to

seems

me

that Govern¬

ment

expenditures for 1957 may be
expected to rise, reflecting a higher
level of defense
spending primarily.
Congress is going to give sympathetic

consideration to the President's Mid¬
dle East proposal but will be inclined
to

weigh

costs

very

all

the

consequences

and

carefully before granting

him the authority he
Nineteen fifty-six
Hon.

has requested.

good year
Wright Patman

foreign trade
large increase
a
significant

was

in
factor

as

far

concerned.
our

as

exports

was

a

pretty

our

The
was

and

accounting for the generally high level of business
sags in such areas as
homebuilding, automobiles

appliance sales. In part, this rise in
exports
financed by an increase in our
imports and in

was

part by
the export of U. S. capital abroad.
However, some do¬
mestic businesses did not share
in the general
prosperity
of 1956. And
they are inclined to be critical of the in¬
creased competition from
abroad both in terms of the
rise in imports and the
export of U. S. credit and capital
when both are
relatively tight here at home. This will
influence the vote of some
Congressmen on the

tion

authorizing U. S. participation in

it is sent up for
approval.

legisla¬

the O. T. C. when

The impact of tight credit
conditions, namely, its un¬
effects and its
tendency to promote the concentra¬
tion of economic
power
in the hands of a few, will
even

strongly influence
comes

dence

before
I

have

major piece of legislation that
the 85th Congress.
On the basis of evi¬
had

ments.

service

71

to

Chairman of the Sub-Committee

me
on

in

my

capacity

Economic

tion of the Joint Economic
Committee and
of the House Small
Business

as

as

Stabiliza¬
Chairman

Committee, I am convinced
that the present
machinery for allocating credit in times
when restraint must be
imposed to combat inflation is
highly inequitable and irrational. While we are all dedi¬
cated to the private
enterprise system, I do not think

to

yards

year.

States

this modern

of

of speeding up train move¬
A system-wide car
reporting

speed

and locate

cars

by

freight

for

shippers within

automatic

Alfred

Perlmaa

operations

teletype

seconds

began

linking

and

this

operation

.

So

that

rapidly widening horizons of science can be
translated more quickly into
economical and modem
transportation methods and
equipment, the Central in
1956

went

into

the

field of broad,
supplement to its already extensive
research.

Our

basic

new

basic

reseach

program

research

.

Realizing that the
would

have

to

be

its people for the future.

use

a

use

atomically-

.

most modern

scrapped in

did not have the
people to
tral in 1956 stepped
up its

as

of applied

laboratory will

techniques such as radioactive
isotopes and
activated engine parts.
".

techniques of science

15

if

years

the

railroad

them

properly, the Cen¬
extensive program of training

More than 150 of the Central's
top management people in 1956 went to
schools and
seminars of the American
Management Association in
our

continuing program with the
organization, and addi¬
tional personnel
development techniques were installed,

including the

group appraisal process.
Central
in
1956
put
into regular

The

Xplorer, and test
weight, low center

ran

of

the

Net

be

Central
these
the

of

intensive

help

cost

decide

the

service

two

new

light¬

We are

studies

and

comparable
of conventional and
lightweight equipment.
income
for 1956,
although below that of 1955,

merits

will

Aerotrain,

gravity passenger trains.

now
studying the results
public opinion surveys to

the second
s

history.

facts:

spring

(1)

of

highest for

a

The reduced
that

1956

the

peacetime

net

freight rate

stems

year in the
directly from

increases

granted

in

failed

by $18 million to offset in¬
wages negotiated by the
industry in the fall of
1955, (2) that our wage bill was
increased by more than

creased

$30 million a year by new
pay increases negotiated this
Jail, and for which we did not
of

emergency freight

every

presented

United

method

despite

products for personal, home or enter¬
are better than
anything we have ever

motive customers, but the

I

retarding influences above mentioned.

.

The American public wants
new things, and almost
daily our research is discovering new ways to make upJiolstery materials more attractive and longer-wearing,
that

-

and

The

experienced in 1956. This boom has been due to the lop¬
sided tax policies of the past four years.- Repeal of the
excess
profits tax, the enactment of the 1954 Revenue

money,

less, for demand
'• ^

'

effects of tight money.

disciplinary

short-term

on

existing shortages.

;■

everything

discovered

their '58 models.

new

be

"

•;

Taking

industry's facilities.

cals.

use

year,

industry should sell more cars in 1957 than in
1956, and this will be helpful to our local area. Defense
spending by our government will again show an in¬

new

not only a greater demand for tires in' the
replacement market in 1957, but also forecast an even
greater demand for the industry's
products resulting
£rom its great
knowledge of chemistry — a knowledge
which has given the
industry prominence in synthetic
rubbers, plastic resins, plastic materials and basic chemi¬

discovering

no

•

savings

save

will

springs for auto¬
in which Gen¬

foresee

tainment

mutual

Everything
perhaps some kinds of steel,
and inventories are again
showing an inclination to
climb. Residental building was down somewhat in
1956,
supply,

and this

years of research and development, the de¬
sign engineers of the leading automotive companies are
about to accept the air
spring for passenger cars. Many
of the major manufacturers
plan to feature this new
on

during

prosperous

a

''

predicting,

are

present time,

good

Now after

I

lower yield.

a

deposits

of

and
'

possess

good reason, another banner year for 1957, although
there is noted some retarding influences.
There are,

equipment, but the reduction of damage to freight they

development

in

return

days

v.-

•

economists

the economic value of the air
spring. The cushioned ride
not only greatly reduces the wear and tear to their

_

high

a

and at the

Many of the nation's trucking companies have

Haul is substantial.

of

-

trucks,

ucts that will create

gains

competition

obligations, 90

•

pioneered research and
development, is one of the new prod¬

O'Neil

that bears

the

savings and loan associations for time

competition

government
Most

the

reasons:

usually

not

might expect in such

one

two

eral Tire has
William

otherwise

would

they

does

asset

an

made

not

only the beginning.
The

than

naturally contain more risk. In other words, it is gen¬
erally the same with bank assets as it is with speed:
the greater the speed—the greater the risk; the higher
the interest rate—also—the greater the risk.
That is,

country, has risen from five

mobiles

/.

•

make, or make loans bearing higher rates which would

develop-/

the per

is

the

a

investments

bond

;

v,.v

■

capital spending boom, which they have sparked, has, in
fact, been the principal cause of tne inflationary pressure

Parshall

deterrent to bank earnings during
of 1957, but will also mean that banks paying
will either make longer commitments in the

not

things that

new

result

development

h. p.

mobile

Rubber

&

many

does

(as

believing

the year
this rate

and

WILLIAM

move,

"..'v'v-

'•

that

see

deflationary

Up to now, only the largest corporations have escaped
the

writer) that this change should not have been made.
Many bankers construed this as an invitation to raise
their rate of interest on time deposits to 3%. This move

and

Prospects for the easing of the current money situation
near future are not in sight.
However, the relative

'

controversial

a

•'

;.

•.

to

on,

prices have borne the full brunt of the

force.

a

bankers

New car regis¬
estimated at 6.2

point to new
car registrations slightly exceeding this figure during the
coming year, which would result in 1957 being second

;
1

1956

on

from February, 1951

of money

cost

farm

maximum rate of interest
time, deposits of 3%.
This was

to

do-

as

System

Regulation Q of the Fed¬
Reserve Act, permitting banks

eral

which

of

appeared

Reserve

and

amended

1

mately

Federal

the

farming is due to inadequate resources.
have come to play a greater and

cost

prices relative to industrial prices has made farm prices
more
susceptible to the deflationary pressure of tight

^

f

its

and

greater role in modern day agriculture. In addition, there
is the fact that the extra sensitivity of farm product

and

.

.

plight of small business.

to

of low income in

that our
and they

possess,

managers

money
are

the

in

decisions

Credit

management of our debt is probably

personal income growing consistent¬
ly, the sale of durable and nondur¬
able
goods
should
reach
record
heights in 1957 with employment re¬
maining high and steady.
During 1956, the automobile industry experienced a gradual downturn
£rom the tempo set the previous year
when new passenger car production
rose to an all-time record of approxi-

Thursday, January 17, 1957

as
sacrosanct,
allocation of scarce resources
which disregard urgent social needs and are impervious

President, Bank of the Commonwealth, Detroit

OARE

L.

,.

continue to sit by and accept

can

we

market

Chairman of the Board, Associates

Prospects

that

PARSHALL

P.

HOWARD

98

Commercial and Financial Chronicle

get relief in the form
increases until the year
end, and

mci'eased prices

and

the

our

on material.
The steel strike
lower production of the
automobile industry—

largest manufacturing customer—were other factors
having an adverse effect upon
earnings.
The

passenger service deficit continues to
cloud the
This situation is
especially critical for a railroad
like the Central, since
more than half of our train miles

future.

ate

of

in
passenger service.
other Eastern

passenger

fares

Therefore, we, with a number
railroads, are attempting to obtain

which reflect

our

costs.

We

cannot

be

Number 5604

185

Volume

.

The Commercial

.

.

and Financial Chronicle

101

(297)

957

[expected to continue to make up losses on passenger
[trains uu'ougn liigliei fi eight raies and, ai me same
[time, compete lot n eight seivice with eitner other rail[roacis naving reiativeiy small passenger operations or
[with suosicuzect ioims or transportation uiat nave no
passenger deficits to make up.
problems

Our

tne

on

Central

industry: Low rate

tne

or

those

pretty
or

much

the

considerable

subject of
creation

of

from the low rate of return. Finally, there are
the handicaps of the World War if—enacted excise tax
on transportation, which is still in effect, and the gen¬
ially tx usning taxes paid , py tne railroads, especially
on passenger station facilities.
Despite these lactois, we feel sure that 1957 should
show improvement lor both the Central and the indusiry
direetiy

lire

banking industry and

The

for

and

relief

gains of

need

government,

we

sizaulc

in

financial picture.

our

f|

rous

low

kf

C.

1956

Philadelphia,

ssue

lore

ft

outlook

The

Government

levels,

'spending

Federal,

is

state

Company,

in

ual

to

is

favorable.

increase

all

demand

Business

at

for

likely at least to hold
high levels. The re¬

appears

year's

maining

of

group

the

individ¬

buyers,

is the only

consumers,

which

indications

one

less

are

for

posi¬

tive. :The average American today
..enjoys a position unique in eco; nornic
history: the large majority of
bur
people have incomes well in
of

excess

the

amount

necessary

for

routine

living; many have large reserves;, buying
on credit is
widely
accepted and generally easy. This
means
simply that Americans have
extraordinarily
wide
latitude
in

'

spending

or

saving.
Furthermore,
portion
of current

considerable

a

C.

Petersen

arises from desire for the
style and not from real need.

buying
latest

This
We

real

any

changes
arise

meet

capacities

miles

seat

totals

in

1957.

delivered

to

the

models,

i

is

banking industry 1 look for continued strong
and for general maintenance of current
interest rate levels. Demand for all types of loans was
demand

insistent through 1956.

a

lied

mand

use

interest rates

taxed

persistent

lly-

the
nce

oad

to

U

and
in

More

of

the

in

i

of

controlled.

>rm

ind
ike
y—
ors

the
aad
lies
ber

ex¬

dol¬

Decisions

ot

than

scheduled

200

miles will
new

airlines,

reach
will

aircraft

most

of

them

seating

costs of doing
business. The need for an industry-wide readjustment
will grow more urgent in coming months.
Plans to inaugurate jet
service in 1959 will move
ahead
appreciably this year. The airframe manufac¬
turers are up to date with production timetables. Mod¬
ernizing of the airways will go forward rapidly, follow¬
ing mid-year delivery of the first of 23 long-range
radars, recently ordered by the Civil Aeronautics Admistration. These will cover major terminals and the
most frequently flown airways. Subsequent installations
will complete a nationwide radar network.
Summing up. 1957 appears to be a good year for the
industry and certainly a good year for air travelers,

and

consistently higher

taking advantage of a decided customer's market. As
indicated, however, individual companies will find it

Pierson

The

will be the ultimate in

1649A

piston-engine craft.

TWA will begin
operating its new jet fleet in 1959.
In line with its
aggressive, forward-looking leadership, the TWA Board
of Directors late
in
1956
elected the dynamic young
Carter L. Burgess, former Assistant Secretary of De¬
fense, as President of TWA. Although he will be the
youngest airline president, he brings to TWA many
years of solid accomplishment, both in government and
private industry.
Also

in

1956, to keep pace with the ever-growing
volume, TWA inaugurated a new Passenger
Department. Under the leadership of John R,

passenger

Service

Ciemson, the new TWA department is responsible for
service to the airline passenger from first phone

every

call to final destination.

Inexpensive,

air

mass

travel

steps taken by TWA

more

TWA's

proposal for reduced

Atlantic

was
accepted by IATA.
regular Sky Tourist fare

oil"

the

The

15-day

discount

fare

advanced

was

during the past

tourist;

plan

fares

This plan
on

the

nation's

monetary

J

vital

across
slashed

tion

opened

up

vast

a

known

as

essence that the

both

the

recently

each year.*

Secondly, in conjunction with American-Export Lines,"
began a unique new travel service called Sea Air'

TWA

Cruises.

These

travel

packages

weeks combine the leisure of

of

three and

two,

Constellations.
TWA

above the

industry average in domestic pas¬
an increase of 17.1%
over
$955
and a 11.5% rise in international passenger miles.
iAmong the many other things of note accomplished"

senger

was

miles, showing

during the past year was the opening of five radically
new
engine test cells at TWA's $25 million overhaul
base in Platte County Mo.
These cells used, for the

year of challenge, calling for greater efforts to achieve
higher volumes and hold oft the imoads of competitors.

Continued

on

page

New Oak Creek Power Plant

-

Keystone oF the Ten-year

.$^(TO;OOB,OflO expansion

program

4Mmmm

partially

many

Federal Reserve Board

able

last-growing
No

ect

to

qualifications,

move

could

with

may

customers

into

the

suburbs.

postwar
on

development has had
business in general and on

.

ain
be




—

WW

the creation
operate on a

their

a

more

no,

scheduled

approve,

profound

banking in particay than this mass migration to the suburbs, so strik¬
ingly evident
throughout our nation.
This unpreceented population
shift means simplv that no service
usiness, such as banking, can long afford to be absent
rom the
suburban centers
not only to share in the
growth, but also to protect its city position which otherise will
in time be affected by competition from the
ur.bs. District or county lines have little, if any,
ineaning for this great, continuing movement of people,
'ommerce, and industry. The new legislation is already
.

■<'^1

banking

ol bank
statewide
a multi-state)
basis. In many
sreas, state regulations restrict the activities of an in¬
dividual bank to a prescribed district orVounty. Often
this
compartment coincides with the city limits. In these
cases, banks within the city have been unable or only
to

five

ship crossing, sightseeing

a

in Europe and fast flights back to the U. S. aboard TWA

is
of

enacted

new

a

authorities.

industry and
Federal legisla¬
bank holding companies. This legis->
the Spence-Robertson Act, provides
to

the

pertaining to

lation,
in

is

the
$97

market to the airlines in that it had direct appeal to the
millions of Americans who enjoy two-week vacations

in

interest

customers

two

First.

trans-ocean flights.

all

of

by

year.

present is
part

is required if this danger
group
has been more aware

No

than

succeeded

Of

aan

his

industiy

Lee

Warren

in periods of

the

on

economy

holding companies which
(and
technically even on

in-

Inherent

growth like the

Restraint

ible

'om

rise.

to

pronounced
inflation.

and

the

ton

cargo

ordered, TWA will have an un¬
luxury airliner capable of
flying 6,400 miles non-stop at speeds ;
of more
than
300
miles per hour.

Because this unprecedented deof the financial community,

subject

155,

respective

satisfactory load factors.
Economists agree that the upward price trend will
continue, placing a further burden on the airlines in
view of their bargain fares.
United, for example, has
held fares to 1940 levels while absorbing a series of
i

new,

surpassed

holding in check inflationary pres¬
sures of
no
mean
proportions.
Certainly the banking
industry will continue ever mindful of its responsibility

its

are

their

achieve

increases

even

volume

Lockheed
1649A. With
this huge aircraft, 25 of which have-

resources

continued

of

problem

have

led,
the

The airlines,
settle

stiffened opposition. Each

and

an

its

of

in this matter.

Idi-

;ht-

point.

general

a

Acting l'orthrighlly, often in the face of criticism, they

ting
al's

be

this

the

and

threat

segments

en-

any

enjoy

of

passenger

introduction

long-range

for

cause

upwards of 50 passengers.
Their addition to company fleets, including 7 DC-6Bs
and 20 DC-7s for United, will make it more difficult to

of
of

in nature. Behavior
spending group is, therefore, difficult

instead, psychological

are,

loan

in

I

and

foresees

of

year

the

These changes in sentiment do not necessarily
movements of conventional business cycles

For the

be

on

the

been

small

market subdivision.

and

with

give the im¬

is

would seem, have merely to

prediction.

lenn

may

is

transport

TWA

1957,

greater

mail,
while
remain near

lar of passenger and cargo revenue
will be subject to increasing competition because of en¬

larged

For

in

to

air

both the travel¬
ing public and U. S. industry.

less

a

indicate

umes

best bargain open to

from

this important

this

too, the activities of the air¬
industry as a whole,) as growing
passenger
volumes and cargo vol¬

pas¬

10%

to

Actually, the attempts of various
companies to expand volumes will
W. A. Patterson

wage

Certainly

change
in
their attitude.
However, such
have occurred, often with little warning, in

the past.
but

is, therefore, readily deferrable.

people have been in a buying mood lor
and that there is no present indication of

that

time

some

ting

of spending

type
know

5

pansion.

four-engine

general

local.

last

at.

Howard

it

be

Pa.

expected

and

equipment

and

plant

business

for

revenue

in

likely

there

concern

Available

u

nail

is

forecasts

pression

record

Trust

That word
would de¬

ended.
it

year now

growth.

line

levels.

These

PETERSEN

Fidelity-Philadelphia

President,

in

the Civil Aeronautics Board, authorizing duplicate serv¬
ices at many major cities, will begin to pinch in earnest.

HOWARD

bco-

12%

to

expansion

express

know

improvements
the Central will result in greater effi¬
ciency and improved service which should be reflected
being made on

8

freight ton miles. We look for

lax

that the many far-reacning and expensive

is

miles and from

senger

compete

Witn such actions taken by the

during the

transportation in 1957 continues
of up to 12%
in domestic
revenue passenger miles are forecast
by our economists.
Last year's increase, by
comparison, is estimated at 13%.
m
Unued's operations, we .expect

modernization of regulation in order to
in today's transportation market.

a

successfully

breaking passenger volumes coupled with
technological advances highlighted 1956 for Trann
World Airlines, and one word can, perhaps, sum up

TWA's activities

PATTERSON

shares

raiis

tne

mat

PIERSON

Record

gains

tion, we sense a growing feeling among the public and
government

LEE

great

air

Industry

back

in

WARREN

Chairman of the Board, Trans World Airlines, Inc.

scribe,
outlook

favorable.

their actions with respect to pending applica¬
we believe mat Congress win give
relief from the "wartime'' transport excuse tax. in addi¬
servants

judgment,

President, United Air Lines

Moreover,

their

my

customers.

its

WILLIAM A.

extent on
tions.

In

give

best promise of
banking services in our rapidly-

generally. The ICC has acted speedily to grant some of
the baoiy
needed increases in freight and passenger
rates, and how well we do in 1957 Depends to a large

im-

which

severe

J competition iTom suosidized carriers and from unregu[jated private cail'iers, trie continuing massive passenger
[deficit, an out-aateu freight rate structure, and the
| stifling eiiects ot the freignt car shortage, wnien stems

)ital

discussion.

conditions

ample and increasing
growing suburbs would be in the best interests of both

reflect

tne

return,

the

Wtyii;

fc jaik

Facilities doubled to meet new growth

fourth unit to be

bring the
To meet
—

and

increasing demands for electric power

anticipating the buoyant effect of the

10-year program was

have

this

more

launched in 1954 to

ex¬

units

now

program

facilities.

000

struction of
where

announced for con¬
fifth generating unit at Oak Creek

plans
a

three

units

were

are

WISCONSIN

now

in

operation.

ELECTRIC

A

a

than

pand generation, transmission and distribution

Recently,

completed late this
capability

plant to 500,000 "kilowatts.
will

—

completion of the St. Lawrence seaway

total

capacity

double

in

at

kilowatt

unit

at

are

a

the Oak Creek

year

Oak

new

will

Creek

fifth unit

kilowatts

capacity of

operation.

capacity of

POWER

the

The

250,000

any

—

of the

The 10-year expansion
a

second 250,-

Creek.

Ultimately,

also includes plans for

four such units
total

of

of the

Oak

contemplated to provide

million and

a

a

half kilowatts

plant.

COMPANY

SYSTEM

102

102

Continued from page 101

considering

U.

aviation

S.

CAB

examiner

"Polar

Pole

to

Route1'

dynamometers

were

market.

to

the

Denver,

West

•

TWA

Coast

the

over

but

North

significant eiianges in profit margins, since most
companies have the protection of product diversification and relatively few are dependent on one product

netronic Reservisor

work

net

called

the

Nineteen hundred and

Mag-

fifty-six

order

also the year that

was

began preparation for the coming Jet Age in com¬
transport with the preliminary orders of 30
880's

and

eight

in

1956—and

,

Boeing

707's.

TWA

also

5%

of

profits,
of

the

of its top engineering and flight personnel to help
industry solve the problems of the coming jet era
before they arrive.

Since most /

reasonable estimate.

a

expect a number of dividend inof the favorable trend of sales and

some

creases "as

the

earnings which

result

a

we

visualize;

now

'

'

"•

7

W.

All in

all, 1956 was a year in which TWA, in fact the
industry, was preparing for the far greater pas¬

senger volume which the past few years

]

-

./rA'p

presage.

"We

begin

only

can

1957

amid

this time

at

assume

unsettled

that

ditions in 1957 will be about the

peaceful world.

conclusions

our

same

PETERSEN

Western
the

point

another record

to

year

for"

and industry in 1957, approximating
long-run trend for this area. National and

international

Developments, of

course,

will continue to

cetermine the extent of

Both

nationally

our

in

cilities,
dustry.

progress.

the

West,

forward

stantial

gain

in

next

to

year

Even

sub-

all

levels

under

the

-public

will

likewise

impact

of

increase

defense

programs,
educational
and

quirements of

a

-Competition

re¬

,

tmue

more

abundant

as

a

result

,

...

at

about

than

1955.

expansion-programs. Be-7
cause
of rising costs and active de¬
T. S. Petersen
mand, however, stimulated in part
by
the
foreign crisis, prices will
generally be firm to higher. Sales by the petroleum in¬
dustry next year are anticipated to increase about 4%
over
1956, even though large quantities of natural gas
will be available for the first time in the
Pacific North¬
west.
Another record year is seen for motor

gasoline
rapid "expansion in de¬

the

rate

same
;

.,

.

as

expected
the

of

the

effort

to

of the West.

PLOUGH

to

reviewing the

believe

1957 is

The

that

the

current

outlook

trends,

for

the

favorable.

very

industry

as

a

acteristics

drug

reason

industry

in

whole possesses
strong growth char¬

being made in research labora¬
in
finding
more
effective
of coping with the
problems
of man's physical well
being. Ex¬
panding population increases t h e
tories

means

potential

customers

favorable

effect

the

on

outlook of the
drug industry.
It is our feeling that the

this

as

whole is not

a

as

are

health'

to

products,

may make

even

it

purchasing
though their economic situation
larger

expenditures.
Mt is

our belief
that the
earnings of
should keep pace with

limits.

increasing

drug manufacturers
sales because the drug

keep its costs in balance wi thin
"reasonable
Both capital
requirements and labor
can

costs

(as a
are lower than in
many other indus¬
tries.
Advertising and selling costs will tend to increase
in 1957;
however, these expenses can, within
certain
limits, be controlled by

percentage of sales)

management.

In

general, most of the companies within
the indus¬
try have completed modern
plants in the postwar period
Since these plants were
built not
only to meet the imme¬

diate

needs

future sales

but

also

took

increases, the

into

consideration

probable

added volume
may be handled
without a proportionate
increase in overhead. In addi¬
tion, it is not probable that
debt
financing for plant
expansion will have to be
incurred to any
major extent




?

.

is- expected

'

.

,

distributfoni apparatusand

v.

to

be

reduces

Athens,

Ga; "(distribution

£ tlansfofmers^wiir;;help • meet -demand for" apparatus
/*.
Cr.' produdte,Valtfiough^onIy Blooming ton will be completed
keep close,
in 1957. Revamping of facilities at the Steam Division,

firms;

^

is

carrying costs

expected

to

be

of

very

rr

,

u

•

«

x.

-

for

expenditures for .this: purpose:.
of

excess

we

desigh^^'dvdevelop

"Worid3s!^rst;

$150,000,00ft'
r

,

x£

*

'

this

construction

and

v

f rnent £Of
'

ex¬

the

nuclear

increases

the

as

greater

service.
in

telephone
in

As

those

components

also

began

will

gain

first ^atomic

nuclear

reactor

;

'
Donald

C. Power

contracts

to

strike

to watch very closely in
determining our
higher telephone rates. If this higher cost of
continues, unquestionably we will have to ask

negotiated

1963 and

with

four

unions

major

should offer good
prospects

of labor

stability during this period. Employment climbed to a
new
high of 127,796 in 1956, but vastly more
significant,
.employee morale since the strike has been excellent.
Employees

telephones.

money
situation is making the cost of
General Telephone System higher; a fact which

are

cooperating wholeheartedly in the postManpower losses attributable to the

program.

strike

were less than
5% over-all, and
only one-half of
1% among engineers and research
people. In both cases,
turnover was lower than normal.

for

our

public

utility

commissions

operate to review

we

added

our

in

the

rate structures

we

The

in

line

costs.
a

through the sale of System securities will
high as we have experienced
during 1956.

operation

sidiaries,

which

of

our

manufacturing

include

Automatic

and

sales

Electric

sub¬

Company

the Leich Electric
Company in Chicago, have con¬
tinued to show impressive
results, and with the backlog
which they now have on
hand, we anticipate that 1957
will again be a
record-breaking year for those groups.
Our new
manufacturing facilities for Automatic Elec¬
tric at
Northlake, 111., will be in production
and

during late

which

capacity

as

we

well

believe
as

will

improve

increase
our

our

productive

efficiency to produce

high grade communications
equipment.
in

all

possibilities

it

is

my

ahead

for

opinion,
the

v

looking at 1957 and the

telephone business that

records achieved

during 1956 will again be broken

ing

these

1957.

pendent
other

change

All
upon

of
a

H.

estimates

solution

to

the

must

of

Middle

course

be

the
dur¬

de¬

East, question

international developments which could
vastly
our
present thinking.
\

G.

PYLE

President, The Central Bank
Company, Lorain, Ohio

states

scale growth and continued rapid ex¬
anticipate that our requirements for addi¬

tional money
be at least as

or

Yankee

Meanwhile, Westinghouse was working on propul¬
sion plants for 12 additional
atomic submarines and a
land-based prototype reactor piaiit for a
large - surface
ship.
' >•
>.
.< -. 7
:
' - .:
Labor

present

various

All

for the

power-generating sta¬

qrdel; to establish Westinghouse as a major supplier
reat&Qit cores, an Atomic Fuel Department was cre¬

extend

will have

1957,

new

mated;

into

than 250,000

for-

In

the

the

more

the

received the

AtomfcYElectric Company's
near
Rowe, Mass.

areas

comes

for

the

7 contracOo develop the

daily business
and social habits of people, we find
that the growth in the number of
telephones
is
going on unabated.
usage

plaut

aircra¥f;'Carrier. In addition, Westinghouse

of

telephone

reactor

-atomic-p0wered• naval surface vessel, a
for
^launching'guided'missilesv" Pfpcure-

light cruiser

'

to

pansion,
Plough

While this

-'-(;b^mfcafi-:8fXumin\?.rii^d:x)ther'basi^iiSdtistriesV.>/^
•a-Aow;er>;^^; Twp!yri«wHplaHti5:7-at-'''BlO0mingfOn,'' Irid.''-" (switchgear

at

With this large

Abe

act to

inventory costs

to operations;.

tion

the

as are

some

rtt'dl'ttc'- ii'-irir»ripacfic r>acVi parninoc rhirintr

activity is designed to con- !
give people in our various
operating areas the very best in

tinue

money

necessary for them to discontinue
acquir¬
ing products that are not as
essential or require

industry

•

Competition

and

purpose,

of

where

continue

control.

may also
respects.
Y

-

pansion
?i

with

since people

inclined

business activities in

an^ ^arges;inflation:

.

All

sensitive

to general economic
conditions
certain other industries

thi3-area

;

anticipate"
that during 1957 the figure will be
closer to $175,000,600.

drug in¬

dustry

rat^s: are

;v.

necessary that business
inventories due to.higher

record

for

need

.

inventory

Lester,Pa;/ will result in;sfraigntline production of large
Turbinesu.. small 'turbines and heat exchangers.,. Now
"
;under construction* at Dover, N.
a new plant for
his costs should continue to make
satisfactory -progress; Y the -production of electric stairways. v;
T7^7.7'
!*'!>,- Wes&nghause;;. during >1956 established7 itself more
DONALD C. POWER
yv ••firml$S^th©: leader ir* atomic power as: performance of
1'
5
v-! Y^estitl^puse. nuclear ! reactors, built for the Atomic
President, General Telephone^ Corporation
EnergjS^ommisrion - and the Navy,7 merited additional
During 1957 General Telephone will, continue its
tre--,\;;Contra^tg7fbr nuclearpropulsion and electric genera ling
mendous expansion and construction
program, setting:' 7units.^^fe!*lT7 S.; Navy contracted With
Westinghouse to
another new

The

future

better

1957, but the energetic businessman who watches

money to

progress
made
in
laboratories
extends the normal life
span of these
people. These basic factors have a

and

Because of steadily increasing costs, the Westinghouse
board of directors late in 1956 authorized
adoption of the
LIEO. (Last In, First Out) method,of
valuing inventories.
rphe, |jj£"0:.sysfem "eliminates inflation in

i
.

be

of

keen in

we

the

very

for

1956.

as

inventories!

such

we

and

reduction

prevailing, "tight" money market

.

'

During 1956 we will have added
through
internal
growth
225,000
telephones. ..to
General
Telephone
System. We expect that during 1957

ress

of

will

and

has

one

because of the exoanding
population, and because of the prog¬

number

The

retard

.

It

control

population

President, Plough, Inc.
After

effective -cost

modern

industry's

adequately provide for the petroleum needs
ABE

income

same

During 1956 the System spent in

to continue at substantial levels

result

.

r

production, and refinery expansion

as

7 ,
increase in

product, stiffer competition; and rising
promise to "squeeze"- earnings,;; thereby stimulat¬
efforts to achieve more efficient production, more

ing

in¬

,

total requirements with the result
that additional foreign
crude imports will be
necessary.
Capital outlays for
domestic exploration,
are

about the

^

demands, the industry must
up its supply of raw material and
products. Although
California crude will continue to
supply the largest
portion of the industry's needs, it will fall short of the

1957

predicted

costs

many y^a^j
muCn.^
SUCn
as
scnoois,

19,5ftrbut

.

;

been

;

_

step

during

the

has

-

<

sales along with the continued
mands for aviation turbine fuels.
To meet these increased

programs

Agricultural

-

recent

Despite

production
V
V;

1957...

of

.

of

in

gross! national

;

.

greater

plant iacinues win u
:f957|Tis{ partihlly reflected in Westinghouse by a 50%
continue, but total
commercmbbwld-.ri$e ;£h;;7105(1 ;Oi'der%acklogs of the Apparatus Divisions,
ing may be some less
th^.^jp
;XpparatuSlproducts are ! used; in. the electric utility, steel,
Residential building will likely oon-

W. B. Pollard

with supplies of various commodities
»; rate

becoming

to

of

will;

immer

expansion

growing population.
is likely to- stiffen,.

,

interest*.-

-,,

: the

other

bUilaing

attractive
,

iblic

needs,

and

though
than for

P.UbliC

consumer

works

.'general
7

be

higlier

spending/*
supported by high employment at j
rising wages. Government spending v
at

should

.

look

we

and

year

at

$420

forecast

tr

electricity. This, in addition to good
transportation and distribution fa¬

"

each

Price

Ai

-

continue
to
expand.
The' City of
Memphis is building a large electric
plant to provide for present and
expanded
requirements
for
cheap

business

normal

increase

to

better than;
annual rate, and will
billion.'- The steel, auto-Y
mobile,^ rubber, chemical and glass

i

which
Vjwuyin

.

indications

predic-

output

,

1956, and draw

as

in

next

^industries ^ all important customers.'
of
Westinghouse — are a
few
for

:
v

con-

up

the recent 3%

r

to business prospects for 1957 -on this
basis.
The
Memphis-area
should

as

President, Standard Oil Company of California
Present

'

A

political.

Support
nation's

and .services

continue

„

world

finds

that, the

'

conditions.:' We \

world

are

ago;

year

during the "Korean build-up."
optimistic outlook for record

goods

K

Memphis, Tennessee

certainly, mass air travel, shuttling millions of
people between continents, between cultures and socie¬
ties, can easily be one of the major factors in creating a

S.

POLLARD

Order backlogs

a

sales

lions

President, National Bank of Commerce,

And

T.

B.

through

generally

'The

1957

.

entire

over

.'1951
^-

might

one

a

and it is exYpected that orders booked in 1956
will
top the previous high set in

15%, with corresponding increases -111
to be

companies in the drug industry are comfortably

iinanced,

lent

to

appears

for

predictions

record high.
". 40%

sales increase for the industry on the-

a

of

view

.

.

1957

^

carried

higher level of business activity during the coming year
—Westinghouse sales in 1957 are expected to reach a*
.

During

mercial air
Convair

--

line.

ordered.

was

in

any

Tulsa, Oklahoma City and
flight schedule, and a vast

reservations

has no reason to feel that

one

Company

result of vigorous, preparations

As

1957 should introduce

given

PRICE

A.

President, Westinghouse

Electric

Competition in the industry has always been vigorous

be

added to TWA's

electronic

TWA

that

recommended

from

Europe.

Tucson
new

f

history,

engines; eliminated the wooden propeller.

A
the

in

time

test

and

Chairman

Thursday, January 17, 1957

...

GWILYM

immediate future, a factor of some signifi¬
present
conditions in the money

during the

€

cance

first

and Financial Chronicle

The Commercial

(208)

The long-run outlook of
the United States
bright one. The production and research

of the past are

jection
world

ican

into

for

reasons

the

future, ■ Excludling
conflict, and allowing Amer¬

free

prevail,

thought and
our

can

expect

ing

as

a

is

truly

achievement:;

important

Nation

movement

and

its

our

the

optimistic

pro¬

influences

of

to

peoole

higher standard

of

liv¬

decades pass.

The

1957,
in
my
opinion,
however, faces the test of a continu¬
ing rolling adjustment which
has
been

year

in

operation during
1956, and
well result in the year
ending in
1957, lower than that,
prevailing in
the latter part of 1956.
may

The
1956
in

as

one
a

major

expansion.
porations

factor

great year

business

plant
Most

are

of

was

and
the

planning

in

holding

the

volume

equipment
major cor¬
five and 10

H.

G.

Pyle

ahead and have been
planning
production facilities for the
imnact of new family
formations to confront us
increasingly, sometime in the
early 60's.
Each major
corporation
has ambitions of
capturing a greater portion of this
ready market and
years

new

with

this

comes

the

competition

which

eliminates

in-

;

Number 5604

185

Volume

Commercial and Financial Chronicle
The

.. .

plants or less acceptable products. Caution
well be placed upon the rapidity of expanded ca¬
pacity.
The other factor of strength was the consumers' spend¬
ing for non-durables and services aided by expanded
personal incomes.
The above factors offset the
17% drop in housing
starts and approximate 28% drop in automobile produc¬
tion and held 1956 levels well above 1955.
The years 1955, and 1956, witnessed a rapid increase
in the use of credit. The capital improvement and invest¬
ment boom plus long term real estate mortgage invest¬
ments nave used up the savings taster thamtue ability
of the nation to sav(e.
In this environment of unusually
high credit demand and short supply,, future capital ex¬
penditures planning, and personal expenditures may well
take a more conservative attitude.
Y7-.7
The main boom to 1957 is the continuation of capital
improvement programs started in 1956, as well as the,
new projects planned.
This should stay at high levels'
through the first part of 1957 with a gradual reduction

problems the industry must face during the year. These
the same problems that have confronted the utilities

efficient

lor

latter part of 1957.

in the

■

State and local

Federal,

,

ability

the

is

to

in¬

secqre

Barring

to

tion

of

last

properties

and

preference

trie

Most

clause.

do not foresee for this
climb

in

year,

electrical

no

joy

.

The

motion

pate

a

and

any

In the above

in 1957.
prediction is contingent upon the gen¬
eral economy both here and abroad,
our past experience suggests that the

the

Like

costs

that

Ohio, in

a

continue

places Lorain,
position with respect to any general

favorable

several
an

In

all,

ducers.

■

larger
is in¬

for
ap¬

market.

pic¬

the

businesses,

ours,

in

to

in

production

but

is

factor

this

been

benefit from

the

our

1956

War II

an

change

The

took

pent-up

of

share

the

that makes

are

beginning to get
dollar.

consumer

the

shoe

of levelling

.

I

and
not

sales

good
come

gains

on

automatically.

as

well

in

as

Continued

Federal Deposit
Insurance

? • '

DETROIT, MICHIGAN
Statement of Condition

December 31, 1956

RESOURCES

past several years.
Ycreased production of

7# the

^1. I

First, the in- 7
the new and

^'glamorous" growth industries
.7

7

^

i

costs-and relieve the '
A pressures
of labor shortages, they
A will be supplanting, or perhaps more
Harold Quinton :
accurately,
supplementing, manpower with
electric power. Third?
there is a pronounced increase in the emphasis upon
improved lighting and air-conditioning in the many new
schools,.hospitals, office buildings and other commercial
to

OF

BANKS

$ 57,154,294.12

,

170,217,433.51
2,670,000.95
420,000.00

.*

DISCOUNTS...

,

AND

FURNITURE

103,254,136.85

1,897,947.34

HOUSES

BANKING

FIXTURES

,

966,266.33

1,140,749.42

ASSETS

OTHER

13,878,810.34

.

SECURITIES

FEDERAL RESERVE BANK........

AND

LOANS

cut

AND

BONDS

STOCK

/

FROM

MUNICIPAL BONDS

AND

OTHER

Second, as industries in general turn >
more and more to automation in an*effort

7

DUE

AND

GOVERNMENT OBLIGATIONS.

STATE

will

dependent in large measure upon
increased consumption of electricity.

'be

:

S.

-

•

•

.,

planned for
■this year. These trends also hold promise for increasing
use of
electricity .even in the absence of a rapid rise in
the general
economy. Fourth, in spite of the anticipated
decline in the number of hombs to be built in -1957, a
establishments that

continuation

of

the

are

being built, and are

recent

trend

to

larger

homes may

$351,599,638.86
-

LIABILITIES
DEPOSITS.

.

.

.

$326,754,200.50

.

6,090,850.16

LIABILITIES

OTHER

CAPITAL

(COMMON STOCK)....

4,754,588.20

PROFITS

\

$351,599,638.86

reasonably be expected/ These larger, more expensive
homes include a wide variety of electric appliances and
should result in higher average residential consumption.
The residential
heat pump may be expected to receive

n?-.ore general acceptance during the
Applications

year.

constantly in¬
this occurs.
i^tric energy is becoming more and more indispen¬
sable to the welfare of the nation and the well-being
of its
individuals. Thus, the upward trend of the energy
creasing in

sales

curve

of

electricity

every sector of

is given

a

have

resistance to

ve[? few industries enjoy.

been

the economy. As

downward pressures
^

My view of the sales growth of electric utilities
be expected in. 1957 does not overlook the

may




which
major '

7,000,000.00
7,000,000.00

SURPLUS.

UNDIVIDED

BANK ofthe COMMONWEALTH
SERVING GREATER DETROIT

THROUGH 25 OFFICES,

broad

1957

get their full share of the market.

Corporation

U

favor¬

this

par¬

manufacturers, must be alert and aggressive

order to

Member

CASH

more

is

these types. Such gains will
Competition for the consumer's
keen and shoe retailers,

electric,.utility

*

a

dollar will continue to be very

Member

the

will

houses,

growing importance of style in men's, teenage,
juvenile shoes should result in broadened markets

,:.VyV«

industry will con¬
tinue to register the advances which
have characterized its operation over

It

sales outlook for

off.

confident, however, that

am

which
for

The

and

System

Company

place

interest rates tend to discourage somewhat
buying for these consumer durables.
The
consumerTion-durables, apparel

Federal Reserve

President, Southern California Edison

,

increasing portion

of

.

Shortages of manpower, materials, and of money are
likely- to restrain the economy's advance during 1957.
While the effect of these restraining influences on dif¬
ferent industries will certainly not be uniform, the over¬
all economic pattern should be one

be

growing

ticularly bright.

markets.

studies establish the fact that the age

QUINTON

will

this

demand

more

HAROLD

plans

of

.

between 16 and 25 represent the large segment
of motion picture patronage. In the record business, as
well as in the motion picture business, the development

difficult to maintain. It is my
opinion, that the upward march of prices and costs may
be halted in 1957. The above views are made with the
'assumption that there will be ho world conflict.
•
■
*
be

Rand

has been expended for hard line

a

1957.

shoes included,

able

year,

7 Certain of

requirements

end of World

into

rate

and

believe

motion picture business we

the growing foreign

H.

net result has been that

somewhat
_

Henry

.

Higner
the

the

.

of

refrigerators, television sets, etc., appears to have
partially satisfied.

cars,

trend

stabilized.
In

we

now

excess

.

the

continue

present

recreation.

and

all

the

meet

During

goods.

feel

we

that

to

of the consumer dollar

designed for mass

are

in

produce

are

groups

1957 should be a good year for efficient pro- ,7
It will be a highly competitive one and profit- *

margins will

the

of

percent

even

There

business decline.
: <:

half

year

will

accelerated

with the increase in population, we have
more
potential customers.
Our job is to keep them
minded to our type of entertainment by utilization of
an tne best promotional and advertising methods.
Eachj

port on the St. Lawrence >

Seawaj'salong with its other advantages,

Rackmil
1

area

favorable influences of a

The

R.

Milton

respective companies.
and particularly Lorain, Ohio,
has gained heavily in the capital improvement program.
Lorain is favored with efficient and modern plants in
steel, earth moving equipment, shipbuilding, among
others. Sometime in 1958, a major automobile assembly
plant is scheduled for completion with maximum payroll
requirement reported at approximately 4,6)0 employees.
Lakes

first

being geared to meet the
upturn in the demand
shoes.
Production and distribution

for

past year, has experienced increased

credit

sometime during the year which

highly selective as to
Great

fact

tainment

other hard goods pro¬

first

the

pany

heartened by
level of
prosperity 1 will
provide additional
money
for the purchase of enter¬
consumption,

iavoxablei influences on bond prices. The
market in this environment could be lower and-,

The

the

en¬

1957 will quite likely
during which the

upturn and

Since

As both the record and motion

could-have
stock

should

anticipated

of| population is eager for rec¬
reation, particularly if the price is

I feel that present fore¬

environment it would apoear that

of

with

sales,

for

encouraging.

600,000,000 pairs.
Plans at International Shoe Com¬

mass

the goals planned for.

demands will be eased

picture

in dollar sales.

industry

business, particularly phonograph
pictures, has good reason to antici¬

prosperous year

Although

-

opinion,-are dependent largely

automotive

reach

Company

quality they desire.
Shoe production should also show

entertainment

records and

automotive production are optimistic.
Inven¬
durables can be troublesome even at present

should

Shoe

and appear willing to pay for

parel

be

ture businesses

not

that
said

RAND

up.
They are looking
quality in both shoes and

better

an

tive, may face a market that has been heavily sold and
the liberal credit terms in 1955 and 1956, have borrowed

levels,

H.

grading

Universal Pictures Company, Inc.
-

construction in my opinion will decline
credit problems, unrealistic inter¬

ducers

to

creasing evidence that the public is

right.

of

The

merchants

upturn

pair

upturn

RACKMIL

R.

the consumers of durables, non-durables and serv¬
ices.1 Automotive, though models have been made attrac¬

of

shoe

and

in

sales.

upon

tories

feeling
be, as I

my

continue

International

particularly

Retail

President, Decca Records, Inc., and
7

guaranteed and insured mortgages and mar¬
kets borrowed from the future under the 30-year, no
down-payment mortgage program,

casts

crisis, it is

the

MILTON

doubt

est rates on

somewhat from today's markets.

our

indicators

economic

is

year

seriously affect the

can

of

one

healthy and exciting.

present uptrend.

In summary, I believe that outlook for the electric
utility industry in 1957 is favorable. Nothing short of a
very serious and protracted downturn in business, which
continued

remains

point to another good year
for the shoe industry for 1957. Population, national in¬
come
and consumer expenditures will all continue the

past, and that, to the contrary, some progress may be
during the year toward their ultimate solution.

I

appeal

will

HENRY

made

7

year,

business

President,

Mounting evidence suggests, that these problems cer¬
tainly will loom no larger in 1957 than they have in the
•

amusement

deal

electric

unforeseen

any

the

directly and courageously and quickly
with this problem, the operating utilities will suffer. A
second major problem lies in the threat posed by un¬
fair, subsidized, competition through government opera¬

further in 1957, due to

The keys to 1957, in my

first

.

governments will

spend more in 1957, than in 1956, for the armed services,
and other public services, and may well
offset possible decline in plant and equipment expendi¬
tures in the latter part of 1957.
.
:•
7

y

The

rates

hesitant

roads, schools

Residential

years.

personalities with youth
important projects.

most

rapidly enough to offset the inroads upon
earnings caused by inflation; that is to say, the increas¬
ing costs of labor, fuel, construction, taxes and more
recently money, none of which can automatically be
passed along
to the consumer.
Where regulation is

'

;

many

creased

,

ii

of

-are

may

103

(299)

OPEN UNTIL 5 P.M. MONDAY

THROUGH FRIDAY

on

t

page

104

104

Continued

from

Slick

103

page

costs.

F.

FRANCIS

RANDOLPH

•

Board

President

and

Tri-Continental

Corporation, Broad Street Investing
Corporation, National Investors Corporation,
Whitehall Fund, Inc.

The outlook

is for the economy to remain very active
1957.
That the capital goods industries will

into

continue at

high rate is assured by programs already
underway, and there should be an increase in the de¬
for

mand

a

durable

consumer

particularly

automobiles.

goods,

works

schools

than

to

require

the

pated

greater

increases

earlier.

for

of

all

the

antici¬

is

outlook

propitious,

however.

Declines

foreseen

residential

and

in

to

over-all

Again tight money is

:

rates—is

export

demand

for

this

F.

Francis

Kandolpn

they furnished

in

slackening

a

manufactured

in

goods,

East flareup.

decreasing profits.

do, however, remain good for the longer
range growth of the economy..and, as--in 1956, the pre¬
vailing picture need not be unfavorable in 1957. There
are now, of course, many built-in economic "stabilizers"
that did not exist in the past. But there are also Stresses
strains

bond

tneeconomy,

on

market,

increase

an

pressure on corporate

competition

and

in

weakness

as

business

on

DC-4's.

will

With

Chairman
In the
come

to

of

the

RENTZEL

Board,

Slick

after

Federal

tion, Slick had

Airways,

income taxes of

In

in

Slick

created

domestic

DC-6

a

more

from

(after taxes)

the

sale

of

of $148,000.

the

company's stock¬
holders authorized
the increase of
capital stock from one million to two
million

$5

shares

share,

per

and

with

a

value

par

in anticipation

of

For

1957,

debentures.

has

company

press,

the

of

an

first

59

ton

months

substantially the

the

same

inaugurated.

first

rale,

airline

specialists

Live Cargo.
aircraft

in

Sales

a

the

in

the

Chesa¬

shows.the

industries in Slick's future
*

'

expects

While

the

to

the

mail

cargo,

and

ex¬

million ton miles of cargo over
1855.
This ratio will remain

of

for the remainder of the current

.•$!

minimum

nation

fields

to

of

do

air. shipments,

on

It

so.

Mail

customer

month in
in

1957.

common

tions.

and

added

Express

new

ai

d

of newer, faster
service.

on

a

large

ol

out

tne

revenue

of

$2

million

a

This will represent substantial
increases

a

Twentieth

overhaul

opera¬

groups

price

Fund

study

59
distribution

as

tag«on transportation hlone.




on

:

-

" '

the

U. S.

1956 and

Chemical

&

aluminum

a

work.

of

than 4,500,-

than 6,000,000
more

Canada

the year

aluminum that

bered

as

have

been

ket demand.

ditions
of

30

in

the

extent

to

up

additional

an

essential

an

future

mar¬

contrasting con¬
actually compatible to

that

is

aluminum

with current

These

are

metal

when

period

a

supply caught

supply
prerequisite

encouragement

aluminum

applications
large tonnages.

of

anv

requiring

The automotive industry is

equipped to handle

are

Slick

.

development stage fcr several years,
and, secondly, it will also be remem¬

Forty

to

Corporation

industry, the closing months

1957 should prove to be a signifi¬
respects.
It should be a period of important
"breakthroughs" for
number of major commercial uses

its

out¬

an

standing example. Typical major

offers

specialized
charter plan—tailor-made

a

RHOADES

Kaiser Aluminum
For

plications under evaluation

ap¬

in¬

now

and

automobile wheel and brake druim.n^—

or

needs, interests, and budget. Slick is equipped
manned tc render exceptional service to contract

charter service for commerce, the military and inter¬

national

diplomatic activities.
Overhaul

The

technical
the

sole

Maintenance

and

employs

company

craftsmen

overhaul base

at

its

at

San

than

trainer

the

The

R-1300

since

Division

400 highly skilled,
and aircraft engine

aircraft

Antonio.

over-hauler of
T-28

more

company

has

been

engine for the gov¬

July, 1951.

It has serviced

engines.
will

company

commercial

equipment in

concentrate

planes

and

servicing

on

engines

well

as

as

private
military

1957.

D. A. Knoades

one-piece, die-cast aluminum

a

-

development of the Kaiser Aluminum & Chemical Cor¬
poration, and an all-aluminum engine block, a joint
development of Kaiser AJwfrinwm and the Doehlcr-Jarvis Division of National Lead
Company.
The rapidly
growing field of aluminum food contain¬
ers—especially in frozen and refrigerated foods—is an¬
other example of one of the
country's most important
industries preparing to utilize the unique properties of
aluminum in

new large volume
applications.
During the latter part of 1956, aluminum supp-Iy once
again caught up with market demand, thus completing

a

surplus-shortage cycle which began back in 1954 when

the aluminum

industry completed a tremendous expan¬
primary aluminum making capacity in sup¬

sion

of

port

Management

of the Korean

In

its

May, 1956, Robert J. Smith, Brigadier-General who
important role in forming the Air Transport
Command in World War II, joined Slick as President.

additional

General

war

effort.

the

had

an

the

Smith,

Federal

who

When

the

also

is

Chairman

Bank

Reserve

of

the

Board

of

of

Dallas, has improved
increased the earnings of Slick.

operations and

of

movement

Burbank,

centralized

and

Calif.,

the

company's

home

office

Dallas,

Tex., is completed in
will have the advantages of a more
to

company

national

headquarters.
& Telegraph

Univac

120

is

It

adding

a

new

communication

sys¬

computer

in

its

Accounting

The

and

ahead

year

will

expansion

in

find
the

S.

REYNOLDS, JR.

greatly reduce
possibility of another shortage period recurring and
serve
to encourage new users with
new
product
developments requiring large tonnages.
Kaiser Aluminum & Chemical
Corporation is in the
midst of a major plant
expansion program which will
substantially increase production and fabricating capac¬
ity. These facilities include a fully
integrated reduction
plant and rolling mill at
Ravenswood, W. Va., close to
major

aluminum

ot

markets, -representing a total invest¬
$200,000,000 and an alumina plant with

over

mercy, La.,

President, Reynolds Metals Company
Aluminum

records in

supply

and

consumption

1957. Total aluminum

mated at 2,550,000 tons.

expected

The

year

World
of

War

to

1956
II

fore

the

first

of

new

new

This is about 200,000 tons above

new

a

was

set

an

all-time high.^Con%

are

record.

in

which

the

unhampered.
be

With

years

develop¬
proceed

continue

what

expansion

1957
it

will

was

began.

in

be

1950.

Total

now

tivity
•

^

R.

the

S.

Reynolds,

Jr.

year

at

aluminum

Dolton,

cf
111

111.,

container
a

similar
plant
Chicago

extrusion

in

the

the

Korean

War

1

com¬

being expanded. The caustic-chlorine
at

Gramcrcy, La., is evi¬

increasing

the important field

of

interest and ac¬
industrial chemicals.

1jia'0,r development of 1956 for the

induati y

required

supplies, including
scrap, will more than double during that same
period.
Reynolds Metals Company is responsible for a signifi¬
cant part of this increase in
supply with aa.estimated
1957 production of close to
5.00,000 tons as against 216,700

are

under construction
the corporation's

has been the turning to

energy source

2V2

aluminum

acquired

An

at Columbiana,
Ohio, and the dolomite mining
Feawa'er magnesia facilities
at Natividad and Moss

p.ant

primary

about

been

Landing, Calif.,

un¬

this

in

Gra-

forging plant

food

wSha new basic refractories plant has just bee

and

dence

its domestic production. The

output

also

a

pleted

abated.

healthy balance be¬
tween supply ar.ci demand is the in¬
dustry's proven ability to increase

at

area.
At the same
time, the -corporation's
bauxite mining operations
in Jamaica are
being doubled
to a rate of
4,000,000 tons per year!
In the corporation's
chemical and refractories opera-

1957

should

facilities

Angeles, Calif., and the building of

metropolitan

a

recent

production

$70,000,000.

thorpe, Md.; purchase and expansion of
at Erie,
Pa.; purchase of an aluminum

has

promising
year of still greater supply
for all present and
prospective users
of aluminum, the market
growth of
to

over

iacuily at Wanatah, Ind.

the first since

markets could

costing

Other Kaiser Aluminum
expansions now underway or
completed during the past year include
the addition of
a ninth
pot line at the
Ghalmette, La., reduction plant,
the nation s
largest; additional extrusion presses at Hale-

plant, at Los

to be completely free
shortages and there¬

aluminum

ment

set

will

supply for 1957 is esti¬

completion of
basic production

should

also

ment

RICHARD

substantial

industry's

fabricating facilities which

associated caustic-chlorine

times

Century

of

every dollar goes toward the
compared with 41 cents for
producing them.
distribution cost, of
course, - reaches
far beyond

goods,

Inat

to

basis.

mass

A.

Vice-President and General Manager,

for their

Behind

carrier], charter and engine

According
cents

average

and

that its

clude

also

of

appearances

V

developments account for the industry's con¬
selling and development programs will
make 1957 another record year in the consumption as
well as the production of aluminum,

Pacific.

airlines

passenger

individuals

1S56, Slick Airways carried

miles

greater

an

contract

more

more

from

level, which represented
sumption requirements in 1957

Outlook for 1957
Slick

and

miles and

the 1956

•

Fleeted the addition

permitting

charter

handle

to

Europe,

Latin American and

1954.

year.

Slick

1956

in

interest

Sales

increase of 21
nine

Railway

..

million

in

progressive

Ohio

&

In the first nine months of

total

late

*
!

a

the

different sizes, shapes, textures,

many

cant period in two

scheduled

round-trip flights
flights have been

long-range financial'

undertaken

by

being featured in building panels,: automobile trim
appliance parts for exterior and interior use. In
effect, prospective consumers are being offered not just
one
metal but a wide range of aluminum metals in
and

another

and

demonstrated

purchase of substantial

national
.

February

Division.

Slick

as

are

the

a

peake
\

13

than

tem

in

growth.

air-

and

already chartered more
for U. S. students abroad.

Telephone

planning

conviction of other

26

of

DC-4's,

has

American

The

larger
before,

as

ordered for delivery in 1958.

July alone, Slick flew

Slick

January, the

convertible

in

A

international

pany.

Kent *.01

fleet

a

seven

division

new

a

Chesapeake & Ohio Railway in¬
vested
$3,333,000. and the Earl F.
Slick family, $1,667,000 in the com¬

the results of its

and
ever

larger supply is available to prospective

a

present consumers. New finishes are playing an
important role in winning key markets away from other
materials.
Various types
of color-finished aluminum

great new market.

from

The

that

well

Foreign vacation travel in 1957 is expected to reach
fantastic proportions.
Lower fares, better accommoda¬
tions abroad and the high interest in travel provides a

of the

The

W.

was

drive for new
in 1957 than

industry's

aluminum

The

markets will be more powerful

technical characteristics.

passenger miles across the Atlantic, and
14,000,000 military miles across the Pacific.

than

of

Ueit-s

needed

soon.

military

sale in December of $5,000,000 worth

10-year

tvpical automobile, for example, now contains about
aluminum as it did a decade ago.

lour times as much

These

A's,

are

000 commercial passenger

The

in¬

net

add

In the month of

Inc.
a

$317,000, compared

1956

October,

The

of

3,922

1956, Slick had

capital gain
equipment

a

airline

the

operates

DC-6

loss in 1955 of $504,000 for the same
period. In addi¬

a

routes

International

and

first nine months of

construction,

delivery of the planes in 1958, Slick will operate
DC-6 A's than any carrier in the world.

ernment

W.

six

April and five

more

the

The
situation
warrants
close
the part of the prudent investor.

DELOS

All

it

Currently,

including

the

and

failures

in

earnings desulting from increasing

costs.

attention and caution

such

will

1957

1956, Slick acquired three additional DC-6 A's and

service

Prospects

and

in

1956.

credit, rising costs and a tendency to increase inventories, results in a
greater squeeze on cor¬
porate profit margins and earnings.
It had already
created a growing problem in latter 1956 when indus¬
trial reports began to show a
similarity of increasing

1

the

D.

on

sales accompanied by

$1,000,000 in 1957.

Slick

competition for additional business volume is
extremely keen in a domestic economy that is seemingly
close to its current effective productive capacity.
This
.competition, along with dislocations between industries,
.

in

improvements

supply an increasing share of industry's rawrequirements; This is particularly evident in
transportation and electrical markets.

to

able

material

particular

his

basic metal which more than keeps pace
aluminum has been

one

C-46's.

The

; pressure

route

and

capacity, which it will have

craft,

commer¬

country's

schedules

to

five

so

complicated by

traceable to the Middle

in

experienced

the

As

with the nation's growing economy,

fidence

a

further

technician

a

Equipment

factor, and this problem is com¬
mon to
industry generally. Higher cost of doing business
—through increases in interest rates, materials prices and
labor

by

pledge to increase the annual billing from $250,000 in

In

are

activity

Perishables Division to handle fresh vege¬
flowers.
Each of these
divisions will be

its

of 1957.

-now

1956

building, with tight money influencing this situation.
Consumer spending already has shown signs of laboring
under difficulty in registering new gains.
Nor can ex¬
penditures for new plant and equipment, although ex¬
pected to remain high, be depended upon to provide the
boost

Alabama,

specialized customer needs. Early in 1957,
Sky-Van service for moving household

a

a

and

more

cial

same

tables

a

there

1957

1950. Additional

in

Delivery of two big four-engine DC-6A air freighters

is
a
greater demand for oil and ships,
steel and steel products, and an in¬
flationary influence on commodity
prices, resulting from the Suez Canal
stoppage.
Not

in

tion

by the spring of 1957 will greatly increase its present
fleet. For example, from one customer alone, Slick has

spending

1957

Also,

add

goods and

New

defense and foreign aid now are ex¬

pected

will

it

Thursday, January 17, 1957

...

capacity, now under construc¬
will enable the company to step up
production rate to the 600,000 ton level by the end

tons

to

continue Slick's program of eliminating circuitous
iii favor of more direct on-line service.

public
national

and

handle highly

Chronicle

transportation

on

air change was reduced

minimum

the

field.

other

and

anticipated

are

its attack

already begun

1955

Now it is imperative to cut the cost of ground trans¬
portation accordingly. Slick plans to make major revi¬
sions in pickup and delivery charges next year. In addi¬
tion, Slick engineers are studying new equipment and
methods of ground handling.
Slick plans to expand its program of sales experts to

staffed

Improve¬

ment in farm income is also likely.
Higher government expenditures for

highways,

has

In

$1.
t

the

of

Chairman

well

Commercial and Financial

The

(300)

for

the very

large

coal

U. S. aluminum
as

amounts

an

of

economic

electricity

b,\ the aluminum reduction
process.
This de¬
velopment was spearheaded
by Kaiser Aluminum &
Chemical

Valley

Corporation in its selection of the Ohio River

an aluminum
Production site.
In addition to
coal, the region also offens the
advantages of close prox¬
imity to major
aluminum-using markets, which help to
offset
constantly rising transportation .costs. The com-

as

Number 5604

185

Volume

The Commercial and Financial

. . .

able to move materials from mine to fabri¬
a direct line over a short, all-water route
terminating at the center of a market which accounts for
70% of U. S.-aluminum usage.
For Kaiser Aluminum & Chemical Corporation, 1958
marked completion of the company's first 10 years as
an
aluminum producer. During this period the com¬
pany's investment in property, plants and equipment has
«rown from $30 million to $354 million, working capital
from $6 million to $138 million, total assets from $27
million to $489 million and net worth from $11 million
is thus

any

cating plant in

CaSh dividends paid to stockholders

million.

$223

in

aggregated $50,835,000.

have

sions in many sectors of our
economy later in the year
when the full effects of
Europe's dislocations will be
felt. Curtailment and/or cancellation of orders for

goods

will result in

downs

ROSENSTIEL

supply¬
Offsetting this is the need to step up
in

companies

As

to

our

1957.

year

under

local

own

substantial, will,

outlook, real estate sales, while
believe, show a further decline for

we

Residential

900,000

if the

starts

the

for

country may
continues.
This

trend

present

further decline in the number of starts under

a

roughly 20% under the year before.
residential building will be more than
offset by other types of construction despite the higher

optimism about the immediate

has replaced the doubts of the U. S. liquor in¬
dustry as to whether it would ever share in the nation's
current prosperity. After six years of decline, the in¬
dustry's sales and earnings in 1956
future

of construction costs.
This implies a relocation
employees from the residential housing field to other

construction lines.
An

increase

to

5%

in

the

rate

interest

veterans

on

moderate improvement for
the second year in a row. Sales for
1956 are expected to exceed 215,000,000 gallons, up from 200,000,000 in

loans, if approved by Congress, should arrest the decline
in housing starts by easing the
stringency in the supply
of mortgage money, some of which is
being withheld
from the mortgage market by reason of rate.
However,
many institutions either have reached or are reaching

1955.

their mortgage loan limits.

showed a

should continue
into the new year if the industry is
eiven a reasonable atmosphere
on
rising

The

curve

The

regulatory policy,
particularly with respect to such
grossly unfair burdens as the Fed¬

$

able

k

$10.50 a gallon on
the tax force-out
limits the bonding of

which

law

law.

force-out

tax

the

ket.

Lewis

S.

Rosenstiel

claiming

it

Every other country allows a distiller to keep his

,

reduction

to

$9

relief in the form
gallon from the present $10.50

a

figure. The tax was increased from $9 to the present
figure in 1951 to meet increased Korean war needs. The
law raising the rate also called for a return to the $9

figure within a year after the end of the hostilities.
These

rates

with $1.10
excise of $3

compare

Repeal in 1933 and

an.

a

a

Others

Many investors

seizing present

are

switching into more lucrative loans. While
this selling involves taking substantial losses, these can
be partially or wholly offset by tax deductions, increased
income over a few years, or both. The market for gov¬
ernment bonds reflects the urgent need for money. Gov¬
ernment issues have dropped to new lows and may dip
to

aye

still lower levels before
As

a

stabilization

gallon following
gallon in 1942 be¬

many

We need more real savings to
the current trend.
I

practice self-denial.

help

reverse

purchase

ofjiluxury • products 'are partially
responsible for the further improvement of the liquor
business in 1956. The spectacular rise in vodka sales and
the solid increases marked up for both gin and brandy

To'sum up, industry is

expanding its programs.

notable

examples.

eral, state

and local governments are

programs.

These

There

down

or

sales, and
gifts. The
popularity of the decanter as a year-round gift should
grow and provide a further sales plus.

1957

are

an

the trend,

New trends in packaging have also helped
decanters are increasingly in favor as holiday

factors

along

Fed¬

Our

moves

a

demand for cap¬

business slow¬

few, if any, signs of a

rates

will

not

ease,

barring

granted and those granted
increases and

carry out
required is

Regula¬

delay and often

pre¬

adjustments of our
prices to meet rising costs. Outmoded
necessary

restraints

prevent

competitive

earnings. And

prove

missions

the

trimming

making

would

some

state

reluctant

too

are

from

us

which

rates

to

im¬
com-,

allow

of

costly
passenger
public no longer
wants.
We hope that more realistic
recognition of the relation between
adequate earnings and adequate .serv¬
train

service

the

ice will be evidenced in future regu¬

lation.

b

However,
cial

'

to take

as

we

advantage of

to offset

can

(1)

immediately ahead

The rise in the U. S.

(2)

An

increase

in

population.
and a search

"dining out"
from home.

rising costs and to continue

high standards of transportation service.
Capital expenditures in 1956 for needed improvements
amounted
Jor
of

new

to

than

more

freight

electronic

new

$130 million.

Huge

(5) Stabilization
price brackets.'

in

brands

of

established

type

facilities and improvements

yard

In 1956, Southern

freight

order,

on

ordered
owned

not

for

Pacific acquired

more

To' increase

counting another 2,000 refrigerator cars
Fruit

Pacific

Company,

Express

Continuing

into

construction of
sea.

Enough

nine

Great

a

work

on

Southern

a

vital

solid causeway across that inland

and

gravel will be

combine

to

reduce

individual

the

during

handling

DANIEL

the

coming

Southern

year,

Brooklyn, New York
The year 1957
opened its eyes on the tightest money
market in
many decades.
Each quarter of 1956 wit¬
nessed

has not

a

demand for capital which
yet shown signs of leveling off.
Business is

steadily
as

mounting

good,

With

We

West

expect the
and

quiring

eight-state territory we

Southwest

continued

to

From

a

maintain

substantial

meet the transportation

its

capital

needs of this

TO

THE

PAST

production and reduce costs, Brown Company in the
has invested more than $36 million in plant improve¬

same

period book value of the

,

common

stock

rose

from

• -

its vast New England

woodlands, abundant water

power,

its laboratories —plus the creative

schools,
of many
kinds and it is easy to understand
why competition for the dollar has
pushed interest rates close to the
ceiling. While current interest rates

BROWN @ COMPANY

for

other

state

tinued progress

have

forced

pansion
Daniel T
,

of

R«

roads,

new

improvements

deferment

programs

and undoubtedly

great many undertakings
national and local interest that simply cannot be put
there

aside

An

any

are

a

longer.

international

pressure,




the bottling up

paper

Company looks to

and

paper

con¬

products.

1

Mills: Berlin,

Gorham, and North Stratford, N. H.; and Corvallis, Ore.

of some ex¬

deferment of many more

will force

in the field of pulp,

Executive and General Saks Offices: 150 Causeway St., Boston 14, Mass.
-

of the Suez

NIBROC

TOWELS & TISSUE

SOLKA

PULPS •

•

NIBROC PAPERS • KOWTOWLS • BERMICO FIBRE PIPE • ONCO INSOLES

SOLKA-FLOC •

re¬

expenditures

to

.s

minds of its research scientists-Brown

municipal

iij the

growth,

area.

equal 1956.

all types of construction,
residential housing, are on
the uptrend. Add to this the Federal
Highway Program and evidence of
increased outlays already approved
Almost

except

serve

rapid

traffic standpoint, volume of freight handled in

1957 should about

newly modernized mills and

underway.

Pacific now

2,000 units.

Ms off to the future

good, in fact, that multitu¬
expansion
programs
are

so

dinous

build *

engine units,,brining .its.diesel fleet to more than

more

ROWE

T.

to

90% of its traffic by diesels, will add 8t»

over

failures at the retail level.

President, Kings Highway Savings Bank,

moved

The fill will provide a

Pyramids of Cheops.

artery of national defense on our Overland Route.

And

$2.88 to $21.24.

increase in the
purchase unit should
number of industry business
expected

the

Pacific's

permanent roadbed greatly strengthening the crossing as

dollar

of

jointly

$49 million project which entails

a

new

rock

is

1957

Fill,

ments and additions to timberlands.

value

a

subsidiary.

The installation of self-selection and self-service at
the retail level is
expected to help check rising operating
costs. This reduction and the

Over the

than 3,000 new

inflationary

OFF

last 10 years

in

As of Jan. 1, 1957, we had 10,869 new cars

cars.

for

and

went

communications, signaling and roadway.

Continued

HATS

sums

increased dieselization, construction

cars,

by the government.

entertainment away
(3) A continued trend to quality merchandise which
will help the
industry's financial position.
(4) Continuing expansion of self-service and selfselection which, in many areas, is just starting.

finan¬

our

technological

as many

are:

adult

Russell

J.

continuing within limits of

we are

resources

Donald
.

Other factors that should increase sales next year and
in the years

Pacific

ability to

several sides.

on

processes

vent

increase in the supply of money to reverse

consequently, it is our view that for the year

money

financial

hampered
tory

expanding their
the international

with

situation have created an unparalleled
ital.

not been

not been sufficient to offset wage
other costs, net income has declined.

Great Salt Lake

occurs.

economists and noted persons have pointed
importance for people to save con¬
siderably more
money.
Disposable personal
income
should show a steady rise during the year, but it is
estimated that personal expenditures will -rise almost
as much.
In times such as these when people enjoy good
incomes and there is little unemployment, it is difficult
to

More aggressive industry merchandising and increased

are

rates.

Company

1955, but because some requested freight

over

avail¬

return

War II increases.

fore World

consumer

income

out, it is of prime

The industry is also pressing for tax
a

The

to
improve bond
portfolio income by
switching out of low yield bonds to higher income bonds.

spirits in bond until he has a market.
of

brought

has

new

coupon

up

increases have

have

opportunities

discriminates against the U. S. industry and is
in l'avor of foreign distillers. Only the United States has
a law that forces a distiller to remove spirits from bond
at the end of eight years whether or not he has a mar¬
that

on

lower

liquor to eight years. |
Schenley has been a longtime foe
of

capital

for

issues has the effect of loosening funds now
frozen in older prime investments bearing substantially

distilled spirits and

rate

advances

demand

yields will -continue to rise.

rate of

tax

eral

country-wide

bond yields to a figure that is attracting funds ordinarily
reserved for mortgage investments. It appears that bond

and

legislative

were

were

trend

of

Pacific

Gross operating revenues in 1956 for Southern

the capital improvements

ing in Europe.

last year which
The decline in

Schenley Industries, Inc.

feeling of guarded

unemployment

RUSSELL

J.

D.

President, Southern

exports of fuel and other necessities to alleviate suffer¬

would be

Chairman of the Board, and President,

A

inventory accumulations, production slow¬

some

ing export items.

the

,.,

and

105

(301)

Canal, still further aggravates the situation. The Suez
incident will undoubtedly have unfavorable repercus¬

be

S.

LEWIS

Chronicle

CHEMICALS • HIGH GRADE LUMBER,

VENEER AND PLYWOOD

on

page.

106

106

Continued from page

105
SALVATI

E.

R.

Coal Company

President, Island Creek
bituminous

America's

coal

industry

defi¬

now

may

nitely be classed as a "growth industry." This is some¬
thing new in the picture. While coal has always been
regarded as supplying a basic need—the evergrowing
market for energy — it has in the

35

past

of

shares

their

its

while

the

their

run

It is

course.

growth in demand can become
enough to strain the abilities
coal industry and of trans¬

profit return.
mechanization

of

of

operations both

under¬

ground and aboveground, the capital cost of developing
coal mines has risen

sharply. The greater quantities
of coal consumed by large enterprises have made large
output mines desirable. These two factors combine f to
make larger corporate organizations necessary and are,
therefore, promoting mergers,' consolidations, and pur¬
chases. The current trend toward larger scale organiza¬
tions is both necessary and healthy.
Our company is recognizing the trend toward larger

new

corporate units. In the last two years
three

major acquisitions. It is
will continue to grow

can

be made. It is

sake

or

it has made

so

expectation that the
desirable acquisitions
policy not to grow merely for the

company

our

my

of

we

by

can,

existing

our

stock.
For the year

1957 I

only express optimism.-1 have
that we in Island Creek see a

can

hesitancy in saying
bright future for the coal industry and that we intend
to plan and work for an increasing share of that future
no

for Island

The

Creek.
ahead

task

satisfy

is

not

an

easy

growth demand such

a

can

encountering difficult problems. Like other coal
producers, Island Creek is faced with the problem of
finding the capital with which to finance its expansion.
in

management

profits

as

a

naturally striving for increased
providing a large part of the

are

of

means

needed capital. As a "career
company" dedicated to coal,
and as a leader in the coal
industry, we of Island Creek

face

the

future

BRIG.

with

optimism

GENERAL

and

confidence.

DAVID

SARNOFF

Chairman of the Board, Radio Corporation of America
For

the year 1956, business volume of the Radio
poration of America will total

approximately

figures

Cor¬

$1,125,-

37-year history. While final
for the-year ..are not
yet

available, and are subject to final
audit, it is estimated that profit,
before
be

Federal

about

$40

Income

$80

after taxes

Taxes,

million.

is

Net

estimated

million.

to

will

profit
about

preferred

After

be

divi¬

dends, this is equal to approximately
$2.60 per
in

$3.16

caused

labor

of

tubes

declared

are

higher

the

were

costs

the

and

sold

market.

is
of

lower

in

a

highly

Dividends

1956

year

to

$1.50 per common
shares outstanding is

totaled

83,000 persons,
employed overseas.

and

the

are

business

the

share.

The

and

of

number

RCA

that

em¬

number

provements

RCA

and

expansion

is

for

20%

of

the

total

nearly

well

to

$60,000,000

on

to

retard

serve

do

A

Others
the

their

a

new

were

made

progress

short-term

industry there

art

of

and

and-white TV for broadcast

purposes.

,

facts

of

the

situation

tion

were

are

'

.
.

and

black-

•/.../•

compatible

color

and invention.
RCA engineers and merchandisers
studying the commercial aspects of these inventions,
,

of

which hold great promise.

simplified large-

TV

receivers

Electronics

the

for

1955.

have

sold

airborne

year,

and

delivered

sets.

During
color picture
The

this

102,000

period

of

these

also

we

sold

21-inch
and

electronic

color

total

loss

net

(after

Federal

This

is

certainly

Taxes)

RCA's

for

profits in the
Such

business

a

of

all

RCA

that

promises

color

than

more

position

established

was,,

research

following

airlines

and

electronics

to

as

a

contribute

in

the

enter

New

Year

the

1957,

bring?

the promise of the art and

of

and

is the most vigorous
Corporation's activities

engaged.

•

and

people

more

question

will

RCA's

is—What

buy

color

industrial
circuit
ment

and

will

will

sets

objective

their

competition
and

well

as

as

for

closed-

to

and

sports,

well

as

merchandising. And because of the
1956,

in

it

seems

manufacturers
field
in

before

sales

will

long.

of

follow

to

Competition

#color

as

that

expect
and

us

entertainment,
advertising and

progress we achieved

in

enter

sets

goal for color television

some

the

color

will stimulate
growth of the industry.

accelerate
RCA's

reasonable

other

color

models, of

sponsorship

its

of

fields

we

are

competition

on

its

invest¬

employees

responsibilities

and
the

to

Electric

Corporation

new

highs in

1957.

The

year

will

un¬

manned

and

product

^

unmanned

featuring electronic systems *
fantastic

ago,

only

will -.require,

a

.few

years

servicing; -testing.%

•

and component

equipment combining
the very best in modern
design and V
performance.

:"V

As a leader in its
field, Consoli-,.
dated Diesel Electric
Corporation has

produce

and sell 250,000 color sets, to double the number of
color

seen

the air, to attract sponsors to the new and
medium, and to encourage others in the

programs on

productive

the

return

'J aircraft,

and

to

meet

.'.deemed

and

is

all

v;research and, development. Advanced

TV

programs

in ; 1957

in

healthy sign

SCIIAFLER

Diesel

precedented. emphasis .upon

all "fronts

on

I.

•further disclose a:continued and

.

news

Consolidated

siles.-shouldcsoar to

theatre-TV, sales presentations, and inter-depart¬
shopping.
■

education,

a

industry in which

is

reasonable

a

is

Sales of aircraft ground support and
auxiliary services
elosely allied to the aircraft industry's anticipated record
output this year of commercial aircraft and guided mis-

use¬

store

The year 1957 will witness acceleration:
of
color
TV
as
a
new
dimension
in

this

the public.

President,

broadcasting; for example, medical,"
TV

improvement of

homes.

fields of

many

earn

NORMAN

be broadcast

for

and

the

•

educational

and

will, bring increased

Also, color television will expand in
fulness in addition to

nation

color programs

the

public, and to the pre-eminence of this

There
of the

Outlook

I believe that it

color television—more

to

way

States, to the progress of

country in international communications.

sponsors could be attracted to the new medium.

we

possible

every

ment, to safeguard the interest
stockholders and to fulfill its

As

for

Objectives

vertising

TV

programs

radar

1he

successfully, to

Color

Weather

smaller

the need to build up a reasonable circulation before ad¬

•

control.

engineering

results:

and

engaged in

services to

tue inaiGii/
for the organization that pioneered.
In color television, as in
black-and-white, there was
the additional requirement to
provide programs on the
air before sales of
receiving sets could be

V

traffic

industry generally, to the advance

in

made,

is

strives

produced handsome profits that
for the earlier losses. Moreover, a

up

leadership

air

national security of the United

years

made

of

and

fullest possible development
science, art and industry. We are
dedicated to continued
pioneering, and research, and to
the
engineering and production of instruments and
systems of quality, dependability and usefulness.
RCA

iof

The
first year's
efforts
to
tool
up
and
mass
produce automobiles, or black-and-white television sets,
and bring them to the market also entailed losses.
But

subsequent

electronic

new

weapon

systems,
jet aircraft, fire-control systems,

RCA

RCA

substantial

field.

the

missile

planes,
transistors,
electronic
computors,
stereophonic
sound,
increased
popularity of high fidelity phonograph records, expanded
traffic over RCA's global
radiotelegraph network and
extension
of
TEX, RCA's international customer-to,customer teleprinter exchange service.

"starting up" expenditures are inescapable for
who would pioneer and lead the way in a new

anyone

the

commercial

future.

near

continued

approximately $6,900,000.
expenditure to lay the

reasonable

a

various

guided

for

Electronics for Home and Industry
produced

approximately $58,000,000;
After accounting for this
year's costs of color develop¬
ments and improvements,
the extra costs of training
personnel, of advertising and promotion campaigns in¬
volved in launching a new
product and service, and
the
costs
of
providing color programs on
the
air,
the

Defense

communications

,

to

activities for 1956 amounted to

controls

For

undertook

delivered

tubes, color components and equipment.
factory billing price of all these color sales

amounted

its volume of business increase

sharply

each

opment

industry to enter the field.

of

ground

after,

profits

should

of

a

new

television
In

every

in

order

to

pioneering

are
those who prefer to see the other
undertake the risks of initial
investments and do
the spade work while
they watch and wait. Sometimes
they even try to impede the progress of the

pioneer.

expect,

on

this

in

firmly

a

greater

convinced
and

profitable

a

medium

operations

all

that

branches

and

advertisers.

color

of

for

broadcasters,

dealers,
The

service

National
National

ganized

in

the

year

the

since

first

devel-'"

its

-

.

multi-purpose'

and

future

of

a

the

manu¬

rewarding

television

is

Broadcasting

Company

Broadcasting Company, which

1926

as

a

service

of

RCA,

was

or¬

observed

its

Thirtieth

Anniversary in 1956. Its avowed purpose was
provide the best programs available for broadcasting
in the United States," and the
hope was expressed that
every event of national importance might be broadcast
"to

throughout the nation.

The NBC has steadily adhered to
that premise both in radio and television.
Eight national

support units for jet aircraft
Con Diesel's 1957
produc¬
include ground servicing

*
Norman

1.

Schafler

will

starting equipment for supersonic

aircraft

such

us

United

States Air Force F-100,
F-101, F-104. and
F-105; test equipment for General
Motors, Qlenn L. Mar¬
tin, General Electric, Holley Carburetor, and
others; and
generator sets for primary power in
military radar in¬
stallations, and in ground control for commercial aircraft.

will

to

color.

The

and

color

television

interesting

more

business

distributors
for

in

1950.

tion

substantial.

is

facturers,
in

from

be

people interested

the promise

we

volume to earn, during the second half of
1957, a modest
profit on the color sets and color tubes we sell. There¬

public,

fellow




color

use.

A home ."Hear-and-See'^ magnetic tape player
which
plays television programs^ or phonograph records which
are recorded on magnetic tape, so that they can be
seen

all

21-inch

of

RCA

by those whose objective is

color

f

.magnetic tape recorder for both

sold;

of facilities.

recall

of

C

applications including:

During 1956 RCA
projects related
to

im¬

Television

by well-intentioned

progress

industry.

looking ahead to 1957, it is helpful to consider what
To illus¬
trate, on October 1, 1956, RCA scientists demonstrated
the following
new
developments and several unique

During the remaining few months of that
a small quantity of these sets was produced and
the major portion was sold in 1956. To date we

TV

that
throughout the past year
many statements have been
made publicly
about the
status of color television in the United
States. Some of
these were made
in the

actual

introduced, for the first time,

provide
Color
It

In

Accordingly, here is the record, and here

Barring unforeseen circumstances,

accounted

spent

Research Achievements

.

current

1956,

*

transpired in research and engineering in 1956.

facts.

RCA

Fall

the

of

public.

screen

to

backlog of Government orders
is approximately
$325,000,000.
During

record

made

to

amounted

13,850,000.

Government
volume

by

year

(preferred, $3,153,000; common, $20,828,000).

amounts

8,000

for

world-wide basis.

a

.

"

Com¬

Federal

the

on

quality of its programs and financial
results, NBC made its thirtieth year the greatest year
in its history.
•
*

•

common

ployment

profit this

materials

competitive

This

in

mainly
and

sets and

$23,981,000

com¬

earned

prices at which black-and-white TV

Sarnoff

stockholders

This

share

a

1955.

*<The decrease

David

share.

common

with

pares

so

1946,

as'

before

Commission, "We are not making and
plan to make any black-and-white receivers."

the

if

000,000—an increase of about 6% over 1955 and exceed¬
ing the billion dollar figure for the second time in
RCA's

late

in¬

as well as heard through standard television receivers.
TV.
Today, we hear arguments in-: some
A room cooled or heated by electronic panels, opera¬
quarters that it will be years before color can reach the
stage of profitable operations, etc. Moreover, some- other ~ ting in complete silence and with no moving parts. The
irresponsible statements have been made that in its ■ system either cools or heats simply by reversing the flow
of
efforts to establish and promote color television as a
electronic; current.
Also
a
noiseless
electronic
new
and regular service to the public, RCA has, this
refrigerator with no moving parts.
./--■■/->"'
:
'
year, poured untold millions of dollars into this under- • ■/.. An electronic amplifier of light which amplifies by
up to 1,000 times the brightness of projected light; and
taking.
an application of it in the form of an
Although it is unusual for a private corporation
amplifying fluoroscope for industrial X-ray use.
r :
V ■■"•VkV
engaged in a highly competitive enterprise to disclose
In time, these developments will find their
figures relating to a new segment of its business, I feel,
way to
the market place.
They will serve the public, benefit
nevertheless, that the interests of RCA stockholders, and
the industry generally, would be
industry and open immense fields for further explora¬
constructively served

without

We

As

testified

company

foundation

No industry

one.

that projected for coal

as

succeed."

never

same

as

growth, but only where we think
doing, increase the value and earnings of

so

will

radio

Measured by the

company

publicly that "television is economically
it

broadcast

will be

as

us

the

second

auguration of President Eisenhower on January 20, 1957,

"Teleasserted
unsound that
an officer of

labelled

one

by

The

,

R. E. Salvati
portation facilities to meet it.
To provide a capacity sufficient to
supply this demand, and at the same time replace ex¬
hausting mines, will require billions of dollars of new
capital—dollars which will be justified only by reason¬

Because

of

TV.

on

.

the

able

head

broadcast

been
been

have

.

great
of

industry who
the

five

and-white

lief, shared
by many other coal
executives, that from 1954 on the
trend is definitely upward, and that
the

the

and

and

Thursday, January 17, 1957

...

campaigns have

network

But several years later, after RCA had demonstrated,
beyond peradventure, the great success of TV and that
the public embraced it eagerly, these same folks jumped
on the bandwagon and
"reaped where they had not sown."
History often repeats itself, and I suspect that the
same pattern
will emerge in color TV as did in black-

be¬

my

visionaries"

not

has

constantly decreased. The result has
been that, except for war and post¬
war
periods, coal has lost position
absolutely as well as relatively, but
we in
the industry think our losses
have

in

those

.were

munications

energy

share

own

political

For RCA, which has pioneered in world-wide radio
communications, in radio broadcasting, in black-andwhite
television, in electronics and. compatible color,
such
man-made roadblocks
do
not
represent a new
experience!
We recall, for example, that when RCA
pioneered and established black-and-white TV, there

the

its competitors

seen

years

increase

market

Financial Chronicle

The Commercial and

(382)

'

Con

Diesel

has

consistently emphasized new product
development. This emphasis was never more
apparent nor important than it is
today. Thus, in Con
Diesel's case, fully 15% of our
employees are engaged in
research, engineering and
engineering support activities.
As a result of one of our
research efforts, Con Diesel is
today pointing the way to a new concept of
moving com¬
mercial jet transports on the
ground without the noise,
research and

beat and blast of
jet engines.

recently

to

the

Air

This concept was presented
Association of America,

Transport

Continued,

on

page

108

Number 5604 ,•.

185

Volume

The CommerciaVand Financial

.

before

the

other

The
and

The

Of

is

company

now

serving

Gas Stock

52%

the

been

debt

present

The
of

48% equity.
account of

and

plant

$26 million, some 58%

has

last

ten

constructed

in

the

were

quarters of the year.
to the cash dividends,

Market

on

largest

stock

common

made

on

offering

secondary

months

in

was

Jan. 15 with the offering

964,454 shares of common stock
of Arkansas Louisiana Gas Co. by
of

group of underwriters headed by
Eastman Dillon, Union Securities
optimistic re¬ & Co. and Stephens, Inc. The stock
per
more
garding future trends in the South was priced at $22 per share. The
than
doubled.
During the past
Jersey area, particularly along the shares, comprising 21% of out¬
three years over 80% of all homes
Delaware River Valley. This river
standing Arkansas Louisiana Gas
built near the company's mains
is now said to be the largest fresh
latter company, During 1950-55
common
stock, were owned by
have been equipped with gas for
the company acquired four neigh¬
Water "port" in the world.
The Tri-Continental Financial Corp.
space-heating, cooking and water new Walt Whitman
boring gas properties, enlarging its
Bridge
in
Arkansas Louisiana Gas, is an
heating.
Saturation
on
spaceSouth Philadelphia, together with
operations. It now serves 78 com¬
integrated natural gas company
munities in an area of about 2,000 heating is ony 24% and grows connecting highway facilities,
engaged in
the production and
about 4% a year. The saturation
should give a further impetus to
square miles in the southern part
distribution of natural gas in Ar¬
of gas ranges is now about 90%,
suburban
of New Jersey, with an estimated
developments and at¬
kansas, Louisiana and Texas.
It
water heaters 62%, refrigerators
tract
more ^industries
to
South
population of 427,000. The latter
also operates extraction plants for
8% and gas dryers only 4%. Over
Jersey. Favorable tax rates, ac¬ the processing of natural gas and
figure compares with 301,000 in
85% of the hotels and restaurants
1940, a gain' of over 40%, and
cessibility to large metropolitan engages in the exploration for and
in the company's area now use
markets
and
ample supplies of
growth in the area continues at a
production of gas and oil. On Oct.
gas for cooking, and other sales water
and
rate
above
state and national
gas
are
influencing
over

18,000 heating customers

2,600

in 1948, and annual
residential / customer

vs.

sales

to commercial customers have in¬

averages.

served is well diversi¬

The area

substantially.

creased

sales

also

are

Industrial

important,

large

years.

of

Nov.

21,

paid

31,

The

has

stock

been

gas

selling

re¬

and

1956 the company

The

1956.

on

company

Babcock Director
J.

R.

as

Reynolds

Com¬

Tobacco

has announced the election

pany

director

a

cock,

of

senior

a

brokerage

and

Charles

cock

will

board

of

take

H.

Bab¬

partner of the
investment firm

of Reynolds & Company.

the

Mr. Bab¬
on the

place

of

directors

W.

T.

Smither, who is retiring on Feb. I.¬
Mr.
Babcock was one
of the
three

of Rey¬
when that firm

partners

original

nolds & Company
was

organized in 1931. For

ber

of

he

distributed

was

years

prior to

a num¬

that time,

associated with the Guar¬

Company in New York and
Philadelphia. He is a director of
Mercantile Safe Deposit and Trust

anty

151 communities
ehvirons, having an estimated

retail in

at

stock divi¬

distributed

was

also
10% stock dividend late in

a

a

industrial companies.

many

10%

In addition
a

1955 in addition to cash dividends

is

company

share

paid during the year.

,

The

a

paid in each of the first three

dend

conservative,

about

Gas was formed
in
1947 by the merger of two
wholly-owned
subsidiaries
of
Public
Service Corporation of
New Jersey, the stock being dis¬
tributed to stockholders oi the

is simple

dividends of 25 cents

and

Arkansas Louisiana

increased

structure

capital

about

South Jersey Gas Company
Jersey

have

prices

present ratios
(including short-term notes) being

By OWEN ELY

South

whereas

War

Korean

fuel

substantially.

Public Utility Securities

107

(303)

Chronicle

the resort business in
cently at 25 V2 on the Philadel¬ population of 1,000,000.
Company, Security Life & Trust
purchasers of gas including dutruck and poultry
phia-Baltimore Stock Exchange,
Operating revenues in the 12 Company and Piedmont Publish¬
Pont, Armstrong Cork,
Owensand based on the current dividend
farming, and light industry. In¬ Illinois
months to Oct. 31, 1956 amounted ing Company, Vice-President and
Glass,
Seabrook Farms,
rate of $1.40
the yield approxi¬ to
dustries or their products include
$54,767,757, of which $42,891,313 Treasurer of Z. Smith Reynolds
Owens Corning Fibreglas, etc. The
mates 5.5% vsogn industry average
garment making, petroleum re¬
were
derived from
natural gas Foundation,
Inc., and
President
large
industrial customers
buy of
5.2%.
President
Kendall
fining,
dyes and
paints, glass, both firm and interruptible gas
sales, $10,120,680 from extracted and Treasurer of Mary Reynolds
recently stated,
"I have every
steel,
asbestos,
cement,
plastic and there
Babcock Foundation, Inc.
js a ready market for reason to believe that the Board products and $1,755,764 from other
products and large scale proces¬ interruptible
gas
at
profitable of Directors will increase the rate sources. Net income for the period
sing of farm products (Seabrook
was
$6,901,344, equal to $1.50 on
rates, especially in view of recent of
J. F. Conlon Opens
payout as earnings increase." the
Farms, etc.).
4,599,945 common shares cur¬
increases
in
prices of coal and
LAS VEGAS, Nev. — John F.
There is relatively small seasonal oil.
(There is some conjecture that rently outstanding.
Some
gas
is sold to New
Conlon is engaging in a securities
the
rate
may
be raised at the
A dividend of 30 cents a share
fluctuation in the number of cus¬
Jersey Natural Gas Company for
next
meeting
around
Feb.
25, was paid on the common stock business from offices at 727 South
tomers served in the resort area. resale.
although the last increase was during the fourth quarter of 1956 Fifth Street.
Active customers in August totaled
The company began to buy gas
made
last May.)
The company
75,000, dropping only to 73,000 in in 1951 from Transcontinental Gas
earned
$2.12 in the 12 months
October.: Atlantic City is a yearPipe Line, but was unable to ended November, and Mr. Ken¬
round
resort,"" catering to many obtain all the natural gas required
■ym
dall estimates 1957 earnings in a
conventions, and only about 2,000
for peak loads and for potential
range of $2.20-$2.25. In 1958, with
customers close their homes dur¬
industrial sales. However, late in
five million cf additional gas per
ing the winter.
;
' '
1955 the company obtained a sub¬
day, a further increase in earnings
Prior
to ; 1951
the .». company stantial increase in the amount of
seems likely.
At the recent price
manufactured
carbureted
water
gas and this was further increased the stock sold at about 12 times
gas,
which
greatly- restricted recently, so that it is now getting
earnings vs. an industry average
space-heating and industrial sales. over twice the initial amount, and
of 13.
Advent of natural gas in 1951 pro¬ another
increase is expected ir.

fied between

City,

Atlantic

,

vided

considerable

stimulus,

re¬

ducing costs and increasing supply.

Heating; value
twice

over

that

of
of

the

gas

being

manufactured

Manufactured

1959.

and

stored

gas,

are

gas

propane,

available".in

emergencies.

Household Finance

Under the original contract with
Transcontinental, rates were fixed

Debentures Offered

.

gas,

effective capacity of the dis¬

tributing
Rates
to

system

were

doubled.

was

reduced- about

10%

in¬
amounts
sales and

promote space-heating and

dustrial sales, and larger

at

28<? and this cost rose

340 two years ago.

practically

.

to about

It has remained

constant

since

then

underwriting

An

group

headed

jointly by Lee Higginson Corp.,
White, Weld & Co. and William
Blair & Co., on Jan. 15 offered

expected
for seme time. Due to operation publicly
an
issue of $30,000,000
advertising. v "
:
Finance
Corp. 4%%
of certain rate adjustment clauses Household
Gas
sales
increased
from
1.3 and negotiations with industrial debentures, due Jan. 15, 1977, at
billion cf in 1948 to 8.2. billion (on customers, the increased cost of 99.03%
and accrued interest, to
a
camparabie -basis) ,'in 1955; Land
The of¬
gas had only , a minor effect on yield 4.70% to maturity.
revenues from $3.7 million to an
fering was quickly oversubscribed.
residential -bills,
and - the com¬
estimated

were

appropriated

for

and

no

increase in cost is

$11 million in;1956 and
8 million in 1957,"-" pany's ' rates

•s~.v

are

still slower than

e /..*•.

Household Finance will use

the

proceeds from the sale of de¬
bentures
to
reduce short - term
net

and

loans

bank

to

provide addi¬

tional lendable funds.

debentures

The

call

optional

will

be

non-

The initial

10 years.

callable for

starting

price

on

1967 will be 101.
The
sinking fund is calculated to re¬
tire 66%% of the issue prior to

Jan.

15,

maturity.
Finance,

Household

incorpo¬

to a
established in 1878. Gen¬

rated in 1925. is the successor
business

headquarters are in Chicago
total of 800 consumer loan

eral
and

It takes cable to carry

operated in the United
States and Canada.
On Sept. 30,

offices

are

total of $518,670,529 was
outstanding
in
customer
notes
1956,

a

receivable,

•.

.

:

And

>

■

.-

,

the

In

10-year

to

1955,'- total
operating
increased from

1946-

revenues

$23,930,055
$97,133,643, and net income has
risen from $5,669,090 to $16,877,670.
For the first nine months

A

,

COLUMBUS CIRCLE

26,000
,

may

sq.

ft. per floor; ;

divide

Parking within building

ft'

.

,

fulfill."

there's

a

simply putting

lot

more

some

wealth of scientific

involved in making cable

insulation

on a

piece of wire.

research has preceded virtually

significant cable development, and then it usually
knowledge obtained through years of practi¬

every

to

takes all the

operating
revenues
amounted to $85,146,758 and net
income $16,606,886.
of'

1956

Unexcelled transit;
incl. 3 subway lines

•

as

have

10

'*

America's homes and industries use electri¬
Rome Cable Corporation will have a vital role

long

You see,

than

period

as

cal power,

representing 1,594,903

loans.

to the consumer

power

a

Form Home Loan

Assoc.

111. — Home Loan
Associates has been formed with
offices at 7 South Dearborn Street

developments into use.
independent wire, ca¬
ble, and conduit manufacturer-has contributed in full
measure to both the development and utilization of new
cable ideas. We plan to continue doing the same in the
future. Rome Cable Corporation, Rome, New York.

cal experience to put
Rome Cable

these

new

Corporation—as an

CHICAGO,

Full

Renting Office

on

premises JU 2-1840

commission
to

to engage

in a securities business.
Hazen, Presi¬

cooperating
,

or

295 Madison Ave. MU 5-3000




Officers are Ben H.

brokers

JO

CABLE

ROME

dent; Walter H.

dent;

and

Dreier, Vice-Presi¬
Louis W. Grant, Jr.,

Cpprpfarv-TrpacnrPt'.

COR

p

O

R

A

T

I

O

N

Volu

Financial Chronicle

The Commercial and

103

Thursday, January 17, 1957

...

(304)

Con
Continued

frcm

106

page

occasioned

has

in

field

the

generating equipment, our engineers
recently a unique, completely automatic

of

Irave developed

application by

unit which recommends itself for

siower

particularly at remote radar installa¬
Commercial applications in 1957 will extend to

a-Ospitals and other areas where power failure, even for
a short period, might be disastrous.

tile

ceramic

for

of tile in sun

use

the larger
rooms, porches,
in

in addition to the
usual tiled kitchen and powder room.
The trend to
larger families and to larger homes results in more
bathrooms and
larger kitchens and the use of more
living

dining

and

rooms

well

as

as

ceramic tile.

continuing expansion of the population requires
food manufacturing plants, milk processing and

The

the Armed Forces,
tions.

include the

to

homes

widespread interest among airlines
and air frame manufacturers,
snd

market

the

broadened

more

industrial plants, most of

of

sources

which
expanded market.

an

ceramic tile and are

use

both

produced

substantial volume of

a

demand for steel throughout the whole year. The
plant is now about three times
much as the book value of present plants.

as

automatic and semi-automatic test stands and

equipment,

anticipate a greatly expanded

of advanced design, and we

acceler¬
requirements.by both the aviation and automotive

production of such units this year as a result of
ated

Industries.

During 1956

The company's

operating subsidiaries also are geared
for important advances in the year ahead. Consolidated
Avionics Corporation, which entered upon full-scale op¬
erations for the first time in 1956, will intensify its ac¬
tivities

in

applied research, development, design, and
production in the fields of automation, electronics, and

digital data reduction. Consolidated Diesel Electric Cor¬
poration of Canada, Ltd. began operations in August,
1956, and consequently will experience in 1957 its first
full year of production in fields closely allied to the bur¬
geoning expansion of Canadian industry and military
imd commercial air power.

These

programs and
belief that 1957 will be

our

craft

ground

support

ARTHUR

a

record year for air¬

auxiliary services

and

under¬

developments

projected

score

generally.

SCHMITT

J.

which began in 1954 which cost approxi¬

ment program

As a result, our manufacturing capac¬
1956 is 50% greater than during the

mately $3,500,000.
ity at the end

of

1955 and we are now in position to promptly meet

year

the requirements

deliveries

that

of

resulting overwhelming demand for oil from this country.
There is such an insatiable demand for pulp and paper,
largely to supply the advertising pages in the daily

sales

The

of

our

absorbing the costs of placing new manufacturing

after

units in production.

design

tastic

in

than

Control

of

plex that

aircraft

and

will

stage

more

Marine

Outboard

Corporation

lying

at

more

which

ing

But

as

ture

its warhead

materials,

fected

guidance

be

fabricating

new

allow

to

will

equipment

reliability.
As equipment

ment

depends

components, so equip¬
upon the component manu¬

upon

facturer.

Everything from capacitators to connectors is
being supplied for electronics by these vital members
of the industry.
On each stands the responsibility for
research and development, engineering skill and
product
Nineteen hundred and fifty-seven will chart
their response to these requirements.

quality.

MALCOLM

A.

SCHWEIKER

President, American Encaustic Tiling Company

Many alert architects
tile

as

ary

of the country recognize ceramic
medium for imaginative

excellent

an

design and

contempo-

as

a

source

of live vibrant color for the

exterior

facings of large as well as smaller buildings.
Outstanding examples of this trend
are

the Pacific

on

che East and

opment

is

but

Coast, Kansas City,

in Florida.

is
ScGit

and

in

in the

rile

was

age

in the U. S. A.

pean

of

on

a

countries,

ceramic

would

be

Tne

tile

growing

been

at

was

capita

per
as

The

in

the

ceramic

United

tile

will

States

sales

new

contractor then
ever, several
tor

to

The

adjust

available

from

factor

new

in

use

Total sales of

activities.
under

New

study

methods

and




processes

cost

as

are

savings

billion

$45.4
of

in

1956

billion

probably

the

close

compared with

in

which

has

for

the

disposable

constantly
be

dem¬

•

will
grow
We feel such aggressive steps to meet it should

dollar

fruit.

more

ceramic

new

tile

in

1957

1956.

Columbian National

Public utilities

surest of

a

will

not

in

nor

equal
net

an

important

the

housewife

added

cars

for

costs

in units

1955

earnings

since
and

1957

is

gain in both units
increase in

of

.-v.?.

the

in

to

allowing VA loans with

no

a

mar¬

Total

How¬

unfairly controlled.

could

out

at

any

loss

at

all.

probably

be

generally

any

and

again

wages

have

walk

.system

on

until

Steel

the

fall

productivity and

of paralyzing

will

cost

strikes is

leaders

insurance

to

be

$450

mer

M.

one

mei

SHANKS

sales

A

during the past

year

see

pol

purchases

of

Group
the

by

insurance

1955

ing

mark.

their

life

18%

rose

In

addition

insurance

lie

above

mei

rais¬

to

poi

protection

greater amount than

a

in life

more

in

rai

be¬

ever

insurance

tha

previous

any

The
a

year—about

outlook

as

plo

in¬

mil

life

in¬

the

grc

further

Carrol

gains.
a

rate

output

of

is

much

billion

$440
not

will

continued

a

Shanks

M.

economy

substantial

year-end

Total

the

Gross national prod¬
1957 should exceed $430 bil¬

in

fore

for

during the coming

lion, and

be

be¬

improbable.
supported

by

of

as

upward

surge

$5 billion in business ex¬
penditures on plant and equipment.
as

Consumer

spending is likely to rise by about $10 bil¬
Federal, state, and local government expen¬
ditures will be up by S4-5 billion. Although the number
of
housing starts will fall slightly below this year's

lion,

and

1,100,000, expenditures on residential construction will
probably come very close to equalling the 1956 total of
$15.4 billion. The economy as a whole will be

pressing

the

limit

of

current

productive

capacity.

General prosperity, a
growing population, and higher
family incomes will make 1957 another year of great

for

sales

the

will

life

insurance

undoubtedly

industry.

establish

Total in¬
high

a

new

surpassing the performance of 1956 by a sub¬
margin. It is likely that life insurance in force
family will reach $8,000 by the close of 1957, com¬

pared

to $6,900 at

the

Although the outlook
life insurance

1955

year-end.

for general

industry in 1957

nevertheless

am

improved

productivity

is

business and for the

an

encouraging one, I

seriously

concerned by current and
prospective price trends. Total
spending by all groups
during the coming year is likely to increase
by over
$20 billion, but the increase in the labor force along
increase of

job
icies

of living.
The present
causing many losses to

its

year

whole

uct

more

pressure

of

our

facing
that

alone.

Reserve
base

ing

$5.8

not

surance

lealize
Francis P. Sears

sue

benefits than

billion.

In

to

But

billion which

con¬

with inflation

agree

sug

Life insurance in force at

tinued to forge ahead strongly,
reaching new high levels.
Ordinary sales exceeded the 1955 total by about 14%,

power

again

union

of t

1957

on

will

probably

not

than $16

prices

permit
The

billion in real output.
will therefore continue.

inflation is the most serious economic
facing us today. In the period 1946-53, the pur¬
chasing power of the U. S. dollar fell 26%. Although
prices
remained
remarkably stable from 1953 to the
middle of 1956, the upward trend
has now been resumed

G.l.'s

prices
raised

doe

and

in

The problem of

time without

labor

1955

record

threat

down-

The

new

soh

life

upward

the current charges usually less than
rentals, especially where rentals have

been

ern

eral

vis

an

that

me

riding for

financing of the

of America

with

ma¬

Residential building will not equal
past few years; I think this is

for it has seemed

a

plo>

"gei
obli

President, The Prudential Insurance Company

per

the

proper

8

$48.4 billion in

estimated

CARROL

terials.

the government was

will be made

stantial

Company

will not equal

wages

I

record,

Life Insurance

seem

Act'

by the life

their families

is three times the amount in force 12
years ago.

dustry

SEARS

payment whatever required and with

homes will be sub¬

changing market.
and

P.

the

expect

$60 billion.

over

of

We

1954.

rationing

can

..

Competition

increased price for
A. Schweiker

develops home renovation work.
the

and

adopted

onstrated.

the
M.

The experience of the Tile Industry
construction declines, the tile

architect

market

amt

life insurance amount, to about $55.6

markets

Engineering and research budgets have
been
stepped up to keep product improvement and
change moving at an accelerated pace.
Increasing labor and materials costs must be met
through more efficient plant and equipment.
Greater
emphasis is being placed on our regular cost reduction

ness

home

himself to

motor

still

year

new

for

peti
pri
sust

carry much

satisfactory

insurance

stimulated sales.

sales

months usually elapse for the tile contrac¬

decorator,

outboard

the

very

life

expenditures are planned alongPlanned obsolescence is a relatively

enterprising lines.

a

country.

advertising

and

people should

expect

so I

amo

I

business.

our

saws.

Fuel

of sales and gross receipts with a noticeable
net earnings.
The automobile busi¬

during 1957 and it is expected

Renovation has always been
when

insurance,

strong

slight.

by schools and hospitals in

ket for ceramic tile.

that

and this makes it evident that

life

In
men

of .money

fore, American families also received

For 1957 I expect a prosperous year with a gain in dollar
of sales though the gain in unit sales may be

consumption

The decline in construction of

«s

The cost

is not likely to reach any
such figures as were experienced nearly 30 years
ago
before the New Dealers created artificially low rates.
The cost of living will probably continue to
increase,

while

volume

stantially offset by the increase in renovation of older
homes.

investors.

forces underlying our markets must be
nourished and aggressively exploited, however, if we
are
to
realize
our
forecasts.
Substantially increased

aver¬

in these Euro¬

the

projects
used

rapid sale of an issue of about $165 million'of a bond
issue just before Christmas, almost all to noninstitutional

produc¬

Chairman of the Board,

The
continuing large volume of construction of new
hospitals and schools will continue to be an important

than

rate.

thes

the

dicates

The

doubled.

for

faster

even

an

ad

by

opportunity

of
America
has
greatly
helped to broaden the use of tile in
diversified types of
buildings.

these

chain

power

lorn

may increase, but there is a good'deal of money
available for desirable purchases as was evidenced

Canada, world markets have

and

FRANCIS

Council

market

lawn

States

manufacturers and the Tile

that

with

ploy
supF

rowing

and lumber

paper

econ

specia] circumstances will affect various issues.
The demand for money indicates that the cost of bor¬

temporary setbacks in Western Europe, but
losses there we believe will be largely offset in other

bear

This devel¬

United

Tile

dividual

for pulp,

priv

of course,

out¬

for his
is turn¬

power

increased

for

Ihos

stock prices may not

cause

may

stronger.

Industry is vigorous and
advertising and promotion by in¬

the

companies, rubber companies, banks and
industrials should have a good year though their
rise. There is not likely to be any
large general increase in stock market prices, though,

many

leading toward complete mechani¬

States

United

the

Europe where it is quite
Italy, Spain, Germany
Norway and Sweden. If ceramic
used

to

In addition to our "home"

in

common

need

zation

in

not

new

more

com]

mize

sports

our

care

natic

Chemical

areas.

ment manufacturers depend

•

and

more

demand

45,000 degrees F.
methods must be per¬

tions.
The heart of these
equipments is composed qf
components which must operate perfectly to allow equip¬

unwilling to

and

com]

toll road bonds.

tivity in the woods to meet growing

over

without melting, and electronic
must function under these condi¬

tax

supP

the Federal Government to assume the obligation of the

productive facilities.
owner, unable to find

home

The

es¬

passage

to

water

mowers.

speed of Mach 20 and the Shockwave tempera¬

around

New

an

in

lawn the old-fashioned way,

it falls

earthward it will accelerate to
timated

interest

motor

The

for
example, will meet relatively simple
temperature problems as it fires to

Under¬

1956.

over

continues

board

The ICBM,

above the atmosphere.

year

optimism is the funda¬
of the economy.
important is the ever-

increasing

the thermal

Arthur J. Schmitt

another

to

buoyancy

But

com¬

new

barrier,

sales

our

mental

fan¬

help

are

in

increase

is

so

looks

(

shop
Sii

not to construct free roads unneces¬

insurance companies to policyholders and
and that nearly $6 billion of new capital

Corporation

for road

program

big business for the contractors, but

taken

be

must

(a) '
or

Federal Government

enormous

We expect that over S6 billion will be
paid

Manager

General

whal

sarily competing with the many toll"roads constructed in
recent years.
Perhaps the safest solution would be for

in

growth in 1957. Plant facilities totaling 46% of pres¬
ent area are nearing completion.
Machinery and equip¬
ment are being installed to produce an estimated 25%

challenges to
the electronics industry, for a new
phenomenon is being encountered—
then,

good

a

of

operations.

devices

and

Marine

Outboard

tronic equipment almost exclusively.

There,

be

SCOTT

C.

Vice-President

Executive

must rely upon elec¬

man

will

1957

that the Tile Industry will at least
keep or probably increase its share of the building mar¬
ket.
We expect our company in 1957 to hold or improve
its share of the ceramic tile market compared with 1956.
and

year

now

operate

even

present

these

that

indicate

conditions

Present

building

W.

electronics.

the

for 1956 will be over 20%

company

supP

prosperous year

a

building indicate?

more

hundred and fifty-seven will prove to be
outstanding year for the electronics industry;
a continuation
of expansion of manufacturing facilities
and of products, services and applications is expected.
And this will be necessary, for there
are
many problems to be solved by

in

common

greater than in 1955 and profits will be greater than 1956

Nineteen

speeds and altitudes

The

care

or in

news¬

for the paper companies
assured, though the competition is intense.
that

papers,

year.

another

missiles

customers and avoid the slower
to the Tile Industry last

our

were

President, Amphenol Electronics Corporation

Guided

completed a plant enlarge¬

company

our

companies are bound to do well since the. Suez
is not likely to be in use for many months with

Oil

Canal

number of years was

a

li

cost to erect a new steel

seems

in short supply
due to the rapid increases of building construction. How¬
ever, the manufacturing facilities have been steadily in¬
creased over the years and now tile is in ample supply
to promptly meet the needs of the building industry.
Ceramic tile for

a

big

1

The company in 1956

However, the prospect is for

capital.

and

labor

and

aimed

capacity.

having stolen
incomes

to

up

the

monetary
It

is

of

another 2%

during
and

course

from the

buying

1956.

problem

of

fiscal

inflation

policy

essential

we

cannot

that

the

must

do the
Federal

the
at

But

Treasury continue existing sound pol¬
holding spending within our productive

we

cannot

throw

the .whole

Continued

job

on

on

page

Gov-

110

4

Number 5604

185

Volume

. .

.The Commercial and Financial

Chronicle

(305)

major issues to be encountered

Continued from page

we

in

programs

tions

can

aged

in the

or

benefits-of farm price

imagined

standard wage laws, and
whatever controls are entailed in
(a) voluntary union membership;
or
(b) the strictures of union
shop, closed shop, or hiring hall.
Similarly, can our profession
supply either clear-cut criteria or
compelling insights to guide our
national choices between types of
competition that tend to maxi¬
mize productive employment and
those that curtail it, or between
private and public expressions of
economic enterprise?
The Em¬
ployment Act challenges us to
supply the policy-maker both with
formal ideals and with workable
ad hoc approximations covering
.imports,

longemployment.

Employment

vidual.

Likewise

.

the

point

relative

or

to

of

short-run

of

concepts

run

reached

at

full

be

conflicting

definitions of the term.

is short-run.
annual

it, the time

the

of

these

with

even

per¬

Employment

Act

The apparatus of an

economic

and

report

pro¬

submitted by the President,

gram

its review by the Joint Economic

three-di¬
choices—
among freedoms,
forms of com¬
petition, and channels of enter¬
al prise — to our promotion of
sustained
maximum production,

goal posts

Committee, and the submittal of

shrouded in fog, economists should
have not great
difficulty in decid¬

this

ing which team they

present alternatives and

There

on.

has

playing

are

been

growing

a

committee's

report
to
focusses
attention

Congress
for

the

current

judgment in the economic think¬

action

ming

the

numbers

larger

on

Advisers

Economic
such

"reform"

first

Economic

of

this means greater con¬
centration
on
the
middle-age?
brackets
and
greater
freedom^
from work of the young and the

the
the
reports,
of

Report

however, have given more rather
than less emphasis to the long-run

boom—that

should

creep

chosen
or

a

interpretation of the full-employ¬ between men and women and be¬
ment concept, and this tendency tween rich and not rich—i.e. the
has

been

the

work

least

at

in

marked

as

the parallel program¬
private
business.
Of
necessity, the measurements of
unemployment which the Presi¬

and

consciously

dent and the Joint Committee take

rich" class.

be

mention only

the

alternative to intermittent

marginal

labor.

It

is

non-use

of potential

argued that adequate
economy

cannot be

bureaus
such

labor

the

arts

of labor in the

through the injec¬
money" each year.
Proponents of such a view would
keep this accelerator pedal pressed
to the floor boards, reposing con¬
fidence

in

the

brakes

hold

to

in

"given"
of

state of the
this affects the functioning

force,

attained except

"new

as

chraracter

the

as

tion

of

take

must

things

statistical

various

the

from

over

as

the

productive process,

and the whole institutional situa¬
tion

as

incentives

mediates

it

to

its subcommittees.

areas

that

-

to

to be out¬

me

in

the

long-run

tion economy.

this

dwell

to

fractional

of these
motors.

possible

as

many

as

manpower

contemplate
opportunities on a

have also to

It would

the

on

full

employment policy would
cer¬
tainly include an intention to use

maximum-produc¬
There is no need in

audience

tenable long-run

A

cidents.

work load

of the

distribution
a

rising

the

longer-term as¬
pect of the full employment con¬
cept. The first of these relates to
the

and

wars

succession of polio

four of the problem

seem

in

standing

Korea, a
epidemics, and
tide of automobile ac¬

world

two

the

of

handicapped
pasualties oi!

employment of the
has grown out of the

of time I shall

pressure

problem

enlarged

An

Consideration

Long-Run
Under

of an "idle

disappearance

virtual

Joint Committee

of the

inflationary

steady

more even distribution
the middle brackets both*

but

old,

within

of

times—that is, times of
postwar prosperity and persistent
our

economy's

distribution of the

work load,

in

proposals

leadership post3

for

science,

the

including

for

Subsequent

President.

legislative

year's

consider how

to

might, over time,
to permit higher

as

for

model

a

and

ing of

growth of the

issues.

Important as is this
mensional area of policy

both

altered

gifted

management, and tha
arts,
(c)
for adult males, ther
shortening of the work day, the*
lengthening
of
the
week-end
break, and
an
increase in thc»
number
of
recognized holidays
and in the prevalence and lengtht
of annual vacations. In terms o2
in

people. The first Chairmen of the
Joint Economic Committee chided
the President and the Council of

~

But

so

maxima

On the face of

spective

forward

those conditions

III

which price changes
up and down
in varying degrees become infla¬
tion with a capital "I" is indeter¬
minate

fast-changing situausefully envis-

context

most

thought might be attained under
presently obtaining.
On the contrary, they have boldly

the conditions

be most

versus

Of Full

as

struggle for the best working

109-

employment
stepped-down basis after technical
retirement, and some revision of

work, contractual terms regulating
the
work-week
and
work-year,

sweeping changes that have al¬
ready
taken
place
during
the
and many others.
growth of modern industrialism:
But
any
adequate concept of (a) the increasingly fuller partici¬
the fullness of employment toward pation of women in the productive
which
we
could
wisely
strive process, (b) the withdrawal cf

the utilization scale of the young
any emergency and trusting also
still more baffling ambiguity and
to provide more intensive train¬
that momentum will not carry the
IS ambivalence confront us in the car off the road even when brakes
ing of the really capable and less
Act's qualification of the full em¬
time
wasted
by
and on the
are
doing all that is physically
children and adolescents more and mediocre and inferior.
ployment goal by such phrases as
possible.
They expect the Con¬ cannot, in a society such as ours,
more from the
burden of regular
"general welfare . . ;. needs and
take those givens as gfven
"for
This brings us to our second
gress to "fill 'er up" regularly and
obligations (of the Federal Gov¬
to
permit
fuller
physical
to
reline
the
brakes
whenever keeps." As vital factors in the jobs
long-run issue—the choice, private
ernment)
and other consid¬
mental
growth,
and
problem, their endogenous evolu¬ maturing,
needed
or
install
new
ones
of
Continued on page 111
erations of national policy." Space
tion must be perennially studied highly specialized training of the
more
powerful design — that is
does not permit even the outlining
and their exogenous determinants
"controls." In the other camp are
of the multifarious issues that are
those who rate inflationary dan¬ progressively shaped toward the
suggested by these broad phrases.
attainment of that pattern of labor
gers as greater and offsetting con¬
But both economists and business¬
,

most

men
one

side

or

often

invoke

them

on

the other of the argu¬

of employment

ment over fullness

vis-a-vis stability

trols
To

a

mere

verbal

matter,

re¬

solving this inflation issue might

obvious: follow
policies of freer private and pub¬
lic spending to stimulate employ¬
ment up to but
not beyond the
point
where
further
pressure
raises the index of prices rather
than the production
index. But
seem

e

such

easy

a

and

criterion becomes distress¬

ingly amorphous once we look at
more closely.
As already

compli¬

here: to review the
and

cated
As

ultimately self-defeating.
issue we shall return

this

later, but by way of partial sum¬
mary

of the dollar.

as

in many ways obscure

language of the

utilization

ployment is not a simple matter
of counting noses of an objectively
determined labor force and statis¬

measuring an "unemploy¬
gap" between this roster and

tically

glorified "Help Wanted" col¬
umn.
And working concepts for
noted, the actual fullness of em¬ the actual policy-maker involve
ployment is objectively indeter¬
assumptions
or
hunches about
the

matter

policy-maker,
spokesman,

group

5of

opinion

of

some

the ! interestthe indi¬

even

most if not all

economic

society

highly dynamic conditions of our
our market structures

the major areas of

theory.

and

the

of

ideas

and

our

Savings and Trust Company

The Dollar

changing

optimum

role

The

of the
voluminous

Economic. Reports

the

and

President

i».v

December 31, 1956

of Business

At the Close

emanating
from
Economic
Committee

documentation
Joint

the

fortunately, reflected the
economic thinking of our times,

ASSETS

have,

professional and lay, in that

both

they have

not limited their con¬

production and

cept of maximum
maximum

such

to

real

goals

purchasing power
as

these

officials

Banks

Cash and Due from

Overdrafts
U. S.

,

A.

.

.

.

...

.

.

.

Transporter

directly and indirectly, to an

and

Discounts

.

.

.

.

.

.

.

.

.

.

Other Assets

.-

.

- .

•

207,297.81

.

.

•

.

.

Ohio, Michigan and

.

.

.

.$110,231,831.03

LIABILITIES

shares)

Capital (31,250

Oklahoma,

the Province of Ontario

.

.

.

.

.

...

.

.

.

,,

,.

.

.-

-k

.

.

Reserves

.

.

.

.

.

...

1,135,849.30

.

Undivided Profits

3,250,000.00

.

Surplus

EASTERN PIPE LINE

.

.

...

.

50,000.00
.

.

...

Interest and Insurance

1,263,403.99

.

Government Deposits

.

.

57,112,621.80

.

Deposits

Other Demand

675,498.75

...

.

.

.

.

45,035,034.97

.

Time Deposits

that one of the important
eharaeteristics of Panhandle Eastern is its
ownership of substantial natural gas reserves.
Informed investors know

The

Company's current deep drilling program

successful.,
resulting in new discoveries which have
materially increased the Company's owned reserves.
on

its own leases

has heen highly

dependable, adequate supply
never-ending search for
additional reserves ... a search that calls
for the courage to make enormous investments

Other Liabilities
TOTAL

Loans

U.

S.

and

new

of.

.

Natural

PANHANDLE

.

.

.

net after deducting reserves

are
,

.

shown
.

.

Branch

gas

.

.

...

.

»

.

.

237,990.00

Offices:

YOUNGSTOWN,

OHIO

Branch

Offices:

East Side

industry will continue to

superior fuel.

EASTERN PIPE LINE

of $1,519,418.33

net after deducting

SAVINGS
and TRUST COMPANY

of

to

this

.

$lTo,231,831.03

......

I

make
these investments to locate new gas fields and
expand transmission capacity so long as
there is adequate incentive to encourage natural
gas companies to find, produce and transport
The

Securfties

459,422.22

•

The DOLLAR

is the

capital.

.

Discounts are shown

Government

reserves

.

LIABILITIES

The key to a

of natural gas

1,250,000.00

.$

.......

.

Accruals for Taxes,




155,523.78

.

•

estimated

Special U. S.

PANHANDLE

.

281,766.80

'./'•

.

.

.

.

.

Receivable on Bonds

TOTAL ASSETS

Illinois, Indiana,

Kansas, Missouri,

38,145,355.52
960,000.00

Banking Houses

13,000,000

industries in Texas,

to

3,044,398.87

.

...

.

Loans and

Supplier of Natural Gas,

population of over

48,561,592.84.

....

Investments

Accrued Interest

Producer, Long Distance

270.04

.
.

Government Securities

Other Bonds and

.

.

18,875,625.37

.$

...

Furniture and Fixtures

and

OHIO

YOUNGSTOWN,

of

government.

of the

Some

practices,

CONDITION

STATEMENT OF

.

Employment Act's technology,

its terms

minate—a

to an

of laboristic
capitalism. In other words, the
employment problem itself under¬
goes a perpetual recasting in the

policy declaration in the light of
10 years' experimental interpreta¬
tion is to make one thing clear.
Even an ideal concept of full em¬

ment

acceptable

most

enlightened

Uptown Office
South
West

North

OFFICE

Side

Side

Office

Campbell Office

CENTRAL SQUARE

Struthers

Office

Member Federal

Reserve

System

Federal Deposit Insurance

Office

Hubbard Office

Side Office

Member

COMPANY

MAIN

Corporation

Office

Financial Chronicle

The Commercial and

(306)

110

Continued

passenger

ernment

Business leaders and labor leaders must recog¬

nize that

they share with Government the responsibility

functioning of our economic system, (in¬
cluding responsibility for the preservation of a sound
dollar. Wage and profit demands far in excess of im¬
provements in productivity
not only violate decent
Iqp the proper

field, the addition of two

propelled

from page 108

We believe our equipment program was one
of the most complete and dynamic to oe
unuertaKen by
an airline.
It will offer Continental's
passengers three
planning.

trains of self-

cars,

new

the'"Daylight Speedlintrs." The "Day¬
light Speedliners" represent toe first adaptation of in¬
dividually-powered rail cars to fast, througtr train operation with meal service.
The trains run daily between
Philadelphia,
Baltimore,
Washington
and
Pittsburgh
since

and

their

patronage and

inauguration have

will

favorable comment.

mucn

;ontir*

neW types of aircraft in the 1957-59 period.
The first of five new Douglas DC-7Bs will be
delivered
in time for the inauguration of Los
Angeies-DenverKansas City-Chicago service in April. These new
planes

additional

attracted

Thursday, January 17, 1957'

...

be

CAL's, last

purcnase

aircraft

of

powered

Hi

by

project initiated during last year was a $13,500,000 pro¬
gram of yard modernization at Cumberland, Md., Wt.icn,

re&procating engines. ' " '
\
"'(Jorttinental will enter the jet era in the spring of
I9§8^wnen deliveries of 15 prop-jet Viscount 8i0jl)s are

important of all in the fight against inflation,
take positive steps to increase
the; rate of
saving in this country. The demand for funds to finance

when

started.

among

oujv( Chicago-Los

needed

repair facilities at Chillicothe, Ohio; the reconstruction
of 15 bridges; and installation of remote control signals.,
and switches at various points.
We will also construct 1

standards

fairness

of

and

justice

but

evidence

willingness to measure up to the responsibilities inher¬
ent in the free enterprise system.
Most

must

we

highways, schools, homes, factories, and other
equipment is far outstripping the supply of
savings, and there is every .indication that the demand
will remain strong for years to come.
Unless savings
are stepped up to meet this demand the inevitable result
o&pital

will be

taining
ahead

sound

a

this

inflation.

more

and

depends

meet

to

and

more

Our

prosperous

importantly

inflation

serious

in

economy

how

on

in main¬

success

well

the

years

able

are

we

Perhaps

un¬

an

threat.

M.

SEARS

an

so

long

as

product, there will be room for improvements in mate¬
rials handling equipment and meth¬
ods
and
plenty of incentive to
—

make them.

in

construction of

the

Recent

technical

vehicle

developments

itself,

in

and

lar

handling particu¬

in

several

will

of

be

soon

fork

our

we

ratios and
lift

Lester

truck

M.

Sears

be added to

or

appli¬

engines, involving higher compression
their application to fork
produce smoother performance
regardless
grade.

horsepower, and in

Greater attention,
too, is being given to
developing
basic models of lift trucks which
can be
readily equipped
with accessories designed to
satisfy the special handling
requirements of customers.

supported

with

progress

railroad,

industry

at

of

the

re¬

last

offered

is

loans for the

at

by

the

potential

than

$202

Money must

lines, during 1956, of
new

installations.
These industries
investment in plant and
equipment of
million.

and

this increasing

flow of traffic,

more

2,700 freight cars of various
types were built or
puichased during 1956.
Another 1,000 cars have been
ordered

own

shops

fleet,
In

Ohio

and

in

we

are

building still another 1,500

Many of these

addition

addition

to

to

new

the

the

Ohio added

99

^f^innoetee.IJ fifjy-six
of tne railioads

new

has

24.3

A. Shea

to

do

the

extensive

and
pro¬

?3% dieselized,

the Baltimore
diesel locomotives to
its power
for

deliverv

during

solid

a

In

we

a

better
we

Robert

F.

expect

advise
that

will

The

are

by

the

revenue

1960

and

an

industry meets
traffic

in

1965

increase
our

that

country

to

has

allowed

grow

more

portation system in

our

larger

aircraft;

example

of

progress and
growth
expansion program.

is

upon

call

for

at

f:.4jolitic
jhp

^

finent

all

h

•

work

How
In tl
ageme
ment

sharpl
forwai

ploym

object
2,000-1

ex¬

times

is

shall

highly

roster
Silberstein
seven

few

24.9

billion

40

facilities,

and

the

country

While

the

tinue, at

appliance

good

own

for
$62-million

requirement for tomorrow's new mutes
—fast, large airliners—was
yesterday's project in CAL's

■■■■-.

and

television

power

othen

perioc

by

be/ke
years

-

•

-

back

"maxl
numb

business, will

levels, the competitive
marked

most

sulted
the

produ

of

conditions

1956

and

consu

long-

con¬

ness

which

which

carefi

re¬

the :

in

price-cutting throughout
industry, probably will extend

into the first quarter of 1957.
•
:
Production and sales of television

tweer
whol<
surne

.

receivers
about

should

the

reached
will

level off

in

1956.

remain

Unit

high

in

1957

million

seven

due

production

to

However, the big

priced
^a
J.

M..

of

sales

receivers

will
on

be

in

which

Skinner,

Jr.

evision
.rise /in

television will be
public

wants

greater

lower

there

is

sipaller margin of profit.
We believe that sales of
receivers
1957.

will

color tel¬

continue

to

The

coming of color
evolutionary—not revolutionary. The

fidelity

technical

improvements
in
receivers,
ii>. broadcasting, and more color pro¬
grams before it will purchase color television sets in
large volume. Much Work remains to be done in these
areas.

The
of
--

largest gains in 1957 will be made in the fields
military and industrial electronics. This phase of the

Continued

on

of

at

ceivers and the trend toward second
sets in the home.
volume

,1

page

112

te

Only

mark

increasing
popularity of portable television re¬

doubled

planning

"

of nuclear

,

air travel market.

sound

throuj

"

ap¬

long-range

age

already entered the nuclear

confidence in the economic
strength of
andcontinued
prosperity through M957.

revenue

than

tween

rPresident, Philco Corporation

passengerbillion by 1965.

more

a

tions.

^We' have full

1957,

of

about

JAMES M. SKINNER, JR.

billion.

For

for

work

particularly optimistic

the general adoption

Air

total

union;

basis,-and, expects to be in the

ft

to

words,

indica¬

a

us.

g J

x=
t-

WOl'K

are

American business.
r .■

some

hp

£? MJL
fc

econ¬

as a whole

for

Spe

{£■*',

year.

Pemi-Texas

forefront of

passenger-miles

35.5

Continental's

that

Penn-Texas has
energy field on a broad

19571 exceed tne past

spring of 1957, we will extend our
system in
two of America's
major travel markets: Chicago and
Los Angeles. The new
route—also covering Denver and
Kansas City—will
extend
Continental's network over
roughly two-thirds of the United States.
one

wage-;

rushing

only question; by

the

The number

r;

[n

H lective
r

energy.field.
We are convinced that this
holds promise of the
greatest era of prosperity that our
niation and the world has even
known. And it is

than equal

more

combined

industry's

patten

last year such as housing and
industry will show marked resurgence

rapidly than any other trans¬
history. The planning includes
new

menct

fl
p

Corp.

,

result from progressive
plan¬
the scheduled airlines of this

mass

the

p

planning,
year.

industrial

division

the inuclear

surpass

doubt, even
this dynamic

in the 10 years since 1955.
This record advance will

ning

ials

p anions

view

the

personally believe that the

iW;e

predictions.

have

more

busi-

1957.

expectations, its volume of

will

In

future

succeeding

Penn-Texas

and

our

away

Lines, we betransport industry will

to

and

and each

truly healthy

me

passenger-miles. Our projections call
for
32
billion
revenue
If

;

SILBERSTEIN

industry

squared

ii^-the coming

no

of

revenue

proximately

Six

leadership.

leis

if

especially sensitive
planning of business

automobile

forecasts

a

world

.

,

these

•

st^trSpots that developed
tne

members

air

'

-

kii

lis

part of the expan¬

as

r

President,

Our various

prosperous

recession

a

the

present

}o the

| choice;

are

broad

getting

Air Lines

Continental

lieve

-

The

foundation.

a

ecutives

SIX

to

engine

headquarters,

(

social

Since Penn-Texas Corp. serves
different areas of American

Ihe

I

There is

ther increase

An

car-repair

on

industry,

things

continuation of the climb
to 29 billion revenue
passenger-miles
in 1960 and, five
years later, a fur¬

efforts to expand the

saw a considerable expansion
trailer-on-flat-car service, and in the




Lewis

ma¬

1957, compared
with
approxi¬
mately 22.5 billion for 195b.
They

our

above.

s

also

many

in

predict

tions

now

itself, has utterly-failed to elimi¬

omy.

probable.

billion

turbine

Denver

.

D.

and

leaders. Ours is

revenues

commercial
At its

new-buildings

nate the enthusiasm of

employment, otherwise

Cautious

have already joined

93

in

do

homes

F.

base

o

jloyer;

attempt of the government to
dampen the present phase of this
long-term boom, while constructive

somewhere

but

control

-The

boom year?

faster,

mentioned

ordered

nessf

now

how much will

In

and

from

institul

any

,

supply.

those of 1956.

our

last year.

pool last year, and
the current
year.

build

industry that traffic and

miles

of

Everything that I can see on the business horizon reaffirms my frequently expressed confidence in
tne present industrial boom.
I, therefore, repeat my bullish prognostications of the past four
years—that our nation .is

and

To

conservative

more

in

construction, the Baltimore

sharply accelerated

gram instituted

cars

the 2,700

are

of last year.

rep¬
more

L.

Chairman

1957, the scheduled domestic airlines should

the record growth

than

more

industries, and the expan¬
existing plants and

ahead

imi

an

Angeles International Airport.

first

expanding its production

purchase of

necessary to maintain
is not
only possible

on

sion of at least 39

2

than

-•raT"

ultimate

short

come

ore

Under construction
are
other new
expansions which will
ultimately represent
an investment of
another $837
million, which will further
add to the
company's revenue potential.
T°

to

the

its

to

tions

has

location

150

plants

country
It was hoped

uninterested.

by the company's
Baltimore were greater

our

an

the

them.

the

be

w^-'rq bullish about 19o7

generally.

at

revenue

industr

maintenance

oLthe industry's past performance

the

terest rates and for much shorter
terms, and the securi¬
ties of the states, cities and towns have
found the buyer

any time since the facilities
went into service in
May of 1951.

resent

high

States

to

handled

facilities

Simpson

a

evoivii

route

operate jet transports

months

and

the West Coast.

on

United

machinery

dollar.

in

special

Import

H. E.

of

power

plants

will

chinery is available only at high in¬

among

en

The progress made by Continental is
typical of the
country's air transport industry, which has
brought the

Bank,

■

•

tonnages

increased

buying

base

facility

:

dilemma, .barring

a

$2.5-million jet overhaul

under construction at Los

so-called tight

money

factories

In

CAL

707's

quit hi
optimu

Be¬

legislal

The

additional

t

Production of coal fields served
by
our
company was 15.2% higher than
in 1955, almost double
the increase
in production
nationally.

been

of

the

high level.
import ore

a

coal,

grain

freight

by

market.

Mortgage
Time

minutes.

fleet to 34 planes.

our

CAL has purchased
sion program.

top employment.
by the main¬

house

encouragement.

Our

as

SHEA

President, Continental

flecting the broad general prosperity of thh
nation and
despite a work stoppage in the steel

than

by

preventing

have

we

and Ohio Railroad Co.

export

well

year as

Connecticut National

modern

to

ing the value

and

48

tices

a

of inflation, or the correc¬
thereof, by holding and increas¬

money

putting

to

decide

^Continental also is.expanding its ground facilities, with

traffic should be about

our

A.

monetary authorities
with

this

routes,

ecreat

118 first-

yairs increased

disaster
tion

and

wo

ould

Che planes on order, Continental
recently
added three new Super 440 Convair Liners.
The Con-

1956, but in the

,

The

war.

facilities

faced

the

by

e

In .addition to

business to be

:

ROBERT

The year 1956 was one of
achievement and
for the Baltimore and Ohio.
Traffic on our

and

our

Additional diesel locomotives will

overshadowed

of

SIMPSON

summer, continued
The movement of

expect

we

during the

modernization

Our

LP

President, The Baltimore

on-sthese

the

ividuc
r

Chicago ;in
Los Angeles-Denver

hour

an

asis o

and

Qqntinental will be the first

„

building;
building of roads, hospitals and
by subdivision and increase,

and

On

carry

Angeles

Los

minutes.

and Kansas City, the
time will be 2 hours and 46 minutes.

larger volume, principally be¬
period last year. For the

a

-•

is

factories

prospect or already real¬
braking performance; changes in

HOWARD E.

fleet

our

cars.

be

and

jets wilh

new

between

22

pi

conon"

cruising speed .of

a

Los Angeles

tween

schools

trucks to

of load

expect

2% higher than 1956.

the

and

mute, flight time will be

tenance of continued home

There have also been further
refinements in both gas¬
and

by

hour, CAL's

an

class passengers
J hours

of the steel strike in that

that this would be done

an increased number
of our models,
provide easier handling of loads and
greater maneu¬
verability in narrow aisles; an increase in
lifting and
lowering speeds; and improved stability in
lifting, lower¬
ing and turning operations.
.

we

1957,

the similar period in

as

same

half

second
cause

to

oline

total

entire year 1957 we estimate

must

Other technical advances in
include improved

steering, powered for

about the

economy

models, will not only do away with
friction clutches, but will
markedly simplify the
cation of tractive power.
ized

575 miles

coal

as

an

schedules

other air carrier.

possibility

installing
lift

item,
tonnage, hauled

The immediate outlook for the maintenance of

materials handling operations.
introduction
of
the
hydro¬

drive, for example, which

important

an

Bridgeport, Conn.

The

Towmotor

the

President, The

products, have further broadened

static

is

LEWIS

the application of this
type of equip¬
ment to otherwise difficult and cost¬

at

of

of

accessories

ly

45%

coal

For the first half of

in

many

its

for

about

for

Angeles

Q.ur,fleet of four Boeing 707s.- With

a

demand

We will put tnese 400-mile

nd

leisure

hour planes on
by May of 1958,
becoming the first amine to offer prop-jet service
wqst
of the Mississippi.'
V '. *
''
\
1959, ContinentaL will enter the turbo-jet age with

single-track bridge across Arthur Kill,
S. I., New York. This bridge will, when completed, in¬
corporate the longest single-track lift span in tne world.
Looking to the future, the forecast for huge increases

freight

lift

trucks, especially, have
been of major assistance in
cutting
industry's moving and storing costs.
the

improvement

property

B. & O.

the cost of moving materials from one
point to another in manufacturing operations continues
to represent from 20 to 90% of the cost of the finished

Fork

important

ultra-modern fruit pier at our Locust Point terminal
Baltimore.
Among other contracts let was one for.,

forms

Chairman of the Board, Towmotor Corporation
Just

most

completed, will make the B. & O. facilities there
the most modern in the world.. Other 1956„improvements included installation of additional diesel

in

LESTER

the

I

comp

tionei

b

Hr0iame

Number 5604

185

.

.

.

The Commercial andC^i

Chronicle

(307)
ie

wtinued from page 109

laboristic

jy

clear

ee

Ideal and Working Concepts

Jd
ir¬

Of Fall

es'

>y

re

cononiy

asis

were
organized on a
of'self-employment, the iniividual could decide—by whim
,r by
thoughtful calculus—when
.je
would
work and when he
[vould knock off for either rest or

'st

:th
Of

tivity. This both adds

He still is free
to
decide when he will seek work or

on

W,

in

e-

te

)W

other

ne

n-

in

unions

iW

in

evaluating

specific

cases

the

work

;ion

the

conse¬

ultimate

of

leisure

and

ment legislation,
sharply defined

forward
I
t

of

toward

As

for

be

we

the

roster of

workers

seven

hours

a

worK

week

of

unions
for

tions.

ir

>y

still

issue

leisure

and

retirement.

the

technology,
of ^'collective bar¬

adjustments

supplementary

out

choice

in

or

long-run

between

from

This

interest.
the

drives

the

work
the

up

concerns

their
we,

This

brings us
discrepancv between

production"

as

total

volume

satisfactions.

A

for,

But

ciety

demands

continuous

study

the

still

of

of

of

worker-con¬

changing conditions

technology

and

of

longevity.

Only two practical aspects of this
complicated

issue

.can

be

men¬

bur-

and

they compensate

induce,
or

consequences

those

on

heaviest

I

be¬

in

now

levels

consumer

the

of

our

backward

on

tions whose advance

we

na¬

might aid

most

strongly
and
most
com¬
fortably in proportion as our own
production

was

really maximized.

A third

full

run

be

no

full

employment
at
the
higher price index or
dollar.

been

Tl?e

dimly

means

and

envisaged

analysis,
issue

maximum

of

more

of

brisk,
rather
roll.

viewing

issues

(ex
For

to

more

under, the

some

union

as

a

ponsion

contracts

troversial

bility,

acquisitive class interest
corporate employers and un¬

seek

national

policy

long way
toward recognizing the self-de¬
feating character in the long run
of
restrictionist
practices
with
to

gone

a

such

things as ap¬
prenticeship, labor stints, and the
introduction of machines and, to¬
day,
automation.
Employers
as
well

for

unions

as

better

education

and

training

rather sophisticated argu¬
as
to the equipment phase

of labor productivity, that every
step-"-; toward
scientific
manage¬
ment and technological improve¬

contributes pro tanto to the
welfare of the economy.
ment

Economists
that

is

chasing
cannot

this
rate

not

is

sometimes

respond

not

necessarily so if
of capital intensification

neatly timed to the rate of

labor

reabsorption

that

is, if
labor saving results in labor wasting.8 This issue has been aired
in

repeatedly
Joint

of
Committee

between

"trickle

—

hearings

Economic

debate

down"

advocates

theory

of

the
as

a

of

be

spending

sifice

it

resolved

be

cannot

either

by

maxi¬
to

a

mav

or

bv

proof. It involves informed choices
between

degrees

tary desiderata
tions that

are

of

rganized groups.

complemen¬

in concrete situa¬

in

and

and

concentration in the hands of pol¬

icy-making

saving

officials

of

for

of

capital

cor¬
more

important that the degree of de¬
belittle in¬

or

centralization still

remaining shall

an

decisions

of

to

agencies.

It

of

ponents of high pressure

extremely

goal

all

at

deny

the

high

times

employment

seem

practical

appreciable
tional

to

necessity

frictional

dynamic

formally

industrial

deremployment

of

transi¬

or

current

the

a

as

farms

on

a

highly

society.

basic

industry,

they

accept

premise of business life in

the

me

unemployment which

themselves

Un¬

during

readjustment

ics,

in monolithic

behooves these

ambitious

to

abstain

or

sion

engender

will

take
tends

iporq,. men

on

to-yAeate

a

the

a

stimulative

work^rls—untouchable
effect

of

an

increase

position
wages,

unemployment

o

or

Rejects

f

controls

Stable

Price

groups, and substantial idleness of

Since

o n

the

and

Creeping

Prescriptions

automobile

workers

while

some

baleful

effects

egregiously bad mistakes of
are

cases

being

in

man¬

corrected

point,

but

of

af¬

the

in

is

the

longer

and

wider

swings from boom to equilibrating
correction

really

that

the

fundamental

major
issue

and

lies.

of

over-employment

of

an

Democracy,

investment

onstrated

in

stances and

a

It

at

the

cycle that

available

has

never

so

amply dem¬

places in the past, and

arresters
been

strength of the
or

Natural

American

A

NEW

JERSEY

Gas

CONSOLIDATED

MICHIGAN WISCONSIN

GAS COMPANY

PIPE LINE COMPANY

strain, I cannot accept inflation
a

way

even

of

an

of

life

though

for

the

.1

Continued

character
on

Company

CORPORATION

•

MILWAUKEE GAS LIGHT COMPANY

•

AMERICAN LOUISIANA PIPE LINE CO.

re¬

by
in

j

X* ' i
v

■ v

"Real Estate is Everybody's Business"

AN INTEGRATED NATURAL

C.4S TRANSMISSION AND

DISTRIBUTION SYSTEM

WITH MORE THAN HALF A

CENTURY OF SUCCESSFUL

OPERATION—SERVING

MORE THAN A MILLION

long

as

run

emergency measures

inflationary

Knapp

INC.

correctors

really tested under

.

W

in¬

variety of circum¬

since the effective

second order of magnitude.

It

its onset have been

fy*
>

l:

of

flation and the insidious nature of

<♦>

'•/v

prices,

investments.

demand. ,Vir

/

degree of

inflation that will call for the im¬

unemploymepl£ situation f-r the

marginal

from
of full

of business expan¬

pay¬

very

pro¬

econom¬

definitions

employment
as

control

government

therefore,

such

highly immobile coal miner

among

execu¬

administered-price

not be swallowed up

prq-

MICHIGAN

national

porations. It becomes all the

general

crest

A

of

demands realistic recognition of a

in constant flux.

Price-Making
IX.

Our freedom of

ndividual choice has already been
at many
points through

eroded

monetary

state
8 See

at the cost of less freedom of

onomic choice by individuals or

maximi¬

flation threats and who champion

unanimously

dictum

activity

Those who ignore

ford

the

en

a

be
argument will continue,
We

the rate of economic expansion

r

such

formation.

those

adhere

a value judgment in favor
maximizing the number of jobs

of

tives

business

and

sure

declare

to

agement

theory.

be kept

can

by the use of general or
controls.
That is simply to

spot

to

the face

that inflation

in check

people, it

the

in

enough for the advo¬

bargaining unions and top

employment and production
who

attained in

not

to argue

ideally

be

is

cates of "high-pressure economics"

dual

strive

would

for the

maximum

mechanism that would be harmful

mum

"trickle-up"

the

the

continuous

power

of

non

qua

Decentralization

progra m

and

should

disturbance

any

a

ment

it

employment

promotes

support programs

of the labor force. Employers also
make

that

sine

It

which

process

and

promote

the

Remaining- Degree of

sta¬

are

avoid. If, as I have argued,
as

is

con¬

inflation,

that

of

making

and

deflation

of

impairment

long-range production or economic
progress in a free-choice economy.

by which we
objectify the optimum

to

the

or

t a, r y
mechanism whose
smooth and dependable operation

m o n e

symbols

condition

should

flation

zation of production and real
pur¬

workers.

reference

terms

and

full

the

have

petual motion and the miraculous

consumer

elusive

It is

of economic per¬

(and

prospective guarantees
wage),': ii, is to the advan¬
employe#:/when demand is
operate': on. pn
overtime basis

*

&

The

under

than

fractory

economist's

services.

of

rendering

dream

we

elimination
of
these
frictions
rather than patient lubrication of
the transitions that we invite in¬

value

must be compre¬

process

and

and

Unions

when

"the

physical

a

dangers

ionized

non-economic

j udgments)

non-partisan concern for maximu;a production by the economy
of

avoided in the boom period.

paramount

is evi¬

ours

the

This

encounter

we

the

the

the comprehensive
policy
decision in which all segmental

the

to

annual

an

tage

again

between

fact

the

in

in proportion as over-invest¬
and
over-employment .are

vere

ment

or

semantic

this
other

in

increase

some

unemployment during
offsetting period of slower
plant expansion and durable goods
accumulation—a transition less se¬

it

as

of
of

the

in the policy
of
the
Employment
juxtaposes full employ¬
ment
against "other needs and
obligations."
But
it
is, in
my
Act

goods

Here

tability
volume

already
dilemma

a

It

demands recognition of the inevi¬

declaration

purchasing power
overtime, it obviously implies
continuous physical and mental
improvement of the labor force

conflict

as

vidual and institutional
saving.

a

which both express and condition

can

consumer

tial.

to

power

cheaper

a

has

matter

.

alluded

of

cost

here.

mentioned

production

mum

real

than

the bottom of the man¬
barrel and stretches credit
beyond the safe support of indi¬
scrapes

long-run

maxi¬

employment concept

employment

be said of

may

our

economy" is an
infinitely complex system of pe¬
cuniary
relationships
of
costs,
prices, incomes, spendings, sav¬
ings, investments, and taxes,

broad aspect of a long-

more

of

in¬
terpretations of the full employ¬
ment concept—the choice of fuller

hended.

Trickle Up and Down Theories

Chap.

disparate

widely

■




The

would,

same

fourth

to the .economy or so¬

instance,

aggregate

Webb

very

calcu¬

r'V^

V'sic-fis

the

tioned here.

if

Even

7 For

whole

lifetime

it

'

functional
relationship
be¬
tween work and leisure over the
sumers under

is

benefits

fall

are

of

added

of

values they attach

themselves

that

dent.7

employment
and

make

expect

management

the

group and

ness;

of

to

already

altogether

unions

Neither

uses.

or

long-run concept of optimum full¬
careful

|not

shortening by autofnation
labor-saving devices.

of

sound

lifetime

the

what

will

•dens

"maximum employment" as mere
number of jobs and "maximum
consumer

such

to

in

shortening of
tjhe work year,

is

It
use

members
or

the general

the

for

to.

de¬

Conspicuous

week,

what

clear

and leisure

policies

|nd

is

working

referred

be¬

of

copflict between

the group interest

that

55?

work

the

in work¬

criterion

employment

our

rives

complication

a

lates

even

fall

population—and

the

A second

ing

where

the

made

jobs, part-

work, and dofit-yourself ac¬
tivities).

clear

or

both

are

acceptable (within

personal

period for which employment is to
be kept full at 62
years
or
60
to

of

patterns? that

leisure

back

it

GNP.

our

and

through social security rules and
otherwise, set the end of the

years

lieve,
lowest

time

vaca¬

Shall

en¬

thereby produced,

progress.

and
as

much

life

or

computer of

processes

the

shorter

longer

second

is

the

through

days?

the

for

However,

workable

perhaps a
The

or

vast "do-it-your¬

a

ployment

full

only six

four

and

A

work
at

age

ie

(2)

tween

ir

day

a

the

employee

em¬

increasingly lining

are

work week
lit

for

campaign

a

with

into

gains and of legislative standardmaking keep nudging both em¬
ployer and
towardjgm-

today

satisfied

circle

between employment and lei¬

sure,

govern¬

tomorrow's

family

home-improvementj

eludes

issues are
looks

two
as

deal

working

richment

will

ployment
goals.
(1)
Is
our
objective the filling of a quota of
2,000-hour jobs (tnat is, 8 hours
times 5 days times 50 weeks), or
shall

is

and

the

growth of
great

a

satisfaction moved

self-movement."

of labor-man¬

area

negotiation

the

system,

show—in

ures

Ho w Much Leisure and Work?
In this broad

great

a

population
is
the social product far
beyond what the commercial fig¬

leisure.

agement

is

enlarging

total population — in other
words, the best public policy as to
vs

of

leisured

he

work

work-input period.
impact of the loss

ambit of the market. Now a more

produc-

satisfaction

With

area.

factory

out

general

economy's

is

This

productivity out¬
statistically
recorded

of direct want

inent to the issue of what division
tween

livelihood.

social

the

market

pattern
of
organized
labor's
wage-and-hours philosophy, col¬
lective
bargaining strategy, and
political pressures. But primarily
he economist's analyses are per-

aximize

say

"tourism."

of

area

side,

decisions

the

or

may

leads to the growth of

sure

labor

the

their group

of

quences

Jgi

pro¬

leisure

with

emerges,

progressively better equip¬
But what may not be so well
ment and organization so
as
to
recognized is that expanded lei-,
develop its full productive poten¬

kind

of

and

Much the
the

and its

offer rather
policy-making offi¬

committees

or

we

workers'

workers

shorter work year and working
lifetime as it could with a longer

If

poison,"

some

and in

between
his

and

highly

conspicuously illustrated in our
nourishing amusement industries

They

the

to

cials

he

work

leisure.

if

more

he

of

kind

lis

alternatives

of

choices

rs,

man's

that

individual in resolving his

the

to

commercial

rich and

other workers'

The economist's tools offer little

rt.

goods

paraphrase the
"one man's meat is an¬

old adage

government, notably
security provisions.

social

of

of leisure time. To

of

tions

the

killing

is shaped also by the
legislative and administrative ac¬

th

for

subsistence .needs or refine¬
ments but for the filling or

ployers. It

ii-

production

a

ac¬

the sup¬

for

important extent through the
institutions of unionism and the
controls and the competitive prac¬
tices of corporate and other em¬

iy

not

society,
many
business
enterprises are directed to supply¬
ing goods or services desired not

an

fts

for

market. In

quit his job. But the concept of
optimum employment that we are
evolving in our highly organized
industrial society is formulated to

er

is

goods and creates

consumer

services

for

nological condition

a con¬

alternative
to

living

a

ductive

ply of

extent

demand
and

recreation.

It-

ce

Employment

siderable

it should be
axiomatic that the.

economy,
even

of

their dependents as a whole can¬
not be raised as
high in the long
run,
and under whatever tech¬

The first is that leisure
nd public,
between work and
leisure in a free society. If the', simply non-work but is, to

.of

id

or

plane

111

CUSTOMERS-CONTINUING ITS EXPANSION PROGRAM

page

can

113

and Financial Chronicle

The Commercial
112

industry's business accounted for almost $3 billion in
during 1956.
It may be expected to increase by
more than 10% in 1957.
Production of-transistors, com¬

television will lead the field.

expects an increase in the dollar volume of its
appliance sales. In November, 1956, Philco ac¬

Philco

will

1957

in

and

laundry equipment business

home

Bendix

the

quired

independent company

the largest

be

home

appliance industry. While sales of refrigerators,
freezers and electric ranges should continue at

good

levels,

in the

in

increases are expected
air conditioners.

substantial

washers, dryers and room

company's history.

the

in

sales

puters and industrial

already on

others

Seaboard's motive power was
receipt of 25 new diesel freight
locomotives toward the end of 1956.
<
While the developments which have taken place in
the Southeast in recent years may well be described as
1957.

will be delivered in

increased by the

also

that

indicate

the

of

promise

the

ahead

years

is

any

increasingly conscious of

bright. A vigorous region,

less

the picture today to

nothing in

there is

spectacular,

and potentials it possesses, the Southeast looks
confidently to a future of still greater growth

the power
forward

economic activity.

and

Creative

selling and merchandising will be necessary
appliance industry is to capture a large share of
the consumer's dollar.
With industry turning out more

SMITH

G.

RICHARD

if the

a

The

are

forecast

further in the

R.

reasonable increase in airline

to

partially

compensate

higher costs of aircraft, salaries and
services, materiel, and interest rates.
But

with

even

airline

a

the

fares

increase

modest

-

-

lieve the trend will

tant

a

*n

and

industry orders

for

aircraft,

Past 15

the

financing

necessary

should

be

JOHN W.

There

Seaboard

Air

Railroad

Company

are

are

dustrial

has

created

activity in Western Europe
demands for fuels and the inade¬

greater

of that region's coal production capacity, plus the

Increasing industrialization in our own territory, par¬
ticularly in the heavy industrial chemistry industry, is
increasing the volume of our freight traffic other than

many
factors contributing today to the
steadily growing economic strength of the Southeastern
section of the
country which indicate that this region
will continue the
impressive advance it has made in

coal.

recent j^ears.

stantial additions to

region

is

Business activity in the

steadily

diversified

facilities

and

becoming
new

being

are

To meet this

situation,
our

we have made during 1956 sub¬
freight car equipment, most par¬

ticularly coal cars which are now at an all-time peak of
capacity.
Further substantial additions are scheduled

more

production
added not only
.

for

1957.

A

for supplying demands outside of the
area
but also to meet the

prevails in

business out¬

territory.

our

growing requirements of the South¬
eastern market for all
types of goods
and services.
Higher

W.

capita in¬
come
and
an
increased population
in the states served
by the Seaboard
—Virginia, the Carolinas, Georgia,.
per

Florida

and

Alabama

responsible
numerous

all

of

for

the

have

added

to

the economic upsurge taking place in
Industrial development

John w.

Smith

maintained
„

gratifying

a

than

yearmore

160

new

in

pace

ment

1956

industries

and

were

during that

located

along

building

several

indicates

years

mill

program

mill

One

c^f the

the

territory's output

heavy production is the

paperboard

mills

in

the

last

few

the totaLproduction in the states
served

South¬

record of paper
years.

In

1941

by the Seaboard

7'ftOO tons daily; by 1951, this figure had risen

16,000/ons daily, and in 1956

it

was

to

running at the rate
Expansions and new

of approximately 22,000 tons
daily.
plants planned for the area in 1957 and later will
further

increase

this

Another

total

bright

ployed

is

for

the

Southeastern

Having

development

and

expansion

of

the

economy.

the

deep confidence in the future prospects for
this section, the Seaboard in 1956
took additional
to

prepare

for

steps
increased service demands
which it
result of the continued economic
growth

the

anticipates

as a

of its

territory.

2,400

new

During the year orders
freight cars, costing about




were

placed for

$20,000,000

and

goods

is

can

plate

finished

steel

products
as

not

only

also

but

that

re¬

be

in

mills

to

/

Within five years

capacity

for

these

new

Interest also continues in

new

and

W.

ing

merchant

growth has subsided
of

Snyder,

both

of

mistic about the future.

and

more

New horizons for stainless and

have

aviation

watched

tion
and

the

■

past year,

in

we

the

growing trend in the carbonated beverage
field to package its product in cans.
We believe it will
someday be a significant phase of our over-all opera¬

tions^

Now,

we

able

are

to report

another

as

can-packaging of non-food products, such
detergents. We believe these two burgeoning trends

will

continue
is

to

rise.

apparent to

me, looking into 1957, that the can
industry will continue its rapid expansion. Based on
prophesied good general business conditions, the increas¬
ing popularity of can-packaged products, and the con¬
tinuing introduction of new products to be packaged in

I

can

see

even

favorable business conditions

more

industry in 1957.
REUBEN

E.

SOMMER

President and General Manager,

Keystone Steel & Wire Company

sales,

employment
levels in
was

This

at

pansion

and

plant

1956, profits

due

was

an

Keystone's
of

and

company's
steel

sheet

steel

a

expansion

per

special cold

mills

to

principally to increases
which

specialty steel require¬

apparently cannot withstand the "thermal barrier"
this gives stainless and other
alloy steels a new

-

a

*

more
."i

instituted in

offset

the

last

wage

and

expansion

pro¬

of

plant

begun
saw

the

billef mill addition
year,

as

well

improvements

as

in

ex¬

mills.

the

plant, wire and
This expansion program

power

Keystone is not
limted
to
its
Peoria plant. A Keystone
subsidiary,
the National Lock
Company at Rock-

R.

E.

in

Sommer

111., began construction of a $5-million threaded
fastener plant, the largest of its kind in the world. Addi¬

tions

have

sidiaries,

also

been

made

to

Mid-States

Steel

&

plants

of

two

other sub¬

Wire Company of Crawfordsville, Ind., and Wire Specialties Company at Santa
Clara, Calif.
While

it

is

not

possible

for

any

individual

or

of individuals to foresee what
condtions will be

background

in raw

has

ford,

opened up by the advance in speeds
missiles involving very high frictional
Metals formerly used in aircraft construc¬

chemical engineering services to

have

dollar of sales

at

been

opportunity for growth.
In light of our company's

significant

trend—the

steel

and

temperatures.

;*
'/■* . >
y,
the 'can industry have
_

During

v,

other

permit the "tailored" finishing of strip items.
ments

of

shortly after World War II

temporarily, the industry is estab¬

more

proc¬

But of
can be

these

Continuation of

Jr.

or

which keeps costs low and which aids in
the product it contains—and cans provide
"extra" services—can logically be opti^

process

the sales

gram

bars,

because

frozen

attractively and multi-packed so conveniently.
labeling leads to impulse sales and multif
packaging increases the "take-home" appeal. A packag¬

during the past

C.

shapes, tubing, sheets and
Although the surge in strip or

for

superior

Attractive

completion

rolling facilities

use

contributes

labeled

industry-wide round
salary increases.

areas.

lishing the

Man¬

economically
it

essed, and packaged, at high speed and low cost.
equal importance is the fact that the container

selling prices which
July did not fully

improved
products.

economically

course,

cost, particularly steel scrap
than doubled in price during the
past
two years.
Also, the increase in our

ad¬

regions,
as
expansion in the established

producing

of

declined.

increasing demand for these

should

well

structural

products.

there

been

goods have found that

material

and

pref¬

cans—has

in

be filled, closed, pasteurized,

reached record

next

years.

meet the

of

a

for

container,

a

are,

can

While

rods,

considerably.

spot in the future outlook for the
found in the research
programs which are
under way in the legion. From
these new and enlarged
laboratories will come fresh
knowledge of how the vast
natural lesouices of the area
may be still better em¬
Southeast

Cans

a

new
blooming and slabbing
facilities, together with addi¬

tional

most impressive evidences of the

east's growth in

and

in

latter factor—consumer

ufacturers of
the

as

capacity will

quires

tries, (with

a resultant increase
of manufactured goods.

Solinsky

superior

cans,

equip¬

and

in

The emphasis at present is on
ditional
ingot tonnage, which

Sgaboaitd rails. At the same time there were a number
of
sizable expansions made by already existing indus¬

pref¬

a

try over the last half century.

S.

Ronert

steel

during the next 10
very active rolling

this section.

v

SNYDER, JR.

Predictions by the steel industry that its
be expanded at least 30 million tons

of

is showing

consumer

be¬

immensely important to the almost
miraculous growth of the can indus-i

for the

enterprises,

been

This

industry has begun its most creative era of
development and growth, and one which from all indi¬
cation, should extend many years.

been

creation

business

new

which

have

—

CORDES

President, Blaw-Knox Co.
The

are

that the

for

erence

It

general feeling of optimism over the

look

rapidly

and

they

uncertainty of oil supplies from the Near East, have sub¬
stantially boosted the demands for American coal.

SMITH

Line

cans,

can-packaged goods ove^'
other type of container.

any

gener¬

mbving in rec¬
ord volume,
with every indication
that they will continue and possibly
increase.
The sharp revival in in¬

H. Smith

k.

quacy

President,

in

greatly to the merchandising of the product.

Exports of coal

completed their financing program. Tighter

earnings

power

products

more

future.

and higher interest rates will bring some difficul¬
ties, but if the regulatory agency will permit reasonable
and

and

ing at all-time high levels, with fur¬
ther expansion projected for the near

including

possible.

electric

ating and the steel industries, most
important users of coal, are operat¬

money

fares

general
erence

approaching the peaks of

The

faster than the

industry already know—

can

more

ing packaged

Norfolk

of

volume

can

significantly

the

that

Western's freight business, from
comes
95% of its gross rev¬

1947-48.

turbo-jet planes, now
dollars. Financing will take the form of both additional
equity financing and sale of long-term debt. Part of this
has already been arranged but some of the
companies
have not yet

the

extent

1954 and is

turbo-prop
amounts to about two billion

new

in

The

is dependent upon the coal
industry.
This industry has come
back sharply from its low level of

aircraft, in great number, will be added to
.industry fleet during 1959 and 1960. The total of

and

rise

enues,

New model

the

1957.

which

and during the past five years
reduction in average fare.

years

actually been

for

steadily through 1956 and we be¬
continue during 1957. To an impor¬

remain

*lave r*sen only

R. Smith
*

outlook

the

about

1955 has continued

basis, for average fares
of first class and coach)

(average
C

in

price of air trans¬
on a relative

will

"bargain"

•

optimistic

are

are

this prognosis

growth of the population. This sta¬
tistic merely authenticates what we

I

improvement in general business conditions that started

in

portation

there has

We

conditions

The consumption of cans continues

President, Norfolk and Western Railway Company

try believe that there must soon be

fares,
for
the

SMITH

H.

clear and

appears

business

extremely favorable for

as

to

gbods and services purchased
continue to rise. Many in the indus¬

industry

can

rising sales volume for the can company with
an alert and aggressive management.

a

mean

doldrums.

and

narrow

costs of

a

SOLINSKY

General

1957.

for

optimistic

the

for

outlook

The

gold mining goes

bring an

and help

President, National Can Corporation

ume.
mi

they will tend to extend the

ROBERT S.
making,

additional increase in air traffic vol-

Profit

examples which
new
of steel plant operatiop.; Together

few

a

pickle
!

'« ' •
indicate the

industry's growth along profitable lines
stretch its much-needed capital dollars.'^

to

in

still

that should

and

1957

regenerate ( waste

.

steel

profit for most of the carriers in the industry.
Good business conditions are expected to continue dur¬
ing

and

salvage

to

other developments,

with

inflation

good for the airlines; it provided a
in total traffic and a reasonable

increase

facility employs the Blaw-Knox Ruth-

new

process

These

the

m

as

American Airlines, Inc.

President,
The year 1956 was
substantial

gas

chemical orientation

SMITH

R.

plant to recover hydrogen from coke oven
starting point in the making of ammonia and
other chemical products.
The use of oxygen in steel
making by means of the lance process should have rapid
growth, since it has been demonstrated to permit a
financial shortcut to expanded open hearth capacity.
A pilot plant at Niles, Ohio, financed by seven steel
companies and Blaw-Knox, is now proving up another
application of chemical processing in steel industry oper¬
western steel

liquor.

new

C.

position in chemicals through the upgrading of its by¬
products made possible by modern chemical processing.
Blaw-Knox now is completing an
installation in a

ner

With

more

ndustries, we anticipate that Blaw-Knox also will benefrom growth in steel plant use of chemical processes.1
Steel now has opportunity to establish a more profitable

At

ations.

President, Natomas Co.

products, greater emphasis must be placed on
designs and unique features to create demand.
This trend will be apparent throughout the appliance
industry during 1957.
>
and

of freight cars
These cars, along with 1,000
order at the beginning of the year,

representing the largest single purchase

110

Continued from page

home

Thursday, January 17, 1957

...

'

(308)

group

through-

providing

wide range of process

Continued

on

page

114

185

Volume

-

Number 5604

The Commercial and

. . .

(309)

Continued from page 111

such simple quantifications of

early
or

Ideal and Working Concepts
01 Full
and

1940's

sanctified
of

must be
say,

they are to survive in policy¬
making posts.1*)
But

in

the

which

I

am

is

needed

as

to

tific

that growth

specify

$20

billion

GNP

in

or

passing give us

before

never

stainless steel,

"more

jobs than

or

alloy
metal
equipment;
for what are approxi¬ other
laboratory conditions welded and riveted steel products,
for the deriving of scien¬ and earth-moving equipment. '-

principles.

For

Offer Underwritten

priorities, and proportions must be

Steel In¬

dustries, Inc. is offering to holders
of its common stock rights to sub¬
scribe for

$11.50

of

one

per

subscription price
on the basis

share,

additional

share

for

and with minimum resort to

pace

problem of full employment and pened to be most strategically
growth.
But there is placed or most aggressive, the
nothing in the mechanics of a translating of productivity gains

interventions.

emergency

ficial

market economy predominantly into lower prices

price level

having a moderate but persistent
downward slope in a society of

high scientific and managerial at¬
would constitute

tainments. 'This

exemplification of Say's Law—
modernized—that is, operating un¬
an

der

astute large-unit

administra¬

tion rather than small-scale auto-

maticity.
to

Turning from mechanics

psychology, I would concede the

point to those who maintain that
businessmen. in their present en¬
vironment cannot or will not op¬
erate

such

on

broad

policies of
lead-

social benefit and that labor

Alongside Jacob Viner's deprecation
employment at whatever cost"
August 1950) \ve may place the
comment
of, Arthur Burns,
made after
he had for several years wrestled with
the
practical; ^problems
of interpreting
the Employment-Act: ■ ."In a high level
economy
such as ours, it - is but a nar¬
9

of

(over-all

operational

basis

of

leisure

free

competitive "big business" enter¬

prise.

A

better

use,

the

than

alternative

row

that

road

inflation

.

.

If

separates
we

are

to

recession

from

advance firmly

that

road, the Federal Government . . .
alert to changing conditions must pursue
monetary, fiscal, and housekeeping pol¬
icies with
skill and circumspection
[to
the end of balancing] reasonable fullness
of employment with reasonable stability
of prices." (Address before the Chamber
of Commerce of the'State of New York,
New

York

City,'Oct.

6,

1955.)

and

than

choices

are

but among

creasingly sophisticated leadership
to advance their group
through promotion of a

capital of the company. It is ex¬
pected that these net proceeds,

and

versus

together with other funds, will be
used to meet cash
requirements
for

proposed

Vis-a-vis provements

because

not mutually

the

exclusive

various combining pro¬

portions under a rule of reason.
In our free society of rising eco¬

^

Co.

With Allen Inv. Co.
(Special to The Financial Chronicle)

vestment

Company,

Mile

additions and im¬
of
the
company's

facilities.

dustries, Inc, is engaged primarily
in the manufacture

and sale

diversified line of metal

of

it

10

Jan.

Eugene
come

a

44

Wall

This

Street,

was

Vecchio

in

be

New

York

admitted

as

a

products.

nomic

Carroll Adds to Staff

sophistication, what is a
Among its principal products are
(Special to The Financial Chronicle)
application of any of insulated
copper wire and cable;
the several criteria is decided in
ture competitively shaped to maxi¬
DENVER, Colo. — Robert T.
plastic covered wire and fine flex¬
degree
under
the ible
mizing
employment
because
it considerable
wire; carbon, alloy and high¬ Kittleson has been added to the
maximizes consumption.
Toward guidance of technical experts on speed tool steel and forgings; wire staff of Carroll & Co., Denver
the professional staffs in the ad¬
such a goal the Employment Act,
screen
cloth; high quality non- Club Building. He was previously
offices
of business,
with its socially oriented intel- ministrative
ferrous alloys; life boats and'life with Birkenmayer & Co.
labor, academic, and governmental
lectural apparatus, will, I believe,
agencies. It is inevitable that the
mark an important milestone.
practical judgments of even the
:!:
*
interest

salf-sustaining price-income struc¬

reasonable

economists

best-trained

shall 4 be

Summary

strongly suffused with subjective
By way of brief summary, I of¬ value judgments. If their profes¬
fer three general propositions:
sional
training has - been suffi¬
(1) Today's economic thinking ciently broad, these value judg¬
about

employment

substantial

policy

shows

movement away from

the

the ag¬
auto¬
mobile workers has recognized the selfdefeating character of
the inflationary
process
of
wage-price
"leapfrogging"
when he laments that hard-won wage in¬
creases
are
"paid in wooden nickels."
10 But

gressive

Mr.

even

and

Reuther

strategically

of

placed

will

ments

adjacent

but

science,
tiveness
and

as

derive

not

sonal prejudice

from

>

per¬

and naivete as to
areas
of
social

from

some

percep-

to issues in these fields
with "profes¬

collaboration
in

sionals

the

Fortunately,

sister

the

disciplines.

years

through

CO.

to

im-i9§

serve

.

.

in this area.

Convenient Offices

Your

inquiry invited

ITS CUSTOMERS.

COMMUNITY, AND ITS
THE PAST

who

.

INDEPENDENT BRASS COMPANY
BEEN SERVING

Connecticut needs

may JjeJocating

GREAT INDUSTRY

PIONEERS IN A

your

and those of your customers

11

FOR

COUNTRY.,

NINETY-TWO YEARS.
'

Connecticut
National Bank
BRIDGEPORT

BRIDGEPORT
....OttOIT
«/. ..

"Vj-




general

partners.

"Bridgeport"

ITS

City.

—
Miss Del
McDonald wiD

error

Mr.

and

BRASS

HAS

that

reported

was

M. McDonald would be¬
general partner and Miss

Mary Del Vecchio a limited part¬
ner in Peter P. McDermott & Co.,

both

Continental Copper & Steel In¬

"Financial Chronicle" of

In the

BRIDGEPORT BRASS

THIS

High

Center.

of

initially be added to the working

unit.

monetary

sale

lie

distribution

its

the

choice

(c) vis-a-vis stability of

and

and Abraham &

Correction

proceeds from

satisfactions

(a) vis-a¬
action, (b) vis-a-vis

are:
Co. Inc.; Bernard

Co.; Auchincloss, Par¬
Redpath; Goodbody & Co.,

Company.
the additional common shares will

by groups)

rather

complacent inflation backstopped
by standby controls is the selfdiscipline of groups under in¬
seeking

or

Com¬

&

shares held of record Jan.

of¬

individual

Allen

underwriting

1957.

of

issues

consumer

vis freedom of

"full

(QJE,

on

able

and

sharpest

between

precludes maximum produc¬ would so maximize real purchas¬
tion and vigorous growth with di¬ ing power en masse as to maxi¬
verse
movements of individual mize employment on a maintain¬

that

prices adding up to a

The

net

10,
DENVER, Colo. — Mrs. Ida N.
Subscription rights will ex¬ Allen, Mrs. Mabel A. Davenport,
David S. Grogan, and George H.
pire at 3:30 p.m. (EST) on Jan.
28, 1957.
Joseph are now with Allen In¬

ten

Net

(3)

sub¬

Aronson &
ker &

each

1880's. Though there
quite aware that many will
would be less proximate gain from carefully evaluated in their time
far as I do in refusing to
perspective, seeking self-sustain¬
The offering is being underwrit¬
and organizational
accept price inflation or even price technological
ing patterns of economic growth
ten
by
an
investment banking
level stability as the only solu¬ innovations accruing to those capi¬ with
only moderate changes of
talist or labor groups who hap¬
syndicate managed by Allen &
tions theoretically possible to the
not go as

30,

June

170,297 additional shares

of common, at a
of

with

the

in

W. Brooks &

P.

ended

$73,332,215

Associated
pany

Continental Copper &

year

company and its
had
consolidated

and consoli¬
net income of $4,011,038.

of

sales
dated

"jobs for all the

the

the

sidiaries

& Steel Industries

unem¬

an

economic

monel and

the

that

ideals
within.our total technique of so or
with short-run working programs
administering our free economy as icy would require no more revolu¬
places
emphasis
on
qualitative
to move it consistently and per¬ tionary change in the mores of
sistently, even if not at an abso¬ business (including labor) admin¬ analysis of the intensivity of labor
utilization as one facet of a com¬
lutely steady pace, toward maxi¬ istration and in our business in¬
mum real income for the
whole stitutions than today's policies and plex objective of sustained eco¬
nomic progress in which choices,
practices mark in contrast with
people.

truly competitive

'and

equipment;

riveted

Continental Copper

enough"

speaking, the people all the time."
anti-inflationary
(2) Combining long-run
constructively deflationary pol¬

I am

welded

saving

tenable than the earlier

no more

ployed men"

those of the

now

1956,

here

acceptance of

are

equalled

Substitu¬
"economic
in the right direc¬

or

by annual increments of,

formulas

long-run context in

ex¬

mately

terms

"no previous year is good

if

in

gap

we

opportunity

an

concept

moves

tion, but

exploit group strength
strategic position aggressively

which

percentage.
the

growth"

the

million jobs!'
a

numerical

tion

Employment

"60

as

unemployment

an

plicit

must

ers

prudently and safely
in the short run.9 Equally eschew¬
ing doctrinaire full employment
at whatever cost and an ever- bal¬
anced budget at whatever cost, we
should make intensivity of labor
utilization a contingent factor
used both

be

113

Financial Chronicle

.«ASS

COMMNlf.

BRASS

ERIDGEFOiT >. COMM

•

EEU.USHED ...5

Member

Federal Deposif Insurance

Corporation

114

(310)

The Commercial and Financial Chronicle

Continued

from

could take effect.

112

page

We may

diate

coming

months

for that matter, in the imme¬
fully anticipate that business
sharp upturns or downturns dur¬

year—nor,

What

ahead—we

should

experience no
ing 1957. Of course, any outlook must be predicated on
the assumption that no catastrophic developments in the
international situation will

Under

all

skills

our

to

meet

and

overcome

immediately ahead?.

Branch

to

voltage transmission lines operating at 345,000
volts.

„.

*

of

system

our

it rests upon the
and present coordinated
can comment, specifically

government,

arrive

at

it

nomic

.

report,

and

such

other

recommendations

Executive Department feels desirable.
tiru
±u
r>
:'a
'vtl

.

;

.

SPECHT

chllv o/cSs otce

thc

President and Chairman, Armour and Company
We have every

hope in 1957 for

continuation of the

a

bUS'neSS WhKh

°Ur

mad write
wiite

reC°rded

WaS

ln

.

the

,

v.

;

the passt

That
x
rtt

own
uvvu.

11&

modbvit

it

latter'course
c
f

was

.

.

..

Cong^ th^case of hou^ng

'or reject U
'followed by
hw, flv leeis-

industry depends
cattle, hogs, and

on

in

the

sheep

to
market.
There
will
be
fewer hogs in 1957, which is an
un-,
favorable factor.
It may well be,-

however, that the decrease in

1957.

num¬

';V;

will

markets

be

for

offset

pork

.

by

stable

more

and

more

tunity for profitable operation than
experienced in 1956.

was

not now share in it.

Supplies of cattle should continue
a
very high level, and the de¬
crease
in pork supplies should im¬
prove the demand for beef.

.

*/

.

„

r

.

We

also look

supplies

of

forward to adequate

dairy

products,

1956

poultry

and
F.

W.

eggs.
Per capita

Specht

1956

reached

the

all-time

man

mand

of

On

high

the

it

For

S.

JOHN

SPARKMAN

Senator from

.

extension

Alabama

More

know with

certain

to

name

eral

budget
In

year.

coming
present

inter¬

Sen.

John

It is perhaps harder to foresee
the trend in

consumer

speeding, but relatively full employment,
increasing dis¬
posable income, and
ever-increasing spending on non-

nomic

consumers

will

high level of

eco¬

activity.

the

,

added

in

unrest

the

satellite

countries

for

A

small

amount

capacity is

result

might

of

going to

nuclear fuel.

in

continuation

a

On the domestic scene
it is obvious that
economy, the housing
are

in trouble.

it

persons

and

those




relaxation of Uxe

$5.9

billion

1955

And

even

of

at

that

should
will

progress

On

the

take

mask

made

atomic

the

along

power,

amount will

fact

the

even
,,

is

progress

not

be

that

road

of

The

progress.

continuation

which

with

the

particular

of

end

equipment.

Developments

a

of

new

to

order

which

our

witness

the

AGE

an|

of precision in-the
physical toler¬
products must be manufactured
Ink

au¬

with

fixed

in¬

tight money

policy

the

other

heaviest

more

ously .pushed during the
demand

ot

the

system,

1956, should show
of

4,200,000

kw,

an

and

year.4

which

+.

system

some

input

12%

and

to

of

and other

last year

.

of

and

the

loads

process of

the

AGE

system

is

in

carrying out the largest expansion, in
electric
generating and transmission facilities in
the history of
power
industry. This involves the addition of a
total of 2,800,000 kw and
the expenditure of over
——J

*

——

the

milliun in
of

the

$^00

five-year period 1950-1960. Of the total
2r8OO,O0O kw, 775,000 kw will be
brought into opera-

met

without

undue
„

i&f:

increase

.

and that makes it

of the

ven^

by our industry toward

a

as

year

are

favorable, in

of these-

result

a

progress was

satisfactory

this progress should
continue in 1957.

coming

as

a

result of

disappointing

total inventories at
_t_

fit

an

my

solution|:

lot

opinion, despite:

retail sales in late

field..;

months!

1956

and

all-time hi<*h of about 2% million

-

^

\

/

-

further increase in deliveries

may

rise by

level, resulting

of

military electronics,

Sain of at
10% may be expected in
the industrial and
commercial field. I would
therefore,
anticipate total industry
volume in excess of $6 billion
m

a

1a„ „
±.
1957 for +.
the first

achievements

.

y volume

..

time,

as

well

in many areas
of

component parts.

;

excess ot $b Dim

as

-

madefy

Prospects

close of 1956. Defense spending
several billion dollars from the current
a

T

•

problem facing bottit:

ma^ be at a somewhat lower level in the
early

figure

,

jj

vital,jC

the fact that
operations in the home
entertainment

system

..

these

be

technological changes, good

and 1 believe

care

whose proper operation is

equipment and parts
manufacturers

in

,

J

the|

probably fake
and reliabilit;

.

•

.

will

quality

f

"

take

radios

weight of the device,

mfflfon!Vely' T°tal reVe"UeS Sh°UW
To

must

r

*

energy
sales should reach 25.5 billion
kwh and 23.3 billion
kwh,

_

portable

Despite the complex nature

in

reaCh Cl°Se tD $3°°

been

reliability^
whicl|

system

a

development has

much more difficult
to attain desired levels of
in the end
product and in the
component parts of
it is composed.

Consequently the peak

increase,of

>

„

*

will

3,750,000 kw

and

military electronics

requirements

electrometallurgical

reached

toL

considered
•
'

complex industrial and commercial^
devices such as digital
computers, where the incidence ol
use
of electronic
components is very high.
Somewhat
related to
'reliability is the matter of much more severe;,
operating conditions, including
temperatures in excess
of 1,000
degress Fahrenheit and vibrations.'as high a!n
2,000-5,000 cycles, per second, under which
electronic.,;
equipment is being called upon to
operate.
All these

as,

conventional

important

approaches to

and^ increasingly in

because of its unique
ability to supply the special kinds
of power, large blocks
and at reasonable
cost,* required
for chemical, electrochemical
to

very

auto' radios

other

con¬

expansion

thisp

The third of the
important technological changes tak-J
ing place in electronics is the great
emphasis being placed;,
on what is called
reliability, particularly in airborne andk:

apparent 1

year

along

tfansistors will expand their
utility in industrial an
military electronics. From the parts
standpoint,, this'will
also mean increased
demand for other components spe¬
cially designed to work well in transistorized circuits,

developing

the

of

on

operations, and for

concen¬

expenditure, of

of

be what

will

country

vigor

the

and

change that hav
industry for the past sev

place, while improvements in the

considerable

of

though

system, 1957 will also be

facilities

place

factory,||

figure, and a further increase of about™
50%,can be expected in 1957.
Increasing transistorization I

-

going to be small.

AGE

infj

the

increasing use of. transistors and other
semi-conductors,g
Transistor:production in 1956 was more than triple- the

of the United States will again be
negligible.

energy

But

i
re-

previous year's

truly gigantic increase in,
atomic, that is, it will exploit

that small

and

figure.

continuation

a

innovation

electronics

resulted. in. the

A-second

*

recent months.

monetary

or continued too
long, thereby inducing unwanted
defla¬
tion with
unemployment and its own
hardships.
This was the case in
1954.
Fortunately we had the
built-in economic
safeguards of the 1930's and
1940's.
The safeguards
checked the downward
plunge of the

a

saw

equipment

a

>

methods, is going to be vigor-

small

the other
hand, there is the ever-present
danger that monetary restrictions
can be pressed too
far

until

billion for the first

small increase in deliv¬
resulted in an increase

above the

for

one

enter¬

hand, substantial gains

yet none of the dozen or so different
automatic assembly has been
generally
have a clear-cut
advantage.

the

been

parts of

On

economy

of

general industry from the
lightest
for example, chlorine,
ferro-alloys,
steel, rubber, aluminum and coal. And
the program of
developing the all-electric home, including both electric
heating and air conditioning by the heat
pump,
and

some

We, of course,
against inflation with the
hardships which

brings for retired

comes.

the

to

the

Second place, programs of standardization
;in elec¬
tronic parts have been set back
quite a few years because

called experimental, in that future atomic
developments will undoubtedly cause its obso¬
lescence, partially or in whole, well before it reaches
the end of its physical life.
Thus, the role that atomic
power will play in 1957 in
contributing to the supply

capital

inflationary forces, there has*

creeping rise in the price level
during
Our credit
policy bears careful watching.
want to ward

8%

in

the

be

tinuing

industry, farming, and

In spite of the
proclaimed efforts of the
thorities to restrain
a

approximately

commercial

defense

fifty-six

of

have

ances

this

be

and

business,

and

volume

pressures

entirely
-c

power

dramatically

planning our programs and
economic policies with an
eye to
strengthening not only
ourselves but our allies
and friends in all
parts of the
world.
the

Sporn

r

^

period 1956-1960 to close to 50 million kw.

East

the

need

Philip

'

some

competitive

As is to be
expected in a

demonstrate

Product,

6.7 million kw of
generating capacity
will, in the coming year, add a total of 9,400,000 kw,
and during the next three
years will add enough addi¬
tional capacity to bring the total added in
the five-year

con¬

dynamic economy such as we
enjoy, there are always some weak
spots that need
watching. The serious disturbances in the Middle
and

1956

Sparkman

All

a

to

dollar sales

a- good
manyp
millions of dollars by end
equipment producers, and have-?*
also had important
implications for makers of cornpo-V
nent parts.
In the first place, they have introduced

over
600 billion kwh, will show an increase
in 1957, to reach a figure of 655 billion kwh. To
meet this demand the utilities of the
country, which in

present indications are that
expenditures for plant
and equipment will continue at
a high pace,
although the
relatively tight money market and
already substantial
expansion in recent years may tend to slow the
pace as
the year advances.

maintaining

line

of 9%

highways,

durables and services
suggest that
tribute their share to

in

On the other

electronic

assembly

slightly

increased outlays under the combined
soil-bank and farm
price-support programs. There is also the possibility that
a
program of Federal aid for school construction
may be
under way before the end of
1957.

-

the

.

at all

be increased Federal aid
to

portables

I

During the year, manufacturers of both equip
parts were affected by three
majof'l
developments of this nature. The first of these is auto
mation, or more properly automatic methods for th

.

national

situation, however, it is not
unlikely that defense spending
may rise by as much as $2 bfllion.
Moreover, it is likely that there will

should

t

eral years.

energy in the industrial and commercial fields and
in the residential field, both urban and
rural. Translated
into more specific terms the
production of the utility
systems in the United States, .which in 1956 totaled

fiscal

the

these

c

ment and component

and

for the Fed¬

the

of

industry

characterized

*'

.

for

trated

expansion of capital facilities. This, together with the
higher personal income, can result in nothing else but
a continued expansion in the
demand for electric power

the

certainty what the

for

view

few.

a

1951.

Nineteen

as

supply and price structures
materials—coppery aluminum and steel,

raw

but

s

to

resulted

industrial

which is about

the

on

r

fairly, good-year for the

a

came

of

total

eries

?-

de¬

that

was

as

All

are

advance

pressures

of

plans of both government and busi¬
ness.
It is, of
course, too early for
to

the

v

C

1956

category falling below $1

total,

,>

specifically, 1957 should show

nificant

of the recent
past.

Administration plans

of

increased Gross National

an

high level of activity will con¬
tinue well into 1957.
Economic ac¬
tivity for the year as a whole should
equal and perhaps surpass the levels
are

that

1

SPRAGUE

placement parts, together with

greater industrial production, greater
employment, higher wages and sig-

this

prospect

States, giving

the

of

sales

its crippling

indication

of

time since

be

to

course.

American economy has been making
almost * uninterruptedly
since 1945.

experts, that

this

United

whole,

proportion

tainment

supply of western
tight money situation

clear

a

had

their

run

the

third

than
To give that result

for capital is running ahead
capital formation; and the un¬
remitting inflationary pressures. In
spite of all these, 1957 promises an

months the economy has been
running at a
high level, with available resources employed to the
point;
where inflationary forces are
markedly present in most,
although not all, segments. It now appears, and I believe
is the consensus of the

us

does

in

oil

the

in the

Company

factors

@| *'

>

slightly less than 7 million
units, compared to 7.4 million in 1955, and an
increase

business: year

economic

operationHf

AGE. system.

industry, although the late fall proved quite
disappointing in the home entertainment market. Retail

mand

some

Supporting

unfavorable

Willi

electronics

of

"

U.

the

on

Europe;
here

food, points to a good future for businesses
engaged in
processing farm products.

HON.

better

a

a

Suez situation with

effect

per acre.
This fact, coupled with the de¬
rising population for more food and better

r

be

the

sales of television sets

number of which have not
Among
these
are
the
unsettled
international
picture,
particularly

and
a

to

out

many

hurdled,

of
This vast volume was produced by Amer¬
ican agriculture despite severe
drought conditions in
some important livestock
producing sections. There has
been a steady improvement in
agricultural production
per

great

a

consumption of meat in

163 ^ pounds.

turned

01

1,1

President,. Sprague Electric Company

v

and Electric

generally predicted at its beginning.

Revere
.

JULIAN E.

SPORN

President, American Gas

inni

(13

IncludS
combine-;!

-

will -be coordinated with that of the

at

PHILIP

thermal!

requirement!
coal

power to: its 180,000 ton a year
reduction andl
rolling mill operation of Olin Mathieson
ChemicalL
Corporation at Clarington, Ohio, but whose

Legislation relating to housing and small business could
very well enhance the outlook for general
prosperity and
extend the fruits of private
enterprise-to many who do

oppor¬

value

to the

;

V

•

owned by Olin
supply

many cases.

^

bers

r

Briefly, then, the outlook for increased ..expenditures
in foreign affairs
programs, and in such domestic-areas
as
highways, school construction, farm, and expansion in
private construction point to general prosperity during

sent

heat

rating of 450,000 lew installed in the Kammer Station
^wer'"Company: at Cresaps,; West Virginia; to

more

Volume In the meat packing
number of

%,lb..of standard

Btu/lb.) per kwh of electric energy generated.
in this-ftap^t* too, win be4wo units with a

g

y

being 1050 F. These will attain new standards
efficiency of over 40%, equivalent to the
than

_

reheat]
temperatures!
of

the initial temperature and the two reheat

of. less

Hp

Congre^ wfll StalKtoWteprocedure
Congress will
than likely

just closed.

year

ite

cum

J

will!

w

.

W will"'

these

_

*

■

of

new
generating units :,will operate
of 2,000 psi or above, and two of these
represent units of 450,000 kw rating
operating at
supercritical pressure of 3,500 psi with double

.the

as

;A11

pressures

■

F. W.

majoll

load

implications of this outlook for legisla¬

economic policies. Before one
on the course of
probable legislation,.we must await the
presentation .of the President's budget, his. annual eco-

One thing is certain—
competition will be much keener in the year ahead, and

will require
successfully.

the

are

Executive

occur.

1957, 1,575,000 kw in 1958, and 450,000
kw
This generating capacity will be tied to
the
centers of the system
by a series of extra hi J

1959.

tion in the months

195J

tion.in

be on the verge of a similar

situation.
out the

Thursday, January 17,

...

significant technical

electronic equipment

Continued

on

pagd

and

11^
f

195?

w

Number 5604

185

Volume

. . .

The Commercial and&Financial

j ,1

Chronicle

,,

I

|

'

,

subsidiary of the Chicago & East¬

jJ

Illinois.

ern

najOf|

To handle the

in

ance

of

1954-55

debenture

income

heavy

//'

of

exchange for like par amount of

the Chicago & -Eastern
Illinois ordered 400 additional box

higil

the

source,

cars

By GERALD D. McKEEVER

of

been

Chicago & Eastern Illinois
cline

and four diesels.

the

and

American

completed
the

at

A

at

Terre

Haute,

place, Anaconda
Company is building a large alu¬

in

same

of

the coal traffic of the
minum rolling mill.
868-mile Chicago & East¬
Also, it was
■CDicago & Eastern Illinois from
ern Illinois is one of the smallest
recently reported that the road
rf. Class I roads, but it seems to
iL/i 0 total tonnage as late as plans to sell 30 to 50 acres to Vic¬
be turning
into a lusty infant. 1920, and 59% as recently as 1935, tor Chemical, if Chicago zoning

The

to

a

bonds.

value class A
of about 307,600 shares under this offer, has
reduced the outstanding balance
of class A to 76,119 shares.
This
stock is followed by 413,529 shares

has

Co.

$40

more

par

11 months

up 9,6% and October
revenues were up 14.4% and No¬
vember 8.3% over the correspond¬
ing 1955 periods, placing this road
of 1956 were

price of this stock to per
on
the present
stock capital is thus illusory. Po¬
tential dilution is bound to put
the brakes
on
substantial price

appreciation unless there is an ex¬
traordinary increase in earnings,
lative
dividend, its replacement- and another retarding factor may
be found in the fact that 1956 net
with the non-cumulative 5% de¬
bentures with contingent interest was bolstered by a tax deferral
the

titled to

little

a

class

is

stock

A

en¬

$2 per share non-cumu¬

seen

Eastern

Illinois stands out in even

sharper

relief.

Burlington be denied these roads.

;The

resurgence

Eastern

Illinois

of the Chicago
has been due

largely to the revival of its coal
traffic.
With the southern half
of

traversing the coal
Illinois and In¬

lines

its

fields of southern

also by virtue of

diana, and

its

I connection
at
Evansville, Ind.
with the Louisville & Nashville,

share, and

of over $2 per common

will be almost cut in

which

half

this year.

.

bv the New York Central and the

&

potential

.earnings

share

common.

Since

The

is

the

of

view

the

of

more than 26%
by 1951.. authorities approve the erection of
sharp revival of this traffic a
plant on this site,
neither impairs the position of the
in the rebound of the
pro¬
Fully dieselized since 1950, the voari's common stock nor increases
portion of coal tonnage to 50.3%
Chicago & Eastern Illinois is a its leverage. The creation of the
in 1955.'
fairly efficient operation. In spite debenture issue has been bene¬
This change was brought about
of
the 1955 wage increases,
in the front rank for 1956 per¬
its ficial, on the other hand, in re¬
largely by the location of several Transportation Ratio was held to
formance along with the Pocahon¬
ducing
the road's
income tax,
huge electric
power
plants
at 37.8% for the first ll months of since the
tas roads and a handful of others.
$615,000 interest on the
points served by the Chicago^ ;& last
This carries on a strong upward
year as against 38.3% for the debentures issued to date is a de¬
^Eastern Illinois and one of these, corresponding 1955 period.
revenue trend which began to be
Its ductible item in arriving at tax¬
the 937,500 kw. plant of Electric
really notable in 1952 when the
efficiency has shown steady im¬ able net whereas the equivalent
Energy,
Inc.- at Joppa,' 111.,, is provement as measured by gross
Chicago
& Eastern Illinois as¬
class A dividend would not be.
served exclusively by this road
ton-miles moved per freight trainsumed a sharp lead as to trend
On the other hand, a potential
which delivers to it most of its
of both traffic and revenues over
hour, the gain in this factor hav¬ threat of dilution of the common
3.5 million ton annual require¬
ing been 47% in the 1947-55 pe¬ stock
the corresponding trends of both
equity lies in the $12.2 mil¬
ment. The balance is delivered
by riod. About 121 miles of the road's lion
the Class I total and of the road's
general mortgage income 5s
Central Eastern District.
Since Ohio River barges. The 'Chicago line are covered by CTC with the of 1997, a product of the 1940 re¬
the trends of this
district have & Eastern Illinois had to put up result of an estimated saving of organization. This issue, converti¬
quite a fight for this business, but $270,000 annually, or about 36%
lagged considerably behind those
ble at the rate of 41.08 shares of
it was finally ordered by the ICC
on
the investment.
of the Class I total, the superior
common per $1,000 bond, could re¬
in 1953 that access to Joppa sought
It is officially estimated that the
performance of the Chicago &
sult in the creation of over 500,000

for the first

Revenues

In

dilution, the abnormally low ratio

stock. The exchange

plant

new

Brass

road's

paid in

extra

1955, and which represents barely
than income parity with the

in

2054

regular and

$1.25

million

$12.3
5s

traffic that is anticipated from this

ts.

115

(311)

Chicago & Eastern Illinois earned
"more than" $2.4 million "before

additional shares, or a

funds,"

the river from Joppa is

Across

issue

over

or

$6

per

the 1,350,000 kw. plant of the TVA
which was opened in 1955 and the

share last year as against

5 million

about

common

However,

ment

the

of

ton annual coal

this

Chicago

Illinois

646

and

or

$603,000 Federal
tax and $307,000 interest thereon,
which is estimated to represent
represented

Burlington.

Another plant completed last year

were

bv

passed away Jan.
of 77. Mr. Bell prior
to his retirement had been in the
investment business for over 50

9 at the age

with his own firm, J. Walter
Co. in New York City.

years,

&

Bell

Joseph Kavanagh
away

Kavanagh

passed

Jan. 7 at the age of 77. Prior
retirement he had been

his

to

senior partner

of Morris Joseph &

Co.

dilution of

Thus

CL B. Hazelhurst
G.

Hazelhurst, President of
Flannigan
&
Co.,

B.

Hazelhurst,
Colorado

passed

Springs,

away

Jan. 9.

price of about 23,

At its current

A.

Joseph

if the entire
to be converted, earn¬

120%.

ings of $6 per share such as are
estimated for 1956 would be re¬
duced to less than $3.25 per share
even after allowing for the $615,000 annual interest saving.

$4.40 per share in 1955.
this gain is largely at¬
tributed to a refund of $910,000

require¬

plant is handled by
& Eastern Illinois,

Central

$1,972,-

J. Walter Bell
J. Walter Bell

Joins Copley

Staff

Illinois com¬
(Special to The Financial Chronicle)
a
reasonable
COLORADO SPRINGS, Colo.—
or
$1.80
per
common
the Chicago & Eastern Illinois has Public Service Co. of Indiana at $750,000
multiple of diluted earnings con¬
Terre Haute with an annual .coal
George
P. Apostolas has been
share after taxes on the interest
long been an important carrier of
sidering that there may be no rush
It would to convert unless the dividend on added to the staff of Copley &
requirement of about 1.9 million factor in the refund.
coal to the Chicago area. It is said
Company, Burns Building.
that prior to the turn of the cen¬ tons, and which is served by the aopear that the 1956 estimate in¬ the stock is increased from the
Eastern Illinois and the Milwau¬ cludes the same $100,000 dividend
tury this road carried more coal
from Chicago Heights Terminal &
A smaller plant, also com¬
into Chicago than all other roads kee.
Transfer as was naid in 1955. This
together. It is understood that at pleted last year, is the 175,000 kw.
the

is

521,000

kw.

station, of the

an

increment to earnings

Chicago

of about

mon

is

& Eastern
selling at

.

Eastern
principal road
serving the southern Illinois and
Indiana coal fields.
As time went on, however, Com¬
petition increased from other roads
which began to extend their lines
into the area as well as irom the
that time

Illinois

the Chicago &

was

the

station

of Illinois Power Co. near

lucrative
and

Eastern Illinois.

in 1954 and

In the meantime the progress

of

„

the road-has
Its

territory is understood

to be

made

by oil and na¬

tural gas, were reflected by a

de¬

Heights

ChicagoTransfer

R.R.,

a

» Terminal
'&
wholly-owned

operates

road paid a

$250,000 cash dividend
a 50% stock dividend

besides.

cago

&

ouite

•

mortgage debt of the Chi¬

The

not been One-sided.

undergoing a sharp Jndustial re¬
opening of other' coal field?,-no,-^ vival. A large, stamping plant of
tably those of West •' Kentucky. the Ford Motor Co. has been com¬
These and other factors, including pleted. on land sold to it by the
the inroads

subsidiary which owns
a 24-mile switching

Danville, 111., and which is served
exclusively
bv
the
Chicago
&

Illinois

Eastern

moderate.

The

is

alone

almost 80%

debt that
has occurred since the road's re¬
increase

in

total .term

organisation in 1941 has been due
to a $15 million increase in eouipment obligations

and to the issu-

•'

r

COME CROW WITH US

Natural gas for

IN THE

GREAT SOUTHWEST

the

•

.

where there is plenty of room under

western

The Ideal Fuel

area.

Operating Revenues
Net Income_.

__

Sales

$48,334,000,. $29,255,000
""" 9,474,000
4,960,000

.65%

91%

the sky and

320,190

277,596

<000)____—2,455,000

1,547,000

59%

end)

620,000
728,900

System Peak Demand (Kw)

Generating Capacity (Kw)—

.>43,800

342,300

thirsty crops. They

the

ideal

fuel

as

much
.

.

48 consecutive years
321

of paying common

North Harvey Street,
DONALD S.

1161


i1


.

fuels,

requiring

CONVENIENCE

.

are

.

.

it is

no

finding Natural Gas

Costing only

irrigation.

for

other

as

80%
113%

storage,

it is the ultimate in

delivered through a pipeline when

want it, Natural Gas

is DEPENDABLE.

and where

you

Natural Gas for pump irrigation

helping to insure the crops

typical

of

the

many

Kansas-Nebraska
the

area

COMPANY

to

one-fourth

EXTREMELY ECONOM¬

Pioneering

KANSAS
-

Kansas-Nebraska for water

their

out

OKLAHOMA GAS AND ELECTRIC

to

more

for

ICAL

15%

Customers Served (year
Kwh

'

% increase

1951

1956

increasing: numbers are looking

Plains farmers in

less to

,j

Area

13

clean blue skies, vast reserves

Great

i-

m

Plains

Great

of fuel and other nat¬
ural resources, legions of friendly intelligent workers, and an abundance of dependable low-cost
electricity, pur five year record tells the story of substantial growth in this fabulous south¬
•

good life BETTER

makes the

in

irrigation

unusual

build

a

.

.

of the Great Plains

.

thus

is
services performed by

stronger economy

...

through¬

it serves.

NEBRASKA

NATURAL GAS CO«

stock dividends

Oklahoma City, Oklahoma

KENNEDY, President

Hastings, Nebr.

—

PhilJipsburg, Kan.{

116

Financial Chronicle... Thursday, January 17, 1957

The Commercial and

(312)
i

*Continued

from

!,

•

,

■ -

STEINKRAUS

W.

HERMAN
V

114

page

President, Bridgeport Brass Company ;

Our industry is known as & brass and copper mill
products industry producing sheet, strip, rod, wire, tube
isnd pipe out of the basic metals of copper, zinc, Nickel,
tin and other alloying elements.
The wide variety of
alloys totals close to 200.

By far, the most important metal
is copper, with zinc in a strong num¬
ber

two

The world copper

position.

market therefore, has a strong
Nineteen

Fifty-six has been

hectic, one

far

as

low- of

Prices ranged from

cents within

to

cents

33

most

a

the copper mar¬

as

ket is concerned.
a

influ¬

industry.

our

on

ence

of

high

a

55

due to a short¬
age of the metal. The middle of the
year experienced a buyers' strike in
a

year,

rapidly falling market, with year
prices ranging from 34 cents to
a pound.
This has probably

a

end

36 cents
li. W. Steinkraus

been the widest fluctuation of copper

prices
creases

have experienced, with in¬
six cents a pound

we

deceases ranging as high as

or

overnight.

r

•

I

indicated

i956.

casts,

gins

than

by

interest

On

rates.

the

most

profit mar¬

hand, the
place in residential construction

Fred

government spending and private invest¬
maintain full employment and disposable
incomes will doubtless rise further due to recent
wage
increases.
Consumers, however, this past year have
in

1955. While gross extensions of
at near record levels

more

1

.

ment

rate

has

extensions

also

and

balance.

consumer

continued

rise.

to

have

repayments

In

been

repay¬

months

practically

in

con¬

more

durables is stimulated in coming months
by new
products and new models, gross extensions of consumer
sumer

credit will rise

market, the constant rise of

wages

by the copper

in the

industry and

throughout the country is a cause for concern unless it
be

can

offset

omies.
Shave

by

Most

of

improved efficiency
the

major

companies

signed contracts with

*i-4>eriod of two
It will

creases.

agement and

3ret be

their

three years,

to

take

labor

in

other
the

unions

econ¬

industry

extending for

with annual

carry

with

Our

own

materials

which

could

has

company

developed

budgets

for

sales

and profits with due consideration for these factors.
the major industries whom

in

1957,

motive

have

serve

we

will share in their prosperity.

we

these major factors

industry,

influence

an

Included in

the building industry, the auto¬

are

the

good year

a

public

utilities,

the

oil

industry,

'favorable effect upon

programs

should

program

industry.

our

•

also

have

a

I

sales of

on

and

atomic energy.

These, together with

equipment installed in

various

our

new

cost

reducing

plants, particularly

«Iuring the past three years, will help to make
i'ood year for

1957

a

Chairman

of

the

National

new

all-time high,
probably equal to
the 146 reported for November
<#f comparison

the

or

slightly higher than

(1947-1949=100). By

index will

wav

all-time record of

jFurthermore,

continuation

present

of

rate
assured

of

business

during

the

activity

can

to

at

forces

the

will

current

and

local,

and

level

as

well

the

and

construction

in

Labor
1957

of

greater and

in

projects
the

of the

and

food

vicinity

between private and public
follows:
1957

Private
Public

high

of

being

vegetables

in

62%

beer

20
15%

years

of

levels

for

to

$31.4
i5.o

total

made

In

this

was

William

C.

of

tinless

cans

are

industry.
in

1957/

in finding alter¬

progress

in

an

65

emergency

to

70%

of

to

our

the

Non-residential building, is expected to increase

past

of margin-plating,

sideseam

of
of

inch

an

the

much

year

we

a

finished

that

can.

no more

new

forms

coat

than three-

the

soldered

Margin-plating

5,260,000 pounds of strategic tin

as

and *has

considered

produced

cans
an

with

emergency.

about

in

1957, with principal areas of
strength provided
*>y industrial construction,
private institutional construcCion, and a continued high demand
for office facilities,
-A. slight
decline, on the other hand, is forecast for

shop-

to

In that

pet food

millions

of

margin-plating

at

emergency process, to be used

drastically curtailed by

case

helping produce the

and

it

many

could

cans

completely
present

only if
a

is

our

than 10 billion beer, coffee

that account

for

about

by at

the next five

over

of

example,,
1956

of

case

that

will

Atlantic, the capital
is

trend

upward.

For

quarter

of

.

.

capital,,spending -in-,'

our

(not including our purchase of

Houston

Oil

about $75
in
1955.

The figure
in 1957 may
between $90 and $100 million.

range

Well

Company) t o t a lj e d
million, against $60 million

over

half

of

our

H.

Jr.

Supplee,

expenditures

will

continue to go into the effort to find and
develop
additional crude oil
supplies, both domestic and foreign.
Substantial amounts will be
required to meet steady
growth and constantly improving

In

quality of products and

looking to next

year,

present forecast

our

that

is

domestic

demand for petroleum
products in 1957 will
about 9,265,000 barrels per
day, or an increase
of 4.1% over 1956.
We estimate that domestic demand

average

in

1956

that

was

5.8% higher than in 1955.

forecast

the

is

based

American

do

not

19o5

the

as

amount
are

a

of

two

on

petroleum demand
last. First, the

expectation

our

whole will

growth

main

expect

this year as
will

primarily

economy

proximately the same
1956.
However, there

to

in

show
1957

reasons

which of course

forecast

weather

in

why

increase

as

we
much

as

was

not repeated last
year.

for
heating oil demand assumes
conditions, whereas the weather in

Second,
normal

early

cordimdy61^

1 norma* anc* heating oil sales

product demand
situation will

ity

ap¬

as

increase in gasoline demand
great, because gains in gasoline
lnreflected the
very high auto sales level of

probably not be

discussed above
only. It

affect
it will

a

in the last 10 years.

demand

increase

quite unlikely
capital spending

national

all the metal containers produced
annually in the United
States.

^

a year.

margin-plating could be turned

more

domestic
will

seems

rate

This

perfected

in which tin is used to

wide,

than 60%

services.

strip of steel plate,

narrow

it

more

are

the

think

expenditure

now

eliminate most of the tin from
many other cans. For

during

of

we

In the

accounts

the

by

production in 1956.

over

us

>

Company

decline very much in the foreseeable
future.

Siolk

now

can

will be made

maintain

to

view

years

cans

SUPPLEE, JR.

now running
$6.0 billion annual rate.

a

least another 25%

1956

production

sufficient

expnditures

which

production

can

facilities

our

satisfactory

$44.5

all fronts

the result of vast capital expenditures for
plant
equipment the American oil industry has been able
the domestic demand for
petroleum products

at close to

While Canco has already tested this
process commer¬

13.5

on

meet

These

Food

materials for tin to enable

con¬

$3i.0

we

With expanded efforts

year ago.

which has increased

possible impact of recent world events on
of tin for can making, it should be noted

have

we

cially

time and money
did ten or five

our

than

As
and

in

the

supply

as

larger share of

development

HENDERSON

that

used

approximately 700 million units

nate

and

We expect, in fact, that it
intense, and for this reason we

President, The Atlantic Refining

Developed by
ago, the beer

all

of

tin supplies should be




production

eco¬

year.

can

1955.

over

only

about

that

more

even

hope to strengthen considerably our position in an
industry which shows every indication of enjoying a
healthy and prosperous year in 1957.

brought 1956
up
approxi¬

last

over

rise

1956

the

.

future.

near

even

an

research

attributed

level

are

constituted

5%

save

1956

$46.4
*>%

be

metal container production.
Another
important increase

As

an

we

-

greater volume to pack

10%

sixteenths
Lawrence F. Stern

to

continuing gains

can

production

can

mately
cans

become

or even one

increasing number of
Unusually large packs of

products.

only the

new

forecast

as

slacken in the

constantly

fruits

.

tighten

.

years

activity and to the fact

process

of

$46.4 billion, up 4% from the
$44.5 billion spent in 1956. A break¬

.

The

general

example,

A recent

joint forecast by the Departments

struction is

five

containers

to

slightly in¬

creased private investment.

down

past

not

already restrained
money supply, we expect business and industry to make
increased capital expansion in 1957, and we- expect our
own products to take a bigger share
of this investment

will devote

being manufactured
for such products as motor oil,
anti-freeze, polishes and
waxes, cosmetics and drugs and detergents and insecti¬
cides.
In addition, we have
developed the technology

sustain

high

spending, both Federal

Commerce

the

production

Billions

in the year ahead:
increased govern¬
state

of

new

curbs do

.

STOLK

reached

businesses.

reach of small

If credit

upward trend will continue

through 1957.
in

envisaged.

than in recent years. :
' • - Ours has always been a highly competitive industry,
and we have no reason to believe that the pressure will

in¬

affected at all by a tin shortage.

six

-months.

strong

capital

business in tinless containers. This means that
virtually
all our customers who suffered from
government
re-j
strictions on tin during World War II would not be

the

next

in

40 billion containers.

some

industry

each

the

convert

142 for the full
year
139 for the year 1955.

1956, against

as

can

during

aver¬

age out around

ment

C.

We estimate 8.5 billion beer

Company of Chicago

By 1956 year-end the Federal Reserve's
seasonally
adjusted index of industrial production will reach a

Two

slow-down

some

Industry production of metal calls in 1957 will
ap¬
proach 42 billion units, substantially
topping last year's

for

Bank and Trust

/

will

Canco

STERN

Board, American

the

Canal

be expected.

may

WILLIAM

in

business

serious

President, American Can Company

the

us.

LAWRENCE F.

tffeems

point where

a

vestment

and

heretofore not

punching tape and cards, for these machines offer a
high degree of automation at relatively low cost, within

most

In view of the. fact that
industry has been adding to
productive capacity at such a rapid rate in recent
years,
xhe question should be raised as to
whether we have not

The

office

the

to

deflationary threat

the

as a result of the blocking of the Suez
the consequent loss of vital
supplies of oil.

reached

on new

economy would seem to be posed by
distortions which might arise in Western

moment

economic

and

even

The savings in human time

adding,

by

automation

of

domestic

our

by
ex¬

calculating and accounting
significance with integrated
processing equipment, which will bring a degree
possible

data

consumer

Europe

a

developed through research and engineering,

products which are being used increas¬
ingly in the field of rockets, guided missiles, aircraft and

.

the

metal

defense

information

An important

predict that the greatest growth in 1957 will be in
electro-mechanical adding and accounting machines for

nomic

increased

We have

to

If

and others.
An

At

these additional costs and

other

well

We

man¬

fje substituted.

businesses.

our

machines have taken

in¬

wage

superior teamwork between

to

competitive

and

guide

in the days ahead.

so

made

again. Consequently, net credit extended

durables.

the

In addition to the variation experienced

speak

While this has always been true, we expect it to be

Therefore, if demand for automobiles and other

cli¬

planation for this growing need lies in the employment
pinch wihch covers most parts of the country, and which
is expected to extend into 1957. With the nation operat¬
ing at nearly-full employment, it becomes increasingly
vital that business find the best in labor-saving devices.

credit have

recent

all

we

which

trends

automatically -the

and

accurately

ly,

-

-

.

Sullivan

R.

which

than they did

throughout 1956, the

economic
a

/for- the manufacturers of figuring
equipment.V Paramount among these
is the growing interest in machines
for the office.
Every day the need
increases for obtaining more quick¬

should

disposition toward saving

con¬

whole is our
barometer in pre¬

important

favorable

Increased

a

healthful

a

activity

eral,- there are certain other highly

other

June, 1955, has dearly reflected tight money and
will undoubtedly continue to do so.-

shown

to

dicting a prosperous sales year for
office equipment.
/
/,
Beyond
what we might expect
from a flourishing economy in gen¬

since

ment

A

1957.

in

mate for the nation as

The implications of both these forecasts are clear that
tight money has not as yet substantially retarded indus¬
try's capital investment programs. Thus far it would
appear thai these programs are influenced more by the

decline which has taken

all of which point

tinued high level of business

^entered

•continue to grow.

as

apparently neither the Suez Crisis
nor
the election significantly changed industry's plans
for expenditures on plant and equipment.

will continue to have

Many of the important members of this industry have
the aluminum mill products field in the last
few years. This is a development which will doubtless

are

big

that

outlobk for over-all volume of business and

_

happy to say that we expect .1957 to be just
1956 for the office equipment industry. For our
own
company, 1956 was the best sales year in Monroe
history.
But I think 1957 can ,be even better.
The
primary reason for our optimism is
based on a variety of economic fore¬
We

as

Another well regarded survey of capital spending for
1957, completed by McGraw-Hill in December, substan¬
tiated the Department of Commerce and Labor forecast
and

SULLIVAN

R.

President, Monroe Calculating: Machine Co., Inc.

anticipated in publicly financed construction.

been

"Naturally all members of the industry had to go from
.peak performance in the first quarter to a lower level
in June and July, more than one-third off the peak.
Ouring the latter part of the third quarter the situation
foegan to improve, and this improvement has extended
through the fourth quarter. With a more stable copper
.market, the year 1957 should be decidedly better than

FRED

plhg center and store building and a further decline is
anticipated for new residential construction. Spending
by public utilities is expected to rise 13% from $5.1
billion in 1956 to $5.8 billion in 1957; and this rise alone
will be almost enough to off-set an estimated $800 mil¬
lion drop in private home building. A 12% increase is

to

seems

pertains

impede the

domestic

to

unlikely that

this demand to

U. S.

any

the

Suez

significant de-

oil indust^s

supply the forecast domestic
requirements.

Continued

1956

rose ac-

on

page

aMThe

118

Number 5604

185

Volume

of the Canal will, of course, have a pronounced
yet largely indeterminable effect on domestic
crude production and on exports and imports., For ex¬
ample, before the Middle East difficulties arose, our best
estimate was that domestic crude production in 1957
would average about 7,290,000 barrels per day. It ap¬

NORMAN R.

closing
but

however, that when .the full impact of the

pears now,

closing is felt, production may have to be increased

Suez

by at

least 700,000 barrels per day over this figure.
JAMES

M.

Pennsylvania

President,

President and

a

about

2.8%

achieved despite the adverse effect on earn¬
ings of the steel strike last summer, increases in the
prices of materials used and wage
increases effective
Nov. 1. Emer¬
gency freight rate increases just au¬
thorized by the Interstate Commerce
Commission arrived too late to off¬
set the added costs during the year.

natural

outlook for the nation

the

generally prosperous, the
Pennsylvania's outlook is largely
1957 is

in

abou-t

be

large
The

tion

in

this

Electric

increase

of

47

additional

to

provide for estimated growth in demand

until 196J.

325,000-kilowatt

generating

the

from
at

continued

other

home

new

states.

construc¬

65,500

taxable

of

M.

Symes

to

at

a

high level.

Om

Given

10%

i.e.,

tax;

on

and

promotional
will

PG&E ter¬

of more
be con¬

Continued,

on

page

passenger

two

are

Rubber Company

first

number

the

is

1957

Coiturj of'Bankbig

industry in 1957.
In 1940,

produced.

of tires

period immediately previous to World War II, our
industry had reached a production
of

;

60,000,000

tires.

In

1956

.

■r

Cash and Due from

expected

use

of

Thomas

tires

for

Stock in Federal Reserve

Customers' Liability on

The

°f 1957 is

a

new

little

national

more

The year for the

highway

clear than

program,

rubber industry

should be one of a

capacity to take care of
and a tough fight
profit margins.

it, continued strong competitive selling,
and

improve




as

the last half.

little higher volume, plenty of

maintain

Income Accrued but

'

175,241,080.83

Bank.

6,450,000.00

......

Acceptances.

1,776,932.26

.

9,346,756.66

Not Collected....

7,500,000.00

Banking House

$2,769,263,133.53
LIABILITIES

$2,496,971,564.75
1,776,932.26

Deposits
Acceptances
Reserves for Taxes,

Interest, and Expenses.

13,935,347.27
18,106,691.88
2,354,847.20

.

Contingencies

Reserve for

Income Collected

but Not Earned

..........

90,000,000.00
125,000,000.00

Capital StOCk(2,70(),U00 3liaritHHineo Fob. 14, 1056. Pur value $33,'£)
Surplus
Undivided Profits

...

21,117,750.17

.

$2,769,263,133.53

United States Government
are

obligations carried at $209,132,676.62

pledged to secure public and trust
purposes as

required

or

deposits and for other

permitted by law

K

Board of Directors

both synthetic and natural,
with some of the old-time

it de¬
velops, will give great impetus to increased vehicle reg¬
istration and, consequently, rubber consumption.
In all of our
estimates, the strength of the first half

alone.

^

y

1,166,841,545.41

Loans and Discounts

the growth in very
off-the-road hauling

and at
more
stable prices,
rubber
inventory hazards being minimized. New synthetic rub¬
bers, now in pilot plant stage, promise to be able to
completely equal or better natural rubber for all usages.
The rubber industry, with its increased diversification,
now
including in addition to tires and rubber products,
the
many other items such as chemicals, aircraft, elec¬
tronics, metals and plastics, tends to be more stable than
heretofore when more dependence was placed on tires
rubber available,

1'

731,057,257.54

..........

tubeless con¬

large
such
as earthmoving; the increased use of
synthetic rubbers; the shift almost completely from cot¬
ton
to rayon, and
now the rapidly increased use of
nylon; and the development of safer and better tires.
The second guidepost is the amount of rubber con¬
sumed annually.
This reflects not only tire production
but the very fast-growing products such as industrial
rubber goods, molded goods, foam and flooring. In the
modern automobile, there is now almost as much rubber
in other-than-tire products as there is in the tires. Rub¬
ber consumption in 1940 was 652,000 tons-—100% natural
rubber.
In
1956 the industry will use
1,435,000 tons,
about 60% of this being synthetic rubber and only 40%
natural. For 1957 we expect to consume 1,510,000 tons,
with at least 62% of it synthetic and 38% natural.
Synthetic plant capacities in this country are being
considerably increased to where there will soon exist an
annual capacity of all kinds of synthetic rubbers
amounting to 1,700,000 tons, thus assuring the material
for the growth of the industry.
There will be plenty
struction;

J.

•

671,049,560.83
Obligations

Securities

Other Bonds and

trucks.

increased

V-

.

Banks.

United States Government

Notable has been
the
continued switch to lower di¬
ameter and larger cross-section tires;
the

\

RESOURCES

larger

1,200,000

31, 1956

December

we

increase comes from
renewal tire market, but
.mainly from more tires for original
equipment on new vehicles. These
plans are based on a production in
1957 of 6,500,000 passenger cars and
a

Condition

Statement of

.trssv

produced 104,000,000 tires. The esti¬
mate of the industry for 1957 is for
the manufacture of 111,000,000 tires.
This

COMPANY

OF CHICAGO

mention which will

can

picture for the rubber

give the

The

guideposts I

1857

and TRUST

BANK

NATIONAL

THOMAS

J.

ILLINOIS

CONTINENTAL

economy.

President, The Goodyear Tire &
There

to

General Electric Com¬
install a 5,000-kilowatt generator at
Vallecitos Atomic Laboratory. This
plant is a pilot operation for a 180,000-kilowatt nuclear
plant General Electric will build near Chicago for Com¬
monwealth Edison Company and Nuclear Power Group,
Inc., with which PG&E is associated.
Provision also has been made for additional supplies
of natural gas.
We are now taking deliveries of 756
million cubic feet daily, about two-thirds of the area's

pany, PG&E will
General Electric's

basis, the railroads are the na¬
economical form of mass transportation.
yeasonable treatment by Government in 1957, the

E.

of

nation's first entirely privately financed
in commercial service. Through a co¬

the

power

truly full-cost

a

nation's growing

E.

1,310,000 kilowatts.

the company's lines will be

operative arrangement with the

during 1956 reached an all-time high
than $400 million.
Many of these plants will

—

the

carrying
electric

The dollar value of com¬

Pennsylvania should have a somewhat better year than
1956
and move forward to a better participation in

best

service on the

in

now

most

tion's

the

Power

that would eliminate the

action

transportation
and 3% on freight rates.

biggest

the

as

By late summer this year

plants and expansions in

ritory

new

large

as

1961.

in

one

Plant, one
Each of these units will be
Pittsburg

our

plant west of the Mississippi River, to

agriculture, additional acreage of many crops

continue

and

two

to

system. Together they will increase the capacity
this plant, already the largest steam-operated electric

of

by

planted, although development of new land in 1957
proceed at a slower pace than in the recent past.
Industrial expansion, which has proceeded at a phe¬
nomenal rate in postwar California, also is expected

James

includes
added

be

in progress or scheduled,

now

PG&E

be

pending before the Commission a request for additional
increases in freight charges.
We are also seeking from

legislative

twice

units,

items

to

1960

in

capacity is

figure

units

provide

mitments for

war-time

This

will

petitions are now before the Com¬
mission
seeking increased charges
these
services.
There is also

in

of

program.
In

year

of

strong support
gas and electric appliance sales
dealers through its advertising

by

new

gain

a

breaking total of $8.6 billion, an in¬
crease
of
about
4.7%
over
1956.
for

available on demand, we

considerably further ahead than the

appraising growth. PG&E began three years ago to con¬
struct the new generating and other associated facilities
necessary to serve the electric power demands which
will arise in 1957.
Construction of 1,495,000 kilowatts

all businesses should reach a record-

will

successful in

notably

industry.

Since utility service must be
look

only slightly less than in 1956.
sales

been

have

campaigns
new

growth will
divided between

estimated

Retail

such

by

and

migration
is

vious

attracting

bring business opportunities in its
industry elsewhere. Two pre¬

to

attention *of

the

to

area

This

equally

volume

of

area

to

persons,

1956.

for

Congress,

*

is

campaign

tising

Company

1957 and 1958.' Pacific Gas and Elec¬
now
engaged in a national adver¬

during

Company

increase

expected

over

PG&E

dependent on the extent to which
Government allows the railroad in¬
dustry to operate at a suitable profit
in
the
present, inflationary
era.
Passenger, mail and
express serv¬
ices
are
operating at a loss, and

is

182,000

1956 will prob¬
ably be slightly above the $41 million earned in 1955.
This was

and

Manager

high level.

very

Population

Railroad

Gas

General

In its territory of service in Northern and Central
California, which includes about two-thirds of the area
and half the population of the state, Pacific Gas and
Electric Company expects general business activity in
1957 to exceed that of 1956, which

counties

Pennsylvania Railroad earnings for

While

Pacific

•

held at

SYMES

structed

SUTHERLAND

tric

as

117

(313)

The Commercial and Financial Chronicle

. . .

WALTER

J.

CUMMINGS, Chairman.

J.

CALVIN

ADAMS

Q.

DAVID

FENTRESS, JR.

BORLAND

B.

FISHER

P.

Partner

General Motors Corporation

I!

CHARLES

President
Pullman Incorporated

'

ALFRED

A.

CUDAHY

Chairman of the

The Cudahy

JOHN

Board

Packing Company
F.

LA SALLE,

President
International Harvester

Company
H.

HOLMES

V.

FRANK

Inc.

JACKSON, CLARK AND

HOUSER

HERMAN

retired

TAYLOR

WALDECK

Banker

Co.

QUINCY STREETS

Member Federal Deposit

F.

Banker

Chairman of the Board

Sears, Roebuck and

SCANDRETT

A.

Railroqd Executive,

Board

Swift & Company

THEODORE

CUNEO

President
The Cuneo Press,

JOHN

Chairman of the

MOULDER

V.

PETER

HEWITT

President, Deere & Company

Retired

EDWARD

A.

MORSE, JR.

Fairbanks, Morse & Co.

Company

CRAWFORD

A.

H.

President

£

Commonwealth Edison

COWLES

WILLIAM
D.

Mitchell, Hutchins & Co.
ROBERT

Y^FREEMAN

Director

Cowles Properties

H. MITCHELL

WILLIAM

Director

CARRY

CHAMP

LEAVELL

Banker

LAWRENCE

Managing Owner
Borland Properties

R.

JAMES

Allstate Insurance Company

CHAUNCEY

KENNEDY

M.

President

Presiaenf

Real Estate

•

CHICAGO 90, ILLINOIS

Insurance Corporation

•

vfc

118

Continued jrom page

remainder is

supplied

New Mexico.

and

California fields.

from

We

plan an increase to more than one billion cubic feet a
day by the winter of 1959.

1956 our expansion costs were approximately
Expenditures will be greater in 1957 and
will approximate $190 million. The necessary financing
is under consideration.
During

$145 million.

GLENN

W.

of

a

are

importantly ahead

the

of

toward

Chairman

Arvin

of

the

Board,

projects are willing to pay the increased interest rates.
In
many
cases
those who do not have worthwhile

„

emphasis on leisure as a significant part
American way of life and the continuing trend
outdoor living are expected
to increase the

projects cTre willing to postpone them. This is certainly
desirable in the broad picture., From the standpoint of

demapd for the products of our outdoor furniture and
housewares products.
Employment of more and more
women in the factories and offices of the nation creates

expanding at the same time.

Industries, Inc.

Competition will continue keen, the squeeze between
costs and prices will be accelerated and management
will be challenged to use all the ingenuity it can muster
to retain adequate profit margins in 1957.

throughout the year.

The rewards in the new year will

who

those

to

go

approach

It

their

available

are

employ
the

Newer

them.
fields

ing, market
relations

to

all

who

adopt them.

necessity even for the small
middle-sized corporations.
Overlooked

areas

in

the

use

rate

and

what

the

in

which

strike

of housing

lasted

about

a

W. Thompson

reached
tries

starts,

as

well

as

a

public

wants and

net result that

uct for the

in 1956 than in

was

levels

Neglected much too frequently is the knowl¬
edge that employees on the average produce only a
fraction of their potentials and that motivation is the
the

to

answer

become

more

await

the

phase

of

the

in

managements

this

shortage which

manpower
severe

problem

years

which

in

ahead.

attack

threatens

Great

even

a

to

gains
single

1957.

Improved communica¬
tions, for example, stimulate morale by giving employ¬
ees the sense of "belonging," the
certainty that they are
members of the team and as such have obligations to
see

that the "team" wins its

share of victories.

.

commodities

of

Trie Federal
the

slightly higher

Reserve has

going into 1957

are

on

high

a

.

There

will

probably

further reaction

in

be

the

a

believe that over-all there will

the

Federal

increase in

men

ital

Consumer

Price

are

planning further huge

R.

a

index.

see

sooner

margins should be retained or improved.
In making
capital expenditures stress will be laid on those things
which will further lighten work loads of employees and

were

more

Arvin

is

a

efficiently available
part

of-ihree

industries—automotive

parts
and

a

policy of restraint in the
several

and equipment, metal furniture and housewares
electronics and appliances.
The enthusiastic public

increases

rediscount rate.
Reserve

manpower.

great

low

to

authorities

The

authorities

prevent

during

restraints
have

been

continued

money

the

year

effected

to

markets.

in

the

in

fol¬

ary

There
banks'

in

cycle to

It may

tactics
or

succeed or it may have to adopt

accomplish

to

its

later it will bring the

purpose;

ments of

helping

a

but

end."

an

ago.

year

The boom

now

is at

my com¬

even

an

more

dangerous level, the threat

inflationary spiral and a future deflation¬
ary setback. With the capital expenditure plans of many
corporations, municipalities and others, I believe there
an

ever,

of inflation is greater than
the Victory 2V2S have not only broken 90 but 88

Continued
■

CONDF.NSED

LORAIN,

At the Close of

on

./

•

page

Company

OHIO

Business

December 31,

1956

RESOURCES—

U.

TISHMAN REALTY & CONSTRUCTION CO., INC.

in

Vaults

and

S. Government

State,

Municipal

Loins

and

with

Banks

$

Obligations, Direct and fully guaranteed_
and

Other

Bonds

and

Discounts.,-...

Banking House, Furniture and Fixtures
Other

2,716,292.93

6,424,909.88

Investments

.___

715,495.21

8,425,547.20

_______

279,993.87

_

Assets

;

28.0S8.58

»

460

PARK

AVENUE, NEW YORK

•

.

$18>590,307.G7

LIABILITIES—

Deposits:
Demand

$

__.

Time
Reserves

9,405,131.56

Discount,

Federal

Income

Taxes,

etc.

Capital

OWNERS




AND

BUILDERS

SINCE

156,191.28

$500,000.00

Surplus

530,000.00

1898
Undivided

7,873,867.44

for:

Unearned

Profits

125,117.39

_

1,155,117.39

$18,590,307.67
H.

MEMBER

FEDERAL
MEMBER

WE

PROGRESS

G.

TO

PYLE, PRESIDENT

DEPOSIT
FEDERAL

SERVE

INSURANCE
RESERVE

CORPORATION

SYSTEM

WE

SERVE

TO

120
"

,•

STATEMENT

The Central Bank

Cash

I

current inflation¬

Up to this point I have quoted verbatim from

by the Federal

worthwhile

A

Obviously, the Federal Reserve Board
these expenditures postponed to a time
when they might be needed to support declining produc¬
tion.
Consequently, there seems no reason to believe
that it will reverse its restrictive policy until the dangers
of an inflationary boom have passed.
Federal stopped
the boom in 1953 by adopting drastic methods; it is try¬
ing to stop it this time without sending long Treasury

Thompson

were

Raymond H. Trott

-

cap-

materials.

would like to
J.

they

The Federal Reserve

at¬

can

expenditures which will call lor more of the scarce

raw

Reserve

the

present

Confidence is still high and business-

of

be

The

.

tain its. goal with such gentle tactics.

slight

number

restrictions.

.

question is whether Federal

housing starts, but
slight increase in
index of industrial production and
in the Gross National Product, as well as a further
slight
I

its

tering

think

utilize

-

year

1955.

higher than in 1956.

/

has "been acting to curb the,boom. However, it has been so fearful of damaging confidence
that
it has been very gentle in adminis¬
a

1955.

Profit

to be from 7% to 10%

year

;

-

recognized

dangers in this situation and for

rugged

company, we expect volume in the new

;

tnan

,

.; *. with the 'accord' between the
Federal Reserve and the Treasury.-

more

own

other

and foods is the most 1"
inflationary
development

bonds below 90.

our

.

July in the Labor Bureau's

On the basis of the law of supply and
demand, interest
rates were somewhat higher in 1956 than

As to

has

.

slightly better business year than
1956. Capital expenditures will prob¬
ably be greater than those in 1956.
Automobile production should be at
least 10% greater than in 1956, and
steel production will probably set a
new
production
record
in
1957.

training.

boom

By and large indus¬

since thf1 Korean War inflation end^d
'A

plane of business activity, and it is
likely that the year 1957 will be a

scarcity of competent management people at all
suggests the great desirability of week-to-week

business

>

•

.

_

We

then

before.

.

are'operating at. capacity, shortages of manpower
raw materials are appearing
-.
The advance

ominous

Gross National Prod¬

year

the

•

farm products

-

were offset by im¬
in other directions, in¬
cluding business expenditures for
new
plant and equipment, with the

that

basic

index

reduc¬

These

denying

no

dangerously high level.

a

since last

activity

sive than
The

^--.1 :

year.1 ■,> '

RAYMOND H. TROTT:f;;:;

is

"There

month.

proceeds to supply those wants.
Facts will p3y off in
1957 while guesses and hunches will prove more expen¬
ever

^ine business

1957 business

however, that 1957 should be

appear,

President, Rhode Island Hospital Trust Company,

;

provements

Glenn

from someone and
which gets the order more times than not
will be the one which knows in advance through inten¬
research

the number

in

and

tions

factories

industrial engineering prac¬
Customers will continue to buy

market

v

1956
major declines in the automobile production

steel

the company

sive

'

Jfh would

0.'

■■

good business year was experienced in

with

even

of

tices.

another

the growing'

and

will

splendid opportuni¬
cutting through greater

cost

I picture.

Commerce, Cleveland, Ohio

and offices offer

ties for

it

op¬

Research will .be almost

a

.-

fhe present situations would have on the

.

Chairman of the Board, Union Bank of

Another

1957

of course, in a> disturbed world situation and
is difficult to predict what effect a continuance of

THOMPSON

K.

J.

in

We are,

Providence, Rhode Island

engineer¬

firms which

as

higher

be

will

probably

than has been true in the last few years.

the present and expected future level
of the national economy, that we predict for our com¬
pany an increase in sales of from 7 to 10% in 1957.

research and employee
the

well

as

his

other year, and it would be very helpful if
larger proportion of incomes was placed in savings

a

\

factors,,

incomes

will

offer almost unlimited

portunities to

are

and

developments

industrial

of

of these

all

on

population

problems with a high degree of in¬
telligence, using those new tech¬
niques of scientific management
which

is

V

Personal

•

do

cannot

,

than in any

the answer
to those who would reduce the time and energy required
for household work.
In addition, new products, devel¬
oped in our Research and Advanced Engineering De¬
partment and tested as to public reaction by our Market
and Product Research Department, are to be introduced
undoubtedly

appliances

electrical

everybody

materials,

and

men

money,

greater demand for those things which ease the bur¬
of the housewife in her home.
Electronic devices

and

those who have really worthwhile

demand for loans and

.

dens

President and

of

1957

in

The growing

a

THOMPSON

ago.

year

therefore, that we will have a continuance
a
tight money market. There is a general
realization on the part of borrowers that there is a great
believe,

I

Commitments made to us by the

totals.

1956

the

over

major motor car manufacturers

borrowing demand and

continue to be a substantial

will

acceptance of the 1957 model passenger cars almost in¬
sures a substantially increased production of automobiles

117

from fields in Texas

requirements,
The

in

Chronicle..-Thursday, January 17/1957

and Financial

The Commercial

<314)

118,

PROGRESS

Number 5604

185

Volume

The Commercial

..

and Financial.Chronicle

'

Continued from page 3

'We

only

of our economic re¬
sources, and in holding our eco¬
nomic life in equilibrium.
The explanation of the rate of
interest in the history of economic
thought has developed interesting
rival or complementary theories
which we may not do more than
mention here.
For John Bates
Clark the rate of interest is gov¬
utilization

discussed

the

open-market

Fede ral

capital" The greater the .volume
of capital in relation to the supply
of labor, the lower the margin

policy

Reserve

and

Of

banks.

doubt

no

that

the

scarcity of bank
tion

to

the

short-term

the

bank credit could be

in

There have been two main

theoretical

greater future product of hats and
than could be had

the present income for

by using

consumption today, men will not
wait.
The future is far off and
small

looks

relation

in

the

to

control

had

rate

the

for

speculative

move¬

occasionally

would

it

and

London

The Bank of Eng¬

the

exposition

which follows, this essential rate
of interest will be had in mind."

the

useful

very

a

of

body

The

discussion.

market writers in London

and New

had

have

we

of

able

very

market

money

York, trying to forecast

of

yield

interest,

development

and

money

rat;s

of

rate

the

interest,

pf

long-term
little

very

the

including

to

have

bonds,

the

about

say

productivity of capital
or the
time preference of savers.
They have talked about the gold
marginal

of

reserves

the

the

inflow

the

prospects

discount

Bank

and

of

The
never

Fixes

Interest

omists

writer,

present

who

of fences and barns, of stock of
S°ods on the merchant's shelves,
Capital grows as men consume
less than they currently produce.

has

accepted the quantity theory

of money, became convinced many
years

that this dogma

ago

nn^lnd S t^,
unsound. In my Value

of the

WaS
Money,

of

increase

an

in

the

then, if these continued low for

a

considerable period of time, finally

late above and below the long-time

rate

of

finding

interest,

clear

a

in

The

New

studied

autumn

the weekly

crop

for

the

of

prospects

demands

for

momy

moving, the inflow and out-

floy of gold, and, after the coming
of

the

Federal

*The
the

time

productivity

circular
value

which

computed

as

since

the

product

believe

that

this

itself

is

ductivity
not

of

criticism

theorists is
discuss it here.

correct,

tile

but

South

gradual

was

unnoticed
change
prevailing theories of in¬

the

The

second

why

reason

cmists'disregarded the
tor

of

the

For

yield

in

theory

the

quantity

not

the

is
in

passage,

mortgages

rate

other

and

safe

on

more

fixed

safe

investments. I recognized, too, that

Rates."

Xlbid.,

pages

484,

n.;

484-89;

is taken

of

of

com¬

ch.

8Published in

The Chase, the house

Bank

the notion of one pure
terest
it

as

was

myth
mytn,

a

useful

a

rate of in-

but
out

regarded
regaiaea

theoretical

concept

'

.

which

concentrated

'

attention

it's been

and

A

to surplus

Resources

'Sf*!!oo"«»n
195,090.3b

J'??-™
7,403.69

—

_

i

Resources

are

------

$26,308,260.32

JS.OJO.OO

1, 1957—

Discount

this,

taxes

400,009.00
476,644.90

Profits.

Liabilities
Member




526,308,260.32

——

Federal Deposit

Insurance

Corporation

our
economic
policy which re¬

such

high

so

the

as

undis¬

prevent

to

as

of

and

pluses

adequate

the
sur¬

does

reserves,

the

country incredible harm.
thiru

The

of

capital is
particularly
important in agriculture, though
important also in small shops and
direct

source

capitalization,

when

It

or

his

comes

the

farmer

the

home

spare

uses

owner

homes.

in

and

factories

in

time

painting his buildings, in building
fences and barns, in putting
in
sub-soil drainage. It is the product
of labor
rather than of saving.
It involves
It

tion.

no

comes

intermedia¬

money

when

the

farmer

lets his flocks and herds increase
instead
of the

of

selling

off

the

annual increase.

whole

One

able

the
to me in 1937 that the
created
by
the Italian
peasant, as he cleared his land

Italian

authority

expressed

opinion

capital

rocks

of

and

fertilized

his

it,
increased
his -goats,r etc;,

terraced

and

number

of

land

the
was

practically offsetting the damage
Mussolini was doing that year to
capital of the country by his

fiscal

on

November
May,

1926

deficit.

Economic

Bulletin,

of effort

since its organization, has been

the principle of good service.

natural

gas

principle is sound because our operat¬

Dividends to stockholders

Co., Inc. is serving

customers

approximately

in 60 cities and towns in

Indiana, each with an economy

based

on an

agricultural-

industry diversity.

so

be happy to

that you can see our

send

fourth

A

source

you a copy

of

our

annual report

"healthy growth" record for yourself

666

INDIANA GAS & WATER

purposes

and "Eatinjr the Seed

The
Chase
1936.
4

Corn,"

2'Sna'nX

Surplus

of

Public

accumulation

in

-

Reserve for Contingencies, Taxes, etc.__
Capital Stock

has been a majoi source
in our history and a

capital

stricts

100%, while our customers have increased 64%.

We shall,

$24,267,096.73

Dividend Payable January

up

99,000

LIABILITIES

Deposits

The

States.

tributed profits tax, or corporation

a

Indiana Gas & Water

9»234,092.30

1

United

source

ingredients. The growth at Indiana Gas & Water

We know that this

Building and Equipment
Interest Receivable

and

Wages

of

capital

is

fi\so„"BS.I}k M°?ey an^ the Capital,fs"p- governmental thrift, taxation for
ply ,
r/lc
?uh£(,„,

ing revenues have increased 336%.

Bank

Profit,

major
growth.

of the Chase National Bonk of the
City of New York, November, 1920. See

healthy growth in any category requires a lot

with sound

$ 6,341,418.94

Securities

and,

turning back of corporate earnings

HEALTHY GROWTH

built upon

9,716,246.14

savings

organ

Co., Inc., in these 11 years

1956

his

in

it for the

ure

do

TRUST COMPANY

business

we

recognize

pioneer in emphasizing its impor¬
tance and in undertaking to meas¬

the

Xxiv.

is

which

to

Prices, published in 1920, was the

1920 edition, Vol.

Economics,

1920,

Friday

typical of this old view,
from Taussig's Principles

Bend's Most Convenient

Loans and Discounts

Total

the

in

rate

time

in

following

The

prices.

modity

level

the

but

of

rate of

$16,057,665.08

Undivided

any
ma-

things which will
their services in the

shelves,

high,

are

is induced.

above all, corporate savings. David

fac¬

prevalence

governs,

this

interest,

United States Govt. Securities-..

Unearned

in

more

he invests

forms indicated,

To

*.

RESOURCES

Total

produced.

chinery, more railroad terminals,
readily
houses, more goods on

gilt-edged,

on

the

of

that

exten^

to

downward.

tend

interest

just beginning

were

quantity theory of money.

money

Cash and Due from Bagks

Other

refrains from immediate
consumption, less hats and shoes
and
saver
tjle

of

rate

large,

are

the importance of

tal,

econ-^

money

the widespread

was

Statement of December 31,

Bonds

which tne older economists
chiefly stressed. It is very un¬
P°rtant. To the extent that the
are

interest

rates

the

decisions

savings

saving

more

II, page 5:

AMERICAN

Other

.a^ independent business
enterprise. It was this source of

in^

cream

of

When

his

back-

a

between

and

When

rates

terest.

pro¬

I

yield

in

by economists, it made no
in

la,£ determined by the rate of interest.

I

the

general public.

and, though it was not

capital

very

??rJ. exPansion of the
individual s business, or the start-

?af.e'.?r

a

from

movement

regard

involved

as

the

marginal

percentage

a

system,

theorists

theorists

reasoning,

on

Reserve

preference

was

dropped

House, the relation of reserves to
deposits, the relation of loans to
the

.

.

figures of the New York Clearing

deposits,

bonds

marketable

less

first is consumer s
*™ft. A man has an income of
ar!d *11S family spend
f. '
a .y€;ar ln cur.re.rd c^!?®arnP~
t10n» and the remaining $1,000 is
available for the purchase of a
railroad bond, or for a loan on
mortgage, or for the building of a
fonr[e' or for deposit in a savings
kank which in turn will buy a
railroad bond or lend on mort-

r

market writers

money

York

and

.......

4.38% in 1897 to
3.77% in 1902. But the downward

of

loans

,

operations in "selling to the mar¬
ket."

econ¬

the

in

Bank

the

T!;e!'e l1'® fly.e mam sources of

first published in

play

interest

save.

of

M*h< Sources of Capital
""")Z

m.

of

producing,
is

There

The second great source of capi¬

,

marketable
bonds,
because
the
gjve forth
period from 1897 liquidity factor pulled doWn the1 ——
•
__t
tSee Value of Money, New York, Macto 1903 when the great influx of
rate Oil these bonds, and I was
m|llan> 1917.
New edition. New York,
gold which came to the United
disposed to find the pure long- Richard R. Smith, 1936. Page references
""i"in
index
under "Interest,
States
and
Money
clearly pulled down the
There

the Bank of England's

or

the

or

academic

of

attention

,

materials, of flocks and herds,
of orchards, of sub-soil drainage,

Rate?

£5,000,000 were large operations of equal safety. I concluded that
in prewar London.
The volume it was a mistake to look for the
of excess money rarely grew so
large in prewar days as to attract pure long-time rate of interest in
the

.

.

ice

long-time rates of interest. The
average yield of 10 railroad bonds

changes

of

of

Operations

na-

raw

What

=Bank mand lower rates than less liquid

"make

to

effective."

England,
gold,

outflow., of

rate

England,

of

sufficient

was

Rate

the

to

tones and machinery, of stocks of

sell
Consols
or
Indian
Council tendency for short-term rates to
is an immense literature bills for the
purpose of taking up be lower than long-term rates and
theory of interest running toe floating supply of money. for the call
rate, despite its occain terms like these, with almost
These operations were microscopic sional flights to high levels, to be
nothing said about the quantity indeed in comparison with open- lower than all time rates. J placed
of money as a factor in determin¬
market operations in the period heavy emphasis upon the liquidity
ing the rate of interest.
following 1921. I have found one factor emphasizing that the more
Side by side, however, with the case where the sale of 1,100,000 liquid loans, and the more readily
development of the pure theory pounds of Indian Council
bills marketable bonds, would comof

respect

Capital consists of the produced
™eans of production. It consists
® railroads and bridges, of fac-

.,

~

the

had

an

with

deci¬

His

toward

or

future.

and-forth
•

steady in-

in-

There

on

present
the

the part

on

savers.$

doctrine

occasionally raise its long-term rates. I rejected the nopurpose of stopping tion that bank rates merely oscil-

unsound

an

In

the

for

ture and sources of capitals §
■
*

rate

on

,

new

preliminary

waiting

or

that

produced.

are

sions, to the extent of his economic
power, turn the activities of the
community toward producing for

address before
the Indiana Bankers Association.
the wrjter offered th followi ;

1917,1 held that.
quantity of
money would lower interest rates,
to first short-term money rates and

designed

interest.

of

of it.

would

land

ment,

present.*

rates

some

true

future

real source

a

without

In 192°. in

rea¬

omists in the past have neglected

deliberately

of

view,

what may
of

,

terest—the return

econ¬

interest

shoes and food

t

*

nts

capital

abstinence

hf" sufficiently
this bank rate oscil-

?ie.K
be called the

of

Proper Money Supply

the

The

not

rates

traditional

of

«

ovnS5
explained,

vestments.

why

interest.

or

rela¬

and the lower the rate of the
money factor and have con¬
will
be.
For Bochmcentrated their study on the psy¬
Bawerk the factor of time prefer¬
chological attitudes of the saver
ence
is cf primary importance.
and on the use of capital in indus¬
Interest must be paid* to induce
trial processes.
The first is that
men
to forego present consump¬
aown to 1914 we had had a mini¬
tion.
Unless
the utilization of
mum of money market manipula¬
existing income in producing
tion by central banks and governbridges and machinery creates a
rm

will go

lower

not

higher

»nHetnJhl?r,?f o£ m0"ey
b/nk diST?i

bonds.

sons

makes

money

connection which does exist be-

interest but also the yield on longterm

highly. important set of causes
affecting actual interest rates.f
I recognized, too, contrary, to
a

money,

; The

deposits would affect

merely

not

interest

of

the quantity of money,

on

prices,

the

abundance

reserves

aside,

that
use

pends

■»

discount

,

the

but that the rate of interest de-

■

money-market studentsl have had

the marginal product of

erned by

the

notion

from

More

they

brush

may

the

arises

The Future of Interest Rates

119

(315)

COMPANY, INC

^

_

Continued

formerly very
on

page

121

120

nothing in the picture

from page 118

Continued

to indicate
activity.

now

tion in results from farm

any

great reduc¬

interest rates

and

well

It is

the highest'in nearly a

are

rise

generation; and yet Federal is still shaking its finger
rather than its fist. There are scattered signs that Fed¬
eral

tinued

but I still think Federal
that the end of the boom is in sight.

will

answered,

MILTON

1957

has

moisture

should

be

had

a

nomic

should

and

serving

this

serve

in

are

the

strated

excellent

customers, and the demand for credit
not kept pace with the rest of
the country.
feel
quite
confident
prospects for 1957.

NORFLEET

our

about

which

to

usually
struct

last

As

years.

many

southern

enabled

the

cities

have

banks

to

become

better

fulfill

centers,
out

and

This

these,

growth
such

of

an

Our

jobs

of

and

course,

new

Norfleet

aid

in

Turner

stimulating

many

section

the

of

the country, to a
large degree, is yet
income produced from farming. Farmers
busy preparing the soil for new crops. All activities,

of course,

must

be in

keeping with the requirements of
farm
legislation.
Net results from
farming over the
past few years have been
relatively good and there is

more

or

output
has also
a

of

such

plant

a

to

our

Co., Inc.,

as

banking

stock

at

of

Net

proceeds

ing electric power from the atom.( We must resist the
of those who would obstruct the program and

legislation which would put the govern¬
of building atomic power plants
with the intention of selling power therefrom on a pref¬
erential basis to government agencies, municipal sys¬
we

must oppose
in

ment

the

business

tems and the like.

We must inform people of the facts and

their

fair

of

sense

plied
bank

toward

from

the

your business!

the

be

of

of
ap¬

repayment

and

California,

(N. J.), and for
company

a

and

upon

the

DR.

Friendly government, favorable taxes

•

High worker morale, increased
productivity

GROVER

D.

TURNBOW

The

dairy industry in the United States has had tre¬
growth in the past 15 years and there is every
indication that this growth will continue for many years

mendous

to

In

come.

analyzing the reasons for this growth,
find

value
and

in

of

new

population of the country,

understanding

lease

with

Climate ideal for living and
working

Paul,

its

the

development

sales

Minn.,
and

offices

and

its

advertising

in

These

bright

combined factors point to a
for the industry in

outlook

1957.

During recent

ventures

can

advantages
be

ground" study

relocation

or

entirely

new

fully realized only by extensive "on-the-

We'll gladly assist in securing information

from local sources. Let
trial

for

turn, has resulted in the development
new
dairy products, better meth¬

of

ods

of

kets.
Dr.

G.

D.

Turnbow

will

areas

and

gradual

merchandising and
Expansion

will

be

us

know your needs.

Development Service,

P.

o.

Box

3100.

Address: Indus¬
Miami 32.

Fla.

turing
liquid

MIAMI,

V



Soilax,

LIGHT COMPANY

FLORIDA

the

in

Tetrox,

include:

For this and other
reasons, Foremost
with various agencies of
our

eration

Dairies, in

Soilax,

ufacturing
in

Slates.

six

activities

and

the

liquid

detergents

commercial

dish¬

washing field.

For the

30,

1956,

fiscal

the

on

year

page

ended

company

sales of
of

common

share.

Glickman

Corporation
Glickman,

Chnii

m an

plants

The

in

the

company

man¬

carried

United

believes

"We Are Interested
In

Real Estate

had

has

122

June

net

$15,498,774 and net profit
$558,298, equal to $1.81 per

in

Finish,
Its

are

a

coop¬

government,

Continued

St.

Super

future

time

diminish in their importance when the
underpriveleged
people of the world are properly fed.

selling powdered and
detergents
and
cleaning

Electrasol and Soil-Off.

on

in

about

important reduction of milk surpluses.
dairy industry is vital, not only to the
economy
of our
country, but to the health of the people. We, at
Foremost, believe that communism and world strife will

and

products

mar¬

The

in

agents for commercial dishwash¬
ing and household use. The com¬

new

marketing

new

pursued

bring

City, is engaged princi¬
pally in the business of manufac¬

pany's

FLORIDA POWER &

in

but

principal
offices

important

years,

contributions have been made to the

industry through research which, in

New York
full

foreign

of

markets.

Louis J.

general

the

of

dairy products in the diet

plant which
to

we

general it is due to the

increased

an

that for several
years it has been
of the
leading producers of
use

that in

increased

one

powdered

Foremost Dairies, Inc.

President,

Economics Laboratory,
Inc.,

I

of such efforts.

success

Lyndhurst

intends

upon

enter¬

con¬

Dallas, Tex.

•

Florida's

free

and

Chi¬

the
power

depend

the

of

equipment

cago,

manpower

defending

of

machinery for its plants in

Check your future against these
present

in

on

sale

will

loans, and the purchase

installation

assured

play

prise system which has made America great. A "bright
future" for the electric industry depends in I no small

Economics

shares

common

made

efforts

price of $15

a

with

great strides now being

share.

these

power

syndicate,

100,000 shares

Laboratory, Inc.
per

unfair basis,

managers of an in¬

15, offered
common

an

by private industry in developing processes for produc¬

utilization

for

on

,

continue the

must

effec¬

power plant in Michigan at
site southwest of Detroit. It is
expected that the plant,
be known as the Enrico Fermi
Atomic Power Plant,
will be ready for initial
operational tests in 1960.
Expansion activities pose many problems that
must

the

Easy recruitment of needed

We

have been determined, substation sites
selected, and work is progressing on acquisi¬

vestment

Growing" markets, high buying

power.

routes

Jan.

•

compete,

industry such as—more TVA's, more multiplepurpose dams, more
socialized power, more political

been necessary to begin carrying
system of 230,000 volt transmission lines
step-clown substations. Tentative trans¬

Economics Laboratory
Com. Stock Offered

•

and
can

1o

PALMS?

Dependable electric

we

W. E. Hutton & Co. and Kalman

advantages which Florida offers

which

projects

prvate

It is expected that
ultimately four
added, bringing the total capacity of
million and a half kilowatts. In order to

a

&

•

way

pioneer commercial atomic

READING

•

plan

to

years

a

MOW WW YOU OH
r

spend more and more of the public's tax money

measure

utilities, manufacturing companies
and
engineering firms of the Power Reactor Develop¬
ment Company which is now
engaged in building a

of

upon

for

efforts of public power advocates who would

the

like to

especially necessary in the
of the inescapable fact that it

tion of necessary rights of
way and substation property.
During
1956,
Wisconsin
Electric
Power
Company
continued to take an active
part in programs which
seek to develop practical
ways in which atomic energycan
be used in the production of
electric power. It is
one of the 26
private

payrolls

greatly

it

have been

industry

expected

resist

Creek.

associated

mission

the small communities which play
important Dart in the economy of our Southland.

dependent
are

additional

period.

.

regulation that we must work for a favorable climate in
which to conduct our business.
We must continue to

are

plant. The only

the

plans for

and

industry.

Oak

plant to

transmit

These commissions, with each
year's
experience, have become more suc¬
new

also

"

_

of government competition and

within the area

is

units will be

the

com¬

rated commissions which devote their
entire
time
to

cessful.

at

such

Many of the southern states have,
the past few years,
inaugu¬

creates

are

that

our

unit

within

securing

power

service

It

Accordingly, we announced plans in 1956 for a fifth
generating unit at Oak Creek. The new unit will have
a
capacity of 250,000 kilowatts—more than double the
capacity of any of the present units. Our 10-year pro¬
gram also includes plans for a second 250,000 kilowatt

a

This has

the credit requirements of the
panies located in our area.

new

electric

obligation to the people we serve
competitive position is to spend money
for business that we expect to get.
prepare
several years hence.

bringing
regional dispersion of deposits,

important banking centers.

three

takes

tively discharge

result and because of national trends
toward decentralization
some

good

now—to

been

several

made

and maintain our

furthering the trend of diversification
experiencing

have

we

a

which

double within

Long-range forecasts
utility business because

TURNER

opinion, the outlook for banking in the South

the

we

demon¬

a

handle

to

demands

Gould W. Van Derzee

over the next twelve
months continues to be favorable.
Southern banks have been enthusiastic in their
willing¬
ness to cooperate in

over

when

1956
on

needed

President, The First National Bank of Memphis
In

in

well

was

long-range 10-year
construction program begun in 1954.
This
program
contemplates expen¬
ditures of more than $300 million
to
practically double the facilities

needs of their

We

industry

progress

has

our

our

electric

however, the banks

area

condition to

Milton Tootle

life.

plans for the years ahead
are
based on just such a premise.
Our faith in a bright future for the

helpful.

prove

industry itself.

At Wisconsin Electric Power Com¬

its

badly needed
farming through cloud
irrigation are in prog¬

I would appear,

programs

the financial markets which supply the necessary
with sound management and informed regu¬
lation, the long-term future of the electric utility secu¬
rities ' market appears as bright as the future of the

possibility of momen¬
tary ripples in the economic picture of any industry, we
feel that the future of the electric utility industry is
bright indeed. All signs point to a period of many years
during which our services will con¬
tinue
to play
an
increasingly im¬
portant role in all phases of eco¬

the lack

years,

definitely

paid. The tremendous costs of utility construc¬
will naturally place a noticeable burden

the price
tion
upon

Electric Power Company

increase

for

to lie
than a

seems
more

ever-present

pany,

seeding and

should

prosperity.

Disregarding the

effect.
to

1957
enjoy

Chairman of the Board,

During the past few

ress

South

Wisconsin

satisfactory year;
with
one
reservation, we must have moisture
as
we
serve
a
territory dependent
to
a
large extent on agriculture.

Efforts

barometers

prosperous

G. W. VAN DERZEE

that

moisture

The

us.

with the national
indicating con¬

along

year

the
a

increase in cost to a reasonable extent as
the price of everything else advances, they must also
retain their low cost when compared with other services
or
commodities defined in terms of value received for

funds but,

very

of

for

TOOTLE

believe

we

of

normal share in this

Joseph, Missouri

St.

analysis,

our

this

business,

and

succeed

President, The Tootle National Bank,

In

high
most

good

ahead

nothing decisive in this direction has yet occurred.
Accordingly, the question raised a year ago remains un¬

opinion that the gross national product will

new

With

a

income.

its struggle to end inflation, but

be winning

may

our

to

Thursday, January 17, 1957

the years ahead. While our services must

solved in

be

...

necessarily

.

"

as

Chronicle

and Financial

The Commercial

(316) '

-

Everywhere'

Number 5604

185

Volume

>7

The Commercial

. . .

(317)

and Financial Chronicle

it, but as the result of
policies on the part
of the Federal Reserve system and

nique,
but merely
an
extreme
application of an old one.

need

for

cheap

The Future oi Interest Rates
important in the United States.
When the State taxes inheritances
at high rates and uses the pro¬
ceeds for current expenses, it is

economic

should
debt.

when the
State taxes incomes and uses the
proceeds in paying down public
dissipating capital But

grow

When
of

sources

is

clear

crease

than

i

Canal.

i'j

borrow

to

ned

For that we plan¬

something

like

but we did in fact
only $135,000,000 because

$300,000,000,
borrow

fiscal surpluses provided the rest.

of

All

im¬

river and harbor

our

provements, all of our Federal
public buildings, our Federal con¬
tributions to highways, our navy,

will

four

debt

lends

or

puts his

if he

the

on

into

money

But

if

proprietor's funds in

prise,

mortgage
savings
savings
enter¬

build a home, or to
already contracted, or
to buy corporate shares, he is not
increasing debt. Corporate thrift
reduce debt

increases

capital without

in debt at all.

crease

taxation

for

capital

any

reduction

a

in

debt.

capitalization involves
of debt.

credit

by

in¬

a

means

a

in¬

capi¬
bank

dollar-for-dollar

ties

sources

No country has ever over¬

some.

we

ernment

and the Federal Gov¬
has
been
dissipating

sion.
too

have

capital.

ital
Careful Use of Fifth Source

fifth

The
new

bank money.

To

economists

older

would

doctrine

anathema.

be

of the

many

this

bank

much
never

times

many

expansion.

had
We

had any excess of cap¬

from

created

first

the

four

sources.^

it

How,

is

There

debt

and
no

identical.

are

creditor

without

a

and no debtor without a
creditor.
Expansion of bank de¬
debtor,

posits is the creation of debt, the
debts of the banks to the people
or their government iry> exchange
bank his note, his liability, and in for the liabilities of the people
exchange the bank gives the bor¬ or the government. The ability of
the
banks to repay their debts
rower its liability, a deposit credit.
would

be

asked1,:

the

can

who

mere

interchange of two liabilities cre¬
ate capital?
A borrower gives the

while
we

can

that

we

have

now

I

the

of

capital? And
yet for the borrower it is enough.
Armed
with
the
new
deposit

may,

this, shorten the supply
goods and force an
involuntary abstinence on the part

of

consumer

of the consumer, but a
created
which
would

not

the loan

at

time

a

have

If he gets

when

business

their own

debts.
This

is

machine is credit is

otherwise been created.

expanded

have

they

created

bank
expanding against debts
true

for

When bank
a

when

even

productive purposes.
credit is expanding as

substitute for the savings

of the

do

slack,

This

may

would

have

seemed

very

who

held, and properly in the cir¬
cumstances of his day, that a bank

ally it
central

has

been bank
of issue.

banks

notes of
But de¬

posits are also demand liabilities,
and are also susceptible to abuse.

given by
some comparative figures.
In the
term
purposes, could lend to the
merchant
or
manufacturer
only last war, between mid-April, 1917,
safely lend only for short-

those

funds

quickly

which

returned

by

be

would

the

sale

movable

Perspective on this is

and

December

million

forge

billion

the smelting house.
individual
capitalist
or

31,

1918, we ex¬

of panded commercial bank credit in
the United States by 5 billion 800

goods, and must lend no
part of the funds needed for the

is

bonds

are

to

when

very

currency

no

pushing

By

we

Federal

the

this safe.

make

the

in

niques. I

way

of

expand

expressed
techniques
I

see

new

would

employment

of

old

operations by the Federal
Reserve
banks, for example, in
the last war we used them for a

time to facilitate the

a

bank

flexible

in

credit

the

each

of

loans

the

readjustment.

There

are

in

indeterminate

ele¬

calculations.

One

these

to the legal limit, which

Continued

their reserves

pull down

on

page

Commercial State Bank
and

Trust

Company of New York

bought

some

government
them for

a

for

a

Reserve

banks

tens of millions of
securities and held

were

put through, adding

few days to

securities at

December 31,

great loan trans¬

government

stage of the last

any

1956

,

RESOURCES

the reserves of

continuous holders of

Hand

Vnd

Cash

on

U.S.

Government

$ 22,549,714.55

Due from Banks

24,483,908.23

Securities

1,246,202.25

Other Bonds and Securities
Loans and Discounts

./...

56,549,358.07

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

119,180.74

Accrued Interest Receivable

Customers' Liability for
Credit and

Letters of

632,636.33

Acceptances

849,457.26

Furniture, Fixtures and Improvements

185,564.33

Other Assets

war.

In

STATEMENT
OF CONDITION

few days to grease the

wheels while the

actions

formerly Modern Industrial Bank

In connection with
three Liberty

first

Federal

1924

Reserve

hundreds

and

1927

bought
of

banks
of

millions

ment securities

the

Federal
several

$106,616,021.76

govern¬

and held them for

Only

dollars in

deposits and 7

in loans and

investments.

replenishing the reserves ci
and permitting them to

LIABILITIES




Deposits

$ 96,651,087.21

;

•

Unearned Discount

907,335.47

>

Liability for Letters of Credit
and Acceptances

632,636.33

...'

Dividend Payable January 10,

42,905.50

1957

184,785.35

Reserved for Taxes and Interest
Other

476,653.92

Liabilities

ber banks

expand credit of low rates of in¬
terest against government securi¬
ties.
Between February of
1942

April of 1943 the Federal Re¬
serve banks bought over $4 billion
and

securities, the
figure for Feb¬
ruary 1942 being $2 billion $249
million, and the monthly average
for April of 1943 being $6 billion
$372 million. This is no new tech¬
nique, but the vast scale of its

of

government

for

the post¬

flotation of each of the four great

Liberty loans.

the

to

market

at

in

very

In the matter of open

techniques.

gold

refugee

tech¬

rather an altogether

see

exaggerated

limits,

dis¬

banks

Reserve

of

drawals

lowest legal

face the probable with¬

postwar period, and the need

capacity

the

the

ments

to

expand and

member bank reserve require¬

or

capacity

war

of

Capital Funds:

$2,145,375.00

Capital Stock
Income

3,750,000.00

Debentures

Surplus and Undivided Profits .1,661,242.98

164,000.00

Reserves

7,720,617.98

monthly average

We pursued a very conservative
who
financial policy in the last war.
could
wait
many
years
for his
The
money
market was firm. use makes one ponder.
money was justified in doing that.
In the last war Federal Reserve
Every effort was made to hold
But when
the
forge and the
down bank expansion.
The gov¬ rediscount rates were-held below
smelting house are represented by
ernment made interest rates on the market to facilitate war fi¬
shares of stock or by bonds in
bonds which attracted the peo¬ nancing, but they
followed the
thousand-dollar denomination, and
The great bulk of market up as the war went on.
"when a broad and active stock ple's money.
the public debt was placed with The New York Federal Reserve
market exists in which the shares
the people rather than with the Bank placed its rediscount rate
or the
bonds may be readily sold,
banks.
This expansion of bank at 3% in 1917, moved it up to
the
banker
who
lends
against
credit was adequate to win the 3Mj% at the end of the year and
these as collateral may quickly
war.
to 4% early in 1918, still holding
get his money back, and the for^e
In the period from June 30, 1922 it, however, below market rates.
and the
smelting house may come
to
mid-April, 1928, without any At the present time the Federal
to the
money market and get bank
Reserve recLcount
rati- uac
money.
F'Eating the Seed Corn," Chase Eeohalf of 1% for auvances secured
One of the great essentials for nomic Bulletin, May, 1936, pages 30-37.

the

to

the

even

strange and weird to Adam Smith,

could

credit

there

orders.

have
machine without forcing
he

that

government

and if

the people in financing war and de¬ many months, generating an alto¬
new
startling increase in the
any struction, and when the assets of gether
abstinence upon the consumer. It the banks rest primarily on the volume of bank credit.
must
In the present ^erirH
be
recognized
that,
held future taxing power of the gov¬
within limits, this is a real source ernment, caution is obviously in¬ eral Reserve banks have bought
of
additional
capital,
and that dicated. Excess here has been the government securities in terms,
properly handled is a safe source typical
breeder
of
"inflation" not of tens of millions or of hun¬
of capital.
through all modern history. Usu¬ dreds of millions, but of billions,
is

which

calculations

seen

indicate

bank

take

upon

the

in

of

course

depends

have

are

great, if no question is raised as
to the credit of the government

go?

new

.

with respect to possible,
particularly
since the
anticipating that reduction of the reserve require¬
it will be fully used.
I believe ments increases the multiple of
that there is no validity at
all
expansion against excess reserves.
in the contention that new tech¬
But it can hardly be contemplated
niques have made the abuse of that we will push the Federal
bank credit safe.
Reserve ratios to the legal limits,

the quality and the member banks to prevent an
undue tension in the money mar¬
liquidity of the debts which the
banks take in exchange. An im¬ ket. In connection with the fQurth
Liberty loan of 7 billion dollars,
credit, he can go into the market mense expansion of bank credit
the transactions were larger, ex¬
and divert labor and existing re¬ almost inevitably means a deteri¬
ceeding 200 millions of dollars,
sources
from
the
production of oration in the quality and liquid¬
but again only for a few days. The
hats and shoes to the production ity of the assets of the banks,
of a machine.
namely, the debts against which Federal Reserve banks were not
He
How does this create

Further reduction of the reserve

and those
requirements of the member banks
Federal can make further
expansion

of

reversal

policy

rates

money

would

we

no

see

Reserve

Techniques Are Not New

few days

Credit

is

capital

of

source

have

We

rates

I have heard the view

little

other way,

Federal Reserve system,

ments

which

taxes,

are

How far

which

reserves,

nically possible to go a great deal

de¬

makes

and

further, however.

go very much further in this
connection is in the hands of the

look very modest,
maintaining absurdly

interest

this.

of capital

sound and whole¬

which

scale

a

note

to

against government securi¬

on

to

Moreover,
stood at
nearly $7 billion in early 1941,
dropped below $1V2
billion on
June 23, 1943.
We are using up
ammunition very fast. It is tech¬

by Act of

reserves

banks

Reserve

excess

reduced

we

be

to

75.8% in April of 1943.

Congress in 1917. There is no new

bank

expanding

now

bank

war

is

deposit liabilities combined stood
at 90.4% in April of 1942 and at

concerned.

are

last

the

It

banks.

technique here, though the power

created

the

about

in

member

1922-28 episode
and

of

posts—all were paid for done any of them. The doctrine
rather than out of of "over-saving" rests on a mis¬
borrowing.
Since 1932 the trend interpretation of phenomena grow¬
has
been
overwhelmingly
the ing out of excessive bank expan¬

if

credit

low

other, it is obviously
capital to be used
cautiously.
no

absolutely

banks

we

brought

are

of

out

>■

We

army

our

$

quently

from

The first four

Chicago
But

member

eral

the

New York and

as

great

observed, however, that this lee¬
way is being used up rapidly. The

requirements of the mem¬
and they have already
far

be

the

banks

so

notes

ratio of total reserves of the Fed¬

reduce

to

power

against

deposits,

can

Requirements

done this

moralization of 1931 and 1932.

if

are

a

We

rates.

world, but

capital. From this point of view,

most

in

unmanageable

of

source

capital

created also an
debt, which first
generated the high interest rates
of late 1928 and 1929, and subse¬

increase in debt with the growth

the

have

now

great deal of physical capital in

the

Direct

expanding

of

interest

down

creation

On the other hand,

created

tal

no

to

world
which had spent four years in war
and four more years in waste and
disorganization after the war. The"
world
ought to have had high
rates
of interest
(a) to compel
economy in the use of such capital
as was available,
and (b) to en¬
courage additional saving. But on
a
vast scale, we substituted bank
expansion
for
savings,
pulling

cluding the paying down of public
debt, means a growth of capital
with

was

the underlying shortage of
capital from the four normal

sources

Public thrift,
purposes,

this

of

ber

to

or

effect

Reserve

and 35% >
additions
made. to. the reserves of

40%

against

The Federal Reserve authorities

invest¬

reserve

saver

an

The

and

loans

mask

a

his

uses

in

real

in¬

rapidly

more

credit

bank

dollars

ments.

Capital
individual thrift

by

increase

buys bonds

as

dol¬
bil¬

lion

they increase debt.

industrial or railroad
bonds or in other capital uses, and
increases the supply of funds in
the capital
market in the same
way that the savings of the indi¬
vidual consumer do. Our Federal
Government
had a magnificent
record in this respect down to
1933. It had increase public debt
down to that date only for war
or for temporary emergencies, and
had always
promptly set about
reducing
the
debt
when -the
emergency was over. The one ex¬
ception was the borrowing for the
Panama

first

capital much

bank.

reinvest in

United States by 13V2 billion
lars in deposits and by 14V2

callable in one year or less.
again there is no. new tech¬

or

Here

expanded

we

the

examine the five

the

in-flowing gold,

in

capital listed above, it

that

accumulated

or

that

ing

money

commercial

capital
rapidly than

more
we

creating new capital.
The' retirement of Government
bonds puts into the hands of the
bondholder funds which he will
it is

debt,

is

progress

to

by government obligations matur¬

of

1Continued from page 119

121

$106,616,021.76

MANHATTAN
116 Fifth Avenue

528

Broadway

•

1400 Broadway

•

318 Grand Street

BRONX
352 East 149th Street

BROOKLYN

1574 Pitkin Avenue

•

815 Broadway

781 Eastern Parkway

QUEENS
99-01 Queens

Boulevard

Member Federal Deposit Insurance

Corporation

123

'

122

(318)

The Commercial and Financial Chronicle-.;.

Continued from page

The

120

sive

foregoing statements give

business

(established milk production plants in many parts of the

within

world.

business

We

hope

in

and in

1957

the future

continue

to

rely

we

This is

the

one

to

way

milk surpluses and, at the

use our

time, the dairy

game

parts

industry shall be contributing to

dairy

products

wasted.

dairy

and

for

milk

to

formerly

components

be

tries.

and

priority projects in

tions will be in 1957.

But I,

have confidence in

cans,

every

effort

will

be

Administration

made

to

keep

and

Business

again

had

ULLMAN

of

to

to remain tight and

money

in

be

good

factors

this

there

year,

which

are

continue
are

and

it

is

to

debt.

know

that

;
•!

Carl

spiral

W.

and

greater

goods

drop

to

seem

great

any

well

as

likely that total
extent.

necessities.

as

consumer

It

may

So

it

spending will
that

be'

even

total

consumer

spending will increase. No one can know for
certain what will happen since the
wants, needs and
fears of Deople generally will
determine what is to come.
J.
Chairman

C.

of

VANDER

the Board,
and

are.

concerned with

distinctly different
of mechanical and electrical
equipment and ap¬
pliances for industrial, commercial, institutional
and
domestic use; also with the
mining
concentration

ferrous

metallic

their

they

of

certain

sales

In

ores.

the

order

volume

and

to

earnings,

are:

create

the

indication,

recording and
operating conditions in a
variety of industrial and do¬

control
wide

of

mestic

machines and
automatic
guidance
in

sequences

C.

Vander

in
host

of

(3)

small

such

range

space

and

tools

ventilation

physical

types for

and

tion and

manufacturing; for
laundering.

the

and

fume

removal;

These

bearing

materials

of

a

and

construc¬

rfianganese,

lines

are

produced

number of

$40,000,000.




to

the

in pro¬

lor

possible,

goods

contrary,

and

strength
and

of

tinued

and

amount

of

Advances

additional

stimulate

create

ployment

of

opment

more

Both

a

a

and

demand

in

and

consumption

nation-wide
com¬

1956 amounted

of

capital.

research

This

and

modern

that

this, government expenditures

civilian

purposes

in

1957, and for

in

1956.

are

expected

some

years

This company

purpose..

for

to

both

be

been

its

1957

sales

account.

volume

be

for

our

of

additional

an

government

the

most .modern

handling

It

is

to

It will afford

existing

Sellersville,
be

to

and

plant,
from

Besides pro¬

business

attractive opportunities for cost
in the manufacture of
guages and instruments.

company's
of

growth,

to

over

area

it

reduction

the

spent for this project and for

this

will
for

have

work

is

about

manufacturing

as

completed,
1,100,000

their

the

square

purposes.

The

including its subsidiaries, employs about 3,300

at

present

and

its

payrolls

in

1956

of

the

carrier

a

future

be

restricted.

I

case.

a

revision

using its inherent advantages
serving tne public at the lowest

in

strength

which

of

cost

of

includes

country's

our

all

carriers,

transportation

depends

providing

tne
a

the

upon

service.

The

public

bright.

However,

we

would

policy.

The prospects for railroad
business in the

coming

cannot rely solely

produce

greater

on

an

traffic

year
ever-

volume.

The basic problems I have mentioned
must be .corrected
if the railroad
industry is to reach the full potential of
which it is capable.
In

the

meantime,

ahead to improve

however,

and

efficiency

and

working in the
I

we

strengthen

Prov!de better service

for

our

On

economy.

are

steadily

moving

our

property so as to
customers with greater

the

Erie,

have

we

been

of increased industrial

area

development,
extension of piggy-back service, specialized
equipment
to meet
shippers' needs, mechanization of track
coordination

electronic

machines,

of

duplicate facilities with

accounting

provement and

activity
1956.

cost

enter the

we

are

at

macnines

favorable

a

new

factor.
to

otner

other

railroads,

service

year, most indicators

higher levels than their

should continue

point to

and

im¬

saving methods.

The momentum

of

this

Plant
be

a

of business

average

during

higher level is definitely

and

equipment

expenditures

bolstering influence.

All

signs

higher level of automobile
production than in

1956 and because of
the loss in steel
production this year

due *° tne steel strike,

we may expect an increase in that

sector
We

believe

relative

these

stability

factors

near

should

produce

a

year

levels of the last
quarter of

of

1956.

+eI ^ere^ore> anticipate a moderate increase in freight
volume in ^957 somewhere in the neighborhood
of
om

3%.

The

increase in dollars will
be greater,
however, be¬
an
emergency increase in freight rates
recently
granted to balance
off increased
wage rates, material
prices and related
items of expense. We
strongly hope
the interstate
Commerce Commission will
act promptly
on

cause

of

the

to

railroads' request for

allow

a

a
further increase in rates
reasonable rate of return
and attract the new
capital that is so
urgently needed. With an
rate level we
can look with
confidence to a

investment

adequate
amounted

future, will

not be the

.

from

extent

benefit greatly by such

*

Approxi¬

buildings of the plant to improve

When

factories

floor

company,
persons

costs.

ma¬

the

afford

be

equipped

the

on

adoption of legislation that will recognize tne
principle
competitive pricing; in other worus, the freedom to
charge rates which will attract the traffic and still cover

a

resulting

business.

viding accommodations for further

build¬

approximately

area

congestion

instrument

our

in

machinery

of additional floor

severe

steady growth of

1957.

production

apparatus.

square feet

relieve

manufacturing

Guage and Instrument Plant

fair and reasonable return

a

of

As

Pa., is to be undertaken in

feet

The

Besides

sup¬

be

transportation policy so as to place all
transportation on an equal footing in competi¬
traffic.
Any policy is basically wrong which

for

system,

fa¬

were

im¬

great if not greater

possible cost.

devel¬

active

as

with

even

further

national

the fullest

to

|

Construction

167,500

will

earn

demands

prohibits

the

plier of government requirements and
expects that 25%
of

tion

voluminous

an

are

But

for

the

on

expanding economy to

thereafter, than they

has always

needs

other, equally important, is the need for

forms of

military and

more

the

our

of competent engineering and scien¬

tifically proficient personnel for

the

immediate of accomplishment, would

more

em¬

laboratory

for

request which is now before
15% increase in freight rates which would enable

a

The

company

product

shareowners.

our

sincerely hope that will

that

profitable

made

-

Commission

meet

are

for

has

Erie

employed in providing the service. Unless tnis
request is granted, the railroads will find it necessary to
curtail, or cancel, many of their capital improvement
plans. Under such conditions, it is obvious t.iat future
progress will be impaired and the railroads'
ability to
improve service and provide the equipment needed to

likely

are

the

capital

these
to

for

expenditures,

the railroads to

un¬

in

power

services

and

maintaining

corps

production

Their

it for

govern¬

technology devoted

which

prompt and favorable decision by the Interstate Com¬

a

merce

of financial aid for

sources

purchasing

in

workers

marketed

but

ever-

big question is where is the money to come from
do the job. Much of the answer lies in two
areas; tne

to

which

funds,

dividends

first, and

to perpetuate

pension

opportunities

engaged

activities,

cilities and

will

to

are

an

The

have

we

power

economy.

products

new

both

constantly

to

we

tnan in the past.

circumstances favorable

administered

to

with

done if

economy.

provement and modernization

unemployable people, should help in main¬

fair

a

should

terials

be

growing population and

a

expenditures

sizable

tnese

in

American

privately

of

so

with

has been made,

progress

mucn

still remains to

economical operations.
Tney have helped to
with constantly rising costs and enabled us to main¬
steady employment for our employees and con¬

tain

it

services

products

purchasing

are other

development

or

While

more

Wilier

von

these

more

cope

enlightened and ambitious

employment funds and other

is

with

property improvements amounting to $172 million in the
past ten years have proviaed us with a good foundation

increases

the quantity and
quality of their output as well
and

foreign countries.

bined volume of
production and sales in
to about

the

leadership will strive

zinc, lead

two separate,
on

On

for

abundant

the alteration of older

ores.

diversified

Capital

product

diversified

our

mately $5,000,000 will

through eight integrated divisions and
wholly owned, subsidiaries
operating
scale and in

of

commercial and institutional

(4) Mining and concentration
and silver

a

appliances.

by several different filtra¬

properties of

creating

means

ment

tax

income

Harry

increasing industrial

a

great

solicitous government and

by all

in

payroll

Federal

satisfied

forward

move

little, tending to make
capital more expensive,
problem for wisely and

up

demand

industrial and social

ing at

methods; for scientific testing of the
strength

other

are

no

With

for

machinery and equipment |for various

as

heightened
varieties.

prevalent,

in aircraft and for

sizes

of

portable

for liquids-solids
separation
tion

processing

Fractional horsepower motors

machines,

Industrial

purposes

a

of

other applications.

numerous

Pyl

(2)

appliances; for

manufacturing;

various purposes
John

back¬

opportunity to participate indirectly in supply¬
ing the end-products to satisfy such growing demand.
The high degree of
employment and earnings that is
a

not

are

great deal

a

ample

-

passenger

increase

resulting from acceler¬

results, however.

company's production and financial planning for
the next few years is founded on
expectations of fairly
steady growth of population in this country that should

all

(1) Pressure, flow and tempera¬
ture-sensing guages and instruments
for

price

non-

importance, with respect

annual

of

borrowed

of

pose

classifications.

groups

of

moderate

improvements

to

seems

taining

American Machine

Metals, Inc.

and

incurred

expenses

With

goods.

our

with

employment

retired

PYL

This company's business
operations
the manufacture and sale of three

of

many

or

increased

reduced

benefits

We

This

meet

though some resistance to prices might
develop,
there is a steady increase in our
population and many
people who formerly had modest earnings now have
larger earnings and are in the market for more
not

order

to

wages

compensat¬

no

ated amortization.

on

the

services, for luxuries

tax

sizable

a

due

and

taxes

a
restraining influence
ill-considered and too speculative expansion of credit
and facilities.

Ullman

Even

does

labor, materials and

efficiently managed businesses.
is likely to prove beneficial as

inability of people depending on
the rising cost of
living will resuit in a contraction of their buying power. Any dislocation of purchasing power can affect our
economy.

and

accruals

not

While financing costs

that this cannot go on indefinitely and
that: when and
if the increase in
private debt slows
down, it will have a restraining effect on business. We
also

unfilled

and

rates,

reflect appreciable increase
in product
1956; it seems likely however that some
adjustments will have to be made, as the new
advances, to compensate somewhat for increasing

this

employee

with

1

a

in

together

the

It appears

fixed incomes to

existing

'

volume the past years has been

wage-price

Our

Nov.

was

were

34-day
industry this sum¬
as

ing increase in freight

that enjoyed in 1956, which was
quite favorable. Earn¬
ings in 1956 should be in the vicinity of $5.80 per share.

The

Then,
too,, the substantial increase in busi¬

rising

America.

there

factors

increase in

an

effective

earnings

though

even

adverse

mer,

gen¬

designs, ma¬
terials usage and
manufacturing procedures, also through
more
elaborate tooling and replacement of older
pro¬
duction machinery
with more efficient models, it is
-hoped that a profit margin can be maintained to equal

little likelihood of lower taxes.

a

expenditures

our

with $7,share in the previ¬

a

strike in the steel

expec¬

an

duction
;

clear

by

this

in

expect

year.

such

are

marketing

and

confidence

they

our

by

hosts of

and

supported

financial

reflect

of

which

to

does

year

that aid to foreign
military expenditures
necessarily will be large. There is

ness

production,
well

in

a

This improvement in

upward

international situation remains acute
countries

businesses

$3.03

We

$8,100,000,
share on

compared

$2.97

or

costs .of all kinds.
about

be

stock,

achieved

drastic interference with commercial intercourse
check the mostly favorable economic trends

or

pricing

some-

disturbing.

the

fortified

North

log

interest rates

higher. The Federal Reserve
Board, recognizing the danger of in¬
flationary pressures brought about
by the heavy demand for credit com¬
ing from large business expansion
and the high rate of consumer
goods
sales, followed a restrictive credit
policy.
•
should

ous

an

occurs

move

While business

in

Their

1957,

war

an

rate of

caused

892,000,

will

earning

to

common

increase of around 10%, provided that
nothing of
serious consequences to international
relations, such as

extremely good year in 1956.
activity brought a strong demand for
bank credit and long-term investment
capital. This con¬
dition

equal

own sales volume prospects
opening backlog of unfilled
orders equal to approximately half of our entire sales
volume in the year lately
ended, indicates the likelihood

President, The Dollar Savings and Trust Company,
Youngstown, Ohio

The high

1956

income

net

the im¬
labora¬

exceptions, our customers and
continuation, in 1957, of the active
that have generally prevailed

Our appraisement

for

CARL W.
1-

of
scientific
many

tation.
Their provisions for capital
erally support their convictions.

know
among

peace

tries, and increased

products.

own

our

available,

a modest gain in net
income
increases, strikes in other indus¬

1955- despite wage

over

component

conditions

planning pretty

nations of the world.

!

of

great

a

Company

the Erie Railroad will show

which

upon

and

few

a

expect

favorable

engaged.

like millions of other Ameri¬

our

manufacture

numbered

are

but

throughout

It is difficult to predict at this time what world condi¬

that

With

suppliers

1957.
;

the

materials

raw

WILLER

Railroad

When the final figures for the year 1956 are

our

manufacturers,
processors,
tories, transportation companies, construction firms, ho¬
tels, hospitals, institutions, etc., of this and other coun¬

Research and development to find new uses for

products will continue

in

them

of

portant

Research in recent years has shown us many new uses
of

used

Among

and the welfare of the world.

peace

suppliers

as

President, Erie

and

which

VON

W.

H.

have

we

different kinds of industries

great many

a

organizations, including those to
products are sold, but not forgetting those

this expansion.

.

idea of the exten¬

an

relations and acquaintances that

Thursday/January 17, 1957

$15,000,000.

Continued

on

page

124

,

Number 5604

185

Volume

.

.

.

The Commercial

and Financial Chronicle

Continued from page 121

flight from the
I

The Future oi Interest Rates
forecast the extent to which

)tn-

to the rate of interest when

pens
a

think

that

there

jections

prominent

of

who

men

ob¬

two

are

when

hesitate,

money

the

Hamlin

suggestion is made that the Treas¬

doned it. In his

in circulation will increase Theory

expansion, and one must
assumptions regarding the
volume of private loans that the
banks will be called upon to make
if a great rise in prices comes and
the
industries ' are
obliged < to
turn to the banks to increase their
working
capital funds.
At the
moment
such-* loans
are
going
down, because the government is
financing so much of the indus¬
trial expansion. V- : '
::
the

of

make

in

a

plies

of

footnote that the theory ap¬
not
merely to short-term

various
ferent
page

There

of

advocates

are

cheap

policy who would rest
their position on the doctrine of
J. M Keynes, who rejects entirely
the so-called "classical theory'' of
interest, who rules out time prefe r e n c e
and compensation for

in¬
terest, and makes the whole de-

waiting in the explanation of

termination of the rate of interest
rest

preference

as

of money.

liquidity

on

If

against the supply

only money can be made plentiful
enough to glut sufficiently the
desire for hoarding on the part
who

those

of

to '• remain

wish

liquid, interest can be held at any
desired low figure, according to
the

this

I regard

Keynesian doctrine.
doctrine

as

absurd exag¬

an

geration • of one
factor in the
theory
of capital
and interest
whicn I have given above.
But

.

\

■.

out that

„

interest

for

time.
same

dif¬

But

by

book,

he

that the open market
operations of the Federal Reserve
banks in the United States in 1933
and 1934

chase

ties,

rates
and

were

of very

the

to

limited to the pur¬

short-dated securi¬

effect .of

but

little

market

money

which

reaction

may

pansion.

of

important

interest."

206

he

long-term

On

pages

debts

of

be
all

205

that

suggests

authority

deal in

banks which

would

greater

manageable
it.

The

for

holding
be

the

longer

solution

offered

it

less

and

.

long-dated

allowed

to

the

prepared
maturities

Corp.

I

be¬

banks

governments

subscribe

the

for

bonds,

terms

on

less favorable

subscribers,

par.

There

somewhat

ing

even

The

at 98% of
be better solu¬
case we should

on

in debts of

page

207

as

to what hap-

of

.

Federal

Reserve

See

policy.

Reserve Bulletin, July,

1943,

Federal

page

590.

Paterson New Jersey

debt in

comparatively few

a

ties

the future interest

of

Facing

for each

the

Statement of

well

50%
beginning at

overtime
40 hours

those

that

the

Treasury

520,365,268.77
.

25,255,569.66

Municipal Obligations

13,895,543.52

Mortgage Loans
Insured

First

or

Loans

and

614,215.69

—

15,840,463.54

Loans

which

at

in

the

sold

we

last

Accrued
Other

and

1,961,546.61

Fixtures

464,779.54

.......

Receivable

Income

511,281.17

...

222,774.09

Assets

$132,380,032.88

TOTAL
Amounts shown

are

net,

Board

vast

owned
Joseph f. Hammond
Vice Chairman

of the Board

Cowles Andrus
President
Norman Rrassler
Executive Vice

President

C. Wellington Dey
Executive Vice

President

Discount Collected,

$119,890,390.59
611,786.75

....

122,740.95

Stock

.

$2,700,000.00

Total

........

Trust

PASSAIC, N. J.




....

&

Co.,

members

With Livingstone,

Crouse

(Special to The Financial Chronicle)

DETROIT,

Mich. —Donald

with

Livingstone, Crouse &

Co.,

S.

R.

Building,

Penobscot
the

members

Detroit Stock Exchange.

PATERSON, N. J.

the

on

get

great

a

money.

deal

The

rates

still

realities.

think

I

that

prompt¬

ly ^to fund its debt into long-time
bonds in the hands of the people
while

unused

bank

deposits

are

great,
and
while moderate
rates are still possible. I

coupon

too, that such a return to
financial orthodoxy would greatly

think,

held in the

$34,063,215.86

strengthen the fabric of confi¬
dence in government finance, in
the future of the currency, and in
the whole economic picture.

Count! Bank
and

trust

company

Federal Deposit Insurance

Corporation

4,323,333

18,104,536
872,874

Municipal Bonds

Bonds and Notes...

Other Corporate

market)

(at

Preferred Stocks

1.897,237

Stocks

8,147.792

Common

$33,345,822
(at amortized cost)

Bonds

Pledged to Secure Trust

and Escrow Cash Balances

S.

U.

Government

Slate and

22,272,998

Obligations

4,467,845

Municipal Bonds

$26,740,843

$60,086,665

Marketable Securities

Total

Other Assets
Accounts Receivable

1,585,847

(less reserve)

739,177

Sundry Loans and Investments

$2,325,024
(at cost)

Real Estate

Schirmer, Atherton Adds

$6,261,133
Stocks of Associated Title Companies

Mass.

—

George

1,900,000

Title Records and Indexes

$77,769.460

Total Assets

LIABILITIES, RESERVES and CAPITAL

$

Accounts Payable
Accrued Taxes Payable

$2,101,491
Cash

Deposits

Indemnity Against Specific Title

as

4,487,367

Guarantee Risks
Trust

Escrow

and

Balances,

Secured

by

Pledged

26,291,697

Securities
Reserves

4,813,232

For Losses and Contingencies
For Market Fluctuation of

Unrealized Appreciation

6,787,896

Securities

3,732,154

of Stocks

$15,333,282

Capital
Capital Stock—Authorized 650,000 Shares at $20
Par Issued 1956—604,302 Shares; 1955—600,000

12,086,040

Shares

12,000,000
5,469,583

Profits

Undivided

the

members of
York and Boston Stock

New

Street,

Exchanges.

I

Total

H.

has become affiliated
Schirmer, Atherton & Co.,

Congress

208,099
1,893,392

$29,555,623

Pendergast
50

879,045

(at cost).....

(Special to The Financial Chronicle)

BOSTON,

5,500,000
761,133

Chicago Title and Trust Building Corporation.
Other Real Estate (less depreciation)

Surplus

with
Member

December 31, As of
1936

U. S. Government

Stocks

Assets

pledged
and

in

to

escrow

the

$77,769,460

Liabilities, Reserves and Capital
amounts

qualify
cash

the

provided

Company

balances.

J.

Brady has become associated

amortized cost)
Obligations...

(at

the

of

$ 6,317,593

Bonds

Inc.,

Exchange.

Stock

Patriotism

the Treasury should move

J.

$10,305,243.95

the above, assets

Department total

the

to rise progressively,
be kept moderate,
have a prompt facing of

could

we

so

In addition to

which

between those

would

financial

$132,380,032.88

TOTAL

interest.

investor's

but
if

PATERSON, N. J.

WEST

3,105,243.95

Profits

Capital Funds

Convenient Offices

LITTLE FALLS, N.

4,500,000.00

Surplus
Undivided

10

569,932.14

Liabilities

Common

money

might have

879,938.50

Not Earned

Building,

Detroit

of

the

McCarty

Campbell,
Buhl

E.

staff

joined

Marketable Securities

Liberty bonds and those now pre¬

Dividends Payable
Other

people

of

rates

termediate

Accrued
etc.

has

place
idle

of

won't take bonds with
low coupons in adequate
quantity, but patriotism, plus vig¬
orous bond
selling by alert local
committees, plus coupon rates in¬

of

Expenses,

the

by

vailing

Interest,

sums

present

after deducting

...........

has

Those

itself

by

Valuation Reserves

Reserve for Taxes,

Mich. —Harry

DETROIT,
Reeves

government can now get at mod¬
erate

LIABILITIES

Deposits

Campbell, McCarthy

(Special to The Financial Chronicle)

Cash

Liberty

war.

taken

already

created

25,755,401.66

Discounts

Banking Houses
Furniture

has
C. Kenneth Fuller
Chairman of the

27,493,188.63

Guaranteed

Mortgage

Joins

ASSETS

can

beginning at 3 V2 % on a
fully tax free bond in the first
Liberty loan, went up to 4)4%
on
a
partially tax exempt bobd
in the fourth Liberty loan.
The
immense
bank
expansion which

$132,380,032.88

...

said.

SHEET

BALANCE

elsewhere.

as

bonds

Resources

Obligations

1957, and

lending operations, Mr. Knox

for

COMPANY

State and

great

a

the

December 31,1956

of

of

deal of money from
people at interest rates below

get

of close of business

and Securities

maturing Feb. 1,

CHICAGO TITLE AND TRUST

would

rates,

Bonds

stock.

share of preferred

government contracts

on

think

I

|J

burden

realities

for the duration

and

war,

work

in

Condition

its

week

payments
as

Other

$67,000,000 of 3 !£% deben¬

tures

years,

give immense impetus to the move
for economy in spending even in
the midst of war, and in particular
might make the Treasury a strongadvocate of doing away with the
40-hour

—■—V

State and

deem

preferred shares are
at the option of the
into
common
shares at
of five shares of common

the rate

""■Something like this may now be part ity. We had better face the reali¬

Paterson,, Passaic, Little Falls, and West

U. S. Government

the debentures will be used to re¬

5%

holders

proceeds from the sale of

The

the financ¬

the point seems to have no valid¬

COUNTY BANK AND TRUST COMPANY

Cash

from

proceeds

of

group

underwriters.

unit.

per

1, 1957, John T. Knox, fiscal

through % nation-wide

shares of common stock,

$6

debentures,

1957, and maturing

1,

agent, has announced. Priced at
100%, the debentures are offered

convertible

say

may

Nov.

closed.

convertible preferred stock

at

yesterday

made

3%%

Banks

Feb.

dated

oversub¬

»books

the

and

priced

Net

than those given to

cash

Credit

Spar-Mica

of

been

has

was

16) of approximately $92,000,000 of Federal Intermediate

(Jan.

ing will be used by the company
to pay a portion of its construc¬
tion and expansion program.

higher yield issues with their

old

years.

Offering

pre¬

unit consisting of one share

of 5%

was

30

FIG Banks Place Debs.

500,000 shares of

stock,

and two

have

I

that

15

convertible

5%

Ltd.

scribed
Each

defer

we

the

of

common

easily

which
that

is

than

&

as

point,

that this problem

say

comes

Jan.

on

ferred stock and

happen to the
this

On

Allen

and

offering of units of 250,000

shares

ex¬

concern

announced

their

hold long-dated

now

governments.

now.

'

is

Lunt

&

tions, but in any
Spar-Mica Corp. Ltd. with its
varying de¬ have one
ready.
principal
executive
office
in
grees of risk. He concludes, "Per¬
Montreal, Quebec, Canada, was
haps a complex offer by the cen¬
Must Lengthen the Debt
formed for the purpose of mining,
tral bank to buy and sell at stated
The second objection relates to milling
and marketing feldspar
prices gilt edged
bonds
of • all
the
glass industry and the
the interest charge on the public for
maturities, in place of the single
debt
in
postwar years.
If the ceramic industry, and also, as a
bank rate for short-term bills, is
by-product,' flake mica for the
the most important practical im¬ Treasury were using the existing
easy
money to place long-dated paint and roofing industries. The
provement which can be made in
bonds with
investors, the point company has been engaged for
the technique of monetary man¬
would have merit. But when the the past 15 months in a program
agement/"** This, I submit to tne
of construction
for mining and
Treasury
is
financing itself so
Keynesians, is a complete aban¬
so
far as investors are milling feldspar at Cape Feld¬
donment of the theory that the largely,
concerned, with war savings bonds spar, in Quebec, and grinding at
supply of money in relation to
which are in effect demand de¬ Camden, N. J., and a program of
liquidity demands can govern both
posits after a short time, and improving the milling facilities
long and short term rates of in¬
of
a
subsidiary,
The Goldingwhen, looking at the whole pic¬
terest.
And
I would call their
Keene Company near Keene, N. H.
ture, it is clear that the Treasury
attention further to Keynes' warn¬ must refund a great deal of its

and

Keynes has himself aban-

as

limit bank

to

first

to what would then

the

on

The

new
more

monetary

I would point

Keynesian theory,

of

complains

the

in

believe

who

those "

to

rates

periods of
197 of this

much

money

system ought to tighten the

Co.

.

rates, but also to the complex of

"have

Keynes Reversed Himself

serve

ing,

Offer Oversubscribed

minds

the

in

Golding-Keene is presently mi
milling and marketing feld¬
spar
and has done so for more

Spar-Mica Securities

currency comes.

book, The General
ury
ought to make rates of in¬
Employment, Interest
terest that will attract investor's
as
the process goes
on, which and Money, page 167, he states
funds, and that the Federal Re¬
would pull down the magnitude the theory, and indicates explicitly
must

123

(319)

by

have been
business and to secure trust

statutes

to do

of

Illinois

of

The

124

Commercial and Financial Chronicle

Thursday, January 17, 1957

...

(320)

Continued
further

railroading

fundamental economics of

The

mass

a

as

transportation medium are so essentially sound that we
cannot help but be optimistic about the future.

of 1957 will see the fiscal horizons of
boating industry extend to the billion

dollar mark.

supporting

16,000,000 outboarding fans already
nation's biggest dollar volume

With
the

of

volume

dollar

in

sold

be

1957

for

a

than

150,000 boat trailers were sold last year for

which has

The trailer market,

$24,000,000.

when about

3,000

sold,

were

sees

a

substantial increase

More than 175,000 trailers

in volume dollar sales in 1957.

will be sold in 1957.

this

fuels

marine

in

dollars

which

certainly hope

we

never

we

press

estimated

an

$90,000,000

for

lubricants, plus additional millions of

An

service and maintenance

storage, anchorage,

President, Aluminum

entire

recent market research indicated that a single

Also,

sale by an Evinrude dealer resulted in addi¬
expenditures by the new motor owner of approxi¬

outboard

tional

works.

Before

The trend toward

1956

in

higher horsepower was the dominant
The largest single buyer segment,

38%, purchased motors of 12
To

keep

the

with the unprecedented consumer de¬
boating-minded buyer,

pace

Evinrude plant, in Milwaukee is engaged
million dollar plant expansion program.

in

our

wood

In

The

1956

of motors

outboard motor sales
in

now

use

increased

12

months

15

or

the

achieve

This

in

In 1947, for example, 87% of the motors sold were seven
horsepower or less. Today, more than 75% of all motors

sold

horsepower to 35 horsepower.

seven

are

SINCLAIR

HON.

WEEKS

balance

I

expect

1957

be

to

than

year

1956.

advancing

The

prospect for the next six months is bright. The
foreseeable trends indicate that good times for the Amercan people should continue through
the

entire

12

months

with

over-all

employment, income and production
higher than this year. In view of the
economy's present high pace, the
rate of

expansion may not be
now
but, barring grave

as

the

gency,

should set

economy,
new

as

so

States

emer¬

records.

ital

investment

is

at

a

high

Cap¬
level.

The Administration promotes
oppor¬
tunities for
individuals

throughout

our

Sinclair

Weeks

economic

system.
Feet-on-theoptimism is warranted by

ground
facts.

In

looking toward

jmind that

we

must,

however, keep in
must be earned

by wise planning, sound action and hard work.
ment, business, labor and

consumer

all have

a

Govern¬

responsi¬

bility in fostering healthy growth and in avoiding atti¬
tudes encouraging to an
inflationary boom or other
Such
this
tut

.

an

year

utilization

in

promote

gratifying rate.

In

further
my

Hew Year with confidence.




untapped

of the

light metal, and

substantially from

field

automobile,

Intensive
directed

to

truck-trailers

and

new

meanwhile

areas

containers

as

and

eral

is

con¬

host

a

of

equip¬
other

progress

opinion

we

at

a

can

moderate
enter

the

vigorous

a

aluminum-clad insulation for
now are

program

to

Ground

and

living,
was

prove

new

the

It also spon¬

Alcoa

useful

now

the

and

near

Idaho

future.

1932, the industry has dou¬

its number of

customers, and it
that nearly one million
customers
will
be
connected

announced

next

nine,

years,

all

things of aluminum for

fields
an

era

and in the future.

broken in 1956 for

a

major alumina plant

facilities

to

-

S. D. Whiteman

continue at

to.supply sufficient

ai

gas reserves

To meet the increasing demands, it is estimated tha
industry will spend nearly $19 billion between 195*

the

and

1965.

decade of

This is almost twice the amount
spent in tin
more than 20 times as great a

1946-1955, and

amount

in the decade immediately precedin]

spent

World War II.
The

%

reserves

estimated

to

of

natural

be in

excess

gas

in the United States

of 211

trillion

ar

cubic feet, an<

continued exploration and production must
go forwar<
at an unprecedented rate so that
natural gas consumer
be assured of

for years to
Faced

dependable, economical supply of

this

as

more

a

ga

come.

with

must unite

plying

FORECAST

the

expanded to mee

ments.

in

providing

demand, and production will have

The research

its

leading designers

years

superiority of

homes.

being told nationally to home builders.

commission

to create new

of better

program

Alcoa Wrap for household
use, and for gen¬

independent research to

findings

Columbia,
in

accelerated rate in order
.

being

highway

packaging and industrial applications.

sored

of

added

by 1965. •
Obviously everyone in the industry
going to be plenty busy in the next

can

During 1956 the company launched
to promote

industry in the United

that the number of customers will

the

effort

ventilating

packaging

gas

the

nearly 200 pounds

struction applications, oil field and
irrigation pipe, pole
barns and farm gates,
heating and

ment,

Company, Inc.

the natural

necessary to serve so many custom¬
ers.
Transmission and distribution
facilities will have to be improved and

and

.

relatively

of

WHITEMAN

Kansas-Nebraska Natural

estimated

few

automo¬

on

durable goods and electrical machin¬

merchandising
such

economy.

during each of the

individual usage increases

average

ery and equipment.

be

new

in aluminum's in¬

year to year on the new models.

consumer

as

and

Since
is

of

Similarly, the potential looms large in such established
as

with

a

District

bled

is

buses. Some 1957 passenger cars utilize

As the year closed,

.

approach will surely consolidate gains made

ana

creased

unions

employment costs, coupled with

the

the

are

promising outlets.

1957,

prosperity is not automatic. It

excesses.

virtually

Alcoa's many years of development work

Con¬
earn¬

the

negotiated three-

major

exceed 38 million

tive applications likewise is reflected

fields

Prosperity is widely shared.
fidence is strong.
People are
ing more and spending more.

in

the

1956 saw the connection
30-millionth customer
by the
gas utility industry. Natural gas'service is now provided in 45 states and
of

gaining
also

Alcoa

amazing growth of the industry has not yet sub¬

sided,

so

uses

1956

with

real challenge to all engaged in the
pro¬
transmission and distribution of natural
gas.

poses

duction,

residential construction.

fast

whole,

a

rapidly

future

The

few years ago, is

new

exceeding that

will

a

the

existing Gar¬

than 4%.

more

Gas

total

greater acceptance each month. Aluminum

years

the year closes is for continued
prog¬
in the aluminum
industry at a pace

The

Building construction outstripped
the transportation field for the sec¬
ond consecutive year as the largest market outlet for

ing, which Alcoa pioneered

better

a

slightly

com¬

1960.

Wilson

*

Metuchen

near

Within three

SAMUEL D.

Alcoa and for the industry. The metal curtain-wall build¬

Secretary of Commerce
On

W.

>

,

the company plans to start

casting plant

of

contracts

President,

a

I.

\

die

new

latter months

of the national

involving possible capital ex¬
penditures of about $600 million over
five-year period extending through

motor population has shown a steady
higher horsepower preference by shoppers.

outboard

a

no-strike

or

ress

of

ress

increase

of

The prospect

Confident of the future, Alcoa, in
1956, announced a program for prog¬

in the country to some 5,000,000.

ex¬

(Pa.)

promising field.

the

pig,

pacity of 962,000 tons.
the number

4,000-ton

a

higher prices for purchased materials and
services, were
reflected in an increase to 25 cents per pound for basic

under construction, to
installed annual ca¬

now
a

new

(N. J.) works, permitting
greatly expanded output

for this

will largely complete smelting

facilities

multi-

a

next

pany

mand by the country's leisure and

the

5,200-ton extrusion

a

facility will absorb all operations of the

of America

production

of

rolling facilities at the Davenport (la.)

whom it bargains. Added

own

Installation

Meanwhile,

Township, N. J.

750,000 tons, or about 7% above the
output for the previous year. During

horsepower.

or more

location.

another year-end,

primary aluminum rose during 1956
to an all-time high of approximately

sales.

works.

(Tenn.) works.

in Edison

supply of metal are expected to provide additional
impetus to the presently tremendous acceptance of alu¬

mately $625 for boat, accessories and equipment.
factor

and foil

and Alcoa

sales promotion in all markets, technical
through research and development, and a plen¬

Alcoa's

\

14,000-ton extrusion

a

Also due to be completed in 1957 are
expansions

of sheet

tiful

minum.

Alcoa,

(Calif.) works, and plans have been

same

construction

Company

the

trusion press now is being installed at the Cressona

Vigorous
advances

Ind.,

Vernon

at the

press

W. WILSON

sustaining power of the outboard boating

particularly with outboard motor manufac¬
seen clearly by Evinrude Motors when its
10-motor, 1956 line was bought out by June 1.
was

ordered

for

,

8,000-ton forging press has been put into operation

year,

industry,
turers,

Lafayette,

only increased 41%.
I.

-

consummated for the installation of

the like of
to experience again.,
ago

fees.
The vigorous

has

June

.

privately-owned mate for similar equipment

a

Alcoa's

at

our

ton mile have

in

power

at Lafayette is expected in 1957.

press

feeling that there cannot be any legitimate protest
against modest raises in freight rates.
Since 1939 the
general wholesale commodity price level has gone up
101% while during the same period rail revenues per

be

hydro-

own

result of construc¬

a

as

by the Air Force and operated by the company1

its

at

when the prices of almost everything

days

replace older

project.

produce

meanwhile

as

owned

I

these

partially

dam and hydro-electric facilities at

a new

to

expected

Alcoa

of continuity in the

accessories in

will

and

is

are

contracts!

will

Tenn., smelting operations.

disappointed and certainly somewhat
puzzled that the Interstate Commerce Commission saw
fit to allow the western railroads only a 5% increase
in freight rates while giving the Eastern roads the 7%
both groups asked for, the increase approved will just
about balance the higher wage costs awarded in the new
While

power from

project of the Power Authority of the

Chilhowee, Tenn., is nearing completion, and the project

year

a

.J;

longer operable after Alcoa's

no

Building of

on

unprecedented winter

ex¬

'

damage to Western Pacific and its subsidiaries

the

In

equipment, marine hardware and
will be close to $440,000,000.
to

storm

are

potlines at the

new

smelting works to utilize

tion of the St. Lawrence

Western

assurances

based

two

generating facility is shut down

am

similar

on

industry

on

York." They

New

facilities,

that industries and people buy are going steadily up it is

.sports

Added

also rests

is work

progress

(N. Y.)

of

State

increases

for

Point Comfort.' Both faculties

the St. Lawrence

rate, total sale Of boats, trailers, water

At the present

1957

during 1957 I

in

Massena

been

spiraling

more

years

outlook

the

to

from

Webb

J.

soaring each year since its first big year in 1946

been

three

inflation through the yearly

in

the industry anticipates record
boat sales based on a steady, annual
increase which began in 1946 with sales of 143,000 units.

more

have

long term agreements re¬
cently concluded with most of the Railroad Brother¬
hoods. Mention could also be made of some $4 million

year

More thai*

Also

high price as well as assuring

a

least

railroad

This

1956.

$112,000,000 in

at

and

Cain in dollar volume in 1956 and we
anticipate a hike in 1957 of at least
another 25%.
The sale of boats exceeded 300,000
for

which

150,000-?;

a

on an addi¬

pected to produce metal early in 1958.

optimistic.
I expect our gross revenues to exceed
F. B. Whitman
those for this year and I expect that
our net will be considerably higher.
This prediction again gets back to the factor of uninter¬
rupted industrial production which seems to be assured

topping last year's record of 600,000
units which retailed for $226,000,000.
Evinrude Motors showed
a -35%

units

cost

Pacific

thus

$280,000,000,

tional potline at

signed during the last two years in
the automobile and steel industries

As

its all-time record sales of 1956.
Approximately
700,000
outboard

pass

will

contracts

plant near Evansville, Ind., and

ton smelting

long-term

The

Construction meanwhile was started on

works.

provided. That high price can only
be justified because of the assurance
of uninterrupted production.

participation recreation and thou¬
sands more joining the fun annually,
the industry will substantially sur¬

motors

for
°f
for 1957 to

should be

year

strikes.

and

labor

year

outboard

the

coming

putes

Evinrude Motors

Division Manager,
new

things, "slacking off" I, for one, am looking
be slightly better.
I
base this belief largely on the
relatively free from major labor dis¬

Corporation

Vice-President, Outboard Marine

This

business

fact that the

WEBB

J.

W.

during the year included two additional potlines at Rock¬
dale, Texas, and additional pots at the Wenatchee (Wash.)

Although the year 1956 has been a very good one
generally and there has been some talk

power.

brought into production

smelting facilities

Alcoa

New

Railroad Co.

President, Western Pacific

railroad progress and earning

improvement in

construction is underway.

at Point Comfort, Texas,, and

WHITMAN

B.

FREDERIC

from page 122

challenge,

never

than

There

is

the

natural

gas

industr;

before in the serious matter of
sup

25%
good

of

the

reason

producers, pipeliners and

nation's
to

be

energy

confident

require
that

distributors will resolve

differences existing among them

now

and

will pull

gether for the benefit, not only of the
natural
try, but of the entire nation. *

.

Continued

on

gas

th
an;

to

indus

page

126

Volume

185

'Number 5604

The Commercial and Financial Chronicle

Continued'from page"7




this attractive

In

•

Ready

An

access

to a variety

climate suitable

to

For complete details write:

Coast Line

Wilmington,

-

raw

materials

Reasonable operating costs

A

R. P. JOBB, Asst. Vice Pres
Atlantic

of

adequate labor supply

•

•

will find

you

advantages including

many

•

area

N. C.

R.R.

year-round operations

1^6

(322)

;

The Commercial

,

Continued

from

J.

;

124

page

!

C.

c

j

t

:

customers'

WILSON

increaseu,

growing investments

rs

A 3.

tmued growth,*

We

The

at

prospects

Haloid

for

Company

optimistic about the.
We are primarily

are

industry fh

our

] of

'

*
.

;
*

decisions
facts.

be

can

become,
complex it ,is-l of

than

ever

and

more

found' its

has

trend
nd

C.

more

Wilson

t

important

for

reasons

business

this

opinion:

-

the

increase

in

effective

demand

-

farm

-

v 1 -V

.

*

kets^ut tneyy.are

y

yl to .becnme

fUnrr'

fvbtovvf

anq

iney inxena. *

hven more eompetitivo in

machinery
rachinerv'pEbduaioWilSf^tfced^^VBar
WereA is

:

-

'

^itf,beyond..p'; <^3

another ..danger:

in

in-.:

-

iey^sl^^When'

'

larger

>

with

produced,
'

.

'

dollar

"

'

in:-

*

against " a

greatest toedge

v y

somewhat

a

improvement

percentage

'

deep depression

is

-

the

•

potentinl;.:pump-primin|^^^jpower^of the- municipalities,:
the-states(-;and- the Federal Government.

sales.

If all the-pub-

,

Whitmorc

-

on

-

.

-

•

•-

the

part

of

individual

members

of

the

society

puts

a

firm foundation under the economy.

ing

•

construction.

short

1955

of

and

'

(2)

There

is
industrialization.

expanding

an

world-wide

burst

of

(4) This changing technology requires ever increasing
expenditures for new and improved plant and equipment.

(5)

The

state'of

the

continuation, perhaps

world

even

makes

almost

necessary

increase, in governmental

an

expenditures.

■

good

a

business,, activity

will

with

demand

and

on

Relatively high interest

years.;

between savings

closed, probably involving some topping ;
boom conditions that have prevailed in recent

off of the
years.

\

•

The

a***;

is

strong

growth

trend

in

the

of

use

electricity

is '

closer to that of the long-term trend than to the
higher
trend of more recent
years. There remains some unfilled
demand

for

'

■'

;

.

expected to continue in 1957, though probably at a rate

.

JX..

.•

:

for space heating and gas is still in acompetitive price situation in> this area.- Unfor-.

tunately,

gas

in

most

of that demand

continue

other

apt to continue until tne gap

are

strong

Therefore, in summary we look forward to
industry for these two reasons:

field in our

(1) General
high level.: v

comparison
rates

(3) Technology is changing at .a revolutionary rate
through enormously increased expenditures for research
and development.

of

our

service

own

awaits increase

in

fulfillment

area

1
'

'TSST-.

pipeline supply.

—;

No remarks about the future would be
complete with-y
recognition of the war- threat and the fact thai a

a

'v-

% ■

out

V'1..
■

(2) Industry and government increasingly requires the
kind of goods which we produce and
sell.
•
E.

H.

now

industrial

showing

economic

a

trend

growth

at

the

of

ernmental

units

state

and

in

"Top

II

of

South"

the

ascending

and

is

planning

and the coordinated

gov¬

The

South's

alignment

-

ing

1956.

The

ment, higher
expanded
are

ity

increased

income,

and

employ¬

of

and

new

facilities

this

resulting in

an

"Top of the South."!

the

Vepco

portion

and

is

a

be
E.

between
^

H.

of

We

of

part

South's

Will

in

the

we

economic

as

a

thai;

company

which includes
northeastern
North

area,

southeastern

West

advantages

many

axiom

to

Virginia,

of

area

was

almost

pended

for

in

1956.

new

$70,000,000,

ages more than

an

share the bene¬

expansion.

largest

generating

expenditures
all-time

are

record
per

budget for

portion

being

facilities.
expected

for

1956

In

to

ex¬

1957,

amount

Vepco, that

aver¬

week,

with

an

under

and

capability

additional

construction.

tricity is provided
industrial

tuial

gas

to

at

facilities

present

640,000
This
our

customers.




through

Capac-.-

the

first

to

soon

'S '

"

its

products

raw

materials,
increasing its

for
steel

products

are

to

is

1,361,900

kilowatts

dependable

kilowatts,

authorized

supply

of

and

elec¬

630,000 residential, commercial
In

will

increase

very

future years with in¬
population
and
a
rising

ample

addition,

living.

Vepco provides

33,000 residential,

commercial

There

materials

raw

limestone—to take
The

costing around $350

generate

for

$1

capacity.

ore,
of

care

to

coal
Jriarleston

this

confronting
therefore, one

fast

pated increase in demand.

necessary

appears

—

the

of

per

steel

annual

This

is

a

enough

of

to

steel

X-

Wood

expanding
this

meet

LET'S LOOK AT THE BRIGHTER SIDE

its

antici¬

With integrated steel capacity

annual

ton

of

industry to
sales,

much

invest

about

$3

at

investment

industry in general has

cans

to

operating

when

even

larger

Many thousands of Ameri¬

production, it is

required by almost any other
industry.
The

R.

problem

than

noted

for

wage

increases

result in

It

has

left

it

in

position

a

its

on

changes in

our

be required.

the American Cancer
or

fast

write-offs

have expired.

granted

However, most

f{>i *
V

■

\

.

during the Korean crisis

This reduces the amount of cash
available

The big problem

steelmaking facilities for

the national

will

defense
for

facing the industry is whether it will

possible for it to meet the

which

be

and

existing

come

to

k

Society

"Cancer" in

care

local Post Office.

American Cancer

Re¬

defense.

be

write

of your

not

tax laws with regard to depreciation

policies have been helpful in this
respect.
the

'

more

how to head off
cancer, call

internally generated

cash for much of the funds
which will

of

will

cancer

More and

profits that will encourage further investment.

must, therefore, rely heavily

cent

which

cured of

people are going to their
doctors in time...To learn

is

•

been

are

every year.

low profit
margin for many years, and its present pricecost ratio
resulting from the recent round of price and

for additional hew

expansion of facilities is
keeping
with the economic
progress of the area served. The

generating

and

steam

construction

the

$1% million

yVepco's growth
pace

The

$50,000,000,

total construction

for

the steel
industry is,
isteelmaking capacity

de¬

Vepco's belief in future
progress, the people and the
company's service area are illustrated
by the fact that
the company's investment
passed the one-half billion
dollar mark

products

and

y

believe

Virginia,

of

promoting the

the

Some

demand.

~v,

velopment and assisting communities
fits

necessity

standard of

communities progress, can

greater

Carolina

demand

availability of

creasing

economy

Throughout its operating

progress.

least

at

iJBip SI ;STt ||9J

'pbj oiSbii

industry's present prob¬

not

the

steel

a

our

assured

although it is too

XjL9A9

op ino

substantially in

Company is gratified
part, together with other progressive groups,
in planning the present and future economic
growth at
as

the

move¬

The Virginia Electric and Power

only

seem

pjlip

si op

hard to get and are
expected to
remain tight several
years to come,
and
all
predictions for the future
indicate that the demand for all
basic

impression dur¬

balanced
almost
equally
agriculture and industry.

the

Company

with confidence.

predict beyond
generally believed that the chances are
high operating rate will

a

capacity.

"Top of the South" is no
longer
primarily
an
agricultural
area, but now a region where diver¬

to have

•••qjFop ssa[paau B SI ipF^pi^a
-UBO

Steel

industry enters 1957

steel

is

but

economic trend

indicative

is

tnat

good

The

The

sification

ex¬

#'it

operations

nor

manufacturing

very

ment.

present

now

marked

a

»

Six months
and,
this period, it is

lem

expansion and diver¬
new

all

continue for the balance of the
year.

objective.

sification in this

.

nullify

President, Alan Wood

,■*>»**

with

has made

could

•poAPS aq pjnooXiiriu sr ?,vrn)

^

industrial and civic
groups.
A
strong and healthy economic climate
is the desired

action"

pectation::.

4"

This

course.

effort

years

local

close

"police

HARLESTON R. WOOD

result of the

during the post World War
teamwork

or

The steel

definite

very
is the

war

WILL

President, Virginia Electric, and Power Company
The

to

t,

lie -works programs now- Oii- the^ drafting boards are,
High interest'rates resulting from
pushed-through immediately nothing will be left Jo off-)
demand
for
money
- putstrippmg
set^a-decline. in business.
:'
•
"" i"
savings is having Its effect on hous- y
government projects ares needed
In
this field
1957 - promises to fall,
urgently^ .bqt others- cap and should be postponed.- ,4
1956 but may still be a fair year in

■

im¬

goods

d

"

provement, is-indicated .'for J95?;in

are
•

J7'
run

.

"tongas ahJhe?same":time;-

in J

,

more

for

the

...

'.i •XX

"'•-■

strikes, ,shut-downs/* for-' control; of "- at- record
a- /recession"^
finished products; inventory, and the y com<^ e^-and- T stifl believe in, the,'**
:■$*><
closing of /the 7 Minneapolrs-Moline.-,. eycles:..of life—government ;an;d industryvwill have

Charles

(1) The increase in population and perhaps
portant

*is^hQt r4te

,

with responsi¬

generally
its present high level. There

1957 will remain upon

several

that

rpi
im.pi ovement - in.

-

liftw:

units-

believe

t

arm

the

this need.
we

1

S'

> more

control

Furthermore,

we are. in an, ini'fabelieve this
AnH
t:

tha?wors^eJpe'

•

bottom;/;. Paymehtsdunder the

gradual

bility be helped to maintain effective
over complex
operations toy
receiving ' better,
more
complete,
timely information. Haloid's products help meet

J.

to

dV-jE 1

>biem
surplus problem;

»:

necessity

greater

that people

inclined

f,

us

con,

.

upon

As the whole economy and

ani

pointing to

tratm;s;of inflation are the ones who
watii/us, of its dangers—Jhe- mtinici- X

.

-

...

'T

■i

purse strings Jell

signs

otoa healthy .economy*:

meneriod

7

that good

so

based

made

'J society

linuation

are; many

j^palr/i^e^ ah^Federal Governments.: v
sharply,:";!'
Farm- prices and farm income have been declining;>■» toOnp|>yv'ey;;i^
short; supply,. ancK-.
^
i.-matoriiil
hsvp -.hppn. ■Sfdvfl'nf'-;
for the past five years; In :1936 there 4s- indication that1: "TJV^
7

industry

people

more

tha^ although tohere-

l1ie'•

-

President,' Iowa-Illinois

-r

,

"... the hands of

t

;Those who handle governmental

con-

*v

and
this
government for greater Speed and A
economy in communications, in get ting more accurate information into
need

v'.« ;

x;0jn^

-

.

1957

.

be-

ours

products and those of
companies selling similar ones
intended to meet the ever in¬

creasing

»•*',

*

pendable electricity.

cause - our
are

* V;'

PIK<nmp„c. hpre
customers^here ;atat

i s

seive

*

/.other

".•

V \

the Virgi p•

continue to

a

favorable broeress and
t

P_g

Thursday, January 17,

President^ Webb, & vKnappy Inc.

optimistic about

are

■the outlook for this field of

\-V

V» V-*,

^

(

....

WILLIAM-ZECKENDORF

••

-Top of the South', with economical,- adequate and do-•

in the business of making equipment and supplies to
produce rapidly and inexpensively the copies of existing

We

will

pany

1957.

information.

thV
of.the

In the expectation

President, The Haloid Company

the Tidewater area. These
requirements have : necessitated

customers in

industrial

and

':

ar^d Financial Chronicle

conditions.

for

-

greater capacity

required in the immediate future for the

civilian

capacity

barring

need

any

economy.
seems

A

high

assured

for

major downturn in

operating
some

rate

time

to

general business

;; '■»
T--,

--.V

,

Society

f®

j

m Climber >5604 +

mm*

r-

,

•;,.

(323)

Continued fr&m page 1 ?+;y+

Slate tff Traill

he

is

lTi

-.

of'apparel, floor covering*, ~

ie

Ry. 5i/2% Debentures
investment

.An

Bank Stocks

matiaged by Morgan Stanley
& Co. is offering today (Jan. 17)
cate

expected

excellent

earnings of the leading -New York
made excellent reading for the shareThis writer's estimateof>a 20%: increase over 1955 was

City-'banks for 1956 have

purchases of new and used pas-er
cars
declined 'somewhat'

holders.
somewhat .optimistic, but .the- reason for this was that there were
sdme extraordinary charges made against current earnings. One
i The total
dollar volume^ of reot. the large banks charged against earnings a portion of an exUf trade irrthe period ended on * ?+Hsive,air conditioning job; another had heavy expense connected
Wednesday of last week was tin- + witftmqving its office to temporary quarters while its new buildhanged to 4% higher than'a;year :K
being erected* and a -ihird inoved at considerable expense
go
accordirig to estimates by;T "j;0
new' location; But total dollar earnings for 1956 were $236,)un & Bradstreet, Inc.
Regional
495,000, up 17% from $202,018,000 in 19oo. A more impressive
stimates varied from the com/snowing was the inci-ease over, the decade, from $132,307,000, or
arable 1956 levels by the follow- - a betterment of some 78%. :+/.+>
^
dealers^ inventories: climbed
Igrhtly.
/
1,
'
fd

-

i>g

;

■

percentages: New England —1\
The extremes of growth in this ten-year period were 48%
-j-3; Middle Atlantic —4 to 0; * and 17l%.rThe latter, for-Bank of New York, is easily explained

North Central —5 to
Vest North
Central,; South

in;,-'

by

+ 1; "

last

At-

Mountain

nd
pe

Central

South

Vest

s,

-f2

+6, to

to

*

..assets

.

As

urniture stores reported a noticesd

in

decline

ble

•

total

sales. ? The

was
nchahged, and.equalled that of a,

While interest in floor
sustained at a high
uvel the past week, the call for
ago.

ear

>

overings

M

draperies

*

Apparel stores reported
call

treased

for.

oats,

.dresses

Vhilie

volume

osmetics
ales

women's

and

k

/

of

There Was.

a

+,

to

most of

over

that the

*

on

the

renewed

old

rates.

banks

get

as

loans

and

more

But

more

the books when interest rates

the

more

"ruling.

now

The buying bf"fresh meat, pouland fresh produce
decreased

The debentures
at

the

are

redeemable

option of the company at
to
and
including Jan. 1/

106%

being

made

on

behalf

of

The

funds

if

the

interest

cost of Such

Baltimore &

Ohio RR. Co. which

funds is less than 5^%.

will

the

annual

receive

result of
fer by

a

debentures

a

as

proposed exchange of¬

the -Western Maryland Ry.

Co.
'-

to offer holders of its non-callable

first

-

preferred

(par

stock

A semi¬

sinking fund commencing:,
July 1, 1957 is calculated i&

retire

100%

turity.

The Western Maryland proposes

7%

on

deemable
of the

of the

The

issue

debentures

through

the

sinking fund

est payment date at

by ma¬
are

re¬

operation
inters

on any

are less,

rising

the

of

cost

carrying

Jan. 1, 1962 and at declining pre-,
the privilege of ex¬
miums thereafter.
their shares
of such
stock for 25-year 5 Vz %
deben¬
tures and 5% first preferred stock
With Cruttenden, Podesta
(par value $30) at the rate of

value

$100)

changing

principal amount of deben¬
plus one share of 5% first
preferred stock for each share of

(Special to The Financial Chronicle)

$100

tures

7%

first

preferred
stock
exchange.

sur¬

rendered for

The
ficial

Baltimore
owner

of

&

Ohio,

ern

Colo —A. J. Frank
Schepp
has
become
associated
with Cruttenden, Podesta & Co.,
First National Bank Building. He
was formerly with the SEC.

bene¬

167,127 shares, or

94.2%, of the outstanding 7% first
preferred stock Of Western Mary¬
land, has agreed to accept the ex¬
change offer.
A

DENVER,

special meeting of the West¬
Maryland's stockholders has

been called for Feb. 6, 1957 to au¬

Walston Adds
(Special to The Financial Chronicle)

DENVER, Colo —John L. Ken¬
nedy has been added to the staff
of Walston & Co.,

Center.

He

was

Inc., Mile High
formerly with

Mountain States Securities Co.

banks

in, proportion to
Thus

deposits

total

f

is

Mew

York- banks (and/it may be added, this applies
to thellarger banks in Boston and Philadelphia).
Also

V-^It^^pbable that this lower proportion of interest-bearing

e^s
hanged.
There was a moderate
ise in interest in canned
goods • *
rozen foods and baked
goods, *

dcposits oh the\par t/of the large New York-banks versus the banks
"J

v

.

*■'<*■■

.

-.c

.

,,

ih\the interior, has been a factor m-the somewhat better proporx+Mifeate earhidjl" of the New York institutions. The following tablethe
gives the showing of this group of banks from operations for the

Buying activity increased in
rcajor wholesale- centers The past
veek, as numerous trade shows
Emulated

interest

in.

past three calendar years:

x

.

.

furniture,
The to-v

^

Operating Earnings

.

housewares and apparel.

|al v dollar
rade

v volume*

expanded

yvholesale *

of

noticeably

ooderateiy exceeded

that

omparable 1956 week.

Department

*

-

storev sales

on

a

I

or

the

no

ended Jan. 5, 1957,
change from the like

>enod last year.

'

_

Guaranty ,Txust (g)—

Irving Trust.

'

X&nmr'A

trade

.

in

New

(b)

*-<•

Jork City last

week was aided by
raJder'-than-normal temperatures

Public;

*

a

year

according

ago,
•

.

;

(d) Adjusted

According

to

the

(4)

4

Re-

e

receding

last yean

week Dec.

In

29, .1956,X

of

*11'%

for

on

on

pr# forma

Dec., 29,

y

an:

will

pay

Chase Manhattan:

^

*

a

U»%

■.

account

1

w.

Wi>«

_

.i




'

195?.

February,

in

ot

Exchange:

w»,

backed

Ltd., in the development of
refining and marketing of
petroleum products.
Exploration

Oil

shares;

1954 and 1955 not comparable with
Via rights.
-

reserves,

This

issue of new jstoek

team

of

experts

has,

in

the short

of three years, built Anglo Ameri¬
can Exploration Ltd. into one of Canada's
largest, fully integrated, independent oil
companies
a team working today for
a
more prosperous
Canada of tomorrow.

NATIONAL

y

of INDIA,
+X Bankers

BANK

...

LIMITED

to' the Government la

-Kenya Gohmy and Uganda
Office: 26 Bishopsgate,
X'
/London, E. C. 2.
West /End ( London )
Branch I
13, St. Jameses Square, ?• W. 1.
Branches An India; Pakistan, Ceylon,
Head

BANKSX

C

JUKIO fUNERKJIN

rBurma; .Aden, Kenya, Tanganyika,
i
, Ugahda.
Zanailjan and SomallX ; - j land ' Protectorate.

EXPLORATION

■■

■

-

IMembers

Stock Exchange^.

v

Amerfcan -Stock Exchange

BFOAIMVAY,' NEW' YORK

120

"

'

-

-Telephone: *BArclay/7-5500 V"*
Be1.l

:Teletype-^-NY

lri248-49 -.

,

{L. -'A. "Glbbs,. Manager- Tradi'ig Dept.:

P;

.

..

f'

Specialisfs tn Banfr Stocks

' ^

Capital'——£2^51,562
—--£3,104,687

The; Bank-conducts, every description of
banking and -exchange business.
\T
Trusteeships and Executorships

t,.
■
■

-v.

v

-

LTD.

Capital--—£4,562,506

Reserve-r Fund

.

....

Authorized

Pald^U.ii

5, N. Y-

-

w

a^w^e:re was ,one shopping
Christmas, while- fast' year

pt»ne.

dividend

stock

COMPARISON

r

Members New-York

v

there

smiling and efficient Purity 99 Dealer
up by hundreds of men and
women
working for Anglo American
is

1954 and 1953- on basis of 13,000,000

Laird,? Bissett & Meeds^

-

index ^

..

The

l:{,()00,000 shares.
Chemical Corn

INDUSTRY/

GROWING

*

.

-

T,

FOR A LARGE AND

Empire-will pay a-4% stock dividend in January, 105?.

CITY

'

w

5.46

stock dividend in l!)55.

13 NEW YORK

a rise of 6% above that
corresponding period t'
inx
%
*4

4.99

FRONT-MAN"

in 1955.

10% stock dividend

OUR AmtiALi.

v

i

forded

^

5.49

-basis, reflecting mergers: .Bankers-'

was .reg-

195^, The

4.90

space

the'

period Jah;

3.59
24.74

split.

-

iq-c^' For the
06 t0

3.22
21.67

'■

^

increase

*<!>

(j)

^crease of 30% was reported: For
e four weeks ending XJan. >5,
ah

(h)

1956

no change from The:

of

.

195(1

department

tore sales in
New York City for
he
weekly period ended Jani 5,.

^7, period
showed

ii

Adjusted for 5-for-l split.

tgXS^aranty

-

;

to

.

Federal

index,

-on

(e)-Adjusted for II 1/9%

..

,-

eive; Board's

F+l#l

IVliirr^attan-Chase.

(c> AdjOsted for 'J-for-1

r,
the usual, promotion and
'learance sales, which lifted sales
'bout
2% above the comparable1"

observers.

2.56

Bank Farmers Trust Co.

(a) Includes City

volume

3.78

2.20

4.68

New

hove that of 1955.

Retail

3.23

1.80

4.41

crease of 9% was recorded. For
,J® Period Jan. 1, 1956 to Dec. 29,
|+6, a gain of 4% was registered

'

4.70

2.94
_

}Q _ttle
y55,

5.20

4.06

16.01

.

♦

16.17

4.25

2.81

an increase
\?7r/r was reported. For the four
^e.eks ended Jan.' 5, i957, an in¬

1

14.14

"

In the preceding

vf$* Dee. 29, 1956^

radfe

3.87

week

howed

evel

3.78

3.62

3.58

Empire Trust (h)
,

26.10

3.53

3.38

—

.

.

$5.02

19.16

11.76

.

•;

/ $4.73

3.26

*»

0

as taken from
Federal Reserve Board's index

jountry-wide basis
ie

.

Chase Manhattan (i b)

the

:

16.62

3.18

Bank Of.-NeSw York (c)__.—

:

...

1956

1*»55

,

$4.24

I__

X,;Bankers- Trust (b)

_

'

.

■

1954

and

of

,.

\

XXs'y'.;

also

undertaken

.

102% through.

aie:frequently
ft for a given period of time and do not carry
interest. This isjoften the case where foreign deposits are involved,

;.

-

in

Commerce

pariilteeticaily| care.should be used. in the case of the New York
+aiik$ not to consider t at 'Time" deposits are the same as intercstbearing de|jbsife. ~Ldrge amounts of the big banks' deposit volume

;,

ry

authoriza¬

Interstate

important ones in other centers is the fact

savings deposits that they, carry

the

con¬

were

total deposits than is the case with banks in the hinterland.

felF

volume

the

at

are

already

: \One factor* that has -favored the large.New York City

;

withinterest-Tates

shirts

course

be

and werh put

^bsta^iab-gain inv";d©wer^fqr

but

of

are

This is true particularly where a bank carries a sizable
of term loans, for these run for, let us say, five to ten

urchases of' men's. overcoats add / equally
uifs, but interest in neckwear,

gain-last week,

and

siderably lowei* than those

and

'

ats; aird AvMte; dress

earlier.

and ^have

years,

cloth*

elow'that of the preceding week.

year

get# little benefit from the increase, ds loans

books

volume

.

expanded considerably,
fashion accessories de-

lined somewhat.

a

benefit.

sportswear.

"toiibtrjes

in

basis than

mature

in-

an

the

on

fell moder-

tely.

favorable

more

further

a

some time

was

and

nens

a

But thisrgeneral performance was, as indicated, to be ex¬
pected, as, more and more, the banks are deriving the fuller bene-,
fit of higher rates. :When an interest rate is increased a bank for

uying^of major appliances

-

down to

were

result, Bank of New- York's 1956 operating earnings
were 36% higher than in
1955, also the best showing of the New
York City
b^nks in the period.
*C

Although volume in bedding,
limbed considerably; last
week,

f-

obligations over $14,000,000 greater; and loans and discounts about
$b,000,000 better. Book value was about 4% higher than a year
As cash increased by $16,000,000 it is obvious that risk

--earlier.

+6

+10%.

Tu56.

* •

Coast +3 to
h7; East South Central +1 to +5;>
and .Pacific

antic,
ie

examination of the bank's statement of condition for Dec. 31,
Deposits were $35,000,000 higher; United States Government

an

first preferred "stock

the

$16,712,700 of Western Maryland 1962 and thereafter at declining,
Ry. Co. 25-year 5V2% debentures prices, except that na such Te-"
due Jan. 1, 1982 at 100% and ac¬ demption shall be effected:prier
crued
interest.
The offering
is to Jan. 1, 1967 with borrowed;

.

Pf

5%

subject to the

of

Commission.

syndi¬

banking

also

tion

first preferred

Issuance of the debentures

the

and

is

major appliances continued at
level of the preceding week. ~

rd

and'the 5%

stock.

-I

"

By'ARlllUR B^WAliLACE-

jying

tures

Offer Western Md.
"-V

-

Lnd

■

thorize the issuance of the deben¬

Morgan Stanley Group

.V

12T

PRODUCERS

•

REFINERS

.

MARKETERS

Financial Chronicle

The Commercial and

123

...

Thursday, January. 17, 1^57

.

(324)

Volui

^INDICATES

ADDITIONS

SINCE

Securities

in

■

Minneapolis, Minn.
of common stock (par one
cent). Price—At market. Proceeds — For investment.
Underwriter—Fund Corp., 523 Marquette Ave., Minne¬
Allied Resources Fund, Inc.,

Dec. 14 filed 400,000 shares

apolis, Minn.
! Amalgamated

Ltd.

Minerals,

(letter of notification) 3,000,000 shares of com¬
(par five cents). Price—10 cents per share.
Proceeds—For mining expenses and development of oil
properties. Office — 901 Sherman St., Denver, Colo.
Nov. 23

mon

stock

Underwriter—Lackner

&

Co., Denver, Cola.

^ American Brake Shoe Co. (1730)
10 filed $12,000,000 sinking fund debentures due
Feb. 1, 1982. Price—To be supplied by amendment. Proceeds^-For expansion and improvement program.
Un¬
derwriter—The First Boston Corp., New York.
Jan.

Killeen, Texas

American Federal Finance Corpv

Sept 5 filed 40,080 shares of class B common stock (par
$5) and 400,000 shares of preferred- stock (par $5) to be
offered in units of 10 preferred shares and one common
share. Price—$55 per unit. Proceeds—To purchase used
car paper and to extend the company's operations into
the field of new car financing. Underwriter—None. J. J.
Fain is President.
Machine &

American

Jan. 4 filed

Foundry Co.

vertible subordinated debentures due Feb. 1, 1977 to be
offered for subscription by common

stockholders of rec¬

1957 at the rate of one $100 debenture for
each 25 shares of common stock held; rights to expire

ord Jan. 22,

Warrants will be mailed on Jan.> 23,
1957. Price—To be supplied by amendment. Proceeds—
To provide working capital for expanding sales and
rentals. Underwriter—Eastman Dillon, Union Securities
on

&

Feb.

1957.

7,

Co., New York.

Co., Cleveland, O.
Dec. 18 filed 40,000 shares of $1.20 cumulative convert¬
ible preferred stock, 1856 series. Price—At par ($20 per
share). Proceeds — For working capital and to reduce
bank loans.
Underwriter
Fulton, Reid & Co., Inc.,
—

[Registration also covers 30,400 shares of
common stock
(par $1) already issued and outstanding
and being registered for the purpose of offering the pur¬
chasers thereof an opportunity to rescind their purchases
of such shares.]
Offering—Expected this week.

to its affiliates for money borrowed for working
capital. Underwriters—Hallowell, Sulzberger & Co. and
Charles A. Taggart & Co., Inc., both of Philadelphia, Pa.,
pany

common

sidiary,
reduce

stock of Michigan Consolidated Gas Co., a sub¬

providing the latter with funds to repay or
$25,000,000 of bank loan& Underwriter—None.

^Approved Fire Equipment Co., Inc.
7 (letter of notification) 245,000 shares of capital
stock (par one cent).
Price—$1 per share. Proceeds—
For expansion and working capital.
Business—Manu¬
factures emergency rescue apparatus.
Office — Austin
Boulevard and Audubon Street, Island Park, L. I., N. Y.
Jan.

Underwriter—None.
•

Atmco

Inc.
Aug. 24 filed 300,000 shares of common stock. Price—At
Automation Development Mutual Fund,
Proceeds—For

market.

&

H.

stock.

of

Associates

stock

for

each

share

This offer will expire on Feb. 21.

of

Capitol

Underwriter—

None.

Atlantic
Dec.

12

(1/23)

$10,000,000

of first mortgage bonds due
1937. Proceeds—To repay bank loans and for construc¬
tion program. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp. and Drexel & Co. (jointly);
Eastman Dillon, Union Securities & Co, and
Smith, Bar¬
ney & Co. (jointly); Blair & Co. Incorporated; White,
Weld

& Co.

and

Shields & Co.

(jointly); Lehman Bro-

(letter of notification) 240,000 shares of com¬
$1). Price—$1.25 per share. Proceeds—
partial payment for plant site; partial payment of
obligation to Memorial Inc. and for working capital.
Office-4718 W. 18th St., Houston, Tex.
UnderwriterBenjamin & Co., Houston, Tex.
For

Blue Biird Mines of Pinal
Jan.

County
(letter of notification) 50,000 shares of ,common

4

stock

(including an offering of rescission for 6,500
Price—At par ($1 per share). Proceeds—For
mining expenses. Office—409 Main St., Superior, Ariz.
shares).

Underwriter—None.
•

Drilling Co.,

Inc.

Proceeds

—

For drilling oil and gas wells.

White, Weld & Co.,
Rowles, Winston & Co., Houston, Tex.

New

—

York;

and

Drilling Co., Inc. (l/3d)
100,000 shares of common stock (par $2).
supplied by amendment. Proceeds—To
selling stockholders. Underwriters—White, Weld & Co.,
New York; and Rowles, Winston & Co., Houston, Tex.
—Expected today (Jan. 10).
•

Brewster-Bartle

Dec. 21 filed
Price

To

—

be

.

• Brunswick-Balke-Coflender
Jan.

filed

11

Co.

(1/31)

$5,888^800 of 15-year convertible subordi¬

nated debentures due Feb.

1, 1972, to be offered for sub¬
stockholders of record Jan. 30,
$100 debenture for each nine
shares of stock held; rights to expire on Feb. 11, 1957.
1957

by

the

at

common

rate

of

one

by amendment.

Underwriters

program.

—

Proceeds — For
Lehman Brothers

Goldman, Sachs & Co., both of New York.
Shore

Mines, Ltd., Toronto* Canada
July 26 filed 600,000 shares of capital stock, of which
500,000 shares ate to be offered publicly, and 100,000
shares to promoters. Price—At par ($1 per share). Pro¬
ceeds

For

—

capital

and

equipment, exploration, drilling, working

Other

writer—To be
•

general

named

corporate

purposes.

Under¬

later.

Buzzards

Bay Gas Co.
Dec. 27 (letter of notification) 6,141 shares of 6%
prior
preferred stock to be offered first to stockholders of
17, 1956. Price—-At

par

($25 per share). Pro¬

ceeds—To pay amount of unsecured notes due
April 30,
1957 and the balance for other
corporate purposes. Office

25

Iyanough Road, Hyannis, Masg.
Coffin & Burr, Inc., Boston, Mass.

—

Underwriter

—

★ Carrier Corp., Syracuse, N. Y.
Jan.

16 filed

Feb.

into

1982

1,

common

(2/5)
$18,000,000 of subordinated debentures due
(convertible

to and including Feb. 1, 1967
Price—To be supplied by amend¬

stock).

Proceeds—For expansion

program.

Underwriters

Centers Corp., Philadelphia, Pa.
July 30 filed $8,000,000 of 5V2% sinking fund debentures
due Aug. 1, 1971, and 1,600,000 shares of
common stock
(par one cent); subsequently amended to
$4,500,000 of

debentures.

Price

Proceeds

About

—

To

be

supplied

by

amendment.

$4,100,000

will be used to acquire
shopping center sites and a Penn Fruit super¬
market adjacent to one of them; the balance will be
used
to develop
shopping centers at the seven sites and to
—

seven

acquire

and

develop

additional

sites

for

related

real

estate

Philadelphia




San Francisco
Private If'ires

to

all

offices

Chicago

Cleveland

Fl

'Nov.

-■

At

activities, and for general corporate
purposes.
Underwriter
Blair & Co. Incorporated^
Philadelphia
and New York. Latter has
agreed to purchase an addi¬
tional 300,000 common shares and reoffer
them to per¬
sons selected
by it at $1.10. per share.
—

Offering—Date

indefinite.

=

■

.

■•••

*

r,

V.'

....

Unde
Fl
Dec.

debei
mon
ers

v..

^ Commonwealth Investment Corp., Sioux Falls, la,
14 filed 499,400 shares of common stock (par $1),
Price—$4 per share. Proceeds—For working capital to

•

Proc<

poses

Fl

Underwriter

Nov.

.

cents

Continental

Copper & Steel Industries, Inc.
170,297 shares of commoif stock (par $2)

filed

18

being offered for subscription by common stockholders at
10 shares held as o£

the rate ot one new' share for each

Jan. 10, 1957; subscription warrants to expire on Jan. 28,
1957.
Price—$11.50 per share. Proceeds—For additions
and

improvements;

and

working

lor

capital.

Under¬

&

and

Cooperative Grange League Federation
Dec.

Exchange, Inc.
21 filed $1,200,000 of 4%

due

Jan.

subordinated debentures

1, 1966; 10,000 shares of 4% cumulative pre¬
ferred stock (par $100) and 150,000 shares of common
stock (par $5). Price—At principal amount or par value,
Proceeds—For working capital.
Underwriter—N one.
•

filed

9

bentures

Office—Ithaca, N. Y.

(1/30)

Dayton Rubber Co.

Jan.

$5,000,000 of convertible

due Jan.

1, 1972.

Proceeds

—

Price

subordinated de¬

To be supplied by
For working capital. Under¬
—

Brothers, New York.

Diversified Oil & Mining Corp*, Denver, Colo.
Aug. 29 filed 2,500,000 shares of 6% convertible noncumulative preferred stock, first series (par $1), and
warrants to purchase 500,000 shares of cohimon stock
(par 10 cemts) to be offered for subscription initially by
common Stockholders in units of 25 preferred shares and
a warrant to purchase five common shares. Price—$25.50
per unit (each warrant will entitle the holder to pur¬
chase one common share at any time prior to Dec. 31,
1957 at $2 per share). Proceeds—To repay mortgages, to
$1,312,500 of five-year 6% sinking fund debentures, and
for further acquisitions and working capital.
Under¬
writer—To be named by amendment.

Douglas Corp.* Fort Collins, Colo.
July 27 filed 4,000,000 shares of common stock (par on«
cent).

Price— 10 cents

per

share.

Proceeds

—

For ex¬

ploration, development and acquisition of properties and
for working capital.
Underwriter—Columbia Securitiei
Co., Denver, Colo.
Drexel

Furniture Co.,

Drexel, U. C.
shares of common stock (par $2.50)
being offered in exchange for common stock and class B
common
stock of Heritage Furniture, Inc., High Point,
N. C., and for common stock of
Morganton Furniture
Co., Morganton, N. C., on the following basis: IV2 shares
Dec. 12 filed 190,000

of Drexel stock for each

ters of

Heritage share and three-quar¬
share of Drexel stock' for each Morganton share.

a

These offers

contingent

are

upon

acceptance of not less

than 80% of the 665 outstanding class B shares of Herit¬
age and of the 80,000 common shares of Morganton; and
not less than 164,992 of the
70,910 outstanding class B
shares

of Heritage.
The offers will expire on Jan. 18,
1957, unless extended. Soliciting Agent—R. S. Dickson
& Co., Charlotte, N. C. Statement effective Jan. 7, 1957.

★ E-l
Jan.

Mutual

Association

9

(letter of notification) 3,000 shares of class R
special stock, 1957 series, to be offered for subscription
by employees of Thomas A. Edison, Inc. or of its suc¬
Price—At

cessor.

working
N. J.

par ($10 per share).
Proceeds—For
Office — 180 Main St., West Orange,

capital.

Underwriter—None.

El

Paso

Dec.

14

Natural Gas

filed

Co.

5,285,952 shares of

,

common

B

stock

(Pa^|

in exchange for common stock of
Pipeline Corp. on the basis of 1of common B stock for each
eight shares of Pacific
Northwest common stock.
The offer is subject to ac¬
ceptance by holders of at least 2,435,600 shares of
Pacific Northwest. Underwriter—None. Statement effec¬

$3)

to

Pacific

be

offered

Northwest

tive Jan. 7.

* Engeiberg Huller Co-, Inc.
7
(letter of notification) 4,084 shares of common
(par $10).
Price—$25 per share. Proceeds^—F°r
working capital. Business—Manufactures rice and cof¬

Jan.

stock

fee

belt

i

debei

Jan.

Dec.

p

mam

Underwriter—Alien & Co., New

v, '

■

.

writer—Lehman

(1/30)

filed $2,000,000 of 5% subordinated convertible
debentures due Jan. 1, 1972. Price—To be supplied by
Underwriters

.

amendment.

Brewster-Bartle

Dec. 21

amendment.

bank loans.

repay

York,

28

Ripley & Co. Inc. and Hemphill, Noyes &
Co., both of New York.

Pittsburgh

Greai

Industry Developer»,

—

'

'

stock (par

mon

ment.

Boston

Underwriter

Co., P. W. Brooks & Co., Inc.
Auchincloss, Parker & Redpath, all of New York.

—Harriman

New York.

plant site, construction of a mill building, purchase
installation of machinery and equipment, and ai

writers—Allen

Beautilite Co.

record Dec.

City Electric Co.

filed

Underwriter—M.

Marquette Ave., Minneapolis, Minn.
Bishop & Co., Minneapolis, Minn.

Burma

shares

price

there

and

—None.

Shares, Inc.

Price—$56 per share. Proceeds—For expansion program
and
working capital.
Underwriter—Smith, Barney &

South Bend, Ind.
stock (par $10) to

a

expand company's business and operations.

"

(letter of notification) 30,000 shares of 6% prior
preferred series C stock to be offered to holders of series
A prior preferred and common stockholders of record
Dec. 31, 1956 on the basis of one new share for each four
shares of old stock held. Price—At par ($10 per share).
Proceeds—To be added to general fund. Office—7th St.

and

common

Development Secu¬

Dec. 27

expansion

be offered in exchange for the outstanding stock of Cap¬
itol Life Insurance Co., Denver, Colo, on the basis of 34

Office—Washing¬

investment.

ton, D. C. Distributor—Automation
rities Co., Inc., Washington, D. C.

9, 1957 at the rate of one new share for
shores held; rights to expire on Jan. 24, 1957.

Investment Co.,

Sept. 4 filed 200 shares of common capital stock. Price($3^000 per share). Proceeds—For acquisition of

To

Business—To lease and rent motor vehicles.
Main St., Port Washington, N. Y." Under¬

each

Associates

mated

writer—None.

of record Jan.

Jan. 7 filed 85,000 shares of

*Ev

[Jan.

Inc., Rainier, Ore.

Office—320

purposes.

Price—To be supplied

Co., New York.

|Vick<

* Colorado Fuel & Iron Corp* (2/4)
Jan. 15 filed $19,903,300 of 4%% convertible debentures
series A, due Jan. 31, 1977 to be offered for subscription
by common stockholders Of record Jan. 31, 1957 on the
basis of $100 of debentures for each 17 shares of stock
held. Price^-T6 be supplied by amendment. Proceeds—

(letter of notification) 100,000 shares of common
stock (par $1). Price — $3 per share. Proceeds—To pur¬
chase 104 new passenger cars and five light delivery
trucks and for working capital and general corporate

Corp.
Dec. 18 filed 1,088,179 shares of common stock (par $10)
being offered for subscription by common stockholders
10

fory;

[labor

At par

Inc.

Auto-Plan Leasing; Corp.
Dec. 31

scription

Steel

Chinook Plywood,

Et

I Sept;
I'par
Irepaj

Farmingdale, N- Y;
6% debentures. Prices
90% of principal amount.
Proceeds—For research and
development; expansion; equipment; and other cor.
porate purposes. Underwriter — None.

operating capital.

Blauner & Co., Inc. of New York.

and Weill,

Cleveland, O.

tA American Natural Gas Co. (2/8)
Jan. 14 filed 442,114 shares of common stock (par $25)
to be offered for subscription by common stockholders
of record about Feb. 8, 1957, on the basis of one new
share for each 10 shares held (with an oversubscription
privilege); rights to expire -about Feb. 25* Price—To
be supplied by amendment.
Proceeds •— To purchase

;

\

;

ISSUE

Aug. 27 filed $600,000 of 10-year

Philadelphia, Pa.
June 11 filed $600,000 of 6% convertible subordinated
debentures due June 15, 1968. Price—100% of principal
amount. Proceeds—To retire indebtedness of the com¬

Dec.

MonoRail

American

N. Y.

•

REVISED

Century Controls Corp.,.

V-

Bids.-Tb.be received up to 11
Irving Trust Co., One Wall St.,

Atlas Credit Corp.,

Bank

con¬

-

(EST) on Jan. 23 at

New York 15,

(1/23)

maximum of $13,925,600 of 20-year

a

thers; Blyth & Co., Inc.
a.m.

ITEMS

•

PREVIOUS

processing

grinding

aircraft parts; and. abrasive
Office—831 West Fayette St..

machinery;
machines.

Syracuse,A N.. Y.

.

Underwriter—None.

<

;

-■

Number 5604

185

Volume

.

.

The Commercial and

.

Financial Chronicle

(325)

t

Eternalite-Inc., New Orleans, La.

(1/30)

Underwriter^Praiik

filed 200.900 shares of class A common stock
|#par 50 cents); Price—$4;50 per share. Proceeds—To
[repay loan; for maintenance of and increase of inven¬
tory; f°r development of branch offices; and for research,
[laboratory tests, and testing equipment. Underwriter—
[vickers Brothers, New-York.. Statement effective Jan.- 8.
gept. 24

+

Evans International, Inc.

notification) S250,000 of 7%

,Jan. 3 (letter of
nated debentures

subordi¬

due serially beginning Jan. 1, 1962.
price—At par (in denominations of $1,000 and multiples
thereof).
Proceeds—For working capital.
Office—194
Great Road, Acton,-Mass. Underwriter—None.

B.

Bateman, Ltd., Palm Beach, Fla.
.j« •,
/

Ford Gum &

Inc. (3/15)
notification) $250,000 of 6% first mort¬
gage bonds due 1962 to 1967, inclusive.
Price—100% <©f
principal amount. Proceeds—For machinery and work¬
ing capital. Office—Hoag and Newton Sts., Akron, N. Y.

Fruit

Dec. 18 (letter of

machines.

.

common

Price—At face amount.

($L0 per share). Proceeds—For construction of
manufacturfitg plant and to, provide working capital.
Underwriter—None. Robert E. Evju is President.

Freiberg Mahogany Co.
Oct. 11 filed $2,000,000 of subordinated debentures

Proceeds

For expansion and general corporate

—

pur¬

V.//

Underwriter—None.

poses.

Florida Growth Fund,

Inc.

; /

Nov. 23 filed 2,000,000 shares of common

cents).:/Pric£^$5 per share.

Proceeds—For

be

(par 10

Proceeds—For investment.

Colo.

blocks

of

100

shares

of

class

Price—Both at

A

par

Underwriter—None.

Film Corp.,

New York

Jan. 14 filed 426,988 shares of common A stock
Vand

1,537,500 shares of

ceeds—To

stock; the remaining $500,000 of deben¬

the

B stock

common

Attorney

Geenral

of

the

(no par)
(par $1). Pro¬
United States.

Underwriter—To be determined by competitive bidding
No date has been set.
"

to Texas
Industries, Inc., which owns
Freiberg's outstanding common stock.
Price—To be supplied by amendment. Proceeds—From

.

„

,

.

General

Credit, Inc., Washington, D. C.
Aug. 17 filed $2,000,000 of 6% subordinated sinking fund
debentures, due Sept. 1, 1971, with detachable warrant*
to-purchase 160,000 shares of participating preference
stock, to be offered in units of $500 of debentures and 40
warrants.
Price—$500 per unit. Proceeds—For expan¬
sion and working captal.
Underwriter — None named.
Offering to be made through selected dealers.
-

sale of units to retire short-term loans and for
working
capital, etc., and from sale of debentures to Texas Indus¬
tries to retire a subordinated
promissory note payable
to the latter firm.
Office—New

Under¬

writers—Howard, Weil, Labouisse, Friedrichs & Co., New
Orleans, La.; Rauscher, Pierce & Co., Inc., Dallas, Texas:

ISSUE

in

* General Aniline &

+

NEW

150,000 shares of class A
150,000 shares of class A-l common

due

of

Orleans, La.

stock

and

offered

($1 per share). .ProceedSr-^-For construction purposes and
working capital. Office—1950 Taft Drive, Lake Wood,

>

sold

75%

be

to

together with 100 shares of class A-l.

1971 and 450,000 shares of common stock
(par 10 cents),
of which $1,500,000 of debentures and all of the stock
are to be offered
publicly in units of $500 of debentures

about

stock

stock

OJfice—127 North Sage St., Toccoa, Ga.

tures to

;

•*»'

Marion, Ind. Underwriter—Sterling Securities Co., Los
Angeles, Calif.
"
'

(2/15)

working capital.

and 150 shares of

v4".'

★ G. E. T. Investors, Inc.
8 (letter of notification)

Ftakewood Corp., San Francisco, Calif.
Nov. 14 filed 100,000 shares of common stock. Price—

Flick-Reedy Corp., Melrose Park, III.
Dec. 28 filed $1,200,000 of,;6% registered subordinated
debentures due Feb. 1,-1972, and 120,000 shares of com¬
mon stock (par $1) to be offered to employees, custom¬
ers
and/certain other "individuals in units of $100 Vof
debentures and 10 shares of stock. Price—$115 per unit.

.

(letter of notification) 300,000 shares of common
par ($1 per share).
Proceeds — For
working capital. Office — 1115 South Washington St.,

notification) $100,000 of 8% subordin¬

Underwriter—Not#.

San Antonio, Texas. Offerings..
V. * v. - ' '"A
'

Infer.'

Juices,

Jan.

ated debentures.

At par

•

stocks Price—At

Underwriter—None.

Franklin Discount Co.
Dee. 19 (letter of

Co., Inc.,
•

Dec. 3

and self-service

gum

&

Postponed. '

Machine Co.,

Business—Manufacturing chewing

Russ

and

Pffering-^Temporartly pp§tPQpedv.

1.29

General

Telephone Co. of Michigan

Dec. 18 filed 160,000 shares of $1.35 cumulative preferred
stock (par $25), being offered in exchange for the out¬

CALENDAR

standing shares of $2.70, $2.75, $1.44 and $1.35 cumula¬

January 17

/

(Thursday)

January 31

Chicago & Eastern Illinois RR..____Equip. Tr. Ctfs
/'

'

„

Bids

(

CST)

noon

Brunswick-Balke-Collender

$1,980,000

(Offering

'

to

(Bids

10:30

Socony

$20,000,000

Mobil

Oil

Co.__

January 21
K D I

Corp.—;

(Monday)

Kolmon

&

Co.,

Inc.)

V

$499,996

Maine Fidelity Fire & Casualty Co
Southwestern

Gas

Electric

&

Midland

.Common

(McLaughlin,1Cryan & Co.) $1,243,750

V

;

Co.......

•

Co.)

be

■

'A.

•

Midland

■

.Bonds

Commercial

,;

•

J.

J- Grayson

"A-

;

Securities

Inc.)

11

EST)

a.m.

$10,000,000

&

Co.,

$480,000

....Common

Inc.)

New England Electric System.

52,500 shares

(Exchange

/ January 22
Central National
(Offering
-

to

■

(Tuesday)

of Cleveland.

Bank

stockholders—to

McDonald-&

.

Co. I

.Common

toe underwritten

•

125,000

offer—Paine,
& Co. to act

Moseley

by

(Bids 8:30

Dillon,

Union

Allen

..

February 5
(Bids

$15,000,000

Co.)

&

(Harriman

Ripley

Co.

&

Union

underivritetn

be

Securities •&

Eastman

by

11

CST)

noon

First

Alstyne,

Boston

Corp.

Noel

(Merrill Lynch,

American

Preferred

$780,000

Co.)

&

iOffering

Phillips

Lester,

&

Ryons

$7,500,000

Co.)

Western Light & Telephone Co., Inc
Witter

January

&

Co.)

(

New York,

&

(Bids

EST)

noon

?

Franklin

Discount

(Offering

to

stockholciers—to

Stroud

&

Co.,

/be

(S.

LouisviHe Gas & Electric Co.___^__

Trust

..Common

D.

Fuller

11

EST)

a-.m.

Calif.

West

Penn

Trans-Canada Pipe Lines, Inc.

•

Debentures
(Lehman

White,
Ltd.;

Brothers;

Weld

&

Stone
in

Co.

United

&

Webi&ei-^Securitics

&

.Class A Common

States.

Ne'sbitt,

I

and
Co.,

Bonds

Common

(Bids

Brake
(The

,

Shoe

(Wednesday)

First Boston

(Bids

Debentures

Co

Weld & Co

Brewster-Bartle
(White,

Weld & Co.

Dayton

Rubber

-

and

Corp.)

:

'

—

Inc
'

7

invited)

Rowles, Winston & Co.)

Bonds
Bonds

(Vickers Brothers)

Ohio Edison Co;/_>
(Offering. to (stPdUiaJders-^bkis




(Bids

100,000 shares

invited)

be

March

12

.Common
580,4513-shares

March

-Ford Gum & Machine
.

-

.

-

per

- -

-

15

Bonds

$16,000,000

California.^—Bonds

$15,000,000

Bonds
$50,000,000

(Friday)

C0.,'Inc._ _V.——_—Bonds

(No- underwriting)

Inc.
common stock
(par $1).
Proceeds—To certain selling stock¬

share.

each

.$250,000*1 *" r

u

:.

•

Lemon

Alstyne, Noel & Co., New
& Co., Washington, D. C.
,

Dec.

Price—$10
and

28,

■

r

1956

on

the

basis of

one

new

share

four shares
per

held; rights to expire on Jan. 21.
share. Proceeds—To reduce bank loans

for

working capital. Underwriter—Dean
Co., San Francisco, Calif.

Witter &

Hotels

Corp.
278,733 shares of 5^% cumulative con¬
voting preferred stock, series A (par $25) and
278,733 shares of common stock (par $2.50) to be of¬
23

filed

vertible

fered in exchange for outstanding

capital stock of SavoyPlaza, Inc., at the rate of three shares of series A pre¬
ferred and three shares of common stock of Hilton
Hotels for each class A and class B share of SavoyPlaza.

The

exchange

unless at least 80%

^

». ,

Stores,

240,000 shares of

Underwriter—Van

record

Hilton

(Tuesday)

(Bids to be invited)

$900,000

T1- sum., EST)

to

filed

Pineapple Co., Ltd.
Nov. 29 filed 413,920 shares of common stock (par $7.50)
being offered, for subscription by common stockholders

Nov.

Commonwealth Edison Co

$5,000,000

Class A Common

;

$5,000,000

be invited)

to be invited)

Redwood City,
Co., Beverly Hills,

Statement has'been withdrawn.

of

$40,000,000

Southern Counties Gas Co. of

Debentures

/

Brothers)

(Bids

$2,000,000

Common

Rowles, Winston & Go.)

Co..—

to

2

Price—$9

for

(Tuesday)
Columbus & Southern Ohio Electric Co

$12*000,000

Drilling Co., Inc
and

(Lehman

Eternalite,

be

(Tuesday)

to be invited)

Road,

Hawaiian

March 5

Brewster-Bartle Drilling Co., Inc..——Debentures
(White,

to
shares

Southern Indiana Gas & Electric Co

January 30

|,

American

by

Common

February 26

Middlefield

York; and Johnston,

Co..
528,000

Hartfield

holders.

Illinois Bell Telephone Co

i

(par $5) to

Calif.

Oct.

(Monday)

stockholders—bids
about

Wood, Gundy & Co., Ltd.; McCloud, Young, Weir &
Ltd.; and Osier, Hammond & Nanton, Ltd.) $120,000,000

Co.,

to

Office—2553

Underwriter—Daniel HeeveS &

'

$37,500,000

be invited)

Electric

Oifering

Common

Corp.;
Thomson &

(1/2S)
stock

$1,000,000

(Offering to stockholders—to be underwritten
Kidder, Peabody & Co.) $6,000,000

$35,0(0,000

common

19

vision.

..Bonds
$10,000,006

Co.

&

February 25

.Debentures

& Tel. Co

Tel.

(Bids

Paper Co., Miquon, Pa.
108,160 shares of

for

Electronics Corp., Redwood City Calif.
(letter of notification) 300,000 shares of com¬
mon stock.
Price—At par ($1 per share). Proceeds—For
research and development. Business—Closed circuit tele¬
Nov.

(Monday)

EST)

South Carolina Electric & Gas Co

Mountain States

New

Hancock

Debentures

18
Co

noon

(Bids to

(Tuesday)

January 29

■

insurance company, to purchase a new: paper
machine,
together with auxiliary equipment, at the Miquon plant;
for additional capital expenditures and
working cap¬
ital. Underwriter—Stroud & Co.,
Inc., Philadelphia, Pa.

Ctfs.

$100,000

February 19 (Tuesday)
Southern California Edison Co

(Offering to stockholders—flo-be underwritten by Blyth
'& Co., Inc. and Lehman Brothers) 330,000 shares
.

offered

•

by

shares

Co.,

Price—To be supplied by amendment.
Proceeds—To¬
gether with proceeds from a new $1,500,000 loan from

(Friday)

Tower Acceptance Corp

underwritten

108,160

Inc.)

&

subscription by common stockholders of
about Jan. 25, 1957 at the rate of one new share
for each two shares held; rights to expire about Feb. 8.

$6,400,000

Co.____

February

Common

Noel

.

record

(Thursday)

underwriting)

New England Power

(Friday)
.....

Proceeds—To reduce bank

Alstyne,

investment.

Hamilton

be

shares

Debentures

invited)

be

to

(Bids

Co

Price—$52 per unit, plus accrued

V

Jan. 2 filed

....Common

Co

(1/23-24)

an

iNo

Debentures

...

January 25

•

442.114

share.

preferred stock.

on

Underwriter—Van

—For

(Friday)

February 15

-

(Morgan Stanley & Co.) $12,000,000

Paper

Loeb

,

Co...

Gas

Corp.

★ Guardian Mutual Fund, Inc., New York
15 filed (by amendment) 25,000 additional shares
of common stock (par $1). Price—At market. Proceeds

$6,720,000

Riegel Textile Corp.____^

Hamilton

Kuhn,

Finance

Jan.

Chicago & St. Louis RR.

Equip. Trust Ctfs.

Erie RR

Beane' and

one common

York.

Debentures

stockholders—no underwriting)

(Bids

200,000 shares

Co., Inc.)

Co.)

Consumer

75,000 shares of 60-cent convertible pi^eferred stock (par $10) and 15,000 shares of common stock
(par $1) to be offered in units of five preferred shares
dividends

,

Equip.

Common

(Loewi

Noyes &

•„

$25,000,000

Guardian

Nov. 26 filed

loans.

(Wednesday)

February 14

65,787 shares

Koehring- Co.

Pittsburgh & Lake

6

Co.)

Petroleum

(Thursday)

24

Hemphill,

Pierce, Fenher &

Natural
to

Common

(Offering to stockholders—to be underwritten by
Dean

<

(Offering to stockholders—to be underwritten by The First
Boston
Corp.) $171,750,000

Debentures
and

and

February 8

$3,000,000

Ruhr Aircraft Corp..
(The

•

■

.

and

Co
&

Guardian Consumer Finance Corp
(Van

.

„

-

Equip. Trust Ctfs.

...

(Bids

Aircraft

$10*000,000

Chicago, Milwaukee, St. Paul & Pacific
RR.

Douglas

Bonds

EST)

a.m.

February

•

$13,925,000

Co.)

Atlantic City Electric Co.__.
(Bids

Bonds

...Debentures

Inc.

Colorado in units of 50 shares of class A

2,950

new
construction and working capital.
Business—
Operates year-round resort hotel. Underwriter—None.

$3,060,000

$18,000,000

*

for

...Equip, Trust Ctfs.

_______

American Machine & Foundry Co.____.Debentures
Dillon,

.Debentures

(Tuesday)

invited)

be

to

'

shares of class B stock and one >$7,000
debenture. Price—$10,000 per unit. Proceeds—For pur¬
chase of property, remodeling of present main
building,

Co.( $29,903,300

&

Baltimore & Ohio RR..___

(Wednesday)

Stockholders—to

stock,

.

Carrier Corp.

(Offering to

of Texas and

(Monday)

Public Sendee Co. of Oklahoma
•/.
'
(Bids to be Invited) $12,000,000

.......Debentures

Securities

January 23

S.

stpckholders-rtU) .be underwritten by

to

•

$35,000,OCO

Pacific Petroleums, Ltd..
(Eastman

F.

shares

Bonds

PST)

a.m.

and

819,000

4

(Offering

.

Curtis

&

Colorado Fuel & Iron Corp.__.___,
'

Pacific Gas & Electric Co..

.Common

Jackson

dealer-managers)

as

February 4

;

shares

Cincinnati, New Orleans, Texas &
Pacific Ry.——_L,._
.Equip, Trust Ctfs.
/ f t a
(/y,'
<Bkls. noon EST)- $4,200,000 . y..

Webber,

__

Corp., both of New York.

Lodge, Inc., Durango, Colo.
Aug. 23 filed 5,000 shares of class A voting common
stock (par $1), 295,000 shares.,of class B non-votihg
common stock (par $1), and $700,000 of 4% debenture*
due Dec. 31, 1975, to be offered for sale in the States

~

(Bids

pre¬

Gold Mountain

Debentures

Corp

$2.75

Paine, Webber, Jackson & Curtis and Stone & Webster

.

(Friday)

Grayson & Co.,

or

ferred, two shares of General preferred, plus $2 in cash;
for each share of Union $1.44 or $1.35 preferred, one
share of General preferred, plus $1.25 in cash. The ex¬
change offer expires on Jan. 25. Dealer - Managers—

■

by Morgan

Corp

Commercial

,

underwritten

4,379,758: shares

February 1

Preferred

____

(McDonald,

Stanley &

.

<

Common

(Offering to stockholders—to
,

lowing basis: For each share of Union $2.70

Debentures

Lehman

...Bonds

a.m.,i.EST)

Co...

stockholders—may be underwritten by.
Brothers) $5,888,800 r ••

'

■

Oklahoma Gas & Electric Co

tive preferred stocks of Union Telephone Co. on the fol¬

(Thursday)

offer

Savoy-Plaza is tendered.
v
; ;
*
.•

.

will

not

become effective

of the class A and class B stock of

Statement effective Decv 26*.

Continued

on

page

130.

■

JL30

*

A

(326) '

The Commercial and Financial Chronicle ,Thursday, January 17, 195;

I,

i

Continued from page

sale under

to he offered for

129

Plan

EmoloveeS

for

-

*

the.-eompdny^Stock.*.Gptlon--^--:' —National OMiinrliifiifitte# :Co^','
- '
r:
:r"Nov*-15, 1955 filed 50,000 shares of class A common
-

-

-

-

>

...

stort

"

Hub Oil Co., Denver,

of common
per share.
Proceeds—
-and drilling.
Office—
Denver, Colo. Under¬
Denver, Colo.

Dec. 18 (letter of .notification) 290,000 shares

g^cra,

Nov.

<®tock

(par £2) ^d ;SO,00& shares of class B

^

mortgage bonds

Feb.

Tlo

(par

Price—$1

cents):

10

for exploration
First National Bank Bldg.,

buy

413

leases;

writer—Skyline Securities,
^

Inc.,

shares of common capital stock (par
Proceeds — For investment.
The First Sierra Corp., San Francisco,

Jan. 11 filed 50,000

Price

Underwriter

Calif.

—-

Theodore

President.

—Temporarily postponed.

At market.

—

C.

Hossfeld, also

of

San Francisco,

is

4

rants

:•

cents),
Equity
Equity
shares

,

purchase

Vshares

filed

shares of

370,000

cial

receive the

to

are

tional

common

stock in

of

185,000 shares each of Internaexchange for all the outstand¬

■-

to

Underwriters—Names

ital.

-

by

V

K

D

I

*

•

'

*

rants

for subscription

offered
the

on

basis of

by

common

share for each share held,

one

or

for each share subject to

"

purchase under such warrants.
Price—$3.25 per share.
Proceeds—To equip and stock
a warehouse
and any new stores that may be acquired.

Underwriter—Peters, Writer &
Colo.

Christensen, Inc., Den¬

Commercial

filed $480,000
debentures.

filed

4

Price

Midland
28

South
stock

of

common

stock

(par $2).

short-term

bank

Underwriter—Loewi &

—

loans and for working capital.
Co., Inc., Milwaukee, Wis.

^ Lawn Electronics Co., Inc.
Dec. 27
(letter of notification) 50,000 shares of
mon
stock
(par 10 cents). Price—$1 per share.
ceeds

—

For

general

To

'KST) oil-Fob. 18 at .441-St«art,Slieet, Boston

t

filed

corporate

Freehold Road, Freehold, N. J.

purposes.

Office

Pro¬

—

East

Underwriter—None.

"_h

mon' stockholders, of -.record Jan. 10,;; 1957^""at the -rate 0
$100 of debentures for each 25 shares'Of stock held; right
to expire; on /Jan. 28^ 1957; Price—rd00% of principi
—

For construction

Under|

program.-

,;:\vriter^Harriman;Ripley & Co. Inc., New, York.

Corp., New York :(2/1);:
shares of common stock ;(par 10

187,500

li

7.:

Dec. 20 filed 846,224,200 of 4%%- convertible- debenture
due teb. 4/ 19 7Q,l being- offered for subscription by com

amount. Proceeds

-F-!

Nic-L-SJIver Battery Co., Santa Ana, Galif.

Canada Uranium

Corjg. in exchange for

corporations

the basis of

on

common
share of

one

:.reworking' capital and general corporate
wrUer-^None.

Midlandfor each Ramie share and "one share of Midland /
for

each

shares

five

of

South

-

Canada

^

,

.>>•;.

Under

purposes.

^

AV;/;-*./,

Northern Illinois7 Corp. *

;

'V'Vf

' *A

;;

o

stock;.

common

Proceeds

Grayson &
Co. of New
2,000

it Mitgo Electronic Corp.
Dec. 26 (letter of notification)

\

10,000 shares of

towoc

common *

issued in

are-to. be

Citizens

Loan

exchange

-Investment

Co.

on

for
the

$50,C

Mani-]

basis

of

;share;pf preferred for each $25 principal amount of
notes.
Office—112 East Locust St., DeKalb, 111.
Under

one

Stock

(par $1). Price—$10 per share. -Proceeds—rTo ex¬
pand plant; for factory and supplies facilities; 'for :pur¬

chase of additional test

shares

principal amount of corporate, notes, series A, of

-

Wrriter—None,'•

equipment; and working capital.
Ave.,/Miami-'Fla/Underwriter

,

Office—7601 N. W. 37th

V;Northwestern Public Service Co:

-None.'-

Dec. 18 filed

:■

•

'

Projects-Venture Ff Inc.,

Madison, N. J.
$2,500,000 of Participations in Capital as
Limited Partnership Interests.- Price — In $25,000'units. ;
Proceeds
To acquire leaseholds and for
drilling oh
14

filed

10

rights to .expire on Jan. 22." Price—$1
Proceeds ■— For construction expenditure:

share.

Underwriter—A. C. Allyn & Co., Inc.,
Chicago/ Ill.

exploratory wells. Underwriter—Mineral'Proj- i

or

shares held;

per

—

initial

,-';

54,120 shares of common stock (par $3) be|
ing v,offered for subscription by common stockholders
record Jan. 8, 1957. on the basis of one new share for eacl

'

ects

Co., Ltd., Madison, N. J.

;

Ocean

.

City Pier Corp., Berlin, Md.

Oct, 4 filed $2,000,000 of 6% debenture bonds due July

Minerals, Inc., New York
com¬

new

•

New York "(2/1)'•

Corp.,

Commercial

of those

Dec.

shares

To be supplied by amendment. Proceeds

—

reduce

(1/24)

200,000

,

of 10-year 7% -subordinated con- : ...-w-br;.v-.v'
Price—100"%^^-ob' principal-::amount/•^|aga^-IVI-phawk;Ppwer

Maryland, Inc., Baltimore, Md.;

Mineral

Koehring Co.

(2/1)

-

ver,

Jan.

England Electric System

cents), of which 52,500 shares-are to be offered.for cash
.Dec. 27 filed 75,000 shares of 5% cumulative
participatj
at par to certain individuals* and the /remaining 135,000
-ing preferred stock and 7,500: shares -of common-,stocl|
shares are to-be offered by Albert Ji; Grayson f controllPrices—At par- ($10 per<share).* Proceeds — To liquidat
ing stockholder) to stockholders of Ramie Corp. and y a; bank loan of $178,635; increase inventories; and fo

-

(1/21-25)

stockholders
and holders of certain outstanding stock purchase war¬

to be

r

.

Jersey, Inc., Newark/ N. 'J.;vand A./-J. Grayson &

Dec.

-

v

bank

,

working capital, to;finance expansion; of ;;
Northern Appliance Stores, Jnb:/ a subsidiary/- and; for
other corporate purposes. Underwriters--^A,Jv Grayson ;
& Co., Inc., New York, N. Y.; A, J.-Graysein-& Co: of.
Co. of

Corp., Rochester, N. Y.

Bruusl

New

.

vertible

Co.

Nov. J6 filed81,428 shares of 7 % " participating cumula*tive preferred stock (par $5), of which 71,428 shares are
to be offered to public. Price—$7 per share. Proceeds—
For machinery and equipment, working capital and other
corporate purposes. Underwriter'—McDonald, Holman &
Co., Inc., New York.
,
<
King Soopers, lnc., Denver, Colo. ^
Jan. 15 filed 263,048 shares of common stock (par $1)

•

New

-Proceeds—For

amend-

convertible debentures duo
iNov.f, J966. Price—-100% of principal amount. Proceed!
«-*To pay short-term loans and for working capital. Un¬
derwriters—McLaughlin, Cryan & Co. and Gearhart &
Otis, Inc., both of New York.
-

The
repay

share of Idaho ,Rare- Minerals~ Corp^
J>eci-3 Jileq.- 819,000 -shares of common* stock, (par
convertible sinking fund preferred r:stoGk, ::*;tc> be/offered in rexchange -for, capital stock of Lyd

Midland

,

(F. L.)

to

Aug. 1, all for .4%s, but were turned down,.Jteoffering isPierce^ Eenner Si Beane, " Kidder^Peabody & Co.; ant
expected sometime during the first/six months^^of: 1957.*;/White,Weld & Cou (jointly). Bids—To be "received-up t(
•

Oct. 4 filed $3^000,000 of 6%

>

one

New

Jacobs

advanced

.

.

■

ment.

be

Electric Power Commissionr to

loans
Underwriter—Halsey, Stuart & Co. Inc., New York and
Cliicagp./ Offering^-Temporarily delayed.

.

and one share of Idaho Rare common stock,i par / Gas & Electric Co. oil . the basis .of-two NEES shares
per unit). Price—$3 per unit, vconsisting ; for each-Lynn share.
Dealer-Managers—Paine, Webber
McRae share and one warrant. Proceeds — For
Jackson & Curtis and F.-S.-Moseley & Co., both o

Dec. 28

supplied

he

;

,

Underwriter-^None. -w '

San Francisco, Calif.
(par one
©ent).
Price—$1 per-share. -Proceeds—To equip and
establish five super launderettes and for working cap-

?

dueri987> >Proceeds—To repay baim loans and fori
construction. Underwriters—To he/ determined bjf
competitive bidding. >Proba.ble. bidders: ^Halsey, Stuar
loans and for construction program; Underwriter^-To^be i.
Co. Inc.;;Kuhn,,Loeb & Co., Salomon? Bros. &^Hutzfor
determined by competitive ;bidding;
Probable:bidderst t Eastman -Dillonv /Union Securities, & Co;v and Wood
Haisey, Stuart & Co. Inc.;: :The ^First Bostons Corp.,- 0 Strutters & pb;..(jointly); --Lehman Brothers;- The- Firs
Dlyth & Co., Inc.
Bids—Three bids were received^on .'Boston Corp.^Equitable Securities;Corp.; Merrill "Lynch

500,000 shares of common stock

filed

:

/Michigan Wisconsin Pipe Line
July 2, 1956 filed $25,000,000 of first' mortgage pipeline
bonds due 1976. Proceeds—To pay off short term bank

International Duplex Corp.,

Dec. 21

wick

r

of 25-year sinking fund deben¬
Price—To be supplied by -amend,

1, 1982.

Proceeds—To

ment,

-

expenses.^ Office—c/o- Robert/J. McRae,-T704 .rBostoii, Mass.
^
;
/
•*'
VV;
/
b
<• 1
Gourley St., Boise, Ida. - Underwriter—Von Gemmmgeh /
New England Power.: C©»";( 2/18);^--f •v**:
'.-J
& Co., Inc., 320 North Fourth St., St; Louis, Mo,
^ Jam/15 filed
$10,000,000 of -first mortgager bonds,-seriel

142,000

(exchange offer.

tures due Jan.

>"

-

Tnrl of i »-> ;*vl
Indefinite

—

$12",000,000

14 filed

mining

common

shares of Equity common owned'by Fre¬
Corp. will be tendered in acceptance of the Equity

that

^

Offering;

cent at $11

one

ing shares of commoru stock of Investors Financial Corp.
*nd Group Equities, Inc. International has been informed
mont

$10

par

©neriiare of Financial common stock. Equity and Finan-

,v
'

•-

New
Dec.

y

Y.

,

.

stocU

Ljttle Rock, Ai(
Securities- Corp., ^sshviljp
Nashvijl

-. ... ■
Brunswick:1 (Province of)
.

common

Office

one

cumulative

Des Wemes, Iowa
si.>ck (par 10
of -which 185,000 shares are to be offeiM by The
Corp. on a share-for-share basis in exchange for
Corp. common stock, and the remaining i.35,000
by Financial General Corp. on;a basis of 1%
of International common stock in exchange for

29

Tehn., and New York, N.
postponed...
^
.-1

(letter of notification) 100,000 shares of common
(par one cent) and 100,000 stock purchase war¬
(each two warrants to entitle holder thereof to

stock

...

International Capital Corp.,

Nov.

-

stockholders.
—
Equitable

Underwriter

Nov. 30

Washington, D. C.
Sept. 28 filed $1,000,<100 of time certificates, series ©, C
jtad D. Price—At 100% of principal amount. Proceeds—
fPer working capital.* Underwriter--Johnston, Lemon &
Co., Washington, D. C.

1

-

Tungsten Corp., Boise, Idaho

McRae

International Bank of

-

eTo celling

purchase properties from parent, The May Department s
Stores Co.; to pay existing indebtedness- to parent and
for acquisition or construction of additional - properties
to be leased to parent.
Underwriters—Goldman, Sachs
& Co. and Lehman Brothers, both of New York. Offering ;

Calif.

*$1).

_

15. 1977. Price — To be supplied-by-amendment.
Proceeds—Approximately $18,000,000 is to - be used ;to

Inc., San Francisco,

Investors Fund,

^ Insurance

,

V--

Corn
May Stores
23 filed $25,000,000

Maw CWc Realtv

Colo.

-

1976, and 4,000,000 shares,of common stock (par
2,500,000 shares of common stock (par
pent) to, be offered in units of one $100 bond and
Price—$1.50 per share. Proceeds—To acquire*
,
for $2,400,000 the Chavin lead-zinc-copper-silver mine^^;;,,,Shar.ps, of
stocky Price—$300 per unit. Proceeds —
June

filed

22

cent).

one

,

¥l

.

onj
201

„

Fo
located in South Central Peru, and for general corporate
^operation-^ of .amusement pier« Under
purposes.
Underwriter
Gearhart & Otis, Inc., NewV.y^1'^^/.'.?^
-'^ir.ector, of Johnstown, Pa
York. Offering—Postponed.
V
"
*
Lt^-Col._• Jaihes A. Grazier of Whaleysville and Ocea
-

Life

<

Oct.

15

Insurance

Co.

South

of

Carolina

—

filed

339,600 shares of common stock (no par)
t© be offered for subscription by stockholders of record

4

*

Sept.
for

12,

each

1956 at the
share

rate

held.

of

Price—To

Share; and to public, $15

per

shares

two

of

new

stock

stockholders, $10

share.

Proceeds—For

pei
ex¬

pansion and working capital. Underwriter—None. Pub¬

lic offering will be made by employees of the company
and
qualified
licensed
dealers.
Statement
effective
Dec. 28.

_

..

(1/25)

Jan. 3 filed 330,000 shares of

common stock (no par) to
subscription by common stockholders of
record Jan. 24, 1957, on the basis of one new share for
each ten shares held
(with ah oversubscription priv¬
ilege); rights to expire on Feb. 11, 1957. Price—To be

be offered
,

(Ky.)

for

supplied by amendment. Proceeds—To repay bank loans
and for new construction. Underwriters—Blyth & Co.,
Inc. and Lehman Brothers, both of New York.

Loyal American Life Insurance Co., Inc.
Sept. 28 filed 230,000 shares t>f common stock (par $1)
t© be offered for
subscription by common stockholders
-

,

*

of record Oct. 15, 1956 at the rate of

one

new

share for

each three shares held

'

(with an oversubscription privi¬
lege). Price—To be supplied by amendment. Proceeds
r-To increase capital and surplus. Underwriters—J. H.
Goddard & Co., Inc., Boston, Mass., and
Thornton, Mohr
&

Farish, Montgomery, Ala.
Maine

Fidelity

Fire & Casualty Co.
(1/21-25)
99,500 shares of capital stock (par $5).
Price—$12.50 per share. Proeeeds — To increase capital
and surplus.
Office—Portland, Me. Underwriter—Mc¬

Nov.

28

City, Md.,

.Mississippi Valley Portland Cement Co.r >
Dec. 26 filed 1,600,000 shares of capital stock (no
par), of :
which 708,511 shares are subject to an offer of rescission.
Price—$3 per share. Proceeds—For Completion of plant,^A
provide for general creditors' and ■■for";'working capital.
Office—Jackson, Miss. Underwriter—None, offering to >
be made through company's own agents.
* :
'
...

•

LouisvHie Gas & Electric Co.

v

.

**

.

_

21

1

'

...

Missouri Public Service

Dec.

"

Co.

.

filed. 319,894

the basis of

one

new

share for each five shares held

★ Marathon CorpM Menasha, Wis.
Jan. 11 filed 150,000 shares of common stack
(par $6.25)




"

o

'

,

^

9' y '*••"- 1
*V*
A
shares of common stock (par .$12
subscriptioa, by,«common- stockholder:
«'a^
°^e new share W
o10

77

$

-

u

1(! share.s held (with an oversubscription privilege)
rights to expire 011 Feb. 15r 1957. eprice—To be fixed 01

••

on

Chairman of the Board.

P#l;

shares of common stock (no par)construction
being offered for subscription by common stockholders
by
/

&

program.-

Underwriter-^-To

competitive-bidding.
Co.; Lehman Brothers

be

determinetfl

Probable bidders* White-Welt

and Bear Stearns & Co (joint
rights to expire Jan. 29-Price—$13 per ;/ly); Merril Lynch,
Pierce; Fenner'& Beane and Kiddei
Preeeeds—1Together with $0,000,000 to-be received v Peabody & Co.
(jointly); Morgan Stanley & Co *- Th
from private sale of first mortgagebonds,- >to be used :* First Boston Corp. Bids—To be received
up to. li a.n

on

Jan. 15, 1957:

share.

to

letire

bank

loans

and

h|w/construction.-

pay^ xoi

Underwriter—Kidder, Peabody & Co.,. New York;

; (EST) on Jan. 30 at the office of Commonwealth Serv
~

ices, Inc., 300 Park Ave., New York, N. Y.
>
Telephone &/Telegraph Co.
M.\
Ohio Power Co.
(1/29)^;; \ *;■' t ' >*
Sept. 20 filed 60,000 shares of-cumulative preferred stocl
Jan. 4 filed $35,000,000 debentures due - Feb. Fl
^ 1983.
(par $100). Proceeds—For construction program.
Undeij
Proceeds—To -repay ad vances from
American'-Telephone-C; write
;r—To be determined by
eompetitive ^bidding. ^-Prob
& Telegraph Co., the parent,
whrch;were used*for con- -..able bidders: The First Boston
bidders;
Corb.*"Blvth & Co., Inc.
Corp?.;/Blyth & Co, Inc
struction program.- Underwriter-^-To/ be- determined"
by 4V Kuhn Loeh & Cn-FEastman nuirtn
Loeb
x,
Co.; Eastman Dillon/Unioh Securities & Cc
C°
competitive bidding.
Probable bidders: Halsey,- Stuart
hnd Salomon Bros.-& Hutzler
(jointly); Harriman Riple.v
& Co. Inc.; The First Boston
Corp.;-Morgan Staqley &
& Co., Inc. and Stone & Webster
Securities Corp. (joint*
Co.; Drexel & Co. and Dean, Witter & Co. (jointly). Bids
'ly);-Lehman Brothers; Bids—The two received up to F
—Expected to be received up to 11 a.m.
(EST) on
a.m.. (EST-)-on Oct. 30 were
rejected.
Jan.
Mountain

29.

-

.

,

States

r.

•

...

.

,

filed

Laughlin, Cryan & Co., New York.

ni-

Jan.-28.'Proceeds—For additional investment in eomiroi
stock of
Pennsylvania Electric Co., a subsidiary, and foL

-

-

.

is

■l
•

National

Nov. 30
stock

(par $1.25)

basis of
■per

Fidelity Insurance Co.
(letter of notification) 33,000 shares of

one

share.

Pme

to

be offered* to

share for each

Proceeds

For

seven

on

the

21

mon

common

stockholders

shares held.

Ohio Water

Dec.

stock

12 shares held as of Jan,
^

working capiiaLv -Office—314 .-^hy:

St., Spartanburg, N. C.

Underwriter—None.

stockholders-on the b^sis of

eommon

Price—S8

Service Co., Strainers, Ohio
of notification)
11,295 Shares of com¬
(par $10) to be offered for subscription

(letter

-

11/ 1957.

amendment,Proceeds

.4-

pJ

one

share

Price_To be

For -construction

for-each

suppli^
-progra^l

Underwriter—Blair F. Claybaugh &: Co., Harrisburg,

pJ

.Volume

Number 5604

185

.

.

;

The Commercial aM

Financial Chronicle

(327)
Oklahoma Gas & Electric Co.' (1/17)-

,/

term bank loans.

Office—New York City. Underwriter—
mortgage' bon^due- ...iMorgan Stanley. & Co., New York.
1987. Proceeds—For- construction program. Underwriter
^ ; Rohr
___To be determined by. competitive bidding.
Probable > Dec. 27 Aircraft Corp., Chula Vista, Calif. (1/23)
filed $7,500,000 of
convertible subordinated de'bidders: Halsey, Stuart & Co..Inc.;.Lehman Brothers and
; bentures due 1977;
Price—To be supplied by amend¬
Blyth & Co., Inc: (jointly); The First Boston Corp.; Mer- ment. Proceeds—-To reduce
short-term bank ioans, and
rill Lynch, Pierce*/Fenner & Beane and White,-Weld.
for expansion and
working capital. Underwriters—The

(jointly); Harriman Ripley & Co. Inc.;, Eqpitable
Securities Corp.) Kiihn, Loeb & Co. Bids—To be received
'up to 10:30;a.m. (EST) on Jan. 17 at The First National
City Bank of New- York, 2 Wall St.; NewYorkl5/N. Y.
:
ortefield Mining Corp.; Montreal,. Canada ;
Oct. 15. filed 900,000 shares ■of.eapitaLstocMpar |lg of
which 200,000 shares are now/outstandings Price—To/be
supplied; by amendment.'/proceeds — For-exploration
costs. - Underwriter—^Tp be named later.,. Michael!Tzopanakis, of Miami, .Fla., and- Denis Colivas, of Montreal,
Canada, are large stockholders.;
/- V
:
Co

.

•

Scovill

Dec.

■^/;V

Mining & Development Co. Ltd.
(letter- of ^notification ). .300,000 shares oC com¬

* Palston
11

/

mon

To

/-//•■".■

■

Office

National/Bank- -Bldg./-Detroit

1400

—

/

Underwriter—Troster; ;Singer, &/Co;, New :York,; N/fY:
•

-*■. '

Plastic

Wire

&

■

Dec. 27- (letter of /notificatioFi
stock (par $5): to be" pffered

/

f

Cable. Corp.

of

offered

for

-

486,000-shares

shares

shares

Probable bidders: Halsey* Stuprt & Co.
JncyKuniyLpeb
& Co. and Eastman Diilofi, Uhion Secuiiti.es & Cq. (jointly); Blyth & £o./Inc.v The' First,Bpstori -Corp. / Equitable

1

filed

7

Dec.

are

to

are

be

to-be reserved

of

or'before Dec. 31,

•

Price—$3

per

L

•
"

'

'

! •/

-•

^

y

_

^ *

V

-

Puerto Rican Jai Alai, Inc. "
?■ 27 filed.
$1,500,000 of 12-year

«•

^

share.

v

1

underwriter,

':t. \
6% first mortgage

bonds due 1968,

and 300,000 shares of common stockv^ar
$1) to be offered ir)- units* of a /$500 bond- and 100, shares
'.of stock./.price -X-Tp,hej$500 per
,

construction of fronton -and

Southern

.

5

Dec.
tered

Unit./Proceeds,L-^Foc
related/actiyities.yOffice-

San Juan, Puerto Rico.
> Underwriiers—Crerie ^
Houston,'Texas^Dixon Bretscher Noonan, Ihc;,- Spring-

are

.Sportsman, Inc.

to

the

Syndicate,

directors

and
">

>

Inc.

first to

public.

of

tive

•

ProceedsL-To
tures

as

well

tions/Mne.;'

eutstanding 15 %, deben¬
P,roduc-

retire $125,000' bf
as

a

a

and

vision releases.
York.

;

for ' working

capital. Business-^TeleL;;-Aaron & Co.^New

Underv^Titer—E.
"

.

,'v

./

★ Realsite Inc."*./.:*'
Hec.

stock

f
♦>
!;•
s\'"(letter^of/notification) ;200 'shares!of common
(no par). / Price—$750!peF'share.-- Proceed^-For
•

27

working

capital.

Office—138-16
—None.'

,

*

in real estate.
Ave./Jamaica/35; N. Y, Underwriter.

Business—Tot invest

101st

4

IV. y

•

//

vy;

y-

Riegel Textile Corpi rXl 24). /
. /
./
Dec. 20 filed
$12,000,000 sinking fund/ debentures^,due
1977. Price—To be.,
supplied by amendment.'- Proceeds
—To retire
$4,400.000• tend notes .and to reduce Yhort-




Southwestern

Dec.

26

Gas &

Investment Co.. Atlanta. Ga.

(1/21)

Underwriter—To be determined by competitive
bidders: Halsey, Stuart & Co. Inc.;
Equitable Securities Corp.: Salomon Bros. & Hutzler;
Blyth & Co.. Inc.:-Lehman Brothers: Kuhn, Loeb & Co.;.
■> Merrill
Lynch, Pierce, Fenner & Beane: Bids—Expected
gram.

bidding., Probable

•

11

a.m.

(EST)

on

Jan. 21 at Bankers

Co., 16\Wall; St/New York, N. Y.

Southwestern Public Service Co. \

-Dec. 21

Pro¬

par.

share of Title Guarantee stock in

a

latter
stock.

Guarantee

The

stockholders

subscription

becomes

company acquires at least
The purchase offer will

85%

expire

effec¬
of

on

the

Feb..

effective Dec.

17.

Tower

26

filed

$80,000,000

(1/29)

(Canadian)

of subordinated
shares of common
(par $1-Canadian) to be offered in units of $M)0
of debentures and five shares of stock.
Price—$150 per
due

1986

and

4,000,000

unit.
In

Proceeds—For

United

States:

new

construction.

Under writer*—

Lehman

Brothers, Stone & Wehster
Securities Corp. and White, Weld & Co. In Canada: Nesbitt Thomson & Co. Ltd.; Wood, Gundy & Co.
Ltd.;
McCloud, Young, Weir & Co., Ltd.; and Osier, Ham¬
mond & Nanton, Ltd.
Tri-State

Rock

Material

preferred stock.

Corp., Leesburg,

ceeds

—

Price—At par

For asphalt

($1.50

Va.

share). Pro¬
plant, equipment, working capital
Underwriter—None.

filed 291,967 shares of common

stock (par $P

being offered for subscription by-common stockholders

per

and other corporate purposes.

if Turf Paradise, Inc., Phoenix, Ariz.
,

•

,

Jan. 11 filed 50,000 shares of common stock (par
$10) to he
first offered for subscription by common and, preferred

stockholders.
issued

and

Price—$15

per

share.

Proceeds—retire

outstanding preferred stock.

None.

•

•

•

.

•

Underwriter—

-

if United Funds, Inc., New York
(by amendment) 1,500,000 additional United

Jan. 11 filed

Accumulative Fund Shares (par $1).

Electric Co.

filed $10,000,000 of first mortgage bonds, series

to be received up;to

share in lots of

per

stock

series Av regis¬

G, due Jan. 1, 1987. , Proceeds—To prepay about $6,000,.000 of temporary bank loans and for construction pro¬

Trust

if

Nov.

1, 1967 to be
14-day period; then

Aug. 24 filed 750,000 shares of capital stdck '(par $1).
Price—64V2 cents per share. Proceeds—To selling stock¬

*

$10

in

Nov. 28 filed 500,000 shares of 6% cumulative convertible

holders. /Underwriter—None.

$173;180 debt to Trans-Union

4/lOths of
Title

debentures

-

Southern Union Oils Ltd., Toronto, Canada

f

expected at

Underwriter—S. D. Fuller & Co., New York.

Price^-90% of principal to stockholders;
Proceeds—For expansion of its

Underwriter/—Allied

A.

shares; of class B, expected at

Acceptance Corp., Houston, Tex. (2/18)'
Dec. 7 filed 200,000 shares of class A common stock
(par
$1). Price—$5 per share. Proceeds—For working capital.

and at par to the public.

Ga.

to

ment

Pro¬

present activities /ip/ the real estate and mortgage field.
Office—1206- Citizens & Southern Bank Bldg., Atlanta,

Pyramid Productions* Inc.* New York
Sept. 27 filed 220,000 shares of. common stock (par $1),
of which
200,000 shares are to be offered to public-and
20,000 shares issued to underwriter: Price—$0 per.jshare.

class

28. 1957. Price—To be supplied by amendment/Proceed!*
—To acquire Abstract stock. Underwriter—None. State¬

-

stockholders for

•

exchange for each share of Abstract.
offer

Southern

'

(letter of/notification')5 $130,000
convertible debentures due Feb.

offered

.

officers

-

Dallas,

Title

cash and

Inc., Atlanta, Ga. Philip H.
Dohn, Jr., and Roger H. Bell, sole stockholders of the

»,

Co.,

'

by stockholders 011 the, basis of one new sharetfor each
eight shares held; and the remaining 26,152 shares are
to be offered, together with
cash, in exchange for stock
of Abstract & Title Insurance
Corporation of Buffalo,
.Rochester and Lockport, N. Y., on the basis of
$15.25 in

ceeds—To

; ly/.;/'T

-

'

Guarantee & Trust Co., New York
No\v 21 filed 61,902 shares of
capital stock (par $8) of
which 35,750 shares are to be offered for
subscription

In vestment'Under writers;

•

Securities
'

Trans-Canada Pipe Lines, Ltd.

(jointly);.Glpre,JVForgan/&,Co.;-/Saroman Bros. ^/Hutz'r

'

Newark, N. J.

•

buy or/establish a complete sporting goods
housem other expansion and inventories. Underwriter—

ler/ Bids—Tentatively scheduled. iof/Feby4.!

I

Underwriter—Franklin

Underwriter—Eaton & Co., Inc., New York.

publicly offered and 111,300
on
exercise of options to be

1956).

com¬

(letter of notification) 380,000 shares of com¬
stock (par 10 cents). Price — 75 cents
per shane.
Proceeds—For inventory, work^ag capital, etc. Business
—Electrical heating. Office—26 Avenue B,

granted to employees of the company (latter exercisable
on

Scott,,

Thermoray Corp.

which

Securities Corp.; White, Weld & Co.:and ShieldsCo.

•

P.

Underwriter—None.

(par $1). Price—$2.50 per share. Proceeds—
pay
bank loans, financing of time payment sales
appliances and air conditioners and for working

Abstract

of

A.

Ex¬

mon

*

stock,

common

Proceeds—To

the

on

Stock

June 29

Southern Sportsman, Inc.* Atlanta, Ga.

375,000

time

to

Toronto

theatrical and entertainment
Business—A non-diversified closed-end
manage¬
ment investment
company. Underwriter—None.

—

filedv$12;OOOiOOQ of- first .mortgage/bonds,'/series
F, due Feb. 4/ 198.7. Proceeds -y To repay $8,400,00/) of
short-term ~ bank
arid/for. construction program.
Underwriter—To be determined by/competitive bidding.

time

the

or

fields.

V

14

'

stock

ceeds—For investment

.

Jan.

Under¬

Corp., Clarksville, Texas
T
of notification) 120,000 shares of

not less than 25

Sept. 19 filed 1,173,696 rights to purchase 146,712 shares
to st'ockhd)de>js/bfFefeord 7 of rlew capital stock (par $25) to be issued to American
Dec. 17, 1956 on the basis pi one hew share for 'each/12
Telephone & Telegraph Co.,. which owns 21.61% of the
shares held. Price—$16.50 per shared/Proceeds—Foi* ex¬
.outstanding stock of Southern New England Telephone
pansion * and additiohab working Capital/ Off ice y-"East
Co. Proceeds—To American Telephone & Telegraph Co.
Bids
Had beeiVexpected to be received up to 11 a.m.
Main/St./ Jewett City/Cbnn'.'' Underwritery-None.y ^ r/ •.
5: (EDTj on Oct. 10/ (See also preceding paragraph.)
★ Public Service Co. of Oklahoma (2/4) /. /
'*> v

;

Fuel

(letter

Price—Of

subscription

Southern New England Telephone Co.

bonds.

Theatrical Interests Plan,
Inc., New York City
Oct. 30 filed 52,000 shares of class A stock
(par five
cents) and 28,000 shares of class B stock
(par five cents).

-improve-'
Underwriter—None! /Offering—Delayed indefi/hitely by company on Oct. 4. (See also next paragraph.)
.

29

from

Exchange
by private sale.

Texas,

ments. '

V

)V"14,5j[4. shares/of cm.hmoji

be

to.

or

capital.

(par $25)
by/stockholders at the
v
ir Pioneer Finance -Co,!/
rate of one new share for each eight shares held. Price
Jan. 9 (letter* *pt .hotificatioA>*-12,000 shares of common^ !/*-<- $30 per: share.
Proceeds — To pay advances from
stock' (par - $l:)-v, I^ice—At-.ma:rket,k.'(,estimated; at/$S.8It2 /./American.
Telephone; & Telegraph Co. (approximately
to $3.87 J/£/per share/. Proceeds^—To a selling stockholder. /"
$15,800,000) Zand /fpi/ property additions and
"

market

Stock

Texas

Nov.

/./Southern New England Telephone Co.
Sept/. 19 filed 679,012 shares of capital stock

>

Price—At

change

.

porate

Government

Country Club, Snappington, Mo. '

the selling stockholder.

per

New Y

S.

a

filed $643,800

American

& Mann,-Inc.,'New York.
share.
Proceeds—To reduce bank loans and for working capital.
-yfc "Shell" Transport & Trading Co., Ltd.
Office—Denver, Colo. " Underwriter—Paul C. Kimball
Jan. 14 filed depositary receipts for
8,000,000 units of
& Co.,/Chicago: Offering—Expected sometime in Janu¬
ordinary stock. Depositary—Irving Trust Co., New York.
ary. *
% V ' ,
■
• ,•
it Socony Mobil Oil Co., Inc. (1/31)
if Phillips Petroleum Co.! (2/8)
Jan. ,10 filed 4,379,758 shares of capital stock
(par $15)
; Jan..
16 filed $171,750,000 of convertible subordinated
to be offered for subscription by stockholders of record
debentures due 4987 to be offered for. subscripti^Vrby
Jan. .30, 1957 on the basis of one new share for each 10
common stockholders -of .record Fefc>.-7 ,dn,:the
basis * of
shares held; rights/to expire on or about Feb. 19, 1957.
$100 principal amount of debentures for each 20 shares / Price—To be
supplied by amendment. Proceeds — For
of stock held; rights-to expire on Feb.; 25,' 1957. Pyjoe— v
exploration and development costs and for plant expanbe supplied by amendment. Proceeds — To repay about
/ sion. Underwriter—Morgan Stanley & Co., New York.

:

26

cents).

Manufacturing Co.

r

'

U.

of

Texas Calgary Co.,
Abilene, Texas
Sept. 25 filed 3,700,000 shares of capital stock (par 25

-

[,$$6

Co..

principal amount (in
denominations of $1,850 each).. Proceeds—To retire
a
$55,000 mortgage; and erect new
clubhouse, etc. Under¬
writer—None.

•

.Price.—$10

&

of 1% first mortgage bonds due
Dec. 1, 1986, to be offered for
subscription by stockhold¬
ers of the Club.
Price—At 100% of

common

.

vertible preferred stock (par $5).

purchase

Sunset

—For

.

Read

are

for

Dec.

Price—45 cents per Share; Proceeds
•/'★ Security Electronics Corp.
/;
:
;
exploration and development costs and fp^/other
Jan; 11 (letter of notification)
263,750 shares of common
general corporate purposes. Offices—50 King St.,. West,
stock (par five cents). Price—$1
per share.
Proceeds—
Suite 1211, Toronto, Out., Canada, or 40-21
: To complete
design of an improved model of the Security
Bayside 61, X: I.,' N. Y. Underwriter—None.
Check Register (now in use); to purchase 500 such
units;
and for working capital and general
Peoples ..'Finance Corp.
;•
,/< •/'••/>".
corporate purposes.
Nov. >16 filed 50,000 shares of 60-cent
V Ofifce—589 Fifth Ave., New York. Underwriter—Foster
cumulative^ con¬
stock (par SI).

mon

Underwriter—Dillon,

selling commission will be allowed
to dealers for sales effected
by them. Elvin C, McCary,
of Anniston,
Ala., is President.
f

14 filed

York.

-

program.

writer—None, but

176,450 shares of common stock (par $25)
being offered for subscription by common stockholders
of record Jan.
3, 1957 at the rate of one new share for
each eight shares
held; rights to expire on Jan. 21. Price
—$28.50 per share. " Proceeds—For expansion and work¬
ing capital; Underwriter—Morgan Stanley & Co., New

.

Jan.

and

Bldg., Tulsa, Okla. Underwriter—Dreyfus & Co., New
York, N. Y. No general public offering planned.

Price —/ To be; supplied byamendment.
Proceeds —. To repay bank/loans and for expansion
nmgram. ^ Underwriter^-Eastmah
Dillon, UniofL Secu¬
rities & .Co, New/ York. /V;;/J'
%

shafts

one.new

to be offered in
exchange for the class A
Capital Fire & Casualty Co. and common stock
of Allied Investment
Corp. Price—$2 per share. Pro¬
ceeds—Fbr purchase of stock of
Capital and Allied firma

be; applied to" exploration, development and
acquisi¬
tion of additional
properties. Office -w 416 Enterprise

1, :1977;

Jan.

shares

may

20 filed $15,000,000 of subordinate debentures, due

Dec.

of

oversubscription privi¬

stock of

(par 25 cents). Price—At market (estimated at $8
.per-share). /Proceeds—To be added to general funds and

Bids—To be received
to. 8:30. a.m., (PST) on Jan. 22. ..•/,
/
Pacific Petroleums Ltd./ (1/22-23), y

basis

an

Southwide Corp.,
Anniston, Ala.
Sept. 12 filed 450,635 shares of common stock (par $1),
211,681 shares are to be offered publicly 238,954

/ stock

Inc.;-The First;Boston Corp.

the

on

(with

of which

,

Savoy Oil Co., Inc.
^ v
-Dec. 20 (letter of
notification) 37,500 shares of

by/company ""tip
•

struction

.

filed $35,000,000 of first and refunding mortgage
bonds, series-A A, due Dec. lr4986. Proceeds—To 'repay
short .term bank 'loans /and, for construction program.
Underwriter—To be determined by- competitive bidding.
Probable - bidders: Halsey,/Stuart & Co. Inc.; Blyth &

1957

Inc., New York.

Samson

Dec. 28

16,

lege): rights to expire on. Jan. 30,. 1957. Price-r$24.50
share. Proceeds—To repay bank loans and for con¬

Uranium, Inc., Denver, Colo.
Aug. 21 (letter: of notification) 25,000,000 shares of
capi-tal stock. Pri(?e---At
par (10 cents per share).1 Proceeds "
v—For core
drilling, including geological research and
/ core assays; for mining shaft; to exercise
purchase of
option agreement on additional
properties; lor working
capital' and other;, corporate purposes. Underwriter —
Indiana State Securities Corp. of
Indianapolis, Ind., for
; offering tq. residents pf Indiana.
/,
/

>

Jan.

14 shares held

per

;

.

record

for each

First Boston Corp., New
York; and Lester, Rvons & Co.,
Los Angeles, Calif.
/

Electric'Co^/il/22-v'

/..Pacific Gas &

Co.,

of

$20,000,000 qf/first

19 filed

pec.

'

m

Price—At

par.

Pro¬

ceeds—For investment.

United States Air Conditioning Corp.
Sept. 27 filed 600,000 shares of common stock (par 10
cents), of which 50,000 shares are to be offered to em¬
ployees, distributors and dealers; 50,000 shares, plus
any of the unsold portion of the first 50,000 shares, are
to be offered to the public; and the underwriter will toe
granted options to acquire the remaining 500,000 shares
for reoffer to the public. Price—At market prices. Pro¬
ceeds—For working capital and general corporate pur¬
poses. Office—Philadelphia, Pa. Underwriter—Mortimer
B. Bumside
& Co., Inc., New York. Offering-^Date

indefinite.

.

^

■

Continued

•

.

on

!

j

page

_

132

132

Continued

from page 131

Fund, Inc., Los Angeles, Calif.
(par $1).
^rice-—At market.
Proceeds — For investment. Underwriter—Vanderbilt Mutual Fund Management Corp., 453
Diamond

Venezuela

Mines,

Inc.,

•

Miami,

' Nov.

Fla.

Price—

»

•

Florida (name changed to

12

it

Hammill & Co., both of New York.

Co.), Miami, Fla.

Carolina Power &

Light & Telephone Co., Inc. (1/23)
Jan. 4 filed a maximum of 65,787 shares of cumulative

Oct. 15 it

convertible

between

Western

bonds.

bidding.

of

(no par) to be offered in units of a $400 deben¬
three shares of stock. Price — $500 per unit.
construction

and

the basis of

one

new

Price—At par ($100
bank loans and for

Southern

Central

Price—To

Hallgarten & Co., all of New York City.
indefinitely postponed.

Dec.

•'

the

-

Maine

Bank loans

:

have

been

yet

Daystrom,

$19,000,000 and $20,000,000.

gram

out.

Prospective Offerings

—Any

supplied from outside

•

Alabama Power Co.

(5/9)

Dec. 17 it was reported company plans to issue and sell
about $19,000,000 of first mortgage bonds. Underwriter—
To be determined by competitive bidding. Probable bid¬

I

1957

a

l-for-7 basis.

Chicago

•

„

Eastern

Illinois

RR.

ment trust certificates. Probable

Co.

Chicago,
(1/23)

of

Milwaukee,

St.

Paul

&

Stuart & Co,

"//
proposal to
subscribe for some

tentatively approved

stockholders

the

right

to

Proceeds—For expansion proexpected to cost $100,000,000 in 1957.

is

its

/

Registration

trust

4

Dec. 24 it

reported company plans to issue and sell.
$29,000,000 of fir^t mortgage bonds due 1987, Proceeds—To repay bank loans and for construction program. Un¬
was

derwriter—To

be

determined

by competitive bidding.
Halsey, Stuart & Co. Inc.; Eastman
T 33illon, Union Securities & Co. and Kuhn, Loeb & Co.
(jointly); The First Boston Corp.; Harriman Ripley &
3?robable

bidders:

Dec.

*

Co. Inc.

Bids—Tentatively expected March 19. Registra¬

tion—Planned for

Feb.

13.

Oct. 11 it

was announced

«jell $1,000,000 of 6% convertible subordinated debentures
due Oct. 1,1971 at par and 75,000 shares of common stock

<par $3)

$11 per share (the latter for the account
stockholders). Proceeds—From sale of debentures, for expansion and working capital. Business—A
at

of selling
'

iihort

haul motor

miles

-

or

routes

common

carrier

operating

over

3,30C

in Illinois,

-

,

574

28,

the

miles

from

a

FPC

with

Houston Texas

&

Oil

was

JXT.

Y.

Offering—Indefinitely postponed.

Baltimore &
J3ids

are

Ohio RR.

expected

to

be

(2/5)

received

bidders:

company

on

Feb. 5

for the purchase from it of $3,060,000
equipment
certificates dueannually from 1958 to
1972, inclu¬
sive. Probable bidders: Halsey, Stuart & Co.
Inc.; Salomon Bros. & Hutzler.

(rust

-

•

Bayless

Jan.T4 it

(A. J.)

was

Markets, Inc., Phoenix, Ariz.

reported company now plans to issue and
.sell about 425,000 shares of common stock. Underwriter
—H. M. Byllesby &
Co., Inct, Chicago, 111. "




V

i

/

Halsey,
&

7

said

the

the

management

capital

was

structure

come up

with

'

■
V
Assistant to the Presi-

f

working

on

plan ti]

a

and

one

that the company
issue of preferred stock

$18,000,000 will

investments during

foe put into cap
the fiscal year to end Nov. 30

'

M

Houston Texas Gas & Oil
Corp.) Houston, Tex.*
..the FPC authorized this corporation to buiU
94
"
miles of main
line-extending from the Mississippi

,.«

to

build

Rrver connection

Corp.'s

bama. and then

sys¬

of

Louisiana, Mississippi and Ala¬
across the Florida panhandle

peninsula to

-

Orleans, La.

announced company

a

to

cost

a

total

be Blyth & Co., Inc..
& Jones, Inc., New

~fnc" ^ *£ was reported
^00,000
around

south of

terminal

County, Fla., estimated
$94,28d,000.

Underwriters—May
^ai,1 ^lancisco> Calif.j and Scharff

Co., both of New York.
(3/5)

across

eastwardly

and down the Florida

is planning to issue
and sell $16,000,000 of first
mortgage bonds due 1987.
Proceeds—To repay bank loans
temporarily employed
to finance plant
expansion. Underwriter—To be deter¬
sey,

by the

clearing agent

Stuart & Ca Inc.; Morgan
Co., Inc., Kidder, Peabody &
Shields & Co.(jointly);: Equitable Securities
Corp. and Eastman Dillon,- Union Securities & Co
(jointly); Harriman Ripley & Co. Inc. Bids—Tentatively

ital

Underwriters—May

Columbus & Southern Ohio Electric Co.
Dec. 20 it

(par $5) on

-—

mined

,

Indiana, Michigan and Ohio.
Office—Grand Rapids, Mich.
Underwriter—Paine, WebIser,,Jackson & Curtis, Boston, Mass., and New York,.

thf

company is planning issuance
$20,000,000 first mortgage bonds. Pro¬

lw7.

*

Gas

Rouge Parish, La.

be Lehman Brothers and Allen &

that

approximately]

stock

reported

He added that close to

:

of

tem in East Baton

was

would like to

pipeline to cost approximately $54,589,000
point in Hidalgo County, Tex., to the point of

connection

it

revamp

Houston, Tex.
corporation

Under¬

and

dent,

v

this

basis.

be > offered

common

General Tire & Rubber Co.
Dec. 4, M. G.
O'Neil, Executive

bidders:

authorized

plans to offer to
$i 1,000,000 of

about

Ufor-10

a

expected June 6.

Halsey, Stuart &
Co. Inc.; The First Boston Corp.;
Blyth & Co., Inc.; Dil¬
lon/Read & Co. Inc.; Blair & Co. Inc., and Baxter, Wil¬
liams & Co.
(jointly); Glore, Forgan & Co.; White,

Dec.

corporation plans to issue and

Halsey,

tion program.- Underwriter—To be determined
by com¬

r

on

,

one

Stanley & Co.; Blyth

Co.

reported company plans to issue and sell
of first mortgage bonds in the Summer of

Coastal:Transmission Corp.,

Associated Truck Lines, Inc.

;

17

Probable

,

was

Weld & Co.

stock

To repay bank loans and for
new construction,
Underwriter--^To be determined
by competitive bidding,

Ry.

Illuminating Co.-

Probable

June

or

MerrMl

—

and sale of about

.

bidding.

May

'

company

in

»

Proceeds—To repay bank loans and for construc¬

petitive

in

common

Scott

about March

,

1957.

'

$45 per

—

—

hew share for each 15 shares
held on or
11; rights to expire on March 29. Merrill
Lynch, Pierce, Fenner & Beane acted as

RR.

"■;/

instalments.Probable
bidders:
Stuart & Co. Inc.; Salomon Bros. & Hutzler.

$25,000,000

Price

Richmond, Va. Underwriter
Richmond, Va. ..J.

previous offering to stockholders.
semi-annual :Georgia Power Co.•* (6/6)'
'<',

•;

rights to,

—

stockholders

the basis of

semi-annual

Nov. 12 it

Office

; are going to
647,000 additional shares of

equip¬
certificates, series L, to mature in 20 equal

Cleveland Electric

Appalachian Electric Power Co. (3/19)

new

Nov.

Bids will be received by the company up to noon
(EST)
on Jan. 22 for the purchase from it of
$4,200,000
ment

stockholders

General Public Utilities
Corp.
15, A. F.\ Tegen,- President, announced
stockholders

(CST)
equip¬

-

Underwriter—Hallgarten & Co.. New York.
*'•—Expected during latter part of January.

its

v

Lynch,.Pierce, Fenner & Beane and
.Kidder, Peabody & Co., both of New York."

Pacific

.

to

Bank

of capital stock at the rate
share for each five shares held as of Jan. 8
on1

additional

years.

:

offered

Florida Power Corp.
3 it was reported that

Halsey, Stuart

to mature in 30

intJ

45,000 shares

Jan.

Under¬

New Orleans, Texas & Pacific

'

(1/22) :

bank

for

National

l-for-5 basis; rights to
expire Jan.: 31.

22

Probable bidders: Halsey,,
Inc.; Salomon Bros. & Hutzler.

Cincinnati,

a

additional capital stock.

which

l-to-15

one

ceeds

Anaconda Co.
Dec. 27 the directors

f»ram

instalments in

this

share.

Bids will be received by the company up to noon (CST)
Jan. 23
for
the "purchase
from
it
of
$3,000.000

equipment trust certificates

—

26.

to

a

Inc.; Salomon Bros. & Hutzler.

■

Halsey. Stuart & Co. Inc. (jointly): Morgan Stanley &
Bids
Tentatively scheduled to be received on

offer

of

(1/17)

bidders:

9

Merchants

writers

later.

'

(2 6)

Underwriters—Merrill

&

subscribe

Co., Cleveland, Ohio.

March

*

set

on

Co.

Jan.

Bids will be received by the
company up to noon
Jan. 17 for the purchase from it of $1,980,000

&

Proceeds —- For additions and improve¬
Underwriter—To be determined by competitive

&

Price—To be

tridding." Probable bidders: The First Boston Corp. and
-

vote

on

$250,000,000.
ments.

on

writer—McDonald &

& Co.

American Telephone & Telegraph Co. (3 26V
19 the directors authorized a new bond issue

Jan.

(1/220

will

Co.

.

First

•

.

approving a rights offering of 125,000 additional
shares of capital stock to stockholders of record Jan. 16,

Halsey, Stuart & Co. Inc.: Eastman. Dillon, Union
.Securities & Co.: Equitable Securities Corp. and Drexel

Dec.

reported stockholders

was

,

Aircraft

expansion

on

ders:

(jointly); Lehman Brothers: Harriman Ripley &
Co. Inc. and Goldman. Sachs & Co. (jointly); Blvth &
Co., Inc. and Kidder, Peabody & Co. (jointly); Morgan
Stanley & Co.
Bids—Tentatively expected to be re¬
ceived on May 9.

it

10

Inc., Elizabeth, N. J.

Stringfellow,

it Central National Bank of Cleveland
Jan.

Inc.

Lynch, Pierce, Fern
ner & Beane and
Kuhn, Loeb & Co., both of New York!
Registration—Expected today, (Jan. 17). „•

Bros. & Hutzler.

mon

1

Un-

expansion program and working capital,
and R. W, Pressboth of New York.
1

Douglas

production..

(first to stockholders) may
be underwritten by Harriman,
Ripley & Co. Inc., The
Advance Mortgage Corp., Chicago, III.
First Boston Corp. and Coffin & Burr, Inc. Bidders for
Dec. 4 it was reported this company (to be surviving
any bonds may include: Halsey, Stuart & Co. Inc.; Blyth
•corporation following merger of First Mortgage Corp. 7'
& Co., Inc. and Kidder, Peabody & Co.
(jointly); The
and Irwin Jacobs & Co. of Chicago) plans a public
First Boston Corp. and Coffin &
Burr, Inc. (jointly);
offering of $1,000,000 class A 6% participating convert- 7
Harriman, Ripley & Co. Inc.; Merrill Lynch, Pierce,
ible stock (par $1). Underwriter—Baker, Simonds & Co.,
Fenner & Beane and White, Weld & Co.
(jointly); Salo¬
Detroit, Mich. Offering—Expected in February.
"

Freightways,

of facilities in order to place the DC-8
jet airliner

stock offer

common

program.

/
Nov. 19, Donald W. Douglas,
President, announced that
the company plans to sell about
$25,000,000 convert-,
ible subordinated debentures. Proceeds—For

It is esti¬

Underwriters

sources.

construction

18,

prich & Co.,

will be supplied from internal cash with the bal¬
to be

For

—

Proceeds—For

mated that $5,500,000 of the amount needed for this
pro¬
ance

5. to

Underwriters—Goldman, Sachs & Co.

outstanding at the year end totaled $10,500,expenditures for 1957 are now esti¬

mated at between

Feb.

on

Thomas Roy Jones, President, announced that
the company plans a public offering in near
future,
of about $8,000,000 convertible subordinate
debentures!

7.7/

worked

asked

21

Dec.

Construction

000.

Offering—

plans

be

long debt securities, to acquire six Eastern lines. Under,
writer—Blyth & Co., Inc., New York and San Francisco
(Calif ). " *';* **•••
/". Tv: • ,7 '

Power Co.

definite

no

will

it was announced company has
applied to the
Interstate Commerce Commission for authority to
issue
and sell 250,000 shares of common stock
(par $5)." Pro¬
ceeds—Together with funds from sale of up to, $8,436,740

construction.

"

Proceeds

Consolidated
Nov.

Bell

.

Stockholders

derwriter—May be determined by competitive
bidding.
Probable bidders:. Halsey, Stuart & Co.
Inc.; Morgan
Stanley & Co.; The First Boston Corp.

31, W. F. Wyman, President, announced that "while
expected to do some permanent financing

1957,

t

company

authorized issue of $125,000,000 convertible

an

debentures.

company

in

ikerwriters—Smith, Barney & Co.:; Giore Forgan & Co.
und

approve

Pro¬

share).

held.

stock

share for each

per
new

R. S. Dickson & Co.

of 20-vear sinking fund de¬
be supplied by amend¬
ment. -Proceeds — To redeem
presently" outstanding
first mortgage bonds, to repay bank loans and for exoansion program.
Business—Meat packing firm.
Un-

.

$20,000,000

be

Telephone & Tele¬
graph Co. In Lebruary, 1956, sold its rights to 14,464
shares (of a 66,640 share offering to stockholders) to

•

28 filed $20,000,000
1976.

on

H. R. Searing, Chairman, announced

15,

planning an initial issue of not to exceed $55,087,300 of
convertible debentures early in 1957, probably
of February. They will be offered to com",
mon stockholders for subscription at the rate of
$4 prin.
cipal amount of debentures for each share of common

bidders:

Underwriter—None.

Wilson & Co., Inc.
due

stock

reduce

V.
York, Inc.

15-year

was

common

ceeds—To

■

bentures

it

16

four shares held.

working capital. Busi¬
ness—Mountain recreation center.
Underwriter—None;
offering to be made by officers and agents of company.
Aug.

and

7..

•/

the latter part

Telephone & Telegraph Co.
reported company has applied to the
North Carolina P. U. Commission for authority to offer
to its common stockholders an additional 58,310 shares

ture and

'Proceeds—;-For

Probable

-

is

Carolina

Nov.

Corp., Boston, Mass.

Aug. 13 filed $800,000 of 6% subordinated cumulative
4ebentures due Dec. 1, 1976, and 6,000 shares of common
•stock

Dec,

reported company plans to issue and sell

$15,000,000

Power Co.

Consolidated Edison Co. of New

Light Co.

Underwriter—To

.

announced company will

was

writer—None.

-

.

Light &

*.

;

probably offer
early in 1957 some additional
common
stock, to finance part of its construction program. Under,

of first mortgage
determined by competitive
Halsey, Stuart & Co, Inc.;
Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc. (jointly);
W. C. Langley & Co. and The First Boston Corp. (joint¬
ly); Equitable Securities Corp.; Blyth & Co., Inc.; Kid¬
•
der, Peabody & Co. and Merrill Lynch, Pierce,, Fenner& Beane (jointly). Offering—Expected in 1957.
*

preferred stock (par S25) to be offered for
subscription by common stockholders of record Jan. 22,
1957, on the basis of one preferred share for each eight
'.shares of common stock held; rights to expire Feb. 6.
Employees may subscribe for any unsubscribed shares
up to and including Feb. 4, 1957.
Price—To be supplied
by amendment. Proceeds—To redeem 5Vi% convertible
preferred stock and for construction program. Underwriter—Dean Witter & Co., San Francisco, Calif.
Wildcat Mountain

was

.4

'v

/

to its stockholders

is ex¬

reported that early registration

was

27 it

'"•

*

Connecticut
Nov.

(Texas)

Co.

River Gas

pected of approximately 200,000 shares of common stock
this company, formerly Upham Gas Co. Price—Ex¬
pected to be about $5 per share. Proceeds—To selling,
stockholders.
Underwriters—Shields & Co. and Shearson,

February.

Hutzler.

&

re-

sometime

in

Inc.;

Co.

&

Stuart

Corp.; Glore, Forgan & Co. Bids — Expected to be
ceived on March 12. Registration—Planned for

of

At par (20 cents per share). Proceeds—For exploration
•ind mining operations in Venezuela. Underwriter—CoAlfred D. Laurence &

Halsey,

bidders:

Bros.

Salomon

Brazos

Aug. 31 filed 1,500,000 shares of common stock.

lumbia Securities Co., Inc., of

Probable

- years.

Spring St., Los Angeles 13, Calif.

So.

bidders:'

Bids

50,000 shares of common stock

filed

31

determined by competitive biddings - Probable
Halsey, Stuart & Co/ Inc.;. The First-Boston

be

—To

A-Boston & Maine RR.
•
'
are expected to be received
by this company late
In January for the purchase from it of $7,080,000 equip¬
to mature annually in l-to-15
' ment trust certificates

: *

Va.iderbilt Mutual

"Dec.

Financial Chronicle.-.. Thursday, January 17, 195-

The Commercial and

(328)

Hpbshman Factors Corp.,

by competitive bidding. Probable bidders: Hal¬
Stuart & Co. Inc.: Dillon, Read & Co. Inc. and The

Ohio

(jointly); Lee Higginson Corp. and Salomon
Bros. & Hutzler (jointly); Eastman
Dillon, Union Secu¬
rities & Co., and Glore Forgan & Co.
(jointly). Bids—
Tentatively scheduled to be received on March 5. Regis¬
tration—Planned for

Commonwealth

Feb.

5.

Edison

common

$6.80 per

February^eW

Co.

.

-

anc*

Offering—Expected in

Huntington National Bank,
Columbus,
Jan.

O.
stockholders of record
right to subscribe for "50,000 addition*1

9,

this

hank

Jan. 8.

1957

the

offered

shares of capital stock

and surplus.

1987.

Underwriter

Curtis.

*

no1** -or
23.

Price—$40

to

its

(par $20) at the rate of

Co.
(3 12)
Jan. 3. Willis Gale. Chairman, announced
company plans
to issue and sell
$50,000,000 of first

mortgage bonds due
Proceeds—For construction program. Underwriter

New York

company plans to issue and sell
stock.
Price—Expected to be
share. Underwriter—H. M.
Byllesby &

Shares of

*0U1 shnres held:
per

share.

Proceeds—To
—

one

rights to expire
increase

on

netf

Ja'1;

capita

Paine, Webber, Jackson &
...

185 'Number

Volume

5604

The Commercial and Financial

. . .

nijnois Bell Telephone Co. (2/26)
27 it was announced directors have authorized an
£sue of $40,000,000 first mortgage bonds, series E, due
March 1, 1988. Proceeds—To repay short-term borrown£s and for construction program. Underwriter—To be

Mississippi Power Co.

,

Dec. 24 it

nec

reported

was

plans to issue and sell
Underwriter—

•

National

Prichard, President, announced that pres¬
contemplate an issue of $6,000,000 of preferred
stock some time in 1957 if market conditions make it
feasible, and an issue of $8,000,000 in bonds in 1958. Tem¬
porary bank loans are available and probably will be
utilized, during at least part of 1957. Additional secu¬
rities will need to be sold in 1959 and 1960, amounting
to approximately $14,000,000.
Proceeds—To repay bank
loans and for new construction. Underwriter—May be
Lehman Brothers, Goldman, Sachs & Co. and The First
Boston Corp., who underwrote last equity financing.
;

of capital stock

21, H. T.

ent plans

Casualty Co.

Sept. 26 it was reported company plans to issue and sell
75,000 additional shares of common stock. Underwriter
—White & Co., St. Louis, Mo.
Offices—-Chicago and

Bloomington, 111.

reported company expects to issue and
$6,500,000 of first mortgage bonds. Under¬
writer—To be determined by competitive bidding. ProbaJole bidders: Halsey, Stuart & Co. Inc.; Merrill Lynch,
Pierce, Fenner & Beane and Kidder, Peabody & Co.
(jointly); Salomon Bros. & Hutzler; White, Weld & Co.
and R. W. Pressprich & Co.
(jointly); Smith, Barney
20 it was

sell in May

'

■■ .V.

Electric Light & Power Co.

it

Jan. 2

announced that cash required to

was

finance

construction program will necessitate the sale
of securities to the extent of $5,000,000 to $6,000,000. The
exact amount to be raised and the type pf securities to
be sold are now under consideration by the management.
the 1957

I

.

Kaiser

-

-Laclede GasCo.

on

"

-

portion of the
the Henry J.

and on increas-.
$25) by 400,000
has no immediate

★ Lone Star Gas Co.
was

announced

company

right to

the

shareholders

plans to offer to its
subscribe for a new

preferred stock in
each 40 shares of
stock held.
Price-^— Expected at par ($100 per
Proceeds—From sale of preferred stock, plus

issue of 154,834 shares of convertible
ratio of one preferred share for

the

common

share)..
funds

from

debentures,

sale,
to

construction

Corp., New

of
for
Underwriter—The First Boston

probably privately, of $30,000,000
bank debt of $20,000,000 and

repay

program.

York.

.

8, 1957 the right to subscribe on or

1957

for

$25,000,000 of these

on authorizing an issue of
debentures.
Price—To be named later.

Proceeds—For
forking capital and expansion program. Underwriters ehman Brothers and Goldman, Sachs & Co., both of

^ew York.

^
ine
.

sale of

months.

r1Ve
me.;

Edison

Co.

announced

.J

that

company

$22,000,000 first mortgage
-

Underwriter—To be

,

is considering

bonds in the

next

determined by competi-

Probable bidders: Halsey, Stuart & Co.
White, Weld & Co.; Blyth & Co., Inc.; Kidder, Pea-

Ridding.

°dy & Co.

share held.
capital and
Underwriter—Brown, Lisle & Marshall, Provi¬

surplus.

and Drexel & Co.

orp, Bids—-Not expected to




(jointly); The

be

First Boston

received, until May,

associates.

dence, R. I., and

Power & Light Co.

construction program. Under¬
competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; White, Weld &
Co.; Blair & Co. Incorporated; The First Boston Corp.;
Equitable Securities Corp. and Eastman Dillon, Union
Securities & Co. (jointly); Kuhn, Loeb & Co. and A. C.
Allyn & Co. Inc. (jointly); Kidder, Peabody & Co. and
Stone & Webster Securities Corp.
(jointly); Lehman
Brothers. Offering—Expected In March, 1957.

gage bonds. Proceeds—For
writer—To be determined by

v

New

Bids

York, Chicago & Si. Louis RR.
expected to be received by the

are

purchase from it of

Feb. 14 for the

trust certificates

Louis-San Francisco Ry.

St.

exceeding $61,600,000 of
series A, due Jan. 1, 200fv
154,000 shares of common stock (no par), and cashequivalent to the unpaid portion of the preferred divi¬
dend which has been declared payable in 1956, in earchange for its 616,000 shares of $100 par value 5% pre- ;
ferred stock, series A, on the basis of $100 of deben¬
tures, one-quarter share of common stock and unpaid
dividends of $2.50 per preferred share in exchange far
each 5% preferred share. The offer will expire on Feb.
25, 1957. Dealer-Manager—Eastman Dillon, Union Secu¬
rities & Co., New York. Exchange Agent
The Chase

Sept. 5 company offered not
50-year income 5% debentures,

New York.

Manhattan Bank,

Selberling Rubber Co.
Sept.

it

10

reported that the company plans

was

Proceeds—To

stock.

expansion. program, etc. Underwriter
Incorporated, New York.

for

long-

and/or issuance of additional com¬
redeem preferred stocks and

debt financing

term
mon

—

Probably

Blair & Co.

(2/14)
company on

$6,400,000 equipment

Probable bidders:
Co. Inc.; Salomon Bros. & Hutzler.

due in l-to-15 years.

^ South Carolina Electric & Gas

(jointly).

•

★ South Carolina Electric
Jan.

Pioneer
Jan.

Electric

Natural Gas Co.

7 it was

-

reported registration

,

is expected in Feb¬

$12,500,000 debentures, for public offer¬
ing early in March.
Underwriter — Eastman Dillon,
Union Securities & Co., New York.

ruary

it

14

of about

Erie RR. (1/24)
Bids will be received by this company up to noon (EST)
on Jan. 24 for the purchase from it of $6,720,080 equip¬
ment trust certificates to be dated Feb. 15, 1957 and to
mature in 15 equal annual instalments to and including
Feb. 15, 1972.
Probable bidders: Halsey, Stuart & Co.
Inc.; Salomon Bros. & Hutzler.
Potomac

1957.-

Edison Co.

this year issue
of senior securities. Pro¬
ceeds
To repay bank loans and for construction pro¬
gram. Underwriter—For any bonds to be determined by
competitive bidding. Probable bidders: Halsev, Stuart
& Co. Inc.; White, Weld &
Co.; Equitable Securities
Corp.; Kuhn, Loeb & Co. and Blyth & Co., Inc. (jointly);
Lehman Brothers; Kidder, Peabody & Co.; W. C. Langley & Co. and The First Boston Corp. (jointly). Offer¬
ing—Expected-in May.'
- • (
i \
.
. *
./

Dec

27 it was

announced company may

$14,000,000 to $15,000,000

,

4.

,

/

.

.

reported company plans to issue

was

•

„

& Gas Co..

and sell;

$10,000,000 of first mortgage bonds. Underwriter—To be
determined by competitive bidding. Probable bidders::
Halsey, Stuart & Co. Inc.;
Eastman

pected to be received until

next Fall.

Edison Co.

Southern California

>

(2/19)

Financial Vice-President, an-"
to issue and sell $37,first and refunding mortgage bonds. Proceeds—
E. R. Peterson,

27,

that the company plans

nounced

500,000

To help finance

Stuart & Co. Inc.f The
& Co. (jointly);

ders: Halsey,

Dean

Witter

Loeb

Kuhn,

received

construction program. Underwriter—To
competitive bidding. Probable bid¬

by

determined

and

The First Boston Corp. ami

(jointly); Kidder, Peabody & Co.;
Dillon, Union Securities & Co. Bids—Not ex-:
Brothers

Lehman

on

&

Co.

Feb.

First Boston Corp.
Blyth & Co., Inc.;'

Bids—Tentatively expected to be

19.

Co.

Southern

issue and sell
shares of common stock. Di¬
determine method of offering.
Underwriter—To be determined by competitive bidding.
Probable bidders: The First Boston Corp.; Morgan Stan¬
ley & Co.; Kidder, Peabody & Co. and Merrill Lynch,
reported company plans to

Dec. 24 it was

Co.
\
Sept. 12 it was announced company plans to issue and
sell $6,000,000 of first mortgage bonds.
Underwriter—
TO be determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce,
Fenner & Beane, Eastman Dillon, Union Securities &
Co and White, Weld & Co. (jointly); Equitable Securi¬
ties Corp.; The First Boston Corp.; Harriman Ripley &
Co. Inc.; Kuhn, Loeb & Co.Pennsylvania

l-for-10 basis.' Under¬
York. Registration

writer—Kidder, Peabody & Co., New
—Tentatively scheduled for Feb.

be

Hutzler

25

stock, first to stockholders oh a

Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stu¬
art & Co. Inc.; Kuhn, Loeb & Co.; Blyth & Co. Inc. and
Smith, Barney & Co. (jointly); The First Boston Corp.
and Glore, Forgan & Co. (jointly); Harriman Ripley &
Co. Inc.; Kidder, Peabody & Co. and Salomon Bros. &

construction, program..

Co. (2/25)

reported company plans to offer on or
about $6,000,000 of additional .common

was

Feb.

about

Dec.

State Electric &

was

it

14

Jan.

Gas Corp.
announced company plans to sell in the
Spring of 1957, $25,000,000 of debt securities and an
additional $20,000,000 in 1958.
Proceeds — To finance

Oct. 24 it

some

was

before Feb. 5,.

capital stock (par

additional shares of

50,000

$20) on the basis of one new share for each
Price—$75 per share. Proceeds—To increase

Pittsburgh & Lake

Macy (R. H.) & Co., Inc.
rvec 19 it was announced company plans to offer up to
$12,377,000 of convertible subordinated debentures to its
common stockholders on the basis of $100 of debentures
lor each 14
shares of stock held. Stockholders on Jan. 30

Metropolitan

this

15

Jan.

1,000,000 additional
Jan. 17 to

about

rectors to meet

Fenner & Beane (jointly);
Dillon, Union Securities &
Securities (jointly).

Pierce,

Eastman

Counties

Southern

Gas Co.

Lehman Brothers;'
Co. and Equitable

of California

reported company may

Jan. 7 it was

(3/5>

issue and sell about

$15,000,000 first mortgage bonds. Underwriter — To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart &

★

on

Lynch, Pierce,

March 5.

Southern Indiana

Nov.

Weld & Co.; The First

Co., Inc.; Merrill

Bids—Tentatively expected to be re¬

& Beane.

Fenner

ceived

Co. Inc.; White,

Corp.; Blyth &

Boston

.

^ul vote

& Hutz¬

Island Hospital Trust Co.
Bank offered to its stockholders of record

★ Rhode
Jan.

$5,000,000 of first mortgage

New York

will vote Jan. 24

Bear, Stearns & Co. and A. C. Allyn & Co. (jointly);
Blair & Co. Incorporated and Drexel & Co. (jointly);
White, Weld & Co.; Ladenburg, Thalmann & Co.

common

jointly); Glore, Forgan & Co.; Salomon Bros.
ler.
Bids—Tentatively scheduled for Feb. 4.

this

■

Brothers, Merrill Lynch, Pierce,
Reinholdt & Gardner (jointly);

and

ly); Blyth & Co., Inc.; The First Boston Corp.; Equitable
Corp.; White, Weld & Co. and Shields & Co.

New Orjeans Public Service, Inc.
Nov. 13, Edgar H. Dixon, President, announced that
company plans to issue and sell $6,000,000 of first mort-

of these securities. Underwriters—To
competitive bidding. Probable bidders:
(a) For debentures—Halsey, Stuart & Co. Inc.; Lehman
Brothers; Blair & Co. Incorporated and Drexel & Co.
(jointly); Stone & Webster Securities Corp. (b) For pre¬
<Sr Beane

Loeb
(joint¬

Stuart & Co. Inc.; Kuhn,

Dillon, Union Securities & Co.

,

any

stock—Lehman

was

Probable bidders: Halsey,

plans to issue and
bonds. Underwriter—
To
be determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co.; Kuhn, Loeb & CoM Leh¬
man
Brothers and Salomon Bros. & Hutzler ^jointly);
Eastman Dillon, Union Securities & Co. and White, Weld
& Co. (jointly); Equitable Securities Corp.; The First
Boston Corp.; Merrill Lynch. Pierce, Fenner & Beane.
sell

be determined by

Jan. 11 it

competitive

England Electric System

New Jersey

authorizing $10,000,000 of debentures

tenner

reported company plans to issue and sell
about $12,000,000 of first mortgage bonds due 1987. Pro¬
ceeds—To repay bank loans and for new construction.
Underwriter—To be determined by competitive bidding.

—

.

ing authorized preferred stock (par
shares to 880,000 shares. The company

ferred

by

May 28.

Halsey, Stuart &

announced stockholders

plans to issue

determined

be

plans to merge
its subsidiaries, Essex County Electric Co., Lowell Elec¬
tric Light Corp., Lawrence Electric Co., Haverhill Electric
Co. and Amesbury Electric Light Co., into one company
during 1956. This would be followed by a $20,000,000
first mortgage bond issue by the resultant company, the
oame of which has not as yet been determined.
Underfrriter
May be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb
& Co., Salomon Bros. & Hutzler, Eastman Dillon, Union
Securities & (£o. and Wood, Struthers & Co. (jointly);
Lehman Brothers; The First Boston Corp.; Equitable
Securities Corp.; Merrill Lynch, Pie.ee, Fenner & Beane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly).
Offering—Expected in first half of 1957.

Underwriter—The

of certain other assets.
First Boston Corp., New York.
or

was

on

New

;
;

through the public or private sale of a
securities of the companies owned by

Jan. 4 it

sell

new

To

—

(EST)

Stuart & Co. Inc.;

Industries, Inc.

Co.,

(5/28)

reported company plans to issue and

was

(2/4)

of Oklahoma

Service Co.

Public

Dec. 10 it

Securities

28, E. E. Trefethehj Jr.,

Kaiser

Jan. 25.
& Ross,

program.

bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First
Boston Corp.; Eastman Dillon, Union Securities & Co.;
White, Weld & Co.; Harriman Ripley & Co. Inc. Bids—
Tentatively scheduled to be received up to 11:30 a.m.

Executive Vice-President,
stated that it is anticipated that a portion of the funds
necessary to meet the $25,000,000 installment due April
1, 1957 on its 43,4% term loan may have to be provided
by the creation of debt by, or the sale of equity securi¬
ties, of this corporation or Henry J. Kaiser Co., or

Nov.

10 it

writer

plans to issue and

j \ /% -I-;-. -\V)-

-

share for each five

Also

Underwriter—For preferred
Dillon, Read & Co. Inc., New York.

construction

stock:

& Co. and Eastman

,

Kidder, Peabody &
Co.; The First Boston Corp.; White,. Weld & Co.; East¬
man Dillon, Union
Securities & Co., Salomon Bros. &
Hutzler and Merrill Lynch, Pierce, Fenner & Beane
(jointly).

one

rights to expire on
Underwriter—Leftwich
8;

retire existing

To

—

accrued and unpaid dividends thereon:

share plus
for

debentures. Proceeds—To make addi¬
tional investments in securities of subsidiaries.
Under¬

Light Co.

Sept. 12, it was announced company

bidderst Halsey,

share.

per

$15,000,000 of

sell $8,000,000 of first mortgage bonds. Underwriter—
To be
determined by.=competitive bidding.
Probable
1

Jan.

* National Fuel Gas Co.
Jan.

Jr., announced company plans
future to sell an issue of convertible deben¬

jersey Central Power &

|

on'the basis of
of

as

Proceeds

issue.

stock

$15,000,000 of bank loans and to redeem 225,000 out¬
standing shares of 3.60% preferred stock at $53.25 per

Sept. 12 it was announced company

Proceeds—For expansion program.

tures.

of

Memphis, Tenn.

27, Eugene H. Walte,

in the near

held

Price—$40

Lake Sulphur Co.

Jefferson
Dec.

shares

Bank

Jan. 3, 1956, it was announced company

Interstate Power Co.

•

of

preferred

Probable bid¬
Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce,
& Beane; Kidder, Peabody & Co.; Blair & Co.
Incorporated; Eastman, Dillon, Union Securities & Co.
and Equitable Securities Corp. (jointly).
Bids—Tenta¬
tively expected to be received on April 11.
Commerce, Memphis, Tenn.
Jan. 9'stockholders were offered 25,000 additional shares

Iowa

sale

the

plans

company

Fenner

Securities & Co. (jointly). Bids—Expected to be
Feb. 26. :
Indianapolis Power & Light Co.

& Co.

announced

was

$30,000,000 of* unsecured debentures and $15,000,000 par
value of a new issue of serial preferred stock.
Stock¬
holders
will vote
Feb.
20
oil
authorizing the new

received on

Dec.

it

8

Jan.

ders:

anion

Interstate Fire &

;

★ Potomac Electric Power Co.

(4/11)

company

about $6,000,000 of first mortgage bonds.
To be determined by competitive bidding.

determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Kuhn,
Loeb & Co.; Glore, Forgan & Co. and Eastman Dillon

Nov

133

(329).

Chronicle

Gas &

Electric Co. (2/26)

filed with the Indiana P.
application for authority to issue

16 the company

mission

an

S. Com¬
and sell

bonds due 1987. Pro¬
for construction pro¬
gram.
Underwriter—To be determined by competitive'
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Equitable Securities Corp.; Kuhn, Loeb & Co. and Salo¬

$5,000,000 30-year first mortgage
ceeds—To repay bank loans and

mon

Bros. & Hutzler

Incorporated;
Union Securi¬
Weld & Co.
(jointly). Bids—Tentatively ex-,
on Feb. 26. Registration
Planned _

(jointly); Blair & Co.

Kidder, Peabody & Co.; Eastman, Dillon;
ties & Co.; The First Boston Corp.; W'hite,
and

Shields

&

Co.

pected to be received
tor around Feb. 1.

Continued

on page

1J4-

134

(330)

The Commercial and Financial Chronicle...

,

Continued jrom page 133

of

4T«xam Oil Corp., San Antonio, Texas
Oct; 1 it was announced that the 1,000,000
shares of common stock,

Feb.

*■

Dec.
•

Blair

f

•

Dec.

was

announced

this

stock

public

a

★

record

bank

Jan.

15,

offered to its

1957

additional shares of

the

right

to

subscribe

stock

common

for

(par $5)

to

Secinmes^.Corp^ and-.Lee; Higgirison .Corp.- (jointly);.,

S.

r

.

share for each 16 shares outstand¬

one new

raise

Jan.

Dec. 27 it

about

$11,000,000

25.

;

"

"

'

-

$12,000,000)/ Pro--1

or

'

•

•

:

/

Underwriter—Greene

announced

was

company plans to issue some
securities, probably about $20,000,000

senior

1987.

Proceeds

—

Dec.

—

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Eastman Dillon, Union Secu-'

Offering—Expected sometime

105,000

★ Western
Dec.

7

it

Maryland

was

in

July.

.'"7

•

stockholders will

New

it

vertible

a

really

test of the situa-

severe

tion.

Notwithstanding
dent,

the

according

demand

ply,

was

insurance

;

a

bit

more

of

may

buying mood

some

than they were

a

months back.

But dealers reportedly find them
still ready to quibble over a few
basis points in "yield."
IMs

came to

Power

ana

fr

o^O-y^r

the

as

issue

I i^ht'o

bonds

had

million

to market

extremely
4%%

a

coupon

repriced for pub¬
to yield the buyer a

offering

returu of

slow

in

4.67% but proved
attracting

bit

a

interest.

The

"A** rated bond, in the
opinion of

potential

large

have been

real deal

a

yield basis.

buyers,

Most observers
view

this

on

a

&

complaint

In

the

current

however, they find
«««

w

much

so

ao

It

i

•

±

to

i

basis points makes

difference

when

spread

count

tended

that

m{?rket can take care.of itselF if
prlcing of new o£ferings is "right''

a

possible markup in the

on

to

Savings
slow

Bonds,

buyers

a

has

bit

for

week

afford

Placed

heavy rush of offerings

greeted

the

New

Year

?undmillion ^ hand, Some
up m
of

$425

new




corporate

-

a

same

tion

:

-

Cooper¬

atives to Sell Debs
The
are

trust

arrangements

issue

of

a

for

a.'tion

respite which the

new

is¬

collateral

market

debentures, the Cooperative

flow
is

assimilating
offerings, not that

of
any

evidence

indigestion,

some

The

about

$82

that

due

period,

bother¬

calendar

million

debentures

of

n

corporate

in

in

with

shows

bonds

the

and

market

Pacific

Gas

in
&

list

is

$35 million of first and

in

which

issues

should

,

of

"Street-size"

bring

....

out

plenty

of competition,

program

"

announced

Thref rallroad, eQulPment trust
a7°*f
$18.9 million
ro.^ld °ut th? debt security total,,

borrowing^ and"
lending operations ;
1

<>"

issue

new

/

Co.,

vjjje

Gas

equity

&

Electric

offerings

on

scheduling
a
"rights"

7

the

assistance

Looking Ahead

Providing,

..

.

of

in

-

-

corporate

some

time
is

continue
money

active

market

ahparl
ahead.

an

aggregate

of

well

$600 million in pending and

postponed undertakings that could
be

brought to market when

the

prospective issuers view the situation

as

satisfactory.

Topping this list
is

Consolidated

Edison

prospects
Co.

of

/30, :1956

the

'

/k',
/

.

17

"7V

-v

Cooperatives, under
ment

Act,

to

the

share

National

:

.

"

of

national

a

securities of

of

bank
or

for

in

ended

Nov.

reported

revenues of $39,common

on

or

$l,76jPer
Outstanding,

then

V'7'-J

/

/

/

'-/•• -•

,*

! *

'.

Price Change

/'

/

j/.

•

v

'"i

Spilt -

/Ratio
V isk i n g

C orp. 2
_

Western Auto

/

» _

Supply

,

'

tO

'

■■

Industry
/.Gronp

).

K+: 4

-5:,
'

2-4

/May 21
Apr. 13

;•

-of

"

:>/. /• '•Change/-

"Trading-

Jan»

.

2V2-1

:

.

Respective

"

;

3-1.

Market-/
Price ;/

.

3;

'6

r.--r

>4-41

4-12./

/
*

,*Unclassifiable.

,.

* /

7

;

'v /;

;,

7

.

the

surplus/'

RECAPITULATION

; *

7/

Net Average Change Up 13.
•'./
■
J.
V,/
Standard & Poor's Index .of 480 ..Combined
Stocks
-

Southwestern P. S. Stk.

Dow/Jones

Offer Underwritten by
Dillon,
^
an

Read

&

investment

Co.

..were

/.

rose

-

group

derwrit

shares

.

Li/? !,//

Public

r

Co.

/dlt'?nai
S®uthwestern
to
common

&

Co.

Inc.

dealer-manager
securities dealers
exercise

of

will
of
in

15 High

'

'

11.7%.

•

.

a

also

act

group

of

..

Grades, (of which
...

,-' "f

'

'

,

which 7

were

split),

were

split)^

3
•

.

declined—522,

tive

No.

subscription warrants evi-

of

.

issues

their respective

rights, expiring

or

.

"

unchanged.

out-performing remainder

with

the split

performance

' / ;i

"

"•

/

■

below

industry group—32 <40%

was equal—4.
'No. of issues not classifiable
by group—1,

the

■

■

"'7 '' '

remainder

of the

*•■-'.
"

,

of their respec¬

issues).

-No. of issues where
performance
,

.

55% of the un-split
;•'*/'

were

industry group—43 (54% of
split

*r

/: ■;

*'

.

No. of the split issues

/".

•-

.

*1% of the un-split issues

soliciting the

1957, to subscribe for the

•

issues.*

as

issued to stockholders.

Jan. 30,

.4%;^ the

No. of split issues that
advanced—50, or-62% of the split issues.
No. of split .issues that
declined—30, or 38% of the split issues.
Total NYSE un-split
issues advanced—419, or 44% of the
un-,split
/■'
issues. •••'
"
'
'

subscription warrants

dence preemptive

rose

stocks^ .•(of

0.79%; the D-J industrial^ (of which 5

2.3%; and S&P

Total NYSE un-split issues

stockholders and employes.
Dillon,
Read

Average--'of 65

=

"of

,

OArviii
Service

pMhii*>

rose

..

Composite

split); similarly comprising industrials/rails and utili-

ties.rose

Inc. heads

banking

at
/

the

maker;
of

months

$7,200,191

Admitted

/

amend¬

10%

/././..

'

Banking-

obligor

one

maximum

a

the

estimated

«•.:••"•'••'*

stock

New

of

•

/

c-

exempt from the statu¬
provision
limiting invest--

ments

:

12

on

Date

are

tory

to

a new

'•>.

••'/.

•

-

'■

4.'>
Continued.
////';'/-/-/

:

'

/;

./-

is

the /.company :

'

The

of

'

population

served

"

group of security dealers.
/
Debentures
of
the
Banks

Tr/apUa/tho?

things will

the

for
tor

prospec-

.

■

need

course,

For

in

area

r77'";/- 7,'/TV,7:7.'■//"'/.7-^/;r;„

nation-wide

a

Mexico.//The

two

; •

.of

^ecos- Valley

ex-/926.547, and .earnings

periods of

""

;6fc Texas and"
the/

construction total operating
the '

through John T. Knox," 130 Wil-;'
liam Street, New 'York
City/ the
fiscal agent for the
banks, with

Dillon, Read Group

'

J

•

<

-

■;//;.;/

-

principally in the gen¬
eration, transmission, distribution
and sale of/electric energy in a
territory which includes the Texas
and -Oklahoma;. Panhandle,
the

•

will ;be^^.offered/

,

Manufacturing and Louis->

■/'.

'

H

.

™lth.„Sa,wailan. Pineapple
Scovill

the

•

is engaged

of approximately $22., stock of

for

or.t""'"":/ /.•

on

^

•

75,000 kilowatts capability. //>>
£outhwestern /* Public
Service

of

improvements.

'

'

:

and/the ; 795,000. V t "-

costs

7

,

•

middle of this year of construction
of its new
Cunningham plant of

16,

addi¬

contemplates

750,000

^Proceeds will be,used to
commercial bank

bank's capital and

lssue® *or

and

'

improve--territory

further

about Jan. 22.

The

the

7.

'

,

fiscal years ending Aug. 31, 1958'
including completionabout the

14

each

Jan.

properties

toward

additions

ACF-Wrigley. Proceeds
principally for use by the parent

„

to

v.

its

to

Of* ">• The debentures.rate be#penditure
wiU
at
par
and .-.the.
,of

in

can use

•

-

share at

on

additions> nnd

balance

today

for

'

for

holders

give

and

of

newly formed )
plans to offer/

a

Registration—Expected shoniy.

,

per

share

®"nk. ^etrvi.c.e
the Fa™
Administrationo£ announced Credit ,:. Th e icompany's

be

■

right. to subscribe at the
price, subject to a subscrip¬
privilege
granted < to
em¬

$40,000,000 .-7— ments

consolidated

interest will

bring

$24.50

one

•

-

Hnaricing to ; repaV/$5;000,OOQ. of
Cooperatives/ bank loans obtained for construc-

13-Banks for

making

£/*7

allotment,
for
shares not taken
upon exercise of
the preemptive rights/; / >//. / '•
//The utility company/proposed

.

sue

There

The consensus in
market circles

ahich

will

tapering off of the pace
the past fortnight./And it will

over

lis that the

ahead

further

moment.

Well

.■

and

tional

meeting

a

offered
Time for Digestion

re¬

change in the dis-

rate, together with discus-

oi

return

however,
a

Banks for

month

basis.

be,

may

newed talk of

the

range,

it difficult

30 years.

over

sion

u

.03

ere

secu-

refunding bonds, due 1986, shap¬
ing
up
as
the
largest
single
undertaking. The balance of the

disposed to

were

at

1957

7j•

shares of

two

Co., "New York.

shares held of rectstfd

being asked to
total of $125 million
v

at

rate of

ployees

virtually all of the. new ones
brought out since Jan. 1, are hold-

The

the

to*

v

company, which may include individual locations,-warehouse sites and shopping centers.
Underwriter—Allen

6

stock

new

time in March,

early next month, i

the

4.70%

as
cutting
They argued
that some time back when
yields
were
ranging
from
2.60%
to
2.98%, it might have been under-

se

absorbed

Electric's

things "a bit thin."

standable.

which

would

<

a

securities

public

there
was

such

rities, is found in the fact that

the

The issue

of

back

issues, notably the debt

$1,000 bond.

lic

con-

could

are

extended

new

of

per

of

which

life

- came
an

buying

while
the
runners-up
bid
100.069% for the same rate, a dif¬
ference of only about 90 cents

rate'

Stockholders
authorize

■-

the

close

paying

group

some

Visible proof of the strength of

/

Bidding for the

been
for

$20

came

successful

100.1399%

big

light when

during the week.
with the

•:

1 who

those

companies

.

evi-

now

closely, that the

into the picture after

Major institutional investors

million

in excess of the sup-

especially

absence..

enormity

it is

to

watch the market

be in

$55

debentures

reach market

of this outpouring,

•

York's

-v.

|

-

ACF-Wrigley Stores,. Inc.,

ties stock for each

-.^gl

issues reached market which made

'

-

announced; tins company,

of

—To- develop locations'

'7

Feb.

vote

Inc.

stock, debenture and option holders, the offering tostockholders to be on the basis of one share of
Proper-!

'

Ry..

announced

was

•

share.;

its shares of capital stock for subscription by the latter's

&

Co.; Kidder, Peabody & Co. and White, Weld
& Co.
(jointly); Lehman Brothers; The First Boston
Corp.; W. C. Langley & Co.; Harriman Ripley & Co. Inc.

of

6 it

l-for-4

a

per

Ladd, Dayton, Ohio.

Properties,

subsidiary

be determined

rities

&

7

Wrigley

To repay
Underwriter
To

construction,

issue.

175,0~0(f additional shares of capital stock on
basis; rights to expire on Jan. 30. Price—$22

■

of first mortgage bonds due
bank loans and for new

the basis

on

for

additional

company

stock

stockholders

common

-

plans

West Penn- Power Co.

Valley National Bank, Phoenix, Ariz.
16 the

>

of Feb. 25. Price—To be named by company (suf-'i

as

ned

—

Proceeds—Together with a loan of about $6,000,000
from motion picture exhibitors, to be used' for
working
capital and other general corporate purposes.
Jan.

.

-^rp.>/>:>/77

,

privately-owned
to

_.

—

★ United Artists Corp.

giving active consideration

,

,

reported company plans to issue and sell
^ab'out/$10,000,000 of first mortgage bonds in- the Spring.
v
Underwriter—To be determined- by competitive
bidding.
"•
Probable bidders/ Halsey, Stuart & Co. Inc.; Equitable.

Western Pennsylvania; National Bank
/ 7«>>>
N6v/ j.|»4t /was reported Bank; plans to offer-to its stock¬
holders; 132,812 additional. shares of capital stock. on a1
ceeds
For construction program and: to
repay bank /
l-for-s&' basis. Price—$30 per -share.
Proceeds—To inloans.
Underwriter—To be determined by competitive /
/ crease
capital and surplus. Office—McKeesport, Pa.
bidding. Probable bidders: Carl M. Loeb, Rhoades & Co.;
The
lirsc
Boston
• Winters National Bank & Trust Co.
Corp. and W.. C. Langley & Co.
(jointly); Lehman Brothers and Goldman, Sachs & Co..
Dec. 3 it was announced Bank plans to offer to its
stock¬
(jointly). Bids—Expected Feb. 25. Registration—Planholders'on or about Jan, 15 the right to subscribe for

ing

ficient

White,
Weld & Co. and Stone & Webster Securities
Corp. Bonds
previously were placed privately.
Jan. 9 it

Massachusetts Companies

was

'

reported that company plans to sell some
additional preferred stock and bonds in order to raise
part of the cost of its $110,000,000 1957 construction

is

Earle

company

in the ratio of

was

preferred

1

-re-

Thomson;. President,/ announced that : Blyth & Go. Inc.; Blair & Co.. Incorporated; Coffin
8c I
to issue additional; common stock // Burrt
Inc./The/First Boston Corp. and»White, Weld &
(about 528,000 shares) for subscription by stockholders ?• Co.
Qtrthlly)'//
>"•' / * . -

the

(jointly).

For

27,

/Dec. 17 it.

Electrie:.Cc^2£2^^^^

West Pen»t

Western

.

L^ch,

Securities & Co.; The First Boston

★ Transcontinental £as Pipe Line Corp.

—

Co* Incorporated

and. Baxter. & Co. (jointly);
Pierce/ Fehiief & Beand and Stone
Webster Securities Corp; (jointly);. Kidder,
.Peabody; &
Co.; Equitable Securities Corp.; Eastman Dillon/Union

Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co. and
Merrill Lynch, Pierce, Fenner & Beane
(jointly); Hemp¬
hill, Noyes & Co. and Drexel & Co. (jointly); The First
Boston Corp.; Eastman Dillon, Union Securities &
Co.;
Kuhn, Loeb & Co., Blyth & Co., Inc. and Lehman Bro¬
thers (jointly); Harriman Ripley & Co. Inc. and Stone

Underwriter

&

Merrill

was announced company expects to sell new
securities during 1957 to obtain capital for its
continuing,
plant expansion. Underwriter — For any bonds, to be *
determined by competitive bidding/ Probable bidders:/

program.

ePi^the ^^callS>&^r

71£i

.

Jan. 2 it

Jan. 8 it

12, Everett J. Boothby; President, ^announced that^

the company expects to- rais<> abpiit^O^*
the -sale-of first mortgage: bon$s^ some-.time

writer—Dillon^ Head & Co., Inc., New York.

Securities Corp.

first

.

$40,000,000 from an existing bank loan
Proceeds —For expansion program. Under¬

& Webster

cumulative non-callable

-

and

Texas Electric Service Co.

plan tcvoHer,the;holders of the dutstand-

a

-shares

,

additional

Corp. -■
Jan. 16, George T. Naff, Vice-Chairman, announced that
•corporation expects to secure an additional $100,000*000
through issuanec of senior securities and possibly equity
agreement.

approving

on
-

and

surplus/ -Underwriters—William^.R. : Staat?/^preferred sfock/(par $100.)'$100'of new 5%.% debentures
& Co, and Blyth & Co., Into'>,.>:.>• ,77to:.;7to,/
/.due to 17.1982, and one share of new callable 5% first
Lierht
> / '
7. preferred stock (par $38) in: exchange lor- each present;

Eastern Transmission

securities

held; rights to expire
share:>. Proceeds—To increase

1.- Price—$26 per

capital

recently authorized by the di¬
rectors, will provide the company with the additional
working capital it will require for further expansion.
Texas

share for each 12 shares

one new

on

Thursday, Jamiary 17, 1957

of

split issues).
,

-

•

1957

Hvolume 185 Number 5604

T

Commercial

. . .

Chronicle

Indications of

vThe following statistical tabulations
latest week

Business

Activity

week
Latest

Indicated steel operations (percent of capacity)

T.(n

Week

9n

£98.3

*u

~~

Equivalent to—Steel infeots and castings (net tons)

;

Jaa

month available.

or

month ended

or

Previous

Week

IRON AND STEEL INSTITUTE:

AMERICAN

Month

Ago

*98.4

that date,

on

§2,517,000

AMERICAN PETROLEUM INSTITUTE:
Crude oil and condensate output—daily average (bbls
of
42 gallons each)
——
Jin
Crude runs to stills—daily average (bbls.)
~~
jL'i
Gasoline output (bbls.)
~~
——-Kerosene output (bbls.)»____i_
""
Distillate fuel oil output (bbls.)
"""
T»n
Residual fuel oil output (bbis.l__^__A_ r
~~~~
"Tjan
Stocks at refineries, bulk terminals, in transit, In pfpe'llnes—
Finished and unfinished gasoline (bbls.) at—
.ii»
Kerosene < bbls.-) at——_—
——
.

in

or,

of quotations,

cases

are as

of that dates

Latest

99.0

2,525,000

either for the

are

BANK

DEBITS—BO ARD

2,437,000

GOVERNORS

OF

Previous

Year

Month

Ago

102.6

♦2,519,000

production and other figures for th#

cover

Dates shown in first column

Y^ar

Month

Ago

OF

FEDERAL RESERVE SYSTEM—Month

THE

.,0

135

(331)

thousands)-

oi November tin

$185,207,000

$193,140,000

$173,190,000

$27,884,812

$25,235,912

$17,391,205

121.633.524

119,710,777

96.749.983

30.956,562

35,899.804

37.999.862

87,526,427

108,670,922

93.502.174

»

BUILDING

PERMIT

VALUATION

DUN

—

&

——

7,416,700
1

7,392,350

*

7,353.200

0,395.000

7,865,000

8.020.000

28,209,000

28,176.000

27,237,000
2.885, rOO
13.193,000

27,179.000

.2,899.000
•

Distillate fuel, oil (bbls*) at*—

r~~

;

Residual fuel oil (bbls;) at—

:

l^o

Central

1.

—

.

South Central

nm

74.577,168

73.323.093

63.024.694

West Central

27,755,208

39,656,257

26.630.649

Mountain

27,295.395

31.920,975

17,673^34

92,174.770

95,5173231

76.394,283

$489,803,866

$529,934,971

ftrtf-

145.550 000

107,269,000

42,649,000

♦43,755,000

39.719^000

487.546

737,757

611.299

523,646

42,731.000

no~

f

664,223

*587,508

561,519

cars'—Jan"

ot

"

527,274

>.'■

Total

in

~

..

$376,052,000

JJ.

r

~

—______

"",

$323,736,000

$528,078,000

$461,828,000

144,768,009

372,307,000

222.265,000

178,968.000

155,771.060

239.563.000

166,108,000

'

209,944,000

—-----Zjan^lO
an, 0

r-——

United States
"

York

New

f

132,697,000

138,390.000

122,812.060

40,578.000

32,959,000

and

lignite (tons)
anthracite (tons)—

♦5.100.000

10,640.000

9.270,000

326,000

*351,000

609,000

498,000

94

112

226

94

12,220,000

11,594.000

55.764.815

373,601.569

$50,700

$50,100

$45.«0O

415,008.191
DEPT.

—

SERIES—Month

NEW

(millions

71,355,000

7,460,000

MERCE

167,708,000

77,247,000

BUREAU OF RUNES):

York City-

BUSINESS TNVENTOBJES

COM¬

OF

of

$429,366,384
"

72.251.619

457,683,352

74,795,675

City.

Outside New

—

derjSnd mUnicipat~

Pennsylvania

31.7ra.'wi

134.809.000
-

^

COAL OUTPUT <U. S.

Bituminous coal

South Atlantic

8,595,500

135.427.Ono

'

Middle Atlantic

"

ENGINEERING

____

England

Pacific

3i.l94.ono

'

CONSTRUCTION

Total: D.S. construction
Private construction
Public construction

"

2.444.080

13,501.000

8,360,000

185.796.ono

132.942,(HMF

Jan

NEWS-RECORD:

F

9,004.000

186.808,000

—Jan

Revenu? freight received from connections

.

14,565,000

CITIES—Month

of November:

New

East

-

ENGINEERING

-

0,745,000

'

ASSOCIATION OF AMERICAN RAILROADS:
Revenue freight loaded -(number of cars)
CIVIL

'2,746,000

14.468,000

•

U

BRADSTREET,

7.026.450

ti 8,290,000

_

October

dollars):

of

Manufacturing

"T"

jan.'

5

DEPARTMENT STORE SALES INDEX—FEDERAL RESfeRVI
-SYSTEM—*947-49 AVERAGE =100
Jau

;'

13,100

•13.000

12.200

23.400

23.300

$87,100

*$86,500

$80,900

$1^590,232

$1,735,723

$1,693,051

1,038.408

976.252

9213292

551,824

75*471

77 L 759

430,995

641.801

666.704

120,829

117,670

105,055

13.338. (W)

•13,448.000

13.487.000

7.795.000

•7,758.000

7.829.00#

5,543.000

•5,69<LOOO

5.658.000

107.8

•108.7

109.0

167.9

168.8

163.8

17,127.000

•17.222.000

17.052.000

10.015.000

•9,960.000

9.864.000

7.112,000

•7,262.000

7.188,000

$3,280

Wholesale

5

23.300

$2,634

549

525

963

981

581

$4,792

$4,140

$3,679

$29.314

•#28.7^8

$95,659

21,423

•21.398

19,697

*$50,106

$45l356

28.235

jan

•27.624

26.637

$30,839,000

$30,768,000

$30,559,000

$332.6

•1329.5

$311.6

230.2

•228.5

215.3

10O.3

•99.1

93 3

60.6

•60.5

31.0

30.8

28.9

38.3

38.1

36.4

——

-

Retail

—_

Total

•

$

5

„

INSTITUTE:

ELECTRIC

EDISON

Electric output
FAILURES

(in 000

A

AND

BRADSTREET, INC

Finished steel

DUN

—

'

(E.

&

J.

M.

JaB

:

(St.

222

8
8

$62.90

$62.90

$63.04

$60.83

$63.50

$65.17

5.622c

Louis)

35.525c

9

jan,

9

Jan.

>.

.

at

9

U. S. Government

5.174r

-35.700c

43.450c

34jOOOC

45.650c

13.000c

16.500

33.450c

16.000c

9

9

14.000c

9
g

Jan.

:

^ '

9

All

__

14 000c

14.000c

100.500c

90.30

:

13.500c

13.500c

108.125c

106.750*

37.98

88.76

95. H

95.16

95.32

Industrials- Group

—

J

—

——

indexes (1947-49

manufacturing

Payroll indexes

Avge.= 100)—

—

Average==l00)—All

(1947-49

manufacturing
Estimated number of employees in

Jan.lo

All

manufac¬

manufacturing

96.38

107.44

Nondurable

98.57

109.4:

95.77

»

96.38

107.4

5

89.09

So. 16

IO0.6

97.16

97.16

108.71

—

PURCHASERS—INSTITUTE

INSURANCE —Month

of

107.8

-

95.32

*.

LIFE

OF

Oct.

(000's omitted):

;

'

'

goods

INSURANCE

LIFE

102. JC

94.&6

96.54

'*

9C 63

93.82

•

• ;

96.23

-

—

Durable goods

110.7k

97.62

94.12

—

of

—

goods

100.32

93.04

-

8K.81

Jan, 15
Jan. 15

——

Ail

22.500*

99.500c

95.47

I

SERIES—Month

(production workers)-;

•uarturing

Emoloyment

13.500c

25.060c

-

}

25.000c

07.47

____________

DEPT.

S.

turing industries—
t:

jap. 15

^

PAVROIIS—V.

AVI)

LABOR—REVISED

m»

"

.

$

Group—

municipal

Nondurable

16.300c

-

99.36

Group

and

Durable goods

'

.—Jan. 15
—

15.800c

14.010c

25.000c

-

at

15.800c

-

*

13.500c

"».in

-Jan.

:

)

~

16.000c

-

15.600c

jan.

Bonds;.

Average corporate

■>a

State

—

November:

35.575c

**

33.575c
;

-jan.

—s

——

cprlmbr." iMjl -99'*

Utilities

5.622c

OF

.

;,T.

r,.

$53.67

Jan.

^

;

construction

S59.0f

8

5.622c

'

Straits tin (New York)

Public

co«strtw*ion

245

QUOTATIONS):

:

of

omitted):

construction

tMPIOYMFVT

MOODY'S BOND PRICES DAILY AVERAGES:

Railroad

249

Jan.

(delivered) at——
Zinc (East St. Louis) at--

m

256

*.

Jan.

____

tZinc

Aluminum

10

jan.

__

Lead (New York)

Lead

NEWS-RECORD —Month

(000's

S.

U.

Public

.Electrolytic copper—
Domestic refinery at—i_;
Export refinery at_,—

f

December
Total

-

(per lis.)——

METAL PRICES

11,671.000

EN¬

—

'

Pig iron (per gross ton)—
Scrap steel (per gross ton)__.

1

12,327,000

A

;

IRON AGE COMPOSITE PRICES:
•

Jan. 12

.

INDUSTRIAL)

CONSTRUCTION

ENGINEERING

GINEERING

kwh.

(COMMERCIAL

CIVIL

Industrial

J
*

MOODY'S

YIELD DAILY

BOND

AVERAGES:

'

1

-

'

'

1

U. S. Government Bonds_:

•

Average, corporate

•

Aaa

i

^

:

j.

*

__

-

•.

s

A

Jan. 15

-4.04

n.

—

K •"*" v L'.

AVERAGE

-

r-

-

15

-

15

5

"

-

'

*

-•

(m

3.4*

4

shares—

of

1

r

VV

3.93

4.05

'

3.2£

3.S3

•.

'

3.2

439.2

435.3

»

Dollar value

l

5
5

$+75

-

n454,359

110.78

Odd-lot purchases by dealers (customers'

Kondur&bles

327,486

264,364

275,418

182,195

>

'■

'

•'*♦52

95

92

451,288

658,1*2

'

•*419,408

HONEY IN CIRCULATION—TREASURY

109.62

110.61

107.54

of Oct.

As

"

Number*of

orders-—Customers'

Customers'

short

Number of

■

Short
k

Other sales

Number

of

11,372

1,043,S95

$52,588,609

$51,258,402

$42,504,110

$52,104,771

Dec. 22
—lT3ec. 22
Dec. 22

281,890

270,350

181.420

270,356

181,420

Dec. 22

446,220

474,340

466,070

386,900

-

RALES

ON THE

N

Total round-lot sales—

ROUND-LOT

TRANSACTIONS

FOR

OF

Total

of specialists in Stocks in
purchases

544.540

517,230

Other

sales

11,383,590

12,042.060

9,522.850

11,801,430

12,586,600

10,040,030

Short

»

sales

Other

„«*.
——

Other

transections Initiated off
Total purchases

the

floor—

■

22
22
22
22

1,492,610

1,724.210

1.276,540

328.230

272.520

230.980

1,131.440

1,2613210

1,3G5,650

1,^89,440

307.433

,

-

.

••

All
commodities!;—
Farm products-

,

"*

969.640

1,212.090

1,443,070

Meat

381.420

243,990

340,120

28,740

20,600

207,370

238.390

342,600

227,970

307,150

than

*Revls<*d

as of

Tin

»

■

f)»tire

li'Jt

*inriiide«

■'}

i

»

\

at 3 Q(,n
I*

1

lutrrclfi

362.960
69.100

126.780

474.140

413,258

599.331

667,219

562.170

482.338

726,111

22

2,362,705

2,679,375

1,883,490




animals

•245

239

164

167

195

249

238

225

$278,000,000

$278,000,000

$281,000(000

276,627,527

277,016,953

280,768,553'

93,828

53.060

$276,730,757

$277,110,781

$280,821,613

455,995

474,030

—

336,300

445,000

362.220

at

any

amount that

be outstanding

may

time

*

Outstanding—

public debt
Guaranteed obligations not owned by

Total

376,520

gross

the

2,536,880

22
22
22

1,973,979

2.049.210

1.589.668

2,494,210

1,951,888

Total

2.099.6

2,310,279

2,476.331

gross

teed

public

debt

obligation*
outstanding

and

guaran¬
i—^—

-

Deduct—other

public debt

obli¬
—

*

455.077

-

"

*

116.4
88.3

116.0

*116.3

86.8

*88.5

total-outstanding,
*--»■Balance face amount of obligations, issuable

111.7

under

84.6

103.5

*103.7

103.2

80.7

78.7

71.6

124.7

*124.6

124.5

119.9

crude runs.

above

$276.275,680

$276,654,785 $280,347,582

1.724,320

1,345,214

652,417

$276,730,757

authority——1-

$277,110,781
5.777,774

$280,821,613
4.544,518

$271,333,007

$276^77,095

93.5

80.3

§ Based on new annual

capacity of 13^.459.150 toes

DIRECT
GUARANTEED—(OOO's omitted):

UNITED
As

STATES GROSS

090

tons

tNomber

Dee.

31.

1656.

«H» days «ded M A 195T.

East

«. Louis

DEBT

AND

of Dec. 31

Oenerai Tunds

balances

of orders not reported, since introduction of

10A 163

•«

"W

264

i-As

690.190

88,630

584.129

*——Jan.
of. fore tin

272

GOVT. STATUTORY DEBT LIMITATION
of Dec. 31 (000's omitted):

U. S

.

.

235

1033229

573.745

83,090

Jan.
foods

443

236

231

Dairy products
Poultry and eggs.

582,665

tL

farm and

453

277

—

18,760

313.860

127

443

230

—

Wool

19,000

**

...

other

227

141

277,410

-——-2auJan.

Mea ts

commodTtles

249

154

gations not subject to debt limitation,

L

2

Processed foods
All

189

262

crops
-

Tobacco

1}. 8. DEPT. OF

T'

i_

220

232

fresh.

vegetables,

Grand

-

„

225

218

:

grains and haygrains

Livestock

LABOR —(1947-49= 100):

Commodity Group—

167

232

258,410

Dec. 22
22
22
22

-

■

178

Total face

Dec,
Other sales
...—^—Dec.
Total sales
1
—————— Dec.
Total round-lot transactions for account of members—
Total purchases
—-——
Dec.
Short sales
———
Dec.
Other sales
J
———
——
Dec.
Total sales
——:
'
—Dec

WHOLESALE PRICES^ NEW' SERIES

278

182

1,241,560

"

——

—

208

270

1,556.570

234,210

-—

Short sales

222

270

4—

—

;

Potatoes

Drc- 22
Dec. 22
—■—-Dec, 22
—Dec. 22

-

sales..

229

232
203

products

Oil-bearing

the floor-

Totql sales
1

234

FARMERS — INDEX
OF
AGRICUL¬
of Nov. 15:

UN)—As

234

farm

Food

MEM¬

DocD'-c-—Dec.
—Dec.

296.9

DEPT.

Fruit

which registered-

I

BV
S.

17.4

•314.4

Feed,

12,531,866

-

on

U.

—

18.7

316.8

———-—

264

12,042,721

;

initiated

27.9

Cotton

489.14C

—

RECEIVED

Commercial

417,840

Short sales
Total sales
Other transactions
Total purchases

30.0

18.9

Crops

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS: "\

Transactions

49.1

239

AII

—--Dec. 22
—Dec. 22

ACCOUNT

7^

•50.9

30.2

payments

TURE— 1910-1914=

"3

!

5 3

73

51.9

,

and dividends

income

•

NUMBER

:—DCc. 22

Short sales

;

5.9

6 0
7.4

nonagricultural incoine

PRICES

EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
ACCOUNT OF MEMBERS (SHARES):
*m-

sales

interest

56.7

In¬

for special

income-

transfer

Total
Total

FOR

Other

contribution

'

labor

Proprietors and rental income

Y. STorn

Total sales

-

306,676

?

—

—

surance

Other

306.671

231,390

—

total—;
industries——

receipts,

—

employees'

Less

6,552

Dec. 22
Dec. 22

814.355

—

—

dcafers—

TOTAL ROUND-LOT STOCK

1,050,447

5,434

1,055,460

V

—

shares-.

825.727

1,060,894

4,481
1,033.089

—-

?.

Rouncj-lot purchases by

$58,484,761

$58,844,058

STATES

income.

salary,

Distributing industries
Service industries

Personal

shares^-Total sales.

sales

$64,101,832

1,090,709

1,119.047

-pec. 22

—

1

Round-lot sales by dealers—

1,087,570

Dec. 22

—I—

—

$62,131,961

i,250.967

and

UNITED

COMMERCE)—Month

Of

billions):

Commodity producing

Government

Customers'ether sales^-;
Dollar value

1,231,451''

;

total; sales

sales—

(in

personal

Wage

,

DEPT.

(000's omitted*—

31

INCOME IN THE

PERSONAL

Total
,

•

$50,737

of October

Dec. 22
sales)—1

^

Durables

IDEPAFTMFNT

———' Dec. 22

^_r_——-

SERIES—

405.1

\
Jan. 11

I

a.

1

NEW

Inventories—

"

Number

rOMMERrW,!

or

4 WEPT,

Month of October !millions of dollars):

3.6!

•♦222,250"

11102,280

STOCK TRANSACTIONS FOR ODD-^LOt ACCOUNT OF ODD
LOT
DEALERS AND SPECLALrsTS ON N. Y. STOCK*
EXCHANGE — SECURITIES EXCHANGE COMMISSION:
Odd-lot sales by dealers (customers' purchases)—)
" '

WANTEACTURER'S INVENTORIES AN1> SALES

3.31

4.37

♦'303,228

U135,504

6

!

—!

■

-

546

r

.

Jan.
Jan.

——.

—

INDEX—

PRICE

-

.

"32H-

v.

3.98

■■

,

3.97

3.99

434.9

Jan.

period

REPORTER

4.02

I

*1—-

—

.'•

3.U

.3.84

4.15

4.06

-

.

>

Jan.
—

'

■

4.48

Vr

32)1

3.73
*

-

Total

"

-

at end of

DM)

=

Z

—

Percentage pf activity-—

W4!)

an.
J(t

T_—

NATIONAL PAPERBOARD ASSOCIATION:
'
Orders received ( tons)_■
r_^i—
«f.
Production (tons)
—i__!

Unfilled orders f tens)

.

_

MOODY'S COMMODITY INDEX—

OIL, PAINT AND OICUG

v

"
„

2.37

3.98

3.90

4.13

.'fas. 15
:

-

4.50

Jan. 15

Industrials Group

^

-

3.91

Railroad Group
Public Utilities Group-

3.42

*/

3.31

3.79

.

.

,

4.05

,—iJan. 1-5

j;

i.

3.50

Tan-15

V-

i?—x——

.

>

—Jan. 15

;

.

_

Aa /

3.30 :1
4.06

-

Jan. 15

•_

A

$2,552
:

Net

debt

"Computed annual rate-

——

—~

4,427.373

$272,303,384
2.671*4

2.643 7;

2 49C4

The

'■

(332) ]

33G

&

Yol'k

nounced!

Stock

that

an¬

Haslam is

G.

with

the firm

Industrial

the

of

manager

search

Exchange,

John

associated

now

By ROBERT R. RICH

as

BREAK ALL RECORDS

TO

THIS YEAR

Re¬

Department.

increase

in

increase

further

a

national income,

in

The 8-page

Securities

National

by the staff of the

forecast is prepared

Securities and Research

the

.

the

nearly $300 million.
The forecast,

National

Corporation, which sponsors and manages
Series of mutual funds with assets of

j ; .
which also envisions record levels of construction
.

.

.

and

equipment outlays as the basis for a higher Tate of business
activity in 1957, sees these-as adding to inflationary pressures.

Continuing international tensions
factors,

vLYCLL

y

also cited as inflationary

were

{'"'VY >

•*,

"The threat of inflation will again

restrictive

Reserve's

eral

fiscal conservatism
out

sizable

tax

.•'

be countered by the Fed¬

credit

policy and by at least enough
the part of the Federal Government to rule

on

cuts," the study declares.

employment, it points out, the indi¬
billion increase in expenditures for goods and services

would "add

incorporated mutual fund

significantly to inflationary pressures" and the prob¬
"will again be to contain the boom."

lem of government
pro¬

viding diversified, managed investment in
Canada. For free prospectus mail this ad to

This

study

substantial

increase

in

the

the
influencing

national product,

gross

discloses,

after analysis of the major factors
elevate it to $430 billion for 1957, as compared
to the $411 billion estimated for 1956.
the economy, would

BULLOCK

CALVIN

In its outlook for

Established 1894

,

industrials, the "Forecast" predicts that sales,

again expected to move upward in 1957. The prediction:
income of $660 million compared to $600 million in 1956.

in 1956, is
net

necessitated substantial outlays for new
in 1956
billion.
Net income for the telephone industry should increase to $925
million, $125 million more than that recorded in 1956.
Gross
revenues, also expected to advance, should reach $7.3 billion in
1957, $1.1 billion over 1956.
Discussing the re-election of Eisenhower and the legislative
program; the study states that the President, in his State of the
Union message in January, will call for increased defense expendi¬

and dividends for almost all industries ranging from
agricultural equipment to tobacco would undergo increases with
but one exception: certain segments of the non-ferrous metals
industry. The motion picture industry along with baking and
milling, meats, leather goods and heating and plumbing materials

growth has

"This

plants," the survey explains, with $1.6 billion being spent
and planned expenditures for 1957 expected to total $1.9

the mutual security program. The
continuance of flexible price supports
and the soil bank program for farmers, and he will seek legislation
for a four-year program for Federal aid to schools.
and

tures

Name.

Address.

were

With the demand

again

points out,
half of

money

1957, with

Consumer

For Income

for funds by

expected

to

exceed

He

will

slight easing

credit

was

depressed

remaining

TRUST
A Boston-Type
Mutual Fund

Prospectus and Literature
from

in

1958 will show increases in both expenditures and
In view of the tight budget, the study says, the Presi¬

revenues.

will

dent

and

quence
a

a

as

rising $3

of existing tax rates on personal

some

tax relief for small business may

195G

Product

National

Gross

National

Income

7% rate increase

billion to

$45

Disposable Income

*

.

rising and

as

a

conse¬

sought for immediate relief and

maximum of 15% on certain commodities

equal 100.

tial

sold several

This

realized.

accomplished

was

year

common

were

princi¬

pally in the earlier months of the
East

42nd

York

NATIONAL

Street

17,

N.

when there

year

was

period of

a

Y.

DISTRIBUTOR

generally rising stock prices.

Y/■/1

1)0 don Wirn d

Se¬

curity profits amounted to $192,791.68

after

making

provisions

for Federal, state and local taxes.

Massachusetts Investors

per

Incorporated

tributions

from
37

and

and income.

share

30
re¬

ir

portion

of

the

proceeds of security sales were
reinvested in selected preferred
stocks

and

instances

which

bonds

afford

yields than

on

in many

greater
the common stocks
even

which

they replaced. The trustees
of the fund, as a consequence, in¬
creased
the
percentage
of the
portfolio allocated to fixed income
securities

in

the

on

reached in
The

of Oct. 31, 1956
in preferred

as

contained 22.2%
stocks

as

against

year

earlier.
at

the

rates

interest

two decades.

over

portfolio

capitalize

to

order

highest

only

14.6%

a

hold¬
current

Common stock

close

of

the

fiscal year were reduced to 70.8%
from 74.8% 12 months earlier.

Covering all classes of

Bond Fund

is to

OF

without

o

BOSTON

specific

relating to the shares of any of these separate
investment funds may be obtained
from authorized dealers or

from

VANCE, SANDERS
111

dealer.

The Parker Corporation

Berkeley Street

Boston, Mass,
'




purpose

or

possible GROWTH

fully managed

Mutual Investment Company ;

seeking long-term
CAPITAL GROWTH

m

DEVONSHIRE

6i

YORK

Kro«ulivay

Prospectus from

COMPANY

Tlie

CHICAGO
lio

your

local investment deal

er

or

STREET

BOSTON

.

NEW

&

South LaSaile Street

LOS
Zio

ANOET.ES

West Seventh Street

50

Key stone Company ol Boston

Congress Street

the 1

expanding Canadian Economy

each

on

investment

investment

a

For RESERVES, INCOME

A prospectus

available

ofC anada, Ltd.
A.

securities, eack Fund witli

principal*

prospectus

ey stone JL'um

—

rfw:
mlNCOMb
•

Fund

ey stone

Custodian Funds

whose

nd
ve

'

years.

substantial

*

Canada General Fund

Fund

200

of

source

per

,

GROWTH of

LIMITED

your

with dis¬

Century Si tares Trust

possjl'1®

tor

„

is

this

cents

A

ings

compared

cents

securities

of

fund

share basis, the

fund villi a

J

A

as

119.0**

1925-

,lished

[

share

cAetssachusetts Investors rTrust

lestors

a

security profits amount to.42 cents

Growth Stock Fund

,

Translated into

118.5**

:

116.2**

**Annual averages. Years

fiscal

18th

whicn substan¬

security profits

1

AY 147** '

spectively from the 1954 and 1955

1956 indicates that
on

22.0*
12.7*

Y

report for the fiscal

holdings

31.5*

"

114.2**

%

Trust " Fund's

the trustees

297* '

•

:

143**

Lexington Trust Reports

stock

•

12.5* A

Wholesale Prices

ended Oct. 31,

;

21.5*

Consumers'Prices

Lexington

337*

30.2*-

___________

Industrial Production

annual

of America
New

286*
—

Corporate Dividends

1947-49

352*

.

' y325*.-'

____________

Corporate Earnings
•

430*

339*

:___

:

•«*In billions of dollars.

was

minor

,1957

.

411 *

______—_____

/ Personal Income :

INVESTORS PLANNING CORP.

60

excise adjustments and

be requested and enacted.

Specific estimates for a few of the items covered in the 1957
following annual average trends:

"

"The cost of most materials is

a

but

income,

Farm Income

:

later rate advance to

for maintenance

ask

corporate

in the second half.

seen

envisioned

1956.

It adds:

for the fiscal years ending June 30, 1957

The Federal Budget
and June 30,.

continue tight for the first

Plunging into the wages and railroad rate problem, the survey
maintains that expected authorization of rate increases
by the
ICC will be a requisite for
satisfactory results for the railroads
next year. The prediction was that net income for Class I railroads
is expected to rise $15 million to about
$890 million from $875
million

sustain

stability."

the survey adds, are estimated to reach about $12.7 billion in 1957,
or about 58% of estimated net
earnings for that year as compared

$12.5 billion in 1956.

the minimum
workers as part of a longr
balanced
economic growth and
the extension of

and

areas

"to

program

range

the financial strength of the nation's corporations,
the "Forecast" says that the net working capital of these com¬
panies in 1957 should rise to $115 billion, up $5 billion, while net
earnings should move upward from $21.5 to' $22 billion. Dividends

to

programs for

law to additional unprotected

wage

Apropos

INVESTORS

call for various health programs,

also

aged, public housing and highway construction, aid to small
business, natural - resource development, assistance to the few

billion by the end of 1957.

GENERAL

a

the

both public and private bor¬
savings next year, the study

and credit should
a

also urge

Forecast indicate the

expected to remain unchanged.

rowers

continuation of

a

President will

revenues,

ONE WALL STREET, NEW YORK 5

natural gas, which established another record

The demand for

Under conditions of full
cated $19

.

$1.4 billion in 1956;

about

employment and production
prices of goods and services was
predicted by National Securities & Research Corporation in its
special year-end study, "The 1957 Forecast."
An

and

—A U. S.

1957

a more equitable rate of return
account currently being realized."
The outlook for utilities is more optimistic.
Electric energy
sales of Class A and B systems, which represent virtually 100%
of the privately owned companies, should increase to a new peak
total of some 515 billion kilowatt hours, a gain of about 7%, while
operating income should advance to $8.4 billion fiom^ $7.8 billion,
and1 net income should increase to about $1.5 billion in 1957 from

Mutual

City, members of the

York

New

Thursday, januaiy 17,

than around

26 Broadway,,

Hickey,

New

... .

requested to help establish
4% on property

is

With Vilas & Hickey
Vilas

Chionicle

Commercial and Financial

(

.

Boston 9,

M

t

,

1957

j

Number 5604

185

/olume

137

(333)

The Commercial and Financial Chronicle

. . .

turn
ed."

ATOMIC INDUSTRY TO GROW FAST IN 1957

-rgy

Newton I. Steers,

00%
>eak

the year

ing

lion,

to the atomic industry, future progress, accord¬

Most significant

(1) the U. S. Navy's 1957 budget providing
atomic cruiser, six atomic submarines in addition to
nine in earlier budgets, and funds for advance procurement for an
eight-reactor atomic aircraft carrier, (2) Great Britain's announce¬
ment in December, 1956, that she will build a total of 17 atomic
power plants (to include at least 25 reactors). The cost will ex- '

Investment

funds for an

tion:

new

1956

ceed $134

lion.

v.

'

The

expanded British program, according to Mr. Steers, will

atomic industry, but does assure
a substantial lonr-range demand for Canadian uranium, since
it,
is estimated ,that the first seven British atomic power stations,
alone will require a uranium metal inventory of about 4,400 tons,
equivalent to an ore requirement of approximately 5.6 million tons
little business for the U. S.

mean

itive
the
ndi-

The
)orts

of ore

grading 0.1%.

•

..

mall

few
num

continued

for

Also

1957

H

and

•I?

resi-

onal

eign reactor-construction. Resulting in part from the Suez-inspired
oil shortage, France, Italy and Germany are expected to follow

Britain's lead in contracting for and planning large-scale power,
reactors. The cumulative effect of these programs will be further
to increase the value of uranium stocks of companies with sub¬
•

,

,

■

.3

.

,

of

1957

Business

Activity

_

said that, despite

approximately that level
States and munici¬
palities have growing needs for
To
schools, hospitals and other public
""Business activity is currently
buildings. Such projects by vari¬
at its best levels and gives indica¬ ous
departments of government
tion of being well maintained dur¬ serve to augment business volume
ing the coming months," Joseph and, where long-range in their
at

through 1969.

Stay High

I

Fitzsimmons, President

M.

vestors

669
at

shares

new

warrant

the

$17.76 each.

:

due

was

of

in

of

price

1956

'

A

in the
"For

reflects
incomes, unsatis-

"The demand for goods
record consumer

there

tion's

general economy.
the;' long-term

is

reason

to

economic

outlook,

expect the na¬

progress

to

con¬

tarded

the

were

ferred
many
t e r

a

rise

force

financing

in

to

and

necessary

In

certain

automobile

produce

the

goods

to maintain and imDrove

such

areas

industry,

"Further into the future, a huge

rustees

in-

pf

the

of the investing
nationwide program of highway public,and put them to work-in
construction is scheduled to com¬ sound investments, thus infusing
~pw
rqpital into American en^1mence
in 1957.
Expenditures are

stocks

ce,

sign of having been re¬

as our living standards, requires a
reduced continuing increase of capital ex¬
operations of the past year pave penditures, and therefore of in¬
the way for an improving rate of vestment funds. It is the function
of the investment community to
production.

costs.

the

:

by

the

Income

expected to increase each year

gather the funds

to prise."

italize
rates

more

market

6%

a

Business Shares

hold-

urrent

70.8%

A

ier.

Fund

supervises a portfolio balbonds and preferred stocks
for stability, and common stocks
for growth possibilities.

Company
ar-il between

The
•

Balanced Investment

%

selected

selected

Prospectus upon

request

Group, Incorporated

Wall Street, New York

5, N. Y.

Z

.

accumulated in

performance

lliese

figures,

increase

of

Dec. 31 from

_

snow

$36.17
$34.64

been

ne^

,

.

,

cash anci

or more.

■,

SOVEREIGN

senior

in the portfolio at

$76jl69>322

corporation's
and
preferred,,

t7ie t0^ai claim of the

debentures

INVESTORS

weu

_

above the $58,597,000 representing
own

Free of

m

r*l i

a year

the

earlier.

cf

share

on

in a
diversified
of securities selected
possible long term
growth of capital and

Offi^wc "R'l^Lr

income.
Send for FREE Prospectus

v

■

year,

as

will

feet

account

such

■

the tax on their behalf,
Randolph also pointed out
that the per share asset figures for
1955 have been restated to make

trusts'and Estates""

Mr.

with

comparable

1956

principal amount
of
debentures
outstanding, and
$361.18 for every share of its $2.70
preferred stock at year-end, the
Chairman stated, compared with
$15 3<H and $320.65 at the close

assets per $1,000

Confirmation
Randolph

said, the emphasis of the corporation's investment portfolio con-:
be

from

common

hold

shifted- giadually
stock to bonds and

to

preferred stocks
end,

common

'

.

,

75.50%

of

compared

.

made

stocks

with

77.82%

Denver

3, Colorado

Principal Underwriter for

Financial
Industrial Fund

Lnj

Capital
Accumulation Plain

and Estates"

FIF

of such

Systematic (Monthly)
Investment

Plans

(Optional with group life insurance)

funds. In the first 118stocks iust
+funds acreviewed,
common

as

year

a

trust

the

Broadway

investments in common trust

__

assets

that

study in the same issue

"Trusts

of

up

,

,

950

W cofo/n™ to'
ve% substantia? amounts

from

and, at the year-

investment

Continued OKI jytlCje 138

.

FULLY-PAID

Lord, Ahbktt




—

& Co.

Atlanta

—

Los Angeles

PA.

CORPORATION

S

ther conclude that 1957 will be
™?*her. good year for the stockholdei in dividend payments.

^^55

tinued

BLDG., PHILA. 10,

FIF MANAGEMENT

Personal( and informational conmth financial
officials furthe trust my^estment officials fur-

$17,213 of

had

LAND TITLE

'4'

11 usrs ana estates.
Opinion is about evenly divided
fig- that corporate earnings will hold
or decline in 1957. From their

ures

Tri-Continental

845

s£
fvor ?r
' hut aircraft
manufacture also rates high, acf.0^. to £he symposium pub-

gain for the.

wili pay

them

;

.

..

stockholders and.

the

„

£

•

conservative opinion of
5« b£t th(?.best kfn°V" tr"st inYfst"
J1?
officers pf banks throughout
be •»«<>».thls 18
to scut"
Ce cither rapimon stocks-or inJiples of diversification both by
tXFes
security and industry,
91'8' s ee|,s a.n£, J tie8 LanJ.

the corporation is no

take

of

from your Investment
Dealer or

—

GEORGE A. BAILEY & CO.

_•

•

4.-

tu

T

eliminates need for this provision

inasmuch

•*».

tv«

ail(l I JlVerSlIlCatlOll

unrealized appre-

effective- this

i

-

I^UIIIIIIUII

investments.

Code,

Tax

in¬

group

•

The new
amendment to the Internal Revenue

FUND

for

A 1 u®1

per

figures, Mr. Randolph explained, are stated exclusive of
any provision for possible Federal
tax

MUTUAL

vesting
'

pt*

—

of

Pennsylvania Personal Properly

A

comp?ring wjth $61,654,006 a

and

sn

$30

amounts of

share at

per

For the first time,

to

year.end

stated, is af-

Sciid,

fie

*

,

Gf

securities held

share after
exercise of all warrants.

assuming

..j

,

va}ue

the past

in

has

assets

The build-up, he stated, raised

£i

.

be

Shares may

and the dependability of/
its income has been improved."

up

was

During the year, Mr.

d

63

creased

for assets per common

0f

American

1956
r r e

Distributors

ON REQUEST

investment dealer

in-"

tinental'?

-

longer required to pav a capital
needs and desires,for a vari¬ tinue. However, a strong national
ety of products, and a willingness economy requires balance between gains tax for its own account on
to acquire them.- Industry's plans productivity
and consumer de¬ appreciation realized on1 the sale
of investments but, instead, in effor expansion and modernization mands. To utilize a growing labor
show little

from your

systematically

ptfjfied

1955

quality.

PROSPECTUS

A

stability of the value of Tri-Con- '1

accurate
picture
of
Tri"'"Continentals
better-thanA
A.

activity and

62-year-old investment manage¬
corporation, comments.
-

ment

year

and preferred stocks have
built up," he added, "the

bonds

sharply from 252,083 in 1955.. > Jt\

income

ment

selected for their invest¬

•

\

fixed-income

of

holdings

been

stock

common

exercise

"As

The number of new

issued

shares

ciation

ations in construction

growth

through common stocks

as

entirely, he explained, to the issuance during the year of
1,138,-

of In¬ application, aid in leveling fluctu¬

Diversified Services, Inc.,

investing

and

,

of 1955.. This

at the end

*eai'j i? Chairman
forded

peak rate in 1960, and to con¬

tinue

the

during

income

for

stock

attractive

ingly

\

by comparing the figures

a

A mutual fund

expansion of busi-.

activity

ieVel

Inc.

Incorporated 1933

appreciation of the market
value of investments, assets per
common
share
outstanding
de-

expected in 1957 is an extremely rapid increase in for¬

stantial reserves.

linor

Group Securities,

the tightening money market
forced interest and dividend rates
on
bonds and preferred stocks
higher and, in many cases, above '
clined to $45.26 at Dec. 31 from the
dividend rates on common
the comparable figure of $49.44 stocks.
Mr. Randolph

During 1957, Mr: Steers

•

v

v

s

OF

inherent in

risks

FUND

STOCK

and the advanced
prices. There was
the
further
consideration
that
senior securities became increas-

ness

stock issued oil oxer-

common

in

THE COMMON

the

ongr

and

at

cise of warrants.,

predicts the passage, of compromise
legislation which will call for additional power reactor construc¬
tion by both government and industry. This program, which Mr.;
Steers believes will cost as much as $250 million, indicates a large
volume- of orders for U. S. reactor builders and component manu¬
facturers,; beginning in late 1957.
7'
"
.

if

increase

the

1 ;%*

.%':/•'%//

ition

for

the

the end of 1955
included about $13,000,000 in appreciation
of
investments
and
$20,000,000 in new funds received
$278,027,599

ments as

in

The increase from the

President.

components, radiation instruments and uranium fuel ele¬
well as substantial business for naval shipbuilders.'

reactor

'ross

billion.

preferred stocks were increased
primarily; he said, using new
$310,999,768—highest reported in funds
received from
Tri-Conthe 27-year history of the nation's tinental
common
stock issued
largest' diversified closed-end in- upon exercise of warrants.
vestment
company,
it was an"Investment emphasis," the
nounced today by Francis F. Ranchairman' stated,
"was
shifted
dolph, Chairman of the Board and moderately more in recognition of

Navy's plans will result in an accelerating demand for

The

$925

and

bonds

of

Holdings

earlier.

Tri-Con-

of

assets

tinental Corporation rose $33,000,000 in 1956 to a year-end total of

to Steers, were

ing
cord

n

just passed indicate that the atomic industry will grow

rapidly in 1957.

more

even

rom

$33 Million to $311 Million

predicts that a number of significant developments dur¬

Fund, Inc.,

hile

Tri-Coiitiueiital Assets Gain

Jr., President, Atomic Development Mutual

.

;

CUMULATIVE PLAN
w.

Mutual Investment Funds
•

•

(Automatic Dividend

Bond Series

Balanced Series
I

•

Preferred Stock Scries

% Income

1

Series

would

Stock Series
1

I

Dividend Series

Growth Stocks Series

Information Folder and Prospectus on Request

NATIONAL SECURITIES & RESEARCH
.

,

*

CORPORATION

EilablUhed 1930

120 Broodway,

New York 5, N. Y.

to

receive

a

,

|

|

j

FIF Investment Plans.

!

■

J

Name

i

i

|
•

like

Booklet-Prospectus about

-

1

%

j

Reinvestment)

Address

!I

City—_—

1|

j
j

State
R-7

<

i
II

138

The Commercial and

(334)

Continued

from

importance

137

page

of

industries

such

T¥\¥/'W\.'A-ccptc

for

exactly half of all
holdings and preferred
for another 10.4%, based

stocks

1956

on

This

reports.

preferreds

in

the end of 1955.
The tabulation lists the 518 dif¬
ferent

found

stocks

common

bank-administered

these

'

Business is doing more and
long-range planning and is

more

less

$300 Million

sensitive

short-term

to

'

ups

Total

Diversified

of

assets

net

Securities

j
.

Total net assets of the

Nationall

Securities Series of mutual fundi
crossed the $300 million mark for
This was the first time in their 17-year his,
Optimism among economists
are reducing the impact of moderan
increase of nearly $5 million tory,
that high
Henry
J.
Simonson
business activity will
Jr
ate
business
readjustments
on over total net assets of
$58,109,164 President of National Securitiescontinue through 1957 may mean
&
consumer spedning.
at the 1955 fiscal year-end. " Net Research
that the "boom or bust'' theory is
Corporation,
sponsors
X4) The banking system has asset value per share on Nov. 30, and managers of the
at last becoming outdated, accord¬
funds, arr
been
strengthened to the point 1956, 'was $8.95 as compared to nounced. At the close of the
ing
to
the December ~ issue of
mar.
"Minutes," published by Managed where it can be a stabilizing in-r the 1955 figure of $9.27. After ad- ket last Friday assets Aggregated
fiuence, rather than an aggrava- justment for the ,1956 r security $300,177,287, add compared
Funds, Inc.
r
j-4
with
In its annual summary of in¬ tion of business declines as for- profits distribution of 40 cents per $283,786,512. at the close of
the
'
formed opinion on business pros¬ merly.
share, this represents an increase last fiscal year on. April 30, 1956.
(5) The growth of expenditures id value of eight ments per Share
pects for the immediate future,
The total number of the
funds'
"Minutes" reports "broad antici¬ for services, of government
pay-- for the fiscal year,
r
> %
shares outstanding alscl
increased
pation" of still another year of ments, and expenditures of ; all1;; *
Total jncome ."dividends of>4039,633,792 ;on
high business activity.
1
types, has increased broad i areas
Cents per share were paid -during-:Aprib30."last,, while the number
Such optimism, the investment' of stability within the
economy.
" 1956_the same- as: the
amouiik;9t-^reownersrose to; approxicounselors of Managed Funds be¬
"The results of these
changes distributed the year before. N ^1'
mately ,117,090, from 107,182.
lieve, "raises again the auestion can be seen in the last two
jf
busi- ■;>
"The sustained growth in assets
of whether our postwar economy ness
readjustments," .the study
,.Nfw
0
^ of the National Securities of muis not indeed outgrowing the busi¬ sums
up.
: ; :
ness
cycle—the 'boom and bust'
0Ver thc
"in 1,54, a drop in
capital goods
on'
theory."

at

funds

such

Cycle

and

May Be Over

compares

with 48.6% in commons and 11.5%
in

(2)

Boom-Bust

Assets Over

To $58 Million

of them.
*

security

National

Up $5 Million

as

electronics, natural gas,• jrm.0.0
etc., reducing the effect of a pos¬
sible downward trend in any one
aviation,

Mutual Funds
counted

Financial Chronicle.. Thursday, January
17,1951),

in

funds,

which provide diversification for
individually trusteed accounts of

Investraent Fund> inc., were $63,-

downs.

034,316

(3)

Longer term wage contracts

on

Nov. 30, 1956—the end

0f the Fund's fiscal year.

■

a

thousand

few

$100,000.

to

The

-

.

study also records the number of
bank funds holding each stock.
.

4 Because
natural

is

water

asset

greatest

our

is

and

—

:

so

.

often

taken for granted that population
and

industrial

real

dangers—a series of "depth"

studies

growth

can

create

is

being published to
plore this subject from both
socio-economic

-

ex¬

.T

the

investment

and

T.

sultant

firm

Porter
issue

of

Sanderson

'

"Trusts

If true,

&

and

variety of

water usage

ments also

locale
as

of

well

the

to

imposed by changes in

industry

and

culture.

investment

consumers^

,

.

rejJ,;

it

S

*

Thes^ op-

*. *

emen ts whichmre

^

nf,ri?Snngr„:,0i
wmv

ago.

number

i

b"nging G aa
g r

u2
which

billty

basic

of

nation's

"Minutes,"

economy

are

said to

wihch

lists

them

as

(1)

The substantial increase in

(Indiana), Niagara Mohawk Power
g
on
Company;■ '.West,r Penh
Electric'
Company,
Seaboard
Air ■ Line
Rahroad Company, Granite City
•>'' Iakhr
^knrtaoA
steel Company and Inland Steel' v
- Labor Mortage
Company.« Common stocks sold.
A■
possible labor shortage of 23

u
should

11 yu

..

stocks

long-term investments.

as

Commonwealth

x

,,

-

"

Power

Com-

on

as

compares

the

of

date

same

Dec.

with
a

Company, Southern Pa- cago; .Citing estimates of
Company,
United
States-national product of $850

1956.

On

31,

$107,100,000;-

tries

1956

was

a

estates for satisfied

©

yourself

while

you

through

—

building

are

clients with

are

located in

foreign

sonal

coun-

and

colleges, schools,
profit-sharing plans,

and

.Consistent

with

the

company's

policy of broad diversification, its

in

25

at

the year-end conindividual securities

industry

follows:
*

every

as

sisted of 336

You will receive top commissions.

classifications

Bonds—18.0%,

as

preferred

will

get

help

from

Area

our

Manager

66.9%

in

building

industry holdines were
14.0%, electric utilities 9.8%,
and chemicals-drugs 5.8%.
,

profitable business in your own community, plus continuous

.

Commonwealth, during its 24th
year

devote

can

all

handle all routine,
If you

time to productive selling,

your

an

top

very
more

Some of

did before.

ever

a

our

representatives

All

are

building

are

Most

share

among

are

personal

up

higher

overall

have

out

how you

more.

Call

have this

can

or

write

6ame

profits-

after

despite declines

earn

was

a

income,

was

while

542,455. The increase for the

auto-

a

paid from capital gains,

a

*

vK

pi4'fe "ed

795 000

.

James,
in

; t)

*

■

,

J*

'11

al]

from

long terni

A..

Thomson

Prindiville*

est

partner

&

McKinnon, with
headquarters' in Chicago,. passed
away

mc°me from

-

James /V, JrnndlVlIle

-

Jan.-13 at the age of 64.

v.

and

after

Sales

the

estates

21®'. after
der/

IN

Plan adopted at

the

hitting, proven service planned to
you more sales-more profits. The

comprehensive series of timely business
selling aids ever developed for

builders and

Offers you all these features:
"

"

■

1.

ORGANIZATION

MUTUAL

FUNDS

1

«*"

-

*

V

,

r-

,

Unique sales campaigns tailored to your
specific needs, r :
" * - *

'

.

SjOirect mail letters for your exclusive
use.
3. Continuous research and
statistical data

OFFICES IN PRINCIPAL CITIES

on

Mutual Funds.
391
Now

Grand

Avenue,

Englewood,

Jersey: LOwell 7-0100
On

or

about




BROAD

New York:

April 1st

wain

85

New

Jersey

MUrray Hill 8-8840

our

new

and

office will he located

enlarged

at

STREET, NEW YORK 4, N. Y.

New Telephone:

4.

ACT NOW!
Get

WHitehall 4-2220

full

today

Monthly Letter and other special studies
keep you on top of all Fund developments.

—

•

information

about

gains,

our

s.

to

The necessary sales tools and
aids
you turn

special Dealer Service
—the program of fresh

promotional ideas.

ARTHUR
61

—

to

-

help

opportunities into sales.

WIESENBERGER

Members: N .Y. Stock
Exchange

•

& CO.

American Stock
Exchange-

BROABWAY, NEW YORK 6, N.Y.
TELETYPE: NYl-420

year,

payment of $110,-

helps that really help!

most

and

the

ttieP Em^loy^s' ISment

A hard

KING MERRITT & CO., INC
SPECIALIZING

capita[
for

expenses and taxes; was $1,-

investment brokers.

INTERNATIONAL

were

com.

dividends, inter-

royalties

V

King Merritt, President.

AN

stock

equal to $33^74 per share

?'■

%

year

in toe net assets, after
payment of

.

A

30c

Investors

in

27%

incomes.

quarterly

paid from

American

Inc., stated that as of
Dec. 31, 1956 net assets were
$66-

con-;,
tribute to the long-term growth of num. stock on the 1,800,220 shares
outstanding
business; namely, rising populaNet profit from the sale of secution, productivity, and personal
rities for the year was $3 385,037
A

shareholders.

General

These' Company,

achieved

were

of

23

$4,642,115 in dividends and $197,such
declines
in
industries
of- 900 for preferred stock
purchased
major importance were mure than for
retirement, was $5,257,833. !
offset
by gains in other
areas
Mpf a«Pt?
nftpr rWnntina
demonstrates the resiliency of our'

earning

more

some-"

were

M

difference "of

6%,'

mobile production and 17%
in
residential building. The fact that

bring
opportunity to

by

taxes.

increases

through monthly profit-sharing bonuses.
Find

increased

corporate

3%

balanced

represented in 41 states, two territories

producers—and earners—in the business.

they

to

share

investment

organization than if you operated

exclusively under policies that have built

now

foreign countries.

than

as

i

progressive organization
and four

distributions

independent dealer.

We deal in Mutual Funds

operation

total of 30c

qualified to organize and direct other salesmen,

are

of

mutual fund, made four

we

non-productive paper work.

you can net more with our
as

as

income

common
stocks- economy and shows the strength
cash and receivables—1.5%.-of certain basic factors
which

oils

a

support with tested sales-getting ideas and material.
You

labor

a

worker? dlf£elenCe ot 23

per-'0h

stocks-13.6%,

profit-sharing plan.

Largest

You

hours ..would require

Normal°prodiLti^
I"
^ eslSeri
For'we So/llv
Sii tl

include institutional in-

such

investments

Mutual Funds.

You will participate in our

"5

in

vear

31, 1955 Common-, dices showed gains over 1955.
11,615,000 shares out- example,
industrial
production' ipjy leavin*'
*d'
The company's 45,000 rose about
3%, spendable

and

lodges,

for

gross

billion J

The annual-report of the
noints out that

,

Dec.

shareholders

J
/

Company-, and-. Uniteditov1975, the publication said
"in|
1956. Merchants & Manufacturers, Inc. -order to step up the production

year ago.

state and in several

vestOrs

:—

a

The...company had
13,096,000 which there were divergent ecoshares outstanding at the end of
nomic trends.
Most business

top commissions

estate

"means

cific,
Rubber

$118,900,000

profit sharing
an

Mmki,

ager

Electric

standing.

Build

1957

for the $138 million Telepany, Columbus & Southern Ohio" vision-Electronics Fund
of ChiOregon

wealth had

profit sharing

_

10^7

by

Sanitary Corp., Texas Gulf automation will have to take up
Sulphur Company, Canada / Dry the slack," Television Shares Man.
Ginger Ale, Inc., Louisiana Land agement Corp.. said today in
the;
& Exploration Company, Standard January issue of' its :
publication,I
Oil Company of
California, Sub- "Keeping Up."
The corporation
urban Propane
Gas Corporation, sponsors and is investment
man-||

Total
net
assets
of
Commonwealth Investment Company were.

For Salesmen
on

.

.

•

Assets Reach

This

Based

..

ard

$119,000,000

And Security

..

.........

rnillirm*
American-.Radiator-& Siaisd-^-million* wnrlrpro
workers

were

California

Better Opportunity

-

■

changes in

follows:

"r

and

,

,

P

j.

support this "growing belief," says

residence

drought-plagued agri¬

as

of

in

decade

a

A

the

form

use

long term than they
commonly believed to be up

were

require¬

safer
the

over

and needs, including

projections to meet

the report states, com¬
are
"obviously"
a

stocks

mon

Estates")

illustrates the size and

a

r

(appearing in the January much
of

,

ta"the 'bo^c-Warn6r-Cor- !2»- ^

The first of these, by
Olson, water resources
authority of the engineering con¬
angles.

Edgar

,

'

last

Annual

Number 5604

185

Volume

;

.

The Commercial

.

and Financial Chronicle

(335)

Meeting, net income was $1,137,280. Dividends were paid during

**

TrJniti 3S&3&

net

rom

stock, $990,121 Iron

jnon

Public Administration of the College of. the City'of New ^ York

r\n

'

—

dividends,

interest

imm

during

Congressional military appropria¬
tions for air.power for
fiscal 1958

"it

(the

The Aircraft

company business

lert»rers

15

rtnno

COnunuea pom page

,he willT ,
in-

,vestment
' guest

in

Continued

•

r

"

.will

Scents

re

!"„» firm
term

capital rgains.

....

lege

the

company, at

onH showed an increase equivalent< for
end showed an increase equivalent for

$20,288,165

'made to.shareholders during 1956,
according to the corporation's an-

The .capital

report.

Inual

now

s£me

the

course

of

the

larges^nrollments

marked

fgst

the

f0r

au

mflitnrJ

three

in

in

the

the

nation's

high
aircraft
a

in the proportion of
aircraft and
missile orders as time
goes on. In

backlog

of

un¬

1958,

military

lated

industry's

procurement"

probably

be

"aircraft
65-35

orders may come as

the

over

orders

began.

$15,705,000,000

the

on

Of

books

as

/

the

Civil

orders

airframes, en¬
gines, propellers and parts climbed
from $2,311,000,000 at the begin¬
ning of 1956 to $3,520,000,000 at
-

.

a

re¬

in

favor

of

aircraft, with the possi¬
bility that a 50-50 distribution of

1956

$18,363,000,000
backlog, military orders accounted
for $12,822,000,000
up
from the
$11,553,000,000 at the start of 1956.

Commercial aircraft deliveries

and

ordering will

manned

in

..

aircraft

high production levels during cal¬
endar 1957 and
beyond. However,
there will be a substantial
change

increase

serv-

School

time

activity

beginning July 1, 1957)

filled orders stood at $18,363,000,000 on Oct. 1, 1956, a substantial

output will be started during

-fy *°l a" three milltarY

of

The

and
but the first U< s- production gasciurse turblne airliner <a twin-engine
investment turboprop for use by local service

history of theSBarurh

The

1957

to maintain

serve

industry.

lines during the coming year,
xSeveral new guided missiles are

ofi ^urinS the4 coming year will be
one
a.lmost completely limited to rethe ciprocating-engine-powered types

was

fered.last' spring, it attracted

gain

outstanding

stock

of

be made

,

m„ren

when

dividends amounted to $6.1278 per
share

%

^

the
the two-niiint nreHii course,'•
two-point, credit
Economics 16| takes place on
Thursday andj&iday, Jan. 31 and
Feb. 1. 7-V^.v;-.7

15% over 1955 after giving effeet to three capital gain distribu-

amountingr to

"V

level

jet engines will leave production

the

^..-In^nViSattoh

by!

year-

to

;tions

supervise

%
Registration*ltiay

assets <■ closed-end

net

Corp.

Investment

facuity>,^vill

course.

United States & Foreign Securi-

ties

craft will

share^rom'' Association

per

caoitel eains

long
1

the NatitmS jperate still more supersonic
^Investment Com- £fhtfs and interceptors of the
panies and a.member of the Col- .Century series," -More powerful

fr'om'ne't ?esearch mr*$* «

share

per

$188

and

enable

industry to maintain moderately

continued production of heavier
planes and increasing deliveries of
commercial utility and airline air¬

wings

year

will

1956-1957
r,

139

tor

The aircraft

early

as

industry, in

1961.

an ef¬

fort to keep the U. S. ahead of all
potential enemies in air power,
will

continue

to

its

expand

re¬

search and development activities
and facilities in 1957. The indus¬

try, which has invested
billion of its

$1

more

than

money for
also distributed four-devoted entirlv to
facilities, research and testing in
dividends from ordinary income companies
ha^&en given for full awlines) will be delivered by falL the end of the third quarter^Afid the
years since World War II, is
.amounting
to 97.22
cents per cr dit t anv Mleee or university °xther >iet and turb°Pr°P transport another category labeled ""other
share.
;
•
V ; .I- v
,:v ■ ;
ai^y^iege oruniveisity. planes on order are not scheduled aircraft parts and equipment" planning to spend another billion
The net assets at Dec
31'.';1956~
•he subjectgLpovered during the to be produced until 1958 and (which cannot easily be broken for the same purpose in the next
nil 097 fi'„0T^ sPring semes.will include char- 1959.
down between military and civil)
^amountM tq $125,044,027, equal to acteristics of
half-decade.
o$|n-end and closed$37.77 per share of stock outstand- end investment comnanies manThe aircraft industry is ex- went up from $1,841,000,000 to
$2,021,000,000
during
the
same
; ing.
Per share asset value at the agement -procedures
investment Pected to toP a§ain the $8,500,-

1 corporation

own

.

..

,

-

.

.

t

i

1955

end of

.....

was

$38.95

share.

per

000 000

Common stock investments held

*

S. & Foreign on Dec. 31,
represented the following ap-

by U.
-1956

•

-

try

proximate: percentages
of total
assets:
oil, 44%;- chemical and

by

Federal

types

shareholders

drug, 16; metal and mining, 14;
manufacturing and miscellaneous,

and

State

investment

of

and

estate

in

reached

sales

period.
In
other
words, the backlog of civil orders
during the nine months rose just
about

as

much

209,000,000)

as

on

the

civil

the

on

($1,military

The

Company
increase

anticipated

Common

expert in the field

an

Stock
DIVIDEND

1 ersonal Progress

CONY Credit Course

The Board of Directors has authorired the

appointed

an

industry

.

specialist

research

the

department

the spring

will be

during

given

;

semester at the Bernard
4

-

r'

r

v

•

-

•.

iormerly

Grimm

Mr

was

and

The

,

.

tion of the trust

division;, He is

^

''

^

-,

.

v

.

•

a

bonds

Y£le University and

^

1

-

^

FOUNDATION FUND

.

GROWTH FUNO

1

.(

^

■

■ > •'

;

1953

ant.

as

an

he

Previously

was

i..,:'•'

......

•

•

;

General

Y.

or

held' by the
Boykin C. Wright.

formerly

Murphy is

local dealer,-,

firm

may

the above

the board of direc¬
Investors
Management

,

be obtained from

'

-

of

tion

RECTOR STREET, NEW YORK 6, N.

and

of

a

late
Mr.

to

and

Shearman

Wright and was at one time a
in G. M-P. Murphy

held

and

A mutual fund ' ; V

Museum of the

;

Fundamental

and Kips

Imestors, Iiac.
"

-

.'*

"

.•

.

i

*

City of New York,

Bay Boys Club, Inc4

200,000th Shareholder

descriptive prospectus send

this ad to your

investment dealer of

/-

Hugh- V/;' long and Company; Inc.,
Elizabeth 3, New Jersey.

Wellington Fund, open-end mu¬
withjassets of $550,000,-

tual fund

CFC

acquired its 200,000th
according to an announcement
made
Tuesday
by
Walter L. Morgan, President. Wel¬
lington ranks as the country's 10th
largest corporation in terms of the
000, has just

'

A balanced fund

diversified

number of

Intrestment

..

descriptive prospectus

send
.

this ad to your

investment dealer or

W. Long

and Company, Inc.,

»

Kizabeth 3, New Jersey,




qyc

This

making the
an¬
he recalled that in
1936
Wellington had only 6,500
shareholders and assets were unreported.

In

nouncement,

^-der

$3,000,000.

...

-

-

-

the

common

February I,

1957, to shareholders of record
the close of business

on

declaration
of

the

will

be

determined

above-mentioned

as

soon

las

WILLIAM II. BROWN
Vice President and Trearmfr

R.J.
Tobacco

Company

Makers of

Comet, Cavalier, Winston ft Salem
cigarettes

the

participation is made

Albert, George Washington
smoking tobacco

known.
Pursuant

to

the

extension

granted

by the Supreme

Government under the terms of Finance Decree No. 10,
234 of.December

the exchange
open

10, 1954, the period for acceptance of

authorized by Law No. 8962 will remain

until-December 31, 1957.

QUARTERLY
A

quarterly

cents

per

clared

on

DIVIDEND

dividend

of 80

share has been de¬
the

Common

and

New Class B Common stocks

of

the

Company,

payable

March 5, 1957 to stockholders
CAJA AUTONOMA

DE AMORTIZACION DE LA DEUDA PUBLICA

of record at the close of busi¬

'

EDUARDO SOLMINIHAC K.

SANTIAGO WILSON H.

General Manager

ness

February 15,1957.

President

W. J.

Santiago
December 31,

|
1956.

at

January

22, 1957.

Prince

amount

shareholders.

gain of 39,500
shareholders, or about 750
per
week, over the 160,500 shareholders of Dec.
31, 1955, Mr.,Morgan

completed, and, consequently, the amount of the

This represents a

Fund, Inc.
For free

shareholder

on
on

changes introduced in the legal structure of the-

participation in the profits of said corporation is
not yet known.
For this reason it has not yet been possible to determine
the amount-of interest payable under old Law #5580
which will be paid for 1956 to those bondholders who
have not assented to Law #8962.

-

'

For free

share

stock, payable

fiscal

Wellington Fund Finds

,
•

dividend of fifty cents

a

per

by the Supreme Government and representatives of
industry, the Nitrate balance of 1955-56 has

been

hot
:

'"-■■■
•

their regular

the Nitrate

..

investing in common stocks •-

clared

at

January 9, 1957, de¬

on

Corporacion de Ventas de Salitre y Yodo de Chile by Law
#12018 of April 19th last, approved by the convention

Sterling

Company,, a prominent Wall
Street financial house,
He is a
>: di reef or of Fifth: Avenue Coach
Lines and a trustee of the Beek
man-Downtown H o s p i t a 1,1 the

Corporation

Law No. 8962.
Due to

..

partner in the law

cose

meeting

96.47% of the Swiss franc bonds had been assented

and

limited partner

:

making these amortizations the balance of prin¬

Up to the close of the year corresponding to this decla¬
ration 96.52% of the dollar bonds, 99.08% sterling bonds

Company, Inc„ assuming the posi¬

Directors of the American Vis¬

(50tf)

cipal amount of bonds of the External Debt was as follows:

Gravson M-P. Murphy has been

tors

v

HARE'S -LTD;

Prospectuses

After

elected; to

.}•
-

45%.

was

£16,000,161, US$98,319,000, Swiss Francs, 79.481,100.

INC.:

Distributed by

"

applied to the redemption of the follow¬

The average price of these purchases

circulation.

from

with

Mr. Cutler
was graduated^rom Harvard Col¬
lege in 1950 following service in
the U. S. "Army.

'j

Dividend Notice

ing bonds, purchased below par; £489,444. US$2,685,000,
Swiss Francs 2,187,700, all of which/have been withdrawn

jointed the Trust in
administrative assist¬

Vance, Sanders & Co.

•INCOME FUND,

AMERICAN VISCOSE

CORPORATION

Sinking Fund established in accordance with Law

No. 8962 has been

"Y

,

; ;/

Mr. Cutler

\

•INSURANCE FUND

The

Society of Security Ana- h

i

lysts.

:

BRADLEY, Secretary

AVISCO

Debt of the

Law No. 8962.

He is a member

educatiop committee of the;

Poston
.•

r

indirect External

Republic and the municipalities covered by Law No. 5580
and which assented to the new plan under the aforesaid

of the
•

"'•-.

and

Columbia University Teachers

-

BANK FUND

•

the direct

of

College in 1951,

'

.♦

record

approved by Law Xo. 8962 of

July 20, 1948, announces that the fixed annual interest
of 3% has been paid for the year 1956 to the holders of

received his master's degree from
V

of

Caja Autonoma de Amortizacion de la Deuda

service of the external debt

pripr to^mat was associated

graduate of

Stock

Publica, in accordance with the readjustment plan for the

polony Trust Com-" '!
y pany in the security analysis sec¬

^

Common

CHAS. F.

with the Old

-

of

One Broadway, New York 4, N. Y.

assist_V

Hospital Life Assurance Company

-

per
holders

February 21, 1957, who on that date hedd
regularly issued Common Stock ($1.00
par) of this Company.

Service of Bonds of the External Debt

ant treasurer o£ the Massachusetts

M. Baruch School "of Business and;

19

•

exclusively to investment'

companies

a
dividend of fifty cents
share payable March 8, 1957,

($.50)
to

of.

Massachusetts Investors Trust.

fully accredited college course

-

■

.

in

of

payment

Republic of Chile

Roland DuBois Grimm has been

On Investment Cos. 1
A

in

utilV /
:

*9; merchandising* 2.6; electric
ity, 2; natural gas 1.8.

devoted

United States Lines

($1,269,000,000) side.

craft^hut
ciaft' but guided missile sales,

planning,

DIVIDEND NOTICES

nine-month

in

?™bably wiu continue to decline.
Mllltary output Will probably ap-

laws

company

Mil be discussed by

Each topic

mark

i955' even though the total numberu°u, milRary units produced

appraisal, me&bds'of distribution,
taxation, regulation of the indus-

CONRAD,

Secretary
Winston-Salem, N. C.

January 10, 1957

Financial Chronicle

The Commercial and

140

(336)

Thursday, January 17,

.

constructive

BUSINESS BUZZ

things

on...

about

from the Nation's

g]

Capital

y

w\A/

■

Mm

was

curious

a

of

mixture

ministration

decision,
recom¬
mended by the President in his
Annual Message, for the crea¬
tion of an independent mone¬

First, there

Robertson

such

is

drive to do some
the banking
industry feels should be done.
In this case the desire probably
spearhead of
the

of

a

includes

most

Sproul,

Allan

,

when

President

convention

.

It is

that

the

of

May

was

New

_a

Jersey

-

remedied,

In

the

as seen

er"

by com¬

From the point of view

argent

,

themselves,

most

competitive

the

are

of the

the

re¬

such

for

Cravens

stitutions which have sprung up

4

which

-

a

large

real

commission

a

the

of

is

From the point of view of the

Reserve
*

System, the

of institutions,

new

ing and insuring loans, tend to
large

measure

effectiveness

controls

tary
often

Of

course

selves

general

Administration

opposite

in

to restrict the

the

are

bankers

set

by

other

of

Finance

hand,

the fact
proposed

commission shortly after
idea was pressed upon him
a

commercial

of

this

an

Committee,

as

advocate

of monetary in¬
Wright
Patman

would

come
from a
thorough
perhaps taking a couple
of years, could lead to a chance
for passage of recommendations

mittee the job.

bringing

ever,

Committee

Patman

or

to

give Mr.
Banking Com¬

the

orry

thing which

now

mission

another

his

sees

in

White

policy,

schemes

that

Federal

gether

with

and

rising

military

tional

ordinate"

old

same

eral

groove

to

aid

Federal

and
of

others

borrowed

is a typical political
get the cat off the back

it

stunt to

by

lack

shunting

the problem
study commission. This is

vice

to

recommend

a

new

tary policy.

Unless

monetary commission.
One thing was made clear by
the

President

Message.

This

in
was

his

that

which

of

Annual
some

of

the

business

Mr. Eisenhower is

approach
which
in

the

kind

a

de¬

President

lets

situation
Truman

1947

to

that

year.

Before

the

dumped

a

down,

beginning to.

"anti-inflation"

session,

is

of

November

call

the

session

that

former

of

This

he admitted
idea

the

not rated

Mr. Burns

the

of

society,

reputation

for

too

were

were

was

and

being

segment

one

too sig¬

as

usually
operating the controlled

economic

of

had

depressed

the

jittery

the

if

economy

another

or

too accelerated.

While

istration

far

so

no

is

to

as

it

any

which

conduct

of

words,

a

invest

of

be

even

collar

out

come

time

the

Reserve

possibility

into I the

adverse

might

make

it

as¬

covertly

will

always lurk in the closet. It
open

can

any

circumstances

politically

popular.

Federal

to

"trustee

a

buildings

proposals

such

been

real

on

the

en

a

estate.

beat,"

so

The

"policeman

it were, is giv¬
burglary license.

With

as

these housing and
military housing and
schemes, both Congress

farm

all

and

other

.

the Administration

and

have

a

under both Democratic and

ance

"new

Republican" dogma.

-

Cannot Help Banks

Another

thing

which

commission could
either

the

not

such

a

persuade

Administration

or

Congress to do is to rectify the
disadvantageous competitive re¬
lationships which law has given
classes

new

of

financing insti¬

tutions in comparison with com¬
mercial banks.
There are savings and loan
associations, for instance. These
are
single-purpose investment
institutions, yet their "share ac¬
counts" they in practice pay out
on

demand

deposits.

as

though they were

Banks

invest

cannot

100% of their savings and time
deposits in the
high-yielding
den

to

more.

are forbid¬
by law. Further¬
banks pay the 52% cor¬

do

poration

only

income

as

reserves

share

be

S&L's

taxes;

income

cooperatives, IF their
exceed

accounts,
a

r

corporation

pay

taxes,

to

so

rare

their

of

12%

which

appears

occurrence.

[This column is intended to re¬
flect the "behind the scene" interpretation from the nation's

Study Prospects
At

CapitalM

and may or may not coincide
the "Chronicle's" own

with

its

anti-inflation
the

criticism

of

rising prices and costs.

such
a

an

early stage when

commission has not

approved

even

by Congress

views.]

or

personnel selected, it is im¬
possible to speculate as to what

Texas Eastern Transmission

TRADING MARKETS

A. S.

Bank of America

Botany Mills
Campbell Co. Com.
Fashion Park

Indian Head Mills

Pipeline Common

Pan American
Sulphur

.

United States Envelope

Morgan Engineering

Wagner Electric

National Co.

Bought—Sold—Quoted

Carl Marks

CCHERCK, RICHTER COMPANY
Member Midwest

Bell

Teletype

SL 456




Stock

St.

Louis

FOREIGN

TEL:

HANOVER 2-0050

GArfield 1 0225

2,

IVlo.

&

Co. Inc

Riverside Cement

Sightmaster Corp.

SECURITIES SPECIALISTS

SO BROAD STREET

Exchange

320 N. 4th St.

j

in

such.

Delhi-Taylor

Pacific Northwest

■

j

mortgage, for they
can

in the Admin¬

one

System,this

ministration

Olin Oil & Gas

that

the

other
cannot

as

as

Burns when the

Chairman

was

nervous

sup¬

posed

Anheuser Busch

study)

well

monetary

a

special

President

truck-load

(as

and

Advisers.

designed to deflect from the Ad¬

Universal Match

such

was

driving

then

Colorado Oil & Gas

bank

estate

in

and

credit

"discussed"

certained

President

led

latter

a

especially enamored.

to

to

own

"co¬

with Arthur F.

nificant.

Together with the many yelps
from
speculative builders,

business,"

had

he

doing

its share to abate inflation.

the

council to

policies

create

na¬

a

President's Council of Economic

precludes

Government

December

Reserve

the

commission

Thus

of rising Fed¬

spending, which

the

economic

monetary

President, worried about in¬
flation, feels trapped into the

decision

present there is pending
proposal along this line by
the 27-man Advisory Committee
to the Senate Banking Commit¬

en¬

foreign

publisher

last

Administration

(to¬

spending).

Bell,

repeated his proposal for

one-

would

arm.

Elliott

and

spending

standable motivation behind the

At

such

vested interest in their continu¬

"Newsweek,"

one-third

inflation,

hance

money,

inferred, how¬
that there is a far more
prosaic and politically - under¬

the

When
of

one-

was

political

or

over¬

the

message

over

about

It also may be

better and
more coordinated
system of fi¬
nancial institutions, and a more
uniform
application of mone¬

-

promoting the Welfare

foreign

worry

>

it Is

the thumb of the Administration

to

doubt.

that the President

The

Reserve

moment

present

This is

clear beyond any

as

of Federal

the

has been made

about it is height¬

relation

in

"small

Cat Off the Back

a

to

to it that

to get around the prohibition
of law that they cannot invest

not

the

Patman, however, is not
notoriously popular - in the
House, and it may be doubted
that even backed by Mr. Rayburn, he could persuade the

study,

the

following

sees

except
In

title"

possible to finger any one
as
seeking to put the Reserve
System — the only important
anti
inflationary
force
now
operating in Washington—under

fare

Banking

flation,
Rep.
(D., Tex.).

above-

At

third urgent advocating of wel¬

Rules

about

ened

third

politics,
independent commis¬
sion, with the publicity which

*

become

;

.

w

State.

most

people in
who felt that

only the prestige of

'

Their

riding

proposed by the Congress' fore¬

many

from

tional banks may hold

Book?"

Control

Eisenhower

have

House

Study

government

the

definitely worried about infla¬

House

Mr.

were

Duck'

in Congress.
Speaker
Rayburn indicated that the
job could better be done by the

lationships.

There

in

people

com¬

Sam

competitive aspects,* and
bank supervisors also are

Usefulness of

the

project

them¬

is

It was ruled
by the Treas¬
ury's General Counsel that na¬

'Commercial and Financial Chronicle'?—
bond price averages?—Where's my 'Don¬

my

Administration

has aroused hostility toward the

interested

j

1

which

as

bankers,

predominantly

a group

posed

are

ald

'

President

the

such

interested in the competitive re¬

.

"Where's my
where

in

liquidation

the

and

estate

real

job

Suspicion

the

that

go¬

building for

v*

:

dangerous

national

what

its last Administrator.

as

On

the

in

the beat" to keep

busines.

its

tion.

the

the

by

bang-up

planned

for

Arouses

in the monetary aspects as well
as

a

Reconstruction

Corp.,

directions.

somewhat

are

^mone¬

particularly,
as
when Congress

happens,

and the

ing

of

he

motion,

farious schemes for guarantee¬
r

Eisenhower

types

AND the multi¬

on

necessary

reason¬

the high respect of

admittedly

the

budget

national bank shall

no

for

St. Louis banker, Mr.

won

President

J In the last generation, in

>:

banks' depositors,

Chairman of the Advisory Com¬

mittee, A

was

i part under government auspices.

-

banks

practices

mittee. Kenton R. Cravens is the

lationships between commercial
•

'

Treasury,

national

the

reasoning

reminiscent

banks and various classes of in-

-

the

Federal

'

"policeman

1

bankers

the

of

The

ing used by the Advisory Com¬
'

evade

25 years.

ex¬

language used by
the

was

to

.

asking

over-simplifying it to say
problems most sought

this column,
collabor¬

institution

public buildings
through the legal strategem of a j
"lease," is nominally the "own- j

leading
individuals
private finance.
;

President,

mercial bankers, are two.

ment

Banking

independent

such

financing

Re¬

one

for

Act, explained at various

a

or

from

the

to be

outside

13

to

perts

has

ating with the Federal Govern¬

of both

Senate

and

it

-

Committees, together with eight

Re¬

at

House

the

Association.

Bankers
4

last

such

Democrat and

one

government

Under the Lease-Pur¬

financial

a

proposed

created

publican. from the top

of New York, "pro¬

idea

the

posed

he

Federal

the

of

Bank

serve

have

Board.

Reserve

be

there

prestige may

persuade

love

chase

"Monetary and Financial Insti¬
tutions Commission." It would

officials, such

Federal

the

as

that

Federal

the

of

bank supervisory

committee

Advisory

that

things

monetary
achieve,

can

times previously

end of December this

At the

•

to

schemes.

obsolete

of

scores

study

matter what its

fierce

provisions of these laws.

commission the possible

a

and

scores

the commer¬

are

(D., Va.) in his pro¬

to modernize the Federal
relating to banking and
credit institutions and to delete
gram

cial banking people, who see in

Loose

tees
and
loan
insurance and
financing outside the budget.
Only recently the Administra¬
tion took a step to illustrate the

laws

v

•

capacity

advisory

an

do.

that it should dampen down
the
multifarious schemes of guaran¬

this committee, composed pri¬
marily of commercial bankers,
is
assisting Senator A. Willis

mo¬

tives which resulted in the Ad¬

tary commission.

In

tee.

of

cannot

Systems

commission

be,
„

couple

One thing which no

Mw

no

WASHINGTON, D. C.—There

Undo

Credit

it

speculate

a

definitely

it

Cannot

A

Behind-the-Scene Interpretations

achievements

might bring about.
It
is
possible
to
however,

1957

•

NEW YORK 4, N. Y.

TELETYPE NY 1 971

LERNER & GO.
Investment

10 Post Office

—v

I

Securities

Square, Boston 9, Mass.

Telephone
HUBbard 2-1990

Teletype
*

BS 69